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SB 101: "An Act making corrective amendments to the Alaska Statutes as recommended by the revisor of statutes; and providing for an effective date."

00 SENATE BILL NO. 101 01 "An Act making corrective amendments to the Alaska Statutes as recommended by the 02 revisor of statutes; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 04.11.210(c) is amended to read: 05 (c) In this section, "recreational site" includes [MEANS, BUT IS NOT 06 LIMITED TO,] a location where baseball games, car races, hockey games, dog sled 07 racing events, or curling matches are regularly held during a season. 08 * Sec. 2. AS 06.50.020(a) is amended to read: 09 (a) To qualify for a license, an applicant shall 10 (1) have cash assets of at least $25,000, as determined under generally 11 accepted accounting principles, except that an applicant who wants to engage in the 12 business of making advances at more than one location in the state shall have cash 13 assets of at least $25,000 for each location; 14 (2) demonstrate the financial responsibility, financial condition,

01 business experience, character, and general fitness that reasonably warrant the 02 department's belief that the applicant's business will be conducted lawfully and fairly; 03 when determining whether this qualification has been met, and for the purpose of 04 investigating compliance with this chapter, the department may review 05 (A) the relevant business records of the applicant and the 06 adequacy of the capital of the applicant; 07 (B) the competence, experience, integrity, and financial ability 08 of the applicant, and, if the applicant is an entity, of any person who is a 09 member, partner, director, senior officer, or owner of 10 percent or more of the 10 equity of the applicant; and 11 (C) a record [OF CONVICTION], on the part of the applicant 12 or a person described in (B) of this paragraph, of 13 (i) a conviction for criminal activity, fraud, or other act 14 of personal dishonesty; 15 (ii) an act, an omission, or a practice that constitutes a 16 breach of a fiduciary duty; or 17 (iii) a suspension, a revocation, a removal, or an 18 administrative act by an agency or a department of the United States or 19 a state from participation in the conduct of a business; 20 (3) if the person has a physical business location in the state, have a 21 physical business location that is accessible by and convenient to the public; 22 (4) have a current business license issued under AS 43.70; and 23 (5) if applicable, have a certificate of incorporation under 24 AS 10.06.218, have a certificate of authority under AS 10.06.705, have a copy of 25 articles of organization that satisfies AS 10.50.090, be registered under AS 10.50.605, 26 have a statement of foreign qualification filed under AS 32.06.922, have a certificate 27 of limited partnership filed under AS 32.11.060, or be registered under AS 32.11.420. 28 * Sec. 3. AS 10.06.960(a) is amended to read: 29 (a) A corporation organized under 43 U.S.C. 1601 et seq. [43 U.S.C. 1601 - 30 1629e] as amended (Alaska Native Claims Settlement Act) shall be incorporated under 31 and is subject to this chapter except

01 (1) each corporation shall issue without further consideration the 02 number of shares of common stock that may be necessary to comply with the 03 requirements of the Act [ACT] and all stock so issued is considered fully paid and 04 nonassessable when issued; 05 (2) unless otherwise provided in the articles of incorporation, the 06 capital 07 (A) is considered the consideration for the initial issuance of 08 shares; and 09 (B) of a corporation organized under the Act [ACT] includes 10 the 11 (i) land or interests in it conveyed to the corporation by 12 the United States under the Act [ACT], except that which is required to 13 be conveyed under 43 U.S.C. 1613(c)(1), (3), and (4), entered at its fair 14 value to the corporation upon receiving the conveyance of it; and 15 (ii) money, when received under 43 U.S.C. 1605 and 43 16 U.S.C. 1608, that is retained by the corporation and that is not 17 immediately distributed or required to be distributed under 43 U.S.C. 18 1606(j). 19 * Sec. 4. AS 10.06.960(b) is amended to read: 20 (b) Notwithstanding the provision of AS 10.06.305 - 10.06.390, payment from 21 the money of a corporation organized under the act that is required by the language of 22 the Act [ACT] to be distributed to shareholders or to other corporations so organized 23 is not a distribution to its shareholders as defined in AS 10.06.990. 24 * Sec. 5. AS 10.06.960(c) is amended to read: 25 (c) Notwithstanding the provisions of AS 10.06.546, a plan of merger, 26 consolidation, or exchange in which each participating corporation either (1) was 27 organized under the Act [ACT], within the same one of the 12 regions of Alaska 28 established under the Act [ACT], or (2) resulted from the prior merger, consolidation, 29 or exchange of other similarly organized corporations within the same region, is 30 approved if it receives the affirmative vote of the holders of at least a majority of the 31 outstanding shares of each corporation. If a class of shares of a corporation specified

01 in this subsection is entitled to vote as a class, the plan of merger, consolidation, or 02 exchange is approved if it receives the affirmative vote of the holders of at least a 03 majority of the outstanding shares of each class of shares entitled to vote as a class and 04 of the total outstanding shares. Notwithstanding AS 10.06.574 - 10.06.582, a plan of 05 merger, consolidation, or exchange approved under this section before December 19, 06 1991, may not include a right of shareholders to dissent. 07 * Sec. 6. AS 10.06.960(e) is amended to read: 08 (e) Notwithstanding the provision of AS 10.06.502 - 10.06.510, a corporation 09 organized under the Act [ACT] may amend its articles by a vote of the board of 10 directors in order for the corporation to comply with the mandatory requirements of 11 the Act [ACT]. 12 * Sec. 7. AS 10.06.960(f) is amended to read: 13 (f) Notwithstanding the other provisions of this chapter, a corporation 14 organized under the Act [ACT] is governed by the Act [ACT] to the extent the Act 15 [ACT] is inconsistent with this chapter, and the corporation may take any action, 16 including amendment of its articles, authorized by the Act [ACT], and the action is 17 considered to be approved and adopted if approved under the Act [ACT]. An 18 amendment approved under the Act [ACT] and delivered to the commissioner under 19 AS 10.06.512 shall be filed by the commissioner under AS 10.06.910, and a certificate 20 of amendment shall be issued. 21 * Sec. 8. AS 10.06.960(g) is amended to read: 22 (g) Notwithstanding AS 10.06.358, if there are no retained earnings, the 23 directors of a corporation organized under the Act [ACT] may declare and pay 24 distributions in cash or property out of its net profits for the fiscal year in which the 25 distribution is declared and for the preceding fiscal year, except when the corporation 26 is insolvent under AS 10.06.360. For the purposes of this subsection, a corporation's 27 debts include the amounts it is required to distribute under 43 U.S.C. 1606(i) and 43 28 U.S.C. 1606(j). The directors may determine the net profits derived from the 29 exploitation or liquidation of wasting assets without consideration of the depletion of 30 those assets resulting from lapse of time, consumption, liquidation, or exploitation, of 31 the assets, and a distribution declared from those net profits shall be described,

01 concurrently with distribution of the net profits to shareholders, as a distribution from 02 wasting assets without consideration of the depletion of the assets. In this subsection, 03 "wasting assets" means timber resources and subsurface estates. 04 * Sec. 9. AS 10.06.960(h) is amended to read: 05 (h) Notwithstanding AS 10.06.358, the directors of a corporation organized 06 under the Act [ACT] may, from time to time, distribute to its shareholders in partial 07 liquidation a portion of the corporation's assets out of capital, in cash or property, 08 except that a distribution 09 (1) may not be made at a time when the corporation is insolvent under 10 AS 10.06.360; 11 (2) may not be made unless the articles of incorporation authorize the 12 board to make the distribution or the distribution is authorized by the affirmative vote 13 of the holders of at least two-thirds of the outstanding shares; 14 (3) when made, shall be identified as a distribution in partial 15 liquidation and the amount per share shall be disclosed to the shareholders 16 concurrently with the distribution. 17 * Sec. 10. AS 10.06.960(i) is amended to read: 18 (i) Notwithstanding AS 10.06.633(e), a corporation that is organized as a 19 Native corporation under the Act [ACT], that has been involuntarily dissolved by the 20 commissioner under AS 10.06.633, and that has failed to apply for reinstatement 21 during the period established under AS 10.06.633(e), may be reinstated under 22 AS 10.06.633(e) within one year of June 29, 1994. The reinstated corporation and its 23 shareholders have all of the rights, privileges, liabilities, and obligations that would 24 have applied to them if the corporation had not been dissolved, and all corporate and 25 shareholder actions taken during the period of dissolution are considered to be as valid 26 as if dissolution had not occurred. 27 * Sec. 11. AS 10.06.960(k) is amended to read: 28 (k) Notwithstanding (i) of this section and AS 10.06.633(e), a corporation that 29 is organized as a Native village corporation under the Act [ACT], that has been 30 involuntarily dissolved by the commissioner under AS 10.06.633, and that has failed 31 to apply for reinstatement during the period established under AS 10.06.633(e) may be

01 reinstated under AS 10.06.633(e) on or before December 31, 2003. The reinstated 02 corporation and its shareholders have all of the rights, privileges, liabilities, and 03 obligations that would have applied to them if the corporation had not been dissolved, 04 and all corporate and shareholder actions taken during the period of dissolution are 05 considered to be as valid as if dissolution had not occurred. If a corporation elects to 06 reinstate under this subsection and if the corporation's previously used corporate name 07 is no longer available for use by the corporation, then, notwithstanding AS 10.06.502 - 08 10.06.510, an amendment to the articles of incorporation changing the previously used 09 corporate name may be adopted by action of the corporation's board of directors alone. 10 * Sec. 12. AS 10.06.960(n) is amended to read: 11 (n) Notwithstanding AS 10.06.504(d), an amendment to the articles of 12 incorporation of a corporation organized under 43 U.S.C. 1601 et seq. [43 U.S.C. 13 1601 - 1628] (Alaska Native Claims Settlement Act) and incorporated under former 14 AS 10.05.005 to add a provision eliminating or limiting the personal liability of a 15 director to the corporation or its stockholders for monetary damages under 16 AS 10.06.210(1)(N) may be adopted by the affirmative vote of a majority of the shares 17 represented at the regular or special meeting at which a quorum is present in person or 18 by proxy. 19 * Sec. 13. AS 10.06.960(o) is amended to read: 20 (o) Notwithstanding AS 10.06.455(b) and 10.06.504(d), an amendment to the 21 articles of incorporation of a village corporation organized under 43 U.S.C. 1601 et 22 seq. [43 U.S.C. 1601 - 1629e] (Alaska Native Claims Settlement Act) and 23 incorporated under former AS 10.05.005 to add a provision authorizing the 24 classification of directors under AS 10.06.455 may be adopted by the affirmative vote 25 of a majority of the shares represented at a regular or special meeting at which a 26 quorum is present in person or by proxy. 27 * Sec. 14. AS 10.06.960(p) is amended to read: 28 (p) In this section, 29 (1) "Act [ACT]" means 43 U.S.C. 1601 et seq. [43 U.S.C. 1601 - 30 1641] (Alaska Native Claims Settlement Act); 31 (2) "Native corporation" has the meaning given in 43 U.S.C. 1602(m).

01 * Sec. 15. AS 10.06.961(a) is amended to read: 02 (a) Notwithstanding AS 13.46.085 or the appointment of a guardian of the 03 property of the child under AS 47.10.010, when a child who is in the custody of this 04 state under AS 47.10 or a minor who is in the custody of this state under AS 47.12 or 05 of another state under a provision similar to AS 47.10 or AS 47.12 becomes entitled to 06 receive dividends or other distributions resulting from the ownership of stock or a 07 membership in a corporation organized under this chapter and under 43 U.S.C. 1601 08 et seq. [43 U.S.C. 1601 - 1641] (Alaska Native Claims Settlement Act), the 09 corporation paying the dividends or making the other distributions shall retain the 10 dividends and other distributions in an interest bearing account for the benefit of the 11 child or minor during the state custody. 12 * Sec. 16. AS 10.20.007 is amended to read: 13 Sec. 10.20.007. Corporations organized under Alaska Native Claims 14 Settlement Act. A village corporation organized under 43 U.S.C. 1601 et seq. [43 15 U.S.C. 1601 - 1628] (Alaska Native Claims Settlement Act) may be incorporated 16 under and subject to this chapter except the name of the corporation may not contain 17 the word "village" or otherwise imply that the corporation is a municipal corporation; 18 however, the name of a village may be used in the corporate name. 19 * Sec. 17. AS 13.12.102(b) is amended to read: 20 (b) The intestate share of the surviving spouse in settlement common stock or 21 other inalienable stock in a corporation organized under the laws of the state under 43 22 U.S.C. 1601 et seq. [43 U.S.C. 1601 - 1641] (Alaska Native Claims Settlement Act) is 23 (1) all of it if there is no surviving issue; or 24 (2) one-half of it if the decedent is survived by issue. 25 * Sec. 18. AS 13.16.705(a) is amended to read: 26 (a) The settlement common stock or other inalienable stock in a corporation 27 organized under the laws of Alaska under 43 U.S.C. 1601 et seq. [43 U.S.C. 1601 - 28 1642] (Alaska Native Claims Settlement Act) is not subject to probate nor shall its 29 value be considered in determining the value of an estate or allowance under this title. 30 Upon death of the holder, if the stock does not pass by the testamentary disposition 31 clause on the stock certificate or by the form authorized under (b) of this section,

01 properly executed, it passes by will or intestate succession. In such a case, the 02 determination of the person entitled to the stock shall be made by the corporation that 03 initially issued the stock or its designated agent. The determination shall be made on 04 the basis of an affidavit, furnished to the corporation that initially issued the stock, or 05 its agent, showing the right of the person entitled to the stock to receive it. The 06 affidavit, accepted in good faith by the corporation or its agent, has the same effect as 07 an affidavit under AS 13.16.685, and the person entitled to the stock, if the affidavit is 08 not accepted, has the remedy set out in AS 13.16.685. In case of dispute as to the 09 person entitled to receive the stock, a person claiming ownership may bring an 10 independent action in the superior court. 11 * Sec. 19. AS 13.16.705(g) is amended to read: 12 (g) Where appropriate, terms used in this section have the meanings given in 13 AS 13.06.050. In this section, "stock" means the settlement common stock or other 14 inalienable stock of a corporation organized under the laws of the state under 43 15 U.S.C. 1601 et seq. [43 U.S.C. 1601 - 1642] (Alaska Native Claims Settlement Act), 16 and includes membership in a corporation organized under AS 10.20 and inchoate 17 rights to stock. 18 * Sec. 20. AS 13.26.210(g) is amended to read: 19 (g) In addition to any other requirement of this section, when appointing a 20 relative or friend of the protected person [INCAPACITATED PERSON] as the 21 conservator of the [A] protected person, the court shall require that the proposed 22 conservator complete one hour of mandatory education on the basics of 23 conservatorship before the appointment or within 30 days after the appointment. If the 24 person is appointed based on the person's agreement to complete the mandatory 25 education and the person fails to complete the mandatory education within the 30 26 days, the court shall remove the conservator and appoint a successor. 27 * Sec. 21. AS 13.26.332 is amended to read: 28 Sec. 13.26.332. Statutory form power of attorney. A person who wishes to 29 designate another as attorney-in-fact or agent by a power of attorney may execute a 30 statutory power of attorney set out in substantially the following form: 31 GENERAL POWER OF ATTORNEY

01 THE POWERS GRANTED FROM THE PRINCIPAL TO THE 02 AGENT OR AGENTS IN THE FOLLOWING DOCUMENT ARE 03 VERY BROAD. THEY MAY INCLUDE THE POWER TO 04 DISPOSE, SELL, CONVEY, AND ENCUMBER YOUR REAL AND 05 PERSONAL PROPERTY [, AND THE POWER TO MAKE YOUR 06 HEALTH CARE DECISIONS]. ACCORDINGLY, THE 07 FOLLOWING DOCUMENT SHOULD ONLY BE USED AFTER 08 CAREFUL CONSIDERATION. IF YOU HAVE ANY QUESTIONS 09 ABOUT THIS DOCUMENT, YOU SHOULD SEEK COMPETENT 10 ADVICE. 11 YOU MAY REVOKE THIS POWER OF ATTORNEY AT 12 ANY TIME. 13 Pursuant to AS 13.26.338 - 13.26.353, I, ___(Name of 14 principal)___, of ____(Address of principal)____, do hereby appoint 15 ____(Name and address of agent or agents)____, my attorney(s)-in-fact 16 to act as I have checked below in my name, place, and stead in any way 17 which I myself could do, if I were personally present, with respect to 18 the following matters, as each of them is defined in AS 13.26.344, to 19 the full extent that I am permitted by law to act through an agent: 20 THE AGENT OR AGENTS YOU HAVE APPOINTED WILL 21 HAVE ALL THE POWERS LISTED BELOW UNLESS YOU 22 DRAW A LINE THROUGH A CATEGORY; AND 23 INITIAL THE BOX OPPOSITE THAT CATEGORY 24 (A) real estate transactions ( ) 25 (B) transactions involving tangible personal 26 property, chattels, and goods ( ) 27 (C) bonds, shares, and commodities transactions ( ) 28 (D) banking transactions ( ) 29 (E) business operating transactions ( ) 30 (F) insurance transactions ( ) 31 (G) estate transactions ( )

01 (H) gift transactions ( ) 02 (I) claims and litigation ( ) 03 (J) personal relationships and affairs ( ) 04 (K) benefits from government programs and military service ( ) 05 (L) records, reports, and statements ( ) 06 (M) delegation ( ) 07 (N) all other matters, including those specified as follows: ( ) 08 _________________________________________________________ 09 _________________________________________________________ 10 _________________________________________________________ 11 IF YOU HAVE APPOINTED MORE THAN ONE AGENT, 12 CHECK ONE OF THE FOLLOWING: 13 ( ) Each agent may exercise the powers conferred separately, without 14 the consent of any other agent. 15 ( ) All agents shall exercise the powers conferred jointly, with the 16 consent of all other agents. 17 TO INDICATE WHEN THIS DOCUMENT SHALL 18 BECOME EFFECTIVE, CHECK ONE OF THE FOLLOWING: 19 ( ) This document shall become effective upon the date of my 20 signature. 21 ( ) This document shall become effective upon the date of my 22 disability and shall not otherwise be affected by my disability. 23 IF YOU HAVE INDICATED THAT THIS DOCUMENT 24 SHALL BECOME EFFECTIVE ON THE DATE OF YOUR 25 SIGNATURE, CHECK ONE OF THE FOLLOWING: 26 ( ) This document shall not be affected by my subsequent disability. 27 ( ) This document shall be revoked by my subsequent disability. 28 IF YOU HAVE INDICATED THAT THIS DOCUMENT 29 SHALL BECOME EFFECTIVE UPON THE DATE OF YOUR 30 SIGNATURE AND WANT TO LIMIT THE TERM OF THIS 31 DOCUMENT, COMPLETE THE FOLLOWING:

01 This document shall only continue in effect for ________ ( ) 02 years from the date of my signature. 03 NOTICE OF REVOCATION OF THE POWERS 04 GRANTED IN THIS DOCUMENT 05 You may revoke one or more of the powers granted in this 06 document. Unless otherwise provided in this document, you may 07 revoke a specific power granted in this power of attorney by 08 completing a special power of attorney that includes the specific power 09 in this document that you want to revoke. Unless otherwise provided in 10 this document, you may revoke all the powers granted in this power of 11 attorney by completing a subsequent power of attorney. 12 NOTICE TO THIRD PARTIES 13 A third party who relies on the reasonable representations of an 14 attorney-in-fact as to a matter relating to a power granted by a properly 15 executed statutory power of attorney does not incur any liability to the 16 principal or to the principal's heirs, assigns, or estate as a result of 17 permitting the attorney-in-fact to exercise the authority granted by the 18 power of attorney. A third party who fails to honor a properly executed 19 statutory form power of attorney may be liable to the principal, the 20 attorney-in-fact, the principal's heirs, assigns, or estate for a civil 21 penalty, plus damages, costs, and fees associated with the failure to 22 comply with the statutory form power of attorney. If the power of 23 attorney is one which becomes effective upon the disability of the 24 principal, the disability of the principal is established by an affidavit, as 25 required by law. 26 IN WITNESS WHEREOF, I have hereunto signed my name 27 this ____ day of __________, ____. 28 _________________________________ 29 Signature of Principal 30 Acknowledged before me at ____________________________ 31 ________________________ on ______________________________.

01 Signature of Officer or Notary 02 * Sec. 22. AS 13.26.344(c) is amended to read: 03 (c) In a statutory form power of attorney, the language conferring general 04 authority with respect to bonds, shares, and commodities transactions shall be 05 construed to mean that, with respect to a bond, share, or commodity of the principal, 06 whether in the state or elsewhere, the principal authorizes the agent to 07 (1) accept as a gift, or as a security for a loan, reject, demand, buy, 08 receive, or otherwise acquire either ownership or possession of, a bond, share, or 09 instrument of similar character including, by way of illustration, but not of restriction, 10 stock in a corporation organized under 43 U.S.C. 1601 et seq. [43 U.S.C. 1601 - 1628] 11 (Alaska Native Claims Settlement Act), commodity interest, or an instrument with 12 respect to a bond, share, or instruments of similar character, together with the interest, 13 dividends, proceeds, or other distributions connected with a bond, share, or instrument 14 of a similar character; 15 (2) sell, exchange, transfer, release, surrender, hypothecate, pledge, 16 revoke, create, or modify a trust, grant options concerning, loan, trade in, or otherwise 17 dispose of a bond, share, instrument of similar character, commodity interest, or a 18 related instrument; 19 (3) release, assign the whole or part of, satisfy in whole or in part, and 20 enforce a pledge, encumbrance, lien, or other claim as to a bond, share, instrument of 21 similar character, commodity interest, or a related interest, when the pledge, 22 encumbrance, lien, or other claim is owned, or claimed to be owned, by the principal; 23 (4) do any act of management or of conservation with respect to a 24 bond, share, instrument of similar character, commodity interest, or a related 25 instrument, owned or claimed to be owned by the principal or in which the principal 26 has or claims to have an interest, including by way of illustration, but not of 27 restriction, power to insure against a casualty, liability, or loss, obtain or regain 28 possession or protect the principal's interest, pay, compromise, or contest taxes or 29 assessments, apply for a refund in connection with a payment, compromise, or tax, 30 consent to and participate in a reorganization, recapitalization, liquidation, merger, 31 consolidation, sale or lease or other change in or revival of a corporation or other

01 association, or in the financial structure of a corporation or other association, or in the 02 priorities, voting rights, or other special rights with respect to a corporation or 03 association, become a depositor with a protective, reorganization or similar committee 04 of the bond, share, other instrument of similar character, commodity interest or a 05 related instrument, belonging to the principal, make a payment reasonably incident to 06 them, and exercise or sell an option, conversion, or similar right, or vote in person or 07 by the granting of a proxy for the accomplishment of the purposes enumerated in this 08 subsection; 09 (5) carry in the name of a nominee selected by the agent evidence of 10 the ownership of a bond, share, other instrument of similar character, commodity 11 interest, or related instrument belonging to the principal; 12 (6) employ, in any way believed to be desirable by the agent, a bond, 13 share, other instrument of similar character, commodity interest, or a related 14 instrument, in which the principal has or claims to have an interest, for the protection 15 or continued operation of a speculative or margin transaction personally begun or 16 personally guaranteed, in whole or in part, by the principal; 17 (7) demand, receive, or obtain money or any other thing of value to 18 which the principal is, or may claim to be, entitled as the proceeds of an interest in a 19 bond, share, other instrument of similar character, commodity interest or a related 20 instrument, or of one or more of the transactions enumerated in this subsection, 21 conserve, invest, disburse, or use anything so received for purposes enumerated in this 22 subsection; and reimburse the agent for an expenditure properly made in the execution 23 of the powers conferred by the statutory form power of attorney; 24 (8) agree and contract, in any manner, and with a broker or other 25 person, and on terms that the agent may select, for the accomplishment of the purposes 26 enumerated in this subsection, and perform, rescind, reform, release, or modify the 27 agreement or contract or other similar agreement made by or on behalf of the 28 principal; 29 (9) execute, acknowledge, seal, and deliver a consent, agreement, 30 authorization, assignment, revocation, declaration or modification of trust, notice, 31 waiver of notice, check, or other instrument that the agent considers useful for the

01 accomplishment of the purposes enumerated in this subsection; 02 (10) execute, acknowledge and file a report or certificate required by 03 law or regulation; 04 (11) prosecute, defend, submit to arbitration, settle, and propose or 05 accept a compromise with respect to, a claim existing in favor of, or against, the 06 principal based on or involving a bond, share, or commodity transactions, or intervene 07 in a related action or proceeding; 08 (12) hire, discharge, and compensate an attorney, accountant, expert 09 witness, or assistant when the agent considers that action to be desirable for the proper 10 execution of the powers described in this subsection, and for the keeping of records 11 about that action; and 12 (13) do any other act or acts that the principal can do through an agent, 13 with respect to an interest in a bond, share, or other instrument of similar character, 14 commodity, or instrument with respect to a commodity. 15 * Sec. 23. AS 13.46.085(a) is amended to read: 16 (a) The stock or membership in a corporation organized under the law of this 17 state under 43 U.S.C. 1601 et seq. ( [THE] Alaska Native Claims Settlement Act) [(43 18 U.S.C. 1601 - 1642)] that a minor is entitled to receive under that Act shall be held by 19 a custodian. 20 * Sec. 24. AS 13.46.085(f) is amended to read: 21 (f) In this section, 22 (1) "Act" means 43 U.S.C. 1601 et seq. ( [THE] Alaska Native Claims 23 Settlement Act) [(43 U.S.C. 1601 - 1642)]; 24 (2) "minor" means an individual who is less than 18 years of age; 25 (3) "stock" means the stock or membership in a corporation that is 26 organized under the law of this state under the Act and that a minor is entitled to 27 receive under the Act, whether by gift, devise, or other method; "stock" includes 28 inchoate rights to stock. 29 * Sec. 25. AS 14.07.030 is amended to read: 30 Sec. 14.07.030. Powers of the department. The department may 31 (1) establish, maintain, govern, operate, discontinue, and combine area,

01 regional, and special schools; 02 (2) enter into contractual agreements with [THE BUREAU OF 03 INDIAN AFFAIRS OR WITH] a school district to share boarding costs of secondary 04 school students; 05 (3) provide for citizenship night schools when and where expedient; 06 (4) provide for the sale or other disposition of abandoned or obsolete 07 buildings and other state-owned school property; 08 (5) prescribe a classification for items of expense of school districts; 09 (6) acquire and transfer personal property, acquire real property, and 10 transfer real property to federal agencies, state agencies, or to political subdivisions; 11 (7) enter into contractual agreements with school districts to provide 12 more efficient or economical education services; reasonable fees may be charged by 13 the department to cover the costs of providing services under an agreement, including 14 costs for professional services, reproduction or printing, and mailing and distribution 15 of educational materials; 16 (8) provide for the issuance of elementary and secondary diplomas to 17 persons not in school who have completed the equivalent of an 8th or 12th grade 18 education, respectively, in accordance with standards established by the department; 19 (9) apply for, accept, and spend endowments, grants, and other private 20 money available to the state for educational purposes in accordance with AS 37.07 21 (Executive Budget Act); 22 (10) set student tuition and fees for educational and extracurricular 23 programs and services provided and schools operated by the department under the 24 provisions of (1) of this section and AS 14.07.020(a)(9), (11), and (12); 25 (11) charge fees to cover the costs of care and handling with respect to 26 the acquisition, warehousing, distribution, or transfer of donated foods; 27 (12) establish and collect fees for the rental of school facilities and for 28 other programs and services provided by the schools; 29 (13) develop a model curriculum and provide technical assistance for 30 early childhood education programs. 31 * Sec. 26. AS 14.08.101 is amended to read:

01 Sec. 14.08.101. Powers. A regional school board may 02 (1) sue and be sued; 03 (2) contract with the department [, THE BUREAU OF INDIAN 04 AFFAIRS,] or any other school district, agency, or regional board for the provision of 05 services, facilities, supplies, or utilities; 06 (3) determine its own fiscal procedures, including but not limited to 07 policies and procedures for the purchase of supplies and equipment; the regional 08 school boards are exempt from AS 37.05 (Fiscal Procedures Act) and AS 36.30 (State 09 Procurement Code); 10 (4) appoint, compensate, and otherwise control all school employees in 11 accordance with this title; these employees are not subject to AS 39.25 (State 12 Personnel Act); 13 (5) adopt regulations governing organization, policies, and procedures 14 for the operation of the schools; 15 (6) establish, maintain, operate, discontinue, and combine schools 16 subject to the approval of the commissioner; 17 (7) recommend to the department projects for construction, 18 rehabilitation, and improvement of schools and education-related facilities as specified 19 in AS 14.11.011(b), and plan, design, and construct the project when the responsibility 20 for it is assumed under AS 14.11.020; 21 (8) by resolution adopted by a majority of all the members of the board 22 and provided to the commissioner of the department, assume ownership of all land and 23 buildings used in relation to the schools in the regional educational attendance area; 24 (9) provide housing for rental to teachers, by leasing existing housing 25 from a local agency or individual, by entering into contractual arrangements with a 26 local agency or individual to lease housing that will be constructed by the local agency 27 or individual for that purpose, or, without using for the purpose that portion of public 28 school funding that consists of state aid provided under AS 14.17, by constructing or 29 otherwise acquiring housing that is owned and managed by the regional educational 30 attendance area for rental to teachers; 31 (10) exercise those other functions that may be necessary for the

01 proper performance of its responsibilities; 02 (11) employ a chief school administrator. 03 * Sec. 27. AS 14.57.210(a) is amended to read: 04 (a) A museum may acquire title to undocumented property held by a museum 05 for seven years or longer if 06 (1) the seven-year holding period is verified by the written records of 07 the museum; 08 (2) when this paragraph is applicable, the museum has notified by mail 09 all corporations, except nonprofit corporations, created under 43 U.S.C. 1601 et seq. 10 [43 U.S.C. 1601 - 1629e] (Alaska Native Claims Settlement Act) that the 11 undocumented property appears to be a Native artifact, that the corporations are 12 requested to view, identify, and catalog the property within one year after the 13 notification, and that the museum may take steps to acquire title to the property after 14 the one-year notification period and the seven-year holding period have expired 15 without a person filing a claim with the museum that the person is the owner of the 16 property; in this paragraph, the periods may run concurrently; and 17 (3) during the seven-year holding period, or the longer period if 18 expanded by the application of (2) of this subsection, a person has not filed a claim 19 with the museum that the person is the owner of the property. 20 * Sec. 28. AS 14.60.010(6) is amended to read: 21 (6) "public schools" include elementary schools, high schools, 22 citizenship night schools for adults, and other public educational institutions that 23 [WHICH] may be established [; HOWEVER, NOTHING IN THIS TITLE 24 INCLUDES SCHOOLS FOR ALASKA NATIVES UNDER THE CONTROL OF 25 THE FEDERAL GOVERNMENT AND ADMINISTERED AND SUPERVISED 26 THROUGH THE BUREAU OF INDIAN AFFAIRS]; 27 * Sec. 29. AS 16.05.835(b) is amended to read: 28 (b) A vessel engaged in the Bering Sea [KOREAN] hair crab fishery within 29 five miles of the shore may not be longer than 58 feet overall length. 30 * Sec. 30. AS 16.10.520(e) is amended to read: 31 (e) The total amount of loans made or purchased in any fiscal year may not

01 exceed the amount specifically authorized by statute. [THE AMOUNT TO BE 02 PURCHASED MAY NOT EXCEED $3,000,000 FOR FISCAL YEAR 1977 AND 03 $10,000,000 FOR FISCAL YEAR 1978.] 04 * Sec. 31. AS 16.20.032(b) is amended to read: 05 (b) Selections under 43 U.S.C. 1601 et seq. ( [43 U.S.C. 1601 - 1628 (P.L. 06 92-203,] Alaska Native Claims Settlement Act) are recognized as valid prior claims to 07 the land within the area described in (a) of this section. Land specified in (a) of this 08 section may not include land patented to a Native corporation under that Act. 09 * Sec. 32. AS 16.20.310(c) is amended to read: 10 (c) The commissioner shall develop and amend the game management plan to 11 coordinate, as closely as possible, the game management plan with the activities of the 12 [AGRICULTURAL DEVELOPMENT AUTHORITY,] Department of Natural 13 Resources [,] relating to the Big Delta agricultural development project. 14 * Sec. 33. AS 16.43.450(a) is amended to read: 15 (a) The commission may establish a vessel permit system under AS 16.43.450 16 - 16.43.520 for the Bering Sea [KOREAN] hair crab fishery or a weathervane scallop 17 fishery if the commission determines that 18 (1) the regulation of entry into the fishery is necessary to achieve the 19 purposes of this chapter; 20 (2) a vessel permit system would achieve the purposes of this chapter; 21 and 22 (3) either 23 (A) limiting the number of participants in the fishery under 24 AS 16.43.140 - 16.43.330 would not achieve the purposes of this chapter; or 25 (B) regulating the number of vessels in the fishery would 26 enable the state to gain or retain management of the fishery. 27 * Sec. 34. AS 16.43.450(b) is amended to read: 28 (b) If the federal government has delegated management authority in the 29 United States exclusive economic zone to the state for the Bering Sea [KOREAN] hair 30 crab fishery or a weathervane scallop fishery, the commission may, to the extent 31 consistent with this chapter, adopt regulations to ensure that the vessel permit system

01 is consistent with applicable federal laws. 02 * Sec. 35. AS 16.43.460(b) is amended to read: 03 (b) If the commission establishes a vessel permit system under AS 16.43.450 04 for a fishery that is, or recently was, subject to a moratorium on entry of new vessels 05 under former AS 16.43.901 or former 16.43.906, the commission shall incorporate 06 some or all of the vessel eligibility criteria established for the moratorium into the 07 eligibility criteria for vessel permits issued under the vessel permit system. 08 * Sec. 36. AS 17.20.330 is amended to read: 09 Sec. 17.20.330. Liability for dissemination of false advertising. The 10 publisher, radio-broadcast licensee, or agency or medium for the dissemination of an 11 advertisement, except the manufacturer, packer, distributor, or seller of the article to 12 which a false advertisement relates, is not liable under AS 17.20.305, 17.20.315, or 13 AS 45.50.471 - 45.50.561 for the dissemination of the false advertisement, unless the 14 publisher, licensee, agency, or medium has refused the request of the commissioner of 15 health and social services or the commissioner of commerce, community, and 16 economic development to furnish the name and post office address of the 17 manufacturer, packer, distributor, seller, or advertising agency [,] residing in the state 18 who caused dissemination of the advertisement. 19 * Sec. 37. AS 18.56.097 is amended to read: 20 Sec. 18.56.097. Collateral for loans. Under procedures established by 21 regulations of the corporation adopted in accordance with AS 18.56.088 a person may 22 pledge as security for the repayment of a loan made, purchased, or insured by the 23 corporation under this chapter a preference right the person holds to receive title to 24 land the person occupies as a primary place of residence, primary place of business, 25 subsistence campsite, or as headquarters for reindeer husbandry. The preference right 26 must be conveyed to the person by the Native corporation to which the land was 27 granted under 43 U.S.C. 1613 [SECTION 14 OF THE ALASKA NATIVE CLAIMS 28 SETTLEMENT ACT (85 STAT. 688, 43 U.S.C. SEC. 1601 - 1626, AS AMENDED 29 BY P.L. 94-204)] before it may be pledged as security under this section. The 30 Department of Commerce, Community, and Economic Development shall prescribe 31 procedures and standard forms for establishing and appraising the value of a

01 preference right held by a person to secure the repayment of a loan made, purchased, 02 or insured by the corporation under this chapter. 03 * Sec. 38. AS 21.34.170(a) is amended to read: 04 (a) A surplus lines broker shall file with the director on or before the end of 05 each month, on forms prescribed by the director, a verified report of all surplus lines 06 insurance, by type of insurance as required to be reported in the annual statement that 07 must be filed with the director by admitted insurers. The report must include all 08 surplus lines insurance transactions during the preceding calendar month showing the 09 aggregate gross premiums written, the aggregate return premiums, the amount of 10 aggregate tax remitted to this state, and the amount of aggregate tax remitted to each 11 other state for which an allocation is made under AS 21.34.180 [AS 21.34.150]. 12 * Sec. 39. AS 21.34.180(a) is amended to read: 13 (a) Gross premiums written, less any return premium, for surplus lines 14 insurance are subject to a premium [RECEIPTS] tax as outlined in AS 21.09.210, 15 which shall be collected by the surplus lines broker as specified by the director, in 16 addition to the full amount of the gross premium written by the insurer for the 17 insurance. The tax on any portion of the premium unearned at termination of insurance 18 having been credited by the state to the surplus lines broker shall be returned to the 19 policy holder directly by the surplus lines broker or through the producing broker, if 20 any. The surplus lines broker may not absorb the tax or any part of it, and may not 21 rebate for any reason the tax or any part of it. However, if, under AS 21.09.210, an 22 admitted insurer is required to collect and pay premium tax on a portion of a 23 subscription policy, the surplus lines broker is not required to collect any amount that 24 would constitute double taxation of that portion of the insurance. 25 * Sec. 40. AS 22.10.025(a) is amended to read: 26 (a) The superior court, in an action for divorce, separation, or child support, 27 affecting inalienable stock in a corporation organized under 43 U.S.C. 1601 et seq. 28 [43 U.S.C. 1601 - 1628] (Alaska Native Claims Settlement Act), may order the stock 29 transferred to the spouse, a child, or a guardian or custodian for a child, but may not 30 order it sold on the open market or transferred to other persons. 31 * Sec. 41. AS 24.20.271 is amended to read:

01 Sec. 24.20.271. Powers and duties. The legislative audit division shall 02 (1) conduct a performance post-audit of boards and commissions 03 designated in AS 44.66.010 [AND OF THOSE PROGRAMS AND ACTIVITIES OF 04 AGENCIES SUBJECT TO TERMINATION AS DETERMINED IN THE MANNER 05 SET OUT IN AS 44.66.020 AND 44.66.030,] and make the audit, together with a 06 written report, available to the legislature not later than the first day of the regular 07 session of the legislature convening in each year set out with reference to boards or [,] 08 commissions [, OR AGENCY PROGRAMS] whose activities are subject to 09 termination as prescribed in AS 44.66; the division shall notify the legislature that the 10 audit and report are available; 11 (2) audit at least once every three years the books and accounts of all 12 custodians of public funds and all disbursing officers of the state; 13 (3) at the direction of the Legislative Budget and Audit Committee, 14 conduct performance post-audits on any agency of state government; 15 (4) cooperate with state agencies by offering advice and assistance as 16 requested in establishing or improving the accounting systems used by state agencies; 17 (5) require the assistance and cooperation of all state officials and 18 other state employees in the inspection, examination, and audit of state agency books 19 and accounts; 20 (6) have access at all times to the books, accounts, reports, or other 21 records, whether confidential or not, of every state agency; 22 (7) ascertain, as necessary for audit verification, the amount of agency 23 funds on deposit in any bank as shown on the books of the bank; no bank may be held 24 liable for making information required under this paragraph available to the legislative 25 audit division; 26 (8) complete studies and prepare reports, memoranda, or other 27 materials as directed by the Legislative Budget and Audit Committee; 28 (9) have direct access to any information related to the management of 29 the University of Alaska and have the same right of access as exists with respect to 30 every other state agency. 31 * Sec. 42. AS 26.05.330(e) is amended to read:

01 (e) For each day of duty as a member of a general court-martial, or as a 02 witness under summons from the president or judge advocate of the court, officers and 03 enlisted persons shall be paid as provided in AS 26.05.260(b) [AND (c)]. 04 * Sec. 43. AS 26.10.060(a) is amended to read: 05 (a) The provisions of 50 U.S.C. App. 459 (sec. 9, Universal Military Training 06 and Service Act), as amended, are extended to this state and its political subdivisions. 07 [IT IS THE INTENT OF THIS SECTION THAT ALL RE-EMPLOYMENT 08 BENEFITS GRANTED BY 50 U.S.C. APP. 459 TO A VETERAN WHO WAS IN 09 THE EMPLOY OF A PRIVATE EMPLOYER AT THE TIME OF THE VETERAN'S 10 INDUCTION INTO THE ARMED FORCES OF THE UNITED STATES SHALL, 11 IN THE SAME MANNER AND TO THE SAME EXTENT, BE GRANTED TO A 12 VETERAN WHO WAS IN THE EMPLOY OF THE STATE OF ALASKA OR A 13 POLITICAL SUBDIVISION OF THE STATE AT THE TIME OF INDUCTION 14 INTO THE ARMED FORCES OF THE UNITED STATES.] 15 * Sec. 44. AS 29.45.050(m) is amended to read: 16 (m) A municipality may by ordinance partially or totally exempt all or some 17 types of economic development property from taxation for up to five years. The 18 municipality may provide for renewal of the exemption under conditions established 19 in the ordinance. However, under a renewal, a municipality that is a school district 20 may only exempt all or a portion of the amount of taxes that exceeds the amount 21 levied on other property for the school district. A municipality may by ordinance 22 permit deferral of payment of taxes on all or some types of economic development 23 property for up to five years. The municipality may provide for renewal of the deferral 24 under conditions established in the ordinance. A municipality may adopt an ordinance 25 under this subsection only if, before it is adopted, copies of the proposed ordinance 26 made available at a public hearing on it contain written notice that the ordinance, if 27 adopted, may be repealed by the voters through referendum. An ordinance adopted 28 under this subsection must include specific eligibility requirements and require a 29 written application for each exemption or deferral. In this subsection "economic 30 development property" means real or personal property, including developed property 31 conveyed under 43 U.S.C. 1601 et seq. [43 U.S.C. 1601 - 1629e] (Alaska Native

01 Claims Settlement Act), that 02 (1) has not previously been taxed as real or personal property by the 03 municipality; 04 (2) is used in a trade or business in a way that 05 (A) creates employment in the municipality; 06 (B) generates sales outside of the municipality of goods or 07 services produced in the municipality; or 08 (C) materially reduces the importation of goods or services 09 from outside the municipality; and 10 (3) has not been used in the same trade or business in another 11 municipality for at least six months before the application for deferral or exemption is 12 filed; this paragraph does not apply if the property was used in the same trade or 13 business in an area that has been annexed to the municipality within six months before 14 the application for deferral or exemption is filed; this paragraph does not apply to 15 inventories. 16 * Sec. 45. AS 34.15.075(b) is amended to read: 17 (b) In this section, "Alaska Native Claims Settlement Act real property" means 18 real property that, at some point in that real property's chain of title, was conveyed by 19 the federal government under 43 U.S.C. 1601 et seq. [43 U.S.C. 1601 - 1629h] 20 (Alaska Native Claims Settlement Act) to a corporation established under 43 U.S.C. 21 1601 et seq. [43 U.S.C. 1601 - 1629h.] 22 * Sec. 46. AS 34.45.760(10) is amended to read: 23 (10) "intangible property" 24 (A) includes 25 (i) money, checks, drafts, warrants, deposits, interest, 26 dividends, and income; 27 (ii) credit balances, customer overpayments, gift 28 certificates, security deposits, refunds, credit memos, unpaid wages, 29 and unidentified remittances; 30 (iii) stocks and other intangible equity interests in 31 business associations;

01 (iv) money deposited to redeem stocks, bonds, coupons, 02 and other securities, or to make distributions; 03 (v) amounts due and payable under the terms of 04 insurance policies; 05 (vi) amounts distributable from a trust or custodial fund 06 established under a plan to provide health, welfare, pension, vacation, 07 severance, retirement, death, stock purchase, profit-sharing, employee 08 savings, supplemental unemployment insurance, or similar benefits; 09 and 10 (vii) amounts due and payable as mineral proceeds; 11 (B) does not include 12 (i) unused airline tickets; 13 (ii) shares of stock issued by a corporation organized 14 under 43 U.S.C. 1601 et seq. [43 U.S.C. 1601 - 1629a] (Alaska Native 15 Claims Settlement Act) or unclaimed dividends payable on the shares 16 of stock; or 17 (iii) overpaid contributions by employers to the 18 unemployment compensation fund under AS 23.20.130; 19 * Sec. 47. AS 36.30.170(b) is amended to read: 20 (b) The procurement officer shall award a contract based on solicited bids to 21 the lowest responsive and responsible bidder after an Alaska bidder preference of five 22 percent, an Alaska products preference as described in AS 36.30.322 - 36.30.338, and 23 a recycled products preference under AS 36.30.337 have been applied. In this 24 subsection, "Alaska bidder" means a person who 25 (1) holds a current Alaska business license; 26 (2) submits a bid for goods, services, or construction under the name as 27 appearing on the person's current Alaska business license; 28 (3) has maintained a place of business within the state staffed by the 29 bidder or an employee of the bidder for a period of six months immediately preceding 30 the date of the bid; 31 (4) is incorporated or qualified to do business under the laws of the

01 state, is a sole proprietorship and the proprietor is a resident of the state, is a limited 02 liability company organized under AS 10.50 and all members are residents of the state, 03 or is a partnership under former AS 32.05, AS 32.06, or AS 32.11 and all partners are 04 residents of the state; and 05 (5) if a joint venture, is composed entirely of ventures that qualify 06 under (1) - (4) of this subsection. 07 * Sec. 48. AS 37.14.410(a) is amended to read: 08 (a) Amounts received by the state as reimbursement for expenses related to the 09 Exxon Valdez oil spill incurred by the state on or before December 31, 1992, shall be 10 deposited in the general fund and, except as required under (b) of this section may not 11 be credited to an [THE] oil and hazardous substance release mitigation account under 12 AS 46.04.010 or to an account established in AS 46.08.020 or 46.08.025. 13 * Sec. 49. AS 38.05.073(c) is amended to read: 14 (c) If the commissioner identifies land for recreational facilities development 15 leasing under (a) of this section, at least 30 days before the commissioner decides to 16 solicit proposals from potential lessees, the commissioner shall provide public notice 17 of the location and the specific type of recreational facilities development being 18 considered and request comments. The notice shall be provided to (1) a municipality if 19 the land is entirely or partially within the boundaries of the municipality; (2) a regional 20 corporation organized under 43 U.S.C. 1601 et seq. [43 U.S.C. 1601 - 1629e] (Alaska 21 Native Claims Settlement Act) if the boundaries of the corporation established by 43 22 U.S.C. 1606(a) encompass part or all of the land and the land encompassed by the 23 corporation's boundaries is entirely or partially outside the municipality; (3) a village 24 corporation organized under 43 U.S.C. 1601 if all or part of the land is within 40 miles 25 of the village for which the corporation was established and the land is located entirely 26 or partially outside a municipality; (4) other persons affected by the specific 27 recreational facility development; and (5) persons who have specifically requested to 28 be notified. Public notice identifying the location and the specific type of recreational 29 facilities development under consideration must also be published at least twice in a 30 newspaper of general circulation in the state and in a local newspaper in general 31 circulation in the region where the land is located. The comments received under this

01 subsection become part of the public record for the consideration of the commissioner. 02 * Sec. 50. AS 38.95.050 is amended to read: 03 Sec. 38.95.050. Land management contracts with Native corporations. A 04 corporation organized under state law pursuant to 43 U.S.C. 1601 et seq. [43 U.S.C. 05 1601 - 1628] (Alaska Native Claims Settlement Act) may contract with the 06 Department of Natural Resources for the management of land; however, a sale, lease, 07 exchange or other disposal of this land may not be made without the approval of the 08 corporation owning it. The contract is terminable upon reasonable notice by either 09 party to it; it may cover all or a portion of the land of the corporation, and shall 10 provide for the terms of management by reference to law or regulation or otherwise. 11 The Department of Natural Resources is authorized to receive and expend, subject to 12 appropriation, funds necessary to carry out its functions under this section. 13 * Sec. 51. AS 41.17.041(b) is amended to read: 14 (b) The board is composed of nine members appointed by the governor: 15 (1) a representative of a commercial fishermen's organization; 16 (2) a representative of a Native corporation established under 43 17 U.S.C. 1601 et seq. [43 U.S.C. 1601-1628] (Alaska Native Claims Settlement Act); 18 (3) a representative of an environmental organization; 19 (4) a representative of a forest industry trade association; 20 (5) a professional fish or wildlife biologist who is not employed in that 21 capacity by a state, municipal, or federal government agency, except for university 22 employment; 23 (6) a professional forester who is not employed in that capacity by a 24 state, municipal, or federal government agency, except for university employment; 25 (7) a representative of a mining organization; 26 (8) a representative of a recreational organization; and 27 (9) the state forester, who serves ex officio and without a vote. 28 * Sec. 52. AS 41.17.900(f) is amended to read: 29 (f) This chapter does not diminish the rights, privileges, or immunities of 30 Alaska Natives or Alaska Native corporations with respect to land conveyed under 43 31 U.S.C. 1601 et seq. [43 U.S.C. 1601 - 1628] (Alaska Native Claims Settlement Act),

01 and does not alter or diminish the authority of the Department of Fish and Game under 02 AS 16, of the Department of Environmental Conservation under AS 46, or of a state 03 agency under other law. 04 * Sec. 53. AS 41.21.025(b) is amended to read: 05 (b) Land patented to or under interim conveyance to a regional or village 06 Native [NATIVE] corporation under 43 U.S.C. et seq. [43 U.S.C. 1601-1628] ([P.L. 07 92-203,] Alaska Native Claims Settlement Act) that falls within a state park boundary 08 is subject to the zoning regulations provided for under (a) of this section only if the 09 affected regional or village Native [NATIVE] corporation consents to or fails to reject 10 the zoning regulations within 60 days from the date they are submitted to the affected 11 corporation. 12 * Sec. 54. AS 43.50.460(d) is amended to read: 13 (d) For a nonparticipating manufacturer, the certification required by (a) of 14 this section must additionally certify that the nonparticipating manufacturer 15 (1) is registered to do business in the state or has appointed a resident 16 agent for service of process and provided notice of the appointment as required by 17 AS 43.50.475 [AS 43.50.530]; 18 (2) has 19 (A) established and continues to maintain a qualified escrow 20 fund; and 21 (B) executed a qualified escrow agreement that has been 22 reviewed and approved by the Department of Law and that governs the 23 qualified escrow fund; and 24 (3) is in full compliance with AS 45.53 and this section, and any 25 regulations adopted under those statutes. 26 * Sec. 55. AS 43.98.015(a) is amended to read: 27 (a) The receipt of the original issue of shares of stock in a corporation 28 organized under Alaska law pursuant to 43 U.S.C. 1601 et seq. ([THE FEDERAL] 29 Alaska Native Claims Settlement Act) [(P.L. 92-203; 85 STAT. 688; 43 U.S.C. 1601 30 ET SEQ.)] by or on behalf of a Native [NATIVE] (as defined in the federal Act) is not 31 subject to any form of state or local taxation.

01 * Sec. 56. AS 43.98.015(b) is amended to read: 02 (b) The receipt of land or an interest in it under the federal Act or of cash in 03 order to equalize the values of property exchanged under 43 U.S.C. 1621(f) [SEC. 04 22(f) OF THAT ACT] or AS 38.50 is not subject to any form of state or local taxation. 05 The basis for computing gain or loss on subsequent sale or other disposition of this 06 land or interest in land for purposes of a state or local tax imposed on or measured by 07 income is the fair value of the land or interest in land at the time of receipt. 08 * Sec. 57. AS 44.27.056 is amended to read: 09 Sec. 44.27.056. Reports. The council shall report to the governor [NOT 10 LATER THAN NOVEMBER 1, 1966, AND] from time to time [THEREAFTER]. 11 The council shall notify the legislature when its reports are available. 12 * Sec. 58. AS 44.29.210(a) is amended to read: 13 (a) There is created in the department an alcoholism and drug abuse revolving 14 loan fund as required under 42 U.S.C. 300x-25 [42 U.S.C. 300x - 4a] to qualify the 15 state to receive block grant money from the United States Department of Health and 16 Human Services under 42 U.S.C. 300x-21 [42 U.S.C. 300x - 2]. 17 * Sec. 59. AS 44.29.210(c) is amended to read: 18 (c) Money in the fund may be used as required under 42 U.S.C. 300x-25 [42 19 U.S.C. 300x - 4a] to make loans to private nonprofit organizations for the cost of 20 establishing programs to help pay the living expenses of individuals recovering from 21 alcohol or drug abuse who may reside in groups. 22 * Sec. 60. AS 44.42.065(a) is amended to read: 23 (a) The department shall, [AS SOON AS PRACTICABLE AFTER JULY 1, 24 1980, AND] at least once every seven years [THEREAFTER], perform an energy 25 audit of each public building. 26 * Sec. 61. AS 44.62.350(c) is amended to read: 27 (c) Except for a [A] hearing officer hired [AFTER APRIL 29, 1959, 28 EXCEPT] to conduct hearings under AS 23.20 (Alaska Employment Security Act), a 29 hearing officer shall have been admitted to practice law for at least two years 30 immediately before the appointment. 31 * Sec. 62. AS 44.66.050 is amended to read:

01 Sec. 44.66.050. Legislative oversight. (a) Before the termination, dissolution, 02 continuation, or reestablishment of a board or commission under AS 08.03.010 or 03 AS 44.66.010 [, OR OF AN AGENCY PROGRAM UNDER AS 44.66.020 AND 04 44.66.030], a committee of reference of each house, which shall be the standing 05 committee of legislative jurisdiction as provided in the Uniform Rules of the 06 Legislature, shall hold one or more hearings to receive testimony from the public, the 07 commissioner of the department having administrative responsibility for each named 08 board or [,] commission [, OR AGENCY PROGRAM], and the members of the 09 board or commission involved. The hearings may be joint hearings. The committee 10 shall also consider the proposed budget of the board or [,] commission [, OR 11 AGENCY PROGRAM], prepared in accordance with AS 37.07.050(f), and the 12 performance audit of the activities of the board or [,] commission [, OR AGENCY 13 PROGRAM], prepared by the legislative audit division as prescribed in 14 AS 24.20.271(1). The committee may consider any other report of the activities of the 15 board or [,] commission [OR PROGRAM], including but not limited to annual 16 reports, summaries prepared by the Legislative Affairs Agency, and any evaluation or 17 general report of the manner of conduct of activities of the board or [,] commission [, 18 OR AGENCY PROGRAM] prepared by the office of the ombudsman. 19 (b) During a public hearing, the board, commission, or agency shall have the 20 burden of demonstrating a public need for its continued existence [OR THE 21 CONTINUATION OF THE PROGRAM,] and the extent to which any change in the 22 manner of exercise of its functions or activities may increase efficiency of 23 administration or operation consistent with the public interest. 24 (c) A determination as to whether a board or commission [OR AGENCY 25 PROGRAM] has demonstrated a public need for its continued existence must take into 26 consideration the following factors: 27 (1) the extent to which the board or [,] commission [, OR 28 PROGRAM] has operated in the public interest; 29 (2) the extent to which the operation of the board or [,] commission [, 30 OR AGENCY PROGRAM] has been impeded or enhanced by existing statutes, 31 procedures, and practices that it has adopted, and any other matter, including

01 budgetary, resource, and personnel matters; 02 (3) the extent to which the board, commission, or agency has 03 recommended statutory changes that are generally of benefit to the public interest; 04 (4) the extent to which the board, commission, or agency has 05 encouraged interested persons to report to it concerning the effect of its regulations 06 and decisions on the effectiveness of service, economy of service, and availability of 07 service that it has provided; 08 (5) the extent to which the board, commission, or agency has 09 encouraged public participation in the making of its regulations and decisions; 10 (6) the efficiency with which public inquiries or complaints regarding 11 the activities of the board, commission, or agency filed with it, with the department to 12 which a board or commission is administratively assigned, or with the office of 13 victims' rights or the office of the ombudsman have been processed and resolved; 14 (7) the extent to which a board or commission that regulates entry into 15 an occupation or profession has presented qualified applicants to serve the public; 16 (8) the extent to which state personnel practices, including affirmative 17 action requirements, have been complied with by the board, commission, or agency to 18 its own activities and the area of activity or interest; and 19 (9) the extent to which statutory, regulatory, budgeting, or other 20 changes are necessary to enable the agency, board, or commission to better serve the 21 interests of the public and to comply with the factors enumerated in this subsection. 22 (d) As to each board or [,] commission [, OR AGENCY PROGRAM] 23 assigned to it for purposes of review, the committee of reference shall, not later than 24 the 60th day of the legislative session, submit a report to the presiding officer of the 25 house. The report must contain a summary of the findings of the committee as to the 26 compliance of the board or [,] commission [, OR PROGRAM] with the factors 27 enumerated in (c) of this section, together with a summary or recommendations of the 28 committee as to each of the following: 29 (1) an identification of the problems or the needs that the 30 [PROGRAMS AND] activities of the board, commission, or agency are intended to 31 address;

01 (2) a statement, to the extent practicable, of the objectives of the 02 program of the board or [,] commission [, OR AGENCY PROGRAM], and its 03 anticipated accomplishments; 04 (3) an identification of any other programs having similar, conflicting, 05 or duplicate objectives; 06 (4) an assessment of alternative methods of achieving the purposes of 07 the program; 08 (5) an assessment of the consequences of eliminating the board, 09 commission, or program and consolidating its activities with another program, or of 10 funding it at a lower level; 11 (6) a justification for the recommended continuation or extension of 12 the board, commission, or program, and an explanation of the manner in which it 13 avoids duplication of or conflict with other efforts; and 14 (7) any other information that, in the opinion of the committee, would 15 improve the performance of the board, commission, or agency with respect to its 16 representation of and responsiveness to the public interest. 17 (e) The committee of reference may introduce a bill providing for the 18 reorganization or continuation of the board or [,] commission. Not [, OR AGENCY 19 PROGRAM. NO] more than one board or [,] commission [, OR AGENCY 20 PROGRAM] may be continued or reestablished in any legislative bill, and the board 21 or [,] commission, [OR AGENCY PROGRAM] must be mentioned in the title of the 22 bill. 23 * Sec. 63. AS 44.66.060 is amended to read: 24 Sec. 44.66.060. Existing claims. This chapter does not cause the termination 25 or dismissal of a claim or right of a citizen against a board or [,] commission, or 26 against a program of an agency under former AS 44.66.020 or former 44.66.030, 27 terminated under this chapter that is subject to litigation. Claims and rights shall be 28 assumed by the department to which the board or commission terminated under this 29 chapter was attached for administrative purposes. 30 * Sec. 64. AS 44.83.425 is amended to read: 31 Sec. 44.83.425. Definitions. In AS 44.83.382 - 44.83.425 [AS 44.83.380 -

01 44.83.425], 02 (1) "debt service" means the amounts covenanted with respect to, or 03 pledged to pay, bonds under a trust agreement securing bonds; 04 (2) "fund" means the power development fund established by 05 AS 44.83.382; 06 (3) "qualified utility" means an electric utility or an electric operating 07 entity established as an instrumentality of two or more electric utilities certified under 08 AS 42.05 to serve all or part of a market area that is served or will be served by the 09 power project, that the authority determines is capable of operating and maintaining 10 the power project. 11 * Sec. 65. AS 44.88.085(c) is amended to read: 12 (c) The authority may adopt regulations to carry out the purposes of this 13 chapter and shall adopt regulations as provided in (g) [AND (h)] of this section. 14 * Sec. 66. AS 45.55.138 is amended to read: 15 Sec. 45.55.138. Application to Alaska Native Claims Settlement Act 16 corporations. The initial issue of stock of a corporation organized under Alaska law 17 pursuant to 43 U.S.C. 1601 et seq. [43 U.S.C. 1601 - 1628] (Alaska Native Claims 18 Settlement Act) is not a sale of a security under AS 45.55.070 and 45.55.130(10). 19 * Sec. 67. AS 45.57.090 is amended to read: 20 Sec. 45.57.090. Consent to service of process. A nonresident offeror, except 21 a foreign corporation which has complied with AS 10.06.705 - 10.06.788 22 [AS 10.05.597 - 10.05.696], who makes a takeover bid affecting an offeree company 23 is considered to have appointed the commissioner of commerce, community, and 24 economic development as the offeror's agent upon whom may be served, in any matter 25 arising under this chapter, any process, notice, order or demand except one issued by 26 the department. Service may be made on the commissioner or any of the 27 commissioner's staff at the commissioner's office. The commissioner shall send it by 28 registered or certified mail addressed to the offeror at the latest address on file and 29 keep a record of it. A process, notice, order or demand issued by the department shall 30 be served by being mailed by the commissioner or any of the commissioner's staff by 31 registered or certified mail addressed to the offeror at the latest address on file.

01 * Sec. 68. AS 45.63.080(a) is amended to read: 02 (a) AS 45.63.010, 45.63.015, 45.63.020, and AS 45.63.030(c) and (d) do not 03 apply to a sale or attempted sale 04 (1) of a security regulated under AS 45.55 or a security that is 05 exempted by AS 45.55.900 from regulation under AS 45.55; 06 (2) by a person registered with the United States Securities and 07 Exchange Commission when acting within the scope of the person's Securities and 08 Exchange Commission license; 09 (3) by an issuer, or a subsidiary of an issuer, of a class of securities that 10 is 11 (A) subject to 15 U.S.C. 78a - 78lll (Securities Exchange Act of 12 1934); and 13 (B) either registered under 15 U.S.C. 78a - 78lll (Securities 14 Exchange Act of 1934) or exempt from registration under 15 U.S.C. 15 78l(g)(2)(A) - (C) or (E) - (H); 16 (4) by a real estate broker, associate real estate broker, or real estate 17 salesperson licensed under AS 08.88 and acting in a capacity covered by the license; 18 (5) by a person who has a certificate of registration under AS 08.18 to 19 operate as a contractor and is acting in a capacity covered by the certificate of 20 registration; 21 (6) by an embalmer or funeral director licensed under AS 08.42 and 22 acting in a capacity covered by the license; 23 (7) by an insurance agent, general agent, broker, solicitor, or adjuster 24 licensed under AS 21.27 and acting in a capacity covered by the license; 25 (8) by a person who is primarily soliciting the sale of a subscription to, 26 or advertising in, a newspaper of general circulation; 27 (9) by a charitable organization or paid solicitor if the organization or 28 solicitor is registered to make charitable solicitations under AS 45.68 and is acting in a 29 capacity that is covered by the registration; 30 (10) by a person who is primarily soliciting the sale of a sound 31 recording or book

01 (A) if the person 02 (i) has no minimum purchase requirements; 03 (ii) provides written notice of the buyer's right to cancel 04 at any time; and 05 (iii) allows the buyer to return the sound recording or 06 book and obtain a full refund; or 07 (B) through a membership in a book or record club 08 (i) where the club provides the buyer with a form that 09 the buyer may use to instruct the club not to ship the offered 10 merchandise; and 11 (ii) that is regulated by the Federal Trade Commission 12 as a negative option plan under 16 C.F.R. 425; 13 (11) by a publisher, or a publisher's agent operating under a written 14 agreement between a publisher and the agent, who is soliciting the sale of a publisher's 15 magazine if 16 (A) the buyer has the right to review the magazine and cancel 17 the subscription for the magazine within seven days after receipt of the 18 magazine or at the time the invoice is received by the buyer, whichever is later; 19 a cancellation request is timely if the request is mailed, properly addressed and 20 postmarked, postage prepaid, within seven days after receipt of the magazine 21 or invoice, whichever is later; 22 (B) the right of cancellation and refund is fully disclosed in 23 writing to the buyer before or at the time the initial invoice is received by the 24 buyer; 25 (12) of services provided by a cable television system operating under 26 a franchise issued by a municipality; 27 (13) by a person who is soliciting for a business, or for an affiliate of a 28 business, that is regulated by the Regulatory Commission of Alaska; 29 (14) by a person whose solicitation is solely for telephone answering 30 services provided by the person or the person's employer; 31 (15) of property from a mail order catalog that is published on a

01 regular, periodic basis and that describes or pictures the items for sale and prominently 02 provides the specific price of each item; 03 (16) by a supervised financial institution or the parent, subsidiary, or 04 affiliate of a supervised financial institution; in this paragraph, "supervised financial 05 institution" means a commercial bank, savings bank, mutual savings bank, trust 06 company, savings and loan association, credit union, industrial loan company, 07 personal property broker, consumer finance lender, commercial finance lender, or 08 other financial institution if the financial institution is subject to regulation by this 09 state or the United States; 10 (17) by an insurer or the parent, subsidiary, or affiliate of an insurer; 11 (18) by a person who solicits a sale by a contact by telephonic means 12 without intending to complete the sales presentation during the contact, who does not 13 complete the sales presentation during the contact, and who only completes the sales 14 presentation at a later meeting in person, unless at the later meeting the solicitor 15 attempts to collect payment for property or services delivered before the later meeting; 16 (19) of an item of personal property, including a food product, that is 17 made by hand by an individual, if the sale or attempted sale of the item is made by the 18 individual who made the item; in this paragraph, "made by hand" includes the use of 19 ordinary household devices if the majority of the value of the item is added by the 20 labor of the individual. 21 * Sec. 69. AS 46.03.822(c) is amended to read: 22 (c) For purposes of (b)(1)(B) of this section, a third party or an agent of a third 23 party is in privity of contract with the person who is otherwise liable, if the third party 24 or its agent and the person are parties to a land contract, deed, or other instrument 25 transferring title or possession of the real property on which the facility in question is 26 located, unless that property was acquired by the person after the disposal or 27 placement of the hazardous substance on, in, or at the facility, and the person 28 establishes that the person has satisfied the requirements of (b)(1)(B) of this section 29 and establishes that 30 (1) at the time the person acquired the facility the person did not know 31 and had no reason to know that a hazardous substance that is the subject of the release

01 or threatened release was disposed of on, in, or at the facility; 02 (2) the person is a governmental entity that acquired the facility by 03 escheat, or through another involuntary transfer or acquisition, or through the exercise 04 of eminent domain authority by purchase or condemnation; 05 (3) the person is a corporation organized under 43 U.S.C. 1601 et seq. 06 [43 U.S.C. 1601 - 1629e] (Alaska Native Claims Settlement Act) that acquired the 07 facility under those sections; 08 (4) the person acquired the facility by inheritance or bequest; or 09 (5) the person is a state governmental entity and the state acquired the 10 facility under Public Law 85 - 508 (Alaska Statehood Act). 11 * Sec. 70. AS 46.14.010(b) is amended to read: 12 (b) Unless the governor has determined that an emergency exists that requires 13 emergency regulations under AS 44.62.250, the department may adopt the following 14 types of regulations only after the procedures established in (a), (c), and (d) of this 15 section and compliance with AS 46.14.015: 16 (1) a regulation that establishes an ambient air quality standard for an 17 air pollutant for which there is no corresponding federal standard; 18 (2) a regulation that establishes an ambient air quality standard or 19 emission standard that is more stringent than a corresponding federal standard; 20 (3) a regulation that establishes an equivalent emission limitation for a 21 hazardous air pollutant for which the federal administrator has not adopted a 22 corresponding maximum achievable control technology standard; or 23 (4) a regulation that regulates emissions from an emissions 24 [EMISSION] unit or stationary source or establishes an emission standard under the 25 authority of AS 46.14.120(e) or 46.14.130(c)(2). 26 * Sec. 71. AS 46.14.010(c) is amended to read: 27 (c) In preparation for peer review under AS 46.14.015 and before adopting a 28 regulation described under (b) of this section, the department shall 29 (1) find in writing that exposure profiles and either meteorological 30 conditions or emissions [EMISSION] unit characteristics in the state or in an area of 31 the state reasonably require the ambient air quality standard, or emission standard to

01 protect human health and welfare or the environment; this paragraph does not apply to 02 a regulation under (b)(3) of this section; 03 (2) find in writing that the proposed standard or emission limitation is 04 technologically feasible; and 05 (3) prepare a written analysis of the economic feasibility of the 06 proposal. 07 * Sec. 72. AS 46.14.010(d) is amended to read: 08 (d) Before adopting a regulation described in (b)(2) of this section, the 09 department shall find in writing that exposure profiles and either meteorological 10 conditions or emissions [EMISSION] unit characteristics are significantly different in 11 the state or in an area of the state from those upon which the corresponding federal 12 regulation is based. 13 * Sec. 73. AS 46.14.010(e) is amended to read: 14 (e) When incorporated into more than one permit, emission standards and 15 limitations, emissions monitoring and reporting requirements, and compliance 16 verification requirements that are generally applicable statewide or are generally 17 applicable to individual emissions [EMISSION] unit or stationary source types shall 18 be adopted in regulation unless they have been requested by the owner and operator to 19 whom the permit is issued. The department shall, by regulation, adopt a standard, 20 limitation, or requirement described in this subsection as soon as its general 21 applicability is reasonably foreseeable. 22 * Sec. 74. AS 46.14.010(f) is amended to read: 23 (f) An emission standard adopted by the department may be applicable to 24 individual emissions [EMISSION] units within a stationary source or to all emissions 25 [EMISSION] units within a stationary source. For purposes of determining 26 compliance with applicable regulations and with permit limitations, the department 27 may allow numerical averaging of the emissions of each air pollutant from several 28 emissions [EMISSION] units within a stationary source if 29 (1) requested by the owner and operator; and 30 (2) allowed under 42 U.S.C. 7401 - 7671q (Clean Air Act), as 31 amended, and regulations adopted under those sections.

01 * Sec. 75. AS 46.14.020 is amended to read: 02 Sec. 46.14.020. Classification of stationary sources or emissions 03 [EMISSION] units; reporting. (a) The department, by regulation, may classify 04 stationary sources or emissions [EMISSION] units that, in the department's 05 determination, are likely to cause or contribute to air pollution, according to the levels 06 and types of emissions and other characteristics that relate to air quality. The 07 department may make a classification under this subsection applicable to the state as a 08 whole or to a designated area of the state. The department shall base the classifications 09 on consideration of health, economic, and social factors, sensitivity of the receiving 10 environment, and physical effects on property. 11 (b) The department or a local air quality control program authorized under 12 AS 46.14.400 may require an owner and operator of a stationary source or emissions 13 [EMISSION] unit classified under this section to report information to the department 14 or the authorized local program concerning location, size, and height of stacks or area 15 emissions [EMISSION] units, processes employed, fuels used, the nature and time 16 periods or duration of emissions, and other information relevant to air quality that is 17 available or reasonably capable of being calculated and compiled. 18 * Sec. 76. AS 46.14.130(b) is amended to read: 19 (b) Except for the owner and operator of a stationary source exempted under 20 AS 46.14.120(e) or (f), the owner and operator of a stationary source shall obtain an 21 operating permit from the department if the stationary source 22 (1) emits or has the potential to emit 100 TPY or more of a regulated 23 air pollutant; 24 (2) emits or has the potential to emit 10 TPY or more of a hazardous 25 air pollutant or 25 TPY or more, in the aggregate, of two or more hazardous air 26 pollutants; 27 (3) contains an emissions [EMISSION] unit subject to federal new 28 source performance standards under 42 U.S.C. 7411 (Clean Air Act, sec. 111) or 29 national emission standards for hazardous air pollutants issued under 42 U.S.C. 7412 30 (Clean Air Act, sec. 112); or 31 (4) contains another stationary source designated by the federal

01 administrator by regulation. 02 * Sec. 77. AS 46.14.180 is amended to read: 03 Sec. 46.14.180. Monitoring. Monitoring by the owner and operator of stack 04 emissions or ambient air quality shall be required by the department only for purposes 05 of demonstrating compliance with applicable permit program requirements. 06 Monitoring requirements must be reasonable and based on test methods, analytical 07 procedures, and statistical conventions approved by the federal administrator or the 08 department or otherwise generally accepted as scientifically competent. Unless 09 otherwise agreed to by the owner and operator and the department, 10 (1) the department may not require an owner and operator of an 11 emissions [EMISSION] unit to monitor emissions or ambient air quality solely for the 12 purpose of scientific investigation or research; and 13 (2) monitoring activities must be consistent with the applicable 14 emission standards and their permit or permit application requirements. 15 * Sec. 78. AS 46.14.190(a) is amended to read: 16 (a) Except as provided in (b) of this section, the department shall issue only a 17 single operating permit to a stationary source, regardless of whether the stationary 18 source contains a single emissions [EMISSION] unit or multiple emissions 19 [EMISSION] units. 20 * Sec. 79. AS 46.14.210 is amended to read: 21 Sec. 46.14.210. General operating permits. After notice and opportunity for 22 public comment and hearing, the department may, unless the permit is disapproved by 23 the federal administrator, establish a general operating permit that would be applicable 24 to more than one stationary source determined by the department to be similar in 25 emissions [EMISSION] unit structure. A general operating permit must contain 26 provisions that meet the requirements of this chapter that are applicable to operating 27 permits. A general operating permit issued to a particular person takes effect when the 28 person's application is determined to be complete unless the department notifies the 29 applicant that the general permit is not applicable to the person's stationary source. 30 * Sec. 80. AS 46.14.250(c) is amended to read: 31 (c) For a stationary source that begins operation during a fiscal year, the

01 department shall prorate the first year's fee to cover the time period occurring before 02 the next annual payment date. The owner or operator shall pay the initial emission fee 03 upon commencement of lawful stationary source operation unless authorized to pay by 04 installments under (b) of this section. The first year's emission fee may not duplicate a 05 fee paid by a permittee under AS 44.46.025 for the same emissions [EMISSION] units 06 for the same time period. If the fees would otherwise be duplicative, the department 07 shall provide a credit toward the emission fee in the amount of the unused balance of 08 the fee collected under AS 44.46.025. The unused balance to be credited shall be 09 based on prorating the total original fee under AS 44.46.025 for the time period for 10 which an emission fee applies. 11 * Sec. 81. AS 46.14.250(f) is amended to read: 12 (f) The [AFTER THE TWO YEARS DESCRIBED IN (e) OF THIS 13 SECTION, THE] department shall set the emission fee rate in regulation to implement 14 the policy established in (d) of this section. The department shall base the regulation 15 on the findings of a report, which the department shall make available to the public 16 with proper notice before adoption of the regulation, that examines 17 (1) fees assessed; 18 (2) alternative fee rates or formulas; 19 (3) types, sizes, or categories of stationary sources, their respective 20 emission quantities, and their previous or proposed fee burden; 21 (4) apparent inequities encountered in the initial fee rate; 22 (5) total costs incurred or anticipated to be incurred under (h) of this 23 section; and 24 (6) other factors that ensure fair distribution of the costs described in 25 (h) of this section. 26 * Sec. 82. AS 46.14.400(c) is amended to read: 27 (c) If the department finds that the location, character, or extent of particular 28 concentrations of population, air pollutant emissions [EMISSION] units, the 29 geographic, topographic, or meteorological considerations, or a combination of these 30 factors make impracticable the maintenance of appropriate levels of air quality without 31 an areawide air pollution control program, the department may determine the

01 boundaries within which a local air quality control program is necessary and direct 02 that a local air quality control program spanning those boundaries is the only 03 acceptable alternative to direct state administration. 04 * Sec. 83. AS 46.14.400(f) is amended to read: 05 (f) A municipality or a local air quality district administering a program under 06 this section shall administer its local air quality control program according to this 07 chapter, regulations adopted under those sections, and its cooperative agreement under 08 (d) of this section. A municipality or local air quality district's program may, upon a 09 finding by the local agency and an affirmative agreement by the department, establish 10 a more stringent requirement than the stationary emissions [EMISSION] unit permit 11 program authorized under this chapter if public health or air quality effects provide a 12 reasonable basis to regulate the emissions [EMISSION] unit with the additional or 13 more stringent requirement and the municipality or district has used procedures 14 substantially equivalent to those required under AS 46.14.010 - 46.14.015 before 15 establishing the more stringent requirement. This subsection does not prohibit a 16 municipality or local air quality control district from establishing a mobile source 17 emissions program more stringent than the state program without making findings of 18 public health or air quality effects or using procedures substantially equivalent to those 19 required under AS 46.14.010 - 46.14.015. In this subsection, "mobile source" does not 20 include tank vessels or other watercraft. 21 * Sec. 84. AS 46.14.410(e) is amended to read: 22 (e) If the department finds that control of a particular class of stationary source 23 or emissions [EMISSION] unit, because of its complexity or magnitude, is beyond the 24 reasonable capability of the municipality or the local air quality district or may be 25 more efficiently and economically controlled at the state level, the department may 26 assume and retain jurisdiction over the class of stationary source or emissions 27 [EMISSION] unit. Classifications under this subsection may be based on the nature of 28 stationary sources or emissions [EMISSION] units involved, their size relative to the 29 size of the communities in which they are located, or another basis established by the 30 department. 31 * Sec. 85. AS 46.14.515(a) is amended to read:

01 (a) An officer or employee of the department designated by the commissioner 02 or an inspector authorized by the commissioner and certified under regulations 03 adopted under AS 46.14.140(a)(14) may, upon presentation of credentials and at 04 reasonable times with the consent of the owner or operator, enter upon or through any 05 premises of a stationary source regulated under this chapter to 06 (1) inspect and copy any records required to be maintained; 07 (2) inspect any emissions [EMISSION] unit, monitoring equipment, or 08 method required to be used; or 09 (3) sample any emissions that the owner and operator of the stationary 10 source is required to sample. 11 * Sec. 86. AS 46.14.540(a) is amended to read: 12 (a) When the commissioner finds that an act of God, act of war, act of 13 terrorism, or similar catastrophe necessitates emergency use of an unpermitted 14 emissions [EMISSION] unit or emergency use of a permitted emissions [EMISSION] 15 unit in a manner not authorized by the permit, the commissioner may waive 16 procedural requirements of this chapter and issue an order to authorize emergency use 17 of the emissions [EMISSION] unit. When acting under this section, the commissioner 18 shall impose conditions necessary to protect life, human health, welfare, property, and 19 the environment and may impose other conditions the commissioner finds necessary 20 and appropriate. 21 * Sec. 87. AS 46.14.560 is amended to read: 22 Sec. 46.14.560. Unavoidable malfunctions and emergencies. Excess 23 emissions caused by an unavoidable emergency, malfunction, or nonroutine repairs of 24 an emissions [EMISSION] unit including pollution control equipment or process 25 equipment constitute an affirmative defense, when asserted under regulations adopted 26 under AS 46.14.140, to an action brought for noncompliance with a technology-based 27 emission standard. This section does not limit the department's power to enjoin the 28 emission or require corrective action. This provision is in addition to any emergency 29 or upset provision contained in an applicable requirement. 30 * Sec. 88. AS 46.14.990(11) is amended to read: 31 (11) "emissions [EMISSION] unit" has the meaning given in 40

01 C.F.R. 51.166(b); 02 * Sec. 89. AS 46.14.990(20) is amended to read: 03 (20) "operator" means a person or persons who direct, control, or 04 supervise a stationary source or emissions [EMISSION] unit that has the potential to 05 emit an air pollutant to the atmosphere; 06 * Sec. 90. AS 46.14.990(21) is amended to read: 07 (21) "owner" means a person or persons with a proprietary or 08 possessory interest in a stationary source or emissions [EMISSION] unit that has the 09 potential to emit an air pollutant to the atmosphere; 10 * Sec. 91. AS 46.15.165(c) is amended to read: 11 (c) Upon initiation of the adjudication, the commissioner shall 12 (1) serve the order on each applicant, certificate holder, or permittee 13 listed in the department's records within the adjudication area; 14 (2) serve the order on any agency of the federal, state, or a local 15 government with management authority over land or water within the adjudication 16 area; 17 (3) serve the order on any person who owns or claims land within the 18 adjudication area if the land is held in trust by the United States for the person or if the 19 patent, deed, or certificate to the land from the United States was issued under 25 20 U.S.C. 334 (Indian General Allotment Act of February 8, 1887, 24 Stat. 389, as 21 amended and supplemented), 25 U.S.C. 372 (the Allotment Act of June 25, 1910, 36 22 Stat. 855), 43 U.S.C. 270-1, 270-2 (the Allotment Act of May 17, 1906, 34 Stat. 197), 23 any other allotment act, or the Alaska Native Townsite Act of May 25, 1926, 44 Stat. 24 629, and serve the order on the United States on behalf of the person; 25 (4) serve the order on the United States and the appropriate governing 26 body of the Annette Island Reserve established by 25 U.S.C. 495 (the Act of March 3, 27 1891, 26 Stat. 1101) if the land or water, including hydrologically interconnected 28 water, of the Annette Island Reserve is within the adjudication area; 29 (5) serve the order on any other person claiming a federal reserved 30 water right within the adjudication area; 31 (6) serve the regional corporation and village corporation established

01 under 43 U.S.C. 1601 et seq. [43 U.S.C. 1601 - 1628] (Alaska Native Claims 02 Settlement Act) that has a pending land selection or has acquired ownership to land 03 under that act that is located within the adjudication area; and 04 (7) serve the order on each mining claimant of record with the United 05 States and the state within the adjudication area as of the date of the order initiating 06 the administrative adjudication. 07 * Sec. 92. AS 47.07.020(b) is amended to read: 08 (b) In addition to the persons specified in (a) of this section, the following 09 optional groups of persons for whom the state may claim federal financial 10 participation are eligible for medical assistance: 11 (1) persons eligible for but not receiving assistance under any plan of 12 the state approved under 42 U.S.C. 1381 - 1383c (Title XVI, Social Security Act, 13 Supplemental Security Income) or a federal program designated as the successor to the 14 aid to families with dependent children program; 15 (2) persons in a general hospital, skilled nursing facility, or 16 intermediate care facility, who, if they left the facility, would be eligible for assistance 17 under one of the federal programs specified in (1) of this subsection; 18 (3) persons under [AGE] 21 years of age who are under supervision of 19 the department, for whom maintenance is being paid in whole or in part from public 20 funds, and who are in foster homes or private child-care institutions; 21 (4) aged, blind, or disabled persons, who, because they do not meet 22 income and resources requirements, do not receive supplemental security income 23 under 42 U.S.C. 1381 - 1383c (Title XVI, Social Security Act), and who do not 24 receive a mandatory state supplement, but who are eligible, or would be eligible if 25 they were not in a skilled nursing facility or intermediate care facility to receive an 26 optional state supplementary payment; 27 (5) persons under [AGE] 21 years of age who are in an institution 28 designated as an intermediate care facility for the mentally retarded and who are 29 financially eligible as determined by the standards of the federal program designated 30 as the successor to the aid to families with dependent children program; 31 (6) persons in a medical or intermediate care facility whose income

01 while in the facility does not exceed $1,656 a month but who would not be eligible for 02 an optional state supplementary payment if they left the hospital or other facility; 03 (7) persons under [AGE] 21 years of age who are receiving active 04 treatment in a psychiatric hospital and who are financially eligible as determined by 05 the standards of the federal program designated as the successor to the aid to families 06 with dependent children program [AID TO FAMILIES WITH DEPENDENT 07 CHILDREN PROGRAM]; 08 (8) persons under [AGE] 21 years of age and not covered under (a) of 09 this section, who would be eligible for benefits under the federal program designated 10 as the successor to the aid to families with dependent children program, except that 11 they have the care and support of both their natural and adoptive parents; 12 (9) pregnant women not covered under (a) of this section and who 13 meet the income and resource requirements of the federal program designated as the 14 successor to the aid to families with dependent children program; 15 (10) persons under [AGE] 21 years of age not covered under (a) of 16 this section who the department has determined cannot be placed for adoption without 17 medical assistance because of a special need for medical or rehabilitative care and who 18 the department has determined are hard-to-place children eligible for subsidy under 19 AS 25.23.190 - 25.23.210; 20 (11) persons who can be considered under 42 U.S.C. 1396a(e)(3) (Title 21 XIX, Social Security Act, Medical Assistance) to be individuals with respect to whom 22 a supplemental security income is being paid under 42 U.S.C. 1381 - 1383c (Title 23 XVI, Social Security Act) because they meet all of the following criteria: 24 (A) they are 18 years of age or younger and qualify as disabled 25 individuals under 42 U.S.C. 1382c(a) (Title XVI, Social Security Act); 26 (B) the department has determined that 27 (i) they require a level of care provided in a hospital, 28 nursing facility, or intermediate care facility for the mentally retarded; 29 (ii) it is appropriate to provide their care outside of an 30 institution; and 31 (iii) the estimated amount that would be spent for

01 medical assistance for their individual care outside an institution is not 02 greater than the estimated amount that would otherwise be expended 03 individually for medical assistance within an appropriate institution; 04 (C) if they were in a medical institution, they would be eligible 05 for medical assistance under other provisions of this chapter; and 06 (D) home and community-based services under a waiver 07 approved by the federal government are either not available to them under this 08 chapter or would be inappropriate for them; 09 (12) disabled persons, as described in 42 U.S.C. 10 1396a(a)(10)(A)(ii)(XIII), who are in families whose income, as determined under 11 applicable federal regulations or guidelines, is less than 250 percent of the official 12 poverty line applicable to a family of that size according to the federal Office of 13 Management and Budget, and who, but for earnings in excess of the limit established 14 under 42 U.S.C. 1396d(q)(2)(B), would be considered to be individuals with respect to 15 whom a supplemental security income is being paid under 42 U.S.C. 1381 - 1383c; a 16 person eligible for assistance under this paragraph who is not eligible under another 17 provision of this section shall pay a premium or other cost-sharing charges according 18 to a sliding fee scale that is based on income as established by the department in 19 regulations; 20 (13) persons under [AGE] 19 years of age who are not covered under 21 (a) of this section and whose household income does not exceed 22 (A) $1,635 a month if the household consists of one person; 23 (B) $2,208 a month if the household consists of two persons; 24 (C) $2,782 a month if the household consists of three persons; 25 (D) $3,355 a month if the household consists of four persons; 26 (E) $3,928 a month if the household consists of five persons; 27 (F) $4,501 a month if the household consists of six persons; 28 (G) $5,074 a month if the household consists of seven persons; 29 (H) $5,647 a month if the household consists of eight persons; 30 (I) $5,647 a month, plus an additional $574 a month for each 31 extra person above eight persons who is in the household if the household

01 consists of nine persons or more; 02 (14) pregnant women who are not covered under (a) of this section and 03 whose household income does not exceed 04 (A) $2,208 a month if the household consists of two persons; 05 (B) $2,782 a month if the household consists of three persons; 06 (C) $3,355 a month if the household consists of four persons; 07 (D) $3,928 a month if the household consists of five persons; 08 (E) $4,501 a month if the household consists of six persons; 09 (F) $5,074 a month if the household consists of seven persons; 10 (G) $5,647 a month if the household consists of eight persons; 11 (H) $5,647 a month, plus an additional $574 a month for each 12 extra person above eight persons who is in the household if the household 13 consists of nine persons or more; 14 (15) persons who have been diagnosed with breast or cervical cancer 15 and who are eligible for coverage under 42 U.S.C. 1396a(a)(10)(A)(ii)(XVIII). 16 * Sec. 93. AS 47.08.060(c) is amended to read: 17 (c) In applying the formula to determine the applicant's share, the total gross 18 income and the total assets of the family of the applicant may be taken into account, 19 with the following exceptions: 20 (1) the applicant's permanent place of abode; 21 (2) one noncommercial vehicle; 22 (3) tools, equipment, vehicles and other assets required in a trade or 23 business; 24 (4) ordinary household and personal effects; 25 (5) $1,000 of liquid assets; 26 (6) all nonliquid assets unless this exclusion would bring about an 27 inequitable result; however, all income derived from this property shall be taken into 28 consideration in determining the recipient's gross income; 29 (7) inalienable shares in a Native corporation created under 43 U.S.C. 30 1601 et seq. [43 U.S.C. 1601-1628] (Alaska Native Claims Settlement Act), for the 31 period of their inalienability as specified in the Act;

01 (8) Alaska longevity bonus payments; 02 (9) any other assets specifically restricted for the use of the recipient 03 by state or federal law. 04 * Sec. 94. AS 47.55.020(d) is amended to read: 05 (d) Notwithstanding AS 47.55.070 and (b) of this section, a resident of a home 06 whose income, assets, and other resources are insufficient to pay the monthly rate set 07 under AS 47.55.030(b), and who does not have private insurance to cover the cost of 08 care, qualifies for payment assistance if the resident is otherwise in compliance with 09 requirements under this chapter. The amount of payment assistance equals the amount 10 needed, when added to other income and assets of the resident, to pay the monthly rate 11 set under AS 47.55.030(b). Payment assistance received by a home resident is a debt 12 to the state. In determining the amount of payment assistance for which a home 13 resident qualifies, the following income, assets, and other resources of the resident 14 shall be disregarded: 15 (1) income from any source in an amount up to $100 a month as 16 established by the department by regulation; 17 (2) the following assets received under 43 U.S.C. 1601 et seq. [43 18 U.S.C. 1601 - 1629g] (Alaska Native Claims Settlement Act): 19 (A) cash dividends and other income equal to at least $2,000 as 20 established by the department by regulation; 21 (B) stock; 22 (C) noncash dividends from stock; and 23 (D) land; 24 (3) a permanent fund dividend issued under AS 43.23; 25 (4) compensation to volunteers under the federal retired and senior 26 volunteers (42 U.S.C. 5001), foster grandparents (42 U.S.C. 5011), and senior 27 companion (42 U.S.C. 5013) programs made in accordance with 42 U.S.C. 5044(f); 28 (5) federal World War II restitution payments made under 50 U.S.C. 29 App. 1989b-4 and c-5; 30 (6) payments under AS 18.67 (Violent Crimes Compensation Board); 31 (7) an amount, determined by the department by regulation, that is

01 sufficient for burial expenses of the resident, the resident's spouse, and dependents of 02 the resident; 03 (8) real property being used as the primary residence of the resident's 04 spouse or a dependent of the resident; 05 (9) other real or personal property equal to at least a total value of up 06 to $10,000 as established by the department by regulation. 07 * Sec. 95. AS 14.08.031(d); AS 18.50.950(4); AS 44.66.020, 44.66.030; and 08 AS 46.14.250(e) are repealed. 09 * Sec. 96. This Act takes effect immediately under AS 01.10.070(c).