79-10,147.01.

School Financing Review Commission; created.

(1) The School Financing Review Commission is created. The commission shall consist of eighteen members, including:

(a) The Commissioner of Education or a designee of the Commissioner of Education;

(b) The Property Tax Administrator or a designee of the Property Tax Administrator;

(c) One representative of the Governor appointed by the Governor;

(d) Three members of the Legislature, who shall be nonvoting members of the commission, including the Chairperson of the Education Committee of the Legislature or the chairperson's designee, the Chairperson of the Revenue Committee of the Legislature or the chairperson's designee, and one member appointed pursuant to subsection (2) of this section. No more than two members shall be affiliated with the same political party;

(e) One member who is a representative of postsecondary education with expertise in school finance;

(f) Four members who are superintendents or school board members representing a Class I, II, or III school district. There shall be at least one member appointed pursuant to this subdivision (1)(f) representing each class of school district. Of the members appointed pursuant to this subdivision (1)(f), no more than two members shall represent the same class of school district, no more than three members may be superintendents, and no more than three members may be school board members;

(g) One member that is a representative of a Class IV school district and one member that is a representative of a Class V school district. One member appointed pursuant to this subdivision (1)(g) shall be a school board member of the school district being represented and the other member appointed pursuant to this subdivision (1)(g) shall be a school administrator in the other school district being represented; and

(h) Five members appointed from the state at large, which shall include (i) at least one individual having experience in business, (ii) at least one individual having experience in farming, (iii) at least one individual teaching as a certified teacher in a public school, and (iv) two other individuals. Members appointed pursuant to subdivision (i) and (ii) of this subdivision (1)(h) may be retired.

(2)(a) The member to be appointed as described in subdivision (1)(d) of this section shall be appointed by the Executive Board of the Legislative Council in January of each odd-numbered year for a two-year term, except that the initial member shall be appointed within thirty days after June 5, 2025, and shall serve until a successor is appointed in January 2027.

(b) The members described in subdivisions (1)(a) through (c) of this section shall serve as ex officio members of the commission.

(3) The members described in subdivisions (1)(e) through (h) of this section shall be appointed by the Governor within thirty days after June 5, 2025. Initial appointees under this subsection shall serve terms as described in subsection (4) of this section. Thereafter, such members shall serve terms of three years, and any vacancy shall be filled by the Governor for the remainder of the vacated term. For purposes of determining term length and expiration of such terms, the initial terms for such members shall begin thirty days after June 5, 2025.

(4)(a) The initial terms for members described in subdivisions (1)(e) through (h) of this section shall be as follows:

(i) The member appointed pursuant to subdivision (1)(e) of this section, one member described in subdivision (1)(g) of this section, and one member described in subdivision (1)(h) of this section shall serve a three-year term;

(ii) Two members described in subdivision (1)(f) of this section, one member described in subdivision (1)(g) of this section, and one member described in subdivision (1)(h) shall serve an initial term of two years; and

(iii) Two members described in subdivision (1)(f) of this section and three members described in subdivision (1)(h) of this section shall serve an initial term of one year.

(b) The Governor shall, upon appointment, designate the initial term for the members appointed subject to subdivision (4)(a) of this section.

(5) If at any point a member no longer meets the qualification for such member's position on the commission, such member shall vacate membership on the commission. Any vacancy in the commission shall be filled in the same manner and same qualification as the original appointment.

(6) A member of the commission appointed pursuant to subsection (3) of this section shall not receive any compensation for services as a member but shall be reimbursed for expenses incurred as a member of the commission as provided in sections 81-1174 to 81-1177.

(7) The Commissioner of Education or the designee of the Commissioner of Education shall be the chairperson of the commission, and the commission shall elect a vice-chairperson from among its members.

(8) The commission shall meet at least four times a year and at least once per calendar quarter.

(9) The State Department of Education may provide staff to assist the commission as needed and requested by the chairperson of the commission in accordance with guidelines developed by the commission. The commission may also obtain assistance from the State Department of Education, the Department of Revenue, and the Legislative Fiscal Analyst in acquiring the data needed to carry out its duties.

(10) For administrative purposes, the commission shall be housed within the State Department of Education.