This bill empowers the commissioner of the Department of Education to initiate and implement a district recovery plan when a school district's financial and operational condition is classified as a financial emergency by the state board of education. The bill repeals and reenacts RSA 193-H:5, which clarifies that the Department of Education and the state board cannot take control of daily operations of a local public school district unless a financial emergency is declared. In such cases, the commissioner is authorized to assist in developing a recovery plan that may include altering administrative practices, reallocating resources, renegotiating contracts, and overseeing governance and administrative services for up to one year.

Additionally, the bill stipulates that a "school in financial emergency" requires immediate oversight to fulfill its financial, operational, and instructional responsibilities. The state board of education is tasked with adopting rules for implementing corrective and technical assistance in these situations. Furthermore, the Department of Education may request up to $200,000 from the education trust fund to support the necessary corrective actions outlined in the recovery plan. The act is set to take effect on January 1, 2027.