Delaware General Assembly

CHAPTER 285

CREATING SCHOOL BUILDING PROGRAM BOARD AND AUTHORIZING THE STATE OF DELAWARE TO BORROW $13,711,273.00 AND ISSUE BONDS THEREFOR

AN ACT APPROPRIATING CERTAIN MONEY TO THE STATE BOARD OF EDUCATION FOR USE BY SAID BOARD AND FOR REALLOCATION TO CERTAIN SCHOOL DISTRICTS FOR THE PURCHASE AND CONSTRUCTION OF NEW AND IMPROVED SCHOOL BUILDINGS, AND/OR ADDITIONS OR ALTERATIONS TO PRESENT SCHOOL BUILDINGS; PROVIDING FOR A BOND ISSUE FOR THE PAYMENT THEREOF; PROVIDING THAT THE PROCEEDS OF THE SALE OF SAID BONDS SHALL BE RETAINED BY THE AUDITOR OF ACCOUNTS IN SEPARATE FUNDS; AND PROVIDING FOR THE CREATION OF A SCHOOL BUILDING PROGRAM BOARD, ITS POWERS AND DUTIES.

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

WHEREAS, certain School Districts of the State of Delaware hereinafter mentioned have funds available for school construction purposes presently available by reason of state appropriation and 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, due to the present high costs of construction, funds on hand for school construction purposes are not sufficient in many cases to pay for the cost of construction of required new school construction; but

WHEREAS, a survey has been made of the entire public school system of the State of Delaware, which, inter alia, recommends the consolidation of many existing school districts; and

WHEREAS, a program of consolidation of such districts may alter the building requirements of certain school districts; and

WHEREAS, under existing conditions, it may or may not be desirable to continue existing construction programs in the several school districts; NOW, THEREFORE,

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

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

(a) The term "school construction" means the purchase or construction of new buildings used for school purposes within any school district, and/or the addition or alteration of any present school building, grounds and equipment within any school district.

(b) The term "total cost" means the maximum sum or sums of money which may be spent for school construction, provided 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.

(c) The term "state share" means the maximum sum of money which may be paid from state sources to any school district for school construction as provided in this act.

(d) The term "local share" means the sum of money specified to render permissable the use of the state share for school construction within the particular school district.

(e) The term "school district" means the Boards of School Trustees of the several school districts, the Boards of Education of the several Special School Districts, and the Board of Public Education in the City of Wilmington.

(f) The term "School Building Program Board" means the Board, the membership of which is provided for in Section 13 of this Act.

Section 2. That there is hereby appropriated to the State Board of Education the sum of Thirteen Million Seven Hundred Eleven Thousand Two Hundred Seventy-three ($13,711,273.00) Dollars, or so much thereof as shall be required, to carry out the purposes of this Act.

Section 3. That the Governor and the State Treasurer and the Secretary of State of the State of Delaware, herein sometimes referred to as the "issuing officers," are hereby authorized, fully empowered and directed, subject to the provisions contained in this Act, to borrow upon the faith and credit of the State of Delaware a sum of money not in excess of Thirteen Million Seven Hundred Eleven Thousand Two Hundred Seventy-three Dollars ($13,711,273.00), or so much thereof as shall be necessary to be used to carry out the provisions of this Act, and to issue bonds of the State of Delaware in a total sum not in excess of Thirteen Million Seven Hundred Eleven Thousand Two Hundred Seventy-three Dollars ($13,711,273.00). The said bonds may be issued at one time or from time to time, and in such series and amounts as the issuing officers shall determine to be required, subject to the provisions contained in this Act.

Section 4. That the said bonds, issued in accordance with the provisions of this Act, shall be a direct general obligation of the State, and the public faith and credit of the State is hereby expressly pledged for the full and complete payment of the debt, principal and interest. The principal and interest of the said bonds shall be exempt from taxation by the State or by any political subdivision thereof, for any purpose whatsoever.

Section 5. That the said bonds shall be signed in the name of the State of Delaware by the Governor, the Secretary of State, and the State Treasurer, and shall have the great seal of the State of Delaware impressed thereon. The signatures of the Governor and the Secretary of State may be engraved or printed on such bonds, but the signature of the State Treasurer shall be in his own proper handwriting. Attached interest coupons shall be authenticated by the signature or facsimile signature of the State Treasurer. The said bonds may be issued notwithstanding that any of the officers signing them or whose facsimile signature appears on the coupons shall have ceased to hold office at the time of such issue or at the time of the delivery of said bonds.

Section 6. That the said bonds shall recite that they are issued for the purposes set forth in this Act, and that they are issued in pursuance of this Act and the constitution of this State, and such recital shall be conclusive evidence of the authority of the State to issue said bonds and of their validity. Any such bonds 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.

Section 7. That the said bonds shall be in such form and in such denomination 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 the said "issuing officers."

Section 8. That the said bonds shall bear interest payable semi-annually at a rate of interest not exceeding four per centum (4%) per annum.

Section 9. That 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 twenty (20) years from the date of issue thereof.

Section 10. That all money received from the sale of the said bonds, or any series thereof, authorized under the provisions of this Act, shall be deposited by the State Treasurer in the Farmer's Bank of the State of Delaware, at Dover, and shall be used exclusively for the purposes set forth in this Act, and according to the allocation set forth in this Act, and according to the allocation set forth in Section 12 of this Act, or so much of said allocation as shall have been determined necessary to be used to carry out the purposes of this Act, and for the purpose of paying the costs and expenses incident to the issuance of said bonds.

That the state share, or so much thereof as shall have been reallocated as hereinafter provided in this Act, shall be made available only on the condition that the local share, or so much thereof as shall have been reallocated as hereinafter provided in this Act, be deposited with the State Treasurer on or before June 30, 1951.

That any school district entitled under the provisions of this Act to participate in the allocation of a state share, is hereby authorized to issue bonds in the amount of the local share, or so much thereof as shall have been reallocated as hereinafter provided in this Act, provided such bonds are authorized by a referendum vote according to the provisions of Chapter 71 of the revised code of Delaware, 1935, as amended; Provided, however, that the amount of the local share to be raised by the Board of Public Education in Wilmington may be obtained by issuing bonds in the manner prescribed in Chapter 163, Volume 32, Laws of Delaware.

Section 13. That the Governor of the State of Delaware, the Secretary of State of the State of Delaware, and the President of the State Board of Education, shall be and constitute the School Building Program Board.

Section 14. That the said School Building Program Board is hereby authorized and directed to consider the plans, costs, and specifications of any school construction program proposed or pending in the several school districts mentioned in this Act, with full power to alter, amend, reduce, lessen or disapprove any such school construction program, provided that nothing herein shall be construed to give said School Building Program Board the authority to expand or change any school construction 'program so as to increase the total state share of such program beyond the maximum limit set forth in Section 12 of this Act.

Section 15. That the said School Building Program Board 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 districts, 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 retardation of the school district. In making a determination of necessity, the said School Building Program Board shall do so on a basis calculated to maintain the desired standard of education within the school district. In making such determination of necessity, the School Building Program Board shall have the authority to make a determination of necessity of a school construction program for the several school districts which will have a lesser total cost than the maximum total cost for such school district than that set forth in Section 12 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 12 of this Act, the state share and local share shall be reduced in the proportion they bear to the total maximum cost set forth in said section.

For the purposes of this Act, the provisions of Section 7 of Chapter 79, Volume 43, Laws of Delaware, 1941, and especially the "Basic Table" therein set forth for the determination of state and local shares for any school building program, are hereby repealed.

Section 16. That whenever the School Building Program Board 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. Upon the receipt of such a certification by the State Treasurer, 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, and the issuing officers shall proceed to issue bonds to provide the funds for the State share thereof.

Section 17. That, in the event two or more existing school districts shall consolidate themselves or be consolidated into one school district, 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 12 of this Act for the school districts so consolidating.

Section 18. That moneys paid to the State Treasurer from the sale of state bonds, as authorized by this Act, as the state share of the school construction program of a particular school district, and the moneys paid to the State Treasurer by said school district as the local share of said school construction program, shall be deposited by the State Treasurer in the Farmer's Bank of the State of Delaware and shall be retained by the Auditor of Accounts in a separate fund for each district and shall be devoted to the cost of the school construction program of such district.

Section 19. That moneys hereby appropriated and retained in separate funds as provided herein for use in defraying the cost of any school construction program, shall not revert to the State Treasury at the end of any fiscal year, but shall remain available for the purpose stated herein until the school construction has been completed.

Section 20. For the purpose of proposing plans for a school construction program in any school district, and for the purposes of the creation, powers and duties of a School Building Commission for the school construction program in any school district, the provisions of Chapter 206, Volume 36, Laws of Delaware, 1929, shall have full force and effect, insofar as its provisions are not in conflict with this Act, provided that any conflict which may arise shall be submitted to and resolved by the decision of the Governor; and provided further that membership upon any school building commission which is provided for by election in said Chapter 206, Volume 36, shall be deemed amended to authorize the Governor to appoint three members and to authorize the designation of two members from among and by the members of the State Board of Education.

Section 21. All Acts or parts of Acts inconsistent with the provisions of this Act are hereby repealed to the extent of such inconsistency.

Approved June 16, 1949