2005 Idaho Code - 33-1017 — SCHOOL SAFETY AND HEALTH REVOLVING LOAN AND GRANT FUND

                                  TITLE  33
                                  EDUCATION
                                  CHAPTER 10
                            FOUNDATION PROGRAM --
                          STATE AID -- APPORTIONMENT
    33-1017.  SCHOOL SAFETY AND HEALTH REVOLVING LOAN AND GRANT FUND. (1) Fund
created. There is hereby created a fund in the state treasury to be known as
the school safety and health revolving loan and grant fund to which shall be
credited all moneys that may be appropriated, apportioned, allocated and paid
back to that fund. Moneys in this fund shall be used exclusively as provided
in this section, except that moneys in this fund shall be returned to the
budget stabilization fund as provided in this section.
    (2)  Approval of loan or grant. A school district that does not have the
financial resources to abate unsafe or unhealthy conditions identified
pursuant to section 33-1613, Idaho Code, and which is eligible to seek
additional funds under subsection (5)(b)(ii) of section 33-1613, Idaho Code,
may apply to the state treasurer for a loan and, if eligible, a grant from the
safety and health revolving loan  and grant fund. A school district that has
borrowed money from the Idaho safe school facilities loan program may apply
for a grant of interest from the safety and health revolving loan and grant
fund. The loan or grant shall be approved if the school district's application
meets the criteria of section 33-1613, Idaho Code, and of this section. If the
board of examiners finds that existing and anticipated loans or grants under
this section have depleted the school safety and health revolving loan and
grant fund to an extent that the fund does not have available sufficient
moneys to loan to an eligible school district, the board of examiners shall
declare that additional loans  may be made from the budget stabilization fund
in section 57-814, Idaho Code, up to any limits of the use of that fund
provided by statute or declared by the governor in time of general revenue
shortfalls or major disaster.
    (3)  Conditions of loan or grant -- Repayment of loan.
    (a)  The school district's application shall identify the unsafe or
    unhealthy conditions that would be abated with the proceeds of the loan or
    grant and, if a loan, shall propose a method of and timetable for abating
    those conditions and for repaying the loan.
    (b)  The state treasurer shall review the application to determine whether
    the application is for abatement of unsafe or unhealthy conditions as
    described in section 33-1613, Idaho Code, and to determine whether the
    estimated costs of abatement and proposed plan of abatement is reasonable.
    In reviewing the application, the state treasurer may call upon the
    assistance of the state division of building safety, the state fire
    marshal, the state department of administration, the state board of
    education, the state department of education, or other knowledgeable
    persons to determine whether conditions identified to be abated meet the
    criteria of section 33-1613, Idaho Code, and to determine whether the plan
    of abatement, estimated costs of abatement and proposed methods of
    abatement are reasonable. The state treasurer shall process the
    application for a loan or grant within thirty-five (35) days after its
    receipt.
         (i)   If the state treasurer determines that the application has not
         identified unsafe or unhealthy conditions as described in section
         33-1613, Idaho Code, the state treasurer shall return the application
         with a written statement that contains reasons why the loan or grant
         application does not meet the criteria of this section and of section
         33-1613, Idaho Code.
         (ii)  If the state treasurer determines that the application has
         identified unsafe or unhealthy conditions as described in section
         33-1613, Idaho Code, the state treasurer shall then determine whether
         the application has proposed reasonable methods of and reasonable
         estimates of costs of abatement. The state treasurer shall approve
         the plan of abatement if the school district has proposed a
         reasonable method of abatement and if its estimated costs of
         abatement are reasonable; otherwise, the state treasurer shall return
         the application with a written statement how the application can be
         amended to qualify.
    (c)  If the application is for a loan, the state treasurer may accept the
    school district's proposed method of and timetable for repaying the loan
    or may impose reasonable alternative or substitute methods of and
    timetables for repayment consistent with this subsection, which
    alternative or substitute methods shall be binding on the school district.
    At a minimum, the school district shall be required to repay in each
    fiscal year succeeding the year of the loan an amount no less than the
    lottery proceeds that the school district would otherwise receive for that
    fiscal year and additional foundation support moneys, if any, accruing as
    a result of an initial overestimation of state average daily attendance
    support units and later distribution of residual amounts resulting from
    fewer support units than originally estimated. The loan shall provide for
    the school safety and health revolving loan and grant fund, or the budget
    stabilization fund, to the extent that it was the source of the loan, to
    intercept the lottery proceeds that would otherwise go to the school
    district until the loan is fully repaid. In addition, the state treasurer
    may impose reasonable fiscal conditions on the school district during the
    term of loan repayment including, but not limited to, restrictions in use
    of otherwise unrestricted school district moneys to assist in repayment of
    the loan or in abatement of unsafe or unhealthy conditions, the
    declaration of a financial emergency during some or all of the term of
    repayment of the loan, or interception by the school safety and health
    revolving loan and grant fund of a portion of the state foundation program
    payments under chapter 10, title 33, Idaho Code, that would otherwise go
    to the school district to repay the loan. The initial term of the loan
    shall not exceed ten (10) years, but may be extended in the state
    treasurer's discretion for another ten (10) years.
    (d)  If a loan is approved, the state treasurer shall establish a line of
    credit for the school district and monthly reimburse the school district
    for costs incurred to abate the unsafe or unhealthy conditions identified
    as the reason for the loan. The state treasurer may prescribe forms and
    procedures for administration of this line of credit.
    (e)  A school district may repay its loan or any portion of its loan in
    advance at any time without penalty.
    (4)  Interest. Loans to school districts under this section shall bear
interest at the average rate of interest that would be available to the state
treasury were the loan funds retained in the state treasury, as determined by
the state treasurer.
    (5)  Certification of loan funds spent. If a school district obtains a
loan pursuant to this section, the board of trustees shall certify the total
expenditures of loaned funds that were actually spent to abate unsafe and
unhealthy conditions.
    (6)  Excess funds. If any funds loaned pursuant to this section were not
spent on abatement of unsafe and unhealthy conditions, they must be returned
to the school safety and health loan and grant fund or the budget
stabilization fund, as the case may be. This subsection shall be judicially
enforceable by the state treasurer, and any amounts due for repayment under
this subsection may be recovered by offset from state foundation program
moneys that would otherwise be paid to the school district.
    (7)  Eligibility for grant. After complying with the provisions of section
33-1613, Idaho Code, school districts that borrow money from the Idaho safe
schools facilities loan program pursuant to section 33-804A, Idaho Code, or
that refinance through the Idaho safe schools facilities loan program loans
for money borrowed under this section or that finance abatement of unsafe and
unhealthy conditions through indebtedness pursuant to chapter 11, title 33,
Idaho Code, may apply for a grant from the school safety and health revolving
loan and grant fund to pay for eligible interest costs incurred on loan
proceeds used to abate unsafe and unhealthy conditions. If the school
district's application for a grant is accepted, then the school district will
qualify for a grant of the present value of the qualifying percentage of the
interest costs of the loan associated with abating unsafe and unhealthy
conditions as follows:
    (a)  If the school district is participating in the Idaho safe schools
    facilities loan program, within seven (7) days after the approved school
    district receives loan proceeds from the Idaho safe schools facilities
    loan fund, the state treasurer shall provide funds to the school district
    in the amount of the qualifying percentage of the present value of the
    interest costs associated with abating unsafe and unhealthy conditions.
    (b)  If a school district has obtained a loan from the school health and
    safety revolving loan and grant fund and has refinanced its loan through
    the Idaho safe schools facilities program and prepays the outstanding
    principal of its loan, the school district shall be eligible for a grant
    of the qualifying percentage of the present value of the outstanding
    interest costs associated with the prepaid principal.
    (c)  If the school district has financed the abatement of unsafe or
    unhealthy conditions through indebtedness pursuant to chapter 11, title
    33, Idaho Code, within seven (7) days after the school district receives
    bond proceeds, the state treasurer shall provide funds to the school
    district in the amount of the qualifying percentage of the present value
    of the interest costs associated with abating unsafe and unhealthy
    conditions.
    (8)  Present value. The present value of the interest costs associated
with money borrowed under the Idaho safe schools facilities loan program shall
be calculated by the state treasurer using a method of equal annual loan
payments and a discount rate of the interest rate prescribed in subsection (4)
of this section on the date that the school district receives funds from the
Idaho safe schools facilities loan fund. The present value of the unpaid
interest costs for principal prepayments to the school safety and health
revolving loan and grant fund shall be calculated by the state treasurer by
summing the unpaid interest that would be paid without the principal
prepayment and discounting it at the interest rate prescribed in subsection
(4) of this section on the date that the treasurer receives the prepayment.
The present value of the interest costs associated with money borrowed by a
school district in a bond issue shall be calculated by the state treasurer
using the school district's actual schedule for making interest  payments on
the bonds and discounting those interest payments by the interest rate
prescribed in subsection (4) of this section on the date that the school
district receives funds from the bond issue.
    (9)  Qualifying percentage. The qualifying percentage of the interest
costs of a school district applying for a grant of interest under this section
shall be determined as follows: For a school district borrowing money under
the Idaho safe schools facilities loan program or refinancing a loan made
under this section with money borrowed under the Idaho safe schools facilities
program or incurring bonded indebtedness for safe and healthy schools, the
state treasurer shall express:
    (a)  the total of the bond and plant facilities levies imposed by the
    school district (including the levy for which the application is made),
    and
    (b)  the total levies imposed by the school district (including the levy
    for which the application is made)
as a fraction of assessed value for the most recent assessment against which
the school district's existing levies are made.
    The qualifying percentage of interest granted under this section shall be
the higher of the amounts shown in the following tables:
                  Table 1 - Bond and Plant Facilities Levies
Bond Plus Plant Facilities Levy                          Qualifying Percentage
Less than .0019............................................................10%
More than .0019 and less than .0029........................................20%
More than .0029 and less than .0039........................................30%
More than .0039............................................................40%
                            Table 2 - Total Levies
Total Levy                                               Qualifying Percentage
Less than .0060.............................................................0%
More than .0060 and less than .0072........................................25%
More than .0072 and less than .0084........................................50%
More than .0084 and less than .0096........................................75%
More than .0096...........................................................100%
    (10) Interest costs for abatement of unsafe and unhealthy conditions. The
interest costs for abatement of unsafe and unhealthy conditions shall be
calculated by determining the percentage of the loan proceeds or prepayment of
the loan that will be used to abate unsafe and unhealthy conditions.
    (11) Procedures. The state treasurer may prescribe forms for applying for
a loan or grant under this section. No actions taken under this section are
contested cases or rulemaking subject to chapter 52, title 67, Idaho Code, and
none of the contested case or rulemaking procedures of chapter 52, title 67,
Idaho Code, apply to actions taken under this section.
    (12) The state treasurer's authority to accept applications for and to
approve grants of interest from the school safety and health revolving loan
and grant fund shall cease on July 1, 2003.