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HB 400: "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 Commerce and Rural 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; relating to the Department of Commerce and Rural Development; 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. 400 01 "An Act combining parts of the Department of Commerce and Economic 02 Development and parts of the Department of Community and Regional Affairs by 03 transferring some of their duties to a new Department of Commerce and Rural 04 Development; transferring some of the duties of the Department of Commerce and 05 Economic Development and the Department of Community and Regional Affairs 06 to other existing agencies; eliminating the Department of Commerce and Economic 07 Development and the Department of Community and Regional Affairs; relating to 08 the Department of Commerce and Rural Development; adjusting the membership 09 of certain multi-member bodies to reflect the transfer of duties among departments 10 and the elimination of departments; and providing for an effective date." 11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 12 * Section 1. AS 08.40.190(b) is amended to read: 13  (b) AS 08.40.005 - 08.40.200 do not apply to a person engaged in 14  (1) the manufacture, maintenance, or repair of electrical apparatus or

01 equipment; 02  (2) electrical work, the cost of which does not exceed $5,000, involving 03 residences or small commercial establishments in communities that 04  (A) have a population of under 500 according to the latest 05 available federal or state census or other census approved by the Department 06 of Commerce and Rural Development [COMMUNITY AND REGIONAL 07 AFFAIRS]; or 08  (B) are over 50 miles by air or water transportation from the 09 business place of an electrical administrator licensed under AS 08.40.010 - 10 08.40.200; 11  (3) electrical installation on residential property that is owned by the 12 installer or a member of the installer's immediate family and not intended for sale at 13 the time of making the installation; 14  (4) the operation, maintenance, or repair of a television or radio 15 broadcasting system and the installation of a radio broadcasting system under 500 16 watts input power except for A.C. power supply and wiring; 17  (5) the installation, maintenance, and repair of elevators so long as the 18 work is performed by an agent or employee of the elevator industry and is confined 19 to the elevator control system, which system does not include the power supply, 20 wiring, and motor connection; 21  (6) the operation, maintenance, and repair of telephone, telegraph, and 22 intercommunication facilities; 23  (7) the installation, maintenance, and repair of fire alarm, intrusion 24 alarm, or other low voltage signaling systems of 48 volts to ground or less; 25  (8) the maintenance or repair of diesel electric engines installed on 26 heavy construction equipment, either in a shop or on a job site; 27  (9) the installation in a commercial water well of the submersible pump 28 motor and the wiring to the well pump system controls if the controls are outside a 29 building or a structure; 30  (10) the installation in a noncommercial water well of the submersible 31 pump motor and the wiring to the well pump system controls;

01  (11) electrical maintenance or repair work if the work is performed by 02 the person as an employee of an owner or tenant of commercial property as part of the 03 employee's work duties with respect to the property but is not offered or performed 04 as a service to the public. 05 * Sec. 2. AS 08.40.390(b) is amended to read: 06  (b) AS 08.40.210 - 08.40.490 do not apply to a person engaged in 07  (1) the manufacture or repair of mechanical apparatus or equipment; 08  (2) mechanical work, the cost of which does not exceed $50,000, 09 involving residences or small commercial establishments in communities that 10  (A) have a population of under 5,000 according to the latest 11 available federal or state census or other census approved by the Department 12 of Commerce and Rural Development [COMMUNITY AND REGIONAL 13 AFFAIRS]; or 14  (B) are over 50 miles by air or water transportation from the 15 business place of a mechanical administrator licensed under AS 08.40.210 - 16 08.40.490; 17  (3) mechanical installation on a single-family residence or a two-family 18 residence that is not intended for sale at the time of making the installation; 19  (4) installation of water lines or sanitary, storm, or drain sewer lines 20 more than five feet from a building; 21  (5) mechanical maintenance or repair work if the work is performed by 22 the person as an employee of an owner or tenant of commercial property as part of the 23 employee's work duties with respect to the property but is not offered or performed 24 as a service to the public; 25  (6) design, installation, maintenance, or repair of fire extinguishing 26 systems. 27 * Sec. 3. AS 09.25.110(e) is amended to read: 28  (e) Notwithstanding other provisions of this section to the contrary, the Bureau 29 of Vital Statistics and [,] the library archives in the Department of Education [, AND 30 THE DIVISION OF BANKING, SECURITIES, AND CORPORATIONS IN THE 31 DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT] may

01 continue to charge the same fees that they were [ARE] charging on September 25, 02 1990 , for performing record searches, and may increase the fees as necessary to 03 recover agency expenses on the same basis that was [IS] used by the agency 04 immediately before September 25, 1990. Notwithstanding other provisions of this 05 section to the contrary, the division of banking, securities, and corporations in the 06 Department of Commerce and Rural Development may continue to charge the 07 same fees that the former Department of Commerce and Economic Development 08 was charging on the effective date of this bill section for performing record 09 searches and may increase the fees as necessary to recover agency expenses on the 10 same basis that was used by the former Department of Commerce and Economic 11 Development immediately before the effective date of this bill section. 12 * Sec. 4. AS 09.65.170(c)(2) is amended to read: 13  (2) "regional development organization" has the meaning given in 14 AS 44.33.895 [AS 44.47.900]. 15 * Sec. 5. AS 14.08.031(a) is amended to read: 16  (a) The Department of Commerce and Rural Development [COMMUNITY 17 AND REGIONAL AFFAIRS] in consultation with the Department of Education and 18 local communities shall divide the unorganized borough into educational service areas 19 using the boundaries or sub-boundaries of the regional corporations established under 20 the Alaska Native Claims Settlement Act, unless by referendum a community votes to 21 merge with another community contiguous to it but within the boundaries or sub- 22 boundaries of another regional corporation. 23 * Sec. 6. AS 14.08.051(a) is amended to read: 24  (a) The commissioner in consultation with the Department of Commerce and 25 Rural Development [COMMUNITY AND REGIONAL AFFAIRS] and the local 26 communities may divide a regional educational attendance area into sections only for 27 the purpose of nominating and electing regional school board members. If the voters 28 in a regional educational attendance area favor election of regional school board 29 members by sections under (b) of this section, the commissioner in consultation with 30 the Department of Commerce and Rural Development [COMMUNITY AND 31 REGIONAL AFFAIRS] and the local communities shall divide the regional

01 educational attendance area into sections for the purpose of nominating and electing 02 regional school board members. If a regional educational attendance area is divided 03 into sections , each school board member shall represent, as nearly as practicable, an 04 equal number of persons. The basis for the division of a regional educational 05 attendance area into sections shall be the total population of the area as reported in the 06 most recent decennial federal census. If the census is five years old or older, then 07 other reliable population data, including but not limited to population estimates based 08 on public school enrollments, public utility connections, registered voters, or certified 09 employment payrolls, shall be used as the basis for the division of the area into 10 sections. Each section within a regional educational attendance area shall consist of 11 compact, contiguous territory and, as far as practicable, each section shall contain an 12 integrated socioeconomic, linguistically and culturally homogeneous area. In the 13 division of the regional school and attendance area into sections, consideration shall 14 be given to the transportation and communication network to facilitate the 15 administration of education and communication between communities that comprise 16 the area. Whenever possible, municipalities, other governmental or regional corporate 17 entities, drainage basins, and other identifiable geographic features shall be used in 18 describing the boundaries of the sections. 19 * Sec. 7. AS 14.17.025(a) is amended to read: 20  (a) Local contributions to a city or borough school district must include at least 21 the lesser of 22  (1) the equivalent of a four mill tax levy on the full and true value of 23 the taxable real and personal property in the district as of January 1 of the second 24 preceding fiscal year, as determined by the Department of Commerce and Rural 25 Development [COMMUNITY AND REGIONAL AFFAIRS] under AS 14.17.140 and 26 AS 29.45.110; or 27  (2) 35 percent of the district's basic need for the preceding fiscal year, 28 as determined under AS 14.17.021(c). 29 * Sec. 8. AS 14.17.025(b) is amended to read: 30  (b) In addition to the local contributions required under (a) of this section, 31 local contributions to a city or borough school district in a fiscal year may include no

01 more than the greater of 02  (1) the equivalent of a two mill tax levy on the full and true value of 03 the taxable real and personal property in the district as of January 1 of the second 04 preceding fiscal year, as determined by the Department of Commerce and Rural 05 Development [COMMUNITY AND REGIONAL AFFAIRS] under AS 14.17.140 and 06 AS 29.45.110; or 07  (2) 23 percent of the district's basic need for the fiscal year under 08 AS 14.17.021(c), as adjusted under AS 14.17.225(b). 09 * Sec. 9. AS 14.17.025(f) is amended to read: 10  (f) For the first three fiscal years in which a newly formed city or borough 11 school district operates schools, local contributions may be less than the amount that 12 would otherwise be required under (a) of this section, except that 13  (1) local contributions in the second fiscal year of operations must be 14 at least the greater of 15  (A) the local contributions, excluding federal impact aid, for the 16 previous fiscal year; or 17  (B) the sum of 10 percent of the district's eligible federal 18 impact aid for that year and the equivalent of a two mill tax levy on the full 19 and true value of the taxable real and personal property in the newly formed 20 city or borough school district as of January 1 of the second preceding fiscal 21 year, as determined by the Department of Commerce and Rural Development 22 [COMMUNITY AND REGIONAL AFFAIRS] under AS 14.17.140 and 23 AS 29.45.110; and 24  (2) in the third year of operation, local contributions must be at least 25 the greater of 26  (A) the local contributions, excluding federal impact aid, for the 27 previous fiscal year; or 28  (B) the sum of 10 percent of the district's eligible federal 29 impact aid for that year and the equivalent of a three mill tax levy on the full 30 and true value of the taxable real and personal property in the district as of 31 January 1 of the second preceding fiscal year, as determined by the Department

01 of Commerce and Rural Development [COMMUNITY AND REGIONAL 02 AFFAIRS] under AS 14.17.140 and AS 29.45.110. 03 * Sec. 10. AS 14.17.140(a) is amended to read: 04  (a) To determine the amount of local effort under AS 14.17.025 and to aid the 05 department and the legislature in planning, the Department of Commerce and Rural 06 Development [COMMUNITY AND REGIONAL AFFAIRS], in consultation with the 07 assessor for each district, shall determine the full value of the taxable real and personal 08 property in each city or borough district. If there is no local assessor or current local 09 assessment for a district, then the Department of Commerce and Rural Development 10 [COMMUNITY AND REGIONAL AFFAIRS] shall make the determination of full 11 value from information available. In making the determination, the Department of 12 Commerce and Rural Development [COMMUNITY AND REGIONAL AFFAIRS] 13 shall be guided by AS 29.45.110. The determination of full value shall be made by 14 October 1 and sent by certified mail, return receipt requested, on or before that date 15 to the president of the school board in each district. Duplicate copies shall be sent to 16 the commissioner. The governing body of a borough or city that is a school district 17 may obtain judicial review of the determination. The superior court may modify the 18 determination of the Department of Commerce and Rural Development 19 [COMMUNITY AND REGIONAL AFFAIRS] only upon a finding of abuse of 20 discretion or upon a finding that there is no substantial evidence to support the 21 determination. 22 * Sec. 11. AS 15.07.055(a) is amended to read: 23  (a) The following agencies are designated voter registration agencies: 24  (1) the administrative component of the Department of Administration 25 that administers motor vehicle and driver's license laws; 26  (2) divisions of the Department of Health and Social Services that 27 provide public assistance through the food stamp program, Medicaid program, Special 28 Supplemental Food Program for Women, Infants, and Children (WIC), and Alaska 29 temporary assistance program; 30  (3) the division of the Department of Commerce and Rural 31 Development [COMMUNITY AND REGIONAL AFFAIRS] that is responsible for

01 municipal and regional assistance programs; and 02  (4) all recruitment offices of the armed forces of the United States 03 located in Alaska. 04 * Sec. 12. AS 15.13.010(a) is amended to read: 05  (a) This chapter applies 06  (1) in every election for governor, lieutenant governor, a member of the 07 state legislature, a delegate to a constitutional convention, or judge seeking electoral 08 confirmation; 09  (2) to every candidate for election to a municipal office in a 10 municipality with a population of more than 1,000 inhabitants according to the latest 11 United States census figures or estimates of population certified as correct for 12 administrative purposes by the Department of Commerce and Rural Development 13 [COMMUNITY AND REGIONAL AFFAIRS] unless the municipality has exempted 14 itself from the provisions of this chapter; a municipality may exempt its elected 15 municipal officers from the requirements of this chapter if a majority of the voters 16 voting on the question at a regular election, as defined by AS 29.71.800(20), or a 17 special municipality-wide election called for that purpose, votes to exempt its elected 18 municipal officers from the requirements of this chapter; the question of exemption 19 from the requirements of this chapter may be submitted by the governing body by 20 ordinance or by initiative election. 21 * Sec. 13. AS 18.26.030(a) is amended to read: 22  (a) The authority shall be managed and controlled by a seven-person board of 23 directors, who serve at the pleasure of the governor, consisting of 24  (1) the commissioner of revenue, who shall also chair the board; 25  (2) the commissioner of health and social services; 26  (3) the commissioner of commerce and rural development 27 [COMMUNITY AND REGIONAL AFFAIRS]; 28  (4) four public members, appointed by the governor. 29 * Sec. 14. AS 18.56.030(a) is amended to read: 30  (a) The corporation shall be governed by a board of directors consisting of 31  (1) the commissioner of revenue;

01  (2) the commissioner of commerce and rural development 02 [COMMUNITY AND REGIONAL AFFAIRS]; 03  (3) the commissioner of health and social services; and 04  (4) four public members appointed by the governor, as follows: 05  (A) one member with expertise or experience in finances or real 06 estate; 07  (B) one member who is a rural resident of the state or who has 08 expertise or experience with a regional housing authority; 09  (C) one member who has expertise or experience in residential 10 energy efficient home-building or weatherization; and 11  (D) one person who has expertise or experience in the provision 12 of senior or low-income housing. 13 * Sec. 15. AS 18.56.097 is amended to read: 14  Sec. 18.56.097. Collateral for loans. Under procedures established by 15 regulations of the corporation adopted in accordance with AS 18.56.088 a person may 16 pledge as security for the repayment of a loan made, purchased, or insured by the 17 corporation under this chapter a preference right the person holds to receive title to 18 land the person occupies as a primary place of residence, primary place of business, 19 subsistence campsite, or as headquarters for reindeer husbandry. The preference right 20 must be conveyed to the person by the Native corporation to which the land was 21 granted under section 14 of the Alaska Native Claims Settlement Act (85 Stat. 688, 43 22 U.S.C. Sec. 1601 - 1626, as amended by P.L. 94-204) before it may be pledged as 23 security under this section. The Department of Commerce and Rural Development 24 [COMMUNITY AND REGIONAL AFFAIRS] shall prescribe procedures and standard 25 forms for establishing and appraising the value of a preference right held by a person 26 to secure the repayment of a loan made, purchased, or insured by the corporation under 27 this chapter. 28 * Sec. 16. AS 18.70.081 is amended to read: 29  Sec. 18.70.081. Approval of fire protection systems. Before October 30 of 30 each year the Department of Public Safety shall prepare and make available a list of 31 approved fire protection systems to [THE DEPARTMENT OF COMMUNITY AND

01 REGIONAL AFFAIRS,] the Department of Commerce and Rural [ECONOMIC] 02 Development [,] and the public. 03 * Sec. 17. AS 19.30.131(a) is amended to read: 04  (a) During each fiscal year the commissioner shall allocate sums appropriated 05 or otherwise designated for expenditure upon local service roads for that fiscal year 06 among the five allocation districts in the following manner: one-half in the ratio that 07 the area of each allocation district bears to the total area of the state and one-half in 08 the ratio that the population of each allocation district bears to the total population of 09 the state as shown by the latest available federal or state census or other census 10 approved by the Department of Commerce and Rural Development [COMMUNITY 11 AND REGIONAL AFFAIRS]. 12 * Sec. 18. AS 19.30.131(b) is amended to read: 13  (b) The commissioner shall also further allocate the sums in each allocation 14 district to the boroughs and unified municipalities within each allocation district in the 15 following manner: one-half in the ratio that the area of each organized borough or 16 unified municipality (excluding salt water areas) within that district bears to the total 17 area of the allocation district and one-half in the ratio that the population of each 18 organized borough area or each unified municipality within that district bears to the 19 total population of the allocation district as shown by the latest available federal or 20 state census or other census approved by the Department of Commerce and Rural 21 Development [COMMUNITY AND REGIONAL AFFAIRS]. 22 * Sec. 19. AS 19.30.131(c) is amended to read: 23  (c) The commissioner shall also further allocate portions of the sum allocated 24 to any organized borough and to any home rule city within the organized borough in 25 the following manner: 26  (1) one-half in the ratio that the area of each home rule city bears to 27 the total area of the organized borough excluding salt water areas; and 28  (2) one-half in the ratio that the population of each home rule city bears 29 to the total population of the organized borough as shown by the latest available 30 federal or state census or other census approved by the Department of Commerce and 31 Rural Development [COMMUNITY AND REGIONAL AFFAIRS].

01 * Sec. 20. AS 23.05 is amended by adding a new section to read: 02  Sec. 23.05.065. Fees for publications, research data, and other services. 03 The commissioner may establish by regulation and the department may charge 04 reasonable fees for department publications, research data, and other centralized 05 administrative services to cover the cost of reproduction, printing, mailing, distribution, 06 and other centralized administrative services. 07 * Sec. 21. AS 23.05 is amended by adding new sections to read: 08 Article 6. Business Incentive Training Program. 09  Sec. 23.05.400. Business incentive training program established. (a) There 10 is established in the department the business incentive training program. The incentive 11 program shall be administered as a supplement to the Job Training Partnership Act 12 (P.L. No. 97-300). 13  (b) The purpose of the incentive program is to encourage private industry to 14 provide new job opportunities by offering assistance in training the new work force 15 and in retraining existing employees to implement new technologies. 16  Sec. 23.05.410. Administration. (a) The Alaska Human Resources 17 Investment Council established in AS 44.19.620 shall oversee the incentive program. 18 The service delivery areas established under 29 U.S.C. 1511 and subject to 19 redesignation under 29 U.S.C. 1515 shall be used in the administration of the incentive 20 program. The private industry councils appointed under 29 U.S.C. 1512 and subject 21 to reconstitution under 29 U.S.C. 1515 shall serve as the private industry councils for 22 the incentive program. 23  (b) The council shall divide appropriations for the incentive program equally 24 among the private industry councils. If a private industry council lacks sufficient 25 money to fund a proposal, the private industry council may apply to the council for 26 additional funding. The council may approve reallocation of money from one service 27 delivery area to another to fund a particular proposal if it finds that the reallocation 28 will best serve the purposes of the program. 29  (c) The council shall adopt regulations under AS 44.62 (Administrative 30 Procedure Act) to implement AS 23.05.400 - 23.05.510. 31  Sec. 23.05.420. Business incentive training plan. (a) A private industry

01 council shall adopt a business incentive training plan for the service delivery area. The 02 plan must extend for two years to coincide with the term for the Job Training 03 Partnership Act (P.L. 97-300) and must contain 04  (1) identification of the entity or entities that will administer the 05 incentive program and be the grant recipient for grants from the state; 06  (2) a description of the services to be provided, including the estimated 07 duration of service and the estimated training cost per participant; 08  (3) procedures for identifying and selecting participants; 09  (4) performance goals established in accordance with standards under 10 AS 23.05.480; 11  (5) procedures for awarding grants to businesses; and 12  (6) the budget for two program years and any proposed expenditures 13 for the succeeding two program years in as much detail as required by the grant 14 administrator designated under AS 23.05.440. 15  (b) If changes in labor market conditions, funding, or other factors require 16 substantial deviation from an approved business incentive training plan, the private 17 industry council and the appropriate elected municipal official or officials shall submit 18 a modification of the plan and the budget for review under AS 23.05.430. 19  Sec. 23.05.430. Review and approval of business incentive training plan. 20 The business incentive training plan shall be published and made available for review 21 and comment as an attachment to the job training plan as set out in 29 U.S.C. 1515. 22 The business incentive training plan is subject to review and approval by the governor. 23  Sec. 23.05.440. Business incentive training grants. (a) Each private industry 24 council shall designate an administrative entity to be the grant recipient and 25 administrator for the region. An employer may apply to the grant administrator for a 26 business incentive grant if the employer is a private for-profit or nonprofit corporation, 27 partnership, or sole proprietor business. The grant administrator shall review 28 applications and award grants. 29  (b) Each grant administrator is responsible for the allocation of funds and the 30 eligibility of those enrolled in its programs. The grant administrator is responsible for 31 taking action against its subcontractors, subgrantees, and other recipients to eliminate

01 abuses in the programs they are carrying out, and to prevent misuse of funds. If the 02 arrangement is included in an approved job training plan, a grant administrator may 03 delegate the responsibility for determining eligibility under reasonable safeguards, 04 including provisions for reimbursement of costs incurred because of erroneous 05 determinations made with insufficient care. 06  (c) A business incentive training grant shall be used to recruit and train eligible 07 employees for newly created permanent or permanent seasonal positions or to enable 08 existing employees to acquire the skills necessary to qualify the employee to 09 implement new technologies. A business incentive training grant may be used for 10 occupations for which there is a demand in the area served or in another area to which 11 the participant is willing to relocate and for emerging technologies in the state. In 12 selecting recruiting and training programs, the private industry councils and the grant 13 administrators may consider whether the occupation in which recruiting or training is 14 sought is in a sector of the economy that has a high potential for sustained demand or 15 growth. 16  (d) Only individuals eligible under the business incentive training plan and 17 residing in the service delivery area may be participants in employment and training 18 activities funded under the business incentive training program. To be eligible for 19 training or education services under AS 23.05.400 - 23.05.510, immediately before 20 beginning training or education under the program a person shall 21  (1) have been unemployed and 22  (A) receiving unemployment insurance benefits; or 23  (B) have exhausted the right to unemployment insurance 24 benefits within the past three years; 25  (2) be liable to be displaced from work within the next six months 26 because of 27  (A) reductions in overall employment within the business; 28  (B) elimination of the person's current job; or 29  (C) a change in the conditions of the employee's job requiring 30 that, to remain employed, the employee must have substantially different skills 31 that the employee does not now possess; or

01  (3) have worked in a position covered by AS 23.20 at any time during 02 the last three years and be ineligible for unemployment insurance benefits because the 03 person 04  (A) was working in a seasonal, temporary, part-time, or other 05 marginal employment; 06  (B) has insufficient qualifying wages because of limited job 07 opportunities; or 08  (C) is employed, but, because the person is underemployed, the 09 person needs employment assistance and training to obtain full employment. 10  (e) Payments to employers for on-the-job training of participants who 11 experience multiple barriers to employment or are eligible under the Job Training 12 Partnership Act (P.L. 97-300) may not average more than 80 percent of the wages paid 13 by the employer to the participant. Payments to employers for on-the-job training of 14 other participants may not average more than 50 percent of the wages paid by the 15 employer to participants. The payments shall be considered to be in compensation for 16 the extraordinary costs associated with training employees for new positions and the 17 lower productivity of the participants. 18  (f) A grant made under the business incentive training program may not be 19 used to duplicate facilities or services available in the area from federal, state, or local 20 sources unless the business incentive training plan establishes that services or facilities 21 under the program would be more effective or more likely to achieve performance 22 goals. 23  (g) A fee may not be charged for placing an individual in or referring an 24 individual to a training program under AS 23.05.400 - 23.05.510. 25  (h) A business incentive training grant may not be awarded to a program that 26 involves political activities. 27  (i) An employer at whose request a participant is offered training shall fulfill 28 the obligation to offer a successful participant in the business incentive training 29 program a position or promotion, as applicable. A participant is considered successful 30 if the participant satisfactorily completes the training program in which the participant 31 was enrolled.

01  Sec. 23.05.450. Compensation for participants. (a) A trainee may not 02 receive a payment for training activities in which the trainee fails to participate. 03  (b) An individual in on-the-job training shall be compensated by the employer 04 at the same rates, including periodic increases, as similarly situated employees or 05 trainees and in accordance with applicable law. However, an individual may not be 06 paid less than the state minimum wage under AS 23.10.065 whether or not the 07 individual is exempt under AS 23.10.055 or 23.10.070. 08  (c) An individual employed in activities authorized under the business 09 incentive training program other than on-the-job training shall be paid wages that are 10 not less than the highest of 11  (1) the state minimum wage under AS 23.10.065; 12  (2) the prevailing rate of pay for individuals employed in similar 13 occupations by the same employer; or 14  (3) the prevailing rate of wages under AS 36.05 or 40 U.S.C. 276a - 15 276a-5, if applicable. 16  (d) Allowances, earnings, and payments to individuals participating in 17 programs under the business incentive training program may not be considered as 18 income in determining eligibility for and the amount of income transfer and in-kind 19 aid furnished under a state program based on need, other than programs under the 20 Social Security Act. 21  (e) Conditions of employment and training must be appropriate and reasonable 22 in light of factors including the type of work, geographical region, and proficiency of 23 the participant. 24  (f) An individual employed in a subsidized job under the business incentive 25 training program shall be provided benefits and working conditions at the same level 26 and to the same extent as other employees working a similar length of time and doing 27 the same type of work. 28  (g) Money from a grant under the business incentive training program may not 29 be used for contributions on behalf of a participant to retirement systems or plans. 30  Sec. 23.05.460. Reporting and recordkeeping. (a) A grant administrator 31 shall maintain records of each participant's enrollment in a business incentive training

01 program in sufficient detail to demonstrate compliance with AS 23.05.400 - 23.05.510. 02  (b) The council shall adopt regulations concerning retention of records. 03  (c) The council shall, no later than February 1 of each year, prepare a report 04 concerning the incentive program and notify the legislature that the report is available. 05  Sec. 23.05.470. Allowable costs. (a) To be allowable, a cost must be 06 necessary and reasonable for proper and efficient administration of the program. The 07 following costs are not allowable: 08  (1) costs resulting from violations of or failure to comply with federal, 09 state, or local laws and regulations; 10  (2) entertainment costs; and 11  (3) insurance policies offering protection against debts established by 12 the federal government. 13  (b) Personal liability insurance for members of the private industry council is 14 an allowable cost. 15  Sec. 23.05.480. Performance standards. (a) The basic measure of 16 performance for training programs under AS 23.05.400 - 23.05.510 is the increase in 17 jobs in the area and in employment and earnings for participants resulting from 18 participation in the program. In order to determine whether these standards are 19 achieved, the governor shall adopt standards based on appropriate factors. 20  (b) The governor shall provide technical assistance to programs that do not 21 meet performance criteria. If a program fails to meet performance standards for two 22 consecutive years, the governor shall withdraw unencumbered funds from the program. 23  (c) An interested party who is harmed by a change made under this section is 24 entitled to a hearing under AS 44.62 (Administrative Procedure Act). 25  Sec. 23.05.490. Limitation on certain costs. No more than 15 percent of the 26 money available to a service delivery area for a fiscal year may be expended for the 27 cost of administration. For purposes of this section, costs of program support, 28 including counseling, that are directly related to the provision of education or training 29 to participants may not be counted as part of the cost of administration. 30  Sec. 23.05.500. Selection of service providers. (a) The primary 31 consideration in selecting agencies or organizations to deliver services within a service

01 delivery area is the effectiveness of the agency or organization in delivering 02 comparable or related services based on demonstrated performance, in terms of the 03 likelihood of meeting performance goals, cost, quality of training, and characteristics 04 of participants. In complying with this subsection, proper consideration shall be given 05 to community based organizations as service providers. 06  (b) Appropriate education agencies in the service delivery area shall be given 07 the opportunity to provide educational services, unless the grant administrator 08 determines that alternative agencies or organizations would be more effective or would 09 have greater potential to enhance the participants' continued occupational and career 10 growth. 11  (c) The grant administrator may not fund an occupational skills training 12 program unless the level of skills provided in the program is in accordance with 13 guidelines established by the private industry council. 14  Sec. 23.05.510. Definitions. In 23.05.400 - 23.05.510, 15  (1) "council" means the Alaska Human Resources Investment Council 16 established in AS 44.19.620; 17  (2) "incentive program" means the business incentive training program 18 established under AS 23.05.400; 19  (3) "participant" means an individual receiving education or training, 20 including on-the-job training, under an incentive program grant. 21 * Sec. 22. AS 23.15.645(b) is amended to read: 22  (b) When a grant is awarded to the council, the department shall annually 23 provide to the council a priority list of targeted projects or services, based on 24 unemployment statistics, unemployment insurance claims, occupational and industrial 25 projections, availability of other training and employment programs, and other relevant 26 data. The department shall also provide annually to the council a priority list of 27 criteria for eligibility to maximize services to those people most in need of training 28 under AS 23.15.620 - 23.15.660. In developing the priority list for targeted projects 29 and services, the department shall solicit comments from the [DEPARTMENT OF 30 COMMUNITY AND REGIONAL AFFAIRS,] Department of Education, Department 31 of Commerce and Rural [ECONOMIC] Development, University of Alaska, organized

01 labor, the council, and the administrative entities of the substate service delivery areas 02 established for the council. The department shall give preference to projects and 03 services that train individuals in industries identified in the resident hire report required 04 under AS 36.10.130 as employing a disproportionate percentage of nonresident 05 individuals. 06 * Sec. 23. AS 24.08.035(e) is amended to read: 07  (e) If a bill or resolution, except an appropriation bill, significantly increases 08 costs to a municipality, there shall be attached to the measure a municipal fiscal note 09 containing an estimate for the current fiscal year and five succeeding fiscal years of 10 the cost to municipalities that would result from enactment of the measure. The last 11 committee to which the bill is referred on the day it is introduced in the house of 12 origin shall request the municipal fiscal note. It shall be prepared by the Department 13 of Commerce and Rural Development [COMMUNITY AND REGIONAL 14 AFFAIRS]. It shall be delivered in accordance with (d) of this section within five 15 days of the request, or within two days if the request is made after the 90th day of a 16 regular session or during a special session. The municipal fiscal note must contain 17 information that substantially complies with (c)(1), (2), and (6) - (9) of this section to 18 the extent the information is available to the department. 19 * Sec. 24. AS 26.23.071(b) is amended to read: 20  (b) The commission consists of the commissioners of commerce and rural 21 development [COMMUNITY AND REGIONAL AFFAIRS], environmental 22 conservation, fish and game, health and social services, labor, natural resources, public 23 safety, and transportation and public facilities, or the designees of the commissioners, 24 the adjutant general of the Department of Military and Veterans' Affairs or a designee, 25 and seven members of the public appointed by the governor, two of whom must be 26 members of a local emergency planning committee for an emergency planning district 27 that is predominantly rural in character and two of whom must be members of a local 28 emergency planning committee for an emergency planning district that is 29 predominantly urban in character. Two of the other three members of the public who 30 are appointed to the commission must be members of the governing body of, or the 31 mayor of, a political subdivision that has a local emergency planning committee or a

01 person who, in the opinion of the governor, is otherwise appropriate to represent the 02 political subdivision. The United States Department of Defense - Alaska Command, 03 the Federal Emergency Management Agency, the United States Environmental 04 Protection Agency, and the United States Coast Guard may each appoint a 05 representative to serve on the commission in an ex-officio, nonvoting capacity. To the 06 extent practicable, the commission must include members with expertise in the 07 emergency response field. 08 * Sec. 25. AS 28.01.010(b) is amended to read: 09  (b) A municipality may adopt by reference all or a part of this title and 10 regulations adopted under this title, and may request and shall receive from the 11 Department of Commerce and Rural Development [COMMUNITY AND 12 REGIONAL AFFAIRS] and, as appropriate, either the Department of Administration 13 or the Department of Public Safety, assistance in the drafting of model ordinances for 14 adoption by reference. Notwithstanding (a) of this section, a municipality may enact 15 necessary ordinances to meet specific local requirements. 16 * Sec. 26. AS 29.06.040(c) is amended to read: 17  (c) In addition to the regulations governing annexation by local action adopted 18 under AS 44.33.812 [AS 44.47.567], the Local Boundary Commission shall establish 19 procedures for annexation and detachment of territory by municipalities by local 20 action. The procedures established under this subsection must include a provision that 21  (1) a proposed annexation and detachment must be approved by a 22 majority of votes on the question cast by voters residing in the area proposed to be 23 annexed or detached; 24  (2) municipally owned property adjoining the municipality may be 25 annexed by ordinance without voter approval; and 26  (3) an area adjoining the municipality may be annexed by ordinance 27 without an election if all property owners and voters in the area petition the governing 28 body. 29 * Sec. 27. AS 29.60.120(d) is amended to read: 30  (d) Before money may be distributed under this section, the commissioner of 31 health and social services shall certify to the commissioner of commerce and rural

01 development [COMMUNITY AND REGIONAL AFFAIRS] that any accumulation of 02 assets by nonprofit corporations or other recipients under this section is dedicated 03 irrevocably to a public purpose. 04 * Sec. 28. AS 29.60.370(a) is amended to read: 05  (a) The amount allocated to the per capita account in the safe communities 06 program shall be distributed to each municipality on the basis of population. 07 Population for the purpose of this section shall be as certified by the commissioner of 08 commerce and rural development [COMMUNITY AND REGIONAL AFFAIRS]. 09 In determining the population of a borough, the population of all cities in the borough 10 shall be deducted from the total population of the borough. 11 * Sec. 29. AS 29.60.599(9) is amended to read: 12  (9) "village" means a place within the unorganized borough or within 13 a borough if the power, function, or service for which a grant application is submitted 14 under AS 29.60.500 - 29.60.599 is not exercised or provided by the borough on an 15 areawide or nonareawide basis at the time the grant application is submitted, that 16  (A) has irrevocably waived, in a form approved by the 17 Department of Law, any claim of sovereign immunity that might arise in 18 connection with the use of grant money under this chapter; and 19  (B) has 20  (i) a council organized under 25 U.S.C. 476 (sec. 16 of 21 the Indian Reorganization Act); 22  (ii) a traditional village council recognized by the United 23 States as eligible for federal aid to Indians; or 24  (iii) a council recognized by the commissioner under 25 regulations adopted by the department to determine and give official 26 recognition of village entities under AS 44.33.755(b) [AS 44.47.150(b)]. 27 * Sec. 30. AS 29.60.620(b) is amended to read: 28  (b) For purposes of (a) of this section, population shall be determined by the 29 Department of Commerce and Rural Development [COMMUNITY AND 30 REGIONAL AFFAIRS] based on the latest figures of the United States Bureau of the 31 Census or other reliable population data. If a city within a borough has an approved

01 grant for a service to be provided on an areawide basis, the allocation under (a) of this 02 section shall be based on the population of the borough. 03 * Sec. 31. AS 29.60.650(2) is amended to read: 04  (2) "municipality" means a (A) city whose population is over 20,000; 05 (B) unified municipality whose population is over 100,000; or (C) second class 06 borough whose population is over 65,000; population for purposes of this paragraph 07 shall be determined by the Department of Commerce and Rural Development 08 [COMMUNITY AND REGIONAL AFFAIRS]. 09 * Sec. 32. AS 29.65.050(c) is amended to read: 10  (c) The director shall approve or disapprove each selection for patent within 11 nine months of its selection by a municipality. Before a decision is issued , the 12 Department of Commerce and Rural Development [COMMUNITY AND 13 REGIONAL AFFAIRS] shall review the selection and recommend approval or 14 disapproval of it. The director may disapprove a selection only upon a finding that the 15 public interest in retaining state ownership of the land outweighs the municipality's 16 interest in obtaining the land. A patent shall be issued to the municipality for land 17 selected in satisfaction of a general grant land entitlement vested under AS 29.65.010 - 18 29.65.030 within three months after approval by the director of a plat of survey. 19 * Sec. 33. AS 29.65.050(d) is amended to read: 20  (d) Before disapproving a selection, the director shall notify the municipality 21 in writing of the decision and set out reasons for it. The municipality may submit a 22 written response within 30 days after receipt of the notice. Within 30 days after the 23 period for responding has expired, the director shall affirm, modify, or reverse the 24 decision and supply the municipality with written notice of that action. If the selection 25 is disapproved, the municipality may file notice of an appeal with the director. The 26 appeal shall be heard under procedures adopted by regulation of the Department of 27 Natural Resources. Before reaching a decision on an appeal the Department of Natural 28 Resources shall request the Department of Commerce and Rural Development 29 [COMMUNITY AND REGIONAL AFFAIRS] to review the matter and submit a 30 recommendation. After reviewing the recommendation, a decision on the appeal shall 31 be submitted by the Department of Natural Resources to the municipality in writing

01 within 30 days after the notice of appeal was filed with the director. A municipality 02 may appeal an adverse decision to the superior court under AS 44.62.560 - 44.62.570. 03 * Sec. 34. AS 29.65.060(f) is amended to read: 04  (f) For purposes of determining the per capita entitlement under (a) of this 05 section, the population of a municipality shall be the population determined by the 06 former commissioner of community and regional affairs under former AS 43.18.010 07 for the program year beginning July 1, 1978, for a municipality whose entitlement was 08 determined under former AS 29.18.201 or 29.18.202. 09 * Sec. 35. AS 29.65.120 is amended to read: 10  Sec. 29.65.120. Regulations. The commissioner of natural resources may, 11 after consultation with the Department of Commerce and Rural Development 12 [COMMUNITY AND REGIONAL AFFAIRS], adopt regulations in accordance with 13 AS 44.62 (Administrative Procedure Act) necessary to carry out the purposes of this 14 chapter. 15 * Sec. 36. AS 29.71.800(5) is amended to read: 16  (5) "commissioner" means the commissioner of commerce and rural 17 development [COMMUNITY AND REGIONAL AFFAIRS]; 18 * Sec. 37. AS 29.71.800(8) is amended to read: 19  (8) "department" means the Department of Commerce and Rural 20 Development [COMMUNITY AND REGIONAL AFFAIRS]; 21 * Sec. 38. AS 30.13.010(a) is amended to read: 22  (a) The residents of each area of the state within the boundaries of a regional 23 housing authority established under AS 18.55.996 that [WHICH] is located in whole 24 or in part in the unorganized borough of the state may create a public body corporate 25 and politic under the name and style of the "Resource Development Authority" with 26 all or any significant part of the name of the region of the state inserted. The 27 boundaries of the authority created shall be coterminous with the portion of the 28 applicable regional housing authority that lies in the unorganized borough. Creation 29 of an authority is initiated by a petition filed with the Department of Commerce and 30 Rural Development [COMMUNITY AND REGIONAL AFFAIRS] and a statement 31 submitted to the governor. The petition must include the proposed name of the

01 authority, its boundaries, and a statement of the facilities proposed to be provided by 02 the authority. The petition must be signed by 15 percent of the total number of 03 residents in the portion of the applicable regional housing authority that lies in the 04 unorganized borough who cast votes in the preceding general election. The 05 Department of Commerce and Rural Development [COMMUNITY AND 06 REGIONAL AFFAIRS] shall review petitions for content and signatures. If the 07 department determines that the petition is adequate, it shall transmit the petition to the 08 director of elections. 09 * Sec. 39. AS 36.30.850(b)(11) is amended to read: 10  (11) agreements with providers of services under AS 44.29.300 11 [AS 44.47.250]; AS 47.07; AS 47.08; AS 47.10; 47.17; AS 47.24; and AS 47.27, 12 including contractors under AS 47.27.050; 13 * Sec. 40. AS 36.30.850(b)(30) is amended to read: 14  (30) contracts entered into with a regional development organization; 15 in this paragraph, "regional development organization" has the meaning given in 16 AS 44.33.895 [AS 44.47.900]; 17 * Sec. 41. AS 37.05.317 is amended to read: 18  Sec. 37.05.317. Grants to unincorporated communities. (a) When an 19 amount is appropriated or allocated as a grant under this section to an unincorporated 20 community, it shall be disbursed as follows: 21  (1) Within 45 days after the effective date of the appropriation or 22 allocation, the Department of Commerce and Rural Development [COMMUNITY 23 AND REGIONAL AFFAIRS] shall notify the governing body of the unincorporated 24 community, if any, that a grant is available. 25  (2) The Department of Commerce and Rural Development 26 [COMMUNITY AND REGIONAL AFFAIRS] shall determine if there is a qualified 27 incorporated entity in the community area that will agree to receive the grant and 28 administer it, subject to terms generally applicable to private grantees. If there is more 29 than one such entity, the Department of Commerce and Rural Development 30 [COMMUNITY AND REGIONAL AFFAIRS] shall select the most qualified and the 31 grant shall be awarded to that incorporated entity for the purposes specified in the

01 appropriation act. However, the Department of Commerce and Rural Development 02 [COMMUNITY AND REGIONAL AFFAIRS] shall give preference to a nonprofit 03 corporation organized by a community for receipt of the grant. 04  (3) If there is no incorporated entity qualified to receive the grant, the 05 Department of Commerce and Rural Development [COMMUNITY AND 06 REGIONAL AFFAIRS] shall administer the program as specified in the appropriation 07 act directly or through agents or contractors with whom it may contract in the 08 community area. 09  (b) The Department of Labor shall require the qualified incorporated entity 10 awarded a grant or agents or contractors with whom the Department of Commerce 11 and Rural Development [COMMUNITY AND REGIONAL AFFAIRS] contracts 12 under (a) of this section to comply with the requirements of AS 36.10.150 - 36.10.175 13 for employment generated by the grant or contract if the grant or contract is for a 14 public works project. 15 * Sec. 42. AS 37.05.530(c) is amended to read: 16  (c) The Department of Commerce and Rural Development [COMMUNITY 17 AND REGIONAL AFFAIRS] shall adopt regulations under which municipalities 18 impacted by National Petroleum Reserve - Alaska oil and gas development under 42 19 U.S.C. 6508 may apply for and be eligible to receive grants to alleviate the impact. 20 The department shall give priority in the allocation of grants to municipalities that are 21 experiencing or will experience the most direct or severe impact from oil and gas 22 development under 42 U.S.C. 6508 within the National Petroleum Reserve - Alaska. 23 The department shall fund all meritorious grant applications out of the money 24 appropriated to it each year. Within 10 days after the convening of each regular 25 session of the legislature, the department shall submit to the legislature a list of all 26 municipalities that have received grants, a list of all municipalities determined by the 27 department to be eligible for further grants, a recommendation of the amount of money 28 to be granted for those additional applications, and written justification of each past 29 and potential grant. 30 * Sec. 43. AS 37.06.010(g) is amended to read: 31  (g) For purposes of this section, in calculating the population of a borough the

01 population of each city in the borough is excluded. The determination of population 02 shall be based upon data used by the Department of Commerce and Rural 03 Development [COMMUNITY AND REGIONAL AFFAIRS] under AS 29.60.020. 04 * Sec. 44. AS 37.06.020(i) is amended to read: 05  (i) The limitations of AS 44.33.745 [AS 44.47.140] do not apply to a grant 06 made under this section. 07 * Sec. 45. AS 37.06.020(k) is amended to read: 08  (k) In this section, unless specified otherwise, "department" means the 09 Department of Commerce and Rural Development [COMMUNITY AND 10 REGIONAL AFFAIRS]. 11 * Sec. 46. AS 37.06.030(c) is amended to read: 12  (c) For purposes of (a) of this section, in calculating the population of a 13 borough the population of each city in the borough is excluded. The determination of 14 population shall be based upon data used by the Department of Commerce and Rural 15 Development [COMMUNITY AND REGIONAL AFFAIRS] under AS 29.60.020. 16 * Sec. 47. AS 37.06.080 is amended to read: 17  Sec. 37.06.080. Adoption of regulations. The Department of Administration 18 for grants under AS 37.06.010 and the Department of Commerce and Rural 19 Development [COMMUNITY AND REGIONAL AFFAIRS] for grants under 20 AS 37.06.020 21  (1) may adopt regulations that impose additional requirements or 22 procedures to implement, interpret, make specific, or otherwise carry out the applicable 23 provisions of this chapter for grants administered by the department; 24  (2) shall adopt regulations providing for periodic audits of the use of 25 money for grants administered by the department under this chapter, including audit 26 of the department's determination of the value of, and adequacy of the verification of 27 the actual use of, locally funded or contributed labor on projects funded by a grant 28 under this chapter. 29 * Sec. 48. AS 39.50.200(b)(18) is amended to read: 30  (18) Local Boundary Commission ( AS 44.33.810 [AS 44.47.565]); 31 * Sec. 49. AS 41.15.180(a) is amended to read:

01  (a) When the commissioner of commerce and rural development 02 [COMMUNITY AND REGIONAL AFFAIRS] receives national forest income under 03 16 U.S.C. 500, the commissioner shall immediately pay to each organized borough in 04 which national forest land is located a share of the income from that forest; an 05 organized borough's share of income from a national forest shall be proportional to the 06 area of the national forest located within its boundaries. 07 * Sec. 50. AS 41.15.180(b) is amended to read: 08  (b) There is created as a separate account in the general fund the unorganized 09 borough national forest receipts fund. The fund consists of national forest income 10 received by the Department of Commerce and Rural Development [COMMUNITY 11 AND REGIONAL AFFAIRS] under 16 U.S.C. 500 for the percentage of a national 12 forest located within the unorganized borough. Seventy-five percent of the fund shall 13 be allocated for public schools and 25 percent for public roads. 14 * Sec. 51. AS 41.15.180(f) is amended to read: 15  (f) For the purpose of making distributions from the fund, the commissioner 16 of commerce and rural development [COMMUNITY AND REGIONAL AFFAIRS] 17 shall consult with the commissioner of education, for purposes of determining the 18 number of children in average daily membership in the public schools affected by this 19 section, and the commissioner of transportation and public facilities, to determine the 20 total number of road miles in the unorganized borough affected by this section. 21 * Sec. 52. AS 41.15.180(g) is amended to read: 22  (g) An organized borough, home rule city, first class city, second class city, 23 regional educational attendance area, or a municipality organized under federal law that 24 receives a national forest income payment or distribution under 16 U.S.C. 500 or this 25 section shall annually report and account to the commissioner of commerce and rural 26 development [COMMUNITY AND REGIONAL AFFAIRS] its use of the payment 27 or distribution for the purposes provided in (a) - (e) of this section. The commissioner 28 of commerce and rural development [COMMUNITY AND REGIONAL AFFAIRS] 29 may not distribute national forest income under this section to an entity in the 30 unorganized borough that has previously failed to report and account as required under 31 this subsection.

01 * Sec. 53. AS 42.45.060(a) is amended to read: 02  (a) A loan committee consisting of six [SEVEN] members is established. The 03 committee is composed of [THE COMMISSIONER OF COMMUNITY AND 04 REGIONAL AFFAIRS,] the commissioner of commerce and rural [ECONOMIC] 05 development, the director of management and budget, or the designees of the 06 commissioners or the director, and four public members. 07 * Sec. 54. AS 42.45.060(c) is amended to read: 08  (c) The commissioner of commerce and rural development [COMMUNITY 09 AND REGIONAL AFFAIRS] serves as chair of the committee. The committee may 10 elect other officers as necessary. A majority of the members of the committee 11 constitute a quorum and may exercise the powers of the committee. 12 * Sec. 55. AS 42.45.990(1) is amended to read: 13  (1) "department" means the Department of Commerce and Rural 14 Development [COMMUNITY AND REGIONAL AFFAIRS]; 15 * Sec. 56. AS 43.75.137 is amended to read: 16  Sec. 43.75.137. Additional refund. To the extent that appropriations are 17 available for the purpose, and notwithstanding the requirement of AS 37.07.080(e) that 18 approval of the office of management and budget is required, an amount equal to 50 19 percent of the tax revenue that is collected under this chapter from fisheries businesses 20 and is not subject to division with a municipality under AS 43.75.130 shall be 21 transmitted each fiscal year, without the approval of the office of management and 22 budget, by the department to the department of Commerce and Rural Development 23 [COMMUNITY AND REGIONAL AFFAIRS] for disbursal to eligible municipalities 24 under AS 29.60.450. 25 * Sec. 57. AS 43.77.040(b) is amended to read: 26  (b) A taxpayer who makes a contribution that qualifies for the credit 27 authorized by (a) of this section must apply to obtain the credit. The taxpayer shall 28 apply to the department in the manner provided by the department by regulation, and 29 shall provide to the commissioner all information relating to the contribution that may 30 be required by the department. Upon receipt of a complete application, the 31 department, in consultation with the Department of Commerce and Rural

01 Development [COMMUNITY AND REGIONAL AFFAIRS], shall approve or 02 disapprove the application for the credit within 60 days. 03 * Sec. 58. AS 43.77.060(d) is amended to read: 04  (d) To the extent that appropriations are available for the purpose, and 05 notwithstanding the requirement of AS 37.07.080(e) that approval of the office of 06 management and budget is required, an amount equal to 50 percent of the tax revenue 07 that is collected under this chapter and is not subject to division with a municipality 08 under (a) - (c) of this section shall be transmitted each fiscal year, without the approval 09 of the office of management and budget, by the department to the Department of 10 Commerce and Rural Development [COMMUNITY AND REGIONAL AFFAIRS] 11 for disbursal to eligible municipalities under AS 29.60.450. 12 * Sec. 59. AS 44.19.145(a) is amended to read: 13  (a) The office shall 14  (1) provide technical assistance to the governor and the legislature in 15 identifying long range goals and objectives for the state and its political subdivisions; 16  (2) prepare and maintain a state comprehensive development plan; 17  (3) provide information and assistance to state agencies to aid in 18 governmental coordination and unity in the preparation of agency plans and programs; 19  (4) review planning within state government as may be necessary for 20 receipt of federal, state, or other funds; 21  (5) participate with other countries, provinces, states, or subdivisions 22 of them in international or interstate planning, and assist the state's local governments, 23 governmental conferences, and councils in planning and coordinating their activities; 24  (6) encourage educational and research programs that further state 25 planning and development, and provide administrative and technical services for them; 26  (7) publish [SUCH] statistical information or other documentary 27 material that [AS] will further the provisions and intent of AS 44.19.141 - 44.19.152; 28  (8) assist the governor and the Department of Commerce and Rural 29 Development [COMMUNITY AND REGIONAL AFFAIRS] in coordinating state 30 agency activities that have an effect on the solution of local and regional development 31 problems;

01  (9) serve as a clearinghouse for information, data, and other materials 02 that may be helpful or necessary to federal, state, or local governmental agencies in 03 discharging their respective responsibilities or in obtaining federal or state financial or 04 technical assistance; 05  (10) review all proposals for the location of capital improvements by 06 any state agency and advise and make recommendations concerning location of these 07 capital improvements; 08  (11) render, on behalf of the state, all federal consistency 09 determinations and certifications authorized by 16 U.S.C. 1456 (Sec. 307, Coastal Zone 10 Management Act of 1972), and each conclusive state consistency determination when 11 a project requires a permit, lease, or authorization from two or more state resource 12 agencies. 13 * Sec. 60. AS 44.19.155(a) is amended to read: 14  (a) There is created in the Office of the Governor the Alaska Coastal Policy 15 Council. The council consists of the following: 16  (1) nine public members appointed by the governor from a list 17 comprised of at least three names from each region, nominated by the municipalities 18 of each region; the nominees shall be the mayor or member of the assembly or council 19 of a municipality; one public member shall be appointed from each of the following 20 general regions: 21  (A) northwest Alaska, including, generally, the area of the North 22 Slope Borough and the Northwest Arctic regional educational attendance area; 23  (B) Bering Straits, including, generally, the area of the Bering 24 Straits regional educational attendance area; 25  (C) southwest Alaska, including, generally, the area within the 26 Lower Yukon, Lower Kuskokwim, Southwest, and Lake and [&] Peninsula 27 regional educational attendance areas and the Bristol Bay Borough; 28  (D) Kodiak-Aleutians, including the area of the Kodiak Island 29 Borough and the Aleutian, Adak and Pribilof regional educational attendance 30 areas; 31  (E) Upper Cook Inlet, including the Municipality of Anchorage

01 and the Matanuska-Susitna Borough; 02  (F) Lower Cook Inlet, including, generally, the area within the 03 Kenai Peninsula Borough; 04  (G) Prince William Sound, including, generally, the area east 05 of the Kenai Peninsula Borough to 141 W. longitude; 06  (H) northern Southeast Alaska, including the area southeast of 07 141 W. longitude and north of 57 N. latitude, including the entirety of the City 08 and Borough of Sitka; and 09  (I) southern Southeast Alaska, including that portion of 10 southeastern Alaska not contained within the area described in (H) of this 11 paragraph; 12  (2) each of the following: 13  (A) the director of the office of management and budget; 14  (B) the commissioner of commerce and rural [ECONOMIC] 15 development; 16  (C) [THE COMMISSIONER OF COMMUNITY AND 17 REGIONAL AFFAIRS; 18  (D)] the commissioner of environmental conservation; 19  (D) [(E)] the commissioner of fish and game; 20  (E) [(F)] the commissioner of natural resources; and 21  (F) [(G)] the commissioner of transportation and public 22 facilities. 23 * Sec. 61. AS 44.19.155(d) is amended to read: 24  (d) Each member of the council shall select one person to serve as a 25 permanent alternate at meetings of the council. If a member of the council is unable 26 to attend, the member shall advise the alternate who may attend and act in the place 27 of the member. The alternate for a public member appointed under (a)(1) of this 28 section shall, at the time of the alternate's designation and throughout the period of 29 service as a permanent alternate, be the mayor or member of the assembly or council 30 of a municipality within the region from which the permanent member is appointed. 31 The alternate for the director of the office of management and budget, serving under

01 (a)(2)(A) of this section, shall be the director's designee within that office. The 02 alternate for a designated member serving under (a)(2)(B) - (F) [(a)(2)(B) - (G)] of this 03 section shall be a deputy commissioner of the department or the director of a division 04 in the department. The names of alternates shall be filed with the council. 05 * Sec. 62. AS 44.19.620(a) is amended to read: 06  (a) The Alaska Human Resource Investment Council is established in the 07 Office of the Governor. The council consists of the following voting members, not to 08 exceed 26: 09  (1) the lieutenant governor or the lieutenant governor's designee; 10  (2) the commissioners of commerce and rural [ECONOMIC] 11 development, [COMMUNITY AND REGIONAL AFFAIRS,] education, health and 12 social services, and labor, or each respective commissioner's designee; 13  (3) one representative from the University of Alaska; 14  (4) four additional representatives of education, with one from local 15 public education, one from secondary vocational education, one from a postsecondary 16 vocational education institution, and one from adult basic education; 17  (5) four representatives of business and industry, with at least one 18 representative from the private industry councils appointed under 29 U.S.C. 1512 and 19 subject to reconstitution under 29 U.S.C. 1515; 20  (6) four representatives of organized labor that the governor shall 21 appoint from lists of nominees submitted by recognized state labor organizations; the 22 governor may reject a list submitted under this paragraph and request that another list 23 be submitted; 24  (7) at least one representative from an organization representing 25 employment and training needs of Alaska Natives; 26  (8) at least one representative of a community-based service 27 organization; 28  (9) at least one representative who has personal or professional 29 experience with developmental disabilities; and 30  (10) at least one and up to four additional members of the private 31 sector to ensure a private sector majority and regional and local representation on the

01 council. 02 * Sec. 63. AS 44.21.200(a) is amended to read: 03  (a) The Alaska Commission on Aging is established in the Department of 04 Administration. The members of the commission include 05  (1) the commissioner of administration or the commissioner's designee; 06  (2) the commissioner of commerce and rural development 07 [COMMUNITY AND REGIONAL AFFAIRS] or the commissioner's designee; 08  (3) the commissioner of health and social services or the 09 commissioner's designee; 10  (4) the chair of the Pioneers' Homes Advisory Board under 11 AS 44.21.120; and 12  (5) seven persons selected on the basis of their knowledge and 13 demonstrated interest in the concerns of older Alaskans, appointed by the governor in 14 accordance with (b) of this section. 15 * Sec. 64. AS 44.29 is amended by adding new sections to read: 16 Article 4. Day Care Assistance; Child Care Grants. 17  Sec. 44.29.300. Powers and duties. (a) The department shall 18  (1) implement and administer a program to assist in providing day care 19 for the children of low and moderate income families according to the requirements 20 of AS 44.29.300 - 44.29.339; 21  (2) establish standards of eligibility for day care benefits; 22  (3) contract for the care of children of eligible families; 23  (4) establish procedures to periodically review the needs of families 24 receiving day care benefits; 25  (5) provide notification to the local government body of the request for 26 a contract with a day care facility. 27  (b) The department may 28  (1) adopt regulations necessary for the performance of its duties under 29 AS 44.29.300 - 44.29.339; 30  (2) contract with other entities to perform duties of the department 31 under AS 44.29.300 - 44.29.339 within an area specified by the department; within an

01 area, the department shall give higher priority to contracting with municipalities than 02 with other organizations. 03  Sec. 44.29.305. Administrative costs of program contractors. To defray 04 administrative expenses, a contractor under AS 44.29.300(b) may only retain $1,000 05 or 12 percent, whichever is greater, of the day care assistance program funds it 06 receives from the department under the contract. 07  Sec. 44.29.310. Conditions of receipt of benefits. Benefits may be paid for 08 the care of children of a low or moderate income family only if a parent or guardian, 09 because of the day care, is freed to work or to seek work or to attend school. Benefits 10 may not be paid for the care of children of a family where one parent or guardian is 11 not working, actively seeking work, or attending school and is physically and mentally 12 capable of caring for the children. 13  Sec. 44.29.315. Eligibility of families for benefits. The department shall 14 determine the eligibility of families for day care benefits on the basis of the following 15 factors: 16  (1) income of the family including salary, alimony, child support, 17 retirement benefits, social security, and any other source of income; 18  (2) number of children in the family; 19  (3) whether there is one parent or guardian solely responsible for the 20 care of the family. 21  Sec. 44.29.320. Contributions by parent or guardian. The department shall 22 develop a sliding fee scale based on the factors listed in AS 44.29.315 for purposes of 23 determining the amount to be contributed by the parent or guardian for child care. The 24 contribution of the parent or guardian shall be paid to the day care facility. 25  Sec. 44.29.325. Placement; payment by state. (a) Parents or guardians shall 26 select the day care facility for the care of their children. 27  (b) Benefits shall be paid by the department directly to the municipality or 28 organization contracting with the day care facility. 29  Sec. 44.29.330. Child care grant program. (a) A child care grant program 30 is established in the department to provide state assistance in the operation of child 31 care facilities. The department shall provide grants for the operation of child care

01 facilities, including private nonprofit child care facilities. Participation in the program 02 is optional. 03  (b) To qualify for a grant under (a) or (d) of this section, the child care facility 04 must 05  (1) be currently licensed under AS 47.35 and applicable municipal 06 licensing requirements; 07  (2) participate in the day care assistance program under AS 44.29.300 - 08 44.29.339; and 09  (3) provide care under a payment system as provided in (g) of this 10 section. 11  (c) A grant under (a) of this section may not exceed $50 per month for each 12 child the child care facility cares for, or for each full-time equivalent, as determined 13 by the department. The grant shall be adjusted on a geographic basis by the same 14 percentages as instructional unit allotments are adjusted under AS 14.17.051. 15  (d) In addition to the grants provided in (a) of this section, the department 16 may, subject to appropriations for that purpose, provide by grant or contract for the 17 education and training of child care employees or administrators. To receive a grant 18 or contract under this subsection or to participate in a training program under this 19 subsection, the child care facility must meet all the requirements of (b) of this section. 20  (e) An application for a grant under this section shall be made in the form 21 established by the department. 22  (f) A grant under (a) of this section shall be made monthly or quarterly and 23 shall be based on the monthly average daily full-time equivalent enrollment in the 24 child care facility. If the method of payment for the grant is other than monthly, it 25 shall be at the request of the child care facility with the approval of the department. 26 Based on criteria established by the department, the department may make quarterly 27 advance payments. 28  (g) Each child care facility receiving a grant under (a) or (d) of this section 29 shall assure that at least 15 percent or one of its child care spaces receiving subsidy 30 under this section, whichever is greater, will be made available, if requested, to 31 children eligible for day care assistance under AS 44.29.300 - 44.29.339, whose

01 parents or guardians wish to pay for care based on attendance only. 02  (h) The commissioner shall, in consultation with interested child care providers 03 and parents, adopt regulations to carry out the purposes of this section. 04  Sec. 44.29.339. Definitions. In AS 44.29.300 - 44.29.339, 05  (1) "child" means a person below 13 years of age, or a minor who has 06 a developmental disability; 07  (2) "child care facility" means an establishment licensed under 08 AS 47.35 including but not limited to day care centers, family day care homes, and 09 schools for preschool age children, which provides care for children not related by 10 blood, marriage, or legal adoption to the owner, operator, or manager of the facility; 11  (3) "day care" means the care, supervision, and guidance of a child or 12 children unaccompanied by a parent or legal guardian on a regular basis for periods 13 of less than 24 hours a day; 14  (4) "day care facility" means a center or home licensed in accordance 15 with the provisions of AS 47.35 or recognized by the federal government for the care 16 of children; 17  (5) "department" means the department of Community and Economic 18 Development; 19  (6) "developmental disability" means a disability under which a person 20 is incapable of self-care, as verified by a physician or licensed or certified psychologist 21 who has examined the person. 22 Article 5. Child Care Facility Revolving Loan Fund. 23  Sec. 44.29.350. Child care facility revolving loan fund. (a) There is created 24 in the Department of Health and Social Services the child care facility revolving loan 25 fund to carry out the purposes of AS 44.29.350 - 44.29.389. Except as provided in (b) 26 and (c) of this section, the fund may not be used for any other purpose. 27  (b) The department may use money in the fund for costs of administering 28 AS 44.29.350 - 44.29.389. 29  (c) On June 30 of each fiscal year, the unexpended and unobligated cash 30 balance of the fund that is attributable to loans owned by the fund lapses into the 31 general fund.

01  Sec. 44.29.355. Special account established. 02  (a) There is established as a special account within the child care facility 03 revolving loan fund the foreclosure expense account. This account is established as 04 a reserve from fund equity. 05  (b) The commissioner of health and social services may expend money 06 credited to the foreclosure expense account when necessary to protect the state's 07 security interest in collateral on loans made under AS 44.29.360 or to defray expenses 08 incurred during foreclosure proceedings after a default by an obligor. 09  Sec. 44.29.360. Powers and duties of the department in administering the 10 fund. (a) The department may 11  (1) make loans for the construction, renovation, and equipping of child 12 care facilities, including private nonprofit child care facilities; 13  (2) adopt regulations necessary to carry out the provisions of 14 AS 44.29.350 - 44.29.389, including regulations to establish reasonable fees for 15 services provided and charges for collecting the fee; and 16  (3) collect the fees and charges established under this subsection. 17  (b) The department shall 18  (1) develop eligibility standards for loans to child care facilities; 19  (2) adopt guidelines for the determination of loan terms. 20  Sec. 44.29.365. Loan terms. (a) A loan to a child care facility under 21 AS 44.29.350 - 44.29.389 may not exceed $50,000. 22  (b) The rate of interest charged shall be seven percent a year on the unpaid 23 balance of the loan. 24  (c) The duration for repayment of a loan may not exceed 20 years. 25  (d) All principal and interest payments, and any money chargeable to principal 26 or interest that is collected through liquidation by foreclosure or other process on loans 27 made under AS 44.29.350 - 44.29.389, shall be paid into the child care facility 28 revolving loan fund. 29  (e) If a child care facility ceases operation, any loan to the facility from the 30 fund is due on the date the facility ceases operation. 31  Sec. 44.29.370. Eligibility for loans. A child care facility is eligible for a

01 loan under AS 44.29.350 - 44.29.389 if the applicant 02  (1) submits to the department a plan for the use of the loan funds that 03 is approved by the commissioner; and 04  (2) meets additional eligibility standards established by the department 05 under AS 44.29.360(b)(1). 06  Sec. 44.29.375. Sale or transfer of mortgages and notes. The commissioner 07 of health and social services may sell or transfer at par value or at a premium to a 08 bank or other private purchaser for cash or other consideration the mortgages and notes 09 held by the department as security for loans made under AS 44.29.350 - 44.29.389. 10  Sec. 44.29.380. Disposal of property acquired by default or foreclosure. 11 The department shall dispose of property acquired through default or foreclosure of a 12 loan made under AS 44.29.350 - 44.29.389. Disposal shall be made in a manner that 13 serves the best interests of the state and may include the amortization of payments over 14 a period of years. 15  Sec. 44.29.389. Definitions. In AS 44.29.350 - 44.29.389, 16  (1) "child care facility" means an establishment the principal purpose 17 of which is to provide care for children not related by blood, marriage, or legal 18 adoption, including but not limited to day care centers, family day care homes, and 19 schools for preschool age children; 20  (2) "department" means the Department of Health and Social Services. 21 * Sec. 65. AS 44.31.020 is amended to read: 22  Sec. 44.31.020. Duties of department. The Department of Labor shall 23  (1) enforce the laws, and adopt regulations under them concerning 24 employer-employee relationships, including the safety, hours of work, wages, and 25 conditions of workers, including children; 26  (2) accumulate, analyze, and report labor statistics; 27  (3) operate systems of workers' compensation and unemployment 28 insurance; and 29  (4) gather data reflecting the cost of living in the various election 30 districts of the state upon request of the director of personnel under AS 39.27.030 ; and 31  (5) operate the federally funded employment and training programs

01 under 29 U.S.C. 1501 - 1792b (Job Training Partnership Act) . 02 * Sec. 66. AS 44.33.010 is amended to read: 03  Sec. 44.33.010. Commissioner of commerce and rural [ECONOMIC] 04 development. The principal executive officer of the Department of Commerce and 05 Rural [ECONOMIC] Development is the commissioner of commerce and rural 06 [ECONOMIC] development. 07 * Sec. 67. AS 44.33 is amended by adding a new section to read: 08  Sec. 44.33.015. Establishment of divisions; directors. (a) The following 09 divisions are created within the department: 10  (1) the division of rural affairs; 11  (2) the division of statewide development; 12  (3) the division of financial resources; and 13  (4) the division of administration. 14  (b) Each division designated in this section is under the administrative control 15 of the commissioner and under the supervision of a director who may be appointed by 16 the commissioner. 17 * Sec. 68. AS 44.33.020 is amended to read: 18  Sec. 44.33.020. Duties of department. The Department of Commerce and 19 Rural [ECONOMIC] Development shall 20  (1) administer the state programs relating to commerce, enforce the 21 laws relating to these programs, and adopt regulations under these laws; 22  (2) register corporations; 23  (3) collect corporation franchise taxes; 24  (4) enforce state laws regulating public utilities and other public service 25 enterprises, banking and securities, insurance, and other businesses and enterprises 26 touched with a public interest; 27  (5) make veterans' loans; 28  (6) [REPEALED 29  (7)] promote and develop civil aviation; 30  (7) [(8)] furnish the budgeting, clerical, and administrative services for 31 regulatory agencies and professional and occupational licensing boards not otherwise

01 provided for; 02  (8) [(9) REPEALED 03  (10) REPEALED 04  (11) REPEALED 05  (12)] conduct studies, enter into contracts and agreements, and make 06 surveys relating to the economic development of the state and, when appropriate, 07 assemble, analyze, and disseminate the findings obtained; 08  (9) [(13)] provide factual information and technical assistance for 09 potential industrial and commercial investors; 10  (10) [(14)] receive gifts, grants, and other aid that facilitate the powers 11 and duties of the department from agencies and instrumentalities of the United States 12 or other public or private sources; 13  (11) [(15)] establish and activate programs to achieve balanced 14 economic development in the state and advise the governor on economic development 15 policy matters; 16  (12) [(16)] formulate a continuing program for basic economic 17 development and for the necessary promotion, planning and research that will advance 18 the economic development of the state; 19  (13) [(17)] cooperate with private, governmental , and other public 20 institutions and agencies in the execution of economic development programs; 21  (14) [(18)] review the programs and annual reports of other departments 22 and agencies as they are related to economic development and prepare an annual report 23 on the economic growth of the state; 24  (15) [(19)] administer the economic development programs of the state; 25  (16) [(20)] perform all other duties and powers necessary or proper in 26 relation to economic development and planning for the state; 27  (17) [(21)] request tourism-related businesses in the state to provide 28 data regarding occupancy levels, traffic flow and gross receipts and to participate in 29 visitor surveys conducted by the department; data collected under this paragraph that 30 [WHICH] discloses the particulars of an individual business is not a matter of public 31 record and shall be kept confidential; however, this restriction does not prevent the

01 department from using the data to formulate tourism economic impact information 02 including expenditure patterns, tax receipts and fees, employment and income 03 attributable to tourism, and other information considered relevant to the planning, 04 evaluation and policy direction of tourism in the state; 05  (18) [(22) REPEALED 06  (23) REPEALED 07  (24)] provide administrative and budgetary services to the real estate 08 commission under as 08.88 as requested by the commission; 09  (19) [(25) REPEALED 10  (26) REPEALED 11  (27) REPEALED 12  (28)] sell at cost, to the extent possible, publications and promotional 13 materials developed by the department; 14  (20) [(29)] as delegated by the governor, administer under 16 U.S.C. 15 1856 the internal waters foreign processing permit procedures and collect related fees; 16  (21) [(30)] administer state laws relating to the issuance of business 17 licenses; 18  (22) [(31) REPEALED 19  (32) REPEALED 20  (33)] foster the growth of international trade within the state and 21 administer Alaska foreign offices ; 22  (23) comply with AS 15.07.055 to serve as a voter registration 23 agency to the extent required by state and federal law, including 42 U.S.C. 1973gg 24 (National Voter Registration Act of 1993); and 25  (24) operate the headstart funding program governed by 42 U.S.C. 26 9835 . 27 * Sec. 69. AS 44.33.020 is amended by adding a new subsection to read: 28  (b) The department may 29  (1) advise and assist local governments; 30  (2) serve as staff for the Local Boundary Commission; 31  (3) conduct studies and carry out experimental and pilot projects for the

01 purpose of developing solutions to community and regional problems; 02  (4) promote cooperative solutions to problems affecting more than one 03 community or region, including joint service agreements, regional compacts, and other 04 forms of cooperation; 05  (5) serve as a clearinghouse for information useful in solution of 06 community and regional problems, and channel to the appropriate authority requests 07 for information and services; 08  (6) advise and assist community and regional governments on matters 09 of finance, including but not limited to bond marketing and procurement of federal 10 funds; 11  (7) prepare suggested guidelines relating to the content of notice of 12 bond sale advertisements, prospectuses, and other bonding matters issued by local 13 governments; 14  (8) administer state funds appropriated for the benefit of unorganized 15 regions within the state, allowing for maximum participation by local advisory councils 16 and similar bodies; 17  (9) carry out those administrative functions in the unorganized borough 18 that the legislature may prescribe; 19  (10) study existing and proposed laws and state activities that affect 20 community and regional affairs and submit to the governor recommended changes in 21 those laws and activities; 22  (11) coordinate activities of the state that affect community and 23 regional affairs; 24  (12) assist in the development of new communities and serve as the 25 agent of the state for purposes of participation in federal programs relating to new 26 communities; 27  (13) supervise planning, management, and other activities required for 28 local eligibility for financial aid under those federal and state programs that provide 29 assistance to community and regional governments; 30  (14) apply for, receive, and use funds from federal and other sources, 31 public or private, for use in carrying out the powers and duties of the department;

01  (15) request and utilize the resources of other agencies of state 02 government in carrying out the purposes of this chapter to the extent such utilization 03 is more efficient than maintaining departmental staff, reimbursing the other agencies 04 when appropriate; 05  (16) carry out the powers and duties assigned it under AS 42.45; 06  (17) administer state and, as appropriate, federal programs for revenue 07 sharing, grants, and other forms of financial assistance to community and regional 08 governments; and 09  (18) carry out other functions and duties, consistent with law, necessary 10 or appropriate to accomplish the purpose of this chapter. 11 * Sec. 70. AS 44.33 is amended by adding new sections to article 1 to read: 12  Sec. 44.33.112. Fees for publications, research data, and other services. 13 The commissioner may establish by regulation and the department may charge 14 reasonable fees for department publications, research data, and other centralized 15 administrative services to cover the cost of reproduction, printing, mailing, distribution, 16 and other centralized administrative services. 17  Sec. 44.33.115. Exxon Valdez oil spill unincorporated rural community 18 grant fund. There is created in the department the Exxon Valdez oil spill 19 unincorporated rural community grant fund. The fund consists of money appropriated 20 to the fund from the Exxon Valdez oil spill restoration fund, the Alyeska settlement 21 fund, and other sources. Appropriations to the fund do not lapse unless otherwise 22 provided by the legislature in the bill making the appropriation to the fund. The 23 department may use the fund to make grants to unincorporated rural communities in 24 the area affected by the Exxon Valdez oil spill for capital projects for purposes of 25 restoring, replacing, or enhancing subsistence resources or services or other services 26 damaged or lost as the result of the Exxon Valdez oil spill. In this section, 27  (1) "Alyeska settlement fund" means the trust fund established in the 28 state treasury for the purpose of receiving, holding, and disbursing the settlement 29 proceeds received by the state under the Agreement and Consent Decree in re: The 30 Exxon Valdez, United States District Court, District of Alaska, Case No. A92-175 31 Civil, decree entered November 25, 1992;

01  (2) "Exxon Valdez oil spill restoration fund" means the fund established 02 by the Department of Revenue to implement the judgment entered by the United States 03 District Court for Alaska in the criminal case United States of America v. Exxon 04 Shipping Company and Exxon Corporation, No. A90-015 CR. 05  Sec. 44.33.118. Definitions. In AS 44.33.010 - 44.33.118, 06  (1) "commissioner" means the commissioner of commerce and rural 07 development; 08  (2) "department" means the Department of Commerce and Rural 09 Development. 10 * Sec. 71. AS 44.33 is amended by adding new sections to read: 11 Article 8A. Rural Development. 12  Sec. 44.33.740. Powers and duties. To promote development of rural areas 13 of the state, the department is authorized to 14  (1) investigate social and economic conditions of rural areas to 15 determine the need to expand economic opportunities and improve living conditions; 16  (2) formulate a coordinated program to broaden and diversify the 17 economic base of rural areas; 18  (3) coordinate administration of emergency relief, surplus food 19 distribution, or other public assistance programs, except the regular relief and 20 assistance programs of the federal government in rural areas; 21  (4) formulate and conduct a program of construction of basic facilities 22 to improve health, welfare, and economic security and provide employment and 23 income in the rural areas; 24  (5) promote training and educational programs designed to expand 25 employment opportunities for residents of rural areas; 26  (6) enter into agreements with other state agencies and departments to 27 provide for the distribution in rural communities of surplus electrical power from state- 28 owned power sources located in those communities and to expend funds for this purpose; 29  (7) make grants to communities for bulk fuel storage facilities; 30  (8) cooperate with the Department of Environmental Conservation and 31 other agencies to provide technical assistance to communities in the installation,

01 operation, and management of bulk fuel storage facilities. 02  Sec. 44.33.745. Limitations. A program of the department under 03 AS 44.33.740 in a rural area may not exceed $100,000 in cost a year. 04  Sec. 44.33.750. Bulk fuel storage facilities grant fund. (a) There is 05 established in the department the bulk fuel storage facilities grant fund. Grants may 06 be made by the department from this fund to a community to acquire and install 07 community bulk storage facilities. 08  (b) Grants made under this section for the acquisition and installation of a bulk 09 fuel storage facility may not exceed $100,000 per community. 10  (c) If the governing body of two or more communities determine that their fuel 11 requirements may be served by a single bulk fuel storage facility, the communities 12 may jointly apply for grants to acquire and install a single bulk fuel storage facility. 13 When communities apply jointly under this subsection, the limitation in (b) of this 14 section is multiplied by the number of communities that submit the joint application. 15  (d) Before a grant is made under this section, the city council or, if the 16 community is not incorporated, a reasonable representative body in the community 17 shall agree in writing to maintain and operate the bulk storage facility to be 18 constructed with the proceeds of the grant. 19  Sec. 44.33.755. Land conveyed in trust. (a) The commissioner 20  (1) shall accept, administer, and dispose of land conveyed to the state 21 in trust by village corporations under 43 U.S.C. 1613(c)(3) (Sec. 14(c)(3) of the Alaska 22 Native Claims Settlement Act) for the purposes specified in that section; 23  (2) may, with the concurrence of an appropriate village entity 24 recognized by the commissioner under (b) of this section or, in the absence of an 25 appropriate village entity, under procedures prescribed by regulations of the 26 commissioner, accept, administer, and dispose of land conveyed in trust by a state or 27 federal agency and by the dissolution of a municipality under AS 29.06.450 - 28 29.06.530. 29  (b) Transfer of land by sale, lease, right-of-way, easement, or permit, including 30 transfer of surface resources, may be made by the commissioner only after approval 31 of an appropriate village entity such as the traditional council, a village meeting, or a

01 village referendum. This approval shall be by resolution filed with the department. 02  (c) Within one complete state fiscal year after the incorporation of a 03 municipality in the village or of a municipality that includes all or part of the village, 04 land acquired under this section shall be conveyed without cost to the municipality, 05 and the municipality shall succeed to all the entrusted interest in the land. 06  (d) Separate accounts shall be maintained in the name of each village for the 07 land, including the revenue from the land, acquired from each village corporation 08 under this section, and every two years within 90 days of the close of the second state 09 fiscal year a statement of the account for each municipality shall be prepared by the 10 commissioner and be made available to the village and to the public upon request. 11  (e) Upon the conveyance of land to a municipality under this section, the 12 commissioner shall account to the municipality for all profits including interest 13 generated from the land. The municipality may then request the governor to submit 14 a request to the legislature for an appropriation for the amount due the municipality. 15  (f) Title to or an interest in land acquired by the department under this section 16 may not be acquired by adverse possession or prescription. Notwithstanding (a) - (e) 17 of this section, on the dissolution of a municipality under AS 29.06.450 - 29.06.530, 18 unimproved land that was owned by the municipality on the date of its dissolution and 19 received by the municipality from the state under a municipal land grant entitlement 20 program is transferred to the commissioner of natural resources. 21  (g) For the purposes of this section, "municipality" includes only first and 22 second class cities incorporated under the laws of the state. 23  Sec. 44.33.760. Loan information officers. (a) The department may provide 24 itinerant loan information officers to serve persons who reside outside the major 25 population centers of the state. 26  (b) The loan information officers shall be trained, to the extent that the 27 department considers necessary, in a program administered by the department and 28 approved by the Alaska Housing Finance Corporation, the Alaska Industrial 29 Development and Export Authority, and the principal departments of the executive 30 branch that administer loan programs. 31  (c) A majority of the loan information officers shall be persons who are

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

01  (c) The commissioner may use money from the fund to provide for loan 02 information officers under AS 44.33.760. 03  Sec. 44.33.770. Rural development loans. (a) The department may use 04 money from the rural development initiative fund to make a loan of up to $100,000 05 to a person, or a loan of up to $200,000 to two or more persons, to be used for 06 working capital, equipment, construction, or other commercial purposes by a business 07 located in a community with a population of 5,000 or less. A person who has received 08 a loan under this subsection may not be granted another loan until after the original 09 loan is entirely repaid. 10  (b) The department shall require collateral for each loan made under this 11 section and shall require that a reasonable amount of money from other nonstate 12 sources be committed for use on any project or enterprise for which money from a 13 loan will be used. The department by regulation may establish other conditions for 14 loans. The department shall by regulation establish rates of interest that are not less 15 than six percent a year and terms of repayment for loans made under this section. 16  Sec. 44.33.775. Disposal of property acquired by default or foreclosure. 17 The department shall dispose of property acquired through default or foreclosure of a 18 loan made from the rural development initiative fund. Disposal shall be made in a 19 manner that serves the best interests of the state, and may include the amortization of 20 payments over a period of years. The commissioner shall request an appropriation to 21 the fund of proceeds from disposal of property under this section. 22  Sec. 44.33.780. Definitions. In AS 44.33.740 - 44.33.780, 23  (1) "commissioner" means the commissioner of commerce and rural 24 development; 25  (2) "department" means the Department of Commerce and Rural 26 Development. 27 Article 8B. Planning Assistance. 28  Sec. 44.33.781. Planning assistance for development and maintenance of 29 district coastal management programs. (a) The department shall conduct a program 30 of research, training, and technical assistance to coastal resource districts necessary for 31 the development and implementation of district coastal management programs under

01 AS 46.40. The technical assistance shall include the direct granting to the coastal 02 resource districts of a portion of any funds received by the state from the federal 03 coastal zone management program, in amounts to be individually determined for each 04 coastal resource district by the commissioner of commerce and rural development. 05 State agencies shall assist the department in carrying out the purposes of this section. 06  Sec. 44.33.782. Planning assistance to platting authorities. To facilitate 07 planning in municipalities that exercise planning and zoning authority, the department 08 may provide planning assistance, including but not limited to surveys, land use studies, 09 urban renewal plans, technical services, model acts that include regulations designed 10 to encourage development and use of energy systems not dependent on oil or gas, and 11 other planning work to a city, borough, or other platting authority. In an area under 12 the jurisdiction, for planning purposes, of a city, borough, or other platting authority, 13 the department may not perform the planning work except at the request or with the 14 consent of the local authority. 15  Sec. 44.33.784. Assistance by cities and platting authorities. A city or 16 platting authority may make funds under its control available to the department for the 17 purposes of obtaining planning work or planning assistance, or both, for its area. The 18 department may contract for, accept, and expend the funds for urban planning for the 19 local jurisdiction. 20  Sec. 44.33.786. Land use planning and state facility procurement plan. 21 The department shall make recommendations to the Department of Transportation and 22 Public Facilities and to appropriate program agencies concerning the effect upon the 23 comprehensive plan or other land use plans or proposals of municipalities and 24 unincorporated communities with respect to the facility procurement plan required to 25 be prepared in accordance with AS 35.10.170 and AS 44.42.055. 26  Sec. 44.33.788. Other planning powers. The department may accept and 27 expend grants from the federal government and other public or private sources, may 28 contract with reference to them, and may enter into contracts and exercise all other 29 powers necessary to carry out AS 44.33.781 - 44.33.788. 30  Sec. 44.33.790. Definition. In AS 44.33.782 - 44.33.790, "department" means 31 the Department of Commerce and Rural Development.

01 * Sec. 72. AS 44.33 is amended by adding new sections to read: 02 Article 9A. Local Boundary Commission. 03  Sec. 44.33.810. Local boundary commission. There is in the Department of 04 Commerce and Rural Development a local boundary commission. The local boundary 05 commission consists of five members appointed by the governor for overlapping five- 06 year terms. One member shall be appointed from each of the four judicial districts described 07 in AS 22.10.010 and one member shall be appointed from the state at large. The member 08 appointed from the state at large is the chair of the commission. 09  Sec. 44.33.812. Powers and duties. (a) The local boundary 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 commerce and rural 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 or the 04 commissioner of commerce and rural development with the consent of the chair may 05 call a meeting or hearing of the local boundary commission. All meetings and 06 hearings shall be public. 07  Sec. 44.33.816. Minutes and records. The local boundary commission shall 08 keep minutes of all meetings and hearings. If the proceedings are transcribed, minutes 09 shall be made from the transcription. The minutes are a public record. All votes taken 10 by the commission shall be entered in the minutes. 11  Sec. 44.33.818. Notice of public hearings. Public notice of a hearing of the 12 local boundary commission shall be given in the area in which the hearing is to be 13 held at least 15 days before the date of the hearing. The notice of the hearing must 14 include the time, date, place, and subject of the hearing. The commissioner of 15 commerce and rural development shall give notice of the hearing at least three times 16 in the press, through other news media, or by posting in a public place, whichever is 17 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 the local 22 boundary commission must vote in favor of a proposed boundary change before it may 23 be presented to the legislature. 24  Sec. 44.33.824. Expenses. Members of the local boundary commission receive 25 no pay but are entitled to the travel expenses and per diem authorized for members of 26 boards and commissions under AS 39.20.180. 27  Sec. 44.33.826. Hearings on boundary changes. A local government 28 boundary change may not be proposed to the legislature unless a hearing on the change 29 has been held in or in the near vicinity of the area affected by the change. 30  Sec. 44.33.828. When boundary change takes effect. When a local 31 government boundary change is proposed to the legislature during the first 10 days of

01 any regular session, the change becomes effective 45 days after presentation or at the 02 end of the session, whichever is earlier, unless disapproved by a resolution concurred 03 in by a majority of the members of each house. 04 Article 9B. Borough Feasibility Studies. 05  Sec. 44.33.840. Borough feasibility studies. The commissioner may contract 06 for studies of the feasibility of establishing boroughs in the unorganized borough. A 07 study may be conducted under this section only if 08  (1) appropriations are available for that purpose; and 09  (2) the study is requested by a person residing in the area to be studied 10 or by a city located in the area to be studied. 11  Sec. 44.33.842. Requests for studies. A request for a study of the feasibility 12 of establishing a borough in the unorganized borough shall be submitted to the 13 commissioner in writing and must include 14  (1) a description of the boundaries of the area of the proposed study; 15 and 16  (2) an indication of local interest in the proposed study consisting of 17 either 18  (A) a petition requesting the study containing the signatures and 19 addresses of five percent of the voters residing in the area of the proposed 20 study based on the number of voters who voted in the area in the last statewide 21 election; or 22  (B) resolutions requesting the study adopted by the governing 23 bodies of at least five percent of the cities within the area of the proposed 24 study. 25  Sec. 44.33.844. Boundaries. The boundaries of an area studied shall conform 26 to the boundaries indicated in the request for the study under AS 44.33.842 unless the 27 commissioner, after a public hearing held in the area of the proposed study, determines 28 that the boundaries should be altered. In determining the boundaries of an area to be 29 studied, the commissioner shall consider 30  (1) the standards applicable to the incorporation of boroughs under 31 AS 29.05.031;

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

01  (C) the improvement of the delivery of services to the public 02 by the state in the area studied. 03  Sec. 44.33.849. Definition. In AS 44.33.840 - 44.33.849, "commissioner" 04 means the commissioner of commerce and rural development. 05 Article 9C. Alaska Regional Economic Assistance Program. 06  Sec. 44.33.895. Alaska regional economic assistance program. (a) The 07 department shall 08  (1) encourage the formation of regional development organizations by 09 providing assistance in forming organizations to interested individuals, including 10 information on how to qualify and apply for regional development grants and federal 11 funding under 42 U.S.C. 3121 - 3246 (Public Works and Economic Development Act 12 of 1965), as amended; 13  (2) assist an interested individual in establishing boundaries for a 14 proposed organization to ensure that the region 15  (A) is of sufficient geographic size and contains a large enough 16 population to form an economically viable unit with shared interests, resources, 17 traditions, and goals; 18  (B) contains at least one municipality that serves as a regional 19 center; and 20  (C) contains the entire area of each municipality included in the 21 region; 22  (3) gather information about regional economic issues, international 23 trade, and tourism from organizations; 24  (4) serve as liaison between organizations and other state agencies and 25 encourage other agencies to make resources available to help accomplish goals of the 26 organizations; 27  (5) assist each organization to 28  (A) provide services designed to encourage economic 29 development to local communities and businesses; 30  (B) collect and distribute economic information relevant to the 31 region;

01  (C) participate in state marketing campaigns and join state trade 02 missions that are relevant to the region; and 03  (D) develop and implement strategies to attract new industry, 04 expand international trade opportunities, and encourage tourism within the 05 region. 06  (b) Subject to (c) of this section, the department may make regional 07 development grants to organizations for projects the department determines will be of 08 value in encouraging economic development. During a fiscal year, the department may 09 make no more than 15 grants and may only make grants to one organization from a 10 particular region. An organization that is designated an economic development district 11 under 42 U.S.C. 3171 qualifies for grants under this subsection. The department shall 12 by regulation adopt procedures for applying for regional development grants, including 13 application deadlines. The department may by regulation establish additional grant 14 eligibility requirements. 15  (c) To qualify for a grant, a regional development organization must match the 16 grant by providing an amount of money from nonstate sources. The department shall 17 establish by regulation a formula that determines the amount of the match required 18 under this subsection based on the capability of each organization to generate money 19 from nonstate sources. The amount of match required may not exceed the amount of 20 grant money and may not be less than 20 percent of the grant. The total amount of 21 grant money provided to an organization during a fiscal year may not exceed 22 $100,000. 23  (d) There is established in the department the regional development fund 24 consisting of appropriations to the fund. Money from the fund may be used only for 25 regional development grants. 26  (e) In this section, 27  (1) "department" means the Department of Commerce and Rural 28 Development; 29  (2) "regional development organization" or "organization" means a 30 nonprofit organization or nonprofit corporation formed to encourage economic 31 development within a particular region of the state that includes the entire area of each

01 municipality within that region and that has a board of directors that represents the 02 region's economic, political, and social interests. 03 * Sec. 73. AS 44.85.030 is amended to read: 04  Sec. 44.85.030. Membership and vacancies. The bond bank authority 05 consists of the following five directors: the commissioner of revenue, the commissioner 06 of commerce and rural development [COMMUNITY AND REGIONAL AFFAIRS], 07 who shall each be a director ex officio with voting privileges, and three directors 08 appointed by the governor. The appointment of each director other than the 09 commissioner of revenue and the commissioner of commerce and rural development 10 [COMMUNITY AND REGIONAL AFFAIRS] is subject to confirmation by the 11 legislature. The three directors appointed by the governor serve at the governor's 12 pleasure for four-year terms. They must be residents of the state and qualified voters 13 at the time of appointment and shall comply with the requirements of AS 39.50 14 (conflict of interest). Each director shall hold office for the term of appointment and 15 until a successor has been appointed and qualified. A director is eligible for 16 reappointment. A vacancy in a directorship occurring other than by expiration of term 17 shall be filled in the same manner as the original appointment but for the unexpired 18 term only. Each director before entering upon the duties of office shall take and 19 subscribe to an oath to perform the duties faithfully, impartially, and justly to the best 20 of the director's ability. A record of the oath shall be filed in the office of the 21 governor. 22 * Sec. 74. AS 44.85.320(b) is amended to read: 23  (b) Before declaring the principal of notes or bonds due and payable, the 24 trustee must first give 30 days' notice in writing to the governor, the bond bank 25 authority, the commissioner of commerce and rural development [COMMUNITY 26 AND REGIONAL AFFAIRS], and the attorney general of the state. 27 * Sec. 75. AS 46.03.900(32) is amended to read: 28  (32) "village" means a place within the unorganized borough or within 29 a borough as to a power, function, or service that is not exercised or provided by the 30 borough on an areawide or nonareawide basis that 31  (A) has irrevocably waived, in a form approved by the

01 Department of Law, any claim of sovereign immunity that might arise under 02 this chapter; and 03  (B) has 04  (i) a council organized under 25 U.S.C. 476 (sec. 16 of 05 the Indian Reorganization Act); 06  (ii) a traditional village council recognized by the United 07 States as eligible for federal aid to Indians; or 08  (iii) a council recognized by the commissioner of 09 commerce and rural development [COMMUNITY AND REGIONAL 10 AFFAIRS] under regulations adopted by the Department of Commerce 11 and Rural Development [COMMUNITY AND REGIONAL 12 AFFAIRS] to determine and give official recognition of village entities 13 under AS 44.33.755(b) [AS 44.47.150(b)]; 14 * Sec. 76. AS 46.04.900(22) is amended to read: 15  (22) "village" means a place within the unorganized borough or within 16 a borough as to a power, function, or service that is not exercised or provided by the 17 borough on an areawide or nonareawide basis that 18  (A) has irrevocably waived, in a form approved by the 19 Department of Law, any claim of sovereign immunity that might arise under 20 this chapter; and 21  (B) has 22  (i) a council organized under 25 U.S.C. 476 (sec. 16 of 23 the Indian Reorganization Act); 24  (ii) a traditional village council recognized by the United 25 States as eligible for federal aid to Indians; or 26  (iii) a council recognized by the commissioner of 27 commerce and rural development [COMMUNITY AND REGIONAL 28 AFFAIRS] under regulations adopted by the Department of Commerce 29 and Rural Development [COMMUNITY AND REGIONAL 30 AFFAIRS] to determine and give official recognition of village entities 31 under AS 44.33.755(b) [AS 44.47.150(b)];

01 * Sec. 77. AS 46.08.040(a) is amended to read: 02  (a) In addition to money in the response account of the fund that is transferred 03 to the commissioner of commerce and rural development [COMMUNITY AND 04 REGIONAL AFFAIRS] to make grants under AS 29.60.510 and to pay for impact 05 assessments under AS 29.60.560, the commissioner of environmental conservation may 06 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) to 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) to review oil discharge prevention and contingency 06 plans submitted under AS 46.04.030; 07  (iv) to 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) to 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 Commerce and Rural 12 Development [COMMUNITY AND REGIONAL AFFAIRS] for payment by 13 the commissioner of commerce and rural development [COMMUNITY AND 14 REGIONAL AFFAIRS] of 15  (i) municipal impact grants when authorized under 16 AS 29.60.510(b)(2); 17  (ii) assessments of the social and economic effects of the 18 release of oil or hazardous substances as required by AS 29.60.560 19 when, in the judgment of the commissioner, the release of oil or a 20 hazardous substance is not one that is described in AS 46.08.045; and 21  (iii) grants to repair, improve, or replace fuel storage 22 facilities under the bulk fuel system emergency repair and upgrade 23 program; 24  (I) recover the costs to the state, a municipality, a village, or a 25 school district of a containment and cleanup resulting from the release or 26 threatened release of oil or a hazardous substance for which money was 27 expended from the prevention account; 28  (J) prepare, review, and revise 29  (i) the state's master oil and hazardous substance 30 discharge prevention and contingency plan required by AS 46.04.200; 31 and

01  (ii) a regional master oil and hazardous substance 02 discharge prevention and contingency plan required by AS 46.04.210; 03 and 04  (K) restore the environment by addressing the effects of an oil 05 or hazardous substance release. 06 * Sec. 78. AS 46.08.900(16) is amended to read: 07  (16) "village" means a place within the unorganized borough or within 08 a borough if the power, function, or service for which a grant application under 09 AS 29.60.510 is submitted is not exercised or provided by the borough on an areawide 10 or nonareawide basis at the time the grant application is submitted that 11  (A) has irrevocably waived, in a form approved by the 12 Department of Law, any claim of sovereign immunity that might arise in 13 connection with the use of grant money under 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 commerce and rural development [COMMUNITY AND REGIONAL 21 AFFAIRS] under regulations adopted by the Department of Commerce 22 and Rural Development [COMMUNITY AND REGIONAL 23 AFFAIRS] to determine and give official recognition of village entities 24 under AS 44.33.755(b) [AS 44.47.150(b)]. 25 * Sec. 79. AS 46.40.120(b) is amended to read: 26  (b) The commissioner of commerce and rural development [THE 27 DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS] may, after public 28 hearings held in the area affected, consolidate two or more regional educational 29 attendance areas as a single coastal resource service area 30  (1) if a substantial portion of the coastal area contains land and water 31 area owned by the federal government over which it exercises exclusive jurisdiction

01 or land held in trust by the federal government for Alaska Natives over which the state 02 would not exercise control as to use; or 03  (2) if, after giving due consideration to the standards applicable to 04 incorporation of borough governments and the likelihood that a borough will be 05 incorporated within the area, the commissioner determines that the functions to be 06 performed under this chapter could be undertaken more efficiently through the 07 combination of two or more regional educational attendance areas as a single coastal 08 resource service area. 09 * Sec. 80. AS 46.40.120(d) is amended to read: 10  (d) For purposes of coastal zone management only, the commissioner of 11 commerce and rural development [COMMUNITY AND REGIONAL AFFAIRS] 12 may, after public hearings held in the regional educational attendance area affected, 13 divide an existing regional educational attendance area into no more than three coastal 14 resource service areas according to geographic, cultural, economic, environmental, or 15 other features relevant to coastal management planning. However , 16  (1) each coastal resource service area formed by dividing an existing 17 regional educational attendance area must contain at least one first class city or home 18 rule city; 19  (2) a city within a coastal resource service area formed by dividing an 20 existing regional educational attendance area may not elect to exclude itself from the 21 coastal resource service area; and 22  (3) a coastal resource service area formed before June 1, 1980, may not 23 be divided for coastal management planning purposes. 24 * Sec. 81. AS 46.40.140(c) is amended to read: 25  (c) The commissioner of commerce and rural development [COMMUNITY 26 AND REGIONAL AFFAIRS], after consultation with residents of a coastal resource 27 service area, may divide a service area into sections only for the purpose of 28 nominating and electing board members. Division of a service area into sections for 29 the purpose of nomination and election shall be in accordance with the provisions of 30 AS 14.08.051(a). Division may be proposed in the petition submitted under 31 AS 46.40.130(a)(1), in the resolution submitted under AS 46.40.130(a)(2), at the

01 direction of the council under AS 46.40.130(a)(3), or may be proposed at any time by 02 the members of the coastal resource service area board. If proposed by the board, the 03 division of the service area into sections is subject to approval of a majority of the 04 qualified voters voting on the question in the coastal resource service area at the next 05 regular election or at a special election called for that purpose and, if approved, takes 06 effect at the next regular election of members of the coastal resource service area 07 board. 08 * Sec. 82. AS 46.40.170(a) is amended to read: 09  (a) If residents of a coastal resource service area reject organization of the 10 service area at an election called for the purpose and the council finds, after public 11 hearing, that major economic development activity has occurred or will occur within 12 the service area, the council may direct the Department of Commerce and Rural 13 Development [COMMUNITY AND REGIONAL AFFAIRS] to prepare and 14 recommend for consideration by the council and for submission to the legislature a 15 district coastal management program for the service area. 16 * Sec. 83. AS 46.40.170(b) is amended to read: 17  (b) At the request of the council, the Department of Commerce and Rural 18 Development [COMMUNITY AND REGIONAL AFFAIRS] shall complete the 19 district coastal management program in accordance with this chapter and the guidelines 20 and standards adopted by the council for a coastal resource service area that [WHICH] 21 has been organized but that [WHICH] has failed to make substantial progress in the 22 preparation of an approvable district coastal management program within 18 months 23 of certification of the results of an organization election or that [WHICH] has not 24 submitted for approval to the council a program within 30 months of certification of 25 the results of its organization election. Preparation of the program shall be conducted 26 in consultation with the coastal resource service area and shall, to the maximum extent 27 consistent with this chapter, reflect the expressed concerns of the residents of the 28 service area. 29 * Sec. 84. AS 46.40.180(a) is amended to read: 30  (a) Before adoption by a coastal resource service area board, or by the 31 Department of Commerce and Rural Development [COMMUNITY AND

01 REGIONAL AFFAIRS] under AS 46.40.170, a district coastal management program 02 shall be submitted for review to each city or village within the coastal resource service 03 area. The council of a city or traditional village council shall consider the program 04 submitted for review. Within 60 days of submission, the council of a city or 05 traditional village council shall either approve the program or enter objections to all 06 or any portion of the program. 07 * Sec. 85. AS 46.40.180(d) is amended to read: 08  (d) For purposes of this section, "village" means an unincorporated community 09 where at least 25 persons reside as a social unit as determined by the Department of 10 Commerce and Rural Development [COMMUNITY AND REGIONAL AFFAIRS]. 11 * Sec. 86. AS 46.40.190(a) is amended to read: 12  (a) A city within the coastal area that [WHICH] is not part of a coastal 13 resource service area shall be included for purposes of this chapter within an adjacent 14 coastal resource service area unless its governing body, by resolution adopted by a 15 majority of its membership, chooses to exclude the city from an adjacent coastal 16 resource service area and a copy of the resolution is filed with the commissioner of 17 commerce and rural development [COMMUNITY AND REGIONAL AFFAIRS]. 18 * Sec. 87. AS 46.40.210(2) is amended to read: 19  (2) "coastal resource district" means each of the following that 20 [WHICH] contains a portion of the coastal area of the state: 21  (A) unified municipalities; 22  (B) organized boroughs of any class that [WHICH] exercise 23 planning and zoning authority; 24  (C) home rule and first class cities of the unorganized borough 25 or within boroughs that [WHICH] do not exercise planning and zoning 26 authority; 27  (D) second class cities of the unorganized borough, or within 28 boroughs that [WHICH] do not exercise planning and zoning authority, that 29 [WHICH] have established a planning commission, and that [WHICH], in the 30 opinion of the commissioner of commerce and rural development 31 [COMMUNITY AND REGIONAL AFFAIRS], have the capability of preparing

01 and implementing a comprehensive district coastal management program under 02 AS 46.40.030; 03  (E) coastal resource service areas established and organized 04 under AS 29.03.020 and AS 46.40.110 - 46.40.180; 05 * Sec. 88. AS 46.40.210(5) is amended to read: 06  (5) "department" means the Department of Commerce and Rural 07 Development [COMMUNITY AND REGIONAL AFFAIRS]; 08 * Sec. 89. AS 47.05.030(a) is amended to read: 09  (a) Except as provided in (b) of this section and for purposes directly 10 connected with the administration of general assistance, adult public assistance, the day 11 care assistance program authorized under AS 44.29.300 - 44.29.339 [AS 44.47.250 - 12 44.47.310], or the Alaska temporary assistance program, and in accordance with the 13 regulations of the department, a person may not solicit, disclose, receive, make use of, 14 or authorize, knowingly permit, participate in, or acquiesce in the use of, a list of or 15 names of, or information concerning, persons applying for or receiving the assistance 16 directly or indirectly derived from the records, papers, files, or communications of the 17 department or subdivisions or agencies of the department, or acquired in the course of 18 the performance of official duties. 19 * Sec. 90. AS 47.18.010(c) is amended to read: 20  (c) The Department of Education, the Department of Commerce and Rural 21 Development [COMMUNITY AND REGIONAL AFFAIRS], and the Department of 22 Labor shall assist the department in developing the plan required under (a) of this 23 section. In addition, through appropriate means, the department shall solicit advice 24 from teens, parents, educators, school administrators, taxpayers, civic groups, 25 community organizations, Native organizations, officials of local governments, 26 religious institutions, and other concerned persons about how state programs can be 27 coordinated and operated in a manner that will enhance their effectiveness and 28 efficiency in addressing the many needs associated with adolescent parenting, the 29 prevention of adolescent pregnancies, and the provision of adolescent peer counseling. 30 * Sec. 91. AS 47.27.060 is amended to read: 31  Sec. 47.27.060. Job development. The department may establish cooperative

01 agreements with the Department of Labor, [DEPARTMENT OF COMMUNITY AND 02 REGIONAL AFFAIRS,] Department of Education, and Department of Commerce 03 [COMMUNITY] and Rural [ECONOMIC] Development, and with other public or 04 private sector organizations for the purpose of developing job, training, and educational 05 opportunities for families eligible for assistance under this chapter. 06 * Sec. 92. AS 47.27.900(2) is amended to read: 07  (2) "child care assistance" means payments made by the Department 08 of Health and Social Services [OR THE DEPARTMENT OF COMMUNITY AND 09 REGIONAL AFFAIRS] to Alaska temporary assistance program participant families 10 or to providers for the care of children of the participant families; 11 * Sec. 93. AS 47.80.090 is amended to read: 12  Sec. 47.80.090. Responsibilities. The council shall 13  (1) serve as a forum by which issues and benefits regarding current and 14 potential services to disabled and gifted persons may be discussed by consumer, public, 15 private, professional, and lay interests; 16  (2) advocate the needs of disabled and gifted persons before the 17 executive and legislative branches of the state government and before the public; 18  (3) advise the executive and legislative branches of the state 19 government and the private sector on programs and policies pertaining to current and 20 potential services to disabled or gifted persons and their families; 21  (4) submit periodic reports to the commissioner of health and social 22 services, the commissioner of education, and to other appropriate departments, on the 23 effects of current federal and state programs regarding services to disabled or gifted 24 persons; these reports must include program performance reports to the governor, the 25 federal government, and to state agencies as required under 20 U.S.C. 1482 and 42 26 U.S.C. 6024; 27  (5) in conjunction with the Departments of Health and Social Services 28 and Education, develop, prepare, adopt, periodically review, and revise as necessary 29 an annual state plan prescribing programs that meet the needs of persons with 30 developmental disabilities as required under 42 U.S.C. 6022; 31  (6) review and comment to commissioners of state departments on all

01 state plans and proposed regulations relating to programs for persons who are 02 experiencing disabilities before the adoption of a plan or regulation; for this purpose, 03 the appropriate departments shall submit the plans and proposed regulations to the 04 council; 05  (7) recommend the priorities and specifications for the use of funds 06 received by the state under 20 U.S.C. 1471 - 1485 and 42 U.S.C. 6000 - 6083; 07  (8) submit annually to the commissioner of health and social services, 08 the commissioner of education, and the commissioner of commerce and rural 09 development [COMMUNITY AND REGIONAL AFFAIRS] a proposed 10 interdepartmental program budget for services to disabled or gifted persons that 11 includes, insofar as possible, projected revenues and expenditures for programs 12 implemented by state agencies, local governmental agencies, and private organizations; 13 the interdepartmental program budget is an informational supplement to the regular 14 annual budgetary submissions of the departments to the Office of the Governor; 15  (9) provide information and guidance for the development of 16 appropriate special educational programs and services for exceptional children as 17 defined in AS 14.30.350; 18  (10) monitor and evaluate budgets or other implementation plans and 19 programs for disabled and gifted persons to assure nonduplication of services and 20 encourage efficient and coordinated use of federal, state, and private resources in the 21 provision of services; members of the council, with the approval of the council, have 22 access to information in the possession of state agencies subject to disclosure 23 restrictions imposed by state or federal confidentiality or privacy laws; 24  (11) perform other duties required under applicable federal laws or 25 AS 14.30.231 and as the governor may assign; [AND] 26  (12) govern the special education service agency and may hire 27 personnel necessary to operate the agency ; and [.] 28  (13) provide to the Alaska Mental Health Trust Authority for its review 29 and consideration recommendations concerning the integrated comprehensive mental 30 health program for the people of the state who are described in AS 47.30.056(b)(2) and 31 the use of the money in the mental health trust income account in a manner consistent

01 with regulations adopted under AS 47.30.031. 02 * Sec. 94. AS 47.90.040 is amended to read: 03  Sec. 47.90.040. Consultation and coordination. The commissioner shall 04 consult and cooperate with the Department of Health and Social Services; the 05 Department of Education, including the division of vocational rehabilitation; the 06 University of Alaska, community colleges , and other colleges as appropriate; [THE 07 DEPARTMENT OF LABOR, INCLUDING THE DIVISION OF EMPLOYMENT 08 SECURITY;] and other persons or agencies that the commissioner considers 09 appropriate in the implementation of this chapter. 10 * Sec. 95. AS 47.90.070(1) is amended to read: 11  (1) "commissioner" means the commissioner of labor [COMMUNITY 12 AND REGIONAL AFFAIRS]; 13 * Sec. 96. REPEALER. AS 44.17.005(17); AS 44.33.240, 44.33.242, 44.33.245, 44.33.255, 14 44.33.260, 44.33.270, 44.33.272, 44.33.275; and AS 44.47 are repealed. 15 * Sec. 97. REPEALER. AS 44.33.895, added by sec. 72 of this Act, is repealed July 1, 16 2000. 17 * Sec. 98. TRANSITIONAL PROVISIONS. (a) Litigation, hearings, investigations, and 18 other proceedings pending under a law repealed or amended by this Act, or in connection with 19 functions transferred by this Act, continue in effect and may be completed notwithstanding 20 a transfer or repeal provided for in this Act. 21 (b) Regulations in effect on June 30, 1998, that were adopted to implement a function 22 that is transferred by this Act remain in effect and shall be enforced by the agency to which 23 the function is transferred under this Act until amended by the agency to which the function 24 is transferred. 25 (c) Wherever in Alaska Statutes affected by this Act there is a reference to regulations 26 adopted under a section of law and there are no regulations adopted under that section because 27 previous regulations adopted under another section are being enforced under (b) of this 28 section, the reference shall be construed to refer to the previously adopted regulations until 29 they are amended by the new agency. 30 (d) Contracts, rights, liabilities, and obligations created by or under a law repealed or 31 amended by this Act, and in effect on June 30, 1998, remain in effect notwithstanding this

01 Act's taking effect. 02 (e) Records, equipment, appropriations, and other property of an agency of the state 03 whose functions are transferred under this Act shall be transferred to implement the provisions 04 of this Act. 05 * Sec. 99. REVISOR'S INSTRUCTION. Wherever in the Alaska Statutes and the Alaska 06 Administrative Code the terms "Department of Commerce and Economic Development" and 07 "commissioner of commerce and economic development" are used, they shall be read, 08 respectively, as "Department of Commerce and Rural Development" and "commissioner of 09 commerce and rural development" when to do so would be consistent with the changes made 10 by this Act. Under AS 01.05.031, the revisor of statutes shall implement this section in the 11 statutes and, under AS 44.62.125(b)(6), the regulations attorney shall implement this section 12 in the administrative code. 13 * Sec. 100. This Act takes effect July 1, 1998.