The bill establishes provisions for temporary interfund loans specifically for school districts that are either in binding conditions or under enhanced financial oversight. These districts are permitted to borrow from their capital projects fund, with the stipulation that the loan must be repaid within one calendar year without interest. The board of directors is required to adopt a resolution that outlines the loan amount, the funds involved, repayment sources, and the repayment schedule. For districts under enhanced financial oversight, a special administrator must approve the loan. Additionally, the bill mandates the Office of the Superintendent of Public Instruction to create rules for implementing these provisions.

Moreover, the bill allows school districts in binding conditions to seek authorization from the Superintendent of Public Instruction to sell real property, with proceeds aimed at alleviating financial burdens or funding temporary interfund loans. It includes measures to ensure transparency and accountability, such as limiting districts to one authorization for property sales within a ten-year period. The bill also clarifies the conditions for utilizing interfund loans, particularly in the context of budget stabilization post-COVID-19. It enhances financial oversight by requiring the superintendent to implement recommendations from oversight committees, appointing special administrators, and ensuring that any unauthorized contracts or actions by school districts are null and void. Additionally, it amends existing laws regarding the sale of real property, specifying that proceeds must be deposited into designated funds, with certain exceptions.

Statutes affected:
Original Bill: 28A.505.130, 28A.315.221
Substitute Bill: 28A.505.130, 28A.315.221, 28A.335.130, 28A.335.120
Bill as Passed Legislature: 28A.505.130, 28A.315.221, 28A.335.130, 28A.335.120
Session Law: 28A.505.130, 28A.315.221, 28A.335.130, 28A.335.120