UNOFFICIAL COPY AS OF 01/01/1914 REG. SESS.14 RS BR 1958

AN ACT relating to school facilities funding, making an appropriation therefor, and declaring an emergency.

Be it enacted by the General Assembly of the Commonwealth of Kentucky:

Section 1. KRS 157.611 is amended to read as follows:

(1)By establishing the School Facilities Construction Commission, the General Assembly expresses its commitment to help local districts meet the school construction needs and the education technology needs of the state in a manner which will insure an equitable distribution of funds based on unmet facilities need and the total implementation of the Kentucky Education Technology System.

(2)The commission is empowered to act on behalf of school districts to issue bonds in the name of the commission and to enter into lease agreements with local boards of education to finance construction of new facilities, major renovation of existing school facilities. The commission is also empowered to enter into agreements which may provide for a percentage discount, on a biennially renewable basis, of annual lease agreements due the commission for those districts which participate. The commission is also empowered to enter into lease agreements with the Department of Education to build state-owned facilities operated by the Department of Education or to purchase or lease education technology equipment and related software identified in the technology master plan for those facilities or the Department of Education.

(3)The commission shall assist local school boards meet their education technology needs by distributing state funds appropriated for this purpose and by assisting school boards to design efficient finance plans for the bonding, purchase or lease of education technology equipment and related software identified in the technology master plan.

(4)The commission shall administer three (3)[two (2)] separate programs: the school construction funding program,[and ]the education technology funding program, and the school facilities emergency relief fund. Funds appropriated for each program shall be maintained, administered, and audited separately.

(5)Nothing in KRS 157.611 to 157.640 shall prohibit a school district from issuing bonds in accordance with KRS Chapter 162.

Section 2. KRS 157.615 is amended to read as follows:

As used in KRS 157.611 to 157.640, unless the context requires otherwise:

(1)"Available local revenue" means the sum of the school building fund account balance; the bonding potential of the capital outlay and building funds; and the capital outlay fund account balance on June 30 of odd-numbered years. These accounts shall be as defined in the manual for Kentucky school financial accounting systems;

(2)"Board of education" means the governing body of a county school district or an independent school district;

(3)"Bonds" or "bonds of the commission" means bonds issued by the commission, or issued by a city, county, or other agency or instrumentality of the Board of Education, in accordance with KRS Chapter 162, payable as to principal and interest from rentals received from a board of education or from the department pursuant to a lease or from contributions from the commission, and constitute municipal bonds exempt from taxation under the Constitution of the Commonwealth;

(4)"Commission" means the School Facilities Construction Commission;

(5)"Department" means the State Department of Education;

(6)[(5)]"District technology plan" means the plan developed by the local district and the Department of Education and approved by the Kentucky Board of Education upon the recommendation of the Council for Education Technology;

(7)"Emergency" means a condition that arises from an accident, catastrophe, or other unforeseen occurrence such as a fire, storm, flood, or other event that involves unusual peril to the lives or property of area residents.

(8)(6)"Equivalent tax rate" means the rate which results when the income from all taxes levied by the district for school purposes is divided by the total assessed value of property plus the assessment for motor vehicles certified by the Department of Revenue as provided by KRS 160.470;

(9)[(7)]"Kentucky Education Technology System" means the statewide system set forth in the technology master plan issued by the Kentucky Board of Education with the recommendation of the Council for Education Technology and approved by the Legislative Research Commission;

(10)[(8)]"Lease" or "lease instrument" means a written instrument for the leasing of one (1) or more school projects executed by the commission as lessor and a board of education as lessee, or executed by the commission as lessor and the department as lessee, as the case may be;

(11)[(9)]"Lease/purchase agreement" means a lease between the school district or the department and a vendor that includes an option to purchase the technology equipment or software at the end of the lease period;

(12)[(10)]"Percentage discount" means the degree to which the commission will participate in meeting the bond and interest redemption schedule required to amortize bonds issued by the commission on behalf of a local school district;

(13)[(11)]"Project" means a defined item of need to construct new facilities or to provide major renovation of existing facilities which is identified on the priority schedule of the approved school facilities plan;

(14)[(12)]"School facilities plan" means the plan developed pursuant to the survey specified by KRS 157.420 and by administrative regulations of the Kentucky Board of Education;

(15)[(13)]"Technology master plan" means the long-range plan for the implementation of the Kentucky Education Technology System as developed by the Council for Education Technology and approved by the Kentucky Board of Education and the Legislative Research Commission;

(16)[(14)]"Unmet facilities need" means the total cost of new construction and major renovation needs as shown by the approved school facilities plan less any available local revenue;

(17)[(15)]"Unmet technology need" means the total cost of technology need as shown by the approved technology plan of the local district; and

(18)[(16)]"Eligible district" means any local school district having an unmet facilities need, as defined in this section, in excess of one hundred thousand dollars ($100,000) or a district qualifying for education technology funding.

SECTION 3. A NEW SECTION OF KRS CHAPTER 157 IS CREATED TO READ AS FOLLOWS:

(1)The school facilities emergency relief fund is established to be maintained and administered by the School Facilities Construction Commission.

(2)Not withstanding KRS 48.010, KRS 48.720, any other provision in the Kentucky Revised Statutes, and any provision included in an enacted executive branch budget, if general fund-supported debt service appropriated to the School Facilities Construction Commission is more than required due to favorable interest rates or timing variances, the excess debt service in each fiscal year shall remain unallotted and notwithstanding KRS 45.229, shall lapse to the school facilities emergency relief fund.

(a) The fund may also receive other appropriations from the General Assembly and reimbursements from local school districts.

(b)Notwithstanding KRS 45.229, residual moneys in the fund shall not lapse at the close of the fiscal year, but shall be carried forward to the next fiscal year.

(3)Notwithstanding KRS 157.620, the commission may offer and dispense grants, and issue bonds in the name of the commission, or enter into lease agreements with local boards of education to finance the construction and equipping of new facilities or major renovation if facilities in the district:

(a)Are severely damaged, or destroyed by an emergency as defined in this chapter;

(b)Are severely damaged, or destroyed through an act of criminal negligence;

(c)Are rendered structurally unsound, hazardous, or uninhabitable as determined by local authorities or the commissioner of education; or

(d)There is reasonable expectation that a school facility will be rendered structurally unsound, hazardous, or uninhabitable within the course of one (1) year as determined by local authorities or the commissioner of education.

(4)If a school district receives an offer of assistance from the commission under subsection (3) of this section and subsequently, as the result of litigation or insurance, receives funds for the original facility, the school district shall reimburse the fund an amount equal to that received pursuant to subsection (3) of this section. If the litigation or insurance receipts are less than the amount received pursuant to subsection (3) of this section, the district shall reimburse the fund an amount equal to that received as a result of litigation or insurance less the district's costs and legal fees in securing the judgment or payment.

(5)If the uncommitted balance in the fund exceeds ten million dollars ($10,000,000), the School Facilities Construction Commission may receive applications for funding from districts with facilities found to be in the worst condition according to the most recent facility study undertaken by the Kentucky Department of Education pursuant to KRS 157.420. The commission shall promulgate administrative regulations with criteria by which applications for assistance will be evaluated. If the uncommitted balance in the fund exceeds twenty-five million dollars ($25,000,000), any additional funds shall lapse to the state general fund.

(6)Districts receiving offers of assistance under subsection (5) of this section must be at the ten cent ($0.10) equivalent tax rate for facilities or levy an additional five cent ($0.05) equivalent tax rate required by KRS 157.440.

(7)Prior to making an allocation from this fund, a representative of the commission shall report the proposed allocation to the Capital Projects and Bond Oversight Committee, at least fourteen (14) days prior to the committee meeting for review, and provide specification of the amount of the proposed allocation and documentation of its necessity.

(8)Within thirty (30) days after submission to the committee of a proposed allocation from this fund, the Capital Projects and Bond Oversight Committee shall determine whether the amount of the proposed transfer is reasonable and consistent with KRS Chapter 157. If the committee does not approve a proposed allocation or other proposed action, the committee shall promptly transmit its findings and determination to the executive director of the School Facilities Construction Commission.

(9)If the Capital Projects and Bond Oversight Committee does not approve a proposed allocation or other proposed action, the allocation shall not be made nor the action taken unless the executive director of the School Facilities Construction Committee:

(a)Revises the allocation or action to comply with the objections of the committee;

(b)Cancels the allocation or action; or

(c)Determines to make the allocation or take the action not approved by the committee.

(10)The decision made by the executive director of the School Facilities Construction Commission under subsection (9) of this section shall be communicated to the Capital Projects and Bond Oversight Committee in writing within thirty (30) days of the committee decision not to approve the proposed allocation or proposed action. The committee determination and the action of the executive director of the School Facilities Construction Commission shall be transmitted to the Legislative Research Commission for referral to the appropriate interim joint committee or committees.

Section 4. KRS 157.390 is amended to read as follows:

(1)For purposes of the state teacher salary schedule, teachers shall be placed on the schedule based on certification rank as established by the Education Professional Standards Board under KRS 161.1211 and by their years of experience as follows:

1.Zero (0) to three (3) years;
2.Four (4) to nine (9) years;
3.Ten (10) to fourteen (14) years;
4.Fifteen (15) to nineteen (19) years; and
5.Twenty (20) or more years.

(2)The rank and experience of the teacher shall be determined on September 15 of each year.

(3)The amount to be included in the base funding level for capital outlay shall be determined by multiplying the average daily attendance by the amounts set forth in the biennial budget.

(4)The amount to be included in the public school fund of each district for transportation shall be determined in accordance with the provisions of KRS 157.370.

(5)The total amount of money distributable to each district from the public school fund shall include the base funding per pupil in average daily attendance, an amount for at-risk students, an amount for the types and numbers of students with disabilities, an amount for students served in home and hospital settings, and the allotments in subsections (3) and (4) of this section, less the amount of local tax revenues generated for school purposes, up to a maximum equivalent local rate of thirty cents ($0.30) as defined by KRS 157.615(8)[(6)].

(6)A classroom teacher or administrator may be provided additional compensation, funds for instructional and program materials, and other related costs for serving as a classroom mentor, teaching partner, or professional development leader in core discipline areas including reading, and other subject areas as appropriate to other education professionals in a state approved program or state approved activities. The Kentucky Department of Education shall administer the funds appropriated for these purposes. The Kentucky Board of Education shall promulgate administrative regulations to define the guidelines for programs and activities that qualify for funds including the application and approval process, the individual participant requirements, the amount of compensation, the timelines, and reporting requirements. The board shall solicit recommendations from the Education Professional Standards Board and staff of the Kentucky Department of Education in developing its administrative regulations.

Section 5. KRS 162.385 is amended to read as follows:

(1)Any board of education may obtain buildings for school purposes by proceeding under the provisions of KRS 162.120 to 162.290 utilizing a nonprofit finance corporation established pursuant to the provisions of KRS 273.161 to 273.390, inclusive, and KRS 58.180 as an issuing agency for the bonds instead of a city or county. When applied to such boards of education, KRS 162.120 to 162.290 shall be so read that the term:

(a)"City" means a finance corporation acting as an agency and instrumentality of the board pursuant to KRS 58.180;

(b)"City clerk" means the secretary of the finance corporation;

(c)"Governing body of the city" means the board of directors of the finance corporation or other governing body thereof;

(d)"Mayor" means president or chief executive officer of the finance corporation; and

(e)"Ordinance" means an ordinance, resolution, or trust indenture or a similar document.

(2)In order to promote uniformity in the financing of school facilities, each finance corporation shall include the identity of the school district for which it acts in its title and shall be designated as "...... School District Finance Corporation."

(3)Bonds issued by a finance corporation on behalf of a board of education shall constitute "bonds" within the meaning of KRS 157.615[(3)] and the School Facilities Construction Commission shall be authorized to assist qualified boards in meeting rental payments due under a lease from the finance corporation to the board which shall constitute a "lease" within the meaning of KRS 157.615(10)[(8)].

Section 6. Whereas school districts with facilities facing damage due to severe weather require assistance to ensure student wellbeing, and increased funding is greatly needed as soon as possible, an emergency is declared to exist, and this Act takes effect upon its passage and approval by the Governor or upon its otherwise becoming a law.

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BR195800.100 - 1958 - 5341Jacketed