Reference is to the bill as introduced.
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/ SECTION 1. Title 59 of the 1976 Code is amended by adding:
Section 59-158-110. This chapter is known and may be cited as the 'South Carolina Education School Facilities Act'.
Section 59-158-120.
As used in this chapter:
(1) 'Authority' means
the South Carolina State Fiscal Accountability Authority.
(2) 'Bonds' means
general obligation bonds, notes, interim certificates, grant or
bond anticipation notes, or any other similar types of
indebtedness issued by the State of South Carolina.
(3) 'Facilities plan'
means the report described in Section 59-158-180(B).
(4) 'Facilities study'
means that study described in Section 59-158-180(A).
(5) 'Financing
agreement' means an agreement entered into between the state
board and a school district pertaining to a loan or other
financial assistance. This agreement may contain, in addition to
financial terms, provisions relating to the regulation and
supervision of a qualified school project, and those other
provisions as the state board may determine.
(6) 'Loan' means an
obligation subject to repayment which is provided by the state
board to a school district for all or a part of the eligible
cost of a qualified school project. A loan may be disbursed in
anticipation of reimbursement for or direct payment of eligible
costs of a qualified school project.
(7) 'Other financial
assistance' means, but is not limited to, grants, contributions,
credit enhancement, capital or debt reserves for bonds or debt
instrument financing, interest rate subsidies, provision of
letters of credit and credit instruments, provision of bond or
other debt financing instrument security, and other lawful forms
of financing and methods of leveraging funds that are approved
by the state board, and in the case of federal funds, as allowed
by federal law.
(8) 'Prioritization
report' means the report described in Section 59-158-180 and
which is prepared by the state board.
(9) 'Qualified school
projects' mean school facilities that are constructed, renovated
or equipped with money generated under the provisions of this
chapter and in accordance with the provisions of this
chapter.
(10) 'School district'
means a public body corporate and politic operating as a school
district under the provisions of Chapter 17, Title 59, and
charter schools within the meaning of Chapter 40, Title 59.
(11) 'School
facilities' means only facilities necessary for instructional
and related supporting purposes including, but not limited to,
classrooms, libraries, media centers, laboratories, cafeterias,
physical education spaces, related interior and exterior
facilities, and the conduit, wiring, and powering of hardware
installations for classroom computers or for area network
systems. School facilities under this chapter also include:
(a)
health and safety upgrades;
(b)
technology upgrades inside school facilities;
(c)
upgrades associated with career and technology education
programs;
(d)
deferred maintenance needs as described in the district's
capital improvement plan.
'School facilities' does not include
unimproved real property, centralized district administration
facilities, or other facilities, including those normally
identified with interscholastic sports activities.
(12) 'South Carolina
Education School Facilities General Obligation Bonds' means
bonds issued under the authority of Article 3 of this
chapter.
(13) 'State board'
means the State Board of Education.
Section 59-158-130. (A)
Consistent with the definition of school
facilities in Section 59-158-120(11), funds made available
through this chapter must be used for permanent school
instructional facilities, health and safety upgrades, technology
access inside the school, and fixed building assets including
the costs for construction, improvement, enlargement, or
renovation of school facilities.
(B) Funds made
available under this chapter must be allocated to school
districts for school facilities according to priorities
established by the Office of School Facilities of the Department
of Education as approved by the State Board of Education.
Section 59-158-140. (A)
The State Board of Education's
responsibilities in regard to this chapter include:
(1)
developing policies and standards for a uniform assessment
of facilities' needs and standardized cost allowances for
estimating the cost in meeting these needs in order to provide
for a systematic reporting of each district's needs to be used
in calculating the priority allotment of funds under this
chapter. Any standardized cost allowances must take into
account regional variances that are beyond the control of
individual districts. Facilities' needs include, but are not
limited to, facility need capacity and condition, space
requirements, program standards, and pupil growth. Cost
allowances shall be developed to include such measures as costs
per square foot, costs per pupil, or costs per teaching unit
with such costs adjusted annually to reflect changes in the cost
of labor and materials. These standards and cost allowances are
to be used only for providing a uniform reporting of districts'
needs for allotment and priority purposes and are not intended
to limit district options in determining the most appropriate
manner in which to meet individual district needs; and
(2)
adopting policies and standards to ensure the accuracy of
district reporting required under this chapter and the use of
funds disbursed under this chapter.
(B) In order to
implement the provisions of this chapter, the state board also
shall:
(1)
establish policies, procedures, and priorities for the
making and administering of grants, loans or a combination of
these to the various school districts which policies,
procedures, and priorities must be established by appropriate
regulations of the state board;
(2)
enter into agreements with departments, agencies, or
instrumentalities of the United States or of this State,
including particularly the Offices of State Auditor, State
Treasurer, and Comptroller General, for the purposes of
administering operations and establishing fiscal controls and
accounting procedures that promote financial integrity of the
programs contemplated in this chapter;
(3)
maintain an application process for school districts to
request funding for qualified school projects; and
(4)
develop financial and operating conditions to which school
districts must agree prior to receiving financial assistance
provided for in this chapter.
(C) In order to fulfill
its duties set forth in this section, the state board may:
(1)
expend funds credited to the state board as the state
board determines necessary for the costs of administering the
operations of the state board;
(2)
establish advisory committees as the state board
determines appropriate, which may include individuals from the
private sector with banking and financial expertise;
(3)
collect fees and charges in connection with its loans or
other financial assistance;
(4)
apply for, receive and accept from any source, aid,
grants, and contributions of money, property, labor, or other
things of value to be used to carry out the purposes of this
chapter subject to the conditions upon which the aid, grants, or
contributions are made;
(5)
enter into contracts or agreements for the servicing and
processing of financial agreements;
(6)
promulgate regulations considered necessary to effect the
responsibilities set forth in this chapter; in order to aid the
state board in the performance of its duties, the State
Department of Education shall provide staff and technical
assistance as necessary; and
(7)
do all other things necessary or convenient to exercise
powers granted or reasonably implied by this chapter.
Section 59-158-150. The
Department of Education's responsibilities under this chapter to
assist the state board in the performance of its duties shall
include:
(1) providing staffing
assistance to the state board in the development of policies and
standards, and regulations implementing this chapter;
(2) ensuring compliance
with state standards and requirements, inspecting construction
projects for education facilities, and approving completed
construction pursuant to Chapter 23 of this title for projects
financed in whole or in part with funds allocated under this
chapter;
(3) defining capital
improvement plans that shall include maintenance and
construction plans, student growth projections, cross district
cooperation, partnership with local technical colleges and
information technology needs; and
(4) ranking the
projects in priority order according to need and submitting the
rankings for approval to the State Board of Education.
Section 59-158-160. All money of the state board received under this chapter, except as otherwise authorized by law or provided in this chapter, must be deposited with and invested by the State Treasurer. Funds of the state board not needed for immediate use or disbursement may be invested by the State Treasurer in obligations or securities which are declared to be legal obligations by the provisions of Section 11-9-660.
Section 59-158-170. Following the close of each state fiscal year, the state board shall submit an annual report of its activities for the preceding year to the Governor and to the General Assembly. An independent certified public accountant shall perform an audit of the books and accounts of the state board at least once in each state fiscal year.
Section 59-158-180. (A)
The State Department of Education shall
conduct a facilities study of all school districts' facilities
and physical assets. The facilities study shall provide an
assessment of the facilities presently being utilized by the
various school districts and outline the required construction,
renovation and equipping of facility needs of each school
district in order to enable each school district to provide for
comparable access to school amenities, educational space and
infrastructure, and safety to students regardless of their
school district of residence. The facilities study shall be
completed by October 1, 2017, and delivered to the state board,
and shall be utilized by the state board in the performance of
its duties and functions under this chapter. The facilities
study shall be updated from time to time by the department as
necessary to enable the state board to perform its duties and
functions under this chapter.
(B) By October 1, 2017,
and the first day of October of each year thereafter, each
school district shall provide annually to the department a
thorough facilities plan that describes the school facilities in
that school district. Each facilities plan shall:
(1)
describe the present facilities being utilized by the
school district;
(2)
describe the deficiencies of these facilities; and
(3)
provide the school district's recommendations to remedy
these deficiencies, including appropriate designs, and an
estimated cost of implementing such recommendations, including a
cost estimate of utility and other infrastructure to be provided
by public entities necessary to serve each proposed
facility.
In doing so, the school districts must
undertake a study of future enrollment trends so that both the
construction and closing of buildings is considered.
Additionally, each school district's facilities plan shall
ensure that school districts have a building maintenance plan.
Failure on the part of a school district to prepare an annual
facility plan and deliver it to the state board shall prohibit
that school district from receiving funds as provided in this
chapter.
(C) Upon receipt of the
facilities study and the facilities plan prepared by the school
districts, the department annually shall prepare a
prioritization report which ranks the needs of each school
district beginning with those most in need of school facilities
in accordance with the provisions of this chapter. Factors
which must be used by the department in creating its ranking
within the prioritization report are comprised of the
following:
(1)
the current condition of school facilities in each school
district;
(2)
school district population trends;
(3)
school district millage and fee levels;
(4)
school district financial health which includes whether
the school district has achieved balanced budgets;
(5)
ability of a school district to pay bonded indebtedness;
and
(6)
ability of a school district to incur debt, without the
necessity of a referendum, under the provisions of Section 15,
Article X of the Constitution.
(D) Each annual
prioritization report shall list the qualified school projects
required by each school district and a recommendation of those
qualified school projects which should be undertaken immediately
and cost in the aggregate not more than two hundred million
dollars. The department also shall provide a recommendation
within the prioritization report whether assistance for a
specific qualified school project of a particular school
district shall be by way of grants, loans or a combination of
both.
(E) All designs of
qualified school projects are subject to approval by the
department, which may periodically amend design standards to
improve the efficiency, safety, or effectiveness of each
qualified school project.
(F) All facilities
studies, facilities plans, prioritization reports, and related
material prepared by the department under this section must be
submitted to the state board for its approval and
implementation.
Section 59-158-190. The state board, with the assistance of the department, by regulation shall develop and implement financial incentives in the form of additional allocations of school facility funding under this chapter to encourage school districts and their governing bodies to combine their purchasing, procurement, accounting, food service, transportation, human resources, or other noninstructional functions with another school district or districts in the county or with an adjoining school district or districts in another county, or to consolidate with one or more other school districts in their county. Nothing in this section prevents a school district from receiving additional allocations in both categories. However, together with the additional allocations authorized by this section, the total allocations for all school districts may not exceed in any year the total amount of general obligation bonds authorized to be issued as provided by Section 59-158-310 for that year.
Section 59-158-200. In addition to all other provisions of this chapter, as a condition of receiving funds from the state board as provided in this chapter, the department shall require districts to undergo a thorough energy audit that highlights the operation of school buildings in terms of being energy efficient and as cost effective as possible. Designs for new school facilities to be built in whole or in part with funds provided under this chapter also must be as energy efficient and cost effective as possible. The state board may require recommendations made by the energy audit to be incorporated into existing facilities and into new facilities as a condition of receiving funds under this chapter to the extent funds are available to make these recommended energy improvements.
Section 59-158-210. To qualify for funding under this chapter, each school district shall meet the requirements of this chapter and any regulations promulgated pursuant to this chapter. Funds may be withheld from a school district by the state board when the Department of Education finds inappropriate reporting of facilities' needs, inappropriate use of funds, or other violations of this chapter, including the provisions of this section.
Section 59-158-220. Neither the state board, state department, nor any officer, employee, or committee of the state board or department acting on behalf of it, while acting within the scope of this authority, is subject to any liability resulting from carrying out any of the powers given in this chapter.
Section 59-158-230. By December 1, 2018, the State Board of Education shall recommend to the General Assembly changes to be made to this chapter regarding program objectives, appropriate funding levels, and funding allotments formulas.
Section 59-158-310. (A)
By January first of each year, the
facilities study, as originally completed or updated from time
to time, each facilities plan, as originally completed or as
updated from time to time, and the prioritization report, as
originally completed or as updated from time to time, must be
submitted by the state board to the following:
(1) Governor of South
Carolina;
(2) President Pro
Tempore of the South Carolina Senate;
(3) Speaker of the
South Carolina House of Representatives; and
(4) State Treasurer of
South Carolina;
(5) Chairman of the
House Ways and Means Committee;
(6) Chairman of the
Senate Finance Committee;
(7) Chairman of the
House Education and Public Works Committee; and
(8) Chairman of the
Senate Education Committee.
The above must be accompanied by a
certificate of the state board which contains the following
information:
(1) a description of
each qualified school project;
(2) an estimate of the
cost of each qualified school project; and
(3) certificates of the
State Auditor and State Treasurer setting forth the available
debt limit under Section 13(6)(c), Article X of the South
Carolina Constitution.
(B) Upon the review of
the information provided within this section, the General
Assembly may by proviso to the budget for the then fiscal year
or by joint resolution set the principal amount of the State
School Facilities General Obligation Bonds to be considered.
Section 59-158-320. Within thirty days after the effective date of the general appropriations bill or a joint resolution setting forth the amount of general obligation bonds which may be issued as provided in Section 59-158-310, the prioritization report, together with the certificate of the state board, must be submitted to the Joint Bond Review Committee for its review.
Section 59-158-330.
Thereafter, the prioritization report must be submitted to
the Authority, together with a resolution providing for the
issuance of bonds, with a certificate of the state board setting
forth the following:
(1) that it is
necessary for bonds to be issued in the amount proposed; and
(2) that the bonds are
being issued in accordance with Section 13(6)(c), Article X of
the South Carolina Constitution and Article 3 of this chapter.
Section 59-158-340. Those state entities charged with the responsibility of issuing or approving the issuance of these bonds are directed to synchronize their duties and functions under this chapter so that a continuous stream of revenue will be available to the school districts to defray the costs of qualified school projects.
Section 59-158-510. Following the receipt of the information presented pursuant to Section 59-158-330, the Authority, upon its approval, by resolution duly adopted, shall effect the issuance of the bonds, or pending the issuance of the bonds, effect the issuance of bond anticipation notes pursuant to Chapter 17, Title 11.
Section 59-158-520. In
order to effect the issuance of the bonds, the Authority shall
adopt a resolution providing for the issuance of the bonds
pursuant to the provisions of this chapter. The authorizing
resolution must include:
(1) the list of
qualified school projects and the estimated cost of each as set
forth in the prioritization report;
(2) schedules setting
forth the aggregate of all general obligation debt of the State,
excluding highway bonds, state institution bonds, tax
anticipation notes, and bond anticipation notes, together with
certificates of the State Treasurer and State Auditor evidencing
compliance with the provisions of Section 13(6)(c), Article X of
the South Carolina Constitution;
(3) a schedule showing
the aggregate of bonds issued, the purposes for which they were
issued, the annual payments required to retire the bonds, the
interest on the bonds, and the amount of any special funds
applicable to the retirement of outstanding bonds;
(4) the amount of bonds
to be issued; and
(5) a schedule showing
future annual principal requirements and estimated annual
interest requirements on the bonds to be issued.
Section 59-158-530. The bonds must bear the date and mature at the time that the resolution provides, except that no bond may mature more than thirty years from its date of issue. The bonds may be in the denominations, be payable in the medium of payment, be payable at the place and at the time, and be subject to redemption or repurchase and contain other provisions determined by the Authority before their issuance. The bonds may bear interest payable at the times and at the rates as determined by the Authority.
Section 59-158-540. All bonds issued under this chapter are exempt from taxation as provided in Section 12-2-50.
Section 59-158-550. All bonds issued under this chapter must be signed by the Governor and the State Treasurer. The Governor and the State Treasurer may sign these obligations by a facsimile of their signatures. The Great Seal of the State must be affixed to, impressed on, or reproduced upon each of them and each must be attested by the Secretary of State. The delivery of the bonds executed and authenticated is valid notwithstanding changes in officers or seal occurring after the execution or authentication.
Section 59-158-560. For the payment of the principal and interest on all bonds issued and outstanding pursuant to this chapter there is pledged the full faith, credit, and taxing power of the State of South Carolina, and in accordance with the provisions of Section 13(4), Article X of the South Carolina Constitution, the General Assembly hereby allocates on an annual basis sufficient tax revenues to provide for the punctual payment of the principal and interest on the bonds authorized by this chapter.
Section 59-158-570. Bonds must be sold by the Governor and the State Treasurer at public sale, after publication of notice of the sale one or more times at least seven days before the sale, in a financial paper published in New York City which regularly publishes notices of sale of state or municipal bonds. The right is reserved to waive technicalities or to reject all bids and to readvertise the bonds for sale. For the purpose of bringing about successful sales of the bonds, the Authority may do all things ordinarily and customarily done in connection with the sale of state or municipal bonds. All expenses incident to the sale of the bonds must be paid from the proceeds of the sale of the bonds.
Section 59-158-580. The proceeds of the sale of bonds must be received by the State Treasurer and applied to the purposes for which issued, except that the accrued interest, if any, must be used to discharge in part the first interest to become due on the bonds, but the purchasers of the bonds are not liable for the proper application of the proceeds to the purposes for which they are intended.
Section 59-158-590. It is lawful for all executors, administrators, guardians, and other fiduciaries to invest any monies in their hands in bonds issued pursuant to this chapter.
Section 59-158-600. The proceeds received from the issuance of bonds, after deducting the costs of issuance, must be deposited at the Office of State Treasurer and used to defray the costs of the qualified school projects as provided in the resolution of the Authority.
Section 59-158-610. The financial assistance received for a particular qualified school project must be used by that school district and its governing body for that qualified school project. The state board, together with the Office of State Treasurer, is responsible for establishing a program to ensure that the proceeds are utilized by the receiving school districts in accordance with the requirements of this chapter.
Section 59-158-620. The bonds are legal investments in which all public officers or public bodies of the State, its political subdivisions, all municipalities and political subdivisions, all insurance companies and associations and other persons carrying on insurance business, all banks, bankers, banking associations, trust companies, savings banks, savings associations, including savings and loan association investment companies, and other persons carrying on a banking business, all administrators, guardians, executors, trustees, and other fiduciaries, and all other persons who are now or may be authorized in the future to invest in bonds or other obligations of the State, may invest funds in their control or belonging to them. The bonds are also securities which may be deposited with and received by all public officers and bodies of the State or any agency or political subdivision of the State and all municipalities and public corporations for any purpose for which the deposit of bonds or other obligations of the State is now or may later be required by law.
Section 59-158-710. The State Board of Education shall establish a revolving fund with such monies as may be appropriated by the General Assembly to operate a grant program to provide nonrecurring aid to school districts for facility maintenance expenses to include roof and heating and air conditioning repairs or replacements. The state board must manage the fund and promulgate regulations setting forth the requirements for a school district to become an aid recipient. In making aid determinations, the state board by regulation must establish a priority system where school districts with the most critical needs shall receive priority funding first, based on the requirements developed by the state board in these regulations."
SECTION 2. Chapter 146, Title 59 of the 1976 Code is repealed.
SECTION 3. This act takes upon approval by the Governor. /
Renumber sections to conform.
Amend title to read:
/ TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 158 TO TITLE 59 SO AS TO ENACT THE "SOUTH CAROLINA EDUCATION SCHOOL FACILITIES ACT" TO PROVIDE FINANCIAL ASSISTANCE TO SCHOOL DISTRICTS IN ORDER TO ACQUIRE SCHOOL FACILITIES BY USING GENERAL OBLIGATION BONDS, AND OTHER FORMS OF ASSISTANCE, TO PROVIDE THAT THE STATE BOARD OF EDUCATION SHALL DETERMINE AND SELECT ON A PRIORITY BASIS, QUALIFIED SCHOOL PROJECTS WHICH SHALL RECEIVE FINANCIAL ASSISTANCE FROM THE STATE, TO PROVIDE FOR THE POWERS AND DUTIES OF THE STATE BOARD OF EDUCATION AND STATE DEPARTMENT OF EDUCATION IN THIS REGARD, AND TO PROVIDE FOR OTHER RELATED PROVISIONS IN CONNECTION WITH THE CONSTRUCTION OR RENOVATION OF SCHOOL FACILITIES; AND TO REPEAL CHAPTER 146, TITLE 59 RELATING TO THE STATE SCHOOL FACILITIES BONDS ACT WHICH AUTHORIZED THE ISSUANCE OF SPECIFIC DOLLAR AMOUNTS OF STATE SCHOOL FACILITIES BONDS WITHIN A SPECIFIED TIME PERIOD. /