The bill introduces provisions for temporary interfund loans specifically for school districts that are under binding conditions or enhanced financial oversight. It allows these districts to borrow from their capital projects fund, requiring repayment within one calendar year without interest. The bill mandates that financial reports detail all outstanding interfund loan balances and requires the board of directors to adopt a resolution for loan approval, which must also be sanctioned by a special administrator if the district is under enhanced oversight. Additionally, it establishes a new section permitting districts in binding conditions to request authorization from the superintendent of public instruction to sell real property, with proceeds aimed at alleviating financial burdens or funding temporary interfund loans.

Moreover, the bill amends existing laws to clarify the conditions for utilizing interfund loans, particularly in response to budget destabilization caused by the COVID-19 pandemic. It emphasizes transparency and accountability by requiring the office of the superintendent of public instruction to adopt implementation rules. The bill also mandates the superintendent to implement recommendations from financial oversight committees, which will be monitored by educational service districts. It outlines the process for selling surplus real property, ensuring proceeds are deposited into designated funds, and stipulates that any contracts or actions taken without necessary approvals are null and void. Overall, the bill aims to enhance financial accountability and ensure school districts adhere to established financial guidelines.

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