HB1402 (2022) Detail

Relative to inclusion of chartered public schools in school district bond issuance votes.


HB 1402-LOCAL - AS INTRODUCED

 

 

2022 SESSION

22-2701

10/05

 

HOUSE BILL 1402-LOCAL

 

AN ACT relative to inclusion of chartered public schools in school district bond issuance votes.

 

SPONSORS: Rep. Mooney, Hills. 21; Rep. Hobson, Rock. 35; Rep. Healey, Hills. 21; Rep. Notter, Hills. 21; Sen. Ward, Dist 8; Sen. Carson, Dist 14

 

COMMITTEE: Education

 

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ANALYSIS

 

This bill establishes a procedure for a chartered public school to elect to include its planned land, construction, or renovation costs in the local school district's vote to authorize bonded indebtedness.

 

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

22-2701

10/05

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty Two

 

AN ACT relative to inclusion of chartered public schools in school district bond issuance votes.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  New Section; Municipal Finance Act; School District Bonds; Chartered Public Schools Election.  Amend RSA 33 by inserting after section 20 the following new section:

33:21  Chartered Public Schools; Bond Election Participation.

I. It is the intent of section to respect the principle of school district local control and to encourage school districts and chartered public schools to work together to ensure that the capital construction needs of chartered public schools can be met. Accordingly, nothing in this section shall be construed to limit in any way the existing ability of any school district to assist a chartered public school in financing its capital construction needs in any legal manner mutually agreed upon by the school district and the chartered public school.

II.(a) Each school district that is considering submitting any question of authorizing bonded indebtedness under this chapter shall invite each chartered public school residing within the district to participate in discussions regarding the possible submission of such a question at the earliest possible time but no later than June 1 preceding the vote, and each school district is encouraged to voluntarily include funding for the capital construction needs of chartered public schools in the district's questions of authorizing bonded indebtedness without requiring a chartered public school to comply with the capital construction plan submission process set forth in subparagraph (b).

(b)  A chartered public school that has capital construction needs may seek to obtain moneys to fund such capital construction needs by requesting that the local school board include the chartered public school's capital construction needs as part of a ballot question for approval of bonded indebtedness to be submitted by the district to the voters of the district.

(c) A chartered public school that seeks to have its capital construction needs included as part of a ballot question to be submitted by the board of education to the voters of the district shall submit a capital construction plan to the board of education. The plan shall include:

(1) A statement of reasons why the capital construction to be financed by bonded indebtedness is necessary;

(2)  A description of the capital construction to be financed by bond proceeds;

(3) A description of the architectural, functional, and construction standards that meet applicable state building code requirements and are to be applied to each facility that is the subject of the capital construction project;

(4) An estimate of the total cost of completing the capital construction to be financed by bonded indebtedness, if any moneys other than proceeds of bonded indebtedness and interest earned on such proceeds are to be used to finance the capital construction, a breakdown of the moneys that will be used to finance the capital construction;

(5) An estimate of the amount of time needed to complete the capital construction;

(6) A statement addressing whether construction and renovation, payment of overrun costs, and other capital construction project issues are to be managed by the chartered public school or the district, with costs for management to be negotiated by the chartered public school and the district;

(7) A statement of reasons why revenue sources other than bonded indebtedness are inadequate to fully finance the capital construction; ?and

(8) A statement of the chartered public school's preferred means of obtaining moneys.

III.  The local school board of a school district and a chartered public school may agree to an alternative financial plan that addresses a chartered public school's facilities needs, including retiring financial obligations previously issued for the benefit of the chartered public school.

IV.(a)  The local school board of a school district may require a chartered public school to certify that school construction to be financed with bond proceeds in accordance with this section will remediate an identified shortcoming in the chartered public school's facilities and that any construction will conform to any applicable construction guidelines.

(b)  The local school board of a school district and a chartered public school may agree to reserve or escrow funds for the benefit of the chartered public school.

V.(a)  The local school board shall notify the chartered public school in writing whether the school district has accepted the chartered public school's capital construction needs for inclusion in the ballot question at the upcoming election no later than 60 days prior to the date by which the school district is required to authorize the bond issuance vote.

(b) If the local school board has accepted the chartered public school capital construction needs for inclusion in the ballot question at the upcoming election, the local school board shall include the chartered public school's capital construction in the same ballot question being submitted by the district for approval of bonded indebtedness.  

(c) If the local school board has not accepted the chartered public school's capital construction needs for inclusion in the ballot question at the upcoming election, the local school board shall provide the chartered public school with a written statement specifying the reasons for excluding the needs, and the chartered public school shall have an opportunity to address any issues raised by the board.

VI. When a school district includes a chartered public school's capital construction plan in a district ballot question seeking approval of bonded indebtedness:

(a) The local school board and the chartered public school shall agree to the process by which the bond proceeds and investment and interest earnings on such proceeds shall be distributed to the chartered public school prior to submitting the ballot question to the voters of the school district;

(b) The investment and interest earnings on bond proceeds shall be distributed on a pro rata basis to the participating chartered public school after management fees have been collected; and

(c) The costs of submitting the ballot question shall be borne by both the district and the chartered public school in proportion to their respective portions of the total bond proceeds to be received unless the board and the chartered public school agree to a different cost-sharing arrangement.

VII.  Notwithstanding any other provision of this section, prior to such issuance of district bonds issued for the purpose of financing chartered public school capital construction needs, the chartered public school and district shall enter into a contract specifying that, if the chartered public school’s charter is revoked or not renewed, the chartered public school becomes insolvent and can no longer operate as a chartered public school, or the chartered public school otherwise ceases to operate, the amount of capital proceeds from district bonds provided to the charter school shall be repaid to the district at a rate of 5 percent per annum over 10 years fully amortized, with such repayment proceeds being used by the district for any lawful purpose of the general fund.  Such repayment may be evidenced by a note to the district from the fiscal agent of the surviving entity, or agency responsible for asset liquidation.

2  Chartered Public Schools; Authority; Bonds.  Amend RSA 194-B:5, III(h) to read as follows:

(h)  To incur long-term debt for the purpose of purchasing buildings or land, or for new construction or renovations to existing buildings.  The state shall not be liable for any debt or other financial obligation incurred under this subparagraph.  Chartered public schools may elect to fund capital construction through revenues from bond issues pursuant to RSA 33:21.

3  Effective Date.  This act shall take effect 60 days after its passage.

Links


Date Body Type
Feb. 3, 2022 House Hearing
Feb. 3, 2022 House Hearing
House Floor Vote
March 7, 2022 House Exec Session

Bill Text Revisions

HB1402 Revision: 34058 Date: Dec. 1, 2021, 1:04 p.m.

Docket


March 9, 2022: Committee Report: Inexpedient to Legislate (Vote 18-0; CC)


March 15, 2022: Inexpedient to Legislate: MA VV 03/15/2022 HJ 6


March 9, 2022: Committee Report: Inexpedient to Legislate (Vote 18-0; CC)


March 23, 2022: Executive Session: 03/07/2022 10:00 am LOB 210-211


Feb. 3, 2022: Public Hearing: 02/03/2022 9:45 a.m. LOB205-207


Jan. 19, 2022: Public Hearing: 02/03/2022 09:45 am LOB 205-207


Dec. 1, 2021: Introduced 01/05/2022 and referred to Education