CSSB 7(FIN): "An Act relating to grants for school construction, to reimbursement of school construction debt, and to school construction bonds issued by the Alaska Municipal Bond Bank Authority; and providing for an effective date."
00CS FOR SENATE BILL NO. 7(FIN) 01 "An Act relating to grants for school construction, to reimbursement of school 02 construction debt, and to school construction bonds issued by the Alaska 03 Municipal Bond Bank Authority; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 14.11.013(b) is repealed and reenacted to read: 06 (b) The department shall recommend school construction grants in the order 07 of priority established by the grant review committee under AS 14.11.014. 08 * Sec. 2. AS 14.11.013(d) is amended to read: 09 (d) The department shall reduce a project budget by the cost of those portions 10 of a project design that the department determines (1) are for construction of student 11 residential space, planetariums, hockey rinks, saunas, and other facilities for single 12 purpose sporting or recreational uses that are not suitable for other activities; or (2) 13 do not meet the design guidelines specified under (f) or (g) of this section that are 14 applicable to the project. This subsection does not apply to funding for swimming
01 pools that meet criteria established by the department. 02 * Sec. 3. AS 14.11.013(e) is amended to read: 03 (e) By November 5, the department shall provide public notice of the grant 04 applications submitted under (a) of this section and the priorities established under 05 AS 14.11.014 [(b) OF THIS SECTION]. After public notice has been given, the 06 department shall, not later than December 1, hold a public hearing on the priorities 07 established under AS 14.11.014 [(b) OF THIS SECTION]. In this subsection, "public 08 notice" means notice published in a newspaper of general circulation and notice to 09 every person who has requested notice about the grant application program from the 10 department. 11 * Sec. 4. AS 14.11.013 is amended by adding new subsections to read: 12 (f) The department shall, in consultation with the Department of Transportation 13 and Public Facilities, develop standard regional design guidelines for the construction 14 of schools in the state. Standard regional school design guidelines shall be developed 15 for the arctic, interior, western, southcentral, and southeastern regions of the state. For 16 each school construction project for which a grant is requested under AS 14.11.011, 17 the department shall determine which standard regional school design guidelines are 18 applicable to that project. 19 (g) A prototypical design utilized by a district may be substituted for a 20 regional design required under (f) of this section if approved by the department. 21 * Sec. 5. AS 14.11 is amended by adding a new section to read: 22 Sec. 14.11.014. BOND REIMBURSEMENT AND GRANT REVIEW 23 COMMITTEE. (a) The commissioner shall establish a bond reimbursement and grant 24 review committee for the purpose of evaluating projects for which retirement of school 25 construction debt is requested, establishing the department's priorities among projects 26 for which school construction grants are requested, and preparing a construction grant 27 schedule. The committee shall consist of the commissioner or the commissioner's 28 designee and four other people selected by the commissioner who have the following 29 qualifications: 30 (1) one person shall be an engineer in private practice licensed under 31 AS 08.48;
01 (2) one person shall be an engineer licensed under AS 08.48 and 02 licensed as a construction contractor under AS 08.18; 03 (3) one person shall be an architect in private practice licensed under 04 AS 08.48; and 05 (4) one person shall have five years of experience in school or 06 municipal facilities management. 07 (b) In evaluating projects for bond reimbursement or establishing priorities 08 among grants as required under this section, the grant review committee shall evaluate 09 all of the following factors, without establishing an absolute priority for any one factor: 10 (1) emergency requirements; 11 (2) priorities assigned by the district to the projects requested; 12 (3) new local elementary and secondary facilities; 13 (4) existing regional, community, and school facilities, and their 14 condition; this paragraph does not include administrative facilities; 15 (5) the amount of district operating funds expended for maintenance; 16 and 17 (6) other program options for accomplishing the project's objectives. 18 (c) Members of the committee serve without compensation, but members who 19 are not representing the department or the Department of Transportation and Public 20 Facilities are entitled to per diem and travel expenses authorized for boards and 21 commissions under AS 39.20.180. 22 * Sec. 6. AS 14.11.100(a) is amended to read: 23 (a) During each fiscal year, the state shall allocate to a municipality that is a 24 school district, the following sums: 25 (1) payments made by the municipality during the fiscal year two years 26 earlier for the retirement of principal and interest on outstanding bonds, notes, or other 27 indebtedness incurred before July 1, 1977, to pay costs of school construction; 28 (2) 90 percent of 29 (A) payments made by the municipality during the fiscal year 30 two years earlier for the retirement of principal and interest on outstanding 31 bonds, notes, or other indebtedness incurred after June 30, 1977, and before
01 July 1, 1978, to pay costs of school construction; 02 (B) cash payments made after June 30, 1976, and before July 1, 03 1978, by the municipality during the fiscal year two years earlier to pay costs 04 of school construction; 05 (3) 90 percent of 06 (A) payments made by the municipality during the fiscal year 07 two years earlier for the retirement of principal and interest on outstanding 08 bonds, notes, or other indebtedness incurred after June 30, 1978, and before 09 January 1, 1982, to pay costs of school construction projects approved under 10 AS 14.07.020(a)(11); 11 (B) cash payments made after June 30, 1978, and before July 1, 12 1982, by the municipality during the fiscal year two years earlier to pay costs 13 of school construction projects approved under AS 14.07.020(a)(11); 14 (4) subject to (h) and (i) of this section, up to 90 percent of 15 (A) payments made by the municipality during the current fiscal 16 year for the retirement of principal and interest on outstanding bonds, notes, or 17 other indebtedness incurred after December 31, 1981, and authorized by the 18 qualified voters of the municipality before July 1, 1983, to pay costs of school 19 construction, additions to schools, and major rehabilitation projects that exceed 20 $25,000 and are approved under AS 14.07.020(a)(11); and 21 (B) cash payments made after June 30, 1982, and before July 1, 22 1983, by the municipality during the fiscal year two years earlier to pay costs 23 of school construction, additions to schools, and major rehabilitation projects 24 that exceed $25,000 and are approved under AS 14.07.020(a)(11); and 25 (C) payments made by the municipality during the current fiscal 26 year for the retirement of principal and interest on outstanding bonds, notes, or 27 other indebtedness to pay costs of school construction, additions to schools, and 28 major rehabilitation projects that exceed $25,000 and are submitted to the 29 department for approval under AS 14.07.020(a)(11) before July 1, 1983, and 30 approved by the qualified voters of the municipality before October 15, 1983, 31 not to exceed a total project cost of (i) $6,600,000 if the annual growth rate of
01 average daily membership of the municipality is more than 7 percent but less 02 than 12 percent, or (ii) $20,000,000 if the annual growth rate of average daily 03 membership of the municipality is 12 percent or more; payments made by a 04 municipality under this paragraph on total project costs that exceed the amounts 05 set out in (i) and (ii) of this paragraph are subject to (5)(A) of this subsection; 06 (5) subject to (h), (i), and (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 09 (i) outstanding bonds, notes, or other indebtedness 10 authorized by the qualified voters of the municipality after June 30, 11 1983, but before March 31, 1990, to pay costs of school construction, 12 additions to schools, and major rehabilitation projects that exceed 13 $25,000 and are approved under AS 14.07.020(a)(11); 14 (ii) outstanding bonds, notes, or other indebtedness 15 authorized by the qualified voters of the municipality before July 1, 16 1989, and reauthorized before November 1, 1989, to pay costs of school 17 construction, additions to schools, and major rehabilitation projects that 18 exceed $25,000 and are approved under AS 14.07.020(a)(11); and 19 (B) cash payments made after June 30, 1983, by the 20 municipality during the fiscal year two years earlier to pay costs of school 21 construction, additions to schools, and major rehabilitation projects that exceed 22 $25,000 and are approved by the department before July 1, 1990, under 23 AS 14.07.020(a)(11); 24 (6) subject to (h), (i), (j), and (n) of this section, 70 percent of 25 payments made by the municipality during the fiscal year for the retirement of 26 principal and interest on outstanding bonds, notes, or other indebtedness 27 authorized by the qualified voters of the municipality after April 1, 1993, but 28 before November 5, 1997, to pay costs of school construction, additions to schools, 29 and major rehabilitation projects that exceed $200,000 and are approved under 30 AS 14.07.020(a)(11); 31 (7) subject to (h), (i), (j), and (n) of this section, 70 percent of
01 payments made after July 1, 1994, by the municipality during the fiscal year for 02 the retirement of principal and interest on outstanding bonds, notes, or other 03 indebtedness authorized by the qualified voters of the municipality after 04 March 31, 1990, but before April 1, 1993, to pay costs of school construction, 05 additions to schools, and major rehabilitation projects. 06 * Sec. 7. AS 14.11.100(a)(6) is repealed and reenacted to read: 07 (6) subject to (h), (i), (j), and (n) of this section, 70 percent of 08 payments made by the municipality during the fiscal year for the retirement of 09 principal and interest on outstanding bonds, notes, or other indebtedness authorized by 10 the qualified voters of the municipality after April 1, 1993, but before November 8, 11 1994, to pay costs of school construction, additions to schools, and major rehabilitation 12 projects that exceed $200,000 and are approved under AS 14.07.020(a)(11); 13 * Sec. 8. 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), or (7) of this 16 section unless the municipality complies with the requirements of (1) - (4) of this 17 subsection, the project is approved by the commissioner before the local vote on the 18 bond issue for the project or for bonds authorized after March 31, 1990, but before 19 November 5, 1997, 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, the commissioner shall 22 require 23 (1) the municipality to include on the ballot for the bond issue, for 24 bonds authorized on or before March 31, 1990, the estimated total cost of each 25 project including estimated total interest, estimated annual operation and maintenance 26 costs, the estimated amounts that will be paid by the state and by the municipality, and 27 the approximate amount that would be due in annual taxes on $100,000 in assessed 28 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 approximate 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; or 07 (B) facilities that require repair or replacement in order to meet 08 health and safety laws or regulations or building codes. 09 * Sec. 9. AS 14.11.100 is amended by adding new subsections to read: 10 (n) The total amount of school construction projects approved for 11 reimbursement by the department under (a)(6) or (7) of this section may not exceed 12 $500,000,000. 13 (o) Subject to (h), (i), and (j) of this section, the state shall allocate to the 14 Alaska Municipal Bond Bank Authority 70 percent of payments made by the authority 15 during the fiscal year for retirement of principal and interest on outstanding bonds, 16 notes, or other indebtedness issued under AS 44.85.080 after April 1, 1993, but before 17 November 5, 1997, to pay costs of school construction, additions to schools, and major 18 rehabilitation projects that exceed $200,000 and are approved under AS 14.07.020(11). 19 * Sec. 10. AS 44.85.080 is amended by adding a new paragraph to read: 20 (23) receive appropriations from the legislature for retirement of 21 principal and interest on bonds, notes, or other indebtedness issued after April 1, 1993, 22 but before November 5, 1997, to pay costs of school construction, additions to schools, 23 and major rehabilitation projects that exceed $200,000 and are approved under 24 AS 14.07.020(a)(11). 25 * Sec. 11. AS 44.85.180(c) is amended to read: 26 (c) Notwithstanding the provisions of (a) and (b) of this section, the total 27 amount of bond bank authority bonds and notes outstanding at any one time, except 28 bonds or notes issued to fund or refund bonds or notes, may not exceed $800,000,000, 29 of which $500,000,000 may only be issued to fund school construction, additions 30 to schools, or major school rehabilitation projects that are approved under 31 AS 14.07.020(a)(11) [$300,000,000].
01 * Sec. 12. TRANSITION. Notwithstanding AS 14.11.013(f), enacted in sec. 4 of this Act, 02 the Department of Education is not required to determine applicable standard regional school 03 designs for grant projects unless the grant project is submitted to the Department of Education 04 under AS 14.11.011 after July 1, 1994. 05 * Sec. 13. APPLICABILITY. This Act does not apply to school construction projects that 06 are submitted to the Department of Education under AS 14.11.011(a) before the effective date 07 of this section. 08 * Sec. 14. Section 7 of this Act takes effect on the day that the lieutenant governor certifies 09 that a majority of the votes cast on the constitutional amendment described in sec. 15 of this 10 Act were opposed to the amendment. 11 * Sec. 15. AS 14.11.100(o), enacted in sec. 9 of this Act, and secs. 10 and 11 of this Act 12 take effect on the effective date of an amendment to the Constitution of the State of Alaska 13 that creates the Alaska school construction and maintenance fund and that is proposed by the 14 Eighteenth Alaska State Legislature. 15 * Sec. 16. Except as provided in secs. 14 and 15 of this Act, this Act takes effect 16 immediately under AS 01.10.070(c).