This bill establishes a new revolving loan fund, named the school district adequacy revolving loan fund, to be administered by the state treasury. The fund aims to provide financial assistance to school districts experiencing cash flow issues while awaiting adequacy payments from the state. It amends RSA 6:12 to incorporate this 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 accessing the fund, such as obtaining approval from the commissioner of education and the state treasurer, and mandates financial reporting and audits for participating districts.

Additionally, the bill allows for the use of funds from the education trust fund to support the revolving loan fund and includes amendments to the Department of Education's rules regarding unprofessional conduct, particularly concerning financial mismanagement and inadequate record-keeping. It repeals several existing statutes related to the school district adequacy revolving loan fund, including RSA 6:12, I(b)(411), RSA 194:62 through RSA 194:67, and RSA 198:39, V. The effective date for most provisions is upon passage, while the repeal of existing statutes will take effect on July 1, 2030. The fiscal impact of the bill remains indeterminable, as it will depend on the number of school districts that apply for loans under this new program.

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