04/13/2005 08:30 AM House RULES
| Audio | Topic | 
|---|---|
| Start | |
| HB16 | |
| HB156 | |
| HB121 | |
| Adjourn | 
+ teleconferenced
= bill was previously heard/scheduled
| HB 16 | |||
| HB 156 | |||
| = | HB 121 | ||
                    ALASKA STATE LEGISLATURE                                                                                  
                 HOUSE RULES STANDING COMMITTEE                                                                               
                         April 13, 2005                                                                                         
                           8:38 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Norman Rokeberg, Chair                                                                                           
Representative John Coghill, Vice Chair                                                                                         
Representative John Harris                                                                                                      
Representative Vic Kohring                                                                                                      
Representative Beth Kerttula                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Lesil McGuire                                                                                                    
Representative Ethan Berkowitz                                                                                                  
                                                                                                                                
OTHER LEGISLATORS PRESENT                                                                                                     
                                                                                                                                
Representative Paul Seaton                                                                                                      
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 16                                                                                                               
"An  Act  relating  to funding  for  school  districts  operating                                                               
secondary  school boarding  programs  and to  funding for  school                                                               
districts from  which boarding students  come; and  providing for                                                               
an effective date."                                                                                                             
                                                                                                                                
     - MOVED CSHB 16(RLS) OUT OF COMMITTEE                                                                                      
                                                                                                                                
HOUSE BILL NO. 156                                                                                                              
"An Act relating to the membership of the Alaska Commission on                                                                  
Aging; and providing for an effective date."                                                                                    
                                                                                                                                
     - MOVED CSHB 156(RLS) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 121                                                                                                              
"An Act relating to consolidating or abolishing certain service                                                                 
areas in second class boroughs."                                                                                                
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB  16                                                                                                                  
SHORT TITLE: SCHOOL FUNDS RELATED TO BOARDING SCHOOLS                                                                           
SPONSOR(S): REPRESENTATIVE(S) COGHILL                                                                                           
                                                                                                                                
01/10/05       (H)       PREFILE RELEASED 12/30/04                                                                              
01/10/05       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/10/05       (H)       EDU, HES, FIN                                                                                          
02/24/05       (H)       EDU AT 11:00 AM CAPITOL 106                                                                            
02/24/05       (H)       -- Meeting Canceled --                                                                                 
03/01/05       (H)       EDU AT 11:00 AM CAPITOL 106                                                                            
03/01/05       (H)       Moved Out of Committee                                                                                 
03/01/05       (H)       MINUTE(EDU)                                                                                            
03/03/05       (H)       EDU RPT 3DP 2NR                                                                                        
03/03/05       (H)       DP: SALMON, WILSON, NEUMAN;                                                                            
03/03/05       (H)       NR: GATTO, THOMAS                                                                                      
03/08/05       (H)       HES AT 3:00 PM CAPITOL 106                                                                             
03/08/05       (H)       Moved Out of Committee                                                                                 
03/08/05       (H)       MINUTE(HES)                                                                                            
03/09/05       (H)       HES RPT 6DP                                                                                            
03/09/05       (H)       DP: CISSNA, GARDNER, ANDERSON, MCGUIRE,                                                                
                         SEATON, WILSON                                                                                         
03/30/05       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
03/30/05       (H)       <Bill Hearing Postponed>                                                                               
04/04/05       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
04/04/05       (H)       Heard & Held                                                                                           
04/04/05       (H)       MINUTE(FIN)                                                                                            
04/05/05       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
04/05/05       (H)       Moved Out of Committee                                                                                 
04/05/05       (H)       MINUTE(FIN)                                                                                            
04/06/05       (H)       FIN RPT 5DP 4NR 1AM                                                                                    
04/06/05       (H)       DP:   FOSTER,   CROFT,   MOSES,   MEYER,                                                               
                         CHENAULT;                                                                                              
04/06/05       (H)       NR: HOLM, STOLTZE, WEYHRAUCH, KELLY;                                                                   
04/06/05       (H)       AM: HAWKER                                                                                             
04/13/05       (H)       RLS AT 8:30 AM CAPITOL 106                                                                             
                                                                                                                                
BILL: HB 156                                                                                                                  
SHORT TITLE: COMMISSION ON AGING                                                                                                
SPONSOR(S): REPRESENTATIVE(S) HOLM                                                                                              
                                                                                                                                
02/18/05       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/18/05       (H)       HES, FIN                                                                                               
03/17/05       (H)       HES AT 3:00 PM CAPITOL 106                                                                             
03/17/05       (H)       Moved CSHB 156(HES) Out of Committee                                                                   
03/17/05       (H)       MINUTE(HES)                                                                                            
03/18/05       (H)       HES RPT CS(HES) NT 7DP                                                                                 
03/18/05       (H)       DP: CISSNA, GARDNER, ANDERSON, KOHRING,                                                                
                         MCGUIRE, SEATON, WILSON                                                                                
03/31/05       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
03/31/05       (H)       <Bill   Hearing   Postponed   to   Tues.                                                               
                         4/5/05>                                                                                                
04/05/05       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
04/05/05       (H)       Moved Out of Committee                                                                                 
04/05/05       (H)       MINUTE(FIN)                                                                                            
04/06/05       (H)       FIN RPT CS(HES) NT 8DP                                                                                 
04/06/05       (H)       DP: HAWKER, HOLM, WEYHRAUCH, CROFT,                                                                    
                         KELLY, FOSTER, MEYER, CHENAULT                                                                         
04/13/05       (H)       RLS AT 8:30 AM CAPITOL 106                                                                             
                                                                                                                                
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                                                                               
03/16/05       (H)       Moved CSHB 121(RLS) Out of Committee                                                                   
03/16/05       (H)       MINUTE(RLS)                                                                                            
03/17/05       (H)       RLS RPT CS(RLS) NT 4NR 2AM                                                                             
03/17/05       (H)       NR: HARRIS, KOHRING, COGHILL, ROKEBERG;                                                                
03/17/05       (H)       AM: KERTTULA, BERKOWITZ                                                                                
03/17/05       (H)       RETURNED TO RLS COMMITTEE                                                                              
04/04/05       (H)       RLS AT 9:30 AM FAHRENKAMP 203                                                                          
04/04/05       (H)       -- Meeting Canceled --                                                                                 
04/13/05       (H)       RLS AT 8:30 AM CAPITOL 106                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
BARBARA COTTING, Staff                                                                                                          
to Representative Jim Holm                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented HB 156.                                                                                          
                                                                                                                                
NANCY KARACAND, Planner                                                                                                         
Commission on Aging                                                                                                             
Department of Health and Social Services                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in support of HB 156.                                                                            
                                                                                                                                
KACI SCHROEDER, Staff                                                                                                           
to Representative Bill Thomas                                                                                                   
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented CSHB 121, Version L.                                                                             
                                                                                                                                
SALLY SADDLER, Legislative Liaison                                                                                              
Office of the Commission                                                                                                        
Department of Commerce, Community, & Economic Development                                                                       
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Expressed concerns with HB 121.                                                                            
                                                                                                                                
MARJORIE VANDOR, Assistant Attorney General                                                                                     
Civil Division (Juneau)                                                                                                         
Department of Law                                                                                                               
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Expressed concerns with HB 121.                                                                            
                                                                                                                                
REPRESENTATIVE PAUL SEATON                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified on HB 121.                                                                                       
                                                                                                                                
LINDA ANDERSON, Lobbyist                                                                                                        
Fairbanks North Star Borough                                                                                                    
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Discussed Conceptual Amendment 1 to CSHB
121(CRA).                                                                                                                       
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
                                                                                                                                
CHAIR NORMAN  ROKEBERG called the House  Rules Standing Committee                                                             
meeting  to  order  at   8:38:32  AM.  Representatives  Rokeberg,                                                             
Coghill, Harris, Kohring,  and Kerttula were present  at the call                                                               
to order.  Also in attendance was Representative Seaton.                                                                        
                                                                                                                                
HB  16-SCHOOL FUNDS RELATED TO BOARDING SCHOOLS                                                                               
                                                                                                                                
CHAIR ROKEBERG announced  that the first order  of business would                                                               
be HOUSE  BILL NO.  16, "An  Act relating  to funding  for school                                                               
districts  operating secondary  school boarding  programs and  to                                                               
funding for  school districts from which  boarding students come;                                                               
and providing for an effective date."                                                                                           
                                                                                                                                
8:39:16 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE COGHILL  explained that HB  16 is an  expansion of                                                               
the boarding school program such  that the state becomes partners                                                               
with the  school district and the  state would pay a  stipend for                                                               
the students.   The  legislation is designed  to only  fund those                                                               
communities with a  boarding school at this time, and  at the end                                                               
of five years the situation will be re-evaluated.                                                                               
                                                                                                                                
8:40:42 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE COGHILL  moved that the committee  adopt Amendment                                                               
1, labeled 24-LS0125\A.3, Mischel, 4/8/05, which read:                                                                          
                                                                                                                                
     Page 1, line 2:                                                                                                            
     Following "programs":                                                                                                    
          Delete "and"                                                                                                        
          Insert ","                                                                                                          
          Following "come;"                                                                                                   
          Insert "and to the effectiveness of district                                                                        
     secondary school boarding programs;"                                                                                     
                                                                                                                                
     Page 2, following line 17:                                                                                                 
     Insert a new bill section to read:                                                                                         
        "*  Sec. 4.   The  uncodified  law of  the State  of                                                                
     Alaska is amended by adding a new section to read:                                                                         
          REPORT ON SECONDARY SCHOOL BOARDING PROGRAMS.                                                                         
     Not later  than February 1, 2010, the  department shall                                                                    
     provide to  the governor a report  on the effectiveness                                                                    
     of  the  district  secondary school  boarding  programs                                                                    
     operated  by school  districts.   The department  shall                                                                    
     include   draft   legislation   to  extend   the   cost                                                                    
     reimbursement  under   AS 14.16.200  and   the  student                                                                    
     counting  method  under  AS 14.17.905(c)  for  boarding                                                                    
     school   programs   if   the  department   finds   that                                                                    
     continuation of  the programs is  in the  best interest                                                                    
     of the  state.   The department  shall make  the report                                                                    
     available to the public and to the legislature."                                                                           
                                                                                                                                
REPRESENTATIVE HARRIS objected for discussion purposes.                                                                         
                                                                                                                                
8:41:07 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE COGHILL explained that  Amendment 1 specifies that                                                               
[the department] will  provide a report on  the effectiveness [of                                                               
secondary school  boarding programs]  to the legislature  and the                                                               
governor no  later than February 1,  2010.  He related  that Eddy                                                               
Jeans,  Director, School  Finance,  Department  of Education  and                                                               
Early Development,  has said that  the department can  absorb the                                                               
cost of the report.                                                                                                             
                                                                                                                                
8:41:52 AM                                                                                                                    
                                                                                                                                
CHAIR  ROKEBERG recalled  that Mt.  Edgecumbe wasn't  one of  the                                                               
three boarding schools,  and therefore he asked  if Mt. Edgecumbe                                                               
is handled as a separate entity.                                                                                                
                                                                                                                                
REPRESENTATIVE COGHILL  clarified that Mt. Edgecumbe  is a state-                                                               
operated boarding  school for which  the state bears  the capital                                                               
costs  and  the  full  boarding  costs.    The  boarding  schools                                                               
addressed in HB  16 are filling needs in the  area.  For example,                                                               
the boarding  school in Galena  has people from all  over western                                                               
Alaska.                                                                                                                         
                                                                                                                                
8:42:37 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HARRIS asked  if these  are all  strictly private                                                               
boarding schools.                                                                                                               
                                                                                                                                
REPRESENTATIVE COGHILL  replied no, and clarified  that these are                                                               
public schools that  are run by the district.   He noted that the                                                               
Galena school district  is an actual school  district; the Nenana                                                               
school district is  a first class city school district.   He said                                                               
he  didn't know  about  [the structure]  of  the Bethel  boarding                                                               
school.     In   further  response   to  Representative   Harris,                                                               
Representative  Coghill  confirmed   that  the  Nenana  [boarding                                                               
school] uses the  Nenana public school for  classroom space, "but                                                               
the boarding  school is, in fact,  going to be separate  from the                                                               
school."  The same will be the  case in Galena and Bethel.  These                                                               
boarding schools  are taking advantage  of economies of  scale by                                                               
establishing  a boarding  area and  utilizing the  public schools                                                               
[for curriculum].                                                                                                               
                                                                                                                                
8:44:07 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  COGHILL, in  further  response to  Representative                                                               
Harris, specified  that these students are  high school students.                                                               
He was  not aware of a  situation at any of  these three boarding                                                               
schools in which more than a high school was involved.                                                                          
                                                                                                                                
REPRESENTATIVE  HARRIS  expressed  the  need  to  closely  review                                                               
regional  boarding schools,  although he  acknowledged that  it's                                                               
controversial.   He said  he viewed these  boarding schools  as a                                                               
pilot project for the beginnings  of [a regional boarding school]                                                               
system.                                                                                                                         
                                                                                                                                
REPRESENTATIVE  COGHILL stated  that the  time line  was inserted                                                               
because there is  a need to review the  progress.  Representative                                                               
Coghill related  that having seen  two of these  boarding schools                                                               
first  hand,  these students  attend  these  boarding schools  on                                                               
purpose.   In  fact,  in all  cases there  are  waiting lists  to                                                               
enter.   He noted that  the legislation  also includes a  sort of                                                               
hold harmless [provision].                                                                                                      
                                                                                                                                
8:46:25 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HARRIS  removed  his  objection,  [and  therefore                                                               
Amendment 1 was adopted].                                                                                                       
                                                                                                                                
8:46:33 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HARRIS moved  to report HB 16, as  amended, out of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal  notes.    There  being no  objection,  CSHB  16(RLS)  was                                                               
reported from the House Rules Standing Committee.                                                                               
                                                                                                                                
HB 156-COMMISSION ON AGING                                                                                                    
                                                                                                                                
CHAIR ROKEBERG  announced that the  next order of  business would                                                               
be HOUSE BILL NO. 156, "An  Act relating to the membership of the                                                               
Alaska  Commission  on  Aging; and  providing  for  an  effective                                                               
date."                                                                                                                          
                                                                                                                                
8:47:09 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HARRIS  moved  to  adopt CSHB  156,  Version  24-                                                               
LS0615\I, Mischel, 4/6/05, as the  working document.  There being                                                               
no objection, Version I was before the committee.                                                                               
                                                                                                                                
8:47:25 AM                                                                                                                    
                                                                                                                                
BARBARA COTTING,  Staff to Representative Jim  Holm, Alaska State                                                               
Legislature, reminded the committee  that the Commission on Aging                                                               
was  moved   from  the  Department   of  Administration   to  the                                                               
Department  of Health  and  Social Services  (DHSS)  in 2003  per                                                               
executive  order.     The  commissioner  of   the  Department  of                                                               
Administration, who has a seat  on the commission, indicated that                                                               
he is unable  to participate on the commission.   Therefore, this                                                               
legislation  removes  the  commissioner   of  the  Department  of                                                               
Administration's seat and  replaces it with a  public seat filled                                                               
by  a  senior  provider.   She  explained  that  originally,  the                                                               
aforementioned seat  was filled  by a  grant recipient,  but that                                                               
was perceived as  a conflict of interest  although the Commission                                                               
on Aging  no longer  administers the  grant program.   Therefore,                                                               
that  was  changed and  filled  by  a senior  services  provider,                                                               
regardless of age.   On page 2,  line 31 through page  3, line 1,                                                               
and page  3, lines  4-5, the language  giving the  commission the                                                               
duty  to evaluate  grant  applicants and  make  grant awards  was                                                               
eliminated.   The  aforementioned appeared  to be  a conflict  of                                                               
interest.   This  legislation cleans  up the  section of  statute                                                               
that  addresses the  commission  and brings  it into  conformance                                                               
with actual practice.                                                                                                           
                                                                                                                                
8:49:39 AM                                                                                                                    
                                                                                                                                
MS. COTTING,  in response  to Representative  Kerttula, confirmed                                                               
that the  language specifying that  there be  a member who  is "a                                                           
senior  services  provider,  regardless   of  age"  was  inserted                                                           
because [the  sponsor] didn't want  that seat to have  to conform                                                               
with age requirements.                                                                                                          
                                                                                                                                
CHAIR ROKEBERG  inquired as to the  location of the "60  years or                                                               
older" requirement.                                                                                                             
                                                                                                                                
MS.  COTTING   specified  that  it's  in   existing  statute,  AS                                                               
47.45.200.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  KERTTULA  pointed out  that  the  language in  AS                                                               
47.45.200(b) specifies,  in part:   "At least six of  the persons                                                               
appointed by the  governor shall be 60 years of  age or older. At                                                               
least two of these persons shall be 65 years of age or older."                                                                  
                                                                                                                                
8:51:25 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KERTTULA  surmised  that by  using  the  language                                                               
"regardless  of  age",  the  member  who  is  a  senior  services                                                           
provider could be 60 or 65 years of age.                                                                                        
                                                                                                                                
MS. COTTING agreed.                                                                                                             
                                                                                                                                
8:52:38 AM                                                                                                                    
                                                                                                                                
NANCY  KARACAND,  Planner,  Commission on  Aging,  Department  of                                                               
Health  and  Social  Services,   in  response  to  Representative                                                               
Harris, stated that she supported CSHB 156, Version I.                                                                          
                                                                                                                                
8:53:08 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HARRIS  moved to  report  CSHB  156, Version  24-                                                               
LS0615\I,  Mischel,  4/6/05,  out of  committee  with  individual                                                               
recommendations and  the accompanying fiscal notes.   There being                                                               
no objection,  CSHB 156(RLS)  was reported  from the  House Rules                                                               
Standing Committee.                                                                                                             
                                                                                                                                
HB 121-SERVICE AREAS IN SECOND CLASS BOROUGHS                                                                                 
                                                                                                                                
CHAIR ROKEBERG announced  that the final order  of business would                                                               
be  HOUSE BILL  NO. 121,  "An  Act relating  to consolidating  or                                                               
abolishing  certain  service  areas in  second  class  boroughs."                                                               
[Before the  committee is CSHB  121(RLS), which was  reported out                                                               
of committee on March 16, 2005.]                                                                                                
                                                                                                                                
The committee took an at-ease from 8:54 a.m. to 8:55 a.m.                                                                       
                                                                                                                                
8:54:58 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  COGHILL  moved  that the  committee  rescind  its                                                               
action  in   reporting  CSHB  121(RLS)  out   of  committee  with                                                               
individual  recommendations and  the  accompanying fiscal  notes.                                                               
There  being   no  objection,  CSHB   121(RLS)  was   before  the                                                               
committee.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  COGHILL  moved  that the  committee  rescind  its                                                               
action in adopting  CSHB 121(RLS) as the workdraft.   There being                                                               
no objection, CSHB 121(CRA) was before the committee.                                                                           
                                                                                                                                
8:56:33 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HARRIS moved  to adopt CSHB 121,  Version L, Cook,                                                               
4/11/05,  as the  working document.   There  being no  objection,                                                               
Version L was before the committee.                                                                                             
                                                                                                                                
8:57:06 AM                                                                                                                    
                                                                                                                                
KACI  SCHROEDER,  Staff  to Representative  Bill  Thomas,  Alaska                                                               
State Legislature, reminded the committee  that at the last House                                                               
Rules  Standing Committee  meeting on  HB 121  there was  concern                                                               
regarding the  breadth of  the powers an  assembly would  have in                                                               
terminating  or consolidating  a  service  area.   On  page 2  of                                                               
Version L, [paragraphs] (1)-(3) attempt  to reign in the assembly                                                               
and provide it  direction with regard to when a  service area may                                                               
be abolished or consolidated.                                                                                                   
                                                                                                                                
8:58:03 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KERTTULA  turned  attention  to  an  e-mail  from                                                               
Department  of   Commerce,  Community,  &   Economic  Development                                                               
(DCCED),  which expressed  continued concern  with regard  to the                                                               
application  of this  proposal to  second  class boroughs  versus                                                               
home rule  boroughs.  She asked  if the concerns remain  with the                                                               
adoption of Version L.                                                                                                          
                                                                                                                                
8:58:45 AM                                                                                                                    
                                                                                                                                
SALLY  SADDLER, Legislative  Liaison, Office  of the  Commission,                                                               
Department  of   Commerce,  Community,  &   Economic  Development                                                               
(DCCED),  related  her  understanding  that  the  concerns  would                                                               
remain because the legislation continues  to only apply to second                                                               
class boroughs.                                                                                                                 
                                                                                                                                
8:59:11 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HARRIS asked if Ms.  Saddler has seen the proposed                                                               
amendment in the committee packet.   He requested that she review                                                               
it  in order  to  determine whether  it  allays the  department's                                                               
concerns.                                                                                                                       
                                                                                                                                
MS. SADDLER said that she has not seen the amendment.                                                                           
                                                                                                                                
The committee took an at-ease from 9:00 a.m. to 9:04 a.m.                                                                       
                                                                                                                                
9:04:39 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE COGHILL related that  in the Interior second class                                                               
borough  there are  some legally  formulated  service areas  that                                                               
haven't  legally  met  for some  time  nor  assessed  themselves.                                                               
Furthermore, these  service areas  don't have members  sitting on                                                               
the commission and don't have a  live contract.  Although some in                                                               
those areas  would like  to receive the  service, the  borough is                                                               
restricted from  dissolving or  consolidating the  service areas.                                                               
Therefore,   this   legislation   allows   the   abolishment   or                                                               
consolidation  of  two  or  more  service  areas  [under  certain                                                               
circumstances,   as  specified   in   Conceptual  Amendment   1].                                                               
Representative Coghill recognized that  there are some challenges                                                               
between  the various  classes of  boroughs, but  opined that  the                                                               
state   purview  is   to   allow   the  aforementioned   ability.                                                               
Representative  Coghill specified  that  he is  merely trying  to                                                               
provide  the borough  some authority  to either  dissolve service                                                               
areas that aren't working or get them working again.                                                                            
                                                                                                                                
9:07:28 AM                                                                                                                    
                                                                                                                                
MS. SADDLER  said that the  department understands  the situation                                                               
giving rise to this legislation,  but the legislation still gives                                                               
powers to  a second  class/home rule borough  that a  first class                                                               
home  rule borough  doesn't have.    With regard  to comments  on                                                               
Conceptual Amendment  1, Ms. Saddler  deferred to  the Department                                                               
of Law representative.                                                                                                          
                                                                                                                                
9:08:03 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE COGHILL moved that  the committee adopt Conceptual                                                               
Amendment 1, as follows:                                                                                                        
                                                                                                                                
     This  subsection  does  not apply  in  a  second  class                                                                  
     borough  to  abolishment  of a  road  service  area  or                                                                  
     consolidation of two or more road service areas if                                                                       
                 (1)       [THE] taxes  have not been levied                                                                  
     in  the  service area  for  [THE]  road maintenance  or                                                                
     construction  services during  the last  12 months  and                                                                
     there  is no  balance in  any account  for the  service                                                                  
     area available to pay for these road services;                                                                         
                 (2)        the service  area board  has not                                                                  
     legally met for the last 12 months; or                                                                                 
                  (3)       there  are  no road  maintenance                                                                  
     contracts in  effect for the  service area  or existing                                                                
     road   maintenance  contracts   do  not   meet  legally                                                                
     required  minimum road  standards necessary  to protect                                                                
     the borough from civil liability.                                                                                      
                                                                                                                                
9:08:37 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KERTTULA  objected  and  asked  if  this  is  the                                                               
amendment or will there be changes to it.                                                                                       
                                                                                                                                
CHAIR  ROKEBERG  reminded the  committee  that  the amendment  is                                                               
conceptual.                                                                                                                     
                                                                                                                                
REPRESENTATIVE  COGHILL   stated  that  Conceptual   Amendment  1                                                               
addresses the three major issues he desires.                                                                                    
                                                                                                                                
REPRESENTATIVE KERTTULA  surmised then that  Conceptual Amendment                                                               
1 provides the general idea, although  it may not be the language                                                               
exactly.                                                                                                                        
                                                                                                                                
9:09:24 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  COGHILL  explained   that  the  subsection  being                                                               
inserted by Conceptual  Amendment 1 describes what  a borough can                                                               
do  and  specifies  that  it  doesn't apply  to  a  second  class                                                               
borough.   He  then reviewed  the three  provisions specified  in                                                               
[paragraphs] (1)-(3) of Conceptual Amendment 1.                                                                                 
                                                                                                                                
9:10:59 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HARRIS recalled  earlier testimony  regarding the                                                               
legal question  as to what,  if anything, a second  class borough                                                               
can be allowed to do that  a first class borough isn't allowed to                                                               
do.   Although  the intent  is honorable,  he questioned  whether                                                               
this can be done legally.                                                                                                       
                                                                                                                                
9:12:06 AM                                                                                                                    
                                                                                                                                
MARJORIE  VANDOR,  Assistant  Attorney  General,  Civil  Division                                                               
(Juneau), Department  of Law, related her  belief that Conceptual                                                               
Amendment  1   doesn't  alleviate  the   aforementioned  concern.                                                               
Second class  boroughs only have  the powers provided  in statute                                                               
while  the powers  of home  rule  boroughs are  specified in  its                                                               
charter.  [This  legislation] would allow a  second class borough                                                               
to have  the authority to  adjust its  service areas in  a manner                                                               
that  home rule  boroughs  aren't  allowed.   There  is case  law                                                               
relating  that a  charter, on  certain very  local matters,  will                                                               
supersede statute.   However, she noted that there  hasn't been a                                                               
test  case on  the matter  yet.   Ms. Vandor  clarified that  the                                                               
Department  of  Law  is  concerned  that  the  legislation  would                                                               
provide  a  specific class  of  borough  authority to  amend  its                                                               
service  areas under  certain conditions  that isn't  provided to                                                               
any  other  borough.    The   aforementioned  becomes  a  special                                                               
legislation issue  as well.   She pointed out that  service areas                                                               
have no  legal existence separate  from the borough,  rather they                                                               
function  as advisory  committees.   The aforementioned  has been                                                               
the  problem with  the statute  from the  beginning, she  opined.                                                               
She characterized the statute as "the tail wagging the dog."                                                                    
                                                                                                                                
9:14:15 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PAUL SEATON,  Alaska  State Legislature,  related                                                               
his understanding that  if this legislation was  applied to first                                                               
class home rule  cities, it would restrict them to  only use this                                                               
[statute] rather  than their charter.   The  aforementioned would                                                               
restrict the ability  to use the charter, which  seems to violate                                                               
the entire principle  of allowing local decisions.   He said that                                                               
he  didn't  see anything  that  prevents  first class  home  rule                                                               
boroughs from adopting  a provision [such as that  proposed in HB
121] in its charter.                                                                                                            
                                                                                                                                
MS.  VANDOR related  her understanding  that the  current statute                                                               
specifies  that in  order  to  abolish or  amend  these types  of                                                               
service  areas there  has  to be  a  vote of  the  people in  the                                                               
service  area.    The  aforementioned is  a  restriction  on  any                                                               
government because  if only  the voters in  the service  area are                                                               
allowed  to decide  how the  service area  will be  changed, more                                                               
power  has been  given  to a  small section  of  voters within  a                                                               
borough regarding  what a  service area should  be.   Such action                                                               
takes  control from  the  borough  government.   If  a home  rule                                                               
borough's charter  already specifies  its ability to  abolish and                                                               
amend service  areas as  it sees fit,  then the  question becomes                                                               
what authority  the current statute  has.  She said  that service                                                               
areas  are meant  such  that  a borough  has  control to  provide                                                               
services  in  an  area  that  is  special  to  that  area.    The                                                               
aforementioned  is for  the  assembly to  decide,  not those  who                                                               
reside there.   The statute in  HB 121 would not  allow a borough                                                               
government to make the decision without a vote of the people.                                                                   
                                                                                                                                
9:18:08 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON pointed out that  HB 121 doesn't change the                                                               
requirements, abilities, or authorities  for home first class; it                                                               
only  speaks  to  second  class boroughs.    If  the  legislation                                                               
provided that the only way a  first class home rule borough could                                                               
eliminate a service  area is through this process,  then it would                                                               
be a restriction on the home rule concept.                                                                                      
                                                                                                                                
9:18:57 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KERTTULA  surmised  that the  underlying  statute                                                               
sets up the problem.   Therefore, she questioned whether it would                                                               
be best to address the underlying statute.                                                                                      
                                                                                                                                
9:19:39 AM                                                                                                                    
                                                                                                                                
CHAIR ROKEBERG returned to  Representative Seaton's earlier point                                                               
that home  rule boroughs can already  do [what is proposed  in HB
121] through its charter, while second class boroughs can't.                                                                    
                                                                                                                                
9:19:54 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE COGHILL said  he would agree if  the boroughs were                                                               
establishing  the  service  areas.     However,  the  voters  are                                                               
gathering  and  forming  a  service   area  under  the  borough's                                                               
authority.   He pointed  out that the  service area  itself votes                                                               
whether  to levy  a mill  rate  upon those  in the  area and  the                                                               
service area organization does the  contracting.  He acknowledged                                                               
that the  commissioner of  the service area  is appointed  by the                                                               
borough.                                                                                                                        
                                                                                                                                
9:20:44 AM                                                                                                                    
                                                                                                                                
CHAIR  ROKEBERG   referred  to  [paragraph]  (3)   of  Conceptual                                                               
Amendment  1,  and   asked  if  that  refers  to   the  level  of                                                               
maintenance, design of the road itself, or both.                                                                                
                                                                                                                                
MS. VANDOR said that she didn't have a background in that area.                                                                 
                                                                                                                                
REPRESENTATIVE  COGHILL  specified  that  the  "legally  required                                                               
minimum  road  standards" would  be  established  by the  borough                                                               
standards via a borough ordinance.                                                                                              
                                                                                                                                
CHAIR ROKEBERG mentioned  that Alaska has a long  history of case                                                               
law with regard to road maintenance liability.                                                                                  
                                                                                                                                
9:22:00 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  said that Conceptual Amendment  1 seems to                                                               
use double negative language, and asked if it should be changed.                                                                
                                                                                                                                
REPRESENTATIVE  COGHILL  explained  that Conceptual  Amendment  1                                                               
speaks to  service areas in  which taxes hadn't been  levied, and                                                               
thus there  is no money to  provide any services.   He noted that                                                               
much of this is related to  the lack of revenue sharing in recent                                                               
years.   The  dilemma  is that  the boroughs  are  left with  the                                                               
matter of determining  how to dissolve a service  area that isn't                                                               
active.                                                                                                                         
                                                                                                                                
9:24:08 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  surmised that the purpose  of the proposed                                                               
subsection   in   Conceptual   Amendment  1   is   to   eliminate                                                               
nonperforming  service areas.   However,  the language  specifies                                                               
that this  subsection doesn't  apply if  the service  area hasn't                                                               
paid  its  taxes.    Representative  Seaton  suggested  that  the                                                               
proposed  subsection is  trying  to specify  that the  subsection                                                               
would  only apply  if [the  service area]  hasn't legally  met or                                                               
levied taxes.                                                                                                                   
                                                                                                                                
REPRESENTATIVE   COGHILL  remarked   that   the  department   and                                                               
Representative Seaton bring up good points.                                                                                     
                                                                                                                                
9:25:33 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE COGHILL requested that HB  121 be held in order to                                                               
obtain the exact language necessary.                                                                                            
                                                                                                                                
9:25:58 AM                                                                                                                    
                                                                                                                                
CHAIR ROKEBERG asked if the  sponsor would be amenable to holding                                                               
the legislation.                                                                                                                
                                                                                                                                
MS. SCHROEDER answered that it would be fine.                                                                                   
                                                                                                                                
9:26:28 AM                                                                                                                    
                                                                                                                                
LINDA   ANDERSON,  Lobbyist,   Fairbanks   North  Star   Borough,                                                               
addressed  Representative Seaton's  concern  with  regard to  the                                                               
double negative  language.  The language  in Conceptual Amendment                                                               
1, which  refers to "This subsection  does not apply in  a second                                                           
class  borough",  refers  to  the   preceding  language  [in  the                                                           
legislation].   Therefore, the election  won't apply in  a second                                                               
class borough  and the assembly  can then  have the power  if the                                                               
three criteria specified in Conceptual  Amendment 1 are met.  For                                                               
those reasons,  she said she  believes Conceptual Amendment  1 is                                                               
correctly drafted.                                                                                                              
                                                                                                                                
MS. ANDERSON  recalled concern from  the Mat-Su Borough  that the                                                               
House Community  and Regional Affairs Standing  Committee version                                                               
was  too broad  and  that  an assembly  might  take advantage  of                                                               
service areas to consolidate powers.   In working with the Mat-Su                                                               
Borough's  concerns, the  Fairbanks  North  Star Borough  brought                                                               
forth  Conceptual Amendment  1 to  place further  restrictions on                                                               
the  assembly.    She agreed  with  Representative  Coghill  with                                                               
regard to the  loss of revenue sharing that has  left boroughs in                                                               
a legal predicament  in that the borough can't  manage these road                                                               
service areas because there are  nonresponsive participants or no                                                               
participants at all.   She recalled that the  language in Version                                                               
L was proposed  by Representative Stoltze, while  the language of                                                               
Conceptual Amendment 1  was proposed by the  Fairbanks North Star                                                               
Borough to dovetail with Version  L.  Ms. Anderson explained that                                                               
the  language in  [Version L]  wasn't  broad enough  in terms  of                                                               
those areas that currently have a  contract.  Version L refers to                                                               
not having a  road service maintenance contract.   However, there                                                               
could be  a contract  to remove  the snow,  and perhaps  the snow                                                               
would be removed  once in a winter, although the  roads are still                                                               
not passable and the contract  isn't extensive enough to maintain                                                               
the roads to the borough ordinance standards.                                                                                   
                                                                                                                                
MS.  ANDERSON turned  to the  issue  of legality  and powers  and                                                               
referred the committee  to the last [paragraph]  of Tamara Cook's                                                               
April 6, 2005, memorandum, which  relates that this isn't special                                                               
legislation  if it  applies to  all second  class boroughs.   Ms.                                                               
Anderson pointed  out that  unified municipalities  haven't asked                                                               
for this provision because they don't need it.                                                                                  
                                                                                                                                
9:31:36 AM                                                                                                                    
                                                                                                                                
CHAIR ROKEBERG inquired as to  how many second class boroughs are                                                               
in Alaska.                                                                                                                      
                                                                                                                                
MS. ANDERSON estimated that there  are about nine, and noted that                                                               
the only unified boroughs are Anchorage and Juneau.                                                                             
                                                                                                                                
CHAIR ROKEBERG  surmised then that [this  legislation] would have                                                               
general applicability statewide.                                                                                                
                                                                                                                                
9:32:00 AM                                                                                                                    
                                                                                                                                
CHAIR  ROKEBERG announced  that HB  121 would  be held  over with                                                               
public testimony open and Amendment 1 pending.                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Rules Standing Committee meeting was adjourned at 9:32:14 AM.                                                                 
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