The proposed bill amends Chapter 16-7.2 of the General Laws, known as "The Education Equity and Property Tax Relief Act," by introducing a new section that allows school districts to opt out of spending on unfunded mandates starting July 1, 2026. Specifically, it states that a school district may choose not to allocate funds for any mandate that is not fully funded by the state education aid formula or other state funding received from the Department of Elementary and Secondary Education. The bill defines a "mandate" as any rule or policy that requires a school district to incur expenses without corresponding state funding.

Additionally, the bill requires that if a school district decides to not spend money on an unfunded mandate, it must notify the department in writing by August 31 of the fiscal year in which the decision is made, detailing the specific mandate and the amount saved. Importantly, the bill stipulates that school districts will not face penalties or reductions in state aid as a result of choosing not to spend on these unfunded mandates. This act will take effect upon passage.