department of revenue;
technical correction
HB 2090 corrects a reference in the tax code regarding the governor appointment of the director of DOR. This bill contains a proposed strike-everything amendment to allow school districts to enter into lease agreements or lease purchase agreements for the acquisition of new school facilities, to be coordinated with the School Facilities Board.
The Students FIRST legislation, adopted by the Legislature in 1998, established a state funded school capital finance system while maintaining a school district’s ability to raise local funds through limited general obligation bonds and capital overrides. The Students FIRST program established the School Facilities Board (SFB) to develop capital standards and evaluate and monitor school capital needs and to distribute building renewal, existing deficiencies and new school construction funding. The SFB is required to inspect school buildings at least once every five years to ensure compliance with the building adequacy standards with respect to construction of new buildings and maintenance of existing buildings. Additionally, the SFB is responsible for constructing new school facilities based on school enrollment projections and building needs.
· Allows the School Facilities Board (SFB) to enter into intergovernmental agreements (IGA) with school districts for the lease, lease back, ground lease or lease-purchase of new school facilities that are determined to be needed under the current formula for the construction of new schools. The IGA can be entered into whether or not planning or construction has already begun on a new school.
· The SFB may distribute monies for leased facilities from the New School Facilities Fund if the SFB determines that it would be more appropriate to lease the facilities, instead of constructing a new school, based on enrollment projections. In addition, the IGA may require the use of local monies that supplement New School Facilities Fund monies.
· If the SFB and an eligible school district enter into an IGA, the SFB will make payments annually or semi-annually to the school district over the term of the lease, not to exceed 25 years.
· The IGA will bind the SFB to pay interest and other costs of the IGA. The SFB shall reserve the right, at the end of each fiscal year, to discontinue payments and terminate the agreement.
· The school district may pledge any amounts it receives under the IGA to the repayment of any lease-purchase agreement.
· Amounts paid to school districts for leased facilities must be separately reported to the JCCR.
· Provisions for implementation of leased facilities include:
· That the SFB, at the request of the school district, may waive one or more of the building adequacy standards.
· The lease payments must be less than or equal to the fair market value for leases of similar property within that area.
· Payments for leased facilities are not subject to the square footage calculation under the New School Facilities Fund formula.
· A lease agreement is not subject to an election.
· Leased facilities will be included in the Building Renewal Fund formula, and these monies can be used for projects on leased facilities.
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45th Legislature
Second Regular Session 2 March
25, 2002
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