CHAPTER 254

FORMERLY

HOUSE BILL NO. 400

AS AMENDED BY

HOUSE AMENDMENT NO. 1

AN ACT TO AMEND THE FISCAL YEAR 2006 BOND AND CAPITAL IMPROVEMENTS ACT; AMENDING TITLE 29 OF THE DELAWARE CODE RELATING TO BOND PREMIUM; AND AMENDING THE LAWS OF DELAWARE.

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

Section 1. Amend 29 Del C. §7414 (a) (2) by inserting after the word “State” the words “,or debt service on any debt or other obligation of an instrumentality of the State”

Section 2. Full Day Kindergarten. Amend 75 Del. Laws, c. 98, §147 (a) by inserting on line 4 after the word “kindergarten” the words “or certify their ability to use existing local funding for full day kindergarten.” Further amend 75 Del. Laws, c. 98, §147 (a) by inserting on line 5 after the words “Equalization Funds” the words “, Voluntary Assessment Funds”.

Section 3. School Construction Market Pressure – House Bill No. 302. Amend 75 Del. Laws, c. 90, §3 by inserting after the words “Minor Capital Improvement Funds” the words “,Voluntary Assessment Funds,”. Further amend 75 Del. Laws, c. 90, §3 by adding a new sentence at the end of said subsection to read as follows:

“Vocational-technical school districts may also elect to finance the local match in accordance with 14 Del. C, c. 21 upon affirmative vote of the local school board for such purpose.”

Section 4. School Construction Market Pressure – House Bill No. 338. Amend 75 Del. Laws, c. 230, §11(c) by inserting after the words “Minor Capital Improvement Funds” the words “,Voluntary Assessment Funds,”. Further amend 75 Del. Laws, c. 90, §11(c) by adding a new sentence at the end of said subsection to read as follows:

“Vocational-technical school districts may also elect to finance the local match in accordance with 14 Del. C, c. 21 upon affirmative vote of the local school board for such purpose.”

Section 5. School Construction Market Pressure. Pursuant to House Bill No. 302 and House Bill No. 338 of the 143rd General Assembly appropriating School Construction Market Pressure Funds, in addition to the matching provisions provided for therein, school districts may elect either or both of the following provisions to satisfy the local match requirement:

(a) Establish a matching repayment plan effective for Fiscal Year 2007 using Equalization, Minor Capital Improvement and/or Voluntary Assessment Funds. Each district shall submit a repayment plan, for approval, to the Office of Management and Budget and the Office of the Controller General no later than June 1, 2006. In no case shall any approved repayment plan exceed five years.

(b) Reorganized school districts may elect to finance the local match in accordance with the provisions of 14 Del. C., c. 21 upon passage of a successful referendum for such purpose. If a school district elects this option, said referendum shall occur no later than May 1, 2007. If said referendum is not passed by such date, then the district shall be required to establish a matching repayment plan effective for Fiscal Year 2008 using either Equalization, Minor Capital Improvement and/or Voluntary Assessment Funds. Each district shall submit a repayment plan, for approval, to the Office of Management and Budget and the Office of the Controller General no later than June 1, 2007. In no case shall any approved repayment plan exceed five years.

Section 6. Red Clay and Christina Fiscal Year 2006 Match Tax Increases.

(1) During Fiscal Year 2006, the Red Clay and Christina School Districts increased their match tax by $0.030 and $0.01957 respectively to raise the local match for market pressure funding pursuant to House Bills No. 302 and 338 of the 143rd General Assembly. It is determined by the General Assembly that these match tax increases are contrary to the intent of the General Assembly and property tax revenues accruing from such match tax increases shall be returned to the property taxpayers of these school districts. The Red Clay and Christina School Districts shall submit a plan to the Office of Management and Budget and the Office of the Controller General, selecting from one of the following options, the means by which these funds shall be returned to district taxpayers:

(a) a tax rebate to be mailed to district taxpayers no later than June 30th, 2006; or

(b) a tax credit on the total amount due for each district taxpayer to be applied to tax bills due for the property tax year 2006-2007; or

(c) a match tax rate reduction and or current expense tax rate reduction for the property tax year 2006-2007 totaling $.030 for the Red Clay School District and $.01957 for the Christina School District.

(2) The Red Clay and Christina School Districts shall notify the Office of Management and Budget and the Office of the Controller General, no later than June 1, 2006, the method by which these tax funds shall be returned.

Section 7. If any section, part, phrase or provision of this Act or the application thereof be held invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the section, part, phrase, provision, or application directly involved in the controversy in which judgment shall have been rendered and shall not affect or impair the validity of the remainder of this Act or the application thereof.

Approved April 17,2006