166.300. Definitions--school building revolving fund created--lease purchases for projects, plan--eligibility for a lease purchase--ranking of projects--plan waived, when--repayment, interest--failure
Definitions--school building revolving fund created--lease purchasesfor projects, plan--eligibility for a lease purchase--ranking ofprojects--plan waived, when--repayment, interest--failure to makeannual payments, state to take possession of buildings, procedure.
166.300. 1. As used in this section, the following words and phrasesshall mean:
(1) "Capital improvement projects", expenditures for lands orexisting buildings, improvements of grounds, construction of buildings,additions to buildings, remodeling of buildings and initial equipmentpurchases;
(2) "School facility", a structure dedicated primarily to housingteachers and students in the instructional process, but shall not includebuildings dedicated primarily to administrative and support functionswithin the school.
2. There is hereby created a revolving fund to be known as the"School Building Revolving Fund". All forfeitures of assets transferredpursuant to section 166.131, all gifts and bequests to such fund, and suchmoneys as may be appropriated to the fund shall be deposited into theschool building revolving fund; except that no more than four hundred fortymillion dollars, in the aggregate, shall be transferred to the fund. Aftera fund balance has been established by prior years' deposits and interest,school districts may submit applications for lease purchases from therevolving fund for specific projects consistent with rules and regulationsof the state board of education and subsection 3 of this section, exceptthat no school district may be permitted to enter into a lease purchasefrom the school building revolving fund without first submitting along-range capital improvements plan.
3. To be eligible for a lease purchase authorized by this section:
(1) A school district shall meet the minimum criteria for state aidand for increases in state aid established pursuant to section 163.021,RSMo;
(2) A school district shall provide a program which is accredited bythe state board of education for grades kindergarten through twelve or forgrades kindergarten through eight; and
(3) A school district shall have an equalized, assessed valuation pereligible pupil for the preceding year which is less than the statewideaverage equalized, assessed valuation per eligible pupil for the precedingyear; and
(4) A school district shall have a bonded indebtedness which is noless than ninety percent of the constitutional limitation on indebtednesspursuant to section 26(b) of article VI of the Constitution of Missouri.
4. Lease purchase applications shall be funded, as funds allow, firstfor all applications pursuant to subdivision (1) of this subsection andthen for applications pursuant to subdivision (2) of this subsection andthen for applications pursuant to subdivision (3) of this subsection, andfor funding of applications pursuant to a particular subdivision,applications shall be funded in the order that the applications arereceived by the department. If two or more applications are received onthe same day, the district with the lowest appraised valuation per pupilshall be given priority. Ranking of the applications for offering of leasepurchases shall be done in the following order:
(1) Districts with capital replacement costs in excess of insuranceproceeds due to facility destruction caused by fire or natural disastershall be ranked on the basis of percentage of bonding capacity;
(2) Districts with a cumulative percentage growth in fall membershipfor the third through the fifth preceding years in excess of twelve percentand which have a bonded indebtedness which is no less than ninety percentof the constitutional limitation on indebtedness pursuant to section 26(b)of article VI of the Constitution of Missouri; and
(3) Districts with an equalized assessed valuation per pupil which isless than the statewide average equalized assessed valuation per pupil andwhich have a bonded indebtedness which is no less than ninety percent ofthe constitutional limitation on indebtedness pursuant to section 26(b) ofarticle VI of the Constitution of Missouri.
5. When building replacement is caused by fire or natural disaster,the requirement for a school district to have a long-range capitalimprovements plan may be waived by the state board of education.
6. Each school district participating in a lease purchase from theschool building revolving fund shall repay such lease purchase in no morethan ten annual payments made on or before June thirtieth of each year.The first such payment shall be due and payable on June thirtieth of thefirst full fiscal year following receipt of lease purchase proceeds. Leasepurchase repayments shall be immediately deposited to the school buildingrevolving fund by the department. Interest charged to the school districtshall not exceed three percent.
7. Any school district which fails to obligate the full amount of aloan from the school building revolving fund for the allowable leasepurchase must return the unobligated amount plus interest earned to thedepartment no later than June thirtieth of the second full fiscal yearafter receipt of loan proceeds.
8. If a school district fails to make an annual payment to the schoolbuilding revolving fund after notice of nonpayment by the department,members of the board of education and the school district's superintendentshall have violated section 162.091, RSMo, and the attorney general of thestate of Missouri shall be notified by the state board of education tobegin prosecution procedures.
9. All property purchased pursuant to a lease purchase from theschool building revolving fund shall remain the property of the state untilsuch time as the lease purchase has been fully repaid pursuant to thissection. If a school district does not make an annual payment to theschool building revolving fund after notice of nonpayment by thedepartment, the state board of education may, if the delinquency exceedsone hundred eighty days, take possession of the property. As a part of thelease purchase agreement, the school district shall agree to assume allcosts, obligations and liabilities for or arising out of establishment,operation and maintenance of the lease purchase property. Other provisionsof law to the contrary notwithstanding, neither the state nor any stateagency shall have any obligation for such costs, obligations or liabilitiesunless and until the state board of education takes possession of theproperty pursuant to this subsection upon a school district's failure tomake annual payments as required in the lease purchase agreement.
10. Any unobligated cash balance in the school building revolvingfund as of the effective date of this act*, shall be transferred to aid thepublic schools of this state pursuant to section 163.031, RSMo. Any andall deposits made to the school building revolving fund after August 28,2003, shall be immediately transferred to the state school moneys fund,pursuant to section 166.051.
(L. 1993 S.B. 380 § 12, A.L. 1995 S.B. 301, A.L. 1998 H.B. 1265, A.L. 2003 S.B. 675)*This act (S.B. 675, 2003) contained an effective date of 1-1-04 for § 339.105; remainder of act became effective 8-28-03.
(1996) Contingent referendum provision was found to be an unconstitutional delegation of legislative authority thereby making section 143.107, which contained a contingent expiration date for this section, void. Akin v. Director of Revenue, 934 S.W.2d 295 (Mo.banc).