CHAPTER 404

FORMERLY

HOUSE BILL NO. 517

AS AMENDED BY HOUSE AMENDMENT NO. 1 AND

SENATE AMENDMENTS NOS. 1 AND 2

AN ACT TO AMEND TITLE 14 AND TITLE 29 OF THE DELAWARE CODE RELATING TO CREDITING OF INTEREST TO LOCAL SCHOOL DISTRICT FUNDS.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend §1923 of Title 14 of the Delaware Code by striking subsection (b) thereof in its entirety and inserting in lieu thereof the following:

"(b) On or before the last day of each month, the State Treasurer shall credit the operating and debt service accounts respectively of each school district's operating and debt service funds with interest on the average balances in operating and debt service funds for the preceding month. The Interest to be paid shall be that proportionate share, during such preceeding month, of interest paid to the State as the school's average balances are to the total State's average balance. The school's average balances and the total State's average balance shall be determined by averaging, in each instance, the balances at the beginning of each month and the balances at the end of that month."

Section 2. Amend §1923 of Title 14 of the Delaware Code by striking subsection (c) thereof in its entirety and inserting in lieu thereof the following:

"(a) On or before the last day of each month, the State Treasurer shall credit the debt service account of each local school district's construction fund with Interest on the average balance of that proportion of the construction account contributed by the local district. The interest to be paid will be that proportionate share of interest paid to the State as the school's average balances of the proportion of construction accounts are to the total State's average balance. The school's average balance and the total State's average balance shall be determined by averaging, in each instance, the balances at the beginning of each month and the balance at the end of that month."

Section 3. Amend §7514 of Title 29 of the Delaware Code by striking subsection (2) thereof in its entirety and inserting in lieu thereof the following:

"(2) On or before the last day of each month, the State Treasurer shall credit the operating and debt service accounts respectively of each school district's operating and debt service funds with interest on the average balances in operating and debt service funds for the preceeding month. The interest to be paid shall be that proportionate share, during such preceeding month, of Interest paid to the State as the school's average balances are to the total State's average balance. The school's average balances and the total States's average balance shall be determined by averaging, in each instance, the balances at the beginning of each month and the balances at the end of that month."

Section 4. Amend §7514 of Title 29 of the Delaware Code by striking subsection (3) thereof in its entirety and Inserting in lieu thereof the following:

"(3) On or before the 1st day of each month, the State Treasurer shall credit the debt service account of each local school district's construction fund with interest on the average balance of that proportion of the construction account contributed by the local district. The interest to be paid will be that proportionate share of interest paid to the State as the school's average balances of the proportion of construction accounts are to the total State's average balance. The school's average balance and the total State's average balance shall be determined by averaging, in each instance, the balances at the beginning of each month and the balance at the end of that month."

Section 5. This Act shall be effective for computation of interest on balances existing during the month of June, 1983. The first crediting of interest under this Act shall be for the month of June, 1983, and shall take place on or before July 31, 1983. Prior to that time, interest shall be computed and credited according to the law as it exists prior to the adoption of this Act.

Section 6. Amend Section 1923, Title 14, Delaware Code, by striking subsection (a) thereof and by substituting in lieu thereof a new subsection (a) to read as follows:

"(a) The State Treasurer shall credit to the account of each local school district which has funds on deposit with the State Treasurer such amount of interest as determined by this section upon such funds."

Section 7. Amend Section 7514, Title 29, Delaware Code, by striking subsection (1) thereof and by substituting in lieu thereof a new subsection (1) to read as follows:

"(1) The State Treasurer shall credit to the account of each local school district which has funds on deposit with the State Treasurer such amount of interest as determined by this section upon such funds."

Section 8. No funds authorized to be transferred by this Act shall be credited to the accounts of a local school district unless and until the State Treasurer and the Director of the Delaware Development Office certify to the Secretary of Finance and the Controller General that the eligible school district has repaid to the Advance Planning and Real Property Funds all loans for the local share of school projects previously authorized by the Budget Commission.

In the event that said loans remain outstanding, the State Treasurer shall withhold payments to the eligible school district and shall credit all interest earned by all local funds of that district to the appropriate loan balances within the aforementioned Funds until such time as any outstanding loans from the State have been fully repaid.

Approved July 21, 1982.