Bill No.: HB0056                  Drafter:  DRN

LSO No.:  10LSO-0046              Effective Date:  3/4/2010

Enrolled Act No.:  HEA0015

Chapter No.:       37

Prime Sponsor:     Select Committee on School Facilities

Catch Title:       Bonded indebtedness mill levy supplement.

Subject:  Bonded indebtedness mill levy supplement program for school districts with bonded indebtedness for school buildings.

Summary/Major Elements:

· Bonded indebtedness mill levy supplement program established prior to the existing school capital construction system providing state assistance for school buildings through the school facilities commission;

· Under the program, state assistance was available to those districts participating with the state in financing district building construction needs;

· Assistance provided amounts necessary to bring the participating district's tax revenues generated under a bond issue to a level equivalent to 150% of the statewide assessed valuation on a per ADM basis;

· Following the Campbell II decision in February 2001 and upon creation of the school facilities commission, the legislature discontinued the program and limited mill levy supplement payments to bond issues originating prior February 2001;

· Further limitations are imposed under this enacted law to prohibit application of the mill levy supplement program to any refunding of local bond issues initially qualifying for the program prior to February 2001, and to refunds occurring prior to April 1, 2010;

· Requires the department of education to notify school districts of this new limitation.