Delaware General Assembly

CHAPTER 331

AN ACT TO PROVIDE FOR THE ENLARGEMENT AND IMPROVEMENT OF THE SYSTEM OF FREE PUBLIC SCHOOLS OF DELAWARE; APPROPRIATING MONEY FOR SAID PURPOSE; AUTHORIZING THE FINANCING OF SUCH ENLARGEMENT AND IMPROVEMENT BY THE ISSUANCE OF BONDS AND BOND ANTICIPATION NOTES OF THE STATE AND BY CONTRIBUTIONS FROM CERTAIN SCHOOL DISTRICTS, AND THE CITY OF WILMINGTON, DEFINING SCHOOL DISTRICTS; AUTHORIZING THE ISSUANCE OF BONDS OF CERTAIN SCHOOL DISTRICTS AND THE CITY OF WILMINGTON FOR THE PURPOSE OF RAISING MONEY TO MAKE SUCH CONTRIBUTIONS; AND AUTHORIZING THE ACCEPTANCE OF FEDERAL FUNDS FOR BUILDING PURPOSES AND CREATING LOCAL SCHOOL BUILDING COMMISSIONS.

WHEREAS, there is continued and pressing need for certain construction for public school purposes in certain School Districts within the State of Delaware; AND

WHEREAS, there are additional critical needs for school facilities that have been brought about by the phenomenal growth of enrollments in the public schools of the State; AND

WHEREAS, certain School Districts of the State hereinafter mentioned have funds available for school construction purposes presently available by reason of State appropriation and/or from the proceeds of local school bond issues; AND

WHEREAS, certain other School Districts hereinafter mentioned will provide funds for school construction purposes from local sources; AND

WHEREAS, there is precedent of both partial and full State support of school construction programs as an element which places Delaware as a leader in education, NOW THEREFORE,

Be it enacted by the General Assembly of the State of Delaware (three-fourths of all the Members elected to each Branch concurring therein):

Section 1. Whenever used in this Act, unless a different meaning is indicated or required:

"School construction" shall include, but not be limited to, the acquisition, construction, reconstruction, alteration, remodeling or enlargement of school buildings, the acquisition or installation of apparatus or equipment or educational supplies suitable for the use of such buildings, the acquisition of machinery necessary for the maintenance of such buildings or school grounds, the acquisition of land required as sites for such buildings, or for playgrounds, including land or rights in land needed to provide access to such sites and to provide suitable playgrounds, and the grading or other improvement of such sites, land or rights in land, including the construction of any sewers or water mains needed to connect such buildings to any publicly owned sewer system or water system, the acquisition of temporary buildings or facilities for school purposes to be used until such time as permanent school buildings or facilities shall become available. The cost of such school construction shall not include any expenses in connection with the holding of any referendum for such school construction.

The disposition of any temporary school buildings or facilities acquired under this Act shall be in accordance with the law and any rules and regulations of the State Board of Education, except that such funds resulting from the disposition of any temporary school buildings or facilities shall be deposited to the account of the school construction funds of the school district.

"Total cost" means the maximum sum or sums of money which may be spent for school construction under this Act in a particular school district, provided that nothing contained in this Act shall prevent any school district from increasing said total cost by providing a larger amount from local sources than that stated as that district's local share, nor prevent the acceptance and use of any funds appropriated by the Congress of the United States for these purposes.

"State share" means that maximum sum of money which may be paid from State sources for school construction in a particular school district as provided in this Act.

"Local share" means the sum of money specified to render permissible the use of the State share for school construction within the particular school district.

"School district" means a school district, a special school district, the City of Wilmington, or any newly created school unit or area for which no board has yet been appointed or elected, or any area which the State Board of Education shall determine to be the area served by any school facility which is referred to in Section 13 of this Act, and for which said Section specified no local share.

"School Building Commission" means one of the School Building Commissions created by Section 23 of this Act.

Section 2. There is hereby appropriated the sum of eight million one hundred and seventy-eight thousand three hundred dollars ($8,178,300), or so much thereof as shall be required to carry out the purposes of this Act, to be expended as hereinafter provided.

Section 3. For the purposes of providing funds out of which said appropriation of eight million one hundred and seventy-eight thousand three hundred dollars ($8,178,300) may be paid, the Governor, the State Treasurer, and the Secretary of State of Delaware, herein sometimes referred to as "issuing officers", are hereby authorized and fully empowered to issue bonds of the State of Delaware in an aggregate amount not exceeding eight million one hundred and seventy-eight thousand three hundred dollars ($8,178,300),

Section 4. Said bonds shall be issued at one time or from time to time as the money is required, as the issuing officers shall determine. The bonds of each issue shall constitute a separate series. The said bonds shall mature as the issuing officers may determine; provided, however, that the principal amount of said bonds, or any series thereof shall be made to mature fully within 20 years from the date of issue thereof. Each series of bonds shall bear interest at a per annum rate approved by the issuing officers, payable semi-annually.

Section 5. Said bonds shall be sold by the issuing officers at not less than par and accrued interest, under such terms, conditions and regulations as the issuing officers may prescribe, after notice of such sale published at least once ten days or more before the date of sale in at least one newspaper published in the State of Delaware and in a financial journal published in the City of New York.

Section 6. In anticipation of the issuance of said bonds, the issuing officers may issue and sell notes of the State of Delaware at either public or private sale for not less than par and accrued interest. Said notes may be renewed from time to time by the issuance and sale of new notes. Said notes shall bear interest at a rate not exceeding three per cent per annum. All such notes shall mature and be paid not later than one year from date of issuance. The total amount of said notes outstanding at any one time, together with the total amount of said bonds theretofore issued, shall not exceed eight million one hundred and seventy-eight thousand three hundred dollars ($8,178,300). Said notes may be redeemed at par and accrued interest prior to their maturity if the right of the State to do so shall have been reserved by an express provision in the notes. The principal of said notes shall be paid out of the proceeds of the sale of said bonds or notes.

Section 7. Said bonds and notes shall be direct general obligations of the State of Delaware, and the faith and credit of the State of Delaware are hereby pledged for the payment of the principal of and the interest on said bonds and notes as such principal and interest respectively become due. The principal of and the interest on said bonds and notes shall be exempt from taxation by the State of Delaware or by any political subdivision thereof for any purpose whatsoever.

Section 8. The said bonds and notes shall be signed in the name of the State of Delaware by the State Treasurer and shall be authenticated by the signatures or facsimile signatures of the Governor and Secretary of State, and they shall have a facsimile of the Great Seal of the State engraved or printed thereon. Interest coupons attached to said bonds shall be authenticated by the signature or facsimile signature of the State Treasurer. The said bonds and notes may be issued notwithstanding that any of the officers signing them or whose facsimile signatures appear thereon or on the coupons of said bonds shall have ceased to hold office at the time of such issue or at the time of the delivery of said bonds or notes.

Section 9. Said bonds and notes shall recite that they are issued in pursuance of this Act and the Constitution of this State, and such recital shall be conclusive evidence of the validity of said bonds and notes. Any such bonds or notes containing such recital shall, in any suit, action or proceeding involving their validity, be conclusively deemed to be fully authorized by this Act and to have been issued, executed and delivered in conformity herewith and shall be incontestable for any cause. Said bonds and notes shall be in such form and in such denominations and may contain such other and further recital and be subject to such terms and conditions, with such privileges as to registration, conversion, reconversion, redemption and exchange, and may contain such other provisions as may be determined by said "issuing officers". The principal of and the interest on said bonds and notes shall be made payable at the Farmers Bank of the State of Delaware at Dover.

Section 10. All moneys received from the sale of said bonds or notes shall be deposited by the State Treasurer in the Farmers Bank of the State of Delaware at Dover and shall be exclusively for the purpose of school construction in accordance with the provisions of this Act, and for the purpose of paying the principal of notes issued under this Act.

Section 11. Any funds that shall accrue to any school district in this State from the Treasury of the United States for building purposes shall be deposited in the State Treasury and shall be allocated by the State Board of Education to the school district for which the funds are appropriated. The said funds shall be in addition to any other local share and/or State share.

Section 12. There is hereby appropriated to the State Treasurer of the State of Delaware such sums as shall be necessary during the fiscal year beginning July 1, 1961, to pay interest on said bonds and notes and to pay the principal of said bonds. The Budget Appropriation Bill enacted and approved by the General Assembly at the One Hundred and Twenty-First Session, and at each and every subsequent annual session thereof, shall contain under the Debt Service item provisions for the payment of the principal of and the interest on all bonds issued under this Act as such principal and interest respectively become due; and all such revenues of the State of Delaware that are not prohibited by constitutional provisions or committed by preceding statutes for other purposes are hereby pledged for the payment of said bonds and interest thereon. For the purpose of paying the costs and expenses incident to the issuance of said bonds and notes and interest on said notes there is hereby appropriated from the General Fund of the State to the issuing officers the sum of fifty thousand dollars ($50,000.00), or so much thereof as may be necessary for said purpose. All payments for expenses incident to the issuance of said bonds and interest on notes shall be paid by the State Treasurer upon warrants signed by Secretary of State and approved by the Auditor of Accounts.

Section 13. The total maximum amount appropriated by Section 2 of this Act, the sum of eight million one hundred and seventy-eight thousand three hundred dollars ($8,178,300), or so much thereof as shall be necessary to carry out the provisions of this Act, shall be apportioned by the State Board of Education to the following named school districts according to the following tabulation of maximum totals and shares, or in the proportions represented by said maximum totals and shares.

The asterisk (o) following the name of a school in table above indicates that a local share is not required before the State share will be expended for the construction of such school.

There is also appropriated to the State Board of Education the sum of one hundred seventy-eight thousand dollars ($178,000) to cover the cost of supervisory and auditing services of the school construction enumerated in the foregoing table.

Section 14. Except in the case of a school district for which a local share is not shown by the foregoing table, the State share apportioned to a school district shall not be expended unless the local share for such school district shall have been deposited with the State Treasurer not later than two years after the effective date of this Act.

No school construction shall be started under authority of this Act later than two years after the effective date of this Act; and no moneys shall be borrowed by the State under authority of this Act later than two years after the effective date of this Act, except such moneys as are necessary to complete school construction started prior to two years after the effective date of this Act.

Section 15. No school construction shall be paid with funds appropriated by this Act or with funds for which a State share is provided by this Act if such construction does not conform with the formula for school construction established by the State Board of Education.

Section 16. Any school district which is entitled under the provisions of either Chapter 175, Volume 52, or this Act to an apportionment of a State share and which is required to provide a local share is hereby authorized to issue its bonds for the purpose of raising money to pay its local share and raising such additional amount, if any, as such school district may desire to expend for school construction. If such bonds are issued, they shall be issued by the Board of Trustees or Board of Education of the school district pursuant to the provisions of Chapter 21, Title 14, Delaware Code, except in the case of the City of Wilmington, in which case the local share to be contributed by the Board of Public Education in Wilmington may be raised by the proper authorities of said City by issuing bonds pursuant to the provisions of Chapter 163, Volume 32, Laws of Delaware, as amended. A copy of the referendum notice shall be submitted to the State Board of Education at the time when the votes are canvassed by such State Board of Education. Instead of issuing bonds as hereinbefore provided, any school district may pay its local share by using the proceeds of the sale of bonds heretofore authorized or issued, or by using gifts or any other moneys on hand which are not required by law to be used for some other purpose.

Section 17. The State Board of Education shall determine the present necessity for any school construction program in the said several school districts and, in so doing, shall take into consideration the number of pupils, actual or potential, in the school district, the feasibility and possibility of the consolidation of school district, the present and future possibility of overcrowding of school facilities within the school district, the condition and quality of existing school facilities within the district, and all other matters and conditions pertinent to the determination of the present necessity of the school construction program, including the reasonable future development or dissolution of the school district. In making such determination of necessity, the State Board of Education shall have the authority to make a determination of necessity of a school construction program for a school district which will have a lesser total cost than the maximum total cost for such school district set forth in Section 13 of this Act. Whenever a determination of necessity of a school construction program is made in an amount less than the total maximum cost for such school district as set forth in Section 13 of this Act, the State share and the local share shall be reduced in the proportions they bear to the total maximum cost set forth in that Section.

Section 18. Whenever the State Board of Education shall make a determination of necessity for a school construction program within a school district, it shall certify that fact to the State Treasurer together with the amount of the total cost, the State share, and the local share, if any, and shall send a copy of such certification to the State Auditor of Accounts, and the School Building Commission of such school district. Upon the receipt by the State Treasurer of the certification of said determination, the said school construction program shall be deemed to be authorized, and the provisions of this Act for the issuance of State and local bonds to provide the funds for school construction programs shall be in full force and effect with respect to such school construction program, provided, however, that, except in cases where a local share is not required by Section 13 of this Act, such school construction program shall not be carried out until the local share shall have been deposited with the State Treasurer as provided in Section 13. The issuing officers may at any time after the State Treasurer receives such certificate proceed to issue bonds or notes of the State to provide the funds for the State share thereof, whether or not the requisite local share shall have been actually deposited with the State Treasurer pursuant to Section 13, but the proceeds of said bonds or notes shall not be expended until the requisite local share shall have been so deposited.

Section 19. After making the certificate required by Section 18, the said State Board of Education is hereby authorized and directed to consider the preliminary and final plans, estimates of costs, and specifications of any school construction program and to approve or modify such plans, estimates and specifications, and also to amend such certificate, provided that nothing herein shall be construed to give said State Board of Education the authority to increase the total State share of such program beyond the maximum limit set forth in Section 13 of this Act. No certificate of necessity shall be amended after the date of successful local school district referendum. In the event that said certificate shall be amended as herein provided, the fact of such amendment shall be communicated to the State Treasurer, and copies thereof shall be sent to the State Auditor of Accounts and the School Building Commission of the School District.

Section 20. In the event that two or more existing school districts shall consolidate, the maximum total cost, the maximum State share, and the maximum local share of a school construction program for such consolidated district, shall be the totals of said amounts appearing in Section 13 of this Act for the school districts so consolidating, except that the construction funds shall be used only as originally authorized in the certificates of necessity issued to the original districts.

Section 21. The moneys paid to the State Treasurer by a school district, as its local share pursuant to Section 13 of this Act, shall be deposited by the State Treasurer in the Farmers Bank of the State of Delaware at Dover and shall be expended only for school construction in such district. Each of said local shares shall be credited with interest when and to the same extent as the said Bank credits interest on deposits of other State moneys in said Bank.

Section 22. Any sum of money which has been appropriated to any school district by the State of Delaware under the provisions of this Act which remains unexpended one year after pupil occupancy of any school building constructed under the provisions of this Act shall revert to the State of Delaware and shall be deposited to a special account to be applied against future school construction bond requirements. This applies to the State share only.

Any sum of money which has been appropriated by any local school district under the provisions of this Act which remains unexpended one year after pupil occupancy of any school building constructed under the provisions of this Act shall be deposited to the debt service account of the school district to be used only for purposes of retirement of school district bonds and interest thereon.

Section 23. There is hereby created a commission for each school district to be known as the "School Building Commission". The School Building Commission of each school district shall at all times be composed of the active members of the Board of Trustees or Board of Education of such school district and two members of the State Board of Education ex-officio, the latter two to be appointed by the State Board of Education, except (1) in the City of Wilmington, where the Board of Education in Wilmington shall be the School Building Commission, and except (2) in school districts which do not have Boards of Trustees or Boards of Education, where the School Building Commission shall be composed of three residents of the school district appointed by the Governor, and two members of the State Board of Education appointed by the State Board of Education. No act of a School Building Commission shall be binding unless a majority of the members exclusive of the ex-officio members, of such Commission shall concur therein.

Section 24. The State Board of Education shall render such assistance to School Building Commissions as they may request in the preparation of their preliminary and final plans for school construction under this Act.

Section 25. The final plans, specifications and estimates of costs of school construction under this Act shall be approved by the State Board of Education. No School Building Commission shall change or alter the final plans as approved without the written consent of the State Board of Education or its designated representatives.

Section 26. It shall be the province and duty of the School Building Commission for any particular district to cause the school construction program authorized under this Act for such school district to be carried out. Such School Building Commission, with consent of State Board of Education or its designated representatives, shall have power to make and enter into all contracts for school construction and for labor, materials, supplies, instrumentalities, furniture and equipment required to accomplish any such school construction program (including purchase of all educational supplies necessary for the initial operation of schools so built, altered, or added to), provided that no contract involving expenditure of five hundred dollars ($500.00) or more shall be entered into unless the same shall be properly advertised and given to the lowest and best bidder therefore, the School Building Commission reserving the right to reject any and all bids.

Section 27. The School Building Commission in each school district shall supervise, or cause to be supervised the school construction program in such school district.

Section 28. The School Building Commission of the school district shall, with the approval of the Secretary of the State Board of Education, designate a person to serve as Secretary of the said School Building Commission. Such Secretary shall be the accountant of such School Building Commission. The School Building Commission shall cause such Secretary to inaugurate and maintain a system of accounting which shall show in detail the expenditures of the School Building Commission, the cost of school construction, and such other details as the State Board of Education may from time to time require. Each School Building Commission shall have power to employ an engineer or engineers, an architect or architects, and such other employees as it shall deem essential to the proper and expeditious performance of its duties under this Act, to fix their salaries and length of service, and to dismiss them for any cause which it shall deem sufficient.

Section 29. Any School Building Commission may require a bond from any of its employees and any person contracting for school construction.

Section 30. All bills for the expenses of the School Building Commission of any School District for carrying out the school construction program of such school district under this Act, except the City of Wilmington, must be marked "approved", and such approval must be signed by the chairman or vice-chairman of such School, Building Commission and attested by the Secretary or acting Secretary of such Commission.

Section 31. The School Building Commission of each School District, shall, when and as funds are required (and not until then) for the payment of the expenses of carrying out the school construction program in such school district contemplated by this Act, including expenses of engineers, architects, and other employees of such School Building Commission, draw warrants on the State Treasurer for the moneys required, which warrants shall be signed by the chairman or vice-chairman and attested by the Secretary or acting Secretary of such School Building Commission; such warrants shall be delivered to the State Auditor of Accounts, who shall thereupon deliver them to the State Treasurer, and the State Treasurer shall pay the same.

Section 32. The carrying out of school construction programs in the City of Wilmington shall be within the exclusive jurisdiction of the Board of Public Education in Wilmington. Said Board of Public Education in Wilmington is authorized and empowered to make all contracts and to do all things necessary or proper for the purpose of carrying out such construction programs in the City of Wilmington; provided that the cost thereof to be paid under this Act shall not exceed in the aggregate the total of the State share certified by the State Board of Education pursuant to Sections 18 and 19 of this Act, and the local share deposited pursuant to Section 14 of this Act by the Board of Public Education in Wilmington; and provided further that all of the provisions of Sections 17, 18, 19 and 25 of this Act relating to school construction programs shall apply to the school construction programs in the City of Wilmington.

Section 33. The Board of Public Education in Wilmington shall keep accurate detailed accounts of the cost of all school construction in the City of Wilmington under the provisions of this Act and of all moneys expended therefor. Such accounts shall be deemed to be public records.

Section 34. Whenever lands shall be required for school construction under this Act in the City of Wilmington, the Board of Public Education in Wilmington is authorized to select and acquire such land. And whenever land shall be required for the carrying out of any school construction for any special school district outside of the City of Wilmington, the School Building Commission of such special school district is authorized to select and acquire such land. And whenever land shall be required for school construction under this Act in any other school district in this State and local School Building Commission is authorized to acquire such land upon the approval of the State Board of Education or designated representatives.

Such land may be acquired by contract with the owner or owners thereof at a fair value, or by condemnation proceedings instituted by the appropriate official body, but such condemnation proceedings shall not be instituted against any land, building, franchise, easement or other property of a public utility used by it in providing its service to the public.

The cost of such lands shall be deemed to be part of the cost of such school construction.

The title to any such lands acquired in any manner whatever shall be a fee simple title and shall be vested in the State Board of Education, except that the title to lands so acquired in the City of Wilmington or in any special school district shall be vested in the Board of Public Education in Wilmington or in the Board of Education of such special school district, as the case may be.

Section 35. Condemnation proceedings to acquire land as aforesaid in any case where such land cannot for any reason be acquired by contract with the owner or owners thereof for a fair or reasonable consideration may be instituted by the appropriate official body under the provisions of Section 2303, Title 14, Delaware Code.

Section 36. The funds appropriated and apportioned by this Act for particular school districts shall be in addition to and not in lieu of any funds which may be made available for any of the named school districts by a Supplementary School Building Program Act of 1961 or any other Act of the General Assembly.

Section 37. If any clause, sentence, Section, provision or part of this Act shall be adjudged to be unconstitutional or invalid for any reason by any Court of competent jurisdiction, such judgment shall not impair, invalidate or affect the remainder of this Act, which shall remain in full force and effect.

Section 38. This Act shall be known as the School Building Program Act of 1961.

Approved January 25, 1962.