HB 1204 — create the South Dakota school construction fund, provide for the transfer of moneys to the fund, and make an appropriation therefor.

1204C26.232.18 101st Legislative Session 1204 South Dakota Legislature House Bill 1204 AMENDMENT 1204C FOR THE INTRODUCED BILL Introduced by:

Representative Uhre‑Balk An Act to create the South Dakota school building construction fund, provide for the transfer of moneys to the fund, and make an appropriation therefor.

There is created the South Dakota school building construction loan fund, to be administered by the Department of EducationEducation, commissioner of school and public lands, for the purpose of making loans to school districts to construct or expand a school building, as provided in section 2 of this Act.

Money in the fund designated for loans is continuously appropriated through the general appropriation bill for the purposes provided in section 2 of this Act.

The secretary of the department commissioner shall approve vouchers, and the state auditor shall draw warrants to pay expenditures authorized from this fund.

The Department of Education commissioner of school and public lands may make loans from the South Dakota school building construction fund, created in section 1 of this Act, to a school district for the purpose of constructing or expanding a school building.

The department commissioner may use up to one percent of the principal amount of a loan to offset the department's expenses in administering the loan.

Any loan made by the department commissioner must be provided to the district at an interest rate of zero percent.

The terms of the loan must require that the payments be based on a straight and level amortization of twenty years and be made annually over a term of twenty years, with the first payment due one year from the date of the funding of the loan.

1204C26.232.18 2 1204 The termsdepartment ofshall themake loanavailable mustmoneys requirefrom that the paymentsSouth beDakota basedschool onconstruction afund, straightcreated andin levelsection amortization1 of twentythis yearsAct, andas befollows: made annually over a term of twenty years, with the first payment due one year from the date of the funding of the loan.

The department shall make available moneys from the South Dakota school construction fund, created in section 1 of this Act, as follows:

or (2) The municipality in which the district is headquartered is less than ten miles from a municipality in which another school district is headquartered;

or (3) The school district has a fall enrollment of fewer than two one hundred fifty students and is not designated as a sparse school district, as defined in § 13-13-13-13-78. 78.

The School Finance Accountability Board within the Department of Education commissioner of school and public lands shall promulgate rules, pursuant to chapter 1-1-26, 26, specifying:

(b) The department commissioner reviews, assesses, and approves a school district's application;

and (c) The department commissioner disburses a loan to a school district;

Overstrikes(b) indicateThe deletedamount language.of money the district has transferred and the number of transfers the district has made from the capital outlay fund, pursuant to § 13-16-6 during the previous ten years;

1204C 3 1204 (b) The amount of money the district has transferred and the number of transfers the district has made from the capital outlay fund, pursuant to § 13-16-6 during the previous ten years;

and (3)Overstrikes Theindicate criteriadeleted bylanguage. which the department commissioner assesses a school district's application for a loan in accordance with section 2 of this Act, including:

(a)26.232.18 3 1204 (3) The minimumcriteria amountby ofwhich money,the indepartment proportionassesses toa theschool district's fallapplication enrollment,for thata whichloan mustin currentlyaccordance bewith insection a2 district'sof capitalthis outlayAct, fund;including:

(a) The minimum amount of money, in proportion to the district's fall enrollment, that must currently be in a district's capital outlay fund;

On or before August first of each year, the Department of Education commissioner of school and public lands shall submit a report to the special committee, created in § 4-4-8A-2, 8A-2, detailing the number, amounts, and recipients of loans provided by from the South Dakota school building construction fund created in section 1 of this Act, and other relevant information pertaining to the fund or program, as requested by the committee.

The state treasurer shall transfer $1 from the general fund to the South Dakota school building construction fund created in section 1 of this Act.

The amount transferred in this section is appropriated to the Department of Education commissioner of school and public lands for the purpose described in section 2 of this Act.