Title 14. Education, Libraries, and Museums.

Chapter 03. Public Schools Generally.

Article 1. General Provisions.


Sec. 14.03.010. Establishment of school system.
There is established in the state a system of public schools to be administered and maintained as provided in this title.


Sec. 14.03.015. State education policy.
It is the policy of this state that the purpose of education is to help ensure that all students will succeed in their education and work, shape worthwhile and satisfying lives for themselves, exemplify the best values of society, and be effective in improving the character and quality of the world about them.


Sec. 14.03.016. A parent’s right to direct the education of the parent’s child.
 (a) A local school board shall, in consultation with parents, teachers, and school administrators, adopt policies to promote the involvement of parents in the school district’s education program. The policies must include procedures
     (1) recognizing the authority of a parent and allowing a parent to object to and withdraw the child from a standards-based assessment or test required by the state;

     (2) recognizing the authority of a parent and allowing a parent to object to and withdraw the child from an activity, class, or program;

     (3) providing for parent notification not less than two weeks before any activity, class, or program that includes content involving human reproduction or sexual matters is provided to a child;

     (4) recognizing the authority of a parent and allowing a parent to withdraw the child from an activity, class, program, or standards-based assessment or test required by the state for a religious holiday, as defined by the parent;

     (5) providing a parent with an opportunity to review the content of an activity, class, performance standard, or program;

     (6) ensuring that, when a child is absent from an activity, class, program, or standards-based assessment or test required by the state under this section, the absence is not considered an unlawful absence under AS 14.30.020 if the child’s parent withdrew the child from the activity, class, program, or standards-based assessment or test or gave permission for the child’s absence.

 (b) The policies adopted under this section may not allow a parent categorically to object to or withdraw a child from all activities, classes, programs, or standards-based assessments or tests required by the state. The policies must require a parent to object each time the parent wishes to withdraw the child from an activity, class, program, or standards-based assessment or test required by the state.

 (c) Nothing in this section prohibits a school employee or volunteer from answering a question from a child about any topic.

 (d) In this section,
     (1) “child” means an unemancipated minor under 18 years of age;

     (2) “human reproduction or sexual matters” does not include curricula or materials for
          (A) sexual abuse and sexual assault awareness and prevention training required under AS 14.30.355; or

          (B) dating violence and abuse awareness and prevention training required under AS 14.30.356;

     (3) “local school board” has the meaning given in AS 14.03.290;

     (4) “parent” means the natural or adoptive parent of a child or a child’s legal guardian;

     (5) “school district” has the meaning given in AS 14.30.350.




Sec. 14.03.020. School year.
The school year begins on the first day of July and ends on the 30th day of June.


Sec. 14.03.030. School term.
A school term begins and ends on the dates fixed by the governing body of a school district. A school term shall include not less than 180 days in session unless, with the approval of the commissioner,
     (1) a day used for in-service training of teachers is substituted for a day in session, up to a maximum of 10 days;

     (2) an “emergency closure day” is substituted for a day in session because of conditions posing a threat to the health or safety of students; or

     (3) the school board adopts a different school term that includes at least 740 hours of instruction and study periods for pupils in kindergarten, first grade, second grade, and third grade and at least 900 hours of instruction and study periods for pupils in grades four through 12 if the commissioner finds that the school board has submitted an acceptable plan under which students will receive the approximate educational equivalent of a 180-day term.




Sec. 14.03.040. Day in session.
Each day within the school term is a day in session except Saturdays, Sundays, and days designated as holidays by or according to AS 14.03.050. A school board may approve Saturdays as a day in session. The day in session in every school shall be at least four hours long, exclusive of intermissions, for the first, second, and third grades and five hours, exclusive of intermissions, for all other grades. The commissioner may approve a shorter day in session for any grade. The period of the day in session shall be devoted to the instruction of pupils or to study periods for the pupils.


Sec. 14.03.050. School holidays.
 (a) Public schools may not be in session on school holidays, which are Labor Day, Thanksgiving Day, the day immediately following Thanksgiving Day, Christmas Day, New Years Day, Memorial Day, and the Fourth of July. If one of these holidays falls on a Saturday, the Friday immediately preceding is a school holiday. If one of these holidays falls on a Sunday, the Monday immediately following is a school holiday. A teacher may not be required to perform employment services on these holidays, nor may the salary of a teacher be diminished because the teacher does not perform employment services on a school holiday.

 (b) The public schools shall be in session on all other holidays falling upon school days and shall conduct appropriate exercises in recognition of the day.

 (c) The governing body of the school district may declare additional holidays.




Sec. 14.03.060. Elementary, junior high, and secondary schools.
 (a) Except as provided in (e) of this section, an elementary school consists of grades kindergarten through grade eight or any appropriate combination of grades within this range.

 (b) A secondary school consists of grades seven through 12 or any appropriate combination of grades within this range. The establishment of one or two grades beyond the 12th grade is optional with the governing body of the school district.

 (c) Grades seven through eight, nine, and ten or any appropriate combination of grades within this range may be organized as a junior high school.

 (d) This section does not prevent a high school from issuing a diploma to a student who has completed the 12th grade.

 (e) In addition to the grades enumerated in (a) of this section, an elementary school consists of a pre-elementary program supervised by the department under AS 14.07.020(a)(8), operated by the department as a head start program under AS 14.38.010, or located in a public school for federal funding purposes. Except for a child with a disability who is receiving special education or related services under AS 14.30.180 — 14.30.350, pre-elementary students may not be counted in a school’s average daily membership under AS 14.17.




Sec. 14.03.070. School age.
A child who is six years of age on or before September 1 following the beginning of the school year, and who is under the age of 20 and has not completed the 12th grade, is of school age.


Sec. 14.03.072. Early literacy information.
 (a) Each school district shall annually provide to parents and guardians of students enrolled in kindergarten through grade three in a public school in the state current information on the importance of early literacy, including
     (1) intervention strategies;

     (2) home literacy plans;

     (3) grade retention standards and policies for the elementary school attended;

     (4) strategies and resources to help children learn to read.

 (b) In partnership with local media outlets, the department shall create and implement a communications campaign to educate parents and guardians about the importance of early literacy. The campaign shall include an Internet website that provides access to current research on early literacy, book recommendations, and vocabulary-building exercises.




Sec. 14.03.073. Secondary school course credit.
 (a) A school district shall provide the opportunity for students enrolled in grades nine through 12 in the district to challenge one or more courses provided by the district by demonstrating mastery in mathematics, language arts, science, social studies, and world languages at the level of the course challenged. A school district shall give full credit for a course to a student who successfully challenges that course as provided under this section.

 (b) A school district shall establish, within a reasonable time, an assessment tool and a standard for demonstrating mastery in courses provided for students in grades nine through 12 by the district under this section. This section does not require a school district to establish an assessment tool for every course in mathematics, language arts, science, social studies, and world languages that is offered to students in grades nine through 12 by the district.

 (c) The board shall adopt regulations to implement this section.

 (d) In this section, “school district” has the meaning given in AS 14.30.350.




Sec. 14.03.075. College and career readiness assessment; retroactive issuance of diploma.
 (a) [Repealed, §§ 25, 29 ch 2 SSSLA 2015.]
 (b) [Repealed, §§ 25, 29 ch 2 SSSLA 2015.]
 (c) [Repealed, §§ 25, 29 ch 2 SSSLA 2015.]
 (d) At the request of a student, a school district shall issue a high school diploma to a student who did not receive a high school diploma because the student failed to pass all or a portion of the secondary school competency examination but who received a certificate of achievement under this section as it read before July 1, 2014.

 (e) In this section,
     (1) [Repealed, §§ 25, 29 ch 2 SSSLA 2015.]
     (2) “school district” has the meaning given in AS 14.30.350.




Sec. 14.03.077. High school diploma for certain veterans.
 (a) Notwithstanding other provisions of this chapter, the commissioner shall award a high school diploma to a person who
     (1) makes application under (b) of this section; if a person is deceased or incapacitated, an immediate family member may apply on behalf of the person;

     (2) never received a high school diploma; and

     (3) actively served in the United States armed forces or the Alaska Territorial Guard during the period of August 7, 1940, through July 25, 1947, and
          (A) died in active service;

          (B) was honorably discharged; or

          (C) was released from active duty because of a service-related disability.

 (b) The commissioner shall provide a form or electronic format for a person to apply under this section. The commissioner may accept an affidavit to support the award if documentation is not readily available from the military or other sources.




Sec. 14.03.078. Annual progress reports.
 (a) The department shall provide to the legislature by February 15 of each year by electronic means an annual report regarding the progress of each school and school district toward high academic performance by all students. The report required under this section must include
     (1) information described under AS 14.03.120(d);

     (2) progress of the department
          (A) toward implementing the school accountability provisions of AS 14.03.123; and

          (B) in assisting high schools to become accredited;

     (3) a description of the resources provided to each school and school district for coordinated school improvement activities and staff training in each school and school district;

     (4) each school district’s and each school’s progress in aligning curriculum with state education performance standards;

     (5) a description of the efforts by the department to assist a public school or district that receives a low performance designation under AS 14.03.123;

     (6) a description of intervention efforts by each school district and school for students who are not meeting state performance standards; and

     (7) the number and percentage of turnover in certificated personnel and superintendents.

 (b) By December 31 of each year, the department shall provide to the Alaska Mental Health Trust Authority established by AS 47.30.011 a report on the progress of school districts in the state toward the objective of AS 14.30.278(b), based on performance indicators included in the most current plan submitted by the state to the United States Secretary of Education as required under 20 U.S.C. 1412(a).




Sec. 14.03.080. Right to attend school.
 (a) A child of school age is entitled to attend public school without payment of tuition during the school term in the school district in which the child is a resident subject to the provisions of AS 14.14.110 and 14.14.120.

 (b) A person over school age may be admitted to the public school in the school district in which the person is a resident at the discretion of the governing body of the school district. A person over school age may be charged tuition by the governing body of the school district.

 (c) A child under school age may be admitted to a public school in the school district of which the child is a resident at the discretion of the governing body of the school district if the child meets minimum standards prescribed by the board evidencing that the child has the mental, physical, and emotional capacity to perform satisfactorily for the educational program being offered. A district’s educational program must prescribe that under school age students advance through the curriculum or grade level by the following school year. A governing body may delegate the authority granted under this subsection to the chief school administrator of the school district.

 (d) A child who is five years of age on or before September 1 following the beginning of the school year, and who is under school age, may enter a public school kindergarten.

 (e) A child under school age shall be admitted to school in the district of which the child is a resident if immediately before the child became a resident of the district, the child was legally enrolled in the public schools of another district or state.

 (f) This section does not require a school district to admit a child or person currently under suspension or expulsion under AS 14.03.160 in that or another school district.




Sec. 14.03.083. Contracting for services.
 (a) A school district may contract for educational services provided to students in the district by an agency that is accredited by the department under AS 14.07.020 and (b) of this section.

 (b) The department shall adopt regulations and establish program standards for educational services that may be contracted for by a school district.

 (c) Expenses incurred by the department in accrediting the agency and program shall be borne by the agency seeking accreditation.

 (d) The department and the state Board of Education and Early Development may not enter into or renew a contract or agreement, or participate, with any organization, entity, group, or consortium after July 1, 2014 that requires the state to cede any measure of autonomy or control over education standards and assessments, including the determination of passing scores.




Sec. 14.03.085. Procurement preference for recycled Alaska products.
A school district shall comply with AS 29.71.050, except that in AS 29.71.050(b), “AS 29.71.040” is read as “AS 36.15.050,” and in AS 29.71.050(a) — (c) and (e), “municipal” and “municipality” are read as “school district.” In this section, “school district” does not include regional educational attendance areas.


Sec. 14.03.090. Partisan, sectarian, or denominational doctrines prohibited.
Partisan, sectarian, or denominational doctrines may not be advocated in a public school during the hours the school is in session. A teacher or school board violating this section may not receive public money.


Sec. 14.03.095. Part-time school attendance.
 (a) Except as provided in (b) of this section, a governing body shall, upon request, allow a child, including a child who is also enrolled at a private school, is a correspondence student, or is being home schooled, to enroll as a part-time student in the district. A governing body may not discriminate between part-time and full-time students or require that part-time students be enrolled after full-time student enrollment is completed.

 (b) A governing body is not required to allow part-time enrollment if
     (1) the enrollment would be denied even if the enrollee were a full-time student; or

     (2) the enrollment would result in an expenditure of public funds for the direct benefit of a private educational institution.

 (c) Part-time enrollment under this section does not constitute attendance for the purposes of AS 14.30.010(a).

 (d) This section does not apply to interscholastic or extracurricular student activities.




Sec. 14.03.100. Use of school facilities.
The governing body of a school district may allow the use of school facilities for any legal gatherings or assemblies. The governing body shall adopt bylaws that will ensure reasonable and impartial use of the facilities.


Sec. 14.03.105. Search of school lockers.
 (a) Subject to (b) of this section, a locker or other container provided in a school by the school or the school district may be searched and examined with the permission of the chief administrative officer of the school or the school district or the designee of the chief administrative officer to determine compliance with school regulations, school district regulations, and local, state, and federal laws. A search or examination under this section may not be more intrusive than reasonably necessary to meet the objectives of the search.

 (b) Notices in letters at least two inches high stating the right and the intention of school and school district officers to permit searches and examinations under (a) of this section shall be posted in prominent locations throughout a school.

 (c) Nothing in this section limits the ability of a peace officer, chief administrative officer, or other appropriate person, acting in compliance with local, state, or federal laws, to search a locker or other container provided in a public or private school by the school district.




Sec. 14.03.110. Questionnaires and surveys administered in public schools.

Sec. 14.03.113. District determination of scholarship eligibility.
A school district shall determine whether a student who graduates from a high school in the district is eligible for an award of an Alaska performance scholarship under AS 14.43.810 — 14.43.849. If a student is eligible, the district shall state in the student’s permanent record the highest level of funding for which the student is eligible. A district shall provide a student with an opportunity to request that the district correct an error in the eligibility determination.


Sec. 14.03.115. Access to school records by parent, foster parent, or guardian.
Upon request of a parent, foster parent, or guardian of a child under 18 years of age who is currently or was previously enrolled in a municipal school district or a school district that is a regional educational attendance area, the school district shall provide a copy of the child’s record. This section does not apply to
     (1) a record of a child who is an emancipated minor; or

     (2) record information that consists of the child’s address if the school district determines that the release of the child’s address poses a threat to the health or safety of the child.




Sec. 14.03.120. Education planning; reports.
 (a) A district shall annually file with the department, and make available to the public, a report that
     (1) establishes district goals and priorities for improving education in the district;

     (2) includes a plan for achieving district goals and priorities; and

     (3) includes a means of measuring the achievement of district goals and priorities.

 (b) The department shall summarize the reports submitted under (a) of this section and include all revenue received by each school district organized in easily sortable categories including ADM and district, as a statewide report, provide a copy to the governor, publish the report on the department’s Internet website, and notify the legislature that the report is available; in this subsection, “revenue” means all money reported to the department as receipts from any source, including state, federal, local, special, and other funding.

 (c) A district shall make efforts to encourage students, parents, teachers, and other members of the community to participate in the preparation of the report submitted under (a) of this section.

 (d) Annually, before the date set by the district under (e) of this section, each public school shall deliver to the department for posting on the department’s Internet website and provide, in a public meeting of parents, students, and community members, a report on the school’s performance and the performance of the school’s students. The report shall be prepared on a form prescribed by the department and must include
     (1) information on accreditation;

     (2) results of norm-referenced achievement tests;

     (3) results of state standards-based assessments in language arts and mathematics;

     (4) a description, including quantitative and qualitative measures, of student, parent, community, and business involvement in student learning;

     (5) a description of the school’s attendance, retention, dropout, and graduation rates as specified by the state board;

     (6) the annual percent of enrollment change, regardless of reason, and the annual percent of enrollment change due to student transfers into and out of the school district;

     (7) if Native language education is provided, a summary and evaluation of the curriculum described in AS 14.30.420;

     (8) the performance designation assigned the school under AS 14.03.123 and the methodology used to assign the performance designation, including the measures used and their relative weights;

     (9) other information concerning school performance and the performance of the school’s students as required by the state board in regulation; and

     (10) information on the number, attendance, and performance of students enrolled in the school whose parents or guardians are on active duty in the armed forces of the United States, the United States Coast Guard, the Alaska National Guard, the Alaska Naval Militia, or the Alaska State Defense Force.

 (e) By a date set by the district, each public school in the district shall provide the report described in (d) of this section to the district’s governing body. Along with the report, each public school shall submit a summary of comments made on the report by parents, students, and community members. By July 1 of each year, each district shall provide to the department a report on the performance of each public school and the public school students in the district. The district’s report must
     (1) be entitled “School District Report Card to the Public”; and

     (2) include
          (A) copies of the reports and summaries of comments submitted under this section by each public school in the district;

          (B) a compilation of the material described in (A) of this paragraph by each public school in the district;

          (C) the designation assigned the district under AS 14.03.123 and the methodology used to assign the performance designation, including the measures used and their relative weights; and

          (D) other information concerning school performance and the performance of the school’s students as required by the state board in regulation.

 (f) By January 15 of each year, the department shall provide to the governor and make available to the public and the legislature a report on the performance of public schools in this state. The report must be entitled “Alaska’s Public Schools: A Report Card to the Public.” The report must include
     (1) comprehensive information on each public school compiled, collected, and reported under (d) and (e) of this section for the prior school year;

     (2) a summary of the information described in (1) of this subsection; the summary must be prepared in a manner that allows school performance to be measured against established state education standards; and

     (3) the most recent performance designation under AS 14.03.123 received by each public school and by the state public school system.

 (g) In this section, “district” has the meaning given in AS 14.17.990.




Sec. 14.03.123. School and district accountability.
 (a) By September 1 of each year, the department shall assign a performance designation to each public school and school district and to the state public school system in accordance with (f) of this section.

 (b) The department shall inform the governing body of each district of the performance designations assigned to the district and to the state public school system under (a) of this section.

 (c) The state board shall adopt regulations implementing this section, providing for a statewide student assessment system, and providing for the process of assigning a designation under (a) of this section, including
     (1) the methodology used to assign the performance designation, including the measures used and their relative weights;

     (2) a comparison of the state public school system to public schools in other states, including a comparison of student participation in standards- based assessments and student performance on the assessments;

     (3) high performance and low performance designations that are based on the accountability system under this section;

     (4) a procedure for appealing a designation that may be used by the principal of a public school or by the superintendent of a public school district;

     (5) additional measures that may be progressively implemented by the commissioner to assist schools or districts to improve performance in accordance with this section; the additional measures may be unique to a certain school or district if that school or district receives federal funding that is not available to all schools or districts in the state.

 (d) A public school or district that receives a low performance designation under this section shall prepare and submit to the department a school or district improvement plan, as applicable, in accordance with regulations adopted by the board. The improvement plan must be prepared with the maximum feasible public participation of the community including, as appropriate, interested individuals, teachers, parents, parent organizations, students, tribal organizations, local government representatives, and other community groups. The improvement plan must, to the extent possible, include measures that increase local control of education and parental choice and that do not require a direct increase in state or federal funding for the school or district.

 (e) The department shall establish a program of special recognition for those public schools that receive a high performance designation, based on the accountability system under (f) of this section, that demonstrates
     (1) an improvement over the school’s performance designation for the previous year; or

     (2) maintenance of a proficient or high performance designation from the previous year.

 (f) In the accountability system for schools and districts required by this section, the department shall
     (1) implement state criteria and priorities for accountability including the use ofimplement state criteria and priorities for accountability including the use of
               (A) measures of student performance on standards-based assessments in language arts and mathematics; the assessments must be selected with the input of teachers and school administrators and minimize disruption to classroom instruction;

               (B) measures of student improvement and academic achievement; and

               (C) other measures identified that are indicators of student success and achievement; and

     (2) to the extent practicable, minimize the administrative burden on districts.

 (g) In this section,
     (1) “district” has the meaning given in AS 14.17.990;

     (2) “state public school system” means the combination of all public schools, public school districts, and state-operated schools.




Sec. 14.03.125. Fund for the improvement of school performance.
 (a) The fund for the improvement of school performance is created as an account in the general fund. The fund shall be used by the commissioner to make grants to a district located in the state for the purpose of improving school performance. The fund consists of money appropriated by the legislature. The commissioner shall annually determine the amount requested for grants under this section and shall include the amount in the department’s budget request.

 (b) A governing body, district advisory board, or nonprofit organization located in the state, or a teacher or principal employed by a public school in the state, may apply for a grant of up to $50,000 to improve school performance by submitting an application to the commissioner.

 (c) A grant may be awarded to the same grantee in consecutive fiscal years, but may not be awarded to the same grantee for more than two fiscal years within a five-year period.

 (d) Grant funds awarded under this section may only be expended to improve the performance of a public school.

 (e) In this section, “district” has the meaning given in AS 14.17.990.




Sec. 14.03.126. Public school performance incentive program. [Repealed, § 8 ch 41 SLA 2006.]
Sec. 14.03.127. Funding for Internet services.
 (a) Each fiscal year, a district in which one or more schools qualify for a discounted rate for Internet services under the federal universal services program is eligible to receive an amount for each school that is equal to the amount needed to bring the applicant’s share to 10 megabits of download a second of the Internet services.

 (b) If insufficient funding is appropriated to provide funding authorized under this section, the state share shall be distributed pro rata to eligible school districts.

 (c) In this section,
     (1) “applicant’s share” means the difference between the cost of Internet services that are eligible for the discount under the federal universal services program and the discount received for those services under the federal universal services program;

     (2) “federal universal services program” means the program established in 47 U.S.C. 254 and regulations implementing that section.




Sec. 14.03.130. Display of flags and pledge of allegiance.
 (a) United States and Alaska flags shall be displayed upon or near each principal school building during school hours and at other times the governing body considers proper. The governing body shall require that the pledge of allegiance be recited regularly, as determined by the governing body. A person may recite the following salute to the flag of the United States or maintain a respectful silence: “I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all.”

 (b) A school district shall inform all affected persons at the school of their right not to participate in the pledge of allegiance. The exercise of the right not to participate in the pledge of allegiance may not be used to evaluate a student or employee or for any other purpose.




Sec. 14.03.140. Emergency drills.
The principal or other persons in charge of each public or private school or educational institution shall instruct and train pupils by means of drills so that in an emergency they may be able to leave the school building in the shortest possible time without confusion or panic. Drills shall be held at least once each month during the school term, weather permitting.


Sec. 14.03.150. Property insurance required.
 (a) Each school district shall purchase and maintain or provide proof of adequate property insurance for the replacement cost of all school facilities and equipment. Insurance purchased to comply with this section may contain a deductible amount, if approved by the department. A school district may comply with this section by initiating and maintaining a program of self-insurance, if the department annually determines that the school district has submitted adequate evidence of the district’s ability to self-insure for the replacement cost of all school facilities and equipment. A copy of the insurance policy or other information indicating compliance with this section shall be provided to the department.

 (b) If the department determines that a school district is not insured as required under (a) of this section, the department shall notify the school district of the determination. Unless the school district obtains adequate insurance within 30 days after the school district receives notice under this subsection, the department shall purchase the insurance required by (a) of this section for that school district.

 (c) The department may not award a school construction or major maintenance grant under AS 14.11 to a municipality that is a school district or a regional educational attendance area that is not in compliance with (a) of this section. The department shall reduce the amount of state aid under AS 14.17.400 for which a school district may qualify by the amount, if any, paid by the department under (b) of this section.




Sec. 14.03.160. Suspension or expulsion of students for possessing weapons.
 (a) Notwithstanding any other provision of law, a school district shall
     (1) expel for at least one year a student who violates AS 11.61.210(a)(8) while possessing a firearm, as that term is defined under 18 U.S.C. 921;

     (2) suspend for at least 30 days, or expel for the school year or permanently, a student who violates AS 11.61.210(a)(8) while possessing a deadly weapon, other than a firearm as that term is defined under 18 U.S.C. 921.

 (b) The administrative officer of a school district may on a case-by-case basis reduce or otherwise modify the expulsion or suspension of a student under (a) of this section.

 (c) A prior conviction, or adjudication of delinquency or child in need of aid, for violation of AS 11.61.210(a)(8) is not necessary for a school board to suspend or expel a student under this section.

 (d) Each school district shall adopt a policy providing for the
     (1) referral to law enforcement authorities of students who violate AS 11.61.210(a)(8);

     (2) identification of procedures and conditions for early reinstatement of students suspended or expelled under this section.

 (e) Annually on a date set by the department, each school district shall report to the department the number of students expelled under this section and the types of weapons involved.

 (f) In this section,
     (1) “deadly weapon” has the meaning given in AS 11.81.900;

     (2) “district” has the meaning given in AS 14.17.990.




Article 2. Charter Schools.


Sec. 14.03.250. Application for charter school.
 (a) A local school board shall prescribe an application procedure for the establishment of a charter school in that school district. The application procedure must include provisions for an academic policy committee consisting of parents of students attending the school, teachers, and school employees and a proposed form for a contract between a charter school and the local school board, setting out the contract elements required under AS 14.03.255(c).

 (b) A decision of a local school board approving or denying an application for a charter school must be in writing, must be issued within 60 days after the application, and must include all relevant findings of fact and conclusions of law.

 (c) If a local school board approves an application for a charter school, the local school board shall forward the application to the state Board of Education and Early Development for review and approval.

 (d) If a local school board denies an application for a charter school, the applicant may appeal the denial to the commissioner. The appeal to the commissioner shall be filed not later than 60 days after the local school board issues its written decision of denial. The commissioner shall review the local school board’s decision to determine whether the findings of fact are supported by substantial evidence and whether the decision is contrary to law. A decision of the commissioner upholding the denial by the local school board may be appealed within 30 days to the state Board of Education and Early Development.

 (e) If the commissioner approves a charter school application, the commissioner shall forward the application to the state Board of Education and Early Development for review and approval. The application shall be forwarded not later than 30 days after the commissioner issues a written decision. The state Board of Education and Early Development shall exercise independent judgment in evaluating the application.

 (f) A local school board that denied an application for a charter school approved by the state board on appeal shall operate the charter school as provided in AS 14.03.255 — 14.03.290.




Sec. 14.03.253. Charter school application appeal.
 (a) In an appeal to the commissioner under AS 14.03.250, the commissioner shall review the record before the local school board. The commissioner may request written supplementation of the record from the applicant or the local school board. The commissioner may
     (1) remand the appeal to the local school board for further review;

     (2) approve the charter school application and forward the application to the state Board of Education and Early Development with or without added conditions; or

     (3) uphold the decision denying the charter school application; if the commissioner upholds a local school board’s decision to deny a charter school application and the applicant appeals to the State Board of Education and Early Development, the commissioner shall immediately forward the application and record to the state Board of Education and Early Development.

 (b) In an appeal to the state Board of Education and Early Development of a denial of a charter school application under (a)(3) of this section, the state board shall determine, based on the record, whether the commissioner’s findings are supported by substantial evidence and whether the decision is contrary to law. The state board shall issue a written decision within 90 days after an appeal.




Sec. 14.03.255. Organization and operation of a charter school.
 (a) A charter school operates as a school in the local school district except that the charter school (1) is exempt from the local school district’s textbook, program, curriculum, and scheduling requirements; (2) is exempt from AS 14.14.130(c); the principal of the charter school shall be selected by the academic policy committee and shall select, appoint, or otherwise supervise employees of the charter school; and (3) operates under the charter school’s annual program budget as set out in the contract between the local school board and the charter school under (c) of this section. A local school board may exempt a charter school from other local school district requirements if the exemption is set out in the contract. A charter school is subject to tests required by the department.

 (b) A charter school shall
     (1) keep financial records of the charter school;

     (2) oversee the operation of the charter school to ensure that the terms of the contract required by (c) of this section are being met;

     (3) meet regularly with parents and with teachers of the charter school to review, evaluate, and improve operations of the charter school; and

     (4) meet with the academic policy committee at least once each year to monitor progress in achieving the committee’s policies and goals.

 (c) A charter school shall operate under a contract between the charter school and the local school board. A contract must contain the following provisions:
     (1) a description of the educational program;

     (2) specific levels of achievement for the education program;

     (3) admission policies and procedures;

     (4) administrative policies;

     (5) a statement of the charter school’s funding allocation from the local school board and costs assignable to the charter school program budget;

     (6) the method by which the charter school will account for receipts and expenditures;

     (7) the location and description of the facility;

     (8) the name of the teacher, or teachers, who, by agreement between the charter school and the teacher, will teach in the charter school;

     (9) the teacher-to-student ratio;

     (10) the number of students served;

     (11) the term of the contract, not to exceed a term of 10 years;

     (12) a termination clause providing that the contract may be terminated by the local school board for the failure of the charter school to meet educational achievement goals or fiscal management standards, or for other good cause;

     (13) a statement that the charter school will comply with all state and federal requirements for receipt and use of public money;

     (14) other requirements or exemptions agreed upon by the charter school and the local school board.

 (d) A school district shall offer to a charter school the right of first refusal for a lease of space in an existing school district facility or in a facility within the school district that is not currently being used as a public school, if the chief school administrator determines the facility meets requirements for health and safety applicable to public buildings or other public schools in the district. If the school district requires lease payments by a charter school, the school district shall negotiate a lease agreement with the charter school for an amount that does not exceed the true operational costs calculated on a square foot basis for space leased under this subsection.




Sec. 14.03.260. Funding for charter school.
 (a) A local school board shall provide an approved charter school with an annual program budget. The budget shall be not less than the amount generated by the students enrolled in the charter school less administrative costs retained by the local school district, determined by applying the indirect cost rate approved by the department up to four percent. Costs directly related to charter school facilities, including rent, utilities, and maintenance, may not be included in an annual program budget for the purposes of calculating the four percent cap on administrative costs under this subsection. A local school board shall provide a charter school with a report itemizing the administrative costs retained by the local school board under this section. The “amount generated by students enrolled in the charter school” is to be determined in the same manner as it would be for a student enrolled in another public school in that school district and includes funds generated by grants, appropriations, federal impact aid, the required local contribution, the local contribution under AS 14.17.410(c), special needs under AS 14.17.420(a)(1), and secondary school vocational and technical instruction under AS 14.17.420(a)(3). A school district shall direct state aid under AS 14.11 for the construction or major maintenance of a charter school facility to the charter school that generated the state aid, subject to the same terms and conditions that apply to state aid under AS 14.11 for construction or major maintenance of a school facility that is not a charter school.

 (b) The program budget of a charter school is to be used for operating expenses of the educational program of the charter school, including purchasing textbooks, classroom materials, and instructional aids.

 (c) The charter school shall provide the financial and accounting information requested by the local school board or the Department of Education and Early Development and shall cooperate with the local school district or the department in complying with the requirements of AS 14.17.910.

 (d) The expenses of housing nonresident students who attend the charter school, including room, board, and other reasonable housing expenses, may not be paid for with state money but may be paid for with funds contributed by sources other than the state.




Sec. 14.03.263. Charter school grant program. [Repealed, § 1 ch 100 SLA 2003.]
Sec. 14.03.264. Charter school grant program.
 (a) A charter school that is established on or after the effective date of this section may receive a one-time grant from the department equal to the amount of $500 for each student enrolled in the school on October 1 of the first year in which the school applies for the grant. The charter school shall use a grant received under this section to provide educational services. In this subsection, “educational services” includes curriculum development, program development, and special education services.

 (b) The department shall establish by regulation procedures for the application for and expenditure of grant funds under (a) of this section.

 (c) If the amount appropriated in a fiscal year for the charter school grant program is insufficient to meet the amounts authorized under (a) of this section, the department shall reduce pro rata the per pupil grant amount by the necessary percentage as determined by the department. If a charter school grant is reduced under this subsection, the charter school may apply to the department in a subsequent fiscal year for the balance of the grant amount.




Sec. 14.03.265. Admission.
 (a) The program of a charter school may be designed to serve
     (1) students within an age group or grade level;

     (2) students who will benefit from a particular teaching method or curriculum; or

     (3) nonresident students, including providing domiciliary services for students who need those services, if approved by the board.

 (b) A charter school shall enroll all eligible students who submit a timely application, unless the number of those applications exceeds the capacity of the program, class, grade level, or building. In the event of an excess of those applications, the charter school and the local school board shall attempt to accommodate all of those applicants by considering providing additional classroom space and assigning additional teachers from the district to the charter school. If it is not possible to accommodate all eligible students who submit a timely application, students shall be accepted by random drawing. A school board may not require a student to attend a charter school.

 (c) In addition to other requirements of law, a charter school shall be nonsectarian.




Sec. 14.03.270. Teacher or employee transfers, evaluations, and negotiated agreements.
 (a) A teacher or employee may not be assigned to a charter school unless the teacher or employee consents to the assignment.

 (b) All provisions of an existing negotiated agreement or collective bargaining agreement applicable to a teacher or employee of a district apply to that teacher or employee if employed at a charter school in that district, unless the district and the bargaining unit representing the teacher or employee agree to an exemption.

 (c) A teacher in a charter school shall be evaluated in an equivalent manner as all other teachers in the district, except that if there is no administrator assigned to the charter school, the local school board, with the agreement of the charter school, shall designate a school district administrator in that district to evaluate a teacher in a charter school.




Sec. 14.03.275. Contracts; duration.
A contract for a charter school may be for a term of no more than 10 years.


Sec. 14.03.280. Regulations.
The state Board of Education and Early Development may adopt regulations under AS 44.62 (Administrative Procedure Act) necessary to implement AS 14.03.250 — 14.03.290.


Sec. 14.03.290. Definitions.
In AS 14.03.250 — 14.03.290,
     (1) “academic policy committee” means the group designated to supervise the academic operation of a charter school and to ensure the fulfillment of the mission of a charter school;

     (2) “charter school” means a school established under AS 14.03.250 — 14.03.290 that operates within a public school district;

     (3) “local school board” means a borough or city school board or a school board of a regional educational attendance area;

     (4) “parent” means a biological, adoptive, or foster parent, or an adult who acts as guardian of a child and makes decisions related to the child’s safety, education, and welfare;

     (5) “teacher” means a person who serves a school district in a teaching, counseling, or administrative capacity and is required to be certificated in order to hold the position.




Article 3. Correspondence Study Programs.


Sec. 14.03.300. Correspondence study programs; individual learning plans.
 (a) A district or the department that provides a correspondence study program shall annually provide an individual learning plan for each student enrolled in the program developed in collaboration with the student, the parent or guardian of the student, a certificated teacher assigned to the student, and other individuals involved in the student’s learning plan. An individual learning plan must
     (1) be developed with the assistance and approval of the certificated teacher assigned to the student by the district;

     (2) provide for a course of study for the appropriate grade level consistent with state and district standards;

     (3) provide for an ongoing assessment plan that includes statewide assessments required for public schools under AS 14.03.123(f);

     (4) include a provision for modification of the individual learning plan if the student is below proficient on a standardized assessment in a core subject;

     (5) provide for a signed agreement between the certificated teacher assigned to the student and at least one parent or the guardian of each student that verifies compliance with an individual learning plan;

     (6) provide for monitoring of each student’s work and progress by the certificated teacher assigned to the student.

 (b) Notwithstanding another provision of law, the department may not impose additional requirements, other than the requirements specified under (a) of this section and under AS 14.03.310, on a student who is proficient or advanced on statewide assessments required under AS 14.03.123(f).




Sec. 14.03.310. Student allotments.
 (a) Except as provided in (e) of this section, the department or a district that provides a correspondence study program may provide an annual student allotment to a parent or guardian of a student enrolled in the correspondence study program for the purpose of meeting instructional expenses for the student enrolled in the program as provided in this section.

 (b) A parent or guardian may purchase nonsectarian services and materials from a public, private, or religious organization with a student allotment provided under (a) of this section if
     (1) the services and materials are required for the course of study in the individual learning plan developed for the student under AS 14.03.300;

     (2) textbooks, services, and other curriculum materials and the course of study
          (A) are approved by the school district;

          (B) are appropriate for the student;

          (C) are aligned to state standards; and

          (D) comply with AS 14.03.090 and AS 14.18.060; and

     (3) the services and materials otherwise support a public purpose.

 (c) Except as provided in (d) of this section, an annual student allotment provided under this section is reserved and excluded from the unreserved portion of a district’s year-end fund balance in the school operating fund under AS 14.17.505.

 (d) The department or a district that provides for an annual student allotment under (a) of this section shall
     (1) account for the balance of an unexpended annual student allotment during the period in which a student continues to be enrolled in the correspondence program for which the annual allotment was provided;

     (2) return the unexpended balance of a student allotment to the budget of the department or district for a student who is no longer enrolled in the correspondence program for which the allotment was provided;

     (3) maintain a record of expenditures and allotments; and

     (4) implement a routine monitoring of audits and expenditures.

 (e) A student allotment provided under (a) of this section may not be used to pay for services provided to a student by a family member. In this subsection, “family member” means the student’s spouse, guardian, parent, stepparent, sibling, stepsibling, grandparent, stepgrandparent, child, uncle, or aunt.




Chapter 05. Public Schools Generally.

[Repealed, § 59 ch 98 SLA 1966.]

Article 1. Department of Education and Early Development.


Chapter 07. Administration of Public Schools.

Sec. 14.07.010. Department of Education and Early Development.
The Department of Education and Early Development includes the commissioner of education and early development, the state Board of Education and Early Development, and the staff necessary to carry out the functions of the department.


Sec. 14.07.020. Duties of the department.
 (a) The department shall
     (1) exercise general supervision over the public schools of the state except the University of Alaska;

     (2) study the conditions and needs of the public schools of the state, adopt or recommend plans, administer and evaluate grants to improve school performance awarded under AS 14.03.125, and adopt regulations for the improvement of the public schools; the department may consult with the University of Alaska to develop secondary education requirements to improve student achievement in college preparatory courses;

     (3) provide advisory and consultative services to all public school governing bodies and personnel;

     (4) prescribe by regulation a minimum course of study for the public schools; the regulations must provide that, if a course in American Sign Language is given, the course shall be given credit as a course in a foreign language;

     (5) establish, in coordination with the Department of Health and Social Services, a program for the continuing education of children who are held in detention facilities in the state during the period of detention;

     (6) accredit those public schools that meet accreditation standards prescribed by regulation by the department; these regulations shall be adopted by the department and presented to the legislature during the first 10 days of any regular session, and become effective 45 days after presentation or at the end of the session, whichever is earlier, unless disapproved by a resolution concurred in by a majority of the members of each house;

     (7) prescribe by regulation, after consultation with the state fire marshal and the state sanitarian, standards that will ensure healthful and safe conditions in the public and private schools of the state, including a requirement of physical examinations and immunizations in pre-elementary schools; the standards for private schools may not be more stringent than those for public schools;

     (8) exercise general supervision over pre-elementary schools that receive direct state or federal funding;

     (9) exercise general supervision over elementary and secondary correspondence study programs offered by municipal school districts or regional educational attendance areas; the department may also offer and make available to any Alaskan through a centralized office a correspondence study program;

     (10) accredit private schools that request accreditation and that meet accreditation standards prescribed by regulation by the department; nothing in this paragraph authorizes the department to require religious or other private schools to be licensed;

     (11) review plans for construction of new public elementary and secondary schools and for additions to and major rehabilitation of existing public elementary and secondary schools and, in accordance with regulations adopted by the department, determine and approve the extent of eligibility for state aid of a school construction or major maintenance project; for the purposes of this paragraph, “plans” include educational specifications, schematic designs, projected energy consumption and costs, and final contract documents;

     (12) provide educational opportunities in the areas of vocational education and training, and basic education to individuals over 16 years of age who are no longer attending school; the department may consult with businesses and labor unions to develop a program to prepare students for apprenticeships or internships that will lead to employment opportunities;

     (13) administer the grants awarded under AS 14.11;

     (14) establish, in coordination with the Department of Public Safety, a school bus driver training course;

     (15) require the reporting of information relating to school disciplinary and safety programs under AS 14.33.120 and of incidents of disruptive or violent behavior;

     (16) establish by regulation criteria, based on low student performance, under which the department may intervene in a school district to improve instructional practices, as described in AS 14.07.030(14) or (15); the regulations must include
          (A) a notice provision that alerts the district to the deficiencies and the instructional practice changes proposed by the department;

          (B) an end date for departmental intervention, as described in AS 14.07.030(14)(A) and (B) and (15), after the district demonstrates three consecutive years of improvement consisting of not less than two percent increases in student proficiency on standards-based assessments in language arts and mathematics, as provided in AS 14.03.123(f)(1)(A); and

          (C) a process for districts to petition the department for continuing or discontinuing the department’s intervention;

     (17) notify the legislative committees having jurisdiction over education before intervening in a school district under AS 14.07.030(14) or redirecting public school funding under AS 14.07.030(15).

 (b) In implementing its duties under (a)(2) of this section, the department may not expend any money to implement the set of educational curriculum standards for grades kindergarten through 12 established by the Common Core Standards Initiative and shall develop
     (1) performance standards in language arts and mathematics to be met at designated age levels by each student in public schools in the state; and

     (2) a comprehensive system of student assessments, composed of multiple indicators of proficiency in language arts and mathematics; this comprehensive system must
          (A) be made available to all districts and regional educational attendance areas;

          (B) include a developmental profile for students entering kindergarten or first grade; and

          (C) include performance standards in language arts and mathematics for students in age groups five through seven, eight through 10, and 11 — 14.

 (c) In this section, “pre-elementary school” means a school for children ages three through five years if the school’s primary function is educational.




Sec. 14.07.030. Powers of the department.
The department may
     (1) establish, maintain, govern, operate, discontinue, and combine area, regional, and special schools;

     (2) enter into contractual agreements with the Bureau of Indian Affairs or with a school district to share boarding costs of secondary school students;

     (3) provide for citizenship night schools when and where expedient;

     (4) provide for the sale or other disposition of abandoned or obsolete buildings and other state-owned school property;

     (5) prescribe a classification for items of expense of school districts;

     (6) acquire and transfer personal property, acquire real property, and transfer real property to federal agencies, state agencies, or to political subdivisions;

     (7) enter into contractual agreements with school districts to provide more efficient or economical education services; reasonable fees may be charged by the department to cover the costs of providing services under an agreement, including costs for professional services, reproduction or printing, and mailing and distribution of educational materials;

     (8) provide for the issuance of elementary and secondary diplomas to persons not in school who have completed the equivalent of an 8th or 12th grade education, respectively, in accordance with standards established by the department;

     (9) apply for, accept, and spend endowments, grants, and other private money available to the state for educational purposes in accordance with AS 37.07 (Executive Budget Act);

     (10) set student tuition and fees for educational and extracurricular programs and services provided and schools operated by the department under the provisions of (1) of this section and AS 14.07.020(a)(9), (11), and (12);

     (11) charge fees to cover the costs of care and handling with respect to the acquisition, warehousing, distribution, or transfer of donated foods;

     (12) establish and collect fees for the rental of school facilities and for other programs and services provided by the schools;

     (13) develop a model curriculum and provide technical assistance for early childhood education programs;

     (14) notwithstanding any other provision of this title, intervene in a school district to improve instructional practices under standards established by the department in regulation, including directing the
          (A) employees identified by the department to exercise supervisory authority for instructional practices in the district or in a specified school;

          (B) use of appropriations under this title for distribution to a district;

     (15) notwithstanding any other provision of this title, redirect public school funding under AS 14.17 appropriated for distribution to a school district, after providing notice to the district and an opportunity for the district to respond, when
          (A) necessary to contract for services to improve instructional practices in the district; or

          (B) the district has failed to take an action required by the department to improve instructional practices in the district; if funding is redirected under this subparagraph, the department shall provide the redirected funding to the district when the department has determined that the required action is satisfactorily completed.




Sec. 14.07.032. Definition for AS 14.07.020 — 14.07.032.
In AS 14.07.020 — 14.07.032, “instructional practices” means the strategies and methods used in teaching or delivering information, skills, material, and student learning management tools to a student to help the student achieve intended educational outcomes.


Sec. 14.07.035. Accounting and disposition of receipts. [Repealed, § 28 ch 90 SLA 1991.]
Sec. 14.07.040. Supplies and equipment for state-operated schools. [Repealed, § 34 ch 46 SLA 1970.]
Sec. 14.07.050. Selection of textbooks.
Textbooks for use in the public schools of the state, including a district offered statewide correspondence study program, shall be selected by district boards for district schools. Nothing in this section precludes a correspondence study student, or the parent or guardian of a correspondence study student, from privately obtaining or using textbooks or curriculum material not provided by the school district.


Sec. 14.07.052. State Textbook Commission. [Repealed, § 2 ch 96 SLA 1970.]
Secs. 14.07.053 — 14.07.054. [Renumbered as AS 14.07.058 — 14.07.059.]
Sec. 14.07.055. Expenses and per diem. [Repealed, § 19 ch 53 SLA 1973.]
Sec. 14.07.057. Transmittal of textbook selections.
A school board that selects its own books shall forward a list of the selections to the department.


Secs. 14.07.058 , 14.07.059. Alaska School Activities Association; activities fund. [Repealed, § 13, ch 43 SLA 1994.]
Sec. 14.07.060. Regulations.
The board shall adopt regulations that are necessary to carry out the provisions of this title. All regulations shall be adopted under AS 44.62 (Administrative Procedure Act).


Sec. 14.07.070. Withholding state funds.
State funds may not be paid to a school district or teacher that fails to comply with the school laws of the state or with the regulations adopted by the department.


Article 2. State Board of Education and Early Development.


Sec. 14.07.075. Creation.
There is created at the head of the Department of Education and Early Development a Board of Education and Early Development consisting of seven members.


Sec. 14.07.080. Creation and term of office. [Repealed, § 14 ch 96 1967.]
Sec. 14.07.085. Appointment of members.
 (a) The seven members of the board, no more than four of whom shall be members of the same political party as the governor, shall be appointed by the governor, subject to confirmation by a majority of the members of the legislature in joint session. In appointing board members, the governor shall consider recommendations made by recognized educational associations in the state.

 (b) One member shall be appointed from each of the four judicial districts and three from the state at large with at least one member representing regional educational attendance areas.

 (c) The members are entitled to the expenses, travel, and per diem allowances provided by law.

 (d) A member may act and receive compensation from the date of appointment until confirmation or rejection by the legislature.




Sec. 14.07.090. Appointment of members. [Repealed, § 14 ch 96 SLA 1967.]
Sec. 14.07.095. Term of office.
The members of the board shall be appointed for overlapping five-year terms commencing on the March 1 following the date of the member’s appointment. Except as provided in AS 39.05.080(4), a member appointed to fill a vacancy serves for the unexpired term of the member whose vacancy is filled. A vacancy occurring during a term of office is filled in the same manner as the original appointment.


Sec. 14.07.100. Executive officer. [Repealed, § 14 ch 96 SLA 1967.]
Sec. 14.07.105. Quorum and chair.
 (a) Four members constitute a quorum.

 (b) The board shall designate one member of the board as the chairperson who serves as chair of the board at the pleasure of the board.




Sec. 14.07.110. Appointment of commissioner. [Repealed, § 14 ch 96 SLA 1967.]
Sec. 14.07.115. Removal.
Members of the board serve at the pleasure of the governor.


Sec. 14.07.120. Term of office and vacancy. [Repealed, § 14 ch 96 SLA 1967.]
Sec. 14.07.125. Meetings.
The board shall meet at least quarterly. Meetings may be called by the chair or by a majority of the members of the board. Meetings shall be held in Juneau unless a majority of the members of the board changes the place of a meeting.


Sec. 14.07.130. Removal of commissioner. [Repealed, § 14 ch 96 SLA 1967.]
Sec. 14.07.135. Legal assistance.
The Department of Law shall provide all legal services for the board.


Sec. 14.07.140. Commissioner administers department. [Repealed, § 14 ch 96 SLA 1967.]
Sec. 14.07.145. Commissioner of education and early development.
 (a) The board shall appoint the commissioner of education and early development subject to the approval of the governor. The commissioner shall be the principal executive officer of the department.

 (b) The commissioner shall be appointed without regard to political affiliation and shall have at least a master’s degree with five years’ experience in the field of education since receiving it, with at least three of the five years in an exclusively administrative position.

 (c) The commissioner serves at the pleasure of the board and may not be appointed by the board for a fixed term.

 (d) The commissioner shall receive the salary set out in AS 39.20.080.

 (e) The commissioner shall employ and remove all classified personnel in the department subject to AS 39.25 (State Personnel Act). The commissioner may employ and remove personnel in the exempt or partially exempt service subject to the approval of the board. Personnel in the exempt or partially exempt service have a right of appeal to the board if they are removed.

 (f) [Repealed, § 5 ch 14 SLA 1996.]




Sec. 14.07.150. Budget and fiscal authority.
The commissioner has responsibility and authority for the preparation and execution of a budget and for the other fiscal affairs of the department, subject to the approval of the board.


Sec. 14.07.155. Partisan candidacy prohibited.
A member of the board may not be a candidate for partisan political office while serving as a member of the board.


Sec. 14.07.160. Bylaws.
 (a) The board may adopt bylaws for the management of the department.

 (b) The bylaws shall be written and distributed in a manner so as to be readily available to personnel of the department.

 (c) This section may not be construed to allow the use of a bylaw rather than a regulation where the subject is of statewide importance or interest.




Sec. 14.07.165. Duties.
 (a) The board shall adopt
     (1) statewide goals and require each governing body to adopt written goals that are consistent with local needs;

     (2) regulations regarding the application for and award of grants under AS 14.03.125;

     (3) regulations implementing provisions of AS 14.11.014(b);

     (4) regulations requiring approval by the board before a charter school, state boarding school, or a public school may provide domiciliary services;

     (5) [Repealed, §§ 25, 29 ch 2 SSSLA 2015.]
 (b) [Repealed, §§ 25, 29 ch 2 SSSLA 2015.]




Sec. 14.07.168. Report to the legislature.
Not later than the 30th legislative day of each regular session of the legislature, the board shall prepare and present in person to the legislative committees having jurisdiction over education an annual report that describes the efforts of the board to develop, maintain, and continuously improve a comprehensive quality public education system, as provided for under the bylaws of the board. The report must include
     (1) a summary of the resolves and rationales provided in support of policy decisions made under AS 14.03.015;

     (2) program and curriculum changes made, discussed, or recommended in meetings held under AS 14.07.125;

     (3) additional information relevant to efforts made to improve and maintain the public education system.




Sec. 14.07.170. Additional powers and duties of board.
 (a) The board may
     (1) appoint unpaid advisory commissions;

     (2) require school boards or school personnel to submit to the department, in the form the board may require, the district budget or any information or reports that are reasonably necessary to assist the department in carrying out its functions.

 (b) The board shall review grant applications recommended under AS 14.11.013 and may approve grant applications under AS 14.11.015.




Sec. 14.07.175. Development of statewide assessment plan; review of education laws and regulations.
 (a) Notwithstanding AS 14.03.078, 14.03.120, 14.03.123, 14.03.300, 14.03.310, AS 14.07.020, 14.07.030, 14.07.165, or a provision of federal law to the contrary, and except as provided in (d) of this section, the department may not require a school district or school to administer a statewide standards-based assessment after July 1, 2016, and before July 1, 2018. The department and the board shall create a plan for working with school districts to develop or select statewide assessments that are approved by school districts. The plan must provide for the first administration of the assessments not later than the school year that begins in 2020.

 (b) The department shall review state education laws and regulations to identify unnecessary laws or regulations and areas where the laws or regulations may be changed to provide school districts with greater control over public education policy in light of the enactment of P.L. 114-95 (Every Student Succeeds Act).

 (c) On or before January 1, 2018, the department shall submit a report to the senate secretary and chief clerk of the house of representatives and notify the legislature that the report is available. The report must describe
     (1) the final plan for developing or selecting statewide assessments as required under (a) of this section; and

     (2) recommendations for changes in laws or regulations as required under (b) of this section.

 (d) The department shall require a school district or school to administer a statewide standards-based assessment after July 1, 2016, and before July 1, 2018, if the United States Department of Education provides notice that the United States Department of Education intends to withhold all or a portion of the state’s federal education funding as a result of the department’s compliance with (a) — (c) of this section.

 (e) In this section, “school district” has the meaning given in AS 14.30.350.




Sec. 14.07.181. Pamphlet concerning controlled substances. [Repealed, § 19 ch 6 SLA 1998.]

Chapter 08. Education in the Unorganized Borough.

Sec. 14.08.010. [Repealed, § 1 ch 124 SLA 1975.]
Sec. 14.08.011. Purpose.
 (a) It is the purpose of this chapter to provide for public education in the unorganized borough and the military reservations in the state.

 (b) Nothing in this chapter prohibits an organized borough, city, village, community, or settlement in an unorganized area of the state from becoming part of or being formed into an organized political subdivision authorized under AS 29.




Sec. 14.08.020. [Repealed, § 1 ch 124 SLA 1975.]
Sec. 14.08.021. Authority.
The legislature delegates to school boards for each regional educational attendance area the authority to operate the public schools in those areas in accordance with the provisions of this chapter, subject to the provisions of this title and the regulations adopted under it that apply to all school districts in the state.


Sec. 14.08.030. [Repealed, § 1 ch 124 SLA 1975.]
Sec. 14.08.031. Regional educational attendance areas.
 (a) The Department of Commerce, Community, and Economic Development in consultation with the Department of Education and Early Development and local communities shall divide the unorganized borough into educational service areas using the boundaries or sub-boundaries of the regional corporations established under the Alaska Native Claims Settlement Act, unless by referendum a community votes to merge with another community contiguous to it but within the boundaries or sub-boundaries of another regional corporation.

 (b) An educational service area established in the unorganized borough under (a) of this section constitutes a regional educational attendance area. As far as practicable, each regional educational attendance area shall contain an integrated socio-economic, linguistically and culturally homogeneous area. In the formation of the regional educational attendance areas, consideration shall be given to the transportation and communication network to facilitate the administration of education and communication between communities that comprise the area. Whenever possible, municipalities, other governmental or regional corporate entities, drainage basins, and other identifiable geographic features shall be used in describing the boundaries of the regional school attendance areas.

 (c) Military reservation schools shall be included in a regional educational attendance area. However, operation of military reservation schools by a city or borough school district may be required by the department under AS 14.12.020(a) and AS 14.14.110. Where the operation of the military reservation schools in a regional educational attendance area by a city or borough school district is required by the department, the military reservation is not considered part of the regional educational attendance area for the purposes of regional school board membership or elections.

 (d) [Repealed, § 42 ch 12 SLA 2006.]




Sec. 14.08.040. [Repealed, § 1 ch 124 SLA 1975.]
Sec. 14.08.041. Regional school boards.
 (a) A regional educational attendance area shall be operated on an areawide basis under the management and control of a regional school board.

 (b) The qualified voters of the communities receiving educational services in each regional educational attendance area shall elect a regional school board of not less than five nor more than eleven members to be elected for the same term, in the same manner, and with the same qualifications as a city or borough school district board under AS 14.12. The initial number of regional school board members shall be determined by the department in consultation with the local communities in the regional educational attendance areas. However, the qualified voters in a regional educational attendance area may increase or decrease the number of regional school board members established under this section by placing the question on the ballot at a regular school board election in the manner prescribed by law. A change in the number of school board members is not effective until the next regular school board election.

 (c) A regional school board shall consist of five, seven, nine or 11 members.

 (d) Subject to (f) of this section, a regional school board member shall be elected at large by the qualified voters of the communities receiving educational services in the entire regional educational attendance area. However, each seat on the regional school board shall be designated by letter or number, and when the declaration of candidacy or other nomination papers of a candidate for the regional school board are filed those papers must indicate the seat that the candidate seeks. A newly elected board member takes office at the first regional school board meeting after certification of the election. If no candidate files for election to a seat on the regional school board, the seat is considered vacant at the time a newly elected member would have taken office.

 (e) [Repealed, § 8 ch 129 SLA 1990.]
 (f) The voters residing within a regional educational attendance area may petition in accordance with AS 14.08.051(b) to have each regional school board member elected from a section of the area by the voters of that section.




Sec. 14.08.045. Vacancies.
 (a) The regional school board shall declare a regional school board seat vacant when the person elected
     (1) fails to qualify within 30 days of certification of the election;

     (2) notifies the school board in writing of the person’s refusal to take office;

     (3) resigns and the resignation is accepted by the school board;

     (4) is convicted of a felony involving moral turpitude or of an offense involving a violation of the oath of office while serving as a school board member; or

     (5) no longer physically resides within the boundaries of the regional educational attendance area, or if the regional educational attendance area has been divided into sections, within the section from which the person was elected, and the school board by a two-thirds vote, declares the seat vacant.

 (b) A vacancy on a regional school board shall be filled under AS 14.12.070.




Sec. 14.08.050. [Repealed, § 1 ch 124 SLA 1975.]
Sec. 14.08.051. School board sections.
 (a) The commissioner in consultation with the Department of Commerce, Community, and Economic Development and the local communities may divide a regional educational attendance area into sections only for the purpose of nominating and electing regional school board members. If the voters in a regional educational attendance area favor election of regional school board members by sections under (b) of this section, the commissioner in consultation with the Department of Commerce, Community, and Economic Development and the local communities shall divide the regional educational attendance area into sections for the purpose of nominating and electing regional school board members. If a regional educational attendance area is divided into sections each school board member shall represent, as nearly as practicable, an equal number of persons. The basis for the division of a regional educational attendance area into sections shall be the total population of the area as reported in the most recent decennial federal census. If the census is five years old or older, then other reliable population data, including population estimates based on public school enrollments, public utility connections, registered voters, or certified employment payrolls, shall be used as the basis for the division of the area into sections. Each section within a regional educational attendance area shall consist of compact, contiguous territory and, as far as practicable, each section shall contain an integrated socio-economic, linguistically and culturally homogeneous area. In the division of the regional school and attendance area into sections, consideration shall be given to the transportation and communication network to facilitate the administration of education and communication between communities that comprise the area. Whenever possible, municipalities, other governmental or regional corporate entities, drainage basins, and other identifiable geographic features shall be used in describing the boundaries of the sections.

 (b) The division of a regional educational attendance area into sections or subsequent recasting of the section boundaries may be proposed by the regional school board or by a petition. The election of each regional school board member from a section by the voters of that section of a regional educational attendance area may be proposed by petition. A petition under this section shall be filed with the director of elections and must contain signatures of qualified voters in the area equal to eight percent of the total vote cast in the most recent regional school board election. The division of the area into sections, election of each regional school board member from a section by the voters of that section, or subsequent recasting of section boundaries is subject to approval by a majority of the qualified voters voting on the question in the regional educational attendance area at the next regular school board election or a special election called for that purpose, and takes effect at the next regular school board election.

 (c) If a regional educational attendance area has been divided into sections, the commissioner shall recast the boundaries of the sections within 90 days following the official reporting of the decennial federal census in accordance with (a) of this section. If the census is five years old or older and other reliable population data acceptable to the department that establishes that board members do not represent as nearly as practicable equal numbers of people under the allocation of seats to a multi-member section under (d) of this section, the commissioner may reallocate the seats among the sections if reallocation will achieve as nearly as practicable equal representation. Reallocation of seats takes effect at the next regular board election after the reallocation.

 (d) Multi-member sections may be created. However,
     (1) each seat on the regional board shall be designated by letter or number and when the declaration of candidacy or other nomination papers of a candidate for the regional school board are filed those papers must indicate the seat that the candidate seeks; and

     (2) except as provided in (f) of this section, a section may not be represented by more than
          (A) three members, if a board consists of five members;

          (B) four members, if a board consists of seven members;

          (C) five members, if a board consists of nine members; or

          (D) six members, if a board consists of 11 members.

 (e) If a regional educational attendance area has been divided into sections, board members shall be residents of the section from which they are elected. Board members shall be elected by the qualified voters of the entire regional educational attendance area, unless the voters have approved election of members by the voters of the section under (b) of this section.

 (f) Upon the request of a regional school board, the commissioner may permit a section that contains more than one community to be represented by more board members than the number set out in (d)(2) of this section if the commissioner determines that
     (1) the regional educational attendance area has had a pattern of substantial population fluctuations between geographic areas within the regional educational attendance area; and

     (2) compliance with the requirements of (d)(2) of this section could result in continuous underrepresentation and overrepresentation of sections.

 (g) In a regional educational attendance area section subject to (f) of this section, no more than two members may be elected from the same community unless the population distribution requires otherwise.




Sec. 14.08.060. [Repealed, § 1 ch 124 SLA 1975.]
Sec. 14.08.061. Term of office.
 (a) Members elected to a regional school board shall serve staggered three-year terms. However,
     (1) the term of office of all of the members of a regional school board elected from the same multi-member section may not expire at the same time; and

     (2) for the first board elected, the term of office of each member shall be determined by lot, according to the following schedule:
          (A) the members of the first five-member school board shall hold office for terms as follows: one member for a one-year term; two for a two-year term and two for a three-year term;

          (B) the members of the first seven-member school board hold office for terms as follows: two members for a one-year term; two for a two-year term and three for a three-year term;

          (C) the members of the first nine-member school board hold office for terms as follows: three for a one-year term; three for a two-year term and three for a three-year term;

          (D) the members of the first 11-member school board hold office for terms as follows: three for a one-year term, four for a two-year term and four for a three-year term.

 (b) If a regional educational attendance area is divided into sections under AS 14.08.051 where the school board formerly was elected at large, or if the number of regional school board members is increased or decreased by the qualified voters in the regional educational attendance area under AS 14.08.041(b), the term of office of all members of the existing board shall terminate on the date on which the new board members take office, and the provisions of (a) of this section are applicable to the determination of the terms of office of the new members of the regional school boards.

 (c) Nothing in this section precludes a board member from being reelected.




Sec. 14.08.070. [Repealed, § 1 ch 124 SLA 1975.]
Sec. 14.08.071. Elections; advisory votes.
 (a) In each regional educational attendance area in the unorganized borough, the lieutenant governor, within not less than 60, nor more than 90 days after the establishment of the regional educational attendance area, shall provide for the election of a regional school board.

 (b) Except for the first election of regional school board members under (a) of this section, elections shall be held annually on the first Tuesday in October. Elections shall be supervised by the director of elections in the office of the lieutenant governor, but shall be administered within second class cities as part of the regular municipal election. The lieutenant governor shall adopt regulations for the conduct of the election of regional school board members comparable, as far as practicable, to those prescribed for election of school board members under AS 14.12 and AS 29.20.300 except that the majority election requirements of AS 29.26.060 do not apply to, nor may the regulations require runoff elections for, the first election of regional school board members under (a) of this section or, if a school board by resolution so requests, to subsequent elections in the regional educational attendance area served by that school board.

 (c) The cost of each regional school board election, or recall election under AS 14.08.081, shall be borne by the state.

 (d) If a regional school board adopts a resolution requesting that an advisory question relating to education be placed on that regional school board’s next election ballot, the division of elections shall place the advisory question on that regional school board’s next election ballot. A resolution described in this subsection must be filed with the division of elections on or before the first Friday in August of the year in which the advisory question is required to be placed on the ballot. An advisory question authorized under this subsection may not consist of more than 100 words and shall be worded in a manner that allows the advisory question to be answered with a “yes” to favor the question or “no” to oppose the question.

 (e) The lieutenant governor may provide for the election of an advisory school board established under AS 14.08.115. An election conducted under this subsection shall be held on the first Tuesday in October. The lieutenant governor may adopt regulations governing an election conducted under this subsection.




Sec. 14.08.080. [Repealed, § 1 ch 124 SLA 1975.]
Sec. 14.08.081. Recall.
The members of a regional school board are subject to recall in accordance with AS 29.26.240 — 29.26.360, except that the director of elections shall perform the functions of a municipal clerk, the lieutenant governor shall perform the functions of the assembly or council under those sections, and the last regular election is the last regularly scheduled election held within the regional educational attendance area.


Sec. 14.08.090. [Repealed, § 1 ch 124 SLA 1975.]
Sec. 14.08.091. Organization; oath and bond.
 (a) The regional school boards shall be organized in accordance with AS 14.14.070, and, before taking office, each school board member shall take and sign the oath or affirmation prescribed by AS 14.12.090.

 (b) The officer of the board responsible for the custody of regional educational attendance area funds shall execute a bond of $50,000 with the commissioner.




Sec. 14.08.100. [Repealed, § 1 ch 124 SLA 1975.]
Sec. 14.08.101. Powers.
A regional school board may
     (1) sue and be sued;

     (2) contract with the department, the Bureau of Indian Affairs, or any other school district, agency, or regional board for the provision of services, facilities, supplies, or utilities;

     (3) determine its own fiscal procedures, including policies and procedures for the purchase of supplies and equipment; the regional school boards are exempt from AS 37.05 (Fiscal Procedures Act) and AS 36.30 (State Procurement Code);

     (4) appoint, compensate, and otherwise control all school employees in accordance with this title; these employees are not subject to AS 39.25 (State Personnel Act);

     (5) adopt regulations governing organization, policies, and procedures for the operation of the schools;

     (6) establish, maintain, operate, discontinue, and combine schools subject to the approval of the commissioner;

     (7) recommend to the department projects for construction, rehabilitation, and improvement of schools and education-related facilities as specified in AS 14.11.011(b), and plan, design, and construct the project when the responsibility for it is assumed under AS 14.11.020;

     (8) by resolution adopted by a majority of all the members of the board and provided to the commissioner of the department, assume ownership of all land and buildings used in relation to the schools in the regional educational attendance area, as provided for in AS 14.08.151(b);

     (9) provide housing for rental to teachers, by leasing existing housing from a local agency or individual, by entering into contractual arrangements with a local agency or individual to lease housing that will be constructed by the local agency or individual for that purpose, or, without using for the purpose that portion of public school funding that consists of state aid provided under AS 14.17, by constructing or otherwise acquiring housing that is owned and managed by the regional educational attendance area for rental to teachers;

     (10) employ a chief school administrator;

     (11) apply for and use the proceeds of a loan from the Alaska energy efficiency revolving loan fund (AS 18.56.855);

     (12) exercise those other functions that may be necessary for the proper performance of its responsibilities.




Sec. 14.08.110. [Repealed, § 1 ch 124 SLA 1975.]
Sec. 14.08.111. Duties.
A regional school board shall
     (1) provide, during the school term of each year, an educational program for each school age child who is enrolled in or a resident of the district;

     (2) develop a philosophy of education, principles, and goals for its schools;

     (3) approve the employment of the professional administrators, teachers, and noncertificated personnel necessary to operate its schools;

     (4) establish the salaries to be paid its employees;

     (5) designate the employees authorized to direct disbursements from the school funds of the board;

     (6) submit the reports prescribed for all school districts;

     (7) provide for an annual audit in accordance with AS 14.14.050;

     (8) provide custodial services and routine maintenance of school buildings and facilities;

     (9) establish procedures for the review and selection of all textbooks and instructional materials, including textbooks and curriculum materials for statewide correspondence programs, before they are introduced into the school curriculum; the review includes a review for violations of AS 14.18.060; nothing in this paragraph precludes a correspondence study student, or the parent or guardian of a correspondence study student, from privately obtaining or using textbooks or curriculum material not provided by the school district;

     (10) provide prospective employees with information relating to the availability and cost of housing in rural areas to which they might be assigned, and, when possible, assist them in locating housing; however, nothing in this paragraph requires a regional school board to provide teacher housing, whether owned, leased, or rented or otherwise provided by the regional educational attendance area, nor does it require the board to engage in a subsidy program of any kind with respect to teacher housing;

     (11) train persons required to report under AS 47.17.020, in the recognition and reporting of child abuse, neglect, and sexual abuse of a minor; and

     (12) establish procedures for providing the training under AS 14.18.060, AS 14.20.149, 14.20.680, AS 14.30.355, 14.30.356, AS 14.30.362, AS 14.33.100, AS 18.66.310, and AS 47.17.022; the procedures established under this paragraph must include a training schedule that ensures that not less than 50 percent of the total certificated staff employed by the district receive all of the training not less than every two years and that all of the certificated staff employed by the district receive all of the training not less than every four years.




Sec. 14.08.115. Advisory school boards in regional educational attendance areas.
 (a) A regional school board shall establish advisory school boards in each community in the regional educational attendance area that has more than 50 permanent residents, and by regulation shall prescribe their manner of selection and organization, and, in a manner consistent with (b) of this section, their powers and duties.

 (b) An advisory board shall advise the regional school board on all matters concerning schools in the community in which the advisory board is established.




Sec. 14.08.120. [Repealed, § 1 ch 124 SLA 1975.]
Sec. 14.08.121. Funding. [Repealed, § 21 ch 26 SLA 1980.]
Sec. 14.08.130. [Repealed, § 1 ch 124 SLA 1975.]
Sec. 14.08.131. Disqualification from voting for conflict of interest.
A board member having a direct or indirect pecuniary interest in a contract for erection of buildings, heating, ventilation, furnishing, or repairing the buildings or in a contract for the furnishing of supplies for a regional school is disqualified from voting on any question involving the pecuniary interest of the member unless the member has disclosed that interest to the board and the remaining members have approved the member’s participation in the voting.


Sec. 14.08.140. [Repealed, § 1 ch 124 SLA 1975.]
Sec. 14.08.141. Regional resource centers. [Repealed, § 1 ch 236 SLA 1976. For current law, see AS 14.12.150 — 14.12.180.]
Sec. 14.08.150. [Repealed, § 1 ch 124 SLA 1975.]
Sec. 14.08.151. Land and buildings.
 (a) Except as provided in (b) of this section, the ownership of land and buildings used in relation to regional educational attendance area schools shall remain vested in the state, and use permits shall be given to the regional school boards.

 (b) Except for land located within the boundaries of a state airport, a regional school board may, by resolution, request, and the commissioner of the department having responsibility shall convey, title to land and buildings used in relation to regional educational attendance area schools. If the state holds less than fee title to the land, the commissioner of the department having responsibility shall convey the entire interest of the state in the land to the regional school board.




Sec. 14.08.160. [Repealed, § 1 ch 124 SLA 1975.]
Sec. 14.08.161. School construction, repair, and improvement. [Repealed, § 10 ch 92 SLA 1982. For current law, see AS 14.11.]
Sec. 14.08.170. [Repealed, § 1 ch 124 SLA 1975.]

Chapter 09. Transportation of Pupils.

Sec. 14.09.010. Transportation of students.
 (a) A school district that provides student transportation services for the transportation of students who reside a distance from established schools is eligible to receive funding for operating or subcontracting the operation of the transportation system for students to and from the schools within the student’s transportation service area. Subject to appropriation, the amount of funding provided by the state for operating the student transportation system is the amount of a school district’s ADM, less the ADM for the district’s correspondence programs during the current fiscal year, multiplied by the per student amount for the school district as follows:


DISTRICT     PER STUDENT AMOUNT                    (2)          (1)           for the school           for the school           years beginning           year beginning           on or after           July 1, 2011           July 1, 2012     Alaska Gateway      $2,081           $2,148     Aleutians East     311           321     Anchorage     435           449     Annette Island     182           188     Bering Strait      48           50     Bristol Bay     2,672          2,758     Chatham      280           289     Copper River     1,586          1,637     Cordova     335           346     Craig     423           437     Delta/Greely     1,656          1,709     Denali     1,808          1,866     Dillingham     1,218          1,257     Fairbanks     817           843     Galena     255           263     Haines     626           646     Hoonah     298           308     Iditarod     211           218     Juneau     604           623     Kake     271           280     Kashunamiut      5           5     Kenai Peninsula      766           944     Ketchikan      727           750     Klawock      584           603     Kodiak Island      799           825     Kuspuk      654           675     Lake and Peninsula      384           396     Lower Kuskokwim      277           286     Lower Yukon      1           1     Matanuska-Susitna      910           939     Nenana      587           606     Nome      621           641     North Slope     1,120          1,156     Northwest Arctic      25           26     Pelican      72           74     Petersburg      374           386     Saint Mary”s      193           199     Sitka      428           442     Skagway      36           37     Southeast Island     1,155          1,192     Southwest Region      598           617     Tanana      478           493     Unalaska      648           669     Valdez      735           759     Wrangell      701           723     Yakutat      744           768     Yukon Flats      264           272     Yukon/Koyukuk      299           309     Yupiit      2           2.      (b) The department shall adopt regulations that provide for oversight of and support to school districts in achieving a safe and cost-effective student transportation system. The regulations must include a requirement for contract terms of not less than three years, if feasible, standardized conditions and bid periods, and standards that ensure cost efficiencies and exclusions.

 (c) [Repealed, § 11 ch 9 SLA 2008.]
 (d) A school district that provides transportation services under this section shall provide transportation services to students attending a charter school operated by the district under a policy adopted by the district. The policy must

 (1) be developed with input solicited from individuals involved with the charter school, including staff, students, and parents;

 (2) at a minimum, provide transportation services for students enrolled in the charter school on a space available basis along the regular routes that the students attending schools in an attendance area in the district are transported; and

 (3) be approved by the department.

 (e) If a school district fails to adopt a policy under (d) of this section, the school district shall allocate the amount received for each student under (a) of this section to each charter school operated by the district based on the number of students enrolled in the charter school.

 (f) Nothing in (d) of this section requires a school district to establish dedicated transportation routes for the exclusive use of students enrolled in a charter school or authorizes a charter school to opt out of a policy adopted by a school district for the purpose of acquiring transportation funding.

 (g) In this section,

 (1) “ADM” has the meaning given in AS 14.17.990;

 (2) “district’s ADM” means the sum of the ADMs in the district.




Sec. 14.09.020. Transportation for nonpublic school students.
In those places in the state where the department or a school district provides transportation for children attending public schools, the department also shall provide transportation for children who, in compliance with the provisions of AS 14.30, attend nonpublic schools that are administered in compliance with state law where the children, in order to reach the nonpublic schools, must travel distances comparable to, and over routes the same as, the distances and routes over which the children attending public schools are transported. The commissioner shall administer this nonpublic school student transportation program, integrating it into existing systems as much as feasible, and the cost of the program shall be paid from funds appropriated for that purpose by the legislature.


Sec. 14.09.025. Drug testing for school bus drivers.
 (a) A school district or regional educational attendance area that provides for the transportation of pupils shall require that the drivers of motor vehicles used to transport pupils submit to testing for the use of drugs and alcohol. The testing program must include random testing. A driver who tests positive for the improper use of drugs or alcohol may be disciplined, including termination from employment.

 (b) For a driver who is not required to have a commercial driver’s license, an employer
     (1) shall keep and maintain records of the testing for improper use of drugs or alcohol on a confidential basis and may only release the results with the written consent of the employee; and

     (2) may not retain false positive test results in the employee’s employment records and may not release information about a false positive test without the written consent of the employee.

 (c) The department shall adopt regulations to implement this section. The regulations must include a provision for a hearing before discipline is imposed.

 (d) In this section, “improper use of drugs or alcohol” means use that constitutes a criminal offense and use that violates regulations adopted by the department under this section.




Sec. 14.09.030. School buses.
 (a) A municipal school district or regional educational attendance area shall
     (1) provide instruction on safe boarding, riding, exiting, and emergency procedures to school children transported to or from a public school by school bus;

     (2) provide instruction to drivers and passengers on the proper use of seat belts if school children in the municipal school district or regional educational attendance area are transported in buses equipped with seat belts; and

     (3) conduct at least three school bus drills each school year in safe boarding, exiting, and emergency procedures; one drill must be conducted during the first three weeks of the school term.

 (b) The department shall
     (1) establish equipment requirements for each type of school bus that is used to transport school children to or from a public school;

     (2) at least twice each calendar year, inspect each school bus for compliance with requirements adopted under this subsection; and

     (3) maintain a record of each accident involving a school bus or other vehicle transporting school children that is owned by, leased by, or provided under contract to a municipal school district or regional educational attendance area; the record must include the date of the accident, a list of persons injured, whether the person’s injury occurred within the school bus, and each type of injury.




Chapter 10. Administration of the School System.

[Repealed, § 59 ch 98 SLA 1966.]

Article 1. Public School Facilities in General.


Chapter 11. Construction, Rehabilitation, and Improvement of Schools and Education-Related Facilities.

Sec. 14.11.005. School construction grant fund.
There is created a school construction grant fund as an account in the general fund. The fund shall be used to make grants for the costs of school construction. Legislative appropriations for school construction shall be deposited in the fund, and the proceeds from the sale of general obligation bonds for school construction may be deposited in the fund.


Sec. 14.11.007. Major maintenance grant fund.
There is created a major maintenance grant fund as an account in the general fund. The fund shall be used to make grants for the costs of school major maintenance. Legislative appropriations for school major maintenance shall be deposited in the fund.


Sec. 14.11.008. School district participation in grant program.
 (a) In order to receive a grant under this chapter or an appropriation under AS 37.05.560, a district must provide a percentage share of the project cost, as determined under (b) or (c) of this section. A district shall provide the required participating share within three years after the date that the appropriation bill funding the grant is passed by the legislature.

 (b) The required participating share for a municipal school district is based on the district’s full value per average daily membership (ADM), which is calculated by dividing the full and true value of the taxable real and personal property in the district, calculated as described in AS 14.17.510, by the district ADM as defined in AS 14.17.990, for the same fiscal year for which the valuation was made. The municipal district’s full value per ADM determines the district’s required participating share, as follows:
     Full Value Per ADM          District Participating Share                $1 — $150,000          5 percent                150,001 — 275,000          10 percent                275,001 — 500,000          20 percent                500,001 — 800,000          30 percent                over 800,000          35 percent.           (c) The required participating share for a regional educational attendance area is two percent. The participating share for any district may be satisfied by money from federal, local, or other sources, or with locally contributed labor, material, or equipment.

 (d) If a district with full value per ADM of $200,000 or less can demonstrate in writing that it is unable to provide the required participating share or that the participating share required under this section will jeopardize receipt of federal assistance, the commissioner may waive all or a portion of the required participating share.

 (e) State funds provided under this chapter may not be a source of the participating share required under (b) or (c) of this section.

 (f) [Repealed, § 11 ch 3 SSSLA 2002.]




Sec. 14.11.010. Recommendations and evaluations of projects. [Repealed, § 15 ch 5 SLA 1990.]
Sec. 14.11.011. Grant applications.
 (a) A municipality that is a school district or a regional educational attendance area may submit a request to the department for a grant under this chapter.

 (b) For a municipality that is a school district or a regional educational attendance area to be eligible for a grant under this chapter, the district shall submit
     (1) a six-year capital improvement plan that includes a description of the district’s fixed asset inventory system and preventive maintenance program no later than September 1 of the fiscal year before the fiscal year for which the request is made; the six-year plan must contain for each proposed project a detailed scope of work, a project budget, and documentation of conditions justifying the project;

     (2) evidence that the district has secured and will maintain adequate property loss insurance for the replacement cost of all facilities for which state funds are available under AS 14.11.005 or 14.11.007 or has a program of insurance acceptable to the department;

     (3) evidence acceptable to the department that the proposed project should be a capital improvement project and not part of a preventive maintenance program or regular custodial care program; and

     (4) evidence acceptable to the department that the district
          (A) has a preventive maintenance plan that
               (i) includes a computerized maintenance management program, cardex system, or other formal systematic means of tracking the timing and costs associated with planned and completed maintenance activities, including scheduled preventive maintenance;

               (ii) addresses energy management for buildings owned or operated by the district;

               (iii) includes a regular custodial care program for buildings owned or operated by the district;

               (iv) includes preventive maintenance training for facility managers and maintenance employees;

               (v) includes renewal and replacement schedules for electrical, mechanical, structural, and other components of facilities owned or operated by the district; and

          (B) is adequately adhering to the preventive maintenance plan.




Sec. 14.11.013. Department review of grant applications.
 (a) With regard to projects for which grants are requested under AS 14.11.011, the department shall
     (1) annually review the six-year plans submitted by each district under AS 14.11.011(b) and recommend to the board a revised and updated six-year capital improvement project grant schedule that serves the best interests of the state and each district; in recommending projects for this schedule, the department shall verify that each proposed project meets the criteria established under AS 14.11.014(b) and qualifies as a project required to
          (A) avert imminent danger or correct life-threatening situations;

          (B) house students who would otherwise be unhoused; for purposes of this subparagraph, students are considered unhoused if the students attend school in temporary facilities;

          (C) protect the structure of existing school facilities;

          (D) correct building code deficiencies that require major repair or rehabilitation in order for the facility to continue to be used for the educational program;

          (E) achieve an operating cost savings;

          (F) modify or rehabilitate facilities for the purpose of improving the instructional program;

          (G) meet an educational need not specified in (A) — (F) of this paragraph, identified by the department;

     (2) prepare an estimate of the amount of money needed to finance each project;

     (3) provide to the governor, by November 1, and to the legislature within the first 10 days of each regular legislative session, a revised and updated six-year capital improvement project grant schedule, together with a proposed schedule of appropriations.

 (b) In preparing the construction grant schedule, the department shall establish priorities among projects for which grants are requested and shall award school construction grants in the order of priority established. In establishing priorities the department shall evaluate at least the following factors, without establishing an absolute priority for any one factor:
     (1) emergency requirements;

     (2) priorities assigned by the district to the projects requested;

     (3) new local elementary and secondary programs;

     (4) existing regional, community, and school facilities, and their condition; this paragraph does not include administrative facilities;

     (5) the amount of district operating funds expended for maintenance; and

     (6) other options that would reduce or eliminate the need for the request.

 (c) The department may
     (1) modify a project request when necessary to achieve cost-effective school construction;

     (2) require that a school construction project be phased for purposes of planning, design, and construction; and

     (3) reject project requests and omit them from the six-year schedule due to
          (A) incomplete information or documentation provided by the district;

          (B) a determination by the department that existing facilities can adequately serve the program requirements, or that alternative projects are in the best interests of the state;

          (C) a determination that the project is not in the best interest of the state.

 (d) The department shall reduce a project budget by the cost of those portions of a project design that the department determines (1) are for construction of student residential space, planetariums, hockey rinks, saunas, and other facilities for single purpose sporting or recreational uses that are not suitable for other activities; or (2) do not meet the criteria developed under AS 14.11.014(b) that are applicable to the project. This subsection does not apply to funding for swimming pools that meet criteria established by the department.

 (e) By November 5, the department shall provide public notice of the grant applications submitted under (a) of this section and the priorities established under (b) of this section. After public notice has been given, the department shall, not later than December 1, hold a public hearing on the priorities established under (b) of this section. In this subsection, “public notice” means notice published in a newspaper of general circulation and notice to every person who has requested notice about the grant application program from the department.




Sec. 14.11.014. Bond reimbursement and grant review committee.
 (a) The commissioner shall establish a bond reimbursement and grant review committee for the purpose described in (b) of this section. In making selections to the committee, the commissioner shall seek to maintain a regional statewide balance on the committee. The committee shall consist of the commissioner or the commissioner’s designee, two members of the legislature selected by the presiding officers of the house and senate, and six other people selected by the commissioner as follows:
     (1) two persons shall have professional degrees and experience in school construction;

     (2) two persons shall have experience in urban or rural school facilities management;

     (3) two persons shall represent the public.

 (b) The committee shall
     (1) review the department’s priorities among projects for which school construction grants are requested;

     (2) make recommendations to the board concerning school construction grants and make recommendations to the commissioner concerning projects for which bond reimbursement is requested;

     (3) develop criteria for construction of schools in the state; criteria developed under this paragraph must include requirements intended to achieve cost-effective school construction;

     (4) analyze existing prototypical designs for school construction projects;

     (5) establish a form for grant applications;

     (6) establish a method of ranking grant projects;

     (7) recommend to the board necessary changes to the approval process for school construction grants and for projects for which bond reimbursement is requested;

     (8) set standards for energy efficiency for school construction and major maintenance to provide energy efficiency benefits for all school locations in the state and that address energy efficiency in design and energy systems that minimize long-term energy and operating costs.

 (c) Members of the committee serve without compensation, but members who are not representing the department are entitled to per diem and travel expenses authorized for boards and commissions under AS 39.20.180.

 (d) Notwithstanding any other provision of law, the committee may not recommend for approval an application for bond debt reimbursement made by a municipality for school construction or major maintenance for indebtedness authorized by the qualified voters of the municipality on or after January 1, 2015, but before July 1, 2020.




Sec. 14.11.015. Approval of grant applications.
 (a) The board shall review grant applications that have been recommended by the department under AS 14.11.013, and may approve a grant application if the board determines that the project meets the criteria specified in AS 14.11.013(a)(1) and 14.11.014. The department may not award a grant unless the grant application is approved by the board.

 (b) To the extent that money is available in the appropriate fund, the department shall award grants approved under (a) of this section in the order of the projects’ priority on the date the appropriation bill funding the appropriate grant fund is passed by the legislature, regardless of any appeal pending under AS 14.11.016. Appeals pending under AS 14.11.016 at the time that grants are awarded may not delay the funding of grants awarded under this section.

 (c) If a project is assigned a new priority ranking under AS 14.11.016 after the date of passage by the legislature of the appropriation bill for the appropriate grant fund, the project must be funded from the appropriate fund in accordance with the new priority ranking at the next time that grants are awarded.




Sec. 14.11.016. Administrative and judicial review.
 (a) A district may request reconsideration of a decision of the department assigning a priority to the district’s project, establishing the scope of the project, or establishing the budget for the project. The request must be in writing and must include a statement of the specific changes desired, and a summary of the evidence supporting the district’s claim that the department has erred in its review of the district’s grant application. A request for reconsideration must be received by the department by the day of the public hearing held under AS 14.11.013(e). The department shall review its decision on the basis of the request by the district and determine whether its decision should be changed. The department shall issue its determination in writing within 15 days after the last day of the public hearing held under AS 14.11.013(e).

 (b) A district may appeal an adverse decision of the department under (a) of this section by filing a written notice of appeal with the commissioner within 15 days after the date of the department’s decision. The notice of appeal must state the legal and factual basis for the appeal and the precise relief sought. The failure of the district to include an issue in a notice of appeal constitutes a waiver of the right to have the issue considered. Not later than 10 days after receipt by the commissioner of a notice of appeal, the chief administrative law judge of the office of administrative hearings (AS 44.64.010) shall appoint an administrative law judge who is qualified under AS 44.62.350(c) to serve as hearing officer and consider the appeal. If the hearing officer finds that the notice of appeal does not raise a reasonable issue of fact or law, the hearing officer shall issue a written decision denying the appeal. Denial of an appeal by hearing officer is a final decision that may be appealed under (d) of this section. If the hearing officer finds that the notice of appeal raises a reasonable issue of fact or law, the hearing officer shall conduct a hearing on those issues and recommend a decision to the board. The hearing officer shall issue a decision on the appeal not later than 60 days after being appointed. The board shall consider the recommended decision of the hearing officer at its next regularly scheduled meeting and may adopt all, part, or none of the recommended decision or may remand the issue to the hearing officer for further hearings. The board shall issue its decision in writing within 10 days after consideration of the hearing officer’s decision.

 (c) The hearing officer may consolidate appeals under (b) of this section, if the notices of appeal raise related issues of fact or law.

 (d) A district may appeal an adverse decision of a hearing officer or the board under (b) of this section to the superior court in the manner provided by AS 44.62.560 — 44.62.570.

 (e) The board shall adopt regulations governing procedures for the reconsideration and appeal of decisions under this section. The regulations adopted under this subsection are not required to conform to AS 44.62.330 — 44.62.630, but shall be consistent with minimum standards of due process.

 (f) A district may not request reconsideration of or appeal a priority determination on the grounds that a revised priority assigned to another project, due to a reconsideration or appeal under this section, has resulted in a lower priority being accorded to the district’s project.




Sec. 14.11.017. Grant conditions.
 (a) The department shall require in the grant agreement that a municipality that is a school district or a regional educational attendance area
     (1) agree to construction of a facility of appropriate size and use that meets criteria adopted by the department if the grant is for school construction;

     (2) provide reasonable assurance by a means acceptable to the department, that the cost of the project will be uniform with the costs of the most current construction or major maintenance projects, as appropriate, in the area;

     (3) agree to limit equipment purchases to that required for the approved project plan submitted under (5) of this subsection and account for all equipment purchased for the project under a fixed asset inventory system approved by the department;

     (4) submit project budgets for department approval and agree that the grant amount may, at the discretion of the department, be reduced or increased by amounts equal to the amounts by which contracts vary from the budget amounts approved by the department; and

     (5) submit to the department for approval, before award of the contract, a plan for the project that includes educational specifications, final drawings, and contract documents.

 (b) The cost of any school construction or major maintenance activity encompassed by the definition of “costs of school construction” under AS 14.11.135 is payable under a grant awarded from the appropriate fund under AS 14.11.015 without regard to whether the costs were incurred before the
     (1) award of the grant;

     (2) approval of the grant application by the board; or

     (3) effective date of an appropriation to the appropriate grant fund for the year in which the grant is funded.

 (c) The department, by regulation, may establish the time period in which activities described in (b) of this section must have occurred in order to be paid under a grant.




Sec. 14.11.019. Grant appropriations.
Within the appropriation bill authorizing capital expenditures submitted to the legislature under AS 37.07.020(a)(3), the governor shall include an appropriation for grants in the succeeding fiscal year as determined by the six-year capital improvement project grant schedule prepared under AS 14.11.013.


Sec. 14.11.020. Assumption of responsibilities.
 (a) The assembly or council of a municipality that is a school district or a regional school board may, by resolution or majority vote of the body, assume the responsibilities relating to the planning, design, and construction of a school or an education-related facility located within the boundaries or operating area of the municipality or regional educational attendance area. After receipt of a request by an assembly or council under this subsection, the department shall provide for the assumption of the responsibilities requested. After receipt of a request by a regional school board under this subsection, the department may provide for the assumption of the responsibilities requested.

 (b) If a municipality that is a school district or a regional educational attendance area assumes the responsibilities under this section, the department shall grant to the municipality or regional educational attendance area money appropriated for the school or education-related facility. The department may transfer the appropriations to a special construction account in the state treasury. Under the fiscal control of the department, a municipality or regional educational attendance area that assumes responsibilities for the project as provided in this section may draw on the account for costs of the project.

 (c) The construction management costs of a project assumed under this section may not exceed four percent of the amount of appropriations for the facility if the amount of appropriations is $500,000 or less. The construction management costs of a project assumed under this section may not exceed three percent of the amount of appropriations for the facility if the amount of appropriations is over $500,000 but less than $5,000,000. The construction management costs of a project assumed under this section may not exceed two percent of the amount of appropriations for the facility if the amount of appropriations is $5,000,000 or more. For purposes of this subsection “construction management” means management of the project’s schedule, quality, and budget during any phase of the planning, design, and construction of the facility by a private contractor engaged by the municipality or regional educational attendance area.

 (d) The commissioner shall adopt necessary regulations implementing this section, and setting out the requirements for agreements between the department and a municipality or regional educational attendance area relating to the assumption by the municipality or regional educational attendance area of responsibilities for the planning, design, and construction of a project.




Sec. 14.11.025. State aid for school construction in regional educational attendance areas and small municipal school districts.
 (a) In addition to other appropriations and funding sources, the department may provide grant funding from the fund established under AS 14.11.030 to a school district that is a regional educational attendance area or a small municipal school district.

 (b) The amount of money available each fiscal year for expenditure under (a) of this section shall be the annual debt service on debt incurred under AS 14.11.100(a) divided by the percentage of all schools that are located in a city or borough school district that is not a small municipal school district, the quotient of which is to be multiplied by .244.

 (c) In this section, “small municipal school district” means a city or borough school district in the state that has an ADM of not more than 300 and in which the district’s full value per ADM is not more than $500,000. In this subsection, the district’s full value per ADM is determined by dividing the full and true value of the taxable real and personal property in the district, calculated as described in AS 14.17.510, by the district ADM, as defined in AS 14.17.990, for the same fiscal year for which the valuation was made.




Sec. 14.11.030. Regional educational attendance area and small municipal school district fund.
 (a) The regional educational attendance area and small municipal school district school fund is created as an account in the general fund to be used, in addition to other funding sources, to fund projects approved under AS 14.11.025 for the costs of school construction in regional educational attendance areas and small municipal school districts.

 (b) Legislative appropriations, including appropriations of interest earned on the fund, shall be deposited in the fund established under this section. The fund balance may not exceed $70,000,000.

 (c) Money appropriated to the fund does not lapse except to the extent money in the fund exceeds the maximum fund balance specified in (b) of this section.

 (d) In this section, “small municipal school district” has the meaning given in AS 14.11.025.




Sec. 14.11.035. Report on school construction and major maintenance funding.
Beginning in February 2013, the department shall provide to the governor and the legislature an annual report on the effectiveness of the school construction and major maintenance grants, state aid for school construction in regional educational attendance areas, and state aid for costs of school construction debt under this chapter. The report must include an analysis of funding sources and the short-term and long-term fiscal effects of the funding on the state. Copies of the report shall be made available to the public and to the legislature.


Sec. 14.11.100. State aid for costs of school construction debt.
 (a) During each fiscal year, the state shall allocate to a municipality that is a school district the following sums:
     (1) payments made by the municipality during the fiscal year two years earlier for the retirement of principal and interest on outstanding bonds, notes, or other indebtedness incurred before July 1, 1977, to pay costs of school construction;

     (2) 90 percent of
          (A) payments made by the municipality during the fiscal year two years earlier for the retirement of principal and interest on outstanding bonds, notes, or other indebtedness incurred after June 30, 1977, and before July 1, 1978, to pay costs of school construction;

          (B) cash payments made after June 30, 1976, and before July 1, 1978, by the municipality during the fiscal year two years earlier to pay costs of school construction;

     (3) 90 percent of
          (A) payments made by the municipality during the fiscal year two years earlier for the retirement of principal and interest on outstanding bonds, notes, or other indebtedness incurred after June 30, 1978, and before January 1, 1982, to pay costs of school construction projects approved under AS 14.07.020(a)(11);

          (B) cash payments made after June 30, 1978, and before July 1, 1982, by the municipality during the fiscal year two years earlier to pay costs of school construction projects approved under AS 14.07.020(a)(11);

     (4) subject to (h) and (i) of this section, up to 90 percent of
          (A) payments made by the municipality during the current fiscal year for the retirement of principal and interest on outstanding bonds, notes, or other indebtedness incurred after December 31, 1981, and authorized by the qualified voters of the municipality before July 1, 1983, to pay costs of school construction, additions to schools, and major rehabilitation projects that exceed $25,000 and are approved under AS 14.07.020(a)(11);

          (B) cash payments made after June 30, 1982, and before July 1, 1983, by the municipality during the fiscal year two years earlier to pay costs of school construction, additions to schools, and major rehabilitation projects that exceed $25,000 and are approved under AS 14.07.020(a)(11); and

          (C) payments made by the municipality during the current fiscal year for the retirement of principal and interest on outstanding bonds, notes, or other indebtedness to pay costs of school construction, additions to schools, and major rehabilitation projects that exceed $25,000 and are submitted to the department for approval under AS 14.07.020(a)(11) before July 1, 1983, and approved by the qualified voters of the municipality before October 15, 1983, not to exceed a total project cost of (i) $6,600,000 if the annual growth rate of average daily membership of the municipality is more than seven percent but less than 12 percent, or (ii) $20,000,000 if the annual growth rate of average daily membership of the municipality is 12 percent or more; payments made by a municipality under this subparagraph on total project costs that exceed the amounts set out in (i) and (ii) of this subparagraph are subject to (5)(A) of this subsection;

     (5) subject to (h) — (j) of this section, 80 percent of
          (A) payments made by the municipality during the fiscal year for the retirement of principal and interest on outstanding bonds, notes, or other indebtedness authorized by the qualified voters of the municipality
               (i) after June 30, 1983, but before March 31, 1990, to pay costs of school construction, additions to schools, and major rehabilitation projects that exceed $25,000 and are approved under AS 14.07.020(a)(11); or

               (ii) before July 1, 1989, and reauthorized before November 1, 1989, to pay costs of school construction, additions to schools, and major rehabilitation projects that exceed $25,000 and are approved under AS 14.07.020(a)(11); and

          (B) cash payments made after June 30, 1983, by the municipality during the fiscal year two years earlier to pay costs of school construction, additions to schools, and major rehabilitation projects that exceed $25,000 and are approved by the department before July 1, 1990, under AS 14.07.020(a)(11);

     (6) subject to (h) — (j) and (m) of this section, 70 percent of payments made by the municipality during the fiscal year for the retirement of principal and interest on outstanding bonds, notes, or other indebtedness authorized by the qualified voters of the municipality on or after April 30, 1993, but before July 1, 1996, to pay costs of school construction, additions to schools, and major rehabilitation projects that exceed $200,000 and are approved under AS 14.07.020(a)(11);

     (7) subject to (h) — (j) and (m) of this section, 70 percent of payments made by the municipality during the fiscal year for the retirement of principal and interest on outstanding bonds, notes, or other indebtedness authorized by the qualified voters of the municipality after March 31, 1990, but before April 30, 1993, to pay costs of school construction, additions to schools, and major rehabilitation projects;

     (8) subject to (h), (i), (j)(2) — (5), and (n) of this section and after projects funded by the bonds, notes, or other indebtedness have been approved by the commissioner, 70 percent of payments made by the municipality during the fiscal year for the retirement of principal and interest on outstanding bonds, notes, or other indebtedness authorized by the qualified voters of the municipality on or after July 1, 1995, but before July 1, 1998, to pay costs of school construction, additions to schools, and major rehabilitation projects that exceed $200,000 and are approved under AS 14.07.020(a)(11);

     (9) subject to (h), (i), (j)(2) — (5), and (n) of this section and after projects funded by the bonds, notes, or other indebtedness have been approved by the commissioner, 70 percent of payments made by the municipality during the fiscal year for the retirement of principal and interest on outstanding bonds, notes, or other indebtedness authorized by the qualified voters of the municipality on or after July 1, 1998, but before July 1, 2006, to pay costs of school construction, additions to schools, and major rehabilitation projects that exceed $200,000 and are approved under AS 14.07.020(a)(11);

     (10) subject to (h), (i), (j)(2) — (5), and (o) of this section, and after projects funded by the bonds, notes, or other indebtedness have been approved by the commissioner, 70 percent of payments made by the municipality during the fiscal year for the retirement of principal and interest on outstanding bonds, notes, or other indebtedness authorized by the qualified voters of the municipality on or after June 30, 1998, to pay costs of school construction, additions to schools, and major rehabilitation projects that exceed $200,000, are approved under AS 14.07.020(a)(11), and are not reimbursed under (n) of this section;

     (11) subject to (h), (i), and (j)(2) — (5) of this section, and after projects funded by the bonds, notes, or other indebtedness have been approved by the commissioner, 70 percent of payments made by a municipality during the fiscal year for the retirement of principal and interest on outstanding bonds, notes, or other indebtedness authorized by the qualified voters of the municipality on or after June 30, 1999, but before January 1, 2005, to pay costs of school construction, additions to schools, and major rehabilitation projects and education-related facilities that exceed $200,000, are approved under AS 14.07.020(a)(11), and are not reimbursed under (n) or (o) of this section;

     (12) subject to (h), (i), and (j)(2), (3), and (5) of this section, 60 percent of payments made by a municipality during the fiscal year for the retirement of principal and interest on outstanding bonds, notes, or other indebtedness authorized by the qualified voters of the municipality on or after June 30, 1999, but before January 1, 2005, to pay costs of school construction, additions to schools, and major rehabilitation projects and education-related facilities that exceed $200,000, are reviewed under AS 14.07.020(a)(11), and are not reimbursed under (n) or (o) of this section;

     (13) subject to (h), (i), (j)(2) — (5), and (p) of this section, and after projects funded by the tax exempt bonds, notes, or other indebtedness have been approved by the commissioner, 70 percent of payments made by a municipality during the fiscal year for the retirement of principal and interest on outstanding tax exempt bonds, notes, or other indebtedness authorized by the qualified voters of the municipality on or after June 30, 1999, but before October 31, 2006, to pay costs of school construction, additions to schools, and major rehabilitation projects and education-related facilities that exceed $200,000, are approved under AS 14.07.020(a)(11), and are not reimbursed under (n) or (o) of this section;

     (14) subject to (h), (i), (j)(2), (3), and (5), and (p) of this section, 60 percent of payments made by a municipality during the fiscal year for the retirement of principal and interest on outstanding tax exempt bonds, notes, or other indebtedness authorized by the qualified voters of the municipality on or after June 30, 1999, but before October 31, 2006, to pay costs of school construction, additions to schools, and major rehabilitation projects and education-related facilities that exceed $200,000, are reviewed under AS 14.07.020(a)(11), and are not reimbursed under (n) or (o) of this section;

     (15) subject to (h), (i), (j)(2) — (5), and (q) of this section, and after projects funded by the bonds, notes, or other indebtedness have been approved by the commissioner, 90 percent of payments made by a municipality during the fiscal year for the retirement of principal and interest on outstanding bonds, notes, or other indebtedness authorized by the qualified voters of the municipality on or after June 30, 1999, but before October 31, 2006, to pay costs of school construction, additions to schools, and major rehabilitation projects and education-related facilities that exceed $200,000, are approved under AS 14.07.020(a)(11), meet the 10 percent participating share requirement for a municipal school district under the former participating share amounts required under AS 14.11.008(b), and are not reimbursed under (n) or (o) of this section;

     (16) subject to (h), (i), and (j)(2) — (5) of this section, and after projects funded by the tax exempt bonds, notes, or other indebtedness have been approved by the commissioner, 70 percent of payments made by a municipality during the fiscal year for the retirement of principal and interest on outstanding tax exempt bonds, notes, or other indebtedness authorized by the qualified voters of the municipality on or after October 1, 2006, but before January 1, 2015, to pay costs of school construction, additions to schools, and major rehabilitation projects and education-related facilities that exceed $200,000, are approved under AS 14.07.020(a)(11), and are not reimbursed under (o) of this section;

     (17) subject to (h), (i), and (j)(2), (3), and (5) of this section, 60 percent of payments made by a municipality during the fiscal year for the retirement of principal and interest on outstanding tax exempt bonds, notes, or other indebtedness authorized by the qualified voters of the municipality on or after October 1, 2006, but before January 1, 2015, to pay costs of school construction, additions to schools, and major rehabilitation projects and education-related facilities that exceed $200,000, are reviewed under AS 14.07.020(a)(11), and are not reimbursed under (o) of this section.

     (18) [Repealed, § 2, ch. 3, SLA 2015]
     (19) subject to (h), (i), and (j)(2) — (5) of this section, and after projects funded by the tax exempt bonds, notes, or other indebtedness have been approved by the commissioner, 50 percent of payments made by a municipality during the fiscal year for the retirement of principal of and interest on outstanding tax exempt bonds, notes, or other indebtedness authorized by the qualified voters of the municipality on or after July 1, 2020, to pay costs of school construction, additions to schools, and major rehabilitation projects and education-related facilities that exceed $200,000, are approved under AS 14.07.020(a)(11), and are not reimbursed under (o) of this section;

     (20) subject to (h), (i), and (j)(2), (3), and (5) of this section, 40 percent of payments made by a municipality during the fiscal year for the retirement of principal of and interest on outstanding tax exempt bonds, notes, or other indebtedness authorized by the qualified voters of the municipality on or after July 1, 2020, to pay costs of school construction, additions to schools, and major rehabilitation projects and education-related facilities that exceed $200,000, are reviewed under AS 14.07.020(a)(11), and are not reimbursed under (o) of this section.

 (b) The commissioner shall administer the program of reimbursement authorized under this section and shall provide by regulation for the filing of applications for reimbursement, the form of proof of costs for which application for reimbursement is made, and other regulations necessary to administer the program. An amount due a municipality for reimbursement under this section may not be reduced by the cost to the department to administer the reimbursement program. The commissioner shall exclude from the total school construction cost of the local district all state and federal funds included in these costs except funds provided under this section and AS 43.50.140.

 (c) The school construction account is established. Funds to carry out the provisions of this section shall be included within the appropriation bill authorizing capital expenditures submitted to the legislature under AS 37.07.020(a)(3) and may be appropriated annually by the legislature to the account. If amounts in the account are insufficient for the purpose of providing the share to which a borough or city is entitled under this section, those funds that are available shall be distributed pro rata among the eligible municipalities, except that the legislature may direct that additional debt service on refunding bonds that exceeds the total debt service on the refunded bonds be disregarded in whole or in part.

 (d) Money in the school construction account that at the end of the fiscal year for which the money is appropriated, exceeds the amount required for the allocations authorized in this section reverts to the general fund.

 (e) The commissioner shall annually prepare a report on allocations of state aid made under this section, including the amount of state aid paid on a per capita and per student basis and the resultant effect on the rate of levy of taxes by the municipality for educational purposes. The commissioner shall notify the legislature that the report is available.

 (f) [Repealed, § 17 ch 147 SLA 1978.]
 (g) [Repealed, § 47 ch 6 SLA 1984.]
 (h) An allocation under (a)(4), (5), (6), (7), (8), (9), or (10) of this section for school construction begun after July 1, 1982, shall be reduced by the amount of money used for the construction of residential space, hockey rinks, planetariums, saunas, and other facilities for single purpose sporting or recreational uses that are not suitable for other activities and by the money used for construction that exceeds the amount needed for construction of a facility of efficient design as determined by the department. An allocation under (a)(4), (5), (6), (7), (8), (9), or (10) of this section may not be reduced by the amount of money used for construction of a small swimming pool, tank, or water storage facility used for water sports. However, an allocation shall be reduced by the difference between the amount of money used to construct a swimming pool that exceeds the standards adopted by the department and the amount of money that would have been used to construct a small swimming pool, tank, or water storage facility, as determined by the commissioner.

 (i) For the purposes of (a)(4) — (10) of this section,
     (1) an indebtedness for bonds is incurred after the bonds are sold;

     (2) reimbursement for a cash payment may only be made after the payment is made to a vendor; and

     (3) payments may not be made for costs that are incurred under a contract after the contract has been released.

 (j) Except as provided in (l) of this section, the state may not allocate money to a municipality for a school construction project under (a)(5), (6), or (7) of this section unless the municipality complies with the requirements of (1) — (5) of this subsection, the project is approved by the commissioner before the local vote on the bond issue for the project or for bonds authorized after March 31, 1990, but on or before April 30, 1993, the bonds are approved by the commissioner before reimbursement by the state, and the local vote occurs before July 1, 1987, or after June 30, 1988. In approving a project under this subsection, and to the extent required under (a)(8) — (17) of this section, the commissioner shall require
     (1) the municipality to include on the ballot for the bond issue, for bonds authorized on or before March 31, 1990, or after April 30, 1993, the estimated total cost of each project including estimated total interest, estimated annual operation and maintenance costs, the estimated amounts that will be paid by the state and by the municipality, and the approximate amount that would be due in annual taxes on $100,000 in assessed value to retire the debt;

     (2) that the bonds may not be refunded unless the annual debt service on the refunding issue is not greater than the annual debt service on the original issue;

     (3) that the bonds must be repaid in approximately equal annual principal payments or approximately equal debt service payments over a period of at least 10 years;

     (4) the municipality to demonstrate need for the project by establishing that the school district has
          (A) projected long-term student enrollment that indicates the district has inadequate facilities to meet present or projected enrollment;

          (B) facilities that require repair or replacement in order to meet health and safety laws or regulations or building codes;

          (C) demonstrated that the project will result in a reduction in annual operating costs that economically justifies the cost of the project; or

          (D) facilities that require modification or rehabilitation for the purpose of improving the instructional program;

     (5) evidence acceptable to the department that the district
          (A) has a preventive maintenance plan that
               (i) includes a computerized maintenance management program, cardex system, or other formal systematic means of tracking the timing and costs associated with planned and completed maintenance activities, including scheduled preventive maintenance;

               (ii) addresses energy management for buildings owned or operated by the district;

               (iii) includes a regular custodial care program for buildings owned or operated by the district;

               (iv) includes preventive maintenance training for facility managers and maintenance employees; and

               (v) includes renewal and replacement schedules for electrical, mechanical, structural, and other components of facilities owned or operated by the district; and

          (B) is adequately following the preventive maintenance plan.

 (k) [Repealed, § 7 ch 115 SLA 2002.]
 (l) Bonds may be refunded without compliance with (j)(2) and (3) of this section if the refunding bonds are issued after June 30, 1987, and before January 1, 1989, and the time remaining for repayment on the original bonds is more than five years. The repayment term on refunding bonds may not exceed 20 years. For the purposes of determining the level of reimbursement, refunding bonds are considered to be issued as of the date of the first issue of bonds, notes, or other indebtedness or of the bonds that refund the bonds, whichever is later.

 (m) The total amount of school construction projects approved for reimbursement by the department under (a)(6) or (7) of this section
     (1) may not exceed $250,000,000; and

     (2) until July 1, 1996, shall be allocated as follows:
          (A) $133,000,000 shall be allocated to projects in a municipality with a population of 200,000 or more people;

          (B) $67,000,000 shall be allocated to projects in a municipality with a population of at least 60,000, but less than 200,000 people;

          (C) $50,000,000 shall be allocated to projects in a municipality with less than 60,000 people.

 (n) The total amount of school construction projects approved for reimbursement by the department under (a)(8) or (9) of this section
     (1) may not exceed $357,143,000; and

     (2) after June 30, 1995, and until July 1, 2006, shall be allocated as follows:
          (A) $154,286,000 shall be allocated to projects in a municipality with a public school enrollment of 25,000 or more students in fiscal year 1998, as determined under former AS 14.17.160;

          (B) $57,143,000 shall be allocated to projects in a municipality with a public school enrollment of at least 15,000 but less than 25,000 students in fiscal year 1998, as determined under former AS 14.17.160;

          (C) $145,714,000 shall be allocated to projects in a municipality with a public school enrollment of less than 15,000 students in fiscal year 1998, as determined under former AS 14.17.160; allocations under this subparagraph
               (i) shall first be made to projects described under (a)(8) of this section and then made to projects described under (a)(9) of this section; and

               (ii) may not exceed $16,000,000 to projects in a municipality with a public school enrollment of less than 4,000 students in fiscal year 1998, as determined under former AS 14.17.160.

 (o) The total amount of school construction projects approved for reimbursement by the department under (a)(10) of this section
     (1) may not exceed $190,644,901; and

     (2) after June 30, 1998, and until July 1, 2006, shall be allocated as follows:
          (A) $77,897,000 to projects in a municipality with a public school enrollment of 25,000 or more students in fiscal year 2000, as determined under AS 14.17.500;

          (B) $14,571,000 to projects in a municipality with a public school enrollment of at least 15,000 but less than 25,000 students in fiscal year 2000, as determined under AS 14.17.500;

          (C) $14,143,000 to projects in a municipality with a public school enrollment of at least 10,000 but less than 15,000 students in fiscal year 2000, as determined under AS 14.17.500;

          (D) $7,429,000 to projects in a municipality with a public school enrollment of at least 7,500 but less than 10,000 students in fiscal year 2000, as determined under AS 14.17.500;

          (E) $20,712,912 to projects in a municipality with a public school enrollment of at least 5,000 but less than 7,500 students in fiscal year 2000, as determined under AS 14.17.500;

          (F) $2,660,000 to projects in a municipality with a public school enrollment of at least 2,750 but less than 3,000 students in fiscal year 2000, as determined under AS 14.17.500;

          (G) $454,000 to projects in a municipality with a public school enrollment of at least 2,400 but less than 2,750 students in fiscal year 2000, as determined under AS 14.17.500;

          (H) $46,869,989 to projects in a municipality with a public school enrollment of at least 2,050 but less than 2,400 students in fiscal year 2000, as determined under AS 14.17.500;

          (I) $329,000 to projects in a municipality with a public school enrollment of at least 1,700 but less than 1,750 students in fiscal year 2000, as determined under AS 14.17.500;

          (J) $286,000 to projects in a municipality with a public school enrollment of at least 650 but less than 725 students in fiscal year 2000, as determined under AS 14.17.500;

          (K) $519,000 to projects in a municipality with a public school enrollment of at least 500 but less than 525 students in fiscal year 2000, as determined under AS 14.17.500;

          (L) $2,224,000 to projects in a municipality with a public school enrollment of at least 425 but less than 482 students in fiscal year 2000, as determined under AS 14.17.500;

          (M) $2,550,000 to projects in a municipality with a public school enrollment of at least 290 but less than 305 students in fiscal year 2000, as determined under AS 14.17.500.

 (p) The total amount of school construction projects approved for reimbursement by the department under (a)(13) and (a)(14) of this section
     (1) may not exceed $177,256,000;

     (2) after June 30, 1999, and until October 31, 2006, shall be allocated as follows:
          (A) $61,925,000 to projects in a municipality with a public school enrollment of 45,000 or more students in fiscal year 2005, as determined under AS 14.17.500;

          (B) $40,570,000 to projects in a municipality with a public school enrollment of at least 14,600 but less than 20,000 students in fiscal year 2005, as determined under AS 14.17.500;

          (C) $20,000,000 to projects in a municipality with a public school enrollment of at least 10,000 but less than 14,600 students in fiscal year 2005, as determined under AS 14.17.500;

          (D) $2,588,000 to projects in a municipality with a public school enrollment of at least 7,500 but less than 10,000 students in fiscal year 2005, as determined under AS 14.17.500;

          (E) $5,995,000 to projects in a municipality with a public school enrollment of at least 4,000 but less than 6,000 students in fiscal year 2005, as determined under AS 14.17.500;

          (F) $1,237,000 to projects in a municipality with a public school enrollment of at least 2,400 but less than 2,800 students in fiscal year 2005, as determined under AS 14.17.500;

          (G) $1,100,000 to projects in a municipality with a public school enrollment of at least 2,200 but less than 2,400 students in fiscal year 2005, as determined under AS 14.17.500;

          (H) $7,164,000 to projects in a municipality with a public school enrollment of at least 1,300 but less than 1,500 students in fiscal year 2005, as determined under AS 14.17.500;

          (I) $1,260,000 to projects in a municipality with a public school enrollment of at least 740 but less than 757 students in fiscal year 2005, as determined under AS 14.17.500;

          (J) $608,000 to projects in a municipality with a public school enrollment of at least 650 but less than 700 students in fiscal year 2005, as determined under AS 14.17.500;

          (K) $32,000,000 to projects in a municipality with a public school enrollment of at least 500 but less than 600 students in fiscal year 2005, as determined under AS 14.17.500;

          (L) $2,809,000 to projects in a municipality with a public school enrollment of at least 370 but less than 390 students in fiscal year 2005, as determined under AS 14.17.500.

 (q) The total amount of school construction projects approved for reimbursement by the department under (a)(15) of this section
     (1) may not exceed $14,644,000;

     (2) after June 30, 1999, and until October 31, 2006, shall be allocated as follows:
          (A) $6,522,000 to projects in a municipality with a public school enrollment of at least 1,925 but less than 2,025 students in fiscal year 2005, as determined under AS 14.17.500;

          (B) $8,122,000 to projects in a municipality with a public school enrollment of at least 398 but less than 400 students in fiscal year 2005, as determined under AS 14.17.500.

 (r) In this section, “outstanding bonds, notes, or other indebtedness” includes bonds issued to refund bonds, notes, or other indebtedness issued to pay costs of school construction or to refund bonds. Refunded bonds, notes, or other indebtedness are not considered outstanding.

 (s) Notwithstanding any other provision of law, the commissioner may not approve an application for bond debt reimbursement made by a municipality for school construction or major maintenance for indebtedness authorized by the qualified voters of the municipality on or after January 1, 2015, but before July 1, 2020.




Sec. 14.11.102. Allocation requests.
 (a) A request for an allocation of funds under AS 14.11.100 must be submitted to the department by the school district not later than October 15 of the fiscal year before the fiscal year for which the request is made.

 (b) The department shall evaluate projects for which retirement of school construction debt is requested. In evaluating projects for bond reimbursement as required under this section, the department shall evaluate all of the following factors, without establishing an absolute priority for any one factor:
     (1) emergency requirements;

     (2) priorities assigned by the district to the projects requested;

     (3) new local elementary and secondary facilities;

     (4) existing regional, community, and school facilities, and their condition; this paragraph does not include administrative facilities;

     (5) the amount of district operating funds expended for maintenance; and

     (6) other program options for accomplishing the project’s objectives.

 (c) The commissioner may not allocate funds to a municipality under AS 14.11.100 for the retirement of the principal of and interest on outstanding tax-exempt bonds, notes, or other indebtedness authorized by the qualified voters of the municipality on or after January 1, 2015, but before July 1, 2020.




Secs. 14.11.105 — 14.11.120. Public school facilities construction advance account. [Repealed, § 15 ch 5 SLA 1990.]

Article 2. Charter School Facilities.


Sec. 14.11.121. Supplemental charter school facilities construction, lease, and major maintenance grant program.
 (a) The department shall establish a charter school facilities construction, lease, and major maintenance grant program that supplements grant aid otherwise available under this chapter and that is based on a per pupil funding formula.

 (b) The department shall apply for available federal funding and award federal funding made available under the grant program established under (a) of this section for not more than five years for approved projects for charter school facilities construction, lease, or major maintenance as follows:
     (1) 90 percent of the allowable costs for the first fiscal year for the approved project;

     (2) 80 percent of the allowable costs for the second fiscal year for the approved project;

     (3) 60 percent of the allowable costs for the third fiscal year for the approved project;

     (4) 40 percent of the allowable costs for the fourth fiscal year for the approved project; and

     (5) 20 percent of the allowable costs for the fifth fiscal year for the approved project.

 (c) The grant program established in this section is subject to legislative appropriation and available funding and must be consistent with applicable federal and state requirements.

 (d) A school district or regional educational attendance area that submits an application for a proposed project under AS 14.11.011 for funding under this section that is approved for funding by the department shall provide a participating share that is equal to the difference between the allowable costs of a project and the combined available federal funding and the state aid provided under AS 14.11.126. Allowable costs for a project approved under this section shall be based on the adjusted student count for a charter school calculated under AS 14.17.450(a) and (c), as determined by the commissioner.




Sec. 14.11.125. Public school facilities construction advance account. [Repealed, § 15 ch 5 SLA 1990.]
Sec. 14.11.126. State aid for costs of charter school facilities construction, lease, and major maintenance.
During each fiscal year, the state shall allocate to a school district and regional educational attendance area that is approved for a charter school facilities construction, lease, or major maintenance grant under AS 14.11.121 an amount that is not less than $1 for each pupil enrolled in the charter school.


Article 3. General Provisions.


Sec. 14.11.130. Construction of chapter.
This chapter may not be construed to prevent a municipality that is a school district or a regional educational attendance area from using other revenue to include additional or expanded facilities as part of approved school construction projects.


Sec. 14.11.132. Regulations.
The department shall adopt regulations to carry out the purposes of this chapter.


Sec. 14.11.135. Definitions.
In this chapter, unless the context requires otherwise,
     (1) “approved school construction project” means the plan for a new school or an addition to or major rehabilitation of an existing school to the extent that the plan has been approved by the commissioner under AS 14.07.020(a)(11);

     (2) “capital improvement project” or “project” means school construction or major maintenance;

     (3) “costs of school construction” means the cost of acquiring, constructing, enlarging, repairing, remodeling, equipping, or furnishing of public elementary and secondary schools that are owned or operated by the state, a municipality, or a district and includes the sum total of all costs of financing and carrying out the project; these include the costs of all necessary studies, surveys, plans and specifications, architectural, engineering, or other special services, acquisition of real property, site preparation and development, purchase, construction, reconstruction, and improvement of real property and the acquisition of machinery and equipment that may be necessary in connection with the project; an allocable portion of the administrative and operating expenses of the grantee; the cost of financing the project, including interest on bonds issued to finance the project; and the cost of other items, including indemnity and surety bonds and premiums on insurance, legal fees, fees and expenses of trustees, depositaries, financial advisors, and paying agents for the bonds issued as the issuer considers necessary;

     (4) “district” means the districts described in AS 14.12.010;

     (5) “grant” means a grant under this chapter for school construction or for major maintenance;

     (6) “major maintenance” means a project described in AS 14.11.013(a)(1)(C), (D), or (E);

     (7) “school construction” means a project described in AS 14.11.013(a)(1)(A), (B), (F), or (G).




Article 1. Districts.


Chapter 12. Organization and Government of School System.

Sec. 14.12.010. Districts of state public school system.
The districts of the state public school system are as follows:
     (1) each home rule and first class city in the unorganized borough is a city school district;

     (2) each organized borough is a borough school district;

     (3) the area outside organized boroughs and outside home rule and first class cities is divided into regional educational attendance areas.




Sec. 14.12.020. Support, management, and control in general; military reservation schools.
 (a) Each regional educational attendance area shall be operated on an areawide basis under the management and control of a regional school board. The regional school board manages and controls schools on military reservations within its regional educational attendance area until the military mission is terminated or so long as management and control by the regional educational attendance area is approved by the department. However, operation of the military reservation schools by a city or borough school district may be required by the department under AS 14.14.110. If the military mission of a military reservation terminates or continued management and control by the regional educational attendance area is disapproved by the department, operation, management, and control of schools on the military reservation transfers to the city or borough school district in which the military reservation is located.

 (b) Each borough or city school district shall be operated on a district-wide basis under the management and control of a school board.

 (c) The legislature shall provide the state money necessary to maintain and operate the regional educational attendance areas. The borough assembly for a borough school district, and the city council for a city school district, shall provide the money that must be raised from local sources to maintain and operate the district.




Sec. 14.12.025. New school districts.
Notwithstanding any other provision of law, a new school district may not be formed if the total number of pupils for the proposed school district is less than 250 unless the commissioner of education and early development determines that formation of a new school district with less than 250 pupils would be in the best interest of the state and the proposed school district.


Article 2. School Boards.


Sec. 14.12.030. School boards.
 (a) Each borough and city school district with an average daily membership of 5,000 or less has a school board of five members, except that the governing body of the borough or city may by ordinance, concurred in by a majority of the district school board, provide for a school board of seven members.

 (b) Each borough and city school district with an average daily membership exceeding 5,000 has a school board of seven, nine, or eleven members, as established by ordinance.

 (c) The provisions of (a) and (b) of this section do not apply if the assembly serves as the school board of the borough school district.

 (d) The provisions of (a) and (b) of this section do not apply to a regional educational attendance area that converts to a city or borough school district. The number of school board members may be changed by the qualified voters in a district by placing the question on the ballot at a regular school board election in the manner prescribed by law.

 (e) Each city or borough school district that is operating schools on a military reservation under AS 14.12.020(a) has one nonvoting delegate from the military reservation or reservations to the school district board to advise and assist the board in matters relating to the military reservation schools operated by the school district and to act as liaison between the board and the military community. The nonvoting delegate shall be appointed by the school district board, shall serve at the pleasure of the school district board, and must be an inhabitant of the area served by the military reservation schools operated by the school district by contract. If an elected community school committee is established on a military reservation, the only inhabitants of that military reservation who are eligible for appointment as the nonvoting delegate are those inhabitants who are members of the elected school committee.




Sec. 14.12.035. Advisory school boards in borough school districts.
A borough school district board may establish advisory school boards, and by regulation shall prescribe their manner of selection, organization, powers, and duties.


Sec. 14.12.040. Transition from five to seven member board.
The transition from a five-member to a seven-member school board shall be made at the regular election following, or being held within 90 days preceding, the completion of the second regular school term during which the district maintains an average daily membership exceeding 5,000 or at the regular election following the effective date of an ordinance increasing board membership as provided in AS 14.12.030(a). Once the district has a seven-member school board, the number of members may not be changed.


Sec. 14.12.050. School board terms.
 (a) The term of office of a member of a borough or city school board is three years and until a successor takes office. However, the members of a newly created five-member school board hold office for initial terms as follows: two for a term of three years, two for a term of two years, and one for a term of one year, the terms being assigned to the members by lot. The members of a newly created seven-member school board hold office for initial terms as follows: three for a term of three years, two for a term of two years, and two for a term of one year, the terms being assigned to the members by lot.

 (b) When a transition is made from a five-member school board to a seven-member school board, the length of the terms of office for the two new members to be elected shall be determined by lot so that when the terms of office for the two new members are assigned, the terms of office for the entire seven-member board shall be as follows: three members have a three-year term, two members have a two-year term, and two members have a one-year term. A seven-member school board, the terms of office of whose members at the time of transition from a five-member board did not result in terms expiring in the manner provided in this section, may, by resolution adopted by a majority of the members of the board, adjust the terms of office to conform to the schedule for expiration of terms of office provided in this section.

 (c) Nothing in this section prevents school board members from succeeding themselves.




Sec. 14.12.070. Vacancies.
If a vacancy occurs on the school board, the remaining members shall within 30 days fill the vacancy. The person selected shall serve until the next regular election when a successor shall be elected to serve the balance of the term.


Sec. 14.12.080. Qualification of members.
To be eligible to be a member of a school board, a person must have the same qualifications as are necessary to be a municipal voter in the school district.


Sec. 14.12.090. Oath.
School board members, before taking office, shall take and sign the following oath or affirmation: “I do solemnly swear (or affirm) that I will support and defend the Constitution of the United States and the Constitution of the State of Alaska and that I will honestly, faithfully, and impartially discharge my duties as a school board member to the best of my ability.”


Sec. 14.12.100. Application.
AS 14.12.010 — 14.12.100 apply to home rule and general law municipalities.


Sec. 14.12.110. Single body as assembly and school board.
Notwithstanding the provisions of this chapter or other law, a single body may serve as both the assembly and school board in the manner provided for third class boroughs under AS 29.20.300(b), if
     (1) an ordinance for that purpose is approved by the assembly and ratified by a referendum of a majority of the qualified borough voters voting on the question at a regular or special election; and

     (2) the public school population within the borough is 500 pupils or less.




Sec. 14.12.115. Indemnification.
A school board shall insure or indemnify and protect the board, any member of the board, or any agent, employee, teacher, student teacher, officer, or member of the supervisory or administrative staff of the school district against financial loss and expense, including reasonable legal fees and costs arising out of any claim, demand, suit, or judgment by reason of alleged negligence, alleged violation of civil rights, or alleged wrongful act resulting in death or bodily injury to any person or accidental damage to or destruction of property, inside or outside the school premises, if the board member, agent, employee, teacher, student teacher, officer, or member of the supervisory or administrative staff, at the time of the occurrence, was acting under the direction of the school board within the course or scope of the duties of the board member, agent, employee, teacher, student teacher, officer, or member of the supervisory or administrative staff.


Sec. 14.12.120. Limited liability. [Repealed, § 4 ch 148 SLA 1978.]

Article 3. Regional Resource Centers.


Sec. 14.12.150. Establishment and purpose.
 (a) The districts of the state public school system may join together to establish regional resource centers to provide services, including the following: accounting, payroll, and other fiscal; media; instructional support; bilingual-bicultural educational; in-service and staff development; student; diagnostic; school management; and school board member training.

 (b) A regional resource center established under (a) of this section shall be governed by a board consisting of one representative from each participating district. The representative shall be appointed by the governing board of that district. The term of office of regional resource center board members shall be two years, beginning July 1 of each calendar year. Vacancies shall be filled in the same manner as original appointment.

 (c) Regional resource center boundaries shall be established by the board on recommendation of the commissioner of education and early development in the following seven regions of the state: southcentral and the Aleutian Chain, western, northwest, Bristol Bay, interior, southeast, and Kodiak. A district may not be included in more than one regional resource center area.

 (d) Regional resource center boards may receive and expend both public and private funds to operate a regional resource center.

 (e) Employees of the regional resource centers are not in the state service and are not subject to AS 39.25 (State Personnel Act). However, all regional resource center employees shall be members of either the teachers’ retirement system (AS 14.25) or the public employees’ retirement system (AS 39.35).




Sec. 14.12.160. Regional resource center board grant program; eligibility.
 (a) The department may make grants to regional resource center boards that qualify for the grants under the criteria set out in (b) of this section and regulations adopted by the department.

 (b) To qualify for a grant under (a) of this section, a regional resource center board shall
     (1) be organized under the provisions of AS 14.12.150;

     (2) adopt bylaws for its operation;

     (3) provide the department with a plan of operation including the following elements:
          (A) the bylaws adopted for its operation;

          (B) a list of participating districts, number of students, and professional staff to be served;

          (C) a schedule of funds available from federal, state, local, and private sources;

          (D) a description of the services and programs to be offered;

          (E) a description of the method by which these services and programs will be evaluated;

          (F) other information that may be required by the department by regulation;

     (4) comply with applicable regulations adopted by the department.




Sec. 14.12.170. Districts.
For purposes of AS 14.12.150 — 14.12.180, regional educational attendance areas shall be considered districts.


Sec. 14.12.180. Regulations.
The department may adopt regulations necessary to implement the provisions of AS 14.12.150 — 14.12.170.


Article 1. Operation of Districts.


Chapter 14. Local Administration of Schools.

Sec. 14.14.020. Bond required.
Before the officer responsible for custody, investment, or management of school district money enters upon the duties of office, the district, or the municipality if the treasury is centralized, shall obtain a bond with sufficient sureties in an amount equal to the money that may come into the officer’s official custody, but not to exceed $50,000. The bond shall be conditioned on the officer’s honest and faithful disbursement and accounting of all money that may come into the official custody of the officer. The bond shall be filed with the clerk of the school board. This section does not apply to an officer who has been bonded under AS 29.20.610.


Sec. 14.14.050. Annual audit.
 (a) The school board in each school district shall, before October 1 of each year, provide for an audit of all school accounts for the school year ending the preceding June 30. To make the audit the school board shall contract with a public accountant who has no personal interest, direct or indirect, in the fiscal affairs of the district. One certified copy of the audit shall be filed with the commissioner and one certified copy shall be posted in a public place at the principal administrative office of the district.

 (b) The audit shall conform in form to requirements established by the commissioner. The commissioner shall withhold all payments of state funds after November 15 to a school district that fails to file a certified copy of the audit with the department.

 (c) The commissioner may provide for a reaudit or an audit check in a school district if in the commissioner’s judgment it is necessary to substantiate the reported expenditures.

 (d) The school board shall not make the audit if an audit that satisfies the requirements of this section and that is filed and posted as required by this section is made according to AS 29.35.120.




Sec. 14.14.060. Relationship between borough school district and borough; finances and buildings.
 (a) The borough assembly may by ordinance require that all school money be deposited in a centralized treasury with all other borough money. The borough administrator shall have the custody of, invest, and manage all money in the centralized treasury. However, the borough assembly, with the consent of the borough school board, may by ordinance delegate to the borough school board the responsibility of a centralized treasury.

 (b) When the borough school board by resolution consents, the borough assembly may by ordinance provide a centralized accounting system for school and all other borough operations. The system shall be operated in accordance with accepted principles of governmental accounting. However, the assembly, with the consent of the borough school board, may by ordinance delegate to the borough school board the responsibilities of the accounting system.

 (c) Except as otherwise provided by municipal ordinance, the borough school board shall submit the school budget for the following school year to the borough assembly by May 1 for approval of the total amount. Within 30 days after receipt of the budget the assembly shall determine the total amount of money to be made available from local sources for school purposes and shall furnish the school board with a statement of the sum to be made available. If the assembly does not, within 30 days, furnish the school board with a statement of the sum to be made available, the amount requested in the budget is automatically approved. Except as otherwise provided by municipal ordinance, by June 30, the assembly shall appropriate the amount to be made available from local sources from money available for the purpose.

 (d) The borough assembly shall determine the location of school buildings with due consideration to the recommendations of the borough school board.

 (e) The borough school board is responsible for the design criteria of school buildings. To the maximum extent consistent with education needs, a design of a school building shall provide for multiple use of the building for community purposes. Subject to the approval of the assembly, the school board shall select the appropriate professional personnel to develop the designs. The school board shall submit preliminary and subsequent designs for a school building to the assembly for approval or disapproval; if the design is disapproved, a revised design shall be prepared and presented to the assembly. A design or revised design approved by the assembly shall be submitted by the board to the department in accordance with AS 14.07.020(a)(11).

 (f) The borough school board shall provide custodial services and routine maintenance for school buildings and shall appoint, compensate, and otherwise control personnel for these purposes. The borough assembly through the borough administrator, shall provide for all major rehabilitation, all construction and major repair of school buildings. The recommendations of the school board shall be considered in carrying out the provisions of this section.

 (g) State law relating to teacher salaries and tenure, to financial support, to supervision by the department and other general laws relating to schools, governs the exercise of the functions by the borough. The school board shall appoint, compensate, and otherwise control all school employees and administration officers in accordance with this title.

 (h) School boards within the borough may determine their own policy separate from the borough for the purchase of supplies and equipment.

 (i) Notwithstanding (e) and (f) of this section, a borough assembly and a borough school board may divide the duties imposed under (e) and (f) of this section by agreement between the borough assembly and borough school board.




Sec. 14.14.065. Relationship between city school district and city.
The relationships between the school board of a city school district and the city council and executive or administrator are governed in the same manner as provided in AS 14.14.060 for the school board of a borough school district and the borough assembly and executive or administrator.


Sec. 14.14.070. Organization of school board.
Within seven days after the certification of the results of each regular school election, the school board shall meet and elect one of its members as president, one as clerk, and, if necessary, one as treasurer.


Sec. 14.14.080. Declaring a school board vacancy.
When a member of a school board has notice of and is absent from three consecutive regular school board meetings and is not excused by the president of the school board, the other members of the school board may declare the position vacant and shall notify the ex-member by registered mail. The vacancy shall be filled as provided by AS 14.12.070.


Sec. 14.14.090. Duties of school boards.
In addition to other duties, a school board shall
     (1) determine and disburse the total amount to be made available for compensation of all school employees and administrative officers;

     (2) provide for, during the school term of each year, an educational program for each school age child who is enrolled in or a resident of the district;

     (3) withhold the salary for the last month of service of a teacher or administrator until the teacher or administrator has submitted all summaries, statistics, and reports that the school board may require by bylaws;

     (4) transmit, when required by the assembly or council but not more often than once a month, a summary report and statement of money expended;

     (5) keep the minutes of meetings and a record of all proceedings of the school board in a pertinent form;

     (6) keep the records and files of the school board open to inspection by the public at the principal administrative office of the district during reasonable business hours;

     (7) establish procedures for the review and selection of all textbooks and instructional materials, including textbooks and curriculum materials for statewide correspondence programs, before they are introduced into the school curriculum; the review includes a review for violations of AS 14.18.060; nothing in this paragraph precludes a correspondence study student, or the parent or guardian of a correspondence study student, from privately obtaining or using textbooks or curriculum material not provided by the school district;

     (8) provide prospective employees with information relating to the availability and cost of housing in rural areas to which they might be assigned, and, when possible, assist them in locating housing; however, nothing in this paragraph requires a school district to provide teacher housing, whether district owned, leased, rented, or through other means, nor does it require a school board to engage in a subsidy program of any kind regarding teacher housing;

     (9) train persons required to report under AS 47.17.020, in the recognition and reporting of child abuse, neglect, and sexual abuse of a minor;

     (10) provide for the development and implementation of a preventive maintenance program for school facilities; in this paragraph, “preventive maintenance” means scheduled maintenance actions that prevent the premature failure or extend the useful life of a facility, or a facility’s systems and components, and that are cost-effective on a life-cycle basis;

     (11) establish procedures for providing the training under AS 14.18.060, AS 14.20.149, 14.20.680, AS 14.30.355, 14.30.356, 14.30.362, AS 14.33.100, AS 18.66.310, and AS 47.17.022; the procedures established under this paragraph must include a training schedule that ensures that not less than 50 percent of the total certificated staff employed by the district receives all of the training not less than every two years and that all of the certificated staff employed by the district receive all of the training not less than every four years.




Sec. 14.14.100. Bylaws and administrative rules.
 (a) The school board policies relating to management and control of the district shall be expressed in written bylaws formally adopted at regular school board meetings.

 (b) Administrative rules that do not embody school district policy need not be adopted as bylaws; however, the rules must be in written form and readily available to all school personnel.




Sec. 14.14.105. Sick leave bank.
A school board may establish a sick leave bank to enable a teacher, because of unusual circumstances, to draw not more than twice the number of days of sick leave the teacher has accumulated before the first day of school in any school year, or 24 days, whichever is greater. However, in a case of severe illness or extreme hardship the board may permit a teacher to draw more leave. The board may establish and administer the sick leave bank independently or jointly with teachers.


Sec. 14.14.107. Sick leave and sick leave transfer.
 (a) Every school district shall allow its certificated employees one and one-third days of sick leave a month with unlimited accumulation of sick leave days.

 (b) A certificated school district employee who changes employment from one school district to another district, or from a school district to the department, or from the department to a school district, may transfer all of the cumulative sick leave to the new employer. It is the responsibility of the employee to notify the new employer, within 90 days of commencing work, of the number of days to be transferred.

 (c) The department may implement this section by regulation.




Sec. 14.14.110. Cooperation with other districts.
 (a) When necessary to provide more efficient or more economical educational services, a district may cooperate or the department may require a district to cooperate with other districts, state-operated schools, or the Bureau of Indian Affairs in providing educational or administrative services. However, if a cooperative arrangement requires pupils to live away from their usual homes, the school board shall provide classes within the attendance area when there are at least eight children eligible to attend elementary and secondary school in the attendance area. In this subsection,
     (1) “administrative services” includes supervisory, maintenance, purchasing, or other services that are required for unified administration;

     (2) “educational services” includes boarding and tuition arrangements, pupil or teacher exchanges, special education services, or curriculum development.

 (b) The department may prescribe the terms and conditions of any contract entered into under (a) of this section.

 (c) A contract for the operation of schools on military reservations by a city or borough school district under AS 14.12.020(a) and in (a) of this section must include, in addition to the terms and conditions prescribed by the department under (b) of this section, provisions for the following:
     (1) the educational program provided by the school district in the schools on the military reservation shall be comparable to the program provided by the school district in its nonmilitary reservation schools; and

     (2) the school district shall be fully reimbursed for the cost of operation of the schools on a military reservation.

 (d) The department shall annually prepare a report on the cooperative arrangements entered into under (a) of this section, and shall include in the report the estimated cost savings resulting from the cooperative arrangements. The department shall notify the legislature that the report is available.




Sec. 14.14.115. Cooperative arrangement grant program for school districts.
 (a) To encourage cooperative arrangements between school districts to provide more efficient or economical administrative or educational services, a school district may receive a one-time cooperative arrangement grant from the department of up to $100,000.

 (b) [Repealed, § 12 ch 42 SLA 1997.]
 (c) In this section,
     (1) “administrative services” and “educational services” have the meanings given in AS 14.14.110(a);

     (2) “district” has the meaning given in AS 14.17.990.




Sec. 14.14.120. Inoperative district.
 (a) When there are fewer than eight children eligible to attend elementary and secondary school in a district, the school board may declare the district inoperative for that school year.

 (b) During the school year in which a district is inoperative, the school board shall perform those functions necessary to preserve the financial integrity of the district, to preserve the property and assets of the district, and to otherwise ensure against disruption of the continuity of the district business.

 (c) An inoperative school board shall, if practicable, pay the tuition and boarding costs necessary to enable the school age children within the district to attend school in another district. If a child in an inoperative school district is not attending school in another district, the department shall provide information on correspondence courses and other materials and charge the school board of the inoperative district an amount equal to the actual cost to the department.

 (d) The terms of office of a school board are not affected by a declaration that the district is inoperative. However, new board members may not be elected during the time a district is inoperative. In the event more than three terms expire during the time a district is inoperative the functions of the school board shall be assumed by the assembly or council until the district becomes operative. When the district becomes operative an expired school board term shall be filled by the assembly or council until the next regular school election when a school board member shall be elected to serve the balance of the term.




Sec. 14.14.130. Chief school administrator.
 (a) A school board may select and employ a qualified person as the chief school administrator for the district. In this subsection, “employ” includes employment by contract.

 (b) If the district employs a chief school administrator, the administrator shall administer the district in accordance with the policies that the school board prescribes by bylaw.

 (c) If the district employs a chief school administrator, the administrator shall select, appoint, and otherwise control all school district employees that serve under the chief school administrator subject to the approval of the school board.

 (d) This section does not prohibit two or more school districts from sharing the services of a chief school administrator.




Sec. 14.14.140. Restriction on employment; compensation of board members.
 (a) While serving on the school board, a member may not be employed by that local school board. Members of the immediate family of a school board member may not be employed by the school board except upon written approval of the commissioner.

 (b) Members of the immediate family of a chief school administrator may not be employed by the chief school administrator except upon written approval of the school board.

 (c) A school board member may receive compensation for time spent in the performance of duties as a school board member if the compensation is authorized by resolution adopted by the school board. The restriction in (a) of this section does not apply to this compensation.




Sec. 14.14.150. Association of Alaska School Boards the representative agency of board members.
The Association of Alaska School Boards is recognized as the organization and representative agency of the members of the school boards of the state.


Sec. 14.14.160. Cooperation and support of certain association functions.
 (a) The department and local districts may cooperate with the Association of Alaska School Boards in its inservice training program for school board members and in encouraging and fostering cooperation among the school boards affiliated with the Association of Alaska School Boards.

 (b) School districts may expend district money to carry out the provisions of (a) of this section.




Secs. 14.14.170 — 14.14.200. Community school committees; qualifications of members and voters; terms of office and vacancies; duties. [Repealed, § 6 ch 24 SLA 1979.]

Article 2. Involvement of Young People in School Governance.


Sec. 14.14.250. Establishment of committee.
A school board may create a committee or other advisory body on the involvement of young people in school governance.


Sec. 14.14.260. Composition and chairman.
The committee may consist of not more than nine members, drawn from the fields of public affairs, education, the sciences, the professions, other fields of private endeavor, from the state or local service, and three additional members from the 17-22 age group, and shall include women and representatives of minority groups. The members shall be appointed by the board in the manner prescribed by the board without regard to political affiliation and shall serve at the pleasure of that body. One member shall be designated by the board as chairman of the committee.


Sec. 14.14.270. Compensation and per diem.
Members of the committee or other advisory body serve without compensation but are entitled to per diem and travel expenses as may be authorized by the board.


Sec. 14.14.280. Functions of the committee.
 (a) The committee shall establish procedures to enable it to recommend annually to the board a group of promising young men and women from whom the board may select interns and youth voting members of district committees or other advisory bodies. The committee, in establishing these procedures, shall enlist the aid of district residents who are actively interested in working with young people. Following adoption of the procedures, the committee shall accept applications from individuals and nominations for consideration, and shall interview all applicants or nominees.

 (b) Recommendations of the committee shall be limited to young people who
     (1) have a capacity, desire, interest, ability, and potential for leadership and service to the community and to the state;

     (2) will have attained the age of 17 but not the age of 22 before the beginning of their service.

 (c) Annually, the committee shall evaluate the program and shall submit a written report to the board.




Sec. 14.14.290. Interns.
An intern may be appointed to serve on the staff of the board or the district administrator for a period of time prescribed by the board, with a maximum of one year. An intern may be assigned responsibilities in any office, department, or agency of the district. Service begins at a time prescribed by the board. Interns shall be appointed without regard to political affiliation. Salaries shall be individually established by the board on the basis of prior experience and the responsibilities of the position to which the intern is assigned.


Sec. 14.14.300. Appointment to district committees or other advisory bodies.
 (a) Notwithstanding AS 39.05.100 or a provision of law relating to age, the board may appoint any 17-21 year old district resident to a district committee or advisory body if recommended by the youth involvement committee.

 (b) A young person recommended by the committee may be appointed to district committees or advisory bodies with special qualifications for membership if the proposed nominee meets the required qualifications set by law, except for age.

 (c) An individual appointed to a district committee or advisory body under this section is entitled to the rights, privileges, and responsibilities of other members, and the appointment is subject to confirmation by the board when required by law. An additional seat on a district committee or advisory body is not created by virtue of AS 14.14.250 — 14.14.310.




Sec. 14.14.310. Definitions.
In AS 14.14.250 — 14.14.310,
     (1) “board” means the governing body of a borough or city school district or regional educational attendance area;

     (2) “district” means a borough, city, or regional educational attendance area.




Chapter 15. School Districts and City Schools.

[Repealed, § 59 ch 98 SLA 1966.]

Article 1. State Boarding Schools.


Chapter 16. Special Schools.

Sec. 14.16.010. Establishment of state boarding schools.
The department may establish and operate boarding schools, to be managed in accordance with this chapter. A state boarding school must offer a secondary education curriculum to students enrolled in it, and must provide domiciliary services for students needing such services, if approved by the board.


Sec. 14.16.020. Operation of state boarding schools.
In the management of state boarding schools, the board shall
     (1) adopt a philosophy of education for state boarding schools;

     (2) approve the employment of personnel necessary to operate state boarding schools;

     (3) establish the salaries and benefits to be paid teachers, excluding administrators;

     (4) designate the employees authorized to direct disbursements from the money appropriated for the operation of state boarding schools and for the construction of facilities;

     (5) provide custodial services and routine maintenance of physical facilities;

     (6) establish procedures for the development and implementation of curriculum and the selection and use of textbooks and instructional materials;

     (7) prescribe health evaluation and placement screening programs for newly admitted students;

     (8) establish procedures for staff evaluation; and

     (9) establish procedures for providing the training under AS 14.18.060, AS 14.20.149, 14.20.680, AS 14.30.355, 14.30.356, 14.30.362, AS 14.33.100, AS 18.66.310, and AS 47.17.022; the procedures established under this paragraph must include a training schedule that ensures that not less than 50 percent of the total certificated staff employed by the district receive all of the training not less than every two years and that all of the certificated staff employed by the district receive all of the training not less than every four years.




Sec. 14.16.030. Admission to school.
 (a) A state boarding school may admit students who are qualified in accordance with applicable admission standards. Preference for enrollment must be given to students currently enrolled at a boarding school and to students whose educational, emotional, or family requirements warrant attendance in a domiciliary environment.

 (b) The board shall prescribe admission standards and procedures by regulation. Admission standards may not discriminate in favor of or against any resident based on race, sex, creed, national origin, or the location or type of residence within the state.




Sec. 14.16.040. Status of state boarding school.
A state boarding school is a public school of the state.


Sec. 14.16.050. Applicability of education laws.
 (a) The following provisions apply with respect to the operation and management of a state boarding school as if it were a school district:
     (1) requirements relating to school district operations:
          (A) AS 14.03.030 — 14.03.050 (defining the school term, day in session, and school holidays);

          (B) AS 14.03.083 — 14.03.140 (miscellaneous provisions applicable to school district operations);

          (C) regulations adopted by the board under authority of AS 14.07.020(a) that are applicable to school districts and their schools, unless the board specifically exempts state boarding schools from compliance with a regulation;

          (D) AS 14.12.150 (authorizing school districts to establish and participate in the services of a regional resource center);

          (E) AS 14.14.050 (imposing the requirement of an annual audit);

          (F) AS 14.14.110 (authorizing cooperation with other school districts);

          (G) AS 14.14.140(b) (establishing a prohibition on employment of a relative of the chief school administrator);

          (H) AS 14.18 (prohibiting discrimination based on sex in public education);

     (2) requirements relating to the public school funding program and the receipt and expenditure of that funding:
          (A) AS 14.17.500 (relating to student count estimates);

          (B) AS 14.17.505 (relating to school operating fund balances);

          (C) AS 14.17.500 — 14.17.910 (setting out the procedure for payment of public school funding and imposing general requirements and limits on money paid);

     (3) requirements relating to teacher employment and retirement:
          (A) AS 14.14.105 and 14.14.107 (relating to sick leave);

          (B) AS 14.20.095 — 14.20.215 (relating to the employment and tenure of teachers);

          (C) AS 14.20.220 (relating to the salaries of teachers employed);

          (D) AS 14.20.280 — 14.20.350 (relating to sabbatical leave provisions for teachers);

          (E) AS 23.40.070 — 23.40.260 (authorizing collective bargaining by certificated employees), except with regard to teachers who are administrators and except that the board may delegate some or all of its responsibilities under those statutes;

          (F) AS 14.25 (provisions regarding the teachers’ retirement system);

     (4) requirements relating to students and educational programs:
          (A) AS 14.30.180 — 14.30.350 (relating to educational services for children with disabilities);

          (B) AS 14.30.360 — 14.30.370 (establishing health education program standards);

          (C) AS 14.30.400 — 14.30.410 (relating to bilingual and bicultural education).

 (b) A person employed as a teacher at Mt. Edgecumbe High School on May 28, 1988, acquires tenure rights in accordance with AS 14.20.150 and 14.20.155 as though the person had been employed by a school district.




Sec. 14.16.060. Status of employees.
The employees of a state boarding school are state employees.


Sec. 14.16.070. Applicability of Public Employment Relations Act.
AS 23.40.070 — 23.40.260 (Public Employment Relations Act) apply to the employees of a state boarding school.


Sec. 14.16.080. Financial provisions applicable to state boarding school.
 (a) AS 14.17.440 applies to the calculation of public school funding payable for operation of a state boarding school.

 (b) In the transmittals required by AS 37.07.060 — 37.07.062, the governor shall request amounts for the expenses of construction, rehabilitation, and improvement of the facilities of a state boarding school.

 (c) Unless specified otherwise in any appropriation bill, AS 37.25.010 does not apply to an appropriation made for the purposes of (a) of this section.

 (d) AS 37.25.020 applies to money appropriated for the purposes of (b) of this section.

 (e) For purposes of application for and receipt of federal aid to education, a state boarding school constitutes a local educational agency.




Article 2. School Districts Operating Residential Schools.


Sec. 14.16.100. Application for residential school.
Before establishing a residential school, a school district shall apply to the department for approval to establish and operate a statewide or district-wide residential school. The department shall accept applications during an open application period conducted annually. A period of open application in itself does not indicate that the department will approve the establishment of a new residential school.


Sec. 14.16.200. State funding for districts operating residential schools.
 (a) A district that operates a statewide or district-wide residential school for students in grades nine through 12 that has been approved by the department under regulations adopted by the board is eligible to receive a boarding stipend as reimbursement for the costs incurred by the district in operating that school. To be eligible for reimbursement for costs, a statewide or district-wide residential school operated by a district must provide a suitable student dormitory, food service, and daily access to a public school offering the appropriate grade level for a variable-length or 180-day school term as provided under AS 14.03.030 for the full school year.

 (b) Costs that may be claimed by a district for reimbursement under (a) of this section are
     (1) one round trip on the least expensive means of transportation between the student’s community of residence and the school during the school year if the district expends money for the trip; and

     (2) a per-pupil monthly stipend to cover room and board expenses as determined by the department on a regional basis and not to exceed the following amounts:
          (A) for the Southeast Region (Region I), $1,230;

          (B) for the Southcentral Region (Region II), $1,200;

          (C) for the Interior Region (Region III), $1,452;

          (D) for the Southwest Region (Region IV), $1,509;

          (E) for the Northern Remote Region (Region V), $1,776.

 (c) [Repealed, § 4 ch 48 SLA 2013.]
 (d) A district may cooperate with an Alaska Native organization, as defined in 20 U.S.C. 7546(2), or a nonprofit organization for the provision of room and board services to students enrolled in a statewide or district-wide residential school operated by a district under terms and conditions required for licensing in the state and as specified by the department in regulation.

 (e) In this section, “district” has the meaning given in AS 14.17.990.




Article 1. State Aid to Public Schools.


Chapter 17. Financing of Public Schools.

Sec. 14.17.010. Public school foundation account. [Repealed, § 39 ch 83 SLA 1998.]
Sec. 14.17.020. State aid. [Repealed, § 1 ch 238 SLA 1970.]
Secs. 14.17.021 — 14.17.022. State foundation aid; money for centralized correspondence study. [Repealed, § 39 ch 83 SLA 1998.]
Sec. 14.17.023. Secondary formula account. [Repealed, § 25 ch 91 SLA 1987.]
Secs. 14.17.024 — 14.17.026. Money for state boarding schools; local contributions; supplementary state aid for regional educational attendance areas. [Repealed, § 39 ch 83 SLA 1998.]
Sec. 14.17.027. Revenue adjustment. [Repealed, § 25 ch 91 SLA 1987.]
Sec. 14.17.030. Required local effort. [Repealed, § 11 ch 95 SLA 1969.]
Sec. 14.17.031. Allowable instructional units. [Repealed, § 39 ch 83 SLA 1998.]
Sec. 14.17.040. Basic need. [Repealed, § 1 ch 238 SLA 1970.]
Secs. 14.17.041 — 14.17.047. Elementary and secondary, vocational, special and bilingual educational instructional units. [Repealed, § 39 ch 83 SLA 1998.]
Sec. 14.17.050. Teachers’ salary allotment. [Repealed, § 1 ch 238 SLA 1970.]
Secs. 14.17.051 — 14.17.056. Area cost differential; instructional unit value. [Repealed, § 39 ch 83 SLA 1998.]
Sec. 14.17.060. Average daily membership allotment. [Repealed, § 1 ch 238 SLA 1970.]
Sec. 14.17.061. Supplemental programs. [Repealed, § 25 ch 91 SLA 1987.]
Sec. 14.17.070. Attendance center allotment. [Repealed, § 1 ch 238 SLA 1970.]
Sec. 14.17.071. Required local effort. [Repealed, § 21 ch 26 SLA 1980.]
Sec. 14.17.075. Supplemental allocation. [Repealed, § 1 ch 238 SLA 1970.]
Sec. 14.17.080. Student count estimates. [Repealed, § 39 ch 83 SLA 1998.]
Sec. 14.17.081. Minimum expenditure for instruction. [Repealed, § 15 ch 75 SLA 1986.]
Sec. 14.17.082. Fund balance in school operating fund. [Repealed, § 39 ch 83 SLA 1998.]
Sec. 14.17.090. Estimated average daily membership. [Repealed, § 25 ch 91 SLA 1987.]
Secs. 14.17.100 — 14.17.120. Computation of teachers’ salary allotment, average daily membership allotment, and attendance center allotment. [Repealed, § 2 ch 238 SLA 1970.]
Sec. 14.17.130. Computation of required local effort. [Repealed, § 11 ch 95 SLA 1969.]
Sec. 14.17.139. [Renumbered as AS 14.12.025.]
Sec. 14.17.140. Determination of full and true value by Department of Community and Regional Affairs. [Repealed, § 39 ch 83 SLA 1998.]
Sec. 14.17.150. Duty of commissioner to examine and tabulate computations. [Repealed, § 25 ch 91 SLA 1987.]
Secs. 14.17.160 — 14.17.170. Student counting periods; distribution of state foundation aid. [Repealed, § 39 ch 83 SLA 1998.]
Sec. 14.17.180. Payment under final computation. [Repealed, § 25 ch 91 SLA 1987.]
Sec. 14.17.190. Restrictions governing receipt and expenditure of money from public school foundation account. [Repealed, § 39 ch 83 SLA 1998.]
Sec. 14.17.200. Regulations. [Repealed, § 39 ch 83 SLA 1998.]
Sec. 14.17.205. State aid to districts operating approved school food service programs. [Repealed, § 25 ch 91 SLA 1987.]
Sec. 14.17.210. State aid to newly established district schools. [Repealed, § 39 ch 83 SLA 1998.]
Sec. 14.17.215. State aid to districts affected by state activities. [Repealed, § 20 ch 26 SLA 1980.]
Secs. 14.17.220 — 14.17.225. Purpose; construction and implementation of chapter; pro rata reductions. [Repealed, § 39 ch 83 SLA 1998.]
Secs. 14.17.230 — 14.17.240. Transition; repealer. [Repealed, § 2 ch 71 SLA 1972.]
Sec. 14.17.250. Definitions. [Repealed, § 39 ch 83 SLA 1998.]
Sec. 14.17.300. Public education fund.
 (a) The public education fund is established. The fund consists of appropriations for
     (1) distribution to school districts, to the state boarding school, and for centralized correspondence study under this chapter; and

     (2) transportation of pupils under AS 14.09.010.

 (b) Money appropriated to the fund may be expended without further appropriation. Money appropriated to the fund does not lapse. The money in the fund may be expended only in aid of public schools and for centralized correspondence study programs under this chapter and for transportation of pupils under AS 14.09.010. Interest earned on money held in the fund before expenditure may be appropriated to the fund by the legislature.




Sec. 14.17.400. State aid for districts.
 (a) The state aid for which a school district is eligible in a fiscal year is equal to the amount for which a district qualifies under AS 14.17.410.

 (b) If the amount appropriated to the public education fund for purposes of this chapter is insufficient to meet the amounts authorized under (a) of this section for a fiscal year, the department shall reduce pro rata each district’s basic need by the necessary percentage as determined by the department. If the basic need of each district is reduced under this subsection, the department shall also reduce state funding for centralized correspondence study and the state boarding school by the same percentage.




Sec. 14.17.410. Public school funding.
 (a) A district is eligible for public school funding in an amount equal to the sum calculated under (b) and (c) of this section.

 (b) Public school funding consists of state aid, a required local contribution, and eligible federal impact aid determined as follows:
     (1) state aid equals basic need minus a required local contribution and 90 percent of eligible federal impact aid for that fiscal year; basic need equals the sum obtained under (D) of this paragraph, multiplied by the base student allocation set out in AS 14.17.470; district adjusted ADM is calculated as follows:
          (A) the ADM of each school in the district is calculated by applying the school size factor to the student count as set out in AS 14.17.450;

          (B) the number obtained under (A) of this paragraph is multiplied by the district cost factor described in AS 14.17.460;

          (C) the ADMs of each school in a district, as adjusted according to (A) and (B) of this paragraph, are added; the sum is then multiplied by the special needs factor set out in AS 14.17.420(a)(1) and the secondary school vocational and technical instruction funding factor set out in AS 14.17.420(a)(3);

          (D) the number obtained for intensive services under AS 14.17.420(a)(2) and the number obtained for correspondence study under AS 14.17.430 are added to the number obtained under (C) of this paragraph;

          (E) notwithstanding (A) — (C) of this paragraph, if a school district’s ADM adjusted for school size under (A) of this paragraph decreases by five percent or more from one fiscal year to the next fiscal year, the school district may use the last fiscal year before the decrease as a base fiscal year to offset the decrease, according to the following method:
               (i) for the first fiscal year after the base fiscal year determined under this subparagraph, the school district’s ADM adjusted for school size determined under (A) of this paragraph is calculated as the district’s ADM adjusted for school size, plus 75 percent of the difference in the district’s ADM adjusted for school size between the base fiscal year and the first fiscal year after the base fiscal year;

               (ii) for the second fiscal year after the base fiscal year determined under this subparagraph, the school district’s ADM adjusted for school size determined under (A) of this paragraph is calculated as the district’s ADM adjusted for school size, plus 50 percent of the difference in the district’s ADM adjusted for school size between the base fiscal year and the second fiscal year after the base fiscal year;

               (iii) for the third fiscal year after the base fiscal year determined under this subparagraph, the school district’s ADM adjusted for school size determined under (A) of this paragraph is calculated as the district’s ADM adjusted for school size, plus 25 percent of the difference in the district’s ADM adjusted for school size between the base fiscal year and the third fiscal year after the base fiscal year;

          (F) the method established in (E) of this paragraph is available to a school district for the three fiscal years following the base fiscal year determined under (E) of this paragraph only if the district’s ADM adjusted for school size determined under (A) of this paragraph for each fiscal year is less than the district’s ADM adjusted for school size in the base fiscal year;

          (G) the method established in (E) of this paragraph does not apply to a decrease in the district’s ADM adjusted for school size resulting from a loss of enrollment that occurs as a result of a boundary change under AS 29;

     (2) the required local contribution of a city or borough school district is the equivalent of a 2.65 mill tax levy on the full and true value of the taxable real and personal property in the district as of January 1 of the second preceding fiscal year, as determined by the Department of Commerce, Community, and Economic Development under AS 14.17.510 and AS 29.45.110, not to exceed 45 percent of a district’s basic need for the preceding fiscal year as determined under (1) of this subsection.

 (c) In addition to the local contribution required under (b)(2) of this section, a city or borough school district in a fiscal year may make a local contribution of not more than the greater of
     (1) the equivalent of a two mill tax levy on the full and true value of the taxable real and personal property in the district as of January 1 of the second preceding fiscal year, as determined by the Department of Commerce, Community, and Economic Development under AS 14.17.510 and AS 29.45.110; or

     (2) 23 percent of the total of the district’s basic need for the fiscal year under (b)(1) of this section and any additional funding distributed to the district in a fiscal year according to (b) of this section.

 (d) State aid may not be provided to a city or borough school district if the local contributions required under (b)(2) of this section have not been made.

 (e) If a city or borough school district is established after July 1, 1998, for the first three fiscal years in which the city or borough school district operates schools, local contributions may be less than the amount that would otherwise be required under (b)(2) of this section, except that
     (1) in the second fiscal year of operations, local contributions must be at least the greater of
          (A) the local contributions, excluding federal impact aid, for the previous fiscal year; or

          (B) the sum of 10 percent of the district’s eligible federal impact aid for that year and the equivalent of a one mill tax levy on the full and true value of the taxable real and personal property in the city or borough school district as of January 1 of the second preceding fiscal year, as determined by the Department of Commerce, Community, and Economic Development under AS 14.17.510 and AS 29.45.110; and

     (2) in the third year of operation, local contributions must be at least the greater of
          (A) the local contributions, excluding federal impact aid, for the previous fiscal year; or

          (B) the sum of 10 percent of the district’s eligible federal impact aid for that year and the equivalent of a two mill tax levy on the full and true value of the taxable real and personal property in the district as of January 1 of the second preceding fiscal year, as determined by the Department of Commerce, Community, and Economic Development under AS 14.17.510 and AS 29.45.110.

 (f) A school district is eligible for additional state aid in the amount by which the local contributions that would otherwise have been required under (b)(2) of this section exceed the district’s actual local contributions under (e) of this section.




Sec. 14.17.420. Funding for special needs, secondary school vocational and technical instruction, and intensive services.
 (a) As a component of public school funding, a district is eligible for special needs and secondary school vocational and technical instruction funding and may be eligible for intensive services funding as follows:
     (1) special needs funding is available to a district to assist the district in providing special education, gifted and talented education, vocational education, and bilingual education services to its students; a special needs funding factor of 1.20 shall be applied as set out in AS 14.17.410(b)(1);

     (2) in addition to the special needs funding for which a district is eligible under (1) of this subsection, a district is eligible for intensive services funding for each special education student who needs and receives intensive services and is enrolled on the last day of the count period; for each such student, intensive services funding is equal to the intensive student count multiplied by 13;

     (3) in addition to the special needs and intensive services funding available under (1) and (2) of this subsection, secondary school vocational and technical instruction funding is available to assist districts in providing vocational and technical instruction to students who are enrolled in a secondary school; a secondary school vocational and technical instruction funding factor of 1.015 shall be applied as set out in AS 14.17.410(b)(1); in this paragraph, “vocational and technical instruction” excludes costs associated with
          (A) administrative expenses; and

          (B) instruction in general literacy, mathematics, and job readiness skills.

 (b) If a district offers special education, gifted and talented education, vocational education, or bilingual education services, in order to receive funding under (a)(1) of this section, the district must file with the department a plan that indicates the services that will be provided to students who receive these services.

 (c) In this section, “intensive services” has the meaning given by the department by regulation adopted under AS 14.30.180 — 14.30.350.




Sec. 14.17.430. State funding for correspondence study.
Except as provided in AS 14.17.400(b), funding for the state centralized correspondence study program or a district correspondence program, including a district that offers a statewide correspondence study program, includes an allocation from the public education fund in an amount calculated by multiplying the ADM of the correspondence program by 90 percent.


Sec. 14.17.440. State funding for state boarding schools.
 (a) Except as provided in AS 14.17.400(b), funding for state boarding schools established under AS 14.16.010 includes an allocation from the public education fund in an amount calculated by
     (1) determining the ADM of state boarding schools by applying the school size factor to the student count as described in AS 14.17.450;

     (2) multiplying the number obtained under (1) of this subsection by the special needs factor in AS 14.17.420(a)(1) and the secondary school vocational and technical instruction funding factor set out in AS 14.17.420(a)(3) and multiplying that product by the base student allocation; and

     (3) multiplying the product determined under (2) of this subsection by the district cost factor that is applicable to calculation of the state aid for the adjacent school district under AS 14.17.460.

 (b) State boarding schools are also eligible for intensive services funding under AS 14.17.420(a)(2).




Sec. 14.17.450. School size factor.
 (a) For purposes of calculating a school’s ADM to determine state aid, the ADM of each school in a district shall be computed by applying the following formula:


If the student count in a school is     The adjusted student count is     At least          But less than     Base          Multiplier          The number of students in excess of      10     -     20     39.6                          20     -     30     39.6     +     (1.62     x     20)      30     -     75     55.8     +     (1.49     x     30)      75     -     150     122.85     +     (1.27     x     75)     150     -     250     218.1     +     (1.08     x     150)     250     -     400     326.1     +     (0.97     x     250)     400     -     750     471.6     +     (0.92     x     400)     750 or over               793.6     +     (0.84     x     750).      (b) If the ADM in a school is less than 10, those students shall be included in the ADM of the school in that district with the lowest ADM as determined by the most recent student count data for that district.

 (c) Except as provided in (d) of this section, if the student count in a charter school is less than 150, the adjusted student count for the school shall be calculated by multiplying the student count by the student rate for a school that has a student count of 400.

 (d) If a charter school has a student count of at least 75 but less than 150 for the current year and is in the first three years of operation or had a student count of at least 75 in the previous year of operation,
     (1) the adjusted student count for the school shall be calculated by multiplying the student count by the student rate for a school that has a student count of 150; and

     (2) not later than February 15, the charter school shall submit for approval of the governing board of the district a plan for the following school year that includes a statement about whether the school will continue to operate if the student count remains the same that year and, if so, a projection of the funding anticipated from the state and other sources, a proposed budget, and a description of anticipated changes to the school staff, program, and curriculum; if the school intends to close if the student count remains the same the following year, the plan must describe transfer plans for students, staff, facilities, and materials.

 (e) If an alternative school has a student count of more than 120 but less than 175 for the current year and is in the first year of operation or had a student count of 175 or more in the previous year of operation, the adjusted student count for the school shall be calculated by multiplying the student count by 95 percent of the student rate for a school that has a student count of 175.

 (f) In (c) — (e) of this section, “student rate” is calculated by adding the base and the multiplier provided under (a) of this section and dividing the sum by the student count.




Sec. 14.17.460. District cost factors.
 (a) For purposes of calculating a district’s adjusted ADM under AS 14.17.410(b)(1), the district cost factor for a school district is (1) for the fiscal year ending June 30, 2009, the factor set out under column (A) of this subsection, (2) for the fiscal year ending June 30, 2010, the factor set out under column (B) of this subsection, (3) for the fiscal year ending June 30, 2011, the factor set out under column (C) of this subsection, (4) for the fiscal year ending June 30, 2012, the factor set out under column (D) of this subsection, and (5) for fiscal years ending on or after June 30, 2013, the factor set out under column (E) of this subsection:


     DISTRICT COST FACTOR     DISTRICT     (A)     (B)     (C)     (D)     (E)                                   Alaska Gateway     1.443     1.481     1.519     1.557     1.594     Aleutians East     1.707     1.778     1.849     1.920     1.991     Aleutians Region     1.838     1.864     1.890     1.916     1.939     Anchorage     1.000     1.000     1.000     1.000     1.000     Annette Island     1.175     1.216     1.257     1.298     1.338     Bering Strait     1.762     1.821     1.880     1.939     1.998     Bristol Bay     1.370     1.397     1.424     1.451     1.478     Chatham     1.348     1.405     1.462     1.519     1.576     Chugach     1.395     1.420     1.445     1.470     1.496     Copper River     1.246     1.264     1.282     1.300     1.316     Cordova     1.165     1.182     1.199     1.216     1.234     Craig     1.108     1.133     1.158     1.183     1.206     Delta/Greely     1.174     1.191     1.208     1.225     1.241     Denali     1.323     1.326     1.329     1.332     1.332     Dillingham     1.300     1.312     1.324     1.336     1.346     Fairbanks     1.055     1.059     1.063     1.067     1.070     Galena     1.370     1.376     1.382     1.388     1.391     Haines     1.104     1.128     1.152     1.176     1.200     Hoonah     1.227     1.270     1.313     1.356     1.399     Hydaburg     1.295     1.348     1.401     1.454     1.504     Iditarod     1.658     1.705     1.752     1.799     1.846     Juneau     1.075     1.093     1.111     1.129     1.145     Kake     1.242     1.296     1.350     1.404     1.459     Kashunamiut     1.504     1.533     1.562     1.591     1.619     Kenai Peninsula     1.088     1.109     1.130     1.151     1.171     Ketchikan     1.085     1.106     1.127     1.148     1.170     Klawock     1.160     1.196     1.232     1.268     1.302     Kodiak Island     1.191     1.216     1.241     1.266     1.289     Kuspuk     1.584     1.622     1.660     1.698     1.734     Lake and Peninsula     1.776     1.831     1.886     1.941     1.994     Lower Kuskokwim     1.577     1.599     1.621     1.643     1.663     Lower Yukon     1.650     1.703     1.756     1.809     1.861     Matanuska-Susitna     1.040     1.048     1.056     1.064     1.070     Mt. Edgecumbe     1.098     1.123     1.148     1.173     1.195     Nenana     1.304     1.313     1.322     1.331     1.338     Nome     1.385     1.402     1.419     1.436     1.450     North Slope     1.648     1.684     1.720     1.756     1.791     Northwest Arctic     1.686     1.720     1.754     1.788     1.823     Pelican     1.384     1.408     1.432     1.456     1.477     Petersburg     1.122     1.153     1.184     1.215     1.244     Pribilof     1.555     1.589     1.623     1.657     1.691     Sitka     1.098     1.123     1.148     1.173     1.195     Skagway     1.159     1.163     1.167     1.171     1.174     Southeast Island     1.264     1.299     1.334     1.369     1.403     Southwest Region     1.554     1.587     1.620     1.653     1.685     St. Mary”s     1.488     1.522     1.556     1.590     1.624     Tanana     1.641     1.677     1.713     1.749     1.786     Unalaska     1.343     1.368     1.393     1.418     1.441     Valdez     1.133     1.143     1.153     1.163     1.170     Wrangell     1.080     1.100     1.120     1.140     1.159     Yakutat     1.229     1.275     1.321     1.367     1.412     Yukon Flats     1.892     1.948     2.004     2.060     2.116     Yukon/Koyukuk     1.669     1.711     1.753     1.795     1.835     Yupiit     1.596     1.628     1.660     1.692     1.723.      (b) The department shall monitor the cost factors established under (a) of this section and shall prepare and submit to the legislature by January 15 of every other fiscal year proposed district cost factors.




Sec. 14.17.470. Base student allocation.
The base student allocation is $5,930.


Sec. 14.17.480. Quality school funding.
 (a) As a component of public school funding, a district is eligible to receive a quality school funding grant not to exceed the district’s adjusted ADM multiplied by $16. The department shall by regulation establish a grant process to implement this section.

 (b) For purposes of the reduction required under AS 14.17.400(b), funding authorized under (a) of this section is treated the same as the state share of public school funding under AS 14.17.410.




Sec. 14.17.490. Public school funding adjustments.
 (a) Except as provided in (b) — (e) of this section, if, in fiscal year 1999, a city or borough school district or a regional educational attendance area would receive less public school funding under AS 14.17.410 than the district or area would have received as state aid, the district or area is, in each fiscal year, eligible to receive additional public school funding equal to the difference between the public school funding the district or area was eligible to receive under AS 14.17.410 in fiscal year 1999 and the state aid the district or area would have received in fiscal year 1999.

 (b) A city or borough school district is not eligible for additional funding authorized under (a) of this section unless, during the fiscal year in which the district receives funding under (a) of this section, the district received a local contribution equal to at least the equivalent of a 2.65 mill tax levy on the full and true value of the taxable real and personal property in the district as of January 1 of the second preceding fiscal year as determined by the Department of Commerce, Community, and Economic Development under AS 14.17.510 and AS 29.45.110.

 (c) For the purposes of the reduction required under AS 14.17.400(b), funding authorized under (a) of this section is treated the same as the state share of public school funding under AS 14.17.410.

 (d) Beginning in fiscal year 2000, if a district receives more public school funding under AS 14.17.410 than the district received in the preceding fiscal year, any amount received by the district under this section shall be reduced. The amount of the reduction required under this subsection is equal to the amount of increase from the preceding fiscal year in public school funding multiplied by 40 percent. In this subsection, “public school funding” does not include funding under this section.

 (e) Beginning in fiscal year 2000, in each fiscal year, the department shall compare each district’s ADM with the district’s ADM in fiscal year 1999. If the current fiscal year ADM is less than 95 percent of the district’s ADM in fiscal year 1999, the department shall reduce the district’s public school funding calculated under (a) of this section by a percentage equal to the percentage of decrease in the district’s ADM.

 (f) For purposes of this section, “state aid” means state aid distributed under the provisions of AS 14.17, as those provisions read on January 1, 1998, and additional district support appropriated by the legislature for fiscal year 1998.




Article 2. Preparation of Public School Funding Budget.


Sec. 14.17.500. Student count estimate.
 (a) A district shall prepare and submit to the department by November 5 of each fiscal year, in the manner and on forms prescribed by the department, an estimate of its ADM and other student count data, including per school student count data, for the succeeding fiscal year upon which computations can be made to estimate the amount of state aid for which the district may be eligible under AS 14.17.400 in the succeeding fiscal year. In making its report, the district shall consider its ADM, other student count data, the pattern of growth or decline of the student population in preceding years, and other pertinent information available to the district.

 (b) Part-time students shall be included in the student count data in accordance with regulations adopted by the department.

 (c) When reporting a district’s ADM, a part-time student who is a correspondence student may not be counted as more than one full-time equivalent student.




Sec. 14.17.505. Fund balance in school operating fund.
 (a) A district may not accumulate in a fiscal year an unreserved portion of its year-end fund balance in its school operating fund, as defined by department regulations, that is greater than 10 percent of its expenditures for that fiscal year.

 (b) The department shall review each district’s annual audit under AS 14.14.050 for the preceding fiscal year to ascertain its year-end operating fund balance. The amount by which the unreserved portion of that balance exceeds the amount permitted in (a) of this section shall be deducted from the state aid that would otherwise be paid to the district in the current fiscal year.




Sec. 14.17.510. Determination of full and true value by Department of Commerce, Community, and Economic Development.
 (a) To determine the amount of required local contribution under AS 14.17.410(b)(2) and to aid the department and the legislature in planning, the Department of Commerce, Community, and Economic Development, in consultation with the assessor for each district in a city or borough, shall determine the full and true value of the taxable real and personal property in each district in a city or borough. If there is no local assessor or current local assessment for a city or borough school district, then the Department of Commerce, Community, and Economic Development shall make the determination of full and true value guided by AS 29.45.110 and based on a determination of full and true value made by the state assessor at least every two years using the best information available, including on-site inspections made by the state assessor in each of those districts at least once every four years. For purposes of this subsection, the full and true value of taxable real and personal property in any area detached shall be excluded from the determination of the full and true value of the municipality from which the property was detached for the two years immediately preceding the effective date of the detachment. Also, in making the determination for a municipality that is a school district, or for a city that is within a borough school district, the assessed value of property taxable under AS 43.56 shall be excluded if a tax is not levied under AS 29.45.080 by the municipality that is the school district. The determination of full and true value shall be made by October 1 and sent by certified mail, return receipt requested, on or before that date to the president of the school board in each city or borough school district. Duplicate copies shall be sent to the commissioner. The governing body of a city or borough that is a school district may obtain judicial review of the determination. The superior court may modify the determination of the Department of Commerce, Community, and Economic Development only upon a finding of abuse of discretion or upon a finding that there is no substantial evidence to support the determination.

 (b) Motor vehicles subject to the motor vehicle registration tax under AS 28.10.431 shall be treated as taxable property under this section.

 (c) [Repealed, § 8 ch 19 SLA 2012.]




Sec. 14.17.520. Minimum expenditure for instruction.

Article 3. Procedure for Payments of State Aid.


Sec. 14.17.600. Student count periods.
 (a) Within two weeks after the end of the 20-school-day period ending the fourth Friday in October, each district shall transmit a report to the department that, under regulations adopted by the department, reports its ADM for that count period and other student count information that will aid the department in making a determination of its state aid under the public school funding program. For centralized correspondence study, the October report shall be based on the period from July 1 through the fourth Friday in October. The department may make necessary corrections in the report submitted and shall notify the district of changes made. The commissioner shall notify the governor of additional appropriations the commissioner estimates to be necessary to fully finance the public school funding program for the current fiscal year.

 (b) Upon written request and for good cause shown, the commissioner may permit a district to use a 20-school-day count period other than the period set out in (a) of this section. However, a count period approved under this subsection must be 20 consecutive school days unless one or more alternate count periods are necessary to permit a district to implement flexible scheduling that meets the district’s needs and goals without jeopardizing the state aid for which the district would ordinarily be eligible under this chapter.




Sec. 14.17.610. Distribution of state aid.
 (a) The department shall determine the state aid for each school district in a fiscal year on the basis of the district’s student count data reported under AS 14.17.600. On or before the 15th day of each of the first nine months of each fiscal year, one-twelfth of each district’s state aid shall be distributed on the basis of the data reported for the preceding fiscal year. On or before the 15th day of each of the last three months of each fiscal year, one-third of the balance of each district’s state aid shall be distributed, after the balance has been recomputed on the basis of student count and other data reported for the current fiscal year.

 (b) Distribution of state aid under (a) of this section shall be made as required under AS 14.17.410. If a district receives more state aid than it is entitled to receive under this chapter, the district shall immediately remit the amount of overpayment to the commissioner, to be returned to the public education fund. The department may make adjustments to a district’s state aid to correct underpayments made in previous fiscal years.

 (c) Upon an adequate showing of a cash flow shortfall of a district, and in the discretion of the commissioner, the department may make advance payments to a district. The total of advance payments may not exceed the amount of state aid for which the district is eligible for the fiscal year.




Article 4. General Provisions.


Sec. 14.17.900. Construction and implementation of chapter.
 (a) This chapter does not create a debt of the state. Each district shall establish, maintain, and operate under a balanced budget. The state is not responsible for the debts of a school district.

 (b) Money to carry out the provisions of this chapter may be appropriated annually by the legislature into the public education fund. If the amount appropriated to the fund for the purposes of this chapter is insufficient to meet the allocations authorized under AS 14.17.400 — 14.17.470 for a fiscal year, state aid shall be reduced according to AS 14.17.400(b).




Sec. 14.17.905. Facilities constituting a school.
 (a) For purposes of this chapter, the determination of the number of schools in a district is subject to the following:
     (1) a community with an ADM of at least 10, but not more than 100, shall be counted as one school;

     (2) a community with an ADM of at least 101, but not more than 425, shall be counted as
          (A) one elementary school, which includes those students in grades kindergarten through six; and

          (B) one secondary school, which includes students in grades seven through 12;

     (3) in a community with an ADM of greater than 425, each facility that is administered as a separate school shall be counted as one school, except that each alternative school with an ADM of less than 175 shall be counted as a part of the school in the district with the highest ADM.

 (b) Notwithstanding (a)(3) of this section and for purposes other than calculations under AS 14.17.450, a charter school shall be counted as a separate school if the charter school has an ADM of at least 150 students.




Sec. 14.17.910. Restrictions governing receipt and expenditure of district money.
 (a) Each district shall maintain complete financial records of the receipt and disbursement of state aid, money acquired from local effort, and other money received or held by the district. The records must be in the form required by the department and are subject to audit by the department at a time and place designated by the department.

 (b) State aid provided under this chapter is for general operational purposes of the district. All district money, including state aid, shall be received, held, allocated, and expended by the district under applicable local law and state and federal constitutional provisions, statutes, and regulations, including those related to ethical standards and accounting principles.




Sec. 14.17.920. Regulations.
The department shall adopt regulations necessary to implement this chapter.


Sec. 14.17.990. Definitions.
In this chapter, unless the context requires otherwise,
     (1) “ADM or average daily membership” means the aggregate number of full-time equivalent students enrolled in a school district during the student count period for which a determination is being made, divided by the actual number of days that school is in session for the student count period for which the determination is being made;

     (2) “district” means a city or borough school district or a regional educational attendance area;

     (3) “district adjusted ADM” means the number resulting from the calculations under AS 14.17.410(b)(1);

     (4) “district ADM” means the sum of the ADMs in a district;

     (5) “eligible federal impact aid” means the amount of federal impact aid received by a district as of March 1 of the fiscal year as a result of an application submitted in the preceding fiscal year, including advance payments and adjustments received since March 1 of the preceding fiscal year from prior year applications, under 20 U.S.C. 7701 — 7714, except payments received under former 20 U.S.C. 7703(f)(2)(B), to the extent the state may consider that aid as local resources under federal law;

     (6) “local contribution” means appropriations and the value of in-kind services made by a district;

     (7) “taxable real and personal property” means all real and personal property taxable under the laws of the state.




Chapter 18. Prohibition Against Discrimination Based on Sex or Race in Public Education.

Sec. 14.18.010. Discrimination based on sex and race prohibited.
Recognizing the benefit to the state and nation of equal educational opportunities for all students, and equal employment opportunity for public education employees, discrimination on the basis of sex against an employee or a student in public education in Alaska and discrimination against an employee on the basis of race violate art. I, § 3 of the Alaska Constitution and are prohibited. A person in the state may not on the basis of sex be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any education program or activity receiving federal or state financial assistance.


Sec. 14.18.020. Discrimination in employment prohibited.
The board, the Board of Regents, and each school board in the state shall
     (1) allow no difference in conditions of employment, including hiring practices, credential requirements, leaves of absence, hours of employment, pay, employee benefits, and assignment of instructional and noninstructional duties based on sex or race; and

     (2) provide the same opportunities for advancement to males and females.




Sec. 14.18.030. Discrimination in counseling and guidance services prohibited.
Guidance and counseling services in public education are available to students equally and shall stress access to career and vocational opportunities to students without regard to sex.


Sec. 14.18.040. Discrimination in recreational and athletic activities prohibited.
 (a) Equal opportunity for both sexes in athletics and in recreation shall be provided in a manner that is commensurate with the general interests of the members of each sex. Separate school-sponsored teams may be provided for each sex. A school that sponsors separate teams in a particular sport shall provide equipment and supplies, services, and opportunities, including use of courts, gymnasiums, and pools, to both teams with no disparities based on sex. A school that provides showers, toilets, or training-room facilities for athletic or recreational purposes shall provide comparable facilities for both sexes, either through the use of separate facilities or by scheduling separate use by each sex.

 (b) A school shall divide available evening time for athletic events fairly between events for each sex.

 (c) The board and the Board of Regents of the University of Alaska shall adopt procedures to determine on an annual basis student interest in male and female participation in specific sports, athletics, and recreation.




Sec. 14.18.050. Discrimination in course offerings prohibited.
 (a) Except as provided in (b) this section, all public education classes are available to all students without regard to sex, and curriculum requirements may not be differentiated on the basis of sex.

 (b) Separation of the sexes is permitted during sex education programs and during participation in physical education activities if the purpose of the activity involves bodily contact.




Sec. 14.18.060. Discrimination in textbooks and instructional materials prohibited.
 (a) School boards shall have textbooks and instructional materials reviewed for evidence of sex bias in accordance with AS 14.08.111(9) and AS 14.14.090(7). School boards shall use educationally sound, unbiased texts and other instructional materials as they become available. Nothing in this section prohibits use of literary works.

 (b) The board shall establish by regulation standards for nondiscriminatory textbooks and educational materials. Each school board shall provide training for all its certificated personnel on a schedule adopted by the governing body of a school district in the identification and recognition of sex-biased materials.

 (c) The Board of Regents shall establish and implement a policy under AS 14.40.170(b) for the guidance of officers and employees of the university on the selection of nondiscriminatory textbooks and educational materials.




Sec. 14.18.070. Affirmative action.
The board shall establish procedures for affirmative action programs covering both equal employment and equal educational opportunity to be implemented by all school districts and regional educational attendance areas determined by the board not to be in compliance with this chapter.


Sec. 14.18.080. Implementation.
 (a) The board shall adopt regulations under AS 44.62 (Administrative Procedure Act) to implement this chapter.

 (b) The Board of Regents shall adopt rules under AS 14.40.170(b)(1) to implement this chapter.




Sec. 14.18.090. Enforcement by board of education and early development.
 (a) The board shall enforce compliance by school districts and regional educational attendance areas with the provisions of this chapter and the regulations and procedures adopted under it by appropriate order made in accordance with AS 44.62. After a hearing conducted by the office of administrative hearings (AS 44.64.010) and a finding by the board that a district or a regional educational attendance area is not in compliance with this chapter and is not actively working to come into compliance, the board shall institute appropriate proceedings to abate the practices found by the board to be a violation of this chapter.

 (b) After a finding by the board that a district or regional educational attendance area has not complied with AS 14.18.020 — 14.18.070, and that the measures taken under (a) of this section have been ineffective, the board shall withhold state funds in accordance with AS 14.07.070.




Sec. 14.18.100. Remedies.
 (a) A person aggrieved by a violation of this chapter or of a regulation or procedure adopted under this chapter as to primary or secondary education may file a complaint with the board and has an independent right of action in superior court for civil damages and for such equitable relief as the court may determine.

 (b) A person aggrieved by a violation of this chapter or of a regulation or procedure adopted under this chapter as to postsecondary education has an independent right of action in superior court for civil damages and for such equitable relief as the court may determine.




Sec. 14.18.110. Effect of chapter.
This chapter is supplementary to and does not supersede existing laws relating to unlawful discrimination based on sex or race.


Article 1. Teacher Certification.


Chapter 20. Teachers and School Personnel.

Sec. 14.20.010. Teacher certificate required.
A person may not be employed as a teacher in the public schools of the state unless that person possesses a valid teacher certificate except that a person who has made application to the department for a teacher certificate, including a preliminary teacher certificate under AS 14.20.015, or renewal of a teacher certificate that has not been acted upon by the department may be employed as a teacher in the public schools of the state until the department has taken action on the application, but in no case may employment without a certificate last longer than three months. A person who has made application for a certificate under this section may teach for an additional 60 days beyond three months without a certificate if the department grants a written extension. An extension may be granted under this section for not more than 60 days to the person solely due to delay in the department’s receipt of criminal justice information under AS 12.62 or a national criminal history record check under AS 12.62.400.


Sec. 14.20.015. Recognition of certificates of out-of-state teachers.
 (a) The department shall issue a preliminary teacher certificate to an out-of-state teacher who meets the requirements of this section. To be eligible for a preliminary teacher certificate, a person shall
     (1) have received at least a baccalaureate degree from an institution of higher education accredited by a recognized regional accrediting association or approved by the commissioner;

     (2) hold a valid teacher certificate issued by another state;

     (3) have submitted fingerprints to the department to be used for a criminal history background check and been found by the department to be suitable for employment as a teacher under AS 14.20.020(f);

     (4) have paid the fee required by the department under AS 14.20.020(c).

 (b) An out-of-state teacher who has been issued a preliminary teacher certificate under this section shall pass the competency examination designated by the board under AS 14.20.020(i) within one year after the date the preliminary teacher certificate was issued. If the teacher does not pass the examination, the department shall immediately revoke the teacher’s preliminary teacher certificate.

 (c) The preliminary teacher certificate issued under this section must contain the same endorsements as those on the current valid teacher certificate issued by the other state.

 (d) A teacher holding a preliminary teacher certificate issued under this section may be employed to provide instructional services for a school district or regional educational attendance area only if the teacher certificate issued by the other state is valid at the time the teacher commences to provide instructional services for the school district or regional educational attendance area.

 (e) Employment under a preliminary teacher certificate shall be considered in determining whether a teacher qualifies for tenure under AS 14.20.150. However, a teacher may not be granted tenure unless the teacher holds a teacher certificate issued under AS 14.20.020.

 (f) A preliminary teacher certificate and any endorsements issued under this section are valid for three years and may not be renewed. The department may not issue a provisional certificate or a temporary certificate to a teacher who has held a preliminary teacher certificate.




Sec. 14.20.017. Grace period for issuance of regular teacher certificates to previously certificated teachers.
 (a) The department shall issue a teacher certificate as described in AS 14.20.020, subject to revocation, to a teacher who meets the requirements of this section. To be eligible for a revocable teacher certificate under this section, a person shall
     (1) have held a valid teacher certificate issued under AS 14.20.020 that expired more than 12 months before the teacher applied for a certificate under this section;

     (2) have paid the fee required by the department under AS 14.20.020(c).

 (b) A revocable teacher certificate issued under this section is valid for one year, during which the teacher shall complete any requirements for the issuance of a regular teacher certificate under AS 14.20.020 that the teacher has not already met. The department shall expedite the procedures required of teachers holding revocable teacher certificates who are seeking certification under AS 14.20.020.

 (c) A teacher holding a revocable teacher certificate under this section who previously passed the competency examination designated by the board under AS 14.20.020(i) is not required to retake the examination before being eligible for a regular certificate under AS 14.20.020. A teacher holding a revocable teacher certificate who did not previously take or pass the competency examination shall take and pass the examination within one year after the date the revocable teacher certificate was issued. If the teacher does not pass the examination, the department shall immediately revoke the revocable teacher certificate.

 (d) A teacher holding a revocable teacher certificate under this section may not receive a teacher certificate issued under AS 14.20.020 until the teacher submits fingerprints to the department to be used for a criminal history background check and the teacher has been found by the department to be suitable for employment as a teacher under AS 14.20.020(f).

 (e) The revocable teacher certificate issued under this section must contain the same endorsements as those on the teacher’s expired teacher certificate.

 (f) Employment on the basis of a revocable teacher certificate issued under this section shall be considered in determining whether a teacher qualifies for tenure under AS 14.20.150.

 (g) A revocable teacher certificate and any endorsements issued under this section are valid for one year and may not be renewed under this section. The department may not issue a provisional certificate or a temporary certificate to a teacher who has held a teacher certificate issued under this section.




Sec. 14.20.020. Requirements for issuance of certificate; fingerprints.
 (a) Except as provided in (f) of this section, the department shall issue a teacher certificate to every person who meets the requirements in (b), (c), and (h) of this section.

 (b) A person is not eligible for a teacher certificate unless that person has received at least a baccalaureate degree from an institution of higher education accredited by a recognized regional accrediting association or approved by the commissioner and, if applicable, has passed the examination or examinations required by (i) of this section. However, this subsection is not applicable to
     (1) persons employed in the state public school system on September 1, 1962;

     (2) persons issued an emergency certificate during a situation that, in the judgment of the commissioner, requires the temporary issuance of a certificate to a person not otherwise qualified.

 (c) The board may establish by regulation additional requirements for the issuance of certificates. The board shall require teachers to submit fingerprints and the fees required by the Department of Public Safety under AS 12.62.160 for criminal justice information and a national criminal history record check. The board shall submit the fingerprints and fees to the Department of Public Safety for a report of criminal justice information under AS 12.62 and a national criminal history record check under AS 12.62.400. The department shall establish by regulation the fees to be charged for each certificate and for other charges assessed against teachers as part of certification. In establishing the fees to be charged, the department shall establish the fee levels so that the total amount of the fees collected relating to the certification of teachers approximately equals, when added to the other fees collected from teachers, the actual regulatory costs for certifying and disciplining teachers in the state. The department shall annually review each fee level to determine whether the regulatory costs are approximately equal to fee collections. If the review indicates that fee collections and regulatory costs are not approximately equal, the department shall calculate fee adjustments to the fees for certification of teachers and adopt regulations under this subsection to implement the adjustments. In January of each year, the department shall report on all fee levels and revisions for the previous year under this subsection to the office of management and budget. The department shall consider the board’s recommendations concerning the fee levels and regulatory costs before revising fee schedules to comply with this subsection. In this subsection, “regulatory costs” means costs of the department that are attributable to regulation of the teaching profession, including the portion of the expenses of the board that are attributable to the regulation of the teaching profession and the expenses of the Professional Teaching Practices Commission.

 (d) The board may by regulation establish various classes of certificates.

 (e) The annual estimated balance in the account maintained by the commissioner of administration under AS 37.05.142 may be used by the legislature to make appropriations to the department to carry out the purposes of this section and to support the activities of the Professional Teaching Practices Commission under AS 14.20.460, 14.20.470, and 14.20.500.

 (f) The department may not issue a teacher certificate to a person who has been convicted of a crime, or an attempt, solicitation, or conspiracy to commit a crime, involving a minor under AS 11.41.410 — 11.41.460 or a law or ordinance in another jurisdiction with elements similar to an offense described in this subsection.

 (g) The department shall issue a teacher certificate to a person who possessed a valid Alaska teacher certificate upon retirement. A teacher certificate issued under this subsection is valid for the life of the retired teacher and qualifies the holder as a substitute teacher in the state.

 (h) A person is not eligible for a teacher certificate unless the person has completed three semester hours in Alaska studies and three semester hours in multicultural education or cross-cultural communications. However, the commissioner may issue a provisional certificate, valid for no longer than two years, to an applicant who has not completed the semester hours required under this subsection at the time of application.

 (i) Beginning on July 1, 1998, a person is not eligible for an initial regular teacher certificate unless the person has taken and successfully completed a competency examination or examinations designated, at the time the person took the test, by the board. The board shall review nationally recognized examinations that are designed to test the competency of new teachers and shall designate those examinations that it finds adequately test the skills and abilities of new teachers. For each examination designated under this subsection, the board shall establish the minimum acceptable level of performance.

 (j) Whenever required by a provision of this chapter to submit fingerprints to use for a criminal background check for the purpose of determining a person’s suitability for employment as a teacher, the department shall accept a name-based criminal history background check on a person from the agency performing the background check if the
     (1) person cannot submit legible fingerprint cards due to a permanent disability that precludes the person’s ability to submit fingerprints; or

     (2) agency informs the department that its examination of at least two separate sets of fingerprint cards shows that the person’s fingerprints are illegible due to a permanent skin condition.

 (k) A person is not eligible for a teacher certificate unless the person has completed training regarding alcohol and drug related disabilities required under AS 14.20.680, training regarding sexual abuse and sexual assault awareness and prevention required under AS 14.30.355, training regarding dating violence and abuse awareness and prevention required under AS 14.30.356, and training related to suicide prevention required under AS 14.30.362.




Sec. 14.20.022. Subject-matter expert limited teacher certificate.
 (a) Notwithstanding AS 14.20.020, a person may be issued a subject-matter expert limited teacher certificate, valid only in the subject-matter in which the person has expertise, upon compliance with the requirements of this section. A subject-matter expert teacher may only be employed to teach subjects in which the person has satisfied the education or experience requirements set out in (b)(1) of this section.

 (b) To be eligible for a subject-matter expert limited teacher certificate, a person shall
     (1) hold at least a baccalaureate degree from an institution of higher education accredited by a recognized regional or national accrediting association or approved by the commissioner and
          (A) have majored or minored in the subject that the person will be teaching; or

          (B) have at least five years experience in the subject matter that the person will be teaching;

     (2) have submitted fingerprints and the fees required by the Department of Public Safety under AS 12.62.160 for criminal justice information and a national criminal history record check to the department; the department must have submitted the fingerprints and fees to the Department of Public Safety for a report of criminal justice information under AS 12.62 and a national criminal history record check under AS 12.62.400 and the person must have been found by the department to be suitable for employment as a teacher under AS 14.20.020(f); and

     (3) be currently enrolled in an approved post-baccalaureate teacher education program at a regionally accredited institution meeting the requirements of AS 14.20.020(b) that provides for completion of the regular teacher certificate education requirements within two years after receipt of a subject-matter expert limited teacher certificate under this section.

 (c) Before a school district or regional educational attendance area determines whether to hire a person as a subject-matter expert teacher under this section, the school district or regional educational attendance area shall administer a competency examination.

 (d) A subject-matter expert limited teacher certificate is valid for one school year and may be renewed for one additional school year upon a showing of substantial progress towards completion of the teacher education program required under (b)(3) of this section.

 (e) A school district or regional educational attendance area that employs a subject-matter expert teacher shall provide a mentor who is an experienced teacher for the subject-matter expert teacher for at least the first year of the subject-matter expert teacher’s employment in the school district or regional educational attendance area.

 (f) A person employed as a subject-matter expert teacher under this section is considered a certificated employee for purposes of AS 14.25 (teachers’ retirement system). Employment as a subject-matter expert teacher under this section counts as employment for purposes of acquiring tenure under AS 14.20.150; however, a person holding a subject-matter expert limited teacher certificate under this section is not entitled to tenure until the person receives a teacher certificate under AS 14.20.020.

 (g) The department shall adopt regulations necessary to implement this section.

 (h) In this section, “subject-matter expert teacher” is a teacher qualified to teach under (b) of this section.




Sec. 14.20.025. Limited teacher certificates.
Notwithstanding AS 14.20.020(b), a person may be issued a limited certificate, valid only in the area of expertise for which it is issued, to teach Alaska Native language or culture, military science, or a vocational or technical course for which the board determines by regulation that baccalaureate degree training is not sufficiently available. A limited certificate may be issued under this section only if the school board of the district or regional educational attendance area in which the person will be teaching has requested its issuance. A person who applies for a limited certificate shall demonstrate, as required by regulations adopted by the board, instructional skills and subject matter expertise sufficient to ensure the public that the person is competent as a teacher. The board may require a person issued a limited certificate to undertake academic training as may be required by the board by regulation and make satisfactory progress in the academic training.


Sec. 14.20.027. Reporting of and access to social security numbers.
Notwithstanding AS 14.20.010 — 14.20.040, the department may not issue a teacher certificate under AS 14.20.020 or a limited teacher certificate under AS 14.20.025 unless the applicant has supplied the department with the applicant’s social security number. Upon request, the department shall provide the social security number to the child support services agency created in AS 25.27.010, or the child support enforcement agency of another state, for child support purposes authorized under law.


Sec. 14.20.030. Causes for revocation and suspension.
 (a) The commissioner or the Professional Teaching Practices Commission may revoke or suspend a certificate only for the following reasons:
     (1) incompetency, which is defined as the inability or the unintentional or intentional failure to perform the teacher’s customary teaching duties in a satisfactory manner;

     (2) immorality, which is defined as the commission of an act which, under the laws of the state, constitutes a crime involving moral turpitude;

     (3) substantial noncompliance with the school laws of the state or the regulations of the department; or

     (4) upon a determination by the Professional Teaching Practices Commission that there has been a violation of ethical or professional standards or contractual obligations.

 (b) The commissioner or the Professional Teaching Practices Commission shall revoke for life the certificate of a person who has been convicted of a crime, or an attempt, solicitation, or conspiracy to commit a crime, involving a minor under AS 11.41.410 — 11.41.460 or a law or ordinance in another jurisdiction with elements similar to an offense described in this subsection.

 (c) The commissioner or the Professional Teaching Practices Commission shall request the chief administrative law judge (AS 44.64.020), to appoint an administrative law judge employed by the office of administrative hearings to preside at a hearing conducted under this section. AS 44.64.060 and 44.64.070 do not apply to the hearing.




Sec. 14.20.035. Evaluation of training and experience.
In evaluating an applicant for a position in a district or regional educational attendance area, a district or regional educational attendance area shall give preference to those applicants who demonstrate training or experience that establishes that the applicant is likely to be sensitive to the traditions and culture of the cultural backgrounds represented in the student population.


Sec. 14.20.040. Applicability of the Administrative Procedure Act.
AS 44.62 (Administrative Procedure Act) applies to all proceedings under AS 14.20.030, and revocations and suspensions are final and reviewable in accordance with AS 44.62.560 — 44.62.570.


Sec. 14.20.090. Revocation of certificates. [Repealed, § 59 ch 98 SLA 1966.]

Article 2. Employment and Tenure.


Sec. 14.20.095. Right to comment and criticize not to be restricted.
A bylaw or regulation of the commissioner, a school board, or local school administrator may not restrict or modify the right of a teacher to engage in comment and criticism outside school hours, regarding school personnel, members of the governing body of any school or school district, any other public official, or any school employee, to the same extent that any private individual may exercise the right.


Sec. 14.20.097. Duty-free time.
Each governing body shall allow its teachers in school facilities with four or more teachers a daily duty-free mealtime of at least 30 minutes reasonably scheduled during the middle of the teacher’s workday.


Sec. 14.20.100. Unlawful to require statement of religious or political affiliation.
A school board, or a member of a school board, may not require or compel a person applying for the position of teacher in the public schools of the state to state a religious or political affiliation.


Sec. 14.20.110. Penalty for violation of AS 14.20.100.
A person violating AS 14.20.100 is punishable by a fine of not more than $100.


Sec. 14.20.120. Statement of qualifications.
A statement of the qualifications of each teacher and superintendent employed by the state or a school district shall be filed with the commissioner. The statement must contain the credits earned in college, normal school, or university, and the number of years of teaching experience both in the state and elsewhere in the form and manner prescribed by the commissioner.


Sec. 14.20.130. Employment contracts.
An employer may, after January 1, issue contracts for the following school year to employees regularly qualified in accordance with the regulations of the department. The contract for a superintendent may be for more than one school year but may not exceed three consecutive school years.


Sec. 14.20.135. Employment of retired teachers because of shortages. [Repealed by, § 12 ch 57 SLA 2001 as amended by § 10 ch 50 SLA 2005, effective July 1, 2009.]
Sec. 14.20.140. Notification of lay off or nonretention.
 (a) If a teacher who has acquired tenure rights is to be laid off under AS 14.20.177 or is not to be retained for the following school year, the employer shall notify the teacher of the layoff or nonretention by writing, delivered before May 15, or by registered mail postmarked before May 15.

 (b) If a teacher who has not acquired tenure rights is to be laid off under AS 14.20.177 or is not to be retained for the following school year the employer shall notify the teacher of the layoff or nonretention by writing delivered on or before the last day of the school term or by registered mail postmarked on or before the last day of the school term.

 (c) Notwithstanding a teacher’s right to continued employment under AS 39.20.500 — 39.20.550, a school district may notify a teacher of layoff or nonretention under this section for the following school year for a permissible reason.




Sec. 14.20.145. Automatic reemployment.
If notification of nonretention or layoff is not given according to AS 14.20.140, a teacher is entitled to be reemployed in the same district for the following school year on the contract terms the teacher and the employer may agree upon, or, if no terms are agreed upon, the provisions of the previous contract are continued for the following school year, subject to AS 14.20.158. Except as provided in AS 14.20.177(e), the right to automatic reemployment under this section expires if the teacher does not accept reemployment within 30 days after the date on which the teacher receives a contract of reemployment. A teacher who is on family leave under AS 39.20.500 — 39.20.550 must comply with the 30-day deadline in this section to retain the teacher’s reemployment rights under this section.


Sec. 14.20.147. Transfer or absorption of attendance area and teachers.
 (a) When an attendance area is transferred from a currently operating district to, or absorbed into, a new or existing school district, the teachers for the attendance area also shall be transferred unless otherwise mutually agreed by the teacher or teachers and the chief school administrator of the new district if the district employs a chief school administrator. Accumulated or earned benefits, including seniority, salary level, tenure, leave, and retirement, accompany the teacher who is transferred.

 (b) [Repealed, § 48 ch 15 SLA 2014.]
 (c) On the first day of service in the absorbing school district, a teacher transferred from a federal agency school shall be allowed the actual number of days of accumulated sick leave that the teacher has earned while teaching in the state. Consistent with the established district policy the absorbing district may allow credit for any other type of leave. Credit for retirement shall be allowed in accordance with AS 14.25.060.




Sec. 14.20.148. Intradistrict teacher reassignments.
When a teacher is involuntarily transferred or reassigned to a position for which the teacher is qualified, within the district, the teacher’s moving expenses shall be paid unless the one-way driving distance is 20 miles or less from the teacher’s present place of residence, or unless otherwise mutually agreed by the teacher and chief school administrator of the district if the district employs a chief school administrator.


Sec. 14.20.149. Employee evaluation.
 (a) A school board shall adopt a certificated employee evaluation system for evaluation and improvement of the performance of the district’s teachers and administrators. The evaluation system applies to all the district’s certificated employees except the district’s superintendent. A school board shall consider information from students, parents, community members, classroom teachers, affected collective bargaining units, and administrators in the design and periodic review of the district’s certificated employee evaluation system. An evaluation of a certificated employee under this section must be based on observation of the employee in the employee’s workplace.

 (b) The certificated employee evaluation system must
     (1) establish district performance standards for the district’s teachers and administrators that are based on professional performance standards adopted by the department by regulation;

     (2) require at least two observations for the evaluation of each nontenured teacher in the district each school year;

     (3) require at least an annual evaluation of each tenured teacher in the district who met the district performance standards during the previous school year;

     (4) permit the district to limit its evaluations of tenured teachers who have consistently exceeded the district performance standards to one evaluation every two school years;

     (5) require the school district to perform an annual evaluation for each administrator;

     (6) require the school district to prepare and implement a plan of improvement for a teacher or administrator whose performance did not meet the district performance standards, except if the teacher’s or administrator’s performance warrants immediate dismissal under AS 14.20.170(a); and

     (7) provide an opportunity for students, parents, community members, teachers, and administrators to provide information on the performance of the teacher or administrator who is the subject of the evaluation to the evaluating administrator.

 (c) A person may not conduct an evaluation under this section unless the person holds a type B certificate or is a site administrator under the supervision of a person with a type B certificate, is employed by the school district as an administrator, and has completed training in the use of the school district’s teacher evaluation system.

 (d) A school district shall offer in-service training to the certificated employees who are subject to the evaluation system on a schedule adopted by the governing body of a school district. The training must address the procedures of the evaluation system, the standards that the district uses in evaluating the performance of teachers and administrators, and other information that the district considers helpful.

 (e) A school district shall provide a tenured teacher whose performance, after evaluation, did not meet the district performance standards with a plan of improvement. The evaluating administrator shall consult with the tenured teacher in setting clear, specific performance expectations to be included in the plan of improvement. The plan of improvement must address ways in which the tenured teacher’s performance can be improved and shall last for not less than 90 workdays and not more than 180 workdays unless the minimum time is shortened by agreement between the evaluating administrator and the teacher. The plan of improvement shall be based on the professional performance standards outlined in the locally adopted school district evaluation procedure. The school district must observe the teacher at least twice during the course of the plan. If, at the conclusion of the plan of improvement, the tenured teacher’s performance again does not meet the district performance standards, the district may nonretain the teacher under AS 14.20.175(b)(1).

 (f) A school district may place an administrator who has previously acquired tenure, whose performance, including performance as an evaluator under the district’s certificated employee evaluation system, does not meet the district performance standards on a plan of improvement. The plan must address ways in which the administrator’s performance can be improved and shall last for not less than 90 workdays and not more than 210 workdays unless the minimum time is shortened by agreement between the evaluating administrator and the administrator being evaluated. The school district must observe the administrator being evaluated at least twice during the course of the plan. If, at the conclusion of the plan of improvement, the administrator’s performance again does not meet the district performance standards, the district may terminate its employment contract with the administrator. This subsection does not restrict the right of a school district to reassign an administrator to a teaching position consistent with the terms of an applicable collective bargaining agreement.

 (g) The department may request copies of each school district’s certificated employee evaluation system and changes the district makes to the system.

 (h) Information provided to a school district under the school district’s certificated employee evaluation system concerning the performance of an individual being evaluated under the system is not a public record and is not subject to disclosure under AS 40.25.100 — 40.25.295. However, the individual who is the subject of the evaluation is entitled to a copy of the information and may waive the confidentiality provisions of this subsection concerning the information.




Sec. 14.20.150. Acquisition and reacquisition of tenure rights.
 (a) Except as provided in (c) or (d) of this section, a teacher acquires tenure rights in a district when the teacher
     (1) possesses a valid teaching certificate that authorizes the teacher to be employed as a certificated teacher or as an administrator under regulations adopted by the department;

     (2) has been employed as a teacher in the same district continuously for three full school years;

     (3) receives, in the third year of any three-year period of continuous employment with the district, an evaluation under the district’s evaluation system stating that the teacher’s performance meets the district performance standards; and

     (4) on or before October 15 of the school year,
          (A) accepts a contract for employment as a teacher in the district for a fourth consecutive school year; and

          (B) performs a day of teaching services in the district during that school year.

 (b) In this section, a full school year of employment means employment that begins on or before the first student count day required by the department in a school year or October 15, whichever occurs first, and continues through the remainder of the school year.

 (c) A superintendent may not acquire or maintain tenure in a district.

 (d) A teacher who has acquired tenure in a school district in the state and who loses tenure in the district because of a break in service may reacquire tenure in that school district under this subsection if the break in service was not the result of a dismissal under AS 14.20.170 or nonretention under AS 14.20.175 and did not last longer than one year. A break in service that begins on or after the last day of a school district’s instructional days for a school year but before the first instructional day of the next school year will be considered to have lasted no longer than one year if the teacher is employed on the first instructional day of the school year that begins more than 12 but not more than 16 months after the beginning of the break in service. A previously tenured teacher reacquires tenure in the school district under this subsection when the teacher
     (1) possesses a valid teaching certificate that authorizes the teacher to be employed as a certificated teacher or as an administrator under regulations adopted by the department;

     (2) has been employed as a teacher in the district continuously for one full school year after a break in service that does not exceed the time limits set out in this subsection;

     (3) receives, under the district’s evaluation system, an acceptable evaluation from the district; and

     (4) on or before October 15 of the school year,
          (A) accepts a contract for employment as a teacher in the district for a second consecutive school year; and

          (B) performs a day of teaching services in the district during that school year.

 (e) Notwithstanding (a) of this section, a teacher who has acquired tenure in a school district who moves to a new school district acquires tenure in the new school district on the first instructional day of the third year of employment in the new school district if
     (1) the teacher otherwise meets the qualifications for tenure set out in (a) of this section; and

     (2) the break in service meets the requirements of (d) of this section.




Sec. 14.20.155. Effect of tenure rights.
 (a) Except as otherwise provided in this chapter, a teacher who has acquired tenure rights has the right to employment within the district during continuous service.

 (b) A teacher who has acquired tenure rights may agree to a new contract at any time. However, if the teacher fails to agree to a new contract, the provisions of the previous contract are continued subject to AS 14.20.158.




Sec. 14.20.158. Continued contract provisions.
Continuation of the provisions of a teacher’s contract under AS 14.20.145 or 14.20.155 does not
     (1) affect the alteration of the teacher’s salary in accordance with the salary schedule prescribed by state law, or in accordance with a local salary schedule applicable to all teachers in the district and adopted by bylaws;

     (2) limit the right of the employer to assign the teacher to any teaching, administrative, or counseling position for which the teacher is qualified; or

     (3) limit the right of the employer to assign the teacher, as is reasonably necessary, to any school in the district.




Sec. 14.20.160. Loss of tenure rights.
Tenure rights are lost when the teacher’s employment in the district is interrupted or terminated. However, a teacher on layoff status does not lose tenure rights during the period of layoff except as provided under AS 14.20.177.


Sec. 14.20.165. Restoration of tenure rights.
A teacher who held tenure rights and who was retired due to disability under AS 14.25.130, but whose disability (1) has been removed, and the removal of that disability is certified by a competent physician following a physical or mental examination, or (2) has been compensated for by rehabilitation or other appropriate restorative education or training, and that rehabilitation or restoration to health has been certified by the division of vocational rehabilitation of the Department of Labor and Workforce Development, shall be restored to full tenure rights in the district from which the teacher was retired, at such time as an opening for which the teacher is qualified becomes available.


Sec. 14.20.170. Dismissal.
 (a) A teacher, including a teacher who has acquired tenure rights, may be dismissed at any time only for the following causes:
     (1) incompetency, which is defined as the inability or the unintentional or intentional failure to perform the teacher’s customary teaching duties in a satisfactory manner;

     (2) immorality, which is defined as the commission of an act that, under the laws of the state, constitutes a crime involving moral turpitude; or

     (3) substantial noncompliance with the school laws of the state, the regulations or bylaws of the department, the bylaws of the district, or the written rules of the superintendent.

 (b) A teacher may be suspended temporarily with regular compensation during a period of investigation to determine whether or not cause exists for the issuance of a notification of dismissal according to AS 14.20.180.

 (c) A teacher who is dismissed under this section is not entitled to a plan of improvement under AS 14.20.149.




Sec. 14.20.175. Nonretention.
 (a) A teacher who has not acquired tenure rights is subject to nonretention for the school year following the expiration of the teacher’s contract for any cause that the employer determines to be adequate. However, at the teacher’s request, the teacher is entitled to a written statement of the cause for nonretention. The boards of city and borough school districts and regional educational attendance areas shall provide by regulation or bylaw a procedure under which a nonretained teacher may request and receive an informal hearing by the board.

 (b) A teacher who has acquired tenure rights is subject to nonretention for the following school year only for the following causes:
     (1) the school district demonstrates that
          (A) the district has fully complied with the requirements of AS 14.20.149 with respect to the tenured teacher;

          (B) the teacher’s performance, after completion of the plan of improvement, failed to meet the performance objectives set out in the plan; and

          (C) the evaluation of the teacher established that the teacher does not meet the district performance standards;

     (2) immorality, which is defined as the commission of an act that, under the laws of the state, constitutes a crime involving moral turpitude; or

     (3) substantial noncompliance with the school laws of the state, the regulations or bylaws of the department, the bylaws of the district, or the written rules of the superintendent.




Sec. 14.20.177. Reductions in force.
 (a) A school district may implement a layoff plan under this section if it is necessary for the district to reduce the number of tenured teachers because
     (1) school attendance in the district has decreased; or

     (2) the basic need of the school district determined under AS 14.17.410(b)(1) decreases by three percent or more from the previous year.

 (b) Before a school district lays off any tenured teacher, the school board shall adopt a layoff plan. The plan must identify academic and other programs that the district intends to maintain in implementing the layoff plan. The plan must also include procedures for layoff and recall of tenured teachers consistent with this section.

 (c) Except as provided in this subsection, a school district may place a tenured teacher on layoff status only after the district has given notice of nonretention to all nontenured teachers. However, a school district may retain a nontenured teacher and place on layoff status a tenured teacher if there is no tenured teacher in the district who is qualified to replace the nontenured teacher. The school district shall comply with the notice requirements set out in AS 14.20.140 in placing a tenured or nontenured teacher on layoff status.

 (d) For purposes of this section, a tenured teacher is considered qualified for a position if the position is in
     (1) grades K — 8 and the teacher has an elementary endorsement;

     (2) an established middle school and the teacher has
          (A) an elementary endorsement;

          (B) a middle school endorsement; or

          (C) a secondary certificate with a subject area endorsement in the area of assignment in which the teacher filling the position will spend at least 40 percent of the teacher’s time or the teacher has, within the five years immediately preceding the last date on which the teacher performed teaching services in the district before being laid off, received an evaluation stating that the teacher’s performance in the subject or subjects meets the district performance standards; or

     (3) grades 9 — 12 and the teacher has an endorsement for each subject area in which the teacher filling the position will spend at least 40 percent of the teacher’s time or the teacher has, within the five years immediately preceding the last date on which the teacher performed teaching services in the district before being laid off, received an evaluation stating that the teacher’s performance in the subject or subjects meets the district performance standards.

 (e) For a period of three years after layoff, a teacher is on layoff status and is entitled to a hiring preference in the district where the teacher had been employed. The hiring preference applies only to vacant teaching positions for which the teacher is qualified. If a teacher is offered a teaching position under this subsection and the teacher declines the offer or fails to accept it within 30 days, the teacher is no longer considered to be on layoff status and is no longer entitled to a hiring preference under this section unless the teacher declines the offer because the teacher is contractually obligated to provide professional services to another private or public educational program.

 (f) Notwithstanding any provision of AS 23.40, the terms of a collective bargaining agreement entered into between a school district and a bargaining organization representing teachers on or after August 16, 1996, may not be in conflict with the provisions of this section.

 (g) A teacher on layoff status is not entitled to be reemployed under AS 14.20.145 and does not accrue leave. However, layoff status does not constitute a break in service for retaining tenure rights and accrued sick leave.

 (h) In this section, “school district” or “district” means a city or borough school district or a regional educational attendance area.




Sec. 14.20.180. Procedures upon notice of dismissal or nonretention.
 (a) Before a teacher is dismissed, the employer shall give the teacher written notice of the proposed dismissal and a pretermination hearing. A pretermination hearing under this section must comport with the minimum requirements of due process, including an explanation of the employer’s evidence and basis for the proposed dismissal and an opportunity for the teacher to respond. If, following a pretermination hearing, an employer determines that dismissal is appropriate, the employer shall provide written notice, including a statement of cause and a complete bill of particulars, of the decision. The dismissal is effective when the notice is delivered to the teacher.

 (b) An employer that has decided to nonretain a tenured teacher shall provide the teacher with written notice, including a statement of cause and a complete bill of particulars. The notice must comply with AS 14.20.140(a).

 (c) Within 15 days after receipt of a decision of dismissal under (a) of this section or nonretention under (b) of this section, a teacher may notify the employer in writing that the teacher is requesting a hearing before the school board under (d) of this section or that the teacher is invoking the grievance procedures under (e) of this section.

 (d) Upon receipt of a request for a hearing, the employer shall immediately schedule a hearing and notify the teacher in writing of the date, time, and place of the hearing. The teacher may elect to have either a public or a private hearing, and to have the hearing under oath or affirmation. The parties have a right to be represented by counsel and to cross-examine witnesses. The teacher has the right to subpoena a person who has made statements that are used as a basis for the employer’s decision to dismiss or nonretain. A written transcript, tape, or similar recording of the proceedings shall be kept. A copy of the recording shall be furnished to the teacher, for cost, upon request of the teacher. A decision of the school board requires a majority vote of the membership, by roll call. The board’s decision shall be in writing and must contain specific findings of fact and conclusions of law. A copy of the decision shall be furnished to the teacher within 10 days after the date of the decision. If the school board sustains the dismissal or nonretention, the teacher may appeal the decision to the superior court for judicial review based on the administrative record.

 (e) Upon receipt of a notice invoking the grievance procedures, the school board shall immediately schedule an informal hearing and notify the teacher in writing of the date, time, and place of the hearing. The hearing is for the purpose of reviewing the statement of cause and bill of particulars and not for the purpose of taking evidence. The teacher may choose whether the informal hearing is held in public or in private. A decision of the school board requires a majority vote of the membership, by roll call. The board’s decision shall be in writing. The board shall promptly furnish a copy of the decision to the teacher. If the board sustains the dismissal or nonretention, the teacher may, within 15 days after receipt of the decision, give written notice to the school board and submit the matter to arbitration under the rules of the American Arbitration Association. The decision of the arbitrator is final and binding on the school board, the teacher, and the bargaining organization representing the teacher, if any. If the school board and the teacher agree, they may waive the informal hearing under this subsection and submit the matter directly to arbitration.




Secs. 14.20.185 — 14.20.200. Procedure and hearing; appeals. [Repealed, § 59 ch 98 SLA 1966.]
Sec. 14.20.205. Judicial review. [Repealed, § 14 ch 31 SLA 1996.]
Sec. 14.20.207. [Renumbered as AS 14.20.215.]
Sec. 14.20.210. Authority of school board or department to adopt bylaws.
A school board or the department may adopt teacher tenure bylaws not in conflict with the regulations of the department or state law.


Sec. 14.20.215. Definitions.
In AS 14.20.010 — 14.20.215,
     (1) “continuous employment” means employment that is without interruption except for temporary absences approved by the employer or its designee, or except for the interval between consecutive school terms if the teacher is employed only for the months of the school term;

     (2) “dismissal” means termination by the employer of the contract services of the teacher during the time a teacher’s contract is in force, and termination of the right to the balance of the compensation due the teacher under the contract;

     (3) “district performance standards” means evaluation criteria for the district’s teachers and administrators that are adopted by a school district under AS 14.20.149 and that are based on the professional performance standards adopted by the department;

     (4) “employer” means the school board or superintendent that appoints the teacher;

     (5) “nonretention” means the election by an employer not to reemploy a teacher for the school year or school term immediately following the expiration of the teacher’s current contract;

     (6) “school year” includes “school term” if the teacher is employed only for the period of the school term;

     (7) “teacher” means an individual who, for compensation, has primary responsibility to plan, instruct, and evaluate learning of elementary or secondary school students in the classroom or an equivalent setting and also includes individuals holding other positions as determined by the department by regulation.




Article 3. Salary Scales.


Sec. 14.20.220. School experience for salary scales.
 (a) [Repealed, § 52 ch 6 SLA 1984.]
 (b) [Repealed, § 52 ch 6 SLA 1984.]
 (c) [Repealed, § 52 ch 6 SLA 1984.]
 (d) [Repealed, § 35 ch 46 SLA 1970.]
 (e) For teachers holding bachelors’ degrees, not more than six years of school experience outside the state may be substituted for a like period of school experience in the state when a teacher’s position on the salary scale is established, and, for teachers holding masters’ degrees, not more than eight years of school experience outside the state may be substituted for a like period of school experience in the state when a teacher’s position on the salary scale is established.

 (f) [Repealed, § 23 ch 37 SLA 1986.]
 (g) In this section, “school experience” means a full-time elementary or secondary teacher in a public or nonpublic school as defined in AS 14.25.220.




Sec. 14.20.230. Administrators’ salaries. [Repealed, § 52 ch 6 SLA 1984.]
Secs. 14.20.240 — 14.20.270. Salaries; reimbursement by state to school districts; limitation on higher salaries not prohibited; determination of number of teachers, superintendents, principals and vice principals for which district entitled to reimbursement. [Repealed, § 6 ch 229 SLA 1970.]
Sec. 14.20.275. Definitions. [Repealed, § 52 ch 6 SLA 1984.]

Article 4. Sabbatical Leave.


Sec. 14.20.280. Basis of leave.
A teacher who has rendered active service for seven or more years in a district is eligible for sabbatical leave. Sabbatical leave may be taken for educational purposes only, and for not more than one school year.


Sec. 14.20.290. Application.
A teacher who wishes to take sabbatical leave shall apply to the governing body of the school district. The teacher shall submit information showing qualifications for sabbatical leave and a plan for education during the leave.


Sec. 14.20.300. Selection of teachers.
 (a) The governing body of the school district has the responsibility for selection of the teachers to be granted sabbatical leave.

 (b) In selecting teachers for sabbatical leave, the governing body shall consider the benefit that the school district will derive from the proposed plan of the teacher for educational purposes, the field of study of the teacher, the contributions of the teacher to education in the state, and the seniority of the teacher.




Sec. 14.20.310. Number of teachers on sabbatical leave; compensation.
 (a) The number of teachers eligible for sabbatical leave that may be allowed under AS 14.20.280 — 14.20.350 is as follows:
     (1) not more than one-half of one percent of the total number of teachers from all borough and city school districts and regional educational attendance areas may be on state-supported sabbatical leave in any year;

     (2) any number of teachers may be on sabbatical leave at school district or personal expense.

 (b) A teacher on state-supported sabbatical leave is entitled to one-half of base salary to be paid by the department.

 (c) A teacher on sabbatical leave at district expense is entitled to an amount of salary to be determined by the school board.




Sec. 14.20.320. Responsibility of teacher.
Upon the return of a teacher to the teaching position, the teacher shall make a report to the governing body concerning educational accomplishments. A teacher who does not serve for at least a full year after returning shall refund to the school board money paid to the teacher under AS 14.20.310 unless the failure to serve a full year after return is attributable to sickness, injury, or death.


Sec. 14.20.330. Position, tenure, and retirement.
 (a) Unless it is otherwise agreed, a teacher returning from sabbatical leave shall return to the position occupied by that teacher when the sabbatical leave began.

 (b) A sabbatical leave is not an interruption of the continuous service necessary to attain or retain tenure under AS 14.20.150, 14.20.155, or 14.20.160. However, the time spent on sabbatical leave may not be counted in determining when a teacher has sufficient service to enable the teacher to acquire tenure rights.

 (c) A sabbatical leave is not a break in service for retirement purposes. Payment into the retirement fund shall be made on the basis of full salary.




Sec. 14.20.340. Military service and previous leaves of absence.
To determine eligibility for sabbatical leave, tours of military service and leaves of absence granted before July 1, 1963, are not considered years of active service.


Sec. 14.20.345. Leave of absence without pay.
 (a) A teacher may be granted a leave of absence without pay for the purposes which may be approved by the governing body of the district if
     (1) the teacher’s application is approved by the governing body of the district; and

     (2) the teacher agrees to return to employment in a public school not later than the beginning of the school year following termination of the period for which the leave of absence was granted.

 (b) A leave of absence is not an interruption of the continuous service necessary to attain or retain retirement or tenure rights under AS 14.20.150, 14.20.155, or 14.20.160. However, the time spent on leave of absence may not be counted in determining when a teacher has sufficient service to enable the teacher to acquire retirement or tenure rights.

 (c) The leave of absence is not a break in service for retirement purposes.

 (d) The governing body of the district may agree to continue the teacher’s retirement contributions if the teacher agrees to pay the percent required under AS 14.25.050 of the salary the teacher would have received during the leave of absence and reimburse the district for the district’s required retirement contribution. Each year of leave of absence then would count as a year of retirement service.

 (e) The governing body of the district may advance the teacher on the district salary schedule when the teacher returns to employment if the governing body determines that the teacher’s leave of absence was educationally or professionally beneficial to the teacher or the district.

 (f) A teacher may make contributions to the retirement fund for each year or portion of a year of leave of absence taken. The contribution shall include the required percent of the salary the teacher would have received had the leave of absence not been taken, plus the required employer and state contributions that would have been made. Compound interest at the rate prescribed by regulation shall be added as computed from the beginning date of the leave of absence to the date the teacher pays the contribution.




Sec. 14.20.350. Definition.
In AS 14.20.280 — 14.20.350, “teacher” means a certificated member of the teaching, supervisory, or administrative corps in the public schools of the state.


Article 5. Professional Teaching Practices Act.


Sec. 14.20.370. Teaching profession.
Teachers required by state law to be certificated, instructors in institutions of higher learning, school administrators, school program administrators, and school counselors are within the teaching profession.


Sec. 14.20.380. Creation of a commission.
There is a commission of professional educators known as the Professional Teaching Practices Commission.


Sec. 14.20.390. Appointment and qualifications.
The commission consists of nine members appointed by the governor and confirmed by a majority of the members of the legislature in joint session. Each member, in addition to having been actively engaged in the teaching profession for at least five years immediately preceding appointment, shall be a citizen of the United States and a resident of the state.


Sec. 14.20.400. Composition of the commission.
The commission consists of the following members:
     (1) five classroom teachers;

     (2) one principal;

     (3) one superintendent;

     (4) one representative of the office of the commissioner;

     (5) one representative of an Alaska institution of higher learning.




Sec. 14.20.410. Selection of members.
 (a) Members of the commission shall be selected as follows:
     (1) the five classroom teachers from lists of names submitted by recognized Alaska teachers’ organizations, each list not to exceed 12 names; however, in lieu of one of the five, one classroom teacher may be selected from a list of not more than four names signed and submitted by not less than 25 teachers who have no affiliation with any organization qualified to submit nomination lists, with the limitation that no teacher may sign more than one list in any year;

     (2) the principal from a list of three names submitted by the Alaska Principals Association;

     (3) the superintendent from a list of three names submitted by the Superintendents Advisory Commission;

     (4) the representative of the office of the commissioner from a list of three names submitted by the commissioner;

     (5) the representative of an Alaska institution of higher learning from lists of names submitted by Alaska institutions of higher learning, each list not to exceed three names.

 (b) The lists shall be submitted to the commissioner who shall submit them as a group to the governor’s office.

 (c) At least 30 days before a position on the commission is due to become vacant, the chairman shall cause notice of the impending vacancy to be published and to be conveyed to each organized group eligible to submit a list of nominees.




Sec. 14.20.420. Term of office.
 (a) The term of office for each member of the commission is three years and, except as provided in AS 39.05.080(4), each member serves until a successor is appointed.

 (b) Vacancies shall be filled by appointment by the governor and, except as provided in AS 39.05.080(4), an appointment to fill a vacancy is for the unexpired term.

 (c) An individual may not serve more than a total of two 3-year terms.

 (d) The commission shall select a chairman from among its members.




Sec. 14.20.430. Dismissal.
Any member may be removed by the governor for misconduct, malfeasance or nonfeasance in office, or incapacity.


Sec. 14.20.440. Reimbursement.
Members of the commission shall receive per diem according to law and are to be granted administrative leave with full pay by their employer for time spent in the performance of official duties under AS 14.20.370 — 14.20.510. If a member is required to spend more than 15 days in a fiscal year in the performance of official duties under AS 14.20.370 — 14.20.510, the state shall reimburse the employer for costs incurred after the 15th day.


Sec. 14.20.450. Responsibilities of commission.
The commission shall have the initial responsibility of developing, through the teaching profession, criteria of professional practices in areas including
     (1) ethical and professional performance;

     (2) preparation for and continuance in professional services; and

     (3) contractual obligations.




Sec. 14.20.460. Duties of commission.
The commission shall
     (1) establish procedures, and adopt regulations to implement the purposes of AS 14.20.370 — 14.20.510;

     (2) conduct investigations and hearings on alleged violations of ethical or professional teaching performance, contractual obligations, and professional teaching misconduct;

     (3) review the regulations of the department as they relate to teacher certification and recommend necessary changes;

     (4) review the decisions of the department regarding the issuance or denial of certificates and in its discretion recommend reversal of decisions.




Sec. 14.20.470. Powers of commission.
 (a) The commission may
     (1) study proposals developed by regular committees of any existing professional organization whose members are within the teaching profession;

     (2) subpoena witnesses, place them under oath, and maintain written records;

     (3) warn or reprimand members of the teaching profession, if in the judgment of the commission such action is warranted;

     (4) suspend or revoke the certificate of a member of the teaching profession for one of the reasons set out in AS 14.20.030 except that in the case of an administrator, the commissioner must concur;

     (5) make any recommendation to the board or to school boards that will promote an improvement in the teaching profession;

     (6) request assistance through any of the investigative processes of any existing professional teaching organizations when analyzing charges of breach of ethical or professional teaching practices;

     (7) appoint an executive secretary, delegate those ministerial functions to the executive secretary as the commission may decide and set the executive secretary’s compensation with a starting salary not exceeding range 26, step B of the pay plan for state employees in AS 39.27.011(a).

 (b) A decision issued by the commission with the approval of the commissioner under (a)(4) of this section is final.




Sec. 14.20.475. Applicability of the Administrative Procedure Act.
AS 44.62 (Administrative Procedure Act) applies to regulations and proceedings under AS 14.20.370 — 14.20.510.


Sec. 14.20.480. Effect of standards.
Members of the teaching profession are obligated to abide by the professional teaching standards adopted by the commission.


Sec. 14.20.500. Support.
In addition to available state funds, the commission shall also be financed by members of the profession in accordance with regulations adopted by the department including, if necessary, an increase in the fees for certificates.


Sec. 14.20.510. Short title.
AS 14.20.370 — 14.20.510 shall be known as the Professional Teaching Practices Act.


Secs. 14.20.550 — 14.20.610. Negotiation and mediation. [Repealed, § 10 ch 1 SLA 1992. For current provisions on teacher negotiations, see AS 23.40.]

Article 6. Interstate Agreement on Qualification of Educational Personnel.


Sec. 14.20.620. Entry into agreement.
The interstate Agreement on Qualification of Educational Personnel is enacted into law and entered into in behalf of the State of Alaska with all other states and jurisdictions legally joining in it in a form substantially as contained in AS 14.20.630.


Sec. 14.20.630. Terms and provisions of agreement.
The terms and provisions of the agreement referred to in AS 14.20.620 are as follows:


Sec. 14.20.640. Designated state official to make contracts.
The designated state official to make contracts on behalf of the state under Article III of the agreement shall be the commissioner.


Sec. 14.20.650. Filing and publishing of contracts.
True copies of all contracts made on behalf of this state under the agreement shall be kept on file in the office of the commissioner and in the office of the lieutenant governor. The department shall publish all the contracts in convenient form.


Article 7. Required Training.


Sec. 14.20.680. Required alcohol and drug related disabilities training.
 (a) A school district or regional educational attendance area shall train each teacher, administrator, counselor, and specialist on the needs of individual students who have alcohol or drug related disabilities. The training must utilize the best available educational technology and include an overview of medical and psychological characteristics associated with alcohol or drug related disabilities, family issues, and the specific educational needs of students with alcohol or drug related disabilities.

 (b) A school district or regional educational attendance area shall provide the training required under (a) of this section on a schedule adopted by the governing body of a school district or regional educational attendance area.




Article 1. Administration of the Teachers’ Retirement System.


Chapter 25. Teachers’ Retirement.

Sec. 14.25.001. Purpose.
The purpose of this chapter is to encourage qualified teachers to enter and remain in service with participating employers by establishing plans for the payment of retirement, disability, and death benefits to or on behalf of the members.


Sec. 14.25.002. Attorney general.
The attorney general of the state is the legal counsel for the system and shall advise the administrator and represent the system in a legal proceeding.


Sec. 14.25.003. Administrator.
 (a) The commissioner of administration or the commissioner’s designee is the administrator of the system.

 (b) The commissioner of administration shall adopt regulations to govern the operation of the system.




Sec. 14.25.004. Powers and duties of the administrator.
 (a) The administrator shall
     (1) establish and maintain an adequate system of accounts;

     (2) transmit the funds deposited in the system to the retirement fund established and maintained by the Alaska Retirement Management Board;

     (3) approve or disapprove claims for retirement benefits;

     (4) make payments for the various purposes specified;

     (5) submit periodic reports or statements of account that are needed;

     (6) issue a statement of account to an employee not less than once each year showing the amount of the employee’s contributions to the applicable plan in the system;

     (7) formulate and recommend to the commissioner of administration regulations to govern the operation of the system;

     (8) as soon as possible after the close of each fiscal year, and not later than six months after the close of each fiscal year, send to the governor and the legislature an annual statement on the operations of each of the plans in the system containing
          (A) a balance sheet;

          (B) a statement of income and expenditures for the previous fiscal year;

          (C) a report on valuation of trust fund assets;

          (D) a summary of assets held in the trust fund listed by the categories of investment, as provided by the Alaska Retirement Management Board;

          (E) other statistical financial data that are necessary for proper understanding of the financial condition of the system as a whole and each plan in the system and the result of its operations;

     (9) engage an independent certified public accountant to conduct an annual audit of each plan’s accounts and the annual report of the system’s financial condition and activity;

     (10) report to the Legislative Budget and Audit Committee concerning the condition and administration of each plan and distribute the report to the members of each plan in the system;

     (11) publish an information handbook for each plan in the system at intervals that the administrator considers appropriate;

     (12) meet at least annually with the board to review the condition and management of the retirement systems and to review significant changes to policies, regulations, or benefits; and

     (13) do whatever else may be necessary to carry out the purposes of each plan in the system.

 (b) The administrator is authorized to charge fees necessary to members’ accounts to cover the ongoing cost of operating each plan in the system.

 (c) The administrator is authorized to contract with public and private entities to provide record keeping, benefits payments, and other functions necessary for the administration of each plan in the system.




Sec. 14.25.005. Regulations.
 (a) Regulations adopted by the commissioner of administration under this chapter relate to the internal management of a state agency, and the adoption of the regulations is not subject to AS 44.62 (Administrative Procedure Act).

 (b) Notwithstanding (a) of this section, a regulation adopted under this chapter shall be published in the Alaska Administrative Register and Code for informational purposes.

 (c) Each regulation adopted under this chapter must conform to the style and format requirements of the drafting manual for administrative regulations that is published under AS 44.62.050.

 (d) At least 30 days before the adoption, amendment, or repeal of a regulation under this chapter, the commissioner of administration shall provide notice of the action that is being considered. The notice shall be
     (1) posted in public buildings throughout the state;

     (2) published in one or more newspapers of general circulation in each judicial district of the state;

     (3) mailed to each person or group that has filed a request for notice of proposed action with the commissioner of administration; and

     (4) furnished to each member of the legislature and to the Legislative Affairs Agency.

 (e) Failure to mail notice to a person as required under (d)(3) of this section does not invalidate an action taken by the commissioner of administration.

 (f) The commissioner of administration may hold a hearing on a proposed regulation.

 (g) A regulation adopted under this chapter takes effect 30 days after adoption by the commissioner of administration.

 (h) Notwithstanding the other provisions of this section, a regulation may be adopted, amended, or repealed, effective immediately, as an emergency regulation by the commissioner of administration. For an emergency regulation to be effective, the commissioner must find that the adoption, amendment, or repeal of the regulation is necessary for the immediate preservation of the orderly operation of the system. The commissioner shall, within 10 days after adoption of an emergency regulation, give notice of the adoption under (d) of this section.

 (i) In this section, “regulation” has the meaning given in AS 44.62.640(a).




Sec. 14.25.006. Appeals.
An employer, member, annuitant, or beneficiary may appeal a decision made by the administrator to the office of administrative hearings established under AS 44.64. An aggrieved party may appeal a final decision to the superior court.


Sec. 14.25.007. Investment management of retirement system funds.
The Alaska Retirement Management Board established under AS 37.10.210 is the fiduciary of the system funds.


Sec. 14.25.008. Definitions.
In AS 14.25.001 — 14.25.008,
     (1) “plan” means a retirement plan established in AS 14.25.009 — 14.25.220 or the retirement plan established in AS 14.25.310 — 14.25.590;

     (2) “system” means all retirement plans established under the teachers’ retirement system.




Article 2. Teachers’ Defined Benefit Retirement Plan.


Sec. 14.25.009. Applicability of AS 14.25.009 — 14.25.220.
The provisions of AS 14.25.009 — 14.25.220 apply only to members first hired before July 1, 2006.


Sec. 14.25.010. Retirement plan established; federal qualification requirements.
 (a) A joint-contributory retirement plan for teachers of the state is created.

 (b) The retirement plan established by AS 14.25.009 — 14.25.220 is intended to qualify under 26 U.S.C. 401(a) and 414(d) (Internal Revenue Code) as a qualified retirement plan established and maintained by the state for its employees, for the employees of school districts and regional educational attendance areas in the state, and for the employees of other employers whose participation is authorized by AS 14.25.009 — 14.25.220 and who participate in this plan.

 (c) An amendment to AS 14.25.009 — 14.25.220 does not provide a person with a vested right to a benefit if the Internal Revenue Service determines that the amendment will result in disqualification of the plan under the Internal Revenue Code.




Sec. 14.25.012. Purpose and effective date.
 (a) [Repealed, § 132 ch 9 FSSLA 2005.]
 (b) The plan created in AS 14.25.009 — 14.25.220 became effective as of July 1, 1955, at which time contributions by the participating employers and members began.

 (c) Employees first hired after June 30, 2006, are not eligible to participate in the plan established in AS 14.25.009 — 14.25.220.




Secs. 14.25.015 — 14.25.037. Administrator; Powers of the administrator; Regulations; Duties of the administrator; Teachers’ Retirement Board; Hearings. [Repealed, § 132 ch 9 FSSLA 2005.]
Sec. 14.25.040. Membership; credited service.
 (a) Unless a teacher or member participates in a university retirement program under AS 14.40.661 — 14.40.799 or has elected under AS 14.25.540 to participate in the plan established in AS 14.25.310 — 14.25.590, a teacher or member contracting for service with a participating employer is subject to AS 14.25.009 — 14.25.220.

 (b) A state legislator who was an active member of this plan under other sections of AS 14.25.009 — 14.25.220 within the 12 months immediately preceding election to office may elect to be an active member of this plan for as long as the state legislator serves continuously as a state legislator subject to the requirements of (c) of this section, if, within 90 days after taking the oath of office,
     (1) the state legislator directs the employer in writing to
          (A) pay into this plan the employer contributions required for a member under AS 14.25.009 — 14.25.220; and

          (B) deduct from the state legislator’s salary and pay into this plan
               (i) the employee contributions required for a member under AS 14.25.009 — 14.25.220; and

               (ii) an amount equal to the difference between the total employer and state contributions required for a member under AS 14.25.009 — 14.25.220 and the employer contributions which would be required under the public employees’ retirement system (AS 39.35) if the legislator were covered under that system; and

     (2) notice is given the administrator in writing.

 (c) A state legislator is not entitled to elect membership under (b) of this section if the state legislator is covered for the same period of service under the public employees’ retirement system (AS 39.35). An election of membership under (b) of this section is retroactive to the date the state legislator took the oath of office. A state legislator may not receive membership credit under (b) of this section for legislative service performed before the legislative session during which the state legislator elected membership under (b) of this section. In order to continue in membership service under (b) of this section, the state legislator must earn at least 0.3 years of membership service under other sections of AS 14.25.009 — 14.25.220 during each five-year period. A state legislator may not receive membership credit under AS 14.25.009 — 14.25.220 for legislative service on or after the date the legislator commits a criminal offense from which a pension forfeiture under AS 37.10.310 results.

 (d) A person who is employed at least half-time in the plan during the same period that the person is employed at least half-time in a position in the public employees’ retirement plan under AS 39.35.095 — 39.35.680 shall receive credited service under each plan for half-time employment. However, the amount of credited service a person receives under the public employees’ retirement plan during a school year may not exceed the amount necessary, when added to the amount of credited service earned during the school year under the plan, to equal one year of credited service. A person who was employed at least half-time in a position in the public employees’ retirement plan under AS 39.35.095 — 39.35.680 in the same period that the person was employed at least half-time in a position in this plan may claim credited service in both plans for employment before May 31, 1989. To obtain this credited service, the person shall claim the service and verify the period of half-time employment. When eligibility for half-time service credit has been established, an indebtedness shall be determined to the retirement plan in which the person did not participate. The amount of the indebtedness is the full actuarial cost of providing benefits for the credited service claimed. Interest as prescribed by regulation accrues on that indebtedness beginning on the later of July 1, 1989, or the date on which the member is first eligible to claim the service. Any outstanding indebtedness existing at the time the person retires will require an actuarial adjustment to the benefits payable based on that service.

 (e) A teacher who is assaulted while on the job, who files for benefits under AS 23.30, and who, as a result of a physical injury from the assault, is placed on leave without pay, whether or not the teacher is receiving benefits under AS 23.30 for the injury, is entitled to accrue credited service while the teacher, because of the injury, is on leave-without-pay status or is receiving workers’ compensation benefits under AS 23.30. Entitlement to earn credited service under this subsection ends when the teacher is eligible to receive benefits under AS 14.25.110(a) or 14.25.130(a).




Sec. 14.25.043. Reemployment of retired members.
 (a) If a retired member again becomes an active member, benefit payments may not be made during the period of reemployment. The retirement benefit must be suspended for the entire school year if the teacher is reemployed as an active teacher for a period equivalent to a year of service. During the period of reemployment, deductions from the member’s salary will be made in accordance with AS 14.25.050.

 (b) [Repealed, § 12 ch 57 SLA 2001 as amended by § 6 ch 15 SLA 2003 and § 10 ch 50 SLA 2005.]
 (c) Upon subsequent retirement, the retired member is entitled to receive an additional benefit based on the credited service and the average base salary during the period of reemployment in accordance with AS 14.25.110. If the initial benefit payments to which the retired member is eligible have been actuarially reduced because the member retired early under AS 14.25.110(b), the member shall also receive an incremental benefit based on the amount of the actuarial reduction imposed by AS 14.25.110(j) on the first benefit and the length of time that the employee was reemployed and not receiving retirement benefits. The amount of the incremental benefit is equal to the difference between the normal retirement benefit to which the member would have been entitled had the member taken a normal retirement and the early retirement benefit that the member has been receiving based on the member’s initial period of employment multiplied by the total number of months that the member did not receive retirement benefits because of reemployment and that amount actuarially adjusted to be paid over the expected lifetime of the member.

 (d) A member who retired under AS 14.25.110(a) and participated in a retirement incentive program under ch. 26, SLA 1986; ch. 89, SLA 1989; ch. 65, SLA 1996; ch. 4, FSSLA 1996; or ch. 92, SLA 1997, who is subsequently reemployed as a commissioner may become an active member without losing the incentive credit provided under the applicable retirement incentive plan and is not subject to any related reemployment indebtedness.

 (e) [Repealed, § 6 ch 15 SLA 2003 as amended by § 10 ch 50 SLA 2005.]




Sec. 14.25.045. Participation by National Education Association employees. [Repealed, § 116(a) ch 20 SLA 2007.]
Sec. 14.25.047. Participation by Special Education Service Agency employees.
An employee of the Special Education Service Agency may participate in the plan under AS 14.25.009 — 14.25.220 if
     (1) the employee possesses or is eligible to possess a teacher certificate under AS 14.20.020; and

     (2) the employee pays all retroactive contributions required to be made under AS 14.25.009 — 14.25.220.




Sec. 14.25.048. Teachers of Alaska Native language and culture.
 (a) Except as provided in (d) of this section, an employee employed by a participating employer on or after June 5, 1988, shall participate in the plan under AS 14.25.009 — 14.25.220 if the employee
     (1) teaches Alaska Native language or culture in a permanent full-time or permanent part-time position;

     (2) learned about the subject to be taught by living in the culture or using the language in daily life; and

     (3) is qualified to teach the subject to elementary or secondary students as required by regulations adopted by the Department of Education and Early Development.

 (b) An employee or former employee may receive credit for retroactive membership service for employment before June 5, 1988 if the employee or former employee met the requirements listed in (a) of this section at the time of the employment. To receive credit for the retroactive membership service, the employee or former employee shall claim the service and pay the retroactive contributions required under AS 14.25.061. However, an employee or former employee may not receive retroactive credit under this subsection if the employee received credited service under AS 39.35 for the employment.

 (c) An employee or former employee who received credit under AS 39.35 for service that qualifies under (a) of this section may elect to transfer those periods of employment to the plan. To receive credit for retroactive membership service under this subsection, the employee or former employee shall claim the service and pay the retroactive contributions required under AS 14.25.061.

 (d) Notwithstanding (a) of this section, an employee employed as a teacher of Alaska Native language and culture and participating in the Public Employees’ Retirement System under AS 39.35 on the day before June 5, 1988 shall remain a member under AS 39.35 unless the employee elects to become a member of the Teachers’ Retirement System on or before September 3, 1988.




Sec. 14.25.050. Contributions by members.
 (a) Except as provided in (c) of this section, beginning January 1, 1991, each member shall contribute to the plan an amount equal to 8.65 percent of the member’s base salary accrued from July 1 to the following June 30. The employer shall deduct the contribution from the member’s salary at the end of each payroll period, and the contribution shall be credited by the plan to the member contribution account. The contributions shall be deducted from employee compensation before the computation of applicable federal taxes and shall be treated as employer contributions under 26 U.S.C. 414(h)(2). A member may not have the option of making the payroll deduction directly in cash instead of having the contribution picked up by the employer.

 (b) Each teacher is entitled to receive credit for unrefunded contributions paid into the retirement fund of 1945.

 (c) The employer of a teacher who, because of a physical injury caused by an on-the-job assault, is on unpaid leave of absence or is receiving benefits under AS 23.30 shall pay the teacher’s contributions required by this section while the teacher is on unpaid leave or receiving the workers’ compensation benefits.

 (d) A teacher who is placed on leave of absence without pay because the teacher is unable to work due to an on-the-job injury or occupational illness for which the teacher is receiving benefits under AS 23.30 and for which the teacher is not entitled to credited service under AS 14.25.040(e) may elect to receive credited service for the time on leave of absence without pay status. When a teacher elects to receive credited service under this subsection, an indebtedness is established. The amount of the indebtedness is equal to the contributions that the teacher would have made if the teacher had been working. Interest as prescribed by regulation accrues on the indebtedness beginning on the date that the teacher returns to work or terminates employment. If there is an outstanding indebtedness at the time the teacher is appointed to retirement, benefits shall be actuarially adjusted.




Sec. 14.25.055. Supplemental contributions by teachers.
If a teacher first joined the plan before July 1, 1982, and is married or has a minor child and wishes to make a spouse or minor child eligible for a spouse’s pension or a survivor’s allowance, the teacher may elect to make a supplemental contribution of an additional one percent of the teacher’s base salary within 90 days of the teacher’s entry into participation in the plan, or within 90 days of marriage, or within 90 days of the birth or adoption of a child dependent upon the teacher. Once an election is made under this section, supplemental contributions must be made whenever contributions are required under AS 14.25.050 unless the teacher executes a written waiver with the administrator. The execution of a waiver relinquishes all rights and benefits previously accrued under AS 14.25.162 and 14.25.164.


Sec. 14.25.060. Arrearage indebtedness.
 (a) If a member first joined the plan before July 1, 1990, and has military service or Alaska Bureau of Indian Affairs (BIA) service, or if a member joined the plan before July 1, 1978, and has creditable outside service, the member may claim this service. If the member claims the service, the member is indebted to the plan as follows:
     (1) at the time of first becoming a member of the plan, the arrearage indebtedness is seven percent of the base salary multiplied by the total number of years of creditable outside, military, and Alaska BIA service; the administrator shall add compound interest at the rate prescribed by regulation to the arrearage indebtedness beginning July 1, 1963, or at the time the member first becomes eligible to claim the service, whichever is later, to the date of payment or the date of retirement, whichever occurs first;

     (2) if a member terminates from the plan and is subsequently reemployed as a member, the arrearage indebtedness to the plan for outside, military, or Alaska BIA service accumulated in the interim is seven percent of the base salary upon reentering membership service, multiplied by the number of years of interim outside, military, and Alaska BIA service; compound interest at the rate prescribed by regulation shall be added to the arrearage indebtedness beginning July 1, 1963, or the date of reemployment as a member, whichever is later, to the date of payment or the date of retirement, whichever occurs first.

 (b) If a member joins the plan on or after July 1, 1978, and has creditable outside service, the member may claim this service. If claimed, the member is indebted to the plan as follows:
     (1) The arrearage indebtedness is the full actuarial cost of providing benefits for the service being claimed. Compound interest at the rate prescribed by regulation shall be added to the arrearage indebtedness beginning the date the actuarial cost is established to the date of payment or the date of retirement, whichever occurs first.

     (2) If a member terminates from the plan and is subsequently reemployed as a member, the arrearage indebtedness for outside service during the interim is the full actuarial cost of providing benefits for the interim service being claimed. Compound interest at the rate prescribed by regulation shall be added to the arrearage indebtedness beginning the date the actuarial cost is established to the date of payment or the date of retirement, whichever occurs first.

 (c) The total military service claimed may not exceed five years. The combined total of outside and military service may not exceed 10 years, except that, if entry into the armed forces is immediately preceded by membership service and within one year after discharge is continued by membership service, that service may not be counted for purposes of determining the applicability of the 10-year limitation on the combined total of outside and military service.

 (d) If a member first joined the plan on or after July 1, 1990, and has military service or Alaska BIA service, the member’s indebtedness shall be determined under (a) of this section except that the percentage multiplier is 8.65 percent.




Sec. 14.25.061. Retroactive indebtedness.
 (a) A member who was not subject to the provisions of AS 14.25.009 — 14.25.220, but who becomes subject to them because of a legislative change, may elect to receive credit for retroactive membership service by contributing to the plan an amount equal to the contributions the member would have made had the member been subject to the provisions of AS 14.25.009 — 14.25.220 for those years of retroactive service after June 30, 1955. Retroactive contributions are not required for retroactive membership service before July 1, 1955. Compound interest at the rate prescribed by regulation shall be added to the retroactive indebtedness from July 1, 1966, or the time of first becoming eligible under AS 14.25.009 — 14.25.220, whichever is later, to the date of payment or the date of retirement, whichever occurs first.

 (b) If retroactive indebtedness contributions have been made for retroactive service before July 1, 1955, the member is entitled to a refund of those retroactive membership indebtedness contributions.

 (c) [Repealed, § 133 ch 9 FSSLA 2005.]




Sec. 14.25.062. Reinstatement indebtedness. [Repealed, § 133, ch 9 FSSLA 2005.]
Sec. 14.25.063. Payment of indebtedness.
 (a) In AS 14.25.009 — 14.25.220, a member does not have to be reemployed under this plan in order to make indebtedness payments. However, except as provided in (d) of this section, a former member must be reemployed under this plan in order to make indebtedness payments. Payments apply first to accrued interest and then to principal.

 (b) Any outstanding indebtedness that exists at the time a member is appointed to retirement will necessitate an actuarial adjustment to the benefits payable based on the member’s corresponding service.

 (c) If, as a result of service credit claimed for which there is a corresponding indebtedness existing at retirement, the member’s retirement benefit is actuarially reduced and the resulting benefit is less than it would have been if the service credit had not been claimed, the retirement benefit shall be equal to the amount it would have been had the service credit never been claimed.

 (d) A former member who received a total refund of the member’s contribution account balance because of a levy under AS 09.38.065 or a federal tax levy may make indebtedness payments under this section.




Sec. 14.25.065. Transmittal of contributions; claims against funds of an employer.
 (a) All contributions deducted in accordance with AS 14.25.050 and 14.25.055 shall be transmitted to the plan for deposit in the retirement fund no later than 15 days following the close of the payroll period, with the final contributions due for any school year transmitted no later than July 15.

 (b) The contributions of employers under AS 14.25.070 must be transmitted to the plan for deposit in the retirement fund and the Alaska retiree health care trust at the close of each pay period. If the contributions are not submitted within the prescribed time limit, interest must be assessed on the outstanding contributions at one and one-half times the most recent actuarially determined rate of earnings for the plan from the date that contributions were originally due. Amounts due from an employer and interest as prescribed in this section may be claimed by the administrator from any agency of the state or political subdivision that has in its possession funds of the employer or that is authorized to disburse funds to the employer that are not restricted by statute or appropriation to a specific purpose. The amount claimed shall be certified by the administrator as sufficient to pay the contributions and interest due from the employer. The amount claimed shall be submitted to the administrator for deposit in the retirement fund and the Alaska retiree health care trust.




Sec. 14.25.070. Contributions by employers.
 (a) Each employer shall contribute to the system every payroll period an amount calculated by applying a rate of 12.56 percent to the total of all base salaries paid by the employer to active members of the system, including any adjustments to contributions required by AS 14.25.173(a).

 (b) The employer shall transmit the contributions calculated in (a) of this section to the administrator in accordance with AS 14.25.065. The administrator shall allocate contributions received for full payment of
     (1) the actuarially determined employer normal cost for the plan; and

     (2) all contributions required by AS 14.25.350 and AS 39.30.370 for the fiscal year.

 (c) If, after allocation of contributions under (b) of this section, a portion of the employer contributions remains, the administrator shall apply that remaining portion toward payment of the past service liability of the plan.

 (d) Notwithstanding (a) of this section, the annual employer contribution rate may not be less than the rate sufficient to allow payment of the employer normal cost and the employer contributions required under AS 14.25.350 and AS 39.30.370.

 (e) [Repealed, §§ 83, 84, and 86, ch. 41, SLA 2009.]
 (f) All or a portion of the employer’s share of any accrued actuarial liability to the plan may be prepaid in a lump sum. The commissioner of administration may, by regulation, establish a minimum amount for the lump sum payment of a portion. The administrator shall charge to the employer appropriate and reasonable administrative costs to the plan attributable to a lump sum payment that are not greater than administrative costs applied to other employer contributions. If an employer is grouped with any other employer in accounting for contributions, the lump sum payment for the employer shall be accounted for separately in accordance with regulations adopted by the commissioner. The regulations must provide for crediting to each lump sum payment account all earnings and losses received from investment of that payment. The lump sum payment shall be used solely to offset contributions under this section required of the employer for which the payment was made, taking into account earnings and losses from its investment. A lump sum payment made by or on behalf of an employer under this subsection, together with all earnings and losses from investment of that payment, may not be considered in calculating that employer’s share of any discretionary payment authorized by the state that benefits multiple employers.

 (g) If all or a portion of an employer’s share of any accrued actuarial liability to the plan is prepaid in a lump sum under (f) of this section, the administrator shall calculate a revised employer contribution rate for that employer in recognition of that prepayment not more than 30 days following the prepayment.

 (h) In this section, “normal cost” means the cost of providing the benefits expected to be credited, with respect to service, to all active members of the plan during the year beginning after the last valuation date.




Sec. 14.25.075. Purchase of credited service.
 (a) An employee who is eligible to purchase credited service under AS 14.25.047 or 14.25.048, a member who is eligible to purchase credited service under AS 14.25.048, 14.25.050, 14.25.060, 14.25.061, 14.25.100, or 14.25.107, or a teacher who is eligible to purchase credited service under AS 14.20.345, AS 14.25.050, or 14.25.105, in lieu of making payments directly to the plan, may elect to have the member’s employer make payments as provided in this section.

 (b) A member may elect to have the employer make payments for all or any portion of the amounts payable for the member’s purchase of credited service through a salary reduction program as follows:
     (1) the amounts paid under a salary reduction program are in lieu of contributions by the member making the election; the electing member’s salary or other compensation shall be reduced by the amount paid by the employer under this subsection;

     (2) the member shall make an irrevocable election under this subsection to purchase credited service as permitted in AS 14.20.345, AS 14.25.047, 14.25.048, 14.25.050, 14.25.060, 14.25.061, 14.25.100, 14.25.105, or 14.25.107 before the member’s termination of employment; the irrevocable election must specify the number of payroll periods that deductions will be made from the member’s compensation and the dollar amount of deductions for each payroll period during the specified number of payroll periods; the deductions made under this paragraph cease upon the earlier of the member’s termination of employment with the employer or the member’s death; amounts paid by an employer under (f) of this section may not be applied toward the payment of the dollar amount of the deductions representing the portion of the credited service that is being purchased by the member through payroll deduction in accordance with the member’s irrevocable election under this paragraph;

     (3) amounts paid by an employer under this subsection shall be treated as employer contributions for the purpose of determining tax treatment under 26 U.S.C. (Internal Revenue Code); the amounts paid by the employer under this section may not be included in the member’s gross income for income tax purposes until those amounts are distributed by refund or retirement benefit payments.

 (c) Unless otherwise provided, member contributions paid by the employer under this section are treated for all other purposes under the plan in the same manner and to the same extent as member contributions that are not paid by an employer under this section and AS 14.25.050. The plan may assess interest or administrative charges attributable to any salary reduction election made under this section. The interest or administrative charges shall be added to the contribution that is made to the plan by the member each payroll period, and that is paid by the employer. The interest or administrative charges may not be treated as member contributions for any purposes under AS 14.25.009 — 14.25.220, and a member or a member’s beneficiary does not have a right to the return of the interest or administrative charges under any other provision of this section. Interest assessed under this section shall be at the rate specified by regulations adopted by the administrator.

 (d) For plan fiscal years beginning on or after July 1, 2001, the requirements of AS 14.25.110(k) may not be applied to reduce the amount of credited service that may be purchased under this section by a member who first becomes an employee of the plan before July 1, 2001, to an amount that is less than the amount of credited service allowed to be purchased with the application of any of the limits prescribed in 26 U.S.C. 415.

 (e) Contributions to the plan to purchase credited service under this section do not qualify for treatment under this section if recognition of that service would cause a member to receive a retirement benefit for the same service from the plan and from one or more other retirement plans or systems of the state.

 (f) The administrator may accept rollover contributions from a member. Contributions made under this subsection may not be applied to purchase service being paid under (b) of this section. A rollover contribution as described in this subsection shall be treated as employer contributions for the purpose of determining tax treatment under the Internal Revenue Code and may be made by any one or a combination of the following methods:
     (1) subject to the limitations prescribed in 26 U.S.C. 402(c), accepting eligible rollover distributions directly from one or more eligible retirement plans as defined by 26 U.S.C. 402(c)(8)(B);

     (2) subject to the limitations prescribed in 26 U.S.C. 403(b)(13), accepting direct trustee-to-trustee transfers of all or a portion of the accounts of the member, on or after January 1, 2002, from a tax sheltered annuity described in 26 U.S.C. 403(b);

     (3) subject to the limitations prescribed in 26 U.S.C. 457(e)(17), accepting direct trustee-to-trustee transfers of all or a portion of the accounts of the member, on or after January 1, 2002, from an eligible deferred compensation plan of a tax-exempt organization or a state or local government described in 26 U.S.C. 457(b);

     (4) accepting direct trustee-to-trustee transfer from an account established for the benefit of the member in AS 39.30.150 — 39.30.180 (Alaska Supplemental Annuity Plan).

 (g) Payments made under this section shall be applied to reduce the member’s outstanding indebtedness described in AS 14.25.063 at the time that the contributions are received by the plan.

 (h) If a member retires before all payments are made under this section, the plan shall calculate the member’s benefits based only on the payments actually made with respect to the credited service purchased.

 (i) On satisfaction of the eligibility requirements of AS 14.20.345, AS 14.25.047, 14.25.048, 14.25.050, 14.25.060, 14.25.061, 14.25.100, 14.25.105, or 14.25.107, the requirements of this section, and the administrative filing requirements specified by the administrator, the plan shall adjust the member’s credited service history and add any additional service credits acquired.

 (j) After an election is made under this section, the election is binding on and irrevocable for the member and the member’s employer during the member’s remaining period of current employment. After a member makes an irrevocable election under this section, the member does not have the option of choosing to receive the contributed amounts directly in cash.




Sec. 14.25.080. Contributions by the state. [Repealed, § 25 ch 91 SLA 1987.]
Sec. 14.25.085. Additional state contributions.
In addition to the contributions that the state is required to make under AS 14.25.070 as an employer, the state shall contribute to the plan each July 1 or, if funds are not available on July 1, as soon after July 1 as funds become available, an amount for the ensuing fiscal year that, when combined with the total employer contributions that the administrator estimates will be allocated under AS 14.25.070(c), is sufficient to pay the plan’s past service liability at the contribution rate adopted by the board under AS 37.10.220 for that fiscal year.


Sec. 14.25.087. Contributions for medical benefits.
Contributions made by an employer under AS 14.25.070 and 14.25.085 shall be separately computed for benefits provided by AS 14.25.168 and shall be deposited in the Alaska retiree health care trust established under AS 39.30.097(a).


Sec. 14.25.090. Contributions by the state for arrearages. [Repealed, § 7 ch 66 SLA 1973.]
Sec. 14.25.100. Credit for service in the armed forces.
 (a) A member who served as an active member of the armed forces of the United States may receive credited service under this plan up to a maximum of five years if the member received a discharge under other than dishonorable conditions and is not entitled to receive retirement benefits from the United States government for the same service. Each 12 months of military service equals one school year, and lesser military periods will be determined for credit purposes in a proportionate ratio to a year. Credit for service in the armed forces shall be granted only if the member makes contributions for the service in the same manner as required for outside service under AS 14.25.060. The military service credited under this section shall be included in the 10-year limitation of outside service as specified in AS 14.25.060, except if entry into the armed forces is immediately preceded by Alaska membership service and following discharge is continued by Alaska membership service within one year thereafter, service may not be counted for purposes of determining the applicability of the 10-year limitation on outside service.

 (b) Where a member is unable to resume teaching in a public school within one year following discharge because of hospitalization, rehabilitation training, a disability derived while in the armed forces, or other like circumstances, the administrator shall determine the allowance or disallowance of any service in the armed forces.

 (c) [Repealed, § 7 ch 155 SLA 1976.]
 (d) [Repealed, § 7 ch 155 SLA 1976.]
 (e) A member may not be credited with the same period of service in the armed forces under this section if credit for that military service was granted under the public employees’ retirement system (AS 39.35). The combined period of military service claimed under this section and AS 39.35 may not exceed five years.




Sec. 14.25.105. Credit for service as an employee of the Territory of Alaska.
 (a) A teacher who completes 15 years of membership service under AS 14.25.009 — 14.25.220 may elect to receive credited service for employment rendered to the Territory of Alaska before January 3, 1959, regardless of the office, department, division or agency of the territory in which employed. Credited service allowed under this section may not exceed five years.

 (b) A teacher may not be credited with service under this section if credit for service as an employee of the Territory of Alaska was granted for the same period under AS 39.35 (public employees’ retirement system).

 (c) A teacher who elects to receive credited service under this section for service to the Territory of Alaska shall make a retroactive contribution under this plan for the period of territorial employment following June 30, 1955.




Sec. 14.25.107. Credit for Alaska BIA service.
A member who joins the plan on or after July 1, 1978, who has Alaska BIA service may claim all of that service as credited service. A retirement benefit payable under AS 14.25.009 — 14.25.220 for Alaska BIA service shall be reduced by an amount equal to the retirement benefits paid to the member by the United States government for the same service.


Sec. 14.25.110. Retirement benefits.
 (a) Subject to AS 14.25.167, a member is eligible for a normal retirement benefit if the member
     (1) was first hired before July 1, 1975, has attained the age of 55 years, and has at least 15 years of credited service, the last five of which have been membership service, or is otherwise vested in the plan;

     (2) has attained the age of 60 years and has at least eight years of membership service;

     (3) has attained the age of 60 years, has at least five years of membership service, and has Alaska BIA service which, when added to the membership service, will equal at least eight years;

     (4) has at least 25 years of credited service, the last five of which have been membership service;

     (5) has at least 20 years of membership service;

     (6) has at least 20 years of combined membership service and Alaska BIA service, the last five of which have been membership service; or

     (7) has, for each of 20 school years,
          (A) at least one-half year of membership service as a part-time teacher;

          (B) one full year of membership service as a full-time teacher; or

          (C) any combination of service qualified under this paragraph.

 (b) Subject to AS 14.25.167, a member is eligible for an early retirement benefit upon completing the service requirements in (a)(1) of this section and attaining the age of 50 years or upon completing the service requirements in (a)(2) or (3) of this section and attaining the age of 55 years.

 (c) The burden is on the applicant to prove eligibility for retirement benefits to the full satisfaction of the administrator.

 (d) The monthly amount of a retirement benefit for a member who has paid the full amount of any indebtedness is one-twelfth of the member’s average base salary during any three school years of membership service multiplied by
     (1) two percent of the years of credited service earned before June 30, 1990, including credited fractional years, and the years of credited service through a total of 20 years; plus

     (2) two and one-half percent of the years of credited service earned after June 30, 1990, that are more than 20 years of total credited service.

 (e) The monthly amount of a retirement benefit must be determined in accordance with (d) of this section as it is in effect on the date of termination of the retiring member’s last segment of employment.

 (f) [Repealed, § 47 ch 59 SLA 2002.]
 (g) [Repealed, § 47 ch 59 SLA 2002.]
 (h) [Repealed, § 47 ch 59 SLA 2002.]
 (i) Benefits payable under this section accrue from the first day of the month after which all of the following requirements are met: (1) the member meets the eligibility requirements of this section; (2) the member terminates employment; and (3) the member applies for retirement. Benefits are not payable under this section during a school year in which credit for a full year of service is granted. The benefits are payable the last day of the month. If payment is delayed, a retroactive payment must be made for the month in which a benefit is payable under this section. The last payment shall be for the month in which the member dies or is no longer eligible for a benefit under this section.

 (j) An actuarial adjustment must be made to benefits payable under (d) of this section for early retirement.

 (k) For plan fiscal years beginning after December 31, 1975, and notwithstanding any other provision of AS 14.25.009 — 14.25.220, the projected annual benefit provided by AS 14.25.009 — 14.25.220 and the benefit from all other defined benefit plans required to be aggregated with the benefits from this plan under the provisions of 26 U.S.C. 415 may not increase to an amount in excess of the amount permitted under 26 U.S.C. 415 at any time. In the event that any projected annual benefit of a member exceeds the limitation of 26 U.S.C. 415 for a limitation year, the plan shall take any necessary remedial action to correct an excess accrued annual benefit. The provisions of 26 U.S.C. 415, and the regulations adopted under that statute, as applied to qualified defined benefit plans of governmental employers are incorporated as part of the terms and conditions of the plan. This subsection applies to any member of this plan.

 (l) Notwithstanding (d) of this section,
     (1) for the plan fiscal years beginning on or after January 1, 1996, the base salary of a member who joined the plan after the first day of the first plan fiscal year beginning after December 31, 1995, that is used to calculate the member’s average base salary may not exceed $150,000, as adjusted for the cost of living in accordance with 26 U.S.C. 401(a)(17)(B); and

     (2) for plan fiscal years beginning on or after January 1, 2002, the base salary of a member that is used to calculate the member’s average base salary may not exceed $200,000, as adjusted for the cost of living in accordance with 26 U.S.C. 401(a)(17)(B).

 (m) Notwithstanding the definition of “base salary” in AS 14.25.220, in (l) of this section, for plan fiscal years beginning on or after January 1, 1998, and for purposes of 26 U.S.C. 415(b)(3) and the regulations adopted under that statute,
     (1) “base salary”
          (A) includes any amount that is contributed by the employer under a salary reduction agreement and that is not includable in the member’s gross income under 26 U.S.C. 125, 132(f)(4), 402(e)(3), 402(h), or 403(b); and

          (B) is limited to compensation that is actually paid to a member during the determination period;

     (2) “determination period” means the plan fiscal year.




Sec. 14.25.115. Unused sick leave credit.
 (a) A teacher in membership service on or after July 1, 1977, who is appointed to retirement on or after July 1, 1978, may elect to apply unused sick leave credit in computing the total number of years of credited service under AS 14.25.110(d) except for sick leave earned while participating in a university retirement program under AS 14.40.661 — 14.40.799. To obtain service credit for unused sick leave, a teacher must apply to the administrator not later than one year after appointment to retirement. Unused sick leave shall be credited on a day-for-day basis in accordance with the table for service after July 1, 1969, contained in AS 14.25.220(47). Teacher contributions may not be required for credited unused sick leave.

 (b) A teacher appointed to retirement before July 1, 1978, who returns to membership service on or after July 1, 1978, and is subsequently reappointed to retirement is eligible for unused sick leave credit only with respect to sick leave accrued during membership service on or after July 1, 1978.

 (c) Benefits payable under this section accrue from the first day of the month after which all the following requirements are met: (1) the teacher meets the eligibility requirements of this section; (2) the teacher’s written application for unused sick leave credit is received and verified by the administrator; and (3) a period of time has elapsed since the date of appointment to retirement equal to the amount of verified unused sick leave. Benefits are payable on the last day of the month.




Sec. 14.25.120. Manner of computing service retirement salary. [Repealed, § 50 ch 13 SLA 1980.]
Sec. 14.25.125. Conditional service retirement benefits.
 (a) Subject to AS 14.25.167, a member is eligible for a normal retirement salary at age 60 with at least
     (1) two years membership service if the member also is eligible for a normal retirement benefit under the public employees’ retirement system (AS 39.35); or

     (2) one year of membership service if the member is a retired member of the public employees’ retirement system.

 (b) Subject to AS 14.25.167, a member is eligible for an early retirement salary at age 55 with at least
     (1) two years of membership service if the member also is eligible for an early retirement benefit under the public employees’ retirement system (AS 39.35);

     (2) one year of membership service if the member is a retired member of the public employees’ retirement system.

 (c) Membership service for which contributions were refunded is not creditable under this section.

 (d) The monthly amount of a conditional service retirement benefit shall be calculated on the years of credited service in accordance with AS 14.25.110(d), except that a member may irrevocably elect to substitute “average monthly compensation” as defined in AS 39.35.680 in place of the member’s average base salary divided by 12.

 (e) Benefits payable under this section accrue from the first day of the month (1) in which the member meets the eligibility requirements of this section, (2) following the date of termination, and (3) following application for retirement, and are payable the last day of the month. If payment is delayed, a retroactive payment shall be made to cover the period of deferment. The last payment shall be made for the month in which the member dies or is no longer eligible for a benefit under this section.




Sec. 14.25.130. Disability benefits.
 (a) A member who has five or more years of membership service is eligible for a disability pension if, after July 1, 1966, and before the member’s normal retirement date, the member’s employment is terminated because of a permanent disability as defined in AS 14.25.220.

 (b) [Repealed, § 16 ch 13 SLA 1980.]
 (c) Once each year during the first five years following appointment to disability under this section, and once every three-year period thereafter, the administrator may require a disabled member who has not attained eligibility for normal retirement to undergo a medical or mental examination by a competent physician. The administrator shall suspend any disability benefit for a disabled member who refuses to undergo a physical or mental examination when requested under this section.

 (d) The amount of the disability benefit is equal to 50 percent of the member’s base salary immediately before becoming disabled. The disability benefit is increased by 10 percent of the member’s base salary immediately before becoming disabled for each dependent child, up to a maximum of four dependent children.

 (e) Benefits payable under this section accrue from the first day of the month after which the following requirements are met: (1) the member meets the eligibility requirements of this section; and (2) the member terminates employment. The benefits are payable the last day of the month. If payment is delayed, a retroactive payment must be made to cover the period of deferment. The last payment for a dependent child shall be for the month in which the child ceases to be a dependent child. The last payment for the disabled member shall be made for the month in which the disabled member recovers from the disability, dies, or is eligible for normal retirement.

 (f) A member is not entitled to a disability benefit under this section unless the member files a timely application for the benefit with the administrator. The application is timely if it is filed by the later of six months after the date that the member’s disability began or 90 days after the termination of the member’s employment. The administrator may waive a filing deadline under this subsection if there are extraordinary circumstances that resulted in the inability to meet the filing deadline. The administrator may delegate the authority to waive a filing deadline under this subsection to the administrator.




Secs. 14.25.135 — 14.25.140. Deferred retirement benefits; notification of intent to retire; manner of computing disability retirement salary. [Repealed, § 50 ch 13 SLA 1980.]
Sec. 14.25.142. Cost-of-living allowance.
 (a) While residing in the state, a person receiving a benefit under AS 14.25.009 — 14.25.220 who is at least 65 years of age or who is receiving a disability benefit under AS 14.25.009 — 14.25.220 is entitled to receive a monthly cost-of-living allowance in addition to the basic benefit. The amount of this allowance is 10 percent of the basic benefit.

 (b) A person receiving a cost-of-living allowance under this section shall notify the administrator when the person expects to be absent from the state for a continuous period that exceeds 90 days. After that notification, the person is no longer entitled to receive the monthly cost-of-living allowance, except that a person may be absent from the state for not more than six months without loss of the cost-of-living allowance if the absence is the result of illness and required by order of a licensed physician. Upon return to the state, and upon notification to the administrator, the person is again entitled to receive the monthly cost-of-living allowance, commencing with the first monthly benefit payment made after notification of the person’s return.

 (c) In this section, “residing in the state” means domiciled and physically present in the State of Alaska. A person’s status as “residing in the state” does not change if the person is absent from the state for a continuous period of
     (1) 90 days or less;

     (2) six months or less, when ordered by a physician to be absent from the state; or

     (3) any length of time while the person is a member of a reserve or auxiliary component of the armed forces of the United States, including the organized militia of Alaska consisting of the Alaska National Guard, the Alaska Naval Militia, and the Alaska State Defense Force, and is called to active duty by the appropriate state or federal authority.




Sec. 14.25.143. Post retirement pension adjustment.
 (a) Once each year, the administrator shall increase benefit payments to eligible disabled members, to persons age 60 or older receiving benefits under this plan in the preceding calendar year, and to persons who have received benefits under this plan for at least eight years who are not otherwise eligible for an increase under this section.

 (b) The increase in benefit payments applies to total benefit payments except for the cost-of-living allowance under AS 14.25.142. The amount of the increase is a percentage of the current benefit equal to
     (1) the lesser of 75 percent of the increase in the cost of living in the preceding calendar year or nine percent, for recipients who on July 1 are at least 65 years old and for members receiving disability benefits; and

     (2) the lesser of 50 percent of the increase in the cost of living in the preceding calendar year or six percent, for recipients who on July 1 are at least 60 but less than 65 years old or for recipients who on July 1 are less than 60 years old but who have received benefits from the plan for at least eight years.

 (c) If a recipient was not receiving benefits during the entire preceding calendar year, the increase in benefits under this section shall be adjusted by multiplying it by the fraction whose numerator is the number of months for which benefits were received in the preceding calendar year and whose denominator is 12.

 (d) If at the time of first receiving a retirement benefit, a member was receiving a disability benefit under this plan, the administrator shall, at the time the member is appointed to retirement, increase the retirement benefit by a percentage equal to the total cumulative percentage increase that has been applied to the member’s disability benefit under this section.

 (e) When computing a death benefit under AS 14.25.155, 14.25.157, or 14.25.160 or a survivor’s benefit under AS 14.25.162, 14.25.164, or 14.25.167, adjustments granted to the deceased member or survivor under this section shall be included in the computation.

 (f) An increase in benefit payments under this section is effective July 1 of each year and is based on the percentage increase in the consumer price index for urban wage earners and clerical workers for Anchorage, Alaska during the previous calendar year as determined by the United States Department of Labor, Bureau of Labor Statistics.




Sec. 14.25.145. Interest on individual accounts.
Interest shall be credited to each teacher’s account at the end of each school year at the rate prescribed by the board for that year.


Sec. 14.25.150. Refund upon termination.
 (a) Except as provided in (b) of this section, a terminated member is entitled to a refund of the balance of the member contribution account. A member is not entitled to a refund of supplemental contributions except as provided in AS 14.25.160(a).

 (b) A member who is terminated and is a vested member, deferred vested member, or who is entitled to benefits under AS 14.25.125, and who is married at the time of application for a refund or whose rights to a refund are subject to a qualified domestic relations order is entitled to receive a refund of the balance of the member contribution account only if the member’s present spouse and each person entitled under the order consent to the refund in writing on a form provided by the administrator. The administrator may waive written consent from the person entitled under the order if the administrator determines that the person cannot be located or for other reasons established by regulation. The administrator may waive written consent from the spouse if the administrator determines that
     (1) the member was not married to the spouse during any period of the member’s employment with an employer;

     (2) the spouse has no rights to benefits under AS 14.25.009 — 14.25.220 because of the terms of a qualified domestic relations order;

     (3) the spouse cannot be located;

     (4) the member and spouse have been married for less than two years and the member establishes that they are not cohabiting; or

     (5) another reason established by regulation exists.

 (c) A member who has received a refund of contributions in accordance with this section forfeits corresponding credited service under AS 14.25.009 — 14.25.220.




Sec. 14.25.153. Rights under qualified domestic relations order.
A former spouse shall be treated as a spouse or surviving spouse under AS 14.25.009 — 14.25.220 to the extent required by a qualified domestic relations order. Rights under the order do not take effect until the order is filed with the administrator.


Sec. 14.25.155. Nonoccupational death benefits.
 (a) If the death of a member occurs after completing less than one year of membership service and the proximate cause of death is not a bodily injury sustained or hazard undergone while in the performance and within the scope of the member’s duties of employment, the member’s designated beneficiary shall be paid the balance of the member contribution account.

 (b) If the death of a member occurs after completing at least one year of membership service but before becoming a vested member, and the proximate cause of death is not a bodily injury sustained or hazard undergone while in the performance and within the scope of the member’s duties of employment, the lump-sum death benefit described in AS 14.25.160(b) and (c) shall be paid to the designated beneficiary of the member.

 (c) If the death of a vested member or deferred vested member occurs and the proximate cause of death is not a bodily injury sustained or hazard undergone while in the performance and within the scope of the member’s duties of employment, the surviving spouse may elect to receive either the benefits described in (b) of this section or a 50 percent joint and survivor option as provided under AS 14.25.167(a)(2) based on credited service to the date of the member’s termination. If no spouse survives a vested or deferred vested member, or if a person other than the spouse is designated as beneficiary in accordance with AS 14.25.166, the administrator shall pay the designated beneficiary the benefits described in AS 14.25.160(b) and (c). Benefits accrue from the first day of the month following the member’s death and are payable the last day of the month.

 (d) Benefits are not payable under this section if benefits are payable under AS 14.25.157, 14.25.160, 14.25.162, 14.25.164, or 14.25.167.




Sec. 14.25.157. Occupational death benefits.
 (a) If (1) the death of a member occurs before the member first attains eligibility for normal retirement, and (2) the proximate cause of death is a bodily injury sustained or hazard undergone while in the performance and within the scope of the member’s duties of employment, and (3) the injury or hazard is not the proximate result of wilful negligence on the part of the member, the administrator shall pay a monthly survivor’s pension equal to 40 percent of the member’s base salary at the time of termination of employment, divided by 12, to the member’s surviving spouse. If there is no surviving spouse, the administrator shall pay the monthly survivor’s pension in equal parts to the dependent children of the member. On the date the normal retirement of the member would have occurred if the member had lived, monthly payments must equal the monthly amount of the normal retirement benefit to which the member, had the member lived and continued employment until the member’s normal retirement date, would have been entitled with an average base salary as existed at the member’s death and the credited service to which the member would have been entitled. If the member does not have a spouse or dependent children at the time of death or if the member designates as beneficiary under AS 14.25.166 someone other than the surviving spouse or dependent children, the administrator shall pay the member’s designated beneficiary those benefits available to a beneficiary under AS 14.25.160(b) and (c) and may not pay a benefit to the surviving spouse or dependent children.

 (b) The first payment of the surviving spouse’s pension or of a dependent child’s pension shall accrue from the first day of the month following the member’s death and is payable the last day of the month. The last payment shall be made for the last month in which there is an eligible surviving spouse or dependent child.

 (c) Benefits are not payable under this section if benefits are payable under AS 14.25.155, 14.25.160, 14.25.162, 14.25.164, or 14.25.167.

 (d) If a member’s death is caused by an act of assault, assassination, or terrorism directly related to the person’s status as a member, whether the act occurs on or off the member’s job site, the death shall be considered to have occurred in the performance of and within the scope of the member’s duties for purposes of (a)(2) of this section. If the expressed or apparent motive and intent of the perpetrator of the harm inflicted upon the member was due to the performance of the member’s job duties or employment as a member, the death shall be considered to be directly related to the member’s status as a member. A member’s job duties are those performed within the course and scope of the member’s employment with an employer.




Sec. 14.25.160. Death benefits.
 (a) A death benefit shall be paid and any supplemental contributions shall be refunded to the designated beneficiary, upon receipt of a valid claim and proof of the death of a member who
     (1) is not retired and is not eligible for benefits under AS 14.25.162 or 14.25.164; and

     (2) either
          (A) has made supplemental contributions under AS 14.25.055 since the date one year immediately preceding the member’s death or since July 1, 1983, whichever is later; or

          (B) is making supplemental contributions under AS 14.25.055 but has made them for less than one year.

 (b) Upon the death of an active member who meets the conditions specified in (a) of this section, the amount of the death benefit is the sum of the following less any retirement benefit previously received by the member:
     (1) the member contribution account;

     (2) $100 times the years of membership service;

     (3) $1,000; and

     (4) $500 if the deceased member is survived by one or more dependent children at the time of death and if the designated beneficiary is a dependent child of the member or is the parent or guardian of the dependent child of the member.

 (c) If the sum of (b)(2) and (3) of this section exceeds $3,000, only $3,000 may be added to amounts under (b)(1) and (4) in calculating the death benefit under (b) of this section.

 (d) Upon the death of an inactive member who meets the conditions specified in (a) of this section, the death benefit is the amount determined in (b)(1) of this section.

 (e) Upon the death of a disabled member who is not eligible for normal retirement and who meets the conditions specified in (a) of this section, the death benefit is the amount determined in (b) of this section.

 (f) Upon the death of a retired member who meets the conditions specified in (a) of this section, the death benefit is the amount determined in (b)(1) of this section less all retirement benefits paid to the deceased member.

 (g) If supplemental contributions have been made under AS 14.25.055, benefits may be payable under AS 14.25.162 or 14.25.164 if the deceased member meets the eligibility requirements of one of those sections.

 (h) Payment made to a beneficiary under this section is in place of any other benefit under AS 14.25.009 — 14.25.220.




Sec. 14.25.162. Survivor’s allowance.
 (a) If an active or disabled member dies and leaves a dependent child, and supplemental contributions have been made under AS 14.25.055 for at least one year of credited service, a survivor’s allowance is payable under (b) of this section. If a retired member or a deferred vested member dies and leaves a dependent child, and supplemental contributions have been made under AS 14.25.055 for at least five years of credited service, a survivor’s allowance is payable under (b) of this section. Application for the survivor’s allowance must be made in writing to the administrator.

 (b) A survivor’s allowance is payable under this section as follows:
     (1) an allowance of 10 percent of the member’s base salary immediately before the member’s death, retirement, or disability shall be paid for each dependent child; if there are four or more dependent children, the total amount paid to those children is 40 percent of the member’s base salary before the member’s death, retirement, or disability, paid in equal amounts to each child; the allowance shall be recomputed for the month in which the number of dependent children is less than four and the benefits shall be decreased accordingly; the adoption of a dependent child does not terminate the survivor’s allowance payable under this section;

     (2) an allowance of 35 percent of the member’s base salary shall be paid to the member’s surviving spouse as long as there is an eligible dependent child, as determined under (b)(1) of this section, for whom the surviving spouse is legally responsible; if there is no surviving spouse, an allowance of 10 percent of the member’s base salary shall be paid to each court-appointed guardian, not to exceed one allowance for each child or for each group of children who have the same guardian or joint guardians;

     (3) when no further benefits are payable under this section, the difference between the amount that would have been paid under AS 14.25.160 and any payments made to the member, spouse, guardian, or dependent children under this section shall be paid to those beneficiaries described in AS 14.25.166;

     (4) benefits are not payable under this section if benefits are payable under AS 14.25.155, 14.25.157, 14.25.164, or 14.25.167.

 (c) The survivor’s allowance accrues from the first day of the month following the death of a member and is payable on the last day of the month. If payment is delayed, a retroactive payment must be made for the month in which a benefit is payable under this section. The last payment is for the month in which a benefit is payable under this section.




Sec. 14.25.163. Rollover distributions and rollover contributions.
 (a) A distributee may elect, at the time and in the manner prescribed by the administrator, to have all or part of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in the direct rollover.

 (b) Except as provided by AS 14.25.075(f), the plan does not accept contributions of eligible rollover distributions.

 (c) In this section,
     (1) “direct rollover” means the payment of an eligible rollover distribution by the plan to an eligible retirement plan specified by a distributee who is eligible to elect a direct rollover;

     (2) “distributee” means a member or a beneficiary who is the surviving spouse of the member or an alternate payee;

     (3) “eligible retirement plan” means
          (A) an individual retirement account described in 26 U.S.C. 408(a);

          (B) an individual retirement annuity defined in 26 U.S.C. 408(b);

          (C) an annuity plan described in 26 U.S.C. 403(a);

          (D) a qualified trust described in 26 U.S.C. 401(a);

          (E) on and after January 1, 2002, an annuity plan described in 26 U.S.C. 403(b);

          (F) on or after January 1, 2002, a governmental plan described in 26 U.S.C. 457(b); or

          (G) on or after January 1, 2008, a Roth IRA described in 26 U.S.C. 408A;

     (4) “eligible rollover distribution” means a distribution of all or part of a total account to a distributee, except for
          (A) a distribution that is one of a series of substantially equal installments payable not less frequently than annually over the life expectancy of the distributee or the joint and last survivor life expectancy of the distributee and the distributee’s designated beneficiary, as defined in 26 U.S.C. 401(a)(9);

          (B) a distribution that is one of a series of substantially equal installments payable not less frequently than annually over a specified period of 10 years or more;

          (C) a distribution that is required under 26 U.S.C. 401(a)(9);

          (D) the portion of any distribution that is not includable in gross income; however, a portion under this subparagraph may be transferred only to an individual retirement account or annuity described in 26 U.S.C. 408(a) or (b), to a qualified plan described in 26 U.S.C. 401(a) or 403(a), or to an annuity contract described in 26 U.S.C. 403(b), that agrees to separately account for amounts transferred, including separately accounting for the portion of the distribution that is includable in gross income and the portion of the distribution that is not includable in gross income; and

          (E) other distributions that are reasonably expected to total less than $200 during a year.




Sec. 14.25.164. Spouse’s pension.
 (a) If an active or disabled member dies, a pension is payable to the member’s spouse if the member made supplemental contributions under AS 14.25.055 for at least one year of credited service. If a retired member or deferred vested member dies, a pension is payable to the member’s spouse if the member made supplemental contributions under AS 14.25.055 for at least five years of credited service. Application for the spouse’s pension must be made in writing to the administrator.

 (b) A spouse’s pension is payable under this section as follows:
     (1) a spouse’s pension is equal to 50 percent of the retirement benefit that the deceased member was receiving; if the member was not receiving a retirement benefit, the spouse’s pension is equal to 50 percent of the amount the member would have received, based on the member’s average base salary and credited service to the date of the member’s death and assuming that the member would have been eligible for a normal retirement benefit as of that date;

     (2) in the event of the death of a member’s spouse who is receiving a spouse’s pension, the difference between the amount that would have been paid under AS 14.25.160 and any payments made to the member, spouse, guardian, or dependent children shall be paid to those beneficiaries described in AS 14.25.166;

     (3) benefits are not payable under this section if benefits are payable under AS 14.25.155, 14.25.157, 14.25.162, or 14.25.167.

 (c) The spouse’s pension accrues from the first day of the month following the death of a member and is payable on the last day of the month. If payment is delayed, a retroactive payment must be made for the month in which a benefit is payable under this section. The last payment is for the month in which the spouse dies.




Sec. 14.25.165. Distribution requirements.
 (a) The entire interest of a member must be distributed or must begin to be distributed not later than the member’s required beginning date.

 (b) If a member dies after the distribution of the member’s interest has begun but before the distribution has been completed, the remaining portion of the interest shall continue to be distributed at least as rapidly as under the method of distribution being used before the member’s death.

 (c) If a member has made a distribution election and dies before the distribution of the member’s interest begins, distribution of the member’s entire interest shall be completed by December 31 of the calendar year containing the fifth anniversary of the member’s death. However, if any portion of the member’s interest is payable to a designated beneficiary, distributions may be made over the life of the designated beneficiary or over a period certain not greater than the life expectancy of the designated beneficiary, commencing on or before December 31 of the calendar year immediately following the calendar year in which the member died, and, if the designated beneficiary is the member’s surviving spouse, the date distributions are required to begin may not be earlier than the later of December 31 of the calendar year (1) immediately following the calendar year in which the member died, or (2) in which the member would have attained 70 1/2 years of age, whichever is earlier. If the surviving spouse dies after the member but before payments to the spouse have begun, the provisions of this subsection apply as if the surviving spouse were the member. An amount paid to a child of the member will be treated as if it were paid to the surviving spouse if the amount becomes payable to the surviving spouse when the child reaches the age of majority.

 (d) If a member has not made a distribution election before the member’s death, the member’s designated beneficiary must elect the method of distribution not later than December 31 of the calendar year (1) in which distributions would be required to begin under this section, or (2) that contains the fifth anniversary of the date of death of the member, whichever is earlier. If the member does not have a designated beneficiary or if the designated beneficiary does not elect a method of distribution, distribution of the member’s entire interest must be completed by December 31 of the calendar year containing the fifth anniversary of the member’s death.

 (e) For purposes of (c) of this section, distribution of a member’s interest is considered to begin (1) on the member’s required beginning date, or (2) if the designated beneficiary is the member’s surviving spouse and the surviving spouse dies after the member but before payments to the spouse have begun, on the date distribution is required to begin to the surviving spouse. If distribution in the form of an annuity irrevocably commences to the member before the required beginning date, the date distribution is considered to begin is the date that the distribution actually commences.

 (f) Notwithstanding any contrary provisions of AS 14.25.009 — 14.25.220, the requirements of this section apply to all distributions of a member’s interest and take precedence over any inconsistent provisions of AS 14.25.009 — 14.25.220.

 (g) All distributions required under this section are determined and made in accordance with 26 U.S.C. 401(a)(9) and regulations adopted under that statute, including any minimum distribution incidental benefit requirement.

 (h) Unless otherwise specified, the provisions of this section apply to calendar years beginning on or after January 1, 1983.

 (i) In this section,
     (1) “designated beneficiary” means the individual who is designated as the beneficiary under the plan in accordance with 26 U.S.C. 401(a)(9) and regulations adopted under that statute;

     (2) “required beginning date” means the first day of April of the calendar year following the calendar year in which the member either attains 70 1/2 years of age or actually retires, whichever is later.




Sec. 14.25.166. Designation of beneficiary.
 (a) Each member shall designate the beneficiary or beneficiaries to whom the administrator shall distribute benefits payable under AS 14.25.009 — 14.25.220 as a consequence of the member’s death. Notwithstanding a previous designation of beneficiary, a person who is the spouse of a member at the time of the member’s death automatically becomes the designated beneficiary if the spouse was married to the member during part of the member’s employment for an employer
     (1) except to the extent a qualified domestic relations order filed with the administrator provides for payment to a former spouse or other dependent of the member; or

     (2) unless the member filed a revocation of beneficiary accompanied by a written consent to the revocation from the present spouse and each person entitled under the order; however, consent of the present spouse is not required if the member and the present spouse had been married for less than two years on the date of the member’s death and if the member established when filing the revocation that the member and the present spouse were not cohabiting.

 (b) Except as provided in (a) of this section, the member may change or revoke the designation without notice to the beneficiary or beneficiaries at any time. If a member designates more than one beneficiary, each shares equally unless the member specifies a different allocation or preference. The designation of a beneficiary, a change or revocation of a beneficiary, and a consent to revocation of a beneficiary shall be made on a form provided by the administrator and is not effective until filed with the administrator.

 (c) If a member fails to designate a beneficiary, or if no designated beneficiary survives the member, the death benefit shall be paid
     (1) to the surviving spouse or, if there is none surviving,

     (2) to the surviving children in equal parts or, if there are none surviving,

     (3) to the surviving parents in equal parts or, if there are none surviving,

     (4) to the estate.

 (d) A person claiming entitlement to benefits payable under AS 14.25.009 — 14.25.220 as a consequence of a member’s death shall provide the administrator with a marriage certificate, divorce or dissolution judgment, or other evidence of entitlement. Documents establishing entitlement may be filed with the administrator immediately after a change in the member’s marital status. If the administrator does not receive notification of a claim before the date 10 days after the member’s death, the person claiming entitlement is not entitled to receive from the division of retirement and benefits any benefit already paid by the administrator.




Sec. 14.25.167. Joint and survivor option.
 (a) Benefits payable under this section are in place of benefits payable under AS 14.25.110, 14.25.125, 14.25.155, 14.25.157, 14.25.160, 14.25.162, or 14.25.164. Upon filing an application for retirement with the administrator, or when a disabled member becomes eligible for normal retirement under AS 14.25.130(e), the member shall designate the person who is the member’s spouse at the time of appointment to retirement as the contingent beneficiary. However, if the designation of the spouse is revoked under (c) of this section, the member may designate a dependent approved by the administrator as the contingent beneficiary or may take normal or early retirement under AS 14.25.110 or 14.25.125. The administrator shall pay benefits under the option elected by the member. The member may elect an option that provides that
     (1) the member is entitled to receive a reduced benefit payable for life, and, after the member’s death, the contingent beneficiary is entitled to receive payments in the amount of 75 percent of the reduced benefit for life;

     (2) the member is entitled to receive a reduced benefit payable for life, and, after the member’s death, the contingent beneficiary is entitled to receive payments in the amount of 50 percent of the reduced benefit for life; or

     (3) the member is entitled to receive a reduced benefit payable during the joint lifetime of the member and the contingent beneficiary, and, after the death of either the member or the contingent beneficiary, the survivor is entitled to receive payments in the amount of 66-2/3 percent of the reduced benefit for life.

 (b) The aggregate of the pension payments expected to be paid to a member and the member’s contingent beneficiary under the options set out in (a) of this section shall be the actuarial equivalent of the pension that the member is otherwise entitled to receive upon retirement.

 (c) A member may elect or change an option without the approval of the administrator if the member’s election or change is filed in writing with the administrator before the effective date of the member’s retirement. A member may revoke a joint and survivor option if the member files with the administrator before the effective date of the member’s retirement a revocation and a consent to the revocation signed by the member’s present spouse and each person entitled to benefits under a qualified domestic relations order on forms provided by the administrator. The administrator may waive the requirement for written consent from
     (1) a person entitled under the order if the person cannot be located or for another reason established by regulation; or

     (2) the spouse if
          (A) the member is not married;

          (B) the member was not married to the spouse during any period of the member’s employment with an employer;

          (C) the spouse has no rights to the option because of the terms of a qualified domestic relations order;

          (D) the spouse cannot be located;

          (E) the member and spouse have been married for less than two years and the member establishes that they are not cohabiting; or

          (F) another reason is established under regulations of the administrator.

 (d) A member, including a deferred vested member, may, regardless of age, elect a joint and survivor option any time before appointment to receive a retirement benefit.

 (e) If either the member or contingent beneficiary dies before the member is appointed to retirement, the election becomes inoperative. Once the member is appointed to retirement, the election is irrevocable, even if the retired member is reemployed. Any additional retirement benefit to which the reemployed member may become entitled will be paid in accordance with the initial election made under this section, unless the contingent beneficiary is deceased. If the contingent beneficiary is deceased, the benefits earned during the period of reemployment are subject to AS 14.25.110, or this section if another contingent beneficiary was designated during the period of reemployment. All other benefits earned during previous periods of employment are subject to the election at the time the member was appointed to retirement. If death occurs during the period of reemployment and the proximate cause of death is not a bodily injury sustained or hazard undergone while in the performance and within the scope of the member’s duties of employment, those benefits earned while reemployed are subject to AS 14.25.155(c). All other benefits earned during previous periods of employment are subject to the election at the time the member was appointed to retirement. If death occurs during the period of reemployment and the proximate cause of death is a bodily injury sustained or hazard undergone while in the performance and within the scope of the member’s duties of employment and the injury or hazard is not the proximate result of wilful negligence on the part of the member, all benefits earned during all periods of employment are subject to AS 14.25.157.

 (f) The member and any person claiming to be a contingent beneficiary shall file with the administrator a marriage certificate, divorce or dissolution judgment, or other evidence necessary to determine the applicability of this section and the identity of any contingent beneficiary.

 (g) If the administrator determines, based on the affidavit of the member and other evidence, that a member is eligible to elect a form of payment other than a joint and survivor option under this section, and no contrary evidence is presented to the administrator within 60 days after the effective date of the member’s retirement, no claim under this section, made by a spouse or former spouse of the member, may be paid if payment would result in an increase in actuarial liability to the plan.

 (h) If a member fails to elect an option under (a) of this section and no effective revocation is filed with the administrator, the member is considered to have elected the option provided in (a)(2) of this section.




Sec. 14.25.168. Medical benefits.
 (a) Except as provided in (c) of this section, the following persons are entitled to major medical insurance coverage under this section:
     (1) for teachers first hired before July 1, 1990,
          (A) a teacher who is receiving a monthly benefit from the plan and who has elected coverage;

          (B) the spouse and dependent children of the teacher described in (A) of this paragraph;

          (C) the surviving spouse of a deceased teacher who is receiving a monthly benefit from the plan and who has elected coverage;

          (D) the dependent children of a deceased teacher who are dependent on the surviving spouse described in (C) of this paragraph;

     (2) for teachers first hired on or after July 1, 1990,
          (A) a teacher who is receiving a monthly benefit from the plan and who has elected coverage for the teacher;

          (B) the spouse of the teacher described in (A) of this paragraph if the teacher elected coverage for the spouse;

          (C) the dependent children of the teacher described in (A) of this paragraph if the teacher elected coverage for the dependent children;

          (D) the surviving spouse of a deceased teacher who is receiving a monthly benefit from the plan and who has elected coverage;

          (E) the dependent children of a deceased teacher who are dependent on the surviving spouse described in (D) of this paragraph if the surviving spouse has elected coverage for the dependent children.

 (b) After an election of coverage under this section, major medical insurance coverage takes effect on the same date as retirement benefits begin and stops when the member or survivor is no longer eligible to receive a monthly benefit. The coverage for persons age 65 or older is the same as that available for persons under age 65. The benefits payable to those persons age 65 or older supplement any benefits provided under the federal old age, survivors and disability insurance program. The medical premium and optional insurance premiums owed by a member or survivor shall be deducted from the benefit owed to the member or survivor before payment of the benefit.

 (c) Receipt under a qualified domestic relations order of a monthly benefit from the plan does not entitle a person or the person’s spouse or child to insurance coverage under (a) of this section. However, a member’s former spouse who receives a monthly benefit under a qualified domestic relations order is entitled to receive major medical insurance coverage if the former spouse
     (1) elects the coverage within 60 days after the first monthly benefit paid under the order is mailed first class or otherwise delivered; and

     (2) pays the premium established by the administrator for the coverage.

 (d) A benefit recipient may elect major medical insurance coverage in accordance with regulations and under the following conditions:
     (1) a person who has less than 25 years of membership service and who is younger than 60 years of age must pay an amount equal to the full monthly group premium for retiree major medical insurance coverage;

     (2) a disabled member, a disabled member who is appointed to normal retirement, a person 60 years of age or older, or a person who has at least 25 years of membership service is not required to make premium payments.

 (e) The administrator shall inform members who have requested appointment to retirement that the health insurance coverage available to retired members may be different from the health insurance coverage provided to employees. The administrator shall also notify those members of time limits for selecting optional health insurance coverage and whether the election is irrevocable. A member who has requested appointment to retirement shall indicate in writing on a form provided by the administrator that the member has received the information required by this subsection and whether the member has chosen to receive optional health insurance coverage.

 (f) On and after July 1, 2007, benefits under this section shall be provided in part by the Alaska retiree health care trust established under AS 39.30.097(a).




Sec. 14.25.169. Duplicate benefits.
If payments from this retirement plan are due to a teacher or to the teacher’s spouse under more than one provision of this plan, the teacher or spouse shall elect under which provision and which benefit the teacher or spouse wishes to receive and no payments may be made under any other provision. However, benefits under AS 14.25.155, 14.25.157, 14.25.160, 14.25.162, 14.25.164, and 14.25.167 shall be paid in addition to those benefits or that service credit a person is entitled to receive because of the person’s own membership in the retirement plan. A teacher may not receive (1) duplicate credit under this plan for the same period of service, (2) more than one year of service credit in the course of a school year, or (3) a benefit while accruing service credit under this plan, except as provided in this section.


Sec. 14.25.170. Administration. [Repealed, § 132 ch 9 FSSLA 2005.]
Sec. 14.25.173. Adjustments.
 (a) When a change or error is made in the records maintained by the plan or in the contributions made on behalf of an employee or an error is made in computing a benefit, and, as a result, a teacher or member or beneficiary is entitled to receive from the plan more or less than the teacher or member or beneficiary would have been entitled to receive had the records or contributions been correct or had the error not been made, (1) the records, contributions, or error shall be corrected, and (2) as far as practicable, future payments or benefit entitlement shall be adjusted so that the actuarial equivalent of the pension or benefit to which the teacher or member or beneficiary was correctly entitled will be paid. An adjustment to contributions shall be picked up by the employer in accordance with AS 14.25.050 or treated as an adjustment to the employer’s contributions in accordance with this section, depending upon the nature of the adjustment. If no future benefit payments are due, a person who was paid any amount to which the person was not entitled is liable for repayment of that amount, and a person who was not paid the full amount to which the person was entitled shall be paid that amount.

 (b) An adjustment that requires the recovery of benefits may not be made under this section if
     (1) the incorrect benefit was first paid two years or more before the member or beneficiary was notified of the error;

     (2) the error was not the result of erroneous information supplied by the member or beneficiary; and

     (3) the member or beneficiary did not have reasonable grounds to believe that the amount of the benefit was in error.

 (c) At least quarterly, the administrator shall report to the commissioner of administration on all situations since the administrator’s last report in which an adjustment has been prohibited under (b) of this section. If the commissioner of administration finds that there is reason to believe that one or more of the conditions set out in (b) of this section have not been met, the administrator shall notify the member or beneficiary that an adjustment will be made to recover the overpayment. A member or beneficiary who receives notice of adjustment under this subsection may file a request with the commissioner of administration for a waiver of the adjustment under AS 14.25.175. An adjustment that requires the repayment of benefits may not be required while the waiver request is pending.

 (d) The plan shall pay interest on amounts owed to a member or beneficiary. Interest shall be charged on amounts owed to the plan by a member or beneficiary if the amount owed is the result of erroneous information supplied by the member or beneficiary, or the member or beneficiary had reasonable grounds to believe the amount of the benefit was in error. The interest paid under this subsection is at the rate established by regulation for indebtedness contributions owed. Interest accrues from the date on which the correct payment was due and continues until an actuarial adjustment to the benefit is effective or the amount owed is paid. Accrued interest for periods less than 60 days or in amounts less than the limit established in regulation for writing off small indebtedness and refund balances may not be collected or paid under this subsection.




Sec. 14.25.175. Waiver of adjustments.
 (a) Upon request by an affected member or beneficiary under (b) of this section, the commissioner of administration may waive an adjustment or a portion of an adjustment made under AS 14.25.173 if, in the opinion of the commissioner of administration,
     (1) the adjustment or portion of the adjustment will cause undue hardship to the member or beneficiary;

     (2) the adjustment was not the result of erroneous information supplied by the member or beneficiary;

     (3) before the adjustment was made, the member or beneficiary received confirmation from the administrator that the member’s or beneficiary’s records were correct; and

     (4) the member or beneficiary had no reasonable grounds to believe the records were incorrect before the adjustment was made.

 (b) In order to obtain consideration of a waiver under this section, the affected member or beneficiary shall file a request with the commissioner of administration in writing within 30 days after receipt of notice that the records have been adjusted. The ruling of the commissioner of administration shall be in writing.

 (c) A ruling of the commissioner of administration to deny a waiver under (b) of this section may be appealed to the office of administrative hearings.

 (d) The office of administrative hearings may reverse the commissioner of administration’s decision to deny a waiver and may impose conditions on granting a waiver that it considers equitable. These conditions may include requiring the member or beneficiary to make additional contributions to the plan.

 (e) [Repealed, § 132 ch 9 FSSLA 2005.]
 (f) [Repealed, § 57 ch 68 SLA 2000.]
 (g) [Repealed, § 57 ch 68 SLA 2000.]




Sec. 14.25.177. Effect of amendments; determination of benefits upon termination.
 (a) An amendment to AS 14.25.009 — 14.25.220 is not retroactive unless its retroactivity is expressly stated in the amendment.

 (b) The monthly amount of a benefit payable under AS 14.25.009 — 14.25.220 shall be determined in accordance with the provisions of AS 14.25.009 — 14.25.220 in effect on the date of termination of the member’s last segment of employment.




Sec. 14.25.180. Management and investment of fund. [Repealed, § 132 ch 9 FSSLA 2005.]
Sec. 14.25.181. Exclusive benefit; use of forfeitures; limitations.
 (a) The corpus or income of the assets held in trust as required by the plan may not be diverted to or used for other than the exclusive benefit of the members or their beneficiaries.

 (b) If, upon termination of the plan, all liabilities are satisfied, any excess assets shall be deposited in the general fund, subject to the approval of the termination by the Internal Revenue Service.

 (c) The administrator shall use forfeitures that arise for any reason, including from termination of employment or death, to reduce employer contributions. Forfeitures may not be applied to increase the benefits of any member.

 (d) The administrator shall determine the amount of any benefit that is determined on the basis of actuarial tables using assumptions approved by the commissioner of administration. The amount of benefits is not subject to employer discretion.

 (e) Employee contributions paid to, and retirement benefits paid from, the plan may not exceed the annual limits on contributions and benefits, respectively, allowed by 26 U.S.C. 415. Notwithstanding any contrary provision of law, the administrator may modify a request by a member to make a contribution to the plan if the amount of the contribution would exceed the limits provided in 26 U.S.C. 415 by using the following methods:
     (1) if the law requires a lump sum payment for the purchase of service credit, the administrator may establish a periodic payment plan for the member to avoid a contribution in excess of the limits under 26 U.S.C. 415(c) or (n);

     (2) if a periodic payment plan under (1) of this subsection will not avoid a contribution in excess of the limits imposed by 26 U.S.C. 415(c), the administrator may either reduce the member’s contribution to an amount within the limits of that section or refuse the member’s contribution.




Sec. 14.25.190. Management and investment of fund. [Repealed, § 132 ch 9 FSSLA 2005.]
Sec. 14.25.195. Special rules for treatment of qualified military service.
 (a) Notwithstanding any contrary provisions of AS 14.25.009 — 14.25.220, with respect to qualified military service, contributions shall be made and benefits and service credit shall be provided in accordance with 26 U.S.C. 414(u).

 (b) To the extent required by 26 U.S.C. 401(a)(37), if a member dies while performing qualified military service, as defined in 38 U.S.C. 43, the survivors of the member are entitled to any additional benefits that would have been provided to the survivors under the plan had the member resumed employment and then terminated employment on account of death. For purposes of this subsection, periods of qualified military service are not included in calculations of credited service.

 (c) Consistent with and to the extent required by 26 U.S.C. 414(u)(12), a member receiving differential wage payments from an employer shall be treated as employed by that employer, and the differential wage payment shall be treated as compensation for purposes of applying the limits on annual additions under 26 U.S.C. 415(b). For purposes of this subsection, “differential wage payment” means any payment that
     (1) is made by an employer to an individual with respect to any period during which the individual is performing service in the uniformed services, as defined in 38 U.S.C. 43, while on active duty for a period of more than 30 days; and

     (2) represents all or a portion of the wages the individual would have received from the employer if the individual were performing service for the employer.




Sec. 14.25.200. Exemption from taxation and process.
 (a) Except as provided in AS 29.45.030(a)(1) or in (c) of this section, member contributions and other amounts held in the plan on behalf of a member or other person who is or may become eligible for benefits under the plan are exempt from Alaska state and municipal taxes and are not subject to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, or charge of any kind, either voluntary or involuntary, before they are received by the person entitled to the amount under the terms of the plan. Any attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber, charge, or otherwise dispose of any right to amounts accrued in the plan is void. However, a member’s right to receive benefits or the member contribution account may be assigned
     (1) under a qualified domestic relations order;

     (2) to a trust or similar legal device that meets the requirements for a Medicaid-qualifying trust under AS 47.07.020(f) and 42 U.S.C. 1396p(d)(4); or

     (3) as provided in (c) of this section.

 (b) Member contributions and other amounts held in the plan and benefits payable under AS 14.25.009 — 14.25.220 are exempt from garnishment, execution, or levy as provided in AS 09.38 (exemptions).

 (c) An inactive member may elect to have the taxable portion of the member contribution account transferred directly to another plan or an individual retirement arrangement that is qualified under the federal Internal Revenue Code and that accepts the transfer.




Sec. 14.25.205. Time limit for application.
If an application for benefits or for refund has not been filed with the administrator by July 1 following the date on which an inactive member (except a member on leave of absence without pay) would attain age 75, or if an application for benefits or for refund has not been filed with the administrator within the 50 years following the most recent date on which the person was an active member, benefits or refunds may not be paid under AS 14.25.009 — 14.25.220 and the member’s records may be destroyed.


Sec. 14.25.210. Penalty for false statements.
 (a) A person who knowingly makes a false statement, or falsifies or permits to be falsified any record of this plan, in an attempt to defraud this plan, is guilty of a class A misdemeanor.

 (b) In this section, “knowingly” has the meaning given in AS 11.81.900(a).




Sec. 14.25.212. Pension forfeiture.
The provisions of AS 37.10.310 apply to pension benefits under AS 14.25.009 — 14.25.220.


Sec. 14.25.220. Definitions.
In AS 14.25.009 — 14.25.220, unless the context requires otherwise,
     (1) “active member” means a member who is employed by an employer, is receiving compensation on a full-time or part-time basis and is making contributions to the plan, or a member making contributions under AS 14.20.330 or 14.20.345;

     (2) “actuarial adjustment” means the adjustment necessary to obtain equality in value of the aggregate expected payments under two different forms of pension payments, considering expected mortality and interest earnings on the basis of assumptions, factors, and methods specified in regulations issued under the plan that are formally adopted by the board and that clearly preclude employer discretion in the determination of the amount of any member’s benefit;

     (3) “administrator” means the commissioner of administration or the commissioner’s designee under AS 14.25.003;

     (4) “annuitant” means a retired member or a disabled member who is receiving a benefit under this plan;

     (5) “average base salary” means the result obtained by dividing the sum of the member’s three highest years’ base salary by three, or if a member does not have three years base salary, then by dividing the sum of all base salaries by the number of years of base salary; the base salary for a year in which credit is granted for disability totaling more than one-third of a year may not be used in the computation of the average base salary; the base salary in a school year for which the member receives compensation for less than two-thirds of a year may not be used in the computation of the average base salary; if compensation is received for more than two-thirds of a year, the full base salary for that school year shall be used in the computation of the average base salary;

     (6) “base salary”
          (A) means the total remuneration payable under contract for a full year of membership service, including addenda to the contract but, for a member first hired on or after July 1, 1996, does not include remuneration in excess of the limitations set out in 26 U.S.C. 401(a)(17);

          (B) has the same meaning as “compensation” under AS 39.35.680(9) when applied to a state legislator who elects membership under AS 14.25.040(b);

     (7) “beneficiary” means a person designated by a member to receive benefits that may be due from the plan upon the member’s death;

     (8) “BIA service” means service, including partial years, as a teacher, a certificated person employed in a full-time position requiring a teaching certificate as a condition of employment, or a Bureau of Indian Affairs professional educator in a school or school system contracted or operated by the Bureau of Indian Affairs in Alaska;

     (9) “board” means the Alaska Retirement Management Board established under AS 37.10.210;

     (10) “compensation” means the total remuneration paid under contract to a member for services rendered during a school year, including cost-of-living differentials, payments for leave that is actually used by the member, the amount by which the member’s wages are reduced under AS 39.30.150(c), an amount that is contributed by the employer under a salary reduction agreement and that is not includable in the gross income of the employee under 26 U.S.C. 125 or 132(f)(4), and the amount deferred under an employer-sponsored deferred compensation plan or the tax shelter annuity plan approved by the Department of Education and Early Development, but does not include retirement benefits, welfare benefits, per diem, expense allowances, workers’ compensation payments, or payments for leave not used by the member, whether those leave payments are scheduled payments, lump-sum payments, donations, or cash-ins; for purposes of AS 14.25.050, compensation paid includes any payment made after June 30 of a school year for services rendered before the end of the school year;

     (11) “credited service” means
          (A) all membership service as defined in this section, territorial employment as defined in this section, plus outside, military, and Alaska BIA service, with outside and military service limited to 10 years except under the conditions set out in AS 14.25.100;

          (B) for purposes of eligibility for benefits under AS 14.25.009 — 14.25.220, service for which no indebtedness is owed;

     (12) “deferred vested member” means an inactive member who meets the service requirements of a vested member;

     (13) “dependent child” means an unmarried child of a member, including an adopted child, who is dependent upon the member for support and who is either (A) less than 19 years old, or (B) less than 23 years old and registered at and attending on a full-time basis an accredited educational or technical institution recognized by the Department of Education and Early Development; the age limits set out in this paragraph do not apply to a child who is totally and permanently disabled;

     (14) “disabled member” means a member who is terminated, who has not received a refund from the plan, and who is receiving a disability benefit from the plan;

     (15) “early retirement” means retirement under AS 14.25.110(b);

     (16) “employer” means a public school district, the Board of Regents of the University of Alaska, the Department of Education and Early Development, the Regional Resource Centers, or the state legislature with respect to a state legislator who elects membership under AS 14.25.040(b);

     (17) “fiscal year” means the period beginning on July 1 and ending on June 30 of the following calendar year;

     (18) “former member” means a member who is terminated and who received a total refund of the balance of the mandatory contribution account, or who has requested in writing a refund of the balance of the mandatory contribution account;

     (19) “full-time teacher” means a teacher occupying a position requiring teaching on a regular basis for the normal work period per day or week at a teaching assignment, excluding teaching as an assistant or graduate assistant or teaching on a substitute, temporary, or per diem basis;

     (20) “inactive teacher or member” means a member who is terminated and who has not received a refund from the plan or a member who is on leave of absence and who is not making contributions under AS 14.20.345;

     (21) “Internal Revenue Code” means the Internal Revenue Code of 1986, as amended;

     (22) “member contribution account” means the total maintained by the plan of the member’s mandatory contributions, indebtedness principal and interest payments, interest credited to each of those accounts, and adjustments to the account in accordance with AS 14.25.173;

     (23) “membership service” means
          (A) full or part-time service as a teacher in a public school in the Territory or State of Alaska, or both, under the supervision and control of the Territorial Board of Education or the Department of Education and Early Development or the school board of a city, regional educational attendance area, or borough school district;

          (B) full-time or part-time teaching at the University of Alaska or a full-time administrative position at the University of Alaska that requires academic standing and that has been approved for inclusion in the plan by the administrator;

          (C) any period during which the teacher receives a disability benefit under this plan or is on an approved sabbatical leave granted in accordance with AS 14.20.310;

          (D) continuous service as a state legislator when performed by a state legislator who elects membership under AS 14.25.040(b), subject to the requirements of AS 14.25.040(c);

          (E) full-time or part-time service as an employee of the Special Education Service Agency, subject to the requirements of AS 14.25.047; or

          (F) full-time or part-time service as an Alaska Native language or culture expert, subject to the requirements of AS 14.25.048;

     (24) “military service” means active duty in the armed forces of the United States;

     (25) “nonpublic school” means a school established by an agency other than a state that is primarily supported by other than public funds, and operation of whose program rests with other than publicly elected or appointed officials, and is state approved or accredited;

     (26) “non-vested member” means an active or inactive member who does not meet the requirements of a vested member or deferred vested member;

     (27) “normal retirement” means retirement under AS 14.25.110(a);

     (28) “outside service” means service for full years as defined by 47(A)(x) and 47(B)(xi) of this section
          (A) as a certificated full-time elementary or secondary teacher or a certificated person in a full-time position requiring a teaching certificate as a condition of employment in an out-of-state public school within the United States, or in a school outside the United States supported by funds of the United States;

          (B) as a certificated full-time elementary or secondary teacher or a certificated person in a full-time position requiring a teaching certificate as a condition of employment in an approved or accredited nonpublic school within the United States, or in a school outside the United States supported by funds of the United States;

          (C) in a full-time position requiring academic standing in an out-of-state institution of higher learning accredited by a nationally recognized accrediting agency as listed in the Education Directory — Colleges and Universities by the National Center for Education Statistics;

          (D) as a full-time teacher in an approved or accredited nonpublic institution of higher learning in Alaska;

     (29) “part-time teacher” means a teacher occupying a position requiring teaching on a regular basis for at least 50 percent of the normal workweek at a teaching assignment, excluding teaching as an assistant or graduate assistant, or teaching on a substitute, temporary, or per diem basis;

     (30) “past service liability” means the actuarially determined excess of the accrued liability of the plan over the value of the plan’s assets, as of the date of the last actuarial valuation;

     (31) “permanent disability” means a physical or mental condition that, in the judgment of the administrator, based upon medical reports and other evidence satisfactory to the administrator, presumably prevents a member from satisfactorily performing the member’s usual duties for the member’s employer or the duties of another position or job that an employer makes available for which the member is qualified by training or education;

     (32) “plan” means the retirement benefit plan established under AS 14.25.009 — 14.25.220;

     (33) “prescribed rate of interest” means the rate of interest used for computing employer contributions, for preparing actuarial tables used by the plan, for crediting interest to members’ contributions, and for charging interest on members’ indebtedness accounts;

     (34) “public school” means a school operated by publicly elected or appointed school officials in which the program and activities are under the control of those officials and that is supported by public funds;

     (35) “qualified domestic relations order” means a divorce or dissolution judgment under AS 25.24, including an order approving a property settlement, that
          (A) creates or recognizes the existence of an alternate payee’s right to, or assigns to an alternate payee the right to, receive all or a portion of the member contribution account or benefits payable with respect to a member;

          (B) sets out the name and last known mailing address, if any, of the member and of each alternate payee covered by the order;

          (C) sets out the amount or percentage of the member’s benefit, or of any survivor’s benefit, to be paid to the alternate payee, or sets out the manner in which that amount or percentage is to be determined;

          (D) sets out the number of payments or period to which the order applies;

          (E) sets out the plan to which the order applies;

          (F) does not require any type or form of benefit or any option not otherwise provided by AS 14.25.009 — 14.25.220;

          (G) does not require an increase of benefits in excess of the amount provided by AS 14.25.009 — 14.25.220, determined on the basis of actuarial value; and

          (H) does not require the payment, to an alternate payee, of benefits that are required to be paid to another alternate payee under another order previously determined to be a qualified domestic relations order;

     (36) “retired teacher or member” means a member who is terminated, who has not received a refund from the plan, and who is receiving a benefit, other than disability, from the plan;

     (37) “retirement” means that period of time from the first day of the month following
          (A) the date of termination; and

          (B) application for retirement in which a person is appointed to receive a retirement benefit, other than a disability benefit;

     (38) “retirement benefit” means the annuity received by a retired member from the plan;

     (39) “retirement fund” or “fund” means the fund in which the assets of the plan, including income and interest derived from the investment of money, are deposited and held;

     (40) “Retirement System of 1945” and “Retirement Fund of 1945” or like terms mean the system and fund established in sections 37-5-21 — 37-5-35, ACLA 1949;

     (41) “school year” means the 12-month period beginning July 1 of each year and ending June 30 of the following year;

     (42) “supplemental contribution account” means the account maintained by the plan to record the supplemental contributions of each member, including interest and adjustments to the account;

     (43) “system” means all retirement plans established under the teachers’ retirement system;

     (44) “teacher” and “member” are used interchangeably under AS 14.25.009 — 14.25.220 and mean a person eligible to participate in the plan and who is covered by the plan, limited to
          (A) a certificated full-time or part-time elementary or secondary teacher, a certificated school nurse, or a certificated person in a position requiring a teaching certificate as a condition of employment in a public school of the state, the Department of Education and Early Development, or the Department of Labor and Workforce Development;

          (B) a full-time or part-time teacher of the University of Alaska or a person occupying a full-time administrative position at the University of Alaska that requires academic standing; the approval of the administrator must be obtained before an administrative position qualifies for membership in the plan; however, a teacher or administrative person at the university who is participating in a university retirement program under AS 14.40.661 — 14.40.799 is not a member under this plan;

          (C) a state legislator who elects membership under AS 14.25.040(b);

     (45) “territorial employment” means non-teaching employment with the Territory of Alaska as provided under AS 14.25.105; territorial employment is not membership service;

     (46) “vested member” or “vested teacher” means an active member who has completed either
          (A) 15 years of service, the last five of which have been membership service, for a member first hired before July 1, 1975;

          (B) eight years of membership service;

          (C) five years of membership and three years of BIA service; or

          (D) 12 school years of part-time membership service or 12 school years in each of which the member earned either part-time or full-time membership service;

     (47) “year of service” means service, except for military and territorial service, during the dates set for a school year; partial-year service credit is given for membership and BIA service as follows:
          (A) before July 1, 1969, during any school year,
               (i) less than 20 days, no credit;

               (ii) 20 days or more but less than 35 days, 0.2 years;

               (iii) 35 days or more but less than 49 days, 0.3 years;

               (iv) 49 days or more but less than 63 days, 0.4 years;

               (v) 63 days or more but less than 77 days, 0.5 years;

               (vi) 77 days or more but less than 91 days, 0.6 years;

               (vii) 91 days or more but less than 105 days, 0.7 years;

               (viii) 105 days or more but less than 119 days, 0.8 years;

               (ix) 119 days or more but less than 133 days, 0.9 years;

               (x) 133 days or more, 1.0 years;

          (B) on or after July 1, 1969, during any school year,
               (i) less than nine days, no credit;

               (ii) nine days or more but less than 27 days, 0.1 years;

               (iii) 27 days or more but less than 45 days, 0.2 years;

               (iv) 45 days or more but less than 63 days, 0.3 years;

               (v) 63 days or more but less than 81 days, 0.4 years;

               (vi) 81 days or more but less than 100 days, 0.5 years;

               (vii) 100 days or more but less than 118 days, 0.6 years;

               (viii) 118 days or more but less than 136 days, 0.7 years;

               (ix) 136 days or more but less than 154 days, 0.8 years;

               (x) 154 days or more but less than 172 days, 0.9 years;

               (xi) 172 days or more, 1.0 years;

          (C) service performed on a part-time basis will be credited in proportion to the amount of credit that would have been received for service performed on a full-time basis.




Article 3. Teachers First Hired on or after July 1, 2006.


Sec. 14.25.310. Applicability of AS 14.25.310 — 14.25.590.
The provisions of AS 14.25.310 — 14.25.590 apply only to teachers who first become members on or after July 1, 2006, to members who are employed by employers that do not participate in the defined benefit retirement plan established under AS 14.25.009 — 14.25.220, to former members under AS 14.25.220, or to members who transfer into the defined contribution retirement plan under AS 14.25.540.


Sec. 14.25.320. Defined contribution retirement plan established.
 (a) A defined contribution retirement plan for teachers of the state is created.

 (b) The defined contribution retirement plan includes a plan in which savings are accumulated in an individual account for the exclusive benefit of the member or beneficiaries. The plan is established effective July 1, 2006, at which time contributions by employers and members begin.

 (c) The defined contribution retirement plan is intended to qualify under 26 U.S.C. 401(a), 414(d), and 414(k) (Internal Revenue Code) as a qualified retirement plan established and maintained by the state for its employees and for the employees of school districts and regional educational attendance areas in the state. Benefits under AS 14.25.480 are not provided by the defined contribution retirement plan.

 (d) An amendment to the defined contribution retirement plan does not provide a person with a vested right to a benefit if the Internal Revenue Service determines that the amendment will result in disqualification of the plan under the Internal Revenue Code.




Sec. 14.25.330. Membership.
 (a) A teacher who first becomes a member on or after July 1, 2006, shall participate in the plan as a member of the defined contribution retirement plan.

 (b) A teacher who is participating in a university retirement program under AS 14.40.661 — 14.40.799 may not participate as a member of the defined contribution retirement plan.




Sec. 14.25.340. Contributions by members.
 (a) Each member shall contribute to the member’s individual account an amount equal to eight percent of the member’s compensation from July 1 to the following June 30.

 (b) [Repealed, § 116 ch 20 SLA 2007.]
 (c) The employer shall deduct the contribution from the member’s compensation at the end of each payroll period, and the contribution shall be credited by the administrator to the member’s individual account. The contributions shall be deducted from the member’s compensation before the computation of applicable federal taxes and shall be treated as employer contributions under 26 U.S.C. 414(h)(2). A member may not have the option of making the payroll deduction directly in cash instead of having the contribution picked up by the employer.




Sec. 14.25.345. Employment contributions mandatory.
 (a) Contributions of members shall be made by payroll deductions. Each member shall be considered to consent to payroll deductions. It is of no consequence that a payroll deduction may cause the compensation paid in cash to a member to be reduced below the minimum required by law.

 (b) Payment of a member’s compensation, less payroll deductions, is a full and complete discharge and satisfaction of all claims and demands by the member relating to remuneration of services during the period covered by the payment, except with respect to the benefits provided under the plan.




Sec. 14.25.350. Contributions by employers.
 (a) An employer shall contribute to each member’s individual account an amount equal to seven percent of the member’s compensation from July 1 to the following June 30.

 (b) An employer shall also contribute an amount equal to a percentage, as approved by the board, of each member’s compensation from July 1 to the following June 30 to pay for retiree major medical insurance. This contribution shall be paid into the Alaska retiree health care trust established by the commissioner of administration under AS 39.30.097(b) and shall be accounted for in accordance with regulations adopted by the commissioner.

 (c) Notwithstanding (b) of this section, the employer contribution for retiree major medical insurance for fiscal year 2007 shall be 1.75 percent of each member’s compensation from July 1 to the following June 30.

 (d) An employer shall also make contributions to the health reimbursement arrangement plan under AS 39.30.370.

 (e) An employer shall make annual contributions to a trust account in the plan, applied as a percentage of each member’s compensation from July 1 to the following June 30, in an amount determined by the board to be actuarially required to fully fund the cost of providing occupational disability and occupational death benefits under AS 14.25.310 — 14.25.590.




Sec. 14.25.360. Rollover contributions and distributions.
 (a) A teacher entering the plan may elect, at the time and in the manner prescribed by the administrator, to have all or part of a direct rollover distribution from an eligible retirement plan owned by the member paid directly into the member’s individual account.

 (b) Rollover contributions do not count as a purchase of membership service for the purpose of determining years of service.

 (c) A distributee may elect, at the time and in the manner prescribed by the administrator, to have all or part of a direct rollover distribution paid directly to an eligible retirement plan specified by the distributee in the direct rollover.

 (d) In this section,
     (1) “direct rollover” means the payment of an eligible rollover distribution by the plan to an eligible retirement plan specified by a distributee who is eligible to elect a direct rollover;

     (2) “distributee” means a member, or a beneficiary who is the surviving spouse of the member, or an alternate payee;

     (3) “eligible retirement plan” means
          (A) an individual retirement account described in 26 U.S.C. 408(d)(3)(A);

          (B) an annuity plan described in 26 U.S.C. 403(a);

          (C) a qualified trust described in 26 U.S.C. 401(a);

          (D) an annuity plan described in 26 U.S.C. 403(b);

          (E) a governmental plan described in 26 U.S.C. 457(b);

          (F) an individual retirement annuity described in 26 U.S.C. 408(b); or

          (G) on or after January 1, 2008, a Roth IRA described in 26 U.S.C. 408A;

     (4) “eligible rollover distribution” means a distribution of all or part of a total account to a distributee, except for
          (A) a distribution that is one of a series of substantially equal installments payable not less frequently than annually over the life expectancy of the distributee or the joint and last survivor life expectancy of the distributee and the distributee’s designated beneficiary, as defined in 26 U.S.C. 401(a)(9);

          (B) a distribution that is one of a series of substantially equal installments payable not less frequently than annually over a specified period of 10 years or more;

          (C) a distribution that is required under 26 U.S.C. 401(a)(9);

          (D) the portion of any distribution that is not includable in gross income; however, a portion under this subparagraph may be transferred only to an individual retirement account or annuity described in 26 U.S.C. 408(a) or (b), to a qualified plan described in 26 U.S.C. 401(a) or 403(a), or to an annuity contract described in 26 U.S.C. 403(b), that agrees to separately account for amounts transferred, including separately accounting for the portion of the distribution that is includable in gross income and the portion of the distribution that is not includable in gross income; and

          (E) other distributions that are reasonably expected to total less than $200 during a year.




Sec. 14.25.370. Transmittal of contributions; claims against funds of an employer; use of contributions.
 (a) All contributions deducted in accordance with AS 14.25.310 — 14.25.590 shall be transmitted to the plan for deposit in the appropriate account or trusts as soon as administratively feasible, but in no event later than 15 days following the close of the payroll period, with the final contributions due for any school year transmitted no later than July 15.

 (b) If contributions are not transmitted within the prescribed time limit, interest shall be assessed on the outstanding contributions at the rate established under AS 14.25.065 from the date that contributions were originally due. Amounts due from an employer and interest as prescribed in this subsection may be claimed by the administrator from any agency of the state or political subdivision that has in its possession funds of the employer or that is authorized to disburse funds to the employer that are not restricted by statute or appropriation to a specific purpose. The amount claimed shall be certified by the administrator as sufficient to pay the contributions and interest due from the employer. The amount claimed shall be submitted to the administrator for deposit in the appropriate account or trusts.

 (c) An employer is responsible for administrative fees, investment fees, and investment losses charged to accounts established under AS 14.25.340 resulting from contribution adjustments because the employer enrolled a member in the plan before the member was eligible for membership. Contributions made by an employee shall be returned to the employer by reducing future employee contributions due. Contributions, net of fees and investment losses, made by an employer shall be used to reduce future employer contributions due.




Sec. 14.25.380. Limitations on contributions and benefits.
Notwithstanding any other provisions of this plan, the annual additions to each member’s individual account under this plan and under all defined contribution plans of the employer required to be aggregated with the contributions from this plan under the provisions of 26 U.S.C. 415 may not exceed, for any limitation year, the amount permitted under 26 U.S.C. 415(c) at any time. If the amount of a member’s individual account contributions exceeds the limitation of 26 U.S.C. 415(c) for any limitation year, the administrator shall take any necessary remedial action to correct an excess contribution. A fixed benefit provided under this plan may not exceed, for or during a limitation year, the amount permitted under 26 U.S.C. 415(b). If a fixed benefit provided under this plan exceeds, for or during a limitation year, the amount permitted under 26 U.S.C. 415(b), the administrator shall take remedial action necessary to comply with the limits on the benefit amount in 26 U.S.C. 415(b). The provisions of 26 U.S.C. 415, and the regulations adopted under that statute, as applied to qualified plans of governmental employers are incorporated as part of the terms and conditions of the plan.


Sec. 14.25.390. Vesting.
 (a) A participating member is immediately and fully vested in that member’s contributions and related earnings.

 (b) A member is fully vested in the employer contributions made on that member’s behalf, and related earnings, after five years of service. A member is partially vested in the employer contributions made on that member’s behalf, and the related earnings, in the ratio of
     (1) 25 percent with two years of service;

     (2) 50 percent with three years of service; and

     (3) 75 percent with four years of service.




Sec. 14.25.400. Investment of individual accounts.
 (a) The board shall provide a range of investment options and permit a participant to exercise investment control over the participant’s assets in the member’s individual account as provided in this section. If a participant exercises control over the assets in the individual account, the participant is not considered a fiduciary for any reason on the basis of exercising that control.

 (b) A participant may direct investment of plan funds held in an account among available investment funds in accordance with rules established by the board.

 (c) A participant may elect to change or transfer all or a portion of the participant’s existing account balance among available investment funds not more often than once each day in accordance with the rules established by the administrator. Only the last election received by the administrator before the transmittal of contributions to the trust fund for allocation to the individual account will be used to direct the investment of the contributions received.

 (d) Except to the extent clearly set out in the terms of the investment plans offered by the employer to the employee, the employer is not liable to the participant for investment losses if the prudent investment standard has been met.

 (e) The employer, administrator, state, board, or a person or entity who is otherwise a fiduciary is not liable by reason for any participant’s investment loss that results from the participant’s directing the investment of plan assets allocated to the participant’s account.

 (f) To the extent that a member’s individual account has been divided as provided in a qualified domestic relations order between participants, each participant shall be treated as the holder of a separate individual account for purposes of investment yields, decisions, transfers, and time limitations imposed by this section.




Sec. 14.25.410. Distribution election at termination.
 (a) A member is eligible to elect distribution of the member’s account in accordance with this section 60 days after termination of employment.

 (b) Notwithstanding (a) of this section, distribution of all or a portion of the individual account of a member may take place before the 60th day after the termination of employment with the approval of the administrator if the member makes a written request for a distribution under this subsection. The member’s spouse must consent to the request in writing if the member is married. Distribution of an individual account may only be made on account of an immediate and heavy financial need of the member for the following reasons and in the amount the need is demonstrated for
     (1) medical care described in 26 U.S.C. 213(d) incurred by the member, the member’s spouse, or the member’s dependent, or necessary to obtain that medical care;

     (2) the purchase of a principal residence for the member;

     (3) postsecondary education tuition and related educational fees for the next 12-month period for the member, the member’s spouse, or a dependent of the member; in this paragraph, “dependent” has the meaning given in 26 U.S.C. 152;

     (4) prevention of the eviction of the member from the member’s principal residence or foreclosure on the mortgage of the member’s principal residence; or

     (5) any need prescribed by the United States Department of the Treasury, Internal Revenue Service, in a revenue ruling, notice, or other document of general applicability that satisfies the safe harbor definition of hardship under regulations adopted under 26 U.S.C. 401(k).

 (c) If a member dies before benefits commence, the member’s beneficiary is immediately eligible to elect distribution of the member’s share of the member’s individual account.

 (d) Distributions are payable to an alternate payee in accordance with the terms and conditions of a qualified domestic relations order that is received and approved by the administrator as specified in AS 14.25.460.

 (e) Distributions that are being paid to a member may not be affected by the member’s subsequent reemployment with the employer. Upon reemployment, a new individual account shall be established for the member to which any future contributions shall be allocated. Upon subsequent termination of employment, the member’s new individual account shall be distributed in accordance with this section.




Sec. 14.25.420. Forms of distribution.
 (a) A participant may elect to receive distribution of the participant’s share of the individual account in a
     (1) lump sum payment, which is a single payment of the entire balance in the account;

     (2) periodic lump sum payment, which is a payment of a portion of the balance in the account, not more than twice each year;

     (3) period certain annuity payment, which is an annuity payable in a fixed number of monthly installments for a duration of 60, 120, or 180 months;

     (4) life annuity with a period certain payment, which is an annuity payable until the later of the first day of the month in which the annuitant’s death occurs, or the date on which the payment of a fixed number of monthly installments is completed; the period certain for installments is 120 or 180 months;

     (5) single life annuity payment, which is an annuity payable monthly until the first of the month in which the annuitant’s death occurs; or

     (6) joint and survivor annuity payment, which is an annuity payable monthly to the member until the first of the month in which the member’s death occurs; after the member’s death, a survivor annuity equal to 50 percent or 100 percent of the member’s benefit, as previously elected by the member, shall be paid monthly to the joint annuitant for the remainder of the survivor’s lifetime.

 (b) Upon the death of an annuitant whose payments have commenced, an annuitant’s beneficiary shall receive further payments only to the extent provided in accordance with the form of payment that was being made to the annuitant. The remaining portion of the interest shall continue to be distributed at least as rapidly as under the method of distribution being used before the annuitant’s death.

 (c) If a participant dies before the distribution commencement date, distribution of the participant’s entire interest to a beneficiary shall be payable in any form other than a joint and survivor annuity.

 (d) If an unmarried member or other participant fails to elect a form of payment before the distribution commencement date, the account shall be paid to a beneficiary in the form of a lump sum to the extent required by the minimum distribution requirements set out in the Internal Revenue Code. If a married member fails to elect a form of payment before the distribution commencement date, the account shall be paid in the form of a 50 percent joint and survivor annuity, with the member’s spouse as the joint annuitant.




Sec. 14.25.430. Manner of electing distributions.
 (a) Any election or any alteration or revocation of a prior election by a participant for any purpose under this plan shall be on forms or made in a manner prescribed for that purpose by the plan administrator. To be effective, the forms required or the required action for any purpose under this plan must be completed and received in accordance with regulations adopted by the commissioner of administration.

 (b) At any time, but not less than seven days before the distribution commencement date, a member, alternate payee, or beneficiary may change
     (1) the form of payment election;

     (2) an election to commence benefits; or

     (3) the joint annuitant designation.

 (c) Changes in elections are not allowed on or after seven days before the distribution commencement date.




Sec. 14.25.440. Distribution requirements.
 (a) Payments to a participant shall commence as soon as administratively feasible following the distribution commencement date. The distribution commencement date is the first date on which one of the following occurs:
     (1) a member meets the requirements of AS 14.25.410 and has made a complete application for payment under AS 14.25.430;

     (2) a participant has elected to defer receipt of the account to a date specified, the date has been attained, and the participant has made a complete application for payment;

     (3) a member attains normal retirement age and has not made an application for payment or elected to defer receipt of the account to a date later than normal retirement age;

     (4) a member’s beneficiary does not make an application for benefits, and five years have elapsed since the member’s death;

     (5) notwithstanding (1) — (4) of this subsection, a participant whose account has a balance of $1,000 or less meets the requirements of AS 14.25.410, at which time the participant must take payment of the participant’s account.

 (b) The entire interest of a participant must be distributed or must begin to be distributed not later than the member’s required beginning date.

 (c) If a member dies after the distribution of the member’s interest has begun but before the distribution has been completed, the remaining portion of the interest shall continue to be distributed at least as rapidly as under the method of distribution being used before the member’s death.

 (d) If a member has made a distribution election and dies before the distribution of the member’s interest begins, distribution of the member’s entire interest shall be completed by December 31 of the calendar year containing the fifth anniversary of the member’s death. However, if any portion of the member’s interest is payable to a designated beneficiary, distributions may be made over the life of the designated beneficiary or over a period certain not greater than the life expectancy of the designated beneficiary, commencing on or before December 31 of the calendar year immediately following the calendar year in which the member died, and, if the designated beneficiary is the member’s surviving spouse, the date distributions are required to begin may not be earlier than the later of December 31 of the calendar year (1) immediately following the calendar year in which the member died, or (2) in which the member would have attained 70 1/2 years of age, whichever is earlier. If the surviving spouse dies after the member but before payments to the spouse have begun, the provisions of this subsection apply as if the surviving spouse were the member. An amount paid to a child of the member shall be treated as if it were paid to the surviving spouse if the amount becomes payable to the surviving spouse when the child reaches the age of majority.

 (e) If a member has not made a distribution election before the member’s death, the member’s designated beneficiary must elect the method of distribution not later than December 31 of the calendar year (1) in which distributions would be required to begin under this section, or (2) that contains the fifth anniversary of the date of death of the member, whichever is earlier. If the member does not have a designated beneficiary or if the designated beneficiary does not elect a method of distribution, distribution of the member’s entire interest must be completed by December 31 of the calendar year containing the fifth anniversary of the member’s death.

 (f) For purposes of (b) of this section, distribution of a member’s interest is considered to begin (1) on the member’s required beginning date, or (2) if the designated beneficiary is the member’s surviving spouse and the surviving spouse dies after the member but before payments to the spouse have begun, on the date distribution is required to begin to the surviving spouse. If distribution in the form of an annuity irrevocably commences to the member before the required beginning date, the date distribution is considered to begin is the date that the distribution actually commences.

 (g) Notwithstanding any contrary provisions of AS 14.25.310 — 14.25.590, the requirements of this section apply to all distributions of a member’s interest and take precedence over any inconsistent provisions of AS 14.25.310 — 14.25.590.

 (h) All distributions required under this section are determined and made in accordance with 26 U.S.C. 401(a)(9) and regulations adopted under that statute, including any minimum distribution incidental benefit requirement.

 (i) In this section,
     (1) “designated beneficiary” means the individual who is designated as the beneficiary under the plan in accordance with 26 U.S.C. 401(a)(9) and regulations adopted under that statute;

     (2) “required beginning date” means the first day of April of the calendar year following the calendar year in which the member either attains 70 1/2 years of age or actually terminates employment, whichever is later.




Sec. 14.25.450. Designation of beneficiary.
 (a) Each participant shall have the right to designate a beneficiary and shall have the right, at any time, to revoke the designation or to substitute another beneficiary, subject to the following limitation: if a married member elects a nonspouse beneficiary, the value of the benefit payable to the beneficiary may not exceed 50 percent of the member’s portion of the account balance, and the member’s spouse shall automatically be considered the beneficiary for the remaining 50 percent of the account balance, unless the spouse consents to the beneficiary designation in a writing that is notarized or witnessed by the administrator. If the spouse consents in this manner, a married member may designate a nonspouse beneficiary for the entire benefit or any portion of the benefit as part of an available form of payment contained in this plan,
     (1) except to the extent a qualified domestic relations order filed with the administrator provides for payment to a former spouse or other dependent of the member; or

     (2) unless the member filed a revocation of beneficiary accompanied by a written consent to the revocation from the present spouse and each person entitled under the order; however, consent of the present spouse is not required if the member and the present spouse had been married for less than one year on the date of the member’s death and if the member established when filing the revocation that the member and the present spouse were not cohabiting.

 (b) Except as provided in (a) of this section, the member may change or revoke the designation without notice to the beneficiary or beneficiaries at any time. If a member designates more than one beneficiary, each shares equally unless the member specifies a different allocation or preference. The designation of a beneficiary, a change or revocation of a beneficiary, and a consent to revocation of a beneficiary shall be made on a form provided by the administrator and is not effective until filed with the administrator.

 (c) If a member fails to designate a beneficiary, or if no designated beneficiary survives the member, the death benefit shall be paid
     (1) to the surviving spouse or, if there is none surviving;

     (2) to the surviving children of the member in equal parts or, if there are none surviving;

     (3) to the surviving parents in equal parts or, if there are none surviving;

     (4) to the estate.

 (d) A person claiming entitlement to benefits payable under AS 14.25.310 — 14.25.590 as a consequence of a member’s death shall provide the administrator with a marriage certificate, divorce or dissolution judgment, or other evidence of entitlement. Documents establishing entitlement may be filed with the administrator immediately after a change in the member’s marital status. If the administrator does not receive notification of a claim before the date 10 days after the member’s death, the person claiming entitlement is not entitled to receive from the division of retirement and benefits any benefit already paid by the administrator.




Sec. 14.25.460. Rights under qualified domestic relations order.
 (a) Notwithstanding the nonalienation provisions in AS 14.25.500(a), the administrator may direct that benefits be paid to someone other than a member or beneficiary under a valid qualified domestic relations order that is executed by the judge of a competent court in accordance with applicable state law and that has been accepted by the administrator.

 (b) The administrator shall determine whether an order meets the requirements of this section within a reasonable period after receiving an order. The administrator shall notify the member and any alternate payee that an order has been received and indicate to the member and any alternate payee when the order is accepted. A separate account for the alternate payee portion shall be established as soon as administratively feasible after the order has been accepted by the administrator.




Sec. 14.25.470. Eligibility for retirement and medical benefits.
 (a) In order to obtain medical benefits under AS 14.25.480, a member must retire directly from the plan. A member is eligible to retire from the plan if the member has been an active member for at least 12 months before application for retirement and
     (1) the member has at least 30 years of service; or

     (2) the member reaches the normal retirement age and has at least 10 years of service.

 (b) The normal retirement age is the age set for Medicare eligibility at the time the member retires.

 (c) A member’s surviving spouse is eligible to elect medical benefits under AS 14.25.480 if the member had retired, or was eligible for retirement and medical benefits at the time of the member’s death.

 (d) A member shall apply for retirement and medical benefits on the forms and in the manner prescribed by the administrator.

 (e) Participation in the retiree major medical insurance plan is not required in order to participate in the health reimbursement arrangement.

 (f) A person eligible for retirement and medical benefits is not required to participate in the health reimbursement arrangement in order to elect participation in the retiree major medical insurance plan.

 (g) An eligible person shall make the irrevocable election to participate or not participate in the retiree major medical insurance plan by reaching 70 1/2 years of age, or upon application for retirement and medical benefits, whichever is later.




Sec. 14.25.480. Medical benefits.
 (a) The medical benefits available to eligible persons are access to the retiree major medical insurance plan and to the health reimbursement arrangement under AS 39.30.300. Access to the retiree major medical insurance plan means that an eligible person may not be denied insurance coverage except for failure to pay the required premium.

 (b) Retiree major medical insurance plan coverage elected by an eligible member under this section covers the eligible member, the spouse of the eligible member, and the dependent children of the eligible member.

 (c) Retiree major medical insurance plan coverage elected by a surviving spouse of an eligible member under this section covers the surviving spouse and the dependent children of the eligible member who are dependent on the surviving spouse.

 (d) Major medical insurance coverage takes effect on the first day of the month following the date of the administrator’s approval of the election and stops when the person who elects coverage dies or fails to make a required premium payment.

 (e) The coverage for persons 65 years of age or older is the same as that available for persons under 65 years of age. The benefits payable to those persons 65 years of age or older supplement any benefits provided under the federal old age, survivors and disability insurance program.

 (f) The medical and optional insurance premiums owed by the person who elects coverage may be deducted from the health reimbursement arrangement. If the amount of the health reimbursement arrangement becomes insufficient to pay the premiums, the person who elects coverage under (a) of this section shall pay the premiums directly.

 (g) The cost of premiums for retiree major medical insurance coverage for an eligible member or surviving spouse who is
     (1) not eligible for Medicare is an amount equal to the full monthly group premiums for retiree major medical insurance coverage;

     (2) eligible for Medicare is the following percentage of the premium amounts established for retirees who are eligible for Medicare:
          (A) 30 percent if the member had 10 or more, but less than 15, years of service;

          (B) 25 percent if the member had 15 or more, but less than 20, years of service;

          (C) 20 percent if the member had 20 or more, but less than 25, years of service;

          (D) 15 percent if the member had 25 or more, but less than 30, years of service;

          (E) 10 percent if the member had 30 or more years of service.

 (h) The eligibility for retiree major medical insurance coverage for an alternate payee under a qualified domestic relations order shall be determined based on the eligibility of the member to elect coverage. The alternate payee shall pay the full monthly premium for retiree major medical insurance coverage.

 (i) A person who is entitled to retiree major medical insurance coverage shall
     (1) be informed by the administrator in writing
          (A) that the health insurance coverage available to retired members may be different from the health insurance coverage provided to employees;

          (B) of time limits for selecting optional health insurance coverage and whether the election is irrevocable; and

     (2) indicate in writing on a form provided by the administrator that the person has received the information required by this subsection and whether the person has chosen to receive optional health insurance coverage.

 (j) The monthly group premiums for retiree major medical insurance coverage are established by the administrator in accordance with AS 39.30.095. Nothing in AS 14.25.310 — 14.25.590 guarantees a person who elects coverage under (a) of this section a monthly group premium rate for retiree major medical insurance coverage other than the premium in effect for the month in which the premium is due for coverage for that month.

 (k) In this section, “health reimbursement arrangement” means the plan established in AS 39.30.300.




Sec. 14.25.485. Occupational disability benefits and reemployment of disabled members.
 (a) A member is eligible for an occupational disability benefit if employment is terminated because of a total and apparently permanent occupational disability before the member’s normal retirement date.

 (b) The occupational disability benefits accrue beginning the first day of the month following termination of employment as a result of the disability and are payable the last day of the month. If a final determination granting the benefit is not made in time to pay the benefit when due, a retroactive payment shall be made to cover the period of deferment. The last payment shall be for the first month in which the disabled member
     (1) dies;

     (2) recovers from the disability;

     (3) fails to meet the requirements under (f), (h), or (k) of this section; or

     (4) reaches normal retirement age.

 (c) If the disabled member becomes ineligible to receive occupational disability benefits before the normal retirement date, the disabled member shall then be entitled to receive retirement benefits if the member would have been eligible for the benefit had employment continued during the period of disability. The period of disability constitutes membership service in regard to determining eligibility for retirement.

 (d) The monthly amount of an occupational disability benefit is 40 percent of the disabled member’s gross monthly compensation at the time of termination due to disability. Notwithstanding AS 14.25.390(b), at the time a member is appointed to disability, the member becomes fully vested in the employer contributions made under AS 14.25.350(a). A disabled member is fully vested in the contributions to the member’s individual account made under this subsection. A member is not entitled to elect distributions from the member’s individual contribution account under AS 14.25.410 while the member is receiving disability benefits under this section. While a member is receiving disability benefits, based on the disabled member’s gross monthly compensation at the time of termination due to disability, the employer shall make contributions to the
     (1) member’s individual account under AS 14.25.340 on behalf of the member, without deduction from the member’s disability payments; and

     (2) appropriate accounts and funds on behalf of the member under AS 14.25.350.

 (e) A member is not entitled to an occupational disability benefit unless the member files an application for an occupational disability benefit with the administrator within 90 days after the date of terminating employment. If the member is unable to meet a filing requirement of this subsection, the filing requirement may be waived by the administrator if there are extraordinary circumstances that resulted in the member’s inability to meet the filing requirement.

 (f) A disabled member receiving an occupational disability benefit shall undergo a medical examination as often as the administrator considers advisable, but not more frequently than once each year. The administrator shall determine the place of the examination and engage the physician or physicians. If, in the judgment of the administrator, the examination indicates that the disabled member is no longer incapacitated because of a total and apparently permanent occupational disability, the administrator may not issue further disability benefits to the member.

 (g) A disabled member’s occupational disability benefit terminates the last day of the month in which the disabled member first qualifies for normal retirement. At that time, the member’s retirement benefit shall be determined under the provisions of AS 14.25.420 — 14.25.440, 14.25.470, and 14.25.480. A member whose occupational disability benefit terminates under this subsection shall be considered to have retired directly from the plan.

 (h) A member appointed to disability benefits shall apply to the division of vocational rehabilitation of the Department of Labor and Workforce Development within 30 days after the date disability benefits commence. The member shall be enrolled in a rehabilitation program if the member meets the eligibility requirements of the division of vocational rehabilitation. Unless the member demonstrates cause, benefits shall terminate at the end of the first month in which a disabled member
     (1) fails to report to the division of vocational rehabilitation;

     (2) is certified by the division of vocational rehabilitation as failing to cooperate in a vocational rehabilitation program;

     (3) fails to interview for a job; or

     (4) fails to accept a position offered.

 (i) Upon the death of a disabled member who is receiving or is entitled to receive an occupational disability benefit, the administrator shall pay the surviving spouse a surviving spouse’s pension, equal to 40 percent of the member’s monthly compensation at the time of termination of employment because of occupational disability. If there is no surviving spouse, the administrator shall pay the survivor’s pension in equal parts to the dependent children of the member. While the monthly survivor’s pension is being paid, the survivor is not entitled to elect distributions from the member’s individual contribution account under AS 14.25.410. The first payment of the surviving spouse’s pension or of a dependent child’s pension shall accrue from the first day of the month following the member’s death and is payable the last day of the month. The last payment shall be made the last day of the last month in which there is an eligible surviving spouse or dependent child, or the last day of the month in which the member would have first qualified for normal retirement if the member had survived, whichever day is sooner. A retirement benefit shall be determined under the provisions of AS 14.25.420 — 14.25.440, 14.25.470, and 14.25.480 based on the date the member would have first qualified for normal retirement if the member had survived. In addition to the payment of the member’s individual account, the surviving spouse or, if there is no surviving spouse, the surviving dependent children of the member, shall receive an additional benefit in an amount equal to the accumulated contributions that would have been made to the deceased member’s individual account under AS 14.25.340(a) and 14.25.350(a), based on the deceased member’s gross monthly compensation at the time of occupational disability, from the time of the member’s death to the date the member would have first qualified for normal retirement if the member had survived. Earnings shall be allocated to the additional benefit calculated under this subsection based on the actual rate of return, net of expenses, of the trust account established under AS 14.25.350(e) over the period that the contributions would have been made. This additional amount and allocated earnings shall be paid in the same manner as determined for the member’s individual account under AS 14.25.420 — 14.25.460 to the extent permitted by the Internal Revenue Service. For the purpose of determining eligibility of a survivor who is receiving a benefit under this subsection for medical benefits under AS 14.25.470 and 14.25.480, a member who died while receiving disability benefits shall be considered to have retired directly from the plan on the date the member would have first qualified for normal retirement if the member had survived. The period during which the member was eligible for a disability benefit and the period during which a survivor’s pension is paid to a survivor under this subsection each constitute membership service for the purposes of determining eligibility for medical benefits under AS 14.25.310 — 14.25.590 and AS 39.30.300 — 39.30.495.

 (j) While a survivor under (i) of this section is receiving a survivor’s pension, the employer of the deceased member shall make contributions with respect to the survivor based on the deceased member’s gross monthly compensation at the time of termination due to disability
     (1) that would have been paid to the member’s individual account under AS 14.25.340 and 14.25.350(a) to the trust account established under AS 14.25.350(e), without deduction from the survivor’s pension; and

     (2) to the appropriate accounts and funds under AS 14.25.350(b) — (e).

 (k) In this section, “occupational disability” means a physical or mental condition that the administrator determines presumably permanently prevents an employee from satisfactorily performing the employee’s usual duties or the duties of another comparable position or job available to the employee and for which the employee is qualified by training or education; however, the proximate cause of the condition must be a bodily injury sustained, or a hazard undergone, while in the performance and within the scope of the employee’s duties and not the proximate result of the wilful negligence of the employee.




Sec. 14.25.486. Disability benefit adjustment.
 (a) Once each year, the administrator shall increase disability benefits. The amount of the increase is a percentage of the current disability benefit equal to the lesser of 75 percent of the increase in the cost of living in the preceding calendar year or nine percent.

 (b) If a disabled member was not receiving a benefit during the entire preceding calendar year, the increase in the benefit under this section shall be adjusted by multiplying it by a fraction, the numerator of which is the number of months for which the benefit was received in the preceding calendar year and the denominator of which is 12.

 (c) An increase in benefit payments under this section is effective July 1 of each year and is based on the percentage increase in the Consumer Price Index for urban wage earners and clerical workers for Anchorage, Alaska, during the previous calendar year, as determined by the United States Department of Labor, Bureau of Labor Statistics.

 (d) Benefit adjustments under this section shall terminate the last day of the month following the date on which a disabled member is no longer receiving a disability benefit under AS 14.25.485.




Sec. 14.25.487. Occupational death benefit.
 (a) If (1) the death of a member occurs before the member’s retirement and before the member’s normal retirement date, (2) the proximate cause of death is a bodily injury sustained or a hazard undergone while in the performance and within the scope of the member’s duties, and (3) the injury or hazard is not the proximate result of wilful negligence of the member, a monthly survivor’s pension shall be paid to the surviving spouse. If there is no surviving spouse or if the spouse later dies, the monthly survivor’s pension shall be paid in equal parts to the dependent children of the member.

 (b) The first payment of the surviving spouse’s pension or of a dependent child’s pension shall be made for the month following the month in which the member dies. Payments shall cease on the last day of the month in which there is no longer an eligible spouse or eligible dependent child, or the last day of the month following the earliest date the member would have first qualified for normal retirement if the member had survived, whichever day is sooner.

 (c) The monthly survivor’s pension in (b) of this section for survivors of members is 40 percent of the member’s monthly compensation in the month in which the member dies. While the monthly survivor’s pension is being paid, the survivor is not entitled to elect distributions from the member’s individual contribution account under AS 14.25.410, except as required by AS 14.25.440. While the monthly survivor’s pension is being paid, the employer shall make contributions with respect to the member’s surviving spouse and member’s surviving dependent children based on the deceased member’s gross monthly compensation at the time of occupational death
     (1) that would have been paid to the member’s individual account under AS 14.25.340 and 14.25.350(a), to the trust account established under AS 14.25.350(e), without deduction from the survivor’s pension; and

     (2) to the appropriate accounts and funds under AS 14.25.350(b) — (e).

 (d) If a member’s death is caused by an act of assault, assassination, or terrorism directly related to the person’s status as a member, whether the act occurs on or off the member’s job site, the death shall be considered to have occurred in the performance of and within the scope of the member’s duties for purposes of (a)(2) of this section. If the expressed or apparent motive and intent of the perpetrator of the harm inflicted upon the member was due to the performance of the member’s job duties or employment, the death shall be considered to be directly related to the member’s status as a member. A member’s job duties are those performed within the course and scope of the person’s employment with an employer.

 (e) On the date the member would have first qualified for normal retirement if the member had survived, the retirement benefit shall be determined under the provisions of AS 14.25.420 — 14.25.440, 14.25.470, and 14.25.480. In addition to payment of the member’s individual account, the surviving spouse or, if there is no surviving spouse, the surviving dependent children of the member, shall receive an additional benefit in an amount equal to the accumulated contributions that would have been made to the deceased member’s individual account under AS 14.25.340(a) and 14.25.350(a), based on the deceased member’s gross monthly compensation at the time of the member’s occupational death, from the time of the member’s death to the date the member would have first qualified for normal retirement if the member had survived. Earnings shall be allocated to the additional benefit calculated under this subsection based on the actual rate of return, net of expenses, of the trust account established under AS 14.25.350(e) over the period that the contributions would have been made. This additional amount and allocated earnings shall be paid in the same manner as determined for the member’s individual account under AS 14.25.420 — 14.25.460 to the extent permitted by the Internal Revenue Service. A member who died and whose survivors receive occupational death benefits under this section shall be considered to have retired directly from the plan on the date the member would have first qualified for normal retirement if the member had survived. The period during which a survivor’s pension is paid under this subsection constitutes membership service for the purposes of determining vesting in employer contributions under AS 14.25.390(b) and eligibility for medical benefits under AS 14.25.310 — 14.25.590 and AS 39.30.300 — 39.30.495.




Sec. 14.25.488. Survivors’ pension adjustment.
 (a) Once each year, the administrator shall increase payments to a person 60 years of age or older receiving a survivor’s pension under AS 14.25.485(i) or 14.25.487(c) and to a person who has received a survivor’s pension under AS 14.25.485(i) or 14.25.487(c) for at least eight years, who is not otherwise eligible for an increase under this section.

 (b) The amount of the increase is a percentage of the current survivor’s pension equal to the lesser of 50 percent of the increase in the cost of living in the preceding calendar year or six percent.

 (c) If a survivor was not receiving a pension during the entire preceding calendar year, the increase in the survivor’s pension under this section shall be adjusted by multiplying it by a fraction, the numerator of which is the number of months for which the pension was received in the preceding calendar year and the denominator of which is 12.

 (d) The administrator shall increase the initial survivor’s pension paid to a survivor of a member who died while receiving disability benefits by a percentage equal to the total cumulative percentage that has been applied to the member’s disability benefit under AS 14.25.486.

 (e) An increase in benefit payments under this section is effective July 1 of each year and is based on the percentage increase in the Consumer Price Index for urban wage earners and clerical workers for Anchorage, Alaska, during the previous calendar year, as determined by the United States Department of Labor, Bureau of Labor Statistics.

 (f) Pension adjustments under this section shall terminate the last day of the month following the date on which a survivor is no longer receiving a survivor’s pension under AS 14.25.485(i) or 14.25.487(c).




Sec. 14.25.489. Premiums for retiree major medical insurance coverage upon termination of disability benefits or survivor’s pension.
The premium for retiree major medical insurance coverage payable by a member whose disability benefit is terminated under AS 14.25.485(g) or by an eligible survivor whose survivor pension is terminated under AS 14.25.485(i) or 14.25.487(e) when the member would have been eligible for normal retirement if the member had survived shall be determined under AS 14.25.480(g)(2) as if the member or survivor were eligible for Medicare.


Sec. 14.25.490. Amendment and termination of plan.
 (a) The state has the right to amend the plan at any time and from time to time, in whole or in part, including the right to make retroactive amendments referred to in 26 U.S.C. 401(b).

 (b) The plan administrator may not modify or amend the plan retroactively in such a manner as to reduce the benefits of any member accrued to date under the plan by reason of contributions made before the modification or amendment except to the extent that the reduction is permitted by the Internal Revenue Code.

 (c) The state may, in its discretion, terminate the plan in whole or part at any time without liability for the termination. If the plan is terminated, all investments remain in force until all individual accounts have been completely distributed under the plan, and, after all plan liabilities are satisfied, excess assets revert to the employer.

 (d) Any contribution made by an employer to the plan because of a mistake of fact must be returned to the employer by the administrator within one year after the contribution or discovery, whichever is later.




Sec. 14.25.500. Exclusive benefit.
 (a) The corpus or income of the assets held in trust as required by the plan may not be diverted or used for other than the exclusive benefit of the participants.

 (b) If plan benefits are provided through the distribution of annuity or insurance contracts, any refunds or credits in excess of plan benefits due to dividends, earnings, or other experience rating credits, or surrender or cancellation credits, shall be paid to the trust fund.

 (c) The assets of the plan may not be used to pay premiums or contributions of the employer under another plan maintained by the employer.

 (d) The administrator shall use forfeitures in the fixed benefit account of the plan that arise for any reason, including from termination of employment or death, to reduce employer contributions. Forfeitures may not be applied to increase the benefits of any member.

 (e) The administrator shall determine the amount of any fixed benefit that is determined on the basis of actuarial tables using assumptions approved by the commissioner. The amount of benefits is not subject to employer discretion.




Sec. 14.25.510. Nonguarantee of returns, rates, or benefit amounts.
The plan created by AS 14.25.310 — 14.25.590 is, with respect to individual accounts, treated as a defined contribution plan, and not a defined benefit plan. The amount of money in the individual account of a participant depends on the amount of contributions and the rate of return from investments of the account that varies over time. If benefits are paid in the form of an annuity, the benefit amount payable is dependent on the amount of money in the account and the interest rates applied and service fees charged by the annuity payor at the time the annuity is purchased from the carrier and benefits are first paid. Nothing in this plan guarantees a participant
     (1) a rate of return or interest rate other than that actually earned by the account of the participant, less applicable administrative expenses; or

     (2) an annuity based on interest rates or service charges other than interest rates available from and service charges by the annuity payor in effect at the time the annuity is paid.




Sec. 14.25.520. Nonguarantee of employment.
The provisions of AS 14.25.310 — 14.25.590 are not a contract of employment between an employer and an employee, nor do they confer a right of an employee to be continued in the employment of an employer, nor are they a limitation of the right of an employer to discharge an employee with or without cause.


Sec. 14.25.530. Fraud.
 (a) A person who knowingly makes a false statement or falsifies or permits to be falsified a record of this plan in an attempt to defraud the plan is guilty of a class A misdemeanor.

 (b) In this section, “knowingly” has the meaning given in AS 11.81.900(a).




Sec. 14.25.532. Pension forfeiture.
The provisions of AS 37.10.310 apply to pension benefits under AS 14.25.310 — 14.25.590.


Sec. 14.25.540. Transfer into defined contribution retirement plan by nonvested members of defined benefit retirement plan.
 (a) Subject to (i) of this section, an active member of the defined benefit retirement plan of the teachers’ retirement system is eligible to participate in the defined contribution retirement plan established under AS 14.25.310 — 14.25.590 if that member has not vested. Participation in the defined contribution retirement plan is in lieu of participation in the defined benefit retirement plan established under AS 14.25.009 — 14.25.220.

 (b) A member who has vested in a defined benefit retirement plan is not eligible to transfer under this section.

 (c) Each eligible member who elects to participate in the defined contribution retirement plan shall have transferred to a new account the member contribution account balance held in trust for the member under the defined benefit retirement plan of the teachers’ retirement system. A matching employer contribution shall be made on behalf of that employee to the new account. The employer shall make the matching contribution from funds other than the trust funds of the defined benefit retirement plan. The amount of the matching employer contribution is subject to, and may not exceed, the limitation of 26 U.S.C. 415(c) during the applicable limitation year as defined in AS 14.25.590. If the matching employer contribution would exceed the limits during the limitation year in which the transfer occurs, the remaining amount of the matching employer contribution shall be made in the next limitation year, if the limits would not be exceeded.

 (d) Upon a transfer, all membership service previously earned under the defined benefit retirement plan shall be nullified for purposes of entitlement to a future benefit under the defined benefit retirement plan but shall be credited for purposes of determining vesting in employer contributions under AS 14.25.390(b) and eligibility to elect medical benefits under AS 14.25.470. Membership service allowed for credit toward medical benefits does not include any service credit purchased under AS 14.25.075 for employment by an employer who is not a participating employer in this chapter.

 (e) An eligible member whose accounts are subject to a qualified domestic relations order may not make an election to participate in the defined contribution retirement plan under this subsection unless the qualified domestic relations order is amended or vacated and court-certified copies of the order are received by the administrator.

 (f) As directed by the participant, the board shall transfer or cause to be transferred the appropriate amounts to the designated account. The board shall establish transfer procedures by regulation, but the actual transfer may not be later than 30 days after the effective date of the member’s participation in the defined contribution retirement plan unless the major financial markets for securities available for a transfer are seriously disrupted by an unforeseen event that also causes the suspension of trading on any national securities exchange in the country where the securities were issued. In that event, the 30-day period of time may be extended by a resolution of the board of trustees. Transfers are not commissionable or subject to other fees and may be in the form of securities or cash as determined by the board. Securities shall be valued as of the date of receipt in the participant’s account.

 (g) If the board or the administrator receives notification from the United States Department of the Treasury, Internal Revenue Service, that this section or a portion of this section will cause the retirement system under this chapter, or a portion of the retirement system under this chapter, to be disqualified for tax purposes under the Internal Revenue Code, the portion that will cause the disqualification does not apply, and the board and the administrator shall notify the presiding officers of the legislature.

 (h) A member who is eligible to elect transfer to the defined contribution retirement plan must make the election not later than 12 months after the first day of the month following the administrator’s receipt of the notification that the member’s employer consents to transfers of its members under (i) of this section. The election to participate in the defined contribution retirement plan must be made in writing on forms and in the manner prescribed by the administrator. Before accepting an election to participate in the defined contribution retirement plan, the administrator must provide the employee planning on making an election to participate in the defined contribution retirement plan with information, including calculations to illustrate the effect of moving the employee’s retirement plan from the defined benefit retirement plan to the defined contribution retirement plan as well as other information to clearly inform the employee of the potential consequences of the employee’s election. An election made under this subsection to participate in the defined contribution retirement plan is irrevocable. Upon making the election, the participant shall be enrolled as a member of the defined contribution retirement plan, the member’s participation in the plan shall be governed by the provisions of AS 14.25.310 — 14.25.590, and the member’s participation in the defined benefit retirement plan under AS 14.25.009 — 14.25.220 shall terminate. The participant’s enrollment in the defined contribution retirement plan shall be effective the first day of the month after the administrator receives the completed enrollment forms. An election made by an eligible member who is married is not effective unless the election is signed by the individual’s spouse.

 (i) A member may make an election under this section only if the member’s employer participates in both the defined benefit retirement plan and the defined contribution retirement plan and consents to transfers under this section. The employer shall notify the administrator if the employer consents to allowing the employer’s members to choose to transfer from the defined benefit retirement plan to the defined contribution retirement plan under this section. An employer’s notice to allow transfers is irrevocable and applicable to all eligible employees of the employer.

 (j) In this section,
     (1) “defined benefit retirement plan” means the retirement plan established in AS 14.25.009 — 14.25.220;

     (2) “defined contribution retirement plan” means the retirement plan established in AS 14.25.310 — 14.25.590.




Sec. 14.25.550. Membership in teachers’ and public employees’ retirement systems.
A person who is employed at least half-time in the public employees’ defined contribution retirement plan (AS 39.35.700 — 39.35.990) during the same period that the person is employed at least half-time in a position in the teachers’ defined contribution retirement plan (AS 14.25.310 — 14.25.590) shall receive credited service under each plan for half-time employment. However, the amount of credited service a person receives under the public employees’ defined contribution retirement plan during a school year may not exceed the amount necessary, when added to the amount of credited service earned during the school year under the teachers’ defined contribution retirement plan, to equal one year of credited service.


Sec. 14.25.560. Legislators who have been teachers.
 (a) A state legislator who was an active member of the defined contribution plan under other sections of AS 14.25.310 — 14.25.590 within the 12 months immediately preceding election to office may, subject to the requirements of (b) of this section, elect to be an active member of the teachers’ defined contribution retirement plan for as long as the state legislator serves continuously as a state legislator if, within 90 days after taking the oath of office,
     (1) the state legislator directs the employer in writing to
          (A) pay into this plan the employer contributions required for a member under AS 14.25.310 — 14.25.590; and

          (B) deduct from the state legislator’s salary and pay into this plan
               (i) the employee contributions required for a member under AS 14.25.310 — 14.25.590; and

               (ii) an amount equal to the difference between the total employer and state contributions required for a member under AS 14.25.310 — 14.25.590 and the employer contributions that would be required under the public employees’ defined contribution retirement plan (AS 39.35.700 — 39.35.990) if the legislator were covered under that plan; and

     (2) notice is given the administrator in writing.

 (b) A state legislator is not entitled to elect membership under (a) of this section if the state legislator is covered for the same period of service under the public employees’ defined contribution retirement plan (AS 39.35.700 — 39.35.990). An election of membership under (a) of this section is retroactive to the date the state legislator took the oath of office. A state legislator may not receive membership credit under (a) of this section for legislative service performed before the legislative session during which the state legislator elected membership under (a) of this section. In order to continue in membership service under (a) of this section, the state legislator must earn at least 0.3 years of membership service under other sections of AS 14.25.310 — 14.25.590 during each five-year period.




Sec. 14.25.570. Participation by National Education Association employees. [Repealed, § 116(a) ch 20 SLA 2007.]
Sec. 14.25.580. Participation by Special Education Service Agency employees.
An employee of the Special Education Service Agency may participate in the system under this chapter if the employee possesses or is eligible to possess a teacher certificate under AS 14.20.020.


Sec. 14.25.582. Special rules for treatment of qualified military service.
 (a) Notwithstanding any contrary provisions of AS 14.25.310 — 14.25.590, with respect to qualified military service, contributions shall be made and benefits and service credit shall be provided in accordance with 26 U.S.C. 414(u).

 (b) To the extent required by 26 U.S.C. 401(a)(37), if a member dies while performing qualified military service, as defined in 38 U.S.C. 43, the survivors of the member are entitled to any additional benefits that would have been provided to the survivors under the plan had the member resumed employment and then terminated employment on account of death. For purposes of this section, periods of qualified military service are not included in calculations of credited service.

 (c) Consistent with and to the extent required by 26 U.S.C. 414(u)(12), a member receiving differential wage payments from an employer shall be treated as employed by that employer, and the differential wage payment shall be treated as compensation for purposes of applying the limits on annual additions under 26 U.S.C. 415(c). For purposes of this subsection, “differential wage payment” means any payment that
     (1) is made by an employer to an individual with respect to any period during which the individual is performing service in the uniformed services, as defined in 38 U.S.C. 43, while on active duty for a period of more than 30 days; and

     (2) represents all or a portion of the wages the individual would have received from the employer if the individual were performing service for the employer.




Sec. 14.25.590. Definitions.
In AS 14.25.310 — 14.25.590, unless the context requires otherwise,
     (1) “administrator” has the meaning given in AS 14.25.220;

     (2) “alternate payee” means a person entitled to a portion of the distribution from an individual account under a qualified domestic relations order;

     (3) “annuitant” means a member, beneficiary, or alternate payee who is receiving a benefit under this plan;

     (4) “beneficiary” means the person or persons entitled to receive benefits that may be due from the plan upon the death of the member or alternate payee;

     (5) “board” has the meaning given in AS 14.25.220;

     (6) “calendar year” has the meaning given in AS 39.35.680;

     (7) “compensation”
          (A) means
               (i) the total remuneration earned by an employee for personal services rendered, including cost-of-living differentials, as reported on the employee’s Federal Income Tax Withholding Statement (Form W-2) from the employer for the calendar year;

               (ii) the member contribution to the teachers’ retirement system under AS 14.25.340;

          (B) does not include retirement benefits, severance pay or other separation bonuses, welfare benefits, per diem, expense allowances, workers’ compensation payments, payments for leave not used whether those leave payments are scheduled payments, lump-sum payments, donations, or cash-ins, any remuneration contributed by the employer for or on account of the employee under this plan or under any other qualified or nonqualified employee benefit plan, or any remuneration not specifically included above that would have been excluded under 26 U.S.C. 3121(a) (Internal Revenue Code) if the employer had remained in the Federal Social Security System;

          (C) notwithstanding (B) of this paragraph, includes any amount that is contributed by the employer under a salary reduction agreement and that is not includible in the gross income of the employee under 26 U.S.C. 125, 132(f)(4), 402(e)(3), 402(h)(1)(B), or 403(b) (Internal Revenue Code); the annual compensation limitation for the member, which is so taken into account for those purposes, may not exceed $200,000, as adjusted for the cost of living in accordance with 26 U.S.C. 401(a)(17)(B) (Internal Revenue Code), with the limitation for a fiscal year being the limitation in effect for the calendar year within which the fiscal year begins;

     (8) “dependent child” has the meaning given in AS 14.25.220;

     (9) “distribution commencement date” has the meaning given in AS 14.25.440(a);

     (10) “employer” means a public school district, the Board of Regents of the University of Alaska, the Department of Education and Early Development, or the regional resource centers;

     (11) “fund” means the assets of the plan;

     (12) “individual account” means the total maintained by the plan in an investment account within the trust fund, established for each member for the purposes of allocation of the member’s contributions, employer contributions on behalf of the member, and earnings credited to each of those contributions, investment gains and losses, and expenses, as well as reporting of the member’s benefit under the plan;

     (13) “Internal Revenue Code” has the meaning given in AS 14.25.220;

     (14) “investment funds” means those separate funds that are provided within and that make up the trust fund and that are established for the purpose of directing investment through the exercise of the sole control of a member, beneficiary, or alternate payee under the terms of the plan and trust agreement;

     (15) “limitation year” means the year for which contributions are made to a member’s individual account as reported to the Internal Revenue Service under the limits described in 26 U.S.C. 415(c);

     (16) “member” means an employee of an employer or a former employee of an employer who retains a right to benefits under the plan;

     (17) “membership service” means full-time or part-time employment with an employer in the plan;

     (18) “normal retirement age” means the age set for Medicare eligibility at the time the member retires;

     (19) “participant” means the person who has a vested right to an individual account, such as a member, an alternate payee if the account is subject to a qualified domestic relations order, the member’s beneficiary if the member is deceased, or an alternate payee’s beneficiary if the alternate payee is deceased;

     (20) “plan” means the retirement benefit plan established under AS 14.25.310 — 14.25.590;

     (21) “prudent investment standard” means the degree of care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims;

     (22) “qualified domestic relations order” means a divorce or dissolution judgment under AS 25.24, including an order approving a property settlement, that
          (A) creates or recognizes the existence of an alternate payee’s right to, or assigns to an alternate payee the right to, receive all or a portion of the individual account, or the benefits payable with respect to a member;

          (B) sets out the name and last known mailing address, if any, of the member and of each alternate payee covered by the order;

          (C) sets out the amount or percentage of the member’s benefit, or of any survivor’s benefit, to be paid to the alternate payee, or sets out the manner in which that amount or percentage is to be determined;

          (D) sets out the number of payments or period to which the order applies;

          (E) sets out the retirement plan to which the order applies;

          (F) does not require any type or form of benefit or any option not otherwise provided by AS 14.25.310 — 14.25.590;

          (G) does not require an increase of benefits in excess of the amount provided by AS 14.25.310 — 14.25.590; and

          (H) does not require the payment, to an alternate payee, of benefits that are required to be paid to another alternate payee under another order previously determined to be a qualified domestic relations order;

     (23) “retiree” means an eligible person who has elected to receive the medical benefits under AS 14.25.480;

     (24) “retirement fund” or “fund” means the fund in which the assets of the plan, including income and interest derived from the investment of money, are deposited and held;

     (25) “school year” has the meaning given in AS 14.25.220;

     (26) “system” has the meaning given in AS 14.25.220;

     (27) “teacher” and “member” are used interchangeably under AS 14.25.310 — 14.25.590 and mean a person eligible to participate in the plan and who is covered by the plan, limited to
          (A) a certificated full-time or part-time elementary or secondary teacher, a certificated school nurse, or a certificated person in a position requiring a teaching certificate as a condition of employment in a public school of the state, the Department of Education and Early Development, or the Department of Labor and Workforce Development;

          (B) a full-time or part-time teacher of the University of Alaska or a person occupying a full-time administrative position at the University of Alaska that requires academic standing; the approval of the administrator must be obtained before an administrative position qualifies for membership in the plan; however, a teacher or administrative person at the university who is participating in a university retirement program under AS 14.40.661 — 14.40.799 is not a member under this plan;

          (C) a full-time or part-time instructor of the Department of Labor and Workforce Development;

     (28) “year of service” means service during the dates set for the school year; partial-year service credit is given for membership service as follows:
          (A) during any school year,
               (i) less than nine days, no credit;

               (ii) nine days or more but less than 27 days, 0.1 years;

               (iii) 27 days or more but less than 45 days, 0.2 years;

               (iv) 45 days or more but less than 63 days, 0.3 years;

               (v) 63 days or more but less than 81 days, 0.4 years;

               (vi) 81 days or more but less than 100 days, 0.5 years;

               (vii) 100 days or more but less than 118 days, 0.6 years;

               (viii) 118 days or more but less than 136 days, 0.7 years;

               (ix) 136 days or more but less than 154 days, 0.8 years;

               (x) 154 days or more but less than 172 days, 0.9 years;

               (xi) 172 days or more, 1.0 years;

          (B) service performed on a part-time basis of half time or more shall be credited in proportion to the amount of credit that would have been received for service performed on a full-time basis.




Article 1. Compulsory Education.


Chapter 30. Pupils and Educational Programs for Pupils.

Sec. 14.30.010. When attendance compulsory.
 (a) Every child between seven and 16 years of age shall attend school at the public school in the district in which the child resides during each school term. Every parent, guardian or other person having the responsibility for or control of a child between seven and 16 years of age shall maintain the child in attendance at a public school in the district in which the child resides during the entire school term, except as provided in (b) of this section.

 (b) This section does not apply if a child
     (1) is provided an academic education comparable to that offered by the public schools in the area, either by
          (A) attendance at a private school in which the teachers are certificated according to AS 14.20.020;

          (B) tutoring by personnel certificated according to AS 14.20.020; or

          (C) attendance at an educational program operated in compliance with AS 14.45.100 — 14.45.200 by a religious or other private school;

     (2) attends a school operated by the federal government;

     (3) has a physical or mental condition that a competent medical authority determines will make attendance impractical;

     (4) is in the custody of a court or law enforcement authorities;

     (5) is temporarily ill or injured;

     (6) has been suspended or expelled under AS 14.03.160 or suspended or denied admittance under AS 14.30.045;

     (7) resides more than two miles from either a public school or a route on which transportation is provided by the school authorities, except that this paragraph does not apply if the child resides within two miles of a federal or private school that the child is eligible and able to attend;

     (8) is excused by action of the school board of the district at a regular meeting or by the district superintendent subject to approval by the school board of the district at the next regular meeting;

     (9) has completed the 12th grade;

     (10) is enrolled in
          (A) a state boarding school established under AS 14.16; or

          (B) a full-time program of correspondence study approved by the department; in those school districts providing an approved correspondence study program, a student may be enrolled either in the district correspondence program or in the centralized correspondence study program;

     (11) is equally well-served by an educational experience approved by the school board as serving the child’s educational interests despite an absence from school, and the request for excuse is made in writing by the child’s parents or guardian and approved by the principal or administrator of the school that the child attends;

     (12) is being educated in the child’s home by a parent or legal guardian.

 (c) If a parent, legal guardian, or other person having the responsibility for or control of the child elects to enroll a child who is six years of age in first grade at a public school, after enrollment, the child is subject to the provisions of (a) and (b) of this section. If the parent or guardian of a child who is six years of age and is enrolled in first grade at a public school determines, within 60 days after the child is enrolled, that the best interests of the child are not being served by enrollment in the first grade, the child may be withdrawn from school, and the provisions of (a) and (b) of this section do not apply to the child until the child is seven years of age.




Sec. 14.30.020. Violations.
A person who knowingly fails to comply with AS 14.30.010 is guilty of a violation. Each five days of unlawful absence under AS 14.30.010 is a separate violation.


Sec. 14.30.030. Prevention and reduction of truancy.
The governing body of a school district, including a regional educational attendance area, shall establish procedures to prevent and reduce truancy.


Sec. 14.30.040. Extension of provisions to United States public schools for aborigines. [Repealed, § 59 ch 98 SLA 1966.]
Sec. 14.30.045. Grounds for suspension or denial of admission.
A school age child may be suspended from or denied admission to the public school that the child is otherwise entitled to attend only for the following causes:
     (1) continued wilful disobedience or open and persistent defiance of reasonable school authority;

     (2) behavior that is inimicable to the welfare, safety, or morals of other pupils or a person employed or volunteering at the school;

     (3) a physical or mental condition that in the opinion of a competent medical authority will render the child unable to reasonably benefit from the programs available;

     (4) a physical or mental condition that in the opinion of a competent medical authority will cause the attendance of the child to be inimicable to the welfare of other pupils;

     (5) conviction of a felony that the governing body of the district determines will cause the attendance of the child to be inimicable to the welfare or education of other pupils.




Sec. 14.30.047. Admission or readmission when cause no longer exists.
 (a) A child who has been suspended from or denied admittance to a school under AS 14.30.045(3) or (4) shall be permitted to attend school when the child is obviously recovered or presents to the governing body a statement in writing from a competent medical authority that the child is no longer afflicted with, or suffering from, the physical or mental condition to the extent that it is a cause for suspension or denial of admission under AS 14.30.045(3) or (4).

 (b) A child who has been suspended from or denied admittance to a school for any other cause provided by AS 14.30.045 shall be permitted to attend school when it reasonably appears that the cause has been remedied.




Sec. 14.30.050. Truant officers. [Repealed, § 3 ch 78 SLA 1987.]

Article 2. Physical Examinations and Screening Examinations.


Sec. 14.30.060. Purpose of AS 14.30.070 — 14.30.110. [Repealed, § 59 ch 98 SLA 1966.]
Sec. 14.30.065. Supervision.
The program of physical examination and immunizations prescribed by AS 14.30.065 — 14.30.127 shall be under the general supervision and in accordance with regulations of the Department of Health and Social Services.


Sec. 14.30.070. Physical examination required.
 (a) [Repealed, §§ 25, 29 ch 2 SSSLA 2015.]
 (b) The Department of Health and Social Services may require the district to conduct physical examinations that it considers necessary, and may reimburse the district for the examinations on the basis and to the extent the commissioner of health and social services prescribes by regulation.

 (c) Examinations shall be made by a competent physician or, within the scope of chiropractic practice, by a chiropractor, except that if the services of a physician or chiropractor cannot be obtained or if authorized by the commissioner of health and social services examinations may be made by a nurse.




Sec. 14.30.075. Physical examinations for teachers.
 (a) A school district may require physical examinations of teachers as a condition of employment. A school district is not required to pay the cost of physical examinations for teachers. This section does not affect the coverage of any health insurance benefits that a school district provides to teachers.

 (b) In this section, “school district” has the meaning given in AS 14.30.350.




Secs. 14.30.080 — 14.30.110. Exclusion from attendance; vaccinations; supervision and expenditures for physical examinations; exemptions from examinations or vaccinations. [Repealed, § 59 ch 98 SLA 1966.]
Sec. 14.30.120. Certificate of physical examination. [Repealed, § 25 ch 2 SLA 2015, effective June 30, 2016.] .

Sec. 14.30.125. Immunization.
If in the judgment of the commissioner of health and social services it is necessary for the welfare of the children or the general public in an area, the governing body of the school district shall require the children attending school in that area to be immunized against the diseases the commissioner of health and social services may specify.


Sec. 14.30.127. Vision and hearing screening examinations.
 (a) A vision and hearing screening examination shall be given to each child attending school in the state. The examination shall be made when the child enters school or as soon thereafter as is practicable, and at regular intervals specified by regulation by the governing body of the district.

 (b) The Department of Health and Social Services shall
     (1) set standards for the performance of vision and hearing screening;

     (2) train and certify public health nurses and school district employees to conduct hearing and vision screening tests;

     (3) assist with referral and follow-up of children needing professional examination or treatment; and

     (4) assist with maintenance and repair of screening equipment.




Secs. 14.30.130 — 14.30.140. Readmission of child excluded on account of communicable disease; examination and treatment by municipal health officers. [Repealed, § 59 ch 98 SLA 1966.]

Article 3. Pupil Health.


Sec. 14.30.141. Self-administration and documentation of medication.
 (a) A public school shall permit the self-administration of medication by a pupil for asthma or anaphylaxis if, during the current school year, the pupil’s parent or guardian provides the school
     (1) written authorization for the self-administration of the medication;

     (2) written certification from the pupil’s health care provider that the pupil
          (A) has asthma or a condition that may lead to anaphylaxis;

          (B) has received instruction in the proper method of self-administration of the medication; and

          (C) has demonstrated to the health care provider the skill level necessary to use the medication and any device that is necessary to administer the medication as prescribed;

     (3) a release of liability for the school and its employees or agents for injury arising from the self-administration or storage of the medication;

     (4) an agreement to indemnify and hold harmless the school and its employees or agents for any claims arising out the self-administration or storage of the medication;

     (5) a written treatment plan for the pupil that is signed by the pupil’s health care provider for managing asthma or anaphylaxis episodes, a list and dosage of medications needed during school hours, and permission for and instruction on storage of the medication at school; and

     (6) any other documentation required by the school that is consistent with this section.

 (b) The public school shall provide written notification to the pupil’s parent or guardian of the school’s absence of liability related to the self-administration of medication under this section.

 (c) A pupil who is permitted to self-administer medication under this section shall be permitted to carry and to store with the school nurse or other designated school official an inhaler or autoinjectable epinephrine, or both, at all times.

 (d) If a student uses the student’s prescribed medication in a manner other than as prescribed, disciplinary action according to school codes may be imposed upon the student. The imposed disciplinary action may not limit or restrict the student’s immediate access to the student’s prescribed medication.

 (e) In this section, “health care provider” means a licensed physician, advanced practice registered nurse, physician assistant, village health aide, or pharmacist operating within the scope of the health care provider’s authority.




Sec. 14.30.142. Concussions in student athletes: prevention and reporting.
 (a) The governing body of a school district shall consult with the Alaska School Activities Association to develop and publish guidelines and other information to educate coaches, student athletes, and parents of student athletes regarding the nature and risks of concussions. Guidelines developed under this section must include a description of the risks of return to play and standards for return to play, including the procedures required under (c) and (d) of this section.

 (b) A school shall annually provide to a student and the parent or guardian of a student who is under 18 years of age written information on the nature and risks of concussions. A student may not participate in school athletic activities unless the student and the parent or guardian of a student who is under 18 years of age have signed a verification of receipt of the information required under this subsection.

 (c) A student who is suspected of having sustained a concussion during a practice or game shall be immediately removed from the practice or game.

 (d) A student who has been removed from participation in a practice or game for suspicion of concussion may not return to participation in practice or game play until the student has been evaluated and cleared for participation in writing by an athletic trainer or other qualified person who has received training, as verified in writing or electronically by the qualified person, in the evaluation and management of concussions. In this subsection, “qualified person” means either a
     (1) health care provider who is licensed in the state or exempt from licensure under state law; or

     (2) person who is acting at the direction and under the supervision of a physician who is licensed in the state or exempt from licensure under AS 08.64.370(1), (2), or (4).

 (e) A person who conducts an evaluation under (d) of this section and who is not paid for conducting the evaluation may not be held liable for civil damages resulting from an act or omission during the evaluation, except that the person may be held liable for reckless or intentional misconduct and for gross negligence.




Sec. 14.30.143. Concussions in student athletes: school district immunity.
 (a) A school district may not be held liable for an injury to or the death of a person caused by a concussion and resulting from the action or inaction of a person employed by or under contract with a nonprofit youth organization if
     (1) the action or inaction occurred during the delivery of services by the district or organization in compliance with AS 14.30.142;

     (2) the organization is under contract with the district to provide the services; and

     (3) before the provision of services, the organization provided to the district written verification of
          (A) a valid insurance policy covering the injury or death in an amount not less than $50,000 for each person and $100,000 for each incident;

          (B) compliance with the protocol for prevention and reporting of concussions required in AS 14.30.142.

 (b) This section may not be construed to impair or modify the ability of a person to recover damages for harm caused by the negligent or reckless actions of an employee or contractor of a school district or by the existence of a condition, equipment, program, or structure known by the school district or organization to be unsafe.

 (c) In this section, “youth organization” means a public or private entity qualified to do business in the state that provides a program or service to persons under 19 years of age.




Secs. 14.30.150 — 14.30.170. Scope of article; construction; penalty for false certificates. [Repealed, § 59 ch 98 SLA 1966.]

Article 4. Psychiatric and Behavioral Evaluations and Treatments.


Sec. 14.30.171. Prohibited actions.
 (a) Except as provided in AS 14.30.172 — 14.30.176, school personnel may not, unless otherwise authorized by law or a specific policy adopted by a governing body of a school district,
     (1) recommend to a parent or guardian that a child take or continue to take a psychotropic drug as a condition for attending a public school;

     (2) require that a child take or continue to take a psychotropic drug as a condition for attending a public school, except when, in the opinion of the child’s treating physician,
          (A) the medication is necessary for the mental health of the child; or

          (B) the child poses a risk of harm to self or others without the medication;

     (3) conduct a psychiatric evaluation of a child;

     (4) recommend a specific licensed physician, psychologist, or other health specialist to a parent or guardian for a child; or

     (5) recommend that a parent or guardian seek or use for a child
          (A) a psychotropic medication; or

          (B) a psychiatric or psychological treatment.

 (b) As used in this section, “school personnel” means persons employed by a public school or school district to work in a public school, except for a person who holds a special services type C certificate issued under AS 14.20 that qualifies the person to be employed to provide related services to students, as described in regulations adopted by the board.




Sec. 14.30.172. Communication not prohibited.
 (a) Nothing in AS 14.30.171 may be construed to prohibit school personnel from
     (1) consulting or sharing classroom-based observations with parents or guardians regarding a student’s academic and functional performance, behavior in the classroom or school, or the need for evaluation for special education or related services as long as school personnel do not make an assertion or recommendation that violates AS 14.30.171; or

     (2) exercising their authority relating to the placement within the school or readmission of a child who may be or has been suspended or expelled for a violation of a school disciplinary and safety program adopted under AS 14.03.160, AS 14.30.045, or AS 14.33.110 — 14.33.140.

 (b) Nothing in AS 14.30.171 may be construed to prevent teachers or other school personnel from complying with the requirements of AS 47.17.020(a) or (b) or from filing a report to authorities if a child poses a serious and imminent risk to the child’s or another person’s safety.




Sec. 14.30.174. Compliance with federal education law.
 (a) Notwithstanding AS 14.30.171(a)(3) and (5), a behavioral or mental health professional working within a public school system may, in compliance with federal education law or applicable state law,
     (1) recommend, but not require, a psychiatric or behavioral health evaluation of a child; and

     (2) recommend, but not require, psychiatric, psychological, or behavioral treatment for a child.

 (b) In this section,
     (1) “behavioral health professional” means a person who has a master’s degree in psychology, social work, counseling, or a related field with specialization or experience in working with children experiencing behavioral, physical, and emotional disabilities, and is working within the scope of the person’s training and experience;

     (2) “federal education law” means 20 U.S.C. 1400 — 1482 (Individuals with Disabilities Education Act), 20 U.S.C. 7101 — 7143 (Safe and Drug-Free Schools and Communities Act of 1994), 29 U.S.C. 794 (nondiscrimination under federal grants and programs), and 42 U.S.C. 12101 — 12213 (equal opportunity for individuals with disabilities);

     (3) “mental health professional” has the meaning given in AS 47.30.915.




Sec. 14.30.176. List of community resources.
 (a) Notwithstanding AS 14.30.171(a)(4), a school district may make available to an interested parent or guardian a list of community resources, including mental health services if the list conspicuously states the following: “This list is provided as a resource to you. The school neither recommends nor requires that you use this list or any of the services provided by individuals or entities on the list. It is for you to decide what services, if any, to use and from whom you wish to obtain them.”

 (b) A list provided under (a) of this section must include the name, specialty, and credential of each mental health service provider listed.




Sec. 14.30.177. Violations.
Each school board shall adopt a policy that provides that an employee violating AS 14.30.171 — 14.30.176 may be subject to disciplinary action.


Sec. 14.30.179. Definition.
In AS 14.30.171 — 14.30.179, “public school” means a school operated by publicly elected or appointed school officials in which the program and activities are under the control of those officials and that is supported by public funds.


Article 5. Education for Children With Disabilities.


Sec. 14.30.180. Purpose.
It is the purpose of AS 14.30.180 — 14.30.350 to
     (1) provide an appropriate public education for each child with a disability in the state who is at least three years of age but less than 22 years of age;

     (2) allow procedures and actions necessary to comply with the requirements of federal law, including 20 U.S.C. 1400 — 1482 (Individuals with Disabilities Education Act).




Sec. 14.30.185. Programs shall be established. [Repealed, § 59 ch 98 SLA 1966.]
Sec. 14.30.186. Coverage; regulations.
 (a) Special education and related services shall be provided by
     (1) a borough or city school district for a child with a disability residing within the district;

     (2) the board of a regional educational attendance area operating a school in the area for a child with a disability residing in the area served by the school;

     (3) the borough, city school district, or regional educational attendance area in which a treatment facility or a correctional or youth detention facility is located for a child with a disability placed at the facility;

     (4) a state boarding school established under AS 14.16 for a child with a disability enrolled at a state boarding school; or

     (5) a school district that provides a statewide correspondence study program for a child with a disability who is enrolled in the program.

 (b) [Repealed, § 41 ch 67 SLA 2001.]
 (c) [Repealed, § 19 ch 147 SLA 1984.]
 (d) [Repealed, § 19 ch 147 SLA 1984.]
 (e) If the parent of a child with a disability elects to educate the child as allowed under AS 14.30.010(b), the child may not be compelled to receive the special education and related services provided under AS 14.30.180 — 14.30.350.

 (f) The department shall, by regulation, establish standards for the allocation of financial responsibilities and the coordination of the provision of special education and related services among the educational agencies listed in (a) of this section when more than one educational agency is responsible for providing those services.




Sec. 14.30.190. Establishment of standards by Department of Health and Social Services. [Repealed, § 4 ch 144 SLA 1970.]
Sec. 14.30.191. Educational evaluation and placement.
 (a) A school district shall obtain the written informed consent of the child’s parent before an initial evaluation or placement of a child with a disability in a program of special education and related services.

 (b) After initial placement in a program of special education and related services and not less than once every three years for as long as the child is assigned to the program, a child with a disability shall receive an educational evaluation.

 (c) Before a school district initiates or refuses a change in the placement or educational program of a child with a disability, the district shall notify the child’s parent.

 (d) Upon completion of an evaluation or reevaluation under this section, the school district shall provide to the parent of each child evaluated under this section an opportunity to participate in the determination of the
     (1) child’s eligibility for special education and related services; and

     (2) educational placement of the child if the child is determined to be eligible for special education and related services.

 (e) A parent may obtain an independent educational evaluation by choosing a person from a list provided by the district or by choosing a person by agreement between the parent and the school district, at the expense of the school district, if the parent disagrees with an evaluation obtained by the school district. The school district may initiate a hearing to show that its evaluation is appropriate. If the hearing officer determines that the evaluation is appropriate, the school district may not be required to pay for the independent educational evaluation.

 (f) If the parent obtains an independent educational evaluation at private expense, the results of the evaluation
     (1) must be considered by the school district in a decision made with respect to the provision of an appropriate public education to the child;

     (2) may be presented as evidence at a hearing regarding the child.

 (g) If a hearing officer requests an independent educational evaluation as part of a hearing, the school district shall pay for the evaluation.

 (h) A school district shall provide written notice of its decision under this section to the parent of the child. The notice must include a description of the procedural safeguards available to the parent and child under federal law.

 (i) In this section, “hearing” means a due process hearing under AS 14.30.193.




Sec. 14.30.193. Due process hearing.
 (a) A school district or a parent of a child with a disability may request a due process hearing on any issue related to identification, evaluation, or educational placement of the child, or the provision of a free, appropriate, public education to the child. A request is made by providing written notice to the other party to the hearing. A parent shall make a request for a due process hearing under this section not later than 12 months after the date that the school district provides the parent with written notice of the decision with which the parent disagrees. A school district shall make its request for a due process hearing in accordance with the time limit established by the department by regulation.

 (b) If a due process hearing is requested by either a school district or a parent, the school district shall contact the department to request appointment of a hearing officer. The department shall select a hearing officer through a random selection process, from a list maintained by the department under (g) of this section. Within five working days after receipt of the request, the department shall provide to the school district and the parent a notice of appointment, including the name and a statement of qualifications, of the hearing officer that the department determines is available to conduct the hearing.

 (c) The school district and the parent each have the right to reject, without stating a reason, one hearing officer appointed under this section. The rejecting party shall notify the department of that rejection in writing within five days after receipt of the department’s notice of appointment. If a hearing officer is rejected under this subsection, the department shall, within five working days after receipt of the written rejection, provide a notice of appointment, including the name and a statement of qualifications, of another hearing officer that the department determines is available to conduct the hearing. Each appointment is subject to a right of rejection under this subsection by a party who has not previously rejected an appointment.

 (d) After a hearing officer is appointed and the time for rejection under (c) of this section has expired, the hearing officer shall immediately inform the parent and the school district of the availability of the mediation process provided under AS 14.30.194 and encourage use of that process to attempt to resolve the disagreement between the parent and the school district. If the mediation process does not result in settlement of all of the issues, the hearing officer shall conduct a hearing in conformance with the requirements of federal law, including 34 C.F.R. 300.511 — 513. After the hearing is completed, the hearing officer shall issue a written decision that
     (1) upholds the school district’s decision; or

     (2) overturns the school district’s decision with specific instructions for modification of the identification, evaluation, educational placement, or provision of the education program by the district.

 (e) A hearing officer’s decision under this section is final and binding on the school district and parent unless appealed under (f) of this section. Notwithstanding a decision by the hearing officer, a child may not be evaluated, placed, transferred, or compelled to receive special education or related services from the school district until the period for filing an appeal under (f) of this section has expired or, if an appeal is filed, until the appellate review process has been completed.

 (f) A hearing officer’s decision under this section is a final administrative order, subject to appeal to the superior court for review in the manner provided under AS 44.62.560.

 (g) The department shall maintain a list of qualified hearing officers and shall provide for qualification of hearing officers through a training program that is open to all individuals who meet the criteria set by the department by regulation. The list of qualified hearing officers shall be maintained as a public record.

 (h) For purposes of this section, a student with a disability aged 18 — 21 has the same rights and obligations under this section as a parent of a child with a disability.




Sec. 14.30.194. Mediation.
 (a) The department shall, by regulation, establish and implement a voluntary mediation process in conformance with the requirements of federal law, including 34 C.F.R. 300.506. The department shall encourage the use of mediation for settlement of disputes under AS 14.30.180 — 14.30.350.

 (b) The department shall
     (1) maintain a list of individuals who are qualified mediators knowledgeable in the federal and state statutes and regulations relating to the provision of special education and related services; and

     (2) provide for qualification of mediators through a training program that is open to all individuals who meet the criteria set by the department by regulation.




Sec. 14.30.195. Hearings. [Repealed, § 41 ch 67 SLA 2001.]
Secs. 14.30.200 — 14.30.220. Eligibility; budget; forfeiture of right to reimbursement. [Repealed, § 5 ch 70 SLA 1963.]
Sec. 14.30.230. Special education. [Repealed, § 6 ch 144 SLA 1970.]
Sec. 14.30.231. Advisory panel.
The Governor’s Council on Disabilities and Special Education established under AS 47.80 shall serve as the state advisory panel, the function of which is to provide information and guidance for the development of appropriate programs of special education and related services for children with disabilities.


Sec. 14.30.235. Withdrawal of consent.
If under a provision of this chapter the consent of the parent is required, the parent may withdraw the parent’s consent.


Sec. 14.30.240. Supervisor. [Repealed, § 5 ch 70 SLA 1963.]
Sec. 14.30.250. Teacher qualifications.
A person may not be employed as a teacher of children with disabilities unless that person possesses a valid teacher certificate and, in addition, the training that the department requires by regulation.


Sec. 14.30.255. Administrator qualifications.
A person may not be employed as an administrator of a program of special education and related services unless that person possesses a valid administrative certificate and, in addition, such training as the department may require by regulation.


Sec. 14.30.260. Exception to qualifications. [Repealed, § 19 ch 147 SLA 1984.]
Sec. 14.30.270. Substitutes.
AS 14.30.250 does not prohibit the employment of a person, otherwise qualified to serve as a substitute teacher, to serve as a substitute teacher of children with disabilities.


Sec. 14.30.272. Procedural safeguards.
 (a) A school district shall inform the parent of a child with a disability of the right
     (1) to review the child’s educational record;

     (2) to review evaluation tests and procedures;

     (3) to refuse to permit evaluation or a change in the child’s educational placement;

     (4) to be informed of the results of evaluation;

     (5) to obtain an independent evaluation by choosing a person from a list provided by the school district or by choosing a person by agreement between the parent and school district;

     (6) to request a due process hearing;

     (7) to appeal a hearing officer’s decision; and

     (8) to give consent or deny access to others to the child’s educational record.

 (b) The department shall establish, by regulation, impartial procedures for a school district to follow for due process hearings to comply with requirements necessary to participate in federal grant-in-aid programs, including 20 U.S.C. 1400 — 1482 (Individuals with Disabilities Education Act).




Sec. 14.30.274. Identification of children with disabilities.
Each school district shall establish and implement written procedures to ensure that all children with disabilities under the age of 22 for whom the agency is responsible under AS 14.30.186 to provide special education and related services are identified and located for the purpose of establishing their need for special education and related services.


Sec. 14.30.276. Least restrictive environment.
Each school district shall ensure that, to the maximum extent appropriate, children with disabilities, including children in public or private institutions or other care facilities, are educated with children who are not children with disabilities and that special classes, separate schooling, or other removal of children with disabilities from the regular educational environment occurs only when the nature or severity of the child’s disability is such that education in regular classes with the use of supplementary aids and services cannot be achieved satisfactorily.


Sec. 14.30.278. Individualized education program; transition services.
 (a) A school district shall develop an individualized education program for special education and related services for each eligible child with a disability. The plan must be completed not later than 30 days after the determination of the child’s eligibility. Each individualized education program shall be developed and periodically reviewed and revised as necessary in conformance with federal requirements, including 34 C.F.R. 300.320 — 328.

 (b) When providing transition services as defined in 20 U.S.C. 1401(34) to a child with a disability who is over 15 years of age as part of a program of special education and related services under AS 14.30.180 — 14.30.350, a school district’s primary objective and preferred outcome is to help the child become gainfully employed in an integrated workplace where individuals with disabilities work with and alongside of individuals without disabilities, or become enrolled in postsecondary education.

 (c) In this section, “gainfully employed” means employed full time or part time within one year of leaving high school.




Sec. 14.30.280. Psychologist qualifications. [Repealed, § 19 ch 147 SLA 1984.]
Sec. 14.30.285. Transfers of children with disabilities.
 (a) The department shall institute a statewide program for the education of children with disabilities to ensure that whenever possible children are educated in the state at locations in or near their resident school district.

 (b) An identified child with a disability may be sent to an educational program or residential school outside the child’s community or school district if the child resides in a community or school district where an appropriate educational program cannot reasonably be made available and if the school district determines that provision of special education and related services in another educational program or residential school is appropriate. If the school district approves the enrollment of a child with a disability in another educational program or residential school outside the child’s community or school district and the child is enrolled, the child’s education expenses shall be paid as follows:
     (1) except as otherwise provided by (2) of this subsection, the sending district shall pay all costs associated with the transfer;

     (2) the department may provide financial assistance to the school district for a child’s education provided for in (1) of this subsection under regulations adopted by the department.

 (c) [Repealed, § 19 ch 147 SLA 1984.]
 (d) For the purposes of this section a child’s education expenses are limited to the actual cost of necessary care, transportation, and special education and related services, including room and board.

 (e) The educational assessment of a child with a disability that indicates that the educational program that is locally available is inappropriate for the needs of the child must conform to the standards set out in AS 14.30.191.

 (f) A school district shall obtain informed consent of the child’s parent before a child may be transferred to a school outside the district in which the child resides.

 (g) The withholding of informed consent by a parent for the transfer of a child with a disability under this section does not relieve a school district of the obligation to provide special education and related services to the child.




Sec. 14.30.290. Purposes of appropriations. [Repealed, § 5 ch 70 SLA 1963.]
Sec. 14.30.295. Special education outside state. [Repealed, § 4 ch 79 SLA 1974.]
Sec. 14.30.300. Nonresident apportionment. [Repealed, § 5 ch 70 SLA 1963.]
Sec. 14.30.305. State support of programs for children hospitalized or confined to their homes.
A child who is hospitalized or confined to home and who receives at least 10 hours of special education and related services per week may be counted as a pupil in average daily membership when computing state support under the public school funding program.


Sec. 14.30.310. Hospitalized and homebound children. [Repealed, § 5 ch 70 SLA 1963.]
Sec. 14.30.315. State support of programs for gifted children. [Repealed, § 39 ch 83 SLA 1998; § 41 ch 67 SLA 2001.]
Sec. 14.30.320. Reimbursement for hospitalized or homebound children. [Repealed, § 5 ch 70 SLA 1963.]
Sec. 14.30.325. Surrogate parents.
 (a) The department shall by regulation provide for the appointment of surrogate parents to represent a child with a disability in matters relating to the provision of an appropriate public education.

 (b) A surrogate parent is not liable for civil damages as a result of an act or omission committed in the surrogate parent’s official capacity, except that a surrogate parent may be liable for civil damages as a result of gross negligence or intentional misconduct.




Sec. 14.30.330. Application for enrollment. [Repealed, § 19 ch 147 SLA 1984.]
Sec. 14.30.335. Eligibility for federal funds.
Notwithstanding any other provision of AS 14.30.180 — 14.30.350, the department may do all things necessary to qualify for federal funds that are available to the state for the education of children with disabilities.


Sec. 14.30.340. Provision of special education in a private school, home, or hospital setting.
 (a) If a parent of a child with a disability enrolls the child in a private school, including a religious school, at the parent’s expense or teaches the child at home, the school district in which the child resides shall make special education and related services available in conformance with federal requirements, including 34 C.F.R. 300.130 — 148. A parent teaching the parent’s child at home may refuse special education and related services for the child.

 (b) If a physician certifies in writing, and if the child’s individualized education program under AS 14.30.278 provides that a child’s bodily, mental, or emotional condition does not permit attendance at a school and the child’s parents do not elect to teach the child at home as permitted under AS 14.30.010(b), the school district in which the child is located shall enroll the child in public school and provide the child with special education and related services in conformance with the child’s individualized education program at the child’s home or at a medical treatment facility.




Sec. 14.30.345. Regulations. [Repealed, § 59 ch 98 SLA 1966.]
Sec. 14.30.347. Transportation of children with disabilities.
When transportation is required to be provided as a related service, a child with a disability shall be transported with children who are not children with disabilities if the district provides transportation to children in the district, except when the nature of the physical or mental disability is such that it is in the best interest of the child with a disability, as provided in the child’s individualized education program, that the child be transported separately. State reimbursement for transportation of children with disabilities shall be as provided for transportation of all other pupils except that eligibility for reimbursement is not subject to restriction based on the minimum distance between the school and the residence of the child with a disability.


Sec. 14.30.350. Definitions.
In AS 14.30.180 — 14.30.350,
     (1) “appropriate education” means personalized instruction with sufficient support services to permit a child to benefit educationally from the instruction;

     (2) “child with a disability” means a child with one or more of the following:
          (A) intellectual disability;

          (B) learning disabilities;

          (C) emotional disturbance;

          (D) deafness;

          (E) deaf-blindness;

          (F) hearing impairment;

          (G) orthopedic impairment;

          (H) other health impairment;

          (I) speech or language impairment;

          (J) visual impairment;

          (K) multiple disabilities;

          (L) early childhood development delay;

          (M) autism;

          (N) traumatic brain injury;

          (O) developmental disability;

     (3) “due process hearing” means a hearing conducted under AS 14.30.193;

     (4) “educational records” means those files, documents, records, and other material that contain information directly related to a student and are maintained by a school district or a person acting for a school district; the term “educational records” does not include the personnel records of the school district, maintained in the normal course of business, that relate exclusively to a person’s capacity as an employee, or other records as designated by the department in regulation;

     (5) “informed consent” means that
          (A) a child’s parent has been fully informed, in the parent’s native language or other mode of communication, of all information relevant to the activity for which consent is sought;

          (B) the parent understands and agrees in writing to the carrying out of the activity for which the parent’s consent is sought;

          (C) the consent describes that activity and lists any records that will be released and to whom; and

          (D) the parent understands that the granting of consent is voluntary on the part of the parent and may be revoked at any time;

     (6) “parent” means a
          (A) child’s natural or adoptive parent;

          (B) child’s guardian, but not the state if the child is in the legal custody of the state;

          (C) person who is acting in the place of a child’s natural or adoptive parent, such as a grandparent or stepparent with whom the child lives, or a person who is legally responsible for the child’s welfare; and

          (D) child’s surrogate parent who has been appointed under AS 14.30.325;

     (7) “related services” means services described in 34 C.F.R. 300.34;

     (8) “school district” means a borough school district, a city school district, a regional educational attendance area, a state boarding school, and the state centralized correspondence study program;

     (9) “special education” means an educational program described in 34 C.F.R. 300.39.




Article 6. Education for Gifted Children.


Sec. 14.30.352. Programs for gifted children.
 (a) Every school district shall establish educational services for gifted children that provide for student identification, student eligibility, student learning plans, and parental and student participation, including an appropriate review process, consistent with regulations adopted by the department.

 (b) State reimbursement for transportation of gifted children shall be as provided for transportation of all other pupils, except that eligibility for reimbursement is not limited to transportation between the child’s residence and the school, but shall also include transportation between a school and another location of instruction as routinely required by the gifted education program of the district.




Article 7 Sexual Abuse and Sexual Assault Awareness and Prevention


Sec. 14.30.355. Sexual abuse and sexual assault awareness and prevention .
 (a) The governing body of each school district shall adopt and implement a policy, establish a training program for employees and students, and provide parent notices relating to sexual abuse and sexual assault awareness and prevention for students enrolled in grades kindergarten through 12.

 (b) The policy, training, and notices adopted under this section must include
     (1) age-appropriate information;

     (2) warning signs of sexual abuse of a child;

     (3) referral and resource information;

     (4) available student counseling and educational support;

     (5) methods for increasing teacher, student, and parent awareness of issues regarding sexual abuse of children;

     (6) actions that a child may take to prevent and report sexual abuse or sexual assault; and

     (7) a procedure allowing a student to be excused from participating in training or from receiving notices under this section at the written request of a parent or guardian of the student, or of the student if the student is emancipated or 18 years of age or older.

 (c) The training required for teachers under this section may be provided as a part of the continuing education required under AS 18.66.310.

 (d) In this section,
     (1) “school district” has the meaning given in AS 14.30.350;

     (2) “sexual abuse” or “sexual assault” has the meaning given to “sexual abuse” in AS 47.10.990.




Sec. 14.30.356. Dating violence and abuse policy, training, awareness, prevention, and notices.
 (a) The governing body of each school district shall adopt and implement a policy, establish a training program for employees and students, and provide parent notices relating to dating violence and abuse in grades seven through 12. A training program adopted under this section must emphasize prevention and awareness.

 (b) The policy, training, notices, and instruction adopted under this section must include
     (1) age-appropriate information;

     (2) the warning signs of dating violence and abusive behavior;

     (3) characteristics of healthy relationships;

     (4) measures to prevent and stop dating violence and abuse;

     (5) community resources available to victims of dating violence and abuse; and

     (6) a procedure allowing a student to be excused from participating in training or from receiving notices under this section at the written request of a parent or guardian of the student, or of the student if the student is emancipated or 18 years of age or older.

 (c) The training required for teachers under this section may be provided as a part of the continuing education required under AS 18.66.310.

 (d) In this section,
     (1) “dating violence and abuse” means a pattern of behavior in which one person threatens to use, or actually uses, physical, sexual, verbal, emotional, or psychological abuse to control the person’s dating partner;

     (2) “school district” has the meaning given in AS 14.30.350.




Article 8. Health, Safety, and Physical Education.


Sec. 14.30.360. Health education curriculum; physical activity guidelines.
 (a) Each district in the state public school system shall be encouraged to initiate and conduct a program in health education for kindergarten through grade 12. The program should include instruction in physical health and personal safety including alcohol and drug abuse education, cardiopulmonary resuscitation (CPR), early cancer prevention and detection, dental health, family health including infant care, environmental health, the identification and prevention of child abuse, child abduction, neglect, sexual abuse, and domestic violence, and appropriate use of health services.

 (b) The state board shall establish guidelines for a health and personal safety education program. Personal safety guidelines shall be developed in consultation with the Council on Domestic Violence and Sexual Assault. Upon request, the Department of Education and Early Development, the Department of Health and Social Services, and the Council on Domestic Violence and Sexual Assault shall provide technical assistance to school districts in the development of personal safety curricula. A school health education specialist position shall be established and funded in the department to coordinate the program statewide. Adequate funds to enable curriculum and resource development, adequate consultation to school districts, and a program of teacher training in health and personal safety education shall be provided.

 (c) In addition to the health education program encouraged under (a) of this section, a school district shall establish guidelines for schools in the district to provide opportunities during each full school day for students in grades kindergarten through eight for a minimum of 90 percent of the daily amount of physical activity recommended for children and adolescents in the physical activity guidelines by the Centers for Disease Control and Prevention, United States Department of Health and Human Services. The time provided for physical activity under this subsection may include physical education classes and opportunities for unstructured physical activity, such as recess. A school district shall adopt guidelines under this subsection that
     (1) allow a student to be excused from the physical activity opportunities if the student is unable to participate for a medical reason; and

     (2) provide an exemption from the physical activity opportunities under this subsection for health and safety reasons, such as inclement weather.

 (d) In this section, “district” has the meaning given in AS 14.17.990.




Sec. 14.30.361. Sex education, human reproductive education, and human sexuality education.
 (a) A person may only teach a class or program in sex education, human reproduction education, or human sexuality education if the person
     (1) possesses a valid teacher certificate issued under AS 14.20 and is employed under a contract with the school; or

     (2) is supervised by a person who meets the requirements under (1) of this subsection.

 (b) Before curriculum, literature, or materials related to sex education, human reproduction education, or human sexuality education may be used in a class or program or distributed in a school, the curriculum, literature, or materials must be
     (1) approved by the school board; and

     (2) available for parents to review.

 (c) Before a person teaches a class or program under (a)(2) of this section,
     (1) the person must be approved by the school board; and

     (2) the person’s credentials must be available for parents to review.

 (d) The requirements under (a) of this section do not apply to
     (1) sexual abuse and sexual assault awareness and prevention training required under AS 14.30.355; or

     (2) dating violence and abuse awareness and prevention training required under AS 14.30.356.




Sec. 14.30.362. Suicide awareness and prevention training.
 (a) A school district and the department shall provide youth suicide awareness and prevention training approved by the commissioner to each teacher, administrator, counselor, and specialist who is employed by the district or department to provide services to students in a public school in the state at no cost to the teacher, administrator, counselor, or specialist.

 (b) The commissioner shall approve youth suicide awareness and prevention training provided under this section if the training meets standards for professional continuing education credit in the state and is periodically reviewed by a qualified person or committee for consistency with generally accepted principles of youth suicide awareness and prevention. The training may be offered through videoconferencing or an individual program of study of designated materials.

 (c) A person may not bring a civil action for damages against the state or a school district, or an officer, agent, or employee of the state or a school district, for a death, personal injury, or property damage that results from an act or omission in performing or failing to perform activities or duties authorized under this section. This subsection does not apply to a civil action for damages as a result of intentional misconduct with complete disregard for the safety and property of others.

 (d) The training under this section shall be provided according to the schedule adopted by the governing body of a school district.

 (e) The training provided or the failure to provide training under this section may not be construed to impose a specific duty of care on any person.




Sec. 14.30.365. Interscholastic activities; eligibility.
 (a) A full-time student who is eligible under (b) of this section who is enrolled in grades nine through 12 in an alternative education program that is located in the state and that does not offer interscholastic activities is eligible to participate in any interscholastic activities program available in a public school
     (1) that, based on the residence of the parent or legal guardian, the student would be eligible to attend were the student not enrolled in an alternative education program; or

     (2) at which the student requests to participate, if
          (A) the student shows good cause; and

          (B) the governing body of the school approves.

 (b) A student is eligible to participate in interscholastic activities under this section if the student
     (1) is otherwise eligible to participate in interscholastic activities under requirements established by the school, the school district, and the statewide interscholastic activities governing body;

     (2) provides documentation, including academic transcripts, proof of full-time enrollment, and applicable disciplinary records, and, if required for participation in an activity by the school, requested medical records, to the school providing the interscholastic activities program; and

     (3) claims the same school for interscholastic activities eligibility purposes during a school year.

 (c) In this section,
     (1) “alternative education program” means a public secondary school that provides a nontraditional education program, including the Alaska Military Youth Academy; a public vocational, remedial, or theme-based program; a home school program that is accredited by a recognized accrediting body; a charter school authorized under AS 14.03.250 — 14.03.290; and a statewide correspondence school that enrolls students who reside outside of the district in which the student resides and provides less than three hours a week of scheduled face-to-face student interactions in the same location with a teacher who is certified under AS 14.20.020;

     (2) “district” has the meaning given in AS 14.17.990;

     (3) “full-time student” means a student who
          (A) is enrolled in not less than five classes in grades nine through 11 and not less than four classes in grade 12; and

          (B) is on track to graduate from secondary school in not more than four years of attendance in secondary school;

     (4) “interscholastic activities” means preparation for and participation in events or competitions involving another school when the preparation or participation
          (A) is sanctioned or supported by the statewide interscholastic activities governing body;

          (B) is conducted outside of the regular school curriculum; and

          (C) does not involve participation in student government at a school;

     (5) “located in the state” means that the alternative education program is accessed by a student who is located in the state and provides for all instructional hours to take place at a site in the state.




Sec. 14.30.370. Evaluation.
Health education programs conducted under AS 14.30.360 shall be evaluated by the department in the same manner as other curriculum programs are evaluated, except that the evaluation shall also include changes in the health status of the pupils as determined by physical and dental examinations conducted under AS 14.30.070.


Sec. 14.30.375. School gardens, greenhouses, and farms. [Repealed, § 5 ch 11 SLA 2010.]

Article 9. Environmental Education.


Sec. 14.30.380. Environmental education.
The board shall encourage each school board to initiate and conduct a program of environmental education for kindergarten through grade 12. The program should include, but is not limited to, education regarding the need to balance resource development with environmental safeguards, the dependence of the state on resource development, and the opportunity for pollution prevention, waste reduction, and recycling. A school board may implement environmental education as a part of regular classroom studies.


Article 10. Bilingual-Bicultural Education.


Sec. 14.30.400. Bilingual-bicultural education.
City or borough district school boards and regional educational attendance area boards shall provide a bilingual-bicultural education program for each school in a city or borough school district or regional educational attendance area that is attended by at least eight pupils of limited English-speaking ability and whose primary language is other than English. A bilingual-bicultural education program shall be provided under a plan of service that has been developed in accordance with regulations adopted by the department. Nothing in this section precludes a bilingual-bicultural education program from being provided for less than eight pupils in a school.


Sec. 14.30.410. Bilingual-bicultural education funds.
 (a) [Repealed, § 12 ch 42 SLA 1997.]
 (b) The department shall adopt regulations for the determination of entitlement and the distribution of bilingual-bicultural funds to city and borough school districts and regional educational attendance areas.




Sec. 14.30.420. Native language education.
 (a) A school board shall establish a local Native language curriculum advisory board for each school in the district in which a majority of the students are Alaska Natives and any school district with Alaska Native students may establish a local Native language curriculum advisory board for each school with Alaska Native students in their district. If the local Native language curriculum advisory board recommends the establishment of a Native language education curriculum for a school, the school board may initiate and conduct a Native language education curriculum within grades K through 12 at that school. The program, if established, must include Native languages traditionally spoken in the community in which the school is located. Each school board conducting a program of Native language education shall implement the program as a part of regular classroom studies and shall use
     (1) instructors who are certified under AS 14.20.020 or 14.20.025; and

     (2) to the maximum extent possible
          (A) instructors and instructional materials available through the University of Alaska; and

          (B) audio-visual, computer, and satellite technology.

 (b) In this section,
     (1) “district” has the meaning given in AS 14.17.990;

     (2) “Native” means a person of one-fourth degree or more Alaskan Indian, Eskimo, or Aleut blood.




Article 11. Adventure-Based Education.


Sec. 14.30.500. Adventure-based education program.
An adventure-based education program is a program designed to bring adventure-based education to high school students and appropriate juvenile offenders. A program shall include provisions for the following phases:
     (1) Phase I: Basic Skills Learning
          (A) physical conditioning: running, hiking, swimming, and other related activities;

          (B) technical training: the use of specialized tools and equipment, camping, cooking, map reading, navigation, life saving, drown proofing, and solo survival;

          (C) safety training: first aid skills, emergency care, preventive medicine, nutrition, health, and personal hygiene care;

          (D) team training: rescue techniques, evacuation exercises, and fire fighting;

          (E) solo: solitary living for a short period with minimal equipment;

          (F) interpersonal skills training: coping skills, individual and group problem solving, and societal communication skills;

          (G) culturally relevant activities: traditional modes of subsistence living, traveling and surviving in wilderness areas and communities in Alaska, and cross-cultural experiences.

     (2) Phase II: Skills Generalization
          (A) vocational counseling and placement;

          (B) family and interpersonal counseling;

          (C) community systems utilization:
               (i) transportation,

               (ii) community services systems,

               (iii) community problem solving.




Sec. 14.30.510. Alaska student leadership development fund. [Repealed, § 12 ch 42 SLA 1997.]

Article 12. Special Education Service Agency.


Sec. 14.30.600. Agency established.
There is established, as a public organization, the special education service agency.


Sec. 14.30.610. Governing board.
The agency shall be governed by the Governor’s Council on Disabilities and Special Education (AS 47.80.030).


Sec. 14.30.620. Employees.
Employees of the agency are not in the state service and are not subject to AS 39.25 (State Personnel Act). However, employees of the agency shall be members of either the Teachers’ Retirement System (AS 14.25) or the Public Employees’ Retirement System (AS 39.35).


Sec. 14.30.630. Powers and duties.
 (a) The agency may
     (1) receive and expend public and private funds to carry out the purposes of the agency;

     (2) contract with the department and other public or private agencies for the provision of special education or related services;

     (3) do whatever is necessary to carry out the purposes of AS 14.30.600 — 14.30.660.

 (b) The agency shall
     (1) provide special education services including
          (A) itinerant outreach services to students who are deaf, deaf-blind, intellectually disabled, developmentally disabled, hearing impaired, blind and visually impaired, orthopedically disabled, health-impaired in other ways, and severely emotionally disturbed, and to students with multiple disabilities;

          (B) special education instructional support and training of local school district special education personnel; and

          (C) other services appropriate to special education needs;

     (2) provide for an annual audit of the agency;

     (3) provide the department with a two-year plan of operation including a description of the services to be offered by the agency, the method by which the services will be evaluated, information on the number of students and school district personnel to be served, a schedule of funds available to the agency from all sources, and other information that may be required by the department by regulation;

     (4) present an annual budget to the department.




Sec. 14.30.640. Eligibility for service.
The services of the agency shall be available to school districts that serve children whose special education needs occur infrequently, who require specialized services not normally available in the school district, and who cannot be easily served by local school district personnel because of the low number of students in the district in need of the particular service. The agency may provide services to a child with a disability, as that term is defined in AS 14.30.350.


Sec. 14.30.650. Funding.
Each fiscal year, the department shall allocate to the agency not less than $18.65 times the number of students in the state in average daily membership in the preceding fiscal year as determined under AS 14.17.600. Money to carry out the provisions of this section may be appropriated annually by the legislature. If amounts are insufficient to meet the allocation authorized under this section for a fiscal year, the allocation shall be reduced pro rata.


Sec. 14.30.660. Definition.
In AS 14.30.600 — 14.30.660, unless the context otherwise requires, “agency” means the special education service agency.


Article 13. Records of Certain Missing or Transferred Children.


Sec. 14.30.700. Records of missing children.
Upon notification by the Department of Public Safety of a child’s disappearance, a school or school district in which the child is currently or was previously enrolled shall flag the school record of that child in a manner that, when a copy or information regarding the record is requested, the school or school district shall be alerted to the fact that the record is that of a missing child. The school or school district shall immediately report to the Department of Public Safety a request regarding flagged records, including any knowledge as to the whereabouts of the child. Upon notification by the Department of Public Safety that the person who was listed as a missing child has been found, the school or school district shall remove the flag from the person’s record.


Sec. 14.30.710. Required records upon transfer.
Within 14 days after enrolling a child as a transfer student from this or another state in an elementary or secondary school, the school or school district shall request directly from the child’s previous school a certified copy of the child’s record. An elementary or secondary school or a school district in this state requested to forward a copy of a transferring child’s record to another school shall comply with the request within 10 days after receiving the request unless the record has been flagged under AS 14.30.700. Upon receipt of a request for a record that has been flagged, the school or school district shall immediately notify the Department of Public Safety. Unless directed to do so by the Department of Public Safety, a school or a school district may not forward a copy of a flagged record. In this section, “record” includes information about the child’s commission of an offense that is punishable as a felony or that involved the use of a deadly weapon, as that term is defined in AS 11.81.900(b).


Sec. 14.30.720. Definitions.
In AS 14.30.700 — 14.30.720,
     (1) “child” means a person under 18 years of age;

     (2) “school district” means a municipal school district or a regional educational attendance area.




Article 14. Alaska Military Youth Academy.


Sec. 14.30.740. Funding for Alaska Challenge Youth Academy program. [Repealed, § 3 ch 72 SLA 2013.]
Sec. 14.30.745. Provision of student information to academy.
 (a) Except as provided in (b) of this section, on or before January 15 and July 15 of each year, a school district shall provide to the director of the Alaska Military Youth Academy, operated by the Department of Military and Veterans’ Affairs for the purpose of educating and training youth, a biannual report containing the name, last known address, and dates of attendance of a student who
     (1) is at least 15 years of age but less than 19 years of age;

     (2) was enrolled but is no longer enrolled in a school in the district;

     (3) has not provided school transfer or graduation information to a school in the district; and

     (4) has not received a high school diploma or general educational development certificate.

 (b) At the beginning of each school year, a school district shall provide a written notice to the parent or guardian of the student, or, if the student is at least 18 years of age, to the student, of the disclosure of the information under (a) of this section and provide an opportunity for objection to the disclosure.

 (c) The official to whom the information in (a) of this section is provided shall certify in writing to the school district providing the information that the information will not be disclosed to any other party except as necessary to recruit and retain students.

 (d) In this section, “district” has the meaning given in AS 14.17.990.




Sec. 14.30.750. Alaska school counseling program grant fund. [Repealed, § 12 ch 42 SLA 1997.]

Article 1. School Safety Patrols.


Chapter 33. School Safety and Discipline.

Sec. 14.33.010. Requirements for school safety patrols.
The school board of a borough or city school district or regional educational attendance area, or a private or denominational school may require that school safety patrols be established to assist pupils to cross streets and highways adjacent to schools in safety.


Sec. 14.33.020. Organization of a patrol.
 (a) If a school board, or a private or denominational school determines that a safety patrol should be established for a school, the principal of the school shall appoint pupils in the school to serve as members of the patrol.

 (b) A pupil may not be appointed a patrol member unless the pupil’s parents or guardian give written consent to the pupil’s membership in the patrol.

 (c) The principal shall designate a teacher or teachers in the school to supervise the operation of the patrol.

 (d) The principal shall consult with the local law enforcement authority to determine those locations adjacent to the school where the patrol may be most advantageously used.




Sec. 14.33.030. Duties of a patrol.
 (a) Patrol members shall
     (1) encourage pupils to refrain from crossing streets and highways at other than regular crossings;

     (2) direct pupils not to cross streets and highways when the presence of traffic renders crossing unsafe;

     (3) when directed, assist pupils to safely board or leave school buses.

 (b) A patrol member may not, under any circumstances, be permitted to direct vehicular traffic or be stationed in a street or highway while performing the duties of a patrol member.




Sec. 14.33.040. Guidance for patrols.
The commissioner shall, after consulting with the commissioner of public safety, adopt standards to guide patrol members in the conduct of their duties, and shall specify appropriate insignia to be worn by patrol members while on duty.


Sec. 14.33.050. Cooperation with law-enforcement authorities.
The state troopers or the police department of a political subdivision of the state may, upon request by the department, a school board, or a private or denominational school, assist in the training and control of safety patrols.


Sec. 14.33.060. Immunity from liability.
The state or a political subdivision of it, a school board or any individual member of it, a private or denominational school, principal, teacher, patrol member, or parent or guardian of a patrol member is immune from liability that might otherwise be incurred as a result of an injury caused by an act or the failure to act on the part of a patrol member while on duty.


Article 2. Required School Crisis Response Planning.


Sec. 14.33.100. Required school crisis response planning.
 (a) Each district shall develop a model school crisis response plan for use by each school in the district. Each school in a district shall develop a school specific crisis response plan. Each school shall form a crisis response team consisting of the principal, one certified and one classified member of the school staff, and one parent whose child attends the school. The crisis response team may include one member of the governing board or advisory school board, a school counselor, a member from local law enforcement authorities, and one student in grade 10 or higher if the school has those grades. The district and each school within the district shall consult with local social services agencies and local law enforcement authorities when developing the school crisis response plan.

 (b) A school specific crisis response plan must meet standards as determined by the department by regulation. A school specific crisis response plan must include
     (1) the person in charge and a designated substitute;

     (2) the names of the crisis response team members and their specific job functions relating to a crisis;

     (3) a communication plan;

     (4) protocols for responding to immediate physical harm of students, faculty, or staff and to traumatic events, including the period after the events have concluded;

     (5) disaster and emergency procedures to respond to earthquakes, fire, flood, explosions, or other events or conditions in which death or serious injury is likely;

     (6) crisis procedures for safe entrance to and exit from the school by students, parents, and employees, including an evacuation and lockdown plan; and

     (7) policies for enforcing school discipline and maintaining a safe and orderly environment during the crisis.

 (c) Each district shall annually review and update as appropriate each school’s crisis response plan. A copy of each school’s crisis response plan, as annually updated, shall be retained by the district and a copy provided to each local agency that has a role in the plan. Notice of completion of the annual review and update and the location of a school’s crisis response plan shall be posted at each school in the district. A school crisis response plan shall be printed and available for inspection by the public.

 (d) Each district shall provide to each district employee training in crisis response, including evacuation and lockdown drills. New district employees who have not previously received the training required under this subsection shall receive the required training within two years after the first day of employment and, thereafter, according to the schedule adopted by the governing body of a school district.

 (e) In this section,
     (1) “crisis” includes a traumatic event or emergency condition that creates distress, hardship, fear, or grief;

     (2) “district” has the meaning given in AS 14.17.990.




Article 3. Required School Disciplinary and Safety Program.


Sec. 14.33.110. Purpose of school disciplinary and safety program.
The purpose of AS 14.33.110 — 14.33.140 is to
     (1) implement and maintain community-based standards of school behavior that are developed by students, parents, teachers, school administrators, and the community;

     (2) facilitate the creation of a standard of school behavior and safety by local communities for the schools in those communities;

     (3) protect and support teachers who enforce standards of student behavior and safety in the classroom established under AS 14.33.120; and

     (4) ensure that all schools and school districts receiving state funds, that may not have already done so, implement and maintain an effective school disciplinary and safety program.




Sec. 14.33.120. School disciplinary and safety program.
 (a) Each governing body shall adopt a written school disciplinary and safety program. The program required under this subsection must be made available to students, parents, legal guardians, and the public and include written
     (1) standards for student behavior and safety that reflect community standards and that include, at a minimum, basic requirements for respect and honesty; standards required under this paragraph must be developed and periodically reviewed with the collaboration of members of each school, parents, legal guardians, teachers, and other persons responsible for the students at a school; a governing body may require that standards developed under this paragraph be consistent for all schools in an attendance area or the district;

     (2) standards relating to when a teacher is authorized to remove a student from the classroom for
          (A) failure to follow student behavior and safety standards; or

          (B) behavior described under AS 14.30.045(1) or (2);

     (3) procedures for notifying teachers of dangerous students consistent with AS 47.12.310(b);

     (4) standards relating to when a teacher, teacher’s assistant, or other person responsible for students is authorized to use reasonable and appropriate force to maintain classroom safety and discipline as described under AS 11.81.430(a)(2);

     (5) policies necessary to comply with provisions of state and federal law, including 20 U.S.C. 1400 — 1482 (Individuals with Disabilities Education Act);

     (6) standards to address needs of students for whom mental health or substance abuse may be a contributing factor to noncompliance with the school disciplinary and safety program;

     (7) policies for implementing a student conflict resolution strategy, including the nonviolent resolution or mediation of conflicts and procedures for reporting and resolving conflicts;

     (8) procedures for periodic review and revision of the school disciplinary and safety program;

     (9) policies and procedures consistent with standards for use of restraint and seclusion of students as described in AS 14.33.125.

 (b) A school shall, on the same day as the incident, provide to the parent or legal guardian of an affected student information relating to an incident involving disruptive or violent behavior by the student that resulted in restraint or seclusion of the student by school personnel.




Sec. 14.33.125. Student restraint or seclusion; limitations.
 (a) A public school disciplinary and safety program must
     (1) prohibit restraint or seclusion of a student except as provided in (b) of this section;

     (2) be annually reviewed with school personnel;

     (3) include a written report of each incident that is maintained in the student’s record as described in (d) of this section; and

     (4) include a review of each incident in which restraint or seclusion is used as provided in (e) of this section.

 (b) A teacher, teacher’s assistant, or other person responsible for students may physically restrain or seclude a student only if
     (1) the student’s behavior poses an imminent danger of physical injury to the student or another person;

     (2) less restrictive interventions would be ineffective to stop the imminent danger to the student or another person;

     (3) the person continuously monitors the student in face-to-face contact or, if face-to-face contact is unsafe, by continuous direct visual contact with the student;

     (4) the person has received training in crisis intervention and de-escalation and restraint techniques that has been approved by the department under AS 14.33.127, unless a trained person is not immediately available and the circumstances are rare and present an unavoidable and unforeseen emergency; and

     (5) the restraint or seclusion is discontinued immediately when the student no longer poses an imminent danger of physical injury to the student or another person or when a less restrictive intervention is effective to stop the danger of physical injury.

 (c) A teacher, teacher’s assistant, or other person responsible for students may not
     (1) use chemical restraint;

     (2) use mechanical restraint; or

     (3) physically restrain a student by placing the student on the student’s back or stomach or in a manner that restricts the student’s breathing.

 (d) School personnel who restrain or seclude a student shall provide a written report of the incident to the school administrator. A school shall provide a copy of the report to the student’s parents or legal guardians. The report must include
     (1) the date and time of the incident;

     (2) the names and job titles of school personnel who participated in or supervised the incident;

     (3) a description of the activity that preceded the incident, including efforts and strategies used with the student before the incident;

     (4) a description of the incident, including the type and duration of the intervention used;

     (5) a description of how the incident ended, including any further action taken.

 (e) A school district shall ensure that a review process is established and conducted for each incident that involves restraint or seclusion of a student. The review must be conducted as soon as practicable after the event and include
     (1) staff review of the incident;

     (2) follow-up communication with the student and the student’s parent or legal guardian;

     (3) review of and recommendations for adjusting or amending procedures, strategies, accommodations, individualized education plans, or other student behavior plans, or for additional staff training.

 (f) Each school district shall annually report to the department, on a form acceptable to the department, the total number of incidents involving the restraint or seclusion of a student. The report must specify
     (1) the number of incidents that resulted in injury or death of students or personnel;

     (2) the number of incidents in which school personnel involved in the restraint or seclusion were not trained in an approved crisis intervention training program as described in AS 14.33.127(b); and

     (3) the number of incidents involving the restraint or seclusion of a child with a disability under AS 14.30.350; the report must also include the category of the disability of the child involved in each incident.

 (g) In this section,
     (1) “chemical restraint” means a psychopharmacologic drug that is used on a student for discipline or convenience and that is not required to treat a medical symptom;

     (2) “mechanical restraint” means the use of a device that is not a medical device or protective equipment prescribed by a qualified health care professional to restrict a student’s freedom of movement;

     (3) “physically restrain” or “physical restraint” means a personal restriction that immobilizes or reduces the ability of a student to move the student’s arms, legs, or head freely;

     (4) “restraint” means physical restraint, chemical restraint, mechanical restraint, or other aversive behavioral interventions that compromise health and safety;

     (5) “seclusion” means the involuntary confinement of a student alone in a room or area that the student is physically prevented from leaving; “seclusion” does not include a classroom time-out, supervised detention, or suspension from school under AS 14.30.045.




Sec. 14.33.127. Crisis intervention training.
 (a) The department shall approve crisis intervention training programs for schools, which shall include training in
     (1) evidence-based techniques that have been shown to be effective in the prevention of restraint and seclusion of students;

     (2) evidence-based techniques shown to be effective in keeping school personnel and students safe when imposing physical restraint or seclusion of students;

     (3) evidence-based skills related to positive behavior supports, conflict prevention, understanding antecedents, de-escalation, and conflict management;

     (4) first aid and cardiopulmonary resuscitation; and

     (5) applicable policies and procedures.

 (b) The governing body of a school shall ensure that a sufficient number of school employees receives periodic training in an approved crisis intervention program to meet the needs of the school population.

 (c) In this section,
     (1) “restraint” has the meaning given in AS 14.33.125;

     (2) “seclusion” has the meaning given in AS 14.33.125.




Sec. 14.33.130. Enforcement of approved program; additional safety obligations.
 (a) A teacher, a teacher’s assistant, a principal, or another person responsible for students may not be terminated or otherwise subjected to formal disciplinary action for lawful enforcement of an approved school disciplinary and safety program, including behavior standards, adopted under AS 14.33.120.

 (b) A teacher, a teacher’s assistant, a principal, or another person responsible for students who
     (1) receives information about a student under AS 47.12.310(b) or receives information that may affect the safety of students or staff shall notify the student’s teacher or a school administrator; and

     (2) in the course of employment, observes a student committing a crime shall report the crime to the local law enforcement agency; in this paragraph, “crime” has the meaning given in AS 11.81.900.




Sec. 14.33.140. Civil liability for enforcing disciplinary and safety program.
A teacher, a teacher’s assistant, a principal, or another person responsible for students is not liable for civil damage resulting from an act or omission (1) arising out of enforcement of an approved school disciplinary and safety program adopted under AS 14.33.120; and (2) arising out of and in the course of employment unless the act or omission constitutes gross negligence or reckless or intentional misconduct.


Article 4. Harassment, Intimidation, and Bullying.


Sec. 14.33.200. Harassment, intimidation, and bullying policy.
 (a) By July 1, 2007, each school district shall adopt a policy that prohibits the harassment, intimidation, or bullying of any student. Each school district shall share this policy with parents or guardians, students, volunteers, and school employees.

 (b) The policy must be adopted through the standard policy-making procedure for each district that includes the opportunity for participation by parents or guardians, school employees, volunteers, students, administrators, and community representatives. The policy must emphasize positive character traits and values, including the importance of civil and respectful speech and conduct, and the responsibility of students to comply with the district’s policy prohibiting harassment, intimidation, or bullying. The policy must also include provisions for an appropriate punishment schedule up to and including expulsion and reporting of criminal activity to local law enforcement authorities. School employees, volunteers, students, and administrators shall adhere to this policy.

 (c) By January 1, 2007, the department, in consultation with representatives of parents or guardians, school personnel, and other interested parties, may provide to school districts a model harassment, intimidation, and bullying prevention policy and training materials on the components that should be included in a district policy. Training materials may be disseminated in a variety of ways, including workshops and other staff developmental activities, and through the Internet website of the department. Materials included on the Internet website must include the model policy and recommended training and instructional materials. The department may provide a link to the school district’s Internet website for further information.




Sec. 14.33.210. Reporting of incidents of harassment, intimidation, or bullying.
Beginning with the 2007 — 2008 school year, each school district shall report to the department by November 30 all incidents resulting in suspension or expulsion for harassment, intimidation, or bullying on school premises or on transportation systems used by schools in the school year preceding the report. The department shall compile the data and report it to the appropriate committees of the Alaska House of Representatives and the Senate.


Sec. 14.33.220. Reporting; no reprisals.
 (a) A school employee, student, or volunteer may not engage in reprisal, retaliation, or false accusation against a victim, witness, or person with reliable information about an act of harassment, intimidation, or bullying.

 (b) A school employee, student, or volunteer who has witnessed, or has reliable information that a student has been subjected to, harassment, intimidation, or bullying, whether verbal or physical, shall report the incident to an appropriate school official.

 (c) This section does not prohibit discipline or other adverse action taken in compliance with school district policies against a person who falsely and in bad faith accuses a person of engaging in harassment, intimidation, or bullying or who intentionally provides false information in connection with an investigation of an alleged incident of harassment, intimidation, or bullying.




Sec. 14.33.230. Immunity from suit.
A school employee, student, or volunteer who reports an incident of harassment, intimidation, or bullying to a school official and who makes this report in good faith is immune from a cause of action for damages arising from a failure to remedy the reported incident or for making the report.


Sec. 14.33.250. Definitions.
In AS 14.33.200 — 14.33.250,
     (1) “district” has the meaning given in AS 14.17.990;

     (2) “harassment, intimidation, or bullying” means an intentional written, oral, or physical act, when the act is undertaken with the intent of threatening, intimidating, harassing, or frightening the student, and
          (A) physically harms the student or damages the student’s property;

          (B) has the effect of substantially interfering with the student’s education;

          (C) is so severe, persistent, or pervasive that it creates an intimidating or threatening educational environment; or

          (D) has the effect of substantially disrupting the orderly operation of the school;

     (3) “school official” means an employee of a school, including a teacher, administrator, or noncertificated support staff or paraprofessional.




Chapter 34. Interstate Compact on Educational Opportunity for Military Children.

Sec. 14.34.010. Compact enacted.
The Interstate Compact on Educational Opportunity for Military Children as contained in this section is enacted into law and entered into on behalf of the state with all other states and jurisdictions legally joining in it in a form substantially as follows:

INTERSTATE COMPACT ON EDUCATIONAL OPPORTUNITY FOR MILITARY CHILDREN ARTICLE I PURPOSE It is the purpose of this compact to remove barriers to educational success imposed on children of military families because of frequent moves and deployment of their parents by
     (1) facilitating the timely enrollment of children of military families and ensuring that they are not placed at a disadvantage due to difficulty in the transfer of education records from one or more previous school districts or variations in entrance and age requirements;

     (2) facilitating the student placement process through which children of military families are not disadvantaged by variations in attendance requirements, scheduling, sequencing, grading, course content, or assessment;

     (3) facilitating the qualification and eligibility for enrollment, educational programs, and participation in extracurricular academic, athletic, and social activities;

     (4) facilitating the on-time graduation of children of military families;

     (5) providing for the promulgation and enforcement of administrative rules implementing the provisions of this compact;

     (6) providing for the uniform collection and sharing of information between and among member states, schools, and military families under this compact;

     (7) promoting coordination between this compact and other compacts affecting military children; and

     (8) promoting flexibility and cooperation between the educational system, parents, and the student in order to achieve educational success for the student.

ARTICLE II DEFINITIONS As used in this compact, unless the context clearly requires a different construction,
     (1) “active duty” means full-time duty status in the active uniformed service of the United States, including members of the National Guard and Reserve on active duty orders under 10 U.S.C. 1209 and 1211;

     (2) “children of military families” means one or more school-aged children, enrolled in kindergarten through 12th grade, in the household of an active duty member;

     (3) “compact commissioner” means the voting representative of each compacting state appointed under art. VIII of this compact;

     (4) “deployment” means the period one month before the service member’s departure from the member’s home station on military orders through six months after return to the member’s home station;

     (5) “education records or educational records” means those official records, files, and data directly related to a student and maintained by the school or local education agency, including but not limited to records encompassing all the material kept in the student’s cumulative folder such as general identifying data, records of attendance and of academic work completed, records of achievement and results of evaluative tests, health data, disciplinary status, test protocols, and individualized education programs;

     (6) “extracurricular activities”
          (A) means a voluntary activity sponsored by the school or local education agency or an organization sanctioned by the local education agency;

          (B) include, but are not limited to, preparation for and involvement in public performances, contests, athletic competitions, demonstrations, displays, and club activities;

     (7) “Interstate Commission on Educational Opportunity for Military Children” means the commission that is created under art. IX of this compact, which is generally referred to as Interstate Commission;

     (8) “local education agency” means a public authority legally constituted by the state as an administrative agency to provide control of and direction for kindergarten through 12th grade public educational institutions;

     (9) “member state” means a state that has enacted this compact;

     (10) “military installation”
          (A) means a base, camp, post, station, yard, center, homeport facility for any ship, or other activity under the jurisdiction of the Department of Defense, including any leased facility, which is located within any of the several States, District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, American Samoa, the Northern Marianas Islands and any other United States Territory;

          (B) does not include any facility used primarily for civil works, rivers and harbors projects, or flood control projects;

     (11) “non-member state” means a state that has not enacted this compact;

     (12) “receiving state” means the state to which a child of a military family is sent, brought, or caused to be sent or brought;

     (13) “rule”
          (A) means a written statement by the Interstate Commission promulgated under art. XII of this compact that is of general applicability, implements, interprets, or prescribes a policy or provision of the Compact, or an organizational, procedural, or practice requirement of the Interstate Commission, and has the force and effect of statutory law in a member state;

          (B) includes the amendment, repeal, or suspension of an existing rule;

     (14) “sending state” means the state from which a child of a military family is sent, brought, or caused to be sent or brought;

     (15) “state” means a state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, American Samoa, the Northern Marianas Islands, and any other United States Territory;

     (16) “student” means the child of a military family for whom the local education agency receives public funding and who is formally enrolled in kindergarten through 12th grade;

     (17) “transition”
          (A) means the formal and physical process of transferring from school to school;

          (B) the period of time in which a student moves from one school in the sending state to another school in the receiving state;

     (18) “uniformed service” means the Army, Navy, Air Force, Marine Corps, Coast Guard as well as the Commissioned Corps of the National Oceanic and Atmospheric Administration, and Public Health Services;

     (19) “veteran” means a person who served in the uniformed services and who was discharged or released from the uniformed services under conditions other than dishonorable.

ARTICLE III APPLICABILITY  (a) Except as otherwise provided in sec. (b) of this article, this compact shall apply to the children of
     (1) active duty members of the uniformed services as defined in this compact, including members of the National Guard and Reserve on active duty orders under 10 U.S.C. 1209 and 1211;

     (2) members or veterans of the uniformed services who are severely injured and medically discharged or retired for a period of one year after medical discharge or retirement; and

     (3) members of the uniformed services who die on active duty or as a result of injuries sustained on active duty for a period of one year after death.

 (b) The provisions of this interstate compact shall only apply to local education agencies as defined in this compact.

 (c) The provisions of this compact shall not apply to the children of
     (1) inactive members of the national guard and military reserves;

     (2) members of the uniformed services now retired, except as provided in sec. (a) of this article;

     (3) veterans of the uniformed services, except as provided in sec. (a) of this article; and

     (4) other United States Department of Defense personnel and other federal agency civilian and contract employees not defined as active duty members of the uniformed services.

ARTICLE IV EDUCATIONAL RECORDS AND ENROLLMENT  (a) Unofficial hand-carried education records. In the event that official education records cannot be released to the parents for the purpose of transfer, the custodian of the records in the sending state shall prepare and furnish to the parent a complete set of unofficial educational records containing uniform information as determined by the Interstate Commission. Upon receipt of the unofficial education records by a school in the receiving state, the school shall enroll and appropriately place the student based on the information provided in the unofficial records pending validation by the official records, as quickly as possible.

 (b) Official education records and transcripts. Simultaneous with the enrollment and conditional placement of the student, the school in the receiving state shall request the student’s official education record from the school in the sending state. Upon receipt of this request, the school in the sending state will process and furnish the official education records to the school in the receiving state within 10 days or within such time as is reasonably determined under the rules promulgated by the Interstate Commission.

 (c) Immunizations. Compacting states shall give 30 days from the date of enrollment or within such time as is reasonable determined under the rules promulgated by the Interstate Commission, for students to obtain one or more immunizations required by the receiving state. For a series of immunizations, initial vaccinations must be obtained within 30 days or within such time as is reasonably determined under the rules promulgated by the Interstate Commission.

 (d) Kindergarten and first grade entrance age. Students shall be allowed to continue their enrollment at grade level in the receiving state commensurate with their grade level, including kindergarten, from a local education agency in the sending state at the time of transition, regardless of age. A student that has satisfactorily completed the prerequisite grade level in the local education agency in the sending state shall be eligible for enrollment in the next highest grade level in the receiving state, regardless of age. A student transferring after the start of the school year in the receiving state shall enter the school in the receiving state on their validated level from an accredited school in the sending state.

ARTICLE V PLACEMENT AND ATTENDANCE  (a) Course placement
     (1) when the student transfers before or during the school year, the receiving state school shall initially honor placement of the student in educational courses based on the student’s enrollment in the sending state school or educational assessments or both conducted at the school in the sending state if the courses are offered; course placement includes but is not limited to
          (A) honors;

          (B) international baccalaureate;

          (C) advanced placement; and

          (D) vocational, technical, and career pathways courses;

     (2) continuing the student’s academic program from the previous school and promoting placement in academically and career challenging courses should be paramount when considering placement; this does not preclude the school in the receiving state from performing subsequent evaluations to ensure appropriate placement and continued enrollment of the student in one or more courses.

 (b) Educational program placement
     (1) the receiving state school shall initially honor placement of the student in educational programs based on current educational assessments conducted at the school in the sending state or participation and placement in like programs in the sending state; these programs include, but are not limited to
          (A) gifted and talented programs; and

          (B) English as a second language;

     (2) this does not preclude the school in the receiving state from performing subsequent evaluations to ensure appropriate placement of the student.

 (c) Special education services
     (1) in compliance with the federal requirements of the Individuals with Disabilities Education Act, 20 U.S.C.A. 1400 et seq., the receiving state shall initially provide comparable services to a student with disabilities based on the student’s current Individualized Education Program; and

     (2) in compliance with the requirements of Section 504 of the Rehabilitation Act, 29 U.S.C.A. 794, and with Title II of the Americans with Disabilities Act, 42 U.S.C.A. 12131 — 12165, the receiving state shall make reasonable accommodations and modifications to address the needs of incoming students with disabilities, subject to an existing Section 504 of the Rehabilitation Act or Title II of the Americans with Disabilities Act plan, to provide the student with equal access to education; this does not preclude the school in the receiving state from performing subsequent evaluations to ensure appropriate placement of the student.

 (d) Placement flexibility. Local education agency administrative officials shall have flexibility in waiving course and program prerequisites, or other preconditions for placement in courses and programs offered under the jurisdiction of the local education agency.

 (e) Absence as related to deployment activities. A student whose parent or legal guardian is an active duty member of the uniformed services, as defined by the compact, and has been called to duty for, is on leave from, or immediately returned from deployment to a combat zone or combat support posting, shall be granted additional excused absences at the discretion of the local education agency superintendent to visit with the student’s parent or legal guardian relative to leave or deployment of the parent or guardian.

ARTICLE VI ELIGIBILITY  (a) Eligibility for enrollment
     (1) special power of attorney, relative to the guardianship of a child of a military family and executed under applicable law shall be sufficient for the purposes of enrollment and all other actions requiring parental participation and consent;

     (2) a local education agency shall be prohibited from charging local tuition to a transitioning military child placed in the care of a non-custodial parent or other person standing in loco parentis who lives in a jurisdiction other than that of the custodial parent; and

     (3) a transitioning military child, placed in the care of a non-custodial parent or other person standing in loco parentis who lives in a jurisdiction other than that of the custodial parent, may continue to attend the school in which the student was enrolled while residing with the custodial parent.

 (b) Eligibility for extracurricular participation. State and local education agencies shall facilitate the opportunity for transitioning military children’s inclusion in extracurricular activities, regardless of application deadlines, to the extent they are otherwise qualified.

ARTICLE VII GRADUATION In order to facilitate the on-time graduation of children of military families states and local education agencies shall incorporate the following procedures:
     (1) Waiver requirements. Local education agency administrative officials shall waive specific courses required for graduation if similar course work has been satisfactorily completed in another local education agency or shall provide reasonable justification for denial; should a waiver not be granted to a student who would qualify to graduate from the sending school, the local education agency shall provide an alternative means of acquiring required coursework so that graduation may occur on time;

     (2) Exit exams. States shall accept
          (A) exit or end-of-course exams required for graduation from the sending state;

          (B) national norm-referenced achievement tests; or

          (C) alternative testing, in lieu of testing requirements for graduation in the receiving state.

     (3) Other means. If the alternatives described in art. VII, secs. (1) and (2) cannot be accommodated by the receiving state for a student transferring in the student’s senior year, then the provisions of art. VII, sec. (4) shall apply;

     (4) Transfers during senior year. Should a military student transferring at the beginning or during the student’s senior year be ineligible to graduate from the receiving local education agency after all alternatives have been considered, the sending and receiving local education agencies shall ensure the receipt of a diploma from the sending local education agency, if the student meets the graduation requirements of the sending local education agency; if one of the states in question is not a member of this compact, the member state shall use best efforts to facilitate the on-time graduation of the student in accordance with art. VII, secs. (1) and (2).

ARTICLE VIII STATE COORDINATION  (a) Each member state shall, through the creation of a State Council or use of an existing body or board, provide for the coordination among its agencies of government, local education agencies, and military installations concerning the state’s participation in, and compliance with, this compact and Interstate Commission activities. While each member state may determine the membership of its own State Council, its membership must include at least
     (1) the state superintendent of education;

     (2) the superintendent of a school district with a high concentration of military children;

     (3) a representative from a military installation;

     (4) one representative each from the legislative and executive branches of government; and

     (5) a representative from other offices and stakeholder groups that the State Council considers appropriate.

 (b) A member state that does not have a school district considered to contain a high concentration of military children may appoint a superintendent from another school district to represent local education agencies on the State Council.

 (c) The State Council of each member state shall appoint or designate a military family education liaison to assist military families and the state in facilitating the implementation of this compact.

 (d) The compact commissioner responsible for the administration and management of the state’s participation in the compact shall be appointed by the governor or as otherwise determined by each member state.

 (e) The compact commissioner and the military family education liaison designated under the compact shall be ex-officio members of the State Council, unless either is already a full voting member of the State Council.

ARTICLE IX. INTERSTATE COMMISSION ON EDUCATIONAL OPPORTUNITY FOR MILITARY CHILDREN The member states create the Interstate Commission on Educational Opportunity for Military Children. The activities of the Interstate Commission are the formation of public policy and are a discretionary state function. The Interstate Commission shall
     (1) be a body corporate and joint agency of the member states and shall have all the responsibilities, powers, and duties set out in this compact, and additional powers as may be conferred upon it by a subsequent concurrent action of the respective legislatures of the member states in accordance with the terms of this compact;

     (2) consist of one Interstate Commission voting representative from each member state who shall be that state’s compact commissioner;
          (A) each member state represented at a meeting of the Interstate Commission is entitled to one vote;

          (B) a majority of the total member states shall constitute a quorum for the transaction of business, unless a larger quorum is required by the bylaws of the Interstate Commission;

          (C) a representative may not delegate a vote to another member state; if the compact commissioner is unable to attend a meeting of the Interstate Commission, the governor or State Council may delegate voting authority to another person from their state for a specified meeting;

          (D) the bylaws may provide for meetings of the Interstate Commission to be conducted by telecommunication or electronic communication;

     (3) consist of ex-officio, non-voting representatives who are members of interested organizations; the ex-officio members, as defined in the bylaws, may include but not be limited to
          (A) members of the representative organizations of military family advocates;

          (B) local education agency officials;

          (C) parent and teacher groups;

          (D) the United States Department of Defense;

          (E) the Education Commission of the States;

          (F) the Interstate Agreement on the Qualification of Educational Personnel and other interstate compacts affecting the education of children of military members;

     (4) meet at least once each calendar year; the chairperson may call additional meetings and, upon the request of a simple majority of the member states, shall call additional meetings;

     (5) establish an executive committee, whose members shall include the officers of the Interstate Commission and the other members of the Interstate Commission as determined by the bylaws; members of the executive committee shall serve a one year term; members of the executive committee shall be entitled to one vote each; the executive committee shall have the power to act on behalf of the Interstate Commission, with the exception of rulemaking, during periods when the Interstate Commission is not in session; the executive committee shall oversee the day-to-day activities of the administration of the compact including enforcement and compliance with the provisions of the compact, its bylaws and rules, and other duties as considered necessary; the United States Department of Defense shall serve as an ex-officio, nonvoting member of the executive committee;

     (6) establish bylaws and rules that provide for conditions and procedures under which the Interstate Commission shall make its information and official records available to the public for inspection or copying; the Interstate Commission may exempt from disclosure information or official records to the extent they would adversely affect personal privacy rights or proprietary interests;

     (7) give public notice of all meetings and all meetings shall be open to the public, except as set out in the rules or as otherwise provided in the compact; the Interstate Commission and its committees may close a meeting, or portion of an open meeting, if it determines by two-thirds vote that an open meeting would be likely to
          (A) relate solely to the Interstate Commission’s internal personnel practices and procedures;

          (B) disclose matters specifically exempted from disclosure by federal and state statute;

          (C) disclose trade secrets or commercial or financial information which is privileged or confidential;

          (D) involve accusing a person of a crime, or formally censuring a person;

          (E) disclose information of a personal nature where disclosure would constitute a clearly unwarranted invasion of personal privacy;

          (F) disclose investigative records compiled for law enforcement purposes; or

          (G) specifically relate to the Interstate Commission’s participation in a civil action or other legal proceeding;

     (8) cause its legal counsel or designee to certify that a meeting may be closed and shall reference each relevant exemptible provision for any meeting, or portion of a meeting, which is closed under this provision; the Interstate Commission shall keep minutes, which shall fully and clearly describe all matters discussed in a meeting and shall provide a full and accurate summary of actions taken, and the reasons therefore, including a description of the views expressed and the record of a roll call vote; all documents considered in connection with an action shall be identified in such minutes; all minutes and documents of a closed meeting shall remain under seal, subject to release by a majority vote of the Interstate Commission;

     (9) collect standardized data concerning the educational transition of the children of military families under this compact as directed through its rules which shall specify the data to be collected, the means of collection and data exchange and reporting requirements; such methods of data collection, exchange, and reporting shall, in so far as is reasonably possible, conform to current technology and coordinate its information functions with the appropriate custodian of records as identified in the bylaws and rules; and

     (10) create a process that permits military officials, education officials, and parents to inform the Interstate Commission if and when there are alleged violations of the compact or its rules or when issues subject to the jurisdiction of the compact or its rules are not addressed by the state or local education agency; this section shall not be construed to create a private right of action against the Interstate Commission or any member state.

ARTICLE X POWERS AND DUTIES OF THE INTERSTATE COMMISSION The Interstate Commission shall have the following powers:
     (1) to provide for dispute resolution among member states;

     (2) to promulgate rules and take all necessary actions to effect the goals, purposes, and obligations as enumerated in this compact; the rules shall have the force and effect of statutory law and shall be binding in the compact states to the extent and in the manner provided in this compact;

     (3) to issue, upon request of a member state, advisory opinions concerning the meaning or interpretation of the interstate compact, its bylaws, rules, and actions;

     (4) to enforce compliance with the compact provisions, the rules, promulgated by the Interstate Commission, and the bylaws, using all necessary and proper means, including but not limited to the use of judicial process;

     (5) to establish and maintain offices which shall be located within one or more of the member states;

     (6) to purchase and maintain insurance and bonds;

     (7) to borrow, accept, hire, or contract for services of personnel;

     (8) to establish and appoint committees including, but not limited to, an executive committee as required by art. IX, sec. 5, which shall have the power to act on behalf of the Interstate Commission in carrying out its powers and duties under the compact;

     (9) to elect or appoint such officers, attorneys, employees, agents, or consultants, and to fix their compensation, define their duties, and determine their qualifications; and to establish the Interstate Commission’s personnel policies and programs relating to conflicts of interest, rates of compensation, and qualifications of personnel;

     (10) to accept any and all donations and grants of money, equipment, supplies, materials, and services, and to receive, utilize, and dispose of it;

     (11) to lease, purchase, accept contributions or donations of, or otherwise to own, hold, improve, or use any property, real, personal, or mixed;

     (12) to sell, convey, mortgage, pledge, lease, exchange, abandon, or otherwise dispose of any property, real, personal, or mixed;

     (13) to establish a budget and make expenditures;

     (14) to adopt a seal and bylaws governing the management and operation of the Interstate Commission;

     (15) to report annually to the legislatures, governors, judiciary, and state councils of the member states concerning the activities of the Interstate Commission during the preceding year; the reports shall also include any recommendations that may have been adopted by the Interstate Commission;

     (16) to coordinate education, training, and public awareness regarding the compact, its implementation and operation for officials and parents involved in the activity;

     (17) to establish uniform standards for the reporting, collecting, and exchanging of data;

     (18) to maintain corporate books and records in accordance with the bylaws;

     (19) to perform such functions as may be necessary or appropriate to achieve the purposes of this compact; and

     (20) to provide for the uniform collection and sharing of information between and among member states, schools, and military families under this compact.

ARTICLE XI ORGANIZATION AND OPERATION OF THE INTERSTATE COMMISSION  (a) The Interstate Commission shall, by a majority of the members present and voting, within 12 months after the first Interstate Commission meeting, adopt bylaws to govern its conduct as may be necessary or appropriate to carry out the purposes of the compact, including, but not limited to
     (1) establishing the fiscal year of the Interstate Commission;

     (2) establishing an executive committee, and other committees as may be necessary;

     (3) providing for the establishment of committees and for governing any general or specific delegation of authority or function of the Interstate Commission;

     (4) providing reasonable procedures for calling and conducting meetings of the Interstate Commission, and ensuring reasonable notice of each meeting;

     (5) establishing the titles and responsibilities of the officers and staff of the Interstate Commission;

     (6) providing a mechanism for concluding the operations of the Interstate Commission and the return of surplus funds that may exist upon the termination of the compact after the payment and reserving of all its debts and obligations; and

     (7) providing start-up rules for initial administration of the compact.

 (b) The Interstate Commission shall, by a majority of the members, elect annually from among its members a chairperson, a vice-chairperson, and a treasurer, each of whom shall have such authority and duties as may be specified in the bylaws. The chairperson or, in the chairperson’s absence or disability, the vice-chairperson, shall preside at all meetings of the Interstate Commission. The officers shall serve without compensation or remuneration from the Interstate Commission; if, subject to the availability of budgeted funds, the officers are reimbursed for ordinary and necessary costs and expenses incurred by them in the performance of their responsibilities as officers of the Interstate Commission.

 (c) Executive Committee, Officers, and Personnel
     (1) the executive committee shall have such authority and duties as may be set out in the bylaws, including, but not limited to
          (A) managing the affairs of the Interstate Commission in a manner consistent with the bylaws and purposes of the Interstate Commission;

          (B) overseeing an organizational structure within, and appropriate procedures for the Interstate Commission to provide for the creation of rules, operating procedures, and administrative and technical support functions; and

          (C) planning, implementing, and coordinating communications and activities with other state, federal, and local government organizations in order to advance the goals of the Interstate Commission;

     (2) the executive committee may, subject to the approval of the Interstate Commission, appoint or retain an executive director for the period, upon the terms and conditions and for such compensation, as the Interstate Commission may consider appropriate; the executive director shall serve as secretary to the Interstate Commission, but shall not be a member of the Interstate Commission; the executive director shall hire and supervise other persons as may be authorized by the Interstate Commission.

 (d) The Interstate Commission’s executive director and its employees shall be immune from suit and liability, either personally or in their official capacity, for a claim for damage to or loss of property or personal injury or other civil liberty caused or arising out of or relating to an actual or alleged act, error, or omission that occurred, or that such person had a reasonable basis for believing occurred, within the scope of Interstate Commission employment, duties or responsibilities; if, that person is not protected from suit or liability for damage, loss, injury, or liability caused by the intentional or willful and wanton misconduct of the person. The following standards apply:
     (1) the liability of the Interstate Commission’s executive director and employees or Interstate Commission representatives, acting within the scope of the person’s employment or duties for acts, errors, or omissions occurring within the person’s state may not exceed the limits of liability set out under the Constitution and laws of that state for state officials, employees, and agents; the Interstate Commission is considered to be an instrumentality of the states for the purposes of any such action; nothing in this subsection shall be construed to protect such person from suit or liability for damage, loss, injury, or liability caused by the intentional or willful and wanton misconduct on the part of such person;

     (2) the Interstate Commission shall defend the executive director and its employees and, subject to the approval of the attorney general or other appropriate legal counsel of the member state represented by an Interstate Commission representative, shall defend such Interstate Commission representative in any civil action seeking to impose liability arising out of an actual or alleged act, error, or omission that occurred within the scope of Interstate Commission employment, duties or responsibilities, or that the defendant had a reasonable basis for believing occurred within the scope of Interstate Commission employment, duties, or responsibilities, if the actual or alleged act, error, or omission did not result from intentional or willful and wanton misconduct on the part of such person;

     (3) to the extent not covered by the state involved, member state, or the Interstate Commission, the representatives or employees of the Interstate Commission shall be held harmless in the amount of a settlement or judgment, including attorney’s fees and costs, obtained against such persons arising out of an actual or alleged act, error, or omission that occurred within the scope of Interstate Commission employment, duties, or responsibilities, or that the persons had a reasonable basis for believing occurred within the scope of Interstate Commission employment, duties, or responsibilities, provided that the actual or alleged act, error, or omission did not result from intentional or willful and wanton misconduct on the part of such persons.

ARTICLE XII RULEMAKING FUNCTIONS OF THE INTERSTATE COMMISSION  (a) Rulemaking authority. The Interstate Commission shall promulgate reasonable rules in order to effectively and efficiently achieve the purposes of this compact. Notwithstanding the provisions of this subsection, if the Interstate Commission exercises its rulemaking authority in a manner that is beyond the scope of the purposes of this Act, or the powers granted hereunder, then such an action by the Interstate Commission shall be invalid and have no force or effect.

 (b) Rulemaking procedure. Rules shall be made under a rulemaking process that substantially conforms to the “Model State Administrative Procedure Act,” of 1981 Act, Uniform Laws Annotated, Vol. 15, p. 1 (2000) as amended, as may be appropriate to the operations of the Interstate Commission.

 (c) Not later than 30 days after a rule is promulgated, any person may file a petition for judicial review of the rule; if, that the filing of such a petition shall not stay or otherwise prevent the rule from becoming effective unless the court finds that the petitioner has a substantial likelihood of success. The court shall give deference to the actions of the Interstate Commission consistent with applicable law and shall not find the rule to be unlawful if the rule represents a reasonable exercise of the Interstate Commission’s authority.

 (d) If a majority of the legislatures of the compacting states rejects a rule by enactment of a statute or resolution in the same manner used to adopt the compact, then the rule shall have no further force and effect in any compacting state.

ARTICLE XIII OVERSIGHT, ENFORCEMENT, AND DISPUTE RESOLUTION  (a) Oversight
     (1) the executive, legislative, and judicial branches of state government in each member state shall enforce this compact and shall take all actions necessary and appropriate to effectuate the compact’s purposes and intent; the provisions of this compact and the rules promulgated hereunder shall have standing as statutory law;

     (2) all courts shall take judicial notice of the compact and the rules in any judicial or administrative proceeding in a member state pertaining to the subject matter of this compact which may affect the powers, responsibilities, or actions of the Interstate Commission;

     (3) the Interstate Commission shall be entitled to receive all service of process in any such proceeding, and shall have standing to intervene in the proceeding for all purposes; failure to provide service of process to the Interstate Commission shall render a judgment or order void as to the Interstate Commission, this compact, or promulgated rules;

 (b) Default, technical assistance, suspension, and termination. If the Interstate Commission determines that a member state has defaulted in the performance of its obligations or responsibilities under this compact, or the bylaws or promulgated rules, the Interstate Commission shall
     (1) provide written notice to the defaulting state and other member states, of the nature of the default, the means of curing the default and any action taken by the Interstate Commission; the Interstate Commission shall specify the conditions by which the defaulting state must cure its default;

     (2) provide remedial training and specific technical assistance regarding the default;

     (3) if the defaulting state fails to cure the default, the defaulting state shall be terminated from the compact upon an affirmative vote of a majority of the member states and all rights, privileges, and benefits conferred by this compact shall be terminated from the effective date of termination; a cure of the default does not relieve the offending state of obligations or liabilities incurred during the period of default;

     (4) suspension or termination of membership in the compact shall be imposed only after all other means of securing compliance have been exhausted; notice of intent to suspend or terminate shall be given by the Interstate Commission to the governor, the majority and minority leaders of the defaulting state’s legislature, and each of the member states;

     (5) the state that has been suspended or terminated is responsible for all assessments, obligations, and liabilities incurred through the effective date of suspension or termination including obligations, the performance of which extends beyond the effective date of suspension or termination;

     (6) the Interstate Commission does not bear any costs relating to any state that has been found to be in default or which has been suspended or terminated from the compact, unless otherwise mutually agreed upon in writing between the Interstate Commission and the defaulting state;

     (7) the defaulting state may appeal the action of the Interstate Commission by petitioning the United States District Court for the District of Columbia or the federal district where the Interstate Commission has its principal offices; the prevailing party shall be awarded all costs of such litigation including reasonable attorney’s fees.

 (c) Dispute resolution
     (1) the Interstate Commission shall attempt, upon the request of a member state, to resolve disputes which are subject to the compact and which may arise among member states and between member and non-member states;

     (2) the Interstate Commission shall promulgate a rule providing for both mediation and binding dispute resolution for disputes as appropriate.

 (d) Enforcement
     (1) the Interstate Commission, in the reasonable exercise of its discretion, shall enforce the provisions and rules of this compact;

     (2) the Interstate Commission, may by majority vote of the members, initiate legal action in the United State District Court for the District of Columbia or, at the discretion of the Interstate Commission, in the federal district where the Interstate Commission has its principal offices, to enforce compliance with the provisions of the compact, its promulgated rules and bylaws, against a member state in default; the relief sought may include both injunctive relief and damages. If judicial enforcement is necessary the prevailing party shall be awarded all costs of such litigation including reasonable attorney’s fees;

     (3) the remedies in this compact are not the exclusive remedies of the Interstate Commission; the Interstate Commission may avail itself of any other remedies available under state law or the regulation of a profession.

ARTICLE XIV FINANCING OF THE INTERSTATE COMMISSION  (a) The Interstate Commission shall pay, or provide for the payment of the reasonable expenses of its establishment, organization, and ongoing activities.

 (b) The Interstate Commission may levy on and collect an annual assessment from each member state to cover the cost of the operations and activities of the Interstate Commission and its staff which must be in a total amount sufficient to cover the Interstate Commission’s annual budget as approved each year. The aggregate annual assessment amount shall be allocated based upon a formula to be determined by the Interstate Commission, which shall promulgate a rule binding upon all member states.

 (c) The Interstate Commission may not incur obligations of any kind before securing the funds adequate to meet the same; nor shall the Interstate Commission pledge the credit of any of the member states, except by and with the authority of the member state.

 (d) The Interstate Commission shall keep accurate accounts of all receipts and disbursements. The receipts and disbursements of the Interstate Commission shall be subject to the audit and accounting procedures established under its bylaws. However, all receipts and disbursements of funds handled by the Interstate Commission shall be audited yearly by a certified or licensed public accountant and the report of the audit shall be included in and become part of the annual report of the Interstate Commission.

ARTICLE XV MEMBER STATES, EFFECTIVE DATE, AND AMENDMENT  (a) A state is eligible to become a member state.

 (b) The compact shall become effective and binding upon legislative enactment of the compact into law by no less than 10 of the states. The effective date shall be no earlier than December 1, 2007; thereafter it shall become effective and binding as to any other member state upon enactment of the compact into law by that state. The governors of non-member states or their designees shall be invited to participate in the activities of the Interstate Commission on a non-voting basis prior to adoption of the compact by all states.

 (c) The Interstate Commission may propose amendments to the compact for enactment by the member states. No amendment shall become effective and binding upon the Interstate Commission and the member states unless and until it is enacted into law by unanimous consent of the member states.

ARTICLE XVI WITHDRAWAL AND DISSOLUTION  (a) Withdrawal
     (1) once effective, the compact shall continue in force and remain binding upon each and every member state; provided that a member state may withdraw from the compact by specifically repealing the statute, which enacted the compact into law;

     (2) withdrawal from this compact shall be by the enactment of a statute repealing the same, but shall not take effect until one year after the effective date of the statute and until written notice of the withdrawal has been given by the withdrawing state to the governor of each other member jurisdiction;

     (3) the withdrawing state shall immediately notify the chairperson of the Interstate Commission in writing upon the introduction of legislation repealing this compact in the withdrawing state; the Interstate Commission shall notify the other member states of the withdrawing state’s intent to withdraw within 60 days of its receipt of the intent to withdraw;

     (4) the withdrawing state is responsible for all assessments, obligations, and liabilities incurred through the effective date of withdrawal, including obligations, the performance of which extend beyond the effective date of withdrawal;

     (5) reinstatement following withdrawal of a member state shall occur upon the withdrawing state reenacting the compact or upon such later date as determined by the Interstate Commission.

 (b) Dissolution of compact
     (1) this compact shall dissolve effective upon the date of the withdrawal or default of the member state which reduces the membership in the compact to one member state;

     (2) upon the dissolution of this compact, the compact becomes null and void and shall be of no further force or effect, and the business and affairs of the Interstate Commission shall be concluded and surplus funds shall be distributed in accordance with the bylaws.

ARTICLE XVII SEVERABILITY AND CONSTRUCTION  (a) The provisions of this compact shall be severable, and if any phrase, clause, sentence, or provision is deemed unenforceable, the remaining provisions of the compact shall be enforceable.

 (b) The provisions of this compact shall be liberally construed to effectuate its purposes.

 (c) Nothing in this compact shall be construed to prohibit the applicability of other interstate compacts to which the states are members.

ARTICLE XVIII BINDING EFFECT OF COMPACT AND OTHER LAWS  (a) Other laws
     (1) Nothing herein prevents the enforcement of any other law of a member state that is not inconsistent with this compact;

     (2) All member states’ laws conflicting with this compact are superseded to the extent of the conflict;

 (b) Binding effect of the compact
     (1) All lawful actions of the Interstate Commission, including all rules and bylaws promulgated by the Interstate Commission, are binding upon the member states;

     (2) All agreements between the Interstate Commission and the member states are binding in accordance with their terms;

     (3) If any provision of this compact exceeds the constitutional limits imposed on the legislature of any member state, the provision shall be ineffective to the extent of the conflict with the constitutional provision in question in that member state.




Sec. 14.34.020. Compact administrator.
Under the compact established under AS 14.34.010, the commissioner may designate an officer as the compact administrator. The compact administrator shall cooperate with all departments, agencies, and officers of and in the government of this state and its subdivisions in facilitating the proper administration of the compact or of a supplementary agreement entered into by this state.


Sec. 14.34.030. State council.
The board shall designate a subcommittee of its membership to serve as the state council under AS 14.34.010. Consistent with state law, the board shall designate other persons to serve on the subcommittee to complete the representation required by the compact established under AS 14.34.010.


Sec. 14.34.040. Regulations.
The board may adopt regulations to implement this chapter.


Sec. 14.34.090. Short title.
This chapter may be cited as the Interstate Compact on Educational Opportunity for Military Children.


Chapter 35. Vocational Education.

Sec. 14.35.010. Acceptance of Act of Congress for vocational education.
The State of Alaska accepts together with the benefits of all respective funds appropriated thereunder, all of the provisions of the Act of Congress approved February 23, 1917, Public Law 347, 64th Congress, entitled: “An Act to provide for the promotion of vocational education; to provide for cooperation with the states in the promotion of such education in agriculture, home economics and trades and industries; to provide for the cooperation of the states in the preparation of teachers of vocational subjects; and to appropriate money and regulate its expenditures,” and Acts amending or supplementing it.


Sec. 14.35.020. Duties of state Board of Education and Early Development.
 (a) The state Board of Education and Early Development serves as the state board for the purposes of any of the Acts described in AS 14.35.010.

 (b) When required by any of the Acts described in AS 14.35.010, the board shall
     (1) prepare, submit, and supervise the administration of the plans for vocational education;

     (2) select a state director of vocational education;

     (3) establish the minimum qualifications for teachers, supervisors, or directors;

     (4) determine the prorated basis on which money shall be available for the salary and necessary travel expenses of the state director of vocational education;

     (5) consider the advice of the Alaska Workforce Investment Board established by AS 23.15.550 regarding employment training needs and advise that board in the development of vocational education programs.

 (c) Nothing in this section shall be construed to repeal or modify any existing statute.




Sec. 14.35.025. Duties of the Department of Education and Early Development.
When required by any of the Acts described in AS 14.35.010, the department shall
     (1) cooperate with the appropriate federal agency in the administration of the Act;

     (2) do everything necessary to entitle the state to receive money available according to the Act;

     (3) represent the state in all matters related to the administration of the Act;

     (4) expend and disburse money received according to the Act;

     (5) designate the districts, schools, departments, or classes to participate in the benefits of money received according to the Act.




Sec. 14.35.030. Commissioner of administration as custodian of federal funds.
The commissioner of administration is designated custodian of appropriations made under any of the Acts described in AS 14.35.010. The commissioner of administration shall receive and provide for the proper custody and disbursement of all money paid to the state according to any of the Acts.


Sec. 14.35.040. Payment of expenses of administration. [Repealed, § 59 ch 98 SLA 1966.]

Chapter 36. Community Schools.

[Repealed, § 2, ch. 99, SLA 2003.]

Chapter 37. Licensure of Child Care Facilities.

[Repealed, E.O. No. 108 § 88 (2003). For current law, see AS 47.32.]

Chapter 38. Head Start.

Sec. 14.38.010. Operation of Head Start programs.
The Department of Education and Early Development shall operate the head start funding program governed by 42 U.S.C. 9835.


Secs. 14.38.100 — 14.38.199. Day Care Assistance and Child Care Grants. [Repealed, E.O. No. 108, § 88 (2003). For current law, see AS 47.25.001 — 47.25.095.]

Article 1. Establishment, Organization, and Programs of the University of Alaska.


Chapter 40. The University of Alaska and the Community Colleges.

Sec. 14.40.010. University of Alaska.
The University of Alaska consists of the College of Agriculture, the School of Mines, the Department of Agricultural Experiment Station, the Department of Agricultural Extension Work, and other colleges and departments that may be established, including departments of anthropology, archaeology, ethnology, museum, natural history, and palaeontology.


Sec. 14.40.020. Site of university.
The University of Alaska is the beneficiary under the provisions of the Act of Congress approved August 30, 1890, designating the Alaska Agricultural College and School of Mines as beneficiary and the four sections of land specified by the Act of Congress approved March 4, 1915, and used as a site for the Alaska Agricultural College and School of Mines are the site for the University of Alaska.


Sec. 14.40.030. Transfer of powers, duties, and obligations of Agricultural College and School of Mines under Acts of Congress.
All powers, duties, and obligations devolving upon the Alaska Agricultural College and School of Mines in connection with or by reason of Acts of Congress, past or future, in relation to agricultural colleges and agricultural or mining experiment stations, extension work in agriculture, and instruction and extension work in the mechanic arts granted to and imposed upon the Alaska Agricultural College and School of Mines are granted and conveyed to and imposed upon the University of Alaska, and beginning with the first day of July, 1935, the University of Alaska is designated to receive all money, appropriations, and grants to the state for the purposes set forth in this chapter. The comptroller of the University of Alaska is designated and appointed to receive directly and to disburse all funds that the state is entitled to receive under the Act of Congress of May 8, 1914 (38 Stat. 372), as amended by the Act of June 26, 1953 (67 Stat. 83; 7 U.S.C. 341 — 348).


Sec. 14.40.040. General powers and duties of the university.
 (a) There is created and established a corporation to be called the University of Alaska. It may in that name
     (1) sue and be sued;

     (2) receive and hold real and personal property;

     (3) contract and be contracted with; a contract entered into by the University of Alaska for the
          (A) rent or lease of premises for use and occupancy by the University of Alaska is subject to AS 36.30.080(c); however, notwithstanding the limitation imposed by AS 36.30.080(c)(2), the Board of Regents of the University of Alaska
               (i) may enter into a lease with a term described in (ii) of this subparagraph if the rent under the lease will be paid solely from a grant or contract made by the federal government or an agency of the federal government, and the grant or contract contains a firm commitment of not more than two years, or if the rent payable under the lease will be paid solely from university receipts as that term is defined in AS 14.40.491; and

               (ii) when authorized by (i) of this subparagraph, may enter into a lease with an initial term equal to the period of the firm commitment of the grant or contract, or with an initial term not to exceed two years when the rent is payable from university receipts; the lease may contain one or more optional renewal periods, but the total of all optional renewal periods may not exceed an additional five years;

          (B) acquisition of property by a lease-purchase or lease-financing agreement for the benefit of the University of Alaska is subject to AS 36.30.085;

     (4) adopt, use, and alter a corporate seal;

     (5) borrow money, issue debt, or enter into long-term obligations for the purchase of facilities, goods, or services; the obligations may secure, in whole or in part, debt issued by another party;

     (6) do and have done all matters necessary for the purpose of any function set out in this chapter.

 (b) The Board of Regents of the University of Alaska shall provide scholarship information to school districts as required by AS 14.43.930(a).




Sec. 14.40.043. University of Alaska office of public safety.
The Board of Regents may establish an office of public safety and prescribe the conditions of employment of public safety officers employed by the office. University of Alaska public safety officers have general police powers to enforce state and local laws in connection with offenses committed on property of the university.


Sec. 14.40.045. Religious or partisan instruction, tests, and appointments.
No instruction either sectarian in religion or partisan in politics shall be permitted in any department of the University of Alaska and no sectarian or partisan test shall be allowed or exercised in the appointment of regents, instructors, or other officers of the University of Alaska or in the admission of students or for any purpose.


Sec. 14.40.050. Discrimination because of sex, color, or nationality prohibited.
A person may not be deprived of the privileges of the University of Alaska because of sex, color, or nationality.


Sec. 14.40.055. Educational expansion program.
To expand educational and cultural opportunities in the state, to keep pace with the expansion of the state in other fields, and to provide educational facilities of particular interest to residents of the state, the Board of Regents shall
     (1) make a study of the principles and applicability of the junior college to the state;

     (2) establish additional extension courses and such other expansion of accredited courses for students as it considers advisable;

     (3) provide facilities suitable for carrying out a university program;

     (4) employ personnel;

     (5) procure supplies;

     (6) take all other appropriate measures to carry out the intent and purpose set forth in this section; and

     (7) develop and offer at one or more of the senior college or community college campuses a continuing professional education program for architects, engineers, building officials, and officers and employees of financial institutions on alternative energy systems and on energy conservation and solar design and construction methods applicable to the state.




Sec. 14.40.057. Extension of compliance acts.
Laws of the state designed to meet requirements of the United States government for the state’s acceptance of federal grants and allotments for educational and kindred purposes are extended to cover the establishment and operation of the university expansion program set forth in AS 14.40.055.


Sec. 14.40.060. University curriculum.
The University of Alaska shall use the property and funds acquired for the purpose of conducting a college where the leading objects shall be, without excluding other scientific and classical studies and including military tactics, to teach branches of learning related to agriculture, the mechanic arts, and household economics in order to promote a liberal and practical education.


Sec. 14.40.065. Student practicums immunity.
A person is not considered to be an employer of a student of the University of Alaska in a civil action based on the vicarious liability of an employer for the acts or omissions of an employee if the person
     (1) has agreed to allow the student to gain practical work experience with the person in a practicum that is part of the student’s curriculum; and

     (2) pays no compensation to the student.




Sec. 14.40.070. Collection of fossil remains authorized.
The University of Alaska may collect and store the bones and other remains of the mammoth, mastodon, horse, bison, and other fossil remains of these and other extinct animals found in the state in mining and other excavations.


Sec. 14.40.075. Alaska Earthquake and Volcanic Hazards Assessment Project; state seismologist.
 (a) The University of Alaska shall establish an Alaska Earthquake and Volcano Hazards Assessment Project within the seismology program of the geophysical institute. The project shall
     (1) collect, record, process, and archive seismic data on earthquakes and volcanic eruptions in the state;

     (2) conduct seismological studies relating to earthquake and volcano hazards assessment;

     (3) evaluate earthquake and volcanic seismic data to assist in the identification and assessment of earthquake and volcanic hazards that may pose a significant risk to lives and property in the state;

     (4) inform public officials, industry, and private citizens of potential earthquake or volcanic risks and assist in planning to reduce risks to lives and property; and

     (5) coordinate its activities with other organizations and agencies that monitor, collect, assess, and conduct research on earthquake and volcano hazards in order to avoid duplication of effort.

 (b) The administration and management of the project are under a university employee designated the state seismologist. The state seismologist shall provide timely information concerning earthquake and volcano hazards to public officials, industry, and private citizens and serve as liaison to state and federal agencies in the event of emergencies due to seismic and volcanic activities.




Sec. 14.40.080. Establishment of Institute of Marine Sciences.
The University of Alaska may establish an Institute of Marine Sciences to provide a program of education and research in physical, chemical, and biological oceanography, and related fields. When established, the Institute of Marine Sciences shall be maintained and operated as an integral part of the University of Alaska, at one or more sites determined by the Board of Regents. The powers, duties, and functions of the Board of Regents pertaining to the University of Alaska extend to the Institute of Marine Sciences in the same manner as to other departments or institutes of the university.


Sec. 14.40.082. Unmanned aircraft system training.
The University of Alaska may establish a training program in the operation of unmanned aircraft systems.


Sec. 14.40.085. Alaska State Climate Center; state climatologist.
 (a) The University of Alaska shall establish an Alaska State Climate Center within an appropriate unit of the university. The administration and management of the center is under the direction of a university employee designated the “state climatologist.”

 (b) The Alaska State Climate Center shall
     (1) prepare and update on a biennial basis a plan for the systematic acquisition and dissemination of climate-related information; the plan must include
          (A) an assessment of weather and climate information needs in Alaska;

          (B) a reasonable basis for setting priorities among these needs; and

          (C) a program for coordinating the activities of all available sources of weather- and climate-related information sources in order to meet the highest priority needs and to carry out the provisions of this section;

     (2) establish a state climate planning advisory group composed of at least three members from organizations that provide climate-related information, and at least three members from organizations that use climate-related information on a regular basis or from the general public;

     (3) solicit and consider the advice and recommendations of the state climate planning advisory group in preparing and updating the biennial plan for acquisition and dissemination of climate-related information;

     (4) operate and maintain a central repository and archive for reports, books, maps, and other records, and publications relating to weather and climatological information;

     (5) provide for public access to weather and climatological information and technical advisory services; and

     (6) enter into cooperative agreements, on behalf of the state and the university, in order to achieve intergovernmental climate program participation by the United States and the state; these agreements must be consistent with the provisions of 15 U.S.C. 2901 — 2908 (National Climate Program Act).

 (c) The Alaska State Climate Center may
     (1) investigate, describe, and interpret the characteristics of the weather and climate of the state, including their hazards and limitations;

     (2) coordinate with state and federal agencies in matters concerning weather data acquisition, collection, integration, and storage;

     (3) monitor federal weather-related activities to assure that the interests of the state are being served;

     (4) conduct research activities on the availability of solar, wind, and water resources that assess the impact of climate fluctuations on these resources;

     (5) publish bulletins, circulars, maps, or reports of the results of all research and investigations undertaken by the climate center, and distribute them to state agencies, government officials, industry, and the public;

     (6) provide lectures, talks, displays, and exhibits on the climate of the state for the general education of the public; and

     (7) enter into cooperative arrangements with local, state, and federal government agencies; foundations; universities; businesses; and other organizations engaged in climate-related research and services.




Sec. 14.40.087. Alaska Center for International Business. [Repealed, § 3 ch 43 SLA 1987.]
Sec. 14.40.088. Establishment of Institute for Circumpolar Health Studies.
 (a) The University of Alaska shall establish an Institute for Circumpolar Health Studies in an appropriate unit of the university at its Anchorage campus. The institute shall consist of a research and instruction branch and an administration and information branch.

 (b) The institute shall
     (1) encourage international cooperation, especially among circumpolar nations, with regard to research, studies, information, and instruction relating to circumpolar health issues;

     (2) serve as a center for the collection and exchange of information and medical and health sciences data relating to circumpolar health issues;

     (3) provide a mechanism for communication and cooperation between the university and the commissioner of health and social services in addressing the needs of Alaskans for health care services, opportunities for education in medical and health sciences, and other mutual concerns of the university and the department; and

     (4) conduct research and provide instruction and other services consistent with the mission and goals of the University of Alaska.




Sec. 14.40.090. Correspondence courses for prospectors and miners.
 (a) The University of Alaska shall establish and offer to bona fide Alaska prospectors and miners in the state a correspondence course equal and parallel to the mining extension course being taught at present.

 (b) The University of Alaska may establish the minimum charge necessary to defray costs of material, books, and postage used in the course.




Sec. 14.40.095. Establishment of a Center for Information Technology at University of Alaska Anchorage.
 (a) The University of Alaska may establish a Center for Information Technology at the University of Alaska Anchorage with major components at the University of Alaska Fairbanks and the University of Alaska Southeast. The center may charge fees for the services it provides. The university shall account for all fees collected under this section. The annual estimated balance in the account may be used by the legislature to make appropriations to the university to carry out the purposes of this section.

 (b) The center may
     (1) provide support for education, training, and research in information technologies to students, professionals, and the general public;

     (2) support research on the applications, effects, and management of information technologies and provide research results to the general public;

     (3) maintain an inventory of telecommunication research in the state;

     (4) develop and maintain a collection that includes state documents, research reports, and other telecommunication applications materials including videotapes, software, lesson plans, and scripts;

     (5) support the development and expansion of the geographic information system curriculum of the University of Alaska, including the possible establishment of undergraduate and masters programs;

     (6) develop and sponsor land record and geographic information system training workshops and continuing education seminars in cooperation with the appropriate departments of the university;

     (7) support or undertake research projects that apply geographic information technology to state issues and problems;

     (8) provide information on the availability of federal, state, municipal, and other sources of geographic information, including aerial photography and digital data bases related to surveying and land records, natural resource inventories, and related data;

     (9) prepare and publish on a regular basis research findings and periodicals relating to the center’s activities;

     (10) assist state agencies and municipalities in the development of policies, procedures, and capabilities for public access to automated geographic information;

     (11) recommend, in consultation with the commissioner of administration and affected state and local agencies and advisory boards, model standards and strategies relating to the implementation, indexing, documentation, mapping, data exchange, and other aspects of land records management and geographic information system development.

 (c) The university shall include in its annual report a summary of the center’s revenue and expenditures during the preceding two years.




Sec. 14.40.100. College extension service.
The Board of Regents may conduct a college extension service, the leading object of which is to carry information on rural life subjects to the people of the state.


Sec. 14.40.110. Establishment of Business, Economics, and Public Administration Research Program.
The University of Alaska may establish a Business, Economics, and Public Administration Research Program for the purpose of developing and publishing statistics and other information regarding the economy, government, and resources of the state.


Sec. 14.40.115. Establishment of Mineral Industry Research Program.
The University of Alaska shall establish a Mineral Industry Research Program and coordinate with state and federal mineral agencies to implement the program by
     (1) using the laboratory facilities and staff of the College of Earth Sciences and Mineral Industry to initiate applied and appropriate basic research in the areas of mineral beneficiation, mine and mill design, new mineral product development, and improvement of exploration methods, such as geochemical and geophysical prospecting;

     (2) making the facilities of the program available for research on mineral deposits in the state;

     (3) making studies on specific problems relative to Alaska’s mineral industry upon request.




Sec. 14.40.117. Establishment of Alaska Native Language Center.
The University of Alaska shall establish an Alaska Native Language Center, the purposes of which are to
     (1) study languages native to Alaska;

     (2) develop literacy materials;

     (3) assist in the translation of important documents;

     (4) provide for the development and dissemination of Alaska Native literature; and

     (5) train Alaska Native language speakers to work as teachers and aides in bilingual classrooms.




Article 2. Board of Regents and President of the University of Alaska.


Sec. 14.40.120. University governed by Board of Regents.
The University of Alaska shall be governed by a Board of Regents consisting of 11 regents.


Sec. 14.40.130. Qualifications of regents; special provisions relating to student regent.
 (a) Each regent shall be a citizen of the United States and a resident of the state.

 (b) In addition to satisfying the requirements of (a) of this section, the regent appointed under AS 14.40.150(b) must
     (1) be enrolled as a full-time student at the University of Alaska at the time of appointment;

     (2) remain a full-time student while serving.

 (c) Failure of the regent appointed under AS 14.40.150(b) to remain enrolled as a full-time student at the University of Alaska during the term for which the regent was appointed results in forfeiture of that office.

 (d) The governor shall appoint a successor from those students appearing upon the list of nominees submitted under AS 14.40.150(b) within 60 days of a forfeiture or vacancy in the office.

 (e) For purposes of this section, the term “full-time student” is defined as provided in the University of Alaska Academic Regulations.




Sec. 14.40.140. Term of office.
Except for a student regent as specified in AS 14.40.150(b), the term of office of a regent is eight years. The term of office begins on the first Monday in February of the year in which the appointment is made. Each regent serves until a successor is appointed and qualifies.


Sec. 14.40.150. Appointment of regents.
 (a) The governor shall appoint the regents subject to confirmation by a majority of all the members of the legislature in joint session. The names of those appointed shall be sent to the legislature within five days after the opening of the session, for confirmation or rejection. If a person appointed is not confirmed by a majority vote of all the members of the legislature, the appointment ceases and the name of another person shall be submitted within three days after the rejection. If the legislature adjourns without confirming the nominee, or if an interim vacancy occurs, the governor may appoint a qualified person to fill the vacancy. However, the person who has failed to be confirmed may not be appointed. The term of office of the appointee expires on the fifth day of the session of the legislature following the appointment.

 (b) At least one member of the Board of Regents must be a student. The student shall be appointed from a list of nominees submitted to the governor. The governor shall make the appointment from the list within 60 days after it is submitted. The list shall consist of the names of two students from each campus of the University of Alaska after an election is held at each campus. Elections shall be conducted under rules established by the Office of the Governor. The term of office of the regent appointed from the general student body, University of Alaska, is for two years. The term of office begins June 1 of the year in which the appointment is made. An appointment made under AS 14.40.130(d) shall be for the unexpired term of the original appointee. The term “campus” used in this subsection means a portion of the University of Alaska designated as a “campus” by the Board of Regents.




Sec. 14.40.155. Suspension and removal of regents.
 (a) The governor may, after providing notice and an opportunity for a hearing, suspend a member of the Board of Regents while a final disposition is pending on
     (1) a criminal complaint, presentment, information, or indictment involving a felony in any jurisdiction;

     (2) an information or formal criminal charges of a misdemeanor described under (g)(3) of this section;

     (3) a probable cause determination of a knowing ethics violation under AS 39.52 that results in an accusation under consideration before the personnel board;

     (4) a written complaint under consideration before the governor, signed under oath by the person making the complaint, that alleges malfeasance or nonfeasance in office as described in (g)(4) of this section, if the governor determines, after an investigation, that there is probable cause to believe that malfeasance or nonfeasance in office has occurred; a determination of probable cause under this paragraph
          (A) must specify with particularity the factual basis for the determination;

          (B) must include objective evidence of substantial and material malfeasance or nonfeasance; and

          (C) may not be based on political differences or the discretionary performance of a lawful act or a prescribed duty; or

     (5) a formal allegation or charge by a professional or occupational licensing body alleging or finding a violation of licensing statutes or regulations that is related to the regent’s ability or fitness to serve as a regent.

 (b) The governor may remove a member of the Board of Regents for good cause by providing to the member an accusation and an opportunity for a hearing and judicial review.

 (c) Notwithstanding the procedure under AS 44.62.390, a regent who has been suspended under (a) of this section may, at any time, request a hearing to
     (1) defend against the grounds for the suspension stated in the accusation; or

     (2) lift the suspension.

 (d) If a hearing is to be held under this section, the governor shall delegate the conduct of the hearing to the office of administrative hearings under AS 44.64.030(b). If a hearing is requested, the hearing officer shall prepare a proposed decision under AS 44.62.500(b)
     (1) to remove a regent based on clear and convincing evidence of good cause for removal;

     (2) not to remove a regent; or

     (3) to continue a suspension or lift a suspension of a regent.

 (e) AS 44.62.330 — 44.62.630 apply to all proceedings under this section.

 (f) After a final decision by the governor that suspends a regent under (a) of this section or removes a regent for good cause under (b) of this section, the governor shall file with the lieutenant governor a copy of the allegations made against the former regent, the governor’s findings on each of the allegations, and a complete record of the suspension or removal proceedings.

 (g) In this section, “good cause” means
     (1) a violation of AS 39.52 (Alaska Executive Branch Ethics Act) that results in a recommendation of removal under AS 39.52.410(b)(3);

     (2) a conviction of a felony in any jurisdiction;

     (3) a conviction of a misdemeanor in any jurisdiction if the misdemeanor involves
          (A) dishonesty;

          (B) breach of trust; or

          (C) the University of Alaska;

     (4) substantial and material malfeasance or nonfeasance in office that is not based on political differences or the discretionary performance of a lawful act or prescribed duty; in this paragraph “malfeasance or nonfeasance in office” includes
          (A) misconduct in office;

          (B) an inability to serve for an extended period of time;

          (C) neglect of duty;

          (D) incompetence;

          (E) unjustified failure to perform the duties of the Board of Regents;

     (5) a violation of a professional or occupational licensing statute or regulation that is related to the regent’s fitness to serve as a regent, resulting in the revocation or suspension of a professional or occupational license issued under state law; or

     (6) a failure to possess the qualifications of a regent under AS 14.40.130.




Sec. 14.40.160. Board meetings public; meeting notice; public facilities.
 (a) The provisions of AS 44.62.310 apply to meetings of the Board of Regents. All meetings of the board, its committees or subcommittees, are open to the public and press except as otherwise provided in AS 44.62.310(c). The findings of an executive session shall be made a part of the record of the proceedings of the Board of Regents. All records of the meetings and proceedings shall be open to inspection by the public and the press at reasonable times.

 (b) The Board of Regents may determine the time and place of its meetings. However, 30 days notice is required for all regular meetings and 10 days notice is required for special meetings of the Board of Regents, its committees or subcommittees called under the bylaws or rules or procedure of the Board of Regents. Emergency meetings may be called without notice.

 (c) The Board of Regents shall provide adequate facilities for members of the public to attend the meetings of the board, its committees or subcommittees.




Sec. 14.40.170. Duties and powers of Board of Regents.
 (a) The Board of Regents shall
     (1) appoint the president of the university by a majority vote of the whole board, and the president may attend meetings of the board;

     (2) fix the compensation of the president of the university, all heads of departments, professors, teachers, instructors, and other officers;

     (3) confer appropriate degrees as it may determine and prescribe;

     (4) have the care, control, and management of
          (A) all the real and personal property of the university; and

          (B) land
               (i) conveyed to the Board of Regents by the commissioner of natural resources in the settlement of the claim of the University of Alaska to land granted to the state in accordance with the Act of March 4, 1915 (38 Stat. 1214), as amended, and in accordance with the Act of January 21, 1929 (45 Stat. 1091), as amended; and

               (ii) conveyed to the Board of Regents in trust for the University of Alaska by the commissioner of natural resources under AS 14.40.365;

     (5) keep a correct and easily understood record of the minutes of every meeting and all acts done by it in pursuance of its duties;

     (6) under procedures to be established by the commissioner of administration, and in accordance with existing procedures for other state agencies, have the care, control, and management of all money of the university and keep a complete record of all money received and disbursed;

     (7) adopt reasonable rules for the prudent trust management and the long-term financial benefit to the university of the land of the university;

     (8) provide public notice of sales, leases, exchanges, and transfers of the land of the university or of interests in land of the university;

     (9) administer, manage, market, and promote a postsecondary education savings program, including the Alaska Higher Education Savings Trust under AS 14.40.802 and the Alaska advance college tuition savings fund under AS 14.40.803 — 14.40.817;

     (10) designate buildings owned by the university as covered buildings for purposes of paying the costs of use, management, operation, maintenance, and depreciation from the fund established under AS 37.05.555.

 (b) The Board of Regents may
     (1) adopt reasonable rules, orders, and plans with reasonable penalties for the good government of the university and for the regulation of the Board of Regents;

     (2) determine and regulate the course of instruction in the university with the advice of the president;

     (3) set student tuition and fees;

     (4) receive university receipts and, subject to legislative appropriation, expend university receipts in accordance with AS 37.07 (Executive Budget Act);

     (5) apply for and use the proceeds of a loan from the Alaska energy efficiency revolving loan fund (AS 18.56.855).




Sec. 14.40.175. Indemnification.
The Board of Regents shall insure or indemnify and protect the Board of Regents, any member of the Board of Regents, or any agent or employee of the University of Alaska or of the Board of Regents against financial loss and expense, including reasonable legal fees and costs arising out of any claim, demand, suit, or judgment by reason of alleged negligence, alleged violation of civil rights, or alleged wrongful act resulting in death or bodily injury to any person or accidental damage to or destruction of property, inside or outside the university premises, if the Board of Regents member, agent or employee, at the time of the occurrence, was acting under the direction of the Board of Regents within the course or scope of the duties of the member, agent, or employee.


Sec. 14.40.180. [Renumbered as AS 14.40.045.]
Sec. 14.40.190. Report.
 (a) The Board of Regents shall prepare a written report at the beginning of each regular session of the legislature of the condition of the university property, of all receipts and expenditures, including the administration and disposition of appropriated and restricted funds and information required under AS 37.25.010(d), and of the educational and other work performed during the preceding fiscal year. The board shall notify the legislature that the report is available.

 (b) In addition to the report required under (a) of this section, the Board of Regents shall prepare and present to the legislative committees having jurisdiction over education a biennial report, not later than the 30th legislative day of the first session of each legislature, titled “Alaska’s University for Alaska’s Schools” that describes the efforts of the university to attract, train, and retain qualified public school teachers. The report must include an outline of the university’s current and future plans to close the gap between known teacher employment vacancies in the state and the number of state residents who complete teacher training. The information reported under this subsection may also include short-term and five-year strategies with accompanying fiscal notes and outcome measures.




Sec. 14.40.200. Quorum.
Corporate business may not be transacted at any meeting of the Board of Regents unless at least six regents are present, the majority of the whole board to approve the same.


Sec. 14.40.210. Powers and duties of president of the university; research and development.
 (a) The president of the University of Alaska may
     (1) give general direction to the work of the University of Alaska in all its departments subject to the approval of the Board of Regents;

     (2) appoint the deans, heads of departments, professors, assistants, instructors, tutors, and other officers of the University of Alaska to the positions established by the Board of Regents;

     (3) establish procedures for receipt, expenditure, and fiscal year reporting of university receipts;

     (4) approve a contract between the University of Alaska and an employee that authorizes the employee to conduct research or other development of intellectual property and to develop, operate, or own a business related to or resulting from the research conducted during the employment; a business described under this paragraph may be jointly owned by the employee and the University of Alaska.

 (b) The president of the University of Alaska shall separately account for university receipts deposited in the treasury of the university. The annual estimated balance in the account may be used by the legislature to make appropriations to the university to carry out the purposes of this chapter.

 (c) The president of the University of Alaska shall implement a policy and procedure for the acceptance of academic credit toward a degree or technical program offered by the university if an applicant provides satisfactory evidence of successful completion of relevant military education, training, or service as a member of the armed forces of the United States, the United States Reserves, the National Guard of any state, the Military Reserves of any state, or the Naval Militia of any state.




Sec. 14.40.220. Duty of president to define duties and supervise appointees.
The president shall define the duties and supervise the performance of those persons who are appointed by the president to positions established by the Board of Regents.


Sec. 14.40.230. Powers of regents to remove officers.
The Board of Regents may remove from office any officer of the University of Alaska by a majority vote of the whole board when in its judgment the good of the university requires it.


Sec. 14.40.240. Power of president to suspend and expel students.
The power to suspend and expel a student for misconduct or other cause and to reinstate the student is vested solely in the president of the University of Alaska. The president may delegate the exercise of the power to the chancellor or another official on each campus of the university or to the administrative head or director of a community college or other campus or extended unit of the university.


Article 3. Property and Funds of the University of Alaska.


Sec. 14.40.250. Regents to act as trustees and administer money or property.
The Board of Regents may receive, manage, and invest money or other real, personal, or mixed property for the purpose of the University of Alaska, its improvement or adornment, or the aid or advantage of students or faculty, and, in general, may act as trustee on behalf of the University of Alaska for any of these purposes. The regents shall prepare a written report, in accordance with AS 14.40.190(a), as to the administration and disposition of money received under this section.


Sec. 14.40.251. Default on tuition, fees, and charges.
 (a) For the purposes of this chapter, tuition, a fee, or another charge to an individual by the University of Alaska is in default after payment has become 180 or more days past due. Upon default, the university may take the individual’s permanent fund dividend under AS 43.23.073.

 (b) The University of Alaska shall notify the individual of the default and the consequences of default imposed under (a) of this section by mailing a notice to the individual’s most recent address provided to the university by the individual or obtained by the university.

 (c) An individual may appeal a notice of default by filing a statement with the chief finance officer of the University of Alaska within 30 days after the date of the notice, requesting that the default status be reviewed. AS 44.62 (Administrative Procedure Act) does not apply to the review of default under this section. Within 40 days after receiving a written request for review, the chief finance officer shall inform the individual in writing of the decision. The decision of the chief finance officer is a final decision that may be appealed to the superior court under the Alaska Rules of Appellate Procedure.




Sec. 14.40.253. Financing notice and approval.
If the University of Alaska intends to enter into an obligation, except for refinancing obligations, under AS 14.40.040(a)(5) with an annual payment by the university anticipated to exceed $2,500,000, the university shall provide notice to the legislature. The notice must include the anticipated annual payment amount, the anticipated financing, and the total construction, acquisition, or other costs of the project. The university may not enter into an obligation requiring a financing notice under this section, other than a refinancing obligation, unless the project has been approved by the legislature by law. An appropriation for the project does not constitute approval of the project for the purpose of this section.


Sec. 14.40.254. University revenue bonds.
 (a) Subject to AS 14.40.253, the board may issue revenue bonds to pay the cost of acquiring, constructing, or equipping a facility that the board determines is necessary.

 (b) The board may enter into an agreement with a trustee or bond owner for the purpose of securing payment of revenue bonds issued by the University of Alaska to acquire, construct, or equip a facility that the board determines is necessary. The agreement may include the fixing and collection of fees, charges, or rentals pledged to secure payment of the revenue bonds and agreement regarding the use of the proceeds of the revenue bonds.

 (c) The state pledges not to limit or alter rights vested under this section in the University of Alaska to fulfill the terms of a contract with revenue bond owners.

 (d) The board may pledge revenue received by the University of Alaska as fees, charges, or rentals in order to secure payment of the revenue bonds. A pledge of revenue received by the University of Alaska is considered a perfected security interest and is valid and binding from the time the pledge is made. The pledge creates an immediate lien against property pledged without physical delivery or other act.




Sec. 14.40.255. Investment of surplus money.
If the Board of Regents determines that there is a surplus of money, received in the form of state and federal appropriations, above the amount sufficient to meet current and projected cash expenditure needs of the university, the surplus must be invested as set out in AS 37.10.071. Income earned on investments made under this section may be retained by the university and expended in accordance with AS 37.07 (Executive Budget Act.)


Sec. 14.40.257. Reimbursement for costs of capital projects.
 (a) Subject to appropriations for the purpose, during each fiscal year, the legislature may appropriate an amount to reimburse the University of Alaska for the cost to be paid by the university during that same fiscal year for the principal and interest on outstanding debt for the projects listed in (b) of this section.

 (b) An appropriation under this section may be used only for reimbursement of costs incurred for acquisition, construction, and renovation of the following projects and only for reimbursement of total project costs incurred up to the following amounts:


PROJECTUniversity of Alaska, Anchorage Community and Technical $14,000,000College CenterJuneau Readiness Center/UAS Joint Facility (Juneau) 5,470,000 (c) The University of Alaska is authorized to incur debt for the projects listed under (b) of this section. AS 14.40.253 does not apply to the projects listed in (b) of this section or to obligations incurred by the university to finance those projects.




Sec. 14.40.260. [Renumbered as AS 14.40.055.]
Sec. 14.40.270. [Renumbered as AS 14.40.057.]
Sec. 14.40.280. Endowments and donations.
 (a) Title to and control or possession of land, personal property, money, and other property that is devised, bequeathed, or given to the university shall be taken by the university in its corporate capacity acting by and through the Board of Regents or an authorized agent and shall be entered in the perpetual inventory of the university established in AS 14.40.330.

 (b) All monetary gifts, bequests, or endowments that are made to the University of Alaska for the purpose of the separate endowment trust fund established under AS 14.40.400 shall be deposited into that endowment trust fund.

 (c) Except as provided by (b) of this section, the monetary gifts, bequests, or endowments that are made to the University of Alaska shall be managed and invested by the Board of Regents. In carrying out its management and investment responsibilities under this subsection, the Board of Regents has the same powers and duties with respect to the gifts, bequests, and endowments of the University of Alaska as are provided or required under AS 37.10.071 and AS 13.65 (Uniform Prudent Management of Institutional Funds Act). Notwithstanding any other provision of law, AS 37.10.071 governs the management and investment responsibilities established under this subsection if
     (1) both AS 37.10.071 and AS 13.65 apply to the management and investment responsibilities established under this subsection; and

     (2) AS 37.10.071 conflicts with AS 13.65.




Sec. 14.40.282. Endowment for the physical sciences.
 (a) The Board of Regents shall establish an endowment for the physical sciences at the University of Alaska campus in Fairbanks. The endowment shall be managed as a perpetual trust. The income of the endowment shall be used to pay the salary and related expenses of the person appointed under (b) of this section for research, teaching, and advanced studies in one or more physical science disciplines.

 (b) The Board of Regents shall appoint a person who is distinguished in one or more physical science disciplines to be paid from the endowment for the physical sciences. The tenure and the duties of the appointee shall be established by the Board of Regents based on the need for
     (1) teaching, research, and studies in physical sciences of special interest in the state; and

     (2) advancement of scientific study at the University of Alaska.




Sec. 14.40.290. Property and funds generally.
 (a) Federal grants and appropriations paid to the commissioner of revenue under AS 14.40.380, 14.40.410, or 14.40.430, or from a source described in AS 14.40.450, shall be transferred to the state treasury under AS 37.10.060. The Department of Administration, upon requisitions by the Board of Regents signed by its president and secretary, shall pay to the treasurer of the Board of Regents all federal land grant college funds coming into the possession of the Department of Administration and subject to requisition by the Board of Regents and shall disburse federal funds in aid of land grant colleges in accordance with the federal statute providing for disbursement.

 (b) [Repealed, § 10 ch 46 SLA 1977.]
 (c) [Repealed, § 1 ch 38 SLA 1968.]




Sec. 14.40.291. Land of the University of Alaska not public domain land.
 (a) Notwithstanding any other provision of law, university-grant land, state replacement land that becomes university-grant land on conveyance to the university, land conveyed to the Board of Regents in trust for the University of Alaska under AS 14.40.365, and any other land owned by the university is not and may not be treated as state public domain land. Land conveyed to the Board of Regents in trust for the University of Alaska under AS 14.40.365 shall be managed as nontaxable trust land under AS 14.40.365 — 14.40.367 and policies of the Board of Regents.

 (b) Title to or interest in land described in (a) of this section may not be acquired by adverse possession, prescription, or in any other manner except by conveyance from the university.

 (c) The land described in (a) of this section is subject to condemnation for public purpose in accordance with law.




Sec. 14.40.295. Working capital reserve fund. [Repealed, § 10 ch 46 SLA 1977.]
Sec. 14.40.296. Working capital reserve fund.
 (a) There is established in the treasury of the University of Alaska the University of Alaska working capital reserve fund. The fund consists of money appropriated by the legislature for the purpose of providing nonlapsing current working capital for the University of Alaska and is not available for appropriation by the Board of Regents.

 (b) [Repealed, § 19 ch 6 SLA 1998.]




Sec. 14.40.300. Creation and appointment of comptroller.
The Board of Regents shall create the office of comptroller of the university, fix the salary, and determine the duties of the office. The Board of Regents shall fill the office. The comptroller shall report directly to the Board of Regents.


Sec. 14.40.310. Fiscal year.
The fiscal year of the University of Alaska begins on July 1 and closes at midnight on the following June 30.


Sec. 14.40.320. Requisitions on funds. [Repealed, § 10 ch 46 SLA 1977.]
Sec. 14.40.325. Reallocation within state appropriations.
Notwithstanding the provisions of AS 37.07.080(e), each appropriation to the University of Alaska is subject to reallocation by the university administration under procedures established by the Board of Regents and the office of management and budget in the Office of the Governor. Transfers may not be made between appropriations except as provided in an act making transfers between appropriations.


Sec. 14.40.330. Inventory of property.
The Board of Regents shall maintain or cause to be maintained a perpetual inventory of all permanent property of the University of Alaska.


Sec. 14.40.340. Applicability of bid practices to University of Alaska. [Repealed, § 67 ch 106 SLA 1986. For current law, see AS 36.30.005(c).]
Sec. 14.40.350. Board of Regents authorized to lease land.
The Board of Regents may execute leases for mining, agriculture, or other purposes to the land granted for the benefit of an agricultural college and school of mines for Alaska by the Act of Congress approved March 4, 1915, for such time and at such rent or royalty as may seem just and as provided by law.


Sec. 14.40.360. Board of Regents authorized to select and to sell or lease land granted by Act of Congress.
The Board of Regents may select the land granted to Alaska by the Act of Congress approved January 21, 1929, as amended, may sell or lease the land, and shall deposit the net income as provided in AS 14.40.400(a) in conformity with that Act.


Sec. 14.40.365. University land grant.
 (a) Except as provided in (b) of this section, before July 1, 2008, the commissioner of natural resources shall convey to the Board of Regents in trust for the University of Alaska, by quitclaim deed, the state land identified for conveyance to the university and described in the document titled “University of Alaska Land Grant List 2005,” dated January 12, 2005.

 (b) As soon as practicable after June 30, 2055, the commissioner of natural resources shall convey to the Board of Regents in trust for the University of Alaska, by quitclaim deed, the state land described as the “University Research Forest” and identified for conveyance to the university in the document titled “University of Alaska Land Grant List 2005,” dated January 12, 2005.

 (c) As soon as practicable after the receipt of patent from the United States, but not before the land is otherwise required to be conveyed under this section, the commissioner of natural resources shall convey to the Board of Regents in trust for the University of Alaska, by quitclaim deed, federal land that has been selected for conveyance to the state under the Alaska Statehood Act but is subject to a federal mining claim, and that is identified in the document titled “University of Alaska Land Grant List 2005,” dated January 12, 2005, for conveyance to the university upon the state’s acquisition of patent.

 (d) Notwithstanding AS 38.05.125(a), and except as otherwise provided in this section, the transfer of ownership of land from the commissioner of natural resources to the Board of Regents in trust for the University of Alaska under this section includes the interest of the state in the coal, ores, minerals, fissionable materials, geothermal resources, and fossils, oil, and gas that may be in or on the land.

 (e) Land conveyed under this section to the Board of Regents in trust for the University of Alaska is subject to any valid possessory interest or other valid existing right, including any lease, license, contract, prospecting site, claim, sale, permit, right-of-way, Native allotment, or easement held by another person, including a federal, state, or municipal agency, on October 23, 2005.

 (f) Before conveying land under this section, the commissioner of natural resources shall reserve access under AS 38.05.127, but other provisions of AS 38.04 and AS 38.05 do not apply to the commissioner’s preparation for conveyance of land to the Board of Regents in trust for the University of Alaska under this section. In addition to access under AS 38.05.127, the commissioner may reserve in the conveyance document existing offshore uses such as aquatic fish farm sites, anchorages for vessels, fish buying stations, trails, roads, and other access routes that provide public access to adjacent land and public waterways; however, an easement along tidewater reserved by the commissioner under AS 38.05.127 may not exceed 25 feet.

 (g) In addition to rights or an interest held by a person under (e) of this section, land conveyed to the Board of Regents in trust for the University of Alaska under this section
     (1) is subject to
          (A) sec. 6(i) of the Alaska Statehood Act (P.L. 85-508, 72 Stat. 339);

          (B) AS 19.10.010;

          (C) any easement, right-of-way, or other access under former 43 U.S.C. 932 (sec. 8, Act of July 26, 1866, 14 Stat. 253);

          (D) the provisions of any memorandum of agreement entered into between the University of Alaska and the commissioner of natural resources governing shared benefits or costs associated with land to be conveyed to the Board of Regents in trust for the University of Alaska;

          (E) any interest transferred to the state by quitclaim deed dated June 30, 1959, under authority of the Alaska Omnibus Act (P.L. 86-70, 73 Stat. 141); and

     (2) excludes the mineral estate on land that is subject to a valid state mining claim.

 (h) As soon as practicable after the extinguishment, release, or expiration of a valid state mining claim located on land to be conveyed under this section, but not before the land is otherwise required to be conveyed under this section, the commissioner of natural resources shall convey the mineral estate excluded from conveyance under (g)(2) of this section.

 (i) The responsibility for the management of land conveyed to the Board of Regents in trust for the University of Alaska under this section vests with the Board of Regents in trust for the University of Alaska on the date of recording of that conveyance.

 (j) The Board of Regents of the University of Alaska is entitled to receive any income derived from land conveyed to the Board of Regents in trust for the University of Alaska under this section accruing after the date of conveyance, including any income accruing from an existing lease, license, contract, prospecting site sale, permit, right-of-way, easement, or trespass claim.

 (k) Notwithstanding any other provision of this section, within 10 years after conveyance of land under this section, the Board of Regents may reconvey to the Department of Natural Resources land
     (1) containing hazardous waste that was present on the land before conveyance under this section;

     (2) on which is located a historic or archeological site that is subject to management under AS 41.35; or

     (3) that the Board of Regents and the commissioner of natural resources jointly agree is in the best interests of the state and the university to reconvey.

 (l) After October 23, 2005 and before the conveyance of a parcel of land to the Board of Regents in trust for the University of Alaska under this section, the commissioner of natural resources may not convey, without consent of the university, any irrevocable interest in a parcel that is required to be conveyed to the Board of Regents in trust for the University of Alaska under this section.

 (m) The commissioner of natural resources may make minor adjustments to the maps or legal descriptions of the state land identified for conveyance to the university and described in the document titled “University of Alaska Land Grant List 2005,” dated January 12, 2005, to correct omissions or errors.

 (n) Notwithstanding (a) of this section, the following state land described in the document entitled “University of Alaska Land Grant List 2005,” dated January 12, 2005, may not be conveyed to the University of Alaska under this section:
     (1) Parcel Number CS.DI.1001, Duke Island;

     (2) Parcel Number MF.1002, Idaho Inlet;

     (3) Parcel Number CS.KI.1001, Kelp Island;

     (4) Parcel Number HA.CH.1001, Haines-Chilkoot;

     (5) Parcel Number KT.1004, Neets Creek;

     (6) Parcel Number MA.KR.1001, Kodiak Rocket Range;

     (7) Parcel Number ST.1002, Pelican;

     (8) Parcel Number PA.1001, Port Alexander; and

     (9) Parcel Number ST.1002, Warm Springs Bay.

 (o) Notwithstanding (a) of this section, the state land identified in this subsection and described in the document entitled “University of Alaska Land Grant List 2005,” dated January 12, 2005, may not be conveyed to the University of Alaska under this section if the land is included in a borough formed before July 1, 2009, that includes Wrangell or Petersburg. If a borough is not formed before July 1, 2009, land described in this subsection shall be conveyed to the University of Alaska on July 1, 2009. If a borough is formed before July 1, 2009, and the borough does not select land described in this subsection before January 1, 2013, the land not selected by the borough shall be conveyed to the University of Alaska on June 30, 2013. The following land is subject to this subsection:
     (1) Parcel Number SD.1001, Beecher Pass;

     (2) Parcel Number SD.1001, Favor Peak;

     (3) Parcel Number CS.TL.1001, Three Lake Road;

     (4) Parcel Number SD.1001, Read Island;

     (5) Parcel Number SD.1001, Whitney Island;

     (6) Parcel Number CS.EW.1001, Earl West Cove;

     (7) Parcel Number CS.OV.1001, Olive Cove; and

     (8) Parcel Number SD.1001, Thoms Place.

 (p) Notwithstanding (a) of this section, each of the following parcels described in the document entitled “University of Alaska Land Grant List 2005,” dated January 12, 2005, may not be conveyed to the University of Alaska under this section until all Native allotment applications applicable to that parcel have been denied:
     (1) Parcel Number PA.1002, Biorka Island; and

     (2) Parcel Number NS.NS.1001, Lisianski Peninsula.

 (q) Notwithstanding (a) of this section, the state land identified in this subsection and described in the document entitled “University of Alaska Land Grant List 2005,” dated January 12, 2005, may not be conveyed to the University of Alaska under this section if the land is included in a borough formed before July 1, 2009. If a borough is not formed before July 1, 2009, the land described in this subsection shall be conveyed to the University of Alaska on July 1, 2009. If a borough is formed before July 1, 2009, and the borough does not select land described in this subsection before January 1, 2013, the land not selected by the borough shall be conveyed to the University of Alaska on June 30, 2013. The following land is subject to the provisions of this subsection: Parcel Number PA.1002, Mite Cove.




Sec. 14.40.366. Management requirements for university land.
 (a) Before the conveyance or the disposal of an interest in the land to a third party, land conveyed to the Board of Regents in trust for the University of Alaska under AS 14.40.365 shall be managed in a manner that, to the extent practicable, permits reasonable activities of the public, including historic recent public uses, that do not interfere with the use or management of the land by the university.

 (b) For land conveyed to the Board of Regents in trust for the University of Alaska under AS 14.40.365, the Board of Regents shall
     (1) seek public comment on proposals for land development, exchange, or sale; and

     (2) adopt policies that require the preparation of land development plans and land disposal plans.

 (c) Before the Board of Regents of the University of Alaska offers a parcel of land for sale under this section, the board shall offer first refusal to the closest municipality.

 (d) The Board of Regents shall adopt policies requiring public notice before approval of land development plans and land disposal plans. The policies must require that the notice be provided not less than 30 days before the proposed action and that the notice be
     (1) sent to local legislators, municipalities, and legislative information offices in the vicinity of the action and at other locations as the university may designate;

     (2) published in newspapers of general circulation in the vicinity of the proposed action at least once each week for two consecutive weeks; and

     (3) published on state and university public notice Internet websites.

 (e) In this section, “development, exchange, or sale” does not include the grant of an easement or right-of-way or the development of a campus facility.




Sec. 14.40.367. Confidential records relating to university land and interests in land.
Notwithstanding AS 40.25.100 — 40.25.295, on a determination that it is in the best interest of the University of Alaska or on the request of the person who has provided the information, the president of the university may keep the following confidential:
     (1) the name of a person applying for the sale, lease, or other disposal of university land or an interest in university land;

     (2) before the issuance of a notice of intent to award a contract relating to a sale, lease or disposal of university land or an interest in university land, the names of the participants and the terms of their offers;

     (3) all geological, well, geophysical, engineering, architectural, sales, market, cost, appraisal, timber cruise, gross receipts, net receipts, or other financial information relating to university land or an interest in university land and considered for, offered for, or currently subject to disposal or a contract;

     (4) cost data and financial information submitted by an applicant in support of applications for bonds, leases, or other information in offerings and ongoing operations relating to management of university land;

     (5) applications for rights-of-way or easements across university land; and

     (6) requests for information about or applications by public agencies for university land that is being considered for use for a public purpose.




Sec. 14.40.368. Encumbrances and trespasses. [Repealed, § 8 ch 8 FSSLA 2005.]
Sec. 14.40.370. Books of account and statement of trust funds. [Repealed, § 10 ch 46 SLA 1977.]
Sec. 14.40.380. Assent of legislature to federal land and money grants.
The state assents to the provisions and accepts the benefits of the Act of Congress approved March 4, 1915, and the Acts of Congress approved August 30, 1890, and March 4, 1907, in behalf of the University of Alaska, and the commissioner of revenue is designated as the officer to whom the money shall be paid.


Sec. 14.40.390. Federal land grants to Agricultural College and School of Mines reaccepted for university.
The state assents to the provisions and accepts the benefits of the grants of land authorized by the Act of Congress of January 21, 1929, 45 Stat. 1091 — 1093, as amended by the Act of Congress of September 19, 1966, 80 Stat. 811, for the Agricultural College and School of Mines as integral parts of the University of Alaska, and the University of Alaska is designated the beneficiary under that Act.


Sec. 14.40.400. Fund for money from sale or lease of land granted by Act of Congress.
 (a) The Board of Regents shall establish a separate endowment trust fund in which shall be held in trust in perpetuity all
     (1) net income derived from the sale or lease of the land granted under the Act of Congress approved January 21, 1929, as amended;

     (2) net income derived from the sale, lease, or management of the land conveyed to the Board of Regents in trust for the University of Alaska under AS 14.40.365; however, the amount deposited in the endowment trust fund under this paragraph resulting from mineral lease royalties and royalty sales proceeds may not be less than 25 percent of all such mineral lease royalties and royalty sales proceeds received by the university; and

     (3) monetary gifts, bequests, or endowments made to the University of Alaska for the purpose of the fund.

 (b) The Board of Regents is the fiduciary of the fund. The Board of Regents shall account for and invest the fund. In carrying out its investment responsibilities under this subsection, the Board of Regents has the same powers and duties with respect to the fund as are provided or required under AS 37.10.071 and AS 13.65 (Uniform Prudent Management of Institutional Funds Act). Notwithstanding any other provision of law, AS 37.10.071 governs the investment responsibilities established under this subsection if
     (1) both AS 37.10.071 and AS 13.65 apply to the investment responsibilities established under this subsection; and

     (2) AS 37.10.071 conflicts with AS 13.65.

 (c) The total return from the fund shall be used exclusively for the University of Alaska, as the successor under AS 14.40.030 of the Agricultural College and School of Mines.

 (d) The proceeds arising from the sale or disposal of land granted under the Act of Congress approved January 21, 1929, as amended, may not be used for the support of a sectarian or denominational college or school.

 (e) [Repealed, § 14 ch 9 SLA 1997.]
 (f) In this section,
     (1) “fund” means the separate endowment trust fund established under (a) of this section;

     (2) “total return” means the total earning of the fund, including current yield, gains, and capital appreciation, less all costs, expenses, losses, and capital depreciation.




Sec. 14.40.410. Federal grants of money to establish agricultural experiment stations.
The state assents to the provisions and accepts the benefits of the Act of Congress entitled “An Act to establish agricultural experiment stations in connection with the colleges established in the several States under the provisions of an Act approved July 2, 1862, and of the Acts supplementary thereto”approved March 2, 1887, as amended and supplemented and known as the Hatch Act, and extended to Alaska by an Act of Congress entitled “An Act to extend the benefits of the Hatch Act and the Smith-Lever Act to the Territory of Alaska,” approved February 23, 1929, in behalf of the University of Alaska, except that no substations may be established by the Board of Regents except by direct authority of the legislature. The commissioner of revenue is designated as the officer to whom the money shall be paid.


Sec. 14.40.420. University designated as beneficiary under Hatch Act and empowered to establish Agricultural Experiment Station.
The University of Alaska is designated as the beneficiary under the provisions of the Hatch Act and may establish a department to be known as the Agricultural Experiment Station.


Sec. 14.40.430. Acceptance of federal appropriation for agricultural extension work.
The state assents to the provisions and accepts the benefits of the Act of Congress entitled “An Act to provide for cooperative extension work between agricultural colleges in the United States receiving the benefits of an Act of Congress approved July 2, 1862, and of Acts supplementary thereto and the United States Department of Agriculture” approved May 8, 1914, as amended and supplemented and known as the Smith-Lever Act and extended to Alaska by an Act of Congress entitled “An Act to extend the benefits of the Hatch Act and the Smith-Lever Act to the Territory of Alaska” approved February 23, 1929, in behalf of the University of Alaska. The commissioner of revenue is designated as the officer to whom the appropriations shall be paid.


Sec. 14.40.440. University designated beneficiary of Smith-Lever Act and empowered to carry on agricultural extension work.
The University of Alaska is designated as the beneficiary under the provisions of the Smith-Lever Act, and may administer and carry on agricultural extension work in the state in cooperation with the United States Department of Agriculture.


Sec. 14.40.450. Governor authorized to make certificates to obtain federal grants of money.
The governor is authorized to make all certificates required by law or the regulations of the Department of Agriculture or of the Department of the Interior necessary to be made to entitle the state to grants of money for the benefits of state colleges of agriculture and mechanic arts authorized under any Act of Congress.


Sec. 14.40.453. Confidentiality of research.
The public records inspection requirements of AS 40.25.110 — 40.25.121 do not apply to writings or records that consist of intellectual property or proprietary information received, generated, learned, or discovered during research conducted by the University of Alaska or its agents or employees until publicly released, copyrighted, or patented, or until the research is terminated, except that the university shall make available the title and a description of all research projects, the name of the researcher, and the amount and source of funding provided for each project.


Sec. 14.40.455. University risk management fund. [Repealed, § 12 ch 42 SLA 1997.]
Sec. 14.40.458. University corporate interests.
 (a) The university may purchase an interest in a corporation if the Board of Regents of the University of Alaska authorizes the purchase and the purchase advances a public purpose of the university.

 (b) If the university purchases an interest in a corporation, the corporation is not considered to be a part of the university for any purpose, except to the extent that both the Board of Regents of the University of Alaska and the corporation’s articles of incorporation state otherwise.

 (c) Notwithstanding AS 09.50.250 and any other law, the University of Alaska is not liable for the obligations of a corporation that the University of Alaska has purchased an interest in under (a) of this section,
     (1) except to the extent that the president of the university signs a written agreement on behalf of the university that expressly states that the university is liable for the obligations of the corporation and the obligations for which the university is liable are identified in the written agreement; or

     (2) unless the university has engaged in fraudulent or other wrongful conduct relating to an obligation of the corporation or to the assets of the corporation that may be used to pay the obligation.

 (d) In this section,
     (1) “corporation” means a for-profit corporation, a nonprofit corporation, or a limited liability company, whether or not the corporation or company is organized in this state;

     (2) “interest” means a membership, or a share or other ownership interest;

     (3) “nonprofit corporation” means a corporation that qualifies for exemption from taxation under 26 U.S.C. 501(c) (Internal Revenue Code);

     (4) “university” means the University of Alaska.




Sec. 14.40.460. [Renumbered as AS 14.43.010.]
Sec. 14.40.461. University research forest.
 (a) For the purpose of advancing research into forest practices, ecology, wildlife management, and recreation, a university research forest is established on land described as the “University Research Forest” and identified for conveyance to the Board of Regents in trust for the University of Alaska in the document titled “University of Alaska Land Grant List 2005,” dated January 12, 2005.

 (b) Before conveyance of university research forest land to the Board of Regents in trust for the University of Alaska under AS 14.40.365(b), the commissioner of natural resources shall manage the university research forest to accomplish the purposes of this section and in accordance with state land use plans adopted under AS 38.04.065, forest management plans adopted under AS 41.17.230, and other provisions of law applicable to state-owned land.

 (c) Notwithstanding the limitations of AS 14.40.365(l), on or before the date a parcel is required to be conveyed to the Board of Regents of the University of Alaska under AS 14.40.365(b), the commissioner of natural resources may
     (1) convey an irrevocable interest in land located in the research forest that terminates or returns to the state on or before the date the parcel is required to be conveyed under AS 14.40.365(b);

     (2) sell timber rights and dispose of other renewable resources located in the research forest.

 (d) After conveyance of university research forest land to the Board of Regents in trust for the university under AS 14.40.365(b), the Board of Regents may disestablish some or all of the university research forest established by this section, and dispose of, or develop, land within the former research forest, if the Board of Regents first
     (1) provides to the public and the commissioner of natural resources reasonable notice and an opportunity for comment on the board’s proposed decision regarding disestablishment;

     (2) considers comments received from the public and the commissioner of natural resources under (1) of this subsection;

     (3) evaluates whether the objectives of advancing research into forest practices, ecology, wildlife management, and recreation can be accomplished without retaining some or all of the research forest;

     (4) determines, following notice and any public comment by local timber industry representatives, that disposal of the land will not interfere with commercially viable timber harvest resource development; and

     (5) concludes that it is in the best interest of the university to disestablish some or all of the research forest.




Sec. 14.40.470. [Renumbered as AS 14.43.015.]
Sec. 14.40.480. [Renumbered as AS 14.43.020.]
Sec. 14.40.490. [Renumbered as AS 14.40.491.]
Sec. 14.40.491. Definition of university receipts.
In AS 14.40.120 — 14.40.491, “university receipts” includes
     (1) student fees, including tuition;

     (2) receipts from university auxiliary services;

     (3) recovery of indirect costs of university activities;

     (4) receipts from sales and rentals of university property;

     (5) federal receipts;

     (6) gifts, grants, and contracts;

     (7) receipts from sales, rentals, and the provision of services of educational activities; and

     (8) receipts attributable to amounts distributed from university endowments established and managed under AS 14.40.280 and from the endowment trust fund established and managed under AS 14.40.400.




Secs. 14.40.510 — 14.40.550. [Renumbered as AS 14.43.050 — 14.43.075.]

Article 4. Community Colleges.


Sec. 14.40.560. Authority to cooperate.
A qualified school district or political subdivision may make an agreement with the University of Alaska for the establishment, operation, and maintenance of a community college. A qualified school district or qualified political subdivision shall pay all instructional and administrative costs for nondegree college programs and activities offered.


Sec. 14.40.570. Authority of board.
 (a) Since academic education beyond the high school level is a statewide responsibility, the board, in its discretion and as the need arises, may cooperate with the federal government and qualified school districts and political subdivisions in the establishment of appropriate higher educational programs and activities. The board is responsible for the selection of all community college instructors, part and full-time, for the academic degree programs and activities, and shall pay all instructional and administrative costs, including cost of special equipment and instructional materials, for academic degree programs and activities offered.

 (b) Selected upper division and graduate level courses of instruction, offered by the university through its off-campus instructional program to meet local needs, may be coordinated through the office of the director of a community college.




Sec. 14.40.580. Use of joint facilities.
 (a) If facilities used by the community college are owned by the school district or political subdivision, the board, subject to availability of appropriated funds, may reimburse the school district for all expenses directly related to facilities for academic degree programs and activities. The school district or political subdivision shall bear all expenses directly related to nondegree programs and activities.

 (b) If separate facilities are financed, constructed, or maintained from federal, state, or private funds for either academic degree or nonacademic degree programs and activities of the community college, then the board has title to and control of the separate facilities used for these purposes. If separate facilities are financed, constructed, or maintained from school district or political subdivision funds for either degree or nondegree programs and activities, the school district or political subdivision has title to and control of the separate facilities used for these purposes.




Sec. 14.40.590. Director.
The administrative head of a community college established by the University of Alaska in cooperation with school districts or political subdivisions is a director. The director shall be selected by the board, subject to approval by the governing body of the school district or political subdivision.


Sec. 14.40.600. Regulations.
A community college established by the university in cooperation with school districts or political subdivisions shall be established, maintained, and operated under rules and regulations adopted by the board. The selection and academic qualifications for personnel and the curriculum of a community college, insofar as it pertains to academic degree programs and activities, is the responsibility of the board. The selection and qualifications of personnel for nondegree programs and activities of the community college are the responsibility of the governing body of the school district or political subdivision.


Sec. 14.40.610. Disposition of income.
 (a) [Repealed, § 12 ch 42 SLA 1997.]
 (b) All money, including tuition and fees received before or after April 10, 1962, from the operations of a community college established, operated, and maintained under AS 14.40.560 — 14.40.640 and directly related or attributable to nondegree programs and activities of the community college, shall be placed in the appropriate fund of the qualified school district or political subdivision cooperating with the university in the establishment of the community college.




Sec. 14.40.620. Savings clause.
An agreement between the University of Alaska and a community college in effect on April 10, 1962, shall remain in effect until its agreed expiration unless, before the agreed expiration, it is mutually cancelled or modified by the contracting parties.


Sec. 14.40.630. Definitions.
In AS 14.40.560 — 14.40.640, unless the context otherwise requires,
     (1) “board of regents” or “board” means the Board of Regents of the University of Alaska;

     (2) “community college” means a program of education established by the University of Alaska in cooperation with qualified school districts or qualified political subdivisions of the state, including both academic degree and nondegree programs;

     (3) “qualified school district” or “qualified political subdivision” means a school district or political subdivision organized under the laws of the state, or a group of two or more contiguous school districts or political subdivisions of the state, or a combination of each, which combination, considered as a unit, meets the following minimum requirements for the establishment of a community college:
          (A) makes application to the Board of Regents of the University of Alaska for participation in the community college program;

          (B) satisfies educational standards of the University of Alaska according to criteria established by the Board of Regents;

          (C) has had an average daily membership during the previous school year of at least 75 high school students, grades 9-12;

          (D) has established to the satisfaction of the Board of Regents the practical need for a community college within the district or political subdivision; and

          (E) makes arrangements for defraying its proper share of the costs of the operation and maintenance of a community college, as provided by the terms of AS 14.40.560 — 14.40.640.




Sec. 14.40.640. Short title.
AS 14.40.560 — 14.40.640 may be cited as the Community College Act.


Article 5. University Retirement Programs.


Sec. 14.40.660. [Renumbered as AS 14.44.010.]
Sec. 14.40.661. Authority of board.
 (a) The board may establish and maintain university retirement programs for eligible employees in which retirement and death benefits are provided through the purchase of annuity contracts, either fixed, variable, or a combination of fixed and variable. Participation in a university retirement program is in place of participation in a state retirement system. The university may establish retirement programs for new employees in a participating position at any time. Retirement programs must be optional.

 (b) The board shall
     (1) provide for the administration of the retirement programs, including procedures for resolving complaints from participating employees;

     (2) designate the company or companies to which payment of the contributions required under AS 14.40.691 may be made, after considering the
          (A) nature and extent of the rights and benefits that the contracts will provide to employees who elect to participate and to their beneficiaries;

          (B) relation of the contractual rights and benefits to the contributions to be made under AS 14.40.661 — 14.40.799;

          (C) suitability of the contractual rights and benefits to the needs and interests of employees who participate and to the interest of the university in the employment and retention of employees;

          (D) ability of the designated company or companies to provide rights and benefits under the contracts; and

          (E) efficacy of the contracts in the recruitment and retention of faculty and administrators;

     (3) take other actions required to ensure that the retirement programs comply with applicable provisions of 26 U.S.C. 401 — 417 (Internal Revenue Code).




Sec. 14.40.670. [Renumbered as AS 14.44.015.]
Sec. 14.40.671. Participation.
 (a) An employee in a participating position may elect to participate in a university retirement program or to participate in the appropriate state retirement system. Eligibility to participate in a program begins on an employee’s appointment to a participating position.

 (b) An election under (a) of this section to participate in a university retirement program is irrevocable. The election shall be made in writing on a form provided by the board and approved for the state by the commissioner of administration. The form must be filed with the university not later than 30 days after the date on which the employee is notified by the university that the employee is eligible to participate in the program. A copy of the form shall be delivered to the appropriate state retirement system. The election becomes irrevocable on the date it is received by the board.

 (c) Participation in a university retirement program constitutes a waiver of all rights and benefits under the state retirement systems earned on or after the effective date of the election while the employee is participating in a university retirement program.

 (d) Except as provided in (e) of this section, if a nonvested member of a state retirement system participates in a university retirement program, the employee may choose to transfer the amount in the employee’s contribution account to a university retirement program. If the employee chooses to transfer the account, the appropriate state retirement system shall pay to the university on behalf of the employee an amount equal to the balance in the account. The payment must be made within 45 days after notice of the employee’s decision to transfer the employee’s contribution account to a university retirement program is received by the state retirement system. The financial officer of the university shall immediately pay the amount received to the designated company or companies for the benefit of the employee. An employee who transfers assets under this subsection may not reclaim the corresponding service in the state retirement system if the employee is reemployed under the state retirement system.

 (e) An employee whose rights to transfer assets out of a state retirement system are subject to a qualified domestic relations order is entitled to transfer assets from the state retirement system to a university retirement program only if the requirements for receiving a refund under AS 14.25.150(b), 14.25.360, AS 39.35.200(c), or 39.35.760, as appropriate, are met.

 (f) If a vested member of a state retirement system elects to participate in a university retirement program, the employee ceases to be an active member of the state retirement system on the effective date of the participation in a university retirement program. The employee retains all benefits accrued in the state retirement system.

 (g) An employee who does not participate in a university retirement program under this section becomes or remains a member of the appropriate state retirement system.

 (h) Notwithstanding (b) of this section, the university may offer an employee who made an election not to participate in an optional university retirement program at the time the employee was eligible to participate in the program an option to enroll in a different university retirement program.




Sec. 14.40.680. [Renumbered as AS 14.44.020.]
Sec. 14.40.681. Retirement system membership.
An employee participating in a university retirement program may not participate in a state retirement system during the time the employee is employed in a participating position. If the employee is later employed in a position covered by a state retirement system that is not a participating position, the employee may not continue to participate in a university retirement program and shall begin to participate in the state retirement system.


Secs. 14.40.685 — 14.40.690. [Renumbered as AS 14.44.025 — 14.44.030.]
Sec. 14.40.691. Contributions.
 (a) The university shall contribute on behalf of each employee participating in the program an amount established by the board.

 (b) An employee participating in the program shall contribute to the program an amount established by the board.

 (c) The board may specify that contributions required by this section are made by a reduction in salary under 26 U.S.C. 403(b) or 26 U.S.C. 414(h)(2) (Internal Revenue Code).

 (d) The financial officer of the university shall pay the contributions authorized or required by this section to the designated company or companies for the benefit of each participant.




Secs. 14.40.695 — 14.40.700. [Renumbered as AS 14.44.035 — 14.44.050.]
Sec. 14.40.701. Benefits.
Payment of benefits to participants of the program is the responsibility of the company or companies designated by the board and is not the responsibility of the board, the university, or the state. The benefits are payable to participants or their beneficiaries in accordance with the terms of the applicable retirement plan document.


Sec. 14.40.710. Terms and provisions of Compact. [Repealed, § 7 ch 24 SLA 1979.]
Secs. 14.40.710 — 14.40.720. [Renumbered as AS 14.44.055 — 14.44.060.]
Sec. 14.40.730. Members of commission. [Repealed, § 7 ch 24 SLA 1979.]
Sec. 14.40.750. Fund created. [Repealed, § 2 ch 98 SLA 1971.]
Secs. 14.40.751 — 14.40.759. [Renumbered as AS 14.43.090 — 14.43.110.]
Sec. 14.40.760. Limits on grants and loans. [Repealed, § 2 ch 98 SLA 1971.]
Secs. 14.40.761 — 14.40.769. [Renumbered as AS 14.43.115 — 14.43.135.]
Sec. 14.40.770. Renewal preference. [Repealed, § 2 ch 98 SLA 1971.]
Sec. 14.40.771. [Renumbered as AS 14.43.140.]
Sec. 14.40.773. Definitions. [Repealed, § 6 ch 156 SLA 1972.]
Sec. 14.40.775. Conditions of grants. [Repealed, § 2 ch 98 SLA 1971.]
Sec. 14.40.776. Tuition grants. [Repealed, § 15 ch 94 SLA 1980.]
Sec. 14.40.780. Conditions of loans. [Repealed, § 2 ch 98 SLA 1971.]
Secs. 14.40.781 — 14.40.786. Limitation on grants; conditions of grants. [Repealed, § 15 ch 94 SLA 1980.]
Sec. 14.40.790. Eligibility of students. [Repealed, § 2 ch 98 SLA 1971.]
Secs. 14.40.791 — 14.40.796. Eligibility of students; application and certification. [Repealed, § 15 ch 94 SLA 1980.]
Sec. 14.40.799. Definitions.
In AS 14.40.661 — 14.40.799,
     (1) “appropriate state retirement system” means the state retirement system that includes the employee’s position;

     (2) “board” means the Board of Regents of the University of Alaska;

     (3) “contribution account” means the member contribution account under AS 14.25.009 — 14.25.220, the individual account under AS 14.25.310 — 14.25.590, the employee contribution account under AS 39.35.095 — 39.35.680, or the individual account under AS 39.35.700 — 39.35.990, whichever is appropriate;

     (4) “employee” means an employee of the University of Alaska or a community college under AS 14.40;

     (5) “participating position” means a position that is a permanent position that is at least a .5 full-time appointment and is included in the applicable retirement plan document;

     (6) “program” means a university retirement program;

     (7) “state retirement system” means the teachers’ retirement system under AS 14.25 or the public employees’ retirement system under AS 39.35;

     (8) “university” means the University of Alaska.




Sec. 14.40.800. Selection of criteria. [Repealed, § 2 ch 98 SLA 1971.]
Sec. 14.40.801. Fiscal and business management practices. [Repealed, § 7 ch 246 SLA 1976.]

Article 6. Alaska Higher Education Savings Trust and Alaska Advance College Tuition Savings Fund.


Sec. 14.40.802. Alaska Higher Education Savings Trust.
 (a) The Alaska Higher Education Savings Trust is established in the University of Alaska. The purpose of this trust is to secure obligations to participants and beneficiaries under a postsecondary education savings program operated by the University of Alaska and to provide participants a convenient method of saving for college or other postsecondary education. The Board of Regents of the University of Alaska shall
     (1) adopt policies that provide for the administration, management, promotion, and marketing of the trust;

     (2) maintain the trust in compliance with requirements of 26 U.S.C. (Internal Revenue Code) for a qualified state tuition program as defined in 26 U.S.C. 529;

     (3) coordinate savings options established under the trust and the administration of the trust with the Alaska advance college tuition savings fund (AS 14.40.803), including the creation of common administrative and record-keeping systems, marketing programs, and operating reserves;

     (4) establish participation agreements, including application, savings options, and withdrawal procedures;

     (5) enter into participation agreements with participants for the
          (A) accumulation, investment, and distribution of funds;

          (B) payment or reimbursement of qualified higher education expenses; and

          (C) benefit of a beneficiary;

     (6) enter into contracts with one or more contractors, including investment managers; in determining the persons to act as investment managers, consideration must be given to the qualifications of the contractor, including the contractor’s ability to
          (A) administer financial programs with individual account maintenance and reporting;

          (B) develop, market, and administer investment options appropriate for the trust; and

          (C) augment the savings program with other beneficial products and services;

     (7) allow both residents and nonresidents to participate in the trust;

     (8) allow the transfer or rollover of funds from the Alaska advance college tuition savings fund and other qualified state tuition programs under 26 U.S.C. 529 and the participation agreement;

     (9) allow withdrawals from the trust to be used for qualified higher education expenses, including room and board as allowed by 26 U.S.C. 529;

     (10) establish penalties for withdrawals from the trust for nonqualified expenses and other distributions as required under 26 U.S.C. 529 or as provided in the participation agreement;

     (11) engage an independent firm of certified public accountants to audit the financial position of the trust.

 (b) The board may
     (1) divide the trust into multiple investment portfolios;

     (2) commingle amounts credited to some or all accounts for investment purposes;

     (3) establish trusts and accounts as the board considers appropriate under 26 U.S.C. 529;

     (4) require trust participants to pay all administrative fees;

     (5) establish earnings reserves as provided in the participation agreement, including reserves for the payment of administrative costs.

 (c) The University of Alaska, the board, the state, or an agency of the state is not liable for a loss of funds that are invested under a participation agreement or for the denial of a perceived tax or other benefit. The board shall provide written notice to each applicant that there is no guarantee of any rate of return or benefit and that any risk of loss in account value or other benefit rests exclusively with the participant and the beneficiary.

 (d) Notwithstanding any other provision of law, earnings on funds deposited with the trust are not subject to taxation by the state or a municipality.

 (e) Except for needs-based scholarships, funds on deposit with the trust may not be considered by the University of Alaska or an agency of the state to limit eligibility for a state-funded scholarship.

 (f) A participant has the right, as provided in the participation agreement, to
     (1) change the beneficiary of an account to another individual who is a member of the family of the former beneficiary; or

     (2) direct that all or a portion of an account be transferred to an account with a new beneficiary if the new beneficiary is a member of the family of the former beneficiary.

 (g) The right to change the beneficiary or to transfer between accounts described in (f) of this section may be denied or limited as provided in the participation agreement, including transfers that would result in contributions or account balances in excess of allowable limits under the participation agreement.

 (h) Except as provided under AS 34.40.110(b)(4), an account established under this section
     (1) is exempt from a claim by the creditors of a participant or of a beneficiary;

     (2) is conclusively presumed to be a spendthrift trust;

     (3) is not an asset or property of either the participant or the beneficiary;

     (4) may not be assigned, pledged, or otherwise used to secure a loan or other advancement;

     (5) is not subject to involuntarily transfer or alienation.

 (i) Except as permitted in 26 U.S.C. 529, a participant or beneficiary may not directly or indirectly direct the investment of an account or earnings on the account.

 (j) A participant may, as provided in the participation agreement, designate a person other than the participant as a successor participant. The designation of a successor participant does not take effect until the participant dies or is declared legally incompetent. If a participant dies or is declared legally incompetent without having effectively designated a successor participant, the beneficiary may designate a successor participant in the manner prescribed above if the beneficiary is not the same person as the successor participant.

 (k) The trust, a participation agreement, and this section are intended to comply with the requirements of 26 U.S.C. 529 and shall be interpreted in that manner to the extent permitted by law.

 (l) The trust and participation agreements may be modified or amended on a retroactive basis in order to maintain compliance with 26 U.S.C. (Internal Revenue Code) and to maintain efficient operation of the trust as determined by the board.

 (m) A name, address, or other information identifying a person as a participant or beneficiary in the trust is confidential.

 (n) In this section,
     (1) “account” means an individual trust account established under this section;

     (2) “beneficiary” means any person designated by a participation agreement, or by another method of designation authorized in this section, to benefit from payments for qualified higher education expenses at an eligible educational institution;

     (3) “board” means the Board of Regents of the University of Alaska;

     (4) “member of the family” has the meaning given in 26 U.S.C. 529(e);

     (5) “participant” means a person who has entered into a participation agreement or has been appointed as a participant as provided in this section and in the participation agreement;

     (6) “participation agreement” means an agreement between a participant and the board providing for the establishment by the participant of one or more accounts under this section and for the administration of those accounts for the benefit of the participant and the beneficiary;

     (7) “qualified higher education expenses” has the meaning given in 26 U.S.C. 529(e);

     (8) “trust” means the Alaska Higher Education Savings Trust.




Sec. 14.40.803. Alaska advance college tuition savings fund.
 (a) The Alaska advance college tuition savings fund is established as a nonlapsing fund of the University of Alaska. The purpose of the fund is to secure obligations to participants under a postsecondary education savings program operated by the University of Alaska and to enhance the ability of the university to provide (1) higher education for the people of the state; (2) wide and affordable access to higher education for residents and their children; (3) an incentive for residents to achieve higher academic standards in grades 7 — 12; and (4) an incentive for residents to continue and complete secondary and postsecondary education. The fund may be divided into separate accounts for accounting purposes.

 (b) The fund consists of
     (1) permanent fund dividend and cash contributions made under AS 14.40.807 under the terms of an advance college tuition savings contract;

     (2) appropriations, gifts, bequests, and contributions; and

     (3) income and earnings of the fund.

 (c) Assets of the fund shall be expended to make payments to the university and other eligible educational institutions, including payments for refunds, redemptions, and awards under a savings contract or scholarships, costs of administration, and other obligations of the fund.




Sec. 14.40.805. Powers and duties of the commissioner of revenue. [Repealed, § 14 ch 3 SLA 2000.]
Sec. 14.40.806. [Renumbered as AS 14.43.160.]
Sec. 14.40.807. Contribution to the Alaska Advance College Tuition Savings Fund.
 (a) Contributions to the fund under the terms of an advance college tuition savings contract may be made by direct cash payments or by contributions from the permanent fund dividend. The Department of Revenue shall
     (1) prepare the permanent fund dividend application to allow an applicant or a parent, legal guardian, or other authorized representative of an applicant who is an unemancipated minor to contribute 50 percent of a dividend to the fund; and

     (2) include with each application for a permanent fund dividend an explanation of the advance college tuition savings program, including the right to receive a refund, a disclosure of the potential tax liability of the fund, and disclosure of the possible general effect of the tax liability on the advance college tuition savings program.

 (b) The Department of Revenue shall pay contributions directly to the fund.

 (c) In order to assure the actuarial soundness of the fund, the legislature may appropriate annually to the fund the sum, certified by the board to the governor and the legislature, that is necessary to restore the fund to an amount that is actuarially sound. The board annually, before January 30, shall make and deliver to the governor and to the legislature a certificate stating the sum required to restore the fund to an amount that is actuarially sound, and that sum may be appropriated and paid to the fund during that fiscal year. This subsection does not create a debt or liability of the state.




Sec. 14.40.809. Powers and duties of the University of Alaska.
 (a) The Board of Regents of the University of Alaska may contract with a purchaser for the purchase of advance college tuition credits for the payment of tuition and other qualified higher education expenses for a beneficiary of any age to attend a branch of the university or other eligible educational institution to which the beneficiary is admitted. A purchaser and a beneficiary may be the same person.

 (b) The board shall
     (1) make appropriate arrangements as necessary to fulfill the board’s obligations under an advance college tuition savings contract;

     (2) establish and adopt a formal plan for administration of the advance college tuition savings program; the terms and conditions of the plan shall be considered a part of an advance college tuition savings contract;

     (3) establish investment objectives, criteria, and asset allocation guidelines for the fund based on prudent institutional investor guidelines and actuarial analysis of the earnings requirements for the advance college tuition savings plan;

     (4) enter into contracts or agreements considered necessary for the investment of the fund, including contracts or agreements with investment managers, consultants, and other custodians of the fund;

     (5) engage a financial advisor to report annually on the investment performance of the fund;

     (6) engage an independent firm of certified public accountants to audit the financial position of the fund;

     (7) do all acts, whether or not expressly authorized, that the board considers necessary or proper in administering the assets of the fund;

     (8) enter into reciprocal agreements with Alaska Pacific University and other eligible educational institutions or state tuition programs that the board determines to be beneficial to the advance college tuition savings program;

     (9) coordinate savings options established under the Alaska advance college tuition savings program and the administration of the fund with the Alaska Higher Education Savings Trust (AS 14.40.802) including the creation of common administrative and record-keeping systems, marketing programs, and operating reserves.




Sec. 14.40.810. [Renumbered as AS 14.43.250.]
Sec. 14.40.811. Advance college tuition savings contracts.
 (a) An advance college tuition savings contract must set out or include by reference to the plan
     (1) the name and date of birth of the purchaser and the beneficiary under the contract;

     (2) the number of advance college tuition credits purchased under the contract;

     (3) the terms and conditions under which the contract may be terminated and refunds made;

     (4) the assumption of a contractual obligation by the board to provide funding for specified education benefits for the beneficiary in accordance with the terms of the plan;

     (5) the period of time during which the beneficiary may receive the benefits of the contract; and

     (6) other terms and conditions the board determines to be appropriate or that are required under 26 U.S.C. (Internal Revenue Code).

 (b) An advance college tuition savings contract may be terminated
     (1) if the board determines that the number of purchasers is insufficient to maintain the fund on an actuarially sound basis; or

     (2) under other circumstances determined by the board and set out in the advance tuition savings contract or in the plan.




Sec. 14.40.815. [Renumbered as AS 14.43.255.]
Sec. 14.40.817. Definitions.
In AS 14.40.803 — 14.40.817,
     (1) “advance college tuition savings contract” or “contract” means a contract entered into by the board and a purchaser to provide for the qualified higher education expenses of a beneficiary;

     (2) “beneficiary” means a designated beneficiary as defined under 26 U.S.C. 529(e)(1) (Internal Revenue Code);

     (3) “board” means the Board of Regents of the university;

     (4) “eligible educational institution” has the meaning given in 26 U.S.C. 135(c)(3) (Internal Revenue Code);

     (5) “fund” means the Alaska advance college tuition savings fund established under AS 14.40.803;

     (6) “plan” means the formal plan for administration of an advance college tuition savings program adopted by the board under AS 14.40.809(b);

     (7) “purchaser” means the person who is named in the contract and has the rights conferred upon a purchaser under an advance college tuition savings contract;

     (8) “qualified higher education expenses” has the meaning given in 26 U.S.C. 529(e)(3) (Internal Revenue Code);

     (9) “university” means the University of Alaska, including a community college affiliated with the university.




Sec. 14.40.820. [Renumbered as AS 14.43.300.]
Sec. 14.40.821. Creation and termination of corporation. [Repealed, E.O. No. 115, § 4 (2011). For current law see AS 26.27.010.]
Sec. 14.40.825. [Renumbered as AS 14.43.305.]
Sec. 14.40.826. Board of directors. [Repealed, E.O. No. 115, § 4 (2011). For current law see AS 26.27.020.]
Sec. 14.40.830. [Renumbered as AS 14.43.310.]
Sec. 14.40.831. Chair and vice-chair. [Repealed, E.O. No. 115, §4 (2011). For current law see AS 26.27.030.]
Sec. 14.40.835. [Renumbered as AS 14.43.315.]
Sec. 14.40.836. Meetings; staff. [Repealed, E.O. No. 115, § 4 (2011). For current law see AS 26.27.040.]
Sec. 14.40.840. [Renumbered as AS 14.43.320.]
Sec. 14.40.841. Alaska Aerospace Corporation fund. [Repealed, E.O. No. 115, § 4 (2011). For current law see AS 26.27.050.]
Sec. 14.40.845. [Renumbered as AS 14.43.325.]
Sec. 14.40.846. Insurance coverage; safety program. [Repealed, E.O. No. 115, § 4 (2011). For current law see AS 26.27.060.]
Sec. 14.40.849. Definitions. [Repealed, § 2 ch 98 SLA 1971.]
Sec. 14.40.850. Declaration of purpose. [Repealed, § 22 ch 136 SLA 1974.]
Sec. 14.40.851. Space activities location. [Repealed, E.O. No. 115, § 4 (2011). For current law see AS 26.27.070.]
Sec. 14.40.855. Fund created. [Repealed, § 22 ch 136 SLA 1974.]
Sec. 14.40.856. Licenses and permits. [Repealed, E.O. No. 115, § 4 (2011). For current law see AS 26.27.080.]
Sec. 14.40.860. Limits on loans and grants. [Repealed, § 22 ch 136 SLA 1974.]
Sec. 14.40.861. Purpose of the corporation. [Repealed, E.O. No. 115, § 4 (2011). For current law see AS 26.27.090.]
Sec. 14.40.865. Conditions of loans and grants. [Repealed, § 22 ch 136 SLA 1974.]
Sec. 14.40.866. Powers and duties of the corporation. [Repealed, E.O. No. 115, § 4 (2011). For current law see AS 26.27.100.]
Sec. 14.40.870. Repayment of loans. [Repealed, § 22 ch 136 SLA 1974.]
Sec. 14.40.871. Regulations. [Repealed, E.O. No. 115, § 4 (2011). For current law see AS 26.27.110.]
Sec. 14.40.875. Selection criteria. [Repealed, § 22 ch 136 SLA 1974.]
Sec. 14.40.876. Exercise by corporation of powers within municipalities. [Repealed, E.O. No. 115, § 4 (2011). For current law see AS 26.27.120.]
Sec. 14.40.880. Discrimination prohibited. [Repealed, § 22 ch 136 SLA 1974.]
Sec. 14.40.881. Trade secrets confidential. [Repealed, E.O. No. 115, § 4 (2011). For current law see AS 26.27.130.]
Sec. 14.40.885. Administering authority. [Repealed, § 22 ch 136 SLA 1974.]
Sec. 14.40.886. Approval of projects by legislature. [Repealed, E.O. No. 115, § 4 (2011). For current law see AS 26.27.140.]
Sec. 14.40.890. Funding. [Repealed, § 22 ch 136 SLA 1974.]
Sec. 14.40.891. Issuance of bonds, notes, and refunding bonds. [Repealed, E.O. No. 115, § 4 (2011). For current law see AS 26.27.150.]
Sec. 14.40.896. Security for bonds. [Repealed, E.O. No. 115, § 4 (2011). For current law see AS 26.27.160.]
Sec. 14.40.899. Limitation of liability on bonds. [Repealed, E.O. No. 115, § 4 (2011). For current law see AS 26.27.170.]
Sec. 14.40.900. Contractual agreements. [Repealed, § 2 ch 98 SLA 1971.]
Sec. 14.40.901. [Renumbered as AS 14.42.010.]
Sec. 14.40.902. Issuance and sale of bonds and notes. [Repealed, E.O. No. 115, § 4 (2011). For current law see AS 26.27.180.]
Secs. 14.40.903 — 14.40.905. [Renumbered as AS 14.42.015 — 14.42.020.]
Sec. 14.40.906. Bonds exempt from taxes. [Repealed, E.O. No. 115, § 4 (2011). For current law see AS 26.27.190.]
Sec. 14.40.907. [Renumbered as AS 14.42.025.]
Sec. 14.40.908. Independent financial advisor. [Repealed, E.O. No. 115, § 4 (2011). For current law see AS 26.27.200.]
Sec. 14.40.909. [Renumbered as AS 14.42.030.]
Sec. 14.40.910. Exceptions. [Repealed, § 2 ch 98 SLA 1971.]
Sec. 14.40.911. [Renumbered as AS 14.42.035.]
Sec. 14.40.912. Additional powers to secure bonds or obligations under leases. [Repealed, E.O. No. 115, § 4 (2011). For current law see AS 26.27.210.]
Secs. 14.40.913 — 14.40.915. [Renumbered as AS 14.42.040 — 14.42.045.]
Sec. 14.40.916. Right of obligee of corporation to bring injunction. [Repealed, E.O. No. 115, § 4 (2011). For current law see AS 26.27.220.]
Secs. 14.40.917 — 14.90.919. [Renumbered as AS 14.42.050 — 14.42.055.]
Sec. 14.40.920. [Renumbered as AS 14.43.080.]
Sec. 14.40.921. Power of corporation to confer upon obligee right to bring action or proceeding. [Repealed, E.O. No. 115, § 4 (2011). For current law see AS 26.27.230.]
Sec. 14.40.926. Exemption of real property of corporation from execution or other process. [Repealed, E.O. No. 115, § 4 (2011). For current law see AS 26.27.240.]
Sec. 14.40.930. [Renumbered as AS 14.43.400.]
Sec. 14.40.931. Power of corporation to obtain federal aid and cooperation. [Repealed, E.O. No. 115, § 4 (2011). For current law see AS 26.27.250.]
Sec. 14.40.935. [Renumbered as AS 14.43.405.]
Sec. 14.40.936. Exemption from taxes and assessments. [Repealed, E.O. No. 115, § 4 (2011). For current law see AS 26.27.260.]
Sec. 14.40.940. [Renumbered as AS 14.43.410.]
Sec. 14.40.941. Disposal of surplus property. [Repealed, E.O. No. 115, § 4 (2011). For current law see AS 26.27.270.]
Sec. 14.40.945. [Renumbered as AS 14.43.415.]
Sec. 14.40.946. Public loans or donations to or cooperation with corporation. [Repealed, E.O. No. 115, § 4 (2011). For current law see AS 26.27.280.]
Sec. 14.40.950. [Renumbered as AS 14.43.420.]
Sec. 14.40.951. Reserve fund. [Repealed, E.O. No. 115, § 4 (2011). For current law see AS 26.27.290.]
Sec. 14.40.956. Cooperation with other authorities. [Repealed, E.O. No. 115, § 4 (2011). For current law see AS 26.27.300.]
Sec. 14.40.960. [Renumbered as AS 14.43.500.]
Sec. 14.40.961. Investment of revenue. [Repealed, E.O. No. 115, § 4 (2011). For current law see AS 26.27.310.]
Sec. 14.40.966. Legality of corporation bonds as investments. [Repealed, E.O. No. 115, § 4 (2011). For current law see AS 26.27.320.]
Sec. 14.40.990. Definitions. [Repealed, E.O. No. 115, § 4 (2011). For current law see AS 26.27.900.]

Article 1. Alaska Commission on Postsecondary Education.


Chapter 42. Postsecondary Education Commission and Loan Corporation.

Sec. 14.42.010. Purpose, intent.
 (a) [Repealed, § 42 ch 85 SLA 2001.]
 (b) The legislature affirms that the legal authority for the operation and management of the statewide university system remains with the Board of Regents of the University of Alaska and the legal authority for the operation and management of other postsecondary educational programs remains with the governing boards of the other private nonprofit and proprietary institutions in the state.




Sec. 14.42.015. Creation, composition, appointment of members.
 (a) There is in the Department of Education and Early Development the Alaska Commission on Postsecondary Education consisting of
     (1) two members of the Board of Regents of the University of Alaska designated by the members of that body;

     (2) one person representing private nonprofit higher education in the state appointed by the governor;

     (3) one person representing the Department of Education and Early Development selected by the state Board of Education and Early Development;

     (4) four persons broadly and equitably representative of the general public appointed by the governor;

     (5) one member of the Alaska Workforce Investment Board established by AS 23.15.550 designated by the members of that body;

     (6) one person from the members of the local community college advisory councils appointed by the governor;

     (7) two members from the legislature, one of whom shall be appointed by the president of the senate and one by the speaker of the house of representatives;

     (8) one person appointed in accordance with (e) of this section who is a full-time student as defined in AS 14.43.160;

     (9) one administrator appointed by the governor from a proprietary institution of postsecondary education that has an authorization to operate in the state issued under AS 14.48.

 (b) No governing body member, trustee, official, or employee of either a public, private, or proprietary institution of postsecondary or higher education in the state may be appointed to membership on the commission as representative of the general public for the purpose of (a)(4) of this section.

 (c) The governor’s appointees are subject to confirmation by the legislature and shall serve at the pleasure of the governor for four-year staggered terms. Members appointed or designated by bodies or agencies other than the governor serve at the pleasure of the appointing authority. Vacancies shall be filled in the same manner as original appointment.

 (d) A full-time postsecondary student shall be appointed to the Alaska Commission on Postsecondary Education from a list of nominees submitted to the governor. The governor shall make the appointment from the list within 60 days after it is submitted. The list must consist of the names of two or more nominees from private nonprofit institutions of higher education in the state and two nominees from each campus of the University of Alaska. The nominees shall be selected by the students at private nonprofit institutions of higher education and each campus of the University of Alaska by an election held on each campus. Elections under this subsection shall be held concurrently with student regent elections required under AS 14.40.150(b) and conducted under rules established by the Office of the Governor. If a private nonprofit institution of higher education in the state does not have an organized student governance structure to hold elections, the institution’s governing board may nominate a full-time student and forward the name to the governor for consideration. The term of office of the student member of the commission is two years and begins June 1 of the year in which the appointment is made. Membership on the commission is immediately forfeited by a student member who ceases to be a full-time student. Within 60 days after a vacancy occurs, the governor shall appoint a successor from those students appearing on the list of nominees to serve for the unexpired term of the original appointee. The term “campus” used in this subsection means a portion of the University of Alaska designated as a “campus” by the Board of Regents.

 (e) For the purpose of (a)(4) of this section, “broadly and equitably representative of the general public” means that the public membership of the commission shall include adequate representation both on the basis of sex and on the basis of the significant racial, ethnic, geographic, and economic groups in the state.




Sec. 14.42.020. Officers.
The chairman and vice-chairman shall be elected from among the members of the commission for a one-year term. A member of the commission may not serve as chairman for more than two consecutive one-year terms.


Sec. 14.42.025. Meetings, rules, votes required.
The commission shall prescribe its own rules of procedure. The commission shall meet once quarterly at a time and place determined by the chairman, and at other times and places as the chairman, or a majority of the members of the commission, consider necessary. A quorum is a majority of the members of the commission. The votes of the commission members shall be recorded, and effective action requires the affirmative vote of a majority of the commission members present. A commission member may not, with respect to a matter before the commission, vote for or on behalf of, or in any way exercise the vote of, another member of the commission.


Sec. 14.42.030. Functions, duties, and powers of the commission.
 (a) The commission has the following functions, advisory to the governing boards of institutions of public and private higher education in this state, to the governor, the legislature, and to other appropriate state and federal officials:
     (1) coordinate the development of comprehensive plans for the orderly, systematic growth of public and private postsecondary education, including community colleges and occupational education, in the state and submit recommendations on the need for, and location of, new facilities and programs;

     (2) review and advise as to the efficiency and effectiveness of all consortia and other cooperative agreements between the institutions of public and private higher education in the state that are parties to them.

 (b) The commission shall
     (1) administer the financial aid and interstate education compact programs under AS 14.43.091 — 14.43.920 and 14.43.990, and AS 14.44;

     (2) administer the provisions of AS 14.48 concerning regulation of postsecondary educational institutions;

     (3) resolve disputes under a consortium or other cooperative agreement between institutions of public and private higher education in the state; and

     (4) serve as the state agency required under 20 U.S.C. 1001 — 1155.

 (c) [Repealed, § 42 ch 85 SLA 2001.]
 (d) [Renumbered as AS 14.42.033.]
 (e) The commission may
     (1) adopt regulations under AS 44.62 (Administrative Procedure Act) to
          (A) carry out the purposes of
               (i) AS 14.43.091 — 14.43.849, 14.43.990, AS 14.44, and AS 14.48; and

               (ii) AS 14.43.910 and 14.43.920 as they relate to the purposes of AS 14.43.091 — 14.43.849, 14.43.990, AS 14.44, and AS 14.48;

          (B) ensure compliance with the requirements imposed by state and federal statutes and regulations governing the guaranty, insurance, purchase, or other dealings in eligible loans by federal agencies, instrumentalities, or corporations; and

          (C) establish standards for the
               (i) administration of hearings conducted under AS 14.43.153; and

               (ii) administrative enforcement of collection orders under AS 14.43.151 — 14.43.155;

     (2) delegate to the executive director of the commission or a subcommittee of the commission any duty imposed on or power granted to the commission by this chapter, AS 14.43, AS 14.44, or AS 14.48, except its power to adopt regulations and its duty to consider appeals under AS 14.43.100(b) and AS 14.48.120;

     (3) establish task forces, committees, or subcommittees, not necessarily consisting of commission members, to advise and assist the commission in carrying out its functions;

     (4) contract with or use existing institutions of postsecondary education or other individuals or organizations to make studies, conduct surveys, submit recommendations, or otherwise contribute to the work of the commission;

     (5) establish fees for the review of an out-of-state institution that
          (A) requests approval for participation in the programs under AS 14.43.091 — 14.43.750, 14.43.990, and AS 14.44; and

          (B) is not accredited by a national or regional accreditation association recognized by the Council for Higher Education Accreditation;

     (6) collect all fees and costs incurred in collection of the amount owed on a loan or repayment obligation if the loan or repayment obligation becomes delinquent or in default; in this paragraph, fees and costs include attorney fees, court costs, and collection fees charged by a collection agency; and

     (7) if approved by the department, receive and analyze performance data for students in grades kindergarten through 12 and enter into contracts for the purpose of assessing education outcomes.




Sec. 14.42.032. Limitation on awarding loans. [Repealed, § 26 ch 5 SLA 1996.]
Sec. 14.42.033. Agreements for medical education.
The commission shall enter into agreements with government or postsecondary education officials of this state or other states to provide postsecondary educational services and programs to Alaska residents pursuing a medical education degree sufficient to accommodate at least 20 new program participants each year. An agreement with another state must be limited to services and programs that are unavailable in Alaska. The commission shall require a person participating in a medical education program offered under this section to agree to the repayment condition imposed under AS 14.43.510.


Sec. 14.42.035. Collection of data.
The commission may require the institutions of public and private higher education and other institutions of postsecondary education in the state to submit data on costs, selection, and retention of students, enrollments, education outcomes, plant capacities and use, and other matters pertinent to effective planning and coordination, and shall furnish information concerning these matters to the governor, to the legislature, and to other state and federal agencies as requested by them.


Sec. 14.42.040. Executive officer and staff; administration.
 (a) The commission may appoint an executive director as the commission’s executive officer. The executive officer is a member of the exempt service under AS 39.25.110, serves at the pleasure of the commission, and receives compensation fixed by the commission. The executive officer appoints persons to the staff positions authorized by the commission, and staff compensation is fixed by the commission. Each employee of the commission shall elect membership either in the state teachers’ retirement system (AS 14.25), if qualified, or in the public employees’ retirement system (AS 39.35).

 (b) The Alaska Commission on Postsecondary Education is not a division in the Department of Education and Early Development. The commission, its members, executive officer, and staff are in the Department of Education and Early Development for administrative support services only, and they are not subject to the direction of the commissioner of education and early development or the state Board of Education and Early Development.




Sec. 14.42.045. Compensation and per diem.
Members of the commission serve without compensation but are entitled to per diem and travel expenses as may be authorized by law for boards and commissions.


Sec. 14.42.050. Legal counsel.
 (a) The attorney general is legal counsel for the commission. The attorney general shall advise the commission in legal matters arising in the discharge of its duties and represent the commission in actions to which it is a party. If, in the opinion of the commission, the public interest is not adequately represented by counsel in a proceeding, the attorney general, upon request of the commission, shall represent the public interest.

 (b) The commission may employ temporary legal counsel from time to time in matters in which the commission is involved.




Sec. 14.42.055. Consortia.
All parties that are signatory to a consortium agreement between the University of Alaska and a private university or college must abide by a decision rendered by the commission when disagreements arise or exist between the parties. For purposes of this section and AS 14.42.030, “consortium” means a cooperative arrangement between two or more public or private institutions of postsecondary education specified in agreements or memoranda of understanding to permit sharing of facilities, instructional opportunities, and other educational services in such a way that the integrity of each institution party to the consortium is preserved while at the same time the institutions cooperatively plan the academic calendar, scheduling, use of personnel and facilities, and educational programs and offerings to the maximum advantage of the students and faculties of the institutions that are parties to a consortium.


Article 2. Alaska Student Loan Corporation.


Sec. 14.42.100. Creation of Alaska Student Loan Corporation.
There is created the Alaska Student Loan Corporation. The corporation is a public corporation and government instrumentality within the Department of Education and Early Development but having a legal existence independent of and separate from the state. The corporation may not be terminated as long as it has bonds, notes, or other obligations outstanding. Upon termination of the corporation, its rights and property pass to the state.


Sec. 14.42.110. Purpose of corporation. [Repealed, § 31 ch 63 SLA 2004.]
Sec. 14.42.120. Corporation governing body.
 (a) The corporation shall be governed by a board of directors appointed by the governor consisting of two members of the Alaska Commission on Postsecondary Education, each of whom is selected for the commission under AS 14.42.015(a)(1) — (2), (4) — (6), (8), or (9) and the commissioner of revenue, the commissioner of administration, and the commissioner of commerce, community, and economic development. Members of the board serve without compensation but the members who are also members of the Alaska Commission on Postsecondary Education are entitled to per diem and travel expenses authorized by law for boards and commissions under AS 39.20.180.

 (b) The board shall elect a chairman from among its membership at its annual meeting each year. A majority of the members constitute a quorum for organizing the board, conducting its business, and exercising the powers of the corporation.




Sec. 14.42.130. Meetings of the board.
 (a) The board shall meet at the call of its chairman and at other times as the board may determine in accordance with its regulations.

 (b) Public notice of a meeting of the board at which the issuance of corporation bonds is authorized shall be provided at least 24 hours before the meeting.




Sec. 14.42.140. Minutes of meetings.
The board shall keep minutes of each meeting and send a certified copy to the governor and to the Legislative Budget and Audit Committee.


Sec. 14.42.150. Administration of affairs.
The board shall manage the assets and business of the corporation and may adopt bylaws and regulations, in accordance with AS 44.62 (Administrative Procedure Act), governing the manner in which the business of the corporation is conducted and the manner in which its powers are exercised. The board shall delegate supervision of the administration of the corporation to the executive officer of the corporation.


Sec. 14.42.160. Executive officer.
The executive officer of the Commission on Postsecondary Education appointed under AS 14.42.040(a) shall serve as executive officer of the corporation. The board shall prescribe the duties of the executive officer.


Sec. 14.42.170. Staff.
The employees of the Alaska Commission on Postsecondary Education shall serve as staff for the corporation.


Sec. 14.42.190. Budget.
The operating budget of the corporation is subject to AS 37.07 (Executive Budget Act).


Sec. 14.42.200. General powers.
In addition to other powers granted in this chapter, the corporation may
     (1) sue and be sued in its own name;

     (2) adopt an official seal;

     (3) adopt regulations under AS 44.62 (Administrative Procedure Act) to carry out the purposes of this chapter;

     (4) make and execute agreements, contracts, and other instruments necessary or convenient in the exercise of the powers and functions of the corporation, including contracts with a person or governmental entity;

     (5) receive, take, hold, and administer, on behalf of the corporation and for any of its purposes, any appropriation, gift, grant, bequest, devise, or donation of real property or personal property; in this paragraph, “property” includes
          (A) money; and

          (B) life estates, leases, or other interests in property;

     (6) borrow money as provided in this chapter to carry out its corporate purposes and issue its obligations as evidence of the borrowing, if that obligation of the corporation is not a debt of the state;

     (7) include in a borrowing the amounts to pay financing charges, interest on the obligations for a period not exceeding one year after the date on which the corporation estimates funds will otherwise be available to pay the interest, consultant, advisory, and legal fees, and other expenses necessary or incident to the borrowing;

     (8) invest or reinvest, subject to its contracts with noteholders and bondholders, money held by the corporation as set out in AS 37.10.071;

     (9) set and collect interest, fees, and charges in connection with education loans or repayment obligations held by the corporation and its servicing agents; in this paragraph, “charges” includes costs of financing by the corporation, service charges, insurance premiums, and other costs incurred by the corporation in carrying out its corporate purposes;

     (10) gather information on postsecondary education financial resources available to residents of this state and disseminate the information to reasonably assure that qualified residents are aware of those financial resources;

     (11) service education loans and repayment obligations held by the corporation;

     (12) finance, purchase, or participate in the financing or purchasing of education loans;

     (13) contract in advance for the financing, purchasing, or sale of education loans;

     (14) sell or participate in the sale, either public or private and on terms authorized by the board, of education loans to the Student Loan Marketing Association or to other purchasers;

     (15) collect and pay reasonable fees and charges in connection with the financing, purchase, sale, and servicing of education loans and repayment obligations;

     (16) enter into agreements with the federal government, including guaranty agreements and supplemental guaranty agreements as described in 20 U.S.C. 1001 — 1155, as amended, as necessary to provide for the receipt by the corporation of administrative allowances and other benefits available under 20 U.S.C. 1001 — 1155, as amended;

     (17) administer federal money allotted to the state involving insured education loans and related administrative costs and other matters;

     (18) enter into agreements with the commission relating to education loans and repayment obligations, the administration of the financial aid and loan programs under AS 14.43.091 — 14.43.750, 14.43.990, and AS 14.44, and the payment of and security for bonds of the corporation;

     (19) to the extent permitted under contracts with bondholders, consent to the modification of the rate of interest, time of payment of an installment of principal or interest, or other terms of an education loan or repayment obligation held by the corporation;

     (20) procure insurance against any loss in connection with the operation of its programs;

     (21) provide advisory services to borrowers and other participants in the corporation’s programs;

     (22) enter into credit facility agreements and make pledges, covenants, and agreements with respect to the repayment of borrowings under the credit facility agreements;

     (23) develop and implement education financing programs; in this paragraph, “programs” includes
          (A) programs listed in AS 14.42.030(b)(1);

          (B) programs for the guaranteeing, servicing, originating, and financing of education loans for borrowers located both inside and outside the state; and

          (C) federal financial aid programs made under federal law; and

     (24) perform acts that may be necessary or appropriate to carry out effectively the general objectives and purposes of the corporation under AS 14.42.100 — 14.42.990.




Sec. 14.42.205. Supplemental education loans: financing program.
 (a) The purpose of this section is to provide for supplemental education loan financing to assist qualified borrowers with unmet costs of attendance at a postsecondary institution approved by the commission.

 (b) The corporation may develop and establish a financing program for the Alaska supplemental education loan administered by the commission under AS 14.43.170 — 14.43.175.

 (c) The financing program established under (b) of this section
     (1) shall
          (A) provide that loans under the Alaska supplemental education loan program are medium-range and long-range fixed-rate and variable-rate loans;

          (B) require terms and conditions for loans under the Alaska supplemental education loan program as the corporation determines are useful and feasible;

          (C) be designed to
               (i) assist postsecondary institutions in this state in attracting and retaining students;

               (ii) maximize the amount of financing available by using private activity tax-exempt bond capacity as may be allocated by the state; and

     (2) except as limited by (1)(B) of this subsection, may provide for terms and conditions that are more attractive than prevailing terms and conditions available to students from other supplemental education lenders.




Sec. 14.42.210. Education loan fund and program administration.
 (a) The education loan fund is established in the corporation. The education loan fund is a trust fund to be used to carry out the purposes of AS 14.42.100 — 14.42.990, AS 14.43.091 — 14.43.175, 14.43.600 — 14.43.700, 14.43.710 — 14.43.750, 14.43.990, and AS 14.44.025. The fund consists of money or assets appropriated or transferred to the corporation for the fund and money or assets deposited in it by the corporation. The corporation may establish separate accounts in the fund.

 (b) Money and other assets of the education loan fund may be used to
     (1) secure bonds of the corporation;

     (2) pay the costs of administration of the fund;

     (3) invest in education loans and investments under AS 37.10.071;

     (4) finance programs approved under AS 14.43.091 — 14.43.175, 14.43.600 — 14.43.700, 14.43.710 — 14.43.750, or AS 14.44.040; and

     (5) pay the costs of administering and collecting the loans and repayment obligations under the financial aid programs listed in (4) of this subsection.

 (c) The financial aid programs listed in (b)(4) of this section shall be administered by the commission. The corporation and the commission may enter into agreements relating to the administration of the programs. The corporation may assign its rights under the agreements for the benefit and security of holders of its bonds.

 (d) The corporation may provide for terms and conditions for use of the education loan fund that are more favorable than prevailing terms and conditions available to students from other education lenders.




Sec. 14.42.215. Interest.
 (a) The corporation shall set the interest rate on a loan financed by the corporation under AS 14.43.091 — 14.43.160, 14.43.170 — 14.43.175, 14.43.710 — 14.43.750, and AS 14.44.040. Interest on a loan accrues from the time the loan is disbursed.

 (b) A borrower may elect to make payments of interest that accrues during the borrower’s term of attendance at the postsecondary institution or during authorized deferment periods; however, any unpaid interest shall be capitalized as part of the principal to be repaid as agreed, or upon graduation, withdrawal, or completion of the deferment period.




Sec. 14.42.220. Bonds of the corporation.
 (a) The corporation may borrow money and may issue bonds, on which the principal and interest are payable from its income and receipts or other assets or a designated part or parts of them. The corporation may use the proceeds of its bonds for any purposes that the corporation considers appropriate, including providing money to
     (1) make or purchase education loans;

     (2) finance programs identified in AS 14.42.210;

     (3) finance projects of the state as those projects may be identified by law; and

     (4) pay for any other purpose or program of the corporation that is authorized in AS 14.42.100 — 14.42.310.

 (b) Bonds may be authorized only by resolution of the board. Bonds shall be dated, bear interest at the rate or rates, be in the denominations, be in the form, either coupon or registered, carry the registration privileges, be executed in the manner, be payable in the medium of payment, at the place or places, be subject to the terms of redemption, and mature as provided by the resolution or a subsequent resolution. However, a bond may not mature more than 40 years after the date it is issued.

 (c) Bonds of the corporation, regardless of form or character, are negotiable instruments for all the purposes of AS 45.01 — AS 45.08, AS 45.12, AS 45.14, and AS 45.29 (Uniform Commercial Code).

 (d) Bonds of the corporation may be sold at public or private sale in the manner, for the price or prices, and at the time or times that the board determines.

 (e) The superior court has jurisdiction to hear and determine proceedings relating to the corporation, including proceedings brought by or for the benefit of a bondholder or by a trustee for or other representative of a bondholder.

 (f) [Repealed, § 31 ch 63 SLA 2004.]
 (g) The corporation may not issue bonds to finance projects under (a)(3) of this section in an aggregate amount that exceeds $280,000,000.




Sec. 14.42.230. Trust indentures and trust agreements.
An issue of bonds by the corporation may be secured by a trust indenture or trust agreement between the corporation and a corporate trustee, which may be a trust company, bank, or national banking association, with corporate trust powers, located inside or outside the state, or by a secured loan agreement or other instrument or under a resolution giving powers to a corporate trustee by means of which the corporation may
     (1) enter into agreements with the trustee or the bondholders that the board determines to be necessary or desirable, including covenants, provisions, limitations, and other agreements as to the
          (A) application, investment, deposit, use, and disposition of the proceeds of bonds of the corporation or of money or other property of the corporation or in which it has an interest;

          (B) fixing and collecting of payments and other consideration for an education loan or repayment obligation;

          (C) assignment by the corporation of its rights in an education loan or repayment obligation or in a mortgage or other security interest created with respect to an education loan or repayment obligation to a trustee for the benefit of bondholders;

          (D) terms and conditions upon which additional bonds of the corporation may be issued;

          (E) vesting in a trustee of rights, powers, duties, funds, or property in trust for the benefit of bondholders, including the right to enforce payment, performance, and other rights of the corporation or of the bondholders, under an education loan or repayment obligation or a security interest created with respect to an education loan or repayment obligation;

     (2) pledge, mortgage, or assign money, agreements, property, or other assets of the corporation either presently in hand or to be received in the future, or both; and

     (3) provide for other matters that in any way affect the security or protection of the bonds.




Sec. 14.42.240. Reserves and capital reserves.
 (a) For the purpose of securing one or more issues of bonds of the corporation, the board may establish one or more special funds, called “capital reserve funds,” and may pay into those capital reserve funds the proceeds of the sale of bonds and other money available to the corporation from other sources for the purposes of the capital reserve funds. A capital reserve fund may be established only if the board determines that the establishment of the fund would enhance the marketability of the bonds. Money in a capital reserve fund, except as provided in this section, may be used as required only for the (1) payment of the principal of, and interest on, bonds or of the sinking fund payments with respect to those bonds; (2) purchase or redemption of the bonds; or (3) payment of a redemption premium required to be paid when the bonds are redeemed before maturity. However, money in a capital reserve fund may not be withdrawn if the withdrawal would reduce the amount in the capital reserve fund to less than the capital reserve fund requirement, except for the purpose of making payment, when due, of principal, interest, or redemption premiums on the bonds when other money of the corporation is not available for the payments. Income or interest earned by, or increment to, a capital reserve fund, from the investment of all or part of the fund, may be transferred by the corporation to other funds or accounts of the corporation if the transfer does not reduce the amount of the capital reserve fund below the capital reserve fund requirement.

 (b) If the board decides to issue bonds secured by a capital reserve fund, the bonds may not be issued if the amount in the capital reserve fund is less than the capital reserve fund requirement, unless the corporation, at the time of issuance of the bonds, pledges to deposit in the capital reserve fund from the proceeds of the bonds to be issued or from other sources, an amount that, together with the amount then in the fund, is not less than the capital reserve fund requirement.

 (c) In computing the amount of a capital reserve fund for the purpose of this section, securities in which all or a portion of the fund is invested and credit facilities deposited in or credited to a capital reserve fund under (f) of this section shall be valued by a reasonable method established by the board by resolution or by trust indenture. Valuation shall include the amount of interest earned or accrued as of the date of valuation.

 (d) By January 15 of each year, the chairman of the board shall certify in writing to the governor and the legislature the amount, if any, required to restore a capital reserve fund to the capital reserve fund requirement. The legislature may appropriate to the corporation the amount certified by the chairman. The corporation shall deposit the amounts appropriated under this subsection during a fiscal year in the proper capital reserve fund. This subsection does not create a debt or liability of the state.

 (e) The board may establish reserve funds, other than capital reserve funds, to secure one or more issues of bonds of the corporation. The corporation may deposit in a reserve fund established under this subsection the proceeds of sale of its bonds and other money available from any other source. The corporation may allow a reserve fund established under this subsection to be depleted without complying with (d) of this section.

 (f) The corporation may hold in a capital reserve fund, in lieu of money and in satisfaction of all or part of a capital reserve fund requirement, irrevocable letters of credit issued by a commercial bank, surety bonds, insurance policies, and similar credit facilities.

 (g) In this section, “capital reserve fund requirement” means the amount required to be on deposit in the capital reserve fund as of the date of computation as determined by resolution of the board or by trust indenture.




Sec. 14.42.250. Validity of pledge.
It is the intention of the legislature that a pledge made in respect to bonds of the corporation shall be valid, perfected, and binding from the time the pledge is made; that the money or property so pledged and thereafter received by the corporation shall immediately be subject to the lien of the pledge without physical delivery or further act; and that the lien of the pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the corporation irrespective of whether the parties have notice. Neither the resolution, trust agreement, nor other instrument by which a pledge is created need be recorded or filed under the provisions of AS 45.01 — AS 45.08, AS 45.12, AS 45.14, and AS 45.29 (Uniform Commercial Code) to be valid, perfected, binding, or effective.


Sec. 14.42.260. Nonliability on bonds.
 (a) The members of the board and individuals executing the bonds of the corporation are not liable personally on the bonds or subject to personal liability or accountability by reason of the issuance of the bonds.

 (b) The bonds issued by the corporation do not constitute an indebtedness or other liability of the state or of a political subdivision of the state, except the corporation, but shall be payable solely from the income and receipts or other funds or property of the corporation. The corporation may not pledge the faith or credit of the state, or of a political subdivision of the state, except the corporation, to the payment of a bond. Issuance of a bond by the corporation does not directly, indirectly, or contingently obligate the state or a political subdivision of the state to apply money from, or levy or pledge any form of taxation whatever to the payment of the bond.




Sec. 14.42.265. Underwriters.
The board may select one or more underwriters for its bonds in accordance with procedures
     (1) for the award of a contract under AS 36.30.200 — 36.30.260; or

     (2) adopted by regulations of the board that are based on the competitive principles of AS 36.30.200 — 36.30.260 and are adapted to the special needs of the corporation in the selling of its bonds as determined by the board.




Sec. 14.42.270. Pledge and agreement of state.
The state pledges to and agrees with holders of bonds issued by the corporation that the state will not limit or alter the rights and powers vested in the corporation under AS 14.42.100 — 14.42.990 to fulfill the terms of a contract made by the corporation with the bondholders or in any way impair the rights and remedies of the bondholders until the bonds, together with the interest on them with interest on unpaid installments of interest, and all costs and expenses in connection with an action or proceeding by or on behalf of the bondholders, are fully met and discharged. The corporation may include this pledge and agreement of the state in a contract with bondholders.


Sec. 14.42.280. Exemption from taxation.
The real and personal property of the corporation and its assets, income, and receipts are declared to be the property of a political subdivision of the state and devoted to an essential public and governmental function and purpose, and the property, assets, income, receipts, and other interests of the corporation are exempt from all taxes and special assessments of the state or a political subdivision of the state, including municipalities, school districts, public utility districts, and other governmental units. Bonds of the corporation are declared to be issued by a political subdivision of the state and for an essential public and governmental purpose, and the bonds, interest on them, income from them, and transfer of them, and all assets, income, and receipts pledged to pay or secure the payment of the bonds, or interest on them, are exempt from taxation by or under the authority of the state, except for inheritance and estate taxes and taxes on transfers by or in contemplation of death.


Sec. 14.42.290. Bonds legal investments for fiduciaries.
The bonds of the corporation are securities in which public officers and bodies of the state, municipalities, insurance companies, insurance associations, other persons carrying on an insurance business, banks, bankers, trust companies, savings banks, savings associations, building and loan associations, investment companies, other persons carrying on a banking business, administrators, guardians, executors, trustees, other fiduciaries, and other persons who are authorized to invest in bonds or other obligations of the state, may properly and legally invest funds including capital in their control or belonging to them. Notwithstanding any other provisions of law, the bonds of the corporation are also securities that may be deposited with and may be received by public officers and bodies of the state and municipalities for any purpose for which the deposit of bonds or other obligations of the state is now or may be authorized.


Sec. 14.42.295. Payment to state.
 (a) The board may elect to pay the state a return of contributed capital, or a dividend, for each base fiscal year that the corporation’s net income equals or exceeds $2,000,000. The payment may not be less than 10 percent nor more than 35 percent, as approved by the board, of the corporation’s net income for the base fiscal year, and is subject to the provisions of any applicable bond indentures of the corporation. If a payment is authorized under this section, payment must be made available by the corporation before the end of the fiscal year in which payment has been authorized. The corporation shall notify the commissioner of revenue when the amount of the payment authorized under this section is available for appropriation.

 (b) In this section,
     (1) “base fiscal year” means the fiscal year ending two years before the end of the fiscal year in which a payment under this section is to be made available;

     (2) “contributed capital” means the assets appropriated by sec. 2, ch. 93, SLA 1987, in the form of unrestricted receipts of loans;

     (3) “dividend” means return of surplus as reflected in the equity section of the corporation’s audited financial statements for the education loan fund (AS 14.42.210);

     (4) “net income” means the corporation’s net income as set out in the audited financial statements of the corporation for the base fiscal year.




Sec. 14.42.300. Operation of certain statutes excepted.
 (a) The corporation is not a municipality as the term is defined in AS 01.10.060. Except as provided in AS 14.42.190, the corporation is not subject to AS 37. For all other purposes the corporation is a political subdivision and an instrumentality of the state.

 (b) The funds, income, and receipts of the corporation are not money of the state, nor may real property in which the corporation has an interest be considered land owned in fee by the state or to which the state may become entitled or in any way land belonging to the state, or state land referred to in art. VIII of the Alaska Constitution.




Sec. 14.42.310. Annual audit.
The financial records of the corporation shall be audited annually by the legislative auditor or by a certified public accountant approved by the legislative auditor. The legislative auditor may prescribe the form and content of the financial records of the corporation and shall have access to these records at any time.


Sec. 14.42.390. Definitions. [Repealed, § 42 ch 85 SLA 2001.]

Article 3. General Provisions.


Sec. 14.42.990. Definitions.
In this chapter, unless the context requires otherwise,
     (1) “board” means the board of directors of the corporation;

     (2) “commission” means the Alaska Commission on Postsecondary Education created in AS 14.42.015;

     (3) “corporation” means the Alaska Student Loan Corporation created in AS 14.42.100;

     (4) “education loan” means a loan that is eligible for financing or is financed from the education loan fund established in AS 14.42.210;

     (5) “eligible student” means an individual who meets the eligibility requirements established by the federal guaranteed student loan program or as otherwise set out in this chapter;

     (6) “federal guaranteed student loan program” means the programs of the United States government that make postsecondary educational financial aid available under 20 U.S.C. 1070 — 1099c-2, as amended;

     (7) “repayment obligation” means an obligation to repay financial support that is financed from the education loan fund established in AS 14.42.210 or otherwise administered by the commission.




Article 1. University of Alaska Scholarships for High School Graduates.


Chapter 43. Financial Aid Programs for Postsecondary Students.

Sec. 14.43.010. Scholarships for dormitory rent.
The high school student in each graduating class in each high school in the state who, upon the completion of four years of high school work in a high school in the state, obtains the highest average standing for all the credits earned, and who is graduated at an annual commencement is entitled to receive, during dormitory residence at the University of Alaska, a scholarship covering dormitory rent for a period of two years following the year of graduation upon presenting to the registrar of the university a certificate signed by the superintendent or principal of the high school from which the student graduated stating that the graduate named is entitled to receive the benefits of the scholarship. Dormitory residence is governed by the rules and regulations established by the Board of Regents.


Sec. 14.43.015. Alternate upon refusal or failure to accept.
If a person entitled to receive the benefit of AS 14.43.010 declines or fails to accept it, the graduate next in line in class standing is entitled to receive the benefit.


Sec. 14.43.020. Applications for and issuance and report of certificates.
A certificate shall be applied for and issued to a graduate before August 2 of each year and shall be reported immediately to the registrar of the University of Alaska by the superintendent or principal issuing it.


Sec. 14.43.025. Forfeiture of scholarship benefits.
Failure to do passing work in more than one subject during a semester, or withdrawal or expulsion from the University of Alaska, constitutes a forfeiture during the following semester or semesters of the benefits of AS 14.43.010 and 14.43.015.


Sec. 14.43.030. Payment of scholarships.
Payment of the scholarships shall be made monthly to the University of Alaska upon vouchers drawn upon the Department of Administration and duly certified by the treasurer and the president of the Board of Regents. Payments may not be made in excess of amounts specifically appropriated for this purpose.


Article 2. University of Alaska Scholarships for Natives.


Sec. 14.43.050. Purpose of scholarships.
Because of the language difficulty and economic conditions of the Native peoples of the state, and the necessity for integrating the Native cultures with the state economy, it is the purpose of the legislature to provide assistance to Natives who wish to pursue a higher education beyond the attainments possible in the free public schools system.


Sec. 14.43.055. Scholarships.
The Board of Regents of the University of Alaska shall offer not more than 15 new scholarships for each academic year to Alaska Natives desiring to attend the University of Alaska. The board shall give preference to Natives residing in the rural areas of the state who desire to receive training in the field of education. If there are more than 15 applications the board shall award 15 scholarships to those applicants who have the highest scholastic record or who the board determines are the most qualified among the applicants and who are financially unable to obtain a higher education without assistance. The University of Alaska shall provide such minimum financial assistance to these students as is necessary in each individual case, but not exceeding fees, board, and room.


Sec. 14.43.060. Continuation of scholarships.
The award of free room and board shall be made from any funds available to the University of Alaska. Each Native who receives a scholarship under AS 14.43.050 — 14.43.075 is entitled to retain the scholarship and to receive free room and board during attendance at the University of Alaska as long as the student maintains a grade average equivalent to a “C” or better. However, no Native is entitled to the scholarship for more than four years, or for more than the number of years necessary to receive a bachelor’s degree.


Sec. 14.43.065. Scholarships in addition to other scholarships.
The scholarships under AS 14.43.050 — 14.43.075 are supplemental and in addition to any other scholarship to which an applicant is entitled or may receive.


Sec. 14.43.075. Definition of Native.
In AS 14.43.050 — 14.43.075, “Native” means a person between the ages of 17 and 25 who is a descendant of a member of the aboriginal races inhabiting the state when annexed to the United States, or who is a descendant of an Indian or Eskimo who, since the year 1867 and prior to June 30, 1952, migrated into the state from Canada, and who is a descendant having at least one-quarter blood derived from these ancestors.


Article 3. Free Tuition and Fees for Spouse and Children of Certain Police, Fire, or Military Personnel.


Sec. 14.43.080. Free tuition and fees at state-supported educational institutions. [Repealed, § 2 ch 50 SLA 1991.]
Sec. 14.43.085. Free tuition and fees for a spouse or dependent of a peace officer or members of the armed services or a fire department.
 (a) A person enrolled as a student in good standing in a state supported educational institution in this state is entitled to a waiver of undergraduate tuition and fees if the person was the spouse or dependent child of a bona fide resident of the state who was
     (1) a member of the armed services and who died in the line of duty or who died as a result of injuries sustained while in the line of duty for the state or federal government or who was listed by the United States Department of Defense as a prisoner of war or as missing in action; or

     (2) a peace officer or a member of a fire department who died from an act arising out of and in the course of
          (A) employment as a peace officer or a firefighter; or

          (B) duties as a volunteer firefighter.

 (b) In this section,
     (1) “armed services” means the Alaska National Guard, Alaska Naval Militia, and the armed services of the United States;

     (2) “dependent child” means a person who was a dependent of a peace officer or of a member of the armed services or a fire department at the time of the peace officer’s or member’s death, and who is
          (A) the peace officer’s or member’s natural or adopted child;

          (B) a child in relation to whom the deceased armed services member, firefighter, or peace officer stood in loco parentis for at least three years before the peace officer’s or member’s death;

          (C) the peace officer’s or member’s stepchild; or

          (D) the peace officer’s or member’s acknowledged illegitimate child;

     (3) “fire department” means a federal, state, or municipal fire department or a regularly organized volunteer fire department registered with the state fire marshal;

     (4) “line of duty” has the meaning given under federal law;

     (5) “peace officer” has the meaning given in AS 01.10.060 and includes a correctional officer;

     (6) “resident” means a person who resided in the state for at least one year before serving in the armed services and who lists Alaska as the home state for purposes of military records, or a person who was employed as a peace officer in this state or was a member of a fire department located in this state;

     (7) “spouse” means a person who was married to a peace officer or to a member of the armed services or a fire department at the time of the peace officer’s or member’s death.




Article 4. Education Loan Program.


Sec. 14.43.090. Scholarship revolving loan fund. [Repealed, § 42 ch 85 SLA 2001.]
Sec. 14.43.091. Education loan program.
 (a) There is created the education loan program to provide loans to individuals who are students to assist in paying the costs of postsecondary education. The provisions of this section, AS 14.43.100 — 14.43.160, 14.43.910, 14.43.920, and 14.43.990 apply to the loans.

 (b) Upon approval by the commission of an education loan, the corporation shall finance a loan disbursement, subject to any limit that the corporation sets on the total amount of loans that the corporation will finance in a school year. A loan financed under this section becomes an asset of the corporation.

 (c) Repayments of principal and interest on a loan are paid into the education loan fund established in AS 14.42.210. If money made available by the corporation is inadequate to fully finance eligible loan applications, additional financing from the general fund may be requested and appropriated for that year.




Sec. 14.43.095. Financial aid committee. [Repealed, § 29 ch 43 SLA 1991.]
Sec. 14.43.100. Applications.
 (a) Applications shall be submitted to the executive director of the commission.

 (b) A person whose loan application is not approved by the executive director of the commission may appeal to the commission and the commission shall consider the application.




Sec. 14.43.105. Administration of program.
The executive director shall administer the programs subject to review by the commission and in accordance with the regulations adopted by the commission. The adoption of these regulations is subject to AS 44.62 (Administrative Procedure Act). A summary of the regulations shall be distributed to each applicant.


Sec. 14.43.110. Education loans.
 (a) In a school year, the commission may make a loan not to exceed
     (1) $8,500 to a full-time undergraduate student or $5,000 to a half-time undergraduate student attending a college or university if the full- or half-time student is otherwise eligible under AS 14.43.125;

     (2) $9,500 to a full-time graduate student or $4,500 to a half-time graduate student attending a college or university if the full- or half-time graduate student is otherwise eligible under AS 14.43.125;

     (3) $5,500 to a full-time student or $2,000 to a half-time student if the full- or half-time student is attending a career education program that is at least six weeks in length and is otherwise eligible under AS 14.43.125.

 (b) The commission may make a loan for a summer term, even if the total loan for the school year exceeds the limit imposed under (a) of this section if the loan for the summer term is counted against the limit imposed under (a) of this section for the following school year.

 (c) The commission shall adopt regulations establishing a minimum amount for which a loan may be made.




Sec. 14.43.115. Graduate loans. [Repealed § 26 ch 5 SLA 1996.]
Sec. 14.43.120. Conditions of loans.
 (a) Proceeds from an education loan to a full-time student may only be used for books and supplies, tuition and required fees, loan origination fees, and room and board. Proceeds from an education loan to a half-time student may only be used for books and supplies, tuition and required fees, and loan origination fees.

 (b) Education loans may only be used to attend a
     (1) career education program operating on a sound fiscal basis that has
          (A) operated for two years before the borrower attends; and

          (B) submitted an executed program participation agreement as required by the commission; or

     (2) college or university that
          (A) has operated for at least two years before the borrower attends;

          (B) is accredited by a national or regional accreditation association recognized by the Council for Higher Education Accreditation or is approved by the commission;

          (C) if the loans are federally insured, is approved by the United States Secretary of Education;

          (D) is a degree granting institution; and

          (E) has submitted an executed program participation agreement as required by the commission.

 (c) To maintain a loan awarded to a full-time student the student must continue to be enrolled as a full-time student in good standing in a career education program, college, or university that meets the requirements under (b) of this section. To maintain a loan awarded to a half-time student, the student must continue to be enrolled as a half-time student in good standing in (1) a career education program, college, or university in the state that meets the requirements under (b) of this section, or (2) a career education program, college, or university that meets the requirements under (b) of this section, and be physically present in the state while attending the career education program, college, or university. The commission shall adopt regulations defining “good standing” for purposes of this subsection.

 (d) Education loans may not be made to a student
     (1) for more than a total of $42,500 for undergraduate study;

     (2) for more than a total of $47,500 for graduate study;

     (3) for more than a combined total of $60,000 for undergraduate and graduate study;

     (4) to attend an institution if the total amount of education loans made to students to attend that institution exceeds $100,000 and the default rate on those loans is (A) greater than 20 percent but less than 25 percent, and the institution is unable to reduce its default rate within 24 months after the rate determination; or (B) equal to or greater than 25 percent for two consecutive calendar years; for purposes of this paragraph, the default rate shall be determined by the commission for each annual group of loans required to be repaid under (g) of this section on or after July 1, 1996; if an education loan is refused based on the provisions of this paragraph and, under a subsequent default rate determination, an institution’s default rate does not exceed the limits established under this paragraph, the commission may not refuse to issue an education loan to attend that institution based on the provisions of this paragraph.

 (e) Interest on an education loan accrues from the time the loan is disbursed; however, the state shall pay the interest while the borrower continues to be enrolled under (c) of this section.

 (f) [Repealed, § 45 ch 89 SLA 2014.]
 (g) A borrower’s obligation to commence repayment of the principal and interest on the loan begins six months after the borrower is no longer enrolled under (c) of this section. The borrower shall repay the total amount owed in periodic installments of at least $50 a month over a period of not more than 15 years from the commencement of the repayment obligation. If the commission and the borrower agree to a different repayment schedule, the borrower shall repay the loan in accordance with the agreement. A borrower may make payments earlier than required by this subsection or the agreement.

 (h) Security may not be required for a loan; however, a loan origination fee, as specified in (u) of this section, shall be deducted at the time that the loan is disbursed. Additionally, the borrower shall pay all fees and costs incurred in collection on the loan if it becomes delinquent or in default.

 (i) [Repealed, § 18 ch 54 SLA 1997.]
 (j) [Repealed, § 19 ch 92 SLA 1987.]
 (k) A borrower’s obligation to make periodic payments of principal shall be deferred, but the borrower’s obligation to pay interest shall continue, unless the state pays the interest by appropriation under (t) of this section, during any of the following periods:
     (1) return to full-time student status in good standing in a career education program, college, or university that meets the requirements under (b) of this section;

     (2) if the borrower received a loan to attend as a half-time student, return to
          (A) half-time student status in good standing in a career education program, college, or university in the state that meets the requirements under (b) of this section;

          (B) at least half-time student status in good standing in a career education program, college, or university that meets the requirements under (b) of this section, and the borrower is physically present in the state while attending the career education program, college, or university; a borrower is not eligible for deferral under this paragraph for a period longer than eight years; or

          (C) full-time student status in good standing in a career education program, college, or university that meets the requirements under (b) of this section;

     (3) serving an initial period of up to three years on active duty as a member of the armed forces of the United States;

     (4) serving, for up to three years, as a full-time volunteer under the Peace Corps Act;

     (5) serving, for up to three years, as a full-time volunteer under the Domestic Volunteer Service Act of 1973;

     (6) serving, for up to two years, as a full-time volunteer under the National and Community Service Trust Act of 1993 (AmeriCorps);

     (7) for a one-time period up to 12 months in which the borrower is seeking and unable to find employment in the United States; or

     (8) during the period of disability if, after the loan is disbursed, the borrower becomes totally disabled as certified by competent medical authority.

 (l) The state shall pay the interest on that portion of a loan that is not federally insured during
     (1) the period while the borrower continues to be enrolled under (c) of this section; and

     (2) deferments under (k) of this section.

 (m) In case of hardship, the commission may extend repayment of a loan for an additional period of up to five years.

 (n) [Repealed, § 11 ch 89 SLA 1981.]
 (o) [Repealed, § 19 ch 92 SLA 1987.]
 (p) [Repealed, § 102 ch 21 SLA 2000.]
 (q) [Repealed, § 18 ch 54 SLA 1997.]
 (r) The rate of interest, time of payment of an installment of principal or interest, or other terms of an education loan may be modified if required to establish or maintain tax-exempt status under 26 U.S.C. 103 (Internal Revenue Code of 1986), as amended, for the interest on bonds issued by the Alaska Student Loan Corporation.

 (s) A portion of a loan shall be forgiven by the state if, after being enrolled in the course of study for which the loan was granted, the borrower is a student who is unable to complete the school term as a result of serving on active duty as a member of the armed forces of the United States. The portion of the loan that shall be forgiven by the state is equal to the amount borrowed by the student for the school term in which the borrower’s studies are terminated.

 (t) Payment of interest under (l) of this section and forgiveness under (s) of this section are subject to appropriation by the legislature. Money obtained from the sale of bonds by the Student Loan Corporation under AS 14.42.220 may not be appropriated for the payment of interest or the forgiveness of loans.

 (u) The corporation by regulation shall set a loan origination fee, not to exceed five percent of the total education loan amount, to be assessed upon an education loan that is funded from the education loan fund of the corporation. The loan origination fee shall be deducted by the commission at the time the loan is disbursed. The loan origination fees shall be deposited into an origination fee account within the education loan fund of the corporation, and subsequently used by the corporation to offset losses incurred as a result of death, disability, default, or bankruptcy of the borrower.

 (v) [Repealed, § 45 ch 89 SLA 2014.]




Sec. 14.43.122. Consolidation of loans.
 (a) The corporation may offer a borrower who has received more than one education loan the option of consolidating the multiple loans into a single loan as provided in this section.

 (b) For a borrower to be eligible for consolidation of a loan under this section, the borrower must apply on a form approved by the corporation and provide proof satisfactory to the corporation that the borrower
     (1) physically resides in the state and has maintained a domicile in the state for not less than 12 consecutive months before submitting an application for consolidation;

     (2) has not been physically absent from the state for more than 60 days in the 12 months before submitting an application for consolidation;

     (3) has not declared residency in another state;

     (4) has not received a benefit of re