SB 2005: "An Act relating to municipal bond reimbursement for school construction; and providing for an effective date."
00 SENATE BILL NO. 2005 01 "An Act relating to municipal bond reimbursement for school construction; and 02 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)(8) is amended to read: 05 (8) subject to (h), (i), (j)(2) - (5) [(j)(2) - (4)], and (n) of this section 06 and after projects funded by the bonds, notes, or other indebtedness have been 07 approved by the commissioner, 70 percent of payments made by the municipality 08 during the fiscal year for the retirement of principal and interest on outstanding bonds, 09 notes, or other indebtedness authorized by the qualified voters of the municipality on 10 or after July 1, 1995, but before July 1, 1998, to pay costs of school construction, 11 additions to schools, and major rehabilitation projects that exceed $200,000 and are 12 approved under AS 14.07.020(a)(11); 13 * Sec. 2. AS 14.11.100(a)(10) is amended to read: 14 (10) subject to (h), (i), (j)(2) - (5) [(j)(2) - (4)], and (o) of this section,
01 and after projects funded by the bonds, notes, or other indebtedness have been 02 approved by the commissioner, 70 percent of payments made by the municipality 03 during the fiscal year for the retirement of principal and interest on outstanding bonds, 04 notes, or other indebtedness authorized by the qualified voters of the municipality on 05 or after June 30, 1998, to pay costs of school construction, additions to schools, and 06 major rehabilitation projects that exceed $200,000, are approved under 07 AS 14.07.020(a)(11), and are not reimbursed under (n) of this section. 08 * Sec. 3. AS 14.11.100(j) is amended to read: 09 (j) Except as provided in (l) of this section, the state may not allocate money 10 to a municipality for a school construction project under (a)(5), (6), (7), or (9) of this 11 section unless the municipality complies with the requirements of (1) - (5) [(1) - (4)] 12 of this subsection, the project is approved by the commissioner before the local vote 13 on the bond issue for the project or for bonds authorized after March 31, 1990, but on 14 or before April 30, 1993, the bonds are approved by the commissioner before 15 reimbursement by the state, and the local vote occurs before July 1, 1987, or after 16 June 30, 1988. In approving a project under this subsection, and to the extent required 17 under (a)(8) or (10) of this section, the commissioner shall require 18 (1) the municipality to include on the ballot for the bond issue, for 19 bonds authorized on or before March 31, 1990, or after April 30, 1993, the estimated 20 total cost of each project including estimated total interest, estimated annual operation 21 and maintenance costs, the estimated amounts that will be paid by the state and by the 22 municipality, and the approximate amount that would be due in annual taxes on 23 $100,000 in assessed value to retire the debt; 24 (2) that the bonds may not be refunded unless the annual debt service 25 on the refunding issue is not greater than the annual debt service on the original issue; 26 (3) that the bonds must be repaid in approximately equal annual 27 principal payments or approximately equal debt service payments over a period of at 28 least 10 years; 29 (4) the municipality to demonstrate need for the project by establishing 30 that the school district has 31 (A) projected long-term student enrollment that indicates the
01 district has inadequate facilities to meet present or projected enrollment; 02 (B) facilities that require repair or replacement in order to meet 03 health and safety laws or regulations or building codes; 04 (C) demonstrated that the project will result in a reduction in 05 annual operating costs that economically justifies the cost of the project; or 06 (D) facilities that require modification or rehabilitation for the 07 purpose of improving the instructional program; 08 (5) evidence acceptable to the department that the district 09 (A) has a preventive maintenance plan that 10 (i) includes a computerized maintenance 11 management program, cardex system, or other formal systematic 12 means of tracking the timing and costs associated with planned and 13 completed maintenance activities, including scheduled preventive 14 maintenance; 15 (ii) addresses energy management for buildings 16 owned or operated by the district; 17 (iii) includes a regular custodial care program for 18 buildings owned or operated by the district; 19 (iv) includes preventive maintenance training for 20 facility managers and maintenance employees; 21 (v) includes renewal and replacement schedules for 22 electrical, mechanical, structural, and other components of 23 facilities owned or operated by the district; and 24 (B) is adequately following the preventive maintenance 25 plan. 26 * Sec. 4. AS 14.11.100(k) is repealed. 27 * Sec. 5. This Act takes effect immediately under AS 01.10.070(c).