Section 071-61-1 - DEFINITIONSFor the purposes of this Chapter, the following terms have the following meanings:
1. "Approved Projects List" - Projects from the Final Priority List that have been designated by the State Board of Education for funding.2. "Arbitrage" - In the municipal market, the difference in interest earned on funds borrowed at a lower tax-exempt rate and interest on funds that are invested at a higher-yielding taxable rate. Under the 1986 Tax Act, with very few exceptions, arbitrage earnings must be rebated back to the federal government.3. "Bond" - The written evidence of debt, bearing a stated rate or stated rates of interest, or stating a formula for determining that rate, that matures on a date certain on which date and upon presentation a fixed sum of money plus interest is payable to the holder or owner.4. "Bond Anticipation Note (BAN)" - A note issued in anticipation of a later issuance of bonds, usually payable from the proceeds of the sale of the bonds or of renewal notes. BANs can also be general obligations of the issuer. A general obligation bond is a bond secured by the pledge of the issuer's full faith, credit, and taxing power.5. "Bond Bank" - The Maine Municipal Bond Bank created by 30-A M.R.S.A. §5951. The Bond Bank may make loans to an SAU to promote efficient capital financing activities for the construction, renovation and maintenance of school facilities.6. "Career and Technical Education" - A course or program of education designed to create or improve job-related skills that is part of a secondary school curriculum and approved by the commissioner according to 20-A M.R.S.A. §8301-A(2-A).7. "Career and Technical Education Center "- An administrative entity established pursuant to this chapter that provides career and technical education to secondary students. Unless otherwise specifically provided for by 20-A M.R.S.A. §8301-A(3). For purposes of this chapter, a center is governed, operated and administered by a single SAU. A center shall make its programs available to serve secondary students from SAUs with which it is affiliated. A center may include within its administrative structure career and technical education satellite programs operated by SAUs with which it is affiliated.8. "Career and Technical Region" - A quasi-municipal corporation established by the Legislature to provide career and technical education to secondary students that is comprised of all the SAUs within the geographical boundaries set forth for each career and technical education region in 20-A M.R.S.A. §8451. A region is governed by a cooperative board formed and operating in accordance with 20-A M.R.S.A. Chapter 313.9. "Commissioning" - A systematic documented process by an independent entity which shall include visual examination and functional performance testing to demonstrate that installed components or systems meet the intent of the original design.10. "Completed Building Project" - The project is considered completed when all punch list items are completed; all invoices have been paid; all existing litigation/arbitration issues have been resolved; all applicable arbitrage computations have been prepared by bond counsel, the SAU auditor, or other authorized person; and no further financial transactions are anticipated. Where required, certificates of occupancy shall have been obtained.11. "Compliance Review" - An examination of the SAU's school construction project. For purposes of 20-A M.R.S.A. §15909(6) audit is referred to herein as compliance review.12. "Compliance Review Staff" - Staff within the Department of Education having the responsibility of reviewing an SAU's records relating to a school construction project.13. "Concept Approval" - The initial approval of a school construction project by the State Board which indicates: A. Acknowledgement of the local need;B. Approval of the preliminary design;C. Approval of estimated costs; andD. The State Board's intent to issue Design and Funding Approval subject to a favorable local vote and approval of final cost estimates.14. "Contingency Funds" - Bid contingencies are project funds that have been set aside or reserved to cover bidding overruns. Construction contingencies are used to cover project errors and omissions and miscellaneous project expenditures not part of the initial project budget but necessary to complete the project.15. "Debt Service Costs" - Defined in 20-A M.R.S.A. §15672(2)(A) as principal and interest on approved school construction costs excluding payments made with funds from State and local government accounts established under the Federal Internal Revenue Code and regulations for disposition of excess, unneeded proceeds of bonds issued for a school project.16. "Debt Service Principal" -The face amount of a bond exclusive of accrued interest and payable at maturity.17. "Department" - The State of Maine Department of Education.18. "Design and Funding Approval" - An approval by the State Board indicating that a Major Capital School Construction project's drawings and specifications have been developed to 100% completion, the project has gained the recommendations of the Department and the SAU is authorized to seek bids for the work.19. "Educational Specifications" - An SAU's written description of its educational goals and activities, and the interrelationships between those educational goals and activities and their associated facilities, that need to be provided in a proposed new or renovated school facility.20. "Emergency Project" - Any school construction project requiring the replacement of all or a significant portion of a school facility, resulting from an unanticipated and sudden natural or human disaster, and which is declared uninhabitable by an authorized local, state or federal government agency or individual (e.g., the State Fire Marshal's Office).21. "Facilities Team" - Staff within the Department having the responsibility for administration of all programs relating to school facilities, including but not limited to Major Capital School Construction, Leased Space, Revolving Renovation Fund, and Federal School Construction/Renovation Grants.22. "Final Compliance Review" - A review of the school construction project that is conducted after the completion of the project.23. "Final Funding Approval" - Approval granted to a Major Capital School Construction project that has gone through the bid process, and the Commissioner has adjusted the state/local budget based upon the low bid and the Facilities Team's recommendation.24. "Final Priority List" - A list of projects that has been approved by the State Board after all opportunities for appeal have been exhausted.25. "Industry Training Center" - A facility which has the potential to be available 24/7 to provide workforce training to meet industry standards and exposure to a variety of career pathways.26. "Initial Priority List" - A needs-based priority list developed by the Facilities Team and recommended to the Commissioner.27. "Integrated, Consolidated 9-16 Educational Facility" - A facility that includes: a regional high school fully integrated with a career and technical high school (center/region); a higher education center offering courses and degrees from the University of Maine System and the Community College System; and a center providing industry-specific training.28. "Interest Expense" - Interest paid on loans, BANs, and other project revenue.29. "Interest Income" - Interest earned on loans, BANs, bonds, and other project revenue.30. "Interim Compliance Review" - A review of the school construction project accounts prior to the completion of the project.31. "Life Cycle Costs Analysis" - An analysis of alternatives with the objective of selecting the most cost-effective building systems for the project.32. "Local Only" - The portion of the project budget that is 100% locally funded.33. "Long-Term Tuition Contract" - Ten years or maximum permitted by law.34. "Maintenance" - Those activities having to do with scheduled and unscheduled repairs, upkeep, minor alterations and enhancements of buildings. Maintenance is also defined as preventive maintenance work necessary to achieve the design life expectancy of building systems and components.35. "Major Capital School Construction Project" - New construction and major renovation projects that meet the educational program needs of the school.36. "Moveable Equipment" - Equipment, including technology, for a school construction project that supports the educational program. Moveable equipment has an expected life of at least five years and is not attached to the building.37. "Non-Allowable Expenditures" - Expenditures that are not included in the approved project budget.38. "Notes" - Short-term promises to pay specified amounts of money. Notes may be secured by specific sources of future revenues, such as taxes, federal and state aid payments, and bond proceeds.39. "One Campus" - The campus contains the elements of an integrated, consolidated 9-16 educational facility promoting the development of a design where all facilities are located on one site and provide a streamlined and integrated learning experience for eligible students.40. "Project Budget" - The listing of line item costs allocated to complete a school construction project that is finalized at the time of Final Funding Approval by the Commissioner.41. "Proposed Priority List" - A needs-based list recommended by the Commissioner and received by the State Board and continuing through the Administrative Review (appeals) process.42. "Project Funds" - BAN proceeds, bond proceeds, note proceeds, loan proceeds for initial start-up costs, local appropriations, gifts, grants, and all other project resources.43. "Punch List" - A list of unfinished or incorrect building items identified at project end that must be completed or corrected to complete the project.44. "Rating Cycle" - A period of time, established by the State Board, during which the Facilities Team accepts applications from SAUs for Major Capital School Construction projects, visits each facility, rates each facility, and develops a priority list to be recommended to the Commissioner.45. "Regional High School" - Two or more high schools that have combined (at the time of or since the Sinclair Act) or that are combining in the new innovative, consolidated 9-16 educational facility, (or a high school organized to serve two or more communities).46. "School Administrative Unit (SAU)" - Defined in 20-A M.R.S.A. Chapter 609, § 15901(6).47. "State Board" - The State Board of Education.48. "State/Local" - The portion of the project budget that has been approved for State subsidy.49. "Substantially Renovated" - Any renovation for which the cost exceeds 50% of the building's current value prior to renovation.05-071 C.M.R. ch. 61, § 1