A. It is the purpose of this Section to assist city and parish school systems, approved nonpublic schools, and contract school bus operators in purchasing new school buses by making low-interest loans available and thereby protecting the safety and welfare of the school children of this state by assuring they are riding in safe vehicles. This purpose is hereby declared to be a public purpose.

            B.(1) There is hereby established in the Department of Education the School Bus Purchase Program solely for the purpose of making loans to city and parish school boards, approved nonpublic schools, and contract school bus operators for the purchase of new school buses.

            (2) The program shall be established and funded with revenues generated by the issuance of not to exceed ten million dollars of special obligation revenue bonds by the Louisiana Public Facilities Authority.

            C. The program of providing the loans shall be implemented and administered by the Department of Education in the manner determined by the State Board of Elementary and Secondary Education in coordination with the Louisiana Public Facilities Authority operating in accordance with La. Rev. Stat. 9:2341 through 2347. The authority shall disburse the funds as directed by the appropriate state department official.

            D. The State Board of Elementary and Secondary Education shall adopt the rules and regulations necessary to establish the program. Such rules and regulations shall include, at a minimum, the following:

            (1) Criteria for eligibility to receive such loans.

            (2) Interest rates to be charged on such loans, which shall be at the lowest rate available sufficient to service this debt.

            (3) Limits on the amount of individual loans.

            (4) Terms for the repayment of such loans, including periodic installments and deadlines for final repayment of such loans.

            E. The state superintendent of education shall annually submit a report to the legislature relative to such loan program, including but not limited to the following:

            (1) The number of loans made in the preceding year and the average amount loaned to a borrower.

            (2) The collection rate of the loans.

            (3) The effectiveness of the loan program.

            (4) The status of the fund used for such loans at the time such report is submitted and the viability of the fund at that time.

            Acts 1987, No. 316, §1; Acts 2017, No. 335, §1.