00             SENATE CS FOR CS FOR SS FOR HOUSE BILL NO. 13(JUD)                                                         
01 "An Act relating to municipal service areas and providing for voter approval of the                                     
02 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                 (60)  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,                            
10       subject to (c) of this section.  Special services include services not provided by the                        
11       unified municipality or a higher or different level of services.  Special services                            
12       include services not provided by a borough on an areawide or nonareawide basis in                             
13       the 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 that provides road, fire protection, or                          
08       parks and recreation services, abolishment of the service area is subject to approval by                          
09       the majority of the voters residing in the service area who vote on the question.  A                              
10       service area that provides road, fire protection, or parks and recreation services in                             
11       which voters reside may not be abolished and replaced by a larger service area unless                             
12       that proposal is approved, separately, by a majority of the voters who vote on the                                
13       question residing in the existing service area and by a majority of the voters who vote                           
14       on the question residing in the area proposed to be included within the new service                               
15       area but outside of the existing service area.  A service area that provides road, fire                           
16       protection, or parks and recreation services in which voters reside may not be altered                            
17       or combined with another service area unless that proposal is approved, separately, by                            
18       a majority of the voters who vote on the question and who reside in each of the service                           
19       areas or in the area outside of service areas that is affected by the proposal.  This                             
20       subsection does not apply to a proposed change to a service area that provides fire                               
21       protection services that would result in increasing the number of parcels of land in the                          
22       service area or successor service area if the increase is no more than six percent.                               
23            (d)  This section applies to a home rule or general law municipality.                                        
24    * Sec. 4.  AS 29.35.470 is amended by adding a new subsection to read:                                             
25            (b)  The assembly may by ordinance establish, alter, and abolish differential                                
26       tax zones within a service area to provide and levy property taxes for a different level                          
27       of services than that provided generally in the service area.  Taxes levied within a                              
28       differential tax zone may only be used for the services provided in that zone.