CCS SB 73: "An Act relating to reimbursement of municipal bonds for school construction; relating to a lease-purchase agreement for the construction, equipping, and financing of a state virology laboratory in Fairbanks to be operated by the Department of Health and Social Services; relating to the issuance of certificates of participation for the laboratory; relating to the use of certain investment income for certain construction and equipment costs for the laboratory; and providing for an effective date."
00 CONFERENCE CS FOR SENATE BILL NO. 73 01 "An Act relating to reimbursement of municipal bonds for school construction; relating 02 to a lease-purchase agreement for the construction, equipping, and financing of a state 03 virology laboratory in Fairbanks to be operated by the Department of Health and Social 04 Services; relating to the issuance of certificates of participation for the laboratory; 05 relating to the use of certain investment income for certain construction and equipment 06 costs for the laboratory; and providing for an effective date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 09 to read: 10 INTENT. It is the intent of the legislature that the amount of money to be used for the 11 construction and equipping of a new state virology laboratory in Fairbanks is $24,200,000. 12 Of that amount, it is the intent of the legislature that 13 (1) $24,000,000 shall come from the proceeds of the certificates of
01 participation to be issued by the state bond committee under sec. 5 of this Act; and 02 (2) $200,000 shall come from the investment income earned on the proceeds 03 of the sale of the certificates of participation described in sec. 5 of this Act. 04 * Sec. 2. 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; 15 (B) cash payments made after June 30, 1976, and before July 1, 16 1978, by the municipality during the fiscal year two years earlier to pay costs 17 of school construction; 18 (3) 90 percent of 19 (A) payments made by the municipality during the fiscal year 20 two years earlier for the retirement of principal and interest on outstanding 21 bonds, notes, or other indebtedness incurred after June 30, 1978, and before 22 January 1, 1982, to pay costs of school construction projects approved under 23 AS 14.07.020(a)(11); 24 (B) cash payments made after June 30, 1978, and before July 1, 25 1982, by the municipality during the fiscal year two years earlier to pay costs 26 of school construction projects approved under AS 14.07.020(a)(11); 27 (4) subject to (h) and (i) of this section, up to 90 percent of 28 (A) payments made by the municipality during the current 29 fiscal year for the retirement of principal and interest on outstanding bonds, 30 notes, or other indebtedness incurred after December 31, 1981, and authorized 31 by the qualified voters of the municipality before July 1, 1983, to pay costs of
01 school construction, additions to schools, and major rehabilitation projects that 02 exceed $25,000 and are approved under AS 14.07.020(a)(11); 03 (B) cash payments made after June 30, 1982, and before July 1, 04 1983, by the municipality during the fiscal year two years earlier to pay costs 05 of school construction, additions to schools, and major rehabilitation projects 06 that exceed $25,000 and are approved under AS 14.07.020(a)(11); and 07 (C) payments made by the municipality during the current 08 fiscal year for the retirement of principal and interest on outstanding bonds, 09 notes, or other indebtedness to pay costs of school construction, additions to 10 schools, and major rehabilitation projects that exceed $25,000 and are 11 submitted to the department for approval under AS 14.07.020(a)(11) before 12 July 1, 1983, and approved by the qualified voters of the municipality before 13 October 15, 1983, not to exceed a total project cost of (i) $6,600,000 if the 14 annual growth rate of average daily membership of the municipality is more 15 than seven percent but less than 12 percent, or (ii) $20,000,000 if the annual 16 growth rate of average daily membership of the municipality is 12 percent or 17 more; payments made by a municipality under this subparagraph on total 18 project costs that exceed the amounts set out in (i) and (ii) of this subparagraph 19 are subject to (5)(A) of this subsection; 20 (5) subject to (h) - (j) of this section, 80 percent of 21 (A) payments made by the municipality during the fiscal year 22 for the retirement of principal and interest on outstanding bonds, notes, or 23 other indebtedness authorized by the qualified voters of the municipality 24 (i) after June 30, 1983, but before March 31, 1990, to 25 pay costs of school construction, additions to schools, and major 26 rehabilitation projects that exceed $25,000 and are approved under 27 AS 14.07.020(a)(11); or 28 (ii) before July 1, 1989, and reauthorized before 29 November 1, 1989, to pay costs of school construction, additions to 30 schools, and major rehabilitation projects that exceed $25,000 and are 31 approved under AS 14.07.020(a)(11); and
01 (B) cash payments made after June 30, 1983, by the 02 municipality during the fiscal year two years earlier to pay costs of school 03 construction, additions to schools, and major rehabilitation projects that exceed 04 $25,000 and are approved by the department before July 1, 1990, under 05 AS 14.07.020(a)(11); 06 (6) subject to (h) - (j) and (m) of this section, 70 percent of payments 07 made by the municipality during the fiscal year for the retirement of principal and 08 interest on outstanding bonds, notes, or other indebtedness authorized by the qualified 09 voters of the municipality on or after April 30, 1993, but before July 1, 1996, to pay 10 costs of school construction, additions to schools, and major rehabilitation projects 11 that exceed $200,000 and are approved under AS 14.07.020(a)(11); 12 (7) subject to (h) - (j) and (m) of this section, 70 percent of payments 13 made by the municipality during the fiscal year for the retirement of principal and 14 interest on outstanding bonds, notes, or other indebtedness authorized by the qualified 15 voters of the municipality after March 31, 1990, but before April 30, 1993, to pay 16 costs of school construction, additions to schools, and major rehabilitation projects; 17 (8) subject to (h), (i), (j)(2) - (5), and (n) of this section and after 18 projects funded by the bonds, notes, or other indebtedness have been approved by the 19 commissioner, 70 percent of payments made by the municipality during the fiscal year 20 for the retirement of principal and interest on outstanding bonds, notes, or other 21 indebtedness authorized by the qualified voters of the municipality on or after July 1, 22 1995, but before July 1, 1998, to pay costs of school construction, additions to 23 schools, and major rehabilitation projects that exceed $200,000 and are approved 24 under AS 14.07.020(a)(11); 25 (9) subject to (h), (i), (j)(2) - (5), and (n) of this section and after 26 projects funded by the bonds, notes, or other indebtedness have been approved by the 27 commissioner, 70 percent of payments made by the municipality during the fiscal year 28 for the retirement of principal and interest on outstanding bonds, notes, or other 29 indebtedness authorized by the qualified voters of the municipality on or after July 1, 30 1998, but before July 1, 2006, to pay costs of school construction, additions to 31 schools, and major rehabilitation projects that exceed $200,000 and are approved
01 under AS 14.07.020(a)(11); 02 (10) subject to (h), (i), (j)(2) - (5), and (o) of this section, and after 03 projects funded by the bonds, notes, or other indebtedness have been approved by the 04 commissioner, 70 percent of payments made by the municipality during the fiscal year 05 for the retirement of principal and interest on outstanding bonds, notes, or other 06 indebtedness authorized by the qualified voters of the municipality on or after June 30, 07 1998, to pay costs of school construction, additions to schools, and major 08 rehabilitation projects that exceed $200,000, are approved under AS 14.07.020(a)(11), 09 and are not reimbursed under (n) of this section; 10 (11) subject to (h), (i), and (j)(2) - (5) of this section, and after projects 11 funded by the bonds, notes, or other indebtedness have been approved by the 12 commissioner, 70 percent of payments made by a municipality during the fiscal year 13 for the retirement of principal and interest on outstanding bonds, notes, or other 14 indebtedness authorized by the qualified voters of the municipality on or after June 30, 15 1999, but before January 1, 2005, to pay costs of school construction, additions to 16 schools, and major rehabilitation projects and education-related facilities that exceed 17 $200,000, are approved under AS 14.07.020(a)(11), and are not reimbursed under (n) 18 or (o) of this section; 19 (12) subject to (h), (i), and (j)(2), (3), and (5) of this section, 60 percent 20 of payments made by a 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 on or after June 30, 1999, but before January 1, 23 2005, to pay costs of school construction, additions to schools, and major 24 rehabilitation projects and education-related facilities that exceed $200,000, are 25 reviewed under AS 14.07.020(a)(11), and are not reimbursed under (n) or (o) of this 26 section; 27 (13) subject to (h), (i), (j)(2) - (5), and (q) of this section, and after 28 projects funded by the tax exempt bonds, notes, or other indebtedness have been 29 approved by the commissioner, 70 percent of payments made by a municipality 30 during the fiscal year for the retirement of principal and interest on outstanding 31 tax exempt bonds, notes, or other indebtedness authorized by the qualified voters
01 of the municipality on or after June 30, 1999, but before October 31, 2006, to pay 02 costs of school construction, additions to schools, and major rehabilitation 03 projects and education-related facilities that exceed $200,000, are approved 04 under AS 14.07.020(a)(11), and are not reimbursed under (n) or (o) of this 05 section; 06 (14) subject to (h), (i), (j)(2), (3), and (5), and (q) of this section, 60 07 percent of payments made by a municipality during the fiscal year for the 08 retirement of principal and interest on outstanding tax exempt bonds, notes, or 09 other indebtedness authorized by the qualified voters of the municipality on or 10 after June 30, 1999, but before October 31, 2006, to pay costs of school 11 construction, additions to schools, and major rehabilitation projects and 12 education-related facilities that exceed $200,000, are reviewed under 13 AS 14.07.020(a)(11), and are not reimbursed under (n) or (o) of this section; 14 (15) subject to (h), (i), (j)(2) - (5), and (r) of this section, and after 15 projects funded by the bonds, notes, or other indebtedness have been approved 16 by the commissioner, 90 percent of payments made by a municipality during the 17 fiscal year for the retirement of principal and interest on outstanding bonds, 18 notes, or other indebtedness authorized by the qualified voters of the 19 municipality on or after June 30, 1999, but before October 31, 2006, to pay costs 20 of school construction, additions to schools, and major rehabilitation projects and 21 education-related facilities that exceed $200,000, are approved under 22 AS 14.07.020(a)(11), meet the 10 percent participating share requirement for a 23 municipal school district under AS 14.11.008(b), and are not reimbursed under 24 (n) or (o) of this section. 25 * Sec. 3. 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) - (5) 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 on or 31 before April 30, 1993, 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, and to the extent required 03 under (a)(8) - (15) [(a)(8) - (12)] of this section, the commissioner shall require 04 (1) the municipality to include on the ballot for the bond issue, for 05 bonds authorized on or before March 31, 1990, or after April 30, 1993, the estimated 06 total cost of each project including estimated total interest, estimated annual operation 07 and maintenance costs, the estimated amounts that will be paid by the state and by the 08 municipality, and the approximate amount that would be due in annual taxes on 09 $100,000 in assessed 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 approximately 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; 19 (B) facilities that require repair or replacement in order to meet 20 health and safety laws or regulations or building codes; 21 (C) demonstrated that the project will result in a reduction in 22 annual operating costs that economically justifies the cost of the project; or 23 (D) facilities that require modification or rehabilitation for the 24 purpose of improving the instructional program; 25 (5) evidence acceptable to the department that the district 26 (A) has a preventive maintenance plan that 27 (i) includes a computerized maintenance management 28 program, cardex system, or other formal systematic means of tracking 29 the timing and costs associated with planned and completed 30 maintenance activities, including scheduled preventive maintenance; 31 (ii) addresses energy management for buildings owned
01 or operated by the district; 02 (iii) includes a regular custodial care program for 03 buildings owned or operated by the district; 04 (iv) includes preventive maintenance training for 05 facility managers and maintenance employees; and 06 (v) includes renewal and replacement schedules for 07 electrical, mechanical, structural, and other components of facilities 08 owned or operated by the district; and 09 (B) is adequately following the preventive maintenance plan. 10 * Sec. 4. AS 14.11.100 is amended by adding new subsections to read: 11 (q) The total amount of school construction projects approved for 12 reimbursement by the department under (a)(13) and (a)(14) of this section 13 (1) may not exceed $177,256,000; 14 (2) after June 30, 1999, and until October 31, 2006, shall be allocated 15 as follows: 16 (A) $61,925,000 to projects in a municipality with a public 17 school enrollment of 45,000 or more students in fiscal year 2005, as 18 determined under AS 14.17.500; 19 (B) $40,570,000 to projects in a municipality with a public 20 school enrollment of at least 14,600 but less than 20,000 students in fiscal year 21 2005 as determined under AS 14.17.500; 22 (C) $20,000,000 to projects in a municipality with a public 23 school enrollment of at least 10,000 but less than 14,600 students in fiscal year 24 2005, as determined under AS 14.17.500; 25 (D) $2,588,000 to projects in a municipality with a public 26 school enrollment of at least 7,500 but less than 10,000 students in fiscal year 27 2005, as determined under AS 14.17.500; 28 (E) $5,995,000 to projects in a municipality with a public 29 school enrollment of at least 4,000 but less than 6,000 students in fiscal year 30 2005, as determined under AS 14.17.500; 31 (F) $1,237,000 to projects in a municipality with a public
01 school enrollment of at least 2,400 but less than 2,800 students in fiscal year 02 2005, as determined under AS 14.17.500; 03 (G) $1,100,000 to projects in a municipality with a public 04 school enrollment of at least 2,200 but less than 2,400 students in fiscal year 05 2005, as determined under AS 14.17.500; 06 (H) $7,164,000 to projects in a municipality with a public 07 school enrollment of at least 1,300 but less than 1,500 students in fiscal year 08 2005, as determined under AS 14.17.500; 09 (I) $1,260,000 to projects in a municipality with a public 10 school enrollment of at least 740 but less than 757 students in fiscal year 2005, 11 as determined under AS 14.17.500; 12 (J) $608,000 to projects in a municipality with a public school 13 enrollment of at least 650 but less than 700 students in fiscal year 2005, as 14 determined under AS 14.17.500; 15 (K) $32,000,000 to projects in a municipality with a public 16 school enrollment of at least 500 but less than 600 students in fiscal year 2005, 17 as determined under AS 14.17.500; 18 (L) $2,809,000 to projects in a municipality with a public 19 school enrollment of at least 370 but less than 390 students in fiscal year 2005, 20 as determined under AS 14.17.500. 21 (r) The total amount of school construction projects approved for 22 reimbursement by the department under (a)(15) of this section 23 (1) may not exceed $14,644,000; 24 (2) after June 30, 1999, and until October 31, 2006, shall be allocated 25 as follows: 26 (A) $6,522,000 to projects in a municipality with a public 27 school enrollment of at least 1,925 but less than 2,025 students in fiscal year 28 2005, as determined under AS 14.17.500; 29 (B) $8,122,000 to projects in a municipality with a public 30 school enrollment of at least 398 but less than 400 students in fiscal year 2005, 31 as determined under AS 14.17.500.
01 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 02 read: 03 NOTICE AND APPROVAL OF ENTRY INTO AND FINANCING OF A LEASE- 04 PURCHASE AGREEMENT. (a) Subject to annual appropriation, the Department of 05 Administration is authorized to enter into a lease-purchase agreement for a state virology 06 laboratory in Fairbanks to be constructed under the lease-purchase agreement and to be 07 operated by the Department of Health and Social Services. 08 (b) The state bond committee is authorized to provide for the issuance of certificates 09 of participation in one or more series in the aggregate principal amount of $24,000,000 for 10 the construction of a state virology laboratory in Fairbanks under the lease-purchase 11 agreement authorized in (a) of this section. The remaining balance of the construction and 12 equipping costs shall be paid from investment income of $200,000 earned on the proceeds of 13 the sale of the certificates of participation. The estimated total cost of construction, 14 acquisition, and other costs of the project is $24,200,000. The estimated annual amount of 15 rental obligations under the lease-purchase agreement is $2,375,000. The estimated total 16 lease payment for the full term of the lease-purchase agreement is $35,572,890. In this 17 subsection, "cost of construction" includes credit enhancement and underwriting expenses, 18 rating agency fees, bond counsel fees, financial advisor fees, printing fees, advertising fees, 19 capitalized interest, and interest earnings used for lease payments. 20 (c) The state bond committee may contract for credit enhancement, underwriting, 21 credit ratings, bond counsel, financial advisor, printing, advertising, and trustee services that 22 the committee considers necessary in financing the project described in this section. 23 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 24 read: 25 APPROVAL OF AGREEMENT. Section 5 of this Act constitutes the approval 26 required by AS 36.30.085. 27 * Sec. 7. This Act takes effect immediately under AS 01.10.070(c).