Senate Bill No. 100
(By Senators Burdette, Mr. President, and Boley,
By Request of the Executive)
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[Introduced October 17, 1993;
referred to the Committee on Finance.]
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A BILL to amend and reenact section thirty, article fifteen,
chapter eleven of the code of West Virginia, one thousand
nine hundred thirty-one, as amended; to amend and reenact
section ten, article nine-a, chapter eighteen of said code;
and to amend and reenact sections two, six, eight, thirteen
and fifteen, article nine-d of said chapter, all relating to
dedicating consumers sales tax for the payment of debt
service on bonds issued by the school building authority and
the regional jail authority and providing for the
disposition of the balance of the collections of consumers
sales tax; providing for the certification for the amount
needed to pay debt service; providing for the payment of
debt service on bonds issued prior to the first day of
January, one thousand nine hundred ninety-four, or bonds
issued for the refunding of bonds issued prior to that date;
creating a special fund for the deposit of pledged revenues;
providing for the issuance of bonds for which the dedicated
revenue is pledged for repayment; limiting the permissible
expenditures from the school building capital improvement
fund and the school building debt service fund; and limiting
the total amount of debt which may be issued by the school
building authority.
Be it enacted by the Legislature of West Virginia:
That section thirty, article fifteen, chapter eleven of the
code of West Virginia, one thousand nine hundred thirty-one, as
amended, be amended and reenacted; that section ten, article
nine-a, chapter eighteen of said code be amended and reenacted;
and that sections two, six, eight, thirteen and fifteen, article
nine of said chapter be amended and reenacted, all to read as
follows:
CHAPTER 11. TAXATION.
ARTICLE 15. CONSUMERS SALES TAX.
§11-15-30. Proceeds of tax; dedication of certain revenues.
The proceeds of the tax imposed by this article shall be
distributed as provided in subsections (a) (b) and (c) of this
section. deposited in the general revenue fund of the state:
Provided, That beginning the first day of July, one thousand nine
hundred eighty-nine, and continuing each month thereafter through
the last day of July, one thousand nine hundred ninety-two, the
first five million dollars of proceeds of this tax for each month
shall be paid into the "Fiscal Responsibility Fund" created by
section nineteen, article one, chapter five of this code and usedfor the purposes specified therein, and that on and after the
first day of August, one thousand nine hundred ninety-two, and
continuing each month thereafter until any money borrowed under
section nine-d, article six, chapter twelve of this code is
repaid, the first five million dollars of proceeds of this tax
for each month shall be paid into the "Education Enhancement
Fund" created by section nine-d, article six, chapter twelve of
this code: Provided, however, That if no money is borrowed under
section nine-d, article six of said chapter twelve, before the
first day of August, one thousand nine hundred ninety-two, then
no tax collected under this article shall be deposited into the
"Education Enhancement Fund", and if money is borrowed after the
thirtieth day of June, one thousand nine hundred ninety-two, then
payment into the "Education Enhancement" Fund shall begin the
first day of the calendar month succeeding the month in which
funds are borrowed under section nine-d, article six of said
chapter twelve: Provided further, That if less than sixty
million dollars is borrowed under said section nine-d, then the
amount to be paid into the "Education Enhancement Fund" each
month, as provided in this section, shall be that proportion of
five million dollars that the amount of money borrowed bears to
sixty million dollars
(a) Beginning the first day of November, one thousand nine
hundred ninety-three, and continuing on the first day of each
succeeding month thereafter, there shall be dedicated monthly as
a first priority from the collections of this tax, prior to thepayment or commitment of the proceeds or collections of this tax
for any other purpose whatsoever, an amount equal to one-eighth
of the projected annual principal and interest requirements on
any and all revenue bonds and refunding bonds issued, or to be
issued, on or after the first day of January, one thousand nine
hundred ninety-four, for which bonds moneys in the "School
Building Debt Service Fund" have been pledged, or will be
pledged, for repayment pursuant to section six, article nine-d,
chapter eighteen of this code, such principal and interest
requirements having been certified to the tax commissioner in
accordance with the provisions of section six, article nine-d,
chapter eighteen of this code: Provided, That in no event shall
the total dedicated collections of this tax to be paid into the
"School Building Debt Service Fund," as provided in this section,
in any fiscal year exceed the lesser of the principal and
interest requirements certified to the tax commissioner as
aforesaid, or twelve million dollars. The amount so dedicated
shall be deposited on a monthly basis into the "School Building
Debt Service Fund" created pursuant to section six, article
nine-d, chapter eighteen of this code.
(b) Beginning the first day of November, one thousand nine
hundred ninety-three and continuing on the first day of each
succeeding month thereafter, there shall be dedicated monthly as
a second priority from the collections of this tax, prior to the
payment or commitment of the proceeds or collections of this tax
for any other purpose, other than the first priority from thecollections of this tax for the "School Building Debt Service
Fund" as set forth in this section, an amount equal to one-eighth
of the projected annual principal and interest requirements on
any and all revenue bonds or refunding bonds issued, or to be
issued, or lease-purchase obligations incurred, or to be
incurred, on or after the first day of January, one thousand nine
hundred ninety-four, for which moneys in the "Regional Jail and
Correctional Facility Development Fund" have been pledged, or
will be pledged for repayment pursuant to section ten, article
twenty, chapter thirty-one of this code, such principal and
interest requirements having been certified to the tax
commissioner in accordance with the provisions of section ten,
article twenty, chapter thirty-one of this code: Provided, That
in no event shall the proceeds of this tax, to be paid annually
into the "Regional Jail and Correctional Facility Development
Fund," in any fiscal year exceed the lesser of the principal and
interest requirements certified to the tax commissioner as
aforesaid, or four million dollars. The amount so dedicated
shall be deposited monthly into the "Regional Jail and
Correctional Facility Development Fund" created by section ten,
article twenty, chapter thirty-one of this code.
(c) The proceeds from the tax imposed by this article
remaining after compliance with the provisions of subsections (a)
and (b) shall be deposited in the general revenue fund of the
state.
CHAPTER 18. EDUCATION.
ARTICLE 9A. PUBLIC SCHOOL SUPPORT.
§18-9A-10. Foundation allowance to improve instructional
programs.
(a) For the school year beginning on the first day of July,
one thousand nine hundred ninety-three only, thirty-two million,
five hundred twenty thousand, nine hundred ninety-four dollars,
unless a greater amount is appropriated by the Legislature, in
addition to funds which accrue from allocations due to increase
in total local share above that computed for the school year
beginning on the first day of July, one thousand nine hundred
ninety-three, from balances in the general school fund, or from
appropriations for such purpose shall be allocated to increase
state support of counties as follows:
Provided, That for the
school year beginning on the first day of July, one thousand nine
hundred ninety-three only, no county shall gain more than
seventy-three and sixty-six one-hundredths percent or lose more
than twenty-six and thirty-four one-hundredths percent over the
previous year's allocation:
Provided, however, That for the
school year beginning on the first day of July, one thousand nine
hundred ninety-four and thereafter, the sum of the allocations
shall be in an amount at least equal to the amount appropriated
by the Legislature, in addition to funds which accrue from
allocations due to increase in total local share above that
computed for the previous school year, from balances in the
general school fund, or from appropriations for such purposes:
(1) One hundred fifty thousand dollars shall be allocated toeach county; and
(2) Distribution to the counties of the remainder of these
funds shall be made proportional to the average of each county's
average daily attendance for the preceding year and the county's
second month net enrollment. Moneys allocated by provision of
this section shall be used to improve instructional programs
according to a plan for instructional improvement which the
affected county board shall file with the state board by the
first day of August of each year, to be approved by the state
board by the first day of September of that year if such plan
substantially complies with standards to be adopted by the state
board:
Provided, That notwithstanding any other provision of
this code to the contrary, moneys allocated by provision of this
section may also be used in the implementation and maintenance of
the uniform integrated regional computer information system.
(3) For the school year beginning on the first day of July,
one thousand nine hundred ninety-three, up to twenty-five
percent of this allocation may be used to employ professional
educators and/or service personnel in counties after all
applicable provisions of sections four and five of this article
have been fully utilized.
Prior to the use of any funds from this section for
personnel costs, the county board must receive authorization from
the state superintendent of schools. The state superintendent
shall require the district board to demonstrate: (1) The need
for the allocation, (2) efficiency and fiscal responsibility instaffing, and (3) sharing of services with adjoining counties and
the regional educational service agency for that county in the
use of the total local district board budget. District boards
shall make application for available funds by the first day of
May:
Provided, That for the school year beginning on the first
day of July, one thousand nine hundred ninety-three only,
district boards shall make application for available funds by the
fifteenth day of June, one thousand nine hundred ninety-three.
On or before the first day of June, the state superintendent
shall review all applications and notify applying district boards
of the distribution of the allocation:
Provided, however, That
for the school year beginning on the first day of July, one
thousand nine hundred ninety-three only, the state superintendent
shall review all applications and notify applying district boards
of the distribution of the allocation on or before the first day
of July, one thousand nine hundred ninety-three. Such funds
shall be distributed during the fiscal year as appropriate. The
state superintendent shall require the county board to
demonstrate the need for an allocation for personnel based upon
the county's inability to meet the requirements of state law or
state board policy:
Provided further, That the funds available
for personnel under this section may not be used to increase the
total number of professional noninstructional personnel in the
central office beyond four. Such instructional improvement plan
shall be made available for distribution to the public at the
office of each affected county board.
(b) Commencing with the school year beginning on the first
day of July, one thousand nine hundred ninety-three,
thirty-five
million, four hundred forty thousand, four hundred ninety-three
dollars an amount not less than the amount required to meet debt
service requirements on any revenue bonds issued prior to the
first day of January, one thousand nine hundred ninety-four and
the debt service requirements on any revenue bonds issued for the
purpose of refunding revenue bonds issued prior to the first day
of January, one thousand nine hundred ninety-four, shall be paid
into the school building capital improvements fund created by
section six, article nine-d of this chapter, and shall be used
solely for the purposes of said article nine-d.
The school
building capital improvements fund shall not be utilized to meet
the debt services requirement on any revenue bonds or revenue
refunding bonds for which moneys contained within the "School
Building Debt Services Fund" have been pledged for repayment
pursuant to section six of article nine-d of this chapter.
Provided, That in the event that additional money is authorized
for expenditure for new construction bonds, then this
appropriation shall be increased in an amount no less than the
new debt service. In each fiscal year thereafter, fifty percent
of the funds which accrue due to an increase in local share above
that computed for the school year beginning on the first day of
July, one thousand nine hundred eighty-seven, shall be paid into
the school building capital improvements fund created by section
six, article nine-d of this chapter, and shall be used solely forthe purposes of said article nine-d: Provided, however, That if
funds are available and appropriated in each such subsequent
fiscal year, not less than seven million seven hundred thousand
dollars shall be added to the amount of the prior year's
appropriation for such fund
ARTICLE 9D. SCHOOL BUILDING AUTHORITY.
§18-9D-2. Definitions.
The following terms, wherever used or referred to in this
article, shall 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) "Project" or "capital improvement project" means the new
construction, major renovation, repair and safety upgrading of
facilities, buildings and structures for school purposes
including the acquisition of land for current or future use in
connection therewith, equipment, machinery, furnishings,
installation of utilities and other similar items convenient in
connection with placing the foregoing into operation, but may not
include such items as books, fuel, supplies and other items which
are customarily deemed to result in a current operating charge;
(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) "Revenue" or "revenues" mean 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 building debt service 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 the use of all or any part of any project
completed pursuant to this article; and any other moneys received
by the authority for the purposes of this article;
(6) "Facilities plan" means the regional plan for school
facilities required prior to the distribution of state funds to
any county board pursuant to section fifteen; and
(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.
§18-9D-6. School building capital improvements fund in state
treasury; school building debt service fund in the state
treasury; collections to be paid into special funds;
authority to pledge such collections as security for revenue
bonds; authority to finance projects on a cash basis.
(a) There is
created continued in the state treasury a
school building capital improvements fund to be expended by the
authority
as provided in for the purposes of this article.
The school building authority shall have authority to pledge
all or such part of the revenues paid into the school building
capital improvements fund as may be needed to meet the
requirements of any revenue bond issue or issues authorized by
this article
prior to the first day of January, one thousand nine
hundred ninety-four or revenue bonds issued to refund revenue
bonds issued prior to that date, including the payment of
principal of, interest and redemption premium, if any, on such
revenue bonds and the establishing and maintaining of a reserve
fund or funds for the payment of the principal of, interest and
redemption premium, if any, on such revenue bond issue or issues
when other moneys pledged may be insufficient therefor, including
such additional protective pledge of revenues as the authority in
its discretion
may provide has provided by resolution authorizing
the issue of such bonds
and or in any trust agreement made in
connection therewith. The authority may further provide in such
resolution and in such trust agreement for such priorities on the
revenues paid into such school building capital improvements fund
as may be necessary for the protection of the prior rights of the
holders of bonds issued at different times under the provisions
of this article.
Any balance remaining in the school building capital
improvements fund after the authority has issued bonds authorized
by this article, and after the requirements of all funds
including reserve funds established in connection with the bonds
issued pursuant to this article have been satisfied, may be used
for the redemption of any of the outstanding bonds issued
hereunder which by their terms are then redeemable, or for the
purchase of such bonds at the market price, but not exceeding the
price, if any, at which such bonds shall in the same year be
redeemable, and all bonds redeemed or purchased shall forthwith
be canceled and shall not again be issued.
The school building authority, in its discretion, may use
the moneys in the school building capital improvements fund to
finance the cost of projects on a cash basis. Any pledge of
moneys in such fund for revenue bonds shall be a prior and
superior charge on such fund over the use of any of the moneys in
such fund to pay for the cost of any project on a cash basis:
Provided, That any expenditures from such fund, other than for
the retirement of revenue bonds, may only be made by the
authority in accordance with the provisions of this article.
(b) There is hereby created in the state treasury a special
fund named the "School Building Debt Service Fund" into which
shall be deposited on and after the first day of November, one
thousand nine hundred ninety-three, the amounts specified in
section thirty, article fifteen, chapter eleven of this code.
All amounts deposited in the fund shall be pledged to therepayment of the principal, interest and redemption premium, if
any, on any revenue bonds or refunding revenue bonds authorized
by this article: Provided, That moneys so deposited shall not be
pledged to the repayment of any revenue bonds issued prior to the
first day of January, one thousand nine hundred ninety-three, or
with respect to revenue bonds issued for the purpose of refunding
revenue bonds issued prior to the first day of January, one
thousand nine hundred ninety-four. The authority may further
provide in the resolution and in the trust agreement for
priorities on the revenues paid into the school building debt
service fund as may be necessary for the protection of the prior
rights of the holders of bonds issued at different times under
the provisions of this article. On or prior to the first day of
January of each year, commencing the first day January, one
thousand nine hundred ninety-four, the authority shall certify to
the state tax commissioner the principal and interest
requirements for the following fiscal year on any revenue bonds
issued on or after the first day of January, one thousand nine
hundred ninety-four, and for which moneys deposited in the
"School Building Debt Service Fund" have been pledged, or will be
pledged, for repayment pursuant to this section: Provided, That
before the first day of November, one thousand nine hundred
ninety-three, the authority shall also certify to the tax
commissioner of the state the principal and interest requirements
for the fiscal year ending on the thirtieth day of June, one
thousand nine hundred ninety-four, on any revenue bonds issued,or to be issued, on or after the first day of January, one
thousand nine hundred ninety-four.
After the authority has issued bonds authorized by this
article, and after the requirements of all funds have been
satisfied, including reserve funds established in connection with
the bonds issued pursuant to this article, any balance remaining
in the school building debt service fund may be used for the
redemption of any of the outstanding bonds issued hereunder
which, by their terms, are then redeemable or for the purchase of
the outstanding bonds at the market price, but not to exceed the
price, if any, at which redeemable, and all bonds redeemed or
purchased shall be forthwith canceled and shall not again be
issued.
(c) The Legislature hereby finds and declares that the
supreme court of appeals of West Virginia has held that the
revenue bonds authorized under the school building authority act,
as enacted in article nine-d of chapter eighteen of this code
prior to the twentieth day of July, one thousand nine hundred
ninety-three, constituted an indebtedness of the state in
violation of section four of article ten of the Constitution of
West Virginia. The Legislature hereby further finds and declares
that this section, as well as section thirty of article fifteen
of chapter eleven of this code, have been reenacted during the
second extraordinary session of the West Virginia Legislature in
the year one thousand nine hundred ninety-three, in an attempt to
comply with said holding of the supreme court of appeals of WestVirginia. The Legislature hereby further finds and declares that
the continued construction and improvement of school building
facilities and the dedication of the consumers
sales tax pursuant
to section thirty of article fifteen of chapter eleven to finance
such construction and improvement are for the use and benefit of
the state, its counties, its municipalities, and its other
political subdivisions, and such construction and improvement
serves the vital public purpose of providing for a thorough and
efficient system of free schools in this state. The Legislature
hereby further finds and declares that it intends, through the
reenactment of this section and section thirty of article fifteen
of chapter eleven of this code, to dedicate a source of state
revenue to a special fund for the purpose of paying the debt
service on bonds and refunding bonds issued subsequent to the
first day of January, one thousand nine hundred ninety-four, the
proceeds of which will be utilized for the construction and
improvement of school building facilities. The Legislature
hereby further finds and declares that it intends, through the
reenactment of this section and section thirty of article fifteen
of chapter eleven of this code, to comply with the provisions of
section four of article ten, section six of article ten, section
six-a of article ten, and section one of article twelve of the
Constitution of West Virginia.
§18-9D-8. Issuance of revenue bonds; use of proceeds; bonds
exempt from taxation.
The maximum aggregate face value of bonds that may be issuedby the authority, for which the moneys in the "School Building
Debt Service Fund" are to be pledged, is one hundred eighty-five
million dollars. The issuance of revenue bonds under the
provisions of this article shall be authorized from time to time
by resolution or resolutions of the school building authority,
which shall set forth the proposed projects and provide for the
issuance of bonds in amounts sufficient, when sold as hereinafter
provided, to provide moneys considered sufficient by the
authority to pay such costs, less the amounts of any other funds
available for said costs or from any appropriation, grant or gift
therefor:
Provided, That bond issues from which bond revenues
are to be distributed in accordance with section fifteen of this
article shall not be required to set forth the proposed projects
in the resolution. Such resolution shall prescribe the rights
and duties of the bondholders and the school building authority,
and for such purpose may prescribe the form of the trust
agreement hereinafter referred to. The bonds may be issued from
time to time, in such amounts, shall be of such series, bear such
date or dates, mature at such time or times not exceeding forty
years from their respective dates, bear interest at such rate or
rates; be in such denominations; be in such form, either coupon
or registered, carrying such registration, exchangeability and
interchangeability privileges; be payable in such medium of
payment and at such place or places within or without the state;
be subject to such terms of redemption at such prices not
exceeding one hundred five percent of the principal amountthereof; and be entitled to such priorities on the revenues paid
into the
school building authority capital improvements fund
pledged for repayment of the bonds as may be provided in the
resolution authorizing the issuance of the bonds or in any trust
agreement made in connection therewith. The bonds shall be
signed by the governor, and by the president or vice president of
the authority, under the great seal of the state, attested by the
secretary of state, and the coupons attached thereto shall bear
the facsimile signature of the president or vice president of
the authority. In case any of the officers whose signatures
appear on the bonds or coupons cease to be such officers before
the delivery of such bonds, such signatures shall nevertheless be
valid and sufficient for all purposes the same as if such
officers had remained in office until such delivery. Such
revenue bonds shall be sold in such manner as the authority may
determine to be for the best interests of the state.
Any pledge of revenues for such revenue bonds made by the
school building authority shall be valid and binding between the
parties from the time the pledge is made; and the revenues so
pledged shall immediately be subject to the lien of such pledge
without any further physical delivery thereof or further act.
The lien of such pledge shall be valid and binding against all
parties having claims of any kind in tort, contract or otherwise,
irrespective of whether such parties have notice of the lien of
such pledge, and such pledge shall be a prior and superior charge
over any other use of such revenues so pledged.
The proceeds of such bonds shall be used solely for the
purpose or purposes as may be generally or specifically set forth
in the resolution authorizing those bonds and shall be disbursed
in such manner and with such restrictions, if any, as the
authority may provide in the resolution authorizing the issuance
of such bonds or in the trust agreement hereinafter referred to
securing the same. If the proceeds of such bonds, by error in
calculations or otherwise, shall be less than the cost of any
projects specifically set forth in the resolution, additional
bonds may in like manner be issued to provide the amount of the
deficiency; and unless otherwise provided for in the resolution
or trust agreement hereinafter mentioned, such additional bonds
shall be considered to be of the same issue, and shall be
entitled to payment from the same fund, without preference or
priority, as the bonds before issued for such projects. If the
proceeds of bonds issued for such projects exceed the cost
thereof, the surplus may be used for such other projects as the
school building authority may determine or in such other manner
as the resolution authorizing such bonds may provide. Prior to
the preparation of definitive bonds, the authority may, under
like restrictions, issue temporary bonds with or without coupons,
exchangeable for definitive bonds upon the issuance of such
definitive bonds.
After the issuance of any of such revenue bonds, the
revenues pledged therefor shall not be reduced as long as any of
such revenue bonds are outstanding and unpaid except under suchterms, provisions and conditions as shall be contained in the
resolution, trust agreement or other proceedings under which such
revenue bonds were issued.
Such revenue bonds and the revenue refunding bonds, and
bonds issued for combined purposes shall, together with the
interest thereon, be exempt from all taxation by the state of
West Virginia, or by any county, school district, municipality or
political subdivision thereof.
To meet the operational costs of the school building
authority, the school building authority may transfer to a
special revenue account in the state treasury interest on any
debt service reserve funds created within any resolution
authorizing the issue of bonds or any trust agreement made in
connection therewith, for expenditure in accordance with
legislative appropriation or allocation of appropriation.
§18-9D-13. Sinking fund for payment of bonds.
(a) From the school building capital improvement fund the
school building authority shall make periodic payments in an
amount sufficient to meet the requirements of any issue of bonds
sold under the provisions of this article
prior to the first day
of January, one thousand nine hundred ninety-four, or for
refunding bonds issued prior to that date as may be specified in
the resolution of the authority authorizing the issue thereof and
in any trust agreement entered into in connection therewith. The
payments so made shall be placed as specified in such resolution
of or trust agreement in a special sinking fund which is herebypledged to and charged with the payment of the principal of the
bonds of such issue and the interest thereon, and to the
redemption or repurchase of such bonds, such sinking fund to be
a fund for all bonds of such issue without distinction or
priority of one over another, except as may be provided in the
resolution authorizing such issue of bonds. The moneys in the
special sinking fund, less such reserve for payment of principal
and interest and redemption premium, if any, as may be required
by the resolution of the school building authority, authorizing
the issue
and or any trust agreement made in connection
therewith, may be used for the redemption of any of the
outstanding bonds payable from such fund which by their terms are
then redeemable, or for the purchase of bonds at the market
price, but at not exceeding the price, if any, at which such
bonds shall in the same year be redeemable; and all bonds
redeemed or purchased shall forthwith be canceled and shall not
again be issued.
(b) From the school building debt service fund, the
authority shall make periodic payments in an amount sufficient to
meet the requirements of any issue of bonds sold under the
provisions of this article on or after the first day of January,
one thousand nine hundred ninety-four, and for which the
authority has pledged revenues in such fund for the payment of
such bonds, as may be specified in the resolution of the
authority authorizing the issue thereof or in any trust agreement
entered into in connection therewith. The payments so made shallbe placed as specified in the resolution or trust agreement in a
special sinking fund which is hereby pledged to and charged with
the payment of the principal of the bonds of the issue and the
interest thereon, and to the redemption or repurchase of the
bonds, the sinking fund to be a fund for all bonds of the
particular issue without distinction or priority of one over
another, except as may be provided in the resolution authorizing
the issuance of the bonds. The moneys in the special sinking
fund, less the reserve for payment of principal and interest and
redemption premium, if any, as may be required by the resolution
of the school building authority, authorizing the issue or any
trust agreement made in connection therewith, may be used for
redemption of any of the outstanding bonds payable from the fund
which by their terms are then redeemable, or for the purchase of
bonds at the market price, but not exceeding the price, if any,
at which such bonds shall in the same year be redeemable; and all
bonds redeemed or purchased shall forthwith be canceled and shall
not again be issued.
§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
for the construction and maintenance 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 eachfacilities 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 The increase in local share 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 capital improvements fund or the
school building debt service fund are such increase in local
share is pledged as security; and (3) any other moneys received
by the authority 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.
Fifty percent of the remaining available funds shall be
allocated and distributed to each county board on the basis of
its net enrollment as defined in section two, article nine-a of
this chapter:
Provided, That such moneys shall not be
distributed to any county board whose region does not have an
approved region-wide facilities plan or to any county board that
is not prepared to commence expenditures of such funds during the
fiscal year in which the moneys are distributed:
Provided,
however, That any moneys allocated to a county board and notdistributed to that county board shall be deposited in an account
to the credit of that county board, such principal amount to
remain to the credit of and available to the county board for a
period of three years. Any moneys which are unexpended after a
three-year period shall be redistributed on the basis of net
enrollment to those county boards then eligible for the receipt
of net enrollment distributions in that fiscal year.
The remaining fifty percent of moneys available for
distribution shall be allocated and expended on the basis of
need and efficient use of resources, such basis to be determined
by the authority in accordance with the provisions of section
sixteen of this article.
No local matching funds shall be required under the
provisions of this subsection, and any county board may use the
state moneys provided herein in conjunction with local funds
derived from bonding or other source. Any county board may
dedicate any allocations of state moneys pursuant to this
subsection to the payment of local bonds used for purposes
encompassed in an approved facilities plan or for the payment of
bonds that are issued by the authority for the benefit of that
county that are in addition to the bond moneys distributed in
accordance with this subsection.
Moneys made available pursuant to this subsection that shall
be expended on projects that benefit more than one district shall
be apportioned among the districts in accordance with the formula
encompassed in that portion of the facilities plan that addressesthe project designed to benefit more than one district.
(c) To encourage regional educational service agencies and
county boards to proceed promptly with facilities planning and to
prepare for the expenditure of any state moneys derived from the
sources described in subsection (b) of this section, any county
board failing to expend money within three years of the
allocation thereto shall forfeit such allocation and thereafter
shall be ineligible for further net enrollment or other
allocations pursuant to subsection (b) until the county board is
ready to expend funds in accordance with an approved facilities
plan. Any amount so forfeited shall be added to the total funds
available for allocation and distribution in the next ensuing
fiscal year.
(d) Distribution to the county boards may be in a lump sum
or in accordance with a schedule of payments adopted by the
authority pursuant to such guidelines as it shall adopt.
NOTE: The purpose of this bill is to dedicate a revenue
source for the payment of debt service on bonds issued by the
School Building Authority and to create a special dedicated fund
into which the revenue is to be deposited. The bill also limits
the total amount of bonds which may be issued.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.