HB42 SCHOOL GRANTS AND BOND DEBT REIMBURSEMENT

Plain English Breakdown

The bill text specifies that new rules apply to indebtedness authorized on or after July 1, 2025, leaving uncertainty for projects approved before this date.

School Construction Grants and Bond Debt Reimbursement Rules

This bill changes the deadline for school construction plans to July 1 and sets limits on how many projects a district can get state reimbursement for at one time.

What This Bill Does

Moves the deadline for submitting six-year capital improvement plans from September 1 to July 1 of the fiscal year before funding is requested.
Requires school districts to include details about their fixed asset inventory system and preventive maintenance program in their plan submission.
Limits state bond debt reimbursement so that one district can only get paid back for one new school construction project at a time, unless all its projects are ranked in the top 20 statewide.
Allows districts to receive reimbursement for up to two major maintenance projects, or more if all their projects rank within the top 20 on the state list.
Removes an older rule that allowed reimbursement for voter-approved bonds authorized between January 1, 2015, and July 1, 2025.

Who It Names or Affects

Alaska school districts and regional educational attendance areas seeking state grants or bond debt reimbursement.
The Department of Education officials who review applications and rank projects.

Terms To Know

Bond debt reimbursement: State money used to pay back the principal and interest on loans a school district took out for building or maintenance.
Capital improvement plan: A six-year document listing planned construction projects, budgets, and reasons why they are needed.
Preventive maintenance program: A formal system for tracking scheduled care to keep school buildings working well before major repairs are needed.

Limits and Unknowns

The new rules only apply to bonds authorized by voters on or after July 1, 2025.
The bill does not specify how much total money is available for these grants in any given year.

Official Summary Text

SCHOOL GRANTS AND BOND DEBT REIMBURSEMENT
An Act relating to funding for school construction and major maintenance; relating to school bond debt reimbursement; and providing for an effective date.

Current Bill Text

Read the full stored bill text

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HOUSE BILL NO. 42

IN THE LEGISLATURE OF THE STATE OF ALASKA

THIRTY-FOURTH LEGISLATURE - FIRST SESSION

BY REPRESENTATIVE ALLARD

Introduced: 1/22/25
Referred: Education, Finance

A BILL

FOR AN ACT ENTITLED

"An Act relating to funding for school construction and major m aintenance; relating to 1
school bond debt reimbursement; and providing for an effective date." 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 3
* Section 1. AS 14.11.011(b) is amended to read: 4
(b) For a municipality that is a school district or a regional educational 5
attendance area to be eligible for a grant under this chapter, the district shall submit 6
(1) a six-year capital improvement plan that includes a descri ption of 7
the district's fixed asset inventory system and preventive main tenance program not 8
[NO] later than July [SEPTEMBER] 1 of the fiscal year before the fiscal year for 9
which the request is made; the six-year plan must contain for e ach proposed project a 10
detailed scope of work, a proj ect budget, and documentation of conditions justifying 11
the project; 12
(2) evidence that the district has secured and will maintain a dequate 13
property loss insurance for the replacement cost of all facilit ies for which state funds 14
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are available under AS 14.11.005 or 14.11.007 or has a program of insurance 1
acceptable to the department; 2
(3) evidence acceptable to the department that the proposed pr oject 3
should be a capital improvement p roject and not part of a preve ntive maintenance 4
program or regular custodial care program; and 5
(4) evidence acceptable to the department that the district 6
(A) has a preventive maintenance plan that 7
(i) includes a computeriz ed maintenance management 8
program, cardex system, or other formal systematic means of tra cking 9
the timing and costs associated with planned and completed 10
maintenance activities, including scheduled preventive maintenance; 11
(ii) addresses energy management for buildings owned 12
or operated by the district; 13
(iii) includes a regular custodial care program for 14
buildings owned or operated by the district; 15
(iv) includes preventive ma intenance training for 16
facility managers and maintenance employees; 17
(v) includes renewal and replacement schedules for 18
electrical, mechanical , structural, and other components of fac ilities 19
owned or operated by the district; and 20
(B) is adequately adhering to the preventive maintenance plan. 21
* Sec. 2. AS 14.11.014(d) is amended to read: 22
(d) Notwithstanding any other provision of law, the committee may not 23
recommend for approval an applica tion for bond debt reimburseme n t m a d e b y a 24
municipality 25
(1) for more than one school construction project listed on the 26
department's ranking of school construction project priorities under 27
AS 14.11.013(b); or 28
( 2 ) f o r m o r e t h a n t w o m a j o r m a intenance projects listed on the 29
department's ranking of major maintenance project priorities un der 30
AS 14.11.013(b), except that the committee may recommend for ap proval an 31
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application for bond debt reimbursement made by a municipality for all the 1
major maintenance projects of the municipality that are ranked within the top 20 2
projects on the department's list of major maintenance project priorities [ O R 3
MAJOR MAINTENANCE FOR INDEBTEDNESS AUTHORIZED BY THE 4
QUALIFIED VOTERS OF THE MUNICIPALITY ON OR AFTER JANUARY 1, 5
2015, BUT BEFORE JULY 1, 2025]. 6
* Sec. 3. AS 14.11.100(s) is amended to read: 7
(s) Notwithstanding any other provision of law, the commission er may not 8
approve an application for bond debt reimbursement made by a municipality 9
(1) for more than one school construction project listed on the 10
department's ranking of school construction project priorities under 11
AS 14.11.013(b); or 12
( 2 ) f o r m o r e t h a n t w o m a j o r m a intenance projects listed on the 13
department's ranking of major maintenance project priorities un der 14
AS 14.11.013(b), except that the commissioner may approve an ap plication for 15
bond debt reimbursement made by a municipality for all the majo r maintenance 16
projects of the municipality that are ranked within the top 20 projects on the 17
department's list of major maintenance project priorities [OR MAJOR 18
MAINTENANCE FOR INDEBTEDNESS AUTHORIZED BY THE QUALIFIED 19
VOTERS OF THE MUNICIPALITY ON OR AFTER JANUARY 1, 2015, BUT 20
BEFORE JULY 1, 2025]. 21
* Sec. 4. AS 14.11.102(c) is amended to read: 22
(c) The commissioner may not allocate funds to a municipality under 23
AS 14.11.100 for the retirement of the principal of and interes t on outstanding tax- 24
exempt bonds, notes, or other indebtedness 25
( 1 ) f o r m o r e t h a n o n e s c h o o l c o nstruction project listed on th e 26
department's ranking of school construction project priorities under 27
AS 14.11.013(b); or 28
( 2 ) f o r m o r e t h a n t w o m a j o r m a intenance projects listed on the 29
department's ranking of major maintenance project priorities un der 30
AS 14.11.013(b), except that the commissioner may allocate fund s to a 31
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municipality for the retirement of the principal of and interes t on outstanding 1
tax-exempt bonds, notes, or other indebtedness for all the majo r maintenance 2
projects of the municipality that are ranked within the top 20 projects on the 3
department's list of major maintenance project priorities [AUTHORIZED BY 4
THE QUALIFIED VOTERS OF THE MUNICIPALITY ON OR AFTER JANUARY 5
1, 2015, BUT BEFORE JULY 1, 2025]. 6
* Sec. 5. Section 6, ch. 3, SLA 2015, as amended by sec. 5, ch. 6, SLA 2020, is repealed. 7
* Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 8
read: 9
APPLICABILITY. AS 14.11.011(b), as amended by sec. 1 of this Ac t, 10
AS 14.11.014(d), as amended by sec. 2 of this Act, AS 14.11.100 (s), as amended by sec. 3 of 11
this Act, and AS 14.11.102(c), as amended by sec. 4 of this Act , apply to an application for 12
bond debt reimbursement made by a municipality for school const ruction or major 13
maintenance for indebtedness au thorized by the qualified voters of the municipality on or 14
after July 1, 2025. 15
* Sec. 7. This Act takes effect July 1, 2025. 16