School Construction, Modernization, Maintenance Bill, 12-405b

School Construction, Modernization, Maintenance, and Management Authority Establishment Amendment Act of 1997, Bill 12-405

(a) Any agreement entered into between the School Authority and the owner or developer of a proposed combined occupancy structure pursuant to section 7(b) of this act shall provide for:

(1) The construction, acquisition, reconstruction, rehabilitation, or improvement of 1 or more combined occupancy structures, and the purchase or acquisition of the original furnishings, equipment, machinery, and apparatus to be used in the school portion of a combined occupancy structure upon completion of the work,

(2) The reconveyance, retransfer, or leasing of all or any portion and of the real property or interest related, including real property originally acquired by the Emergency Transitional Education Board of Trustees, upon the completion of construction, acquisition, reconstruction, rehabilitation, or improvement upon such terms and conditions as may be agreed upon in those instances where there has been a prior conveyance, transfer, or lease by the School Authority to the owner or developer;

(3) The leasing and subleasing of such combined occupancy structures and property, or separately of the school and non-school portions, by the School Authority upon completion for a term not exceeding 95 years and upon such terms and conditions including annual rental as may be agreed upon, and;

(4) The conveyance to the Emergency Transitional Board of Trustees in the name of the District of Columbia of title to the school portion of any such combined occupancy structures at the expiration of the term of the lease, or any renewal or extension, or upon earlier payment in full of the total amount specified, without additional charge. The Board shall approve any such agreement.

(b)( 1 ) Any lease, sublease, or other agreement entered into between the School Authority and the owner or developer of a proposed combined occupancy structure or the owner or developer of the non- school portion of a shared school site development shall provide for payment to the School Authority of the fair market value of such easements, space rights, air rights or other fee or leasehold interests as are to be held or retained by such owner or developer or his successor in interest under the terms of the agreement.

(2) Whenever the easements, space rights, air rights, or other fee or leasehold interests held or retained by such owner or developer, if other than the School Authority, or the non-school improvements constructed or erected, shall be exempt from real property taxes, the lease, sublease, or other agreement shall also provide for the payment to the School Authority of annual or other periodic amounts equal to the amount of real property taxes or PILOTS that would otherwise have been paid or payable with respect to such easements, space rights, air rights, or other fee or leasehold interests, and with respect to the non-school improvements constructed or erected, over the term of such lease, sublease, or other agreement. In the event provision is made for the annual or other periodic payment of a fixed sum or sums as a PLOT, such lease, sublease, or other agreement may further provide, upon approval by the District of Columbia of such provision, that:

(A) Such lessee, sublessee, or vendee shall be required to pay such fixed sum or sums to the School Authority during the term of such lease, sublease, or other agreement regardless of whether the said property rights are exempt from real property taxes,

(B) If for any year during such term an ad valorem tax shall be levied and paid by a lessee, sublessee, or vendee on the said property rights, the lessee, sublessee, or vendee shall receive a credit against any taxes payable by it to the city in the amount of such ad valorem tax paid by it; and

(C) In the event, during such term a substitute tax, in place either in whole or in part of a real property tax on said property rights, is levied and paid by a lessee, sublessee, or vendee, the lessee, sublessee, or vendee shall receive a credit against any taxes payable by it to the District for the amount of such substitute tax paid by it.

(d) Any lease, sublease, or other agreement entered into between the School Authority and the Board of Education pursuant to section 7 of this act shall provide for:

(1) The construction, acquisition, reconstruction, rehabilitation, or improvement of one or more combined occupancy structures or a shared school site development and for combined occupancy structures,

(2) The leasing or subleasing of the school portion of such structures to the Board of Education for a term not exceeding 95 years, upon-such terms and conditions as may be agreed upon.

(e) Every lease, sublease, or other agreement executed pursuant to this act shall be subject to the approval of the Mayor, the Chief Financial Officer and the Financial Control Board with respect to all rentals or other payments to be made by the District of Columbia, the Board of Education, or by the owner or developer of a combined occupancy structure or a shared school site development and shall contain a clause that any agreement of the District of Columbia shall be deemed executory to the extent of the monies available to- the District and no liability on account shall be incurred by the District beyond the monies available for the purpose.

Sec. 16. Notes and bonds of the School Authority.

(a)(1) Subject to the provisions of section 4 of this act, the School Authority shall have the power and is hereby authorized from time to time to issue its negotiable bonds and notes in such principal amount as, in the opinion of the School Authority, shall be necessary, after taking into account other monies which may be available for the purpose, to provide sufficiently to the School Authority in order to achieve its corporate purposes, including the construction, acquisition, reconstruction, rehabilitation, or improvement of the school portion of combined occupancy structures or shared school site developments, pursuant to this act, the payment of interest on bonds and notes of the School Authority, establishment of reserves to secure such bonds and notes, and all other expenditures of the School Authority incident to and necessary or convenient to carry out its corporate purposes and powers.

(2) The School Authority shall have power, from time to time, to issue renewal notes, to issue bonds to pay notes and whenever it deems refunding expedient, to refund any bonds any the issuance of new bonds, whether the bonds to be refunded have or have not matured, and to issue bonds partly to refund bonds then outstanding and partly for any other purpose. The refunding bonds shall be sold and the proceeds applied to the purchase, redemption or payment of the bonds to be refunded.

(3) Except as may otherwise be expressly provided by the School Authority, every issue of its notes or bonds shall be general obligations of the School Authority payable out of any revenues or monies of the School Authority, subject only to any agreements with the holders of particular notes, bonds pledging any particular receipts, or revenues.

(4) Whether or not the notes or bonds are of such form and character as to be negotiable instruments under the provisions of D.C. Code §28:3-101 et. seq., 28:4-101 et. seq., and 28:8-102 et. seq., the notes or bonds shall be and hereby are made negotiable instruments within the meaning of and for all the purposes of D.C. Code § 28:3-101 et. seq., 28:4-101, et. seq., and 28:8-101, et. seq., subject only to the provisions of the notes or bonds for registration.

(b) The notes and bonds of the School Authority shall be authorized by resolution of the Trustees, shall bear such date or dates, and shall mature at such time or times, in the case of any note, or any renewals, not exceeding 5 years, from the date of issue of such original note, and in the case of any such bond not exceeding 40 years from the date of issue, as such resolution or resolutions may provide. The notes and bonds shall bear interest at such rate or rates, be in such denominations, be in such form, either coupon or registered, carry such registration privileges, be executed in such manner, be payable in such medium of payment, at such place or places and be subject to such terms of redemption as such resolution or resolutions may provide. The notes and bonds of the School Authority may be sold by the School Authority, at public or private sale, at such price or prices as the School Authority shall determine. No notes or bonds of the School Authority may be sold by the School Authority at private sale, however, unless such sale and the terms of the bond have been approved in writing by the Chief Financial Officer.

(c) Any resolution authorizing any notes or bonds or any issue may contain provisions, which shall be a part of the contract with the holders, as to:

(1) Pledging all or any part of the fees and charges made or received by the School Authority, and all or any part of:

(A) The rentals or other payments to be received by the School Authority with respect to the school portion of combined occupancy structures financed with the proceeds of such bonds and notes;

(B) The rentals or other payments to be received by the School Authority with respect to the non-school portion of combined occupancy structures, and;

(C) Any other monies, assets, or accounts received or to be received by the School Authority or pledged or assigned to the School Authority to secure the payment of such notes or bonds or of any issue, subject to such agreements with bondholders or noteholders as may then exist.

(2) Pledging all or any part of the assets of the School Authority to secure the payment of such notes or bonds or of any issue of notes or bonds, subject to such agreements with noteholders or bondholders as may then exist;

(3) The use and disposition of the gross income of the School Authority in connection with combined occupancy structures financed or constructed, acquired, reconstructed, rehabilitated, or improved by it or on its behalf;

(4) The pledging of any PILOTS on the non-school portion of any combined occupancy structure or shared school site development;

(5) The setting aside of reserves or sinking fund and the regulation and disposition;

(6) Limitations on the purpose to which the proceeds of sale of notes or bonds may be applied and pledging such proceeds to secure the payment of the notes or bonds or of any issue;

(7) Limitations on the issuance of additional notes or bonds; the terms upon which additional notes or bonds may be issued and secured; the funding of outstanding or other notes or bonds;

(8) The procedure, if any, by which the terms of any contract with noteholders or bondholders may be amended or abrogated, the amount of notes or bonds the holders of which must consent and the manner in which such consent may be given;

(9) Limitations on the amount of monies to be expended by the School Authority for operating, administrative, or other expenses of the School Authority;

(10) Vesting in a Trustee or Trustees such property, rights, powers, and duties in trust as the School Authority may determine, which may include any or all of the rights, powers, and duties of the Trustee appointed by the bondholders pursuant to this article, and limiting or abrogating the right of the bondholders to appoint a Trustee under this article or limiting the rights, powers, and duties of the Trustee;

(11 ) Any other matters, of like or different character, which in any way affect the security or protection of the notes or bonds.

(d) Any pledge made by the School Authority shall be valid and binding from the time the pledge is made; monies or property so pledged and received by the School Authority shall immediately be subject to the lien of the pledge without any physical delivery or further act; and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the School Authority, irrespective of whether the parties have notice. Neither the resolution nor any other instrument by which a pledge is created need be recorded.

(e) Neither the Trustees of the School Authority nor any person executing the notes or bonds shall be liable personally on the notes or bonds or be subject to any personal liability or accountability by reason of the issuance

(f) The School Authority, subject to agreements with noteholders or bondholders as may then exist, shall have power out of any funds available to purchase notes or bonds of the School Authority, which shall be cancelled, at a price not exceeding: (a) If the notes or bonds are then redeemable, the redemption price then applicable plus accrued interest to the next interest payment date, or (b) If the notes or bonds are not then redeemable, the redemption price applicable on the 1st date after purchase upon which the notes or bonds become subject to redemption plus accrued interest to that date.

(g) The District shall not be liable on the notes or bonds of the School Authority and the notes and bonds shall not be a debt of the District, and the notes and bonds shall contain on the face a statement to such effect.

Sec. 17. Reserve Funds, appropriations and other funds and accounts.

(a)(l) The School Authority shall create and establish a capital reserve fund, and shall pay into the capital reserve fund:

(A) Any monies appropriated and made available by the District of Columbia for the purposes of such fund;

(B) Any proceeds of sale of notes or bonds to the extent provided in the resolution of the School Authority authorizing the issuance, and;

(C) Any other monies which may be made available to the School Authority for the purpose of such capital reserve fund from any other source. All monies held in the capital reserve fund, established for bonds of the fund secured by the capital reserve fund except as provided, shall be used solely for the payment of the principal of the bonds as the same mature, required payments to any sinking fund established for the amortization of term bonds (referred to as "sinking fund payments"), the purchase or redemption of such bonds, the payment of interest on such bonds or the payment of any redemption premium required to be paid when the bonds are redeemed prior to maturity; provided, however, that monies in the capital reserve fund shall not be withdrawn at any time in such amount as would reduce the amount of the fund to less than the maximum amount of principal and interest maturing and becoming due and sinking fund payments required to be made in any succeeding fiscal year on all bonds of the School Authority secured by the capital reserve fund then outstanding, except for the purpose of paying principal, interest and sinking fund payments becoming due on the bonds of the School Authority maturing and becoming due and for the payment of which other monies of the School Authority are not available. For the purposes of this subparagraph, in computing the maximum amount of principal maturing in any succeeding calendar year, the principal amount of any term bonds which are to be amortized by sinking fund payments shall not be included in the computation. Any income or interest earned by, or increment to, the capital reserve fund due to the investment may be transferred to other funds or accounts to the extent it does not reduce the amount of the capital reserve fund below the maximum amount of principal and interest maturing and becoming due and sinking fund payments required to be made in any succeeding calendar year on all bonds of the School Authority then outstanding secured by the capital reserve fund.

(2) The School Authority shall not issue bonds secured by the capital reserve fund at any time if the maximum amount of principal and interest maturing and becoming due and sinking fund payments required to be made in a succeeding fiscal year on the bonds then to be issued and on all other bonds of the School Authority then outstanding secured by the capital reserve fund will exceed the amount of the capital reserve fund at the time of issuance unless the School Authority, at the time of issuance of such bonds, shall deposit in the capital reserve fund from the proceeds of the bonds so to be issued, or otherwise, an amount which, together with the amount then in such fund, will be not less than the maximum amount of principal and interest maturing and becoming due and sinking fund payments required to be made in any succeeding fiscal year on such bonds then to be issued and on all other bonds of the School Authority then outstanding secured by the capital reserve fund.

(3) To assure the continued operation and solvency of the capital reserve fund for the carrying out of the public purposes of this act, provision is made in subsection (a)(1) of this section for the accumulation in the capital reserve fund of an amount equal to the maximum amount of principal and interest maturing and becoming due and sinking fund payments required to be made in any succeeding fiscal year on all bonds of the School Authority then outstanding secured by the capital reserve fund. In order further to assure maintenance of the capital reserve fund, the Board of Education shall annually request from the District of Columbia and pay over to the School Authority, for deposit in the capital reserve fund, such sum, if any, as shall be certified by the chairperson of the School Authority to the Board, the Mayor, and the Chief Financial Officer District of Columbia as necessary to restore the capital reserve fund to an amount equal to the maximum amount of principal and interest maturing and becoming due and sinking fund payments required to be made in the next succeeding fiscal year on the bonds of the School Authority then outstanding secured by the capital reserve fund; provided, however, that such sum shall have been first appropriated by the Council to the School Authority or shall otherwise have been made lawfully available to the School Authority for such purpose. The Chairperson of the School Authority shall annually, not later than the 1 5th day of January of each year, make and deliver to the Board, the Mayor and the Chief Financial Officer his certificate stating the amount, if any, required to restore the capital reserve fund to the amount and the amount so stated, if any, shall be paid to the School Authority by the Chief Financial Officer during the then current fiscal year of the School Authority. In the event of the failure or inability of the Chief Financial Officer to pay over the stated amount to the School Authority on or before August 1st of the same year, the chairperson of the School Authority shall make and deliver to the Chief Financial Officer of the District a further certificate restating the amount so required and, after the Chief Financial Officer of the District shall have given written notice to the Superintendent, the Mayor, and Chief Financial Officer, such amount shall be paid over to the School Authority by the Chief Financial Officer of the District out of the next capital appropriation of the District for the support of public schools or such other aid or assistance payable in support of public schools as shall supersede or supplement such District appropriation for the support of public schools, including, federal monies appropriated to the District for the support of public schools. Any amount so paid over to the School Authority shall be deducted from the corresponding appropriation of District education aid or other aid or assistance for education otherwise credited to the Board of Education for its purposes and shall not obligate the District to make or entitle the District or the Board of Education to receive any additional or increased apportionment or payment for school purposes.

(4) In computing the amount of the capital reserve fund for the purposes of this section, securities in which all or a portion of such fund shall be invested shall be valued at par, or if purchased at less than par, at their cost to the fund.

(b)(1) The School Authority may create and establish with the Chief Financial Officer or with a Trustee l or more additional funds or accounts and, subject to agreements with bondholders and noteholders, may pay into the funds or accounts:

(A) Fees and charges collected by the School Authority;

(B) Monies which shall be transferred from the capital reserve fund pursuant to this section, and:

(C) Any other monies which may be made available to the School Authority from any other source.

(2) The monies held in or credited to any such reserve fund or account may, in the discretion of the School Authority but subject to agreements with bondholders and noteholders, be used by the School Authority:

(A) For the repayment of advances from the District;

(B) To reimburse the Board the reasonable costs of services performed by the Board for the School Authority pursuant to section 5 of this act;

(C) To pay all costs, expenses, and charges of financing, including fees and expenses of Trustees and paying agents;

(D) For transfers to the capital reserve fund;

(E) For the payment of principal of and interest on bonds or notes issued by the School Authority when the same shall become due, whether at maturity or on call for redemption, and for the payment of any redemption premium required to be paid where such bonds or notes are redeemed prior to their stated maturities, and to purchase bonds or notes issued by the School Authority;

(F) For other corporate purposes as the School Authority in its discretion shall determine and provide; or

(G) For payment to the Board for school purposes.

(d)(l) The School Authority may create and establish 1 or more debt service reserve funds, and shall pay into each debt service reserve fund:

(A) Any monies appropriated and made available by the District of Columbia or the Federal government for the purposes of such fund;

(B) Any proceeds of sale of notes or bonds to the extent provided in the resolution of the School Authority authorizing its issuance, and;

(C) Any other monies which may be made available to the School Authority for the purposes of any such debt service reserve fund from any other source or sources.

All monies held in a debt service reserve fund, except as provided, shall be used solely for the payment of the principal of bonds of the School Authority as the same mature, required payments to any sinking fund established for the amortization of term bonds (referred to as "sinking fund payments"), so secured, the purchase or redemption of bonds of the School Authority so secured, the payment of interest on the bonds of the School Authority so secured or the payment of any redemption premium required to be paid when such bonds secured by a debt service reserve fund are redeemed prior to maturity; provided, however, that monies in a debt service reserve fund shall not be withdrawn at any time in such amount as would reduce the amount of such fund to less than the maximum debt service reserve fund requirement on all bonds of the School Authority secured by a debt service reserve fund, except for the purpose of paying principal of interest and sinking fund payments becoming due on the bonds of the School Authority maturing and becoming due and for the payment of which other monies of the fund are not available. For the purposes of this subsection, in computing the maximum amount of principal maturing in any succeeding calendar year, the principal amounts of any term bonds which are to be amortized by sinking fund payments shall not be included in the computation. Any income or interest earned by, or increment to a debt service reserve fund due to the investment may be transferred to other funds or accounts to the extent it does not reduce the amount of a debt service reserve fund below the maximum debt service reserve fund requirement.

(2) The School Authority shall not issue bonds at any time if the maximum debt service reserve fund requirement on such bonds then to be issued and on all other bonds of the School Authority then outstanding so secured will exceed the amount of the debt service reserve fund at the time of issuance unless the School Authority, at the time of issuance of such bonds, shall deposit in the debt service reserve fund from the proceeds of the bonds so to be issued, or otherwise, an amount which, together with the amount then in the fund, will be not less than the maximum debt service reserve fund requirement on bonds then to be issued and on all other bonds of the School Authority then outstanding so secured.

(3) To assure the continued operation and solvency of the School Authority for the carrying out of the public purposes of this act, provision is made in this subsection for the accumulation in a debt service reserve fund of an amount equal to the maximum debt service reserve fund requirement on all bonds of the School Authority then outstanding secured by a debt service or debt service reserve fund. In order further to assure the maintenance of a debt service reserve fund, the Board of Education shall annually request from the District of Columbia and pay over to the School Authority after making the payment required by this section for deposit in a debt service reserve find, such sum, if any, as shall be certified by the chairperson of the School Authority to the Board, the Mayor, and the Chief Financial Officer the District as necessary to restore such debt service reserve fund to an amount equal to the maximum on the bonds of the School Authority then outstanding secured by a debt service reserve fund; provided, however, that the sum shall have been first appropriated by the Council to the Board or shall otherwise have been made lawfully available to the Board for such purpose. The chairperson of the School Authority shall annually, not later than the January 1 5th in each year, make and deliver to the Board, the Mayor, the Chief Financial Officer, and the Council of the District of Columbia, his certificate stating the amount, if any, required to restore a debt service reserve fund to the amount and the amount so stated after making the payment required by this section if any, shall be paid to the School Authority by the Board during the then current fiscal year of the School Authority. In the event of the failure or inability of the Board to pay over the stated amount to the School Authority on or before August first of the same year, the chairperson of the School Authority shall make and deliver to the Chief Financial Officer of the District of Columbia a further certificate restating the amount so required and, after the Chief Financial Officer of the District of Columbia shall have given written notice to the Board of Education, the Mayor and the Council of the District of Columbia, such amount after making the payment required by this section shall be paid over to the School Authority by the Chief Financial Officer of the District of Columbia out of the next appropriations for DCPS or such other aid or assistance payable in support of public schools as shall supersede or supplement the appropriations to the District's public schools.

(4) In computing the amount of any debt service reserve fund for the purposes of this section, securities in which all or a portion of such fund shall be invested shall be valued at par, or if purchased at less than par, at their cost to the fund.

(e )(1) In addition to the funds permitted to be established to this section, the School Authority may create and establish with the Chief Financial Officer or with a Trustee 1 or more additional funds or accounts and, subject to agreements with bondholders and noteholders, may pay into the funds or accounts:

(A) Fees and charges collected by the School Authority;

(B) Monies which shall be transferred from a debt service or reserve School Authority pursuant to the provisions of this section, and;

(C) Any other monies which may be made available to the School Authority from any other source.

(2) The monies held in or credited to any such fund may, in the discretion of the School Authority but subject to agreements with bondholders and noteholders, be used by the School Authority:

(A) For the repayment of advances from the District of Columbia;

(B) To reimburse the Emergency Transitional Education Board of Trustees of the District of Columbia the reasonable costs of services performed by the Board for the School Authority pursuant to section 5 of this act;

(C) To pay all costs, expenses and charges of financing, including fees and expenses of Trustees and paying agents;

(D) For transfers to a debt service or a debt service reserve fund;

(E) For the payment of principal, interest and sinking fund payments for any bonds or notes issued by the School Authority when the same shall become due, whether at maturity or on call for redemption, and for the payment of any redemption premium required to be paid where such bonds or notes are redeemed prior to their stated maturities, and to purchase bonds or notes issued by the School Authority;

(F) For such other corporate purposes as the School Authority in its discretion shall determine and provide, or;

(G) For payment to the Board for school purposes.

Sec. 18. Agreement with the District.

The District does pledge to and agree with the holders of any notes or bonds issued under this act, that the District will not limit or alter the rights vested in the School Authority to fulfill the terms of any agreements made with the holders, or in any way impair the rights and remedies of such holders until such notes or bonds, together with the interest, with interest on any unpaid installments of interest, and all costs and expenses in connection with any action or proceeding by or on behalf of such holders, are fully met and discharged. The School Authority is authorized to include this pledge and agreement of the state in any agreement with the holders of such notes or bonds.

Sec. 19. District's right to require redemption of bonds.

Notwithstanding and in addition to any provisions for the redemption of bonds which may be contained in any contract with the holders of the bonds, the District may, upon furnishing sufficient funds, require the School Authority to redeem, prior to maturity, as a whole, any issue of bonds on any interest payment date not less than 20 years after the date of the bonds of such issue at 105% of their face value and accrued interest or at such lower redemption price as may be provided in the bonds in case of the redemption as a whole on the redemption date. Notice of such redemption shall be published in at least 2 newspapers published and circulating in the District at least twice, the first publication to be at least 30 days before the date of redemption.

Sec. 20. Remedies of noteholders and bondholders.

(a) In the event that the School Authority shall default in the payment of principal of or interest on any issue of notes or bonds after the same shall become due, whether at maturity or upon call for redemption, and such default shall continue for a period of 30 days, or in the event that the School Authority shall fail or refuse to comply with the provisions of this article, or shall default in any agreement made with the holders of any issue of notes or bonds the holders of 25% in aggregate principal amount of the notes or bonds of such issue then outstanding, by instrument or instruments filed in the Office of the Recorder of Deeds of the District and approved or acknowledged in the same manner as a deed to be recorded, may appoint a Trustee to represent the holders of such notes or bonds for the purposes provided.

(b) Such Trustee may, and upon written request of the holders of 25% in principal amount of such notes or bonds then outstanding shall, in his or its own name:

(1) By suit, action or proceeding in accordance with the civil practice law and rules, enforce all rights of the noteholders or bondholders and require the School Authority to carry out agreements with such noteholders or bondholders and to perform its duties under this act;

(2) Bring suit upon such notes or bonds;

(3) By action or suit, require the School Authority to account as if it were the Trustee of an express trust for the holders of such notes or bonds;

(4) By action or suit, enjoin any acts or things which may be unlawful or in violation of the rights of the holders of such notes or bonds;

(5) Declare all such notes or bonds due and payable, and if all defaults shall be made good, then, with the consent of the holders of 25% of the principal amount of such notes or bonds then outstanding, annul the declaration and its consequences.

(c) Such Trustee shall in addition to the foregoing have and possess all of the powers necessary or appropriate for the exercise of any functions specifically set forth or incident to the general representation of bondholders or noteholders in the enforcement and protection of their rights.

(d) The Superior Court shall have jurisdiction of any suit, action or proceeding by the Trustee on behalf of the noteholders or bondholders.

(e) Before declaring the principal of notes or bonds due and payable, the Trustee shall first give 30 days' notice in writing to the Mayor, to the Chief Financial Officer, to the School Authority, to the Board, and to the Corporation Counsel.

Sec. 21. Notes and bonds as legal investments.

The notes and bonds of the School Authority are made securities in which all public officers and bodies of the District, all insurance companies and associations, and other persons carrying on an insurance business, all banks, bankers, trust companies, savings banks and savings associations, including savings and loan associations, building and loan associations, investment companies and other persons carrying on a banking business, all administrators, guardians, executors, trustees, and other fiduciaries, and all other persons whatsoever who are now or may hereafter be authorized to invest in bonds or other obligations of the District, may properly and legally invest funds, including capital, in their control or belonging to them.

Sec. 22. [There is no section 22]

Sec. 23 Actions by and against the School Authority.

(a) The Superior Court shall have exclusive jurisdiction of any action, suit or special proceeding brought by or against or involving the School Authority. The venue of any action, suit, or special proceeding brought against the funds shall be laid in the District of Columbia.

(b) In every action against the School Authority for damages, for injuries to real or personal property, or for the destruction of the property, or for personal injuries or death, the complaint shall contain an allegation that the specific claims were presented to a Trustee or officer of the School Authority and that the School Authority neglected or refused to make an adjustment or payment for 30 days after such presentment.

(c) An action against the School Authority for damages for injuries to real or personal property, or for the destruction of the property, or for personal injuries or death, alleged to have been sustained, shall not be commenced more than 2 years after the cause of action have accrued, nor unless a notice of intention to commence such action and of the time when and place where the damages personal injuries or death where incurred or sustained, together with a verified statement showing in detail the property alleged to have been damaged or destroyed and its value, or the personal injuries or death, alleged to have been sustained, and by whom, shall have been filed with a Trustee or officer of the School Authority in the principal office of the School Authority within 90 days after such cause of action shall have accrued.

Sec. 24. Annual report of Trustees.

The Trustees of the School Authority shall submit to the Mayor, the Board, and the Council of the District of Columbia annually on or before February first, a full report of its activities and operations through the 30th day of the preceding September, including:

(a) Details as to projects in planning, projects in the process of construction, acquisition, reconstruction, rehabilitation, or improvement, and projects completed;

(b) The performance record of the Trustees in completing construction in accordance with the desired completion dates and within the estimated costs;

(c) The architects, engineers, and other private consultants engaged by the Trustees of the School Authority on a contract basis and a statement of the total amount paid and yet to be paid, or estimated yet to be paid, under each such contract;

(d) The monies made available for the purposes of the School Authority;

(e) Details as to any lease, sublease or agreement executed by the Trustees of the School Authority and the annual rentals to be paid or received on account;

(f) Its assets and liabilities at the end of the fiscal year, including the status of reserve funds and other funds and accounts;

(g) A schedule of its bonds and notes outstanding at the end of its fiscal year, together with the amounts redeemed and incurred during such fiscal year, and such other information related to the activities and operation of the School Authority as the Trustees may consider pertinent.

Sec. 25. Act not affected if in part unconstitutional or ineffective.

If any section, subsection, paragraph, sentence, clause, or provision of this act shall be unconstitutional or be ineffective in whole or in part, to the extent that it is not unconstitutional or ineffective, it shall be valid or effective and no other section, subsection, paragraph, sentence, clause, or provision shall on account be deemed invalid or ineffective.

Sec. 26. Conforming Amendments.

(a) The District of Columbia Board of Education Leasing Authority Act of 1982, approved July 29, 1982 (D.C. Law 8-158; D.C. Code § 31-120, 31-201.2) is amended as follows:

Section 2 (a) is amended to read as follows:

"The School Construction, Modernization, Maintenance, and Management Authority, with the advice of the Emergency Transitional Education Board of Trustees, shall have the power to negotiate and approve use, license, and lease agreements, with or without monetary consideration, with respect to the use of public school buildings and parts of public school buildings and the appurtenant grounds and land intended for public school use, by or for any of the following:

(b) Section 4 is amended by striking the words "Board of Education" and inserting the words "School Construction, Modernization, Maintenance, and Management Authority" in its place.

(c) Section 2 (b-1) of The Board of Education Real Property Disposal Act, approved June 28, 1990 (D.C. Law 8-158, D.C. Code §31-201 c-1) is amended by striking the words "the Board " and inserting the words "School Construction, Modernization and Management Authority" in its place.

Sec. 25. Inconsistent provisions of other laws superseded.
[This is the second section numbered 25.]

If the provisions of this act are inconsistent with the provisions of any other general, special, or local law, or with the provisions of any charter or ordinance, the provisions of this act shall be controlling. The provisions of this act shall not be deemed to prevent the District of Columbia from financing the cost of acquiring, constructing, reconstructing, rehabilitating, or improving 1 or more school buildings by the issuance of [bonds or capital notes pursuant to the local finance law.

Sec. 26. Effective Date.
[This is the second section numbered 26.]

This act shall take effect following approval by the Mayor (or in the event of veto by the Mayor, action by the Council to override the veto), approval by the Financial Responsibility and Management Assistance School Authority as provided in section 203(a) of the District of Columbia Financial Responsibility and Management Assistance School Authority Act of 1995, approved April 17, 1995 (109 Stat. 116; D.C. Code § 47-392.3(c)), and a 30-day period of Congressional review as provided in section 602(c)(1) of the District of Columbia Self-Government and Governmental Reorganization Act, approved December 24, 1973 (87 Stat. 813; D.C. Code § 1-233(c)(1)), and publication in the District of Columbia Register.