[§302A-1608]  Accounting and expenditurerequirements.  (a)  Each designated school impact district shall be aseparate benefit district.  Fees collected within each school impact districtshall be spent only within the same school impact district for the purposescollected.

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

(c)  Fee in lieu funds may be used for expensesrelated 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 themaintenance or operation of existing schools in the district, constructioncosts, including architectural, permitting, or financing costs, oradministrative expenses.

(d)  Impact fees for the construction costcomponent shall be used only for the costs of new school facilities thatexpands the student capacity of existing schools or adds student capacity innew schools.  School impact fees may not be used to replace an existing schoollocated within the same school impact district, either on the same site or on adifferent site.  In the event of closure, demolition, or conversion of anexisting permanent department facility within a school impact district that hasthe effect of reducing student capacity, an amount of new student capacity inpermanent buildings equivalent to the lost capacity shall be funded withnon-school impact fee revenue.  Eligible construction costs include but are notlimited to planning, engineering, architectural, permitting, financing, andadministrative expenses, and any other capital equipment expenses pertaining toeducational facilities.  Impact fees for the construction cost component shall notbe expended for:

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

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

(3)  Portable or temporary facilities.

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