The Senate Community & Regional Affairs Committee was called to order by Chairman Randy Phillips at 9:07 a.m. He brought SB 291 (BOROUGH INCORPORATION & ANNEXATION) before the committee and stated testimony would be taken over the Legislative Teleconference Network. Number 010 MIKE WALLERI, General Counsel, Tanana Chiefs Conference, testifying from Fairbanks and speaking to the proposed amendments to SB 291, said of the five amendments, four of them didn't seem to be any problem. However, amendment #5 proposes that if the majority of people in an area disapprove borough incorporation, 15 percent of the voters can present a petition to the Local Boundary Commission, which would then propose the incorporation to the Legislature. He said this would raise the constitutional question about maximum local participation. If the majority of people in an area have rejected the idea of borough incorporation, the notion that 15 percent can then override that with a petition to the Boundary Commission seems to be counter to the notions of democracy and would raise severe constitutional questions as to whether or not the local participation was being maximized as required by the Alaska Constitution. He suggested that rather than adopting amendment #5, deleting subsection (4) paragraph (d) in its entirety. Number 100 BONNIE JENKINS, testifying from Tok, also voiced concern with subsection (d) in Section 4, because it would allow the majority of voters to be overruled by the Legislature by 15 percent of the voters presenting a petition to the Local Boundary Commission. She also questioned the cost and where the money would come from to incorporate as a borough. Number 135 GLENN MARUNDE, testifying from Tok, stated he has mixed emotions with SB 291; there are parts of the bill that are long overdue and there are parts that are of great concern to him. He suggested the intent of SB 291 should be changed from eliminating the unorganized borough to providing a means to eliminate or reduce disincentives and enhance incentives for the formation of boroughs. He also suggested deleting subsection (d) in Section 4. He questioned if sovereign Native villages in a newly organized borough would be exempt from participating in borough government. SENATOR DONLEY answered that he was not aware of any purely sovereign villages in Alaska. SENATOR TAYLOR added that the important thing is that any improved lands that are Native lands and that would fall within this jurisdiction would be taxable. Number 206 PAUL SMITH, testifying from Tok, voiced his concern over allowing the Legislature to overturn a vote. He stated it was his right, and if the Legislature continues in this direction, there will be a lawsuit. Number 230 MAYOR ALBERT DICK, testifying from Hoonah, informed the committee that a letter from the City of Hoonah has been sent to the committee stating that they do have some opposition to SB 291. Number 245 There being no further witnesses to testify on SB 291, SENATOR RANDY PHILLIPS stated the committee would take up consideration of the proposed amendments to the bill. He brought Amendment No. 1 before the committee and said it was in response to a concern raised by people in Tok. SENATOR DONLEY stated he had no objection to the amendment. Number 248 SENATOR LEMAN moved that Amendment No. 1 be adopted. Hearing no objection, the motion carried. AMENDMENT NO. 1 Page 1, lines 4 - 8: Delete all material and insert the following: * Section 1. LEGISLATIVE PURPOSE. It is the purpose of the Act to eliminate the unorganized borough by including all regions in the state in an organized borough or unified municipality in accordance with Article X, Section 3 of the Constitution of the State of Alaska. Number 255 SENATOR RANDY PHILLIPS brought Amendment No. 2 before the committee. The amendment will give more representation for the unorganized area by providing that one person from each of the four judicial districts in the unorganized areas would be a member of the committee on municipalities. SENATOR DONLEY stated he had no objection to the amendment. Number 258 SENATOR LEMAN moved that Amendment No. 2 be adopted. Hearing no objection, the motion carried. AMENDMENT NO. 2 Page 2, line 8: After, "Act (43 U.S.C. 1601 - 1628)": insert: "from each of the four Judicial Districts;" Number 260 SENATOR RANDY PHILLIPS brought Amendment No. 3, which was suggested by a Tok resident, before the committee. DAN BOCKHORST, Staff to the Local Boundary Commission, explained that the language in the amendment would extend the availability of the report to all unincorporated communities in the unorganized boroughs, as are defined in the state statutes for revenue sharing purposes. SENATOR DONLEY stated he had no objection to the amendment. Number 278 SENATOR LEMAN moved that Amendment No. 3 be adopted. Hearing no objection, the motion carried. AMENDMENT NO. 3 Page 2, line 20: After "municipalities" insert "and to all unincorporated communities as defined by AS 29.60.140(b)." Number 285 SENATOR RANDY PHILLIPS brought Amendment No. 4 before the committee. The amendment was in response to a concern brought up at a previous hearing by residents of Tok. SENATOR DONLEY stated he had no objection to the amendment. Number 290 SENATOR TAYLOR moved that Amendment No. 4 be adopted. Hearing no objection, the motion carried. AMENDMENT NO. 4 Page 2, line 30: After "least" delete "one public hearing" and insert in its place "two public hearings at different locations" Number 301 SENATOR RANDY PHILLIPS brought Amendment No. 5 before the committee. SENATOR DONLEY stated the amendment was potentially unconstitutional, and that it usurps the purpose of the bill. It is a decision that the Legislature is in charge of now as the acting assembly for the unorganized boroughs. AMENDMENT NO. 5 Page 3, line 16: After "may" insert: "upon receipt of a petition signed by 15 percent of the number of voters who voted in the last general election in the region" Page 3, line 17: After "the" delete "Eighteenth" and insert "Nineteenth" in its place There was no motion to adopt Amendment No. 5. Number 314 SENATOR LEMAN moved the following Amendment No. 6 be adopted. Hearing no objection, the motion carried. AMENDMENT NO. 6 Page 3, line 17: After "the" deleted "Eighteenth" and insert in its place "Nineteenth" SENATOR TAYLOR offered the following Amendment No. 7, and explained that the amendment would change this from a negative action taken by the Legislature to an affirmative action taken by the Legislature within the same time frame. AMENDMENT NO. 7 Page 3, line 18: Delete "may" and insert "shall" Change "disapproved" to "approved" Page 3, line 20: Delete "not" and change "disapprove" to "approved" Number 350 DAN BOCKHORST said the department is not stating that the amendment as proposed by Senator Taylor would be unconstitutional, however, he pointed out that there are provisions that exist in Article 10, Section 12 of the constitution which conform precisely to the manner in which the bill is currently worded. SENATOR PHILLIPS added that Tam Cook, Legislative Legal Counsel, stated verbally that this change could possibly be unconstitutional. SENATOR TAYLOR moved the adoption of Amendment No. 7. SENATOR LEMAN objected. The roll was taken with the following result: Senator Taylor voted "Yea" and Senators Leman and Phillips voted "Nay." The Chairman stated the amendment failed. There being no further amendments on SB 291, SENATOR RANDY PHILLIPS asked for a motion on the bill. Number 386 SENATOR LEMAN moved that SB 291, as amended, be passed out of committee with individual recommendations. Hearing no objection, it was so ordered.