HB 322: "An Act relating to the financing of construction and major maintenance of public school facilities; authorizing the commissioner of revenue to sell the right to receive a portion of the anticipated revenue from a certain tobacco litigation settlement to the Alaska Housing Finance Corporation; authorizing the issuance of bonds by the Alaska Housing Finance Corporation with proceeds to finance public school construction and major maintenance grants; providing for the creation of subsidiary corporations of the Alaska Housing Finance Corporation for the purpose of financing or facilitating the financing of public school construction and major maintenance grants; relating to the annual public school construction and major maintenance grant application and approval process; providing for allocation of additional reimbursement of public school construction debt; and providing for an effective date."
00HOUSE BILL NO. 322 01 "An Act relating to the financing of construction and major maintenance of 02 public school facilities; authorizing the commissioner of revenue to sell the right 03 to receive a portion of the anticipated revenue from a certain tobacco litigation 04 settlement to the Alaska Housing Finance Corporation; authorizing the issuance of 05 bonds by the Alaska Housing Finance Corporation with proceeds to finance public 06 school construction and major maintenance grants; providing for the creation of 07 subsidiary corporations of the Alaska Housing Finance Corporation for the purpose 08 of financing or facilitating the financing of public school construction and major 09 maintenance grants; relating to the annual public school construction and major 10 maintenance grant application and approval process; providing for allocation of 11 additional reimbursement of public school construction debt; and providing for an 12 effective date." 13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 14 * Section 1. The uncodified law of the State of Alaska is amended by adding a new
01 section to read: 02 INTENT. In connection with the authorization contained in sec. 3(b) of this Act, the 03 legislature restates and reaffirms its intent as expressed in sec. 1, ch. 129, SLA 1998, that the 04 sum of withdrawals for repayment of bonds under sec. 3(b) of this Act and for all other 05 purposes described in sec. 1, ch. 129, SLA 1998, should not exceed the Alaska Housing 06 Finance Corporation's net income for the preceding fiscal year, which the Alaska Housing 07 Finance Corporation projects to be $103,000,000 for the fiscal years beginning with 2000 08 through 2008, for a total during that nine-year period of $927,000,000. 09 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section 10 to read: 11 SALE OF RIGHT TO RECEIVE ANTICIPATED SPECIAL REVENUE. (a) The 12 commissioner of revenue is authorized to sell to the Alaska Housing Finance Corporation the 13 right to receive a portion of the revenue derived from the settlement of State of Alaska v. 14 Philip Morris, Inc., et al, No. 1JU-97-915CI (Alaska Super. 1997). 15 (b) The proceeds of the sale of the right to receive revenue sold under (a) of this 16 section are anticipated to be not less than $269,000,000, and the proceeds will be used to 17 finance state grants for construction and major maintenance of public school facilities, as 18 provided in sec. 3 of this Act. 19 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section 20 to read: 21 BOND AUTHORIZATION AND PROVISIONS. (a) Notwithstanding the limitation 22 in AS 18.56.090 or other provisions of law, the Alaska Housing Finance Corporation or a 23 subsidiary corporation created under AS 18.56.086 is authorized to issue revenue bonds in 24 principal amounts sufficient to acquire the right to receive revenue described in sec. 2 of this 25 Act from the commissioner of revenue at a price agreed upon by the Alaska Housing Finance 26 Corporation and the commissioner of revenue. The bonds may be special, limited obligations 27 of the Alaska Housing Finance Corporation or of the subsidiary corporation secured solely by 28 the right to receive revenue sold to the Alaska Housing Finance Corporation under sec. 2 of 29 this Act, and the Alaska Housing Finance Corporation or the subsidiary corporation may 30 include in agreements with the bondholders a pledge of the right to receive that revenue and 31 the promise of the state to honor that pledge.
01 (b) In addition to the authorization provided by (a) of this section, and notwithstanding 02 the limitation contained in AS 18.56.090 or other provision of law, the Alaska Housing 03 Finance Corporation is authorized to issue $100,000,000 in bonds to finance state grants for 04 construction and major maintenance of public school facilities. 05 (c) Bonds issued under this section may be further secured by a capital reserve fund 06 described in AS 18.56.125. AS 18.56.110 - 18.56.190 apply to bonds issued under this 07 section. 08 (d) Subject to agreements with bondholders and appropriation as described in (e) of 09 this section, the Alaska Housing Finance Corporation shall make the proceeds of the bonds 10 issued under (a) and (b) of this section available to the Department of Education and Early 11 Development to pay for expenditures described in (e) of this section, including reimbursement 12 to the Department of Education and Early Development for such expenditures. 13 (e) Subject to appropriation and to the grant conditions of AS 14.11.017, the proceeds 14 of the bonds issued under (a) and (b) of this section shall be awarded as school construction 15 grants and major maintenance grants under AS 14.11.005 and 14.11.007 in the fiscal years 16 2001, 2002, and 2003, in the following amounts and for the following projects: 17 (1) in fiscal year 2001, 18 SCHOOL CONSTRUCTION PROJECTS AMOUNT 19 (A) Kashunamiut - Chevak School Replacement $ 27,008,049 20 (B) Lower Yukon - Pilot Station School Replacement 17,654,003 21 (C) Southwest Region - Manokotak School Replacement 13,316,704 22 (D) Lower Yukon - Kotlik School Replacement 17,910,901 23 (E) Bering Strait - Elim School Phase III 12,146,788 24 (2) in fiscal year 2001, 25 MAJOR MAINTENANCE PROJECTS AMOUNT 26 (A) Juneau City Borough - Auke Bay Elementary 27 Roof Replacement $ 653,842 28 (B) Petersburg City - Fascia/Soffit Repair/Replacement 29 Recovery of Funds 112,960 30 (C) Yukon-Koyukuk - Nulato Structural Repairs 400,724 31 (D) Northwest Arctic - Buckland Phase III, Renovation 1,406,396
01 (E) Juneau City Borough - Marie Drake Roof 02 Replacement 599,501 03 (F) Pribilof Island - St. George School Remodel 4,385,970 04 (G) Bering Strait - Shishmaref School Roof Replacement 05 and Renovation, Phase III 8,133,754 06 (H) Juneau City Borough - Harborview Elementary 07 Gym Roof Replacement 106,604 08 (I) Chatham - Angoon Elementary School Major 09 Maintenance 2,222,675 10 (J) Lake & Peninsula - Pedro Bay School 11 Renovation/Relocation/Reconstruction 1,557,714 12 (K) Wrangell City - Wrangell Elementary and High 13 School Structural Repairs 363,650 14 (L) Wrangell City - Elementary Schools Renovation 1,229,000 15 (M) Ketchikan - Schoenbar Renovation, Phase I 2,219,785 16 (N) Wrangell City - Middle School Renovation 168,518 17 (O) Hoonah City - Swimming Pool Sprinkler 212,458 18 (P) North Slope Borough - Tikigaq School 19 Renovation 3,713,270 20 (Q) Kenai Peninsula - McNeil Canyon Elementary 21 Wastewater Treatment System Replacement 125,300 22 (R) Tanana City - Tanana Kitchen Renovation 426,179 23 (S) Chatham - Angoon High School Major 24 Maintenance 1,687,794 25 (T) Iditarod Area - Takotna Community School 26 Water Project 179,512 27 (U) Iditarod Area - Blackwell School Heating 28 Renovation & Site Repair 280,010 29 (V) Wrangell City - Elementary & High Schools 30 Roof & Exterior Repairs 103,760 31 (W) Galena - Project Education Food Service
01 Renovation 159,088 02 (X) Delta/Greely - Fort Greely Utility Conversion 1,996,941 03 (3) in fiscal year 2002, 04 SCHOOL CONSTRUCTION PROJECTS AMOUNT 05 (A) Northwest Arctic - Noorvik K-12 06 Improvements $ 13,633,183 07 (B) Bering Strait - Golovin School Phase III 9,609,516 08 (C) Southwest Region - Togiak School 09 Replacement 24,587,542 10 (D) Bering Strait - Koyuk K-12 School 14,059,664 11 (E) Yupiit - Akiachak Elementary Replacement 12 and Secondary Renovation 14,370,287 13 (F) Yupiit - Tuluksak Elementary and Secondary 14 Improvement 14,641,631 15 (4) in fiscal year 2002, 16 MAJOR MAINTENANCE PROJECTS AMOUNT 17 (A) Sitka City Borough - Blatchley Middle 18 School Exterior Upgrade $ 317,638 19 (B) Southwest Region - Clark's Point Generator 20 Building 36,302 21 (C) Kenai Peninsula - Kenai Central High School 22 Reinsulate Exterior Walls 367,648 23 (D) Yakutat City - Yakutat High School Gym 24 Structural Repairs 86,936 25 (E) Dillingham City - Elementary School 26 Weatherization 146,860 27 (F) Yupiit - Akiak High School Repairs 329,954 28 (G) Juneau City Borough - High School Heating 29 & Ventilation 65,303 30 (H) Juneau City Borough - High School Auxiliary 31 Gym Floor Replacement 109,385
01 (I) Nenana City - Elementary Wing Sprinkler 02 Expansion 106,333 03 (J) Juneau City Borough - Juneau-Douglas High 04 School Renovation 9,097,138 05 (K) Alaska Gateway - Tok Multipurpose 06 Recreation Complex Renovation 969,494 07 (L) Southwest Region - Koliganek School 08 Weather Protection 379,555 09 (M) Galena - High School Repairs 128,662 10 (N) Juneau City Borough - Floyd Dryden Middle 11 School Gym Floor Replacement 108,236 12 (O) Hoonah City - Hoonah Schools Renovation 1,223,725 13 (P) Lower Yukon - Alakanuk Mechanical System 14 Upgrade 997,557 15 (Q) Kuspuk - George Morgan Sr. High School 16 Sewage System Replacement 411,975 17 (R) Lower Yukon - Emmonak Mechanical System 18 Upgrade 715,772 19 (S) Iditarod Area - David-Louis Memorial School 20 Asbestos Abatement & Demolition 417,246 21 (T) Denali Borough - Cantwell School Heating 22 and Sprinkler System 668,125 23 (U) Hydaburg City - Upgrading Facilities & 24 Tanks Project 899,948 25 (V) Lower Kuskokwim - Districtwide Water 26 Treatment, Subsurface Sources 1,470,000 27 (W) Denali Borough - Cantwell School Code 28 Upgrade & Roof Repair 334,468 29 (X) Dillingham City - Central Administration 30 Roof 50,250 31 (Y) Kenai Peninsula - Soldotna High School
01 Roofing Replacement 644,014 02 (Z) Tanana City - Tanana School Major 03 Maintenance 2,976,374 04 (AA) Yakutat City - Yakutat High School 05 Renovation 143,906 06 (BB) Chugach - Whittier Fire Alarm Replacement 40,431 07 (CC) Mat-Su Borough - Fire Alarm Systems, 08 5 Schools 620,648 09 (DD) Juneau City Borough - Gastineau 10 Elementary Heating Coil Replacement 133,053 11 (EE) Iditarod Area - Innoko River School 12 Water & Sewer Emergency 190,407 13 (FF) Denali Borough - Anderson School Heating 14 & Ventilation 1,164,266 15 (GG) Mat-Su Borough - Septic System Upgrade, 16 Colony High School 159,416 17 (HH) Mat-Su Borough - Fuel Tank Replacement 18 Districtwide 126,261 19 (II) Mat-Su Borough - Fire Sprinklers & Piping, 20 3 Schools 1,381,770 21 (JJ) Alaska Gateway - Tetlin Sewer Line 85,031 22 (KK) Dillingham City - High School Fire 23 Panel Replacement 64,623 24 (LL) Dillingham City - High School Gym Roof 158,151 25 (MM) Kuspuk - Crow Village Sam School 26 Sewage System Replacement, Chuathbaluk 349,272 27 (NN) Juneau City Borough - Floyd Dryden 28 Middle School Renovation 3,629,683 29 (5) in fiscal year 2003, 30 SCHOOL CONSTRUCTION PROJECTS AMOUNT 31 (A) Bering Strait - Teller K-12 School Expansion $ 11,825,312
01 (B) Bering Strait - White Mountain New K-12 02 School 10,787,903 03 (C) Lower Yukon - Hooper Bay Renovation 04 & Addition 15,459,618 05 (D) Southeast Island - Naukati School 06 Replacement 3,183,725 07 (E) Southeast Island - Howard Valentine School 08 Construction 2,095,651 09 (F) Lower Kuskokwim - Chief Paul Memorial 10 School Addition, Kipnuk 9,404,511 11 (G) Northwest Arctic - Ambler K-12 Improvements 5,788,063 12 (H) Copper River - Glennallen Elementary 13 School Replacement 6,005,661 14 (I) Iditarod Area - Lime Village School Addition 280,010 15 (J) Southwest Region - New Stuyahok K-12 16 Remodel & Expansion 410,096 17 (K) Northwest Arctic - Kiana K-12 Improvements 7,856,971 18 (L) Lower Kuskokwim - Chaptnguak School 19 Addition, Chefornak 288,707 20 (M) Kake City - Kake Elementary Addition 2,237,460 21 (N) Lower Kuskokwim - Dick R. Kiunya 22 Memorial School Addition, Kongiganak 205,060 23 (O) Lower Yukon - Scammon Bay Renovation 24 & Addition 433,029 25 (P) Cordova - Mount Eccles Renovation/Addition 3,026,456 26 (Q) Yukon Flats - Circle K-12 Replacement 1,953,949 27 (R) Yukon Flats - Arctic Village Addition & 28 Renovation 3,925,459 29 (S) Kodiak Island - Peterson Elementary 30 Addition 756,000 31 (T) Craig City - Craig Elementary School
01 Addition/Renovation 5,001,968 02 (U) Haines - Haines Kitchen Remodel & 03 Cafeteria Addition 435,448 04 (V) Lower Kuskokwim - Nightmute School 05 Addition 153,020 06 (W) Lower Kuskokwim - Joann Alexie Memorial 07 School Addition 172,029 08 (X) Lower Kuskokwim - Kwethluk School Addition 292,410 09 (Y) Lower Kuskokwim - Kwigillingok School 10 Addition 186,262 11 (Z) Lower Yukon - Sheldon Point Renovation 12 & Addition 294,806 13 (AA) Southeast Island - Covered Physical 14 Education Areas 211,174 15 (BB) Kuspuk - Joseph & Olinga Gregory 16 Elementary Replacement, Upper Kalskag 3,977,981 17 (CC) Aleutian Region - Nikolski Multipurpose 18 Room Addition 641,733 19 (6) in fiscal year 2003, 20 MAJOR MAINTENANCE PROJECTS AMOUNT 21 (A) Kake City - Kake Middle School 22 Renovation & Generator Installation $ 300,075 23 (B) Iditarod Area - Innoko River School 24 Vocational Education Code Upgrade 73,821 25 (C) Dillingham City - Elementary Gym Floor 51,562 26 (D) Copper River - Glennallen High School 27 Gym Floor Renovation 183,544 28 (E) Chugach - Tatitlek Fire Alarm Replacement 29 & Security System 35,471 30 (F) Kuspuk - Johnnie John Sr. School Sewage 31 System Replacement, Crooked Creek 356,257
01 (G) Iditarod Area - McGrath School Foundation 02 & Deterioration Repairs 188,835 03 (H) Mat-Su Borough - Boiler & Water Heater 04 Replacement, 4 Schools 221,051 05 (I) Sitka City Borough - Districtwide Major 06 Maintenance 482,058 07 (J) Chugach - Districtwide Fuel Tank Upgrades 227,642 08 (K) Galena - High School Floor Renovation 128,786 09 (L) Hoonah City - Hoonah Pool Upgrades 167,394 10 (M) Chugach - Tatitlek Generator Replacement 197,122 11 (N) Lower Kuskokwim - Callback School Boiler 12 Replacement 287,041 13 (O) Mat-Su Borough - Carpet Replacement, 6 14 Elementary Schools 423,507 15 (P) Yukon Flats - Chalkyitsik Sewage Lagoon 16 & Water Tank 780,341 17 (Q) Lower Kuskokwim - Districtwide Asbestos 18 Abatement 4,865,404 19 (R) Iditarod Area - McGrath School Heating & 20 Mechanical Design & Renovation 244,373 21 (S) Lower Kuskokwim - Districtwide ADA Upgrade 2,203,040 22 (T) Iditarod Area - Holy Cross School Shower, 23 Bathroom & Flooring Deterioration 49,384 24 (U) Yukon Flats - Fort Yukon High School 25 Gym Sprinklers 115,353 26 (V) Dillingham City - Oil Tank Removal/ 27 Replacement 51,562 28 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section 29 to read: 30 SUSPENSION OF STATUTORY SCHOOL CONSTRUCTION AND MAJOR 31 MAINTENANCE GRANT APPLICATION PROCESS. The provisions of AS 14.11.011,
01 14.11.013, 14.11.015, and 14.11.016 are suspended. 02 * Sec. 5. AS 14.11.100(a) is amended by adding a new paragraph to read: 03 (10) subject to (h), (i), (j), and (p) of this section and after projects 04 financed by the bonds, notes, or other indebtedness have been approved by the 05 commissioner, 70 percent of payments made by a municipality during the fiscal year 06 for the retirement of principal and interest on outstanding bonds, notes, or other 07 indebtedness authorized by the qualified voters of the municipality on or after July 1, 08 1997, to pay the costs that exceed $200,000 of school construction projects and major 09 maintenance projects that are approved under AS 14.07.020(a)(11). 10 * Sec. 6. AS 14.11.100(h) is amended to read: 11 (h) An allocation under (a)(4), (5), (6), (7), (8), [OR] (9) , or (10) of this 12 section for school construction begun after July 1, 1982, shall be reduced by the 13 amount of money used for the construction of residential space, hockey rinks, 14 planetariums, saunas, and other facilities for single purpose sporting or recreational 15 uses that are not suitable for other activities and by the money used for construction 16 that exceeds the amount needed for construction of a facility of efficient design as 17 determined by the department. An allocation under (a)(4), (5), (6), (7), (8), [OR] (9) , 18 or (10) of this section may not be reduced by the amount of money used for 19 construction of a small swimming pool, tank, or water storage facility used for water 20 sports. However, an allocation shall be reduced by the difference between the amount 21 of money used to construct a swimming pool that exceeds the standards adopted by 22 the department and the amount of money that would have been used to construct a 23 small swimming pool, tank, or water storage facility, as determined by the 24 commissioner. 25 * Sec. 7. AS 14.11.100(i) is amended to read: 26 (i) For the purposes of (a)(4) - (10) [(a)(4) - (9)] of this section, 27 (1) an indebtedness for bonds is incurred after the bonds are sold; 28 (2) reimbursement for a cash payment may only be made after the 29 payment is made to a vendor; and 30 (3) payments may not be made for costs that are incurred under a 31 contract after the contract has been released.
01 * Sec. 8. AS 14.11.100(j) is amended to read: 02 (j) Except as provided in (l) of this section, the state may not allocate money 03 to a municipality for a school construction project under (a)(5), (6), (7), [OR] (9) , or 04 (10) of this section unless the municipality complies with the requirements of (1) - (4) 05 of this subsection, the project is approved by the commissioner before the local vote 06 on the bond issue for the project or for bonds authorized after March 31, 1990, but on 07 or before April 30, 1993, the bonds are approved by the commissioner before 08 reimbursement by the state, and the local vote occurs before July 1, 1987, or after 09 June 30, 1988. In approving a project under this subsection, and to the extent required 10 under (a)(8) of this section, the commissioner shall require 11 (1) the municipality to include on the ballot for the bond issue, for 12 bonds authorized on or before March 31, 1990, or after April 30, 1993, the estimated 13 total cost of each project including estimated total interest, estimated annual operation 14 and maintenance costs, the estimated amounts that will be paid by the state and by the 15 municipality, and the approximate amount that would be due in annual taxes on 16 $100,000 in assessed value to retire the debt; 17 (2) that the bonds may not be refunded unless the annual debt service 18 on the refunding issue is not greater than the annual debt service on the original issue; 19 (3) that the bonds must be repaid in approximately equal annual 20 principal payments or approximately equal debt service payments over a period of at 21 least 10 years; 22 (4) the municipality to demonstrate need for the project by establishing 23 that the school district has 24 (A) projected long-term student enrollment that indicates the 25 district has inadequate facilities to meet present or projected enrollment; 26 (B) facilities that require repair or replacement in order to meet 27 health and safety laws or regulations or building codes; 28 (C) demonstrated that the project will result in a reduction in 29 annual operating costs that economically justifies the cost of the project; or 30 (D) facilities that require modification or rehabilitation for the 31 purpose of improving the instructional program.
01 * Sec. 9. AS 14.11.100 is amended by adding a new subsection to read: 02 (p) The total amount of public school construction projects approved for 03 reimbursement by the department under (a)(10) of this section 04 (1) may not exceed $150,000,000; and 05 (2) is allocated as follows: 06 (A) $60,000,000 is allocated to projects in a municipality with 07 a public school enrollment of 25,000 or more students in fiscal year 2000 as 08 determined under AS 14.17.600; 09 (B) $90,000,000 is allocated to projects in a municipality with 10 a public school enrollment of less than 25,000 students in fiscal year 2000 as 11 determined under AS 14.17.600. 12 * Sec. 10. AS 18.56 is amended by adding a new section to read: 13 Sec. 18.56.086. Creation of subsidiaries. The corporation may create 14 subsidiary corporations for the purpose of financing or facilitating the financing of 15 school construction grants and major maintenance grants under AS 14.11.005 - 16 14.11.020. A subsidiary corporation created under this section may be incorporated 17 under AS 10.20.146 - 10.20.166. The corporation may transfer assets of the 18 corporation to a subsidiary created under this section. A subsidiary created under this 19 section may borrow money and issue bonds as evidence of that borrowing and has all 20 the powers of the corporation that the corporation grants to it. Unless otherwise 21 provided by the corporation, the debts, liabilities, and obligations of a subsidiary 22 corporation created under this section are not the debts, liabilities, or obligations of the 23 corporation. 24 * Sec. 11. Section 4 of this Act is repealed July 1, 2002. 25 * Sec. 12. Section 4 of this Act takes effect immediately under AS 01.10.070(c). 26 * Sec. 13. Except as provided in sec. 12 of this Act, this Act takes effect July 1, 2000.