ENROLLED ACT No. 430 2019 Regular Session HOUSE BILL NO. 393 BY REPRESENTATIVES LEGER, BAGNERIS, GARY CARTER, COX, FRANKLIN, JIMMY HARRIS, JACKSON, MOORE, NORTON, PIERRE, SMITH, AND WHITE AND SENATOR CARTER 1 AN ACT 2 To amend and reenact R.S. 17:100.11 and to enact R.S. 17:100.12 and 3995(A)(1)(b)(iv), 3 relative to school facilities and needs in certain school districts; to provide relative 4 to funds dedicated to providing, preserving, and improving school facilities; to 5 provide for the systemwide needs program and for the purposes, funding, and 6 operation of such program; and to provide for related matters. 7 Be it enacted by the Legislature of Louisiana: 8 Section 1. R.S. 17:100.11 is hereby amended and reenacted and R.S. 17:100.12 and 9 3995(A)(1)(b)(iv) are hereby enacted to read as follows: 10 §100.11. School facilities preservation; certain districts 11 A.(1) There is hereby established for each school district as defined in 12 Subsection H of this Section a school facilities preservation program. The program 13 shall be funded, structured, and operated as provided in this Section and policies 14 adopted by the school board in accordance with this Section. 15 (2) Proceeds of the following taxes, hereafter referred to in this Section as 16 "facility funds", shall be used to fund the school facilities preservation program: 17 (a) The proceeds of local sales taxes at a rate equivalent to the rate being 18 used as of July 1, 2014, by the school board to pay school facility debt of thirteen- Page 1 of 16 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 393 ENROLLED 1 hundredths percent. However, from these proceeds the school board shall fulfill the 2 obligation required by R.S. 17:3995(A)(1)(c) and shall continue to make payments 3 for school facility debt that existed on July 1, 2014, until the debt is fully paid. Upon 4 payment of such debt, all of the proceeds of the local sales tax dedicated by this 5 Subparagraph, except for the portion used to fulfill the obligation required by R.S. 6 17:3995(A)(1)(c), shall be used for purposes of this Section. 7 (b) The proceeds from property taxes dedicated to capital outlay and 8 authorized by voters after July 1, 2014, to support the purposes of this Section. 9 (3) The proceeds of property taxes dedicated by voters for payment of bonds 10 held by the school board and in existence as of July 1, 2014, shall not be considered 11 and not otherwise administered as facility funds under the provisions of this Section. 12 Additionally, the school board shall not refinance bonds that are outstanding on 13 July 1, 2014, nor shall it take any action that would delay the retirement of such 14 bonds. It is the intention of this Paragraph that such bonds be paid in full no later 15 than the dates specified by the payment schedule in existence on July 1, 2014. 16 B. Each year, the school board shall transfer to the Recovery School District 17 a proportion of facility funds equal to the proportion of students attending school on 18 campuses that are in the school district and that are controlled by the Recovery 19 School District to the total number of students attending school on campuses that are 20 in the school district and that are controlled by either the school board or the 21 Recovery School District, based on the February first total student enrollment counts. 22 The amounts, by source, of facility funds, revolving loan fund funds, capital 23 improvement fund funds, the amount retained by the school board, the amount 24 transferred to the Recovery School District, and the per campus student counts used 25 in calculations pursuant to this Subsection shall be included as a schedule to the 26 annual financial statements of the school board, audited by its certified public 27 accountant, and submitted to the state Department of Education, all in a manner 28 substantially similar to that provided in R.S. 17:1990(C)(2)(a)(iii)(dd). Page 2 of 16 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 393 ENROLLED 1 C.(1) The operator of each school in the school district shall maintain a 2 school facility repair and replacement account for each campus; such accounts are 3 referred to in this Section as "school facility accounts". 4 (2)(a) Beginning with the year following the retirement of all bonds 5 referenced in Paragraph (A)(3) of this Section, the school board shall annually 6 deposit into each school facility account amounts as follows: 7 (i) Eight hundred dollars per student for a school that is in a facility that was 8 constructed prior to September 1, 2005, and that has not received a renovation 9 exceeding half the value of the facility's replacement cost since that date. 10 (ii) Five hundred dollars per student for a school that does not meet the 11 criteria established in Item (i) of this Subparagraph. 12 (b) If facility funds are not sufficient to deposit the amounts required by 13 Subparagraph (a) of this Paragraph, the school board shall deposit available funds 14 in school facility accounts in accordance with its policy. 15 (3) Except as provided in Paragraph (7) of this Subsection, the school facility 16 accounts shall be segregated, and funds therein shall not be commingled with other 17 school funds. Funds in such an account shall be used only for the benefit of the 18 campus for which it was established. The school board shall adopt investment 19 policies governing school facility accounts. The provisions of R.S. 33:2955 and R.S. 20 49:321 are applicable to such accounts. Investment and interest earnings generated 21 on funds in a school facility account shall be credited to the account and shall not be 22 transferred to another account or used for purposes other than those allowable for 23 funds in the school facility account. A school facility account shall be audited 24 annually in accordance with monitoring policies developed by the school board, 25 which shall include verification that the proper amounts were deposited into the 26 school facility account and invested and used according to law and policy. 27 (4) The funds in the school facility account may be used only for the costs 28 of capital repairs, improvements, and replacement, including debt service and other 29 financing costs associated therewith. All expenditures shall be in accordance with 30 law and policies developed by the school board. The school board shall develop Page 3 of 16 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 393 ENROLLED 1 policies defining an emergency and the protocol a school must follow in expending 2 funds in the school facility account for emergency repairs. Expenditures for planned 3 capital repairs, improvements, and replacements and finance costs associated with 4 such expenditures shall be approved in advance by the charter school's board if the 5 school is a charter school and the school board. Expenditures for planned capital 6 repairs and replacements shall reflect the appropriate priorities as reflected in the 7 school's long-term capital plan developed pursuant to Paragraph (5) of this 8 Subsection. 9 (5) Prior to the retirement of all bonds referenced in Paragraph (A)(3) of this 10 Section, the school facilities office, as provided for in Paragraph (D)(1) of this 11 Section, shall develop for each campus, in consultation with the operator of the 12 school, a long-term capital plan that meets the minimum requirements established 13 by the school board. After the retirement of such bonds, the operator of the school 14 is responsible for updating such plans, subject to requirements developed by the 15 school board and the approval of the school facilities office. Such plans shall include 16 but need not be limited to identifying key building components and when they will 17 likely need to be repaired or replaced and the estimated cost of doing so. 18 (6) A school shall comply with all applicable school board policies regarding 19 projects funded through its school facility account including but not limited to 20 disadvantaged business enterprises policies. 21 (7) A charter operator may make a loan to a school facility account in 22 accordance with school board policy and subject to school board approval. The loan 23 shall be made only from excess fund balances or other funds not designated for 24 instructional purposes from the school holding the school facility account or another 25 school under the same operator. All such loans shall be interest-free. If the school 26 tenant of a campus with an outstanding loan to the school facility account changes, 27 the new school tenant must pay back the loan under the same terms as the prior 28 tenant. If a school is lending money to the school facility account, the loan may be 29 repaid with funds from the school facility account, just as if the school had borrowed 30 money from the revolving loan fund, as provided for in Subsection F of this Section. Page 4 of 16 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 393 ENROLLED 1 The school board shall develop policies to address repayment of the loan in the event 2 the campus is no longer occupied by a school. 3 (8) If a school does not follow the legal and policy requirements for the 4 school facility account, the school board may suspend or terminate a school's 5 authority to use and control the funds in the school facility account. Prior to any 6 such action, the school board shall give formal notice to the school and provide an 7 opportunity for it to remedy the deficiency, all in accordance with policies governing 8 such procedures. 9 (9) Funds in a school facility account are the property of the school board. 10 A school facility account is campus-specific and remains with the campus should the 11 school tenant of the campus change or should the school tenant no longer occupy the 12 campus. However, if a campus is no longer to be used as a school, funds in the 13 school facility account for that campus shall be used or redistributed in accordance 14 with school board policies, which shall ensure that such funds are used for the 15 benefit of campuses in the school district. 16 C.(1) D.(1) The school board and the Recovery School District shall each 17 create a facilities office. From annual facility funds each receives, it shall use fifteen 18 twenty dollars per pupil attending school at a campus it controls in the school district 19 or whatever lesser amount is available after payments pursuant to Subsection C of 20 this Section to fund the facilities office. The school board and the Recovery School 21 District may adjust this per pupil amount on an annual basis by the lesser of the most 22 recent annual increase in the Consumer Price Index published by the United States 23 Department of Labor or in the minimum foundation program funds. 24 (2) To the extent that facility funds are available pursuant to Paragraph (1) 25 of this Subsection, the facilities office shall perform the following functions: 26 (a) Inspect and monitor facilities to ensure that they are being maintained 27 and that each campus is in compliance with maintenance and inspection 28 requirements. If a school is not properly maintaining its campus as required in the 29 lease agreement, the remedies available to the school board or Recovery School 30 District as applicable are to may suspend or terminate use of the school facility Page 5 of 16 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 393 ENROLLED 1 account funds as provided in Paragraph (F)(10) (C)(8) of this Section or to perform 2 necessary maintenance, repair, or replacement work and charge the school the costs 3 of such work plus a service fee. Prior to performing any such work, the school board 4 or Recovery School District shall give formal notice to the school and provide an 5 opportunity for it to remedy the deficiency, all in accordance with policies governing 6 such procedures. 7 (b) Manage building leases, handle emergency repairs, and administer the 8 revolving facility loan fund and prior to the retirement of the bonds referenced in 9 Paragraph (A)(3) of this Section, ensure the management of the revolving loan fund 10 and capital improvement fund, oversee and ensure the proper management of school 11 facility repair and replacement accounts, all as provided for by this Section, and 12 develop or approve long-term capital plans as provided for in Paragraph (C)(5) of 13 this Section. 14 (3) The facilities office may provide additional facility services to charter 15 schools, including emergency and capital repairs or replacements, made after the 16 retirement of the bonds referenced in Paragraph (A)(3) of this Section, procurement 17 services, and technical assistance, and charge fees for such services pursuant to a 18 written agreement with the school. 19 D. E.(1) Until all bonds referenced in Paragraph (A)(3) of this Section are 20 retired, the school board and the Recovery School District shall use facility funds 21 remaining after the allocation provided for in Subsection C D of this Section for 22 emergency repairs and replacements in accordance with policies each it adopts for 23 such purpose and for development of capital plans by the school facilities office as 24 provided for in Paragraph (C)(5) of this Section. No more than one million five 25 hundred thousand dollars of these funds shall be used to fund the development of 26 such capital plans. 27 (2) In the school year following the retirement of such bonds, and each year 28 thereafter, the school board and the Recovery School District shall transfer unused 29 funds received pursuant to this Subsection remaining facility funds to its respective 30 the revolving loan fund, as is provided for in Subsection E F of this Section, and to Page 6 of 16 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 393 ENROLLED 1 the capital improvement fund as is provided for in Subsection G of this Section. In 2 the first year following retirement of the bonds, fifty million dollars or whatever 3 lesser amount of facility funds remains shall be deposited into the revolving loan 4 fund. If funds remain after this deposit of fifty million dollars, the school board shall 5 determine the distribution of any remaining funds to the revolving loan fund and the 6 capital improvement fund. In each subsequent year, the school board shall transfer 7 remaining facility funds according to the following allocation schedule: 8 (a) If less than a total of fifty million dollars has been transferred to the 9 revolving loan fund since its creation, all available funds shall be transferred into the 10 revolving loan fund until the total contributions to the revolving loan fund since its 11 creation equals fifty million dollars. 12 (b) If more than fifty million dollars but less than seventy-five million 13 dollars has been transferred to the revolving loan fund since its creation, then half of 14 all available funds shall be transferred into the revolving loan fund and half of all 15 available funds shall be transferred into the capital improvement fund. 16 (c) If more than seventy-five million dollars has been transferred to the 17 revolving loan fund since its creation, twenty-five percent of all available funds shall 18 be transferred into the revolving loan fund and seventy-five percent of such funds 19 shall be transferred into the capital improvement fund. 20 E.(1) F.(1) The school board and the Recovery School District shall each 21 establish a revolving loan fund and make loans from the fund to schools that are in 22 campuses controlled by each respectively and that are in the school district to finance 23 emergency or planned capital repairs and replacements, all in accordance with this 24 Subsection. 25 (2) Beginning with the year following the retirement of bonds referenced in 26 Paragraph (A)(3) of this Section and continuing for twenty years, the school board 27 and the Recovery School District shall annually deposit facility funds available, after 28 funds are allocated to the facilities office as provided in Subsection C of this Section 29 and in the amount established by this Paragraph or whatever lesser amount is 30 available, into its respective revolving loan fund. The annual amount to be deposited Page 7 of 16 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 393 ENROLLED 1 by the school board or the Recovery School District shall be the sum of all per 2 campus contributions. A per campus contribution shall be one hundred fifty dollars 3 per student attending school at that campus or seventeen percent of the per-campus 4 share of facility funds, whichever is greater, if the school is in a facility that was 5 constructed prior to September 1, 2005, and that has not received a renovation 6 exceeding half the value of the facility's replacement cost since that date, or three 7 hundred dollars per student attending school at that campus or thirty-five percent of 8 the per-campus share of facility funds, whichever is greater, for all other schools. 9 The "replacement cost" of a facility that was constructed prior to September 1, 2005, 10 means the replacement cost of the facility as of July 1, 2014. 11 (3) The school board and the Recovery School District shall each establish 12 policies governing the following: eligible repairs and replacements, how schools are 13 to handle emergency repairs, approval of loan applications, maintenance of a 14 minimum balance in the loan fund, priorities for granting loans, and any other aspect 15 of administering the loan fund and loans made from it. 16 (4) (3) A school shall be eligible for a loan only if the balance in its school 17 facility account is below seventy-five thousand dollars. However, if a school will 18 use funds from the school facility account to fund a portion of a repair or 19 replacement project, it may receive a loan for that project if its budgeted 20 expenditures for the project will result in a balance in its school facility account 21 below seventy-five thousand dollars. 22 (5) (4) A loan application from a charter school shall be approved by the 23 charter school's board prior to submission to the school board or the Recovery 24 School District, whichever entity controls the campus, for approval. 25 (6) (5) Loans shall be interest-free; however, the school board and the 26 Recovery School District may charge a loan origination fee not exceeding five 27 percent of the value of the loan or thirty thousand dollars per loan, whichever is less. 28 (7) (6) Schools shall repay loans in accordance with the terms of the loan 29 agreement from funds to be deposited to its school facility account, as provided for 30 in Subsection F C of this Section. Page 8 of 16 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 393 ENROLLED 1 (8) (7) No school may use proceeds of a loan for operating expenses, 2 maintenance, or insurance costs. 3 (9) (8) If a school vacates a campus for which a loan is outstanding and 4 another school becomes the tenant in that campus, the new school shall assume the 5 debt. The school board shall develop policies to address repayment of a loan in the 6 event the campus is no longer occupied by a school. 7 F.(1) The operator of each school in the school district shall establish and 8 maintain a school facility repair and replacement account for each campus; such 9 accounts are referred to in this Section as "school facility accounts". 10 (2) Beginning with the year following the retirement of all bonds referenced 11 in Paragraph (A)(3) of this Section, the school board and the Recovery School 12 District shall annually deposit into each school facility account the per-campus share 13 of facility funds less any portion of such funds deposited, in accordance with 14 Subsection E of this Section, into the revolving loan fund. 15 (3) Except as provided in Paragraph (9) of this Subsection, the school facility 16 accounts shall be segregated, and funds therein shall not be commingled with other 17 school funds. Funds in such an account shall be used only for the benefit of the 18 campus for which it was established. The school board and Recovery School District 19 shall each adopt investment policies governing school facility accounts. The 20 provisions of R.S. 33:2955 and R.S. 49:321 are applicable to such accounts. 21 Investment and interest earnings generated on funds in a school facility account shall 22 be credited to the account and shall not be transferred to another account or used for 23 purposes other than those allowable for funds in the school facility account. A 24 school facility account shall be audited annually in accordance with monitoring 25 policies developed by the school board and the Recovery School District, which shall 26 include verification that the proper amounts were deposited into the school facility 27 account and invested and used according to law and policy. 28 (4) The funds in the school facility account may be used only for emergency 29 or planned capital repairs and replacements as outlined in law and in policies 30 developed by the school board and the Recovery School District. Page 9 of 16 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 393 ENROLLED 1 (5) Each school shall develop, for each campus, a long-term capital plan that 2 meets minimum requirements established by the school board or Recovery School 3 District as applicable. Such plans shall include but need not be limited to identifying 4 key building components and when they will likely need to be repaired or replaced 5 and the estimated cost of doing so. 6 (6) Nonemergency expenditures from the school facility account shall be 7 approved in advance by the charter school's board if the school is a charter school, 8 and the school board or Recovery School District, as applicable, and shall reflect the 9 appropriate priorities as reflected in the school's long-term capital plan developed 10 pursuant to Paragraph (5) of this Subsection. 11 (7) The school board and the Recovery School District shall each develop 12 policies defining an emergency and the protocol a school must follow in expending 13 funds in the school facility account for emergency repairs. 14 (8) A school shall comply with all applicable school board or Recovery 15 School District policies regarding projects funded through its school facility account 16 including but not limited to disadvantaged business enterprises policies. 17 (9) A charter operator may make a loan to a school facility account. The 18 loan shall be made only from excess fund balances or other funds not designated for 19 instructional purposes from the school holding the school facility account or another 20 school under the same operator. All such loans shall be interest-free. If the school 21 tenant of a campus with an outstanding loan to the school facility account changes, 22 the new school tenant must pay back the loan under the same terms as the prior 23 tenant. If a school is lending money to the school facility account, the loan can be 24 repaid with funds from the school facility account, just as if the school had borrowed 25 money from the revolving loan fund, as provided for in Subsection E of this Section. 26 (10) If a school does not follow the legal and policy requirements for the 27 school facility account, the remedy available to the school board or Recovery School 28 District as applicable is to suspend or terminate a school's authority to use and 29 control the funds in the school facility account. Prior to any such action, the school 30 board or Recovery School District shall give formal notice to the school and provide Page 10 of 16 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 393 ENROLLED 1 an opportunity for it to remedy the deficiency, all in accordance with policies 2 governing such procedures. 3 (11) Funds in a school facility account are the property of the school board 4 or the Recovery School District, whichever entity controls the campus. A school 5 facility account is campus-specific and remains with the campus should the school 6 tenant of the campus change or should the school tenant no longer occupy the 7 campus. 8 G.(1) The school board shall establish a capital improvement fund and make 9 grants from the fund to schools that are in campuses in the school district to finance 10 preservation, improvements, capital repairs, construction, and replacement of 11 facilities that were constructed prior to September 1, 2005, and that have not 12 received a renovation exceeding half the value of the facility's replacement cost since 13 that date, all in accordance with this Subsection. 14 (2) The school board shall adopt policies governing the administration of the 15 fund, including the expenditure of money in the capital improvement fund, criteria 16 for determining when grants are made from the fund, and regular reports to the 17 school board on fund activity. 18 (3) The school board shall establish policies defining the maximum grant for 19 a single project. 20 H.(1) The Neither the school board nor the Recovery School District shall 21 not charge rent or any other fee to a charter school in the school district for the 22 occupancy, use, or repair of a campus it controls other than as authorized by this 23 Section. The Recovery School District or the school board may, however, require 24 a charter school to pay for maintenance, insurance, utilities, and other costs related 25 to the operation and upkeep of a campus, as outlined in the lease agreement for 26 occupancy of the campus. Except as provided in this Paragraph, this Section does 27 not authorize a school board or the Recovery School District to require a charter 28 school to expend funds on emergency or planned capital repairs or replacements in 29 excess of funds available for such purposes pursuant to this Section. Page 11 of 16 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 393 ENROLLED 1 (2) The school board and the Recovery School District shall annually prepare 2 and issue a public report that includes all of the following: the amount of funds in 3 its respective the revolving facility loan fund and all loans made therefrom, the 4 amount of funds in the capital improvement fund and all grants made therefrom, the 5 amount of facility funds distributed to each campus by the Recovery School District 6 or the school board, the amount allocated to fund the respective facility office of 7 each, and the cost and type of each emergency repair made by the facilities office if 8 applicable. The Recovery School District shall submit its report to the State Board 9 of Elementary and Secondary Education. 10 (3) This Section shall not be construed as a limitation on any authority or 11 responsibility of a school board to seek or to expend funds on facility repairs, 12 replacements, and improvements as otherwise provided by law including but not 13 limited to the provisions of R.S. 17:59, 17:81, and 17:98. 14 H. I. For purposes of this Section, the following terms shall have the 15 meaning ascribed: 16 (1) "Campus" means a school building owned by the school board and 17 controlled by either the school board or the Recovery School District and all 18 facilities otherwise part of the school, recognized as part of the facilities, and 19 typically available to the school, its students, faculty, and staff. A single campus 20 may include more than one neighboring school building. Generally, a single campus 21 includes all facilities sharing a single legal address. In some cases, more than one 22 school may occupy a single campus, and in other cases, a single school may occupy 23 more than one campus. 24 (2) "Per campus share of facility funds" means an amount calculated 25 annually by dividing the annual amount of facility funds of the school board or 26 Recovery School District, less amounts allocated to the respective facilities office, 27 by the total number of students attending school on campuses controlled by the 28 school board or the Recovery School District as applicable multiplied by the number 29 of students attending school at the particular campus as of the most recent February 30 first total student enrollment counts. Page 12 of 16 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 393 ENROLLED 1 (3) "School" means any public school with a unique site code assigned by 2 the department. 3 (4) (3) "School board" means the elected school board that governs schools 4 in a school district. 5 (5) (4) "School district" means all schools within the geographic jurisdiction 6 of a local school board within which schools have been transferred to the Recovery 7 School District pursuant to R.S. 17:10.7. 8 I.(1) Prior to July 1, 2017, the provisions of this Section shall be 9 implemented in accordance with a plan or agreement between the school board and 10 the Recovery School District. 11 (2) Beginning on July 1, 2017, the provisions of this Section shall be 12 implemented in accordance with the plan approved pursuant to R.S. 17:10.7.1. 13 §100.12. Systemwide needs program 14 A.(1) There is hereby established for each school district as defined in R.S. 15 17:100.11(I) a systemwide needs program. The program shall be funded, structured, 16 and operated as provided in this Section and polices adopted by the school board. 17 (2) The purpose of the program is to direct initiatives that will result in 18 districtwide improvements in areas that can be more efficiently and effectively 19 addressed at the system level than at the school level. 20 B. The school district shall create a special fund for the purpose of 21 dedicating money to the program. The district shall annually deposit into the fund 22 one hundred twenty dollars per student in the district less the district's expenditures 23 that year for costs identified in RS 17:1990(C)(2)(a)(iii)(aa)(I) through (IV). 24 C. The superintendent shall: 25 (1) Develop and propose plans for improvement in particular areas of focus. 26 The superintendent shall propose an improvement plan to use the systemwide needs 27 fund to support one or more areas of focus for no less than three years and shall 28 propose new areas of focus and improvement plans for school board approval not 29 more frequently than once every three years. The superintendent shall develop such Page 13 of 16 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 393 ENROLLED 1 plans and proposed areas of focus in collaboration with school leaders in the school 2 district as more specifically provided by school board policy. 3 (2) Include related performance objectives and a proposed level of funding 4 in any plan for improvement in an area of focus. 5 (3) Submit such plans to the school board for approval; such approval 6 requires a majority vote of the entire membership of the board. The superintendent 7 shall demonstrate, to the satisfaction of the school board, that an area of focus will 8 impact at least fifty percent of the public school students or fifty percent of the public 9 schools over the course of the funding cycle for the area of focus. 10 (4) Consider how the expenditures from the fund could be coordinated with 11 other funds in order to increase the effectiveness of the program. 12 (5) Annually report to the school board on the performance objectives and 13 the expenditure of funds for the program. 14 D. The school board may approve a plan and proposed areas of focus and 15 appropriate expenditures from the fund therefor. 16 E.(1) The superintendent shall implement an approved plan by awarding 17 funds through a competitive process according to policies developed by the school 18 board. Funds may be expended directly by the district but shall not be used to pay, 19 directly or indirectly, for school district or school board personnel, staff, or operating 20 expenditures. Funds awarded to schools may be used only for the following 21 purposes: 22 (a) Procuring materials, services, or other supports from district-approved 23 organizations or vendors. 24 (b) Providing services for students systemwide that is aligned with one or 25 more board-approved areas of focus. 26 (2) An applicant for funds shall demonstrate how the proposed good or 27 service will contribute to the achievement of the goals and objectives of the approved 28 plan. Page 14 of 16 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 393 ENROLLED 1 (3) An applicant for funds shall demonstrate that at least twenty-five percent 2 of the funds it will expend to achieve its proposal are from sources other than this 3 program. 4 (4) Funding applications shall be approved according to school board policy. 5 No expenditure shall be made from the fund except as provided in this Subsection. 6 No expenditure of funds shall be made in excess of the amount approved by the 7 school board for a particular area of focus. 8 * * * 9 §3995. Charter school funding 10 A.(1) For the purpose of funding, a Type 1, Type 3, Type 3B not acting as 11 its own local education agency, and Type 4 charter school shall be considered an 12 approved public school of the local school board entering into the charter agreement. 13 Type 2 charter schools and a Type 3B charter school acting as its own local 14 education agency shall receive a per pupil amount each year authorized by the state 15 board each year as provided in the approved minimum foundation program formula. 16 The per pupil amount provided to a Type 1, 2, 3, 3B, or 4 charter school shall be 17 computed annually and shall be equal to the per pupil amount provided through the 18 minimum foundation program formula, determined by the allocation weights in the 19 formula based upon student characteristics or needs, received by the school district 20 in which the student resides from the following sources based on the district's 21 membership count used in the minimum foundation program formula: 22 * * * 23 (b) 24 * * * Page 15 of 16 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 393 ENROLLED 1 (iv) For the purposes of this Subparagraph, local revenues of a school board 2 also shall exclude the amount deposited into the fund created by R.S. 17:100.12(B). 3 * * * SPEAKER OF THE HOUSE OF REPRESENTATIVES PRESIDENT OF THE SENATE GOVERNOR OF THE STATE OF LOUISIANA APPROVED: Page 16 of 16 CODING: Words in struck through type are deletions from existing law; words underscored are additions.