(a) Two petition methods may be used to initiate dissolution of a municipality: (1) petition to the Local Boundary Commission under regulations adopted by the commission; or (2) the local option method specified in AS 29.06.460 - 29.06.510. (b) The department shall investigate a municipality that it considers to be inactive and shall report to the Local Boundary Commission on the status of the municipality. The commission may submit its recommendation to the legislature that the municipality be dissolved in the manner provided for submission of boundary changes in art. X, § 12 of the state constitution. (c) A borough is dissolved when its entire territory is included in a home rule or first class city or cities. A city is dissolved when all its powers become areawide borough powers.
Alaska Legal Code