H. B. 201


(By Mr. Speaker, Mr. Chambers, and Delegate Burk)
[By Request of the Executive]
[Introduced October 17, 1993; referred to the
Committee on Finance.]



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 used for 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 the payment 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 the collections 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 to each 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 in staffing, 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 for the 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 the repayment 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 West Virginia. 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 issued by 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 amount thereof; 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 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-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 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 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 shall be 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 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) 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 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 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 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.



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.