Substitute House Bill No. 7239 establishes the District Repair and Improvement Program (DRIP) to provide financial assistance to public school operators (PSOs) for minor capital repairs, improvements, and maintenance of school facilities. The bill aims to reduce the need for extensive renovations in the future and enhance the safety and accessibility of school buildings. It defines key terms related to public school operators and eligible projects, which include construction, renovation, and compliance with health and safety codes. The program will allocate funds annually based on a formula that distributes 20% equally among PSOs and the remaining 80% based on student enrollment and grand list percentages.

To fund the DRIP program, the bill authorizes the issuance of up to $60 million in general obligation bonds, with $30 million designated for fiscal years 2026 and 2027. It creates a nonlapsing District Repair and Improvement Account to manage these funds and mandates that PSOs submit annual reports on their expenditures and maintain records for at least three years. The bill includes new legal language regarding the allocation process and the establishment of the account, while deleting provisions related to previous funding mechanisms. Additionally, it prohibits the use of allocated funds for local matching requirements or for projects under the Department of Administrative Services’ school construction grant program, ensuring that the funds are specifically directed towards the intended repair and improvement projects. The effective date for the bill is set for July 1, 2025.