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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 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
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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, 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
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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
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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
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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, 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
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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
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(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
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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