00 SENATE CS FOR HOUSE BILL NO. 451(RLS) 01 "An Act relating to construction, rehabilitation, and improvement of schools and 02 education-related facilities; relating to municipal bond reimbursement for school 03 construction; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 14.11.008(a) is amended to read: 06 (a) In order to receive a grant under this chapter or an appropriation under 07 AS 37.05.560, a district must 08 (1) be 09 (A) a rural educational attendance area; 10 (B) a municipal school district and, as of June 30 of the 11 previous fiscal year, have a population of less than 1,000; or 12 (C) a municipal school district that operates schools on a 13 military reservation; and 14 (2) provide a percentage share of the project cost, as determined under 01 (b) or (c) of this section. A district shall provide the required participating share 02 within three years after the date that the appropriation bill funding the grant is passed 03 by the legislature. 04 * Sec. 2. AS 14.11.008(a) is repealed and reenacted to read: 05 (a) In order to receive a grant under this chapter or an appropriation under 06 AS 37.05.560, a district must provide a percentage share of the project cost, as 07 determined under (b) or (c) of this section. A district shall provide the required 08 participating share within three years after the date that the appropriation bill funding 09 the grant is passed by the legislature. 10 * Sec. 3. AS 14.11.008 is amended by adding a new subsection to read: 11 (f) Grant funds provided to a municipal school district under (a)(1)(C) of this 12 section may only be used for the costs of school construction or major maintenance for 13 a school located on a military reservation. 14 * Sec. 4. AS 14.11.011(a) is amended to read: 15 (a) A municipality that is a school district or a regional educational attendance 16 area eligible under AS 14.11.008(a) may submit a request to the department for a 17 grant under this chapter. 18 * Sec. 5. AS 14.11.011(a) is repealed and reenacted to read: 19 (a) A municipality that is a school district or a regional educational attendance 20 area may submit a request to the department for a grant under this chapter. 21 * Sec. 6. AS 14.11.100(a) is amended to read: 22 (a) During each fiscal year, the state shall allocate to a municipality that is a 23 school district the following sums: 24 (1) payments made by the municipality during the fiscal year two years 25 earlier for the retirement of principal and interest on outstanding bonds, notes, or other 26 indebtedness incurred before July 1, 1977, to pay costs of school construction; 27 (2) 90 percent of 28 (A) payments made by the municipality during the fiscal year 29 two years earlier for the retirement of principal and interest on outstanding 30 bonds, notes, or other indebtedness incurred after June 30, 1977, and before 31 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 seven [7] percent but less than 12 percent, or (ii) $20,000,000 if the 02 annual growth rate of average daily membership of the municipality is 12 03 percent or more; payments made by a municipality under this subparagraph on 04 total project costs that exceed the amounts set out in (i) and (ii) of this 05 subparagraph are 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), (3), (5) [(j)(2) - (4)], and (n) of this section 04 and after projects funded by the bonds, notes, or other indebtedness have been 05 approved by the commissioner, 70 percent of payments made by the municipality 06 during the fiscal year for the retirement of principal and interest on outstanding bonds, 07 notes, or other indebtedness authorized by the qualified voters of the municipality on 08 or after July 1, 1995, but before July 1, 1998, to pay costs of school construction, 09 additions to schools, and major rehabilitation projects that exceed $200,000 and are 10 approved under AS 14.07.020(a)(11); 11 (9) subject to (h), (i), (j)(2), (3), (5) [(j)], and (n) of this section and 12 after projects funded by the bonds, notes, or other indebtedness have been approved by 13 the commissioner, 70 percent of payments made by the municipality during the fiscal 14 year 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, 2006 [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), (3), (5) [(j)(2) - (4)], and (o) of this 20 section, and after projects funded by the bonds, notes, or other indebtedness have been 21 approved by the commissioner, 70 percent of payments made by the municipality 22 during the fiscal year for the retirement of principal and interest on outstanding bonds, 23 notes, or other indebtedness authorized by the qualified voters of the municipality on 24 or after June 30, 1998, to pay costs of school construction, additions to schools, and 25 major rehabilitation projects that exceed $200,000, are approved under 26 AS 14.07.020(a)(11), and are not reimbursed under (n) of this section; 27 (11) subject to (h), (i), and (j)(2), (3), and (5) of this section, and 28 after projects funded by the 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 bonds, notes, or other indebtedness authorized by the qualified voters of the 01 municipality on or after June 30, 1999, but before July 1, 2008, to pay costs of 02 school construction, additions to schools, and major rehabilitation projects and 03 education related facilities that exceed $200,000, are approved under 04 AS 14.07.020(a)(11), and are not reimbursed under (n) or (o) of this section; 05 (12) subject to (h), (i), and (j)(2), (3), and (5) of this section, 60 percent of 06 payments made by a municipality during the fiscal year for the retirement of 07 principal and interest on outstanding bonds, notes, or other indebtedness 08 authorized by the qualified voters of the municipality on or after June 30, 1999, 09 but before July 1, 2008, to pay costs of school construction, additions to schools, 10 and major rehabilitation projects and education related facilities that exceed 11 $200,000, are approved under AS 14.07.020(a)(11), and are not reimbursed under 12 (n) or (o) of this section. 13 * Sec. 7. AS 14.11.100(j) is amended to read: 14 (j) Except as provided in (l) of this section, the state may not allocate money 15 to a municipality for a school construction project under (a)(5), (6), (7), or (9) of this 16 section unless the municipality complies with the requirements of (1) - (5) [(1) - (4)] 17 of this subsection, the project is approved by the commissioner before the local vote 18 on the bond issue for the project or for bonds authorized after March 31, 1990, but on 19 or before April 30, 1993, the bonds are approved by the commissioner before 20 reimbursement by the state, and the local vote occurs before July 1, 1987, or after 21 June 30, 1988. In approving a project under this subsection, and to the extent required 22 under (a)(8) or (10) of this section, the commissioner shall require 23 (1) the municipality to include on the ballot for the bond issue, for 24 bonds authorized on or before March 31, 1990, or after April 30, 1993, the estimated 25 total cost of each project including estimated total interest, estimated annual operation 26 and maintenance costs, the estimated amounts that will be paid by the state and by the 27 municipality, and the approximate amount that would be due in annual taxes on 28 $100,000 in assessed value to retire the debt; 29 (2) that the bonds may not be refunded unless the annual debt service 30 on the refunding issue is not greater than the annual debt service on the original issue; 31 (3) that the bonds must be repaid in approximately equal annual 01 principal payments or approximately equal debt service payments over a period of at 02 least 10 years; 03 (4) the municipality to demonstrate need for the project by establishing 04 that the school district has 05 (A) projected long-term student enrollment that indicates the 06 district has inadequate facilities to meet present or projected enrollment; 07 (B) facilities that require repair or replacement in order to meet 08 health and safety laws or regulations or building codes; 09 (C) demonstrated that the project will result in a reduction in 10 annual operating costs that economically justifies the cost of the project; or 11 (D) facilities that require modification or rehabilitation for the 12 purpose of improving the instructional program; 13 (5) evidence acceptable to the department that the district 14 (A) has a preventive maintenance plan that 15 (i) includes a computerized maintenance 16 management program, cardex system, or other formal systematic 17 means of tracking the timing and costs associated with planned and 18 completed maintenance activities, including scheduled preventive 19 maintenance; 20 (ii) addresses energy management for buildings 21 owned or operated by the district; 22 (iii) includes a regular custodial care program for 23 buildings owned or operated by the district; 24 (iv) includes preventive maintenance training for 25 facility managers and maintenance employees; and 26 (v) includes renewal and replacement schedules for 27 electrical, mechanical, structural, and other components of 28 facilities owned or operated by the district; and 29 (B) is adequately following the preventive maintenance 30 plan. 31 * Sec. 8. AS 14.11.100(n) is amended to read: 01 (n) The total amount of school construction projects approved for 02 reimbursement by the department under (a)(8) or (9) of this section 03 (1) may not exceed $357,143,000; and 04 (2) after June 30, 1995, and until July 1, 2006 [2003], shall be 05 allocated as follows: 06 (A) $154,286,000 shall be allocated to projects in a 07 municipality with a public school enrollment of 25,000 or more students in 08 fiscal year 1998, as determined under AS 14.17.160; 09 (B) $57,143,000 shall be allocated to projects in a municipality 10 with a public school enrollment of at least 15,000 but less than 25,000 students 11 in fiscal year 1998, as determined under AS 14.17.160; 12 (C) $145,714,000 shall be allocated to projects in a 13 municipality with a public school enrollment of less than 15,000 students in 14 fiscal year 1998, as determined under AS 14.17.160; allocations under this 15 subparagraph 16 (i) shall first be made to projects described under (a)(8) 17 of this section and then made to projects described under (a)(9) of this 18 section; and 19 (ii) may not exceed $16,000,000 to projects in a 20 municipality with a public school enrollment of less than 4,000 21 students in fiscal year 1998 as determined under AS 14.17.160. 22 * Sec. 9. AS 14.11.100(o) is amended to read: 23 (o) The total amount of school construction projects approved for 24 reimbursement by the department under (a)(10) of this section 25 (1) may not exceed $180,064,912; and 26 (2) after June 30, 1998, and until July 1, 2006 [2004], shall be 27 allocated as follows: 28 (A) $77,897,000 to projects in a municipality with a public 29 school enrollment of 25,000 or more students in fiscal year 2000, as 30 determined under AS 14.17.500; 31 (B) $14,571,000 to projects in a municipality with a public 01 school enrollment of at least 15,000 but less than 25,000 students in fiscal year 02 2000, as determined under AS 14.17.500; 03 (C) $14,143,000 to projects in a municipality with a public 04 school enrollment of at least 10,000 but less than 15,000 students in fiscal year 05 2000, as determined under AS 14.17.500; 06 (D) $7,429,000 to projects in a municipality with a public 07 school enrollment of at least 7,500 but less than 10,000 students in fiscal year 08 2000, as determined under AS 14.17.500; 09 (E) $20,712,912 to projects in a municipality with a public 10 school enrollment of at least 5,000 but less than 7,500 students in fiscal year 11 2000, as determined under AS 14.17.500; 12 (F) $2,660,000 to projects in a municipality with a public 13 school enrollment of at least 2,750 but less than 3,000 students in fiscal year 14 2000, as determined under AS 14.17.500; 15 (G) $454,000 to projects in a municipality with a public school 16 enrollment of at least 2,400 but less than 2,750 students in fiscal year 2000, as 17 determined under AS 14.17.500; 18 (H) $36,290,000 to projects in a municipality with a public 19 school enrollment of at least 2,050 but less than 2,400 students in fiscal year 20 2000, as determined under AS 14.17.500; 21 (I) $329,000 to projects in a municipality with a public school 22 enrollment of at least 1,700 but less than 1,750 students in fiscal year 2000, as 23 determined under AS 14.17.500; 24 (J) $286,000 to projects in a municipality with a public school 25 enrollment of at least 650 but less than 725 students in fiscal year 2000, as 26 determined under AS 14.17.500; 27 (K) $519,000 to projects in a municipality with a public school 28 enrollment of at least 500 but less than 525 students in fiscal year 2000, as 29 determined under AS 14.17.500; 30 (L) $2,224,000 to projects in a municipality with a public 31 school enrollment of at least 425 but less than 482 students in fiscal year 2000, 01 as determined under AS 14.17.500; 02 (M) $2,550,000 to projects in a municipality with a public 03 school enrollment of at least 290 but less than 305 students in fiscal year 2000, 04 as determined under AS 14.17.500. 05 * Sec. 10. AS 14.11.100(k) is repealed. 06 * Sec. 11. AS 14.11.008(f) is repealed July 1, 2008. 07 * Sec. 12. The uncodified law of the State of Alaska is amended by adding a new section to 08 read: 09 INTERVENING AMENDMENTS. It is the intent of the legislature that intervening 10 amendments affected by repeal and reenactment of law in this Act are not to be carried 11 forward once the repeal and reenactment of law in this Act takes effect. 12 * Sec. 13. The uncodified law of the State of Alaska is amended by adding a new section to 13 read: 14 REPORT TO THE LEGISLATURE. By February 1, 2008, the Department of 15 Education and Early Development shall provide to the governor and make available to the 16 public and the legislature a report on the effectiveness of the school construction grant and 17 school construction debt reimbursement program under AS 14.11. 18 * Sec. 14. The uncodified law of the State of Alaska is amended by adding a new section to 19 read: 20 CONTINGENT EFFECT OF CERTAIN SECTIONS. Sections 2, 5, 11, and 12 of 21 this Act take effect only if, under sec. 15 of this Act, secs. 1, 3, and 4 of this Act take effect. 22 * Sec. 15. Sections 1, 3, 4, 6 - 10, and 13 of this Act take effect on the date that the director 23 of elections certifies to the revisor of statutes that a majority of the qualified voters of the state 24 who vote on the question at the 2002 general election affirmatively voted to authorize the 25 contracting of state debt in the principal amount of at least $240,000,000 for the purpose of 26 financing capital improvements and major maintenance for schools in rural educational 27 attendance areas or municipal school districts. 28 * Sec. 16. If, under sec. 14 of this Act, secs. 2, 5, 11, and 12 of this Act take effect, they 29 take effect July 1, 2008. 30 * Sec. 17. Except as provided in secs. 15 and 16 of this Act, this Act takes effect 31 immediately under AS 01.10.070(c).