SB 48: "An Act relating to the determination of full and true value of taxable municipal property for purposes of calculating funding for education and certain other programs; and relating to incorporation of second class boroughs in the unorganized borough and to annexation of portions of the unorganized borough to boroughs and unified municipalities."
00 SENATE BILL NO. 48 01 "An Act relating to the determination of full and true value of taxable municipal 02 property for purposes of calculating funding for education and certain other programs; 03 and relating to incorporation of second class boroughs in the unorganized borough and 04 to annexation of portions of the unorganized borough to boroughs and unified 05 municipalities." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 14.17.510(a) is amended to read: 08 (a) To determine the amount of required local contribution under 09 AS 14.17.410(b)(2) and to aid the department and the legislature in planning, the 10 Department of Community and Economic Development, in consultation with the 11 assessor for each district in a city or borough, shall determine the full and true value of 12 the taxable real and personal property in each district in a city or borough. If there is 13 no local assessor or current local assessment for a city or borough school district, then
01 the Department of Community and Economic Development shall make the 02 determination of full and true value from information available. In making the 03 determination, the Department of Community and Economic Development shall be 04 guided by AS 29.45.110. However, the full and true value of taxable real and 05 personal property in any area detached shall be excluded from the determination 06 of the full and true value of the municipality from which the property was 07 detached for the two years immediately preceding the effective date of the 08 detachment. Also, in making the determination for a municipality that is a 09 school district or for a city that is within a borough school district, the assessed 10 value of property taxable under AS 43.56 shall be excluded if a municipal tax is 11 not levied under AS 29.45.080 in that school district. The determination of full and 12 true value shall be made by October 1 and sent by certified mail, return receipt 13 requested, on or before that date to the president of the school board in each city or 14 borough school district. Duplicate copies shall be sent to the commissioner. The 15 governing body of a city or borough that is a school district may obtain judicial review 16 of the determination. The superior court may modify the determination of the 17 Department of Community and Economic Development only upon a finding of abuse 18 of discretion or upon a finding that there is no substantial evidence to support the 19 determination. 20 * Sec. 2. AS 44.33 is amended by adding a new section to article 11 to read: 21 Sec. 44.33.830. Incorporation or annexation of unorganized areas. (a) In 22 addition to other methods for incorporation and annexation provided by law, an area 23 of the unorganized borough may be incorporated as a second class borough or annexed 24 to an existing borough or unified municipality under (b) - (f) of this section. 25 AS 44.33.814 - 44.33.828 apply to actions taken by the commission under this section. 26 (b) The Department of Community and Economic Development shall 27 determine which areas of the unorganized borough reasonably appear to satisfy 28 standards for borough incorporation or for annexation to an existing borough or 29 unified municipality. By September 30 of each year, the department shall present to 30 the Local Boundary Commission a list of those areas that reasonably appear to satisfy 31 standards for borough incorporation or for annexation to an existing borough or
01 unified municipality, together with the department's analysis supporting its 02 conclusions regarding the incorporation or annexation standards for each of the areas. 03 By November 30 of each year, the commission shall select areas from the list provided 04 by the department that the commission determines may warrant incorporation or 05 annexation. By March 31 of the following year, the department shall prepare a 06 petition for borough incorporation or for annexation of each of the areas selected by 07 the commission. The department shall conduct at least one public meeting in each 08 area for the purpose of gathering information needed to prepare the petition. The 09 department shall provide public notice when the petition has been prepared, make 10 copies of the petition available, and provide any interested person with the opportunity 11 to submit written comments on the petition. After considering the comments, the 12 department may amend the petition. The department shall file the original petition or, 13 if amended, the amended petition with the commission. 14 (c) Upon receipt of a petition filed under (b) of this section, the Local 15 Boundary Commission shall hold at least one public hearing in or near the area 16 proposed for incorporation or annexation. Following the hearing, the commission may 17 amend the petition and may impose conditions on the incorporation or annexation. If 18 the commission determines that the incorporation or annexation meets applicable 19 standards under the state constitution as well as those established by law and 20 commission regulation and is in the best interests of the state, it may accept the 21 petition. Otherwise, it shall reject the petition. Each incorporation or annexation 22 approved by the commission shall be submitted to the legislature under AS 44.33.828 23 and takes effect as provided in that section. 24 (d) Regulations of the Local Boundary Commission filed under authority of 25 other provisions of law that apply to incorporation and annexation petitions and that 26 deal with the form and content of petitions, public notice of the filing of petitions, 27 service of petitions, opportunity to file responsive briefs, amendment of petitions, 28 notice and conduct of hearings, conduct of decisional sessions, and reconsideration 29 apply to the preparation and consideration of petitions under this section to the extent 30 they may be applied without conflicting with this section. The Local Boundary 31 Commission may adopt regulations providing additional standards and procedures for
01 incorporations or boundary changes under this section and to carry out the purposes of 02 this section. 03 (e) When a proposal for incorporation of an area under this section becomes 04 effective, the Local Boundary Commission shall immediately notify the director of 05 elections. Within 30 days after notification, the director of elections shall order an 06 election in the area for initial borough officials. The election shall be held under 07 AS 29.05.120 not less than 30 nor more than 90 days after the date of the election 08 order. The election order must specify the dates during which nomination petitions for 09 election of initial officials may be filed. AS 29.05.130 - 29.05.150, 29.05.190 - 10 29.05.210, and AS 29.65.030 apply to boroughs incorporated under this section. 11 (f) When a proposal under this section for annexation of an area in the 12 unorganized borough becomes effective, the borough or unified municipality to which 13 the area is annexed shall receive an additional general grant land entitlement equal to 14 10 percent of the maximum total acreage of vacant, unappropriated, unreserved land 15 within the boundaries of the area annexed. Additional general grant land entitlements 16 under this subsection are subject to AS 29.65.030 - 29.65.140 to the extent that those 17 provisions can be made applicable. The borough or unified municipality to which the 18 area is annexed is also entitled to an organization grant under AS 29.05.190, and, for 19 purposes of applying that section, the effective date of the annexation shall be treated 20 as though it were the date of incorporation.