SENATE BILL REPORT

SB 5851

BYSenators Smith, DeJarnatt and Bailey

Establishing the emergency school building fund.

Senate Committee on Education

Senate Hearing Date(s):February 27, 1989

Majority Report:  That Substitute Senate Bill No. 5851 be substituted therefor, and the substitute bill do pass and be referred to Committee on Ways & Means.

      Signed by Senators Bailey, Chairman; Lee, Vice Chairman; Anderson, Bender, Benitz, Craswell, Fleming, Gaspard, Metcalf, Murray, Rinehart.

Senate Staff:Larry Davis (786-7422)

                  February 28, 1989

Senate Committee on Ways & Means

Senate Hearing Date(s):March 3, 1989; March 6, 1989

Majority Report:  That Second Substitute Senate Bill No. 5851 be substituted therefor, and the second substitute bill do pass.

      Signed by Senators McDonald, Chairman; Craswell, Vice Chairman; Bailey, Bluechel, Cantu, Hayner, Johnson, Lee, Matson, Newhouse, Saling, Smith.

Senate Staff:Ken Kanikeberg (786-7715)

                  March 7, 1989

AS REPORTED BY COMMITTEE ON WAYS & MEANS, MARCH 6, 1989

BACKGROUND:

Under current law the Superintendent of Public Instruction has limited ability to assist school districts in acquiring portable school buildings in response to emergency housing situations.

SUMMARY:

The emergency school building fund is established in the custody of the State Treasurer.  Funds are disbursed on the authority of the Superintendent of Public Instruction for school housing emergencies.

A school housing emergency is defined as the occurrence of an unexpected event which makes all or part of a school building unoccupiable and the occurrence requires the use of portable buildings to house displaced students and staff.

The Superintendent may use monies in the emergency school building fund to make interest-free, reimbursable loans to districts to acquire, transport, and set up portable school buildings.  Districts must repay the loan within five years.

EFFECT OF PROPOSED SUBSTITUTE:

School districts are authorized to contribute gifts or grants to the emergency school building fund.

The Superintendent of Public Instruction is authorized to withhold a district's basic education allocation if the district is delinquent in repaying a school housing emergency loan.

The State Board is authorized to allot funds from the emergency school building fund for loans approved by the Superintendent of Public Instruction.

An emergency clause is added and the act shall take effect immediately.

EFFECT OF PROPOSED SECOND SUBSTITUTE:

Loans from the school housing emergency fund shall not exceed $1 million per biennium.  To be eligible for loans:  (a) the school housing emergency must render all or a majority of the building unusable; (b) the school district must not be eligible for state school construction assistance; and (c) the projected unrestricted ending fund balance of the district must not exceed 2 percent of the district's budget.  Loans must be repaid with interest at the prime rate in effect at the time the loan was made.  A school board, by resolution, may levy a household tax to meet a school housing emergency.

If specific funding is not provided in the omnibus budget act for purposes of this act, portions of the bill shall be null and void.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested February 23, 1989

Senate Committee - Testified: EDUCATION:  FOR:  Senator Linda Smith, sponsor; Darlene Keatley, Patty Keatley, Diane Watenpaugh, Don Powell, parents, Castle Rock; Richard Galt, Superintendent, Castle Rock School District

Senate Committee - Testified: WAYS & MEANS:  No one