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S1496aa........................................................by EDUCATION SCHOOL FACILITIES - Amends and adds to existing law to require abatement of unsafe and unhealthy conditions in public school facilities; to provide a mechanism for the abatement of the unsafe and unhealthy conditions; to provide that a school district shall have the power to enter into agreements with and execute notes or other obligations payable to the Idaho State Building Authority for the financing of school facilities and to provide the effect of the notes or other obligations; to provide for certification from the school district of certain facts; to provide that moneys in the School Plant Facilities Reserve Fund may be used to repay notes; to revise for what the moneys in the School District Building Account may be utilized; to provide that it is in the public interest to allow the State Building Authority to provide school facilities; to authorize the State Building Authority to make loans to school districts for the purpose of financing any school facility; to provide clarifying language regarding state facilities; to provide that the authority shall not be required to obtain prior legislative approval for the financing of any school facility; and to provide requirements for the financing of a school facility. 02/21 Senate intro - 1st rdg - to printing 02/22 Rpt prt - to Educ 03/06 Rpt out - to 14th Ord 03/07 Ret'd to Educ 03/10 Rpt out - to 14th Ord 03/15 Rpt out amen - to engros 03/16 Rpt engros - 1st rdg - to 2nd rdg as amen 03/17 2nd rdg - to 3rd rdg as amen 03/20 3rd rdg as amen - FAILED - 13-22-0 AYES--Andreason, Burtenshaw, Cameron, Darrington, Frasure, Hawkins, Keough, Lee, Noh, Richardson, Riggs, Schroeder, Wheeler NAYS--Boatright, Branch, Bunderson, Crow, Danielson, Davis, Deide, Dunklin, Geddes, Ingram, Ipsen, King-Barrutia, McLaughlin, Parry, Risch, Sandy, Sorensen, Stegner, Stennett, Thorne, Whitworth, Williams Absent and excused--None Floor Sponsor - Riggs, Schroeder Filed with Secretary of the Senate
S1496|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature Second Regular Session - 2000IN THE SENATE SENATE BILL NO. 1496, As Amended BY EDUCATION COMMITTEE 1 AN ACT 2 RELATING TO THE PROVISION OF SCHOOL FACILITIES; AMENDING CHAPTER 16, TITLE 33, 3 IDAHO CODE, BY THE ADDITION OF A NEW SECTION 33-1613, IDAHO CODE, TO 4 REQUIRE ABATEMENT OF UNSAFE AND UNHEALTHY CONDITIONS IN PUBLIC SCHOOL 5 FACILITIES AND TO PROVIDE THE MECHANISM FOR SUCH ABATEMENT; AMENDING CHAP- 6 TER 11, TITLE 33, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 33-1126, 7 IDAHO CODE, TO PROVIDE THAT A SCHOOL DISTRICT SHALL HAVE THE POWER TO 8 ENTER INTO AGREEMENTS WITH AND EXECUTE NOTES OR OTHER OBLIGATIONS PAYABLE 9 TO THE IDAHO STATE BUILDING AUTHORITY FOR THE FINANCING OF SCHOOL FACILI- 10 TIES, TO PROVIDE THE EFFECT OF NOTES OR OTHER OBLIGATIONS AND TO PROVIDE 11 FOR CERTIFICATION FROM THE SCHOOL DISTRICT TO THE BUILDING AUTHORITY OF 12 CERTAIN FACTS; AMENDING SECTION 33-901, IDAHO CODE, TO PROVIDE THAT MONEYS 13 IN THE SCHOOL PLANT FACILITIES RESERVE FUND MAY BE USED TO REPAY NOTES OR 14 OTHER OBLIGATIONS ISSUED TO THE STATE BUILDING AUTHORITY AND TO MAKE A 15 TECHNICAL CORRECTION; AMENDING SECTION 33-905, IDAHO CODE, TO REVISE FOR 16 WHAT THE MONEYS IN THE SCHOOL DISTRICT BUILDING ACCOUNT MAY BE UTILIZED 17 AND TO MAKE A TECHNICAL CORRECTION; AMENDING SECTION 67-6402, IDAHO CODE, 18 TO FURTHER DEFINE TERMS; AMENDING SECTION 67-6404, IDAHO CODE, TO PROVIDE 19 THAT IT IS IN THE PUBLIC INTEREST TO ALLOW THE STATE BUILDING AUTHORITY TO 20 PROVIDE SCHOOL FACILITIES AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SEC- 21 TION 67-6409, IDAHO CODE, TO PROVIDE CLARIFYING LANGUAGE REGARDING A STATE 22 FACILITY AND TO AUTHORIZE THE STATE BUILDING AUTHORITY TO MAKE LOANS TO 23 SCHOOL DISTRICTS FOR THE PURPOSE OF FINANCING ANY SCHOOL FACILITY AND TO 24 MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 67-6410, IDAHO CODE, TO PRO- 25 VIDE CLARIFYING LANGUAGE REGARDING STATE FACILITIES, TO PROVIDE THAT THE 26 AUTHORITY SHALL NOT BE REQUIRED TO OBTAIN PRIOR LEGISLATIVE APPROVAL FOR 27 THE FINANCING OF ANY SCHOOL FACILITY AND TO PROVIDE REQUIREMENTS FOR THE 28 FINANCING OF A SCHOOL FACILITY; DECLARING AN EMERGENCY, PROVIDING RETROAC- 29 TIVE APPLICATION AND PROVIDING THE EFFECT ON CERTAIN LOTTERY MONEYS. 30 Be It Enacted by the Legislature of the State of Idaho: 31 SECTION 1. That Chapter 16, Title 33, Idaho Code, be, and the same is 32 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 33 ignated as Section 33-1613, Idaho Code, and to read as follows: 34 33-1613. SAFE PUBLIC SCHOOL FACILITIES REQUIRED. (1) Definition. As used 35 in this section, "public school facilities" means the physical plant of 36 improved or unimproved real property owned or operated by a school district, 37 including school buildings, administration buildings, playgrounds, athletic 38 fields, etc., used by schoolchildren or school district personnel in the nor- 39 mal course of providing a general, uniform and thorough system of public, free 40 common schools, but does not include areas, buildings or parts of buildings 41 closed from or not used in the normal course of providing a general, uniform 42 and thorough system of public, free common schools. The aspects of a safe 43 environment conducive to learning as provided by section 33-1612, Idaho Code, 2 1 that pertain to the physical plant used to provide a general, uniform and 2 thorough system of public, free common schools are hereby defined as those 3 necessary to comply with the safety and health requirements set forth in this 4 section. 5 (2) Inspection. It is the duty of the board of trustees of every school 6 district at least once in every school year to require an independent inspec- 7 tion of the district's school facilities to determine whether those school 8 facilities comply with codes addressing safety and health standards for facil- 9 ities, including electrical, plumbing, mechanical, elevator, fire safety, 10 boiler safety, life safety, structural, snow loading, and sanitary codes, 11 adopted by or pursuant to the Idaho building code advisory act, chapter 41, 12 title 39, Idaho Code, adopted by the state fire marshal, adopted by generally 13 applicable local ordinances, or adopted by rule of the state board of educa- 14 tion and applicable to school facilities. The inspection shall be done pursu- 15 ant to section 39-4130, Idaho Code, or by an independent inspector profession- 16 ally qualified to conduct inspections under the applicable code. The results 17 of the inspection shall be presented to the board of trustees for their review 18 and consideration. 19 (3) Abatement required -- Reporting. The board of trustees shall, in 20 their sole discretion, accept or reject the results of the inspection in whole 21 or in part and in so doing shall identify any unsafe or unhealthy conditions 22 in the district. The board of trustees shall require that the unsafe or 23 unhealthy conditions be abated and shall instruct the district's personnel to 24 take necessary steps to abate unsafe or unhealthy conditions. The board of 25 trustees must issue a report in the same school year in which the inspections 26 are made declaring whether any unsafe or unhealthy conditions identified have 27 not been abated. The state board of education may, by rule, provide for uni- 28 form reporting of unsafe and unhealthy conditions and for uniform reporting of 29 abatement or absence of abatement of unsafe and unhealthy conditions. 30 (4) Costs of and plan of abatement. If the school district can abate all 31 unsafe or unhealthy conditions identified with the funds available to the dis- 32 trict, it shall do so, and it need not separately account for the costs of 33 abatement nor segregate funds expended for abatement. If the school district 34 cannot abate all unsafe or unhealthy conditions identified with the funds 35 available to it, the board of trustees shall direct that a plan of abatement 36 be prepared. The plan of abatement shall provide a timetable that shall begin 37 no later than the following school year and that shall provide for abatement 38 with all deliberate speed of unsafe and unhealthy conditions identified. The 39 district shall immediately begin to implement its plan of abatement and must 40 separately account for its costs of abatement of unsafe and unhealthy condi- 41 tions and separately segregate funds for the abatement of unsafe and unhealthy 42 conditions as required by subsection (5) of this section. 43 (5) Special provisions for implementation of plan of abatement. 44 (a) Notwithstanding any other provisions of law concerning expenditure of 45 lottery moneys distributed to the school district, all lottery moneys pro- 46 vided to the school district for a school year in which the school dis- 47 trict cannot abate unsafe or unhealthy conditions identified and not 48 legally encumbered to other uses at the time and all lottery moneys for 49 following school years shall be segregated and expended exclusively for 50 abatement of unsafe and unhealthy conditions identified until all of the 51 unhealthy and unsafe conditions identified are abated, provided, if the 52 school district has obtained a loan from the Idaho state building author- 53 ity, under the provisions of section 33-1126, Idaho Code, the conditions 54 of the loan shall determine the use of the district's lottery moneys dur- 55 ing the term of the loan. 3 1 (b) If the lottery moneys referred to in paragraph (a) of this subsection 2 will, in the board of trustees' estimation, be insufficient to abate the 3 unsafe and unhealthy conditions identified, the plan of abatement shall 4 identify additional sources of funds to complete the abatement of the 5 unsafe and unhealthy conditions. The board of trustees may choose from 6 among the following sources, or from other sources of its own identifica- 7 tion, but the plan of abatement must identify sufficient sources of funds 8 for abatement. 9 (i) If the school district is not levying under chapter 8, title 10 33, Idaho Code, at the maximum levies allowed by law for levies that 11 may be imposed by a board of trustees without an election, the board 12 of trustees may increase any of those levies as allowed by law for 13 the school year following the school year in which it was unable to 14 abate unsafe or unhealthy conditions identified. 15 (ii) If the school district is levying under chapter 8, title 33, 16 Idaho Code, at the maximum levies allowed by law for levies that may 17 be imposed by the board of trustees without an election; or, if after 18 increasing those levies to the maximum levies allowed by law for 19 levies that may be imposed by the board of trustees without an elec- 20 tion, there will still be insufficient funds to abate unsafe or 21 unhealthy conditions identified, the school district, after giving 22 notice and conducting a hearing, may declare a health and safety 23 financial emergency and may then apply for a loan from the Idaho 24 state building authority as provided in section 33-1126, Idaho Code, 25 to obtain funds to abate the unsafe or unhealthy conditions identi- 26 fied. 27 (iii) Upon the declaration of a health and safety financial emer- 28 gency, which results in a reduction in force, freezing of any sala- 29 ries, or suspension of any contracts, the payments to the school dis- 30 trict under the foundation program of chapter 10, title 33, Idaho 31 Code, and in particular the staff allowance under that chapter, shall 32 not be correspondingly reduced during the duration of the financial 33 emergency to a level less than what the staff allowance would have 34 been without the reduction in force, frozen salaries or suspended 35 contracts. 36 (c) All costs of abatement for a program implementing plans of abatement 37 under subsection (5) of this section must be separately accounted for and 38 documented with regard to abatement of each unsafe or unhealthy condition 39 identified. Funds obtained under section 33-1126, Idaho Code, must be used 40 exclusively to abate unsafe or unhealthy conditions identified. Funds 41 obtained pursuant to section 33-1126, Idaho Code, in excess of funds nec- 42 essary to abate unsafe or unhealthy conditions identified must be returned 43 as provided in section 33-1126, Idaho Code. Return of these funds shall be 44 judicially enforceable as provided in section 33-1126, Idaho Code. 45 SECTION 2. That Chapter 11, Title 33, Idaho Code, be, and the same is 46 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 47 ignated as Section 33-1126, Idaho Code, and to read as follows: 48 33-1126. OBLIGATIONS PAYABLE TO IDAHO STATE BUILDING AUTHORITY. (1) Any 49 school district having declared a health and safety financial emergency as 50 described in section 33-1613, Idaho Code, shall have the power to enter into 51 agreements with, and execute notes or other obligations payable to, the Idaho 52 state building authority for the financing of any school facilities as defined 53 in the Idaho state building authority act, chapter 64, title 67, Idaho Code. 4 1 The notes or other obligations shall be authorized by a resolution of the 2 school district, shall bear such date or dates and shall mature at such times 3 as such resolution may provide, not exceeding twenty (20) years from the date 4 of issuance. The notes or other obligations shall bear interest at such rates 5 as the resolution shall provide and as shall be agreed upon with the Idaho 6 state building authority. 7 (2) Notes or other obligations issued under this section shall constitute 8 a general obligation of the school district payable from any of its lawful 9 funds. The provisions of sections 33-1103 through 33-1114, Idaho Code, shall 10 not apply to school district notes or other obligations issued under this sec- 11 tion unless the Idaho state building authority shall require compliance with 12 any or all of such provisions. 13 (3) Prior to financing any improvements to a school facility that shall 14 be health and safety improvements and which the school district proposes to 15 undertake without first obtaining the approval of the percentage of votes of 16 the school district that would be required for the issuance of bonds of the 17 school district under section 33-1103, Idaho Code, the school district shall 18 certify to the authority that the improvements shall constitute an ordinary 19 and necessary expense under section 3, article VIII, of the constitution of 20 the state of Idaho. 21 SECTION 3. That Section 33-901, Idaho Code, be, and the same is hereby 22 amended to read as follows: 23 33-901. SCHOOL PLANT FACILITIES RESERVE FUND. The board of trustees of 24 any school district may create and establish a school plant facilities reserve 25 fund by resolution adopted at any regular or special meeting of the board. All 26 moneys for said fund accruing from taxes levied under section 33-804, Idaho 27 Code, together with interest accruing from the investment of any moneys in 28 the fund and any moneys allowed for depreciation of school plant facilities as 29 are appropriated from the general fund of the district, shall be credited by 30 the treasurer to the school plant facilities reserve fund. 31 Disbursements from said fund may be made from time to time as the board of 32 trustees may determine, for purposes authorized in section 33-1102, Idaho 33 Code, and for lease and lease purchase agreements for such purposes and to 34 repay loans from commercial lending institutions or to repay notes or other 35 obligations issued to the Idaho state building authority extended to pay for 36 the construction of school plant facilities, but no expenditure for remodeling 37 existing buildings shall be authorized and made unless the estimated cost 38 thereof shall exceed five thousand dollars ($5,000). Lease purchase agreements 39 shall not extend beyond the period designated for any existing school plant 40 facilities reserve fund levy. Expenditures may also be made from this fund for 41 participation by the school district in any local improvement district in 42 which the school district may be situate, but any such participation shall not 43 create a lien upon any of the property owned by the school district. 44 Should any school district having a balance in its school plant facilities 45 reserve fund be consolidated with one (1) or more school districts to form a 46 new school district, the moneys in such fund shall be used to retire any bonds 47 issued by it and outstanding at the time of the consolidation. If there are no 48 bonds outstanding, any balance in its school plant facilities reserve fund 49 shall accrue to the new district to be added to or to create and establish a 50 school plant facilities reserve fund. 51 Should any school district having a balance in its school plant facilities 52 reserve fund be divided so as to create two (2) or more new districts the said 53 fund may be used to retire any bonds issued by it and outstanding at the time 5 1 of the division, or the said fund may be divided among the new school dis- 2 tricts, as may be approved by the electors at the time of the division. If the 3 fund is divided among the new districts, a school plant facilities reserve 4 fund is thereby created and established for each district. 5 The board of trustees of any school district having a school plant facili- 6 ties reserve fund created and established under any of the provisions of this 7 section, may discontinue the same by resolution adopted at any regular meeting 8 of the board. Upon such discontinuance, any balance in the fund shall be used 9 to retire any outstanding bonds, if any; otherwise, the balance may be trans- 10 ferred to the general fund of the district. 11 Moneys in the school plant facilities reserve fund being held for future 12 use may be invested in the manner of section 57-127, Idaho Code. 13 A detailed financial report of the operations in and the condition of the 14 school plant facilities reserve fund shall be included in the annual report of 15 each district. Forms for such reporting shall be provided by the state board 16 of education. Such report shall be published as provided by law for the publi- 17 cation of annual reports of school districts. 18 SECTION 4. That Section 33-905, Idaho Code, be, and the same is hereby 19 amended to read as follows: 20 33-905. SCHOOL DISTRICT BUILDING ACCOUNT -- PAYMENTS TO ACCOUNT -- MONEYS 21 APPROPRIATED TO STATE BOARD -- APPLICATION FOR MONEYS -- PAYMENTS TO DISTRICTS 22 -- REPORTS ON APPLICATIONS -- USES OF MONEYS. 1. The state of Idaho, recogniz- 23 ing its responsibility to establish and maintain a general, uniform and thor- 24 ough system of public, free common schools, in an effort to partially fulfill 25 this responsibility, hereby creates and establishes the school district build- 26 ing account in the state treasury. The school district building account shall 27 have paid into it such appropriations or revenues as may be provided by law. 28 2. Moneys in the school district building account are hereby appropriated 29 to and may be expended by the state board of education at any time for the 30 purposes provided in this section, any provision of chapter 35, title 67, 31 Idaho Code, or chapter 36, title 67, Idaho Code, notwithstanding. 32 3. (a) As to any moneys in the account other than lottery dividends dis- 33 tributed pursuant to subsection 4. of this section, the board of trustees 34 of any school district may apply to the state board of education to 35 receive a payment or payments from the school district building account; 36 provided, a district demonstrates to the state board of education that it 37 has a substantial and serious health and safety need based upon the 38 district'sclassroom student-teacher ratioscertified attestation and 39 demonstration of unsafe facilities, past efforts to levy for such con- 40 struction or repairs, physical condition of existing structures, and the 41 total assessed market value of the district, all of which shall be further 42 defined by actual need criteria established by the state board of educa- 43 tion. 44 (b) When an application for moneys from the account is approved by the 45 state board of education, the state board shall inform the school district 46 that the application has been approved, citing the amount approved for 47 payment and an estimate of the time when the payment can actually be made 48 to the school district. 49 4. By not later than August 31, moneys in the account pursuant to distri- 50 bution from section 67-7434, Idaho Code, the lottery dividends and interest 51 earned thereon, shall be distributed to each of the several school districts, 52 in the proportion that the average daily attendance of that district for the 53 previous school year bears to the total average daily attendance of the state 6 1 during the previous school year. For the purposes of this subsection 4. only, 2 the Idaho school for the deaf and blind shall be considered a school district, 3 and shall receive a distribution based upon the average daily attendance of 4 the school. Average daily attendance shall be calculated as provided in sec- 5 tion 33-100245., Idaho Code. 6 5. All payments from the school district building account shall be paid 7 out directly to the school district in warrants drawn by the state controller 8 upon presentation of proper vouchers from the state board of education. Pend- 9 ing payments out of the school district building account, the moneys in the 10 account shall be invested by the state treasurer in the same manner as pro- 11 vided under section 67-1210, Idaho Code, with respect to other idle moneys in 12 the state treasury. Interest earned on the investments shall be returned to 13 the school district building account. 14 6. Payments from the school district building account received by a 15 school district may be used by the school district for the purposes authorized 16 in section 33-1102, Idaho Code. 17 7. (a) By not later than December 1, each school district shall report to 18 the state department of education the projects on which moneys received 19 from the school district building account were expended. The state depart- 20 ment of education shall transmit a summary of such reports to the legisla- 21 ture by not later than January 15 of the following year. 22 (b) By not later than December 1, each school district shall report to 23 the state department of education the planned uses for the moneys received 24 from the school district building account. The state department of educa- 25 tion shall transmit a summary of the reports to the legislature by not 26 later than January 15 of the following year. 27 SECTION 5. That Section 67-6402, Idaho Code, be, and the same is hereby 28 amended to read as follows: 29 67-6402. DEFINITIONS. As used in this chapter the following words and 30 terms have the following meanings, unless a different meaning clearly appears 31 from the context: 32 (a) "Authority" means the Idaho state building authority created and 33 established pursuant to section 67-6403, Idaho Code. 34 (b) "Bonds," "notes" or "bond anticipation notes" and "other obligations" 35 mean any bonds, notes, debentures, interim certificates or other evidences of 36 financial indebtedness, respectively, issued by the state building authority 37 pursuant to this chapter. 38 (c) "Federal government" means the United States of America, or any 39 agency or instrumentality, corporate or otherwise of the United States of 40 America. 41 (d) "School facility" means any work or undertaking, whether new con- 42 struction or rehabilitation, which is financed pursuant to the provisions of 43 this act and is designed and used as a building, structure, improvement or 44 equipment of every kind, nature and description which may be required or con- 45 venient for the purposes of a school district including, without limiting the 46 generality of the foregoing, any of the facilities or improvements for which a 47 school district may incur bonded indebtedness under section 33-1102, Idaho 48 Code. 49 (e) "School district" means any school district, including a specially 50 chartered district organized and existing under chapter 3, title 33, Idaho 51 Code. 52 (f) "State fFacility" means any work or undertaking, whether new con- 53 struction or rehabilitation, which is designed and financed pursuant to the 7 1 provisions of this act and designed for use as an office building, laboratory, 2 library, dining room, instructional facility, motor vehicle parking, storage 3 or service facility or for any other use by any state body and all other real 4 or personal properties which are necessary, convenient, or desirable appurte- 5 nances, such as but not limited to streets, sewers, utilities, parks, site 6 preparation, landscaping, and such equipment which may be necessary to consti- 7 tute a fully equipped and modernofficebuilding as the authority determines 8 to be necessary or convenient to accomplish the purposes of this act. 9 (eg) "Municipality" means any city, municipal corporation, or other 10 political subdivision of this state. 11 (fh) "Real property" means all lands, including improvements and fix- 12 tures thereon, and property of any nature appurtenant thereto, or used in con- 13 nection therewith, and every estate, interest and right, legal or equitable, 14 therein, including terms of years and liens by way of judgment, mortgage or 15 otherwise and the indebtedness secured by such liens. 16 (gi) "State" means the state of Idaho. 17 (hj) "State body" means any department, board, commission, or agency of 18 the state of Idaho. 19 SECTION 6. That Section 67-6404, Idaho Code, be, and the same is hereby 20 amended to read as follows: 21 67-6404. DECLARATION OF POLICY. It is hereby declared: 22 (a)tThe functions of government have multiplied many times since the 23 admission of the state of Idaho into the union in 1890; 24 (b)iIn view of the many increased functions of government, it is neces- 25 sary that proper provision of office space and related facilities for the many 26 departments, agencies and commissions of state government and its instrumen- 27 talities be provided; many such state governmental bodies are inadequately 28 provided with the necessary office space and related facilities; 29 (c)iIt is to the economic benefit of the citizens of the state of Idaho 30 to provide sufficient office space, school facilities and the necessary 31 related facilities for such state governmental bodies and school districts and 32 thus provide a more efficient and more economical operation of state govern- 33 ment and the public schools. 34 It is further declared that in order to provide for a fully adequate sup- 35 ply of governmental facilities at costs that state government can afford, the 36 legislature finds it necessary to create and establish a state building 37 authority for the purpose of constructing and operating such facilities to 38 meet the needs of the state government. 39 It is hereby further declared to be necessary and in the public interest 40 that such state building authority provide for predevelopment costs, temporary 41 financing, land development expenses, construction and operation of governmen- 42 tal facilities for rental to state government. 43 It is hereby further declared that the foregoing are public purposes and 44 uses for which public moneys may be borrowed, expended, advanced, loaned, or 45 granted, and that such activities serve a public purpose in improving or 46 otherwise benefiting the people of this state; that the necessity of enacting 47 the provisions hereinafter set forth is in the public interest and is hereby 48 so declared as a matter of express legislative determination. 49 SECTION 7. That Section 67-6409, Idaho Code, be, and the same is hereby 50 amended to read as follows: 51 67-6409. GENERAL POWERS OF THE AUTHORITY. The authority is hereby 8 1 granted, has and may exercise all powers necessary or appropriate to carry out 2 and effectuate its corporate purposes, including, without limitation, the fol- 3 lowing: 4 (a) sue and be sued in its own name; 5 (b) have an official seal and to alter the same at pleasure; 6 (c) have perpetual succession; 7 (d) maintain an office at such place or places within this state as it 8 may designate; 9 (e) adopt and from time to time amend and repealby-lawsbylaws and 10 rules,and regulations,not inconsistent with this chapter, to carry into 11 effect the powers and purposes of the authority and the conduct of its busi- 12 ness; 13 (f) make and execute contracts and all other instruments necessary or 14 convenient for the exercise of its powers and functions; 15 (g) acquire real or personal property, or any interest therein, on either 16 a temporary or long-term basis in the name of the authority by gift, purchase, 17 transfer, foreclosure, lease or otherwise including rights or easements; hold, 18 sell, assign, lease, encumber, mortgage or otherwise dispose of any real or 19 personal property, or any interest therein, or mortgage interest owned by it 20 or under its control, custody or in its possession and release or relinquish 21 any right, title, claim, lien, interest, easement or demand however acquired, 22 including any equity or right of redemption in property foreclosed by it and 23 to do any of the foregoing by public sale, with such public bidding as shall 24 be required by the provisions of any other law; 25 (h) to lease or rent any lands, buildings, structures, facilities or 26 equipment from private parties to effectuate the purposes of this act; 27 (i) to enter into agreements or other transactions with and accept grants 28 and the cooperation of the United States or any agency thereof or of the state 29 of Idaho or any agency or governmental subdivision thereof in furtherance of 30 the purposes of this act,including, but not limited to, the development, 31 maintenance, operation and financing of any facility and to do any and all 32 things necessary in order to avail itself of such aid and cooperation; 33 (j) to receive and accept aid or contributions from any source of money, 34 property, labor or other things of value, to be held, used and applied to 35 carry out the purposes of this act subject to such conditions upon which such 36 grants and contributions may be made, including, but not limited to, gifts or 37 grants from any department or agency of the United States or this state for 38 any purpose consistent with this act; 39 (k) to employ architects, engineers, attorneys, accountants, building 40 construction and financial experts and such other advisors, consultants and 41 agents as may be necessary in its judgment and to fix their compensation; 42 (l) to procure insurance against any loss in connection with its property 43 and other assets in such amounts and from such insurers as it deems desirable; 44 (m) to invest any funds not needed for immediate use or disbursement, 45 including any funds held in reserve, in: 46 (1) bonds, notes and other obligations of the United States or any agency 47 or instrumentality thereof and other securities secured by such bonds, 48 notes or other obligation; 49 (2) money market funds which are insured or the assets of which are lim- 50 ited to obligations of the United States or any agency or instrumentality 51 thereof; 52 (3) time certificates of deposit and savings accounts; 53 (4) commercial paper which, at the time of its purchase, is rated in the 54 highest category by a nationally recognized rating service; and 55 (5) property or securities in which the state treasurer may invest funds 9 1 in the state treasury pursuant to section 67-1210, Idaho Code. 2 (n) to borrow money and issue bonds and notes or other evidences of 3 indebtedness thereof as hereinafter provided; 4 (o) to the extent permitted under its contract with the holders of bonds, 5 notes and other obligations of the authority to consent to any modification of 6 any contract, lease or agreement of any kind to which the authority is a 7 party; 8 (p) to manage or operate real and personal property, in the state, take 9 assignments of leases and rentals, proceed with foreclosure actions, or take 10 any other action necessary or incidental to the performance of its corporate 11 duties; 12 (q) to make and enter into all contracts and agreements necessary or 13 incidental to the performance of its duties and the execution of its powers 14 under this chapter; 15 (r) to plan, carry out, acquire, lease and operate facilities and to pro- 16 vide for the construction, reconstruction, improvement, alteration or repair 17 of any facility or part thereof; 18 (s) to sell, lease, rent or sublease to any state body, any state facil- 19 ity or any space embraced in any facility constructed or leased under this 20 act, to establish and revise the rents or charges therefor and to do any other 21 acts necessary to the management and operation of its facilities; 22 (t) to make loans to school districts for the purpose of financing any 23 school facility; 24 (u) to do any act necessary or convenient to the exercise of the powers 25 herein granted or reasonably implied therefrom. 26 SECTION 8. That Section 67-6410, Idaho Code, be, and the same is hereby 27 amended to read as follows: 28 67-6410. PROCEDURE PRIOR TO FINANCING BUILDING DEVELOPMENTS OR BUILDING 29 PROJECTS. Notwithstanding any other provision of this act, the authority is 30 not empowered to finance any state facility pursuant to section 67-6409, Idaho 31 Code, unless: 32 (a) Prior approval by the legislature has been given by concurrent reso- 33 lution authorizing a state body to have the authority provide a specific 34 facility; 35 (b) A state body has entered into an agreement with the authority for the 36 authority to provide a facility; 37 (c) The authority finds that the building development or building project 38 to be assisted pursuant to the provisions of this act, will be of public use 39 and will provide a public benefit. The authority shall not be required to 40 obtain prior legislative approval for the financing of any school facility. 41 Prior to financing any improvements to a school facility that shall be health 42 and safety improvements, the authority shall require the school district and 43 the superintendent of public instruction to certify that the improvements 44 shall constitute an ordinary and necessary expense under section 3, article 45 VIII of the constitution of the state of Idaho. 46 SECTION 9. An emergency existing therefor, which emergency is hereby 47 declared to exist, this act shall be in full force and effect on and after its 48 passage and approval, and retroactively to January 1, 2000; provided however, 49 this act shall not apply to any expenditure of lottery moneys during the 50 1999-2000 school year that were legally encumbered before the time of passage 51 and approval of this act.
AS1496|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature Second Regular Session - 2000Moved by Riggs Seconded by Keough IN THE SENATE SENATE AMENDMENT TO S.B. NO. 1496 1 AMENDMENT TO THE BILL 2 On page 1 of the printed bill, delete lines 36 through 43 and delete 3 pages 2 through 10 and insert: 4 "SECTION 1. That Chapter 16, Title 33, Idaho Code, be, and the same is 5 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 6 ignated as Section 33-1613, Idaho Code, and to read as follows: 7 33-1613. SAFE PUBLIC SCHOOL FACILITIES REQUIRED. (1) Definition. As used 8 in this section, "public school facilities" means the physical plant of 9 improved or unimproved real property owned or operated by a school district, 10 including school buildings, administration buildings, playgrounds, athletic 11 fields, etc., used by schoolchildren or school district personnel in the nor- 12 mal course of providing a general, uniform and thorough system of public, free 13 common schools, but does not include areas, buildings or parts of buildings 14 closed from or not used in the normal course of providing a general, uniform 15 and thorough system of public, free common schools. The aspects of a safe 16 environment conducive to learning as provided by section 33-1612, Idaho Code, 17 that pertain to the physical plant used to provide a general, uniform and 18 thorough system of public, free common schools are hereby defined as those 19 necessary to comply with the safety and health requirements set forth in this 20 section. 21 (2) Inspection. It is the duty of the board of trustees of every school 22 district at least once in every school year to require an independent inspec- 23 tion of the district's school facilities to determine whether those school 24 facilities comply with codes addressing safety and health standards for facil- 25 ities, including electrical, plumbing, mechanical, elevator, fire safety, 26 boiler safety, life safety, structural, snow loading, and sanitary codes, 27 adopted by or pursuant to the Idaho building code advisory act, chapter 41, 28 title 39, Idaho Code, adopted by the state fire marshal, adopted by generally 29 applicable local ordinances, or adopted by rule of the state board of educa- 30 tion and applicable to school facilities. The inspection shall be done pursu- 31 ant to section 39-4130, Idaho Code, or by an independent inspector profession- 32 ally qualified to conduct inspections under the applicable code. The results 33 of the inspection shall be presented to the board of trustees for their review 34 and consideration. 35 (3) Abatement required -- Reporting. The board of trustees shall, in 36 their sole discretion, accept or reject the results of the inspection in whole 37 or in part and in so doing shall identify any unsafe or unhealthy conditions 38 in the district. The board of trustees shall require that the unsafe or 39 unhealthy conditions be abated and shall instruct the district's personnel to 40 take necessary steps to abate unsafe or unhealthy conditions. The board of 41 trustees must issue a report in the same school year in which the inspections 2 1 are made declaring whether any unsafe or unhealthy conditions identified have 2 not been abated. The state board of education may, by rule, provide for uni- 3 form reporting of unsafe and unhealthy conditions and for uniform reporting of 4 abatement or absence of abatement of unsafe and unhealthy conditions. 5 (4) Costs of and plan of abatement. If the school district can abate all 6 unsafe or unhealthy conditions identified with the funds available to the dis- 7 trict, it shall do so, and it need not separately account for the costs of 8 abatement nor segregate funds expended for abatement. If the school district 9 cannot abate all unsafe or unhealthy conditions identified with the funds 10 available to it, the board of trustees shall direct that a plan of abatement 11 be prepared. The plan of abatement shall provide a timetable that shall begin 12 no later than the following school year and that shall provide for abatement 13 with all deliberate speed of unsafe and unhealthy conditions identified. The 14 district shall immediately begin to implement its plan of abatement and must 15 separately account for its costs of abatement of unsafe and unhealthy condi- 16 tions and separately segregate funds for the abatement of unsafe and unhealthy 17 conditions as required by subsection (5) of this section. 18 (5) Special provisions for implementation of plan of abatement. 19 (a) Notwithstanding any other provisions of law concerning expenditure of 20 lottery moneys distributed to the school district, all lottery moneys pro- 21 vided to the school district for a school year in which the school dis- 22 trict cannot abate unsafe or unhealthy conditions identified and not 23 legally encumbered to other uses at the time and all lottery moneys for 24 following school years shall be segregated and expended exclusively for 25 abatement of unsafe and unhealthy conditions identified until all of the 26 unhealthy and unsafe conditions identified are abated, provided, if the 27 school district has obtained a loan from the Idaho state building author- 28 ity, under the provisions of section 33-1126, Idaho Code, the conditions 29 of the loan shall determine the use of the district's lottery moneys dur- 30 ing the term of the loan. 31 (b) If the lottery moneys referred to in paragraph (a) of this subsection 32 will, in the board of trustees' estimation, be insufficient to abate the 33 unsafe and unhealthy conditions identified, the plan of abatement shall 34 identify additional sources of funds to complete the abatement of the 35 unsafe and unhealthy conditions. The board of trustees may choose from 36 among the following sources, or from other sources of its own identifica- 37 tion, but the plan of abatement must identify sufficient sources of funds 38 for abatement. 39 (i) If the school district is not levying under chapter 8, title 40 33, Idaho Code, at the maximum levies allowed by law for levies that 41 may be imposed by a board of trustees without an election, the board 42 of trustees may increase any of those levies as allowed by law for 43 the school year following the school year in which it was unable to 44 abate unsafe or unhealthy conditions identified. 45 (ii) If the school district is levying under chapter 8, title 33, 46 Idaho Code, at the maximum levies allowed by law for levies that may 47 be imposed by the board of trustees without an election; or, if after 48 increasing those levies to the maximum levies allowed by law for 49 levies that may be imposed by the board of trustees without an elec- 50 tion, there will still be insufficient funds to abate unsafe or 51 unhealthy conditions identified, the school district, after giving 52 notice and conducting a hearing, may declare a health and safety 53 financial emergency and may then apply for a loan from the Idaho 54 state building authority as provided in section 33-1126, Idaho Code, 55 to obtain funds to abate the unsafe or unhealthy conditions identi- 3 1 fied. 2 (iii) Upon the declaration of a health and safety financial emer- 3 gency, which results in a reduction in force, freezing of any sala- 4 ries, or suspension of any contracts, the payments to the school dis- 5 trict under the foundation program of chapter 10, title 33, Idaho 6 Code, and in particular the staff allowance under that chapter, shall 7 not be correspondingly reduced during the duration of the financial 8 emergency to a level less than what the staff allowance would have 9 been without the reduction in force, frozen salaries or suspended 10 contracts. 11 (c) All costs of abatement for a program implementing plans of abatement 12 under subsection (5) of this section must be separately accounted for and 13 documented with regard to abatement of each unsafe or unhealthy condition 14 identified. Funds obtained under section 33-1126, Idaho Code, must be used 15 exclusively to abate unsafe or unhealthy conditions identified. Funds 16 obtained pursuant to section 33-1126, Idaho Code, in excess of funds nec- 17 essary to abate unsafe or unhealthy conditions identified must be returned 18 as provided in section 33-1126, Idaho Code. Return of these funds shall be 19 judicially enforceable as provided in section 33-1126, Idaho Code. 20 SECTION 2. That Chapter 11, Title 33, Idaho Code, be, and the same is 21 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 22 ignated as Section 33-1126, Idaho Code, and to read as follows: 23 33-1126. OBLIGATIONS PAYABLE TO IDAHO STATE BUILDING AUTHORITY. (1) Any 24 school district having declared a health and safety financial emergency as 25 described in section 33-1613, Idaho Code, shall have the power to enter into 26 agreements with, and execute notes or other obligations payable to, the Idaho 27 state building authority for the financing of any school facilities as defined 28 in the Idaho state building authority act, chapter 64, title 67, Idaho Code. 29 The notes or other obligations shall be authorized by a resolution of the 30 school district, shall bear such date or dates and shall mature at such times 31 as such resolution may provide, not exceeding twenty (20) years from the date 32 of issuance. The notes or other obligations shall bear interest at such rates 33 as the resolution shall provide and as shall be agreed upon with the Idaho 34 state building authority. 35 (2) Notes or other obligations issued under this section shall constitute 36 a general obligation of the school district payable from any of its lawful 37 funds. The provisions of sections 33-1103 through 33-1114, Idaho Code, shall 38 not apply to school district notes or other obligations issued under this sec- 39 tion unless the Idaho state building authority shall require compliance with 40 any or all of such provisions. 41 (3) Prior to financing any improvements to a school facility that shall 42 be health and safety improvements and which the school district proposes to 43 undertake without first obtaining the approval of the percentage of votes of 44 the school district that would be required for the issuance of bonds of the 45 school district under section 33-1103, Idaho Code, the school district shall 46 certify to the authority that the improvements shall constitute an ordinary 47 and necessary expense under section 3, article VIII, of the constitution of 48 the state of Idaho. 49 SECTION 3. That Section 33-901, Idaho Code, be, and the same is hereby 50 amended to read as follows: 51 33-901. SCHOOL PLANT FACILITIES RESERVE FUND. The board of trustees of 4 1 any school district may create and establish a school plant facilities reserve 2 fund by resolution adopted at any regular or special meeting of the board. All 3 moneys for said fund accruing from taxes levied under section 33-804, Idaho 4 Code, together with interest accruing from the investment of any moneys in 5 the fund and any moneys allowed for depreciation of school plant facilities as 6 are appropriated from the general fund of the district, shall be credited by 7 the treasurer to the school plant facilities reserve fund. 8 Disbursements from said fund may be made from time to time as the board of 9 trustees may determine, for purposes authorized in section 33-1102, Idaho 10 Code, and for lease and lease purchase agreements for such purposes and to 11 repay loans from commercial lending institutions or to repay notes or other 12 obligations issued to the Idaho state building authority extended to pay for 13 the construction of school plant facilities, but no expenditure for remodeling 14 existing buildings shall be authorized and made unless the estimated cost 15 thereof shall exceed five thousand dollars ($5,000). Lease purchase agreements 16 shall not extend beyond the period designated for any existing school plant 17 facilities reserve fund levy. Expenditures may also be made from this fund for 18 participation by the school district in any local improvement district in 19 which the school district may be situate, but any such participation shall not 20 create a lien upon any of the property owned by the school district. 21 Should any school district having a balance in its school plant facilities 22 reserve fund be consolidated with one (1) or more school districts to form a 23 new school district, the moneys in such fund shall be used to retire any bonds 24 issued by it and outstanding at the time of the consolidation. If there are no 25 bonds outstanding, any balance in its school plant facilities reserve fund 26 shall accrue to the new district to be added to or to create and establish a 27 school plant facilities reserve fund. 28 Should any school district having a balance in its school plant facilities 29 reserve fund be divided so as to create two (2) or more new districts the said 30 fund may be used to retire any bonds issued by it and outstanding at the time 31 of the division, or the said fund may be divided among the new school dis- 32 tricts, as may be approved by the electors at the time of the division. If the 33 fund is divided among the new districts, a school plant facilities reserve 34 fund is thereby created and established for each district. 35 The board of trustees of any school district having a school plant facili- 36 ties reserve fund created and established under any of the provisions of this 37 section, may discontinue the same by resolution adopted at any regular meeting 38 of the board. Upon such discontinuance, any balance in the fund shall be used 39 to retire any outstanding bonds, if any; otherwise, the balance may be trans- 40 ferred to the general fund of the district. 41 Moneys in the school plant facilities reserve fund being held for future 42 use may be invested in the manner of section 57-127, Idaho Code. 43 A detailed financial report of the operations in and the condition of the 44 school plant facilities reserve fund shall be included in the annual report of 45 each district. Forms for such reporting shall be provided by the state board 46 of education. Such report shall be published as provided by law for the publi- 47 cation of annual reports of school districts. 48 SECTION 4. That Section 33-905, Idaho Code, be, and the same is hereby 49 amended to read as follows: 50 33-905. SCHOOL DISTRICT BUILDING ACCOUNT -- PAYMENTS TO ACCOUNT -- MONEYS 51 APPROPRIATED TO STATE BOARD -- APPLICATION FOR MONEYS -- PAYMENTS TO DISTRICTS 52 -- REPORTS ON APPLICATIONS -- USES OF MONEYS. 1. The state of Idaho, recogniz- 53 ing its responsibility to establish and maintain a general, uniform and thor- 5 1 ough system of public, free common schools, in an effort to partially fulfill 2 this responsibility, hereby creates and establishes the school district build- 3 ing account in the state treasury. The school district building account shall 4 have paid into it such appropriations or revenues as may be provided by law. 5 2. Moneys in the school district building account are hereby appropriated 6 to and may be expended by the state board of education at any time for the 7 purposes provided in this section, any provision of chapter 35, title 67, 8 Idaho Code, or chapter 36, title 67, Idaho Code, notwithstanding. 9 3. (a) As to any moneys in the account other than lottery dividends dis- 10 tributed pursuant to subsection 4. of this section, the board of trustees 11 of any school district may apply to the state board of education to 12 receive a payment or payments from the school district building account; 13 provided, a district demonstrates to the state board of education that it 14 has a substantial and serious health and safety need based upon the 15 district'sclassroom student-teacher ratioscertified attestation and 16 demonstration of unsafe facilities, past efforts to levy for such con- 17 struction or repairs, physical condition of existing structures, and the 18 total assessed market value of the district, all of which shall be further 19 defined by actual need criteria established by the state board of educa- 20 tion. 21 (b) When an application for moneys from the account is approved by the 22 state board of education, the state board shall inform the school district 23 that the application has been approved, citing the amount approved for 24 payment and an estimate of the time when the payment can actually be made 25 to the school district. 26 4. By not later than August 31, moneys in the account pursuant to distri- 27 bution from section 67-7434, Idaho Code, the lottery dividends and interest 28 earned thereon, shall be distributed to each of the several school districts, 29 in the proportion that the average daily attendance of that district for the 30 previous school year bears to the total average daily attendance of the state 31 during the previous school year. For the purposes of this subsection 4. only, 32 the Idaho school for the deaf and blind shall be considered a school district, 33 and shall receive a distribution based upon the average daily attendance of 34 the school. Average daily attendance shall be calculated as provided in sec- 35 tion 33-100245., Idaho Code. 36 5. All payments from the school district building account shall be paid 37 out directly to the school district in warrants drawn by the state controller 38 upon presentation of proper vouchers from the state board of education. Pend- 39 ing payments out of the school district building account, the moneys in the 40 account shall be invested by the state treasurer in the same manner as pro- 41 vided under section 67-1210, Idaho Code, with respect to other idle moneys in 42 the state treasury. Interest earned on the investments shall be returned to 43 the school district building account. 44 6. Payments from the school district building account received by a 45 school district may be used by the school district for the purposes authorized 46 in section 33-1102, Idaho Code. 47 7. (a) By not later than December 1, each school district shall report to 48 the state department of education the projects on which moneys received 49 from the school district building account were expended. The state depart- 50 ment of education shall transmit a summary of such reports to the legisla- 51 ture by not later than January 15 of the following year. 52 (b) By not later than December 1, each school district shall report to 53 the state department of education the planned uses for the moneys received 54 from the school district building account. The state department of educa- 55 tion shall transmit a summary of the reports to the legislature by not 6 1 later than January 15 of the following year. 2 SECTION 5. That Section 67-6402, Idaho Code, be, and the same is hereby 3 amended to read as follows: 4 67-6402. DEFINITIONS. As used in this chapter the following words and 5 terms have the following meanings, unless a different meaning clearly appears 6 from the context: 7 (a) "Authority" means the Idaho state building authority created and 8 established pursuant to section 67-6403, Idaho Code. 9 (b) "Bonds," "notes" or "bond anticipation notes" and "other obligations" 10 mean any bonds, notes, debentures, interim certificates or other evidences of 11 financial indebtedness, respectively, issued by the state building authority 12 pursuant to this chapter. 13 (c) "Federal government" means the United States of America, or any 14 agency or instrumentality, corporate or otherwise of the United States of 15 America. 16 (d) "School facility" means any work or undertaking, whether new con- 17 struction or rehabilitation, which is financed pursuant to the provisions of 18 this act and is designed and used as a building, structure, improvement or 19 equipment of every kind, nature and description which may be required or con- 20 venient for the purposes of a school district including, without limiting the 21 generality of the foregoing, any of the facilities or improvements for which a 22 school district may incur bonded indebtedness under section 33-1102, Idaho 23 Code. 24 (e) "School district" means any school district, including a specially 25 chartered district organized and existing under chapter 3, title 33, Idaho 26 Code. 27 (f) "State fFacility" means any work or undertaking, whether new con- 28 struction or rehabilitation, which is designed and financed pursuant to the 29 provisions of this act and designed for use as an office building, laboratory, 30 library, dining room, instructional facility, motor vehicle parking, storage 31 or service facility or for any other use by any state body and all other real 32 or personal properties which are necessary, convenient, or desirable appurte- 33 nances, such as but not limited to streets, sewers, utilities, parks, site 34 preparation, landscaping, and such equipment which may be necessary to consti- 35 tute a fully equipped and modernofficebuilding as the authority determines 36 to be necessary or convenient to accomplish the purposes of this act. 37 (eg) "Municipality" means any city, municipal corporation, or other 38 political subdivision of this state. 39 (fh) "Real property" means all lands, including improvements and fix- 40 tures thereon, and property of any nature appurtenant thereto, or used in con- 41 nection therewith, and every estate, interest and right, legal or equitable, 42 therein, including terms of years and liens by way of judgment, mortgage or 43 otherwise and the indebtedness secured by such liens. 44 (gi) "State" means the state of Idaho. 45 (hj) "State body" means any department, board, commission, or agency of 46 the state of Idaho. 47 SECTION 6. That Section 67-6404, Idaho Code, be, and the same is hereby 48 amended to read as follows: 49 67-6404. DECLARATION OF POLICY. It is hereby declared: 50 (a)tThe functions of government have multiplied many times since the 51 admission of the state of Idaho into the union in 1890; 7 1 (b)iIn view of the many increased functions of government, it is neces- 2 sary that proper provision of office space and related facilities for the many 3 departments, agencies and commissions of state government and its instrumen- 4 talities be provided; many such state governmental bodies are inadequately 5 provided with the necessary office space and related facilities; 6 (c)iIt is to the economic benefit of the citizens of the state of Idaho 7 to provide sufficient office space, school facilities and the necessary 8 related facilities for such state governmental bodies and school districts and 9 thus provide a more efficient and more economical operation of state govern- 10 ment and the public schools. 11 It is further declared that in order to provide for a fully adequate sup- 12 ply of governmental facilities at costs that state government can afford, the 13 legislature finds it necessary to create and establish a state building 14 authority for the purpose of constructing and operating such facilities to 15 meet the needs of the state government. 16 It is hereby further declared to be necessary and in the public interest 17 that such state building authority provide for predevelopment costs, temporary 18 financing, land development expenses, construction and operation of governmen- 19 tal facilities for rental to state government. 20 It is hereby further declared that the foregoing are public purposes and 21 uses for which public moneys may be borrowed, expended, advanced, loaned, or 22 granted, and that such activities serve a public purpose in improving or 23 otherwise benefiting the people of this state; that the necessity of enacting 24 the provisions hereinafter set forth is in the public interest and is hereby 25 so declared as a matter of express legislative determination. 26 SECTION 7. That Section 67-6409, Idaho Code, be, and the same is hereby 27 amended to read as follows: 28 67-6409. GENERAL POWERS OF THE AUTHORITY. The authority is hereby 29 granted, has and may exercise all powers necessary or appropriate to carry out 30 and effectuate its corporate purposes, including, without limitation, the fol- 31 lowing: 32 (a) sue and be sued in its own name; 33 (b) have an official seal and to alter the same at pleasure; 34 (c) have perpetual succession; 35 (d) maintain an office at such place or places within this state as it 36 may designate; 37 (e) adopt and from time to time amend and repealby-lawsbylaws and 38 rules,and regulations,not inconsistent with this chapter, to carry into 39 effect the powers and purposes of the authority and the conduct of its busi- 40 ness; 41 (f) make and execute contracts and all other instruments necessary or 42 convenient for the exercise of its powers and functions; 43 (g) acquire real or personal property, or any interest therein, on either 44 a temporary or long-term basis in the name of the authority by gift, purchase, 45 transfer, foreclosure, lease or otherwise including rights or easements; hold, 46 sell, assign, lease, encumber, mortgage or otherwise dispose of any real or 47 personal property, or any interest therein, or mortgage interest owned by it 48 or under its control, custody or in its possession and release or relinquish 49 any right, title, claim, lien, interest, easement or demand however acquired, 50 including any equity or right of redemption in property foreclosed by it and 51 to do any of the foregoing by public sale, with such public bidding as shall 52 be required by the provisions of any other law; 53 (h) to lease or rent any lands, buildings, structures, facilities or 8 1 equipment from private parties to effectuate the purposes of this act; 2 (i) to enter into agreements or other transactions with and accept grants 3 and the cooperation of the United States or any agency thereof or of the state 4 of Idaho or any agency or governmental subdivision thereof in furtherance of 5 the purposes of this act,including, but not limited to, the development, 6 maintenance, operation and financing of any facility and to do any and all 7 things necessary in order to avail itself of such aid and cooperation; 8 (j) to receive and accept aid or contributions from any source of money, 9 property, labor or other things of value, to be held, used and applied to 10 carry out the purposes of this act subject to such conditions upon which such 11 grants and contributions may be made, including, but not limited to, gifts or 12 grants from any department or agency of the United States or this state for 13 any purpose consistent with this act; 14 (k) to employ architects, engineers, attorneys, accountants, building 15 construction and financial experts and such other advisors, consultants and 16 agents as may be necessary in its judgment and to fix their compensation; 17 (l) to procure insurance against any loss in connection with its property 18 and other assets in such amounts and from such insurers as it deems desirable; 19 (m) to invest any funds not needed for immediate use or disbursement, 20 including any funds held in reserve, in: 21 (1) bonds, notes and other obligations of the United States or any agency 22 or instrumentality thereof and other securities secured by such bonds, 23 notes or other obligation; 24 (2) money market funds which are insured or the assets of which are lim- 25 ited to obligations of the United States or any agency or instrumentality 26 thereof; 27 (3) time certificates of deposit and savings accounts; 28 (4) commercial paper which, at the time of its purchase, is rated in the 29 highest category by a nationally recognized rating service; and 30 (5) property or securities in which the state treasurer may invest funds 31 in the state treasury pursuant to section 67-1210, Idaho Code. 32 (n) to borrow money and issue bonds and notes or other evidences of 33 indebtedness thereof as hereinafter provided; 34 (o) to the extent permitted under its contract with the holders of bonds, 35 notes and other obligations of the authority to consent to any modification of 36 any contract, lease or agreement of any kind to which the authority is a 37 party; 38 (p) to manage or operate real and personal property, in the state, take 39 assignments of leases and rentals, proceed with foreclosure actions, or take 40 any other action necessary or incidental to the performance of its corporate 41 duties; 42 (q) to make and enter into all contracts and agreements necessary or 43 incidental to the performance of its duties and the execution of its powers 44 under this chapter; 45 (r) to plan, carry out, acquire, lease and operate facilities and to pro- 46 vide for the construction, reconstruction, improvement, alteration or repair 47 of any facility or part thereof; 48 (s) to sell, lease, rent or sublease to any state body, any state facil- 49 ity or any space embraced in any facility constructed or leased under this 50 act, to establish and revise the rents or charges therefor and to do any other 51 acts necessary to the management and operation of its facilities; 52 (t) to make loans to school districts for the purpose of financing any 53 school facility; 54 (u) to do any act necessary or convenient to the exercise of the powers 55 herein granted or reasonably implied therefrom. 9 1 SECTION 8. That Section 67-6410, Idaho Code, be, and the same is hereby 2 amended to read as follows: 3 67-6410. PROCEDURE PRIOR TO FINANCING BUILDING DEVELOPMENTS OR BUILDING 4 PROJECTS. Notwithstanding any other provision of this act, the authority is 5 not empowered to finance any state facility pursuant to section 67-6409, Idaho 6 Code, unless: 7 (a) Prior approval by the legislature has been given by concurrent reso- 8 lution authorizing a state body to have the authority provide a specific 9 facility; 10 (b) A state body has entered into an agreement with the authority for the 11 authority to provide a facility; 12 (c) The authority finds that the building development or building project 13 to be assisted pursuant to the provisions of this act, will be of public use 14 and will provide a public benefit. The authority shall not be required to 15 obtain prior legislative approval for the financing of any school facility. 16 Prior to financing any improvements to a school facility that shall be health 17 and safety improvements, the authority shall require the school district and 18 the superintendent of public instruction to certify that the improvements 19 shall constitute an ordinary and necessary expense under section 3, article 20 VIII of the constitution of the state of Idaho. 21 SECTION 9. An emergency existing therefor, which emergency is hereby 22 declared to exist, this act shall be in full force and effect on and after its 23 passage and approval, and retroactively to January 1, 2000; provided however, 24 this act shall not apply to any expenditure of lottery moneys during the 25 1999-2000 school year that were legally encumbered before the time of passage 26 and approval of this act.". 27 CORRECTION TO TITLE 28 On page 1 of the printed bill, delete lines 2 through 34 and insert: 29 "RELATING TO THE PROVISION OF SCHOOL FACILITIES; AMENDING CHAPTER 16, TITLE 30 33, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 33-1613, IDAHO CODE, TO 31 REQUIRE ABATEMENT OF UNSAFE AND UNHEALTHY CONDITIONS IN PUBLIC SCHOOL 32 FACILITIES AND TO PROVIDE THE MECHANISM FOR SUCH ABATEMENT; AMENDING CHAP- 33 TER 11, TITLE 33, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 33-1126, 34 IDAHO CODE, TO PROVIDE THAT A SCHOOL DISTRICT SHALL HAVE THE POWER TO 35 ENTER INTO AGREEMENTS WITH AND EXECUTE NOTES OR OTHER OBLIGATIONS PAYABLE 36 TO THE IDAHO STATE BUILDING AUTHORITY FOR THE FINANCING OF SCHOOL FACILI- 37 TIES, TO PROVIDE THE EFFECT OF NOTES OR OTHER OBLIGATIONS AND TO PROVIDE 38 FOR CERTIFICATION FROM THE SCHOOL DISTRICT TO THE BUILDING AUTHORITY OF 39 CERTAIN FACTS; AMENDING SECTION 33-901, IDAHO CODE, TO PROVIDE THAT MONEYS 40 IN THE SCHOOL PLANT FACILITIES RESERVE FUND MAY BE USED TO REPAY NOTES OR 41 OTHER OBLIGATIONS ISSUED TO THE STATE BUILDING AUTHORITY AND TO MAKE A 42 TECHNICAL CORRECTION; AMENDING SECTION 33-905, IDAHO CODE, TO REVISE FOR 43 WHAT THE MONEYS IN THE SCHOOL DISTRICT BUILDING ACCOUNT MAY BE UTILIZED 44 AND TO MAKE A TECHNICAL CORRECTION; AMENDING SECTION 67-6402, IDAHO CODE, 45 TO FURTHER DEFINE TERMS; AMENDING SECTION 67-6404, IDAHO CODE, TO PROVIDE 46 THAT IT IS IN THE PUBLIC INTEREST TO ALLOW THE STATE BUILDING AUTHORITY TO 47 PROVIDE SCHOOL FACILITIES AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SEC- 48 TION 67-6409, IDAHO CODE, TO PROVIDE CLARIFYING LANGUAGE REGARDING A STATE 49 FACILITY AND TO AUTHORIZE THE STATE BUILDING AUTHORITY TO MAKE LOANS TO 50 SCHOOL DISTRICTS FOR THE PURPOSE OF FINANCING ANY SCHOOL FACILITY AND TO 51 MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 67-6410, IDAHO CODE, TO PRO- 52 VIDE CLARIFYING LANGUAGE REGARDING STATE FACILITIES, TO PROVIDE THAT THE 10 1 AUTHORITY SHALL NOT BE REQUIRED TO OBTAIN PRIOR LEGISLATIVE APPROVAL FOR 2 THE FINANCING OF ANY SCHOOL FACILITY AND TO PROVIDE REQUIREMENTS FOR THE 3 FINANCING OF A SCHOOL FACILITY; DECLARING AN EMERGENCY, PROVIDING RETROAC- 4 TIVE APPLICATION AND PROVIDING THE EFFECT ON CERTAIN LOTTERY MONEYS.".
STATEMENT OF PURPOSE RS10176 This legislation will establish both an opportunity and a requirement for Idaho's school districts to address Health and Safety problems for Idaho school facilities. This initiative is designed to provide an additional tool for all Idaho public school districts to correct the backlog of health and safety deficiencies. The purpose of this bill is to require each school district to identify and abate unsafe and unhealthy conditions in school district buildings. After a school district has received an objective professional opinion regarding a building deficiency, if the problem cannot be solved with lottery funds or local levy funds, that district would then have guaranteed access to funds from the Idaho State Building Authority. Individual school districts would then contract directly with the State Building Authority to repay the loan over 20 years. FISCAL NOTE Fiscal Impact - ZERO CONTACT: Senator Jack Riggs 332-1341 Senator Gary Schroeder 332-1321 AMENDED REVISED AMENDED REVISED AMENDED STATEMENT OF PURPOSE/ FISCAL NOTE Bill No. S1496