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Judiciary Committee Subsitute for the
Sponsor Substitute for HB 13
Service Areas: Voter Approval/Tax

An Act relating to municipal service areas and providing for voter approval of the formation, alteration, or abolishment of certain service areas.

Alaska's Constitution provides for maximum local self-government ( Art. X sec.1) and for the creation, alteration, or abolishment of service areas subject to the provisions of law ( Art. X sec. 5).

AS 29.35.450 codifies these Constitutional provisions and establishes the mechanism by which service areas are created, altered, and abolished.

Alaska has approximately 200 service areas; in these areas the local residents use private contractors for necessary services and assess themselves to pay for a desired level of service.

CSSSHB 13 amends, AS 29.35.450 to support local control by clearly identifying whom should vote on the abolishment and alteration of a service area under three scenarios:

• Abolishment of a service area.
  Subject to approval by the majority of the voters residing in the service area.
• Abolishment and replacement of a service area.
  Must be approved separately by a majority of voters inside an existing service area and by a majority of the voters residing in the proposed service area BUT OUTSIDE the existing service area.
• Alteration of service area or combining it with another service area.
  Must be approved, separately, by a majority of the voters who vote on the question and who reside in each of the service areas or in a proposed service area affected by the proposal.

This proposed legislation would settle a long time debate about who is entitled to vote during the creation, alteration or abolishment of a service area. This legislation has support throughout service areas in Alaska and I urge the favorable consideration of this committee.

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