CSSB 7(FIN) AM: "An Act relating to grants for school construction, to reimbursement of school construction debt, and to school construction bonds issued by the Alaska Municipal Bond Bank Authority; and providing for an effective date."
00CS FOR SENATE BILL NO. 7(FIN) am 01 "An Act relating to grants for school construction, to reimbursement of school 02 construction debt, and to school construction bonds issued by the Alaska 03 Municipal Bond Bank Authority; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 14.11.013(b) is repealed and reenacted to read: 06 (b) The department shall recommend school construction grants in the order 07 of priority established by the grant review committee under AS 14.11.014. 08 * Sec. 2. AS 14.11.013(d) is amended to read: 09 (d) The department shall reduce a project budget by the cost of those portions 10 of a project design that the department determines (1) are for construction of student 11 residential space, planetariums, hockey rinks, saunas, and other facilities for single 12 purpose sporting or recreational uses that are not suitable for other activities; or (2) 13 do not meet the design guidelines specified under (f) or (g) of this section that are 14 applicable to the project. This subsection does not apply to funding for swimming
01 pools that meet criteria established by the department. 02 * Sec. 3. AS 14.11.013(e) is amended to read: 03 (e) By November 5, the department shall provide public notice of the grant 04 applications submitted under (a) of this section and the priorities established under 05 AS 14.11.014 [(b) OF THIS SECTION]. After public notice has been given, the 06 department shall, not later than December 1, hold a public hearing on the priorities 07 established under AS 14.11.014 [(b) OF THIS SECTION]. In this subsection, "public 08 notice" means notice published in a newspaper of general circulation and notice to 09 every person who has requested notice about the grant application program from the 10 department. 11 * Sec. 4. AS 14.11.013 is amended by adding new subsections to read: 12 (f) The department shall, in consultation with the Department of Transportation 13 and Public Facilities, develop standard regional design guidelines for the construction 14 of schools in the state. Standard regional school design guidelines shall be developed 15 for the arctic, interior, western, southcentral, and southeastern regions of the state. For 16 each school construction project for which a grant is requested under AS 14.11.011, 17 the department shall determine which standard regional school design guidelines are 18 applicable to that project. 19 (g) A prototypical design utilized by a district may be substituted for a 20 regional design required under (f) of this section if approved by the department. 21 * Sec. 5. AS 14.11 is amended by adding a new section to read: 22 Sec. 14.11.014. BOND REIMBURSEMENT AND GRANT REVIEW 23 COMMITTEE. (a) The commissioner shall establish a bond reimbursement and grant 24 review committee for the purpose of evaluating projects for which retirement of school 25 construction debt is requested, establishing the department's priorities among projects 26 for which school construction grants are requested, and preparing a construction grant 27 schedule. In making selections to the committee, the commissioner shall seek to 28 maintain a regional statewide balance on the committee. The committee shall consist 29 of the commissioner or the commissioner's designee and seven other people selected 30 by the commissioner as follows: 31 (1) one person shall be a retired or active classroom teacher or school
01 employee; 02 (2) one person shall be an engineer licensed under AS 08.48 and 03 licensed as a construction contractor under AS 08.18; 04 (3) one person shall be an architect in private practice licensed under 05 AS 08.48; 06 (4) one person shall be employed by the Department of Transportation 07 and Public Facilities; 08 (5) one person shall be a nonvoting member and shall have five years 09 of experience in city or borough school district facilities management; 10 (6) one person shall be a nonvoting member and shall have five years 11 of experience in municipal facilities management; and 12 (7) one person shall be a nonvoting member and shall have five years 13 of experience in regional educational attendance area facilities management. 14 (b) In evaluating projects for bond reimbursement or establishing priorities 15 among grants as required under this section, the grant review committee shall evaluate 16 all of the following factors, without establishing an absolute priority for any one factor: 17 (1) emergency requirements; 18 (2) priorities assigned by the district to the projects requested; 19 (3) new local elementary and secondary facilities; 20 (4) existing regional, community, and school facilities, and their 21 condition; this paragraph does not include administrative facilities; 22 (5) the amount of district operating funds expended for maintenance; 23 and 24 (6) other program options for accomplishing the project's objectives. 25 (c) Members of the committee serve without compensation, but members who 26 are not representing the department or the Department of Transportation and Public 27 Facilities are entitled to per diem and travel expenses authorized for boards and 28 commissions under AS 39.20.180. 29 (d) The commissioner may not select a person to serve on the bond 30 reimbursement and grant review committee under (a)(1) - (3) of this section if that 31 person has been employed, including employment by contract, by a district in
01 connection with a grant project submitted to the department under AS 14.11.011(a) and 02 the employment occurred within the past three years. 03 * Sec. 6. AS 14.11.100(a) is amended to read: 04 (a) During each fiscal year, the state shall allocate to a municipality that is a 05 school district, the following sums: 06 (1) payments made by the municipality during the fiscal year two years 07 earlier for the retirement of principal and interest on outstanding bonds, notes, or other 08 indebtedness incurred before July 1, 1977, to pay costs of school construction; 09 (2) 90 percent of 10 (A) payments made by the municipality during the fiscal year 11 two years earlier for the retirement of principal and interest on outstanding 12 bonds, notes, or other indebtedness incurred after June 30, 1977, and before 13 July 1, 1978, to pay costs of school construction; 14 (B) cash payments made after June 30, 1976, and before July 1, 15 1978, by the municipality during the fiscal year two years earlier to pay costs 16 of school construction; 17 (3) 90 percent of 18 (A) payments made by the municipality during the fiscal year 19 two years earlier for the retirement of principal and interest on outstanding 20 bonds, notes, or other indebtedness incurred after June 30, 1978, and before 21 January 1, 1982, to pay costs of school construction projects approved under 22 AS 14.07.020(a)(11); 23 (B) cash payments made after June 30, 1978, and before July 1, 24 1982, by the municipality during the fiscal year two years earlier to pay costs 25 of school construction projects approved under AS 14.07.020(a)(11); 26 (4) subject to (h) and (i) of this section, up to 90 percent of 27 (A) payments made by the municipality during the current fiscal 28 year for the retirement of principal and interest on outstanding bonds, notes, or 29 other indebtedness incurred after December 31, 1981, and authorized by the 30 qualified voters of the municipality before July 1, 1983, to pay costs of school 31 construction, additions to schools, and major rehabilitation projects that exceed
01 $25,000 and are approved under AS 14.07.020(a)(11); and 02 (B) cash payments made after June 30, 1982, and before July 1, 03 1983, by the municipality during the fiscal year two years earlier to pay costs 04 of school construction, additions to schools, and major rehabilitation projects 05 that exceed $25,000 and are approved under AS 14.07.020(a)(11); and 06 (C) payments made by the municipality during the current fiscal 07 year for the retirement of principal and interest on outstanding bonds, notes, or 08 other indebtedness to pay costs of school construction, additions to schools, and 09 major rehabilitation projects that exceed $25,000 and are submitted to the 10 department for approval under AS 14.07.020(a)(11) before July 1, 1983, and 11 approved by the qualified voters of the municipality before October 15, 1983, 12 not to exceed a total project cost of (i) $6,600,000 if the annual growth rate of 13 average daily membership of the municipality is more than 7 percent but less 14 than 12 percent, or (ii) $20,000,000 if the annual growth rate of average daily 15 membership of the municipality is 12 percent or more; payments made by a 16 municipality under this paragraph on total project costs that exceed the amounts 17 set out in (i) and (ii) of this paragraph are subject to (5)(A) of this subsection; 18 (5) subject to (h), (i), and (j) of this section, 80 percent of 19 (A) payments made by the municipality during the fiscal year 20 for the retirement of principal and interest on 21 (i) outstanding bonds, notes, or other indebtedness 22 authorized by the qualified voters of the municipality after June 30, 23 1983, but before March 31, 1990, to pay costs of school construction, 24 additions to schools, and major rehabilitation projects that exceed 25 $25,000 and are approved under AS 14.07.020(a)(11); 26 (ii) outstanding bonds, notes, or other indebtedness 27 authorized by the qualified voters of the municipality before July 1, 28 1989, and reauthorized before November 1, 1989, to pay costs of school 29 construction, additions to schools, and major rehabilitation projects that 30 exceed $25,000 and are approved under AS 14.07.020(a)(11); and 31 (B) cash payments made after June 30, 1983, by the
01 municipality during the fiscal year two years earlier to pay costs of school 02 construction, additions to schools, and major rehabilitation projects that exceed 03 $25,000 and are approved by the department before July 1, 1990, under 04 AS 14.07.020(a)(11); 05 (6) subject to (h), (i), (j), and (n) of this section, 70 percent of 06 payments made by the municipality during the fiscal year for the retirement of 07 principal and interest on outstanding bonds, notes, or other indebtedness 08 authorized by the qualified voters of the municipality after April 1, 1993, but 09 before November 5, 1997, to pay costs of school construction, additions to schools, 10 and major rehabilitation projects that exceed $200,000 and are approved under 11 AS 14.07.020(a)(11); 12 (7) subject to (h), (i), (j), and (n) of this section, 70 percent of 13 payments made after July 1, 1994, by the municipality during the fiscal year for 14 the retirement of principal and interest on outstanding bonds, notes, or other 15 indebtedness authorized by the qualified voters of the municipality after 16 March 31, 1990, but before April 1, 1993, to pay costs of school construction, 17 additions to schools, and major rehabilitation projects. 18 * Sec. 7. AS 14.11.100(a)(6) is repealed and reenacted to read: 19 (6) subject to (h), (i), (j), and (n) of this section, 70 percent of 20 payments made by the municipality during the fiscal year for the retirement of 21 principal and interest on outstanding bonds, notes, or other indebtedness authorized by 22 the qualified voters of the municipality after April 1, 1993, but before November 8, 23 1994, to pay costs of school construction, additions to schools, and major rehabilitation 24 projects that exceed $200,000 and are approved under AS 14.07.020(a)(11); 25 * Sec. 8. AS 14.11.100(j) is amended to read: 26 (j) Except as provided in (l) of this section, the state may not allocate money 27 to a municipality for a school construction project under (a)(5), (6), or (7) of this 28 section unless the municipality complies with the requirements of (1) - (4) of this 29 subsection, the project is approved by the commissioner before the local vote on the 30 bond issue for the project or for bonds authorized after March 31, 1990, but before 31 November 5, 1997, the bonds are approved by the commissioner before
01 reimbursement by the state, and the local vote occurs before July 1, 1987, or after 02 June 30, 1988. In approving a project under this subsection, the commissioner shall 03 require 04 (1) the municipality to include on the ballot for the bond issue, for 05 bonds authorized on or before March 31, 1990, the estimated total cost of each 06 project including estimated total interest, estimated annual operation and maintenance 07 costs, the estimated amounts that will be paid by the state and by the municipality, and 08 the approximate amount that would be due in annual taxes on $100,000 in assessed 09 value to retire the debt; 10 (2) that the bonds may not be refunded unless the annual debt service 11 on the refunding issue is not greater than the annual debt service on the original issue; 12 (3) that the bonds must be repaid in approximately equal annual 13 principal payments or approximate equal debt service payments over a period of at 14 least 10 years; 15 (4) the municipality to demonstrate need for the project by establishing 16 that the school district has 17 (A) projected long-term student enrollment that indicates the 18 district has inadequate facilities to meet present or projected enrollment; or 19 (B) facilities that require repair or replacement in order to meet 20 health and safety laws or regulations or building codes. 21 * Sec. 9. AS 14.11.100 is amended by adding new subsections to read: 22 (n) The total amount of school construction projects approved for 23 reimbursement by the department under (a)(6) or (7) of this section may not exceed 24 $500,000,000. 25 (o) Subject to (h), (i), and (j) of this section, the state shall allocate to the 26 Alaska Municipal Bond Bank Authority 70 percent of payments made by the authority 27 during the fiscal year for retirement of principal and interest on outstanding bonds, 28 notes, or other indebtedness issued under AS 44.85.080 after April 1, 1993, but before 29 November 5, 1997, to pay costs of school construction, additions to schools, and major 30 rehabilitation projects that exceed $200,000 and are approved under AS 14.07.020(11). 31 * Sec. 10. AS 44.85.080 is amended by adding a new paragraph to read:
01 (23) receive appropriations from the legislature for retirement of 02 principal and interest on bonds, notes, or other indebtedness issued after April 1, 1993, 03 but before November 5, 1997, to pay costs of school construction, additions to schools, 04 and major rehabilitation projects that exceed $200,000 and are approved under 05 AS 14.07.020(a)(11). 06 * Sec. 11. AS 44.85.180(c) is amended to read: 07 (c) Notwithstanding the provisions of (a) and (b) of this section, the total 08 amount of bond bank authority bonds and notes outstanding at any one time, except 09 bonds or notes issued to fund or refund bonds or notes, may not exceed $800,000,000, 10 of which $500,000,000 may only be issued to fund school construction, additions 11 to schools, or major school rehabilitation projects that are approved under 12 AS 14.07.020(a)(11) [$300,000,000]. 13 * Sec. 12. TRANSITION. Notwithstanding AS 14.11.013(f), enacted in sec. 4 of this Act, 14 the Department of Education is not required to determine applicable standard regional school 15 designs for grant projects unless the grant project is submitted to the Department of Education 16 under AS 14.11.011 after July 1, 1994. 17 * Sec. 13. APPLICABILITY. This Act does not apply to school construction projects that 18 are submitted to the Department of Education under AS 14.11.011(a) before the effective date 19 of this section. 20 * Sec. 14. Section 7 of this Act takes effect on the day that the lieutenant governor certifies 21 that a majority of the votes cast on the constitutional amendment described in sec. 15 of this 22 Act were opposed to the amendment. 23 * Sec. 15. AS 14.11.100(o), enacted in sec. 9 of this Act, and secs. 10 and 11 of this Act 24 take effect on the effective date of an amendment to the Constitution of the State of Alaska 25 that creates the Alaska school construction and maintenance fund and that is proposed by the 26 Eighteenth Alaska State Legislature. 27 * Sec. 16. Except as provided in secs. 14 and 15 of this Act, this Act takes effect 28 immediately under AS 01.10.070(c).