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Regular Session, 2013
SENATE BILL NO. 67
BY SENATOR PETERSON
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
EDUCATION DEPARTMENT. Creates the Louisiana Statewide Education Facilities
Authority. (8/1/13)
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 public3
school facilities; to create and provide for the Louisiana Statewide Education4
Facilities Authority in the Department of Education; to provide for a board of5
commissioners and an advisory council and for their membership, powers, duties,6
and functions; to provide for program participation; to provide relative to ownership7
and control of public school facilities funded through the authority; to provide8
relative to 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. 67
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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, the14
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; compensation18
A. There is hereby created the Louisiana Statewide Education Facilities19
Authority within the Department of Education. The purpose of the authority is20
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. 67
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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
2013.7
(3) Appointing authorities shall ensure that the membership of the board8
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, 2013.19
§409.4. Powers; duties; functions; employees20
A. The authority shall:21
(1) Collaborate with city, parish, and other local public school boards to22
determine how best to meet their specific needs with regard to school facilities.23
(2) Consult with the Education Facilities Authority Advisory Council to24
develop a formula mechanism through which to assess and prioritize25
applications for funding for local projects submitted by city, parish, and other26
local public school boards based on best practices. Such formula shall, at a27
minimum, include the following:28
(a) Consideration for student health and safety, projected demographic29 SB NO. 67
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changes, adequate space needed to accommodate projected student enrollment,1
and the ability of the local school system to finance school repairs, renovations,2
and construction projects.3
(b) Provision to ensure that funds are allocated to city, parish, and other4
local public school systems throughout the state based upon the regions5
established by the State Board of Elementary and Secondary Education for the6
Regional Education Service Centers proportional to public school populations7
within each region.8
(c) Development of a means for determining the amount of local funds9
that shall be contributed by a city, parish, or other local public school system10
for each project funded by the authority. The authority may not fund any11
project at one hundred percent of the cost of the project, except on an12
emergency basis to repair school facilities damaged by fire, flood, wind, storm,13
earthquake, hurricane, or any other natural occurrence.14
(3) Establish design specifications for school facility repair, renovation,15
and construction projects approved for funding by the board including but not16
limited to energy efficiency and construction materials.17
(4) Review and evaluate existing funding mechanisms to support the18
construction and rehabilitation of schools in the state of Louisiana.19
(5)(a) Establish a revolving loan fund for the planning, design,20
construction, expansion, improvement or rehabilitation of publicly-owned21
facilities authorized under the provisions of this Part, which revolving loan fund22
shall be administered by the authority or any governmental agency, public23
corporation, public trust, or any other entity having authority to issue debt for24
or on behalf of the state.25
(b) Monies from a revolving loan fund may be used for the following26
purposes:27
(i) To provide financial assistance, to the extent authorized under state28
law, for the planning, design, construction, expansion, improvement and29 SB NO. 67
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rehabilitation of publicly-owned educational facilities.1
(ii) To provide financial assistance for the acquisition of immovable2
property or interests therein, only when such acquisition is integral to a project3
otherwise authorized by this Part.4
(iii) To provide loans at or below market interest rates, including5
interest-free loans, for a period not to exceed thirty years from the completion6
date of the construction of a project so financed including additional7
subsidization consisting of bond interest subsidies, forgiveness of principal,8
negative interest loans or grants, or any combination thereof.9
(iv) To guarantee or purchase insurance for debt obligations of city,10
parish, and other local public school boards or school districts, if the total11
proceeds of such debt obligation support a project eligible for assistance under12
this Part, and if such guarantee or purchase of insurance would improve credit13
market access or reduce the interest rate applicable for the obligation.14
(v) To provide a source of revenue or security for the payment of15
principal, interest, or premium on revenue or general obligation bonds or other16
evidences of indebtedness issued by the authority, or any governmental agency,17
public corporation, public trust, or any other entity having the authority to18
issue debt for or on behalf of the state, if the net proceeds of such debt19
instruments are deposited in the revolving loan fund, or are used to finance a20
project approved by the authority or are used to refund any obligation which21
finances a facility approved under this Part.22
(vi) To fund the administrative expenses of the authority as deemed23
necessary.24
(vii) Money not currently needed for the operation of the revolving loan25
fund or otherwise dedicated may be invested in an interest bearing account. All26
such interest earned on investments shall be credited to the revolving loan fund.27
(viii) The revolving loan fund shall be administered by the authority,28
which is authorized to enter into contracts and other agreements in connection29 SB NO. 67
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with the operation of the revolving loan fund, including but not limited to credit1
enhancement devices, guarantees, pledges, interest rate swap agreements,2
contracts and agreements with federal agencies, political subdivisions, public3
trusts, agencies or commissions of the state, and other parties to the extent4
necessary or convenient for the implementation of the revolving loan fund. The5
authority shall maintain full authority for the operation of the revolving loan6
fund.7
(ix) In connection with any bonds or other evidences of indebtedness8
purchased or owned by the authority under this Part, the authority may by suit,9
action, mandamus, or other proceedings, protect and enforce any covenant10
relating to and the security provided in connection with such bonds or11
indebtedness, and may by suit, action, mandamus, or other proceedings enforce12
and compel performance of all of the duties required to be performed by the13
governing body and officials of any borrower hereunder and in any proceedings14
authorizing the issuance of such bonds or other evidences of indebtedness.15
(6) Issue a report of its findings to the legislature by December 31, 2014.16
B. If the appropriate funds are available, the Louisiana Statewide17
Education Facilities Authority may:18
(1) Conduct a statewide assessment of public school facilities to assess19
and evaluate the quality and condition of existing public school facilities and20
compile a school-by-school inventory of facility deficiencies and needs.21
(2) Review applications from city, parish, and other local public school22
boards for funding for school facility repairs, renovations, and construction.23
(3) Employ a qualified executive director who shall have a background24
in construction, architecture, or finance to administer the functions,25
responsibilities, and policies of the authority and whose duties shall include, but26
not be limited to the following:27
(a) To manage and administer the daily functions of the authority and28
to perform all other functions necessary to the effective operation of the29 SB NO. 67
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authority.1
(b) To employ necessary staff to carry out the duties and functions of the2
authority. Such staff may include a financial director, a chief of architectural3
services, a liaison for local school systems, and any other necessary support4
staff.5
(4) Submit to the Joint Legislative Committee on the Budget the formula6
mechanism through which to assess and prioritize applications for funding for7
local projects submitted by city, parish, and other local public school boards8
based on best practices.9
(5) Issue an annual report to the legislature of the authority's activity in10
the previous budget year.11
§409.5. Education Facilities Advisory Council; creation; membership; duties;12
functions13
A. There is hereby created the Education Facilities Advisory Council14
comprised of thirteen members as follows:15
(1) The governor or his designee.16
(2) The chairman of the Senate Committee on Education or his designee.17
(3) The chairman of the House Committee on Education or his designee.18
(4) The chairman of the Senate Committee on Finance or his designee.19
(5) The chairman of the House Committee on Appropriations or his20
designee.21
(6) The executive director of the State Bond Commission or his designee.22
(7) The legislative auditor or his designee.23
(8) A representative from the Louisiana School Facility Manager's24
Association appointed by the association.25
(9) A representative from the Louisiana Association of School Business26
Officials appointed by the association.27
(10) A representative of the Louisiana Association of School28
Superintendents appointed by the association.29 SB NO. 67
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(11) A representative of the Louisiana Federation of Teachers appointed1
by the federation.2
(12) A representative of the Louisiana Association of Educators3
appointed by the association.4
(13) A representative of the Associated Professional Educators of5
Louisiana appointed by the association.6
B. The council shall provide advice and input to the Louisiana Statewide7
Education Facilities Authority board of commissioners to inform policy and8
funding decisions made by the board.9
§409.6. Program participation; ownership and control of facilities10
A. Participation by any city, parish, or other local public school board11
in any program implemented by the Louisiana Statewide Education Facilities12
Authority is voluntary.13
B. Each city, parish, and other local public school board shall retain14
ownership of and control over any school facility for which funding for repairs,15
renovation, or construction was obtained through the authority.16
C. The Louisiana Statewide Education Facilities Authority may serve in17
an oversight capacity over a project undertaken by a city, parish, or other local18
public school board to repair, renovate, or construct a school facility only to the19
extent that the project is funded through the authority.20
§409.7. Funding21
The authority may seek and accept gifts, grants, and donations, including22
federal funds, from any available source. Implementation of the provisions of23
this Part that require the expenditure of funds shall be subject to the24
availability of public or private funds, or both, for such purpose; however, no25
state general fund monies shall be used for this purpose.26
Section 2. R.S. 36:651(CC) is hereby enacted to read as follows:27
§651. Transfer of boards, commissions, departments, and agencies to Department of28
Education; boards, commissions, and agencies within Department of29 SB NO. 67
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Education1
* * *2
CC. The Louisiana Statewide Education Facilities Authority (R.S.3
17:409.1-409.7) is placed within the Department of Education and shall exercise4
and perform its powers, duties, functions, and responsibilities in the manner5
provided in R.S. 36:801.1.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Alan Miller.
DIGEST
Proposed law creates the La. Statewide Education Facilities Authority (the authority) in 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.
(4)Review and evaluate existing funding mechanisms for school construction or
rehabilitation projects.
(5)Establish and administer a revolving loan fund, monies from which may be used for
school construction projects.
(6)Issue a report to the legislature by Dec. 31, 2014.
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. SB NO. 67
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(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 creates the Education Facilities Advisory Council to provide advise and input
to the authority. The council shall be comprised of the following thirteen members:
(1)The governor or his designee.
(2)The chairman of the Senate Committee on Education or his designee.
(3)The chairman of the House Committee on Education or his designee.
(4)The chairman of the Senate Committee on Finance or his designee.
(5)The chairman of the House Committee on Appropriations or his designee.
(6) The executive director of the State Bond Commission or his designee.
(7) The legislative auditor or his designee.
(8) A representative from the Louisiana School Facility Manager's Association
appointed by the association.
(9) A representative from the Louisiana Association of School Business Officials
appointed by the association.
(10) A representative of the Louisiana Association of School Superintendents appointed
by the association.
(11) A representative of the Louisiana Federation of Teachers appointed by the
federation.
(12) A representative of the Louisiana Association of Educators appointed by the
association.
(13) A representative of the Associated Professional Educators of Louisiana appointed by
the association.
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.
Proposed law authorizes the authority to seek and accept gifts, grants, and donations,
including federal funds, from any available source. Provides that implementation of
proposed law provisions that require the expenditure of funds shall be subject to the
availability of public or private funds, or both, for such purpose. Specifies, however, that no
state general fund dollars shall be used for this purpose.
Effective August 1, 2013.
(Adds R.S. 17:409.1-409.7 and R.S. 36:651(CC))