SENATOR  RANDY   PHILLIPS  introduced   SB  164   (MUNICIPAL                 
  INCORP/RECLASSIFICATION/DISSOLUTION) as the  first order  of                 
  business.                                                                    
                                                                               
  Number 015                                                                   
                                                                               
  DARROLL HARGRAVES,  Chairman of  the  Alaska Local  Boundary                 
  Commission  testified from  Ketchikan on  the teleconference                 
  network.    He said  the legislation  addresses a  series of                 
  changes to Title 29 as suggested  in the LBC's report to the                 
  legislature.                                                                 
                                                                               
  Number 070                                                                   
                                                                               
  DAN BOCKHORST, Department  of Community & Regional  Affairs,                 
  serving as  staff to  the LBC  testified via  teleconference                 
  from Anchorage.  He said the  department has reviewed SB 164                 
  and finds that it does address many of the issues  which the                 
  Local  Boundary Commission raised in its  1992 report to the                 
  legislature.                                                                 
                                                                               
                                                                               
  Mr.  Bockhorst said  a number  of other  issues have  arisen                 
  since  the  report was  made and  he  would be  forwarding a                 
  letter to the  committee outlining suggested changes  to the                 
  legislation.    Included is adding  provisions which discuss                 
  and   permit   merger  and   consolidation   of  home   rule                 
  governments.  Also,  they recommend some minor  housekeeping                 
  amendments to the  statute which they think  are appropriate                 
  or necessary in the course of their work on this matter.                     
                                                                               
  Mr. Bockhorst said as  SB 164 presently exists and  with the                 
  changes  that  the department  is  proposing, there  is zero                 
  impact as far as the department is concerned.                                
                                                                               
  Number 225                                                                   
                                                                               
  FRANCES  HALLGREN,  a member  of  the Alaska  Local Boundary                 
  Commission,  noted  she was  present  in Sitka  listening to                 
  testimony on SB 164.                                                         
                                                                               
  SENATOR  RANDY  PHILLIPS  said  SB  164  would  be  held  in                 
  committee  pending receipt  of  more  information  from  Mr.                 
  Bockhorst on further suggested changes to the legislation.