Title 53A Chapter 21 Section 401

State System of Public Education
Public Education Capital Outlay Act
Section 401
School Building Revolving Account -- Access to the account.

            

53A-21-401.   School Building Revolving Account -- Access to the account.

            (1) (a) There is created within the Uniform School Fund a restricted account known as the "School Building Revolving Account" to provide short-term help to school districts to meet district needs for school building construction and renovation.

            (b) The state superintendent of public instruction shall administer the School Building Revolving Account in accordance with rules adopted by the State Board of Education.

            (2) The State Board of Education may not allocate funds from the School Building Revolving Account that exceed a school district’s bonding limit minus its outstanding bonds.

            (3) In order to receive money from the School Building Revolving Account, a school district shall:

            (a) levy a combined capital levy rate of at least .0024;

            (b) contract with the state superintendent of public instruction to repay the money, with interest at a rate established by the state superintendent, within five years of receipt, using future state capital outlay allocations, local revenues, or both;

            (c) levy sufficient ad valorem taxes under Section 11-14-310 to guarantee annual loan repayments, unless the state superintendent of public instruction alters the payment schedule to improve a hardship situation; and

            (d) meet any other condition established by the State Board of Education pertinent to the loan.

            (4) (a) The state superintendent shall establish a committee, including representatives from state and local education entities, to:

            (i) review requests by school districts for loans under this section; and

            (ii) make recommendations regarding approval or disapproval of the loan applications to the state superintendent.

            (b) If the committee recommends approval of a loan application under Subsection (4)(a)(ii), the committee’s recommendation shall include:

            (i) the recommended amount of the loan;

            (ii) the payback schedule; and

            (iii) the interest rate to be charged.


Amended by Chapter 30, 2011 General Session

Amended by Chapter 303, 2011 General Session