CSSB 280(FIN) AM: "An Act relating to municipalities; the incorporation of certain boroughs in the unorganized borough; the formation of separate unorganized boroughs; and to taxation in the unorganized boroughs."
00CS FOR SENATE BILL NO. 280(FIN) am 01 "An Act relating to municipalities; the incorporation of certain boroughs in the 02 unorganized borough; the formation of separate unorganized boroughs; and to 03 taxation in the unorganized boroughs." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. LEGISLATIVE FINDING AND PURPOSE. (a) The legislature finds that 06 the rights, opportunities, and obligations of borough residents are not equal to those of 07 residents in the unorganized borough, particularly in respect to education, taxation, and land 08 use regulation, and that this is not in keeping with art. I, sec. 1, Constitution of the State of 09 Alaska, that states in part, ". . . . . that all persons are equal and entitled to equal rights, 10 opportunities, and protection under the law; and that all persons have corresponding 11 obligations to the people and to the State." 12 (b) It is the purpose of secs. 3 - 5 of this Act to abide by the intent of the framers of 13 the state constitution and the voters who adopted it and to implement a more equitable 14 distribution of rights, opportunities, and obligations among all residents of the state by
01 providing a mechanism under which most of the unorganized borough may be included within 02 the boundaries of a borough, with the expectation that the few areas not organized under secs. 03 3 - 5 of this Act will be annexed to existing municipalities. 04 * Sec. 2. AS 29.05.031(a) is amended to read: 05 (a) An area that meets the following standards may incorporate as a home rule, 06 first class, [OR] second class, or third class borough, or as a unified municipality: 07 (1) the population of the area is interrelated and integrated as to its 08 social, cultural, and economic activities, and is large and stable enough to support 09 borough government; 10 (2) the boundaries of the proposed borough or unified municipality 11 conform generally to natural geography and include all areas necessary for full 12 development of municipal services; 13 (3) the economy of the area includes the human and financial resources 14 capable of providing municipal services; evaluation of an area's economy includes land 15 use, property values, total economic base, total personal income, resource and 16 commercial development, anticipated functions, expenses, and income of the proposed 17 borough or unified municipality; 18 (4) land, water, and air transportation facilities allow the 19 communication and exchange necessary for the development of integrated borough 20 government. 21 * Sec. 3. BOROUGH INCORPORATION PROPOSAL. (a) The Department of 22 Community and Regional Affairs shall prepare a third class borough incorporation proposal 23 for each of the model boroughs identified for formation in the report issued in 1995 by the 24 Local Boundary Commission entitled "Model Borough Boundaries." During the process of 25 preparing an incorporation proposal, the department shall hold at least one public hearing in 26 each city or community with a population of at least 500 in the region covered by the proposal 27 and consider recommendations regarding the proposal. The proposal must include the 28 following information: 29 (1) name; 30 (2) boundaries; 31 (3) maps, documents, and other information considered by the department to
01 be necessary; 02 (4) composition and apportionment of the assembly; and 03 (5) a proposed operating budget for the borough projecting sources of income 04 and items of expenditure through the first full fiscal year of operation. 05 (b) By January 1, 1997, the state assessor shall estimate the full and true value of 06 taxable property in each of the model boroughs identified for formation in the report issued 07 in 1995 by the Local Boundary Commission. The Department of Community and Regional 08 Affairs shall submit each borough incorporation proposal to the Local Boundary Commission 09 by 10 (1) July 1, 1997, for model boroughs with an estimated full and true value of 11 taxable property of at least $550,000,000; 12 (2) July 1, 1998, for model boroughs with an estimated full and true value of 13 taxable property of at least $350,000,000, but less than $550,000,000; 14 (3) July 1, 1999, for model boroughs with an estimated full and true value of 15 taxable property of at least $75,000,000, but less than $350,000,000; 16 (4) July 1, 2000, for model boroughs with an estimated full and true value of 17 taxable property of less than $75,000,000. 18 (c) Within six months after receiving a borough incorporation proposal submitted 19 under (b) of this section, the Local Boundary Commission may request the department to 20 make changes to the proposal. When the commission determines that the proposal meets the 21 standards for incorporation of a third class borough, the commission shall accept the proposal 22 and notify the director of elections of its acceptance. 23 * Sec. 4. INCORPORATION ELECTION. Within 30 days after receiving notice from the 24 Local Boundary Commission of its acceptance of an incorporation proposal, the director of 25 elections shall order an election in the region of the proposed borough to determine whether 26 the voters desire incorporation and, if so, to elect the initial borough officials. The election 27 shall be held under AS 29.05.110 and 29.05.120 not less than 30 nor more than 90 days after 28 the date of the election order. The election order must specify the dates during which 29 nomination petitions of election of initial officials may be filed. 30 * Sec. 5. INCORPORATION OF NEW BOROUGHS. If a majority of the voters voting 31 on the question approve incorporation, a region is incorporated as a third class borough on the
01 first Monday following certification of the election held under sec. 4 of this Act. 02 AS 29.05.130 - 29.05.150 and 29.05.190 - 29.05.210 apply to boroughs incorporated under 03 this section. 04 * Sec. 6. FORMATION OF SEPARATE UNORGANIZED BOROUGHS. If a majority 05 of the voters voting on the question disapprove incorporation under sec. 4 of this Act, 06 notwithstanding other provisions of law, the region becomes a separate unorganized borough 07 on the first Monday following certification of the election. Beginning on January 1 of the 08 year following certification of the election, an annual tax of six mills is levied each year on 09 the full and true value of taxable property in that unorganized borough. Money from taxes 10 levied under this section may be appropriated for funding for regional educational attendance 11 areas. The provisions of AS 29.45.010 - 29.45.500 apply to taxes levied under this section. 12 The state assessor shall assess the property, collect the taxes levied under this section and 13 deposit them in the general fund, and perform the mandatory duties of a municipality, a board 14 of equalization, or a municipal official under AS 29.45.010 - 29.45.500, except that the state 15 assessor may not act through the adoption of an ordinance or grant exemptions from taxation 16 not required under AS 29.45.010 - 29.45.500. 17 * Sec. 7. The Department of Community and Regional Affairs shall develop a proposed 18 method of levying and collecting taxes in separate unorganized boroughs formed under sec. 19 6 of this Act, proposed rates of taxation, and a proposed method of establishing boards of 20 equalization in each of the unorganized boroughs. The department shall obtain and consider 21 public input on the question of establishing a tax system in the unorganized boroughs. The 22 department shall prepare draft legislation establishing a tax system, rates of taxation, and a 23 board of equalization in each of the unorganized boroughs. The draft legislation must also 24 conform the statutes to sec. 6 of this Act, except that the legislation may modify the property 25 tax imposed under that section. By January 1, 1998, the department shall submit the draft 26 legislation to the senate and the house of representatives. 27 * Sec. 8. AS 29.05.011(a)(5), 29.05.021, and 29.05.031(b) are repealed.