Legislature(2023 - 2024)BARNES 124
03/19/2024 08:00 AM House COMMUNITY & REGIONAL AFFAIRS
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| HB347 | |
| HB151 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 151 | TELECONFERENCED | |
| += | HB 347 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE
March 19, 2024
8:02 a.m.
MEMBERS PRESENT
Representative CJ McCormick, Chair
Representative Kevin McCabe, Vice Chair
Representative Tom McKay
Representative Thomas Baker
Representative Justin Ruffridge
Representative Rebecca Himschoot
Representative Donna Mears
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
HOUSE BILL NO. 347
"An Act relating to assessment of property, boards of
equalization, and certification of assessors; and providing for
an effective date."
- MOVED CSHB 347(CRA) OUT OF COMMITTEE
HOUSE BILL NO. 151
"An Act relating to proposals for borough incorporation
submitted to the legislature by the Local Boundary Commission."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 347
SHORT TITLE: PROPERTY ASSESSMENT
SPONSOR(s): REPRESENTATIVE(s) COULOMBE
02/20/24 (H) READ THE FIRST TIME - REFERRALS
02/20/24 (H) CRA
03/12/24 (H) CRA AT 8:00 AM BARNES 124
03/12/24 (H) Heard & Held
03/12/24 (H) MINUTE(CRA)
03/14/24 (H) CRA AT 8:00 AM BARNES 124
03/14/24 (H) Heard & Held
03/14/24 (H) MINUTE(CRA)
03/19/24 (H) CRA AT 8:00 AM BARNES 124
BILL: HB 151
SHORT TITLE: FORMATION OF BOROUGHS
SPONSOR(s): REPRESENTATIVE(s) CRONK
04/03/23 (H) READ THE FIRST TIME - REFERRALS
04/03/23 (H) CRA
03/14/24 (H) CRA AT 8:00 AM BARNES 124
03/14/24 (H) Heard & Held
03/14/24 (H) MINUTE(CRA)
03/19/24 (H) CRA AT 8:00 AM BARNES 124
WITNESS REGISTER
JULIE COULOMBE
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, gave an overview of the
proposed CS for HB 357, Version B.
SANDRA MOLLER, Director
Division of Community & Regional Affairs
Department of Commerce, Community, & Economic Development
Deltana, Alaska
POSITION STATEMENT: Gave a brief statement on HB 347; gave a
brief statement on HB 151.
DAVE STANCLIFF, Staff
Representative Mike Cronk
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Offered introductory remarks on HB 151, on
behalf of Representative Cronk, prime sponsor.
REPRESENTATIVE MIKE CRONK
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, offered comments on HB
151.
JAMES SQUYRES, representing self
Deltana, Alaska
POSITION STATEMENT: Testified in support of HB 151.
LARRY WOOD, Chair
Local Boundary Commission
Eagle River, Alaska
POSITION STATEMENT: Testified during the hearing on HB 151.
RODNEY DIAL, Mayor
Ketchikan Gateway Borough
Ketchikan, Alaska
POSITION STATEMENT: Testified during the hearing on HB 151.
JOHN HARRINGTON, Vice Chair
Local Boundary Commission
Ketchikan, Alaska
POSITION STATEMENT: Testified during the hearing on HB 151.
ED MARTIN, representing self
Kenai, Alaska
POSITION STATEMENT: Testified in opposition to HB 151.
CLAY WALKER
Local Boundary Commission
Denali Park, Alaska
POSITION STATEMENT: Testified during the hearing on HB 151.
ACTION NARRATIVE
8:02:28 AM
CHAIR MCCORMICK called the House Community and Regional Affairs
Standing Committee meeting to order at 8:02 a.m.
Representatives McKay, Baker, Ruffridge, Mears, McCabe, and
McCormick were present at the call to order. Representative
Himschoot arrived as the meeting was in progress.
HB 347-PROPERTY ASSESSMENT
8:03:33 AM
CHAIR MCCORMICK announced that the first order of business would
be HOUSE BILL NO. 347, "An Act relating to assessment of
property, boards of equalization, and certification of
assessors; and providing for an effective date." [Before the
committee, adopted as the working document on 3/12/24, was the
proposed committee substitute (CS) for HB 347, Version 33-
LS1430\B, Dunmire, 3/8/24 ("Version B").]
8:03:57 AM
JULIE COULOMBE, Alaska State Legislature, prime sponsor, stated
that the bill would help communities by providing a path of
fairness and transparency around property assessment by setting
standards, ensuring that assessors have proper experience and
certification, and giving property owners a fair shake in
challenging their assessments.
8:04:42 AM
CHAIR MCCORMICK invited Ms. Moller to speak to the bill.
8:05:03 AM
SANDRA MOLLER, Director, Division of Community & Regional
Affairs, Department of Commerce, Community, & Economic
Development (DCCED), noted that the bill would affect local
assessors, not the state assessor. She made herself available
for questions.
8:06:17 AM
CHAIR MCCORMICK moved to adopt Amendment 1 to Version B, labeled
33-LS1430\B.1, Dunmire, 3/18/24, which read:
Page 2, following line 9:
Insert a new bill section to read:
"* Sec. 4. AS 29.45.180(a) is amended to read:
(a) A person receiving an assessment notice
shall advise the assessor of errors or omissions in
the assessment of the person's property. If requested
by the person, the assessor shall meet with the person
and answer reasonable questions relating to the
methods used to assess the person's property. The
assessor may correct errors or omissions in the roll
before the board of equalization hearing."
Renumber the following bill sections accordingly.
Page 3, line 3:
Delete "Section 6"
Insert "Section 7"
Page 3, line 4:
Delete "sec. 7"
Insert "sec. 8"
REPRESENTATIVE MCCABE objected.
8:06:54 AM
REPRESENTATIVE COULOMBE explained that Amendment 1 would provide
an opportunity for the assessor and taxpayer to resolve a
dispute before bringing it to the Board of Equalization.
REPRESENTATIVE MCCABE said he appreciated Amendment 1 and hoped
that it would be seen in the spirit in which it is intended,
which is to allow the assessor's office to be servants of the
people.
8:08:36 AM
REPRESENTATIVE MCCABE removed his objection. There being no
further objection, Amendment 1 was adopted.
8:08:50 AM
REPRESENTATIVE RUFFRIDGE said he would not be offering Amendment
2 or Amendment 3 at this time.
8:09:27 AM
REPRESENTATIVE MCCABE moved to report CSHB 347, Version 33-
LS1430\B, Dunmire, 3/8/24, as amended, out of committee with
individual recommendations and the accompanying fiscal notes.
There being no objection, CSHB 347(CRA) was reported from the
House Community and Regional Affairs Standing Committee.
8:09:58 AM
The committee took an at-ease from 8:09 a.m. to 8:14 a.m.
HB 151-FORMATION OF BOROUGHS
8:14:48 AM
CHAIR MCCORMICK announced that the final order of business would
be HOUSE BILL NO. 151, "An Act relating to proposals for borough
incorporation submitted to the legislature by the Local Boundary
Commission."
8:15:10 AM
DAVE STANCLIFF, Staff, Representative Mike Cronk, Alaska State
Legislature, on behalf of Representative Cronk, prime sponsor of
HB 151, stated that the bill sponsor had been working with
Legislative Legal Services ("legislative legal") and other
legislators to determine how best to expand the public's role in
the government process of borough formation.
8:15:57 AM
CHAIR MCCORMICK invited Ms. Moller to speak to the bill.
MS. MOLLER offered comments not related to the bill.
8:19:13 AM
REPRESENTATIVE MIKE CRONK, Alaska State Legislature, prime
sponsor, clarified that Ms. Moller was speaking to HB 279, not
HB 151.
8:19:34 AM
MS. MOLLER apologized for speaking to the wrong bill. She
sought clarity on how the local boundary commission (LBC) would
determine whether a majority of citizens of voting age support
the formation of a borough.
8:22:47 AM
CHAIR MCCORMICK opened public testimony on HB 151.
8:23:34 AM
JAMES SQUYRES, representing self, testified in support of HB
151. He stated that the bill would attempt to ensure that LBC
commissioners uphold Article 10, Section 12, with Article 1,
Section 2 [of the Alaska Constitution], before submitting a
legislative review proposal, which he applauded. He proceeded
to respond to several metrics offered by the LBC chair in his
written testimony expressing opposition to HB 151. He asserted
that in violation of the Open Meetings Act, the process by which
the LBC touts to follow was violated in the vote to oppose HB
151. He stated that the bill was an opportunity to direct and
guide the LBC in creating regulations that would balance
commissioners in fulfilling their oath to support and defend the
constitution.
8:27:16 AM
LARRY WOOD, Chair, Local Boundary Commission (LBC), testified
during the hearing on HB 151. In response to Mr. Squyres, he
said he had an explanation for the actions that took place at
the LBC meeting last week and requested an extra five minutes to
testify.
8:28:19 AM
The committee took a brief at-ease.
8:29:33 AM
CHAIR MCCORMICK advised Mr. Wood to adhere to the three-minute
time limit.
8:30:20 AM
MR. WOOD noted that he sent biographical information about the
commission's members who act in a quasi-judicial role to fairly
analyze questions regarding, in this case, borough formation.
He shared a brief overview of his personal and professional
background. He opined that HB 151 would change the way the
Alaska Constitution prescribes borough formation in Alaska.
Furthermore, he shared his belief that [the committee] was
moving too fast. He pointed out that the mechanism described in
statute for presenting a legislative proposal for borough
formation had never been used. In conclusion, he stated that
there was a "full public process" in current practice.
8:36:00 AM
REPRESENTATIVE MEARS said she would appreciate hearing more from
Mr. Wood at a later time.
REPRESENTATIVE HIMSCHOOT said after reading "Alaska's
Constitution, A Citizen's Guide" by Gordon Harrison and speaking
with legislative legal, there may be a broad misunderstanding of
the section allowing the commission or board to consider a
proposed local government boundary change. She explained that
contrary to common perception, this section may not be used to
form a borough.
8:37:31 AM
RODNEY DIAL, Mayor, Ketchikan Gateway Borough, testified during
the hearing on HB 151. He shared that the Ketchikan Gateway
Borough had expressed concern about the disparate treatment
imposed by the state regarding unorganized and organized
boroughs, specifically as it relates to the broad-based, local
contribution tax that is imposed only on citizens living inside
the organized boroughs. He asserted the citizens of Ketchikan
and eight other regional areas are not afforded the same
protections as those proposed in HB 151, and were forced by the
legislature to establish as boroughs under the Mandatory Borough
Act of 1963. He cited a 1981 study into Alaska's local
government model that concluded "the present system encourages
dependence and that the inhabitants of the unorganized borough
are encouraged to be supplicants and clients of state provided
services and largely spectators upon the political life of local
government." He pointed out that many communities in the state,
such as Prince of Wales Island, have a tax base sufficient to
contribute to the common good, but choose not to, to avoid
paying the required local contribution tax. He opined that the
bill would not support the sustainability of the state budget
and recommended that the legislature find ways to encourage
borough formation, not discourage it.
8:41:34 AM
REPRESENTATIVE HIMSCHOOT asked where she could find the 1981
study referenced by Mr. Dial.
MR. DIAL said the study came from a presentation by the Alaska
Municipal League (AML) that was previously provided to the
legislature.
8:42:26 AM
JOHN HARRINGTON, Vice Chair, Local Boundary Commission,
testified during the hearing on HB 151. He questioned the
bill's constitutionality and characterized the proposal as a
"solution in search of a problem." He acknowledged the
"legislative obstacles" to borough formation and commented on
his participation in two recent boundary formations Petersburg
and Wrangell which were both formed by local action. He
opined that the proposed legislation required further work.
8:46:10 AM
REPRESENTATIVE RUFFRIDGE asked whether Mr. Harrington believed
that status quo was "doing just fine."
MR. HARRINGTON answered no; however, he opined that the status
quo is the only way forward without removing obstacles to
borough formation through legislative action. Otherwise, he
suspected that the only future action would be first class
cities seeking borough formation.
8:47:38 AM
ED MARTIN, representing self, testified in opposition to HB 151.
He opined that the creation of any government over a boundary
area of individuals should "fear the people," adding that no
boundary commission or politically appointed body should have
complete control over the desires of the citizens within those
areas. He said he sympathized with the numerous unorganized
boroughs that don't contribute to possible schools, and shared
his belief that the state should do something about that. He
opined that the bill would not address "we the people" and
suggested that the committee hold the bill for further
consideration and research.
8:50:29 AM
CLAY WALKER, Local Boundary Commission (LBC), testified during
the hearing on HB 151. He discussed what he perceived to be
"unmeetable hurtles" to borough formation proposed in HB 151,
including the provision outlining the legislative review rout
and the methodology for determining the majority of residents of
voting age. He encouraged the committee to table the bill and
address these important issues.
8:53:13 AM
CHAIR MCCORMICK closed public testimony on HB 151 and sought
questions from committee members.
8:54:37 AM
REPRESENTATIVE HIMSCHOOT explained that after doing a deep dive
on the bill, there may be broad misconception of what Article
10, Section 12 of the Alaska Constitution does, reiterating that
it may not be a pathway to borough formation. She read the
following excerpt from "Alaska's Constitution, A Citizen's
Guide" by Gordon Harrison [original punctuation provided]:
The term "boundary change" used in this section refers
to changes in established boundaries such as through
annexation and detachment, not to the creation of new
cities and boroughs through incorporation. Although
the local boundary commission plays a key role in new
incorporations and unifications, it does so through
authority conferred on it by the legislature under
Sections 3 and 7 of this article (which say that
cities and boroughs may be incorporated, merged,
consolidated, classified, or dissolved in the manner
provided by law). The legislature has said that the
local boundary commission may not consider the
creation of a new borough under this section (AS 29.
05.115).
8:58:00 AM
MR. STANCLIFF remarked, "This is an amazing revelation." One
solution, he said, would be to repeal this section entirely, as
it does not allow for enough public process and had not been
used in 60 years.
REPRESENTATIVE RUFFRIDGE echoed the sentiment shared by Mr.
Stancliff and encouraged a deeper dive into the legislative
history [of borough formation].
9:00:50 AM
REPRESENTATIVE MCCABE contended that borough formation is
addressed in Article 10, Section 3 of the Alaska Constitution,
not Section 12.
REPRESENTATIVE HIMSCHOOT clarified that boundaries are addressed
in Section 12. She questioned whether Section 12 fulfills the
mission of Section 3, and whether [AS 29.05.115(a)] would best
be repealed as a result of the conflict identified between
Section 12 and Section 3.
9:03:24 AM
MR. STANCLIFF said it was hard to discern the legislative intent
from the legislative record pertaining to the creation of the
LBC. He agreed with Representative Himschoot's suggestion to
"go back and stay with the public process, which is in
continuity with what was intended originally."
9:05:07 AM
MS. MOLLER concurred that the issue required more time. She
reported that there was a local option petition that failed by a
vote of 129 to 1242 in Representative Cronk's district.
REPRESENTATIVE HIMSCHOOT read the following excerpt from
"Alaska's Constitution, A Citizen's Guide" by Gordon Harrison
pertaining to Section 3 of the constitution [original
punctuation provided]:
The legislature may mandate the creation of boroughs,
and citizens may voluntarily petition to create
boroughs. Statutory standards for borough
incorporation are similar to, and little more specific
than, the constitutional standards set out here (see
AS 29.05.031). This flexibility has allowed boroughs
to vary widely in size and population. Local petitions
to create a borough are made to the local boundary
commission created in Section 12 below. (The
commission may not create boroughs on its own
initiative.) Initially, the legislature provided for
three classes of boroughs, but now only first-class
and second-class boroughs are authorized.
9:07:35 AM
REPRESENTATIVE CRONK in closing, thanked the committee for the
dialogue and said he looked forward to a deeper dive into this
issue.
9:07:50 AM
CHAIR MCCORMICK announced that HB 151 would be held over.
9:08:38 AM
ADJOURNMENT
There being no further business before the committee, the House
Community and Regional Affairs Standing Committee meeting was
adjourned at 9:08 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 151 Fiscal Note 3.19.24.pdf |
HCRA 3/19/2024 8:00:00 AM |
HB 151 |
| HB 151 Sect. 3.19.24.pdf |
HCRA 3/19/2024 8:00:00 AM |
HB 151 |
| HB 151 Sponsor Statement 3.19.24.pdf |
HCRA 3/19/2024 8:00:00 AM |
HB 151 |
| HB 151 Version B 3.19.24.pdf |
HCRA 3/19/2024 8:00:00 AM |
HB 151 |
| HB 151 Letter of Opposition - Local Boundary Commission Concerns 3.15.24.pdf |
HCRA 3/19/2024 8:00:00 AM |
HB 151 |
| CSHB347 Amendment #1 3.19.24.pdf |
HCRA 3/19/2024 8:00:00 AM |
HB 347 |
| CSHB347 Amendment #2 3.19.24.pdf |
HCRA 3/19/2024 8:00:00 AM |
HB 347 |
| CSHB347 Amendment #3 3.19.24.pdf |
HCRA 3/19/2024 8:00:00 AM |
HB 347 |
| HB 347 Fiscal Note 3.12.24.pdf |
HCRA 3/19/2024 8:00:00 AM |
HB 347 |
| HB 347 Public Testimony 3.18.24.pdf |
HCRA 3/19/2024 8:00:00 AM |
HB 347 |
| HB 347 Sectional Analysis (CR&A) 3.18.24.pdf |
HCRA 3/19/2024 8:00:00 AM |
HB 347 |
| HB 347 Sponsor Statement (CR&A) 3.18.24.pdf |
HCRA 3/19/2024 8:00:00 AM |
HB 347 |
| HB0347A.pdf |
HCRA 3/19/2024 8:00:00 AM |
HB 347 |
| HB 151 Letter of Support 3.19.24.pdf |
HCRA 3/19/2024 8:00:00 AM |
HB 151 |