15-1102. Disposition of proceeds from sale or lease of school property; school plant monies; payment of bonded indebtedness; definition

A. The governing board, or the superintendent or chief administrative officer with the approval of the governing board, may expend the proceeds from the sale or lease of school property for the payment of any outstanding bonded indebtedness of the school district or for the reduction of school district taxes.

B. A common school district or a high school district that has an outstanding bonded indebtedness of seven percent of the current year's assessed valuation or less or a unified school district that has an outstanding bonded indebtedness of fourteen percent of the current year's assessed valuation or less may expend the proceeds from the sale or lease of school property as follows:

1. The total sum of the proceeds from the sale of school property executed before July 1, 2016, for the total sum of the proceeds from the sale of property to a school or the total sum of the proceeds from the lease of school property to persons or entities other than schools for more than one year:

(a) May be expended for maintenance and operation in an amount that does not exceed fifteen percent of the revenue control limit for that year as provided in section 15-947, subsection A in any year.

(b) May be expended for capital outlay in any amount.

2. From and after June 30, 2016, proceeds from the sale of school property that exceed one hundred thousand dollars per sales transaction to persons or entities other than schools may not be expended for maintenance and operation and may be expended for capital outlay in any amount.

C. A common school district or a high school district that has an outstanding bonded indebtedness of greater than seven percent of the current year's assessed valuation or a unified school district that has an outstanding bonded indebtedness of greater than fourteen percent of the current year's assessed valuation may expend the proceeds from the lease or sale of school property as follows:

1. For the total sum of the proceeds from the sale of school property executed before July 1, 2016, for the total sum of the proceeds from the sale of property to a school or for the total sum of the proceeds from the lease of school property to persons or entities other than schools for more than one year:

(a) Up to twenty-five percent of the sales proceeds may be expended for maintenance and operation in an amount that does not exceed fifteen percent of the revenue control limit for that year as provided in section 15-947, subsection A in any year.

(b) The sales or lease proceeds may be expended for capital outlay in any amount.

2. From and after June 30, 2016, for proceeds from the sale of school property that exceed one hundred thousand dollars per sales transaction to persons or entities other than schools:

(a) The sales proceeds may not be expended for maintenance and operation.

(b) At least thirty-eight percent of the sales proceeds shall be used for the payment of any outstanding bonded indebtedness of the school district or for the reduction of school district taxes.

(c) The remainder of the sales proceeds that are not obligated pursuant to subdivision (b) of this paragraph may be expended for capital outlay in any amount.

D. The governing board, or the superintendent or chief administrative officer with the approval of the governing board, shall promptly deposit monies received for and derived from the sale or lease of school property with the county treasurer who shall establish a school plant fund. Monies placed to the credit of the school plant fund may be expended as provided in this section. The school plant fund is a continuing fund that is not subject to reversion.

E. Proceeds from sales by condemnation or sales under threat of condemnation may be deposited with the county treasurer for deposit in the condemnation fund or the school plant fund of the school district. The condemnation fund is a continuing fund that is not subject to reversion, except that after ten years any unspent monies shall be placed in the school plant fund to be used as prescribed in this section. The governing board, or the superintendent or chief administrative officer with the approval of the governing board, may apply the proceeds in the condemnation fund to:

1. The payment of any outstanding bonded indebtedness of the school district that is payable from the levy of taxes on property within the school district.

2. Construct, acquire, improve, repair or furnish school facilities or sites after notice and a hearing.

F. Proceeds from a right-of-way settlement shall be deposited with the county treasurer for deposit in the condemnation fund of the school district. The governing board, or the superintendent or chief administrative officer with the approval of the governing board, shall apply those proceeds in the condemnation fund to construct, acquire, improve, repair or furnish school facilities or sites after notice and a hearing.

G. The restrictions prescribed in subsections B and C of this section do not apply to the proceeds from:

1. Leases of school property to other schools.

2. Leases of school property for less than one year.

3. Sales of school property of less than one hundred thousand dollars per transaction.

H. A lease of school property for less than one year that includes an automatic lease renewal resulting in a total lease duration that exceeds one year is considered a lease for more than one year for the purposes of this section.

I. For the purposes of this section, " capital outlay" means unrestricted capital outlay as prescribed in section 15-903, subsection C.