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, presented  the second  hearing on  HB 69,  and explained                                                               
the bill  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  asked  which  communities  this  would                                                               
apply to right now, and if there are other cities forthcoming.                                                                  
                                                                                                                                
REPRESENTATIVE CRONK  replied that currently, the  City of 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 from  Representative Himschoot,                                                               
and explained  there are  four cities present  in the  state that                                                               
fall below the 400-person minimum that  you must have to become a                                                               
first-class  city.   He stated  this  bill is  not mandatory,  it                                                               
simply allows Tanana the ability to  make the change if it wishes                                                               
to do so.                                                                                                                       
                                                                                                                                
8:04:24 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HIMSCHOOT asked why Tanana wants this.                                                                           
                                                                                                                                
REPRESENTATIVE CRONK replied because  the school is not supported                                                               
well  enough by  the local  government; the  government is  under                                                               
stress because  the population of  the City of Tanana  has fallen                                                               
from 241  people from  a high  of over  2,000 at  one time.   The                                                               
district  is   working  with  a   larger  school   district,  but                                                               
ultimately the community has to decide.                                                                                         
                                                                                                                                
8:05:16 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PRAX asked,  "if  this reclassifies  Tanana to  a                                                               
second-class  city, would  they  not still  be  required for  the                                                               
local tax contribution?"                                                                                                        
                                                                                                                                
MR.  STANCLIFF replied  that  changes when  a  city changes  from                                                               
first-  to  second-class,  which  is why  Tanana  looks  to  this                                                               
opportunity to consider.                                                                                                        
                                                                                                                                
8:06:16 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STORY stated  her  understanding  was that  "this                                                               
could be changed through statute."                                                                                              
                                                                                                                                
REPRESENTATIVE CRONK replied the caveat  here is that Tanana is a                                                               
class  one  city, and  that  stops  that process  [being  changed                                                               
through statute] from happening.                                                                                                
                                                                                                                                
8:07:25 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PRAX  commented  that there  are  other  services                                                               
provided  by  first-class cities,  and  asked  if these  services                                                               
would be affected by a change in class.                                                                                         
                                                                                                                                
MR. STANCLIFF  replied the local  community would have  to decide                                                               
and they would do that under the bill by a majority vote.                                                                       
                                                                                                                                
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 if there  had been anything heard from                                                               
the school district.                                                                                                            
                                                                                                                                
8:09:30 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CRONK  replied the Tanana City  School District is                                                               
under  contract with  the Yukon-Koyukuk  School District  (YKSD),                                                               
and Tanana  is basically functioning  under YKSD. He  stated that                                                               
both school districts are "in agreeance."                                                                                       
                                                                                                                                
8:10:25 AM                                                                                                                    
                                                                                                                                
CO-CHAIR ALLARD announced HB 69 was held over.