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.