HB 405: "An Act establishing and relating to the Alaska Information Network Corporation; relating to the Telecommunications Information Council; and relating to the state's information industry; and providing for an effective date."

00HOUSE BILL NO. 405 01 "An Act establishing and relating to the Alaska Information Network Corporation; 02 relating to the Telecommunications Information Council; and relating to the state's 03 information industry; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 44.21 is amended by adding new sections to read: 06 ARTICLE 9. ALASKA INFORMATION NETWORK CORPORATION. 07  Sec. 44.21.600. CREATION OF CORPORATION. The Alaska Information 08 Network Corporation is created in the Department of Administration. The corporation 09 is a public corporation and an instrumentality of the state. The corporation is placed 10 within the Department of Administration for administrative purposes only and has a 11 separate and independent legal existence. 12  Sec. 44.21.610. DUTIES AND POWERS OF THE CORPORATION. (a) The 13 corporation shall 14  (1) design, establish, operate, and maintain a state information network

01 that enables 02  (A) the public and governmental entities, including schools and 03 libraries, to access the electronic public records of a state agency that the state 04 agency makes available to the corporation; and 05  (B) local government information providers, federal government 06 information providers, and private information providers to attach to the state 07 information network so that users of the state information network can access 08 the information provided by the local government, federal government, and 09 private information providers; 10  (2) provide universal, affordable access for all citizens of the state to 11 the state information network; 12  (3) protect the individual privacy of citizens when performing its other 13 duties under this subsection; 14  (4) to the extent feasible, operate in a self-sufficient manner; 15  (5) to the extent feasible, enable public and governmental entities using 16 the network to accomplish their duties in a more cost-effective and efficient manner; 17  (6) promote the development of private information services and 18 systems for the state information network; and 19  (7) encourage public and private efforts to develop information 20 networks and other information resources. 21  (b) The corporation may perform all acts necessary, convenient, or desirable 22 to carry out the powers and duties expressly granted or necessarily implied in 23 AS 44.21.600 - 44.21.695, including 24  (1) selling, leasing, renting, holding, maintaining, using, and operating 25 real and personal property; 26  (2) entering into contracts, including contracts with private persons, 27 contracts for professional advice and technical assistance, and contracts with private 28 information providers for the corporation to manage the access by state information 29 network users to the information services of the private information providers; 30  (3) applying for, receiving by purchase or gift, holding, administering, 31 complying with the conditions of, and disposing of patents, copyrights, inventions,

01 discoveries, and similar rights; 02  (4) stimulating and promoting cooperative ventures and research 03 projects; 04  (5) receiving, administering, and complying with the conditions of an 05 appropriation, a gift, a grant, or a donation of property, including money; 06  (6) suing and being sued; 07  (7) adopting a corporate seal; and 08  (8) adopting bylaws for the regulation of its affairs and the conduct of 09 its business and adopting policies in connection with the performance of its functions 10 and duties. 11  (c) The corporation shall carry out its duties and powers in a manner that is 12 consistent with the functions, telecommunications development authority, and 13 information development authority of the state agencies that are responsible for 14  (1) establishing standards, policies, and procedures for developing and 15 operating information networks; and 16  (2) establishing, operating, and managing information networks and 17 communications infrastructure. 18  Sec. 44.21.615. MANAGEMENT OF CORPORATION. (a) A board of 19 directors shall manage the corporation. 20  (b) The board of directors consists of seven voting members who are 21  (1) four public members appointed for staggered terms by the governor; 22 the public members must represent a broad and balanced cross section of education, 23 business, and other disciplines and professions relevant to the corporation, including 24 information technology, telecommunications, finance, commerce and trade, and library 25 and information science; 26  (2) the commissioner of administration; 27  (3) the president of the University of Alaska; and 28  (4) the director or other person having authority over state libraries. 29  (c) The board shall elect from its members a chair and other officers that it 30 determines are necessary for the board. 31  (d) The members of the board serve without compensation, but the members

01 appointed under (b)(1) of this section are entitled to the per diem and travel expenses 02 authorized for boards and commissions under AS 39.20.180 when carrying out their 03 duties under AS 44.21.600 - 44.21.695. 04  Sec. 44.21.620. EMPLOYMENT OF PERSONNEL. (a) The corporation shall 05 employ an executive director, who may not be a member of the board but who shall 06 be appointed by the board. The executive director serves at the pleasure of the board. 07  (b) The board may appoint other officers for the corporation. 08  (c) The executive director may hire employees for the corporation and, subject 09 to the approval of the board, contract for the services of professional and technical 10 advisors. 11  (d) The board shall prescribe the duties and compensation of corporation 12 personnel, including the executive director. The salary of the executive director may 13 not exceed the salary established for the deputy head of a principal executive 14 department under AS 39.20.080(b). 15  Sec. 44.21.625. EXEMPTION FROM PERSONNEL ACT. The employees of 16 the corporation, including the executive director and other officers of the corporation, 17 are exempt from AS 39.25. 18  Sec. 44.21.630. PATENTS, COPYRIGHTS, AND OTHER RIGHTS. A 19 patent, copyright, invention, discovery, or other similar right arising from the activities 20 of the corporation belongs to the corporation and is subject to the policies and 21 procedures adopted by the board by regulation. 22  Sec. 44.21.635. FEES. (a) Except as provided in (b) and (c) of this section, 23 the corporation may establish fees for access to and use of the state information 24 network and for other services provided by the corporation. The fees must be 25 consistent with AS 09.25.110 - 09.25.220. 26  (b) The fees for access to and use of the electronic public records of a state 27 agency may be established by the state agency providing the public records. 28  (c) The amount of the fees established under this section by the corporation 29 or another state agency is subject to review by the Telecommunications Information 30 Council for reasonableness and consistency with AS 09.25.110 - 09.25.220. If the 31 Telecommunications Information Council determines that a fee is unreasonably high,

01 the Telecommunications Information Council shall report its determination to the state 02 agency that established the fee and may direct the state agency to reduce or cancel the 03 fee. 04  Sec. 44.21.640. DURATION OF ACCESS. The period of time during which 05 a state agency or other information provider is to provide the corporation with access 06 to the electronic public records of the state agency or the electronic information of the 07 information provider shall be established by agreement between the corporation and 08 the information provider. 09  Sec. 44.21.645. ALASKA INFORMATION NETWORK FUND. The Alaska 10 Information Network Fund is established. The fund consists of money appropriated 11 to the fund and gifts or grants made to the corporation. The corporation may spend 12 the assets of the fund to carry out the powers and duties of the corporation. 13  Sec. 44.21.650. ADVISORY COUNCILS. (a) The board may establish one 14 or more advisory councils to serve from time to time to provide the corporation with 15 advice on issues identified by the corporation relating to the power and duties of the 16 corporation under AS 44.21.610. The corporation shall select the members of an 17 advisory council from the public sector, the information industry operating in the 18 private sector, or both. 19  (b) The members of an advisory council shall appoint a chair for the advisory 20 council. 21  (c) Members of an advisory council serve without compensation, but the 22 corporation shall reimburse them for the actual and necessary expenses they incur in 23 carrying out their duties as members of the advisory council. 24  Sec. 44.21.655. EFFECT ON EXISTING OBLIGATIONS. Placement of the 25 information of a state agency on the state information network does not relieve the 26 agency of the responsibility to provide public records to the public under AS 09.25.110 27 - 09.25.220 or to provide information to the state library distribution and data access 28 center under AS 14.56.090 - 14.56.180. 29  Sec. 44.21.660. REGULATIONS. The corporation may adopt regulations to 30 implement AS 44.21.600 - 44.21.695. Regulations adopted by the corporation under 31 this or another section of AS 44.21.600 - 44.21.695 shall be adopted under AS 44.62

01 (Administrative Procedure Act). 02  Sec. 44.21.665. ANNUAL REPORT. The corporation shall submit a complete 03 and detailed report of its activities to the governor and the legislature each year at least 04 20 days before the convening of the regular legislative session. 05  Sec. 44.21.670. PARTICIPATION BY STATE AGENCIES. A state agency 06 may provide its electronic public records to the corporation for the state information 07 network but is not required to do so. 08  Sec. 44.21.675. PARTICIPATION BY JUDICIAL BRANCH. The judicial 09 branch may participate in the state information network if the judicial branch consents 10 to the participation. 11  Sec. 44.21.680. UNIVERSITY ASSISTANCE. The University of Alaska 12 Anchorage shall provide, to the extent feasible, research and development support to 13 the corporation. 14  Sec. 44.21.695. DEFINITIONS. In AS 44.21.600 - 44.21.695, 15  (1) "board" means the board of directors established under 16 AS 44.62.615 for the corporation; 17  (2) "corporation" means the Alaska Information Network Corporation 18 established under AS 44.62.600; 19  (3) "electronic public records" means public records that are held by 20 a state agency in electronic form and that are open to inspection by the public under 21 AS 09.25.110 - 09.25.220; 22  (4) "information industry" means an industry designed to derive 23 economic benefit or to improve the public good through the brokerage, creation, 24 transmission, reception, or processing of information; 25  (5) "information network" means a system of human resources and 26 telecommunications and information processing hardware and software that enables 27 persons with terminals, microcomputers, or other systems to access electronic 28 information systems; 29  (6) "public records" has the meaning given in AS 09.25.220; 30  (7) "state agency" means a department, institution, board, commission, 31 division, authority, public corporation, council, committee, or other instrumentality of

01 the executive or legislative branch of state government, or, if the judicial branch elects 02 to participate under AS 44.21.675, of the judicial branch; "public agency" includes the 03 University of Alaska and the Alaska Railroad Corporation; 04  (8) "state information network" means the information network 05 established by the corporation under AS 44.21.600 - 44.21.695; 06  (9) "Telecommunications Information Council" means the 07 Telecommunications Information Council established by AS 44.19.502. 08 * Sec. 2. AS 09.25.115(g) is amended to read: 09  (g) Except as provided by AS 44.21.635, each [EACH] public agency shall 10 establish the fees for the electronic services and products provided under this section. 11 Except as provided by AS 44.21.635, the [THE] Telecommunications Information 12 Council may direct a public agency to reduce or cancel a fee [THE FEES] 13 established by the [A] public agency in the executive branch, except the fees of the 14 University of Alaska and the Alaska Railroad Corporation, if the council determines 15 that the fees are unreasonably high. 16 * Sec. 3. AS 09.25.220(5) is amended to read: 17  (5) "public agency" means a political subdivision, department, 18 institution, board, commission, division, authority, public corporation, council, 19 committee, or other instrumentality of the state or a municipality; "public agency" 20 includes the University of Alaska, the Alaska Information Network Corporation, 21 and the Alaska Railroad Corporation; 22 * Sec. 4. AS 39.25.110 is amended by adding a new paragraph to read: 23  (30) employees of the Alaska Information Network Corporation, 24 including the executive officer and other officers. 25 * Sec. 5. AS 44.19.504(d) is amended to read: 26  (d) This section does not prohibit a state agency from developing information 27 systems that are inconsistent with the guidelines established in (a) of this section if the 28 development is authorized by AS 44.21.600 - 44.21.695 or if the council gives 29 written authorization for the user agency to engage in the independent design, 30 development, management, or operation. The council may authorize independent 31 development only upon a showing of necessity. A description of authorization under

01 this subsection shall be included in the annual report required under this section. 02 Written authorization under this subsection is not required for intra-agency use of 03 microcomputers. 04 * Sec. 6. AS 44.19.504 is amended by adding a new subsection to read: 05  (f) Notwithstanding the other provisions of this section, the council may not 06 engage in the duties that are to be performed by the Alaska Information Network 07 Corporation under AS 44.21.610(a). The council shall coordinate the performance of 08 the council's powers and duties under this section with the performance of the Alaska 09 Information Network Corporation's duties under AS 44.21.600 - 44.21.695. 10 * Sec. 7. AS 44.21.670 is repealed and reenacted to read: 11  Sec. 44.21.670. PARTICIPATION BY STATE AGENCIES. A state agency 12 may provide its electronic public records to the corporation for the state information 13 network. A state agency shall provide its electronic public records to the corporation 14 for the state information network if the telecommunications information council 15 requires the state agency to do so after determining that the records would benefit the 16 public or other governmental entities and that providing the records would not be 17 unduly burdensome to the state agency. 18 * Sec. 8. AS 44.66.010(a) is amended by adding a new paragraph to read: 19  (20) Alaska Information Network Corporation (AS 44.21.600) -- 20 June 30 five years after the effective date of this Act. 21 * Sec. 9. AS 44.99.100 is amended to read: 22  Sec. 44.99.100. DECLARATION OF STATE ECONOMIC DEVELOPMENT 23 POLICY. (a) To further the goals of a sound economy, stable employment, and a 24 desirable quality of life, the legislature declares that the state has a commitment to 25 foster the economy of Alaska through purposeful development of the state's abundant 26 natural resources and productive capacity. It is the legislature's intent that this 27 development 28  (1) offer long-term benefits and increased employment to Alaskans by 29 strengthening and diversifying the state's economic base and encouraging new 30 activities, including development of the information industry; 31  (2) provide opportunities for increased personal income or reduced

01 living costs by creating activity in economic sectors, including the information 02 industry sector; 03  (3) have a positive effect on the revenue needs and fiscal conditions of 04 the state and local communities; 05  (4) be undertaken after consideration of the social and economic views 06 of citizens impacted by the development, and only after adequate protection is assured 07 for Alaska's environment. 08  (b) To take advantage of investment opportunities afforded by Alaska's 09 abundant natural resources and productive capacity, the legislature finds that the state 10 should undertake activities that serve as a catalyst to responsible economic 11 development in the state for the benefit of its citizens. It is the policy of the state to 12  (1) develop and provide information to domestic and foreign investors 13 to use in evaluating project feasibility; 14  (2) with cooperation from investors, identify constraints to orderly and 15 beneficial economic development and work with government agencies to eliminate 16 unnecessary impediments to economic development; 17  (3) with cooperation from investors, identify constraints to economic 18 development that would impede the extraction, production, and transport of resources 19 to markets and manufactured products, and implement capital improvement or other 20 programs to resolve the deficiencies; 21  (4) provide a stable tax and regulatory climate that encourages 22 expansion of the state's economic base; 23  (5) encourage "value-added" processing in the state; 24  (6) improve the state's domestic and international competitive position 25 by offering economic incentives that support the constitutional mandates for utilization, 26 development and conservation of natural resources; 27  (7) develop the information industry of the state. 28 * Sec. 10. AS 44.99.100 is amended by adding a new subsection to read: 29  (c) In order to develop the information industry of the state, it is the policy of 30 the state to 31  (1) encourage the continued development and expansion of the

01 telecommunications infrastructure in the state in order to accommodate future growth 02 in the information industry; 03  (2) facilitate the development of new information industry business 04 ventures in order to provide increased employment opportunities for the residents of 05 the state; 06  (3) encourage the development of information services, including 07 financial data processing, products and services exchanges, telemarketing, and 08 teleconferencing; 09  (4) encourage the development of small businesses, including home and 10 cottage industry businesses, in the information field, including software development, 11 information systems and peripherals development, data conversion, data entry, and 12 computer programming services; 13  (5) encourage the development of educational and training opportunities 14 in the information industry in order to provide for upward mobility within the 15 information industry; 16  (6) encourage research activities, including legal research, in the 17 information industry; 18  (7) encourage greater cooperation between the public and private 19 sectors of the state to develop and maintain a well designed information industry; 20  (8) ensure that the development of new businesses in the information 21 industry is consistent with the social, economic, and physical needs and aspirations of 22 the state's residents; 23  (9) foster a recognition of the contribution of the information industry 24 to the state's economy; 25  (10) assist in the promotion of the state as a broker, creator, and 26 processor of information in the North Pacific area; 27  (11) establish a statewide information network that will serve as the 28 catalyst for establishing a viable information industry in the state; and 29  (12) support promotional activities to market the state's information 30 industry services. 31 * Sec. 11. TRANSITIONAL PROVISIONS. (a) For the purposes of the governor's

01 appointing the initial members of the board of directors of the Alaska Information Network 02 Corporation, established under sec. 1 of this Act, the board is considered a four-member board 03 under AS 39.05.055(2). 04 (b) The commissioner of administration shall serve as the chair of the board of 05 directors of the Alaska Information Network Corporation, established under sec. 1 of this Act, 06 until the board elects a chair from its members. 07 (c) The commissioner of administration and the board of directors of the Alaska 08 Information Network Corporation shall develop a plan for implementing the state electronic 09 information network required by AS 44.21.600 - 44.21.695, enacted by sec. 1 of this Act, and 10 shall report this plan to the legislature by March 15, 1995. The report must include 11 (1) the costs of designing, establishing, operating, and maintaining the 12 information network; 13 (2) an assessment of the demand and economic market for the state's public 14 records in selected subject areas; and 15 (3) other relevant issues identified by the commissioner and the board. 16 (d) The first annual report required by AS 44.21.665 shall be submitted by the Alaska 17 Information Network Corporation by 20 days before the convening of the second regular 18 session of the Nineteenth Alaska State Legislature. 19 * Sec. 12. Section 7 of this Act takes effect three years after the effective date of sec. 1 20 of this Act.