SECTION 1. Article 43.7 of title 22, Colorado Revised Statutes, is REPEALED AND REENACTED, WITH AMENDMENTS, to read:

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1 NOTE: This bill has been prepared for the signature of the appropriate legislative officers and the Governor. To determine whether the Governor has signed the bill or taken other action on it, please consult the legislative status sheet, the legislative history, or the Session Laws. HOUSE BILL BY REPRESENTATIVE(S) Romanoff, Benefield, Borodkin, Carroll M., Carroll T., Casso, Curry, Ferrandino, Fischer, Frangas, Gagliardi, Gallegos, Gardner B., Gardner C., Garza-Hicks, Green, Hodge, Jahn, Kefalas, Kerr A., Kerr J., King, Labuda, Lambert, Liston, Looper, Madden, Marostica, Marshall, Massey, May M., McFadyen, McGihon, McKinley, McNulty, Merrifield, Middleton, Mitchell V., Peniston, Primavera, Rice, Riesberg, Roberts, Rose, Scanlan, Solano, Sonnenberg, Stafford, Stephens, Summers, Todd, Vaad, White, Witwer, Levy, and Swalm; also SENATOR(S) Groff and Schwartz, Bacon, Boyd, Gibbs, Gordon, Isgar, Keller, Mitchell S., Morse, Penry, Romer, Shaffer, Tapia, Veiga, Ward, and Windels. CONCERNING STATE FINANCIAL ASSISTANCE TO FINANCE PUBLIC SCHOOL FACILITY CAPITAL CONSTRUCTION, AND MAKING AN APPROPRIATION THEREFOR. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. Article 43.7 of title 22, Colorado Revised Statutes, is REPEALED AND REENACTED, WITH AMENDMENTS, to read: Short title. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS THE "BUILDING EXCELLENT SCHOOLS TODAY ACT". Capital letters indicate new material added to existing statutes; dashes through words indicate deletions from existing statutes and such material not part of act.

2 Legislative findings and declarations. (1) THE GENERAL ASSEMBLY HEREBY FINDS AND DECLARES THAT: (a) COLORADO SCHOOL DISTRICTS, BOARDS OF COOPERATIVE SERVICES, AND CHARTER SCHOOLS HAVE DIFFERING FINANCIAL ABILITIES TO MEET STUDENTS' FUNDAMENTAL EDUCATIONAL NEEDS, INCLUDING THE NEED FOR NEW PUBLIC SCHOOLS AND RENOVATIONS OR FOR CONTROLLED MAINTENANCE AT EXISTING PUBLIC SCHOOLS SO THAT UNSAFE, DETERIORATING, OR OVERCROWDED FACILITIES DO NOT IMPAIR STUDENTS' ABILITY TO LEARN. (b) THE ESTABLISHMENT OF A PROGRAM TO PROVIDE FINANCIAL ASSISTANCE TO SCHOOL DISTRICTS, BOARDS OF COOPERATIVE SERVICES, AND CHARTER SCHOOLS THROUGHOUT THE STATE THAT HAVE DIFFICULTY FINANCING NEW CAPITAL CONSTRUCTION PROJECTS AND RENOVATING AND MAINTAINING EXISTING FACILITIES WILL HELP SUCH DISTRICTS, BOARDS OF COOPERATIVE SERVICES, AND CHARTER SCHOOLS TO MEET STUDENTS' FUNDAMENTAL EDUCATIONAL NEEDS. (2) THE GENERAL ASSEMBLY FURTHER FINDS AND DECLARES THAT: (a) RENTAL INCOME, ROYALTIES, INTEREST, AND OTHER INCOME OTHER THAN LAND SALE PROCEEDS DERIVED FROM STATE SCHOOL LANDS MAY BE USED TO SUPPORT THE PUBLIC SCHOOLS OF THE STATE. (b) IT IS NECESSARY AND APPROPRIATE FOR THE STATE TO BUILD EXCELLENT SCHOOLS TODAY BY ASSISTING SCHOOL DISTRICTS, BOARDS OF COOPERATIVE SERVICES, AND CHARTER SCHOOLS IN COMPLETING NEEDED PUBLIC SCHOOL FACILITY CAPITAL CONSTRUCTION PROJECTS MORE QUICKLY BY: (I) ENTERING INTO LEASE-PURCHASE AGREEMENTS FOR THE PURPOSE OF FINANCING SUCH PROJECTS; AND (II) SUBJECT TO THE ANNUAL APPROPRIATION OF SUCH MONEYS BY THE GENERAL ASSEMBLY, USING A PORTION OF THE RENTAL INCOME, ROYALTIES, INTEREST, AND OTHER INCOME, OTHER THAN LAND SALE PROCEEDS, DERIVED FROM STATE SCHOOL LANDS, AS WELL AS CERTAIN OTHER AVAILABLE STATE MONEYS AND MATCHING MONEYS PROVIDED BY PAGE 2-HOUSE BILL

3 SCHOOL DISTRICTS, BOARDS OF COOPERATIVE SERVICES, AND CHARTER SCHOOLS, TO MAKE LEASE PAYMENTS PAYABLE UNDER THE TERMS OF THE LEASE-PURCHASE AGREEMENTS. (c) IT IS ALSO NECESSARY AND APPROPRIATE FOR THE STATE TO USE A PORTION OF SUCH RENTAL INCOME, ROYALTIES, INTEREST, AND OTHER INCOME AND AVAILABLE MONEYS TO CONTINUE TO PROVIDE FINANCIAL ASSISTANCE TO SCHOOL DISTRICTS, BOARDS OF COOPERATIVE SERVICES, AND CHARTER SCHOOLS IN THE FORM OF CASH FUNDING FOR SCHOOL RENOVATION AND CONTROLLED MAINTENANCE PROJECTS. (d) IN ACCORDANCE WITH THE DECISION OF THE COLORADO COURT OF APPEALS IN THE CASE DENOMINATED COLORADO CRIMINAL JUSTICE REFORM COALITION V. ORTIZ, CASE NO. 04 CA 0879 (APRIL 7, 2005), THE LEASE-PURCHASE AGREEMENTS TO BE ENTERED INTO BY THE STATE PURSUANT TO THIS ARTICLE DO NOT CONSTITUTE A MULTIPLE-FISCAL YEAR DIRECT OR INDIRECT DISTRICT DEBT OR OTHER FINANCIAL OBLIGATION WHATSOEVER FOR PURPOSES OF SECTION 20 (4) (a) OF ARTICLE X OF THE STATE CONSTITUTION. (e) THE PROVISION OF FINANCIAL ASSISTANCE FOR PUBLIC SCHOOL FACILITY CAPITAL CONSTRUCTION PURSUANT TO THIS ARTICLE MEETS THE REQUIREMENTS OF SECTION 3 OF ARTICLE IX OF THE STATE CONSTITUTION AND SHALL BE APPLIED FIRST TO SATISFY THE LEGAL OBLIGATIONS OF THE STATE UNDER THE SETTLEMENT REACHED IN THE CASE DENOMINATED GIARDINO V. COLORADO STATE BOARD OF EDUCATION, ET AL., CASE NO. 98 CV 246, IN THE DISTRICT COURT FOR THE CITY AND COUNTY OF DENVER Definitions. AS USED IN THIS ARTICLE, UNLESS THE CONTEXT OTHERWISE REQUIRES: (1) "APPLICANT" MEANS ANY ENTITY THAT MAY DIRECTLY OR INDIRECTLY SUBMIT AN APPLICATION FOR FINANCIAL ASSISTANCE TO THE BOARD IF THE ENTITY SUBMITS SUCH AN APPLICATION, INCLUDING: (a) A SCHOOL DISTRICT; (b) A BOARD OF COOPERATIVE SERVICES; (c) A CHARTER SCHOOL; AND PAGE 3-HOUSE BILL

4 (d) THE COLORADO SCHOOL FOR THE DEAF AND BLIND CREATED AND EXISTING PURSUANT TO SECTION (1) (a). (2) "ASSISTANCE FUND" MEANS THE PUBLIC SCHOOL CAPITAL CONSTRUCTION ASSISTANCE FUND CREATED IN SECTION (1). (3) "AUTHORIZER" MEANS THE SCHOOL DISTRICT THAT AUTHORIZED THE CHARTER CONTRACT OF A CHARTER SCHOOL OR, IN THE CASE OF AN INSTITUTE CHARTER SCHOOL, AS DEFINED IN SECTION (6), THE STATE CHARTER SCHOOL INSTITUTE CREATED AND EXISTING PURSUANT TO SECTION (1) (a). (4) "BOARD" MEANS THE PUBLIC SCHOOL CAPITAL CONSTRUCTION ASSISTANCE BOARD CREATED IN SECTION (1). (5) "BOARD OF COOPERATIVE SERVICES" MEANS A BOARD OF COOPERATIVE SERVICES CREATED AND EXISTING PURSUANT TO SECTION THAT IS ELIGIBLE TO RECEIVE STATE MONEYS PURSUANT TO SECTION (6) "CAPITAL CONSTRUCTION" SHALL HAVE THE SAME MEANING AS SET FORTH IN SECTION (1), C.R.S. (7) "CHARTER SCHOOL" MEANS A CHARTER SCHOOL AS DESCRIBED IN SECTION (1) (f.6) (I) (A) OR (1) (f.6) (I) (B) THAT HAS BEEN CHARTERED FOR AT LEAST FIVE YEARS ON THE DATE ITS AUTHORIZER FORWARDS AN APPLICATION FOR FINANCIAL ASSISTANCE TO THE BOARD ON THE CHARTER SCHOOL'S BEHALF. (8) "DEPARTMENT" MEANS THE DEPARTMENT OF EDUCATION CREATED AND EXISTING PURSUANT TO SECTION , C.R.S. (9) "DIVISION" MEANS THE DIVISION OF PUBLIC SCHOOL CAPITAL CONSTRUCTION ASSISTANCE CREATED IN SECTION (10) "FINANCIAL ASSISTANCE" MEANS MATCHING GRANTS MADE BY THE BOARD FROM THE ASSISTANCE FUND TO APPLICANTS OR ANY OTHER EXPENDITURES MADE FROM THE ASSISTANCE FUND FOR THE PURPOSE OF FINANCING PUBLIC SCHOOL FACILITY CAPITAL CONSTRUCTION AS AUTHORIZED BY THIS ARTICLE. PAGE 4-HOUSE BILL

5 (11) "MATCHING MONEYS" MEANS MONEYS REQUIRED TO BE PAID TO THE STATE OR USED DIRECTLY TO PAY A PORTION OF THE COSTS OF A PUBLIC SCHOOL FACILITY CAPITAL CONSTRUCTION PROJECT BY AN APPLICANT AS A CONDITION OF AN AWARD OF FINANCIAL ASSISTANCE TO THE APPLICANT PURSUANT TO SECTION (9). (12) "PUBLIC SCHOOL FACILITY" MEANS A BUILDING OR PORTION OF A BUILDING USED FOR EDUCATIONAL PURPOSES BY A SCHOOL DISTRICT, A BOARD OF COOPERATIVE SERVICES, THE COLORADO SCHOOL FOR THE DEAF AND BLIND CREATED AND EXISTING PURSUANT TO SECTION (1) (a), OR A CHARTER SCHOOL, INCLUDING BUT NOT LIMITED TO SCHOOL SITES, CLASSROOMS, LIBRARIES AND MEDIA CENTERS, CAFETERIAS AND KITCHENS, AUDITORIUMS, MULTIPURPOSE ROOMS, AND OTHER MULTI-USE SPACES; EXCEPT THAT "PUBLIC SCHOOL FACILITY" DOES NOT INCLUDE A LEARNING CENTER, AS DEFINED IN SECTION (4), THAT IS NOT USED FOR ANY OTHER PUBLIC SCHOOL PURPOSE AND IS NOT PART OF A BUILDING OTHERWISE OWNED, OR LEASED IN ITS ENTIRETY, BY A SCHOOL DISTRICT, A BOARD OF COOPERATIVE SERVICES, A CHARTER SCHOOL, OR THE COLORADO SCHOOL FOR THE DEAF AND BLIND FOR EDUCATIONAL PURPOSES. (13) "PUBLIC SCHOOL LANDS INCOME" MEANS ALL INCOME RECEIVED BY THE STATE FROM: (a) THE SALE OF TIMBER ON PUBLIC SCHOOL LANDS, RENTAL PAYMENTS FOR THE USE AND OCCUPATION OF PUBLIC SCHOOL LANDS, AND RENTALS OR LEASE PAYMENTS FOR SAND, GRAVEL, CLAY, STONE, COAL, OIL, GAS, GEOTHERMAL RESOURCES, GOLD, SILVER, OR OTHER MINERALS ON PUBLIC SCHOOL LANDS; (b) ROYALTIES AND OTHER PAYMENTS FOR THE EXTRACTION OF ANY NATURAL RESOURCE ON PUBLIC SCHOOL LANDS; AND (c) INTEREST OR INCOME EARNED ON THE DEPOSIT AND INVESTMENT OF MONEYS IN THE PUBLIC SCHOOL FUND. (14) "SCHOOL DISTRICT" MEANS A SCHOOL DISTRICT, OTHER THAN A JUNIOR OR COMMUNITY COLLEGE DISTRICT, ORGANIZED AND EXISTING PURSUANT TO LAW. (15) "STATE BOARD" MEANS THE STATE BOARD OF EDUCATION PAGE 5-HOUSE BILL

6 CREATED AND EXISTING PURSUANT TO SECTION 1 OF ARTICLE IX OF THE STATE CONSTITUTION Public school capital construction assistance fund - creation - crediting of moneys to fund - use of fund - emergency reserve - creation. (1) THE PUBLIC SCHOOL CAPITAL CONSTRUCTION ASSISTANCE FUND IS HEREBY CREATED IN THE STATE TREASURY. THE PRINCIPAL OF THE ASSISTANCE FUND SHALL CONSIST OF ALL MONEYS TRANSFERRED OR CREDITED TO THE ASSISTANCE FUND PURSUANT TO SUBSECTION (2) OF THIS SECTION. ALL INTEREST AND INCOME EARNED ON THE DEPOSIT AND INVESTMENT OF MONEYS IN THE ASSISTANCE FUND SHALL BE CREDITED TO THE ASSISTANCE FUND AND SHALL NOT BE TRANSFERRED TO THE GENERAL FUND OR ANY OTHER FUND AT THE END OF ANY FISCAL YEAR. (2) (a) ON JULY 1, 2008, THE FOLLOWING MONEYS SHALL BE TRANSFERRED TO THE ASSISTANCE FUND: (I) ALL MONEYS REMAINING IN THE SCHOOL CONSTRUCTION AND RENOVATION FUND, AS SAID FUND EXISTED PRIOR TO JULY 1, 2008; (II) ALL MONEYS REMAINING IN THE SCHOOL CAPITAL CONSTRUCTION EXPENDITURES RESERVE AND THE SCHOOL CAPITAL CONSTRUCTION EXPENDITURES RESERVE FUND AS SAID RESERVE AND RESERVE FUND EXISTED PRIOR TO JULY 1, 2008; AND (III) ALL MONEYS REMAINING IN THE LOTTERY PROCEEDS CONTINGENCY RESERVE FUND AS SAID FUND EXISTED PRIOR TO JULY 1, (b) FOR EACH FISCAL YEAR COMMENCING ON OR AFTER JULY 1, 2008, THE FOLLOWING MONEYS SHALL BE CREDITED TO THE ASSISTANCE FUND: (I) THE GREATER OF THIRTY-FIVE PERCENT OF THE GROSS AMOUNT OF PUBLIC SCHOOL LANDS INCOME RECEIVED DURING THE FISCAL YEAR OR AN AMOUNT OF SUCH INCOME EQUAL TO THE DIFFERENCE BETWEEN THE TOTAL AMOUNT OF LEASE PAYMENTS TO BE MADE BY THE STATE UNDER THE TERMS OF LEASE-PURCHASE AGREEMENTS ENTERED INTO PURSUANT TO SECTION (2) AND THE TOTAL AMOUNT OF MATCHING MONEYS TO BE PAID TO THE STATE AS LEASE PAYMENTS UNDER THE TERMS OF SUBLEASE-PURCHASE AGREEMENTS ENTERED INTO PURSUANT TO SECTION (2). THE MONEYS REQUIRED TO BE CREDITED TO THE PAGE 6-HOUSE BILL

7 ASSISTANCE FUND PURSUANT TO THIS SUBPARAGRAPH (I) MAY BE TAKEN FROM ANY SINGLE SOURCE OR COMBINATION OF SOURCES OF PUBLIC SCHOOL LANDS INCOME. (II) THE NET PROCEEDS FROM THE SALE OF CERTIFICATES OF PARTICIPATION PAYABLE TO THE STATE UNDER THE TERMS OF ANY LEASE-PURCHASE AGREEMENT ENTERED INTO PURSUANT TO SECTION (2), AS CONSIDERATION FROM THE LESSOR THAT ISSUED THE CERTIFICATES OF PARTICIPATION; (III) ALL MONEYS THAT WOULD OTHERWISE BE TRANSFERRED TO THE GENERAL FUND PURSUANT TO SECTION 3 (1) (b) (III) OF ARTICLE XXVII OF THE STATE CONSTITUTION. THE MONEYS CREDITED TO THE ASSISTANCE FUND PURSUANT TO THIS SUBPARAGRAPH (III) AND ANY INCOME AND INTEREST DERIVED FROM THE DEPOSIT AND INVESTMENT OF SUCH MONEYS SHALL BE EXEMPT FROM ANY RESTRICTION ON SPENDING, REVENUE, OR APPROPRIATIONS, INCLUDING, WITHOUT LIMITATION, THE RESTRICTIONS OF SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION. (IV) MATCHING MONEYS PAID TO THE STATE FOR USE BY THE STATE IN MAKING SCHEDULED PAYMENTS PAYABLE BY THE STATE UNDER THE TERMS OF LEASE-PURCHASE AGREEMENTS ENTERED INTO PURSUANT TO SECTION (2). (3) SUBJECT TO ANNUAL APPROPRIATION, THE DEPARTMENT MAY EXPEND MONEYS IN THE ASSISTANCE FUND TO PAY THE DIRECT AND INDIRECT ADMINISTRATIVE COSTS, INCLUDING BUT NOT LIMITED TO THE COSTS OF CONDUCTING OR CONTRACTING FOR THE FINANCIAL ASSISTANCE PRIORITY ASSESSMENT REQUIRED BY SECTION (1), INCURRED BY THE DIVISION AND THE BOARD IN EXERCISING THEIR POWERS AND DUTIES PURSUANT TO THIS ARTICLE. ANY MONEYS IN THE ASSISTANCE FUND NOT APPROPRIATED FOR A FISCAL YEAR TO THE DEPARTMENT FOR ADMINISTRATIVE COSTS BEFORE THE FISCAL YEAR COMMENCES ARE HEREBY CONTINUOUSLY APPROPRIATED TO THE BOARD FOR THE PURPOSE OF PROVIDING FINANCIAL ASSISTANCE, MAKING PAYMENTS REQUIRED BY SECTION , AND PAYING ANY TRANSACTION COSTS NECESSARILY INCURRED IN CONNECTION WITH THE PROVISION OF FINANCIAL ASSISTANCE AS AUTHORIZED BY THIS ARTICLE; EXCEPT THAT THE USE OF ANY ASSISTANCE FUND MONEYS TO MAKE LEASE PAYMENTS REQUIRED BY LEASE-PURCHASE AGREEMENTS ENTERED INTO PURSUANT TO SECTION PAGE 7-HOUSE BILL

8 (2) SHALL BE SUBJECT TO ANNUAL APPROPRIATION BY THE GENERAL ASSEMBLY. (4) FOR EACH FISCAL YEAR COMMENCING ON OR AFTER JULY 1, 2008, AN EMERGENCY RESERVE OF AT LEAST ONE MILLION DOLLARS SHALL BE MAINTAINED IN THE ASSISTANCE FUND; EXCEPT THAT AN EMERGENCY RESERVE NEED NOT BE MAINTAINED IN ANY FISCAL YEAR IN WHICH THE AMOUNT OF PUBLIC SCHOOL LANDS INCOME CREDITED TO THE ASSISTANCE FUND IS AN AMOUNT EQUAL TO THE DIFFERENCE BETWEEN THE TOTAL AMOUNT OF LEASE PAYMENTS TO BE MADE BY THE STATE UNDER THE TERMS OF LEASE-PURCHASE AGREEMENTS ENTERED INTO PURSUANT TO SECTION (2) AND THE TOTAL AMOUNT OF MATCHING MONEYS TO BE PAID TO THE STATE AS LEASE PAYMENTS UNDER THE TERMS OF SUBLEASE-PURCHASE AGREEMENTS ENTERED INTO PURSUANT TO SECTION (2) RATHER THAN THIRTY-FIVE PERCENT OF THE GROSS AMOUNT OF PUBLIC SCHOOL LANDS INCOME RECEIVED BY THE STATE DURING THE FISCAL YEAR. THE BOARD MAY EXPEND MONEYS FROM THE EMERGENCY RESERVE ONLY TO PROVIDE EMERGENCY FINANCIAL ASSISTANCE TO ADDRESS A PUBLIC SCHOOL FACILITY EMERGENCY IN ACCORDANCE WITH SECTION (8) Division of public school capital construction assistance - creation - director - function - powers and duties. (1) (a) THERE IS HEREBY CREATED WITHIN THE DEPARTMENT A DIVISION OF STATE GOVERNMENT TO BE KNOWN AND DESIGNATED AS THE DIVISION OF PUBLIC SCHOOL CAPITAL CONSTRUCTION ASSISTANCE, THE HEAD OF WHICH SHALL BE THE DIRECTOR OF THE DIVISION OF PUBLIC SCHOOL CAPITAL CONSTRUCTION ASSISTANCE. PURSUANT TO SECTION 13 OF ARTICLE XII OF THE STATE CONSTITUTION, THE COMMISSIONER OF EDUCATION SHALL APPOINT THE DIRECTOR, AND THE COMMISSIONER SHALL GIVE GOOD FAITH CONSIDERATION TO THE RECOMMENDATIONS OF THE STATE BOARD AND THE BOARD PRIOR TO APPOINTING THE DIRECTOR. THE COMMISSIONER SHALL ALSO APPOINT SUCH OTHER PERSONNEL AS MAY BE NECESSARY TO FULFILL THE FUNCTIONS AND EXERCISE THE POWERS AND DUTIES OF THE DIVISION. (b) THE DIVISION AND THE DIRECTOR OF THE DIVISION SHALL EXERCISE THEIR POWERS AND PERFORM THEIR DUTIES AND FUNCTIONS UNDER THE DEPARTMENT AS IF THE SAME WERE TRANSFERRED TO THE DEPARTMENT BY A TYPE 2 TRANSFER, AS SUCH TRANSFER IS DEFINED IN THE "ADMINISTRATIVE ORGANIZATION ACT OF 1968", ARTICLE 1 OF TITLE 24, PAGE 8-HOUSE BILL

9 C.R.S. (2) THE FUNCTION OF THE DIVISION IS TO PROVIDE PROFESSIONAL AND TECHNICAL SUPPORT TO THE BOARD AS THE BOARD EXERCISES ITS POWERS AND DUTIES AS SPECIFIED IN THIS ARTICLE SO THAT FINANCIAL ASSISTANCE CAN BE PROVIDED FOR PUBLIC SCHOOLS IN AN EQUITABLE, EFFICIENT, AND EFFECTIVE MANNER. IN FURTHERANCE OF ITS FUNCTION, THE DIVISION, SUBJECT TO BOARD DIRECTION, HAS THE FOLLOWING POWERS AND DUTIES: (a) TO SUPPORT THE BOARD IN ESTABLISHING PUBLIC SCHOOL FACILITY CONSTRUCTION GUIDELINES PURSUANT TO SECTION ; (b) TO SUPPORT THE BOARD IN CONDUCTING OR CAUSING TO BE CONDUCTED THE FINANCIAL ASSISTANCE PRIORITY ASSESSMENT OF PUBLIC SCHOOLS THROUGHOUT THE STATE REQUIRED BY SECTION , AND, AS PART OF SUCH SUPPORT, TO INSPECT AND ASSESS PUBLIC SCHOOL FACILITIES OR EVALUATE THE RESULTS OF ANY SUCH INSPECTION AND ASSESSMENT CONDUCTED BY ANY CONTRACTOR RETAINED BY THE BOARD; (c) AT THE REQUEST OF THE BOARD, TO UNDERTAKE A PRELIMINARY REVIEW OF FINANCIAL ASSISTANCE APPLICATIONS SUBMITTED BY APPLICANTS AND ASSIST THE BOARD IN THE DEVELOPMENT OF THE PRIORITIZED LIST OF PUBLIC SCHOOL FACILITY CAPITAL CONSTRUCTION PROJECTS RECOMMENDED FOR FINANCIAL ASSISTANCE THAT THE BOARD IS REQUIRED TO PREPARE PURSUANT TO SECTION (2) (c); (d) TO ASSIST APPLICANTS AND POTENTIAL APPLICANTS IN IDENTIFYING CRITICAL CAPITAL CONSTRUCTION NEEDS USING THE PUBLIC SCHOOL FACILITY CONSTRUCTION GUIDELINES AS SPECIFIED IN SECTION ; AND (e) TO EXERCISE SUCH OTHER POWERS AND DUTIES AS MAY BE NECESSARY TO ADEQUATELY FULFILL ITS FUNCTION Public school capital construction assistance board - creation - general powers and duties - rules. (1) (a) THERE IS HEREBY CREATED WITHIN THE DEPARTMENT THE PUBLIC SCHOOL CAPITAL CONSTRUCTION ASSISTANCE BOARD, WHICH SHALL EXERCISE ITS POWERS AND PERFORM ITS DUTIES AND FUNCTIONS UNDER THE DEPARTMENT AS IF PAGE 9-HOUSE BILL

10 THE SAME WERE TRANSFERRED TO THE DEPARTMENT BY A TYPE 1 TRANSFER, AS SUCH TRANSFER IS DEFINED IN THE "ADMINISTRATIVE ORGANIZATION ACT OF 1968", ARTICLE 1 OF TITLE 24, C.R.S. THE BOARD SHALL CONSIST OF NINE APPOINTED MEMBERS, NONE OF WHOM SHALL HOLD ANY STATE ELECTIVE OFFICE, AND THE DIRECTOR OF THE DIVISION, WHO SHALL SERVE AS A NONVOTING EX OFFICIO MEMBER OF THE BOARD. FIVE VOTING MEMBERS OF THE BOARD SHALL CONSTITUTE A QUORUM. BOARD MEMBERS SHALL BE APPOINTED AS FOLLOWS: (I) THE STATE BOARD SHALL APPOINT THREE MEMBERS FROM DIFFERENT AREAS OF THE STATE AND FROM URBAN, SUBURBAN, AND RURAL SCHOOL DISTRICTS. THE MEMBERS APPOINTED BY THE STATE BOARD SHALL ALL HAVE DEMONSTRATED EXPERIENCE REGARDING PUBLIC SCHOOL FACILITY ISSUES AND SHALL INCLUDE: (A) ONE MEMBER WHO IS A SCHOOL DISTRICT BOARD MEMBER AT THE TIME OF APPOINTMENT; (B) ONE MEMBER WHO IS A PUBLIC SCHOOL SUPERINTENDENT OR ADMINISTRATOR AT THE TIME OF APPOINTMENT OR HAS RECENT EXPERIENCE AS A PUBLIC SCHOOL SUPERINTENDENT OR ADMINISTRATOR; AND (C) ONE MEMBER WHO IS A SCHOOL FACILITIES PLANNER OR MANAGER AT THE TIME OF APPOINTMENT OR HAS RECENT EXPERIENCE AS A SCHOOL FACILITIES PLANNER OR MANAGER. (II) THE GOVERNOR SHALL APPOINT THREE MEMBERS. THE MEMBERS APPOINTED BY THE GOVERNOR SHALL INCLUDE: (A) ONE MEMBER WHO IS AN ARCHITECT WHOSE PROFESSIONAL PRACTICE INCLUDES THE DESIGN AND REHABILITATION OF PUBLIC SCHOOL FACILITIES AT THE TIME OF APPOINTMENT OR WHO HAS RECENT EXPERIENCE REHABILITATING EXISTING PUBLIC SCHOOL FACILITIES AND DESIGNING NEW PUBLIC SCHOOL FACILITIES; (B) ONE MEMBER WHO IS AN ENGINEER WHOSE PROFESSIONAL PRACTICE AT THE TIME OF APPOINTMENT INCLUDES PUBLIC SCHOOL FACILITIES ENGINEERING OR WHO HAS RECENT EXPERIENCE IN PUBLIC SCHOOL FACILITIES ENGINEERING; AND PAGE 10-HOUSE BILL

11 (C) ONE MEMBER WHO IS A CONSTRUCTION MANAGER WHO AT THE TIME OF APPOINTMENT MANAGES PUBLIC SCHOOL FACILITIES CONSTRUCTION PROJECTS OR WHO HAS RECENT EXPERIENCE MANAGING SUCH PROJECTS. (III) THE GENERAL ASSEMBLY SHALL APPOINT THREE MEMBERS, ONE OF WHOM SHALL BE APPOINTED BY THE SPEAKER OF THE HOUSE OF REPRESENTATIVES, ONE OF WHOM SHALL BE APPOINTED BY THE PRESIDENT OF THE SENATE, AND ONE OF WHOM SHALL BE APPOINTED JOINTLY BY THE MINORITY LEADERS OF THE HOUSE OF REPRESENTATIVES AND THE SENATE. THE MEMBERS APPOINTED BY THE GENERAL ASSEMBLY SHALL INCLUDE: (A) ONE MEMBER WHO IS A SCHOOL FACILITIES PLANNER OR MANAGER AT THE TIME OF APPOINTMENT OR HAS RECENT EXPERIENCE AS A SCHOOL FACILITIES PLANNER OR MANAGER; (B) ONE MEMBER WHO HAS EXPERTISE IN TECHNOLOGY, INCLUDING BUT NOT LIMITED TO TECHNOLOGY FOR INDIVIDUAL STUDENT LEARNING AND CLASSROOM INSTRUCTION; AND (C) ONE MEMBER WHO HAS PUBLIC SCHOOL FINANCE EXPERTISE AND KNOWLEDGE REGARDING PUBLIC SCHOOL TRUST LANDS. (b) MEMBERS OF THE BOARD SHALL SERVE FOR TERMS OF TWO YEARS AND MAY SERVE UP TO THREE CONSECUTIVE TERMS; EXCEPT THAT THE INITIAL TERMS OF ONE OF THE MEMBERS APPOINTED BY THE STATE BOARD, ONE OF THE MEMBERS APPOINTED BY THE GOVERNOR, AND THE MEMBERS APPOINTED BY THE PRESIDENT OF THE SENATE AND THE MINORITY LEADERS OF THE HOUSE OF REPRESENTATIVES AND THE SENATE SHALL BE ONE YEAR. THE APPOINTING AUTHORITY FOR A MEMBER MAY REMOVE THE MEMBER FOR ANY CAUSE THAT RENDERS THE MEMBER INCAPABLE OF DISCHARGING OR UNFIT TO DISCHARGE THE MEMBER'S DUTIES. THE APPROPRIATE APPOINTING AUTHORITY SHALL FILL ANY VACANCY IN THE MEMBERSHIP OF THE BOARD BY APPOINTMENT, AND A MEMBER APPOINTED TO FILL A VACANCY SHALL SERVE UNTIL THE EXPIRATION OF THE TERM FOR WHICH THE VACANCY WAS FILLED. MEMBERS OF THE BOARD SHALL SERVE WITHOUT COMPENSATION BUT SHALL RECEIVE REIMBURSEMENT FOR TRAVEL AND OTHER NECESSARY EXPENSES ACTUALLY INCURRED IN THE PERFORMANCE OF THEIR DUTIES. THE BOARD SHALL ELECT A CHAIR AT ITS INITIAL MEETING. (2) THE FUNCTION OF THE BOARD IS TO PROTECT THE HEALTH AND PAGE 11-HOUSE BILL

12 SAFETY OF STUDENTS, TEACHERS, AND OTHER PERSONS USING PUBLIC SCHOOL FACILITIES AND MAXIMIZE STUDENT ACHIEVEMENT BY ENSURING THAT THE CONDITION AND CAPACITY OF PUBLIC SCHOOL FACILITIES ARE SUFFICIENT TO PROVIDE A SAFE AND UNCROWDED ENVIRONMENT THAT IS CONDUCIVE TO STUDENTS' LEARNING. IN PERFORMING ITS FUNCTION, THE BOARD SHALL ENSURE THE MOST EQUITABLE, EFFICIENT, AND EFFECTIVE USE OF STATE REVENUES DEDICATED TO PROVIDE FINANCIAL ASSISTANCE FOR CAPITAL CONSTRUCTION PROJECTS PURSUANT TO THE PROVISIONS OF THIS ARTICLE BY ASSESSING PUBLIC SCHOOL CAPITAL CONSTRUCTION NEEDS THROUGHOUT THE STATE AND PROVIDING EXPERT RECOMMENDATIONS BASED ON OBJECTIVE CRITERIA TO THE STATE BOARD REGARDING THE APPROPRIATE PRIORITIZATION AND ALLOCATION OF SUCH FINANCIAL ASSISTANCE. TO FURTHER THE PERFORMANCE OF ITS FUNCTION, THE BOARD, IN ADDITION TO ANY OTHER POWERS AND DUTIES SPECIFIED IN THIS ARTICLE, HAS THE FOLLOWING POWERS AND DUTIES: (a) TO ESTABLISH PUBLIC SCHOOL FACILITY CONSTRUCTION GUIDELINES AS SPECIFIED IN SECTION TO USE IN REVIEWING FINANCIAL ASSISTANCE APPLICATIONS AND RECOMMENDING TO THE STATE BOARD A PRIORITIZED LIST OF PROJECTS RECOMMENDED TO RECEIVE FINANCIAL ASSISTANCE AS SPECIFIED IN PARAGRAPH (c) OF THIS SUBSECTION (2); (b) AS SOON AS POSSIBLE FOLLOWING THE ESTABLISHMENT OF SCHOOL FACILITY CONSTRUCTION GUIDELINES PURSUANT TO PARAGRAPH (a) OF THIS SUBSECTION (2), TO CONDUCT OR CONTRACT FOR A FINANCIAL ASSISTANCE PRIORITY ASSESSMENT OF PUBLIC SCHOOL BUILDINGS AND FACILITIES IN THIS STATE BASED ON THE CRITERIA SET FORTH IN SECTION (2); (c) TO REVIEW FINANCIAL ASSISTANCE APPLICATIONS AND PREPARE AND SUBMIT TO THE STATE BOARD A PRIORITIZED LIST OF PROJECTS TO RECEIVE FINANCIAL ASSISTANCE AND THE AMOUNT AND TYPE OF FINANCIAL ASSISTANCE THAT SHOULD BE PROVIDED FOR EACH PROJECT; (d) TO ESTABLISH GUIDELINES FOR THE DIVISION TO FOLLOW WHEN ASSISTING POTENTIAL APPLICANTS IN IDENTIFYING CRITICAL CAPITAL CONSTRUCTION NEEDS AND PREPARING FINANCIAL ASSISTANCE APPLICATIONS PURSUANT TO SECTION (2) (d); PAGE 12-HOUSE BILL

13 (e) WITH THE SUPPORT OF THE DIVISION, TO ASSIST APPLICANTS THAT CANNOT FEASIBLY MAINTAIN THEIR OWN CONSTRUCTION MANAGEMENT STAFF IN IMPLEMENTING THE PROJECTS FOR WHICH FINANCIAL ASSISTANCE IS PROVIDED, INCLUDING BUT NOT LIMITED TO PROVIDING ASSISTANCE WITH THE PREPARATION OF REQUESTS FOR BIDS OR PROPOSALS, CONTRACT NEGOTIATIONS, CONTRACT IMPLEMENTATION, AND PROJECT AND CONSTRUCTION MANAGEMENT; (f) WITH THE SUPPORT OF THE DIVISION, TO ASSIST APPLICANTS IN IMPLEMENTING ENERGY EFFICIENT PUBLIC SCHOOL FACILITY DESIGN AND CONSTRUCTION PRACTICES; (g) TO AUTHORIZE THE STATE TREASURER TO ENTER INTO LEASE-PURCHASE AGREEMENTS ON BEHALF OF THE STATE AS AUTHORIZED BY THIS ARTICLE IN ORDER TO FINANCE PUBLIC SCHOOL FACILITY CAPITAL CONSTRUCTION; (h) TO ENTER INTO SUBLEASE-PURCHASE AGREEMENTS ON BEHALF OF THE STATE TO SUBLEASE PUBLIC SCHOOL FACILITIES FINANCED BY THE LEASE-PURCHASE AGREEMENTS TO APPLICANTS; AND (i) (I) TO PROMULGATE SUCH RULES, IN ACCORDANCE WITH ARTICLE 4 OF TITLE 24, C.R.S., AS ARE NECESSARY AND PROPER FOR THE ADMINISTRATION OF THIS ARTICLE, INCLUDING BUT NOT LIMITED TO: (A) CONFLICT OF INTEREST RULES FOR BOARD MEMBERS; (B) RULES ESTABLISHING EVALUATION CRITERIA FOR MATCHING MONEYS REQUIREMENT WAIVER OR REDUCTION APPLICATIONS SUBMITTED TO THE BOARD PURSUANT TO SECTION (10); AND (C) RULES ESTABLISHING THE MEANS BY WHICH PUBLIC SCHOOL FACILITIES AND PROJECTS FINANCED IN WHOLE OR IN PART WITH FINANCIAL ASSISTANCE PROVIDED PURSUANT THIS ARTICLE ARE TO BE PUBLICLY IDENTIFIED AS HAVING BEEN SO FINANCED. (II) THE BOARD SHALL PROVIDE A COPY OF ANY PROPOSED BOARD RULE TO THE STATE BOARD ON OR BEFORE THE DATE ON WHICH THE BOARD ISSUES A NOTICE OF PROPOSED RULE-MAKING FOR THE RULE PURSUANT TO SECTION (3), C.R.S. PAGE 13-HOUSE BILL

14 Public school facility construction guidelines - establishment by board - use. (1) (a) THE BOARD SHALL ESTABLISH PUBLIC SCHOOL FACILITY CONSTRUCTION GUIDELINES FOR USE BY THE BOARD IN ASSESSING AND PRIORITIZING PUBLIC SCHOOL CAPITAL CONSTRUCTION NEEDS THROUGHOUT THE STATE AS REQUIRED BY SECTION , REVIEWING APPLICATIONS FOR FINANCIAL ASSISTANCE, AND MAKING RECOMMENDATIONS TO THE STATE BOARD REGARDING APPROPRIATE ALLOCATION OF AWARDS OF FINANCIAL ASSISTANCE FROM THE ASSISTANCE FUND ONLY TO APPLICANTS. THE BOARD SHALL ESTABLISH THE GUIDELINES IN RULES PROMULGATED IN ACCORDANCE WITH ARTICLE 4 OF TITLE 24, C.R.S. (b) IT IS THE INTENT OF THE GENERAL ASSEMBLY THAT THE PUBLIC SCHOOL FACILITY CONSTRUCTION GUIDELINES ESTABLISHED BY THE BOARD BE USED ONLY FOR THE PURPOSES SPECIFIED IN PARAGRAPH (a) OF THIS SUBSECTION (1). (2) THE PUBLIC SCHOOL FACILITY CONSTRUCTION GUIDELINES SHALL IDENTIFY AND DESCRIBE THE CAPITAL CONSTRUCTION, RENOVATION, AND EQUIPMENT NEEDS IN PUBLIC SCHOOL FACILITIES AND MEANS OF ADDRESSING THOSE NEEDS THAT WILL PROVIDE EDUCATIONAL AND SAFETY BENEFITS AT A REASONABLE COST. IN PREPARING THE GUIDELINES, THE BOARD SHALL ADDRESS THE FOLLOWING CONSIDERATIONS: (a) HEALTH AND SAFETY ISSUES, INCLUDING SECURITY NEEDS AND ALL APPLICABLE BUILDING, HEALTH, SAFETY, AND ENVIRONMENTAL CODES AND STANDARDS REQUIRED BY STATE AND FEDERAL LAW; (b) TECHNOLOGY, INCLUDING BUT NOT LIMITED TO TELECOMMUNICATIONS AND INTERNET CONNECTIVITY TECHNOLOGY AND TECHNOLOGY FOR INDIVIDUAL STUDENT LEARNING AND CLASSROOM INSTRUCTION; (c) BUILDING SITE REQUIREMENTS; (d) BUILDING PERFORMANCE STANDARDS AND GUIDELINES, INCLUDING BUT NOT LIMITED TO GREEN BUILDING AND ENERGY EFFICIENCY CRITERIA AS SPECIFIED IN EXECUTIVE ORDER D , "GREENING OF STATE GOVERNMENT: DETAILED IMPLEMENTATION", ISSUED BY THE GOVERNOR ON APRIL 16, 2007, OR ANY SUBSEQUENT EXECUTIVE ORDERS OR PAGE 14-HOUSE BILL

15 OTHER POLICY DIRECTIVES CONCERNING GREEN BUILDING AND ENERGY EFFICIENCY CRITERIA ISSUED BY THE GOVERNOR OR THE GOVERNOR'S ENERGY OFFICE; (e) FUNCTIONALITY OF EXISTING AND PLANNED PUBLIC SCHOOL FACILITIES FOR CORE EDUCATIONAL PROGRAMS, PARTICULARLY THOSE EDUCATIONAL PROGRAMS FOR WHICH THE STATE BOARD HAS ADOPTED STATE MODEL CONTENT STANDARDS; (f) CAPACITY OF EXISTING AND PLANNED PUBLIC SCHOOL FACILITIES, TAKING INTO CONSIDERATION POTENTIAL EXPANSION OF SERVICES FOR THE BENEFIT OF STUDENTS SUCH AS FULL-DAY KINDERGARTEN AND PRESCHOOL- AND SCHOOL-BASED HEALTH SERVICES; (g) PUBLIC SCHOOL FACILITY ACCESSIBILITY; AND (h) THE HISTORIC SIGNIFICANCE OF EXISTING PUBLIC SCHOOL FACILITIES AND THE POTENTIAL TO MEET CURRENT PROGRAMMING NEEDS BY REHABILITATING SUCH FACILITIES. (3) THE BOARD AND THE DIVISION SHALL APPLY THE PUBLIC SCHOOL FACILITY CONSTRUCTION GUIDELINES IN CONDUCTING THE FINANCIAL ASSISTANCE PRIORITY ASSESSMENT REQUIRED BY SECTION Statewide financial assistance priority assessment - public school facilities. (1) (a) AS SOON AS POSSIBLE FOLLOWING THE ESTABLISHMENT OF THE PUBLIC SCHOOL FACILITY CONSTRUCTION GUIDELINES PURSUANT TO SECTION , THE BOARD SHALL CONDUCT WITH THE ASSISTANCE OF THE DIVISION, OR CONTRACT FOR, A FINANCIAL ASSISTANCE PRIORITY ASSESSMENT OF PUBLIC SCHOOL FACILITIES THROUGHOUT THE STATE AS PROVIDED IN THIS SECTION. THE BOARD SHALL ORDER PAYMENT OF THE COSTS INCURRED IN CONDUCTING OR CONTRACTING FOR THE FINANCIAL ASSISTANCE PRIORITY ASSESSMENT FROM THE ASSISTANCE FUND. (b) IT IS THE INTENT OF THE GENERAL ASSEMBLY THAT THE FINANCIAL ASSISTANCE PRIORITY ASSESSMENT REQUIRED BY THIS SECTION BE USED ONLY FOR THE PURPOSES SPECIFIED IN PARAGRAPH (a) OF THIS SUBSECTION (1) AND SECTION (1) (a). PAGE 15-HOUSE BILL

16 (2) (a) THE FINANCIAL ASSISTANCE PRIORITY ASSESSMENT SHALL ASSESS PUBLIC SCHOOL FACILITY CAPITAL CONSTRUCTION PROJECTS BASED ON: (I) THE CONDITION OF THE PUBLIC SCHOOL FACILITY; (II) AIR AND WATER QUALITY IN THE PUBLIC SCHOOL FACILITY; (III) PUBLIC SCHOOL FACILITY SPACE REQUIREMENTS; (IV) THE ABILITY TO ACCOMMODATE EDUCATIONAL TECHNOLOGY, INCLUDING BUT NOT LIMITED TO TECHNOLOGY FOR INDIVIDUAL STUDENT LEARNING AND CLASSROOM INSTRUCTION; (V) SITE REQUIREMENTS FOR THE PUBLIC SCHOOL FACILITY; AND (VI) PUBLIC SCHOOL FACILITY DEMOGRAPHICS, INCLUDING A FIVE-YEAR PROJECTION CONCERNING ANTICIPATED SUBSTANTIAL CHANGES IN THE PUPIL COUNT OF INDIVIDUAL PUBLIC SCHOOL FACILITIES. (b) THE FINANCIAL ASSISTANCE PRIORITY ASSESSMENT SHALL INCLUDE FIVE-YEAR PROJECTIONS REGARDING THE ISSUES DESCRIBED IN PARAGRAPH (a) OF THIS SUBSECTION (2). (c) THE BOARD, OR THE DIVISION UPON THE BOARD'S REQUEST, SHALL ESTABLISH A DATABASE TO STORE THE DATA COLLECTED THROUGH THE FINANCIAL ASSISTANCE PRIORITY ASSESSMENT CONDUCTED PURSUANT TO THIS SECTION. THE BOARD OR THE DIVISION SHALL MAKE THE DATA COLLECTED AVAILABLE TO THE PUBLIC IN A FORM THAT IS EASILY ACCESSIBLE AND COMPLIES WITH ANY FEDERAL OR STATE LAWS OR REGULATIONS CONCERNING PRIVACY. (3) THE BOARD SHALL USE THE PUBLIC SCHOOL FACILITY CONSTRUCTION GUIDELINES ESTABLISHED PURSUANT TO SECTION IN CONDUCTING THE FINANCIAL ASSISTANCE PRIORITY ASSESSMENT DESCRIBED IN THIS SECTION Financial assistance for public school capital construction - application requirements - evaluation criteria - local match requirements. (1) FOR FISCAL YEARS COMMENCING ON OR AFTER PAGE 16-HOUSE BILL

17 JULY 1, 2008, THE BOARD, WITH THE SUPPORT OF THE DIVISION AND SUBJECT TO THE FINAL APPROVAL OF THE STATE BOARD REGARDING FINANCIAL ASSISTANCE AWARDS AS SPECIFIED IN THIS SECTION, SHALL PROVIDE FINANCIAL ASSISTANCE AS SPECIFIED IN THIS SECTION SUBJECT TO THE FOLLOWING LIMITATIONS: (a) THE BOARD MAY ONLY PROVIDE FINANCIAL ASSISTANCE FOR A CAPITAL CONSTRUCTION PROJECT FOR A PUBLIC SCHOOL FACILITY THAT THE APPLICANT OWNS OR WILL HAVE THE RIGHT TO OWN IN THE FUTURE UNDER THE TERMS OF A LEASE-PURCHASE AGREEMENT WITH THE OWNER OF THE FACILITY OR A SUBLEASE-PURCHASE AGREEMENT WITH THE STATE ENTERED INTO PURSUANT TO SECTION (2). (b) THE BOARD MAY PROVIDE FINANCIAL ASSISTANCE TO A CHARTER SCHOOL THAT FIRST OCCUPIES A PUBLIC SCHOOL FACILITY ON OR AFTER THE EFFECTIVE DATE OF THIS PARAGRAPH (b) ONLY IF THE PUBLIC SCHOOL FACILITY OCCUPIED BY THE CHARTER SCHOOL COMPLIED WITH ALL PUBLIC SCHOOL FACILITIES CONSTRUCTION GUIDELINES ADDRESSING HEALTH AND SAFETY ISSUES ESTABLISHED BY THE BOARD PURSUANT TO SECTION (2) (a) AT THE TIME THE CHARTER SCHOOL FIRST OCCUPIED THE FACILITY. (2) (a) EXCEPT AS OTHERWISE PROVIDED IN SUBPARAGRAPH (II) OF PARAGRAPH (b) OF THIS SUBSECTION (2), THE BOARD SHALL ESTABLISH AN ANNUAL FINANCIAL ASSISTANCE TIMELINE FOR USE BY APPLICANTS IN APPLYING FOR FINANCIAL ASSISTANCE AND OTHERWISE MEETING FINANCIAL ASSISTANCE REQUIREMENTS AND FOR USE BY THE BOARD IN REVIEWING FINANCIAL ASSISTANCE APPLICATIONS AND RECOMMENDING FINANCIAL ASSISTANCE AWARDS TO THE STATE BOARD. THE TIMELINE SHALL SPECIFY: (I) A DEADLINE FOR APPLICANTS TO SUBMIT FINANCIAL ASSISTANCE APPLICATIONS TO THE BOARD THAT ALLOWS SUFFICIENT TIME FOR SUBMISSION OF SUCH APPLICATIONS; (II) THE PERIOD IN WHICH THE BOARD, WITH THE SUPPORT OF THE DIVISION, WILL REVIEW FINANCIAL ASSISTANCE APPLICATIONS; (III) A DEADLINE FOR THE BOARD TO SUBMIT TO THE STATE BOARD THE PRIORITIZED LIST OF PROJECTS FOR WHICH THE BOARD RECOMMENDS THE PROVISION OF FINANCIAL ASSISTANCE AS REQUIRED BY SUBSECTION (7) PAGE 17-HOUSE BILL

18 OF THIS SECTION; AND (IV) ANY ADDITIONAL DEADLINES OR DEADLINE EXTENSION PERIODS NEEDED TO ENSURE THAT APPLICANTS SEEKING VOTER APPROVAL TO OBTAIN MATCHING MONEYS REQUIRED PURSUANT TO SUBSECTION (9) OF THIS SECTION HAVE SUFFICIENT OPPORTUNITY TO OBTAIN SUCH VOTER APPROVAL OR OTHERWISE NEEDED TO ENSURE THE EFFICIENT AND EFFECTIVE ADMINISTRATION OF THIS ARTICLE. (b) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (a) OF THIS SUBSECTION (2): (I) THE BOARD: (A) AFTER RECEIVING AN APPLICATION FOR EMERGENCY FINANCIAL ASSISTANCE MADE PURSUANT TO SUBSECTION (8) OF THIS SECTION, MAY PROVIDE EMERGENCY FINANCIAL ASSISTANCE TO AN APPLICANT AT ANY TIME; AND (B) MAY ESTABLISH A TIMELINE FOR THE FISCAL YEAR ONLY THAT TAKES INTO ACCOUNT ANY INCOMPLETE STATUS OF THE PRIORITY ASSESSMENT REQUIRED BY SECTION , ALLOWS AWARDS OF FINANCIAL ASSISTANCE TO BE MADE BASED ON CONSIDERATION OF SO MUCH OF THE ASSESSMENT AS HAS BEEN COMPLETED, AND DIFFERS FROM SUBSEQUENT ANNUAL TIMELINES. (II) IN ORDER TO ENSURE EFFICIENT SUBMISSION AND REVIEW OF FINANCIAL ASSISTANCE APPLICATIONS AND ALLOW THE BOARD TO PROVIDE FINANCIAL ASSISTANCE AS SOON AS IS FEASIBLE, ON AND AFTER THE EFFECTIVE DATE OF THIS SUBPARAGRAPH (II), BUT BEFORE THE APPOINTMENT OF THE BOARD, THE STATE BOARD, OR SUCH PERSONNEL OF THE DEPARTMENT AS THE STATE BOARD MAY DESIGNATE, MAY ESTABLISH INTERIM FINANCIAL ASSISTANCE APPLICATION DEADLINES AND APPLICATIONS FOR USE BY APPLICANTS IN APPLYING FOR FINANCIAL ASSISTANCE FOR THE FISCAL YEAR ONLY. THE STATE BOARD MAY ALSO DESIGNATE DEPARTMENT PERSONNEL TO PRELIMINARILY REVIEW FINANCIAL ASSISTANCE APPLICATIONS UNTIL SUCH TIME AS THE BOARD AND THE DIRECTOR OF THE DIVISION HAVE BEEN APPOINTED. (3) A CHARTER SCHOOL SHALL NOTIFY ITS AUTHORIZER THAT IT PAGE 18-HOUSE BILL

19 INTENDS TO APPLY FOR FINANCIAL ASSISTANCE AT LEAST THREE MONTHS PRIOR TO THE APPLICATION SUBMISSION DEADLINE. THE CHARTER SCHOOL SHALL FORWARD ITS APPLICATION FOR FINANCIAL ASSISTANCE TO ITS AUTHORIZER, WHICH SHALL FORWARD THE APPLICATION TO THE BOARD TOGETHER WITH A LETTER INDICATING THE AUTHORIZER'S POSITION ON THE APPLICATION. THE COLORADO SCHOOL FOR THE DEAF AND BLIND SHALL APPLY FOR FINANCIAL ASSISTANCE DIRECTLY. FINANCIAL ASSISTANCE AWARDED TO A CHARTER SCHOOL AS A MATCHING CASH GRANT SHALL BE PROVIDED TO THE AUTHORIZER, WHICH SHALL DISTRIBUTE ALL FINANCIAL ASSISTANCE RECEIVED AS A GRANT TO THE CHARTER SCHOOL AND MAY NOT RETAIN ANY PORTION OF SUCH MONEYS FOR ANY PURPOSE. ALL OTHER FINANCIAL ASSISTANCE SHALL BE PROVIDED IN THE FORM OF LEASE PAYMENTS MADE BY THE BOARD DIRECTLY TO A LESSOR OR TRUSTEE AS REQUIRED BY THE TERMS OF THE APPLICABLE LEASE-PURCHASE AGREEMENT. (4) APPLICATIONS FOR FINANCIAL ASSISTANCE SUBMITTED TO THE BOARD SHALL BE IN A FORM PRESCRIBED BY THE BOARD AND SHALL INCLUDE: (a) A DESCRIPTION OF THE SCOPE AND NATURE OF THE PUBLIC SCHOOL FACILITY CAPITAL CONSTRUCTION PROJECT FOR WHICH FINANCIAL ASSISTANCE IS SOUGHT; (b) A DESCRIPTION OF THE ARCHITECTURAL, FUNCTIONAL, AND CONSTRUCTION STANDARDS THAT ARE TO BE APPLIED TO THE CAPITAL CONSTRUCTION PROJECT THAT INDICATES WHETHER THE STANDARDS ARE CONSISTENT WITH THE PUBLIC SCHOOL FACILITY CONSTRUCTION GUIDELINES ESTABLISHED BY THE BOARD PURSUANT TO SECTION AND PROVIDES AN EXPLANATION FOR THE USE OF ANY STANDARD THAT IS NOT CONSISTENT WITH THE GUIDELINES; (c) THE ESTIMATED AMOUNT OF FINANCIAL ASSISTANCE NEEDED FOR THE CAPITAL CONSTRUCTION PROJECT AND THE FORM AND AMOUNT OF MATCHING MONEYS THAT THE APPLICANT WILL PROVIDE FOR THE PROJECT; (d) (I) IF THE CAPITAL CONSTRUCTION PROJECT INVOLVES THE CONSTRUCTION OF A NEW PUBLIC SCHOOL FACILITY OR A MAJOR RENOVATION OF AN EXISTING PUBLIC SCHOOL FACILITY, A DEMONSTRATION OF THE ABILITY AND WILLINGNESS OF THE APPLICANT TO MAINTAIN THE PROJECT OVER TIME THAT INCLUDES, AT A MINIMUM, THE ESTABLISHMENT PAGE 19-HOUSE BILL

20 OF A CAPITAL RENEWAL BUDGET AND A COMMITMENT TO MAKE ANNUAL CONTRIBUTIONS TO A CAPITAL RENEWAL RESERVE WITHIN A SCHOOL DISTRICT'S CAPITAL RESERVE FUND OR ANY FUNCTIONALLY SIMILAR RESERVE FUND SEPARATELY MAINTAINED BY AN APPLICANT THAT IS NOT A SCHOOL DISTRICT. (II) AS USED IN THIS PARAGRAPH (d), "CAPITAL RENEWAL RESERVE" MEANS MONEYS SET ASIDE BY AN APPLICANT FOR THE SPECIFIC PURPOSE OF REPLACING MAJOR PUBLIC SCHOOL FACILITY SYSTEMS WITH PROJECTED LIFE CYCLES SUCH AS ROOFS, INTERIOR FINISHES, ELECTRICAL SYSTEMS AND HEATING, VENTILATING, AND AIR CONDITIONING SYSTEMS. (e) IF THE APPLICATION IS FOR FINANCIAL ASSISTANCE FOR THE RENOVATION, RECONSTRUCTION, EXPANSION, OR REPLACEMENT OF AN EXISTING PUBLIC SCHOOL FACILITY, A DESCRIPTION OF THE CONDITION OF THE PUBLIC SCHOOL FACILITY AT THE TIME THE APPLICANT PURCHASED OR COMPLETED THE CONSTRUCTION OF THE PUBLIC SCHOOL FACILITY AND, IF THE PUBLIC SCHOOL FACILITY WAS NOT NEW OR WAS NOT ADEQUATE AT THAT TIME, THE RATIONALE OF THE APPLICANT FOR PURCHASING THE PUBLIC SCHOOL FACILITY OR CONSTRUCTING IT IN THE MANNER IN WHICH IT DID; (f) A STATEMENT REGARDING THE MEANS BY WHICH THE APPLICANT INTENDS TO PROVIDE MATCHING MONEYS REQUIRED FOR THE PROJECTS, INCLUDING BUT NOT LIMITED TO MEANS SUCH AS VOTER-APPROVED MULTIPLE-FISCAL YEAR DEBT OR OTHER FINANCIAL OBLIGATIONS, GIFTS, GRANTS, DONATIONS, OR ANY OTHER MEANS OF FINANCING PERMITTED BY LAW, OR THE INTENT OF THE APPLICANT TO SEEK A WAIVER OF THE MATCHING MONEYS REQUIREMENT PURSUANT TO SUBSECTION (10) OF THIS SECTION. IF AN APPLICANT THAT IS A SCHOOL DISTRICT OR A BOARD OF COOPERATIVE SERVICES WITH A PARTICIPATING SCHOOL DISTRICT INTENDS TO RAISE MATCHING MONEYS BY OBTAINING VOTER APPROVAL TO ENTER INTO A SUBLEASE-PURCHASE AGREEMENT THAT CONSTITUTES AN INDEBTEDNESS OF THE DISTRICT AS AUTHORIZED BY SECTION , IT SHALL INDICATE WHETHER IT HAS RECEIVED THE REQUIRED VOTER APPROVAL OR, IF THE ELECTION HAS NOT ALREADY BEEN HELD, THE ANTICIPATED DATE OF THE ELECTION. (g) A DESCRIPTION OF ANY EFFORTS BY THE APPLICANT TO COORDINATE CAPITAL CONSTRUCTION PROJECTS WITH LOCAL GOVERNMENTAL ENTITIES OR COMMUNITY-BASED OR OTHER PAGE 20-HOUSE BILL

21 ORGANIZATIONS THAT PROVIDE FACILITIES OR SERVICES THAT BENEFIT THE COMMUNITY IN ORDER TO MORE EFFICIENTLY OR EFFECTIVELY PROVIDE SUCH FACILITIES OR SERVICES, INCLUDING BUT NOT LIMITED TO A DESCRIPTION OF ANY FINANCIAL COMMITMENT RECEIVED FROM ANY SUCH ENTITY OR ORGANIZATION THAT WILL ALLOW BETTER LEVERAGING OF ANY FINANCIAL ASSISTANCE AWARDED; AND (h) ANY OTHER INFORMATION THAT THE BOARD MAY REQUIRE FOR THE EVALUATION OF THE PROJECT. (5) THE BOARD, TAKING INTO CONSIDERATION THE FINANCIAL ASSISTANCE PRIORITY ASSESSMENT CONDUCTED PURSUANT TO SECTION , SHALL PRIORITIZE APPLICATIONS THAT DESCRIBE PUBLIC SCHOOL FACILITY CAPITAL CONSTRUCTION PROJECTS DEEMED ELIGIBLE FOR FINANCIAL ASSISTANCE BASED ON THE FOLLOWING CRITERIA, IN DESCENDING ORDER OF IMPORTANCE: (a) (I) PROJECTS THAT WILL ADDRESS SAFETY HAZARDS OR HEALTH CONCERNS AT EXISTING PUBLIC SCHOOL FACILITIES, INCLUDING CONCERNS RELATING TO PUBLIC SCHOOL FACILITY SECURITY; (II) IN PRIORITIZING AN APPLICATION FOR A PUBLIC SCHOOL FACILITY RENOVATION PROJECT THAT WILL ADDRESS SAFETY HAZARDS OR HEALTH CONCERNS, THE BOARD SHALL CONSIDER THE CONDITION OF THE ENTIRE PUBLIC SCHOOL FACILITY FOR WHICH THE PROJECT IS PROPOSED AND DETERMINE WHETHER IT WOULD BE MORE FISCALLY PRUDENT TO REPLACE THE ENTIRE FACILITY THAN TO PROVIDE FINANCIAL ASSISTANCE FOR THE RENOVATION PROJECT. (b) PROJECTS THAT WILL RELIEVE OVERCROWDING IN PUBLIC SCHOOL FACILITIES, INCLUDING BUT NOT LIMITED TO PROJECTS THAT WILL ALLOW STUDENTS TO MOVE FROM TEMPORARY INSTRUCTIONAL FACILITIES INTO PERMANENT FACILITIES; (c) PROJECTS THAT ARE DESIGNED TO INCORPORATE TECHNOLOGY INTO THE EDUCATIONAL ENVIRONMENT; AND (d) ALL OTHER PROJECTS. (6) THE BOARD MAY REQUEST THAT THE DIVISION UNDERTAKE A PAGE 21-HOUSE BILL

22 PRELIMINARY REVIEW OF ANY OR ALL APPLICATIONS FOR FINANCIAL ASSISTANCE, AND THE BOARD MAY ALSO REQUEST THAT ANY DEPARTMENT, AGENCY, OR INSTITUTION OF STATE GOVERNMENT WITH EXPERTISE OR EXPERIENCE IN CONSTRUCTION MANAGEMENT PROVIDE ASSISTANCE TO THE BOARD WITH REGARD TO THE EVALUATION OF SUCH APPLICATIONS FOR FINANCIAL ASSISTANCE. (7) PURSUANT TO THE TIMELINES ESTABLISHED PURSUANT TO SUBSECTION (2) OF THIS SECTION FOR ANY FISCAL YEAR FOR WHICH FINANCIAL ASSISTANCE IS TO BE AWARDED, AND AFTER PRIORITIZING PUBLIC SCHOOL FACILITY CAPITAL CONSTRUCTION PROJECTS AS SPECIFIED IN SUBSECTION (5) OF THIS SECTION, THE BOARD SHALL SUBMIT TO THE STATE BOARD A PRIORITIZED LIST OF PROJECTS FOR WHICH THE BOARD RECOMMENDS THE PROVISION OF FINANCIAL ASSISTANCE. THE PRIORITIZED LIST SHALL INCLUDE THE BOARD'S RECOMMENDATION AS TO THE AMOUNT AND TYPE OF FINANCIAL ASSISTANCE TO BE PROVIDED AND A STATEMENT OF THE SOURCE AND AMOUNT OF APPLICANT MATCHING MONEYS FOR EACH RECOMMENDED PROJECT BASED UPON INFORMATION PROVIDED BY THE APPLICANT. THE BOARD MAY RECOMMEND THAT ANY SPECIFIC PROJECT ONLY RECEIVE FINANCIAL ASSISTANCE IF ANOTHER HIGHER PRIORITY PROJECT OR GROUP OF PROJECTS BECOMES INELIGIBLE FOR FINANCIAL ASSISTANCE DUE TO THE INABILITY OF AN APPLICANT TO RAISE REQUIRED MATCHING MONEYS BY A DEADLINE PRESCRIBED BY THE BOARD AS A CONDITION OF A FINANCIAL ASSISTANCE AWARD FOR THE HIGHER PRIORITY PROJECT OR GROUP OF PROJECTS. THE STATE BOARD MAY APPROVE, DISAPPROVE, OR MODIFY THE PROVISION OF FINANCIAL ASSISTANCE FOR ANY PROJECT RECOMMENDED BY THE BOARD IF THE STATE BOARD CONCLUDES THAT THE BOARD MISINTERPRETED THE RESULTS OF THE PRIORITIZATION ASSESSMENT CONDUCTED PURSUANT TO SECTION OR MISAPPLIED THE PRIORITIZATION CRITERIA SPECIFIED IN SUBSECTION (5) OF THIS SECTION. THE STATE BOARD SHALL SPECIFICALLY EXPLAIN IN WRITING ITS REASONS FOR FINDING THAT THE BOARD MISINTERPRETED THE RESULTS OF THE PRIORITY ASSESSMENT OR MISAPPLIED THE PRIORITIZATION CRITERIA WHEN DISAPPROVING OR MODIFYING ANY FINANCIAL ASSISTANCE AWARD RECOMMENDED BY THE BOARD. (8) (a) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, IN THE EVENT OF A PUBLIC SCHOOL FACILITY EMERGENCY, AN ENTITY THAT MAY BE AN APPLICANT AND THAT IS OPERATING IN THE AFFECTED PUBLIC SCHOOL FACILITY MAY SUBMIT AN APPLICATION TO THE BOARD FOR PAGE 22-HOUSE BILL

23 EMERGENCY FINANCIAL ASSISTANCE TO ADDRESS THE EMERGENCY. THE APPLICATION SHALL DISCLOSE ANY INSURANCE PROCEEDS, CASH RESERVES, OR CAPITAL CONSTRUCTION RESERVES AVAILABLE TO PAY THE COSTS OF ADDRESSING THE EMERGENCY, AND INSURANCE PROCEEDS THAT BECOME AVAILABLE ONLY AFTER AN APPLICANT HAS RECEIVED EMERGENCY FINANCIAL ASSISTANCE SHALL BE USED FIRST TO REIMBURSE THE ASSISTANCE FUND FOR THE EMERGENCY FINANCIAL ASSISTANCE. THE BOARD SHALL MEET WITHIN FIFTEEN DAYS OF RECEIVING THE APPLICATION TO DETERMINE WHETHER TO RECOMMEND TO THE STATE BOARD THAT EMERGENCY FINANCIAL ASSISTANCE BE PROVIDED, THE AMOUNT OF ANY ASSISTANCE RECOMMENDED TO BE PROVIDED, AND ANY RECOMMENDED CONDITIONS THAT THE APPLICANT MUST MEET TO RECEIVE THE ASSISTANCE. THE STATE BOARD SHALL MEET WITHIN FIVE DAYS OF RECEIVING THE BOARD'S RECOMMENDATIONS TO DETERMINE WHETHER TO AUTHORIZE THE BOARD TO AWARD EMERGENCY FINANCIAL ASSISTANCE AS RECOMMENDED BY THE BOARD, MODIFY THE RECOMMENDED AWARD OF ASSISTANCE, OR PROHIBIT THE BOARD FROM AWARDING ASSISTANCE. THE BOARD MAY USE ANY UNENCUMBERED AND UNEXPENDED MONEYS IN THE ASSISTANCE FUND, INCLUDING THE EMERGENCY RESERVE OF THE ASSISTANCE FUND, TO PROVIDE EMERGENCY FINANCIAL ASSISTANCE. (b) AS USED IN THIS SUBSECTION (8), "PUBLIC SCHOOL FACILITY EMERGENCY" MEANS AN UNANTICIPATED EVENT THAT MAKES ALL OR A SIGNIFICANT PORTION OF A PUBLIC SCHOOL FACILITY UNUSABLE FOR EDUCATIONAL PURPOSES OR THREATENS THE HEALTH OR SAFETY OF PERSONS USING THE PUBLIC SCHOOL FACILITY. (9) EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (10) OF THIS SECTION, THE BOARD SHALL RECOMMEND AND THE STATE BOARD SHALL APPROVE FINANCIAL ASSISTANCE FOR A PUBLIC SCHOOL FACILITY CAPITAL CONSTRUCTION PROJECT ONLY IF THE APPLICANT PROVIDES MATCHING MONEYS IN AN AMOUNT EQUAL TO A PERCENTAGE OF THE TOTAL FINANCING FOR THE PROJECT DETERMINED BY THE BOARD AFTER CONSIDERATION OF THE APPLICANT'S FINANCIAL CAPACITY, AS DETERMINED BY THE FOLLOWING FACTORS: (a) WITH RESPECT TO A SCHOOL DISTRICT'S APPLICATION FOR FINANCIAL ASSISTANCE: (I) THE SCHOOL DISTRICT'S ASSESSED VALUE PER PUPIL RELATIVE TO PAGE 23-HOUSE BILL

24 THE STATE AVERAGE; (II) THE SCHOOL DISTRICT'S MEDIAN HOUSEHOLD INCOME RELATIVE TO THE STATE AVERAGE; (III) THE SCHOOL DISTRICT'S BOND REDEMPTION FUND MILL LEVY RELATIVE TO THE STATEWIDE AVERAGE; (IV) THE PERCENTAGE OF PUPILS ENROLLED IN THE SCHOOL DISTRICT WHO ARE ELIGIBLE FOR FREE OR REDUCED-COST LUNCH; AND (V) THE AMOUNT OF EFFORT PUT FORTH BY THE SCHOOL DISTRICT TO OBTAIN VOTER APPROVAL FOR A BALLOT QUESTION FOR BONDED INDEBTEDNESS, INCLUDING BUT NOT LIMITED TO A BALLOT QUESTION FOR ENTRY BY THE DISTRICT INTO A SUBLEASE-PURCHASE AGREEMENT OF THE TYPE THAT CONSTITUTES AN INDEBTEDNESS OF THE DISTRICT PURSUANT TO SECTION , DURING THE TEN YEARS PRECEDING THE YEAR IN WHICH THE DISTRICT SUBMITTED THE APPLICATION, WHICH FACTOR MAY BE USED ONLY TO REDUCE THE PERCENTAGE OF MATCHING MONEYS REQUIRED FROM A DISTRICT THAT HAS PUT FORTH SUCH EFFORT AND NOT TO INCREASE THE AMOUNT OF MATCHING MONEYS REQUIRED FROM ANY DISTRICT; (b) WITH RESPECT TO A BOARD OF COOPERATIVE SERVICES' APPLICATION FOR FINANCIAL ASSISTANCE: (I) THE AVERAGE ASSESSED VALUE PER PUPIL OF ALL MEMBERS OF THE BOARD OF COOPERATIVE SERVICES PARTICIPATING IN THE CAPITAL CONSTRUCTION PROJECT RELATIVE TO THE STATE AVERAGE; (II) THE AVERAGE MEDIAN HOUSEHOLD INCOME OF ALL MEMBERS OF THE BOARD OF COOPERATIVE SERVICES PARTICIPATING IN THE CAPITAL CONSTRUCTION PROJECT RELATIVE TO THE STATE AVERAGE; (III) THE AVERAGE BOND REDEMPTION FUND MILL LEVY OF ALL MEMBERS OF THE BOARD OF COOPERATIVE SERVICES PARTICIPATING IN THE CAPITAL CONSTRUCTION PROJECT RELATIVE TO THE STATEWIDE AVERAGE; (IV) THE PERCENTAGE OF PUPILS ENROLLED IN THE MEMBER SCHOOLS WITHIN THE BOARD OF COOPERATIVE SERVICES THAT ARE PARTICIPATING IN THE CAPITAL CONSTRUCTION PROJECT WHO ARE ELIGIBLE PAGE 24-HOUSE BILL

25 FOR FREE OR REDUCED-COST LUNCH; AND (V) THE AMOUNT OF EFFORT PUT FORTH BY THE MEMBERS OF THE BOARD OF COOPERATIVE SERVICES TO OBTAIN VOTER APPROVAL FOR A BALLOT QUESTION FOR BONDED INDEBTEDNESS, INCLUDING BUT NOT LIMITED TO A BALLOT QUESTION FOR ENTRY BY ANY MEMBER INTO A SUBLEASE-PURCHASE AGREEMENT OF THE TYPE THAT CONSTITUTES AN INDEBTEDNESS OF THE MEMBER PURSUANT TO SECTION , DURING THE TEN YEARS PRECEDING THE YEAR IN WHICH THE BOARD OF COOPERATIVE SERVICES SUBMITTED THE APPLICATION, WHICH FACTOR MAY BE USED ONLY TO REDUCE THE PERCENTAGE OF MATCHING MONEYS REQUIRED FROM A BOARD OF COOPERATIVE SERVICES WHOSE MEMBERS, OR ANY OF THEM, HAVE PUT FORTH SUCH EFFORT AND NOT TO INCREASE THE AMOUNT OF MATCHING MONEYS REQUIRED FROM ANY BOARD OF COOPERATIVE SERVICES; (c) WITH RESPECT TO A CHARTER SCHOOL'S APPLICATION FOR FINANCIAL ASSISTANCE: (I) THE AMOUNT OF PER PUPIL OPERATING REVENUE THAT THE CHARTER SCHOOL HAS BUDGETED TO EXPEND IN ORDER TO MEET ITS FACILITIES OBLIGATIONS DURING THE FISCAL YEAR FOR WHICH AN APPLICATION IS MADE RELATIVE TO OTHER CHARTER SCHOOLS IN THE STATE, MEASURED BOTH IN TERMS OF TOTAL DOLLARS AND AS A PERCENTAGE OF THE CHARTER SCHOOL'S TOTAL PER PUPIL OPERATING REVENUE; (II) THE PER PUPIL REVENUE RECEIVED BY THE CHARTER SCHOOL FROM THE STATE THAT IS REQUIRED BY LAW TO BE CREDITED TO A CAPITAL CONSTRUCTION RESERVE; (III) THE PER PUPIL REVENUE RECEIVED BY THE CHARTER SCHOOL FROM THE STATE EDUCATION FUND FOR CAPITAL CONSTRUCTION PURSUANT TO SECTION ; (IV) THE PERCENTAGE OF CHILDREN ENROLLED IN THE CHARTER SCHOOL WHO ARE ELIGIBLE FOR THE FEDERAL FREE AND REDUCED LUNCH PROGRAM; AND (V) THE AMOUNT OF EFFORT PUT FORTH BY THE CHARTER SCHOOL DURING THE TEN YEARS PRECEDING THE YEAR IN WHICH THE CHARTER PAGE 25-HOUSE BILL

26 SCHOOL SUBMITTED THE APPLICATION TO MEET ITS FACILITIES NEEDS BY ACCESSING VACANT SCHOOL DISTRICT FACILITIES OR OBTAINING FUNDING FOR CAPITAL CONSTRUCTION BY HAVING THE COLORADO EDUCATIONAL AND CULTURAL FACILITIES AUTHORITY CREATED AND EXISTING PURSUANT TO SECTION (1) (a), C.R.S, ISSUE BONDS ON ITS BEHALF, SEEKING VOTER APPROVAL OF A BALLOT QUESTION FOR BONDED INDEBTEDNESS OR FOR A SPECIAL MILL LEVY AUTHORIZED BY SECTION , OR SEEKING INCLUSION OF ITS CAPITAL CONSTRUCTION NEEDS IN A SCHOOL DISTRICT'S BALLOT QUESTION SEEKING VOTER APPROVAL FOR BONDED INDEBTEDNESS, WHICH FACTOR MAY BE USED ONLY TO REDUCE THE PERCENTAGE OF MATCHING MONEYS REQUIRED FROM A CHARTER SCHOOL THAT HAS PUT FORTH SUCH EFFORT AND NOT TO INCREASE THE AMOUNT OF MATCHING MONEYS REQUIRED FROM ANY CHARTER SCHOOL. (10) (a) A SCHOOL DISTRICT SHALL NOT BE REQUIRED TO PROVIDE ANY AMOUNT OF MATCHING MONEYS IN EXCESS OF THE DIFFERENCE BETWEEN THE SCHOOL DISTRICT'S LIMIT OF BONDED INDEBTEDNESS, AS CALCULATED PURSUANT TO SECTION , AND THE TOTAL AMOUNT OF OUTSTANDING BONDED INDEBTEDNESS ALREADY INCURRED BY THE SCHOOL DISTRICT. (b) AN APPLICANT MAY APPLY TO THE BOARD FOR A WAIVER OR REDUCTION OF THE MATCHING MONEYS REQUIREMENT SPECIFIED IN SUBSECTION (9) OF THIS SECTION. THE BOARD MAY GRANT A WAIVER OR REDUCTION IF IT DETERMINES THAT THE WAIVER OR REDUCTION WOULD SIGNIFICANTLY ENHANCE EDUCATIONAL OPPORTUNITY AND QUALITY WITHIN A SCHOOL DISTRICT, BOARD OF COOPERATIVE SERVICES, OR APPLICANT SCHOOL, THAT THE COST OF COMPLYING WITH THE MATCHING MONEYS REQUIREMENT WOULD SIGNIFICANTLY LIMIT EDUCATIONAL OPPORTUNITIES WITHIN A SCHOOL DISTRICT, BOARD OF COOPERATIVE SERVICES, OR APPLICANT SCHOOL, OR THAT EXTENUATING CIRCUMSTANCES DEEMED SIGNIFICANT BY THE BOARD MAKE A WAIVER APPROPRIATE. (c) THE AMOUNT OF BONDED INDEBTEDNESS THAT A SCHOOL DISTRICT THAT IS A MEMBER OF A BOARD OF COOPERATIVE SERVICES INCURS IN ORDER TO PROVIDE MATCHING MONEYS FOR THE BOARD OF COOPERATIVE SERVICES SHALL NOT CONSTITUTE BONDED INDEBTEDNESS OF THE SCHOOL DISTRICT SUBJECT TO THE LIMITS ON BONDED INDEBTEDNESS SPECIFIED IN SECTION PAGE 26-HOUSE BILL