SENATOR   RANDY   PHILLIPS   brought   SB   164   (MUNICIPAL                 
  INCORPORATION,    RECLASSIFICATION, DISSOLUTION)  before the                 
  committee as the first order of business.                                    
                                                                               
  Number 015                                                                   
                                                                               
  DAN BOCKHORST,  Department of Community &  Regional Affairs,                 
  staff  to Alaska  Local Boundary Commission,  testified from                 
  Anchorage over the  Legislative Teleconference Network.   He                 
  said he has reviewed the proposed committee substitute dated                 
  4/9/93, and that it encompasses  most of the recommendations                 
  made by the department with two exceptions.                                  
                                                                               
  The work  draft retains language the  department recommended                 
  be deleted because  it felt  it was redundant  to the  LBC's                 
  tasks  that  would be  assigned under  the  bill.   It would                 
  retain  the  provision   for  a  city  council   hearing  on                 
  reclassification as well as requiring a hearing  by the LBC.                 
  The department does not have strong objection to keeping the                 
  language in the bill, but they suggest a technical amendment                 
  to AS 29.04.040(c)  to reflect that reclassification  is now                 
  limited only to reclassification of first class cities.                      
                                                                               
  The  second  suggested change  is  of  a  policy nature  and                 
  relates to language  in AS 29.06.500(b) that allows a second                 
  class  city with  a population  of 3,500  or more  permanent                 
  residents  in jurisdictional  boundaries  that encompass  35                 
  square miles or  more to adopt  a home rule  charter.    The                 
  department feels  that  this  proposal  should  be  repealed                 
  because  the  language  is  tantamount  to being  local  and                 
  special legislation.  The provisions would apply only to one                 
  of  Alaska's  116 second  class  cities, and  the department                 
  believes that the statutes, from a policy standpoint, should                 
  be broad and  general and not applicable to single interests                 
  as is the case in this particular situation.                                 
                                                                               
  Mr.  Bockhorst  outlined  three  other  suggested  technical                 
  changes: expanding  the title of the Act; amending the title                 
  of  Section 2; and  on page  8, line  19, change  "shall" to                 
  "may."                                                                       
                                                                               
  Number 155                                                                   
                                                                               
                                                                               
  SENATOR RANDY PHILLIPS requested that Mr.  Bockhorst provide                 
  the  committee with a  letter outlining  the changes  he had                 
  discussed, as well  as providing a  new fiscal note for  the                 
  committee substitute.   He then closed the public hearing on                 
  SB 164.