document resume north dakota's school construction ... resume. ed 434 501 ef 005 618. title...

DOCUMENT RESUME

ED 434 501 EF 005 618

TITLE North Dakota's School Construction Approval Process andSchool Construction Loan Approval Process Reference Guide.

INSTITUTION North Dakota State Dept. of Public Instruction, Bismarck.PUB DATE 1998-03-00NOTE 71p.

PUB TYPE Guides - Non-Classroom (055) Legal/Legislative/RegulatoryMaterials (090)

EDRS PRICE MF01/PC03 Plus Postage.DESCRIPTORS Elementary Secondary Education; *Facility Guidelines; Public

Schools; *School Construction; School Districts; *StateLegislation; *State Regulation; State Standards

IDENTIFIERS Application Forms; Construction Grants; *North Dakota

ABSTRACTThis guide is a reference for North Dakota school district

personnel. It includes all documents related to the subjects of schoolconstruction approval for schools under, and over, $150,000; constructionloans, including application forms which can be reproduced; and the timelinesfor both processes. School facility plan forms are provided to guide schooldistricts in the development of sophisticated, conclusive, and supportivedocumentation for proposed school facility projects. Also included are NorthDakota Statutes related to the Joint Powers Agreement, School ConstructionApproval, State School Construction Fund and Loans, Selling Evidence ofIndebtedness, and the Competitive Bidding Process. (GR)

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Reproductions supplied by EDRS are the best that can be madefrom the original document.

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North Dakota's

School Construction Approval Process

And

School Construction Loan Approval Process

March, 1998

Departmentl 1BIi7Dr.Wyr71ueirt:eEZD:1iandent

600 E Boulevard Avenue, Dept 201lElismarck, ND 58505-0440

328-22600O U.S. DEPARTMENT OF EDUCATIONOffice of Educational Research and Improvement

ED ATIONAL RESOURCES INFORMATIONCENTER (ERIC)

IIIIIII

This document has been reproduced asreceived from the person or organizationcriginating it.

0 Minor changes have been made toimprove reproduction quality.

Points of view or opinions stated in thisdocument do not necessarily representofficial OERI position or policy.

BarreOPYAVAILABLE

2

II"

1

PERMISSION TO REPRODUCE ANDDISSEMINATE THIS MATERIAL HAS

BEEN GRANTED BY

. Linnertz

TO THE EDUCATIONAL RESOURCESINFORMATION CENTER (ERIC)

FORWARD

The 1993 Legislature passed legislation which substantially

affected the school construction approval process and the

issuance of low interest school construction loans in North

Dakota.

The legislation required the Department of Public Instruction

to develop rules implementing the statutes. Following an

intensive period of public input from school personnel, the

Department completed rules and documents which became part of

the North Dakota Administrative Code in the fall of 1993.

This guide has been developed by the Department of Public

Instruction as a readily accessible reference for school

district personnel in North Dakota school districts. It

includes all documents which are related to the subjects of

school construction approval and construction loans including

application forms which can be readily reproduced.

If your school district is contemplating construction or major

remodeling projects, it is recommended that you review this

guide in detail and notify the DPI Office of School Finance at

224-2267 for assistance.

3

Table of Contents

Construction Approval Rules White

Construction Approval Timeline and Application

Projects under $150,000 Yellow

Projects over $150,000

School Facility Plan

Yellow

Gray

Construction Loan Rules White

Construction Loan Timeline and Application PinkSchool Construction Loans/Closing Requirements

Resources: North Dakota Statutes Related to: White

Joint Powers Agreement

School Construction Approval

State School Construction Fund and Loans

Selling Evidences of Indebtedness

Competitive Bidding Process

4

ARTICLE 67-09

APPROVAL FOR SCHOOL CONSTRUCTION ESTIMATED TO COST MORE THANTWENTY-FIVE THOUSAND DOLLARS

Chapter:67-09-01 Approval for School Construction Estimated to Cost More

Than Twenty-five Thousand Dollars

CHAPTER 67-09-01APPROVAL FOR SCHOOL CONSTRUCTION ESTIMATED TO COST MORE THAN

TWENTY-FIVE THOUSAND DOLLARS

Section67-09-01-01 Definitions67-09-01-02 Construction costing more than twenty-five thousand

dollars must be approved67-09-01-03 Consultation with the department required67-09-01-04 Preparing the application67-09-01-05 Facility plan required for certain construction67-09-01-06 Submission of application67-09-01-07 Demonstration of need and educational utility67-09-01-08 Application acted on within forty-five days67-09-01-09 Appeal of disapproved application to board67-09-01-10 Approval effective for two years67-09-01-11 Submission of architectural plans

67-09-01-01. Definitions. For purposes of this article, the

following terms mean:

1. "Application" means the appropriate construction approval

application provided by the department or one sanctioned

by the department, including all required supporting

documentation.

2. "Board" means North Dakota state board of public school

education.

1

5

3. "Construction" means construction, purchase, repair,

improvement, renovation, or modernization of any school

building or facility.

4. "Consult" means to meet with, discuss data and plans, and

seek advice and counsel.

5. "Department" means the North Dakota department of public

instruction.

6. "District" means a North Dakota public school district.

7. "Emergency construction" means any new construction or

remodeling construction that is requested as the result

of destruction of buildings or facilities by fire, wind,

or other act of God.

8. "Facility" includes a parking lot, athletic complex, or

any other improvement to real property owned by the

district.

9. "Facility plan" means the school district's facility plan

required for new construction, or remodeling construction

estimated to cost one hundred and fifty thousand dollars

or more, completed on forms provided or sanctioned by the

department.

62

10. "New construction" means any construction which provides

additional area to the current buildings or facilities

and is estimated to cost more than twenty five thousand

dollars.

11. "Remodeling construction" means any construction which

improves current buildings or facilities and is estimated

to cost more than twenty five thousand dollars.

12. "Superintendent" means the North Dakota superintendent of

public instruction.

13. "Technical assistance" means counsel, advice, and

involvement in the completion of the application and

facility plan.

History:General Authority: NDCC 15-35-01.1Law Implemented: NDCC 15-35-01.1

67-09-01-02. Construction costing more than twenty-five

thousand dollars must be approved. No district may undertake

construction of any school building or facility estimated to cost

more than twenty-five thousand dollars unless the construction is

approved by the superintendent.


67-09-01-03. Consultation with the department required. The

district shall consult with the department at least:

. 3

7

1. sixty days prior to the submission of an application if

the construction is new construction, or remodeling

construction estimated to cost one hundred and fifty

thousand dollars or more, and

2. thirty days prior to the submission of an application if

the construction is remodeling construction estimated to

cost less than one hundred and fifty thousand dollars.

The department may waive the timelines in this section for

applications submitted under section 67-09-01-06 before July 1,

1994, and for emergency construction.


67-09-01-04. Preparing the application. The district shall

obtain the appropriate application from the department. The

district shall receive and consider technical assistance provided

by the department in preparing the application.


67-09-01-05. Facility plan required for certain

construction. Any district proposing to undertake new

construction, or remodeling construction estimated to cost one

hundred and fifty thousand dollars or more, must meet the

48

requirements of this section as well as all other sections in this

chapter.

1. The district must submit to the department a facility

plan along with the application for construction

approval.

2. At the time of consultation with the department, the

district shall complete and review with the department

its facility plan. The district shall receive and

consider technical assistance provided by the department

in completing and reviewing the district's facility plan.

3. The district's facility plan shall include:

a. alternatives considered by the district and reasons

for rejecting alternatives,

b. evidence of attempted cooperation or collaboration

with area schools, health and human service

agencies, and other educational agencies and

political subdivisions,

c. description of district programs and services and

an assessment of improvements that will occur as a

result of construction completion,

d. the location of school sites in each surrounding

school district, including their attendance numbers

in elementary and high school, capacity of

buildings, and distances from applicant's district,

e. past, current, and projected enrollment data,

f. trend data on general fund revenues, expenditures,

and fund balances,

g trend data on tax levies,

h. trend data on taxable valuation per pupil,

i. current bonded indebtedness, debt retirement

schedules, and total capital expenditures of the

district

J current sources of district revenue,

k. a description and preliminary diagrams of the

proposed construction,

1. geographic information regarding area proposed to

be served,

m. description of district schools and facilities,

6 10

n. violations of fire, health, safety and any other

required state or federal standards that will be

corrected by the construction,

o. trend data on school or facility maintenance,

p estimated differences in operating costs as a

result of construction completion,

q description of programs to reduce energy costs and

waste disposal costs, and

r. other data as deemed advisable by the

Superintendent.

4. The district's facility plan must be approved by the

department before it may be submitted to the

superintendent with the application.


67-09-01-06. Submission of application. The district shall

submit the application to the department, along with its approved

facility plan, if necessary. If the superintendent determines the

application is not complete, the superintendent shall return the

application to the district for proper completion.

History:General Authority: NDCC 15-35-01.1Law Implemented: NDCC 15 -35 -01.1

711

67-09-01-07. Demonstration of need and educational utility.

The superintendent may not approve the application unless the

district demonstrates to the superintendent's satisfaction the need

and educational utility of the project based on criteria which

include the following:

1. For remodeling construction estimated to cost less than

one hundred and fifty thousand dollars:

a. the district demonstrates the requisite need for

the remodeling construction,

b. the building or facility will be in use for at

least three years,

c. enrollment is likely to remain relatively stable

for at least three years, and

d. the remodeling construction will enhance or

facilitate delivery of educational services in the

district.

2. For new construction, or remodeling construction

estimated to cost one hundred and fifty thousand dollars

or more:

128

a. the proposed building or facility is comparable in

size and quality to buildings or facilities

recently constructed in other districts that have

similar enrollments,

b. the district has attempted cooperation or

collaboration with area schools, health and human

service agencies, and other educational agencies

and political subdivisions,

c. the need for buildings or facilities could not be

met within the district or adjacent districts at a

comparable cost by leasing, repairing, remodeling,

or sharing existing buildings or facilities or by

using temporary buildings or facilities,

d. no form of cooperation with another district would

provide the buildings or facilities to meet the

needs of the students,

e. the building or facility will enhance or facilitate

the delivery of educational services in the

district,

f. the economic and population bases of the

communities to be served are likely to grow or to

13

remain at a level sufficient to ensure the cost

effectiveness of the building or facility,

g the building or facility meets or exceeds the size

standards recommended by the department,

h. appropriate efforts to determine how this building

or facility fits into the learning needs of the

area have been made,

i. the availability and manner of financing the

J

construction has been thoroughly evaluated, and

the operating budget of the district can

satisfactorily meet the projected operation cost of

the proposed building or facility.


67-09-01-08. Application acted on within sixty days. The

superintendent shall, within sixty days of receipt of the completed

application, either approve or disapprove the application, and

shall provide a written rationale for such approval or disapproval.

However, if the application seeks approval of emergency

construction, the superintendent shall approve or disapprove the

application within seven days, or as soon thereafter as is

reasonably possible.

404


67-09-01-09. Appeal of disapproved application to board. If

the superintendent disapproves the district's application, the

district may appeal the superintendent's decision to the board by

serving a written notice of appeal on the superintendent, along

with a statement of the reasons why the application should be

approved, within thirty days of the mailing of the notification of

disapproval. The board, within sixty days of receipt of the

written appeal request, shall review the application, the

superintendent's written rationale for disapproval, and the

district's statement of reasons why the application should be

approved, and determine whether the application should be approved.

The board's decision on the district's application is final.


67-09-01-10. Approval effective for two years. Construction

approval received pursuant to this chapter is effective for two

years from the date of approval. If the district has not commenced

construction within the two year period, the district will have to

apply again for construction approval.


67-09-01-11. Submission of architectural plans. Prior to

commencement of approved construction, the district shall submit

architectural plans required by law to the department.


16

12

SCHOOL CONSTRUCTION APPROVAL

PROCESS

Under 150,000

1) Consult/Technical Assistance of Department30 days

2) Filing of Application

3) Superintendent acts in 60 daysNeed and Education UtilityStability

4) Appeal to State Board of Education60 days to act

5) Architectural Plans submitted toSuperintendent

SCHOOL FINANCE AND ORGANIZATION OFFICEDEPARTMENT OF PUBLIC INSTRUCTION

600 East Boulevard AvenueBismarck, North Dakota 58505-0440

SCHOOL DISTRICT REQUEST FOR APPROVAL OFREMODELING CONSTRUCTION UNDER $150,000

This form is to be used only when the projected cost of construction is less than $150,000 and when theconstruction does not involve the addition of square footage to a building or facility. The State Superintendentwill act on this application within 60 days of receipt.

Application of School District No.

County, or Counties, North Dakota

Number of sections of land in district

Status of Accreditation:

( ) accredited

( ) accredited warned

( ) accredited with commendation

( ) not accredited

Taxable Valuation of District for 19

1

'S

1. Nature of Project: (Brief description attach additional sheets if necessary)

2. Please provide an explanation as to why the project is needed: (Provide additional sheets i fnecessary)

3. Estimated Cost of Project:

a. Construction materials

b. Architect's fees

c. Site

d. Furniture and movable equipment

e. Contingent and incidental expenses

TOTAL COST OF PROJECT $

4. Funds Available to District for this Project:

a. Building Fund -

b. Bonds -

c. General Fund

d. Other Sources (Please identify)

TOTAL $

219

5. School Enrollment: Grade Number Grade Number

1 7

2 8

3 9

4 10

5 11

6 12 TOTAL

Will this enrollment remain relatively stable for the next three years? Explain.

6. Will this facility be in use as a school facility for at least the next three years?Explain.

7. Will this project enhance or facilitate delivery of educational services in the district? Explain.

Is this construction being requested as the result of destruction of current buildings or facilities by fire, wind,or other act of God?

Attach school board minutes indicating project authorization.

Signed

Date

President Business Manager

School Construction Approval Process

(over $150,000)

1) Notify DPI at least 60 days beforesubmission of application forassistance.

2) Complete a facility plan and obtainapproval.

3) File application with approved facilityplan.

4) Superintendent must act on applicationin 60 days. Decision based on need andeducation utility of project.

5) Decision maybe appealed to State Boardof Education. Board must act in 60days.

6) The district must submit architecturalplans to the Department prior tocommencement of approved construction.


600 East Boulevard AvenueBismarck, ND 58505-0440

SCHOOL DISTRICT REQUEST FOR APPROVAL OF NEW CONSTRUCTION

OVER $25,000 AND REMODELING CONSTRUCTION OVER $150,000

This form is to be used only when the projected cost of new construction is over $25,000 or when remodeling

construction is over $150,000. An approved facility plan must accompany this application. The State

Superintendent will act on this application within 60 days of receipt.

Application of School District No. County(ies),

, North Dakota.

Status of Accreditation:

( ) accredited

( ) accredited warned

( ) accredited with commendation

( ) not accredited

Emergency construction: Is this construction being requested due to the destruction of current buildings or

facilities by fire, wind, or other acts of God? Yes No

Facility plan: If your school district has filed a facility plan with the Department of Public Instruction within

the last two years, you need only to file project specific forms 1, 2, 21, 22, and 23 with this request to update

your plan on file.

Attach school board minutes indicating project authorization.

Signed

Date

President Business Manager

42 r)

SCHOOL FACILITY PLAN

The School Facility Plan is intended as a "guide" to assist school districtsin the development of sophisticated, conclusive, supportivedocumentation for proposed school facility projects AND to assist theNorth Dakota Department of Public Instruction in fulfilling itsresponsibilities to be accountable to school districts, taxpayers andpatrons, and the State of North Dakota in facilitating the delivery ofqualitative programs and services to the youth of North Dakota. AsSchool Boards and Superintendents begin the process of assessingneeds and planning for possible, future school facility design, frequent,open, candid, and qualitative dialogue between school district leadersand the North Dakota Department of Public Instruction is encouragedand welcomed. The Superintendent of the North Dakota Departmentof Public Instruction and his staff stand ready to furnish advice,counsel, and technical assistance to school districts embarking uponthe design and development of new learning spaces that will furtherenhance the opportunities for North Dakota's youth to compete withdistinction in a highly-competitive global economy.

23

FORM 1

DESCRIPTION OF PROJECT

School District

Project Name

DESCRIPTION OF PROJECT

Furnish a brief, narrative description of the proposed project, includingconstruction material, number and types of specific learning or otherspaces (e.g. classrooms, library, offices, conference rooms, storage,etc.), location, new construction, remodeling, grade levels served, andadditional data, including planned start and completion date if projectis approved.

Other Data:

* Estimated* Estimated* Estimated* Estimated* Estimated* Estimated

square footagecost/square foottotal cost of projectannual (new) operating expenseannual (new) energy costsnew staff costs

24

FORM 2

NEED FOR THE PROJECT

School District

Project Name

NEED

Briefly specify the need or needs for undertaking the project anddescribe improvements that will occur as a result of projectcompletion. Examples: (a) to enhance program and service delivery tostudents; (b) to correct health and life safety concerns, code violations,statute violations; (c) to address space shortages created by increasingenrollment, open enrollment, restructuring, or the like; (d) to extendthe facility's life; (e) to increase facility efficiencies and/or reduce costoutlay; or (f) other.

25

FORM 3

DISTRICT GEOGRAPHIC INFORMATION

School District

Prepare an outline map of the school district, citing school buildinglocations, possible alternative facilities (for school use), majortransportation routes (highways), the project location, other pertinentdata.

26

FORM 4

AREA GEOGRAPHIC INFORMATION

School District

Prepare an outline map of the school district and adjacent schooldistricts. Note all school building locations, other alternative facilitiesfor school use, major highways, the project location, and othersignificant data (distances, driving times, barriers, etc.).

27

FORM 5

ALTERNATIVES

School District

Please identify alternatives considered by the School Board to addressthe school district's facility needs, prior to proposing the project.Include initiatives/overtures extended to cooperate with adjacentschool districts, post-secondary institutions, public or privateorganizations, governmental entities, and other organizations to fulfillthe district's facility needs.

28

FORM 6

REJECTION OF ALTERNATIVES

School District

Present rationale considered by the School Board to reject alternativesfor addressing the school district's facility needs, prior to proposing theproject. Particularly, detail rationale for rejecting the usage ofalternative space available (if any) in adjacent school districts, post-secondary institutions, public or private organizations, governmentalentities, and other organizations.

29

FORM 7

COLLABORATION

School District

Detail briefly below efforts that have been made to cooperate orcollaborate in the joint facility design, occupancy, sharing, or otherusage of the proposed project with other entities:

* Area Schools:

* Health/Human Service Agencies:

* Educational Agencies:

* Political Subdivisions:

* Other (e.g. private schools; private businesses, etc.)

33

FORM 8

FALL ENROLLMENT

School District

YEAR

Grade Level EnrollmentPre-K

K

1

2

3

4

5

6

7

8

9

10

11

12

K -6 Total

7 -9 Total

10 -12 Total

7 -12 Total

K -12 Total

FORM 9

PRIOR FALL ENROLLMENT (K-12)

School District

School Year Enrollment (K-12)

FORM 10

PROJECTED FALL ENROLLMENT (K-12) *

School District

School Year Enrollment (K-12)

Current

1

2

3

4

5

6

7

8

9

10

* Project on the basis of current student enrollment and most recentcensus.

33

TREND IN ENROLLMENT(Summary of forms 9 and 10)

School District

EnrollmentActual Changes

to

DistrictGain/Loss

Enrollment DistrictProjected Gain/LossChanges

to

Twenty Year Trend

to

DistrictGain/Loss

FORM 11

* Project on the basis of current student enrollment and mostrecent census.

34

FORM 12

GENERAL FUND REVENUES, EXPENDITURES, BALANCES

School District

Year Revenues Expenditures Balances

(Current)

35

FORM 13

EXPENDITURES/PUPIL

School District

General Fund Expenditures/Year Budget Pupils Pupil

(Current)

36

MILL LEVIES

School District

Year General Building S & I Total

(Current)

37

FORM 14

FORM 15

TAXABLE VALUATION

School District

Total TaxableYear Taxable Valuation Valuation/Pupil

(Current)

3$

District

North DakotaAverage

FORM 16

SOURCES OF REVENUE

School District

Year

Federal % State % Local % Total %

39

INDEBTEDNESS

School District

Retirement Schedule

FORM 17

Debt Amount Principal Interest Repaid

Bonded:

* Issue 1:

* Issue 2:

* Issue 3:

Other (Explain/List):

*

*

*

40

Discipline

DESCRIPTION OF PROGRAMS AND SERVICES

School District

Year

SemesterCourses

Services

FORM 18

AgricultureArtBusiness/Marketing

Computer

Communications/English

Foreign Language

Home Economics

Industrial Technology

Mathematics

Music

Physical Education/Health

Science

Social Studies

Distributive Education

Telecommunication

Other:

Special Education

Counseling

Library/Media

Art (Specialist)

Music (Spec)

Physical Education (Spec)

Computer (Spec)

Community Ed.

Adult Ed.

Chemical Dep.

Social Work

Gifted

Athletics (# )

Clubs (# )

Co-curricular (# )

Please delineate the number of semester courses taught (not offered) in subjectmatter disciplines in the school district during the current year.

41

FORM 19

OVERVIEW OF FACILITIES

School District

Orig.Const.

Grade /Add. Site Current % ofFacility Levels Dates Size Capacity Enrollment Capacity

42

ADJACENT DISTRICT FACILITIES/SITES

Year

EnrollmentDistrict K-6 7-12 K-12 Bldg.

Capacities

FORM 20

Distance

,

*

*

43

FORM 21

VIOLATIONS AND PROPOSED IMPACT

School District

Project Name

Impact of project on existing violations that the schooldistrict may have (i.e. fire and safety, AmericanDisabilities Act, asbestos abatement, food storage andpreparation, etc.)

44

FORM 22

FACILITY EFFICIENCIES

Project Name

Estimate differences that will result in operating costs AND describeperceived reductions in energy and waste disposal costs to the districtthat will occur as a result of the project's approval.

4r

FORM 23

ASSURANCES

School District

Project Name

Provide assurances that (a) the proposed project is comparable in sizeand quality to projects recently constructed in other districts withsimilar enrollments, (b) collaboration/cooperation has been attempted,(c) the need for facilities could not be met within the district oradjacent districts at a comparable cost, (d) the facility will enhance orfacilitate educational service delivery, (e) the economic and populationbases of the communities to be served are likely to grow or remainlevel, (f) the facility meets/exceeds recommended size standards, (g) ananalysis has been made to determine the facility accommodation ofarea learning needs, (h) the availability and manner of financingconstruction has been evaluated, (i) the districts operating budget canmeet the proposed project's operating costs in a satisfactory manner.

a. Size and Quality Comparability:

b. Collaboration/Cooperation:

c. Inability to Identify /Secure Facility Alternatives at Comparable Cost:

46

d. Enhance Delivery of Educational Services:

e. Economic and Population Bases:

f. Meeting/Exceeding Size Standards:

g. Accommodation of Area Learning Needs:

h. Availability/Manner of Financing Construction:

i. Operating Budget Able to Meet Projected Operating Costs:

ARTICLE 67-10

SCHOOL CONSTRUCTION LOAN APPLICATION AND LOAN APPROVAL

Chapter:67-10-01 School Construction Loan Application and Loan Approval

CHAPTER 67-10-01SCHOOL CONSTRUCTION LOAN APPLICATION AND LOAN APPROVAL

Section67-10-01-01 Definitions67-10-01-02 Loan eligibility67-10-01-03 Application form67-10-01-04 Times loan applications considered67-10-01-05 Loan approval-Demonstration of fiscal need and

capacity to repay67-10-01-06 Loan approval-Order-Determination of loan amount and

percent of interest67-10-01-07 Board approval

67-10-01-01. Definitions. For purposes of this article, the

following terms mean:

1. "Board" means the board of university and school lands.

2. "Department" means the North Dakota department of public

instruction.

3. "District" means a North Dakota public school district.

4. "Fund" means the coal development trust fund controlled

by the Board of University and School Lands.

5. "Loan application" means the construction loan

application provided by the department of public

instruction.

6. "Project" means a building or facility that a school

district is authorized to construct, purchase, repair,

improve, renovate or modernize under N.D.C.C.

§ 15-35-01.1.

7. "Superintendent" means the North Dakota Superintendent of

Public Instruction.

History:General Authority:Law Implemented:

NDCC 15-35-01.1NDCC 15-35-01.1, 15-60

67-10-01-02. Loan eligibility. A district may apply for a

loan from the fund if the following are met:

1. The project has been approved by the superintendent or

the state board of public school education pursuant to

N.D.C.C. § 15-35-01.1, and is estimated to cost in excess

of fifty thousand dollars; and

2. The district has an existing indebtedness equal to at

least fifteen percent of the district's taxable

valuation; and

1.

Lt 9

3. The principal amount of the loan requested does not

exceed the lesser of thirty percent of the taxable

valuation of the district or five million dollars.

History:General Authority: NDCC 15-35-01.1Law Implemented: NDCC 15-35-01.1, 15-60

67-10-01-03. Application form. The district shall acquire

a loan application from the department and submit it to the

Superintendent. The district shall provide the following in the

loan application:

1. verification of existing indebtedness of at least fifteen

percent of the district's taxable valuation,

2. a discussion of alternative sources or methods for

financing the construction or improvement program,

3. verification that the school board of the district

intends to issue and sell evidences of indebtedness to

finance the construction or improvement,

4. past, current and projected enrollment data,

5. current bonded indebtedness, debt retirement schedules,

and total capital expenditures of the district,

6. current taxable valuation of the district,

7. trend data of per pupil taxable valuation of the

district,

8. current and projected operating expenses of the district,

9. data on tax levies of the district, and

10. other data as deemed advisable by the superintendent.


67-10-01-04. Times loan applications considered . Loan

applications received before July 1, 1994 will be considered for

approval within forty-five days after the application is received.

Thereafter, loan applications will be considered for approval two

times each year, in the months of March and September. For

consideration in March, the loan application must be received no

later than February 1. For consideration in September, the loan

application must be received no later than August 1.


67-10-01-05. Loan approval-Demonstration of fiscal need and

capacity to repay. Before the superintendent may approve a loan,

the district must demonstrate to the superintendent's satisfaction

fiscal need for the loan and capacity to repay the loan. To

determine fiscal need and capacity to repay, the following factors

will be considered:

1. the ratio between the district's total capital debt and

taxable valuation, (a 1:1 ratio indicates the highest

level of need),

51

2. the ratio between the district's tax levies and the

average district tax levies for the state of North Dakota

(the higher the total tax levies in relationship to the

average district tax levies, the greater the need),

3. the ratio between the district's total capital debt and

the district's annual total expenditures (the higher the

total capitol debt in relationship to the total annual

°expenditures, the greater the need),

4. the ratio of the district's per pupil taxable valuation

to the average per pupil taxable valuation for the state

of North Dakota (the lower the per pupil taxable

valuation in relationship to the state average, the

greater the need), and

5. a student population base that assures a reasonable level

of cost effectiveness of the facility.


67-10-01-06. Loan approval-Order-Determination of loan amount

and percent of interest. Loan applications will be considered for

approval in the order of approval of construction of the project by

the superintendent or the state board of public school education.

The superintendent may determine the loan amount and a percent of

interest to be paid on the loan.

5

52

1. The superintendent will not approve a loan amount that

exceeds two million five hundred thousand dollars for

any particular application. In determining the loan

amount to be awarded, the superintendent shall consider

the following:

a. the total number of loan applications received and

the total amount of loans requested in the six

month application period, or, if the application is

received prior to July 1, 1994, the total number of

loan applications received and the total amount of

loans requested at the time the application is

considered, and

b. the total amount of money the superintendent has

determined will be approved for loans in the six

month period, or, if the application is received

prior to July 1, 1994, the total amount of money

the superintendent has determined will be approved

for loans at the time the application is

considered, and

c. the cost of the project and the fiscal capacity of

the district.

53

6

2. The interest on a loan may not exceed the rate of two

percent below the net interest rate on comparable tax

exempt obligations as determined on the date the loan

application is approved by the superintendent, provided

the interest rate may not exceed six percent.


67-10-01-07. Board approval. The superintendent shall

submit any approved loan applications to the board for final

approval with recommendations regarding the loan amounts, the

percents of interest to be paid on the loans, and the terms of the

loans. The board shall consider the loan applications in the order

in which they were approved by the superintendent. The board shall

consider the superintendent's recommendation in determining whether

to approve the loan. A loan may not be approved if approval would

increase the outstanding principal balance of loans made from the

fund to more than twenty-five million dollars. The superintendent

shall notify each applicant of the action taken by the board.


7 54

School Construction Loan Process

1) Submit application with approvedfacility plan or updates.

Threshold requirements for application:

Construction ApprovalMore than $50,000151 existing indebtedness

2) Submit by February 1 or August 1.

3) Application is acted upon in March orSeptember. Decision based on fiscalneeds and capacity to repay.

4) DPI forwards recommendations on amount,interest rate, and term to Board ofUniversity and School Lands.

Loan is limited to 301 of taxablevaluation or $2,500,000.

55


600 East Boulevard AvenueBismarck, North Dakota 58505-0440

SCHOOL CONSTRUCTION LOAN APPLICATION

School District Date of Application

Address Contact Person/Phone

NOTE: Loan applications will be considered for approval two times each year, in the monthsof March and September. For consideration in March, the loan application must be received nolater than February 1. For consideration in September, the loan application must be received nolater than August 1.

156

State law requires that school districts meet the following three criteria to apply for a loan fromthe coal development trust fund:

1. The school district's construction project has been approved by the Superintendent ofPublic Instruction or the State Board of Public School Education and is estimiated to costin excess of $50,000.

a. Has your school district received approval for this construction project within thelast two years?

b. What is the estimated cost of the project?

2. The school district has an existing indebtedness equal to at least fifteen percent of thedistrict's taxable valuation.

a. What is your district's existing indebtedness?

b. What is your district's taxable valuation?

c. The existing indebtedness is % of the district's taxable valuation.

3. The principal amount of the loan requested does not exceed the lesser of thirty percentof the taxable valuation of the district or five million dollars.

a. What is the principal amount of the loan which you are requesting?

b. What is the current taxable valuation of the district?

c. 30% of the taxable valuation is

d. Is the principal amount of the loan requested equal to or less than the lesser of30% of the taxable valuation of the district or five million dollars?Yes No

If you meet the foregoing three criteria, you may apply for a loan. Complete the remaining partsof the application.

1. Does your school district intend to issue and sell evidences of indebtedness to finance theproposed construction or improvement of the project? Please submitappropriate verification regarding bond issue.

257

2. What other methods or sources of financing the construction project were considered?Please list and describe how each is being used if applicable. Also explain why othermethods of financing were discarded.

3. Does your district have a bond rating? If so, what date was it issued. (please includedocumentation of the bond rating)

4. Please provide your best estimate as to when construction will begin.

The following information can be provided by simply enclosing a copy of the facility plan whichyour school district developed for school construction approval. Please update your facility planwhere appropriate.

3. Provide a description of the construction project for which the loan application is beingmade.

4. Provide past (5 years), current and projected (5 years) enrollment data for the district.5. Provide current bonded indebtedness, debt retirement schedules, and the total capital

expenditures of the district.6. Provide past (5 years) and current taxable valuation of the district.7. Provide data of per pupil taxable valuation of the district for the last five years.8. Provide the current and projected operating expenses of the district including total

expenditures of the district.9. Provide data on current tax levies of.the district.

I certify that the information contained in this application is true and correct to the best of myknowledge.

Date SignedPresident

Please attach a copy of the board resolution authorizing this loan application. A memo listingloan closing requirements is attached for your information.

3 58

BANK OF NORTH DAKOTA

SCHOOL CONSTRUCTION LOANS - CLOSING REQUIREMENTS

The Bank of North Dakota will be handling the loan closing for schoolconstruction loans approved by the Board of University and School Lands.The documents required are outlined below and must be submitted to theBank for review prior to the closing date:

* Initial Resolution* Bond Issuance Resolution* Final Resolution* Closing Certificate* Non-arbitrage Certificate (Tax-exempt financings only)* Bond (One bond with amortization schedule) dated the date of closing* Recognized Bond Counsel Opinion

Note: The School District will have the option to prepay the debt at anytime.

Principal and interest is payable annually on June 1st.

Upon receipt and review of the executed documents, the Bank will fund theloan and make payment to the school district either by check, wiretransfer or account credit at the Bank. The school district will needto provide the Bank with payment instructions.

The Bank's fee for providing paying agent/registrar services is $200.00payable yearly in advance. The school district will be billed at closingthe amount due from the closing date to the first principal payment date.Thereafter, the annual fee will be included with the principal andinterest billing.

If you have any questions, the school district or your recognized bondcounsel may contact the BND Trust Department at 701-224-5609.

CH

APT

ER

15-

35

SCH

OO

L B

UIL

DIN

GS

Sec

tion

15-3

5-01

.1. A

ppro

val r

equi

red

for

cert

ain

scho

ol d

is-

tric

t con

stru

ctio

n pr

ojec

ts.

15-3

5-01

.2. I

nspe

ctio

n of

sch

ools

- S

ubm

issi

on o

fin

spec

tion

repo

rt -

Cor

rect

ion

of d

efi-

cien

cies

.15

-35-

10. F

ire,

torn

ado,

and

dis

aste

r em

erge

ncy

drill

s in

rur

al s

choo

ls -

Rul

es -

Dut

y of

coun

ty s

uper

inte

nden

t - R

epea

led.

15-3

5-01

.1. A

ppro

val r

equi

red

for

cert

ain

scho

ol d

istr

ict c

onst

ruct

ion

proj

ects

.1.

Not

with

stan

ding

the

pow

ers

and

dutie

s of

sch

ool b

oard

s of

pub

licsc

hool

dis

tric

ts o

ther

wis

e pr

ovid

edby

law

, all

cons

truc

tion,

pur

chas

e,re

pair

, im

prov

emen

t, re

nova

tion,

or

mod

erni

zatio

n of

any

sch

ool b

uild

-in

g or

fac

ility

with

in a

sch

ool d

is-

tric

t est

imat

ed b

y th

e sc

hool

boa

rds

to c

ost i

n ex

cess

of

twen

ty-f

ive

thou

-sa

nd d

olla

rs m

ay n

ot b

e co

mm

ence

dun

less

app

rove

d by

the

supe

rint

en-

dent

of

publ

ic in

stru

ctio

n. N

o su

chco

nstr

uctio

n, p

urch

ase,

rep

air,

im-

prov

emen

t, re

nova

tion,

or

mod

ern-

izat

ion

of a

ny s

choo

l bui

ldin

g or

faci

lity

may

be

appr

oved

unl

ess

the

scho

ol d

istr

ict p

ropo

sing

the

proj

ect

dem

onst

rate

s th

e ne

ed, t

he e

duca

-tio

nal u

tility

of

the

proj

ect,

fisc

alne

ed, a

nd th

e ca

paci

ty to

pay

for

the

proj

ect u

nder

rul

es a

dopt

ed b

y th

esu

peri

nten

dent

of

publ

ic in

stru

c-tio

n pu

rsua

nt to

cha

pter

28-

32 a

fter

rece

ivin

g in

put f

rom

the

stat

e bo

ard

of p

ublic

sch

ool e

duca

tion.

In

the

even

t of

disa

gree

men

t bet

wee

n th

esu

peri

nten

dent

of

publ

ic in

stru

c-tio

n an

d th

e sc

hool

boa

rd a

pply

ing

for

appr

oval

of a

cons

truc

tion

proj

ect u

nder

this

sect

ion,

the

scho

ol b

oard

may

app

eal t

he a

ppli-

catio

n to

the

stat

e bo

ard

of p

ublic

scho

ol e

duca

tion

and

the

deci

sion

of

the

stat

e bo

ard

appr

ovin

g or

dis

ap-

prov

ing

the

appl

icat

ion

is f

inal

.2.

For

pur

pose

s of

this

sec

tion,

"fa

cil-

ity"

incl

udes

a p

arki

ng lo

t, at

hlet

icco

mpl

ex, o

r an

y ot

her

impr

ovem

ent

to r

eal p

rope

rty

owne

d by

the

scho

oldi

stri

ct.

3. T

his

sect

ion

does

not

app

ly to

any

cons

truc

tion,

pur

chas

e, r

epai

r, im

-pr

ovem

ent,

reno

vatio

n, o

r m

oder

n-iz

atio

n re

quir

ed a

s pa

rt o

f a

plan

of

corr

ectio

n ap

prov

ed b

y th

e st

ate

fire

mar

shal

und

er s

ectio

n 15

-35-

01.2

,un

less

the

cost

of

the

impr

ovem

ents

exce

eds

seve

nty-

five

thou

sand

dol

-la

rs.

Sou

rce:

S.L

. 196

9, c

h. 1

89, §

2; 1

973,

ch.

179

, §1;

1993

, ch.

186

, § 3

; 199

5, c

h. 1

63, §

3; 1

997,

ch.

165

,1.

Effe

ctiv

e D

ate.

The

199

7 am

endm

ent o

f thi

s se

ctio

n by

sec

tion

1 of

chap

ter

165,

S.L

. 199

7 be

cam

e ef

fect

ive

Aug

ust 1

,19

97.

The

199

5 am

endm

ent o

f thi

s se

ctio

n by

sec

tion

3 of

chap

ter

163,

S.L

. 199

5 be

cam

e ef

fect

ive

Aug

ust 1

,19

95. 15

-35-

01.2

. Ins

pect

ion

of s

choo

ls -

Subm

issi

on o

f in

spec

tion

repo

rt -

Cor

rect

ion

of d

efic

ienc

ies.

1. T

he s

tate

fir

e m

arsh

al o

r th

e st

ate

fire

mar

shal

's d

esig

nee

shal

l in-

spec

t eac

h pu

blic

and

pri

vate

el-

emen

tary

and

sec

onda

ry s

choo

l in

this

sta

te a

t lea

st o

nce

ever

y th

ree

year

s, p

repa

re a

n in

spec

tion

repo

rt,

and

prov

ide

copi

es o

f th

e re

port

toth

e su

peri

nten

dent

of

the

scho

oldi

stri

ct a

nd th

e su

peri

nten

dent

of

publ

ic in

stru

ctio

n.2.

a. I

f a

defi

cien

cy is

not

ed, t

he s

u-pe

rint

ende

nt o

f th

e sc

hool

dis

-tr

ict s

hall

subm

it a

plan

of

cor-

rect

ion

to th

e st

ate

fire

mar

shal

or th

e st

ate

fire

mar

shal

's d

esig

-ne

e an

d sh

all r

emed

y th

e de

fi-

cien

cy w

ithin

a ti

me

peri

od a

c-ce

ptab

le to

the

stat

e fi

re m

arsh

alor

the

stat

e fi

re m

arsh

al's

des

ig-

nee

and

the

loca

l sch

ool b

oard

affe

cted

by

the

defi

cien

cy, b

utno

t lat

er th

an th

e ne

xt b

udge

t

b.fp

erio

d.f

the

repo

rt d

iscl

oses

an

imm

i-ne

nt f

ire

haza

rd, t

he s

tate

fir

em

arsh

al o

r th

e st

ate

fire

mar

-sh

al's

des

igne

e sh

all i

mm

edi-

atel

y no

tify

the

scho

ol d

istr

ict

boar

d, th

e su

peri

nten

dent

of

the

scho

ol d

istr

ict,

and

the

supe

rin-

tend

ent o

f pu

blic

inst

ruct

ion

ofth

e ha

zard

. Upo

n th

e re

com

men

-da

tion

by th

e su

peri

nten

dent

of

publ

ic in

stru

ctio

n fo

r im

med

iate

clos

ure,

the

scho

ol d

istr

ict b

oard

and

the

supe

rint

ende

nt o

f th

esc

hool

dis

tric

t may

imm

edia

tely

clos

e so

me

or a

ll of

the

scho

ol,

until

the

fire

haz

ard

is e

limi-

nate

d. I

n th

e ca

se o

f a

clos

ure,

the

supe

rint

ende

nt o

f th

e sc

hool

dist

rict

inw

hich

the

publ

icsc

hool

is lo

cate

d, o

r th

e ad

min

is-

6 0

BE

ST

CO

PY

AV

AIL

AB

LE

trat

or o

f th

e pr

ivat

e sc

hool

sha

llco

oper

ate

with

the

supe

rint

en-

dent

of

publ

icin

stru

ctio

nto

mak

e ad

equa

te a

rran

gem

ents

for

the

inte

rim

edu

catio

n of

all

affe

cted

stu

dent

s.S

ourc

e: S

.L. 1

997,

ch.

165

, § 2

.

Effe

ctiv

e D

ate.

Thi

s se

ctio

n be

cam

e ef

fect

ive

Aug

ust 1

, 199

7.

15-3

5-09

.Fi

re, t

orna

do, a

nd d

isas

-te

r em

erge

ncy

drill

s -

Dut

y of

sup

er-

inte

nden

ts a

nd te

ache

rs. A

llpu

blic

scho

olte

ache

rs w

ho te

ach

in s

choo

l bui

ld-

ings

con

sist

ing

of m

ore

than

one

roo

msh

all c

ondu

ct a

t lea

st o

ne f

ire,

torn

ado,

or

disa

ster

em

erge

ncy

drill

eac

h m

onth

ex-

cept

whe

n th

e w

eath

er is

incl

emen

t. In

dis

-tr

icts

hav

ing

a su

peri

nten

dent

, the

sup

er-

inte

nden

t sha

ll pr

escr

ibe

rule

s go

vern

ing

fire

,to

rnad

o, a

nd d

isas

ter

.em

erge

ncy

drill

s as

pro

vide

d in

this

sec

tion.

Sou

rce:

S.L

.19

15, c

h.13

7,4

I;19

25 S

upp.

,§

1494

b1; R

.C. 1

943.

15-3

509;

S.L

. 196

1, c

h. 1

58,

19; 1

981,

ch.

186

, 4 I.

15-3

5-11

.D

oors

in s

choo

lhou

ses

to b

e un

lock

ed a

nd f

ire

esca

pes

kept

clea

r. A

ll do

ors

in s

choo

lhou

ses

shal

l be

kept

unl

ocke

d fr

om e

ight

-thi

rty

a.m

. to

four

-thi

rty

p.m

. on

scho

ol d

ays.

The

way

of

egre

ss to

the

fire

esc

apes

in e

very

sch

ool

build

ing

shal

l be

kept

fre

e fr

om a

ll ob

-st

ruct

ion

at a

ll tim

es.

Sou

rce:

S.L

. 191

3, c

h. 2

55, 4

4 1,

2; C

.L. 1

913,

44 1

200,

120

1; R

.C. 1

943,

4 1

5-35

11.

15-3

5-12

.Sc

hool

bui

ldin

gs -

San

-ita

tion.

Eve

ry p

ublic

sch

ool b

uild

ing

shal

lbe

kep

t cle

an a

nd f

ree

from

eff

luvi

a ar

is-

ing

from

a d

rain

, pri

vy, o

r nu

isan

ce, a

ndsh

all b

e pr

ovid

ed w

ith a

suf

fici

ent n

umbe

rof

wat

er c

lose

ts, e

arth

clo

sets

, or

priv

ies,

and

shal

l be

vent

ilate

d in

suc

h a

man

ner

that

the

air

shal

l not

bec

ome

so im

pure

as

to b

e in

juri

ous

to h

ealth

.

Sou

rce:

S.L

. 189

5, c

h. 5

5, 4

I; R

.C. 1

895,

§ 8

74;

R.C

. 189

9, 4

874

; R.C

. 190

5, 4

103

8; S

.L. 1

911,

ch.

266,

4 2

90; 1

911,

ch.

269

, 4 2

, sub

s. 4

; C.L

. 191

3,44

140

3, 1

490,

sub

s. 4

; R.C

. 194

3, 4

15-

3512

.

Cro

ss-R

efer

ence

s.C

ount

y su

perin

tend

ent o

f hea

lth to

enf

orce

cle

anli-

ness

of s

choo

ls, s

ee 4

23-

03-0

7, s

ubs.

10.

15-3

5-13

.Su

peri

nten

dent

of

pub-

lic in

stru

ctio

n m

ay o

rder

cha

nge

insa

nita

ry o

r ve

ntila

ting

syst

ems

- A

p-pe

al -

Pen

alty

. Rep

eale

d by

S.L

. 197

5,ch

. 106

, § 6

73.

15-3

5-14

.U

se o

f sc

hool

bui

ldin

gsfo

r ot

her

than

sch

ool p

urpo

ses.

Sch

ool

boar

ds h

avin

g ch

arge

of

scho

ol b

uild

ings

and

othe

r sc

hool

fac

ilitie

s m

ay p

erm

it th

eus

e th

ereo

f un

der

prop

er r

estr

ictio

ns f

oran

y ap

prop

riat

e pu

rpos

e w

hen

not i

n us

efo

r sc

hool

pur

pose

s. E

qual

rig

hts

and

priv

i-le

ges

shal

l he

acco

rded

to a

ll re

ligio

us d

e-no

min

atio

ns a

nd to

all

polit

ical

par

ties.

Furn

iture

fas

tene

d to

the

build

ings

sha

llno

t be

rem

oved

or

unfa

sten

ed.

Publ

icsc

hool

and

hig

h sc

hool

aud

itori

ums,

gym

-na

sium

s, a

nd o

ther

sch

ool f

acili

ties

may

be

let f

or m

eetin

gs, e

nter

tain

men

ts, o

r co

n-ve

ntio

ns o

f an

y ki

nd, s

ubje

ct to

suc

h re

-st

rict

ions

as

the

gove

rnin

g bo

ard

of th

edi

stri

ct s

hall

pres

crib

e. S

uch

use

of th

ebu

ildin

gs a

nd o

ther

fac

ilitie

s sh

all n

ot b

epe

rmitt

ed to

inte

rfer

e w

ith th

e op

erat

ion

of th

e sc

hool

s or

with

sch

ool a

ctiv

ities

. Ach

arge

may

be

mad

e fo

r th

e us

e of

the

build

ings

, fac

ilitie

s, o

r an

y po

rtio

n th

ereo

f.

Sou

rce:

S.L

. 189

0, c

h. 6

2, 4

80;

R.C

. 189

5, 4

700

;R

.C. 1

899,

4 7

00; R

.C. 1

905,

4 8

28; S

.L. 1

911,

ch.

266

,§

77; C

.L. 1

913,

4 1

183;

S.L

. 193

1, c

h. 2

51, 4

I; R

.C.

1943

, 4 1

5-35

14; S

.L. 1

961,

ch.

158

, 4 2

2; 1

975,

ch.

106,

4 1

24; 1

977,

ch.

163

, 41.

The

atric

al E

nter

tain

men

ts.

A s

choo

l boa

rd m

ay r

ent i

ts h

igh

scho

ol a

udito

rium

for

thea

tric

al e

nter

tain

men

ts. S

imm

ons

v. B

oard

of

Edu

catio

n of

Cro

sby

(193

11 6

1 N

D 2

12, 2

37 N

W 7

00.

Col

late

ral R

efer

ence

s.68

Am

. Jur

. 2d,

Sch

ools

, 44

75-7

7.78

C.J

.S. S

choo

ls a

nd S

choo

l Dis

tric

ts, §

259

.U

se o

f pub

lic s

choo

l pre

mis

es fo

r re

ligio

us p

urpo

ses

durin

g no

nsch

ool t

ime,

79

ALR

2d

1148

.U

se o

f sch

ool p

rope

rty

for

othe

r th

an p

ublic

sch

ool

or r

elig

ious

pur

pose

s, 9

4 A

IR 2

d 12

74.

15-3

5-15

. Dut

y of

sup

erin

tend

ent

of p

ublic

inst

ruct

ion

to e

nfor

ce s

tat-

utes

. The

pro

visi

ons

of th

is c

hapt

er s

hall

he e

nfor

ced

by th

e su

peri

nten

dent

of

publ

icin

stru

ctio

n or

som

e pe

rson

des

igna

ted

byhi

m f

or th

at p

urpo

se.

Sou

rce:

S.L

. 191

1, c

h. 2

69, 4

3; C

.L. 1

913,

§ 1

491;

R.C

. 194

3, 4

15-

3515

.

15-3

5-16

.Pe

nalty

for

impr

oper

erec

tion

of s

choo

l bui

ldin

g. A

ny a

rchi

-te

ct o

r ot

her

pers

on w

ho d

raw

s pl

ans

orsp

ecif

icat

ions

for

, or

who

sup

erin

tend

s th

eer

ectio

n of

, a p

ublic

sch

ool b

uild

ing,

or

who

ere

cts

or c

onst

ruct

s a

publ

ic s

choo

lbu

ildin

g in

vio

latio

n of

the

prov

isio

ns o

fth

is c

hapt

er, s

hall

be g

uilty

of

an in

frac

-tio

n. Sou

rce:

S.L

. 191

1, c

h. 2

69, 4

6; C

.L. 1

913.

4 1

494;

R.C

. 194

3, 4

15-

3516

; S.L

. 197

5, c

h. 1

06. §

125

.

61

CH

APT

ER

15-

60

STA

TE

SC

HO

OL

CO

NST

RU

CT

ION

FUN

D

sect

ion

15-6

0-01

. Def

initi

ons.

15-6

0-03

. Pur

pose

s an

d ge

nera

l pow

ers

Rep

eale

d.15

-60-

06. G

over

ning

bod

yR

epea

led.

15-6

0-07

. Mon

eys

of th

e fu

ndR

epea

led.

15-6

0-08

. Com

petit

ion

in a

war

d of

con

trac

tsR

e-

peal

ed.

15-6

0-10

. Loa

ns.

15-6

0-11

. Sch

ool b

oard

may

issu

e ev

iden

ces

of in

debt

-ed

ness

.

15-6

0-01

. Def

initi

ons.

As

used

inth

is c

hapt

er, u

nles

s th

e co

ntex

t oth

erw

ise

requ

ires

:1.

"B

ank"

mea

ns th

e B

ank

of N

orth

Dak

ota.

62

2. "

Boa

rd"

mea

ns th

e bo

ard

of u

nive

r-si

ty a

nd s

choo

l lan

ds.

3. "

Con

stru

ctio

n"m

eans

purc

hase

,le

ase,

or

cons

truc

tion,

and

the

term

"to

cons

truc

t" m

eans

to p

urch

ase,

leas

e, o

r co

nstr

uct i

n su

ch m

anne

ras

may

be

deem

ed d

esir

able

.4.

"Fu

nd"

mea

ns th

e co

al d

evel

opm

ent

trus

t fun

d cr

eate

d by

sec

tion

21 o

far

ticle

X o

f th

e C

onst

itutio

n of

Nor

th D

akot

a an

d se

ctio

n 57

-62-

02.

5. "

Impr

ovem

ent"

mea

ns e

xten

sion

,en

larg

emen

t, or

impr

ovem

ent,

and

the

term

"to

impr

ove"

mea

ns to

ex-

tend

, to

enla

rge,

or

to im

prov

e in

such

man

ner

as m

ay b

e de

emed

desi

rabl

e.6.

"Pr

ojec

t" m

eans

any

str

uctu

re o

rfa

cilit

y th

at a

sch

ool d

istr

ict i

s au

-th

oriz

ed to

con

stru

ct o

r im

prov

e un

-de

r se

ctio

n 15

-35-

01.1

and

whi

ch is

estim

ated

to c

ost i

n ex

cess

of

fift

yth

ousa

nd d

olla

rs.

7. "

Supe

rint

ende

nt"

mea

ns th

e su

per-

inte

nden

t of

publ

ic in

stru

ctio

n.So

urce

: S.L

. 195

3, c

h. 1

36. §

I; 1

955,

ch.

132

, 1 2

1;R

.C. 1

943,

195

7 Su

pp.,

§ 15

-600

1; S

.L. 1

983,

ch.

82,

§ 35

; 199

1, c

h. 2

04, §

1; 1

993,

ch.

186

, § 4

.

15-6

0-03

. Pur

pose

s an

d ge

nera

lpo

wer

s. R

epea

led

by S

.L. 1

993,

ch.

186

,§

11. 15

-60-

06. G

over

ning

body

.R

e-pe

aled

by

S.L

. 199

3, c

h. 1

86, §

11.

15-6

0-07

. Mon

eys

of th

e fu

nd. R

e-pe

aled

by

S.L

. 199

3, c

h. 1

86, §

11.

15-6

0-08

.C

ompe

titio

n in

aw

ard

of c

ontr

acts

. Rep

eale

d by

S.L

. 199

3, c

h.18

6, §

11.

Not

e.Se

ctio

n 15

-60-

08 w

as a

men

ded

by th

e 19

93 L

egis

-la

tive

Ass

embl

y in

sec

tion

106

of c

hapt

er 5

4, S

i.19

93, a

nd r

epea

led

by s

ectio

n 11

of

chap

ter

186,

Si,.

1993

. The

sec

tion

is tr

eate

d as

rep

eale

d.

15-6

0-10

. Loa

ns.

1. T

he b

oard

may

aut

hori

ze th

e us

e of

mon

eys

depo

site

d in

the

coal

dev

el-

opm

ent t

rust

fun

d es

tabl

ishe

d pu

r-su

ant t

o se

ctio

n 21

of

artic

le X

of

the

Con

stitu

tion

of N

orth

Dak

ota

and

subs

ectio

n I

of s

ectio

n 57

-62-

02fo

r th

e pu

rpos

e of

fun

ding

loan

sde

scri

bed

in th

is c

hapt

er. T

he o

ut-

stan

ding

pri

ncip

al b

alan

ce o

f lo

ans

fund

ed u

nder

this

cha

pter

may

not

-exc

eed

twen

ty-f

ive

mill

ion

dolla

rs.

The

boa

rd m

ay a

dopt

pol

icie

s an

d

rule

s fo

r fu

ndin

g sc

hool

con

stru

c-tio

n lo

ans.

2. A

pro

ject

mus

t be

appr

oved

by

the

supe

rint

ende

nt p

ursu

ant t

o se

ctio

n15

-35-

01.1

bef

ore

a lo

an m

ay b

eis

sued

und

er th

is s

ectio

n. A

n ap

pli-

catio

n fo

r a

loan

und

er th

is s

ectio

nm

ust b

e su

bmitt

ed to

the

supe

rin-

tend

ent.

The

app

licat

ion

may

be

subm

itted

bef

ore

or a

fter

aut

hori

za-

tion

of a

bon

d is

sue

in a

ccor

danc

ew

ith c

hapt

er 2

1-03

. If

the

vote

toau

thor

ize

a bo

nd is

sue

prec

edes

the

appl

icat

ion

for

a lo

an, t

he a

pplic

a-tio

n m

ust b

e ac

ted

upon

by

the

supe

rint

ende

nt e

xped

itiou

sly,

but

no la

ter

than

one

hun

dred

eig

hty

days

fro

m th

e da

te it

is r

ecei

ved

byth

e su

peri

nten

dent

. The

app

lica-

tion

mus

tco

ntai

nin

form

atio

nde

emed

nec

essa

ry b

y th

e su

peri

n-te

nden

t, in

clud

ing

a di

scus

sion

of

alte

rnat

ive

sour

ces

or m

etho

ds f

orfi

nanc

ing

the

cons

truc

tion

or im

-pr

ovem

ent,

and

mus

t be

cons

ider

edin

the

orde

r of

its

appr

oval

und

ersu

bsec

tion

1 of

sec

tion

15-3

5-01

.1. I

fth

e su

peri

nten

dent

app

rove

s th

elo

an, t

he s

uper

inte

nden

t may

als

ode

term

ine

the

loan

am

ount

and

ape

rcen

t of

inte

rest

to b

e pa

id o

n th

elo

an. I

n de

term

inin

g th

e am

ount

of

a lo

an, t

he s

uper

inte

nden

t sha

llta

ke in

to a

ccou

nt th

e co

st o

f th

epr

ojec

t and

the

fisc

al c

apac

ity o

f th

esc

hool

dis

tric

t. lb

be

elig

ible

for

alo

an, t

he s

choo

l dis

tric

t mus

t hav

ean

exi

stin

g in

debt

edne

ss e

qual

to a

tle

ast f

ifte

en p

erce

nt o

f th

e sc

hool

dist

rict

's ta

xabl

e va

luat

ion.

In

de-

term

inin

g a

scho

ol d

istr

ict's

exi

st-

ing

inde

bted

ness

, the

sup

erin

ten-

dent

shal

lin

clud

eou

tsta

ndin

gin

debt

edne

ss a

utho

rize

d by

an

elec

-tio

n un

der

sect

ion

21-0

3-07

but

not

issu

ed, a

nd in

debt

edne

ss a

utho

-ri

zed

to b

e pa

id w

ith d

edic

ated

tax

levi

es u

nder

sub

sect

ion

7 of

sec

tion

21-0

3-07

but

not

issu

ed. T

he in

ter-

est o

n a

loan

may

not

exc

eed

the

rate

of

two

perc

ent b

elow

the

net

inte

rest

rat

e on

com

para

ble

tax-

exem

pt o

blig

atio

ns a

s de

term

ined

on th

e da

te th

e ap

plic

atio

n is

ap-

prov

ed b

y th

e su

peri

nten

dent

pur

-su

ant t

o se

ctio

n 15

-35-

01.1

, pro

-vi

ded

the

inte

rest

rat

e m

ay n

otex

ceed

six

per

cent

. The

sup

erin

ten-

dent

may

ado

pt r

ules

gov

erni

ngsc

hool

con

stru

ctio

n lo

ans.

3. L

oan

appl

icat

ions

app

rove

d by

the

supe

rint

ende

nt m

ust b

e fo

rwar

ded

BE

ST

CO

PY

AV

AIL

AB

LE

to th

e B

ank.

The

Ran

k sh

all m

an-

age

and

serv

ice

all s

choo

l con

stru

c-tio

n lo

ans

issu

ed u

nder

this

cha

pter

and

shal

l exe

cute

all

nece

ssar

y lo

anin

stru

men

ts. T

he B

ank

may

cha

rge

loan

rec

ipie

nts

a fe

e fo

r m

anag

ing

and

serv

icin

g th

e lo

an. T

he B

ank

shal

l rec

eive

pay

men

ts o

f pr

inci

pal

and

inte

rest

fro

m th

e sc

hool

dis

-tr

icts

, and

sha

ll re

mit

paym

ents

of

prin

cipa

l and

inte

rest

to th

e bo

ard,

whi

ch m

ust u

se o

r de

posi

t the

pay

-m

ents

in a

ccor

danc

e w

ith s

ectio

n57

-62-

02 a

nd s

ectio

n 21

of

artic

le X

of th

e C

onst

itutio

n of

Nor

th D

a-ko

ta.

Sour

ce: S

.L. 1

993,

ch.

186

, § 5

; 199

5, c

h. 1

63, §

4;

1995

, ch.

204

, §1.

Eff

ectiv

e D

ate.

The

199

5 am

endm

ent o

f th

is s

ectio

n by

sec

tion

4 of

chap

ter

163,

S.L

. 199

5 be

cam

e ef

fect

ive

Aug

ust 1

,19

95.

The

199

5 am

endm

ent o

f th

is s

ectio

n by

sec

tion

1 of

chap

ter

204,

S.L

. 199

5 be

cam

e ef

fect

ive

Mar

ch 2

7,19

95, p

ursu

ant t

o an

em

erge

ncy

clau

se in

sec

tion

2 of

chap

ter

204,

S.L

. 199

5.

Not

e.Se

ctio

n 15

-60-

10 w

as a

men

ded

twic

e by

the

1995

Leg

isla

tive

Ass

embl

y. P

ursu

ant t

o se

ctio

n 1-

02-0

9.1,

the

sect

ion

is p

rint

ed a

bove

to h

arm

oniz

e an

d gi

veef

fect

to th

e ch

ange

s m

ade

in s

ectio

n 4

of c

hapt

er 1

63,

S.L

. 199

5, a

nd s

ectio

n 1

of c

hapt

er 2

04, S

.L. 1

995.

15-6

0-11

. Sch

ool b

oard

may

issu

eev

iden

ces

of in

debt

edne

ss. T

he s

choo

lbo

ard

of a

sch

ool d

istr

ict m

ay is

sue

and

sell

evid

ence

s of

inde

bted

ness

pur

suan

t to

chap

ter

21-0

3 to

fin

ance

the

cons

truc

tion

orim

prov

emen

t of

a pr

ojec

t app

rove

d un

der

this

cha

pter

. The

pri

ncip

al a

mou

nt o

f th

elo

an a

nd th

e ev

iden

ces

of in

debt

edne

ss to

repa

y th

e lo

an m

ay n

ot e

xcee

d th

e le

sser

of

thir

ty p

erce

nt o

f th

e ta

xabl

e va

luat

ion

ofth

e sc

hool

dis

tric

t or

five

mill

ion

dolla

rs.

Evi

denc

es o

f in

debt

edne

ss is

sued

pur

suan

tto

this

cha

pter

con

stitu

te a

gen

eral

obl

iga-

tion

of th

e sc

hool

dis

tric

t.So

urce

: S.L

. 199

3, c

h. 1

86. §

6.

63

TIT

LE

48

PUB

LIC

BU

ILD

ING

S

CO

NT

RA

CT

OR

S' B

ON

DS

AN

DIN

SUR

AN

CE

48-0

1-01

. Bon

ds f

rom

con

trac

tors

for

publ

ic im

prov

emen

ts. R

epea

led

byS.

L. 1

995,

ch.

443

, § 2

9.

PUB

LIC

IM

PRO

VE

ME

NT

CO

NT

RA

CT

BID

S

48-0

1.1-

01. D

efin

ition

s. I

n th

is c

hap-

ter,

unl

ess

the

cont

ext o

ther

wis

e re

quir

es:

1. "

Con

stru

ctio

n" in

clud

es r

epai

r an

dal

tera

tion.

2. "

Con

stru

ctio

nad

min

istr

atio

n"m

eans

adm

inis

trat

ive

serv

ices

pro

-vi

ded

on b

ehal

f of

the

gove

rnin

gbo

dy, e

ither

by

the

gove

rnin

g bo

dyor

a r

egis

tere

d de

sign

pro

fess

iona

l,an

d in

clud

es p

rovi

ding

cla

rifi

ca-

tions

, sub

mitt

al r

evie

w, r

ecom

men

-da

tions

for

pay

men

t, pr

epar

atio

n of

chan

ge o

rder

s, a

nd o

ther

adm

inis

-tr

ativ

e se

rvic

es in

clud

ed in

the

agre

emen

t with

the

regi

ster

ed d

e-si

gn p

rofe

ssio

nal.

The

term

doe

s no

tin

clud

e su

perv

isio

n of

the

cons

truc

-tio

n ac

tiviti

es f

or th

e co

nstr

uctio

nco

ntra

cts.

3. "

Con

stru

ctio

n m

anag

emen

t" m

eans

the

man

agem

ent a

nd s

uper

visi

on o

fth

e co

nstr

uctio

n of

a p

ublic

im-

prov

emen

t, in

clud

ing

the

man

age-

men

t and

sup

ervi

sion

of

mul

tiple

prim

e co

ntra

cts.

The

term

doe

s no

tin

clud

eco

nstr

uctio

nad

min

istr

a-tio

n pe

rfor

med

by

a de

sign

pro

fes-

sion

al u

nder

the

term

s of

a p

rofe

s-si

onal

ser

vice

s ag

reem

ent w

ith th

ego

vern

ing

body

.4.

"C

ontr

acto

r" m

eans

any

per

son,

duly

lice

nsed

, tha

t und

erta

kes

oren

ters

a c

ontr

act w

ith a

gov

erni

ngbo

dy f

or th

e co

nstr

uctio

n or

con

-st

ruct

ion

man

agem

ent o

f an

y pu

b-

64

NO

RT

H D

AK

OT

A C

EN

TU

RY

SC

HO

OL

CO

DE

EX

CE

RPT

S

lic im

prov

emen

t, in

clud

ing

mul

tiple

prim

e co

ntra

cts.

5. "

Gov

erni

ng b

ody"

mea

ns th

e go

v-er

ning

off

icer

or

boar

d of

any

sta

teen

tity

or o

f an

y po

litic

al s

ubdi

vi-

sion

.6.

"Pu

blic

impr

ovem

ent"

mea

ns a

nyim

prov

emen

t the

cos

t of

whi

ch is

paya

ble

from

taxe

s or

oth

er f

unds

unde

r th

e co

ntro

l of

a go

vern

ing

body

incl

udin

g im

prov

emen

ts f

orw

hich

spe

cial

- as

sess

men

ts a

re le

v-ie

d. T

he te

rm d

oes

not i

nclu

de a

nyco

unty

roa

d co

nstr

uctio

n an

d m

ain-

tena

nce,

sta

te h

ighw

ay, o

r pu

blic

serv

ice

com

mis

sion

pro

ject

gov-

erne

d by

title

s 11

, 24,

or

38.

7. "

Sure

ty"

mea

ns a

bon

d or

und

erta

k-in

g ex

ecut

ed b

y a

sure

ty c

ompa

nyau

thor

ized

to d

o bu

sine

ss in

this

stat

e w

hich

is c

ount

ersi

gned

by

anag

ent o

f th

at c

ompa

ny.

Sour

ce: S

.L. 1

995,

ch.

443

, § 1

6; 1

997,

ch.

394

, § 1

.

48-0

1.1-

02. C

ontr

acts

let t

o lo

wes

tbi

dder

Em

erge

ncy

wai

ver.

A g

over

n-in

g bo

dy s

hall

awar

d a

cont

ract

for

the

cons

truc

tion

of a

pub

lic im

prov

emen

t un-

der

this

cha

pter

to th

e lo

wes

t res

pons

ible

bidd

er. T

he g

over

ning

bod

y m

ay r

ejec

t any

bid

and

read

vert

ise

for

prop

osal

s if

no

bid

is s

atis

fact

ory,

or

if it

bel

ieve

s an

y ag

ree-

men

t has

bee

n en

tere

d in

to b

y th

e bi

dder

sor

oth

ers

to p

reve

nt c

ompe

titio

n. I

f th

ego

vern

ing

body

det

erm

ines

that

an

emer

-ge

ncy

situ

atio

n ex

ists

, a c

ontr

act m

ay b

em

ade

with

out s

eeki

ng b

ids.

Sour

ce: S

.L. 1

995,

ch.

443

, § 1

6.

48-0

1.1-

03. P

ublic

atio

n of

adv

er-

tisem

ent f

or b

ids.

If

a co

ntra

ct o

f a

gov-

erni

ng b

ody

for

the

cons

truc

tion

of a

pub

licim

prov

emen

t is

estim

ated

to c

ost i

n ex

cess

of o

ne h

undr

ed th

ousa

nd d

olla

rs, t

he g

ov-

erni

ng b

ody

shal

l adv

ertis

e fo

r bi

ds b

ypu

blis

hing

for

thre

e co

nsec

utiv

e w

eeks

, the

firs

t pub

licat

ion

to b

e at

leas

t tw

enty

-one

days

bef

ore

the

date

of

the

open

ing

of b

ids.

The

adv

ertis

emen

t mus

t be

publ

ishe

d in

the

offi

cial

new

spap

er o

f th

e po

litic

al s

ub-

divi

sion

in w

hich

the

publ

ic im

prov

emen

tis

or

will

be

loca

ted,

and

in a

trad

e pu

bli-

catio

n of

gen

eral

cir

cula

tion

amon

g th

eco

ntra

ctor

s, b

uild

ing

man

ufac

ture

rs, a

ndde

aler

s in

this

sta

te, e

xcep

t the

adv

ertis

e-m

ent f

or a

pub

lic im

prov

emen

t fin

ance

d by

spec

ial a

sses

smen

ts n

eed

only

be

publ

ishe

don

ce e

ach

wee

k fo

r tw

o w

eeks

in th

e of

fici

alne

wsp

aper

with

the

firs

t pub

licat

ion

bein

gat

leas

t fou

rtee

n da

ys b

efor

e bi

d op

enin

g.

BE

ST

CO

PY

AV

AIL

AB

LE

Sour

ce: S

.L. 1

995,

ch.

443

, § 1

6; 1

997,

ch.

395

, § 1

.

48-0

1.1-

04. P

lans

and

spec

ific

a-tio

ns f

or p

ublic

impr

ovem

ent c

on-

trac

ts. I

f a

cont

ract

of

a go

vern

ing

body

for

the

cons

truc

tion

of a

pub

lic im

prov

emen

t is

estim

ated

to c

ost i

n ex

cess

of

one

hund

red

thou

sand

dol

lars

, the

gov

erni

ng b

ody

shal

lpr

ocur

e pl

ans,

dra

win

gs, a

nd s

peci

fica

tions

for

the

wor

k fr

om a

lice

nsed

arc

hite

ct o

rre

gist

ered

pro

fess

iona

l eng

inee

r. F

or p

ublic

build

ings

in u

se b

y or

to b

e us

ed b

y th

eN

orth

Dak

ota

agri

cultu

ral e

xper

imen

t sta

-tio

ns in

con

nect

ion

with

far

m o

r ag

ricu

l-tu

ral r

esea

rch

oper

atio

ns, t

he p

lans

, dra

w-

ings

, and

spe

cifi

catio

ns, w

ith th

e ap

prov

alof

the

boar

d of

hig

her

educ

atio

n, m

ay b

epr

ocur

ed f

rom

a r

egis

tere

d pr

ofes

sion

al e

n-gi

neer

if th

e en

gine

er is

in th

e re

gula

rem

ploy

men

t of

the

agri

cultu

ral e

xper

imen

tst

atio

n.So

urce

: S.L

. 199

5, c

h. 4

43, §

16;

199

7, c

h. 3

96, §

2.

48-0

1.1-

05. C

onte

nts

of a

dver

tise-

men

t. T

he a

dver

tisem

ent f

or b

ids

requ

ired

by s

ectio

n 48

-01.

1-03

mus

t sta

te:

1. W

hen

and

whe

re th

e pl

ans,

dra

w-

ings

, and

spe

cifi

catio

ns m

ay b

e se

enan

d ex

amin

ed.

2. T

he p

lace

, dat

e, a

nd ti

me

the

bids

will

be

open

ed.

3. T

hat e

ach

bid

mus

t be

acco

mpa

nied

by a

sep

arat

e en

velo

pe c

onta

inin

g a

bidd

er's

bon

d in

a s

um e

qual

to f

ive

perc

ent o

f th

e fu

ll am

ount

of

the

bid,

exe

cute

d by

the

bidd

er a

s pr

in-

cipa

l and

by

a su

rety

, con

ditio

ned

that

if th

e pr

inci

pal's

bid

is a

ccep

ted

and

the

cont

ract

aw

arde

d to

the

prin

cipa

l, th

e pr

inci

pal,

with

in te

nda

ys a

fter

not

ice

of a

war

d, s

hall

exec

ute

a co

ntra

ct in

acc

orda

nce

with

the

term

s of

the

bid

and

aco

ntra

ctor

's b

ond

as r

equi

red

byla

w a

nd th

e re

gula

tions

and

det

er-

min

atio

ns o

f th

e go

vern

ing

body

.C

ount

ersi

gnat

ure

of a

bid

bon

d is

not r

equi

red

unde

r th

is s

ectio

n.4.

Tha

t a b

idde

r, e

xcep

t a b

idde

r on

am

unic

ipal

,ru

ral,

and

indu

stri

alw

ater

sup

ply

proj

ect a

utho

rize

d fo

rfu

ndin

g un

der

Publ

ic L

aw N

o. 9

9-29

4 11

00 S

tat.

426;

43

U.S

.C. 3

90al

,m

ust b

e lic

ense

d fo

r th

e fu

ll am

ount

of th

e bi

d, a

s re

quir

ed b

y se

ctio

n43

-07-

05. F

or p

roje

cts

auth

oriz

edfo

r fu

ndin

g un

der

Publ

ic L

aw N

o.99

-294

110

0 St

at. 4

26; 4

3 U

.S.C

.39

0a1,

the

adve

rtis

emen

t mus

tst

ate

that

, unl

ess

a bi

dder

obt

ains

aco

ntra

ctor

'slic

ense

for

the

full

I 65

PUB

LIC

BU

ILD

ING

S

amou

nt o

f its

bid

with

in tw

enty

days

aft

er it

is d

eter

min

ed th

e bi

d-de

r is

the

low

est a

nd b

est b

idde

r,th

e bi

d m

ust b

e re

ject

ed a

nd th

eco

ntra

ct a

war

ded

to th

e ne

xt lo

w-

est,

best

, and

lice

nsed

bid

der.

5. T

hat n

o bi

d m

ay b

e re

ad o

r co

nsid

-er

ed if

it d

oes

not f

ully

com

ply

with

the

requ

irem

ents

of

this

sec

tion

and

that

any

def

icie

nt b

id s

ubm

itted

mus

t be

rese

aled

and

ret

urne

d to

the

bidd

er im

med

iate

ly.

6. T

hat t

he r

ight

of

the

gove

rnin

gbo

dy to

rej

ect a

ny b

id is

res

erve

d.So

urce

: S.L

. 199

6, c

h. 4

43, §

16.

48-0

1.1-

08. B

id r

equi

rem

ents

for

publ

ic b

uild

ings

. Mul

tiple

pri

me

bids

for

the

gene

ral,

elec

tric

al, a

nd m

echa

nica

l por

-tio

ns o

f a

proj

ect a

re r

equi

red

whe

n an

yin

divi

dual

gen

eral

, ele

ctri

cal,

or m

echa

ni-

cal c

ontr

act i

s in

exc

ess

of o

ne h

undr

edth

ousa

nd d

olla

rs. T

he g

over

ning

bod

y m

ayal

so a

llow

sub

mis

sion

of

sing

le p

rim

e bi

dsor

bid

s fo

r ot

her

port

ions

of

the

proj

ect a

tits

dis

cret

ion.

The

gov

erni

ng b

ody

may

not

acce

pt th

e si

ngle

pri

me

bid

unle

ss th

at b

idis

low

er th

an th

e co

mbi

ned

tota

l of

the

low

est a

nd b

est m

ultip

le b

ids

for

the

proj

ect.

Sour

ce: S

.L. 1

996,

ch.

443

, § 1

6; 1

997,

ch.

397

, § 1

.

48-0

1.1-

07. O

peni

ng o

f bi

ds -

Aw

ard

of c

ontr

act.

At t

he ti

me

and

plac

esp

ecif

ied

in th

e no

tice,

the

gove

rnin

g bo

dysh

all o

pen

publ

icly

and

rea

d al

oud

all b

ids

rece

ived

and

ther

eaft

er a

war

d th

e co

ntra

ctto

the

low

est a

nd b

est b

idde

r or

rej

ect a

llbi

ds. T

he g

over

ning

bod

y m

ay a

dver

tise

for

new

bid

s in

acc

orda

nce

with

this

cha

pter

until

a s

atis

fact

ory

bid

is r

ecei

ved.

The

gove

rnin

g bo

dy s

hall

requ

ire

the

cont

ract

orto

who

m th

e co

ntra

ct is

aw

arde

d to

pos

t abo

nd in

acc

orda

nce

with

cha

pter

48-

02.

Sour

ce: S

.L. 1

995,

th. 4

43, §

16.

48-0

1.1-

08. C

oord

inat

ion

of w

ork

unde

r m

ultip

le p

rim

e bi

ds. A

fter

com

-pe

titiv

e bi

ds f

or th

e ge

nera

l, el

ectr

ical

, and

mec

hani

cal w

ork

are

rece

ived

as

part

of

the

mul

tiple

pri

me

bids

, the

gov

erni

ng b

oard

may

ass

ign

the

elec

tric

al a

nd m

echa

nica

lco

ntra

ct a

nd a

ny o

ther

con

trac

ts to

the

gene

ral c

ontr

acto

r fo

r th

e pr

ojec

t to

faci

li-ta

te th

e co

ordi

natio

n an

d m

anag

emen

t of

the

wor

k on

ly.

Sour

ce: S

.L. 1

995,

ch.

443

, § 1

6.

48-0

1.1-

09. U

seof

cons

truc

tion

man

ager

. If

a go

vern

ing

body

use

s a

con-

66

stru

ctio

n m

anag

er o

n a

publ

ic im

prov

e-m

ent,

the

cons

truc

tion

man

ager

mus

t be

alic

ense

d co

ntra

ctor

. A c

onst

ruct

ion

man

-ag

er a

war

ded

a co

ntra

ct f

or c

onst

ruct

ion

ofa

publ

ic im

prov

emen

t sha

ll bo

nd th

e en

tire

cost

of

the

proj

ect t

hrou

gh a

sin

gle

bond

, or

thro

ugh

bond

s su

ppor

ting

all b

id p

acka

ges

and

the

cons

truc

tion

man

ager

's b

ond

for

the

full

amou

nt o

f th

e co

nstr

uctio

n m

anag

-er

's s

ervi

ces.

Sour

ce: S

.L. 1

997,

ch.

394

, § 2

.

CO

NST

RU

CT

ION

48-0

2-01

.D

efin

ition

of

gove

rnin

gbo

ard.

Rep

eale

d by

S.L

. 199

5, c

h. 4

43,

§ 29

. 48-0

2-02

.Pr

ereq

uisi

te to

bui

ldin

gan

d re

pair

by

cont

ract

- E

xcep

tions

.R

epea

led

by S

.L. 1

995,

ch.

443

, * 2

9.

48-0

2-03

. Met

hod

used

in s

ecur

-in

g bi

ds -

Em

erge

ncy

wai

ver.

Re-

peal

ed b

y S.

L. 1

995,

ch.

443

, * 2

9.

48-0

2-04

. Con

tent

s of

adv

ertis

e-m

ent.

Rep

eale

d by

S.L

. 199

5, c

h. 4

43,

* 29

. 48-0

2-05

. Pla

nsan

dsp

ecif

ica-

tions

- P

lace

of

filin

g. R

epea

led

by S

.L.

1995

, ch.

443

, § 2

9.

48-0

2-05

.1.

Bid

req

uire

men

ts a

ndac

cept

ance

. Rep

eale

d by

S.L

. 199

5, c

h.44

3, §

29.

48-0

2-06

. Ope

ning

bid

s -

Aw

ard

of c

ontr

act -

Bon

d re

quir

ed. R

epea

led

by S

.L. 1

995,

ch.

443

, * 2

9.

48-0

2 -0

6.1.

Publ

icco

ntra

ctto

cont

ain

a fu

el c

ost l

ine

item

and

a f

uel

cost

adj

ustm

ent c

laus

e. R

epea

led

byS.

L. 1

995,

ch.

443

, § 2

9.

48-0

2 -0

6.2.

Bon

ds f

rom

con

trac

-to

rs f

or p

ublic

Im

prov

emen

ts. A

gov

-er

ning

bod

y, a

s de

fine

d in

sec

tion

48 -

01.1

-01

, aut

hori

zed

to e

nter

into

a c

ontr

act f

orco

nstr

uctio

n of

a p

ublic

impr

ovem

ent i

nex

cess

of

one

hund

red

thou

sand

dol

lars

shal

l tak

e fr

om th

e co

ntra

ctor

a b

ond

be-

fore

per

mitt

ing

any

wor

k to

be

done

on

that

cont

ract

. The

bon

d m

ust b

e fo

r an

am

ount

equa

l at l

east

to th

e pr

ice

stat

ed in

the

cont

ract

. The

bon

d m

ust b

e co

nditi

oned

tobe

voi

d if

the

cont

ract

or a

nd a

ll su

bcon

trac

-to

rs f

ully

per

form

all

term

s, c

ondi

tions

, and

NO

RT

H D

AK

OT

A C

EN

TU

RY

SC

HO

OL

CO

LE

- E

XC

ER

PTS

prov

isio

ns o

f th

e co

ntra

ct a

nd p

ay a

ll bi

llsor

cla

ims

on a

ccou

nt o

f la

bor

and

mat

eria

lsin

clud

ing

supp

lies

used

for

mac

hine

ry a

ndeq

uipm

ent,

perf

orm

ed, f

urni

shed

, and

use

din

the

perf

orm

ance

of

the

cont

ract

, inc

lud-

ing

all d

eman

ds o

f su

bcon

trac

tors

. The

requ

irem

ent t

hat b

ills

and

clai

ms

be p

aid

mus

t inc

lude

the

requ

irem

ent t

hat i

nter

est

of th

e am

ount

aut

hori

zed

unde

r se

ctio

n13

-01-

14 b

e pa

id o

n bi

lls a

nd c

laim

s no

tpa

id w

ithin

nin

ety

days

. The

bon

d is

sec

u-ri

ty f

or a

ll bi

lls, c

laim

s, a

nd d

eman

ds u

ntil

fully

pai

d, w

ith p

refe

renc

e to

labo

r an

dm

ater

ial s

uppl

iers

as

to p

aym

ent.

The

bon

dm

ust r

un to

the

gove

rnin

g bo

dy, b

ut a

nype

rson

hav

ing

a la

wfu

l cla

im a

gain

st th

eco

ntra

ctor

, or

any

subc

ontr

acto

r, a

s pr

o-vi

ded

in th

is c

hapt

er, m

ay s

ue o

n th

e bo

nd.

Sour

ce: S

.L. 1

995,

ch.

443

, § 1

7; 1

997,

ch.

398

, §1.

48-0

2-10

.1. A

dver

tisin

g fo

r bi

ds.

Adv

ertis

emen

t for

bid

s fo

r su

ch m

ater

ials

as a

re p

rodu

ced

in N

orth

Dak

ota

mus

t be

mad

e in

acc

orda

nce

with

cha

pter

48-

01.1

,an

d m

ay b

e in

clud

ed a

s a

part

of

any

adve

rtis

emen

t for

oth

er it

ems

of th

e im

-pr

ovem

ent.

Eac

h bi

d fo

r fu

rnis

hing

mat

e-ri

als

prod

uced

in th

is s

tate

mus

t con

tain

the

bidd

er's

cer

tific

ate

as to

whe

re th

epr

oduc

t is

foun

d, p

rodu

ced,

or

man

ufac

-tu

red

in th

is s

tate

.So

urce

: S.L

. 195

3, c

h. 2

82, §

2; R

.C. 1

943,

195

7Su

pp.,

§ 48

-021

01; S

.L. 1

995,

ch.

443

, § 1

8.

48-0

2-13

. Arc

hite

cts

and

engi

neer

s-

Dut

ies.

The

gov

erni

ng b

ody

shal

l em

-pl

oy th

e ar

chite

ct o

r en

gine

er f

urni

shin

gth

e pl

ans

as p

rovi

ded

in th

is c

hapt

er, o

rso

me

othe

r qu

alif

ied

pers

on to

pro

vide

con

-st

ruct

ion

adm

inis

trat

ion

and

cons

truc

tion

obse

rvat

ion

serv

ices

for

whi

ch th

e pl

ans

and

spec

ific

atio

ns a

re p

repa

red,

as

pro-

vide

d by

sec

tion

48-0

1.1-

04. T

he a

rchi

tect

or e

ngin

eer

shal

l see

that

suc

h co

ntra

ctor

perf

orm

s th

e w

ork

in c

ompl

ianc

e w

ith th

epl

ans

and

spec

ific

atio

ns. T

he a

rchi

tect

or

engi

neer

is e

ntitl

ed to

rec

eive

a r

easo

nabl

eco

mpe

nsat

ion

to b

e fi

xed

by th

e go

vern

ing

body

. The

dut

ies

impo

sed

and

pow

ers

con-

ferr

ed u

pon

the

gove

rnin

g bo

dy b

y th

isch

apte

r ap

ply

to a

ny s

ucce

ssor

to th

e go

v-er

ning

bod

y.So

urce

: S.L

. 191

1, c

h. 2

35, §

11:

C.L

. 191

3, §

18.

38;

S.L

. 192

9, c

h. 1

95, §

11;

R.C

. 194

3, §

48-

0213

; S.L

.19

95, c

h. 4

43, §

19.

48-0

2-15

. Cla

im f

or w

ork

or im

-pr

ovem

ent -

Sui

t on

cont

ract

or's

bond

. Any

per

son

who

has

fur

nish

ed la

bor

or m

ater

ial f

or a

ny w

ork

or im

prov

emen

t

BE

ST

CO

PY

AV

AIL

AB

LE

for

this

sta

te, a

ny o

f its

dep

artm

ents

, or

any

scho

ol d

istr

ict,

city

, cou

nty,

or

tow

nshi

pin

the

stat

e in

res

pect

of

whi

ch a

bon

d is

furn

ishe

d un

der

this

cha

pter

and

who

has

not b

een

paid

in f

ull w

ithin

nin

ety

days

afte

r co

mpl

etio

n of

the

cont

ribu

tion

of la

bor

or m

ater

ials

, may

sue

on

the

bond

for

the

amou

nt u

npai

d at

the

time

of in

stitu

tion

ofsu

it. H

owev

er, a

ny p

erso

n ha

ving

a d

irec

tco

ntra

ctua

l rel

atio

nshi

p w

ith a

sub

cont

rac-

tor,

but

no

cont

ract

ual r

elat

ions

hip

with

the

cont

ract

or f

urni

shin

g th

e bo

nd, d

oes

not h

ave

a cl

aim

for

rel

ief

upon

the

bond

unle

ss th

at p

erso

n ha

s gi

ven

wri

tten

notic

eto

the

cont

ract

or, w

ithin

nin

ety

days

fro

mth

e da

te o

n w

hich

the

pers

on c

ompl

eted

the

cont

ribu

tion,

sta

ting

with

sub

stan

tial a

c-cu

racy

the

amou

nt c

laim

ed a

nd th

e na

me

of th

e pe

rson

for

who

m th

e co

ntri

butio

nw

as p

erfo

rmed

. Eac

h no

tice

mus

t be

serv

edby

reg

iste

red

mai

l, po

stag

e pr

epai

d, in

an

enve

lope

add

ress

ed to

the

cont

ract

or a

t any

plac

e th

e co

ntra

ctor

mai

ntai

ns a

n of

fice

,co

nduc

ts b

usin

ess,

or

has

a re

side

nce.

The

con

trac

ting

body

and

the

agen

t in

char

ge o

f its

off

ice

are

auth

oriz

ed a

nd d

i-re

cted

to f

urni

sh a

cer

tifie

d co

py o

f th

ebo

nd a

nd th

e co

ntra

ct f

or w

hich

it w

asgi

ven

to a

nyon

e m

akin

g an

app

licat

ion

ther

efor

who

sub

mits

an

affi

davi

t tha

t ei-

ther

the

pers

on h

as s

uppl

ied

labo

r or

ma-

teri

als

for

such

wor

k or

impr

ovem

ent a

ndth

at p

aym

ent h

as n

ot b

een

mad

e, o

r th

atth

e pe

rson

is b

eing

sue

d on

the

bond

.A

pplic

ants

sha

ll pa

y th

e ac

tual

cos

t of

the

prep

arat

ion

of th

e ce

rtif

ied

copy

of

the

bond

and

the

cont

ract

. The

cer

tifie

d co

py o

f th

ebo

nd is

pri

ma

faci

e ev

iden

ce o

f th

e co

n-te

nts,

exe

cutio

n, a

nd d

eliv

ery

of th

e or

igi-

nal. So

urce

: S.L

. 193

1, c

h. 2

23, §

1; R

.C. 1

943,

§ 4

8-02

15; S

.L. 1

973,

ch.

375

, § 1

; 198

5, c

h. 8

2, §

119

;19

95, c

h. 4

43, §

20.

48-0

2-19

. Pub

lic b

uild

ings

and

fa-

cilit

ies

- St

atem

ent o

f co

mpl

ianc

ew

ithac

cess

ibili

tygu

idel

ines

.St

ate

agen

cies

and

gov

erni

ng b

odie

s of

pol

itica

lsu

bdiv

isio

ns s

hall

requ

ire

a st

atem

ent

from

any

per

son

prep

arin

g th

e pl

ans

and

spec

ific

atio

ns f

or a

pub

lic b

uild

ing

or f

acil-

ity th

at, i

n th

e pr

ofes

sion

al ju

dgm

ent o

fth

at p

erso

n, th

e pl

ans

and

spec

ific

atio

nsar

e in

con

form

ance

with

the

Am

eric

ans

with

Dis

abili

ties

Act

Acc

essi

bilit

y G

uide

-lin

es f

or B

uild

ings

and

Fac

ilitie

s as

con

-ta

ined

in th

e ap

pend

ix to

title

28,

Cod

e of

Fede

ral R

egul

atio

ns, p

art 3

6 12

8 C

FR 3

61,

subj

ect t

o th

e ex

cept

ion

stat

ed in

sec

tion

54-2

1.3-

04.1

.So

urce

: S.L

. 197

3, c

h. 3

76, §

1; 1

975,

ch.

428

, § 1

;19

77, c

h. 3

30, §

2; 1

979,

ch.

493

, § 1

; 198

3, c

h. 5

11,

67

48-0

2-07

. Allo

wan

ce a

nd p

aym

ent

of e

stim

ates

- I

nves

tmen

t of

reta

in-

age.

At l

east

onc

e in

eac

h ca

lend

ar m

onth

duri

ng th

e co

ntin

uanc

e of

wor

k up

on a

nypu

blic

bui

ldin

g or

ere

ctio

n be

gun

and

car-

ried

on

unde

r th

e pr

ovis

ions

of

this

cha

p-te

r, th

e go

vern

ing

boar

d, o

r a

com

mitt

eeth

ereo

f du

ly a

utho

rize

d by

the

boar

d fo

rth

at p

urpo

se, s

hall

mee

t and

rec

eive

and

cons

ider

est

imat

es f

urni

shed

by

the

supe

r-vi

sing

arc

hite

ct o

r th

e su

peri

nten

dent

of

cons

truc

tion

of s

uch

build

ing

or e

rect

ion,

and

shal

l allo

w s

uch

estim

ates

in a

nam

ount

of

the

estim

ated

val

ue o

f th

e la

bor

and

mat

eria

l fur

nish

ed u

pon

such

con

-tr

act,

and

of th

e m

ater

ial t

hen

upon

the

grou

nd f

or u

se in

the

cons

truc

tion

ther

eof,

subj

ect t

o re

tent

ions

as

follo

ws:

ten

perc

ent

of e

ach

estim

ate

pres

ente

d un

til s

uch

time

as th

e pr

ojec

t is

fift

y pe

rcen

t com

plet

ed,

with

no

furt

her

reta

inag

e on

est

imat

esdu

ring

the

cont

inua

nce

of th

e co

ntra

ct.

The

gov

erni

ng b

oard

may

, how

ever

,up

onco

mpl

etio

n of

nin

ety-

five

per

cent

of

the

cont

ract

acc

ordi

ng to

the

estim

ates

, pay

toth

e co

ntra

ctor

nin

ety-

five

per

cent

of

the

amou

nt r

etai

ned

from

pre

viou

s es

timat

es.

The

rem

aini

ng a

mou

nt r

etai

ned

shal

l be

paid

to th

e co

ntra

ctor

in s

uch

amou

nts

and

at s

uch

times

as

are

appr

oved

by

the

su-

perv

isin

g ar

chite

ct o

r su

peri

nten

dent

of

cons

truc

tion,

with

fin

al p

aym

ent o

f al

lm

oney

s du

e to

the

cont

ract

or to

be

mad

eim

med

iate

ly f

ollo

win

g co

mpl

etio

n an

d ac

-ce

ptan

ce o

f th

e pr

ojec

t. If

no

supe

rvis

ing

arch

itect

and

no

supe

rint

ende

nt o

f co

n-st

ruct

ion

is e

mpl

oyed

upo

n su

ch c

ontr

act,

the

cont

ract

or, a

t the

end

of

each

cal

enda

rm

onth

dur

ing

the

cont

inua

nce

of w

ork

un-

der

any

such

con

trac

t, m

ay f

urni

sh to

suc

hbo

ard

or p

ublic

bod

y in

cha

rge

of s

uch

wor

k lik

e es

timat

es w

hich

sha

ll be

allo

wed

in li

ke m

anne

r. S

aid

boar

d or

com

mitt

eeth

ereo

f, im

med

iate

ly a

fter

con

side

ring

and

allo

win

g an

y su

ch e

stim

ate,

sha

ll ce

rtif

yan

d fo

rwar

d th

e sa

me

to th

e st

ate

audi

tor,

coun

ty a

udito

r, c

ity a

udito

r, o

r ot

her

offi

-ci

al h

avin

g th

e po

wer

to d

raw

war

rant

s,w

ho f

orth

with

sha

ll dr

aw h

is w

arra

ntup

on th

e pr

oper

fun

d an

d tr

ansm

it th

esa

me

prom

ptly

to th

e co

ntra

ctor

ent

itled

ther

eto.

On

the

amou

nts

of e

stim

ates

re-

tain

ed, a

s pr

ovid

ed h

erei

n, th

e go

vern

ing

boar

d, a

utho

rize

d co

mm

ittee

, or

publ

icbo

dy in

cha

rge

of s

uch

wor

k m

ay in

vest

, or

depo

sit s

aid

reta

ined

am

ount

s in

any

fi-

nanc

ial a

ssoc

iatio

n or

inst

itutio

n in

Nor

th

68

Dak

ota,

so

that

the

cont

ract

or's

mon

ey w

illbe

ear

ning

inte

rest

or

divi

dend

s fo

r th

ebe

nefi

t of

the

cont

ract

or. A

ny a

mou

nts

soin

vest

ed o

r de

posi

ted

shal

l rem

ain

in th

ena

me

of th

e go

vern

ing

boar

d, a

utho

rize

dco

mm

ittee

, or

publ

ic b

ody

in c

harg

e of

such

wor

k un

tilfi

nal p

aym

ent o

f al

lm

oney

due

to th

e co

ntra

ctor

is to

be

mad

e.Fu

rthe

r, n

o co

ntra

ctor

sha

ll us

e su

ch a

c-co

unt i

n an

y m

anne

r w

hats

oeve

r un

til r

e-le

ased

and

rec

eive

d by

him

upo

n co

mpl

e-tio

n of

the

cont

ract

.

Sour

ce: S

.L. 1

911,

ch.

235

, § 5

; C.L

. 191

3, §

183

3;S.

L. 1

929,

ch.

195

,1 5

; 193

7, c

h. 1

11, 1

1; R

.C. 1

943,

1 48

-020

7; S

.L. 1

959,

ch.

341

, § 1

; 197

1, c

h. 4

56, §

1;

1975

, ch.

427

, § 1

.

48-0

2-08

.E

stim

ate

- Fa

ilure

toce

rtif

y -

Rat

e of

inte

rest

. In

case

the

boar

d or

com

mitt

ee m

entio

ned

in s

ectio

n48

-02-

07 s

hall

fail

or n

egle

ct to

cer

tify

any

estim

ate

allo

wed

or

fina

l pay

men

t upo

nco

mpl

etio

n an

d ac

cept

ance

, or

the

prop

erof

fici

al s

hall

negl

ect o

r fa

il to

issu

e a

war

-ra

nt a

s pr

ovid

ed in

sec

tion

48-0

2-07

, for

a -

peri

od o

f m

ore

than

thir

ty d

ays

from

the

date

of

such

est

imat

e or

com

plet

ion

date

,th

en s

aid

estim

ate

or f

inal

pay

men

t sha

lldr

aw in

tere

st f

rom

its

date

at t

he r

ate

per

annu

m o

f tw

o pe

rcen

tage

poi

nts

belo

w th

eB

ank

of N

orth

Dak

ota

prim

e in

tere

st r

ate

as s

et th

irty

day

s fr

om th

e da

te o

f su

ches

timat

e or

com

plet

ion

date

unt

il th

e is

su-

ance

of

a pr

oper

war

rant

ther

efor

. Suc

hin

tere

st s

hall

be c

ompu

ted

and

adde

d to

the

face

of

said

est

imat

e or

fin

al p

aym

ent

by th

e of

fice

r re

quir

ed to

issu

e su

ch w

ar-

rant

, sha

ll be

incl

uded

in th

e w

arra

ntw

hen

draw

n, a

nd s

hall

be c

harg

ed to

the

fund

upo

n w

hich

pay

men

t for

the

cont

ract

is to

be

mad

e. N

o pa

ymen

t for

, or

on a

c-co

unt o

f, a

ny c

ontr

act m

ade

unde

r th

e pr

o-vi

sion

s of

this

cha

pter

sha

ll be

mad

e ex

-ce

pt u

pon

estim

ate

of th

e su

perv

isin

g ar

-ch

itect

or

supe

rint

ende

nt o

f co

nstr

uctio

nor

cont

ract

oras

prov

ided

inse

ctio

n48

-02-

07.

Sour

ce: S

.L. 1

911,

ch.

235

, § 5

; C.L

. 191

3, §

183

3;S.

L. 1

929,

ch.

195

, § 5

; 193

7, c

h. 1

11, §

1; R

.C. 1

943,

§ 48

-020

8; S

.L. 1

971,

ch.

456

,1 2

; 198

1, c

h. 4

67, §

2.

48-0

2-09

.A

ppro

pria

tions

not

to b

edi

vert

ed. N

o po

rtio

n of

any

spe

cial

app

ro-

pria

tion

for

the

erec

tion

of a

ny b

uild

ing

orim

prov

emen

t, or

for

the

doin

g of

any

wor

k,sh

all b

e dr

awn

from

the

stat

e tr

easu

ry in

adva

nce

of th

e w

ork

done

or

of m

ater

ials

furn

ishe

d. T

he s

ame

shal

l be

draw

n on

lyup

on p

rope

r es

timat

es th

ereo

f ap

prov

ed b

yth

e su

perv

isin

g ag

ency

or

the

boar

d of

NO

RT

H D

AK

OT

A C

EN

TU

RY

high

er e

duca

tion,

whi

chev

er is

the

gove

rn-

ing

body

of

the

inst

itutio

n fo

r w

hich

the

build

ing

is b

eing

ere

cted

. No

port

ion

ofan

y ap

prop

riat

ion

for

any

purp

ose

shal

lbe

draw

n fr

om th

e tr

easu

ry b

efor

e it

shal

l be

requ

ired

for

the

purp

ose

for

whi

ch it

ism

ade.

and

no

appr

opri

atio

n w

hich

is o

rm

ay h

e m

ade

for

any

purp

ose

with

res

pect

to s

uch

cons

truc

tion

or im

prov

emen

t sha

llhe

dra

wn

or u

sed

for

any

othe

r pu

rpos

eun

til th

e co

nstr

uctio

n or

impr

ovem

ent f

orw

hich

suc

h ap

prop

riat

ion

was

mad

e is

fully

com

plet

ed a

nd p

aid

for.

Sour

ce: S

.L. 1

911,

ch.

235

, 1 6

; C.L

. 191

3, §

183

4;S.

I,.

1929

, ch.

195

, 1 6

; R.C

. 194

3, /

48-0

209;

S.L

.19

91, c

h. 5

92, §

15.

48-0

2-10

.M

ater

ial

prod

uced

inst

ate

give

n pr

efer

ence

for

use

in p

ublic

build

ings

. All

boar

ds o

r co

mm

issi

ons

pur-

chas

ing

mat

eria

l for

use

in m

akin

g al

ter-

atio

ns, r

epai

rs, o

r ad

ditio

ns, o

r in

ere

ctin

gne

w b

uild

ings

, and

all

cont

ract

ors

mak

ing

such

alte

ratio

ns, r

epai

rs, o

r ad

ditio

ns, o

rer

ectin

g ne

w b

uild

ings

or

impr

ovem

ents

ther

ewith

or

pert

aini

ng th

eret

o, a

lway

s,pr

ice

and

qual

ity b

eing

equ

al o

r be

tter,

shal

l pur

chas

e m

ater

ials

man

ufac

ture

d or

prod

uced

with

in th

is s

tate

and

, nex

t, pu

r-ch

ase

such

as

have

bee

n m

anuf

actu

red

orpr

oduc

ed in

par

t in

Nor

th D

akot

a.

Sour

ce: S

.L. 1

955,

ch.

295

,R

.C. 1

943,

195

7Su

pp..

§ 48

-021

0.

-02-

10.1

.A

dver

tisin

g fo

r bi

ds.

Adv

erem

ent f

or b

ids

for

such

mat

er I

sas

are

pr

ced

in N

orth

Dak

ota

bem

ade

inco

rdan

cew

itse

ctio

ns48

-02-

03, 4

8-02

-an

d 48

-5,

and

may

be in

clud

ed a

s a

par

adve

rtis

emen

tfo

r ot

her

item

s of

t.

ivem

ent.

Eac

hbi

d fo

r fu

rnis

him

ater

iaod

ucen

dtai

inn

Nor

th D

akot

all h

e re

quir

edth

e hi

dde

'ce

rtif

icat

e as

to w

here

e

prod

ucs

foun

d, p

rodu

ced,

or

man

ufac

-tu

red

in th

e st

ate

of N

orth

Dak

ota.

Sour

ce: S

.L. 1

953,

ch.

282

. § 2

; R.C

. 194

3, 1

957

Stip

p..

48-0

2101

.

48-0

2-10

.2.

Ope

ning

bid

s, a

war

dof

con

trac

ts, p

refe

renc

e fo

r na

tive

prod

ucts

. At t

he ti

me

and

plac

e sp

ecif

ied

in th

e no

tice

the

gove

rnin

g bo

dy s

hall

open

publ

icly

and

rea

d al

oud

all b

ids

rece

ived

and

may

rej

ect a

ll bi

ds o

r aw

ard

the

con-

trac

t to

the

low

est a

nd b

est b

idde

r. I

f th

ere

be o

ne o

r m

ore

bids

for

fur

nish

ing

mat

e-ri

als,

pro

duct

s an

d su

pplie

s w

hich

are

foun

d, p

rodu

ced

or m

anuf

actu

red

with

in

BE

ST

CO

PY

AV

AIL

AB

LE

SCI

tool

, Col

IF,

the

stat

e of

Nor

th D

akot

a fr

om n

ativ

e na

t.or

al r

esou

rces

, the

low

est.

of s

uch

shal

l he

pref

erre

d ov

er a

ny b

ids

for

fur.

-ni

shin

g su

ch m

ater

ials

, pro

duct

s, a

nd s

up-

plie

s w

hich

are

not

. fou

nd, p

rodu

ced

orm

anuf

actu

red

in N

orth

Dak

ota

from

na.

Liv

e na

tura

l res

ourc

es, u

nles

s th

e ac

cept

_in

g of

suc

h lo

wes

t. bi

d w

ould

res

ult,

in th

efu

rnis

hing

of

mat

eria

l whi

ch c

ould

not

, he

supp

lied

in s

uffi

cien

t qua

ntiti

es to

mee

tth

e ne

eds

of th

e pu

rcha

ser

or o

f a

qual

ityw

hich

is n

ot a

t lea

st. e

qual

to o

ut-o

f-st

ate

prod

ucts

whe

n te

sted

by

reco

gniz

ed n

a-tio

nal s

tand

ards

of

the

indu

stry

, in

whi

chth

e pr

oduc

er o

f th

e m

ater

ial o

ffer

ed is

en-

gage

d, a

nd if

suc

h N

orth

Dak

ota

prod

ucts

are

not h

ighe

r in

pri

ce th

an th

e no

n-N

orth

Dak

ota

prod

uct,

or n

ot p

rice

d in

cons

iste

ntw

ith th

e va

lue

ther

eof.

If

the

bid

of th

eN

orth

Dak

ota

supp

lier

is r

ejec

ted

as n

otbe

ing

of q

ualit

y at

leas

t equ

al to

out

-of-

stat

e pr

oduc

ts, t

he r

easo

n w

hy s

uch

Nor

thD

akot

a m

ater

ials

, pro

duct

s an

d su

pplie

sar

e no

t rea

sona

bly

equa

l to

the

out-

of-s

tate

prod

ucts

und

er r

ecog

nize

d st

anda

rds

of th

ein

dust

ry s

hall

be r

educ

ed to

wri

ting,

mad

ea

mat

ter

of r

ecor

d, a

nd b

e fu

rnis

hed

to th

eN

orth

Dak

ota

bidd

ers.

Sour

ce: S

.L. 1

953,

ch.

282

, § 3

: R.C

. 194

3, 1

957

Supp

., / 4

8-02

102.

48-0

2-10

.3.

Vio

latio

ns -

Rem

edy.

Any

con

trac

t ent

ered

into

or

carr

ied

out i

nvi

olat

ion

of th

e pr

ovis

ions

of

sect

ions

48-0

2-10

, 48-

02-1

0.1,

and

48-

02-1

0.2

shal

lbe

voi

d to

the

full

exte

nt o

f its

pro

visi

ons

rela

ting

to N

orth

Dak

ota

prod

ucts

and

any

such

con

trac

t or

purc

hase

ord

er s

hall

heun

enfo

rcea

ble

in a

ny c

ourt

.A

ny p

erso

n w

ho s

hall

have

sub

mitt

eda

bid

shal

l hav

e th

e ri

ght t

o m

aint

ain

anac

tion

in e

quity

to p

reve

nt th

e vi

olat

ion

ofth

e te

rms

of s

ectio

ns 4

8-02

-10,

48-

02-1

0.1,

and

48-0

2-10

.2 w

ithin

fif

teen

day

s af

ter

the

letti

ng o

f th

e co

ntra

ct.

Sour

ce: S

.L. 1

953.

ch.

282

, § 4

; R.C

. 194

3, 1

957

Supp

., §

48-0

2103

.

69

JOIN

T P

OW

ER

S A

GR

EE

ME

NT

54-4

0.3-

01. J

oint

pow

ers

agre

e-m

ents

Gen

eral

aut

hori

ty.

1. A

ny c

ount

y, c

ity,

tow

nshi

p, c

itypa

rk d

istr

ict,

scho

oldi

stri

ct, o

rot

her

polit

ical

sub

divi

sion

of

this

stat

e, u

pon

appr

oval

of

its r

espe

c-tiv

e go

vern

ing

body

, may

ent

er in

toan

agr

eem

ent w

ith a

ny o

ther

pol

iti-

cal s

ubdi

visi

on o

f th

is s

tate

for

the

coop

erat

ive

or jo

int a

dmin

istr

atio

nof

any

pow

er o

r fu

nctio

n th

at is

auth

oriz

ed b

y la

w o

r as

sign

ed to

one

or m

ore

of th

em. A

ny p

oliti

cal

subd

ivis

ion

of th

is s

tate

may

ent

erin

to a

join

t pow

ers

agre

emen

t with

a po

litic

al s

ubdi

visi

on o

f an

othe

rst

ate

or p

oliti

cal s

ubdi

visi

on o

f a

Can

adia

n pr

ovin

ce if

the

pow

er o

rfu

nctio

n to

be

join

tly a

dmin

iste

red

is a

pow

er o

r fu

nctio

n au

thor

ized

by

the

law

s of

this

sta

te f

or a

pol

itica

lsu

bdiv

isio

n of

this

sta

te a

nd is

au-

thor

ized

by

the

law

s of

the

othe

rst

ate

or p

rovi

nce.

A jo

int p

ower

sag

reem

ent m

ay p

rovi

de f

or:

a. T

he p

urpo

se o

f th

e ag

reem

ent o

rth

e po

wer

or

func

tion

to b

e ex

er-

cise

d or

car

ried

out

.b.

The

dur

atio

n of

the

agre

emen

tan

d th

e pe

rmis

sibl

e m

etho

d to

be e

mpl

oyed

in a

ccom

plis

hing

the

part

ial o

r co

mpl

ete

term

ina-

tion

of th

e ag

reem

ent a

nd f

ordi

spos

ing

of a

ny p

rope

rty

upon

the

part

ial o

r co

mpl

ete

term

ina-

tion.

c. T

he p

reci

se o

rgan

izat

ion,

com

po-

sitio

n, a

nd n

atur

e of

any

sep

a-ra

te a

dmin

istr

ativ

e or

lega

l en-

tity,

incl

udin

g an

adm

inis

trat

oror

a jo

int b

oard

, com

mitt

ee, o

rjo

int s

ervi

ce c

ounc

il or

net

wor

k,re

spon

sibl

efo

rad

min

iste

ring

the

coop

erat

ive

or jo

int u

nder

-ta

king

. Tw

o or

mor

e po

litic

alsu

bdiv

isio

ns w

hich

ent

er in

to a

num

ber

of jo

int p

ower

s ag

ree-

men

ts m

ay p

rovi

de a

mas

ter

ad-

min

istr

ativ

e st

ruct

ure

for

the

join

t adm

inis

trat

ion

of a

ny n

um-

ber

of th

ose

agre

emen

ts, r

athe

rth

an c

reat

ing

sepa

rate

adm

inis

-tr

ativ

e st

ruct

ures

for

eac

h ag

ree-

men

t. H

owev

er, n

o es

sent

ial l

eg-

isla

tive

pow

ers,

taxi

ngau

thor

ity, o

r em

inen

t dom

ain

pow

er m

ay b

e de

lega

ted

by a

nag

reem

ent t

o a

sepa

rate

adm

in-

istr

ativ

e or

lega

l ent

ity.

/0B

ES

T C

OP

Y A

VA

ILA

BLE

NO

RT

H D

AK

OT

A C

EN

TU

RY

SC

HO

OL

CO

DE

EX

CE

RPT

S

d. T

he m

anne

r in

whi

ch th

e pa

rtie

sto

the

agre

emen

t will

fin

ance

the

coop

erat

ive

or jo

int u

nder

taki

ngan

d es

tabl

ish

and

mai

ntai

n a

budg

etfo

rth

at u

nder

taki

ng.

The

par

ties

to th

e ag

reem

ent

may

exp

end

fund

s pu

rsua

nt to

the

agre

emen

t, us

e un

expe

nded

bala

nces

of

thei

r re

spec

tive

cur-

rent

fun

ds, e

nter

into

a le

ase-

optio

n to

buy

and

con

trac

t for

deed

agr

eem

ents

bet

wee

n th

em-

selv

es a

nd w

ith p

riva

te p

artie

s,ac

cum

ulat

e fu

nds

from

yea

r to

year

for

the

prov

isio

n of

ser

vice

san

dfa

cilit

ies,

and

othe

rwis

esh

are

or c

ontr

ibut

e pr

oper

ty in

acco

rdan

ce w

ith th

e ag

reem

ent

in c

oope

rativ

ely

or jo

intly

exe

r-ci

sing

or

carr

ying

out

the

pow

eror

fun

ctio

n. T

he a

gree

men

t may

incl

ude

the

prov

isio

n of

per

son-

nel,

equi

pmen

t, or

pro

pert

y of

one

or m

ore

of th

e pa

rtie

s to

the

agre

emen

t tha

t may

be

used

in-

stea

d of

oth

er f

inan

cial

sup

port

.e.

The

man

ner

of a

cqui

ring

, hol

d-in

g, o

r di

spos

ing

of r

eal a

nd p

er-

sona

l pro

pert

y us

ed in

the

coop

-er

ativ

e or

join

t und

erta

king

.F.

The

acc

epta

nce

of g

ifts

, gra

nts,

or o

ther

ass

ista

nce

and

the

man

-ne

r in

whi

ch th

ose

gift

s, g

rant

s,or

ass

ista

nce

may

be

used

for

the

purp

oses

set

for

th in

the

agre

e-m

ent.

The

pro

cess

to a

pply

for

fed

eral

or s

tate

aid

, or

fund

s fr

om o

ther

publ

ic a

nd p

riva

te s

ourc

es, t

oth

e pa

rtie

s fo

r fu

rthe

ring

the

purp

oses

of

the

agre

emen

t.h.

The

man

ner

of r

espo

ndin

g fo

ran

y lia

bilit

y th

at m

ight

be

in-

curr

ed th

roug

h pe

rfor

man

ce o

fth

eag

reem

ent a

ndin

suri

ngag

ains

t tha

t lia

bilit

y.i.

Any

oth

er n

eces

sary

and

pro

per

mat

ters

agr

eed

upon

by

the

par-

ties

to th

e ag

reem

ent.

2. A

ny c

ount

y,ci

ty, t

owns

hip,

city

park

dis

tric

t,sc

hool

dist

rict

,or

othe

r po

litic

al s

ubdi

visi

on o

f th

isst

ate

may

ent

er in

to a

n ag

reem

ent

in th

e m

anne

r pr

ovid

ed in

sub

sec-

tion

1 w

ith a

ny a

genc

y, b

oard

, or

inst

itutio

n of

the

stat

e fo

r th

e un

-de

rtak

ing

of a

ny p

ower

or

func

tion

whi

ch a

ny o

f th

e pa

rtie

s is

per

mit-

ted

by la

w to

und

erta

ke. B

efor

e an

agre

emen

t ent

ered

into

pur

suan

t to

this

sub

sect

ion

is e

ffec

tive,

the

re-

spec

tive

gove

rnin

g bo

dy o

r of

fice

r of

g.

the

stat

e ag

ency

, boa

rd, o

r in

stitu

-tio

n m

ust a

ppro

ve th

e ag

reem

ent

and

the

atto

rney

gen

eral

mus

t de-

term

ine

that

the

agre

emen

t is

le-

gally

suf

fici

ent.

3. A

n ag

reem

ent m

ade

purs

uant

toth

is c

hapt

er d

oes

not r

elie

ve a

nypo

litic

al s

ubdi

visi

on o

r th

e st

ate

ofan

y ob

ligat

ion

or r

espo

nsib

ility

im-

pose

d by

law

exc

ept t

o th

e ex

tent

of

actu

al a

nd ti

mel

y pe

rfor

man

ce b

y a

sepa

rate

adm

inis

trat

ive

or le

gal e

n-tit

y cr

eate

d by

the

agre

emen

t. T

his

actu

al a

nd ti

mel

y pe

rfor

man

ce s

at-

isfi

es th

e ob

ligat

ion

or r

espo

nsib

il-ity

of

the

polit

ical

sub

divi

sion

.So

urce

: S.L

. 199

3, c

h. 4

01, S

49.

54-4

0.3-

02. C

lari

fica

tion

of c

onst

i-tu

tiona

l aut

hori

ty a

nd e

ffec

t of

othe

rst

atut

esC

onst

ruct

ion.

1. T

he s

peci

fici

ty o

f th

is c

hapt

er, c

hap-

ter

54-4

0, o

r an

y ot

her

law

may

not

be c

onst

rued

to li

mit

the

gene

ral

auth

ority

of

a po

litic

al s

ubdi

visi

onto

ent

er in

to a

gree

men

ts p

ursu

ant

to s

ectio

n 10

of

artic

le V

II o

f th

eC

onst

itutio

n of

Nor

th D

akot

a, e

x-ce

pt f

or s

peci

fic

limita

tions

on

that

auth

ority

, and

sub

ject

to s

peci

fic

proc

edur

al r

equi

rem

ents

, im

pose

dby

this

cha

pter

, any

oth

er la

w, o

r a

hom

e ru

le c

hart

er.

2. T

his

chap

ter

does

not

dis

pens

e w

ithth

e pr

oced

ural

req

uire

men

ts o

f an

yot

her

stat

ute

prov

idin

g fo

r th

e jo

int

or c

oope

rativ

e ex

erci

se o

f an

y go

v-er

nmen

tal p

ower

.So

urce

: S.L

. 199

3, c

h. 4

01, S

49.

54-4

0.3-

03. P

oliti

cal

subd

ivis

ions

enco

urag

ed to

file

agr

eem

ents

with

advi

sory

com

mis

sion

on

inte

rgov

ern-

men

tal r

elat

ions

. A p

oliti

cal s

ubdi

visi

onen

teri

ng in

to a

join

t pow

ers

agre

emen

tpu

rsua

nt to

this

cha

pter

or

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othe

r la

w is

enco

urag

ed to

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one

cop

y of

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agre

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xpla

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ater

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ts.

Sour

ce: S

.L. 1

993,

ch.

401

, 149

.

71

1:1

U.S. Department of EducationOffice of Educational Research and Improvement (OERI)

National Library of Education (NLE)Educational Resources Information Center (ERIC)

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