2002 Legislation
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SENATE BILL NO. 1431 – School safety/hlth fund, grants

SENATE BILL NO. 1431

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S1431aa........................................................by EDUCATION
SCHOOL SAFETY AND HEALTH REVOLVING LOAN FUND - Amends existing law to
extend conditions for applications to the School Safety and Health
Revolving Loan and Grant Fund to include authority to draw upon the fund
for grants for indebtedness incurred for the abatement of unsafe or
unhealthy conditions; and to provide for the method for determination of
present value.
                                                                        
02/11    Senate intro - 1st rdg - to printing
02/12    Rpt prt - to Educ
02/14    Rpt out - to 14th Ord
02/20    Rpt out amen - to engros
02/21    Rpt engros - 1st rdg - to 2nd rdg as amen
02/22    2nd rdg - to 3rd rdg as amen
03/04    3rd rdg as amen - PASSED - 34-0-1
      AYES -- Andreason, Boatright, Branch(Bartlett), Brandt, Bunderson,
      Burtenshaw, Cameron, Darrington, Davis, Deide, Dunklin, Frasure,
      Geddes, Goedde, Hill, Ingram, Ipsen, Keough, King-Barrutia, Little,
      Lodge, Marley, Noh, Richardson, Risch, Sandy, Schroeder, Sims,
      Sorensen, Stegner, Stennett, Thorne, Wheeler, Williams
      NAYS -- None
      Absent and excused -- Hawkins
    Floor Sponsor - Deide
    Title apvd - to House
03/05    House intro - 1st rdg - to Educ
03/11    Rpt out - rec d/p - to 2nd rdg
03/12    2nd rdg - to 3rd rdg
03/13    3rd rdg - PASSED - 64-0-6
      AYES -- Aikele, Barraclough, Barrett, Bedke, Bell, Bieter, Block,
      Bolz, Bradford, Bruneel, Callister, Campbell, Clark, Collins, Cuddy,
      Deal, Denney, Ellis, Ellsworth, Eskridge, Field(13), Field(20),
      Gagner, Gould, Hadley, Hammond, Harwood, Henbest, Higgins, Hornbeck,
      Jaquet, Jones, Kellogg, Kendell, Kunz, Lake, Loertscher, Mader,
      Martinez, McKague, Meyer, Mortensen, Moyle, Pearce, Pomeroy,
      Raybould, Ridinger, Roberts, Robison, Sali, Schaefer, Sellman,
      Shepherd, Smith(33), Smith(23), Smylie, Stevenson, Stone, Tilman,
      Trail, Wheeler, Wood, Young, Mr. Speaker
      NAYS -- None
      Absent and excused -- Black, Boe, Crow, Langford, Montgomery,
      Pischner
    Floor Sponsor - Denney
    Title apvd - to Senate
03/13    To enrol
03/14    Rpt enrol - Pres signed
    Sp signed
03/15    To Governor
03/21    Governor signed
         Session Law Chapter 157
         Effective: 03/21/02

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  Second Regular Session - 2002
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1431
                                                                        
                                   BY EDUCATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE SCHOOL SAFETY AND HEALTH REVOLVING LOAN AND GRANT FUND; AMEND-
  3        ING SECTION 33-1017, IDAHO CODE, TO EXTEND CONDITIONS FOR  APPLICATION  TO
  4        INCLUDE AUTHORITY TO DRAW UPON THE SCHOOL SAFETY AND HEALTH REVOLVING LOAN
  5        AND  GRANT  FUND FOR GRANTS FOR INDEBTEDNESS INCURRED FOR THE ABATEMENT OF
  6        UNSAFE OR UNHEALTHY CONDITIONS, TO PROVIDE FOR THE METHOD  FOR  DETERMINA-
  7        TION  OF PRESENT VALUE, TO REVISE THE TERMINATION DATE AND TO MAKE A TECH-
  8        NICAL CORRECTION.
                                                                        
  9    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 10        SECTION 1.  That Section 33-1017, Idaho Code, be, and the same  is  hereby
 11    amended to read as follows:
                                                                        
 12        33-1017.  SCHOOL SAFETY AND HEALTH REVOLVING LOAN AND GRANT FUND. (1) Fund
 13    created.  There  is hereby created a fund in the state treasury to be known as
 14    the school safety and health revolving loan and grant fund to which  shall  be
 15    credited  all moneys that may be appropriated, apportioned, allocated and paid
 16    back to that fund. Moneys in this fund shall be used exclusively  as  provided
 17    in this section, except that moneys in this fund shall be returned to the bud-
 18    get stabilization fund as provided in this section.
 19        (2)  Approval  of  loan or grant. A school district that does not have the
 20    financial resources to abate unsafe or unhealthy conditions identified  pursu-
 21    ant  to  section 33-1613, Idaho Code, and which is eligible to seek additional
 22    funds under subsection (5)(b)(ii) of section 33-1613, Idaho Code, may apply to
 23    the state treasurer for a loan and, if eligible, a grant from the  safety  and
 24    health  revolving  loan   and  grant fund. A school district that has borrowed
 25    money from the Idaho safe school facilities loan program may apply for a grant
 26    of interest from the safety and health revolving loan and grant fund. The loan
 27    or grant shall be approved if the school district's application meets the cri-
 28    teria of section 33-1613, Idaho Code, and of this section.  If  the  board  of
 29    examiners  finds that existing and anticipated loans or grants under this sec-
 30    tion have depleted the school safety and health revolving loan and grant  fund
 31    to  an  extent that the fund does not have available sufficient moneys to loan
 32    to an eligible school district, the board  of  examiners  shall  declare  that
 33    additional  loans   may  be made from the budget stabilization fund in section
 34    57-814, Idaho Code, up to any limits of the use of that fund provided by stat-
 35    ute or declared by the governor in time of general revenue shortfalls or major
 36    disaster.
 37        (3)  Conditions of loan or grant -- Repayment of loan.
 38        (a)  The school  district's  application  shall  identify  the  unsafe  or
 39        unhealthy conditions that would be abated with the proceeds of the loan or
 40        grant  and, if a loan, shall propose a method of and timetable for abating
 41        those conditions and for repaying the loan.
 42        (b)  The state treasurer shall review the application to determine whether
 43        the application is for abatement of  unsafe  or  unhealthy  conditions  as
                                                                        
                                           2
                                                                        
  1        described  in  section  33-1613,  Idaho Code, and to determine whether the
  2        estimated costs of abatement and proposed plan of abatement are is reason-
  3        able. In reviewing the application, the state treasurer may call upon  the
  4        assistance  of  the state division of building safety, the state fire mar-
  5        shal, the state department of administration, the state  board  of  educa-
  6        tion, the state department of education, or other knowledgeable persons to
  7        determine  whether conditions identified to be abated meet the criteria of
  8        section 33-1613, Idaho Code, and to determine whether the plan  of  abate-
  9        ment,  estimated  costs of abatement and proposed methods of abatement are
 10        reasonable. The state treasurer shall process the application for  a  loan
 11        or grant within thirty-five (35) days after its receipt.
 12             (i)   If  the state treasurer determines that the application has not
 13             identified unsafe or unhealthy conditions  as  described  in  section
 14             33-1613, Idaho Code, the state treasurer shall return the application
 15             with  a written statement that contains reasons why the loan or grant
 16             application does not meet the criteria of this section and of section
 17             33-1613, Idaho Code.
 18             (ii)  If the state treasurer  determines  that  the  application  has
 19             identified  unsafe  or  unhealthy  conditions as described in section
 20             33-1613, Idaho Code, the state treasurer shall then determine whether
 21             the application has proposed reasonable  methods  of  and  reasonable
 22             estimates  of  costs  of abatement. The state treasurer shall approve
 23             the plan of abatement if the school district has proposed  a  reason-
 24             able  method of abatement and if its estimated costs of abatement are
 25             reasonable; otherwise, the state treasurer shall return the  applica-
 26             tion  with  a written statement how the application can be amended to
 27             qualify.
 28        (c)  If the application is for a loan, the state treasurer may accept  the
 29        school  district's  proposed method of and timetable for repaying the loan
 30        or may impose reasonable alternative or substitute methods of and  timeta-
 31        bles  for  repayment consistent with this subsection, which alternative or
 32        substitute methods shall be binding on the school district. At a  minimum,
 33        the  school  district  shall be required to repay in each fiscal year suc-
 34        ceeding the year of the loan an amount no less than the  lottery  proceeds
 35        that  the school district would otherwise receive for that fiscal year and
 36        additional foundation support moneys, if any, accruing as a result  of  an
 37        initial overestimation of state average daily attendance support units and
 38        later  distribution of residual amounts resulting from fewer support units
 39        than originally estimated. The loan shall provide for  the  school  safety
 40        and  health  revolving  loan  and  grant fund, or the budget stabilization
 41        fund, to the extent that it was the source of the loan, to  intercept  the
 42        lottery  proceeds that would otherwise go to the school district until the
 43        loan is fully repaid. In addition, the state treasurer may impose  reason-
 44        able  fiscal  conditions  on  the  school district during the term of loan
 45        repayment including, but not limited to, restrictions in use of  otherwise
 46        unrestricted  school district moneys to assist in repayment of the loan or
 47        in abatement of unsafe or  unhealthy  conditions,  the  declaration  of  a
 48        financial  emergency  during  some  or all of the term of repayment of the
 49        loan, or interception by the school safety and health revolving  loan  and
 50        grant  fund  of  a  portion of the state foundation program payments under
 51        chapter 10, title 33, Idaho Code, that would otherwise go  to  the  school
 52        district  to repay the loan. The initial term of the loan shall not exceed
 53        ten (10) years, but may be extended in the  state  treasurer's  discretion
 54        for another ten (10) years.
 55        (d)  If  a loan is approved, the state treasurer shall establish a line of
                                                                        
                                           3
                                                                        
  1        credit for the school district and monthly reimburse the  school  district
  2        for  costs incurred to abate the unsafe or unhealthy conditions identified
  3        as the reason for the loan. The state treasurer may  prescribe  forms  and
  4        procedures for administration of this line of credit.
  5        (e)  A  school  district  may repay its loan or any portion of its loan in
  6        advance at any time without penalty.
  7        (4)  Interest. Loans to school districts under  this  section  shall  bear
  8    interest  at the average rate of interest that would be available to the state
  9    treasury were the loan funds retained in the state treasury, as determined  by
 10    the state treasurer.
 11        (5)  Certification  of  loan  funds  spent. If a school district obtains a
 12    loan pursuant to this section, the board of trustees shall certify  the  total
 13    expenditures  of  loaned  funds  that  were actually spent to abate unsafe and
 14    unhealthy conditions.
 15        (6)  Excess funds. If any funds loaned pursuant to this section  were  not
 16    spent  on  abatement of unsafe and unhealthy conditions, they must be returned
 17    to the school safety and health loan and grant fund or the  budget  stabiliza-
 18    tion fund, as the case may be. This subsection shall be judicially enforceable
 19    by  the  state treasurer, and any amounts due for repayment under this subsec-
 20    tion may be recovered by offset from  state  foundation  program  moneys  that
 21    would otherwise be paid to the school district.
 22        (7)  Eligibility for grant. After complying with the provisions of section
 23    33-1613,  Idaho  Code,  school districts that borrow money from the Idaho safe
 24    schools facilities loan program pursuant to section 33-804A,  Idaho  Code,  or
 25    that  refinance  through  the Idaho safe schools facilities loan program loans
 26    for money borrowed under this section or that finance abatement of unsafe  and
 27    unhealthy  conditions  through  indebtedness pursuant to chapter 11, title 33,
 28    Idaho Code, may apply for a grant from the school safety and health  revolving
 29    loan  and  grant fund to pay for eligible interest costs incurred on loan pro-
 30    ceeds used to abate unsafe and unhealthy conditions. If the school  district's
 31    application for a grant is accepted, then the school district will qualify for
 32    a  grant  of  the  present  value of the qualifying percentage of the interest
 33    costs of the loan associated with abating unsafe and unhealthy  conditions  as
 34    follows:
 35        (a)  If  the  school  district  is participating in the Idaho safe schools
 36        facilities loan program, within seven (7) days after the  approved  school
 37        district  receives  loan  proceeds  from the Idaho safe schools facilities
 38        loan fund, the state treasurer shall provide funds to the school  district
 39        in  the  amount  of  the qualifying percentage of the present value of the
 40        interest costs associated with abating unsafe and unhealthy conditions.
 41        (b)  If a school district has obtained a loan from the school  health  and
 42        safety  revolving  loan and grant fund and has refinanced its loan through
 43        the Idaho safe schools facilities  program  and  prepays  the  outstanding
 44        principal  of  its loan, the school district shall be eligible for a grant
 45        of the qualifying percentage of  the  present  value  of  the  outstanding
 46        interest costs associated with the prepaid principal.
 47        (c)  If  the  school  district  has  financed  the  abatement of unsafe or
 48        unhealthy conditions through indebtedness pursuant to  chapter  11,  title
 49        33,  Idaho  Code, within seven (7) days after the school district receives
 50        bond proceeds, the state treasurer shall provide funds to the school  dis-
 51        trict  in  the amount of the qualifying percentage of the present value of
 52        the interest costs associated with abating  unsafe  and  unhealthy  condi-
 53        tions.
 54        (8)  Present  value.  The  present  value of the interest costs associated
 55    with money borrowed under the Idaho safe schools facilities loan program shall
                                                                        
                                           4
                                                                        
  1    be calculated by the state treasurer using a method of equal annual loan  pay-
  2    ments and a discount rate of the interest rate prescribed in subsection (4) of
  3    this  section  on  the  date  that the school district receives funds from the
  4    Idaho safe schools facilities loan fund.  The  present  value  of  the  unpaid
  5    interest  costs  for  principal  prepayments  to  the school safety and health
  6    revolving loan and grant fund shall be calculated by the  state  treasurer  by
  7    summing  the  unpaid interest that would be paid without the principal prepay-
  8    ment and discounting it at the interest rate prescribed in subsection  (4)  of
  9    this section on the date that the treasurer receives the prepayment. The pres-
 10    ent  value  of  the  interest costs associated with money borrowed by a school
 11    district in a bond issue shall be calculated by the state treasurer using  the
 12    school  district's  actual schedule for making interest  payments on the bonds
 13    and discounting those interest payments by the  interest  rate  prescribed  in
 14    subsection  (4)  of this section on the date that the school district receives
 15    funds from the bond issue.
 16        (9)  Qualifying percentage. The  qualifying  percentage  of  the  interest
 17    costs of a school district applying for a grant of interest under this section
 18    shall  be  determined  as follows: For a school district borrowing money under
 19    the Idaho safe schools facilities loan program  or  refinancing  a  loan  made
 20    under this section with money borrowed under the Idaho safe schools facilities
 21    program  or  incurring  bonded  indebtedness for safe and healthy schools, the
 22    state treasurer shall express:
 23        (a)  the total of the bond and plant  facilities  levies  imposed  by  the
 24        school  district  (including  the levy for which the application is made),
 25        and
 26        (b)  the total levies imposed by the school district (including  the  levy
 27        for which the application is made)
 28    as  a  fraction of assessed value for the most recent assessment against which
 29    the school district's existing levies are made.
 30        The qualifying percentage of interest granted under this section shall  be
 31    the higher of the amounts shown in the following tables:
 32                      Table 1 - Bond and Plant Facilities Levies
 33    Bond Plus Plant Facilities Levy                          Qualifying Percentage
 34    Less than .0019............................................................10%
 35    More than .0019 and less than .0029........................................20%
 36    More than .0029 and less than .0039........................................30%
 37    More than .0039............................................................40%
 38                                Table 2 - Total Levies
 39    Total Levy                                               Qualifying Percentage
 40    Less than .0060.............................................................0%
 41    More than .0060 and less than .0072........................................25%
 42    More than .0072 and less than .0084........................................50%
 43    More than .0084 and less than .0096........................................75%
 44    More than .0096...........................................................100%
 45        (10) Interest  costs for abatement of unsafe and unhealthy conditions. The
 46    interest costs for abatement of unsafe and unhealthy conditions shall be  cal-
 47    culated  by  determining  the percentage of the loan proceeds or prepayment of
 48    the loan that will be used to abate unsafe and unhealthy conditions.
 49        (11) Procedures. The state treasurer may prescribe forms for applying  for
 50    a  loan  or  grant under this section. No actions taken under this section are
 51    contested cases or rulemaking subject to chapter 52, title 67, Idaho Code, and
 52    none of the contested case or rulemaking procedures of chapter 52,  title  67,
 53    Idaho Code, apply to actions taken under this section.
 54        (12) The  state  treasurer's  authority  to accept applications for and to
 55    approve grants of interest from the school safety and  health  revolving  loan
                                                                        
                                           5
                                                                        
  1    and grant fund shall cease on July 1, 20043.

Amendment


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  Second Regular Session - 2002
                                                                        
                                                                        
                                                     Moved by    Deide               
                                                                        
                                                     Seconded by Thorne              
                                                                        
                                                                        
                                       IN THE SENATE
                             SENATE AMENDMENT TO S.B. NO. 1431
                                                                        
                                                                        
  1                                AMENDMENT TO THE BILL
  2        On page 5 of the printed bill, following line 1, insert:
  3        "SECTION 2.  An emergency existing therefor,  which  emergency  is  hereby
  4    declared to exist, this act shall be in full force and effect on and after its
  5    passage and approval.".
                                                                        
  6                                 CORRECTION TO TITLE
  7        On  page  1, in line 8, following "CORRECTION" insert: "; AND DECLARING AN
  8    EMERGENCY".

Engrossed Bill (Original Bill with Amendment(s) Incorporated)


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  Second Regular Session - 2002
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                              SENATE BILL NO. 1431, As Amended
                                                                        
                                   BY EDUCATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE SCHOOL SAFETY AND HEALTH REVOLVING LOAN AND GRANT FUND; AMEND-
  3        ING SECTION 33-1017, IDAHO CODE, TO EXTEND CONDITIONS FOR  APPLICATION  TO
  4        INCLUDE AUTHORITY TO DRAW UPON THE SCHOOL SAFETY AND HEALTH REVOLVING LOAN
  5        AND  GRANT  FUND FOR GRANTS FOR INDEBTEDNESS INCURRED FOR THE ABATEMENT OF
  6        UNSAFE OR UNHEALTHY CONDITIONS, TO PROVIDE FOR THE METHOD  FOR  DETERMINA-
  7        TION  OF PRESENT VALUE, TO REVISE THE TERMINATION DATE AND TO MAKE A TECH-
  8        NICAL CORRECTION; AND DECLARING AN EMERGENCY.
                                                                        
  9    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 10        SECTION 1.  That Section 33-1017, Idaho Code, be, and the same  is  hereby
 11    amended to read as follows:
                                                                        
 12        33-1017.  SCHOOL SAFETY AND HEALTH REVOLVING LOAN AND GRANT FUND. (1) Fund
 13    created.  There  is hereby created a fund in the state treasury to be known as
 14    the school safety and health revolving loan and grant fund to which  shall  be
 15    credited  all moneys that may be appropriated, apportioned, allocated and paid
 16    back to that fund. Moneys in this fund shall be used exclusively  as  provided
 17    in this section, except that moneys in this fund shall be returned to the bud-
 18    get stabilization fund as provided in this section.
 19        (2)  Approval  of  loan or grant. A school district that does not have the
 20    financial resources to abate unsafe or unhealthy conditions identified  pursu-
 21    ant  to  section 33-1613, Idaho Code, and which is eligible to seek additional
 22    funds under subsection (5)(b)(ii) of section 33-1613, Idaho Code, may apply to
 23    the state treasurer for a loan and, if eligible, a grant from the  safety  and
 24    health  revolving  loan   and  grant fund. A school district that has borrowed
 25    money from the Idaho safe school facilities loan program may apply for a grant
 26    of interest from the safety and health revolving loan and grant fund. The loan
 27    or grant shall be approved if the school district's application meets the cri-
 28    teria of section 33-1613, Idaho Code, and of this section.  If  the  board  of
 29    examiners  finds that existing and anticipated loans or grants under this sec-
 30    tion have depleted the school safety and health revolving loan and grant  fund
 31    to  an  extent that the fund does not have available sufficient moneys to loan
 32    to an eligible school district, the board  of  examiners  shall  declare  that
 33    additional  loans   may  be made from the budget stabilization fund in section
 34    57-814, Idaho Code, up to any limits of the use of that fund provided by stat-
 35    ute or declared by the governor in time of general revenue shortfalls or major
 36    disaster.
 37        (3)  Conditions of loan or grant -- Repayment of loan.
 38        (a)  The school  district's  application  shall  identify  the  unsafe  or
 39        unhealthy conditions that would be abated with the proceeds of the loan or
 40        grant  and, if a loan, shall propose a method of and timetable for abating
 41        those conditions and for repaying the loan.
 42        (b)  The state treasurer shall review the application to determine whether
 43        the application is for abatement of  unsafe  or  unhealthy  conditions  as
                                                                        
                                           2
                                                                        
  1        described  in  section  33-1613,  Idaho Code, and to determine whether the
  2        estimated costs of abatement and proposed plan of abatement are is reason-
  3        able. In reviewing the application, the state treasurer may call upon  the
  4        assistance  of  the state division of building safety, the state fire mar-
  5        shal, the state department of administration, the state  board  of  educa-
  6        tion, the state department of education, or other knowledgeable persons to
  7        determine  whether conditions identified to be abated meet the criteria of
  8        section 33-1613, Idaho Code, and to determine whether the plan  of  abate-
  9        ment,  estimated  costs of abatement and proposed methods of abatement are
 10        reasonable. The state treasurer shall process the application for  a  loan
 11        or grant within thirty-five (35) days after its receipt.
 12             (i)   If  the state treasurer determines that the application has not
 13             identified unsafe or unhealthy conditions  as  described  in  section
 14             33-1613, Idaho Code, the state treasurer shall return the application
 15             with  a written statement that contains reasons why the loan or grant
 16             application does not meet the criteria of this section and of section
 17             33-1613, Idaho Code.
 18             (ii)  If the state treasurer  determines  that  the  application  has
 19             identified  unsafe  or  unhealthy  conditions as described in section
 20             33-1613, Idaho Code, the state treasurer shall then determine whether
 21             the application has proposed reasonable  methods  of  and  reasonable
 22             estimates  of  costs  of abatement. The state treasurer shall approve
 23             the plan of abatement if the school district has proposed  a  reason-
 24             able  method of abatement and if its estimated costs of abatement are
 25             reasonable; otherwise, the state treasurer shall return the  applica-
 26             tion  with  a written statement how the application can be amended to
 27             qualify.
 28        (c)  If the application is for a loan, the state treasurer may accept  the
 29        school  district's  proposed method of and timetable for repaying the loan
 30        or may impose reasonable alternative or substitute methods of and  timeta-
 31        bles  for  repayment consistent with this subsection, which alternative or
 32        substitute methods shall be binding on the school district. At a  minimum,
 33        the  school  district  shall be required to repay in each fiscal year suc-
 34        ceeding the year of the loan an amount no less than the  lottery  proceeds
 35        that  the school district would otherwise receive for that fiscal year and
 36        additional foundation support moneys, if any, accruing as a result  of  an
 37        initial overestimation of state average daily attendance support units and
 38        later  distribution of residual amounts resulting from fewer support units
 39        than originally estimated. The loan shall provide for  the  school  safety
 40        and  health  revolving  loan  and  grant fund, or the budget stabilization
 41        fund, to the extent that it was the source of the loan, to  intercept  the
 42        lottery  proceeds that would otherwise go to the school district until the
 43        loan is fully repaid. In addition, the state treasurer may impose  reason-
 44        able  fiscal  conditions  on  the  school district during the term of loan
 45        repayment including, but not limited to, restrictions in use of  otherwise
 46        unrestricted  school district moneys to assist in repayment of the loan or
 47        in abatement of unsafe or  unhealthy  conditions,  the  declaration  of  a
 48        financial  emergency  during  some  or all of the term of repayment of the
 49        loan, or interception by the school safety and health revolving  loan  and
 50        grant  fund  of  a  portion of the state foundation program payments under
 51        chapter 10, title 33, Idaho Code, that would otherwise go  to  the  school
 52        district  to repay the loan. The initial term of the loan shall not exceed
 53        ten (10) years, but may be extended in the  state  treasurer's  discretion
 54        for another ten (10) years.
 55        (d)  If  a loan is approved, the state treasurer shall establish a line of
                                                                        
                                           3
                                                                        
  1        credit for the school district and monthly reimburse the  school  district
  2        for  costs incurred to abate the unsafe or unhealthy conditions identified
  3        as the reason for the loan. The state treasurer may  prescribe  forms  and
  4        procedures for administration of this line of credit.
  5        (e)  A  school  district  may repay its loan or any portion of its loan in
  6        advance at any time without penalty.
  7        (4)  Interest. Loans to school districts under  this  section  shall  bear
  8    interest  at the average rate of interest that would be available to the state
  9    treasury were the loan funds retained in the state treasury, as determined  by
 10    the state treasurer.
 11        (5)  Certification  of  loan  funds  spent. If a school district obtains a
 12    loan pursuant to this section, the board of trustees shall certify  the  total
 13    expenditures  of  loaned  funds  that  were actually spent to abate unsafe and
 14    unhealthy conditions.
 15        (6)  Excess funds. If any funds loaned pursuant to this section  were  not
 16    spent  on  abatement of unsafe and unhealthy conditions, they must be returned
 17    to the school safety and health loan and grant fund or the  budget  stabiliza-
 18    tion fund, as the case may be. This subsection shall be judicially enforceable
 19    by  the  state treasurer, and any amounts due for repayment under this subsec-
 20    tion may be recovered by offset from  state  foundation  program  moneys  that
 21    would otherwise be paid to the school district.
 22        (7)  Eligibility for grant. After complying with the provisions of section
 23    33-1613,  Idaho  Code,  school districts that borrow money from the Idaho safe
 24    schools facilities loan program pursuant to section 33-804A,  Idaho  Code,  or
 25    that  refinance  through  the Idaho safe schools facilities loan program loans
 26    for money borrowed under this section or that finance abatement of unsafe  and
 27    unhealthy  conditions  through  indebtedness pursuant to chapter 11, title 33,
 28    Idaho Code, may apply for a grant from the school safety and health  revolving
 29    loan  and  grant fund to pay for eligible interest costs incurred on loan pro-
 30    ceeds used to abate unsafe and unhealthy conditions. If the school  district's
 31    application for a grant is accepted, then the school district will qualify for
 32    a  grant  of  the  present  value of the qualifying percentage of the interest
 33    costs of the loan associated with abating unsafe and unhealthy  conditions  as
 34    follows:
 35        (a)  If  the  school  district  is participating in the Idaho safe schools
 36        facilities loan program, within seven (7) days after the  approved  school
 37        district  receives  loan  proceeds  from the Idaho safe schools facilities
 38        loan fund, the state treasurer shall provide funds to the school  district
 39        in  the  amount  of  the qualifying percentage of the present value of the
 40        interest costs associated with abating unsafe and unhealthy conditions.
 41        (b)  If a school district has obtained a loan from the school  health  and
 42        safety  revolving  loan and grant fund and has refinanced its loan through
 43        the Idaho safe schools facilities  program  and  prepays  the  outstanding
 44        principal  of  its loan, the school district shall be eligible for a grant
 45        of the qualifying percentage of  the  present  value  of  the  outstanding
 46        interest costs associated with the prepaid principal.
 47        (c)  If  the  school  district  has  financed  the  abatement of unsafe or
 48        unhealthy conditions through indebtedness pursuant to  chapter  11,  title
 49        33,  Idaho  Code, within seven (7) days after the school district receives
 50        bond proceeds, the state treasurer shall provide funds to the school  dis-
 51        trict  in  the amount of the qualifying percentage of the present value of
 52        the interest costs associated with abating  unsafe  and  unhealthy  condi-
 53        tions.
 54        (8)  Present  value.  The  present  value of the interest costs associated
 55    with money borrowed under the Idaho safe schools facilities loan program shall
                                                                        
                                           4
                                                                        
  1    be calculated by the state treasurer using a method of equal annual loan  pay-
  2    ments and a discount rate of the interest rate prescribed in subsection (4) of
  3    this  section  on  the  date  that the school district receives funds from the
  4    Idaho safe schools facilities loan fund.  The  present  value  of  the  unpaid
  5    interest  costs  for  principal  prepayments  to  the school safety and health
  6    revolving loan and grant fund shall be calculated by the  state  treasurer  by
  7    summing  the  unpaid interest that would be paid without the principal prepay-
  8    ment and discounting it at the interest rate prescribed in subsection  (4)  of
  9    this section on the date that the treasurer receives the prepayment. The pres-
 10    ent  value  of  the  interest costs associated with money borrowed by a school
 11    district in a bond issue shall be calculated by the state treasurer using  the
 12    school  district's  actual schedule for making interest  payments on the bonds
 13    and discounting those interest payments by the  interest  rate  prescribed  in
 14    subsection  (4)  of this section on the date that the school district receives
 15    funds from the bond issue.
 16        (9)  Qualifying percentage. The  qualifying  percentage  of  the  interest
 17    costs of a school district applying for a grant of interest under this section
 18    shall  be  determined  as follows: For a school district borrowing money under
 19    the Idaho safe schools facilities loan program  or  refinancing  a  loan  made
 20    under this section with money borrowed under the Idaho safe schools facilities
 21    program  or  incurring  bonded  indebtedness for safe and healthy schools, the
 22    state treasurer shall express:
 23        (a)  the total of the bond and plant  facilities  levies  imposed  by  the
 24        school  district  (including  the levy for which the application is made),
 25        and
 26        (b)  the total levies imposed by the school district (including  the  levy
 27        for which the application is made)
 28    as  a  fraction of assessed value for the most recent assessment against which
 29    the school district's existing levies are made.
 30        The qualifying percentage of interest granted under this section shall  be
 31    the higher of the amounts shown in the following tables:
 32                      Table 1 - Bond and Plant Facilities Levies
 33    Bond Plus Plant Facilities Levy                          Qualifying Percentage
 34    Less than .0019............................................................10%
 35    More than .0019 and less than .0029........................................20%
 36    More than .0029 and less than .0039........................................30%
 37    More than .0039............................................................40%
 38                                Table 2 - Total Levies
 39    Total Levy                                               Qualifying Percentage
 40    Less than .0060.............................................................0%
 41    More than .0060 and less than .0072........................................25%
 42    More than .0072 and less than .0084........................................50%
 43    More than .0084 and less than .0096........................................75%
 44    More than .0096...........................................................100%
 45        (10) Interest  costs for abatement of unsafe and unhealthy conditions. The
 46    interest costs for abatement of unsafe and unhealthy conditions shall be  cal-
 47    culated  by  determining  the percentage of the loan proceeds or prepayment of
 48    the loan that will be used to abate unsafe and unhealthy conditions.
 49        (11) Procedures. The state treasurer may prescribe forms for applying  for
 50    a  loan  or  grant under this section. No actions taken under this section are
 51    contested cases or rulemaking subject to chapter 52, title 67, Idaho Code, and
 52    none of the contested case or rulemaking procedures of chapter 52,  title  67,
 53    Idaho Code, apply to actions taken under this section.
 54        (12) The  state  treasurer's  authority  to accept applications for and to
 55    approve grants of interest from the school safety and  health  revolving  loan
                                                                        
                                           5
                                                                        
  1    and grant fund shall cease on July 1, 20043.
                                                                        
  2        SECTION  2.  An  emergency  existing  therefor,  which emergency is hereby
  3    declared to exist, this act shall be in full force and effect on and after its
  4    passage and approval.

Statement of Purpose / Fiscal Impact


	             STATEMENT OF PURPOSE
                        RS 12055

	The purpose of this legislation is to amend 33-1017 (School 
Safety and Health Revolving Loan and Grant Fund) to allow for the 
use of proceeds from a bond sale, as well as, a school plant 
facilities levy. Additionally, it provides for a sunset date of 
June 30, 2003.


                         FISCAL IMPACT



	Subject to appropriation, school districts accessing the 
provisions of this act will save funds due to less interest costs.



Contact
Name:	Senator Darrel Deide
Phone:	332-1328
        Representative Lawrence Denney
        332-1244

STATEMENT OF PURPOSE/FISCAL NOTE		S 1431 

REVISED          REVISED          REVISED     REVISED