Legislature(2005 - 2006)BELTZ 211

03/16/2005 09:00 AM House RULES


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09:07:55 AM Start
09:08:06 AM HB121
09:37:49 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
HB 121 SERVICE AREAS IN SECOND CLASS BOROUGHS
Moved CSHB 121(RLS) Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
                 HOUSE RULES STANDING COMMITTEE                                                                               
                         March 16, 2005                                                                                         
                           9:07 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Norman Rokeberg, Chair                                                                                           
Representative John Harris                                                                                                      
Representative John Coghill                                                                                                     
Representative Vic Kohring                                                                                                      
Representative Ethan Berkowitz                                                                                                  
Representative Beth Kerttula                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Lesil McGuire                                                                                                    
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 121                                                                                                              
"An Act relating to consolidating or abolishing certain service                                                                 
areas in second class boroughs."                                                                                                
                                                                                                                                
     - MOVED CSHB 121(RLS) OUT OF COMMITTEE                                                                                     
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 121                                                                                                                  
SHORT TITLE: SERVICE AREAS IN SECOND CLASS BOROUGHS                                                                             
SPONSOR(S): COMMUNITY & REGIONAL AFFAIRS                                                                                        
                                                                                                                                
02/02/05       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/02/05       (H)       CRA, STA                                                                                               
02/15/05       (H)       CRA AT 8:00 AM CAPITOL 124                                                                             
02/15/05       (H)       Heard & Held                                                                                           
02/15/05       (H)       MINUTE(CRA)                                                                                            
02/24/05       (H)       CRA RPT CS(CRA) NT 1DP 5NR                                                                             
02/24/05       (H)       DP: THOMAS;                                                                                            
02/24/05       (H)       NR: CISSNA, NEUMAN, SALMON, LEDOUX,                                                                    
                         OLSON                                                                                                  
02/24/05       (H)       CRA AT 8:00 AM CAPITOL 124                                                                             
02/24/05       (H)       Moved CSHB 121(CRA) Out of Committee                                                                   
02/24/05       (H)       MINUTE(CRA)                                                                                            
03/01/05       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
03/01/05       (H)       Heard & Held                                                                                           
03/01/05       (H)       MINUTE(STA)                                                                                            
03/05/05       (H)       STA AT 9:30 AM CAPITOL 106                                                                             
03/05/05       (H)       Moved CSHB 121(CRA) Out of Committee                                                                   
03/05/05       (H)       MINUTE(STA)                                                                                            
03/07/05       (H)       STA RPT CS(CRA) NT 4DP 1NR                                                                             
03/07/05       (H)       DP: LYNN, RAMRAS, GRUENBERG, SEATON;                                                                   
03/07/05       (H)       NR: GATTO                                                                                              
03/16/05       (H)       RLS AT 9:00 AM BELTZ 211                                                                               
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
KACI SCHROEDER, Staff                                                                                                           
to Representative Bill Thomas                                                                                                   
House Community and Regional Affairs Standing Committee                                                                         
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented HB 121 on behalf of the House                                                                    
Community and Regional Affairs Standing Committee, sponsor.                                                                     
                                                                                                                                
REPRESENTATIVE BILL STOLTZE                                                                                                     
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Expressed concerns with HB 121 and                                                                         
suggested that the committee adopt Amendment 1.                                                                                 
                                                                                                                                
REPRESENTATIVE MARK NEUMAN                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in support of Amendment 1 to CSHB
121(CRA).                                                                                                                       
                                                                                                                                
SALLY SADDLER                                                                                                                   
Legislative Liaison                                                                                                             
Office of the Commissioner                                                                                                      
Department of Commerce, Community, & Economic Development                                                                       
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  During discussion of HB 121, answered                                                                      
questions.                                                                                                                      
                                                                                                                                
MARGORIE VANDOR, Assistant Attorney General                                                                                     
Labor and State Affairs Section                                                                                                 
Civil Division (Juneau)                                                                                                         
Department of Law                                                                                                               
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Discussed constitutional concerns with HB
121.                                                                                                                            
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
                                                                                                                                
CHAIR NORMAN  ROKEBERG called the House  Rules Standing Committee                                                             
meeting  to  order  at 9:07:55  AM.    Representatives  Rokeberg,                                                             
Harris, Coghill,  Kohring, Berkowitz,  and Kerttula  were present                                                               
at the call to order.                                                                                                           
                                                                                                                                
HB 121-SERVICE AREAS IN SECOND CLASS BOROUGHS                                                                                 
                                                                                                                                
9:08:06 AM                                                                                                                    
                                                                                                                                
CHAIR ROKEBERG  announced that the  only order of  business would                                                               
be  HOUSE BILL  NO. 121,  "An  Act relating  to consolidating  or                                                               
abolishing certain service areas in second class boroughs."                                                                     
                                                                                                                                
9:08:22 AM                                                                                                                    
                                                                                                                                
KACI  SCHROEDER,  Staff  to  Representative  Bill  Thomas,  House                                                               
Community and  Regional Affairs Standing Committee,  Alaska State                                                               
Legislature,  explained that  when state  revenue sharing  was in                                                               
place, residents  living in subdivisions  outside of  city limits                                                               
were  able  to establish  service  areas  and relied  on  revenue                                                               
sharing  funds  to function.    However,  now the  state  revenue                                                               
sharing program has  ended and some of these  road services areas                                                               
aren't taxing  the area adequately  enough to provide  service to                                                               
the area.   Therefore, the lack  of service is leading  to unsafe                                                               
roads  in  these  service  areas.   Ms.  Schroeder  reminded  the                                                               
committee  that  these  service  areas  are  not  separate  legal                                                               
entities  from  the  borough  and  thus  the  borough  bears  the                                                               
ultimate  financial  responsibility   for  these  service  areas.                                                               
However, a  borough can't assess  a boroughwide tax and  apply it                                                               
to specific  service areas.   She  highlighted that  although the                                                               
borough  bears the  ultimate financial  responsibility for  these                                                               
service  areas, it  lacks the  power  to dissolve  or remedy  the                                                               
problems that exist when service  areas don't adequately maintain                                                               
the  roads.   This legislation  allows second  class boroughs  to                                                               
consolidate  or  abolish  service areas  not  providing  adequate                                                               
services while protecting those  service areas that are providing                                                               
adequate services.                                                                                                              
                                                                                                                                
9:10:25 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KOHRING  moved that the committee  adopt Amendment                                                               
1 [labeled 24-LS0396\Y.5, Cook, 3/14/05], which read:                                                                           
                                                                                                                                
     Page 2, line 9:                                                                                                            
          Delete all material.                                                                                                  
          Insert "or more service areas if the                                                                              
               (1)  borough's population in 2005 was less                                                                   
     than 65,000 or more than 75,000; and                                                                                   
               (2)  assembly first determines that the                                                                      
     abolishment or"                                                                                                        
                                                                                                                                
REPRESENTATIVE HARRIS objected for discussion purposes.                                                                         
                                                                                                                                
9:11:11 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE BILL  STOLTZE, Alaska State  Legislature, informed                                                               
the  committee   that  he  represents   the  largest   home  rule                                                               
municipality that is also a  second class borough.  Service areas                                                               
have been very  effective in areas such  as the Matanuska-Susitna                                                               
Borough  because  the  area  can tailor  the  level  of  service.                                                               
Representative Stoltze  related that he  wants to excise  out the                                                               
Matanuska-Susitna  Borough,  which   doesn't  have  the  problems                                                               
[expressed in earlier  testimony] with services areas.   He urged                                                               
the committee  to hold  harmless [the  Matanuska-Susitna Borough]                                                               
from  the  good  intent  of  this  legislation.    Representative                                                               
Stoltze said  he hesitated  to tie  [the proposal  in HB  121] to                                                               
population.                                                                                                                     
                                                                                                                                
9:13:54 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE COGHILL  asked if there  is a service  district in                                                               
the Matanuska-Susitna Borough.                                                                                                  
                                                                                                                                
REPRESENTATIVE STOLTZE  stated that  there are numerous  types of                                                               
service   districts,  some   of  which   provide  road   service,                                                               
recreational  service, and  erosion services.   He  characterized                                                               
service areas as an important tool.                                                                                             
                                                                                                                                
9:15:04 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HARRIS  turned  attention   to  Amendment  1  and                                                               
inquired  as to  whether the  amendment means  to delete  all the                                                               
material on page 2, line 9.                                                                                                     
                                                                                                                                
REPRESENTATIVE STOLTZE confirmed that  the amendment only deletes                                                               
the language on line 9, page 2.                                                                                                 
                                                                                                                                
9:16:00 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE COGHILL recalled that  in the Fairbanks North Star                                                               
Borough the problem is that  after [revenue sharing funds weren't                                                               
available] the  service area  didn't tax  itself and  the service                                                               
area  [didn't  provide  services], and  others  couldn't  provide                                                               
services in  that area  either.  He  asked if  the aforementioned                                                               
could happen in Representative Stoltze's district.                                                                              
                                                                                                                                
REPRESENTATIVE STOLTZE  replied no,  and stated that  the service                                                               
areas  [in his  district]  work  very well.    He explained  that                                                               
Amendment 1 would  allow him to support HB 121,  but not harm his                                                               
own district.                                                                                                                   
                                                                                                                                
9:17:47 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KERTTULA opined  that if there are  no problems in                                                               
the   Matanuska-Susitna  Borough,   an   exemption  wouldn't   be                                                               
necessary.   However, she  suggested that  perhaps the  area will                                                               
need it in the future.                                                                                                          
                                                                                                                                
REPRESENTATIVE STOLTZE related his  belief that any assembly with                                                               
an ordinance  could say that there  is a more cost  efficient way                                                               
without the protection that current statute affords.                                                                            
                                                                                                                                
9:19:26 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE BERKOWITZ  opined that if an  assembly doesn't act                                                               
under the current proposed legislation,  then [Amendment 1] isn't                                                               
necessary.    Representative  Berkowitz highlighted  the  concern                                                               
that   this  legislation   runs  afoul   of  the   constitutional                                                               
prohibition against special legislation  and Amendment 1 seems to                                                               
place  the legislation  even further  afoul of  the constitution.                                                               
Representative  Berkowitz  emphasized  the need  to  protect  the                                                               
constitution.                                                                                                                   
                                                                                                                                
9:21:13 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STOLTZE reminded  the  committee  that, not  with                                                               
standing  constitutional  concerns,  the governor  signed  Senate                                                               
Bill 13.                                                                                                                        
                                                                                                                                
9:21:42 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MARK NEUMAN,  Alaska  State Legislature,  related                                                               
his support as  well as the support of members  of the Matanuska-                                                               
Susitna Borough Assembly for Amendment  1.  Representative Neuman                                                               
said that  he supports HB 121,  although it doesn't seem  to work                                                               
for all communities.  He related that a member of the Matanuska-                                                                
Susitna  Borough felt  that this  bill wouldn't  be good  for the                                                               
Matanuska-Susitna Borough.                                                                                                      
                                                                                                                                
9:22:54 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HARRIS  inquired as  to what  would happen  if the                                                               
Matanuska-Susitna  Borough population  increases to  over 75,000.                                                               
He asked if the amendment merely speaks to a snap shot in time.                                                                 
                                                                                                                                
REPRESENTATIVE NEUMAN deferred to Representative Stoltze.                                                                       
                                                                                                                                
CHAIR ROKEBERG noted that Representative  Stoltze, in response to                                                               
Representative Harris, nodded his head in the affirmative.                                                                      
                                                                                                                                
9:24:01 AM                                                                                                                    
                                                                                                                                
SALLY SADDLER,  Legislative Liaison, Office of  the Commissioner,                                                               
Department  of   Commerce,  Community,  &   Economic  Development                                                               
(DCCED), offered to answer any questions from the committee.                                                                    
                                                                                                                                
CHAIR  ROKEBERG   returned  to  Representative   Harris'  earlier                                                               
question  regarding the  snap shot  in time,  and asked  if DCCED                                                               
publishes  population figures  for the  various boroughs  so that                                                               
there  would be  a  baseline point  at  which this  [legislation]                                                               
would be effective.                                                                                                             
                                                                                                                                
MS. SADDLER  said that she wasn't  sure with regard to  the date,                                                               
although  she   confirmed  that   the  department   does  publish                                                               
population figures on an annual basis.                                                                                          
                                                                                                                                
9:24:40 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  BERKOWITZ asked  if any  other boroughs  would be                                                               
impacted by  the population  specifications in  Amendment 1.   He                                                               
asked if  any boroughs  would even come  close to  the population                                                               
specifications.                                                                                                                 
                                                                                                                                
MS. SADDLER replied no to both questions.                                                                                       
                                                                                                                                
9:25:08 AM                                                                                                                    
                                                                                                                                
CHAIR ROKEBERG surmised  that due to the  sentence structure, the                                                               
borough's population  in 2005  would be a  specific date  in time                                                               
and wouldn't evolve or change over  time.  He then asked if DCCED                                                               
has a position on this legislation.                                                                                             
                                                                                                                                
9:25:26 AM                                                                                                                    
                                                                                                                                
MS.  SADDLER stated  that the  department  endorses any  measures                                                               
that provide flexibility to local  government for the delivery of                                                               
services.    However,  she  informed  the  committee  that  DCCED                                                               
highlighted in  the House State  Affairs Standing  Committee that                                                               
HB 121  would provide more  flexibility to second  class boroughs                                                               
than home  rule boroughs.   The aforementioned is merely  a point                                                               
for the committee to consider, she said.                                                                                        
                                                                                                                                
9:26:20 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KERTTULA  said that  after reading  the Department                                                               
of Law's opinion  on the Senate companion bill to  HB 121, she is                                                               
concerned  about  HB  121,  particularly  with  the  adoption  of                                                               
Amendment 1, running  afoul of the home rule  powers for boroughs                                                               
as  well  as  the  restriction   on  special  legislation.    She                                                               
requested that the Department of  Law representative speak to the                                                               
aforementioned concerns.                                                                                                        
                                                                                                                                
9:26:59 AM                                                                                                                    
                                                                                                                                
MARGORIE  VANDOR, Assistant  Attorney  General,  Labor and  State                                                               
Affairs  Section, Civil  Division  (Juneau),  Department of  Law,                                                               
first addressed  the special  legislation issue.   She  said that                                                               
Amendment  1  would  make  the legislation  more  specific  to  a                                                               
particular area  by specifically  exempting another  area without                                                               
any rational reason.  The  aforementioned is special legislation.                                                               
She explained  that the test  for special legislation  is whether                                                               
there is  a rational  basis for  exemption from  the requirements                                                               
specified in  the legislation.   Furthermore,  population doesn't                                                               
seem  to  be  the  basis  upon  which  to  allow  a  more  strict                                                               
exemption, she said.                                                                                                            
                                                                                                                                
9:28:21 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE COGHILL  inquired as to what  other boroughs might                                                               
have in  the service  district makeup.   Although he  related his                                                               
understanding that  the second class  borough in Fairbanks  has a                                                               
specific  issue that  it's trying  to  address, he  asked if  the                                                               
legislation  could  be  broadly   applied  to  all  service  area                                                               
districts.  Representative  Coghill asked, "If you  had a service                                                               
area that  was abandoned  for some other  reason, is  there legal                                                               
issues that  they would also need  the flexibility to say  if you                                                               
have a service  area designed and then refuse to  manage it, that                                                               
they  could consolidate  it?"   He  further  asked whether  other                                                               
boroughs fall into the aforementioned category.                                                                                 
                                                                                                                                
MS.  VANDOR  replied,  "Yes,  they  would."    She  reminded  the                                                               
committee  that  the  power  [being  discussed]  is  given  to  a                                                               
borough, service  areas don't  have any  powers except  as "voted                                                               
in."  Service  areas aren't the legal representative  that can be                                                               
sued,  and therefore  [the responsibility]  ultimately lays  with                                                               
the borough.  Why [this  legislation] only restricts the proposed                                                               
flexibility to second class boroughs,  a general law borough, and                                                               
not home rule boroughs is  the Department of Law's other concern.                                                               
Home  rule boroughs  are  meant to  be  independent and  powerful                                                               
municipalities for  which one  looks to  the home  rule borough's                                                               
charter, rather  than Title 29, for  its organic law.   She noted                                                               
that the Department  of Law has always held the  position that to                                                               
restrict how  home rule  boroughs deal  with their  local service                                                               
areas is  a matter of  local concern.   When this  statute became                                                               
law  in  2001/2002,  the population  restriction  was  taken  out                                                               
because of the concern that it was special legislation.                                                                         
                                                                                                                                
9:31:09 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  BERKOWITZ  pointed out  that  Title  29 uses  the                                                               
language,  "the   borough  by  ordinance",  to   conduct  certain                                                               
actions.    However, Amendment  1  and  the legislation  use  the                                                               
following  language:     "if  the   assembly  determines".     He                                                               
questioned the  shift in language  and noted that he  wasn't sure                                                               
of the definition of "determines".                                                                                              
                                                                                                                                
MS. VANDOR pointed out that a  second class borough can only take                                                               
action by  ordinance, and therefore  by default any  action would                                                               
have to be by ordinance.                                                                                                        
                                                                                                                                
REPRESENTATIVE BERKOWITZ  questioned what  would happen  if there                                                               
is  no   assembly.    He   inquired  as  to  the   definition  of                                                               
"determines",  and  highlighted  that the  legislature  may  make                                                               
informal  determinations.    Representative  Berkowitz  expressed                                                               
concern with  changing the terms  that are usually used  in Title                                                               
29 to those proposed in Amendment 1.                                                                                            
                                                                                                                                
9:33:34 AM                                                                                                                    
                                                                                                                                
A roll  call vote  was taken.   Representatives  Kohring, Harris,                                                               
Coghill, and  Rokeberg voted  in favor  of adopting  Amendment 1.                                                               
Representatives   Berkowitz  and   Kerttula  voted   against  it.                                                               
Therefore, Amendment 1 was adopted by a vote of 4-2.                                                                            
                                                                                                                                
9:34:09 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   BERKOWITZ  moved   that   the  committee   adopt                                                               
Amendment 2, as follows:                                                                                                        
                                                                                                                                
     Line 6 as numbered on Amendment 1;                                                                                         
     Delete "first determines"                                                                                                  
     Insert "the borough by ordinance determines"                                                                               
                                                                                                                                
REPRESENTATIVE HARRIS objected.                                                                                                 
                                                                                                                                
REPRESENTATIVE  BERKOWITZ explained  that the  legislation should                                                               
use the same language used in Title 29.                                                                                         
                                                                                                                                
REPRESENTATIVE HARRIS withdrew his objection.                                                                                   
                                                                                                                                
There being no further objection, Amendment 2 was adopted.                                                                      
                                                                                                                                
9:35:43 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HARRIS  moved  to   report  CSHB  121  (CRA),  as                                                               
amended,  out of  committee with  individual recommendations  and                                                               
the accompanying fiscal notes.                                                                                                  
                                                                                                                                
REPRESENTATIVE  KERTTULA  objected  and  commented  that  perhaps                                                               
legislation  of general  applicability could  be written  so that                                                               
all boroughs have  the authority proposed in HB 121.   She opined                                                               
that HB  121 is special legislation,  which is made even  more so                                                               
with  the adoption  of  Amendment  1.   Therefore,  she said  she                                                               
believes it's unconstitutional.                                                                                                 
                                                                                                                                
9:36:27 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  BERKOWITZ  predicted  that [if  this  legislation                                                               
passes]  the  legislature will  end  up  appropriating a  lot  of                                                               
money, money  that could  be appropriated  to education  or other                                                               
worthy causes, to attorneys to fight this matter in court.                                                                      
                                                                                                                                
9:36:56 AM                                                                                                                    
                                                                                                                                
CHAIR  ROKEBERG indicated  the need  for the  sponsors and  those                                                               
interested to seriously review  the legislation regarding whether                                                               
the legislation requires further work before it's calendared.                                                                   
                                                                                                                                
9:37:17 AM                                                                                                                    
                                                                                                                                
A roll  call vote  was taken.   Representatives  Harris, Coghill,                                                               
Kohring, and Rokeberg voted in  favor of reporting CSHB 121(CRA),                                                               
as  amended, out  of committee.    Representatives Berkowitz  and                                                               
Kerttula voted against it.  Therefore, CSHB 121(RLS) was                                                                        
reported out of the House Rules Standing Committee by a vote of                                                                 
4-2.                                                                                                                            
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Rules Standing Committee meeting was adjourned at 9:37:49 AM.                                                                 

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