1. (a) After filing a petition as required under 3 AAC 110.310 and 3 AAC 110.420, a unified municipality may deunify and incorporate as a non-unified home rule borough if the commission determines that

   1. (1) the municipality to deunify meets the standards for incorporation of a borough, as set out in the Constitution of the State of Alaska, AS 29.05, 3 AAC 110.045 - 3 AAC 110.065, and 3 AAC 110.900 - 3 AAC 110.970;
   2. (2) deunification of the unified municipality is in the best interest of that municipality and its citizens;
   3. (3) deunification of the unified municipality is in the best interests of the state;
   4. (4) the non-unified home rule borough has all the rights, powers, duties, assets, and liabilities of the former unified municipality, and all charter provisions, ordinances, resolutions, regulations, procedures, and orders of the former unified municipality remain in effect except to the extent that any of them would otherwise prohibit the incorporation of a city government within the boundaries of the former unified municipality or is inconsistent with other provisions of the law and require an amendment to any of those laws as provided in (b) of this section.
2. (b) A petition for deunification of a unified municipality must comply with the requirements for amending the charter or other laws of the unified municipality if a provision of the charter or other laws are affected by the dissolution and incorporation. If that compliance requires an election by the qualified voters of the municipality, that election becomes a condition of approval whether the petition is by legislative review or local option.
3. (c) The commission may accept or deny a petition for deunification and may amend or attach conditions to it.

(Eff. 1/9/2008, Register 185)