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Regular Session, 2010
SENATE BILL NO. 584
BY SENATOR PETERSON
EDUCATION DEPARTMENT. Creates the Louisiana Statewide Education Facilities
Authority. (8/15/10)
AN ACT1
To enact Part XII of Chapter 1 of Title 17 of the Louisiana Revised Statutes of 1950, to be2
comprised of R.S. 17:409.1 through 409.7, and R.S. 36:651(CC), relative to school3
facilities; to create and provide for the Louisiana Statewide Education Facilities4
Authority in the Department of Education; to provide for a board of commissioners5
and an advisory council and for their membership, powers, duties, and functions; to6
provide for program participation; to provide relative to ownership and control of7
public school facilities funded through the authority; to provide relative to8
implementation and funding; and to provide for related matters.9
Be it enacted by the Legislature of Louisiana:10
Section 1. Part XII of Chapter 1 of Title 17 of the Louisiana Revised Statutes of11
1950, to be comprised of R.S. 17:409.1 through 409.7, is hereby enacted to read as follows:12
PART XII. LOUISIANA STATEWIDE13
EDUCATION FACILITIES AUTHORITY14
§409.1. Louisiana Statewide Education Facilities Authority15
This Part may be referred to as the "Louisiana Statewide Education16
Facilities Authority Act".17 SB NO. 584
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§409.2. Legislative findings1
The legislature hereby finds and declares the following:2
(1) To provide an education for the children of Louisiana, the facilities3
in which those children learn should meet a standard of excellence.4
(2) The physical facilities in which students learn have a major impact5
on student achievement and success.6
(3) School building quality affects the quality of teaching.7
(4) Louisiana is ranked as one of the four lowest states in terms of per8
pupil spending on school facilities.9
(5) School building quality impacts the perception of a school's academic10
quality.11
(6) Improving school building quality in Louisiana should be a top12
priority.13
(7) By understanding the current situation regarding school facilities,14
the legislature and education officials are better equipped to determine the next15
steps.16
§409.3. Louisiana Statewide Education Facilities Authority; creation; board of17
commissioners; meetings; quorum; compensation; employees18
A. There is hereby created the Louisiana Statewide Education Facilities19
Authority within the Department of Education. The purpose of the authority20
is to provide funding, coordination, assistance, and oversight for the repair,21
renovation, and construction of public school facilities.22
B. The domicile of the authority shall be East Baton Rouge Parish.23
C.(1) The authority shall be governed by a board of commissioners24
comprised of seven members as follows:25
(a) Three members shall be appointed by the governor, subject to26
confirmation by the Senate, who shall have a background in construction,27
architecture, or finance.28
(b) Two members shall be appointed by the State Board of Elementary29 SB NO. 584
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and Secondary Education, subject to confirmation by the Senate, who shall have1
a background in construction, architecture, or finance.2
(c) The state superintendent of education or his designee.3
(d) One member shall be appointed by the Louisiana School Boards4
Association, subject to confirmation by the Senate.5
(2) Members shall be appointed to the board no later than October 1,6
2010.7
(3) Appointing authorities shall ensure that the membership of the8
board is balanced geographically and that the membership is diverse.9
D. A vacancy occurring on the board for any reason shall be filled in the10
same manner as the original appointment.11
E. Four members of the board shall constitute a quorum necessary for12
the transaction of official business. All official actions of the board shall require13
an affirmative vote of a majority of the commissioners present and voting at any14
meeting.15
F. Members of the board shall serve without compensation, but may be16
reimbursed for necessary and actual expenses incurred while fulfilling their17
official duties as a member of the board.18
G. The board shall meet and organize no later than October 16, 2010.19
§409.4. Powers; duties; functions20
A. The authority shall:21
(1) Collaborate with city, parish, and other local public school boards22
to determine how best to meet their specific needs with regard to school23
facilities.24
(2) Consult with the Education Facilities Authority Advisory Council to25
develop a formula mechanism through which to assess and prioritize26
applications for funding for local projects submitted by city, parish, and other27
local public school boards based on best practices. Such formula shall, at a28
minimum, include the following:29 SB NO. 584
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(a) Consideration for student health and safety, projected demographic1
changes, adequate space needed to accommodate projected student enrollment,2
and the ability of the local school system to finance school repairs, renovations,3
and construction projects.4
(b) Provision to ensure that funds are allocated to city, parish, and other5
local public school systems throughout the state based upon the regions6
established by the State Board of Elementary and Secondary Education for the7
Regional Education Services Centers proportional to public school populations8
within each region.9
(c) Development of a means for determining the amount of local funds10
that shall be contributed by a city, parish, or other local public school system11
for each project funded by the authority. The authority may not fund any12
project at one hundred percent of the cost of the project, except on an13
emergency basis to repair school facilities damaged by fire, flood, wind, storm,14
earthquake, hurricane, or any other natural occurrence.15
(3) Establish design specifications for school facility repair, renovation,16
and construction projects approved for funding by the board including, but not17
limited to, energy efficiency and construction materials.18
(4) Review and evaluate existing funding mechanisms to support the19
construction and or rehabilitation of schools in the state of Louisiana.20
(5)(a) Establish a revolving loan fund for the planning, design,21
construction, expansion, improvement or rehabilitation of publicly-owned22
facilities authorized under the provisions of this Part, which revolving loan fund23
shall be administered by the authority or any governmental agency, public24
corporation, public trust, or any other entity having authority to issue debt for25
or on behalf of the state.26
(b) Monies from a revolving loan fund may be used for the27
following purposes:28
(i) To provide financial assistance, to the extent authorized under29 SB NO. 584
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state law, for the planning, design, construction, expansion,1
improvement and rehabilitation of publicly-owned educational facilities.2
(ii) To provide financial assistance for the acquisition of3
immovable property or interests therein, only when such acquisition is4
integral to a project otherwise authorized by this Part.5
(iii) To provide loans at or below market interest rates, including6
interest-free loans, for a period not to exceed thirty years from the7
completion date of the construction of a project so financed including8
additional subsidization consisting of bond interest subsidies, forgiveness9
of principal, negative interest loans or grants, or any combination10
thereof.11
(iv) To guarantee or purchase insurance for debt obligations of12
city, parish, and other local public school boards or school districts, if13
the total proceeds of such debt obligation support a project eligible for14
assistance under this Part, and if such guarantee or purchase of15
insurance would improve credit market access or reduce the interest16
rate applicable for the obligation.17
(v) To provide a source of revenue or security for the payment of18
principal, interest, or premium on revenue or general obligation bonds19
or other evidences of indebtedness issued by the authority, or any20
governmental agency, public corporation, public trust, or any other21
entity having the authority to issue debt for or on behalf of the state, if22
the net proceeds of such debt instruments are deposited in the revolving23
loan fund, or are used to finance a project approved by the authority or24
are used to refund any obligation which finances a facility approved25
under this Part.26
(vi) To fund the administrative expenses of the authority as27
deemed necessary.28
(vii) Money not currently needed for the operation of the29 SB NO. 584
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revolving loan fund or otherwise dedicated may be invested in an1
interest bearing account. All such interest earned on investments shall2
be credited to the revolving loan fund.3
(viii) The revolving loan fund shall be administered by the4
authority, which is authorized to enter into contracts and other5
agreements in connection with the operation of the revolving loan fund,6
including but not limited to credit enhancement devices, guarantees,7
pledges, interest rate swap agreements, contracts and agreements with8
federal agencies, political subdivisions, public trusts, agencies or9
commissions of the state, and other parties to the extent necessary or10
convenient for the implementation of the revolving loan fund. The11
authority shall maintain full authority for the operation of the revolving12
loan fund.13
(ix) In connection with any bonds or other evidences indebtedness14
purchased or owned by the authority under this Part, the authority may15
by suit, action, mandamus, or other proceedings, protect and enforce16
any covenant relating to and the security provided in connection with17
such bonds or indebtedness, and may by suit, action, mandamus, or18
other proceedings enforce and compel performance of all of the duties19
required to be performed by the governing body and officials of any20
borrower hereunder and in any proceedings authorizing the issuance of21
such bonds or other evidences of indebtedness.22
(6) Issue a report of its findings to the legislature by December 31, 2011.23
B. If the appropriate funds are available, the Louisiana Statewide24
Education Facilities Authority may:25
(1) Conduct a statewide assessment of public school facilities to assess26
and evaluate the quality and condition of existing public school facilities and27
compile a school-by-school inventory of facility deficiencies and needs.28
(2) Review applications from city, parish, and other local public school29 SB NO. 584
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boards for funding for school facility repairs, renovations, and construction.1
(3) Employ a qualified executive director who shall have a background2
in construction, architecture, or finance to administer the functions,3
responsibilities, and policies of the authority and whose duties shall include, but4
not be limited to the following:5
(a) Manage and administer the daily functions of the authority and6
perform all other functions necessary to the effective operation of the authority.7
(b) Employ necessary staff to carry out the duties and functions of the8
authority. Such staff may include a financial director, a chief of architectural9
services, a liaison for local school systems, and any other necessary support10
staff.11
(4) Submit to the Joint Legislative Committee on the Budget the formula12
mechanism through which to assess and prioritize applications for funding for13
local projects submitted by city, parish, and other local public school boards14
based on best practices.15
(5) Issue an annual report to the legislature of the authority's activity in16
the previous budget year.17
§409.5. Education Facilities Advisory Council; creation; membership; duties;18
functions19
A. There is hereby created the Education Facilities Advisory Council20
comprised of thirteen members as follows:21
(1) The governor or his designee.22
(2) The chairman of the Senate Committee on Education or his designee.23
(3) The chairman of the House Committee on Education or his designee.24
(4) The chairman of the Senate Committee on Finance or his designee.25
(5) The chairman of the House Committee on Appropriations or his26
designee.27
(6) The executive director of the State Bond Commission or his designee.28
(7) The legislative auditor or his designee.29 SB NO. 584
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(8) A representative from the Louisiana School Facility Manager's1
Association appointed by the association.2
(9) A representative from the Louisiana Association of School Business3
Officials appointed by the association.4
(10) A representative of the Louisiana Association of School5
Superintendents appointed by the association.6
(11) A representative of the Louisiana Federation of Teachers appointed7
by the federation.8
(12) A representative of the Louisiana Association of Educators9
appointed by the association.10
(13) A representative of the Associated Professional Educators of11
Louisiana appointed by the association.12
B. The council shall provide advice and input to the Louisiana Statewide13
Education Facilities Authority board of commissioners to inform policy and14
funding decisions made by the board.15
.§409.6. Program participation; ownership and control of facilities16
A. Participation by any city, parish, or other local public school board17
in any program implemented by the Louisiana Statewide Education Facilities18
Authority is voluntary.19
B. Each city, parish, and other local public school board shall retain20
ownership of and control over any school facility for which funding for repairs,21
renovation, or construction was obtained through the authority.22
C. The Louisiana Statewide Education Facilities Authority may serve23
in an oversight capacity over a project undertaken by a city, parish, or other24
local public school board to repair, renovate, or construct a school facility only25
to the extent that the project is funded through the authority.26
§409.7. Funding27
In addition to funds that may be provided by the legislature, the28
authority may seek and accept gifts, grants, and donations, including federal29 SB NO. 584
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funds, from any available source. Implementation of the provisions of this Part1
that require the expenditure of funds shall be subject to the availability of2
public or private funds, or both, for such purposes.3
Section 2. R.S. 36:651(CC) is hereby enacted to read as follows:4
§651. Transfer of boards, commissions, departments, and agencies to Department of5
Education; boards, commissions, and agencies within Department of6
Education7
* * *8
CC. The Louisiana Statewide Education Facilities Authority (R.S.9
17:409.1-409.7) is placed within the Department of Education and shall exercise10
and perform its powers, duties, functions, and responsibilities in the manner11
provided in R.S. 36:801.1.12
The original instrument was prepared by Nancy Vicknair. The following
digest, which does not constitute a part of the legislative instrument, was
prepared by Linda Nugent.
DIGEST
Peterson (SB 584)
Proposed law creates the La. Statewide Education Facilities Authority (the authority) within
the executive branch of the Dept. of Education to provide funding, coordination, assistance,
and oversight for the repair, renovation, and construction of public school facilities.
Provides for an uncompensated board of commissioners, for an executive director, and for
an advisory council to provide advice and input to the authority.
Provides that the board shall be comprised of seven members as follows:
(1)Five members – three appointed by the governor, two appointed by BESE – with a
background in construction, architecture, or finance – subject to Senate confirmation.
(2)The state superintendent of education or his designee.
(3)One member appointed by the La. School Boards Association, subject to Senate
confirmation.
Requires the authority to do the following:
(1)Collaborate with school boards to determine how best to meet needs.
(2)Consult with the advisory council to develop a formula and mechanism to assess and
prioritize applications for funding local projects.
(3)Establish design specifications for school construction projects approved for funding
by the board. SB NO. 584
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(4)Review and evaluate existing funding mechanisms for school construction or
rehabilitation projects.
(5)Establish a revolving loan fund, monies from which may be used for school
construction projects.
(6)Issue a report to the legislature by Dec. 31, 2011.
Authorizes the authority to do the following if appropriate funds are available:
(1)Conduct a statewide assessment of public school facilities and compile school-by-
school inventory of deficiencies and needs.
(2)Review applications from school boards for facility funding.
(3)Employ an executive director who shall administer the functions of the authority and
employ staff.
(4)Submit the formula and mechanism that the authority is required to develop to the
Joint Legislative Committee on the Budget for approval.
(5)Issue an annual report to the legislature of its activity in the previous budget year.
Proposed law authorizes the authority to seek and accept gifts, grants, donations, including
federal funds, from any available source.
Proposed law provides that participation by a school board in an authority program is
voluntary. Provides that a school board retains ownership of and control over any school
facility for which funding is obtained through the authority and that the authority may
exercise oversight over a project only to the extent that the project is funded through the
authority.
Effective August 15, 2010.
(Adds R.S. 17:409.1 - 409.7 and R.S. 36:651(CC))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Education to the
original bill.
1. Removes requirement that the means for determining the amount of local
funds to be contributed to a project emphasize the local school system's
ability to provide local funding.
Senate Floor Amendments to engrossed bill.
1. Establish a revolving loan fund for school construction projects.