03/14/2024 08:00 AM House COMMUNITY & REGIONAL AFFAIRS

                  HB 151-FORMATION OF BOROUGHS                                                                              
                                                                                                                                
9:14:48 AM                                                                                                                    
                                                                                                                                
CHAIR MCCORMICK announced that the  final order of business would                                                               
be HOUSE BILL NO. 151, "An  Act relating to proposals for borough                                                               
incorporation submitted to the legislature  by the Local Boundary                                                               
Commission."                                                                                                                    
                                                                                                                                
9:15:09 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MIKE  CRONK,   Alaska  State  Legislature,  prime                                                               
sponsor, presented HB 151.   He paraphrased the sponsor statement                                                               
[included  in  the  committee  packet],  which  read  as  follows                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     Unfortunately, and hopefully  through simply oversight,                                                                    
     the public process and the  "Will of the people" failed                                                                    
     to  be included  in a  2005 piece  of legislation  that                                                                    
     became codified in 2006. ( AS 29.05.115.)                                                                                  
                                                                                                                                
     HB  151 simply  corrects  the  deficiency by  requiring                                                                    
     that a  full public process  be carried out  before the                                                                    
     legislature   receives  a   proposal  from   the  Local                                                                    
     Boundary Commission  under Title  X, Section 12  of the                                                                    
     Constitution.                                                                                                              
                                                                                                                                
     As  laid   out  in  Article   I,  Section  12   if  the                                                                    
     legislature receives  a proposal by the  Local Boundary                                                                    
     Commission,  there are  only  two  options. First,  the                                                                    
     legislature may reject the proposal  with a majority in                                                                    
     the House and the Senate.                                                                                                  
                                                                                                                                
     Second, the  legislature can choose to  take no action,                                                                    
     in which case the proposal remains law.                                                                                    
     Under  this  method  of   forming  government  the  LBC                                                                    
     without  any legislative  public hearings,  establish a                                                                    
     new Borough unless rejected by the legislature.                                                                            
     It is  extremely important under  present law  that the                                                                    
     legislature know the "Will of  the people" contained in                                                                    
     any proposal submitted.                                                                                                    
                                                                                                                                
     Presently  the  LBC  is required  to  hold  two  public                                                                    
     hearings  in  the  area being  proposed  and  under  no                                                                    
     obligation  to  follow  the opinions  of  those  giving                                                                    
     testimony at the hearings.                                                                                                 
     HB 151 ensures  the legislature will know  the level of                                                                    
     public support before making  any decision concerning a                                                                    
     proposed Borough.                                                                                                          
                                                                                                                                
9:16:53 AM                                                                                                                    
                                                                                                                                
DAVE STANCLIFF,  Staff, Representative  Mike Cronk,  Alaska State                                                               
Legislature, on behalf of Representative  Cronk, prime sponsor of                                                               
HB  151,  presented  the  sectional  analysis  [included  in  the                                                               
committee packet],  which read  as follows  [original punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     Section 1:                                                                                                                 
                                                                                                                                
     Adds new language to existing statute AS 29.05.115 (a)                                                                     
                                                                                                                                
     Ensures  that before  the Legislature  takes action  on                                                                    
     incorporation of a Borough, they  will know that voting                                                                    
     age residents within the area support it.                                                                                  
                                                                                                                                
MR.   STANCLIFF  expounded   on  the   Alaska  Constitution   and                                                               
emphasized  that  the legislature  is  within  its rights  as  an                                                               
elected  body  to determine  how  the  Local Boundary  Commission                                                               
(LBC) would act and conduct its procedures.                                                                                     
                                                                                                                                
CHAIR MCCORMICK sought questions from committee members.                                                                        
                                                                                                                                
9:21:34 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  RUFFRIDGE  asked how  to  best  determine that  a                                                               
majority of residents  of voting age within the  area support the                                                               
proposal.   He opined that a  public hearing may not  be the best                                                               
method.                                                                                                                         
                                                                                                                                
REPRESENTATIVE CRONK deferred to Mr. Stancliff.                                                                                 
                                                                                                                                
MR. STANCLIFF  explained that the  LBC can hold two  hearings and                                                               
is  under  no obligation  to  take  directive from  the  opinions                                                               
provided by testifiers.                                                                                                         
                                                                                                                                
9:25:29 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HIMSCHOOT pointed out that  the second way to form                                                               
a borough    the local  option - is through  signature gathering.                                                               
She asked whether this option is suggested in the bill.                                                                         
                                                                                                                                
REPRESENTATIVE CRONK deferred to Mr. Stancliff.                                                                                 
                                                                                                                                
MR.  STANCLIFF gave  further historical  context.   He  explained                                                               
that the  committee's options  would be to  return to  the public                                                               
process  or stick  with the  language that  requires a  majority.                                                               
The  language could  be made  more "open,"  he said,  to avoid  a                                                               
"precise number."   He acknowledged  that the process could  be a                                                               
lot more public than it is now.                                                                                                 
                                                                                                                                
REPRESENTATIVE  HIMSCHOOT   sought  to   confirm  that   per  [AS                                                               
29.05.115  subsection]  (b),  the  LBC should  not  initiate  the                                                               
action  of  forming  a  borough.   She  asked  what  would  cause                                                               
[subsection] (a) to occur.                                                                                                      
                                                                                                                                
MR. STANCLIFF  recounted an attempt  to force a borough  where it                                                               
was not wanted.                                                                                                                 
                                                                                                                                
REPRESENTATIVE  HIMSCHOOT asked  whether it  would be  an "insane                                                               
idea" to remove [subsection] (a) all together.                                                                                  
                                                                                                                                
MR.  STANCLIFF  explained that  if  subsection  (a) were  removed                                                               
entirely, nothing would change, so  the LBC would not be required                                                               
to involve  the public in  the creation  of a borough  aside from                                                               
two public hearings.                                                                                                            
                                                                                                                                
REPRESENTATIVE HIMSCHOOT  clarified that  if subsection  (a) were                                                               
removed, the local option would remain intact.                                                                                  
                                                                                                                                
MR. STANCLIFF  shared his belief  that the bill sponsor  would be                                                               
open to  that idea.  He  emphasized that the goal  was to involve                                                               
the public as much as possible.                                                                                                 
                                                                                                                                
9:33:10 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCCABE   described  the  formation  of   a  local                                                               
improvement   district  (LID).      Similarly,   he  shared   his                                                               
understanding that the LBC would  have to determine how they know                                                               
that the majority of voting age citizens support the proposal.                                                                  
                                                                                                                                
REPRESENTATIVE   CRONK   asserted   that   the   legislature   is                                                               
responsible for  determining the role of  boards and commissions.                                                               
In response  to Representative Ruffridge's previous  question, he                                                               
said if it  were up to him,  a majority would be  determined by a                                                               
vote of the people.                                                                                                             
                                                                                                                                
9:37:18 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MEARS  sought to  confirm that the  current public                                                               
process involves two required public  meetings of the LBC and any                                                               
public legislative hearings.                                                                                                    
                                                                                                                                
MR.  STANCLIFF  said that  is  partially  correct.   If  the  LBC                                                               
receives a request  from a government entity or anyone  to form a                                                               
borough, two public  hearings are held, and  the commission alone                                                               
makes the  decision by a  vote of all five  members.  The  LBC is                                                               
then required to  submit the request to the  legislature.  Unless                                                               
the legislature  votes down  the proposal by  a majority  in both                                                               
bodies, the request becomes law.                                                                                                
                                                                                                                                
REPRESENTATIVE   MEARS  expressed   concern  that   obtaining  "a                                                               
majority of  residents of  voting age" would  create a  very high                                                               
bar in terms of participation.                                                                                                  
                                                                                                                                
MR. STANCLIFF said  maybe someone on the committee  could come up                                                               
with  a better  way to  assess  the community's  preference.   He                                                               
suggested  that  the  list  of   permanent  fund  dividend  (PFD)                                                               
applicants could be polled.                                                                                                     
                                                                                                                                
9:42:11 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RUFFRIDGE  spoke to the difficulty  of determining                                                               
the  will of  a people  group and  advocated for  a multi-faceted                                                               
approach that includes an educational  component.  He opined that                                                               
currently, there is  no way to determine whether  the process was                                                               
done "rightly and well."                                                                                                        
                                                                                                                                
MR.   STANCLIFF  made   reference  to   a  commissioner   who  is                                                               
politically active.   He agreed that the process  should be long,                                                               
detailed, and unrushed, and that  the members should be unbiased,                                                               
adding that the legislature may  find a biased, five-member board                                                               
with constitutional authority very difficult to deal with.                                                                      
                                                                                                                                
9:46:39 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCCABE said  he could  see where  this particular                                                               
law  needs some  "massaging"  to  ensure that  the  board is  not                                                               
politically motivated.   He opined  that control should  be given                                                               
to the citizens.                                                                                                                
                                                                                                                                
REPRESENTATIVE  CRONK emphasized  that  the voice  of the  people                                                               
should be prioritized.                                                                                                          
                                                                                                                                
REPRESENTATIVE MCCABE clarified  that his point was  that the LBC                                                               
knows how survey the will of  the people instinctively.  He added                                                               
that the bill would just put  that sentiment "in words on a piece                                                               
of paper."                                                                                                                      
                                                                                                                                
MR. STANCLIFF reflected on the actions of a recent LBC meeting.                                                                 
                                                                                                                                
9:53:46 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HIMSCHOOT recalled  a similar  scenario in  which                                                               
the state Board of Education  took action without prior notice on                                                               
a  consequential matter.   She  requested an  explanation of  the                                                               
local option  process and whether  certain aspects  pertaining to                                                               
citizen input could be replicated in the bill.                                                                                  
                                                                                                                                
9:55:15 AM                                                                                                                    
                                                                                                                                
SANDRA  MOLLER,  Director,  Division of  Community  and  Regional                                                               
Affairs,   Department   of   Commerce,   Community   &   Economic                                                               
Development (DCCED),  described the  local option  process, which                                                               
involves a vote  of the people in the affected  areas through the                                                               
Division of Elections (DOE).                                                                                                    
                                                                                                                                
9:57:55 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HIMSCHOOT shared her understanding that the local                                                                
option involves an election and asked whether a similar election                                                                
could be implemented in HB 151.                                                                                                 
                                                                                                                                
MS. MOLLER answered yes, a similar process would be acceptable.                                                                 
                                                                                                                                
9:59:41 AM                                                                                                                    
                                                                                                                                
CHAIR MCCORMICK announced that HB 151 would be held over.