53A-21-401. Capital Outlay Loan Program -- School Building Revolving Account --
Access to the account.
(1) There is created:
(a) the "Capital Outlay Loan Program" to provide:
(i) short-term help to school districts to meet district needs for school building
construction and renovation; and
(ii) assistance to charter schools to meet school building construction and renovation
needs; and
(b) a nonlapsing "School Building Revolving Account" administered within the Uniform
School Fund by the state superintendent of public instruction 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 monies from the 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 monies, 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.
(5) (a) There is established within the School Building Revolving Account the Charter
School Building Subaccount administered by the State Board of Education, in consultation with
the State Charter School Board, in accordance with rules adopted by the State Board of
Education.
(b) The Charter School Building Subaccount shall consist of:
(i) money appropriated to the subaccount by the Legislature;
(ii) money received from the repayment of loans made from the subaccount; and
(iii) interest earned on monies in the subaccount.
(c) The state superintendent of public instruction shall make loans to charter schools
from the Charter School Building Subaccount to pay for the costs of:
(i) planning expenses;
(ii) constructing or renovating charter school buildings;
(iii) equipment and supplies; or
(iv) other start-up or expansion expenses.
(d) Loans to new charter schools or charter schools with urgent facility needs may be
given priority.
(6) (a) The State Board of Education shall establish a committee, which shall include
individuals who have expertise or experience in finance, real estate, and charter school
administration, one of whom shall be nominated by the governor to:
(i) review requests by charter schools for loans under this section; and
(ii) make recommendations regarding approval or disapproval of the loan applications to
the State Charter School Board and the State Board of Education.
(b) If the committee recommends approval of a loan application under Subsection
(6)(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.
(c) The committee members may not:
(i) be a relative, as defined in Section 53A-1a-518, of a loan applicant; or
(ii) have a pecuniary interest, directly or indirectly, with a loan applicant or any person or
entity that contracts with a loan applicant.
(7) The State Board of Education, in consultation with the State Charter School Board,
shall approve all loans to a charter school under this section.
(8) The term of a loan to a charter school under this section may not exceed five years.
(9) The State Board of Education may not approve loans to charter schools under this
section that exceed a total of $2,000,000 in any year.
Renumbered and Amended by Chapter 236, 2008 General Session
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Last revised: Thursday, May 28, 2009