03/19/2024 01:30 PM Senate COMMUNITY & REGIONAL AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| HB279 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 279 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
SENATE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE
March 19, 2024
1:32 p.m.
MEMBERS PRESENT
Senator Forrest Dunbar, Chair
Senator Donald Olson, Vice Chair
Senator Elvi Gray-Jackson
Senator Jesse Bjorkman
Senator Cathy Giessel
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 279(CRA) AM
"An Act relating to the Local Boundary Commission; and providing
for an effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 279
SHORT TITLE: LOCAL BOUNDARY COMMISSION
SPONSOR(s): REPRESENTATIVE(s) CRONK
01/18/24 (H) READ THE FIRST TIME - REFERRALS
01/18/24 (H) CRA
01/30/24 (H) CRA AT 8:00 AM BARNES 124
01/30/24 (H) Heard & Held
01/30/24 (H) MINUTE(CRA)
02/13/24 (H) CRA AT 8:00 AM BARNES 124
02/13/24 (H) Heard & Held
02/13/24 (H) MINUTE(CRA)
02/20/24 (H) CRA AT 8:00 AM BARNES 124
02/20/24 (H) -- MEETING CANCELED --
02/22/24 (H) CRA AT 8:00 AM BARNES 124
02/22/24 (H) Moved CSHB 279(CRA) Out of Committee
02/22/24 (H) MINUTE(CRA)
02/23/24 (H) CRA RPT CS(CRA) 3DP 3NR
02/23/24 (H) DP: BAKER, HIMSCHOOT, RUFFRIDGE
02/23/24 (H) NR: MEARS, MCCABE, MCCORMICK
03/08/24 (H) TECHNICAL SESSION 3/8 - ON 3/11
CALENDAR
03/11/24 (H) TRANSMITTED TO (S)
03/11/24 (H) VERSION: CSHB 279(CRA) AM
03/12/24 (S) READ THE FIRST TIME - REFERRALS
03/12/24 (S) CRA
03/19/24 (S) CRA AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
REPRESENTATIVE MIKE CRONK, District 36
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of HB 279.
DAVE STANCLIFF, Staff
Representative Mike Cronk
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented the sectional analysis for HB 279
on behalf of the sponsor.
LARRY WOOD, Chair
Alaska Local Boundary Commission (LBC)
Eagle River, Alaska
POSITION STATEMENT: Testified in opposition to HB 279,
referencing an LBC position paper dated March 12, 2024.
JAMES SQUYRES, representing self
Deltana, Alaska
POSITION STATEMENT: Testified in support of HB 279.
CLAY WALKER, Member
Local Boundary Commission
Healy, Alaska
POSITION STATEMENT: Testified HB 279 should be tabled.
SANDRA MOLLER, Director
Division of Community and Regional Affairs
Department of Commerce, Community and
Economic Development (DCCED)
Anchorage, Alaska
POSITION STATEMENT: Answered questions during the discussion of
HB 279.
ACTION NARRATIVE
1:32:32 PM
CHAIR FORREST DUNBAR called the Senate Community and Regional
Affairs Standing Committee meeting to order at 1:32 p.m. Present
at the call to order were Senators Gray-Jackson, Olson, and
Chair Dunbar. Senators Giessel and Bjorkman arrived shortly
thereafter.
HB 279-LOCAL BOUNDARY COMMISSION
1:33:02 PM
CHAIR DUNBAR announced the consideration of CS FOR HOUSE BILL
NO. 279(CRA) am "An Act relating to the Local Boundary
Commission; and providing for an effective date."
He said Representative Cronk will deliver a brief introduction
of HB 279, his staff will present the sectional analysis, and
open public testimony on the bill. He invited Representative
Cronk and Mr. Stancliff to put themselves on the record and
begin their testimony.
1:33:40 PM
REPRESENTATIVE MIKE CRONK, District 36, Alaska State
Legislature, Juneau, Alaska, sponsor of HB 279 explained that HB
279 originated from a constituent's concern about unorganized
boroughs lacking representation on the Local Boundary Commission
(LBC). He and his staff investigated the issue and developed HB
279 to ensure commissioners from the four judicial districts
reside and vote in the districts they represent and that at
least one commissioner is from an unorganized borough. He noted
HB 279 includes an effective date ensuring the current LBC
composition remains unchanged until a seat becomes vacant.
1:35:04 PM
SENATOR OLSON asked if this legislation was brought forward due
to a lack of variety within the four judicial districts.
CRONK replied that is correct. The constituent voiced concern
that there was not fair representation from the unorganized
borough.
SENATOR OLSON commented that is a fair reason to voice concern.
1:35:36 PM
DAVE STANCLIFF, Staff, Representative Mike Cronk, Alaska State
Legislature, Juneau, Alaska, presented the sectional analysis
for HB 279 on behalf of the sponsor.
Section 1. AS 44.33.810 is amended.
Page 1, Lines: 10-12
Establishes that at least one of the five Local
Boundary commissioners appointed reside in the
Unorganized Borough.
Requires a commissioner appointed from a Judicial
District to be domiciled and registered to vote in
that District.
The LBC chair is to be elected by Commission members.
Section 2.
Establishes an effective date clause to coincide with
the next open seat on the commission. January 31,
2025.
MR STANCLIFF explained HB 279 proposes that the Commission
members elect the LBC chair, a change from a political
appointment by the governor.
1:36:24 PM
CHAIR DUNBAR asked a clarifying question regarding HB 279,
noting that while it requires at least one member to be from the
unorganized borough, representatives from the four judicial
districts can already be from the unorganized borough. He sought
confirmation that the bill changes the at-large seat to
specifically designate it as an unorganized borough seat.
MR. STANCLIFF replied that is correct. He emphasized that the
primary purpose of HB 279 is to ensure the perspectives of the
rural areas of the state, the unorganized borough, have at least
one of the five seats on the Local Boundary Commission.
1:37:10 PM
CHAIR DUNBAR clarified that the distinction lies in the previous
structure, which included four seats from the judicial districts
and one at-large seat. He noted that HB 279 does not require one
of the judicial district seats to be from the unorganized
borough but instead designates the at-large seat as the
unorganized borough seat.
1:37:30 PM
MR. STANCLIFF replied yes, the legislation simply says one
person shall be from the unorganized district, in effect giving
the at-large seat to the unorganized borough.
1:37:45 PM
SENATOR GRAY-JACKSON sought confirmation that HB 279 allows the
governor to name any commissioner as chair.
MR. STANCLIFF explained that currently, five individuals are
appointed to the Local Boundary Commissionone from each of the
four judicial districts and one at-large member, with the
governor selecting the at-large member to serve as chair. He
noted that an amendment passed on the House floor allows the
commission to elect its own chair, rather than the governor
appointing the chair. This change was suggested to favor the
public and reduce political influence.
SENATOR GRAY-JACKSON expressed appreciation for the response but
said HB 279, Section 1, allows "the governor to name any
commissioner appointed as chair." She sought confirmation that
the HB 279 does not permit the governor to appoint the chair but
instead give authority to the board.
MR. STANCLIFF replied yes.
SENATOR GRAY-JACKSON responded that is really good.
MR. STANCLIFF said HB 279 [version B], [page 1], line 12, says,
"The commission shall select a chair from among its members."
SENATOR GRAY-JACKSON said she was confused by the sectional
analysis.
1:39:35 PM
CHAIR DUNBAR said the sectional analysis might predate the
amendment and confirmed that HB 279 [version B.A], [page 1],
line 14 says, "The commission shall select a chair from among
its members."
1:40:09 PM
CHAIR DUNBAR opened public testimony on HB 279.
1:40:29 PM
LARRY WOOD, Chair, Alaska Local Boundary Commission (LBC), Eagle
River, Alaska, testified in opposition to HB 279, asked if the
committee had received an LBC position paper dated March 12,
2024 and cover letter dated March 14, 2024.
1:41:08 PM
CHAIR DUNBAR replied the letter and paper were received.
1:41:09 PM
MR. WOOD asked if the biographical information on the five
serving members was received by members of the committee.
CHAIR DUNBAR replied it was received.
MR. WOOD urged the committee to review the biographical
information of the Local Boundary Commission (LBC) members. He
stated he is uncertain whether LBC members are political
appointees but shared that he was contacted and selected by the
governor's office for the role. He emphasized that LBC
commissioners are volunteers, not state employees, chosen for
their interest in government affairs, objectivity, and skills.
He explained that the commission operates in a quasi-judicial
capacity, addressing incorporation, dissolution, and annexation
petitions impartially. He highlighted the commission's history,
noting its creation under the state constitution to ensure a
statewide entity represents all Alaskans fairly in local
boundary decisions.
1:43:29 PM
MR. WOOD stated he is unsure why Governor Dunlevy appointed him
to the LBC, noting his 50-year career as an attorney in Alaska
and his long residency in Anchorage, Fairbanks, and Eagle River.
He speculated the appointment might relate to his legal
background or prior role as a Republican member and later chair
of the Alaska Public Offices Commission (APOC). He emphasized
that his service is not tied to any state contract but reflects
his commitment to Alaska and its people. He added that a review
of other commissioners' records over the past 60 years would
show similar dedication.
1:44:21 PM
MR. WOOD stated he would like to focus on the history of the
Local Boundary Commission (LBC) from 1987 onward, addressing
comments about representation of the Unorganized Borough. He
noted that the Unorganized Borough geographically encompasses
over half of Alaska but has about 10 percent of the state's
population, with most of it located in the Fourth Judicial
District. He referenced a letter and position paper submitted on
behalf of the LBC, emphasizing that representation of the
Unorganized Borough has existed since the commission's
inception, as every judicial district includes parts of it,
particularly the Fourth Judicial District. He remarked that HB
279 appears tied to broader issues beyond changing his position
or appointing a representative from the organized borough.
1:45:32 PM
MR. WOOD pointed out a connection to HB 151, which introduces
challenges to one of two methods of borough formation in Alaska.
He highlighted the larger issue of borough formation,
particularly disparities in education costs between borough and
unorganized borough residents, as noted by the Ketchikan Gateway
Borough mayor in a recent House committee meeting. Speaking as
an advocate for borough formation and the commission's work, he
urged consideration of Alaska's history of local government
establishment and the methods for incorporating boroughs and
cities in the Unorganized Borough and why that process makes
sense.
1:46:15 PM
SENATORS GIESSEL and Bjorkman joined the meeting.
1:46:54 PM
MR. WOOD emphasized the quasi-judicial nature of the commission
and refrained from commenting on specific proposals but called
for a broader perspective. He highlighted the long history of
commissioners from the Unorganized Borough, listing past members
and chairs from Wrangell, Nome, Pelican, Valdez, and Tok, and
noted periods when two members from the Unorganized Borough
served simultaneously. He urged the committee to recognize the
continuous representation of the Unorganized Borough on the LBC
and to consider the broader context and history of borough
formation in the state.
1:48:59 PM
MR. WOOD urged the committee to examine the history and
development of local government formation in Alaska, emphasizing
the importance of considering the broader context beyond HB 279.
He noted that other related legislation has been introduced,
including a proposal by Representative Prax from [North Pole]
that deals with educational funding.
1:49:52 PM
SENATOR OLSON stated that the issue was raised because some
people felt the unorganized borough lacked adequate
representation. He asked Mr. Wood, the commission's chair, if he
sees this as a problem the legislature needs to resolve.
1:50:16 PM
MR. WOOD stated that inadequate representation from the
unorganized borough had not been a problem. He suggested the
committee speak with Mr. Walker from Healy, located in the
Denali Borough. He noted it was coincidental that no current LBC
member resides in the borough. He added that if the goal is to
require representation from people living in the unorganized
borough outside of municipalities, HB 279 will not accomplish
it.
1:51:29 PM
MR. WOOD requested the committee consider the objective of the
commission. He referenced several boards, such as the Workers'
Compensation Board, as examples where diverse perspectives are
important. He said the legislature acts as assembly for the
unorganized borough providing representation. He questioned the
value of encouraging local interest only when looking at
statewide decisions. He opined that the framers of the
Constitution wanted a board that looked at incorporation
questions from a statewide perspective.
1:52:49 PM
SENATOR OLSON stated that perspectives differ between those
living in an organized borough and those in an unorganized
borough, where residents rely on the legislature to act as their
borough assembly. He emphasized having strong feelings that the
proposed legislation looks out for individuals from unorganized
boroughs, and he is glad the legislation was brought forward.
1:53:37 PM
JAMES SQUYRES, representing self, Deltana, Alaska, testified in
support of HB 279. He stated that he lives in the Fourth
Judicial District within the unorganized borough and supports HB
279. He referenced art. X, sec. 3 of the Constitution of the
State of Alaska which mandates that the entire state be divided
into organized or unorganized boroughs, noting that about half
the state lies in the unorganized borough. He explained that the
LBC consists of five commissioners representing the four
judicial districts and one at-large position, but all five
commissioners currently come from organized boroughs. He argued
that the claim that commissioners represent unorganized borough
perspectives is unconvincing.
1:54:42 PM
MR. SQUYRES stated that the HB 279 does not change the
requirement for a commissioner from each judicial district but
ensures that at least one of the five commissioners comes from
the [unorganized] borough. He said HB 279 addresses
misrepresentation on the LBC and promotes a broader balance of
perspective, expertise, and knowledge. This change would improve
representation for the large land areas that may face boundary
changes or organization issues in the future. He recommended
amending HB 279 to increase the number of appointed
commissioners from unorganized boroughs to at least two. He
suggested requiring that at least one commissioner live in the
unorganized borough outside an incorporated municipality to
ensure a broader perspective. He noted that a similar amendment
received broad support on the House floor and could be confirmed
if sent back with this change. He emphasized that having two of
the five commissioners from unorganized boroughs would not
unbalance the Local Boundary Commission (LBC).
1:55:34 PM
MR. SQUYRES expressed concern that the current makeup of the LBC
lacks perspective and working knowledge of the unorganized
borough, which could result in poor decisions. He cited a recent
full-day LBC meeting on a petition to form a new borough in the
Hoonah area, where commissioners struggled to understand fiscal
metrics related to unorganized boroughs. He stated that a
qualified commissioner from an unorganized borough would already
have knowledge about Regional Education Attendance Areas
(REAAs), federal Payments in Lieu of Taxes (PILT), and the
unique distribution of federal impact aid.
1:56:29 PM
MR. SQUYRES noted a lack of sufficient coverage during the
afternoon session of the meeting to address the fiscal metrics
of organized and unorganized areas along the pipeline corridor.
He stated that during public testimony, he briefed the LBC on
the fiscal contributions of unorganized areas along the pipeline
to the state general fund. He encouraged committee members to
review the oil and gas property tax portion of the State of
Alaska 2023 Fall Revenue Forecast. He concluded that passing HB
279 is a proper exercise of legislative authority under the
Alaska Constitution, art. X, sec. 6, to promote a fair and
balanced LBC.
1:57:37 PM
SENATOR OLSON asked if the sponsor of HB 279 would be in favor
of the amendment Mr. Squyres talked about.
1:57:55 PM
MR. STANDCLIFF replied that there was considerable discussion
about adding a second member from an unorganized borough, which
raised concerns about potentially unbalancing the Local Boundary
Commission (LBC) or influencing its stance on organization. He
noted that Representative Cronk has been in contact with the
governor regarding the legislation. He emphasized that while the
governor appoints commissioners, the legislature establishes the
laws and procedures governing the LBC. He highlighted that it is
unusual for members of a quasi-judicial body to influence policy
regarding the make-up of the body, something he had not seen in
his 27 years of experience. While not recommending the addition
of a second member at this time, he said Representative Cronk
supports having one of the five commissioners from an
unorganized borough, citing the valuable experience and
perspective they would bring to the LBC's deliberations.
1:59:19 PM
CLAY WALKER, Member, Local Boundary Commission, Healy, Alaska,
stated that he was appointed to the Fourth Judicial District
seat on the Local Boundary Commission (LBC) last year and
resides in the Denali Borough, which was established in 1990. He
provided an overview of his experience in local government and
service on various boards. He stated his belief that he was
appointed by the governor due to his extensive study of Alaska's
municipal government and feels qualified to represent the
diverse Fourth Judicial District, which includes the Bethel,
Wade-Hampton, and Southeast Fairbanks census areas, as well as
the Fairbanks North Star and Denali boroughs.
MR. WALKER asserted that LBC commissioners should not speak to
policy issues regarding its composition and should instead
participate through public testimony. He stated his belief that
the decision of the framers of the Constitution to base
representation on the four Judicial Districts fairly reflects
the diverse areas of Alaska. Adding a fifth at large seat makes
a deliberative body from which the governor can select the most
qualified candidate from the state's entire population. He
described this as fair and said mandating that the at-large seat
come from roughly 10 percent of the population, seemed unfair.
He pointed out that, since organized areas can expand, requiring
a seat to come from an area that is structurally designed to
contract is poor policy. He argued that HB 279 appears to be a
legislative attempt to undermine the constitutional goal of
maximizing local government and urged the committee to table the
bill.
2:02:51 PM
SENATOR OLSON asked Mr. Walker, a person from an unorganized
borough, whether unorganized borough residents, who are fully
dependent on the legislature for fair statewide representation,
deserve board representation.
2:03:14 PM
MR. WALKER stated that he represents the interests of the
unorganized borough and emphasized that the LBC is charged with
fairly, objectively, and impartially analyzing potential
boundary changes, incorporations, or detachments. He said he
does not believe that residing in an organized area within the
Fourth Judicial District makes him impartial or non-objective
when reviewing matters before the body. He opined that many
issues facing the unorganized borough are addressed by the
legislature, and he stressed that every legislator, like LBC
commissioners, has a responsibility to represent the interests
of their unorganized borough residents.
SENATOR OLSON stated that Mr. Walker lives on the road system in
the Denali Borough, while he resides in the hinterland of the
unorganized borough in western Alaska. He expressed doubt that
Mr. Walker understands the priorities of those he represents,
who live in more remote unorganized areas, where efforts are
focused on supporting livelihoods. He said he respectfully
disagreed with Mr. Walker's perspective.
2:04:46 PM
SENATOR BJORKMAN stated that he appreciates Mr. Walker's
expertise regarding local governments across Alaska. He noted
that the representative from the Second Judicial District
resides in Kiana, a community within the Northwest Arctic
Borough. He questioned how the practical experience of someone
from Kiana, in terms of local government or the absence of local
government, would differ from the experience of someone living
in an unorganized borough.
2:05:34 PM
MR. WALKER responded by saying he disagreed with Mr. Squyres'
earlier comment that residents of unorganized boroughs have a
deeper understanding of federal Payments in Lieu of Taxes (PILT)
and federal Impact Aid compared to those in organized boroughs.
He asserted that he has a strong understanding of both. However,
he emphasized that broad representation is essential to any
statewide body and praised the commissioner from the Second
Judicial District for effectively representing rural Alaska.
2:06:40 PM
SENATOR BJORKMAN stated that he had a genuine question with no
specific intent or direction. He asked if there are areas within
the unorganized borough that, are not currently in compliance
with the Mandatory Borough Act of 1964.
MR. WALKER stated that he had not reviewed the Mandatory Borough
Act of 1964 recently but noted that most Alaskans live in
boroughs formed under it. He observed that Alaska's development
of governmental structures has been slow and often
disincentivized. He suggested that it might be more relevant to
review the model borough framework developed by the legislature
and the LBC in 2006, rather than focusing solely on the 1964
act.
2:08:26 PM
CHAIR DUNBAR closed public testimony on HB 279.
2:08:36 PM
CHAIR DUNBAR asked Director Moeller about the past makeup of the
LBC.
2:09:08 PM
SANDRA MOLLER, Director, Division of Community and Regional
Affairs, Department of Commerce, Community and Economic
Development (DCCED), Anchorage, Alaska, stated that her division
has been reviewing historical representation on the LBC in light
of the two introduced bills. Since 1987, there have been 185
seats (33 years x 5 seats). Of those appointments, 33 have come
from the unorganized borough, accounting for about 18 percent of
the total. She noted that, like many state boards and
commissions, the availability of interested applicants may
affect representation. She said her division plans to
investigate the extent of interest from potential applicants, as
other boards and commissions have faced challenges in attracting
volunteers.
2:10:55 PM
CHAIR DUNBAR acknowledged that the LBC is a volunteer,
uncompensated board. He asked if there are additional costs
associated with the board, inquiring whether most of the work is
done remotely and if the LBC has a large travel budget. He
requested an overall sense of the board's operational costs.
2:11:10 PM
MS. MOLLER stated that there is no separate budget specifically
for the LBC. The commission is supported by one full-time staff
member, and most costs are related to travel. So far, this
fiscal year, travel expenses have totaled about $3,000, but
higher costs are expected as commissioners will travel from
their home locations to the boundaries of the new petition for
the proposed Hoonah Borough in the Southeast Judicial District
1. She explained that travel costs vary depending on commission
activity, with travel primarily occurring when there are active
petitions. Meetings are required and typically covered by the
general fund, while commissioner travel is linked to specific
petitions.
2:10:53 PM
CHAIR DUNBAR sought clarification, asking if most travel occurs
in response to petitions while typical meetings are conducted
telephonically.
MS. MOLLER replied that is correct.
2:12:44 PM
CHAIR DUNBAR closed public testimony on HB 279.
2:12:48 PM
CHAIR DUNBAR held HB 279 in committee.
2:13:27 PM
There being no further business to come before the committee,
Chair Dunbar adjourned the Senate Community and Regional Affairs
Standing Committee meeting at 2:13 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 279 Testimony Recieved as of 3.18.24.pdf |
SCRA 3/19/2024 1:30:00 PM |
HB 279 |