04/26/1999 01:36 PM Senate CRA

        SB 156-MUNICIPAL CLASSIFICATIONS AND BOUNDARIES                                                                         
                                                                                                                                
KEVIN WARING, Chairman of the Local Boundary Commission, made the                                                               
following comments via teleconference.  The LBC and Alaska                                                                      
Municipal League (AML) support SB 156, which amends language put                                                                
into statute in 1985.  SB 156 does not alter LBC's powers, but does                                                             
make two changes.  First, SB 156 makes consistent in Title 29,                                                                  
language pertaining to five types of petitions regarding how the                                                                
LBC may amend and accept, or reject, each type of petition.  After                                                              
researching the legislative history of those sections, Department                                                               
of Community and Regional Affairs' (DCRA) staff determined that no                                                              
purposeful reason existed for the inconsistent language.  Uniform                                                               
language throughout Title 29 will reduce confusion for petitioners.                                                             
Second, SB 156 will endorse, by statute, the LBC's present practice                                                             
of attaching conditions when approving certain types of petitions.                                                              
The LBC believes it is authorized to attach conditions; that                                                                    
viewpoint has been endorsed by the Department of Law.  The practice                                                             
of attaching conditions is often beneficial to petitioners, and it                                                              
is helpful to the LBC in protecting the state's interest.                                                                       
                                                                                                                                
CHAIRMAN WARING illustrated the need to attach conditions with the                                                              
following examples.  The LBC has approved seven dissolution                                                                     
petitions filed by second class cities since 1994.  At the time the                                                             
dissolution was approved, the cities continued to have assets,                                                                  
liabilities and financial obligations to other parties.  The LBC                                                                
conditionally approved the dissolutions subject to proper                                                                       
disposition of public assets and debt clearance.  On occasion, the                                                              
LBC identified a sales or bed tax as a revenue source to finance                                                                
the operations of a to-be incorporated city.  Approval of petitions                                                             
for incorporation was conditioned upon local approval of the taxes                                                              
to ensure that the petitioner would  have adequate revenue sources                                                              
to fund its operations.                                                                                                         
                                                                                                                                
There being no further testimony, SENATOR MACKIE moved SB 156 from                                                              
committee with individual recommendations.  There being no                                                                      
objection, the motion carried.