Section 5-308 - Reimbursement of State for debt service.
§ 5-308. Reimbursement of State for debt service.
(a) Schools for which reimbursement from county not required.- Notwithstanding the provisions of Title 10, Subtitle 3 of the State Finance and Procurement Article, this State may not require reimbursement of debt service from a county for a school that:
(1) Was initially constructed on or before February 1, 1971;
(2) Is no longer used for school purposes;
(3) Has had title transferred to a county government; and
(4) Is being used for local governmental purposes other than public education; provided, however, that if a former school building is sold by a county government the State shall be reimbursed for outstanding debt service, and if more than 10 percent of usable space within a former school is rented for an amount exceeding the cost of operating and maintaining such space, such rental profit shall be used toward retiring outstanding bonded indebtedness.
(b) Schools for which reimbursement from county is required.- This State shall require reimbursement of outstanding debt service from a county for a school that:
(1) Was constructed under this subtitle;
(2) Was initially constructed or substantially altered by addition(s), alterations, or renovations and the cost of the construction at the time of execution exceeded $100,000 and the work was accomplished after February 1, 1971;
(3) Is no longer used for school purposes;
(4) Has had title transferred to a county government;
(5) Is being used for local governmental purposes by the State or a county or by any instrumentality of the State or a county other than public education; and
(6) Has outstanding debt which exceeds $5,000.
[1980, ch. 870; 1981, ch. 261; 1985, ch. 717, § 1; 1996, ch. 10, § 16.]