00 CS FOR HOUSE BILL NO. 400(L&C) 01 "An Act combining parts of the Department of Commerce and Economic 02 Development and parts of the Department of Community and Regional Affairs by 03 transferring some of their duties to a new Department of Commerce and Rural 04 Development; transferring some of the duties of the Department of Commerce and 05 Economic Development and the Department of Community and Regional Affairs 06 to other existing agencies; eliminating the Department of Commerce and Economic 07 Development and the Department of Community and Regional Affairs; relating to 08 the Department of Commerce and Rural Development and the commissioner of 09 commerce and rural development; adjusting the membership of certain multi- 10 member bodies to reflect the transfer of duties among departments and the 11 elimination of departments; creating the office of international trade and relating 12 to its duties; and providing for an effective date." 13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 14 * Section 1. AS 08.40.190(b) is amended to read: 01  (b) AS 08.40.005 - 08.40.200 do not apply to a person engaged in 02  (1) the manufacture, maintenance, or repair of electrical apparatus or 03 equipment; 04  (2) electrical work, the cost of which does not exceed $5,000, involving 05 residences or small commercial establishments in communities that 06  (A) have a population of under 500 according to the latest 07 available federal or state census or other census approved by the Department 08 of  Commerce and Rural Development  [COMMUNITY AND REGIONAL 09 AFFAIRS]; or 10  (B) are over 50 miles by air or water transportation from the 11 business place of an electrical administrator licensed under AS 08.40.010 - 12 08.40.200; 13  (3) electrical installation on residential property that is owned by the 14 installer or a member of the installer's immediate family and not intended for sale at 15 the time of making the installation; 16  (4) the operation, maintenance, or repair of a television or radio 17 broadcasting system and the installation of a radio broadcasting system under 500 18 watts input power except for A.C. power supply and wiring; 19  (5) the installation, maintenance, and repair of elevators so long as the 20 work is performed by an agent or employee of the elevator industry and is confined 21 to the elevator control system, which system does not include the power supply, 22 wiring, and motor connection; 23  (6) the operation, maintenance, and repair of telephone, telegraph, and 24 intercommunication facilities; 25  (7) the installation, maintenance, and repair of fire alarm, intrusion 26 alarm, or other low voltage signaling systems of 48 volts to ground or less; 27  (8) the maintenance or repair of diesel electric engines installed on 28 heavy construction equipment, either in a shop or on a job site; 29  (9) the installation in a commercial water well of the submersible pump 30 motor and the wiring to the well pump system controls if the controls are outside a 31 building or a structure; 01  (10) the installation in a noncommercial water well of the submersible 02 pump motor and the wiring to the well pump system controls; 03  (11) electrical maintenance or repair work if the work is performed by 04 the person as an employee of an owner or tenant of commercial property as part of the 05 employee's work duties with respect to the property but is not offered or performed 06 as a service to the public. 07 * Sec. 2. AS 08.40.390(b) is amended to read: 08  (b) AS 08.40.210 - 08.40.490 do not apply to a person engaged in 09  (1) the manufacture or repair of mechanical apparatus or equipment; 10  (2) mechanical work, the cost of which does not exceed $50,000, 11 involving residences or small commercial establishments in communities that 12  (A) have a population of under 5,000 according to the latest 13 available federal or state census or other census approved by the Department 14 of  Commerce and Rural Development  [COMMUNITY AND REGIONAL 15 AFFAIRS]; or 16  (B) are over 50 miles by air or water transportation from the 17 business place of a mechanical administrator licensed under AS 08.40.210 - 18 08.40.490; 19  (3) mechanical installation on a single-family residence or a two-family 20 residence that is not intended for sale at the time of making the installation; 21  (4) installation of water lines or sanitary, storm, or drain sewer lines 22 more than five feet from a building; 23  (5) mechanical maintenance or repair work if the work is performed by 24 the person as an employee of an owner or tenant of commercial property as part of the 25 employee's work duties with respect to the property but is not offered or performed 26 as a service to the public; 27  (6) design, installation, maintenance, or repair of fire extinguishing 28 systems. 29 * Sec. 3. AS 09.25.110(e) is amended to read: 30  (e) Notwithstanding other provisions of this section to the contrary, the Bureau 31 of Vital Statistics  and  [,] the library archives in the Department of Education [, AND 01 THE DIVISION OF BANKING, SECURITIES, AND CORPORATIONS IN THE 02 DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT] may 03 continue to charge the same fees that they  were  [ARE] charging on September 25, 04 1990 ,  for performing record searches, and may increase the fees as necessary to 05 recover agency expenses on the same basis that  was  [IS] used by the agency 06 immediately before September 25, 1990.  Notwithstanding other provisions of this 07 section to the contrary, the division of banking, securities, and corporations in the 08 Department of Commerce and Rural Development may continue to charge the 09 same fees that the former Department of Commerce and Economic Development 10 was charging on the effective date of this bill section for performing record 11 searches and may increase the fees as necessary to recover agency expenses on the 12 same basis that was used by the former Department of Commerce and Economic 13 Development immediately before the effective date of this bill section.  14 * Sec. 4. AS 09.65.170(c)(2) is amended to read: 15  (2) "regional development organization" has the meaning given in 16  AS 44.33.895  [AS 44.47.900]. 17  * Sec. 5. AS 14.08.031(a) is amended to read: 18  (a) The Department of  Commerce and Rural Development  [COMMUNITY 19 AND REGIONAL AFFAIRS] in consultation with the Department of Education and 20 local communities shall divide the unorganized borough into educational service areas 21 using the boundaries or sub-boundaries of the regional corporations established under 22 the Alaska Native Claims Settlement Act, unless by referendum a community votes to 23 merge with another community contiguous to it but within the boundaries or sub- 24 boundaries of another regional corporation. 25 * Sec. 6. AS 14.08.051(a) is amended to read: 26  (a) The commissioner in consultation with the Department of  Commerce and 27 Rural Development [COMMUNITY AND REGIONAL AFFAIRS] and the local 28 communities may divide a regional educational attendance area into sections only for 29 the purpose of nominating and electing regional school board members. If the voters 30 in a regional educational attendance area favor election of regional school board 31 members by sections under (b) of this section, the commissioner in consultation with 01 the Department of  Commerce and Rural Development [COMMUNITY AND 02 REGIONAL AFFAIRS] and the local communities shall divide the regional 03 educational attendance area into sections for the purpose of nominating and electing 04 regional school board members. If a regional educational attendance area is divided 05 into sections ,  each school board member shall represent, as nearly as practicable, an 06 equal number of persons. The basis for the division of a regional educational 07 attendance area into sections shall be the total population of the area as reported in the 08 most recent decennial federal census. If the census is five years old or older, then 09 other reliable population data, including but not limited to population estimates based 10 on public school enrollments, public utility connections, registered voters, or certified 11 employment payrolls, shall be used as the basis for the division of the area into 12 sections. Each section within a regional educational attendance area shall consist of 13 compact, contiguous territory and, as far as practicable, each section shall contain an 14 integrated socioeconomic, linguistically and culturally homogeneous area. In the 15 division of the regional school and attendance area into sections, consideration shall 16 be given to the transportation and communication network to facilitate the 17 administration of education and communication between communities that comprise 18 the area. Whenever possible, municipalities, other governmental or regional corporate 19 entities, drainage basins, and other identifiable geographic features shall be used in 20 describing the boundaries of the sections. 21 * Sec. 7. AS 14.17.025(a) is amended to read: 22  (a) Local contributions to a city or borough school district must include at least 23 the lesser of 24  (1) the equivalent of a four mill tax levy on the full and true value of 25 the taxable real and personal property in the district as of January 1 of the second 26 preceding fiscal year, as determined by the Department of  Commerce and Rural 27 Development [COMMUNITY AND REGIONAL AFFAIRS] under AS 14.17.140 and 28 AS 29.45.110; or 29  (2) 35 percent of the district's basic need for the preceding fiscal year, 30 as determined under AS 14.17.021(c). 31 * Sec. 8. AS 14.17.025(b) is amended to read: 01  (b) In addition to the local contributions required under (a) of this section, 02 local contributions to a city or borough school district in a fiscal year may include no 03 more than the greater of 04  (1) the equivalent of a two mill tax levy on the full and true value of 05 the taxable real and personal property in the district as of January 1 of the second 06 preceding fiscal year, as determined by the Department of  Commerce and Rural 07 Development [COMMUNITY AND REGIONAL AFFAIRS] under AS 14.17.140 and 08 AS 29.45.110; or 09  (2) 23 percent of the district's basic need for the fiscal year under 10 AS 14.17.021(c), as adjusted under AS 14.17.225(b). 11 * Sec. 9. AS 14.17.025(f) is amended to read: 12  (f) For the first three fiscal years in which a newly formed city or borough 13 school district operates schools, local contributions may be less than the amount that 14 would otherwise be required under (a) of this section, except that 15  (1) local contributions in the second fiscal year of operations must be 16 at least the greater of 17  (A) the local contributions, excluding federal impact aid, for the 18 previous fiscal year; or 19  (B) the sum of 10 percent of the district's eligible federal 20 impact aid for that year and the equivalent of a two mill tax levy on the full 21 and true value of the taxable real and personal property in the newly formed 22 city or borough school district as of January 1 of the second preceding fiscal 23 year, as determined by the Department of  Commerce and Rural Development 24 [COMMUNITY AND REGIONAL AFFAIRS] under AS 14.17.140 and 25 AS 29.45.110; and 26  (2) in the third year of operation, local contributions must be at least 27 the greater of 28  (A) the local contributions, excluding federal impact aid, for the 29 previous fiscal year; or 30  (B) the sum of 10 percent of the district's eligible federal 31 impact aid for that year and the equivalent of a three mill tax levy on the full 01 and true value of the taxable real and personal property in the district as of 02 January 1 of the second preceding fiscal year, as determined by the Department 03 of  Commerce and Rural Development [COMMUNITY AND REGIONAL 04 AFFAIRS] under AS 14.17.140 and AS 29.45.110. 05 * Sec. 10. AS 14.17.140(a) is amended to read: 06  (a) To determine the amount of local effort under AS 14.17.025 and to aid the 07 department and the legislature in planning, the Department of  Commerce and Rural 08 Development [COMMUNITY AND REGIONAL AFFAIRS], in consultation with the 09 assessor for each district, shall determine the full value of the taxable real and personal 10 property in each city or borough district. If there is no local assessor or current local 11 assessment for a district, then the Department of  Commerce and Rural Development 12 [COMMUNITY AND REGIONAL AFFAIRS] shall make the determination of full 13 value from information available. In making the determination, the Department of 14  Commerce and Rural Development [COMMUNITY AND REGIONAL AFFAIRS] 15 shall be guided by AS 29.45.110. The determination of full value shall be made by 16 October 1 and sent by certified mail, return receipt requested, on or before that date 17 to the president of the school board in each district. Duplicate copies shall be sent to 18 the commissioner. The governing body of a borough or city that is a school district 19 may obtain judicial review of the determination. The superior court may modify the 20 determination of the Department of  Commerce and Rural Development 21 [COMMUNITY AND REGIONAL AFFAIRS] only upon a finding of abuse of 22 discretion or upon a finding that there is no substantial evidence to support the 23 determination. 24  * Sec. 11. AS 15.07.055(a) is amended to read: 25  (a) The following agencies are designated voter registration agencies: 26  (1) the administrative component of the Department of Administration 27 that administers motor vehicle and driver's license laws; 28  (2) divisions of the Department of Health and Social Services that 29 provide public assistance through the food stamp program, Medicaid program, Special 30 Supplemental Food Program for Women, Infants, and Children (WIC), and Alaska 31 temporary assistance program; 01  (3) the division of the Department of  Commerce and Rural 02 Development [COMMUNITY AND REGIONAL AFFAIRS] that is responsible for 03 municipal and regional assistance programs; and 04  (4) all recruitment offices of the armed forces of the United States 05 located in Alaska. 06 * Sec. 12. AS 15.13.010(a) is amended to read: 07  (a) This chapter applies 08  (1) in every election for governor, lieutenant governor, a member of the 09 state legislature, a delegate to a constitutional convention, or judge seeking electoral 10 confirmation; 11  (2) to every candidate for election to a municipal office in a 12 municipality with a population of more than 1,000 inhabitants according to the latest 13 United States census figures or estimates of population certified as correct for 14 administrative purposes by the Department of  Commerce and Rural Development 15 [COMMUNITY AND REGIONAL AFFAIRS] unless the municipality has exempted 16 itself from the provisions of this chapter; a municipality may exempt its elected 17 municipal officers from the requirements of this chapter if a majority of the voters 18 voting on the question at a regular election, as defined by AS 29.71.800(20), or a 19 special municipality-wide election called for that purpose, votes to exempt its elected 20 municipal officers from the requirements of this chapter; the question of exemption 21 from the requirements of this chapter may be submitted by the governing body by 22 ordinance or by initiative election. 23 * Sec. 13. AS 18.26.030(a) is amended to read: 24  (a) The authority shall be managed and controlled by a seven-person board of 25 directors, who serve at the pleasure of the governor, consisting of 26  (1) the commissioner of revenue, who shall also chair the board; 27  (2) the commissioner of health and social services; 28  (3) the commissioner of  commerce and rural development 29 [COMMUNITY AND REGIONAL AFFAIRS]; 30  (4) four public members, appointed by the governor. 31 * Sec. 14. AS 18.56.030(a) is amended to read: 01  (a) The corporation shall be governed by a board of directors consisting of 02  (1) the commissioner of revenue; 03  (2) the commissioner of  commerce and rural development 04 [COMMUNITY AND REGIONAL AFFAIRS]; 05  (3) the commissioner of health and social services; and 06  (4) four public members appointed by the governor, as follows: 07  (A) one member with expertise or experience in finances or real 08 estate; 09  (B) one member who is a rural resident of the state or who has 10 expertise or experience with a regional housing authority; 11  (C) one member who has expertise or experience in residential 12 energy efficient home-building or weatherization; and 13  (D) one person who has expertise or experience in the provision 14 of senior or low-income housing. 15 * Sec. 15. AS 18.56.097 is amended to read: 16  Sec. 18.56.097. Collateral for loans. Under procedures established by 17 regulations of the corporation adopted in accordance with AS 18.56.088 a person may 18 pledge as security for the repayment of a loan made, purchased, or insured by the 19 corporation under this chapter a preference right the person holds to receive title to 20 land the person occupies as a primary place of residence, primary place of business, 21 subsistence campsite, or as headquarters for reindeer husbandry. The preference right 22 must be conveyed to the person by the Native corporation to which the land was 23 granted under section 14 of the Alaska Native Claims Settlement Act (85 Stat. 688, 43 24 U.S.C. Sec. 1601 - 1626, as amended by P.L. 94-204) before it may be pledged as 25 security under this section. The Department of  Commerce and Rural Development 26 [COMMUNITY AND REGIONAL AFFAIRS] shall prescribe procedures and standard 27 forms for establishing and appraising the value of a preference right held by a person 28 to secure the repayment of a loan made, purchased, or insured by the corporation under 29 this chapter. 30 * Sec. 16. AS 18.70.081 is amended to read: 31  Sec. 18.70.081. Approval of fire protection systems. Before October 30 of 01 each year the Department of Public Safety shall prepare and make available a list of 02 approved fire protection systems to [THE DEPARTMENT OF COMMUNITY AND 03 REGIONAL AFFAIRS,] the Department of Commerce and  Rural [ECONOMIC] 04 Development [,] and the public. 05 * Sec. 17. AS 19.30.131(a) is amended to read: 06  (a) During each fiscal year the commissioner shall allocate sums appropriated 07 or otherwise designated for expenditure upon local service roads for that fiscal year 08 among the five allocation districts in the following manner: one-half in the ratio that 09 the area of each allocation district bears to the total area of the state and one-half in 10 the ratio that the population of each allocation district bears to the total population of 11 the state as shown by the latest available federal or state census or other census 12 approved by the Department of  Commerce and Rural Development [COMMUNITY 13 AND REGIONAL AFFAIRS]. 14 * Sec. 18. AS 19.30.131(b) is amended to read: 15  (b) The commissioner shall also further allocate the sums in each allocation 16 district to the boroughs and unified municipalities within each allocation district in the 17 following manner: one-half in the ratio that the area of each organized borough or 18 unified municipality (excluding salt water areas) within that district bears to the total 19 area of the allocation district and one-half in the ratio that the population of each 20 organized borough area or each unified municipality within that district bears to the 21 total population of the allocation district as shown by the latest available federal or 22 state census or other census approved by the Department of  Commerce and Rural 23 Development [COMMUNITY AND REGIONAL AFFAIRS]. 24 * Sec. 19. AS 19.30.131(c) is amended to read: 25  (c) The commissioner shall also further allocate portions of the sum allocated 26 to any organized borough and to any home rule city within the organized borough in 27 the following manner: 28  (1) one-half in the ratio that the area of each home rule city bears to 29 the total area of the organized borough excluding salt water areas; and 30  (2) one-half in the ratio that the population of each home rule city bears 31 to the total population of the organized borough as shown by the latest available 01 federal or state census or other census approved by the Department of  Commerce and 02 Rural Development [COMMUNITY AND REGIONAL AFFAIRS]. 03 * Sec. 20. AS 23.05 is amended by adding a new section to read: 04  Sec. 23.05.065. Fees for publications, research data, and other services. 05 The commissioner may establish by regulation and the department may charge 06 reasonable fees for department publications, research data, and other centralized 07 administrative services to cover the cost of reproduction, printing, mailing, distribution, 08 and other centralized administrative services. 09 * Sec. 21. AS 23.05 is amended by adding new sections to read: 10 Article 6. Business Incentive Training Program. 11  Sec. 23.05.400. Business incentive training program established. (a) There 12 is established in the department the business incentive training program. The incentive 13 program shall be administered as a supplement to the Job Training Partnership Act 14 (P.L. No. 97-300). 15  (b) The purpose of the incentive program is to encourage private industry to 16 provide new job opportunities by offering assistance in training the new work force 17 and in retraining existing employees to implement new technologies. 18  Sec. 23.05.410. Administration. (a) The Alaska Human Resources 19 Investment Council established in AS 44.19.620 shall oversee the incentive program. 20 The service delivery areas established under 29 U.S.C. 1511 and subject to 21 redesignation under 29 U.S.C. 1515 shall be used in the administration of the incentive 22 program. The private industry councils appointed under 29 U.S.C. 1512 and subject 23 to reconstitution under 29 U.S.C. 1515 shall serve as the private industry councils for 24 the incentive program. 25  (b) The council shall divide appropriations for the incentive program equally 26 among the private industry councils. If a private industry council lacks sufficient 27 money to fund a proposal, the private industry council may apply to the council for 28 additional funding. The council may approve reallocation of money from one service 29 delivery area to another to fund a particular proposal if it finds that the reallocation 30 will best serve the purposes of the program. 31  (c) The council shall adopt regulations under AS 44.62 (Administrative 01 Procedure Act) to implement AS 23.05.400 - 23.05.510. 02  Sec. 23.05.420. Business incentive training plan. (a) A private industry 03 council shall adopt a business incentive training plan for the service delivery area. The 04 plan must extend for two years to coincide with the term for the Job Training 05 Partnership Act (P.L. 97-300) and must contain 06  (1) identification of the entity or entities that will administer the 07 incentive program and be the grant recipient for grants from the state; 08  (2) a description of the services to be provided, including the estimated 09 duration of service and the estimated training cost per participant; 10  (3) procedures for identifying and selecting participants; 11  (4) performance goals established in accordance with standards under 12 AS 23.05.480; 13  (5) procedures for awarding grants to businesses; and 14  (6) the budget for two program years and any proposed expenditures 15 for the succeeding two program years in as much detail as required by the grant 16 administrator designated under AS 23.05.440. 17  (b) If changes in labor market conditions, funding, or other factors require 18 substantial deviation from an approved business incentive training plan, the private 19 industry council and the appropriate elected municipal official or officials shall submit 20 a modification of the plan and the budget for review under AS 23.05.430. 21  Sec. 23.05.430. Review and approval of business incentive training plan. 22 The business incentive training plan shall be published and made available for review 23 and comment as an attachment to the job training plan as set out in 29 U.S.C. 1515. 24 The business incentive training plan is subject to review and approval by the governor. 25  Sec. 23.05.440. Business incentive training grants. (a) Each private industry 26 council shall designate an administrative entity to be the grant recipient and 27 administrator for the region. An employer may apply to the grant administrator for a 28 business incentive grant if the employer is a private for-profit or nonprofit corporation, 29 partnership, or sole proprietor business. The grant administrator shall review 30 applications and award grants. 31  (b) Each grant administrator is responsible for the allocation of funds and the 01 eligibility of those enrolled in its programs. The grant administrator is responsible for 02 taking action against its subcontractors, subgrantees, and other recipients to eliminate 03 abuses in the programs they are carrying out, and to prevent misuse of funds. If the 04 arrangement is included in an approved job training plan, a grant administrator may 05 delegate the responsibility for determining eligibility under reasonable safeguards, 06 including provisions for reimbursement of costs incurred because of erroneous 07 determinations made with insufficient care. 08  (c) A business incentive training grant shall be used to recruit and train eligible 09 employees for newly created permanent or permanent seasonal positions or to enable 10 existing employees to acquire the skills necessary to qualify the employee to 11 implement new technologies. A business incentive training grant may be used for 12 occupations for which there is a demand in the area served or in another area to which 13 the participant is willing to relocate and for emerging technologies in the state. In 14 selecting recruiting and training programs, the private industry councils and the grant 15 administrators may consider whether the occupation in which recruiting or training is 16 sought is in a sector of the economy that has a high potential for sustained demand or 17 growth. 18  (d) Only individuals eligible under the business incentive training plan and 19 residing in the service delivery area may be participants in employment and training 20 activities funded under the business incentive training program. To be eligible for 21 training or education services under AS 23.05.400 - 23.05.510, immediately before 22 beginning training or education under the program a person shall 23  (1) have been unemployed and 24  (A) receiving unemployment insurance benefits; or 25  (B) have exhausted the right to unemployment insurance 26 benefits within the past three years; 27  (2) be liable to be displaced from work within the next six months 28 because of 29  (A) reductions in overall employment within the business; 30  (B) elimination of the person's current job; or 31  (C) a change in the conditions of the employee's job requiring 01 that, to remain employed, the employee must have substantially different skills 02 that the employee does not now possess; or 03  (3) have worked in a position covered by AS 23.20 at any time during 04 the last three years and be ineligible for unemployment insurance benefits because the 05 person 06  (A) was working in a seasonal, temporary, part-time, or other 07 marginal employment; 08  (B) has insufficient qualifying wages because of limited job 09 opportunities; or 10  (C) is employed, but, because the person is underemployed, the 11 person needs employment assistance and training to obtain full employment. 12  (e) Payments to employers for on-the-job training of participants who 13 experience multiple barriers to employment or are eligible under the Job Training 14 Partnership Act (P.L. 97-300) may not average more than 80 percent of the wages paid 15 by the employer to the participant. Payments to employers for on-the-job training of 16 other participants may not average more than 50 percent of the wages paid by the 17 employer to participants. The payments shall be considered to be in compensation for 18 the extraordinary costs associated with training employees for new positions and the 19 lower productivity of the participants. 20  (f) A grant made under the business incentive training program may not be 21 used to duplicate facilities or services available in the area from federal, state, or local 22 sources unless the business incentive training plan establishes that services or facilities 23 under the program would be more effective or more likely to achieve performance 24 goals. 25  (g) A fee may not be charged for placing an individual in or referring an 26 individual to a training program under AS 23.05.400 - 23.05.510. 27  (h) A business incentive training grant may not be awarded to a program that 28 involves political activities. 29  (i) An employer at whose request a participant is offered training shall fulfill 30 the obligation to offer a successful participant in the business incentive training 31 program a position or promotion, as applicable. A participant is considered successful 01 if the participant satisfactorily completes the training program in which the participant 02 was enrolled. 03  Sec. 23.05.450. Compensation for participants. (a) A trainee may not 04 receive a payment for training activities in which the trainee fails to participate. 05  (b) An individual in on-the-job training shall be compensated by the employer 06 at the same rates, including periodic increases, as similarly situated employees or 07 trainees and in accordance with applicable law. However, an individual may not be 08 paid less than the state minimum wage under AS 23.10.065 whether or not the 09 individual is exempt under AS 23.10.055 or 23.10.070. 10  (c) An individual employed in activities authorized under the business 11 incentive training program other than on-the-job training shall be paid wages that are 12 not less than the highest of 13  (1) the state minimum wage under AS 23.10.065; 14  (2) the prevailing rate of pay for individuals employed in similar 15 occupations by the same employer; or 16  (3) the prevailing rate of wages under AS 36.05 or 40 U.S.C. 276a - 17 276a-5, if applicable. 18  (d) Allowances, earnings, and payments to individuals participating in 19 programs under the business incentive training program may not be considered as 20 income in determining eligibility for and the amount of income transfer and in-kind 21 aid furnished under a state program based on need, other than programs under the 22 Social Security Act. 23  (e) Conditions of employment and training must be appropriate and reasonable 24 in light of factors including the type of work, geographical region, and proficiency of 25 the participant. 26  (f) An individual employed in a subsidized job under the business incentive 27 training program shall be provided benefits and working conditions at the same level 28 and to the same extent as other employees working a similar length of time and doing 29 the same type of work. 30  (g) Money from a grant under the business incentive training program may not 31 be used for contributions on behalf of a participant to retirement systems or plans. 01  Sec. 23.05.460. Reporting and recordkeeping. (a) A grant administrator 02 shall maintain records of each participant's enrollment in a business incentive training 03 program in sufficient detail to demonstrate compliance with AS 23.05.400 - 23.05.510. 04  (b) The council shall adopt regulations concerning retention of records. 05  (c) The council shall, no later than February 1 of each year, prepare a report 06 concerning the incentive program and notify the legislature that the report is available. 07  Sec. 23.05.470. Allowable costs. (a) To be allowable, a cost must be 08 necessary and reasonable for proper and efficient administration of the program. The 09 following costs are not allowable: 10  (1) costs resulting from violations of or failure to comply with federal, 11 state, or local laws and regulations; 12  (2) entertainment costs; and 13  (3) insurance policies offering protection against debts established by 14 the federal government. 15  (b) Personal liability insurance for members of the private industry council is 16 an allowable cost. 17  Sec. 23.05.480. Performance standards. (a) The basic measure of 18 performance for training programs under AS 23.05.400 - 23.05.510 is the increase in 19 jobs in the area and in employment and earnings for participants resulting from 20 participation in the program. In order to determine whether these standards are 21 achieved, the governor shall adopt standards based on appropriate factors. 22  (b) The governor shall provide technical assistance to programs that do not 23 meet performance criteria. If a program fails to meet performance standards for two 24 consecutive years, the governor shall withdraw unencumbered funds from the program. 25  (c) An interested party who is harmed by a change made under this section is 26 entitled to a hearing under AS 44.62 (Administrative Procedure Act). 27  Sec. 23.05.490. Limitation on certain costs. No more than 15 percent of the 28 money available to a service delivery area for a fiscal year may be expended for the 29 cost of administration. For purposes of this section, costs of program support, 30 including counseling, that are directly related to the provision of education or training 31 to participants may not be counted as part of the cost of administration. 01  Sec. 23.05.500. Selection of service providers. (a) The primary 02 consideration in selecting agencies or organizations to deliver services within a service 03 delivery area is the effectiveness of the agency or organization in delivering 04 comparable or related services based on demonstrated performance, in terms of the 05 likelihood of meeting performance goals, cost, quality of training, and characteristics 06 of participants. In complying with this subsection, proper consideration shall be given 07 to community based organizations as service providers. 08  (b) Appropriate education agencies in the service delivery area shall be given 09 the opportunity to provide educational services, unless the grant administrator 10 determines that alternative agencies or organizations would be more effective or would 11 have greater potential to enhance the participants' continued occupational and career 12 growth. 13  (c) The grant administrator may not fund an occupational skills training 14 program unless the level of skills provided in the program is in accordance with 15 guidelines established by the private industry council. 16  Sec. 23.05.510. Definitions. In 23.05.400 - 23.05.510, 17  (1) "council" means the Alaska Human Resources Investment Council 18 established in AS 44.19.620; 19  (2) "incentive program" means the business incentive training program 20 established under AS 23.05.400; 21  (3) "participant" means an individual receiving education or training, 22 including on-the-job training, under an incentive program grant. 23 * Sec. 22. AS 23.15.645(b) is amended to read: 24  (b) When a grant is awarded to the council, the department shall annually 25 provide to the council a priority list of targeted projects or services, based on 26 unemployment statistics, unemployment insurance claims, occupational and industrial 27 projections, availability of other training and employment programs, and other relevant 28 data. The department shall also provide annually to the council a priority list of 29 criteria for eligibility to maximize services to those people most in need of training 30 under AS 23.15.620 - 23.15.660. In developing the priority list for targeted projects 31 and services, the department shall solicit comments from the [DEPARTMENT OF 01 COMMUNITY AND REGIONAL AFFAIRS,] Department of Education, Department 02 of Commerce and  Rural [ECONOMIC] Development, University of Alaska, organized 03 labor, the council, and the administrative entities of the substate service delivery areas 04 established for the council. The department shall give preference to projects and 05 services that train individuals in industries identified in the resident hire report required 06 under AS 36.10.130 as employing a disproportionate percentage of nonresident 07 individuals. 08 * Sec. 23. AS 24.08.035(e) is amended to read: 09  (e) If a bill or resolution, except an appropriation bill, significantly increases 10 costs to a municipality, there shall be attached to the measure a municipal fiscal note 11 containing an estimate for the current fiscal year and five succeeding fiscal years of 12 the cost to municipalities that would result from enactment of the measure. The last 13 committee to which the bill is referred on the day it is introduced in the house of 14 origin shall request the municipal fiscal note. It shall be prepared by the Department 15 of  Commerce and Rural Development [COMMUNITY AND REGIONAL 16 AFFAIRS]. It shall be delivered in accordance with (d) of this section within five 17 days of the request, or within two days if the request is made after the 90th day of a 18 regular session or during a special session. The municipal fiscal note must contain 19 information that substantially complies with (c)(1), (2), and (6) - (9) of this section to 20 the extent the information is available to the department. 21 * Sec. 24. AS 26.23.071(b) is amended to read: 22  (b) The commission consists of the commissioners of  commerce and rural 23 development [COMMUNITY AND REGIONAL AFFAIRS], environmental 24 conservation, fish and game, health and social services, labor, natural resources, public 25 safety, and transportation and public facilities, or the designees of the commissioners, 26 the adjutant general of the Department of Military and Veterans' Affairs or a designee, 27 and seven members of the public appointed by the governor, two of whom must be 28 members of a local emergency planning committee for an emergency planning district 29 that is predominantly rural in character and two of whom must be members of a local 30 emergency planning committee for an emergency planning district that is 31 predominantly urban in character. Two of the other three members of the public who 01 are appointed to the commission must be members of the governing body of, or the 02 mayor of, a political subdivision that has a local emergency planning committee or a 03 person who, in the opinion of the governor, is otherwise appropriate to represent the 04 political subdivision. The United States Department of Defense - Alaska Command, 05 the Federal Emergency Management Agency, the United States Environmental 06 Protection Agency, and the United States Coast Guard may each appoint a 07 representative to serve on the commission in an ex-officio, nonvoting capacity. To the 08 extent practicable, the commission must include members with expertise in the 09 emergency response field. 10 * Sec. 25. AS 28.01.010(b) is amended to read: 11  (b) A municipality may adopt by reference all or a part of this title and 12 regulations adopted under this title, and may request and shall receive from the 13 Department of  Commerce and Rural Development [COMMUNITY AND 14 REGIONAL AFFAIRS] and, as appropriate, either the Department of Administration 15 or the Department of Public Safety, assistance in the drafting of model ordinances for 16 adoption by reference. Notwithstanding (a) of this section, a municipality may enact 17 necessary ordinances to meet specific local requirements. 18 * Sec. 26. AS 29.06.040(c) is amended to read: 19  (c) In addition to the regulations governing annexation by local action adopted 20 under  AS 44.33.812  [AS 44.47.567], the Local Boundary Commission shall establish 21 procedures for annexation and detachment of territory by municipalities by local 22 action. The procedures established under this subsection must include a provision that 23  (1) a proposed annexation and detachment must be approved by a 24 majority of votes on the question cast by voters residing in the area proposed to be 25 annexed or detached; 26  (2) municipally owned property adjoining the municipality may be 27 annexed by ordinance without voter approval; and 28  (3) an area adjoining the municipality may be annexed by ordinance 29 without an election if all property owners and voters in the area petition the governing 30 body. 31 * Sec. 27. AS 29.60.120(d) is amended to read: 01  (d) Before money may be distributed under this section, the commissioner of 02 health and social services shall certify to the commissioner of  commerce and rural 03 development [COMMUNITY AND REGIONAL AFFAIRS] that any accumulation of 04 assets by nonprofit corporations or other recipients under this section is dedicated 05 irrevocably to a public purpose. 06 * Sec. 28. AS 29.60.370(a) is amended to read: 07  (a) The amount allocated to the per capita account in the safe communities 08 program shall be distributed to each municipality on the basis of population. 09 Population for the purpose of this section shall be as certified by the commissioner of 10  commerce and rural development [COMMUNITY AND REGIONAL AFFAIRS]. 11 In determining the population of a borough, the population of all cities in the borough 12 shall be deducted from the total population of the borough. 13 * Sec. 29. AS 29.60.599(9) is amended to read: 14  (9) "village" means a place within the unorganized borough or within 15 a borough if the power, function, or service for which a grant application is submitted 16 under AS 29.60.500 - 29.60.599 is not exercised or provided by the borough on an 17 areawide or nonareawide basis at the time the grant application is submitted, that 18  (A) has irrevocably waived, in a form approved by the 19 Department of Law, any claim of sovereign immunity that might arise in 20 connection with the use of grant money under this chapter; and 21  (B) has 22  (i) a council organized under 25 U.S.C. 476 (sec. 16 of 23 the Indian Reorganization Act); 24  (ii) a traditional village council recognized by the United 25 States as eligible for federal aid to Indians; or 26  (iii) a council recognized by the commissioner under 27 regulations adopted by the department to determine and give official 28 recognition of village entities under  AS 44.33.755(b)  [AS 44.47.150(b)]. 29 * Sec. 30. AS 29.60.620(b) is amended to read: 30  (b) For purposes of (a) of this section, population shall be determined by the 31 Department of  Commerce and Rural Development [COMMUNITY AND 01 REGIONAL AFFAIRS] based on the latest figures of the United States Bureau of the 02 Census or other reliable population data. If a city within a borough has an approved 03 grant for a service to be provided on an areawide basis, the allocation under (a) of this 04 section shall be based on the population of the borough. 05 * Sec. 31. AS 29.60.650(2) is amended to read: 06  (2) "municipality" means a (A) city whose population is over 20,000; 07 (B) unified municipality whose population is over 100,000; or (C) second class 08 borough whose population is over 65,000; population for purposes of this paragraph 09 shall be determined by the Department of  Commerce and Rural Development 10 [COMMUNITY AND REGIONAL AFFAIRS]. 11 * Sec. 32. AS 29.65.050(c) is amended to read: 12  (c) The director shall approve or disapprove each selection for patent within 13 nine months of its selection by a municipality. Before a decision is issued ,  the 14 Department of  Commerce and Rural Development [COMMUNITY AND 15 REGIONAL AFFAIRS] shall review the selection and recommend approval or 16 disapproval of it. The director may disapprove a selection only upon a finding that the 17 public interest in retaining state ownership of the land outweighs the municipality's 18 interest in obtaining the land. A patent shall be issued to the municipality for land 19 selected in satisfaction of a general grant land entitlement vested under AS 29.65.010 - 20 29.65.030 within three months after approval by the director of a plat of survey. 21 * Sec. 33. AS 29.65.050(d) is amended to read: 22  (d) Before disapproving a selection, the director shall notify the municipality 23 in writing of the decision and set out reasons for it. The municipality may submit a 24 written response within 30 days after receipt of the notice. Within 30 days after the 25 period for responding has expired, the director shall affirm, modify, or reverse the 26 decision and supply the municipality with written notice of that action. If the selection 27 is disapproved, the municipality may file notice of an appeal with the director. The 28 appeal shall be heard under procedures adopted by regulation of the Department of 29 Natural Resources. Before reaching a decision on an appeal the Department of Natural 30 Resources shall request the Department of  Commerce and Rural Development 31 [COMMUNITY AND REGIONAL AFFAIRS] to review the matter and submit a 01 recommendation. After reviewing the recommendation, a decision on the appeal shall 02 be submitted by the Department of Natural Resources to the municipality in writing 03 within 30 days after the notice of appeal was filed with the director. A municipality 04 may appeal an adverse decision to the superior court under AS 44.62.560 - 44.62.570. 05 * Sec. 34. AS 29.65.060(f) is amended to read: 06  (f) For purposes of determining the per capita entitlement under (a) of this 07 section, the population of a municipality shall be the population determined by the 08 former commissioner  of community and regional affairs  under former AS 43.18.010 09 for the program year beginning July 1, 1978, for a municipality whose entitlement was 10 determined under former AS 29.18.201 or 29.18.202. 11 * Sec. 35. AS 29.65.120 is amended to read: 12  Sec. 29.65.120. Regulations. The commissioner of natural resources may, 13 after consultation with the Department of  Commerce and Rural Development 14 [COMMUNITY AND REGIONAL AFFAIRS], adopt regulations in accordance with 15 AS 44.62 (Administrative Procedure Act) necessary to carry out the purposes of this 16 chapter. 17 * Sec. 36. AS 29.71.800(5) is amended to read: 18  (5) "commissioner" means the commissioner of  commerce and rural 19 development [COMMUNITY AND REGIONAL AFFAIRS]; 20 * Sec. 37. AS 29.71.800(8) is amended to read: 21  (8) "department" means the Department of  Commerce and Rural 22 Development [COMMUNITY AND REGIONAL AFFAIRS];  23 * Sec. 38. AS 30.13.010(a) is amended to read: 24  (a) The residents of each area of the state within the boundaries of a regional 25 housing authority established under AS 18.55.996  that  [WHICH] is located in whole 26 or in part in the unorganized borough of the state may create a public body corporate 27 and politic under the name and style of the "Resource Development Authority" with 28 all or any significant part of the name of the region of the state inserted. The 29 boundaries of the authority created shall be coterminous with the portion of the 30 applicable regional housing authority that lies in the unorganized borough. Creation 31 of an authority is initiated by a petition filed with the Department of  Commerce and 01 Rural Development [COMMUNITY AND REGIONAL AFFAIRS] and a statement 02 submitted to the governor. The petition must include the proposed name of the 03 authority, its boundaries, and a statement of the facilities proposed to be provided by 04 the authority. The petition must be signed by 15 percent of the total number of 05 residents in the portion of the applicable regional housing authority that lies in the 06 unorganized borough who cast votes in the preceding general election. The 07 Department of  Commerce and Rural Development [COMMUNITY AND 08 REGIONAL AFFAIRS] shall review petitions for content and signatures. If the 09 department determines that the petition is adequate, it shall transmit the petition to the 10 director of elections. 11 * Sec. 39. AS 36.30.850(b)(11) is amended to read: 12  (11) agreements with providers of services under  AS 44.29.300  13 [AS 44.47.250]; AS 47.07; AS 47.08; AS 47.10; 47.17; AS 47.24; and AS 47.27, 14 including contractors under AS 47.27.050; 15 * Sec. 40. AS 36.30.850(b)(30) is amended to read: 16  (30) contracts entered into with a regional development organization; 17 in this paragraph, "regional development organization" has the meaning given in 18  AS 44.33.895  [AS 44.47.900]; 19 * Sec. 41. AS 37.05.317 is amended to read: 20  Sec. 37.05.317. Grants to unincorporated communities. (a) When an 21 amount is appropriated or allocated as a grant under this section to an unincorporated 22 community, it shall be disbursed as follows: 23  (1) Within 45 days after the effective date of the appropriation or 24 allocation, the Department of  Commerce and Rural Development  [COMMUNITY 25 AND REGIONAL AFFAIRS] shall notify the governing body of the unincorporated 26 community, if any, that a grant is available. 27  (2) The Department of  Commerce and Rural Development  28 [COMMUNITY AND REGIONAL AFFAIRS] shall determine if there is a qualified 29 incorporated entity in the community area that will agree to receive the grant and 30 administer it, subject to terms generally applicable to private grantees. If there is more 31 than one such entity, the Department of  Commerce and Rural Development  01 [COMMUNITY AND REGIONAL AFFAIRS] shall select the most qualified and the 02 grant shall be awarded to that incorporated entity for the purposes specified in the 03 appropriation act. However, the Department of  Commerce and Rural Development  04 [COMMUNITY AND REGIONAL AFFAIRS] shall give preference to a nonprofit 05 corporation organized by a community for receipt of the grant. 06  (3) If there is no incorporated entity qualified to receive the grant, the 07 Department of  Commerce and Rural Development  [COMMUNITY AND 08 REGIONAL AFFAIRS] shall administer the program as specified in the appropriation 09 act directly or through agents or contractors with whom it may contract in the 10 community area. 11  (b) The Department of Labor shall require the qualified incorporated entity 12 awarded a grant or agents or contractors with whom the Department of  Commerce 13 and Rural Development  [COMMUNITY AND REGIONAL AFFAIRS] contracts 14 under (a) of this section to comply with the requirements of AS 36.10.150 - 36.10.175 15 for employment generated by the grant or contract if the grant or contract is for a 16 public works project. 17 * Sec. 42. AS 37.05.530(c) is amended to read: 18  (c) The Department of  Commerce and Rural Development  [COMMUNITY 19 AND REGIONAL AFFAIRS] shall adopt regulations under which municipalities 20 impacted by National Petroleum Reserve - Alaska oil and gas development under 42 21 U.S.C. 6508 may apply for and be eligible to receive grants to alleviate the impact. 22 The department shall give priority in the allocation of grants to municipalities that are 23 experiencing or will experience the most direct or severe impact from oil and gas 24 development under 42 U.S.C. 6508 within the National Petroleum Reserve - Alaska. 25 The department shall fund all meritorious grant applications out of the money 26 appropriated to it each year. Within 10 days after the convening of each regular 27 session of the legislature, the department shall submit to the legislature a list of all 28 municipalities that have received grants, a list of all municipalities determined by the 29 department to be eligible for further grants, a recommendation of the amount of money 30 to be granted for those additional applications, and written justification of each past 31 and potential grant. 01 * Sec. 43. AS 37.06.010(g) is amended to read: 02  (g) For purposes of this section, in calculating the population of a borough the 03 population of each city in the borough is excluded. The determination of population 04 shall be based upon data used by the Department of  Commerce and Rural 05 Development  [COMMUNITY AND REGIONAL AFFAIRS] under AS 29.60.020. 06 * Sec. 44. AS 37.06.020(i) is amended to read: 07  (i) The limitations of  AS 44.33.745  [AS 44.47.140] do not apply to a grant 08 made under this section. 09 * Sec. 45. AS 37.06.020(k) is amended to read: 10  (k) In this section, unless specified otherwise, "department" means the 11 Department of  Commerce and Rural Development  [COMMUNITY AND 12 REGIONAL AFFAIRS]. 13 * Sec. 46. AS 37.06.030(c) is amended to read: 14  (c) For purposes of (a) of this section, in calculating the population of a 15 borough the population of each city in the borough is excluded. The determination of 16 population shall be based upon data used by the Department of  Commerce and Rural 17 Development  [COMMUNITY AND REGIONAL AFFAIRS] under AS 29.60.020. 18 * Sec. 47. AS 37.06.080 is amended to read: 19  Sec. 37.06.080. Adoption of regulations. The Department of Administration 20 for grants under AS 37.06.010 and the Department of  Commerce and Rural 21 Development  [COMMUNITY AND REGIONAL AFFAIRS] for grants under 22 AS 37.06.020 23  (1) may adopt regulations that impose additional requirements or 24 procedures to implement, interpret, make specific, or otherwise carry out the applicable 25 provisions of this chapter for grants administered by the department; 26  (2) shall adopt regulations providing for periodic audits of the use of 27 money for grants administered by the department under this chapter, including audit 28 of the department's determination of the value of, and adequacy of the verification of 29 the actual use of, locally funded or contributed labor on projects funded by a grant 30 under this chapter. 31 * Sec. 48. AS 39.50.200(b)(18) is amended to read: 01  (18) Local Boundary Commission ( AS 44.33.810  [AS 44.47.565]); 02 * Sec. 49. AS 41.15.180(a) is amended to read: 03  (a) When the commissioner of  commerce and rural development  04 [COMMUNITY AND REGIONAL AFFAIRS] receives national forest income under 05 16 U.S.C. 500, the commissioner shall immediately pay to each organized borough in 06 which national forest land is located a share of the income from that forest; an 07 organized borough's share of income from a national forest shall be proportional to the 08 area of the national forest located within its boundaries. 09 * Sec. 50. AS 41.15.180(b) is amended to read: 10  (b) There is created as a separate account in the general fund the unorganized 11 borough national forest receipts fund. The fund consists of national forest income 12 received by the Department of  Commerce and Rural Development  [COMMUNITY 13 AND REGIONAL AFFAIRS] under 16 U.S.C. 500 for the percentage of a national 14 forest located within the unorganized borough. Seventy-five percent of the fund shall 15 be allocated for public schools and 25 percent for public roads. 16 * Sec. 51. AS 41.15.180(f) is amended to read: 17  (f) For the purpose of making distributions from the fund, the commissioner 18 of  commerce and rural development  [COMMUNITY AND REGIONAL AFFAIRS] 19 shall consult with the commissioner of education, for purposes of determining the 20 number of children in average daily membership in the public schools affected by this 21 section, and the commissioner of transportation and public facilities, to determine the 22 total number of road miles in the unorganized borough affected by this section. 23 * Sec. 52. AS 41.15.180(g) is amended to read: 24  (g) An organized borough, home rule city, first class city, second class city, 25 regional educational attendance area, or a municipality organized under federal law that 26 receives a national forest income payment or distribution under 16 U.S.C. 500 or this 27 section shall annually report and account to the commissioner of  commerce and rural 28 development  [COMMUNITY AND REGIONAL AFFAIRS] its use of the payment 29 or distribution for the purposes provided in (a) - (e) of this section. The commissioner 30 of  commerce and rural development  [COMMUNITY AND REGIONAL AFFAIRS] 31 may not distribute national forest income under this section to an entity in the 01 unorganized borough that has previously failed to report and account as required under 02 this subsection. 03 * Sec. 53. AS 42.45.060(a) is amended to read: 04  (a) A loan committee consisting of  six  [SEVEN] members is established. The 05 committee is composed of [THE COMMISSIONER OF COMMUNITY AND 06 REGIONAL AFFAIRS,] the commissioner of commerce and  rural  [ECONOMIC] 07 development, the director of management and budget, or the designees of the 08 commissioners or the director, and four public members. 09 * Sec. 54. AS 42.45.060(c) is amended to read: 10  (c) The commissioner of  commerce and rural development  [COMMUNITY 11 AND REGIONAL AFFAIRS] serves as chair of the committee. The committee may 12 elect other officers as necessary. A majority of the members of the committee 13 constitute a quorum and may exercise the powers of the committee. 14 * Sec. 55. AS 42.45.990(1) is amended to read: 15  (1) "department" means the Department of  Commerce and Rural 16 Development  [COMMUNITY AND REGIONAL AFFAIRS]; 17 * Sec. 56. AS 43.75.137 is amended to read: 18  Sec. 43.75.137. Additional refund. To the extent that appropriations are 19 available for the purpose, and notwithstanding the requirement of AS 37.07.080(e) that 20 approval of the office of management and budget is required, an amount equal to 50 21 percent of the tax revenue that is collected under this chapter from fisheries businesses 22 and is not subject to division with a municipality under AS 43.75.130 shall be 23 transmitted each fiscal year, without the approval of the office of management and 24 budget, by the department to the department of  Commerce and Rural Development  25 [COMMUNITY AND REGIONAL AFFAIRS] for disbursal to eligible municipalities 26 under AS 29.60.450. 27 * Sec. 57. AS 43.77.040(b) is amended to read: 28  (b) A taxpayer who makes a contribution that qualifies for the credit 29 authorized by (a) of this section must apply to obtain the credit. The taxpayer shall 30 apply to the department in the manner provided by the department by regulation, and 31 shall provide to the commissioner all information relating to the contribution that may 01 be required by the department. Upon receipt of a complete application, the 02 department, in consultation with the Department of  Commerce and Rural 03 Development  [COMMUNITY AND REGIONAL AFFAIRS], shall approve or 04 disapprove the application for the credit within 60 days. 05 * Sec. 58. AS 43.77.060(d) is amended to read: 06  (d) To the extent that appropriations are available for the purpose, and 07 notwithstanding the requirement of AS 37.07.080(e) that approval of the office of 08 management and budget is required, an amount equal to 50 percent of the tax revenue 09 that is collected under this chapter and is not subject to division with a municipality 10 under (a) - (c) of this section shall be transmitted each fiscal year, without the approval 11 of the office of management and budget, by the department to the Department of 12  Commerce and Rural Development  [COMMUNITY AND REGIONAL AFFAIRS] 13 for disbursal to eligible municipalities under AS 29.60.450. 14 * Sec. 59. AS 44.19.145(a) is amended to read: 15  (a) The office shall 16  (1) provide technical assistance to the governor and the legislature in 17 identifying long range goals and objectives for the state and its political subdivisions; 18  (2) prepare and maintain a state comprehensive development plan; 19  (3) provide information and assistance to state agencies to aid in 20 governmental coordination and unity in the preparation of agency plans and programs; 21  (4) review planning within state government as may be necessary for 22 receipt of federal, state, or other funds; 23  (5) participate with other countries, provinces, states, or subdivisions 24 of them in international or interstate planning, and assist the state's local governments, 25 governmental conferences, and councils in planning and coordinating their activities; 26  (6) encourage educational and research programs that further state 27 planning and development, and provide administrative and technical services for them; 28  (7) publish [SUCH] statistical information or other documentary 29 material  that  [AS] will further the provisions and intent of AS 44.19.141 - 44.19.152; 30  (8) assist the governor and the Department of  Commerce and Rural 31 Development  [COMMUNITY AND REGIONAL AFFAIRS] in coordinating state 01 agency activities that have an effect on the solution of local and regional development 02 problems; 03  (9) serve as a clearinghouse for information, data, and other materials 04 that may be helpful or necessary to federal, state, or local governmental agencies in 05 discharging their respective responsibilities or in obtaining federal or state financial or 06 technical assistance; 07  (10) review all proposals for the location of capital improvements by 08 any state agency and advise and make recommendations concerning location of these 09 capital improvements; 10  (11) render, on behalf of the state, all federal consistency 11 determinations and certifications authorized by 16 U.S.C. 1456 (Sec. 307, Coastal Zone 12 Management Act of 1972), and each conclusive state consistency determination when 13 a project requires a permit, lease, or authorization from two or more state resource 14 agencies. 15 * Sec. 60. AS 44.19.155(a) is amended to read: 16  (a) There is created in the Office of the Governor the Alaska Coastal Policy 17 Council. The council consists of the following: 18  (1) nine public members appointed by the governor from a list 19 comprised of at least three names from each region, nominated by the municipalities 20 of each region; the nominees shall be the mayor or member of the assembly or council 21 of a municipality; one public member shall be appointed from each of the following 22 general regions: 23  (A) northwest Alaska, including, generally, the area of the North 24 Slope Borough and the Northwest Arctic regional educational attendance area; 25  (B) Bering Straits, including, generally, the area of the Bering 26 Straits regional educational attendance area; 27  (C) southwest Alaska, including, generally, the area within the 28 Lower Yukon, Lower Kuskokwim, Southwest, and Lake  and  [&] Peninsula 29 regional educational attendance areas and the Bristol Bay Borough; 30  (D) Kodiak-Aleutians, including the area of the Kodiak Island 31 Borough and the Aleutian, Adak and Pribilof regional educational attendance 01 areas; 02  (E) Upper Cook Inlet, including the Municipality of Anchorage 03 and the Matanuska-Susitna Borough; 04  (F) Lower Cook Inlet, including, generally, the area within the 05 Kenai Peninsula Borough; 06  (G) Prince William Sound, including, generally, the area east 07 of the Kenai Peninsula Borough to 141 W. longitude; 08  (H) northern Southeast Alaska, including the area southeast of 09 141 W. longitude and north of 57 N. latitude, including the entirety of the City 10 and Borough of Sitka; and 11  (I) southern Southeast Alaska, including that portion of 12 southeastern Alaska not contained within the area described in (H) of this 13 paragraph; 14  (2) each of the following: 15  (A) the director of the office of management and budget; 16  (B) the commissioner of commerce and  rural  [ECONOMIC] 17 development; 18  (C) [THE COMMISSIONER OF COMMUNITY AND 19 REGIONAL AFFAIRS; 20  (D)] the commissioner of environmental conservation; 21   (D)  [(E)] the commissioner of fish and game; 22   (E)  [(F)] the commissioner of natural resources; and 23   (F)  [(G)] the commissioner of transportation and public 24 facilities. 25 * Sec. 61. AS 44.19.155(d) is amended to read: 26  (d) Each member of the council shall select one person to serve as a 27 permanent alternate at meetings of the council. If a member of the council is unable 28 to attend, the member shall advise the alternate who may attend and act in the place 29 of the member. The alternate for a public member appointed under (a)(1) of this 30 section shall, at the time of the alternate's designation and throughout the period of 31 service as a permanent alternate, be the mayor or member of the assembly or council 01 of a municipality within the region from which the permanent member is appointed. 02 The alternate for the director of the office of management and budget, serving under 03 (a)(2)(A) of this section, shall be the director's designee within that office. The 04 alternate for a designated member serving under  (a)(2)(B) - (F)  [(a)(2)(B) - (G)] of this 05 section shall be a deputy commissioner of the department or the director of a division 06 in the department. The names of alternates shall be filed with the council. 07 * Sec. 62. AS 44.19.620(a) is amended to read: 08  (a) The Alaska Human Resource Investment Council is established in the 09 Office of the Governor. The council consists of the following voting members, not to 10 exceed 26: 11  (1) the lieutenant governor or the lieutenant governor's designee; 12  (2) the commissioners of commerce and  rural  [ECONOMIC] 13 development, [COMMUNITY AND REGIONAL AFFAIRS,] education, health and 14 social services, and labor, or each respective commissioner's designee; 15  (3) one representative from the University of Alaska; 16  (4) four additional representatives of education, with one from local 17 public education, one from secondary vocational education, one from a postsecondary 18 vocational education institution, and one from adult basic education; 19  (5) four representatives of business and industry, with at least one 20 representative from the private industry councils appointed under 29 U.S.C. 1512 and 21 subject to reconstitution under 29 U.S.C. 1515; 22  (6) four representatives of organized labor that the governor shall 23 appoint from lists of nominees submitted by recognized state labor organizations; the 24 governor may reject a list submitted under this paragraph and request that another list 25 be submitted; 26  (7) at least one representative from an organization representing 27 employment and training needs of Alaska Natives; 28  (8) at least one representative of a community-based service 29 organization; 30  (9) at least one representative who has personal or professional 31 experience with developmental disabilities; and 01  (10) at least one and up to four additional members of the private 02 sector to ensure a private sector majority and regional and local representation on the 03 council. 04 * Sec. 63. AS 44.19 is amended by adding a new section to read: 05 Article 13. Office of International Trade. 06  Sec. 44.19.630. International trade. (a) The office of international trade is 07 established in the office of the governor. The purpose of the office is to foster the 08 growth of trade between Alaska and foreign countries. 09  (b) The governor shall maintain foreign offices, including an office located in 10 Tokyo, Japan, and Seoul, Republic of Korea. The foreign offices shall serve as outlets 11 for information related to economic development, resources, and trade and as contact 12 points for government and private industry of Alaska and for the Pacific Rim nations 13 of Asia and other foreign countries to promote and maintain trade between the state 14 and those countries. 15  (c) The governor shall staff the foreign offices with persons the governor 16 selects based on their experience, training, and linguistic ability. The governor shall 17 solicit ideas from the legislature regarding desirable staff qualifications and its 18 recommendations of persons to staff the foreign offices. The governor may hire 19 additional personnel as necessary. 20  (d) The governor shall direct all state agencies, and request the federal 21 government and private industry, to provide the office with necessary reports, 22 brochures, and information requested by the office. 23  (e) The governor shall prepare a report annually on the activities and 24 accomplishments of the office under this section and notify the legislature that the 25 report is available. 26  (f) The expenses of operating the office's activities under this section, 27 including its foreign offices, shall be included in appropriations made to the governor. 28  (g) Employees of the office, including personnel in its foreign offices, are in 29 the partially exempt service. 30  (h) In this section, "office" means the office of international trade. 31 * Sec. 64. AS 44.21.200(a) is amended to read: 01  (a) The Alaska Commission on Aging is established in the Department of 02 Administration. The members of the commission include 03  (1) the commissioner of administration or the commissioner's designee; 04  (2) the commissioner of  commerce and rural development  05 [COMMUNITY AND REGIONAL AFFAIRS] or the commissioner's designee; 06  (3) the commissioner of health and social services or the 07 commissioner's designee; 08  (4) the chair of the Pioneers' Homes Advisory Board under 09 AS 44.21.120; and 10  (5) seven persons selected on the basis of their knowledge and 11 demonstrated interest in the concerns of older Alaskans, appointed by the governor in 12 accordance with (b) of this section. 13 * Sec. 65. AS 44.29.020 is amended by adding a new subsection to read: 14  (c) The Department of Health and Social Services shall operate the headstart 15 funding program governed by 42 U.S.C. 9835. 16 * Sec. 66. AS 44.29 is amended by adding new sections to read: 17 Article 4. Day Care Assistance; Child Care Grants. 18  Sec. 44.29.300. Powers and duties. (a) The department shall 19  (1) implement and administer a program to assist in providing day care 20 for the children of low and moderate income families according to the requirements 21 of AS 44.29.300 - 44.29.339; 22  (2) establish standards of eligibility for day care benefits; 23  (3) contract for the care of children of eligible families; 24  (4) establish procedures to periodically review the needs of families 25 receiving day care benefits; 26  (5) provide notification to the local government body of the request for 27 a contract with a day care facility. 28  (b) The department may 29  (1) adopt regulations necessary for the performance of its duties under 30 AS 44.29.300 - 44.29.339; 31  (2) contract with other entities to perform duties of the department 01 under AS 44.29.300 - 44.29.339 within an area specified by the department; within an 02 area, the department shall give higher priority to contracting with municipalities than 03 with other organizations. 04  Sec. 44.29.305. Administrative costs of program contractors. To defray 05 administrative expenses, a contractor under AS 44.29.300(b) may only retain $1,000 06 or 12 percent, whichever is greater, of the day care assistance program funds it 07 receives from the department under the contract. 08  Sec. 44.29.310. Conditions of receipt of benefits. Benefits may be paid for 09 the care of children of a low or moderate income family only if a parent or guardian, 10 because of the day care, is freed to work or to seek work or to attend school. Benefits 11 may not be paid for the care of children of a family where one parent or guardian is 12 not working, actively seeking work, or attending school and is physically and mentally 13 capable of caring for the children. 14  Sec. 44.29.315. Eligibility of families for benefits. The department shall 15 determine the eligibility of families for day care benefits on the basis of the following 16 factors: 17  (1) income of the family including salary, alimony, child support, 18 retirement benefits, social security, and any other source of income; 19  (2) number of children in the family; 20  (3) whether there is one parent or guardian solely responsible for the 21 care of the family. 22  Sec. 44.29.320. Contributions by parent or guardian. The department shall 23 develop a sliding fee scale based on the factors listed in AS 44.29.315 for purposes of 24 determining the amount to be contributed by the parent or guardian for child care. The 25 contribution of the parent or guardian shall be paid to the day care facility. 26  Sec. 44.29.325. Placement; payment by state. (a) Parents or guardians shall 27 select the day care facility for the care of their children. 28  (b) Benefits shall be paid by the department directly to the municipality or 29 organization contracting with the day care facility. 30  Sec. 44.29.330. Child care grant program. (a) A child care grant program 31 is established in the department to provide state assistance in the operation of child 01 care facilities. The department shall provide grants for the operation of child care 02 facilities, including private nonprofit child care facilities. Participation in the program 03 is optional. 04  (b) To qualify for a grant under (a) or (d) of this section, the child care facility 05 must 06  (1) be currently licensed under AS 47.35 and applicable municipal 07 licensing requirements; 08  (2) participate in the day care assistance program under AS 44.29.300 - 09 44.29.339; and 10  (3) provide care under a payment system as provided in (g) of this 11 section. 12  (c) A grant under (a) of this section may not exceed $50 per month for each 13 child the child care facility cares for, or for each full-time equivalent, as determined 14 by the department. The grant shall be adjusted on a geographic basis by the same 15 percentages as instructional unit allotments are adjusted under AS 14.17.051. 16  (d) In addition to the grants provided in (a) of this section, the department 17 may, subject to appropriations for that purpose, provide by grant or contract for the 18 education and training of child care employees or administrators. To receive a grant 19 or contract under this subsection or to participate in a training program under this 20 subsection, the child care facility must meet all the requirements of (b) of this section. 21  (e) An application for a grant under this section shall be made in the form 22 established by the department. 23  (f) A grant under (a) of this section shall be made monthly or quarterly and 24 shall be based on the monthly average daily full-time equivalent enrollment in the 25 child care facility. If the method of payment for the grant is other than monthly, it 26 shall be at the request of the child care facility with the approval of the department. 27 Based on criteria established by the department, the department may make quarterly 28 advance payments. 29  (g) Each child care facility receiving a grant under (a) or (d) of this section 30 shall assure that at least 15 percent or one of its child care spaces receiving subsidy 31 under this section, whichever is greater, will be made available, if requested, to 01 children eligible for day care assistance under AS 44.29.300 - 44.29.339, whose 02 parents or guardians wish to pay for care based on attendance only. 03  (h) The commissioner shall, in consultation with interested child care providers 04 and parents, adopt regulations to carry out the purposes of this section. 05  Sec. 44.29.339. Definitions. In AS 44.29.300 - 44.29.339, 06  (1) "child" means a person below 13 years of age, or a minor who has 07 a developmental disability; 08  (2) "child care facility" means an establishment licensed under 09 AS 47.35 including but not limited to day care centers, family day care homes, and 10 schools for preschool age children, which provides care for children not related by 11 blood, marriage, or legal adoption to the owner, operator, or manager of the facility; 12  (3) "day care" means the care, supervision, and guidance of a child or 13 children unaccompanied by a parent or legal guardian on a regular basis for periods 14 of less than 24 hours a day; 15  (4) "day care facility" means a center or home licensed in accordance 16 with the provisions of AS 47.35 or recognized by the federal government for the care 17 of children; 18  (5) "department" means the department of Community and Economic 19 Development; 20  (6) "developmental disability" means a disability under which a person 21 is incapable of self-care, as verified by a physician or licensed or certified psychologist 22 who has examined the person. 23 Article 5. Child Care Facility Revolving Loan Fund. 24  Sec. 44.29.350. Child care facility revolving loan fund. (a) There is created 25 in the Department of Health and Social Services the child care facility revolving loan 26 fund to carry out the purposes of AS 44.29.350 - 44.29.389. Except as provided in (b) 27 and (c) of this section, the fund may not be used for any other purpose. 28  (b) The department may use money in the fund for costs of administering 29 AS 44.29.350 - 44.29.389. 30  (c) On June 30 of each fiscal year, the unexpended and unobligated cash 31 balance of the fund that is attributable to loans owned by the fund lapses into the 01 general fund. 02  Sec. 44.29.355. Special account established. 03  (a) There is established as a special account within the child care facility 04 revolving loan fund the foreclosure expense account. This account is established as 05 a reserve from fund equity. 06  (b) The commissioner of health and social services may expend money 07 credited to the foreclosure expense account when necessary to protect the state's 08 security interest in collateral on loans made under AS 44.29.360 or to defray expenses 09 incurred during foreclosure proceedings after a default by an obligor. 10  Sec. 44.29.360. Powers and duties of the department in administering the 11 fund.  (a) The department may 12  (1) make loans for the construction, renovation, and equipping of child 13 care facilities, including private nonprofit child care facilities; 14  (2) adopt regulations necessary to carry out the provisions of 15 AS 44.29.350 - 44.29.389, including regulations to establish reasonable fees for 16 services provided and charges for collecting the fee; and 17  (3) collect the fees and charges established under this subsection. 18  (b) The department shall 19  (1) develop eligibility standards for loans to child care facilities; 20  (2) adopt guidelines for the determination of loan terms. 21  Sec. 44.29.365. Loan terms. (a) A loan to a child care facility under 22 AS 44.29.350 - 44.29.389 may not exceed $50,000. 23  (b) The rate of interest charged shall be seven percent a year on the unpaid 24 balance of the loan. 25  (c) The duration for repayment of a loan may not exceed 20 years. 26  (d) All principal and interest payments, and any money chargeable to principal 27 or interest that is collected through liquidation by foreclosure or other process on loans 28 made under AS 44.29.350 - 44.29.389, shall be paid into the child care facility 29 revolving loan fund. 30  (e) If a child care facility ceases operation, any loan to the facility from the 31 fund is due on the date the facility ceases operation. 01  Sec. 44.29.370. Eligibility for loans. A child care facility is eligible for a 02 loan under AS 44.29.350 - 44.29.389 if the applicant 03  (1) submits to the department a plan for the use of the loan funds that 04 is approved by the commissioner; and 05  (2) meets additional eligibility standards established by the department 06 under AS 44.29.360(b)(1). 07  Sec. 44.29.375. Sale or transfer of mortgages and notes. The commissioner 08 of health and social services may sell or transfer at par value or at a premium to a 09 bank or other private purchaser for cash or other consideration the mortgages and notes 10 held by the department as security for loans made under AS 44.29.350 - 44.29.389. 11  Sec. 44.29.380. Disposal of property acquired by default or foreclosure. 12 The department shall dispose of property acquired through default or foreclosure of a 13 loan made under AS 44.29.350 - 44.29.389. Disposal shall be made in a manner that 14 serves the best interests of the state and may include the amortization of payments over 15 a period of years. 16  Sec. 44.29.389. Definitions. In AS 44.29.350 - 44.29.389, 17  (1) "child care facility" means an establishment the principal purpose 18 of which is to provide care for children not related by blood, marriage, or legal 19 adoption, including but not limited to day care centers, family day care homes, and 20 schools for preschool age children; 21  (2) "department" means the Department of Health and Social Services. 22 * Sec. 67. AS 44.31.020 is amended to read: 23  Sec. 44.31.020. Duties of department. The Department of Labor shall 24  (1) enforce the laws, and adopt regulations under them concerning 25 employer-employee relationships, including the safety, hours of work, wages, and 26 conditions of workers, including children; 27  (2) accumulate, analyze, and report labor statistics; 28  (3) operate systems of workers' compensation and unemployment 29 insurance; and 30  (4) gather data reflecting the cost of living in the various election 31 districts of the state upon request of the director of personnel under AS 39.27.030 ; and 01  (5) operate the federally funded employment and training programs 02 under 29 U.S.C. 1501 - 1792b (Job Training Partnership Act) . 03 * Sec. 68. AS 44.33.010 is amended to read: 04  Sec. 44.33.010. Commissioner of commerce and rural [ECONOMIC] 05 development. The principal executive officer of the Department of Commerce and 06  Rural  [ECONOMIC] Development is the commissioner of commerce and  rural  07 [ECONOMIC] development.  Whenever a statute provides that the commissioner 08 is a member of a board, council, or other similar entity, the commissioner may 09 designate another person to act in the commissioner's place. 10 * Sec. 69. AS 44.33 is amended by adding a new section to read: 11  Sec. 44.33.015. Establishment of divisions; directors. (a) The following 12 divisions are created within the department: 13  (1) the division of rural affairs; 14  (2) the division of statewide development; 15  (3) the division of occupational licensing; 16  (4) the division of investments; 17  (5) the division of insurance; 18  (6) the division of banking, securities, and corporations; and 19  (7) the division of administration. 20  (b) Each division designated in this section is under the administrative control 21 of the commissioner and under the supervision of a director who may be appointed by 22 the commissioner. 23  (c) The governor and the commissioner may not create a division within the 24 department that is not authorized under (a) of this section. 25 * Sec. 70. AS 44.33.020 is amended to read: 26  Sec. 44.33.020. Duties of department. The Department of Commerce and 27  Rural  [ECONOMIC] Development shall 28  (1) administer the state programs relating to commerce, enforce the 29 laws relating to these programs, and adopt regulations under these laws; 30  (2) register corporations; 31  (3) collect corporation franchise taxes; 01  (4) enforce state laws regulating public utilities and other public service 02 enterprises, banking and securities, insurance, and other businesses and enterprises 03 touched with a public interest; 04  (5) make veterans' loans; 05  (6) [REPEALED 06  (7)] promote and develop civil aviation; 07   (7)  [(8)] furnish the budgeting, clerical, and administrative services for 08 regulatory agencies and professional and occupational licensing boards not otherwise 09 provided for; 10   (8)  [(9) REPEALED 11  (10) REPEALED 12  (11) REPEALED 13  (12)] conduct studies, enter into contracts and agreements, and make 14 surveys relating to the economic development of the state and, when appropriate, 15 assemble, analyze, and disseminate the findings obtained; 16   (9)  [(13)] provide factual information and technical assistance for 17 potential industrial and commercial investors; 18   (10)  [(14)] receive gifts, grants, and other aid that facilitate the powers 19 and duties of the department from agencies and instrumentalities of the United States 20 or other public or private sources; 21   (11)  [(15)] establish and activate programs to achieve balanced 22 economic development in the state and advise the governor on economic development 23 policy matters; 24   (12)  [(16)] formulate a continuing program for basic economic 25 development and for the necessary promotion, planning and research that will advance 26 the economic development of the state; 27   (13)  [(17)] cooperate with private, governmental ,  and other public 28 institutions and agencies in the execution of economic development programs; 29   (14)  [(18)] review the programs and annual reports of other departments 30 and agencies as they are related to economic development and prepare an annual report 31 on the economic growth of the state; 01   (15)  [(19)] administer the economic development programs of the state; 02   (16)  [(20)] perform all other duties and powers necessary or proper in 03 relation to economic development and planning for the state; 04   (17)  [(21)] request tourism-related businesses in the state to provide 05 data regarding occupancy levels, traffic flow and gross receipts and to participate in 06 visitor surveys conducted by the department; data collected under this paragraph  that  07 [WHICH] discloses the particulars of an individual business is not a matter of public 08 record and shall be kept confidential; however, this restriction does not prevent the 09 department from using the data to formulate tourism economic impact information 10 including expenditure patterns, tax receipts and fees, employment and income 11 attributable to tourism, and other information considered relevant to the planning, 12 evaluation and policy direction of tourism in the state; 13   (18)  [(22) REPEALED 14  (23) REPEALED 15  (24)] provide administrative and budgetary services to the real estate 16 commission under as 08.88 as requested by the commission; 17   (19)  [(25) REPEALED 18  (26) REPEALED 19  (27) REPEALED 20  (28)] sell at cost, to the extent possible, publications and promotional 21 materials developed by the department; 22   (20)  [(29)] as delegated by the governor, administer under 16 U.S.C. 23 1856 the internal waters foreign processing permit procedures and collect related fees; 24   (21)  [(30)] administer state laws relating to the issuance of business 25 licenses; 26   (22) comply with AS 15.07.055 to serve as a voter registration 27 agency to the extent required by state and federal law, including 42 U.S.C. 1973gg 28 (National Voter Registration Act of 1993); 29  [(31) REPEALED 30  (32) REPEALED 31  (33) FOSTER THE GROWTH OF INTERNATIONAL TRADE 01 WITHIN THE STATE AND ADMINISTER ALASKA FOREIGN OFFICES]. 02 * Sec. 71. AS 44.33.020 is amended by adding a new subsection to read: 03  (b) The department may 04  (1) advise and assist local governments; 05  (2) serve as staff for the Local Boundary Commission; 06  (3) conduct studies and carry out experimental and pilot projects for the 07 purpose of developing solutions to community and regional problems; 08  (4) promote cooperative solutions to problems affecting more than one 09 community or region, including joint service agreements, regional compacts, and other 10 forms of cooperation; 11  (5) serve as a clearinghouse for information useful in solution of 12 community and regional problems, and channel to the appropriate authority requests 13 for information and services; 14  (6) advise and assist community and regional governments on matters 15 of finance, including but not limited to bond marketing and procurement of federal 16 funds; 17  (7) prepare suggested guidelines relating to the content of notice of 18 bond sale advertisements, prospectuses, and other bonding matters issued by local 19 governments; 20  (8) administer state funds appropriated for the benefit of unorganized 21 regions within the state, allowing for maximum participation by local advisory councils 22 and similar bodies; 23  (9) carry out those administrative functions in the unorganized borough 24 that the legislature may prescribe; 25  (10) study existing and proposed laws and state activities that affect 26 community and regional affairs and submit to the governor recommended changes in 27 those laws and activities; 28  (11) coordinate activities of the state that affect community and 29 regional affairs; 30  (12) assist in the development of new communities and serve as the 31 agent of the state for purposes of participation in federal programs relating to new 01 communities; 02  (13) supervise planning, management, and other activities required for 03 local eligibility for financial aid under those federal and state programs that provide 04 assistance to community and regional governments; 05  (14) advise and assist municipalities on procedures of assessment, 06 valuation, and taxation, and notify municipalities of major errors in those procedures; 07  (15) apply for, receive, and use funds from federal and other sources, 08 public or private, for use in carrying out the powers and duties of the department; 09  (16) request and utilize the resources of other agencies of state 10 government in carrying out the purposes of this chapter to the extent such utilization 11 is more efficient than maintaining departmental staff, reimbursing the other agencies 12 when appropriate; 13  (17) carry out the powers and duties assigned it under AS 42.45; 14  (18) administer state and, as appropriate, federal programs for revenue 15 sharing, grants, and other forms of financial assistance to community and regional 16 governments; and 17  (19) carry out other functions and duties, consistent with law, necessary 18 or appropriate to accomplish the purpose of this chapter. 19 * Sec. 72. AS 44.33 is amended by adding new sections to article 1 to read: 20  Sec. 44.33.112. Fees for publications, research data, and other services. 21 The commissioner may establish by regulation and the department may charge 22 reasonable fees for department publications, research data, and other centralized 23 administrative services to cover the cost of reproduction, printing, mailing, distribution, 24 and other centralized administrative services. 25  Sec. 44.33.115. Exxon Valdez oil spill unincorporated rural community 26 grant fund. There is created in the department the Exxon Valdez oil spill 27 unincorporated rural community grant fund. The fund consists of money appropriated 28 to the fund from the Exxon Valdez oil spill restoration fund, the Alyeska settlement 29 fund, and other sources. Appropriations to the fund do not lapse unless otherwise 30 provided by the legislature in the bill making the appropriation to the fund. The 31 department may use the fund to make grants to unincorporated rural communities in 01 the area affected by the Exxon Valdez oil spill for capital projects for purposes of 02 restoring, replacing, or enhancing subsistence resources or services or other services 03 damaged or lost as the result of the Exxon Valdez oil spill. In this section, 04  (1) "Alyeska settlement fund" means the trust fund established in the 05 state treasury for the purpose of receiving, holding, and disbursing the settlement 06 proceeds received by the state under the Agreement and Consent Decree in re: The 07 Exxon Valdez, United States District Court, District of Alaska, Case No. A92-175 08 Civil, decree entered November 25, 1992; 09  (2) "Exxon Valdez oil spill restoration fund" means the fund established 10 by the Department of Revenue to implement the judgment entered by the United States 11 District Court for Alaska in the criminal case United States of America v. Exxon 12 Shipping Company and Exxon Corporation, No. A90-015 CR. 13  Sec. 44.33.118. Definitions. In AS 44.33.010 - 44.33.118, 14  (1) "commissioner" means the commissioner of commerce and rural 15 development; 16  (2) "department" means the Department of Commerce and Rural 17 Development. 18 * Sec. 73. AS 44.33 is amended by adding new sections to read: 19 Article 8A. Rural Development. 20  Sec. 44.33.740. Powers and duties. To promote development of rural areas 21 of the state, the department is authorized to 22  (1) investigate social and economic conditions of rural areas to 23 determine the need to expand economic opportunities and improve living conditions; 24  (2) formulate a coordinated program to broaden and diversify the 25 economic base of rural areas; 26  (3) coordinate administration of emergency relief, surplus food 27 distribution, or other public assistance programs, except the regular relief and 28 assistance programs of the federal government in rural areas; 29  (4) formulate and conduct a program of construction of basic facilities 30 to improve health, welfare, and economic security and provide employment and 31 income in the rural areas; 01  (5) promote training and educational programs designed to expand 02 employment opportunities for residents of rural areas; 03  (6) enter into agreements with other state agencies and departments to 04 provide for the distribution in rural communities of surplus electrical power from state- 05 owned power sources located in those communities and to expend funds for this purpose; 06  (7) make grants to communities for bulk fuel storage facilities; 07  (8) cooperate with the Department of Environmental Conservation and 08 other agencies to provide technical assistance to communities in the installation, 09 operation, and management of bulk fuel storage facilities. 10  Sec. 44.33.745. Limitations. A program of the department under 11 AS 44.33.740 in a rural area may not exceed $100,000 in cost a year. 12  Sec. 44.33.750. Bulk fuel storage facilities grant fund. (a) There is 13 established in the department the bulk fuel storage facilities grant fund. Grants may 14 be made by the department from this fund to a community to acquire and install 15 community bulk storage facilities. 16  (b) Grants made under this section for the acquisition and installation of a bulk 17 fuel storage facility may not exceed $100,000 per community. 18  (c) If the governing body of two or more communities determine that their fuel 19 requirements may be served by a single bulk fuel storage facility, the communities 20 may jointly apply for grants to acquire and install a single bulk fuel storage facility. 21 When communities apply jointly under this subsection, the limitation in (b) of this 22 section is multiplied by the number of communities that submit the joint application. 23  (d) Before a grant is made under this section, the city council or, if the 24 community is not incorporated, a reasonable representative body in the community 25 shall agree in writing to maintain and operate the bulk storage facility to be 26 constructed with the proceeds of the grant. 27  Sec. 44.33.755. Land conveyed in trust. (a) The commissioner 28  (1) shall accept, administer, and dispose of land conveyed to the state 29 in trust by village corporations under 43 U.S.C. 1613(c)(3) (Sec. 14(c)(3) of the Alaska 30 Native Claims Settlement Act) for the purposes specified in that section; 31  (2) may, with the concurrence of an appropriate village entity 01 recognized by the commissioner under (b) of this section or, in the absence of an 02 appropriate village entity, under procedures prescribed by regulations of the 03 commissioner, accept, administer, and dispose of land conveyed in trust by a state or 04 federal agency and by the dissolution of a municipality under AS 29.06.450 - 05 29.06.530. 06  (b) Transfer of land by sale, lease, right-of-way, easement, or permit, including 07 transfer of surface resources, may be made by the commissioner only after approval 08 of an appropriate village entity such as the traditional council, a village meeting, or a 09 village referendum. This approval shall be by resolution filed with the department. 10  (c) Within one complete state fiscal year after the incorporation of a 11 municipality in the village or of a municipality that includes all or part of the village, 12 land acquired under this section shall be conveyed without cost to the municipality, 13 and the municipality shall succeed to all the entrusted interest in the land. 14  (d) Separate accounts shall be maintained in the name of each village for the 15 land, including the revenue from the land, acquired from each village corporation 16 under this section, and every two years within 90 days of the close of the second state 17 fiscal year a statement of the account for each municipality shall be prepared by the 18 commissioner and be made available to the village and to the public upon request. 19  (e) Upon the conveyance of land to a municipality under this section, the 20 commissioner shall account to the municipality for all profits including interest 21 generated from the land. The municipality may then request the governor to submit 22 a request to the legislature for an appropriation for the amount due the municipality. 23  (f) Title to or an interest in land acquired by the department under this section 24 may not be acquired by adverse possession or prescription. Notwithstanding (a) - (e) 25 of this section, on the dissolution of a municipality under AS 29.06.450 - 29.06.530, 26 unimproved land that was owned by the municipality on the date of its dissolution and 27 received by the municipality from the state under a municipal land grant entitlement 28 program is transferred to the commissioner of natural resources. 29  (g) For the purposes of this section, "municipality" includes only first and 30 second class cities incorporated under the laws of the state. 31  Sec. 44.33.760. Loan information officers. (a) The department may provide 01 itinerant loan information officers to serve persons who reside outside the major 02 population centers of the state. 03  (b) The loan information officers shall be trained, to the extent that the 04 department considers necessary, in a program administered by the department and 05 approved by the Alaska Housing Finance Corporation, the Alaska Industrial 06 Development and Export Authority, and the principal departments of the executive 07 branch that administer loan programs. 08  (c) A majority of the loan information officers shall be persons who are 09 conversant in Alaska Native languages that are spoken by a significant number of 10 Alaska Natives. The department shall provide brochures and other printed materials, 11 written in easily understandable English and in the Alaska Native languages that are 12 spoken by a significant number of Alaska Natives, for distribution by the loan 13 information officers. The brochures and printed materials must explain the purposes 14 of the various state loan programs, the minimum qualifications under the programs, the 15 method for obtaining assistance in the completion of applications for the programs, and 16 other information the department determines will improve the access of persons in 17 rural areas to the state's loan programs. 18  (d) The department shall coordinate its efforts under this section with local 19 financial institutions and community groups to determine the proper itinerary and travel 20 schedule of the loan information officers and to provide adequate notice to persons in 21 rural areas of the itinerary and travel schedule of the loan information officers. 22  (e) The department shall assign the loan information officers to rural areas 23 based on the current and potential future demands for loans in those areas and shall 24 establish offices for the loan information officers in rural areas if the department 25 determines it is necessary to provide familiarity with the area served by the loan 26 information officers and to reduce travel costs. 27  Sec. 44.33.765. Rural development initiative fund. (a) The rural 28 development initiative fund is created in the department. Unless provided otherwise 29 in the appropriation act, an appropriation to the fund is retained in the fund for use 30 under AS 44.33.765 - 44.33.775 and does not lapse at the end of a fiscal year. Each 31 year the commissioner shall request an appropriation to the fund of interest and other 01 income earned on loans or investments of the fund. Money in the fund may be 02 appropriated for costs of administering AS 44.33.765 - 44.33.775. 03  (b) The commissioner may place money from the fund into a special reserve 04 account as necessary. The commissioner may use money in the account to protect the 05 state's security interest in collateral on loans made from the fund, to protect the state's 06 interests in investments made from the fund, or to defray expenses incurred during 07 foreclosure or other legal proceedings involving loans or investments made from the 08 fund. 09  (c) The commissioner may use money from the fund to provide for loan 10 information officers under AS 44.33.760. 11  Sec. 44.33.770. Rural development loans. (a) The department may use 12 money from the rural development initiative fund to make a loan of up to $100,000 13 to a person, or a loan of up to $200,000 to two or more persons, to be used for 14 working capital, equipment, construction, or other commercial purposes by a business 15 located in a community with a population of 5,000 or less. A person who has received 16 a loan under this subsection may not be granted another loan until after the original 17 loan is entirely repaid. 18  (b) The department shall require collateral for each loan made under this 19 section and shall require that a reasonable amount of money from other nonstate 20 sources be committed for use on any project or enterprise for which money from a 21 loan will be used. The department by regulation may establish other conditions for 22 loans. The department shall by regulation establish rates of interest that are not less 23 than six percent a year and terms of repayment for loans made under this section. 24  Sec. 44.33.775. Disposal of property acquired by default or foreclosure. 25 The department shall dispose of property acquired through default or foreclosure of a 26 loan made from the rural development initiative fund. Disposal shall be made in a 27 manner that serves the best interests of the state, and may include the amortization of 28 payments over a period of years. The commissioner shall request an appropriation to 29 the fund of proceeds from disposal of property under this section. 30  Sec. 44.33.780. Definitions. In AS 44.33.740 - 44.33.780, 31  (1) "commissioner" means the commissioner of commerce and rural 01 development; 02  (2) "department" means the Department of Commerce and Rural 03 Development. 04 Article 8B. Planning Assistance. 05  Sec. 44.33.781. Planning assistance for development and maintenance of 06 district coastal management programs. (a) The department shall conduct a program 07 of research, training, and technical assistance to coastal resource districts necessary for 08 the development and implementation of district coastal management programs under 09 AS 46.40. The technical assistance shall include the direct granting to the coastal 10 resource districts of a portion of any funds received by the state from the federal 11 coastal zone management program, in amounts to be individually determined for each 12 coastal resource district by the commissioner of commerce and rural development. 13 State agencies shall assist the department in carrying out the purposes of this section. 14  Sec. 44.33.782. Planning assistance to platting authorities.  To facilitate 15 planning in municipalities that exercise planning and zoning authority, the department 16 may provide planning assistance, including but not limited to surveys, land use studies, 17 urban renewal plans, technical services, model acts that include regulations designed 18 to encourage development and use of energy systems not dependent on oil or gas, and 19 other planning work to a city, borough, or other platting authority. In an area under 20 the jurisdiction, for planning purposes, of a city, borough, or other platting authority, 21 the department may not perform the planning work except at the request or with the 22 consent of the local authority. 23  Sec. 44.33.784. Assistance by cities and platting authorities.  A city or 24 platting authority may make funds under its control available to the department for the 25 purposes of obtaining planning work or planning assistance, or both, for its area. The 26 department may contract for, accept, and expend the funds for urban planning for the 27 local jurisdiction. 28  Sec. 44.33.786. Land use planning and state facility procurement plan. 29 The department shall make recommendations to the Department of Transportation and 30 Public Facilities and to appropriate program agencies concerning the effect upon the 31 comprehensive plan or other land use plans or proposals of municipalities and 01 unincorporated communities with respect to the facility procurement plan required to 02 be prepared in accordance with AS 35.10.170 and AS 44.42.055. 03  Sec. 44.33.788. Other planning powers. The department may accept and 04 expend grants from the federal government and other public or private sources, may 05 contract with reference to them, and may enter into contracts and exercise all other 06 powers necessary to carry out AS 44.33.781 - 44.33.788. 07  Sec. 44.33.790. Definition. In AS 44.33.782 - 44.33.790, "department" means 08 the Department of Commerce and Rural Development. 09 * Sec. 74. AS 44.33 is amended by adding new sections to read: 10 Article 9A. Local Boundary Commission. 11  Sec. 44.33.810. Local boundary commission. There is in the Department of 12 Commerce and Rural Development a local boundary commission. The local boundary 13 commission consists of five members appointed by the governor for overlapping five- 14 year terms. One member shall be appointed from each of the four judicial districts described 15 in AS 22.10.010 and one member shall be appointed from the state at large. The member 16 appointed from the state at large is the chair of the commission. 17  Sec. 44.33.812. Powers and duties. (a) The local boundary commission shall 18  (1) make studies of local government boundary problems; 19  (2) adopt regulations providing standards and procedures for municipal 20 incorporation, annexation, detachment, merger, consolidation, reclassification, and 21 dissolution; 22  (3) consider a local government boundary change requested of it by the 23 legislature, the commissioner of commerce and rural development, or a political 24 subdivision of the state; and 25  (4) develop standards and procedures for the extension of services and 26 ordinances of incorporated cities into contiguous areas for limited purposes upon 27 majority approval of the voters of the contiguous area to be annexed and prepare 28 transition schedules and prorated tax mill levies as well as standards for participation 29 by voters of these contiguous areas in the affairs of the incorporated cities furnishing 30 services. 31  (b) The local boundary commission may 01  (1) conduct meetings and hearings to consider local government 02 boundary changes and other matters related to local government boundary changes, 03 including extensions of services by incorporated cities into contiguous areas and 04 matters related to extension of services; and 05  (2) present to the legislature during the first 10 days of a regular 06 session proposed local government boundary changes, including gradual extension of 07 services of incorporated cities into contiguous areas upon a majority approval of the 08 voters of the contiguous area to be annexed and transition schedules providing for total 09 assimilation of the contiguous area and its full participation in the affairs of the 10 incorporated city within a period not to exceed five years. 11  Sec. 44.33.814. Meetings and hearings. The chair of the commission or the 12 commissioner of commerce and rural development with the consent of the chair may 13 call a meeting or hearing of the local boundary commission. All meetings and 14 hearings shall be public. 15  Sec. 44.33.816. Minutes and records. The local boundary commission shall 16 keep minutes of all meetings and hearings. If the proceedings are transcribed, minutes 17 shall be made from the transcription. The minutes are a public record. All votes taken 18 by the commission shall be entered in the minutes. 19  Sec. 44.33.818. Notice of public hearings. Public notice of a hearing of the 20 local boundary commission shall be given in the area in which the hearing is to be 21 held at least 15 days before the date of the hearing. The notice of the hearing must 22 include the time, date, place, and subject of the hearing. The commissioner of 23 commerce and rural development shall give notice of the hearing at least three times 24 in the press, through other news media, or by posting in a public place, whichever is 25 most feasible. 26  Sec. 44.33.820. Quorum. Three members of the commission constitute a 27 quorum for the conduct of business at a meeting. Two members constitute a quorum 28 for the conduct of business at a hearing. 29  Sec. 44.33.822. Boundary change. A majority of the membership of the local 30 boundary commission must vote in favor of a proposed boundary change before it may 31 be presented to the legislature. 01  Sec. 44.33.824. Expenses. Members of the local boundary commission receive 02 no pay but are entitled to the travel expenses and per diem authorized for members of 03 boards and commissions under AS 39.20.180. 04  Sec. 44.33.826. Hearings on boundary changes. A local government 05 boundary change may not be proposed to the legislature unless a hearing on the change 06 has been held in or in the near vicinity of the area affected by the change. 07  Sec. 44.33.828. When boundary change takes effect. When a local 08 government boundary change is proposed to the legislature during the first 10 days of 09 any regular session, the change becomes effective 45 days after presentation or at the 10 end of the session, whichever is earlier, unless disapproved by a resolution concurred 11 in by a majority of the members of each house. 12 Article 9B. Borough Feasibility Studies. 13  Sec. 44.33.840. Borough feasibility studies. The commissioner may contract 14 for studies of the feasibility of establishing boroughs in the unorganized borough. A 15 study may be conducted under this section only if 16  (1) appropriations are available for that purpose; and 17  (2) the study is requested by a person residing in the area to be studied 18 or by a city located in the area to be studied. 19  Sec. 44.33.842. Requests for studies. A request for a study of the feasibility 20 of establishing a borough in the unorganized borough shall be submitted to the 21 commissioner in writing and must include 22  (1) a description of the boundaries of the area of the proposed study; 23 and 24  (2) an indication of local interest in the proposed study consisting of 25 either 26  (A) a petition requesting the study containing the signatures and 27 addresses of five percent of the voters residing in the area of the proposed 28 study based on the number of voters who voted in the area in the last statewide 29 election; or 30  (B) resolutions requesting the study adopted by the governing 31 bodies of at least five percent of the cities within the area of the proposed 01 study. 02  Sec. 44.33.844. Boundaries. The boundaries of an area studied shall conform 03 to the boundaries indicated in the request for the study under AS 44.33.842 unless the 04 commissioner, after a public hearing held in the area of the proposed study, determines 05 that the boundaries should be altered. In determining the boundaries of an area to be 06 studied, the commissioner shall consider 07  (1) the standards applicable to the incorporation of boroughs under 08 AS 29.05.031; 09  (2) boundaries of regional corporations established under 43 U.S.C. 10 1606; 11  (3) census divisions of the state used for the 1980 census; 12  (4) boundaries of the regional educational attendance areas established 13 under AS 14.08.031; and 14  (5) boundaries of coastal resource service areas organized under 15 AS 46.40.110 - 46.40.210. 16  Sec. 44.33.846. Contracts. (a) The commissioner shall contract for a study 17 of the feasibility of establishing a borough in the unorganized borough by following 18 the procedures under AS 36.30 (State Procurement Code). The commissioner shall 19 include terms in the contract that provide for 20  (1) public participation in the preparation of the study; 21  (2) completion of the study not later than June 30 of the third year after 22 the year the contract is executed. 23  (b) A study under this section must include 24  (1) a recommendation for or against incorporation of a borough 25 containing all or part of the area studied; 26  (2) an evaluation of the economic development potential of the area 27 studied; 28  (3) an evaluation of capital facility needs of the area studied; 29  (4) an evaluation of demographic, social, and environmental factors 30 affecting the area studied; 31  (5) an evaluation of the relationships among regional educational 01 attendance areas, coastal resource service areas, and other regional entities responsible 02 for providing services in the area studied; 03  (6) an evaluation of the relationships between the existing cities within 04 the area studied and regional entities responsible for providing services in the area; and 05  (7) specific recommendations for 06  (A) organization of a home rule or general law borough 07 government if one is recommended; 08  (B) changes in organization of cities in the area studied; or 09  (C) the improvement of the delivery of services to the public 10 by the state in the area studied. 11  Sec. 44.33.849. Definition. In AS 44.33.840 - 44.33.849, "commissioner" 12 means the commissioner of commerce and rural development. 13 Article 9C. Alaska Regional Economic Assistance Program. 14  Sec. 44.33.895. Alaska regional economic assistance program. (a) The 15 department shall 16  (1) encourage the formation of regional development organizations by 17 providing assistance in forming organizations to interested individuals, including 18 information on how to qualify and apply for regional development grants and federal 19 funding under 42 U.S.C. 3121 - 3246 (Public Works and Economic Development Act 20 of 1965), as amended; 21  (2) assist an interested individual in establishing boundaries for a 22 proposed organization to ensure that the region 23  (A) is of sufficient geographic size and contains a large enough 24 population to form an economically viable unit with shared interests, resources, 25 traditions, and goals; 26  (B) contains at least one municipality that serves as a regional 27 center; and 28  (C) contains the entire area of each municipality included in the 29 region; 30  (3) gather information about regional economic issues, international 31 trade, and tourism from organizations; 01  (4) serve as liaison between organizations and other state agencies and 02 encourage other agencies to make resources available to help accomplish goals of the 03 organizations; 04  (5) assist each organization to 05  (A) provide services designed to encourage economic 06 development to local communities and businesses; 07  (B) collect and distribute economic information relevant to the 08 region; 09  (C) participate in state marketing campaigns and join state trade 10 missions that are relevant to the region; and 11  (D) develop and implement strategies to attract new industry, 12 expand international trade opportunities, and encourage tourism within the 13 region. 14  (b) Subject to (c) of this section, the department may make regional 15 development grants to organizations for projects the department determines will be of 16 value in encouraging economic development. During a fiscal year, the department may 17 make no more than 15 grants and may only make grants to one organization from a 18 particular region. An organization that is designated an economic development district 19 under 42 U.S.C. 3171 qualifies for grants under this subsection. The department shall 20 by regulation adopt procedures for applying for regional development grants, including 21 application deadlines. The department may by regulation establish additional grant 22 eligibility requirements. 23  (c) To qualify for a grant, a regional development organization must match the 24 grant by providing an amount of money from nonstate sources. The department shall 25 establish by regulation a formula that determines the amount of the match required 26 under this subsection based on the capability of each organization to generate money 27 from nonstate sources. The amount of match required may not exceed the amount of 28 grant money and may not be less than 20 percent of the grant. The total amount of 29 grant money provided to an organization during a fiscal year may not exceed 30 $100,000. 31  (d) There is established in the department the regional development fund 01 consisting of appropriations to the fund. Money from the fund may be used only for 02 regional development grants. 03  (e) In this section, 04  (1) "department" means the Department of Commerce and Rural 05 Development; 06  (2) "regional development organization" or "organization" means a 07 nonprofit organization or nonprofit corporation formed to encourage economic 08 development within a particular region of the state that includes the entire area of each 09 municipality within that region and that has a board of directors that represents the 10 region's economic, political, and social interests. 11 * Sec. 75. AS 44.85.030 is amended to read: 12  Sec. 44.85.030. Membership and vacancies. The bond bank authority 13 consists of the following five directors: the commissioner of revenue, the commissioner 14 of  commerce and rural development  [COMMUNITY AND REGIONAL AFFAIRS], 15 who shall each be a director ex officio with voting privileges, and three directors 16 appointed by the governor. The appointment of each director other than the 17 commissioner of revenue and the commissioner of  commerce and rural development  18 [COMMUNITY AND REGIONAL AFFAIRS] is subject to confirmation by the 19 legislature. The three directors appointed by the governor serve at the governor's 20 pleasure for four-year terms. They must be residents of the state and qualified voters 21 at the time of appointment and shall comply with the requirements of AS 39.50 22 (conflict of interest). Each director shall hold office for the term of appointment and 23 until a successor has been appointed and qualified. A director is eligible for 24 reappointment. A vacancy in a directorship occurring other than by expiration of term 25 shall be filled in the same manner as the original appointment but for the unexpired 26 term only. Each director before entering upon the duties of office shall take and 27 subscribe to an oath to perform the duties faithfully, impartially, and justly to the best 28 of the director's ability. A record of the oath shall be filed in the office of the 29 governor. 30 * Sec. 76. AS 44.85.320(b) is amended to read: 31  (b) Before declaring the principal of notes or bonds due and payable, the 01 trustee must first give 30 days' notice in writing to the governor, the bond bank 02 authority, the commissioner of  commerce and rural development  [COMMUNITY 03 AND REGIONAL AFFAIRS], and the attorney general of the state. 04 * Sec. 77. AS 46.03.900(32) is amended to read: 05  (32) "village" means a place within the unorganized borough or within 06 a borough as to a power, function, or service that is not exercised or provided by the 07 borough on an areawide or nonareawide basis that 08  (A) has irrevocably waived, in a form approved by the 09 Department of Law, any claim of sovereign immunity that might arise under 10 this chapter; and 11  (B) has 12  (i) a council organized under 25 U.S.C. 476 (sec. 16 of 13 the Indian Reorganization Act); 14  (ii) a traditional village council recognized by the United 15 States as eligible for federal aid to Indians; or 16  (iii) a council recognized by the commissioner of 17  commerce and rural development  [COMMUNITY AND REGIONAL 18 AFFAIRS] under regulations adopted by the Department of  Commerce 19 and Rural Development  [COMMUNITY AND REGIONAL 20 AFFAIRS] to determine and give official recognition of village entities 21 under  AS 44.33.755(b)  [AS 44.47.150(b)]; 22 * Sec. 78. AS 46.04.900(22) is amended to read: 23  (22) "village" means a place within the unorganized borough or within 24 a borough as to a power, function, or service that is not exercised or provided by the 25 borough on an areawide or nonareawide basis that 26  (A) has irrevocably waived, in a form approved by the 27 Department of Law, any claim of sovereign immunity that might arise under 28 this chapter; and 29  (B) has 30  (i) a council organized under 25 U.S.C. 476 (sec. 16 of 31 the Indian Reorganization Act); 01  (ii) a traditional village council recognized by the United 02 States as eligible for federal aid to Indians; or 03  (iii) a council recognized by the commissioner of 04  commerce and rural development  [COMMUNITY AND REGIONAL 05 AFFAIRS] under regulations adopted by the Department of  Commerce 06 and Rural Development  [COMMUNITY AND REGIONAL 07 AFFAIRS] to determine and give official recognition of village entities 08 under  AS 44.33.755(b)  [AS 44.47.150(b)]; 09 * Sec. 79. AS 46.08.040(a) is amended to read: 10  (a) In addition to money in the response account of the fund that is transferred 11 to the commissioner of  commerce and rural development  [COMMUNITY AND 12 REGIONAL AFFAIRS] to make grants under AS 29.60.510 and to pay for impact 13 assessments under AS 29.60.560, the commissioner of environmental conservation may 14 use money 15  (1) from the response account in the fund 16  (A) when authorized by AS 46.08.045, to investigate and 17 evaluate the release or threatened release of oil or a hazardous substance, and 18 contain, clean up, and take other necessary action, such as monitoring and 19 assessing, to address a release or threatened release of oil or a hazardous 20 substance that poses an imminent and substantial threat to the public health or 21 welfare, or to the environment; 22  (B) to provide matching funds in the event of a release of oil 23 or a hazardous substance for which use of the response account is authorized 24 by AS 46.08.045 for participation 25  (i) in federal oil discharge cleanup activities; and 26  (ii) under 42 U.S.C. 9601 - 9657 (Comprehensive 27 Environmental Response, Compensation, and Liability Act of 1980); 28 and 29  (C) to recover the costs to the state, a municipality, a village, 30 or a school district of a containment and cleanup resulting from the release or 31 the threatened release of oil or a hazardous substance for which money was 01 expended from the response account; 02  (2) from the prevention account in the fund to 03  (A) investigate and evaluate the release or threatened release of 04 oil or a hazardous substance, except a release described in AS 46.08.045(a), 05 and contain, clean up, and take other necessary action, such as monitoring and 06 assessing, to address a release or threatened release of oil or a hazardous 07 substance, except a release described in AS 46.08.045(a); 08  (B) pay all costs incurred 09  (i) to establish and maintain the oil and hazardous 10 substance response office; 11  (ii) under agreements entered into under AS 46.04.090 12 or AS 46.09.040; 13  (iii) to review oil discharge prevention and contingency 14 plans submitted under AS 46.04.030; 15  (iv) to conduct training, response exercises, inspections, 16 and tests, in order to verify equipment inventories and ability to prevent 17 and respond to oil and hazardous substance release emergencies, and to 18 undertake other activities intended to verify or establish the 19 preparedness of the state, a municipality, or a party required by 20 AS 46.04.030 to have an approved contingency plan to act in 21 accordance with that plan; and 22  (v) to verify or establish proof of financial responsibility 23 required by AS 46.04.040; 24  (C) pay, when presented with appropriate documentation by the 25 Department of Military and Veterans' Affairs, the expenses incurred by the 26 Department of Military and Veterans' Affairs for Alaska State Emergency 27 Response Commission activities, including staff support, when the activities 28 and staff support relate to oil or hazardous substances, and for the costs of 29 being prepared for responding to a request by the department for support in 30 response and restoration, but not including the costs of maintaining the 31 response corps and the emergency response depots under AS 26.23.045; 01  (D) pay all costs incurred to acquire, repair, or improve an asset 02 having an anticipated life of more than one year and that is acquired, repaired, 03 or improved as a preparedness measure by which the state may respond to, 04 recover from, reduce, or eliminate the effects of a release or threatened release 05 of oil or a hazardous substance; 06  (E) pay the costs, if approved by the commissioner, that were 07 incurred by local emergency planning committees to carry out the duties 08 assigned them by AS 46.13.080; 09  (F) provide matching funds in the event of the release of oil or 10 a hazardous substance, except a release of oil for the containment and cleanup 11 of which use of the response account is authorized by AS 46.08.045, for 12 participation 13  (i) in federal oil discharge cleanup activities; and 14  (ii) under 42 U.S.C. 9601 - 9657 (Comprehensive 15 Environmental Response, Compensation, and Liability Act of 1980); 16  (G) pay or reimburse the storage tank assistance fund 17 established in AS 46.03.410 for expenditures from that fund authorized by 18 AS 46.03.410(b); 19  (H) transfer to the Department of  Commerce and Rural 20 Development  [COMMUNITY AND REGIONAL AFFAIRS] for payment by 21 the commissioner of  commerce and rural development  [COMMUNITY AND 22 REGIONAL AFFAIRS] of 23  (i) municipal impact grants when authorized under 24 AS 29.60.510(b)(2); 25  (ii) assessments of the social and economic effects of the 26 release of oil or hazardous substances as required by AS 29.60.560 27 when, in the judgment of the commissioner, the release of oil or a 28 hazardous substance is not one that is described in AS 46.08.045; and 29  (iii) grants to repair, improve, or replace fuel storage 30 facilities under the bulk fuel system emergency repair and upgrade 31 program; 01  (I) recover the costs to the state, a municipality, a village, or a 02 school district of a containment and cleanup resulting from the release or 03 threatened release of oil or a hazardous substance for which money was 04 expended from the prevention account; 05  (J) prepare, review, and revise 06  (i) the state's master oil and hazardous substance 07 discharge prevention and contingency plan required by AS 46.04.200; 08 and 09  (ii) a regional master oil and hazardous substance 10 discharge prevention and contingency plan required by AS 46.04.210; 11 and 12  (K) restore the environment by addressing the effects of an oil 13 or hazardous substance release. 14 * Sec. 80. AS 46.08.900(16) is amended to read: 15  (16) "village" means a place within the unorganized borough or within 16 a borough if the power, function, or service for which a grant application under 17 AS 29.60.510 is submitted is not exercised or provided by the borough on an areawide 18 or nonareawide basis at the time the grant application is submitted that 19  (A) has irrevocably waived, in a form approved by the 20 Department of Law, any claim of sovereign immunity that might arise in 21 connection with the use of grant money under this chapter; and 22  (B) has 23  (i) a council organized under 25 U.S.C. 476 (sec. 16 of 24 the Indian Reorganization Act); 25  (ii) a traditional village council recognized by the United 26 States as eligible for federal aid to Indians; or 27  (iii) a council recognized by the commissioner of 28  commerce and rural development  [COMMUNITY AND REGIONAL 29 AFFAIRS] under regulations adopted by the Department of  Commerce 30 and Rural Development  [COMMUNITY AND REGIONAL 31 AFFAIRS] to determine and give official recognition of village entities 01 under  AS 44.33.755(b)  [AS 44.47.150(b)]. 02 * Sec. 81. AS 46.40.120(b) is amended to read: 03  (b) The commissioner of  commerce and rural development  [THE 04 DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS] may, after public 05 hearings held in the area affected, consolidate two or more regional educational 06 attendance areas as a single coastal resource service area 07  (1) if a substantial portion of the coastal area contains land and water 08 area owned by the federal government over which it exercises exclusive jurisdiction 09 or land held in trust by the federal government for Alaska Natives over which the state 10 would not exercise control as to use; or 11  (2) if, after giving due consideration to the standards applicable to 12 incorporation of borough governments and the likelihood that a borough will be 13 incorporated within the area, the commissioner determines that the functions to be 14 performed under this chapter could be undertaken more efficiently through the 15 combination of two or more regional educational attendance areas as a single coastal 16 resource service area. 17 * Sec. 82. AS 46.40.120(d) is amended to read: 18  (d) For purposes of coastal zone management only, the commissioner of 19  commerce and rural development  [COMMUNITY AND REGIONAL AFFAIRS] 20 may, after public hearings held in the regional educational attendance area affected, 21 divide an existing regional educational attendance area into no more than three coastal 22 resource service areas according to geographic, cultural, economic, environmental, or 23 other features relevant to coastal management planning. However ,  24  (1) each coastal resource service area formed by dividing an existing 25 regional educational attendance area must contain at least one first class city or home 26 rule city; 27  (2) a city within a coastal resource service area formed by dividing an 28 existing regional educational attendance area may not elect to exclude itself from the 29 coastal resource service area; and 30  (3) a coastal resource service area formed before June 1, 1980, may not 31 be divided for coastal management planning purposes. 01 * Sec. 83. AS 46.40.140(c) is amended to read: 02  (c) The commissioner of  commerce and rural development  [COMMUNITY 03 AND REGIONAL AFFAIRS], after consultation with residents of a coastal resource 04 service area, may divide a service area into sections only for the purpose of 05 nominating and electing board members. Division of a service area into sections for 06 the purpose of nomination and election shall be in accordance with the provisions of 07 AS 14.08.051(a). Division may be proposed in the petition submitted under 08 AS 46.40.130(a)(1), in the resolution submitted under AS 46.40.130(a)(2), at the 09 direction of the council under AS 46.40.130(a)(3), or may be proposed at any time by 10 the members of the coastal resource service area board. If proposed by the board, the 11 division of the service area into sections is subject to approval of a majority of the 12 qualified voters voting on the question in the coastal resource service area at the next 13 regular election or at a special election called for that purpose and, if approved, takes 14 effect at the next regular election of members of the coastal resource service area 15 board. 16 * Sec. 84. AS 46.40.170(a) is amended to read: 17  (a) If residents of a coastal resource service area reject organization of the 18 service area at an election called for the purpose and the council finds, after public 19 hearing, that major economic development activity has occurred or will occur within 20 the service area, the council may direct the Department of  Commerce and Rural 21 Development  [COMMUNITY AND REGIONAL AFFAIRS] to prepare and 22 recommend for consideration by the council and for submission to the legislature a 23 district coastal management program for the service area. 24 * Sec. 85. AS 46.40.170(b) is amended to read: 25  (b) At the request of the council, the Department of  Commerce and Rural 26 Development  [COMMUNITY AND REGIONAL AFFAIRS] shall complete the 27 district coastal management program in accordance with this chapter and the guidelines 28 and standards adopted by the council for a coastal resource service area  that  [WHICH] 29 has been organized but  that  [WHICH] has failed to make substantial progress in the 30 preparation of an approvable district coastal management program within 18 months 31 of certification of the results of an organization election or  that  [WHICH] has not 01 submitted for approval to the council a program within 30 months of certification of 02 the results of its organization election. Preparation of the program shall be conducted 03 in consultation with the coastal resource service area and shall, to the maximum extent 04 consistent with this chapter, reflect the expressed concerns of the residents of the 05 service area. 06 * Sec. 86. AS 46.40.180(a) is amended to read: 07  (a) Before adoption by a coastal resource service area board, or by the 08 Department of  Commerce and Rural Development  [COMMUNITY AND 09 REGIONAL AFFAIRS] under AS 46.40.170, a district coastal management program 10 shall be submitted for review to each city or village within the coastal resource service 11 area. The council of a city or traditional village council shall consider the program 12 submitted for review. Within 60 days of submission, the council of a city or 13 traditional village council shall either approve the program or enter objections to all 14 or any portion of the program. 15 * Sec. 87. AS 46.40.180(d) is amended to read: 16  (d) For purposes of this section, "village" means an unincorporated community 17 where at least 25 persons reside as a social unit as determined by the Department of 18  Commerce and Rural Development  [COMMUNITY AND REGIONAL AFFAIRS]. 19 * Sec. 88. AS 46.40.190(a) is amended to read: 20  (a) A city within the coastal area  that  [WHICH] is not part of a coastal 21 resource service area shall be included for purposes of this chapter within an adjacent 22 coastal resource service area unless its governing body, by resolution adopted by a 23 majority of its membership, chooses to exclude the city from an adjacent coastal 24 resource service area and a copy of the resolution is filed with the commissioner of 25  commerce and rural development  [COMMUNITY AND REGIONAL AFFAIRS]. 26 * Sec. 89. AS 46.40.210(2) is amended to read: 27  (2) "coastal resource district" means each of the following  that  28 [WHICH] contains a portion of the coastal area of the state: 29  (A) unified municipalities; 30  (B) organized boroughs of any class  that  [WHICH] exercise 31 planning and zoning authority; 01  (C) home rule and first class cities of the unorganized borough 02 or within boroughs  that  [WHICH] do not exercise planning and zoning 03 authority; 04  (D) second class cities of the unorganized borough, or within 05 boroughs  that  [WHICH] do not exercise planning and zoning authority,  that  06 [WHICH] have established a planning commission, and  that  [WHICH], in the 07 opinion of the commissioner of  commerce and rural development  08 [COMMUNITY AND REGIONAL AFFAIRS], have the capability of preparing 09 and implementing a comprehensive district coastal management program under 10 AS 46.40.030; 11  (E) coastal resource service areas established and organized 12 under AS 29.03.020 and AS 46.40.110 - 46.40.180; 13 * Sec. 90. AS 46.40.210(5) is amended to read: 14  (5) "department" means the Department of  Commerce and Rural 15 Development  [COMMUNITY AND REGIONAL AFFAIRS]; 16 * Sec. 91. AS 47.05.030(a) is amended to read: 17  (a) Except as provided in (b) of this section and for purposes directly 18 connected with the administration of general assistance, adult public assistance, the day 19 care assistance program authorized under  AS 44.29.300 - 44.29.339  [AS 44.47.250 - 20 44.47.310], or the Alaska temporary assistance program, and in accordance with the 21 regulations of the department, a person may not solicit, disclose, receive, make use of, 22 or authorize, knowingly permit, participate in, or acquiesce in the use of, a list of or 23 names of, or information concerning, persons applying for or receiving the assistance 24 directly or indirectly derived from the records, papers, files, or communications of the 25 department or subdivisions or agencies of the department, or acquired in the course of 26 the performance of official duties. 27 * Sec. 92. AS 47.18.010(c) is amended to read: 28  (c) The Department of Education, the Department of  Commerce and Rural 29 Development  [COMMUNITY AND REGIONAL AFFAIRS], and the Department of 30 Labor shall assist the department in developing the plan required under (a) of this 31 section. In addition, through appropriate means, the department shall solicit advice 01 from teens, parents, educators, school administrators, taxpayers, civic groups, 02 community organizations, Native organizations, officials of local governments, 03 religious institutions, and other concerned persons about how state programs can be 04 coordinated and operated in a manner that will enhance their effectiveness and 05 efficiency in addressing the many needs associated with adolescent parenting, the 06 prevention of adolescent pregnancies, and the provision of adolescent peer counseling. 07 * Sec. 93. AS 47.27.060 is amended to read: 08  Sec. 47.27.060. Job development. The department may establish cooperative 09 agreements with the Department of Labor, [DEPARTMENT OF COMMUNITY AND 10 REGIONAL AFFAIRS,] Department of Education, and Department of Commerce 11 [COMMUNITY] and  Rural  [ECONOMIC] Development, and with other public or 12 private sector organizations for the purpose of developing job, training, and educational 13 opportunities for families eligible for assistance under this chapter. 14 * Sec. 94. AS 47.27.900(2) is amended to read: 15  (2) "child care assistance" means payments made by the Department 16 of Health and Social Services [OR THE DEPARTMENT OF COMMUNITY AND 17 REGIONAL AFFAIRS] to Alaska temporary assistance program participant families 18 or to providers for the care of children of the participant families; 19 * Sec. 95. AS 47.80.090 is amended to read: 20  Sec. 47.80.090. Responsibilities. The council shall 21  (1) serve as a forum by which issues and benefits regarding current and 22 potential services to disabled and gifted persons may be discussed by consumer, public, 23 private, professional, and lay interests; 24  (2) advocate the needs of disabled and gifted persons before the 25 executive and legislative branches of the state government and before the public; 26  (3) advise the executive and legislative branches of the state 27 government and the private sector on programs and policies pertaining to current and 28 potential services to disabled or gifted persons and their families; 29  (4) submit periodic reports to the commissioner of health and social 30 services, the commissioner of education, and to other appropriate departments, on the 31 effects of current federal and state programs regarding services to disabled or gifted 01 persons; these reports must include program performance reports to the governor, the 02 federal government, and to state agencies as required under 20 U.S.C. 1482 and 42 03 U.S.C. 6024; 04  (5) in conjunction with the Departments of Health and Social Services 05 and Education, develop, prepare, adopt, periodically review, and revise as necessary 06 an annual state plan prescribing programs that meet the needs of persons with 07 developmental disabilities as required under 42 U.S.C. 6022; 08  (6) review and comment to commissioners of state departments on all 09 state plans and proposed regulations relating to programs for persons who are 10 experiencing disabilities before the adoption of a plan or regulation; for this purpose, 11 the appropriate departments shall submit the plans and proposed regulations to the 12 council; 13  (7) recommend the priorities and specifications for the use of funds 14 received by the state under 20 U.S.C. 1471 - 1485 and 42 U.S.C. 6000 - 6083; 15  (8) submit annually to the commissioner of health and social services, 16 the commissioner of education, and the commissioner of  commerce and rural 17 development  [COMMUNITY AND REGIONAL AFFAIRS] a proposed 18 interdepartmental program budget for services to disabled or gifted persons that 19 includes, insofar as possible, projected revenues and expenditures for programs 20 implemented by state agencies, local governmental agencies, and private organizations; 21 the interdepartmental program budget is an informational supplement to the regular 22 annual budgetary submissions of the departments to the Office of the Governor; 23  (9) provide information and guidance for the development of 24 appropriate special educational programs and services for exceptional children as 25 defined in AS 14.30.350; 26  (10) monitor and evaluate budgets or other implementation plans and 27 programs for disabled and gifted persons to assure nonduplication of services and 28 encourage efficient and coordinated use of federal, state, and private resources in the 29 provision of services; members of the council, with the approval of the council, have 30 access to information in the possession of state agencies subject to disclosure 31 restrictions imposed by state or federal confidentiality or privacy laws; 01  (11) perform other duties required under applicable federal laws or 02 AS 14.30.231 and as the governor may assign; [AND] 03  (12) govern the special education service agency and may hire 04 personnel necessary to operate the agency ; and  [.] 05  (13) provide to the Alaska Mental Health Trust Authority for its review 06 and consideration recommendations concerning the integrated comprehensive mental 07 health program for the people of the state who are described in AS 47.30.056(b)(2) and 08 the use of the money in the mental health trust income account in a manner consistent 09 with regulations adopted under AS 47.30.031. 10 * Sec. 96. AS 47.90.040 is amended to read: 11  Sec. 47.90.040. Consultation and coordination. The commissioner shall 12 consult and cooperate with the Department of Health and Social Services; the 13 Department of Education, including the division of vocational rehabilitation; the 14 University of Alaska, community colleges ,  and other colleges as appropriate; [THE 15 DEPARTMENT OF LABOR, INCLUDING THE DIVISION OF EMPLOYMENT 16 SECURITY;] and other persons or agencies that the commissioner considers 17 appropriate in the implementation of this chapter. 18 * Sec. 97. AS 47.90.070(1) is amended to read: 19  (1) "commissioner" means the commissioner of  labor  [COMMUNITY 20 AND REGIONAL AFFAIRS]; 21 * Sec. 98. REPEALER. AS 39.25.120(c)(21); AS 44.17.005(17); AS 44.33.240, 44.33.242, 22 44.33.245, 44.33.255, 44.33.260, 44.33.270, 44.33.272, 44.33.275, 44.33.800; and AS 44.47 23 are repealed. 24 * Sec. 99. REPEALER. AS 44.33.895, added by sec. 74 of this Act, is repealed July 1, 25 2000. 26 * Sec. 100. TRANSITIONAL PROVISIONS. (a) Litigation, hearings, investigations, and 27 other proceedings pending under a law repealed or amended by this Act, or in connection with 28 functions transferred by this Act, continue in effect and may be completed notwithstanding 29 a transfer or repeal provided for in this Act. 30 (b) Regulations in effect on June 30, 1998, that were adopted to implement a function 31 that is transferred by this Act remain in effect and shall be enforced by the agency to which 01 the function is transferred under this Act until amended by the agency to which the function 02 is transferred. 03 (c) Wherever in Alaska Statutes affected by this Act there is a reference to regulations 04 adopted under a section of law and there are no regulations adopted under that section because 05 previous regulations adopted under another section are being enforced under (b) of this 06 section, the reference shall be construed to refer to the previously adopted regulations until 07 they are amended by the new agency. 08 (d) Contracts, rights, liabilities, and obligations created by or under a law repealed or 09 amended by this Act, and in effect on June 30, 1998, remain in effect notwithstanding this 10 Act's taking effect. 11 (e) Records, equipment, appropriations, and other property of an agency of the state 12 whose functions are transferred under this Act shall be transferred to implement the provisions 13 of this Act. 14 * Sec. 101. DIVISION OF TOURISM CONVERTED TO OFFICE. The duties of the 15 division of tourism, Department of Commerce and Economic Development, and the duties of 16 the director of that division, are transferred, respectively, to the office of tourism, in the 17 Department of Commerce and Rural Development, and to the manager of that office. This 18 section applies to duties existing on June 30, 1998, and to duties that are created after 19 June 30, 1998, under legislation passed during the Twentieth Alaska State Legislature that 20 becomes law. 21 * Sec. 102. REVISOR'S INSTRUCTION. (a) Wherever in the Alaska Statutes and the 22 Alaska Administrative Code the terms "Department of Commerce and Economic 23 Development" and "commissioner of commerce and economic development" are used, they 24 shall be read, respectively, as "Department of Commerce and Rural Development" and 25 "commissioner of commerce and rural development" when to do so would be consistent with 26 the changes made by this Act. 27 (b) Wherever in the Alaska Statutes and the Alaska Administrative Code the terms 28 "division of tourism" and "director of tourism" are used, they shall be read, respectively, as 29 "office of tourism" and "manager of tourism" when to do so would be consistent with sec. 101 30 of this Act. 31 (c) Wherever in the Alaska Statutes and the Alaska Administrative Code the terms 01 "division of international trade" and "director of international trade" are used, they shall be 02 read, respectively, as "office of international trade" and "manager of international trade" when 03 to do so would be consistent with secs. 63 and 98 of this Act. 04 (d) Under AS 01.05.031, the revisor of statutes shall implement this section in the 05 statutes and, under AS 44.62.125(b)(6), the regulations attorney shall implement this section 06 in the administrative code. 07 * Sec. 103. This Act takes effect July 1, 1998.