04/14/2000 09:08 AM Senate FIN

     CS FOR HOUSE BILL NO. 255(CRA)                                                                                             
     "An Act relating to cities incorporated under state aw                                                                     
     that are home rule communities."                                                                                           
                                                                                                                                
REPRESENTATIVE FRED  DYSON advised that HB  255 was intended                                                                    
to allow  an existing  second class city,  or unincorporated                                                                    
area, to  form a "home rule  community" government structure                                                                    
under  State  law.   The  city  or  area would  be  allowed,                                                                    
through the charter system, to  flexibly define its scope of                                                                    
governing powers and services to meet specific area needs.                                                                      
                                                                                                                                
Currently, all  home rule governments  are required  to meet                                                                    
strict  financial auditing  requirements, provide  land-use,                                                                    
zoning  and  platting  services  and  constitute  their  own                                                                    
school  district.   The  proposed  bill  would remove  these                                                                    
requirements allowing  smaller communities  to share  in the                                                                    
strength  and  flexibility  of   the  charter  system  while                                                                    
avoiding some  of the red tape.   The goal would  be greater                                                                    
self-determination  and a  more locally  relevant government                                                                    
structure.                                                                                                                      
                                                                                                                                
Senator Wilken stated that it was  a puzzle to him why there                                                                    
are so many  options for State government.   He acknowledged                                                                    
that the framers of the  State Constitution intended for the                                                                    
State  to organized.   However,  Senator Wilken  pointed out                                                                    
that most  of the State  does not want  organized government                                                                    
but still wants funding  for their school district education                                                                    
needs.     If  the people  in the  second  class cities  and                                                                    
unorganized areas want to govern  themselves, they should be                                                                    
responsible for picking up  their educational funding costs.                                                                    
Senator  Wilken  recommended that  the  bill  not pass  from                                                                  
Committee until  discussion regarding that concern  had been                                                                    
undertaken.                                                                                                                     
                                                                                                                                
Senator Adams  observed that  there are  some places  in the                                                                    
State that cannot  pay for their educational  needs, as they                                                                    
do  not  have a  tax  base.   One  of  the  things that  the                                                                    
Legislature  could do  would  be to  determine  if there  is                                                                    
natural resource  money earned  in rural Alaska  which could                                                                    
be given  to those areas in  the State to pay  for education                                                                    
costs.  The Alaska Constitution  indicates that the State of                                                                    
Alaska must provide education.   All people need to be taken                                                                    
care of even when they are not organized.                                                                                       
                                                                                                                                
Co-Chair  Torgerson advised  that the  legislation would  be                                                                    
HELD in Committee for further consideration.                                                                                    
                                                                                                                                
                                                                                                                                
Tape: SFC - 00 #88, Side B    8:32 AM