Legislature(2003 - 2004)
05/21/2003 10:35 AM House CRA
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* first hearing in first committee of referral
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ALASKA STATE LEGISLATURE
HOUSE COMMUNITY AND REGIONAL AFFAIRS
STANDING COMMITTEE
May 21, 2003
10:35 a.m.
MEMBERS PRESENT
Representative Carl Morgan, Chair
Representative Kelly Wolf, Vice Chair
Representative Pete Kott
Representative Tom Anderson
Representative Ralph Samuels
Representative Sharon Cissna
Representative Albert Kookesh
MEMBERS ABSENT
All members present
OTHER LEGISLATORS PRESENT
Representative Jim Holm
COMMITTEE CALENDAR
CS FOR SENATE BILL NO. 183(STA)
"An Act authorizing certain boroughs to use revenue collected on
an areawide or nonareawide basis for economic development."
- MOVED HCS CSSB 183(CRA) OUT OF COMMITTEE
PREVIOUS ACTION
BILL: SB 183
SHORT TITLE:MUNICIPAL ECON. DEVELOPMENT/TAXATION
SPONSOR(S): SENATOR(S) SEEKINS
Jrn-Date Jrn-Page Action
04/11/03 0810 (S) READ THE FIRST TIME -
REFERRALS
04/11/03 0810 (S) CRA, STA
04/30/03 (S) CRA AT 1:30 PM FAHRENKAMP 203
04/30/03 (S) Moved CSSB 183(CRA) Out of
Committee
04/30/03 (S) MINUTE(CRA)
05/01/03 1074 (S) CRA RPT CS 1DNP 3NR NEW TITLE
05/01/03 1075 (S) NR: WAGONER, STEVENS G,
LINCOLN;
05/01/03 1075 (S) DNP: ELTON
05/01/03 1075 (S) FN1: ZERO(CED)
05/08/03 (S) STA AT 3:30 PM BELTZ 211
05/08/03 (S) Moved CSSB 183(STA) Out of
Committee
MINUTE(STA)
05/09/03 1268 (S) STA RPT CS 3DP 2NR NEW TITLE
05/09/03 1268 (S) DP: STEVENS G, COWDERY,
DYSON;
05/09/03 1268 (S) NR: HOFFMAN, GUESS
05/09/03 1268 (S) FN1: ZERO(CED)
05/13/03 1361 (S) RULES TO CALENDAR 5/13/2003
05/13/03 1361 (S) READ THE SECOND TIME
05/13/03 1361 (S) STA CS ADOPTED UNAN CONSENT
05/13/03 1361 (S) ADVANCED TO THIRD READING
5/14 CALENDAR
05/14/03 1402 (S) READ THE THIRD TIME CSSB
183(STA)
05/14/03 1403 (S) PASSED Y20 N-
05/14/03 1403 (S) ELLIS NOTICE OF
RECONSIDERATION
05/14/03 1407 (S) COSPONSOR(S): WILKEN
05/15/03 1454 (S) RECONSIDERATION NOT TAKEN UP
05/15/03 1456 (S) TRANSMITTED TO (H)
05/15/03 1456 (S) VERSION: CSSB 183(STA)
05/15/03 (H) CRA AT 8:00 AM CAPITOL 124
05/15/03 (H) Scheduled But Not Heard
05/16/03 1726 (H) READ THE FIRST TIME -
REFERRALS
05/16/03 1726 (H) CRA
05/21/03 (H) CRA AT 10:30 AM CAPITOL 124
WITNESS REGISTER
SUE STANCLIFF, Staff
to Representative Carl Morgan
House Community and Regional Affairs Standing Committee
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HCS CSSB 183, Version U.
SENATOR RALPH SEEKINS
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Spoke as the sponsor SB 183.
LORI BACKES, Staff
to Representative Jim Whitaker
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: During discussion of SB 183, testified on
behalf of Representative Whitaker, the sponsor of HB 38.
DAN BOCKHORST, Staff
to the Local Boundary Commission
Division of Community and Business Development
Department of Community & Economic Development
Anchorage, Alaska
POSITION STATEMENT: During discussion of SB 183, related that
the LBC's concern.
DAVID LEONE, Special Assistant
to Mayor Boyles
Fairbanks North Star Borough
Fairbanks, Alaska
POSITION STATEMENT: Expressed concern with regard to the
ability to pass this HCS CSSB 183 through in the waning hours of
the session.
ACTION NARRATIVE
TAPE 03-20, SIDE A
Number 0001
CHAIR CARL MORGAN called the House Community and Regional
Affairs Standing Committee meeting to order at 10:35 a.m.
Representatives Morgan, Wolf, Anderson, Samuels, Cissna, and
Kookesh were present at the call to order. Representative Kott
arrived as the meeting was in progress. Also in attendance was
Representative Holm.
SB 183-MUNICIPAL ECON. DEVELOPMENT/TAXATION
CHAIR MORGAN announced that the only order of business would be
CS FOR SENATE BILL NO. 183(STA), "An Act authorizing certain
boroughs to use revenue collected on an areawide or nonareawide
basis for economic development."
Number 0102
REPRESENTATIVE ANDERSON moved to adopt HCS CSSB 183, Version 23-
LS0970\U, Cook, 5/17/03, as the working document. There being
no objection, Version U was before the committee.
Number 0149
SUE STANCLIFF, Staff to Representative Carl Morgan, House
Community and Regional Affairs Standing Committee, Alaska State
Legislature, explained that three bills relating to municipal
structure currently in the House Community and Regional Affairs
Standing Committee are encompassed in Version U. Ms. Stancliff
turned to the sectional analysis of HCS CSSB 183, Version U,
from which she paraphrased. The sectional analysis reads as
follows [original punctuation provided]:
Section 1
Encompasses language from SB 63
Relating to municipal property taxation in
annexed and detached areas.
The issue was raised as an item of concert during
the legislative hearings on the City of Homer's
Annexation, discussed in 2002 during the 22nd
Legislative Session. The annexation was effective in
March, but the question of when a tax levy would be
applied was uncertain.
This section of the bill provides that a tax may
not be assessed or levied before January 1 of the year
immediately following the annexation or incorporation.
An exception would be if the annexation were effective
on January 1st of that year.
For detached areas, this section clarifies that
taxes levied on property prior to the date of the
detachment remain valid.
Sections 2 through Sections 4.
Relates to HB 38 relating to mergers and
consolidations of municipalities.
Title 29 allows municipalities to merge by
consolidation or unification. Through the years many
communities have attempted to merge through this
process, some successfully, some not so successfully.
It is through those efforts that deficiencies in fair
voting practices surrounding municipal mergers have
come to light.
HB 38 seeks to establish a more fair and timely
process in the petition and election of municipal
mergers by limiting the time allowed for gathering
signatures as well as setting clear requirements for
how the outcome of the election is to be determined.
Section 5
Encompassed all of the language from CSSB
183(STA) authorizing certain boroughs to use revenue
collected on an areawide or nonareawide basis for
economic development.
Current state law places a limitation on second-
class boroughs with respect to expending funds
designated for economic development.
Second-class boroughs may only use these funds on
a nonareawide basis. This means that the Fairbanks
North Star Borough can only deploy these funds on
projects located outside the city limits of Fairbanks
and North Pole.
Section 6
Relates to HB 38
APPLICABILITY. Stating that sections 2-3 do not
apply to a merger or consolidation petition filed with
DCED before the effective date. And section 4 does
not apply to an election held as a result of a
petition filed with DCED before the effective date of
this act.
MS. STANCLIFF pointed out that a title change is required for
this HCS and thus she has a resolution that will accompany
Version U should it move from committee today.
Number 0457
REPRESENTATIVE CISSNA highlighted that the testimony [included
in the committee packet] seems to only be from Fairbanks.
Therefore, she asked if this would be [applicable] to another
community.
MR. STANCLIFF replied yes. She informed the committee that SB
63 was introduced at the request of the City of Homer. She
noted that the Local Boundary Commission (LBC) had requested
inserting language into SB 63; the language would give explicit
powers to the LBC which are currently implied powers. The
committee chair felt that the language was very broad and wasn't
necessary to make the changes [requested by the LBC].
Therefore, those changes were struck, which returned the
legislation to its original version.
Number 0592
SENATOR RALPH SEEKINS, Alaska State Legislature, spoke as the
sponsor SB 183. He related his preference for SB 183 to remain
in its original form and he explained as follows. He informed
the committee that the Fairbanks Economic Development
Corporation is under the corporate umbrella of the Chamber of
Commerce, although it's specifically tasked with working on
economic development projects for the greater Fairbanks area.
However, the Fairbanks North Star Borough includes two city
governments within the borough. The borough can't use its funds
on an areawide basis when those funds come from a nonareawide
source. He told the committee that the borough has granted the
Fairbanks Economic Development Corporation $250,000 in funds
from bed tax money collected in the borough on a nonareawide
basis. The corporation can only receive $150,000 of that
$250,000 because it can justify that the $150,000 would be used
on a nonareawide basis. The borough can't give the corporation
the remaining $100,000 until this law goes into effect.
Therefore, [SB 183] was narrowly crafted so that it would only
apply to second class boroughs and would only apply if there was
agreement between the city governments and the borough. Senator
Seekins expressed concern with this HCS, which is now the
compilation of three bills, that has to get through the House
and obtain concurrence in the Senate. He noted that there is
reluctance, on the part of some folks, to [concur]. However, he
said he would "lean on the wisdom" of seasoned legislators. He
asked how [this legislation could be crafted] so that it would
help this city and borough without jeopardizing them such that
the issue has to be revisited next session. Senator Seekins
said, "I'm sitting here asking because I know its vital to my
community and it doesn't involve any state funds and it doesn't
threaten any other community ...; it's a good thing."
Number 0960
SENATOR SEEKINS, in response to Representative Anderson, said
that the intent of [SB 183] is in Version U. However, there are
other matters included that he has never discussed with his
borough, such as changing the rules on votes dealing with
unification. He reiterated his concern that he wouldn't be able
to obtain concurrence on Version U.
CHAIR MORGAN asked if the Fairbanks Economic Development
Corporation is a member of the Alaska Regional Development
Organization (ARDOR).
SENATOR SEEKINS replied no, but highlighted that the
corporation, a privately funded group, works with the ARDOR. He
informed the committee that he, along with Dr. Bill Wood, former
president of the university, merged the growing Fairbanks
Economic Development Corporation into the chamber as a separate
arm to work specifically on economic development projects. Much
of what the corporation does doesn't rise to the public level
until some of the negotiation has been done. As a private
organization, the corporation has the ability to talk behind
closed doors and solicit without the same amount of public
scrutiny as an ARDOR.
Number 1258
REPRESENTATIVE WOLF asked if Senator Seekins believes that
Version U would hamper the ability to expand partnerships.
SENATOR SEEKINS replied no.
CHAIR MORGAN pointed out that all the legislation in Version U
has been through the Senate process. Chair Morgan stressed that
he has to be careful because if he were to favor any
"boroughization" in his district, it would be political suicide.
SENATOR SEEKINS said that although he is sensitive to Chair
Morgan's concern, he wanted to utilize borough funds within the
borough in order to accomplish economic development. Senator
Seekins said he would leave it to the committee's judgment.
Number 1604
LORI BACKES, Staff to Representative Jim Whitaker, Alaska State
Legislature, testified on behalf of Representative Whitaker, the
sponsor of HB 38. She noted that last year she worked on
legislation, HB 296, similar to HB 38. House Bill 296, passed
unanimously in the House and in the Senate it passed 17-3. Last
year, HB 296 went through a strenuous hearing process. Although
HB 296 was opposed by the LBC, many of the LBC's concerns were
addressed or negated through the committee process as something
that didn't stand up against the greater policy of self
determination of communities.
REPRESENTATIVE KOTT inquired as to the current status of [HB
38].
MS. BACKES answered that HB 38 was referred to this committee
and there hadn't been pressure from the sponsor, Representative
Whitaker, to receive a hearing because he and his staff were
wrapped up in conducting the House Special Committee on Ways and
Means. She returned to last year's legislation, HB 296, and
noted that it didn't become law because the governor vetoed it.
Number 1783
DAN BOCKHORST, Staff to the Local Boundary Commission, noted
that he hasn't seen Version U. Although the LBC has endorsed
[CSSB 63(STA)] that was passed by the Senate, he said he
understood that [CSSB 63(STA)] would be modified in a fashion
which the LBC had expressed concern. He turned to HB 38 and
said that although the LBC hasn't reviewed it, the LBC, certain
local governments, and the governor - through his veto - did
oppose HB 296, the virtually identical measure last year.
Number 1861
DAVID LEONE, Special Assistant to Mayor Boyles, Fairbanks North
Star Borough, related that he hasn't heard any concerns in
support or opposition to SB 63 or HB 38. However, he echoed
concern with regard to the ability to pass HCS CSSB 183 in the
waning hours of the session. Mr. Leone said the borough's
efforts to support the Fairbanks Economic Development
Corporation is dependent upon the passage of the original SB
183. If Version U doesn't pass, Fairbanks will have to wait
another year before being able to utilize and augment the effort
to expand the economic development effort and improve the
[area's] overall economic picture.
CHAIR MORGAN, upon determining no one else wished to testify,
closed public testimony.
Number 2000
REPRESENTATIVE ANDERSON moved to report HCS CSSB 183, Version
23-LS0970\U, Cook, 5/17/03, out of committee with individual
recommendations and the accompanying zero fiscal note.
REPRESENTATIVE CISSNA objected.
A roll call vote was taken. Representatives Wolf, Kott,
Anderson, Samuels, Kookesh, and Morgan voted in favor of
reporting HCS CSSB 183, Version U. Representative Cissna voted
against it. Therefore, HCS CSSB 183(CRA) was reported out of
the House Community and Regional Affairs Standing Committee by a
vote of 6-1.
ADJOURNMENT
There being no further business before the committee, the House
Community and Regional Affairs Standing Committee meeting was
adjourned at 11:07 a.m.
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