00CS FOR HOUSE BILL NO. 133(FIN)(efd fld)                                                                               
01 "An Act relating to municipal service areas and providing for voter approval of                                         
02 the formation, alteration, or abolishment of certain service areas."                                                    
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                               
04    * Section 1.  AS 29.10.200 is amended by adding a new paragraph to read:                                           
05   (59)  AS 29.35.450 (voter approval of alteration or abolishment of                                                   
06 service areas).                                                                                                         
07    * Sec. 2.  AS 29.35.450(a) is amended to read:                                                                     
08  (a)  A service area to provide special services in a borough  or unified                                             
09 municipality  may be established, operated, altered, or abolished by ordinance , subject                              
10 to (c) of this section.  Special services include services not provided by the unified                                  
11 municipality or a higher or different level of services .  Special services include                                    
12 services not provided  by a borough  on an areawide or nonareawide basis in the                                       
13 borough [,] or a higher or different level of  services  [SERVICE] than that provided                                 
14 on an areawide or nonareawide basis.   A  [THE] borough may include a city in a                                       

01 service area if                                                                                                         
02   (1)  the city agrees by ordinance; or                                                                                
03   (2)  approval is granted by a majority of voters residing in the city, and                                           
04 by a majority of voters residing inside the boundaries of the proposed service area but                                 
05 outside of the city.                                                                                                    
06    * Sec. 3.  AS 29.35.450 is amended by adding new subsections to read:                                              
07  (c)  If voters reside within a service area, abolishment of the service area is                                       
08 subject to approval by the majority of the voters residing in the service area who vote                                 
09 on the question.  A service area in which voters reside may not be abolished and                                        
10 replaced by a larger service area unless that proposal is approved, separately, by a                                    
11 majority of the voters who vote on the question residing in the existing service area                                   
12 and by a majority of the voters who vote on the question residing in the area proposed                                  
13 to be included within the new service area but outside of the existing service area.  A                                 
14 service area in which voters reside may not be altered or combined with another                                         
15 service area unless that proposal is approved, separately, by a majority of the voters                                  
16 who vote on the question and who reside in each of the service areas or in the area                                     
17 outside of service areas that is affected by the proposal.  This subsection does not                                    
18 apply to a fire service protection area.                                                                                
19  (d)  This section applies to home rule and general law municipalities.                                                
20    * Sec. 4.  AS 29.35.470 is amended by adding a new subsection to read:                                             
21  (b)  The assembly may by ordinance establish, alter, and abolish differential tax                                     
22 zones within a service area to provide and levy property taxes for a different level of                                 
23 services than that provided generally in the service area.