HB 0011A

1
A bill to be entitled
2An act relating to the restoration of educational
3facilities damaged by hurricanes in 2004; creating the
4Educational Facilities Hurricane Restoration Cash Flow Loan
5Program for the purpose of assisting district school boards
6in making timely payments in restoring educational
7facilities; providing eligibility requirements for
8receiving a cash flow loan; requiring the Department of
9Education to administer the loan program and distribute
10loan funds; requiring the Department of Community Affairs
11to notify the Department of Education when certain federal
12payments have been distributed; providing an appropriation;
13providing an effective date.
14
15     WHEREAS, educational facilities in this state experienced
16widespread damage as a result of hurricanes during 2004, and
17     WHEREAS, anticipated funds from insurance settlements and
18federal disaster assistance payments are expected to cover most
19of the cost of restoring affected educational facilities, and
20     WHEREAS, damaged educational facilities must be restored to
21safe and satisfactory use as soon as possible, and
22     WHEREAS, due to the widespread nature of the damage,
23additional time is required to complete damage assessments,
24settle insurance claims, and determine the amount of federal
25disaster assistance payments, and
26     WHEREAS, some school districts have experienced much
27greater damage than others, and
28     WHEREAS, the Legislature determines that it is in the best
29interest of the state to establish a loan program to expedite
30the reconstruction of public educational facilities while
31insurance settlements and federal disaster assistance payments
32are being processed, NOW, THEREFORE,
33
34Be It Enacted by the Legislature of the State of Florida:
35
36     Section 1.  There is established for the 2004-2005 fiscal
37year an Educational Facilities Hurricane Restoration Cash Flow
38Loan Program. District school boards that need assistance with
39cash flow in order to make timely payments to contractors and
40suppliers in restoring educational facilities damaged by a
41hurricane or tropical storm during the 2004 hurricane season may
42apply to the Department of Education for a cash flow loan. The
43amount of the loan may not exceed the amount the district needs
44to meet timely payments to contractors and suppliers for the
45restoration of damaged facilities. To be eligible for a cash
46flow loan, a district school board must meet the following
47requirements:
48     (1)  Have one or more educational facilities damaged or
49destroyed by a named hurricane or tropical storm during the 2004
50hurricane season;
51     (2)  Have an agreement to pay contractors or suppliers for
52the restoration of the damaged facilities, but have insufficient
53cash flow to make timely payments;
54     (3)  Agree to repay, from funds received from insurance
55claims, Federal Emergency Management Agency payments, or other
56fund sources, the full amount of the funds received from the
57cash flow loan; and
58     (4)  Agree that if repayment is not made in a timely
59manner, the Department of Education shall withhold future
60distribution of public education capital outlay funds, or other
61fixed capital outlay funds, until repayment is received by the
62department.
63     Section 2.  The Department of Education shall provide
64information and instructions for applying for a cash flow loan
65and administer the loans in accordance with this act. The
66department shall distribute loan funds based on the district
67superintendent's certification of the amount needed for payments
68that are due during the following 30 days. All funds repaid
69shall be deposited unallocated into the General Revenue Fund
70within 30 days after receipt by the department.
71     Section 3.  The Department of Community Affairs shall
72notify the Department of Education when payments from the
73Federal Emergency Management Agency for the 2004 storms have
74been distributed to a district school board that has received an
75educational facilities hurricane restoration cash flow loan.
76     Section 4.  The sum of $100 million is appropriated from
77nonrecurring revenues in the General Revenue Fund to the
78Department of Education for the 2004-2005 fiscal year for the
79sole purpose of making educational facilities hurricane
80restoration cash flow loans to eligible district school boards
81in accordance with the provisions of this act.
82     Section 5.  This act shall take effect upon becoming a law.


CODING: Words stricken are deletions; words underlined are additions.