CSSB 11(FIN): "An Act establishing a 50 percent reimbursement program for municipal bonds, notes, or other indebtedness incurred for school construction; relating to administrative costs of reimbursing municipal school construction debt; relating to municipal school construction project eligibility requirements for receiving state reimbursement; and providing for an effective date."
00CS FOR SENATE BILL NO. 11(FIN) 01 "An Act establishing a 50 percent reimbursement program for municipal bonds, 02 notes, or other indebtedness incurred for school construction; relating to 03 administrative costs of reimbursing municipal school construction debt; relating to 04 municipal school construction project eligibility requirements for receiving state 05 reimbursement; and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 14.11.100(a) is amended to read: 08 (a) During each fiscal year, the state shall allocate to a municipality that is a 09 school district [,] the following sums: 10 (1) payments made by the municipality during the fiscal year two years 11 earlier for the retirement of principal and interest on outstanding bonds, notes, or other 12 indebtedness incurred before July 1, 1977, to pay costs of school construction; 13 (2) 90 percent of 14 (A) payments made by the municipality during the fiscal year
01 two years earlier for the retirement of principal and interest on outstanding 02 bonds, notes, or other indebtedness incurred after June 30, 1977, and before 03 July 1, 1978, to pay costs of school construction; 04 (B) cash payments made after June 30, 1976, and before July 1, 05 1978, by the municipality during the fiscal year two years earlier to pay costs 06 of school construction; 07 (3) 90 percent of 08 (A) payments made by the municipality during the fiscal year 09 two years earlier for the retirement of principal and interest on outstanding 10 bonds, notes, or other indebtedness incurred after June 30, 1978, and before 11 January 1, 1982, to pay costs of school construction projects approved under 12 AS 14.07.020(a)(11); 13 (B) cash payments made after June 30, 1978, and before July 1, 14 1982, by the municipality during the fiscal year two years earlier to pay costs 15 of school construction projects approved under AS 14.07.020(a)(11); 16 (4) subject to (h) and (i) of this section, up to 90 percent of 17 (A) payments made by the municipality during the current fiscal 18 year for the retirement of principal and interest on outstanding bonds, notes, or 19 other indebtedness incurred after December 31, 1981, and authorized by the 20 qualified voters of the municipality before July 1, 1983, to pay costs of school 21 construction, additions to schools, and major rehabilitation projects that exceed 22 $25,000 and are approved under AS 14.07.020(a)(11); [AND] 23 (B) cash payments made after June 30, 1982, and before July 1, 24 1983, by the municipality during the fiscal year two years earlier to pay costs 25 of school construction, additions to schools, and major rehabilitation projects 26 that exceed $25,000 and are approved under AS 14.07.020(a)(11); and 27 (C) 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 to pay costs of school construction, additions to schools, and 30 major rehabilitation projects that exceed $25,000 and are submitted to the 31 department for approval under AS 14.07.020(a)(11) before July 1, 1983, and
01 approved by the qualified voters of the municipality before October 15, 1983, 02 not to exceed a total project cost of (i) $6,600,000 if the annual growth rate of 03 average daily membership of the municipality is more than 7 percent but less 04 than 12 percent, or (ii) $20,000,000 if the annual growth rate of average daily 05 membership of the municipality is 12 percent or more; payments made by a 06 municipality under this subparagraph [PARAGRAPH] on total project costs 07 that exceed the amounts set out in (i) and (ii) of this subparagraph 08 [PARAGRAPH] are subject to (5)(A) of this subsection; 09 (5) subject to (h) - (j) [(h), (i), AND (j)] of this section, 80 percent of 10 (A) payments made by the municipality during the fiscal year 11 for the retirement of principal and interest on 12 [(i)] outstanding bonds, notes, or other indebtedness 13 authorized by the qualified voters of the municipality 14 (i) after June 30, 1983, but before March 31, 1990, to 15 pay costs of school construction, additions to schools, and major 16 rehabilitation projects that exceed $25,000 and are approved under 17 AS 14.07.020(a)(11); or 18 (ii) [OUTSTANDING BONDS, NOTES, OR OTHER 19 INDEBTEDNESS AUTHORIZED BY THE QUALIFIED VOTERS OF 20 THE MUNICIPALITY] before July 1, 1989, and reauthorized before 21 November 1, 1989, to pay costs of school construction, additions to 22 schools, and major rehabilitation projects that exceed $25,000 and are 23 approved under AS 14.07.020(a)(11); and 24 (B) cash payments made after June 30, 1983, by the 25 municipality during the fiscal year two years earlier to pay costs of school 26 construction, additions to schools, and major rehabilitation projects that exceed 27 $25,000 and are approved by the department before July 1, 1990, under 28 AS 14.07.020(a)(11); 29 (6) subject to (h) - (j) [(h), (i), (j),] and (m) of this section, 70 percent 30 of payments made by the municipality during the fiscal year for the retirement of 31 principal and interest on outstanding bonds, notes, or other indebtedness authorized by
01 the qualified voters of the municipality on or after April 30, 1993, but before July 1, 02 1995, to pay costs of school construction, additions to schools, and major rehabilitation 03 projects that exceed $200,000 and are approved under AS 14.07.020(a)(11); 04 (7) subject to (h) - (j) [(h), (i), (j),] and (m) of this section, 70 percent 05 of payments made by the municipality during the fiscal year for the retirement of 06 principal and interest on outstanding bonds, notes, or other indebtedness authorized by 07 the qualified voters of the municipality after March 31, 1990, but before April 30, 08 1993, to pay costs of school construction, additions to schools, and major rehabilitation 09 projects; 10 (8) subject to (h) - (j) of this section, 50 percent of payments made 11 by the municipality during the fiscal year for the retirement of principal and 12 interest on outstanding bonds, notes, or other indebtedness authorized by the 13 qualified voters of the municipality on or after July 1, 1997, to pay costs of school 14 construction, additions to schools, and major rehabilitation projects. 15 * Sec. 2. AS 14.11.100(b) is amended to read: 16 (b) The commissioner shall administer the program of reimbursement 17 authorized under this section and shall provide by regulation for the filing of 18 applications for reimbursement, the form of proof of costs for which application for 19 reimbursement is made, and other regulations necessary to administer the program. 20 An amount due a municipality for reimbursement under this section may not be 21 reduced by the cost to the department to administer the reimbursement program. 22 The commissioner shall exclude from the total school construction cost of the local 23 district all state and federal funds included in these costs except funds provided under 24 this section and AS 43.50.140. In approving applications for reimbursement, the 25 commissioner shall offset against the amount of reimbursement authorized the amount 26 of any funds distributed to the borough or city in the second preceding fiscal year from 27 the school fund provided for in AS 43.50.140. 28 * Sec. 3. AS 14.11.100(h) is amended to read: 29 (h) An allocation under (a)(4), (5), (6), (7), or (8) [(5)] of this section for 30 school construction begun after July 1, 1982, shall be reduced by the amount of money 31 used for the construction of residential space, hockey rinks, planetariums, saunas, and
01 other facilities for single purpose sporting or recreational uses that are not suitable for 02 other activities and by the money used for construction that exceeds the amount needed 03 for construction of a facility of efficient design as determined by the department. An 04 allocation under (a)(4), (5), (6), (7), or (8) [(5)] of this section may not be reduced by 05 the amount of money used for construction of a small swimming pool, tank, or water 06 storage facility used for water sports. However, an allocation shall be reduced by the 07 difference between the amount of money used to construct a swimming pool that 08 exceeds the standards adopted by the department and the amount of money that would 09 have been used to construct a small swimming pool, tank, or water storage facility, as 10 determined by the commissioner. 11 * Sec. 4. AS 14.11.100(i) is amended to read: 12 (i) For the purposes of (a)(4), (5), (6), (7), and (8) [(5)] of this section, 13 (1) an indebtedness for bonds is incurred after the bonds are sold; 14 (2) reimbursement for a cash payment may only be made after the 15 payment is made to a vendor; and 16 (3) payments may not be made for costs that are incurred under a 17 contract after the contract has been released. 18 * Sec. 5. AS 14.11.100(j) is amended to read: 19 (j) Except as provided in (l) of this section, the state may not allocate money 20 to a municipality for a school construction project under (a)(5), (6), [OR] (7), or (8) 21 of this section unless the municipality complies with the requirements of (1) - (4) of 22 this subsection, the project is approved by the commissioner before the local vote on 23 the bond issue for the project or for bonds authorized after March 31, 1990, but on or 24 before April 30, 1993, the bonds are approved by the commissioner before 25 reimbursement by the state, and the local vote occurs before July 1, 1987, or after 26 June 30, 1988. In approving a project under this subsection, the commissioner shall 27 require 28 (1) the municipality to include on the ballot for the bond issue, for 29 bonds authorized on or before March 31, 1990, or after April 30, 1993, the estimated 30 total cost of each project including estimated total interest, estimated annual operation 31 and maintenance costs, the estimated amounts that will be paid by the state and by the
01 municipality, and the approximate amount that would be due in annual taxes on 02 $100,000 in assessed value to retire the debt; 03 (2) that the bonds may not be refunded unless the annual debt service 04 on the refunding issue is not greater than the annual debt service on the original issue; 05 (3) that the bonds must be repaid in approximately equal annual 06 principal payments or approximately [APPROXIMATE] equal debt service payments 07 over a period of at least 10 years; 08 (4) the municipality to demonstrate need for the project by establishing 09 that the school district has 10 (A) projected long-term student enrollment that indicates the 11 district has inadequate facilities to meet present or projected enrollment; [OR] 12 (B) facilities that require repair or replacement in order to meet 13 health and safety laws or regulations or building codes; 14 (C) demonstrated that the project will result in a reduction 15 in annual operating costs that economically justifies the cost of the project; 16 or 17 (D) facilities that require modification or rehabilitation for 18 the purpose of improving the instructional program. 19 * Sec. 6. This Act takes effect immediately under AS 01.10.070(c).