04/25/2023 01:30 PM Senate COMMUNITY & REGIONAL AFFAIRS

         HB  69-RECLASSIFICATION OF FIRST CLASS CITIES                                                                      
                                                                                                                              
                [Contains discussion of SB 79.]                                                                                 
                                                                                                                                
2:38:50 PM                                                                                                                    
CHAIR DUNBAR  announced the  consideration of  CS FOR  HOUSE BILL                                                               
NO. 69(CRA)  "An Act  relating to  the reclassification  of first                                                               
class  cities  as  second  class cities;  and  providing  for  an                                                               
effective date."                                                                                                                
                                                                                                                                
CHAIR DUNBAR invited  Mr. Stancliff to put himself  on the record                                                               
and give  a brief  recap and summary  of the  differences between                                                               
the House and Senate versions of the bill, HB 69 and SB 79.                                                                     
                                                                                                                                
2:39:34 PM                                                                                                                    
DAVE STANCLIFF,  Staff, Representative  Mike Cronk,  Alaska State                                                               
Legislature, Juneau,  Alaska, gave  a recap  of CSHB  69(CRA), on                                                               
behalf of  the sponsor, and  reviewed the differences  between it                                                               
and  the  Senate   companion  bill,  SB  79.   He  described  two                                                               
differences between the bills:                                                                                                  
                                                                                                                                
- Time Extension to Interact with the Community                                                                                 
  The Local Boundary Commission (LBC) asked for more time to                                                                    
  interact with the community. The original bill allotted 10                                                                    
  days. CSHB 69(CRA) extends that period to 30 days.                                                                            
                                                                                                                                
- Added Sunset Clause                                                                                                           
  LBC requested a little time to streamline its process to                                                                      
  prevent this matter from coming before the legislature again. A                                                               
  two-year timeframe was agreed upon for the sunset provision.                                                                  
                                                                                                                                
MR. STANCLIFF explained  that CSHB 69(CRA) allows  a city council                                                               
to  decide whether  to reclassify  as a  second-class city.  This                                                               
bill pertains  to the City of  Tanana. A positive benefit  of the                                                               
reclassification of Tanana is that  it would result in the Tanana                                                               
City  School District  (TCSD)  merging  with the  Yukon-Kuskokwim                                                               
School   District  (YKSD).   This   change   would  be   fiscally                                                               
advantageous to the  State. TCSD, YKSD, the  Tanana City Council,                                                               
and the  mayor agree that the  school district merger is  the way                                                               
to  go. The  City of  Tanana dropped  below the  first-class city                                                               
minimum of  400 residents. Four  other communities are  below the                                                               
400-resident level, but the City of  Tanana is the only city that                                                               
requested reclassification as a second-class city.                                                                              
                                                                                                                                
2:41:38 PM                                                                                                                    
CHAIR  DUNBAR asked  to hear  more about  the need  for a  sunset                                                               
clause  and  sought  clarification   that  the  sunset  provision                                                               
applies to the reclassification streamlining process.                                                                           
                                                                                                                                
MR.  STANCLIFF  replied  that's  right.  He  explained  that  LBC                                                               
usually  meets  once or  twice  per  year.  LBC has  no  internal                                                               
mechanism for  addressing population  thresholds that  drop below                                                               
the  minimum  for first-class  cities.  The  Commission can  only                                                               
address this  through a lengthy process  that takes up to  a year                                                               
or more.  Relief is  needed sooner.  LBC requested  permission to                                                               
work on an internal, streamlined  process so the legislature does                                                               
not have to act again.                                                                                                          
                                                                                                                                
CHAIR DUNBAR asked whether LBC could do this through regulation.                                                                
                                                                                                                                
MR. STANCLIFF replied yes, LBC can do it internally.                                                                            
                                                                                                                                
2:42:57 PM                                                                                                                    
SENATOR GRAY-JACKSON sought confirmation that  the aim is to have                                                               
LBC take  care of this  issue by the  date in the  sunset clause,                                                               
June 30, 2025.                                                                                                                  
                                                                                                                                
MR.  STANCLIFF answered  yes. LBC  will establish  a process  for                                                               
communities to  rapidly address any  crisis that might  occur due                                                               
to a declining population issue.                                                                                                
                                                                                                                                
2:43:33 PM                                                                                                                    
SENATOR BJORKMAN  asked whether the legislature  posits the Local                                                               
Boundary  Commission has  the tools  and resources  to engage  in                                                               
this process independently.                                                                                                     
                                                                                                                                
MR. STANCLIFF answered yes. LBC  indicated it needs procedures to                                                               
address  declining  populations  and  can handle  this  job.  The                                                               
Commission  asked  for  a  sunset.   The  legislature  takes  the                                                               
Commission at  its word that  it can  complete the task  and that                                                               
there will  be no  need for  this statute  beyond the  sunset. He                                                               
said if  it does  not work  out, the  legislature always  has the                                                               
prerogative of extending or repealing the sunset clause.                                                                        
                                                                                                                                
SENATOR BJORKMAN  wondered whether the legislature  ought to keep                                                               
the statute  in law  rather than sunset  it, because  keeping the                                                               
statute would empower LBC to handle this process.                                                                               
                                                                                                                                
MR.  STANCLIFF  replied   that  the  sunset  clause   is  at  the                                                               
committee's and the legislature's  discretion. The Local Boundary                                                               
Commission  suggested  it  to  streamline  its  process;  it  was                                                               
included  as a  courtesy.  He  said it  is  up  to the  committee                                                               
whether or not to grant it.                                                                                                     
                                                                                                                                
2:46:23 PM                                                                                                                    
CHAIR DUNBAR sought confirmation that  LBC could figure out a way                                                               
to do this without a sunset provision.                                                                                          
                                                                                                                                
MR. STANCLIFF replied that is correct.                                                                                          
                                                                                                                                
2:46:50 PM                                                                                                                    
SENATOR  GRAY-JACKSON asked  whether  the sponsor  of the  Senate                                                               
companion bill, SB 79, approves of the changes.                                                                                 
                                                                                                                                
MR. STANCLIFF replied that the  sponsors worked closely together.                                                               
The Senate sponsor  agreed to let the House take  the lead on the                                                               
bill.  He is  fully  informed  and in  agreement  with the  House                                                               
version of the bill.                                                                                                            
                                                                                                                                
2:47:35 PM                                                                                                                    
SENATOR GIESSEL  sought clarification that the  Senate version of                                                               
the bill, SB 79, does not contain a sunset clause.                                                                              
                                                                                                                                
MR.  STANCLIFF  replied that's  correct.  He  explained that  the                                                               
Senate  version was  introduced  before the  House Community  and                                                               
Regional  Affairs Committee  adopted  an amendment  to the  House                                                               
version that added  a sunset provision and an  adjustment from 10                                                               
to 30 days. He said that is the difference.                                                                                     
                                                                                                                                
2:48:05 PM                                                                                                                    
CHAIR DUNBAR opened  public testimony on HB 69;  finding none, he                                                               
closed public testimony. He held HB 69 in committee.