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SB0184A -1- SB 184
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SENATE BILL NO. 184
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-FOURTH LEGISLATURE - FIRST SESSION
BY THE SENATE FINANCE COMMITTEE
Introduced: 4/25/25
Referred: Finance
A BILL
FOR AN ACT ENTITLED
"An Act relating to school bond debt reimbursement; and providi n g f o r a n e f f e c t i v e 1
date." 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 3
* Section 1. AS 14.11.014(d) is amended to read: 4
(d) Notwithstanding any other provision of law, the committee may not 5
recommend for approval an applica tion for bond debt reimburseme n t m a d e b y a 6
municipality for school construction or major maintenance for indebtedness authorized 7
by the qualified voters of the m unicipality on or after January 1, 2015, but before 8
July 1, 2027 [2025]. 9
* Sec. 2. AS 14.11.100(a) is amended to read: 10
(a) During each fiscal year, the state shall allocate to a mun icipality that is a 11
school district the following sums: 12
(1) payments made by the municipality during the fiscal year two years 13
earlier for the retirement of principal and interest on outstanding bonds, notes, or other 14
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indebtedness incurred before July 1, 1977, to pay costs of school construction; 1
(2) 90 percent of 2
(A) payments made by the municipality during the fiscal year 3
two years earlier for the retirement of principal and interest on outstanding 4
bonds, notes, or other indebtedness incurred after June 30, 197 7, and before 5
July 1, 1978, to pay costs of school construction; 6
(B) cash payments made after June 30, 1976, and before July 1, 7
1978, by the municipality during the fiscal year two years earl ier to pay costs 8
of school construction; 9
(3) 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, 197 8, and before 13
January 1, 1982, to pay costs of school construction projects a pproved under 14
AS 14.07.020(a)(11); 15
(B) cash payments made after June 30, 1978, and before July 1, 16
1982, by the municipality during the fiscal year two years earl ier to pay costs 17
of school construction projects approved under AS 14.07.020(a)(11); 18
(4) subject to (h) and (i) of this section, up to 90 percent of 19
(A) payments made by the municipality during the current 20
fiscal year for the retirement of principal and interest on out standing bonds, 21
notes, or other indebtedness incurred after December 31, 1981, and authorized 22
by the qualified voters of the municipality before July 1, 1983 , to pay costs of 23
school construction, additions to schools, and major rehabilitation projects that 24
exceed $25,000 and are approved under AS 14.07.020(a)(11); 25
(B) cash payments made after June 30, 1982, and before July 1, 26
1983, by the municipality during the fiscal year two years earl ier to pay costs 27
of school construction, additions to schools, and major rehabil itation projects 28
that exceed $25,000 and are approved under AS 14.07.020(a)(11); and 29
(C) payments made by the municipality during the current 30
fiscal year for the retirement of principal and interest on out standing bonds, 31
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notes, or other indebtedness to pay costs of school constructio n, additions to 1
schools, and major rehabilitati on projects that exceed $25,000 and are 2
submitted to the department for approval under AS 14.07.020(a)( 11) before 3
July 1, 1983, and approved by the qualified voters of the munic ipality before 4
October 15, 1983, not to exceed a total project cost of (i) $6, 600,000 if the 5
annual growth rate of average daily membership of the municipal ity is more 6
than seven percent but less than 12 percent, or (ii) $20,000,00 0 if the annual 7
growth rate of average daily mem bership of the municipality is 12 percent or 8
more; payments made by a municipality under this subparagraph o n total 9
project costs that exceed the amounts set out in (i) and (ii) of this subparagraph 10
are subject to (5)(A) of this subsection; 11
(5) subject to (h) - (j) of this section, 80 percent of 12
(A) payments made by the municipality during the fiscal year 13
for the retirement of principal and interest on outstanding bon ds, notes, or 14
other indebtedness authorized by the qualified voters of the municipality 15
(i) after June 30, 1983, but before March 31, 1990, to 16
pay costs of school construction, additions to schools, and maj or 17
rehabilitation projects that exceed $25,000 and are approved un der 18
AS 14.07.020(a)(11); or 19
(ii) before July 1, 1989, and reauthorized before 20
November 1, 1989, to pay costs o f school construction, addition s to 21
schools, and major rehabilitati on projects that exceed $25,000 and are 22
approved under AS 14.07.020(a)(11); and 23
(B) cash payments made after June 30, 1983, by the 24
municipality during the fiscal year two years earlier to pay co sts of school 25
construction, additions to schools, and major rehabilitation projects that exceed 26
$25,000 and are approved by the department before July 1, 1990, under 27
AS 14.07.020(a)(11); 28
(6) subject to (h) - (j) and (m ) of this section, 70 percent o f payments 29
made by the municipality during the fiscal year for the retirem ent of principal and 30
interest on outstanding bonds, not es, or other indebtedness aut horized by the qualified 31
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voters of the municipality on or after April 30, 1993, but befo re July 1, 1996, to pay 1
costs of school construction, a dditions to schools, and major r ehabilitation projects 2
that exceed $200,000 and are approved under AS 14.07.020(a)(11); 3
(7) subject to (h) - (j) and (m ) of this section, 70 percent o f payments 4
made by the municipality during the fiscal year for the retirem ent of principal and 5
interest on outstanding bonds, not es, or other indebtedness aut horized by the qualified 6
voters of the municipality after March 31, 1990, but before Apr il 30, 1993, to pay 7
costs of school construction, additions to schools, and major rehabilitation projects; 8
(8) subject to (h), (i), (j)(2) - (5), and (n) of this section and after 9
projects funded by the bonds, not es, or other indebtedness have been approved by the 10
commissioner, 70 percent of payments made by the municipality during the fiscal year 11
for the retirement of principal and interest on outstanding bon ds, notes, or other 12
indebtedness authorized by the qualified voters of the municipa lity on or after July 1, 13
1995, but before July 1, 1998, to pay costs of school construct ion, additions to 14
schools, and major rehabilitation projects that exceed $200,000 and are approved 15
under AS 14.07.020(a)(11); 16
(9) subject to (h), (i), (j)(2) - (5), and (n) of this section and after 17
projects funded by the bonds, not es, or other indebtedness have been approved by the 18
commissioner, 70 percent of payments made by the municipality during the fiscal year 19
for the retirement of principal and interest on outstanding bon ds, notes, or other 20
indebtedness authorized by the qualified voters of the municipa lity on or after July 1, 21
1998, but before July 1, 2006, to pay costs of school construct ion, additions to 22
schools, and major rehabilitation projects that exceed $200,000 and are approved 23
under AS 14.07.020(a)(11); 24
(10) subject to (h), (i), (j)(2) - (5), and (o) of this sectio n, and after 25
projects funded by the bonds, not es, or other indebtedness have been approved by the 26
commissioner, 70 percent of payments made by the municipality during the fiscal year 27
for the retirement of principal and interest on outstanding bon ds, notes, or other 28
indebtedness authorized by the qualified voters of the municipality on or after June 30, 29
1998, to pay costs of school construction, additions to schools , and major 30
rehabilitation projects that exceed $200,000, are approved unde r AS 14.07.020(a)(11), 31
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and are not reimbursed under (n) of this section; 1
(11) subject to (h), (i), and (j )(2) - (5) of this section, an d after projects 2
funded by the bonds, notes, or o ther indebtedness have been app roved by the 3
commissioner, 70 percent of payme nts made by a municipality dur ing the fiscal year 4
for the retirement of principal and interest on outstanding bon ds, notes, or other 5
indebtedness authorized by the qualified voters of the municipality on or after June 30, 6
1999, but before January 1, 2005, to pay costs of school constr uction, additions to 7
schools, and major rehabilitation projects and education-relate d facilities that exceed 8
$200,000, are approved under AS 14.07.020(a)(11), and are not r eimbursed under (n) 9
or (o) of this section; 10
(12) subject to (h), (i), and (j)(2), (3), and (5) of this section, 60 percent 11
of payments made by a municipality during the fiscal year for t he retirement of 12
principal and interest on outstanding bonds, notes, or other indebtedness authorized by 13
the qualified voters of the municipality on or after June 30, 1999, but before January 1, 14
2005, to pay costs of school construction, additions to schools , and major 15
rehabilitation projects and education-related facilities that e xceed $200,000, are 16
reviewed under AS 14.07.020(a)(11), and are not reimbursed unde r (n) or (o) of this 17
section; 18
(13) subject to (h), (i), (j)(2) - (5), and (p) of this sectio n, and after 19
projects funded by the tax exempt bonds, notes, or other indebt edness have been 20
approved by the commissioner, 70 percent of payments made by a municipality during 21
the fiscal year for the retirement of principal and interest on outstanding tax exempt 22
bonds, notes, or other indebtedne ss authorized by the qualified voters of the 23
municipality on or after June 30, 1999, but before October 31, 2006, to pay costs of 24
school construction, additions t o schools, and major rehabilita tion projects and 25
education-related facilities that exceed $200,000, are approved under 26
AS 14.07.020(a)(11), and are not reimbursed under (n) or (o) of this section; 27
(14) subject to (h), (i), (j)(2), (3), and (5), and (p) of thi s section, 60 28
percent of payments made by a municipality during the fiscal ye ar for the retirement 29
of principal and interest on outstanding tax exempt bonds, notes, or other indebtedness 30
authorized by the qualified vot ers of the municipality on or af ter June 30, 1999, but 31
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before October 31, 2006, to pay costs of school construction, a dditions to schools, and 1
major rehabilitation projects and education-related facilities that exceed $200,000, are 2
reviewed under AS 14.07.020(a)(11), and are not reimbursed unde r (n) or (o) of this 3
section; 4
(15) subject to (h), (i), (j)(2) - (5), and (q) of this sectio n, and after 5
projects funded by the bonds, not es, or other indebtedness have been approved by the 6
commissioner, 90 percent of payme nts made by a municipality dur ing the fiscal year 7
for the retirement of principal and interest on outstanding bon ds, notes, or other 8
indebtedness authorized by the qualified voters of the municipality on or after June 30, 9
1999, but before October 31, 2006, to pay costs of school const ruction, additions to 10
schools, and major rehabilitation projects and education-relate d facilities that exceed 11
$200,000, are approved under AS 14.07.020(a)(11), meet the 10 p ercent participating 12
share requirement for a municipa l school district under the for mer participating share 13
amounts required under AS 14.11.008(b) , and are not reimbursed under (n) or (o) of 14
this section; 15
(16) subject to (h), (i), and (j )(2) - (5) of this section, an d after projects 16
funded by the tax exempt bonds, notes, or other indebtedness ha ve been approved by 17
the commissioner, 70 percent of payments made by a municipality during the fiscal 18
year for the retirement of princ ipal and interest on outstandin g tax exempt bonds, 19
notes, or other indebtedness aut horized by the qualified voters of the municipality on 20
or after October 1, 2006, but before January 1, 2015, to pay co sts of school 21
construction, additions to school s, and major rehabilitation pr ojects and education- 22
related facilities that exceed $200,000, are approved under AS 14.07.020(a)(11), and 23
are not reimbursed under (o) of this section; 24
(17) subject to (h), (i), and (j)(2), (3), and (5) of this section, 60 percent 25
of payments made by a municipality during the fiscal year for t he retirement of 26
principal and interest on outstanding tax exempt bonds, notes, or other indebtedness 27
authorized by the qualified voters of the municipality on or af ter October 1, 2006, but 28
before January 1, 2015, to pay costs of school construction, ad ditions to schools, and 29
major rehabilitation projects and education-related facilities that exceed $200,000, are 30
reviewed under AS 14.07.020(a)(11), and are not reimbursed under (o) of this section; 31
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(18) subject to (h), (i), and (j )(2) - (5) of this section, an d after projects 1
funded by the tax exempt bonds, notes, or other indebtedness ha ve been approved by 2
the commissioner, 50 percent of payments made by a municipality during the fiscal 3
y ear for the retirement of principal of and interest on outstan ding tax exempt bonds, 4
notes, or other indebtedness aut horized by the qualified voters of the municipality on 5
or after July 1, 2027 [2025], to pay costs of school construction, additions to scho ols, 6
and major rehabilitation projects and education-related facilities that exceed $200,000, 7
are approved under AS 14.07.020(a)(11) , and are not reimbursed under (o) of this 8
section; 9
(19) subject to (h), (i), and (j)(2), (3), and (5) of this section, 40 percent 10
of payments made by a municipality during the fiscal year for t he retirement of 11
principal of and interest on outstanding tax exempt bonds, notes, or other indebtedness 12
authorized by the qualified voter s of the municipality on or af ter July 1, 2027 [2025], 13
to pay costs of school construction, additions to schools, and major rehabilitation 14
projects and education-rela ted facilities that exceed $200,000, are reviewed under 15
AS 14.07.020(a)(11), and are not reimbursed under (o) of this section. 16
* Sec. 3. AS 14.11.100(s) is amended to read: 17
(s) Notwithstanding any other provision of law, the commission er may not 18
approve an application for bond de bt reimbursement made by a mu nicipality for 19
school construction or major maintenance for indebtedness authorized by the qualified 20
voters of the municipality on or after January 1, 2015, but before July 1, 2027 [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 authorized by the qu alified voters of the 25
municipality on or after January 1, 2015, but before July 1, 2027 [2025]. 26
* Sec. 5. Section 6, ch. 3, SLA 2015, as amended by sec. 5, ch. 6, SLA 20 20, is amended to 27
read: 28
Sec. 6. AS 14.11.014(d), 14.11.100(s), and 14.11 .102(c) are repealed Ju ly 1, 29
2027 [2025]. 30
* Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 31
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read: 1
RETROACTIVITY. If this Act takes effect after July 1, 2025, this Act is retroactive to 2
July 1, 2025. 3
* Sec. 7. This Act takes effect immediately under AS 01.10.070(c). 4