Section 388.13. Noncompliance; remedies.

Rule 13. (1) The following situations constitute noncompliance:

(a)   A school district that owes the state loan repayments relating to qualified bonds fails to levy at least the computed millage upon its taxable value for debt retirement purposes for qualified bonds or qualified loans under the act.

(b)    A school district fails to honor its agreement to repay a qualified loan or any installment of a qualified loan.

(c)   A school district fails to file or correctly file required documentation as defined in the act or these rules.

(2)   In addition to any other remedies provided by the act or other state law, in the event of noncompliance, the school district shall do all of the following as required by the department:

(a)   File or correct the required documentation.

(b)   Increase its debt levy in the next succeeding year to obtain the funds necessary to repay the amount of the default plus a late charge that shall be 3% of the amount due. If a school district fails to levy at least the computed millage upon its taxable value, then the school district shall increase its debt levy in the next succeeding year to obtain the amount necessary to repay the amount of the default plus a late charge that shall be 3% of the amount due even when such an increase will be higher than the computed millage.

(c)   Shall pay to the state the amount of the default plus the 3% late charge together with any other amounts owed during the next tax year following the year in which the default occurred.

(3)    The department shall cause state school aid not to be disbursed to the non- complying school district until arrangements for the payment of the amount in arrears are made with the department's approval.

(4)   Failure of a school district to comply with application due dates or failure of a school district to process any report, application, confirmation, or repayment as required under the act or in these rules may result in 1 or both of the following:

(a)   The department may issue a notification to the school board requiring a written response of remedy.

(b)   The department may withhold a school district's state aid funds until the school district complies with all requirements.

(5)   None of the following situations constitutes noncompliance:

(a)   Taxpayer delinquencies.

(b)   Failure of projected pupil or tax base growth rates to meet initial projections.

(c)   Decline in the school district tax base.

History: 2007 AACS; 2014 AACS.