15.1-36 School Construction - North Dakota Statutes

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CHAPTER 15.1-36SCHOOL CONSTRUCTION15.1-36-01.(Effective through June 30, 2011) School construction projects -Approval.1.Notwithstanding the powers and duties of school boards provided by law, the
superintendent of public instruction shall approve the construction, purchase, repair,
improvement, modernization, or renovation of any public school building or facility
before commencement of the project if the cost of the project, as estimated by the
school board, is in excess of forty thousand dollars.2.The superintendent of public instruction may not approve a project unless the school
district proposing the project:a.Demonstrates the need for the project and the educational utility of the project
or demonstrates potential utilization of the project by a future reorganized
school district; andb.Demonstrates the capacity to pay for the project under rules adopted by the
superintendent of public instruction pursuant to chapter 28-32.3.a.If the superintendent of public instruction denies the project, the school board
may appeal the superintendent's decision to the state board of public school
education. In considering the appeal, the state board shall review:(1)The need for the project;(2)The educational utility of the project;(3)The potential use of the project by a future reorganized school district;(4)The capacity of the district to pay for the project; and(5)Any other objective factors relative to the appeal.b.The decision of the state board is final.4.This section does not apply to any construction, purchase, repair, improvement,
renovation, or modernization required as part of a plan of correction approved by the
state fire marshal under section 15.1-06-09 unless the cost of the improvements
exceeds seventy-five thousand dollars.5.This section is applicable to any construction, purchase, repair, improvement,
renovation, or modernization, even if the school board pays for the project in whole
or in part with moneys received on account of the leasing of lands acquired by the
United States for flood control, navigation, and allied purposes in accordance with
33 U.S.C. 701c-3 or in accordance with moneys received under the American
Recovery and Reinvestment Act of 2009.6.For purposes of this chapter, "facility" includes a public school parking lot, public
school athletic complex, or any other improvement to real property owned by the
school district.(Effective after June 30, 2011) School construction projects - Approval.1.Notwithstanding the powers and duties of school boards provided by law, the
superintendent of public instruction shall approve the construction, purchase, repair,Page No. 1improvement, modernization, or renovation of any public school building or facility
before commencement of the project if the cost of the project, as estimated by the
school board, is in excess of twenty-five thousand dollars.2.The superintendent of public instruction may not approve a project unless the school
district proposing the project:a.Demonstrates the need for the project, the educational utility of the project, and
the ability to sustain a stable or increasing student enrollment for a period of
time at least equal to the anticipated usable life of the project or demonstrates
potential utilization of the project by a future reorganized school district; andb.Demonstrates the capacity to pay for the project under rules adopted by the
superintendent of public instruction pursuant to chapter 28-32.3.a.If the superintendent of public instruction denies the project, the school board
may appeal the superintendent's decision to the state board of public school
education. In considering the appeal, the state board shall review:(1)The need for the project;(2)The educational utility of the project;(3)The school district's ability to sustain a stable or increasing student
enrollment for a period of time at least equal to the anticipated usable life
of the project;(4)The potential use of the project by a future reorganized school district;(5)The capacity of the district to pay for the project; and(6)Any other objective factors relative to the appeal.b.The decision of the state board is final.4.This section does not apply to any construction, purchase, repair, improvement,
renovation, or modernization required as part of a plan of correction approved by the
state fire marshal under section 15.1-06-09 unless the cost of the improvements
exceeds seventy-five thousand dollars.5.For purposes of this chapter, "facility" includes a public school parking lot, public
school athletic complex, or any other improvement to real property owned by the
school district.15.1-36-02. School construction projects - Loans.1.The board of university and school lands may authorize the use of moneys in the
coal development trust fund established pursuant to section 21 of article X of the
Constitution of North Dakota and subsection 1 of section 57-62-02 to provide school
construction loans, as described in this chapter. The outstanding principal balance
of loans under this chapter may not exceed fifty million dollars. The board may
adopt policies and rules governing school construction loans.2.In order to be eligible for a loan under this section, the board of a school district
shall:a.Propose a construction project with a cost of at least one million dollars and an
expected utilization of at least thirty years;Page No. 2b.Obtain the approval of the superintendent of public instruction for the
construction project under section 15.1-36-01; andc.Submit to the superintendent of public instruction an application containing all
information deemed necessary by the superintendent, including potential
alternative sources or methods of financing the construction project.3.The superintendent of public instruction shall give priority to any district that meets
the requirements for receipt of an equity payment under section 15.1-27-11.4.If an eligible school district's imputed taxable valuation per student is less than eighty
percent of the state average imputed valuation per student, the district is entitled to
receive:a.A school construction loan equal to the lesser of eight million dollars or eighty
percent of the actual project cost;b.An interest rate discount equal to at least fifty but not more than two hundred
basis points below the prevailing tax-free bond rates; andc.A term of repayment that may extend up to twenty years.5.If an eligible school district's imputed taxable valuation per student is equal to at
least eighty percent but less than ninety percent of the state average imputed
taxable valuation per student, the district is entitled to receive:a.A school construction loan equal to the lesser of seven million dollars or
seventy percent of the actual project cost;b.An interest rate buydown equal to at least fifty but not more than two hundred
basis points below the prevailing tax-free bond rates; andc.A term of repayment that may extend up to twenty years.6.If an eligible school district's imputed taxable valuation per student is equal to at
least ninety percent of the state average imputed taxable valuation per student, the
district is entitled to receive:a.A school construction loan equal to the lesser of two million five hundred
thousand dollars or thirty percent of the actual project cost;b.An interest rate discount equal to at least fifty but not more than two hundred
basis points below the prevailing tax-free bond rates; andc.A term of repayment that may extend up to twenty years.7.The board of a school district may submit its loan application to the superintendent
of public instruction before or after receiving authorization of a bond issue in
accordance with chapter 21-03. If the vote to authorize a bond issue precedes the
application for a loan, the application must be acted upon by the superintendent
expeditiously but no later than one hundred eighty days from the date it is received
by the superintendent.8.The superintendent of public instruction shall consider each loan application in the
order it received approval under section 15.1-36-01.9.If the superintendent of public instruction approves the loan, the superintendent may
determine the loan amount, the term of the loan, and the interest rate, in accordance
with the requirements of this section.Page No. 310.The superintendent of public instruction may adopt rules governing school
construction loans.11.For purposes of this section, a construction project means the purchase, lease,
erection, or improvement of any structure or facility by a school board, provided the
acquisition or activity is within a school board's authority.15.1-36-02.1.School construction projects - Reorganized districts - Interestsubsidy.1.If under chapter 15.1-12 two or more school districts prepare a reorganization plan,
agree in that plan to pursue a construction project, and obtain the approval of the
superintendent of public instruction in accordance with this chapter, the newly
reorganized district is eligible to receive up to three hundred basis points of interest
rate buydown on the lesser of:a.Thirteen million five hundred thousand dollars; orb.A percentage of the total project cost determined by:(1)Allowing five percent for each school district that participated in the
reorganization;(2)Allowingfivepercentforeachonehundred-square-mile[259-square-kilometer] increment that is added to the square miles
[kilometers] of the geographically largest district participating in the
reorganization;(3)Allowing five percent for every ten students added to the enrollment of
the district having the greatest number of enrolled students and
participating in the reorganization; and(4)Capping the allowable percentage at ninety percent of the total project
cost.2.In addition to the requirements of subsection 1, the percentage of cost subsidy
determined under subdivision b of subsection 1 must equal at least twenty percent of
the total project cost.15.1-36-03.School construction project loans - Management by Bank of NorthDakota. If the superintendent of public instruction approves a loan application under section
15.1-36-02, the superintendent shall forward the application to the Bank of North Dakota. The
Bank shall manage and service each school construction loan issued under this chapter and
shall execute all necessary loan instruments. The Bank may charge a loan recipient a fee for
managing and servicing the loan. The Bank shall receive payments of principal and interest from
the school districts and shall remit the payments of principal and interest to the board of
university and school lands. The board shall use or deposit the payments in accordance with
section 57-62-02 and section 21 of article X of the Constitution of North Dakota.15.1-36-04. Evidences of indebtedness. The board of a school district may issue andsell evidences of indebtedness under chapter 21-03 to finance the construction or improvement
of a project approved under this chapter. The principal amount of the loan and the evidences of
indebtedness to repay the loan may not exceed the lesser of thirty percent of the school district's
taxable valuation or five million dollars. Evidences of indebtedness issued under this chapter
constitute a general obligation of the school district.15.1-36-05. Construction of public school building - Violations - Penalty.1.A person is guilty of an infraction if the person:Page No. 4a.Draws plans or specifications for the construction of a public school building or
facility in violation of this chapter;b.Superintends the construction of a public school building or facility in violation of
this chapter;c.Constructs a public school building or facility in violation of this chapter; ord.Violates any other provision of this chapter.2.A member of a school board is guilty of an infraction if the member concurred in a
violation of this chapter by the board.Page No. 5Document Outlinechapter 15.1-36 school construction