Legislature(1997 - 1998)
02/09/1998 01:33 PM Senate CRA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SB 208 - VOTER APPROVAL OF SERVICE AREA CHANGES
CHAIRMAN MACKIE brought SB 208 before the committee as the final
order of business.
SENATOR SEAN PARNELL, prime sponsor of SB 208, said the legislation
establishes the mechanism by which service areas are created,
altered and abolished. Special services, by statute, include
services not provided on an area wide or non-area wide basis or a
higher or different level of service than that provided on an area
wide or non-area wide basis. He pointed out that throughout Alaska
there are approximately 200 service areas, and in these areas, the
local residents assess themselves to pay for a particular service.
SB 208 amends AS 29.35.450 to strengthen local control by
prohibiting a borough or municipality from altering or abolishing
service Ares without a majority vote of those people most affected.
Senator Parnell said SB 208 prescribes a majority vote mechanism
under three scenarios:
(1) When a governing body wants to abolish a service area,
the decision is subject to the approval by the majority of the
voters residing in the service area.
(2) When a governing body wants to abolish and replace a
service area with a larger service area, it must be approved
separately by a majority of voters inside the existing service
area and by a majority of the voters in the proposed service
area, but outside the existing service area.
(3) When a governing body wants to alter a service or combine
it with another service area, this action must be approved
separately by a majority of the voters who vote on the
question and who reside in each of the service areas or in a
proposed service area affected by the proposal.
Senator Parnell advised that the bills is supported by many service
area boards around the state, and he urged the committee's support
of the legislation.
Number 460
CHAIRMAN MACKIE asked for an example of the kinds of services
within a service area that would have to approved before they could
be abolished or changed. SENATOR PARNELL said the two primary
service areas around the state are road service areas and fire
service areas.
Number 488
SENATOR PHILLIPS asked Senator Parnell if this legislation was an
attempt to opt out of the present police protection. SENATOR
PARNELL responded that right now Anchorage has area wide police
cover and powers and there is nothing that can be done at this
point to change that short of a majority vote of the whole area.
His interest is the road service areas. He said his goal is to
maximize local self control and maximum self determination, while
maintaining the current number of local governmental units.
Number 528
DAN BOCKHORST, a local government specialist with the Department of
Community & Regional Affairs in Anchorage, testifying via
teleconference from Anchorage, stated the department views SB 208
as being inconsistent with four fundamental principles of local
government in Alaska. These relate to not just urban areas but
rural areas as well, and not just unified municipal governments but
other types of borough governments.
Mr. Bockhorst said Alaska's Constitution provides for maximum local
self-government with regard to both home rule and general law of
municipal governments. In the department's view, SB 208 diminishes
local self-government by imposing restrictions under state law on
the manner in which service areas may be formed, altered and
abolished. He said evidence shows that Alaska's Constitutional
Convention delegates intended that jurisdiction over service areas
was to be vested in the assembly to assure a unified overview of
all functions exercised by service areas.
Addressing the second issue, Mr. Bockhorst said Alaska's
Constitution calls for minimum numbers of local government units
and these include service areas. SB 208 limits the ability of
local governments to abolish, combine, or otherwise alter certain
service areas which in turn restricts the ability of local
governments to comply with the constitution.
Alaska's Constitution prohibits the creation of new service areas
if the desired new service can be provided by an existing service
area. This provision applies to consolidation and expansion of
service areas, not just the addition of new powers to be exercised
within existing service areas. SB 208 would restrict the ability
of local governments to apply with that constitutional provision.
The last concern relates to the provision in Alaska's Constitution
for home rule municipal governments. Alaska's provisions for
municipal home rule are broader than those of any other state, and
the Alaskans that drafted the municipal home rule provisions of the
Constitution believed that the Legislature should have the
authority to deny local exercise of specific powers when there was
an overriding state interest. They also assumed, however, that the
Legislature would not act to limit home rule powers except under
such special circumstances. Mr. Bockhorst said the department does
feel that in this case there is an overriding state interest in
this matter.
Number 553
CHAIRMAN MACKIE asked if passage of this legislation would create
any problems with the proposed Haines annexation, and MR. BOCKHORST
responded that it would not.
TAPE 98-2, SIDE B
Number 586
SENATOR PHILLIPS commented that there about 30,000 people in his
district that are mostly satisfied with the way the service area
concept is working, and their biggest fear is the Anchorage area
taking over these service areas.
SENATOR PARNELL related there are 18 road service areas in his
district and each one of them has a board. If the assembly were to
come in and assert its own road powers, it would put the residents
on a different fee structure and take it out of their hands for
controlling the costs and the quality of the road service
maintenance that is now being provided.
Number 540
CHAIRMAN MACKIE asked if by a vote of the assembly they could
automatically take over these services, or is there a mechanism in
the charter right now that would require a vote or some sort of
approval within that service area should the assembly attempt to do
that. SENATOR PARNELL responded that it was a good question, but
he didn't know the direct answer to it. SENATOR PHILLIPS added
that he thought if the assembly decided to that, it would have to
go on the ballot for an area wide vote, and that's where the
problem comes in because there aren't a sufficient amount of
numbers to stem the tide if they really want to do it. SENATOR
WILKEN concluded that the legislation before the committee would
preclude the problem Senator Phillips was talking about.
Number 522
KEVIN RITCHIE, Executive Director, Alaska Municipal League, stated
the League does not have an opinion on the legislation. He said it
is a very complex issue and the League has not had time to poll all
its members on the pros and cons of the legislation, but they hope
to have that completed soon. He added that when a home rule power
is taken away it is a very serious thing to do and it needs a lot
of consideration.
Number 505
There being no further testimony on SB 208, CHAIRMAN MACKIE asked
for the will of the committee.
SENATOR DONLEY moved that SB 208 be passed out of committee with
individual recommendations. Hearing no objection, it was so
ordered.
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