SB 5412 — Providing temporary interfund loans for school districts.

S-1370.2S-0701.1 SUBSTITUTE SENATE BILL 5412 State of Washington 69th Legislature 2025 Regular Session By Senate Early Learning & K-12 Education (originally sponsored by Senators Robinson, Chapman, Nobles, and Saldaña)Saldaña READRead FIRSTfirst TIMEtime 02/13/25.01/22/25.

Referred to Committee on Early Learning & K-12 Education.

amending RCW 28A.505.130,28A.505.130 28A.315.221, 28A.335.130, and 28A.335.120;28A.315.221;

(d) The school district's financial reports, including monthly financial reports provided to the board of directors of the district, must specify all outstanding interfund loan balances.

1 SSBSB 5412 (d)(2)(a) The schoolboard district'sof financialdirectors reports,of includinga monthlyqualifying financialschool reportsdistrict providedmust toadopt thea boardresolution ofto directorsapprove ofa thetemporary district, must specify all outstanding interfund loan balances.transaction.

(2)(a) The board of directors of a qualifying school district must adopt a resolution to approve a temporary interfund loan transaction.

(c) Beginning in the 2019-20 school year, the superintendent of public instruction must require school districts to provide a supplemental expenditure schedule by revenue source that identifies p.

2 SSBSB 5412 (c) Beginning in the 2019-20 school year, the superintendent of public instruction must require school districts to provide a supplemental expenditure schedule by revenue source that identifies the amount expended by object for each of the following supplementary enrichment activities beyond the state funded amount:

School districts shall maintain these p.records until the state auditor has completed the audit under RCW 43.09.2856.

3p. SSB 5412 records until the state auditor has completed the audit under RCW 43.09.2856.

3 SB 5412 (e) For school districts of the second class as defined ((by [in])) in RCW 28A.300.065, a depreciation subfund for the school district to reserve funds for future facility and equipment needs.

(a) Major renovation and replacement of facilities and systems where periodical repairs are no longer economical or extend the p.

4 SSBSB 5412 (a) Major renovation and replacement of facilities and systems where periodical repairs are no longer economical or extend the useful life of the facility or system beyond its original planned useful life.

(ii) Costs associated with the application and modernization of technology systems for operations and instruction including, but not limited to, the ongoing fees for online applications, subscriptions, or software licenses, including upgrades and incidental services, and ongoing training related to the installation and integration of these p.

5 SSBSB 5412 or software licenses, including upgrades and incidental services, and ongoing training related to the installation and integration of these products and services.

(4) An associated student body fund as authorized by RCW 28A.325.030.

6 SSBSB 5412 (4)(5) AnAdvance associatedrefunding studentbond bodyfunds fundand refunded bond funds to provide for the proceeds and disbursements as authorized byin RCWchapter 28A.325.030.39.53 RCW.

(5) Advance refunding bond funds and refunded bond funds to provide for the proceeds and disbursements as authorized in chapter 39.53 RCW.

(2) The financial oversight committee comprises two representatives from the office of the superintendent of public instruction, one representative from an educational service district where a financially insolvent school district is not located, and one p.

7 SSBSB 5412 instruction, one representative from an educational service district where a financially insolvent school district is not located, and one nonvoting representative from the educational service district where the financially insolvent school district is located.

((and))and (d) Liquidation or disposition of fixed assets and contractual liabilities by any reasonable and documented method provided the liquidation or disposition of fixed assets and contractual liabilities is reasonably necessary before filing a dissolution petition;petition.

and(6) Any new, amended, or renewed contract entered into by a school district that is subject to enhanced financial monitoring that has not been approved by the educational service district or special p.

8 SSBSB 5412 (e)administrator, Directingor thethat saleis ofinconsistent realwith propertyconditions orimposed assetson of the school district andpursuant directingto thethis depositsection, ofis proceedsnull fromand suchvoid. sale into a fund as selected by the committee.

(6) Any new, amended, or renewed contract entered into by a school district that is subject to enhanced financial monitoring that has not been approved by the educational service district or special administrator, or that is inconsistent with conditions imposed on the district pursuant to this section, is null and void.

Sec.

5.

RCW 28A.335.130 and 2004 c 6 s 2 are each amended to read as follows:

((Except as provided in RCW 28A.335.240(1), the)) The proceeds from any sale of school district real property by a board of directors shall be deposited to the debt service fund and/or the capital projects fund, except for ((amounts)):

(1) Amounts required to be expended for the costs associated with the sale of such property, which moneys may be deposited into the fund from which the expenditure was incurred ;

(2) Amounts authorized by a financial oversight committee established under RCW 28A.315.221 to be deposited into a different fund;

or (3) As provided in RCW 28A.335.240(1).

Sec.

6.

RCW 28A.335.120 and 2006 c 263 s 913 are each amended to read as follows:

(1) The board of directors of any school district of this state may:

p.

9 SSB 5412 (a) Sell for cash, at public or private sale, and convey by deed all interest of the district in or to any of the real property of the district which is no longer required for school purposes or which has been authorized for sale by a financial oversight committee established under RCW 28A.315.221;

and (b) Purchase real property for the purpose of locating thereon and affixing thereto any house or houses and appurtenant buildings removed from school sites owned by the district and sell for cash, at public or private sale, and convey by deed all interest of the district in or to such acquired and improved real property.

(2) When the board of directors of any school district proposes a sale of school district real property pursuant to this section and the value of the property exceeds seventy thousand dollars, the board shall publish a notice of its intention to sell the property.

The notice shall be published at least once each week during two consecutive weeks in a legal newspaper with a general circulation in the area in which the school district is located.