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 under certain conditions, including a requirement to repay the loan within one calendar year without interest and ensuring that the loan does not adversely affect any ongoing projects. The board of directors must adopt a resolution outlining the loan details, and if the district is under enhanced oversight, approval from a special administrator is also necessary. 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. The superintendent can only approve such sales if the district can demonstrate the necessity for restoring financial stability. The bill also amends existing laws related to budgetary constraints and the establishment of various funds within school districts, ensuring that interfund loans are not used to balance budgets except under specific circumstances, such as those arising from the COVID-19 pandemic. It emphasizes transparency and accountability in financial transactions, requiring that proceeds from the sale of real property be deposited into designated funds, with a clear process for public notice and appraisal of surplus properties.

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