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SCS CSHB 212(FIN): "An Act relating to funding for school construction and major maintenance; relating to the regional educational attendance area and small municipal school district fund; and providing for an effective date."

00 SENATE CS FOR CS FOR HOUSE BILL NO. 212(FIN) 01 "An Act relating to funding for school construction and major maintenance; relating to 02 the regional educational attendance area and small municipal school district fund; and 03 providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 14.11.013(a) is amended to read: 06 (a) With regard to projects for which grants are requested under AS 14.11.011, 07 the department shall 08 (1) annually review the six-year plans submitted by each district under 09 AS 14.11.011(b) and recommend to the board a revised and updated six-year capital 10 improvement project grant schedule that serves the best interests of the state and each 11 district; in recommending projects for this schedule, the department shall verify that 12 each proposed project meets the criteria established under AS 14.11.014(b) and 13 qualifies as a project required to 14 (A) avert imminent danger or correct life-threatening

01 situations; 02 (B) house students who would otherwise be unhoused; for 03 purposes of this subparagraph, students are considered unhoused if the students 04 attend school in temporary facilities; 05 (C) protect the structure of existing school facilities; 06 (D) correct building code deficiencies that require major repair 07 or rehabilitation in order for the facility to continue to be used for the 08 educational program; 09 (E) achieve an operating cost savings; 10 (F) modify or rehabilitate facilities for the purpose of 11 improving the instructional program; 12 (G) meet an educational need not specified in (A) - (F) of this 13 paragraph, identified by the department; 14 (2) prepare an estimate of the amount of money needed to finance each 15 project; 16 (3) provide to the governor, by November 1, and to the legislature 17 within the first 10 days of each regular legislative session, a revised and updated six- 18 year capital improvement project grant schedule, together with a proposed schedule of 19 appropriations; 20 (4) encourage each school district to use previously approved 21 school construction design plans and building systems if the use will result in cost 22 savings for the project; 23 (5) consider the regionally based model school standards 24 developed under AS 14.11.017(d). 25 * Sec. 2. AS 14.11.013(b) is amended to read: 26 (b) In preparing the construction grant schedule, the department shall establish 27 priorities among projects for which grants are requested and shall award school 28 construction grants in the order of priority established. In establishing priorities the 29 department shall evaluate at least the following factors, without establishing an 30 absolute priority for any one factor: 31 (1) emergency requirements;

01 (2) priorities assigned by the district to the projects requested; 02 (3) new local elementary and secondary programs; 03 (4) existing regional, community, and school facilities, and their 04 condition; this paragraph does not include administrative facilities; 05 (5) the amount of district operating funds expended for maintenance; 06 [AND] 07 (6) other options that would reduce or eliminate the need for the 08 request; 09 (7) the district's use of previously approved school construction 10 design plans and building systems if the use will result in cost savings for the 11 project; and 12 (8) consideration of regionally based model school standards 13 under AS 14.11.017(d). 14 * Sec. 3. AS 14.11.013(c) is amended to read: 15 (c) The department may 16 (1) modify a project request when necessary to achieve cost-effective 17 school construction; 18 (2) require that a school construction project be phased for purposes of 19 planning, design, and construction; [AND] 20 (3) reject project requests and omit them from the six-year schedule 21 due to 22 (A) incomplete information or documentation provided by the 23 district; 24 (B) a determination by the department that existing facilities 25 can adequately serve the program requirements, or that alternative projects are 26 in the best interests of the state; 27 (C) a determination that the project is not in the best interest of 28 the state; and 29 (4) require that a school construction project include all or part of 30 the regionally based model school standards developed under AS 14.11.017(d) or 31 use previously approved design plans and building systems that would result in

01 capital or operating cost savings for the project. 02 * Sec. 4. AS 14.11.017 is amended by adding a new subsection to read: 03 (d) The department shall develop and periodically update regionally based 04 model school construction standards that describe acceptable building systems and 05 anticipated costs and establish school design ratios to achieve efficient and cost- 06 effective school construction. In developing the standards, the department shall 07 consider the standards and criteria developed under AS 14.11.014(b). 08 * Sec. 5. AS 14.11.030(a) is amended to read: 09 (a) The regional educational attendance area and small municipal school 10 district school fund is created as an account in the general fund to be used, in addition 11 to other funding sources, to fund projects approved under AS 14.11.025 for the costs 12 of school construction and major maintenance in regional educational attendance 13 areas and small municipal school districts. The primary function of the fund is to 14 fund school construction projects. 15 * Sec. 6. AS 14.11.030(b) is amended to read: 16 (b) Legislative appropriations, including appropriations of interest earned on 17 the fund, shall be deposited in the fund established under this section. The 18 unobligated and unexpended cash [FUND] balance of the fund may not exceed 19 $70,000,000. 20 * Sec. 7. AS 14.11.035 is amended to read: 21 Sec. 14.11.035. Report on school construction and major maintenance 22 funding. Every [BEGINNING IN] February [2013], the department shall provide to 23 the governor and the legislature an annual report on the effectiveness of the school 24 construction and major maintenance grants, state aid for school construction and 25 major maintenance in regional educational attendance areas, and state aid for costs of 26 school construction debt under this chapter. The report must include an analysis of 27 funding sources and the short-term and long-term fiscal effects of the funding on the 28 state. Copies of the report shall be made available to the public and to the legislature. 29 * Sec. 8. This Act takes effect immediately under AS 01.10.070(c).