Legislature(1997 - 1998)

02/25/1998 01:35 PM Senate JUD

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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        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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