This bill amends existing law (RCW 28A.530.080 and RCW 28A.525.162) to expand school districts’ authority to contract indebtedness and to issue bonds, notes, or other obligations without a vote of district electors for certain purposes. It conditions that nonvoted indebtedness authority on statutory indebtedness limits and specific prerequisites: for the authority to be used for purposes in RCW 28A.530.010(3) a district must have voter approval to collect a construction/modernization levy under RCW 84.52.053, must not have been on binding conditions under RCW 28A.505.110 in the prior two years, and must forgo state construction funding the district could otherwise be eligible for under RCW 28A.525.162–.180. The bill also states that any project funded from proceeds of such nonvoted bonds is ineligible for state funding assistance under those sections. The bill creates procedural requirements for nonvoted bonds over $250,000: a published notice of intent at least once weekly for two consecutive weeks (with the last notice at least seven days before) and a public hearing at a regular or special school board meeting allowing public comment; these notice/hearing rules do not apply to refinancing or refunding. It requires bonds to be issued and sold under chapter 39.46 RCW and directs bond proceeds to specified local funds (capital projects, transportation vehicle, or general fund). It also directs the superintendent of public instruction (OSPI) to allot common school construction fund appropriations in accordance with the chapter and to adopt rules, including rules to equate district capital effort and to define terms for alternative enrollment calculations. The bill changes state allotment conditions for construction funds by requiring districts to provide local funds equal to the difference between total approved project cost and computed state assistance before allotment, with two exceptions: OSPI may waive the local requirement for districts that have previously provided local funds equal to 2.5% of taxable property value, and no local funds are required when the state allotment is solely to make structural changes to bring facilities into compliance with Section 504. It also specifies adjustments for computing adjusted valuation per pupil using the most recent October head count and allows districts options for excluding certain out‑of‑district alternative learning experience students, with OSPI rulemaking to define “regular basis” and “reasonable duration.” The statute defines “preschool students with disabilities” for these purposes. The text references several external statutes (including RCW 28A.530.010, RCW 39.36.020(3), RCW 28A.525.166, and others) and omits those provisions; the exact scope of permitted purposes, indebtedness limits, and detailed funding computations depend on those referenced provisions and are not included here.

If enacted, the bill lets school districts take on nonvoted debt (issue bonds, notes, or other indebtedness) to buy property or carry out certain capital projects without a voter bond measure, provided they stay within statutory debt limits and meet conditions such as having prior voter approval for a construction/modernization levy for some project types, not having been under binding state conditions for the prior two years, and foregoing state construction aid for any project paid from those nonvoted bond proceeds. Districts must publicly notice and hold a school board hearing before issuing nonvoted bonds over $250,000 (refinancings are exempt), and bond proceeds must be deposited into specified funds; OSPI will control allotments, approve some forms, and write rules for enrollment adjustments and ALE exclusions. The groups most affected are school districts and their boards, which gain a faster financing option but take on more local debt and lose eligible state funding for projects financed by these nonvoted bonds, increasing their net local cost and requiring new public-notice and hearing work. OSPI’s responsibilities increase because it must allot funds, grant waivers in limited circumstances, and adopt rules, while voters have reduced direct control over some capital borrowing. Important details needed to judge the full impact—exact project categories allowed, the precise debt limits, how state aid is calculated, and the OSPI rule standards—are referenced but not included in the provided text.