HB 1816-FN - AS AMENDED BY THE SENATE
11Mar2026... 0983h
05/07/2026 1636s
2026 SESSION
26-2410
07/08
HOUSE BILL 1816-FN
SPONSORS: Rep. Ladd, Graf. 5; Rep. Spilsbury, Sull. 3; Rep. Popovici-Muller, Rock. 17; Rep. Peeples, Hills. 14; Rep. Kofalt, Hills. 32; Sen. Ward, Dist 8; Sen. Innis, Dist 7
COMMITTEE: Education Funding
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AMENDED ANALYSIS
This bill allows the commissioner of the department of education to initiate and implement a district recovery plan if a school district's financial and operational condition is deemed a financial emergency by the state board of education and requires the state school board to establish rules governing the vetting of school district business administrator candidates.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
11Mar2026... 0983h
05/07/2026 1636s 26-2410
07/08
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty-Six
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Sections; The State School Organization; State Board of Education; State Board Powers and Duties. Amend RSA 186 by inserting after section 5 the following new sections:
186:5-a Financial Emergency Powers of the State Board.
I. Nothing in this section shall be construed to permit either the department of education or the state board of education to take control of the daily operations of any local public school district or school, unless the financial and operational condition of the local public school district or school is deemed a financial emergency by the state board of education necessitating department intervention and oversight. In such an emergency, the commissioner of the department of education shall have authority to assist the school district or school in developing a recovery plan and to oversee such plan to leverage resources to address core financial needs. The recovery plan may consider:
(a) Altering administrative practices and operating conditions;
(b) Reallocating school district or school resources;
(c) Renegotiating contracts and agreements; and
(d) Department oversight of school district or school governance, organizational structure, and/or administrative services identified in RSA 194-C:4, II for up to one year.
II. For purposes of this section, "school in financial emergency" or "school district in financial emergency" necessitates that immediate oversight providing corrective and technical assistance by the department is imperative for the school district or school to meet its financial, operational, and instructional responsibilities for all school-age children. The state board of education shall adopt rules, pursuant to RSA 541-A, relative to implementing corrective and technical assistance to a school district or school in a state of financial emergency.
III. The department of education may request up to $200,000 from the education trust fund into a nonlapsing reserve fund for the purpose of corrective and technical assistance necessary to implement a district financial emergency recovery plan pursuant to this section.
186:5-b Rules for Business Administrators.
I. The state board of education shall adopt rules under RSA 541-A that establish procedures school districts shall follow for vetting school district business administrator candidates and overseeing the work of business administrators.
II. Business administrators shall be subject to the educator code of conduct. Any business administrator found responsible for any outcome under RSA 186:5-a, I(a)-(f) shall be found to have violated the educator code of conduct.
2 Effective Date. This act shall take effect January 1, 2027.
26-2410
Revised 04/07/2026
HB 1816-FN- FISCAL NOTE
AS AMENDED BY THE HOUSE (AMENDMENT #2026-0983h)
AN ACT relative to the intervention of the department of education into a school or school district during a financial emergency.
FISCAL IMPACT:
|
| ||||
Estimated State Impact | |||||
| FY 2026 | FY 2027 | FY 2028 | FY 2029 | |
Revenue | $0 | $0 | $0 | $0 | |
Revenue Fund(s) | None | ||||
Expenditures* | $0 | Indeterminable (Possibly No Impact) | |||
Funding Source(s) | General Fund and Education Trust Fund | ||||
Appropriations* | $0 | See Methodology Below | |||
Funding Source(s) | None | ||||
*Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill | |||||
METHODOLOGY:
This bill, effective January 1, 2027, authorizes the State Board of Education to declare a school or school district in “financial emergency” and, in such cases, allows the Department of Education to provide temporary oversight and assistance to develop and implement a financial recovery plan. The plan may include changes to administration, resource allocation, contracts, and governance for up to one year, while maintaining local control outside of emergency conditions.
Potential costs, if any, to the Department of Education are unknown. The bill intends to allow for the Department to request up to $200,000 from the education trust fund to a "non-lapsing reserve fund" to support corrective and technical assistance. This is assumed to be no more than $200,000 per district financial emergency recovery plan. Please note the following relative to this section:
AGENCIES CONTACTED:
Department of Education
| Date | Amendment |
|---|---|
| March 4, 2026 | 2026-0983h |
| April 22, 2026 | 2026-1636s |
| Date | Body | Type |
|---|---|---|
| Jan. 27, 2026 | House | Hearing |
| Feb. 18, 2026 | House | Exec Session |
| March 3, 2026 | House | Exec Session |
| March 2, 2026 | House | Floor Vote |
| April 1, 2026 | Senate | Hearing |
| Senate | Floor Vote |
May 7, 2026: Ought to Pass with Amendment # 2026-1636s, RC 14Y-8N, MA; OT3rdg; 05/07/2026; SJ 11
May 7, 2026: Committee Amendment # 2026-1636s, AA, VV; 05/07/2026; SJ 11
April 23, 2026: Committee Report: Ought to Pass with Amendment # 2026-1636s, 05/07/2026, Vote 4-2; SC 17
March 26, 2026: Hearing: 04/01/2026, Room 100, SH, 01:30 pm; SC 12
March 17, 2026: Introduced 03/12/2026 and Referred to Education Finance; SJ 7
March 11, 2026: Ought to Pass with Amendment 2026-0983h: MA VV 03/11/2026 HJ 7
March 11, 2026: Amendment # 2026-0983h: AA VV 03/11/2026 HJ 7
March 4, 2026: Committee Report: Ought to Pass with Amendment # 2026-0983h 03/02/2026 (Vote 18-0; CC) HC 10 P. 12
Feb. 18, 2026: ==CONTINUED== Executive Session: 03/03/2026 01:00 pm GP 232
Feb. 11, 2026: ==RECESSED== Executive Session: 02/18/2026 10:00 am GP 234
Jan. 13, 2026: ==ROOM CHANGE== Public Hearing: 01/27/2026 11:00 am GP 234
Dec. 18, 2025: Introduced 01/07/2026 and referred to Education Funding HJ 1 P. 37