HB 319: "An Act relating to municipal educational service areas; relating to municipal bonds; and providing for an effective date."
00 HOUSE BILL NO. 319 01 "An Act relating to municipal educational service areas; relating to municipal bonds; 02 and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 29.10.200(51) is amended to read: 05 (51) AS 29.35.450 and AS 29.47.210 (service areas); 06 * Sec. 2. AS 29.47.190(b) is amended to read: 07 (b) Before a general obligation bond issue election, the governing body shall 08 publish [HAVE PUBLISHED] a notice of the total existing bonded [BOND] 09 indebtedness at least once a week for three consecutive weeks. The governing body 10 shall publish the first notice [SHALL BE PUBLISHED] at least 20 days before the 11 date of the election. A notice must include 12 (1) the current total general obligation bonded indebtedness, including 13 authorized but unsold bonds of the municipality; 14 (2) the cost of the debt service on the current indebtedness;
01 (3) the total assessed value of property in the municipality; and 02 (4) for a vote on bonded indebtedness in an educational service 03 area under AS 29.47.210, the total assessed value of property in the educational 04 service area. 05 * Sec. 3. AS 29.47 is amended by adding a new section to article 3 to read: 06 Sec. 29.47.210. Educational service areas. (a) A unified municipality, a 07 borough, or a home rule or first class city outside a borough may by ordinance 08 establish an educational service area to acquire, construct, improve, and equip schools 09 in the educational service area. 10 (b) An ordinance establishing an educational service area under this section 11 must 12 (1) encompass a geographic area in which at least 25 percent of the 13 residents of the municipality reside; 14 (2) make all public schools in the educational service area eligible to 15 receive capital improvements financed by taxes, charges, or assessments levied on the 16 educational service area; 17 (3) specify a maximum principal amount of bonded indebtedness that 18 the educational service area may undertake; and 19 (4) specify the types of taxes, charges, or assessments that may be 20 authorized on property in the educational service area. 21 (c) A municipality may levy or authorize the levying of taxes, charges, or 22 assessments, or the issuance and sale of bonds, in an educational service area 23 established under this section to acquire, construct, improve, and equip schools in the 24 service area. If the governing body authorizes the levying of taxes, charges, or 25 assessments, or the issuance and sale of bonds, the rate of taxation and the issuance of 26 bonds are subject to approval by the governing body and by a majority of voters. If the 27 indebtedness to be incurred is limited to the educational service area, the vote to 28 approve the bond authorization ordinance is limited to voters in the educational 29 service area. If the full faith and credit of the entire municipality is pledged for the 30 payment of the debt, the proposition must pass in both the municipality and in the 31 educational service area.
01 (d) The governing body may provide for an appointed or elected board to 02 supervise the furnishing of services in an educational service area. 03 * Sec. 4. AS 29.47.450 is amended to read: 04 Sec. 29.47.450. Service area debt. The indebtedness of a service area acquired 05 under AS 29.47.210 or 29.47.440 [AS 29.47.440] remains the indebtedness of the area 06 that incurred the debt, notwithstanding a subsequent court determination that the 07 service area was not validly formed under law or by virtue of a defect in the 08 proceedings creating the service area. All property in the service area remains subject 09 to taxation to pay the bonded indebtedness. 10 * Sec. 5. AS 44.85.410(4) is amended to read: 11 (4) "municipal bond" means a bond or note or evidence of debt that 12 constitutes 13 (A) a general obligation bond that is a direct and general 14 obligation of a political subdivision of the state, all the taxable property within 15 which is subject to taxation to pay the bond, note, or evidence of debt, and the 16 interest without limitation, as to rate or amount generally to the extent 17 permitted by law or to avoid a default as provided for second class cities under 18 AS 29.45.590; 19 (B) a revenue bond issued by a municipality, the University of 20 Alaska, a regional health organization, a joint action agency formed under 21 AS 42.45.310, a solid waste management authority, or a port authority that 22 pledges the revenue of a revenue-producing capital improvement and that is 23 payable solely from the revenue of the revenue-producing capital 24 improvement; 25 (C) a general obligation bond or revenue bond combined or 26 additionally secured; 27 (D) a bond of a municipality [BOROUGH] issued as a general 28 obligation of a service area under AS 29.47.210, 29.47.440, [AS 29.47.440] or 29 former AS 29.58.340; or 30 (E) an obligation of a municipality secured only by 31 (i) special assessments on benefited property;
01 (ii) tax increments and a letter of credit or equal 02 security; or 03 (iii) a lease; 04 * Sec. 6. This Act takes effect July 1, 2026.