The bill establishes new provisions for temporary interfund loans specifically for school districts that are either in binding conditions or under enhanced financial oversight. A new section is added to chapter 28A.320 RCW, permitting qualifying districts to borrow from their capital projects fund under certain conditions, including a requirement to repay the loan within one calendar year without interest. The bill mandates that the borrowing must not negatively impact any ongoing projects funded by the capital projects fund, and it requires detailed financial reporting of all outstanding interfund loan balances. Additionally, the board of directors must adopt a resolution to approve the loan, which also necessitates the special administrator's approval if the district is under enhanced financial oversight.

Moreover, the bill amends existing laws related to the sale of school district real property, stipulating that proceeds from such sales must be deposited into the debt service fund and/or the capital projects fund, with certain exceptions. It outlines the procedures for selling surplus real property, including public notice and hearings for properties valued over seventy thousand dollars, and mandates a market value appraisal to ensure the sale price is at least ninety percent of the appraised value. The bill also allows the use of licensed real estate brokers for sales while imposing limits on their fees and ensuring that appraisers are not involved in the sale process for three years following an appraisal. These amendments aim to enhance financial accountability and oversight for school districts facing financial challenges while providing mechanisms to manage short-term funding needs and streamline property sales.

Statutes affected:
Original Bill: 28A.505.130, 28A.315.221
Substitute Bill: 28A.505.130, 28A.315.221, 28A.335.130, 28A.335.120