HCS/HB 1265 - This act would place forfeiture proceeds in the School Building Revolving Fund (SBRF), provided that no more than a total of four hundred and forty million dollars shall be transferred to the fund. The SBRF is amended to provide funds to school districts for lease purchases. Lease purchase property shall remain in the ownership of the state until the lease purchase is completed, which shall be completed in no longer than ten years.

If the fund balance in the SBRF is insufficient to fund all eligible projects, projects will be ranked, and the highest ranking projects shall be funded first. Funding shall be provided to all districts in a category before funding is provided to any district in the next lower priority category. Funding shall be provided to all eligible districts in the following priority: 1) districts with uninsured costs due to fire or natural disaster, 2) districts with growth in student attendance from the fifth to third preceding school year of at least twelve percent, bonded debt of at least 90% of the district's bonding capacity and assessed valuation per pupil below the state average and 3) districts with bonded debt of at least 90% of the district's bonding capacity and assessed valuation per pupil below the state average. Repayment terms and penalties are included.

This act is similar to SB 899 from 1998.
OTTO FAJEN