CSSB 11(HES): "An Act relating to state aid for school construction debt; and providing for an effective date."
00CS FOR SENATE BILL NO. 11(HES) 01 "An Act relating to state aid for 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 14.11.100(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 fiscal 15 year for the retirement of principal and interest on outstanding bonds, notes, or 16 other indebtedness incurred after December 31, 1981, and authorized by the 17 qualified voters of the municipality before July 1, 1983, to pay costs of school 18 construction, additions to schools, and major rehabilitation projects that exceed 19 $25,000 and are approved under AS 14.07.020(a)(11); [AND] 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 fiscal 25 year for the retirement of principal and interest on outstanding bonds, notes, or 26 other indebtedness to pay costs of school construction, additions to schools, and 27 major rehabilitation projects that exceed $25,000 and are submitted to the 28 department for approval under AS 14.07.020(a)(11) before July 1, 1983, and 29 approved by the qualified voters of the municipality before October 15, 1983, 30 not to exceed a total project cost of (i) $6,600,000 if the annual growth rate of 31 average daily membership of the municipality is more than 7 percent but less
01 than 12 percent, or (ii) $20,000,000 if the annual growth rate of average daily 02 membership of the municipality is 12 percent or more; payments made by a 03 municipality under this subparagraph [PARAGRAPH] on total project costs 04 that exceed the amounts set out in (i) and (ii) of this subparagraph 05 [PARAGRAPH] are subject to (5)(A) of this subsection; 06 (5) subject to (h) - (j) [(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 11 (i) after June 30, 1983, but before March 31, 1990, to 12 pay costs of school construction, additions to schools, and major 13 rehabilitation projects that exceed $25,000 and are approved under 14 AS 14.07.020(a)(11); or 15 (ii) [OUTSTANDING BONDS, NOTES, OR OTHER 16 INDEBTEDNESS AUTHORIZED BY THE QUALIFIED VOTERS OF 17 THE MUNICIPALITY] before July 1, 1989, and reauthorized before 18 November 1, 1989, to pay costs of school construction, additions to 19 schools, and major rehabilitation projects that exceed $25,000 and are 20 approved under AS 14.07.020(a)(11); and 21 (B) cash payments made after June 30, 1983, by the 22 municipality during the fiscal year two years earlier to pay costs of school 23 construction, additions to schools, and major rehabilitation projects that exceed 24 $25,000 and are approved by the department before July 1, 1990, under 25 AS 14.07.020(a)(11); 26 (6) subject to (h) - (j) [(h), (i), (j),] and (m) of this section, 70 percent 27 of payments made by the municipality during the fiscal year for the retirement of 28 principal and interest on outstanding bonds, notes, or other indebtedness authorized by 29 the qualified voters of the municipality on or after April 30, 1993, but before July 1, 30 1995, to pay costs of school construction, additions to schools, and major rehabilitation 31 projects that exceed $200,000 and are approved under AS 14.07.020(a)(11);
01 (7) subject to (h) - (j) [(h), (i), (j),] and (m) of this section, 70 percent 02 of payments made by the municipality during the fiscal year for the retirement of 03 principal and interest on outstanding bonds, notes, or other indebtedness authorized by 04 the qualified voters of the municipality after March 31, 1990, but before April 30, 05 1993, to pay costs of school construction, additions to schools, and major rehabilitation 06 projects; 07 (8) subject to (i) and (j) of this section, 70 percent of payments 08 made by the municipality during the fiscal year for the retirement of principal 09 and interest on outstanding bonds, notes, or other indebtedness authorized by the 10 qualified voters of the municipality on or after July 1, 1995, but before July 1, 11 1997, to pay costs of school construction, additions to schools, and major 12 rehabilitation projects; 13 (9) subject to (i) and (j) of this section, 75 percent of payments 14 made by the municipality during the fiscal year for the retirement of principal 15 and interest on outstanding bonds, notes, or other indebtedness authorized by the 16 qualified voters of the municipality on or after July 1, 1997, to pay costs of school 17 construction, additions to schools, and major rehabilitation projects. 18 * Sec. 2. AS 14.11.100(b) is amended to read: 19 (b) The commissioner shall administer the program of reimbursement 20 authorized under this section and shall provide by regulation for the filing of 21 applications for reimbursement, the form of proof of costs for which application for 22 reimbursement is made, and other regulations necessary to administer the program. 23 An amount due a municipality for reimbursement under this section may not be 24 reduced by the cost to the department to administer the reimbursement program. 25 The commissioner shall exclude from the total school construction cost of the local 26 district all state and federal funds included in these costs except funds provided under 27 this section and AS 43.50.140. In approving applications for reimbursement, the 28 commissioner shall offset against the amount of reimbursement authorized the amount 29 of any funds distributed to the borough or city in the second preceding fiscal year from 30 the school fund provided for in AS 43.50.140. 31 * Sec. 3. AS 14.11.100(h) is amended to read:
01 (h) An allocation under (a)(4) - (7) [(a)(4) OR (5)] of this section for school 02 construction begun after July 1, 1982, shall be reduced by the amount of money used 03 for the construction of residential space, hockey rinks, planetariums, saunas, and other 04 facilities for single purpose sporting or recreational uses that are not suitable for other 05 activities and by the money used for construction that exceeds the amount needed for 06 construction of a facility of efficient design as determined by the department. An 07 allocation under (a)(4) - (7) [(a)(4) OR (5)] of this section may not be reduced by the 08 amount of money used for construction of a small swimming pool, tank, or water 09 storage facility used for water sports. However, an allocation shall be reduced by the 10 difference between the amount of money used to construct a swimming pool that 11 exceeds the standards adopted by the department and the amount of money that would 12 have been used to construct a small swimming pool, tank, or water storage facility, as 13 determined by the commissioner. 14 * Sec. 4. AS 14.11.100(i) is amended to read: 15 (i) For the purposes of (a)(4) - (9) [(a)(4) AND (5)] of this section, 16 (1) an indebtedness for bonds is incurred after the bonds are sold; 17 (2) reimbursement for a cash payment may only be made after the 18 payment is made to a vendor; and 19 (3) payments may not be made for costs that are incurred under a 20 contract after the contract has been released. 21 * Sec. 5. AS 14.11.100(j) is amended to read: 22 (j) Except as provided in (l) of this section, the state may not allocate money 23 to a municipality for a school construction project under (a)(5) - (9) [(a)(5), (6), OR 24 (7)] of this section unless the municipality complies with the requirements of (1) - (4) 25 of this subsection, the project is approved by the commissioner before the local vote 26 on the bond issue for the project or for bonds authorized after March 31, 1990, but on 27 or before April 30, 1993, the bonds are approved by the commissioner before 28 reimbursement by the state, and the local vote occurs before July 1, 1987, or after 29 June 30, 1988. In approving a project under this subsection, the commissioner shall 30 require 31 (1) the municipality to include on the ballot for the bond issue, for
01 bonds authorized on or before March 31, 1990, or after April 30, 1993, the estimated 02 total cost of each project including estimated total interest, estimated annual operation 03 and maintenance costs, the estimated amounts that will be paid by the state and by the 04 municipality, and the approximate amount that would be due in annual taxes on 05 $100,000 in assessed value to retire the debt; 06 (2) that the bonds may not be refunded unless the annual debt service 07 on the refunding issue is not greater than the annual debt service on the original issue; 08 (3) that the bonds must be repaid in approximately equal annual 09 principal payments or approximately [APPROXIMATE] equal debt service payments 10 over a period of at least 10 years; 11 (4) the municipality to demonstrate need for the project by establishing 12 that the school district has 13 (A) projected long-term student enrollment that indicates the 14 district has inadequate facilities to meet present or projected enrollment; [OR] 15 (B) facilities that require repair or replacement in order to meet 16 health and safety laws or regulations or building codes; 17 (C) demonstrated that the project will result in a reduction 18 in annual operating costs that economically justifies the cost of the project; 19 or 20 (D) facilities that require modification or rehabilitation for 21 the purpose of improving the instructional program. 22 * Sec. 6. This Act is retroactive to July 1, 1995. 23 * Sec. 7. This Act takes effect immediately under AS 01.10.070(c).