2006 Utah Code - 53A-21-104 — School Building Revolving Account -- Access to the account.

     53A-21-104.   School Building Revolving Account -- Access to the account.
     (1) There is created a nonlapsing "School Building Revolving Account" administered within the Uniform School Fund by the state superintendent of public instruction in accordance with rules adopted by the State Board of Education.
     (2) Monies received by a school district from the School Building Revolving Account may not exceed the district's bonding limit minus its outstanding bonds.
     (3) In order to receive monies from the account, a school district must do the following:
     (a) levy a tax of at least .0024 for capital outlay and debt service;
     (b) contract with the state superintendent of public instruction to repay the monies, with interest at a rate established by the state superintendent, within five years of their receipt, using future state building monies or local revenues or both;
     (c) levy sufficient ad valorem taxes under Section 11-14-310 to guarantee annual loan repayments, unless the state superintendent of public instruction alters the payment schedule to improve a hardship situation; and
     (d) meet any other condition established by the State Board of Education pertinent to the loan.
     (4) (a) The state superintendent shall establish a committee, including representatives from state and local education entities, to:
     (i) review requests by school districts for loans under this section; and
     (ii) make recommendations regarding approval or disapproval of the loan applications to the state superintendent.
     (b) If the committee recommends approval of a loan application under Subsection (4)(a)(ii), the committee's recommendation shall include:
     (i) the recommended amount of the loan;
     (ii) the payback schedule; and
     (iii) the interest rate to be charged.
     (5) (a) There is established within the School Building Revolving Account the Charter School Building Subaccount.
     (b) The Charter School Building Subaccount shall consist of:
     (i) money appropriated to the subaccount by the Legislature;
     (ii) money received from the repayment of loans made from the subaccount; and
     (iii) interest earned on monies in the subaccount.
     (c) The state superintendent of public instruction shall make loans to charter schools from the Charter School Building Subaccount to pay for the costs of constructing or renovating charter school buildings.
     (6) (a) The state superintendent of public instruction shall establish a committee, which shall include individuals who have expertise or experience in finance, real estate, and charter school administration, one of whom shall be nominated by the governor to:
     (i) review requests by charter schools for loans under this section; and
     (ii) make recommendations regarding approval or disapproval of the loan applications to the state superintendent.
     (b) If the committee recommends approval of a loan application under Subsection (6)(a)(ii), the committee's recommendation shall include:
     (i) the recommended amount of the loan;
     (ii) the payback schedule; and

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     (iii) the interest rate to be charged.

Amended by Chapter 105, 2005 General Session