HB2037 - 451R - House Bill Summary

House of Representatives

HB 2037

school facilities; liabilities in excess

Sponsors: Representative Gray

DPA	Committee on Education
X	Caucus and COW
	As Passed the House

HB 2037 requires school districts to apply to the School Facilities Board for funding for excessive and unexpected damage to school facilities or to correct unforeseen health and safety hazards rather than petitioning the county superintendent or county board of supervisors to increase the local district’s budget for such expenditures.

History

Current law allows a school district to petition the county superintendent or county board of supervisors to exceed the school district’s budget for expenses relating to:

1) The destruction of or damage to a school facility;

2) Excessive and unexpected legal expenses; or

3) Mitigation of a health or safety hazard at a school.

If the petition is allowed, the school district may incur liabilities in excess of the district’s adopted budget. The additional expenses are funded from an additional primary property tax levy within the school district.

The Students FIRST legislation, adopted in 1998, established the State Facilities Board to evaluate and monitor school capital needs and to distribute building renewal, existing deficiencies, and new construction funding. The primary responsibility to ensure that school facilities meet state standards was given to the state. However, school districts are allowed to exceed the state standards with local funding from general obligation bonds and capital overrides (secondary property tax levies that require voter approval).

HB 2037 transfers the funding responsibility to alleviate the destruction of or damage to school facilities or to mitigate any health and safety hazards at school facilities from the local school district to the State Facilities Board. The responsibility to fund excessive or unexpected legal expenses remains with the local school district.

Provisions

· Eliminates the ability of a school district to exceed the district’s budget for liabilities incurred from the destruction of or damage to school facilities or to mitigate or remove a health or safety hazard at a school.

· Allows school districts to apply to the School Facilities Board for funding from the new school facilities fund for the building or repair of school facilities necessary because of excessive or unexpected damage to a school facility or to mitigate an unforeseen health and safety hazard at a school facility.

· Allows the School Facilities Board to remove the square footage from the damaged facility from the school districts total square footage calculation for purposes of determining the district’s facility funding needs.

· Provides that the School Facilities Board may consider any insurance, building renewal monies or any other funding available to the school district when determining the amount of new school facilities monies required by the school district for excessive or unexpected facility damage or to mitigate unforeseen health and safety hazards.

The Education Committee amended the bill as follows:

· Strikes section 2 from the bill; therefore eliminating the last three bullet points discussed above.

· Creates a separate emergency deficiency correction fund administered by the School Facilities Board. The fund receives transfers from the new school facilities fund or the deficiencies correction fund. Monies in the fund are continuously appropriated and exempt from lapsing of appropriations.

· Provides that school districts with emergencies shall apply tot he school facilities board for funding. The school district’s application shall disclose any insurance or building renewal monies available to the school district to pay for the emergency.

· The School Facilities Board staff has five business days to make a recommendation for emergency funding. The School Facilities Board must decide on the staff’s recommendation at the next scheduled school facilities board meeting.

· Defines “emergency” as an immediate and serious need for materials, services or construction or unanticipated expenses in excess of the district’s adopted budget for the current fiscal year and that seriously threaten the functioning of the school district, the preservation or protection of property or public health, welfare or safety.

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45th Legislature