This bill amends current law to empower the commissioner of the Department of Education to initiate a district recovery plan when a school district is deemed to be in a financial emergency by the state board of education. The new section, RSA 186:5-a, specifies that the department can provide oversight and assistance to develop a recovery plan that may include altering administrative practices, reallocating resources, renegotiating contracts, and overseeing governance for up to one year. Additionally, the bill allows the department to request up to $200,000 from the education trust fund to support the implementation of these recovery plans.

Furthermore, the bill mandates the state board of education to establish rules for vetting school district business administrator candidates and monitoring their work, as outlined in the new section RSA 186:5-b. This includes adherence to the New Hampshire code of conduct and ethics for educational professionals. The effective date for this act is set for January 1, 2027.