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SB 365 AM: "An Act amending, and repealing laws providing for state agency functions and services related to transportation and capital improvement planning, workers' compensation, motor vehicles and motor vehicle insurance, medical care for prisoners, state building leases, and review and approval of water and sewer systems, for the purpose of reducing state government expenditures; and providing for an effective date."

00SENATE BILL NO. 365 am 01 "An Act amending, and repealing laws providing for state agency functions and 02 services related to transportation and capital improvement planning, workers' 03 compensation, motor vehicles and motor vehicle insurance, medical care for 04 prisoners, state building leases, and review and approval of water and sewer 05 systems, for the purpose of reducing state government expenditures; and providing 06 for an effective date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. AS 19.10.140 is amended to read: 09  Sec. 19.10.140. LONG-RANGE PROGRAM FOR HIGHWAY 10 CONSTRUCTION [AND MAINTENANCE]. The [GOVERNOR SHALL REQUIRE 11 THE] department shall [TO] establish a continuing, long-range program for highway 12 construction [AND MAINTENANCE]. The program must annually project proposed 13 construction [AND MAINTENANCE] of highways in a priority format for not less 14 than the next succeeding five years. A statement of the program shall be submitted

01 by the governor to the legislature annually [, AND THE LONG-RANGE PROGRAM 02 SHALL INCLUDE IN DETAIL THE PROGRAM PREPARED UNDER 03 AS 19.10.150]. 04 * Sec. 2. AS 19.10.150 is amended to read: 05  Sec. 19.10.150. CONSTRUCTION PROGRAM. Before February 2 of each 06 year, the department shall prepare a statement showing what construction work has 07 been requested and proposed and may be undertaken by the department during the 08 following construction season. The statement must set out [FORTH A GENERAL 09 ITEMIZATION OF] the estimated cost for each project and the total estimates of all 10 projects. [THE DEPARTMENT SHALL ADOPT A CONSTRUCTION PROGRAM 11 WHICH MUST INCLUDE THE PROJECTS TO BE UNDERTAKEN BY IT 12 DURING THE FOLLOWING CONSTRUCTION SEASON AND MUST ESTABLISH 13 PROJECT PRIORITIES.] The department may increase, decrease, amend, or revise 14 the construction program from time to time as circumstances warrant. 15 * Sec. 3. AS 19.10.160 is amended to read: 16  Sec. 19.10.160. STANDARD DRAWINGS [PLANS] AND 17 SPECIFICATIONS. The department may [SHALL] prepare and adopt uniform 18 standard drawings [PLANS] and specifications for the establishment and [,] 19 construction [, AND MAINTENANCE] of highways in the state. The department may 20 amend the drawings [PLANS] and specifications as it considers advisable. [THE 21 STANDARDS MUST CONFORM AS CLOSELY AS PRACTICABLE TO THOSE 22 ADOPTED BY THE AMERICAN ASSOCIATION OF STATE HIGHWAY AND 23 TRANSPORTATION OFFICIALS.] 24 * Sec. 4. AS 23.30.041(e) is amended to read: 25  (e) An employee shall be eligible for benefits under this section upon the 26 employee's written request and by having a physician predict that the employee will 27 have permanent physical capacities that are less than the physical demands of the 28 employee's job as described in the United States Department of Labor's "Selected 29 Characteristics of Occupations Defined in the Revised Dictionary of Occupational 30 Titles" for 31  (1) the employee's job at the time of injury; or

01  (2) other jobs that exist in the labor market that the employee has held 02 or received training for within 10 years before the injury or that the employee has held 03 following the injury for a period long enough to obtain the skills to compete in the 04 labor market, according to specific vocational preparation codes as described in the 05 United States Department of Labor's "Selected Characteristics of Occupations Defined 06 in the Revised Dictionary of Occupational Titles." 07 * Sec. 5. AS 23.30.095(k) is amended to read: 08  (k) In the event of a medical dispute regarding determinations of causation, 09 medical stability, ability to enter a reemployment plan, degree of impairment, 10 functional capacity, the amount and efficacy of the continuance of or necessity of 11 treatment, or compensability between the employee's attending physician and the 12 employer's independent medical evaluation, a second independent medical evaluation 13 shall be conducted by a physician or physicians selected by the board or its designee 14 from a list established and maintained by the board and its designee. The cost of the 15 examination and medical report shall be paid by the employer. The report of the 16 independent medical examiner shall be furnished to the board and to the parties within 17 14 days after the examination is concluded. A person may not seek damages from an 18 independent medical examiner caused by the rendering of an opinion or providing 19 testimony under this subsection, except in the event of fraud or gross incompetence. 20 * Sec. 6. AS 23.30.190(b) is amended to read: 21  (b) All determinations of the existence and degree of permanent impairment 22 shall be made strictly and solely under the whole person determination as set out in 23 the current edition of the American Medical Association Guides to the Evaluation of 24 Permanent Impairment at the time of the impairment rating, except that an 25 impairment rating may not be rounded to the next five percent. The board shall adopt 26 a supplementary recognized schedule for injuries that cannot be rated by use of the 27 American Medical Association Guides. 28 * Sec. 7. AS 28.05.061(c) is amended to read: 29  (c) The commissioner and officers and employees of the department designated 30 by the commissioner shall, upon request, prepare under the seal of the department and 31 deliver, unless otherwise prohibited by law, a certified copy of any record of the

01 department maintained under this title or regulations adopted under this title, charging 02 a fee for each certified copy. A certified copy, or an electronic record certified by 03 the department, is admissible in a proceeding in a court in the same manner as the 04 original document. 05 * Sec. 8. AS 28.05.121 is amended to read: 06  Sec. 28.05.121. GIVING OF NOTICE. When the department is authorized or 07 required to give notice under this title or regulations adopted under this title, unless a 08 different method of giving notice is otherwise expressly provided, notice shall be given 09 by a qualified person, either by personal delivery to the person to be notified or by 10 first class [REGISTERED OR CERTIFIED] mail, [RETURN RECEIPT 11 REQUESTED,] addressed to the person at the address of the person as shown in the 12 electronic records of the department. The giving of notice by mail is considered 13 complete upon placing the notice in a United States Post Office receptacle, with 14 appropriate postage [THE RETURN OF THE RECEIPT OR UPON RETURN OF 15 THE NOTICE AS UNDELIVERABLE, REFUSED, OR UNCLAIMED]. Proof of the 16 giving of notice in either manner may be made by the affidavit of the person giving 17 the notice by personal delivery or by mail, naming the person to whom the notice was 18 given and specifying the time, place, and manner of giving the notice. 19 * Sec. 9. AS 28.05.141(b) is amended to read: 20  (b) A hearing ordered under (a) of this section shall be held telephonically at 21 a time and date set by [AT THE OFFICE OF] the department, except that if the 22 department determines that an in-person hearing is necessary to determine factual 23 issues, the department may order that the hearing be conducted in person at a 24 place, time, and date set by the department [NEAREST TO THE RESIDENCE OF 25 THE PERSON REQUESTING THE HEARING UNLESS THE DEPARTMENT AND 26 THE PERSON AGREE THAT THE HEARING IS TO BE HELD ELSEWHERE]. 27 The department may [SHALL] grant a hearing delay only if the person shows, to the 28 satisfaction of the department, [PRESENTS] good cause for the delay that is beyond 29 the control of the person. If a person fails to appear for the hearing at the time and 30 place stated by the department and if a hearing delay has not been granted, the 31 person's failure to appear is considered a waiver of the hearing and the department

01 may take appropriate action with respect to the person. 02 * Sec. 10. AS 28.10.031(b) is amended to read: 03  (b) A licensed vehicle dealer may issue to the purchaser of a vehicle sold by 04 the dealer a temporary permit to drive the vehicle. A permit is effective for a period 05 not to exceed 60 [30] days. The commissioner shall adopt regulations governing the 06 issuance of permits under this section. 07 * Sec. 11. AS 28.10.108(c) is amended to read: 08  (c) A vehicle subject to registration [AND NOT DESCRIBED IN (b) OF THIS 09 SECTION] shall have its initial registration, and may have its annual registration, 10 renewed in the month of initial registration in the state, subject to the provisions of (f) 11 of this section. 12 * Sec. 12. AS 28.15.166(e) is amended to read: 13  (e) The [NOTWITHSTANDING AS 28.05.141(b), THE] hearing under this 14 section shall be held telephonically at a time and date set by [AT THE OFFICE OF] 15 the department, except that if the department determines that an in-person hearing 16 is necessary to determine factual issues, the department may order that the 17 hearing be conducted in person at a place, time, and date set by the department 18 [NEAREST TO THE RESIDENCE OF THE PERSON REQUESTING THE 19 HEARING UNLESS 20  (1) A DISTRICT COURT JUDGE OR A MAGISTRATE HAS BEEN 21 DESIGNATED AS A HEARING OFFICER IN THE MATTER BY THE 22 COMMISSIONER; OR 23  (2) THE DEPARTMENT AND THE PERSON AGREE THAT THE 24 HEARING IS TO BE HELD ELSEWHERE]. 25 * Sec. 13. AS 28.15.166(f) is amended to read: 26  (f) A review under this section shall be held before a hearing officer 27 designated by the commissioner. [UPON THE CONSENT OF THE 28 ADMINISTRATIVE DIRECTOR OF THE STATE COURT SYSTEM, THE 29 COMMISSIONER MAY DESIGNATE A DISTRICT COURT JUDGE OR A 30 MAGISTRATE TO SERVE AS THE HEARING OFFICER.] The hearing officer shall 31 have authority to

01  (1) administer oaths and affirmations; 02  (2) examine witnesses and take testimony; 03  (3) receive relevant evidence; 04  (4) issue subpoenas, take depositions, or cause depositions or 05 interrogatories to be taken; 06  (5) regulate the course and conduct of the hearing; 07  (6) make a final ruling on the issue. 08 * Sec. 14. AS 28.20.050(a) is amended to read: 09  (a) The provisions of this chapter requiring deposit of security and suspension 10 for failure to deposit security apply to the driver and owner of a vehicle subject to 11 registration under the laws of this state that is involved in any manner in an accident 12 in this state resulting in bodily injury to or death of a person or damage to the property 13 of any one person exceeding $1,000 [$500]. 14 * Sec. 15. AS 28.20.050(e) is amended to read: 15  (e) A peace officer investigating an accident that results in bodily injury to or 16 the death of a person or damage to the property of a person exceeding $1,000 [$500] 17 shall inform persons involved in the accident in writing of the requirements of this 18 chapter as they apply to suspension of an operator's license or driving privileges. 19 * Sec. 16. AS 28.20.100(c) is amended to read: 20  (c) If the department evaluates the injuries or damage to a minor in an amount 21 not more than $1,000 [$500], the department may accept, for the purposes of this 22 chapter only, evidence of a release from liability executed by a natural or legal 23 guardian on behalf of the minor without court approval. 24 * Sec. 17. AS 28.20.230(a) is amended to read: 25  (a) The provisions of this chapter requiring the deposit of proof of financial 26 responsibility for the future apply to persons who are convicted of or forfeit bail for 27 certain offenses under motor vehicle laws or who, by ownership or operation of a 28 vehicle of a type subject to registration under AS 28.10, are involved in an accident 29 in this state that results in bodily injury or death of a person or damage to the property 30 of any one person exceeding $1,000 [$500]. 31 * Sec. 18. AS 28.20.260(a) is amended to read:

01  (a) Upon receipt by the department of the report of an accident resulting in 02 bodily injury or death, or property damage to any one person exceeding $1,000 [$500], 03 the department shall suspend the license of the driver of a motor vehicle involved in 04 the accident unless the driver or owner 05  (1) has previously furnished or immediately furnishes security required 06 by this chapter, or is excepted from furnishing security under AS 28.20.060; [,] and 07  (2) maintains proof of financial responsibility for three years following 08 the accident. 09 * Sec. 19. AS 28.22.021 is amended to read: 10  Sec. 28.22.021. REQUIREMENT OF PROOF OF MOTOR VEHICLE 11 LIABILITY INSURANCE. The owner or operator of a motor vehicle required to have 12 motor vehicle liability insurance that complies with this chapter or a certificate of 13 self-insurance that complies with AS 28.20.400, shall show proof of this insurance 14 when that person is involved in an accident that results in bodily injury to or death of 15 a person, or damage to the property of a person exceeding $1,000 [$500]. 16 * Sec. 20. AS 28.22.041(a) is amended to read: 17  (a) If [EXCEPT AS PROVIDED IN (h) OF THIS SECTION, IF] a person 18 fails to provide proof required under AS 28.22.021 and 28.22.031, the department shall 19 suspend the driver's license of that person for the following periods: 20  (1) not less than 90 days if, within the preceding 10 years, the person 21 has not had a driver's license suspended for violation of AS 28.22.011 or former 22 AS 28.22.200; 23  (2) not less than one year if, within the preceding 10 years, the person 24 has had a driver's license suspended one or more times for violation of AS 28.22.011 25 or former AS 28.22.200. 26 * Sec. 21. AS 28.35.080(a) is amended to read: 27  (a) The driver of a vehicle involved in an accident resulting in bodily injury 28 to or death of a person or total property damage to an apparent extent of $1,000 [$500] 29 or more shall immediately by the quickest means of communication give notice of the 30 accident to the local police department if the accident occurs within a municipality, 31 otherwise to the Department of Public Safety.

01 * Sec. 22. AS 28.35.080(b) is amended to read: 02  (b) The driver of a vehicle involved in an accident resulting in bodily injury 03 to or death of a person or total property damage to an apparent extent of $1,000 [$500] 04 or more shall, within 10 days after the accident, forward a written report of the 05 accident to the Department of Public Safety and to the local police department if the 06 accident occurs within a municipality. A report is not required under this subsection 07 if the accident is investigated by a peace officer. 08 * Sec. 23. AS 33.30.011 is amended to read: 09  Sec. 33.30.011. DUTIES OF COMMISSIONER. The commissioner shall 10  (1) establish, maintain, operate, and control correctional facilities 11 suitable for the custody, care, and discipline of persons charged or convicted of 12 offenses against the state or held under authority of state law; 13  (2) classify prisoners; 14  (3) for persons committed to the custody of the commissioner, establish 15 programs, including furlough programs that are reasonably calculated to 16  (A) protect the public; 17  (B) maintain health; 18  (C) create or improve occupational skills; 19  (D) enhance educational qualifications; 20  (E) support court-ordered restitution; and 21  (F) otherwise provide for the rehabilitation and reformation of 22 prisoners, facilitating their reintegration into society; 23  (4) provide necessary medical services for prisoners in state 24 correctional facilities or to fulfill duties under AS 33.30.071 [WHO ARE 25 COMMITTED BY A COURT TO THE CUSTODY OF THE COMMISSIONER], 26 including examinations for communicable and infectious diseases, if a physician or 27 other health care provider, exercising ordinary skill and care at the time of 28 observation, concludes that 29  (A) a prisoner exhibits symptoms of a serious disease or 30 injury that is curable or may be substantially alleviated; and 31  (B) the potential for harm to the prisoner by reason of delay

01 or denial of care is substantial; 02  (5) provide necessary psychological or psychiatric treatment if a 03 physician or other health care provider, exercising ordinary skill and care at the time 04 of observation, concludes that 05  (A) a prisoner exhibits symptoms of a serious disease or injury 06 that is curable or may be substantially alleviated; and 07  (B) the potential for harm to the prisoner by reason of delay or 08 denial of care is substantial; and 09  (6) establish minimum standards for sex offender treatment programs 10 offered to persons who are committed to the custody of the commissioner. 11 * Sec. 24. AS 36.30 is amended by adding a new section to read: 12  Sec. 36.30.085. LEASE EXTENSIONS AUTHORIZED. (a) Notwithstanding 13 AS 36.30.080, the department may extend for up to a maximum of 10 years a real 14 property lease that is entered into under this chapter or was entered into under former 15 AS 37.05.220 - 37.05.280 and that is in existence as of June 30, 1994 if a minimum 16 cost savings of 17  (1) 10 percent can be achieved on the rent due under the lease; or 18  (2) five percent can be achieved on the rent due under the lease and the 19 lessor agrees to make modifications to the leased real property to bring the real 20 property into compliance with the requirements of 42 U.S.C. 12101 - 12213 21 (Americans with Disabilities Act of 1990). 22  (b) The cost savings under (a) of this section shall be calculated on the 23 remaining term of the lease and any renewals, including extensions allowed under (a) 24 of this section. 25  (c) In accordance with AS 36.30.005, the Board of Regents may extend leases 26 for the University of Alaska to the same extent as the department under this section. 27  (d) In accordance with AS 36.30.030, the court system may extend leases for 28 the court system to the same extent as the department under this section. 29 * Sec. 25. AS 36.30.320(a) is amended to read: 30  (a) A procurement for (1) supplies, services, or construction that does not 31 exceed an aggregate dollar amount of $25,000, or (2) lease of space that does not

01 exceed 2,500 square feet with a monthly lease amount that does not exceed $5,000, 02 may be made in accordance with regulations adopted by the commissioner for small 03 procurements. 04 * Sec. 26. AS 37.07.040 is amended to read: 05  Sec. 37.07.040. OFFICE OF MANAGEMENT AND BUDGET. The Alaska 06 office of management and budget shall 07  (1) assist the governor in the preparation and explanation of the 08 proposed comprehensive program and financial plan, including the coordination and 09 analysis of state agency goals and objectives, plans, and budget requests; 10  (2) prepare for submission to the governor an annually updated 11 [SIX-YEAR] capital improvements program in fiscal year format covering the 12 current fiscal year plus three succeeding fiscal years and the proposed capital 13 improvements budget for the coming fiscal year, the latter to include individual project 14 justification with documentation of estimated project cost; 15  (3) develop procedures to produce the information needed for effective 16 policy decision making, including procedures to provide for the dissemination of 17 information about plans, programs, and budget requests to be included in the annual 18 budget and opportunity for public review and comment during the period of budget 19 preparation; 20  (4) assist state agencies in their statement of goals and objectives, 21 preparation of plans, budget requests, and reporting of program performance; all 22 documents forwarded by the office to a state agency containing instructions for the 23 preparation of program plans and budget requests and the reporting of program 24 performance are public information after the date they are forwarded; 25  (5) administer its responsibilities under the program execution 26 provisions of this chapter so that the policy decisions and budget determinations of the 27 governor and the legislature are implemented; 28  (6) provide the legislative finance division with the budget information 29 it may request; 30  (7) provide the legislative finance division with an advance copy of the 31 governor's budget workbooks by the first Monday in January of each year, except that

01 following a gubernatorial election year the advance copy shall be provided by the 02 second Monday in January; 03  (8) prepare the proposed capital improvements budget for the coming 04 fiscal year evaluating both state and local requests from the standpoint of need, equity, 05 and priorities of the jurisdiction; other factors such as project amounts, population, 06 local financial match, federal funds being used for local match, municipality or 07 unincorporated community acceptance of the facility, and all associated costs of the 08 facility may be considered. 09 * Sec. 27. AS 37.07.060 is amended by adding a new subsection to read: 10  (c) The reporting requirements of (b)(3) of this section are modified with 11 respect to the Department of Transportation and Public Facilities. The governor's 12 report must contain, for that department, the governor's construction program for the 13 succeeding construction season, budget recommendations for the succeeding fiscal 14 year, and capital improvements construction program for the succeeding six fiscal 15 years, which must include 16  (1) a general description of each project and the source of financing for 17 the project; and 18  (2) the information required by (b)(3)(B) - (H) of this section. 19 * Sec. 28. AS 44.42.050(a) is amended to read: 20  (a) The commissioner shall develop annually a comprehensive, intermodal, 21 long-range transportation priority list and plan for the state consistent with 22 applicable federal laws. [IN DEVELOPING AND REVISING THE STATE PLAN, 23 THE COMMISSIONER SHALL CONSIDER MEANS AND COSTS OF 24 IMPROVING EXISTING MODES AND FACILITIES, STATE AND FEDERAL 25 SUBSIDIES, AND THE COSTS AND BENEFITS OF NEW TRANSPORTATION 26 MODES AND FACILITIES. THE COMMISSIONER SHALL ALSO CONSIDER 27 THE RECOMMENDATION OF THE ALASKA TRANSPORTATION PLANNING 28 COUNCIL.] The plan shall be submitted to the governor for review and approval and 29 submitted by the governor to the legislature. 30 * Sec. 29. AS 44.42.050(b) is amended to read: 31  (b) In developing and revising the plan, the commissioner shall seek public

01 review and evaluation consistent with applicable federal statutes and regulations 02 and by any reasonable means and may 03  (1) consult and cooperate with officials and representatives of the 04 federal government, other governments, interstate commissions and authorities, local 05 agencies and authorities, interested corporations and other organizations concerning 06 problems affecting transportation in the state; and 07  (2) request from an agency or other unit of the state government or of 08 a political subdivision of it, or from a public authority, the assistance and data that 09 may be necessary to enable the commissioner to carry out responsibilities under this 10 section; every such entity shall provide the assistance and data requested. 11 * Sec. 30. AS 46.03 is amended by adding a new section to read: 12  Sec. 46.03.026. ON-SITE WATER AND SEWER SYSTEM CERTIFICATION 13 AND AUDIT PROGRAM. (a) Notwithstanding any provision of this chapter to the 14 contrary, for bank loans for homes in this state, the department may establish, by 15 regulation, a program to delegate the review and certification of on-site drinking water 16 and sewer systems. Under standards adopted by the department by regulation, the 17 department may delegate the review and certification to engineers who are registered 18 under AS 08.48. 19  (b) If the department establishes a program under (a) of this section, the 20 department shall establish an audit system for the department to monitor and review 21 a statistically significant number of systems certified under that program. An audit 22 must determine compliance with departmental standards for design, installation, and 23 operation in effect at the time of the certification. 24  (c) If the department establishes a program under (a) of this section, the 25 department shall, by regulation, establish fees for services sufficient to make the 26 program self-supporting. 27 * Sec. 31. AS 46.03.720 is amended by adding a new subsection to read: 28  (d) Notwithstanding (a) of this section, department review and approval of 29 plans is not required for the functions specified in (a) of this section if 30  (1) the sewerage system or treatment works, or a part of either, is 31 located in a community or major military facility that has the power or legal authority

01 to review and approve sewerage system or treatment works plans; 02  (2) the community or major military facility has established ordinances 03 or other law to regulate domestic sewerage that the department has determined are 04 substantially equivalent to department standards in effect at the time of the 05 determination; 06  (3) the community or major military facility has employed an engineer 07 registered under AS 08.48 who will review and approve domestic sewerage plans 08 under those ordinances or other law; 09  (4) the community or major military facility commits adequate funding 10 or other resources to administer plan review and approvals under this subsection; and 11  (5) the department and the community or major military facility have 12 entered into an agreement under this subsection for delegation of the review and 13 approval of plans under the standards described in this subsection. 14 * Sec. 32. AS 28.10.108(b) and AS 28.22.041(h) are repealed. 15 * Sec. 33. TRANSITION. Notwithstanding sec. 35 of this Act, an agency of the state that 16 has regulation adoption authority or that is authorized by this Act to adopt regulations, may 17 proceed to adopt regulations necessary to implement that agency's respective provisions in this 18 Act. The regulations take effect under AS 44.62 (Administrative Procedure Act), but not 19 before July 1, 1994. 20 * Sec. 34. Section 33 of this Act takes effect immediately under AS 01.10.070(c). 21 * Sec. 35. Except as provided in sec. 34 of this Act, this Act takes effect July 1, 1994.