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H0326...............................................by REVENUE AND TAXATION SCHOOL BOND ASSISTANCE FUND - Adds to and amends existing law relating to public school endowment funds to provide for distributions to school districts for school bond assistance; to provide a source of funds; to provide for appropriation and distribution by the State Board of Education to help school districts pay the costs associated with school bonds; to provide for return of unused moneys; to provide regions; to provide that boards of trustees of school districts that have passed school bonds may apply for moneys; to provide for establishment of procedures for application and criteria for denial and approval by the State Board of Education; to provide that criteria shall be reviewed by the Legislature; to provide for warrants; to provide for use of moneys by school districts; and to provide for payment of moneys to school districts for school bond assistance. 03/02 House intro - 1st rdg - to printing 03/03 Rpt prt - to Rev/Tax
H0326|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 326 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO PUBLIC SCHOOL ENDOWMENT FUNDS; AMENDING SECTION 33-902A, IDAHO 3 CODE, AS ADDED BY SECTION 8, CHAPTER 256, LAWS OF 1998, TO PROVIDE FOR 4 DISTRIBUTIONS TO SCHOOL DISTRICTS FOR SCHOOL BOND ASSISTANCE; AMENDING 5 CHAPTER 9, TITLE 33, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 33-902B, 6 IDAHO CODE, TO PROVIDE THAT THE FIRST TWENTY PERCENT OF THE MONEYS IN THE 7 PUBLIC SCHOOL EARNINGS RESERVE FUND SHALL BE APPROPRIATED BY THE LEGISLA- 8 TURE AND DISTRIBUTED BY THE STATE BOARD OF EDUCATION TO ASSIST SCHOOL DIS- 9 TRICTS PAY THE COSTS ASSOCIATED WITH SCHOOL BONDS, TO PROVIDE FOR RETURN 10 OF UNUSED MONEYS, TO PROVIDE REGIONS, TO PROVIDE THAT BOARDS OF TRUSTEES 11 OF SCHOOL DISTRICTS THAT HAVE PASSED SCHOOL BONDS MAY APPLY FOR MONEYS, TO 12 PROVIDE FOR ESTABLISHMENT OF PROCEDURES FOR APPLICATION AND CRITERIA FOR 13 DENIAL AND APPROVAL OF APPLICATIONS BY THE STATE BOARD OF EDUCATION, TO 14 PROVIDE THAT CRITERIA SHALL BE REVIEWED BY THE LEGISLATURE, TO PROVIDE FOR 15 WARRANTS, TO PROVIDE FOR USE OF MONEYS BY SCHOOL DISTRICTS, TO PROVIDE 16 LIBERAL CONSTRUCTION AND TO PROVIDE APPLICATION; AMENDING SECTION 57-723A, 17 IDAHO CODE, AS ADDED BY SECTION 40, CHAPTER 256, LAWS OF 1998, TO PROVIDE 18 FOR PAYMENT OF MONEYS TO SCHOOL DISTRICTS FOR SCHOOL BOND ASSISTANCE; AND 19 PROVIDING AN EFFECTIVE DATE. 20 Be It Enacted by the Legislature of the State of Idaho: 21 SECTION 1. That Section 33-902A, Idaho Code, as added by Section 8, Chap- 22 ter 256, Laws of 1998, be, and the same is hereby amended to read as follows: 23 33-902A. PUBLIC SCHOOL EARNINGS RESERVE FUND. (1) There is established in 24 the state treasury the public school earnings reserve fund. The fund shall be 25 managed and invested by the endowment fund investment board according to law 26 and the policies established by the state board of land commissioners. The 27 public school earnings reserve fund shall consist of the following: 28 (a) All earnings of the public school permanent endowment fund; 29 (b) Proceeds of the sale of timber on public school endowment lands; 30 (c) Proceeds of leases of public school endowment lands; 31 (d) Proceeds of interest charged upon deferred payments on public school 32 endowment lands or timber on those lands; 33 (e) Earnings on contracts for the sale of timber and the sale of lands 34 related to the public school endowment; and 35 (f) All other proceeds received from the use of public school endowment 36 lands and not otherwise designated for deposit in the public school perma- 37 nent endowment fund. 38 (2) Moneys shall be distributed out of the public school earnings reserve 39 fund only to support the beneficiaries of the public school endowment, includ- 40 ing distributions by the state board of land commissioners to the public 41 school permanent endowment fund and the public school income fund , and 42 distributions to school districts for school bond assistance ; provided, 43 that funds shall not be otherwise appropriated by the legislature 2 1 from the public school earnings reserve fund except to pay for administrative 2 costs incurred managing the assets of the public school endowment including, 3 but not limited to, real property and monetary assets. 4 SECTION 2. That Chapter 9, Title 33, Idaho Code, be, and the same is 5 hereby amended by the addition thereto of a NEW SECTION , to be 6 known and designated as Section 33-902B, Idaho Code, and to read as follows: 7 33-902B. PUBLIC SCHOOL EARNINGS RESERVE FUND -- SCHOOL BOND ASSISTANCE. 8 (1) Each fiscal year, the first twenty percent (20%) of the moneys in the pub- 9 lic school earnings reserve fund shall be appropriated by the legislature and 10 distributed by the state board of education to help school districts that have 11 passed school bonds pursuant to chapter 11, title 33, Idaho Code, pay costs 12 associated with those bonds including, but not limited to, administrative 13 costs and interest. At the end of each fiscal year, any portion of the twenty 14 percent (20%) not expended as provided in this subsection shall be returned to 15 the public school earnings reserve fund. 16 (2) In order to distribute the moneys described in subsection (1) of this 17 section to assist school districts pay costs associated with school bonds, the 18 state shall be divided into seven (7) regions of equal population, each one 19 consisting of five (5) legislative districts as follows: 20 (a) Region one. Legislative districts one (1) through five (5); 21 (b) Region two. Legislative districts six (6) through ten (10); 22 (c) Region three. Legislative districts eleven (11) through fifteen (15); 23 (d) Region four. Legislative districts sixteen (16) through twenty (20); 24 (e) Region five. Legislative districts twenty-one (21) through twenty- 25 five (25); 26 (f) Region six. Legislative districts twenty-six (26) through thirty 27 (30); 28 (g) Region seven. Legislative districts thirty-one (31) through thirty- 29 five (35). 30 (3) Annually, each region shall be allotted an initial amount equal to 31 one-seventh (1/7) of the first twenty percent (20%) of the moneys in the pub- 32 lic school earnings reserve fund. Each school district that has passed a 33 school bond in that year may apply to receive assistance in an amount not to 34 exceed twenty percent (20%) of the total bond amount. However, in no case 35 shall the amount paid to a school district for bond assistance exceed seven 36 hundred fifty thousand dollars ($750,000) in a single year or exceed fifty 37 percent (50%) of the amount allotted to that region for school bond assis- 38 tance. If school districts within a region do not apply for all of the initial 39 amount allotted to that region, the remainder shall become available for dis- 40 tribution to other regions. Distributions shall be based on applications sub- 41 mitted pursuant to this section and the criteria and procedures developed by 42 the state board of education. Applications shall be evaluated by the state 43 board of education in the order they are received and awards shall be made to 44 successful applicants in that same order. 45 (4) The board of trustees of any school district that has passed a school 46 bond may apply to the state board of education for school bond assistance. The 47 state board of education shall establish equitable criteria for distribution 48 of moneys for school bond assistance and shall provide procedures for applica- 49 tion, denial and approval of distributions pursuant to this section. Criteria 50 developed by the state board of education shall be reviewed by the legisla- 51 ture. 52 (5) All distributions for bond assistance shall be paid directly to the 53 school district in warrants drawn by the state controller upon presentation of 3 1 proper vouchers from the state board of education. Pending distribution out of 2 the public school earnings reserve fund, the moneys in the fund shall be 3 invested as provided by law for earnings of the public school endowment. 4 (6) Distributions for school bond assistance received by a school dis- 5 trict may be used by the school district only to reduce costs associated with 6 the bond issued including, but not limited to, administrative costs and inter- 7 est. 8 (7) This section authorizes the issuance of warrants and shall be liber- 9 ally construed to accomplish the purpose of assisting school districts to pay 10 the costs associated with bond issues. Any restrictions, limitations or regu- 11 lations relative to the issuance of warrants contained in any other act shall 12 not apply to warrants issued under this section. Any act inconsistent with 13 this section shall be deemed modified to conform with the provisions of this 14 section for the purposes of this section only. 15 (8) This section applies only to school bonds issued after the effective 16 date of this section. 17 SECTION 3. That Section 57-723A, Idaho Code, as added by Section 40, 18 Chapter 256, Laws of 1998, be, and the same is hereby amended to read as fol- 19 lows: 20 57-723A. DEPOSIT AND DISTRIBUTION OF EARNINGS RESERVE FUNDS -- INCOME 21 FUNDS -- ADMINISTRATIVE COSTS. (1) As directed by the state board of land com- 22 missioners, the investment board shall distribute the earnings from the 23 investments or securities in accordance with this act and the laws governing 24 the respective endowment funds. Earnings from the investment of permanent 25 endowment funds related to state land grants shall be deposited into each 26 endowment's respective earnings reserve fund for distribution as provided in 27 this section. 28 (2) At least annually, the state board of land commissioners shall dis- 29 tribute moneys constituting earnings reserve funds, in excess of the amount 30 necessary to pay administrative costs, to the income funds of the respective 31 endowments, to each endowment's respective permanent endowment fund or main- 32 tained as a free fund balance in the earnings reserve funds, in amounts to be 33 determined by the state board of land commissioners. 34 (3) Moneys in the earnings reserve funds shall be available for appropri- 35 ation by the legislature to pay for administrative costs incurred managing the 36 assets of the endowments including, but not limited to, real property and mon- 37 etary assets. 38 (4) Each fiscal year, the first twenty percent (20%) of the moneys 39 in the public school earnings reserve fund shall be available for school bond 40 assistance as provided in section 33-902B, Idaho Code. 41 SECTION 4. This act shall be in full force and effect on and after July 42 1, 2001, provided the governor has issued a proclamation declaring that the 43 conditions described in Section 63, Chapter 256, Laws of 1998, have been sat- 44 isfied.
STATEMENT OF PURPOSE
RS08725C3
The purpose of this legislation is to assist local school districts to
upgrade, repair or build new schools. This would be achieved by
providing from the State Public School Endowment fund, the first 20% or
$750,000.00 of a bond passed by a local school district.
FISCAL NOTE
There will be an impact to the State Public School Endowment Fund. In
the budget year 1999 this would have had close to $20,000,000.00
negative impact to that fund. This bill will commit 20% of the State
Public School Endowment Fund after July 1, 2001 to a School Bond
Assistance Fund. It is estimated that in the year 2001 this amount will
be between 20 to 25 million dollars.
Contact: Representative Roger Chase
332-1000
Representative Shirley Ringo
332-1000
STATEMENT OF PURPOSE/ FISCAL NOTE Bill No. R 326