LEGISLATURE OF THE STATE OF IDAHO
Sixty-seventh Legislature Second Regular Session -2024
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 755
BY EDUCATION COMMITTEE
AN ACT1
RELATING TO EDUCATION; REPEALING SECTION 33 -1017, IDAHO CODE, RELATING2
TO THE SCHOOL SAFETY AND HEALTH REVOLVING LOAN AND GRANT FUND; AMEND -3
ING CHAPTER 10, TITLE 33, IDAHO CODE, BY THE ADDITION OF ANEW SECTION4
33 -1017, IDAHO CODE, TO ESTABLISH PROVISIONS REGARDING THE PUBLIC EDU -5
CATION FACILITIES FUND; AMENDING SECTION 33 -906, IDAHO CODE, TO REMOVE6
CODE REFERENCES; AMENDING SECTION 33 -1613, IDAHO CODE, TO REMOVE CODE7
REFERENCES; AND DECLARING AN EMERGENCY AND PROVIDING AN EFFECTIVE DATE.8
Be It Enacted by the Legislature of the State of Idaho:9
SECTION 1. That Section 33 -1017, Idaho Code, be, and the same is hereby10
repealed. 11
SECTION 2. That Chapter 10, Title 33, Idaho Code, be, and the same is12
hereby amended by the addition thereto of aNEW SECTION ,to be known and des -13
ignated as Section 33 -1017, Idaho Code, and to read as follows:14
33 -1017. PUBLIC EDUCATION FACILITIES FUND. (1) There is hereby cre -15
ated afund in the state treasury to be known as the public education facili -16
ties fund to which shall be credited all moneys that may be appropriated, ap -17
portioned, allocated, and paid back to such fund. Moneys in the fund shall18
be distributed as need -based grants to school districts for the purposes of19
financing the construction, remodel, and maintenance of school facilities20
directly related to the school district's core educational mission. No such21
funds shall be used for facilities with aprimary athletic purpose. Grants22
from such fund shall be distributed to school districts as provided in this23
section. The fund shall be managed by the state treasurer.24
(2)(a) Aschool district demonstrating financial need may apply to the25
state treasurer to receive grant funds from the public education facil -26
ities fund to finance the construction, remodel, or maintenance of pub -27
lic school facilities pursuant to subsection (1) of this section. An28
application for such grant shall be submitted to the state treasurer and29
shall include the following information:30
(i) Adetailed plan that outlines the location, design, plans,31
and specifications of the proposed school facility construction,32
remodel, or maintenance project that is the basis of the grant ap -33
plication;34
(ii) Details concerning any unsafe or unhealthy conditions as de -35
scribed in section 33 -1613, Idaho Code, that would be abated with36
the proceeds of the grant;37
(iii) The projected cost of the proposed school facilities38
project, which shall include any costs to finance the project if39
the funding were to be secured through abond levy pursuant to40
chapter 8, title 33, Idaho Code;41 2
(iv) Whether the applicant school district has failed to approve a1
bond levy for the proposed school facility project;2
(v) The financial condition of the applicant school district as3
shown by copies of its budgets for the preceding three (3) years;4
and5
(vi) Any other relevant details regarding the financial need of6
the applicant school district.7
(b) The state treasurer shall review all applications for grant funds8
pursuant to this section to determine whether to approve any such ap -9
plication. In doing so, the state treasurer shall consult with the10
state division of occupational and professional licenses, the state11
fire marshal, the state department of administration, the state board12
of education, the state department of education, and any other knowl -13
edgeable persons to promulgate rules, subject to legislative approval,14
prescribing ascoring matrix to determine which applicants have demon -15
strated financial need and shall have priority to receive grant funds.16
Such rules shall be based on the following criteria:17
(i) Whether an applicant school district has attempted to raise18
funds through abond levy for the proposed school facilities19
project that is the basis of the grant application;20
(ii) The unsafe or unhealthy conditions as described in section21
33 -1613, Idaho Code, that would be abated if the grant funds are22
approved;23
(iii) The projected cost of the proposed school facilities24
project;25
(iv) The financial condition of the applicant school district;26
and27
(v) The number of students in the district who will benefit from28
the proposed school facilities project.29
(c) The state treasurer shall prescribe forms for applying for the30
grant pursuant to this section.31
(3) To determine the maximum grant amount that may be approved for an32
applicant school district pursuant to this section, the dollar amount of the33
projected cost of the proposed facilities project shall be divided by the34
taxable value of the property in the school district in the state of Idaho35
with the highest taxable value as of the year immediately preceding the year36
in which the grant application is submitted. The resulting number shall then37
be multiplied against the same year's market value of the property within the38
boundaries of the school district applying for the grant. This amount shall39
then be subtracted from the projected cost of the proposed school facili -40
ties project, and the resulting number shall be the maximum allowable grant41
amount that may be approved for an applicant school district. The treasurer42
may partially approve an application for grant funds in an amount less than43
what was requested by the applicant school district.44
(4) If the state treasurer approves agrant application, the local45
board of trustees of the applicant school district, at the next election46
held pursuant to section 34 -106, Idaho Code, shall submit the question to47
the qualified electors of the school district to approve abond in the amount48
of the projected cost of the proposed school facilities project, less the49
grant amount approved for distribution to the applicant school district by50 3
the state treasurer. Notwithstanding any other provision of law to the con -1
trary, the school district may provide details concerning the approved grant2
funds in the ballot question presented to the voters. The applicant school3
district shall use the funds in accordance with the plan submitted pursuant4
to subsection (2)(a)(i) of this section.5
(5) All payments from the public education facilities fund shall be6
paid out directly to the school district by the state treasurer. Idle mon -7
eys in the public education facilities fund shall be invested by the state8
treasurer in the same manner as provided pursuant to section 67 -1210, Idaho9
Code. Interest earned on moneys in the fund shall be returned to the public10
education facilities fund.11
SECTION 3. That Section 33 -906, Idaho Code, be, and the same is hereby12
amended to read as follows:13
33 -906. BOND LEVY EQUALIZATION SUPPORT PROGRAM. (1) Pursuant to sec -14
tion 33 -906B, Idaho Code, school districts with avalue index below one (1)15
shall be eligible to receive additional state financial assistance for the16
cost of annual bond interest and redemption payments made on bonds passed on17
or after September 15, 2002. However, any school district with avalue index18
of less than one and one -half (1.5), shall receive no less than ten percent19
(10%) of the interest cost portion of the annual bond interest and redemption20
payment for bonds passed on or after September 15, 2002. The state depart -21
ment of education shall disburse such funds to school districts from mon -22
eys appropriated from the bond levy equalization fund. The department shall23
disburse the funds by no later than September 1of each year for school dis -24
tricts in which voters have approved the issuance of qualifying bonds by no25
later than January 1of that calendar year, and which are certifying aqual -26
ifying bond interest and redemption payment for the fiscal year in which the27
disbursement is made. For districts with avalue index below one (1), the28
percentage of each annual bond interest and redemption payment that is paid29
by the state shall be determined by dividing the difference between one (1)30
and the school district's value index by one (1).31
(2) For the purposes of this section, the annual bond interest and re -32
demption payment shall be determined by dividing the total payment amounts33
by the number of fiscal years in which payments are to be made. The inter -34
est cost portion of the annual bond interest and redemption payment shall be35
determined by dividing the total interest paid by the number of fiscal years36
in which payments are to be made. For school districts not qualifying for37
astate payment in the first year of the bond interest and redemption pay -38
ment schedule, due solely to the January 1eligibility deadline, the state39
department of education shall distribute an additional payment in the next40
fiscal year, in the amount of such funds that the school district would have41
otherwise qualified for in the current fiscal year.42
(3) The provisions of this section may not be utilized to refinance43
existing debt or subsidize projects previously subsidized by state grants,44
unless the existing debt being refinanced is abond passed on or after45
September 15, 2002; provided however, that any school district that has46
issued qualifying bonds prior to June 30, 2004, in conformance with this sec -47
tion shall not be deemed to be refinancing existing debt when the qualifying48
bonds are utilized to finance the acquisition of public school facilities49 4
previously leased or financed through means other than the issuance of gen -1
eral obligation bonds approved by atwo -thirds (2/3) vote at an election2
called for that purpose subject to subsection (5) of this section.3
(4) School districts shall annually report the status of all qualifying4
bonds to the state department of education by January 1of each year, includ -5
ing bonds approved by the voters, but not yet issued. Information submitted6
shall include the following:7
(a) The actual or estimated bond interest and redemption payment sched -8
ule;9
(b) Any qualifying bond that has been paid off;10
(c) Other information as may be required by the state department of edu -11
cation.12
(5) No school district project eligible for participation in the bond13
levy equalization support program shall be deemed ineligible for participa -14
tion due to that school district project's eligibility and prior participa -15
tion in the safe school facilities loan and grant program or the Idaho safe16
schools facilities program under section 33 -804A ,33 -1017 or 33 -1613, Idaho17
Code, provided that:18
(a) Such school district notifies the state department of education of19
its desire and eligibility to participate in the bond levy equalization20
support program; and21
(b) Such school district shall receive no state financial assistance22
for the project under the bond levy equalization support program until23
the amount to which it would otherwise have been entitled to receive24
shall equal the amounts received by the school district under the safe25
school facilities loan and grant program or the Idaho safe schools fa -26
cilities program under section 33 -804A ,33 -1017 or 33 -1613, Idaho Code.27
(6) Any school district formed as aresult of the consolidation of two28
(2) or more school districts that passes an eligible bond within three (3)29
years of the successful consolidation election shall participate in the bond30
levy equalization support program at the district's actual value index minus31
twenty -five hundredths (.25). This adjustment shall apply for the duration32
of the bond interest and redemption payment schedule. If aschool district33
advantaged by this subsection (6) deconsolidates either during the appli -34
cable bond interest and redemption payment schedule, or within athree (3)35
year period thereafter, each deconsolidated district shall, upon deconsol -36
idation, repay to the bond levy equalization fund all additional subsidies37
received pursuant to this subsection (6). The proportions owed by each de -38
consolidated district shall be determined by the proportion that each dis -39
trict's market value for assessment purposes bears to the whole.40
SECTION 4. That Section 33 -1613, Idaho Code, be, and the same is hereby41
amended to read as follows:42
33 -1613. SAFE PUBLIC SCHOOL FACILITIES REQUIRED. (1) Definition. As43
used in this section, "public school facilities" means the physical plant of44
improved or unimproved real property owned or operated by aschool district,45
acharter school, or aschool for children in any grades kindergarten through46
twelve (12) that is operated by the state of Idaho, including school build -47
ings, administration buildings, playgrounds, athletic fields, etc., used by48
schoolchildren or school personnel in the normal course of providing agen -49 5
eral, uniform and thorough system of public, free common schools, but does1
not include areas, buildings or parts of buildings closed from or not used2
in the normal course of providing ageneral, uniform and thorough system of3
public, free common schools. The aspects of asafe environment conducive4
to learning as provided by section 33 -1612, Idaho Code, that pertain to the5
physical plant used to provide ageneral, uniform and thorough system of pub -6
lic, free common schools are hereby defined as those necessary to comply with7
the safety and health requirements set forth in this section.8
(2) Inspection. It is the duty of the board of trustees of every school9
district and the governing body for other schools described in subsection10
(1) of this section at least once in every school year to require an indepen -11
dent inspection of the school district's or other entity's school facilities12
to determine whether those school facilities comply with codes addressing13
safety and health standards for facilities, including electrical, plumbing,14
mechanical, elevator, fire safety, boiler safety, life safety, structural,15
snow loading, and sanitary codes, adopted by or pursuant to the Idaho uni -16
form school building safety act, chapter 80, title 39, Idaho Code, adopted17
by the state fire marshal, adopted by generally applicable local ordinances,18
or adopted by rule of the state board of education and applicable to school19
facilities. The inspection shall be done pursuant to chapter 80, title 39,20
Idaho Code, or by an independent inspector professionally qualified to con -21
duct inspections under the applicable code. The results of the inspection22
shall be presented to the administrator of the division of occupational and23
professional licenses and the board of trustees or other governing body for24
its review and consideration.25
(3) Abatement required --Reporting. The board of trustees or other26
governing body shall require that the unsafe or unhealthy conditions be27
abated and shall instruct the school district's or other entity's person -28
nel to take necessary steps to abate unsafe or unhealthy conditions. The29
board of trustees or other governing body must issue areport in the same30
school year in which the inspections are made declaring whether any unsafe31
or unhealthy conditions identified have not been abated. The state board32
of education shall, by rule, provide for uniform reporting of unsafe and33
unhealthy conditions and for uniform reporting of abatement or absence of34
abatement of unsafe and unhealthy conditions. Copies of such reports shall35
be provided to the administrator of the division of occupational and profes -36
sional licenses and the board of trustees of the school district.37
(4) Costs of and plan of abatement. If the school district or other en -38
tity described in subsection (1) of this section can abate all unsafe or un -39
healthy conditions identified with the funds available to the school dis -40
trict or other entity, it shall do so, and it need not separately account for41
the costs of abatement nor segregate funds expended for abatement. If the42
school district or other entity cannot abate all unsafe or unhealthy con -43
ditions identified with the funds available to it, the board of trustees or44
other governing body shall direct that aplan of abatement be prepared. The45
plan of abatement shall provide atimetable that shall begin no later than46
the following school year and that shall provide for abatement with all de -47
liberate speed of unsafe and unhealthy conditions identified. The abatement48
plan shall be submitted to the administrator of the division of occupational49
and professional licenses. The school district or other entity shall imme -50 6
diately begin to implement its plan of abatement and must separately account1
for its costs of abatement of unsafe and unhealthy conditions and separately2
segregate funds for the abatement of unsafe and unhealthy conditions as re -3
quired by subsection (5) of this section.4
(5) Special provisions for implementation of plan of abatement.5
(a) Notwithstanding any other provisions of law concerning expenditure6
of lottery moneys distributed to the school district or other entity,7
all lottery moneys provided to the school district or other entity for8
aschool year in which the school district cannot abate unsafe or un -9
healthy conditions identified and not legally encumbered to other uses10
at the time and all lottery moneys for following school years shall be11
segregated and expended exclusively for abatement of unsafe and un -12
healthy conditions identified until all of the unhealthy and unsafe13
conditions identified are abated ,provided, if the school district14
has obtained aloan from the school safety and health revolving loan15
and grant fund, the provisions of section 33 -1017, Idaho Code, and the16
conditions of the loan shall determine the use of the school district's17
lottery moneys during the term of the loan .18
(b) If the lottery moneys referred to in paragraph (a) of this subsec -19
tion will, in the board of trustees' or other governing bodies' esti -20
mation, be insufficient to abate the unsafe and unhealthy conditions21
identified, the plan of abatement shall identify additional sources of22
funds to complete the abatement of the unsafe and unhealthy conditions.23
The board of trustees may choose from among the following sources, or24
from other sources of its own identification, but the plan of abatement25
must identify sufficient sources of funds for abatement.26
(i) If the school district is not levying under chapter 8, ti -27
tle 33, Idaho Code, at the maximum levies allowed by law for levies28
that may be imposed by aboard of trustees without an election, the29
board of trustees may increase any of those levies as allowed by30
law for the school year following the school year in which it was31
unable to abate unsafe or unhealthy conditions identified.32
(ii) If the school district is levying under chapter 8, title 33,33
Idaho Code, at the maximum levies allowed by law for levies that34
may be imposed by the board of trustees without an election; or,35
if after increasing those levies to the maximum levies allowed by36
law for levies that may be imposed by the board of trustees with -37
out an election, there will still be insufficient funds to abate38
unsafe or unhealthy conditions identified, the school district,39
after giving notice and conducting ahearing, may declare afinan -40
cial emergency and/or may apply for aloan or, if eligible, an in -41
terest grant from the school safety and health revolving loan and42
grant fund as provided in section 33 -1017, Idaho Code, to obtain43
funds to abate the unsafe or unhealthy conditions identified .44
(iii) Upon the declaration of afinancial emergency, the board of45
trustees shall have the power to impose areduction in force, to46
freeze some or all salaries in the school district, and/or to sus -47
pend some or all contracts that may be legally suspended upon the48
declaration of afinancial emergency; provided, that when aboard49
of trustees declares afinancial emergency ,or when adeclaration50 7
of afinancial emergency is imposed by the state treasurer pur -1
suant to section 33 -1017, Idaho Code, and there is areduction in2
force, some or all salaries are frozen, or some contracts are sus -3
pended, the payments to the school district under the foundation4
program of chapter 10, title 33, Idaho Code, and in particular the5
staff allowances under that chapter, shall not be reduced during6
the duration of the financial emergency as aresult of areduction7
in force, frozen salaries, or suspended salaries from what the8
staff allowance would be without the reduction in force, frozen9
salaries or suspended contracts.10
(c) All costs of abatement for aprogram implementing plans of abate -11
ment under subsection (5) of this section must be separately accounted12
for and documented with regard to abatement of each unsafe or unhealthy13
condition identified. Funds obtained under section 33 -1017, Idaho14
Code, must be used exclusively to abate unsafe or unhealthy conditions15
identified. Funds obtained pursuant to section 33 -1017, Idaho Code,16
in excess of funds necessary to abate unsafe or unhealthy conditions17
identified must be returned as provided in section 33 -1017, Idaho Code.18
Return of these funds shall be judicially enforceable as provided in19
section 33 -1017, Idaho Code.20
SECTION 5. An emergency existing therefor, which emergency is hereby21
declared to exist, this act shall be in full force and effect on and after22
July 1, 2024.23