HB 433: "An Act relating to state reimbursement for municipal school construction bonds; and providing for an effective date."
00HOUSE BILL NO. 433 01 "An Act relating to state reimbursement for municipal school construction bonds; 02 and 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 02 1, 1978, by the municipality during the fiscal year two years earlier to pay 03 costs 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); 20 (B) cash payments made after June 30, 1982, and before July 21 1, 1983, by the municipality during the fiscal year two years earlier to pay 22 costs of school construction, additions to schools, and major rehabilitation 23 projects 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 seven [7] percent
01 but less than 12 percent, or (ii) $20,000,000 if the annual growth rate of 02 average daily membership of the municipality is 12 percent or more; payments 03 made by a municipality under this subparagraph on total project costs that 04 exceed the amounts set out in (i) and (ii) of this subparagraph are subject to 05 (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 other 09 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 that 28 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 schools, 09 and major rehabilitation projects that exceed $200,000 and are approved under 10 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, to pay costs of school construction, additions to schools, and major rehabilitation 17 projects that exceed $200,000 and are approved under AS 14.07.020(a)(11) ; 18 (10) subject to (h), (i), and (j) of this section and after projects 19 funded by the bonds, notes, or other indebtedness have been approved by the 20 commissioner, 50 percent of payments made by the municipality during the fiscal 21 year for the retirement of principal and interest on outstanding bonds, notes, or 22 other indebtedness authorized by the qualified voters of the municipality on or 23 after July 1, 1999, to pay costs of school construction, additions to schools, and 24 major rehabilitation projects that exceed $200,000, are approved under 25 AS 14.07.020(a)(11), and are not reimbursed under (9) of this subsection . 26 * Sec. 2. AS 14.11.100(h) is amended to read: 27 (h) An allocation under (a)(4), (5), (6), (7), (8), [OR] (9) , or (10) of this 28 section for school construction begun after July 1, 1982, shall be reduced by the 29 amount of money used for the construction of residential space, hockey rinks, 30 planetariums, saunas, and other facilities for single purpose sporting or recreational 31 uses that are not suitable for other activities and by the money used for construction
01 that exceeds the amount needed for construction of a facility of efficient design as 02 determined by the department. An allocation under (a)(4), (5), (6), (7), (8), [OR] (9) , 03 or (10) of this section may not be reduced by the amount of money used for 04 construction of a small swimming pool, tank, or water storage facility used for water 05 sports. However, an allocation shall be reduced by the difference between the amount 06 of money used to construct a swimming pool that exceeds the standards adopted by 07 the department and the amount of money that would have been used to construct a 08 small swimming pool, tank, or water storage facility, as determined by the 09 commissioner. 10 * Sec. 3. AS 14.11.100(i) is amended to read: 11 (i) For the purposes of (a)(4) - (10) [(a)(4) - (9)] of this section, 12 (1) an indebtedness for bonds is incurred after the bonds are sold; 13 (2) reimbursement for a cash payment may only be made after the 14 payment is made to a vendor; and 15 (3) payments may not be made for costs that are incurred under a 16 contract after the contract has been released. 17 * Sec. 4. AS 14.11.100(j) is amended to read: 18 (j) Except as provided in (l) of this section, the state may not allocate money 19 to a municipality for a school construction project under (a)(5), (6), (7), [OR] (9) , or 20 (10) of this section unless the municipality complies with the requirements of (1) - (4) 21 of this subsection, the project is approved by the commissioner before the local vote 22 on the bond issue for the project or for bonds authorized after March 31, 1990, but on 23 or before April 30, 1993, the bonds are approved by the commissioner before 24 reimbursement by the state, and the local vote occurs before July 1, 1987, or after 25 June 30, 1988. In approving a project under this subsection, and to the extent required 26 under (a)(8) of this section, the commissioner shall require 27 (1) the municipality to include on the ballot for the bond issue, for 28 bonds authorized on or before March 31, 1990, or after April 30, 1993, the estimated 29 total cost of each project including estimated total interest, estimated annual operation 30 and maintenance costs, the estimated amounts that will be paid by the state and by the 31 municipality, and the approximate amount that would be due in annual taxes on
01 $100,000 in assessed value to retire the debt; 02 (2) that the bonds may not be refunded unless the annual debt service 03 on the refunding issue is not greater than the annual debt service on the original issue; 04 (3) that the bonds must be repaid in approximately equal annual 05 principal payments or approximately equal debt service payments over a period of at 06 least 10 years; 07 (4) the municipality to demonstrate need for the project by establishing 08 that the school district has 09 (A) projected long-term student enrollment that indicates the 10 district has inadequate facilities to meet present or projected enrollment; 11 (B) facilities that require repair or replacement in order to meet 12 health and safety laws or regulations or building codes; 13 (C) demonstrated that the project will result in a reduction in 14 annual operating costs that economically justifies the cost of the project; or 15 (D) facilities that require modification or rehabilitation for the 16 purpose of improving the instructional program. 17 * Sec. 5. This Act takes effect July 1, 2000.