00 SENATE CS FOR CS FOR HOUSE BILL NO. 261(EDC) 01 "An Act relating to education funding; providing for an effective date by amending the 02 effective date of secs. 10, 11, 13, and 15, ch. 5, SLA 2025; and providing for an effective 03 date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05  * Section 1. AS 14.03.410(e) is amended to read: 06 (e) A student in an early education program may not be counted in a district's 07 ADM under AS 14.17.600 [AS 14.17.500] unless the department has approved the 08 program. 09  * Sec. 2. AS 14.11.100(o) is amended to read: 10 (o) The total amount of school construction projects approved for 11 reimbursement by the department under (a)(10) of this section 12 (1) may not exceed $190,644,901; and 13 (2) after June 30, 1998, and until July 1, 2006, shall be allocated as 14 follows: 01 (A) $77,897,000 to projects in a municipality with a public 02 school enrollment of 25,000 or more students in fiscal year 2000, as 03 determined under former AS 14.17.500; 04 (B) $14,571,000 to projects in a municipality with a public 05 school enrollment of at least 15,000 but less than 25,000 students in fiscal year 06 2000, as determined under former AS 14.17.500; 07 (C) $14,143,000 to projects in a municipality with a public 08 school enrollment of at least 10,000 but less than 15,000 students in fiscal year 09 2000, as determined under former AS 14.17.500; 10 (D) $7,429,000 to projects in a municipality with a public 11 school enrollment of at least 7,500 but less than 10,000 students in fiscal year 12 2000, as determined under former AS 14.17.500; 13 (E) $20,712,912 to projects in a municipality with a public 14 school enrollment of at least 5,000 but less than 7,500 students in fiscal year 15 2000, as determined under former AS 14.17.500; 16 (F) $2,660,000 to projects in a municipality with a public 17 school enrollment of at least 2,750 but less than 3,000 students in fiscal year 18 2000, as determined under former AS 14.17.500; 19 (G) $454,000 to projects in a municipality with a public school 20 enrollment of at least 2,400 but less than 2,750 students in fiscal year 2000, as 21 determined under former AS 14.17.500; 22 (H) $46,869,989 to projects in a municipality with a public 23 school enrollment of at least 2,050 but less than 2,400 students in fiscal year 24 2000, as determined under former AS 14.17.500; 25 (I) $329,000 to projects in a municipality with a public school 26 enrollment of at least 1,700 but less than 1,750 students in fiscal year 2000, as 27 determined under former AS 14.17.500; 28 (J) $286,000 to projects in a municipality with a public school 29 enrollment of at least 650 but less than 725 students in fiscal year 2000, as 30 determined under former AS 14.17.500; 31 (K) $519,000 to projects in a municipality with a public school 01 enrollment of at least 500 but less than 525 students in fiscal year 2000, as 02 determined under former AS 14.17.500; 03 (L) $2,224,000 to projects in a municipality with a public 04 school enrollment of at least 425 but less than 482 students in fiscal year 2000, 05 as determined under former AS 14.17.500; 06 (M) $2,550,000 to projects in a municipality with a public 07 school enrollment of at least 290 but less than 305 students in fiscal year 2000, 08 as determined under former AS 14.17.500. 09  * Sec. 3. AS 14.11.100(p) is amended to read: 10 (p) The total amount of school construction projects approved for 11 reimbursement by the department under (a)(13) and (a)(14) of this section 12 (1) may not exceed $177,256,000; 13 (2) after June 30, 1999, and until October 31, 2006, shall be allocated 14 as follows: 15 (A) $61,925,000 to projects in a municipality with a public 16 school enrollment of 45,000 or more students in fiscal year 2005, as 17 determined under former AS 14.17.500; 18 (B) $40,570,000 to projects in a municipality with a public 19 school enrollment of at least 14,600 but less than 20,000 students in fiscal year 20 2005, as determined under former AS 14.17.500; 21 (C) $20,000,000 to projects in a municipality with a public 22 school enrollment of at least 10,000 but less than 14,600 students in fiscal year 23 2005, as determined under former AS 14.17.500; 24 (D) $2,588,000 to projects in a municipality with a public 25 school enrollment of at least 7,500 but less than 10,000 students in fiscal year 26 2005, as determined under former AS 14.17.500; 27 (E) $5,995,000 to projects in a municipality with a public 28 school enrollment of at least 4,000 but less than 6,000 students in fiscal year 29 2005, as determined under former AS 14.17.500; 30 (F) $1,237,000 to projects in a municipality with a public 31 school enrollment of at least 2,400 but less than 2,800 students in fiscal year 01 2005, as determined under former AS 14.17.500; 02 (G) $1,100,000 to projects in a municipality with a public 03 school enrollment of at least 2,200 but less than 2,400 students in fiscal year 04 2005, as determined under former AS 14.17.500; 05 (H) $7,164,000 to projects in a municipality with a public 06 school enrollment of at least 1,300 but less than 1,500 students in fiscal year 07 2005, as determined under former AS 14.17.500; 08 (I) $1,260,000 to projects in a municipality with a public 09 school enrollment of at least 740 but less than 757 students in fiscal year 2005, 10 as determined under former AS 14.17.500; 11 (J) $608,000 to projects in a municipality with a public school 12 enrollment of at least 650 but less than 700 students in fiscal year 2005, as 13 determined under former AS 14.17.500; 14 (K) $32,000,000 to projects in a municipality with a public 15 school enrollment of at least 500 but less than 600 students in fiscal year 2005, 16 as determined under former AS 14.17.500; 17 (L) $2,809,000 to projects in a municipality with a public 18 school enrollment of at least 370 but less than 390 students in fiscal year 2005, 19 as determined under former AS 14.17.500. 20  * Sec. 4. AS 14.11.100(q) is amended to read: 21 (q) The total amount of school construction projects approved for 22 reimbursement by the department under (a)(15) of this section 23 (1) may not exceed $14,644,000; 24 (2) after June 30, 1999, and until October 31, 2006, shall be allocated 25 as follows: 26 (A) $6,522,000 to projects in a municipality with a public 27 school enrollment of at least 1,925 but less than 2,025 students in fiscal year 28 2005, as determined under former AS 14.17.500; 29 (B) $8,122,000 to projects in a municipality with a public 30 school enrollment of at least 398 but less than 400 students in fiscal year 2005, 31 as determined under former AS 14.17.500. 01  * Sec. 5. AS 14.16.050(a) is amended to read: 02 (a) The following provisions apply with respect to the operation and 03 management of a state boarding school as if it were a school district: 04 (1) requirements relating to school district operations: 05 (A) AS 14.03.030 - 14.03.050 (defining the school term, day in 06 session, and school holidays); 07 (B) AS 14.03.083 - 14.03.140 (miscellaneous provisions 08 applicable to school district operations); 09 (C) regulations adopted by the board under authority of 10 AS 14.07.020(a) that are applicable to school districts and their schools, unless 11 the board specifically exempts state boarding schools from compliance with a 12 regulation; 13 (D) AS 14.12.150 (authorizing school districts to establish and 14 participate in the services of a regional resource center); 15 (E) AS 14.14.050 (imposing the requirement of an annual 16 audit); 17 (F) AS 14.14.110 (authorizing cooperation with other school 18 districts); 19 (G) AS 14.14.140(b) (establishing a prohibition on 20 employment of a relative of the chief school administrator); 21 (H) AS 14.18 (prohibiting discrimination based on sex in 22 public education); 23 (2) requirements relating to the public school funding program and the 24 receipt and expenditure of that funding: 25 (A) [AS 14.17.500 (RELATING TO STUDENT COUNT 26 ESTIMATES); (B)] AS 14.17.505 (relating to school operating fund balances); 27 (B) AS 14.17.505 - 14.17.910 [(C) AS 14.17.500 - 14.17.910] 28 (setting out the procedure for payment of public school funding and imposing 29 general requirements and limits on money paid); 30 (3) requirements relating to teacher employment and retirement: 31 (A) AS 14.14.105 and 14.14.107 (relating to sick leave); 01 (B) AS 14.20.095 - 14.20.215 (relating to the employment and 02 tenure of teachers); 03 (C) AS 14.20.280 - 14.20.350 (relating to sabbatical leave 04 provisions for teachers); 05 (D) AS 23.40.070 - 23.40.260 (authorizing collective 06 bargaining by certificated employees), except with regard to teachers who are 07 administrators and except that the board may delegate some or all of its 08 responsibilities under those statutes; 09 (E) AS 14.25 (provisions regarding the teachers' retirement 10 system); 11 (4) requirements relating to students and educational programs: 12 (A) AS 14.30.180 - 14.30.350 (relating to educational services 13 for children with disabilities); 14 (B) AS 14.30.360 - 14.30.370 (establishing health education 15 program standards); 16 (C) AS 14.30.400 - 14.30.410 (relating to bilingual and 17 bicultural education). 18  * Sec. 6. AS 14.17.410(b) is amended to read: 19 (b) Public school funding consists of state aid, a required local contribution, 20 and eligible federal impact aid determined as follows: 21 (1) state aid equals basic need minus a required local contribution and 22 90 percent of eligible federal impact aid for that fiscal year; basic need equals the sum 23 obtained under (D) of this paragraph, multiplied by the base student allocation set out 24 in AS 14.17.470; district adjusted ADM is calculated as follows: 25 (A) the ADM of each school in the district is calculated by 26 applying the school size factor to the student count as set out in AS 14.17.450; 27 for purposes of this subparagraph and except as provided in  28 AS 14.17.450(b), calculation of a school's student count under  29 AS 14.17.450 for a fiscal year is adjusted to the greater of 30 (i) the school's prior three-year average ADM  31 reported in the previous fiscal year under AS 14.17.600;  01 (ii) the school's ADM reported in the previous fiscal  02 year under AS 14.17.600; or  03 (iii) the school's ADM reported in the current fiscal  04 year under AS 14.17.600; 05 (B) the number obtained under (A) of this paragraph is 06 multiplied by the district cost factor described in AS 14.17.460; 07 (C) the ADMs of each school in a district, as adjusted 08 according to (A) and (B) of this paragraph, are added; the sum is then 09 multiplied by the special needs factor set out in AS 14.17.420(a)(1) and the 10 secondary school vocational and technical instruction funding factor set out in 11 AS 14.17.420(a)(3); 12 (D) the number obtained for intensive services under 13 AS 14.17.420(a)(2) and the number obtained for correspondence study under 14 AS 14.17.430 are added to the number obtained under (C) of this paragraph or 15 under (E) [(H)] and (F) [(I)] of this paragraph; 16 (E) [NOTWITHSTANDING (A) - (C) OF THIS 17 PARAGRAPH, IF A SCHOOL DISTRICT'S ADM ADJUSTED FOR 18 SCHOOL SIZE UNDER (A) OF THIS PARAGRAPH DECREASES BY 19 FIVE PERCENT OR MORE FROM ONE FISCAL YEAR TO THE NEXT 20 FISCAL YEAR, THE SCHOOL DISTRICT MAY USE THE LAST FISCAL 21 YEAR BEFORE THE DECREASE AS A BASE FISCAL YEAR TO 22 OFFSET THE DECREASE, ACCORDING TO THE FOLLOWING 23 METHOD: 24 (i) FOR THE FIRST FISCAL YEAR AFTER THE 25 BASE FISCAL YEAR DETERMINED UNDER THIS 26 SUBPARAGRAPH, THE SCHOOL DISTRICT'S ADM ADJUSTED 27 FOR SCHOOL SIZE DETERMINED UNDER (A) OF THIS 28 PARAGRAPH IS CALCULATED AS THE DISTRICT'S ADM 29 ADJUSTED FOR SCHOOL SIZE, PLUS 75 PERCENT OF THE 30 DIFFERENCE IN THE DISTRICT'S ADM ADJUSTED FOR 31 SCHOOL SIZE BETWEEN THE BASE FISCAL YEAR AND THE 01 FIRST FISCAL YEAR AFTER THE BASE FISCAL YEAR; 02 (ii) FOR THE SECOND FISCAL YEAR AFTER THE 03 BASE FISCAL YEAR DETERMINED UNDER THIS 04 SUBPARAGRAPH, THE SCHOOL DISTRICT'S ADM ADJUSTED 05 FOR SCHOOL SIZE DETERMINED UNDER (A) OF THIS 06 PARAGRAPH IS CALCULATED AS THE DISTRICT'S ADM 07 ADJUSTED FOR SCHOOL SIZE, PLUS 50 PERCENT OF THE 08 DIFFERENCE IN THE DISTRICT'S ADM ADJUSTED FOR 09 SCHOOL SIZE BETWEEN THE BASE FISCAL YEAR AND THE 10 SECOND FISCAL YEAR AFTER THE BASE FISCAL YEAR; 11 (iii) FOR THE THIRD FISCAL YEAR AFTER THE 12 BASE FISCAL YEAR DETERMINED UNDER THIS 13 SUBPARAGRAPH, THE SCHOOL DISTRICT'S ADM ADJUSTED 14 FOR SCHOOL SIZE DETERMINED UNDER (A) OF THIS 15 PARAGRAPH IS CALCULATED AS THE DISTRICT'S ADM 16 ADJUSTED FOR SCHOOL SIZE, PLUS 25 PERCENT OF THE 17 DIFFERENCE IN THE DISTRICT'S ADM ADJUSTED FOR 18 SCHOOL SIZE BETWEEN THE BASE FISCAL YEAR AND THE 19 THIRD FISCAL YEAR AFTER THE BASE FISCAL YEAR; 20 (F) THE METHOD ESTABLISHED IN (E) OF THIS 21 PARAGRAPH IS AVAILABLE TO A SCHOOL DISTRICT FOR THE 22 THREE FISCAL YEARS FOLLOWING THE BASE FISCAL YEAR 23 DETERMINED UNDER (E) OF THIS PARAGRAPH ONLY IF THE 24 DISTRICT'S ADM ADJUSTED FOR SCHOOL SIZE DETERMINED 25 UNDER (A) OF THIS PARAGRAPH FOR EACH FISCAL YEAR IS LESS 26 THAN THE DISTRICT'S ADM ADJUSTED FOR SCHOOL SIZE IN THE 27 BASE FISCAL YEAR; 28 (G) THE METHOD ESTABLISHED IN (E) OF THIS 29 PARAGRAPH DOES NOT APPLY TO A DECREASE IN THE DISTRICT'S 30 ADM ADJUSTED FOR SCHOOL SIZE RESULTING FROM A LOSS OF 31 ENROLLMENT THAT OCCURS AS A RESULT OF A BOUNDARY 01 CHANGE UNDER AS 29; 02 (H)] notwithstanding (A) - (C) of this paragraph, if one or more 03 schools close and consolidate with one or more other schools in the same 04 community and district and, as a result of the consolidation, basic need 05 generated by the district's ADM of the consolidated schools as adjusted under 06 (A) - (C) of this paragraph decreases, the district may use the last fiscal year 07 before the consolidation as the base fiscal year to offset that decrease for the 08 first four fiscal years following consolidation according to the following 09 method: 10 (i) for the first two fiscal years after the base fiscal year, 11 the district's ADM of the consolidated schools as adjusted under (A) - 12 (C) of this paragraph is calculated by dividing the sum of the district's 13 ADM of the consolidated schools as adjusted under (A) - (C) of this 14 paragraph for the base fiscal year by the sum of the district's ADM of 15 the consolidated schools for the base fiscal year without adjustment, 16 and subtracting the quotient obtained by dividing the district's ADM of 17 the consolidated schools for the current fiscal year as adjusted under 18 (A) - (C) of this paragraph by the sum of the district's ADM of the 19 consolidated schools for the current fiscal year without adjustment, 20 multiplying that number by the sum of the district's ADM of the 21 consolidated schools for the current fiscal year without adjustment, and 22 adding that number to the sum of the district's ADM of the consolidated 23 schools for the current fiscal year as adjusted under (A) - (C) of this 24 paragraph; 25 (ii) for the third fiscal year after the base fiscal year, the 26 district's ADM of the consolidated schools as adjusted under (A) - (C) 27 of this paragraph is calculated by dividing the sum of the district's 28 ADM of the consolidated schools as adjusted under (A) - (C) of this 29 paragraph for the base fiscal year by the sum of the district's ADM of 30 the consolidated schools for the base fiscal year without adjustment, 31 and subtracting the quotient obtained by dividing the sum of the 01 district's ADM of the consolidated schools for the current fiscal year as 02 adjusted under (A) - (C) of this paragraph by the sum of the district's 03 ADM of the consolidated schools for the current fiscal year, 04 multiplying that number by the sum of the district's ADM of the 05 consolidated schools for the current fiscal year without adjustment, 06 multiplying that number by 66 percent, and adding that number to the 07 sum of the district's ADM of the consolidated schools for the current 08 fiscal year as adjusted under (A) - (C) of this paragraph; 09 (iii) for the fourth fiscal year after the base fiscal year, 10 the district's ADM of the consolidated schools as adjusted under (A) - 11 (C) of this paragraph is calculated by dividing the sum of the district's 12 ADM of the consolidated schools as adjusted under (A) - (C) of this 13 paragraph for the base fiscal year by the sum of the district's ADM of 14 the consolidated schools for the base fiscal year without adjustment, 15 and subtracting the quotient obtained by dividing the sum of the 16 district's ADM of the consolidated schools for the current fiscal year as 17 adjusted under (A) - (C) of this paragraph by the sum of the district's 18 ADM of the consolidated schools for the current fiscal year, 19 multiplying that number by the sum of the district's ADM of the 20 consolidated schools for the current fiscal year without adjustment, 21 multiplying that number by 33 percent, and adding that number to the 22 sum of the district's ADM of the consolidated schools for the current 23 fiscal year as adjusted under (A) - (C) of this paragraph; 24 (iv) to calculate the district's basic need for each fiscal 25 year, the number obtained through the calculation in (i), (ii), or (iii) of 26 this subparagraph is added to the number obtained under (C) of this 27 paragraph for the remainder of the district; 28 (F) [(I)] if the basic need calculated under (E)(i) - (iii) [(H)(i) - 29 (iii)] of this paragraph for one of the first four fiscal years after consolidation is 30 less than the basic need calculated under (A) - (C) of this paragraph for that 31 fiscal year, the basic need may not be adjusted under (E) [(H)] of this 01 paragraph for that fiscal year; 02 (G) [(J)] a district may not offset a decrease under (E) [(H)] of 03 this paragraph if 04 [(i)] a new facility is constructed in the district for the 05 consolidation; 06 (H) [OR 07 (ii) THE DISTRICT OFFSET A DECREASE UNDER 08 (E) OF THIS PARAGRAPH IN THE SAME FISCAL YEAR; 09 (K)] a district that offsets a decrease under (E) [(H)] of this 10 paragraph may not reopen a school that was closed for consolidation in the 11 district until 12 (i) seven or more years have passed since the school 13 closure; and 14 (ii) the district provides evidence satisfactory to the 15 department that the schools affected by the consolidation are over 16 capacity; 17 (I) [(L)] a district may not reopen and reconsolidate a school 18 that was consolidated in the district more than once every seven years for 19 purposes of the calculations made under (E) [(H)] of this paragraph; 20 (J) [(M)] a district offsetting a decrease under (E) [(H)] of this 21 paragraph shall provide the department with the list of schools participating in 22 the consolidation and the corresponding ADM; 23 (2) the required local contribution of a city or borough school district is 24 the equivalent of a 2.65 mill tax levy on the full and true value of the taxable real and 25 personal property in the district as of January 1 of the second preceding fiscal year, as 26 determined by the Department of Commerce, Community, and Economic 27 Development under AS 14.17.510 and AS 29.45.110, not to exceed 45 percent of a 28 district's basic need for the preceding fiscal year as determined under (1) of this 29 subsection. 30  * Sec. 7. AS 14.17.420(a) is amended to read: 31 (a) As a component of public school funding, a district is eligible for special 01 needs and secondary school vocational and technical instruction funding and may be 02 eligible for intensive services funding as follows: 03 (1) special needs funding is available to a district to assist the district 04 in providing special education, gifted and talented education, vocational education, 05 and bilingual education services to its students; a special needs funding factor of 1.20 06 shall be applied as set out in AS 14.17.410(b)(1); 07 (2) in addition to the special needs funding for which a district is 08 eligible under (1) of this subsection, a district is eligible for intensive services funding 09 [FOR EACH SPECIAL EDUCATION STUDENT WHO NEEDS AND RECEIVES 10 INTENSIVE SERVICES AND IS ENROLLED ON THE LAST DAY OF THE 11 COUNT PERIOD; FOR EACH SUCH STUDENT, INTENSIVE SERVICES 12 FUNDING IS] equal to the intensive student count multiplied by 13; the intensive  13 student count equals the greater of the following:  14 (A) the number of special education students who needed  15 and received intensive services and were enrolled on the last day of the  16 count period conducted in the previous fiscal year under AS 14.17.600(a);  17 (B) the number of special education students who needed  18 and received intensive services and were enrolled on the last day of the  19 count period conducted in the current fiscal year under AS 14.17.600(a);  20 (C) the number of special education students who needed  21 and received intensive services and were enrolled on February 15 of the  22 current fiscal year, if a district chooses to conduct a second student count  23 for the current fiscal year under this subparagraph; 24 (3) in addition to the special needs and intensive services funding 25 available under (1) and (2) of this subsection, secondary school vocational and 26 technical instruction funding is available to assist districts in providing vocational and 27 technical instruction to students who are enrolled in a secondary school; a secondary 28 school vocational and technical instruction funding factor of 1.015 shall be applied as 29 set out in AS 14.17.410(b)(1); in this paragraph, "vocational and technical instruction" 30 excludes costs associated with 31 (A) administrative expenses; and 01 (B) instruction in general literacy, mathematics, and job 02 readiness skills. 03  * Sec. 8. AS 14.17.600(a) is amended to read: 04 (a) Within two weeks after the end of the 20-school-day period ending the 05 fourth Friday in October, each district shall transmit a report to the department that, 06 under regulations adopted by the department, reports the district's [ITS] ADM for 07 that count period, the prior three-year average ADM for each school in the  08 district, student count information the department determines is necessary to  09 calculate school ADMs under AS 14.17.450 and community and charter school  10 ADMs that relate to the district under AS 14.17.905, and other student count 11 information that [WILL AID] the department shall use to determine the amount of  12 the district's [IN MAKING A DETERMINATION OF ITS] state aid under the public 13 school funding program for the succeeding fiscal year. The district shall also  14 include in the district's report the number of special education students who  15 needed and received intensive services and are enrolled on the last day of the  16 count period, which the department shall use to determine the amount of the  17 district's intensive services funding under AS 14.17.420(a)(2)(A) for the  18 succeeding fiscal year and, if applicable, additional intensive services funding  19 under AS 14.17.420(a)(2)(B) for the current fiscal year. For centralized 20 correspondence study, the October report shall be based on the period from July 1 21 through the fourth Friday in October. The department may make necessary corrections 22 in the report submitted and shall notify the district of changes made. The 23 commissioner shall notify the governor of additional appropriations the commissioner 24 estimates to be necessary to fully finance the public school funding program for the 25 succeeding [CURRENT] fiscal year. 26  * Sec. 9. AS 14.17.600 is amended by adding new subsections to read: 27 (c) Part-time students shall be included in the student count data in accordance 28 with regulations adopted by the department. 29 (d) When reporting a district's ADM, a part-time student who is a 30 correspondence student may not be counted as more than one full-time equivalent 31 student. 01 (e) Except as provided in (f) of this section, a student in a district-wide early 02 education program provided by a district and approved by the department under 03 AS 14.07.020(a)(8) is counted as a full-time equivalent student. 04 (f) A district may not include in a school's ADM students who are four and 05 five years of age if the students are enrolled in an early education program that 06 receives state or federal funding other than funding under this chapter. 07 (g) For purposes of AS 14.09.010, a student in a district-wide early education 08 program provided by a district and approved by the department under 09 AS 14.07.020(a)(8) is counted as a full-time equivalent student. 10  * Sec. 10. AS 14.17.600(e), enacted by sec. 9 of this Act, is amended to read: 11 (e) A district may not include in the district's ADM [EXCEPT AS 12 PROVIDED IN (f) OF THIS SECTION,] a student in a district-wide early education 13 program provided by the [A] district [AND APPROVED BY THE DEPARTMENT 14 UNDER AS 14.07.020(a)(8) IS COUNTED AS A FULL-TIME EQUIVALENT 15 STUDENT]. 16  * Sec. 11. AS 14.17.610(a) is amended to read: 17 (a) Except as provided in (d) of this section, the [THE] department shall 18 determine the state aid for each school district for [IN] a fiscal year on the basis of the 19 district's student count data reported in the previous fiscal year under AS 14.17.600. 20 On or before the 15th day of each month [OF THE FIRST NINE MONTHS] of each 21 fiscal year, one-twelfth of each district's state aid shall be distributed on the basis of 22 the data reported under AS 14.17.600 [FOR THE PRECEDING FISCAL YEAR. ON 23 OR BEFORE THE 15TH DAY OF EACH OF THE LAST THREE MONTHS OF 24 EACH FISCAL YEAR, ONE-THIRD OF THE BALANCE OF EACH DISTRICT'S 25 STATE AID SHALL BE DISTRIBUTED, AFTER THE BALANCE HAS BEEN 26 RECOMPUTED ON THE BASIS OF STUDENT COUNT AND OTHER DATA 27 REPORTED FOR THE CURRENT FISCAL YEAR]. 28  * Sec. 12. AS 14.17.610 is amended by adding new subsections to read: 29 (d) If a district is entitled to additional funding because of an increase in a 30 school's student count under AS 14.17.410(b)(1)(A)(iii) or an increase in a district's 31 intensive student count under AS 14.17.420(a)(2)(B) or (C), the department shall 01 (1) distribute to the district the additional funding necessary to fully 02 fund the previous months of the fiscal year on the basis of the new student count on or 03 before the 15th day of the month following the student count; 04 (2) distribute the district's state aid for the remaining months of the 05 fiscal year on the basis of the new student count. 06 (e) The department may not reduce the amount of a district's state aid for a 07 fiscal year on the basis that the department distributed additional funding to another 08 district for the fiscal year under (d) of this section. 09  * Sec. 13. AS 14.17.905(a) is amended to read: 10 (a) For purposes of this chapter, the determination of the number of schools in 11 a district is subject to the following: 12 (1) a community with an ADM of at least 10, but not more than 100, 13 shall be counted as one school; 14 (2) a community with an ADM of at least 101, but not more than 425, 15 shall be counted as 16 (A) one elementary school, which includes those students in 17 grades kindergarten through six and, except as provided in AS 14.17.600 18 [AS 14.17.500], in an early education program provided by a school district 19 and approved by the department under AS 14.07.020(a)(8); and 20 (B) one secondary school, which includes students in grades 21 seven through 12; 22 (3) in a community with an ADM of greater than 425, each facility that 23 is administered as a separate school shall be counted as one school [, EXCEPT THAT 24 EACH ALTERNATIVE SCHOOL WITH AN ADM OF LESS THAN 175 SHALL 25 BE COUNTED AS A PART OF THE SCHOOL IN THE DISTRICT WITH THE 26 HIGHEST ADM]. 27  * Sec. 14. AS 14.17.905 is amended by adding a new subsection to read: 28 (d) For purposes of determining a community's ADM for a fiscal year under 29 (a) and (c) of this section, or a charter school's ADM for a fiscal year under (b) of this 30 section, the ADM is the greater of 31 (1) the community's or charter school's prior three-year average ADM 01 reported in the previous fiscal year under AS 14.17.600; 02 (2) the community's or charter school's ADM reported in the previous 03 fiscal year under AS 14.17.600; or 04 (3) the community's or charter school's ADM reported in the current 05 fiscal year under AS 14.17.600. 06  * Sec. 15. AS 14.17.990 is amended by adding a new paragraph to read: 07 (8) "prior three-year average ADM" means the number resulting from 08 combining the ADM counts from the three student count periods immediately 09 preceding a student count period conducted under AS 14.17.600(a) for a fiscal year 10 and dividing that sum by three. 11  * Sec. 16. Section 47, ch. 40, SLA 2022, is amended to read: 12 Sec. 47. AS 14.03.120(h), 14.03.410, 14.03.420; [AS 14.17.500(e), 13 14.17.500(f), 14.17.500(g);] AS 14.20.020(l); AS 14.30.760, 14.30.765, 14.30.770, 14 14.30.775, 14.30.780, and 14.30.800 are repealed. 15  * Sec. 17. AS 14.17.500 is repealed. 16  * Sec. 18. AS 14.17.600(f) and 14.17.600(g) are repealed. 17  * Sec. 19. Section 19, ch. 5, SLA 2025, is repealed. 18  * Sec. 20. The uncodified law of the State of Alaska is amended by adding a new section to 19 read: 20 TRANSITION: HOLD HARMLESS. Notwithstanding the repeal of 21 AS 14.17.410(b)(1)(E) - (G) by sec. 6 of this Act, a school district that meets the requirements 22 on July 1, 2026, to employ the method for calculating the school district's ADM adjusted for 23 school size as provided under AS 14.17.410(b)(1)(E) - (G), as those subparagraphs read on 24 the day before the effective date of sec. 6 of this Act, may continue to calculate the school 25 district's ADM adjusted for school size according to AS 14.17.410(b)(1)(E) - (G), as those 26 subparagraphs read on the day before the effective date of sec. 6 of this Act, until the school 27 district is no longer eligible to calculate the school district's ADM adjusted for school size 28 under AS 14.17.410(b)(1)(E) - (G), as those subparagraphs read on the day before the 29 effective date of sec. 6 of this Act. In this section, "ADM" has the meaning given in 30 AS 14.17.990. 31  * Sec. 21. The uncodified law of the State of Alaska is amended by adding a new section to 01 read: 02 TRANSITION: ADM CALCULATION. (a) Notwithstanding AS 14.17.420(a)(2)(A), 03 as amended by sec. 7 of this Act, for the fiscal year ending June 30, 2027, if student count 04 data is unavailable to calculate the number of special education students who needed and 05 received intensive services and were enrolled on the last day of the count period conducted 06 under AS 14.17.600(a), a district shall use student count data that is applicable to the fiscal 07 year ending June 30, 2026, obtained under AS 14.17.420(a), as that section read on the day 08 before the effective date of sec. 7 of this Act. 09 (b) Notwithstanding AS 14.17.600(a), as amended by sec. 8 of this Act, 10 AS 14.17.905(d), added by sec. 14 of this Act, and AS 14.17.990(8), added by sec. 15 of this 11 Act, for the fiscal years ending June 30, 2027, June 30, 2028, and June 30, 2029, if student 12 count data is unavailable to calculate a school's prior three-year average ADM under 13 AS 14.17.600(a), as amended by sec. 8 of this Act, or a community's or charter school's prior 14 three-year average ADM under AS 14.17.905(d), added by sec. 14 of this Act, a school, 15 community, or charter school, as applicable, shall, for each year of the prior three-year 16 average ADM for which data is unavailable, use student count data that is applicable to that 17 year obtained under AS 14.17.600, as that section read on the day before the effective date of 18 sec. 8 of this Act. In this subsection, "ADM" has the meaning given in AS 14.17.990. 19  * Sec. 22. Section 20, ch. 5, SLA 2025, is amended to read: 20 Sec. 20. Sections [IF SECS.] 10, 11, 13, and 15, ch. 5, SLA 2025, [OF THIS 21 ACT] take effect July 1, 2026 [, THEY TAKE EFFECT 181 DAYS AFTER THE 22 EFFECTIVE DATE OF THE SECTION OF SB 113 OR A SUBSTANTIALLY 23 SIMILAR BILL THAT EFFECTUATES THE SALES FACTOR, AS 24 DETERMINED UNDER AS 43.19 (MULTISTATE TAX COMPACT), AS THE 25 APPORTIONMENT FACTOR FOR HIGHLY DIGITIZED BUSINESSES]. 26  * Sec. 23. Sections 10 and 18 of this Act take effect on the effective date of sec. 47, ch. 40, 27 SLA 2022. 28  * Sec. 24. Except as provided in sec. 23 of this Act, this Act takes effect July 1, 2026.