SSHB 16: "An Act relating to cities incorporated under state law that are home rule communities; and providing for an effective date."
00 SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 16 01 "An Act relating to cities incorporated under state law that are home rule communities; 02 and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 01.10.060(a)(4) is amended to read: 05 (4) "municipality" means a political subdivision incorporated under the 06 laws of the state that is a home rule community, a home rule or general law city, a 07 home rule or general law borough, or a unified municipality; 08 * Sec. 2. AS 01.10.060(a) is amended by adding a new paragraph to read: 09 (15) "city" means a home rule community, home rule city, or general 10 law city incorporated under the laws of the state. 11 * Sec. 3. AS 29.04.040(a) is amended to read: 12 (a) A second class city may be reclassified as a first class city. A first class or 13 home rule city may be reclassified as a second class city. A home rule community 14 may be reclassified as a home rule city. Reclassification is proposed by filing a
01 petition with the department. The department shall investigate the proposal and report 02 its findings to the Local Boundary Commission with its recommendations. The 03 commission shall hold at least one public hearing in the city on the proposal. The 04 commission may amend the petition and may impose conditions on the 05 reclassification. If the commission determines that the reclassification, as amended or 06 conditioned if appropriate, meets applicable standards under the state constitution and 07 commission regulations, meets the standards for incorporation under AS 29.05.011 for 08 the class of city proposed in the reclassification petition, and is in the best interests of 09 the state, it may accept the petition. Otherwise, it shall reject the petition. The 10 commission shall notify the city of its decision. The decision may be appealed under 11 AS 44.62 (Administrative Procedure Act). 12 * Sec. 4. AS 29.04.040(d) is amended to read: 13 (d) The council shall, within 30 days after receiving notification from the 14 Local Boundary Commission that a petition has been accepted, order an election on 15 the question of reclassification. The election shall be held at least 30 days after the 16 order and not later than the next regular election occurring after the 30-day period. If 17 more than one question is to be voted on at the election, each shall appear separately 18 on the ballot. However, if reclassification from a home rule community to a home 19 rule city requires adoption of a new charter, the question of approving the 20 charter and the reclassification may appear as a single question. 21 * Sec. 5. AS 29.05.011(b) is amended to read: 22 (b) A community that meets all the standards under (a) of this section except 23 (a)(1) may incorporate as a second class city or a home rule community. 24 * Sec. 6. AS 29.05.060 is amended to read: 25 Sec. 29.05.060. Petition. Municipal incorporation is proposed by filing a 26 petition with the department. The petition must include the following information 27 about the proposed municipality: 28 (1) class; 29 (2) name; 30 (3) boundaries; 31 (4) maps, documents, and other information required by the
01 department; 02 (5) composition and apportionment of the governing body; 03 (6) a proposed operating budget for the municipality projecting sources 04 of income and items of expenditure through the first full fiscal year of operation; 05 (7) for a borough or unified municipality, based on the number who 06 voted in the respective areas in the last general election, the signature and resident 07 address of 15 percent of the voters in 08 (A) home rule and first class cities in the area of the proposed 09 borough or unified municipality; and 10 (B) the area of the proposed borough or unified municipality 11 outside home rule and first class cities; 12 (8) for a first class borough or unified municipality, a designation of 13 areawide powers to be exercised; 14 (9) for a second class borough, a designation of areawide and 15 nonareawide powers to be exercised; 16 (10) for a home rule community or first class, second class, or home 17 rule city, a designation of the powers to be exercised; 18 (11) for a first class or home rule city, based on the number who voted 19 in the area in the last general election, the signatures and resident addresses of 50 20 voters in the proposed city or of 15 percent of the voters in the proposed city, 21 whichever is greater; 22 (12) for a second class city or home rule community, based on the 23 number who voted in the area in the last general election, the signatures and resident 24 addresses of 25 voters in the proposed city or of 15 percent of the voters in the 25 proposed city, whichever is greater; 26 (13) for a home rule community, home rule city, home rule borough, 27 or unified municipality, a proposed home rule charter. 28 * Sec. 7. AS 29.10.010(a) is amended to read: 29 (a) A general law borough [OR FIRST CLASS CITY] may adopt a charter for 30 its own government. A first class city may adopt a charter and become a home 31 rule city. A second class city may adopt a charter and become a home rule
01 community. 02 * Sec. 8. AS 29.10.010(c) is amended to read: 03 (c) At an incorporation, merger, or consolidation election, a municipality may 04 adopt a charter for its own government and incorporate, merge, or consolidate as a 05 home rule community, home rule city, home rule borough, or unified municipality. 06 * Sec. 9. AS 29.10.010(f) is amended to read: 07 (f) The proposed charter for a home rule municipality to be formed by 08 incorporation, merger, or consolidation shall be prepared by the petitioners and filed 09 with the petition to incorporate, merge, or consolidate a home rule community, home 10 rule city, home rule borough, or unified municipality. 11 * Sec. 10. AS 29.10 is amended by adding a new section to read: 12 Sec. 29.10.015. Home rule community charter. A charter for a home rule 13 community may provide that the council shall be known by another name as set out in 14 the charter, or that the mayor shall be known by another name as set out in the charter. 15 * Sec. 11. AS 29.10.020 is amended to read: 16 Sec. 29.10.020. Model charters. The department shall prepare at least one 17 model home rule charter for a home rule community, a city, a borough, and a unified 18 municipality. The model charters shall be made available to persons interested in 19 filing a petition to form a home rule municipality under AS 29.05.060 or 20 AS 29.06.090. 21 * Sec. 12. AS 29.20.640(a) is amended to read: 22 (a) A municipality shall file with the department 23 (1) maps and descriptions of all annexed or detached territory; 24 (2) a copy of the annual audit, or, for a second class city or a home 25 rule community, an audit or statement of annual income and expenditures; 26 (3) tax assessment and tax levy figures as requested; 27 (4) a copy of the current annual budget of the municipality; 28 (5) a summary of the optional property tax exemptions authorized 29 together with the estimate of the revenues lost to the municipality by operation of each 30 of the exemptions. 31 * Sec. 13. AS 29.35.030(a) is amended to read:
01 (a) A municipality may, only within its boundaries, exercise the powers of 02 eminent domain and declaration of taking in the performance of a power or function of 03 the municipality under the procedures set out in AS 09.55.250 - 09.55.460. In the case 04 of a home rule community or a second class city, the exercise of the power of 05 eminent domain or declaration of taking must be by ordinance that is submitted to the 06 voters at the next general election or at a special election called for that purpose. A 07 majority of the votes on the question is required for approval of the ordinance. 08 * Sec. 14. AS 29.35.120(a) is amended to read: 09 (a) The governing body shall provide for an annual independent audit of the 10 accounts and financial transactions of the municipality or, in the case of a home rule 11 community or second class city, an audit or statement of annual income and 12 expenditures. To make the audit, the governing body shall designate a public 13 accountant who has no personal interest, direct or indirect, in the fiscal affairs of the 14 municipality. Copies of the audit shall be available to the public upon request. 15 * Sec. 15. AS 29.35.250(c) is amended to read: 16 (c) A home rule city in a third class borough shall provide for planning, 17 platting, and land use regulation as provided by AS 29.35.180(b) for home rule 18 boroughs. A first class city in a third class borough shall provide for planning, 19 platting, and land use regulation as provided by AS 29.35.180(a) for first and second 20 class boroughs. A home rule community or second class city in a third class 21 borough may provide for planning, platting, and land use regulation as provided by 22 AS 29.35.180(a) for first and second class boroughs. 23 * Sec. 16. AS 29.35.260(b) is amended to read: 24 (b) A home rule or first class city outside a borough is a city school district 25 and shall establish, operate, and maintain a system of public schools as provided by 26 AS 29.35.160 for boroughs. A home rule community or second class city outside a 27 borough is not a school district and may not establish a system of public schools. 28 * Sec. 17. AS 29.35.260(c) is amended to read: 29 (c) A home rule city outside a borough shall provide for planning, platting, 30 and land use regulation as provided by AS 29.35.180(b) for home rule boroughs. A 31 first class city outside a borough shall, and a home rule community or a second class
01 city outside a borough may, provide for planning, platting, and land use regulation as 02 provided by AS 29.35.180(a) for first and second class boroughs. 03 * Sec. 18. AS 29.45.590 is amended to read: 04 Sec. 29.45.590. Limited property taxing power for home rule communities 05 and second class cities. A home rule community or second class city may by 06 referendum levy property taxes as provided for first class cities. However, levy of an 07 ad valorem tax by a home rule community or second class city may not exceed two 08 percent of the assessed value of the property taxed, except that the limit does not apply 09 to a levy necessary to avoid a default upon payment of principal and interest of bonded 10 or other indebtedness that is secured by a pledge to levy ad valorem or other taxes 11 without limit to meet debt payments. 12 * Sec. 19. AS 29.60.030(e) is amended to read: 13 (e) In addition to the computation for municipalities that levy and collect a 14 property tax, the department shall determine an estimated full and true assessed 15 property value under (d) of this section for 16 (1) each municipality that is a school district and that does not levy and 17 collect a property tax; 18 (2) each second class city or home rule community with a population 19 of 750 or more persons; however, a computation is not required under this paragraph 20 more often than once during a period of three successive calendar years; and 21 (3) all other second class cities and home rule communities, by 22 determining the average per capita full and true assessed property value of all cities 23 having a population of less than 750 persons in which an assessment has been 24 completed by a municipality or for which a determination is not made under (1) or (2) 25 of this subsection. 26 * Sec. 20. AS 29.71.800(4) is amended to read: 27 (4) "city" means a general law first or second class city, [OR] a home 28 rule city, or a home rule community; 29 * Sec. 21. AS 29.71.800(7) is amended to read: 30 (7) "council" means the governing body of a city, and includes the 31 governing body of a home rule community regardless of the name of that
01 governing body established under the community's charter; 02 * Sec. 22. AS 29.71.800(13) is amended to read: 03 (13) "municipality" means a political subdivision incorporated under 04 the laws of the state that is a home rule community, a home rule or general law city, 05 a home rule or general law borough, or a unified municipality; 06 * Sec. 23. AS 29.71.800 is amended by adding a new paragraph to read: 07 (26) "home rule city" means a city that has adopted a charter but does 08 not include a home rule community. 09 * Sec. 24. The uncodified law of the State of Alaska is amended by adding a new section to 10 read: 11 CONFORMING BILL. The division of legal and research services of the Legislative 12 Affairs Agency shall prepare a bill conforming Alaska Statutes to the changes made by this 13 Act. Except as provided in this Act, mandatory statutes that apply to municipalities shall be 14 changed so that home rule communities are treated in the same way that second class cities 15 are treated, while statutes that grant home rule municipalities discretion to perform a function 16 or participate in a program shall be changed so that home rule communities are treated in the 17 same way that home rule cities are treated. The bill shall be presented to the House and 18 Senate Rules Committees for introduction by those committees on the first day of the Second 19 Regular Session of the Twenty-Second Alaska State Legislature. 20 * Sec. 25. Sections 1 - 23 of this Act take effect July 1, 2002. 21 * Sec. 26. Section 24 of this Act takes effect immediately under AS 01.10.070(c).