ENROLLED
COMMITTEE SUBSTITUTE
FOR
H. B. 2002
(By Delegate Kiss)
[Passed April 10, 1993, in effect from passage.]
AN ACT to repeal section seventeen, article nine-d, chapter
eighteen of the code of West Virginia, one thousand nine
hundred thirty-one, as amended; to amend and reenact section
eight, article six, chapter five of said code; and to amend
and reenact sections three, five, eight, nine, thirteen,
fifteen and sixteen, article nine-d, chapter eighteen of
said code, all relating to bonding; authorizing state
building commission to issue stated amount of financing and
refinancing bonds for specified purposes; addressing powers
and duties of school building authority; requiring attorney
general be used for litigation matters; authorizing use of
other professionals; authorizing emergency funds in
accordance with authority guidelines; providing for
individual higher education savings plans, tax treatment
thereof and issuance of revenue bonds therefor; providing
for disbursement of bond proceeds in accordance with
resolution or trust agreement; deleting requirement that
such proceeds and payments to sinking fund be deposited in
state treasury; authorizing transfer of interest on debt
service reserve funds to state treasury for authority's
operational costs; authorizing deposit of county's net
enrollment moneys to county's credit for three years rather
than redistribution; acknowledging districts' comprehensive
facilities plans; and providing that priority list of
region-wide plan is one criteria rather than the basis for
determining expenditure of funds.
Be it enacted by the Legislature of West Virginia:
That section seventeen, article nine-d, chapter eighteen of
the code of West Virginia, one thousand nine hundred thirty-one,
as amended, be repealed; that section eight, article six, chapter
five of said code be amended and reenacted; and that sections
three, five, eight, nine, thirteen, fifteen and sixteen, article
nine-d, chapter eighteen of said code be amended and reenacted,
all to read as follows:
CHAPTER 5. GENERAL POWERS AND AUTHORITY OF THE GOVERNOR,
SECRETARY OF STATE AND ATTORNEY GENERAL; BOARD
OF PUBLIC WORKS; MISCELLANEOUS AGENCIES, COMMISSIONS,
OFFICES, PROGRAMS, ETC.
ARTICLE 6. STATE BUILDING COMMISSION.
§5-6-8. Commission empowered to issue state building revenue
bonds after legislative authorization; form and
requirements for bonds; procedure for issuance;
temporary bonds; funds, grants and gifts.
(a) The commission is hereby empowered to raise the cost of
a project, as defined in this article, by the issuance of state
building revenue bonds of the state, the principal of andinterest on which bonds shall be payable solely from the special
fund herein provided for such payment. Subject to the
proceedings pursuant to which any bonds outstanding were
authorized and issued pursuant to this article, the commission
shall pledge the moneys in such special fund, except such part of
the proceeds of sale of any bonds to be used to pay the cost of
a project, for the payment of the principal of and interest on
bonds issued pursuant to this article, such pledge to apply
equally and ratably to separate series of bonds or upon such
priorities as the commission shall determine. Such bonds shall
be authorized by resolution of the commission which shall recite
an estimate by the commission of such cost, and shall provide for
the issuance of bonds in an amount sufficient, when sold as
hereinafter provided, to produce such cost, less the amount of
any funds, grant or grants, gift or gifts, contribution or
contributions received, or in the opinion of the commission
expected to be received, from the United States of America or
from any other source. The acceptance by the commission of any
and all such funds, grants, gifts and contributions, whether in
money or in land, labor or materials, is hereby expressly
authorized. All such bonds shall have and are hereby declared to
have all the qualities of negotiable instruments. Such bonds
shall bear interest at not more than twelve percent per annum,
payable semiannually, and shall mature in not more than forty
years from their date or dates, and may be made redeemable at the
option of the state, to be exercised by the commission, at such
price and under such terms and conditions, all as the commission
may fix prior to the issuance of such bonds. The commissionshall determine the form of such bonds, including coupons, if
any, to be attached thereto to evidence the right of interest
payments, which bonds shall be signed by the chairman and
secretary of the commission, under the great seal of the state,
attested by the secretary of state, and the coupons, if any,
attached thereto shall bear the facsimile signature of the
chairman of the commission. In case any of the officers whose
signatures appear on the bonds or coupons issued as hereinbefore
authorized shall 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 they had remained in
office until such delivery. The commission shall fix the
denominations of such bonds, the principal and interest of which
shall be payable at the office of the treasurer of the state of
West Virginia, at the capitol of the state, or, at the option of
the holder, at some bank or trust company within or without the
state of West Virginia to be named in the bonds, in such medium
as may be determined by the commission. The bonds and interest
thereon shall be exempt from taxation by the state of West
Virginia, or any county or municipality therein. The commission
may provide for the registration of such bonds in the name of the
owners as to principal alone, and as to both principal and
interest under such terms and conditions as the commission may
determine, and shall sell such bonds in such manner as it may
determine to be for the best interest of the state, taking into
consideration the financial responsibility of the purchaser, and
the terms and conditions of the purchase, and especially the
availability of the proceeds of the bonds when required forpayment of the cost of the project, such sale to be made at a
price not lower than a price which, computed upon standard tables
of bond values, will show a net return of not more than thirteen
percent per annum to the purchaser upon the amount paid therefor.
The proceeds of such bonds shall be used solely for the payment
of the cost of the project for which bonds were issued, and shall
be deposited and checked out as provided by section five of this
article, and under such further restrictions, if any, as the
commission may provide. If the proceeds of bonds issued for a
project or a specific group of projects shall exceed the cost
thereof, the surplus shall be paid into the fund hereinafter
provided for payment of the principal and interest of such bonds.
Such fund may be used for the purchase of any of the outstanding
bonds payable from such fund 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.
Prior to the preparation of definitive bonds, the commission may,
under like restrictions, issue temporary bonds with or without
coupons, exchangeable for definitive bonds upon the issuance of
the latter. Notwithstanding the provisions of sections nine and
ten, article six, chapter twelve of this code, revenue bonds
issued under the authority herein granted shall be eligible as
investments for the workers' compensation fund, teachers
retirement fund, division of public safety death, disability and
retirement fund, West Virginia public employees retirement system
and as security for the deposit of all public funds. Such
revenue bonds may be issued without any other proceedings or thehappening of any other conditions or things than those
proceedings, conditions and things which are specified and
required by this article, or by the constitution of the state.
For all projects authorized under the provisions of this
article other than projects to be leased by the commission to the
regional jail and correctional facilities authority, the
aggregate amount of all issues of bonds outstanding at one time
shall not exceed sixty-two million five hundred thousand dollars
including the renegotiation, reissuance or refinancing of any
such bonds, and no such project in connection with which bonds
are to be issued shall be initiated by the commission unless and
until the Legislature, through enactment of general law, approves
the purpose, the amount of bonds to be issued, and the total cost
for such project, construction or acquisition.
For projects which are to be leased by the commission to the
regional jail and correctional facilities authority, legislative
approval pursuant to the provisions of this section shall not be
required if such projects have otherwise been approved by the
Legislature in accordance with the provisions of subsection (m),
section five, article twenty, chapter thirty-one of this code,
and the limitations on the amount of revenue bonds which may be
issued by the commission and the project costs shall be governed
by the terms of any concurrent resolution adopted pursuant to
said subsection.
(b) Notwithstanding anything in this article to the
contrary, the commission is authorized to issue bonds or
otherwise finance or refinance the following projects, including
the costs of issuance and sale of the bonds or financing, allnecessary financial and legal expenses and creation of debt
service reserve funds, in an amount not to exceed twenty-one
million dollars:
(1) Any or all of the state office buildings and adjoining
real property being lease-purchased in Beckley, Clarksburg,
Fairmont, Huntington and Parkersburg:
Provided,
That no such
building and adjoining real property shall be financed or
refinanced unless such financing or refinancing is at an interest
rate at one and one-half percent below the interest rate being
paid by the current owner under the lease-purchase agreement;
(2) A facility to be obtained or constructed by the
commission and leased to the division of motor vehicles; and
(3) Property and buildings needed for state spending units
in an amount not to exceed three million dollars.
CHAPTER 18. EDUCATION
ARTICLE 9D. SCHOOL BUILDING AUTHORITY.
§18-9D-3. Powers 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, 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 such 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 itsaffairs;
(6) To use the facilities, office, assistants and employees
of the attorney general in all legal matters relating to
litigation involving the authority;
(7) Except as limited in subdivision (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;
(8) 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;
(9) 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;
(10) To acquire by purchase, eminent domain or otherwise all
real property or interests therein necessary or convenient to
accomplish the purposes of this article;
(11) To require proper maintenance and insurance of any
project authorized hereunder;
(12) 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;
(13) To acquire land, buildings and capital improvements to
existing school buildings and property, by lease from a private
or public lessor for a term not to exceed twenty-five years, withor without an option to purchase pursuant to an investment
contract with said lessor, for use as public school facilities on
such terms and conditions as may be determined to be in the best
interests of the authority and consistent with the purposes of
this article;
(14) 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 such gift, grant, contribution, bequest or
endowment;
(15) To enter on any lands and premises for the purpose of
making surveys, soundings and examinations;
(16) 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
therein, 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;
(17) To provide funds on an emergency basis to repair or
replace property damaged by fire, flood, wind, storm, earthquake
or other natural occurrence, such funds to be made available in
accordance with guidelines of the school building authority; and
(18) To do all things necessary or convenient to carry out
the powers given 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 ofthis 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 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 purchasedpursuant 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 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 notfully 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 thedisclosure 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-8. Issuance of revenue bonds; use of proceeds; bonds
exempt from taxation.
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, andfor 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 amount
thereof; and be entitled to such priorities on the revenues paid
into the school building authority capital improvements fund 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 theschool 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 tothe 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 such
terms, 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-9. Issuance of revenue refunding bonds; use of moneys;
power to enter into escrow agreements; call for
redemption.
The issuance of revenue refunding bonds under the provisions
of this article shall be authorized by resolution of the school
building authority and shall otherwise be subject to thelimitations, conditions and provisions of other revenue bonds
under this article. Such revenue refunding bonds may be issued
in an amount at the option of the authority sufficient to pay
either in part or in full, together with interest earned on the
investment of the proceeds thereof, whether or not at the time of
the issuance of the revenue refunding bonds the hereafter
mentioned bonds are payable or callable for optional redemption:
(1) The principal of such outstanding bonds; (2) the redemption
premium, if any, on such outstanding bonds if they are to be
redeemed prior to maturity; (3) the interest due and payable on
such outstanding bonds to and including the maturity date thereof
or the first date upon which said outstanding bonds are to be
redeemed, including any interest theretofore accrued and unpaid;
and (4) all expenses of the issuance and sale of said revenue
refunding bonds, including all necessary financial and legal
expenses, and also including the creation of initial debt service
reserve funds. Any existing moneys pledged with respect to the
outstanding bonds may be used for any or all of the purposes
stated in (1), (2), (3) and (4) above or may be deposited in a
sinking fund or reserve fund or other funds for the issue of
bonds which have been issued wholly or in part for the purpose of
such refunding. Such amount of the proceeds of the revenue
refunding bonds as shall be sufficient for the payment of the
principal, interest and redemption premium, if any, on such
outstanding bonds which will not be immediately due and payable
shall be deposited in trust, for the sole purpose of making such
payments, in a banking institution chosen by the authority and in
accordance with any provisions which may be included in theresolution authorizing the issuance of such bonds or in the trust
agreement securing the same. Any of the moneys so deposited in
trust may, prior to the date on which such moneys will be needed
for the payment of principal of, interest and redemption premium,
if any, on such outstanding bonds, be invested and reinvested as
determined by the authority, in whole or in part: (a) In direct
obligations issued by the United States of America or one of its
agencies or in direct obligations of the state of West Virginia;
(b) in obligations unconditionally guaranteed by the United
States of America as to principal and interest; or (c) in
certificates of deposit of a banking corporation or association
which is a member of the federal deposit insurance corporation,
or successor; but any such certificates of deposit must be fully
secured as to both principal and interest by pledged collateral
consisting of direct obligations of or obligations guaranteed by
the United States of America, or direct obligations of the state
of West Virginia, having a market value, excluding accrued
interest, at all times at least equal to the amount of the
principal of and accrued interest on such certificates of
deposit. Any such investments must mature, or be payable in
advance of maturity at the option of the holder, and must bear
interest in such manner as to provide funds which, together with
uninvested money, will be sufficient to pay when due or called
for redemption the bonds refunded, together with interest accrued
and to accrue thereon and redemption premiums, if any, and such
refunding bonds' proceeds or obligations so purchased therewith
shall be deposited in escrow and held in trust for the payment
and redemption of the bonds refunded:
Provided,
That if interestearned by any investment in such escrow is shown to be in excess
of the amounts required from time to time for the payment of
interest on and principal of the refunded bonds, including
applicable redemption premium, then such excess may be withdrawn
from escrow and disbursed in such manner as the authority shall
by resolution determine, subject to the provisions of section
five of this article. Any moneys in the sinking or reserve funds
or other funds maintained for the outstanding bonds to be
refunded may be applied in the same manner and for the same
purpose as are the net proceeds of refunding bonds or may be
deposited in the special fund or any reserve funds established
for account of the refunding bonds.
The authority to issue revenue refunding bonds shall be in
addition to any other authority to refund bonds conferred by law.
The school building authority shall have power to enter into
such escrow agreements with such bank or banks and to insert
therein such protective and other covenants and provisions as it
may consider necessary to permit the carrying out of the
provisions of this article and to insure the prompt payment of
the principal of and interest and redemption premiums on the
revenue bonds refunded.
Where any revenue bonds to be refunded are not to be
surrendered for exchange or payment and are not to be paid at
maturity with escrowed obligations, but are to be paid from such
source prior to maturity pursuant to call for redemption
exercised under a right of redemption reserved in such revenue
bonds, the authority shall, prior to the issuance of the
refunding bonds, determine which redemption date or dates shallbe used, call such revenue bonds for redemption and provide for
the giving of the notice of redemption required by the
proceedings authorizing such revenue bonds. Where such notice is
to be given at a time subsequent to the issuance of the refunding
bonds, the necessary notices may be deposited with the state
treasurer or the bank acting as escrow agent of the refunding
bond proceeds and the escrow agent appropriately instructed and
authorized to give the required notices at the prescribed time or
times. If any officer of the public body signing any such notice
shall no longer be in office at the time of the utilization of
the notice, the notice shall nevertheless be valid and effective
for its intended purpose.
§18-9D-13. Sinking fund for payment of bonds.
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, 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 trust agreement in a special sinking fund which is hereby
pledged 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 principaland interest and redemption premium, if any, as may be required
by the resolution of the school building authority, authorizing
the issue and 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.
§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 each
facilities 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)
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 such
increase in local share is pledged as security; and (3) any other
moneys received by the authority may be allocated and may beexpended 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 not
distributed 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 fundsderived 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 addresses
the 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.
§18-9D-16. Facilities 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, each regional educational service
agency created pursuant to section twenty-six, article two of
this chapter shall submit a region-wide facilities plan that
addresses the facilities needs of each district within the region
pursuant to such guidelines as shall be adopted by the authority
in accordance with this section and in accordance with each
district's comprehensive school facilities plan approved by the
state board of education. Any project receiving funding shall be
in furtherance of such approved region-wide facilities plan.
(b) To assure efficiency and productivity in the project
approval process, the region-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 regional educational service agency, including
one person from each county within the region, 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.
(c) The guidelines 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 aredeemed by the authority to be important reflections of how the
project will further the overall goals of the authority.
The guidelines regarding submission of the 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
facilities plan shall be accompanied by a synopsis of all
comments received and a formal comment by each county board
included in the region. The guidelines regarding project
specifications may include such matters as energy efficiency,
preferred siting, construction materials, maintenance plans or
any other matter related to how the capital improvement project
is to proceed. The guidelines pertaining to quality education
shall require that a facilities plan address how the current
facilities do not meet and 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) Multi-county 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 such as year-round schools andcommunity-based programs; and
(7) Adequate space for projected student enrollments.
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.
(d) Each plan shall prioritize all the projects both within
a county and among the counties, which 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, each regional educational service agency shall make
determinations in accordance with the objective criteria
formulated by the school building authority.
(e) Each 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 goal stated in this section
and any guidelines adopted hereunder, as well as the overall
success of any project as it relates to the facilities plan of
its region and the overall goals of the authority.
(f) The authority may adopt guidelines for requiring that a
regional educational service agency modify, update, supplement or
otherwise submit changes or additions to an approved plan and
shall provide reasonable notification and sufficient time for
such change or addition.