Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. Notwithstanding the provisions of any general or special law or the district agreement to the contrary, the Southern Worcester County Regional Vocational School District may borrow, upon the vote of two-thirds of all members of the district school committee, at one time or from time to time, and as provided for in this act, such sums as the commissioner of revenue shall approve as related to funds determined to be missing from the district in fiscal year 2000 and previous fiscal years, so as to permit continued operation of the school and to prevent default on certain notes of the district, but in no event an amount in the aggregate in excess of $5,000,000, and to issue therefor bonds or notes of the district. Upon the vote of the school district, and as approved by the director of accounts, the proceeds of such bonds or notes shall be used to pay notes, payrolls, employment tax withholdings and taxes, expenses or liabilities deriving directly or indirectly from the loss of funds disclosed during fiscal year 2000. Any amounts recovered from fidelity bonds, employee dishonesty policies or restitution under civil or criminal proceedings shall be applied to reduce the amounts borrowed under this act.

Bonds or notes issued under this act shall be in such form, and include such terms and conditions, as the director of accounts shall approve and shall be general obligation bonds or notes of the district. Bonds or notes issued under authority of this act shall be eligible to be issued as qualified bonds or notes pursuant to chapter 44A of the General Laws. So far as apt, the provisions of chapter 44 shall apply to bonds or notes issued under authority of this act. The maturity of any bond or note issued under authority of this act shall not be after June 30, 2010.

The maturities of each issue of bonds or notes authorized under this act, including any refunding bonds or notes, may, if approved by the district officers authorized to issue bonds or notes and the director of accounts, be arranged so that for each issue the amounts payable in the several years for principal and interest combined are as nearly equal as is practicable in the opinion of the officers authorized to issue such bonds or notes, or in the alternative, in accordance with a schedule providing for a more rapid amortization of principal. If notes rather than bonds are issued, refunding notes must provide for payment from revenue funds so that the amount of refunding notes shall not exceed the unpaid principal amount which would have been outstanding if serial bonds had been issued.

SECTION 2. In any year during which bonds or notes authorized under this act remain outstanding, the district shall submit an audit for the preceding year to the director of accounts. Such audit shall be prepared by a certified public accountant in accordance with generally accepted accounting principles and shall include accompanying financial statements. Such report and a copy of the proposed budget must be received and accepted by said director prior to submission of the annual school district budget to member municipalities as set forth in section 16B of chapter 71 of the General Laws.

In any year during which bonds or notes authorized under this act remain outstanding, this district shall not issue any bond, note or other form of indebtedness without written notification to, and the approval of the commissioner of revenue.

SECTION 3. Payment of principal of and interest on bonds or notes issued under this act shall be included in the computation of net school spending as defined in section 2 of chapter 70 of the General Laws.

SECTION 4. This act shall take effect upon its passage.