SB269INTRODUCED Page 0 EH7BC2-1 By Senator Orr RFD: Finance and Taxation Education First Read: 02-May-23 2023 Regular Session 1 2 3 4 5 6 EH7BC2-1 05/01/2023 KHF (F)KHF 2023-1718 Page 1 SYNOPSIS: This bill would establish the K-12 Capital Grant Program within the Office of the Lieutenant Governor to provide grants to local schools to assist with capital project, deferred maintenance, or technology needs. This bill would establish the process for grant applications, the purposes for which grant funds could be made, and the criteria used to evaluate grant proposals. In addition, this bill would establish the K-12 Capital Grant Program Fund in the State Treasury to receive appropriations made by the Legislature to implement the program. A BILL TO BE ENTITLED AN ACT Relating to education; to establish the K-12 Capital Grant Program within the Office of the Lieutenant Governor to provide grants to local schools to assist with capital project, deferred maintenance, or technology needs; to provide the purposes for which grant funds can be used; to establish the process for grant applications and approvals; to establish 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SB269 INTRODUCEDSB269 INTRODUCED Page 2 the K-12 Capital Grant Program Fund in the State Treasury; and to provide an effective date. BE IT ENACTED BY THE LEGISLATURE OF ALABAMA: Section 1. The following words and phrases, whenever used in this act, shall have the following meanings: (1) ELIGIBLE K-12 ENTITY. Any public school in operation for the current fiscal year providing appropriate elementary instruction and eligible to participate in allocations from the Advancement and Technology Fund pursuant to Section 29-9-4, Code of Alabama 1975. (2) GRANT. The award by the Office of the Lieutenant Governor of funds appropriated by the Legislature to an eligible K-12 entity. (3) GRANT PROPOSAL. A written plan for the expenditure of funds by an eligible K-12 entity, which meets one or more of the purposes outlined in Section 3, subject to the approval by the Office of the Lieutenant Governor and expended under the direction of the head of the eligible K-12 entity. Section 2. There is hereby created the Alabama K-12 Capital Grant Program within the Office of the Lieutenant Governor to award grants to local school systems to assist with capital project, deferred maintenance, or technology needs of the school systems. The Legislature may from time to time appropriate funds into the K-12 Capital Grant Program Fund hereby established within the State Treasury to facilitate the grant program. Provided, however, that no funds shall be withdrawn or expended except as budgeted and allocated in accordance with Article 4 of Chapter 4 of Title 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 SB269 INTRODUCEDSB269 INTRODUCED Page 3 41, Code of Alabama 1975, and only in the amounts provided by the Legislature in an appropriation bill. Any unencumbered and unexpended balance of this fund remaining at the end of any fiscal year shall not lapse or revert, but shall be carried forward for the purposes of this act until expended. Section 3. K-12 Capital Grants shall be made for only the following purposes: 1) To assist with the total cost of capital projects that will enhance the educational environment of students, including the construction, reconstruction, or renovation of permanent buildings containing classrooms, offices, libraries, laboratories, teaching facilities, training facilities, cafeterias, alternative schools, physical education facilities, including athletic facilities, facilities for the performing arts and arts education, together with tangible personal property that becomes a part of such facilities; 2) to provide funds to assist with the payment of existing debt service related to capital projects; 3) to assist with the total cost of necessary deferred maintenance for existing facilities; 4) to assist with the total cost of projects that will improve school security and safety; and 5) for technology and equipment for schools or students that will provide access expanded educational opportunities. Section 4. (a) The Office of the Lieutenant Governor shall evaluate grant proposals based upon the following criteria: (1) The total amount of state funds available for grants, with the maximum grant amount from state funds not to 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 SB269 INTRODUCEDSB269 INTRODUCED Page 4 exceed $5 million for any grant proposal; (2) The purposes for which the grant funds are intended; (3) The availability of local matching funds, so long as there is not a required match of more than 35% of the total cost of the project; and (4) The extent to which the grant proposals benefit eligible K-12 entities in each geographic area of the state, understanding the number of students and school systems located within each geographic area vary throughout the state. (b) The Office of the Lieutenant Governor shall utilize a sliding scale of matching requirements for grant proposals, taking into consideration the financial capacity of the eligible K-12 entity to provide matching funds. The office shall ensure that grant proposals from eligible K-12 entities with considerable populations of at-risk students receive priority consideration for review. (c) Any eligible K-12 entity receiving grant funds pursuant to this act shall file a report with the Office of the Lieutenant Governor within one-year following the receipt of the funds. The report shall indicate that expenditures are in accordance with the associated grant proposal and other state laws. Upon a finding that grant expenditures are not in accordance with these conditions, the Office of the Lieutenant Governor shall suspend the release of further grant funds to the entity. (d) The Department of the Examiners of Public Accounts shall examine compliance of the recipient K-12 entities with 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 SB269 INTRODUCEDSB269 INTRODUCED Page 5 the grant program. (e) The Office of the Lieutenant Governor shall design and distribute a grant proposal instrument to the State Department of Education to make available to eligible K-12 entities. The Office shall maintain electronic records of all grant proposals for all grants currently in effect and all completed grants and may promulgate reasonable rules necessary to implement the provisions of this act. Section 5. This act shall become effective immediately following its passage and approval by the Governor, or its otherwise becoming law. 113 114 115 116 117 118 119 120 121 122 123