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Prepared by Alan Miller.
Leger HB No. 1271
(KEYWORD, SUMMARY, AND DIGEST as amended by Senate committee
amendments)
SCHOOLS/FINANCE: Provides for allocations of certain local tax revenue to building
renovation and replacement purposes in certain school districts
DIGEST
Abstract: Provides for a school facilities preservation program in certain school districts;
provides for the dedication of specified local tax revenue to the program; provides
for various facets of the program covering maintenance, emergency repairs, and
capital replacement. Provides for operation of the program by the school board and
the Recovery School District with respect to schools each controls in the district.
Proposed law establishes a school facilities preservation program in certain school districts;
the program is applicable in school districts in which failing schools were transferred to the
jurisdiction of the Recovery School District (RSD) in accordance with a specified provision
of present law.
Proposed law provides for dedication of certain local tax revenues to the purposes of the
program; those tax revenues are referred to in this digest as "facility funds" and are the
proceeds of:
(1)Sales taxes at a rate equivalent to the rate being used as of July 1, 2014, by the school
board to pay school facility debt.
(2)Property taxes dedicated to capital outlay and authorized by voters after July 1, 2014,
to support the purposes of proposed law.
Proposed law prohibits the school board from refinancing or delaying repayment of bonds
that are outstanding on July 1, 2014.
Proposed law requires annual payment of a proportionate share of facility funds to the RSD.
The proportion is determined by the proportion of students in schools controlled by the RSD
to the total number of students in the school district. Provides relative to auditing of these
numbers.
Proposed law requires the school board and the RSD to each create a facilities office.
Dedicates a portion of facility funds to funding the office. Provides that to the extent such
funds are available, each facilities office shall:
(1)Inspect and monitor facilities to ensure that they are being maintained and that each
campus is in compliance with maintenance and inspection requirements. Provides
remedies available if a school is not properly maintained.
(2)Manage building leases, handle emergency repairs, and administer the revolving
facility loan fund and school facility repair and replacement accounts, all as provided
for by proposed law.
Proposed law authorizes a facilities office to provide additional facilities services to charter
schools, including emergency and capital repairs or replacements, procurement services, and
technical assistance, and to charge fees for such services pursuant to a written agreement
with the school.
Proposed law provides for the use of facility funds beyond those dedicated to funding the
facilities offices; provides different uses of such funds during the period prior to the
retirement of bonds of the school board that are outstanding on July 1, 2014, and the period
after retirement of such bonds. Page 2 of 3
Prepared by Alan Miller.
Prior to retirement of such bonds, proposed law provides that remaining facility funds shall
be used by the school board and RSD for emergency repairs and replacements in accordance
with policies each adopts for such purpose.
After retirement of such bonds, proposed law provides for dedication of remaining facility
funds to a revolving loan fund and to school facility accounts as provided below.
Proposed law requires the school board and the RSD to establish a revolving loan fund and
make loans from the fund to schools to finance emergency or planned capital repairs and
replacements. Requires annual deposits to the revolving loan funds for 20 years following
the retirement of the bonds outstanding on July 1, 2014. Provides for a per campus amount
to be deposited to the revolving loan fund. Per campus amounts differ for facilities that were
constructed prior to Sept. 1, 2005, and that have not received a renovation exceeding half the
value of the facility's replacement cost since that date and other schools.
Proposed law provides as follows with respect to the revolving loan fund and loans to
schools:
(1)Requires the adoption of polices governing eligible repairs and replacements,
emergency repairs, approval of loan applications, maintenance of a minimum balance
in the loan fund, and priorities for granting loans.
(2)Provides that a school's eligibility for a loan is in part determined by the balance in
its school facility account.
(3)Requires that loan applications from a charter school be approved by the charter
school's board prior to submission to the school board or the RSD.
(4)Loans shall be interest free except that a loan origination fee not exceeding 5% or
$30,000, whichever is less, may be charged.
(5)Schools must repay loans in accordance with the terms of the loan agreement from
funds to be deposited to its school facility account.
(6)Prohibits use of loans for operating expenses, maintenance, or insurance costs.
(7)If a school vacates a campus for which a loan is outstanding and another school
becomes the tenant in that campus, the new school assumes the debt.
Proposed law requires the operator of each school to establish and maintain a school facility
repair and replacement account for each campus. Provides for the remainder of per campus
amounts of facility funds to be deposited into such accounts. Provides as follows with
respect to such accounts:
(1)Requires that such funds remain segregated and used only for the benefit of the
particular campus. Provides that investment and interest earnings shall be credited
to the account. Requires audits of such accounts.
(2)Limits the use of such accounts to emergency or planned capital repairs and
replacements.
(3)Requires each school to develop a long-term capital plan for each campus.
(4)Provides for approval of nonemergency and emergency expenditures.
(5)Provides relative to loans to the accounts from a charter operator.
(6)Authorizes the school board or the RSD to terminate a school's control and use of the
account if the school does not follow applicable legal and policy requirements.
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Prepared by Alan Miller.
(7)Specifies that funds in an account are the property of the school board or the RSD
and that such accounts are campus specific and remain with the campus.
Proposed law prohibits the school board and the RSD from charging rent or any other fee to
charter schools for the occupancy, use, or repair of a campus it controls other than as
provided for in proposed law. Further, prohibits a school board or the Recovery School
District from requiring a charter school to expend funds on emergency or planned capital
repairs or replacements in excess of funds available for such purposes pursuant to proposed
law, except as provided by proposed law.
Requires the school board and the RSD to annually prepare and issue a public report on the
program and requires the RSD to submit its report to the State Board of Elementary and
Secondary Education.
Provides that proposed law shall not be construed as a limitation on any authority or
responsibility of a school board to seek or to expend funds on facility repairs, replacements,
and improvements as otherwise provided by present law.
Effective July 1, 2014.
(Adds R.S. 17:100.11)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Education to the
reengrossed bill
1. Prohibits a school board or the Recovery School District from requiring a
charter school to expend funds on emergency or planned capital repairs or
replacements in excess of funds available for such purposes pursuant to
proposed law, except as provided by proposed law.
2. Provides that proposed law shall not be construed as a limitation on any
authority or responsibility of a school board to seek or to expend funds on
facility repairs, replacements, and improvements as otherwise provided by
present law.