(1) (a) There is created in the state treasury the institute charter school assistance fund, referred to in this section as the "fund", that consists of the moneys transferred to the fund from the state charter school institute fund pursuant to section 22-30.5-506 (4). The moneys in the fund are subject to annual appropriation by the general assembly to the institute for the direct and indirect costs associated with awarding grants and interest-free loans pursuant to this section to assist institute charter schools:
To meet capital construction needs, including but not limited to obtaining financialassistance for capital construction through the "Building Excellent Schools Today Act", article 43.7 of this title, or repaying bonds issued by the Colorado educational and cultural facilities authority, created in section 23-15-104, C.R.S., for construction of institute charter school buildings; or
To address reasonable funding emergencies, as defined by rule of the institute board.
The state treasurer may invest, as provided by law, any moneys in the fund not expended for the purpose of this section. The state treasurer shall credit to the fund all interest and income derived from the investment and deposit of moneys in the fund.
Except as otherwise provided in paragraph (d) of this subsection (1), the balance ofunexpended and unencumbered moneys in the fund at the end of a budget year must not exceed seven hundred fifty thousand dollars. Any amount of unexpended and unencumbered moneys remaining in the fund at the end of a budget year that exceeds seven hundred fifty thousand dollars or the limit set pursuant to paragraph (d) of this subsection (1) is continuously appropriated to the institute, and the institute shall allocate the excess amount to the institute charter schools on a per-pupil basis by dividing the excess amount by the total pupil enrollment of the institute charter schools for the applicable budget year. The state treasurer shall ensure that any unexpended and unencumbered moneys that are in the fund at the end of a budget year up to seven hundred fifty thousand dollars or the limit set pursuant to paragraph (d) of this subsection (1) remain in the fund and are not credited or transferred to the general fund or another fund.
The institute board may adopt a formula to annually adjust the limit on the fundbalance specified in paragraph (c) of this subsection (1) by multiplying the total pupil enrollment for institute charter schools in the preceding budget year by a per-pupil dollar amount set annually by the institute board in collaboration with a council of institute charter schools.
(2) An institute charter school that seeks a grant or an interest-free loan pursuant to this section must submit to the state charter school institute, in accordance with the timelines and procedures adopted by rule of the institute board, an application that includes, at a minimum:
For an institute charter school that seeks a grant or an interest-free loan to use asmatching moneys to obtain financial assistance for capital construction through the "Building Excellent Schools Today Act", article 43.7 of this title:
Evidence that the institute charter school meets the definition of a "charter school"specified in section 22-43.7-103 (7);
A copy of the application that the institute charter school has submitted or is preparing to submit to the public school capital construction assistance board pursuant to section 22-43.7-109;
An estimate of the amount of matching moneys, as defined in section 22-43.7-103 (11), that the public school capital construction assistance board will require, if known; and
Information concerning any other sources of funding available to the institute charter school;
For an institute charter school that seeks a grant or an interest-free loan to use inrepaying bonds or notes issued on the institute charter school's behalf by the Colorado educational and cultural facilities authority pursuant to article 15 of title 23, C.R.S.:
Copies of the documents the institute charter school has submitted or will submit tothe Colorado educational and cultural facilities authority to request issuance of the bonds or notes;
The amount of bonds or notes issued or to be issued and the total amount the institute charter school is required to repay; and
Information concerning any other source of funding available to the institute charterschool;
For an institute charter school that seeks a grant or an interest-free loan to assist inmeeting other capital construction costs:
A description of the institute charter school's capital construction needs;
A description of the capital construction project the institute charter school has undertaken or will undertake to meet its needs, including the estimated cost to complete the project; and
Information concerning any other source of funding available to the institute charterschool; and
For an institute charter school that seeks a grant or an interest-free loan to address areasonable funding emergency:
(I) A description of the institute charter school's emergency and how it qualifies as a reasonable funding emergency under rules adopted by the institute board; and (II) and (III) (Deleted by amendment, L. 2013.) (IV) A description of when the funding is needed.
The state charter school institute shall review each application received pursuant tosubsection (2) of this section and shall recommend to the institute board those institute charter schools that should receive moneys pursuant to this section, whether the moneys should be awarded in the form of grants or interest-free loans, and the amounts of the grants or interest-free loans. In making its recommendations, the institute shall apply criteria adopted by rule of the institute board, which criteria shall prioritize applications based on the applicant's level of economic need and the viability and merit of the capital construction project.
(a) The institute board shall consider the state charter school institute's recommendations and award grants and interest-free loans pursuant to this section to assist institute charter schools based on the level of economic need demonstrated by an applicant and the viability and merit of the capital construction project proposed in the application.
If the institute board awards an interest-free loan to an institute charter school pursuant to this section, it shall set the terms of repayment with the institute charter school.
The state charter school institute shall not pay a grant or an interest-free loan awarded pursuant to this section for use as matching moneys to obtain financial assistance for capital construction through the "Building Excellent Schools Today Act", article 43.7 of this title, until the recipient institute charter school provides proof that the public school capital construction assistance board has selected it to receive financial assistance pursuant to article 43.7 of this title.
The state charter school institute shall not pay a grant or an interest-free loan awarded pursuant to this section for use in repaying bonds or notes issued by the Colorado educational and cultural facilities authority until the recipient institute charter school provides proof that the bonds or notes have been issued on the institute charter school's behalf.
The institute board shall promulgate rules pursuant to the "State Administrative Procedure Act", article 4 of title 24, C.R.S., for the implementation of this section, including but not limited to rules that define a reasonable funding emergency and rules that specify any information to be included in an application in addition to the information specified in subsection (2) of this section.
Nothing in this section shall be interpreted as creating an entitlement in an institutecharter school for receipt of a grant or an interest-free loan from the fund, but awards of grants and interest-free loans shall be at the sole discretion of the institute board.
Source: L. 2009: Entire section added, (SB 09-089), ch. 440, p. 2437, § 5, effective June
4. L. 2010: (1)(a), (2)(b)(III), and (2)(c)(III) amended and (2)(d) added, (SB 10-111), ch. 170, p. 601, § 5, effective August 11. L. 2013: (1), IP(2), (2)(d), and (5) amended, (SB 13-143), ch. 71, p. 228, § 3, effective March 22. L. 2014: (1)(c) amended, (HB 14-1298), ch. 244, p. 937, § 24, effective May 21.