CSHB 493(FIN): "An Act relating to reimbursement of municipal bonds for school construction."
00 CS FOR HOUSE BILL NO. 493(FIN) 01 "An Act relating to reimbursement of municipal bonds for school construction." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. AS 14.11.100(a) is amended to read: 04 (a) During each fiscal year, the state shall allocate to a municipality that is a 05 school district the following sums: 06 (1) payments made by the municipality during the fiscal year two years 07 earlier for the retirement of principal and interest on outstanding bonds, notes, or other 08 indebtedness incurred before July 1, 1977, to pay costs of school construction; 09 (2) 90 percent of 10 (A) payments made by the municipality during the fiscal year 11 two years earlier for the retirement of principal and interest on outstanding 12 bonds, notes, or other indebtedness incurred after June 30, 1977, and before 13 July 1, 1978, to pay costs of school construction; 14 (B) cash payments made after June 30, 1976, and before July 1, 15 1978, by the municipality during the fiscal year two years earlier to pay costs
01 of school construction; 02 (3) 90 percent of 03 (A) payments made by the municipality during the fiscal year 04 two years earlier for the retirement of principal and interest on outstanding 05 bonds, notes, or other indebtedness incurred after June 30, 1978, and before 06 January 1, 1982, to pay costs of school construction projects approved under 07 AS 14.07.020(a)(11); 08 (B) cash payments made after June 30, 1978, and before July 1, 09 1982, by the municipality during the fiscal year two years earlier to pay costs 10 of school construction projects approved under AS 14.07.020(a)(11); 11 (4) subject to (h) and (i) of this section, up to 90 percent of 12 (A) payments made by the municipality during the current 13 fiscal year for the retirement of principal and interest on outstanding bonds, 14 notes, or other indebtedness incurred after December 31, 1981, and authorized 15 by the qualified voters of the municipality before July 1, 1983, to pay costs of 16 school construction, additions to schools, and major rehabilitation projects that 17 exceed $25,000 and are approved under AS 14.07.020(a)(11); 18 (B) cash payments made after June 30, 1982, and before July 1, 19 1983, by the municipality during the fiscal year two years earlier to pay costs 20 of school construction, additions to schools, and major rehabilitation projects 21 that exceed $25,000 and are approved under AS 14.07.020(a)(11); and 22 (C) payments made by the municipality during the current 23 fiscal year for the retirement of principal and interest on outstanding bonds, 24 notes, or other indebtedness to pay costs of school construction, additions to 25 schools, and major rehabilitation projects that exceed $25,000 and are 26 submitted to the department for approval under AS 14.07.020(a)(11) before 27 July 1, 1983, and approved by the qualified voters of the municipality before 28 October 15, 1983, not to exceed a total project cost of (i) $6,600,000 if the 29 annual growth rate of average daily membership of the municipality is more 30 than seven percent but less than 12 percent, or (ii) $20,000,000 if the annual 31 growth rate of average daily membership of the municipality is 12 percent or
01 more; payments made by a municipality under this subparagraph on total 02 project costs that exceed the amounts set out in (i) and (ii) of this subparagraph 03 are subject to (5)(A) of this subsection; 04 (5) subject to (h) - (j) of this section, 80 percent of 05 (A) payments made by the municipality during the fiscal year 06 for the retirement of principal and interest on outstanding bonds, notes, or 07 other indebtedness authorized by the qualified voters of the municipality 08 (i) after June 30, 1983, but before March 31, 1990, to 09 pay costs of school construction, additions to schools, and major 10 rehabilitation projects that exceed $25,000 and are approved under 11 AS 14.07.020(a)(11); or 12 (ii) before July 1, 1989, and reauthorized before 13 November 1, 1989, to pay costs of school construction, additions to 14 schools, and major rehabilitation projects that exceed $25,000 and are 15 approved under AS 14.07.020(a)(11); and 16 (B) cash payments made after June 30, 1983, by the 17 municipality during the fiscal year two years earlier to pay costs of school 18 construction, additions to schools, and major rehabilitation projects that exceed 19 $25,000 and are approved by the department before July 1, 1990, under 20 AS 14.07.020(a)(11); 21 (6) subject to (h) - (j) and (m) of this section, 70 percent of payments 22 made by the municipality during the fiscal year for the retirement of principal and 23 interest on outstanding bonds, notes, or other indebtedness authorized by the qualified 24 voters of the municipality on or after April 30, 1993, but before July 1, 1996, to pay 25 costs of school construction, additions to schools, and major rehabilitation projects 26 that exceed $200,000 and are approved under AS 14.07.020(a)(11); 27 (7) subject to (h) - (j) and (m) of this section, 70 percent of payments 28 made by the municipality during the fiscal year for the retirement of principal and 29 interest on outstanding bonds, notes, or other indebtedness authorized by the qualified 30 voters of the municipality after March 31, 1990, but before April 30, 1993, to pay 31 costs of school construction, additions to schools, and major rehabilitation projects;
01 (8) subject to (h), (i), (j)(2) - (5), and (n) of this section and after 02 projects funded by the bonds, notes, or other indebtedness have been approved by the 03 commissioner, 70 percent of payments made by the municipality during the fiscal year 04 for the retirement of principal and interest on outstanding bonds, notes, or other 05 indebtedness authorized by the qualified voters of the municipality on or after July 1, 06 1995, but before July 1, 1998, to pay costs of school construction, additions to 07 schools, and major rehabilitation projects that exceed $200,000 and are approved 08 under AS 14.07.020(a)(11); 09 (9) subject to (h), (i), (j)(2) - (5), and (n) of this section and after 10 projects funded by the bonds, notes, or other indebtedness have been approved by the 11 commissioner, 70 percent of payments made by the municipality during the fiscal year 12 for the retirement of principal and interest on outstanding bonds, notes, or other 13 indebtedness authorized by the qualified voters of the municipality on or after July 1, 14 1998, but before July 1, 2006, to pay costs of school construction, additions to 15 schools, and major rehabilitation projects that exceed $200,000 and are approved 16 under AS 14.07.020(a)(11); 17 (10) subject to (h), (i), (j)(2) - (5), and (o) of this section, and after 18 projects funded by the bonds, notes, or other indebtedness have been approved by the 19 commissioner, 70 percent of payments made by the municipality during the fiscal year 20 for the retirement of principal and interest on outstanding bonds, notes, or other 21 indebtedness authorized by the qualified voters of the municipality on or after June 30, 22 1998, to pay costs of school construction, additions to schools, and major 23 rehabilitation projects that exceed $200,000, are approved under AS 14.07.020(a)(11), 24 and are not reimbursed under (n) of this section; 25 (11) subject to (h), (i), and (j)(2) - (5) of this section, and after projects 26 funded by the bonds, notes, or other indebtedness have been approved by the 27 commissioner, 70 percent of payments made by a municipality during the fiscal year 28 for the retirement of principal and interest on outstanding bonds, notes, or other 29 indebtedness authorized by the qualified voters of the municipality on or after June 30, 30 1999, but before January 1, 2005, to pay costs of school construction, additions to 31 schools, and major rehabilitation projects and education-related facilities that exceed
01 $200,000, are approved under AS 14.07.020(a)(11), and are not reimbursed under (n) 02 or (o) of this section; 03 (12) subject to (h), (i), and (j)(2), (3), and (5) of this section, 60 percent 04 of payments made by a municipality during the fiscal year for the retirement of 05 principal and interest on outstanding bonds, notes, or other indebtedness authorized by 06 the qualified voters of the municipality on or after June 30, 1999, but before January 1, 07 2005, to pay costs of school construction, additions to schools, and major 08 rehabilitation projects and education-related facilities that exceed $200,000, are 09 reviewed under AS 14.07.020(a)(11), and are not reimbursed under (n) or (o) of this 10 section; 11 (13) subject to (h), (i), (j)(2) - (5), and (p) of this section, and after 12 projects funded by the tax exempt bonds, notes, or other indebtedness have been 13 approved by the commissioner, 70 percent of payments made by a municipality during 14 the fiscal year for the retirement of principal and interest on outstanding tax exempt 15 bonds, notes, or other indebtedness authorized by the qualified voters of the 16 municipality on or after June 30, 1999, but before October 31, 2006, to pay costs of 17 school construction, additions to schools, and major rehabilitation projects and 18 education-related facilities that exceed $200,000, are approved under 19 AS 14.07.020(a)(11), and are not reimbursed under (n) or (o) of this section; 20 (14) subject to (h), (i), (j)(2), (3), and (5), and (p) of this section, 60 21 percent of payments made by a municipality during the fiscal year for the retirement 22 of principal and interest on outstanding tax exempt bonds, notes, or other indebtedness 23 authorized by the qualified voters of the municipality on or after June 30, 1999, but 24 before October 31, 2006, to pay costs of school construction, additions to schools, and 25 major rehabilitation projects and education-related facilities that exceed $200,000, are 26 reviewed under AS 14.07.020(a)(11), and are not reimbursed under (n) or (o) of this 27 section; 28 (15) subject to (h), (i), (j)(2) - (5), and (q) of this section, and after 29 projects funded by the bonds, notes, or other indebtedness have been approved by the 30 commissioner, 90 percent of payments made by a municipality during the fiscal year 31 for the retirement of principal and interest on outstanding bonds, notes, or other
01 indebtedness authorized by the qualified voters of the municipality on or after June 30, 02 1999, but before October 31, 2006, to pay costs of school construction, additions to 03 schools, and major rehabilitation projects and education-related facilities that exceed 04 $200,000, are approved under AS 14.07.020(a)(11), meet the 10 percent participating 05 share requirement for a municipal school district under AS 14.11.008(b), and are not 06 reimbursed under (n) or (o) of this section; 07 (16) subject to (h), (i), and (j)(2) - (5) of this section, and after 08 projects funded by the tax exempt bonds, notes, or other indebtedness have been 09 approved by the commissioner, 60 percent of payments made by a municipality 10 during the fiscal year for the retirement of principal and interest on outstanding 11 tax exempt bonds, notes, or other indebtedness authorized by the qualified voters 12 of the municipality on or after November 1, 2006, but before November 30, 2008, 13 to pay costs of school construction, additions to schools, and major rehabilitation 14 projects and education-related facilities that exceed $200,000, are approved 15 under AS 14.07.020(a)(11), and are not reimbursed under (o) of this section; 16 (17) subject to (h), (i), and (j)(2), (3), and (5) of this section, 40 17 percent of payments made by a municipality during the fiscal year for the 18 retirement of principal and interest on outstanding tax exempt bonds, notes, or 19 other indebtedness authorized by the qualified voters of the municipality on or 20 after November 1, 2006, but before November 30, 2008, to pay costs of school 21 construction, additions to schools, and major rehabilitation projects and 22 education-related facilities that exceed $200,000, are reviewed under 23 AS 14.07.020(a)(11), and are not reimbursed under (o) of this section. 24 * Sec. 2. AS 14.11.100(j) is amended to read: 25 (j) Except as provided in (l) of this section, the state may not allocate money 26 to a municipality for a school construction project under (a)(5), (6), or (7) of this 27 section unless the municipality complies with the requirements of (1) - (5) of this 28 subsection, the project is approved by the commissioner before the local vote on the 29 bond issue for the project or for bonds authorized after March 31, 1990, but on or 30 before April 30, 1993, the bonds are approved by the commissioner before 31 reimbursement by the state, and the local vote occurs before July 1, 1987, or after
01 June 30, 1988. In approving a project under this subsection, and to the extent required 02 under (a)(8) - (17) [(a)(8) - (15)] of this section, the commissioner shall require 03 (1) the municipality to include on the ballot for the bond issue, for 04 bonds authorized on or before March 31, 1990, or after April 30, 1993, the estimated 05 total cost of each project including estimated total interest, estimated annual operation 06 and maintenance costs, the estimated amounts that will be paid by the state and by the 07 municipality, and the approximate amount that would be due in annual taxes on 08 $100,000 in assessed value to retire the debt; 09 (2) that the bonds may not be refunded unless the annual debt service 10 on the refunding issue is not greater than the annual debt service on the original issue; 11 (3) that the bonds must be repaid in approximately equal annual 12 principal payments or approximately equal debt service payments over a period of at 13 least 10 years; 14 (4) the municipality to demonstrate need for the project by establishing 15 that the school district has 16 (A) projected long-term student enrollment that indicates the 17 district has inadequate facilities to meet present or projected enrollment; 18 (B) facilities that require repair or replacement in order to meet 19 health and safety laws or regulations or building codes; 20 (C) demonstrated that the project will result in a reduction in 21 annual operating costs that economically justifies the cost of the project; or 22 (D) facilities that require modification or rehabilitation for the 23 purpose of improving the instructional program; 24 (5) evidence acceptable to the department that the district 25 (A) has a preventive maintenance plan that 26 (i) includes a computerized maintenance management 27 program, cardex system, or other formal systematic means of tracking 28 the timing and costs associated with planned and completed 29 maintenance activities, including scheduled preventive maintenance; 30 (ii) addresses energy management for buildings owned 31 or operated by the district;
01 (iii) includes a regular custodial care program for 02 buildings owned or operated by the district; 03 (iv) includes preventive maintenance training for 04 facility managers and maintenance employees; and 05 (v) includes renewal and replacement schedules for 06 electrical, mechanical, structural, and other components of facilities 07 owned or operated by the district; and 08 (B) is adequately following the preventive maintenance plan.