(a) For the fiscal year ending June 30, 2012, and each fiscal year thereafter, a local or regional board of education, a regional educational service center, a cooperative arrangement pursuant to § 10-158a, or any of the following entities that operate an interdistrict magnet school that assists the state in meeting its obligations pursuant to the decision in Sheff v. O’Neill, 238 Conn. 1 (1996), or any related stipulation or order in effect, as determined by the Commissioner of Education: (1) The Board of Trustees of the Community-Technical Colleges on behalf of a regional community-technical college, (2) the Board of Trustees of the Connecticut State University System on behalf of a state university, (3) the Board of Trustees for The University of Connecticut on behalf of the university, (4) the board of governors for an independent institution of higher education, as defined in subsection (a) of § 10a-173, or the equivalent of such a board, on behalf of the independent institution of higher education, and (5) any other third-party not-for-profit corporation approved by the Commissioner of Education, shall be eligible to apply for and accept grants for a school building project, as defined in § 10-282, as provided in chapter 173, and may be eligible for reimbursement, except as otherwise provided for, up to eighty per cent of the eligible cost of the school building project for an interdistrict magnet school facility, including any expenditure for the purchase of equipment, in accordance with this section. To be eligible for reimbursement under this section a school building project for an interdistrict magnet school facility shall meet the requirements for a school building project established in chapter 173, except that the Commissioner of Administrative Services, in consultation with the Commissioner of Education, may waive any requirement in said chapter for good cause.

(b) Subject to the provisions of subsection (a) of this section, the applicant shall receive current payments of scheduled estimated eligible project costs for the interdistrict magnet school facility, provided (1) the applicant files an application for a school building project, in accordance with § 10-283, by the date prescribed by the Commissioner of Administrative Services, (2) final plans and specifications for the project are approved pursuant to sections 10-291 and 10-292, and (3) such applicant submits to the Commissioner of Education, in such form as the commissioner prescribes, and the commissioner approves a plan for the operation of the facility which includes, but need not be limited to: A description of the educational programs to be offered, the completion date for the project, an estimated budget for the operation of the facility, written commitments for participation from the districts that will participate in the school and an analysis of the effect of the program on the reduction of racial, ethnic and economic isolation. The Commissioner of Education shall notify the Commissioner of Administrative Services and the secretary of the State Bond Commission when the provisions of subdivision (3) of this subsection have been met. Upon application to the Commissioner of Administrative Services, compliance with the provisions of subdivision (3) of this subsection and after authorization by the General Assembly pursuant to § 10-283, the applicant shall be eligible to receive progress payments in accordance with the provisions of § 10-287i.

(c) (1) If the school building ceases to be used as an interdistrict magnet school facility and the grant was provided for the purchase or construction of the facility, the Commissioner of Administrative Services, in consultation with the Commissioner of Education, shall determine whether (A) title to the building and any legal interest in appurtenant land shall revert to the state, or (B) the school district shall reimburse the state an amount equal to the difference between the amount received pursuant to this section and the amount the district would have been eligible to receive based on the percentage determined pursuant to § 10-285a, multiplied by the estimated eligible project costs.

(2) If the school building ceases to be used as an interdistrict magnet school facility and the grant was provided for the extension or major alteration of the facility, the school district shall reimburse the state the amount determined in accordance with subparagraph (B) of subdivision (1) of this subsection. A school district receiving a request for reimbursement pursuant to this subdivision shall reimburse the state not later than the close of the fiscal year following the year in which the request is made. If the school district fails to so reimburse the state, the Department of Administrative Services may request the Department of Education to withhold such amount from the total sum which is paid from the State Treasury to such school district or the town in which it is located or, in the case of a regional school district, the towns which comprise the school district. If the amount paid from the State Treasury is less than the amount due, the Department of Administrative Services shall collect such amount from the school district.

(d) The Commissioner of Administrative Services shall provide for a final audit of all project expenditures pursuant to this section and may require repayment of any ineligible expenditures, except that the Commissioner of Administrative Services may waive any audit deficiencies found during a final audit of all project expenditures pursuant to this section if the Commissioner of Administrative Services determines that granting such waiver is in the best interest of the state.