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SB 82: "An Act relating to education; relating to public school attendance; relating to mobile communication devices in schools; relating to reading proficiency incentive grants; relating to authorization of charter schools; relating to transportation of students; relating to school bond debt reimbursement; relating to funding and reporting by Alaska technical and vocational education programs; authorizing lump sum payments for certain teachers as retention and recruitment incentives; and providing for an effective date."

00 SENATE BILL NO. 82 01 "An Act relating to education; relating to public school attendance; relating to mobile 02 communication devices in schools; relating to reading proficiency incentive grants; 03 relating to authorization of charter schools; relating to transportation of students; 04 relating to school bond debt reimbursement; relating to funding and reporting by 05 Alaska technical and vocational education programs; authorizing lump sum payments 06 for certain teachers as retention and recruitment incentives; and providing for an 07 effective date." 08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 09 * Section 1. AS 14.03.080(a) is amended to read: 10 (a) Subject to AS 14.14.110 and 14.14.120, a [A] child of school age is 11 entitled to attend public school without payment of tuition during the school term 12 (1) in the school district in which the child is a resident; and 13 (2) except as provided in (i) of this section, upon application to a

01 school district, at a school selected by the child's parent in or outside the school 02 district in which the child is a resident subject to 03 (A) capacity limitations of the selected school; 04 (B) a school district enrollment preference policy that 05 prioritizes 06 (i) placement of siblings in the same school; and 07 (ii) enrollment of children in the order of 08 applications received; and 09 (C) regulations that the department shall adopt to 10 (i) require a school district to accept students upon 11 application throughout the school year as capacity becomes 12 available; 13 (ii) require a school district to report to the 14 department and publish on the school district's Internet website 15 annually student enrollment data at each school, including capacity 16 and vacancies for each grade; the number of applications, 17 acceptances, and denials; and the reasons for any denial; 18 (iii) compensate a school district at the end of a 19 school year to account for a year-end ADM that is greater than the 20 district's student count data provided under AS 14.17.600; 21 (iv) establish a student transportation plan; and 22 (v) establish a procedure for appealing a school 23 district's denial of an enrollment application [SUBJECT TO THE 24 PROVISIONS OF AS 14.14.110 AND 14.14.120]. 25 * Sec. 2. AS 14.03.080 is amended by adding a new subsection to read: 26 (i) Nothing in (a)(2) of this section applies to a correspondence study program 27 under AS 14.03.300. 28 * Sec. 3. AS 14.03 is amended by adding a new section to read: 29 Sec. 14.03.103. Mobile communication devices in schools. (a) The governing 30 body of a school district shall adopt a policy to prohibit a student from using a 31 personal mobile communication device in school under the supervision of an

01 employee of the school district except 02 (1) in the event of an emergency or a perceived threat of danger; 03 (2) when a teacher or administrator of the school grants permission to 04 the student to use the device for educational purposes; 05 (3) when use of the device is necessary for the health or well-being of 06 the student; or 07 (4) when use of the device is a required component of the student's 08 individualized education plan. 09 (b) This section does not authorize monitoring, collecting, or accessing 10 information related to a student's use of a personal mobile communication device. 11 (c) In this section, "mobile communication device" means a cellular telephone, 12 smart phone, personal data assistant, wireless tablet, computer, or a similar device 13 used for voice or visual communication. 14 * Sec. 4. AS 14.03 is amended by adding a new section to read: 15 Sec. 14.03.124. Reading proficiency incentive grants. (a) Subject to 16 appropriation, a school district is eligible to receive a reading proficiency incentive 17 grant of $450 for each student in 18 (1) grade kindergarten through three who performs at grade-level or 19 demonstrates improvement on expected grade-level skills on the statewide screening 20 tool adopted by the department under AS 14.30.760; and 21 (2) grade four through six who performs at grade-level or demonstrates 22 a measure of increased proficiency on a standards-based assessment in language arts. 23 (b) The department shall adopt regulations to implement this section. 24 * Sec. 5. AS 14.03.124(a), added by sec. 4 of this Act, is amended to read: 25 (a) Subject to appropriation, a school district is eligible to receive a reading 26 proficiency incentive grant of $450 for each student in 27 [(1)] grade kindergarten through [THREE WHO PERFORMS AT 28 GRADE-LEVEL OR DEMONSTRATES IMPROVEMENT ON EXPECTED 29 GRADE-LEVEL SKILLS ON THE STATEWIDE SCREENING TOOL ADOPTED 30 BY THE DEPARTMENT UNDER AS 14.30.760; AND 31 (2) GRADE FOUR THROUGH] six who performs at grade-level or

01 demonstrates a measure of increased proficiency on a standards-based assessment in 02 language arts. 03 * Sec. 6. AS 14.03 is amended by adding a new section to read: 04 Sec. 14.03.254. Application for charter school to the board. (a) The state 05 Board of Education and Early Development shall prescribe by regulation a procedure 06 for the establishment of a charter school in any school district in the state by 07 application to the state board. 08 (b) The state Board of Education and Early Development shall issue a written 09 decision on an application for a charter school within 90 days after acceptance of the 10 application. If the state board approves a charter school application, the local school 11 board shall operate the charter school as provided in AS 14.03.255 - 14.03.290. 12 * Sec. 7. AS 14.07.170(a) is amended to read: 13 (a) The board may 14 (1) appoint unpaid advisory commissions; 15 (2) require school boards or school personnel to submit to the 16 department, in the form the board may require, the district budget or any information 17 or reports that are reasonably necessary to assist the department in carrying out its 18 functions; 19 (3) authorize the establishment of a charter school to operate as 20 provided in AS 14.03.255 - 14.03.290 in any school district in the state; the board 21 may delegate the authority to authorize establishment of a charter school to a 22 board committee, political subdivision of the state, or state agency, including the 23 University of Alaska; delegation under this paragraph is limited to approving or 24 denying an application for a charter school and is subject to the review and 25 appeal processes applicable to a local school board under AS 14.03.250 and 26 14.03.253. 27 * Sec. 8. AS 14.09.010(a) is repealed and reenacted to read: 28 (a) A school district that provides student transportation services for the 29 transportation of students who reside a distance from established schools is eligible to 30 receive funding for operating or subcontracting the operation of the transportation 31 system for students to and from the schools within the student's transportation service

01 area. Subject to appropriation, the amount of funding provided by the state for 02 operating the student transportation system is the amount of a school district's ADM, 03 less the ADM for the district's correspondence programs during the current fiscal year, 04 multiplied by the per student amount for the school district as follows, for the school 05 year beginning July 1, 2025: 06 DISTRICT PER STUDENT AMOUNT 07 Alaska Gateway $2,790 08 Aleutians East 416 09 Anchorage 584 10 Annette Island 244 11 Bering Strait 66 12 Bristol Bay 3,583 13 Chatham 376 14 Copper River 2,127 15 Cordova 450 16 Craig 567 17 Delta/Greely 2,221 18 Denali 2,423 19 Dillingham 1,632 20 Fairbanks 1,095 21 Galena 341 22 Haines 839 23 Hoonah 400 24 Iditarod 284 25 Juneau 809 26 Kake 364 27 Kashunamiut 7 28 Kenai Peninsula 1,227 29 Ketchikan 975 30 Klawock 783 31 Kodiak Island 1,071

01 Kuspuk 877 02 Lake and Peninsula 515 03 Lower Kuskokwim 372 04 Lower Yukon 1 05 Matanuska-Susitna 1,220 06 Nenana 788 07 Nome 833 08 North Slope 1,502 09 Northwest Arctic 33 10 Pelican 97 11 Petersburg 503 12 Saint Mary's 259 13 Sitka 574 14 Skagway 48 15 Southeast Island 1,549 16 Southwest Region 801 17 Unalaska 869 18 Valdez 987 19 Wrangell 939 20 Yakutat 998 21 Yukon Flats 354 22 Yukon/Koyukuk 419 23 Yupiit 2. 24 * Sec. 9. AS 14.11.014(d) is amended to read: 25 (d) Notwithstanding any other provision of law, the committee may not 26 recommend for approval an application for bond debt reimbursement made by a 27 municipality for school construction or major maintenance for indebtedness authorized 28 by the qualified voters of the municipality on or after January 1, 2015, but before 29 July 1, 2030 [2025]. 30 * Sec. 10. AS 14.11.100(a) is amended to read: 31 (a) During each fiscal year, the state shall allocate to a municipality that is a

01 school district the following sums: 02 (1) payments made by the municipality during the fiscal year two years 03 earlier for the retirement of principal and interest on outstanding bonds, notes, or other 04 indebtedness incurred before July 1, 1977, to pay costs of school construction; 05 (2) 90 percent of 06 (A) payments made by the municipality during the fiscal year 07 two years earlier for the retirement of principal and interest on outstanding 08 bonds, notes, or other indebtedness incurred after June 30, 1977, and before 09 July 1, 1978, to pay costs of school construction; 10 (B) cash payments made after June 30, 1976, and before July 1, 11 1978, by the municipality during the fiscal year two years earlier to pay costs 12 of school construction; 13 (3) 90 percent of 14 (A) payments made by the municipality during the fiscal year 15 two years earlier for the retirement of principal and interest on outstanding 16 bonds, notes, or other indebtedness incurred after June 30, 1978, and before 17 January 1, 1982, to pay costs of school construction projects approved under 18 AS 14.07.020(a)(11); 19 (B) cash payments made after June 30, 1978, and before July 1, 20 1982, by the municipality during the fiscal year two years earlier to pay costs 21 of school construction projects approved under AS 14.07.020(a)(11); 22 (4) subject to (h) and (i) of this section, up to 90 percent of 23 (A) payments made by the municipality during the current 24 fiscal year for the retirement of principal and interest on outstanding bonds, 25 notes, or other indebtedness incurred after December 31, 1981, and authorized 26 by the qualified voters of the municipality before July 1, 1983, to pay costs of 27 school construction, additions to schools, and major rehabilitation projects that 28 exceed $25,000 and are approved under AS 14.07.020(a)(11); 29 (B) cash payments made after June 30, 1982, and before July 1, 30 1983, by the municipality during the fiscal year two years earlier to pay costs 31 of school construction, additions to schools, and major rehabilitation projects

01 that exceed $25,000 and are approved under AS 14.07.020(a)(11); and 02 (C) payments made by the municipality during the current 03 fiscal year for the retirement of principal and interest on outstanding bonds, 04 notes, or other indebtedness to pay costs of school construction, additions to 05 schools, and major rehabilitation projects that exceed $25,000 and are 06 submitted to the department for approval under AS 14.07.020(a)(11) before 07 July 1, 1983, and approved by the qualified voters of the municipality before 08 October 15, 1983, not to exceed a total project cost of (i) $6,600,000 if the 09 annual growth rate of average daily membership of the municipality is more 10 than seven percent but less than 12 percent, or (ii) $20,000,000 if the annual 11 growth rate of average daily membership of the municipality is 12 percent or 12 more; payments made by a municipality under this subparagraph on total 13 project costs that exceed the amounts set out in (i) and (ii) of this subparagraph 14 are subject to (5)(A) of this subsection; 15 (5) subject to (h) - (j) of this section, 80 percent of 16 (A) payments made by the municipality during the fiscal year 17 for the retirement of principal and interest on outstanding bonds, notes, or 18 other indebtedness authorized by the qualified voters of the municipality 19 (i) after June 30, 1983, but before March 31, 1990, to 20 pay costs of school construction, additions to schools, and major 21 rehabilitation projects that exceed $25,000 and are approved under 22 AS 14.07.020(a)(11); or 23 (ii) before July 1, 1989, and reauthorized before 24 November 1, 1989, to pay costs of school construction, additions to 25 schools, and major rehabilitation projects that exceed $25,000 and are 26 approved under AS 14.07.020(a)(11); and 27 (B) cash payments made after June 30, 1983, by the 28 municipality during the fiscal year two years earlier to pay costs of school 29 construction, additions to schools, and major rehabilitation projects that exceed 30 $25,000 and are approved by the department before July 1, 1990, under 31 AS 14.07.020(a)(11);

01 (6) subject to (h) - (j) and (m) of this section, 70 percent of payments 02 made by the municipality during the fiscal year for the retirement of principal and 03 interest on outstanding bonds, notes, or other indebtedness authorized by the qualified 04 voters of the municipality on or after April 30, 1993, but before July 1, 1996, to pay 05 costs of school construction, additions to schools, and major rehabilitation projects 06 that exceed $200,000 and are approved under AS 14.07.020(a)(11); 07 (7) subject to (h) - (j) and (m) of this section, 70 percent of payments 08 made by the municipality during the fiscal year for the retirement of principal and 09 interest on outstanding bonds, notes, or other indebtedness authorized by the qualified 10 voters of the municipality after March 31, 1990, but before April 30, 1993, to pay 11 costs of school construction, additions to schools, and major rehabilitation projects; 12 (8) subject to (h), (i), (j)(2) - (5), and (n) of this section and after 13 projects funded by the bonds, notes, or other indebtedness have been approved by the 14 commissioner, 70 percent of payments made by the municipality during the fiscal year 15 for the retirement of principal and interest on outstanding bonds, notes, or other 16 indebtedness authorized by the qualified voters of the municipality on or after July 1, 17 1995, but before July 1, 1998, to pay costs of school construction, additions to 18 schools, and major rehabilitation projects that exceed $200,000 and are approved 19 under AS 14.07.020(a)(11); 20 (9) subject to (h), (i), (j)(2) - (5), and (n) of this section and after 21 projects funded by the bonds, notes, or other indebtedness have been approved by the 22 commissioner, 70 percent of payments made by the municipality during the fiscal year 23 for the retirement of principal and interest on outstanding bonds, notes, or other 24 indebtedness authorized by the qualified voters of the municipality on or after July 1, 25 1998, but before July 1, 2006, to pay costs of school construction, additions to 26 schools, and major rehabilitation projects that exceed $200,000 and are approved 27 under AS 14.07.020(a)(11); 28 (10) subject to (h), (i), (j)(2) - (5), and (o) of this section, and after 29 projects funded by the bonds, notes, or other indebtedness have been approved by the 30 commissioner, 70 percent of payments made by the 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 1998, to pay costs of school construction, additions to schools, and major 03 rehabilitation projects that exceed $200,000, are approved under AS 14.07.020(a)(11), 04 and are not reimbursed under (n) of this section; 05 (11) subject to (h), (i), and (j)(2) - (5) of this section, and after projects 06 funded by the bonds, notes, or other indebtedness have been approved by the 07 commissioner, 70 percent of payments made by a 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 on or after June 30, 10 1999, but before January 1, 2005, to pay costs of school construction, additions to 11 schools, and major rehabilitation projects and education-related facilities that exceed 12 $200,000, are approved under AS 14.07.020(a)(11), and are not reimbursed under (n) 13 or (o) of this section; 14 (12) subject to (h), (i), and (j)(2), (3), and (5) of this section, 60 percent 15 of payments made by a municipality during the fiscal year for the retirement of 16 principal and interest on outstanding bonds, notes, or other indebtedness authorized by 17 the qualified voters of the municipality on or after June 30, 1999, but before January 1, 18 2005, to pay costs of school construction, additions to schools, and major 19 rehabilitation projects and education-related facilities that exceed $200,000, are 20 reviewed under AS 14.07.020(a)(11), and are not reimbursed under (n) or (o) of this 21 section; 22 (13) subject to (h), (i), (j)(2) - (5), and (p) of this section, and after 23 projects funded by the tax exempt bonds, notes, or other indebtedness have been 24 approved by the commissioner, 70 percent of payments made by a municipality during 25 the fiscal year for the retirement of principal and interest on outstanding tax exempt 26 bonds, notes, or other indebtedness authorized by the qualified voters of the 27 municipality on or after June 30, 1999, but before October 31, 2006, to pay costs of 28 school construction, additions to schools, and major rehabilitation projects and 29 education-related facilities that exceed $200,000, are approved under 30 AS 14.07.020(a)(11), and are not reimbursed under (n) or (o) of this section; 31 (14) subject to (h), (i), (j)(2), (3), and (5), and (p) of this section, 60

01 percent of payments made by a municipality during the fiscal year for the retirement 02 of principal and interest on outstanding tax exempt bonds, notes, or other indebtedness 03 authorized by the qualified voters of the municipality on or after June 30, 1999, but 04 before October 31, 2006, to pay costs of school construction, additions to schools, and 05 major rehabilitation projects and education-related facilities that exceed $200,000, are 06 reviewed under AS 14.07.020(a)(11), and are not reimbursed under (n) or (o) of this 07 section; 08 (15) subject to (h), (i), (j)(2) - (5), and (q) of this section, and after 09 projects funded by the bonds, notes, or other indebtedness have been approved by the 10 commissioner, 90 percent of payments made by a municipality during the fiscal year 11 for the retirement of principal and interest on outstanding bonds, notes, or other 12 indebtedness authorized by the qualified voters of the municipality on or after June 30, 13 1999, but before October 31, 2006, to pay costs of school construction, additions to 14 schools, and major rehabilitation projects and education-related facilities that exceed 15 $200,000, are approved under AS 14.07.020(a)(11), meet the 10 percent participating 16 share requirement for a municipal school district under the former participating share 17 amounts required under AS 14.11.008(b), and are not reimbursed under (n) or (o) of 18 this section; 19 (16) subject to (h), (i), and (j)(2) - (5) of this section, and after projects 20 funded by the tax exempt bonds, notes, or other indebtedness have been approved by 21 the commissioner, 70 percent of payments made by a municipality during the fiscal 22 year for the retirement of principal and interest on outstanding tax exempt bonds, 23 notes, or other indebtedness authorized by the qualified voters of the municipality on 24 or after October 1, 2006, but before January 1, 2015, to pay costs of school 25 construction, additions to schools, and major rehabilitation projects and education- 26 related facilities that exceed $200,000, are approved under AS 14.07.020(a)(11), and 27 are not reimbursed under (o) of this section; 28 (17) subject to (h), (i), and (j)(2), (3), and (5) of this section, 60 percent 29 of payments made by a municipality during the fiscal year for the retirement of 30 principal and interest on outstanding tax exempt bonds, notes, or other indebtedness 31 authorized by the qualified voters of the municipality on or after October 1, 2006, but

01 before January 1, 2015, to pay costs of school construction, additions to schools, and 02 major rehabilitation projects and education-related facilities that exceed $200,000, are 03 reviewed under AS 14.07.020(a)(11), and are not reimbursed under (o) of this section; 04 (18) subject to (h), (i), and (j)(2) - (5) of this section, and after projects 05 funded by the tax exempt bonds, notes, or other indebtedness have been approved by 06 the commissioner, 50 percent of payments made by a municipality during the fiscal 07 year for the retirement of principal of and interest on outstanding tax exempt bonds, 08 notes, or other indebtedness authorized by the qualified voters of the municipality on 09 or after July 1, 2030 [2025], to pay costs of school construction, additions to schools, 10 and major rehabilitation projects and education-related facilities that exceed $200,000, 11 are approved under AS 14.07.020(a)(11), and are not reimbursed under (o) of this 12 section; 13 (19) subject to (h), (i), and (j)(2), (3), and (5) of this section, 40 percent 14 of payments made by a municipality during the fiscal year for the retirement of 15 principal of and interest on outstanding tax exempt bonds, notes, or other indebtedness 16 authorized by the qualified voters of the municipality on or after July 1, 2030 [2025], 17 to pay costs of school construction, additions to schools, and major rehabilitation 18 projects and education-related facilities that exceed $200,000, are reviewed under 19 AS 14.07.020(a)(11), and are not reimbursed under (o) of this section. 20 * Sec. 11. AS 14.11.100(s) is amended to read: 21 (s) Notwithstanding any other provision of law, the commissioner may not 22 approve an application for bond debt reimbursement made by a municipality for 23 school construction or major maintenance for indebtedness authorized by the qualified 24 voters of the municipality on or after January 1, 2015, but before July 1, 2030 [2025]. 25 * Sec. 12. AS 14.11.102(c) is amended to read: 26 (c) The commissioner may not allocate funds to a municipality under 27 AS 14.11.100 for the retirement of the principal of and interest on outstanding tax- 28 exempt bonds, notes, or other indebtedness authorized by the qualified voters of the 29 municipality on or after January 1, 2015, but before July 1, 2030 [2025]. 30 * Sec. 13. AS 14.16.200(b) is amended to read: 31 (b) Costs that may be claimed by a district for reimbursement under (a) of this

01 section are 02 (1) one round trip on the least expensive means of transportation 03 between the student's community of residence and the school during the school year if 04 the district expends money for the trip; and 05 (2) a per-pupil monthly stipend to cover room and board expenses as 06 determined by the department on a regional basis and not to exceed the following 07 amounts: 08 (A) for the Southeast Region (Region I), $1,845 [$1,230]; 09 (B) for the Southcentral Region (Region II), $1,800 [$1,200]; 10 (C) for the Interior Region (Region III), $2,178 [$1,452]; 11 (D) for the Southwest Region (Region IV), $2,264 [$1,509]; 12 (E) for the Northern Remote Region (Region V), $2,664 13 [$1,776]. 14 * Sec. 14. AS 14.17.410(b) is amended to read: 15 (b) Public school funding consists of state aid, a required local contribution, 16 and eligible federal impact aid determined as follows: 17 (1) state aid equals basic need minus a required local contribution and 18 90 percent of eligible federal impact aid for that fiscal year; basic need equals the sum 19 obtained under (D) of this paragraph, multiplied by the base student allocation set out 20 in AS 14.17.470; district adjusted ADM is calculated as follows: 21 (A) the ADM of each school in the district is calculated by 22 applying the school size factor to the student count as set out in AS 14.17.450; 23 (B) the number obtained under (A) of this paragraph is 24 multiplied by the district cost factor described in AS 14.17.460; 25 (C) the ADMs of each school in a district, as adjusted 26 according to (A) and (B) of this paragraph, are added to the number obtained 27 for correspondence study under AS 14.17.430; the sum is then multiplied by 28 the special needs factor set out in AS 14.17.420(a)(1) and the secondary school 29 vocational and technical instruction funding factor set out in 30 AS 14.17.420(a)(3); 31 (D) the number obtained for intensive services under

01 AS 14.17.420(a)(2) is [AND THE NUMBER OBTAINED FOR 02 CORRESPONDENCE STUDY UNDER AS 14.17.430 ARE] added to the 03 number obtained under (C) of this paragraph or under (H) and (I) of this 04 paragraph; 05 (E) notwithstanding (A) - (C) of this paragraph, if a school 06 district's ADM adjusted for school size under (A) of this paragraph decreases 07 by five percent or more from one fiscal year to the next fiscal year, the school 08 district may use the last fiscal year before the decrease as a base fiscal year to 09 offset the decrease, according to the following method: 10 (i) for the first fiscal year after the base fiscal year 11 determined under this subparagraph, the school district's ADM adjusted 12 for school size determined under (A) of this paragraph is calculated as 13 the district's ADM adjusted for school size, plus 75 percent of the 14 difference in the district's ADM adjusted for school size between the 15 base fiscal year and the first fiscal year after the base fiscal year; 16 (ii) for the second fiscal year after the base fiscal year 17 determined under this subparagraph, the school district's ADM adjusted 18 for school size determined under (A) of this paragraph is calculated as 19 the district's ADM adjusted for school size, plus 50 percent of the 20 difference in the district's ADM adjusted for school size between the 21 base fiscal year and the second fiscal year after the base fiscal year; 22 (iii) for the third fiscal year after the base fiscal year 23 determined under this subparagraph, the school district's ADM adjusted 24 for school size determined under (A) of this paragraph is calculated as 25 the district's ADM adjusted for school size, plus 25 percent of the 26 difference in the district's ADM adjusted for school size between the 27 base fiscal year and the third fiscal year after the base fiscal year; 28 (F) the method established in (E) of this paragraph is available 29 to a school district for the three fiscal years following the base fiscal year 30 determined under (E) of this paragraph only if the district's ADM adjusted for 31 school size determined under (A) of this paragraph for each fiscal year is less

01 than the district's ADM adjusted for school size in the base fiscal year; 02 (G) the method established in (E) of this paragraph does not 03 apply to a decrease in the district's ADM adjusted for school size resulting 04 from a loss of enrollment that occurs as a result of a boundary change under 05 AS 29; 06 (H) notwithstanding (A) - (C) of this paragraph, if one or more 07 schools close and consolidate with one or more other schools in the same 08 community and district and, as a result of the consolidation, basic need 09 generated by the district's ADM of the consolidated schools as adjusted under 10 (A) - (C) of this paragraph decreases, the district may use the last fiscal year 11 before the consolidation as the base fiscal year to offset that decrease for the 12 first four fiscal years following consolidation according to the following 13 method: 14 (i) for the first two fiscal years after the base fiscal year, 15 the district's ADM of the consolidated schools as adjusted under (A) - 16 (C) of this paragraph is calculated by dividing the sum of the district's 17 ADM of the consolidated schools as adjusted under (A) - (C) of this 18 paragraph for the base fiscal year by the sum of the district's ADM of 19 the consolidated schools for the base fiscal year without adjustment, 20 and subtracting the quotient obtained by dividing the district's ADM of 21 the consolidated schools for the current fiscal year as adjusted under 22 (A) - (C) of this paragraph by the sum of the district's ADM of the 23 consolidated schools for the current fiscal year without adjustment, 24 multiplying that number by the sum of the district's ADM of the 25 consolidated schools for the current fiscal year without adjustment, and 26 adding that number to the sum of the district's ADM of the consolidated 27 schools for the current fiscal year as adjusted under (A) - (C) of this 28 paragraph; 29 (ii) for the third fiscal year after the base fiscal year, the 30 district's ADM of the consolidated schools as adjusted under (A) - (C) 31 of this paragraph is calculated by dividing the sum of the district's

01 ADM of the consolidated schools as adjusted under (A) - (C) of this 02 paragraph for the base fiscal year by the sum of the district's ADM of 03 the consolidated schools for the base fiscal year without adjustment, 04 and subtracting the quotient obtained by dividing the sum of the 05 district's ADM of the consolidated schools for the current fiscal year as 06 adjusted under (A) - (C) of this paragraph by the sum of the district's 07 ADM of the consolidated schools for the current fiscal year, 08 multiplying that number by the sum of the district's ADM of the 09 consolidated schools for the current fiscal year without adjustment, 10 multiplying that number by 66 percent, and adding that number to the 11 sum of the district's ADM of the consolidated schools for the current 12 fiscal year as adjusted under (A) - (C) of this paragraph; 13 (iii) for the fourth fiscal year after the base fiscal year, 14 the district's ADM of the consolidated schools as adjusted under (A) - 15 (C) of this paragraph is calculated by dividing the sum of the district's 16 ADM of the consolidated schools as adjusted under (A) - (C) of this 17 paragraph for the base fiscal year by the sum of the district's ADM of 18 the consolidated schools for the base fiscal year without adjustment, 19 and subtracting the quotient obtained by dividing the sum of the 20 district's ADM of the consolidated schools for the current fiscal year as 21 adjusted under (A) - (C) of this paragraph by the sum of the district's 22 ADM of the consolidated schools for the current fiscal year, 23 multiplying that number by the sum of the district's ADM of the 24 consolidated schools for the current fiscal year without adjustment, 25 multiplying that number by 33 percent, and adding that number to the 26 sum of the district's ADM of the consolidated schools for the current 27 fiscal year as adjusted under (A) - (C) of this paragraph; 28 (iv) to calculate the district's basic need for each fiscal 29 year, the number obtained through the calculation in (i), (ii), or (iii) of 30 this subparagraph is added to the number obtained under (C) of this 31 paragraph for the remainder of the district;

01 (I) if the basic need calculated under (H)(i) - (iii) of this 02 paragraph for one of the first four fiscal years after consolidation is less than 03 the basic need calculated under (A) - (C) of this paragraph for that fiscal year, 04 the basic need may not be adjusted under (H) of this paragraph for that fiscal 05 year; 06 (J) a district may not offset a decrease under (H) of this 07 paragraph if 08 (i) a new facility is constructed in the district for the 09 consolidation; or 10 (ii) the district offset a decrease under (E) of this 11 paragraph in the same fiscal year; 12 (K) a district that offsets a decrease under (H) of this paragraph 13 may not reopen a school that was closed for consolidation in the district until 14 (i) seven or more years have passed since the school 15 closure; and 16 (ii) the district provides evidence satisfactory to the 17 department that the schools affected by the consolidation are over 18 capacity; 19 (L) a district may not reopen and reconsolidate a school that 20 was consolidated in the district more than once every seven years for purposes 21 of the calculations made under (H) of this paragraph; 22 (M) a district offsetting a decrease under (H) of this paragraph 23 shall provide the department with the list of schools participating in the 24 consolidation and the corresponding ADM; 25 (2) the required local contribution of a city or borough school district is 26 the equivalent of a 2.65 mill tax levy on the full and true value of the taxable real and 27 personal property in the district as of January 1 of the second preceding fiscal year, as 28 determined by the Department of Commerce, Community, and Economic 29 Development under AS 14.17.510 and AS 29.45.110, not to exceed 45 percent of a 30 district's basic need for the preceding fiscal year as determined under (1) of this 31 subsection.

01 * Sec. 15. AS 14.17.420(a) is amended to read: 02 (a) As a component of public school funding, a district is eligible for special 03 needs and secondary school vocational and technical instruction funding and may be 04 eligible for intensive services funding as follows: 05 (1) special needs funding is available to a district to assist the district 06 in providing special education, gifted and talented education, vocational education, 07 and bilingual education services to its students; a special needs funding factor of 1.20 08 shall be applied as set out in AS 14.17.410(b)(1); 09 (2) in addition to the special needs funding for which a district is 10 eligible under (1) of this subsection, a district is eligible for intensive services funding 11 for each special education student who needs and receives intensive services and is 12 enrolled on the last day of the count period; for each such student, intensive services 13 funding is equal to the intensive student count multiplied by 13; 14 (3) in addition to the special needs and intensive services funding 15 available under (1) and (2) of this subsection, secondary school vocational and 16 technical instruction funding is available to assist districts in providing vocational and 17 technical instruction to students who are enrolled in a secondary school; a secondary 18 school vocational and technical instruction funding factor of 1.04 [1.015] shall be 19 applied as set out in AS 14.17.410(b)(1); in this paragraph, "vocational and technical 20 instruction" excludes costs associated with 21 (A) administrative expenses; and 22 (B) instruction in general literacy, mathematics, and job 23 readiness skills. 24 * Sec. 16. AS 14.17.420 is amended by adding a new subsection to read: 25 (d) If a district offers secondary school vocational and technical instruction, in 26 order to receive funding under (a)(3) of this section, the district must file with the 27 department a program plan that indicates how the district's implementation of the 28 program will improve student achievement. A district that receives funding under 29 (a)(3) of this section shall file an annual expenditures report indicating how the funds 30 were used by the district in the prior year. 31 * Sec. 17. AS 14.17.430 is amended to read:

01 Sec. 14.17.430. State funding for correspondence study. Except as provided 02 in AS 14.17.400(b), funding for the state centralized correspondence study program or 03 a district correspondence program, including a district that offers a statewide 04 correspondence study program, includes an allocation from the public education fund 05 in an amount equal to the ADM of the correspondence program [CALCULATED 06 BY MULTIPLYING THE ADM OF THE CORRESPONDENCE PROGRAM BY 90 07 PERCENT]. 08 * Sec. 18. The uncodified law of the State of Alaska is amended by adding a new section to 09 read: 10 LUMP SUM PAYMENT FOR CERTAIN TEACHERS. (a) Subject to appropriation 11 for the fiscal years ending June 30, 2027, June 30, 2028, and June 30, 2029, a certificated full 12 time teacher occupying a position requiring teaching on a regular basis during the normal 13 work period for each day or week at a classroom teaching assignment in a public elementary 14 or secondary school, excluding a person teaching as an assistant or graduate assistant or 15 teaching on a substitute, temporary, or per diem basis, is entitled to receive a lump sum 16 payment as a retention and recruitment incentive on or within a reasonable period after July 1, 17 2026, July 1, 2027, and July 1, 2028, if the teacher was employed in a full-time classroom 18 teaching position for the entirety of the school term for the school year immediately preceding 19 the date of payment and complies with the application requirements of (c) of this section. The 20 Department of Education and Early Development shall reduce the retention and recruitment 21 incentive by the amount necessary to pay mandatory employee and employer deductions, 22 including a deduction required under AS 14.25. 23 (b) Subject to the application and certification requirements in (c) of this section, the 24 Department of Education and Early Development shall pay the retention and recruitment 25 incentive identified in (a) of this section as grants to school districts as follows: 26 (1) $5,000 for each eligible certificated full-time teacher teaching in the 27 following districts: 28 (A) Anchorage School District; 29 (B) Fairbanks North Star Borough School District; 30 (C) Juneau Borough School District; 31 (D) Kenai Peninsula Borough School District;

01 (E) Matanuska-Susitna Borough School District; 02 (2) $10,000 for each eligible certificated full-time teacher teaching in the 03 following districts: 04 (A) Alaska Gateway School District; 05 (B) Aleutian Region School District; 06 (C) Aleutians East Borough School District; 07 (D) Annette Island School District; 08 (E) Chugach School District; 09 (F) Copper River School District; 10 (G) Cordova City School District; 11 (H) Delta/Greely School District; 12 (I) Denali Borough School District; 13 (J) Galena City School District; 14 (K) Haines Borough School District; 15 (L) Ketchikan Gateway Borough School District; 16 (M) Kodiak Island Borough School District; 17 (N) Mount Edgecumbe; 18 (O) Nenana City School District; 19 (P) Nome Public Schools; 20 (Q) Petersburg Borough School District; 21 (R) Saint Mary's School District; 22 (S) Sitka School District; 23 (T) Skagway School District; 24 (U) Unalaska City School District; 25 (V) Valdez City School District; 26 (W) Wrangell Public School District; 27 (X) Yakutat School District; 28 (3) $15,000 for each eligible certificated full-time teacher teaching in the 29 following districts: 30 (A) Bering Strait School District; 31 (B) Bristol Bay Borough School District;

01 (C) Chatham School District; 02 (D) Craig City School District; 03 (E) Dillingham City School District; 04 (F) Hoonah City School District; 05 (G) Hydaburg City School District; 06 (H) Iditarod Area School District; 07 (I) Kake City School District; 08 (J) Kashunamiut School District; 09 (K) Klawock City School District; 10 (L) Kuspuk School District; 11 (M) Lake and Peninsula Borough School District; 12 (N) Lower Kuskokwim School District; 13 (O) Lower Yukon School District; 14 (P) North Slope Borough School District; 15 (Q) Northwest Arctic Borough School District; 16 (R) Pelican City School District; 17 (S) Pribilof School District; 18 (T) Southeast Island School District; 19 (U) Southwest Region School District; 20 (V) Yukon Flats School District; 21 (W) Yukon-Koyukuk School District; 22 (X) Yupiit School District. 23 (c) To be eligible for the retention and recruitment incentive identified in (a) of this 24 section, a certificated full-time teacher must apply during each eligible calendar year to the 25 Department of Education and Early Development on a date not later than the final day the 26 teacher's school is in session for the school term. The teacher shall apply for the payment 27 under this section on a form designated by the commissioner of education and early 28 development. For each teacher who applies, the school district or regional educational 29 attendance area shall certify the teacher's eligibility for payment under (a) of this section to 30 the Department of Education and Early Development. 31 (d) A payment made under this section is considered compensation for the purposes

01 of AS 14.25. 02 (e) The Department of Education and Early Development may adopt regulations 03 necessary to carry out the purposes of this section. 04 * Sec. 19. The uncodified law of the State of Alaska is amended by adding a new section to 05 read: 06 REPORT TO THE LEGISLATURE. (a) The house and senate education committees 07 shall jointly prepare a report to the legislature that provides 08 (1) recommendations for any change to public school foundation funding; 09 (2) a survey of each school district's curriculum, programs, and services and 10 an explanation of whether there is any duplication of the curriculum, programs, or services 11 within the district; 12 (3) a definition of "accountability" as that term applies to measuring school 13 and student performance; and 14 (4) recommended metrics for determining school and student performance 15 other than the standardized testing that is currently used. 16 (b) The house and senate education committees shall deliver a copy of the report to 17 the senate secretary and the chief clerk of the house of representatives, and notify the 18 legislature that the report is available, before the first day of the First Regular Session of the 19 Thirty-Fifth Alaska State Legislature. 20 * Sec. 20. The uncodified law of the State of Alaska is amended by adding a new section to 21 read: 22 TRANSITION: REGULATIONS. The Department of Education and Early 23 Development may proceed to adopt regulations to implement this Act. The regulations take 24 effect under AS 44.62 (Administrative Procedure Act) but not before the effective date of the 25 law implemented by the regulations. 26 * Sec. 21. Section 6, ch. 3, SLA 2015, as amended by sec. 5, ch. 6, SLA 2020, is amended 27 to read: 28 Sec. 6. AS 14.11.014(d), 14.11.100(s), and 14.11.102(c) are repealed July 1, 29 2030 [2025]. 30 * Sec. 22. Section 5 of this Act takes effect June 30, 2034. 31 * Sec. 23. Sections 9 - 12 and 21 of this Act take effect June 30, 2025.

01 * Sec. 24. Section 20 of this Act takes effect immediately under AS 01.10.070(c). 02 * Sec. 25. Sections 4, 8, and 13 - 19 of this Act take effect July 1, 2025. 03 * Sec. 26. Except as provided in secs. 22 - 25 of this Act, this Act takes effect July 1, 2026.