00 CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 133(JUD) 01 "An Act relating to incorporation of boroughs, to annexation by local action, and to 02 regulations of the Local Boundary Commission to provide standards and procedures for 03 municipal incorporation, reclassification, dissolution, and certain municipal boundary 04 changes; and providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 29.05.100(a) is amended to read: 07 (a) The Local Boundary Commission may not amend the petition or [AND 08 MAY] impose conditions on the incorporation. If the commission determines that the 09 incorporation [, AS AMENDED OR CONDITIONED IF APPROPRIATE,] meets 10 applicable standards under the state constitution and commission regulations, meets 11 the standards for incorporation under AS 29.05.011 or 29.05.031, and is in the best 12 interests of the state, it may accept the petition. Otherwise it shall reject the petition. 13 * Sec. 2. AS 29.05 is amended by adding a new section to read: 14 Sec. 29.05.115. Incorporation with legislative review. (a) If the Local 01 Boundary Commission submits a proposal for borough incorporation to the legislature 02 under art. X, sec. 12, Constitution of the State of Alaska, AS 29.05.060 - 29.05.110 do 03 not apply. However, before the proposal is submitted to the legislature, the Local 04 Boundary Commission shall hold at least two public hearings in the area proposed for 05 incorporation. 06 (b) This section may not be construed as granting authority to the Local 07 Boundary Commission to propose a borough incorporation under art. X, sec. 12, 08 Constitution of the State of Alaska. 09 * Sec. 3. AS 29.06.040(c) is amended to read: 10 (c) In addition to the regulations governing annexation by local action adopted 11 under AS 44.33.812, the Local Boundary Commission shall establish procedures for 12 annexation and detachment of territory by municipalities by local action. The 13 procedures established under this subsection must include a provision that 14 (1) a proposed annexation must be approved by a majority of votes 15 on the question cast by voters residing in the annexing municipality; 16 (2) a proposed annexation or [AND] detachment must be approved by 17 a majority of votes on the question cast by voters residing in the area proposed to be 18 annexed or detached; 19 (3) [(2)] municipally owned property adjoining the municipality may 20 be annexed by ordinance without voter approval; and 21 (4) [(3)] an area adjoining the municipality may be annexed by 22 ordinance without an election if all property owners and voters in the area petition the 23 governing body. 24 * Sec. 4. AS 44.33.812(a) is amended to read: 25 (a) The Local Boundary Commission shall 26 (1) make studies of local government boundary problems; 27 (2) adopt regulations providing standards and procedures for municipal 28 incorporation, annexation, detachment, merger, consolidation, reclassification, and 29 dissolution; the regulations providing standards and procedures are subject to 30 AS 29.04 - AS 29.10; 31 (3) consider a local government boundary change requested of it by the 01 legislature, the commissioner of commerce, community, and economic development, 02 or a political subdivision of the state; and 03 (4) develop standards and procedures for the extension of services and 04 ordinances of incorporated cities into contiguous areas for limited purposes upon 05 majority approval of the voters of the contiguous area to be annexed and prepare 06 transition schedules and prorated tax mill levies as well as standards for participation 07 by voters of these contiguous areas in the affairs of the incorporated cities furnishing 08 services. 09 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 10 read: 11 APPLICABILITY. A municipal incorporation, annexation, detachment, merger, 12 consolidation, reclassification, or dissolution proposal that has not taken effect on or before 13 the effective date of this Act and that has been initiated or considered under regulations that 14 do not meet the requirements of AS 44.33.812(a)(2), as amended in sec. 4 of this Act, or 15 under procedures that do not meet the requirements of AS 29.05.115, added by sec. 2 of this 16 Act, is void. The proposal may be initiated again under regulations that do meet the 17 requirements of AS 44.33.812(a)(2) or under procedures that do meet the requirements of 18 AS 29.05.115. 19 * Sec. 6. This Act takes effect immediately under AS 01.10.070(c).