Legislature(2005 - 2006)BELTZ 211

05/01/2006 01:30 PM COMMUNITY & REGIONAL AFFAIRS


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 378 CHILKAT BALD EAGLE PRESERVE ADV COUNCIL TELECONFERENCED
Moved CSHB 378(RES) Out of Committee
+= HB 133 MUNICIPAL BOUNDARY CHANGES/ COMMISSION TELECONFERENCED
Moved CSSSHB 133(JUD) am Out of Committee
= HB 278 RETIREMENT SYSTEM LIABILITY/BONDS
Moved CSHB 278(RLS) Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
    SENATE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE                                                                  
                          May 1, 2006                                                                                           
                           1:33 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Bert Stedman, Chair                                                                                                     
Senator Gary Stevens, Vice Chair                                                                                                
Senator Thomas Wagoner                                                                                                          
Senator Johnny Ellis                                                                                                            
Senator Albert Kookesh                                                                                                          
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                              
CS FOR HOUSE BILL NO. 278(RLS)                                                                                                  
"An Act relating to prepayments  of accrued actuarial liabilities                                                               
of  government   retirement  systems;  relating  to   the  Alaska                                                               
Municipal Bond  Bank Authority;  permitting the  Alaska Municipal                                                               
Bond Bank  Authority or a  subsidiary of the authority  to assist                                                               
state  and municipal  governmental  employers  by issuing  bonds,                                                               
notes,  commercial  paper, or  other  obligations  to enable  the                                                               
governmental  employers  to  prepay  all  or  a  portion  of  the                                                               
governmental employers' shares of  the unfunded accrued actuarial                                                               
liabilities  of retirement  systems;  authorizing a  governmental                                                               
employer to issue  obligations to prepay all or a  portion of the                                                               
governmental employer's shares of  the unfunded accrued actuarial                                                               
liabilities of  retirement systems and  to enter into a  lease or                                                               
other  contractual  agreement  with   a  trustee  or  the  Alaska                                                               
Municipal Bond  Bank Authority or  a subsidiary of  the authority                                                               
in connection with the issuance  of obligations for that purpose,                                                               
and  relating   to  those  obligations;  and   providing  for  an                                                               
effective date."                                                                                                                
                                                                                                                                
     MOVED CSHB 278(RLS) OUT OF COMMITTEE                                                                                       
                                                                                                                                
CS FOR HOUSE BILL NO. 378(RES)                                                                                                  
"An  Act  providing for  selection  of  a  member of  the  Haines                                                               
Borough Assembly to  serve as an ex officio member  of the Alaska                                                               
Chilkat  Bald Eagle  Preserve Advisory  Council and  removing the                                                               
mayor  of the  City of  Haines  as an  ex officio  member of  the                                                               
council."                                                                                                                       
                                                                                                                                
     MOVED CSHB 378(RES) OUT OF COMMITTEE                                                                                       
                                                                                                                                
CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 133(JUD) am                                                                        
"An Act relating  to incorporation of boroughs,  to annexation by                                                               
local  action,   and  to  regulations   of  the   Local  Boundary                                                               
Commission  to provide  standards  and  procedures for  municipal                                                               
incorporation,   reclassification,   dissolution,   and   certain                                                               
municipal  boundary  changes;  and  providing  for  an  effective                                                               
date."                                                                                                                          
                                                                                                                                
     MOVED CSSSHB 133(JUD) am OUT OF COMMITTEE                                                                                  
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 278                                                                                                                  
SHORT TITLE: RETIREMENT SYSTEM LIABILITY/BONDS                                                                                  
SPONSOR(s): REPRESENTATIVE(s) HAWKER                                                                                            
                                                                                                                                
04/19/05       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/19/05       (H)       STA, FIN                                                                                               
01/12/06       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
01/12/06       (H)       Heard & Held                                                                                           
01/12/06       (H)       MINUTE(STA)                                                                                            
01/17/06       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
01/17/06       (H)       Heard & Held                                                                                           
01/17/06       (H)       MINUTE(STA)                                                                                            
01/19/06       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
01/19/06       (H)       Heard & Held                                                                                           
01/19/06       (H)       MINUTE(STA)                                                                                            
01/24/06       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
01/24/06       (H)       Heard & Held                                                                                           
01/24/06       (H)       MINUTE(STA)                                                                                            
01/26/06       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
01/26/06       (H)       Moved Out of Committee                                                                                 
01/26/06       (H)       MINUTE(STA)                                                                                            
01/27/06       (H)       STA RPT 2DP 5NR                                                                                        
01/27/06       (H)       DP: GARDNER, GRUENBERG;                                                                                
01/27/06       (H)       NR: LYNN, ELKINS, RAMRAS, GATTO, SEATON                                                                
03/08/06       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
03/08/06       (H)       Heard & Held                                                                                           
03/08/06       (H)       MINUTE(FIN)                                                                                            
03/24/06       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
03/24/06       (H)       Moved CSHB 278(FIN) Out of Committee                                                                   
03/24/06       (H)       MINUTE(FIN)                                                                                            
03/27/06       (H)       FIN RPT CS(FIN) NT 4DP 3NR                                                                             
03/27/06       (H)       DP: HAWKER, WEYHRAUCH, FOSTER, MEYER;                                                                  
03/27/06       (H)       NR: KELLY, KERTTULA, STOLTZE                                                                           
04/13/06       (H)       RLS AT 1:30 PM CAPITOL 106                                                                             
04/13/06       (H)       -- Meeting Canceled --                                                                                 
04/20/06       (H)       RLS AT 9:00 AM CAPITOL 17                                                                              
04/20/06       (H)       Moved CSHB 278(RLS) Out of Committee                                                                   
04/20/06       (H)       MINUTE(RLS)                                                                                            
04/21/06       (H)       RLS RPT CS(RLS) NT 2DP 4NR                                                                             
04/21/06       (H)       DP: MCGUIRE, ROKEBERG;                                                                                 
04/21/06       (H)       NR:    GUTTENBERG,   COGHILL,    HARRIS,                                                               
                         BERKOWITZ                                                                                              
04/21/06       (H)       TRANSMITTED TO (S)                                                                                     
04/21/06       (H)       VERSION: CSHB 278(RLS)                                                                                 
04/22/06       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/22/06       (S)       CRA, FIN                                                                                               
04/28/06       (S)       CRA AT 1:30 PM BELTZ 211                                                                               
04/28/06       (S)       Heard & Held                                                                                           
04/28/06       (S)       MINUTE(CRA)                                                                                            
                                                                                                                                
BILL: HB 378                                                                                                                  
SHORT TITLE: CHILKAT BALD EAGLE PRESERVE ADV COUNCIL                                                                            
SPONSOR(s): REPRESENTATIVE(s) THOMAS                                                                                            
                                                                                                                                
01/18/06       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/18/06       (H)       CRA, RES                                                                                               
02/09/06       (H)       CRA AT 8:00 AM CAPITOL 124                                                                             
02/09/06       (H)       Moved CSHB 378(CRA) Out of Committee                                                                   
02/09/06       (H)       MINUTE(CRA)                                                                                            
02/10/06       (H)       CRA RPT CS(CRA) NT 2DP 4NR 1AM                                                                         
02/10/06       (H)       DP: NEUMAN, THOMAS;                                                                                    
02/10/06       (H)       NR: CISSNA, KOTT, SALMON, OLSON;                                                                       
02/10/06       (H)       AM: LEDOUX                                                                                             
04/19/06       (H)       RES AT 1:00 PM CAPITOL 124                                                                             
04/19/06       (H)       Moved CSHB 378(RES) Out of Committee                                                                   
04/19/06       (H)       MINUTE(RES)                                                                                            
04/20/06       (H)       RES RPT CS(RES) NT 7DP                                                                                 
04/20/06       (H)       DP: KAPSNER, GATTO, OLSON, ELKINS,                                                                     
                         CRAWFORD, RAMRAS, SAMUELS                                                                              
04/24/06       (H)       TRANSMITTED TO (S)                                                                                     
04/24/06       (H)       VERSION: CSHB 378(RES)                                                                                 
04/25/06       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/25/06       (S)       CRA, RES                                                                                               
05/01/06       (S)       CRA AT 1:30 PM BELTZ 211                                                                               
                                                                                                                                
BILL: HB 133                                                                                                                  
SHORT TITLE: MUNICIPAL BOUNDARY CHANGES/ COMMISSION                                                                             
SPONSOR(s): REPRESENTATIVE(s) COGHILL                                                                                           
                                                                                                                                
02/09/05       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/09/05       (H)       CRA, STA                                                                                               
02/16/05       (H)       SPONSOR SUBSTITUTE INTRODUCED                                                                          
02/16/05       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/16/05       (H)       CRA, STA                                                                                               
02/24/05       (H)       CRA AT 8:00 AM CAPITOL 124                                                                             
02/24/05       (H)       Heard & Held                                                                                           
02/24/05       (H)       MINUTE(CRA)                                                                                            
03/03/05       (H)       CRA AT 8:00 AM CAPITOL 124                                                                             
03/03/05       (H)       Moved CSSSHB 133(CRA) Out of Committee                                                                 
03/03/05       (H)       MINUTE(CRA)                                                                                            
03/04/05       (H)       CRA RPT CS(CRA) 5DP 2NR                                                                                
03/04/05       (H)       DP: SALMON, NEUMAN, KOTT, THOMAS,                                                                      
                         OLSON;                                                                                                 
03/04/05       (H)       NR: LEDOUX, CISSNA                                                                                     
04/02/05       (H)       STA AT 10:00 AM CAPITOL 106                                                                            
04/02/05       (H)       Moved CSSSHB 133(STA) Out of Committee                                                                 
04/02/05       (H)       MINUTE(STA)                                                                                            
04/04/05       (H)       STA RPT CS(STA) NT 3DP 2NR                                                                             
04/04/05       (H)       DP: LYNN, ELKINS, SEATON;                                                                              
04/04/05       (H)       NR: GARDNER, GRUENBERG                                                                                 
04/04/05       (H)       JUD REFERRAL ADDED AFTER STA                                                                           
04/13/05       (H)       JUD AT 1:00 PM CAPITOL 120                                                                             
04/13/05       (H)       <Bill Hearing Postponed to 4/18>                                                                       
04/18/05       (H)       JUD AT 1:00 PM CAPITOL 120                                                                             
04/18/05       (H)       Moved CSSSHB 133(JUD) Out of Committee                                                                 
04/18/05       (H)       MINUTE(JUD)                                                                                            
04/19/05       (H)       JUD RPT CS(JUD) NT 2DP 3NR                                                                             
04/19/05       (H)       DP: COGHILL, MCGUIRE;                                                                                  
04/19/05       (H)       NR: GRUENBERG, DAHLSTROM, GARA                                                                         
04/25/05       (H)       TRANSMITTED TO (S)                                                                                     
04/25/05       (H)       VERSION: CSSSHB 133(JUD) AM                                                                            
04/26/05       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/26/05       (S)       CRA, STA                                                                                               
05/02/05       (S)       CRA AT 1:30 PM BELTZ 211                                                                               
05/02/05       (S)       Heard & Held                                                                                           
05/02/05       (S)       MINUTE(CRA)                                                                                            
05/06/05       (S)       CRA AT 1:30 PM BELTZ 211                                                                               
05/06/05       (S)       Heard & Held                                                                                           
05/06/05       (S)       MINUTE(CRA)                                                                                            
05/01/06       (S)       CRA AT 1:30 PM BELTZ 211                                                                               
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
Representative Bill Thomas                                                                                                      
Alaska State Capitol                                                                                                            
Juneau, AK 99801-1182                                                                                                           
POSITION STATEMENT:  Sponsor of HB 278,                                                                                       
                                                                                                                                
Jerry Lewanski, Director                                                                                                        
Division of Parks and Outdoor Recreation                                                                                        
Department of Natural Resources                                                                                                 
400 Willoughby Ave.                                                                                                             
Juneau, AK  99801-1724                                                                                                          
POSITION STATEMENT:  Supported HB 278                                                                                         
                                                                                                                                
Representative John Coghill                                                                                                     
Alaska State Capitol                                                                                                            
Juneau, AK 99801-1182                                                                                                           
POSITION STATEMENT:  Sponsor of HB 133                                                                                        
                                                                                                                                
DARROLL HARGRAVES, Chair,                                                                                                       
Local Boundary Commission (LBC)                                                                                                 
Department of Commerce, Community & Economic Development                                                                        
PO Box 110800                                                                                                                   
Juneau, AK 99811-0800                                                                                                           
POSITION STATEMENT:  Expressed concern related to HB 133                                                                      
                                                                                                                                
Dan Bockhorst, Staff                                                                                                            
Division of Community Advocacy                                                                                                  
Department of Commerce, Community & Economic Development                                                                        
PO Box 110800                                                                                                                   
Juneau, AK 99811-0800                                                                                                           
POSITION STATEMENT:  Commented on HB 133                                                                                      
                                                                                                                                
Doris Kabanna                                                                                                                   
Homer, AK                                                                                                                       
POSITION STATEMENT:  Supported HB 133                                                                                         
                                                                                                                                
Mark Hickey. Lobbyist                                                                                                           
Lake and Peninsula Borough                                                                                                      
P.O. Box 495                                                                                                                    
King Salmon, AK 99613                                                                                                           
POSITION STATEMENT:  Supported HB 133                                                                                         
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
CHAIR  BERT  STEDMAN called  the  Senate  Community and  Regional                                                             
Affairs  Standing  Committee  meeting  to order  at  1:33:34  PM.                                                             
Present were Senators Gary Stevens,  Thomas Wagoner, Johnny Ellis                                                               
and Chair Bert Stedman.                                                                                                         
                                                                                                                                
        CSHB 278(RLS)-RETIREMENT SYSTEM LIABILITY/BONDS                                                                     
                                                                                                                              
CHAIR BERT  STEDMAN announced  HB 278  to be  the first  order of                                                               
business. He  advised that the  committee heard  public testimony                                                               
during the previous hearing and he was ready for a motion.                                                                      
                                                                                                                                
1:34:16 PM                                                                                                                    
                                                                                                                                
SENATOR  GARY  STEVENS  motioned  to  report  CSHB  278(RLS)  and                                                               
attached   fiscal   note(s)   from  committee   with   individual                                                               
recommendations. There being no objection, it was so ordered.                                                                   
                                                                                                                                
     CSHB 378(RES)-CHILKAT BALD EAGLE PRESERVE ADV COUNCIL                                                                  
                                                                                                                                
CHAIR BERT STEDMAN announced HB 378 to be up for consideration.                                                                 
                                                                                                                                
1:35:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE BILL THOMAS, Sponsor of  HB 278, explained that in                                                               
1982 when the Bald Eagle  Preserve was created a 12-seat advisory                                                               
council was established.  One of the seats was  designated to the                                                               
mayor of the  City of Haines. Since that time  the City of Haines                                                               
and  the Borough  of Haines  have  consolidated and  there is  no                                                               
longer  a city  mayor,  thus the  seat is  vacant.  HB 378  would                                                               
designate  that  position  to  a member  of  the  Haines  Borough                                                               
Assembly who is  selected by the assembly. A  stipulation is that                                                               
selection preference  is given to a  member who does not  have an                                                               
existing interest in the Bald Eagle Preserve.                                                                                   
                                                                                                                                
1:36:26 PM Senator Ellis arrived.                                                                                             
                                                                                                                                
CHAIR BERT STEDMAN asked if  the community of Haines supports the                                                               
bill.                                                                                                                           
                                                                                                                                
REPRESENTATIVE THOMAS replied yes; there is wide support.                                                                       
                                                                                                                                
SENATOR GARY  STEVENS questioned whether it  is satisfactory that                                                               
the position would be ex officio.                                                                                               
                                                                                                                                
REPRESENTATIVE THOMAS replied it's been that way.                                                                               
                                                                                                                                
JERRY LEWANSKI,  Director of  the Division  of Parks  and Outdoor                                                               
Recreation Department  of Natural  Resources, stated  support for                                                               
the HB 378  and referred to it as a  housekeeping measure to make                                                               
the council whole.                                                                                                              
                                                                                                                                
SENATOR  GARY  STEVENS  motioned  to  report  CSHB  378(RES)  and                                                               
attached   fiscal   note(s)   from  committee   with   individual                                                               
recommendations. There being no objection, it was so ordered.                                                                   
                                                                                                                                
    CSSSHB 133(JUD)am-MUNICIPAL BOUNDARY CHANGES/ COMMISSION                                                                
                                                                                                                                
1:39:36 PM                                                                                                                    
                                                                                                                                
CHAIR BERT STEDMAN announced HB 133 to be up for consideration.                                                                 
                                                                                                                                
REPRESENTATIVE JOHN COGHILL, Sponsor,  introduced HB 133 with the                                                               
statement  that  the  Local  Boundary   Commission  (LBC)  has  a                                                               
constitutional and statutory charge  to organize areas and change                                                               
boundaries in Alaska.  He opined that government  from the bottom                                                               
up is best whenever possible  and language supporting that notion                                                               
is established in the Alaska  State Constitution. To that end, HB                                                               
133 starts with getting people involved in local governance.                                                                    
                                                                                                                                
Section 1  establishes that  the LBC  must provide  public notice                                                               
for each proposed  amendment and or condition  and an opportunity                                                               
for public  comment before it  can amend  a petition or  impose a                                                               
condition  on an  incorporation. In  Alaska there's  a disconnect                                                               
stemming from  the forced  boroughization of  some areas  and the                                                               
idea of expanding boundaries without public comment.                                                                            
                                                                                                                                
Section 2  adds a  new section  requiring that  the LBC  hold two                                                               
public hearings in  the area that is  proposed for incorporation.                                                               
He noted that the new fiscal note reflects those costs.                                                                         
                                                                                                                                
Section  3 addresses  the fairness  issue  and acknowledges  that                                                               
some areas  don't want to  be annexed. The LBC  regulatory scheme                                                               
says that an  area may be annexed with an  aggregate vote and the                                                               
aggregate  vote says  that a  large  area can  always overtake  a                                                               
smaller area  by aggregating the  vote. It's only fair,  he said,                                                               
that the  people in the annexed  area have a chance  to vote. For                                                               
that  reason   Section  3(c)(1)  establishes  that   "a  proposed                                                               
annexation must  be approved by  a majority  of the votes  on the                                                               
question cast  by voters residing in  the annexing municipality."                                                               
Representative Coghill  reiterated that  government on  the local                                                               
level should start at the local level and work up.                                                                              
                                                                                                                                
To ensure that statutes keep the  process fair in a public policy                                                               
arena Section  4 establishes that  the LBC  regulations providing                                                               
standards and procedures are subject  to Title 29. Certainly, the                                                               
LBC  has a  constitutional  responsibility,  but the  Legislature                                                               
does too and it ought to be exercised here.                                                                                     
                                                                                                                                
The new fiscal note indicates  that public comment will take more                                                               
money, but  they should already  be providing that and  if that's                                                               
not  the  case,   then  that  demonstrates  the   need  for  this                                                               
legislation. He noted the fiscal  note did contain a typo because                                                               
travel and contractual services wouldn't  run $11 million. A more                                                               
likely figure would be $11,000.                                                                                                 
                                                                                                                                
1:45:37 PM                                                                                                                    
                                                                                                                                
CHAIR  STEDMAN stated  that  public comment  at  the local  level                                                               
ought to  be encouraged. HB 378  would ensure that and  force the                                                               
LBC to visit remote communities and hold public hearings.                                                                       
                                                                                                                                
REPRESENTATIVE COGHILL  agreed with the interpretation  and added                                                               
that the  Model Borough  Act doesn't allow  for much  comment and                                                               
that has been cause for complaint.                                                                                              
                                                                                                                                
SENATOR  GARY  STEVENS  asked  the  sponsor  to  comment  on  the                                                               
constitutional goal to organize the  state and whether this would                                                               
"throw sand in the wheels" of that effort.                                                                                      
                                                                                                                                
REPRESENTATIVE  COGHILL said  quite the  contrary; HB  133 places                                                               
responsibility with  local residents, which is  where it belongs.                                                               
Most  of the  boundary changes  to  date have  resulted in  court                                                               
battles and  HB 133  seeks to address  that tension  by asserting                                                               
legislative authority.  Section 2 of  the bill cites  Article 10,                                                               
Section 12 of  the Alaska Constitution that  says the Legislature                                                               
has the  right by  law to  assert the  local governance  issue in                                                               
concert with  the LBC.  That section  changes the  public hearing                                                               
requirement from one to two and that's a big change.                                                                            
                                                                                                                                
REPRESENTATIVE COGHILL responded to  a question from Senator Gary                                                               
Stevens he  said that after  an extensive reading of  the minutes                                                               
from the Constitutional Convention,  he believes he's well within                                                               
the bounds of the constitutional intent on this issue.                                                                          
                                                                                                                                
DARROLL  HARGRAVES,   Chair,  Local  Boundary   Commission  (LBC)                                                               
mentioned the written statement he  sent to the committee earlier                                                               
in the  day and related that  the LBC had objected  to an earlier                                                               
version of  HB 133. Although considerable  improvements have been                                                               
made,  the LBC  continues to  have concern.  First, he  said, the                                                               
bill  may  not  do  what  the  sponsor  and  supporters  purport.                                                               
Furthermore it might not be in the best interest of the State.                                                                  
                                                                                                                                
Referencing Section  3 relating to  the aggregate vote  issue, he                                                               
observed  that most  annexations are  initially objectionable  to                                                               
those who are being annexed.  That doesn't mean that the annexing                                                               
borough or municipality  is wrong. It may  be totally appropriate                                                               
to do  the annexation, "yet a  vote in the aggregate  would never                                                               
allow that to  happen," he said. However, once  an annexation has                                                               
occurred, it becomes clear that  it was the appropriate action to                                                               
take.                                                                                                                           
                                                                                                                                
MR. HARGRAVES  described a recent  annexation that had  been very                                                               
controversial, but  with the passage  of time it  became apparent                                                               
that the  decision to annex  was correct. "People in  the annexed                                                               
area got on the council, people  in the annexed area began to see                                                               
the  benefits   of  being  annexed   in  the  city   proper."  He                                                               
acknowledged that in that particular  instance a couple of people                                                               
have  continued to  fight the  annexation, but  it stands  on the                                                               
record  that by  and large  the  annexed area  welcomes what  has                                                               
transpired.                                                                                                                     
                                                                                                                                
Viewed  from the  State perspective  you've got  to keep  in mind                                                               
that you'll  never get a  majority vote from the  population that                                                               
is being annexed  even though it could be the  best situation. It                                                               
might  even  be  a  required  situation  because  adjacent  areas                                                               
oftentimes  draw  upon  the  services  of  the  larger  organized                                                               
borough or city. "Just be sure  that the aggregate vote is really                                                               
what we think is going to be  the best thing for everyone when it                                                               
happens," he said.                                                                                                              
                                                                                                                                
MR.  HARGRAVES said  his  final  point relates  to  cost for  the                                                               
additional  hearings and  that $10,000  or  $11,000 sounds  about                                                               
right.                                                                                                                          
                                                                                                                                
1:56:56 PM                                                                                                                    
                                                                                                                                
SENATOR  GARY  STEVENS  cited  current  law  that  says  that  an                                                               
annexation or detachment  must be approved by a  majority vote of                                                               
the  voters  residing in  the  area  proposed for  annexation  or                                                               
detachment and that  the vote takes place in that  area. He asked                                                               
Mr. Hargraves  about his interpretation  of aggregate vote  as it                                                               
relates to the proposed change.                                                                                                 
                                                                                                                                
MR. HARGRAVES  replied his interpretation  of the change  is that                                                               
it would require a majority vote in the area to be annexed.                                                                     
                                                                                                                                
SENATOR  GARY STEVENS  disagreed with  the interpretation.  Under                                                               
current law,  the area to  be annexed  must have a  majority vote                                                               
and  HB 133  says the  annexing area  must also  have a  majority                                                               
vote. He asked  what's wrong with that and he'd  like examples of                                                               
why a larger area would vote against annexing an outside area.                                                                  
                                                                                                                                
MR. HARGRAVES related his understanding:                                                                                        
     The intent  is to  try and  get it set  up so  that the                                                                    
     area being annexed would have  to vote - and they would                                                                    
     have to  do it -  but a larger municipality  would have                                                                    
     to vote  also to  do it.  It would  take both  votes to                                                                    
     make  it happen.  As it  stands right  now, of  course,                                                                    
     annexation can take  place by a vote  of the aggregate.                                                                    
     The two together would prevail.                                                                                            
                                                                                                                                
REPRESENTATIVE COGHILL  said you certainly would  want the people                                                               
in an annexing municipality to  have a majority vote because that                                                               
municipality would be taking on  the responsibility, but you also                                                               
want the people in the area to be annexed to have a vote.                                                                       
                                                                                                                                
MR.  HARGRAVES  interjected  to question  whether  the  sponsor's                                                               
intent is that  the area being annexed would need  to vote in the                                                               
affirmative for the annexation to go through.                                                                                   
                                                                                                                                
REPRESENTATIVE COGHILL continued  with his explanation. Statutory                                                               
language says the area that  is proposed for annexation must vote                                                               
in the affirmative  before the annexation can go  forward. HB 133                                                               
adds  the  requirement  that  the  proposed  annexation  must  be                                                               
approved by  a majority of votes  cast by the voters  residing in                                                               
the  annexing   municipality.  Representative  Coghill   said  he                                                               
decided on this course of  action because he disagrees completely                                                               
with the aggregate  vote issue, but you do  want both responsible                                                               
parties  to agree  on  the  issue. That  would  require a  public                                                               
dialog  and campaign  asking  whether  or not  it's  in the  best                                                               
interest of the  local area. Rather than having the  LBC make the                                                               
determination,  HB 133  leaves it  up  to the  people. Using  the                                                               
aggregate vote, as set forth  in regulation doesn't get you there                                                               
fairly, he said.                                                                                                                
                                                                                                                                
SENATOR ALBERT KOOKESH  observed that if this  were adopted there                                                               
would be a two-step process. First  it would take a majority vote                                                               
of the voters  residing in the annexing municipality  and then it                                                               
would take a majority vote of  the voters residing in the area to                                                               
be annexed.  If the first  vote were  to fail then  nothing would                                                               
happen, but if  the first vote were  to pass then the  area to be                                                               
annexed  would vote.  If this  language were  to be  adopted then                                                               
there would be two ways to stop an annexation.                                                                                  
                                                                                                                                
REPRESENTATIVE COGHILL agreed.                                                                                                  
                                                                                                                                
2:02:06 PM                                                                                                                    
                                                                                                                                
DAN BOCKHORST, Staff to the  LBC from the Department of Commerce,                                                               
Community, & Economic Development,  verified that the fiscal note                                                               
should  reflect $11,000  in estimated  fiscal impact  rather than                                                               
$11 million.  He further clarified  that under the  existing laws                                                               
governing  the LBC  process, there  are three  venues for  public                                                               
input. Once  a petition is  filed with the LBC,  extensive public                                                               
notice is given and individuals have  a minimum of seven weeks to                                                               
submit  supporting  or  opposing   comments.  Staff  to  the  LBC                                                               
conducts an investigation  and prepares a report  on the proposal                                                               
including findings and recommendations.  That report is published                                                               
and  public  comment is  solicited.  Individuals  are given  four                                                               
weeks  to   submit  written  comments  regarding   the  findings,                                                               
conclusions  and  recommendations  that  the staff  made  on  the                                                               
proposal.  Third there  is the  public hearing  conducted by  the                                                               
LBC. That  public hearing is required  to be held in  or near the                                                               
area that  is proposed  for annexation.  He asserted  that during                                                               
the  course  of that  public  hearing  there  is ample  time  for                                                               
comment.                                                                                                                        
                                                                                                                                
HB 133  would further expand  the already ample  opportunity that                                                               
is  available for  public  comment.  In the  event  that the  LBC                                                               
decides  to  make  amendments or  add  conditions,  then  further                                                               
hearings would be required. If  the commission decides to present                                                               
a   legislative  review   borough  incorporation   then  multiple                                                               
hearings would be required.                                                                                                     
                                                                                                                                
He  agreed  with the  point  about  protecting and  assuring  the                                                               
interests of  the local voters  within the  municipal government.                                                               
But in that vein there is  no provision for similar treatment for                                                               
detachments. As currently  worded HB 133 would  require voters in                                                               
the existing  municipality to agree  to an annexation, but  if an                                                               
area in that same municipality  were proposed to be detached then                                                               
the voters  in the  area to  be detached would  have a  vote, but                                                               
voters in  the existing  municipality would  not be  accorded the                                                               
same treatment.                                                                                                                 
                                                                                                                                
Article 10,  Section 12 provides  that annexation  decisions made                                                               
under the  legislative review process provide  no opportunity for                                                               
voter  participation.  He  suggested  that as  more  hurtles  are                                                               
placed  relating   to  boundary   changes  and   involving  voter                                                               
participation,   more  proposals   will  be   shifted  into   the                                                               
legislative review arena where there is no voter participation.                                                                 
                                                                                                                                
SENATOR  WAGONER  stated  support  for  Representative  Coghill's                                                               
efforts and observed that this is a good fix.                                                                                   
                                                                                                                                
REPRESENTATIVE  COGHILL informed  members that  when the  LBC was                                                               
established in  the constitution, the Legislature  was only given                                                               
the ability  to reject  a proposal  so it  is important  that the                                                               
public process is conducted at the local level.                                                                                 
                                                                                                                                
2:08:58 PM                                                                                                                    
                                                                                                                                
DORIS KABANNA, Homer,  reported that working with the  LBC on the                                                               
annexation in  her area was  unsatisfactory and she  continues to                                                               
be unsatisfied. She said  she would like a fix so  that a vote of                                                               
the people would not be ignored.                                                                                                
                                                                                                                                
2:13:15 PM                                                                                                                    
                                                                                                                                
MARK HICKEY, Lake and Peninsula  Borough, spoke in strong support                                                               
of HB  133 and  noted that  Section 3  is of  particular interest                                                               
because of the two-step process.  In a local action annexation or                                                               
detachment  there would  be  an affirmative  vote  from the  area                                                               
being  annexed   and  an  affirmative  vote   from  the  annexing                                                               
municipality.                                                                                                                   
                                                                                                                                
He related  that the Lake  and Peninsula Borough is  living proof                                                               
of  the  need  for  this  new provision  and  explained  that  an                                                               
unorganized area  to the west that  is large enough to  form as a                                                               
separate  borough  has,  on at  least  two  occasions,  submitted                                                               
proposals  to   annex  into  the  Lake   and  Peninsula  Borough.                                                               
Describing this  consolidating action  as a hostile  takeover, he                                                               
noted that  Lake and Peninsula  residents would have no  vote. He                                                               
noted  that  more  often  than   not  it's  a  municipality  that                                                               
petitions to  annex, but that isn't  the case in the  instance of                                                               
the Lake and Peninsula Borough  and the adjacent unorganized area                                                               
that includes  Dillingham and the  Nushagak River  drainage. It's                                                               
not our idea, he said, and we don't support it.                                                                                 
                                                                                                                                
2:16:10 PM                                                                                                                    
                                                                                                                                
MR.  HICKEY responded  to  a question  from  Senator Stevens  and                                                               
clarified that  under Section 3(c)(1)  a local  action annexation                                                               
must be approved  by a majority of votes cast  by voters residing                                                               
in  the  annexing  municipality.  Therefore  a  majority  of  the                                                               
existing  municipality  -  the  Lake  and Pen  -  would  have  to                                                               
approve. Section  3(c)(2) is  existing law and  it says  that the                                                               
annexation would also  have to be approved by  majority vote cast                                                               
by voters residing in the area to be annexed.                                                                                   
                                                                                                                                
What happens  now, he  said, is  that Lake  and Peninsula  has no                                                               
vote under local  action. In the case of Dillingham  and Lake and                                                               
Peninsula, the  only people that  would have to approve  would be                                                               
the  people  to  the  west   that  aren't  in  the  borough.  The                                                               
Dillingham area has  a population of about 2,500  compared to the                                                               
Lake  and  Peninsula Borough  population  of  about 1,700  so  an                                                               
aggregate  vote wouldn't  help  either because  Lake  and Pen  is                                                               
outnumbered. To  me, he said, it's  almost a loophole to  be able                                                               
to  use  the  annexation  provision  to  do  what  amounts  to  a                                                               
consolidation  or hostile  takeover.  He reiterated  that HB  133                                                               
says that  Lake and Peninsula  Borough voters would also  have to                                                               
approve.                                                                                                                        
                                                                                                                                
2:18:51 PM                                                                                                                    
                                                                                                                                
SENATOR GARY  STEVENS motioned to  report CSSSHB 133(JUD)  am and                                                               
attached  and   corrected  fiscal   notes  from   committee  with                                                               
individual recommendations.  There being no objection,  it was so                                                               
ordered.                                                                                                                        
                                                                                                                                
There being  no further  business to  come before  the committee,                                                               
Chair Stedman adjourned the meeting at 2:20:56 PM.                                                                            

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