1. Notwithstanding the powers and duties of school boards provided by law, the superintendent of public instruction shall approve the construction, purchase, repair, improvement, modernization, or renovation of any public school building or facility before commencement of the project if the cost of the project, as estimated by the school board, is in excess of one hundred fifty thousand dollars. 2. The superintendent of public instruction may not approve a project unless the school district proposing the project: a. Demonstrates the need for the project and the educational utility of the project or demonstrates potential utilization of the project by a future reorganized school district; b. (1) Demonstrates that the student population has been stable or has increased during the preceding five school years and is expected to be stable or to increase during the ensuing five school years; or (2) Demonstrates by clear and convincing evidence that, despite a declining student population, there are no feasible alternatives to the proposed project; and c. Demonstrates the capacity to pay for the project under rules adopted by the superintendent of public instruction pursuant to chapter 28-32. 3. a. If the superintendent of public instruction denies the project, the school board may appeal the superintendent's decision to the state board of public school education. In considering the appeal, the state board shall review: (1) The need for the project; (2) The educational utility of the project; (3) The potential use of the project by a future reorganized school district; (4) The capacity of the district to pay for the project; and (5) Any other objective factors relative to the appeal. b. The decision of the state board is final. 4. This section is applicable to any construction, purchase, repair, improvement, renovation, or modernization. 5. For purposes of this chapter, "facility" includes a public school parking lot, public school athletic complex, or any other improvement to real property owned by the school district.
15.1-36-02. Coal development trust fund - Board of university and school lands - School construction projects - Unanticipated construction projects and emergency repairs - Loans. 1. Up to sixty million dollars from the coal development trust fund is available to the board of university and school lands for loans under this section. 2. To be eligible for a loan under this section, the school district must demonstrate a need based on an unanticipated construction project, an unanticipated replacement project, an emergency repair, or a legislatively defined condition, and the board of a school district shall: a. Obtain the approval of the superintendent of public instruction for the construction project under section 15.1-36-01; and b. Submit to the superintendent of public instruction an application containing all information deemed necessary by the superintendent, including potential alternative sources or methods of financing the construction project. 3. The superintendent of public instruction shall consider each loan application in the order the application received approval under section 15.1-36-01. 4. If the superintendent of public instruction approves the loan, the board of university and school lands shall issue a loan from the coal development trust fund. a. For a loan made under this subsection:
(1) Except for loans provided for a school construction project on an air force base, the minimum loan amount is two hundred fifty thousand dollars and the maximum loan amount for which a school district may qualify is five million dollars; (2) The term of the loan is twenty years, unless the board of the school district requests a shorter term in the written loan application; and (3) The interest rate of the loan may not exceed two percent per year. b. During the 2025-27 biennium, a loan for a school construction project on an air force base is an allowable condition under subsection 2. For a loan made for a school construction project on an air force base under this subsection: (1) The maximum loan amount for which the school district may qualify is the lesser of twenty percent of the project cost or twenty million dollars; (2) The term of the loan is twenty years, unless the board of the school district requests a shorter term in the written loan application; (3) The interest rate of the loan may not exceed two percent per year; and (4) The school district must obtain all necessary federal authorizations and funding commitments for the project. 5. a. If a school district seeking a loan under this section received an allocation of the oil and gas gross production tax during the previous fiscal year in accordance with chapter 57-51, the board of the district shall provide to the board of university and school lands, and to the state treasurer, its evidence of indebtedness indicating the loan originated under this section. b. If the evidence of indebtedness is payable solely from the school district's allocation of the oil and gas gross production tax in accordance with section 57-51-15, the loan does not constitute a general obligation of the school district and may not be considered a debt of the district. c. If a loan made to a school district is payable solely from the district's allocation of the oil and gas gross production tax in accordance with section 57-51-15, the terms of the loan must require the state treasurer withhold the dollar amount or percentage specified in the loan agreement, from each of the district's oil and gas gross production tax allocations, in order to repay the principal and interest of the evidence of indebtedness. The state treasurer shall deposit the amount withheld into the fund from which the loan originated. d. Any evidence of indebtedness executed by the board of a school district under this subsection is a negotiable instrument and not subject to taxation by the state or any political subdivision of the state. 6. For purposes of this section, a "construction project" means the purchase, lease, erection, or improvement of any structure or facility by a school board, provided the acquisition or activity is within a school board's authority.