Literary Fund; open application process for loans, maximum loan amounts, etc. (HB253)

Introduced By

Del. Shelly Simonds (D-Newport News) with support from co-patrons Del. Ronnie Campbell (R-Raphine), and Del. Kelly Fowler (D-Virginia Beach)

Progress

Introduced
Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law

Description

Literary Fund; loans; application process; maximum loan amounts; rates of interest; closing costs; waiting lists. Makes several changes to the provisions relating to loans from the Literary Fund to finance the construction and renovation of public elementary and secondary school buildings in the Commonwealth. The bill requires the Board of Education (the Board) to establish an annual open application process for Literary Fund loans to occur during the period that the Board deems most suitable. The bill increases from $7.5 million to $25 million the maximum Literary Fund loan amount and permits the Board to increase such maximum to up to $35 million for loans for any school construction or renovation project that facilitates the consolidation of schools. The bill requires the Board to fix the interest rate on all loans made from the Literary Fund at not less than one percent per year, not more than three percent per year, and at increments of one half of one percent per year between such minimum and maximum rates, payable annually, and to utilize a sliding scale based on the local school division's composite index of local ability to pay to determine the interest rate on each such loan. Under current law, such rates are required to be set between two and six percent per year. The bill requires the Board to establish a competitive program for the award of up to $25,000 to a school division that receives a Literary Fund loan for the purpose of subsidizing all or a portion of the closing costs for such loan. The bill also permits the Board to remove any project that has been inactive for at least five years from any Literary Fund loan project waiting list that it maintains. This bill is a recommendation of the Commission on School Construction and Modernization. Read the Bill »

Outcome

Bill Has Failed

History

DateAction
01/11/2022Committee
01/11/2022Prefiled and ordered printed; offered 01/12/22 22103502D
01/11/2022Referred to Committee on Education
01/18/2022Impact statement from DPB (HB253)
01/24/2022Assigned Education sub: Early Childhood/Innovation
01/26/2022Subcommittee recommends reporting (8-Y 0-N)
01/26/2022Subcommittee recommends referring to Committee on Appropriations
01/31/2022Reported from Education (22-Y 0-N) (see vote tally)
01/31/2022Referred to Committee on Appropriations
01/31/2022Assigned App. sub: Elementary & Secondary Education
02/07/2022Subcommittee recommends laying on the table (5-Y 3-N)
02/15/2022Left in Appropriations

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