CSSB 64(EDC): "An Act relating to state aid for costs of school construction debt; and providing for an effective date."
00 CS FOR SENATE BILL NO. 64(EDC) 01 "An Act relating to state aid for costs of school construction debt; and providing for an 02 effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 14.11.014(a) is amended to read: 05 (a) The commissioner shall establish a [BOND REIMBURSEMENT AND] 06 grant review committee for the purpose described in (b) of this section. In making 07 selections to the committee, the commissioner shall seek to maintain a regional 08 statewide balance on the committee. The committee shall consist of the commissioner 09 or the commissioner's designee, two members of the legislature selected by the 10 presiding officers of the house and senate, and six other people selected by the 11 commissioner as follows: 12 (1) two persons shall have professional degrees and experience in 13 school construction; 14 (2) two persons shall have experience in urban or rural school facilities
01 management; 02 (3) two persons shall represent the public. 03 * Sec. 2. AS 14.11.014(b) is amended to read: 04 (b) The committee shall 05 (1) review the department's priorities among projects for which school 06 construction grants are requested; 07 (2) make recommendations to the board concerning school 08 construction grants [AND MAKE RECOMMENDATIONS TO THE 09 COMMISSIONER CONCERNING PROJECTS FOR WHICH BOND 10 REIMBURSEMENT IS REQUESTED]; 11 (3) develop criteria for construction of schools in the state; criteria 12 developed under this paragraph must include requirements intended to achieve cost- 13 effective school construction, including consideration of multipurpose function 14 and designs to reduce overall facility costs for the affected community; 15 (4) analyze existing prototypical designs for school construction 16 projects; 17 (5) establish a form for grant applications; 18 (6) establish a method of ranking grant projects; 19 (7) recommend to the board necessary changes to the approval process 20 for school construction grants [AND FOR PROJECTS FOR WHICH BOND 21 REIMBURSEMENT IS REQUESTED]; 22 (8) set standards for energy efficiency for school construction and 23 major maintenance to provide energy efficiency benefits for all school locations in the 24 state and that address energy efficiency in design and energy systems that minimize 25 long-term energy and operating costs. 26 * Sec. 3. AS 14.11.025(b) is amended to read: 27 (b) The amount of money available each fiscal year for expenditure under (a) 28 of this section shall be the annual debt service on the projected liability for debt 29 incurred and funded for reimbursement before July 1, 2019, under AS 14.11.100(a) 30 divided by the percentage of all schools that are located in a city or borough school 31 district that is not a small municipal school district, the quotient of which is to be
01 multiplied by .244. 02 * Sec. 4. AS 14.11.100(s) is amended to read: 03 (s) Notwithstanding any other provision of law, the commissioner may not 04 approve an application for bond debt reimbursement made by a municipality for 05 school construction or major maintenance for indebtedness authorized by the qualified 06 voters of the municipality on or after January 1, 2015 [, BUT BEFORE JULY 1, 07 2020]. 08 * Sec. 5. AS 14.11.102(c) is amended to read: 09 (c) The commissioner may not allocate funds to a municipality under 10 AS 14.11.100 for the retirement of the principal of and interest on outstanding tax- 11 exempt bonds, notes, or other indebtedness authorized by the qualified voters of the 12 municipality on or after January 1, 2015 [, BUT BEFORE JULY 1, 2020]. 13 * Sec. 6. AS 29.45.020(a) is amended to read: 14 (a) If a municipality levies and collects property taxes, the governing body 15 shall provide the following notice: 16 "NOTICE TO TAXPAYER 17 For the current fiscal year the (city)(borough) has been allocated the 18 following amount of state aid for school and municipal purposes under 19 the applicable financial assistance Acts: 20 PUBLIC SCHOOL FUNDING PROGRAM (AS 14.17) $ 21 [STATE AID FOR RETIREMENT OF SCHOOL CON- $ 22 STRUCTION DEBT (AS 14.11.100)] 23 COMMUNITY ASSISTANCE $ 24 PROGRAM (AS 29.60.850 - 29.60.879) 25 TOTAL AID $ 26 The millage equivalent of this state aid, based on the dollar value of a 27 mill in the municipality during the current assessment year and for the 28 preceding assessment year, is: 29 MILLAGE EQUIVALENT 30 PREVIOUS YEAR THIS YEAR 31 PUBLIC SCHOOL FUNDING . . . .MILLS . . . .MILLS
01 PROGRAM ASSISTANCE 02 [STATE AID FOR RETIREMENT . . . .MILLS . . . .MILLS 03 OF SCHOOL CONSTRUCTION 04 DEBT] 05 COMMUNITY ASSISTANCE . . . .MILLS . . . .MILLS 06 PROGRAM 07 TOTAL MILLAGE EQUIVALENT . . . .MILLS . . . .MILLS" 08 Notice shall be provided by 09 (1) furnishing a copy of the notice with tax statements mailed for the 10 fiscal year for which aid is received; or 11 (2) publishing in a newspaper of general circulation in the municipality 12 a copy of the notice once each week for a period of three successive weeks, with 13 publication to occur not later than 45 days after the final adoption of the municipality's 14 budget. 15 * Sec. 7. AS 37.06.030(a) is amended to read: 16 (a) For each draw made by a municipality under AS 37.06.010, the 17 municipality shall contribute a local share to the cost of the capital project for which 18 the draw is made. The amount of the local share equals the local share percentage as 19 calculated under (1) of this subsection, divided by the state share percentage as 20 calculated under (2) of this subsection, multiplied by the amount of the draw. For 21 purposes of this subsection, 22 (1) the local share percentage is 23 (A) 30 percent for a municipality with a population of 5,000 or 24 more; 25 (B) for a municipality with a population of 1,000 - 4,999, the 26 greater of 27 (i) 15 percent; or 28 (ii) the percentage obtained by dividing the amount that 29 would be received by the municipality from a property tax levy of 30 1/1000th of a mill for each $1,000 of grant funds received by the sum 31 of that first amount plus the amount of the grant or draw, but not more
01 than 30 percent; 02 (C) for a municipality with a population of under 1,000, the 03 greater of 04 (i) five percent; or 05 (ii) the percentage obtained by dividing the amount that 06 would be received by the municipality from a property tax levy of 07 1/1000th of a mill for each $1,000 of grant funds received by the sum 08 of that first amount plus the amount of the grant or draw, but not more 09 than 30 percent; 10 (2) the state share percentage equals one minus the local share 11 percentage; 12 (3) the local share to be contributed by a municipality may be satisfied 13 with (A) federal, municipal, or local money; (B) labor, materials, or equipment used 14 directly in the construction of the project, or land, including land transferred by the 15 state to the municipality; the department shall determine the value of a contribution 16 under this subparagraph; (C) money from another nonstate source; (D) money 17 received by the municipality under AS 29.60.850 - 29.60.879; (E) state taxes refunded 18 or reimbursed to the municipality whose use for the purposes of this subsection is not 19 prohibited; and (F) [ALLOCATIONS OF STATE AID FOR THE COSTS OF 20 SCHOOL CONSTRUCTION DEBT UNDER AS 14.11.100; AND (G)] money 21 obtained from the sale or lease of land or other assets transferred by the state to the 22 municipality; except as provided in this paragraph, the local share may not be satisfied 23 with money from, or with the portion of an asset that was obtained with money from, 24 an appropriation, allocation, entitlement, grant, or other payment from the state. 25 * Sec. 8. AS 14.11.014(d), 14.11.100(a)(19), AND 14.11.100(a)(20) are repealed. 26 * Sec. 9. Section 6, ch. 3, SLA 2015, is repealed. 27 * Sec. 10. The uncodified law of the State of Alaska is amended by adding a new section to 28 read: 29 APPLICABILITY. This Act applies to bond debt reimbursement for school construction and 30 major maintenance incurred by a municipality on or after the effective date of this Act. 31 * Sec. 11. The uncodified law of the State of Alaska is amended by adding a new section to
01 read: 02 REVISOR'S INSTRUCTION. The revisor of statutes is requested to change the catch 03 line of AS 14.11.014 from "Bond reimbursement and grant review committee" to "Grant 04 review committee." 05 * Sec. 12. This Act takes effect July 1, 2019.