00 SENATE BILL NO. 2 01 "An Act relating to reimbursement of municipal bonds for school construction; and 02 providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. 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; 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 7 percent but less than 12 percent, or (ii) $20,000,000 if the annual growth 02 rate of average daily membership of the municipality is 12 percent or more; 03 payments made by a municipality under this subparagraph on total project 04 costs that exceed the amounts set out in (i) and (ii) of this subparagraph are 05 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) - (4), and (n) of this section and after 04 projects funded by the bonds, notes, or other indebtedness have been approved by the 05 commissioner, 70 percent of payments made by the municipality during the fiscal year 06 for the retirement of principal and interest on outstanding bonds, notes, or other 07 indebtedness authorized by the qualified voters of the municipality on or after July 1, 08 1995, but before July 1, 1998, to pay costs of school construction, additions to 09 schools, and major rehabilitation projects that exceed $200,000 and are approved 10 under AS 14.07.020(a)(11); 11 (9) subject to (h), (i), (j), and (n) of this section and after projects 12 funded by the bonds, notes, or other indebtedness have been approved by the 13 commissioner, 70 percent of payments made by the municipality during the fiscal year 14 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, 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) - (4) [(j)], and (p) of this section, and after 20 projects funded by the bonds, notes, or other indebtedness have been approved by the 21 commissioner, 70 percent of payments made by the municipality during the fiscal year 22 for the retirement of principal and interest on outstanding bonds, notes, or other 23 indebtedness authorized by the qualified voters of the municipality on or after June 30, 24 1998, to pay costs of school construction, additions to schools, and major 25 rehabilitation projects that exceed $200,000, are approved under AS 14.07.020(a)(11), 26 and are not reimbursed under (n) of this section. 27 * Sec. 2. AS 14.11.100(j) is amended to read: 28 (j) Except as provided in (l) of this section, the state may not allocate money 29 to a municipality for a school construction project under (a)(5), (6), (7), or (9) [, OR 30 (10)] of this section unless the municipality complies with the requirements of (1) - (4) 31 of this subsection, the project is approved by the commissioner before the local vote 01 on the bond issue for the project or for bonds authorized after March 31, 1990, but on 02 or before April 30, 1993, the bonds are approved by the commissioner before 03 reimbursement by the state, and the local vote occurs before July 1, 1987, or after 04 June 30, 1988. In approving a project under this subsection, and to the extent required 05 under (a)(8) or (10) of this section, the commissioner shall require 06 (1) the municipality to include on the ballot for the bond issue, for 07 bonds authorized on or before March 31, 1990, or after April 30, 1993, the estimated 08 total cost of each project including estimated total interest, estimated annual operation 09 and maintenance costs, the estimated amounts that will be paid by the state and by the 10 municipality, and the approximate amount that would be due in annual taxes on 11 $100,000 in assessed value to retire the debt; 12 (2) that the bonds may not be refunded unless the annual debt service 13 on the refunding issue is not greater than the annual debt service on the original issue; 14 (3) that the bonds must be repaid in approximately equal annual 15 principal payments or approximately equal debt service payments over a period of at 16 least 10 years; 17 (4) the municipality to demonstrate need for the project by establishing 18 that the school district has 19 (A) projected long-term student enrollment that indicates the 20 district has inadequate facilities to meet present or projected enrollment; 21 (B) facilities that require repair or replacement in order to meet 22 health and safety laws or regulations or building codes; 23 (C) demonstrated that the project will result in a reduction in 24 annual operating costs that economically justifies the cost of the project; or 25 (D) facilities that require modification or rehabilitation for the 26 purpose of improving the instructional program. 27 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 28 read: 29 RETROACTIVITY. This Act is retroactive to July 1, 2000. 30 * Sec. 4. This Act takes effect immediately under AS 01.10.070(c).