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HB 409: "An Act combining parts of the Department of Commerce and Economic Development and parts of the Department of Community and Regional Affairs by transferring some of their duties to a new Department of Community and Economic Development; transferring some of the duties of the Department of Commerce and Economic Development and the Department of Community and Regional Affairs to other existing agencies; eliminating the Department of Commerce and Economic Development and the Department of Community and Regional Affairs; adjusting the membership of certain multi-member bodies to reflect the transfer of duties among departments and the elimination of departments; and providing for an effective date."

00HOUSE BILL NO. 409 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 Community and 04 Economic Development; transferring some of the duties of the Department of 05 Commerce and Economic Development and the Department of Community and 06 Regional Affairs to other existing agencies; eliminating the Department of 07 Commerce and Economic Development and the Department of Community and 08 Regional Affairs; adjusting the membership of certain multi-member bodies to 09 reflect the transfer of duties among departments and the elimination of 10 departments; and providing for an effective date." 11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 12 * Section 1. AS 05.05.010(a) is amended to read: 13  (a) There is created an athletic commission within the Department of Labor 14 [COMMERCE AND ECONOMIC DEVELOPMENT]. The commission consists of

01 four members appointed by the governor. One member of the commission shall be 02 appointed from each of the four judicial districts. The commissioners shall be 03 appointed for overlapping four-year terms. Members of the commission serve at the 04 pleasure of the governor and shall be selected on the basis of their known interest in 05 and knowledge of athletics in the state. 06 * Sec. 2. AS 05.35.070(1) is amended to read: 07  (1) "commissioner" means the commissioner of community 08 [COMMERCE] and economic development; 09 * Sec. 3. AS 05.35.150 is amended to read: 10  Sec. 05.35.150. ALASKA AMATEUR SPORTS FUND. There is established 11 as a separate fund in the Department of Community [COMMERCE] and Economic 12 Development the Alaska amateur sports fund. The fund consists of private 13 contributions and money appropriated to the fund from receipts under AS 28.10.421(f). 14 Money in the fund may be appropriated for the promotion and development of amateur 15 sports. 16 * Sec. 4. AS 06.01.050(1) is amended to read: 17  (1) "commissioner" means the commissioner of revenue [COMMERCE 18 AND ECONOMIC DEVELOPMENT] or a designee of the commissioner; 19 * Sec. 5. AS 06.01.050(2) is amended to read: 20  (2) "department" means the Department of Revenue [COMMERCE 21 AND ECONOMIC DEVELOPMENT]; 22 * Sec. 6. AS 06.05.540(7) is amended to read: 23  (7) "commissioner" means the commissioner of revenue [COMMERCE 24 AND ECONOMIC DEVELOPMENT] or a designee of the commissioner; 25 * Sec. 7. AS 06.05.540(9) is amended to read: 26  (9) "department" means the Department of Revenue [COMMERCE 27 AND ECONOMIC DEVELOPMENT]; 28 * Sec. 8. AS 06.10.030 is amended to read: 29  Sec. 06.10.030. FILING STATEMENT. Before engaging in this state in any 30 of the activities specified in AS 06.10.020, a foreign bank shall execute and file with 31 the commissioner of revenue [COMMERCE AND ECONOMIC DEVELOPMENT]

01 a statement. The statement shall list its name, state of incorporation or organization 02 and principal place of business and shall appoint irrevocably the commissioner of 03 revenue [COMMERCE AND ECONOMIC DEVELOPMENT] and the commissioner's 04 successors its agents upon whom may be served process against it in any proceeding 05 or cause of action arising out of its engaging in this state in any of the activities 06 referred to in AS 06.10.020. Until the statement is filed the immunities provided by 07 this chapter do not become operative, but failure to file the statement has no other 08 effect. 09 * Sec. 9. AS 06.15.010 is amended to read: 10  Sec. 06.15.010. DECLARATION OF POLICY. In providing authority for the 11 establishment of mutual savings banks it is the intent of the legislature to make 12 available the benefits of mutual savings banking, thereby encouraging the practice of 13 thrift and promoting the accumulation of funds for investment to develop the economy. 14 For the accomplishment of these purposes, the legislature intends by this chapter to 15 vest in mutual banks those powers generally possessed by state-chartered mutual 16 savings banks and to grant authority to the Department of Revenue [COMMERCE 17 AND ECONOMIC DEVELOPMENT] to define powers and to adopt regulations 18 designed to enable mutual savings banks to perform their functions and to carry out 19 the above purposes, subject to the provisions of AS 06.05 (Alaska Banking Code) that 20 are not inconsistent with this chapter. 21 * Sec. 10. AS 06.15.370(2) is amended to read: 22  (2) "department" means the Department of Revenue [COMMERCE 23 AND ECONOMIC DEVELOPMENT]; 24 * Sec. 11. AS 06.20.900(1) is amended to read: 25  (1) "commissioner" means the commissioner of revenue [COMMERCE 26 AND ECONOMIC DEVELOPMENT] or a designee of the commissioner; 27 * Sec. 12. AS 06.20.900(2) is amended to read: 28  (2) "department" means the Department of Revenue [COMMERCE 29 AND ECONOMIC DEVELOPMENT]; 30 * Sec. 13. AS 06.25.050(a) is amended to read: 31  (a) The existence of a trust company begins on the filing of the articles of

01 incorporation. However, a trust company may not transact any business, except that 02 which is preliminary to its organization, until it complies with the following 03 conditions: 04  (1) all of the capital stock shall be fully paid in cash, and the affidavit 05 of the president and treasurer, or the president and cashier of the trust company, setting 06 out the fact that it has been paid, subscribed, and sworn to before some person 07 authorized to administer oaths, shall be filed with the department; 08  (2) a complete and correct list of stockholders, showing the name, 09 address, and the amount of stock held by each, verified by the oath of the president 10 and treasurer or president and cashier, or by oath of any two officers of the trust 11 company, shall be filed with the department; 12  (3) a deposit of securities shall be made with the department 13 [DEPARTMENT OF REVENUE] as provided by this chapter and the regulations of 14 the department [DEPARTMENT OF COMMERCE AND ECONOMIC 15 DEVELOPMENT]; 16  (4) a certificate of authority is issued by the department to the trust 17 company, authorizing it to engage in business; 18  (5) a trust company proposing to engage in the banking business shall, 19 before commencing the banking business, acquire membership in the Federal Deposit 20 Insurance Corporation. 21 * Sec. 14. AS 06.25.200(a) is amended to read: 22  (a) A trust company may examine titles to real estate, procure and furnish 23 information in relation to the titles [THERETO], and guarantee or insure the title to 24 real estate against loss, due to defective title or other encumbrance. A trust company 25 is subject to the insurance law of the state to the extent of its title insurance activities 26 and operations, except that securities deposited by a trust company under AS 06.25.230 27 shall be credited to and included in the total of the guaranty fund of the company 28 required by the insurance law, unless demand for the full statutory amount under the 29 title insurance and the trust company laws is made by the commissioner of revenue 30 [COMMERCE AND ECONOMIC DEVELOPMENT]. 31 * Sec. 15. AS 06.25.230 is amended to read:

01  Sec. 06.25.230. DEPOSIT OF SECURITIES WITH DEPARTMENT [OF 02 REVENUE]. A trust company shall keep on deposit with the department 03 [DEPARTMENT OF REVENUE] interest or dividend bearing stocks or bonds of the 04 United States or of the State of Alaska, or of any city of this state, or such other 05 interest or dividend bearing stocks, bonds, or securities approved by the department 06 [DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT], in value 07 of 20 percent of its capital stock. The securities so deposited may not be of less value 08 than $5,000. The securities shall be registered in the name of the department 09 [DEPARTMENT OF REVENUE], in trust for the creditors of and depositors with the 10 trust company, subject to sale and transfer and to the disposal of the proceeds of the 11 securities [THEREOF], by the department [DEPARTMENT OF REVENUE], only 12 on the order of a court of competent jurisdiction. The trust company, so long as it 13 continues solvent and complies with the laws of the state, may be permitted by the 14 department [DEPARTMENT OF COMMERCE AND ECONOMIC 15 DEVELOPMENT] to collect the interest and dividends on the securities and from time 16 to time exchange the securities for others of equal value. All securities before they 17 may be accepted by the department [DEPARTMENT OF REVENUE] for filing under 18 this section shall be approved by the department [DEPARTMENT OF COMMERCE 19 AND ECONOMIC DEVELOPMENT]. A trust company that is a member of the 20 Federal Deposit Insurance Corporation or whose deposits are insured in whole or in 21 part by an agency of the United States is exempt from the requirements of this section. 22 * Sec. 16. AS 06.25.350 is amended to read: 23  Sec. 06.25.350. DEFINITION [DEFINITIONS]. In this chapter, "department" 24 means the Department of Revenue [COMMERCE AND ECONOMIC 25 DEVELOPMENT]. 26 * Sec. 17. AS 06.40.190(1) is amended to read: 27  (1) "commissioner" means the commissioner of revenue [COMMERCE 28 AND ECONOMIC DEVELOPMENT] or a designee of the commissioner; 29 * Sec. 18. AS 06.40.190(2) is amended to read: 30  (2) "department" means the Department of Revenue [COMMERCE 31 AND ECONOMIC DEVELOPMENT];

01 * Sec. 19. AS 06.45.400(1) is amended to read: 02  (1) "commissioner" means the commissioner of revenue [COMMERCE 03 AND ECONOMIC DEVELOPMENT]; 04 * Sec. 20. AS 08.01.110(2) is amended to read: 05  (2) "commissioner" means the commissioner of labor [COMMERCE 06 AND ECONOMIC DEVELOPMENT]; 07 * Sec. 21. AS 08.01.110(3) is amended to read: 08  (3) "department" means the Department of Labor [COMMERCE AND 09 ECONOMIC DEVELOPMENT]; 10 * Sec. 22. AS 08.02.011 is amended to read: 11  Sec. 08.02.011. PROFESSIONAL GEOLOGIST. The commissioner of labor 12 [COMMERCE AND ECONOMIC DEVELOPMENT] shall certify an applicant as a 13 professional geologist if the applicant is certified as a professional geologist by the 14 American Institute of Professional Geologists. 15 * Sec. 23. AS 08.02.025 is amended to read: 16  Sec. 08.02.025. COMPLIANCE WITH STUDENT LOAN REQUIREMENTS. 17 (a) A person licensed under this title shall comply with the student loan repayment 18 provisions under AS 14.43 that are applicable to the person. Notwithstanding another 19 provision of law, a license issued to a person under this title may not be renewed if 20 the borrower and the Department of Labor [COMMERCE AND ECONOMIC 21 DEVELOPMENT] have received notice from the Alaska Commission on 22 Postsecondary Education that the licensee is in default on a student loan provided to 23 the licensee. This action may be taken no sooner than 60 days after the Alaska 24 Commission on Postsecondary Education has notified the borrower of the default status 25 of the loan as provided under AS 14.43.120(i). If an appeal of a determination of 26 default status is pending on behalf of the licensee, the Alaska Commission on 27 Postsecondary Education shall notify the department and renewal may not be denied 28 under this section until and unless the appeal has been concluded and the default status 29 affirmed. Denial of renewal of a license shall continue until the Department of Labor 30 [COMMERCE AND ECONOMIC DEVELOPMENT] receives notice from the Alaska 31 Commission on Postsecondary Education that the licensee is no longer in default on

01 the student loan. 02  (b) The Department of Labor [COMMERCE AND ECONOMIC 03 DEVELOPMENT] shall provide the applicable licensing board, if any, a copy of a 04 notice received under (a) of this section. 05 * Sec. 24. AS 08.02.030(a) is amended to read: 06  (a) A board established under this title and the Department of Labor 07 [COMMERCE AND ECONOMIC DEVELOPMENT], with respect to an occupation 08 that it regulates under this title, may by regulation establish criteria for issuing a 09 temporary courtesy license to nonresidents who enter the state so that, on a temporary 10 basis, they may practice the occupation regulated by the board or the department. 11 * Sec. 25. AS 08.04.070(e) is amended to read: 12  (e) The board shall tape record all board meetings and submit the tapes to the 13 Department of Labor [COMMERCE AND ECONOMIC DEVELOPMENT] with a 14 request that they be kept on file for at least two years. 15 * Sec. 26. AS 08.04.495 is amended to read: 16  Sec. 08.04.495. FEES. The Department of Labor [COMMERCE AND 17 ECONOMIC DEVELOPMENT] shall set fees under AS 08.01.065 for examinations, 18 reexaminations, permits, licenses, certificates, and registrations. 19 * Sec. 27. AS 08.06.190(2) is amended to read: 20  (2) "department" means the Department of Labor [COMMERCE AND 21 ECONOMIC DEVELOPMENT]; 22 * Sec. 28. AS 08.11.200(3) is amended to read: 23  (3) "department" means the Department of Labor [COMMERCE AND 24 ECONOMIC DEVELOPMENT]; 25 * Sec. 29. AS 08.13.030(c) is amended to read: 26  (c) The board may 27  (1) suspend or revoke a license or permit; 28  (2) on its own motion or upon receipt of a written complaint, conduct 29 hearings and request the Department of Labor [COMMERCE AND ECONOMIC 30 DEVELOPMENT] to investigate the practices of a person, shop, or school involved 31 in the practice or teaching of barbering, hairdressing, or cosmetology;

01  (3) adopt regulations or do any act necessary to carry out the provisions 02 of this chapter. 03 * Sec. 30. AS 08.13.050 is amended to read: 04  Sec. 08.13.050. RECORDS OF THE BOARD. The Department of Labor 05 [COMMERCE AND ECONOMIC DEVELOPMENT] shall keep a record of the 06 board's proceedings related to the issuance, refusal, suspension, and revocation of each 07 license and permit. The record shall contain the name of the person to whom a license 08 or permit is issued, the person's place of business, the date of issuance for each license 09 and permit, and whether it is currently valid. The record shall be open to inspection 10 by the public at all reasonable times. The board shall submit an annual report on its 11 operations to the governor. 12 * Sec. 31. AS 08.13.185(a) is amended to read: 13  (a) The Department of Labor [COMMERCE AND ECONOMIC 14 DEVELOPMENT] shall set fees under AS 08.01.065 for initial licenses and renewals 15 for the following: 16  (1) schools; 17  (2) school owners; 18  (3) instructor; 19  (4) shop owner; 20  (5) practitioner of barbering; 21  (6) practitioner of hairdressing; 22  (7) practitioner of cosmetology; 23  (8) temporary permit; 24  (9) student permit. 25 * Sec. 32. AS 08.18.011(a) is amended to read: 26  (a) A person may not submit a bid or work as a contractor until that person 27 has been issued a certificate of registration by the Department of Labor [COMMERCE 28 AND ECONOMIC DEVELOPMENT]. A partnership or joint venture shall be 29 considered registered if one of the general partners or venturers whose name appears 30 in the name under which the partnership or venture does business is registered. 31 * Sec. 33. AS 08.18.025(b) is amended to read:

01  (b) The department shall issue a residential contractor endorsement to a person 02 who 03  (1) has a certificate of registration as a general contractor; 04  (2) passes a residential contractor examination, which shall be offered 05 by the department at least once each year in each judicial district; the examination, 06 which may be written or practical, may test competence in relation to arctic structural 07 and thermal construction techniques and other matters as determined by the department 08 in consultation with representatives of the construction industry; 09  (3) applies for an endorsement within six months after passing the 10 examination required under (2) of this subsection; 11  (4) within the two years preceding the date of application for the 12 endorsement, has satisfactorily completed either the Alaska craftsman home program 13 sponsored by the department [DEPARTMENT OF COMMUNITY AND REGIONAL 14 AFFAIRS], or its equivalent, or a postsecondary course in arctic engineering, or its 15 equivalent; 16  (5) within the seven years preceding the date of application, has not 17 been under a sentence for an offense related to forgery, theft in the first or second 18 degree, extortion, or conspiracy to defraud creditors or for a felony involving 19 dishonesty; and 20  (6) pays the appropriate fees. 21 * Sec. 34. AS 08.18.116 is amended to read: 22  Sec. 08.18.116. INVESTIGATIONS. The [EITHER THE DEPARTMENT OF 23 COMMERCE AND ECONOMIC DEVELOPMENT OR THE] Department of Labor 24 may investigate alleged or apparent violations of this chapter. The department 25 [THESE DEPARTMENTS], upon showing proper credentials, may enter, during 26 regular hours of work, a construction site where it appears that contracting work is 27 being done. The department [DEPARTMENTS] may make inquiries about the 28 identity of the contractor or the person acting in the capacity of a contractor. Upon 29 demand, a contractor or person acting in the capacity of a contractor, or that person's 30 representative, shall produce evidence of current endorsement, if applicable, and 31 registration.

01 * Sec. 35. AS 08.18.117 is amended to read: 02  Sec. 08.18.117. ISSUANCE OF CITATIONS. The [EITHER THE 03 DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT OR THE] 04 Department of Labor may issue a citation for a violation if there is probable cause to 05 believe a person has violated this chapter. Each day a violation continues after a 06 citation for the violation has been issued constitutes a separate violation. 07 * Sec. 36. AS 08.18.118(c) is amended to read: 08  (c) The [DEPARTMENT OF COMMERCE AND ECONOMIC 09 DEVELOPMENT AND THE] Department of Labor is [ARE] responsible for the 10 issuance of books containing appropriate citations, and each shall maintain a record of 11 each book issued and each citation contained in it. The [EACH] department shall 12 require and retain a receipt for every book issued to an employee of the [THAT] 13 department. 14 * Sec. 37. AS 08.18.121(f) is amended to read: 15  (f) If the [DEPARTMENT OF COMMERCE AND ECONOMIC 16 DEVELOPMENT OR THE] Department of Labor determines that a contractor or a 17 person acting in the capacity of a contractor, is in violation of this chapter, the 18 [THAT] department may give written notice to the person prohibiting further action 19 by the person as a contractor. The prohibition continues until the person has submitted 20 evidence acceptable to the [THAT] department showing that the violation has been 21 corrected. 22 * Sec. 38. AS 08.18.121(g) is amended to read: 23  (g) A person affected by an order issued under this chapter may seek equitable 24 relief preventing the [DEPARTMENT OF COMMERCE AND ECONOMIC 25 DEVELOPMENT OR THE] Department of Labor from enforcing the order. 26 * Sec. 39. AS 08.18.131 is amended to read: 27  Sec. 08.18.131. INJUNCTION. In an action instituted in the superior court by 28 the [DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT OR 29 THE] Department of Labor, the court may enjoin a person from acting in the capacity 30 of a contractor in violation of this chapter. In addition to other relief, the court may 31 impose a civil penalty of not more than $250 for each violation. Each day that an

01 unlawful act continues constitutes a separate violation. 02 * Sec. 40. AS 08.18.141(b) is amended to read: 03  (b) Criminal prosecution for a violation of this chapter does not preclude the 04 [DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT OR THE] 05 Department of Labor from seeking available civil remedies. 06 * Sec. 41. AS 08.18.171(3) is amended to read: 07  (3) "commissioner," unless the text reads otherwise, means the 08 commissioner of labor [THE DEPARTMENT OF COMMERCE AND ECONOMIC 09 DEVELOPMENT]; 10 * Sec. 42. AS 08.18.171(5) is amended to read: 11  (5) "department" means the Department of Labor [COMMERCE AND 12 ECONOMIC DEVELOPMENT], unless the context indicates otherwise; 13 * Sec. 43. AS 08.24.160 is amended to read: 14  Sec. 08.24.160. FORM OF BOND. The bond required by AS 08.24.140 and 15 08.24.150 shall be in the form substantially as follows: 16 BOND 17  Know all Men by These Presents that we, ___________, 18 as principal, and ____________ as surety, are held and firmly 19 bound to the State of Alaska, in the penal sum of 20 $____________, lawful money of the United States, for the 21 payment of which we bind ourselves, our heirs, executors, 22 administrators, successors and assigns jointly and severally. 23  The condition of this obligation is such that whereas, the 24 bonded principal, named above, has applied to the Department 25 of Labor [COMMERCE AND ECONOMIC DEVELOPMENT] 26 of the State of Alaska for a collection agency license under the 27 provisions of AS 08.24 and is required by the provisions of that 28 law to furnish a bond conditioned as herein set out. 29  Now, therefore, if ____________, within 30 days after 30 the close of each fiscal or calendar month, reports and pays to 31 customers the net proceeds due and payable of all collections

01 made during that calendar or fiscal month which exceed $20, 02 and strictly, honestly and faithfully complies with the provisions 03 of AS 08.24 and all amendments to it and regulations adopted 04 under it, then this obligation is void, otherwise to remain in full 05 force and effect. 06  This bond becomes effective on the _____ day of 07 ____________, 19_____. The surety may be relieved of future 08 liability under it by giving 60 days' written notice to the 09 principal and to the Department of Labor [COMMERCE AND 10 ECONOMIC DEVELOPMENT] of the State of Alaska. 11  This bond is one continuing obligation and the liability 12 of the surety for the aggregate of all claims which may arise 13 under it may in no event exceed the amount of the penalty set 14 out in it. 15  IN WITNESS WHEREOF we have hereunto set our 16 hands and seals at ____________, Alaska, this _____ day of 17 ____________, 19_____. 18  (SEAL) ____________ Principal 19  (SEAL) ____________ Surety. 20 * Sec. 44. AS 08.24.210 is amended to read: 21  Sec. 08.24.210. ANNUAL STATEMENT OF COLLECTION. Each collection 22 agency licensee shall, not later than January 31 of each calendar year, file with the 23 department a verified annual statement for the preceding calendar year, showing the 24 respective amounts of all customers' money collected by the licensee during the 25 preceding calendar year, that has not previously been remitted to the customers entitled 26 to it or properly accounted for, and showing also the amounts of money that the 27 licensee has on deposit in a bank or in the licensee's possession for the purpose of 28 liquidating any and all amounts due to customers. The statement must contain the 29 name and address of the bank. The annual statement shall be made substantially in 30 the following form: 31 ANNUAL STATEMENT TO DEPARTMENT OF LABOR

01 [COMMERCE AND ECONOMIC DEVELOPMENT] 02  Pursuant to AS 08.24.210 the undersigned, 03 ____________, licensed under AS 08.24 to conduct a collection 04 agency business, hereby declares that the amount of money 05 collected during the preceding calendar year by the undersigned, 06 as a licensee under AS 08.24, which has not been remitted to a 07 customer or properly accounted for is $____________; and that 08 the amount on deposit with all banks for the purpose of 09 liquidating all amounts to customers is $____________. 10  The attached schedule contains a true statement of the 11 name and address of each customer of the undersigned to whom 12 there was due or owing at the end of the preceding calendar 13 year on account of collections made during the preceding 14 calendar year the aggregate sum of $20 or more. 15  IN WITNESS WHEREOF, the undersigned has executed 16 this statement on this _____ day of ____________, 19_____. 17  (name of licensee) ____________ 18  (signature) ____________________ 19  (capacity) ____________________ 20 VERIFICATION 21 STATE OF ALASKA ss 22 THIRD DISTRICT 23  I, the undersigned, being first sworn, do on oath depose 24 and say: That I executed the within annual statement as the 25 licensee named in it or on behalf of the licensee named in it, as 26 the operator, director, or officer of the licensee named in it, as 27 indicated in it; that I have read the statement and know its 28 contents; and that the statement is true. 29  _____________________________ 30  Subscribed and sworn to before me this _____ day of 31 _____________, 19_____.

01  Notary Public in and for Alaska 02  My commission expires: 03 * Sec. 45. AS 08.24.380(3) is amended to read: 04  (3) "department" means the Department of Labor [COMMERCE AND 05 ECONOMIC DEVELOPMENT]; 06 * Sec. 46. AS 08.32.097 is amended to read: 07  Sec. 08.32.097. FEES. The Department of Labor [COMMERCE AND 08 ECONOMIC DEVELOPMENT] shall, by regulations adopted under AS 08.01.065, 09 establish fees for dental hygienists for the following: 10  (1) filing an examination and licensing application; 11  (2) examination fee; 12  (3) credential fee; 13  (4) initial license; 14  (5) registration fee; 15  (6) filing a reexamination application; 16  (7) duplicate license; 17  (8) delinquent registration. 18 * Sec. 47. AS 08.36.370(2) is amended to read: 19  (2) "department" means the Department of Labor [COMMERCE AND 20 ECONOMIC DEVELOPMENT]; 21 * Sec. 48. AS 08.40.190(b) is amended to read: 22  (b) AS 08.40.005 - 08.40.200 do not apply to a person engaged in 23  (1) the manufacture, maintenance, or repair of electrical apparatus or 24 equipment; 25  (2) electrical work, the cost of which does not exceed $5,000, involving 26 residences or small commercial establishments in communities that 27  (A) have a population of under 500 according to the latest 28 available federal or state census or other census approved by the Department 29 of Revenue [COMMUNITY AND REGIONAL AFFAIRS]; or 30  (B) are over 50 miles by air or water transportation from the 31 business place of an electrical administrator licensed under AS 08.40.010 -

01 08.40.200; 02  (3) electrical installation on residential property that is owned by the 03 installer or a member of the installer's immediate family and not intended for sale at 04 the time of making the installation; 05  (4) the operation, maintenance, or repair of a television or radio 06 broadcasting system and the installation of a radio broadcasting system under 500 07 watts input power except for A.C. power supply and wiring; 08  (5) the installation, maintenance, and repair of elevators so long as the 09 work is performed by an agent or employee of the elevator industry and is confined 10 to the elevator control system, which system does not include the power supply, 11 wiring, and motor connection; 12  (6) the operation, maintenance, and repair of telephone, telegraph, and 13 intercommunication facilities; 14  (7) the installation, maintenance, and repair of fire alarm, intrusion 15 alarm, or other low voltage signaling systems of 48 volts to ground or less; 16  (8) the maintenance or repair of diesel electric engines installed on 17 heavy construction equipment, either in a shop or on a job site; 18  (9) the installation in a commercial water well of the submersible pump 19 motor and the wiring to the well pump system controls if the controls are outside a 20 building or a structure; 21  (10) the installation in a noncommercial water well of the submersible 22 pump motor and the wiring to the well pump system controls; 23  (11) electrical 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 * Sec. 49. AS 08.40.200(2) is amended to read: 28  (2) "department" means the Department of Labor [COMMERCE AND 29 ECONOMIC DEVELOPMENT]; 30 * Sec. 50. AS 08.40.360 is amended to read: 31  Sec. 08.40.360. CEASE AND DESIST ORDER. (a) If the commissioner of

01 labor [COMMERCE AND ECONOMIC DEVELOPMENT] determines that a person 02 is acting as a mechanical administrator in violation of AS 08.40.210 - 08.40.490, the 03 commissioner may issue a cease and desist order prohibiting further action by the 04 person as a mechanical administrator. The cease and desist order remains in effect 05 until the person has submitted evidence acceptable to the commissioner showing that 06 the violation has been corrected. 07  (b) A person affected by an order issued under (a) of this section may seek 08 equitable relief preventing the commissioner of labor [COMMERCE AND 09 ECONOMIC DEVELOPMENT] from enforcing the order. 10 * Sec. 51. AS 08.40.370 is amended to read: 11  Sec. 08.40.370. INJUNCTIVE RELIEF. The commissioner of labor 12 [COMMERCE AND ECONOMIC DEVELOPMENT] may seek an injunction in the 13 superior court to enjoin a person from violating AS 08.40.210 - 08.40.490. 14 * Sec. 52. AS 08.40.390(b) is amended to read: 15  (b) AS 08.40.210 - 08.40.490 do not apply to a person engaged in 16  (1) the manufacture or repair of mechanical apparatus or equipment; 17  (2) mechanical work, the cost of which does not exceed $50,000, 18 involving residences or small commercial establishments in communities that 19  (A) have a population of under 5,000 according to the latest 20 available federal or state census or other census approved by the Department 21 of Revenue [COMMUNITY AND REGIONAL AFFAIRS]; or 22  (B) are over 50 miles by air or water transportation from the 23 business place of a mechanical administrator licensed under AS 08.40.210 - 24 08.40.490; 25  (3) mechanical installation on a single-family residence or a two-family 26 residence that is not intended for sale at the time of making the installation; 27  (4) installation of water lines or sanitary, storm, or drain sewer lines 28 more than five feet from a building; 29  (5) mechanical maintenance or repair work if the work is performed by 30 the person as an employee of an owner or tenant of commercial property as part of the 31 employee's work duties with respect to the property but is not offered or performed

01 as a service to the public; 02  (6) design, installation, maintenance, or repair of fire extinguishing 03 systems. 04 * Sec. 53. AS 08.40.490(1) is amended to read: 05  (1) "department" means the Department of Labor [COMMERCE AND 06 ECONOMIC DEVELOPMENT] except where the context otherwise requires; 07 * Sec. 54. AS 08.42.200(1) is amended to read: 08  (1) "department" means the Department of Labor [COMMERCE AND 09 ECONOMIC DEVELOPMENT]; 10 * Sec. 55. AS 08.45.020 is amended to read: 11  Sec. 08.45.020. APPLICATION FOR LICENSE. A person desiring to practice 12 naturopathy shall apply in writing to the division of occupational licensing of the 13 Department of Labor [COMMERCE AND ECONOMIC DEVELOPMENT]. 14 * Sec. 56. AS 08.45.100 is amended to read: 15  Sec. 08.45.100. REGULATIONS. The Department of Labor [COMMERCE 16 AND ECONOMIC DEVELOPMENT] shall adopt regulations to implement this 17 chapter. 18 * Sec. 57. AS 08.45.200(2) is amended to read: 19  (2) "division" means the division of occupational licensing in the 20 Department of Labor [COMMERCE AND ECONOMIC DEVELOPMENT]; 21 * Sec. 58. AS 08.48.071(a) is amended to read: 22  (a) The following record of the board's proceedings and of all applications for 23 registration or authorization shall be kept by the Department of Labor [COMMERCE 24 AND ECONOMIC DEVELOPMENT] under AS 08.01.050: 25  (1) the name, age, and last known address of each applicant; 26  (2) the date of application; 27  (3) the place of business of the applicant; 28  (4) the education, experience, and other qualifications; 29  (5) the type of examination required; 30  (6) whether or not the applicant was rejected; 31  (7) whether or not a certificate of registration or authorization was

01 granted or endorsed; 02  (8) the date of the action of the board; 03  (9) other action taken by the board; 04  (10) other information that may be considered necessary by the board. 05 * Sec. 59. AS 08.48.071(e) is amended to read: 06  (e) The Department of Labor [COMMERCE AND ECONOMIC 07 DEVELOPMENT] shall, under AS 08.01.050, preserve the records under (a) of this 08 section for the previous five years. 09 * Sec. 60. AS 08.48.071(f) is amended to read: 10  (f) The Department of Labor [COMMERCE AND ECONOMIC 11 DEVELOPMENT] shall assemble statistics relating to the performance of its staff and 12 the performance of the board, including but not limited to, 13  (1) the number of architects, engineers, and land surveyors registered 14 over a five-year period; 15  (2) the rate of passage of examinations administered by the board; 16  (3) the number of persons making application for registration as a 17 professional architect, engineer, or land surveyor over a five-year period; 18  (4) an account of registration fees collected under AS 08.01.065; 19  (5) a measure of the correspondence workload of any licensing 20 examiner employed by the department to carry out this chapter. 21 * Sec. 61. AS 08.48.265 is amended to read: 22  Sec. 08.48.265. FEES. The Department of Labor [COMMERCE AND 23 ECONOMIC DEVELOPMENT] shall set fees under AS 08.01.065 for examinations, 24 registrations, certificates of authorization, and renewals of a certificate. 25 * Sec. 62. AS 08.54.300(a) is amended to read: 26  (a) For the purposes of licensing and regulating the activities of providers of 27 commercial services to big game hunters in the interest of the state's wildlife resources 28 there is created the Big Game Commercial Services Board. For administrative 29 purposes, the board is in the Department of Labor [COMMERCE AND ECONOMIC 30 DEVELOPMENT]. 31 * Sec. 63. AS 08.54.393(b) is amended to read:

01  (b) A guide-outfitter license, marine mammal guide-outfitter license, class-A 02 assistant guide-outfitter license, or assistant guide-outfitter license issued under this 03 chapter after May 16, 1992, is suspended if the person to whom the license is issued 04 subsequently becomes a law enforcement officer. A person whose license is subject 05 to suspension under this subsection shall notify the Department of Labor 06 [COMMERCE AND ECONOMIC DEVELOPMENT] that the person has become a 07 law enforcement officer within 30 days after becoming a law enforcement officer. The 08 suspension of a license under this subsection remains in effect until three months have 09 elapsed from the date on which the licensee provides written notification to the 10 Department of Labor [COMMERCE AND ECONOMIC DEVELOPMENT] of the fact 11 that the person is no longer a law enforcement officer. A person whose license is 12 suspended under this subsection is not required to renew the license or pay license 13 renewal fees for the period of suspension. Once a suspension of a license is 14 terminated, the licensee may provide, without further payment of a guide-outfitter 15 license fee, the guide-outfitter services authorized by the license for the remainder of 16 the licensing period in which the suspension is terminated. Notwithstanding other 17 provisions of this subsection, if a person whose license is suspended under this 18 subsection fails to notify the Department of Labor [COMMERCE AND ECONOMIC 19 DEVELOPMENT] within one year after the person is no longer a law enforcement 20 officer, the person's license lapses and the person is eligible for reissuance of the 21 license only as provided in AS 08.54.440. The board may adopt regulations to 22 implement this subsection. 23 * Sec. 64. AS 08.54.410 is amended to read: 24  Sec. 08.54.410. APPEAL TO COMMISSIONER FROM BOARD ON 25 DENIAL OF LICENSE. The commissioner of labor [COMMERCE AND 26 ECONOMIC DEVELOPMENT] may order that an applicant for an initial license 27 under AS 08.54.350 - 08.54.400 be allowed to take the license examination or be 28 issued the license if, after reviewing a petition filed by the applicant, the commissioner 29 finds that 30  (1) the board denied the applicant an opportunity to take the license 31 examination or refused to approve issuance of the license;

01  (2) the board's denial or refusal has been upheld by a final 02 administrative order and the order has not been appealed to the superior court under 03 AS 44.62.560; 04  (3) the board's denial or refusal was based on 05  (A) an error of fact by the board; or 06  (B) the applicant's failure of the license examination due to 07 faulty or unfair examination questions or procedures; 08  (4) the applicant is otherwise qualified to take the examination or to be 09 issued the license; and 10  (5) sustaining the board's denial or refusal would work a substantial 11 injustice on the applicant. 12 * Sec. 65. AS 08.54.590(7) is amended to read: 13  (7) "department" means the Department of Labor [COMMERCE AND 14 ECONOMIC DEVELOPMENT]; 15 * Sec. 66. AS 08.55.200(3) is amended to read: 16  (3) "department" means the Department of Labor [COMMERCE AND 17 ECONOMIC DEVELOPMENT]; 18 * Sec. 67. AS 08.62.900(2) is amended to read: 19  (2) "commissioner" means the commissioner of labor [THE 20 DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT]; 21 * Sec. 68. AS 08.62.900(3) is amended to read: 22  (3) "department" means the Department of Labor [COMMERCE AND 23 ECONOMIC DEVELOPMENT]; 24 * Sec. 69. AS 08.63.900(4) is amended to read: 25  (4) "department" means the Department of Labor [COMMERCE AND 26 ECONOMIC DEVELOPMENT]; 27 * Sec. 70. AS 08.64.380(2) is amended to read: 28  (2) "department" means the Department of Labor [COMMERCE AND 29 ECONOMIC DEVELOPMENT]; 30 * Sec. 71. AS 08.65.190(2) is amended to read: 31  (2) "department" means the Department of Labor [COMMERCE AND

01 ECONOMIC DEVELOPMENT]; 02 * Sec. 72. AS 08.68.111(a) is amended to read: 03  (a) The Department of Labor [COMMERCE AND ECONOMIC 04 DEVELOPMENT], in consultation with the board, shall employ a licensed, registered 05 nurse, who is not a member of the board, to serve as executive secretary of the board. 06 * Sec. 73. AS 08.68.220 is amended to read: 07  Sec. 08.68.220. FEES. The Department of Labor [COMMERCE AND 08 ECONOMIC DEVELOPMENT] shall set fees under AS 08.01.065 for each of the 09 following: 10  (1) registered nursing: 11  (A) application; 12  (B) license by examination; 13  (C) license by endorsement; 14  (D) license renewal; 15  (E) temporary permit; 16  (2) practical or vocational nursing: 17  (A) application; 18  (B) license by examination; 19  (C) license by endorsement; 20  (D) license renewal; 21  (E) temporary permit. 22 * Sec. 74. AS 08.70.090 is amended to read: 23  Sec. 08.70.090. APPLICATION. Applicants shall file applications with the 24 Department of Labor [COMMERCE AND ECONOMIC DEVELOPMENT] on forms 25 provided by the department. Information requested on the forms shall be given under 26 oath. 27 * Sec. 75. AS 08.70.180(2) is amended to read: 28  (2) "department" means the Department of Labor [COMMERCE AND 29 ECONOMIC DEVELOPMENT]; 30 * Sec. 76. AS 08.71.240(2) is amended to read: 31  (2) "department" means the Department of Labor [COMMERCE AND

01 ECONOMIC DEVELOPMENT]; 02 * Sec. 77. AS 08.72.300(2) is amended to read: 03  (2) "department" means the Department of Labor [COMMERCE AND 04 ECONOMIC DEVELOPMENT]; 05 * Sec. 78. AS 08.80.158(f) is amended to read: 06  (f) A pharmacy subject to this section shall appoint a registered agent in the 07 state who is empowered to accept, on behalf of the pharmacy, process, notice, and 08 demand required or permitted by law to be served upon the pharmacy. If the 09 pharmacy fails to appoint an agent under this subsection, if the registered agent cannot 10 with reasonable diligence be found at the registered office, or if the registration of the 11 pharmacy is suspended or revoked, the commissioner of labor [COMMERCE AND 12 ECONOMIC DEVELOPMENT] is an agent upon whom process, notice, or demand 13 may be served. Service is made upon the commissioner in the same manner as 14 provided for corporations under AS 10.06.175(b), except that for the purposes of 15 AS 10.06.175(b)(2)(A), the address shall be the last registered address of the pharmacy 16 as shown by the records of the board. 17 * Sec. 79. AS 08.80.160 is amended to read: 18  Sec. 08.80.160. FEES. The Department of Labor [COMMERCE AND 19 ECONOMIC DEVELOPMENT] shall set fees under AS 08.01.065 for the following: 20  (1) examination; 21  (2) reexamination; 22  (3) investigation for licensing by credentials; 23  (4) pharmacist license; 24  (5) temporary license; 25  (6) wholesale drug dealer license; 26  (7) retail pharmacy license; 27  (8) pharmacy intern registration; 28  (9) emergency permit; 29  (10) hospital pharmacy license (inpatient and outpatient); 30  (11) hospital drug room license (inpatient); 31  (12) nursing home and related facilities license for inpatient dispensing;

01  (13) license amendment or replacement; 02  (14) registration of a pharmacy located outside of the state. 03 * Sec. 80. AS 08.84.050 is amended to read: 04  Sec. 08.84.050. FEES. The Department of Labor [COMMERCE AND 05 ECONOMIC DEVELOPMENT] shall set fees under AS 08.01.065 for the following: 06  (1) application; 07  (2) license by examination; 08  (3) license by acceptance of credentials; 09  (4) renewal; 10  (5) temporary permit; 11  (6) limited permit. 12 * Sec. 81. AS 08.86.230(2) is amended to read: 13  (2) "department" means the Department of Labor [COMMERCE AND 14 ECONOMIC DEVELOPMENT]; 15 * Sec. 82. AS 08.87.010 is amended to read: 16  Sec. 08.87.010. BOARD CREATED. There is created in the Department of 17 Labor [COMMERCE AND ECONOMIC DEVELOPMENT] the Board of Certified 18 Real Estate Appraisers. The board is composed of five members appointed by the 19 governor. At least one member shall be a person licensed under this chapter as a 20 general real estate appraiser, at least one member shall be a person licensed under this 21 chapter as a residential real estate appraiser, at least one member shall be an executive 22 in a mortgage banking entity, and at least one member shall represent the public. The 23 board shall elect a chair from among its membership. 24 * Sec. 83. AS 08.87.900(6) is amended to read: 25  (6) "department" means the Department of Labor [COMMERCE AND 26 ECONOMIC DEVELOPMENT]; 27 * Sec. 84. AS 08.88.221 is amended to read: 28  Sec. 08.88.221. FEES. The Department of Labor [COMMERCE AND 29 ECONOMIC DEVELOPMENT] shall set fees under AS 08.01.065 for a real estate 30 broker, associate broker, or salesman licensee or applicant for the following: 31  (1) examination;

01  (2) reciprocity; 02  (3) initial license; 03  (4) renewal of an active license; 04  (5) renewal of an inactive license; 05  (6) amending or transferring a license; 06  (7) publications offered by the commission; 07  (8) seminars offered by the commission. 08 * Sec. 85. AS 08.92.090(2) is amended to read: 09  (2) "department" means the Department of Labor [COMMERCE AND 10 ECONOMIC DEVELOPMENT]; 11 * Sec. 86. AS 08.95.990(4) is amended to read: 12  (4) "department" means the Department of Labor [COMMERCE AND 13 ECONOMIC DEVELOPMENT]; 14 * Sec. 87. AS 08.98.250(4) is amended to read: 15  (4) "department" means the Department of Labor; [COMMERCE AND 16 ECONOMIC DEVELOPMENT.] 17 * Sec. 88. AS 09.25.110(e) is amended to read: 18  (e) Notwithstanding other provisions of this section to the contrary, the Bureau 19 of Vital Statistics and [,] the library archives in the Department of Education [, AND 20 THE DIVISION OF BANKING, SECURITIES, AND CORPORATIONS IN THE 21 DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT] may 22 continue to charge the same fees that they were [ARE] charging on September 25, 23 1990, for performing record searches, and may increase the fees as necessary to 24 recover agency expenses on the same basis that was [IS] used by the agency 25 immediately before September 25, 1990. Notwithstanding other provisions of this 26 section to the contrary, the division of banking, securities, and corporations in the 27 Department of Revenue may continue to charge the same fees that the former 28 Department of Commerce and Economic Development was charging on the 29 effective date of this bill section for performing record searches and may increase 30 the fees as necessary to recover agency expenses on the same basis that was used 31 by the former Department of Commerce and Economic Development immediately

01 before the effective date of this bill section. 02 * Sec. 89. AS 09.25.121 is amended to read: 03  Sec. 09.25.121. COPIES OF PUBLIC RECORDS FOR VETERANS. When 04 a copy of a public record is required by the Department of Military and Veterans' 05 Affairs, the Department of Community [COMMERCE] and Economic Development, 06 or by the United States Veterans' Administration to be used in determining the 07 eligibility of a person to participate in benefits, the official custodian of the public 08 record shall, without charge, provide the applicant for the benefits, a person acting on 09 behalf of the applicant, or an authorized representative of the department or the United 10 States Veterans' Administration with a certified copy of the record. 11 * Sec. 90. AS 09.38.025(b) is amended to read: 12  (b) A judgment creditor or other claimant of an insurer may not levy upon any 13 of the assets or securities held in this state as a deposit for the protection of the 14 insurer's policyholders or policyholders and creditors. Deposits under AS 21.09.270 15 may be levied upon if provided in the order of the director of insurance, Department 16 of Revenue [COMMERCE AND ECONOMIC DEVELOPMENT], under which the 17 deposit is made. 18 * Sec. 91. AS 10.06.990(10) is amended to read: 19  (10) "commissioner" means the commissioner of revenue 20 [COMMERCE AND ECONOMIC DEVELOPMENT] or a designee of the 21 commissioner; 22 * Sec. 92. AS 10.06.990(15) is amended to read: 23  (15) "department" means the Department of Revenue [COMMERCE 24 AND ECONOMIC DEVELOPMENT]; 25 * Sec. 93. AS 10.10.040 is amended to read: 26  Sec. 10.10.040. GENERAL POWERS. In furtherance of its purposes and in 27 addition to the powers now or hereafter conferred on business corporations by 28 AS 10.06.010, the corporation shall, subject to the restrictions and limitations contained 29 in this chapter have the following powers: 30  (1) to elect, appoint, and employ officers, agents, and employees; to 31 make contracts and incur liabilities for a purpose of the corporation, except that the

01 corporation may not incur a secondary liability by way of guaranty or endorsement of 02 the obligations of a person, firm, corporation, joint-stock company, association or trust, 03 or in another manner; 04  (2) to borrow money from its members and the Small Business 05 Administration and any other federal agency for a purpose of the corporation; to issue 06 for those purposes its bonds, debentures, notes or other evidences of indebtedness, 07 whether secured or unsecured, and to secure them by mortgage, pledge, deed of trust, 08 or other lien on its property, franchises, rights, and privileges of every kind and nature, 09 or a part of them or interest in them, without securing stockholder or member 10 approval; 11  (3) to make loans to a person, firm, corporation, joint-stock company, 12 association or trust, and to establish and regulate the terms and conditions with respect 13 to the loans and the charges for interest and service connected with them, except that 14 the corporation may not approve an application for a loan unless and until the person 15 applying for the loan shows that the applicant has applied for the loan through ordinary 16 banking channels and that the loan has been refused by at least one bank or other 17 financial institution; 18  (4) to purchase, receive, hold, lease, or otherwise acquire, and to sell, 19 convey, transfer, lease, or otherwise dispose of real and personal property, together 20 with the rights and privileges that are incidental and appurtenant to the property and 21 the use of it, including real or personal property acquired by the corporation from time 22 to time in the satisfaction of debts or enforcement of obligations; 23  (5) to acquire the good will, business, rights, real and personal property 24 and other assets, or a part of them, or interest in them, of any persons, firms, 25 corporations, joint-stock companies, associations or trusts, and to assume, undertake, 26 or pay the obligations, debts, and liabilities of the person, firm, corporation, joint-stock 27 company, association or trust; to acquire improved or unimproved real estate for the 28 purpose of constructing industrial plants or other business establishments on the real 29 estate [THEREON] or for the purpose of disposing of the real estate to others for the 30 construction of industrial plants or other business establishments; and to acquire, 31 construct or reconstruct, alter, repair, maintain, operate, sell, convey, transfer, lease,

01 or otherwise dispose of industrial plants or business establishments; 02  (6) to acquire, subscribe for, own, hold, sell, assign, transfer, mortgage, 03 pledge or otherwise dispose of the stock, shares, bonds, debentures, notes, or other 04 securities and evidences of interest in, or indebtedness of any person, firm, corporation, 05 joint-stock company, association or trust, and while the owner or holder of them to 06 exercise all the rights, powers, and privileges of ownership, including the right to vote 07 on them; 08  (7) to mortgage, pledge, or otherwise encumber any property, right or 09 thing of value, acquired under the powers contained in (4), (5), and (6) of this section 10 as security for the payment of a part of the purchase price of them; 11  (8) to cooperate with and avail itself of the facilities of the United 12 States Department of Commerce, the state Department of Community [COMMERCE] 13 and Economic Development, and any other state or federal governmental agencies; and 14 to cooperate with and assist, and otherwise encourage organizations in the various 15 communities of the state in the promotion, assistance, and development of the business 16 prosperity and economic welfare of the communities or of the state or of a part of the 17 state; 18  (9) to do whatever is necessary or convenient to carry out the powers 19 expressly granted in this chapter. 20 * Sec. 94. AS 10.10.150 is amended to read: 21  Sec. 10.10.150. EXAMINATIONS. The corporation shall be examined at least 22 once annually by the commissioner of administration and shall make reports of its 23 condition not less than annually to the commissioner of administration and more 24 frequently upon call of the commissioner of administration, who in turn shall make 25 copies of the reports available to the commissioner of community [COMMERCE] and 26 economic development and the governor. The corporation shall also furnish other 27 information that [WHICH] may from time to time be required by the commissioner 28 of administration. The corporation shall pay the actual cost of the examinations. 29 * Sec. 95. AS 10.10.210(2) is amended to read: 30  (2) "commissioner" means the commissioner of community 31 [COMMERCE] and economic development;

01 * Sec. 96. AS 10.13.990(8) is amended to read: 02  (8) "department" means the Department of Revenue [COMMERCE 03 AND ECONOMIC DEVELOPMENT]; 04 * Sec. 97. AS 10.15.595(3) is amended to read: 05  (3) "commissioner" means the commissioner of revenue [COMMERCE 06 AND ECONOMIC DEVELOPMENT]; 07 * Sec. 98. AS 10.15.595(7) is amended to read: 08  (7) "department" means the Department of Revenue [COMMERCE 09 AND ECONOMIC DEVELOPMENT]; 10 * Sec. 99. AS 10.20.720(4) is amended to read: 11  (4) "commissioner" means commissioner of revenue [COMMERCE 12 AND ECONOMIC DEVELOPMENT]; 13 * Sec. 100. AS 10.20.720(6) is amended to read: 14  (6) "department" means the Department of Revenue [COMMERCE 15 AND ECONOMIC DEVELOPMENT]; 16 * Sec. 101. AS 10.25.640(1) is amended to read: 17  (1) "commissioner" means the commissioner of revenue [COMMERCE 18 AND ECONOMIC DEVELOPMENT]; 19 * Sec. 102. AS 10.35.500(2) is amended to read: 20  (2) "commissioner" means the commissioner of revenue [COMMERCE 21 AND ECONOMIC DEVELOPMENT]. 22 * Sec. 103. AS 10.40.030 is amended to read: 23  Sec. 10.40.030. FILING OF ARTICLES OF INCORPORATION. One copy 24 of the articles shall be filed with the Department of Revenue [COMMERCE AND 25 ECONOMIC DEVELOPMENT]; one copy shall be filed in the office of the clerk of 26 the superior court in the judicial district in which the principal place of business of the 27 corporation is to be located; and one copy shall be retained by the corporation. Each 28 copy filed shall be recorded in a book kept for that purpose. 29 * Sec. 104. AS 10.40.090 is amended to read: 30  Sec. 10.40.090. FILING IMPRESSION OF SEAL. An impression of the 31 corporate seal shall be filed with the Department of Revenue [COMMERCE AND

01 ECONOMIC DEVELOPMENT]. 02 * Sec. 105. AS 10.40.100 is amended to read: 03  Sec. 10.40.100. ARTICLES AS EVIDENCE OF CORPORATE EXISTENCE. 04 The articles of incorporation or a certified copy of those filed with the Department of 05 Revenue [COMMERCE AND ECONOMIC DEVELOPMENT] are evidence of the 06 existence of the corporation. 07 * Sec. 106. AS 10.40.105 is amended to read: 08  Sec. 10.40.105. BIENNIAL REPORT. A corporation formed under this 09 chapter shall file a biennial report with the commissioner of revenue [COMMERCE 10 AND ECONOMIC DEVELOPMENT] setting out the real and personal property assets 11 of the corporation. 12 * Sec. 107. AS 10.45.010(a) is amended to read: 13  (a) One or more persons each of whom is licensed to render a professional 14 service in this state may incorporate a professional corporation by filing articles of 15 incorporation with the Department of Revenue [COMMERCE AND ECONOMIC 16 DEVELOPMENT]. The articles shall meet the requirements of AS 10.06 (Alaska 17 Corporations Code) and, in addition, must include 18  (1) the name of the profession to be practiced by the corporation; 19  (2) the names and addresses of all original shareholders, directors, and 20 officers; 21  (3) the address where the professional corporation will have its office. 22 * Sec. 108. AS 10.50.990(2) is amended to read: 23  (2) "commissioner" means the commissioner of revenue [COMMERCE 24 AND ECONOMIC DEVELOPMENT]; 25 * Sec. 109. AS 10.50.990(4) is amended to read: 26  (4) "department" means the Department of Revenue [COMMERCE 27 AND ECONOMIC DEVELOPMENT]; 28 * Sec. 110. AS 11.76.100(e) is amended to read: 29  (e) The court shall forward a record of each person convicted under this 30 section who holds a business license endorsement under AS 43.70.075, or who is an 31 employee or agent of a person who holds a license endorsement under AS 43.70.075

01 to the Department of Labor [COMMERCE AND ECONOMIC DEVELOPMENT]. 02 * Sec. 111. AS 14.08.031(a) is amended to read: 03  (a) The Department of Community and Economic Development [REGIONAL 04 AFFAIRS] in consultation with the Department of Education and local communities 05 shall divide the unorganized borough into educational service areas using the 06 boundaries or sub-boundaries of the regional corporations established under the Alaska 07 Native Claims Settlement Act, unless by referendum a community votes to merge with 08 another community contiguous to it but within the boundaries or sub-boundaries of 09 another regional corporation. 10 * Sec. 112. AS 14.08.051(a) is amended to read: 11  (a) The commissioner in consultation with the Department of Community and 12 Economic Development [REGIONAL AFFAIRS] and the local communities may 13 divide a regional educational attendance area into sections only for the purpose of 14 nominating and electing regional school board members. If the voters in a regional 15 educational attendance area favor election of regional school board members by 16 sections under (b) of this section, the commissioner in consultation with the 17 Department of Community and Economic Development [REGIONAL AFFAIRS] and 18 the local communities shall divide the regional educational attendance area into 19 sections for the purpose of nominating and electing regional school board members. 20 If a regional educational attendance area is divided into sections, each school board 21 member shall represent, as nearly as practicable, an equal number of persons. The 22 basis for the division of a regional educational attendance area into sections shall be 23 the total population of the area as reported in the most recent decennial federal census. 24 If the census is five years old or older, then other reliable population data, including 25 but not limited to population estimates based on public school enrollments, public 26 utility connections, registered voters, or certified employment payrolls, shall be used 27 as the basis for the division of the area into sections. Each section within a regional 28 educational attendance area shall consist of compact, contiguous territory and, as far 29 as practicable, each section shall contain an integrated socioeconomic, linguistically 30 and culturally homogeneous area. In the division of the regional school and attendance 31 area into sections, consideration shall be given to the transportation and communication

01 network to facilitate the administration of education and communication between 02 communities that comprise the area. Whenever possible, municipalities, other 03 governmental or regional corporate entities, drainage basins, and other identifiable 04 geographic features shall be used in describing the boundaries of the sections. 05 * Sec. 113. AS 14.17.025(a) is amended to read: 06  (a) Local contributions to a city or borough school district shall include at least 07 the lesser of 08  (1) the equivalent of a four mill tax levy on the full and true value of 09 the taxable real and personal property in the district as of January 1 of the second 10 preceding fiscal year, as determined by the Department of Revenue [COMMUNITY 11 AND REGIONAL AFFAIRS] under AS 14.17.140 and AS 29.45.110; or 12  (2) 35 percent of the district's basic need for the preceding fiscal year, 13 as determined under AS 14.17.021(b). 14 * Sec. 114. AS 14.17.025(b) is amended to read: 15  (b) In addition to the local contributions required under (a) of this section, 16 local contributions to a city or borough school district in a fiscal year may include no 17 more than the greater of 18  (1) the equivalent of a two mill tax levy on the full and true value of 19 the taxable real and personal property in the district as of January 1 of the second 20 preceding fiscal year, as determined by the Department of Revenue [COMMUNITY 21 AND REGIONAL AFFAIRS] under AS 14.17.140 and AS 29.45.110; or 22  (2) 23 percent of the district's basic need for the fiscal year under 23 AS 14.17.021(b), as adjusted under AS 14.17.225(b). 24 * Sec. 115. AS 14.17.025(f) is amended to read: 25  (f) For the first three fiscal years in which a newly formed city or borough 26 school district operates schools, local contributions may be less than the amount that 27 would otherwise be required under (a) of this section, except that 28  (1) local contributions in the second fiscal year of operations must be 29 at least the greater of 30  (A) the local contributions, excluding federal impact aid, for the 31 previous fiscal year; or

01  (B) the sum of 10 percent of the district's eligible federal 02 impact aid for that year and the equivalent of a two mill tax levy on the full 03 and true value of the taxable real and personal property in the newly formed 04 city or borough school district as of January 1 of the second preceding fiscal 05 year, as determined by the Department of Revenue [COMMUNITY AND 06 REGIONAL AFFAIRS] under AS 14.17.140 and AS 29.45.110; and 07  (2) in the third year of operation, local contributions must be at least 08 the greater of 09  (A) the local contributions, excluding federal impact aid, for the 10 previous fiscal year; or 11  (B) the sum of 10 percent of the district's eligible federal 12 impact aid for that year and the equivalent of a three mill tax levy on the full 13 and true value of the taxable real and personal property in the district as of 14 January 1 of the second preceding fiscal year, as determined by the Department 15 of Revenue [COMMUNITY AND REGIONAL AFFAIRS] under AS 14.17.140 16 and AS 29.45.110. 17 * Sec. 116. AS 14.17.140(a) is amended to read: 18  (a) To determine the amount of local effort under AS 14.17.025 and to aid the 19 department and the legislature in planning, the Department of Revenue 20 [COMMUNITY AND REGIONAL AFFAIRS], in consultation with the assessor for 21 each district, shall determine the full value of the taxable real and personal property 22 in each city or borough district. If there is no local assessor or current local 23 assessment for a district, then the Department of Revenue [COMMUNITY AND 24 REGIONAL AFFAIRS] shall make the determination of full value from information 25 available. In making the determination, the Department of Revenue [COMMUNITY 26 AND REGIONAL AFFAIRS] shall be guided by AS 29.45.110. The determination 27 of full value shall be made by October 1 and sent by certified mail, return receipt 28 requested, on or before that date to the president of the school board in each district. 29 Duplicate copies shall be sent to the commissioner. The governing body of a borough 30 or city that is a school district may obtain judicial review of the determination. The 31 superior court may modify the determination of the Department of Revenue

01 [COMMUNITY AND REGIONAL AFFAIRS] only upon a finding of abuse of 02 discretion or upon a finding that there is no substantial evidence to support the 03 determination. 04 * Sec. 117. AS 14.40.821(a) is amended to read: 05  (a) The Alaska Aerospace Development Corporation is created as a public 06 corporation of the state. The corporation is a body corporate and politic located for 07 administrative purposes within the Department of Community [COMMERCE] and 08 Economic Development and affiliated with the University of Alaska but with a 09 separate and independent legal existence. 10 * Sec. 118. AS 14.40.826(a) is amended to read: 11  (a) The board of directors of the corporation consists of nine members 12 appointed by the governor as follows: 13  (1) one member of the Board of Regents of the University of Alaska; 14  (2) the president or the designee of the president of the University of 15 Alaska; 16  (3) the director of the Geophysical Institute of the University of Alaska; 17  (4) the executive director of the Alaska Science and Technology 18 Foundation; 19  (5) the commissioner of community [COMMERCE] and economic 20 development or the commissioner's designee; 21  (6) two members who have experience and understanding of the 22 aerospace or commercial space industry, one of whom shall have a special emphasis 23 in federal regulatory procedures and policy involving space; 24  (7) one faculty member of the University of Alaska with research 25 interests involving rockets or satellites; 26  (8) a public member. 27 * Sec. 119. AS 14.40.831 is amended to read: 28  Sec. 14.40.831. CHAIR AND VICE-CHAIR. The president of the University 29 of Alaska or the designee of the president shall be the chair of the board of directors 30 of the corporation. The commissioner of community [COMMERCE] and economic 31 development or the designee of the commissioner shall be vice-chair of the board of

01 directors of the corporation. The vice-chair presides over all meetings in the absence 02 of the chair and has other duties the board of directors of the corporation may direct. 03 * Sec. 120. AS 14.42.120(a) is amended to read: 04  (a) The corporation shall be governed by a board of directors appointed by the 05 governor consisting of two members of the Alaska Commission on Postsecondary 06 Education, each of whom is selected for the commission under AS 14.42.015(a)(1) - 07 (2), (4) - (6), (8), or (9) and the commissioner of revenue, the commissioner of 08 administration, and the commissioner of community [COMMERCE] and economic 09 development. Members of the board serve without compensation but the members 10 who are also members of the Alaska Commission on Postsecondary Education are 11 entitled to per diem and travel expenses authorized by law for boards and commissions 12 under AS 39.20.180. 13 * Sec. 121. AS 14.43.120(i) is amended to read: 14  (i) If a loan is in default, the commission 15  (1) shall notify the borrower that, if the borrower has an occupational 16 license issued under AS 08, the license may not be renewed under AS 08.02.025 and 17 that repayment of the remaining balance is accelerated and due by sending the 18 borrower a notice by registered or certified mail; 19  (2) may take the borrower's permanent fund dividend under 20 AS 43.23.065(b)(3) to satisfy the balance due on the defaulted loan; and 21  (3) shall provide notice of the default to the Department of Labor 22 [COMMERCE AND ECONOMIC DEVELOPMENT], if the loan recipient is licensed 23 under AS 08. 24 * Sec. 122. AS 15.07.055(a) is amended to read: 25  (a) The following agencies are designated voter registration agencies: 26  (1) the Department of Public Safety, division of motor vehicles; 27  (2) divisions of the Department of Health and Social Services that 28 provide public assistance through the food stamp program, Medicaid program, Special 29 Supplemental Food Program for Women, Infants, and Children (WIC), and aid to 30 families with dependent children (AFDC) program; 31  (3) the divisions [DIVISION] of the Department of Revenue and the

01 Department of Community and Economic Development [REGIONAL AFFAIRS] that 02 are [IS] responsible for municipal and regional assistance programs; and 03  (4) all recruitment offices of the armed forces of the United States 04 located in Alaska. 05 * Sec. 123. AS 15.13.010(a) is amended to read: 06  (a) This chapter applies in every election for governor, lieutenant governor, a 07 member of the state legislature, a delegate to a constitutional convention, or judge 08 seeking electoral confirmation. It also applies to every candidate for election to a 09 municipal office in a municipality with a population of more than 1,000 inhabitants 10 according to the latest United States census figures or estimates of population certified 11 as correct for administrative purposes by the Department of Revenue [COMMUNITY 12 AND REGIONAL AFFAIRS]. A municipality may exempt its elected municipal 13 officers from the requirements of this chapter if a majority of the voters voting on the 14 question at a regular election, as defined by AS 29.71.800(20), or a special 15 municipality-wide election called for that purpose, vote to exempt its elected municipal 16 officers from the requirements of this chapter. The question of exemption from the 17 requirements of this chapter may be submitted by the governing body by ordinance or 18 by initiative election. This chapter does not prohibit a municipality from regulating 19 by ordinance campaign contributions and expenditures. 20 * Sec. 124. AS 16.10.265(d) is amended to read: 21  (d) The commissioner of labor [COMMERCE AND ECONOMIC 22 DEVELOPMENT] may suspend or revoke a business license issued under 23 AS 43.70.020 and the commissioner of revenue may suspend or revoke a license to 24 engage in the business of processing or buying raw fish if the licensee or an officer, 25 director, or employee in a policy-making position of the licensee has been convicted 26 of three offenses under this section. Proceedings to suspend or revoke a license are 27 governed by AS 44.62 (Administrative Procedure Act). 28 * Sec. 125. AS 16.10.360(2) is amended to read: 29  (2) "commissioner" means the commissioner of community 30 [COMMERCE] and economic development; 31 * Sec. 126. AS 16.10.360(4) is amended to read:

01  (4) "department" means the Department of Community [COMMERCE] 02 and Economic Development; 03 * Sec. 127. AS 16.10.470(b) is amended to read: 04  (b) A person who holds a permit for the operation of a salmon hatchery under 05 AS 16.10.400 - 16.10.470 and each regional association levying a voluntary assessment 06 under AS 16.10.540 shall submit an annual financial report to the Department of 07 Community [COMMERCE] and Economic Development on a form to be provided by 08 the Department of Community [COMMERCE] and Economic Development. 09 * Sec. 128. AS 16.10.505(a) is amended to read: 10  (a) There is created within the Department of Community [COMMERCE] and 11 Economic Development a revolving fund to be known as the fisheries enhancement 12 revolving loan fund. Except as provided in (b) and (c) of this section, the fund shall 13 be used to carry out the purposes of AS 16.10.500 - 16.10.560 and for no other 14 purpose. All principal and interest payments, and money chargeable to principal or 15 interest that is collected through liquidation by foreclosure or other process on loans 16 made under AS 16.10.500 - 16.10.560, shall be paid into the fisheries enhancement 17 revolving loan fund. 18 * Sec. 129. AS 16.10.555 is amended to read: 19  Sec. 16.10.555. DISPOSAL OF PROPERTY ACQUIRED BY DEFAULT OR 20 FORECLOSURE. The Department of Community [COMMERCE] and Economic 21 Development shall dispose of property acquired through default or foreclosure of a 22 loan made under AS 16.10.500 - 16.10.560. Disposal shall be made in a manner that 23 serves the best interests of the state, and may include the amortization of payments 24 over a period of years. 25 * Sec. 130. AS 16.10.560(1) is amended to read: 26  (1) "commissioner" means the commissioner of community 27 [COMMERCE] and economic development; 28 * Sec. 131. AS 16.51.010 is amended to read: 29  Sec. 16.51.010. ALASKA SEAFOOD MARKETING INSTITUTE 30 ESTABLISHED. There is established the Alaska Seafood Marketing Institute. The 31 institute is a public corporation of the state. It is an instrumentality of the state in the

01 Department of Community [COMMERCE] and Economic Development, but has a 02 legal existence independent of and separate from the state. Exercise by the institute 03 of the powers conferred by this chapter is an essential governmental function of the 04 state. 05 * Sec. 132. AS 16.52.060 is amended to read: 06  Sec. 16.52.060. COOPERATION WITH OTHER AGENCIES. In the 07 development of its programs the center shall consult with 08  (1) the Department of Fish and Game; 09  (2) [REPEALED 10  (3) REPEALED 11  (4)] the division of economic development of the Department of 12 Community [COMMERCE] and Economic Development; 13  (3) [(5)] the Department of Natural Resources; 14  (4) [(6)] the Alaska Fisheries Development Foundation; 15  (5) [(7)] the Alaska Seafood Marketing Institute; 16  (6) [(8)] the North Pacific Fishery Management Council; 17  (7) [(9)] the National Marine Fisheries Service; 18  (8) [(10)] the Department of Education; and 19  (9) [(11)] the Department of Labor. 20 * Sec. 133. AS 18.26.030(a) is amended to read: 21  (a) The authority shall be managed and controlled by a seven-person board of 22 directors, who serve at the pleasure of the governor, consisting of 23  (1) the commissioner of revenue, who shall also chair the board; 24  (2) the commissioner of health and social services; 25  (3) the commissioner of community and economic development 26 [REGIONAL AFFAIRS]; 27  (4) four public members, appointed by the governor. 28 * Sec. 134. AS 18.45.030 is amended to read: 29  Sec. 18.45.030. CONDUCT OF STUDIES CONCERNING CHANGES IN 30 LAWS AND REGULATIONS WITH A VIEW TO ATOMIC INDUSTRIAL 31 DEVELOPMENT. Each of the following departments and agencies of the state are

01 directed to initiate and to pursue continuing studies as to the need for changes in the 02 laws and regulations administered by it that would arise from the presence within the 03 state of special nuclear, by-product, and radioactive materials, from the operation of 04 production or utilization facilities, and from the generation of radiation, and, on the 05 basis of these studies, to make the recommendations for the enactment of laws or 06 amendments to law administered by it, and the proposals for amendments to the 07 regulations issued by it that it considers necessary: 08  (1) the Department of Health and Social Services particularly as to 09 hazards to the public health and safety; 10  (2) the Department of Labor particularly as to hazardous working 11 conditions; 12  (3) the Department of Labor particularly as to the time and character 13 of proof of claims of injuries and the extent of the compensation allowable; 14  (4) the Department of Transportation and Public Facilities particularly 15 as to the transportation of special nuclear, by-product, and radioactive materials on 16 highways of the state; 17  (5) the Department of Transportation and Public Facilities particularly 18 as to the transportation of special nuclear, by-product, and radioactive materials by 19 common carriers not in interstate commerce and as to the participation by public 20 utilities subject to its jurisdiction in projects for the development of production or 21 utilization facilities for industrial or commercial use; 22  (6) the Department of Revenue [COMMERCE AND ECONOMIC 23 DEVELOPMENT] particularly as to the insurance of persons and property from 24 hazards to life and property resulting from atomic development; 25  (7) the Department of Fish and Game particularly as to the hazards to 26 the natural resources of the state, including wildlife, and as to the protection of rivers, 27 streams, and airspace from pollution; 28  (8) the Department of Natural Resources particularly as to the hazards 29 involved in the mining of radioactive minerals; 30  (9) departments and agencies the governor directs and for the purposes 31 specified by the governor, and other departments and agencies provided by law.

01 * Sec. 135. AS 18.55.934(a) is amended to read: 02  (a) In connection with any project carried out under AS 18.55.932, the 03 commissioner of community [COMMERCE] and economic development may contract 04 with the corporation, under terms approved by the governor to provide a state grant-in- 05 aid equal to one-half the excess of the cost of the project, as determined by the commissioner, 06 over the federal grant-in-aid. 07 * Sec. 136. AS 18.56.030(a) is amended to read: 08  (a) The corporation shall be governed by a board of directors consisting of 09  (1) the commissioner of revenue; 10  (2) the commissioner of community and economic development 11 [REGIONAL AFFAIRS]; 12  (3) the commissioner of health and social services; and 13  (4) four public members appointed by the governor, as follows: 14  (A) one member with expertise or experience in finances or real 15 estate; 16  (B) one member who is a rural resident of the state or who has 17 expertise or experience with a regional housing authority; 18  (C) one member who has expertise or experience in residential 19 energy efficient home-building or weatherization; and 20  (D) one person who has expertise or experience in the provision 21 of senior or low-income housing. 22 * Sec. 137. AS 18.56.095(a) is amended to read: 23  (a) There is a special fund of the state to be known as the "state mortgage 24 insurance fund" (called the "mortgage insurance fund") that [WHICH] shall be 25 completely segregated and set apart from all other funds of the state, and that 26 [WHICH] is a trust fund for the uses and purposes of this section and into and from 27 which money shall be paid as provided in this section. The mortgage insurance fund 28 shall be held by the commissioner of revenue, subject to the power of the 29 commissioner of community [COMMERCE] and economic development to enter into 30 and perform agreements with respect to the use of money in the mortgage insurance 31 fund and to pledge, assign, or grant interests in the mortgage insurance fund as

01 provided in this section. The commissioner of community [COMMERCE] and 02 economic development may enter into agreements with the corporation with respect 03 to the exercise of any power or approval relating to the mortgage insurance fund under 04 this section, including, without limitation, agreements as to the use of money in the 05 mortgage insurance fund, agreements with respect to the terms and conditions upon 06 which payments from the mortgage insurance fund shall be made to the corporation 07 with respect to mortgage loans insured under this section, and agreements regarding 08 the payment of and security for mortgage insurance bonds, and in connection with 09 these agreements the commissioner of community [COMMERCE] and economic 10 development may pledge, assign, or grant other interests in the mortgage insurance 11 fund to the corporation as may be necessary or appropriate in connection with the 12 insurance of mortgage loans and to provide for the payment of and security for 13 mortgage insurance bonds. Any such agreement or any of the rights of the corporation 14 under the agreement and payments received or to be received under the agreement may 15 be pledged or assigned by the corporation for the benefit of the holders of mortgage 16 insurance bonds. 17 * Sec. 138. AS 18.56.095(e) is amended to read: 18  (e) Mortgage loans may only be insured when the amount in the mortgage 19 insurance fund as a percentage of the sum of all mortgage loans to be insured and all 20 unpaid principal on mortgage loans insured by the corporation, equals or exceeds the 21 fund requirement. As used in this section, the fund requirement is calculated as 22 follows as to the following mortgage loans insured by the corporation: 23  [(1)] in the case of federally insured or guaranteed mortgage loans, or 24 mortgage loans insured by a qualified mortgage insurance company or, if not so 25 insured or guaranteed, with a loan-to-value ratio at the time of the mortgage insurance 26 application less than 80 percent, the greater of (A) two percent of the unpaid principal 27 amount of those mortgage loans, or (B) a percentage that the corporation with the 28 approval of the commissioner of community [COMMERCE] and economic 29 development determines is actuarially sound for operation of the mortgage insurance 30 fund [; 31  (2) REPEALED].

01 * Sec. 139. AS 18.56.095(f) is amended to read: 02  (f) On December 1 of each year the commissioner of community 03 [COMMERCE] and economic development shall determine the amount on deposit in 04 the mortgage insurance fund. If the amount in the fund is less than the fund 05 requirement, the commissioner of community [COMMERCE] and economic 06 development shall request the corporation to transfer from any available funds the 07 amount necessary to restore the mortgage insurance fund to the fund requirement and 08 the corporation shall promptly comply with the request from any funds available 09 subject to agreements with holders of any of its obligations. If sufficient funds are not 10 provided as the result of the requests, the commissioner of community [COMMERCE] 11 and economic development shall, no later than January 2 of the following year, make 12 and deliver to the governor and to the chairs [CHAIRMEN] of the house and senate 13 finance committees a certificate stating the sum required to restore the fund to the fund 14 requirement and the sum so certified may be appropriated and paid to the fund during 15 the then current state fiscal year. Nothing in this subsection creates a debt or liability 16 of the state. 17 * Sec. 140. AS 18.56.095(h)(4) is amended to read: 18  (4) "special mortgage loan insurance commitment fee" and "special 19 mortgage loan insurance premium" mean, respectively, a fee of a percent of the 20 principal amount of a mortgage loan to be insured under this section, and an annual 21 insurance premium of a percent of the portion of the unpaid principal amount of a 22 mortgage loan insured under this section that is not federally insured or guaranteed or 23 insured by a private mortgage insurance company, that the corporation with the 24 approval of the commissioner of community [COMMERCE] and economic 25 development determines is actuarially sound for the operation of the mortgage 26 insurance fund; 27 * Sec. 141. AS 18.56.096(a) is amended to read: 28  (a) The corporation may not make, participate in the making of, purchase, or 29 participate in the purchase of 30  (1) a first mortgage loan under this chapter for a duplex, triplex, or 31 four-plex that exceeds the limitations on first mortgage loans for similar housing

01 purchased by the Federal National Mortgage Association as to principal amount and 02 loan-to-value ratio; 03  (2) a second mortgage loan for a duplex, triplex, or four-plex the 04 amount of which, when combined with the principal balance of a first mortgage loan 05 on the property, exceeds the limitation on the amount set out in (1) of this subsection 06 or that has a loan-to-value ratio, when considered with the principal balance of the first 07 mortgage loan, that exceeds 90 percent; 08  (3) a mortgage loan to finance the purchase of new housing or for the 09 improvement or rehabilitation of existing housing, unless the construction, 10 improvement, or rehabilitation work has been performed by a contractor who is 11 registered to work as a contractor under AS 08.18; this paragraph does not apply if the 12 construction, improvement, or rehabilitation work 13  (A) has been totally or substantially performed by the borrower; 14  (B) has been performed by a borrower who acts as the 15 contractor for the construction, improvement, or rehabilitation work; or 16  (C) has been performed in an area designated by the corporation 17 as exempt from the requirements of this paragraph because of the unavailability 18 of registered contractors in that area; 19  (4) a first mortgage loan for a single-family residence that exceeds the 20 limitations on first mortgage loans for similar housing purchased by the Federal 21 National Mortgage Association as to principal amount by more than 10 percent, or has 22 a loan-to-value ratio that exceeds 95 percent, or a second mortgage loan for a single- 23 family residence, the amount of which, when combined with the principal balance of a first 24 mortgage loan on the property, exceeds the limitations on loans for similar housing purchased 25 by the Federal National Mortgage Association as to principal amount by more than 10 percent, 26 or has a loan-to-value ratio, when considered with the principal balance of the first mortgage 27 loan, that exceeds 90 percent; 28  (5) a first or second mortgage loan for rental housing unless the 29 borrower agrees not to discriminate against tenants or prospective tenants because of 30 sex, marital status, changes in marital status, pregnancy, parenthood, race, religion, 31 color, national origin, or status as a student;

01  (6) a first mortgage loan if the borrower has an outstanding first 02 mortgage housing loan under this chapter or an outstanding first mortgage loan for 03 owner-occupied housing under former AS 44.47; or 04  (7) a loan to a person who has a past due child support obligation 05 established by court order or by the child support enforcement division under 06 AS 25.27.160 - 25.27.220 at the time of application. 07 * Sec. 142. AS 18.56.097 is amended to read: 08  Sec. 18.56.097. COLLATERAL FOR LOANS. Under procedures established 09 by regulations of the corporation adopted in accordance with AS 18.56.088 a person 10 may pledge as security for the repayment of a loan made, purchased, or insured by the 11 corporation under this chapter a preference right the person holds to receive title to 12 land the person occupies as a primary place of residence, primary place of business, 13 subsistence campsite, or as headquarters for reindeer husbandry. The preference right 14 must be conveyed to the person by the Native corporation to which the land was 15 granted under section 14 of the Alaska Native Claims Settlement Act (85 Stat. 688, 43 16 U.S.C. Sec. 1601 - 1626, as amended by P.L. 94-204) before it may be pledged as 17 security under this section. The Department of Community and Economic 18 Development [REGIONAL AFFAIRS] shall prescribe procedures and standard forms 19 for establishing and appraising the value of a preference right held by a person to 20 secure the repayment of a loan made, purchased, or insured by the corporation under 21 this chapter. 22 * Sec. 143. AS 18.60.240 is amended to read: 23  Sec. 18.60.240. APPOINTMENT AND QUALIFICATIONS OF SPECIAL 24 INSPECTORS. In addition to the deputy boiler inspectors provided for in 25 AS 18.60.230, the Department of Labor shall, upon the request of a company 26 authorized by the Department of Revenue [COMMERCE AND ECONOMIC 27 DEVELOPMENT] under AS 21.09 to insure against loss from explosion of boilers and 28 unfired pressure vessels as described in AS 21.12.070(a)(7), or upon the request of a 29 company operating unfired pressure vessels, issue to an inspector of the company a 30 state commission as a special inspector. However, to be eligible for a commission as 31 special inspector, a person must have passed the examination provided for in

01 AS 18.60.290, or hold a certificate as an inspector of boilers from the National Board 02 of Boiler and Pressure Vessel Inspectors. 03 * Sec. 144. AS 18.60.340(b) is amended to read: 04  (b) A company authorized by the Department of Revenue [COMMERCE AND 05 ECONOMIC DEVELOPMENT] under AS 21.09 to insure boilers or unfired pressure 06 vessels shall notify the Department of Labor each time it discontinues the insurance 07 for a boiler or unfired pressure vessel located in the state. The Department of Labor 08 shall terminate the inspection certificate and require a reinspection if the insurance was 09 terminated because of a condition dangerous to life or property. 10 * Sec. 145. AS 18.65.755(a) is amended to read: 11  (a) A permittee may not carry a concealed handgun into 12  (1) a law enforcement or correctional facility; 13  (2) or on school grounds or a school bus; in this paragraph, "school 14 grounds" has the meaning given in AS 11.71.900; 15  (3) a courthouse or a courtroom of this state, unless the permittee 16  (A) is a judge; or 17  (B) has been authorized to possess a concealed handgun by a 18 judge presiding at that courthouse or courtroom; 19  (4) a building housing only state or federal offices or the offices of a 20 political subdivision of the state, except as authorized under (3) of this subsection; 21  (5) an office of the state, federal government, or of a political 22 subdivision of the state that is not located in a building described in (4) of this 23 subsection; 24  (6) a passenger loading or unloading area of an airline terminal; 25  (7) a vessel of the Alaska marine highway system; 26  (8) a facility providing services to victims of domestic violence or 27 sexual assault; 28  (9) a residence where notice that carrying a concealed handgun is 29 prohibited has been given by the posting of a conspicuous notice or by oral statement 30 by the resident to the permittee; 31  (10) a meeting of a business, charitable, or other organization or entity

01 where notice that carrying a concealed handgun is prohibited has been given by the 02 posting of conspicuous notice; 03  (11) a financial institution; in this paragraph, "financial institution" 04 means a bank, savings bank, savings association, credit union, or other institution 05 regulated by the Department of Revenue [COMMERCE AND ECONOMIC 06 DEVELOPMENT] under AS 06; 07  (12) another place where the possession of a deadly weapon or firearm 08 is prohibited by law; or 09  (13) a municipality or established village that has prohibited the 10 possession of concealed handguns by a permit under AS 18.65.780 - 18.65.785. 11 * Sec. 146. AS 18.70.081 is amended to read: 12  Sec. 18.70.081. APPROVAL OF FIRE PROTECTION SYSTEMS. Before 13 October 30 of each year the Department of Public Safety shall prepare and make 14 available a list of approved fire protection systems to [THE DEPARTMENT OF 15 COMMUNITY AND REGIONAL AFFAIRS,] the Department of Community 16 [COMMERCE] and Economic Development [,] and the public. 17 * Sec. 147. AS 19.30.131(a) is amended to read: 18  (a) During each fiscal year the commissioner shall allocate sums appropriated 19 or otherwise designated for expenditure upon local service roads for that fiscal year 20 among the five allocation districts in the following manner: one-half in the ratio that 21 the area of each allocation district bears to the total area of the state and one-half in 22 the ratio that the population of each allocation district bears to the total population of 23 the state as shown by the latest available federal or state census or other census 24 approved by the Department of Revenue [COMMUNITY AND REGIONAL 25 AFFAIRS]. 26 * Sec. 148. AS 19.30.131(b) is amended to read: 27  (b) The commissioner shall also further allocate the sums in each allocation 28 district to the boroughs and unified municipalities within each allocation district in the 29 following manner: one-half in the ratio that the area of each organized borough or 30 unified municipality (excluding salt water areas) within that district bears to the total 31 area of the allocation district and one-half in the ratio that the population of each

01 organized borough area or each unified municipality within that district bears to the 02 total population of the allocation district as shown by the latest available federal or 03 state census or other census approved by the Department of Revenue [COMMUNITY 04 AND REGIONAL AFFAIRS]. 05 * Sec. 149. AS 19.30.131(c) is amended to read: 06  (c) The commissioner shall also further allocate portions of the sum allocated 07 to any organized borough and to any home rule city within the organized borough in 08 the following manner: 09  (1) one-half in the ratio that the area of each home rule city bears to 10 the total area of the organized borough excluding salt water areas; and 11  (2) one-half in the ratio that the population of each home rule city bears 12 to the total population of the organized borough as shown by the latest available 13 federal or state census or other census approved by the Department of Revenue 14 [COMMUNITY AND REGIONAL AFFAIRS]. 15 * Sec. 150. AS 21.06.010 is amended to read: 16  Sec. 21.06.010. APPOINTMENT OF DIRECTOR. The commissioner of 17 revenue [COMMERCE AND ECONOMIC DEVELOPMENT] shall appoint the 18 director, division of insurance, Department of Revenue [COMMERCE AND 19 ECONOMIC DEVELOPMENT]. The director serves at the pleasure of the 20 commissioner. 21 * Sec. 151. AS 21.06.020 is amended to read: 22  Sec. 21.06.020. DIVISION OF INSURANCE. (a) There is created within the 23 Department of Revenue [COMMERCE AND ECONOMIC DEVELOPMENT] a 24 division of insurance, that [WHICH] shall be located in or convenient to the office 25 occupied by the commissioner of revenue [COMMERCE AND ECONOMIC 26 DEVELOPMENT]. 27  (b) The division of insurance shall be under the administrative control of the 28 commissioner of revenue [COMMERCE AND ECONOMIC DEVELOPMENT] and 29 the supervision of the director of the division of insurance. 30 * Sec. 152. AS 21.59.020(b) is amended to read: 31  (b) If the corporation is to be formed under the laws of this state, the articles

01 of incorporation of the proposed corporation or amendments to existing articles of 02 incorporation shall be submitted to the director before they are filed with the 03 commissioner of revenue [COMMERCE AND ECONOMIC DEVELOPMENT]. The 04 commissioner of revenue [COMMERCE AND ECONOMIC DEVELOPMENT] may 05 not file the articles or amendments unless the director's approval is endorsed. The 06 director shall approve the articles or amendments unless the director finds that the 07 articles or amendments do not comply with law. If not approved, the director shall 08 return the proposed articles of incorporation to the incorporators or amendments to the 09 corporation, together with a written, detailed statement of the reasons for nonapproval. 10 * Sec. 153. AS 21.69.040(b) is amended to read: 11  (b) When the articles of incorporation have been approved by the director, the 12 director shall endorse the approval upon each set of the articles; except, that if the 13 director finds that the proposed insurer would not be eligible for a certificate of 14 authority under AS 21.09.100, the director shall refuse to approve the articles of 15 incorporation, and shall return them to the proposed incorporators together with a 16 written statement of the reasons for the refusal. If approved by the director, the 17 director shall then forward the articles of incorporation, endorsed with the approval, 18 to the incorporators. The incorporators shall immediately file one set of the articles 19 of incorporation with the commissioner of revenue [COMMERCE AND ECONOMIC 20 DEVELOPMENT], one set with the director bearing the certification of the 21 commissioner, and the remaining set of articles shall be made a part of the 22 corporation's record. 23 * Sec. 154. AS 21.69.050(c) is amended to read: 24  (c) Upon adoption of an amendment the insurer shall make in triplicate under 25 its corporate seal a certificate, sometimes referred to as "articles of amendment," 26 setting out the amendment and the date and manner of its adoption, the [WHICH] 27 certificate shall be executed by the insurer's president or vice-president and secretary 28 or assistant secretary and acknowledged by them before an officer authorized by law 29 to take acknowledgements of deeds. The insurer shall deliver to the director the 30 triplicate originals of the certificate, together with a filing fee set under AS 21.06.250. 31 If the director finds that the certificate and amendments comply with law, the director

01 shall endorse approval upon each of the triplicate originals and return them to the 02 insurer. The insurer shall immediately file one set of the endorsed articles of 03 amendment with the commissioner of revenue [COMMERCE AND ECONOMIC 04 DEVELOPMENT], one set with the director bearing the certification of the 05 commissioner, and retain the remaining set in the corporate records. The amendment 06 shall be effective when the filings have been completed. 07 * Sec. 155. AS 21.87.050(b) is amended to read: 08  (b) Before the articles of incorporation of the proposed corporation formed 09 after July 1, 1966, are filed with the commissioner of revenue [COMMERCE AND 10 ECONOMIC DEVELOPMENT], they shall be submitted to the director, and the 11 commissioner may not file the articles unless the director's approval is endorsed 12 thereon. The director shall approve the articles unless the director finds that they do 13 not comply with law. If not approved, the director shall return the proposed articles 14 of incorporation to the incorporators together with a written statement of particulars 15 of the reasons for nonapproval. 16 * Sec. 156. AS 21.90.900(7) is amended to read: 17  (7) "commissioner" means the commissioner of revenue [COMMERCE 18 AND ECONOMIC DEVELOPMENT]; 19 * Sec. 157. AS 21.90.900(10) is amended to read: 20  (10) "division" means the division of insurance, Department of 21 Revenue [COMMERCE AND ECONOMIC DEVELOPMENT]; 22 * Sec. 158. AS 23.05 is amended by adding a new section to read: 23  Sec. 23.05.065. FEES FOR PUBLICATIONS, RESEARCH DATA, AND 24 OTHER SERVICES. The commissioner may establish by regulation and the 25 department may charge reasonable fees for department publications, research data, and 26 other centralized administrative services to cover the cost of reproduction, printing, 27 mailing, distribution, and other centralized administrative services. 28 * Sec. 159. AS 23.05 is amended by adding new sections to read: 29 ARTICLE 6. BUSINESS INCENTIVE TRAINING PROGRAM. 30  Sec. 23.05.400. BUSINESS INCENTIVE TRAINING PROGRAM 31 ESTABLISHED. (a) There is established in the department the business incentive

01 training program. The incentive program shall be administered as a supplement to the 02 Job Training Partnership Act (P.L. No. 97-300). 03  (b) The purpose of the incentive program is to encourage private industry to 04 provide new job opportunities by offering assistance in training the new work force 05 and in retraining existing employees to implement new technologies. 06  Sec. 23.05.410. ADMINISTRATION. (a) The Alaska Human Resources 07 Investment Council established in AS 44.19.620 shall oversee the incentive program. 08 The service delivery areas established under 29 U.S.C. 1511 and subject to 09 redesignation under 29 U.S.C. 1515 shall be used in the administration of the incentive 10 program. The private industry councils appointed under 29 U.S.C. 1512 and subject 11 to reconstitution under 29 U.S.C. 1515 shall serve as the private industry councils for 12 the incentive program. 13  (b) The council shall divide appropriations for the incentive program equally 14 among the private industry councils. If a private industry council lacks sufficient 15 money to fund a proposal, the private industry council may apply to the council for 16 additional funding. The council may approve reallocation of money from one service 17 delivery area to another to fund a particular proposal if it finds that the reallocation 18 will best serve the purposes of the program. 19  (c) The council shall adopt regulations under AS 44.62 (Administrative 20 Procedure Act) to implement AS 23.05.400 - 23.05.510. 21  Sec. 23.05.420. BUSINESS INCENTIVE TRAINING PLAN. (a) A private 22 industry council shall adopt a business incentive training plan for the service delivery 23 area. The plan must extend for two years to coincide with the term for the Job 24 Training Partnership Act (P.L. 97-300) and must contain 25  (1) identification of the entity or entities that will administer the 26 incentive program and be the grant recipient for grants from the state; 27  (2) a description of the services to be provided, including the estimated 28 duration of service and the estimated training cost per participant; 29  (3) procedures for identifying and selecting participants; 30  (4) performance goals established in accordance with standards under 31 AS 23.05.480;

01  (5) procedures for awarding grants to businesses; and 02  (6) the budget for two program years and any proposed expenditures 03 for the succeeding two program years in as much detail as required by the grant 04 administrator designated under AS 23.05.440. 05  (b) If changes in labor market conditions, funding, or other factors require 06 substantial deviation from an approved business incentive training plan, the private 07 industry council and the appropriate elected municipal official or officials shall submit 08 a modification of the plan and the budget for review under AS 23.05.430. 09  Sec. 23.05.430. REVIEW AND APPROVAL OF BUSINESS INCENTIVE 10 TRAINING PLAN. The business incentive training plan shall be published and made 11 available for review and comment as an attachment to the job training plan as set out 12 in 29 U.S.C. 1515. The business incentive training plan is subject to review and 13 approval by the governor. 14  Sec. 23.05.440. BUSINESS INCENTIVE TRAINING GRANTS. (a) Each 15 private industry council shall designate an administrative entity to be the grant 16 recipient and administrator for the region. An employer may apply to the grant 17 administrator for a business incentive grant if the employer is a private for-profit or 18 nonprofit corporation, partnership, or sole proprietor business. The grant administrator 19 shall review applications and award grants. 20  (b) Each grant administrator is responsible for the allocation of funds and the 21 eligibility of those enrolled in its programs. The grant administrator is responsible for 22 taking action against its subcontractors, subgrantees, and other recipients to eliminate 23 abuses in the programs they are carrying out, and to prevent misuse of funds. If the 24 arrangement is included in an approved job training plan, a grant administrator may 25 delegate the responsibility for determining eligibility under reasonable safeguards, 26 including provisions for reimbursement of costs incurred because of erroneous 27 determinations made with insufficient care. 28  (c) A business incentive training grant shall be used to recruit and train eligible 29 employees for newly created permanent or permanent seasonal positions or to enable 30 existing employees to acquire the skills necessary to qualify the employee to 31 implement new technologies. A business incentive training grant may be used for

01 occupations for which there is a demand in the area served or in another area to which 02 the participant is willing to relocate and for emerging technologies in the state. In 03 selecting recruiting and training programs, the private industry councils and the grant 04 administrators may consider whether the occupation in which recruiting or training is 05 sought is in a sector of the economy that has a high potential for sustained demand or 06 growth. 07  (d) Only individuals eligible under the business incentive training plan and 08 residing in the service delivery area may be participants in employment and training 09 activities funded under the business incentive training program. To be eligible for 10 training or education services under AS 23.05.400 - 23.05.510, immediately before 11 beginning training or education under the program a person shall 12  (1) have been unemployed and 13  (A) receiving unemployment insurance benefits; or 14  (B) have exhausted the right to unemployment insurance 15 benefits within the past three years; 16  (2) be liable to be displaced from work within the next six months 17 because of 18  (A) reductions in overall employment within the business; 19  (B) elimination of the person's current job; or 20  (C) a change in the conditions of the employee's job requiring 21 that, to remain employed, the employee must have substantially different skills 22 that the employee does not now possess; or 23  (3) have worked in a position covered by AS 23.20 at any time during 24 the last three years and be ineligible for unemployment insurance benefits because the 25 person 26  (A) was working in a seasonal, temporary, part-time, or other 27 marginal employment; 28  (B) has insufficient qualifying wages because of limited job 29 opportunities; or 30  (C) is employed, but, because the person is underemployed, the 31 person needs employment assistance and training to obtain full employment.

01  (e) Payments to employers for on-the-job training of participants who 02 experience multiple barriers to employment or are eligible under the Job Training 03 Partnership Act (P.L. 97-300) may not average more than 80 percent of the wages paid 04 by the employer to the participant. Payments to employers for on-the-job training of 05 other participants may not average more than 50 percent of the wages paid by the 06 employer to participants. The payments shall be considered to be in compensation for 07 the extraordinary costs associated with training employees for new positions and the 08 lower productivity of the participants. 09  (f) A grant made under the business incentive training program may not be 10 used to duplicate facilities or services available in the area from federal, state, or local 11 sources unless the business incentive training plan establishes that services or facilities 12 under the program would be more effective or more likely to achieve performance 13 goals. 14  (g) A fee may not be charged for placing an individual in or referring an 15 individual to a training program under AS 23.05.400 - 23.05.510. 16  (h) A business incentive training grant may not be awarded to a program that 17 involves political activities. 18  (i) An employer at whose request a participant is offered training shall fulfill 19 the obligation to offer a successful participant in the business incentive training 20 program a position or promotion, as applicable. A participant is considered successful 21 if the participant satisfactorily completes the training program in which the participant 22 was enrolled. 23  Sec. 23.05.450. COMPENSATION FOR PARTICIPANTS. (a) A trainee may 24 not receive a payment for training activities in which the trainee fails to participate. 25  (b) An individual in on-the-job training shall be compensated by the employer 26 at the same rates, including periodic increases, as similarly situated employees or 27 trainees and in accordance with applicable law. However, an individual may not be 28 paid less than the state minimum wage under AS 23.10.065 whether or not the 29 individual is exempt under AS 23.10.055 or 23.10.070. 30  (c) An individual employed in activities authorized under the business 31 incentive training program other than on-the-job training shall be paid wages that are

01 not less than the highest of 02  (1) the state minimum wage under AS 23.10.065; 03  (2) the prevailing rate of pay for individuals employed in similar 04 occupations by the same employer; or 05  (3) the prevailing rate of wages under AS 36.05 or 40 U.S.C. 276a - 06 276a-5, if applicable. 07  (d) Allowances, earnings, and payments to individuals participating in 08 programs under the business incentive training program may not be considered as 09 income in determining eligibility for and the amount of income transfer and in-kind 10 aid furnished under a state program based on need, other than programs under the 11 Social Security Act. 12  (e) Conditions of employment and training must be appropriate and reasonable 13 in light of factors including the type of work, geographical region, and proficiency of 14 the participant. 15  (f) An individual employed in a subsidized job under the business incentive 16 training program shall be provided benefits and working conditions at the same level 17 and to the same extent as other employees working a similar length of time and doing 18 the same type of work. 19  (g) Money from a grant under the business incentive training program may not 20 be used for contributions on behalf of a participant to retirement systems or plans. 21  Sec. 23.05.460. REPORTING AND RECORDKEEPING. (a) A grant 22 administrator shall maintain records of each participant's enrollment in a business 23 incentive training program in sufficient detail to demonstrate compliance with 24 AS 23.05.400 - 23.05.510. 25  (b) The council shall adopt regulations concerning retention of records. 26  (c) The council shall report annually to the legislature concerning the incentive 27 program no later than February 1. 28  Sec. 23.05.470. ALLOWABLE COSTS. (a) To be allowable, a cost must be 29 necessary and reasonable for proper and efficient administration of the program. The 30 following costs are not allowable: 31  (1) costs resulting from violations of or failure to comply with federal,

01 state, or local laws and regulations; 02  (2) entertainment costs; and 03  (3) insurance policies offering protection against debts established by 04 the federal government. 05  (b) Personal liability insurance for members of the private industry council is 06 an allowable cost. 07  Sec. 23.05.480. PERFORMANCE STANDARDS. (a) The basic measure of 08 performance for training programs under AS 23.05.400 - 23.05.510 is the increase in 09 jobs in the area and in employment and earnings for participants resulting from 10 participation in the program. In order to determine whether these standards are 11 achieved, the governor shall adopt standards based on appropriate factors. 12  (b) The governor shall provide technical assistance to programs that do not 13 meet performance criteria. If a program fails to meet performance standards for two 14 consecutive years, the governor shall withdraw unencumbered funds from the program. 15  (c) An interested party who is harmed by a change made under this section is 16 entitled to a hearing under AS 44.62 (Administrative Procedure Act). 17  Sec. 23.05.490. LIMITATION ON CERTAIN COSTS. No more than 15 18 percent of the money available to a service delivery area for a fiscal year may be 19 expended for the cost of administration. For purposes of this section, costs of program 20 support, including counseling, that are directly related to the provision of education or 21 training to participants may not be counted as part of the cost of administration. 22  Sec. 23.05.500. SELECTION OF SERVICE PROVIDERS. (a) The primary 23 consideration in selecting agencies or organizations to deliver services within a service 24 delivery area is the effectiveness of the agency or organization in delivering 25 comparable or related services based on demonstrated performance, in terms of the 26 likelihood of meeting performance goals, cost, quality of training, and characteristics 27 of participants. In complying with this subsection, proper consideration shall be given 28 to community based organizations as service providers. 29  (b) Appropriate education agencies in the service delivery area shall be given 30 the opportunity to provide educational services, unless the grant administrator 31 determines that alternative agencies or organizations would be more effective or would

01 have greater potential to enhance the participants' continued occupational and career 02 growth. 03  (c) The grant administrator may not fund an occupational skills training 04 program unless the level of skills provided in the program is in accordance with 05 guidelines established by the private industry council. 06  Sec. 23.05.510. DEFINITIONS. In 23.05.400 - 23.05.510, 07  (1) "council" means the Alaska Human Resources Investment Council 08 established in AS 44.19.620; 09  (2) "incentive program" means the business incentive training program 10 established under AS 23.05.400; 11  (3) "participant" means an individual receiving education or training, 12 including on-the-job training, under an incentive program grant. 13 * Sec. 160. AS 23.30.265(18) is amended to read: 14  (18) "insurance commissioner" refers to the person who heads the 15 insurance division or section of the Department of Revenue [COMMERCE AND 16 ECONOMIC DEVELOPMENT] and is charged with the administration of the state 17 insurance laws; 18 * Sec. 161. AS 24.08.035(e) is amended to read: 19  (e) If a bill or resolution, except an appropriation bill, significantly increases 20 costs to a municipality, there shall be attached to the measure a municipal fiscal note 21 containing an estimate for the current fiscal year and five succeeding fiscal years of 22 the cost to municipalities that would result from enactment of the measure. The last 23 committee to which the bill is referred on the day it is introduced in the house of 24 origin shall request the municipal fiscal note. It shall be prepared by the Department 25 of Community and Economic Development [REGIONAL AFFAIRS]. It shall be 26 delivered in accordance with (d) of this section within five days of the request, or 27 within two days if the request is made after the 90th day of a regular session or during 28 a special session. The municipal fiscal note must contain information that substantially 29 complies with (c)(1), (2), and (6) - (9) of this section to the extent the information is 30 available to the department. 31 * Sec. 162. AS 26.15.010(a) is amended to read:

01  (a) The Department of Community [COMMERCE] and Economic 02 Development shall administer the laws and regulations relating to the veterans' loan 03 program, adopt new regulations, and recommend legislation. 04 * Sec. 163. AS 26.15.030(a) is amended to read: 05  (a) The Department of Community [COMMERCE] and Economic 06 Development shall formulate general policies and adopt regulations, including 07 regulations to establish reasonable fees for services provided. 08 * Sec. 164. AS 26.15.040 is amended to read: 09  Sec. 26.15.040. VETERANS' LOANS. (a) The commissioner of community 10 [COMMERCE] and economic development may, under regulations and policies, make 11 the following loans: 12  (1) personal loans may be made for educational, domestic, remote area 13 family housing and other personal purposes, not exceeding $10,000; the loans shall be 14 secured by acceptable collateral when available but if not available the commissioner 15 may make loans on the basis of good character; the rate of interest may not exceed 16 nine and one-half per cent a year on the unpaid balance; 17  (2) Repealed 18  (3) business loans not exceeding $125,000 may be made to acquire, 19 finance or refinance, or equip businesses, including mining and fishing but not 20 including farming, if the loan applicant has had three or more years of general business 21 experience; the loans shall be secured by acceptable collateral and may not exceed 75 22 percent of the appraised value of the collateral offered as security; the rate of interest 23 may not exceed nine and one-half percent a year on the unpaid balance; 24  (4) multiple dwelling loans not exceeding $110,000 may be made to 25 purchase, remodel, repair, build, furnish, refinance or equip multiple dwellings; the 26 loans shall be secured by acceptable collateral and may not exceed 75 percent of the 27 appraised value of the collateral offered as security; the rate of interest may not exceed 28 nine and one-half percent a year on the unpaid balance. 29  (b) The commissioner of community [COMMERCE] and economic 30 development may enter into agreements with private banks, other lending institutions 31 and individuals for the purpose of guaranteeing loans made to qualified applicants.

01 The guarantees may not exceed 90 percent of the amount loaned and the loans shall 02 be secured in the same manner provided for direct loans under this section. A loan 03 made under this subsection and guaranteed by the commissioner of community 04 [COMMERCE] and economic development and the state shall bear an interest rate not 05 exceeding nine and one-half percent a year on the unpaid balance. 06  (c) Loans authorized by former (a)(2) of this section or (a)(3) and (4) of this 07 section may not be made unless the commissioner of community [COMMERCE] and 08 economic development is satisfied that money at a comparable rate of interest is not 09 available to the applicant from private lending institutions on a guaranteed basis as set 10 out in (b) of this section. An applicant is eligible for more than one type of loan, but 11 the total may not exceed $125,000 at any one time. 12  (d) Money loaned shall be delivered to the borrower in the form of a warrant 13 drawn on the treasury, vouchered in the manner prescribed for state disbursing officers, 14 and charged against the Alaska World War II veterans' revolving fund. Each voucher 15 shall be approved by the commissioner of community [COMMERCE] and economic 16 development or any bonded deputy authorized to act as a certifying officer. Upon 17 repayment of loans by installments, or otherwise, in accordance with the prescribed 18 terms, or upon liquidation by foreclosure or other process, or upon receipt of interest, 19 the money so received shall be turned over to the commissioner of revenue for deposit 20 in the Alaska World War II veterans' revolving fund. 21  (e) If a loan made under (a)(3) of this section is assigned by the borrower or 22 if the real property that secures a loan made under former (a)(2) or under (a)(4) of this 23 section is transferred by the borrower, the commissioner of community 24 [COMMERCE] and economic development shall allow the assignee or transferee to 25 assume the outstanding indebtedness on the loan unless the commissioner determines 26 in writing that the credit of the assignee or transferee is not satisfactory to assure 27 repayment of the loan. The assignee or transferee may assume the outstanding 28 indebtedness on the loan at the existing interest rate on the loan. 29 * Sec. 165. AS 26.15.070(a) is amended to read: 30  (a) The commissioner of community [COMMERCE] and economic 31 development may sell or transfer at par value or at a premium or discount to any bank

01 or other private purchaser for cash or other consideration the mortgages and notes held 02 by the Department of Community [COMMERCE] and Economic Development as 03 security for loans made under this chapter. 04 * Sec. 166. AS 26.15.085 is amended to read: 05  Sec. 26.15.085. DISPOSAL OF PROPERTY ACQUIRED BY DEFAULT OR 06 FORECLOSURE. The Department of Community [COMMERCE] and Economic 07 Development shall dispose of property acquired through default or foreclosure of a 08 loan made under this chapter. Disposal shall be made in a manner that serves the best 09 interests of the state, and may include the amortization of payments over a period of 10 years. 11 * Sec. 167. AS 26.15.095(b) is amended to read: 12  (b) The commissioner of community [COMMERCE] and economic 13 development may expend money credited to the foreclosure expense account when 14 necessary to protect the state's security interest in collateral on loans made under 15 AS 26.15.040 or to defray expenses incurred during foreclosure proceedings after a 16 default by an obligor. 17 * Sec. 168. AS 26.15.160 is amended to read: 18  Sec. 26.15.160. EXTENSION OF CHAPTER TO MEMBERS OF THE 19 ALASKA TERRITORIAL GUARD AND TO VETERANS OF KOREA AND VIET 20 NAM. The provisions of this chapter, except those provisions relating to the payment 21 of bonuses, are extended to persons who served in the Alaska Territorial Guard, who 22 served other than dishonorably on active duty between June 25, 1950, and January 31, 23 1955, who served other than dishonorably on active duty between August 4, 1964, and 24 November 7, 1975, and to dependents of those persons, subject to the following 25 provisions and eligibility qualifications: 26  (1) persons are eligible 27  (A) who served in the Alaska Territorial Guard, who were 28 discharged other than dishonorably from the armed forces of the United States, 29 or who are released to a reserve component; and 30  (B) who at the time of entry into the service were bona fide 31 residents of the territory or State of Alaska and had been residents of the

01 territory or state for not less than one year before their entry into the service; 02 and who have returned to the territory or state within a reasonable length of 03 time after the end of their service in the Alaska Territorial Guard or their 04 discharge or separation as residents with the intention of remaining in the 05 territory or state; or who, not being bona fide residents of the territory before 06 their entry into the service, have lived in the territory or state for at least five 07 years following their release from active military service; and 08  (C) who served in the armed forces of the United States for 90 09 days or more, or whose service was for a lesser period because of injury or 10 disability incurred in line of duty, between June 25, 1950, and January 31, 11 1955, or who served in the armed forces of the United States for 90 days or 12 more or whose service was for a lesser period because of injury or disability 13 incurred in line of duty, between August 4, 1964, and July 1, 1977, or who 14 served in the Alaska Territorial Guard for 90 days or more or whose service 15 in the Alaska Territorial Guard was for a lesser period because of injury or 16 disability incurred in the line of duty; 17  (2) persons are eligible who were dependent upon a member of the 18 Alaska Territorial Guard or armed forces or upon a veteran, including persons who 19 served in the Alaska Territorial Guard, eligible for the benefits of this chapter at the 20 time of the member's or veteran's death if the member or veteran was a resident of 21 the territory for one year before entry into service and died before November 5, 1975; 22 dependents must be unmarried and the deceased veteran or member of the armed 23 forces must have been their chief means of support and they must be either a widow, 24 widower, minor child, or a mother, father, sister, or brother incapable of self-support; 25 dependents must be residents of the state at the time of application and shall intend to 26 remain residents in the state permanently; the rights of minor children under this 27 chapter may be exercised only if they have no surviving parent and have an appointed 28 guardian who may apply on their behalf for the benefits of this chapter for their care, 29 support, or education; 30  (3) a person who is eligible for veteran's benefits under the laws of any 31 other state or territory is not eligible for the benefits of this section unless the person

01 has lived in the state or territory for at least five years following the end of the 02 person's service in the Alaska Territorial Guard or release from active military service; 03 a World War II veteran who received a bonus under former AS 26.15.120 and former 04 AS 26.15.150 need not repay the bonus in order to qualify under the loan provisions 05 of this section; 06  (4) for persons otherwise eligible for the benefits under this section, 07 who did not return to the state or territory within one year after the end of the persons' 08 service in the Alaska Territorial Guard or separation from the service unless prevented 09 from doing so for medical, educational, or other valid purposes approved by the 10 Department of Community [COMMERCE] and Economic Development within one 11 year after the end of the persons' service in the Alaska Territorial Guard or separation 12 from the service, an additional requirement of four years' residence in the state or 13 territory before their entry into the service is imposed to entitle them to the benefit 14 provisions of this section. 15 * Sec. 169. AS 26.23.071(b) is amended to read: 16  (b) The commission consists of the commissioners of community and 17 economic development [REGIONAL AFFAIRS], environmental conservation, fish and 18 game, health and social services, labor, natural resources, public safety, and 19 transportation and public facilities, or the designees of the commissioners, the adjutant 20 general of the Department of Military and Veterans' Affairs or a designee, and seven 21 members of the public appointed by the governor, two of whom must be members of 22 a local emergency planning committee for an emergency planning district that is 23 predominantly rural in character and two of whom must be members of a local 24 emergency planning committee for an emergency planning district that is 25 predominantly urban in character. Two of the other three members of the public who 26 are appointed to the commission must be members of the governing body of, or the 27 mayor of, a political subdivision that has a local emergency planning committee or a 28 person who, in the opinion of the governor, is otherwise appropriate to represent the 29 political subdivision. The United States Department of Defense - Alaska Command, 30 the Federal Emergency Management Agency, the United States Environmental 31 Protection Agency, and the United States Coast Guard may each appoint a

01 representative to serve on the commission in an ex-officio, nonvoting capacity. To the 02 extent practicable, the commission must include members with expertise in the 03 emergency response field. 04 * Sec. 170. AS 27.09.010(a) is amended to read: 05  (a) There is established in the Department of Community [COMMERCE] and 06 Economic Development the mining loan fund. The department may make loans from 07 the fund to underwrite advanced mineral exploration, development, or mining in the 08 state. 09 * Sec. 171. AS 27.09.015(b) is amended to read: 10  (b) The commissioner of community [COMMERCE] and economic 11 development may expend money credited to the foreclosure expense account when 12 necessary to protect the state's security interest in collateral on loans made under 13 AS 27.09.010 or to defray expenses incurred during foreclosure proceedings after a 14 default by an obligor. 15 * Sec. 172. AS 27.09.050 is amended to read: 16  Sec. 27.09.050. REGULATIONS. The department may adopt regulations 17 necessary to carry out the provisions of this chapter, including regulations to establish 18 reasonable fees for services provided. Regulations adopted under this section shall be 19 prepared after consultation with the Department of Natural Resources or after 20 consultation with a person who, in the opinion of the commissioner of community 21 [COMMERCE] and economic development or a designee, has broad experience in and 22 is highly qualified in advanced mineral exploration, development, and mining. 23 * Sec. 173. AS 27.09.060(3) is amended to read: 24  (3) "department" means the Department of Community [COMMERCE] 25 and Economic Development; 26 * Sec. 174. AS 28.01.010(b) is amended to read: 27  (b) A municipality may adopt by reference all or a part of this title and 28 regulations adopted under this title, and may request and shall receive from the 29 Departments of Public Safety and Community and Economic Development 30 [REGIONAL AFFAIRS] assistance in the drafting of model ordinances for adoption 31 by reference. Notwithstanding (a) of this section, a municipality may enact necessary

01 ordinances to meet specific local requirements. 02 * Sec. 175. AS 28.20.580 is amended to read: 03  Sec. 28.20.580. ASSIGNED RISK PLANS. After consultation with the 04 insurance companies authorized to issue motor vehicle liability policies in this state, 05 the director of the division of insurance shall approve a reasonable plan, fair to the 06 insurers and equitable to their policyholders, for the apportionment among these 07 companies of applicants for motor vehicle policies and other vehicle coverages who 08 are in good faith entitled to but are unable to procure policies through ordinary 09 methods. When a plan is approved, all the insurance companies shall subscribe to it 10 and participate in it, except a reciprocal insurer formed by and only insuring a group 11 of municipalities or nonprofit utilities under AS 21.75, or a reciprocal insurer formed 12 under AS 21.75 to provide marine insurance. An applicant for an assigned risk policy, 13 a person insured under an assigned risk plan, and an insurance company affected may 14 appeal to the commissioner of revenue [COMMERCE AND ECONOMIC 15 DEVELOPMENT] from a ruling or decision of the authority designated to operate the 16 plan. Failure to adopt an assigned risk plan does not relieve any person from 17 responsibility under this chapter. 18 * Sec. 176. AS 29.04.040 is amended by adding a new subsection to read: 19  (f) In this section, "department" means the Department of Community and 20 Economic Development. 21 * Sec. 177. AS 29.05 is amended by adding a new section to read: 22 ARTICLE 4. GENERAL PROVISIONS. 23  Sec. 29.05.900. DEFINITION. In this chapter, "department" means the 24 Department of Community and Economic Development. 25 * Sec. 178. AS 29.06.040(c) is amended to read: 26  (c) In addition to the regulations governing annexation by local action adopted 27 under AS 44.33.812 [AS 44.47.567], the Local Boundary Commission shall establish 28 procedures for annexation and detachment of territory by municipalities by local 29 action. The procedures established under this subsection include a provision that 30  (1) a proposed annexation and detachment must be approved by a 31 majority of votes on the question cast by voters residing in the area proposed to be

01 annexed or detached; 02  (2) municipally owned property adjoining the municipality may be 03 annexed by ordinance without voter approval; and 04  (3) an area adjoining the municipality may be annexed by ordinance 05 without an election if all property owners and voters in the area petition the governing 06 body. 07 * Sec. 179. AS 29.06 is amended by adding a new section to read: 08 ARTICLE 6. GENERAL PROVISIONS. 09  Sec. 29.06.900. DEFINITION. In this chapter, "department" means the 10 Department of Community and Economic Development. 11 * Sec. 180. AS 29.10 is amended by adding a new section to read: 12 ARTICLE 3. GENERAL PROVISIONS. 13  Sec. 29.10.900. DEFINITION. In this chapter, "department" means the 14 Department of Community and Economic Development. 15 * Sec. 181. AS 29.20 is amended by adding a new section to read: 16 ARTICLE 8. GENERAL PROVISIONS. 17  Sec. 29.20.900. DEFINITIONS. In this chapter, 18  (1) "commissioner" means the commissioner of community and 19 economic development; 20  (2) "department" means the Department of Community and Economic 21 Development. 22 * Sec. 182. AS 29.35 is amended by adding a new section to read: 23 ARTICLE 10. GENERAL PROVISIONS. 24  Sec. 29.35.900. DEFINITION. In this chapter, "department" means the 25 Department of Community and Economic Development. 26 * Sec. 183. AS 29.45.080(b) is amended to read: 27  (b) A municipality may levy and collect a tax on the full and true value of 28 taxable property taxable under AS 43.56 as valued by the department 29 [DEPARTMENT OF REVENUE] at a rate not to exceed that which produces an 30 amount of revenue from the total municipal property tax equivalent to $1,500 a year 31 for each person residing in its boundaries.

01 * Sec. 184. AS 29.45.080(c) is amended to read: 02  (c) A municipality may levy and collect a tax on the full and true value of that 03 portion of taxable property taxable under AS 43.56 as assessed by the department 04 [DEPARTMENT OF REVENUE] which value, when combined with the value of 05 property otherwise taxable by the municipality, does not exceed the product of 225 06 percent of the average per capita assessed full and true value of property in the state 07 multiplied by the number of residents of the taxing municipality. 08 * Sec. 185. AS 29.45.080(d) is amended to read: 09  (d) By February 1 of each assessment year a taxing municipality shall inform 10 the department [DEPARTMENT OF REVENUE] which method of taxation the 11 municipality will use. 12 * Sec. 186. AS 29.45 is amended by adding a new section to read: 13  Sec. 29.45.900. In this chapter, 14  (1) "commissioner" means the commissioner of revenue; 15  (2) "department" means the Department of Revenue. 16 * Sec. 187. AS 29.60.120(d) is amended to read: 17  (d) Before money may be distributed under this section, the commissioner of 18 health and social services shall certify to the commissioner of revenue [COMMUNITY 19 AND REGIONAL AFFAIRS] that any accumulation of assets by nonprofit 20 corporations or other recipients under this section is dedicated irrevocably to a public 21 purpose. 22 * Sec. 188. AS 29.60.370(a) is amended to read: 23  (a) If the amount in the municipal assistance fund at the time of distribution 24 exceeds the base amount to be distributed under AS 29.60.360, the excess amount shall 25 be distributed to each municipality on the basis of population. Population for the 26 purpose of this section shall be as certified by the commissioner of revenue 27 [COMMUNITY AND REGIONAL AFFAIRS]. In determining the population of a 28 borough, the population of all cities in the borough shall be deducted from the total 29 population of the borough. 30 * Sec. 189. AS 29.60.400(a) is amended to read: 31  (a) Within the limits of appropriations for the purpose the Department of

01 Community [COMMERCE] and Economic Development shall make matching grants 02 in accordance with the provisions of AS 29.60.410 - 29.60.440 to municipalities or 03 their nonprofit designees equal to 04  (1) 50 percent of the estimated reasonable costs of construction of 05 municipal civic, convention, and community recreation centers; and 06  (2) 50 percent of the cost of feasibility studies relating to the 07 construction of municipal civic, convention, and community recreation centers. 08 * Sec. 190. AS 29.60.410 is amended to read: 09  Sec. 29.60.410. GRANT PROCEDURES. (a) An application for a grant 10 under AS 29.60.400 shall be made in a form prescribed by the commissioner of 11 community [COMMERCE] and economic development. 12  (b) A grant shall be allotted in accordance with an agreement made between 13 the commissioner of community [COMMERCE] and economic development on behalf 14 of the state and the grantee. The agreement may include any provision agreed upon 15 by the parties and must include in substance the following provisions: 16  (1) estimates of reasonable costs of the study or project as approved by 17 the commissioner after consultation with the Department of Transportation and Public 18 Facilities; 19  (2) a schedule of disbursements of money from the grant if the 20 commissioner determines that the grant money is not to be disbursed in one sum; 21  (3) agreement by the grantee 22  (A) to proceed with and complete the proposed study or project 23 expeditiously; 24  (B) not to discontinue operation or dispose of all or part of a 25 community facility for which it receives a grant without the approval of the 26 commissioner; 27  (C) to apply for and make reasonable efforts to secure federal 28 assistance that may be available for the study or project, subject to any 29 conditions the commissioner may require to maximize the amounts of that 30 assistance available for all projects in the state; 31  (D) to provide for payment of the grantee's share of the cost of

01 the study or project; 02  (E) that, if federal assistance for a study or project becomes 03 available to the grantee that was not included in the calculation of the amount 04 of the grant, the value of the federal assistance shall be subtracted from the 05 total value of the project and the balance shall be equally divided between the 06 grantee and the state; 07  (4) alteration or modification of an approved study or project; 08  (5) alteration or modification of an existing facility that would have 09 qualified for a grant at the time of initial construction if AS 29.60.400 - 29.60.440 had 10 been in effect; 11  (6) remedies in case of failure to perform the agreement or 12 noncompliance with regulations adopted under AS 29.60.420. 13  (c) The commissioner of community [COMMERCE] and economic 14 development shall require in negotiations and in each grant agreement that continued 15 maintenance of the community facility is the responsibility of the municipality. The 16 municipality must show the feasibility of continuing to maintain the facility before 17 state money may be authorized for a grant. 18 * Sec. 191. AS 29.60.420(b) is amended to read: 19  (b) The commissioner of community [COMMERCE] and economic 20 development shall adopt regulations to carry out the purposes of AS 29.60.400 - 21 29.60.440. 22 * Sec. 192. AS 29.60.430 is amended to read: 23  Sec. 29.60.430. ALLOCATION OF MONEY. If the amount of money 24 appropriated by the legislature for grants under AS 29.60.400 is not adequate to satisfy 25 amounts required for approved grant applications, money shall be allocated on the 26 basis of priority established by regulations of the Department of Community 27 [COMMERCE] and Economic Development. 28 * Sec. 193. AS 29.60 is amended by adding a new section to article 5 to read: 29  Sec. 29.60.449. DEFINITIONS. In AS 29.60.400 - 29.60.449, 30  (1) "commissioner" means the commissioner of community and 31 economic development;

01  (2) "department" means the Department of Community and Economic 02 Development. 03 * Sec. 194. AS 29.60.599(9) is amended to read: 04  (9) "village" means a place within the unorganized borough or within 05 a borough if the power, function, or service for which a grant application is submitted 06 under AS 29.60.500 - 29.60.599 is not exercised or provided by the borough on an 07 areawide or nonareawide basis at the time the grant application is submitted, that 08  (A) has irrevocably waived, in a form approved by the 09 Department of Law, any claim of sovereign immunity that might arise in 10 connection with the use of grant money under 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 under 17 regulations adopted by the department to determine and give official 18 recognition of village entities under AS 44.33.755(b) [AS 44.47.150(b)]. 19 * Sec. 195. AS 29.60.599 is amended by adding new paragraphs to read: 20  (10) "commissioner" means the commissioner of community and 21 economic development; 22  (11) "department" means the Department of Community and Economic 23 Development. 24 * Sec. 196. AS 29.60.620(b) is amended to read: 25  (b) For purposes of (a) of this section, population shall be determined by the 26 Department of Revenue [COMMUNITY AND REGIONAL AFFAIRS] based on the 27 latest figures of the United States Bureau of the Census or other reliable population 28 data. If a city within a borough has an approved grant for a service to be provided on 29 an areawide basis, the allocation under (a) of this section shall be based on the 30 population of the borough. 31 * Sec. 197. AS 29.60.650(2) is amended to read:

01  (2) "municipality" means a (A) city whose population is over 20,000; 02 (B) unified municipality whose population is over 100,000; or (C) second class 03 borough whose population is over 65,000; population for purposes of this paragraph 04 shall be determined by the Department of Revenue [COMMUNITY AND REGIONAL 05 AFFAIRS]. 06 * Sec. 198. AS 29.60 is amended by adding a new section to read: 07 ARTICLE 9. GENERAL PROVISIONS. 08  Sec. 29.60.900. DEFINITIONS. Except as provided in AS 29.60.449 and 09 29.60.599, in this chapter, 10  (1) "commissioner" means the commissioner of revenue; 11  (2) "department" means the Department of Revenue. 12 * Sec. 199. AS 29.65.050(c) is amended to read: 13  (c) The director shall approve or disapprove each selection for patent within 14 nine months of its selection by a municipality. Before a decision is issued, the 15 Department of Community and Economic Development [REGIONAL AFFAIRS] shall 16 review the selection and recommend approval or disapproval of it. The director may 17 disapprove a selection only upon a finding that the public interest in retaining state 18 ownership of the land outweighs the municipality's interest in obtaining the land. A 19 patent shall be issued to the municipality for land selected in satisfaction of a general 20 grant land entitlement vested under AS 29.65.010 - 29.65.030 within three months after 21 approval by the director of a plat of survey. 22 * Sec. 200. AS 29.65.050(d) is amended to read: 23  (d) Before disapproving a selection, the director shall notify the municipality 24 in writing of the decision and set out reasons for it. The municipality may submit a 25 written response within 30 days after receipt of the notice. Within 30 days after the 26 period for responding has expired, the director shall affirm, modify, or reverse the 27 decision and supply the municipality with written notice of that action. If the selection 28 is disapproved, the municipality may file notice of an appeal with the director. The 29 appeal shall be heard under procedures adopted by regulation of the Department of 30 Natural Resources. Before reaching a decision on an appeal the Department of Natural 31 Resources shall request the Department of Community and Economic Development

01 [REGIONAL AFFAIRS] to review the matter and submit a recommendation. After 02 reviewing the recommendation, a decision on the appeal shall be submitted by the 03 Department of Natural Resources to the municipality in writing within 30 days after 04 the notice of appeal was filed with the director. A municipality may appeal an adverse 05 decision to the superior court under AS 44.62.560 - 44.62.570. 06 * Sec. 201. AS 29.65.060(f) is amended to read: 07  (f) For purposes of determining the per capita entitlement under (a) of this 08 section, the population of a municipality shall be the population determined by the 09 commissioner of community and regional affairs under former AS 43.18.010 for the 10 program year beginning July 1, 1978, for a municipality whose entitlement was 11 determined under former AS 29.18.201 or 29.18.202. 12 * Sec. 202. AS 29.65.120 is amended to read: 13  Sec. 29.65.120. REGULATIONS. The commissioner of natural resources may, 14 after consultation with the Department of Community and Economic Development 15 [REGIONAL AFFAIRS], adopt regulations in accordance with AS 44.62 16 (Administrative Procedure Act) necessary to carry out the purposes of this chapter. 17 * Sec. 203. AS 30.13.010(a) is amended to read: 18  (a) The residents of each area of the state within the boundaries of a regional 19 housing authority established under AS 18.55.996 that [WHICH] is located in whole 20 or in part in the unorganized borough of the state may create a public body corporate 21 and politic under the name and style of the "Resource Development Authority" with 22 all or any significant part of the name of the region of the state inserted. The 23 boundaries of the authority created shall be coterminous with the portion of the 24 applicable regional housing authority that lies in the unorganized borough. Creation 25 of an authority is initiated by a petition filed with the Department of Community and 26 Economic Development [REGIONAL AFFAIRS] and a statement submitted to the 27 governor. The petition must include the proposed name of the authority, its 28 boundaries, and a statement of the facilities proposed to be provided by the authority. 29 The petition must be signed by 15 percent of the total number of residents in the 30 portion of the applicable regional housing authority that lies in the unorganized 31 borough who cast votes in the preceding general election. The Department of

01 Community and Economic Development [REGIONAL AFFAIRS] shall review 02 petitions for content and signatures. If the department determines that the petition is 03 adequate, it shall transmit the petition to the director of elections. 04 * Sec. 204. AS 32.11.010(a) is amended to read: 05  (a) In order to form a limited partnership, a certificate of limited partnership 06 shall be executed and filed with the Department of Revenue [COMMERCE AND 07 ECONOMIC DEVELOPMENT]. The certificate must set out 08  (1) the name of the limited partnership; 09  (2) the address of the office and the name and address of the agent for 10 service of process required to be maintained by AS 32.11.830; 11  (3) the name and business address of each general partner; 12  (4) the latest date upon which the limited partnership is to dissolve; and 13  (5) other matters the general partners determine to include. 14 * Sec. 205. AS 32.11.900(2) is amended to read: 15  (2) "commissioner" means the commissioner of revenue [COMMERCE 16 AND ECONOMIC DEVELOPMENT]; 17 * Sec. 206. AS 32.11.900(4) is amended to read: 18  (4) "department" means the Department of Revenue [COMMERCE 19 AND ECONOMIC DEVELOPMENT]; 20 * Sec. 207. AS 34.03.340 is amended to read: 21  Sec. 34.03.340. SERVICE OF PROCESS. If a landlord is not a resident of 22 this state or is a corporation not authorized to do business in this state and engages in 23 any conduct in this state governed by this chapter, or engages in a transaction subject 24 to this chapter, the landlord may designate an agent upon whom service of process 25 may be made in this state. The agent shall be a resident of this state or a corporation 26 authorized to do business in this state. The agent shall be the same person designated 27 under AS 34.03.080. The designation shall be in writing and filed with the 28 commissioner of revenue [COMMERCE AND ECONOMIC DEVELOPMENT]. If 29 no designation is made and filed or if process cannot be served in this state upon the 30 designated agent, process may be served upon the commissioner of revenue 31 [COMMERCE AND ECONOMIC DEVELOPMENT], but the service upon the

01 commissioner is not effective unless the plaintiff or petitioner immediately mails a 02 copy of the process and pleadings by certified or registered mail to the defendant or 03 respondent at the last ascertainable address of the defendant or respondent. An 04 affidavit of compliance with this section shall be filed with the clerk of the court 05 having jurisdiction on or before the return day for the process, if any, or within any 06 further time allowed by the court. 07 * Sec. 208. AS 34.55.044(1) is amended to read: 08  (1) "department" means Department of Natural Resources 09 [COMMERCE AND ECONOMIC DEVELOPMENT]; 10 * Sec. 209. AS 36.30.322(a) is amended to read: 11  (a) Only timber, lumber, and manufactured lumber products originating in this 12 state from Alaska forests may be procured by an agency or used in construction 13 projects of an agency unless the manufacturers and suppliers who have notified the 14 commissioner of community [COMMERCE] and economic development of their 15 willingness to manufacture or supply Alaska forest products 16  (1) have been given reasonable notice of the forest product needs of the 17 procurement or project; and 18  (2) are unable to supply the products at a cost that is within seven 19 percent of the price offered by a manufacturer or supplier of non-Alaska forest 20 products. 21 * Sec. 210. AS 36.30.322(c) is amended to read: 22  (c) During the period of performance of a state contract, the contractor shall 23 maintain records showing efforts made in using Alaska forest products or evidence of 24 Alaska forest products not being available or reasonably competitive. The contractor 25 shall provide the records to the procurement officer on a periodic basis, as required by 26 regulations adopted by the commissioner of community [COMMERCE] and economic 27 development. 28 * Sec. 211. AS 36.30.330(c) is amended to read: 29  (c) The procurement officer shall report to the commissioner of community 30 [COMMERCE] and economic development each contractor penalized under (a) of this 31 section. The commissioner of community [COMMERCE] and economic development

01 shall maintain a list of contractors determined not to be responsible bidders under (b) 02 of this section. 03 * Sec. 212. AS 36.30.332(a) is amended to read: 04  (a) The commissioner of community [COMMERCE] and economic 05 development shall adopt regulations establishing the value added in the state for 06 materials and supplies produced or manufactured in the state that are used in a state 07 procurement and establishing whether a product qualifies as a recycled Alaska product. 08 The commissioner shall publish a list of the products annually. A supplier may 09 request inclusion of its product on the appropriate list. 10 * Sec. 213. AS 36.30.850(b) is amended to read: 11  (b) This chapter applies to every expenditure of state money by the state, 12 acting through an agency, under a contract, except that this chapter does not apply to 13  (1) grants; 14  (2) contracts for professional witnesses to provide for professional 15 services or testimony relating to existing or probable lawsuits in which the state is or 16 may become a party; 17  (3) contracts of the University of Alaska where the work is to be 18 performed substantially by students enrolled in the university; 19  (4) contracts for medical doctors and dentists; 20  (5) acquisitions or disposals of real property or interest in real property, 21 except as provided in AS 36.30.080 and 36.30.085; 22  (6) disposals under AS 38.05; 23  (7) contracts for the preparation of ballots under AS 15.15.030; 24  (8) acquisitions or disposals of property and other contracts relating to 25 airports under AS 02.15.070, 02.15.090, 02.15.091, and AS 44.88; 26  (9) disposals of obsolete property under AS 19.05.060; 27  (10) disposals of obsolete material or equipment under AS 35.20.060; 28  (11) agreements with providers of services under [AS 44.47.250;] 29 AS 47.07; AS 47.08; AS 47.10; AS 47.17; AS 47.24; AS 47.25.195, [AND] 47.25.310; 30 and AS 47.35.910; 31  (12) contracts of the Department of Fish and Game for flights that

01 involve specialized flying and piloting skills and are not point-to-point; 02  (13) purchases of income-producing assets for the state treasury or a 03 public corporation of the state; 04  (14) operation of the state boarding school established under AS 14.16, 05 if the State Board of Education or the commissioner of education adopts regulations 06 for use by the state boarding school in procurement and contracting; 07  (15) a contract that is a delegation, in whole or in part, of investment 08 powers held by the commissioner of revenue under AS 14.40.400, AS 14.42.200, 09 14.42.210, AS 18.56.095, AS 37.10.070, 37.10.071, or AS 37.14; 10  (16) a contract that is a delegation, in whole or in part, of investment 11 powers or fiduciary duties of 12  (A) the Board of Trustees of the Alaska Permanent Fund 13 Corporation under AS 37.13; 14  (B) the Alaska Mental Health Trust Authority under 15 AS 37.14.001 - 37.14.099; 16  (17) the purchase of books, book binding services, newspapers, 17 periodicals, audio-visual materials, network information services access, approval plans, 18 professional memberships, archival materials, objects of art, and items for museum or 19 archival acquisition having cultural, historical, or archaeological significance; in this 20 paragraph, 21  (A) "approval plans" means book selection services in which 22 current book titles meeting an agency's customized specifications are provided 23 to the agency subject to the right of the agency to return those books that do 24 not meet with the agency's approval; 25  (B) "archival materials" means the noncurrent records of an 26 agency that are preserved after appraisal because of their value; 27  (C) "audio-visual materials" means nonbook prerecorded 28 materials, including records, tapes, slides, transparencies, films, filmstrips, 29 cassettes, videos, compact discs, laser discs, and items that require the use of 30 equipment to render them usable; 31  (D) "network information services" means a group of resources

01 from which cataloging information, holdings records, inter-library loans, 02 acquisitions information, and other reference resources can be obtained; 03  (18) contracts for the purchase of standardized examinations for 04 licensure under AS 08; 05  (19) contracts for home health care provided under regulations adopted 06 by the Department of Health and Social Services and for adult residential care services 07 provided under regulations adopted by the Department of Health and Social Services 08 or by the Department of Administration; 09  (20) contracts for supplies or services for research projects funded by 10 money received from the federal government or private grants; 11  (21) guest speakers or performers for an educational or cultural activity; 12  (22) contracts of the Alaska Industrial Development and Export 13 Authority for a clean coal technology demonstration project that 14  (A) is attempting to develop a coal-fired electric generation 15 project; 16  (B) uses technology that is capable of commercialization during 17 the 1990s [1990'S]; and 18  (C) qualifies for federal financial participation under P.L. 99- 19 190 as amended; 20  (23) disposals of supplies acquired through foreclosure of loans issued 21 under AS 03.10; 22  (24) purchases of curatorial and conservation services to maintain, 23 preserve, and interpret 24  (A) objects of art; and 25  (B) items having cultural, historical, or archaeological 26 significance to the state; 27  (25) acquisition of confidential seismic survey data necessary for pre- 28 sale oil and gas lease analyses under AS 38.05.180; 29  (26) contracts for village public safety officers; 30  (27) purchases of supplies and services to support the operations of the 31 Alaska state troopers or the division of fish and wildlife protection if the procurement

01 officer for the Department of Public Safety makes a written determination that 02 publicity of the purchases would jeopardize the safety of personnel or the success of 03 a covert operation; 04  (28) expenditures when rates are set by law or ordinance; 05  (29) construction of new vessels by the Department of Transportation 06 and Public Facilities for the Alaska marine highway system; 07  (30) contracts entered into with a regional development organization; 08 in this paragraph, "regional development organization" has the meaning given in 09 AS 44.33.026; 10  (31) contracts that are to be performed in an area outside of the country 11 and that require a knowledge of the customs, procedures, rules, or laws of the area; or 12  (32) contracts that are between the Department of Law and attorneys 13 who are not employed by the state and that are for the review or prosecution of 14 possible violations of the criminal law of the state in situations where the attorney 15 general concludes that an actual or potential conflict of interest makes it inappropriate 16 for the Department of Law to review or prosecute the possible violations; 17  (33) contracts between the Department of Natural Resources and 18 contractors qualified to evaluate hydrocarbon development, production, transportation, 19 and economics, to assist the commissioner of natural resources in evaluating 20 applications for oil and gas royalty increases or decreases or other oil and gas royalty 21 adjustments, and evaluating the related financial and technical data, entered into under 22 AS 38.05.180(j). 23 * Sec. 214. AS 37.05.317 is amended to read: 24  Sec. 37.05.317. GRANTS TO UNINCORPORATED COMMUNITIES. (a) 25 When an amount is appropriated or allocated as a grant under this section to an 26 unincorporated community, it shall be disbursed as follows: 27  (1) Within 45 days after the effective date of the appropriation or 28 allocation, the Department of Community and Economic Development [REGIONAL 29 AFFAIRS] shall notify the governing body of the unincorporated community, if any, 30 that a grant is available. 31  (2) The Department of Community and Economic Development

01 [REGIONAL AFFAIRS] shall determine if there is a qualified incorporated entity in 02 the community area that will agree to receive the grant and administer it, subject to 03 terms generally applicable to private grantees. If there is more than one such entity, 04 the Department of Community and Economic Development [REGIONAL AFFAIRS] 05 shall select the most qualified and the grant shall be awarded to that incorporated 06 entity for the purposes specified in the appropriation act. However, the Department 07 of Community and Economic Development [REGIONAL AFFAIRS] shall give 08 preference to a nonprofit corporation organized by a community for receipt of the 09 grant. 10  (3) If there is no incorporated entity qualified to receive the grant, the 11 Department of Community and Economic Development [REGIONAL AFFAIRS] shall 12 administer the program as specified in the appropriation act directly or through agents 13 or contractors with whom it may contract in the community area. 14  (b) The Department of Labor shall require the qualified incorporated entity 15 awarded a grant or agents or contractors with whom the Department of Community 16 and Economic Development [REGIONAL AFFAIRS] contracts under (a) of this 17 section to comply with the requirements of AS 36.10.150 - 36.10.175 for employment 18 generated by the grant or contract if the grant or contract is for a public works project. 19 * Sec. 215. AS 37.05.530(c) is amended to read: 20  (c) The Department of Natural Resources [COMMUNITY AND REGIONAL 21 AFFAIRS] shall adopt regulations under which municipalities impacted by National 22 Petroleum Reserve - Alaska oil and gas development under 42 U.S.C. 6508 may apply 23 for and be eligible to receive grants to alleviate the impact. The department shall give 24 priority in the allocation of grants to municipalities that are experiencing or will 25 experience the most direct or severe impact from oil and gas development under 42 26 U.S.C. 6508 within the National Petroleum Reserve - Alaska. The department shall 27 fund all meritorious grant applications out of the money appropriated to it each year. 28 Within 10 days after the convening of each regular session of the legislature, the 29 department shall submit to the legislature a list of all municipalities that have received 30 grants, a list of all municipalities determined by the department to be eligible for 31 further grants, a recommendation of the amount of money to be granted for those

01 additional applications, and written justification of each past and potential grant. 02 * Sec. 216. AS 37.06.010(g) is amended to read: 03  (g) For purposes of this section, in calculating the population of a borough the 04 population of each city in the borough is excluded. The determination of population 05 shall be based upon data used by the Department of Revenue [COMMUNITY AND 06 REGIONAL AFFAIRS] under AS 29.60.020. 07 * Sec. 217. AS 37.06.020(i) is amended to read: 08  (i) The limitations of AS 44.33.745 [AS 44.47.140] do not apply to a grant 09 made under this section. 10 * Sec. 218. AS 37.06.020(k) is amended to read: 11  (k) In this section, unless specified otherwise, "department" means the 12 Department of Community and Economic Development [REGIONAL AFFAIRS]. 13 * Sec. 219. 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 Revenue 17 [COMMUNITY AND REGIONAL AFFAIRS] under AS 29.60.020. 18 * Sec. 220. AS 37.06.080 is amended to read: 19  Sec. 37.06.080. ADOPTION OF REGULATIONS. The Department of 20 Administration for grants under AS 37.06.010 and the Department of Community and 21 Economic Development [REGIONAL AFFAIRS] for grants under AS 37.06.020 22  (1) may adopt regulations that impose additional requirements or 23 procedures to implement, interpret, make specific, or otherwise carry out the applicable 24 provisions of this chapter for grants administered by the department; 25  (2) shall adopt regulations providing for periodic audits of the use of 26 money for grants administered by the department under this chapter, including audit 27 of the department's determination of the value of, and adequacy of the verification of 28 the actual use of, locally funded or contributed labor on projects funded by a grant 29 under this chapter. 30 * Sec. 221. AS 37.15.110 is amended to read: 31  Sec. 37.15.110. CREATION AND MEMBERSHIP OF STATE BOND

01 COMMITTEE. There is created a committee known as the "state bond committee," 02 the members of which are the commissioner of community [COMMERCE] and 03 economic development, the commissioner of administration, and the commissioner of 04 revenue. If a member of the committee is absent or otherwise unable to act, the 05 member's designee in the department shall act as a member of the committee in the 06 member's place. 07 * Sec. 222. AS 37.15.130 is amended to read: 08  Sec. 37.15.130. OFFICERS, RECORDS AND PROCEEDINGS. The 09 commissioner of community [COMMERCE] and economic development is the chair 10 [CHAIRMAN] of the state bond committee and the commissioner of revenue is the 11 secretary. A majority of the members of the committee constitute a quorum. The 12 committee shall keep a full, complete, and permanent record of its proceedings. All 13 records and correspondence of the committee shall be kept in the office of the 14 commissioner of revenue. 15 * Sec. 223. AS 37.17.010(a) is amended to read: 16  (a) The Alaska Science and Technology Foundation is established as a public 17 corporation in the Department of Community [COMMERCE] and Economic 18 Development. 19 * Sec. 224. AS 38.06.025(a) is amended to read: 20  (a) The board consists of the commissioner of community [COMMERCE] and 21 economic development; the commissioner of revenue; the commissioner of natural 22 resources, who is a nonvoting member; and three public members. 23 * Sec. 225. AS 39.25.120(c) is amended to read: 24  (c) The following positions in the state service constitute the partially exempt 25 service: 26  (1) deputy and assistant commissioners of the principal departments of 27 the executive branch, including the assistant adjutant general of the Department of 28 Military and Veterans' Affairs; 29  (2) the directors of the major divisions of the principal departments of 30 the executive branch and the regional directors of the Department of Transportation 31 and Public Facilities;

01  (3) attorney members of the staff of the Department of Law, of the 02 public defender agency, and of the office of public advocacy in the Department of 03 Administration; 04  (4) one private secretary for each head of a principal department in the 05 executive branch; 06  (5) employees of councils, boards, or commissions established by 07 statute in the Office of the Governor or the office of the lieutenant governor, unless 08 a different classification is provided by statute; 09  (6) the executive director, deputy director, hearing officers, and 10 administrative law judges of the Alaska Public Utilities Commission; 11  (7) [REPEALED 12  (8)] not more than two special assistants to the commissioner of each 13 of the principal departments of the executive branch, but the number may be increased 14 if the partially exempt service is extended under AS 39.25.130 to include the additional 15 special assistants; 16  (8) [(9)] the principal executive officer of the following boards, 17 councils, or commissions: 18  (A) Alaska Public Broadcasting Commission; 19  (B) Professional Teaching Practices Commission; 20  (C) Parole Board; 21  (D) Board of Nursing; 22  (E) Real Estate Commission; 23  (F) Alaska Royalty Oil and Gas Development Advisory Board; 24  (G) [REPEALED 25  (H)] Alaska State Council on the Arts; 26  (H) [(I)] Alaska Police Standards Council; 27  (I) [(J)] Older Alaskans Commission; 28  (J) [(K)] Alaska Mental Health Board; 29  (K) [(L)] State Medical Board; 30  (L) [(M)] Governor's Council on Disabilities and Special 31 Education;

01  (M) [(N)] Advisory Board on Alcoholism and Drug Abuse; 02  (9) [(10)] Alaska Pioneers' Home managers; 03  (10) [(11)] hearing examiners in the Department of Revenue; 04  (11) [(12)] the comptroller in the division of treasury and the deputy 05 director of the division of insurance, Department of Revenue; 06  (12) [(13) REPEALED 07  (14)] airport managers in the Department of Transportation and Public 08 Facilities employed at the Anchorage and Fairbanks International Airports; 09  (13) [(15)] the deputy director of the division of tourism [AND THE 10 DEPUTY DIRECTOR OF THE DIVISION OF INSURANCE] in the Department of 11 Community [COMMERCE] and Economic Development; 12  (14) [(16)] the executive director and staff of the Alaska Public Offices 13 Commission; 14  (15) [(17)] the rehabilitation administrator of the Workers' 15 Compensation Board; 16  (16) [(18)] guards employed by the Department of Public Safety for 17 emergencies; 18  (17) [(19) REPEALED 19  (20) REPEALED 20  (21)] the director and deputy director of the division of international 21 trade in the Department of Community [COMMERCE] and Economic Development; 22  (18) [(22)] marine pilot coordinator of the Board of Marine Pilots; 23  (19) [(23)] employees of the unit established under AS 44.37.050; 24  (20) [(24)] guards employed by the Department of Corrections, other 25 than in state correctional facilities, to carry out the responsibility of the commissioner 26 of corrections under AS 33.30.071(b). 27 * Sec. 226. AS 39.50.200(b)(18) is amended to read: 28  (18) Local Boundary Commission (AS 44.33.810 [AS 44.47.565]); 29 * Sec. 227. AS 41.15.180(a) is amended to read: 30  (a) When the commissioner of revenue [COMMUNITY AND REGIONAL 31 AFFAIRS] receives national forest income under 16 U.S.C. 500, the commissioner

01 shall immediately pay to each organized borough in which national forest land is 02 located a share of the income from that forest; an organized borough's share of income 03 from a national forest shall be proportional to the area of the national forest located 04 within its boundaries. 05 * Sec. 228. AS 41.15.180(b) is amended to read: 06  (b) There is created as a separate account in the general fund the unorganized 07 borough national forest receipts fund. The fund consists of national forest income 08 received by the Department of Revenue [COMMUNITY AND REGIONAL 09 AFFAIRS] under 16 U.S.C. 500 for the percentage of a national forest located within 10 the unorganized borough. Seventy-five percent of the fund shall be allocated for 11 public schools and 25 percent for public roads. 12 * Sec. 229. AS 41.15.180(f) is amended to read: 13  (f) For the purpose of making distributions from the fund, the commissioner 14 of revenue [COMMUNITY AND REGIONAL AFFAIRS] shall consult with the 15 commissioner of education, for purposes of determining the number of children in 16 average daily membership in the public schools affected by this section, and the 17 commissioner of transportation and public facilities, to determine the total number of 18 road miles in the unorganized borough affected by this section. 19 * Sec. 230. AS 41.15.180(g) is amended to read: 20  (g) An organized borough, home rule city, first class city, second class city, 21 regional educational attendance area, or a municipality organized under federal law that 22 receives a national forest income payment or distribution under 16 U.S.C. 500 or this 23 section shall annually report and account to the commissioner of revenue 24 [COMMUNITY AND REGIONAL AFFAIRS] its use of the payment or distribution 25 for the purposes provided in (a) - (e) of this section. The commissioner of revenue 26 [COMMUNITY AND REGIONAL AFFAIRS] may not distribute national forest 27 income under this section to an entity in the unorganized borough that has previously 28 failed to report and account as required under this subsection. 29 * Sec. 231. AS 41.35.350(a) is amended to read: 30  (a) The duties of the commission are to 31  (1) survey, evaluate, and catalog Alaska prehistory and history materials

01 now in print; 02  (2) ascertain and register what Alaska prehistory and history work is 03 now in progress; 04  (3) identify the existing gaps in the coverage of Alaska's past in 05 presently available published works and establish priorities for bridging them; 06  (4) prepare a thematic study of Alaska's history for historic 07 preservation; 08  (5) identify the sources of Alaska's history; 09  (6) coordinate the production and publication of works that will 10 adequately present all aspects of Alaska's past; 11  (7) cooperate with the federal government in programs relating to 12 history and archaeology; 13  (8) develop criteria for the evaluation of state monuments and historic 14 sites and all real and personal property that may be considered to be of historic, 15 prehistoric, or archeological significance as would justify their acquisition and 16 ownership by the state; 17  (9) cooperate with the department in formulating and administering a 18 statewide historic sites survey under 16 U.S.C. 470-470n (P.L. 89-665, National 19 Historic Preservation Act of 1966); 20  (10) review those surveys and historic preservation plans that may be 21 required, and approve properties for nomination to the National Register as provided 22 for in 16 U.S.C. 470-470n (P.L. 89-665, National Historic Preservation Act of 1966); 23  (11) provide necessary assistance to the governor and the legislature for 24 achieving balanced and coordinated state policies and programs for the preservation 25 of the state's historic, prehistoric, and archeological resources; 26  (12) consult with local historical district commissions regarding the 27 establishment of historical districts under AS 29.55.010 - 29.55.020 and the approval 28 of project alterations under AS 45.98.040; recommend, if appropriate, the formulation 29 of additional criteria for the designation of historical districts under AS 29.55.020(b); 30 approve plans for and evaluate the suitability of specific structures for purposes of loan 31 eligibility and continuance under the historical district revolving loan fund (AS 45.98);

01 and consult with the Department of Community [COMMERCE] and Economic 02 Development relative to the adoption of regulations for historical district loans under 03 AS 45.98; 04  (13) determine the correct and most appropriate names of the lakes, 05 streams, places, and other geographic features in the state and their spelling; 06  (14) pass upon and give names to lakes, streams, places, and other 07 geographic features in the state for which no single generally acceptable name has 08 been in use; 09  (15) cooperate with local subdivisions of government and, with their 10 approval, change the names of lakes, streams, places, and other geographic features to 11 eliminate duplication of names in the state; 12  (16) prepare and publish an official state dictionary of geographic 13 names and publish it for sale, either as a complete whole or in parts when ready; and 14  (17) serve as the state representatives of the United States Board on 15 Geographic Names and cooperate with that board so that there is no conflict between 16 the state and federal designations of geographic features in the state. 17 * Sec. 232. AS 41.98.020(a) is amended to read: 18  (a) The Mineral Resource Fund Board is created within the department. The 19 board consists of the commissioner of natural resources, who is the chair 20 [CHAIRMAN] and administrative officer of the board, the commissioner of 21 community [COMMERCE] and economic development, and the commissioner of 22 revenue, who is the custodian of the fund. 23 * Sec. 233. AS 42.05.010 is amended to read: 24  Sec. 42.05.010. ALASKA PUBLIC UTILITIES COMMISSION CREATED. 25 There is created within the Department of Revenue [COMMERCE AND ECONOMIC 26 DEVELOPMENT] the Alaska Public Utilities Commission. 27 * Sec. 234. AS 42.05.351 is amended to read: 28  Sec. 42.05.351. TESTING OF APPLIANCES. The commission shall provide 29 for the examination and testing of appliances used for the measuring of a service of 30 a public utility and may purchase equipment, apparatus, and standards required for this 31 purpose. The commissioner of revenue [COMMERCE AND ECONOMIC

01 DEVELOPMENT] may assign the examination and testing function to the section of 02 weights and measures. Upon the payment of a reasonable fee established by the 03 commission, a consumer may have an appliance that is used by the consumer tested. 04 The commission shall establish by regulation allowable tolerances with respect to the 05 functioning or operation of the appliance. If the measuring appliance does not perform 06 within these tolerances, the utility concerned shall pay the costs of the test by 07 reimbursing the person requesting the test for the fee paid by that person. This 08 reimbursement shall be made no later than at the time of the next regular billing 09 following the test. 10 * Sec. 235. AS 42.30.380(5) is amended to read: 11  (5) "department" means the Department of Revenue [COMMERCE 12 AND ECONOMIC DEVELOPMENT]; 13 * Sec. 236. AS 42.40.010 is amended to read: 14  Sec. 42.40.010. ESTABLISHMENT OF THE CORPORATION. There is 15 established the Alaska Railroad Corporation. The corporation is a public corporation 16 and is an instrumentality of the state within the Department of Community 17 [COMMERCE] and Economic Development. The corporation has a legal existence 18 independent of and separate from the state. The continued operation of the Alaska 19 Railroad by the corporation as provided in this chapter is considered an essential 20 government function of the state. 21 * Sec. 237. AS 42.40.020(a) is amended to read: 22  (a) The powers of the corporation are vested in the board of directors. The 23 board consists of the commissioner of community [COMMERCE] and economic 24 development, the commissioner of transportation and public facilities, and five 25 members appointed by the governor. The five appointed members must be registered 26 voters in the state except as provided in (1) and (2) of this subsection. Except for the 27 commissioners and the member appointed under (5) of this subsection [SECTION], 28 a member may not be a state officer or employee. Appointed members shall have the 29 following qualifications: 30  (1) one member of the board shall be a person who has at least 10 31 years of experience in railroad management; a person who is not a resident of the state

01 may be appointed under this paragraph; 02  (2) one member of the board shall be or have been an executive official 03 of a United States railroad and shall be selected in accordance with any requirements 04 imposed under 49 U.S.C. (Interstate Commerce Act); a person who is not a resident 05 of the state may be appointed under this paragraph; 06  (3) at least one member shall be from each judicial district directly 07 served by the Alaska Railroad; 08  (4) one member shall have at least five years experience as an owner 09 or manager of a business in the state; 10  (5) one member shall be an employee who is a member of a bargaining 11 unit representing employees of the corporation. 12 * Sec. 238. AS 42.40.030 is amended to read: 13  Sec. 42.40.030. TERM OF OFFICE. Except for the commissioner of 14 community [COMMERCE] and economic development and the commissioner of 15 transportation and public facilities, members of the board serve for staggered terms of 16 five years each at the pleasure of the governor. 17 * Sec. 239. AS 42.40.040(a) is amended to read: 18  (a) Except for the commissioner of community [COMMERCE] and economic 19 development and the commissioner of transportation and public facilities, a vacancy 20 on the board is filled by appointment by the governor, and the appointment must be 21 confirmed by the members of the legislature in joint session. A member appointed to 22 fill a vacancy holds office for the balance of the term for which the member's 23 predecessor was appointed. 24 * Sec. 240. AS 42.45.060(a) is amended to read: 25  (a) A loan committee consisting of six [SEVEN] members is established. The 26 committee is composed of [THE COMMISSIONER OF COMMUNITY AND 27 REGIONAL AFFAIRS,] the commissioner of community [COMMERCE] and 28 economic development, the director of management and budget, or the designees of 29 the commissioners or the director, and four public members. 30 * Sec. 241. AS 42.45.060(c) is amended to read: 31  (c) The commissioner of community and economic development [REGIONAL

01 AFFAIRS] serves as chair of the committee. The committee may elect other officers 02 as necessary. A majority of the members of the committee constitute a quorum and 03 may exercise the powers of the committee. 04 * Sec. 242. AS 42.45.990(1) is amended to read: 05  (1) "department" means the Department of Community and Economic 06 Development [REGIONAL AFFAIRS]; 07 * Sec. 243. AS 43.05.230(g) is amended to read: 08  (g) The information contained in a license issued by the commissioner of 09 revenue or the commissioner of labor [COMMERCE AND ECONOMIC 10 DEVELOPMENT] under AS 43.50, AS 43.60, AS 43.65, AS 43.70, and AS 43.75 is 11 public information. 12 * Sec. 244. AS 43.10.170 is amended to read: 13  Sec. 43.10.170. AGENT FOR SERVICE OF PROCESS. (a) Every 14 nonresident person shall, as a condition precedent to severing or taking resources or 15 transacting or doing business in the state, file with the commissioner of community 16 [COMMERCE] and economic development a duly executed and notarized instrument 17 appointing the commissioner of community [COMMERCE] and economic 18 development the agent upon whom all original process may be served in any action 19 or legal proceeding resulting from the taxpayer's failure or neglect to pay state taxes 20 or license fees, and agreeing that service of the original process against the nonresident 21 taxpayer is of the same effect as if personally served on the nonresident taxpayer in 22 the state. 23  (b) The service of process shall be made by leaving a copy with the 24 commissioner of community [COMMERCE] and economic development. If legal 25 action is instituted against the nonresident taxpayer, the commissioner of community 26 [COMMERCE] and economic development shall immediately notify the nonresident 27 by sending a copy of the process by registered letter to the post office address stated 28 in the affidavit on file with the commissioner of revenue, or, if no address is stated in 29 the affidavit, to the last known address of the taxpayer. 30  (c) If a nonresident taxpayer fails to appoint the commissioner of community 31 [COMMERCE] and economic development as agent for service of process, service

01 may nevertheless be made upon the commissioner of community [COMMERCE] and 02 economic development, who shall then transmit a copy of the process by registered 03 mail to the last known address of the taxpayer, and this service is binding to the same 04 effect as if personally served on the nonresident taxpayer in the state. 05 * Sec. 245. AS 43.70.110(2) is amended to read: 06  (2) "commissioner" means the commissioner of labor [COMMERCE 07 AND ECONOMIC DEVELOPMENT]; 08 * Sec. 246. AS 43.70.110(3) is amended to read: 09  (3) "department" means the Department of Labor [COMMERCE AND 10 ECONOMIC DEVELOPMENT]; 11 * Sec. 247. AS 43.75.137 is amended to read: 12  Sec. 43.75.137. ADDITIONAL REFUND. To the extent that appropriations 13 are available for the purpose, and notwithstanding the requirement of AS 37.07.080(e) 14 that approval of the office of management and budget is required, an amount equal to 15 50 percent of the tax revenue that is collected under this chapter from fisheries 16 businesses and is not subject to division with a municipality under AS 43.75.130 shall 17 be disbursed [TRANSMITTED] each fiscal year, without the approval of the office 18 of management and budget, by the department [TO THE DEPARTMENT OF 19 COMMUNITY AND REGIONAL AFFAIRS FOR DISBURSAL] to eligible 20 municipalities under AS 29.60.450. 21 * Sec. 248. AS 43.76.015(a) is amended to read: 22  (a) A qualified regional association may conduct an election under this section 23 after the commissioner of revenue [COMMERCE AND ECONOMIC 24 DEVELOPMENT] approves the 25  (1) [THE] notice to be published by the qualified regional association; 26  (2) [THE] ballot to be used in the election; and 27  (3) [THE] registration and voting procedure for the approval or 28 termination of the salmon enhancement tax. 29 * Sec. 249. AS 43.76.015(b) is amended to read: 30  (b) The salmon enhancement tax is levied under AS 43.76.010, 43.76.011, or 31 43.76.012 in a region on the effective date stated on the ballot if

01  (1) it is approved by a majority vote of the eligible interim-use permit 02 and entry permit holders voting in an election held under this section in the region; and 03  (2) the election results are certified by the commissioner of revenue 04 [COMMERCE AND ECONOMIC DEVELOPMENT]. 05 * Sec. 250. AS 43.76.015(c) is amended to read: 06  (c) In conducting an election under this section, a qualified regional association 07 shall adopt the following procedures: 08  (1) the qualified regional association for the region shall hold at least 09 one public meeting not less than 30 days before the date on which ballots must be 10 postmarked to be counted in the election to explain the reason for the proposed salmon 11 enhancement tax and to explain the registration and voting procedure to be used in the 12 election; the qualified regional association shall provide notice of the meeting by 13  (A) mailing the notice to each eligible interim-use permit and 14 entry permit holder; 15  (B) posting the notice in at least three public places in the 16 region; and 17  (C) publishing the notice in at least one newspaper of general 18 circulation in the region at least once a week for two consecutive weeks before 19 the meeting; 20  (2) the qualified regional association shall mail two ballots to each 21 eligible interim-use permit and entry permit holder; the first ballot shall be mailed not 22 more than 45 days before the dates ballots must be postmarked to be counted in the 23 election; the second ballot shall be mailed not less than 15 days before the date ballots 24 must be postmarked to be counted in the election; the qualified regional association 25 shall adopt procedures to ensure that only one ballot from each eligible interim-use 26 permit and entry permit holder is counted in the election; 27  (3) the ballot must 28  (A) indicate whether the election relates to a salmon 29 enhancement tax under AS 43.76.010, to a salmon enhancement tax under 30 AS 43.76.011, or to a salmon enhancement tax under AS 43.76.012; 31  (B) ask the question whether the salmon enhancement tax shall

01 be levied; 02  (C) indicate the boundaries of the region in which the salmon 03 enhancement tax will be levied; 04  (D) provide an effective date for the levy of the salmon 05 enhancement tax; and 06  (E) indicate the date on which returned ballots must be 07 postmarked in order to be counted; 08  (4) the ballots shall be returned by mail and shall be counted by the 09 commissioner of revenue [COMMERCE AND ECONOMIC DEVELOPMENT] or by 10 a person approved by the commissioner of revenue [COMMERCE AND ECONOMIC 11 DEVELOPMENT]. 12 * Sec. 251. AS 43.76.015(d) is amended to read: 13  (d) The commissioner of revenue [COMMERCE AND ECONOMIC 14 DEVELOPMENT] shall certify the results of an election under this section if the 15 commissioner determines that the requirements of (a) and (c) of this section have been 16 satisfied. 17 * Sec. 252. AS 43.76.020(b) is amended to read: 18  (b) A salmon enhancement tax shall be terminated by the commissioner of 19 revenue under (a) of this section following an election in a region if 20  (1) a petition is presented to the commissioner of revenue 21 [COMMERCE AND ECONOMIC DEVELOPMENT] requesting termination of the 22 salmon enhancement tax that [WHICH] is signed by at least 25 percent of the number 23 of persons who voted under AS 43.76.015 in the election approving the salmon 24 enhancement tax in the region; 25  (2) the commissioner of revenue [COMMERCE AND ECONOMIC 26 DEVELOPMENT] determines that there are no outstanding loans to the qualified 27 regional association under AS 16.10.510 that are secured by the tax; 28  (3) an election is held in accordance with AS 43.76.015; the ballot must 29 ask the question whether the salmon enhancement tax for the region shall be 30 terminated; the ballot must be worded so that a "yes" vote is for continuation of the 31 salmon enhancement tax and a "no" vote is for termination of the salmon enhancement

01 tax; 02  (4) a majority of the eligible interim-use permit and entry permit 03 holders who vote in the election cast a ballot for the termination of the salmon 04 enhancement tax; and 05  (5) the qualified regional association provides notice of the election in 06 accordance with AS 43.76.015 within two months after receiving notice from the 07 commissioner of revenue [COMMERCE AND ECONOMIC DEVELOPMENT] that 08 a valid petition under (1) of this subsection has been received. 09 * Sec. 253. AS 43.76.025(c) is amended to read: 10  (c) The salmon enhancement tax collected under AS 43.76.010 - 43.76.030 11 shall be deposited in the general fund. The legislature may make appropriations based 12 on this revenue to the Department of Community [COMMERCE] and Economic 13 Development for the purpose of providing financing for qualified regional associations. 14 The legislature may base an appropriation for a qualified regional association operating 15 within a region designated under AS 16.10.375 on the value of the fisheries resources 16 caught in that region rather than the value of the fisheries resources sold in that region 17 if those values differ. 18 * Sec. 254. AS 43.76.030 is amended to read: 19  Sec. 43.76.030. ACCOUNTING OF FINANCING RECEIVED AS A RESULT 20 OF THE SALMON ENHANCEMENT TAX. A qualified regional association 21 requesting state financial assistance in accordance with AS 43.76.025(c) shall submit 22 an annual financial report to the Department of Revenue [COMMERCE AND 23 ECONOMIC DEVELOPMENT] on a form provided by the Department of Revenue 24 [COMMERCE AND ECONOMIC DEVELOPMENT]. The Department of Revenue 25 [COMMERCE AND ECONOMIC DEVELOPMENT] may, by regulation, require that 26 a qualified regional association use a uniform system of accounting. A qualified 27 regional association requesting state assistance shall submit an annual budget to the 28 Department of Community [COMMERCE] and Economic Development on or before 29 a date specified by the Department of Community [COMMERCE] and Economic 30 Development. 31 * Sec. 255. AS 43.77.040(b) is amended to read:

01  (b) A taxpayer who makes a contribution that qualifies for the credit 02 authorized by (a) of this section must apply to obtain the credit. The taxpayer shall 03 apply to the department in the manner provided by the department by regulation, and 04 shall provide to the commissioner all information relating to the contribution that may 05 be required by the department. Upon receipt of a complete application, the 06 department, in consultation with the Department of Community and Economic 07 Development [REGIONAL AFFAIRS], shall approve or disapprove the application for 08 the credit within 60 days. 09 * Sec. 256. AS 43.77.060(d) is amended to read: 10  (d) To the extent that appropriations are available for the purpose, and 11 notwithstanding the requirement of AS 37.07.080(e) that approval of the office of 12 management and budget is required, an amount equal to 50 percent of the tax revenue 13 that is collected under this chapter and is not subject to division with a municipality 14 under (a) - (c) of this section shall be disbursed [TRANSMITTED] each fiscal year, 15 without the approval of the office of management and budget, by the department [TO 16 THE DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS FOR 17 DISBURSAL] to eligible municipalities under AS 29.60.450. 18 * Sec. 257. AS 44.17.005(8) is amended to read: 19  (8) Department of Community [COMMERCE] and Economic 20 Development 21 * Sec. 258. AS 44.19.145(a) is amended to read: 22  (a) The office shall 23  (1) provide technical assistance to the governor and the legislature in 24 identifying long range goals and objectives for the state and its political subdivisions; 25  (2) prepare and maintain a state comprehensive development plan; 26  (3) provide information and assistance to state agencies to aid in 27 governmental coordination and unity in the preparation of agency plans and programs; 28  (4) review planning within state government as may be necessary for 29 receipt of federal, state, or other funds; 30  (5) participate with other countries, provinces, states, or subdivisions 31 of them in international or interstate planning, and assist the state's local governments,

01 governmental conferences, and councils in planning and coordinating their activities; 02  (6) encourage educational and research programs that further state 03 planning and development, and provide administrative and technical services for them; 04  (7) publish the [SUCH] statistical information or other documentary 05 material that [AS] will further the provisions and intent of AS 44.19.141 - 44.19.152; 06  (8) assist the governor and the Department of Community and 07 Economic Development [REGIONAL AFFAIRS] in coordinating state agency 08 activities that have an effect on the solution of local and regional development 09 problems; 10  (9) serve as a clearinghouse for information, data, and other materials 11 that may be helpful or necessary to federal, state, or local governmental agencies in 12 discharging their respective responsibilities or in obtaining federal or state financial or 13 technical assistance; 14  (10) review all proposals for the location of capital improvements by 15 any state agency and advise and make recommendations concerning location of these 16 capital improvements; 17  (11) render, on behalf of the state, all federal consistency 18 determinations and certifications authorized by 16 U.S.C. 1456 (Sec. 307, Coastal Zone 19 Management Act of 1972), and each conclusive state consistency determination when 20 a project requires a permit, lease, or authorization from two or more state resource 21 agencies. 22 * Sec. 259. AS 44.19.155(a) is amended to read: 23  (a) There is created in the Office of the Governor the Alaska Coastal Policy 24 Council. The council consists of the following: 25  (1) nine public members appointed by the governor from a list 26 comprised of at least three names from each region, nominated by the municipalities 27 of each region; the nominees shall be the mayor or member of the assembly or council 28 of a municipality; one public member shall be appointed from each of the following 29 general regions: 30  (A) northwest Alaska, including, generally, the area of the North 31 Slope Borough and the Northwest Arctic regional educational attendance area;

01  (B) Bering Straits, including, generally, the area of the Bering 02 Straits regional educational attendance area; 03  (C) southwest Alaska, including, generally, the area within the 04 Lower Yukon, Lower Kuskokwim, Southwest, and Lake and [&] Peninsula 05 regional educational attendance areas and the Bristol Bay Borough; 06  (D) Kodiak-Aleutians, including the area of the Kodiak Island 07 Borough and the Aleutian, Adak and Pribilof regional educational attendance 08 areas; 09  (E) Upper Cook Inlet, including the Municipality of Anchorage 10 and the Matanuska-Susitna Borough; 11  (F) Lower Cook Inlet, including, generally, the area within the 12 Kenai Peninsula Borough; 13  (G) Prince William Sound, including, generally, the area east 14 of the Kenai Peninsula Borough to 141 W. longitude; 15  (H) northern Southeast Alaska, including the area southeast of 16 141 W. longitude and north of 57 N. latitude, including the entirety of the City 17 and Borough of Sitka; and 18  (I) southern Southeast Alaska, including that portion of 19 southeastern Alaska not contained within the area described in (H) of this 20 paragraph; 21  (2) each of the following: 22  (A) the director of the office of management and budget; 23  (B) the commissioner of community [COMMERCE] and 24 economic development; 25  (C) [THE COMMISSIONER OF COMMUNITY AND 26 REGIONAL AFFAIRS; 27  (D)] the commissioner of environmental conservation; 28  (D) [(E)] the commissioner of fish and game; 29  (E) [(F)] the commissioner of natural resources; and 30  (F) [(G)] the commissioner of transportation and public 31 facilities.

01 * Sec. 260. AS 44.19.155(d) is amended to read: 02  (d) Each member of the council shall select one person to serve as a 03 permanent alternate at meetings of the council. If a member of the council is unable 04 to attend, the member shall advise the alternate who may attend and act in the place 05 of the member. The alternate for a public member appointed under (a)(1) of this 06 section shall, at the time of the alternate's designation and throughout the period of 07 service as a permanent alternate, be the mayor or member of the assembly or council 08 of a municipality within the region from which the permanent member is appointed. 09 The alternate for the director of the office of management and budget, serving under 10 (a)(2)(A) of this section, shall be the director's designee within that office. The 11 alternate for a designated member serving under (a)(2)(B) - (F) [(a)(2)(B) - (G)] of this 12 section shall be a deputy commissioner of the department or the director of a division 13 in the department. The names of alternates shall be filed with the council. 14 * Sec. 261. AS 44.21.200(a) is amended to read: 15  (a) The Alaska Commission on Aging is established in the Department of 16 Administration. The members of the commission include 17  (1) the commissioner of administration or the commissioner's designee; 18  (2) the commissioner of community and economic development 19 [REGIONAL AFFAIRS] or the commissioner's designee; 20  (3) the commissioner of health and social services or the 21 commissioner's designee; 22  (4) the chair of the Pioneers' Homes Advisory Board under 23 AS 44.21.120; and 24  (5) seven persons selected on the basis of their knowledge and 25 demonstrated interest in the concerns of older Alaskans, appointed by the governor in 26 accordance with (b) of this section. 27 * Sec. 262. AS 44.21 is amended by adding new sections to read: 28 ARTICLE 7A. COMMUNITY LEGAL ASSISTANCE GRANTS. 29  Sec. 44.21.475. COMMUNITY LEGAL ASSISTANCE GRANT FUND. 30 There is created in the department the community legal assistance grant fund. From 31 legislative appropriations to the fund, the department shall make grants to eligible

01 communities and regions for the purpose of enabling them to obtain legal assistance. 02  Sec. 44.21.480. ELIGIBILITY. First and second class cities and 03 unincorporated villages, and regional associations of those communities, may apply to 04 the department for a grant under AS 44.21.475. Grants shall be made only to those 05 communities or regions that would otherwise be unable to obtain legal assistance. A 06 regional or village corporation formed under 43 U.S.C. 1601 - 1608 (Alaska Native 07 Claims Settlement Act) is not eligible for a grant under AS 44.21.475. 08  Sec. 44.21.485. GRANTS. Grants made under AS 44.21.475 shall be used for 09 a single legal project and not for the provision of general legal counsel. The 10 department shall assure that the grant is spent for necessary legal assistance and that 11 appropriate accounting procedures are maintained. Grants may not exceed $20,000. 12  Sec. 44.21.490. REGULATIONS. The department shall adopt regulations to 13 carry out the purposes of AS 44.21.475 - 44.21.499. 14  Sec. 44.21.499. DEFINITIONS. In AS 44.21.475 - 44.21.499, 15  (1) "commissioner" means the commissioner of administration; 16 (2) "department" means the Department of Administration. 17 * Sec. 263. AS 44.25.020 is amended to read: 18  Sec. 44.25.020. DUTIES OF DEPARTMENT. The Department of Revenue 19 shall 20  (1) enforce the tax laws of the state; 21  (2) collect, account for, have custody of, invest, and manage all state 22 funds and all revenues of the state except revenues incidental to a program of licensing 23 and regulation carried on by another state department and funds managed and invested 24 by the Alaska State Pension Investment Board; 25  (3) register cattle brands; 26  (4) supply necessary clerical and administrative services for the 27 Alcoholic Beverage Control Board; 28  (5) invest and manage the balance of the power development fund in 29 accordance with AS 44.83.386; 30  (6) in accordance with the policies established by the board of trustees 31 of the Alaska State Pension Investment Board, collect, account for, have custody of,

01 invest, and manage the state funds for which the board is responsible; 02  (7) administer the surety bond program for licensure as a fish processor 03 or primary fish buyer; 04  (8) register corporations; 05  (9) collect corporation franchise taxes; 06  (10) enforce state laws regulating public utilities and other public 07 service enterprises, banking and securities, insurance, and other businesses and 08 enterprises touched with a public interest. 09 * Sec. 264. AS 44.25.020 is amended by adding a new subsection to read: 10  (b) The Department of Revenue may 11  (1) administer state and, as appropriate, federal programs for revenue 12 sharing, grants, and other forms of financial assistance to community and regional 13 governments; and 14  (2) advise and assist municipalities on procedures of assessment, 15 valuation, and taxation, and notify municipalities of major errors in those procedures. 16 * Sec. 265. AS 44.27.020 is amended to read: 17  Sec. 44.27.020. DUTIES OF DEPARTMENT. The Department of Education 18 shall 19  (1) administer the state's program of education at the elementary, 20 secondary, and adult levels, including, but not limited to, programs of vocational 21 education and training, vocational rehabilitation, library services, correspondence 22 courses, and adult basic education, but not including degree programs of postsecondary 23 education; 24  (2) administer the historical library; 25  (3) plan, finance, and operate related school and educational activities 26 and facilities; 27  (4) operate the head start funding program governed by 42 U.S.C. 28 9835. 29 * Sec. 266. AS 44.31.020 is amended to read: 30  Sec. 44.31.020. DUTIES OF DEPARTMENT. The Department of Labor shall 31  (1) enforce the laws, and adopt regulations under them concerning

01 employer-employee relationships, including the safety, hours of work, wages, and 02 conditions of workers, including children; 03  (2) accumulate, analyze, and report labor statistics; 04  (3) operate systems of workers' compensation and unemployment 05 insurance; and 06  (4) gather data reflecting the cost of living in the various election 07 districts of the state upon request of the director of personnel under AS 39.27.030 - 08 39.27.040; 09  (5) furnish the budgeting, clerical, and administrative services for 10 regulatory agencies and professional and occupational licensing boards not 11 otherwise provided for; 12  (6) provide administrative and budgetary services to the Real 13 Estate Commission under AS 08.88 as requested by the commission; 14  (7) administer state laws relating to the issuance of business 15 licenses; and 16  (8) operate the federally funded employment and training programs 17 under 29 U.S.C. 1501 - 1792b (Job Training Partnership Act). 18 * Sec. 267. AS 44.33.010 is amended to read: 19  Sec. 44.33.010. COMMISSIONER OF COMMUNITY [COMMERCE] AND 20 ECONOMIC DEVELOPMENT. The principal executive officer of the Department of 21 Community [COMMERCE] and Economic Development is the commissioner of 22 community [COMMERCE] and economic development. 23 * Sec. 268. AS 44.33.020 is amended to read: 24  Sec. 44.33.020. DUTIES OF DEPARTMENT. The Department of 25 Community [COMMERCE] and Economic Development shall 26  (1) administer the state programs relating to commerce, enforce the 27 laws relating to these programs, and adopt regulations under these laws; 28  (2) [REGISTER CORPORATIONS; 29  (3) COLLECT CORPORATION FRANCHISE TAXES; 30  (4) ENFORCE STATE LAWS REGULATING PUBLIC UTILITIES 31 AND OTHER PUBLIC SERVICE ENTERPRISES, BANKING AND SECURITIES,

01 INSURANCE, AND OTHER BUSINESSES AND ENTERPRISES TOUCHED WITH 02 A PUBLIC INTEREST; 03  (5)] make veterans' loans; 04  (3) [(6) INSPECT WEIGHTS AND MEASURES; 05  (7)] promote and develop civil aviation; 06  (4) [(8) FURNISH THE BUDGETING, CLERICAL, AND 07 ADMINISTRATIVE SERVICES FOR REGULATORY AGENCIES AND 08 PROFESSIONAL AND OCCUPATIONAL LICENSING BOARDS NOT 09 OTHERWISE PROVIDED FOR; 10  (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  (5) [(13)] provide factual information and technical assistance for 17 potential industrial and commercial investors; 18  (6) [(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  (7) [(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  (8) [(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  (9) [(17)] cooperate with private, governmental, and other public 28 institutions and agencies in the execution of economic development programs; 29  (10) [(18)] review the programs and annual reports of other 30 departments and agencies as they are related to economic development and prepare an 31 annual report on the economic growth of the state;

01  (11) [(19)] administer the economic development programs of the 02 state; 03  (12) [(20)] perform all other duties and powers necessary or proper in 04 relation to economic development and planning for the state; 05  (13) [(21)] request tourism-related businesses in the state to provide 06 data regarding occupancy levels, traffic flow, and gross receipts and to participate in 07 visitor surveys conducted by the department; data collected under this paragraph that 08 [WHICH] discloses the particulars of an individual business is not a matter of public 09 record and shall be kept confidential; however, this restriction does not prevent the 10 department from using the data to formulate tourism economic impact information 11 including expenditure patterns, tax receipts and fees, employment and income 12 attributable to tourism, and other information considered relevant to the planning, 13 evaluation, and policy direction of tourism in the state; 14  (14) [(22) REPEALED 15  (23) REPEALED 16  (24) PROVIDE ADMINISTRATIVE AND BUDGETARY SERVICES 17 TO THE REAL ESTATE COMMISSION UNDER AS 08.88 AS REQUESTED BY 18 THE COMMISSION; 19  (25) OPERATE MOTOR VEHICLE WEIGHING STATIONS, ISSUE 20 SPECIAL WRITTEN PERMITS AUTHORIZING THE OPERATION OF 21 OVERWEIGHT AND OVERSIZE VEHICLES, ESTABLISH FEES FOR THE 22 OVERWEIGHT AND OVERSIZE VEHICLE SPECIAL PERMITS, ENFORCE THE 23 SIZE, WEIGHT, AND LOAD LIMITATIONS ADOPTED BY THE DEPARTMENT 24 OF TRANSPORTATION AND PUBLIC FACILITIES UNDER AS 19.10.060, AND 25 ESTABLISH REGULATIONS RELATING TO PILOT CAR SERVICES AND THE 26 ENFORCEMENT OF THE SIZE, WEIGHT, AND LOAD LIMITATIONS ADOPTED 27 UNDER AS 19.10.060; 28  (26) REPEALED 29  (27) IMPLEMENT THE SAFETY AND FINANCIAL 30 RESPONSIBILITY REQUIREMENTS FOR AIR CARRIERS UNDER AS 42.30.200 - 31 42.30.380;

01  (28)] sell at cost, to the extent possible, publications and promotional 02 materials developed by the department; 03  (15) [(29)] as delegated by the governor, administer under 16 U.S.C. 04 1856 the internal waters foreign processing permit procedures and collect related fees; 05  (16) [(30) ADMINISTER STATE LAWS RELATING TO THE 06 ISSUANCE OF BUSINESS LICENSES; 07  (31) REPEALED 08  (32)] administer the neighborhood revitalization and development 09 program under AS 44.33.436 - 44.33.438; 10  (17) [(33)] foster the growth of international trade within the state and 11 administer Alaska foreign offices; and 12  (18) comply with AS 15.07.055 to serve as a voter registration 13 agency to the extent required by state and federal law, including 42 U.S.C. 1973gg 14 (National Voter Registration Act of 1993). 15 * Sec. 269. AS 44.33.020 is amended by adding a new subsection to read: 16  (b) The department may 17  (1) advise and assist local governments; 18  (2) serve as staff for the Local Boundary Commission; 19  (3) conduct studies and carry out experimental and pilot projects for the 20 purpose of developing solutions to community and regional problems; 21  (4) promote cooperative solutions to problems affecting more than one 22 community or region, including joint service agreements, regional compacts, and other 23 forms of cooperation; 24  (5) serve as a clearinghouse for information useful in solution of 25 community and regional problems, and channel to the appropriate authority requests 26 for information and services; 27  (6) advise and assist community and regional governments on matters 28 of finance, including but not limited to bond marketing and procurement of federal 29 funds; 30  (7) prepare suggested guidelines relating to the content of notice of 31 bond sale advertisements, prospectuses, and other bonding matters issued by local

01 governments; 02  (8) administer state funds appropriated for the benefit of unorganized 03 regions within the state, allowing for maximum participation by local advisory councils 04 and similar bodies; 05  (9) carry out those administrative functions in the unorganized borough 06 that the legislature may prescribe; 07  (10) study existing and proposed laws and state activities that affect 08 community and regional affairs and submit to the governor recommended changes in 09 those laws and activities; 10  (11) coordinate activities of the state that affect community and 11 regional affairs; 12  (12) assist in the development of new communities and serve as the 13 agent of the state for purposes of participation in federal programs relating to new 14 communities; 15  (13) supervise planning, management, and other activities required for 16 local eligibility for financial aid under those federal and state programs that provide 17 assistance to community and regional governments; 18  (14) apply for, receive, and use funds from federal and other sources, 19 public or private, for use in carrying out the powers and duties of the department; 20  (15) request and utilize the resources of other agencies of state 21 government in carrying out the purposes of this chapter to the extent such utilization 22 is more efficient than maintaining departmental staff, reimbursing the other agencies 23 when appropriate; 24  (16) carry out the powers and duties assigned it under AS 42.45; and 25  (17) carry out other functions and duties, consistent with law, necessary 26 or appropriate to accomplish the purpose of this chapter. 27 * Sec. 270. AS 44.33.026(e)(1) is amended to read: 28  (1) "department" means the Department of Community [COMMERCE] 29 and Economic Development; 30 * Sec. 271. AS 44.33 is amended by adding new sections to read: 31  Sec. 44.33.035. FEES FOR PUBLICATIONS, RESEARCH DATA, AND

01 OTHER SERVICES. The commissioner may establish by regulation and the 02 department may charge reasonable fees for department publications, research data, and 03 other centralized administrative services to cover the cost of reproduction, printing, 04 mailing, distribution, and other centralized administrative services. 05  Sec. 44.33.090. DEFINITIONS. In AS 44.33.010 - 44.33.090, 06  (1) "commissioner" means the commissioner of community and 07 economic development; 08  (2) "department" means the Department of Community and Economic 09 Development. 10 * Sec. 272. AS 44.33.120(a) is amended to read: 11  (a) There is created in the Department of Community [COMMERCE] and 12 Economic Development the Alaska division of tourism. The director of tourism is 13 appointed by the commissioner of community [COMMERCE] and economic 14 development and serves at the pleasure of the commissioner. 15 * Sec. 273. AS 44.33.135(b) is amended to read: 16  (b) The commissioner of community [COMMERCE] and economic 17 development shall adopt regulations to carry out the provisions of this section. 18 * Sec. 274. AS 44.33.285 is amended to read: 19  Sec. 44.33.285. ACTION BY GOVERNOR. The governor may, upon 20 recommendation of the commissioner of community [COMMERCE] and economic 21 development, designate by proclamation an area as an area impacted by an economic 22 disaster. When an area is so designated, the legislature may appropriate money for 23 assistance grants and the governor may recommend in the governor's budget 24 submission that capital projects planned for the area be accelerated and that new 25 projects be funded for the area. The proclamation may provide that waivers of capital 26 projects requirements, as authorized in AS 44.33.300, become effective only to the 27 extent set out in the proclamation. 28 * Sec. 275. AS 44.33.310(2) is amended to read: 29  (2) "department" means the Department of Community [COMMERCE] 30 and Economic Development; 31 * Sec. 276. AS 44.33.438(1) is amended to read:

01  (1) "commissioner" means the commissioner of community 02 [COMMERCE] and economic development; 03 * Sec. 277. AS 44.33.438(3) is amended to read: 04  (3) "department" means the Department of Community [COMMERCE] 05 and Economic Development; 06 * Sec. 278. AS 44.33.501 is amended to read: 07  Sec. 44.33.501. PROGRAM OF COMPETITIONS. (a) The Department of 08 Community [COMMERCE] and Economic Development shall direct a continuing 09 program of competitions. The competitions shall be held each summer to select 10 outstanding examples of Alaskan Native arts and crafts. 11  (b) The Department of Community [COMMERCE] and Economic 12 Development, after consulting with a committee from the Alaska Native Brotherhood 13 and Sisterhood appointed by their councils from among the memberships of those 14 organizations, shall adopt regulations for the competitions, providing for, but not 15 limited to the following: 16  (1) eligibility requirements for entrants; 17  (2) categories for entry, such as basketwork, wood carving, pottery, 18 stone work, ivory work, painting, etc.; 19  (3) criterion for selecting category winners and grand prize winners; 20  (4) transportation and display of entries; 21  (5) prizes and awards for winning entrants that [WHICH] are restricted 22 to ribbons, cups, plaques, etc.; 23  (6) preparation of entry forms that 24  (A) give the name and mailing address of the entrant, 25  (B) show that each entry is the work of the entrant, 26  (C) give the minimum price that the entrant will accept for the 27 entry, 28  (D) provide the entrant with a choice of having the entry sold, 29 retained for display by the state, or returned to the entrant, and 30  (E) identify and describe the entry; and 31  (7) restricting the entrant from entering competitions in more than one

01 region. 02 * Sec. 279. AS 44.33.503 is amended to read: 03  Sec. 44.33.503. PLACE OF COMPETITION. The Department of Community 04 [COMMERCE] and Economic Development shall solicit invitations from the larger 05 communities in each of the regions for holding the regional competition. The 06 community in each region that [WHICH] offers the best facilities and the greatest 07 measure of cooperation for conducting the competition shall be selected as the location 08 of the regional competition. 09 * Sec. 280. AS 44.33.504 is amended to read: 10  Sec. 44.33.504. JUDGES. Judges at the regional competitions shall be selected 11 by the Department of Community [COMMERCE] and Economic Development and 12 composed of a panel of five, two of whom shall be selected from nominees of the 13 Alaska Native Brotherhood and Sisterhood and three of whom shall be selected by the 14 department on the basis of their knowledge and appreciation of Alaskan Native arts 15 and crafts and of art in general. 16 * Sec. 281. AS 44.33.506 is amended to read: 17  Sec. 44.33.506. OTHER DISPLAYS. The Department of Community 18 [COMMERCE] and Economic Development may display or authorize the display of 19 entries at places other than the regional competitions. 20 * Sec. 282. AS 44.33.507 is amended to read: 21  Sec. 44.33.507. GRANTS AND ASSISTANCE. The Department of 22 Community [COMMERCE] and Economic Development may accept grants of money 23 and other assistance from private persons or groups, from political subdivisions of the 24 state, or from others to conduct and promote annual competitions and displays. 25 * Sec. 283. AS 44.33.700 is amended to read: 26  Sec. 44.33.700. ALASKA TOURISM MARKETING COUNCIL 27 ESTABLISHED. The Alaska Tourism Marketing Council is established as a public 28 corporation of the state. It is an instrumentality of the state in the Department of 29 Community [COMMERCE] and Economic Development, but has a legal existence 30 independent of and separate from the state. Exercise by the council of the powers 31 conferred by AS 44.33.700 - 44.33.735 is an essential governmental function of the

01 state. 02 * Sec. 284. AS 44.33.705(a) is amended to read: 03  (a) Unless the commissioner contracts with a qualified trade association under 04 (b) of this section, the governing body of the council is a board of directors consisting 05 of the director of tourism, the commissioner of community [COMMERCE] and 06 economic development, and the commissioner of another principal executive 07 department designated by the governor. 08 * Sec. 285. AS 44.33.720(a) is amended to read: 09  (a) The council shall 10  (1) conduct a tourism marketing program designed to accomplish the 11 purposes of AS 44.33.700 - 44.33.735; the marketing program must include promotion 12 of the state as a destination and promotion of all forms of travel to the state, including 13 travel by air, highway, and water; 14  (2) prepare and implement plans for the promotion of Alaska tourism, 15 including necessary research; 16  (3) submit an annual report to the governor describing the activities of 17 the council and notify the legislature that the report is available; 18  (4) make available to all interested persons, including tourism 19 businesses, a quarterly report of the council's actions and activities; 20  (5) annually submit a proposed operating budget to the director, to be 21 used by the Department of Community [COMMERCE] and Economic Development 22 to prepare and submit the operating budget of the council under AS 44.33.725; 23  (6) provide advice, on the request of the director of tourism, on the 24 programs of the division; 25  (7) prepare a report by the 10th day of each regular session of the 26 legislature describing how the contractual money was spent in the first half of the year 27 and explaining the plan for expenditures during the second half of the year; the council 28 shall notify the legislature that the report is available; 29  (8) consider methods to fund tourism marketing using both public and 30 private assets; and 31  (9) consider methods of providing for the financial self-sufficiency of

01 the council. 02 * Sec. 286. AS 44.33.735(2) is amended to read: 03  (2) "commissioner" means the commissioner of community 04 [COMMERCE] and economic development; 05 * Sec. 287. AS 44.33 is amended by adding new sections to read: 06 ARTICLE 8A. RURAL DEVELOPMENT. 07  Sec. 44.33.740. POWERS AND DUTIES. To promote development of rural 08 areas of the state, the department is authorized to 09  (1) investigate social and economic conditions of rural areas to 10 determine the need to expand economic opportunities and improve living conditions; 11  (2) formulate a coordinated program to broaden and diversify the 12 economic base of rural areas; 13  (3) coordinate administration of emergency relief, surplus food 14 distribution, or other public assistance programs, except the regular relief and 15 assistance programs of the federal government in rural areas; 16  (4) formulate and conduct a program of construction of basic facilities 17 to improve health, welfare, and economic security and provide employment and 18 income in the rural areas; 19  (5) promote training and educational programs designed to expand 20 employment opportunities for residents of rural areas; 21  (6) enter into agreements with other state agencies and departments to 22 provide for the distribution in rural communities of surplus electrical power from state- 23 owned power sources located in those communities and to expend funds for this purpose; 24  (7) make grants to communities for bulk fuel storage facilities; 25  (8) cooperate with the Department of Environmental Conservation and 26 other agencies to provide technical assistance to communities in the installation, 27 operation, and management of bulk fuel storage facilities. 28  Sec. 44.33.745. LIMITATIONS. A program of the department under 29 AS 44.33.740 in a rural area may not exceed $100,000 in cost a year. 30  Sec. 44.33.750. BULK FUEL STORAGE FACILITIES GRANT FUND. (a) 31 There is established in the department the bulk fuel storage facilities grant fund.

01 Grants may be made by the department from this fund to a community to acquire and 02 install community bulk storage facilities. 03  (b) Grants made under this section for the acquisition and installation of a bulk 04 fuel storage facility may not exceed $100,000 per community. 05  (c) If the governing body of two or more communities determine that their fuel 06 requirements may be served by a single bulk fuel storage facility, the communities 07 may jointly apply for grants to acquire and install a single bulk fuel storage facility. 08 When communities apply jointly under this subsection, the limitation in (b) of this 09 section is multiplied by the number of communities that submit the joint application. 10  (d) Before a grant is made under this section, the city council or, if the 11 community is not incorporated, a reasonable representative body in the community 12 shall agree in writing to maintain and operate the bulk storage facility to be 13 constructed with the proceeds of the grant. 14  Sec. 44.33.755. LAND CONVEYED IN TRUST. (a) The commissioner 15  (1) shall accept, administer, and dispose of land conveyed to the state 16 in trust by village corporations under 43 U.S.C. 1613(c)(3) (Sec. 14(c)(3) of the Alaska 17 Native Claims Settlement Act) for the purposes specified in that section; 18  (2) may, with the concurrence of an appropriate village entity 19 recognized by the commissioner under (b) of this section or, in the absence of an 20 appropriate village entity, under procedures prescribed by regulations of the 21 commissioner, accept, administer, and dispose of land conveyed in trust by a state or 22 federal agency and by the dissolution of a municipality under AS 29.06.450 - 23 29.06.530. 24  (b) Transfer of land by sale, lease, right-of-way, easement, or permit, including 25 transfer of surface resources, may be made by the commissioner only after approval 26 of an appropriate village entity such as the traditional council, a village meeting, or a 27 village referendum. This approval shall be by resolution filed with the department. 28  (c) Within one complete state fiscal year after the incorporation of a 29 municipality in the village or of a municipality that includes all or part of the village, 30 land acquired under this section shall be conveyed without cost to the municipality, 31 and the municipality shall succeed to all the entrusted interest in the land.

01  (d) Separate accounts shall be maintained in the name of each village for the 02 land, including the revenue from the land, acquired from each village corporation 03 under this section, and every two years within 90 days of the close of the second state 04 fiscal year a statement of the account for each municipality shall be prepared by the 05 commissioner and be made available to the village and to the public upon request. 06  (e) Upon the conveyance of land to a municipality under this section, the 07 commissioner shall account to the municipality for all profits including interest 08 generated from the land. The municipality may then request the governor to submit 09 a request to the legislature for an appropriation for the amount due the municipality. 10  (f) Title to or an interest in land acquired by the department under this section 11 may not be acquired by adverse possession or prescription. Notwithstanding (a) - (e) 12 of this section, on the dissolution of a municipality under AS 29.06.450 - 29.06.530, 13 unimproved land that was owned by the municipality on the date of its dissolution and 14 received by the municipality from the state under a municipal land grant entitlement 15 program is transferred to the commissioner of natural resources. 16  (g) For the purposes of this section, "municipality" includes only first and 17 second class cities incorporated under the laws of the state. 18  Sec. 44.33.760. LOAN INFORMATION OFFICERS. (a) The department 19 may provide itinerant loan information officers to serve persons who reside outside the 20 major population centers of the state. 21  (b) The loan information officers shall be trained, to the extent that the 22 department considers necessary, in a program administered by the department and 23 approved by the Alaska Housing Finance Corporation, the Alaska Industrial 24 Development and Export Authority, and the principal departments of the executive 25 branch that administer loan programs. 26  (c) A majority of the loan information officers shall be persons who are 27 conversant in Alaska Native languages that are spoken by a significant number of 28 Alaska Natives. The department shall provide brochures and other printed materials, 29 written in easily understandable English and in the Alaska Native languages that are 30 spoken by a significant number of Alaska Natives, for distribution by the loan 31 information officers. The brochures and printed materials must explain the purposes

01 of the various state loan programs, the minimum qualifications under the programs, the 02 method for obtaining assistance in the completion of applications for the programs, and 03 other information the department determines will improve the access of persons in 04 rural areas to the state's loan programs. 05  (d) The department shall coordinate its efforts under this section with local 06 financial institutions and community groups to determine the proper itinerary and travel 07 schedule of the loan information officers and to provide adequate notice to persons in 08 rural areas of the itinerary and travel schedule of the loan information officers. 09  (e) The department shall assign the loan information officers to rural areas 10 based on the current and potential future demands for loans in those areas and shall 11 establish offices for the loan information officers in rural areas if the department 12 determines it is necessary to provide familiarity with the area served by the loan 13 information officers and to reduce travel costs. 14  Sec. 44.33.765. RURAL DEVELOPMENT INITIATIVE FUND. (a) The 15 rural development initiative fund is created in the department. Unless provided 16 otherwise in the appropriation act, an appropriation to the fund is retained in the fund 17 for use under AS 44.33.765 - 44.33.775 and does not lapse at the end of a fiscal year. 18 Each year the commissioner shall request an appropriation to the fund of interest and 19 other income earned on loans or investments of the fund. Money in the fund may be 20 appropriated for costs of administering AS 44.33.765 - 44.33.775. 21  (b) The commissioner may place money from the fund into a special reserve 22 account as necessary. The commissioner may use money in the account to protect the 23 state's security interest in collateral on loans made from the fund, to protect the state's 24 interests in investments made from the fund, or to defray expenses incurred during 25 foreclosure or other legal proceedings involving loans or investments made from the 26 fund. 27  (c) The commissioner may use money from the fund to provide for loan 28 information officers under AS 44.33.760. 29  Sec. 44.33.770. RURAL DEVELOPMENT LOANS. (a) The department may 30 use money from the rural development initiative fund to make a loan of up to 31 $100,000 to a person, or a loan of up to $200,000 to two or more persons, to be used

01 for working capital, equipment, construction, or other commercial purposes by a 02 business located in a community with a population of 5,000 or less. A person who has 03 received a loan under this subsection may not be granted another loan until after the 04 original loan is entirely repaid. 05  (b) The department shall require collateral for each loan made under this 06 section and shall require that a reasonable amount of money from other nonstate 07 sources be committed for use on any project or enterprise for which money from a 08 loan will be used. The department by regulation may establish other conditions for 09 loans. The department shall by regulation establish rates of interest that are not less 10 than six percent a year and terms of repayment for loans made under this section. 11  Sec. 44.33.775. DISPOSAL OF PROPERTY ACQUIRED BY DEFAULT OR 12 FORECLOSURE. The department shall dispose of property acquired through default 13 or foreclosure of a loan made from the rural development initiative fund. Disposal 14 shall be made in a manner that serves the best interests of the state, and may include 15 the amortization of payments over a period of years. The commissioner shall request 16 an appropriation to the fund of proceeds from disposal of property under this section. 17  Sec. 44.33.780. DEFINITIONS. In AS 44.33.740 - 44.33.780, 18  (1) "commissioner" means the commissioner of community and 19 economic development; 20  (2) "department" means the Department of Community and Economic 21 Development. 22 * Sec. 288. AS 44.33.800(a) is amended to read: 23  (a) There is established within the Department of Community [COMMERCE] 24 and Economic Development the division of international trade to foster the growth of 25 trade between Alaska and foreign countries. 26 * Sec. 289. AS 44.33.800(f) is amended to read: 27  (f) The expenses of operating the division of international trade and its foreign 28 offices shall be included in appropriations made to the Department of Community 29 [COMMERCE] and Economic Development. 30 * Sec. 290. AS 44.33 is amended by adding new sections to read: 31 ARTICLE 10. LOCAL BOUNDARY COMMISSION.

01  Sec. 44.33.810. LOCAL BOUNDARY COMMISSION. There is in the 02 Department of Community and Economic Development a local boundary commission. 03 The local boundary commission consists of five members appointed by the governor 04 for overlapping five-year terms. One member shall be appointed from each of the four 05 judicial districts described in AS 22.10.010 and one member shall be appointed from 06 the state at large. The member appointed from the state at large is the chair of the 07 commission. 08  Sec. 44.33.812. POWERS AND DUTIES. (a) The local boundary 09 commission shall 10  (1) make studies of local government boundary problems; 11  (2) adopt regulations providing standards and procedures for municipal 12 incorporation, annexation, detachment, merger, consolidation, reclassification, and 13 dissolution; 14  (3) consider a local government boundary change requested of it by the 15 legislature, the commissioner of community and economic development, or a political 16 subdivision of the state; and 17  (4) develop standards and procedures for the extension of services and 18 ordinances of incorporated cities into contiguous areas for limited purposes upon 19 majority approval of the voters of the contiguous area to be annexed and prepare 20 transition schedules and prorated tax mill levies as well as standards for participation 21 by voters of these contiguous areas in the affairs of the incorporated cities furnishing 22 services. 23  (b) The local boundary commission may 24  (1) conduct meetings and hearings to consider local government 25 boundary changes and other matters related to local government boundary changes, 26 including extensions of services by incorporated cities into contiguous areas and 27 matters related to extension of services; and 28  (2) present to the legislature during the first 10 days of a regular 29 session proposed local government boundary changes, including gradual extension of 30 services of incorporated cities into contiguous areas upon a majority approval of the 31 voters of the contiguous area to be annexed and transition schedules providing for total

01 assimilation of the contiguous area and its full participation in the affairs of the 02 incorporated city within a period not to exceed five years. 03  Sec. 44.33.814. MEETINGS AND HEARINGS. The chair of the commission 04 or the commissioner of community and economic development with the consent of the 05 chair may call a meeting or hearing of the local boundary commission. All meetings 06 and hearings shall be public. 07  Sec. 44.33.816. MINUTES AND RECORDS. The local boundary commission 08 shall keep minutes of all meetings and hearings. If the proceedings are transcribed, 09 minutes shall be made from the transcription. The minutes are a public record. All 10 votes taken by the commission shall be entered in the minutes. 11  Sec. 44.33.818. NOTICE OF PUBLIC HEARINGS. Public notice of a hearing 12 of the local boundary commission shall be given in the area in which the hearing is 13 to be held at least 15 days before the date of the hearing. The notice of the hearing 14 must include the time, date, place, and subject of the hearing. The commissioner of 15 community and economic development shall give notice of the hearing at least three 16 times in the press, through other news media, or by posting in a public place, 17 whichever is most feasible. 18  Sec. 44.33.820. QUORUM. Three members of the commission constitute a 19 quorum for the conduct of business at a meeting. Two members constitute a quorum 20 for the conduct of business at a hearing. 21  Sec. 44.33.822. BOUNDARY CHANGE. A majority of the membership of 22 the local boundary commission must vote in favor of a proposed boundary change 23 before it may be presented to the legislature. 24  Sec. 44.33.824. EXPENSES. Members of the local boundary commission 25 receive no pay but are entitled to the travel expenses and per diem authorized for 26 members of boards and commissions under AS 39.20.180. 27  Sec. 44.33.826. HEARINGS ON BOUNDARY CHANGES. A local 28 government boundary change may not be proposed to the legislature unless a hearing 29 on the change has been held in or in the near vicinity of the area affected by the 30 change. 31  Sec. 44.33.828. WHEN BOUNDARY CHANGE TAKES EFFECT. When a

01 local government boundary change is proposed to the legislature during the first 10 02 days of any regular session, the change becomes effective 45 days after presentation 03 or at the end of the session, whichever is earlier, unless disapproved by a resolution 04 concurred in by a majority of the members of each house. 05 ARTICLE 11. BOROUGH FEASIBILITY STUDIES. 06  Sec. 44.33.840. BOROUGH FEASIBILITY STUDIES. The commissioner 07 may contract for studies of the feasibility of establishing boroughs in the unorganized 08 borough. A study may be conducted under this section only if 09  (1) appropriations are available for that purpose; and 10  (2) the study is requested by a person residing in the area to be studied 11 or by a city located in the area to be studied. 12  Sec. 44.33.842. REQUESTS FOR STUDIES. A request for a study of the 13 feasibility of establishing a borough in the unorganized borough shall be submitted to 14 the commissioner in writing and must include 15  (1) a description of the boundaries of the area of the proposed study; 16 and 17  (2) an indication of local interest in the proposed study consisting of 18 either 19  (A) a petition requesting the study containing the signatures and 20 addresses of five percent of the voters residing in the area of the proposed 21 study based on the number of voters who voted in the area in the last statewide 22 election; or 23  (B) resolutions requesting the study adopted by the governing 24 bodies of at least five percent of the cities within the area of the proposed 25 study. 26  Sec. 44.33.844. BOUNDARIES. The boundaries of an area studied shall 27 conform to the boundaries indicated in the request for the study under AS 44.33.842 28 unless the commissioner, after a public hearing held in the area of the proposed study, 29 determines that the boundaries should be altered. In determining the boundaries of an 30 area to be studied, the commissioner shall consider 31  (1) the standards applicable to the incorporation of boroughs under

01 AS 29.05.031; 02  (2) boundaries of regional corporations established under 43 U.S.C. 03 1606; 04  (3) census divisions of the state used for the 1980 census; 05  (4) boundaries of the regional educational attendance areas established 06 under AS 14.08.031; and 07  (5) boundaries of coastal resource service areas organized under 08 AS 46.40.110 - 46.40.210. 09  Sec. 44.33.846. CONTRACTS. (a) The commissioner shall contract for a 10 study of the feasibility of establishing a borough in the unorganized borough by 11 following the procedures under AS 36.30 (State Procurement Code). The 12 commissioner shall include terms in the contract that provide for 13  (1) public participation in the preparation of the study; 14  (2) completion of the study not later than June 30 of the third year after 15 the year the contract is executed. 16  (b) A study under this section must include 17  (1) a recommendation for or against incorporation of a borough 18 containing all or part of the area studied; 19  (2) an evaluation of the economic development potential of the area 20 studied; 21  (3) an evaluation of capital facility needs of the area studied; 22  (4) an evaluation of demographic, social, and environmental factors 23 affecting the area studied; 24  (5) an evaluation of the relationships among regional educational 25 attendance areas, coastal resource service areas, and other regional entities responsible 26 for providing services in the area studied; 27  (6) an evaluation of the relationships between the existing cities within 28 the area studied and regional entities responsible for providing services in the area; and 29  (7) specific recommendations for 30  (A) organization of a home rule or general law borough 31 government if one is recommended;

01  (B) changes in organization of cities in the area studied; or 02  (C) the improvement of the delivery of services to the public 03 by the state in the area studied. 04  Sec. 44.33.849. DEFINITION. In AS 44.33.840 - 44.33.849, "commissioner" 05 means the commissioner of community and economic development. 06 * Sec. 291. AS 44.37.025(d) is amended to read: 07  (d) The department shall file with the commissioner of community 08 [COMMERCE] and economic development a copy of each conveyance recorded that 09 contains a statement that property is conveyed to a nonresident alien or for the benefit 10 of a nonresident alien. 11 * Sec. 292. AS 44.37 is amended by adding new sections to read: 12 ARTICLE 2. PLANNING ASSISTANCE. 13  Sec. 44.37.200. PLANNING ASSISTANCE TO PLATTING AUTHORITIES. 14 To facilitate planning in municipalities that exercise planning and zoning authority, the 15 department may provide planning assistance, including but not limited to surveys, land 16 use studies, urban renewal plans, technical services, model acts that include regulations 17 designed to encourage development and use of energy systems not dependent on oil 18 or gas, and other planning work to a city, borough, or other platting authority. In an 19 area under the jurisdiction, for planning purposes, of a city, borough, or other platting 20 authority, the department may not perform the planning work except at the request or 21 with the consent of the local authority. 22  Sec. 44.37.210. ASSISTANCE BY CITIES AND PLATTING AUTHORITIES. 23 A city or platting authority may make funds under its control available to the 24 department for the purposes of obtaining planning work or planning assistance, or both, 25 for its area. The department may contract for, accept, and expend the funds for urban 26 planning for the local jurisdiction. 27  Sec. 44.37.220. LAND USE PLANNING AND STATE FACILITY 28 PROCUREMENT PLAN. The department shall make recommendations to the 29 Department of Transportation and Public Facilities and to appropriate program agencies 30 concerning the effect upon the comprehensive plan or other land use plans or proposals 31 of municipalities and unincorporated communities with respect to the facility

01 procurement plan required to be prepared in accordance with AS 35.10.170 and 02 AS 44.42.055. 03  Sec. 44.37.230. PLANNING ASSISTANCE FOR DEVELOPMENT AND 04 MAINTENANCE OF DISTRICT COASTAL MANAGEMENT PROGRAMS. The 05 department shall conduct a program of research, training, and technical assistance to 06 coastal resource districts necessary for the development and implementation of district 07 coastal management programs under AS 46.40. The technical assistance shall include 08 the direct granting to the coastal resource districts of a portion of any funds received 09 by the state from the federal coastal zone management program, in amounts to be 10 individually determined for each coastal resource district by the commissioner. State 11 agencies shall assist the department in carrying out the purposes of this section. 12  Sec. 44.37.240. PLANNING POWERS OF AUTHORITY. The department 13 may accept and expend grants from the federal government and other public or private 14 sources, may contract with reference to them, and may enter into contracts and 15 exercise all other powers necessary to carry out AS 44.47.080 - 44.47.100. 16 ARTICLE 3. ALASKA MINERALS COMMISSION. 17  Sec. 44.37.431. ALASKA MINERALS COMMISSION ESTABLISHED. (a) 18 The Alaska Minerals Commission is established in the Department of Natural 19 Resources. 20  (b) The commission is composed of 11 members. The commission shall be 21 composed of individuals who have at least five years' experience in the various aspects 22 of the minerals industries in the state. The governor shall appoint five members of the 23 commission, one of whom must reside in a rural community. The president of the 24 senate shall appoint three members of the commission. The speaker of the house of 25 representatives shall appoint three members of the commission. Each member serves 26 at the pleasure of the appointing authority. 27  (c) The commission shall make recommendations to the governor and to the 28 legislature on ways to mitigate the constraints, including governmental constraints, on 29 development of minerals, including coal, in the state. 30  (d) The commission shall report its recommendations each year to the governor 31 during the first 10 days of the regular session of the legislature. The commission shall

01 notify the legislature that the report is available. 02 ARTICLE 4. GENERAL PROVISIONS. 03  Sec. 44.37.900. FEES FOR PUBLICATIONS, RESEARCH DATA, AND 04 OTHER SERVICES. The commissioner may establish by regulation and the 05 department may charge reasonable fees for department publications, research data, and 06 other centralized administrative services to cover the cost of reproduction, printing, 07 mailing, distribution, and other centralized administrative services. 08  Sec. 44.37.990. DEFINITIONS. In this chapter, 09  (1) "commissioner" means the commissioner of natural resources; 10  (2) "department" means the Department of Natural Resources. 11 * Sec. 293. AS 44.42.020(a) is amended to read: 12  (a) The department shall 13  (1) plan, design, construct, and maintain all state modes of 14 transportation and transportation facilities and all docks, floats, breakwaters, buildings, 15 and similar facilities; 16  (2) study existing transportation modes and facilities in the state to 17 determine how they might be improved or whether they should continue to be 18 maintained; 19  (3) study alternative means of improving transportation in the state with 20 regard to the economic costs of each alternative and its environmental and social 21 effects; 22  (4) develop a comprehensive, long-range intermodal transportation plan 23 for the state; 24  (5) study alternatives to existing modes of transportation in urban areas 25 and develop plans to improve urban transportation; 26  (6) cooperate and coordinate with and enter into agreements with 27 federal, state, and local government agencies and private organizations and persons in 28 exercising its powers and duties; 29  (7) manage, operate, and maintain state transportation facilities and all 30 docks, floats, breakwaters, and buildings, including all state highways, vessels, 31 railroads, pipelines, airports, and aviation facilities;

01  (8) study alternative means of transportation in the state, considering 02 the economic, social, and environmental effects of each alternative; 03  (9) coordinate and develop state and regional transportation systems, 04 considering deletions, additions, and the absence of alterations; 05  (10) develop facility program plans for transportation and state 06 buildings, docks, and breakwaters required to implement the duties set out in this 07 section, including but not limited to functional performance criteria and schedules for 08 completion; 09  (11) supervise and maintain all state automotive and mechanical 10 equipment, aircraft, and vessels, except vessels and aircraft used by the Department of 11 Fish and Game or the Department of Public Safety; for state vehicles maintained by 12 the department, the department shall annually evaluate the cost, efficiency, and 13 commercial availability of natural gas for automotive purposes, and the purpose for 14 which the vehicles are intended to be used, and convert or purchase vehicles to utilize 15 natural gas whenever practicable; the department may participate in joint ventures with 16 public or private partners that will foster the availability of natural gas for all 17 automotive fuel consumers; 18  (12) supervise aeronautics inside the state, under AS 02.10; 19  (13) complete and maintain a current inventory of public facilities, 20 including a projection of the serviceability of the facilities and projections of 21 replacements and additions to facilities needed to provide the level of services 22 programmed by the various user agencies, for municipalities with populations of less 23 than 12,000 and for unincorporated communities, and perform those duties on a 24 cooperative basis with larger municipalities; 25  (14) adopt energy performance standards for public facilities of the 26 state, the construction of which begins after July 1, 1980; the standards shall be based 27 on thermal and lighting energy standards established by the American Society of 28 Heating, Refrigeration and Air Conditioning Engineers as adapted for application in 29 high latitude, cold climate environs; 30  (15) provide planning assistance, including but not limited to energy 31 audits and related technical services, to school districts and regional educational

01 attendance areas to develop and implement 02  (A) standards for the design, construction, and operation of rural 03 educational facilities; and 04  (B) energy conservation measures for rural educational 05 facilities; 06  (16) inspect weights and measures; 07  (17) operate motor vehicle weighing stations; 08  (18) issue special written permits authorizing the operation of 09 overweight and oversize vehicles and establish fees for the overweight and 10 oversize vehicle special permits; 11  (19) enforce the size, weight, and load limitations adopted under 12 AS 19.10.060; and 13  (20) establish regulations relating to pilot car services and the 14 enforcement of the size, weight, and load limitations adopted under AS 19.10.060. 15 * Sec. 294. AS 44.42.055(d) is amended to read: 16  (d) In this section, "public facility" 17  (1) means a capital improvement within one of the categories described 18 in (b) of this section that is constructed 19  (A) for subsequent occupancy or operation by the state, a public 20 corporation of the state, the University of Alaska, a political subdivision, or a 21 regional educational attendance area; 22  (B) by a political subdivision or any private party with the 23 assistance of financial support provided by the state if funds appropriated or 24 paid by way of a grant or loan in advance of construction of the facility, or any 25 part of it, are 50 percent or more of the estimated costs of construction of the 26 facility; 27  (2) does not include projects constructed with the proceeds of one or 28 more loans issued by a loan program administered by the Department of Community 29 [COMMERCE] and Economic Development. 30 * Sec. 295. AS 44.62.330(a)(27) is amended to read: 31  (27) Department of Health and Social Services and Department of

01 Environmental Conservation under AS 17.20 (Alaska Food, Drug, and Cosmetic Act), 02 and Department of Labor [COMMERCE AND ECONOMIC DEVELOPMENT] in 03 connection with the licensing of embalmers and funeral directors under AS 08.42; 04 * Sec. 296. AS 44.62.330(a)(53) is amended to read: 05  (53) Department of Labor [COMMERCE AND ECONOMIC 06 DEVELOPMENT] concerning the licensing and regulation of audiologists under 07 AS 08.11; 08 * Sec. 297. AS 44.62.330(a)(54) is amended to read: 09  (54) Department of Labor [COMMERCE AND ECONOMIC 10 DEVELOPMENT] concerning the licensing and regulation of hearing aid dealers under 11 AS 08.55; 12 * Sec. 298. AS 44.81.010(b) is amended to read: 13  (b) For the purpose of the funding of the bank's operations, the board of 14 directors may issue nonvoting, preferred shares of stock in the bank and determine the 15 value of each share. The state, through appropriate agencies, may purchase the 16 nonvoting, preferred shares issued by the bank. Shares purchased by the state shall be 17 repurchased by the bank within 20 years after their purchase. If the bank fails to 18 repurchase the shares within 20 years, the commissioner of revenue [COMMERCE 19 AND ECONOMIC DEVELOPMENT] may dissolve the bank. 20 * Sec. 299. AS 44.81.050 is amended to read: 21  Sec. 44.81.050. MEMBERSHIP MEETINGS. Upon filing the articles of 22 incorporation, the board of directors, with the assistance of the commissioner of 23 community [COMMERCE] and economic development or the commissioner's 24 designee, may hold public meetings throughout the state for the purpose of explaining 25 to members of the commercial fishing and farming industries the functions of the bank 26 and to encourage membership in the bank. 27 * Sec. 300. AS 44.81.270(c) is amended to read: 28  (c) The state bank examiners shall perform an annual qualitative examination 29 and evaluation of the bank. The commissioner of revenue [COMMERCE AND 30 ECONOMIC DEVELOPMENT] shall assess the bank a fee established under 31 AS 06.01.010(b) for the actual expenses incurred by the Department of Revenue

01 [COMMERCE AND ECONOMIC DEVELOPMENT] in connection with the 02 examination. The examiners shall report to the board of directors on the examination. 03 The examiners shall prepare a summary report evaluating the bank's loan portfolio 04 quality on a statistical basis and addressing the appropriateness and effectiveness of 05 the bank's policies, practices, and management within the context of the bank's 06 statutory purposes. The examiners shall distribute copies of the summary report to the 07 bank, the legislature, and the governor. 08 * Sec. 301. AS 44.83.020 is amended to read: 09  Sec. 44.83.020. CREATION OF AUTHORITY. There is created the Alaska 10 Energy Authority. The authority is a public corporation of the state in the Department 11 of Community [COMMERCE] and Economic Development but with separate and 12 independent legal existence. 13 * Sec. 302. AS 44.85.030 is amended to read: 14  Sec. 44.85.030. MEMBERSHIP AND VACANCIES. The bond bank authority 15 consists of the following five directors: the commissioner of revenue, the commissioner 16 of community and economic development [REGIONAL AFFAIRS], who shall each 17 be a director ex officio with voting privileges, and three directors appointed by the 18 governor. The appointment of each director other than the commissioner of revenue 19 and the commissioner of community and economic development [REGIONAL 20 AFFAIRS] is subject to confirmation by the legislature. The three directors appointed 21 by the governor serve at the governor's pleasure for four-year terms. They must be 22 residents of the state and qualified voters at the time of appointment and shall comply 23 with the requirements of AS 39.50 (conflict of interest). Each director shall hold 24 office for the term of appointment and until a successor has been appointed and 25 qualified. A director is eligible for reappointment. A vacancy in a directorship 26 occurring other than by expiration of term shall be filled in the same manner as the 27 original appointment but for the unexpired term only. Each director before entering 28 upon the duties of office shall take and subscribe to an oath to perform the duties 29 faithfully, impartially, and justly to the best of the director's ability. A record of the 30 oath shall be filed in the office of the governor. 31 * Sec. 303. AS 44.85.320(b) is amended to read:

01  (b) Before declaring the principal of notes or bonds due and payable, the 02 trustee must first give 30 days' notice in writing to the governor, the bond bank 03 authority, the commissioner of community and economic development [REGIONAL 04 AFFAIRS], and the attorney general of the state. 05 * Sec. 304. AS 44.88.020 is amended to read: 06  Sec. 44.88.020. CREATION OF AUTHORITY. There is created the Alaska 07 Industrial Development and Export Authority. The authority is a public corporation 08 of the state and a body corporate and politic constituting a political subdivision within 09 the Department of Community [COMMERCE] and Economic Development, but with 10 separate and independent legal existence. 11 * Sec. 305. AS 44.88.030(a) is amended to read: 12  (a) The membership of the authority consists of 13  (1) the commissioner of revenue and the commissioner of community 14 [COMMERCE] and economic development; 15  (2) one other person appointed by the governor who serves as the head 16 of a principal department of the executive branch; and 17  (3) two public members appointed by the governor. 18 * Sec. 306. AS 45.50.040 is amended to read: 19  Sec. 45.50.040. FILING FEE. The application for registration shall be 20 accompanied by a filing fee of $10 payable to the department [DEPARTMENT OF 21 COMMERCE AND ECONOMIC DEVELOPMENT]. 22 * Sec. 307. AS 45.50.200(2) is amended to read: 23  (2) "commissioner" means the commissioner of community 24 [COMMERCE] and economic development; 25 * Sec. 308. AS 45.50.200(3) is amended to read: 26  (3) "department" means the Department of Community [COMMERCE] 27 and Economic Development; 28 * Sec. 309. AS 45.55.905(a) is amended to read: 29  (a) The Department of Revenue [COMMERCE AND ECONOMIC 30 DEVELOPMENT] shall administer this chapter. 31 * Sec. 310. AS 45.55.990(1) is amended to read:

01  (1) "administrator" means the commissioner of revenue [COMMERCE 02 AND ECONOMIC DEVELOPMENT] or a designee of the commissioner; 03 * Sec. 311. AS 45.57.090 is amended to read: 04  Sec. 45.57.090. CONSENT TO SERVICE OF PROCESS. A nonresident 05 offeror, except a foreign corporation that [WHICH] has complied with AS 10.05.597 - 06 10.05.696, who makes a takeover bid affecting an offeree company is considered to 07 have appointed the commissioner of revenue [COMMERCE AND ECONOMIC 08 DEVELOPMENT] as the offeror's agent upon whom may be served, in any matter 09 arising under this chapter, any process, notice, order, or demand except one issued by 10 the department. Service may be made on the commissioner or any of the 11 commissioner's staff at the commissioner's office. The commissioner shall send it by 12 registered or certified mail addressed to the offeror at the latest address on file and 13 keep a record of it. A process, notice, order or demand issued by the department shall 14 be served by being mailed by the commissioner or any of the commissioner's staff by 15 registered or certified mail addressed to the offeror at the latest address on file. 16 * Sec. 312. AS 45.57.110(2) is amended to read: 17  (2) "department" means the Department of Revenue [COMMERCE 18 AND ECONOMIC DEVELOPMENT]; 19 * Sec. 313. AS 45.65.020 is amended to read: 20  Sec. 45.65.020. COMMISSIONER TO ADMINISTER. The commissioner of 21 community [COMMERCE] and economic development is responsible for the 22 administration of AS 45.65.010 - 45.65.070, including 23  (1) subject to AS 45.65.030(a), the design, method of affixing, 24 preparation, issuance, and control of identification seals; 25  (2) the issuance of permits to agents to distribute the seals; 26  (3) the supervision of the use of the seals and emblems; 27  (4) subject to AS 45.65.030(c), the design, issuance, and control of 28 emblems; 29  (5) the issuance of permits to agents to issue permits to use the 30 emblems; and 31  (6) the enforcement of AS 45.65.010 - 45.65.070.

01 * Sec. 314. AS 45.65.070(3) is amended to read: 02  (3) "commissioner" means the commissioner of community 03 [COMMERCE] and economic development; 04 * Sec. 315. AS 45.75.030 is amended to read: 05  Sec. 45.75.030. STATE DIRECTOR AND INSPECTORS OF WEIGHTS AND 06 MEASURES. The commissioner of transportation and public facilities 07 [COMMERCE AND ECONOMIC DEVELOPMENT] is ex officio state director of 08 weights and measures. The director may appoint state inspectors. 09 * Sec. 316. AS 45.75.050(b) is amended to read: 10  (b) The regulations may include 11  (1) standards of net weight, measure, or count, and reasonable standards 12 of fill, for a commodity in package form; 13  (2) rules governing the technical and reporting procedures to be 14 followed, and the report and record forms and marks of approval and rejection to be 15 used by inspectors of weights and measures in the discharge of their official duties; 16  (3) exemptions from the sealing or marking requirements of 17 AS 45.75.120 for weights and measures of a character or size that sealing or marking 18 would be inappropriate, impracticable, or damaging to the apparatus in question; 19  (4) for classes of weights and measures of a character that retesting is 20 unnecessary to continued accuracy, exemptions from the requirements of AS 45.75.070 21 and 45.75.080 for testing, and schedules fixing the frequency of required retests for 22 classes of devices exempted; and 23  (5) in the implementation of AS 44.42.020(a)(16) - (20) 24 [AS 44.33.020(25)], provisions governing the size, weight, and load limitations 25 established under AS 19.10.060; the issuance of permits for overweight and oversize 26 vehicles; and the operation of weigh stations. 27 * Sec. 317. AS 45.75.131(a) is amended to read: 28  (a) A peace officer or an employee of the Department of Transportation and 29 Public Facilities [COMMERCE AND ECONOMIC DEVELOPMENT] who is 30 authorized by the commissioner of transportation and public facilities [COMMERCE 31 AND ECONOMIC DEVELOPMENT] to enforce this chapter may issue a citation to

01 a person who 02  (1) violates a weight, size, or load limitation adopted by the Department 03 of Transportation and Public Facilities under AS 19.10.060; 04  (2) violates the terms of an overweight or oversize vehicle permit 05 issued under AS 44.42.020(a)(18) [AS 44.33.020(25)]; 06  (3) violates a regulation adopted under AS 28.05.011(2) or under 07 AS 44.42.020(a)(16) - (20) [AS 44.33.020(25)] and AS 45.75.050(b)(5); or 08  (4) commits a violation identified under AS 45.75.380. 09 * Sec. 318. AS 45.75.131(d) is amended to read: 10  (d) The commissioner of public safety is responsible for the issuance of books 11 containing appropriate citations and shall maintain a record of each book and each 12 citation contained in it. The commissioner of public safety shall require and retain a 13 receipt for every book issued to an employee of the Department of Transportation 14 and Public Facilities [COMMERCE AND ECONOMIC DEVELOPMENT] designated 15 by the commissioner of transportation and public facilities [COMMERCE AND 16 ECONOMIC DEVELOPMENT] to provide investigative services to enforce provisions 17 of this chapter. 18 * Sec. 319. AS 45.75.380(a) is amended to read: 19  (a) A person commits a violation subject to the penalty specified in 20 AS 12.55.035(b)(5) if the person does one or more of the following acts: 21  (1) uses or has in possession for the purpose of using for a commercial 22 purpose specified in AS 45.75.080, sells, offers, or exposes for sale, or hire, or has in 23 possession for the purpose of selling or hiring, an incorrect weight or measure or a 24 device or instrument used to or calculated to falsify a weight or measure; 25  (2) uses or has in possession for current use, in buying or selling a 26 commodity or thing, or for hire or award, or in the computation of a basic charge or 27 payment for services rendered on the basis of weight or measurement, or in the 28 determination of weight or measurement when a charge is made for determination, a 29 weight or measure that has not been tested and sealed by the appropriate authority 30 within one year, unless 31  (A) the person gives written notice to the appropriate authority

01 to the effect that the weight or measure is available for examination, or is due 02 for reexamination, as the case may be; 03  (B) the person receives specific written permission to use the 04 weight or measure from the appropriate authority; or 05  (C) the weight or measure is exempt from sealing or annual 06 testing requirements by AS 45.75.080 or by a regulation adopted under 07 AS 45.75.050; 08  (3) disposes of a rejected or condemned weight or measure in a manner 09 contrary to law or regulation; 10  (4) removes from a weight or measure, contrary to law or regulation, 11 a tag, seal, or mark placed on it by the appropriate authority; 12  (5) sells or offers for sale less than the quantity the person represents 13 of a commodity, thing, or service; 14  (6) takes more than the quantity the person represents of a commodity, 15 thing, or service when, as buyer, the person furnished the weight or measure that the 16 seller used to determine the amount of the commodity, thing, or service; 17  (7) keeps for the purpose of sale, advertises, or offers for sale, or sells 18 a commodity, thing, or service in a condition or manner contrary to law or regulation; 19  (8) uses in retail trade, except in the preparation of packages put up in 20 advance of sale and of medical prescriptions, a weight or measure that is not so 21 positioned that a customer may accurately read, from a position that may reasonably 22 be assumed by a customer, its indications and observe the weighing or measuring 23 operation; 24  (9) hinders or obstructs the director, an inspector, a sealer, or a deputy 25 sealer in the performance of official duties under this chapter; 26  (10) violates a provision of an overweight or oversize vehicle permit 27 issued under AS 44.42.020(a)(18) [AS 44.33.020(25)]; 28  (11) violates a weight, load, or size limitation established under 29 AS 19.10.060 or a regulation adopted under AS 19.05.020, AS 44.42.020(a)(16) - (20) 30 [AS 44.33.020(25)], or AS 45.75.050(b)(5); 31  (12) violates a provision of this chapter or a regulation adopted under

01 this chapter for which a specific penalty is not prescribed. 02 * Sec. 320. AS 45.77.010(b) is amended to read: 03  (b) With the approval of the commissioner of community [COMMERCE] and 04 economic development, any private corporation may apply as described in (a) of this 05 section, and, if the application is granted, may establish, operate, and maintain a 06 foreign trade zone. 07 * Sec. 321. AS 45.88.010(a) is amended to read: 08  (a) There is established in the Department of Community [COMMERCE] and 09 Economic Development the alternative energy revolving loan fund to carry out the 10 purposes of this chapter. Loans made under this chapter are to be used to develop 11 means of energy production utilizing energy sources other than fossil or nuclear fuel, 12 including, but not limited to, windmills, water and solar energy devices. 13 * Sec. 322. AS 45.88.015(b) is amended to read: 14  (b) The commissioner of community [COMMERCE] and economic 15 development may expend money credited to the foreclosure expense account when 16 necessary to protect the state's security interest in collateral on loans made under 17 AS 45.88.020 or to defray expenses incurred during foreclosure proceedings after a 18 default by an obligor. 19 * Sec. 323. AS 45.88.040(a) is amended to read: 20  (a) The commissioner may sell or transfer at par value or at a premium or 21 discount to any bank or other private purchaser for cash or other consideration the 22 mortgages and notes held by the Department of Community [COMMERCE] and 23 Economic Development as security for loans made under this chapter. 24 * Sec. 324. AS 45.88.050 is amended to read: 25  Sec. 45.88.050. DISPOSAL OF PROPERTY ACQUIRED BY DEFAULT OR 26 FORECLOSURE. The Department of Community [COMMERCE] and Economic 27 Development shall dispose of property acquired through default or foreclosure of a 28 loan made under this chapter. Disposal shall be made in a manner that serves the best 29 interests of the state, and may include the amortization of payments over a period of 30 years. 31 * Sec. 325. AS 45.89.010(a) is amended to read:

01  (a) There is established in the Department of Community [COMMERCE] and 02 Economic Development the residential energy conservation fund to carry out the 03 purposes of this chapter. Loans and grants made under this chapter may be used to 04 purchase, construct, and install an energy conservation improvement in residential 05 buildings. 06 * Sec. 326. AS 45.89.500(1) is amended to read: 07  (1) "commissioner" means the commissioner of community 08 [COMMERCE] and economic development; 09 * Sec. 327. AS 45.89.500(2) is amended to read: 10  (2) "department" means the Department of Community [COMMERCE] 11 and Economic Development; 12 * Sec. 328. AS 45.90.010(a) is amended to read: 13  (a) There is created in the Department of Community [COMMERCE] and 14 Economic Development a tourism revolving fund. All principal and interest payments, 15 and money chargeable to principal or interest that is collected through liquidation by 16 foreclosure or other process on loans made under this chapter, shall be paid into the 17 tourism revolving fund. 18 * Sec. 329. AS 45.90.015(b) is amended to read: 19  (b) The commissioner of community [COMMERCE] and economic 20 development may expend money credited to the foreclosure expense account when 21 necessary to protect the state's security interest in collateral on loans made under 22 AS 45.90.020 or to defray expenses incurred during foreclosure proceedings after a 23 default by an obligor. 24 * Sec. 330. AS 45.90.020(b) is amended to read: 25  (b) The Department of Community [COMMERCE] and Economic 26 Development shall consult with the state division or department having jurisdiction 27 over tourism on regulations and procedures established under this chapter. 28 * Sec. 331. AS 45.90.040(a) is amended to read: 29  (a) The commissioner of community [COMMERCE] and economic 30 development may sell or transfer at par value or at a premium or discount to any bank 31 or other private purchaser for cash or other consideration the mortgages and notes held

01 by the Department of Community [COMMERCE] and Economic Development as 02 security for loans made under this chapter. 03 * Sec. 332. AS 45.90.050 is amended to read: 04  Sec. 45.90.050. DISPOSAL OF PROPERTY ACQUIRED BY DEFAULT OR 05 FORECLOSURE. The Department of Community [COMMERCE] and Economic 06 Development shall dispose of property acquired through default or foreclosure of a 07 loan made under this chapter. Disposal shall be made in a manner that serves the best 08 interests of the state, and may include the amortization of payments over a period of 09 years. 10 * Sec. 333. AS 45.95.010(a) is amended to read: 11  (a) The Department of Community [COMMERCE] and Economic 12 Development shall formulate general policies and adopt regulations necessary to carry 13 out the provisions of this chapter, including regulations to establish fees for services 14 provided and charges for collecting the fees. The department may collect the fees and 15 collection charges established. 16 * Sec. 334. AS 45.95.040(a) is amended to read: 17  (a) The commissioner may sell or transfer at par value or at a premium or 18 discount to any bank or other private purchaser for cash or other consideration the 19 mortgages and notes held by the Department of Community [COMMERCE] and 20 Economic Development as security for loans made under this chapter. 21 * Sec. 335. AS 45.95.055 is amended to read: 22  Sec. 45.95.055. DISPOSAL OF PROPERTY ACQUIRED BY DEFAULT OR 23 FORECLOSURE. The Department of Community [COMMERCE] and Economic 24 Development shall dispose of property acquired through default or foreclosure of a 25 loan made under this chapter. Disposal shall be made in a manner that serves the best 26 interests of the state, and may include the amortization of payments over a period of 27 years. 28 * Sec. 336. AS 45.95.070 is amended to read: 29  Sec. 45.95.070. ELIGIBILITY FOR LOANS. A person is eligible for a loan 30 under this chapter if 31  (1) the person can establish or demonstrate good character, capacity for

01 financial responsibility, ability to provide sufficient collateral and knowledge of Alaska 02 economic conditions; 03  (2) the person is a resident of the state; and 04  (3) in the judgment of the Department of Community [COMMERCE] 05 and Economic Development 06  (A) the business shows a definite potential for growth; 07  (B) the borrower will be able to repay the loan; and 08  (C) the loan will potentially create more jobs and provide 09 additional services in the community. 10 * Sec. 337. AS 45.95.080 is amended to read: 11  Sec. 45.95.080. DEFINITION. In this chapter, "commissioner" means the 12 commissioner of community [COMMERCE] and economic development. 13 * Sec. 338. AS 45.98.010(a) is amended to read: 14  (a) There is created in the Department of Community [COMMERCE] and 15 Economic Development a historical district revolving loan fund. All principal and 16 interest payments, and money chargeable to principal or interest that is collected 17 through liquidation by foreclosure or other process on loans made under this chapter, 18 shall be paid into the historical district revolving loan fund. 19 * Sec. 339. AS 45.98.015(b) is amended to read: 20  (b) The commissioner of community [COMMERCE] and economic 21 development may expend money credited to the foreclosure expense account when 22 necessary to protect the state's security interest in collateral on loans made under this 23 chapter, or to defray expenses incurred during foreclosure proceedings after a default 24 by an obligor. 25 * Sec. 340. AS 45.98.020 is amended to read: 26  Sec. 45.98.020. HISTORICAL DISTRICT LOANS. Upon endorsement and 27 plan approval by a local historical district commission established under AS 29.55.010 28 or former AS 29.48.108 and the recommendation of a majority of the members of the 29 Alaska Historical Commission, the Department of Community [COMMERCE] and 30 Economic Development may make loans to a person, firm, business, or municipality 31 subject to applicable laws for the restoration, improvement, rehabilitation, or

01 maintenance of a structure that is 02  (1) within the boundaries of a historical district established under 03 AS 29.55.020 or former AS 29.48.110 and identified as important in state or national 04 history as provided for in AS 29.55.020(b) or former AS 29.48.110(b); or 05  (2) a building or structure within a historical district, that is suitable for 06 superficial modification so that it can conform to the period or motif of the 07 surrounding buildings or structures that are the reason for the area's designation as a 08 historical district. 09 * Sec. 341. AS 45.98.030 is amended to read: 10  Sec. 45.98.030. POWERS AND DUTIES OF THE DEPARTMENT. For 11 purposes of administering this chapter, the Department of Community [COMMERCE] 12 and Economic Development may 13  (1) prescribe the form and procedure for submitting loan applications 14 under this chapter; 15  (2) designate agents and delegate powers to them as is necessary; 16  (3) in consultation with the Alaska Historical Commission, adopt 17 regulations necessary to carry out its functions, including regulations for the process 18 of plan approval by the commission and regulations to establish reasonable fees for 19 services provided and charges for collecting the fees; 20  (4) establish amortization plans for the repayment of loans not to 21 exceed 30 years; 22  (5) collect the fees and collection charges established under this section. 23 * Sec. 342. AS 45.98.050(a) is amended to read: 24  (a) The commissioner of community [COMMERCE] and economic 25 development or a designee of the commissioner may sell or transfer at par value or at 26 a premium or discount to any bank or other private purchaser for cash or other 27 consideration the mortgages and notes held by the Department of Community 28 [COMMERCE] and Economic Development as security for loans made under this 29 chapter. 30 * Sec. 343. AS 45.98.055 is amended to read: 31  Sec. 45.98.055. DISPOSAL OF PROPERTY ACQUIRED BY DEFAULT OR

01 FORECLOSURE. The Department of Community [COMMERCE] and Economic 02 Development shall dispose of property acquired through default or foreclosure of a 03 loan made under this chapter. Disposal shall be made in a manner that serves the best 04 interests of the state, and may include the amortization of payments over a period of 05 years. 06 * Sec. 344. AS 45.98.060 is amended to read: 07  Sec. 45.98.060. PENALTY PROVISION. After a project for which a loan is 08 granted is commenced, if the Department of Community [COMMERCE] and 09 Economic Development or a local historical district commission, in consultation with 10 the Alaska Historical Commission, determines that the project is inconsistent with the 11 guidelines or stipulations for construction, or otherwise fails to conform to the 12 requirements of the loan, the interest rate on the state's share of the loan shall be 13 increased to the highest rate of interest allowed at that time as provided in 14 AS 45.45.010. In addition, a penalty in the amount of two percent of the balance of 15 the loan shall be assessed by the Department of Community [COMMERCE] and 16 Economic Development. 17 * Sec. 345. AS 46.03.110(c) is amended to read: 18  (c) When the department receives an application, the commissioner shall 19 immediately send copies of the application to the commissioner of fish and game, the 20 commissioner of natural resources, the commissioner of community [COMMERCE] 21 and economic development, and the commissioner of health and social services. 22 * Sec. 346. AS 46.03.375(a) is amended to read: 23  (a) The department shall adopt regulations governing the certification of 24 persons who install, test, close, repair, or significantly change the configuration of 25 underground petroleum storage tanks and tank systems. The certification program 26 shall be administered by the division of occupational licensing, Department of Labor 27 [COMMERCE AND ECONOMIC DEVELOPMENT]. In consultation with the 28 Department of Environmental Conservation, the division shall make every reasonable 29 attempt to ensure that opportunities for obtaining certification under this section are 30 available throughout the state. The division shall organize presentation of national 31 training courses that are available in the state and assist residents of isolated

01 communities who request assistance in becoming certified. The division may contract 02 with the University of Alaska, a vocational technical school, or a regional nonprofit 03 organization to provide the education and testing necessary for certification. 04 * Sec. 347. AS 46.03.375(g)(2) is amended to read: 05  (2) "division" means the division of occupational licensing in the 06 Department of Labor [COMMERCE AND ECONOMIC DEVELOPMENT]. 07 * Sec. 348. AS 46.03.900(32) is amended to read: 08  (32) "village" means a place within the unorganized borough or within 09 a borough as to a power, function, or service that is not exercised or provided by the 10 borough on an areawide or nonareawide basis that 11  (A) has irrevocably waived, in a form approved by the 12 Department of Law, any claim of sovereign immunity that might arise under 13 this chapter; and 14  (B) has 15  (i) a council organized under 25 U.S.C. 476 (sec. 16 of 16 the Indian Reorganization Act); 17  (ii) a traditional village council recognized by the United 18 States as eligible for federal aid to Indians; or 19  (iii) a council recognized by the commissioner of 20 community and economic development [REGIONAL AFFAIRS] under 21 regulations adopted by the Department of Community and Economic 22 Development [REGIONAL AFFAIRS] to determine and give official 23 recognition of village entities under AS 44.33.755(b) [AS 44.47.150(b)]; 24 * Sec. 349. AS 46.04.040(e) is amended to read: 25  (e) Financial responsibility may be demonstrated by (1) self-insurance, (2) 26 insurance, (3) surety, (4) guarantee, (5) letter of credit approved by the department, or 27 (6) other proof of financial responsibility approved by the department, including proof 28 of financial responsibility provided by a group of insureds who have agreed to cover 29 pollution risks of members of the group under terms the department may prescribe. 30 An action brought under AS 46.03.758, 46.03.759, 46.03.760(a) or (d), 46.03.822, or 31 AS 46.04.030(g) may be brought in a state court directly against the insurer, the group,

01 or another person providing evidence of financial responsibility; however, the liability 02 under this section of a third-party insurer is limited to the type of risk assumed and the 03 amount of coverage specified in the proof of financial responsibility furnished to and 04 approved by the department. The applicant, and an insurer, surety, guarantor, person 05 furnishing an approved letter of credit, or other group or person providing proof of 06 financial responsibility approved by the department shall appoint an agent for service 07 of process in the state. For purposes of this subsection, an insurer, other than a group 08 of insureds whose agreement has been approved by the department, must either be 09 authorized by the Department of Revenue [COMMERCE AND ECONOMIC 10 DEVELOPMENT] to sell insurance in the state or be an unauthorized insurer listed 11 by the Department of Revenue [COMMERCE AND ECONOMIC DEVELOPMENT] 12 as not disapproved for use in the state. In this subsection, "third-party insurer" means 13 a third-party insurer, surety, guarantor, person furnishing a letter of credit, or other 14 group or person providing proof of financial responsibility on behalf of an applicant 15 under this section; "third-party insurer" does not include the applicant. 16 * Sec. 350. AS 46.04.900(22) is amended to read: 17  (22) "village" means a place within the unorganized borough or within 18 a borough as to a power, function, or service that is not exercised or provided by the 19 borough on an areawide or nonareawide basis that 20  (A) has irrevocably waived, in a form approved by the 21 Department of Law, any claim of sovereign immunity that might arise under 22 this chapter; and 23  (B) has 24  (i) a council organized under 25 U.S.C. 476 (sec. 16 of 25 the Indian Reorganization Act); 26  (ii) a traditional village council recognized by the United 27 States as eligible for federal aid to Indians; or 28  (iii) a council recognized by the commissioner of 29 community and economic development [REGIONAL AFFAIRS] under 30 regulations adopted by the Department of Community and Economic 31 Development [REGIONAL AFFAIRS] to determine and give official

01 recognition of village entities under AS 44.33.755(b) [AS 44.47.150(b)]; 02 * Sec. 351. AS 46.08.040(a) is amended to read: 03  (a) In addition to money in the response account of the fund that is transferred 04 to the commissioner of community and economic development [REGIONAL 05 AFFAIRS] to make grants under AS 29.60.510 and to pay for impact assessments 06 under AS 29.60.560, the commissioner of environmental conservation may use money 07  (1) from the response account in the fund 08  (A) when authorized by AS 46.08.045, to investigate and 09 evaluate the release or threatened release of oil or a hazardous substance, and 10 contain, clean up, and take other necessary action, such as monitoring and 11 assessing, to address a release or threatened release of oil or a hazardous 12 substance that poses an imminent and substantial threat to the public health or 13 welfare, or to the environment; 14  (B) to provide matching funds in the event of a release of oil 15 or a hazardous substance for which use of the response account is authorized 16 by AS 46.08.045 for participation 17  (i) in federal oil discharge cleanup activities; and 18  (ii) under 42 U.S.C. 9601 - 9657 (Comprehensive 19 Environmental Response, Compensation, and Liability Act of 1980); 20 and 21  (C) to recover the costs to the state, a municipality, a village, 22 or a school district of a containment and cleanup resulting from the release or 23 the threatened release of oil or a hazardous substance for which money was 24 expended from the response account; 25  (2) from the prevention account in the fund to 26  (A) investigate and evaluate the release or threatened release of 27 oil or a hazardous substance, except a release described in AS 46.08.045(a), 28 and contain, clean up, and take other necessary action, such as monitoring and 29 assessing, to address a release or threatened release of oil or a hazardous 30 substance, except a release described in AS 46.08.045(a); 31  (B) pay all costs incurred

01  (i) establish and maintain the oil and hazardous 02 substance response office; 03  (ii) under agreements entered into under AS 46.04.090 04 or AS 46.09.040; 05  (iii) review oil discharge prevention and contingency 06 plans submitted under AS 46.04.030; 07  (iv) conduct training, response exercises, inspections, 08 and tests, in order to verify equipment inventories and ability to prevent 09 and respond to oil and hazardous substance release emergencies, and to 10 undertake other activities intended to verify or establish the 11 preparedness of the state, a municipality, or a party required by 12 AS 46.04.030 to have an approved contingency plan to act in 13 accordance with that plan; and 14  (v) verify or establish proof of financial responsibility 15 required by AS 46.04.040; 16  (C) pay, when presented with appropriate documentation by the 17 Department of Military and Veterans' Affairs, the expenses incurred by the 18 Department of Military and Veterans' Affairs for Alaska State Emergency 19 Response Commission activities, including staff support, when the activities 20 and staff support relate to oil or hazardous substances, and for the costs of 21 being prepared for responding to a request by the department for support in 22 response and restoration, but not including the costs of maintaining the 23 response corps and the emergency response depots under AS 26.23.045; 24  (D) pay all costs incurred to acquire, repair, or improve an asset 25 having an anticipated life of more than one year and that is acquired, repaired, 26 or improved as a preparedness measure by which the state may respond to, 27 recover from, reduce, or eliminate the effects of a release or threatened release 28 of oil or a hazardous substance; 29  (E) pay the costs, if approved by the commissioner, that were 30 incurred by local emergency planning committees to carry out the duties 31 assigned them by AS 46.13.080;

01  (F) provide matching funds in the event of the release of oil or 02 a hazardous substance, except a release of oil for the containment and cleanup 03 of which use of the response account is authorized by AS 46.08.045, for 04 participation 05  (i) in federal oil discharge cleanup activities; and 06  (ii) under 42 U.S.C. 9601 - 9657 (Comprehensive 07 Environmental Response, Compensation, and Liability Act of 1980); 08  (G) pay or reimburse the storage tank assistance fund 09 established in AS 46.03.410 for expenditures from that fund authorized by 10 AS 46.03.410(b); 11  (H) transfer to the Department of Community and Economic 12 Development [REGIONAL AFFAIRS] for payment by the commissioner of 13 community and economic development [REGIONAL AFFAIRS] of 14  (i) municipal impact grants when authorized under 15 AS 29.60.510(b)(2); 16  (ii) assessments of the social and economic effects of the 17 release of oil or hazardous substances as required by AS 29.60.560 18 when, in the judgment of the commissioner, the release of oil or a 19 hazardous substance is not one that is described in AS 46.08.045; and 20  (iii) grants to repair, improve, or replace fuel storage 21 facilities under the bulk fuel system emergency repair and upgrade 22 program; 23  (I) recover the costs to the state, a municipality, a village, or a 24 school district of a containment and cleanup resulting from the release or 25 threatened release of oil or a hazardous substance for which money was 26 expended from the prevention account; 27  (J) prepare, review, and revise 28  (i) the state's master oil and hazardous substance 29 discharge prevention and contingency plan required by AS 46.04.200; 30 and 31  (ii) a regional master oil and hazardous substance

01 discharge prevention and contingency plan required by AS 46.04.210; 02 and 03  (K) restore the environment by addressing the effects of an oil 04 or hazardous substance release; [.] 05  (3) pay the expenses incurred by the Alaska division of emergency 06 services for the oil and hazardous substance response corps and the oil and hazardous 07 substance response depots when presented with appropriate documentation by the 08 division; 09  (4) provide matching funds for participation in federal oil discharge 10 cleanup activities and under 42 U.S.C. 9601 - 9657 (Comprehensive Environmental 11 Response, Compensation, and Liability Act of 1980); 12  (5) recover the costs to the state, a municipality, or a village of a 13 containment and cleanup resulting from the release or the threatened release of oil or 14 a hazardous substance; 15  (6) prepare, review, and revise 16  (A) the state's master oil and hazardous substance discharge 17 prevention and contingency plan required by AS 46.04.200; and 18  (B) a regional master oil and hazardous substance discharge 19 prevention and contingency plan required by AS 46.04.210; and 20  (7) restore the environment by addressing the effects of an oil or 21 hazardous substance release. 22 * Sec. 352. AS 46.08.900(16) is amended to read: 23  (16) "village" means a place within the unorganized borough or within 24 a borough if the power, function, or service for which a grant application under 25 AS 29.60.510 is submitted is not exercised or provided by the borough on an areawide 26 or nonareawide basis at the time the grant application is submitted that 27  (A) has irrevocably waived, in a form approved by the 28 Department of Law, any claim of sovereign immunity that might arise in 29 connection with the use of grant money under this chapter; and 30  (B) has 31  (i) a council organized under 25 U.S.C. 476 (sec. 16 of

01 the Indian Reorganization Act); 02  (ii) a traditional village council recognized by the United 03 States as eligible for federal aid to Indians; or 04  (iii) a council recognized by the commissioner of 05 community and economic development [REGIONAL AFFAIRS] under 06 regulations adopted by the Department of Community and Economic 07 Development [REGIONAL AFFAIRS] to determine and give official 08 recognition of village entities under AS 44.33.755(b) [AS 44.47.150(b)]. 09 * Sec. 353. AS 46.11.900(2) is amended to read: 10  (2) "department" means the Department of Community [COMMERCE] 11 and Economic Development; 12 * Sec. 354. AS 46.40.120(b) is amended to read: 13  (b) The commissioner of community and economic development [THE 14 DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS] may, after public 15 hearings held in the area affected, consolidate two or more regional educational 16 attendance areas as a single coastal resource service area 17  (1) if a substantial portion of the coastal area contains land and water 18 area owned by the federal government over which it exercises exclusive jurisdiction 19 or land held in trust by the federal government for Alaska Natives over which the state 20 would not exercise control as to use; or 21  (2) if, after giving due consideration to the standards applicable to 22 incorporation of borough governments and the likelihood that a borough will be 23 incorporated within the area, the commissioner determines that the functions to be 24 performed under this chapter could be undertaken more efficiently through the 25 combination of two or more regional educational attendance areas as a single coastal 26 resource service area. 27 * Sec. 355. AS 46.40.120(d) is amended to read: 28  (d) For purposes of coastal zone management only, the commissioner of 29 community and economic development [REGIONAL AFFAIRS] may, after public 30 hearings held in the regional educational attendance area affected, divide an existing 31 regional educational attendance area into no more than three coastal resource service

01 areas according to geographic, cultural, economic, environmental, or other features 02 relevant to coastal management planning. However, 03  (1) each coastal resource service area formed by dividing an existing 04 regional educational attendance area must contain at least one first class city or home 05 rule city; 06  (2) a city within a coastal resource service area formed by dividing an 07 existing regional educational attendance area may not elect to exclude itself from the 08 coastal resource service area; and 09  (3) a coastal resource service area formed before June 1, 1980, may not 10 be divided for coastal management planning purposes. 11 * Sec. 356. AS 46.40.140(c) is amended to read: 12  (c) The commissioner of community and economic development [REGIONAL 13 AFFAIRS], after consultation with residents of a coastal resource service area, may 14 divide a service area into sections only for the purpose of nominating and electing 15 board members. Division of a service area into sections for the purpose of nomination 16 and election shall be in accordance with the provisions of AS 14.08.051(a). Division 17 may be proposed in the petition submitted under AS 46.40.130(a)(1), in the resolution 18 submitted under AS 46.40.130(a)(2), at the direction of the council under 19 AS 46.40.130(a)(3), or may be proposed at any time by the members of the coastal 20 resource service area board. If proposed by the board, the division of the service area 21 into sections is subject to approval of a majority of the qualified voters voting on the 22 question in the coastal resource service area at the next regular election or at a special 23 election called for that purpose and, if approved, takes effect at the next regular 24 election of members of the coastal resource service area board. 25 * Sec. 357. AS 46.40.170(a) is amended to read: 26  (a) If residents of a coastal resource service area reject organization of the 27 service area at an election called for the purpose and the council finds, after public 28 hearing, that major economic development activity has occurred or will occur within 29 the service area, the council may direct the Department of Community and Economic 30 Development [REGIONAL AFFAIRS] to prepare and recommend for consideration 31 by the council and for submission to the legislature a district coastal management

01 program for the service area. 02 * Sec. 358. AS 46.40.170(b) is amended to read: 03  (b) At the request of the council, the Department of Community and Economic 04 Development [REGIONAL AFFAIRS] shall complete the district coastal management 05 program in accordance with this chapter and the guidelines and standards adopted by 06 the council for a coastal resource service area that [WHICH] has been organized but 07 that [WHICH] has failed to make substantial progress in the preparation of an 08 approvable district coastal management program within 18 months of certification of 09 the results of an organization election or that [WHICH] has not submitted for approval 10 to the council a program within 30 months of certification of the results of its 11 organization election. Preparation of the program shall be conducted in consultation 12 with the coastal resource service area and shall, to the maximum extent consistent with 13 this chapter, reflect the expressed concerns of the residents of the service area. 14 * Sec. 359. AS 46.40.180(a) is amended to read: 15  (a) Before adoption by a coastal resource service area board, or by the 16 Department of Community and Economic Development [REGIONAL AFFAIRS] 17 under AS 46.40.170, a district coastal management program shall be submitted for 18 review to each city or village within the coastal resource service area. The council of 19 a city or traditional village council shall consider the program submitted for review. 20 Within 60 days of submission, the council of a city or traditional village council shall 21 either approve the program or enter objections to all or any portion of the program. 22 * Sec. 360. AS 46.40.180(d) is amended to read: 23  (d) For purposes of this section, "village" means an unincorporated community 24 where at least 25 persons reside as a social unit as determined by the Department of 25 Community and Economic Development [REGIONAL AFFAIRS]. 26 * Sec. 361. AS 46.40.190(a) is amended to read: 27  (a) A city within the coastal area that [WHICH] is not part of a coastal 28 resource service area shall be included for purposes of this chapter within an adjacent 29 coastal resource service area unless its governing body, by resolution adopted by a 30 majority of its membership, chooses to exclude the city from an adjacent coastal 31 resource service area and a copy of the resolution is filed with the commissioner of

01 community and economic development [REGIONAL AFFAIRS]. 02 * Sec. 362. AS 46.40.210(2) is amended to read: 03  (2) "coastal resource district" means each of the following that 04 [WHICH] contains a portion of the coastal area of the state: 05  (A) unified municipalities; 06  (B) organized boroughs of any class that [WHICH] exercise 07 planning and zoning authority; 08  (C) home rule and first class cities of the unorganized borough 09 or within boroughs that [WHICH] do not exercise planning and zoning 10 authority; 11  (D) second class cities of the unorganized borough, or within 12 boroughs that [WHICH] do not exercise planning and zoning authority, that 13 [WHICH] have established a planning commission, and that [WHICH], in the 14 opinion of the commissioner of community and economic development 15 [REGIONAL AFFAIRS], have the capability of preparing and implementing 16 a comprehensive district coastal management program under AS 46.40.030; 17  (E) coastal resource service areas established and organized 18 under AS 29.03.020 and AS 46.40.110 - 46.40.180; 19 * Sec. 363. AS 46.40.210(5) is amended to read: 20  (5) "department" means the Department of Community and Economic 21 Development [REGIONAL AFFAIRS]; 22 * Sec. 364. AS 47.05.030 is amended to read: 23  Sec. 47.05.030. MISUSE OF PUBLIC ASSISTANCE LISTS AND 24 RECORDS. Except for purposes directly connected with the administration of general 25 assistance, adult public assistance, the day care assistance program authorized under 26 AS 47.35.910 - 47.35.950 [AS 44.47.250 - 44.47.310], or aid to families with 27 dependent children, and in accordance with the regulations of the department, a person 28 may not solicit, disclose, receive, make use of, or authorize, knowingly permit, 29 participate in, or acquiesce in the use of, a list of or names of, or information 30 concerning, persons applying for or receiving the assistance directly or indirectly 31 derived from the records, papers, files, or communications of the department or

01 subdivisions or agencies of the department, or acquired in the course of the 02 performance of official duties. 03 * Sec. 365. AS 47.08.020 is amended to read: 04  Sec. 47.08.020. CATASTROPHIC ILLNESS COMMITTEE. There is created 05 the Catastrophic Illness Committee, consisting of a medical review officer from the 06 Department of Health and Social Services, a member appointed by the governor who 07 has suffered a catastrophic illness, and a representative of the Department of Revenue 08 [COMMERCE AND ECONOMIC DEVELOPMENT] appointed by the governor. 09 * Sec. 366. AS 47.18.010(c) is amended to read: 10  (c) The Department of Education, the Department of Community and 11 Economic Development [REGIONAL AFFAIRS], and the Department of Labor shall 12 assist the department in developing the plan required under (a) of this section. In 13 addition, through appropriate means, the department shall solicit advice from teens, 14 parents, educators, school administrators, taxpayers, civic groups, community 15 organizations, Native organizations, officials of local governments, religious 16 institutions, and other concerned persons about how state programs can be coordinated 17 and operated in a manner that will enhance their effectiveness and efficiency in 18 addressing the many needs associated with adolescent parenting, the prevention of 19 adolescent pregnancies, and the provision of adolescent peer counseling. 20 * Sec. 367. AS 47.25.421(c) is amended to read: 21  (c) The department may carry out the program directly or through 22 arrangements or under contracts with administrative entities involved with 29 U.S.C. 23 1501 - 1792b (Job Training Partnership Act), as amended, with state and local 24 education agencies, and with other public agencies or private organizations, including 25 community-based organizations acceptable under federal regulations. The department 26 shall contract for services under the program when feasible and in the state's interest. 27 The department may adopt regulations to govern the operation of the program 28 components that are operated under contract by other entities. Whether the department 29 operates the program directly or through contract, the department shall coordinate the 30 program with programs operated in the state under the Job Training Partnership Act 31 and with other relevant employment, training, and education programs available in the

01 state, including programs operated by Indian or Native organizations that receive grants 02 from the federal government to operate their programs under 42 U.S.C. 682(i) and 03 programs operated or funded by the Alaska Human Resources Investment Council 04 established by AS 44.19.620 through a grant from the Department of Labor. The 05 department shall consult with the Department of Education, the Department of Labor, 06 and the Department of Community and Economic Development [REGIONAL 07 AFFAIRS] to promote coordination of the planning and delivery of services under the 08 program with programs operated by those departments. 09 * Sec. 368. AS 47.25.425(c) is amended to read: 10  (c) In consultation with the Department of Community and Economic 11 Development [REGIONAL AFFAIRS] and the Department of Labor, the department 12 may initiate development of innovative public work programs designed to meet federal 13 requirements related to work activity for a person in a family that receives assistance 14 on behalf of a dependent child who is dependent because of the unemployment of the 15 primary wage earner in a two-parent family. 16 * Sec. 369. AS 47.35.900 is amended to read: 17  Sec. 47.35.900. DEFINITIONS. In AS 47.35.005 - 47.35.900 [THIS 18 CHAPTER], 19  (1) "administrator" means an individual who has general administrative 20 charge and oversight of a facility or agency; 21  (2) "agency" means a child placement agency; 22  (3) "child" means an individual under 18 years of age, and includes an 23 individual who is a relative of a care provider, administrator, or foster parent; 24  (4) "child care" means, care, supervision, and provision of 25 developmental opportunities, with or without compensation, to a child who does not 26 have a parent present; 27  (5) "child care facility" means a place where child care is regularly 28 provided for children under the age of 12 for periods of time that are less than 24 29 hours in duration unless nighttime care is authorized by the department; 30  (6) "child placement agency" means a person who arranges for 31 placement of a child

01  (A) in a foster home, residential child care facility, or adoptive 02 home; or 03  (B) for guardianship purposes; 04  (7) "department" means the Department of Health and Social Services; 05  (8) "facility" means the administration, program, and physical plant of 06 a foster home, child care facility, residential child care facility, or maternity home; 07  (9) "foster home" means a place where the adult head of household 08 provides 24-hour care on a continuing basis to one or more children who are apart 09 from their parents; 10  (10) "home study" means a written report of an investigation of the 11 prospective adoptive or foster parent or parents' ability to care for a child that has been 12 prepared in accordance with AS 25.23.100(f); 13  (11) "licensee" means a person to whom a license has been issued 14 under this chapter; 15  (12) "maternity home" means a place of residence whose primary 16 function, with or without compensation, is to give care to pregnant individuals, 17 regardless of age, before or after the individual gives birth, or that provides care, as 18 needed, to mothers and their newborn infants; 19  (13) "nonsecure attendant care setting" means an unlocked place that 20 is an alternative to an adult jail or other locked setting, where an employee, adult head 21 of household, or volunteer provides care for one or more children 10 years of age or 22 older who are under arrest and who are apart from their parents; 23  (14) "parent" means a birth or adoptive parent or a legal guardian; 24  (15) "recreational camp" means a place that provides recreational 25 opportunities to children who attend with the consent of their parent; 26  (16) "relative" means an individual who is related to another through 27 any of the following relationships, by blood, adoption, or marriage: parent, 28 grandparent, great grandparent, brother, sister, stepparent, stepsister, stepbrother, 29 cousin, aunt, uncle, great-aunt, great-uncle, or step-grandparent; 30  (17) "residential child care facility" means a place, staffed by 31 employees, where one or more children who are apart from their parents receive 24-

01 hour care on a continuing basis; 02  (18) "runaway minor" has the meaning given in AS 47.10.390; 03  (19) "shelter for runaway minors" or "shelter for runaways" means a 04 private residence whose legal occupant agrees to shelter, with or without compensation, 05 a runaway minor accepted into the residence, subject to the limitations imposed under 06 this chapter and AS 47.10.392 - 47.10.399. 07 * Sec. 370. AS 47.35 is amended by adding new sections to read: 08 ARTICLE 2. DAY CARE ASSISTANCE; CHILD CARE GRANTS. 09  Sec. 47.35.910. DAY CARE POWERS AND DUTIES. (a) The department 10 shall 11  (1) implement and administer a program to assist in providing day care 12 for the children of low and moderate income families according to the requirements 13 of AS 47.35.910 - 47.35.929; 14  (2) establish standards of eligibility for day care benefits; 15  (3) contract for the care of children of eligible families; 16  (4) establish procedures to periodically review the needs of families 17 receiving day care benefits; 18  (5) provide notification to the local government body of the request for 19 a contract with a day care facility. 20  (b) The department may 21  (1) adopt regulations necessary for the performance of its duties under 22 AS 47.35.910 - 47.35.929; 23  (2) contract with other entities to perform duties of the department 24 under AS 47.35.910 - 47.35.929 within an area specified by the department; within an 25 area, the department shall give higher priority to contracting with municipalities than 26 with other organizations. 27  Sec. 47.35.912. ADMINISTRATIVE COSTS OF PROGRAM 28 CONTRACTORS. To defray administrative expenses, a contractor under 29 AS 47.35.910(b) may only retain $1,000 or 12 percent, whichever is greater, of the day 30 care assistance program funds it receives from the department under the contract. 31  Sec. 47.35.914. CONDITIONS OF RECEIPT OF BENEFITS. Benefits may

01 be paid for the care of children of a low or moderate income family only if a parent 02 or guardian, because of the day care, is freed to work or to seek work or to attend 03 school. Benefits may not be paid for the care of children of a family where one parent 04 or guardian is not working, actively seeking work, or attending school, and is 05 physically and mentally capable of caring for the children. 06  Sec. 47.35.916. ELIGIBILITY OF FAMILIES FOR BENEFITS. The 07 department shall determine the eligibility of families for day care benefits on the basis 08 of the following factors: 09  (1) net income of the family including salary, alimony, child support, 10 retirement benefits, social security, and any other source of income; 11  (2) number of children in the family; 12  (3) whether there is one parent or guardian solely responsible for the 13 care of the family; 14  (4) other factors found relevant by the department. 15  Sec. 47.35.918. CONTRIBUTIONS BY PARENT OR GUARDIAN. The 16 department shall develop a sliding fee scale based on the factors listed in AS 47.35.916 17 for purposes of determining the amount to be contributed by the parent or guardian for 18 child care. The contribution of the parent or guardian shall be paid to the day care 19 facility. 20  Sec. 47.35.920. PLACEMENT; PAYMENT BY STATE. (a) Parents or 21 guardians shall select the day care facility for the care of their children. 22  (b) Benefits shall be paid by the department directly to the municipality or 23 organization contracting with the day care facility. 24  Sec. 47.35.922. CHILD CARE GRANT PROGRAM. (a) A child care grant 25 program is established in the department to provide state assistance in the operation 26 of child care facilities. The department shall provide grants for the operation of child 27 care facilities, including private nonprofit child care facilities. Participation in the 28 program is optional. 29  (b) To qualify for a grant under (a) or (d) of this section, the child care facility 30 must 31  (1) be currently licensed under AS 47.35.005 - 47.35.900 and

01 applicable municipal licensing requirements; 02  (2) participate in the day care assistance program under AS 47.35.910 - 03 47.35.929; and 04  (3) provide care under a payment system as provided in (g) of this 05 section. 06  (c) A grant under (a) of this section may not exceed $50 a month for each 07 child the child care facility cares for, or for each full-time equivalent, as determined 08 by the department. The grant shall be adjusted on a geographic basis by the same 09 percentages as instructional unit allotments are adjusted under AS 14.17.051. 10  (d) In addition to the grants provided in (a) of this section, the department 11 may, subject to appropriations for that purpose, provide by grant or contract for the 12 education and training of child care employees or administrators. To receive a grant 13 or contract under this subsection or to participate in a training program under this 14 subsection, the child care facility must meet all the requirements of (b) of this section. 15  (e) An application for a grant under this section shall be made in the form 16 established by the department. 17  (f) A grant under (a) of this section shall be made monthly or quarterly and 18 shall be based on the monthly average daily full-time equivalent enrollment in the 19 child care facility. If the method of payment for the grant is other than monthly, it 20 shall be at the request of the child care facility with the approval of the department. 21 Based on criteria established by the department, the department may make quarterly 22 advance payments. 23  (g) Each child care facility receiving a grant under (a) or (d) of this section 24 shall assure that at least 15 percent or one of its child care spaces receiving subsidy 25 under this section, whichever is greater, will be made available, if requested, to 26 children eligible for day care assistance under AS 47.35.910 - 47.35.929, whose 27 parents or guardians wish to pay for care based on attendance only. 28  (h) The commissioner shall, in consultation with interested child care providers 29 and parents, adopt regulations to carry out the purposes of this section. 30  Sec. 47.35.929. DEFINITIONS. In AS 47.35.910 - 47.35.929, 31  (1) "child" means a person below 13 years of age, or a minor who has

01 a developmental disability; 02  (2) "child care facility" means an establishment licensed under 03 AS 47.35.005 - 47.35.900 including but not limited to day care centers, family day 04 care homes, and schools for preschool age children, which provides care for children 05 not related by blood, marriage, or legal adoption to the owner, operator, or manager 06 of the facility; 07  (3) "day care" means the care, supervision, and guidance of a child or 08 children unaccompanied by a parent or legal guardian on a regular basis for periods 09 of less than 24 hours a day; 10  (4) "day care facility" means a center or home licensed in accordance 11 with the provisions of AS 47.35.005 - 47.35.900 or recognized by the federal 12 government for the care of children; 13  (5) "department" means the Department of Health and Social Services; 14  (6) "developmental disability" means a disability under which a person 15 is incapable of self-care, as verified by a physician or licensed or certified psychologist 16 who has examined the person. 17 ARTICLE 3. CHILD CARE FACILITY REVOLVING LOAN FUND. 18  Sec. 47.35.935. CHILD CARE FACILITY REVOLVING LOAN FUND. (a) 19 There is in the Department of Health and Social Services the child care facility 20 revolving loan fund to carry out the purposes of AS 47.35.935 - 47.35.949. Except 21 as provided in (b) and (c) of this section, the fund may not be used for any other 22 purpose. 23  (b) The department may use money in the fund for costs of administering 24 AS 47.35.935 - 47.35.949. 25  (c) On June 30 of each fiscal year the unexpended and unobligated cash 26 balance of the fund that is attributable to loans owned by the fund lapses into the 27 general fund. 28  Sec. 47.35.937. SPECIAL ACCOUNT ESTABLISHED. (a) There is 29 established as a special account within the child care facility revolving loan fund the 30 foreclosure expense account. This account is established as a reserve from fund 31 equity.

01  (b) The commissioner of health and social services may expend money 02 credited to the foreclosure expense account when necessary to protect the state's 03 security interest in collateral on loans made under AS 47.35.939 or to defray expenses 04 incurred during foreclosure proceedings after a default by an obligor. 05  Sec. 47.35.939. POWERS AND DUTIES OF THE DEPARTMENT IN 06 ADMINISTERING THE FUND. (a) The department may 07  (1) make loans for the construction, renovation, and equipping of child 08 care facilities, including private nonprofit child care facilities; 09  (2) adopt regulations necessary to carry out the provisions of 10 AS 47.35.935 - 47.35.949, including regulations to establish reasonable fees for 11 services provided and charges for collecting the fee; and 12  (3) collect the fees and charges established under this subsection. 13  (b) The department shall 14  (1) develop eligibility standards for loans to child care facilities; 15  (2) adopt guidelines for the determination of loan terms. 16  Sec. 47.35.941. LOAN TERMS. (a) A loan to a child care facility under 17 AS 47.35.935 - 47.35.949 may not exceed $50,000. 18  (b) The rate of interest charged shall be seven percent a year on the unpaid 19 balance of the loan. 20  (c) The duration for repayment of a loan may not exceed 20 years. 21  (d) All principal and interest payments, and any money chargeable to principal 22 or interest that is collected through liquidation by foreclosure or other process on 23 loans made under AS 47.35.935 - 47.35.949, shall be paid into the child care facility 24 revolving loan fund. 25  (e) If a child care facility ceases operation, any loan to the facility from the 26 fund is due on the date the facility ceases operation. 27  Sec. 47.35.943. ELIGIBILITY FOR LOANS. A child care facility is eligible 28 for a loan under AS 47.35.935 - 47.35.949 if 29  (1) the applicant submits to the department a plan for the use of the 30 loan funds that is approved by the commissioner; and 31  (2) the applicant meets additional eligibility standards established by

01 the department under AS 47.35.939(b)(1). 02  Sec. 47.35.945. SALE OR TRANSFER OF MORTGAGES AND NOTES. 03 The commissioner of health and social services may sell or transfer at par value or at 04 a premium to a bank or other private purchaser for cash or other consideration the 05 mortgages and notes held by the department as security for loans made under 06 AS 47.35.935 - 47.35.949. 07  Sec. 47.35.947. DISPOSAL OF PROPERTY ACQUIRED BY DEFAULT OR 08 FORECLOSURE. The department shall dispose of property acquired through default 09 or foreclosure of a loan made under AS 47.35.935 - 47.35.949. Disposal shall be 10 made in a manner that serves the best interests of the state, and may include the 11 amortization of payments over a period of years. 12  Sec. 47.35.949. DEFINITIONS. In AS 47.35.935 - 47.35.949, 13  (1) "child care facility" means an establishment the principal purpose 14 of which is to provide care for children not related by blood, marriage, or legal 15 adoption, including but not limited to day care centers, family day care homes, and 16 schools for preschool age children; 17  (2) "department" means the Department of Health and Social Services. 18 * Sec. 371. AS 47.80.090 is amended to read: 19  Sec. 47.80.090. RESPONSIBILITIES. The council shall 20  (1) serve as a forum by which issues and benefits regarding current and 21 potential services to disabled and gifted persons may be discussed by consumer, public, 22 private, professional, and lay interests; 23  (2) advocate the needs of disabled and gifted persons before the 24 executive and legislative branches of the state government and before the public; 25  (3) advise the executive and legislative branches of the state 26 government and the private sector on programs and policies pertaining to current and 27 potential services to disabled or gifted persons and their families; 28  (4) submit periodic reports to the commissioner of health and social 29 services, the commissioner of education, and to other appropriate departments, on the 30 effects of current federal and state programs regarding services to disabled or gifted 31 persons; these reports must include program performance reports to the governor, the

01 federal government, and to state agencies as required under 20 U.S.C. 1482 and 42 02 U.S.C. 6024; 03  (5) in conjunction with the Departments of Health and Social Services 04 and Education, develop, prepare, adopt, periodically review, and revise as necessary 05 an annual state plan prescribing programs that meet the needs of persons with 06 developmental disabilities as required under 42 U.S.C. 6022; 07  (6) review and comment to commissioners of state departments on all 08 state plans and proposed regulations relating to programs for persons who are 09 experiencing disabilities before the adoption of a plan or regulation; for this purpose, 10 the appropriate departments shall submit the plans and proposed regulations to the 11 council; 12  (7) recommend the priorities and specifications for the use of funds 13 received by the state under 20 U.S.C. 1471 - 1485 and 42 U.S.C. 6000 - 6083; 14  (8) submit annually to the commissioner of health and social services, 15 the commissioner of education, and the commissioner of community and economic 16 development [REGIONAL AFFAIRS] a proposed interdepartmental program budget 17 for services to disabled or gifted persons that includes, insofar as possible, projected 18 revenues and expenditures for programs implemented by state agencies, local 19 governmental agencies, and private organizations; the interdepartmental program 20 budget is an informational supplement to the regular annual budgetary submissions of 21 the departments to the Office of the Governor; 22  (9) provide information and guidance for the development of 23 appropriate special educational programs and services for exceptional children as 24 defined in AS 14.30.350; 25  (10) monitor and evaluate budgets or other implementation plans and 26 programs for disabled and gifted persons to assure nonduplication of services and 27 encourage efficient and coordinated use of federal, state, and private resources in the 28 provision of services; members of the council, with the approval of the council, have 29 access to information in the possession of state agencies subject to disclosure 30 restrictions imposed by state or federal confidentiality or privacy laws; 31  (11) perform other duties required under applicable federal laws or

01 AS 14.30.231 and as the governor may assign; [AND] 02  (12) govern the special education service agency and may hire 03 personnel necessary to operate the agency; and [.] 04  (13) provide to the Alaska Mental Health Trust Authority for its review 05 and consideration recommendations concerning the integrated comprehensive mental 06 health program for the people of the state who are described in AS 47.30.056(b)(2) and 07 the use of the money in the mental health trust income account in a manner consistent 08 with regulations adopted under AS 47.30.031. 09 * Sec. 372. AS 47.90.040 is amended to read: 10  Sec. 47.90.040. CONSULTATION AND COORDINATION. The 11 commissioner shall consult and cooperate with the Department of Health and Social 12 Services; the Department of Education, including the division of vocational 13 rehabilitation; the University of Alaska, community colleges, and other colleges as 14 appropriate; [THE DEPARTMENT OF LABOR, INCLUDING THE DIVISION OF 15 EMPLOYMENT SECURITY;] and other persons or agencies that the commissioner 16 considers appropriate in the implementation of this chapter. 17 * Sec. 373. AS 47.90.070(1) is amended to read: 18  (1) "commissioner" means the commissioner of labor [COMMUNITY 19 AND REGIONAL AFFAIRS]; 20 * Sec. 374. Section 7(b), ch. 95, SLA 1989, as amended by sec. 13, ch. 61, SLA 1995, is 21 amended to read: 22  (b) If a grant is awarded to the council, the department shall annually provide 23 to the council a priority list of targeted projects or services, based on unemployment 24 statistics, unemployment insurance claims, occupational and industrial projections, 25 availability of other training and employment programs, and other relevant data. The 26 department shall also provide annually to the council a priority list of criteria for 27 eligibility to maximize services to those people most in need of training under this Act. 28 In developing the priority list for targeted projects and services, the department shall 29 solicit comments from the [DEPARTMENT OF COMMUNITY AND REGIONAL 30 AFFAIRS,] Department of Education, Department of Community [COMMERCE] and 31 Economic Development, University of Alaska, organized labor, the council, and the

01 administrative entities of the substate service delivery areas established for the council. 02 * Sec. 375. REPEALER. AS 29.71.800(5), 29.71.800(8); AS 44.17.005(17); AS 44.33.240, 03 44.33.242, 44.33.245, 44.33.255, 44.33.260, 44.33.270, 44.33.272, 44.33.275, and 44.33.431; 04 and AS 44.47 are repealed. 05 * Sec. 376. TRANSITIONAL PROVISIONS. (a) Litigation, hearings, investigations, and 06 other proceedings pending under a law repealed or amended by this Act, or in connection with 07 functions transferred by this Act, continue in effect and may be completed notwithstanding 08 a transfer or repeal provided for in this Act. 09 (b) Regulations in effect on June 30, 1997, that were adopted to implement a function 10 that is transferred by this Act remain in effect and shall be enforced by the agency to which 11 the function is transferred under this Act until amended by the agency to which the function 12 is transferred. 13 (c) Wherever in Alaska Statutes affected by this Act there is a reference to regulations 14 adopted under a section of law and there are no regulations adopted under that section because 15 previous regulations adopted under another section are being enforced under (b) of this 16 section, the reference shall be construed to refer to the previously adopted regulations until 17 they are amended by the new agency. 18 (d) Contracts, rights, liabilities, and obligations created by or under a law repealed or 19 amended by this Act, and in effect on June 30, 1997, remain in effect notwithstanding this 20 Act's taking effect. 21 (e) Records, equipment, appropriations, and other property of an agency of the state 22 whose functions are transferred under this Act shall be transferred to implement the provisions 23 of this Act. 24 * Sec. 377. This Act takes effect July 1, 1997.