SB 164: "An Act relating to municipal incorporation, reclassification, and dissolution."
00SENATE BILL NO. 164 01 "An Act relating to municipal incorporation, reclassification, and dissolution." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. AS 29.04.040(a) is amended to read: 04 (a) A second class city may be reclassified as a first class city [BY HOLDING 05 AN ELECTION ON THE QUESTION,] if it meets the standards for incorporation 06 as a first class city under AS 29.05.011(a). Reclassification is proposed by filing 07 a petition with the department. The department shall investigate the proposal 08 and report its findings to the Local Boundary Commission with its 09 recommendations. The commission shall hold at least one public hearing in the 10 city on the proposal. If the commission determines that the city meets the 11 standards for incorporation as a first class city and that reclassification is in the 12 best interests of the state, it shall accept the petition. If the commission 13 determines that the city does not meet the standards or that reclassification is not 14 in the best interests of the state, it shall reject the petition. The decision may be
01 appealed under AS 44.62 (Administrative Procedure Act) [THE DEPARTMENT 02 DETERMINES FROM THE BEST FIGURES AVAILABLE THAT THE 03 POPULATION OF THE CITY HAS REACHED 400 PERMANENT RESIDENTS]. 04 * Sec. 2. AS 29.04.040(b) is amended to read: 05 (b) A petition proposing [AN ELECTION ON THE QUESTION OF] 06 reclassification may be filed by [INITIATED IN TWO WAYS:] 07 (1) a number of voters equal to 15 percent of the number of votes cast 08 in the city at the preceding regular election [MAY FILE A PETITION WITH THE 09 COUNCIL]; or 10 (2) the council may propose reclassification. 11 * Sec. 3. AS 29.04.040(c) is amended to read: 12 (c) If the Local Boundary Commission accepts a petition for 13 reclassification, the [THE] council shall hold at least one public hearing in the city 14 on the question of reclassification. The council shall then evaluate the ability of the 15 city to assume first class status and make its findings public. 16 * Sec. 4. AS 29.05.011(a) is amended to read: 17 (a) A community that meets the following standards may incorporate as a first 18 class or home rule city: 19 (1) the community has 400 or more permanent residents; 20 (2) the boundaries of the proposed city include all areas necessary to 21 provide municipal services on an efficient scale; 22 (3) the economy of the community includes the human and financial 23 resources necessary to provide municipal services; in considering the economy of the 24 community, the Local Boundary Commission shall consider property values, economic 25 base, personal income, resource and commercial development, anticipated functions, 26 and the expenses and income of the proposed city, including the ability of the 27 community to generate local revenue; 28 (4) the population of the community is stable enough to support city 29 government; 30 (5) there is a demonstrated need for city government. 31 * Sec. 5. AS 29.05.031(a) is amended to read:
01 (a) An area that meets the following standards may incorporate as a home rule, 02 first class, or second class borough, or as a unified municipality: 03 (1) the population of the area is interrelated and integrated as to its 04 social, cultural, and economic activities, and is large and stable enough to support 05 borough government; 06 (2) the boundaries of the proposed borough or unified municipality 07 conform generally to natural geography and include all areas necessary for full 08 development of municipal services; 09 (3) the economy of the area includes the human and financial resources 10 capable of providing municipal services; evaluation of an area's economy includes land 11 use, property values, total economic base, total personal income, resource and 12 commercial development, anticipated functions, expenses, and income of the proposed 13 borough or unified municipality; 14 (4) land, water, and air transportation facilities allow the 15 communication and exchange necessary for the development of integrated borough 16 government. 17 * Sec. 6. AS 29.05.060 is amended to read: 18 Sec. 29.05.060. PETITION. Municipal incorporation is proposed by filing a 19 petition with the department. The petition must [SHALL] include the following 20 information about the proposed municipality: 21 (1) class; 22 (2) name; 23 (3) boundaries; 24 (4) maps, documents, and other information required by the department; 25 (5) composition and apportionment of the governing body; 26 (6) a proposed operating budget for the municipality projecting sources 27 of income and items of expenditure through the first full fiscal year of operation; 28 (7) for a borough or unified municipality, based on the number who 29 voted in the respective areas in the last general election, the signature and resident 30 address of 15 percent of the voters in 31 (A) home rule and first class cities in the area of the proposed
01 borough or unified municipality; and 02 (B) the area of the proposed borough or unified municipality 03 outside home rule and first class cities; 04 (8) for a first class borough or unified municipality, a designation of 05 areawide powers to be exercised; 06 (9) for a second class borough, a designation of areawide and 07 nonareawide powers to be exercised; 08 (10) for a first class, [OR] second class, or home rule city, a 09 designation of the powers to be exercised; 10 (11) for a first class or home rule city, based on the number who voted 11 in the area in the last general election, the signatures and resident addresses of 50 12 voters in the proposed city or of 15 percent of the voters in the proposed city, 13 whichever is greater; 14 (12) for a second class city, based on the number who voted in the area 15 in the last general election, the signatures and resident addresses of 25 voters in the 16 proposed city or of 15 percent of the voters in the proposed city, whichever is greater; 17 (13) for a home rule city, home rule borough, or unified municipality 18 a proposed home rule charter. 19 * Sec. 7. AS 29.05.110(d) is amended to read: 20 (d) A home rule charter included in an incorporation petition under 21 AS 29.05.060(13) is considered to be part of the incorporation question. The home 22 rule charter is adopted if the voters approve incorporation of the city, borough, or 23 unified municipality. 24 * Sec. 8. AS 29.05.140 is amended by adding a new subsection to read: 25 (e) Upon incorporation, the home rule charter of a unified municipality 26 operates to dissolve all municipalities in the area unified in accordance with the 27 charter. 28 * Sec. 9. AS 29.05.190 is amended to read: 29 Sec. 29.05.190. ORGANIZATION GRANTS TO BOROUGHS AND 30 UNIFIED MUNICIPALITIES. (a) For the purpose of defraying the cost of 31 transition to borough government and to provide for interim governmental operations,
01 each borough or unified municipality incorporated after December 31, 1985, is 02 entitled to organization grants as follows: 03 (1) $300,000 for the municipality's [BOROUGH'S] first full or partial 04 fiscal year; 05 (2) $200,000 for the municipality's [BOROUGH'S] second fiscal year; 06 and 07 (3) $100,000 for the municipality's [BOROUGH'S] third fiscal year. 08 (b) The department shall disburse the first organization grant to a borough or 09 unified municipality within 30 days after certification of the [INCORPORATION] 10 election favoring incorporation [OF A BOROUGH], or as soon after that as money is 11 appropriated and available for the purpose. The second grant shall be disbursed within 12 30 days after the beginning of the municipality's [ BOROUGH'S] second fiscal year, 13 or as soon after that as money is appropriated and available for the purpose. The third 14 grant shall be disbursed within 30 days after the beginning of the municipality's 15 [BOROUGH'S] third fiscal year, or as soon after that as money is appropriated and 16 available for the purpose. 17 (c) This section does not apply to a borough incorporated by consolidation or 18 to a unified municipality that occupies the area formerly occupied by a borough. 19 * Sec. 10. AS 29.05.210 is amended to read: 20 Sec. 29.05.210. TRANSITIONAL ASSISTANCE TO BOROUGHS AND 21 UNIFIED MUNICIPALITIES. (a) Within 30 days after the date of incorporation 22 of a borough or unified municipality incorporated after December 31, 1985, the 23 department shall determine the population of the borough or unified municipality. 24 (b) The department shall provide assistance to each borough and unified 25 municipality incorporated after December 31, 1985, in 26 (1) establishing the initial sales and use tax assessment and collection 27 department if the borough or unified municipality has adopted a sales or use tax; 28 (2) determining the initial property tax assessment roll if the borough 29 or unified municipality has adopted a property tax, including contracting for 30 appraisals of property needed to complete the initial assessment. 31 (c) This section does not apply to a borough incorporated by consolidation or
01 to a unified municipality that occupies the area formerly occupied by a borough. 02 * Sec. 11. AS 29.06.190 is amended by adding a new subsection to read: 03 (b) An area that is not incorporated as a borough, including any cities in the 04 area, may incorporate as a unified municipality under AS 29.05.031. 05 * Sec. 12. AS 29.06.470(a) is amended to read: 06 (a) Except as provided in (b) of this section, voters of a municipality may 07 petition for dissolution when the municipality is free of debt, or, if in debt, each of its 08 creditors is satisfied with a method of repayment and 09 (1) the municipality no longer meets the minimum standards prescribed 10 for incorporation by AS 29.05, or former AS 29.18.030 if it is a third class borough; 11 (2) the municipality ceases to use each of its mandatory powers; or 12 (3) the dissolution petition filed under AS 29.06.460 is signed by a 13 number of voters of the municipality proposed to be dissolved greater than 50 percent 14 of the number of votes cast in the last regular [GENERAL] election in that 15 municipality. 16 * Sec. 13. AS 29.06.500(a) is amended to read: 17 (a) If the Local Boundary Commission determines that a municipality fails to 18 meet the standards for dissolution, it shall reject the petition. [IF THE COMMISSION 19 DETERMINES THAT THE MUNICIPALITY MEETS THE STANDARDS UNDER 20 AS 29.06.470(A)(1) OR (2), IT SHALL ACCEPT THE PETITION.] If the 21 commission determines that the petition meets the standards under AS 29.06.470(a)(1), 22 (2), or (3) [AS 29.06.470(a)(3)] and that dissolution of the municipality is in the best 23 interest of the state, it shall accept the petition. 24 * Sec. 14. AS 29.10.010(b) is amended to read: 25 (b) A second class city that exceeds 35 square miles in area may adopt a 26 charter for its own government and reclassify as a home rule city if the department 27 determines from the best figures available that the population of the city is at least 28 3,500 permanent residents. Reclassification is proposed by filing a petition with the 29 department. The department shall investigate the proposal and report its findings 30 to the Local Boundary Commission with its recommendations. The commission 31 shall hold at least one public hearing in the city on the proposal. If the
01 commission determines that the city meets the standards under this section and 02 that reclassification is in the best interests of the state, it shall accept the petition. 03 If the commission determines that the city does not meet the standards or that 04 reclassification is not in the best interests of the state, it shall reject the petition. 05 The decision may be appealed under AS 44.62 (Administrative Procedure Act). 06 * Sec. 15. AS 29.10.010(c) is amended to read: 07 (c) At an incorporation election [FOR BOROUGH INCORPORATION], an 08 area in the unorganized borough may adopt a charter for its own government and 09 incorporate as a home rule city, borough, or unified municipality. 10 * Sec. 16. AS 29.10.010(f) is amended to read: 11 (f) The proposed charter for an unincorporated area [OF THE 12 UNORGANIZED BOROUGH] shall be prepared by the petitioners and filed under 13 AS 29.05.060 with the petition to incorporate a home rule city, borough, or unified 14 municipality. 15 * Sec. 17. AS 29.10.020 is amended to read: 16 Sec. 29.10.020. MODEL CHARTERS. The department shall prepare at least 17 one model home rule charter for a city, borough, and unified municipality. The 18 model charters [CHARTER] shall be made available to persons interested in filing a 19 petition to incorporate a home rule municipality [BOROUGH] under AS 29.05.060. 20 * Sec. 18. AS 29.10.070 is amended to read: 21 Sec. 29.10.070. CHARTER ELECTION. The proposed home rule charter for 22 an existing municipality shall be submitted to the voters at an election held not less 23 than 30 days or more than 90 days after the proposed charter is published. The 24 proposed home rule charter for an unincorporated area [IN THE UNORGANIZED 25 BOROUGH] shall be submitted to the voters at an incorporation election held under 26 AS 29.05.110. 27 * Sec. 19. AS 29.10.080(a) is amended to read: 28 (a) If a majority of those voting in an existing municipality favor the proposed 29 charter or if a majority of those voting in an unincorporated area [IN THE 30 UNORGANIZED BOROUGH] favor incorporation of a home rule municipality 31 [BOROUGH], the proposed charter becomes the organic law of the municipality
01 effective on the date the election is certified. Thereafter, a court shall take judicial 02 notice of the charter. The new home rule municipality shall file the indicated number 03 of copies of the charter with 04 (1) the lieutenant governor - two copies; 05 (2) the department - two copies; 06 (3) the district recorder - one copy; 07 (4) the municipal clerk - one copy. 08 * Sec. 20. AS 29.10.090(b) is amended to read: 09 (b) If incorporation of a home rule municipality [BOROUGH] is rejected by 10 the voters in an unincorporated area [IN THE UNORGANIZED BOROUGH], the 11 proposed charter is rejected.