1. (a) After filing a petition under AS 29.06.450(a)(1), a borough may dissolve if the commission determines that

   1. (1) dissolution of the borough is in the best interests of the state;
   2. (2) the borough is free of debt or has satisfied each creditor with a method of repayment; and

   3. (3) the borough

      1. (A) no longer meets the standards for incorporation of boroughs, as set out in the Constitution of the State of Alaska, AS 29.05, and 3 AAC 110.045 - 3 AAC 110.065, and dissolution is in the best interests of the state;
      2. (B) has ceased to exercise any of its mandatory powers; or
      3. (C) is a unified municipality and is subject to a petition for deunification under 3 AAC 110.331 - 3 AAC 110.333.
2. (b) Repealed 1/9/2008.
3. (c) Except as otherwise provided in this subsection, in determining whether a borough is free of debt or has satisfied each creditor with a method of repayment, the commission will require an audit to be performed by an independent certified accountant identifying all assets and liabilities of the borough.

(Eff. 7/31/92, Register 123; am 5/19/2002, Register 162; am 1/9/2008, Register 185)