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SCS CSHB 6(JUD): "An Act authorizing the governor to remove or suspend a member of the Board of Regents of the University of Alaska for good cause; and establishing a procedure for the removal or suspension of a regent."

00 SENATE CS FOR CS FOR HOUSE BILL NO. 6(JUD) 01 "An Act authorizing the governor to remove or suspend a member of the Board of 02 Regents of the University of Alaska for good cause; and establishing a procedure for the 03 removal or suspension of a regent." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 06 to read: 07 LEGISLATIVE FINDINGS AND PURPOSES. (a) The legislature finds that 08 (1) the framers of the Constitution of the State of Alaska intended to insulate 09 the University of Alaska and the Board of Regents from politics, but did not intend to 10 immunize the University of Alaska and the Board of Regents from appropriate nonpolitical 11 legislative and executive branch oversight; 12 (2) the legislature has the power to pass laws that pertain to the University of 13 Alaska; and 14 (3) under AS 14.40.170(b)(1), the legislature has delegated to the Board of

01 Regents the power to "adopt reasonable rules, orders, and plans with reasonable penalties for 02 the good government of the university and for the regulation of the Board of Regents"; 03 however, it is not clear that the Board of Regents has the constitutional authority to suspend or 04 remove an officer who has been appointed by the governor and confirmed by the legislature. 05 (b) The purposes of AS 14.40.155, added by sec. 2 of this Act, are to 06 (1) clarify that the governor may remove a regent only for good cause; 07 (2) prescribe a due process procedure under which the governor may remove a 08 regent for good cause; 09 (3) prescribe a due process procedure under which, in certain circumstances, 10 the governor may suspend a regent; and 11 (4) accomplish each of the above purposes in a manner that ensures the 12 University of Alaska and the Board of Regents remain insulated from politics. 13 * Sec. 2. AS 14.40 is amended by adding a new section to read: 14 Sec. 14.40.155. Suspension and removal of regents. (a) The governor may, 15 after providing notice and an opportunity for a hearing, suspend a member of the 16 Board of Regents while a final disposition is pending on 17 (1) a criminal complaint, presentment, information, or indictment 18 involving a felony in any jurisdiction; 19 (2) an information or formal criminal charges of a misdemeanor 20 described under (g)(3) of this section; 21 (3) a probable cause determination of a knowing ethics violation under 22 AS 39.52 that results in an accusation under consideration before the personnel board; 23 (4) a written complaint under consideration before the governor, 24 signed under oath by the person making the complaint, that alleges malfeasance or 25 nonfeasance in office as described in (g)(4) of this section, if the governor determines, 26 after an investigation, that there is probable cause to believe that malfeasance or 27 nonfeasance in office has occurred; a determination of probable cause under this 28 paragraph 29 (A) must specify with particularity the factual basis for the 30 determination; 31 (B) must include objective evidence of substantial and material

01 malfeasance or nonfeasance; and 02 (C) may not be based on political differences or the 03 discretionary performance of a lawful act or a prescribed duty; or 04 (5) a formal allegation or charge by a professional or occupational 05 licensing body alleging or finding a violation of licensing statutes or regulations that is 06 related to the regent's ability or fitness to serve as a regent. 07 (b) The governor may remove a member of the Board of Regents for good 08 cause by providing to the member an accusation and an opportunity for a hearing and 09 judicial review. 10 (c) Notwithstanding the procedure under AS 44.62.390, a regent who has been 11 suspended under (a) of this section may, at any time, request a hearing to 12 (1) defend against the grounds for the suspension stated in the 13 accusation; or 14 (2) lift the suspension. 15 (d) If a hearing is to be held under this section, the governor shall delegate the 16 conduct of the hearing to the office of administrative hearings under AS 44.64.030(b). 17 If a hearing is requested, the hearing officer shall prepare a proposed decision under 18 AS 44.62.500(b) 19 (1) to remove a regent based on clear and convincing evidence of good 20 cause for removal; 21 (2) not to remove a regent; or 22 (3) to continue a suspension or lift a suspension of a regent. 23 (e) AS 44.62.330 - 44.62.630 apply to all proceedings under this section. 24 (f) After a final decision by the governor that suspends a regent under (a) of 25 this section or removes a regent for good cause under (b) of this section, the governor 26 shall file with the lieutenant governor a copy of the allegations made against the 27 former regent, the governor's findings on each of the allegations, and a complete 28 record of the suspension or removal proceedings. 29 (g) In this section, "good cause" means 30 (1) a violation of AS 39.52 (Alaska Executive Branch Ethics Act) that 31 results in a recommendation of removal under AS 39.52.410(b)(3);

01 (2) a conviction of a felony in any jurisdiction; 02 (3) a conviction of a misdemeanor in any jurisdiction if the 03 misdemeanor involves 04 (A) dishonesty; 05 (B) breach of trust; or 06 (C) the University of Alaska; 07 (4) substantial and material malfeasance or nonfeasance in office that 08 is not based on political differences or the discretionary performance of a lawful act or 09 prescribed duty; in this paragraph "malfeasance or nonfeasance in office" includes 10 (A) misconduct in office; 11 (B) an inability to serve for an extended period of time; 12 (C) neglect of duty; 13 (D) incompetence; 14 (E) unjustified failure to perform the duties of the Board of 15 Regents; 16 (5) a violation of a professional or occupational licensing statute or 17 regulation that is related to the regent's fitness to serve as a regent, resulting in the 18 revocation or suspension of a professional or occupational license issued under state 19 law; or 20 (6) a failure to possess the qualifications of a regent under 21 AS 14.40.130. 22 * Sec. 3. AS 44.64.030(a) is amended to read: 23 (a) The office shall conduct all adjudicative administrative hearings required 24 under the following statutes or under regulations adopted to implement the statutes: 25 (1) AS 04.11.510(b)(1) and (c) (alcoholic beverages license); 26 (2) AS 05.15 (charitable gaming); 27 (3) AS 05.20 (recreational devices); 28 (4) AS 05.90.001 (special racing events); 29 (5) AS 06 (banks, financial institutions, and fund claims), except as 30 provided otherwise by AS 06.60.590; 31 (6) AS 08 (occupational licensing), other than AS 08.08,

01 AS 08.18.125, and AS 08.62.046; 02 (7) AS 10.06 (Alaska Corporations Code); 03 (8) AS 10.13 (Alaska BIDCO Act); 04 (9) AS 10.25.375 (Electric and Telephone Cooperative Act); 05 (10) AS 10.50.408 (limited liability companies); 06 (11) AS 14.11.016 (education-related facility grants); 07 (12) AS 14.18 (discrimination in public education); 08 (13) AS 14.25.006 (teachers' retirement system); 09 (14) AS 14.25.175 (waiver of adjustments under teachers' defined 10 benefit plan); 11 (15) AS 14.40.155 (suspension and removal of regents); 12 (16) [(15)] AS 14.48 (postsecondary educational institutions); 13 (17) [(16)] AS 17.20 (Alaska Food, Drug, and Cosmetic Act), other 14 than AS 17.20.060 and 17.20.360; 15 (18) [(17)] AS 21.09, AS 21.22.190, AS 21.27, except under 16 AS 21.27.420(d), AS 21.34, AS 21.36, AS 21.69, AS 21.86.200, AS 21.87, and 17 AS 21.96 (insurance); 18 (19) [(18)] AS 25.27 (child support services); 19 (20) [(19)] AS 32.06 (Uniform Partnership Act); 20 (21) [(20)] AS 34.45 (unclaimed property); 21 (22) [(21)] AS 34.55.024 and 34.55.026 (Uniform Land Sales Practices 22 Act); 23 (23) [(22)] AS 36.30 (State Procurement Code), other than 24 AS 36.30.627(a)(2); 25 (24) [(23)] AS 38.05.065 (contracts for sale of state land); 26 (25) [(24)] AS 39.30.165 (supplemental benefits system); 27 (26) [(25)] AS 39.30.335 (teachers' and public employees' health 28 reimbursement arrangement plan); 29 (27) [(26)] AS 39.35.006 (public employees' retirement system); 30 (28) [(27)] AS 39.35.522 (waiver of adjustments under public 31 employees' defined benefit plan);

01 (29) [(28)] AS 39.45.055 (public employees' deferred compensation 02 program); 03 (30) [(29)] AS 39.52 (Alaska Executive Branch Ethics Act); 04 (31) [(30)] AS 43.23 (permanent fund dividends); 05 (32) [(31)] AS 43.70 (Alaska Business License Act); 06 (33) [(32)] AS 44.50 (notaries public); 07 (34) [(33)] AS 44.77 (claims against the state); 08 (35) [(34)] AS 45.48.080(c) (breach of security involving personal 09 information); 10 (36) [(35)] AS 45.30.040 (mobile homes); 11 (37) [(36)] AS 45.55 (Alaska Securities Act); 12 (38) [(37)] AS 45.57 (Takeover Bid Disclosure Act); 13 (39) [(38)] AS 46 (water, air, energy, and environmental conservation), 14 other than AS 46.03.820, 46.03.850, AS 46.39, and AS 46.40; 15 (40) [(39)] AS 47.32 (licensing by the Department of Health and 16 Social Services); 17 (41) [(40)] AS 47.45 (longevity bonuses).