HB 427: "An Act establishing the office of tax appeals in the Department of Administration; revising the procedures for formal hearing of certain tax appeals, including appeals regarding seafood marketing assessments; providing for the release of agency records relating to formal administrative tax appeals; relating to litigation disclosure of public records; clarifying administrative subpoena power in certain tax matters; and providing for an effective date."
00HOUSE BILL NO. 427 01 "An Act establishing the office of tax appeals in the Department of 02 Administration; revising the procedures for formal hearing of certain tax appeals, 03 including appeals regarding seafood marketing assessments; providing for the 04 release of agency records relating to formal administrative tax appeals; relating 05 to litigation disclosure of public records; clarifying administrative subpoena power 06 in certain tax matters; and providing for an effective date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. FINDINGS AND PURPOSES. (a) The legislature finds, with respect to 09 appeals of taxes assigned to the Department of Revenue, that 10 (1) while courts have traditionally upheld the power of administrative agencies 11 to perform the combined functions of tax audit and adjudication of tax appeals, certain 12 taxpayers have perceived the combination of these functions within the Department of 13 Revenue as unfair; 14 (2) the commissioner of revenue is frequently faced with the question of
01 withdrawal from the management of or participation in a tax matter in order to maintain quasi- 02 judicial independence when the matter is appealed to the commissioner; and 03 (3) these tax appeal proceedings should be made public in order to promote 04 open government and because the public has an interest in the proceedings. 05 (b) The purposes of this Act are to 06 (1) provide a forum not subject to the supervision of the commissioner of 07 revenue in which tax matters may be heard de novo in a formal recorded proceeding; 08 (2) help ensure that adjudicative decisions on formal administrative appeals of 09 tax matters assigned to the Department of Revenue will be free from political influence and 10 based upon the facts and the law; 11 (3) preserve for the commissioner of revenue the traditional role of policy 12 formulation for revenue tax matters; 13 (4) not interfere with the proper exercise of the discretion of the commissioner 14 of revenue in revenue tax matters; 15 (5) encourage taxpayers to provide all information pertinent to their taxes to 16 the Department of Revenue, so that its auditors and other staff may properly determine the 17 correct tax before the matter is appealed; and 18 (6) streamline tax appeal procedures and resolve disputes more efficiently by 19 encouraging earlier exchange of information between the taxpayer and the Department of 20 Revenue. 21 * Sec. 2. AS 44.21 is amended by adding new sections to read: 22 ARTICLE 9. OFFICE OF TAX APPEALS. 23 Sec. 44.21.600. OFFICE OF TAX APPEALS ESTABLISHED. The office of 24 tax appeals is established within the department. 25 Sec. 44.21.605. JURISDICTION. The office of tax appeals has original and 26 exclusive jurisdiction to hear formal appeals from informal conference decisions of the 27 Department of Revenue under AS 43.05.240. Appeal to the office may be taken only 28 from an informal conference decision under AS 43.05.240. Jurisdiction of the office 29 is limited to, and this chapter applies to and governs, an administrative appeal 30 regarding 31 (1) electric and telephone cooperative taxes under AS 10.25;
01 (2) a seafood marketing assessment under AS 16.51; 02 (3) all taxes levied under AS 43, except the property tax assessed under 03 AS 43.56; and 04 (4) any other taxes administered by the Department of Revenue. 05 Sec. 44.21.610. ADMINISTRATION. (a) The commissioner shall appoint a 06 chief administrative law judge of the office of tax appeals. The initial term for a chief 07 administrative law judge is two years. A chief administrative law judge may be 08 appointed to subsequent terms of four years each. The chief administrative law judge 09 may be removed only for cause during the term of appointment. The chief 10 administrative law judge shall exercise general supervision of the office. 11 (b) The chief administrative law judge may, with the approval of the 12 commissioner, select and appoint additional administrative law judges and other staff 13 for the office. 14 (c) The chief administrative law judge may adopt regulations implementing or 15 interpreting AS 44.21.600 - 44.21.675, including rules of procedure and evidence for 16 proceedings before the office. 17 (d) An administrative law judge, including the chief administrative law judge, 18 may preside over a proceeding and carry out any procedures authorized under 19 AS 44.21.600 - 44.21.675. 20 Sec. 44.21.615. QUALIFICATIONS; CODE OF CONDUCT. (a) An 21 administrative law judge, including the chief administrative law judge, at the time of 22 appointment, must 23 (1) be licensed to practice law in this state or another state; and 24 (2) have experience in the field of tax law or tax administration. 25 (b) A person appointed as an administrative law judge under AS 44.21.610 26 who is not licensed to practice law in this state at the time of appointment must 27 become licensed to practice law in this state within 12 months after appointment or 28 shall cease to hold office. 29 (c) Except as provided in (b) of this section, an administrative law judge, 30 including the chief administrative law judge, shall comply with the Alaska code of 31 judicial conduct and remain licensed to practice law in this state.
01 Sec. 44.21.620. NOTICE OF APPEAL FROM INFORMAL CONFERENCE 02 DECISION. An appeal under the jurisdiction of the office is initiated by filing with 03 the office, and serving upon the commissioner of revenue, a notice of appeal from an 04 informal conference decision of the Department of Revenue under AS 43.05.240. A 05 notice of appeal from the informal conference decision may be filed or amended after 06 the time for filing has expired only if good cause is shown. 07 Sec. 44.21.625. SCOPE AND STANDARDS FOR DECISION. The 08 administrative law judge shall hear all questions de novo. The administrative law 09 judge shall 10 (1) resolve a question of fact by a preponderance of the evidence, or 11 by a different standard of proof that has been set by law for a particular question; the 12 findings of fact of the informal conference decision are presumed correct unless the 13 taxpayer rebuts the findings; 14 (2) resolve a question of law in the exercise of the independent 15 judgment of the administrative law judge; 16 (3) defer to the Department of Revenue on a question as to a matter 17 committed to the discretion of the Department of Revenue, unless not supported by a 18 reasonable basis. 19 Sec. 44.21.630. SERVICE OF DOCUMENTS. Service of documents required 20 under AS 44.21.610 - 44.21.675 may be accomplished in any manner authorized under 21 the rules of civil procedure for a court of this state. If service is done only by mail, 22 the date of service is determined by the date of mailing. If service is done by both 23 mail and hand delivery, the date of service is determined by the earlier of the date of 24 mailing or actual receipt of the documents. 25 Sec. 44.21.635. DISCOVERY. (a) In an appeal under AS 44.21.605, 26 discovery may take place only under a plan for discovery approved by the 27 administrative law judge. The administrative law judge may approve a plan for 28 discovery to the extent consistent with the efficient, just, and speedy conduct of the 29 appeal. The plan may limit or set conditions on discovery. If discovery is permitted, 30 it shall be limited to information relevant to the determination of the correct tax or 31 penalty. The administrative law judge may grant exceptions to the requirements of this
01 subsection in the interest of justice. 02 (b) Requests by the taxpayer for disclosure of public records relating to the 03 appeal are governed by, and the records are disclosed only in accordance with, the plan 04 approved under this section. 05 (c) Legislative history, reported court decisions, statutes, regulations, or similar 06 documents available for public inspection at a library or the Office of the Lieutenant 07 Governor or through a publicly accessible database must be obtained through those 08 means and may not be sought through discovery. 09 Sec. 44.21.640. SUBPOENAS. An administrative law judge may issue a 10 subpoena to compel attendance of a witness or the production of a document or thing. 11 A subpoena may compel attendance of a witness or production of a document or thing, 12 located either inside or outside the state, to the maximum extent permitted by law. A 13 subpoena may be used for the purpose of discovery or for the purpose of presenting 14 evidence at a formal hearing. A subpoena shall issue upon request of a party, subject 15 to reasonable limitation or conditions set in the subpoena. A subpoena may be 16 enforced by petition to or other appropriate legal proceeding brought in a court of this 17 state or another jurisdiction. 18 Sec. 44.21.645. FORMAL HEARING. (a) At or before the formal hearing, 19 a party may present argument and evidence relevant to the amount of the tax or 20 penalty due to be paid to the state. The administrative law judge may administer oaths 21 and permit inquiry necessary to determine the amount of the tax or penalty due to be 22 paid to the state. 23 (b) Each party and witness shall be present during the formal hearing, except 24 that 25 (1) the administrative law judge may conduct all or part of the hearing 26 by telephone, audio or video teleconference, or other electronic medium; and 27 (2) with the consent of the parties and the administrative law judge, all 28 or part of the hearing may be conducted through correspondence. 29 (c) The taxpayer bears the burden of proof on questions of fact by a 30 preponderance of the evidence, unless a different standard of proof has been set by law 31 for a particular question.
01 (d) The formal hearing before the administrative law judge is not required to 02 be conducted with strict adherence to the Alaska Rules of Evidence. Relevant 03 evidence must be admitted if it is probative of a material fact in controversy. 04 Irrelevant and unduly repetitious evidence shall be excluded. Hearsay evidence is 05 admissible if it is the kind of evidence on which responsible persons are accustomed 06 to rely in the conduct of serious affairs, regardless of the existence of a common law 07 or statutory rule that makes improper the admission of the evidence over objection in 08 a civil action. Oral evidence may be taken only on oath or affirmation. The rules of 09 privilege are effective to the same extent that they are recognized in a civil action in 10 the courts of this state. 11 (e) Evidence on the following subjects is irrelevant and may not be admitted: 12 (1) history of legislative provisions that have not been enacted; 13 (2) history of a draft regulation that has not been adopted; 14 (3) information of a taxpayer, other than the taxpayer whose tax 15 liability is the subject of the appeal, that is confidential under state law, including AS 16 43. 17 (f) The administrative law judge shall make a record of the proceedings of the 18 appeal, including recordation of the proceedings of a formal hearing by electronic or 19 stenographic means. 20 (g) The administrative law judge may grant exceptions to the requirements of 21 this section in the interest of justice. 22 Sec. 44.21.650. ENFORCEMENT. (a) The administrative law judge and each 23 party is responsible for the efficient, just, and speedy conduct of the formal hearing. 24 The administrative law judge may impose sanctions on the parties for failure to comply 25 with a subpoena, an order respecting discovery, and any other matter regarding conduct 26 of the appeal. 27 (b) The administrative law judge may 28 (1) remand the matter for consideration of new information or 29 information withheld by a party; 30 (2) prohibit a party from introducing the new information or 31 information previously withheld, and any other evidence dependent upon the
01 information; 02 (3) enter an order 03 (A) barring a designated claim or defense; 04 (B) striking part or all of a pleading of a party; or 05 (C) dismissing part or all of the appeal; or 06 (4) grant such other relief as the administrative law judge considers 07 appropriate. 08 (c) In addition to the remedies of (a) and (b) of this section, a party may seek 09 enforcement of a subpoena or other order of an administrative law judge by the 10 superior court under AS 44.62.590. 11 Sec. 44.21.655. DECISION; RECONSIDERATION; FINALITY. (a) Within 12 180 days after the record on the appeal is closed, the administrative law judge shall 13 issue a decision in writing. The decision shall contain a concise statement of reasons 14 for the decision, including findings of fact and conclusions of law. In the decision, the 15 administrative law judge may grant relief, provide remedies, and issue any order that 16 is appropriate. The administrative law judge shall serve each party in the case with 17 a copy of the decision. Unless reconsideration is ordered under (c) of this section, the 18 decision under this subsection is the final administrative decision. 19 (b) A party may request reconsideration of a decision issued under (a) of this 20 section within 10 days after the date of service shown in the certificate of service of 21 the decision. The request must state specific grounds for reconsideration. 22 Reconsideration may be granted if, in reaching the decision, the administrative law 23 judge has 24 (1) overlooked, misapplied, or failed to consider a statute, regulation, 25 court or administrative decision, or legal principle directly controlling; 26 (2) overlooked or misconceived some material fact or proposition of 27 law; 28 (3) misconceived a material question in the case; or 29 (4) applied law in the ruling that has subsequently changed. 30 (c) The administrative law judge may issue an order for reconsideration of all 31 or part of the decision upon request of a party, or on the administrative law judge's
01 own initiative. Reconsideration is based on the record, unless the administrative law 02 judge allows additional evidence and argument. A hearing on reconsideration at which 03 additional evidence or argument is offered or received is subject to the procedures 04 applicable to a hearing under AS 44.21.645. 05 (d) The power to order reconsideration expires 30 days after the date of 06 service, as shown on the certificate of service, of a decision issued under (a) of this 07 section. If the administrative law judge does not issue an order for reconsideration 08 within the time allowed for ordering reconsideration, a motion for reconsideration is 09 considered denied. 10 (e) Within 60 days after the close of the record on reconsideration, the 11 administrative law judge shall issue a written decision upon reconsideration. The 12 administrative law judge shall serve each party in the case with a copy of the decision 13 upon reconsideration. The decision upon reconsideration is the final administrative 14 decision. 15 (f) An administrative decision becomes final either on the date 16 (1) 30 days after the date of service of a decision issued under (a) of 17 this section, if no order for reconsideration is issued; or 18 (2) the decision upon reconsideration is served, as shown by the 19 certificate of service executed by the administrative law judge under (e) of this section. 20 Sec. 44.21.660. PUBLIC PROCEEDINGS AND RECORDS. (a) Records, 21 proceedings, and decisions under AS 44.21.600 - 44.21.675 are public records and 22 open to the public. Upon a showing of good cause, an administrative law judge may 23 issue a protective order requiring that specified parts of the records, proceeding, or 24 decision shall be kept confidential in a particular appeal. If a protective order is 25 issued, the final administrative decision shall be made public after redacting by 26 deletion or substitution of information as required by the protective order. 27 (b) The department, in consultation with the chief administrative law judge, 28 shall maintain, index, and make available for public inspection the final administrative 29 decisions, proceedings, and records of the office made public under this section. 30 Sec. 44.21.665. CONSISTENCY OF DECISIONS. (a) As to questions of 31 law, a final administrative decision issued under AS 44.21.600 - 44.21.675, unless
01 reversed or overruled, has the force of legal precedent. 02 (b) To promote consistency among legal determinations issued under 03 AS 44.21.600 - 44.21.675, the chief administrative law judge may review and circulate 04 among the other administrative law judges the drafts of formal decisions, decisions 05 upon reconsideration, and other legal opinions of the other administrative law judges 06 in the office. The drafts are confidential documents and are not subject to disclosure 07 under AS 09.25.100 - 09.25.220 or this chapter. 08 Sec. 44.21.670. JUDICIAL REVIEW. (a) Judicial review by the superior 09 court of a final administrative decision may be had by a party to the appeal under this 10 chapter by filing a notice of appeal in accordance with the applicable rules of court 11 governing appeals to that court in civil matters. The notice of appeal shall be filed 12 within 30 days after an administrative decision becomes final under AS 44.21.655. 13 The right to judicial review under this section is not affected by the failure to seek 14 reconsideration before the administrative law judge. 15 (b) The amount due must be paid or refunded within 30 days after the date 16 that the final administrative decision becomes final under AS 44.21.655. In place of 17 payment of the amount due, a taxpayer who has appealed a final administrative 18 decision may file a bond with the court or otherwise obtain relief from payment in 19 accordance with the Alaska Rules of Appellate Procedure. 20 (c) Appeals under this section are reviewed under AS 44.62.560 and 44.62.570. 21 (d) If, after the appeal is heard, it appears that the final administrative decision 22 was correct, the court shall affirm the decision. If incorrect, the court shall determine 23 the amount due. If the taxpayer is entitled to a refund, the court shall order the 24 repayment and the Department of Revenue shall pay the amount due and attach a 25 certified copy of the judgment to the payment. If the court determines that the 26 taxpayer owes an additional amount, the court shall order the payment and the 27 taxpayer shall pay the amount due and attach a certified copy of the judgment to the 28 payment. Any payment required under this subsection shall be paid by the 30th day 29 following the expiration of the time within which an appeal from the superior court 30 decision may be filed, unless the party appealing files a bond or otherwise obtains 31 relief from payment in accordance with the Alaska Rules of Appellate Procedure.
01 Sec. 44.21.675. DEFINITIONS. In AS 44.21.600 - 44.21.675, unless the 02 context otherwise requires, 03 (1) "administrative law judge" means an administrative law judge 04 appointed under AS 44.21.610; 05 (2) "commissioner" means the commissioner of the Department of 06 Administration; 07 (3) "de novo" means a new trial of record before an administrative law 08 judge with opportunity for each party to present evidence and argument according to 09 rules of procedure and evidence under AS 44.21.600 - 44.21.675; 10 (4) "department" means the Department of Administration; 11 (5) "discovery" means the use of subpoenas, subpoenas duces tecum, 12 interrogatories, requests for production, requests for admission, depositions, and other 13 methods of civil procedure by which one party to an appeal may discover information 14 within the knowledge and control of another person; 15 (6) "legislative history" means the documents of the legislature 16 recording the background and events, including draft bills, correspondence and 17 memoranda, committee reports, tapes and transcripts of hearings, and tapes and 18 transcripts of floor debate, concerning consideration of a bill; 19 (7) "office" means office of tax appeals in the department; 20 (8) "party" means the Department of Revenue and the taxpayer; 21 (9) "proceeding" means only a proceeding under the jurisdiction of the 22 office; 23 (10) "subpoena" means a command to appear at a certain time and 24 place to testify, or to appear at a certain time and place to produce books, papers and 25 other things, and testify; 26 (11) "tax" includes a seafood marketing assessment under AS 16.51; 27 (12) "taxpayer" includes a person required to pay a seafood marketing 28 assessment under AS 16.51. 29 * Sec. 3. AS 09.25.100 is amended to read: 30 Sec. 09.25.100. DISPOSITION OF TAX INFORMATION. Information in the 31 possession of the Department of Revenue that discloses the particulars of the business
01 or affairs of a taxpayer or other person is not a matter of public record, except for 02 purposes of investigation and law enforcement. The information shall be kept 03 confidential except when its production is required in an official investigation, 04 administrative adjudication under AS 44.21, or court proceeding. These restrictions 05 do not prohibit the publication of statistics presented in a manner that prevents the 06 identification of particular reports and items, [OR] prohibit the publication of tax lists 07 showing the names of taxpayers who are delinquent and relevant information that may 08 assist in the collection of delinquent taxes, or prohibit the publication of records, 09 proceedings, and decisions under AS 44.21. 10 * Sec. 4. AS 09.25.122 is amended to read: 11 Sec. 09.25.122. LITIGATION DISCLOSURE. A public record that is subject 12 to disclosure and copying under AS 09.25.110 - 09.25.120 remains a public record 13 subject to disclosure and copying even if the record is used for, included in, or relevant 14 to litigation, including law enforcement proceedings, involving a public agency, except 15 that with respect to a person involved in litigation, the records sought shall be 16 disclosed in accordance with the rules of procedure applicable in a court or an 17 administrative adjudication [RULES]. In this section, "involved in litigation" means 18 a party to litigation or representing a party to litigation, including obtaining public 19 records for the party. 20 * Sec. 5. AS 39.25.120(c) is amended by adding a paragraph to read: 21 (25) the chief administrative law judge and any other administrative law 22 judges appointed to the office of tax appeals of the Department of Administration 23 under AS 44.21. 24 * Sec. 6. AS 43.05.010 is amended to read: 25 Sec. 43.05.010. DUTIES OF COMMISSIONER. The commissioner of 26 revenue shall 27 (1) exercise general supervision and direct the activities of the 28 Department of Revenue; 29 (2) supervise the fiscal affairs and responsibilities of the department; 30 (3) prescribe uniform rules for investigations and hearings; 31 (4) keep a record of all departmental proceedings, record and file all
01 bonds and assume custody of returns, reports, papers, and documents of the 02 department; 03 (5) [REPEALED 04 (6)] adopt a seal and affix it to each order, process, or certificate issued 05 by the commissioner; 06 (6) [(7)] keep a record of each order, process, and certificate issued by 07 the commissioner, and keep the record open to public inspection at all reasonable 08 times; 09 (7) [(8)] hold hearings and investigations necessary for the 10 administration of state tax and revenue laws; 11 (8) [(9)] except as provided in AS 44.21, hear and determine appeals 12 of a matter within the jurisdiction of the Department of Revenue [INVOLVING 13 INCOME, EXCISE, LICENSE, OR OTHER TAXES LEVIED UNDER STATE 14 LAWS] and enter orders on the appeals that are final unless reversed or modified by 15 the courts; 16 (9) [(10)] issue subpoenas to require the attendance of witnesses and 17 the production of necessary books, papers, documents, correspondence and other things 18 [EVIDENCE AT HEARINGS]; 19 (10) [(11)] order the taking of depositions before a person competent 20 to administer oaths; 21 (11) [(12)] administer oaths and take acknowledgments; 22 (12) [(13)] request the attorney general for rulings on the interpretation 23 of the tax and revenue laws administered by the department; 24 (13) [(14)] call upon the attorney general to institute actions for 25 recovery of unpaid taxes, fees, excises, additions to tax, penalties, and interest; 26 (14) [(15)] issue warrants for the collection of unpaid tax penalties and 27 interest and take all steps necessary and proper to enforce full and complete 28 compliance with the tax, license, excise, and other revenue laws of the state; 29 (15) [(16)] audit reports, payments, and payments due relating to 30 royalty and net profits under oil and gas contracts, agreements, or leases under 31 AS 38.05[;
01 (17) REPEALED]. 02 * Sec. 7. AS 43.05.040 is amended to read: 03 Sec. 43.05.040. INSPECTION OF RECORDS OR PREMISES AND 04 ISSUANCE OF SUBPOENAS. (a) The department may examine the books, papers, 05 records, or memoranda of any person to ascertain the correctness of a return filed or 06 to determine whether a tax or a payment for oil or gas royalty or net profits shares 07 under a contract, agreement, or lease under AS 38.05 is due, or in an investigation or 08 inspection in connection with tax matters or matters relating to oil and gas royalty or 09 net profits under contracts, agreements, or leases under AS 38.05. The records and the 10 premises where a business is conducted shall be open at all reasonable times for 11 official inspection, and the department may subpoena any person to appear and 12 produce books, records, papers, or memoranda bearing upon tax matters or matters 13 relating to oil and gas royalty or net profits under contracts, agreements, or leases 14 under AS 38.05, and to give testimony or answer interrogatories under oath respecting 15 tax matters or matters related to oil and gas royalty or net profits under contracts, 16 agreements, or leases under AS 38.05, and the department may administer oaths to 17 persons who are so subpoenaed. A subpoena issued under this section may compel 18 attendance of a witness or production of a document or thing, located either 19 inside or outside the state, to the maximum extent permitted by law. 20 (b) A subpoena may be served by the commissioner of public safety or a peace 21 officer designated by the commissioner of public safety, [OR] by a person designated 22 by the Department of Revenue, or as otherwise provided by law. A subpoena may 23 also be served by registered or certified mail for delivery restricted only to the 24 person subpoenaed. The return delivery receipt must be addressed so that the 25 receipt is returned to the Department of Revenue. 26 (c) If a person who is subpoenaed neglects or refuses to obey the subpoena 27 issued as provided in this section, the department may report the fact to the superior 28 court or the appropriate court of another jurisdiction, and may seek an order 29 from the court compelling obedience to the subpoena. The [AND THE] court, to 30 the maximum extent permitted by law, may compel obedience to the subpoena to 31 the same extent as witnesses may be compelled to obey the subpoenas of the court.
01 * Sec. 8. AS 43.05.230(a) is amended to read: 02 (a) It is unlawful for a current or former officer, employee, or agent of the 03 state to divulge the amount of income or the particulars set out or disclosed in a report 04 or return made under AS 43 [THIS TITLE], except 05 (1) in connection with official investigations or proceedings of the 06 department, whether judicial or administrative, involving taxes due under AS 43 [THIS 07 TITLE]; 08 (2) in connection with official investigations or proceedings of the child 09 support enforcement agency, whether judicial or administrative, involving child support 10 obligations imposed or imposable under AS 25 or AS 47; 11 (3) as provided in AS 38.05.036 pertaining to audit functions; [AND] 12 (4) as provided in AS 44.21; and 13 (5) as otherwise provided in this section. 14 * Sec. 9. AS 43.05.240 is repealed and reenacted to read: 15 Sec. 43.05.240. TAXPAYER REMEDIES. (a) A taxpayer aggrieved by the 16 action of the department in fixing the amount of a tax or penalty may apply to the 17 department within 60 days after the date of mailing of the notice required to be given 18 to the taxpayer by the department, giving notice of the grievance, and requesting an 19 informal conference. The taxpayer shall be given access to the taxpayer's file in the 20 department in the matter for preparation for the informal conference. At the informal 21 conference, the taxpayer may present arguments and evidence relevant to the amount 22 of tax or penalty due the state. If the department determines that a correction is 23 warranted, the department shall make the correction. 24 (b) For a matter within the jurisdiction of the office of tax appeals under 25 AS 44.21.605, the taxpayer aggrieved by an informal conference decision may file with 26 the office of tax appeals a notice of appeal for formal hearing, as provided in 27 AS 44.21, no later than 30 days after service of the decision resulting from an informal 28 conference. 29 * Sec. 10. AS 43.55.040 is amended to read: 30 Sec. 43.55.040. POWERS OF DEPARTMENT OF REVENUE. Except as 31 provided in AS 44.21, the [THE] department may
01 (1) require a person engaged in production and the agent or employee 02 of the person, and the purchaser of oil or gas, or the owner of a royalty interest in oil 03 or gas to furnish additional information that is considered by the department as 04 necessary to compute the amount of the tax; 05 (2) examine the books, records, and files of such a person; 06 (3) conduct hearings and compel the attendance of witnesses and the 07 production of books, records, and papers of any person; and 08 (4) make an investigation or hold an inquiry that is considered 09 necessary to a disclosure of the facts as to 10 (A) the amount of production from any oil or gas location, or 11 of a company or other producer of oil or gas, and 12 (B) the rendition of the oil and gas for taxing purposes. 13 * Sec. 11. EFFECT ON EXISTING REMEDIES AND PROCEDURES. This Act does not 14 affect the remedies and procedures specified in AS 04.11, including AS 04.11.560; AS 05.15, 15 including AS 05.15.610; AS 42.05, including AS 42.05.551; or AS 43.56, including 16 AS 43.56.120 and 43.56.130. This Act does not affect the remedies and procedures adopted 17 by regulation by the Department of Revenue governing appeal of a decision of the Department 18 of Revenue regarding a game of chance or skill made under AS 05.15, a permanent fund 19 dividend under AS 43.23, a coin-operated device or punchboard under AS 43.35, or a child 20 support obligation under AS 25.27. 21 * Sec. 12. TRANSITIONAL PROVISIONS. (a) The remedies and procedures provided 22 by this Act apply to all revenue tax appeals in which a request for formal hearing is filed with 23 the Department of Revenue on or after the effective date of this Act. The remedies and 24 procedures existing before the effective date of this Act apply to all revenue tax appeals in 25 which a request for formal hearing was filed with the Department of Revenue before the 26 effective date of this Act, unless all of the parties to an appeal, by written stipulation approved 27 by the chief administrative law judge, agree to the remedies and procedures established by this 28 Act. 29 (b) Until regulations authorized under this Act take effect, 15 AAC 05.001 - 30 15 AAC 05.320 govern appeals within the jurisdiction of the office of tax appeals filed after 31 the effective date of this Act, except to the extent the regulations are inconsistent with this
01 Act. 02 (c) Notwithstanding AS 44.21.605, enacted by sec. 2 of this Act, until the office of 03 tax appeals has a full caseload, and with the approval of the chief administrative law judge, 04 the chief administrative law judge or any other administrative law judge of the office of tax 05 appeals may be appointed by the governor, by the commissioner of administration, or by the 06 commissioner of another department to serve as a special hearing officer or special 07 administrative law judge on another matter outside the scope of this Act and arising from 08 another department of the executive branch. Appointment under this subsection may not 09 interfere with the primary mission of the office of tax appeals under this Act of the 10 expeditious resolution of administrative tax appeals under its jurisdiction. 11 (d) Until 15 AAC 05.001 - 15 AAC 05.320 and other Department of Revenue 12 regulations in effect on the effective date of this Act are revised as necessary, those 13 regulations continue to govern an administrative appeal of a Department of Revenue decision 14 not within the jurisdiction of the office of tax appeals, including a decision regarding 15 (1) a game of chance or skill under AS 05.15; 16 (2) a permanent fund dividend under AS 43.23; 17 (3) a coin-operated device or punchboard under AS 43.35; and 18 (4) a child support obligation under AS 25.27. 19 (e) In this section, 20 (1) "chief administrative law judge" means the chief administrative law judge 21 of the office of tax appeals appointed under AS 44.21.610, enacted by sec. 2 of this Act; 22 (2) "office of tax appeals" means the office established in AS 44.21.600, 23 enacted by sec. 2 of this Act. 24 * Sec. 13. This Act takes effect July 1, 1996.