05/07/2005 09:00 AM House COMMUNITY & REGIONAL AFFAIRS

SB 128-BOROUGH INCORP. IS NOT BOUNDARY CHANGE                                                                                 
                                                                                                                                
9:14:06 AM                                                                                                                    
                                                                                                                                
CO-CHAIR OLSON  announced that the  only order of  business would                                                               
be SENATE BILL  NO. 128 am, "An Act relating  to consideration by                                                               
the   Local   Boundary   Commission  of   a   requested   borough                                                               
incorporation."                                                                                                                 
                                                                                                                                
9:14:08 AM                                                                                                                    
                                                                                                                                
DAVE STANCLIFF,  Staff to Senator  Gene Therriault,  Alaska State                                                               
Legislature, explained that SB 128  am addresses whether or not a                                                               
borough should be formed under Title  44.  He turned attention to                                                               
page 1, lines  12-13, which specifies that if  the Local Boundary                                                               
Commission (LBC)  wants to use its  constitutional prerogative to                                                               
form a borough under Title 44,  it may.  However, the legislature                                                               
will no longer mandate it.                                                                                                      
                                                                                                                                
9:15:20 AM                                                                                                                    
                                                                                                                                
MR. STANCLIFF pointed  out that if the constitution  says the LBC                                                               
has the  ultimate discretion to  consider whether or not  it uses                                                               
Title 44,  then the question  is whether the word  "shall" really                                                               
has any meaning.   He related that Senator  Therriault feels that                                                               
with annexations and existing boundaries  there may be reason for                                                               
that  language to  remain.   However, if,  for the  origin of  an                                                               
entirely new borough, the LBC  decides to proceed under Title 44,                                                               
then it  shouldn't be  under the cover  of a  legislative mandate                                                               
but   rather  through   the  LBC's   full   discretion  via   the                                                               
constitution.                                                                                                                   
                                                                                                                                
9:16:31 AM                                                                                                                    
                                                                                                                                
MR.  STANCLIFF  highlighted  the legislation's  intent  language,                                                               
which  is  intended  to clarify  that  the  legislature,  through                                                               
adoption  of  this  provision,   doesn't  intend  to  enlarge  or                                                               
diminish  the  LBC's  constitutional  authority.    However,  the                                                               
intent language  does not specifically reference  Title 44 action                                                               
because  the  desire  is  for  the intent  language  to  be  all-                                                               
inclusive and include  Title 29, which is  the traditional manner                                                               
in which  boroughs are  formed.  Mr.  Stancliff opined  that this                                                               
legislation   places  [statute]   more   in   harmony  with   the                                                               
constitution and  states that  should the  LBC decide  to proceed                                                               
under Title 44, it should do so own its own.                                                                                    
                                                                                                                                
9:18:15 AM                                                                                                                    
                                                                                                                                
MR.  STANCLIFF, in  response  to  Representative Neuman,  related                                                               
that Title  44 is the  legislative process,  which seems to  be a                                                               
bit  of a  misnomer.   He  related that  the  City of  Whittier's                                                               
Council  filed a  request, under  Title 44,  that fell  under the                                                               
mandate of the  existing language.  Therefore, the  LBC said that                                                               
it  had to  consider the  request to  form a  new borough  around                                                               
Whittier.    The  LBC  accepted  the  request  and  directed  the                                                               
Division of Community Advocacy to  draw up the boundary petition.                                                               
Unlike Title  29, which  includes public  hearings and  a locally                                                               
generated petition,  Title 44 is  a faster track because  it goes                                                               
around Title 29  and an agency of the  executive [branch] creates                                                               
the petition.   Although  there will  be public  comment periods,                                                               
they are not at the same level as  with the Title 29 process.  As                                                               
policymakers,  the legislators  have  to  determine whether  it's                                                               
comfortable with mandating  that kind of process  in the creation                                                               
of a new borough.                                                                                                               
                                                                                                                                
9:20:13 AM                                                                                                                    
                                                                                                                                
MR. STANCLIFF  informed the  committee that  the courts  have not                                                               
ruled  that  a boundary  change  takes  in incorporation  or  the                                                               
genesis  of  a new  boundary.    Until  there  is a  clear  court                                                               
definition as to  whether the LBC simply has the  power to change                                                               
or  create boundaries,  the effect  of Title  44 is  in question.                                                               
This is  the first time in  the state's history that  the LBC has                                                               
used Title 44 for creation of an entirely new boundary.                                                                         
                                                                                                                                
9:21:00 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN  related his understanding then  that Title                                                               
29 allows  for public input into  the process that will  be used,                                                               
while Title 44 allows the  LBC to form regulations without public                                                               
input.                                                                                                                          
                                                                                                                                
MR. STANCLIFF  opined that  the public is  much more  involved in                                                               
the formation process of the borough under Title 29.                                                                            
                                                                                                                                
9:22:16 AM                                                                                                                    
                                                                                                                                
SALLY  SADDLER,  Legislative  Liaison,  Department  of  Commerce,                                                               
Community, & Economic  Development (DCCED), stated the  SB 128 am                                                               
is acceptable to the department.                                                                                                
                                                                                                                                
9:22:45 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  OLSON,  upon determining  there  was  no one  else  who                                                               
wished to testify, closed public testimony.                                                                                     
                                                                                                                                
9:22:55 AM                                                                                                                    
                                                                                                                                
CO-CHAIR THOMAS moved  to report SB 128 am out  of committee with                                                               
individual  recommendations and  the  accompanying fiscal  notes.                                                               
There being no objection, it was so ordered.