This bill establishes a new revolving loan fund specifically for school districts, called the school district adequacy revolving loan fund, which will be administered by the state treasury. The fund aims to provide financial assistance to school districts experiencing cash flow issues while waiting for adequacy payments from the state. To facilitate this, the bill amends RSA 6:12 to incorporate the new fund into the State Treasurer's application of receipts and introduces a new subdivision in RSA 194 that details the fund's purpose, structure, and operational guidelines. Key provisions include a cap on total outstanding loans at 75% of the total adequacy funding for any given year, with interest rates determined by the state treasurer. The bill also outlines conditions for school districts to access the fund, such as obtaining approval from the commissioner of education and the state treasurer, conducting audits, and adhering to specific loan terms.

Additionally, the bill introduces provisions regarding student eligibility based on family income, allowing students from families earning at or below 350% of the federal poverty guidelines to qualify for certain benefits. It also mandates the Department of Education to amend rule 510.03(b) to include definitions of unprofessional conduct, such as gross financial mismanagement and misappropriation of public funds. The bill repeals several existing statutes related to the school district adequacy revolving loan fund, including RSA 6:12, I(b)(411) and RSA 194:62 through RSA 194:67, with the repeal effective July 1, 2030. The remaining provisions of the act will take effect upon passage.

Statutes affected:
As Amended by the Senate: 6:12, 198:39