H 4547 Session 111 (1995-1996)
H 4547 General Bill, By Stuart, J. Brown, T. Brown, A.W. Byrd, Cave, Clyburn,
Cobb-Hunter, Cotty, J.G. Felder, Gamble, Govan, J.L. Harris, P.B. Harris,
Harvin, M. Hines, J.H. Hodges, Inabinett, Kelley, Kennedy, Knotts, Koon, Lloyd,
J.G. McAbee, McMahand, J.H. Neal, Neilson, Phillips, Rhoad, Riser,
J.S. Shissias, Spearman, Wilder and Wilkes
A Bill to amend Title 59, Code of Laws of South Carolina, 1976, relating to
education, by adding Chapter 144 so as to enact the "Public School Facilities
Assistance Act", to make funds available to construct and renovate public
school and facilities, and provide for the manner in which and procedures by
which these funds shall be allocated to the various recipients.
02/06/96 House Introduced and read first time HJ-174
02/06/96 House Referred to Committee on Education and Public
Works HJ-174
A BILL
TO AMEND TITLE 59, CODE OF LAWS OF SOUTH
CAROLINA, 1976, RELATING TO EDUCATION, BY ADDING
CHAPTER 144 SO AS TO ENACT THE "PUBLIC
SCHOOL FACILITIES ASSISTANCE ACT", TO MAKE
FUNDS AVAILABLE TO CONSTRUCT AND RENOVATE
PUBLIC SCHOOL AND FACILITIES, AND PROVIDE FOR THE
MANNER IN WHICH AND PROCEDURES BY WHICH THESE
FUNDS SHALL BE ALLOCATED TO THE VARIOUS
RECIPIENTS.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. Title 59 of the 1976 Code is amended by adding:
"CHAPTER 144
Public School Facilities Assistance Act
Article 1
General Provisions
Section 59-144-10. This chapter may be cited as the `Public
School Facilities Assistance Act'. Funds available from the
Educational Assistance Endowment Fund, as established in Chapter
143 of this title, must be used for the purposes of the Public School
Facilities Assistance Act as provided in this chapter.
Section 59-144-20. For the benefit of the people of the State and
the increase of their commerce, welfare, and prosperity, it is
essential that the school districts of this State be assisted in
obtaining adequate school facilities to assist youth in achieving the
required levels of learning. It is the purpose of this chapter to
provide a measure of assistance to the school districts of this State
in securing the facilities and structures which are needed to
accomplish the goals and purposes of public education, all to the
public benefit and good, to the extent and manner provided in this
chapter.
Section 59-144-30. Funds made available through this chapter
must be used for permanent school instructional facilities and fixed
equipment including the costs for construction, improvement,
enlargement, or renovation of public school facilities. However,
after all construction and renovation needs identified in a district's
school facilities improvement plan have been met, the district may
request to use its allocation for payment of debt service. As used in
this chapter, `school facilities' only includes facilities necessary for
instructional and related 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' does not include unimproved real property, centralized
district administration facilities, portable classrooms, or other
facilities, including those normally identified with interscholastic
sports activities.
Section 59-144-40. There is created the School Facilities
Assistance Authority, hereinafter in this chapter referred to as the
`authority'. The authority is declared to be a state agency and may
exercise any power conferred upon it by this chapter in the
performance of its duties and responsibilities. The authority shall
consist of the members of the State Budget and Control Board who
shall serve ex officio, and all the functions and powers of the
authority under this chapter are hereby conferred upon the State
Budget and Control Board in order to perform its duties and
responsibilities under this chapter.
Section 59-144-50. In order to immediately assist school districts
with their instructional facilities' needs, the authority may declare
that up to two hundred million dollars shall be allotted to the
several districts of this State for each of the first three fiscal years
after the effective date of this chapter, including the year this
chapter is enacted. However, the authority shall declare annually
the amount to be allotted under this chapter for that year in order to
assist with the instructional facilities' needs of the school districts
and as is prudent to meet the requirements of the Educational
Assistance Endowment Fund over time. A school district may
accumulate its allotments for up to seventy-two months to meet the
facilities' needs identified in its capital improvement plan.
Section 59-144-60. Of the total amount made available for
allotments to the school districts, a specified amount must be set
aside for a Special Needs Grants program by the authority. These
funds must be used pursuant to Section 59-144-220 for established
critical needs where a lack of financial resources prevents
significant progress in meeting those needs. The funding for this
Special Needs Grants program shall not exceed ten percent of the
total funds available for allotments to the school districts. Any
unallocated funds from the Special Needs Grants program must be
reallocated annually to the school districts using the formula
established by this chapter.
Article 2
School Facilities Assistance Allocation
Section 59-144-100. Funds made available under this chapter
must be allotted annually to the school districts using formulas
based on facilities' needs, past fiscal effort in providing for
facilities, and district wealth. This allocation shall be made in the
following manner: (a) Fifty percent of the funds allocated
annually to the several school districts for facilities' needs must be
distributed based on a standardized assessment of the districts'
needs for facilities using a uniform estimate of costs as established
in Section 59-144-120. Individual district allotments must be based
on the district facilities' need relative to the state total facilities'
need. For the first year's allotment, however, the school districts'
facilities' needs must be defined as the amount of needs reported in
the 1994 Department of Education Facilities Report. For the first
two years of the program, district allotments must be adjusted for
an overstatement or an understatement of need. As the uniform
assessment of needs and the standardized cost allowances are
implemented and as district facilities' needs are verified, subsequent
district allotments must be adjusted to correct for an overstatement
of needs in any previous year.
(b) Twenty-five percent of the funds allocated annually to the
school districts must be distributed based on equalized effort
defined as the prior five years' average expenditures for capital
projects and debt service, including lease-purchase obligations, for
school instructional facilities divided by the average assessed value
of all property subject to ad valorem school taxation and adjusted to
reflect an equalized per pupil mill value. Individual district
allotments must be based on a district's equalized effort relative to
the state total equalized effort. The amount included for
lease-purchase obligations shall not include the costs of utilities or
operation and maintenance of the leased facility.
(c) Twenty-five percent of the funds allocated annually must be
distributed based on relative district wealth. Individual district
allotments must be based on the prior year's Education Finance Act
allocation relative to the state total allocation except that an
adjustment must be made to provide a minimum factor as
established by the State Board of Education so that a district shall
qualify for a minimum amount of funding.
(d) A district's annual allotment must be the sum of the three
amounts calculated as provided in this section. Funds from a
district's allotment shall be made available as needed once approval
is received from the State Board of Education pursuant to Chapter
23 of this title.
Section 59-144-110. The State Board of Education shall
establish and appoint a twenty-member advisory committee to assist
in developing guidelines, regulations, and standards pursuant to this
chapter. The State Superintendent of Education shall recommend
members for the advisory committee which shall include individuals
with backgrounds in the following areas:
(a) capital improvements financing;
(b) building construction;
(c) school building design;
(d) district finances;
(e) district administration;
(f) local boards of trustees;
(g) classroom instruction; and
(h) educational facilities requirements at the primary,
elementary, middle, and high school levels.
Members of the committee shall receive mileage, subsistence, and
per diem as provided by law for members of state boards,
committees, and commissions to be paid from Public School
Facilities Assistance Act funds. The members of the advisory
committee shall serve at the pleasure of the State Board of
Education.
Section 59-144-120. The State Board of Education
responsibilities in regard to this chapter include:
(1) adopting policies, guidelines, and standards for a
comprehensive school facility survey with annual updates to be
undertaken by every district. The survey shall include a description
of all existing school facilities and a list of needed renovations,
modifications, and new construction projects. The Department of
Education shall provide consultation and technical assistance with
regard to the survey. The survey must be filed with the Department
of Education and may be revised by the district following
established guidelines. No school district which has not assisted
with and complied with this survey is eligible to receive funds
under this chapter. This comprehensive survey shall serve as the
basis for a uniform statewide school facilities inventory and data
base on building conditions and maintenance management. To this
end, the Department of Education shall review district surveys to
ensure complete and uniform reporting;
(2) adopting policies, guidelines, and regulations for district
five-year comprehensive school facilities' improvement plans with
annual updates. Local school district facilities construction plans
shall include, but are not limited to, a list of construction projects
currently eligible for funding under this chapter, school facilities
projected as needed five years in the future, and proposed new
construction, alterations, and renovations as appropriate for
instructional programs to be listed in priority order;
(3) developing policies, guidelines, 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 allotment of funds under Section 59-144-100.
Facilities' needs include, but are not limited to, facility need
capacity and condition, space requirements, program standards, and
pupil growth. Costs 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 formula allotment purposes and are not intended
to limit district options in determining the most appropriate manner
in which to meet individual district needs;
(4) developing policies and guidelines for school districts to
notify the State Board of Education of the anticipated times of
expenditures from district allotments;
(5) adopting policies, standards, and regulations to ensure the
accuracy of district reporting required under this chapter and the use
of funds disbursed under this chapter; and
(6) establishing policies, standards, and regulations for
determining projects eligible for funding under the Special Needs
Grants program due to:
(a) extraordinary growth of student population in excess of
the efficient operating capacity of existing facilities;
(b) replacement of educational facilities certified by the
Department of Education as hazardous to health and safety;
(c) needed renovations, modernization, or replacement of
educational facilities in order to correct deficiencies which produce
educationally obsolete or inaccessible environments;
(d) natural disasters; and
(e) consolidation of school attendance areas to improve
efficiency and offer a broader range of educational programs for
students.
Section 59-144-130. Every three years by December first
beginning with the year 1998, the State Board of Education shall
report to the General Assembly the projected five-year school
facilities' improvement requirements reported by the school
districts, the needs identified since the last report, and those
previously identified needs addressed since the last report.
Section 59-144-140. The Department of Education's
responsibilities shall include:
(1) providing staffing assistance to the State Board of Education
and the advisory committee in the development of policies,
guidelines, standards, and regulations implementing this chapter;
(2) providing technical assistance to school districts in
completing the comprehensive school facilities' survey and annual
updates and assisting districts in developing their five-year
comprehensive school facilities' improvement plans;
(3) 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. To assist with the inspection of construction
projects, the State Board of Education may designate selected local
units of administration which have staff qualified to conduct the
inspections to act on behalf of the Department of Education; and
(4) reviewing each district's school facility surveys, funding
applications, and financial reports to ensure compliance with the
intent of this chapter.
Section 59-144-150. To qualify for funds under this chapter,
each school district shall meet the conditions and qualifications
provided for in this chapter. Funds must be withheld from districts
when inappropriate reporting of facilities' needs is found or when
inappropriate use of funds is documented.
Section 59-144-160. To accomplish the statewide uniform
facilities' inventory and data base and to assist districts with the
comprehensive facilities' improvement plans, the authority shall
release to the Department of Education for this purpose up to two
hundred thousand dollars from Public School Facilities Assistance
Act funds for each of the first three years after the effective date of
this chapter including the year this chapter is enacted. The
department may carry forward these funds for use for the same
purpose in subsequent years.
Section 59-144-170. By December 1, 1998, 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 allotment formulas.
Article 3
Special Needs Grants
Section 59-144-200. Special Needs Grants funding shall be
made available to school districts through the Joint Bond Review
Committee. Facilities' needs approved by State Board of Education
and determined to be eligible for this Special Needs Grants program
must be forwarded to the Joint Bond Review Committee for a
determination of the projects to be funded annually.
Section 59-144-210. The State Board of Education shall report
to the Joint Bond Review Committee the applications for projects
which are eligible for Special Needs Grants funding. The Joint
Bond Review Committee shall rank the eligible projects by priority
statewide on the basis of facility need capacity and condition,
district ability to fund, pupil growth, and district past efforts to fund
instructional facilities. The grants provided under this Special
Needs Grants program for eligible educational facilities do not need
to be identical among all grant recipients, but may take into
consideration a district's fiscal capacity and past efforts to meet
facility needs.
Section 59-144-220. To assist school districts of this State in
providing adequate school facilities under the Special Needs Grants
program, the Joint Bond Review Committee may enter into grant
agreements with school districts to finance a portion of the cost of a
project due to:
(1) extraordinary growth of student population in excess of
the efficient operating capacity of existing facilities;
(2) replacement of educational facilities certified by the
Department of Education as hazardous to health and safety;
(3) needed renovations, modernization, or replacement of
educational facilities in order to correct deficiencies which produce
educationally obsolete or inaccessible environments;
(4) natural disasters; and
(5) consolidation of school attendance areas to improve
efficiency and offer a broader range of educational programs for
students.
Section 59-144-230. Before implementing the Special Needs
Grants program, the Joint Bond Review Committee, in conjunction
with the State Board of Education, shall adopt regulations as needed
to implement the program, including:
(1) any continuing requirements that must be met by a school
district and by a project after the giving of state grants or during the
term of the grant;
(2) requirements for the planning, design, construction, and
completion of a project or portion of a project to be financed in
whole or in part with a state grant, to be consistent with existing
provisions of law and State Board of Education regulations and
guidelines;
(3) the manner in which a participating school district shall
give evidence of satisfactory financing for that portion of the school
district's match which shall be required as part of the grant
agreement with the district.
Section 59-144-240. A school district's match for the Special
Needs Grants program may be met in whole or in part with current
funds on hand, district allotment from the school building fund, and
the Education Improvement Act building fund, or from the proceeds
of local obligations, including general obligation bonds, use
agreements, or similar obligations.
Section 59-144-250. A district which has not complied with the
requirements of Section 59-144-120 is not eligible to receive funds
from the Special Needs Grants program. Funds from a district's
allotment shall be made available as needed once approval for the
project is received from the State Board of Education pursuant to
Chapter 23 of this title. Funds shall be withheld from districts
when inappropriate reporting of facilities' needs is found or when
inappropriate use of funds is documented.
Article 4
School Facilities Assistance for School Districts
Section 59-144-300. The authority, in its role as manager of the
Educational Assistance Endowment Fund, may assist school districts
of this State in providing school facilities, and for this purpose the
authority may:
(1) adopt regulations for the conduct of its affairs and business;
(2) adopt an official seal and alter it;
(3) maintain an office at a place it designates;
(4) sue and be sued in its own name;
(5) use such state funds as appropriated by the General
Assembly for the purposes of this chapter;
(6) do all things necessary or convenient to carry out the
purposes of this chapter.
Section 59-144-310. In addition to any other contractual
remedies, a grant agreement may be enforced according to its terms
and conditions in the circuit court of this State, and the court may
utilize the process of injunction or mandamus to effect the
enforcement of the agreement.
Section 59-144-320. School districts may perform acts, take
actions, adopt proceedings, and make and carry out grant
agreements which are contemplated by this chapter. The grant
agreements do not need to be identical among all participants in the
financing of the authority but may be structured as determined by
the authority according to the needs of the participating school
districts and the authority.
Section 59-144-330. All expenses incurred in carrying out the
provisions of this chapter are payable solely from funds as
prescribed in this chapter and no liability may be incurred by the
authority beyond monies provided under the provisions of this
chapter. The State may make allocations or grants of money or
property to the authority to enable it to carry out its purposes and
for the exercise of its powers. This section may not be construed to
limit any other power to make grants to the authority.
Article 5
Other Entity Funding
Section 59-144-400. The Department of Juvenile Justice, the
Wil Lou Gray Opportunity School, the John de la Howe School,
and the South Carolina School for the Deaf and the Blind also shall
be annually allocated funds from the Educational Assistance
Endowment Fund for facilities needs on a per pupil basis using on
weighted pupil units for one hundred percent of their allocations.
For purposes of these allocations only, all pupils of these schools
are considered K-12 pupils.
Section 59-144-410. Notwithstanding any other provision of this
chapter, a district that participates in a multi-district career center
shall distribute to the center a portion of the district's allocation
under this chapter on a per pupil basis based on the percentage of
time its students spend at the career center.
Section 59-144-420. The entities referred to in Section
59-144-400 also are eligible for special needs grants in the manner
the Joint Bond Review Committee shall determine. Facilities needs
of these entities and the resulting special needs grant allotments also
shall be determined by the Joint Bond Review Committee in the
same manner school district needs and special needs grant
allotments are determined to the extent possible."
SECTION 2. This act takes effect upon approval by the
Governor.
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