Senate Bill No. 434
(By Senators Plymale, Edgell, Love and Sharpe)
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[Introduced February 3, 2003; referred to the Committee on
Education.]
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A BILL to amend and reenact sections two, three, five, fifteen,
sixteen and nineteen, article nine-d, chapter eighteen of the
code of West Virginia, one thousand nine hundred thirty-one,
as amended, all relating to the school building authority
generally; clarifying rule-making powers of school building
authority; adding definition of "rule"; requiring that rules
be filed with the secretary of state and legislative oversight
commission on education accountability; and changing the term
"guidelines" to "rule" throughout.
Be it enacted by the Legislature of West Virginia:
That sections two, three, five, fifteen, sixteen and nineteen,
article nine-d, chapter eighteen of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, be amended and
reenacted, all to read as follows:
ARTICLE 9D. SCHOOL BUILDING AUTHORITY.
§18-9D-2. Definitions.
The following terms, wherever used or referred to in this
article, have the following meanings, unless a different meaning
clearly appears from the context:
(1) "Authority" means the school building authority of West
Virginia or, if said authority shall be abolished, any board or
officer succeeding to the principal functions thereof, or to whom
the powers given to said authority shall be given by law;
(2) "Bonds" means bonds issued by the authority pursuant to
this article;
(3) "Construction project" means a project with a cost of
project greater than five hundred thousand dollars for the new
construction, major renovation of facilities, buildings and
structures for school purposes including the acquisition of land
for current or future use in connection therewith, as well as new
or substantial upgrading of existing equipment, machinery,
furnishings, installation of utilities and other similar items
convenient in connection with placing the foregoing into operation:
Provided, That a construction project may not include such items as
books, computers or equipment used for instructional purposes,
fuel, supplies, routine utility services fees, routine maintenance
costs, ordinary course of business improvements and other items
which are customarily deemed to result in a current or ordinary
course of business operating charge: Provided, however,
That a construction project may not include a major improvement project;
(4) "Cost of project" means the cost of construction,
renovation, repair and safety upgrading of facilities, buildings
and structures for school purposes; the cost of land, equipment,
machinery, furnishings, installation of utilities and other similar
items convenient in connection with placing the foregoing into
operation; and the cost of financing, interest during construction,
professional service fees and all other charges or expenses
necessary, appurtenant or incidental to the foregoing, including
the cost of administration of this article;
(5) "Facilities plan" means the county-wide comprehensive
educational facilities plan for school facilities required prior to
the distribution of state funds to any county board pursuant to
subsection (a), section sixteen of this article;
(6) "Project" means a construction project or a major
improvement project;
(7) "Region" means the area encompassed within and serviced by
a regional educational service agency established pursuant to
section twenty-six, article two of this chapter;
(8) "Revenue" or "revenues" means moneys deposited in the
school building capital improvements fund pursuant to the operation
of section ten, article nine-a of this chapter; moneys deposited in
the school construction fund pursuant to the operation of section
thirty, article fifteen, chapter eleven of this code and pursuant to the operation of section eighteen, article twenty-two, chapter
twenty-nine of this code; moneys deposited in the school building
debt service fund pursuant to section eighteen, article
twenty-two, chapter twenty-nine of this code; moneys deposited in
the school major improvement fund pursuant to the operation of
section thirty, article fifteen, chapter eleven of this code; any
moneys received, directly or indirectly, from any source for use in
any project completed pursuant to this article; and any other
moneys received by the authority for the purposes of this article;
(9) "School major improvement plan" means the ten-year school
maintenance plan to be prepared by each county board of education
and by the state board of education or the administrative council
of an area vocational educational center if such entity seeks
funding from the authority for a major improvement project, which
school major improvement plan is required prior to the distribution
of state funds for a major improvement project pursuant to
subsection (b), section sixteen of this article; and
(10) "School major improvement project" means a project with
a cost greater than fifty thousand dollars and less than five
hundred thousand dollars for the renovation, the repair and safety
upgrading of existing school facilities, buildings and structures,
including the substantial repair or upgrading of equipment,
machinery, building systems, utilities and other similar items
convenient in connection with such renovation, repair or upgrading: Provided,
That a major improvement project may not include such
items as books, computers or equipment used for instructional
purposes, fuel, supplies, routine utility services fees, routine
maintenance costs, ordinary course of business improvements and
other items which are customarily deemed to result in a current or
ordinary course of business operating charge.
(11) "Rule" or "rules" means every regulation, standard,
guideline, or statement of policy or interpretation of general
application and future effect, including the amendment or repeal
thereof, affecting private rights, privileges or interests, or the
procedures available to the public, adopted by the authority to
implement, extend, apply, interpret or make specific the law
enforced or administered by it or to govern its organization or
procedure, but does not include regulations relating solely to the
internal management of the authority. Every rule proposed for
promulgation by the authority shall be classified as a "legislative
rule," an "interpretive rule," or a "procedural rule," all as
defined in section two, article one, chapter twenty-nine-a of this
code.
§18-9D-3. Powers and duties of authority.
The school building authority has the power:
(1) To sue and be sued, plead and be impleaded;
(2) To have a seal and alter the same at pleasure;
(3) To contract to acquire and to acquire, in the name of the authority by purchase, lease-purchase not to exceed a term of
twenty-five years, or otherwise, real property or rights or
easements necessary or convenient for its corporate purposes and to
exercise the power of eminent domain to accomplish those purposes;
(4) To acquire, hold and dispose of real and personal property
for its corporate purposes;
(5) To make bylaws for the management and rule of its affairs;
(6) To appoint, contract with and employ attorneys, bond
counsel, accountants, construction and financial experts,
underwriters, financial advisers, trustees, managers, officers and
such other employees and agents as may be necessary in the judgment
of the authority and to fix their compensation: Provided, That
contracts entered into by the school building authority in
connection with the issuance of bonds under this article to provide
professional and technical services, including, without limitation,
accounting, actuarial, underwriting, consulting, trustee, bond
counsel, legal services and contracts relating to the purchase or
sale of bonds are subject to the provisions of article three,
chapter five-a of this code: Provided, however, That
notwithstanding any other provisions of this code, any authority of
the attorney general of this state relating to the review of
contracts and other documents to effectuate the issuance of bonds
under this article shall be exclusively limited to the form of the
contract and document: Provided further, That the attorney general of this state shall complete all reviews of contracts and documents
relating to the issuance of bonds under this article within ten
calendar days of receipt of the contract and document for review;
(7) To make contracts and to execute all instruments necessary
or convenient to effectuate the intent of and to exercise the
powers granted to it by this article;
(8) To renegotiate all contracts entered into by it whenever,
due to a change in situation, it appears to the authority that its
interests will be best served;
(9) To acquire by purchase, eminent domain or otherwise all
real property or interests in the property necessary or convenient
to accomplish the purposes of this article;
(10) To require proper maintenance and insurance of any
project authorized under this section;
(11) To charge rent for the use of all or any part of a
project or buildings at any time financed, constructed, acquired or
improved, in whole or in part, with the revenues of the authority;
(12) To assist any county board of education that chooses to
acquire land, buildings and capital improvements to existing school
buildings and property for use as public school facilities, by
lease from a private or public lessor for a term not to exceed
twenty-five years with an option to purchase pursuant to an
investment contract with the lessor on such terms and conditions as
may be determined to be in the best interests of the authority, the state board of education and the county board of education,
consistent with the purposes of this article, by transferring funds
to the state board of education as provided in subsection (d),
section fifteen of this article for the use of the county board of
education;
(13) To accept and expend any gift, grant, contribution,
bequest or endowment of money to, or for the benefit of, the
authority, from the state of West Virginia or any other source for
any or all of the purposes specified in this article or for any one
or more of such purposes as may be specified in connection with
the gift, grant, contribution, bequest or endowment;
(14) To enter on any lands and premises for the purpose of
making surveys, soundings and examinations;
(15) To contract for architectural, engineering or other
professional services considered necessary or economical by the
authority to provide consultative or other services to the
authority or to any regional educational service agency or county
board requesting professional services offered by the authority, to
evaluate any facilities plan or any project encompassed in the
plan, to inspect existing facilities or any project that has
received or may receive funding from the authority, or to perform
any other service considered by the authority to be necessary or
economical. Assistance to the region or district may include the
development of preapproved systems, plans, designs, models or documents; advice or oversight on any plan or project; or any other
service that may be efficiently provided to regional educational
service agencies or county boards by the authority;
(16) To provide funds on an emergency basis to repair or
replace property damaged by fire, flood, wind, storm, earthquake or
other natural occurrence, the funds to be made available in
accordance with guidelines of the school building authority subject
to rules adopted by the authority in accordance with the provisions
of article three-a, chapter twenty-nine-a of this code;
(17) To transfer moneys to custodial accounts maintained by
the school building authority with a state financial institution
from the school construction fund and the school improvement fund
created in the state treasury pursuant to the provisions of section
six of this article, as necessary to the performance of any
contracts executed by the school building authority in accordance
with the provisions of this article;
(18) To enter into agreements with county boards and persons,
firms or corporations to facilitate the development of county board
projects and county board facilities plans. The county board
participating in an agreement shall pay at least twenty-five
percent of the cost of the agreement. Nothing in this section
shall be construed to supersede, limit or impair the authority of
county boards to develop and prepare their projects or plans; and
(19) To promulgate, adopt, amend or repeal rules, in accordance with the provisions of article three-a, chapter
twenty-nine-a of this code. The authority shall cause a copy of
any rule it proposes to promulgate, adopt, amend or repeal under
the authority of this article to be filed with the secretary of
state for inclusion in the state register and with the legislative
oversight commission on education accountability created in article
three-a, chapter twenty-nine-a of this code; and
(19) (20) To do all things necessary or convenient to carry
out the powers and duties given set forth in this article.
§18-9D-5. School building authority authorized to offer individual
higher education savings plans.
(a) Legislative findings.
-- The Legislature hereby finds and
declares that:
(1) It is an essential function of state government to
encourage postsecondary education in order to increase the
education level of the residents of the state of West Virginia.
(2) Tuition, fees and other costs at institutions of higher
education are difficult for many to afford and are difficult to
predict in order to enable individuals and families to plan for the
payment of such costs.
(3) Students in elementary and secondary schools tend to
achieve a higher standard of performance when the payment of
tuition, fees and other costs for their higher education is
secured.
(4) It is in the best interest of the people of the state of
West Virginia and is necessary for the public health, safety and
welfare to encourage state residents desiring a higher education to
enroll in institutions of higher education in order to provide
well-educated and informed citizens.
(b) Purpose.
-- In light of the findings described in
subsection (a) of this section and in light of the purposes of this
article, the Legislature declares that the purpose of this section
is to encourage higher education and the means of paying costs
relating thereto by (1) authorizing establishment of higher
education savings plan programs; and (2) providing funding for such
programs through the sale and purchase of school building authority
revenue bonds to be used to make capital improvements for primary
and secondary educational facilities in this state, or through the
sale and purchase of refunding revenue bonds, as provided in this
article.
(c) Authorization.
-- The school building authority is
authorized to offer to the general public one or more higher
education savings plan programs. In order to establish, operate
and maintain an efficient and effective program or programs, the
school building authority shall have such additional powers as are
necessary or reasonably desirable to implement such a program or
programs. These additional powers shall include, but are not
limited to, the power to:
(1) Issue revenue bonds in accordance with the provisions of
this section and as authorized by this article;
(2) Permit employees of the state of West Virginia and its
subdivisions to purchase through payroll deductions by their
employer bonds of not less than one thousand dollar maturity
increments when issued pursuant to this section;
(3) As deemed considered appropriate and practical, offer bond
issues which take into consideration the various needs of different
individuals participating in a higher education savings plan
program;
(4) Offer a rate or rates of interest on bonds purchased
pursuant to such a program which encourages maximum participation;
(5) Execute a separate trust agreement or agreements under
section twelve of this article for bonds sold pursuant to an
individual higher education savings plan program established under
this section;
(6) Transfer available moneys of the school building
authority, including revenues, investment earnings on funds or
accounts established in connection with the issuance of bonds and
moneys available from any other source, to funds or accounts as may
be necessary or desirable in establishing a higher education
savings plan program, including, but not limited to, escrow funds,
investment agreements or similar instruments;
(7) Establish program guidelines Adopt rules in accordance with the provisions of article three-a, chapter twenty-nine-a of
this code establishing procedures for the administration of a
higher education savings plan program.
(d) Construction.
-- Other sections of this article which
apply generally to bonds issued under this article shall apply to
the revenue bonds or refunding revenue bonds issued under this
section. If any language in this section conflicts with language
in another section of this article, the language of this section
shall control unless such a construction would be unlawful, or
would not be in the public interest, or would be contrary to the
statements of finding and purpose of this section.
(e) Tax treatment.
--
(1) The amount which an individual expends during a taxable
year in the purchase of revenue bonds or refunding revenue bonds
issued pursuant to this section shall be allowed as a deduction
from federal adjusted gross income for such year, or, if not fully
deducted during such year, for the remaining four years, until
fully deducted, for purposes of the tax imposed by article
twenty-one, chapter eleven of this code, except as provided in
subdivision (3) of this subsection.
(2) The interest which an individual earns on revenue bonds or
refunding revenue bonds issued under this section shall not be
subject to the tax imposed by article twenty-one, chapter eleven of
this code, except as provided in subdivision (3) of this subsection.
(3) If the owner of a revenue bond or refunding revenue bonds
purchased under this section sells it or receives the proceeds of
such bond at maturity or otherwise during a taxable year and does
not, within four years of the date of such sale or other
disposition, expend an amount equal to such proceeds for tuition,
fees, books, reasonable room and board, and child care costs
necessary to enable a person to attend an institution of higher
education, such proceeds of sale or other disposition not so spent
shall be taxed under article twenty-one, chapter eleven of this
code, by application of the applicable rate to the taxpayer to the
amount not so spent. The amount of tax imposed shall be due and
payable on the fifteenth day of April of the taxable year
immediately succeeding the fourth taxable year in which the bond
was sold or otherwise disposed of.
(f) Confidentiality.
-- The identity of any individual
purchasing revenue bonds under this section, the amount of the
bonds so purchased by any individual and the amount allowed as an
income tax deduction shall be and remain confidential information:
Provided,
That nothing herein shall prohibit the disclosure of the
number of individuals purchasing the bonds, the aggregate amount of
bond purchased, or other general information which does not breach
any individual's confidentiality.
(g) Reports.
-- The school building authority and the indenture trustee of an individual higher education savings plan
program shall make such reports regarding such bonds to the tax
commissioner and to the individuals of record who own the bonds
with respect to bond principal and interest (and the years to which
they relate) and such other matters as the tax commissioner may
reasonably require. The reports required by this section shall be
filed with the tax commissioner at least annually, at such time and
in such manner as the tax commissioner may by regulation require.
§18-9D-15. Legislative intent; distribution of money.
(a) It is the intent of the Legislature to empower the school
building authority to facilitate and provide state funds and to
administer all federal funds provided for the construction and
major improvement of school facilities so as to meet the
educational needs of the people of this state in an efficient and
economical manner. The authority shall make funding determinations
in accordance with the provisions of this article and shall assess
existing school facilities and each facility's school major
improvement plan in relation to the needs of the individual
student, the general school population, the communities served by
the facilities and facility needs statewide.
(b) An amount that is no more than three percent of the sum of
moneys that are determined by the authority to be available for
distribution during the then current fiscal year from: (1) Moneys
paid into the school building capital improvements fund pursuant to section ten, article nine-a of this chapter; (2) the issuance of
revenue bonds for which moneys in the school building debt service
fund are pledged as security; (3) moneys paid into the school
construction fund pursuant to section six of this article; and (4)
any other moneys received by the authority, except moneys paid into
the school major improvement fund pursuant to section six of this
article, may be allocated and may be expended by the authority for
projects that service the educational community statewide or, upon
application by the state board, for educational programs that are
under the jurisdiction of the state board. In addition, upon
application by the state board or the administrative council of an
area vocational educational center established pursuant to article
two-b of this chapter, the authority may allocate and expend under
this section moneys for school major improvement projects proposed
by the state board or an administrative council for school
facilities under the direct supervision of the state board or an
administrative council, respectively: Provided, That the authority
may not expend any moneys for a school major improvement project
proposed by the state board or the administrative council of an
area vocational educational center unless the state board or an
administrative council has submitted a ten-year school major
improvement plan, to be updated annually, pursuant to section
sixteen of this article: Provided, however, That the authority
shall, before allocating any moneys to the state board or the administrative council of an area vocational educational center for
a school improvement project, consider all other funding sources
available for the project.
(c) An amount that is no more than two percent of the moneys
that are determined by the authority to be available for
distribution during the current fiscal year from: (1) Moneys paid
into the school building capital improvements fund pursuant to
section ten, article nine-a of this chapter; (2) the issuance of
revenue bonds for which moneys in the school building debt service
fund are pledged as security; (3) moneys paid into the school
construction fund pursuant to section six of this article; and (4)
any other moneys received by the authority, except moneys deposited
into the school major improvement fund, shall be set aside by the
authority as an emergency fund to be distributed in accordance with
the guidelines rules adopted by the authority.
(d) The remaining moneys determined by the authority to be
available for distribution during the then current fiscal year
from: (1) Moneys paid into the school building capital
improvements fund pursuant to section ten, article nine-a of this
chapter; (2) the issuance of revenue bonds for which moneys in the
school building debt service fund are pledged as security; (3)
moneys paid into the school construction fund pursuant to section
six of this article; and (4) any other moneys received by the
authority, except moneys deposited into the school major improvement fund, shall be allocated and expended on the basis of
need and efficient use of resources, the basis to be determined by
the authority in accordance with the provisions of section sixteen
of this article.
(e) If a county board of education proposes to finance a
project that is approved pursuant to section sixteen of this
article through a lease with an option to purchase leased premises
upon the expiration of the total lease period pursuant to an
investment contract, the authority may allocate no moneys to the
county board in connection with the project: Provided, That the
authority may transfer moneys to the state board of education
which, with the authority, shall lend the amount transferred to the
county board to be used only for a one-time payment due at the
beginning of the lease term, made for the purpose of reducing
annual lease payments under the investment contract, subject to the
following conditions:
(1) The loan shall be secured in the manner required by the
authority, in consultation with the state board, and shall be
repaid in a period and bear interest at a rate as determined by the
state board and the authority and shall have such terms and
conditions as are required by the authority, all of which shall be
set forth in a loan agreement among the authority, the state board
and the county board;
(2) The loan agreement shall provide for the state board and the authority to defer the payment of principal and interest upon
any loan made to the county board during the term of the investment
contract, and annual renewals of the investment contract, among the
state board, the authority, the county board and a lessor:
Provided, That in the event a county board which has received a
loan from the authority for a one-time payment at the beginning of
the lease term does not renew the subject lease annually until
performance of the investment contract in its entirety is
completed, the county board is in default and the principal of the
loan, together with all unpaid interest accrued to the date of the
default, shall, at the option of the authority, in consultation
with the state board, become due and payable immediately or subject
to renegotiation among the state board, the authority and the
county board: Provided, however, That if a county board renews the
lease annually through the performance of the investment contract
in its entirety, the county board shall exercise its option to
purchase the leased premises: Provided further, That the failure
of the county board to make a scheduled payment pursuant to the
investment contract constitutes an event of default under the loan
agreement: And provided further, That upon a default by a county
board, the principal of the loan, together with all unpaid interest
accrued to the date of the default, shall, at the option of the
authority, in consultation with the state board, become due and
payable immediately or subject to renegotiation among the state board, the authority and the county board: And provided further,
That if the loan becomes due and payable immediately, the
authority, in consultation with the state board, shall use all
means available under the loan agreement and law to collect the
outstanding principal balance of the loan, together with all unpaid
interest accrued to the date of payment of the outstanding
principal balance; and
(3) The loan agreement shall provide for the state board and
the authority to forgive all principal and interest of the loan
upon the county board purchasing the leased premises pursuant to
the investment contract and performance of the investment contract
in its entirety.
(f) To encourage county boards to proceed promptly with
facilities planning and to prepare for the expenditure of any state
moneys derived from the sources described in this subsection, any
county board failing to expend money within three years of the
allocation to the county board shall forfeit the allocation and
thereafter is ineligible for further allocations pursuant to this
subsection until the county board is ready to expend funds in
accordance with an approved facilities plan: Provided, That the
authority may authorize an extension beyond the three-year
forfeiture period not to exceed an additional two years. Any
amount forfeited shall be added to the total funds available in the
school construction fund of the authority for future allocation and distribution.
(g) The remaining moneys that are determined by the authority
to be available for distribution during the then current fiscal
year from moneys paid into the school major improvement fund
pursuant to section six of this article shall be allocated and
distributed on the basis of need and efficient use of resources,
the basis to be determined by the authority in accordance with the
provisions of section sixteen of this article: Provided, That the
moneys may not be distributed to any county board that does not
have an approved school major improvement plan or to any county
board that is not prepared to commence expenditures of the funds
during the fiscal year in which the moneys are distributed:
Provided, however, That any moneys allocated to a county board and
not distributed to that county board shall be deposited in an
account to the credit of that county board, the principal amount to
remain to the credit of and available to the county board for a
period of two years. Any moneys which are unexpended after a
two-year period shall be redistributed on the basis of need from
the school major improvement fund in that fiscal year.
(h) No local matching funds may be required under the
provisions of this section. However, the responsibilities of the
county boards of education to maintain school facilities are not
negated by the provisions of this article. To be eligible to
receive an allocation of school major improvement funds from the authority, a county board must have expended in the previous fiscal
year an amount of county moneys equal to or exceeding the lowest
average amount of money included in the county board's maintenance
budget over any three of the previous five years and must have
budgeted an amount equal to or greater than the average in the
current fiscal year: Provided, That the state board of education
shall promulgate rules relating to county boards' maintenance
budgets, including items which shall be included in the budgets.
(i) Any county board may use moneys provided by the authority
under this article in conjunction with local funds derived from
bonding, special levy or other sources. Distribution to a county
board, or to the state board or the administrative council of an
area vocational educational center pursuant to subsection (b) of
this section, may be in a lump sum or in accordance with a schedule
of payments adopted by the authority pursuant to guidelines rules
adopted by the authority.
(j) Funds in the school construction fund shall first be
transferred and expended as follows:
Any funds deposited in the school construction fund shall be
expended first in accordance with an appropriation by the
Legislature. To the extent that funds are available in the school
construction fund in excess of that amount appropriated in any
fiscal year, the excess funds may be expended in accordance with
the provisions of this article. Any projects which the authority identified and announced for funding on or before the first day of
August, one thousand nine hundred ninety-five, or identified and
announced for funding on or before the thirty-first day of
December, one thousand nine hundred ninety-five, shall be funded by
the authority in an amount which is not less than the amount
specified when the project was identified and announced.
(k) It is the intent of the Legislature to encourage county
boards to explore and consider arrangements with other counties
that may facilitate the highest and best use of all available
funds, which may result in improved transportation arrangements for
students, or which otherwise may create efficiencies for county
boards and the students. In order to address the intent of the
Legislature contained in this subsection, the authority shall grant
preference to those projects which involve multicounty arrangements
as the authority shall determine reasonable and proper.
(l) County boards shall submit all designs for construction of
new school buildings to the school building authority for review
and approval prior to preparation of final bid documents:
Provided, That a vendor who has been debarred pursuant to the
provisions of sections thirty-three-a through thirty-three-f,
inclusive, article three, chapter five-a of this code, may not bid
on or be awarded a contract under this section.
(m) The authority may elect to disburse funds for approved
construction projects over a period of more than one year subject to the following:
(1) The authority may not approve the funding of a project for
more than three years; and
(2) The authority may not approve the use of more than fifty
percent of the revenue for projects to be funded over more than one
year.
§18-9D-16. Facilities and major improvement plans generally;
need-based eligibility.
(a) To facilitate the goals as stated in section fifteen of
this article and to assure the prudent and resourceful expenditure
of state funds for construction projects as described in subsection
(d) of said section, each county board of education shall submit a
county-wide comprehensive educational facilities plan that
addresses the facilities and major improvement needs of the county
pursuant to such guidelines rules as shall be adopted by the
authority in accordance with this section the provisions of article
three-a, chapter twenty-nine-a of this code and in accordance with
each county's facilities plan approved by the state board of
education. Any project receiving funding shall be in furtherance
of such approved county-wide facilities plan.
(1) To assure efficiency and productivity in the project
approval process, the county-wide facilities plan shall be
submitted only after a preliminary plan, a plan outline or a
proposal for a plan has been submitted to the authority. Selected members of the authority, which selection shall include citizen
members, shall then meet promptly with those persons designated by
the county board to attend the facilities plan consultation. The
purpose of the consultation is to assure understanding of the
general goals of the school building authority and the specific
goals encompassed in the following criteria and to discuss ways the
plan may be structured to meet those goals.
(2) The guidelines rules for the development of a facilities
plan shall state the manner, timeline and process for submission of
any plan to the authority; such project specifications as may be
deemed appropriate by the authority; and those matters which are
deemed by the authority to be important reflections of how the
project will further the overall goals of the authority.
(b) To facilitate the goals as stated in section fifteen of
this article and to assure the prudent and resourceful expenditure
of state funds derived from the school major improvement fund, each
county board of education shall submit to the authority a ten-year
county-wide school major improvement plan that addresses the major
improvement needs of each school within the county. If the state
board of education or the administrative council of an area
vocational educational center chooses to seek funding for a major
improvement project from the authority pursuant to subsection (f)
of said section, the state board or such administrative council
shall submit a ten-year school major improvement plan that addresses the major improvement needs of the school or area
vocational educational center for which funding is sought. Each
ten-year school major improvement plan shall be prepared pursuant
to such guidelines rules as shall be adopted by the authority in
accordance with this section the provisions of article three-a,
chapter twenty-nine-a of this code and shall be updated annually to
reflect projects completed and new or continuing needs. Any school
major improvement project funded by the authority shall be in
furtherance of such approved school major improvement plan.
The guidelines rule for the development and annual updates of
a ten-year school major improvement plan shall state the manner,
timeline and process for submission of any plan, including a repair
and replacement schedule for school facilities, to the authority;
such maintenance specifications as may be deemed appropriate by the
authority; and those matters which are deemed by the authority to
be important reflections of how the major improvement project or
projects will further the overall goals of the authority.
(c) The guidelines rule regarding submission of the facilities
plans and school major improvement plans shall include requirements
for public hearings, comments or other means of providing
broad-based input within a reasonable time period as the authority
may deem appropriate. The submission of each plan shall be
accompanied by a synopsis of all comments received and a formal
comment by the county board, the state board or the administrative council of an area vocational educational center submitting such
plan.
The guidelines rule regarding project specifications may
include such matters as energy efficiency, preferred siting,
construction materials, maintenance plan or any other matter
related to how the project is to proceed. If a county board of
education proposes to finance a construction project through a
lease with an option to purchase pursuant to an investment contract
as described in subsection (e), section fifteen of this article,
the specifications for such project shall include the term of the
lease, the amount of each lease payment, including the payment due
upon exercise of the option to purchase, and the terms and
conditions of the proposed investment contract.
(d) The guidelines rule pertaining to quality educational
facilities shall require that a facilities plan address how the
current facilities do not meet and how the proposed plan and any
project thereunder does meet the following goals:
(1) Student health and safety;
(2) Economies of scale, including compatibility with similar
schools that have achieved the most economical organization,
facility utilization and pupil-teacher ratios;
(3) Reasonable travel time and practical means of addressing
other demographic considerations;
(4) Multicounty and regional planning to achieve the most effective and efficient instructional delivery system;
(5) Curriculum improvement and diversification, including
computerization and technology and advanced senior courses in
science, mathematics, language arts and social studies;
(6) Innovations in education;
(7) Adequate space for projected student enrollments; and
(8) To the extent constitutionally permissible, each
facilities plan shall address the history of efforts taken by the
county board to propose or adopt local school bond issues or
special levies.
If the project is to benefit more than one county in the
region, the facilities plan shall state the manner in which the
cost and funding of the project shall be apportioned among the
counties.
(e) The guidelines rule pertaining to quality educational
facilities shall require that a school major improvement plan
address how the proposed plan and any project thereunder meet the
following goals:
(1) Student health and safety, including, but not limited to,
critical health and safety needs; and
(2) Economies of scale, including regularly scheduled
preventive maintenance: Provided,
That each county board's school
maintenance plan shall address regularly scheduled maintenance for
all facilities within the county.
(f) Each county board's facilities plan and school major
improvement plan shall prioritize all the construction projects or
major improvement projects, respectively, within the county. A
school major improvement plan submitted by the state board or the
administrative council of an area vocational educational center
shall prioritize all the school improvement projects contained in
such plan. Such priority list shall be one of the criteria to be
considered by the authority in determining how available funds
shall be expended. In prioritizing the projects, the county board,
the state board or the administrative council submitting a plan
shall make determinations in accordance with the objective criteria
formulated by the school building authority.
(g) Each facilities plan and school major improvement plan
shall include the objective means to be utilized in evaluating
implementation of the overall plan and each project included
therein. Such evaluation shall measure each project's furtherance
of each applicable goal stated in this section and any guidelines
rule adopted hereunder, as well as the overall success of any
project as it relates to the facilities plan or school major
improvement plan and the overall goals of the authority.
(h) The state department of education shall conduct on-site
inspections, at least annually, of all facilities which have been
funded wholly or in part by moneys from the authority or state
board to ensure compliance with the county board's facilities plan and school major improvement plan as related to such facilities; to
preserve the physical integrity of the facilities to the extent
possible; and to otherwise extend the useful life of the
facilities: Provided,
That the state board shall submit reports
regarding its on-site inspections of facilities to the authority
within thirty days of completion of such on-site inspections:
Provided, however,
That the state board shall promulgate rules
regarding such on-site inspections and matters relating thereto, in
consultation with the authority, as soon as practical and shall
submit such proposed rules for legislative review no later than the
first day of December, one thousand nine hundred ninety-four.
(i) The authority may adopt guidelines a rule for requiring
that a county board modify, update, supplement or otherwise submit
changes or additions to an approved facilities plan or for
requiring that a county board, the state board or the
administrative council of an area vocational educational center
modify, update, supplement or otherwise submit changes or additions
to an approved county board facilities plan or school major
improvement plan. The authority shall provide reasonable
notification and sufficient time for such change or addition as
delineated in guidelines developed a rule adopted by the authority.
(j) Based on its on-site inspection or notification by the
authority to the state board that the changes or additions to a
county's board facilities plan or school major improvement plan required by the authority have not been implemented within the time
period prescribed by the authority, the state board shall restrict
the use of the necessary funds or otherwise allocate funds from
moneys appropriated by the Legislature for those purposes set forth
in section nine, article nine-a of this chapter.
§18-9D-19. Comprehensive high schools.
(a) The Legislature finds the following:
(1) The decline in student enrollment over the last twenty
years has necessitated consolidation of schools in many counties;
(2) It is projected that the decline in student enrollment
during the period two thousand two through two thousand twelve may
be as great as eighteen percent and will continue the necessity to
consolidate schools;
(3) The new consolidated school buildings now being built
across the state provide an opportunity for communities to have
comprehensive high schools that include space for
vocational-technical courses, community college courses and other
workforce related courses for the students and the public at large;
(4) Requiring students to be bused to remote vocational
centers has sometimes deterred student participation in vocational
courses and has sometimes been considered a stigma upon those
students attending vocational courses;
(5) Offering vocational, community college and workforce
programs in close proximity to each other compliment the high school and the programs; and
(6) The change in the season for girls' basketball to coincide
with boys' basketball has placed significant pressures on the
availability of gymnasium space and often has caused practices to
be scheduled late in the evenings and on weekends, interfering with
time needed for studying and rest.
(b) When planning the construction of a high school which has
been approved by the authority and which meets the required
authority efficiencies, the authority shall provide funding for
comprehensive vocational facilities to be located, when feasible,
on the same site as the high school and may, in cooperation with
the higher education policy commission, established in section one,
article one-b, chapter eighteen-b, provide funding for facilities
for community and technical college education. When building in
conjunction with the higher education policy commission, an
educational specification shall be developed for the proposed new
facility by the appropriate institutional governing board as
defined in section two, article one, chapter eighteen-b of this
code. The county board is the fiscal agent for construction. All
planning, design, bidding and construction shall be completed with
authority guidelines as specified in rules adopted by the authority
in accordance with the provisions of article three-a, chapter
twenty-nine-a of this code and shall be completed under the
supervision of the authority.
(c) When planning the construction of a high school which has
been approved by the authority and meets the required authority
efficiencies, the authority shall provide funding sufficient for
the construction of at least one auxiliary gymnasium. The
authority may establish standards for the auxiliary gymnasium.
(d) Upon application of a county board to construct
comprehensive vocational facilities at an existing high school, the
authority will provide technical assistance to the county in
developing a plan for construction of the comprehensive vocational
facility. Upon development of the plan, the authority shall
consider funding based on the following criteria:
(1) The distance of any existing vocational facilities from
the high schools it serves;
(2) The time required to travel to and from the vocational
facility to the high schools it serves;
(3) The ability of the county board to provide local funds for
the construction of new comprehensive vocational facilities;
(4) The size of the existing high schools and the demand for
vocational technical courses;
(5) The age and physical condition of the existing vocational
facilities; and
(6) Such other criteria as the authority shall consider
appropriate.
NOTE: The purpose of this bill is to clarify the rule-making
process for the School Building Authority.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
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