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HCS CSSB 203(FIN): "An Act relating to administrative hearings, to hearing officers, and to administrative law judges; establishing the office of administrative hearings and relating to that office; and providing for an effective date."

00 HOUSE CS FOR CS FOR SENATE BILL NO. 203(FIN) 01 "An Act relating to administrative hearings, to hearing officers, and to administrative 02 law judges; establishing the office of administrative hearings and relating to that office; 03 and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 06 to read: 07 PURPOSE. The purpose of this Act is to increase the separation between the 08 adjudicatory functions of executive branch agencies and the agencies' investigatory, 09 prosecutory, and policy-making functions. 10 * Sec. 2. AS 44 is amended by adding a new chapter to read: 11 Chapter 64. Hearing Officers and Office of Administrative Hearings. 12 Sec. 44.64.010. Office created. (a) There is created in the Department of 13 Administration an independent office of administrative hearings under the direction of 14 the chief administrative law judge.

01 (b) The chief administrative law judge must 02 (1) be a resident of the state; 03 (2) have experience in administrative law; 04 (3) be licensed to practice law in this state and have been admitted to 05 practice law in this state for at least five years; and 06 (4) have experience representing clients in administrative or judicial 07 proceedings. 08 (c) The chief administrative law judge is appointed to a five-year term of 09 office by the governor and is subject to confirmation by the legislature. An individual 10 may serve not more than three full or partial terms as chief administrative law judge. 11 The governor may remove the chief administrative law judge from office only for 12 good cause. The basis for removal shall be stated in writing. A vacancy in the office 13 of chief administrative law judge shall be filled by the governor and the individual 14 appointed serves for the remainder of the term to which appointed. 15 (d) The chief administrative law judge shall receive a monthly salary that is 16 not less than Step A nor more than Step F, Range 27, of the salary schedule in 17 AS 39.27.011(a) for Juneau, Alaska. The chief administrative law judge is in the 18 partially exempt service. 19 Sec. 44.64.020. Powers and duties of chief administrative law judge. (a) 20 The chief administrative law judge shall 21 (1) supervise the office; 22 (2) employ administrative staff, who shall be in the classified service; 23 (3) employ administrative law judges, who shall be in the partially 24 exempt service; 25 (4) preside over administrative hearings handled by the office or, based 26 upon the qualifications and expertise of the administrative law judges, assign 27 administrative law judges to preside over hearings, and protect, support, and enhance 28 the decisional independence of the administrative law judges; 29 (5) establish and implement performance standards, including 30 provision for timeliness, and peer review programs for administrative law judges 31 employed or retained by the office;

01 (6) make available and facilitate training and continuing education 02 programs and services in administrative procedure, administrative adjudication, 03 substantive law, alternate dispute resolution, and technical matters for administrative 04 law judges and other administrative adjudicators; 05 (7) survey administrative hearing participants and use other methods to 06 monitor the quality of administrative hearings held by the office and other state 07 agencies, and submit to the governor and the legislature on January 31 of each year the 08 results of the survey along with a report that includes a description of the activities of 09 the office and recommendations for statutory changes that may be needed in relation 10 to the administrative hearings held by the office or other state agencies; 11 (8) review and comment on regulations proposed by state agencies to 12 govern procedures in administrative hearings; 13 (9) enter into contracts as necessary to carry out the functions of the 14 office; 15 (10) annually prepare and submit to the commissioner of 16 administration a budget for the office for the next fiscal year that shall include and 17 separately identify funding for training and continuing education; a copy of the budget 18 submitted to the commissioner under this paragraph shall also be submitted to the 19 Finance Committee of each house of the legislature; and 20 (11) after consulting with affected agencies, adopt regulations under 21 AS 44.62 (Administrative Procedure Act) to carry out the duties of the office and 22 implement this chapter. 23 (b) In carrying out the responsibilities of the office, the chief administrative 24 law judge shall seek to accomplish the following goals: 25 (1) provide for the delivery of high quality adjudication services in a 26 timely, efficient, and cost-effective manner; 27 (2) ensure respect for the privacy and dignity of the individuals whose 28 cases are being adjudicated and protect them from threats, intimidation, and 29 harassment; 30 (3) foster open and clearly explained agency decisions and improve 31 public access to the process of administrative adjudication;

01 (4) guarantee protection of all parties' due process rights, increase the 02 public parties' perception of fairness in administrative adjudication, and foster 03 acceptance of final administrative decisions by the public and affected parties; 04 (5) protect the integrity of the process of administrative adjudication 05 and decisional independence of administrative adjudicators; and 06 (6) increase consistency in administrative procedures and decisions. 07 * Sec. 3. AS 44.64 is amended by adding new sections to read: 08 Sec. 44.64.030. Jurisdiction of the office. (a) The office shall conduct all 09 adjudicative administrative hearings required under the following statutes or under 10 regulations adopted to implement the statutes: 11 (1) AS 04.11.510(b)(1) and (c) (alcoholic beverages license); 12 (2) AS 05.15 (charitable gaming); 13 (3) AS 05.20 (recreational devices); 14 (4) AS 05.90.001 (special racing events); 15 (5) AS 06 (banks and financial institutions); 16 (6) AS 08 (occupational licensing), other than AS 08.08 and 17 AS 08.62.046; 18 (7) AS 10.06 (Alaska Corporations Code); 19 (8) AS 10.13 (Alaska BIDCO Act); 20 (9) AS 10.25.375 (Electric and Telephone Cooperative Act); 21 (10) AS 10.50.408 (limited liability companies); 22 (11) AS 14.11.016 (education-related facility grants); 23 (12) AS 14.18 (discrimination in public education); 24 (13) AS 14.48 (postsecondary educational institutions); 25 (14) AS 17.20 (Alaska Food, Drug, and Cosmetic Act), other than 26 AS 17.20.060 and 17.20.360; 27 (15) AS 18.18.030 (hospice licenses); 28 (16) AS 18.20 (hospitals and nursing facilities), other than 29 AS 18.20.180; 30 (17) AS 18.35.040 (tourist accommodations); 31 (18) AS 21.09, AS 21.22.190, AS 21.27, AS 21.34, AS 21.36,

01 AS 21.69, AS 21.86.200, AS 21.87, and AS 21.89 (insurance); 02 (19) AS 25.27 (child support enforcement); 03 (20) AS 32.06 (Uniform Partnership Act); 04 (21) AS 34.45 (unclaimed property); 05 (22) AS 34.55.024 and 34.55.026 (Uniform Land Sales Practices Act); 06 (23) AS 36.30 (State Procurement Code), other than 07 AS 36.30.627(a)(2); 08 (24) AS 38.05.065 (contracts for sale of state land); 09 (25) AS 39.52 (Alaska Executive Branch Ethics Act); 10 (26) AS 43.23 (permanent fund dividends); 11 (27) AS 43.70 (Alaska Business License Act); 12 (28) AS 44.50 (notaries public); 13 (29) AS 44.77 (claims against the state); 14 (30) AS 45.30.040 (mobile homes); 15 (31) AS 45.55 (Alaska Securities Act); 16 (32) AS 45.57 (Takeover Bid Disclosure Act); 17 (33) AS 47.33 (assisted living homes); 18 (34) AS 47.35 (child care); 19 (35) AS 47.45 (longevity bonuses). 20 (b) An agency may request the office to conduct an administrative hearing or 21 other proceeding of that agency or to conduct several administrative hearings or other 22 proceedings under statutes not listed in (a) of this section. The office may provide the 23 service after entering into a written agreement with the agency describing the services 24 to be provided and providing for reimbursement by the agency to the office of the 25 costs incurred by the office in providing the services. 26 (c) To the extent otherwise permitted by law, the agency may delegate to the 27 administrative law judge assigned to conduct the hearing on behalf of the agency the 28 authority to make a final agency decision in the matter. The final decision may be 29 appealed to the superior court by any party. 30 (d) Nothing in this chapter may be construed to create a right to a hearing or to 31 require a hearing that is not required under other law.

01 Sec. 44.64.040. Administrative law judges. (a) An administrative law judge 02 must be admitted to practice law in this state and must have been admitted to practice 03 in this state for at least two years before being employed or retained with the office. 04 The chief administrative law judge shall establish additional qualifications for 05 administrative law judges employed or retained by the office and for those 06 administrative law judges that may be assigned to particular types of cases. An 07 administrative law judge is in the partially exempt service. Notwithstanding 08 AS 39.25.120(b), full-time administrative law judges employed by the office are 09 subject to the personnel rules adopted under AS 39.25.150(7), (15), and (16). 10 (b) An administrative law judge employed or retained by the office may, in 11 conducting an administrative hearing for an agency, exercise the powers authorized by 12 law for exercise by that agency in the performance of its duties in connection with the 13 hearing. An administrative law judge may 14 (1) engage in alternative dispute resolution under regulations adopted 15 by the chief administrative law judge that is in addition to any alternate dispute 16 resolution procedure used by an agency before the case is referred to the office; 17 (2) order a party, a party's attorney, or another authorized 18 representative of a party to pay reasonable expenses, including attorney fees, incurred 19 by another party as a result of actions done in bad faith or as a result of tactics used 20 frivolously or solely intended to cause unnecessary delay; 21 (3) perform other necessary and appropriate acts in the performance of 22 official duties. 23 (c) An administrative law judge employed by the office must devote full time 24 to the duties of the office unless appointed to a position that is less than full-time. An 25 administrative law judge employed by the office may not perform duties inconsistent 26 with the duties and responsibilities of an administrative law judge. 27 (d) The office may enter into a contract with an individual who meets the 28 qualifications established in (a) of this section to serve as an administrative law judge 29 in a particular administrative hearing or in several hearings of the same type. The 30 individual is subject to AS 39.52 (Alaska Executive Branch Ethics Act). 31 Notwithstanding AS 36.30.015(d), the office may contract for or hire an

01 administrative law judge without notifying or securing the approval of the Department 02 of Law. 03 Sec. 44.64.050. Hearing officer conduct. (a) An administrative law judge 04 employed full time by the office or a hearing officer employed full time by an agency 05 may not serve in any other judicial or quasi-judicial capacity or engage in the private 06 practice of law. 07 (b) The chief administrative law judge shall, subject to AS 39.52.920 and by 08 regulation, adopt a code of hearing officer conduct. The code shall apply to the chief 09 administrative law judge, administrative law judges of the office, and hearing officers 10 of each other agency. The following fundamental canons of conduct shall be included 11 in the code: in carrying out official duties an administrative law judge or hearing 12 officer shall 13 (1) uphold the integrity and independence of the office; 14 (2) avoid impropriety and the appearance of impropriety; 15 (3) perform the duties of the office impartially and diligently; 16 (4) conduct unofficial activities in ways that minimize the risk of 17 conflict with the obligations of the office; and 18 (5) refrain from inappropriate activity in seeking employment with 19 another agency or employer or in seeking reappointment. 20 (c) Except as provided in (e) of this section, the chief administrative law judge 21 shall receive and consider all complaints against administrative law judges or hearing 22 officers employed or retained by the office or another agency alleging violations of (a) 23 of this section or of the code of hearing officer conduct. The chief administrative law 24 judge shall deliver the complaint to the attorney general when the chief administrative 25 law judge determines that the conduct alleged, if true, would constitute a violation of 26 (1) subsection (a) of this section; or 27 (2) the code and would warrant disciplinary action under the 28 regulations adopted under (b) of this section. 29 (d) If the attorney general determines that a violation has occurred, the 30 attorney general shall submit written findings to the agency that employed or retained 31 the administrative law judge or hearing officer who is the subject of the complaint

01 together with recommendations for corrective or disciplinary action. If the 02 administrative law judge is employed or retained by the office, the chief administrative 03 law judge shall take appropriate corrective or disciplinary action. 04 (e) The attorney general shall, by regulation, establish procedures to 05 implement (d) of this section, including procedures for investigating and holding 06 hearings on complaints. The attorney general shall receive and consider any 07 complaint filed against the chief administrative law judge under this section, and may 08 investigate or hold a hearing on the complaint in compliance with the regulations 09 adopted under this subsection. 10 Sec. 44.64.055. Reimbursement agreements. The office may enter into 11 agreements for reimbursement for services related to an administrative hearing from a 12 school district, municipality, or other governmental entity if the reimbursement is 13 authorized by other law. 14 Sec. 44.64.060. Procedure for hearings. (a) The chief administrative law 15 judge shall, by regulation, establish procedures for administrative hearings conducted 16 by the office. Each administrative hearing under the jurisdiction of the office or that 17 has been transferred to the office by an agency shall be conducted in accordance with 18 statutes that apply to that hearing, including, if applicable, AS 44.62 (Administrative 19 Procedure Act). In case of conflict between this section and another applicable statute 20 establishing procedures for administrative hearings, the other statute prevails. 21 However, to the extent regulations adopted by an agency for the conduct of an 22 administrative hearing conflict with regulations adopted by the chief administrative 23 law judge under this subsection, the regulations adopted by the chief administrative 24 law judge control to the maximum extent possible without conflicting with applicable 25 statutes. 26 (b) When an agency receives a request for a hearing that is subject to 27 AS 44.64.030, the agency shall, within 10 days and in writing, deny the request for 28 reasons provided by law or grant the request and refer the case to the office. The 29 agency shall immediately give notice of the denial or referral to the requestors and the 30 office. If the request is denied, the denial may be appealed to the superior court as 31 provided by other law. If the request is granted, the agency shall, within 15 days after

01 receiving the request, compile and transmit to the office a copy of the request for a 02 hearing, the names, addresses, and telephone numbers of all parties and their 03 representatives, and the agency's decision, if any, together with the record relied on to 04 support the decision. Any information provided to the office that is confidential by 05 law shall be identified by the agency as confidential and shall be kept confidential by 06 the office. 07 (c) The agency may, with materials transmitted under (b) of this section, 08 request the chief administrative law judge to permit the individual, board, or 09 commission that will make the final decision to participate with the assigned 10 administrative law judge in the conduct of the administrative hearing. The chief 11 administrative law judge shall determine the degree and manner of participation and 12 may terminate that participation at any time. However, the individual, board, or 13 commission that participates under this subsection may not serve as the administrative 14 law judge or preside during the hearing and may not take action on behalf of the 15 agency in the agency's capacity as a party to the proceedings. 16 (d) An administrative law judge employed or retained by the office shall, 17 within 120 days after the date the agency received the request for a hearing, prepare a 18 proposed decision, unless another time period is provided by law or agreed to by the 19 parties and the chief administrative law judge. The administrative law judge shall 20 immediately submit the proposed decision to the agency. 21 (e) A proposed decision in an administrative hearing shall be in a form that 22 may be adopted as the final decision by the agency with authority to make the final 23 decision. The proposed decision is a public record, except as otherwise provided by 24 statute. A copy of the proposed decision shall be served by the office on each party in 25 the case or on the attorneys representing those parties in the hearing. Unless the office 26 has established a shorter time period or another statute has established a different time 27 period, within 30 days after the proposed decision is served, a party may file with the 28 agency a proposal for action under (1) - (5) of this subsection. The agency with 29 authority to make a final decision in the case retains agency discretion in the final 30 disposition of the case and shall, within 45 days after the date the proposed decision is 31 served or at the next regularly scheduled meeting that occurs at least 45 days after the

01 proposed decision is served, do one or more of the following: 02 (1) adopt the proposed decision as the final agency decision; 03 (2) return the case to the administrative law judge to take additional 04 evidence or make additional findings or for other specific proceedings, in which case 05 the administrative law judge shall complete the additional work and return the revised 06 proposed decision to the agency within 45 days after the original decision was 07 returned under this paragraph; 08 (3) exercise its discretion by revising the proposed enforcement action, 09 determination of best interests, order, award, remedy, sanction, penalty, or other 10 disposition of the case, and adopt the proposed decision as revised; 11 (4) in writing, reject, modify, or amend a factual finding in the 12 proposed decision by specifying the affected finding and identifying the testimony and 13 other evidence relied on by the agency for the rejection, modification, or amendment 14 of the finding, and issue a final agency decision; 15 (5) in writing, reject, modify, or amend an interpretation or application 16 in the proposed decision of a statute or regulation directly governing the agency's 17 actions by specifying the reasons for the rejection, modification, or amendment, and 18 issue a final agency decision. 19 (f) If a final decision is not issued timely in accordance with (e) of this section, 20 the administrative law judge's proposed decision is the final agency decision. 21 Sec. 44.64.070. Disqualification of administrative law judge. (a) The chief 22 administrative law judge or an administrative law judge employed or retained by the 23 office is disqualified from a case in which the administrative law judge cannot accord 24 a fair and impartial hearing or for other reasons established in the code of hearing 25 officer conduct. 26 (b) A party may request the disqualification of the chief administrative law 27 judge or another administrative law judge by filing an affidavit, before the taking of 28 evidence at a hearing, stating with particularity the grounds upon which it is claimed 29 that a fair and impartial hearing cannot be accorded by that administrative law judge. 30 Notwithstanding AS 44.62.450(c), upon receipt of the affidavit, the administrative law 31 judge assigned to the administrative hearing shall make a determination. If the affiant

01 objects to the decision, the matter shall be decided by the chief administrative law 02 judge, whose decision is final, or if the hearing is assigned to the chief administrative 03 law judge, by the attorney general, whose decision is final. 04 (c) In addition to disqualification of an administrative law judge under (a) and 05 (b) of this section, each side is entitled to change the assigned administrative law judge 06 once. Two or more parties aligned on the same side of an action shall be treated as 07 one side for purposes of this subsection, but the chief administrative law judge may 08 allow an additional change to a party whose interests are adverse to the interests of 09 another party on the same side. A party wishing to exercise the right to change the 10 administrative law judge shall give notice to the chief administrative law judge within 11 five days after notice is given that the case has been assigned. A party waives the 12 right to a change in the assigned administrative law judge by participating before that 13 administrative law judge in any proceeding or conference involving the case. 14 Sec. 44.64.080. Agency cooperation. (a) All agencies shall cooperate with 15 the chief administrative law judge and with other administrative law judges of the 16 office in the matters involving the duties of the office. 17 (b) Except as provided under AS 44.64.070 or by regulation adopted under 18 this chapter, an agency may not select or reject a particular administrative law judge 19 for assignment to an administrative hearing. 20 (c) After an administrative hearing is referred by an agency to the office for 21 hearing, the agency may not take further adjudicatory action in the case, except as a 22 party litigant or to render a final decision as provided by law. This subsection does 23 not otherwise limit the agency's authority to take action affecting a party to the case. 24 Sec. 44.64.090. Administrative hearing records. (a) The office shall 25 acquire and organize statistical and other information relating to administrative 26 hearings of the office and of other agencies. The office shall acquire and organize 27 copies of proposed and final agency decisions in administrative hearings and copies of 28 court decisions resulting from those administrative hearings. The information and 29 decisions shall be made available to the public, agencies, and the legislature. The 30 office shall make final agency decisions reached after administrative hearings 31 available online through an electronic data base.

01 (b) This section does not apply to records that are confidential or privileged. 02 Sec. 44.64.095. Federal requirements. Federal requirements applicable to an 03 administrative hearing prevail to the extent they conflict with any provision of 04 AS 44.64.010 - 44.64.200. 05 Sec. 44.64.200. Definitions. In this chapter, 06 (1) "administrative hearing" means a quasi-judicial hearing before an 07 agency; it does not include an informal conference or review held by an agency before 08 a final decision is issued or a rate-making proceeding or other nonadjudicative public 09 hearing; 10 (2) "administrative law judge" means a hearing officer who is retained 11 or employed by the office; 12 (3) "agency" means an agency of the executive branch of state 13 government, including an officer, a division, or another subunit of an agency, a board 14 or commission, a public corporation, and the University of Alaska; 15 (4) "hearing officer" means an individual who presides over the 16 conduct of an administrative hearing and who is retained or employed by an agency 17 for that purpose; 18 (5) "office" means the office of administrative hearings established in 19 AS 44.64.010. 20 * Sec. 4. AS 04.11.510(b) is amended to read: 21 (b) The board may review an application for the issuance, renewal, transfer of 22 location, or transfer to another person of a license without affording the applicant 23 notice or hearing, except 24 (1) if an application is denied, the notice of denial shall be furnished 25 the applicant immediately in writing stating the reason for the denial in clear and 26 concise language; the notice of denial must inform the applicant that the applicant is 27 entitled to an informal conference with either the director or the board, and that, if not 28 satisfied by the informal conference, the applicant is then entitled to a formal hearing 29 conducted by the office of administrative hearings (AS 44.64.010) [BEFORE THE 30 BOARD]; if the applicant requests a formal hearing, the office of administrative 31 hearings [BOARD] shall adhere to AS 44.62.330 - 44.62.630 (Administrative

01 Procedure Act); all interested persons may be heard at the hearing and unless waived 02 by the applicant and the board, the formal hearing shall be held in the area for which 03 the application is requested; 04 (2) the board may, on its own initiative or in response to an objection 05 or protest, hold a hearing to ascertain the reaction of the public or a local governing 06 body to an application if a hearing is not required under this subsection; the board 07 shall send notice of a hearing conducted under this paragraph 20 days in advance of 08 the hearing to each community council established within the municipality and to each 09 nonprofit community organization entitled to notification under AS 04.11.310(b); 10 (3) if a petition containing the signatures of 35 percent of the adult 11 residents having a permanent place of abode outside of but within two miles of an 12 incorporated city or an established village is filed with the board, the board shall hold 13 a public hearing on the question of whether the issuance, renewal, or transfer of the 14 license in the city or village would be in the public interest; 15 (4) if a protest to the issuance, renewal, transfer of location or transfer 16 to another person of a license made by a local governing body is based on a question 17 of law, the board shall hold a public hearing. 18 * Sec. 5. AS 05.20.080 is amended to read: 19 Sec. 05.20.080. Application of Administrative Procedure Act. The 20 procedure for review of the orders or actions of the department, its agents or 21 employees, is the same as that contained in AS 44.62 (Administrative Procedure Act). 22 Administrative hearings on contested cases shall be conducted by the office of 23 administrative hearings (AS 44.64.010). 24 * Sec. 6. AS 06.01.030(f) is amended to read: 25 (f) Hearings required or authorized under this title are not subject to 26 AS 44.62.330 - 44.62.630, except as required by AS 44.62.560 and 44.62.570. The 27 department shall adopt regulations, consistent with the provisions of this title, 28 establishing procedures for hearings held under this section. Administrative 29 hearings on contested cases shall be conducted by the office of administrative 30 hearings (AS 44.64.010). 31 * Sec. 7. AS 08.01.075(c) is amended to read:

01 (c) A board may summarily suspend a licensee from the practice of the 02 profession before a final hearing is held or during an appeal if the board finds that the 03 licensee poses a clear and immediate danger to the public health and safety. A person 04 is entitled to a hearing conducted by the office of administrative hearings 05 (AS 44.64.010) [BEFORE THE BOARD] to appeal the summary suspension within 06 seven days after the order of suspension is issued. A person may appeal an adverse 07 decision of the board on an appeal of a summary suspension to a court of competent 08 jurisdiction. 09 * Sec. 8. AS 08.01.087(b) is amended to read: 10 (b) If it appears to the commissioner that a person has engaged in or is about 11 to engage in an act or practice in violation of a provision of this chapter or a regulation 12 adopted under it, or a provision of AS 43.70, or a provision of this title or regulation 13 adopted under this title dealing with an occupation or board listed in AS 08.01.010, the 14 commissioner may, if the commissioner considers it in the public interest, and after 15 notification of a proposed order or action by telephone, telegraph, or facsimile to all 16 board members, if a board regulates the act or practice involved, unless a majority of 17 the members of the board object within 10 days, 18 (1) issue an order directing the person to stop the act or practice; 19 however, reasonable notice of and an opportunity for a hearing must first be given to 20 the person, except that the commissioner may issue a temporary order before a hearing 21 is held; a temporary order remains in effect until a final order affirming, modifying, or 22 reversing the temporary order is issued or until 15 days after the person receives the 23 notice and has not requested a hearing by that time; a temporary order becomes final if 24 the person to whom the notice is addressed does not request a hearing within 15 days 25 after receiving the notice; the office of administrative hearings (AS 44.64.010) 26 [COMMISSIONER OR THE COMMISSIONER'S DESIGNEE] shall conduct [BE 27 THE HEARING OFFICER AT] the hearing and shall issue a proposed decision 28 [FINAL ORDER] within 10 days after the hearing; the commissioner shall issue a 29 final order within five days after the proposed decision is issued; 30 (2) bring an action in the superior court to enjoin the acts or practices 31 and to enforce compliance with this chapter, a regulation adopted under it, an order

01 issued under it, or with a provision of this title or regulation adopted under this title 02 dealing with business licenses or an occupation or board listed in AS 08.01.010; 03 (3) examine or have examined the books and records of a person 04 whose business activities require a business license or licensure by a board listed in 05 AS 08.01.010, or whose occupation is listed in AS 08.01.010; the commissioner may 06 require the person to pay the reasonable costs of the examination; and 07 (4) issue subpoenas for the attendance of witnesses, and the production 08 of books, records, and other documents. 09 * Sec. 9. AS 08.11.090(c) is amended to read: 10 (c) The department may summarily suspend a license before final hearing or 11 during the appeals process if the department finds that the licensee poses a clear and 12 immediate danger to the public welfare and safety if the licensee continues to practice. 13 An individual whose license is suspended under this subsection is entitled to a hearing 14 conducted by the office of administrative hearings (AS 44.64.010) not 15 [DEPARTMENT NO] later than seven days after the effective date of the order. The 16 individual may appeal the suspension after the hearing to the superior court. 17 * Sec. 10. AS 08.32.171(c) is amended to read: 18 (c) The board may summarily suspend the license of a licensee who refuses to 19 submit to a physical or mental examination under AS 08.36.070(b)(1). A person 20 whose license is suspended under this section is entitled to a hearing conducted by the 21 office of administrative hearings (AS 44.64.010) [BOARD] within seven days after 22 the effective date of the order. If, after a hearing, the board upholds the suspension, 23 the licensee may appeal the suspension to a court of competent jurisdiction. 24 * Sec. 11. AS 08.36.320(c) is amended to read: 25 (c) The board may summarily suspend the license of a licensee who refuses to 26 submit to a physical or mental examination under AS 08.36.070(b)(1). A person 27 whose license is suspended under this section is entitled to a hearing conducted by the 28 office of administrative hearings (AS 44.64.010) [BOARD] within seven days after 29 the effective date of the order. If, after a hearing, the board upholds the suspension, 30 the licensee may appeal the suspension to a court of competent jurisdiction. 31 * Sec. 12. AS 08.40.170(f) is amended to read:

01 (f) The department may summarily suspend a license before a final hearing is 02 held or during an appeal if the department finds that the licensee poses a clear and 03 immediate danger to the public health and safety. A person is entitled to a hearing 04 conducted by [BEFORE] the office of administrative hearings (AS 44.64.010) 05 [DEPARTMENT] to appeal the summary suspension within seven days after the order 06 of suspension is issued. A person may appeal an adverse decision of the department 07 on an appeal of a summary suspension to a court of competent jurisdiction. 08 * Sec. 13. AS 08.40.320(f) is amended to read: 09 (f) The department may summarily suspend a license before a final hearing is 10 held or during an appeal if the department finds that the licensee poses a clear and 11 immediate danger to the public health and safety. A person is entitled to a hearing 12 conducted by [BEFORE] the office of administrative hearings (AS 44.64.010) 13 [DEPARTMENT] to appeal the summary suspension within seven days after the order 14 of suspension is issued. A person may appeal an adverse decision of the department 15 on an appeal of a summary suspension to a court of competent jurisdiction. 16 * Sec. 14. AS 08.45.070(c) is amended to read: 17 (c) The division may summarily suspend a license before final hearing or 18 during the appeals process if the division finds that the licensee poses a clear and 19 immediate danger to the public health and safety if the licensee continues to practice. 20 A licensee whose license is suspended under this section is entitled to a hearing 21 conducted by the office of administrative hearings (AS 44.64.010) not [DIVISION 22 NO] later than seven days after the effective date of the order. The licensee may 23 appeal the suspension after a hearing to a court of competent jurisdiction. 24 * Sec. 15. AS 08.54.710(i) is amended to read: 25 (i) The department may summarily suspend a licensee from practice of the 26 profession under this chapter, for a period of not more than 30 days, before a final 27 hearing is held or during an appeal if the department finds that the licensee poses a 28 clear and immediate danger to the public health and safety. A person is entitled to a 29 hearing conducted by [BEFORE] the office of administrative hearings 30 (AS 44.64.010) [DEPARTMENT] to appeal the summary suspension within seven 31 days after the order of suspension is issued. A person may appeal an adverse decision

01 of the department on an appeal of summary suspension to a court of competent 02 jurisdiction. 03 * Sec. 16. AS 08.55.140(c) is amended to read: 04 (c) The department may summarily suspend a license before final hearing or 05 during the appeals process if the department finds that the licensee poses a clear and 06 immediate danger to the public welfare and safety if the licensee continues to practice. 07 A person whose license is suspended under this subsection is entitled to a hearing 08 conducted by the office of administrative hearings (AS 44.64.010) not 09 [DEPARTMENT NO] later than seven days after the effective date of the order. The 10 person may appeal the suspension after the hearing to the superior court. 11 * Sec. 17. AS 08.64.331(c) is amended to read: 12 (c) The board may summarily suspend a license before final hearing or during 13 the appeals process if the board finds that the licensee poses a clear and immediate 14 danger to the public health and safety if the licensee continues to practice. A person 15 whose license is suspended under this section is entitled to a hearing conducted by the 16 office of administrative hearings (AS 44.64.010) not [BOARD NO] later than seven 17 days after the effective date of the order and the person may appeal the suspension 18 after a hearing to a court of competent jurisdiction. 19 * Sec. 18. AS 08.65.120(c) is amended to read: 20 (c) The board may summarily suspend a license before final hearing or during 21 the appeals process if the board finds that the licensee poses a clear and immediate 22 danger to the public health and safety if the licensee continues to practice. A person 23 whose license is suspended under this section is entitled to a hearing conducted by the 24 office of administrative hearings (AS 44.64.010) not [BOARD NO] later than seven 25 days after the effective date of the order and the person may appeal the suspension 26 after a hearing to a court of competent jurisdiction. 27 * Sec. 19. AS 08.68.275(c) is amended to read: 28 (c) The board may summarily suspend a license before final hearing or during 29 the appeals process if the board finds that the licensee poses a clear and immediate 30 danger to the public health and safety. A person whose license is suspended under this 31 section is entitled to a hearing conducted by the office of administrative hearings

01 (AS 44.64.010) [BOARD] within seven days after the effective date of the order. If, 02 after a hearing, the board upholds the suspension, the licensee may appeal the 03 suspension to a court of competent jurisdiction. 04 * Sec. 20. AS 08.86.204(b) is amended to read: 05 (b) The board may summarily suspend the license of a licensee who refuses to 06 submit to a physical or mental examination under AS 08.86.075. A person whose 07 license is suspended under this subsection is entitled to a hearing conducted by the 08 office of administrative hearings (AS 44.64.010) [BOARD] within seven days after 09 the effective date of the order. If, after the [A] hearing, the board upholds the 10 suspension, the licensee may appeal the suspension to a court of competent 11 jurisdiction. 12 * Sec. 21. AS 08.88.460(b) is amended to read: 13 (b) A copy of a claim filed with the commission under (a) of this section shall 14 be sent to each real estate licensee alleged to have committed the misconduct resulting 15 in losses, to the principal real estate broker employing a licensee alleged to have 16 committed the conduct resulting in losses, and to any other real estate licensee 17 involved in the transaction at least 20 days before any hearing held on the claim by the 18 office of administrative hearings (AS 44.64.010) [COMMISSION]. 19 * Sec. 22. AS 08.88.460(d) is amended to read: 20 (d) A claimant under this section shall pay a filing fee of $250 to the 21 commission at the time the claim is filed. The filing fee shall be refunded if the 22 (1) [THE] commission makes an award to the claimant from the real 23 estate surety fund; 24 (2) [THE] claim is dismissed under (c) of this section; or 25 (3) [THE] claim is withdrawn by the claimant before the office of 26 administrative hearings (AS 44.64.010) [COMMISSION] holds a hearing on the 27 claim. 28 * Sec. 23. AS 08.88.472(c) is amended to read: 29 (c) The commission may contract under AS 36.30 (State Procurement Code) 30 with a person for the person to perform [HEARING AND] legal services for the 31 commission with regard to a claim against the real estate surety fund. The contract

01 may cover one or more claims. 02 * Sec. 24. AS 08.92.040(c) is amended to read: 03 (c) If the department determines that a person is acting as a promoter in 04 violation of this chapter, the department may order the person to stop the violation. 05 Upon receipt of the order, the person affected has the right to be heard and to present 06 proof to the office of administrative hearings (AS 44.64.010) [DEPARTMENT] that 07 the violation has not occurred. Upon [IN THE DEPARTMENT'S DISCRETION OR 08 UPON] application made by the recipient of the order, the office of administrative 09 hearings may [DEPARTMENT SHALL] schedule a hearing at the earliest possible 10 time. After the hearing the department may affirm, modify, or set aside the order. 11 * Sec. 25. AS 10.06.633(b) is amended to read: 12 (b) A corporation may not be dissolved under this section unless the 13 commissioner has given the corporation written notice of its delinquency, failure, or 14 noncompliance by mail as provided by (i) of this section. If the corporation fails, 15 within 60 days after the requirements of (i) of this section have been satisfied, to 16 contest the alleged neglect, omission, delinquency, or noncompliance by a written 17 request for a hearing conducted by [BEFORE] the office of administrative hearings 18 (AS 44.64.010) [COMMISSIONER] or fails to correct the asserted neglect, omission, 19 delinquency, or noncompliance, it may be dissolved under (d) of this section. 20 * Sec. 26. AS 10.06.865 is amended to read: 21 Sec. 10.06.865. Cancellation of certificates issued and filings accepted. 22 The commissioner may, within one year after a filing, and after written notice to the 23 corporation or individual making the filing, cancel a certificate issued or filing 24 accepted under this chapter, on any ground existing at the time of issuance or filing for 25 which the commissioner could have originally refused to issue the certificate or accept 26 the filing. The notice of cancellation must state the reason for the cancellation. A 27 corporation or individual may request a hearing conducted by [BEFORE] the office 28 of administrative hearings (AS 44.64.010) [COMMISSIONER] within 90 days after 29 receipt of the notice. Cancellation becomes final if the corporation or individual does 30 not request a hearing within 90 days after receipt of notice. Notice of cancellation 31 shall be sent by certified mail with return receipt requested. If the return receipt is not

01 received by the department within a reasonable time and the department has made 02 diligent inquiry as to the address of the corporation, notice may be made by 03 publication in a newspaper of general circulation in the vicinity of the registered office 04 of the corporation or the address of the individual who made the filing, and the 05 cancellation becomes final 60 days after publication of the notice if the person or 06 corporation does not request a hearing. 07 * Sec. 27. AS 10.13.770(b) is amended to read: 08 (b) If the department fails to promptly notify the office of administrative 09 hearings (AS 44.64.010) of the application and the office fails to begin a hearing 10 within 15 business days after the application is filed or within a longer period to which 11 the licensee or subject person consents, the order shall be considered rescinded. 12 * Sec. 28. AS 14.11.016(b) is amended to read: 13 (b) A district may appeal an adverse decision of the department under (a) of 14 this section by filing a written notice of appeal with the commissioner within 15 days 15 after the date of the department's decision. The notice of appeal must state the legal 16 and factual basis for the appeal and the precise relief sought. The failure of the district 17 to include an issue in a notice of appeal constitutes a waiver of the right to have the 18 issue considered. Not later than 10 days after receipt by the commissioner of a notice 19 of appeal, the chief administrative law judge of the office of administrative 20 hearings (AS 44.64.010) [COMMISSIONER] shall appoint an administrative law 21 judge [A HEARING OFFICER] who is qualified under AS 44.62.350(c) to serve as 22 hearing officer and consider the appeal. If the hearing officer finds that the notice of 23 appeal does not raise a reasonable issue of fact or law, the hearing officer shall issue a 24 written decision denying the appeal. Denial of an appeal by hearing officer is a final 25 decision that may be appealed under (d) of this section. If the hearing officer finds 26 that the notice of appeal raises a reasonable issue of fact or law, the hearing officer 27 shall conduct a hearing on those issues and recommend a decision to the board. The 28 hearing officer shall issue a decision on the appeal not later than 60 days after being 29 appointed. The board shall consider the recommended decision of the hearing officer 30 at its next regularly scheduled meeting and may adopt all, part, or none of the 31 recommended decision or may remand the issue to the hearing officer for further

01 hearings. The board shall issue its decision in writing within 10 days after 02 consideration of the hearing officer's decision. 03 * Sec. 29. AS 14.18.090(a) is amended to read: 04 (a) The board shall enforce compliance by school districts and regional 05 educational attendance areas with the provisions of this chapter and the regulations 06 and procedures adopted under it by appropriate order made in accordance with 07 AS 44.62. After a hearing conducted by the office of administrative hearings 08 (AS 44.64.010) and a finding by the board that a district or a regional educational 09 attendance area is not in compliance with this chapter and is not actively working to 10 come into compliance, the board shall institute appropriate proceedings to abate the 11 practices found by the board to be a violation of this chapter. 12 * Sec. 30. AS 14.20.030 is amended by adding a new subsection to read: 13 (c) The commissioner or the Professional Teaching Practices Commission 14 shall request the chief administrative law judge (AS 44.64.020), to appoint an 15 administrative law judge employed by the office of administrative hearings to preside 16 at a hearing conducted under this section. AS 44.64.060 and 44.64.070 do not apply 17 to the hearing. 18 * Sec. 31. AS 14.48.130(b) is amended to read: 19 (b) The commission shall investigate the complaint and may attempt to effect 20 a settlement by persuasion and conciliation. A [THE COMMISSION MAY 21 CONSIDER A] complaint may be considered after 30 days' [DAYS] written notice 22 by registered mail to the institution or agent, or both, giving notice of a time and place 23 for hearing on the complaint. The hearing shall be conducted in accordance with 24 AS 44.62 (Administrative Procedure Act) by the office of administrative hearings 25 (AS 44.64.010). 26 * Sec. 32. AS 18.18.030(b) is amended to read: 27 (b) The department may, without a hearing, summarily suspend a license of a 28 hospice program if it finds that the actions or deficiencies of the program have caused, 29 or present an immediate threat of causing, serious injury to a hospice program client. 30 A licensee is entitled to a hearing conducted by the office of administrative 31 hearings (AS 44.64.010) [BEFORE THE DEPARTMENT] to appeal the summary

01 suspension within seven days after the order of suspension is issued. A licensee may 02 appeal an adverse decision of the department on an appeal of a summary suspension to 03 the superior court. A summary suspension remains in effect until the department finds 04 that the actions or deficiencies are corrected, the license is revoked, or the licensee is 05 successful in appealing the suspension. 06 * Sec. 33. AS 18.18.030(c) is amended to read: 07 (c) The department may, without a hearing, reduce a hospice license to a 08 provisional license for a period of time established by the department if the department 09 finds that the licensee is temporarily unable to comply with 18.18.005 - 18.18.390 or 10 is in the process of becoming decertified under the Medicare program but is taking 11 appropriate steps to bring the program into compliance with 18.18.005 - 18.18.390 or 12 Medicare certification requirements. A licensee is entitled to a hearing conducted by 13 the office of administrative hearings [BEFORE THE DEPARTMENT] to appeal a 14 reduction to a provisional license under this subsection within seven days after the 15 order to reduce the license is issued. A licensee may appeal an adverse decision of the 16 department on an appeal of the order reducing the license to a provisional license to 17 the superior court. A program with a provisional license under this subsection may 18 not accept new clients. If the program fails to correct its deficiencies and does not 19 successfully appeal the order reducing the license to provisional status within the 20 period stipulated in the provisional license, the department shall revoke the license. 21 * Sec. 34. AS 18.60.093 is amended by adding a new subsection to read: 22 (g) The board shall request the chief administrative law judge (AS 44.64.020) 23 to appoint an administrative law judge employed or retained by the office of 24 administrative hearings to preside at a hearing conducted under this section. 25 AS 44.64.060 and 44.64.070 do not apply to the hearing. The administrative law 26 judge who presided at the hearing shall be present during the consideration of the case 27 and, if requested by board, shall assist and advise the board. A member of the board 28 who has not heard all of the evidence may not vote on the decision. 29 * Sec. 35. AS 18.67.020(f) is amended to read: 30 (f) After obtaining consent from the chief administrative law judge 31 (AS 44.64.020), the [THE] board may appoint one or more administrative law

01 judges employed or retained by the office of administrative hearings [HEARING 02 OFFICERS, WHO MUST BE LICENSED TO PRACTICE LAW IN THE STATE,] 03 to conduct hearings and take testimony in proceedings under this chapter, but final 04 determinations of any matter shall be only by the board. AS 44.64.060 and 44.64.070 05 do not apply to proceedings under this chapter. An administrative law judge [A 06 HEARING OFFICER] acting under this section shall report findings of fact and 07 conclusions of law to the board, together with the reasons for the findings and 08 conclusions. The board shall act only after consideration of the report and other 09 evidence that it considers appropriate. 10 * Sec. 36. AS 18.80.120 is amended by adding a new subsection to read: 11 (b) The commission shall request the chief administrative law judge 12 (AS 44.64.020) to appoint an administrative law judge employed or retained by the 13 office of administrative hearings to preside at a hearing conducted under this section. 14 AS 44.64.060 and 44.64.070 do not apply to the hearing. 15 * Sec. 37. AS 18.80.145(b) is amended to read: 16 (b) If, within the period allowed, [THE COMMISSION CONDUCTS] a 17 hearing is conducted and [REACHES] a decision is reached under AS 18.80.120 and 18 18.80.130, the decision of the commission is binding on the parties to the court action 19 as to all issues resolved in the hearing but not as to any issues not resolved in the 20 hearing. 21 * Sec. 38. AS 18.80.145(c) is amended to read: 22 (c) When proceedings in the superior court are deferred for a hearing and 23 decision [BY THE COMMISSION] under this section, the plaintiff may proceed, after 24 the decision of the commission, as an aggrieved party for the purpose of obtaining 25 judicial review under AS 18.80.135, whether or not the person was a party to, or 26 complainant in, the administrative [COMMISSION] proceedings. 27 * Sec. 39. AS 21.06.170(a) is amended to read: 28 (a) With respect to the subject of an examination, investigation, or hearing 29 being conducted by the director or an examiner, if general written authority has been 30 given the examiner by the director, the director or the examiner may subpoena 31 witnesses and administer oaths or affirmations and examine any person under oath,

01 and may compel the production of records, books, papers, contracts, and other 02 documents by attachments, if necessary. If, in connection with an examination of an 03 insurer, the director desires to examine an officer, director, or manager who is then 04 outside this state, the director is authorized to conduct and to enforce by appropriate 05 and available means an examination under oath in another state or a territory of the 06 United States in which the officer, director, or manager may then presently be, to the 07 full extent permitted by the laws of the other state or territory, this special 08 authorization considered. An administrative law judge from the office of 09 administrative hearings (AS 44.64.010) conducting a hearing under this title may, 10 in the course of the hearing, exercise the powers granted to the director under 11 this subsection. 12 * Sec. 40. AS 21.06.170(d) is amended to read: 13 (d) If a person disobeys or resists a lawful order of the administrative law 14 judge or director, refuses to respond to a subpoena, refuses to take oath or affirmation 15 as a witness, refuses to be examined, or is guilty of misconduct at a hearing or so near 16 the hearing as to obstruct the proceeding, the administrative law judge or director 17 shall certify the facts to the superior court where the hearing is held, and, upon 18 certification, the court shall issue an order directing the person to appear before the 19 court and show cause why the person should not be punished for contempt. 20 * Sec. 41. AS 21.06.180(b) is amended to read: 21 (b) The office of administrative hearings (AS 44.64.010) [DIRECTOR] shall 22 conduct [HOLD] a hearing on behalf of the director if required under 23 AS 44.64.030. Otherwise, the director shall conduct a hearing if required by a 24 provision of this title, or upon written demand to the director by a person aggrieved 25 by an act, threatened act, or failure of the director to act, or by a report, regulation, or 26 order of the director (other than an order for the holding of a hearing, or an order on 27 hearing or under it). A demand must specify the grounds to be relied upon at the 28 hearing as a basis for the relief. Unless postponed by mutual consent or for good 29 cause shown, the hearing shall be held within 30 days after receipt by the director of 30 the written demand. 31 * Sec. 42. AS 21.06.200 is amended to read:

01 Sec. 21.06.200. Notice of hearing. Not less than 20 days in advance, the 02 administrative law judge or director shall give notice of the time and place of the 03 hearing, stating the matters to be considered at the hearing. If the persons to be given 04 notice are not specified in the provision under which the hearing is held, the 05 administrative law judge or director shall give notice to all persons whose pecuniary 06 interests are to be directly and immediately affected by the hearing. 07 * Sec. 43. AS 21.06.210(a) is amended to read: 08 (a) The administrative law judge or director shall allow a party to the 09 hearing to appear in person and by counsel, to be present during the giving of all 10 evidence, to have a reasonable opportunity to inspect all documentary evidence and to 11 examine witnesses, to present evidence in support of the party's interest, and to have 12 subpoenas issued by the administrative law judge or director to compel attendance 13 of witnesses and production of evidence in the party's behalf. 14 * Sec. 44. AS 21.06.210(b) is amended to read: 15 (b) The administrative law judge or director shall permit to become a party 16 to the hearing by intervention, if timely, any person who was not an original party to 17 the proceeding and whose pecuniary interests are to be directly and immediately 18 affected by the director's order made upon the hearing. 19 * Sec. 45. AS 21.06.210(d) is amended to read: 20 (d) Upon written request seasonably made by a party to the hearing and at that 21 person's expense, the administrative law judge or director shall cause a full 22 stenographic record of the proceedings to be made by a competent reporter. If 23 transcribed, a copy of the stenographic record shall be furnished to the director, 24 without cost to the director or the state, and shall be a part of the director's record of 25 the hearing. If transcribed, a copy of the stenographic record shall be furnished to any 26 other party to the hearing at the request and expense of the other party. If no 27 stenographic record is made or transcribed, the administrative law judge or director 28 shall prepare an adequate record of the evidence and of the proceedings. 29 * Sec. 46. AS 21.06.210(f) is amended to read: 30 (f) If the parties agree, the administrative law judge or director may conduct 31 a hearing under this section by teleconference.

01 * Sec. 47. AS 21.06.210(h) is amended to read: 02 (h) The administrative law judge or director may close a hearing to the 03 public when the administrative law judge or director finds the closure is necessary to 04 protect a person against unwarranted injury or is in the public interest. 05 * Sec. 48. AS 21.06.220(a) is amended to read: 06 (a) In conducting the hearing, the administrative law judge or director shall 07 sit in a quasi-judicial capacity. Within 45 [30] days after termination of the hearing, 08 rehearing, or reargument, the director shall make an order on hearing, covering matters 09 involved in the hearing, rehearing, or reargument, and shall give a copy of the order to 10 the same persons given notice of the hearing. 11 * Sec. 49. AS 24.60.030 is amended by adding a new subsection to read: 12 (i) Except for supplying information requested by the hearing officer or the 13 individual, board, or commission with authority to make the final decision in the case, 14 or when responding to contacts initiated by the hearing officer or the individual, board, 15 or commission with authority to make the final decision in the case, a legislator or 16 legislative employee may not attempt to influence the outcome of an administrative 17 hearing by directly or indirectly contacting or attempting to contact the hearing officer 18 assigned to the hearing or the individual, board, or commission with authority to make 19 the final decision in the case unless the 20 (1) contact is made in the presence of all parties to the hearing or the 21 parties' representatives and the contact is made a part of the record; or 22 (2) fact and substance of the contact is promptly disclosed by the 23 legislator or legislative employee to all parties to the hearing and the contact is made a 24 part of the record. 25 * Sec. 50. AS 34.45.400(c) is amended to read: 26 (c) At the formal hearing, the administrative law judge from the office of 27 administrative hearings (AS 44.64.010) [DEPARTMENT] may subpoena witnesses 28 and may administer oaths and make inquiries necessary to determine the validity of 29 the claim. The person aggrieved may present arguments and evidence relevant to the 30 decision or action of the department. If, after the hearing, the department determines 31 that a correction is warranted, the department shall make the correction.

01 * Sec. 51. AS 36.30.015(d) is amended to read: 02 (d) An agency may not contract for the services of legal counsel without the 03 approval of the attorney general. An agency may not contract for the services of a 04 hearing officer or administrative law judge for a administrative, quasi-judicial 05 hearing without the approval of the attorney general and the chief administrative 06 law judge of the office of administrative hearings (AS 44.64.010). 07 * Sec. 52. AS 36.30.615 is amended to read: 08 Sec. 36.30.615. Hearing on protest appeal. A hearing on a protest appeal 09 shall be conducted in accordance with AS 36.30.670 and regulations adopted by the 10 commissioner to the extent the regulations do not conflict with regulations 11 adopted under AS 44.64.060. 12 * Sec. 53. AS 36.30.630(a) is amended to read: 13 (a) Except as provided in (b) of this section, a hearing shall be conducted 14 according to AS 36.30.670 and, to the extent they do not conflict with regulations 15 adopted under AS 44.64.060, regulations adopted by the commissioner of 16 administration on a contract claim appealed to the commissioner of administration or 17 the commissioner of transportation and public facilities or referred to either 18 commissioner under AS 36.30.620(f). 19 * Sec. 54. AS 36.30.635(a) is amended to read: 20 (a) After consultation with the using agency and the attorney general and after 21 a hearing conducted according to AS 36.30.670 and, to the extent they do not 22 conflict with regulations adopted under AS 44.64.060, regulations adopted by the 23 commissioner of administration, the commissioner of administration or the 24 commissioner of transportation and public facilities may debar a person for cause from 25 consideration for award of contracts. Notice of a debarment hearing shall be provided 26 in writing at least seven days before the hearing. The debarment may not be for a 27 period of more than three years. 28 * Sec. 55. AS 36.30.650 is amended to read: 29 Sec. 36.30.650. Hearing on a suspension. (a) A person suspended under 30 AS 36.30.635 is entitled to a hearing conducted according to AS 36.30.670 and, to the 31 extent that they do not conflict with regulations adopted under AS 44.64.060,

01 regulations adopted by the commissioner of administration if the person files a written 02 request for a hearing with the commissioner of administration or the commissioner of 03 transportation and public facilities, as appropriate, within seven days after receipt of 04 the notice of suspension under AS 36.30.645. 05 (b) If a suspended person requests a hearing, the commissioner of 06 administration or the commissioner of transportation and public facilities, as 07 appropriate, after consulting with the office of administrative hearings 08 (AS 44.64.010), shall schedule a prompt hearing unless the attorney general 09 determines that a hearing at the proposed time is likely to jeopardize an investigation. 10 A hearing may not be delayed longer than six months after notice of the suspension is 11 provided under AS 36.30.645. 12 * Sec. 56. AS 36.30.670(a) is amended to read: 13 (a) The chief administrative law judge (AS 44.64.010) [COMMISSIONER 14 OF ADMINISTRATION OR THE COMMISSIONER OF TRANSPORTATION 15 AND PUBLIC FACILITIES] shall assign an administrative law judge to act as a 16 hearing officer [OR APPOINT A HEARING OFFICER] for a hearing conducted 17 under this chapter. The hearing officer shall arrange for a prompt hearing and notify 18 the parties in writing of the time and place of the hearing. The hearing shall be 19 conducted in an informal manner. The provisions of AS 44.62 (Administrative 20 Procedure Act) do not apply to a hearing conducted under this chapter. 21 * Sec. 57. AS 36.30.675(a) is amended to read: 22 (a) The [IF THE COMMISSIONER OF ADMINISTRATION OR THE 23 COMMISSIONER OF TRANSPORTATION AND PUBLIC FACILITIES IS NOT 24 ACTING AS HEARING OFFICER, THE] hearing officer shall recommend a decision 25 to the commissioner of administration or the commissioner of transportation and 26 public facilities, as appropriate, based on the evidence presented. The 27 recommendation must include findings of fact and conclusions of law. 28 * Sec. 58. AS 39.25.120(c) is amended by adding a new paragraph to read: 29 (20) the chief administrative law judge and administrative law judges 30 of the Office of Administrative Hearings. 31 * Sec. 59. AS 39.52.120 is amended by adding a new subsection to read:

01 (e) Except for supplying information requested by the hearing officer or the 02 entity with authority to make the final decision in the case, or when responding to 03 contacts initiated by the hearing officer or the individual, board, or commission with 04 authority to make the final decision in the case, a public officer may not attempt to 05 influence the outcome of an administrative hearing by directly or indirectly contacting 06 or attempting to contact the hearing officer or individual, board, or commission with 07 authority to make the final decision in the case assigned to the hearing officer unless 08 the 09 (1) contact is made in the presence of all parties to the hearing or the 10 parties' representatives and the contact is made a part of the record; or 11 (2) fact and substance of the contact is promptly disclosed by the 12 public officer to all parties to the hearing and the contact is made a part of the record. 13 * Sec. 60. AS 39.52.350(c) is amended to read: 14 (c) If the subject of the accusation denies that a violation of this chapter has 15 occurred, the attorney general shall refer the matter to the personnel board, which 16 shall notify the chief administrative law judge (AS 44.64.010), who shall appoint 17 an administrative law judge to serve as a hearing officer to conduct a hearing. 18 * Sec. 61. AS 40.25.100(a) is amended to read: 19 (a) Information in the possession of the Department of Revenue that discloses 20 the particulars of the business or affairs of a taxpayer or other person is not a matter of 21 public record, except as provided in AS 43.05.230(i) or for purposes of investigation 22 and law enforcement. The information shall be kept confidential except when its 23 production is required in an official investigation, administrative adjudication under 24 AS 43.05.405 - 43.05.499 [AS 43.05.400 - 43.05.499], or court proceeding. These 25 restrictions do not prohibit the publication of statistics presented in a manner that 26 prevents the identification of particular reports and items, prohibit the publication of 27 tax lists showing the names of taxpayers who are delinquent and relevant information 28 that may assist in the collection of delinquent taxes, or prohibit the publication of 29 records, proceedings, and decisions under AS 43.05.405 - 43.05.499 [AS 43.05.400 - 30 43.05.499]. 31 * Sec. 62. AS 43.05.010(8) is amended to read:

01 (8) except as provided in AS 43.05.405 - 43.05.499 and in 02 AS 44.64.030 [AS 43.05.400 - 43.05.499], hear and determine appeals of a matter 03 within the jurisdiction of the Department of Revenue and enter orders on the appeals 04 that are final unless reversed or modified by the courts; 05 * Sec. 63. AS 43.05.230(a) is amended to read: 06 Sec. 43.05.230. Disclosure of tax returns and reports. (a) It is unlawful for 07 a current or former officer, employee, or agent of the state to divulge the amount of 08 income or the particulars set out or disclosed in a report or return made under this title, 09 except 10 (1) in connection with official investigations or proceedings of the 11 department, whether judicial or administrative, involving taxes due under this title; 12 (2) in connection with official investigations or proceedings of the 13 child support enforcement agency, whether judicial or administrative, involving child 14 support obligations imposed or imposable under AS 25 or AS 47; 15 (3) as provided in AS 38.05.036 pertaining to audit functions of the 16 Department of Natural Resources; 17 (4) as provided in AS 43.05.405 - 43.05.499 [AS 43.05.400 - 18 43.05.499]; and 19 (5) as otherwise provided in this section. 20 * Sec. 64. AS 43.05.241 is amended to read: 21 Sec. 43.05.241. Administrative appeal. For a matter within the jurisdiction 22 of the office of administrative hearings (AS 44.64) [TAX APPEALS] under 23 AS 43.05.405, the taxpayer aggrieved by an informal conference decision entered 24 under AS 43.05.240 may file with the office of administrative hearings [TAX 25 APPEALS] a notice of appeal for formal hearing, as provided in AS 43.05.430, no 26 later than 30 days after service of the decision resulting from an informal conference. 27 * Sec. 65. AS 43.05.242(i) is amended to read: 28 (i) If it is determined that appeal was improperly filed under this section, the 29 appeal shall be transferred to the office of administrative hearings (AS 44.64) [TAX 30 APPEALS] for further proceedings under AS 43.05.405 - 43.05.499 [AS 43.05.400 - 31 43.05.499].

01 * Sec. 66. AS 43.05.405 is amended to read: 02 Sec. 43.05.405. Jurisdiction. The office [OF TAX APPEALS] has original 03 jurisdiction to hear formal appeals from informal conference decisions of the 04 Department of Revenue under AS 43.05.240. Appeal to the office may be taken only 05 from an informal conference decision under AS 43.05.240. AS 44.64.060 does not 06 apply to an administrative hearing under the jurisdiction of the office under this 07 section. Jurisdiction of the office under this section is limited to, and AS 43.05.405 - 08 43.05.499 and AS 44.64.070 apply [AS 43.05.400 - 43.05.499 APPLIES] to and 09 govern [GOVERNS], an administrative appeal regarding 10 (1) electric and telephone cooperative taxes under AS 10.25; 11 (2) a seafood marketing assessment under AS 16.51; 12 (3) all taxes levied under AS 43, except the property tax assessed 13 under AS 43.56; and 14 (4) any other taxes administered by the Department of Revenue. 15 * Sec. 67. AS 43.05.420(b) is repealed and reenacted to read: 16 (b) In addition to qualifications under AS 44.64.040, an administrative law 17 judge who conducts a proceeding under AS 43.05.405 - 43.05.499 shall have at least 18 four years of professional experience as a tax attorney, a certified public accountant 19 practicing in the area of tax, or a tax administrator. 20 * Sec. 68. AS 43.05.420(c) is amended to read: 21 (c) The chief administrative law judge may adopt regulations implementing or 22 interpreting AS 43.05.405 - 43.05.499 [AS 43.05.400 - 43.05.499], including rules of 23 procedure and evidence for proceedings before the office. 24 * Sec. 69. AS 43.05.435 is amended to read: 25 Sec. 43.05.435. Scope and standards for decision. The administrative law 26 judge shall hear all questions de novo under AS 43.05.405 - 43.05.499 [AS 43.05.400 27 - 43.05.499]. The administrative law judge shall 28 (1) resolve a question of fact by a preponderance of the evidence or, if 29 a different standard of proof has been set by law for a particular question, by that 30 standard of proof; 31 (2) resolve a question of law in the exercise of the independent

01 judgment of the administrative law judge; 02 (3) defer to the Department of Revenue as to a matter for which 03 discretion is legally vested in the Department of Revenue, unless not supported by a 04 reasonable basis. 05 * Sec. 70. AS 43.05.440 is amended to read: 06 Sec. 43.05.440. Service of documents. Service of documents required under 07 AS 43.05.405 - 43.05.499 [AS 43.05.400 - 43.05.499] may be accomplished in any 08 manner authorized under the Alaska Rules of Civil Procedure. If service is done only 09 by mail, the date of service is determined by the date of mailing. If service is done by 10 both mail and hand delivery, the date of service is determined by the earlier of the date 11 of mailing or actual receipt of the documents. 12 * Sec. 71. AS 43.05.470(a) is amended to read: 13 (a) Records, proceedings, and decisions under AS 43.05.405 - 43.05.499 14 [AS 43.05.400 - 43.05.499] are confidential, except that the records, proceedings, and 15 decisions become public records and open to the public when the final administrative 16 decision is issued and becomes final. 17 * Sec. 72. AS 43.05.475 is amended to read: 18 Sec. 43.05.475. Consistency of decisions. (a) As to questions of law, a final 19 administrative decision issued under AS 43.05.405 - 43.05.499 [AS 43.05.400 - 20 43.05.499], unless reversed or overruled, has the force of legal precedent. 21 (b) To promote consistency among legal determinations issued under 22 AS 43.05.405 - 43.05.499 [AS 43.05.400 - 43.05.499], the chief administrative law 23 judge may review and circulate among the other administrative law judges the drafts 24 of formal decisions, decisions upon reconsideration, and other legal opinions of the 25 other administrative law judges in the office. The drafts are confidential documents 26 and are not subject to disclosure under AS 40.25.100 - 40.25.220 or this chapter. 27 * Sec. 73. AS 43.05.480(a) is amended to read: 28 (a) Judicial review by the superior court of a final administrative decision may 29 be had by a party to the appeal under AS 43.05.405 - 43.05.499 [AS 43.05.400 - 30 43.05.499] by filing a notice of appeal in accordance with the applicable rules of court 31 governing appeals to that court in civil matters. The notice of appeal shall be filed

01 within 30 days after an administrative decision becomes final under AS 43.05.465. 02 The right to judicial review under this subsection is not affected by the failure to seek 03 reconsideration before the administrative law judge. 04 * Sec. 74. AS 43.05.499 is amended to read: 05 Sec. 43.05.499. Definitions. In AS 43.05.405 - 43.05.499 [AS 43.05.400 - 06 43.05.499], unless the context otherwise requires, 07 (1) "administrative law judge" means an administrative law judge 08 employed or retained by the office [APPOINTED UNDER AS 43.05.410]; 09 (2) "commissioner" means the commissioner of administration; 10 (3) "department" means the Department of Administration; 11 (4) "discovery" means the use of subpoenas, subpoenas duces tecum, 12 interrogatories, requests for production, requests for admission, depositions, and other 13 methods of civil procedure by which one party to an action may discover information 14 within the knowledge and control of another person; 15 (5) "legislative history" means the documents of the legislature 16 recording the background and events, including draft bills, correspondence and 17 memoranda, committee reports, tapes and transcripts of hearings, and tapes and 18 transcripts of floor debate concerning consideration of a bill; 19 (6) "office" means office of administrative hearings (AS 44.64) 20 [TAX APPEALS IN THE DEPARTMENT]; 21 (7) "party" means the Department of Revenue or the taxpayer; 22 (8) "proceeding" means only a proceeding under the jurisdiction of the 23 office; 24 (9) "subpoena" means a command to appear at a certain time and place 25 to testify, or to appear at a certain time and place to produce books, papers, and other 26 things, and testify; 27 (10) "tax" means a tax described in AS 43.05.405, including a seafood 28 marketing assessment under AS 16.51; 29 (11) "taxpayer" means a person required to pay a tax, including a 30 person required to pay a seafood marketing assessment under AS 16.51. 31 * Sec. 75. AS 43.55.040 is amended to read:

01 Sec. 43.55.040. Powers of Department of Revenue. Except as provided in 02 AS 43.05.405 - 43.05.499 [AS 43.05.400 - 43.05.499], the department may 03 (1) require a person engaged in production and the agent or employee 04 of the person, and the purchaser of oil or gas, or the owner of a royalty interest in oil 05 or gas to furnish additional information that is considered by the department as 06 necessary to compute the amount of the tax; 07 (2) examine the books, records, and files of such a person; 08 (3) conduct hearings and compel the attendance of witnesses and the 09 production of books, records, and papers of any person; and 10 (4) make an investigation or hold an inquiry that is considered 11 necessary to a disclosure of the facts as to 12 (A) the amount of production from any oil or gas location, or of 13 a company or other producer of oil or gas; and 14 (B) the rendition of the oil and gas for taxing purposes. 15 * Sec. 76. AS 43.70.075(m) is amended to read: 16 (m) The department may initiate suspension of a business license endorsement 17 or the right to obtain a business license endorsement under this section by sending the 18 person subject to the suspension a notice by certified mail, return receipt requested, or 19 by delivering the notice to the person. The notice must contain information that 20 informs the person of the grounds for suspension, the length of any suspension sought, 21 and the person's right to administrative review [BEFORE THE DEPARTMENT]. A 22 suspension begins 30 days after receipt of notice described in this subsection unless 23 the person delivers a timely written request for a hearing to the department in the 24 manner provided by regulations of the department. If a hearing is requested under this 25 subsection, a hearing officer of the office of administrative hearings (AS 44.64.010) 26 [DEPARTMENT] shall determine the issues by using the preponderance of the 27 evidence test and shall, to the extent they do not conflict with regulations adopted 28 under AS 44.64.060, conduct the hearing in the manner provided by regulations of the 29 department. A hearing under this subsection is limited to the following questions: 30 (1) was the person holding the business license endorsement, or an 31 agent or employee of the person while acting within the scope of the agency or

01 employment of the person, convicted by plea or judicial finding of violating 02 AS 11.76.100, 11.76.106, or 11.76.107; 03 (2) if the department does not allege a conviction of AS 11.76.100, 04 11.76.106, or 11.76.107, did the person, or an agent or employee of the person while 05 acting within the scope of the agency or employment of the person, violate a provision 06 of (a) or (g) of this section; 07 (3) within the 24 months before the date of the department's notice 08 under this subsection, was the person, or an agent or employee of the person while 09 acting within the scope of the agency or employment of the person, convicted of 10 violating AS 11.76.100, 11.76.106, or 11.76.107 or adjudicated for violating a 11 provision of (a) or (g) of this section. 12 * Sec. 77. AS 43.70.075(q) is amended to read: 13 (q) The department may adopt regulations that do not conflict with 14 regulations adopted under AS 44.64.010 to establish an administrative hearing 15 process for actions taken [BY THE DEPARTMENT] under this section. AS 44.62 16 (Administrative Procedure Act) does not apply to a hearing under this section. 17 * Sec. 78. AS 44.62.350(a) is amended to read: 18 (a) The governor shall assign a qualified, unbiased, and impartial hearing 19 officer, with experience in the general practice of law, to conduct hearings under this 20 chapter that are not conducted by the office of administrative hearings 21 (AS 44.64.010). A [. THE] hearing officer may perform other duties in connection 22 with the administration of this chapter and other laws. 23 * Sec. 79. AS 44.62.450(a) is amended to read: 24 (a) A hearing in a contested case shall be presided over by a hearing officer. 25 Unless the hearing is conducted by the office of administrative hearings 26 (AS 44.64.010), the [THE] agency itself shall determine whether the hearing officer 27 hears the case alone or whether the agency hears the case with the hearing officer. 28 * Sec. 80. AS 44.62.500(b) is amended to read: 29 (b) If a contested case is heard by a hearing officer alone, the hearing officer 30 shall prepare a proposed decision in a form that may be adopted as the decision in the 31 case. A copy of the proposed decision shall be filed by the agency as a public record

01 with the lieutenant governor, and a copy of the proposed decision shall be served by 02 the agency on each party in the case and the party's attorney. Except as otherwise 03 provided in AS 44.64.060(e), for a hearing conducted by the office of 04 administrative hearings, the [THE] agency itself may adopt the proposed decision in 05 its entirety, or may reduce the proposed penalty and adopt the balance of the proposed 06 decision. 07 * Sec. 81. AS 44.62.500(c) is amended to read: 08 (c) If the proposed decision is not adopted as provided in (b) of this section the 09 agency may decide the case upon the record, including the transcript, with or without 10 taking additional evidence, or may refer the case to the same or another hearing officer 11 to take additional evidence. If the case is so assigned the hearing officer shall prepare 12 a proposed decision as provided in (b) of this section upon the additional evidence and 13 the transcript and other papers that are part of the record of the earlier hearing. A copy 14 of the proposed decision shall be furnished to each party and the party's attorney as 15 prescribed by (b) of this section. The agency may not decide a case provided for in 16 this subsection without giving the parties the opportunity to present either oral or 17 written argument before the agency. If additional oral evidence is introduced before 18 the agency, an agency member may not vote unless that member has heard the 19 additional oral evidence. This subsection does not apply to a hearing conducted by 20 the office of administrative hearings. 21 * Sec. 82. AS 44.64.030(a), added by sec. 3 of this Act, is amended to read: 22 (a) The office shall conduct all adjudicative administrative hearings required 23 under the following statutes or under regulations adopted to implement the statutes: 24 (1) AS 04.11.510(b)(1) and (c) (alcoholic beverages license); 25 (2) AS 05.15 (charitable gaming); 26 (3) AS 05.20 (recreational devices); 27 (4) AS 05.90.001 (special racing events); 28 (5) AS 06 (banks and financial institutions); 29 (6) AS 08 (occupational licensing), other than AS 08.08 and 30 AS 08.62.046; 31 (7) AS 10.06 (Alaska Corporations Code);

01 (8) AS 10.13 (Alaska BIDCO Act); 02 (9) AS 10.25.375 (Electric and Telephone Cooperative Act); 03 (10) AS 10.50.408 (limited liability companies); 04 (11) AS 14.11.016 (education-related facility grants); 05 (12) AS 14.18 (discrimination in public education); 06 (13) AS 14.48 (postsecondary educational institutions); 07 (14) AS 17.20 (Alaska Food, Drug, and Cosmetic Act), other than 08 AS 17.20.060 and 17.20.360; 09 (15) AS 18.18.030 (hospice licenses); 10 (16) AS 18.20 (hospitals and nursing facilities), other than 11 AS 18.20.180; 12 (17) AS 18.35.040 (tourist accommodations); 13 (18) AS 21.09, AS 21.22.190, AS 21.27, AS 21.34, AS 21.36, 14 AS 21.69, AS 21.86.200, AS 21.87, and AS 21.89 (insurance); 15 (19) AS 25.27 (child support enforcement); 16 (20) AS 32.06 (Uniform Partnership Act); 17 (21) AS 34.45 (unclaimed property); 18 (22) AS 34.55.024 and 34.55.026 (Uniform Land Sales Practices Act); 19 (23) AS 36.30 (State Procurement Code), other than 20 AS 36.30.627(a)(2); 21 (24) AS 38.05.065 (contracts for sale of state land); 22 (25) AS 39.52 (Alaska Executive Branch Ethics Act); 23 (26) AS 43.23 (permanent fund dividends); 24 (27) AS 43.70 (Alaska Business License Act); 25 (28) AS 44.50 (notaries public); 26 (29) AS 44.77 (claims against the state); 27 (30) AS 45.30.040 (mobile homes); 28 (31) AS 45.55 (Alaska Securities Act); 29 (32) AS 45.57 (Takeover Bid Disclosure Act); 30 (33) AS 46 (water, air, energy, and environmental conservation), 31 other than AS 46.03.820, 46.03.850, AS 46.39, and AS 46.40;

01 (34) AS 47.33 (assisted living homes); 02 (35) [(34)] AS 47.35 (child care); 03 (36) [(35)] AS 47.45 (longevity bonuses). 04 * Sec. 83. AS 44.77.040(a) is amended to read: 05 (a) The Department of Administration, after consulting with the office of 06 administrative hearings (AS 44.64.010), shall fix a time for hearing the appeal and 07 shall notify the claimant and the officer who approved the voucher and give them a 08 reasonable opportunity to be heard. The hearing shall be conducted by the office of 09 administrative hearings. 10 * Sec. 84. AS 45.30.040(c) is amended to read: 11 (c) Whenever it determines that there may be a violation of the provisions of 12 this chapter by a manufacturer or dealer of mobile homes, the department may give 13 notice of hearing, and, within 30 days after giving notice, [HOLD] a hearing shall be 14 held by the office of administrative hearings (AS 44.64.010) to determine whether 15 there has been a violation. After notice and hearing, 16 (1) if the department finds that there has been a violation of the 17 provisions of this chapter, the department may issue an order directing that the person 18 who is violating the provision cure the violation in a reasonable time and in a 19 reasonable manner; 20 (2) if the department determines that violations of the provisions of 21 this chapter are regular and recurring, it may require forfeiture of the bond to the 22 benefit of the state and arrange for distribution of the proceeds of the bond to the 23 mobile home owners injured by the activities of the dealer or manufacturer, or to 24 mobile home dealers injured by the activities of the manufacturer. 25 * Sec. 85. AS 45.55.935 is amended to read: 26 Sec. 45.55.935. Hearings. (a) The administrator shall adopt regulations, 27 consistent with the provisions of this chapter and with regulations adopted under 28 AS 44.64.060, governing administrative hearings conducted by the office of 29 administrative hearings (AS 44.64.010) [ADMINISTRATOR OR A DESIGNEE OF 30 THE ADMINISTRATOR] for the following: 31 (1) orders issued under AS 45.55.120, 45.55.900(d), or 45.55.920; in

01 these instances, the administrator shall promptly send a notice of opportunity for 02 hearing to the issuer of the securities and to all persons who have filed with the 03 department a notice of intention to sell the securities; and 04 (2) orders issued under AS 45.55.060; before the administrator enters 05 an order under AS 45.55.060, the administrator shall send to the person involved a 06 notice of opportunity for hearing; if the person involved is an agent or investment 07 adviser representative, then the administrator shall, in addition, notify the employing 08 broker-dealer, state investment adviser, federal covered adviser, or issuer. 09 (b) In conducting a hearing in accordance with (a) of this section, the 10 administrative law judge [ADMINISTRATOR] may issue a subpoena to compel the 11 attendance of any witness or party and to compel production of evidence. 12 * Sec. 86. AS 45.55.950(e) is amended to read: 13 (e) Every hearing in an administrative proceeding shall be public unless the 14 administrative law judge, [ADMINISTRATOR] in the exercise of discretion, grants 15 a request joined in by all the respondents that the hearing be conducted privately. 16 * Sec. 87. AS 45.57.020(a) is amended to read: 17 (a) An offeror may not make a takeover bid unless at least 20 days before the 18 bid the offeror files with the department and with the registered agent of the offeree 19 company a statement containing all the information required by (c) of this section and 20 either 21 (1) within 10 days following the filing no hearing has been ordered by 22 the department or requested by the offeree company; or 23 (2) a hearing has been ordered within that time and, after [UPON] the 24 hearing conducted by the office of administrative hearings (AS 44.64.010), the 25 department has decided [ADJUDICATED] that the offeror proposed to make fair, 26 full, and effective disclosure to offerees of all information material to a decision to 27 accept or reject the offer. 28 * Sec. 88. AS 45.57.020(b) is amended to read: 29 (b) A hearing shall begin within 20 days of the date of filing of the statement, 30 and adjudication shall be made within 30 days of the filing unless extended by the 31 administrative law judge [DEPARTMENT] for the convenience of the parties or

01 protection of the offerees. 02 * Sec. 89. AS 46.15.065(c) is amended to read: 03 (c) The commissioner shall make investigations as necessary of rights asserted 04 by declarations filed under this section and shall determine each existing appropriation 05 and mail a summary of the determination to each person who has filed a declaration 06 with respect to the specified area or source. Any person adversely affected by a 07 determination may file with the commissioner a request for a hearing within 20 days 08 of the date the notice is mailed. If a hearing is requested, the commissioner shall, 09 after consulting with the office of administrative hearings (AS 44.64.010), send a 10 notice of the time and place of the hearing to each person who has filed a declaration. 11 * Sec. 90. AS 47.45.050 is amended to read: 12 Sec. 47.45.050. Department hearing. The Department of Health and Social 13 Services may arrange with the office of administrative hearings (AS 44.64.010) to 14 hold a [DEPARTMENTAL] hearing upon the request of an applicant or recipient who 15 has been disqualified. Before this hearing the department shall by certified mail notify 16 an applicant or recipient in plain and comprehensive language the exact reason for the 17 disqualification. Form letters using only referral to state statutes or department 18 regulations, or otherwise vague in detail, are not considered compliance by the 19 department with this section. 20 * Sec. 91. AS 39.25.110(31); AS 43.05.400, 43.05.410, 43.05.415, 43.05.420(a), and 21 43.05.425 are repealed. 22 * Sec. 92. The uncodified law of the State of Alaska is amended by adding a new section to 23 read: 24 APPLICABILITY. (a) Sections 1 - 81, 83 - 88, 90, and 91 of this Act apply to 25 administrative proceedings that begin on or after July 1, 2005. 26 (b) Sections 82 and 89 of this Act apply to administrative proceedings that begin on 27 or after July 1, 2007. 28 * Sec. 93. The uncodified law of the State of Alaska is amended by adding a new section to 29 read: 30 REGULATIONS. The chief administrative law judge and any agency affected by this 31 Act may proceed to adopt regulations to implement this Act. A regulation adopted under this

01 section takes effect under AS 44.62 (Administrative Procedure Act) but not before the 02 effective date of the law implemented by the regulation. 03 * Sec. 94. The uncodified law of the State of Alaska is amended by adding a new section to 04 read: 05 TRANSITION. (a) Litigation, hearings, investigations, and other proceedings 06 pending under a law amended or repealed by this Act, or in connection with functions 07 transferred by this Act, continue in effect and may be continued and completed, 08 notwithstanding a transfer, amendment, or repeal provided for in this Act. 09 (b) Certificates, orders, and regulations issued or adopted under authority of a law 10 amended or repealed by this Act remain in effect for the term issued, or until revoked, 11 vacated, or otherwise modified under the provisions of this Act. 12 (c) Contracts, rights, liabilities, and obligations created by or under a law amended or 13 repealed on July 1, 2005, by this Act and in effect on July 1, 2005, remain in effect. 14 Contracts, rights, liabilities, and obligations created by or under a law amended or repealed on 15 July 1, 2007, by this Act and in effect on July 1, 2007, remain in effect. 16 (d) If, before July 1, 2005, there is vacancy in the office of chief administrative law 17 judge of the office of tax appeals, the commissioner of administration may refer a case to a 18 hearing officer for a hearing under AS 43.05.400 - 43.05.499. 19 (e) Upon the initial appointment of the chief administrative law judge under 20 AS 44.64.010(c), added by sec. 2 of this Act, the chief administrative law judge and the 21 commissioner of administration, the commissioner of community and economic development, 22 the commissioner of revenue, and the governor's office shall identify administrative law 23 judges and support staff to be transferred to the office of administrative hearings on or after 24 January 1, 2005. A state employee who is transferred under this section from another agency 25 to the office of administrative hearings shall continue to be compensated at the same range 26 and step of the salary schedule in AS 39.27.011(a) that the employee was receiving before the 27 transfer, and qualifies for salary increases authorized under AS 39.27.011 and 39.27.022. 28 (f) Procedural regulations of an agency that refers an administrative hearing to the 29 office of administrative hearings shall apply to the hearing until regulations adopted under 30 AS 44.64.060(a), added by sec. 3 of this Act, become effective. 31 * Sec. 95. Sections 1, 2, 93, and 94 of this Act take effect immediately under

01 AS 01.10.070(c). 02 * Sec. 96. Sections 82 and 89 of this Act take effect July 1, 2007. 03 * Sec. 97. Except as provided in secs. 95 and 96 of this Act, this Act takes effect July 1, 04 2005.