HZ2301 Summary

• Amends the soft capital allocation section to change "shall only" to "may" regarding use of soft capital funds, allowing more flexibility in how school districts use these allocations for short-term capital items.

• Modifies soft capital fund requirements by removing language that prohibited use for maintenance and operation expenses and eliminated mandatory compliance with administrative soft capital adequacy standards.

• Clarifies that unspent contributions designated for discontinued programs or programs unused for two consecutive fiscal years are considered undesignated funds in the following fiscal year.

• Requires public schools receiving contributions under the tax credit program to report spending categorized by specific extracurricular activity or character education program to the department.

• Allows public schools to use up to 50 percent of unencumbered contributions received in previous fiscal years for short-term capital items (technology, textbooks, equipment, etc.) during fiscal years 2011-2012 and 2012-2013, with reporting requirements to the legislature.