SB0184A -1- SB 184 New Text Underlined [DELETED TEXT BRACKETED] 34-LS0483\N 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 providing for an effective 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 application for bond debt reimbursement made by a 6 municipality for school construction or major maintenance for indebtedness authorized 7 by the qualified voters of the municipality 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 municipality 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 34-LS0483\N SB 184 -2- SB0184A New Text Underlined [DELETED TEXT BRACKETED] 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, 1977, 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 earlier 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, 1978, and before 13 January 1, 1982, to pay costs of school construction projects approved 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 earlier 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 outstanding 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 earlier to pay costs 27 of school construction, additions to schools, and major rehabilitation 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 outstanding bonds, 31 34-LS0483\N SB0184A -3- SB 184 New Text Underlined [DELETED TEXT BRACKETED] notes, or other indebtedness to pay costs of school construction, additions to 1 schools, and major rehabilitation 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 municipality 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 municipality is more 6 than seven percent but less than 12 percent, or (ii) $20,000,000 if the annual 7 growth rate of average daily membership of the municipality is 12 percent or 8 more; payments made by a municipality under this subparagraph on 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 bonds, 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 major 17 rehabilitation projects that exceed $25,000 and are approved under 18 AS 14.07.020(a)(11); or 19 (ii) before July 1, 1989, and reauthorized before 20 November 1, 1989, to pay costs of school construction, additions to 21 schools, and major rehabilitation 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 costs 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 of payments 29 made by the municipality during the fiscal year for the retirement of principal and 30 interest on outstanding bonds, notes, or other indebtedness authorized by the qualified 31 34-LS0483\N SB 184 -4- SB0184A New Text Underlined [DELETED TEXT BRACKETED] voters of the municipality on or after April 30, 1993, but before July 1, 1996, to pay 1 costs of school construction, additions to schools, and major rehabilitation 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 of payments 4 made by the municipality during the fiscal year for the retirement of principal and 5 interest on outstanding bonds, notes, or other indebtedness authorized by the qualified 6 voters of the municipality after March 31, 1990, but before April 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, notes, 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 bonds, notes, or other 12 indebtedness authorized by the qualified voters of the municipality on or after July 1, 13 1995, but before July 1, 1998, to pay costs of school construction, 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, notes, 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 bonds, notes, or other 20 indebtedness authorized by the qualified voters of the municipality on or after July 1, 21 1998, but before July 1, 2006, to pay costs of school construction, 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 section, and after 25 projects funded by the bonds, notes, 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 bonds, 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 under AS 14.07.020(a)(11), 31 34-LS0483\N SB0184A -5- SB 184 New Text Underlined [DELETED TEXT BRACKETED] and are not reimbursed under (n) of this section; 1 (11) subject to (h), (i), and (j)(2) - (5) of this section, and after projects 2 funded by the bonds, notes, or other indebtedness have been approved by the 3 commissioner, 70 percent of payments made by a municipality during the fiscal year 4 for the retirement of principal and interest on outstanding bonds, 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 construction, additions to 7 schools, and major rehabilitation projects and education-related facilities that exceed 8 $200,000, are approved under AS 14.07.020(a)(11), and are not reimbursed 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 the 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 exceed $200,000, are 16 reviewed under AS 14.07.020(a)(11), and are not reimbursed under (n) or (o) of this 17 section; 18 (13) subject to (h), (i), (j)(2) - (5), and (p) of this section, and after 19 projects funded by the tax exempt bonds, notes, or other indebtedness 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 indebtedness 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 to schools, and major rehabilitation 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 this section, 60 28 percent of payments made by a municipality during the fiscal year for the retirement 29 of principal and interest on outstanding tax exempt bonds, notes, or other indebtedness 30 authorized by the qualified voters of the municipality on or after June 30, 1999, but 31 34-LS0483\N SB 184 -6- SB0184A New Text Underlined [DELETED TEXT BRACKETED] before October 31, 2006, 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 (n) or (o) of this 3 section; 4 (15) subject to (h), (i), (j)(2) - (5), and (q) of this section, and after 5 projects funded by the bonds, notes, or other indebtedness have been approved by the 6 commissioner, 90 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 October 31, 2006, 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), meet the 10 percent participating 12 share requirement for a municipal school district under the former 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, and after projects 16 funded by the tax exempt bonds, notes, or other indebtedness have been approved by 17 the commissioner, 70 percent of payments made by a municipality during the fiscal 18 year for the retirement of principal and interest on outstanding tax exempt bonds, 19 notes, or other indebtedness authorized by the qualified voters of the municipality on 20 or after October 1, 2006, but before January 1, 2015, to pay costs of school 21 construction, additions to schools, and major rehabilitation projects 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 the 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 after October 1, 2006, but 28 before January 1, 2015, to pay costs of school construction, additions 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 34-LS0483\N SB0184A -7- SB 184 New Text Underlined [DELETED TEXT BRACKETED] (18) subject to (h), (i), and (j)(2) - (5) of this section, and after projects 1 funded by the tax exempt bonds, notes, or other indebtedness have been approved by 2 the commissioner, 50 percent of payments made by a municipality during the fiscal 3 year for the retirement of principal of and interest on outstanding tax exempt bonds, 4 notes, or other indebtedness authorized by the qualified voters of the municipality on 5 or after July 1, 2027 [2025], to pay costs of school construction, additions to schools, 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 the retirement of 11 principal of and interest on outstanding tax exempt bonds, notes, or other indebtedness 12 authorized by the qualified voters of the municipality on or after July 1, 2027 [2025], 13 to pay costs of school construction, additions to schools, and major rehabilitation 14 projects and education-related 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 commissioner may not 18 approve an application for bond debt reimbursement made by a municipality 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 interest on outstanding tax- 24 exempt bonds, notes, or other indebtedness authorized by the qualified 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 2020, is amended to 27 read: 28 Sec. 6. AS 14.11.014(d), 14.11.100(s), and 14.11.102(c) are repealed July 1, 29 2027 [2025]. 30 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 31 34-LS0483\N SB 184 -8- SB0184A New Text Underlined [DELETED TEXT BRACKETED] 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