Legislature(2005 - 2006)BUTROVICH 205

04/06/2005 08:30 AM Senate JUDICIARY


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 128 BOROUGH INCORPORATION TELECONFERENCED
Heard & Held
*+ SB 135 ASSAULT & CUSTODIAL INTERFERENCE TELECONFERENCED
Scheduled But Not Heard
+ Bills Previously Heard/Scheduled TELECONFERENCED
= SB 130 WORKERS' COMPENSATION
Heard & Held
                  SB 128-BOROUGH INCORPORATION                                                                              
                                                                                                                                
8:38:00 AM                                                                                                                    
MR. DAVE  STANCLIFF, staff to  Senator Therriault,  introduced SB
128. The adjustment in statutory language is constitutional.                                                                    
                                                                                                                                
8:39:39 AM                                                                                                                    
MR. STANCLIFF informed  currently when a group  of people propose                                                               
a boundary  change, the  Local Boundary  Commission (LBC)  may or                                                               
may not  consider it, but  if the government proposes  a boundary                                                               
change, the LBC must consider it.                                                                                               
                                                                                                                                
8:41:15 AM                                                                                                                    
MR. STANCLIFF researched  the intent back to the  founders of the                                                               
Alaska Constitution.                                                                                                            
                                                                                                                                
8:43:03 AM                                                                                                                    
MR. STANCLIFF quoted from Senator Vic Fisher:                                                                                   
"The borough, as  visualized here, is even more than  just a unit                                                               
of local  government; it  is also  a unit  for carrying  out what                                                               
otherwise  is  carried  out  as   state  functions.  We  (indisc)                                                               
visualize that  the state will  force boroughs to  organize since                                                               
we feel they  should be set up  on such a basis  that there would                                                               
be enough inducement for each to organize."                                                                                     
                                                                                                                                
8:45:18 AM                                                                                                                    
MR. STANCLIFF  asserted SB 128  does not restrict the  ability of                                                               
the LBC to consider any local change brought before it.                                                                         
                                                                                                                                
8:47:09 AM                                                                                                                    
MR. STANCLIFF aired government should  originate with the people,                                                               
and  especially with  regards to  borough formation  and boundary                                                               
changes.                                                                                                                        
                                                                                                                                
8:48:38 AM                                                                                                                    
MR.  DARROLL  HARGRAVES,  chairman,  Local  Boundary  Commission,                                                               
testified  against  SB  128.  The  members of  the  LBC  are  not                                                               
interested  in  working  fulltime   to  advocate  anything.  They                                                               
respond to petitions  and legistrative mandates. It  is not their                                                               
purpose to look  for borough planning and  forming. The precedent                                                               
has been  set in establishing  boroughs and cities and  should be                                                               
protected.                                                                                                                      
                                                                                                                                
8:51:23 AM                                                                                                                    
MR.  HARGRAVES continued  some people  resist borough  formation.                                                               
Most of  the population is in  a local borough that  was mandated                                                               
by the Legislature. Delegate Barry  White expressed optimism that                                                               
the  State   of  Alaska  would   offer  incentives   for  borough                                                               
formation.                                                                                                                      
                                                                                                                                
8:54:13 AM                                                                                                                    
The  eight  boroughs  of   Fairbanks,  Mat-Su,  Anchorage,  Kenai                                                               
Peninsula,  Kodiak Island,  Sitka, Juneau  and Ketchikan  take in                                                               
nearly 7 out of every 8 Alaskan citizens.                                                                                       
                                                                                                                                
8:55:38 AM                                                                                                                    
The 1972  Legislature mandated that  each second-class  city with                                                               
at least  400 residents should  be reclassified as a  first class                                                               
city.                                                                                                                           
                                                                                                                                
8:57:32 AM                                                                                                                    
MR.  HARGRAVES  added  the  LBC  has  concerns  that  SB  128  is                                                               
unconstitutional.                                                                                                               
                                                                                                                                
8:58:25 AM                                                                                                                    
SENATOR GENE  THERRIAULT advised Mr. Hargraves  there would still                                                               
be  two  methods  of  borough  formation,  the  difference  being                                                               
elected officials are involved in the process.                                                                                  
                                                                                                                                
9:00:03 AM                                                                                                                    
CHAIR  SEEKINS  asked  Mr.  Hargraves   to  clarify  his  opening                                                               
remarks.                                                                                                                        
                                                                                                                                
MR.  HARGRAVES   explained  the  LBC  typically   does  not  wage                                                               
campaigns in  regards to  legislative matters.  The LBC  does not                                                               
typically  seek  to  organize   boroughs.  The  LBC  responds  to                                                               
petitions by  having hearings. In  this case, the LBC  opposes SB
128 as it is seen as a negative for statewide policy.                                                                           
                                                                                                                                
CHAIR SEEKINS asked whether the  LBC has ever initiated a borough                                                               
formation.                                                                                                                      
                                                                                                                                
MR. HARGRAVES  replied no.  Requests always come  to them  in the                                                               
form of an initiative or a local option.                                                                                        
                                                                                                                                
9:02:28 AM                                                                                                                    
CHAIR RALPH SEEKINS expressed concern  with Mr. Hargraves' use of                                                               
the words "typically" and "for the most part."                                                                                  
                                                                                                                                
SENATOR GRETCHEN  GUESS asked Senator Therriault  the process for                                                               
when two communities want to form  a borough and asked how SB 128                                                               
would contribute to the process.                                                                                                
                                                                                                                                
SENATOR  THERRIAULT said  there are  currently citizen  groups in                                                               
the Delta Junction area who are using the Title 29 route.                                                                       
                                                                                                                                
SENATOR GUESS  asked whether  SB 128  would prohibit  anyone from                                                               
forming a borough.                                                                                                              
                                                                                                                                
                                             th                                                                                 
SENATOR THERRIAULT  answered no.  The April 5   opinion  from Ms.                                                               
Tamara Cook says, "The bill  does not prohibit the Local Boundary                                                               
Commission from  considering a  borough corporation  requested of                                                               
it by any entity if it chooses to do so."                                                                                       
                                                                                                                                
9:05:04 AM                                                                                                                    
SENATOR  HOLLIS FRENCH  asked the  option  for the  LBC should  a                                                               
member  of the  Department  of Community  & Economic  Development                                                               
(DCED)  come  to   them  and  suggest  a   location  for  borough                                                               
formation.                                                                                                                      
                                                                                                                                
MR.   STANCLIFF  answered   the  commission   would  have   total                                                               
discretion.                                                                                                                     
                                                                                                                                
SENATOR  THERRIAULT referenced  a 1959  attorney general  opinion                                                               
that quoted  a section of  statute that was repealed.  "Since the                                                               
commission  may consider  any local  government  boundary or  any                                                               
proposed  local boundary  change,  it exercises  other powers  as                                                               
prescribed  by law.  It shall  present proposed  local government                                                               
boundaries   or  local   government  boundary   changes  to   the                                                               
Legislature  during the  first  ten days  of  every session."  In                                                               
previous statute  it differentiated between a  local boundary and                                                               
a local  boundary change. No  borough has ever been  formed under                                                               
Title 44 as  a local boundary change. That  methodology has never                                                               
been used in the State of Alaska.                                                                                               
                                                                                                                                
9:08:04 AM                                                                                                                    
SENATOR  CHARLIE  HUGGINS  asked  Mr. Hargraves  whether  he  was                                                               
involved in the Valdez initiative.                                                                                              
                                                                                                                                
MR. HARGRAVES answered  the LBC has not received  a petition from                                                               
Valdez. Some communities  in that area have  petitioned to become                                                               
a borough.                                                                                                                      
                                                                                                                                
SENATOR  HUGGINS asked  for  clarification that  the  LBC is  not                                                               
currently working on anything that would include Valdez.                                                                        
                                                                                                                                
MR.  HARGRAVES  asserted the  LBC  is  not currently  working  on                                                               
anything to do with Valdez.                                                                                                     
                                                                                                                                
9:10:18 AM                                                                                                                    
CHAIR SEEKINS  asked whether Mr.  Hargraves knew of  any activity                                                               
regarding the Valdez area.                                                                                                      
                                                                                                                                
MR. HARGRAVES  answered local  municipalities are  always looking                                                               
at  the  expansion of  boundaries  but  that doesn't  become  LBC                                                               
activity. There is an old petition  that was presented to the LBC                                                               
but he  couldn't say what has  been done. Nothing is  in front of                                                               
the LBC today in regards to Valdez.                                                                                             
                                                                                                                                
9:12:17 AM                                                                                                                    
BOB HICKS,  vice chair, LBC,  testified in opposition of  SB 128.                                                               
Local   political  decisions   do  not   usually  create   proper                                                               
boundaries. Boundaries should be  established at the state level.                                                               
Article 10 Section 12 of  the Alaska Constitution implements that                                                               
policy.  It creates  the LBC  and it  devotes three  sentences to                                                               
creating  the  legislative  review  process.  The  last  sentence                                                               
provides for local  option elections as an  alternative method to                                                               
the legislative review.                                                                                                         
                                                                                                                                
9:14:59 AM                                                                                                                    
MR. HICKS continued  the Alaska Supreme Court has  ruled twice on                                                               
this in the past and they  said the Section 12 legislative review                                                               
method coexists with all the  other processes established by law.                                                               
Section 12 is  independent of the other processes.  SB 128 amends                                                               
the present  statute to  say that  a boundary  change may  not be                                                               
construed  to  include  borough  incorporation  for  purposes  of                                                               
petitions originating  from any of  three legal sources.  That is                                                               
different from the way it  was originally advertised in the press                                                               
releases. He  wondered why  SB 128  doesn't address  all boundary                                                               
changes.                                                                                                                        
                                                                                                                                
9:17:17 AM                                                                                                                    
MR.  HICKS maintained  SB  128 is  susceptible  to two  different                                                               
interpretations. One  is that the  LBC cannot consider  a borough                                                               
incorporation request. Government originates  with the people. SB
128  disenfranchises every  political  subdivision  in the  state                                                               
from  requesting  boundary  incorporation.   SB  128  limits  the                                                               
borough  incorporation  process  now  only to  the  local  option                                                               
election. The Alaska Supreme Court  has repeatedly recognized the                                                               
constitutional  policy  that  local political  decisions  do  not                                                               
create  proper boundaries.  SB 128  will  repeal the  legislative                                                               
review method. SB 128 will  leave all future boundaries solely to                                                               
local  elections. For  these  reasons, SB  128  will be  declared                                                               
unconstitutional.                                                                                                               
                                                                                                                                
9:19:53 AM                                                                                                                    
SENATOR FRENCH  asked Mr.  Hicks his  interpretation of  the word                                                               
"change" in Section 12.                                                                                                         
                                                                                                                                
9:22:41 AM                                                                                                                    
MR.  HICKS said  creation  of  a borough  results  in a  boundary                                                               
change  in  the  same  way  that the  two  Alaska  Supreme  Court                                                               
decisions  say that  disillusion of  a corporation  results in  a                                                               
boundary change  under Section  12. A  boundary change  exists as                                                               
soon as an organized borough is created.                                                                                        
                                                                                                                                
9:25:01 AM                                                                                                                    
SENATOR  GUESS referenced  Ms. Tamara  Cook's memo,  which stated                                                               
"The  bill does  not prohibit  the LBC  from considering  borough                                                               
incorporation requested of  it by any entity if it  chooses to do                                                               
so." She  asked Mr. Stancliff  whether there was anything  in the                                                               
current statute that instructs the  commission on which petitions                                                               
to consider.                                                                                                                    
                                                                                                                                
MR. STANCLIFF  said the  latitude constitutionally  clearly rests                                                               
with the  constitution to  set the  conditions and  the standards                                                               
and  the  criteria. There  is  nothing  in the  Legislature  that                                                               
suggests a stronger  directive. He advised he  has detailed email                                                               
communications from LBC staff.                                                                                                  
                                                                                                                                
9:27:32 AM                                                                                                                    
CHAIR SEEKINS asked  for copies of the communication.  He held SB
128 in committee.                                                                                                               

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