Section 206 – School Building Revolving Account — Access to the account.

• (1)
  • (a) There is created within the Uniform School Fund a restricted account known as the “School Building Revolving Account” to provide short-term help to school districts to meet district needs for school building construction and renovation.
  • (b) The state superintendent shall administer the School Building Revolving Account in accordance with Chapter 3, State Funding — Capital Outlay Programs, and rules adopted by the state board.

• (2) The state board may not allocate funds from the School Building Revolving Account that exceed a school district’s bonding limit minus its outstanding bonds.

• (3) In order to receive money from the School Building Revolving Account, a school district shall:
  • (a) levy a combined capital levy rate of at least .0024;
  • (b) contract with the state superintendent to repay the money, with interest at a rate established by the state superintendent, within five years of receipt, using future state capital outlay allocations, local revenues, or both;
  • (c) levy sufficient ad valorem taxes under Section 11-14-310 to guarantee annual loan repayments, unless the state superintendent alters the payment schedule to improve a hardship situation; and
  • (d) meet any other condition established by the state board pertinent to the loan.

• (4)
  • (a) The state superintendent shall establish a committee, including representatives from 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 to the 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.

Amended by Chapter 186, 2019 General Session