AN ACT AUTHORIZING THE STATE OF DELAWARE TO BORROW MONEY TO BE USED FOR CAPITAL IMPROVEMENTS AND EXPENDITURES AND TO ISSUE BONDS AND NOTES THEREFOR AND APPROPRIATING THE MONEYS TO THE STATE BOARD OF EDUCATION.
Be it enacted by the General Assembly of the State of Delaware (three-fourths of all the Members elected to each Branch thereof concurring therein):
Section 1. There is appropriated to the State Board of Education the sum of $6,700,000, or so much thereof as shall be received from the sale of the bonds and notes hereinafter authorized, which shall be used for the purposes set forth in this Act not to exceed from State Funds for the Capital Improvement Programs 1963 through 1969 the following amounts to the designated districts:
Alexis I. duPont $336,600
Alfred I. duPont 859,200
New Castle Gunning Bedford 166,800
For those projects specified in the Capital Improvement Program 1970, the State's share shall not exceed an additional amount of $3,039,800.
Section 2. The funds appropriated by this Act may be used for school construction purposes and shall be allocated by the State Board of Education to School Districts in the State of Delaware which are entitled to allocations of moneys appropriated by the State for school construction purposes pursuant to the provisions of any Act of the General Assembly concurred in by three-fourths of all the members elected to each House appropriating moneys of the State for capital improvements to the school system of the State and authorizing the State to borrow money therefor and to issue bonds and notes in connection therewith adopted by the General Assembly prior to the approval by the Governor of this Act. Provided, however, that moneys appropriated by this Act shall not be allocated to a project on which moneys allocated under such original Act may not be expended at the date of the approval of this Act by the Governor. The State Board of Education shall allocate the sum of $6,700,000 to any or all of such School Districts as said State Board of Education shall determine based upon the increments in cost to each such School District of the school construction program for the payment of the cost of which said moneys are to be a supplement. In each case of the allocation of funds appropriated by this Act said allocation shall not exceed 60% of the increase in cost of each of such school construction programs as determined by the State Board of Education.
Section 3. Each School District, to which a portion of the funds appropriated by this Act is allocated by the State Board of Education, is authorized to issue its bonds for the purpose of raising its share of the increments to the cost of its school construction program. Such bonds may be issued by resolution of the School Board of the School District and taxes may be levied for the payment of such bonds pursuant to Chapter 21 of Title 14 Delaware Code of 1953. The Certificates of Necessity evidencing the allocation of funds appropriated pursuant to this Act may be issued as supplements or amendments to such original Certificates of Necessity issued with regard to the particular school construction program whether or not a successful referendum on the issuance of bonds for the original local share has been held. Such bonds may be issued notwithstanding that the cost of construction represented thereby has not been included in a School Construction Bond Authorization Act as such term is defined in Chapter 75, Title 29, Delaware Code of 1953. However, said increase in the local share must be approved by the Board of Education of the affected school district and said Board must also determine that such increase is necessary to the school construction program before said increase is provided. In the event that such local Board of Education fails to make such determination and to approve such increased local share, the local share as set forth in the original School Construction Bond Authorization Act shall apply.
Section 4. Any of the funds appropriated herein remaining unexpended at the end of any fiscal year shall not revert to the General Fund, but shall remain to be used for the purposes set forth in this Act.
Section 5. The said sum of $6,700,000 shall be borrowed by the issuance of bonds and bond anticipation notes upon the full faith and credit of the State of Delaware. Such bonds and notes shall be issued in accordance with the provisions of Chapter 74, Title 29, Delaware Code, and Chapter 75, Title 29, Delaware Code, where applicable. For purposes of identification, the bonds issued pursuant to this authorization Act may be known, styled or referred to as "Capital Improvement Bonds of 1970".
Section 6. There is appropriated from the General Fund of the State such sums as may be necessary for the expenses incident to the issuance of the bonds and notes herein authorized, and such further sums as may be necessary to pay any interest which becomes due on such bonds and notes during the current fiscal year and such further sums as may be necessary for the repayment of the principal of any of the said bonds which become due during the current fiscal year. Vouchers for the payment of the expenses incident to the issuance of bonds and notes and for the interest and repayment of said notes shall be signed by the Secretary of State by and with the approval of the Issuing Officers. Any moneys received from the premium and accrued interest on the sale of said bonds shall be deposited to the credit of the General Fund.
Section 7. The Budget Appropriation Bill which shall be enacted and approved by the General Assembly for the fiscal year next following the effective date of this Act and for each subsequent fiscal year or biennium, shall contain under the Debt Service Item provisions for the payment of interest and principal maturities of the bonds (or notes which are not to be funded by the issuance of bonds) issued under the authority of this Act, and such of the revenues of the State of Delaware as are not prohibited by constitutional provisions or committed by preceding statutes for other purposes are hereby pledged for the redemption and cancellation of said bonds and payment of interest thereon.
Section 8. Any funds borrowed pursuant to this Act and remaining unexpended after the completion of the programs the costs of which are supplemented by the appropriation made by this Act and any funds borrowed pursuant to this Act and remaining unexpended because a project is not timely undertaken, shall be deposited in a special account and appropriated against future capital improvement bond requirements. Any Federal funds received as reimbursement for funds appropriated by this Act shall be deposited in a special account and applied against future capital improvement bond requirements.
Section 9. None of the moneys appropriated by this Act shall be expended before July 1, 1970. None of the moneys appropriated by this Act shall be expended unless a contract for the expenditure of such moneys is entered into as required by the original Act allocating moneys to the particular school construction program for the payment of the cost of which the funds hereby appropriated are supplemental.
Section 10. No bonds or notes shall be issued or moneys borrowed on behalf of this State, pursuant to this Act, after June 30, 1975, except as provided in Chapter 75, Title 29, Delaware Code.
Approved February 6, 1970.