00SENATE BILL NO. 115                                                                                                     
01 "An Act relating to the use of money in the Alaska debt retirement fund;                                                
02 changing the name of the Alaska debt retirement fund to the Alaska public                                               
03 schools and public facilities fund; and providing for an effective date."                                               
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1.  AS 37.15.011 is repealed and reenacted to read:                                                        
06  Sec. 37.15.011.  ALASKA PUBLIC SCHOOLS AND PUBLIC FACILITIES                                                          
07 FUND.  (a)  The Alaska public schools and public facilities fund is established as a                                    
08 separate fund in the general fund.  The fund consists of all money appropriated to it.                                  
09  (b)  The Alaska public schools and public facilities fund shall be invested by                                        
10 the Department of Revenue so as to yield competitive market rates, as provided in                                       
11 AS 37.10.071.  Money in the fund may be appropriated                                                                    
12   (1)  to finance the design, construction, and maintenance of capital                                                 
13 projects;                                                                                                               
14   (2)  for the purposes set out in AS 37.15.012;                                                                       

01   (3)  to reimburse municipalities for obligations authorized under                                                    
02 AS 14.11.100; and                                                                                                       
03   (4)  to finance the acquisition of state facilities through lease-purchase                                           
04 agreements.                                                                                                             
05    * Sec. 2.  AS 37.15.012 is amended to read:                                                                          
06  Sec. 37.15.012.  CONTINUING DEBT SERVICE APPROPRIATION.  The                                                          
07 amounts required annually to pay the principal, interest, and redemption premium on                                     
08 all issued and outstanding general obligation bonds of the state are appropriated each                                  
09 fiscal year from the Alaska public schools and public facilities [DEBT                                                
10 RETIREMENT] fund to the state bond committee to make all required payments of                                           
11 principal, interest, and redemption premium.  If the balance of the Alaska public                                      
12 schools and public facilities [DEBT RETIREMENT] fund is insufficient to fully pay                                      
13 these amounts, the necessary additional amounts are appropriated from the general                                       
14 fund to the state bond committee to make all required payments of principal, interest,                                  
15 and redemption premium.                                                                                                 
16    * Sec. 3.  AS 37.15.015(a) is amended to read:                                                                       
17  (a)  Before a general or special election in which a bond issue is offered for                                        
18 ratification, the state bond committee shall publish a notice of existing state bonded                                  
19 indebtedness at least once a week for three consecutive weeks in a newspaper of                                         
20 general circulation in each of the four judicial districts of the state.  The first notice                              
21 shall be published at least 20 days before the date of the election.  A notice must                                     
22 contain                                                                                                                 
23   (1)  the current total bonded indebtedness of the state;                                                             
24   (2)  the cost of the debt service on the current indebtedness;                                                       
25   (3)  the projected amount of state general obligation debt principal that                                            
26 could be issued and paid for from the Alaska public schools and public facilities                                     
27 [DEBT RETIREMENT] fund;                                                                                                 
28   (4)  the estimated debt service requirements for the bond issue offered                                              
29 for ratification; and                                                                                                   
30   (5)  whether the bond issue offered for ratification will be repaid with                                             
31 amounts from the Alaska public schools and public facilities [DEBT RETIREMENT]                                        

01 fund.                                                                                                                   
02    * Sec. 4.  AS 37.15.170(c) is amended to read:                                                                       
03  (c)  Before December 1 of each year, the state bond committee shall report to                                         
04 the governor and the legislature the current fund balance in the Alaska public schools                                 
05 and public facilities [DEBT RETIREMENT] fund.  The report must contain an                                              
06 estimate of the amount of state general obligation debt principal that could be issued                                  
07 and paid for from the fund.                                                                                             
08    * Sec. 5.  This Act takes effect immediately under AS 01.10.070(c).