2000 Legislation
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SENATE BILL NO. 1496, As Amended – School facilities, financing

SENATE BILL NO. 1496, As Amended

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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

Bill Text


 S1496
                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-fifth Legislature                  Second Regular Session - 2000
                                                                        
                                                                        
                                       IN 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's  classroom  student-teacher  ratios  certified  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 33-1002 45., 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 modern office building 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  repeal  by-laws  bylaws  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.

Amendment


 AS1496
                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-fifth Legislature                  Second Regular Session - 2000
                                                                        
                                                                        
                                                     Moved 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's classroom  student-teacher  ratios  certified  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 33-1002 45., 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 modern office building 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 repeal by-laws bylaws 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 / Fiscal Impact


                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