03/13/2023 08:00 AM House EDUCATION

         HB  69-RECLASSIFICATION OF FIRST CLASS CITIES                                                                      
                                                                                                                                
8:02:04 AM                                                                                                                    
                                                                                                                                
CO-CHAIR ALLARD announced that the  first order of business would                                                               
be HOUSE  BILL NO. 69,  "An Act relating to  the reclassification                                                               
of first class  cities as second class cities;  and providing for                                                               
an effective date."                                                                                                             
                                                                                                                                
8:02:36 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MIKE CRONK,  Alaska State  Legislature, as  prime                                                               
sponsor,  explained  that  HB  69  would  allow  a  community  to                                                               
reclassify from a one-city community  to a two-city community for                                                               
the purpose  of combining a  school district with  another school                                                               
district.                                                                                                                       
                                                                                                                                
8:03:18 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HIMSCHOOT  questioned which communities  would the                                                               
proposed legislation  currently apply  to, and she  questioned if                                                               
there would be other cities forthcoming.                                                                                        
                                                                                                                                
REPRESENTATIVE CRONK replied that  currently only Tanana would be                                                               
affected.                                                                                                                       
                                                                                                                                
DAVE STANCLIFF,  Staff, Representative  Mike Cronk,  Alaska State                                                               
Legislature, on  behalf of  Representative Cronk,  prime sponsor,                                                               
replied to a  follow-up question, explaining that  there are four                                                               
cities  in the  state  which fall  below  the 400-person  minimum                                                               
requirement to  be a first-class  city.   He stated that,  if the                                                               
legislation  passes, Tanana  would not  be required  to make  the                                                               
change, as the change would not be mandatory.                                                                                   
                                                                                                                                
REPRESENTATIVE  CRONK,  in  response  to  a  follow-up  question,                                                               
stated  that Tanana  requested  this because  its  school is  not                                                               
supported well  enough by  the local government.   He  added that                                                               
the government is under stress  because the population has fallen                                                               
to  241 residents.   He  continued that  the district  is working                                                               
with a  larger school district,  but ultimately  it is up  to the                                                               
community to decide.                                                                                                            
                                                                                                                                
8:05:16 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PRAX  questioned  whether reclassification  to  a                                                               
second-class city would still require local tax contribution.                                                                   
                                                                                                                                
MR. STANCLIFF  replied that this  would change when a  city moves                                                               
from  a first-  to  second-class  city, and  this  is the  reason                                                               
Tanana is considering the change.                                                                                               
                                                                                                                                
8:06:16 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STORY  expressed   the  understanding  that  this                                                               
change would need to be made through statute.                                                                                   
                                                                                                                                
REPRESENTATIVE CRONK  responded that  because Tanana is  a first-                                                               
class city, the existing statute does not allow this change.                                                                    
                                                                                                                                
8:07:25 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PRAX commented  that  first-class cities  provide                                                               
some services.  He questioned  whether these would be affected by                                                               
a change in class.                                                                                                              
                                                                                                                                
MR.  STANCLIFF replied  that the  local community  would have  to                                                               
decide,  and they  would do  this under  the proposed  bill by  a                                                               
majority  vote.   He expressed  uncertainty concerning  the local                                                               
services; however, he  stated that the city  is having difficulty                                                               
obtaining  quorum votes.   He  expressed  the understanding  that                                                               
Tanana is failing as a city under the first-class status.                                                                       
                                                                                                                                
8:08:39 AM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease at 8:08 a.m.                                                                                 
                                                                                                                                
8:08:52 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  ALLARD  opened  public  testimony  on  HB  69.    After                                                               
ascertaining there was  no one who wished to  testify, she closed                                                               
public testimony.                                                                                                               
                                                                                                                                
8:09:12 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STORY  asked  whether the  school  districts  had                                                               
responded.                                                                                                                      
                                                                                                                                
8:09:30 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CRONK   replied  that  the  Tanana   City  School                                                               
District  is   under  contract  with  the   Yukon-Koyukuk  School                                                               
District (YKSD),  and now Tanana is  basically functioning under.                                                               
He stated that both school districts are in agreement.                                                                          
                                                                                                                                
8:10:25 AM                                                                                                                    
                                                                                                                                
CO-CHAIR ALLARD announced HB 69 was held over.