HB0076a -1- HB 76 New Text Underlined [DELETED TEXT BRACKETED] 34-GH1082\A HOUSE BILL NO. 76 IN THE LEGISLATURE OF THE STATE OF ALASKA THIRTY-FOURTH LEGISLATURE - FIRST SESSION BY THE HOUSE RULES COMMITTEE BY REQUEST OF THE GOVERNOR Introduced: 1/31/25 Referred: Education, Finance A BILL FOR AN ACT ENTITLED "An Act relating to education; relating to public school attendance; relating to mobile 1 communication devices in schools; relating to reading proficiency incentive grants; 2 relating to authorization of charter schools; relating to transportation of students; 3 relating to school bond debt reimbursement; relating to funding and reporting by 4 Alaska technical and vocational education programs; authorizing lump sum payments 5 for certain teachers as retention and recruitment incentives; and providing for an 6 effective date." 7 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 8 * Section 1. AS 14.03.080(a) is amended to read: 9 (a) Subject to AS 14.14.110 and 14.14.120, a [A] child of school age is 10 entitled to attend public school without payment of tuition during the school term 11 (1) in the school district in which the child is a resident; and 12 (2) except as provided in (i) of this section, upon application to a 13 34-GH1082\A HB 76 -2- HB0076a New Text Underlined [DELETED TEXT BRACKETED] school district, at a school selected by the child's parent in or outside the school 1 district in which the child is a resident subject to 2 (A) capacity limitations of the selected school; 3 (B) a school district enrollment preference policy that 4 prioritizes 5 (i) placement of siblings in the same school; and 6 (ii) enrollment of children in the order of 7 applications received; and 8 (C) regulations that the department shall adopt to 9 (i) require a school district to accept students upon 10 application throughout the school year as capacity becomes 11 available; 12 (ii) require a school district to report to the 13 department and publish on the school district's Internet website 14 annually student enrollment data at each school, including capacity 15 and vacancies for each grade; the number of applications, 16 acceptances, and denials; and the reasons for any denial; 17 (iii) compensate a school district at the end of a 18 school year to account for a year-end ADM that is greater than the 19 district's student count data provided under AS 14.17.600; 20 (iv) establish a student transportation plan; and 21 (v) establish a procedure for appealing a school 22 district's denial of an enrollment application [SUBJECT TO THE 23 PROVISIONS OF AS 14.14.110 AND 14.14.120]. 24 * Sec. 2. AS 14.03.080 is amended by adding a new subsection to read: 25 (i) Nothing in (a)(2) of this section applies to a correspondence study program 26 under AS 14.03.300. 27 * Sec. 3. AS 14.03 is amended by adding a new section to read: 28 Sec. 14.03.103. Mobile communication devices in schools. (a) The governing 29 body of a school district shall adopt a policy to prohibit a student from using a 30 personal mobile communication device in school under the supervision of an 31 34-GH1082\A HB0076a -3- HB 76 New Text Underlined [DELETED TEXT BRACKETED] employee of the school district except 1 (1) in the event of an emergency or a perceived threat of danger; 2 (2) when a teacher or administrator of the school grants permission to 3 the student to use the device for educational purposes; 4 (3) when use of the device is necessary for the health or well-being of 5 the student; or 6 (4) when use of the device is a required component of the student's 7 individualized education plan. 8 (b) This section does not authorize monitoring, collecting, or accessing 9 information related to a student's use of a personal mobile communication device. 10 (c) In this section, "mobile communication device" means a cellular telephone, 11 smart phone, personal data assistant, wireless tablet, computer, or a similar device 12 used for voice or visual communication. 13 * Sec. 4. AS 14.03 is amended by adding a new section to read: 14 Sec. 14.03.124. Reading proficiency incentive grants. (a) Subject to 15 appropriation, a school district is eligible to receive a reading proficiency incentive 16 grant of $450 for each student in 17 (1) grade kindergarten through three who performs at grade-level or 18 demonstrates improvement on expected grade-level skills on the statewide screening 19 tool adopted by the department under AS 14.30.760; and 20 (2) grade four through six who performs at grade-level or demonstrates 21 a measure of increased proficiency on a standards-based assessment in language arts. 22 (b) The department shall adopt regulations to implement this section. 23 * Sec. 5. AS 14.03.124(a), added by sec. 4 of this Act, is amended to read: 24 (a) Subject to appropriation, a school district is eligible to receive a reading 25 proficiency incentive grant of $450 for each student in 26 [(1)] grade kindergarten through [THREE WHO PERFORMS AT 27 GRADE-LEVEL OR DEMONSTRATES IMPROVEMENT ON EXPECTED 28 GRADE-LEVEL SKILLS ON THE STATEWIDE SCREENING TOOL ADOPTED 29 BY THE DEPARTMENT UNDER AS 14.30.760; AND 30 (2) GRADE FOUR THROUGH] six who performs at grade-level or 31 34-GH1082\A HB 76 -4- HB0076a New Text Underlined [DELETED TEXT BRACKETED] demonstrates a measure of increased proficiency on a standards-based assessment in 1 language arts. 2 * Sec. 6. AS 14.03 is amended by adding a new section to read: 3 Sec. 14.03.254. Application for charter school to the board. (a) The state 4 Board of Education and Early Development shall prescribe by regulation a procedure 5 for the establishment of a charter school in any school district in the state by 6 application to the state board. 7 (b) The state Board of Education and Early Development shall issue a written 8 decision on an application for a charter school within 90 days after acceptance of the 9 application. If the state board approves a charter school application, the local school 10 board shall operate the charter school as provided in AS 14.03.255 - 14.03.290. 11 * Sec. 7. AS 14.07.170(a) is amended to read: 12 (a) The board may 13 (1) appoint unpaid advisory commissions; 14 (2) require school boards or school personnel to submit to the 15 department, in the form the board may require, the district budget or any information 16 or reports that are reasonably necessary to assist the department in carrying out its 17 functions; 18 (3) authorize the establishment of a charter school to operate as 19 provided in AS 14.03.255 - 14.03.290 in any school district in the state; the board 20 may delegate the authority to authorize establishment of a charter school to a 21 board committee, political subdivision of the state, or state agency, including the 22 University of Alaska; delegation under this paragraph is limited to approving or 23 denying an application for a charter school and is subject to the review and 24 appeal processes applicable to a local school board under AS 14.03.250 and 25 14.03.253. 26 * Sec. 8. AS 14.09.010(a) is repealed and reenacted to read: 27 (a) A school district that provides student transportation services for the 28 transportation of students who reside a distance from established schools is eligible to 29 receive funding for operating or subcontracting the operation of the transportation 30 system for students to and from the schools within the student's transportation service 31 34-GH1082\A HB0076a -5- HB 76 New Text Underlined [DELETED TEXT BRACKETED] area. Subject to appropriation, the amount of funding provided by the state for 1 operating the student transportation system is the amount of a school district's ADM, 2 less the ADM for the district's correspondence programs during the current fiscal year, 3 multiplied by the per student amount for the school district as follows, for the school 4 year beginning July 1, 2025: 5 DISTRICT PER STUDENT AMOUNT 6 Alaska Gateway $2,790 7 Aleutians East 416 8 Anchorage 584 9 Annette Island 244 10 Bering Strait 66 11 Bristol Bay 3,583 12 Chatham 376 13 Copper River 2,127 14 Cordova 450 15 Craig 567 16 Delta/Greely 2,221 17 Denali 2,423 18 Dillingham 1,632 19 Fairbanks 1,095 20 Galena 341 21 Haines 839 22 Hoonah 400 23 Iditarod 284 24 Juneau 809 25 Kake 364 26 Kashunamiut 7 27 Kenai Peninsula 1,227 28 Ketchikan 975 29 Klawock 783 30 Kodiak Island 1,071 31 34-GH1082\A HB 76 -6- HB0076a New Text Underlined [DELETED TEXT BRACKETED] Kuspuk 877 1 Lake and Peninsula 515 2 Lower Kuskokwim 372 3 Lower Yukon 1 4 Matanuska-Susitna 1,220 5 Nenana 788 6 Nome 833 7 North Slope 1,502 8 Northwest Arctic 33 9 Pelican 97 10 Petersburg 503 11 Saint Mary's 259 12 Sitka 574 13 Skagway 48 14 Southeast Island 1,549 15 Southwest Region 801 16 Unalaska 869 17 Valdez 987 18 Wrangell 939 19 Yakutat 998 20 Yukon Flats 354 21 Yukon/Koyukuk 419 22 Yupiit 2. 23 * Sec. 9. AS 14.11.014(d) is amended to read: 24 (d) Notwithstanding any other provision of law, the committee may not 25 recommend for approval an application for bond debt reimbursement made by a 26 municipality for school construction or major maintenance for indebtedness authorized 27 by the qualified voters of the municipality on or after January 1, 2015, but before 28 July 1, 2030 [2025]. 29 * Sec. 10. AS 14.11.100(a) is amended to read: 30 (a) During each fiscal year, the state shall allocate to a municipality that is a 31 34-GH1082\A HB0076a -7- HB 76 New Text Underlined [DELETED TEXT BRACKETED] school district the following sums: 1 (1) payments made by the municipality during the fiscal year two years 2 earlier for the retirement of principal and interest on outstanding bonds, notes, or other 3 indebtedness incurred before July 1, 1977, to pay costs of school construction; 4 (2) 90 percent of 5 (A) payments made by the municipality during the fiscal year 6 two years earlier for the retirement of principal and interest on outstanding 7 bonds, notes, or other indebtedness incurred after June 30, 1977, and before 8 July 1, 1978, to pay costs of school construction; 9 (B) cash payments made after June 30, 1976, and before July 1, 10 1978, by the municipality during the fiscal year two years earlier to pay costs 11 of school construction; 12 (3) 90 percent of 13 (A) payments made by the municipality during the fiscal year 14 two years earlier for the retirement of principal and interest on outstanding 15 bonds, notes, or other indebtedness incurred after June 30, 1978, and before 16 January 1, 1982, to pay costs of school construction projects approved under 17 AS 14.07.020(a)(11); 18 (B) cash payments made after June 30, 1978, and before July 1, 19 1982, by the municipality during the fiscal year two years earlier to pay costs 20 of school construction projects approved under AS 14.07.020(a)(11); 21 (4) subject to (h) and (i) of this section, up to 90 percent of 22 (A) 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 incurred after December 31, 1981, and authorized 25 by the qualified voters of the municipality before July 1, 1983, to pay costs of 26 school construction, additions to schools, and major rehabilitation projects that 27 exceed $25,000 and are approved under AS 14.07.020(a)(11); 28 (B) cash payments made after June 30, 1982, and before July 1, 29 1983, by the municipality during the fiscal year two years earlier to pay costs 30 of school construction, additions to schools, and major rehabilitation projects 31 34-GH1082\A HB 76 -8- HB0076a New Text Underlined [DELETED TEXT BRACKETED] that exceed $25,000 and are approved under AS 14.07.020(a)(11); and 1 (C) payments made by the municipality during the current 2 fiscal year for the retirement of principal and interest on outstanding bonds, 3 notes, or other indebtedness to pay costs of school construction, additions to 4 schools, and major rehabilitation projects that exceed $25,000 and are 5 submitted to the department for approval under AS 14.07.020(a)(11) before 6 July 1, 1983, and approved by the qualified voters of the municipality before 7 October 15, 1983, not to exceed a total project cost of (i) $6,600,000 if the 8 annual growth rate of average daily membership of the municipality is more 9 than seven percent but less than 12 percent, or (ii) $20,000,000 if the annual 10 growth rate of average daily membership of the municipality is 12 percent or 11 more; payments made by a municipality under this subparagraph on total 12 project costs that exceed the amounts set out in (i) and (ii) of this subparagraph 13 are subject to (5)(A) of this subsection; 14 (5) subject to (h) - (j) of this section, 80 percent of 15 (A) payments made by the municipality during the fiscal year 16 for the retirement of principal and interest on outstanding bonds, notes, or 17 other indebtedness authorized by the qualified voters of the municipality 18 (i) after June 30, 1983, but before March 31, 1990, to 19 pay costs of school construction, additions to schools, and major 20 rehabilitation projects that exceed $25,000 and are approved under 21 AS 14.07.020(a)(11); or 22 (ii) before July 1, 1989, and reauthorized before 23 November 1, 1989, to pay costs of school construction, additions to 24 schools, and major rehabilitation projects that exceed $25,000 and are 25 approved under AS 14.07.020(a)(11); and 26 (B) cash payments made after June 30, 1983, by the 27 municipality during the fiscal year two years earlier to pay costs of school 28 construction, additions to schools, and major rehabilitation projects that exceed 29 $25,000 and are approved by the department before July 1, 1990, under 30 AS 14.07.020(a)(11); 31 34-GH1082\A HB0076a -9- HB 76 New Text Underlined [DELETED TEXT BRACKETED] (6) subject to (h) - (j) and (m) of this section, 70 percent of payments 1 made by the municipality during the fiscal year for the retirement of principal and 2 interest on outstanding bonds, notes, or other indebtedness authorized by the qualified 3 voters of the municipality on or after April 30, 1993, but before July 1, 1996, to pay 4 costs of school construction, additions to schools, and major rehabilitation projects 5 that exceed $200,000 and are approved under AS 14.07.020(a)(11); 6 (7) subject to (h) - (j) and (m) of this section, 70 percent of payments 7 made by the municipality during the fiscal year for the retirement of principal and 8 interest on outstanding bonds, notes, or other indebtedness authorized by the qualified 9 voters of the municipality after March 31, 1990, but before April 30, 1993, to pay 10 costs of school construction, additions to schools, and major rehabilitation projects; 11 (8) subject to (h), (i), (j)(2) - (5), and (n) of this section and after 12 projects funded by the bonds, notes, or other indebtedness have been approved by the 13 commissioner, 70 percent of payments made by the municipality during the fiscal year 14 for the retirement of principal and interest on outstanding bonds, notes, or other 15 indebtedness authorized by the qualified voters of the municipality on or after July 1, 16 1995, but before July 1, 1998, to pay costs of school construction, additions to 17 schools, and major rehabilitation projects that exceed $200,000 and are approved 18 under AS 14.07.020(a)(11); 19 (9) subject to (h), (i), (j)(2) - (5), and (n) of this section and after 20 projects funded by the bonds, notes, or other indebtedness have been approved by the 21 commissioner, 70 percent of payments made by the municipality during the fiscal year 22 for the retirement of principal and interest on outstanding bonds, notes, or other 23 indebtedness authorized by the qualified voters of the municipality on or after July 1, 24 1998, but before July 1, 2006, to pay costs of school construction, additions to 25 schools, and major rehabilitation projects that exceed $200,000 and are approved 26 under AS 14.07.020(a)(11); 27 (10) subject to (h), (i), (j)(2) - (5), and (o) of this section, and after 28 projects funded by the bonds, notes, or other indebtedness have been approved by the 29 commissioner, 70 percent of payments made by the municipality during the fiscal year 30 for the retirement of principal and interest on outstanding bonds, notes, or other 31 34-GH1082\A HB 76 -10- HB0076a New Text Underlined [DELETED TEXT BRACKETED] indebtedness authorized by the qualified voters of the municipality on or after June 30, 1 1998, to pay costs of school construction, additions to schools, and major 2 rehabilitation projects that exceed $200,000, are approved under AS 14.07.020(a)(11), 3 and are not reimbursed under (n) of this section; 4 (11) subject to (h), (i), and (j)(2) - (5) of this section, and after projects 5 funded by the bonds, notes, or other indebtedness have been approved by the 6 commissioner, 70 percent of payments made by a municipality during the fiscal year 7 for the retirement of principal and interest on outstanding bonds, notes, or other 8 indebtedness authorized by the qualified voters of the municipality on or after June 30, 9 1999, but before January 1, 2005, to pay costs of school construction, additions to 10 schools, and major rehabilitation projects and education-related facilities that exceed 11 $200,000, are approved under AS 14.07.020(a)(11), and are not reimbursed under (n) 12 or (o) of this section; 13 (12) subject to (h), (i), and (j)(2), (3), and (5) of this section, 60 percent 14 of payments made by a municipality during the fiscal year for the retirement of 15 principal and interest on outstanding bonds, notes, or other indebtedness authorized by 16 the qualified voters of the municipality on or after June 30, 1999, but before January 1, 17 2005, to pay costs of school construction, additions to schools, and major 18 rehabilitation projects and education-related facilities that exceed $200,000, are 19 reviewed under AS 14.07.020(a)(11), and are not reimbursed under (n) or (o) of this 20 section; 21 (13) subject to (h), (i), (j)(2) - (5), and (p) of this section, and after 22 projects funded by the tax exempt bonds, notes, or other indebtedness have been 23 approved by the commissioner, 70 percent of payments made by a municipality during 24 the fiscal year for the retirement of principal and interest on outstanding tax exempt 25 bonds, notes, or other indebtedness authorized by the qualified voters of the 26 municipality on or after June 30, 1999, but before October 31, 2006, to pay costs of 27 school construction, additions to schools, and major rehabilitation projects and 28 education-related facilities that exceed $200,000, are approved under 29 AS 14.07.020(a)(11), and are not reimbursed under (n) or (o) of this section; 30 (14) subject to (h), (i), (j)(2), (3), and (5), and (p) of this section, 60 31 34-GH1082\A HB0076a -11- HB 76 New Text Underlined [DELETED TEXT BRACKETED] percent of payments made by a municipality during the fiscal year for the retirement 1 of principal and interest on outstanding tax exempt bonds, notes, or other indebtedness 2 authorized by the qualified voters of the municipality on or after June 30, 1999, but 3 before October 31, 2006, to pay costs of school construction, additions to schools, and 4 major rehabilitation projects and education-related facilities that exceed $200,000, are 5 reviewed under AS 14.07.020(a)(11), and are not reimbursed under (n) or (o) of this 6 section; 7 (15) subject to (h), (i), (j)(2) - (5), and (q) of this section, and after 8 projects funded by the bonds, notes, or other indebtedness have been approved by the 9 commissioner, 90 percent of payments made by a municipality during the fiscal year 10 for the retirement of principal and interest on outstanding bonds, notes, or other 11 indebtedness authorized by the qualified voters of the municipality on or after June 30, 12 1999, but before October 31, 2006, to pay costs of school construction, additions to 13 schools, and major rehabilitation projects and education-related facilities that exceed 14 $200,000, are approved under AS 14.07.020(a)(11), meet the 10 percent participating 15 share requirement for a municipal school district under the former participating share 16 amounts required under AS 14.11.008(b), and are not reimbursed under (n) or (o) of 17 this section; 18 (16) subject to (h), (i), and (j)(2) - (5) of this section, and after projects 19 funded by the tax exempt bonds, notes, or other indebtedness have been approved by 20 the commissioner, 70 percent of payments made by a municipality during the fiscal 21 year for the retirement of principal and interest on outstanding tax exempt bonds, 22 notes, or other indebtedness authorized by the qualified voters of the municipality on 23 or after October 1, 2006, but before January 1, 2015, to pay costs of school 24 construction, additions to schools, and major rehabilitation projects and education- 25 related facilities that exceed $200,000, are approved under AS 14.07.020(a)(11), and 26 are not reimbursed under (o) of this section; 27 (17) subject to (h), (i), and (j)(2), (3), and (5) of this section, 60 percent 28 of payments made by a municipality during the fiscal year for the retirement of 29 principal and interest on outstanding tax exempt bonds, notes, or other indebtedness 30 authorized by the qualified voters of the municipality on or after October 1, 2006, but 31 34-GH1082\A HB 76 -12- HB0076a New Text Underlined [DELETED TEXT BRACKETED] before January 1, 2015, to pay costs of school construction, additions 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 under (o) of this section; 3 (18) subject to (h), (i), and (j)(2) - (5) of this section, and after projects 4 funded by the tax exempt bonds, notes, or other indebtedness have been approved by 5 the commissioner, 50 percent of payments made by a municipality during the fiscal 6 year for the retirement of principal of and interest on outstanding tax exempt bonds, 7 notes, or other indebtedness authorized by the qualified voters of the municipality on 8 or after July 1, 2030 [2025], to pay costs of school construction, additions to schools, 9 and major rehabilitation projects and education-related facilities that exceed $200,000, 10 are approved under AS 14.07.020(a)(11), and are not reimbursed under (o) of this 11 section; 12 (19) subject to (h), (i), and (j)(2), (3), and (5) of this section, 40 percent 13 of payments made by a municipality during the fiscal year for the retirement of 14 principal of and interest on outstanding tax exempt bonds, notes, or other indebtedness 15 authorized by the qualified voters of the municipality on or after July 1, 2030 [2025], 16 to pay costs of school construction, additions to schools, and major rehabilitation 17 projects and education-related facilities that exceed $200,000, are reviewed under 18 AS 14.07.020(a)(11), and are not reimbursed under (o) of this section. 19 * Sec. 11. AS 14.11.100(s) is amended to read: 20 (s) Notwithstanding any other provision of law, the commissioner may not 21 approve an application for bond debt reimbursement made by a municipality for 22 school construction or major maintenance for indebtedness authorized by the qualified 23 voters of the municipality on or after January 1, 2015, but before July 1, 2030 [2025]. 24 * Sec. 12. AS 14.11.102(c) is amended to read: 25 (c) The commissioner may not allocate funds to a municipality under 26 AS 14.11.100 for the retirement of the principal of and interest on outstanding tax- 27 exempt bonds, notes, or other indebtedness authorized by the qualified voters of the 28 municipality on or after January 1, 2015, but before July 1, 2030 [2025]. 29 * Sec. 13. AS 14.16.200(b) is amended to read: 30 (b) Costs that may be claimed by a district for reimbursement under (a) of this 31 34-GH1082\A HB0076a -13- HB 76 New Text Underlined [DELETED TEXT BRACKETED] section are 1 (1) one round trip on the least expensive means of transportation 2 between the student's community of residence and the school during the school year if 3 the district expends money for the trip; and 4 (2) a per-pupil monthly stipend to cover room and board expenses as 5 determined by the department on a regional basis and not to exceed the following 6 amounts: 7 (A) for the Southeast Region (Region I), $1,845 [$1,230]; 8 (B) for the Southcentral Region (Region II), $1,800 [$1,200]; 9 (C) for the Interior Region (Region III), $2,178 [$1,452]; 10 (D) for the Southwest Region (Region IV), $2,264 [$1,509]; 11 (E) for the Northern Remote Region (Region V), $2,664 12 [$1,776]. 13 * Sec. 14. AS 14.17.410(b) is amended to read: 14 (b) Public school funding consists of state aid, a required local contribution, 15 and eligible federal impact aid determined as follows: 16 (1) state aid equals basic need minus a required local contribution and 17 90 percent of eligible federal impact aid for that fiscal year; basic need equals the sum 18 obtained under (D) of this paragraph, multiplied by the base student allocation set out 19 in AS 14.17.470; district adjusted ADM is calculated as follows: 20 (A) the ADM of each school in the district is calculated by 21 applying the school size factor to the student count as set out in AS 14.17.450; 22 (B) the number obtained under (A) of this paragraph is 23 multiplied by the district cost factor described in AS 14.17.460; 24 (C) the ADMs of each school in a district, as adjusted 25 according to (A) and (B) of this paragraph, are added to the number obtained 26 for correspondence study under AS 14.17.430; the sum is then multiplied by 27 the special needs factor set out in AS 14.17.420(a)(1) and the secondary school 28 vocational and technical instruction funding factor set out in 29 AS 14.17.420(a)(3); 30 (D) the number obtained for intensive services under 31 34-GH1082\A HB 76 -14- HB0076a New Text Underlined [DELETED TEXT BRACKETED] AS 14.17.420(a)(2) is [AND THE NUMBER OBTAINED FOR 1 CORRESPONDENCE STUDY UNDER AS 14.17.430 ARE] added to the 2 number obtained under (C) of this paragraph or under (H) and (I) of this 3 paragraph; 4 (E) notwithstanding (A) - (C) of this paragraph, if a school 5 district's ADM adjusted for school size under (A) of this paragraph decreases 6 by five percent or more from one fiscal year to the next fiscal year, the school 7 district may use the last fiscal year before the decrease as a base fiscal year to 8 offset the decrease, according to the following method: 9 (i) for the first fiscal year after the base fiscal year 10 determined under this subparagraph, the school district's ADM adjusted 11 for school size determined under (A) of this paragraph is calculated as 12 the district's ADM adjusted for school size, plus 75 percent of the 13 difference in the district's ADM adjusted for school size between the 14 base fiscal year and the first fiscal year after the base fiscal year; 15 (ii) for the second fiscal year after the base fiscal year 16 determined under this subparagraph, the school district's ADM adjusted 17 for school size determined under (A) of this paragraph is calculated as 18 the district's ADM adjusted for school size, plus 50 percent of the 19 difference in the district's ADM adjusted for school size between the 20 base fiscal year and the second fiscal year after the base fiscal year; 21 (iii) for the third fiscal year after the base fiscal year 22 determined under this subparagraph, the school district's ADM adjusted 23 for school size determined under (A) of this paragraph is calculated as 24 the district's ADM adjusted for school size, plus 25 percent of the 25 difference in the district's ADM adjusted for school size between the 26 base fiscal year and the third fiscal year after the base fiscal year; 27 (F) the method established in (E) of this paragraph is available 28 to a school district for the three fiscal years following the base fiscal year 29 determined under (E) of this paragraph only if the district's ADM adjusted for 30 school size determined under (A) of this paragraph for each fiscal year is less 31 34-GH1082\A HB0076a -15- HB 76 New Text Underlined [DELETED TEXT BRACKETED] than the district's ADM adjusted for school size in the base fiscal year; 1 (G) the method established in (E) of this paragraph does not 2 apply to a decrease in the district's ADM adjusted for school size resulting 3 from a loss of enrollment that occurs as a result of a boundary change under 4 AS 29; 5 (H) notwithstanding (A) - (C) of this paragraph, if one or more 6 schools close and consolidate with one or more other schools in the same 7 community and district and, as a result of the consolidation, basic need 8 generated by the district's ADM of the consolidated schools as adjusted under 9 (A) - (C) of this paragraph decreases, the district may use the last fiscal year 10 before the consolidation as the base fiscal year to offset that decrease for the 11 first four fiscal years following consolidation according to the following 12 method: 13 (i) for the first two fiscal years 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 district's ADM of 20 the consolidated schools for the current fiscal year as adjusted under 21 (A) - (C) of this paragraph by the sum of the district's ADM of the 22 consolidated schools for the current fiscal year without adjustment, 23 multiplying that number by the sum of the district's ADM of the 24 consolidated schools for the current fiscal year without adjustment, and 25 adding that number to the sum of the district's ADM of the consolidated 26 schools for the current fiscal year as adjusted under (A) - (C) of this 27 paragraph; 28 (ii) for the third fiscal year after the base fiscal year, the 29 district's ADM of the consolidated schools as adjusted under (A) - (C) 30 of this paragraph is calculated by dividing the sum of the district's 31 34-GH1082\A HB 76 -16- HB0076a New Text Underlined [DELETED TEXT BRACKETED] ADM of the consolidated schools as adjusted under (A) - (C) of this 1 paragraph for the base fiscal year by the sum of the district's ADM of 2 the consolidated schools for the base fiscal year without adjustment, 3 and subtracting the quotient obtained by dividing the sum of the 4 district's ADM of the consolidated schools for the current fiscal year as 5 adjusted under (A) - (C) of this paragraph by the sum of the district's 6 ADM of the consolidated schools for the current fiscal year, 7 multiplying that number by the sum of the district's ADM of the 8 consolidated schools for the current fiscal year without adjustment, 9 multiplying that number by 66 percent, and adding that number to the 10 sum of the district's ADM of the consolidated schools for the current 11 fiscal year as adjusted under (A) - (C) of this paragraph; 12 (iii) for the fourth fiscal year after the base fiscal year, 13 the district's ADM of the consolidated schools as adjusted under (A) - 14 (C) of this paragraph is calculated by dividing the sum of the district's 15 ADM of the consolidated schools as adjusted under (A) - (C) of this 16 paragraph for the base fiscal year by the sum of the district's ADM of 17 the consolidated schools for the base fiscal year without adjustment, 18 and subtracting the quotient obtained by dividing the sum of the 19 district's ADM of the consolidated schools for the current fiscal year as 20 adjusted under (A) - (C) of this paragraph by the sum of the district's 21 ADM of the consolidated schools for the current fiscal year, 22 multiplying that number 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 33 percent, and adding that number to the 25 sum of the district's ADM of the consolidated schools for the current 26 fiscal year as adjusted under (A) - (C) of this paragraph; 27 (iv) to calculate the district's basic need for each fiscal 28 year, the number obtained through the calculation in (i), (ii), or (iii) of 29 this subparagraph is added to the number obtained under (C) of this 30 paragraph for the remainder of the district; 31 34-GH1082\A HB0076a -17- HB 76 New Text Underlined [DELETED TEXT BRACKETED] (I) if the basic need calculated under (H)(i) - (iii) of this 1 paragraph for one of the first four fiscal years after consolidation is less than 2 the basic need calculated under (A) - (C) of this paragraph for that fiscal year, 3 the basic need may not be adjusted under (H) of this paragraph for that fiscal 4 year; 5 (J) a district may not offset a decrease under (H) of this 6 paragraph if 7 (i) a new facility is constructed in the district for the 8 consolidation; or 9 (ii) the district offset a decrease under (E) of this 10 paragraph in the same fiscal year; 11 (K) a district that offsets a decrease under (H) of this paragraph 12 may not reopen a school that was closed for consolidation in the district until 13 (i) seven or more years have passed since the school 14 closure; and 15 (ii) the district provides evidence satisfactory to the 16 department that the schools affected by the consolidation are over 17 capacity; 18 (L) a district may not reopen and reconsolidate a school that 19 was consolidated in the district more than once every seven years for purposes 20 of the calculations made under (H) of this paragraph; 21 (M) a district offsetting a decrease under (H) of this paragraph 22 shall provide the department with the list of schools participating in the 23 consolidation and the corresponding ADM; 24 (2) the required local contribution of a city or borough school district is 25 the equivalent of a 2.65 mill tax levy on the full and true value of the taxable real and 26 personal property in the district as of January 1 of the second preceding fiscal year, as 27 determined by the Department of Commerce, Community, and Economic 28 Development under AS 14.17.510 and AS 29.45.110, not to exceed 45 percent of a 29 district's basic need for the preceding fiscal year as determined under (1) of this 30 subsection. 31 34-GH1082\A HB 76 -18- HB0076a New Text Underlined [DELETED TEXT BRACKETED] * Sec. 15. AS 14.17.420(a) is amended to read: 1 (a) As a component of public school funding, a district is eligible for special 2 needs and secondary school vocational and technical instruction funding and may be 3 eligible for intensive services funding as follows: 4 (1) special needs funding is available to a district to assist the district 5 in providing special education, gifted and talented education, vocational education, 6 and bilingual education services to its students; a special needs funding factor of 1.20 7 shall be applied as set out in AS 14.17.410(b)(1); 8 (2) in addition to the special needs funding for which a district is 9 eligible under (1) of this subsection, a district is eligible for intensive services funding 10 for each special education student who needs and receives intensive services and is 11 enrolled on the last day of the count period; for each such student, intensive services 12 funding is equal to the intensive student count multiplied by 13; 13 (3) in addition to the special needs and intensive services funding 14 available under (1) and (2) of this subsection, secondary school vocational and 15 technical instruction funding is available to assist districts in providing vocational and 16 technical instruction to students who are enrolled in a secondary school; a secondary 17 school vocational and technical instruction funding factor of 1.04 [1.015] shall be 18 applied as set out in AS 14.17.410(b)(1); in this paragraph, "vocational and technical 19 instruction" excludes costs associated with 20 (A) administrative expenses; and 21 (B) instruction in general literacy, mathematics, and job 22 readiness skills. 23 * Sec. 16. AS 14.17.420 is amended by adding a new subsection to read: 24 (d) If a district offers secondary school vocational and technical instruction, in 25 order to receive funding under (a)(3) of this section, the district must file with the 26 department a program plan that indicates how the district's implementation of the 27 program will improve student achievement. A district that receives funding under 28 (a)(3) of this section shall file an annual expenditures report indicating how the funds 29 were used by the district in the prior year. 30 * Sec. 17. AS 14.17.430 is amended to read: 31 34-GH1082\A HB0076a -19- HB 76 New Text Underlined [DELETED TEXT BRACKETED] Sec. 14.17.430. State funding for correspondence study. Except as provided 1 in AS 14.17.400(b), funding for the state centralized correspondence study program or 2 a district correspondence program, including a district that offers a statewide 3 correspondence study program, includes an allocation from the public education fund 4 in an amount equal to the ADM of the correspondence program [CALCULATED 5 BY MULTIPLYING THE ADM OF THE CORRESPONDENCE PROGRAM BY 90 6 PERCENT]. 7 * Sec. 18. The uncodified law of the State of Alaska is amended by adding a new section to 8 read: 9 LUMP SUM PAYMENT FOR CERTAIN TEACHERS. (a) Subject to appropriation 10 for the fiscal years ending June 30, 2027, June 30, 2028, and June 30, 2029, a certificated full 11 time teacher occupying a position requiring teaching on a regular basis during the normal 12 work period for each day or week at a classroom teaching assignment in a public elementary 13 or secondary school, excluding a person teaching as an assistant or graduate assistant or 14 teaching on a substitute, temporary, or per diem basis, is entitled to receive a lump sum 15 payment as a retention and recruitment incentive on or within a reasonable period after July 1, 16 2026, July 1, 2027, and July 1, 2028, if the teacher was employed in a full-time classroom 17 teaching position for the entirety of the school term for the school year immediately preceding 18 the date of payment and complies with the application requirements of (c) of this section. The 19 Department of Education and Early Development shall reduce the retention and recruitment 20 incentive by the amount necessary to pay mandatory employee and employer deductions, 21 including a deduction required under AS 14.25. 22 (b) Subject to the application and certification requirements in (c) of this section, the 23 Department of Education and Early Development shall pay the retention and recruitment 24 incentive identified in (a) of this section as grants to school districts as follows: 25 (1) $5,000 for each eligible certificated full-time teacher teaching in the 26 following districts: 27 (A) Anchorage School District; 28 (B) Fairbanks North Star Borough School District; 29 (C) Juneau Borough School District; 30 (D) Kenai Peninsula Borough School District; 31 34-GH1082\A HB 76 -20- HB0076a New Text Underlined [DELETED TEXT BRACKETED] (E) Matanuska-Susitna Borough School District; 1 (2) $10,000 for each eligible certificated full-time teacher teaching in the 2 following districts: 3 (A) Alaska Gateway School District; 4 (B) Aleutian Region School District; 5 (C) Aleutians East Borough School District; 6 (D) Annette Island School District; 7 (E) Chugach School District; 8 (F) Copper River School District; 9 (G) Cordova City School District; 10 (H) Delta/Greely School District; 11 (I) Denali Borough School District; 12 (J) Galena City School District; 13 (K) Haines Borough School District; 14 (L) Ketchikan Gateway Borough School District; 15 (M) Kodiak Island Borough School District; 16 (N) Mount Edgecumbe; 17 (O) Nenana City School District; 18 (P) Nome Public Schools; 19 (Q) Petersburg Borough School District; 20 (R) Saint Mary's School District; 21 (S) Sitka School District; 22 (T) Skagway School District; 23 (U) Unalaska City School District; 24 (V) Valdez City School District; 25 (W) Wrangell Public School District; 26 (X) Yakutat School District; 27 (3) $15,000 for each eligible certificated full-time teacher teaching in the 28 following districts: 29 (A) Bering Strait School District; 30 (B) Bristol Bay Borough School District; 31 34-GH1082\A HB0076a -21- HB 76 New Text Underlined [DELETED TEXT BRACKETED] (C) Chatham School District; 1 (D) Craig City School District; 2 (E) Dillingham City School District; 3 (F) Hoonah City School District; 4 (G) Hydaburg City School District; 5 (H) Iditarod Area School District; 6 (I) Kake City School District; 7 (J) Kashunamiut School District; 8 (K) Klawock City School District; 9 (L) Kuspuk School District; 10 (M) Lake and Peninsula Borough School District; 11 (N) Lower Kuskokwim School District; 12 (O) Lower Yukon School District; 13 (P) North Slope Borough School District; 14 (Q) Northwest Arctic Borough School District; 15 (R) Pelican City School District; 16 (S) Pribilof School District; 17 (T) Southeast Island School District; 18 (U) Southwest Region School District; 19 (V) Yukon Flats School District; 20 (W) Yukon-Koyukuk School District; 21 (X) Yupiit School District. 22 (c) To be eligible for the retention and recruitment incentive identified in (a) of this 23 section, a certificated full-time teacher must apply during each eligible calendar year to the 24 Department of Education and Early Development on a date not later than the final day the 25 teacher's school is in session for the school term. The teacher shall apply for the payment 26 under this section on a form designated by the commissioner of education and early 27 development. For each teacher who applies, the school district or regional educational 28 attendance area shall certify the teacher's eligibility for payment under (a) of this section to 29 the Department of Education and Early Development. 30 (d) A payment made under this section is considered compensation for the purposes 31 34-GH1082\A HB 76 -22- HB0076a New Text Underlined [DELETED TEXT BRACKETED] of AS 14.25. 1 (e) The Department of Education and Early Development may adopt regulations 2 necessary to carry out the purposes of this section. 3 * Sec. 19. The uncodified law of the State of Alaska is amended by adding a new section to 4 read: 5 REPORT TO THE LEGISLATURE. (a) The house and senate education committees 6 shall jointly prepare a report to the legislature that provides 7 (1) recommendations for any change to public school foundation funding; 8 (2) a survey of each school district's curriculum, programs, and services and 9 an explanation of whether there is any duplication of the curriculum, programs, or services 10 within the district; 11 (3) a definition of "accountability" as that term applies to measuring school 12 and student performance; and 13 (4) recommended metrics for determining school and student performance 14 other than the standardized testing that is currently used. 15 (b) The house and senate education committees shall deliver a copy of the report to 16 the senate secretary and the chief clerk of the house of representatives, and notify the 17 legislature that the report is available, before the first day of the First Regular Session of the 18 Thirty-Fifth Alaska State Legislature. 19 * Sec. 20. The uncodified law of the State of Alaska is amended by adding a new section to 20 read: 21 TRANSITION: REGULATIONS. The Department of Education and Early 22 Development may proceed to adopt regulations to implement this Act. The regulations take 23 effect under AS 44.62 (Administrative Procedure Act) but not before the effective date of the 24 law implemented by the regulations. 25 * Sec. 21. Section 6, ch. 3, SLA 2015, as amended by sec. 5, ch. 6, SLA 2020, is amended 26 to read: 27 Sec. 6. AS 14.11.014(d), 14.11.100(s), and 14.11.102(c) are repealed July 1, 28 2030 [2025]. 29 * Sec. 22. Section 5 of this Act takes effect June 30, 2034. 30 * Sec. 23. Sections 9 - 12 and 21 of this Act take effect June 30, 2025. 31 34-GH1082\A HB0076a -23- HB 76 New Text Underlined [DELETED TEXT BRACKETED] * Sec. 24. Section 20 of this Act takes effect immediately under AS 01.10.070(c). 1 * Sec. 25. Sections 4, 8, and 13 - 19 of this Act take effect July 1, 2025. 2 * Sec. 26. Except as provided in secs. 22 - 25 of this Act, this Act takes effect July 1, 2026. 3