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HB0319a -1- HB 319
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HOUSE BILL NO. 319
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-FOURTH LEGISLATURE - SECOND SESSION
BY REPRESENTATIVE ELAM
Introduced: 2/18/26
Referred: Education, Community and Regional Affairs
A BILL
FOR AN ACT ENTITLED
"An Act relating to municipal educational service areas; relating to municipal bonds; 1
and providing for an effective date." 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 3
* Section 1. AS 29.10.200(51) is amended to read: 4
(51) AS 29.35.450 and AS 29.47.210 (service areas); 5
* Sec. 2. AS 29.47.190(b) is amended to read: 6
(b) Before a general obligation bond issue election, the governing body shall 7
publish [HAVE PUBLISHED] a notice of the total existing bonded [BOND] 8
indebtedness at least once a week for three consecutive weeks. The governing body 9
shall publish the first notice [SHALL BE PUBLISHED] at least 20 days before the 10
date of the election. A notice must include 11
(1) the current total general obligation bonded indebtedness, including 12
authorized but unsold bonds of the municipality; 13
(2) the cost of the debt service on the current indebtedness; 14
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(3) the total assessed value of property in the municipality; and 1
(4) for a vote on bonded indebtedness in an educational service 2
area under AS 29.47.210, the total assessed value of property in the educational 3
service area. 4
* Sec. 3. AS 29.47 is amended by adding a new section to article 3 to read: 5
Sec. 29.47.210. Educational service areas. (a) A unified municipality, a 6
borough, or a home rule or first class city outside a borough may by ordinance 7
establish an educational service area to acquire, construct, improve, and equip schools 8
in the educational service area. 9
(b) An ordinance establishing an educational service area under this section 10
must 11
(1) encompass a geographic area in which at least 25 percent of the 12
residents of the municipality reside; 13
(2) make all public schools in the educational service area eligible to 14
receive capital improvements financed by taxes, charges, or assessments levied on the 15
educational service area; 16
(3) specify a maximum principal amount of bonded indebtedness that 17
the educational service area may undertake; and 18
(4) specify the types of taxes, charges, or assessments that may be 19
authorized on property in the educational service area. 20
(c) A municipality may levy or authorize the levying of taxes, charges, or 21
assessments, or the issuance and sale of bonds, in an educational service area 22
established under this section to acquire, construct, improve, and equip schools in the 23
service area. If the governing body authorizes the levying of taxes, charges, or 24
assessments, or the issuance and sale of bonds, the rate of taxation and the issuance of 25
bonds are subject to approval by the governing body and by a majority of voters. If the 26
indebtedness to be incurred is limited to the educational service area, the vote to 27
approve the bond authorization ordinance is limited to voters in the educational 28
service area. If the full faith and credit of the entire municipality is pledged for the 29
payment of the debt, the proposition must pass in both the municipality and in the 30
educational service area. 31
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(d) The governing body may provide for an appointed or elected board to 1
supervise the furnishing of services in an educational service area. 2
* Sec. 4. AS 29.47.450 is amended to read: 3
Sec. 29.47.450. Service area debt. The indebtedness of a service area acquired 4
under AS 29.47.210 or 29.47.440 [AS 29.47.440] remains the indebtedness of the area 5
that incurred the debt, notwithstanding a subsequent court determination that the 6
service area was not validly formed under law or by virtue of a defect in the 7
proceedings creating the service area. All property in the service area remains subject 8
to taxation to pay the bonded indebtedness. 9
* Sec. 5. AS 44.85.410(4) is amended to read: 10
(4) "municipal bond" means a bond or note or evidence of debt that 11
constitutes 12
(A) a general obligation bond that is a direct and general 13
obligation of a political subdivision of the state, all the taxable property within 14
which is subject to taxation to pay the bond, note, or evidence of debt, and the 15
interest without limitation, as to rate or amount generally to the extent 16
permitted by law or to avoid a default as provided for second class cities under 17
AS 29.45.590; 18
(B) a revenue bond issued by a municipality, the University of 19
Alaska, a regional health organization, a joint action agency formed under 20
AS 42.45.310, a solid waste management authority, or a port authority that 21
pledges the revenue of a revenue-producing capital improvement and that is 22
payable solely from the revenue of the revenue-producing capital 23
improvement; 24
(C) a general obligation bond or revenue bond combined or 25
additionally secured; 26
(D) a bond of a municipality [BOROUGH] issued as a general 27
obligation of a service area under AS 29.47.210, 29.47.440, [AS 29.47.440] or 28
former AS 29.58.340; or 29
(E) an obligation of a municipality secured only by 30
(i) special assessments on benefited property; 31
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(ii) tax increments and a letter of credit or equal 1
security; or 2
(iii) a lease; 3
* Sec. 6. This Act takes effect July 1, 2026. 4