Legislature(2005 - 2006)CAPITOL 120

04/18/2005 01:00 PM House JUDICIARY


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Audio Topic
01:20:12 PM Start
01:20:54 PM Attorney General of Alaska
01:22:05 PM Board of Governors of the Alaska Bar
01:34:21 PM HB257
03:28:36 PM HB133
03:55:02 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Confirmation hearing: Bd of Govs of the TELECONFERENCED
Ak Bar - Joseph N. Faulhaber
+= HB 257 STATE PROCUREMENT ELECTRONIC TOOLS TELECONFERENCED
Heard & Held
+= HB 133 LOCAL BOUNDARY COMMISSION REGS & POWERS TELECONFERENCED
Moved CSSSHB 133(JUD) Out of Committee
+ HB 92 UNIVERSITY OF ALASKA AND CORPORATIONS TELECONFERENCED
Scheduled But Not Heard
+ HB 177 STATE EMPLOYEE RETIREMENT CONTRIBUTIONS TELECONFERENCED
Scheduled But Not Heard
+ Bills Previously Heard/Scheduled TELECONFERENCED
Confirmation hearing: Attorney General
<Continued from 4/13 8:30 a.m. meeting>
HB 133 - LOCAL BOUNDARY COMMISSION REGS & POWERS                                                                              
                                                                                                                                
3:28:36 PM                                                                                                                    
                                                                                                                                
CHAIR McGUIRE  announced that the  final order of  business would                                                               
be SPONSOR  SUBSTITUTE FOR HOUSE  BILL NO. 133, "An  Act relating                                                               
to  incorporation of  boroughs and  to regulations  of the  Local                                                               
Boundary  Commission  to  provide standards  and  procedures  for                                                               
municipal   incorporation,  reclassification,   dissolution,  and                                                               
certain  municipal   boundary  changes;  and  providing   for  an                                                               
effective date."  [Before the committee was CSSSHB 133(STA).]                                                                   
                                                                                                                                
RYNNIEVA  MOSS, Staff  to  Representative  Coghill, Alaska  State                                                               
Legislature,   sponsor   of  SSHB   133,   said   on  behalf   of                                                               
Representative Coghill  that the  bill originally did  one thing,                                                               
which was  to say that  any regulations  that are adopted  by the                                                               
Local  Boundary  Commission  have  to be  consistent  with  state                                                               
statute.   This  concept was  engendered  by the  discovery of  a                                                               
regulation  that allowed  for an  aggregate  vote to  be used  to                                                               
annex  land into  a borough.   State  law, however,  requires the                                                               
annexation of  land into a borough  to be decided at  an election                                                               
of the voters living in the area  to be annexed, and it must pass                                                               
by  a majority  vote.    She explained  that  the aggregate  vote                                                               
allows all the residents, both of  the area to be annexed as well                                                               
as of  the existing borough, to  vote, and if, via  that combined                                                               
vote,  it is  approved,  the area  could then  be  annexed.   She                                                               
clarified that  SSHB 133 says  that both  the area to  be annexed                                                               
and the  area of the  existing municipality each have  to approve                                                               
annexation  by   a  majority  vote;   this  will   eliminate  the                                                               
possibility of a  "hostile takeover" of an un-annexed  area by an                                                               
existing municipality.                                                                                                          
                                                                                                                                
MS. MOSS pointed out that Section  1 says that the Local Boundary                                                               
Commission may not  amend a petition or impose  conditions on the                                                               
incorporation,  which,  she  said,   is  a  change  in  statutory                                                               
language, but noted  that the constitution clearly  says that the                                                               
Local Boundary  Commission will do  "this" as prescribed  by law,                                                               
that being statutory  law passed by the legislature.   She turned                                                               
attention   to   Section  2,   and   said   that  under   current                                                               
constitutional authority, the Local  Boundary Commission can take                                                               
a proposal to the legislature for  its approval without a vote of                                                               
the people; Section  2, in contrast, says that there  needs to be                                                               
at least two  public hearings and that there should  be a vote of                                                               
the people.   Ms. Moss noted that Legislative  Legal and Research                                                               
Services told  her that  Section 2 probably  would not  survive a                                                               
constitutional challenge.   She  said that  she had  an amendment                                                               
prepared that would  take out the election provision  so that the                                                               
bill could withstand such a challenge.                                                                                          
                                                                                                                                
REPRESENTATIVE GRUENBERG  commented that  he had asked  that this                                                               
bill be referred to this  committee specifically to deal with the                                                               
constitutionality of  the bill.   He suggested that  the language                                                               
on page  2, line 5, "and  shall notify the director  of elections                                                               
of the incorporation proposal", be deleted from the bill.                                                                       
                                                                                                                                
REPRESENTATIVE COGHILL,  speaking as  the sponsor, said  he would                                                               
prefer to delete  the language rather than approaching  it from a                                                               
severability issue  because of the  costs associated  with trying                                                               
to defend it.  He said:                                                                                                         
                                                                                                                                
     I appreciate  the severability issue, but  I don't want                                                                    
     the rest  of the  bill to  get put in  a place  where a                                                                    
     court can put the whole thing  under a cloud when all I                                                                    
     wanted was  a simple, little  fix. ... Under  this bill                                                                    
     we're  testing the  legislative  authority against  the                                                                    
     boundary  commission  authority,   and  I'm  asserting,                                                                    
     rather strongly, legislative  authority here.  However,                                                                    
     there [are]  ... some  real constitutional  reasons for                                                                    
     the boundary commission, and when  we go back and we've                                                                    
     studied it in the  different committees that we've been                                                                    
     in, I  would be  satisfied in  taking this  portion out                                                                    
     because it still  then allows two public  hearings in a                                                                    
     community,  which, to  me, ...  kicks a  door open  for                                                                    
     more public  process.   And then  the vote  wouldn't be                                                                    
     required.                                                                                                                  
                                                                                                                                
3:35:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  agreed with Representative  Coghill and                                                               
therefore  announced  that  he  would  not  offer  his  amendment                                                               
labeled 24-LS0512\Y.1, Cook, 4/13/05, which read:                                                                               
                                                                                                                                
     Page 3, following line 22:                                                                                                 
          Insert a new bill section to read:                                                                                    
        "*  Sec. 6.   The  uncodified  law of  the State  of                                                                
     Alaska is amended by adding a new section to read:                                                                         
          SEVERABILITY.  Under AS 01.10.030, if any                                                                             
     provision of this  Act or the application of  it to any                                                                    
     person or  circumstance is held invalid,  the remainder                                                                    
     of this  Act and  the application  to other  persons or                                                                    
     circumstances are not affected."                                                                                           
                                                                                                                                
     Renumber the following bill section accordingly.                                                                           
                                                                                                                                
REPRESENTATIVE  GRUENBERG  commented  that   he  didn't  see  any                                                               
serious problem  with requiring the Local  Boundary Commission to                                                               
hold two public hearings.                                                                                                       
                                                                                                                                
REPRESENTATIVE COGHILL  noted that the Local  Boundary Commission                                                               
was amenable  to having  two hearings, but  [language on  page 2,                                                               
line 5] became problematic.                                                                                                     
                                                                                                                                
MS.  MOSS relayed  that former  Lieutenant Governor  Jack Coghill                                                               
testified  at a  House State  Affairs Standing  Committee hearing                                                               
during which  he was  asked about  Section 1.   She said  that he                                                               
offered  his belief  that  the  bill put  into  statute what  the                                                               
intent was of  the constitutional convention.   She commented, "I                                                               
think   those   are  some   very   strong   words  that   support                                                               
Representative Coghill's desire for  the legislature to make sure                                                               
that the  Local Boundary  Commission is not  stepping out  of ...                                                               
[its] bounds."                                                                                                                  
                                                                                                                                
REPRESENTATIVE   GRUENBERG   explained  that   his   [un-offered]                                                               
amendment   really   just   calls  attention   to   the   general                                                               
severability statute,  but it  really doesn't  add anything.   He                                                               
reiterated  his belief  that the  committee should  instead adopt                                                               
Representative Coghill's suggested change.                                                                                      
                                                                                                                                
3:37:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG asked  whether  the  Department of  Law                                                               
(DOL) would have any problem defending Section 1 of the bill.                                                                   
                                                                                                                                
SARAH FELIX, Assistant Attorney  General, Labor and State Affairs                                                               
Section,  Civil  Division  (Juneau),  Department  of  Law  (DOL),                                                               
stated that she  was attending the meeting on  behalf of Marjorie                                                               
Vandor, who is  assigned to the Local  Boundary Commission's work                                                               
and who would be back in  Juneau tomorrow.  Ms. Felix stated that                                                               
Ms. Vandor had said that she  is concerned about Section 1 of the                                                               
bill.  Ms. Felix continued:                                                                                                     
                                                                                                                                
         [Ms. Vandor] indicated that the Local Boundary                                                                         
     Commission is one of the few constitutionally created                                                                      
     commissions, and  that the framers expressed  an intent                                                                    
     that boundary  decisions be made at  a statewide rather                                                                    
     than a  local level because of  the statewide interests                                                                    
     in  the municipal  organization of  Alaska.   Case law,                                                                    
     interpreting the  Local Boundary  Commission authority,                                                                    
     has found  that the commission has  discretion to alter                                                                    
     boundaries  presented in  incorporation petitions.  ...                                                                    
     Case  law  has  also   recognized  the  Local  Boundary                                                                    
     Commission's   constitutionally-based  authority.   ...                                                                    
     However,  we  know  that  not   every  issue  has  been                                                                    
     decided.    I  mean,  there has  been  some  litigation                                                                    
     concerning   the  authority   of  the   Local  Boundary                                                                    
     Commission  but there  are still  a  lot of  unanswered                                                                    
     questions.                                                                                                                 
                                                                                                                                
     The  line  dividing  the  Local  Boundary  Commission's                                                                    
     constitutional   authority    and   the   legislature's                                                                    
     authority to enact laws  restricting the Local Boundary                                                                    
     Commission's   authority   is   not   entirely   clear.                                                                    
     Existing  precedent suggests  that  removing the  Local                                                                    
     Boundary  Commission's authority  to change  boundaries                                                                    
     in  incorporation  petitions  raises  a  constitutional                                                                    
     issue.                                                                                                                     
                                                                                                                                
MS. FELIX added:                                                                                                                
                                                                                                                                
     Ms. Vandor wanted me to  stress that her reading of the                                                                    
     constitutional  debate   indicates  that   the  framers                                                                    
     intended   that  the   concept   behind  adopting   the                                                                    
     constitutional   provision   authorizing   the   [Local                                                                    
     Boundary  Commission]  was   that  political  decisions                                                                    
     don't  usually   create  proper  boundaries   and  that                                                                    
     boundaries should  be established  at the  state level,                                                                    
     and that  the advantage of  the method proposed  in the                                                                    
     constitution for the Local  Boundary Commission lies in                                                                    
     placing  the  process  at a  level  where  areawide  or                                                                    
     statewide needs can be taken  into account, and that by                                                                    
     placing  that  authority  in this  third  party  -  the                                                                    
     commission  - the  arguments for  and against  boundary                                                                    
     changes can be analyzed objectively.                                                                                       
                                                                                                                                
3:40:39 PM                                                                                                                    
                                                                                                                                
MS. MOSS  noted that  the case  law is based  on a  state statute                                                               
that  this bill  would change.   She  also pointed  out that  the                                                               
constitution  says  that  the  [Local  Boundary  Commission]  may                                                               
consider  any proposed  local  government  boundary changes,  but                                                               
doesn't  say that  the commission  can amend  or alter  it.   She                                                               
opined,   "I  think   the  legislature   definitely,  under   the                                                               
constitution,  has  the  authority  to change  this  statute  and                                                               
direct the Local  Boundary Commission."  She  stated that Article                                                               
XII, Section  11, [of  the Alaska  State Constitution]  says that                                                               
"by law"  and "by  the legislature"  can be  used interchangeably                                                               
with  regard  to  law-making powers;  therefore,  she  concluded,                                                               
"prescribed by  law" doesn't mean  the constitution or  the Local                                                               
Boundary Commission,  but instead means statutes  that are passed                                                               
by the legislature.                                                                                                             
                                                                                                                                
3:41:42 PM                                                                                                                    
                                                                                                                                
EDGAR   BLATCHFORD,   Commissioner,   Department   of   Commerce,                                                               
Community, &  Economic Development  (DCCED), offered  his apology                                                               
for not  advising the bill  sponsor of the  department's concerns                                                               
sooner.  He stated:                                                                                                             
                                                                                                                                
     The department  has this obligation to  be the advocate                                                                    
     for   the   unorganized    borough   and   to   promote                                                                    
     municipalities,  whether  they're cities  or  boroughs.                                                                    
     And  our  concerns are  that  [the  bill] reverses  the                                                                    
     Local  Boundary  Commission's  authority to  amend  and                                                                    
     impose  conditions on  the petition.   We're  concerned                                                                    
     that the  voters must first approve  this annexation or                                                                    
     detachment before the legislature  can take action.  We                                                                    
     are  also  concerned  that  proposals  for  legislative                                                                    
     review  must  first be  approved  by  residents of  the                                                                    
     area.   And  we're concerned  also that  the annexation                                                                    
     into  existing  boroughs  and cities  would  be  almost                                                                    
     impossible  or probably  improbable without  support of                                                                    
     the annexed areas.                                                                                                         
                                                                                                                                
     As it  is, it's unlikely  that there would be  any more                                                                    
     organized governments  in the unorganized  borough, and                                                                    
     the  unorganized   borough,  we  believe,   can  remain                                                                    
     confident  that until  they decide  to incorporate,  an                                                                    
     existing borough  or city would  not be able  to attach                                                                    
     them to their  boundaries.  And looking at  the bill as                                                                    
     it is ..., we believe  this could impede development of                                                                    
     natural resources.   We  believe too  that as  the bill                                                                    
     ... stands now,  ... it would hinder  the assumption of                                                                    
     the  local responsibilities  by local  people.   And we                                                                    
     also  believe ...  that the  bill  could prevent  local                                                                    
     people from  seizing the  opportunities that  come with                                                                    
     local government.                                                                                                          
                                                                                                                                
COMMISSIONER BLATCHFORD noted that he had not seen any of the                                                                   
proposed [amendments].                                                                                                          
                                                                                                                                
REPRESENTATIVE COGHILL relayed that the following language in                                                                   
Section 2 will be removed if the committee agrees:                                                                              
                                                                                                                                
     and  shall   notify the  director of  elections of  the                                                                    
     incorporation   proposal.     Within   30  days   after                                                                    
     notification, the director of  elections shall order an                                                                    
     election  in the  proposed  borough  area to  determine                                                                    
     whether the  voters desire incorporation.   Only if the                                                                    
     voters   approve  the   incorporation  may   the  Local                                                                    
     Boundary   Commission  submit   the  proposal   to  the                                                                    
     legislature                                                                                                                
                                                                                                                                
REPRESENTATIVE COGHILL went on to say:                                                                                          
                                                                                                                                
     I think  we need  to organize  in Alaska.   We  need to                                                                    
     organize  in   boroughs.     But  the   [Alaska  State]                                                                    
     Constitution has allowed  for unorganized and organized                                                                    
     boroughs.   It also said  that as we begin  to populate                                                                    
     and become  an economy,  that we  are to  be considered                                                                    
     organization along several different  criteria.  And so                                                                    
     we  set up  a  boundary commission  to  help us  figure                                                                    
     those things  out.   But at  the end  of the  day, it's                                                                    
     going to be based on the  law that we put together that                                                                    
     respects the right  of the individual voter.   And it's                                                                    
     our  job to  protect that.   It's  the administration's                                                                    
     job  to   administer.    So   I  can   recognize  their                                                                    
     reluctance  because they're  going  to  advocate for  a                                                                    
     particular style that they've been doing.                                                                                  
                                                                                                                                
     [The DCCED  is] going  to bring  their proposals  to us                                                                    
     and here's the action that we  have:  ... that the only                                                                    
     action  that  the  legislature  can  do  is  disapprove                                                                    
     something.    That's  a huge  negative  vote.    Almost                                                                    
     everything   else  we   do   in   the  legislature   is                                                                    
     affirmative with the  exception of this one  issue.  So                                                                    
     it  gives   the  Local   Boundary  Commission   a  huge                                                                    
     authority.    And  so  the authority  then  has  to  be                                                                    
     carefully crafted  by law.   And  so I  understand that                                                                    
     [the  DCCED  is]  concerned about  it,  but  ...  [our]                                                                    
     constitutional   duty  is   to  make   sure  that   the                                                                    
     individual voters in those areas  are not forced into a                                                                    
     government that they  don't want. ... We  want a larger                                                                    
     agency looking at the need to organize.                                                                                    
                                                                                                                                
3:48:13 PM                                                                                                                    
                                                                                                                                
DEBBIE  THOMPSON stated  that she  is a  concerned resident  of a                                                               
subdivision in  Union Bay,  near Meyers Chuck.   She  stated that                                                               
she strongly  believes that the  best way to reflect  the desires                                                               
of  the  community  is to  be  able  to  let  the people  of  the                                                               
communities vote  on the issues  rather than just  bypassing them                                                               
to go to the legislature.                                                                                                       
                                                                                                                                
3:49:56 PM                                                                                                                    
                                                                                                                                
VIOLA JERREL, Ph.D., Alaskans Opposed  to Annexation, stated that                                                               
she  was  also speaking  for  Doris  Cabana.   She  testified  in                                                               
support  of SSHB  133 and  said:   "Regarding any  attachments or                                                               
annexations, we want  a vote of the people only  in the area that                                                               
a city  or another group is  trying to annex.   We do not  want a                                                               
combined vote;  we do  not want  an aggregate  vote."   She noted                                                               
that she and Doris Cabana hired  Attorney Robert C. Erwin, who is                                                               
a former  Alaska Supreme Court  justice, to oppose  annexation by                                                               
the  City of  Homer.   She further  noted that  a superior  court                                                               
judge in  Anchorage remanded  the Homer  annexation case  back to                                                               
the Local  Boundary Commission  to consider  the effect  that the                                                               
Homer  annexation  of  4.58  square miles  had  on  the  Kachemak                                                               
Emergency Service Area of 214 miles.                                                                                            
                                                                                                                                
DR.  JERREL  referred   to  a  meeting  of   the  Local  Boundary                                                               
Commission on  January 5,  2005, during which  the City  of Homer                                                               
Annexation Remand  was on the  agenda, and offered  the following                                                               
as a statement  purportedly made at that  meeting by Commissioner                                                               
Robert Harcharek:                                                                                                               
                                                                                                                                
     I  strongly  believe  that   the  judicial  system  was                                                                    
     totally  out of  line in  remanding us  to rehear  this                                                                    
     action.   It is  not in  the administrative  code, it's                                                                    
     not a  part of our  legislative procedures. ...  I feel                                                                    
     that if  we're going  to send a  message, it's  to tell                                                                    
     the judges  to stay the hell  out of it because  it has                                                                    
     nothing for them to do with it.                                                                                            
                                                                                                                                
DR. JERREL  opined that this statement  by Commissioner Harcharek                                                               
was illegal and inappropriate.                                                                                                  
                                                                                                                                
DR. JERREL expressed  her belief that the  current Local Boundary                                                               
Commission is not following the  order of the court and therefore                                                               
the members need  to be replaced.  She continued:   "Public money                                                               
cannot  be used  to deny  people  the due  process of  law.   The                                                               
United States  Constitution is  the supreme law  of the  land and                                                               
everyone  has to  go  by it,  including the  judges.   The  Local                                                               
Boundary Commission has to go by it.  They have to be replaced."                                                                
                                                                                                                                
3:53:50 PM                                                                                                                    
                                                                                                                                
CHAIR McGUIRE closed public testimony on SSHB 133.                                                                              
                                                                                                                                
REPRESENTATIVE COGHILL made a motion  to adopt Amendment 1, which                                                               
read [original punctuation provided]:                                                                                           
                                                                                                                                
     Page 2, line 5:                                                                                                            
     After the word "incorporation"                                                                                             
     Delete all language through line 9, except the period.                                                                     
                                                                                                                                
REPRESENTATIVE COGHILL said that  Amendment 1 "takes the election                                                               
out of it but leaves the public comment hearing in it."                                                                         
                                                                                                                                
CHAIR  McGUIRE  asked  whether   there  were  any  objections  to                                                               
Amendment 1.  There being none, Amendment 1 was adopted.                                                                        
                                                                                                                                
3:54:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG moved  to  report  CSSSHB 133(STA),  as                                                               
amended,  out of  committee with  individual recommendations  and                                                               
the accompanying fiscal notes.   There being no objection, CSSSHB
133(JUD)  was   reported  from   the  House   Judiciary  Standing                                                               
Committee.                                                                                                                      

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