HB-4369 Summary

• Allows school boards and intermediate school boards to borrow money and issue notes for school operations, with notes maturing within 372 days and pledging state school aid as repayment.

• Permits districts unable to redeem notes within 372 days to enter multi-year repayment agreements with lending institutions, subject to approval by the state treasurer or department of treasury.

• Establishes a line of credit option allowing school boards to pledge up to 30% of state school aid for operational funding, requiring state treasurer approval through a formal application process.

• Creates the state school reform/redesign officer position to oversee lowest-achieving 5% of public schools, implementing intervention models (turnaround, restart, closure, transformation) and allowing modifications to collective bargaining agreements as necessary.

• Exempts schools operated by districts with active emergency managers under the Local Financial Stability and Choice Act from mandatory state school reform/redesign supervision.