CSSB 164(RLS): "An Act providing that home rule cities in the unorganized borough are school districts; permitting the Local Boundary Commission to amend petitions for incorporation or proposing municipal boundary changes; applying existing standards of incorporation for boroughs to unified municipalities; applying existing standards of incorporation for first class cities to incorporation of a home rule city; and relating to reclassification of first class or home rule cities to second class cities, to municipal reclassification and to public hearings on reclassification, to formation of home rule cities and unified municipalities through incorporation, merger, or consolidation, to organization grants and transitional assistance for unified municipalities, to adoption of a home rule charter by a second class city, to dissolution of municipalities, to filing copies of an amended home rule charter, and to regulations of the local boundary commission dealing with standards and procedures for municipal incorporation, annexation, detachment, merger, consolidation, reclassification, and dissolution."
00CS FOR SENATE BILL NO. 164(RLS) 01 "An Act providing that home rule cities in the unorganized borough are school 02 districts; permitting the Local Boundary Commission to amend petitions for 03 incorporation or proposing municipal boundary changes; applying existing standards 04 of incorporation for boroughs to unified municipalities; applying existing standards 05 of incorporation for first class cities to incorporation of a home rule city; and 06 relating to reclassification of first class or home rule cities to second class cities, 07 to municipal reclassification and to public hearings on reclassification, to formation 08 of home rule cities and unified municipalities through incorporation, merger, or 09 consolidation, to organization grants and transitional assistance for unified 10 municipalities, to adoption of a home rule charter by a second class city, to 11 dissolution of municipalities, to filing copies of an amended home rule charter, 12 and to regulations of the local boundary commission dealing with standards and 13 procedures for municipal incorporation, annexation, detachment, merger, 14 consolidation, reclassification, and dissolution."
01 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 02 * Section 1. AS 14.12.010 is amended to read: 03 Sec. 14.12.010. DISTRICTS OF STATE PUBLIC SCHOOL SYSTEM. The 04 districts of the state public school system are as follows: 05 (1) each home rule and first class city in the unorganized borough is 06 a city school district; 07 (2) each organized borough is a borough school district; 08 (3) the area outside organized boroughs and outside home rule and 09 first class cities is divided into regional educational attendance areas. 10 * Sec. 2. AS 29.04.040(a) is amended to read: 11 (a) A second class city may be reclassified as a first class city. A first class 12 or home rule city may be reclassified as a second class city. Reclassification is 13 proposed by filing a petition with the department. The department shall 14 investigate the proposal and report its findings to the Local Boundary 15 Commission with its recommendations. The commission shall hold at least one 16 public hearing in the city on the proposal. If the commission determines that the 17 city meets the standards for incorporation under AS 29.05.011 for the class of city 18 proposed in the reclassification petition and that reclassification is in the best 19 interests of the state, it may accept or amend and accept the petition. If the 20 commission determines that the city does not meet the standards or that 21 reclassification is not in the best interests of the state, it shall reject the petition. 22 The commission shall notify the city of its decision. The decision may be appealed 23 under AS 44.62 (Administrative Procedure Act) [BY HOLDING AN ELECTION 24 ON THE QUESTION, IF THE DEPARTMENT DETERMINES FROM THE BEST 25 FIGURES AVAILABLE THAT THE POPULATION OF THE CITY HAS REACHED 26 400 PERMANENT RESIDENTS]. 27 * Sec. 3. AS 29.04.040(b) is amended to read: 28 (b) A petition proposing [AN ELECTION ON THE QUESTION OF] 29 reclassification may be filed by [INITIATED IN TWO WAYS:] 30 (1) a number of voters equal to 15 percent of the number of votes cast 31 in the city at the preceding regular election [MAY FILE A PETITION WITH THE
01 COUNCIL]; or 02 (2) the council [MAY PROPOSE RECLASSIFICATION]. 03 * Sec. 4. AS 29.04.040(d) is amended to read: 04 (d) The council shall, within 30 days after receiving notification from the 05 Local Boundary Commission that a petition has been accepted [ITS FINDINGS 06 HAVE BEEN MADE PUBLIC], order an election on the question of reclassification. 07 The election shall be held at least 30 days after the order and not later than the next 08 regular election occurring after the 30-day period. If more than one question is to be 09 voted on at the election, each shall appear separately on the ballot. 10 * Sec. 5. AS 29.04.040(e) is amended to read: 11 (e) The council shall certify the election results to the department. If the 12 majority of votes cast is favorable, the city is [SHALL BE CONSIDERED] reclassified 13 [TO FIRST CLASS STATUS] 30 days after certification of the election results. 14 * Sec. 6. AS 29.05.011(a) is amended to read: 15 (a) A community that meets the following standards may incorporate as a first 16 class or home rule city: 17 (1) the community has 400 or more permanent residents; 18 (2) the boundaries of the proposed city include all areas necessary to 19 provide municipal services on an efficient scale; 20 (3) the economy of the community includes the human and financial 21 resources necessary to provide municipal services; in considering the economy of the 22 community, the Local Boundary Commission shall consider property values, economic 23 base, personal income, resource and commercial development, anticipated functions, 24 and the expenses and income of the proposed city, including the ability of the 25 community to generate local revenue; 26 (4) the population of the community is stable enough to support city 27 government; 28 (5) there is a demonstrated need for city government. 29 * Sec. 7. AS 29.05.031(a) is amended to read: 30 (a) An area that meets the following standards may incorporate as a home rule, 31 first class, or second class borough, or as a unified municipality:
01 (1) the population of the area is interrelated and integrated as to its 02 social, cultural, and economic activities, and is large and stable enough to support 03 borough government; 04 (2) the boundaries of the proposed borough or unified municipality 05 conform generally to natural geography and include all areas necessary for full 06 development of municipal services; 07 (3) the economy of the area includes the human and financial resources 08 capable of providing municipal services; evaluation of an area's economy includes land 09 use, property values, total economic base, total personal income, resource and 10 commercial development, anticipated functions, expenses, and income of the proposed 11 borough or unified municipality; 12 (4) land, water, and air transportation facilities allow the 13 communication and exchange necessary for the development of integrated borough 14 government. 15 * Sec. 8. AS 29.05.060 is amended to read: 16 Sec. 29.05.060. PETITION. Municipal incorporation is proposed by filing a 17 petition with the department. The petition must [SHALL] include the following 18 information about the proposed municipality: 19 (1) class; 20 (2) name; 21 (3) boundaries; 22 (4) maps, documents, and other information required by the department; 23 (5) composition and apportionment of the governing body; 24 (6) a proposed operating budget for the municipality projecting sources 25 of income and items of expenditure through the first full fiscal year of operation; 26 (7) for a borough or unified municipality, based on the number who 27 voted in the respective areas in the last general election, the signature and resident 28 address of 15 percent of the voters in 29 (A) home rule and first class cities in the area of the proposed 30 borough or unified municipality; and 31 (B) the area of the proposed borough or unified municipality
01 outside home rule and first class cities; 02 (8) for a first class borough or unified municipality, a designation of 03 areawide powers to be exercised; 04 (9) for a second class borough, a designation of areawide and 05 nonareawide powers to be exercised; 06 (10) for a first class, [OR] second class, or home rule city, a 07 designation of the powers to be exercised; 08 (11) for a first class or home rule city, based on the number who voted 09 in the area in the last general election, the signatures and resident addresses of 50 10 voters in the proposed city or of 15 percent of the voters in the proposed city, 11 whichever is greater; 12 (12) for a second class city, based on the number who voted in the area 13 in the last general election, the signatures and resident addresses of 25 voters in the 14 proposed city or of 15 percent of the voters in the proposed city, whichever is greater; 15 (13) for a home rule city, home rule borough, or unified municipality 16 a proposed home rule charter. 17 * Sec. 9. AS 29.05.100(a) is amended to read: 18 (a) If the Local Boundary Commission determines that a proposed municipality 19 fails to meet the standards for incorporation, it shall reject the petition. If the 20 commission determines that the proposed municipality meets the standards, it may 21 [SHALL] accept the petition or amend [. IF THE COMMISSION DETERMINES 22 THAT THE PROPOSED MUNICIPAL BOUNDARIES CAN BE ALTERED TO 23 MEET THE STANDARDS, IT MAY ALTER THE BOUNDARIES] and accept the 24 petition. 25 * Sec. 10. AS 29.05.110(d) is amended to read: 26 (d) A home rule charter included in an incorporation petition under 27 AS 29.05.060(13) is considered to be part of the incorporation question. The home 28 rule charter is adopted if the voters approve incorporation of the city, borough, or 29 unified municipality. 30 * Sec. 11. AS 29.05.140 is amended by adding a new subsection to read: 31 (e) Upon incorporation, the home rule charter of a unified municipality
01 operates to dissolve all municipalities in the area unified in accordance with the 02 charter. 03 * Sec. 12. AS 29.05.190 is amended to read: 04 Sec. 29.05.190. ORGANIZATION GRANTS TO BOROUGHS AND 05 UNIFIED MUNICIPALITIES. (a) For the purpose of defraying the cost of 06 transition to borough government and to provide for interim governmental operations, 07 each borough or unified municipality incorporated after December 31, 1985, is 08 entitled to organization grants as follows: 09 (1) $300,000 for the municipality's [BOROUGH'S] first full or partial 10 fiscal year; 11 (2) $200,000 for the municipality's [BOROUGH'S] second fiscal year; 12 and 13 (3) $100,000 for the municipality's [BOROUGH'S] third fiscal year. 14 (b) The department shall disburse the first organization grant to a borough or 15 unified municipality within 30 days after certification of the [INCORPORATION] 16 election favoring incorporation [OF A BOROUGH], or as soon after that as money is 17 appropriated and available for the purpose. The second grant shall be disbursed within 18 30 days after the beginning of the municipality's [ BOROUGH'S] second fiscal year, 19 or as soon after that as money is appropriated and available for the purpose. The third 20 grant shall be disbursed within 30 days after the beginning of the municipality's 21 [BOROUGH'S] third fiscal year, or as soon after that as money is appropriated and 22 available for the purpose. 23 (c) This section does not apply to a borough incorporated by consolidation or 24 to a unified municipality that occupies the area formerly occupied by a borough. 25 * Sec. 13. AS 29.05.210 is amended to read: 26 Sec. 29.05.210. TRANSITIONAL ASSISTANCE TO BOROUGHS AND 27 UNIFIED MUNICIPALITIES. (a) Within 30 days after the date of incorporation 28 of a borough or unified municipality incorporated after December 31, 1985, the 29 department shall determine the population of the borough or unified municipality. 30 (b) The department shall provide assistance to each borough and unified 31 municipality incorporated after December 31, 1985, in
01 (1) establishing the initial sales and use tax assessment and collection 02 department if the borough or unified municipality has adopted a sales or use tax; 03 (2) determining the initial property tax assessment roll if the borough 04 or unified municipality has adopted a property tax, including contracting for 05 appraisals of property needed to complete the initial assessment. 06 (c) This section does not apply to a borough incorporated by consolidation or 07 to a unified municipality that occupies the area formerly occupied by a borough. 08 * Sec. 14. AS 29.06.040(a) is amended to read: 09 (a) The Local Boundary Commission may consider any proposed municipal 10 boundary change. It may reject the proposed change, accept the proposed change, or 11 amend [ALTER THE BOUNDARIES] and accept the proposal [AS ALTERED]. A 12 Local Boundary Commission decision under this subsection may be appealed under 13 AS 44.62 (Administrative Procedure Act). 14 * Sec. 15. AS 29.06.090(a) is amended to read: 15 (a) Two or more municipalities may merge or consolidate to form a single 16 general law or home rule municipality, except a third class borough may not be 17 formed through merger or consolidation. 18 * Sec. 16. As 29.06.100(b) is amended to read: 19 (b) The petition includes 20 (1) the name and class of each existing municipality; 21 (2) the name and class of the proposed municipality; 22 (3) the proposed composition and apportionment of the governing body; 23 (4) maps, documents, and other information that shows that the 24 proposed municipality meets the standards for municipal incorporation; 25 (5) for a home rule municipality, a proposed home rule charter. 26 * Sec. 17. AS 29.06.130(a) is amended to read: 27 (a) If the Local Boundary Commission determines that the proposed 28 municipality fails to meet the standards for incorporation, it shall reject the merger or 29 consolidation petition. If the commission determines that the proposed municipality 30 meets these standards, it may [SHALL] accept the petition or amend [. IF THE 31 COMMISSION DETERMINES THAT THE PROPOSED BOUNDARIES OR THE
01 COMPOSITION AND APPORTIONMENT OF THE GOVERNING BODY CAN BE 02 ALTERED TO MEET THE STANDARDS, IT MAY ALTER THE PROPOSAL] and 03 accept the petition. 04 * Sec. 18. AS 29.06.140(b) is amended to read: 05 (b) A home rule charter in a merger or consolidation petition submitted 06 under AS 29.06.100(b)(5) is part of the merger or consolidation question. The 07 charter is adopted if the voters approve the merger or consolidation. The director 08 of elections shall supervise the election in the general manner prescribed by AS 15 09 (Election Code). The state shall pay all election costs. 10 * Sec. 19. AS 29.06.190 is amended by adding a new subsection to read: 11 (b) An area that is not incorporated as a borough, including any cities in the 12 area, may incorporate as a unified municipality under AS 29.05.031. 13 * Sec. 20. AS 29.06.470(a) is amended to read: 14 (a) Except as provided in (b) of this section, voters of a municipality may 15 petition for dissolution when the municipality is free of debt, or, if in debt, each of its 16 creditors is satisfied with a method of repayment and 17 (1) the municipality no longer meets the minimum standards prescribed 18 for incorporation by AS 29.05, or former AS 29.18.030 if it is a third class borough; 19 (2) the municipality ceases to use each of its mandatory powers; or 20 (3) the dissolution petition filed under AS 29.06.460 is signed by a 21 number of voters of the municipality proposed to be dissolved greater than 50 percent 22 of the number of votes cast in the last regular [GENERAL] election in that 23 municipality. 24 * Sec. 21. AS 29.06.500(a) is amended to read: 25 (a) If the Local Boundary Commission determines that a municipality fails to 26 meet the standards for dissolution, it shall reject the petition. [IF THE COMMISSION 27 DETERMINES THAT THE MUNICIPALITY MEETS THE STANDARDS UNDER 28 AS 29.06.470(A)(1) OR (2), IT SHALL ACCEPT THE PETITION.] If the 29 commission determines that the petition meets the standards under AS 29.06.470(a)(1), 30 (2), or (3) [AS 29.06.470(a)(3)] and that dissolution of the municipality is in the best 31 interest of the state, it shall accept the petition. The commission may amend the
01 proposal and accept the petition. 02 * Sec. 22. AS 29.06.520 is amended to read: 03 Sec. 29.06.520. SUCCESSION [TO ASSETS AND LIABILITIES]. A 04 municipality succeeding to a dissolved municipality succeeds to all rights, powers, 05 duties, assets, and liabilities of the dissolved municipality. Otherwise, the state 06 succeeds to those rights, powers, duties, assets, and liabilities. If the state succeeds 07 to a dissolved municipality, the state may enter into a contract for the performance of 08 duties or powers in the area of the dissolved municipality. However, a contract with 09 an organization for the performance of duties or powers entered into under this section 10 does not constitute recognition by the state of governmental powers of that 11 organization. 12 * Sec. 23. AS 29.10.010(c) is amended to read: 13 (c) At an incorporation, merger, or consolidation election a municipality 14 [FOR BOROUGH INCORPORATION, AN AREA IN THE UNORGANIZED 15 BOROUGH] may adopt a charter for its own government and incorporate, merge, or 16 consolidate as a home rule city, borough, or unified municipality. 17 * Sec. 24. AS 29.10.010(f) is amended to read: 18 (f) The proposed charter for a home rule municipality to be formed by 19 incorporation, merger, or consolidation [AN AREA OF THE UNORGANIZED 20 BOROUGH] shall be prepared by the petitioners and filed [UNDER AS 29.05.060] 21 with the petition to incorporate, merge, or consolidate a home rule city, borough, or 22 unified municipality. 23 * Sec. 25. AS 29.10.020 is amended to read: 24 Sec. 29.10.020. MODEL CHARTERS. The department shall prepare at least 25 one model home rule charter for a city, borough, and unified municipality. The 26 model charters [CHARTER] shall be made available to persons interested in filing a 27 petition to form [INCORPORATE] a home rule municipality [BOROUGH] under 28 AS 29.05.060 or AS 29.06.090. 29 * Sec. 26. AS 29.10.070 is amended to read: 30 Sec. 29.10.070. CHARTER ELECTION. The proposed home rule charter for 31 an existing municipality shall be submitted to the voters at an election held not less
01 than 30 days or more than 90 days after the proposed charter is published. The 02 proposed home rule charter for a home rule municipality to be formed by 03 incorporation, merger, or consolidation [AN AREA IN THE UNORGANIZED 04 BOROUGH] shall be submitted to the voters at an [INCORPORATION] election held 05 under AS 29.05.110 or AS 29.06.140. 06 * Sec. 27. AS 29.10.080(a) is amended to read: 07 (a) If a majority of those voting in an existing municipality favor the proposed 08 charter or if a majority of those voting to form a home rule municipality by 09 incorporation, merger, or consolidation [IN AN AREA IN THE UNORGANIZED 10 BOROUGH] favor incorporation, merger, or consolidation [OF A HOME RULE 11 BOROUGH], the proposed charter becomes the organic law of the municipality 12 effective on the date the election is certified. Thereafter, a court shall take judicial 13 notice of the charter. The new home rule municipality shall file the indicated number 14 of copies of the charter with 15 (1) the lieutenant governor - two copies; 16 (2) the department - two copies; 17 (3) the district recorder - one copy; 18 (4) the municipal clerk - one copy. 19 * Sec. 28. AS 29.10.090(b) is amended to read: 20 (b) If incorporation, merger, or consolidation of a home rule municipality 21 [BOROUGH] is rejected by the voters [IN AN AREA IN THE UNORGANIZED 22 BOROUGH], the proposed charter is rejected. 23 * Sec. 29. AS 29.10.100 is amended by adding a new subsection to read: 24 (c) If a charter is amended, the municipality shall file the indicated number of 25 copies of the revised charter with 26 (1) the lieutenant governor - two copies; 27 (2) the department - two copies; 28 (3) the district recorder - one copy; 29 (4) the municipal clerk - one copy. 30 * Sec. 30. AS 44.47.567(a) is amended to read: 31 (a) The local boundary commission shall
01 (1) make studies of local government boundary problems; 02 (2) adopt regulations providing [DEVELOP PROPOSED] standards 03 and procedures for municipal incorporation, annexation, detachment, merger, 04 consolidation, reclassification, and dissolution [CHANGING LOCAL BOUNDARY 05 LINES]; 06 (3) consider a local government boundary change requested of it by the 07 legislature, the commissioner of community and regional affairs, or a political 08 subdivision of the state; and 09 (4) develop standards and procedures for the extension of services and 10 ordinances of incorporated cities into contiguous areas for limited purposes upon 11 majority approval of the voters of the contiguous area to be annexed and prepare 12 transition schedules and prorated tax mill levies as well as standards for participation 13 by voters of these contiguous areas in the affairs of the incorporated cities furnishing 14 services. 15 * Sec. 31. AS 29.04.040(c) and AS 29.10.010(b) are repealed.