SB 264: "An Act relating to a reimbursement program for municipal bonds, notes, or other indebtedness incurred for school construction; and providing for an effective date."
00 SENATE BILL NO. 264 01 "An Act relating to a reimbursement program for municipal bonds, notes, or other 02 indebtedness incurred for school construction; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 14.11.100(a) is amended to read: 05 (a) During each fiscal year, the state shall allocate to a municipality that is a 06 school district the following sums: 07 (1) payments made by the municipality during the fiscal year two years 08 earlier for the retirement of principal and interest on outstanding bonds, notes, or other 09 indebtedness incurred before July 1, 1977, to pay costs of school construction; 10 (2) 90 percent of 11 (A) payments made by the municipality during the fiscal year 12 two years earlier for the retirement of principal and interest on outstanding 13 bonds, notes, or other indebtedness incurred after June 30, 1977, and before 14 July 1, 1978, to pay costs of school construction;
01 (B) cash payments made after June 30, 1976, and before July 1, 02 1978, by the municipality during the fiscal year two years earlier to pay costs 03 of school construction; 04 (3) 90 percent of 05 (A) payments made by the municipality during the fiscal year 06 two years earlier for the retirement of principal and interest on outstanding 07 bonds, notes, or other indebtedness incurred after June 30, 1978, and before 08 January 1, 1982, to pay costs of school construction projects approved under 09 AS 14.07.020(a)(11); 10 (B) cash payments made after June 30, 1978, and before July 1, 11 1982, by the municipality during the fiscal year two years earlier to pay costs 12 of school construction projects approved under AS 14.07.020(a)(11); 13 (4) subject to (h) and (i) of this section, up to 90 percent of 14 (A) payments made by the municipality during the current 15 fiscal year for the retirement of principal and interest on outstanding bonds, 16 notes, or other indebtedness incurred after December 31, 1981, and authorized 17 by the qualified voters of the municipality before July 1, 1983, to pay costs of 18 school construction, additions to schools, and major rehabilitation projects that 19 exceed $25,000 and are approved under AS 14.07.020(a)(11); 20 (B) cash payments made after June 30, 1982, and before July 1, 21 1983, by the municipality during the fiscal year two years earlier to pay costs 22 of school construction, additions to schools, and major rehabilitation projects 23 that exceed $25,000 and are approved under AS 14.07.020(a)(11); and 24 (C) payments made by the municipality during the current 25 fiscal year for the retirement of principal and interest on outstanding bonds, 26 notes, or other indebtedness to pay costs of school construction, additions to 27 schools, and major rehabilitation projects that exceed $25,000 and are 28 submitted to the department for approval under AS 14.07.020(a)(11) before 29 July 1, 1983, and approved by the qualified voters of the municipality before 30 October 15, 1983, not to exceed a total project cost of (i) $6,600,000 if the 31 annual growth rate of average daily membership of the municipality is more
01 than 7 percent but less than 12 percent, or (ii) $20,000,000 if the annual growth 02 rate of average daily membership of the municipality is 12 percent or more; 03 payments made by a municipality under this subparagraph on total project 04 costs that exceed the amounts set out in (i) and (ii) of this subparagraph are 05 subject to (5)(A) of this subsection; 06 (5) subject to (h) - (j) of this section, 80 percent of 07 (A) payments made by the municipality during the fiscal year 08 for the retirement of principal and interest on outstanding bonds, notes, or 09 other indebtedness authorized by the qualified voters of the municipality 10 (i) after June 30, 1983, but before March 31, 1990, to 11 pay costs of school construction, additions to schools, and major 12 rehabilitation projects that exceed $25,000 and are approved under 13 AS 14.07.020(a)(11); or 14 (ii) before July 1, 1989, and reauthorized before 15 November 1, 1989, to pay costs of school construction, additions to 16 schools, and major rehabilitation projects that exceed $25,000 and are 17 approved under AS 14.07.020(a)(11); and 18 (B) cash payments made after June 30, 1983, by the 19 municipality during the fiscal year two years earlier to pay costs of school 20 construction, additions to schools, and major rehabilitation projects that exceed 21 $25,000 and are approved by the department before July 1, 1990, under 22 AS 14.07.020(a)(11); 23 (6) subject to (h) - (j) and (m) of this section, 70 percent of payments 24 made by the municipality during the fiscal year for the retirement of principal and 25 interest on outstanding bonds, notes, or other indebtedness authorized by the qualified 26 voters of the municipality on or after April 30, 1993, but before July 1, 1996, to pay 27 costs of school construction, additions to schools, and major rehabilitation projects 28 that exceed $200,000 and are approved under AS 14.07.020(a)(11); 29 (7) subject to (h) - (j) and (m) of this section, 70 percent of payments 30 made by the municipality during the fiscal year for the retirement of principal and 31 interest on outstanding bonds, notes, or other indebtedness authorized by the qualified
01 voters of the municipality after March 31, 1990, but before April 30, 1993, to pay 02 costs of school construction, additions to schools, and major rehabilitation projects; 03 (8) subject to (h), (i), (j)(2) - (4), and (n) of this section and after 04 projects funded by the bonds, notes, or other indebtedness have been approved by the 05 commissioner, 70 percent of payments made by the 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 1995, but before July 1, 1998, to pay costs of school construction, additions to 09 schools, and major rehabilitation projects that exceed $200,000 and are approved 10 under AS 14.07.020(a)(11); 11 (9) subject to (h), (i), (j), and (n) of this section and after projects 12 funded by the bonds, notes, or other indebtedness have been approved by the 13 commissioner, 70 percent of payments made by the municipality during the fiscal year 14 for the retirement of principal and interest on outstanding bonds, notes, or other 15 indebtedness authorized by the qualified voters of the municipality on or after July 1, 16 1998, but before July 1, 2004, to pay costs of school construction, additions to 17 schools, and major rehabilitation projects that exceed $200,000 and are approved 18 under AS 14.07.020(a)(11); 19 (10) subject to (h), (i), (j)(2) - (4), and (o) of this section, and after 20 projects funded by the bonds, notes, or other indebtedness have been approved by the 21 commissioner, 70 percent of payments made by the municipality during the fiscal year 22 for the retirement of principal and interest on outstanding bonds, notes, or other 23 indebtedness authorized by the qualified voters of the municipality on or after June 30, 24 1998, to pay costs of school construction, additions to schools, and major 25 rehabilitation projects that exceed $200,000, are approved under AS 14.07.020(a)(11), 26 and are not reimbursed under (n) of this section; 27 (11) subject to (h) - (j) and (q) of this section, and after projects 28 funded by the bonds, notes, or other indebtedness have been approved by the 29 commissioner, 70 percent of payments made by the municipality during the fiscal 30 year for the retirement of principal and interest on outstanding bonds, notes, or 31 other indebtedness authorized by the qualified voters of the municipality on or
01 after June 30, 2002, to pay costs of school construction, additions to schools, and 02 major rehabilitation projects that exceed $200,000, are approved under 03 AS 14.07.020(a)(11), and are not reimbursed under (n) or (o) of this section. 04 * Sec. 2. AS 14.11.100(h) is amended to read: 05 (h) An allocation under (a)(4), (5), (6), (7), (8), (9), [OR] (10), or (11) of this 06 section for school construction begun after July 1, 1982, shall be reduced by the 07 amount of money used for the construction of residential space, hockey rinks, 08 planetariums, saunas, and other facilities for single purpose sporting or recreational 09 uses that are not suitable for other activities and by the money used for construction 10 that exceeds the amount needed for construction of a facility of efficient design as 11 determined by the department. An allocation under (a)(4), (5), (6), (7), (8), (9), [OR] 12 (10), or (11) of this section may not be reduced by the amount of money used for 13 construction of a small swimming pool, tank, or water storage facility used for water 14 sports. However, an allocation shall be reduced by the difference between the amount 15 of money used to construct a swimming pool that exceeds the standards adopted by 16 the department and the amount of money that would have been used to construct a 17 small swimming pool, tank, or water storage facility, as determined by the 18 commissioner. 19 * Sec. 3. AS 14.11.100(i) is amended to read: 20 (i) For the purposes of (a)(4) - 11 [(10)] of this section, 21 (1) an indebtedness for bonds is incurred after the bonds are sold; 22 (2) reimbursement for a cash payment may only be made after the 23 payment is made to a vendor; and 24 (3) payments may not be made for costs that are incurred under a 25 contract after the contract has been released. 26 * Sec. 4. AS 14.11.100(j) is amended to read: 27 (j) Except as provided in (l) of this section, the state may not allocate money 28 to a municipality for a school construction project under (a)(5), (6), (7), [OR] (9), or 29 (11) of this section unless the municipality complies with the requirements of (1) - (4) 30 of this subsection, the project is approved by the commissioner before the local vote 31 on the bond issue for the project or for bonds authorized after March 31, 1990, but on
01 or before April 30, 1993, the bonds are approved by the commissioner before 02 reimbursement by the state, and the local vote occurs before July 1, 1987, or after 03 June 30, 1988. In approving a project under this subsection, and to the extent required 04 under (a)(8) or (10) of this section, the commissioner shall require 05 (1) the municipality to include on the ballot for the bond issue, for 06 bonds authorized on or before March 31, 1990, or after April 30, 1993, the estimated 07 total cost of each project including estimated total interest, estimated annual operation 08 and maintenance costs, the estimated amounts that will be paid by the state and by the 09 municipality, and the approximate amount that would be due in annual taxes on 10 $100,000 in assessed value to retire the debt; 11 (2) that the bonds may not be refunded unless the annual debt service 12 on the refunding issue is not greater than the annual debt service on the original issue; 13 (3) that the bonds must be repaid in approximately equal annual 14 principal payments or approximately equal debt service payments over a period of at 15 least 10 years; 16 (4) the municipality to demonstrate need for the project by establishing 17 that the school district has 18 (A) projected long-term student enrollment that indicates the 19 district has inadequate facilities to meet present or projected enrollment; 20 (B) facilities that require repair or replacement in order to meet 21 health and safety laws or regulations or building codes; 22 (C) demonstrated that the project will result in a reduction in 23 annual operating costs that economically justifies the cost of the project; or 24 (D) facilities that require modification or rehabilitation for the 25 purpose of improving the instructional program. 26 * Sec. 5. AS 14.11.100 is amended by adding a new subsection to read: 27 (q) The total amount of school construction projects approved for 28 reimbursement by the department under (a)(11) of this section 29 (1) may not exceed $113,000,000; and 30 (2) shall be allocated as follows: 31 (A) $50,000,000 shall be allocated to projects in a municipality
01 with a public school enrollment of 25,000 or more students in fiscal year 2001 02 as determined under AS 14.17.500; 03 (B) $15,000,000 shall be allocated to projects in a municipality 04 with a public school enrollment of at least 15,000 but less than 25,000 students 05 in fiscal year 2001 as determined under AS 14.17.500; 06 (C) $13,000,000 shall be allocated to projects in a municipality 07 with a public school enrollment of at least 12,000 but less than 15,000 students 08 in fiscal year 2001 as determined under AS 14.17.500; 09 (D) $10,000,000 shall be allocated to projects in a municipality 10 with a public school enrollment of at least 9,000 but less than 12,000 students 11 in fiscal year 2001 as determined under AS 14.17.500; 12 (E) $25,000,000 shall be allocated to projects in a municipality 13 with a public school enrollment of less than 9,000 students in fiscal year 2001 14 as determined under AS 14.17.500. 15 * Sec. 6. This Act takes effect July 1, 2002.