The bill amends several sections of Washington state law related to school district financial management, primarily focusing on enhancing oversight and accountability for districts experiencing financial distress. It mandates that educational service district superintendents assist school districts in budget preparation and provide additional oversight for those in binding conditions or showing indicators of financial distress. A new section requires educational service districts to conduct detailed budget reviews and attend school board meetings for districts under financial scrutiny, ensuring that any irregular expenditures or financial misconduct are reported to the state auditor.

Additionally, the bill introduces governance training requirements for school board directors, which must include training on cultural competency and financial management. The Washington State School Directors' Association is tasked with developing and updating governance training programs that cover district budgeting and financial health. The bill also establishes a process for hiring applicants in public schools, requiring them to authorize the disclosure of any past violations that would bar them from employment, thereby enhancing the vetting process for school personnel. Furthermore, it includes provisions for civil liability for directors or employees who violate budgetary restrictions, with specific consequences for those found guilty of financial malfeasance.

Statutes affected:
Original bill: 28A.310.300, 28A.343.100, 28A.505.150