Legislature(2005 - 2006)BUTROVICH 205

05/02/2006 03:30 PM Senate STATE AFFAIRS


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03:36:12 PM Start
03:37:31 PM Confirmation Hearing - Claire Hall, Commissioner - Apoc
03:39:34 PM HB300
03:45:46 PM HB133
04:22:31 PM HB399
04:38:05 PM Confirmation – Scott Nordstrand, Commissioner, Department of Administration
04:38:41 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 288 SEPTEMBER AS EDUCATION SAVINGS MONTH TELECONFERENCED
Scheduled But Not Heard
+= HB 347 MOTOR VEHICLE INSURANCE/LICENSE/ NOTICES TELECONFERENCED
Scheduled But Not Heard
+= HB 399 ELDER FRAUD AND ASSISTANCE/OPA TELECONFERENCED
Moved SCS CSHB 399(STA) Out of Committee
+= HJR 25 SUPPORTING VETERANS HOME OWNERSHIP ACT TELECONFERENCED
Scheduled But Not Heard
+ HB 133 MUNICIPAL BOUNDARY CHANGES/ COMMISSION TELECONFERENCED
Moved SCS CSSSHB 133(STA) Out Committee
+ Confirmation Hearing: TELECONFERENCED
Claire Hall, Commissioner -- APOC
+ Bills Previously Heard/Scheduled TELECONFERENCED
= HB 300 OIL & GAS CONSERVATION COMMISSION MEMBER
Moved CSHB 300(O&G) Out of Committee
   CSSSHB 133(JUD) AM-MUNICIPAL BOUNDARY CHANGES/ COMMISSION                                                                
                                                                                                                              
3:45:46 PM                                                                                                                    
CHAIR THERRIAULT announced HB 133 to be up for consideration.                                                                   
                                                                                                                                
REPRESENTATIVE JOHN  COGHILL, sponsor  of HB 133,  explained that                                                               
the bill  proposes changes to  procedures for the  Local Boundary                                                               
Commission  (LBC). It  would change  the LBC  ability to  propose                                                               
petitions, amend  petitions, deal  with incorporations,  and take                                                               
public testimony.                                                                                                               
                                                                                                                                
Section  1 requires  that the  LBC provide  public notice  before                                                               
amending a petition so that the public is included.                                                                             
                                                                                                                                
Section 2 calls for two  public hearings for incorporation rather                                                               
than just one.                                                                                                                  
                                                                                                                                
Section  3  deals with  the  ability  for  people  to vote  on  a                                                               
proposed  annexation.  A  current   LBC  regulation  mandates  an                                                               
aggregate  vote on  proposed annexations  and this  change is  to                                                               
protect those in  the proposed annexing area.  As proposed, there                                                               
would be a vote  in the municipal area that wants  to annex and a                                                               
vote in  the area  that is proposed  for annexation.  This change                                                               
encourages public dialogue, he asserted.                                                                                        
                                                                                                                                
Section  4 relates  to LBC  regulations and  the need  for accord                                                               
with  Title 29,  which asserts  legislative authority  and forces                                                               
participation in the dialogue.                                                                                                  
                                                                                                                                
REPRESENTATIVE  COGHILL  mentioned  that   he  had  an  amendment                                                               
relating to detachments.                                                                                                        
                                                                                                                                
3:52:01 PM                                                                                                                    
SENATOR KIM ELTON  posed a hypothetical situation  related to the                                                               
Greens Creek  annexation by  the City and  Borough of  Juneau. If                                                               
just two  voters resided in  the Greens  Creek area, he  asked if                                                               
one of the  two voters could have stopped  the annexation process                                                               
under proposed Section 3.                                                                                                       
                                                                                                                                
REPRESENTATIVE  COGHILL acknowledged  that property  owners would                                                               
have to agree on the annexation.                                                                                                
                                                                                                                                
SENATOR ELTON commented that one  public hearing might suffice in                                                               
an area that has just two voters  and asked if there isn't a need                                                               
for an "escape hatch" to avoid such a scenario.                                                                                 
                                                                                                                                
REPRESENTATIVE  COGHILL  replied he  would  need  to ponder  that                                                               
circumstance.                                                                                                                   
                                                                                                                                
SENATOR ELTON suggested that the  problem comes from the wording.                                                               
He  questioned whether  a property  owner would  qualify to  vote                                                               
without being a resident of the area.                                                                                           
                                                                                                                                
CHAIR  THERRIAULT pointed  out that  property  ownership isn't  a                                                               
qualification for voting in an area.                                                                                            
                                                                                                                                
SENATOR ELTON asked  if a majority vote in both  the annexing and                                                               
the annexed areas would be required for detachments.                                                                            
                                                                                                                                
REPRESENTATIVE  COGHILL said  yes.  Obviously it  could be  quite                                                               
contentious,  which   is  why   he  didn't   address  detachments                                                               
initially.  However, if  the voters  residing in  an area  aren't                                                               
able to choose the form  of government, he would question whether                                                               
they are well served.                                                                                                           
                                                                                                                                
3:59:38 PM                                                                                                                    
MARK  HICKEY,  Lobbyist  for  the  Lake  and  Peninsula  Borough,                                                               
testified in support  of HB 133. Providing background  on the two                                                               
methods  that   the  LBC  has   to  deal  with   annexations  and                                                               
detachments,  he explained  that  Section 2  is  current law  and                                                               
deals  with local  action. The  alternative  method provides  for                                                               
legislative  review  and  requires  legislative  action  to  deny                                                               
within 45 days.                                                                                                                 
                                                                                                                                
Local action  is addressed in  Section 3  and is a  scenario that                                                               
the Lake and  Peninsula Borough has faced  several times. Without                                                               
the  change proposed  in Section  1, Lake  and Peninsula  Borough                                                               
residents could face  a hostile takeover and  have no opportunity                                                               
to vote on the issue. Under  Section 1 voters in both areas would                                                               
have to affirm the action.                                                                                                      
                                                                                                                                
Addressing  Senator Elton's  question, he  said it's  complicated                                                               
but there  is a legislative review  component to the LBC  that is                                                               
provided for  in the Alaska  State Constitution and  the proposed                                                               
change in Section 3 doesn't eliminate that.                                                                                     
                                                                                                                                
4:03:34 PM                                                                                                                    
SENATOR HUGGINS asked for an interpretation of page 2, line 21.                                                                 
                                                                                                                                
MR. HICKEY replied that is  existing law and his understanding is                                                               
that  a municipality  may request  a boundary  change to  include                                                               
adjacent property that it owns.                                                                                                 
                                                                                                                                
SENATOR HUGGINS asked if that creates  a problem for the areas he                                                               
represents.                                                                                                                     
                                                                                                                                
MR. HICKEY said no.                                                                                                             
                                                                                                                                
CHAIR  THERRIAULT asked  if he  has  an opinion  on the  proposed                                                               
amendment relating to detachments on page 2, line 16.                                                                           
                                                                                                                                
MR. HICKEY offered the view that the amendment makes sense.                                                                     
                                                                                                                                
4:07:04 PM                                                                                                                    
JOHN HOZEY,  City Manager for  the City of Valdez,  suggested the                                                               
following amendment to Title 29.05.031:                                                                                         
                                                                                                                                
     In setting boundaries of a  proposed borough or unified                                                                    
     municipality,   consideration   shall   be   given   to                                                                    
     assisting  administrative or  corporate boundaries  and                                                                    
     to  drainage   basins  or  other   regional  geographic                                                                    
     features. Such corporate  and administrative boundaries                                                                    
     may be  considered, however such boundaries  may not be                                                                    
     entitled  to any  presumption in  the determination  of                                                                    
     appropriate  boundaries under  subsection  (a) of  this                                                                    
     section.                                                                                                                   
                                                                                                                                
MR. HOZEY explained  that the amendment deals with  the fact that                                                               
inordinate weight is assigned to the model borough boundaries.                                                                  
                                                                                                                                
CHAIR  THERRIAULT  asked the  sponsor  if  he had  discussed  the                                                               
proposed amendment with Mr. Hozey.                                                                                              
                                                                                                                                
REPRESENTATIVE COGHILL  said yes  and although the  suggestion is                                                               
good it is beyond the scope of the bill at this point.                                                                          
                                                                                                                                
4:11:24 PM                                                                                                                    
DAN BOCKHORST,  Staff to the  Local Boundary  Commission, advised                                                               
that he  was available  to answer  technical questions.  He noted                                                               
the  Chair Hargraves  had  provided a  written  statement to  the                                                               
committee.                                                                                                                      
                                                                                                                                
CHAIR  THERRIAULT asked  if any  issues that  were raised  needed                                                               
clarification.                                                                                                                  
                                                                                                                                
MR.    BOCKHORST   suggested    that    there   is    significant                                                               
misunderstanding related to the  model borough boundaries and how                                                               
they were created.  He asked that the record reflect  that he did                                                               
not  agree with  the characterization  that inordinate  weight is                                                               
given to the model boundaries and  that it has been an impediment                                                               
to borough formation.                                                                                                           
                                                                                                                                
Calling  Senator Elton's  suggestion  relating to  the number  of                                                               
public  hearings  practical, he  clarified  that  his reading  of                                                               
Section  2 is  that it  only applies  in the  event that  the LBC                                                               
submits  a  borough  incorporation petition  to  the  Legislature                                                               
under  the  terms  of  Article   X,  Section  12.  Therefore  the                                                               
hypothetical  situation for  the Green's  Creek annexation  would                                                               
not have applied.                                                                                                               
                                                                                                                                
4:15:00 PM                                                                                                                    
CHAIR THERRIAULT asked  if he would comment on  the suggestion to                                                               
add the word "detachment" on page 2, line 16.                                                                                   
                                                                                                                                
MR. BOCKHORST replied the commission has no objection.                                                                          
                                                                                                                                
CHAIR THERRIAULT  moved conceptual Amendment  1 on behalf  of the                                                               
sponsor to  include detachments. Offering a  conceptual amendment                                                               
would  provide the  drafters the  ability  to provide  conforming                                                               
language.                                                                                                                       
                                                                                                                                
SENATOR  ELTON objected  to  ask whether  the  LBC suggested  the                                                               
language.                                                                                                                       
                                                                                                                                
REPRESENTATIVE COGHILL  replied Mr.  Hargraves brought it  up and                                                               
it would provide consistency.                                                                                                   
                                                                                                                                
SENATOR  ELTON agreed  that consistency  is  good, but  suggested                                                               
that this  would create  a very high  threshold for  a detachment                                                               
because it would remove property from the tax base.                                                                             
                                                                                                                                
CHAIR THERRIAULT  offered the counter  argument that  there could                                                               
be property  tax value but  delivery of services is  difficult to                                                               
cover with the amount that is raised from the property tax.                                                                     
                                                                                                                                
SENATOR ELTON maintained his objection to Amendment 1.                                                                          
                                                                                                                                
CHAIR  THERRIAULT   asked  for  a  roll   call  vote.  Conceptual                                                               
Amendment  1  passed with  Senators  Wagoner,  Huggins and  Chair                                                               
Therriault voting yea and Senator Elton voting nay.                                                                             
                                                                                                                                
CHAIR THERRIAULT  noted that  Legislative Finance  has determined                                                               
it's possible to  zero the fiscal note and he  would like to vote                                                               
on that action separate from the bill.                                                                                          
                                                                                                                                
He asked for the will of the committee.                                                                                         
                                                                                                                                
Wagoner  motioned to  report SCS  CSSSHB 133(STA)  from committee                                                               
with  individual recommendations.  There being  no objection,  it                                                               
was so ordered.                                                                                                                 
                                                                                                                                
CHAIR THERRIAULT  informed the sponsor  that the  amendment would                                                               
trigger a title change.                                                                                                         
                                                                                                                                
CHAIR THERRIAULT asked for a motion on a zero fiscal note.                                                                      
                                                                                                                                
SENATOR  WAGONER moved  that a  zero fiscal  note for  SCS CSSSHB
133(STA) be prepared and forwarded  from committee with the bill.                                                               
There being no objection, the motion carried.                                                                                   

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