[§302A-1608]  Accounting and expenditure
requirements.  (a)  Each designated school impact district shall be a
separate benefit district.  Fees collected within each school impact district
shall be spent only within the same school impact district for the purposes
collected.



(b)  Land dedicated by the developer shall be
used only as a site for the construction of one or more new schools or for the
expansion of existing school facilities.  If the land is never used for the
school facility, it shall be returned to the developer, or the developer's
successor in interest.  Once used, the land may be sold, with the proceeds used
to acquire land for school facilities in the same school impact district.



(c)  Fee in lieu funds may be used for expenses
related to acquiring a piece of land, including but not limited to surveying,
appraisals, and legal fees.  Fee in lieu funds shall not be used for the
maintenance or operation of existing schools in the district, construction
costs, including architectural, permitting, or financing costs, or
administrative expenses.



(d)  Impact fees for the construction cost
component shall be used only for the costs of new school facilities that
expands the student capacity of existing schools or adds student capacity in
new schools.  School impact fees may not be used to replace an existing school
located within the same school impact district, either on the same site or on a
different site.  In the event of closure, demolition, or conversion of an
existing permanent department facility within a school impact district that has
the effect of reducing student capacity, an amount of new student capacity in
permanent buildings equivalent to the lost capacity shall be funded with
non-school impact fee revenue.  Eligible construction costs include but are not
limited to planning, engineering, architectural, permitting, financing, and
administrative expenses, and any other capital equipment expenses pertaining to
educational facilities.  Impact fees for the construction cost component shall not
be expended for:



(1)  Any costs related to the acquisition of land;



(2)  The maintenance or operation of existing schools
in the district; or



(3)  Portable or temporary facilities.



(e)  Impact fees and fees in lieu shall be
expended or encumbered within twenty years of the date of collection.  Fees
shall be considered spent or encumbered on a first-in, first-out basis.  An
expenditure plan for the impact fees shall be incorporated into the annual
budget process of the department and subject to legislative approval of the
budget. [L 2007, c 245, pt of §2]