Alaska Administrative Code
Title 4 - Education and Early Development
Chapter 31 - School Facility Planning and Construction
Article 2 - Loss Protection
4 AAC 31.215 - Proceeds

(a) In the event of damage to or destruction of a school facility owned by a municipality, or a regional educational attendance area that holds title to its facilities under AS 14.08.151, the insurance proceeds shall be used to repair or replace the facility. If the facility is not repaired or replaced, and a grant application is not pending under (c) of this section for a similar facility in the approximate attendance area, the school district may use the insurance proceeds, as it deems appropriate, to pay for other proposed district projects that have been ranked, by the department, in the categories in 4 AAC 31.022(b) (1) or (b)(2).

(b) In the event of damage to or destruction of a school facility operated by a regional educational attendance area and owned by the state, the insurance proceeds shall be used to repair or replace the facility, but only with the department's prior approval. If the facility is not repaired or replaced, the proceeds shall be paid to the state.

(c) If a grant under AS 14.11 is sought to repair or replace a facility, the project amount will be reduced by the amount of insurance proceeds received by the district, and, as provided in 4 AAC 31.210, by the amount of the deductible paid.