Legislature(2001 - 2002)

02/14/2001 01:13 PM House JUD

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
HB 13 - SERVICE AREAS:VOTER APPROVAL/TAX ZONES                                                                                
                                                                                                                                
Number 0029                                                                                                                     
                                                                                                                                
CHAIR ROKEBERG announced  that the first order  of business would                                                               
be SPONSOR SUBSTITUTE FOR HOUSE BILL  NO. 13, "An Act relating to                                                               
municipal service areas  and providing for voter  approval of the                                                               
formation, alteration, or abolishment  of certain service areas."                                                               
[Adopted as a work draft at the previous hearing was version 22-                                                                
LS0164\F, Cook, 2/3/01.]                                                                                                        
                                                                                                                                
Number 0147                                                                                                                     
                                                                                                                                
REPRESENTATIVE  CON  BUNDE,  Alaska State  Legislature,  sponsor,                                                               
began his opening  remarks by acknowledging the  presence, at the                                                               
last hearing  on the proposed  CS, of one  of the members  of the                                                               
Constitutional  [Convention, former  Senator Fischer].   He  felt                                                               
sure that  all of  the members  of the  Constitutional Convention                                                               
would  have  agreed that  the  Alaska  State Constitution  was  a                                                               
living document,  and that it  spoke very strongly to  checks and                                                               
balances.   In his  view, the  proposed CS  was about  checks and                                                               
balances; it would allow local folks  to check the power of local                                                               
government if  they wish.   Power should  lie with the  voter and                                                               
not with local government.  The  key issue in the proposed CS was                                                               
local  government and  local  control, and  how  to define  local                                                               
control.  He  noted that the committee had  already heard dueling                                                               
legal opinions, but  he put far more faith in  the opinion of the                                                               
legislature's   attorney.      He    added   that   nothing   was                                                               
unconstitutional  until it  was  found  to be  so  by the  Alaska                                                               
Supreme  Court.   He commented  that legislative  will should  be                                                               
taken into  account, and that  the legislature was  responsive to                                                               
its constituency.   He reminded  the committee that this  was not                                                               
just a  parochial issue -  people in the  Matanuska-Susitna (Mat-                                                               
Su) valley and in Fairbanks also had a very strong interest.                                                                    
                                                                                                                                
CHAIR ROKEBERG observed that the  committee had recently received                                                               
a  letter  from Mr.  Gatti,  attorney  for the  Matanuska-Susitna                                                               
Borough, and a letter from Larry DeVilbiss.                                                                                     
                                                                                                                                
Number 0513                                                                                                                     
                                                                                                                                
HEATHER  M.  NOBREGA,  Staff to  Representative  Rokeberg,  House                                                               
Judiciary Standing Committee,  Alaska State Legislature, provided                                                               
comments on  the constitutional aspects  of the proposed CS.   It                                                               
was her belief  that the proposed CS  was constitutionally sound.                                                               
In 1974, the  Alaska Supreme Court found, with  regard to Article                                                               
X, Section  11, of the  state constitution, that while  home rule                                                               
powers  were  intended  to  be broadly  applied,  they  were  not                                                               
intended  to be  preeminent;  the legislature  could dictate  how                                                               
they wanted it  done.  [The legislature] could  bring forth rules                                                               
that limit those powers.                                                                                                        
                                                                                                                                
Number 0590                                                                                                                     
                                                                                                                                
REPRESENTATIVE  BERKOWITZ  referred  to  Alaska's  Constitutional                                                             
Convention, page 121, regarding  the structure of government that                                                             
reads as follows:  "In all  cases, however, service areas were to                                                               
be  creatures  of  boroughs and  function  under  borough  fiscal                                                               
control."    He  asked  Ms.  Nobrega  how  this  fits  under  her                                                               
analysis.                                                                                                                       
                                                                                                                                
MS.  NOBREGA   offered  that  Article   X,  Section  5,   of  the                                                               
constitution,  states that  [a service  area] is  subject to  the                                                               
provisions of  law or charter, and  that is what the  proposed CS                                                               
is  doing.   It creates  a law  that would  rule how  the service                                                               
areas were implemented.  She  said she would agree, however, with                                                               
Representative Berkowitz,  that it  is possible for  something to                                                               
be constitutionally  permissible, yet  contrary to the  spirit of                                                               
the drafters [of the Alaska State Constitution].                                                                                
                                                                                                                                
Number 0704                                                                                                                     
                                                                                                                                
CHAIR ROKEBERG  confirmed that this  was a very  difficult issue,                                                               
it was  not a clear-cut  case and  there were splits  of opinion.                                                               
He was  taken with  the message from  Mr. DeVilbiss  that stated:                                                               
"HB 13 is good  for the little guys in service  areas who have at                                                               
least  a little  control over  what is  good for  them.   That is                                                               
good," and felt  the statement encapsulated the whole  issue.  He                                                               
agreed with Representative Berkowitz that  there was not a clear-                                                               
cut  area   from  which   to  interpret   this  constitutionally.                                                               
However, from  the preponderance of evidence  heard, coupled with                                                               
the  opinion  of  Legislative  Legal  Services,  he  believed  it                                                               
indicated   that   [the    proposed   CS]   was   constitutional.                                                               
Furthermore, the legislature had  a responsibility, and certainly                                                               
the right, to enact legislation in areas that may be gray.                                                                      
                                                                                                                                
Number 0764                                                                                                                     
                                                                                                                                
REPRESENTATIVE  BERKOWITZ made  a  motion to  adopt Amendment  1,                                                               
which read:                                                                                                                     
                                                                                                                                
     Page 1, line 4 through page 2, line 23                                                                                     
     Delete all material                                                                                                        
     Renumber following sections accordingly                                                                                    
                                                                                                                                
Number 0821                                                                                                                     
                                                                                                                                
REPRESENTATIVE   COGHILL   objected.     During   the   following                                                               
discussion, he  said Amendment 1  would be contrary to  what they                                                               
were trying to  enact in the title and would  also go against the                                                               
sponsor's  recommendations.   In addition,  service districts  in                                                               
the Fairbanks area  would no longer have  assistance in obtaining                                                               
some degree of authority.                                                                                                       
                                                                                                                                
REPRESENTATIVE BERKOWITZ mentioned that  it was his understanding                                                               
that Amendment 1 would receive widespread support in Fairbanks.                                                                 
                                                                                                                                
REPRESENTATIVE COGHILL countered that he  did not think anyone in                                                               
his district  had had  the opportunity to  address what  would be                                                               
left of the proposed CS, should Amendment 1 be adopted.                                                                         
                                                                                                                                
REPRESENTATIVE BUNDE  added that he  had spoken with a  road area                                                               
supervisor from  the Fairbanks area,  Mr. Frank, who  was adamant                                                               
that,  for their  needs, the  proposed CS  needed to  include the                                                               
provisions that Amendment 1 would remove.                                                                                       
                                                                                                                                
Number 1069                                                                                                                     
                                                                                                                                
A roll  call vote was  taken.  Representatives  Meyer, Berkowitz,                                                               
and  Kookesh voted  for  Amendment  1. Representatives  Rokeberg,                                                               
Ogan,  and Coghill  voted against  Amendment 1.   [Representative                                                               
James was  absent.]  Therefore, Amendment  1 failed by a  vote of                                                               
3-3.                                                                                                                            
                                                                                                                                
REPRESENTATIVE  MEYER explained  that while  the bill  was before                                                               
the  House Community  and  Regional  Affairs Standing  Committee,                                                               
many of  the same discussions  took place.  He  acknowledged that                                                               
some members  of his  constituency were  opposed to  the proposed                                                               
CS.  However,  because he felt that ultimately,  the courts would                                                               
have to resolve the constitutional  issues, he would be voting to                                                               
move the proposed CS out of committee.                                                                                          
                                                                                                                                
CHAIR ROKEBERG  said that it would  be a very difficult  vote for                                                               
him.  Despite  this, he was going to support  moving the proposed                                                               
CS out of committee.  He  believed it did have the constitutional                                                               
foundation to  be passed.   He had voted for  similar legislation                                                               
in the  past, but it  was still  a difficult decision  because he                                                               
understood the municipality's concerns.                                                                                         
                                                                                                                                
Number 1163                                                                                                                     
                                                                                                                                
REPRESENTATIVE COGHILL moved  to report the proposed  CS for SSHB
13,  version 22-LS0164\F,  Cook,  2/3/01, out  of committee  with                                                               
individual recommendations and the accompanying fiscal note.                                                                    
                                                                                                                                
Number 1175                                                                                                                     
                                                                                                                                
REPRESENTATIVE BERKOWITZ objected.                                                                                              
                                                                                                                                
REPRESENTATIVE   OGAN   acknowledged   that  while   there   were                                                               
conflicting  opinions on  the constitutionality  of the  proposed                                                               
CS, he had confidence in  his own ability to sense constitutional                                                               
problems.   In  addition,  he  said he  put  great  faith in  the                                                               
opinion of Tam Cook, the legislature's legal counsel.                                                                           
                                                                                                                                
Number 1252                                                                                                                     
                                                                                                                                
A  roll call  vote was  taken.   Representatives Rokeberg,  Ogan,                                                               
Meyer, and Coghill  voted in favor of moving the  proposed CS for                                                               
SSHB  13, version  22-LS0164\F,  Cook,  2/3/01.   Representatives                                                               
Berkowitz and  Kookesh voted against  it.   [Representative James                                                               
was absent.]   Therefore,  CSSSHB 13(JUD)  was reported  from the                                                               
House Judiciary Standing Committee by a vote of 4-2.                                                                            
                                                                                                                                

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