SB 1226 Summary

• Expands permissible uses of school district sinking funds to include pupil transportation, in addition to existing uses of building construction/repair, school security improvements, and technology acquisition/upgrading.

• Applies the expanded pupil transportation use only to sinking fund taxes authorized on or after the bill's effective date, while grandfathering in taxes authorized before that date under previous authorization rules.

• Reduces the maximum levy period for sinking fund taxes authorized after March 29, 2017 from 20 years to 10 years.

• Requires school districts to conduct annual independent audits of sinking funds and submit reports to the Department of Treasury, with penalties for misuse including repayment of funds and prohibition on future sinking fund levies.

• Defines "school security improvement" to include capital improvements like metal detectors, cameras, and lighting, plus mobile telephone applications for emergency communications, but excludes personnel and operational costs.