HB 217: "An Act relating to school construction bond debt reimbursement."
00 HOUSE BILL NO. 217 01 "An Act relating to school construction bond debt reimbursement." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. AS 14.11.100(j) is amended to read: 04 (j) Except as provided in (l) of this section, the state may not allocate money 05 to a municipality for a school construction project under (a)(5), (6), or (7) of this 06 section unless the municipality complies with the requirements of (1) - (5) of this 07 subsection, the project is approved by the commissioner before the local vote on the 08 bond issue for the project or for bonds authorized after March 31, 1990, but on or 09 before April 30, 1993, the bonds are approved by the commissioner before 10 reimbursement by the state, and the local vote occurs before July 1, 1987, or after 11 June 30, 1988. In approving a project under this subsection, and to the extent required 12 under (a)(8) - (17) of this section, the commissioner shall require 13 (1) the municipality to include on the ballot for the bond issue, for 14 bonds authorized on or before March 31, 1990, or after April 30, 1993, the estimated 15 total cost of each project including estimated total interest, estimated annual operation
01 and maintenance costs, the estimated amounts that will be paid by the state and by the 02 municipality, and the approximate amount that would be due in annual taxes on 03 $100,000 in assessed value to retire the debt; 04 (2) that the bonds may not be refunded unless the annual debt service 05 on the refunding issue is not greater than the annual debt service on the original issue; 06 (3) that the bonds must be repaid in approximately equal annual 07 principal payments or approximately equal debt service payments over a period of at 08 least 10 years; 09 (4) the municipality to demonstrate need for the project by establishing 10 that the school district has 11 (A) projected long-term student enrollment that indicates the 12 district has inadequate facilities to meet present or projected enrollment; 13 (B) facilities that require repair or replacement in order to meet 14 health and safety laws or regulations or building codes; 15 (C) demonstrated that the project will result in a reduction in 16 annual operating costs that economically justifies the cost of the project; [OR] 17 (D) facilities that require modification or rehabilitation for the 18 purpose of improving the instructional program; or 19 (E) facilities that are inadequate or require repair, 20 replacement, or modification to meet present or projected vocational or 21 technical education needs; 22 (5) evidence acceptable to the department that the district 23 (A) has a preventive maintenance plan that 24 (i) includes a computerized maintenance management 25 program, cardex system, or other formal systematic means of tracking 26 the timing and costs associated with planned and completed 27 maintenance activities, including scheduled preventive maintenance; 28 (ii) addresses energy management for buildings owned 29 or operated by the district; 30 (iii) includes a regular custodial care program for 31 buildings owned or operated by the district;
01 (iv) includes preventive maintenance training for 02 facility managers and maintenance employees; and 03 (v) includes renewal and replacement schedules for 04 electrical, mechanical, structural, and other components of facilities 05 owned or operated by the district; and 06 (B) is adequately following the preventive maintenance plan. 07 * Sec. 2. AS 14.11.100 is amended by adding a new subsection to read: 08 (s) Notwithstanding the requirements for debt reimbursement under (a)(16) 09 and (17) of this section, the percentage of payments made by a municipality during the 10 fiscal year for the retirement of principal of and interest on an indebtedness for a 11 project that is approved by the commissioner and authorized by the voters of the 12 municipality in which the project is located may be prorated under this section. If less 13 than half of the costs associated with an approved project qualify under (a)(16) of this 14 section for 70 percent reimbursement, the state shall allocate the 70 percent 15 reimbursement rate for only those portions that qualify for the 70 percent 16 reimbursement rate and allocate 60 percent reimbursement for the remaining portions 17 of the project that qualify under (a)(17) of this section. If more than half of the costs 18 associated with an approved project qualify under (a)(16) of this section for 70 percent 19 reimbursement, the state shall allocate 70 percent reimbursement for the entire project.