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 declared to be in a financial emergency by the state board of education. The new section, RSA 186:5-a, outlines that the department can assist in developing a recovery plan that may include altering administrative practices, reallocating resources, renegotiating contracts, and overseeing governance for up to one year. The bill also establishes that the state board of education must adopt rules for providing corrective and technical assistance to schools in financial emergencies. Additionally, the bill allows the Department of Education to request up to $200,000 from the education trust fund to support these recovery efforts.

Furthermore, the bill introduces a new section, RSA 186:5-b, which mandates the state board of education to create rules for vetting school district business administrator candidates. It specifies that business administrators must adhere to the educator code of conduct, and any violations related to the financial emergency recovery plan will be considered a breach of this code. The bill is set to take effect on January 1, 2027, and while it does not directly allocate funds, it allows for the potential request of financial support from the education trust fund to assist in implementing recovery plans.