00 CS FOR SENATE BILL NO. 365(FIN) 01 "An Act enacting, amending, and repealing laws providing for state agency 02 functions and services related to transportation and capital improvement planning, 03 workers' compensation, motor vehicles and motor vehicle insurance, police 04 protection service areas established subject to voter approval in unified 05 municipalities for services provided by the Department of Public Safety, medical 06 care for prisoners, state building leases, and review and approval of water and 07 sewer systems, for the purpose of reducing state government expenditures; and 08 providing for an effective date." 09 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 10 * Section 1. AS 19.10.140 is amended to read: 11  Sec. 19.10.140. LONG-RANGE PROGRAM FOR HIGHWAY 12 CONSTRUCTION [AND MAINTENANCE]. The [GOVERNOR SHALL REQUIRE 13 THE] department shall [TO] establish a continuing, long-range program for highway 14 construction [AND MAINTENANCE]. The program must annually project proposed 01 construction [AND MAINTENANCE] of highways in a priority format for not less 02 than the next succeeding five years. A statement of the program shall be submitted 03 by the governor to the legislature annually [, AND THE LONG-RANGE PROGRAM 04 SHALL INCLUDE IN DETAIL THE PROGRAM PREPARED UNDER 05 AS 19.10.150]. 06 * Sec. 2. AS 19.10.150 is amended to read: 07  Sec. 19.10.150. CONSTRUCTION PROGRAM. Before February 2 of each 08 year, the department shall prepare a statement showing what construction work has 09 been requested and proposed and may be undertaken by the department during the 10 following construction season. The statement must set out [FORTH A GENERAL 11 ITEMIZATION OF] the estimated cost for each project and the total estimates of all 12 projects. [THE DEPARTMENT SHALL ADOPT A CONSTRUCTION PROGRAM 13 WHICH MUST INCLUDE THE PROJECTS TO BE UNDERTAKEN BY IT 14 DURING THE FOLLOWING CONSTRUCTION SEASON AND MUST ESTABLISH 15 PROJECT PRIORITIES.] The department may increase, decrease, amend, or revise 16 the construction program from time to time as circumstances warrant. 17 * Sec. 3. AS 19.10.160 is amended to read: 18  Sec. 19.10.160. STANDARD DRAWINGS [PLANS] AND 19 SPECIFICATIONS. The department may [SHALL] prepare and adopt uniform 20 standard drawings [PLANS] and specifications for the establishment and [,] 21 construction [, AND MAINTENANCE] of highways in the state. The department may 22 amend the drawings [PLANS] and specifications as it considers advisable. [THE 23 STANDARDS MUST CONFORM AS CLOSELY AS PRACTICABLE TO THOSE 24 ADOPTED BY THE AMERICAN ASSOCIATION OF STATE HIGHWAY AND 25 TRANSPORTATION OFFICIALS.] 26 * Sec. 4. AS 23.30.041(e) is amended to read: 27  (e) An employee shall be eligible for benefits under this section upon the 28 employee's written request and by having a physician predict that the employee will 29 have permanent physical capacities that are less than the physical demands of the 30 employee's job as described in the United States Department of Labor's "Selected 31 Characteristics of Occupations Defined in the Revised Dictionary of Occupational 01 Titles" for 02  (1) the employee's job at the time of injury; or 03  (2) other jobs that exist in the labor market that the employee has held 04 or received training for within 10 years before the injury or that the employee has held 05 following the injury for a period long enough to obtain the skills to compete in the 06 labor market, according to specific vocational preparation codes as described in the 07 United States Department of Labor's "Selected Characteristics of Occupations Defined 08 in the Revised Dictionary of Occupational Titles." 09 * Sec. 5. AS 23.30.095(k) is amended to read: 10  (k) In the event of a medical dispute regarding determinations of causation, 11 medical stability, ability to enter a reemployment plan, degree of impairment, 12 functional capacity, the amount and efficacy of the continuance of or necessity of 13 treatment, or compensability between the employee's attending physician and the 14 employer's independent medical evaluation, a second independent medical evaluation 15 shall be conducted by a physician or physicians selected by the board or its designee 16 from a list established and maintained by the board and its designee. The cost of the 17 examination and medical report shall be paid by the employer. The report of the 18 independent medical examiner shall be furnished to the board and to the parties within 19 14 days after the examination is concluded. A person may not seek damages from an 20 independent medical examiner caused by the rendering of an opinion or providing 21 testimony under this subsection, except in the event of fraud or gross incompetence. 22 * Sec. 6. AS 23.30.190(b) is amended to read: 23  (b) All determinations of the existence and degree of permanent impairment 24 shall be made strictly and solely under the whole person determination as set out in 25 the current edition of the American Medical Association Guides to the Evaluation of 26 Permanent Impairment at the time of the impairment rating, except that an 27 impairment rating may not be rounded to the next five percent. The board shall adopt 28 a supplementary recognized schedule for injuries that cannot be rated by use of the 29 American Medical Association Guides. 30 * Sec. 7. AS 28.05.061(c) is amended to read: 31  (c) The commissioner and officers and employees of the department designated 01 by the commissioner shall, upon request, prepare under the seal of the department and 02 deliver, unless otherwise prohibited by law, a certified copy of any record of the 03 department maintained under this title or regulations adopted under this title, charging 04 a fee for each certified copy. A certified copy, or an electronic record certified by 05 the department, is admissible in a proceeding in a court in the same manner as the 06 original document. 07 * Sec. 8. AS 28.05.121 is amended to read: 08  Sec. 28.05.121. GIVING OF NOTICE. When the department is authorized or 09 required to give notice under this title or regulations adopted under this title, unless a 10 different method of giving notice is otherwise expressly provided, notice shall be given 11 by a qualified person, either by personal delivery to the person to be notified or by 12 first class [REGISTERED OR CERTIFIED] mail, [RETURN RECEIPT 13 REQUESTED,] addressed to the person at the address of the person as shown in the 14 electronic records of the department. The giving of notice by mail is considered 15 complete upon placing the notice in a United States Post Office receptacle, with 16 appropriate postage [THE RETURN OF THE RECEIPT OR UPON RETURN OF 17 THE NOTICE AS UNDELIVERABLE, REFUSED, OR UNCLAIMED]. Proof of the 18 giving of notice in either manner may be made by the affidavit of the person giving 19 the notice by personal delivery or by mail, naming the person to whom the notice was 20 given and specifying the time, place, and manner of giving the notice. 21 * Sec. 9. AS 28.05.141(b) is amended to read: 22  (b) A hearing ordered under (a) of this section shall be held telephonically at 23 a time and date set by [AT THE OFFICE OF] the department, except that if the 24 department determines that an in-person hearing is necessary to determine factual 25 issues, the department may order that the hearing be conducted in person at a 26 place, time, and date set by the department [NEAREST TO THE RESIDENCE OF 27 THE PERSON REQUESTING THE HEARING UNLESS THE DEPARTMENT AND 28 THE PERSON AGREE THAT THE HEARING IS TO BE HELD ELSEWHERE]. 29 The department may [SHALL] grant a hearing delay only if the person shows, to the 30 satisfaction of the department, [PRESENTS] good cause for the delay that is beyond 31 the control of the person. If a person fails to appear for the hearing at the time and 01 place stated by the department and if a hearing delay has not been granted, the 02 person's failure to appear is considered a waiver of the hearing and the department 03 may take appropriate action with respect to the person. 04 * Sec. 10. AS 28.10.031(b) is amended to read: 05  (b) A licensed vehicle dealer may issue to the purchaser of a vehicle sold by 06 the dealer a temporary permit to drive the vehicle. A permit is effective for a period 07 not to exceed 60 [30] days. The commissioner shall adopt regulations governing the 08 issuance of permits under this section. 09 * Sec. 11. AS 28.10.108(c) is amended to read: 10  (c) A vehicle subject to registration [AND NOT DESCRIBED IN (b) OF THIS 11 SECTION] shall have its initial registration, and may have its annual registration, 12 renewed in the month of initial registration in the state, subject to the provisions of (f) 13 of this section. 14 * Sec. 12. AS 28.15.166(e) is amended to read: 15  (e) The [NOTWITHSTANDING AS 28.05.141(b), THE] hearing under this 16 section shall be held telephonically at a time and date set by [AT THE OFFICE OF] 17 the department, except that if the department determines that an in-person hearing 18 is necessary to determine factual issues, the department may order that the 19 hearing be conducted in person at a place, time, and date set by the department 20 [NEAREST TO THE RESIDENCE OF THE PERSON REQUESTING THE 21 HEARING UNLESS 22  (1) A DISTRICT COURT JUDGE OR A MAGISTRATE HAS BEEN 23 DESIGNATED AS A HEARING OFFICER IN THE MATTER BY THE 24 COMMISSIONER; OR 25  (2) THE DEPARTMENT AND THE PERSON AGREE THAT THE 26 HEARING IS TO BE HELD ELSEWHERE]. 27 * Sec. 13. AS 28.15.166(f) is amended to read: 28  (f) A review under this section shall be held before a hearing officer 29 designated by the commissioner. [UPON THE CONSENT OF THE 30 ADMINISTRATIVE DIRECTOR OF THE STATE COURT SYSTEM, THE 31 COMMISSIONER MAY DESIGNATE A DISTRICT COURT JUDGE OR A 01 MAGISTRATE TO SERVE AS THE HEARING OFFICER.] The hearing officer shall 02 have authority to 03  (1) administer oaths and affirmations; 04  (2) examine witnesses and take testimony; 05  (3) receive relevant evidence; 06  (4) issue subpoenas, take depositions, or cause depositions or 07 interrogatories to be taken; 08  (5) regulate the course and conduct of the hearing; 09  (6) make a final ruling on the issue. 10 * Sec. 14. AS 28.20.050(a) is amended to read: 11  (a) The provisions of this chapter requiring deposit of security and suspension 12 for failure to deposit security apply to the driver and owner of a vehicle subject to 13 registration under the laws of this state that is involved in any manner in an accident 14 in this state resulting in bodily injury to or death of a person or damage to the property 15 of any one person exceeding $1,000 [$500]. 16 * Sec. 15. AS 28.20.050(e) is amended to read: 17  (e) A peace officer investigating an accident that results in bodily injury to or 18 the death of a person or damage to the property of a person exceeding $1,000 [$500] 19 shall inform persons involved in the accident in writing of the requirements of this 20 chapter as they apply to suspension of an operator's license or driving privileges. 21 * Sec. 16. AS 28.20.100(c) is amended to read: 22  (c) If the department evaluates the injuries or damage to a minor in an amount 23 not more than $1,000 [$500], the department may accept, for the purposes of this 24 chapter only, evidence of a release from liability executed by a natural or legal 25 guardian on behalf of the minor without court approval. 26 * Sec. 17. AS 28.20.230(a) is amended to read: 27  (a) The provisions of this chapter requiring the deposit of proof of financial 28 responsibility for the future apply to persons who are convicted of or forfeit bail for 29 certain offenses under motor vehicle laws or who, by ownership or operation of a 30 vehicle of a type subject to registration under AS 28.10, are involved in an accident 31 in this state that results in bodily injury or death of a person or damage to the property 01 of any one person exceeding $1,000 [$500]. 02 * Sec. 18. AS 28.20.260(a) is amended to read: 03  (a) Upon receipt by the department of the report of an accident resulting in 04 bodily injury or death, or property damage to any one person exceeding $1,000 [$500], 05 the department shall suspend the license of the driver of a motor vehicle involved in 06 the accident unless the driver or owner 07  (1) has previously furnished or immediately furnishes security required 08 by this chapter, or is excepted from furnishing security under AS 28.20.060; [,] and 09  (2) maintains proof of financial responsibility for three years following 10 the accident. 11 * Sec. 19. AS 28.22.021 is amended to read: 12  Sec. 28.22.021. REQUIREMENT OF PROOF OF MOTOR VEHICLE 13 LIABILITY INSURANCE. The owner or operator of a motor vehicle required to have 14 motor vehicle liability insurance that complies with this chapter or a certificate of 15 self-insurance that complies with AS 28.20.400, shall show proof of this insurance 16 when that person is involved in an accident that results in bodily injury to or death of 17 a person, or damage to the property of a person exceeding $1,000 [$500]. 18 * Sec. 20. AS 28.22.041(a) is amended to read: 19  (a) If [EXCEPT AS PROVIDED IN (h) OF THIS SECTION, IF] a person 20 fails to provide proof required under AS 28.22.021 and 28.22.031, the department shall 21 suspend the driver's license of that person for the following periods: 22  (1) not less than 90 days if, within the preceding 10 years, the person 23 has not had a driver's license suspended for violation of AS 28.22.011 or former 24 AS 28.22.200; 25  (2) not less than one year if, within the preceding 10 years, the person 26 has had a driver's license suspended one or more times for violation of AS 28.22.011 27 or former AS 28.22.200. 28 * Sec. 21. AS 28.35.080(a) is amended to read: 29  (a) The driver of a vehicle involved in an accident resulting in bodily injury 30 to or death of a person or total property damage to an apparent extent of $1,000 [$500] 31 or more shall immediately by the quickest means of communication give notice of the 01 accident to the local police department if the accident occurs within a municipality, 02 otherwise to the Department of Public Safety. 03 * Sec. 22. AS 28.35.080(b) is amended to read: 04  (b) The driver of a vehicle involved in an accident resulting in bodily injury 05 to or death of a person or total property damage to an apparent extent of $1,000 [$500] 06 or more shall, within 10 days after the accident, forward a written report of the 07 accident to the Department of Public Safety and to the local police department if the 08 accident occurs within a municipality. A report is not required under this subsection 09 if the accident is investigated by a peace officer. 10 * Sec. 23. AS 29.10.200 is amended by adding a new paragraph to read: 11  (53) AS 29.35.495 (police protection service areas) 12 * Sec. 24. AS 29.35 is amended by adding a new section to article 7 to read: 13  Sec. 29.35.495. POLICE PROTECTION SERVICE AREAS. (a) The 14 residents of an area in a unified municipality may file a petition with the municipal 15 clerk for formation of a police protection service area for services to be provided by 16 the Department of Public Safety if the area is 17  (1) contiguous; and 18  (2) includes at least 50 residents or three percent of the municipal 19 population, whichever is greater. 20  (b) The petition form shall be supplied by the clerk at the request of a voter. 21 The petition must describe the boundaries of the proposed service area and the 22 additional police protection services to be provided by the Department of Public Safety 23 in the area. It shall be signed by a number of voters residing in the proposed service 24 area equal to at least 10 percent of the number of residents in the area who voted in 25 the last regular election. 26  (c) Upon receipt of a petition that meets the requirements of (a) of this section, 27 the municipal clerk shall submit the petition to the commissioner of public safety. 28 Within 30 days after receipt of the petition the commissioner shall notify the clerk of 29 what the estimated total cost of providing the services in the proposed service area 30 each month will be for a three-year period. The estimate shall be based on the direct 31 costs of troopers to be assigned to the area. If a trooper is expected to routinely cover 01 an area larger than the proposed service area, the cost of that trooper shall be prorated 02 proportionally to the amount of duty time spent within the service area. In addition 03 to the direct costs of troopers, the estimate shall include an amount to cover 04 administrative costs incurred by the department not to exceed 15 percent of the direct 05 costs. The sum of the direct costs and administrative costs equals the estimated total 06 cost for purposes of this section. 07  (d) Upon receipt by the clerk of the estimated total cost prepared by the 08 commissioner of public safety under (c) of this section, during the next regular or 09 special election held in the unified municipality the question of forming the proposed 10 police protection service area and of levying assessments to cover that estimated total 11 cost, plus costs of collection incurred by the municipality not to exceed four percent 12 of the estimated total cost, shall be placed before the voters residing in the proposed 13 service area. If the question is approved by a majority of those voting on the question, 14 the service area is formed and the commissioner of public safety shall provide the 15 additional services in that area. 16  (e) The governing body shall levy assessments in the service area to finance 17 the additional police protection services in an amount equal to the estimated total cost 18 provided by the commissioner of public safety plus the amount for administrative or 19 other costs incurred by the unified municipality approved by the voters. Payments 20 shall be made to the commissioner within 60 days of receipt of assessments by the 21 municipality. The municipality may retain from assessments the amount levied for 22 administrative or other costs incurred by the municipality. 23  (f) At least once every three years an election shall be held by the unified 24 municipality in a police protection service area formed under this section on the 25 question of continuation of the service area. The commissioner of public safety shall 26 submit a revised notice of the estimated total cost of providing the services during the 27 next three years prepared in accordance with (c) of this section for inclusion with the 28 question, and the municipality shall indicate the amount for costs of collection incurred 29 by the municipality not to exceed four percent of the revised estimated total cost. If 30 the question is not approved by a majority of the residents voting on the question, the 31 service area is dissolved 120 days after certification of the election. If the question is 01 approved, the rate of assessments shall be adjusted accordingly by the municipality. 02  (g) This section applies to unified municipalities, but not to other home rule 03 or general law municipalities. 04 * Sec. 25. AS 33.30.011 is amended to read: 05  Sec. 33.30.011. DUTIES OF COMMISSIONER. The commissioner shall 06  (1) establish, maintain, operate, and control correctional facilities 07 suitable for the custody, care, and discipline of persons charged or convicted of 08 offenses against the state or held under authority of state law; 09  (2) classify prisoners; 10  (3) for persons committed to the custody of the commissioner, establish 11 programs, including furlough programs that are reasonably calculated to 12  (A) protect the public; 13  (B) maintain health; 14  (C) create or improve occupational skills; 15  (D) enhance educational qualifications; 16  (E) support court-ordered restitution; and 17  (F) otherwise provide for the rehabilitation and reformation of 18 prisoners, facilitating their reintegration into society; 19  (4) provide necessary medical services for prisoners in state 20 correctional facilities or to fulfill duties under AS 33.30.071 [WHO ARE 21 COMMITTED BY A COURT TO THE CUSTODY OF THE COMMISSIONER], 22 including examinations for communicable and infectious diseases, if a physician or 23 other health care provider, exercising ordinary skill and care at the time of 24 observation, concludes that 25  (A) a prisoner exhibits symptoms of a serious disease or 26 injury that is curable or may be substantially alleviated; and 27  (B) the potential for harm to the prisoner by reason of delay 28 or denial of care is substantial; 29  (5) provide necessary psychological or psychiatric treatment if a 30 physician or other health care provider, exercising ordinary skill and care at the time 31 of observation, concludes that 01  (A) a prisoner exhibits symptoms of a serious disease or injury 02 that is curable or may be substantially alleviated; and 03  (B) the potential for harm to the prisoner by reason of delay or 04 denial of care is substantial; and 05  (6) establish minimum standards for sex offender treatment programs 06 offered to persons who are committed to the custody of the commissioner. 07 * Sec. 26. AS 36.30 is amended by adding a new section to read: 08  Sec. 36.30.085. LEASE EXTENSIONS AUTHORIZED. (a) Notwithstanding 09 AS 36.30.080, the department may extend for up to a maximum of 10 years a real 10 property lease that is entered into under this chapter or was entered into under former 11 AS 37.05.220 - 37.05.280 and that is in existence as of June 30, 1994 if a minimum 12 cost savings of 13  (1) 10 percent can be achieved on the rent due under the lease; or 14  (2) five percent can be achieved on the rent due under the lease and the 15 lessor agrees to make modifications to the leased real property to bring the real 16 property into compliance with the requirements of 42 U.S.C. 12101 - 12213 17 (Americans with Disabilities Act of 1990). 18  (b) The cost savings under (a) of this section shall be calculated on the 19 remaining term of the lease and any renewals, including extensions allowed under (a) 20 of this section. 21  (c) In accordance with AS 36.30.005, the Board of Regents may extend leases 22 for the University of Alaska to the same extent as the department under this section. 23  (d) In accordance with AS 36.30.030, the court system may extend leases for 24 the court system to the same extent as the department under this section. 25 * Sec. 27. AS 36.30.320(a) is amended to read: 26  (a) A procurement for (1) supplies, services, or construction that does not 27 exceed an aggregate dollar amount of $25,000, or (2) lease of space that does not 28 exceed 2,500 square feet with a monthly lease amount that does not exceed $5,000, 29 may be made in accordance with regulations adopted by the commissioner for small 30 procurements. 31 * Sec. 28. AS 37.07.040 is amended to read: 01  Sec. 37.07.040. OFFICE OF MANAGEMENT AND BUDGET. The Alaska 02 office of management and budget shall 03  (1) assist the governor in the preparation and explanation of the 04 proposed comprehensive program and financial plan, including the coordination and 05 analysis of state agency goals and objectives, plans, and budget requests; 06  (2) prepare for submission to the governor an annually updated 07 [SIX-YEAR] capital improvements program in fiscal year format covering the 08 current fiscal year plus three succeeding fiscal years and the proposed capital 09 improvements budget for the coming fiscal year, the latter to include individual project 10 justification with documentation of estimated project cost; 11  (3) develop procedures to produce the information needed for effective 12 policy decision making, including procedures to provide for the dissemination of 13 information about plans, programs, and budget requests to be included in the annual 14 budget and opportunity for public review and comment during the period of budget 15 preparation; 16  (4) assist state agencies in their statement of goals and objectives, 17 preparation of plans, budget requests, and reporting of program performance; all 18 documents forwarded by the office to a state agency containing instructions for the 19 preparation of program plans and budget requests and the reporting of program 20 performance are public information after the date they are forwarded; 21  (5) administer its responsibilities under the program execution 22 provisions of this chapter so that the policy decisions and budget determinations of the 23 governor and the legislature are implemented; 24  (6) provide the legislative finance division with the budget information 25 it may request; 26  (7) provide the legislative finance division with an advance copy of the 27 governor's budget workbooks by the first Monday in January of each year, except that 28 following a gubernatorial election year the advance copy shall be provided by the 29 second Monday in January; 30  (8) prepare the proposed capital improvements budget for the coming 31 fiscal year evaluating both state and local requests from the standpoint of need, equity, 01 and priorities of the jurisdiction; other factors such as project amounts, population, 02 local financial match, federal funds being used for local match, municipality or 03 unincorporated community acceptance of the facility, and all associated costs of the 04 facility may be considered. 05 * Sec. 29. AS 37.07.060 is amended by adding a new subsection to read: 06  (c) The reporting requirements of (b)(3) of this section are modified with 07 respect to the Department of Transportation and Public Facilities. The governor's 08 report must contain, for that department, the governor's construction program for the 09 succeeding construction season, budget recommendations for the succeeding fiscal 10 year, and capital improvements construction program for the succeeding six fiscal 11 years, which must include 12  (1) a general description of each project and the source of financing for 13 the project; and 14  (2) the information required by (b)(3)(B) - (H) of this section. 15 * Sec. 30. AS 44.42.050(a) is amended to read: 16  (a) The commissioner shall develop annually a comprehensive, intermodal, 17 long-range transportation priority list and plan for the state consistent with 18 applicable federal laws. [IN DEVELOPING AND REVISING THE STATE PLAN, 19 THE COMMISSIONER SHALL CONSIDER MEANS AND COSTS OF 20 IMPROVING EXISTING MODES AND FACILITIES, STATE AND FEDERAL 21 SUBSIDIES, AND THE COSTS AND BENEFITS OF NEW TRANSPORTATION 22 MODES AND FACILITIES. THE COMMISSIONER SHALL ALSO CONSIDER 23 THE RECOMMENDATION OF THE ALASKA TRANSPORTATION PLANNING 24 COUNCIL.] The plan shall be submitted to the governor for review and approval and 25 submitted by the governor to the legislature. 26 * Sec. 31. AS 44.42.050(b) is amended to read: 27  (b) In developing and revising the plan, the commissioner shall seek public 28 review and evaluation consistent with applicable federal statutes and regulations 29 and by any reasonable means and may 30  (1) consult and cooperate with officials and representatives of the 31 federal government, other governments, interstate commissions and authorities, local 01 agencies and authorities, interested corporations and other organizations concerning 02 problems affecting transportation in the state; and 03  (2) request from an agency or other unit of the state government or of 04 a political subdivision of it, or from a public authority, the assistance and data that 05 may be necessary to enable the commissioner to carry out responsibilities under this 06 section; every such entity shall provide the assistance and data requested. 07 * Sec. 32. AS 46.03 is amended by adding a new section to read: 08  Sec. 46.03.026. ON-SITE WATER AND SEWER SYSTEM CERTIFICATION 09 AND AUDIT PROGRAM. (a) Notwithstanding any provision of this chapter to the 10 contrary, for bank loans for homes in this state, the department may establish, by 11 regulation, a program to delegate the review and certification of on-site drinking water 12 and sewer systems. Under standards adopted by the department by regulation, the 13 department may delegate the review and certification to engineers who are registered 14 under AS 08.48. 15  (b) If the department establishes a program under (a) of this section, the 16 department shall establish an audit system for the department to monitor and review 17 a statistically significant number of systems certified under that program. An audit 18 must determine compliance with departmental standards for design, installation, and 19 operation in effect at the time of the certification. 20  (c) If the department establishes a program under (a) of this section, the 21 department shall, by regulation, establish fees for services sufficient to make the 22 program self-supporting. 23 * Sec. 33. AS 46.03.720 is amended by adding a new subsection to read: 24  (d) Notwithstanding (a) of this section, department review and approval of 25 plans is not required for the functions specified in (a) of this section if 26  (1) the sewerage system or treatment works, or a part of either, is 27 located in a community or major military facility that has the power or legal authority 28 to review and approve sewerage system or treatment works plans; 29  (2) the community or major military facility has established ordinances 30 or other law to regulate domestic sewerage that the department has determined are 31 substantially equivalent to department standards in effect at the time of the 01 determination; 02  (3) the community or major military facility has employed an engineer 03 registered under AS 08.48 who will review and approve domestic sewerage plans 04 under those ordinances or other law; 05  (4) the community or major military facility commits adequate funding 06 or other resources to administer plan review and approvals under this subsection; and 07  (5) the department and the community or major military facility have 08 entered into an agreement under this subsection for delegation of the review and 09 approval of plans under the standards described in this subsection. 10 * Sec. 34. AS 28.10.108(b) and AS 28.22.041(h) are repealed. 11 * Sec. 35. TRANSITION. Notwithstanding sec. 37 of this Act, an agency of the state that 12 has regulation adoption authority or that is authorized by this Act to adopt regulations, may 13 proceed to adopt regulations necessary to implement that agency's respective provisions in this 14 Act. The regulations take effect under AS 44.62 (Administrative Procedure Act), but not 15 before July 1, 1994. 16 * Sec. 36. Section 35 of this Act takes effect immediately under AS 01.10.070(c). 17 * Sec. 37. Except as provided in sec. 36 of this Act, this Act takes effect July 1, 1994.