Legislature(1997 - 1998)
02/25/1998 01:35 PM Senate JUD
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SB 208 - VOTER APPROVAL OF SERVICE AREA CHANGES
SENATOR PARNELL introduced this bill as a means of strengthening
local control of service areas, in the spirit of Article 10,
Section 1, of the Alaska Constitution which established the
principle of maximum local control. The Constitution also enabled
the creation, alteration or abolishment of these service areas,
subject to provisions of law. Throughout Alaska, there are about
200 of these local service areas that assess themselves for a range
of services such as snow plowing and road maintenance. SENATOR
PARNELL stated that this bill requires a majority vote in three
situations: creation, alteration or change of a service area.
SENATOR PARNELL said an abolishment is subject to approval by the
majority of residents in the service area, abolishment and
replacement with a larger service area must be approved by a
majority of voters inside the existing service area, as well as a
majority of those within the proposed service area. SENATOR PARNELL
said areas being altered or combined must receive approval of the
majority of voters voting on the question and residing in each of
the service areas.
SENATOR PARNELL noted the bill is supported by many service area
boards around the state and he urged the committees's support.
MR. GENE KANE, representing the Department of Community and
Regional Affairs (DCRA), indicated that the bill diminishes local
control and is inconsistent with the five fundamental principles of
local government in Alaska. He agreed that Alaska's Constitution
provides for maximum local self-government but said SB 208 imposes
restrictions on the way certain service areas may be formed,
altered and abolished. The Constitutional delegates wanted
authority vested in the assembly to ensure a unified overview of
all functions, according to MR. KANE. He said the current law
allows for a local self-government that a borough assembly can
enact local laws to cover.
MR. KANE said the Constitution calls for the minimum of local
government units, and said SB 208 restricts the ability of local
governments to comply with this. He observed that there are
currently 250 service areas in Alaska within 16 organized boroughs,
with the Fairbanks North Star Borough containing over half of
these. MR. KANE said some of these service areas are tiny and this
bill would restrict the ability of the North Star Borough to
promote greater efficiency in its service area operations. He added
that the Constitution prevents the creation of new service areas in
home-rule and general-law governments if, consistent with the
constitutional provisions of maximum local self-government and
minimum numbers of local government units, the service can be
provided by an existing service area. Mr. Kane again said this bill
will restrict the ability of boroughs to conform with the
Constitution.
MR. KANE stated that the Constitution allows municipal governments
to take on home-rule status, which affords broader provisions than
any other state. He quoted a drafter of the Constitution who said,
"the Legislature should have the authority to deny local exercise
of specific powers when necessary in behalf of an overriding state
interest or to resolve conflicts of authority between home-rule
cities and home-rule boroughs. MR. KANE noted it was also assumed
that the Legislature would not act to limit home rule powers exept
under special circumstances. The Constitution prevents duplications
of tax-levying jurisdictions and SB 208 has the potential of
fostering this duplication, according to MR. KANE. He used the
possible annexation of an area near Kodiak to show how this might
occur. In conclusion, MR. KANE said DCRA does not support the bill
for the previously stated reasons and he mentioned he also had some
technical suggestions regarding the bill.
SENATOR PARNELL asked if the amendments were substantive or merely
clean up and MR. KANE indicated the latter.
MR. OCIE ADAMS, a volunteer representing the Road Service Area
Advisory Board, commended SENATOR PARNELL for looking out for the
taxpayer in this bil. MR. ADAMS said he'd like to see the power
returned to the people, so they may decide what they want done with
their service areas. He noted that the only area of concern is
section 2, line 14 which seems to require a city ordinance or voter
approval for a service area change. He wondered if this should read
"and". SENATOR MILLER said his reading shows it requires two
separate affirmative votes to effect a change. CHAIRMAN TAYLOR
asked if MR. ADAMS had a problem with two separate votes and MR.
ADAMS said he preferred it. It did seem to him that both the city
and the borough could agree and not require a vote of the service
area residents or the voters in the city. CHAIRMAN TAYLOR said he
believed MR. ADAMS was reading the bill correctly and the use of
the word "or" would seem to allow the city or the borough to make
changes by ordinance without a vote. MR. ADAMS verified that was
his concern and suggested the change would tighten things up.
SENATOR PEARCE asked if anything in the bill could be used by an
area of the state to prevent its residents from voting on the
establishment of an organized borough. SENATOR PARNELL did not
believe so, according to previous testimony form DCRA. MR. KANE
interjected that he did not see it being used in that context, as
it only applies within the 16 existing organized boroughs.
CHAIRMAN TAYLOR asked MR. KANE if he though the word "or" was
appropriate if the intent is to allow a vote, or if the word "and"
would be required. Mr. Kane said the latter was consistent with his
understanding and CHAIRMAN TAYLOR clarified if the vote was desired
the word would be "and". MR. KANE concurred. SENATOR PARNELL asked
if this was existing law and MR. KANE replied it was. SENATOR
PARNELL asked if the word was changed to "and" it would apply to
the recent situation in Haines. MR. ADAMS said he did not believe
so and stated that if the "or" was removed that would also delete
the conditional phrase and act to require the satisfaction of both
paragraphs.
SENATOR ELLIS inquired whether there had been testimony heard from
the municipal league and SENATOR PARNELL said no, they had no
coherent position at the time of the last hearing. SENATOR ELLIS
asked if there was an Anchorage assembly position on this
legislation and SENATOR PARNELL responded the only thing he could
relate was that, at last night's assembly meeting, there was a
motion to adopt a resolution in opposition to this bill and that
motion was tabled and no position was taken.
SENATOR PEARCE asked if this law had been in effect, could the
state have stopped providing Troopers to the Anchorage hillside.
SENATOR PARNELL responded that he did not believe so. CHAIRMAN
TAYLOR said he did not believe this would stop the state if they
wanted to take over, though he couldn't image that happening.
SENATOR PEARCE said she was really thinking about whether or not
the state could stop providing a certain type of service and if
this bill would prevent that. SENATOR PARNELL replied no, this bill
deals only with self-assessing service areas. CHAIRMAN TAYLOR
agreed he did not see the application here. MR. KANE repeated that
this bill relates only to the 16 organized boroughs, and he sees no
application outside of those service areas.
SENATOR ELLIS asked if SENATOR PARNELL had gotten an opinion on the
bill from Mayor Mystrom and SENATOR PARNELL stated he had not, nor
heard from his office.
MS. LINDA ANDERSON, representing the Fairbanks North Star Borough,
advised the committee she had not known that Fairbanks comprised
100 out of the 250 road service areas. She said the Fairbanks
assembly is constantly being approached by road service areas for
new proposals and abolishments and the concern is with the
provision on page 2, line 14, regarding combining road service
areas. She voiced the position that there is quite a bit of
duplication in those areas and the assembly would like to reserve
the right to decide whether to create a new road service area or
simply combine an area into an existing road service area. She
expressed her willingness to work with the sponsor on a solution to
this problem.
SENATOR PARNELL maintained that the assembly will ultimately decide
and suggested that their fear is of proliferation. MS. ANDERSON
said in fact they were most concerned with the combination of
areas. SENATOR PARNELL asked if the assembly had a problem asking
the residents of the areas to vote on combination of areas. MS.
ANDERSON replied that they are concerned with the possibility of a
stalemate, which would raise administrative costs and further
stretch the limited revenue-sharing funds they receive now. SENATOR
PARNELL commented it may make them more conscious of drawing
boundaries that the voters will approve. He said he wants these
decisions made as locally as possible.
CHAIRMAN TAYLOR asked MS. ANDERSON if the borough has area-wide
road powers now. She responded that they only had specific pockets
within the borough. CHAIRMAN TAYLOR said this was a result of their
failure to bite the bullet and get their roads all covered under
one road program. MS. ANDERSON replied that this was also a local
issue and this is how the residents wanted it. SENATOR PARNELL
remarked that this speaks well for the bill. MS. ANDERSON suggested
perhaps this might be optional to second class boroughs, which
would still allow some say by the assembly. CHAIRMAN TAYLOR said
Ketchikan has never taken on road powers and has no road equipment
nor fire vehicles. He said in his district one of the biggest
problems is with the hodgepodge of different water and sewer
systems.
CHAIRMAN TAYLOR asked again about the word "or". SENATOR PARNELL
said he was not prepared to change this without legal counsel.
CHAIRMAN TAYLOR agreed. SENATOR ELLIS noted that may give the
committee time to solicit opinions of other groups. SENATOR PARNELL
indicated that he did solicit the opinion of road service areas and
they responded.
SENATOR PARNELL moved Senate bill 208 from committee. SENATOR ELLIS
objected and explained that he believes, as the last responsible
committee working on the bill, they should get the necessary legal
advice on the "and" vs. "or" question and also the input of other
groups. SENATOR PARNELL acknowledged that they could get Tam Cook
on the phone in two minutes.
SENATOR ELLIS stated that legal issues should be resolved in the
judiciary committee and not the rules committee. SENATOR PARNELL
withdrew his motion and asked MS. TAM COOK about page 2, line 2.
MS. TAM COOK, from the legislative legal department, explained that
changing the word "or" to "and" would require the satisfaction of
both paragraphs on either side. SENATOR PARNELL asked what the
impact would be. MS. COOK said it would mean a city could no longer
act by ordinance, and would have to hold an election on the issue.
SENATOR PARNELL moved SB 208 from committee with individual
recommendations. Without objection, it was so ordered.
With no further business to come before the committee, they were
adjourned.
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