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SCS CSHB 40(FIN) AM S: "An Act merging certain departments in the executive branch of state government; changing the names of certain departments in the executive branch of state government; transferring duties among departments and offices in the executive branch of state government; providing that certain discretionary duties formerly performed by the Department of Community and Regional Affairs are mandatory in the department to which those duties are transferred; relating to the licensing of child care facilities; relating to the division of vocational rehabilitation; relating to the Alaska Human Resource Investment Council; adjusting the membership of certain multi-member bodies; providing that a certain commissioner may designate department employees to serve in the commissioner's place on a board, council, or similar entity; providing for advice to be given by a department head to the governor and other commissioners on the delivery of government services to rural areas and providing for recommendations to be made to the governor and other commissioners by that same commissioner about policy changes that would affect rural governments and rural affairs; relating to the federal community development quota program; eliminating references to the division of tourism; eliminating a reference to manpower training programs; eliminating references to the director and deputy director of international trade; eliminating the requirement for a local advisory committee for consideration of rural electrification loans; and providing for an effective date."

00SENATE CS FOR CS FOR HOUSE BILL NO. 40(FIN) am S 01 "An Act merging certain departments in the executive branch of state 02 government; changing the names of certain departments in the executive branch 03 of state government; transferring duties among departments and offices in the 04 executive branch of state government; providing that certain discretionary duties 05 formerly performed by the Department of Community and Regional Affairs are 06 mandatory in the department to which those duties are transferred; relating to 07 the licensing of child care facilities; relating to the division of vocational 08 rehabilitation; relating to the Alaska Human Resource Investment Council; 09 adjusting the membership of certain multi-member bodies; providing that a 10 certain commissioner may designate department employees to serve in the 11 commissioner's place on a board, council, or similar entity; providing for advice 12 to be given by a department head to the governor and other commissioners on 13 the delivery of government services to rural areas and providing for 14 recommendations to be made to the governor and other commissioners by that

01 same commissioner about policy changes that would affect rural governments and 02 rural affairs; relating to the federal community development quota program; 03 eliminating references to the division of tourism; eliminating a reference to 04 manpower training programs; eliminating references to the director and deputy 05 director of international trade; eliminating the requirement for a local advisory 06 committee for consideration of rural electrification loans; and providing for an 07 effective date." 08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 09 * Section 1. AS 09.25.110(e) is amended to read: 10  (e) Notwithstanding other provisions of this section to the contrary, the Bureau 11 of Vital Statistics and [,] the library archives in the Department of Education and 12 Early Development [, AND THE DIVISION OF BANKING, SECURITIES, AND 13 CORPORATIONS IN THE DEPARTMENT OF COMMERCE AND ECONOMIC 14 DEVELOPMENT] may continue to charge the same fees that they were [ARE] 15 charging on September 25, 1990 , for performing record searches, and may increase the 16 fees as necessary to recover agency expenses on the same basis that was [IS] used by 17 the agency immediately before September 25, 1990. Notwithstanding other 18 provisions of this section to the contrary, the division of banking, securities, and 19 corporations in the Department of Community and Economic Development may 20 continue to charge the same fees that the former Department of Commerce and 21 Economic Development was charging on the effective date of this bill section for 22 performing record searches and may increase the fees as necessary to recover 23 agency expenses on the same basis that was used by the former Department of 24 Commerce and Economic Development immediately before the effective date of 25 this bill section. 26 * Sec. 2. AS 09.65.170(c)(2) is amended to read: 27  (2) "regional development organization" has the meaning given in 28 AS 44.33.895 [AS 44.47.900]. 29 * Sec. 3. AS 11.61.195(a) is amended to read: 30  (a) A person commits the crime of misconduct involving weapons in the 31 second degree if the person knowingly

01  (1) possesses a firearm during the commission of an offense under 02 AS 11.71.010 - 11.71.040; 03  (2) violates AS 11.61.200(a)(1) and is within the grounds of or on a 04 parking lot immediately adjacent to 05  (A) a public or private preschool, elementary, junior high, or 06 secondary school without the permission of the chief administrative officer of 07 the school or district or the designee of the chief administrative officer; or 08  (B) a center, other than a private residence, licensed under 09 AS 14.37, AS 47.33 , or AS 47.35 or recognized by the federal government for 10 the care of children; or 11  (3) discharges a firearm at or in the direction of 12  (A) a building with reckless disregard for a risk of physical 13 injury to a person; or 14  (B) a dwelling. 15 * Sec. 4. AS 11.61.220(a) is amended to read: 16  (a) A person commits the crime of misconduct involving weapons in the fifth 17 degree if the person 18  (1) knowingly possesses a deadly weapon, other than an ordinary 19 pocket knife or a defensive weapon, that is concealed on the person; 20  (2) knowingly possesses a loaded firearm on the person in any place 21 where intoxicating liquor is sold for consumption on the premises; 22  (3) being an unemancipated minor under 16 years of age, possesses a 23 firearm without the consent of a parent or guardian of the minor; 24  (4) knowingly possesses a firearm 25  (A) within the grounds of or on a parking lot immediately 26 adjacent to a center, other than a private residence, licensed under AS 14.37, 27 AS 47.33 , or AS 47.35 or recognized by the federal government for the care 28 of children; or 29  (B) within a 30  (i) courtroom or office of the Alaska Court System; or 31  (ii) courthouse that is occupied only by the Alaska Court

01 System and other justice-related agencies; 02  (C) within a domestic violence or sexual assault shelter that 03 receives funding from the state; or 04  (5) possesses or transports a switchblade or a gravity knife. 05 * Sec. 5. AS 14.20.165 is amended to read: 06  Sec. 14.20.165. Restoration of tenure rights. A teacher who held tenure 07 rights and who was retired due to disability under AS 14.25.130, but whose disability 08 (1) has been removed, and the removal of that disability is certified by a competent 09 physician following a physical or mental examination, or (2) has been compensated for 10 by rehabilitation or other appropriate restorative education or training, and that 11 rehabilitation or restoration to health has been certified by the division of vocational 12 rehabilitation of the Department of Labor and Workforce Development 13 [DEPARTMENT], shall be restored to full tenure rights in the district from which the 14 teacher was retired, at such time as an opening for which the teacher is qualified 15 becomes available. 16 * Sec. 6. AS 14.35.020(b) is amended to read: 17  (b) When required by any of the Acts described in AS 14.35.010 , the board 18 shall 19  (1) prepare, submit, and supervise the administration of the plans for 20 vocational education [AND VOCATIONAL REHABILITATION]; 21  (2) select a state director of vocational education; 22  (3) establish the minimum qualifications for teachers, supervisors, or 23 directors; 24  (4) determine the prorated basis on which money shall be available for 25 the salary and necessary travel expenses of the state director of vocational education; 26  (5) consider the advice of the Alaska Human Resource Investment 27 Council established by AS 23.15.550 [AS 44.19.620] regarding employment training 28 needs and advise that council in the development of vocational education programs. 29 * Sec. 7. AS 14 is amended by adding a new chapter to read: 30 Chapter 37. Licensure of Child Care Facilities. 31  Sec. 14.37.005. Purpose; applicability. (a) The purpose of this chapter is

01 to establish and maintain standard levels for services offered to children in child care 02 facilities. The legislature recognizes the responsibility of parents to select and monitor 03 caregivers for their children in order to ensure a reasonably safe and developmentally 04 appropriate child care environment. The child care licensing procedures in this chapter 05 are intended to reduce predictable risk of harm to children and to provide support 06 services to those providing child care services. 07  (b) This chapter and regulations adopted under this chapter apply to facilities 08  (1) for which licensure is required by or under AS 14.37.015; or 09  (2) that are exempt under AS 14.37.015 from licensure but for which 10 a license is issued under AS 14.37.015(c). 11  Sec. 14.37.010. Powers of department. (a) The department may 12  (1) license and supervise child care facilities; 13  (2) investigate applicants, licensees, and persons that the department 14 reasonably believes are operating a facility without a license or certification in 15 violation of this chapter; 16  (3) adopt regulations to implement the provisions of this chapter, 17 including regulations establishing certification and licensure procedures, standards, and 18 fees; establishing requirements for operation of facilities licensed under this chapter; 19 and distinguishing between types of child care facilities; 20  (4) enter into agreements with private entities, municipalities, or 21 individuals to investigate and make recommendations to the department for the 22 licensing and supervision of child care facilities under procedures and standards of 23 operation established by the department. 24  (b) The department shall, within 90 days after receiving a written request that 25 it do so, delegate its powers relating to child care facilities under this chapter to a 26 municipality that has adopted an ordinance providing for child care licensing under 27 home rule powers under AS 29.10.010 or as authorized under AS 29.35.200 - 28 29.35.210. A municipality to which these powers have been delegated may adopt, by 29 ordinance, additional requirements for child care facilities operating within its 30 boundaries if the requirements meet or exceed the requirements adopted by the 31 department.

01  Sec. 14.37.015. License required; exemptions. (a) A person may not operate 02 a child care facility without a license issued under this chapter unless that facility is 03 exempt from licensure. The following facilities are exempt: 04  (1) a facility in which child care is regularly provided and each child's 05 parent is on the premises within reasonable proximity and accessibility to the child; 06  (2) a facility located on a United States Department of Defense or 07 United States Coast Guard installation that is located on federal property; 08  (3) a recreational program that children are allowed to attend and in 09 which the program assumes no responsibility for care of the children; 10  (4) a daytime therapeutic program of supervised, educational, and 11 rehabilitative services for children with special needs or behavioral problems; 12  (5) a program that is primarily educational and that 13  (A) is certified as a pre-elementary school under department 14 regulations adopted under AS 14.07.020; 15  (B) serves children three years of age or older and is exempt 16 from the department pre-elementary school regulations; or 17  (C) is operated as a headstart preschool that is required to meet 18 the standards established under 42 U.S.C. 9836a; 19  (6) a temporary facility providing care for less than five continuous 20 weeks; 21  (7) a facility regularly providing child care to four or fewer children 22 unrelated to the caregiver; 23  (8) a facility in which the caregiver is a relative of all of the children. 24  (b) In addition to facilities that, under this section, are exempt from licensure, 25 the department, by regulation, may provide for additional exemptions that the 26 department considers appropriate. 27  (c) A person may apply for a license for a facility that is exempt from 28 licensure under this section. The department may issue a license to an applicant under 29 this subsection if the applicant meets the requirements of this chapter and regulations 30 adopted under this chapter. 31  Sec. 14.37.017. Application for license. (a) Application for a license to

01 operate a child care facility must be made to the department on a form provided by 02 the department and must be accompanied by all applicable fees established by the 03 department under AS 14.37.010(a)(3). 04  (b) An application submitted under this section must contain at least the 05 following information: 06  (1) the name and address of the applicant and, if the applicant is a 07 corporation, partnership, association, or another form of organization, the name, 08 address, and title of each individual who has an ownership or management interest in 09 the facility; if the applicant is an individual, the application must include the name, 10 age, and driver's license number, if any, of each member of the individual's 11 household; 12  (2) the name, physical location, and mailing address of the facility for 13 which the license is sought; 14  (3) the name and address of the administrator of the facility, if any; 15  (4) evidence that the administrator is an adult with sufficient 16 experience, training, or education to fulfill the duties of an administrator; 17  (5) a release for the administrator and for each other person who is 16 18 years of age or older, as specified by the department by regulation, who will have 19 contact with individuals served by the facility authorizing the department to review all 20 federal, state, and municipal criminal justice information, whether of this state, of a 21 municipality of this state, or of another jurisdiction, medical records, licensing records, 22 and protective services records, identified in regulations adopted under this chapter, 23 that are relevant to the person who is the subject of the release; 24  (6) the number of individuals that will be served in the facility; 25  (7) the type of facility for which the license is sought; 26  (8) copies of all inspection reports and approvals required by state fire 27 prevention and environmental health and safety authorities for operation of the facility, 28 including any variances granted by these authorities; 29  (9) a plan of operation, as required by the department by regulation; 30  (10) a staffing plan that describes the number of people who will work 31 at the facility, staff qualifications, a description of each person's responsibilities, and

01 a supervision schedule for the children in care that meets the requirements established 02 by the department by regulation; 03  (11) evidence that the applicant has completed orientation or training 04 required by the department by regulation; and 05  (12) other information required by the department, by regulation, in 06 order to monitor compliance with this chapter and regulations adopted under this 07 chapter. 08  Sec. 14.37.020. Provisional license; biennial license. (a) The department 09 shall issue a provisional license to a new facility that applies under AS 14.37.017 if, 10 after inspection and investigation, the department determines that the application and 11 plan of operation for the facility meet the requirements of this chapter and regulations 12 adopted under this chapter. A provisional license is valid for a period not to exceed 13 one year. The department may extend a provisional license for one additional period 14 not to exceed one year. 15  (b) Before expiration of a provisional license issued under (a) of this section, 16 the department shall inspect and investigate the facility in order to determine whether 17 the facility is operating under the provisional license in compliance with this chapter 18 and applicable regulations. 19  (c) Before expiration of a provisional license, the department shall issue a 20 biennial license for the facility if (1) after inspection and investigation under (b) of this 21 section, the department finds that the facility is operating in compliance with and 22 meets the licensure requirements of this chapter and regulations adopted under this 23 chapter; (2) none of the grounds for revocation set out in AS 14.37.130(a)(2) exist; and 24 (3) all applicable fees have been paid. The department shall prepare a summary report 25 of its findings and recommendations for issuance of a biennial license. 26  (d) The issuance of a license by the department does not obligate the 27 department to support the facility financially. 28  Sec. 14.37.025. Denial of license; right to appeal. (a) If the department 29 denies an application for a license or decides not to issue a biennial license, the 30 department shall hand deliver to the prospective licensee, or mail to the prospective 31 licensee by certified mail, return receipt requested, a notice of denial of licensure. The

01 notice must contain a summary of the department's reasons for denial of the license 02 and a form for requesting a hearing under (b) of this section. 03  (b) A prospective licensee who was denied licensure may appeal the 04 department's decision by requesting a hearing, on the form provided by the 05 department, within 15 days after receipt of the notice of denial of licensure. 06  Sec. 14.37.027. Variances. (a) The department may grant to an applicant for 07 a license under this chapter, or to a licensee, a variance from a requirement of this 08 chapter or a regulation adopted under this chapter if that person submits to the 09 department, on a form provided by the department, a complete variance request as 10 required by this section. A variance may be granted if 11  (1) the applicant or licensee proposes an alternative means, acceptable 12 to the department, to satisfy the intent of the requirement for which the variance is 13 requested; and 14  (2) the health and safety of children is adequately protected. 15  (b) A request for a variance must contain the following information: 16  (1) the statute or regulation from which the variance is sought; 17  (2) the reasons why the variance is needed; 18  (3) the period of time for which the variance is requested; 19  (4) the proposed alternative means of satisfying the intent of the 20 requirement for which the variance is requested; 21  (5) a statement as to how the health and safety of children will be 22 protected during the period of the variance; and 23  (6) assurance that the conditions of the facility do not present an 24 imminent danger to the health or safety of individuals served by the facility. 25  (c) To evaluate a request for a variance, the department shall take one or more 26 of the following actions: 27  (1) investigate the statements in the request; 28  (2) inspect the facility; 29  (3) schedule a conference with the applicant or licensee regarding the 30 variance request. 31  (d) The department's decision approving or denying a variance must be in

01 writing, and the department shall provide a copy of the decision to the person 02 requesting the variance. If the department grants the variance, the decision must state 03 the term of and conditions of the variance. 04  (e) If an applicant or licensee violates a condition of a variance granted under 05 this section, the variance is terminated. 06  Sec. 14.37.029. Content of license; posting. (a) A license issued under this 07 chapter must state 08  (1) the period of time during which the license is in effect; 09  (2) the name of the facility; 10  (3) the type of facility; 11  (4) the name of the licensee; 12  (5) the location and mailing address of the facility; 13  (6) the number and age range of children that the facility may have in 14 care at any time; 15  (7) all conditions set by the department; 16  (8) variances approved by the department for the duration of the 17 license; and 18  (9) the address and phone number of the nearest department office that 19 is responsible for administering this chapter or of the department representative 20 responsible for evaluating that facility under AS 14.37.010(a)(4). 21  (b) A licensee shall post the license in a conspicuous place in the facility, 22 visible to individuals in care and their families and to facility staff. If the department 23 has approved a variance that is not stated on the license, the licensee shall post a copy 24 of the variance near the license. 25  Sec. 14.37.033. Licenses not transferable. A license may be issued under 26 this chapter only for the location and person named in the application. A license 27 issued under this chapter may not be transferred to another person or location. 28  Sec. 14.37.037. Orientation and training. The department, by regulation, 29 may require that an applicant or licensee complete orientation or training to assist that 30 person in operating under the license. 31  Sec. 14.37.039. Records required. (a) In accordance with regulations

01 adopted by the department, a licensee shall keep the records regarding each individual 02 in its care that are necessary to show compliance with this chapter and regulations 03 adopted under this chapter. 04  (b) The department's licensing records, with the names of all individuals in 05 care and parents of minors in care deleted to protect the confidentiality of those 06 individuals, are available for public inspection, except for 07  (1) material made confidential by state or federal statutes or regulations; 08  (2) material that is part of an uncompleted licensing or complaint 09 investigation; 10  (3) records that would deprive an applicant, licensee, or other person 11 of a fair and impartial hearing; and 12  (4) records for which the department determines that disclosure would 13 constitute an unwarranted invasion of personal privacy. 14  (c) A government agency that provides funding to a facility licensed under this 15 chapter may have access to that facility's records in order to conduct an audit. 16  Sec. 14.37.043. Monitoring; investigation. (a) By the first anniversary of 17 the effective date of a biennial license, including a renewed biennial license, the 18 licensee shall submit an annual self-monitoring report to the department. The 19 department shall specify, by regulation, the contents of the report. 20  (b) To encourage parents of children in child care facilities to become involved 21 in day-to-day monitoring of the care provided by the facilities, the department shall 22 require licensees to give to parents of children in child care in the licensee's facility 23 a summary of the regulatory requirements that apply to the facility and the 24 department's or department representative's telephone contact number for reporting a 25 concern regarding child care. The department also may provide notice of the 26 telephone contact numbers for reporting child care concerns. 27  (c) The department may conduct an investigation, including announced or 28 unannounced on-site inspections, for ongoing monitoring or to assist in its review of 29 an annual self-monitoring report. 30  Sec. 14.37.045. Biennial license renewal. (a) At least 90 days before the 31 expiration date of a biennial license, a licensee who wishes to remain licensed shall

01 submit, on a form provided by the department, an application for renewal of the 02 license and any associated variances. 03  (b) Before expiration of a biennial license, the department or its representative 04 shall inspect a facility that is the subject of a renewal application. 05  (c) The department shall renew a biennial license if the department finds that 06  (1) the licensee 07  (A) either is in compliance with this chapter and regulations 08 adopted under this chapter or is substantially in compliance and has 09 implemented a plan of correction, approved by the department, that is designed 10 to bring the facility into full compliance; and 11  (B) has maintained the facility in good repair and is in 12 compliance with all state fire safety and environmental health and safety code 13 requirements; 14  (2) the ground for revocation set out in AS 14.37.130(a)(2) does not 15 exist; and 16  (3) all applicable fees have been paid. 17  (d) If the licensee submits a renewal application within the time period 18 required by the department by regulation, but the department is unable to complete its 19 review before the expiration date of the biennial license, the license is automatically 20 extended for six months or until the department completes its review and either 21 approves or denies the application, whichever occurs first. 22  (e) If the department decides to approve an application for renewal, but finds 23 that the applicant is not in compliance with a provision of this chapter, a regulation 24 adopted under this chapter, or a condition on the license, the department, as a 25 condition on the renewed biennial license, shall require the applicant to correct any 26 violations and provide the department with verification of compliance. 27  (f) If the department denies an application for renewal, it shall provide the 28 applicant with a notice of denial of application. The notice must contain a written 29 statement of the reasons for denial and a form for requesting a hearing under (g) of 30 this section. 31  (g) An applicant whose application is denied may appeal the department's

01 decision, on the form provided by the department, by requesting a hearing within 15 02 days after receipt of the notice of denial of application. 03  Sec. 14.37.047. Notice of changes. (a) A licensee shall provide the 04 department with written notice of a change of mailing address at least 14 days before 05 the effective date of the change. 06  (b) A licensee shall notify the department within 24 hours after having 07 knowledge of a conviction or indictment, presentment, or charging by information or 08 complaint of an administrator, regular volunteer, staff person, or member of the 09 licensee's household for a violation of the following laws or the laws of another 10 jurisdiction with similar elements: 11  (1) offenses against the family and vulnerable adults under AS 11.51; 12  (2) perjury under AS 11.56.200; 13  (3) offenses included in the definition of "serious offense" under 14 AS 12.62.900. 15  (c) A licensee shall notify the department at least 20 days before the effective 16 date of a decision to relinquish the license. 17  (d) A licensee shall notify the department at least 20 days before the date on 18 which the licensee wishes to change the number of children in care or hours of 19 operation. 20  (e) A licensee shall notify the department no later than one day after signing 21 a contract for sale of the licensed facility. 22  (f) A licensee shall notify the department at least 30 days before the licensee 23 wishes to change the location of the facility. 24  Sec. 14.37.105. Complaints. (a) A person who believes that a provision of 25 this chapter, a regulation adopted under this chapter, or a condition of a license issued 26 under this chapter has been violated may file a verbal or written complaint with the 27 department. 28  (b) The department shall investigate all complaints filed under this section 29 unless the department reasonably concludes that the complaint is without merit. 30  (c) After an investigation under this section, the department shall prepare a 31 written report of investigation and shall mail a copy to the licensee or other person

01 who is the subject of the complaint, and to the complainant if requested. If the 02 department determines that a violation of this chapter, a regulation adopted under this 03 chapter, or a condition of a license issued under this chapter has occurred, the 04 department's report of investigation must contain the following: 05  (1) a description of the violation; 06  (2) a citation to the provision of this chapter or the regulation that has 07 been violated, if applicable; and 08  (3) either 09  (A) a date by which the violation must be corrected and a 10 verification of compliance submitted to the department; or 11  (B) a plan of correction. 12  (d) A licensee may submit to the department a written response regarding a 13 report of investigation relating to that facility. The department shall retain the written 14 response in the licensing file. 15  (e) A licensee may not take retaliatory action against a person who files a 16 complaint. A complainant against whom retaliatory action has been taken may recover 17 treble damages in a civil action upon a showing that the action was taken in retaliation 18 for the filing of a complaint. 19  Sec. 14.37.110. Investigations; search warrants. (a) An applicant for a 20 license, or a licensee, shall cooperate with the department for purposes of licensing 21 investigations, investigations relating to ongoing monitoring of the facility, or 22 investigations under AS 14.37.105 by 23  (1) permitting representatives of the department to inspect the facility, 24 review records, interview staff, and interview individuals in care; and 25  (2) providing to the department information and documentation 26 requested by the department to determine compliance with this chapter and regulations 27 adopted under this chapter. 28  (b) Following an investigation relating to ongoing monitoring of a facility or 29 relating to a facility that the department believes is operating without a license in 30 violation of this chapter, the department shall prepare and distribute a written report 31 of investigation as described in AS 14.37.105(c), and the facility may submit a

01 response as described in AS 14.37.105(d). 02  (c) The department may seek a search warrant to inspect a facility if 03  (1) the department has probable cause to believe that the facility is 04 operating without a license in violation of this chapter and the facility operator refuses 05 to allow an inspection by the department; or 06  (2) the licensee refuses to allow an inspection of the facility by the 07 department. 08  Sec. 14.37.120. Enforcement actions. (a) During an investigation under this 09 chapter, the department may, by written notice, suspend operations of the facility if the 10 department has reasonable cause to believe that a violation is occurring that presents 11 an imminent danger to the health or safety of the individuals in care. A suspension 12 under this subsection continues for the time period set by the department and may 13 continue until the department issues a report of investigation under AS 14.37.105(c) 14 or 14.37.110(b). 15  (b) If, after an investigation under this chapter, the department has determined 16 that a violation of this chapter or a regulation adopted under this chapter has occurred 17 or a ground for revocation or nonrenewal set out in AS 14.37.130 exists, has issued 18 a report of investigation under AS 14.37.105(c) or 14.37.110(b), and has determined 19 that voluntary compliance or a plan of correction is not appropriate, the department 20 may take one or more of the following enforcement actions as the department 21 considers appropriate: 22  (1) delivery of a warning notice to the licensee or other person who is 23 the subject of the investigation; 24  (2) modification of the term of an existing license or reduction of the 25 number of children for whom care can be provided; 26  (3) suspension of operations of the facility for a period of time set by 27 the department; 28  (4) suspension of new enrollment in the facility for a period of time set 29 by the department; 30  (5) nonrenewal of the license; 31  (6) revocation of the license;

01  (7) issuance of an order requiring immediate closure of the facility; 02  (8) assessment of an administrative fine of up to $500 for each day a 03 violation continues, not to exceed a total of $5,000 for a violation. 04  (c) The department shall provide the licensee or other person who is the 05 subject of an investigation with written notice of the department's decision under (b) 06 of this section to take enforcement action. The notice must contain a form for 07 requesting a hearing under (d) of this section and must describe 08  (1) the condition, if any, in the facility that constitutes a violation of 09 this chapter or a regulation adopted under this chapter; 10  (2) each enforcement action that will be taken; 11  (3) the licensee's or other person's right to appeal the department's 12 decision to take an enforcement action described in (b)(2) - (8) of this section. 13  (d) A licensee or other person to whom a notice has been provided under (a) 14 or (c) of this section may appeal the department's decision to impose an enforcement 15 action described in (a) or (b)(2) - (8) of this section by filing a written request for a 16 hearing, on the form provided by the department, within 15 days after receipt of the 17 notice of enforcement action. 18  (e) Unless the violation that prompted enforcement action under (b) of this 19 section presents an imminent danger to the health or safety of the individuals in care, 20 an enforcement action described in a notice provided under (c) of this section may not 21 be imposed until 22  (1) the time period for requesting a hearing under (d) of this section has 23 passed without a hearing being requested; or 24  (2) the department makes a final decision following a hearing requested 25 under (d) of this section. 26  (f) If a hearing is requested under (d) of this section, the department's decision 27 following the hearing is a final administrative order. 28  (g) If a hearing is not requested under (d) of this section, the department's 29 notice of enforcement action constitutes a final administrative order, which the 30 department may seek the court's assistance in enforcing. 31  (h) A licensee whose license was revoked or not renewed under this section

01 may not reapply for licensure under this chapter until after the time period, if any, set 02 by the department in its final administrative order. If a time period is not set by the 03 department, the revocation or nonrenewal is permanent, and the former licensee may 04 not again apply for licensure under this chapter. 05  (i) Assessment of an administrative fine under this section does not preclude 06 imposition of a criminal penalty under AS 14.37.820. 07  Sec. 14.37.130. Grounds for license revocation or nonrenewal. (a) In 08 addition to the ground of violation of this chapter or a regulation adopted under this 09 chapter, the department may revoke or decline to renew a license issued under this 10 chapter on one or more of the following grounds: 11  (1) failure to submit a timely and complete renewal application; 12  (2) the indictment or charging by information or complaint, or a 13 criminal conviction within the last 10 years, of the licensee or administrator, member 14 of the licensee's household who is present in the facility at any time the facility is in 15 operation, regular volunteer, or staff person for 16  (A) a felony; 17  (B) a misdemeanor crime of assault, reckless endangerment, 18 contributing to the delinquency of a minor, or misconduct involving a 19 controlled substance; or 20  (C) the crime of perjury, as defined in AS 11 or the laws of 21 another jurisdiction; 22  (3) the conviction, indictment, presentment, or charging of the licensee 23 or an administrator, member of the licensee's household who is present in the facility 24 at any time the facility is in operation, regular volunteer, or staff person at any time 25 for a violation or attempted violation of an offense included in the definitions of 26 "serious offense" under AS 12.62.900; 27  (4) obtaining or attempting to obtain or retain a license under this 28 chapter by fraudulent means, misrepresentation, or by submitting false information; 29  (5) failure to correct a violation noted in a report of investigation 30 provided under AS 14.37.105(c) or 14.37.110(b); 31  (6) failure to comply with a final administrative order issued by the

01 department under AS 14.37.120. 02  (b) A licensee may voluntarily relinquish the license or withdraw an 03 application for renewal. 04  Sec. 14.37.800. Administrative procedure. The administrative adjudication 05 provisions of AS 44.62 (Administrative Procedure Act) apply to an appeal from a 06 department decision under this chapter relating to denial, involuntary conditioning, or 07 revocation of a license, suspension of operations or admissions, or assessment of an 08 administrative fine. 09  Sec. 14.37.810. Immunity from liability. (a) A person operating under 10 agreement with the department under AS 14.37.010(a)(4) is immune from civil liability 11 that might otherwise be incurred or imposed for acts or omissions that occurred during 12 the performance of the person's duties on behalf of the department if the person was 13 operating within the scope of the duties delegated to the person under the agreement. 14  (b) The department and its employees are not liable for civil damages as a 15 result of an act or omission in the licensing, monitoring, or supervision of a facility 16 licensed under this chapter. This subsection does not preclude liability for civil 17 damages as a result of gross negligence or reckless or intentional misconduct. 18  Sec. 14.37.820. Penalty. A person who violates a provision of this chapter 19 or a regulation adopted under this chapter is guilty of a class B misdemeanor. 20  Sec. 14.37.900. Definitions. In this chapter, 21  (1) "administrator" means an individual who has general administrative 22 charge and oversight of a facility; 23  (2) "child" means an individual under 18 years of age, and includes an 24 individual who is a relative of a care provider or administrator; 25  (3) "child care" means, care, supervision, and provision of 26 developmental opportunities, with or without compensation, to a child who does not 27 have a parent present; 28  (4) "child care facility" means a place where child care is regularly 29 provided for children under 12 years of age for periods of time that are less than 24 30 hours in duration unless nighttime care is authorized by the department; 31  (5) "criminal justice information" has the meaning given in

01 AS 12.62.900; 02  (6) "department" means the Department of Education and Early 03 Development; 04  (7) "facility" means the administration, program, and physical plant of 05 a child care facility; 06  (8) "licensee" means a person to whom a license has been issued under 07 this chapter; 08  (9) "parent" means a birth or adoptive parent or a legal guardian; 09  (10) "relative" means an individual who is related to another through 10 any of the following relationships, by blood, adoption, or marriage: parent, 11 grandparent, great grandparent, brother, sister, stepparent, stepsister, stepbrother, 12 cousin, aunt, uncle, great-aunt, great-uncle or step-grandparent; 13  (11) "serious offense" has the meaning given in AS 12.62.900. 14 * Sec. 8. AS 14 is amended by adding a new chapter to read: 15 Chapter 38. Head Start, Child Care, and Day Care. 16 Article 1. Head Start. 17  Sec. 14.38.010. Operation of Head Start programs. The Department of 18 Education and Early Development shall operate the head start funding program 19 governed by 42 U.S.C. 9835. 20 Article 2. Day Care Assistance. 21  Sec. 14.38.100. Powers and duties. (a) The department shall 22  (1) implement and administer a program to assist in providing day care 23 for the children of low and moderate income families according to the requirements 24 of AS 14.38.100 - 14.38.199; 25  (2) establish standards of eligibility for day care benefits; 26  (3) contract for the care of children of eligible families; 27  (4) establish procedures to periodically review the needs of families 28 receiving day care benefits; 29  (5) provide notification to the local government body of the request for 30 a contract with a day care facility. 31  (b) The department may

01  (1) adopt regulations necessary for the performance of its duties under 02 AS 14.38.100 - 14.38.199; 03  (2) contract with other entities to perform duties of the department 04 under AS 14.38.100 - 14.38.199 within an area specified by the department; within an 05 area, the department shall give higher priority to contracting with municipalities than 06 with other organizations. 07  Sec. 14.38.110. Administrative costs of program contractors. To defray 08 administrative expenses, a contractor under AS 14.38.100(b) may only retain $1,000 09 or 12 percent, whichever is greater, of the day care assistance program funds it 10 receives from the department under the contract. 11  Sec. 14.38.120. Conditions of receipt of benefits. Benefits may be paid for 12 the care of children of a low or moderate income family only if a parent or guardian, 13 because of the day care, is freed to work or to seek work or to attend school. Benefits 14 may not be paid for the care of children of a family where one parent or guardian is 15 not working, actively seeking work, or attending school and is physically and mentally 16 capable of caring for the children. 17  Sec. 14.38.130. Eligibility of families for benefits. The department shall 18 determine the eligibility of families for day care benefits on the basis of the following 19 factors: 20  (1) income of the family including salary, alimony, child support, 21 retirement benefits, social security, and any other source of income; 22  (2) number of children in the family; 23  (3) whether there is one parent or guardian solely responsible for the 24 care of the family. 25  Sec. 14.38.140. Contributions by parent or guardian. The department shall 26 develop a sliding fee scale based on the factors listed in AS 14.38.130 for purposes of 27 determining the amount to be contributed by the parent or guardian for child care. The 28 contribution of the parent or guardian shall be paid to the day care facility. 29  Sec. 14.38.150. Placement; payment by state. (a) Parents or guardians shall 30 select the day care facility for the care of their children. 31  (b) Benefits shall be paid by the department directly to the municipality or

01 organization contracting with the day care facility. 02 Article 3. Child Care Grants. 03  Sec. 14.38.160. Child care grant program. (a) A child care grant program 04 is established in the department to provide state assistance in the operation of child 05 care facilities. The department shall provide grants for the operation of child care 06 facilities, including private nonprofit child care facilities. Participation in the program 07 is optional. 08  (b) To qualify for a grant under (a) or (d) of this section, the child care facility 09 must 10  (1) be currently licensed under AS 47.35 and applicable municipal 11 licensing requirements; 12  (2) participate in the day care assistance program under AS 14.38.100 - 13 14.38.199; and 14  (3) provide care under a payment system as provided in (g) of this 15 section. 16  (c) A grant under (a) of this section may not exceed $50 per month for each 17 child the child care facility cares for, or for each full-time equivalent, as determined 18 by the department. The grant shall be adjusted on a geographic basis by the same 19 factor as funding for a school district is adjusted under AS 14.17.460. 20  (d) In addition to the grants provided in (a) of this section, the department 21 may, subject to appropriations for that purpose, provide by grant or contract for the 22 education and training of child care employees or administrators. To receive a grant 23 or contract under this subsection or to participate in a training program under this 24 subsection, the child care facility must meet all the requirements of (b) of this section. 25  (e) An application for a grant under this section shall be made in the form 26 established by the department. 27  (f) A grant under (a) of this section shall be made monthly or quarterly and 28 shall be based on the monthly average daily full-time equivalent enrollment in the 29 child care facility. If the method of payment for the grant is other than monthly, it 30 shall be at the request of the child care facility with the approval of the department. 31 Based on criteria established by the department, the department may make quarterly

01 advance payments. 02  (g) Each child care facility receiving a grant under (a) or (d) of this section 03 shall assure that at least 15 percent or one of its child care spaces receiving subsidy 04 under this section, whichever is greater, will be made available, if requested, to 05 children eligible for day care assistance under AS 14.38.100 - 14.38.199, whose 06 parents or guardians wish to pay for care based on attendance only. 07  (h) The State Board of Education shall, in consultation with interested child 08 care providers and parents, adopt regulations to carry out the purposes of this section. 09  Sec. 14.38.199. Definitions. In AS 14.38.100 - 14.38.199, 10  (1) "child" means a person below 13 years of age, or a minor who has 11 a developmental disability; 12  (2) "child care facility" means an establishment licensed under 13 AS 47.35 including but not limited to day care centers, family day care homes, and 14 schools for preschool age children, which provides care for children not related by 15 blood, marriage, or legal adoption to the owner, operator, or manager of the facility; 16  (3) "day care" means the care, supervision, and guidance of a child or 17 children unaccompanied by a parent or legal guardian on a regular basis for periods 18 of less than 24 hours a day; 19  (4) "day care facility" means a center or home licensed in accordance 20 with the provisions of AS 47.35 or recognized by the federal government for the care 21 of children; 22  (5) "department" means the Department of Education and Early 23 Development; 24  (6) "developmental disability" means a disability under which a person 25 is incapable of self-care, as verified by a physician or licensed or certified psychologist 26 who has examined the person. 27 * Sec. 9. AS 14.38.160(b) is amended to read: 28  (b) To qualify for a grant under (a) or (d) of this section, the child care facility 29 must 30  (1) be currently licensed under AS 14.37 [AS 47.35] and applicable 31 municipal licensing requirements;

01  (2) participate in the day care assistance program under AS 14.38.100 - 02 14.38.199; and 03  (3) provide care under a payment system as provided in (g) of this 04 section. 05 * Sec. 10. AS 14.38.199(2) is amended to read: 06  (2) "child care facility" means an establishment licensed under 07 AS 14.37 [AS 47.35] including but not limited to day care centers, family day care 08 homes, and schools for preschool age children, which provides care for children not 09 related by blood, marriage, or legal adoption to the owner, operator, or manager of the 10 facility; 11 * Sec. 11. AS 14.38.199(4) is amended to read: 12  (4) "day care facility" means a center or home licensed in accordance 13 with the provisions of AS 14.37 [AS 47.35] or recognized by the federal government 14 for the care of children; 15 * Sec. 12. AS 14.42.015(a) is amended to read: 16  (a) There is in the Department of Education and Early Development the 17 Alaska Commission on Postsecondary Education consisting of 18  (1) two members of the Board of Regents of the University of Alaska 19 designated by the members of that body; 20  (2) one person representing private higher education in the state 21 selected jointly by the Boards of Trustees of Alaska Pacific University and Sheldon 22 Jackson College from among their membership; 23  (3) one person representing the Department of Education and Early 24 Development selected by the state Board of Education; 25  (4) four persons broadly and equitably representative of the general 26 public appointed by the governor; 27  (5) one member of the Alaska Human Resource Investment Council 28 established by AS 23.15.550 [AS 44.19.620] designated by the members of that body; 29  (6) one person from the members of the local community college 30 advisory councils appointed by the governor; 31  (7) two members from the legislature, one of whom shall be appointed

01 by the president of the senate and one by the speaker of the house of representatives; 02  (8) one person appointed in accordance with (e) of this section who is 03 a full-time student as defined in AS 14.43.160; 04  (9) one administrator appointed by the governor from a proprietary 05 institution of postsecondary education that has an authorization to operate in the state 06 issued under AS 14.48. 07 * Sec. 13. AS 14.43.148(h)(1) is amended to read: 08  (1) "license" 09  (A) means, except as provided in (B) of this paragraph, a 10 license, certificate, permit, registration, or other authorization that, at the time 11 of issuance, will be valid for more than 150 days and that may be acquired 12 from a state agency to perform an occupation, including the following: 13  (i) license relating to boxing or wrestling under 14 AS 05.10; 15  (ii) authorization to perform an occupation regulated 16 under AS 08; 17  (iii) teacher certificate under AS 14.20; 18  (iv) authorization under AS 18.08 to perform emergency 19 medical services; 20  (v) asbestos worker certification under AS 18.31; 21  (vi) boiler operator's license under AS 18.60.395; 22  (vii) certificate of fitness under AS 18.62; 23  (viii) hazardous painting certification under AS 18.63; 24  (ix) certification as a municipal correctional, 25 correctional, probation, or parole officer under AS 18.65.245; 26  (x) security guard license under AS 18.65.400 - 27 18.65.490; 28  (xi) license relating to insurance under AS 21.27; 29  (xii) employment agency permit under AS 23.15.330 - 30 23.15.520; 31  (xiii) registration as a broker-dealer, agent, or investment

01 adviser under AS 45.55.030; 02  (xiv) certification as a pesticide applicator under 03 AS 46.03.320; 04  (xv) certification as a storage tank worker or contractor 05 under AS 46.03.375; 06  (xvi) certification as a water and wastewater works 07 operator under AS 46.30; and 08  (B) does not include 09  (i) a commercial fishing license under AS 16.05.480, 10 including a crewmember fishing license; 11  (ii) a vessel license issued under AS 16.05.490 or 12 16.05.530; 13  (iii) a license issued under AS 14.37 or AS 47.35; 14  (iv) a business license issued under AS 43.70; 15  (v) an entry permit or interim-use permit issued under 16 AS 16.43; or 17  (vi) a driver's license issued under AS 28.15; 18 * Sec. 14. AS 18.70.081 is amended to read: 19  Sec. 18.70.081. Approval of fire protection systems. Before October 30 of 20 each year the Department of Public Safety shall prepare and make available a list of 21 approved fire protection systems to [THE DEPARTMENT OF COMMUNITY AND 22 REGIONAL AFFAIRS,] the Department of Community [COMMERCE] and 23 Economic Development [,] and the public. 24 * Sec. 15. AS 23.05 is amended by adding a new section to read: 25  Sec. 23.05.065. Fees for publications, research data, and other services. 26 The commissioner may establish by regulation and the department may charge 27 reasonable fees for department publications, research data, and other centralized 28 administrative services to cover the cost of reproduction, printing, mailing, distribution, 29 and other centralized administrative services. 30 * Sec. 16. AS 23.15.010 is amended to read: 31  Sec. 23.15.010. Administration of vocational rehabilitation [BOARD OF

01 VOCATIONAL REHABILITATION]. The commissioner shall [BOARD OF 02 EDUCATION WHICH ADMINISTERS THE PROGRAM OF VOCATIONAL 03 EDUCATION IS DESIGNATED AS THE BOARD OF VOCATIONAL 04 REHABILITATION TO] administer the vocational rehabilitation program. 05 * Sec. 17. AS 23.15.020 is amended to read: 06  Sec. 23.15.020. Powers and duties of commissioner [BOARD]. (a) The 07 commissioner [BOARD] may cooperate with a federal agency, as provided and 08 required by federal law for vocational rehabilitation. 09  (b) The commissioner [BOARD] shall comply with the federal laws and the 10 conditions necessary to secure the full benefit of the federal vocational rehabilitation 11 laws, and shall do all things necessary to entitle the state to receive the benefits of the 12 federal laws. 13  (c) The commissioner [BOARD] may do all the things and adopt the 14 regulations that are necessary to carry out the federal laws and the purposes of 15 AS 23.15.010 - 23.15.210. 16 * Sec. 18. AS 23.15.030 is amended to read: 17  Sec. 23.15.030. Appointment of administrative officers. The commissioner 18 [BOARD] may appoint administrative officers [,] and delegate to them the authority 19 necessary to carry out AS 23.15.010 - 23.15.210. 20 * Sec. 19. AS 23.15.040 is amended to read: 21  Sec. 23.15.040. Division of vocational rehabilitation established. The 22 division of vocational rehabilitation is established under the commissioner [BOARD 23 OF VOCATIONAL REHABILITATION] to carry out AS 23.15.010 - 23.15.210. 24 * Sec. 20. AS 23.15.050 is amended to read: 25  Sec. 23.15.050. Director of vocational rehabilitation. The commissioner 26 [BOARD] shall appoint a director of the division of vocational rehabilitation. The 27 director has the administrative authority delegated by the commissioner [BOARD] and 28 necessary to carry out AS 23.15.010 - 23.15.210 and the regulations and policies 29 adopted by the commissioner [BOARD]. 30 * Sec. 21. AS 23.15.060(a) is amended to read: 31  (a) The commissioner [BOARD ACTING THROUGH THE DIVISION OF

01 VOCATIONAL REHABILITATION] may enter into necessary agreements on behalf 02 of the state with the Secretary of Health and Human Services to carry out the 03 provisions of the federal Social Security Act, as amended, and as it is subsequently 04 amended, relating to the making of determinations of disability under Title II and Title 05 XVI of that Act. 06 * Sec. 22. AS 23.15.160 is amended to read: 07  Sec. 23.15.160. Gifts. The commissioner [BOARD] may accept a gift or 08 donation from a public or a private source that is offered unconditionally for carrying 09 out AS 23.15.010 - 23.15.210. The commissioner [BOARD] may accept a conditional 10 gift if, in the judgment of the agency, the conditions are proper and consistent with 11 AS 23.15.010 - 23.15.210. 12 * Sec. 23. AS 23.15 is amended by adding new sections to read: 13 Article 3A. Alaska Human Resource Investment Council. 14  Sec. 23.15.550. Alaska Human Resource Investment Council. (a) The 15 Alaska Human Resource Investment Council is established in the department. The 16 council consists of the following voting members, not to exceed 26: 17  (1) the lieutenant governor or the lieutenant governor's designee; 18  (2) the commissioners of community and economic development, 19 education and early development, health and social services, and labor and workforce 20 development, or each respective commissioner's designee; 21  (3) one representative from the University of Alaska; 22  (4) four additional representatives of education, with one from local 23 public education, one from secondary vocational education, one from a postsecondary 24 vocational education institution, and one from adult basic education; 25  (5) four representatives of business and industry, with at least one 26 representative from the private industry councils appointed under 29 U.S.C. 1512 and 27 subject to reconstitution under 29 U.S.C. 1515; 28  (6) four representatives of organized labor that the governor shall 29 appoint from lists of nominees submitted by recognized state labor organizations; the 30 governor may reject a list submitted under this paragraph and request that another list 31 be submitted;

01  (7) at least one representative from an organization representing 02 employment and training needs of Alaska Natives; 03  (8) at least one representative of a community based service 04 organization; 05  (9) at least one representative who has personal or professional 06 experience with developmental disabilities; and 07  (10) at least one and up to five additional members of the private sector 08 to ensure a private sector majority and regional and local representation on the council. 09  (b) Additional nonvoting members may be appointed to the council from 10 government or nongovernment entities. 11  (c) A member of the council under (a) of this section may appoint a designee 12 to serve in place of the member named in (a) of this section. The member shall 13 appoint the designee in writing. 14  Sec. 23.15.555. Appointment and term of members. (a) Members of the 15 Alaska Human Resource Investment Council other than those listed in 16 AS 23.15.550(a)(1) and (2) are appointed by the governor and serve at the pleasure of 17 the governor. The governor may appoint one person to fill two or more of the places 18 listed in AS 23.15.550(a) if the person is qualified in all of the areas the person 19 represents. A member appointed to fill more than one place under this subsection is 20 entitled to only one vote and may appoint only one designee to replace the member 21 in the event the member is unable to attend a meeting. 22  (b) The voting members of the council other than those listed in 23 AS 23.15.550(a)(1) and (2) serve for staggered four-year terms and may serve until a 24 successor is appointed. An appointment to fill a vacancy shall be made in the same 25 manner as the original appointment and for the balance of the unexpired term. 26  (c) The governor shall ensure that individuals appointed to the council have 27 sufficient expertise to effectively carry out the duties of the council. Expertise of the 28 council includes, where appropriate, knowledge of the long-term needs of individuals 29 preparing to enter the work force; the needs of local, state, and regional labor markets; 30 and the methods for evaluating the effectiveness of vocational training programs in 31 serving varying populations.

01  Sec. 23.15.560. Compensation. Members of the Alaska Human Resource 02 Investment Council listed in or appointed under AS 23.15.550(a), including a designee 03 of a member attending in place of the member, serve without compensation but are 04 entitled to per diem and travel expenses authorized by law for boards and commissions 05 under AS 39.20.180. Nonvoting members of the council appointed under 06 AS 23.15.550(b) serve without compensation and are not entitled to per diem and 07 travel expenses. A commissioner appointed under AS 23.15.550(a)(2) or the 08 commissioner's designee is entitled to per diem and travel expenses as a state 09 employee. 10  Sec. 23.15.565. Officers. The Alaska Human Resource Investment Council 11 shall elect a chair and a vice-chair from among the members listed in or appointed 12 under AS 23.15.550(a)(5). The chair and vice-chair serve in their positions at the 13 pleasure of the council. 14  Sec. 23.15.570. Meetings, quorum, and committees. (a) The Alaska Human 15 Resource Investment Council shall meet not more than three times in a calendar year 16 at the call of the chair to conduct its business. A majority of the members listed in 17 or appointed to the council under AS 23.15.550(a) constitutes a quorum. 18  (b) The council shall establish an executive committee and four permanent 19 standing committees as described in (c) - (g) of this section. The chair of a permanent 20 standing committee must be from the private sector. The council may establish 21 additional standing committees and special committees or subcommittees, not 22 necessarily consisting of council members, to advise and assist the council in carrying 23 out its functions assigned by federal or state statute. The permanent standing 24 committees are 25  (1) the assessment and evaluation committee; 26  (2) the policy and planning committee; 27  (3) the employment and placement committee; and 28  (4) the workforce readiness committee. 29  (c) The executive committee consists of the chair and vice-chair of the council, 30 the immediate past chair of the council, and the chairs of the four standing committees 31 described in (d) - (g) of this section. The executive committee has the duties and may

01 exercise the powers of the council between meetings of the council. The executive 02 committee shall 03  (1) report to the council in a timely fashion on actions taken on behalf 04 of the council; and 05  (2) supervise the affairs of the council between regular meetings of the 06 council. 07  (d) The assessment and evaluation committee shall 08  (1) assess and evaluate programs, initiatives, and the delivery of 09 services to help to ensure equitable distribution of quality education, training, and 10 employment services statewide, especially to rural areas and to programs serving 11 economically disadvantaged citizens; 12  (2) call for and monitor the workforce development system for 13 increased accountability in performance and continuous quality improvement along the 14 goals and strategies of the council's overall statewide strategic plan for workforce 15 development; 16  (3) use evaluation and performance measures to gauge customer 17 satisfaction within the workforce development system; and 18  (4) perform other duties assigned by the council. 19  (e) The policy and planning committee shall 20  (1) build policies regarding day-to-day operations and long-term 21 responsibilities of the council; 22  (2) work to increase awareness of the council and its mission 23 throughout the state; 24  (3) work with all other committees on a statewide strategic plan for 25 workforce development; and 26  (4) perform other duties assigned by the council. 27  (f) The employment and placement committee shall 28  (1) ensure the statewide strategic plan for workforce development 29 addresses 30  (A) customer needs at the local level; 31  (B) moving welfare recipients into the workforce;

01  (C) promoting the hiring of state residents in jobs that have 02 traditionally been filled by out-of-state workers; 03  (D) tailoring employment and training programs to suit state 04 business, industry, and economic development needs; 05  (2) monitor the coordination of service delivery to promote efficiency 06 and to prevent overlap of services among programs; and 07  (3) perform other duties assigned by the council. 08  (g) The workforce readiness committee shall 09  (1) provide oversight for training, education, and employment programs 10 to ensure the programs are delivering education and training that is relevant to local 11 market needs and the career goals of state residents; 12  (2) build partnerships between employers and quality workforce training 13 programs; 14  (3) work to connect the state public and private education systems with 15 business, government, and labor to ensure that state residents are receiving workforce 16 readiness skills throughout the education process; and 17  (4) perform other duties assigned by the council. 18  Sec. 23.15.575. Council as state planning entity. The Alaska Human 19 Resource Investment Council shall act as the lead state planning and coordinating 20 entity for state human resource programs administered under 21  (1) 29 U.S.C. 1501 - 1792b (Job Training Partnership Act); 22  (2) 20 U.S.C. 2301 - 2471 (Carl D. Perkins Vocational and Applied 23 Technology Education Act); 24  (3) 20 U.S.C. 1201 - 1213d (Adult Education Act); 25  (4) 29 U.S.C. 49 - 49l-1 (Wagner - Peyser Act); 26  (5) 42 U.S.C. 681 - 687 (Job Opportunities and Basic Skills Training 27 Program) for needy families with children under the Social Security Act; 28  (6) the employment program established under 7 U.S.C. 2015(d)(4) 29 (Food Stamp Act of 1977); 30  (7) all federal programs designated as successors to the programs listed 31 in (1) - (6) of this section; and

01  (8) all state laws involving employment training, vocational education, 02 workforce development, and community service. 03  Sec. 23.15.580. Functions of the council. (a) As the lead state planning and 04 coordinating entity, the Alaska Human Resource Investment Council has responsibility, 05 to the extent authorized by federal and state law, for planning and coordinating federal, 06 state, and local efforts in human resource programs in this state related to employment 07 training, including the work activities of the Alaska temporary assistance program 08 under AS 47.27. 09  (b) The council shall 10  (1) facilitate the development of statewide policy for a coordinated and 11 effective employment training and education system in this state; 12  (2) identify the human resource investment needs in the state and 13 develop a plan to meet those needs; 14  (3) review the provision of services and the use of money and resources 15 by the human resource programs listed in AS 23.15.575; 16  (4) assume the duties and functions of the state councils described 17 under the laws relating to the federal human resource programs listed in AS 23.15.575; 18  (5) advise the governor, state and local agencies, and the University of 19 Alaska on the development of state and local standards and measures relating to 20 applicable human resource programs; 21  (6) submit, to the governor and the legislature, a biennial strategic plan 22 to accomplish the goals developed to meet human resource investment needs; 23  (7) monitor for the implementation and evaluate the effectiveness of the 24 strategic plan developed by the council; 25  (8) adopt regulations that set standards for the percentage of a grant 26 that may be used for administrative costs; the regulations must clearly identify and 27 distinguish between expenses that may be included in administrative costs and those 28 that may not be included in administrative costs; the percentage allowed for 29 administrative costs may not exceed the lesser of 15 percent or the amount permitted 30 under the requirements of a federal program, if applicable; 31  (9) report annually to the legislature, by the 30th day of the regular

01 legislative session, on the performance and evaluation of training programs in the state 02 subject to review under (f) of this section; 03  (10) identify ways for agencies operating programs subject to oversight 04 by the council to share resources, instructors, and curricula through collaboration with 05 other public and private entities to increase training opportunities and reduce costs; and 06  (11) adopt regulations under AS 44.62 (Administrative Procedure Act) 07 to carry out the purposes of AS 23.15.550 - 23.15.585. 08  (c) The council may receive money designated for human resource programs 09 and may disburse money, including grants, to human resource projects in accordance 10 with AS 37.07 (Executive Budget Act). The council may enter into partnership 11 agreements through appropriate administrative agencies with private industry training 12 entities within the state in order to facilitate the coordination of training opportunities. 13  (d) The council shall provide oversight for the planning and coordination of 14 employment-related education training programs operated by the state or operated 15 under contract with the state that are described in (f) of this section. The council shall 16 require a training program listed in (f) of this section to meet the requirements of this 17 subsection. The council shall, by regulation, establish appropriate penalties for 18 programs that fail to meet the requirements of this subsection. The council may 19 recommend to the legislature changes to enhance the effectiveness of the training 20 programs it oversees under this section. A training program described in (f) of this 21 section funded with money appropriated by the legislature must 22  (1) meet the standards adopted by the council concerning the 23 percentage of a grant that may be spent on administrative costs; 24  (2) be operated by an institution that holds a valid authorization to 25 operate issued under AS 14.48 by the Alaska Commission on Postsecondary Education 26 if the program is a postsecondary educational program operated by a postsecondary 27 educational institution subject to regulation under AS 14.48; 28  (3) provide to the Department of Labor and Workforce Development 29 the information required by the department for the preparation of the statistical 30 information necessary for the council to evaluate programs by the standards set out in 31 (e) of this section.

01  (e) The council shall develop standards that encourage agencies to contract for 02 training programs that maximize the program's class size. The council shall adopt 03 standards for the evaluation of training programs listed in (f) of this section with 04 regard to the following: 05  (1) the percent of former participants who have a job one year after 06 leaving the training program; 07  (2) the median wage of former participants seven to 12 months after 08 leaving the program; 09  (3) the percent of former participants who were employed after leaving 10 the training program who received training under the program that was related to their 11 jobs or somewhat related to their jobs seven to 12 months after leaving the training 12 program; 13  (4) the percent of former participants of a training program who 14 indicate that they were satisfied with or somewhat satisfied with the overall quality of 15 the training program; 16  (5) the percent of employers who indicate that they were satisfied with 17 the quality of the work of new employees who had recently completed the training 18 program. 19  (f) The following training programs are subject to the provisions of (d) and (e) 20 of this section: 21  (1) in the Department of Labor and Workforce Development or 22 operated by the department: 23  (A) One Stop Career Center; 24  (B) Job Training Partnership Act programs under 29 U.S.C. 25 1501 - 1792b, assisting communities in moving toward a self-sustainable 26 economy and providing training; 27  (C) state training and employment program (AS 23.15.620), 28 providing training and employment services for people who are unemployed or 29 likely to become unemployed, fostering new jobs, and increasing training 30 opportunities for workers severely affected by fluctuations in the state economy 31 or adversely affected by technology advances in the workplace;

01  (D) employment-related adult basic education; 02  (E) School-to-Work; 03  (F) employment training services operated as part of the Alaska 04 Temporary Assistance Program (ATAP); 05  (G) unemployment insurance grants provided under the federal 06 training relocation assistance program; 07  (H) Alaska works programs, assisting with the welfare-to-work 08 program; 09  (I) state training and employment program, coordinated with the 10 Department of Community and Economic Development; 11  (2) in the Department of Education and Early Development or operated 12 by the department, the non-public-school portions of the following programs: 13  (A) high school completion project; 14  (B) Kotzebue Technical Center; 15  (C) Alaska Vocational Technical Center; 16  (D) vocational education and Tech Prep; 17  (E) Alaska Career Information System. 18  (g) The council shall assess the programs listed in this subsection and make 19 recommendations to the legislature in its report required under (b)(9) of this section 20 about whether to include one or more of these programs under the requirements of (f) 21 of this section: 22  (1) in the Department of Community and Economic Development or 23 operated by the department: 24  (A) local government assistance training and development, 25 including the rural utility business advisory program; 26  (B) energy operations, providing training in management and 27 administration of electric utilities and bulk fuel storage systems; 28  (2) in the Department of Corrections: 29  (A) Correctional Academy, training individuals applying for a 30 correctional officer position; 31  (B) inmate programs, providing vocational technical training and

01 education courses for inmates preparing to be released from a correctional 02 facility; 03  (C) correctional industries program, providing inmates with jobs 04 while they are incarcerated; 05  (3) in the Department of Environmental Conservation: 06  (A) remote maintenance worker program, providing training and 07 technical assistance to communities to keep drinking water and sewage disposal 08 systems running, and providing on-the-job training to local operators; 09  (B) water and wastewater operator training and assistance; 10  (C) federal drinking water operator training and certification; 11  (4) in the Department of Military and Veterans' Affairs: educational 12 benefits for members of the Alaska National Guard and the Alaska Naval Militia; 13  (5) in the Department of Public Safety: 14  (A) fire service training to maintain emergency training skills 15 for existing fire fighter staff and volunteers and individuals interested in 16 becoming fire fighters; 17  (B) Public Safety Training Academy, training trooper recruits; 18  (6) in the Department of Transportation and Public Facilities: 19  (A) engineer-in-training program, providing on-the-job training 20 for apprentice engineers to enable them to gain the experience necessary to be 21 certified; 22  (B) statewide transportation improvement program, offered by 23 the United States National Highway Institute; 24  (C) local technical assistance program, transferring technical 25 expertise to local governments; 26  (D) Native technical assistance program, transferring technical 27 expertise to Native governments; 28  (E) border technology exchange program, to coordinate highway 29 issues with the Yukon Territory; 30  (7) in the Department of Labor and Workforce Development: vocational 31 rehabilitation client services and special work projects, employment services, including

01 job development, assisting individuals in finding employment, and assisting employed 02 individuals in finding other employment; 03  (8) in the Department of Administration: Alaska Professional 04 Development Institute, providing continuing education and training for employed 05 workers. 06  (h) The University of Alaska shall evaluate the performance of its training 07 programs using the standards set out in (e) of this section and shall provide a report 08 on the results to the council for inclusion in the council's annual report to the 09 legislature. 10  (i) The council shall review each program listed in (f) of this section to 11 determine whether it is in compliance with the standards set out in (d) and (e) of this 12 section. If the council finds that a program has failed to comply with the standards 13 set out in (d) and (e) of this section, it shall notify the program director of the failure. 14 If the program director fails to improve the performance of the program within a 15 reasonable time, the council shall notify the governor and the legislative budget and 16 audit committee that the program is out of compliance. A contract entered into by a 17 state agency relating to a training program set out in (f) of this section must contain 18 terms consistent with this section. 19  (j) A department that operates or contracts for a training program listed in (f) 20 of this section shall pay to the council a management assessment fee not to exceed .75 21 percent of the program's annual operating budget. The total amount received as 22 management assessment fees may not exceed the council's authorized budget for the 23 fiscal year. The council shall, by regulation, establish a method to determine annually 24 the amount of the management assessment fee. If the amount the council expects to 25 collect under this subsection exceeds the authorized budget of the council, the council 26 shall reduce the percentages set out in this subsection so that the total amount of the 27 fees collected approximately equals the authorized budget of the council for the fiscal 28 year. The council shall adopt regulations under AS 44.62 (Administrative Procedure 29 Act) necessary to administer this subsection. 30  (k) Upon the enactment of a new federal or state program relating to work 31 force development, the council shall

01  (1) advise the governor and the legislature on whether the council 02 should provide oversight for the new program under this section; and 03  (2) make recommendations necessary to streamline and coordinate state 04 efforts to meet the guidelines of the new program. 05  (l) For purposes of this section, "program" 06  (1) does not refer to the overall activities of an individual institution 07 or individual fields of study or courses that are not associated with programs for which 08 the council has oversight responsibility; 09  (2) may include a certificate or associate degree course or a course that 10 is not for credit, whether it is offered by a public or private institute or contracted for 11 by the private sector, so long as it is related to employment. 12  Sec. 23.15.585. Administration. (a) The governor shall appoint the executive 13 director for the Alaska Human Resource Investment Council. The department shall 14 provide professional, technical, and administrative staff for the Alaska Human 15 Resource Investment Council. 16  (b) Subject to legislative appropriations, and in accordance with AS 37.07 17 (Executive Budget Act), the council's budget is funded from programs for which the 18 council is the lead state planning and coordinating entity under AS 23.15.575. 19 * Sec. 24. AS 23.15.645(b) is amended to read: 20  (b) When a grant is awarded to the council, the department shall annually 21 provide to the council a priority list of targeted projects or services, based on 22 unemployment statistics, unemployment insurance claims, occupational and industrial 23 projections, availability of other training and employment programs, and other relevant 24 data. The department shall also provide annually to the council a priority list of 25 criteria for eligibility to maximize services to those people most in need of training 26 under AS 23.15.620 - 23.15.660. In developing the priority list for targeted projects 27 and services, the department shall solicit comments from the [DEPARTMENT OF 28 COMMUNITY AND REGIONAL AFFAIRS,] Department of Education and Early 29 Development , the Department of Community [COMMERCE] and Economic 30 Development, the University of Alaska, organized labor, the council, and the 31 administrative entities of the substate service delivery areas established for the council.

01 The department shall give preference to projects and services that train individuals in 02 industries identified in the resident hire report required under AS 36.10.130 as 03 employing a disproportionate percentage of nonresident individuals. 04 * Sec. 25. AS 23.15.660(1) is amended to read: 05  (1) "council" means the Alaska Human Resource Investment Council 06 established in AS 23.15.550 [AS 44.19.620]; 07 * Sec. 26. AS 23.15 is amended by adding new sections to read: 08 Article 6. Business Incentive Training Program. 09  Sec. 23.15.700. Business incentive training program established. (a) There 10 is established in the department the business incentive training program. The incentive 11 program shall be administered as a supplement to the Job Training Partnership Act 12 (P.L. No. 97-300). 13  (b) The purpose of the incentive program is to encourage private industry to 14 provide new job opportunities by offering assistance in training the new work force 15 and in retraining existing employees to implement new technologies. 16  Sec. 23.15.710. Administration. (a) The Alaska Human Resource Investment 17 Council shall oversee the incentive program. The service delivery areas established 18 under 29 U.S.C. 1511 and subject to redesignation under 29 U.S.C. 1515 shall be used 19 in the administration of the incentive program. The private industry councils appointed 20 under 29 U.S.C. 1512 and subject to reconstitution under 29 U.S.C. 1515 shall serve 21 as the private industry councils for the incentive program. 22  (b) The council shall divide appropriations for the incentive program equally 23 among the private industry councils. If a private industry council lacks sufficient 24 money to fund a proposal, the private industry council may apply to the council for 25 additional funding. The council may approve reallocation of money from one service 26 delivery area to another to fund a particular proposal if it finds that the reallocation 27 will best serve the purposes of the program. 28  (c) The council shall adopt regulations under AS 44.62 (Administrative 29 Procedure Act) to implement AS 23.15.700 - 23.15.810. 30  Sec. 23.15.720. Business incentive training plan. (a) A private industry 31 council shall adopt a business incentive training plan for the service delivery area. The

01 plan must extend for two years to coincide with the term for the Job Training 02 Partnership Act (P.L. 97-300) and must contain 03  (1) identification of the entity or entities that will administer the 04 incentive program and be the grant recipient for grants from the state; 05  (2) a description of the services to be provided, including the estimated 06 duration of service and the estimated training cost per participant; 07  (3) procedures for identifying and selecting participants; 08  (4) performance goals established in accordance with standards under 09 AS 23.15.780; 10  (5) procedures for awarding grants to businesses; and 11  (6) the budget for two program years and any proposed expenditures 12 for the succeeding two program years in as much detail as required by the grant 13 administrator designated under AS 23.15.740. 14  (b) If changes in labor market conditions, funding, or other factors require 15 substantial deviation from an approved business incentive training plan, the private 16 industry council and the appropriate elected municipal official or officials shall submit 17 a modification of the plan and the budget for review under AS 23.15.730. 18  Sec. 23.15.730. Review and approval of business incentive training plan. 19 The business incentive training plan shall be published and made available for review 20 and comment as an attachment to the job training plan as set out in 29 U.S.C. 1515. 21 The business incentive training plan is subject to review and approval by the governor. 22  Sec. 23.15.740. Business incentive training grants. (a) Each private industry 23 council shall designate an administrative entity to be the grant recipient and 24 administrator for the region. An employer may apply to the grant administrator for a 25 business incentive grant if the employer is a private for-profit or nonprofit corporation, 26 partnership, or sole proprietor business. The grant administrator shall review 27 applications and award grants. 28  (b) Each grant administrator is responsible for the allocation of funds and the 29 eligibility of those enrolled in its programs. The grant administrator is responsible for 30 taking action against its subcontractors, subgrantees, and other recipients to eliminate 31 abuses in the programs they are carrying out, and to prevent misuse of funds. If the

01 arrangement is included in an approved job training plan, a grant administrator may 02 delegate the responsibility for determining eligibility under reasonable safeguards, 03 including provisions for reimbursement of costs incurred because of erroneous 04 determinations made with insufficient care. 05  (c) A business incentive training grant shall be used to recruit and train eligible 06 employees for newly created permanent or permanent seasonal positions or to enable 07 existing employees to acquire the skills necessary to qualify the employee to 08 implement new technologies. A business incentive training grant may be used for 09 occupations for which there is a demand in the area served or in another area to which 10 the participant is willing to relocate and for emerging technologies in the state. In 11 selecting recruiting and training programs, the private industry councils and the grant 12 administrators may consider whether the occupation in which recruiting or training is 13 sought is in a sector of the economy that has a high potential for sustained demand or 14 growth. 15  (d) Only individuals eligible under the business incentive training plan and 16 residing in the service delivery area may be participants in employment and training 17 activities funded under the business incentive training program. To be eligible for 18 training or education services under AS 23.15.700 - 23.15.810, immediately before 19 beginning training or education under the program a person shall 20  (1) have been unemployed and 21  (A) receiving unemployment insurance benefits; or 22  (B) have exhausted the right to unemployment insurance 23 benefits within the past three years; 24  (2) be liable to be displaced from work within the next six months 25 because of 26  (A) reductions in overall employment within the business; 27  (B) elimination of the person's current job; or 28  (C) a change in the conditions of the employee's job requiring 29 that, to remain employed, the employee must have substantially different skills 30 that the employee does not now possess; or 31  (3) have worked in a position covered by AS 23.20 at any time during

01 the last three years and be ineligible for unemployment insurance benefits because the 02 person 03  (A) was working in a seasonal, temporary, part-time, or other 04 marginal employment; 05  (B) has insufficient qualifying wages because of limited job 06 opportunities; or 07  (C) is employed, but, because the person is underemployed, the 08 person needs employment assistance and training to obtain full employment. 09  (e) Payments to employers for on-the-job training of participants who 10 experience multiple barriers to employment or are eligible under the Job Training 11 Partnership Act (P.L. 97-300) may not average more than 80 percent of the wages paid 12 by the employer to the participant. Payments to employers for on-the-job training of 13 other participants may not average more than 50 percent of the wages paid by the 14 employer to participants. The payments shall be considered to be in compensation for 15 the extraordinary costs associated with training employees for new positions and the 16 lower productivity of the participants. 17  (f) A grant made under the business incentive training program may not be 18 used to duplicate facilities or services available in the area from federal, state, or local 19 sources unless the business incentive training plan establishes that services or facilities 20 under the program would be more effective or more likely to achieve performance 21 goals. 22  (g) A fee may not be charged for placing an individual in or referring an 23 individual to a training program under AS 23.15.700 - 23.15.810. 24  (h) A business incentive training grant may not be awarded to a program that 25 involves political activities. 26  (i) An employer at whose request a participant is offered training shall fulfill 27 the obligation to offer a successful participant in the business incentive training 28 program a position or promotion, as applicable. A participant is considered successful 29 if the participant satisfactorily completes the training program in which the participant 30 was enrolled. 31  Sec. 23.15.750. Compensation for participants. (a) A trainee may not

01 receive a payment for training activities in which the trainee fails to participate. 02  (b) An individual in on-the-job training shall be compensated by the employer 03 at the same rates, including periodic increases, as similarly situated employees or 04 trainees and in accordance with applicable law. However, an individual may not be 05 paid less than the state minimum wage under AS 23.10.065 whether or not the 06 individual is exempt under AS 23.10.055 or 23.10.070. 07  (c) An individual employed in activities authorized under the business 08 incentive training program other than on-the-job training shall be paid wages that are 09 not less than the highest of 10  (1) the state minimum wage under AS 23.10.065; 11  (2) the prevailing rate of pay for individuals employed in similar 12 occupations by the same employer; or 13  (3) the prevailing rate of wages under AS 36.05 or 40 U.S.C. 276a - 14 276a-5, if applicable. 15  (d) Allowances, earnings, and payments to individuals participating in 16 programs under the business incentive training program may not be considered as 17 income in determining eligibility for and the amount of income transfer and in-kind 18 aid furnished under a state program based on need, other than programs under the 19 Social Security Act. 20  (e) Conditions of employment and training must be appropriate and reasonable 21 in light of factors including the type of work, geographical region, and proficiency of 22 the participant. 23  (f) An individual employed in a subsidized job under the business incentive 24 training program shall be provided benefits and working conditions at the same level 25 and to the same extent as other employees working a similar length of time and doing 26 the same type of work. 27  (g) Money from a grant under the business incentive training program may not 28 be used for contributions on behalf of a participant to retirement systems or plans. 29  Sec. 23.15.760. Reporting and record keeping. (a) A grant administrator 30 shall maintain records of each participant's enrollment in a business incentive training 31 program in sufficient detail to demonstrate compliance with AS 23.15.700 - 23.15.810.

01  (b) The council shall adopt regulations concerning retention of records. 02  (c) The council shall, no later than February 1 of each year, prepare a report 03 concerning the incentive program and notify the legislature that the report is available. 04  Sec. 23.15.770. Allowable costs. (a) To be allowable, a cost must be 05 necessary and reasonable for proper and efficient administration of the program. The 06 following costs are not allowable: 07  (1) costs resulting from violations of or failure to comply with federal, 08 state, or local laws and regulations; 09  (2) entertainment costs; and 10  (3) insurance policies offering protection against debts established by 11 the federal government. 12  (b) Personal liability insurance for members of the private industry council is 13 an allowable cost. 14  Sec. 23.15.780. Performance standards. (a) The basic measure of 15 performance for training programs under AS 23.15.700 - 23.15.810 is the increase in 16 jobs in the area and in employment and earnings for participants resulting from 17 participation in the program. In order to determine whether these standards are 18 achieved, the governor shall adopt standards based on appropriate factors. 19  (b) The governor shall provide technical assistance to programs that do not 20 meet performance criteria. If a program fails to meet performance standards for two 21 consecutive years, the governor shall withdraw unencumbered funds from the program. 22  (c) An interested party who is harmed by a change made under this section is 23 entitled to a hearing under AS 44.62 (Administrative Procedure Act). 24  Sec. 23.15.790. Limitation on certain costs. No more than 15 percent of the 25 money available to a service delivery area for a fiscal year may be expended for the 26 cost of administration. For purposes of this section, costs of program support, 27 including counseling, that are directly related to the provision of education or training 28 to participants may not be counted as part of the cost of administration. 29  Sec. 23.15.800. Selection of service providers. (a) The primary 30 consideration in selecting agencies or organizations to deliver services within a service 31 delivery area is the effectiveness of the agency or organization in delivering

01 comparable or related services based on demonstrated performance, in terms of the 02 likelihood of meeting performance goals, cost, quality of training, and characteristics 03 of participants. In complying with this subsection, proper consideration shall be given 04 to community based organizations as service providers. 05  (b) Appropriate education agencies in the service delivery area shall be given 06 the opportunity to provide educational services, unless the grant administrator 07 determines that alternative agencies or organizations would be more effective or would 08 have greater potential to enhance the participants' continued occupational and career 09 growth. 10  (c) The grant administrator may not fund an occupational skills training 11 program unless the level of skills provided in the program is in accordance with 12 guidelines established by the private industry council. 13  Sec. 23.15.810. Definitions. In AS 23.15.700 - 23.15.810, 14  (1) "council" means the Alaska Human Resource Investment Council; 15  (2) "incentive program" means the business incentive training program 16 established under AS 23.15.700; 17  (3) "participant" means an individual receiving education or training, 18 including on-the-job training, under an incentive program grant. 19 * Sec. 27. AS 23.20.110(a) is amended to read: 20  (a) Except as provided in (h) and (i) of this section, the department shall hold 21 information obtained from an employing unit or individual in the course of 22 administering this chapter and determinations as to the benefit rights of an individual 23 confidential and may not disclose them or open them to public inspection in a manner 24 that reveals the identity of the individual or employing unit. A claimant or an 25 employing unit, or the legal representative of the claimant or the employing unit, is 26 entitled to information from the records of the department to the extent necessary to 27 properly present or protest a claim or determination under this chapter. Subject to 28 restrictions that the department prescribes by regulation, the information may be made 29 available to an agency of this state or another state or federal agency charged with the 30 administration of an unemployment compensation law or the maintenance of a system 31 of public employment offices, or, for the purposes of the Federal Unemployment Tax

01 Act, to the Internal Revenue Service of the United States, or, for tax purposes, to the 02 Department of Revenue. Information obtained in the course of administering this 03 chapter or in connection with the administration of the employment service may be 04 made available to persons or agencies for purposes appropriate to the operation of a 05 public employment service or the administration of employment and training programs 06 planned or coordinated by the Alaska Human Resource Investment Council under 07 AS 23.15.550 - 23.15.585 [AS 44.19.620 - 44.19.627]. 08 * Sec. 28. AS 25.27.244(s)(2) is amended to read: 09  (2) "license" 10  (A) means, except as provided in (B) of this paragraph, a 11 license, certificate, permit, registration, or other authorization that, at the time 12 of issuance, will be valid for more than 150 days and that may be acquired 13 from a state agency to perform an occupation, including the following: 14  (i) license relating to boxing or wrestling under 15 AS 05.10; 16  (ii) authorization to perform an occupation regulated 17 under AS 08; 18  (iii) teacher certificate under AS 14.20; 19  (iv) authorization under AS 18.08 to perform emergency 20 medical services; 21  (v) asbestos worker certification under AS 18.31; 22  (vi) boiler operator's license under AS 18.60.395; 23  (vii) certificate of fitness under AS 18.62; 24  (viii) hazardous painting certification under AS 18.63; 25  (ix) security guard license under AS 18.65.400 - 26 18.65.490; 27  (x) license relating to insurance under AS 21.27; 28  (xi) employment agency permit under AS 23.15.330 - 29 23.15.520; 30  (xii) registration as a broker-dealer, agent, or investment 31 adviser under AS 45.55.030;

01  (xiii) certification as a pesticide applicator under 02 AS 46.03.320; 03  (xiv) certification as a storage tank worker or contractor 04 under AS 46.03.375; 05  (xv) certification as a water and wastewater works 06 operator under AS 46.30; and 07  (xvi) commercial crewmember fishing license under 08 AS 16.05.480 other than an entry permit or interim-use permit under 09 AS 16.43; 10  (B) does not include 11  (i) a vessel license issued under AS 16.05.490 or 12 16.05.530; 13  (ii) a license issued under AS 14.37 or AS 47.35; 14  (iii) a business license issued under AS 43.70; 15  (iv) an entry permit or interim-use permit issued under 16 AS 16.43; or 17  (v) a driver's license issued under AS 28.15; 18 * Sec. 29. AS 29.06.040(c) is amended to read: 19  (c) In addition to the regulations governing annexation by local action adopted 20 under AS 44.33.812 [AS 44.47.567], the Local Boundary Commission shall establish 21 procedures for annexation and detachment of territory by municipalities by local 22 action. The procedures established under this subsection must include a provision that 23  (1) a proposed annexation and detachment must be approved by a 24 majority of votes on the question cast by voters residing in the area proposed to be 25 annexed or detached; 26  (2) municipally owned property adjoining the municipality may be 27 annexed by ordinance without voter approval; and 28  (3) an area adjoining the municipality may be annexed by ordinance 29 without an election if all property owners and voters in the area petition the governing 30 body. 31 * Sec. 30. AS 29.60.599(9) is amended to read:

01  (9) "village" means a place within the unorganized borough or within 02 a borough if the power, function, or service for which a grant application is submitted 03 under AS 29.60.500 - 29.60.599 is not exercised or provided by the borough on an 04 areawide or nonareawide basis at the time the grant application is submitted, that 05  (A) has irrevocably waived, in a form approved by the 06 Department of Law, any claim of sovereign immunity that might arise in 07 connection with the use of grant money under this chapter; and 08  (B) has 09  (i) a council organized under 25 U.S.C. 476 (sec. 16 of 10 the Indian Reorganization Act); 11  (ii) a traditional village council recognized by the United 12 States as eligible for federal aid to Indians; or 13  (iii) a council recognized by the commissioner under 14 regulations adopted by the department to determine and give official 15 recognition of village entities under AS 44.33.755(b) [AS 44.47.150(b)]. 16 * Sec. 31. AS 29.65.060(f) is amended to read: 17  (f) For purposes of determining the per capita entitlement under (a) of this 18 section, the population of a municipality shall be the population determined by the 19 former commissioner of community and regional affairs under former AS 43.18.010 20 for the program year beginning July 1, 1978, for a municipality whose entitlement was 21 determined under former AS 29.18.201 or 29.18.202. 22 * Sec. 32. AS 30.13.010(a) is amended to read: 23  (a) The residents of each area of the state within the boundaries of a regional 24 housing authority established under AS 18.55.996 that [WHICH] is located in whole 25 or in part in the unorganized borough of the state may create a public body corporate 26 and politic under the name and style of the "Resource Development Authority" with 27 all or any significant part of the name of the region of the state inserted. The 28 boundaries of the authority created shall be coterminous with the portion of the 29 applicable regional housing authority that lies in the unorganized borough. Creation 30 of an authority is initiated by a petition filed with the Department of Community and 31 Economic Development [REGIONAL AFFAIRS] and a statement submitted to the

01 governor. The petition must include the proposed name of the authority, its 02 boundaries, and a statement of the facilities proposed to be provided by the authority. 03 The petition must be signed by 15 percent of the total number of residents in the 04 portion of the applicable regional housing authority that lies in the unorganized 05 borough who cast votes in the preceding general election. The Department of 06 Community and Economic Development [REGIONAL AFFAIRS] shall review 07 petitions for content and signatures. If the department determines that the petition is 08 adequate, it shall transmit the petition to the director of elections. 09 * Sec. 33. AS 36.30.170(g) is amended to read: 10  (g) The division of vocational rehabilitation in the Department of Labor and 11 Workforce Development [EDUCATION] shall add to its current list of qualified 12 employment programs a list of individuals who qualify as persons with a disability 13 under (e) of this section and of persons who qualify under (f) of this section as 14 employers with 50 percent or more of their employees being persons with disabilities. 15 A person must be on this list at the time the bid is opened in order to qualify for a 16 preference under (e) or (f) of this section. 17 * Sec. 34. AS 36.30.850(b)(11) is amended to read: 18  (11) agreements with providers of services under AS 14.38.100 19 [AS 44.47.250]; AS 47.07; AS 47.08; AS 47.10; 47.17; AS 47.24; and AS 47.27, 20 including contractors under AS 47.27.050; 21 * Sec. 35. AS 36.30.850(b)(30) is amended to read: 22  (30) contracts entered into with a regional development organization; 23 in this paragraph, "regional development organization" has the meaning given in 24 AS 44.33.895 [AS 44.47.900]; 25 * Sec. 36. AS 37.05.315(a) is amended to read: 26  (a) When an amount is appropriated or allocated as a grant to a municipality, 27 the Department of Community and Economic Development [ADMINISTRATION] 28 shall promptly notify the municipality of the availability of the grant. When the 29 Department of Community and Economic Development [ADMINISTRATION] 30 receives an agreement executed by the municipality that [WHICH] provides that the 31 municipality (1) will spend the grant for the purposes specified in the appropriation or

01 allocation; (2) will allow, on request, an audit by the state of the uses made of the 02 grant; and (3) assures that, to the extent consistent with the purpose of the 03 appropriation or allocation, the facilities and services provided with the grant will be 04 available for the use of the general public, the Department of Community and 05 Economic Development [ADMINISTRATION] shall pay the grant directly to the 06 municipality. The agreement executed by a municipality under this section shall be 07 on a form furnished by the Department of Community and Economic Development 08 [ADMINISTRATION] and shall be executed within 60 days after the effective date 09 of the appropriation or allocation. 10 * Sec. 37. AS 37.05.315(d) is amended to read: 11  (d) Not less than 20 percent of a grant shall be paid to a municipality within 12 10 days of the effective date of the agreement under (a) of this section. The remainder 13 of the grant shall be paid either in monthly installments equal to the amount of grant 14 money the municipality expended in the previous month or in a lump sum as 15 determined by the Department of Community and Economic Development 16 [ADMINISTRATION]. 17 * Sec. 38. AS 37.06.010(j) is amended to read: 18  (j) In this section, unless specified otherwise, "department" means the 19 Department of Community and Economic Development [ADMINISTRATION]. 20 * Sec. 39. AS 37.06.020(i) is amended to read: 21  (i) The limitations of AS 44.33.745 [AS 44.47.140] do not apply to a grant 22 made under this section. 23 * Sec. 40. AS 37.06.040 is amended to read: 24  Sec. 37.06.040. Municipalities organized under federal law. An entity 25 organized under federal law as an Indian reserve that existed before enactment of 43 26 U.S.C. 1618(a) and is continued in existence under that subsection is a municipality 27 for purposes of AS 37.06.010 - 37.06.090 and may not receive a grant under 28 AS 37.06.020. In addition to other eligibility requirements applicable to municipalities, 29 to qualify to receive a grant under AS 37.06.010, a municipality organized under 30 federal law as an Indian reserve shall form a community development corporation with 31 authority to determine how the grant money will be used. The corporation's charter

01 must require that the governing board of the corporation shall be elected at an annual 02 election open to all residents of the municipality who are registered and qualified to 03 vote in state elections. The Department of Community and Economic Development 04 [ADMINISTRATION] may distribute money for the municipality only to a corporation 05 organized in accordance with this section and only after the corporation has delivered 06 a written waiver of sovereign immunity from legal action by the state to recover all 07 or a portion of the money distributed under AS 37.06.010. 08 * Sec. 41. AS 37.06.080 is amended to read: 09  Sec. 37.06.080. Adoption of regulations. The Department of Community 10 and Economic Development [ADMINISTRATION FOR GRANTS UNDER 11 AS 37.06.010 AND THE DEPARTMENT OF COMMUNITY AND REGIONAL 12 AFFAIRS FOR GRANTS UNDER AS 37.06.020] 13  (1) may adopt regulations that impose additional requirements or 14 procedures to implement, interpret, make specific, or otherwise carry out the 15 [APPLICABLE] provisions of this chapter [FOR GRANTS ADMINISTERED BY 16 THE DEPARTMENT]; 17  (2) shall adopt regulations providing for periodic audits of the use of 18 money for grants [ADMINISTERED BY THE DEPARTMENT] under this chapter, 19 including audit of the department's determination of the value of, and adequacy of the 20 verification of the actual use of, locally funded or contributed labor on projects funded 21 by a grant under this chapter. 22 * Sec. 42. AS 38.06.025(a) is amended to read: 23  (a) The board consists of the commissioner of community [COMMERCE] and 24 economic development; the commissioner of revenue [COMMUNITY AND 25 REGIONAL AFFAIRS]; the commissioner of natural resources, who is a nonvoting 26 member; and five public members. 27 * Sec. 43. AS 39.25.120(c)(15) is amended to read: 28  (15) [THE DEPUTY DIRECTOR OF THE DIVISION OF TOURISM 29 AND] the deputy director of the division of insurance in the Department of 30 Community [COMMERCE] and Economic Development; 31 * Sec. 44. AS 39.25.158(b) is amended to read:

01  (b) After an employee requests to return to work, the reemployment benefits 02 administrator of the division of workers' compensation or the director of vocational 03 rehabilitation in the Department of Labor and Workforce Development 04 [EDUCATION] shall review the request and certify that the employee is able to return 05 to work under (c), (d), (e), or (f) of this section, or defer certification until the 06 employee completes retraining under (f) of this section. 07 * Sec. 45. AS 39.50.200(b)(18) is amended to read: 08  (18) Local Boundary Commission ( AS 44.33.810 [AS 44.47.565]); 09 * Sec. 46. AS 39.50.200(b)(55) is amended to read: 10  (55) Alaska Human Resource Investment Council (AS 23.15.550) 11 [(AS 44.19.620)]. 12 * Sec. 47. AS 42.45.060(a) is amended to read: 13  (a) A loan committee consisting of five [SEVEN] members is established. The 14 committee is composed of the executive director of the Alaska Energy Authority 15 [COMMISSIONER OF COMMUNITY AND REGIONAL AFFAIRS, THE 16 COMMISSIONER OF COMMERCE AND ECONOMIC DEVELOPMENT], the 17 director of management and budget, or the designees of the executive director 18 [COMMISSIONERS] or the director, and three [FOUR] public members. 19 * Sec. 48. AS 42.45.060(c) is amended to read: 20  (c) The executive director of the Alaska Energy Authority 21 [COMMISSIONER OF COMMUNITY AND REGIONAL AFFAIRS] serves as chair 22 of the committee. The committee may elect other officers as necessary. A majority 23 of the members of the committee constitute a quorum and may exercise the powers of 24 the committee. 25 * Sec. 49. AS 42.45.990 is amended by adding a new paragraph to read: 26  (6) "authority" means the Alaska Energy Authority. 27 * Sec. 50. AS 44.19.145(a) is amended to read: 28  (a) The office shall 29  (1) provide technical assistance to the governor and the legislature in 30 identifying long range goals and objectives for the state and its political subdivisions; 31  (2) prepare and maintain a state comprehensive development plan;

01  (3) provide information and assistance to state agencies to aid in 02 governmental coordination and unity in the preparation of agency plans and programs; 03  (4) review planning within state government as may be necessary for 04 receipt of federal, state, or other funds; 05  (5) participate with other countries, provinces, states, or subdivisions 06 of them in international or interstate planning, and assist the state's local governments, 07 governmental conferences, and councils in planning and coordinating their activities; 08  (6) encourage educational and research programs that further state 09 planning and development, and provide administrative and technical services for them; 10  (7) publish [SUCH] statistical information or other documentary 11 material that [AS] will further the provisions and intent of AS 44.19.141 - 44.19.152; 12  (8) assist the governor and the Department of Community and 13 Economic Development [REGIONAL AFFAIRS] in coordinating state agency 14 activities that have an effect on the solution of local and regional development 15 problems; 16  (9) serve as a clearinghouse for information, data, and other materials 17 that may be helpful or necessary to federal, state, or local governmental agencies in 18 discharging their respective responsibilities or in obtaining federal or state financial or 19 technical assistance; 20  (10) review all proposals for the location of capital improvements by 21 any state agency and advise and make recommendations concerning location of these 22 capital improvements; 23  (11) render, on behalf of the state, all federal consistency 24 determinations and certifications authorized by 16 U.S.C. 1456 (Sec. 307, Coastal Zone 25 Management Act of 1972), and each conclusive state consistency determination when 26 a project requires a permit, lease, or authorization from two or more state resource 27 agencies. 28 * Sec. 51. AS 44.19.155(a) is amended to read: 29  (a) There is created in the Office of the Governor the Alaska Coastal Policy 30 Council. The council consists of the following: 31  (1) nine public members appointed by the governor from a list

01 comprised of at least three names from each region, nominated by the municipalities 02 of each region; the nominees shall be the mayor or member of the assembly or council 03 of a municipality; one public member shall be appointed from each of the following 04 general regions: 05  (A) northwest Alaska, including, generally, the area of the North 06 Slope Borough and the Northwest Arctic borough [REGIONAL 07 EDUCATIONAL ATTENDANCE AREA]; 08  (B) Bering Straits, including, generally, the area of the Bering 09 Straits regional educational attendance area; 10  (C) southwest Alaska, including, generally, the area within the 11 Lower Yukon, Lower Kuskokwim, and Southwest [, AND LAKE & 12 PENINSULA] regional educational attendance areas and the Lake and 13 Peninsula and Bristol Bay Boroughs [BOROUGH]; 14  (D) Kodiak-Aleutians, including the area of the Kodiak Island 15 and Aleutian East Borough [BOROUGH] and the Aleutian, Adak and Pribilof 16 regional educational attendance areas; 17  (E) Upper Cook Inlet, including the Municipality of Anchorage 18 and the Matanuska-Susitna Borough; 19  (F) Lower Cook Inlet, including, generally, the area within the 20 Kenai Peninsula Borough; 21  (G) Prince William Sound, including, generally, the area east 22 of the Kenai Peninsula Borough to 141 W. longitude; 23  (H) northern Southeast Alaska, including the area southeast of 24 141 W. longitude and north of 57 N. latitude, including the entirety of the City 25 and Borough of Sitka; and 26  (I) southern Southeast Alaska, including that portion of 27 southeastern Alaska not contained within the area described in (H) of this 28 paragraph; 29  (2) each of the following: 30  (A) the director of the office of management and budget; 31  (B) the commissioner of community [COMMERCE] and

01 economic development; 02  (C) [THE COMMISSIONER OF COMMUNITY AND 03 REGIONAL AFFAIRS; 04  (D)] the commissioner of environmental conservation; 05  (D) [(E)] the commissioner of fish and game; 06  (E) [(F)] the commissioner of natural resources; and 07  (F) [(G)] the commissioner of transportation and public 08 facilities. 09 * Sec. 52. AS 44.19.155(d) is amended to read: 10  (d) Each member of the council shall select one person to serve as a 11 permanent alternate at meetings of the council. If a member of the council is unable 12 to attend, the member shall advise the alternate who may attend and act in the place 13 of the member. The alternate for a public member appointed under (a)(1) of this 14 section shall, at the time of the alternate's designation and throughout the period of 15 service as a permanent alternate, be the mayor or member of the assembly or council 16 of a municipality within the region from which the permanent member is appointed. 17 The alternate for the director of the office of management and budget, serving under 18 (a)(2)(A) of this section, shall be the director's designee within that office. The 19 alternate for a designated member serving under (a)(2)(B) - (F) [(a)(2)(B) - (G)] of this 20 section shall be a deputy commissioner of the department or the director of a division 21 in the department. The names of alternates shall be filed with the council. 22 * Sec. 53. AS 44.27.020 is amended to read: 23  Sec. 44.27.020. Duties of department. The Department of Education and 24 Early Development shall 25  (1) administer the state's program of education at the elementary, 26 secondary, and adult levels, including, but not limited to, programs of vocational 27 education and training, [VOCATIONAL REHABILITATION,] library services, and 28 correspondence courses [, AND ADULT BASIC EDUCATION], but not including 29 degree programs of postsecondary education; 30  (2) administer the historical library; 31  (3) plan, finance, and operate related school and educational activities

01 and facilities ; and 02  (4) license and regulate child care facilities . 03 * Sec. 54. AS 44.31.020 is amended to read: 04  Sec. 44.31.020. Duties of department. The Department of Labor and 05 Workforce Development shall 06  (1) enforce the laws, and adopt regulations under them concerning 07 employer-employee relationships, including the safety, hours of work, wages, and 08 conditions of workers, including children; 09  (2) accumulate, analyze, and report labor statistics; 10  (3) operate systems of workers' compensation and unemployment 11 insurance; and 12  (4) gather data reflecting the cost of living in the various election 13 districts of the state upon request of the director of personnel under AS 39.27.030 ; and 14  (5) operate the federally funded employment and training programs 15 under 29 U.S.C. 1501 - 1792b (Job Training Partnership Act); 16  (6) administer the state's program of adult basic education . 17 * Sec. 55. AS 44.33.010 is amended to read: 18  Sec. 44.33.010. Commissioner of community [COMMERCE] and economic 19 development. The principal executive officer of the Department of Community 20 [COMMERCE] and Economic Development is the commissioner of community 21 [COMMERCE] and economic development. Except with respect to the 22 commissioner's membership on the board of directors of the Alaska Railroad 23 Corporation, whenever a statute provides that the commissioner is a member of 24 a board, council, or other similar entity, the commissioner may designate an 25 employee of the department to act in the commissioner's place. 26 * Sec. 56. AS 44.33.020 is repealed and reenacted to read: 27  Sec. 44.33.020. Duties of department. The Department of Community and 28 Economic Development shall 29  (1) advise and assist local governments; 30  (2) advise the governor and other commissioners on the delivery of 31 government services to rural areas, including services relating to public safety, justice,

01 economic development, natural resource management, education, and public health; 02  (3) make recommendations to the governor and other commissioners 03 about policy changes that would affect rural governments and rural affairs; 04  (4) serve as staff for the Local Boundary Commission; 05  (5) conduct studies and carry out experimental and pilot projects for the 06 purpose of developing solutions to community and regional problems; 07  (6) promote cooperative solutions to problems affecting more than one 08 community or region, including joint service agreements, regional compacts, and other 09 forms of cooperation; 10  (7) serve as a clearinghouse for information useful in solution of 11 community and regional problems, and channel to the appropriate authority requests 12 for information and services; 13  (8) advise and assist community and regional governments on matters 14 of finance, including but not limited to bond marketing and procurement of federal 15 funds; 16  (9) prepare suggested guidelines relating to the content of notice of 17 bond sale advertisements, prospectuses, and other bonding matters issued by local 18 governments; 19  (10) administer state funds appropriated for the benefit of unorganized 20 regions within the state, allowing for maximum participation by local advisory councils 21 and similar bodies; 22  (11) as assigned through a delegation by the governor, administer and 23 implement the state's role in the federal community development quota program 24 established under 16 U.S.C. 1855(i) or a successor federal program; the department 25 may adopt regulations under a delegation from the governor to implement duties under 26 this paragraph; 27  (12) carry out those administrative functions in the unorganized 28 borough that the legislature may prescribe; 29  (13) study existing and proposed laws and state activities that affect 30 community and regional affairs and submit to the governor recommended changes in 31 those laws and activities;

01  (14) coordinate activities of the state that affect community and 02 regional affairs; 03  (15) assist in the development of new communities and serve as the 04 agent of the state for purposes of participation in federal programs relating to new 05 communities; 06  (16) supervise planning, management, and other activities required for 07 local eligibility for financial aid under those federal and state programs that provide 08 assistance to community and regional governments; 09  (17) advise and assist municipalities on procedures of assessment, 10 valuation, and taxation, and notify municipalities of major errors in those procedures; 11  (18) apply for, receive, and use funds from federal and other sources, 12 public or private, for use in carrying out the powers and duties of the department; 13  (19) request and utilize the resources of other agencies of state 14 government in carrying out the purposes of this chapter to the extent such utilization 15 is more efficient than maintaining departmental staff, reimbursing the other agencies 16 when appropriate; 17  (20) administer state and, as appropriate, federal programs for revenue 18 sharing, grants, and other forms of financial assistance to community and regional 19 governments; 20  (21) administer the state programs relating to commerce, enforce the 21 laws relating to these programs, and adopt regulations under these laws; 22  (22) register corporations; 23  (23) collect corporation franchise taxes; 24  (24) enforce state laws regulating public utilities and other public 25 service enterprises, banking and securities, insurance, and other businesses and 26 enterprises touched with a public interest; 27  (25) make veterans' loans; 28  (26) furnish the budgeting, clerical, and administrative services for 29 regulatory agencies and professional and occupational licensing boards not otherwise 30 provided for; 31  (27) conduct studies, enter into contracts and agreements, and make

01 surveys relating to the economic development of the state and, when appropriate, 02 assemble, analyze, and disseminate the findings obtained; 03  (28) provide factual information and technical assistance for potential 04 industrial and commercial investors; 05  (29) receive gifts, grants, and other aid that facilitate the powers and 06 duties of the department from agencies and instrumentalities of the United States or 07 other public or private sources; 08  (30) establish and activate programs to achieve balanced economic 09 development in the state and advise the governor on economic development policy 10 matters; 11  (31) formulate a continuing program for basic economic development 12 and for the necessary promotion, planning and research that will advance the economic 13 development of the state; 14  (32) cooperate with private, governmental , and other public institutions 15 and agencies in the execution of economic development programs; 16  (33) review the programs and annual reports of other departments and 17 agencies as they are related to economic development and prepare an annual report on 18 the economic growth of the state; 19  (34) administer the economic development programs of the state; 20  (35) perform all other duties and powers necessary or proper in relation 21 to economic development and planning for the state; 22  (36) request tourism-related businesses in the state to provide data 23 regarding occupancy levels, traffic flow and gross receipts and to participate in visitor 24 surveys conducted by the department; data collected under this paragraph that discloses 25 the particulars of an individual business is not a matter of public record and shall be 26 kept confidential; however, this restriction does not prevent the department from using 27 the data to formulate tourism economic impact information including expenditure 28 patterns, tax receipts and fees, employment and income attributable to tourism, and 29 other information considered relevant to the planning, evaluation and policy direction 30 of tourism in the state; 31  (37) provide administrative and budgetary services to the real estate

01 commission under as 08.88 as requested by the commission; 02  (38) sell at cost, to the extent possible, publications and promotional 03 materials developed by the department; 04  (39) as delegated by the governor, administer under 16 U.S.C. 1856 the 05 internal waters foreign processing permit procedures and collect related fees; 06  (40) administer state laws relating to the issuance of business licenses; 07  (41) comply with AS 15.07.055 to serve as a voter registration agency 08 to the extent required by state and federal law, including 42 U.S.C. 1973gg (National 09 Voter Registration Act of 1993); 10  (42) foster the growth of international trade within the state and 11 administer Alaska foreign offices; 12  (43) carry out other functions and duties, consistent with law, necessary 13 or appropriate to accomplish the purpose of this chapter. 14 * Sec. 57. AS 44.33 is amended by adding new sections to article 1 to read: 15  Sec. 44.33.112. Fees for publications, research data, and other services. 16 The commissioner may establish by regulation and the department may charge 17 reasonable fees for department publications, research data, and other centralized 18 administrative services to cover the cost of reproduction, printing, mailing, distribution, 19 and other centralized administrative services. 20  Sec. 44.33.115. Exxon Valdez oil spill unincorporated rural community 21 grant fund. There is created in the department the Exxon Valdez oil spill 22 unincorporated rural community grant fund. The fund consists of money appropriated 23 to the fund from the Exxon Valdez oil spill restoration fund, the Alyeska settlement 24 fund, and other sources. Appropriations to the fund do not lapse unless otherwise 25 provided by the legislature in the bill making the appropriation to the fund. The 26 department may use the fund to make grants to unincorporated rural communities in 27 the area affected by the Exxon Valdez oil spill for capital projects for purposes of 28 restoring, replacing, or enhancing subsistence resources or services or other services 29 damaged or lost as the result of the Exxon Valdez oil spill. In this section, 30  (1) "Alyeska settlement fund" means the trust fund established in the 31 state treasury for the purpose of receiving, holding, and disbursing the settlement

01 proceeds received by the state under the Agreement and Consent Decree in re: The 02 Exxon Valdez, United States District Court, District of Alaska, Case No. A92-175 03 Civil, decree entered November 25, 1992; 04  (2) "Exxon Valdez oil spill restoration fund" means the fund established 05 by the Department of Revenue to implement the judgment entered by the United States 06 District Court for Alaska in the criminal case United States of America v. Exxon 07 Shipping Company and Exxon Corporation, No. A90-015 CR. 08  Sec. 44.33.118. Definitions. In AS 44.33.010 - 44.33.118, 09  (1) "commissioner" means the commissioner of community and 10 economic development; 11  (2) "department" means the Department of Community and Economic 12 Development. 13 * Sec. 58. AS 44.33.120(b) is amended to read: 14  (b) The Department of Community and Economic Development [ALASKA 15 DIVISION OF TOURISM] shall 16  (1) cooperate with the tourism marketing council and organizations in 17 the private sector for the promotion and development of tourism and conventions into 18 and within the state; 19  (2) coordinate with municipal, state, and federal agencies for the 20 development and promotion of tourism resources and conventions in the state; 21  (3) review and approve the procurement documents and procedures of 22 the tourism marketing council to ensure compliance with applicable laws and 23 regulations; 24  (4) promote and develop the state's tourist and convention industry by 25 any of the following: 26  (A) publicizing state attractions through such means as display 27 advertising in magazines and newspapers, advertising on radio and television 28 or other advertising media, publishing pamphlets, brochures and other graphic 29 and pictorial materials, or [BY] aiding and assisting representatives of the 30 media, to ensure greater coverage of the visitor attractions in the state; 31  (B) participation in travel shows;

01  (C) increasing the awareness of the citizens of the state at the 02 statewide, regional, and community level of the economic importance of the 03 visitor industry; 04  (D) assisting potential investors in creating new visitor facilities; 05  (E) administering programs of the state in which the state 06 provides matching funds for municipalities of the state or nonprofit 07 organizations that undertake the promotion of visitor travel to and the 08 development of visitor amenities in the state; 09  (F) administering visitor information centers; 10  (G) conducting research to evaluate the effectiveness of the 11 tourism marketing council's marketing programs; 12  (H) analyzing the effect on the state's visitor industry of state 13 land and resource development projects; 14  (I) organizing, administering, and evaluating demonstration 15 projects for the promotion of the state's visitor industry and the development 16 of new tourism destination markets; and 17  (J) administering grants under AS 44.33.135. 18 * Sec. 59. AS 44.33.135(a) is amended to read: 19  (a) A municipality, a nonprofit corporation formed under AS 10.20, or a bona 20 fide nonprofit civic, fraternal, or service organization may receive, as a grant, matching 21 money from the state for up to 50 percent of the costs of a program or project that the 22 commissioner of community and economic development [DIRECTOR OF 23 TOURISM] determines is consistent with the purposes of AS 44.33.119 and is likely 24 to promote or develop visitor travel, including 25  (1) the promotion of conventions; 26  (2) the construction, improvement, or operation of visitor destination 27 facilities and tourist attractions; and 28  (3) the development and preservation of attractions of historical, 29 contemporary, recreational, or cultural interest. 30 * Sec. 60. AS 44.33.705(a) is amended to read: 31  (a) Unless the commissioner contracts with a qualified trade association under

01 (b) of this section, the governing body of the council is a board of directors consisting 02 of [THE DIRECTOR OF TOURISM,] the commissioner of community 03 [COMMERCE] and economic development [,] and the commissioners 04 [COMMISSIONER] of two other [ANOTHER] principal executive departments 05 [DEPARTMENT] designated by the governor. 06 * Sec. 61. AS 44.33.705(c) is amended to read: 07  (c) If the commissioner contracts with a qualified trade association under (b) 08 of this section, the governing body of the council is a board of directors consisting of 09 21 members and subject to the following provisions: 10  (1) a board member shall 11  (A) be involved in a visitor or recreation industry business; 12  (B) have training in a field such as marketing; 13  (C) be an officer or a senior staff member of a local 14 government or nonprofit enterprise established to promote the visitor industry; 15 or 16  (D) have business or government experience that would 17 materially enhance the member's ability to contribute to the planning, 18 execution, or evaluation of a visitor industry promotional marketing campaign; 19  (2) the contract shall provide that the trade association may select up 20 to 10 board members; the governor may remove a member of the board selected under 21 this paragraph on the delivery by the governor to the board of a written statement 22 explaining the reasons for the removal; 23  (3) the commissioner of community and economic development 24 [DIRECTOR OF TOURISM] is a member of the board; the governor shall appoint 10 25 other board members; each board member appointed by the governor serves at the 26 pleasure of the governor; in making appointments to the board under this paragraph, 27 the governor shall ensure that the board, including members selected under (2) of this 28 subsection, is broadly representative of the different regions of the state and the 29 various sectors of the visitor industry; 30  (4) eleven members of the board constitute a quorum for the transaction 31 of business and the exercise of the powers and duties of the board, and any action by

01 the board requires 11 affirmative votes; 02  (5) the governor shall appoint a member of the board to serve as 03 presiding officer of the board; the board shall elect other necessary officers from 04 among its members annually; 05  (6) a board member may not participate or vote by proxy; 06  (7) the board shall meet at least four times a year at the call of the 07 presiding officer or upon the written request of seven members of the board; 08  (8) the members of the board appointed by the governor serve 09 staggered three-year terms, subject to continuation of the contract, and may be 10 reappointed; 11  (9) a person appointed to fill a vacancy on the board holds office for 12 the balance of the term of the person's predecessor; 13  (10) board members receive no salary for serving in that position, but 14 are entitled to per diem and travel expenses under AS 39.20.180, except as provided 15 in AS 44.33.733; the contract must provide that the trade association will reimburse 16 the council for per diem and travel expenses paid to those board members appointed 17 by the trade association; reimbursement under this paragraph does not qualify as a part 18 of the association's required contribution under (b) of this section; 19  (11) notwithstanding AS 39.52, a board member who is a member of 20 the qualified trade association that has contracted with the department under (b) of this 21 section may vote or take action on a matter that might benefit the trade association or 22 members of the trade association, including the issuance of contracts or the granting 23 of rights to the trade association, but shall disclose the person's membership in the 24 trade association before the vote or action; this paragraph may not be interpreted to 25 allow a board member or an immediate family member of a board member to receive, 26 apply for, be a party to, have a personal or financial interest in, or attempt to acquire 27 a grant or contract made by the council; in this paragraph, "immediate family member" 28 has the meaning given in AS 39.52.960. 29 * Sec. 62. AS 44.33.720(a) is amended to read: 30  (a) The council shall 31  (1) conduct a tourism marketing program designed to accomplish the

01 purposes of AS 44.33.700 - 44.33.735; the marketing program must include promotion 02 of the state as a destination and promotion of all forms of travel to the state, including 03 travel by air, highway, and water; 04  (2) prepare and implement plans for the promotion of Alaska tourism, 05 including necessary research; 06  (3) submit an annual report to the governor describing the activities of 07 the council and notify the legislature that the report is available; 08  (4) make available to all interested persons, including tourism 09 businesses, a quarterly report of the council's actions and activities; 10  (5) annually submit a proposed operating budget to the commissioner, 11 to be used by the Department of Community [COMMERCE] and Economic 12 Development to prepare and submit the operating budget of the council under 13 AS 44.33.725; 14  (6) provide advice, on the request of the commissioner of community 15 and economic development [DIRECTOR OF TOURISM], on the programs of the 16 Department of Community and Economic Development that relate to tourism 17 [DIVISION]; 18  (7) prepare a report by the 10th day of each regular session of the 19 legislature, describing how the contractual money was spent in the first half of the year 20 and explaining the plan for expenditures during the second half of the year; the council 21 shall notify the legislature that the report is available; 22  (8) consider methods to fund tourism marketing using both public and 23 private assets; and 24  (9) consider methods of providing for the financial self-sufficiency of 25 the council. 26 * Sec. 63. AS 44.33 is amended by adding new sections to read: 27 Article 7A. Rural Development. 28  Sec. 44.33.740. Powers and duties. To promote development of rural areas 29 of the state, the department is authorized to 30  (1) investigate social and economic conditions of rural areas to 31 determine the need to expand economic opportunities and improve living conditions;

01  (2) formulate a coordinated program to broaden and diversify the 02 economic base of rural areas; 03  (3) coordinate administration of emergency relief, surplus food 04 distribution, or other public assistance programs, except the regular relief and 05 assistance programs of the federal government in rural areas; 06  (4) formulate and conduct a program of construction of basic facilities 07 to improve health, welfare, and economic security and provide employment and 08 income in the rural areas; 09  (5) promote training and educational programs designed to expand 10 employment opportunities for residents of rural areas; 11  (6) enter into agreements with other state agencies and departments to 12 provide for the distribution in rural communities of surplus electrical power from state- 13 owned power sources located in those communities and to expend funds for this purpose; 14  (7) make grants to communities for bulk fuel storage facilities; 15  (8) cooperate with the Department of Environmental Conservation and 16 other agencies to provide technical assistance to communities in the installation, 17 operation, and management of bulk fuel storage facilities. 18  Sec. 44.33.745. Limitations. A program of the department under 19 AS 44.33.740 in a rural area may not exceed $100,000 in cost a year. 20  Sec. 44.33.750. Bulk fuel storage facilities grant fund. (a) There is 21 established in the department the bulk fuel storage facilities grant fund. Grants may 22 be made by the department from this fund to a community to acquire and install 23 community bulk storage facilities. 24  (b) Grants made under this section for the acquisition and installation of a bulk 25 fuel storage facility may not exceed $100,000 per community. 26  (c) If the governing body of two or more communities determine that their fuel 27 requirements may be served by a single bulk fuel storage facility, the communities 28 may jointly apply for grants to acquire and install a single bulk fuel storage facility. 29 When communities apply jointly under this subsection, the limitation in (b) of this 30 section is multiplied by the number of communities that submit the joint application. 31  (d) Before a grant is made under this section, the city council or, if the

01 community is not incorporated, a reasonable representative body in the community 02 shall agree in writing to maintain and operate the bulk storage facility to be 03 constructed with the proceeds of the grant. 04  Sec. 44.33.755. Land conveyed in trust. (a) The commissioner 05  (1) shall accept, administer, and dispose of land conveyed to the state 06 in trust by village corporations under 43 U.S.C. 1613(c)(3) (Sec. 14(c)(3) of the Alaska 07 Native Claims Settlement Act) for the purposes specified in that section; 08  (2) may, with the concurrence of an appropriate village entity 09 recognized by the commissioner under (b) of this section or, in the absence of an 10 appropriate village entity, under procedures prescribed by regulations of the 11 commissioner, accept, administer, and dispose of land conveyed in trust by a state or 12 federal agency and by the dissolution of a municipality under AS 29.06.450 - 13 29.06.530. 14  (b) Transfer of land by sale, lease, right-of-way, easement, or permit, including 15 transfer of surface resources, may be made by the commissioner only after approval 16 of an appropriate village entity such as the traditional council, a village meeting, or a 17 village referendum. This approval shall be by resolution filed with the department. 18  (c) Within one complete state fiscal year after the incorporation of a 19 municipality in the village or of a municipality that includes all or part of the village, 20 land acquired under this section shall be conveyed without cost to the municipality, 21 and the municipality shall succeed to all the entrusted interest in the land. 22  (d) Separate accounts shall be maintained in the name of each village for the 23 land, including the revenue from the land, acquired from each village corporation 24 under this section. 25  (e) Upon the conveyance of land to a municipality under this section, the 26 commissioner shall account to the municipality for all profits including interest 27 generated from the land. The municipality may then request the governor to submit 28 a request to the legislature for an appropriation for the amount due the municipality. 29  (f) Title to or an interest in land acquired by the department under this section 30 may not be acquired by adverse possession or prescription. Notwithstanding (a) - (e) 31 of this section, on the dissolution of a municipality under AS 29.06.450 - 29.06.530,

01 unimproved land that was owned by the municipality on the date of its dissolution and 02 received by the municipality from the state under a municipal land grant entitlement 03 program is transferred to the commissioner of natural resources. 04  (g) For the purposes of this section, "municipality" includes only first and 05 second class cities incorporated under the laws of the state. 06  Sec. 44.33.760. Loan information officers. (a) The department may provide 07 itinerant loan information officers to serve persons who reside outside the major 08 population centers of the state. 09  (b) The loan information officers shall be trained, to the extent that the 10 department considers necessary, in a program administered by the department and 11 approved by the Alaska Housing Finance Corporation, the Alaska Industrial 12 Development and Export Authority, and the principal departments of the executive 13 branch that administer loan programs. 14  (c) A majority of the loan information officers shall be persons who are 15 conversant in Alaska Native languages that are spoken by a significant number of 16 Alaska Natives. The department shall provide brochures and other printed materials, 17 written in easily understandable English and in the Alaska Native languages that are 18 spoken by a significant number of Alaska Natives, for distribution by the loan 19 information officers. The brochures and printed materials must explain the purposes 20 of the various state loan programs, the minimum qualifications under the programs, the 21 method for obtaining assistance in the completion of applications for the programs, and 22 other information the department determines will improve the access of persons in 23 rural areas to the state's loan programs. 24  (d) The department shall coordinate its efforts under this section with local 25 financial institutions and community groups to determine the proper itinerary and travel 26 schedule of the loan information officers and to provide adequate notice to persons in 27 rural areas of the itinerary and travel schedule of the loan information officers. 28  (e) The department shall assign the loan information officers to rural areas 29 based on the current and potential future demands for loans in those areas and shall 30 establish offices for the loan information officers in rural areas if the department 31 determines it is necessary to provide familiarity with the area served by the loan

01 information officers and to reduce travel costs. 02  Sec. 44.33.765. Rural development initiative fund. (a) The rural 03 development initiative fund is created in the department. Unless provided otherwise 04 in the appropriation act, an appropriation to the fund is retained in the fund for use 05 under AS 44.33.765 - 44.33.775 and does not lapse at the end of a fiscal year. Each 06 year the commissioner shall request an appropriation to the fund of interest and other 07 income earned on loans or investments of the fund. Money in the fund may be 08 appropriated for costs of administering AS 44.33.765 - 44.33.775. 09  (b) The commissioner may place money from the fund into a special reserve 10 account as necessary. The commissioner may use money in the account to protect the 11 state's security interest in collateral on loans made from the fund, to protect the state's 12 interests in investments made from the fund, or to defray expenses incurred during 13 foreclosure or other legal proceedings involving loans or investments made from the 14 fund. 15  (c) The commissioner may use money from the fund to provide for loan 16 information officers under AS 44.33.760. 17  Sec. 44.33.770. Rural development loans. (a) The department may use 18 money from the rural development initiative fund to make a loan of up to $100,000 19 to a person, or a loan of up to $200,000 to two or more persons, to be used for 20 working capital, equipment, construction, or other commercial purposes by a business 21 located in a community with a population of 5,000 or less. A person who has received 22 a loan under this subsection may not be granted another loan until after the original 23 loan is entirely repaid. 24  (b) The department shall require collateral for each loan made under this 25 section and shall require that a reasonable amount of money from other nonstate 26 sources be committed for use on any project or enterprise for which money from a 27 loan will be used. The department by regulation may establish other conditions for 28 loans. The department shall by regulation establish rates of interest that are not less 29 than six percent a year and terms of repayment for loans made under this section. 30  Sec. 44.33.775. Disposal of property acquired by default or foreclosure. 31 The department shall dispose of property acquired through default or foreclosure of a

01 loan made from the rural development initiative fund. Disposal shall be made in a 02 manner that serves the best interests of the state, and may include the amortization of 03 payments over a period of years. The commissioner shall request an appropriation to 04 the fund of proceeds from disposal of property under this section. 05  Sec. 44.33.780. Definitions. In AS 44.33.740 - 44.33.780, 06  (1) "commissioner" means the commissioner of community and 07 economic development; 08  (2) "department" means the Department of Community and Economic 09 Development. 10 Article 7B. Planning Assistance. 11  Sec. 44.33.781. Planning assistance for development and maintenance of 12 district coastal management programs. (a) The department shall conduct a program 13 of research, training, and technical assistance to coastal resource districts necessary for 14 the development and implementation of district coastal management programs under 15 AS 46.40. The technical assistance shall include the direct granting to the coastal 16 resource districts of a portion of any funds received by the state from the federal 17 coastal zone management program, in amounts to be individually determined for each 18 coastal resource district by the commissioner of community and economic 19 development. State agencies shall assist the department in carrying out the purposes 20 of this section. 21  Sec. 44.33.782. Planning assistance to platting authorities. To facilitate 22 planning in municipalities that exercise planning and zoning authority, the department 23 may provide planning assistance, including but not limited to surveys, land use studies, 24 urban renewal plans, technical services, model acts that include regulations designed 25 to encourage development and use of energy systems not dependent on oil or gas, and 26 other planning work to a city, borough, or other platting authority. In an area under 27 the jurisdiction, for planning purposes, of a city, borough, or other platting authority, 28 the department may not perform the planning work except at the request or with the 29 consent of the local authority. 30  Sec. 44.33.784. Assistance by cities and platting authorities. A city or 31 platting authority may make funds under its control available to the department for the

01 purposes of obtaining planning work or planning assistance, or both, for its area. The 02 department may contract for, accept, and expend the funds for urban planning for the 03 local jurisdiction. 04  Sec. 44.33.786. Land use planning and state facility procurement plan. 05 The department shall make recommendations to the Department of Transportation and 06 Public Facilities and to appropriate program agencies concerning the effect upon the 07 comprehensive plan or other land use plans or proposals of municipalities and 08 unincorporated communities with respect to the facility procurement plan required to 09 be prepared in accordance with AS 35.10.170. 10  Sec. 44.33.788. Other planning powers. The department may accept and 11 expend grants from the federal government and other public or private sources, may 12 contract with reference to them, and may enter into contracts and exercise all other 13 powers necessary to carry out AS 44.33.781 - 44.33.788. 14  Sec. 44.33.790. Definition. In AS 44.33.782 - 44.33.790, "department" means 15 the Department of Community and Economic Development. 16 * Sec. 64. AS 44.33 is amended by adding new sections to read: 17 Article 8A. Local Boundary Commission. 18  Sec. 44.33.810. Local Boundary Commission. There is in the Department 19 of Community and Economic Development a Local Boundary Commission. The Local 20 Boundary Commission consists of five members appointed by the governor for 21 overlapping five-year terms. One member shall be appointed from each of the four 22 judicial districts described in AS 22.10.010 and one member shall be appointed from 23 the state at large. The member appointed from the state at large is the chair of the 24 commission. 25  Sec. 44.33.812. Powers and duties. (a) The Local Boundary Commission 26 shall 27  (1) make studies of local government boundary problems; 28  (2) adopt regulations providing standards and procedures for municipal 29 incorporation, annexation, detachment, merger, consolidation, reclassification, and 30 dissolution; 31  (3) consider a local government boundary change requested of it by the

01 legislature, the commissioner of community and economic development, or a political 02 subdivision of the state; and 03  (4) develop standards and procedures for the extension of services and 04 ordinances of incorporated cities into contiguous areas for limited purposes upon 05 majority approval of the voters of the contiguous area to be annexed and prepare 06 transition schedules and prorated tax mill levies as well as standards for participation 07 by voters of these contiguous areas in the affairs of the incorporated cities furnishing 08 services. 09  (b) The Local Boundary Commission may 10  (1) conduct meetings and hearings to consider local government 11 boundary changes and other matters related to local government boundary changes, 12 including extensions of services by incorporated cities into contiguous areas and 13 matters related to extension of services; and 14  (2) present to the legislature during the first 10 days of a regular 15 session proposed local government boundary changes, including gradual extension of 16 services of incorporated cities into contiguous areas upon a majority approval of the 17 voters of the contiguous area to be annexed and transition schedules providing for total 18 assimilation of the contiguous area and its full participation in the affairs of the 19 incorporated city within a period not to exceed five years. 20  Sec. 44.33.814. Meetings and hearings. The chair of the commission or the 21 commissioner of community and economic development with the consent of the chair 22 may call a meeting or hearing of the Local Boundary Commission. All meetings and 23 hearings shall be public. 24  Sec. 44.33.816. Minutes and records. The Local Boundary Commission shall 25 keep minutes of all meetings and hearings. If the proceedings are transcribed, minutes 26 shall be made from the transcription. The minutes are a public record. All votes taken 27 by the commission shall be entered in the minutes. 28  Sec. 44.33.818. Notice of public hearings. Public notice of a hearing of the 29 Local Boundary Commission shall be given in the area in which the hearing is to be 30 held at least 15 days before the date of the hearing. The notice of the hearing must 31 include the time, date, place, and subject of the hearing. The commissioner of

01 community and economic development shall give notice of the hearing at least three 02 times in the press, through other news media, or by posting in a public place, 03 whichever is most feasible. 04  Sec. 44.33.820. Quorum. Three members of the commission constitute a 05 quorum for the conduct of business at a meeting. Two members constitute a quorum 06 for the conduct of business at a hearing. 07  Sec. 44.33.822. Boundary change. A majority of the membership of the 08 Local Boundary Commission must vote in favor of a proposed boundary change before 09 it may be presented to the legislature. 10  Sec. 44.33.824. Expenses. Members of the Local Boundary Commission 11 receive no pay but are entitled to the travel expenses and per diem authorized for 12 members of boards and commissions under AS 39.20.180. 13  Sec. 44.33.826. Hearings on boundary changes. A local government 14 boundary change may not be proposed to the legislature unless a hearing on the change 15 has been held in or in the near vicinity of the area affected by the change. 16  Sec. 44.33.828. When boundary change takes effect. When a local 17 government boundary change is proposed to the legislature during the first 10 days of 18 any regular session, the change becomes effective 45 days after presentation or at the 19 end of the session, whichever is earlier, unless disapproved by a resolution concurred 20 in by a majority of the members of each house. 21 Article 8B. Borough Feasibility Studies. 22  Sec. 44.33.840. Borough feasibility studies. The commissioner may contract 23 for studies of the feasibility of establishing boroughs in the unorganized borough. A 24 study may be conducted under this section only if 25  (1) appropriations are available for that purpose; and 26  (2) the study is requested by a person residing in the area to be studied 27 or by a city located in the area to be studied. 28  Sec. 44.33.842. Requests for studies. A request for a study of the feasibility 29 of establishing a borough in the unorganized borough shall be submitted to the 30 commissioner in writing and must include 31  (1) a description of the boundaries of the area of the proposed study;

01 and 02  (2) an indication of local interest in the proposed study consisting of 03 either 04  (A) a petition requesting the study containing the signatures and 05 addresses of five percent of the voters residing in the area of the proposed 06 study based on the number of voters who voted in the area in the last statewide 07 election; or 08  (B) resolutions requesting the study adopted by the governing 09 bodies of at least five percent of the cities within the area of the proposed 10 study. 11  Sec. 44.33.844. Boundaries. The boundaries of an area studied shall conform 12 to the boundaries indicated in the request for the study under AS 44.33.842 unless the 13 commissioner, after a public hearing held in the area of the proposed study, determines 14 that the boundaries should be altered. In determining the boundaries of an area to be 15 studied, the commissioner shall consider 16  (1) the standards applicable to the incorporation of boroughs under 17 AS 29.05.031; 18  (2) boundaries of regional corporations established under 43 U.S.C. 19 1606; 20  (3) census divisions of the state used for the 1980 census; 21  (4) boundaries of the regional educational attendance areas established 22 under AS 14.08.031; and 23  (5) boundaries of coastal resource service areas organized under 24 AS 46.40.110 - 46.40.210. 25  Sec. 44.33.846. Contracts. (a) The commissioner shall contract for a study 26 of the feasibility of establishing a borough in the unorganized borough by following 27 the procedures under AS 36.30 (State Procurement Code). The commissioner shall 28 include terms in the contract that provide for 29  (1) public participation in the preparation of the study; 30  (2) completion of the study not later than June 30 of the third year after 31 the year the contract is executed.

01  (b) A study under this section must include 02  (1) a recommendation for or against incorporation of a borough 03 containing all or part of the area studied; 04  (2) an evaluation of the economic development potential of the area 05 studied; 06  (3) an evaluation of capital facility needs of the area studied; 07  (4) an evaluation of demographic, social, and environmental factors 08 affecting the area studied; 09  (5) an evaluation of the relationships among regional educational 10 attendance areas, coastal resource service areas, and other regional entities responsible 11 for providing services in the area studied; 12  (6) an evaluation of the relationships between the existing cities within 13 the area studied and regional entities responsible for providing services in the area; and 14  (7) specific recommendations for 15  (A) organization of a home rule or general law borough 16 government if one is recommended; 17  (B) changes in organization of cities in the area studied; or 18  (C) the improvement of the delivery of services to the public 19 by the state in the area studied. 20  Sec. 44.33.849. Definition. In AS 44.33.840 - 44.33.849, "commissioner" 21 means the commissioner of community and economic development. 22 Article 8C. Alaska Regional Economic Assistance Program. 23  Sec. 44.33.895. Alaska regional economic assistance program. (a) The 24 department shall 25  (1) encourage the formation of regional development organizations by 26 providing assistance in forming organizations to interested individuals, including 27 information on how to qualify and apply for regional development grants and federal 28 funding under 42 U.S.C. 3121 - 3246 (Public Works and Economic Development Act 29 of 1965), as amended; 30  (2) assist an interested individual in establishing boundaries for a 31 proposed organization to ensure that the region

01  (A) is of sufficient geographic size and contains a large enough 02 population to form an economically viable unit with shared interests, resources, 03 traditions, and goals; 04  (B) contains at least one municipality that serves as a regional 05 center; and 06  (C) contains the entire area of each municipality included in the 07 region; 08  (3) gather information about regional economic issues, international 09 trade, and tourism from organizations; 10  (4) serve as liaison between organizations and other state agencies and 11 encourage other agencies to make resources available to help accomplish goals of the 12 organizations; 13  (5) assist each organization to 14  (A) provide services designed to encourage economic 15 development to local communities and businesses; 16  (B) collect and distribute economic information relevant to the 17 region; 18  (C) participate in state marketing campaigns and join state trade 19 missions that are relevant to the region; and 20  (D) develop and implement strategies to attract new industry, 21 expand international trade opportunities, and encourage tourism within the 22 region. 23  (b) Subject to (c) of this section, the department may make regional 24 development grants to organizations for projects the department determines will be of 25 value in encouraging economic development. During a fiscal year, the department may 26 make no more than 15 grants and may only make grants to one organization from a 27 particular region. An organization that is designated an economic development district 28 under 42 U.S.C. 3171 qualifies for grants under this subsection. The department shall 29 by regulation adopt procedures for applying for regional development grants, including 30 application deadlines. The department may by regulation establish additional grant 31 eligibility requirements.

01  (c) To qualify for a grant, a regional development organization must match the 02 grant by providing an amount of money from nonstate sources. The department shall 03 establish by regulation a formula that determines the amount of the match required 04 under this subsection based on the capability of each organization to generate money 05 from nonstate sources. The amount of match required may not exceed the amount of 06 grant money and may not be less than 20 percent of the grant. The total amount of 07 grant money provided to an organization during a fiscal year may not exceed 08 $100,000. 09  (d) There is established in the department the regional development fund 10 consisting of appropriations to the fund. Money from the fund may be used only for 11 regional development grants. 12  (e) In this section, 13  (1) "department" means the Department of Community and Economic 14 Development; 15  (2) "regional development organization" or "organization" means a 16 nonprofit organization or nonprofit corporation formed to encourage economic 17 development within a particular region of the state that includes the entire area of each 18 municipality within that region and that has a board of directors that represents the 19 region's economic, political, and social interests. 20 * Sec. 65. AS 44.62.330(a)(24) is amended to read: 21  (24) Department of Health and Social Services and Department of 22 Education and Early Development , relating to denial, involuntary conditioning, or 23 revocation of a license issued under AS 14.37 or AS 47.35, or suspension of 24 operations or admissions or assessment of an administrative fine under AS 14.37 or 25 AS 47.35; 26 * Sec. 66. AS 44.83.070 is amended to read: 27  Sec. 44.83.070. Purpose of the authority. The purpose of the authority is to 28 promote, develop, and advance the general prosperity and economic welfare of the 29 people of the state by providing a means of financing and operating power projects and 30 facilities that recover and use waste energy and by carrying out the powers and 31 duties assigned to it under AS 42.45 .

01 * Sec. 67. AS 44.83.080 is amended to read: 02  Sec. 44.83.080. Powers of the authority. In furtherance of its corporate 03 purposes, the authority has the following powers in addition to its other powers: 04  (1) to sue and be sued; 05  (2) to have a seal and alter it at pleasure; 06  (3) to make and alter bylaws for its organization and internal 07 management; 08  (4) to adopt regulations governing the exercise of its corporate powers; 09  (5) to improve, equip, operate, and maintain power projects; 10  (6) to issue bonds to carry out any of its corporate purposes and 11 powers, including the establishment or increase of reserves to secure or to pay the 12 bonds or interest on them, and the payment of all other costs or expenses of the 13 authority incident to and necessary or convenient to carry out its corporate purposes 14 and powers; 15  (7) to sell, lease as lessor or lessee, exchange, donate, convey, or 16 encumber in any manner by mortgage or by creation of any other security interest, real 17 or personal property owned by it, or in which it has an interest, when, in the judgment 18 of the authority, the action is in furtherance of its corporate purposes; 19  (8) to accept gifts, grants, or loans from, and enter into contracts or 20 other transactions regarding them, with any person; 21  (9) to deposit or invest its funds, subject to agreements with 22 bondholders; 23  (10) to enter into contracts with the United States or any person and, 24 subject to the laws of the United States and subject to concurrence of the legislature, 25 with a foreign country or its agencies, for the financing, operation, and maintenance 26 of all or any part of a power project, either inside or outside the state, and for the sale 27 or transmission of power from a project or any right to the capacity of it or for the 28 security of any bonds of the authority issued or to be issued for the project; 29  (11) to enter into contracts with any person and with the United States, 30 and, subject to the laws of the United States and subject to the concurrence of the 31 legislature, with a foreign country or its agencies for the purchase, sale, exchange,

01 transmission, or use of power from a project, or any right to the capacity of it; 02  (12) to apply to the appropriate agencies of the state, the United States, 03 and to a foreign country and any other proper agency for the permits, licenses, or 04 approvals as may be necessary, and to maintain and operate power projects in 05 accordance with the licenses or permits, and to obtain, hold, and use the licenses and 06 permits in the same manner as any other person or operating unit; 07  (13) to enter into contracts or agreements with respect to the exercise 08 of any of its powers, and do all things necessary or convenient to carry out its 09 corporate purposes and exercise the powers granted in this chapter; 10  (14) to recommend to the legislature 11  (A) the pledge of the credit of the state to guarantee repayment 12 of all or any portion of revenue bonds issued to assist in construction of power 13 projects; 14  (B) an appropriation from the general fund 15  (i) for debt service on bonds or other project purposes; 16 or 17  (ii) to reduce the amount of debt financing for the 18 project ; 19  (15) to carry out the powers and duties assigned to it under 20 AS 42.45 . 21 * Sec. 68. AS 46.03.900(33) is amended to read: 22  (33) "village" means a place within the unorganized borough or within 23 a borough as to a power, function, or service that is not exercised or provided by the 24 borough on an areawide or nonareawide basis that 25  (A) has irrevocably waived, in a form approved by the 26 Department of Law, any claim of sovereign immunity that might arise under 27 this chapter; and 28  (B) has 29  (i) a council organized under 25 U.S.C. 476 (sec. 16 of 30 the Indian Reorganization Act); 31  (ii) a traditional village council recognized by the United

01 States as eligible for federal aid to Indians; or 02  (iii) a council recognized by the commissioner of 03 community and economic development [REGIONAL AFFAIRS] under 04 regulations adopted by the Department of Community and Economic 05 Development [REGIONAL AFFAIRS] to determine and give official 06 recognition of village entities under AS 44.33.755(b) [AS 44.47.150(b)]; 07 * Sec. 69. AS 46.04.900(22) is amended to read: 08  (22) "village" means a place within the unorganized borough or within 09 a borough as to a power, function, or service that is not exercised or provided by the 10 borough on an areawide or nonareawide basis that 11  (A) has irrevocably waived, in a form approved by the 12 Department of Law, any claim of sovereign immunity that might arise under 13 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. 70. AS 46.08.900(16) is amended to read: 25  (16) "village" means a place within the unorganized borough or within 26 a borough if the power, function, or service for which a grant application under 27 AS 29.60.510 is submitted is not exercised or provided by the borough on an areawide 28 or nonareawide basis at the time the grant application is submitted that 29  (A) has irrevocably waived, in a form approved by the 30 Department of Law, any claim of sovereign immunity that might arise in 31 connection with the use of grant money under this chapter; and

01  (B) has 02  (i) a council organized under 25 U.S.C. 476 (sec. 16 of 03 the Indian Reorganization Act); 04  (ii) a traditional village council recognized by the United 05 States as eligible for federal aid to Indians; or 06  (iii) a council recognized by the commissioner of 07 community and economic development [REGIONAL AFFAIRS] under 08 regulations adopted by the Department of Community and Economic 09 Development [REGIONAL AFFAIRS] to determine and give official 10 recognition of village entities under AS 44.33.755(b) [AS 44.47.150(b)]. 11 * Sec. 71. AS 46.40.170(b) is amended to read: 12  (b) At the request of the council, the Department of Community and Economic 13 Development [REGIONAL AFFAIRS] shall complete the district coastal management 14 program in accordance with this chapter and the guidelines and standards adopted by 15 the council for a coastal resource service area that [WHICH] has been organized but 16 that [WHICH] has failed to make substantial progress in the preparation of an 17 approvable district coastal management program within 18 months of certification of 18 the results of an organization election or that [WHICH] has not submitted for approval 19 to the council a program within 30 months of certification of the results of its 20 organization election. Preparation of the program shall be conducted in consultation 21 with the coastal resource service area and shall, to the maximum extent consistent with 22 this chapter, reflect the expressed concerns of the residents of the service area. 23 * Sec. 72. AS 46.40.190(a) is amended to read: 24  (a) A city within the coastal area that [WHICH] is not part of a coastal 25 resource service area shall be included for purposes of this chapter within an adjacent 26 coastal resource service area unless its governing body, by resolution adopted by a 27 majority of its membership, chooses to exclude the city from an adjacent coastal 28 resource service area and a copy of the resolution is filed with the commissioner of 29 community and economic development [REGIONAL AFFAIRS]. 30 * Sec. 73. AS 46.40.210(2) is amended to read: 31  (2) "coastal resource district" means each of the following that

01 [WHICH] contains a portion of the coastal area of the state: 02  (A) unified municipalities; 03  (B) organized boroughs of any class that [WHICH] exercise 04 planning and zoning authority; 05  (C) home rule and first class cities of the unorganized borough 06 or within boroughs that [WHICH] do not exercise planning and zoning 07 authority; 08  (D) second class cities of the unorganized borough, or within 09 boroughs that [WHICH] do not exercise planning and zoning authority, that 10 [WHICH] have established a planning commission, and that [WHICH], in the 11 opinion of the commissioner of community and economic development 12 [REGIONAL AFFAIRS], have the capability of preparing and implementing 13 a comprehensive district coastal management program under AS 46.40.030; 14  (E) coastal resource service areas established and organized 15 under AS 29.03.020 and AS 46.40.110 - 46.40.180; 16 * Sec. 74. AS 47.05.030(a) is amended to read: 17  (a) Except as provided in (b) of this section and for purposes directly 18 connected with the administration of general assistance, adult public assistance, the day 19 care assistance program authorized under AS 14.38.100 - 14.38.199 [AS 44.47.250 - 20 44.47.310], or the Alaska temporary assistance program, and in accordance with the 21 regulations of the department, a person may not solicit, disclose, receive, make use of, 22 or authorize, knowingly permit, participate in, or acquiesce in the use of, a list of or 23 names of, or information concerning, persons applying for or receiving the assistance 24 directly or indirectly derived from the records, papers, files, or communications of the 25 department or subdivisions or agencies of the department, or acquired in the course of 26 the performance of official duties. 27 * Sec. 75. AS 47.27.060 is amended to read: 28  Sec. 47.27.060. Job development. The department may establish cooperative 29 agreements with the Department of Labor and Workforce Development , 30 [DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS,] Department of 31 Education and Early Development , and Department of Community [COMMERCE]

01 and Economic Development, and with other public or private sector organizations for 02 the purpose of developing job, training, and educational opportunities for families 03 eligible for assistance under this chapter. 04 * Sec. 76. AS 47.27.900(2) is amended to read: 05  (2) "child care assistance" means payments made by the Department 06 of Health and Social Services or the Department of Education and Early 07 Development [COMMUNITY AND REGIONAL AFFAIRS] to Alaska temporary 08 assistance program participant families or to providers for the care of children of the 09 participant families; 10 * Sec. 77. AS 47.35.005(a) is amended to read: 11  (a) The purpose of this chapter is to establish and maintain standard levels for 12 services offered to children in [CHILD CARE FACILITIES,] foster homes [,] and 13 residential child care facilities; services offered by child placement agencies; and 14 services offered to pregnant individuals in maternity homes. [THE LEGISLATURE 15 RECOGNIZES THE RESPONSIBILITY OF PARENTS TO SELECT AND 16 MONITOR CAREGIVERS FOR THEIR CHILDREN IN ORDER TO ENSURE A 17 REASONABLY SAFE AND DEVELOPMENTALLY APPROPRIATE CHILD CARE 18 ENVIRONMENT.] The community care licensing procedures in this chapter are 19 intended to reduce predictable risk of harm to children and to provide support services 20 to those providing child care or services. 21 * Sec. 78. AS 47.35.010(a) is amended to read: 22  (a) The department may 23  (1) license and supervise foster homes, [CHILD CARE FACILITIES,] 24 residential child care facilities, semi-secure residential child care facilities, secure 25 residential psychiatric treatment centers, child placement agencies, and maternity 26 homes; 27  (2) investigate applicants, licensees, and persons that the department 28 reasonably believes are operating a facility without a license in violation of this 29 chapter; 30  (3) adopt regulations to implement the provisions of this chapter, 31 including regulations establishing licensure and renewal procedures, standards, and

01 fees; establishing requirements for operation of facilities or agencies licensed under this 02 chapter; 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 foster homes, [CHILD CARE FACILITIES,] residential 06 child care facilities, semi-secure residential child care facilities, secure residential 07 psychiatric treatment centers, child placement agencies, and maternity homes under 08 procedures and standards of operation established by the department. 09 * Sec. 79. AS 47.35.017(a) is amended to read: 10  (a) Application for a license to operate a foster home, [CHILD CARE 11 FACILITY,] residential child care facility, semi-secure residential child care facility, 12 secure residential psychiatric treatment center, child placement agency, or maternity 13 home shall be made to the department on a form provided by the department and shall 14 be accompanied by any applicable fees established by the department under 15 AS 47.35.010(a)(3). 16 * Sec. 80. AS 47.35.900(10) is amended to read: 17  (10) "facility" means the administration, program, and physical plant 18 of a foster home, [CHILD CARE FACILITY,] residential child care facility, or 19 maternity home; 20 * Sec. 81. AS 47.80.300 is amended to read: 21  Sec. 47.80.300. Statewide independent living council. There is established 22 the Statewide Independent Living Council. For budgetary purposes, the council is 23 located in the Department of Labor and Workforce Development [EDUCATION]. 24 The Department of Labor and Workforce Development [EDUCATION] shall provide 25 reasonable and necessary professional and technical assistance when requested by the 26 council. 27 * Sec. 82. AS 47.90.040 is amended to read: 28  Sec. 47.90.040. Consultation and coordination. The commissioner shall 29 consult and cooperate with the Department of Health and Social Services; the 30 Department of Education and Early Development; [, INCLUDING] the director of 31 the division of vocational rehabilitation; the University of Alaska, community colleges ,

01 and other colleges as appropriate; [THE DEPARTMENT OF LABOR, INCLUDING 02 THE DIVISION OF EMPLOYMENT SECURITY;] and other persons or agencies that 03 the commissioner considers appropriate in the implementation of this chapter. 04 * Sec. 83. AS 47.90.070(1) is amended to read: 05  (1) "commissioner" means the commissioner of labor and workforce 06 development [COMMUNITY AND REGIONAL AFFAIRS]; 07 * Sec. 84. REPEALER. AS 23.15.070, 23.15.210(4), 23.15.611, 23.15.614; 08 AS 23.20.130(d)(3); AS 39.25.120(c)(21); AS 42.45.020(b)(1), 42.45.030, 42.45.990(1); 09 AS 44.17.005(17); AS 44.33.120(a); AS 44.47.010, 44.47.020, 44.47.050, 44.47.051, 10 44.47.055, 44.47.080, 44.47.090, 44.47.092, 44.47.095, 44.47.100, 44.47.130, 44.47.140, 11 44.47.145, 44.47.150, 44.47.155, 44.47.250, 44.47.260, 44.47.270, 44.47.280, 44.47.290, 12 44.47.300, 44.47.305, 44.47.310, 44.47.565, 44.47.567, 44.47.569, 44.47.571, 44.47.573, 13 44.47.575, 44.47.577, 44.47.579, 44.47.581, 44.47.583, 44.47.700, 44.47.710, 44.47.720, 14 44.47.730, 44.47.750, 44.47.752, 44.47.754, 44.47.756, 44.47.758, 44.47.760, 44.47.762, 15 44.47.764, 44.47.766, 44.47.768, 44.47.770, 44.47.772, 44.47.800, 44.47.810, 44.47.820, 16 44.47.900, 44.47.980, 44.47.998; and AS 45.90.020(b) are repealed. 17 * Sec. 85. REPEALER. AS 44.19.620, 44.19.621, 44.19.622, 44.19.623, 44.19.624, 18 44.19.625, 44.19.626, 44.19.627; AS 44.29.020(a)(14); AS 44.33.895, added by sec. 64 of this 19 Act; and AS 47.35.010(b), 47.35.015(a), 47.35.043(b), 47.35.900(4), 47.35.900(5) are repealed 20 July 1, 2000. 21 * Sec. 86. TRANSITIONAL PROVISIONS. (a) Litigation, hearings, investigations, and 22 other proceedings pending under a law repealed or amended by this Act, or in connection with 23 functions transferred by this Act, continue in effect and may be completed notwithstanding 24 a transfer or repeal provided for in this Act. 25 (b) Certificates, orders, and regulations in effect immediately before the effective date 26 of a law affected by this Act that were issued or adopted under authority of a law amended 27 or repealed by this Act remain in effect for the term issued and shall be enforced by the 28 agency to which the function is transferred under this Act until revoked, vacated, or amended 29 by the agency to which the function is transferred. 30 (c) Wherever in Alaska Statutes affected by this Act there is a reference to regulations 31 adopted under a section of law and there are no regulations adopted under that section because

01 previous regulations adopted under another section are being enforced under (b) of this 02 section, the reference shall be construed to refer to the previously adopted regulations until 03 they are amended by the new agency. 04 (d) Contracts, rights, liabilities, and obligations created by or under a law repealed or 05 amended by this Act, and in effect on the day before the effective date of the repeal or 06 amendment, remain in effect notwithstanding this Act's taking effect. 07 (e) Records, equipment, appropriations, and other property of an agency of the state 08 whose functions are transferred under this Act shall be transferred to implement the provisions 09 of this Act. 10 * Sec. 87. REGULATIONS. A department affected by this Act may proceed to adopt 11 regulations to implement this Act. The regulations take effect under AS 44.62 (Administrative 12 Procedure Act) but not before the effective date of the corresponding enabling statute. 13 * Sec. 88. REVISOR'S INSTRUCTION REGARDING DEPARTMENT OF COMMERCE 14 AND ECONOMIC DEVELOPMENT. Wherever in the Alaska Statutes and the Alaska 15 Administrative Code the terms "Department of Commerce and Economic Development" and 16 "commissioner of commerce and economic development" are used, they shall be read, 17 respectively, as "Department of Community and Economic Development" and "commissioner 18 of community and economic development" when to do so would be consistent with the 19 changes made by this Act. 20 * Sec. 89. REVISOR'S INSTRUCTION REGARDING DEPARTMENT OF EDUCATION. 21 Wherever in the Alaska Statutes and the Alaska Administrative Code the terms "Department 22 of Education" and "commissioner of education" are used, they shall be read, respectively, as 23 "Department of Education and Early Development" and "commissioner of education and early 24 development" when to do so would be consistent with the changes made by this Act. 25 * Sec. 90. REVISOR'S INSTRUCTION REGARDING DEPARTMENT OF LABOR. (a) 26 Wherever in the Alaska Statutes and the Alaska Administrative Code the terms "Department 27 of Labor" and "commissioner of labor" are used, they shall be read, respectively, as 28 "Department of Labor and Workforce Development" and "commissioner of labor and 29 workforce development" when to do so would be consistent with the changes made by this 30 Act. 31 * Sec. 91. SPECIFIC INSTRUCTIONS TO REVISOR OF STATUTES CONCERNING

01 SPECIFIC REFERENCES. (a) The revisor of statutes shall change references to "community 02 and regional affairs" to read "community and economic development" in the following 03 statutes: 04 (1) AS 08.40.190(b)(2)(A), 08.40.390(b)(2)(A); 05 (2) AS 14.08.031(a), 14.08.051(a); AS 14.17.410(b)(2), 14.17.410(c)(1), 06 14.17.410(e)(1)(B), 14.17.490(b), 14.17.510(a); 07 (3) AS 15.07.055(a)(3); AS 15.13.010(a)(2); 08 (4) AS 18.26.030(a)(3); AS 18.56.030(a)(2), 18.56.097; 09 (5) AS 19.30.131(a), 19.30.131(b), 19.30.131(c); 10 (6) AS 26.23.071(b); 11 (7) AS 28.01.010(b); 12 (8) AS 29.60.120(d), 29.60.370(a), 29.60.620(b), 29.60.650(2); 13 AS 29.65.050(c), 29.65.050(d), 29.65.120; AS 29.71.800(5), 29.71.800(8); 14 (9) AS 37.05.317, 37.05.530(c); AS 37.06.010(g), 37.06.020(l), 37.06.030(c); 15 (10) AS 41.15.180(a), 41.15.180(b), 41.15.180(f), 41.15.180(g); 16 (11) AS 43.75.137; AS 43.77.040(b), 43.77.060(d); 17 (12) AS 44.21.200(a)(2); AS 44.85.030, 44.85.320(b); 18 (13) AS 46.08.040(a); 46.40.120(b), 46.40.120(d), 46.40.140(c), 46.40.170(a), 19 46.40.180(a), 46.40.180(d), 46.40.210(5); 20 (14) AS 47.18.010(c); AS 47.80.090(8). 21 (b) The revisor of statutes shall change references to "department" to read "authority" 22 in the following statutes: AS 42.45.010, 42.45.020, 42.45.040, 42.45.050, 42.45.060, 23 42.45.100, 42.45.110, 42.45.120, 42.45.140, 42.45.160, 42.45.170, 42.45.180, 42.45.200, 24 42.45.250, 42.45.400, and 42.45.410. 25 * Sec. 92. INSTRUCTIONS CONCERNING AS 25.27.244. Notwithstanding sec. 53, 26 ch. 132, SLA 1998, the amendment made to AS 25.27.244(s)(2) by sec. 28 of this Act shall 27 remain in effect on and after July 1, 2001, unless that amendment is repealed or amended by 28 a law enacted after the effective date of this bill section. 29 * Sec. 93. LOAN COMMITTEE UNDER AS 42.45.060. Notwithstanding 30 AS 42.45.060(a), as amended by sec. 47 of this Act, all public members on the loan 31 committee established under AS 42.45.060 whose terms have not expired by July 1, 1999,

01 may retain their positions on the committee until their terms expire. 02 * Sec. 94. IMPLEMENTATION OF SECTIONS 88 - 91 OF THIS ACT. Under 03 AS 01.05.031, the revisor of statutes shall implement secs. 88 - 91 in the statutes and, under 04 AS 44.62.125(b)(6), the regulations attorney shall implement secs. 88 - 91 in the 05 administrative code. 06 * Sec. 95. The Department of Labor and Workforce Development and Department of 07 Community and Economic Development shall perform a detailed evaluation addressing the 08 administrative, financial, and technical issues regarding the transfer of AS 18.62 and AS 18.63 09 to the Department of Community and Economic Development, Division of Occupational 10 Licensing, on July 1, 2000. The department must submit its report to the legislature by 11 December 1, 1999. 12 * Sec. 96. The Department of Labor and Workforce Development and Department of 13 Public Safety shall perform a detailed evaluation addressing the administrative, financial, and 14 technical issues regarding the transfer of construction and building inspection duties currently 15 within the Department of Labor and Workforce Development to the Department of Public 16 Safety on July 1, 2000. The department must submit its report of this evaluation to the 17 legislature by December 1, 1999. 18 * Sec. 97. Except as provided in secs. 98 and 99 of this Act, this Act takes effect July 1, 19 1999. 20 * Sec. 98. Section 87 of this Act takes effect immediately under AS 01.10.070(c). 21 * Sec. 99. The amendment made to AS 14.35.020(b)(5) by sec. 6 of this Act, the 22 amendment made to AS 44.27.020(3) and (4) by sec. 53 of this Act, and secs. 3, 4, 7, 9 - 13, 23 23, 25, 27, 28, 46, 65, 77 - 80, and 91 of this Act take effect July 1, 2000.