Legislature(2005 - 2006)BELTZ 211

04/04/2005 01:30 PM Senate COMMUNITY & REGIONAL AFFAIRS


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 108 WATER & SEWER UTILITIES OF POLIT. SUBDIV. TELECONFERENCED
Moved SCS CSHB 108(CRA) Out of Committee
+= SB 114 SERVICE AREAS IN SECOND CLASS BOROUGHS TELECONFERENCED
Heard & Held
Bills Previously Heard/Scheduled
+= SB 86 STATE/MUNI LIABILITY FOR ATTORNEY FEES TELECONFERENCED
Moved CSSB 86(CRA) Out of Committee
         SB 114-SERVICE AREAS IN SECOND CLASS BOROUGHS                                                                      
                                                                                                                                
2:27:50 PM                                                                                                                  
                                                                                                                                
CHAIR GARY STEVENS announced SB 114 to be up for consideration.                                                                 
                                                                                                                                
MELANIE  LESH, Staff  to Senator  Gary Stevens,  informed members                                                               
the  committee substitute  (CS)  \G version  was  adopted at  the                                                               
March 9, 2005 meeting.                                                                                                          
                                                                                                                                
MS.  LESH recapped  the  issue briefly  explaining  that a  great                                                               
number  of road  service areas  were created  when state  revenue                                                               
sharing was  distributed by  road mile.  With the  termination of                                                               
revenue   sharing,  a   number   of  road   service  areas   have                                                               
insufficient  funding to  conduct  road maintenance.  SB 114  was                                                               
introduced  to  allow  second-class boroughs  to  consolidate  or                                                               
dissolve   such  service   areas  that   are  nonfunctioning   or                                                               
functioning below  standard under AS  29. Any service  areas that                                                               
are taxing themselves  adequately to maintain safe  roads are not                                                               
affected.   Local   assemblies   would  make   consolidation   or                                                               
dissolution decisions.                                                                                                          
                                                                                                                                
CHAIR GARY  STEVENS called  a brief  at ease  from 2:29:54  PM to                                                             
2:31:18 PM                                                                                                                    
                                                                                                                                
CHAIR GARY STEVENS reconvened the  meeting and asked Ms. Logan to                                                               
give testimony.                                                                                                                 
                                                                                                                                
2:31:37 PM                                                                                                                    
                                                                                                                                
ATHENA LOGAN, Local Government Specialist  with the Department of                                                               
Commerce  Community and  Economic  Development (DCCED),  reported                                                               
that the  department endorses measures to  give local governments                                                               
flexibility to provide  an efficient delivery of  services and SB
114 does so for second-class boroughs.                                                                                          
                                                                                                                                
She  observed  that  the  bill   gives  greater  flexibility  and                                                               
authority  to second-class  boroughs than  it does  to home  rule                                                               
boroughs.  Under the  Alaska Constitution,  home rule  represents                                                               
maximum  self-governance.  State  law  doesn't  place  a  greater                                                               
restriction  on a  home rule  local  government than  it does  on                                                               
general law, local  governments, but SB 114 does  just that. This                                                               
seems contrary to  the intent of home rule  local government, she                                                               
said.                                                                                                                           
                                                                                                                                
She also  observed that there  is nothing unique about  a second-                                                               
class borough that would suggest that  the measures in SB 114 are                                                               
needed for  that particular  class of borough  but not  the other                                                               
classes of boroughs.                                                                                                            
                                                                                                                                
The  Ketchikan  Gateway Borough  is  a  second-class borough  and                                                               
under   this  bill   the  local   assembly   would  gain   needed                                                               
flexibility. However, a petition  is currently pending before the                                                               
Local Boundary Commission (LBC)  that would convert the Ketchikan                                                               
Gateway  Borough into  a home  rule  borough if  approved by  the                                                               
commission and the voters. If that  occurs and the bill passes as                                                               
currently written, the Ketchikan  Borough Assembly would lose the                                                               
flexibility accorded to second-class boroughs.                                                                                  
                                                                                                                                
MS. LOGAN reiterated the department  endorses measures that would                                                               
give  borough government  flexibility needed  to provide  for the                                                               
efficient  delivery of  services, but  SB  114 does  so only  for                                                               
second-class boroughs.                                                                                                          
                                                                                                                                
She noted  members had copies  of a  March 9, 2005  legal opinion                                                               
from  Marjorie  Vandor,  Assistant Attorney  General,  supporting                                                               
DCCED's understanding of the bill.                                                                                              
                                                                                                                                
2:33:46 PM                                                                                                                    
                                                                                                                                
CHAIR GARY  STEVENS asked  Ms. Broker to  respond to  Ms. Logan's                                                               
comments regarding second-class and home rule boroughs.                                                                         
                                                                                                                                
RENE  BROKER,  Attorney  for the  Fairbanks  North  Star  Borough                                                               
replied  SB  114  addresses  a  problem  that  only  second-class                                                               
boroughs  face.  Home rule  boroughs  do  have more  powers  than                                                               
second-class  boroughs,   but  with  more  power   comes  greater                                                               
flexibility and  ability to deal with  problems that second-class                                                               
boroughs  don't  have.  Second-class  boroughs  don't  have  road                                                               
powers  in  particular so  they  can  only exercise  road  powers                                                               
through service areas so second-class  boroughs have an issue and                                                               
problem that home rule municipalities aren't experiencing.                                                                      
                                                                                                                                
2:35:12 PM                                                                                                                    
                                                                                                                                
CHAIR GARY  STEVENS said  the issue might  take more  thought and                                                               
announced he would hold SB 114 in committee.                                                                                    

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