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ACT No. 543
Regular Session, 2014
HOUSE BILL NO. 1271 (Substitute for House Bill No. 941 by Representative Leger)
BY REPRESENTATIVE LEGER
AN ACT1
To enact R.S. 17:100.11, relative to public school facilities in certain public school districts;2
to provide relative to the allocation and dedication of certain local tax revenues to3
the replacement, repair, and improvement of such facilities; to provide for powers,4
duties, and responsibilities of the school boards of affected school districts,5
individual schools, and the Recovery School District with respect to such facilities6
and funds; to require the establishment of certain offices and accounts; to establish7
procedures governing the allocation and use of funds; to provide with respect to the8
allocation of funds to charter schools in the district and to the duties and9
responsibilities of the school board and the Recovery School District with respect to10
public facilities occupied or used by charter schools; to provide for fees and charges;11
to provide relative to outstanding obligations of school boards and future obligations;12
and to provide for related matters.13
Be it enacted by the Legislature of Louisiana:14
Section 1. R.S. 17:100.11 is hereby enacted to read as follows:15
ยง100.11. School facilities preservation; certain districts16
A.(1) There is hereby established for each school district as defined in17
Subsection H of this Section a school facilities preservation program. The program18
shall be funded, structured, and operated as provided in this Section.19
(2) Proceeds of the following taxes, hereafter referred to in this Section as20
"facility funds", shall be used to fund the school facilities preservation program:21
(a) The proceeds of local sales taxes at a rate equivalent to the rate being22
used as of July 1, 2014, by the school board to pay school facility debt.23 ENROLLEDHB NO. 1271
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(b) The proceeds from property taxes dedicated to capital outlay and1
authorized by voters after July 1, 2014, to support the purposes of this Section.2
(3) The proceeds of property taxes dedicated by voters for payment of bonds3
held by the school board and in existence as of July 1, 2014, shall not be considered4
and not otherwise administered as facility funds under the provisions of this Section.5
Additionally, the school board shall not refinance bonds that are outstanding on July6
1, 2014, nor shall it take any action that would delay the retirement of such bonds.7
It is the intention of this Paragraph that such bonds be paid in full no later than the8
dates specified by the payment schedule in existence on July 1, 2014.9
B. Each year, the school board shall transfer to the Recovery School District10
a proportion of facility funds equal to the proportion of students attending school on11
campuses that are in the school district and that are controlled by the Recovery12
School District to the total number of students attending school on campuses that are13
in the school district and that are controlled by either the school board or the14
Recovery School District, based on the February first total student enrollment counts.15
The amounts, by source, of facility funds, the amount retained by the school board,16
the amount transferred to the Recovery School District, and the per campus student17
counts used in calculations pursuant to this Subsection shall be included as a18
schedule to the annual financial statements of the school board, audited by its19
certified public accountant, and submitted to the state Department of Education, all20
in a manner substantially similar to that provided in R.S. 17:1990(C)(2)(a)(iii)(dd).21
C.(1) The school board and the Recovery School District shall each create22
a facilities office. From annual facility funds each receives, it shall use fifteen23
dollars per pupil attending school at a campus it controls in the school district or24
whatever lesser amount is available to fund the facilities office. The school board25
and the Recovery School District may adjust this per pupil amount on an annual26
basis by the lesser of the most recent annual increase in the Consumer Price Index27
published by the United States Department of Labor or in the minimum foundation28
program funds.29 ENROLLEDHB NO. 1271
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(2) To the extent that facility funds are available pursuant to Paragraph (1)1
of this Subsection, the facilities office shall perform the following functions:2
(a) Inspect and monitor facilities to ensure that they are being maintained3
and that each campus is in compliance with maintenance and inspection4
requirements. If a school is not properly maintaining its campus as required in the5
lease agreement, the remedies available to the school board or Recovery School6
District as applicable are to suspend or terminate use of the school facility account7
funds as provided in Paragraph (F)(10) of this Section or to perform necessary8
maintenance, repair, or replacement work and charge the school the costs of such9
work plus a service fee. Prior to performing any such work, the school board or10
Recovery School District shall give formal notice to the school and provide an11
opportunity for it to remedy the deficiency, all in accordance with policies governing12
such procedures.13
(b) Manage building leases, handle emergency repairs, and administer the14
revolving facility loan fund and school facility repair and replacement accounts, all15
as provided for by this Section.16
(3) The facilities office may provide additional facility services to charter17
schools, including emergency and capital repairs or replacements, procurement18
services, and technical assistance, and charge fees for such services pursuant to a19
written agreement with the school.20
D. Until all bonds referenced in Paragraph (A)(3) of this Section are retired,21
the school board and the Recovery School District shall use facility funds remaining22
after the allocation provided for in Subsection C of this Section for emergency23
repairs and replacements in accordance with policies each adopts for such purpose.24
In the school year following the retirement of such bonds, the school board and the25
Recovery School District shall transfer unused funds received pursuant to this26
Subsection to its respective revolving loan fund, as is provided for in Subsection E27
of this Section.28
E.(1) The school board and the Recovery School District shall each establish29
a revolving loan fund and make loans from the fund to schools that are in campuses30 ENROLLEDHB NO. 1271
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controlled by each respectively and that are in the school district to finance1
emergency or planned capital repairs and replacements, all in accordance with this2
Subsection.3
(2) Beginning with the year following the retirement of bonds referenced in4
Paragraph (A)(3) of this Section and continuing for twenty years, the school board5
and the Recovery School District shall annually deposit facility funds available, after6
funds are allocated to the facilities office as provided in Subsection C of this Section7
and in the amount established by this Paragraph or whatever lesser amount is8
available, into its respective revolving loan fund. The annual amount to be deposited9
by the school board or the Recovery School District shall be the sum of all per10
campus contributions. A per campus contribution shall be one hundred fifty dollars11
per student attending school at that campus or seventeen percent of the per-campus12
share of facility funds, whichever is greater, if the school is in a facility that was13
constructed prior to September 1, 2005, and that has not received a renovation14
exceeding half the value of the facility's replacement cost since that date, or three15
hundred dollars per student attending school at that campus or thirty-five percent of16
the per-campus share of facility funds, whichever is greater, for all other schools.17
The "replacement cost" of a facility that was constructed prior to September 1, 2005,18
means the replacement cost of the facility as of July 1, 2014.19
(3) The school board and the Recovery School District shall each establish20
policies governing the following: eligible repairs and replacements, how schools are21
to handle emergency repairs, approval of loan applications, maintenance of a22
minimum balance in the loan fund, priorities for granting loans, and any other aspect23
of administering the loan fund and loans made from it.24
(4) A school shall be eligible for a loan only if the balance in its school25
facility account is below seventy-five thousand dollars. However, if a school will26
use funds from the school facility account to fund a portion of a repair or27
replacement project, it may receive a loan for that project if its budgeted28
expenditures for the project will result in a balance in its school facility account29
below seventy-five thousand dollars.30 ENROLLEDHB NO. 1271
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(5) A loan application from a charter school shall be approved by the charter1
school's board prior to submission to the school board or the Recovery School2
District, whichever entity controls the campus, for approval.3
(6) Loans shall be interest-free; however, the school board and the Recovery4
School District may charge a loan origination fee not exceeding five percent of the5
value of the loan or thirty thousand dollars per loan, whichever is less.6
(7) Schools shall repay loans in accordance with the terms of the loan7
agreement from funds to be deposited to its school facility account, as provided for8
in Subsection F of this Section.9
(8) No school may use proceeds of a loan for operating expenses,10
maintenance, or insurance costs.11
(9) If a school vacates a campus for which a loan is outstanding and another12
school becomes the tenant in that campus, the new school shall assume the debt.13
F.(1) The operator of each school in the school district shall establish and14
maintain a school facility repair and replacement account for each campus; such15
accounts are referred to in this Section as "school facility accounts".16
(2) Beginning with the year following the retirement of all bonds referenced17
in Paragraph (A)(3) of this Section, the school board and the Recovery School18
District shall annually deposit into each school facility account the per-campus share19
of facility funds less any portion of such funds deposited, in accordance with20
Subsection E of this Section, into the revolving loan fund.21
(3) Except as provided in Paragraph (9) of this Subsection, the school facility22
accounts shall be segregated, and funds therein shall not be commingled with other23
school funds. Funds in such an account shall be used only for the benefit of the24
campus for which it was established. The school board and Recovery School District25
shall each adopt investment policies governing school facility accounts. The26
provisions of R.S. 33:2955 and R.S. 49:321 are applicable to such accounts.27
Investment and interest earnings generated on funds in a school facility account shall28
be credited to the account and shall not be transferred to another account or used for29
purposes other than those allowable for funds in the school facility account. A30 ENROLLEDHB NO. 1271
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school facility account shall be audited annually in accordance with monitoring1
policies developed by the school board and the Recovery School District, which shall2
include verification that the proper amounts were deposited into the school facility3
account and invested and used according to law and policy.4
(4) The funds in the school facility account may be used only for emergency5
or planned capital repairs and replacements as outlined in law and in policies6
developed by the school board and the Recovery School District.7
(5) Each school shall develop, for each campus, a long-term capital plan that8
meets minimum requirements established by the school board or Recovery School9
District as applicable. Such plans shall include but need not be limited to identifying10
key building components and when they will likely need to be repaired or replaced11
and the estimated cost of doing so.12
(6) Nonemergency expenditures from the school facility account shall be13
approved in advance by the charter school's board if the school is a charter school,14
and the school board or Recovery School District, as applicable, and shall reflect the15
appropriate priorities as reflected in the school's long-term capital plan developed16
pursuant to Paragraph (5) of this Subsection.17
(7) The school board and the Recovery School District shall each develop18
policies defining an emergency and the protocol a school must follow in expending19
funds in the school facility account for emergency repairs.20
(8) A school shall comply with all applicable school board or Recovery21
School District policies regarding projects funded through its school facility account22
including but not limited to disadvantaged business enterprises policies.23
(9) A charter operator may make a loan to a school facility account. The24
loan shall be made only from excess fund balances or other funds not designated for25
instructional purposes from the school holding the school facility account or another26
school under the same operator. All such loans shall be interest-free. If the school27
tenant of a campus with an outstanding loan to the school facility account changes,28
the new school tenant must pay back the loan under the same terms as the prior29
tenant. If a school is lending money to the school facility account, the loan can be30 ENROLLEDHB NO. 1271
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repaid with funds from the school facility account, just as if the school had borrowed1
money from the revolving loan fund, as provided for in Subsection E of this Section.2
(10) If a school does not follow the legal and policy requirements for the3
school facility account, the remedy available to the school board or Recovery School4
District as applicable is to suspend or terminate a school's authority to use and5
control the funds in the school facility account. Prior to any such action, the school6
board or Recovery School District shall give formal notice to the school and provide7
an opportunity for it to remedy the deficiency, all in accordance with policies8
governing such procedures.9
(11) Funds in a school facility account are the property of the school board10
or the Recovery School District, whichever entity controls the campus. A school11
facility account is campus-specific and remains with the campus should the school12
tenant of the campus change or should the school tenant no longer occupy the13
campus.14
G.(1) Neither the school board nor the Recovery School District shall charge15
rent or any other fee to a charter school in the school district for the occupancy, use,16
or repair of a campus it controls other than as authorized by this Section. The17
Recovery School District or the school board may, however, require a charter school18
to pay for maintenance, insurance, utilities, and other costs related to the operation19
and upkeep of a campus, as outlined in the lease agreement for occupancy of the20
campus. Except as provided in this Paragraph, this Section does not authorize a21
school board or the Recovery School District to require a charter school to expend22
funds on emergency or planned capital repairs or replacements in excess of funds23
available for such purposes pursuant to this Section.24
(2) The school board and the Recovery School District shall annually prepare25
and issue a public report that includes all of the following: the amount of funds in26
its respective revolving facility loan fund and all loans made therefrom, the amount27
of facility funds distributed to each campus by the Recovery School District or the28
school board, the amount allocated to fund the respective facility office of each, and29
the cost and type of each emergency repair made by the facilities office if applicable.30 ENROLLEDHB NO. 1271
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The Recovery School District shall submit its report to the State Board of1
Elementary and Secondary Education.2
(3) This Section shall not be construed as a limitation on any authority or3
responsibility of a school board to seek or to expend funds on facility repairs,4
replacements, and improvements as otherwise provided by law including but not5
limited to the provisions of R.S. 17:59, 17:81, and 17:98.6
H. For purposes of this Section, the following terms shall have the meaning7
ascribed:8
(1) "Campus" means a school building owned by the school board and9
controlled by either the school board or the Recovery School District and all10
facilities otherwise part of the school, recognized as part of the facilities, and11
typically available to the school, its students, faculty, and staff. A single campus12
may include more than one neighboring school building. Generally, a single campus13
includes all facilities sharing a single legal address. In some cases, more than one14
school may occupy a single campus, and in other cases, a single school may occupy15
more than one campus.16
(2) "Per campus share of facility funds" means an amount calculated17
annually by dividing the annual amount of facility funds of the school board or18
Recovery School District, less amounts allocated to the respective facilities office,19
by the total number of students attending school on campuses controlled by the20
school board or the Recovery School District as applicable multiplied by the number21
of students attending school at the particular campus as of the most recent February22
first total student enrollment counts.23
(3) "School" means any public school with a unique site code assigned by24
the department.25
(4) "School board" means the elected school board that governs schools in26
a school district.27
(5) "School district" means all schools within the geographic jurisdiction of28
a local school board within which schools have been transferred to the Recovery29
School District pursuant to R.S. 17:10.7.30 ENROLLEDHB NO. 1271
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Section 2. This Act shall become effective on July 1, 2014; if vetoed by the governor1
and subsequently approved by the legislature, this Act shall become effective on July 1,2
2014, or on the day following such approval by the legislature, whichever is later. 3
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: