00CS FOR SENATE BILL NO. 117(HES)                                                                                       
01 "An Act relating to property insurance required for regional educational                                                
02 attendance areas."                                                                                                      
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                               
04    * Section 1.  AS 14.03.150(a) is amended to read:                                                                  
05  (a)  Each school district shall purchase and maintain or provide proof of                                             
06 adequate property insurance for the replacement cost of all school facilities and                                       
07 equipment.   A school district that is a regional educational attendance area is not                                   
08 required to purchase and maintain or provide proof of coverage for losses due to                                        
09 (1) floods, except that the regional educational attendance area shall purchase and                                     
10 maintain or provide coverage for the school facilities that are located on a flood                                      
11 plain or flood prone area; or (2) earthquakes, except that the regional educational                                     
12 attendance area shall purchase and maintain or provide coverage for school                                              
13 facilities determined by the commissioner to be in an area where ground motion                                          
14 exceeds 0.2 second spectral acceleration of 75 percent gravity as delineated on the                                     

01 ground motion map for this state based on the United States Geological Survey                                           
02 investigation series maps I-2679.   Insurance purchased to comply with this section                                    
03 may contain a deductible amount, if approved by the department.  A school district                                      
04 may comply with this section by initiating and maintaining a program of self-                                           
05 insurance, if the department annually determines that the school district has submitted                                 
06 adequate evidence of the district's ability to self-insure for the replacement cost of all school                       
07 facilities and equipment.  A copy of the insurance policy or other information indicating                               
08 compliance with this section shall be provided to the department.   In this subsection, "flood                         
09 plain or flood prone area" means a land area susceptible to being inundated by water                                    
10 from any source.