00                             HOUSE BILL NO. 108                                                                          
01 "An Act relating to the regulation of water and sewer utilities of political subdivisions                               
02 that are not in competition with other water and sewer utilities."                                                      
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 42.05.711(b) is amended to read:                                                                  
05            (b)  Except as otherwise provided in this subsection and in (o) of this section,                             
06       public utilities owned and operated by a political subdivision of the state, or electric                          
07       operating entities established as the instrumentality of two or more public utilities                             
08       owned and operated by political subdivisions of the state, are exempt from this                                   
09       chapter, other than AS 42.05.221 - 42.05.281 and 42.05.385.  However,                                             
10                 (1)  the governing body of a political subdivision may elect to be                                      
11       subject to this chapter; and                                                                                      
12                 (2)  a utility or electric operating entity that is owned and operated by a                             
13       political subdivision and that directly competes with another utility or electric                                 
14       operating entity is subject to this chapter and any other utility or electric operating                           
01       entity owned and operated by the political subdivision is also subject to this chapter;                           
02       this paragraph does not apply to                                                                                  
03                      (A)  a utility or electric operating entity owned and operated by                              
04            a political subdivision that competes with a telecommunications utility;                                 
05                      (B)  a water utility owned by a political subdivision that                                     
06            does not directly compete with another water utility; or                                                 
07                      (C)  a sewer utility owned by a political subdivision that                                     
08            does not directly compete with another sewer utility.