State Codes and Statutes
Statutes > Utah > Title-53a > Chapter-21 > 53a-21-40153A-21-401. Capital Outlay Loan Program -- School Building Revolving Account --Access to the account.
(1) There is created:
(a) the "Capital Outlay Loan Program" to provide:
(i) short-term help to school districts to meet district needs for school buildingconstruction and renovation; and
(ii) assistance to charter schools to meet school building construction and renovationneeds; and
(b) a nonlapsing "School Building Revolving Account" administered within the UniformSchool Fund by the state superintendent of public instruction in accordance with rules adopted bythe State Board of Education.
(2) The State Board of Education may not allocate funds from the School BuildingRevolving Account that exceed a school district's bonding limit minus its outstanding bonds.
(3) In order to receive money from the account, a school district shall:
(a) levy a combined capital levy rate of at least .0024;
(b) contract with the state superintendent of public instruction to repay the money, withinterest at a rate established by the state superintendent, within five years of receipt, using futurestate capital outlay allocations, local revenues, or both;
(c) levy sufficient ad valorem taxes under Section 11-14-310 to guarantee annual loanrepayments, unless the state superintendent of public instruction alters the payment schedule toimprove a hardship situation; and
(d) meet any other condition established by the State Board of Education pertinent to theloan.
(4) (a) The state superintendent shall establish a committee, including representativesfrom 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 tothe 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 CharterSchool Building Subaccount administered by the State Board of Education, in consultation withthe State Charter School Board, in accordance with rules adopted by the State Board ofEducation.
(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 money in the subaccount.
(c) The state superintendent of public instruction shall make loans to charter schoolsfrom the Charter School Building Subaccount to pay for the costs of:
(i) planning expenses;
(ii) constructing or renovating charter school buildings;
(iii) equipment and supplies; or
(iv) other start-up or expansion expenses.
(d) Loans to new charter schools or charter schools with urgent facility needs may begiven priority.
(6) (a) The State Board of Education shall establish a committee to:
(i) review requests by charter schools for loans under this section; and
(ii) make recommendations regarding approval or disapproval of the loan applications tothe State Charter School Board and the State Board of Education.
(b) (i) A committee established under Subsection (6)(a) shall include individuals whohave expertise or experience in finance, real estate, or charter school administration.
(ii) Of the members appointed to a committee established under Subsection (6)(a):
(A) one member shall be nominated by the governor; and
(B) the remaining members shall be selected from a list of nominees submitted by theState Charter School Board.
(c) 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
(iii) the interest rate to be charged.
(d) The committee members may not:
(i) be a relative, as defined in Section 53A-1a-518, of a loan applicant; or
(ii) have a pecuniary interest, directly or indirectly, with a loan applicant or any person orentity that contracts with a loan applicant.
(7) The State Board of Education, in consultation with the State Charter School Board,shall approve all loans to a charter school under this section.
(8) The term of a loan to a charter school under this section may not exceed five years.
(9) The State Board of Education may not approve loans to charter schools under thissection that exceed a total of $2,000,000 in any year.
Amended by Chapter 162, 2010 General Session
