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CSHB 40(FIN): "An Act reorganizing certain departments in the executive branch of state government and relating to their duties; eliminating and amending certain duties and programs in the executive branch; adjusting the membership of certain multi-member bodies; and providing for an effective date."

00CS FOR HOUSE BILL NO. 40(FIN) 01 "An Act reorganizing certain departments in the executive branch of state 02 government and relating to their duties; eliminating and amending certain duties 03 and programs in the executive branch; adjusting the membership of certain multi- 04 member bodies; and providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 09.25.110(e) is amended to read: 07  (e) Notwithstanding other provisions of this section to the contrary, the Bureau 08 of Vital Statistics and [,] the library archives in the Department of Education and 09 Child Development [, AND THE DIVISION OF BANKING, SECURITIES, AND 10 CORPORATIONS IN THE DEPARTMENT OF COMMERCE AND ECONOMIC 11 DEVELOPMENT] may continue to charge the same fees that they were [ARE] 12 charging on September 25, 1990 , for performing record searches, and may increase the 13 fees as necessary to recover agency expenses on the same basis that was [IS] used by 14 the agency immediately before September 25, 1990. Notwithstanding other

01 provisions of this section to the contrary, the division of banking, securities, and 02 corporations in the Department of Community and Economic Development may 03 continue to charge the same fees that the former Department of Commerce and 04 Economic Development was charging on the effective date of this bill section for 05 performing record searches and may increase the fees as necessary to recover 06 agency expenses on the same basis that was used by the former Department of 07 Commerce and Economic Development immediately before the effective date of 08 this bill section. 09 * Sec. 2. AS 09.65.170(c)(2) is amended to read: 10  (2) "regional development organization" has the meaning given in 11 AS 44.33.895 [AS 44.47.900]. 12 * Sec. 3. AS 11.61.195(a) is amended to read: 13  (a) A person commits the crime of misconduct involving weapons in the 14 second degree if the person knowingly 15  (1) possesses a firearm during the commission of an offense under 16 AS 11.71.010 - 11.71.040; 17  (2) violates AS 11.61.200(a)(1) and is within the grounds of or on a 18 parking lot immediately adjacent to 19  (A) a public or private preschool, elementary, junior high, or 20 secondary school without the permission of the chief administrative officer of 21 the school or district or the designee of the chief administrative officer; or 22  (B) a center, other than a private residence, licensed under 23 AS 14.37, AS 47.33 , or AS 47.35 or recognized by the federal government for 24 the care of children; or 25  (3) discharges a firearm at or in the direction of 26  (A) a building with reckless disregard for a risk of physical 27 injury to a person; or 28  (B) a dwelling. 29 * Sec. 4. AS 11.61.220(a) is amended to read: 30  (a) A person commits the crime of misconduct involving weapons in the fifth 31 degree if the person

01  (1) knowingly possesses a deadly weapon, other than an ordinary 02 pocket knife or a defensive weapon, that is concealed on the person; 03  (2) knowingly possesses a loaded firearm on the person in any place 04 where intoxicating liquor is sold for consumption on the premises; 05  (3) being an unemancipated minor under 16 years of age, possesses a 06 firearm without the consent of a parent or guardian of the minor; 07  (4) knowingly possesses a firearm 08  (A) within the grounds of or on a parking lot immediately 09 adjacent to a center, other than a private residence, licensed under AS 14.37, 10 AS 47.33 , or AS 47.35 or recognized by the federal government for the care 11 of children; or 12  (B) within a 13  (i) courtroom or office of the Alaska Court System; or 14  (ii) courthouse that is occupied only by the Alaska Court 15 System and other justice-related agencies; 16  (C) within a domestic violence or sexual assault shelter that 17 receives funding from the state; or 18  (5) possesses or transports a switchblade or a gravity knife. 19 * Sec. 5. AS 14.20.165 is amended to read: 20  Sec. 14.20.165. Restoration of tenure rights. A teacher who held tenure 21 rights and who was retired due to disability under AS 14.25.130, but whose disability 22 (1) has been removed, and the removal of that disability is certified by a competent 23 physician following a physical or mental examination, or (2) has been compensated for 24 by rehabilitation or other appropriate restorative education or training, and that 25 rehabilitation or restoration to health has been certified by the division of vocational 26 rehabilitation of the Department of Labor and Workforce Development 27 [DEPARTMENT], shall be restored to full tenure rights in the district from which the 28 teacher was retired, at such time as an opening for which the teacher is qualified 29 becomes available. 30 * Sec. 6. AS 14.35.020(b) is amended to read: 31  (b) When required by any of the Acts described in AS 14.35.010 , the board

01 shall 02  (1) prepare, submit, and supervise the administration of the plans for 03 vocational education [AND VOCATIONAL REHABILITATION]; 04  (2) select a state director of vocational education; 05  (3) establish the minimum qualifications for teachers, supervisors, or 06 directors; 07  (4) determine the prorated basis on which money shall be available for 08 the salary and necessary travel expenses of the state director of vocational education; 09  (5) consider the advice of the Alaska Human Resource Investment 10 Council established by AS 23.15.550 [AS 44.19.620] regarding employment training 11 needs and advise that council in the development of vocational education programs. 12 * Sec. 7. AS 14 is amended by adding a new chapter to read: 13 Chapter 37. Licensure of Child Care Facilities. 14  Sec. 14.37.005. Purpose; applicability. (a) The purpose of this chapter is 15 to establish and maintain standard levels for services offered to children in child care 16 facilities. The legislature recognizes the responsibility of parents to select and monitor 17 caregivers for their children in order to ensure a reasonably safe and developmentally 18 appropriate child care environment. The child care licensing procedures in this chapter 19 are intended to reduce predictable risk of harm to children and to provide support 20 services to those providing child care services. 21  (b) This chapter and regulations adopted under this chapter apply to facilities 22  (1) for which licensure is required by or under AS 14.37.015; or 23  (2) that are exempt under AS 14.37.015 from licensure but for which 24 a license is issued under AS 14.37.015(c). 25  Sec. 14.37.010. Powers of department. (a) The department may 26  (1) license and supervise child care facilities; 27  (2) investigate applicants, licensees, and persons that the department 28 reasonably believes are operating a facility without a license or certification in 29 violation of this chapter; 30  (3) adopt regulations to implement the provisions of this chapter, 31 including regulations establishing certification and licensure procedures, standards, and

01 fees; establishing requirements for operation of facilities licensed under this chapter; 02 and distinguishing between types of child care facilities; 03  (4) enter into agreements with private entities, municipalities, or 04 individuals to investigate and make recommendations to the department for the 05 licensing and supervision of child care facilities under procedures and standards of 06 operation established by the department. 07  (b) The department shall, within 90 days after receiving a written request that 08 it do so, delegate its powers relating to child care facilities under this chapter to a 09 municipality that has adopted an ordinance providing for child care licensing under 10 home rule powers under AS 29.10.010 or as authorized under AS 29.35.200 - 11 29.35.210. A municipality to which these powers have been delegated may adopt, by 12 ordinance, additional requirements for child care facilities operating within its 13 boundaries if the requirements meet or exceed the requirements adopted by the 14 department. 15  Sec. 14.37.015. License required; exemptions. (a) A person may not operate 16 a child care facility without a license issued under this chapter unless that facility is 17 exempt from licensure. The following facilities are exempt: 18  (1) a facility in which child care is regularly provided and each child's 19 parent is on the premises within reasonable proximity and accessibility to the child; 20  (2) a facility located on a United States Department of Defense or 21 United States Coast Guard installation that is located on federal property; 22  (3) a recreational program that children are allowed to attend and in 23 which the program assumes no responsibility for care of the children; 24  (4) a daytime therapeutic program of supervised, educational, and 25 rehabilitative services for children with special needs or behavioral problems; 26  (5) a program that is primarily educational and that 27  (A) is certified as a pre-elementary school under department 28 regulations adopted under AS 14.07.020; 29  (B) serves children three years of age or older and is exempt 30 from the department pre-elementary school regulations; or 31  (C) is operated as a headstart preschool that is required to meet

01 the standards established under 42 U.S.C. 9836a; 02  (6) a temporary facility providing care for less than five continuous 03 weeks; 04  (7) a facility regularly providing child care to four or fewer children 05 unrelated to the caregiver; 06  (8) a facility in which the caregiver is a relative of all of the children. 07  (b) In addition to facilities that, under this section, are exempt from licensure, 08 the department, by regulation, may provide for additional exemptions that the 09 department considers appropriate. 10  (c) A person may apply for a license for a facility that is exempt from 11 licensure under this section. The department may issue a license to an applicant under 12 this subsection if the applicant meets the requirements of this chapter and regulations 13 adopted under this chapter. 14  Sec. 14.37.017. Application for license. (a) Application for a license to 15 operate a child care facility must be made to the department on a form provided by 16 the department and must be accompanied by all applicable fees established by the 17 department under AS 14.37.010(a)(3). 18  (b) An application submitted under this section must contain at least the 19 following information: 20  (1) the name and address of the applicant and, if the applicant is a 21 corporation, partnership, association, or another form of organization, the name, 22 address, and title of each individual who has an ownership or management interest in 23 the facility; if the applicant is an individual, the application must include the name, 24 age, and driver's license number, if any, of each member of the individual's 25 household; 26  (2) the name, physical location, and mailing address of the facility for 27 which the license is sought; 28  (3) the name and address of the administrator of the facility, if any; 29  (4) evidence that the administrator is an adult with sufficient 30 experience, training, or education to fulfill the duties of an administrator; 31  (5) a release for the administrator and for each other person who is 16

01 years of age or older, as specified by the department by regulation, who will have 02 contact with individuals served by the facility authorizing the department to review all 03 federal, state, and municipal criminal justice information, whether of this state, of a 04 municipality of this state, or of another jurisdiction, medical records, licensing records, 05 and protective services records, identified in regulations adopted under this chapter, 06 that are relevant to the person who is the subject of the release; 07  (6) the number of individuals that will be served in the facility; 08  (7) the type of facility for which the license is sought; 09  (8) copies of all inspection reports and approvals required by state fire 10 prevention and environmental health and safety authorities for operation of the facility, 11 including any variances granted by these authorities; 12  (9) a plan of operation, as required by the department by regulation; 13  (10) a staffing plan that describes the number of people who will work 14 at the facility, staff qualifications, a description of each person's responsibilities, and 15 a supervision schedule for the children in care that meets the requirements established 16 by the department by regulation; 17  (11) evidence that the applicant has completed orientation or training 18 required by the department by regulation; and 19  (12) other information required by the department, by regulation, in 20 order to monitor compliance with this chapter and regulations adopted under this 21 chapter. 22  Sec. 14.37.020. Provisional license; biennial license. (a) The department 23 shall issue a provisional license to a new facility that applies under AS 14.37.017 if, 24 after inspection and investigation, the department determines that the application and 25 plan of operation for the facility meet the requirements of this chapter and regulations 26 adopted under this chapter. A provisional license is valid for a period not to exceed 27 one year. The department may extend a provisional license for one additional period 28 not to exceed one year. 29  (b) Before expiration of a provisional license issued under (a) of this section, 30 the department shall inspect and investigate the facility in order to determine whether 31 the facility is operating under the provisional license in compliance with this chapter

01 and applicable regulations. 02  (c) Before expiration of a provisional license, the department shall issue a 03 biennial license for the facility if (1) after inspection and investigation under (b) of this 04 section, the department finds that the facility is operating in compliance with and 05 meets the licensure requirements of this chapter and regulations adopted under this 06 chapter; (2) none of the grounds for revocation set out in AS 14.37.130(a)(2) exist; and 07 (3) all applicable fees have been paid. The department shall prepare a summary report 08 of its findings and recommendations for issuance of a biennial license. 09  (d) The issuance of a license by the department does not obligate the 10 department to support the facility financially. 11  Sec. 14.37.025. Denial of license; right to appeal. (a) If the department 12 denies an application for a license or decides not to issue a biennial license, the 13 department shall hand deliver to the prospective licensee, or mail to the prospective 14 licensee by certified mail, return receipt requested, a notice of denial of licensure. The 15 notice must contain a summary of the department's reasons for denial of the license 16 and a form for requesting a hearing under (b) of this section. 17  (b) A prospective licensee who was denied licensure may appeal the 18 department's decision by requesting a hearing, on the form provided by the 19 department, within 15 days after receipt of the notice of denial of licensure. 20  Sec. 14.37.027. Variances. (a) The department may grant to an applicant for 21 a license under this chapter, or to a licensee, a variance from a requirement of this 22 chapter or a regulation adopted under this chapter if that person submits to the 23 department, on a form provided by the department, a complete variance request as 24 required by this section. A variance may be granted if 25  (1) the applicant or licensee proposes an alternative means, acceptable 26 to the department, to satisfy the intent of the requirement for which the variance is 27 requested; and 28  (2) the health and safety of children is adequately protected. 29  (b) A request for a variance must contain the following information: 30  (1) the statute or regulation from which the variance is sought; 31  (2) the reasons why the variance is needed;

01  (3) the period of time for which the variance is requested; 02  (4) the proposed alternative means of satisfying the intent of the 03 requirement for which the variance is requested; 04  (5) a statement as to how the health and safety of children will be 05 protected during the period of the variance; and 06  (6) assurance that the conditions of the facility do not present an 07 imminent danger to the health or safety of individuals served by the facility. 08  (c) To evaluate a request for a variance, the department shall take one or more 09 of the following actions: 10  (1) investigate the statements in the request; 11  (2) inspect the facility; 12  (3) schedule a conference with the applicant or licensee regarding the 13 variance request. 14  (d) The department's decision approving or denying a variance must be in 15 writing, and the department shall provide a copy of the decision to the person 16 requesting the variance. If the department grants the variance, the decision must state 17 the term of and conditions of the variance. 18  (e) If an applicant or licensee violates a condition of a variance granted under 19 this section, the variance is terminated. 20  Sec. 14.37.029. Content of license; posting. (a) A license issued under this 21 chapter must state 22  (1) the period of time during which the license is in effect; 23  (2) the name of the facility; 24  (3) the type of facility; 25  (4) the name of the licensee; 26  (5) the location and mailing address of the facility; 27  (6) the number and age range of children that the facility may have in 28 care at any time; 29  (7) all conditions set by the department; 30  (8) variances approved by the department for the duration of the 31 license; and

01  (9) the address and phone number of the nearest department office that 02 is responsible for administering this chapter or of the department representative 03 responsible for evaluating that facility under AS 14.37.010(a)(4). 04  (b) A licensee shall post the license in a conspicuous place in the facility, 05 visible to individuals in care and their families and to facility staff. If the department 06 has approved a variance that is not stated on the license, the licensee shall post a copy 07 of the variance near the license. 08  Sec. 14.37.033. Licenses not transferable. A license may be issued under 09 this chapter only for the location and person named in the application. A license 10 issued under this chapter may not be transferred to another person or location. 11  Sec. 14.37.037. Orientation and training. The department, by regulation, 12 may require that an applicant or licensee complete orientation or training to assist that 13 person in operating under the license. 14  Sec. 14.37.039. Records required. (a) In accordance with regulations 15 adopted by the department, a licensee shall keep the records regarding each individual 16 in its care that are necessary to show compliance with this chapter and regulations 17 adopted under this chapter. 18  (b) The department's licensing records, with the names of all individuals in 19 care and parents of minors in care deleted to protect the confidentiality of those 20 individuals, are available for public inspection, except for 21  (1) material made confidential by state or federal statutes or regulations; 22  (2) material that is part of an uncompleted licensing or complaint 23 investigation; 24  (3) records that would deprive an applicant, licensee, or other person 25 of a fair and impartial hearing; and 26  (4) records for which the department determines that disclosure would 27 constitute an unwarranted invasion of personal privacy. 28  (c) A government agency that provides funding to a facility licensed under this 29 chapter may have access to that facility's records in order to conduct an audit. 30  Sec. 14.37.043. Monitoring; investigation. (a) By the first anniversary of 31 the effective date of a biennial license, including a renewed biennial license, the

01 licensee shall submit an annual self-monitoring report to the department. The 02 department shall specify, by regulation, the contents of the report. 03  (b) To encourage parents of children in child care facilities to become involved 04 in day-to-day monitoring of the care provided by the facilities, the department shall 05 require licensees to give to parents of children in child care in the licensee's facility 06 a summary of the regulatory requirements that apply to the facility and the 07 department's or department representative's telephone contact number for reporting a 08 concern regarding child care. The department also may provide notice of the 09 telephone contact numbers for reporting child care concerns. 10  (c) The department may conduct an investigation, including announced or 11 unannounced on-site inspections, for ongoing monitoring or to assist in its review of 12 an annual self-monitoring report. 13  Sec. 14.37.045. Biennial license renewal. (a) At least 90 days before the 14 expiration date of a biennial license, a licensee who wishes to remain licensed shall 15 submit, on a form provided by the department, an application for renewal of the 16 license and any associated variances. 17  (b) Before expiration of a biennial license, the department or its representative 18 shall inspect a facility that is the subject of a renewal application. 19  (c) The department shall renew a biennial license if the department finds that 20  (1) the licensee 21  (A) either is in compliance with this chapter and regulations 22 adopted under this chapter or is substantially in compliance and has 23 implemented a plan of correction, approved by the department, that is designed 24 to bring the facility into full compliance; and 25  (B) has maintained the facility in good repair and is in 26 compliance with all state fire safety and environmental health and safety code 27 requirements; 28  (2) the ground for revocation set out in AS 14.37.130(a)(2) does not 29 exist; and 30  (3) all applicable fees have been paid. 31  (d) If the licensee submits a renewal application within the time period

01 required by the department by regulation, but the department is unable to complete its 02 review before the expiration date of the biennial license, the license is automatically 03 extended for six months or until the department completes its review and either 04 approves or denies the application, whichever occurs first. 05  (e) If the department decides to approve an application for renewal, but finds 06 that the applicant is not in compliance with a provision of this chapter, a regulation 07 adopted under this chapter, or a condition on the license, the department, as a 08 condition on the renewed biennial license, shall require the applicant to correct any 09 violations and provide the department with verification of compliance. 10  (f) If the department denies an application for renewal, it shall provide the 11 applicant with a notice of denial of application. The notice must contain a written 12 statement of the reasons for denial and a form for requesting a hearing under (g) of 13 this section. 14  (g) An applicant whose application is denied may appeal the department's 15 decision, on the form provided by the department, by requesting a hearing within 15 16 days after receipt of the notice of denial of application. 17  Sec. 14.37.047. Notice of changes. (a) A licensee shall provide the 18 department with written notice of a change of mailing address at least 14 days before 19 the effective date of the change. 20  (b) A licensee shall notify the department within 24 hours after having 21 knowledge of a conviction or indictment, presentment, or charging by information or 22 complaint of an administrator, regular volunteer, staff person, or member of the 23 licensee's household for a violation of the following laws or the laws of another 24 jurisdiction with similar elements: 25  (1) offenses against the family and vulnerable adults under AS 11.51; 26  (2) perjury under AS 11.56.200; 27  (3) offenses included in the definition of "serious offense" under 28 AS 12.62.900. 29  (c) A licensee shall notify the department at least 20 days before the effective 30 date of a decision to relinquish the license. 31  (d) A licensee shall notify the department at least 20 days before the date on

01 which the licensee wishes to change the number of children in care or hours of 02 operation. 03  (e) A licensee shall notify the department no later than one day after signing 04 a contract for sale of the licensed facility. 05  (f) A licensee shall notify the department at least 30 days before the licensee 06 wishes to change the location of the facility. 07  Sec. 14.37.105. Complaints. (a) A person who believes that a provision of 08 this chapter, a regulation adopted under this chapter, or a condition of a license issued 09 under this chapter has been violated may file a verbal or written complaint with the 10 department. 11  (b) The department shall investigate all complaints filed under this section 12 unless the department reasonably concludes that the complaint is without merit. 13  (c) After an investigation under this section, the department shall prepare a 14 written report of investigation and shall mail a copy to the licensee or other person 15 who is the subject of the complaint, and to the complainant if requested. If the 16 department determines that a violation of this chapter, a regulation adopted under this 17 chapter, or a condition of a license issued under this chapter has occurred, the 18 department's report of investigation must contain the following: 19  (1) a description of the violation; 20  (2) a citation to the provision of this chapter or the regulation that has 21 been violated, if applicable; and 22  (3) either 23  (A) a date by which the violation must be corrected and a 24 verification of compliance submitted to the department; or 25  (B) a plan of correction. 26  (d) A licensee may submit to the department a written response regarding a 27 report of investigation relating to that facility. The department shall retain the written 28 response in the licensing file. 29  (e) A licensee may not take retaliatory action against a person who files a 30 complaint. A complainant against whom retaliatory action has been taken may recover 31 treble damages in a civil action upon a showing that the action was taken in retaliation

01 for the filing of a complaint. 02  Sec. 14.37.110. Investigations; search warrants. (a) An applicant for a 03 license, or a licensee, shall cooperate with the department for purposes of licensing 04 investigations, investigations relating to ongoing monitoring of the facility, or 05 investigations under AS 14.37.105 by 06  (1) permitting representatives of the department to inspect the facility, 07 review records, interview staff, and interview individuals in care; and 08  (2) providing to the department information and documentation 09 requested by the department to determine compliance with this chapter and regulations 10 adopted under this chapter. 11  (b) Following an investigation relating to ongoing monitoring of a facility or 12 relating to a facility that the department believes is operating without a license in 13 violation of this chapter, the department shall prepare and distribute a written report 14 of investigation as described in AS 14.37.105(c), and the facility may submit a 15 response as described in AS 14.37.105(d). 16  (c) The department may seek a search warrant to inspect a facility if 17  (1) the department has probable cause to believe that the facility is 18 operating without a license in violation of this chapter and the facility operator refuses 19 to allow an inspection by the department; or 20  (2) the licensee refuses to allow an inspection of the facility by the 21 department. 22  Sec. 14.37.120. Enforcement actions. (a) During an investigation under this 23 chapter, the department may, by written notice, suspend operations of the facility if the 24 department has reasonable cause to believe that a violation is occurring that presents 25 an imminent danger to the health or safety of the individuals in care. A suspension 26 under this subsection continues for the time period set by the department and may 27 continue until the department issues a report of investigation under AS 14.37.105(c) 28 or 14.37.110(b). 29  (b) If, after an investigation under this chapter, the department has determined 30 that a violation of this chapter or a regulation adopted under this chapter has occurred 31 or a ground for revocation or nonrenewal set out in AS 14.37.130 exists, has issued

01 a report of investigation under AS 14.37.105(c) or 14.37.110(b), and has determined 02 that voluntary compliance or a plan of correction is not appropriate, the department 03 may take one or more of the following enforcement actions as the department 04 considers appropriate: 05  (1) delivery of a warning notice to the licensee or other person who is 06 the subject of the investigation; 07  (2) modification of the term of an existing license or reduction of the 08 number of children for whom care can be provided; 09  (3) suspension of operations of the facility for a period of time set by 10 the department; 11  (4) suspension of new enrollment in the facility for a period of time set 12 by the department; 13  (5) nonrenewal of the license; 14  (6) revocation of the license; 15  (7) issuance of an order requiring immediate closure of the facility; 16  (8) assessment of an administrative fine of up to $500 for each day a 17 violation continues, not to exceed a total of $5,000 for a violation. 18  (c) The department shall provide the licensee or other person who is the 19 subject of an investigation with written notice of the department's decision under (b) 20 of this section to take enforcement action. The notice must contain a form for 21 requesting a hearing under (d) of this section and must describe 22  (1) the condition, if any, in the facility that constitutes a violation of 23 this chapter or a regulation adopted under this chapter; 24  (2) each enforcement action that will be taken; 25  (3) the licensee's or other person's right to appeal the department's 26 decision to take an enforcement action described in (b)(2) - (8) of this section. 27  (d) A licensee or other person to whom a notice has been provided under (a) 28 or (c) of this section may appeal the department's decision to impose an enforcement 29 action described in (a) or (b)(2) - (8) of this section by filing a written request for a 30 hearing, on the form provided by the department, within 15 days after receipt of the 31 notice of enforcement action.

01  (e) Unless the violation that prompted enforcement action under (b) of this 02 section presents an imminent danger to the health or safety of the individuals in care, 03 an enforcement action described in a notice provided under (c) of this section may not 04 be imposed until 05  (1) the time period for requesting a hearing under (d) of this section has 06 passed without a hearing being requested; or 07  (2) the department makes a final decision following a hearing requested 08 under (d) of this section. 09  (f) If a hearing is requested under (d) of this section, the department's decision 10 following the hearing is a final administrative order. 11  (g) If a hearing is not requested under (d) of this section, the department's 12 notice of enforcement action constitutes a final administrative order, which the 13 department may seek the court's assistance in enforcing. 14  (h) A licensee whose license was revoked or not renewed under this section 15 may not reapply for licensure under this chapter until after the time period, if any, set 16 by the department in its final administrative order. If a time period is not set by the 17 department, the revocation or nonrenewal is permanent, and the former licensee may 18 not again apply for licensure under this chapter. 19  (i) Assessment of an administrative fine under this section does not preclude 20 imposition of a criminal penalty under AS 14.37.820. 21  Sec. 14.37.130. Grounds for license revocation or nonrenewal. (a) In 22 addition to the ground of violation of this chapter or a regulation adopted under this 23 chapter, the department may revoke or decline to renew a license issued under this 24 chapter on one or more of the following grounds: 25  (1) failure to submit a timely and complete renewal application; 26  (2) the indictment or charging by information or complaint, or a 27 criminal conviction within the last 10 years, of the licensee or administrator, member 28 of the licensee's household who is present in the facility at any time the facility is in 29 operation, regular volunteer, or staff person for 30  (A) a felony; 31  (B) a misdemeanor crime of assault, reckless endangerment,

01 contributing to the delinquency of a minor, or misconduct involving a 02 controlled substance; or 03  (C) the crime of perjury, as defined in AS 11 or the laws of 04 another jurisdiction; 05  (3) the conviction, indictment, presentment, or charging of the licensee 06 or an administrator, member of the licensee's household who is present in the facility 07 at any time the facility is in operation, regular volunteer, or staff person at any time 08 for a violation or attempted violation of an offense included in the definitions of 09 "serious offense" under AS 12.62.900; 10  (4) obtaining or attempting to obtain or retain a license under this 11 chapter by fraudulent means, misrepresentation, or by submitting false information; 12  (5) failure to correct a violation noted in a report of investigation 13 provided under AS 14.37.105(c) or 14.37.110(b); 14  (6) failure to comply with a final administrative order issued by the 15 department under AS 14.37.120. 16  (b) A licensee may voluntarily relinquish the license or withdraw an 17 application for renewal. 18  Sec. 14.37.800. Administrative procedure. The administrative adjudication 19 provisions of AS 44.62 (Administrative Procedure Act) apply to an appeal from a 20 department decision under this chapter relating to denial, involuntary conditioning, or 21 revocation of a license, suspension of operations or admissions, or assessment of an 22 administrative fine. 23  Sec. 14.37.810. Immunity from liability. (a) A person operating under 24 agreement with the department under AS 14.37.010(a)(4) is immune from civil liability 25 that might otherwise be incurred or imposed for acts or omissions that occurred during 26 the performance of the person's duties on behalf of the department if the person was 27 operating within the scope of the duties delegated to the person under the agreement. 28  (b) The department and its employees are not liable for civil damages as a 29 result of an act or omission in the licensing, monitoring, or supervision of a facility 30 licensed under this chapter. This subsection does not preclude liability for civil 31 damages as a result of gross negligence or reckless or intentional misconduct.

01  Sec. 14.37.820. Penalty. A person who violates a provision of this chapter 02 or a regulation adopted under this chapter is guilty of a class B misdemeanor. 03  Sec. 14.37.900. Definitions. In this chapter, 04  (1) "administrator" means an individual who has general administrative 05 charge and oversight of a facility; 06  (2) "child" means an individual under 18 years of age, and includes an 07 individual who is a relative of a care provider or administrator; 08  (3) "child care" means, care, supervision, and provision of 09 developmental opportunities, with or without compensation, to a child who does not 10 have a parent present; 11  (4) "child care facility" means a place where child care is regularly 12 provided for children under 12 years of age for periods of time that are less than 24 13 hours in duration unless nighttime care is authorized by the department; 14  (5) "criminal justice information" has the meaning given in 15 AS 12.62.900; 16  (6) "department" means the Department of Education and Child 17 Development; 18  (7) "facility" means the administration, program, and physical plant of 19 a child care facility; 20  (8) "licensee" means a person to whom a license has been issued under 21 this chapter; 22  (9) "parent" means a birth or adoptive parent or a legal guardian; 23  (10) "relative" means an individual who is related to another through 24 any of the following relationships, by blood, adoption, or marriage: parent, 25 grandparent, great grandparent, brother, sister, stepparent, stepsister, stepbrother, 26 cousin, aunt, uncle, great-aunt, great-uncle or step-grandparent; 27  (11) "serious offense" has the meaning given in AS 12.62.900. 28 * Sec. 8. AS 14 is amended by adding a new chapter to read: 29 Chapter 38. Head Start, Child Care, and Day Care. 30 Article 1. Head Start. 31  Sec. 14.38.010. Operation of Head Start programs. The Department of

01 Education and Child Development shall operate the head start funding program 02 governed by 42 U.S.C. 9835. 03 Article 2. Day Care Assistance. 04  Sec. 14.38.100. Powers and duties. (a) The department shall 05  (1) implement and administer a program to assist in providing day care 06 for the children of low and moderate income families according to the requirements 07 of AS 14.38.100 - 14.38.199; 08  (2) establish standards of eligibility for day care benefits; 09  (3) contract for the care of children of eligible families; 10  (4) establish procedures to periodically review the needs of families 11 receiving day care benefits; 12  (5) provide notification to the local government body of the request for 13 a contract with a day care facility. 14  (b) The department may 15  (1) adopt regulations necessary for the performance of its duties under 16 AS 14.38.100 - 14.38.199; 17  (2) contract with other entities to perform duties of the department 18 under AS 14.38.100 - 14.38.199 within an area specified by the department; within an 19 area, the department shall give higher priority to contracting with municipalities than 20 with other organizations. 21  Sec. 14.38.110. Administrative costs of program contractors. To defray 22 administrative expenses, a contractor under AS 14.38.100(b) may only retain $1,000 23 or 12 percent, whichever is greater, of the day care assistance program funds it 24 receives from the department under the contract. 25  Sec. 14.38.120. Conditions of receipt of benefits. Benefits may be paid for 26 the care of children of a low or moderate income family only if a parent or guardian, 27 because of the day care, is freed to work or to seek work or to attend school. Benefits 28 may not be paid for the care of children of a family where one parent or guardian is 29 not working, actively seeking work, or attending school and is physically and mentally 30 capable of caring for the children. 31  Sec. 14.38.130. Eligibility of families for benefits. The department shall

01 determine the eligibility of families for day care benefits on the basis of the following 02 factors: 03  (1) income of the family including salary, alimony, child support, 04 retirement benefits, social security, and any other source of income; 05  (2) number of children in the family; 06  (3) whether there is one parent or guardian solely responsible for the 07 care of the family. 08  Sec. 14.38.140. Contributions by parent or guardian. The department shall 09 develop a sliding fee scale based on the factors listed in AS 14.38.130 for purposes of 10 determining the amount to be contributed by the parent or guardian for child care. The 11 contribution of the parent or guardian shall be paid to the day care facility. 12  Sec. 14.38.150. Placement; payment by state. (a) Parents or guardians shall 13 select the day care facility for the care of their children. 14  (b) Benefits shall be paid by the department directly to the municipality or 15 organization contracting with the day care facility. 16 Article 3. Child Care Grants. 17  Sec. 14.38.160. Child care grant program. (a) A child care grant program 18 is established in the department to provide state assistance in the operation of child 19 care facilities. The department shall provide grants for the operation of child care 20 facilities, including private nonprofit child care facilities. Participation in the program 21 is optional. 22  (b) To qualify for a grant under (a) or (d) of this section, the child care facility 23 must 24  (1) be currently licensed under AS 47.35 and applicable municipal 25 licensing requirements; 26  (2) participate in the day care assistance program under AS 14.38.100 - 27 14.38.199; and 28  (3) provide care under a payment system as provided in (g) of this 29 section. 30  (c) A grant under (a) of this section may not exceed $50 per month for each 31 child the child care facility cares for, or for each full-time equivalent, as determined

01 by the department. The grant shall be adjusted on a geographic basis by the same 02 factor as funding for a school district is adjusted under AS 14.17.460. 03  (d) In addition to the grants provided in (a) of this section, the department 04 may, subject to appropriations for that purpose, provide by grant or contract for the 05 education and training of child care employees or administrators. To receive a grant 06 or contract under this subsection or to participate in a training program under this 07 subsection, the child care facility must meet all the requirements of (b) of this section. 08  (e) An application for a grant under this section shall be made in the form 09 established by the department. 10  (f) A grant under (a) of this section shall be made monthly or quarterly and 11 shall be based on the monthly average daily full-time equivalent enrollment in the 12 child care facility. If the method of payment for the grant is other than monthly, it 13 shall be at the request of the child care facility with the approval of the department. 14 Based on criteria established by the department, the department may make quarterly 15 advance payments. 16  (g) Each child care facility receiving a grant under (a) or (d) of this section 17 shall assure that at least 15 percent or one of its child care spaces receiving subsidy 18 under this section, whichever is greater, will be made available, if requested, to 19 children eligible for day care assistance under AS 14.38.100 - 14.38.199, whose 20 parents or guardians wish to pay for care based on attendance only. 21  (h) The State Board of Education shall, in consultation with interested child 22 care providers and parents, adopt regulations to carry out the purposes of this section. 23  Sec. 14.38.199. Definitions. In AS 14.38.100 - 14.38.199, 24  (1) "child" means a person below 13 years of age, or a minor who has 25 a developmental disability; 26  (2) "child care facility" means an establishment licensed under 27 AS 47.35 including but not limited to day care centers, family day care homes, and 28 schools for preschool age children, which provides care for children not related by 29 blood, marriage, or legal adoption to the owner, operator, or manager of the facility; 30  (3) "day care" means the care, supervision, and guidance of a child or 31 children unaccompanied by a parent or legal guardian on a regular basis for periods

01 of less than 24 hours a day; 02  (4) "day care facility" means a center or home licensed in accordance 03 with the provisions of AS 47.35 or recognized by the federal government for the care 04 of children; 05  (5) "department" means the Department of Education and Child 06 Development; 07  (6) "developmental disability" means a disability under which a person 08 is incapable of self-care, as verified by a physician or licensed or certified psychologist 09 who has examined the person. 10 * Sec. 9. AS 14.38.160(b) is amended to read: 11  (b) To qualify for a grant under (a) or (d) of this section, the child care facility 12 must 13  (1) be currently licensed under AS 14.37 [AS 47.35] and applicable 14 municipal licensing requirements; 15  (2) participate in the day care assistance program under AS 14.38.100 - 16 14.38.199; and 17  (3) provide care under a payment system as provided in (g) of this 18 section. 19 * Sec. 10. AS 14.38.199(2) is amended to read: 20  (2) "child care facility" means an establishment licensed under 21 AS 14.37 [AS 47.35] including but not limited to day care centers, family day care 22 homes, and schools for preschool age children, which provides care for children not 23 related by blood, marriage, or legal adoption to the owner, operator, or manager of the 24 facility; 25 * Sec. 11. AS 14.38.199(4) is amended to read: 26  (4) "day care facility" means a center or home licensed in accordance 27 with the provisions of AS 14.37 [AS 47.35] or recognized by the federal government 28 for the care of children; 29 * Sec. 12. AS 14.42.015(a) is amended to read: 30  (a) There is in the Department of Education and Child Development the 31 Alaska Commission on Postsecondary Education consisting of

01  (1) two members of the Board of Regents of the University of Alaska 02 designated by the members of that body; 03  (2) one person representing private higher education in the state 04 selected jointly by the Boards of Trustees of Alaska Pacific University and Sheldon 05 Jackson College from among their membership; 06  (3) one person representing the Department of Education and Child 07 Development selected by the state Board of Education; 08  (4) four persons broadly and equitably representative of the general 09 public appointed by the governor; 10  (5) one member of the Alaska Human Resource Investment Council 11 established by AS 23.15.550 [AS 44.19.620] designated by the members of that body; 12  (6) one person from the members of the local community college 13 advisory councils appointed by the governor; 14  (7) two members from the legislature, one of whom shall be appointed 15 by the president of the senate and one by the speaker of the house of representatives; 16  (8) one person appointed in accordance with (e) of this section who is 17 a full-time student as defined in AS 14.43.160; 18  (9) one administrator appointed by the governor from a proprietary 19 institution of postsecondary education that has an authorization to operate in the state 20 issued under AS 14.48. 21 * Sec. 13. AS 14.43.148(h)(1) is amended to read: 22  (1) "license" 23  (A) means, except as provided in (B) of this paragraph, a 24 license, certificate, permit, registration, or other authorization that, at the time 25 of issuance, will be valid for more than 150 days and that may be acquired 26 from a state agency to perform an occupation, including the following: 27  (i) license relating to boxing or wrestling under 28 AS 05.10; 29  (ii) authorization to perform an occupation regulated 30 under AS 08; 31  (iii) teacher certificate under AS 14.20;

01  (iv) authorization under AS 18.08 to perform emergency 02 medical services; 03  (v) asbestos worker certification under AS 18.31; 04  (vi) boiler operator's license under AS 18.60.395; 05  (vii) certificate of fitness under AS 18.62; 06  (viii) hazardous painting certification under AS 18.63; 07  (ix) certification as a municipal correctional, 08 correctional, probation, or parole officer under AS 18.65.245; 09  (x) security guard license under AS 18.65.400 - 10 18.65.490; 11  (xi) license relating to insurance under AS 21.27; 12  (xii) employment agency permit under AS 23.15.330 - 13 23.15.520; 14  (xiii) registration as a broker-dealer, agent, or investment 15 adviser under AS 45.55.030; 16  (xiv) certification as a pesticide applicator under 17 AS 46.03.320; 18  (xv) certification as a storage tank worker or contractor 19 under AS 46.03.375; 20  (xvi) certification as a water and wastewater works 21 operator under AS 46.30; and 22  (B) does not include 23  (i) a commercial fishing license under AS 16.05.480, 24 including a crewmember fishing license; 25  (ii) a vessel license issued under AS 16.05.490 or 26 16.05.530; 27  (iii) a license issued under AS 14.37 or AS 47.35; 28  (iv) a business license issued under AS 43.70; 29  (v) an entry permit or interim-use permit issued under 30 AS 16.43; or 31  (vi) a driver's license issued under AS 28.15;

01 * Sec. 14. AS 18.70.081 is amended to read: 02  Sec. 18.70.081. Approval of fire protection systems. Before October 30 of 03 each year the Department of Public Safety shall prepare and make available a list of 04 approved fire protection systems to [THE DEPARTMENT OF COMMUNITY AND 05 REGIONAL AFFAIRS,] the Department of Community [COMMERCE] and 06 Economic Development [,] and the public. 07 * Sec. 15. AS 23.05 is amended by adding a new section to read: 08  Sec. 23.05.065. Fees for publications, research data, and other services. 09 The commissioner may establish by regulation and the department may charge 10 reasonable fees for department publications, research data, and other centralized 11 administrative services to cover the cost of reproduction, printing, mailing, distribution, 12 and other centralized administrative services. 13 * Sec. 16. AS 23.15.010 is amended to read: 14  Sec. 23.15.010. Administration of vocational rehabilitation [BOARD OF 15 VOCATIONAL REHABILITATION]. The commissioner shall [BOARD OF 16 EDUCATION WHICH ADMINISTERS THE PROGRAM OF VOCATIONAL 17 EDUCATION IS DESIGNATED AS THE BOARD OF VOCATIONAL 18 REHABILITATION TO] administer the vocational rehabilitation program. 19 * Sec. 17. AS 23.15.020 is amended to read: 20  Sec. 23.15.020. Powers and duties of commissioner [BOARD]. (a) The 21 commissioner [BOARD] may cooperate with a federal agency, as provided and 22 required by federal law for vocational rehabilitation. 23  (b) The commissioner [BOARD] shall comply with the federal laws and the 24 conditions necessary to secure the full benefit of the federal vocational rehabilitation 25 laws, and shall do all things necessary to entitle the state to receive the benefits of the 26 federal laws. 27  (c) The commissioner [BOARD] may do all the things and adopt the 28 regulations that are necessary to carry out the federal laws and the purposes of 29 AS 23.15.010 - 23.15.210. 30 * Sec. 18. AS 23.15.030 is amended to read: 31  Sec. 23.15.030. Appointment of administrative officers. The commissioner

01 [BOARD] may appoint administrative officers [,] and delegate to them the authority 02 necessary to carry out AS 23.15.010 - 23.15.210. 03 * Sec. 19. AS 23.15.040 is amended to read: 04  Sec. 23.15.040. Division of vocational rehabilitation established. The 05 division of vocational rehabilitation is established under the commissioner [BOARD 06 OF VOCATIONAL REHABILITATION] to carry out AS 23.15.010 - 23.15.210. 07 * Sec. 20. AS 23.15.050 is amended to read: 08  Sec. 23.15.050. Director of vocational rehabilitation. The commissioner 09 [BOARD] shall appoint a director of the division of vocational rehabilitation. The 10 director has the administrative authority delegated by the commissioner [BOARD] and 11 necessary to carry out AS 23.15.010 - 23.15.210 and the regulations and policies 12 adopted by the commissioner [BOARD]. 13 * Sec. 21. AS 23.15.060(a) is amended to read: 14  (a) The commissioner [BOARD] acting through the division of vocational 15 rehabilitation may enter into necessary agreements on behalf of the state with the 16 Secretary of Health and Human Services to carry out the provisions of the federal 17 Social Security Act, as amended, and as it is subsequently amended, relating to the 18 making of determinations of disability under Title II and Title XVI of that Act. 19 * Sec. 22. AS 23.15.070 is amended to read: 20  Sec. 23.15.070. Personnel policies. The commissioner [BOARD] shall adopt 21 personnel policies for the division of vocational rehabilitation. The director shall 22 execute these policies and keep them on file. 23 * Sec. 23. AS 23.15.160 is amended to read: 24  Sec. 23.15.160. Gifts. The commissioner [BOARD] may accept a gift or 25 donation from a public or a private source that is offered unconditionally for carrying 26 out AS 23.15.010 - 23.15.210. The commissioner [BOARD] may accept a conditional 27 gift if, in the judgment of the agency, the conditions are proper and consistent with 28 AS 23.15.010 - 23.15.210. 29 * Sec. 24. AS 23.15 is amended by adding new sections to read: 30 Article 3A. Alaska Human Resource Investment Council. 31  Sec. 23.15.550. Alaska Human Resource Investment Council. (a) The

01 Alaska Human Resource Investment Council is established in the department. The 02 council consists of the following voting members, not to exceed 26: 03  (1) the lieutenant governor or the lieutenant governor's designee; 04  (2) the commissioners of community and economic development, 05 education and child development, health and social services, and labor and workforce 06 development, or each respective commissioner's designee; 07  (3) one representative from the University of Alaska; 08  (4) four additional representatives of education, with one from local 09 public education, one from secondary vocational education, one from a postsecondary 10 vocational education institution, and one from adult basic education; 11  (5) four representatives of business and industry, with at least one 12 representative from the private industry councils appointed under 29 U.S.C. 1512 and 13 subject to reconstitution under 29 U.S.C. 1515; 14  (6) four representatives of organized labor that the governor shall 15 appoint from lists of nominees submitted by recognized state labor organizations; the 16 governor may reject a list submitted under this paragraph and request that another list 17 be submitted; 18  (7) at least one representative from an organization representing 19 employment and training needs of Alaska Natives; 20  (8) at least one representative of a community based service 21 organization; 22  (9) at least one representative who has personal or professional 23 experience with developmental disabilities; and 24  (10) at least one and up to five additional members of the private sector 25 to ensure a private sector majority and regional and local representation on the council. 26  (b) Additional nonvoting members may be appointed to the council from 27 government or nongovernment entities. 28  (c) A member of the council under (a) of this section may appoint a designee 29 to serve in place of the member named in (a) of this section. The member shall 30 appoint the designee in writing. 31  Sec. 23.15.555. Appointment and term of members. (a) Members of the

01 Alaska Human Resource Investment Council other than those listed in 02 AS 23.15.550(a)(1) and (2) are appointed by the governor and serve at the pleasure of 03 the governor. The governor may appoint one person to fill two or more of the places 04 listed in AS 23.15.550(a) if the person is qualified in all of the areas the person 05 represents. A member appointed to fill more than one place under this subsection is 06 entitled to only one vote and may appoint only one designee to replace the member 07 in the event the member is unable to attend a meeting. 08  (b) The voting members of the council other than those listed in 09 AS 23.15.550(a)(1) and (2) serve for staggered four-year terms and may serve until a 10 successor is appointed. An appointment to fill a vacancy shall be made in the same 11 manner as the original appointment and for the balance of the unexpired term. 12  (c) The governor shall ensure that individuals appointed to the council have 13 sufficient expertise to effectively carry out the duties of the council. Expertise of the 14 council includes, where appropriate, knowledge of the long-term needs of individuals 15 preparing to enter the work force; the needs of local, state, and regional labor markets; 16 and the methods for evaluating the effectiveness of vocational training programs in 17 serving varying populations. 18  Sec. 23.15.560. Compensation. Members of the Alaska Human Resource 19 Investment Council listed in or appointed under AS 23.15.550(a), including a designee 20 of a member attending in place of the member, serve without compensation but are 21 entitled to per diem and travel expenses authorized by law for boards and commissions 22 under AS 39.20.180. Nonvoting members of the council appointed under 23 AS 23.15.550(b) serve without compensation and are not entitled to per diem and 24 travel expenses. A commissioner appointed under AS 23.15.550(a)(2) or the 25 commissioner's designee is entitled to per diem and travel expenses as a state 26 employee. 27  Sec. 23.15.565. Officers. The Alaska Human Resource Investment Council 28 shall elect a chair and a vice-chair from among the members listed in or appointed 29 under AS 23.15.550(a)(5). The chair and vice-chair serve in their positions at the 30 pleasure of the council. 31  Sec. 23.15.570. Meetings, quorum, and committees. (a) The Alaska Human

01 Resource Investment Council shall meet not more than three times in a calendar year 02 at the call of the chair to conduct its business. A majority of the members listed in 03 or appointed to the council under AS 23.15.550(a) constitutes a quorum. 04  (b) The council shall establish an executive committee and four permanent 05 standing committees as described in (c) - (g) of this section. The chair of a permanent 06 standing committee must be from the private sector. The council may establish 07 additional standing committees and special committees or subcommittees, not 08 necessarily consisting of council members, to advise and assist the council in carrying 09 out its functions assigned by federal or state statute. The permanent standing 10 committees are 11  (1) the assessment and evaluation committee; 12  (2) the policy and planning committee; 13  (3) the employment and placement committee; and 14  (4) the workforce readiness committee. 15  (c) The executive committee consists of the chair and vice-chair of the council, 16 the immediate past chair of the council, and the chairs of the four standing committees 17 described in (d) - (g) of this section. The executive committee has the duties and may 18 exercise the powers of the council between meetings of the council. The executive 19 committee shall 20  (1) report to the council in a timely fashion on actions taken on behalf 21 of the council; and 22  (2) supervise the affairs of the council between regular meetings of the 23 council. 24  (d) The assessment and evaluation committee shall 25  (1) assess and evaluate programs, initiatives, and the delivery of 26 services to help to ensure equitable distribution of quality education, training, and 27 employment services statewide, especially to rural areas and to programs serving 28 economically disadvantaged citizens; 29  (2) call for and monitor the workforce development system for 30 increased accountability in performance and continuous quality improvement along the 31 goals and strategies of the council's overall statewide strategic plan for workforce

01 development; 02  (3) use evaluation and performance measures to gauge customer 03 satisfaction within the workforce development system; and 04  (4) perform other duties assigned by the council. 05  (e) The policy and planning committee shall 06  (1) build policies regarding day-to-day operations and long-term 07 responsibilities of the council; 08  (2) work to increase awareness of the council and its mission 09 throughout the state; 10  (3) work with all other committees on a statewide strategic plan for 11 workforce development; and 12  (4) perform other duties assigned by the council. 13  (f) The employment and placement committee shall 14  (1) ensure the statewide strategic plan for workforce development 15 addresses 16  (A) customer needs at the local level; 17  (B) moving welfare recipients into the workforce; 18  (C) promoting the hiring of state residents in jobs that have 19 traditionally been filled by out-of-state workers; 20  (D) tailoring employment and training programs to suit state 21 business, industry, and economic development needs; 22  (2) monitor the coordination of service delivery to promote efficiency 23 and to prevent overlap of services among programs; and 24  (3) perform other duties assigned by the council. 25  (g) The workforce readiness committee shall 26  (1) provide oversight for training, education, and employment programs 27 to ensure the programs are delivering education and training that is relevant to local 28 market needs and the career goals of state residents; 29  (2) build partnerships between employers and quality workforce training 30 programs; 31  (3) work to connect the state public and private education systems with

01 business, government, and labor to ensure that state residents are receiving workforce 02 readiness skills throughout the education process; and 03  (4) perform other duties assigned by the council. 04  Sec. 23.15.575. Council as state planning entity. The Alaska Human 05 Resource Investment Council shall act as the lead state planning and coordinating 06 entity for state human resource programs administered under 07  (1) 29 U.S.C. 1501 - 1792b (Job Training Partnership Act); 08  (2) 20 U.S.C. 2301 - 2471 (Carl D. Perkins Vocational and Applied 09 Technology Education Act); 10  (3) 20 U.S.C. 1201 - 1213d (Adult Education Act); 11  (4) 29 U.S.C. 49 - 49l-1 (Wagner - Peyser Act); 12  (5) 42 U.S.C. 681 - 687 (Job Opportunities and Basic Skills Training 13 Program) for needy families with children under the Social Security Act; 14  (6) the employment program established under 7 U.S.C. 2015(d)(4) 15 (Food Stamp Act of 1977); 16  (7) all federal programs designated as successors to the programs listed 17 in (1) - (6) of this section; and 18  (8) all state laws involving employment training, vocational education, 19 workforce development, and community service. 20  Sec. 23.15.580. Functions of the council. (a) As the lead state planning and 21 coordinating entity, the Alaska Human Resource Investment Council has responsibility, 22 to the extent authorized by federal and state law, for planning and coordinating federal, 23 state, and local efforts in human resource programs in this state related to employment 24 training, including the work activities of the Alaska temporary assistance program 25 under AS 47.27. 26  (b) The council shall 27  (1) facilitate the development of statewide policy for a coordinated and 28 effective employment training and education system in this state; 29  (2) identify the human resource investment needs in the state and 30 develop a plan to meet those needs; 31  (3) review the provision of services and the use of money and resources

01 by the human resource programs listed in AS 23.15.575; 02  (4) assume the duties and functions of the state councils described 03 under the laws relating to the federal human resource programs listed in AS 23.15.575; 04  (5) advise the governor, state and local agencies, and the University of 05 Alaska on the development of state and local standards and measures relating to 06 applicable human resource programs; 07  (6) submit, to the governor and the legislature, a biennial strategic plan 08 to accomplish the goals developed to meet human resource investment needs; 09  (7) monitor for the implementation and evaluate the effectiveness of the 10 strategic plan developed by the council; 11  (8) adopt regulations that set standards for the percentage of a grant 12 that may be used for administrative costs; the regulations must clearly identify and 13 distinguish between expenses that may be included in administrative costs and those 14 that may not be included in administrative costs; the percentage allowed for 15 administrative costs may not exceed the lesser of 15 percent or the amount permitted 16 under the requirements of a federal program, if applicable; 17  (9) report annually to the legislature, by the 30th day of the regular 18 legislative session, on the performance and evaluation of training programs in the state 19 subject to review under (f) of this section; 20  (10) identify ways for agencies operating programs subject to oversight 21 by the council to share resources, instructors, and curricula through collaboration with 22 other public and private entities to increase training opportunities and reduce costs; and 23  (11) adopt regulations under AS 44.62 (Administrative Procedure Act) 24 to carry out the purposes of AS 23.15.550 - 23.15.585. 25  (c) The council may receive money designated for human resource programs 26 and may disburse money, including grants, to human resource projects in accordance 27 with AS 37.07 (Executive Budget Act). The council may enter into partnership 28 agreements through appropriate administrative agencies with private industry training 29 entities within the state in order to facilitate the coordination of training opportunities. 30  (d) The council shall provide oversight for the planning and coordination of 31 employment-related education training programs operated by the state or operated

01 under contract with the state that are described in (f) of this section. The council shall 02 require a training program listed in (f) of this section to meet the requirements of this 03 subsection. The council shall, by regulation, establish appropriate penalties for 04 programs that fail to meet the requirements of this subsection. The council may 05 recommend to the legislature changes to enhance the effectiveness of the training 06 programs it oversees under this section. A training program described in (f) of this 07 section funded with money appropriated by the legislature must 08  (1) meet the standards adopted by the council concerning the 09 percentage of a grant that may be spent on administrative costs; 10  (2) be operated by an institution that holds a valid authorization to 11 operate issued under AS 14.48 by the Alaska Commission on Postsecondary Education 12 if the program is a postsecondary educational program operated by a postsecondary 13 educational institution subject to regulation under AS 14.48; 14  (3) provide to the Department of Labor and Workforce Development 15 the information required by the department for the preparation of the statistical 16 information necessary for the council to evaluate programs by the standards set out in 17 (e) of this section. 18  (e) The council shall develop standards that encourage agencies to contract for 19 training programs that maximize the program's class size. The council shall adopt 20 standards for the evaluation of training programs listed in (f) of this section with 21 regard to the following: 22  (1) the percent of former participants who have a job one year after 23 leaving the training program; 24  (2) the median wage of former participants seven to 12 months after 25 leaving the program; 26  (3) the percent of former participants who were employed after leaving 27 the training program who received training under the program that was related to their 28 jobs or somewhat related to their jobs seven to 12 months after leaving the training 29 program; 30  (4) the percent of former participants of a training program who 31 indicate that they were satisfied with or somewhat satisfied with the overall quality of

01 the training program; 02  (5) the percent of employers who indicate that they were satisfied with 03 the quality of the work of new employees who had recently completed the training 04 program. 05  (f) The following training programs are subject to the provisions of (d) and (e) 06 of this section: 07  (1) in the Department of Labor and Workforce Development or 08 operated by the department: 09  (A) One Stop Career Center; 10  (B) Job Training Partnership Act programs under 29 U.S.C. 11 1501 - 1792b, assisting communities in moving toward a self-sustainable 12 economy and providing training; 13  (C) state training and employment program (AS 23.15.620), 14 providing training and employment services for people who are unemployed or 15 likely to become unemployed, fostering new jobs, and increasing training 16 opportunities for workers severely affected by fluctuations in the state economy 17 or adversely affected by technology advances in the workplace; 18  (D) employment-related adult basic education; 19  (E) School-to-Work; 20  (F) employment training services operated as part of the Alaska 21 Temporary Assistance Program (ATAP); 22  (G) unemployment insurance grants provided under the federal 23 training relocation assistance program; 24  (H) Alaska works programs, assisting with the welfare-to-work 25 program; 26  (I) state training and employment program, coordinated with the 27 Department of Community and Economic Development; 28  (2) in the Department of Education and Child Development or operated 29 by the department, the non-public-school portions of the following programs: 30  (A) high school completion project; 31  (B) Kotzebue Technical Center;

01  (C) Alaska Vocational Technical Center; 02  (D) vocational education and Tech Prep; 03  (E) Alaska Career Information System. 04  (g) The council shall assess the programs listed in this subsection and make 05 recommendations to the legislature in its report required under (b)(9) of this section 06 about whether to include one or more of these programs under the requirements of (f) 07 of this section: 08  (1) in the Department of Community and Economic Development or 09 operated by the department: 10  (A) local government assistance training and development, 11 including the rural utility business advisory program; 12  (B) energy operations, providing training in management and 13 administration of electric utilities and bulk fuel storage systems; 14  (2) in the Department of Corrections: 15  (A) Correctional Academy, training individuals applying for a 16 correctional officer position; 17  (B) inmate programs, providing vocational technical training and 18 education courses for inmates preparing to be released from a correctional 19 facility; 20  (C) correctional industries program, providing inmates with jobs 21 while they are incarcerated; 22  (3) in the Department of Environmental Conservation: 23  (A) remote maintenance worker program, providing training and 24 technical assistance to communities to keep drinking water and sewage disposal 25 systems running, and providing on-the-job training to local operators; 26  (B) water and wastewater operator training and assistance; 27  (C) federal drinking water operator training and certification; 28  (4) in the Department of Military and Veterans' Affairs: educational 29 benefits for members of the Alaska National Guard and the Alaska Naval Militia; 30  (5) in the Department of Public Safety: 31  (A) fire service training to maintain emergency training skills

01 for existing fire fighter staff and volunteers and individuals interested in 02 becoming fire fighters; 03  (B) Public Safety Training Academy, training trooper recruits; 04  (6) in the Department of Transportation and Public Facilities: 05  (A) engineer-in-training program, providing on-the-job training 06 for apprentice engineers to enable them to gain the experience necessary to be 07 certified; 08  (B) statewide transportation improvement program, offered by 09 the United States National Highway Institute; 10  (C) local technical assistance program, transferring technical 11 expertise to local governments; 12  (D) Native technical assistance program, transferring technical 13 expertise to Native governments; 14  (E) border technology exchange program, to coordinate highway 15 issues with the Yukon Territory; 16  (7) in the Department of Labor and Workforce Development: vocational 17 rehabilitation client services and special work projects, employment services, including 18 job development, assisting individuals in finding employment, and assisting employed 19 individuals in finding other employment; 20  (8) in the Department of Administration: Alaska Professional 21 Development Institute, providing continuing education and training for employed 22 workers. 23  (h) The University of Alaska shall evaluate the performance of its training 24 programs using the standards set out in (e) of this section and shall provide a report 25 on the results to the council for inclusion in the council's annual report to the 26 legislature. 27  (i) The council shall review each program listed in (f) of this section to 28 determine whether it is in compliance with the standards set out in (d) and (e) of this 29 section. If the council finds that a program has failed to comply with the standards 30 set out in (d) and (e) of this section, it shall notify the program director of the failure. 31 If the program director fails to improve the performance of the program within a

01 reasonable time, the council shall notify the governor and the legislative budget and 02 audit committee that the program is out of compliance. A contract entered into by a 03 state agency relating to a training program set out in (f) of this section must contain 04 terms consistent with this section. 05  (j) A department that operates or contracts for a training program listed in (f) 06 of this section shall pay to the council a management assessment fee not to exceed .75 07 percent of the program's annual operating budget. The total amount received as 08 management assessment fees may not exceed the council's authorized budget for the 09 fiscal year. The council shall, by regulation, establish a method to determine annually 10 the amount of the management assessment fee. If the amount the council expects to 11 collect under this subsection exceeds the authorized budget of the council, the council 12 shall reduce the percentages set out in this subsection so that the total amount of the 13 fees collected approximately equals the authorized budget of the council for the fiscal 14 year. The council shall adopt regulations under AS 44.62 (Administrative Procedure 15 Act) necessary to administer this subsection. 16  (k) Upon the enactment of a new federal or state program relating to work 17 force development, the council shall 18  (1) advise the governor and the legislature on whether the council 19 should provide oversight for the new program under this section; and 20  (2) make recommendations necessary to streamline and coordinate state 21 efforts to meet the guidelines of the new program. 22  (l) For purposes of this section, "program" 23  (1) does not refer to the overall activities of an individual institution 24 or individual fields of study or courses that are not associated with programs for which 25 the council has oversight responsibility; 26  (2) may include a certificate or associate degree course or a course that 27 is not for credit, whether it is offered by a public or private institute or contracted for 28 by the private sector, so long as it is related to employment. 29  Sec. 23.15.585. Administration. (a) The governor shall appoint the executive 30 director for the Alaska Human Resource Investment Council. The department shall 31 provide professional, technical, and administrative staff for the Alaska Human

01 Resource Investment Council. 02  (b) Subject to legislative appropriations, and in accordance with AS 37.07 03 (Executive Budget Act), the council's budget is funded from programs for which the 04 council is the lead state planning and coordinating entity under AS 23.15.575. 05 * Sec. 25. AS 23.15.645(b) is amended to read: 06  (b) When a grant is awarded to the council, the department shall annually 07 provide to the council a priority list of targeted projects or services, based on 08 unemployment statistics, unemployment insurance claims, occupational and industrial 09 projections, availability of other training and employment programs, and other relevant 10 data. The department shall also provide annually to the council a priority list of 11 criteria for eligibility to maximize services to those people most in need of training 12 under AS 23.15.620 - 23.15.660. In developing the priority list for targeted projects 13 and services, the department shall solicit comments from the [DEPARTMENT OF 14 COMMUNITY AND REGIONAL AFFAIRS,] Department of Education and Child 15 Development, the [,] Department of Community [COMMERCE] and Economic 16 Development, the University of Alaska, organized labor, the council, and the 17 administrative entities of the substate service delivery areas established for the council. 18 The department shall give preference to projects and services that train individuals in 19 industries identified in the resident hire report required under AS 36.10.130 as 20 employing a disproportionate percentage of nonresident individuals. 21 * Sec. 26. AS 23.15.660(1) is amended to read: 22  (1) "council" means the Alaska Human Resource Investment Council 23 established in AS 23.15.550 [AS 44.19.620]; 24 * Sec. 27. AS 23.15 is amended by adding new sections to read: 25 Article 6. Business Incentive Training Program. 26  Sec. 23.15.700. Business incentive training program established. (a) There 27 is established in the department the business incentive training program. The incentive 28 program shall be administered as a supplement to the Job Training Partnership Act 29 (P.L. No. 97-300). 30  (b) The purpose of the incentive program is to encourage private industry to 31 provide new job opportunities by offering assistance in training the new work force

01 and in retraining existing employees to implement new technologies. 02  Sec. 23.15.710. Administration. (a) The Alaska Human Resource Investment 03 Council shall oversee the incentive program. The service delivery areas established 04 under 29 U.S.C. 1511 and subject to redesignation under 29 U.S.C. 1515 shall be used 05 in the administration of the incentive program. The private industry councils appointed 06 under 29 U.S.C. 1512 and subject to reconstitution under 29 U.S.C. 1515 shall serve 07 as the private industry councils for the incentive program. 08  (b) The council shall divide appropriations for the incentive program equally 09 among the private industry councils. If a private industry council lacks sufficient 10 money to fund a proposal, the private industry council may apply to the council for 11 additional funding. The council may approve reallocation of money from one service 12 delivery area to another to fund a particular proposal if it finds that the reallocation 13 will best serve the purposes of the program. 14  (c) The council shall adopt regulations under AS 44.62 (Administrative 15 Procedure Act) to implement AS 23.15.700 - 23.15.810. 16  Sec. 23.15.720. Business incentive training plan. (a) A private industry 17 council shall adopt a business incentive training plan for the service delivery area. The 18 plan must extend for two years to coincide with the term for the Job Training 19 Partnership Act (P.L. 97-300) and must contain 20  (1) identification of the entity or entities that will administer the 21 incentive program and be the grant recipient for grants from the state; 22  (2) a description of the services to be provided, including the estimated 23 duration of service and the estimated training cost per participant; 24  (3) procedures for identifying and selecting participants; 25  (4) performance goals established in accordance with standards under 26 AS 23.15.780; 27  (5) procedures for awarding grants to businesses; and 28  (6) the budget for two program years and any proposed expenditures 29 for the succeeding two program years in as much detail as required by the grant 30 administrator designated under AS 23.15.740. 31  (b) If changes in labor market conditions, funding, or other factors require

01 substantial deviation from an approved business incentive training plan, the private 02 industry council and the appropriate elected municipal official or officials shall submit 03 a modification of the plan and the budget for review under AS 23.15.730. 04  Sec. 23.15.730. Review and approval of business incentive training plan. 05 The business incentive training plan shall be published and made available for review 06 and comment as an attachment to the job training plan as set out in 29 U.S.C. 1515. 07 The business incentive training plan is subject to review and approval by the governor. 08  Sec. 23.15.740. Business incentive training grants. (a) Each private industry 09 council shall designate an administrative entity to be the grant recipient and 10 administrator for the region. An employer may apply to the grant administrator for a 11 business incentive grant if the employer is a private for-profit or nonprofit corporation, 12 partnership, or sole proprietor business. The grant administrator shall review 13 applications and award grants. 14  (b) Each grant administrator is responsible for the allocation of funds and the 15 eligibility of those enrolled in its programs. The grant administrator is responsible for 16 taking action against its subcontractors, subgrantees, and other recipients to eliminate 17 abuses in the programs they are carrying out, and to prevent misuse of funds. If the 18 arrangement is included in an approved job training plan, a grant administrator may 19 delegate the responsibility for determining eligibility under reasonable safeguards, 20 including provisions for reimbursement of costs incurred because of erroneous 21 determinations made with insufficient care. 22  (c) A business incentive training grant shall be used to recruit and train eligible 23 employees for newly created permanent or permanent seasonal positions or to enable 24 existing employees to acquire the skills necessary to qualify the employee to 25 implement new technologies. A business incentive training grant may be used for 26 occupations for which there is a demand in the area served or in another area to which 27 the participant is willing to relocate and for emerging technologies in the state. In 28 selecting recruiting and training programs, the private industry councils and the grant 29 administrators may consider whether the occupation in which recruiting or training is 30 sought is in a sector of the economy that has a high potential for sustained demand or 31 growth.

01  (d) Only individuals eligible under the business incentive training plan and 02 residing in the service delivery area may be participants in employment and training 03 activities funded under the business incentive training program. To be eligible for 04 training or education services under AS 23.15.700 - 23.15.810, immediately before 05 beginning training or education under the program a person shall 06  (1) have been unemployed and 07  (A) receiving unemployment insurance benefits; or 08  (B) have exhausted the right to unemployment insurance 09 benefits within the past three years; 10  (2) be liable to be displaced from work within the next six months 11 because of 12  (A) reductions in overall employment within the business; 13  (B) elimination of the person's current job; or 14  (C) a change in the conditions of the employee's job requiring 15 that, to remain employed, the employee must have substantially different skills 16 that the employee does not now possess; or 17  (3) have worked in a position covered by AS 23.20 at any time during 18 the last three years and be ineligible for unemployment insurance benefits because the 19 person 20  (A) was working in a seasonal, temporary, part-time, or other 21 marginal employment; 22  (B) has insufficient qualifying wages because of limited job 23 opportunities; or 24  (C) is employed, but, because the person is underemployed, the 25 person needs employment assistance and training to obtain full employment. 26  (e) Payments to employers for on-the-job training of participants who 27 experience multiple barriers to employment or are eligible under the Job Training 28 Partnership Act (P.L. 97-300) may not average more than 80 percent of the wages paid 29 by the employer to the participant. Payments to employers for on-the-job training of 30 other participants may not average more than 50 percent of the wages paid by the 31 employer to participants. The payments shall be considered to be in compensation for

01 the extraordinary costs associated with training employees for new positions and the 02 lower productivity of the participants. 03  (f) A grant made under the business incentive training program may not be 04 used to duplicate facilities or services available in the area from federal, state, or local 05 sources unless the business incentive training plan establishes that services or facilities 06 under the program would be more effective or more likely to achieve performance 07 goals. 08  (g) A fee may not be charged for placing an individual in or referring an 09 individual to a training program under AS 23.15.700 - 23.15.810. 10  (h) A business incentive training grant may not be awarded to a program that 11 involves political activities. 12  (i) An employer at whose request a participant is offered training shall fulfill 13 the obligation to offer a successful participant in the business incentive training 14 program a position or promotion, as applicable. A participant is considered successful 15 if the participant satisfactorily completes the training program in which the participant 16 was enrolled. 17  Sec. 23.15.750. Compensation for participants. (a) A trainee may not 18 receive a payment for training activities in which the trainee fails to participate. 19  (b) An individual in on-the-job training shall be compensated by the employer 20 at the same rates, including periodic increases, as similarly situated employees or 21 trainees and in accordance with applicable law. However, an individual may not be 22 paid less than the state minimum wage under AS 23.10.065 whether or not the 23 individual is exempt under AS 23.10.055 or 23.10.070. 24  (c) An individual employed in activities authorized under the business 25 incentive training program other than on-the-job training shall be paid wages that are 26 not less than the highest of 27  (1) the state minimum wage under AS 23.10.065; 28  (2) the prevailing rate of pay for individuals employed in similar 29 occupations by the same employer; or 30  (3) the prevailing rate of wages under AS 36.05 or 40 U.S.C. 276a - 31 276a-5, if applicable.

01  (d) Allowances, earnings, and payments to individuals participating in 02 programs under the business incentive training program may not be considered as 03 income in determining eligibility for and the amount of income transfer and in-kind 04 aid furnished under a state program based on need, other than programs under the 05 Social Security Act. 06  (e) Conditions of employment and training must be appropriate and reasonable 07 in light of factors including the type of work, geographical region, and proficiency of 08 the participant. 09  (f) An individual employed in a subsidized job under the business incentive 10 training program shall be provided benefits and working conditions at the same level 11 and to the same extent as other employees working a similar length of time and doing 12 the same type of work. 13  (g) Money from a grant under the business incentive training program may not 14 be used for contributions on behalf of a participant to retirement systems or plans. 15  Sec. 23.15.760. Reporting and record keeping. (a) A grant administrator 16 shall maintain records of each participant's enrollment in a business incentive training 17 program in sufficient detail to demonstrate compliance with AS 23.15.700 - 23.15.810. 18  (b) The council shall adopt regulations concerning retention of records. 19  (c) The council shall, no later than February 1 of each year, prepare a report 20 concerning the incentive program and notify the legislature that the report is available. 21  Sec. 23.15.770. Allowable costs. (a) To be allowable, a cost must be 22 necessary and reasonable for proper and efficient administration of the program. The 23 following costs are not allowable: 24  (1) costs resulting from violations of or failure to comply with federal, 25 state, or local laws and regulations; 26  (2) entertainment costs; and 27  (3) insurance policies offering protection against debts established by 28 the federal government. 29  (b) Personal liability insurance for members of the private industry council is 30 an allowable cost. 31  Sec. 23.15.780. Performance standards. (a) The basic measure of

01 performance for training programs under AS 23.15.700 - 23.15.810 is the increase in 02 jobs in the area and in employment and earnings for participants resulting from 03 participation in the program. In order to determine whether these standards are 04 achieved, the governor shall adopt standards based on appropriate factors. 05  (b) The governor shall provide technical assistance to programs that do not 06 meet performance criteria. If a program fails to meet performance standards for two 07 consecutive years, the governor shall withdraw unencumbered funds from the program. 08  (c) An interested party who is harmed by a change made under this section is 09 entitled to a hearing under AS 44.62 (Administrative Procedure Act). 10  Sec. 23.15.790. Limitation on certain costs. No more than 15 percent of the 11 money available to a service delivery area for a fiscal year may be expended for the 12 cost of administration. For purposes of this section, costs of program support, 13 including counseling, that are directly related to the provision of education or training 14 to participants may not be counted as part of the cost of administration. 15  Sec. 23.15.800. Selection of service providers. (a) The primary 16 consideration in selecting agencies or organizations to deliver services within a service 17 delivery area is the effectiveness of the agency or organization in delivering 18 comparable or related services based on demonstrated performance, in terms of the 19 likelihood of meeting performance goals, cost, quality of training, and characteristics 20 of participants. In complying with this subsection, proper consideration shall be given 21 to community based organizations as service providers. 22  (b) Appropriate education agencies in the service delivery area shall be given 23 the opportunity to provide educational services, unless the grant administrator 24 determines that alternative agencies or organizations would be more effective or would 25 have greater potential to enhance the participants' continued occupational and career 26 growth. 27  (c) The grant administrator may not fund an occupational skills training 28 program unless the level of skills provided in the program is in accordance with 29 guidelines established by the private industry council. 30  Sec. 23.15.810. Definitions. In AS 23.15.700 - 23.15.810, 31  (1) "council" means the Alaska Human Resource Investment Council;

01  (2) "incentive program" means the business incentive training program 02 established under AS 23.15.700; 03  (3) "participant" means an individual receiving education or training, 04 including on-the-job training, under an incentive program grant. 05 * Sec. 28. AS 23.20.110(a) is amended to read: 06  (a) Except as provided in (h) and (i) of this section, the department shall hold 07 information obtained from an employing unit or individual in the course of 08 administering this chapter and determinations as to the benefit rights of an individual 09 confidential and may not disclose them or open them to public inspection in a manner 10 that reveals the identity of the individual or employing unit. A claimant or an 11 employing unit, or the legal representative of the claimant or the employing unit, is 12 entitled to information from the records of the department to the extent necessary to 13 properly present or protest a claim or determination under this chapter. Subject to 14 restrictions that the department prescribes by regulation, the information may be made 15 available to an agency of this state or another state or federal agency charged with the 16 administration of an unemployment compensation law or the maintenance of a system 17 of public employment offices, or, for the purposes of the Federal Unemployment Tax 18 Act, to the Internal Revenue Service of the United States, or, for tax purposes, to the 19 Department of Revenue. Information obtained in the course of administering this 20 chapter or in connection with the administration of the employment service may be 21 made available to persons or agencies for purposes appropriate to the operation of a 22 public employment service or the administration of employment and training programs 23 planned or coordinated by the Alaska Human Resource Investment Council under 24 AS 23.15.550 - 23.15.585 [AS 44.19.620 - 44.19.627]. 25 * Sec. 29. AS 25.27.244(s)(2) is amended to read: 26  (2) "license" 27  (A) means, except as provided in (B) of this paragraph, a 28 license, certificate, permit, registration, or other authorization that, at the time 29 of issuance, will be valid for more than 150 days and that may be acquired 30 from a state agency to perform an occupation, including the following: 31  (i) license relating to boxing or wrestling under

01 AS 05.10; 02  (ii) authorization to perform an occupation regulated 03 under AS 08; 04  (iii) teacher certificate under AS 14.20; 05  (iv) authorization under AS 18.08 to perform emergency 06 medical services; 07  (v) asbestos worker certification under AS 18.31; 08  (vi) boiler operator's license under AS 18.60.395; 09  (vii) certificate of fitness under AS 18.62; 10  (viii) hazardous painting certification under AS 18.63; 11  (ix) security guard license under AS 18.65.400 - 12 18.65.490; 13  (x) license relating to insurance under AS 21.27; 14  (xi) employment agency permit under AS 23.15.330 - 15 23.15.520; 16  (xii) registration as a broker-dealer, agent, or investment 17 adviser under AS 45.55.030; 18  (xiii) certification as a pesticide applicator under 19 AS 46.03.320; 20  (xiv) certification as a storage tank worker or contractor 21 under AS 46.03.375; 22  (xv) certification as a water and wastewater works 23 operator under AS 46.30; and 24  (xvi) commercial crewmember fishing license under 25 AS 16.05.480 other than an entry permit or interim-use permit under 26 AS 16.43; 27  (B) does not include 28  (i) a vessel license issued under AS 16.05.490 or 29 16.05.530; 30  (ii) a license issued under AS 14.37 or AS 47.35; 31  (iii) a business license issued under AS 43.70;

01  (iv) an entry permit or interim-use permit issued under 02 AS 16.43; or 03  (v) a driver's license issued under AS 28.15; 04 * Sec. 30. AS 29.06.040(c) is amended to read: 05  (c) In addition to the regulations governing annexation by local action adopted 06 under AS 44.33.812 [AS 44.47.567], the Local Boundary Commission shall establish 07 procedures for annexation and detachment of territory by municipalities by local 08 action. The procedures established under this subsection must include a provision that 09  (1) a proposed annexation and detachment must be approved by a 10 majority of votes on the question cast by voters residing in the area proposed to be 11 annexed or detached; 12  (2) municipally owned property adjoining the municipality may be 13 annexed by ordinance without voter approval; and 14  (3) an area adjoining the municipality may be annexed by ordinance 15 without an election if all property owners and voters in the area petition the governing 16 body. 17 * Sec. 31. AS 29.60.599(9) is amended to read: 18  (9) "village" means a place within the unorganized borough or within 19 a borough if the power, function, or service for which a grant application is submitted 20 under AS 29.60.500 - 29.60.599 is not exercised or provided by the borough on an 21 areawide or nonareawide basis at the time the grant application is submitted, that 22  (A) has irrevocably waived, in a form approved by the 23 Department of Law, any claim of sovereign immunity that might arise in 24 connection with the use of grant money under this chapter; and 25  (B) has 26  (i) a council organized under 25 U.S.C. 476 (sec. 16 of 27 the Indian Reorganization Act); 28  (ii) a traditional village council recognized by the United 29 States as eligible for federal aid to Indians; or 30  (iii) a council recognized by the commissioner under 31 regulations adopted by the department to determine and give official

01 recognition of village entities under AS 44.33.755(b) [AS 44.47.150(b)]. 02 * Sec. 32. AS 29.65.060(f) is amended to read: 03  (f) For purposes of determining the per capita entitlement under (a) of this 04 section, the population of a municipality shall be the population determined by the 05 former commissioner of community and regional affairs under former AS 43.18.010 06 for the program year beginning July 1, 1978, for a municipality whose entitlement was 07 determined under former AS 29.18.201 or 29.18.202. 08 * Sec. 33. AS 30.13.010(a) is amended to read: 09  (a) The residents of each area of the state within the boundaries of a regional 10 housing authority established under AS 18.55.996 that [WHICH] is located in whole 11 or in part in the unorganized borough of the state may create a public body corporate 12 and politic under the name and style of the "Resource Development Authority" with 13 all or any significant part of the name of the region of the state inserted. The 14 boundaries of the authority created shall be coterminous with the portion of the 15 applicable regional housing authority that lies in the unorganized borough. Creation 16 of an authority is initiated by a petition filed with the Department of Community and 17 Economic Development [REGIONAL AFFAIRS] and a statement submitted to the 18 governor. The petition must include the proposed name of the authority, its 19 boundaries, and a statement of the facilities proposed to be provided by the authority. 20 The petition must be signed by 15 percent of the total number of residents in the 21 portion of the applicable regional housing authority that lies in the unorganized 22 borough who cast votes in the preceding general election. The Department of 23 Community and Economic Development [REGIONAL AFFAIRS] shall review 24 petitions for content and signatures. If the department determines that the petition is 25 adequate, it shall transmit the petition to the director of elections. 26 * Sec. 34. AS 36.30.170(g) is amended to read: 27  (g) The division of vocational rehabilitation in the Department of Labor and 28 Workforce Development [EDUCATION] shall add to its current list of qualified 29 employment programs a list of individuals who qualify as persons with a disability 30 under (e) of this section and of persons who qualify under (f) of this section as 31 employers with 50 percent or more of their employees being persons with disabilities.

01 A person must be on this list at the time the bid is opened in order to qualify for a 02 preference under (e) or (f) of this section. 03 * Sec. 35. AS 36.30.850(b)(11) is amended to read: 04  (11) agreements with providers of services under AS 14.38.100 05 [AS 44.47.250]; AS 47.07; AS 47.08; AS 47.10; 47.17; AS 47.24; and AS 47.27, 06 including contractors under AS 47.27.050; 07 * Sec. 36. AS 36.30.850(b)(30) is amended to read: 08  (30) contracts entered into with a regional development organization; 09 in this paragraph, "regional development organization" has the meaning given in 10 AS 44.33.895 [AS 44.47.900]; 11 * Sec. 37. AS 37.05.315(a) is amended to read: 12  (a) When an amount is appropriated or allocated as a grant to a municipality, 13 the Department of Community and Economic Development [ADMINISTRATION] 14 shall promptly notify the municipality of the availability of the grant. When the 15 Department of Community and Economic Development [ADMINISTRATION] 16 receives an agreement executed by the municipality that [WHICH] provides that the 17 municipality (1) will spend the grant for the purposes specified in the appropriation or 18 allocation; (2) will allow, on request, an audit by the state of the uses made of the 19 grant; and (3) assures that, to the extent consistent with the purpose of the 20 appropriation or allocation, the facilities and services provided with the grant will be 21 available for the use of the general public, the Department of Community and 22 Economic Development [ADMINISTRATION] shall pay the grant directly to the 23 municipality. The agreement executed by a municipality under this section shall be 24 on a form furnished by the Department of Community and Economic Development 25 [ADMINISTRATION] and shall be executed within 60 days after the effective date 26 of the appropriation or allocation. 27 * Sec. 38. AS 37.05.315(d) is amended to read: 28  (d) Not less than 20 percent of a grant shall be paid to a municipality within 29 10 days of the effective date of the agreement under (a) of this section. The remainder 30 of the grant shall be paid either in monthly installments equal to the amount of grant 31 money the municipality expended in the previous month or in a lump sum as

01 determined by the Department of Community and Economic Development 02 [ADMINISTRATION]. 03 * Sec. 39. AS 37.06.010(j) is amended to read: 04  (j) In this section, unless specified otherwise, "department" means the 05 Department of Community and Economic Development [ADMINISTRATION]. 06 * Sec. 40. AS 37.06.020(i) is amended to read: 07  (i) The limitations of AS 44.33.745 [AS 44.47.140] do not apply to a grant 08 made under this section. 09 * Sec. 41. AS 37.06.040 is amended to read: 10  Sec. 37.06.040. Municipalities organized under federal law. An entity 11 organized under federal law as an Indian reserve that existed before enactment of 43 12 U.S.C. 1618(a) and is continued in existence under that subsection is a municipality 13 for purposes of AS 37.06.010 - 37.06.090 and may not receive a grant under 14 AS 37.06.020. In addition to other eligibility requirements applicable to municipalities, 15 to qualify to receive a grant under AS 37.06.010, a municipality organized under 16 federal law as an Indian reserve shall form a community development corporation with 17 authority to determine how the grant money will be used. The corporation's charter 18 must require that the governing board of the corporation shall be elected at an annual 19 election open to all residents of the municipality who are registered and qualified to 20 vote in state elections. The Department of Community and Economic Development 21 [ADMINISTRATION] may distribute money for the municipality only to a corporation 22 organized in accordance with this section and only after the corporation has delivered 23 a written waiver of sovereign immunity from legal action by the state to recover all 24 or a portion of the money distributed under AS 37.06.010. 25 * Sec. 42. AS 37.06.080 is amended to read: 26  Sec. 37.06.080. Adoption of regulations. The Department of Community 27 and Economic Development [ADMINISTRATION FOR GRANTS UNDER 28 AS 37.06.010 AND THE DEPARTMENT OF COMMUNITY AND REGIONAL 29 AFFAIRS FOR GRANTS UNDER AS 37.06.020] 30  (1) may adopt regulations that impose additional requirements or 31 procedures to implement, interpret, make specific, or otherwise carry out the

01 [APPLICABLE] provisions of this chapter [FOR GRANTS ADMINISTERED BY 02 THE DEPARTMENT]; 03  (2) shall adopt regulations providing for periodic audits of the use of 04 money for grants [ADMINISTERED BY THE DEPARTMENT] under this chapter, 05 including audit of the department's determination of the value of, and adequacy of the 06 verification of the actual use of, locally funded or contributed labor on projects funded 07 by a grant under this chapter. 08 * Sec. 43. AS 38.06.025(a) is amended to read: 09  (a) The board consists of the commissioner of community [COMMERCE] and 10 economic development; the commissioner of revenue [COMMUNITY AND 11 REGIONAL AFFAIRS]; the commissioner of natural resources, who is a nonvoting 12 member; and five public members. 13 * Sec. 44. AS 39.25.120(c)(15) is amended to read: 14  (15) [THE DEPUTY DIRECTOR OF THE DIVISION OF TOURISM 15 AND] the deputy director of the division of insurance in the Department of 16 Community [COMMERCE] and Economic Development; 17 * Sec. 45. AS 39.25.158(b) is amended to read: 18  (b) After an employee requests to return to work, the reemployment benefits 19 administrator of the division of workers' compensation or the director of vocational 20 rehabilitation in the Department of Labor and Workforce Development 21 [EDUCATION] shall review the request and certify that the employee is able to return 22 to work under (c), (d), (e), or (f) of this section, or defer certification until the 23 employee completes retraining under (f) of this section. 24 * Sec. 46. AS 39.50.200(b)(18) is amended to read: 25  (18) Local Boundary Commission ( AS 44.33.810 [AS 44.47.565]); 26 * Sec. 47. AS 39.50.200(b)(55) is amended to read: 27  (55) Alaska Human Resource Investment Council (AS 23.15.550) 28 [(AS 44.19.620)]. 29 * Sec. 48. AS 42.45.060(a) is amended to read: 30  (a) A loan committee consisting of five [SEVEN] members is established. The 31 committee is composed of [THE COMMISSIONER OF COMMUNITY AND

01 REGIONAL AFFAIRS,] the commissioner of community [COMMERCE] and 02 economic development, the director of management and budget, or the designees of 03 the commissioner [COMMISSIONERS] or the director, and three [FOUR] public 04 members. 05 * Sec. 49. AS 44.19.145(a) is amended to read: 06  (a) The office shall 07  (1) provide technical assistance to the governor and the legislature in 08 identifying long range goals and objectives for the state and its political subdivisions; 09  (2) prepare and maintain a state comprehensive development plan; 10  (3) provide information and assistance to state agencies to aid in 11 governmental coordination and unity in the preparation of agency plans and programs; 12  (4) review planning within state government as may be necessary for 13 receipt of federal, state, or other funds; 14  (5) participate with other countries, provinces, states, or subdivisions 15 of them in international or interstate planning, and assist the state's local governments, 16 governmental conferences, and councils in planning and coordinating their activities; 17  (6) encourage educational and research programs that further state 18 planning and development, and provide administrative and technical services for them; 19  (7) publish [SUCH] statistical information or other documentary 20 material that [AS] will further the provisions and intent of AS 44.19.141 - 44.19.152; 21  (8) assist the governor and the Department of Community and 22 Economic Development [REGIONAL AFFAIRS] in coordinating state agency 23 activities that have an effect on the solution of local and regional development 24 problems; 25  (9) serve as a clearinghouse for information, data, and other materials 26 that may be helpful or necessary to federal, state, or local governmental agencies in 27 discharging their respective responsibilities or in obtaining federal or state financial or 28 technical assistance; 29  (10) review all proposals for the location of capital improvements by 30 any state agency and advise and make recommendations concerning location of these 31 capital improvements;

01  (11) render, on behalf of the state, all federal consistency 02 determinations and certifications authorized by 16 U.S.C. 1456 (Sec. 307, Coastal Zone 03 Management Act of 1972), and each conclusive state consistency determination when 04 a project requires a permit, lease, or authorization from two or more state resource 05 agencies. 06 * Sec. 50. AS 44.19.155(a) is amended to read: 07  (a) There is created in the Office of the Governor the Alaska Coastal Policy 08 Council. The council consists of the following: 09  (1) nine public members appointed by the governor from a list 10 comprised of at least three names from each region, nominated by the municipalities 11 of each region; the nominees shall be the mayor or member of the assembly or council 12 of a municipality; one public member shall be appointed from each of the following 13 general regions: 14  (A) northwest Alaska, including, generally, the area of the North 15 Slope Borough and the Northwest Arctic borough [REGIONAL 16 EDUCATIONAL ATTENDANCE AREA]; 17  (B) Bering Straits, including, generally, the area of the Bering 18 Straits regional educational attendance area; 19  (C) southwest Alaska, including, generally, the area within the 20 Lower Yukon, Lower Kuskokwim, and Southwest [, AND LAKE & 21 PENINSULA] regional educational attendance areas and the Lake and 22 Peninsula and Bristol Bay Boroughs [BOROUGH]; 23  (D) Kodiak-Aleutians, including the area of the Kodiak Island 24 and Aleutian East Borough [BOROUGH] and the Aleutian, Adak and Pribilof 25 regional educational attendance areas; 26  (E) Upper Cook Inlet, including the Municipality of Anchorage 27 and the Matanuska-Susitna Borough; 28  (F) Lower Cook Inlet, including, generally, the area within the 29 Kenai Peninsula Borough; 30  (G) Prince William Sound, including, generally, the area east 31 of the Kenai Peninsula Borough to 141 W. longitude;

01  (H) northern Southeast Alaska, including the area southeast of 02 141 W. longitude and north of 57 N. latitude, including the entirety of the City 03 and Borough of Sitka; and 04  (I) southern Southeast Alaska, including that portion of 05 southeastern Alaska not contained within the area described in (H) of this 06 paragraph; 07  (2) each of the following: 08  (A) the director of the office of management and budget; 09  (B) the commissioner of community [COMMERCE] and 10 economic development; 11  (C) [THE COMMISSIONER OF COMMUNITY AND 12 REGIONAL AFFAIRS; 13  (D)] the commissioner of environmental conservation; 14  (D) [(E)] the commissioner of fish and game; 15  (E) [(F)] the commissioner of natural resources; and 16  (F) [(G)] the commissioner of transportation and public 17 facilities. 18 * Sec. 51. AS 44.19.155(d) is amended to read: 19  (d) Each member of the council shall select one person to serve as a 20 permanent alternate at meetings of the council. If a member of the council is unable 21 to attend, the member shall advise the alternate who may attend and act in the place 22 of the member. The alternate for a public member appointed under (a)(1) of this 23 section shall, at the time of the alternate's designation and throughout the period of 24 service as a permanent alternate, be the mayor or member of the assembly or council 25 of a municipality within the region from which the permanent member is appointed. 26 The alternate for the director of the office of management and budget, serving under 27 (a)(2)(A) of this section, shall be the director's designee within that office. The 28 alternate for a designated member serving under (a)(2)(B) - (F) [(a)(2)(B) - (G)] of this 29 section shall be a deputy commissioner of the department or the director of a division 30 in the department. The names of alternates shall be filed with the council. 31 * Sec. 52. AS 44.27.020 is amended to read:

01  Sec. 44.27.020. Duties of department. The Department of Education and 02 Child Development shall 03  (1) administer the state's program of education at the elementary, 04 secondary, and adult levels, including, but not limited to, programs of vocational 05 education and training, [VOCATIONAL REHABILITATION,] library services, and 06 correspondence courses [, AND ADULT BASIC EDUCATION], but not including 07 degree programs of postsecondary education; 08  (2) administer the historical library; 09  (3) plan, finance, and operate related school and educational activities 10 and facilities ; and 11  (4) license and regulate child care facilities . 12 * Sec. 53. AS 44.31.020 is amended to read: 13  Sec. 44.31.020. Duties of department. The Department of Labor and 14 Workforce Development shall 15  (1) enforce the laws, and adopt regulations under them concerning 16 employer-employee relationships, including the safety, hours of work, wages, and 17 conditions of workers, including children; 18  (2) accumulate, analyze, and report labor statistics; 19  (3) operate systems of workers' compensation and unemployment 20 insurance; and 21  (4) gather data reflecting the cost of living in the various election 22 districts of the state upon request of the director of personnel under AS 39.27.030 ; and 23  (5) operate the federally funded employment and training programs 24 under 29 U.S.C. 1501 - 1792b (Job Training Partnership Act); 25  (6) administer the state's program of adult basic education . 26 * Sec. 54. AS 44.33.010 is amended to read: 27  Sec. 44.33.010. Commissioner of community [COMMERCE] and economic 28 development. The principal executive officer of the Department of Community 29 [COMMERCE] and Economic Development is the commissioner of community 30 [COMMERCE] and economic development. Whenever a statute provides that the 31 commissioner is a member of a board, council, or other similar entity, the

01 commissioner may designate an employee of the department to act in the 02 commissioner's place. 03 * Sec. 55. AS 44.33.020 is repealed and reenacted to read: 04  Sec. 44.33.020. Duties of department. The Department of Community and 05 Economic Development shall 06  (1) advise and assist local governments; 07  (2) advise the governor and other commissioners on the delivery of 08 government services to rural areas, including services relating to public safety, justice, 09 economic development, natural resource management, education, and public health; 10  (3) make recommendations to the governor and other commissioners 11 about policy changes that would affect rural governments and rural affairs; 12  (4) serve as staff for the Local Boundary Commission; 13  (5) conduct studies and carry out experimental and pilot projects for the 14 purpose of developing solutions to community and regional problems; 15  (6) promote cooperative solutions to problems affecting more than one 16 community or region, including joint service agreements, regional compacts, and other 17 forms of cooperation; 18  (7) serve as a clearinghouse for information useful in solution of 19 community and regional problems, and channel to the appropriate authority requests 20 for information and services; 21  (8) advise and assist community and regional governments on matters 22 of finance, including but not limited to bond marketing and procurement of federal 23 funds; 24  (9) prepare suggested guidelines relating to the content of notice of 25 bond sale advertisements, prospectuses, and other bonding matters issued by local 26 governments; 27  (10) administer state funds appropriated for the benefit of unorganized 28 regions within the state, allowing for maximum participation by local advisory councils 29 and similar bodies; 30  (11) as assigned through a delegation by the governor, administer and 31 implement the state's role in the federal community development quota program

01 established under 16 U.S.C. 1855(i) or a successor federal program; the department 02 may adopt regulations under a delegation from the governor to implement duties under 03 this paragraph; 04  (12) carry out those administrative functions in the unorganized 05 borough that the legislature may prescribe; 06  (13) study existing and proposed laws and state activities that affect 07 community and regional affairs and submit to the governor recommended changes in 08 those laws and activities; 09  (14) coordinate activities of the state that affect community and 10 regional affairs; 11  (15) assist in the development of new communities and serve as the 12 agent of the state for purposes of participation in federal programs relating to new 13 communities; 14  (16) supervise planning, management, and other activities required for 15 local eligibility for financial aid under those federal and state programs that provide 16 assistance to community and regional governments; 17  (17) advise and assist municipalities on procedures of assessment, 18 valuation, and taxation, and notify municipalities of major errors in those procedures; 19  (18) apply for, receive, and use funds from federal and other sources, 20 public or private, for use in carrying out the powers and duties of the department; 21  (19) request and utilize the resources of other agencies of state 22 government in carrying out the purposes of this chapter to the extent such utilization 23 is more efficient than maintaining departmental staff, reimbursing the other agencies 24 when appropriate; 25  (20) carry out the powers and duties assigned it under AS 42.45; 26  (21) administer state and, as appropriate, federal programs for revenue 27 sharing, grants, and other forms of financial assistance to community and regional 28 governments; 29  (22) administer the state programs relating to commerce, enforce the 30 laws relating to these programs, and adopt regulations under these laws; 31  (23) register corporations;

01  (24) collect corporation franchise taxes; 02  (25) enforce state laws regulating public utilities and other public 03 service enterprises, banking and securities, insurance, and other businesses and 04 enterprises touched with a public interest; 05  (26) make veterans' loans; 06  (27) furnish the budgeting, clerical, and administrative services for 07 regulatory agencies and professional and occupational licensing boards not otherwise 08 provided for; 09  (28) conduct studies, enter into contracts and agreements, and make 10 surveys relating to the economic development of the state and, when appropriate, 11 assemble, analyze, and disseminate the findings obtained; 12  (29) provide factual information and technical assistance for potential 13 industrial and commercial investors; 14  (30) receive gifts, grants, and other aid that facilitate the powers and 15 duties of the department from agencies and instrumentalities of the United States or 16 other public or private sources; 17  (31) establish and activate programs to achieve balanced economic 18 development in the state and advise the governor on economic development policy 19 matters; 20  (32) formulate a continuing program for basic economic development 21 and for the necessary promotion, planning and research that will advance the economic 22 development of the state; 23  (33) cooperate with private, governmental , and other public institutions 24 and agencies in the execution of economic development programs; 25  (34) review the programs and annual reports of other departments and 26 agencies as they are related to economic development and prepare an annual report on 27 the economic growth of the state; 28  (35) administer the economic development programs of the state; 29  (36) perform all other duties and powers necessary or proper in relation 30 to economic development and planning for the state; 31  (37) request tourism-related businesses in the state to provide data

01 regarding occupancy levels, traffic flow and gross receipts and to participate in visitor 02 surveys conducted by the department; data collected under this paragraph that discloses 03 the particulars of an individual business is not a matter of public record and shall be 04 kept confidential; however, this restriction does not prevent the department from using 05 the data to formulate tourism economic impact information including expenditure 06 patterns, tax receipts and fees, employment and income attributable to tourism, and 07 other information considered relevant to the planning, evaluation and policy direction 08 of tourism in the state; 09  (38) provide administrative and budgetary services to the real estate 10 commission under as 08.88 as requested by the commission; 11  (39) sell at cost, to the extent possible, publications and promotional 12 materials developed by the department; 13  (40) as delegated by the governor, administer under 16 U.S.C. 1856 the 14 internal waters foreign processing permit procedures and collect related fees; 15  (41) administer state laws relating to the issuance of business licenses; 16  (42) comply with AS 15.07.055 to serve as a voter registration agency 17 to the extent required by state and federal law, including 42 U.S.C. 1973gg (National 18 Voter Registration Act of 1993); 19  (43) foster the growth of international trade within the state and 20 administer Alaska foreign offices; 21  (44) carry out other functions and duties, consistent with law, necessary 22 or appropriate to accomplish the purpose of this chapter. 23 * Sec. 56. AS 44.33 is amended by adding new sections to article 1 to read: 24  Sec. 44.33.112. Fees for publications, research data, and other services. 25 The commissioner may establish by regulation and the department may charge 26 reasonable fees for department publications, research data, and other centralized 27 administrative services to cover the cost of reproduction, printing, mailing, distribution, 28 and other centralized administrative services. 29  Sec. 44.33.115. Exxon Valdez oil spill unincorporated rural community 30 grant fund. There is created in the department the Exxon Valdez oil spill 31 unincorporated rural community grant fund. The fund consists of money appropriated

01 to the fund from the Exxon Valdez oil spill restoration fund, the Alyeska settlement 02 fund, and other sources. Appropriations to the fund do not lapse unless otherwise 03 provided by the legislature in the bill making the appropriation to the fund. The 04 department may use the fund to make grants to unincorporated rural communities in 05 the area affected by the Exxon Valdez oil spill for capital projects for purposes of 06 restoring, replacing, or enhancing subsistence resources or services or other services 07 damaged or lost as the result of the Exxon Valdez oil spill. In this section, 08  (1) "Alyeska settlement fund" means the trust fund established in the 09 state treasury for the purpose of receiving, holding, and disbursing the settlement 10 proceeds received by the state under the Agreement and Consent Decree in re: The 11 Exxon Valdez, United States District Court, District of Alaska, Case No. A92-175 12 Civil, decree entered November 25, 1992; 13  (2) "Exxon Valdez oil spill restoration fund" means the fund established 14 by the Department of Revenue to implement the judgment entered by the United States 15 District Court for Alaska in the criminal case United States of America v. Exxon 16 Shipping Company and Exxon Corporation, No. A90-015 CR. 17  Sec. 44.33.118. Definitions. In AS 44.33.010 - 44.33.118, 18  (1) "commissioner" means the commissioner of community and 19 economic development; 20  (2) "department" means the Department of Community and Economic 21 Development. 22 * Sec. 57. AS 44.33.120(b) is amended to read: 23  (b) The Department of Community and Economic Development [ALASKA 24 DIVISION OF TOURISM] shall 25  (1) cooperate with the tourism marketing council and organizations in 26 the private sector for the promotion and development of tourism and conventions into 27 and within the state; 28  (2) coordinate with municipal, state, and federal agencies for the 29 development and promotion of tourism resources and conventions in the state; 30  (3) review and approve the procurement documents and procedures of 31 the tourism marketing council to ensure compliance with applicable laws and

01 regulations; 02  (4) promote and develop the state's tourist and convention industry by 03 any of the following: 04  (A) publicizing state attractions through such means as display 05 advertising in magazines and newspapers, advertising on radio and television 06 or other advertising media, publishing pamphlets, brochures and other graphic 07 and pictorial materials, or [BY] aiding and assisting representatives of the 08 media, to ensure greater coverage of the visitor attractions in the state; 09  (B) participation in travel shows; 10  (C) increasing the awareness of the citizens of the state at the 11 statewide, regional, and community level of the economic importance of the 12 visitor industry; 13  (D) assisting potential investors in creating new visitor facilities; 14  (E) administering programs of the state in which the state 15 provides matching funds for municipalities of the state or nonprofit 16 organizations that undertake the promotion of visitor travel to and the 17 development of visitor amenities in the state; 18  (F) administering visitor information centers; 19  (G) conducting research to evaluate the effectiveness of the 20 tourism marketing council's marketing programs; 21  (H) analyzing the effect on the state's visitor industry of state 22 land and resource development projects; 23  (I) organizing, administering, and evaluating demonstration 24 projects for the promotion of the state's visitor industry and the development 25 of new tourism destination markets; and 26  (J) administering grants under AS 44.33.135. 27 * Sec. 58. AS 44.33.135(a) is amended to read: 28  (a) A municipality, a nonprofit corporation formed under AS 10.20, or a bona 29 fide nonprofit civic, fraternal, or service organization may receive, as a grant, matching 30 money from the state for up to 50 percent of the costs of a program or project that the 31 commissioner of community and economic development [DIRECTOR OF

01 TOURISM] determines is consistent with the purposes of AS 44.33.119 and is likely 02 to promote or develop visitor travel, including 03  (1) the promotion of conventions; 04  (2) the construction, improvement, or operation of visitor destination 05 facilities and tourist attractions; and 06  (3) the development and preservation of attractions of historical, 07 contemporary, recreational, or cultural interest. 08 * Sec. 59. AS 44.33.705(a) is amended to read: 09  (a) Unless the commissioner contracts with a qualified trade association under 10 (b) of this section, the governing body of the council is a board of directors consisting 11 of [THE DIRECTOR OF TOURISM,] the commissioner of community 12 [COMMERCE] and economic development [,] and the commissioners 13 [COMMISSIONER] of two other [ANOTHER] principal executive departments 14 [DEPARTMENT] designated by the governor. 15 * Sec. 60. AS 44.33.705(c) is amended to read: 16  (c) If the commissioner contracts with a qualified trade association under (b) 17 of this section, the governing body of the council is a board of directors consisting of 18 21 members and subject to the following provisions: 19  (1) a board member shall 20  (A) be involved in a visitor or recreation industry business; 21  (B) have training in a field such as marketing; 22  (C) be an officer or a senior staff member of a local 23 government or nonprofit enterprise established to promote the visitor industry; 24 or 25  (D) have business or government experience that would 26 materially enhance the member's ability to contribute to the planning, 27 execution, or evaluation of a visitor industry promotional marketing campaign; 28  (2) the contract shall provide that the trade association may select up 29 to 10 board members; the governor may remove a member of the board selected under 30 this paragraph on the delivery by the governor to the board of a written statement 31 explaining the reasons for the removal;

01  (3) the commissioner of community and economic development 02 [DIRECTOR OF TOURISM] is a member of the board; the governor shall appoint 10 03 other board members; each board member appointed by the governor serves at the 04 pleasure of the governor; in making appointments to the board under this paragraph, 05 the governor shall ensure that the board, including members selected under (2) of this 06 subsection, is broadly representative of the different regions of the state and the 07 various sectors of the visitor industry; 08  (4) eleven members of the board constitute a quorum for the transaction 09 of business and the exercise of the powers and duties of the board, and any action by 10 the board requires 11 affirmative votes; 11  (5) the governor shall appoint a member of the board to serve as 12 presiding officer of the board; the board shall elect other necessary officers from 13 among its members annually; 14  (6) a board member may not participate or vote by proxy; 15  (7) the board shall meet at least four times a year at the call of the 16 presiding officer or upon the written request of seven members of the board; 17  (8) the members of the board appointed by the governor serve 18 staggered three-year terms, subject to continuation of the contract, and may be 19 reappointed; 20  (9) a person appointed to fill a vacancy on the board holds office for 21 the balance of the term of the person's predecessor; 22  (10) board members receive no salary for serving in that position, but 23 are entitled to per diem and travel expenses under AS 39.20.180, except as provided 24 in AS 44.33.733; the contract must provide that the trade association will reimburse 25 the council for per diem and travel expenses paid to those board members appointed 26 by the trade association; reimbursement under this paragraph does not qualify as a part 27 of the association's required contribution under (b) of this section; 28  (11) notwithstanding AS 39.52, a board member who is a member of 29 the qualified trade association that has contracted with the department under (b) of this 30 section may vote or take action on a matter that might benefit the trade association or 31 members of the trade association, including the issuance of contracts or the granting

01 of rights to the trade association, but shall disclose the person's membership in the 02 trade association before the vote or action; this paragraph may not be interpreted to 03 allow a board member or an immediate family member of a board member to receive, 04 apply for, be a party to, have a personal or financial interest in, or attempt to acquire 05 a grant or contract made by the council; in this paragraph, "immediate family member" 06 has the meaning given in AS 39.52.960. 07 * Sec. 61. AS 44.33.720(a) is amended to read: 08  (a) The council shall 09  (1) conduct a tourism marketing program designed to accomplish the 10 purposes of AS 44.33.700 - 44.33.735; the marketing program must include promotion 11 of the state as a destination and promotion of all forms of travel to the state, including 12 travel by air, highway, and water; 13  (2) prepare and implement plans for the promotion of Alaska tourism, 14 including necessary research; 15  (3) submit an annual report to the governor describing the activities of 16 the council and notify the legislature that the report is available; 17  (4) make available to all interested persons, including tourism 18 businesses, a quarterly report of the council's actions and activities; 19  (5) annually submit a proposed operating budget to the commissioner, 20 to be used by the Department of Community [COMMERCE] and Economic 21 Development to prepare and submit the operating budget of the council under 22 AS 44.33.725; 23  (6) provide advice, on the request of the commissioner of community 24 and economic development [DIRECTOR OF TOURISM], on the programs of the 25 Department of Community and Economic Development that relate to tourism 26 [DIVISION]; 27  (7) prepare a report by the 10th day of each regular session of the 28 legislature, describing how the contractual money was spent in the first half of the year 29 and explaining the plan for expenditures during the second half of the year; the council 30 shall notify the legislature that the report is available; 31  (8) consider methods to fund tourism marketing using both public and

01 private assets; and 02  (9) consider methods of providing for the financial self-sufficiency of 03 the council. 04 * Sec. 62. AS 44.33 is amended by adding new sections to read: 05 Article 7A. Rural Development. 06  Sec. 44.33.740. Powers and duties. To promote development of rural areas 07 of the state, the department is authorized to 08  (1) investigate social and economic conditions of rural areas to 09 determine the need to expand economic opportunities and improve living conditions; 10  (2) formulate a coordinated program to broaden and diversify the 11 economic base of rural areas; 12  (3) coordinate administration of emergency relief, surplus food 13 distribution, or other public assistance programs, except the regular relief and 14 assistance programs of the federal government in rural areas; 15  (4) formulate and conduct a program of construction of basic facilities 16 to improve health, welfare, and economic security and provide employment and 17 income in the rural areas; 18  (5) promote training and educational programs designed to expand 19 employment opportunities for residents of rural areas; 20  (6) enter into agreements with other state agencies and departments to 21 provide for the distribution in rural communities of surplus electrical power from state- 22 owned power sources located in those communities and to expend funds for this purpose; 23  (7) make grants to communities for bulk fuel storage facilities; 24  (8) cooperate with the Department of Environmental Conservation and 25 other agencies to provide technical assistance to communities in the installation, 26 operation, and management of bulk fuel storage facilities. 27  Sec. 44.33.745. Limitations. A program of the department under 28 AS 44.33.740 in a rural area may not exceed $100,000 in cost a year. 29  Sec. 44.33.750. Bulk fuel storage facilities grant fund. (a) There is 30 established in the department the bulk fuel storage facilities grant fund. Grants may 31 be made by the department from this fund to a community to acquire and install

01 community bulk storage facilities. 02  (b) Grants made under this section for the acquisition and installation of a bulk 03 fuel storage facility may not exceed $100,000 per community. 04  (c) If the governing body of two or more communities determine that their fuel 05 requirements may be served by a single bulk fuel storage facility, the communities 06 may jointly apply for grants to acquire and install a single bulk fuel storage facility. 07 When communities apply jointly under this subsection, the limitation in (b) of this 08 section is multiplied by the number of communities that submit the joint application. 09  (d) Before a grant is made under this section, the city council or, if the 10 community is not incorporated, a reasonable representative body in the community 11 shall agree in writing to maintain and operate the bulk storage facility to be 12 constructed with the proceeds of the grant. 13  Sec. 44.33.755. Land conveyed in trust. (a) The commissioner 14  (1) shall accept, administer, and dispose of land conveyed to the state 15 in trust by village corporations under 43 U.S.C. 1613(c)(3) (Sec. 14(c)(3) of the Alaska 16 Native Claims Settlement Act) for the purposes specified in that section; 17  (2) may, with the concurrence of an appropriate village entity 18 recognized by the commissioner under (b) of this section or, in the absence of an 19 appropriate village entity, under procedures prescribed by regulations of the 20 commissioner, accept, administer, and dispose of land conveyed in trust by a state or 21 federal agency and by the dissolution of a municipality under AS 29.06.450 - 22 29.06.530. 23  (b) Transfer of land by sale, lease, right-of-way, easement, or permit, including 24 transfer of surface resources, may be made by the commissioner only after approval 25 of an appropriate village entity such as the traditional council, a village meeting, or a 26 village referendum. This approval shall be by resolution filed with the department. 27  (c) Within one complete state fiscal year after the incorporation of a 28 municipality in the village or of a municipality that includes all or part of the village, 29 land acquired under this section shall be conveyed without cost to the municipality, 30 and the municipality shall succeed to all the entrusted interest in the land. 31  (d) Separate accounts shall be maintained in the name of each village for the

01 land, including the revenue from the land, acquired from each village corporation 02 under this section. 03  (e) Upon the conveyance of land to a municipality under this section, the 04 commissioner shall account to the municipality for all profits including interest 05 generated from the land. The municipality may then request the governor to submit 06 a request to the legislature for an appropriation for the amount due the municipality. 07  (f) Title to or an interest in land acquired by the department under this section 08 may not be acquired by adverse possession or prescription. Notwithstanding (a) - (e) 09 of this section, on the dissolution of a municipality under AS 29.06.450 - 29.06.530, 10 unimproved land that was owned by the municipality on the date of its dissolution and 11 received by the municipality from the state under a municipal land grant entitlement 12 program is transferred to the commissioner of natural resources. 13  (g) For the purposes of this section, "municipality" includes only first and 14 second class cities incorporated under the laws of the state. 15  Sec. 44.33.760. Loan information officers. (a) The department may provide 16 itinerant loan information officers to serve persons who reside outside the major 17 population centers of the state. 18  (b) The loan information officers shall be trained, to the extent that the 19 department considers necessary, in a program administered by the department and 20 approved by the Alaska Housing Finance Corporation, the Alaska Industrial 21 Development and Export Authority, and the principal departments of the executive 22 branch that administer loan programs. 23  (c) A majority of the loan information officers shall be persons who are 24 conversant in Alaska Native languages that are spoken by a significant number of 25 Alaska Natives. The department shall provide brochures and other printed materials, 26 written in easily understandable English and in the Alaska Native languages that are 27 spoken by a significant number of Alaska Natives, for distribution by the loan 28 information officers. The brochures and printed materials must explain the purposes 29 of the various state loan programs, the minimum qualifications under the programs, the 30 method for obtaining assistance in the completion of applications for the programs, and 31 other information the department determines will improve the access of persons in

01 rural areas to the state's loan programs. 02  (d) The department shall coordinate its efforts under this section with local 03 financial institutions and community groups to determine the proper itinerary and travel 04 schedule of the loan information officers and to provide adequate notice to persons in 05 rural areas of the itinerary and travel schedule of the loan information officers. 06  (e) The department shall assign the loan information officers to rural areas 07 based on the current and potential future demands for loans in those areas and shall 08 establish offices for the loan information officers in rural areas if the department 09 determines it is necessary to provide familiarity with the area served by the loan 10 information officers and to reduce travel costs. 11  Sec. 44.33.765. Rural development initiative fund. (a) The rural 12 development initiative fund is created in the department. Unless provided otherwise 13 in the appropriation act, an appropriation to the fund is retained in the fund for use 14 under AS 44.33.765 - 44.33.775 and does not lapse at the end of a fiscal year. Each 15 year the commissioner shall request an appropriation to the fund of interest and other 16 income earned on loans or investments of the fund. Money in the fund may be 17 appropriated for costs of administering AS 44.33.765 - 44.33.775. 18  (b) The commissioner may place money from the fund into a special reserve 19 account as necessary. The commissioner may use money in the account to protect the 20 state's security interest in collateral on loans made from the fund, to protect the state's 21 interests in investments made from the fund, or to defray expenses incurred during 22 foreclosure or other legal proceedings involving loans or investments made from the 23 fund. 24  (c) The commissioner may use money from the fund to provide for loan 25 information officers under AS 44.33.760. 26  Sec. 44.33.770. Rural development loans. (a) The department may use 27 money from the rural development initiative fund to make a loan of up to $100,000 28 to a person, or a loan of up to $200,000 to two or more persons, to be used for 29 working capital, equipment, construction, or other commercial purposes by a business 30 located in a community with a population of 5,000 or less. A person who has received 31 a loan under this subsection may not be granted another loan until after the original

01 loan is entirely repaid. 02  (b) The department shall require collateral for each loan made under this 03 section and shall require that a reasonable amount of money from other nonstate 04 sources be committed for use on any project or enterprise for which money from a 05 loan will be used. The department by regulation may establish other conditions for 06 loans. The department shall by regulation establish rates of interest that are not less 07 than six percent a year and terms of repayment for loans made under this section. 08  Sec. 44.33.775. Disposal of property acquired by default or foreclosure. 09 The department shall dispose of property acquired through default or foreclosure of a 10 loan made from the rural development initiative fund. Disposal shall be made in a 11 manner that serves the best interests of the state, and may include the amortization of 12 payments over a period of years. The commissioner shall request an appropriation to 13 the fund of proceeds from disposal of property under this section. 14  Sec. 44.33.780. Definitions. In AS 44.33.740 - 44.33.780, 15  (1) "commissioner" means the commissioner of community and 16 economic development; 17  (2) "department" means the Department of Community and Economic 18 Development. 19 Article 7B. Planning Assistance. 20  Sec. 44.33.781. Planning assistance for development and maintenance of 21 district coastal management programs. (a) The department shall conduct a program 22 of research, training, and technical assistance to coastal resource districts necessary for 23 the development and implementation of district coastal management programs under 24 AS 46.40. The technical assistance shall include the direct granting to the coastal 25 resource districts of a portion of any funds received by the state from the federal 26 coastal zone management program, in amounts to be individually determined for each 27 coastal resource district by the commissioner of community and economic 28 development. State agencies shall assist the department in carrying out the purposes 29 of this section. 30  Sec. 44.33.782. Planning assistance to platting authorities. To facilitate 31 planning in municipalities that exercise planning and zoning authority, the department

01 may provide planning assistance, including but not limited to surveys, land use studies, 02 urban renewal plans, technical services, model acts that include regulations designed 03 to encourage development and use of energy systems not dependent on oil or gas, and 04 other planning work to a city, borough, or other platting authority. In an area under 05 the jurisdiction, for planning purposes, of a city, borough, or other platting authority, 06 the department may not perform the planning work except at the request or with the 07 consent of the local authority. 08  Sec. 44.33.784. Assistance by cities and platting authorities. A city or 09 platting authority may make funds under its control available to the department for the 10 purposes of obtaining planning work or planning assistance, or both, for its area. The 11 department may contract for, accept, and expend the funds for urban planning for the 12 local jurisdiction. 13  Sec. 44.33.786. Land use planning and state facility procurement plan. 14 The department shall make recommendations to the Department of Transportation and 15 Public Facilities and to appropriate program agencies concerning the effect upon the 16 comprehensive plan or other land use plans or proposals of municipalities and 17 unincorporated communities with respect to the facility procurement plan required to 18 be prepared in accordance with AS 35.10.170. 19  Sec. 44.33.788. Other planning powers. The department may accept and 20 expend grants from the federal government and other public or private sources, may 21 contract with reference to them, and may enter into contracts and exercise all other 22 powers necessary to carry out AS 44.33.781 - 44.33.788. 23  Sec. 44.33.790. Definition. In AS 44.33.782 - 44.33.790, "department" means 24 the Department of Community and Economic Development. 25 * Sec. 63. AS 44.33 is amended by adding new sections to read: 26 Article 8A. Local Boundary Commission. 27  Sec. 44.33.810. Local Boundary Commission. There is in the Department 28 of Community and Economic Development a Local Boundary Commission. The Local 29 Boundary Commission consists of five members appointed by the governor for 30 overlapping five-year terms. One member shall be appointed from each of the four 31 judicial districts described in AS 22.10.010 and one member shall be appointed from

01 the state at large. The member appointed from the state at large is the chair of the 02 commission. 03  Sec. 44.33.812. Powers and duties. (a) The Local Boundary Commission 04 shall 05  (1) make studies of local government boundary problems; 06  (2) adopt regulations providing standards and procedures for municipal 07 incorporation, annexation, detachment, merger, consolidation, reclassification, and 08 dissolution; 09  (3) consider a local government boundary change requested of it by the 10 legislature, the commissioner of community and economic development, or a political 11 subdivision of the state; and 12  (4) develop standards and procedures for the extension of services and 13 ordinances of incorporated cities into contiguous areas for limited purposes upon 14 majority approval of the voters of the contiguous area to be annexed and prepare 15 transition schedules and prorated tax mill levies as well as standards for participation 16 by voters of these contiguous areas in the affairs of the incorporated cities furnishing 17 services. 18  (b) The Local Boundary Commission may 19  (1) conduct meetings and hearings to consider local government 20 boundary changes and other matters related to local government boundary changes, 21 including extensions of services by incorporated cities into contiguous areas and 22 matters related to extension of services; and 23  (2) present to the legislature during the first 10 days of a regular 24 session proposed local government boundary changes, including gradual extension of 25 services of incorporated cities into contiguous areas upon a majority approval of the 26 voters of the contiguous area to be annexed and transition schedules providing for total 27 assimilation of the contiguous area and its full participation in the affairs of the 28 incorporated city within a period not to exceed five years. 29  Sec. 44.33.814. Meetings and hearings. The chair of the commission or the 30 commissioner of community and economic development with the consent of the chair 31 may call a meeting or hearing of the Local Boundary Commission. All meetings and

01 hearings shall be public. 02  Sec. 44.33.816. Minutes and records. The Local Boundary Commission shall 03 keep minutes of all meetings and hearings. If the proceedings are transcribed, minutes 04 shall be made from the transcription. The minutes are a public record. All votes taken 05 by the commission shall be entered in the minutes. 06  Sec. 44.33.818. Notice of public hearings. Public notice of a hearing of the 07 Local Boundary Commission shall be given in the area in which the hearing is to be 08 held at least 15 days before the date of the hearing. The notice of the hearing must 09 include the time, date, place, and subject of the hearing. The commissioner of 10 community and economic development shall give notice of the hearing at least three 11 times in the press, through other news media, or by posting in a public place, 12 whichever is most feasible. 13  Sec. 44.33.820. Quorum. Three members of the commission constitute a 14 quorum for the conduct of business at a meeting. Two members constitute a quorum 15 for the conduct of business at a hearing. 16  Sec. 44.33.822. Boundary change. A majority of the membership of the 17 Local Boundary Commission must vote in favor of a proposed boundary change before 18 it may be presented to the legislature. 19  Sec. 44.33.824. Expenses. Members of the Local Boundary Commission 20 receive no pay but are entitled to the travel expenses and per diem authorized for 21 members of boards and commissions under AS 39.20.180. 22  Sec. 44.33.826. Hearings on boundary changes. A local government 23 boundary change may not be proposed to the legislature unless a hearing on the change 24 has been held in or in the near vicinity of the area affected by the change. 25  Sec. 44.33.828. When boundary change takes effect. When a local 26 government boundary change is proposed to the legislature during the first 10 days of 27 any regular session, the change becomes effective 45 days after presentation or at the 28 end of the session, whichever is earlier, unless disapproved by a resolution concurred 29 in by a majority of the members of each house. 30 Article 8B. Borough Feasibility Studies. 31  Sec. 44.33.840. Borough feasibility studies. The commissioner may contract

01 for studies of the feasibility of establishing boroughs in the unorganized borough. A 02 study may be conducted under this section only if 03  (1) appropriations are available for that purpose; and 04  (2) the study is requested by a person residing in the area to be studied 05 or by a city located in the area to be studied. 06  Sec. 44.33.842. Requests for studies. A request for a study of the feasibility 07 of establishing a borough in the unorganized borough shall be submitted to the 08 commissioner in writing and must include 09  (1) a description of the boundaries of the area of the proposed study; 10 and 11  (2) an indication of local interest in the proposed study consisting of 12 either 13  (A) a petition requesting the study containing the signatures and 14 addresses of five percent of the voters residing in the area of the proposed 15 study based on the number of voters who voted in the area in the last statewide 16 election; or 17  (B) resolutions requesting the study adopted by the governing 18 bodies of at least five percent of the cities within the area of the proposed 19 study. 20  Sec. 44.33.844. Boundaries. The boundaries of an area studied shall conform 21 to the boundaries indicated in the request for the study under AS 44.33.842 unless the 22 commissioner, after a public hearing held in the area of the proposed study, determines 23 that the boundaries should be altered. In determining the boundaries of an area to be 24 studied, the commissioner shall consider 25  (1) the standards applicable to the incorporation of boroughs under 26 AS 29.05.031; 27  (2) boundaries of regional corporations established under 43 U.S.C. 28 1606; 29  (3) census divisions of the state used for the 1980 census; 30  (4) boundaries of the regional educational attendance areas established 31 under AS 14.08.031; and

01  (5) boundaries of coastal resource service areas organized under 02 AS 46.40.110 - 46.40.210. 03  Sec. 44.33.846. Contracts. (a) The commissioner shall contract for a study 04 of the feasibility of establishing a borough in the unorganized borough by following 05 the procedures under AS 36.30 (State Procurement Code). The commissioner shall 06 include terms in the contract that provide for 07  (1) public participation in the preparation of the study; 08  (2) completion of the study not later than June 30 of the third year after 09 the year the contract is executed. 10  (b) A study under this section must include 11  (1) a recommendation for or against incorporation of a borough 12 containing all or part of the area studied; 13  (2) an evaluation of the economic development potential of the area 14 studied; 15  (3) an evaluation of capital facility needs of the area studied; 16  (4) an evaluation of demographic, social, and environmental factors 17 affecting the area studied; 18  (5) an evaluation of the relationships among regional educational 19 attendance areas, coastal resource service areas, and other regional entities responsible 20 for providing services in the area studied; 21  (6) an evaluation of the relationships between the existing cities within 22 the area studied and regional entities responsible for providing services in the area; and 23  (7) specific recommendations for 24  (A) organization of a home rule or general law borough 25 government if one is recommended; 26  (B) changes in organization of cities in the area studied; or 27  (C) the improvement of the delivery of services to the public 28 by the state in the area studied. 29  Sec. 44.33.849. Definition. In AS 44.33.840 - 44.33.849, "commissioner" 30 means the commissioner of community and economic development. 31 Article 8C. Alaska Regional Economic Assistance Program.

01  Sec. 44.33.895. Alaska regional economic assistance program. (a) The 02 department shall 03  (1) encourage the formation of regional development organizations by 04 providing assistance in forming organizations to interested individuals, including 05 information on how to qualify and apply for regional development grants and federal 06 funding under 42 U.S.C. 3121 - 3246 (Public Works and Economic Development Act 07 of 1965), as amended; 08  (2) assist an interested individual in establishing boundaries for a 09 proposed organization to ensure that the region 10  (A) is of sufficient geographic size and contains a large enough 11 population to form an economically viable unit with shared interests, resources, 12 traditions, and goals; 13  (B) contains at least one municipality that serves as a regional 14 center; and 15  (C) contains the entire area of each municipality included in the 16 region; 17  (3) gather information about regional economic issues, international 18 trade, and tourism from organizations; 19  (4) serve as liaison between organizations and other state agencies and 20 encourage other agencies to make resources available to help accomplish goals of the 21 organizations; 22  (5) assist each organization to 23  (A) provide services designed to encourage economic 24 development to local communities and businesses; 25  (B) collect and distribute economic information relevant to the 26 region; 27  (C) participate in state marketing campaigns and join state trade 28 missions that are relevant to the region; and 29  (D) develop and implement strategies to attract new industry, 30 expand international trade opportunities, and encourage tourism within the 31 region.

01  (b) Subject to (c) of this section, the department may make regional 02 development grants to organizations for projects the department determines will be of 03 value in encouraging economic development. During a fiscal year, the department may 04 make no more than 15 grants and may only make grants to one organization from a 05 particular region. An organization that is designated an economic development district 06 under 42 U.S.C. 3171 qualifies for grants under this subsection. The department shall 07 by regulation adopt procedures for applying for regional development grants, including 08 application deadlines. The department may by regulation establish additional grant 09 eligibility requirements. 10  (c) To qualify for a grant, a regional development organization must match the 11 grant by providing an amount of money from nonstate sources. The department shall 12 establish by regulation a formula that determines the amount of the match required 13 under this subsection based on the capability of each organization to generate money 14 from nonstate sources. The amount of match required may not exceed the amount of 15 grant money and may not be less than 20 percent of the grant. The total amount of 16 grant money provided to an organization during a fiscal year may not exceed 17 $100,000. 18  (d) There is established in the department the regional development fund 19 consisting of appropriations to the fund. Money from the fund may be used only for 20 regional development grants. 21  (e) In this section, 22  (1) "department" means the Department of Community and Economic 23 Development; 24  (2) "regional development organization" or "organization" means a 25 nonprofit organization or nonprofit corporation formed to encourage economic 26 development within a particular region of the state that includes the entire area of each 27 municipality within that region and that has a board of directors that represents the 28 region's economic, political, and social interests. 29 * Sec. 64. AS 44.62.330(a)(24) is amended to read: 30  (24) Department of Health and Social Services and Department of 31 Education and Child Development , relating to denial, involuntary conditioning, or

01 revocation of a license issued under AS 14.37 or AS 47.35, or suspension of operations 02 or admissions or assessment of an administrative fine under AS 14.37 or AS 47.35; 03 * Sec. 65. AS 46.03.900(33) is amended to read: 04  (33) "village" means a place within the unorganized borough or within 05 a borough as to a power, function, or service that is not exercised or provided by the 06 borough on an areawide or nonareawide basis that 07  (A) has irrevocably waived, in a form approved by the 08 Department of Law, any claim of sovereign immunity that might arise under 09 this chapter; and 10  (B) has 11  (i) a council organized under 25 U.S.C. 476 (sec. 16 of 12 the Indian Reorganization Act); 13  (ii) a traditional village council recognized by the United 14 States as eligible for federal aid to Indians; or 15  (iii) a council recognized by the commissioner of 16 community and economic development [REGIONAL AFFAIRS] under 17 regulations adopted by the Department of Community and Economic 18 Development [REGIONAL AFFAIRS] to determine and give official 19 recognition of village entities under AS 44.33.755(b) [AS 44.47.150(b)]; 20 * Sec. 66. AS 46.04.900(22) is amended to read: 21  (22) "village" means a place within the unorganized borough or within 22 a borough as to a power, function, or service that is not exercised or provided by the 23 borough on an areawide or nonareawide basis that 24  (A) has irrevocably waived, in a form approved by the 25 Department of Law, any claim of sovereign immunity that might arise under 26 this chapter; and 27  (B) has 28  (i) a council organized under 25 U.S.C. 476 (sec. 16 of 29 the Indian Reorganization Act); 30  (ii) a traditional village council recognized by the United 31 States as eligible for federal aid to Indians; or

01  (iii) a council recognized by the commissioner of 02 community and economic development [REGIONAL AFFAIRS] under 03 regulations adopted by the Department of Community and Economic 04 Development [REGIONAL AFFAIRS] to determine and give official 05 recognition of village entities under AS 44.33.755(b) [AS 44.47.150(b)]; 06 * Sec. 67. AS 46.08.900(16) is amended to read: 07  (16) "village" means a place within the unorganized borough or within 08 a borough if the power, function, or service for which a grant application under 09 AS 29.60.510 is submitted is not exercised or provided by the borough on an areawide 10 or nonareawide basis at the time the grant application is submitted that 11  (A) has irrevocably waived, in a form approved by the 12 Department of Law, any claim of sovereign immunity that might arise in 13 connection with the use of grant money under this chapter; and 14  (B) has 15  (i) a council organized under 25 U.S.C. 476 (sec. 16 of 16 the Indian Reorganization Act); 17  (ii) a traditional village council recognized by the United 18 States as eligible for federal aid to Indians; or 19  (iii) a council recognized by the commissioner of 20 community and economic development [REGIONAL AFFAIRS] under 21 regulations adopted by the Department of Community and Economic 22 Development [REGIONAL AFFAIRS] to determine and give official 23 recognition of village entities under AS 44.33.755(b) [AS 44.47.150(b)]. 24 * Sec. 68. AS 46.40.170(b) is amended to read: 25  (b) At the request of the council, the Department of Community and Economic 26 Development [REGIONAL AFFAIRS] shall complete the district coastal management 27 program in accordance with this chapter and the guidelines and standards adopted by 28 the council for a coastal resource service area that [WHICH] has been organized but 29 that [WHICH] has failed to make substantial progress in the preparation of an 30 approvable district coastal management program within 18 months of certification of 31 the results of an organization election or that [WHICH] has not submitted for approval

01 to the council a program within 30 months of certification of the results of its 02 organization election. Preparation of the program shall be conducted in consultation 03 with the coastal resource service area and shall, to the maximum extent consistent with 04 this chapter, reflect the expressed concerns of the residents of the service area. 05 * Sec. 69. AS 46.40.190(a) is amended to read: 06  (a) A city within the coastal area that [WHICH] is not part of a coastal 07 resource service area shall be included for purposes of this chapter within an adjacent 08 coastal resource service area unless its governing body, by resolution adopted by a 09 majority of its membership, chooses to exclude the city from an adjacent coastal 10 resource service area and a copy of the resolution is filed with the commissioner of 11 community and economic development [REGIONAL AFFAIRS]. 12 * Sec. 70. AS 46.40.210(2) is amended to read: 13  (2) "coastal resource district" means each of the following that 14 [WHICH] contains a portion of the coastal area of the state: 15  (A) unified municipalities; 16  (B) organized boroughs of any class that [WHICH] exercise 17 planning and zoning authority; 18  (C) home rule and first class cities of the unorganized borough 19 or within boroughs that [WHICH] do not exercise planning and zoning 20 authority; 21  (D) second class cities of the unorganized borough, or within 22 boroughs that [WHICH] do not exercise planning and zoning authority, that 23 [WHICH] have established a planning commission, and that [WHICH], in the 24 opinion of the commissioner of community and economic development 25 [REGIONAL AFFAIRS], have the capability of preparing and implementing 26 a comprehensive district coastal management program under AS 46.40.030; 27  (E) coastal resource service areas established and organized 28 under AS 29.03.020 and AS 46.40.110 - 46.40.180; 29 * Sec. 71. AS 47.05.030(a) is amended to read: 30  (a) Except as provided in (b) of this section and for purposes directly 31 connected with the administration of general assistance, adult public assistance, the day

01 care assistance program authorized under AS 14.38.100 - 14.38.199 [AS 44.47.250 - 02 44.47.310], or the Alaska temporary assistance program, and in accordance with the 03 regulations of the department, a person may not solicit, disclose, receive, make use of, 04 or authorize, knowingly permit, participate in, or acquiesce in the use of, a list of or 05 names of, or information concerning, persons applying for or receiving the assistance 06 directly or indirectly derived from the records, papers, files, or communications of the 07 department or subdivisions or agencies of the department, or acquired in the course of 08 the performance of official duties. 09 * Sec. 72. AS 47.27.060 is amended to read: 10  Sec. 47.27.060. Job development. The department may establish cooperative 11 agreements with the Department of Labor and Workforce Development , 12 [DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS,] Department of 13 Education and Child Development , and Department of Community [COMMERCE] 14 and Economic Development, and with other public or private sector organizations for 15 the purpose of developing job, training, and educational opportunities for families 16 eligible for assistance under this chapter. 17 * Sec. 73. AS 47.27.900(2) is amended to read: 18  (2) "child care assistance" means payments made by the Department 19 of Health and Social Services or the department of Education and Child 20 Development [COMMUNITY AND REGIONAL AFFAIRS] to Alaska temporary 21 assistance program participant families or to providers for the care of children of the 22 participant families; 23 * Sec. 74. AS 47.35.005(a) is amended to read: 24  (a) The purpose of this chapter is to establish and maintain standard levels for 25 services offered to children in [CHILD CARE FACILITIES,] foster homes [,] and 26 residential child care facilities; services offered by child placement agencies; and 27 services offered to pregnant individuals in maternity homes. [THE LEGISLATURE 28 RECOGNIZES THE RESPONSIBILITY OF PARENTS TO SELECT AND 29 MONITOR CAREGIVERS FOR THEIR CHILDREN IN ORDER TO ENSURE A 30 REASONABLY SAFE AND DEVELOPMENTALLY APPROPRIATE CHILD CARE 31 ENVIRONMENT.] The community care licensing procedures in this chapter are

01 intended to reduce predictable risk of harm to children and to provide support services 02 to those providing child care or services. 03 * Sec. 75. AS 47.35.010(a) is amended to read: 04  (a) The department may 05  (1) license and supervise foster homes, [CHILD CARE FACILITIES,] 06 residential child care facilities, semi-secure residential child care facilities, secure 07 residential psychiatric treatment centers, child placement agencies, and maternity 08 homes; 09  (2) investigate applicants, licensees, and persons that the department 10 reasonably believes are operating a facility without a license in violation of this 11 chapter; 12  (3) adopt regulations to implement the provisions of this chapter, 13 including regulations establishing licensure and renewal procedures, standards, and 14 fees; establishing requirements for operation of facilities or agencies licensed under this 15 chapter; and distinguishing between types of [CHILD CARE] facilities; 16  (4) enter into agreements with private entities, municipalities, or 17 individuals to investigate and make recommendations to the department for the 18 licensing and supervision of foster homes, [CHILD CARE FACILITIES,] residential 19 child care facilities, semi-secure residential child care facilities, secure residential 20 psychiatric treatment centers, child placement agencies, and maternity homes under 21 procedures and standards of operation established by the department. 22 * Sec. 76. AS 47.35.017(a) is amended to read: 23  (a) Application for a license to operate a foster home, [CHILD CARE 24 FACILITY,] residential child care facility, semi-secure residential child care facility, 25 secure residential psychiatric treatment center, child placement agency, or maternity 26 home shall be made to the department on a form provided by the department and shall 27 be accompanied by any applicable fees established by the department under 28 AS 47.35.010(a)(3). 29 * Sec. 77. AS 47.35.900(10) is amended to read: 30  (10) "facility" means the administration, program, and physical plant 31 of a foster home, [CHILD CARE FACILITY,] residential child care facility, or

01 maternity home; 02 * Sec. 78. AS 47.90.040 is amended to read: 03  Sec. 47.90.040. Consultation and coordination. The commissioner shall 04 consult and cooperate with the Department of Health and Social Services; the 05 Department of Education and Child Development; [, INCLUDING] the director of 06 the division of vocational rehabilitation; the University of Alaska, community colleges , 07 and other colleges as appropriate; [THE DEPARTMENT OF LABOR, INCLUDING 08 THE DIVISION OF EMPLOYMENT SECURITY;] and other persons or agencies that 09 the commissioner considers appropriate in the implementation of this chapter. 10 * Sec. 79. AS 47.90.070(1) is amended to read: 11  (1) "commissioner" means the commissioner of labor and workforce 12 development [COMMUNITY AND REGIONAL AFFAIRS]; 13 * Sec. 80. REPEALER. AS 23.15.210(4), 23.15.611, 23.15.614; AS 23.20.130(d)(3); 14 AS 39.25.120(c)(21); AS 42.45.020(b)(1), 42.45.030; AS 44.17.005(17); AS 44.29.020(a)(14); 15 AS 44.33.120(a); AS 44.47.010, 44.47.020, 44.47.050, 44.47.051, 44.47.055, 44.47.080, 16 44.47.090, 44.47.092, 44.47.095, 44.47.100, 44.47.130, 44.47.140, 44.47.145, 44.47.150, 17 44.47.155, 44.47.250, 44.47.260, 44.47.270, 44.47.280, 44.47.290, 44.47.300, 44.47.305, 18 44.47.310, 44.47.565, 44.47.567, 44.47.569, 44.47.571, 44.47.573, 44.47.575, 44.47.577, 19 44.47.579, 44.47.581, 44.47.583, 44.47.700, 44.47.710, 44.47.720, 44.47.730, 44.47.750, 20 44.47.752, 44.47.754, 44.47.756, 44.47.758, 44.47.760, 44.47.762, 44.47.764, 44.47.766, 21 44.47.768, 44.47.770, 44.47.772, 44.47.800, 44.47.810, 44.47.820, 44.47.900, 44.47.980, 22 44.47.998; and AS 45.90.020(b) are repealed. 23 * Sec. 81. REPEALER. AS 44.19.620, 44.19.621, 44.19.622, 44.19.623, 44.19.624, 24 44.19.625, 44.19.626, 44.19.627; AS 44.33.895, added by sec. 63 of this Act; and 25 AS 47.35.010(b), 47.35.015(a), 47.35.043(b), 47.35.900(4), 47.35.900(5) are repealed July 1, 26 2000. 27 * Sec. 82. TRANSITIONAL PROVISIONS. (a) Litigation, hearings, investigations, and 28 other proceedings pending under a law repealed or amended by this Act, or in connection with 29 functions transferred by this Act, continue in effect and may be completed notwithstanding 30 a transfer or repeal provided for in this Act. 31 (b) Certificates, orders, and regulations in effect immediately before the effective date

01 of a law affected by this Act that were issued or adopted under authority of a law amended 02 or repealed by this Act remain in effect for the term issued and shall be enforced by the 03 agency to which the function is transferred under this Act until revoked, vacated, or amended 04 by the agency to which the function is transferred. 05 (c) Wherever in Alaska Statutes affected by this Act there is a reference to regulations 06 adopted under a section of law and there are no regulations adopted under that section because 07 previous regulations adopted under another section are being enforced under (b) of this 08 section, the reference shall be construed to refer to the previously adopted regulations until 09 they are amended by the new agency. 10 (d) Contracts, rights, liabilities, and obligations created by or under a law repealed or 11 amended by this Act, and in effect on the day before the effective date of the repeal or 12 amendment, remain in effect notwithstanding this Act's taking effect. 13 (e) Records, equipment, appropriations, and other property of an agency of the state 14 whose functions are transferred under this Act shall be transferred to implement the provisions 15 of this Act. 16 * Sec. 83. REGULATIONS. A department affected by this Act may proceed to adopt 17 regulations to implement this Act. The regulations take effect under AS 44.62 (Administrative 18 Procedure Act) but not before the effective date of the corresponding enabling statute. 19 * Sec. 84. REVISOR'S INSTRUCTION REGARDING DEPARTMENT OF COMMERCE 20 AND ECONOMIC DEVELOPMENT. Wherever in the Alaska Statutes and the Alaska 21 Administrative Code the terms "Department of Commerce and Economic Development" and 22 "commissioner of commerce and economic development" are used, they shall be read, 23 respectively, as "Department of Community and Economic Development" and "commissioner 24 of community and economic development" when to do so would be consistent with the 25 changes made by this Act. 26 * Sec. 85. REVISOR'S INSTRUCTION REGARDING DEPARTMENT OF EDUCATION. 27 Wherever in the Alaska Statutes and the Alaska Administrative Code the terms "Department 28 of Education" and "commissioner of education" are used, they shall be read, respectively, as 29 "Department of Education and Child Development" and "commissioner of education and child 30 development" when to do so would be consistent with the changes made by this Act. 31 * Sec. 86. REVISOR'S INSTRUCTION REGARDING DEPARTMENT OF LABOR.

01 Wherever in the Alaska Statutes and the Alaska Administrative Code the terms "Department 02 of Labor" and "commissioner of labor" are used, they shall be read, respectively, as 03 "Department of Labor and Workforce Development" and "commissioner of labor and 04 workforce development" when to do so would be consistent with the changes made by this 05 Act. 06 * Sec. 87. SPECIFIC INSTRUCTIONS TO REVISOR OF STATUTES CONCERNING 07 SPECIFIC REFERENCES. The revisor of statutes shall change references to "community and 08 regional affairs" to read "community and economic development" in the following statutes: 09 (1) AS 08.40.190(b)(2)(A), 08.40.390(b)(2)(A); 10 (2) AS 14.08.031(a), 14.08.051(a); AS 14.17.410(b)(2), 14.17.410(c)(1), 11 14.17.410(e)(1)(B), 14.17.490(b), 14.17.510(a); 12 (3) AS 15.07.055(a)(3); AS 15.13.010(a)(2); 13 (4) AS 18.26.030(a)(3); AS 18.56.030(a)(2), 18.56.097; 14 (5) AS 19.30.131(a), 19.30.131(b), 19.30.131(c); 15 (6) AS 26.23.071(b); 16 (7) AS 28.01.010(b); 17 (8) AS 29.60.120(d), 29.60.370(a), 29.60.620(b), 29.60.650(2); 18 AS 29.65.050(c), 29.65.050(d), 29.65.120; AS 29.71.800(5), 29.71.800(8); 19 (9) AS 37.05.317, 37.05.530(c); AS 37.06.010(g), 37.06.020(l), 37.06.030(c); 20 (10) AS 41.15.180(a), 41.15.180(b), 41.15.180(f), 41.15.180(g); 21 (11) AS 42.45.060(c), 42.45.990(1); 22 (12) AS 43.75.137; AS 43.77.040(b), 43.77.060(d); 23 (13) AS 44.21.200(a)(2); AS 44.85.030, 44.85.320(b); 24 (14) AS 46.08.040(a); 46.40.120(b), 46.40.120(d), 46.40.140(c), 46.40.170(a), 25 46.40.180(a), 46.40.180(d), 46.40.210(5); 26 (15) AS 47.18.010(c); AS 47.80.090(8). 27 * Sec. 88. INSTRUCTIONS CONCERNING AS 25.27.244. Notwithstanding sec. 54, 28 ch. 132, SLA 1998, the amendment made to AS 25.27.244(s)(2) by sec. 29 of this Act shall 29 remain in effect on and after July 1, 2001, unless that amendment is repealed or amended by 30 a law enacted after the effective date of this bill section. 31 * Sec. 89. LOAN COMMITTEE UNDER AS 42.45.060. Notwithstanding

01 AS 42.45.060(a), as amended by sec. 48 of this Act, all public members on the loan 02 committee established under AS 42.45.060 whose terms have not expired by July 1, 1999, 03 may retain their positions on the committee until their terms expire. 04 * Sec. 90. IMPLEMENTATION OF SECTIONS 84 - 88 OF THIS ACT. Under 05 AS 01.05.031, the revisor of statutes shall implement secs. 84 - 88 in the statutes and, under 06 AS 44.62.125(b)(6), the regulations attorney shall implement secs. 84 - 88 in the 07 administrative code. 08 * Sec. 91. Except as provided in secs. 92 and 93 of this Act, this Act takes effect July 1, 09 1999. 10 * Sec. 92. Section 83 of this Act takes effect immediately under AS 01.10.070(c). 11 * Sec. 93. The amendment made to AS 14.35.020(b)(5) by sec. 6 of this Act, the 12 amendment made to AS 14.42.015(a)(5) by sec. 12 of this Act, and secs. 3, 4, 7, 9 - 11, 13, 13 24, 26, 28, 29, 47, 64, and 88 of this Act take effect July 1, 2000.