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HB 40: "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 and the commissioner 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; creating the office of international trade and relating to its duties; and providing for an effective date."

00HOUSE BILL NO. 40 01 "An Act combining parts of the Department of Commerce and Economic 02 Development and parts of the Department of Community and Regional Affairs by 03 transferring some of their duties to a new Department of Commerce and Rural 04 Development; transferring some of the duties of the Department of Commerce and 05 Economic Development and the Department of Community and Regional Affairs 06 to other existing agencies; eliminating the Department of Commerce and Economic 07 Development and the Department of Community and Regional Affairs; relating to 08 the Department of Commerce and Rural Development and the commissioner of 09 commerce and rural development; adjusting the membership of certain multi- 10 member bodies to reflect the transfer of duties among departments and the 11 elimination of departments; creating the office of international trade and relating 12 to its duties; and providing for an effective date." 13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 14 * Section 1. AS 08.40.190(b) is amended to read:

01  (b) AS 08.40.005 - 08.40.200 do not apply to a person engaged in 02  (1) the manufacture, maintenance, or repair of electrical apparatus or 03 equipment; 04  (2) electrical work, the cost of which does not exceed $5,000, involving 05 residences or small commercial establishments in communities that 06  (A) have a population of under 500 according to the latest 07 available federal or state census or other census approved by the Department of 08 Commerce and Rural Development [COMMUNITY AND REGIONAL 09 AFFAIRS]; or 10  (B) are over 50 miles by air or water transportation from the 11 business place of an electrical administrator licensed under AS 08.40.010 - 12 08.40.200; 13  (3) electrical installation on residential property that is owned by the 14 installer or a member of the installer's immediate family and not intended for sale at the 15 time of making the installation; 16  (4) the operation, maintenance, or repair of a television or radio 17 broadcasting system and the installation of a radio broadcasting system under 500 watts 18 input power except for A.C. power supply and wiring; 19  (5) the installation, maintenance, and repair of elevators so long as the 20 work is performed by an agent or employee of the elevator industry and is confined to 21 the elevator control system, which system does not include the power supply, wiring, 22 and motor connection; 23  (6) the operation, maintenance, and repair of telephone, telegraph, and 24 intercommunication facilities; 25  (7) the installation, maintenance, and repair of fire alarm, intrusion alarm, 26 or other low voltage signaling systems of 48 volts to ground or less; 27  (8) the maintenance or repair of diesel electric engines installed on heavy 28 construction equipment, either in a shop or on a job site; 29  (9) the installation in a commercial water well of the submersible pump 30 motor and the wiring to the well pump system controls if the controls are outside a 31 building or a structure;

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

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

01 of Commerce and Rural Development [COMMUNITY AND REGIONAL AFFAIRS] 02 and the local communities shall divide the regional educational attendance area into 03 sections for the purpose of nominating and electing regional school board members. If 04 a regional educational attendance area is divided into sections , each school board 05 member shall represent, as nearly as practicable, an equal number of persons. The basis 06 for the division of a regional educational attendance area into sections shall be the total 07 population of the area as reported in the most recent decennial federal census. If the 08 census is five years old or older, then other reliable population data, including but not 09 limited to population estimates based on public school enrollments, public utility 10 connections, registered voters, or certified employment payrolls, shall be used as the 11 basis for the division of the area into sections. Each section within a regional 12 educational attendance area shall consist of compact, contiguous territory and, as far as 13 practicable, each section shall contain an integrated socioeconomic, linguistically and 14 culturally homogeneous area. In the division of the regional school and attendance area 15 into sections, consideration shall be given to the transportation and communication 16 network to facilitate the administration of education and communication between 17 communities that comprise the area. Whenever possible, municipalities, other 18 governmental or regional corporate entities, drainage basins, and other identifiable 19 geographic features shall be used in describing the boundaries of the sections. 20 * Sec. 7. AS 14.17.410(b) is amended to read: 21  (b) Public school funding consists of state aid, a required local contribution, and 22 eligible federal impact aid determined as follows: 23  (1) state aid equals basic need minus a required local contribution and 24 90 percent of eligible federal impact aid for that fiscal year; basic need equals the sum 25 obtained under (D) of this paragraph, multiplied by the base student allocation set out 26 in AS 14.17.470; district adjusted ADM is calculated as follows: 27  (A) the ADM of each school in the district is calculated by 28 applying the school size factor to the student count as set out in AS 14.17.450; 29  (B) the number obtained under (A) of this paragraph is multiplied 30 by the district cost factor described in AS 14.17.460; 31  (C) the ADMs of each school in a district, as adjusted according

01 to (A) and (B) of this paragraph, are added; the sum is then multiplied by the 02 special needs factor set out in AS 14.17.420(a)(1); 03  (D) the number obtained for intensive services under 04 AS 14.17.420(a)(2) and the number obtained for correspondence study under 05 AS 14.17.430 are added to the number obtained under (C) of this paragraph; 06  (2) the required local contribution of a city or borough school district is 07 the equivalent of a four mill tax levy on the full and true value of the taxable real and 08 personal property in the district as of January 1 of the second preceding fiscal year, as 09 determined by the Department of Commerce and Rural Development [COMMUNITY 10 AND REGIONAL AFFAIRS] under AS 14.17.510 and AS 29.45.110, not to exceed 45 11 percent of a district's basic need for the preceding fiscal year as determined under (1) 12 of this subsection. 13 * Sec. 8. AS 14.17.410(c) is amended to read: 14  (c) In addition to the local contribution required under (b)(2) of this section, a 15 city or borough school district in a fiscal year may make a local contribution of not 16 more than the greater of 17  (1) the equivalent of a two mill tax levy on the full and true value of the 18 taxable real and personal property in the district as of January 1 of the second preceding 19 fiscal year, as determined by the Department of Commerce and Rural Development 20 [COMMUNITY AND REGIONAL AFFAIRS] under AS 14.17.510 and AS 29.45.110; 21 or 22  (2) 23 percent of the district's basic need for the fiscal year under (b)(1) 23 of this section. 24 * Sec. 9. AS 14.17.410(e) is amended to read: 25  (e) If a city or borough school district is established after July 1, 1998, for the 26 first three fiscal years in which the city or borough school district operates schools, local 27 contributions may be less than the amount that would otherwise be required under (b)(2) 28 of this section, except that 29  (1) in the second fiscal year of operations, local contributions must be 30 at least the greater of 31  (A) the local contributions, excluding federal impact aid, for the

01 previous fiscal year; or 02  (B) the sum of 10 percent of the district's eligible federal impact 03 aid for that year and the equivalent of a two mill tax levy on the full and true 04 value of the taxable real and personal property in the city or borough school 05 district as of January 1 of the second preceding fiscal year, as determined by the 06 Department of Commerce and Rural Development [COMMUNITY AND 07 REGIONAL AFFAIRS] under AS 14.17.510 and AS 29.45.110; and 08  (2) in the third year of operation, local contributions must be at least the 09 greater of 10  (A) the local contributions, excluding federal impact aid, for the 11 previous fiscal year; or 12  (B) the sum of 10 percent of the district's eligible federal impact 13 aid for that year and the equivalent of a three mill tax levy on the full and true 14 value of the taxable real and personal property in the district as of January 1 of 15 the second preceding fiscal year, as determined by the Department of Commerce 16 and Rural Development [COMMUNITY AND REGIONAL AFFAIRS] under 17 AS 14.17.510 and AS 29.45.110. 18 * Sec. 10. AS 14.17.490(b) is amended to read: 19  (b) A city or borough school district is not eligible for additional funding 20 authorized under (a) of this section unless, during the fiscal year in which the district 21 receives funding under (a) of this section, the district received a local contribution 22 equal to at least the equivalent of a four mill tax levy on the full and true value of the 23 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 14.17.510 and 26 AS 29.45.110. 27 * Sec. 11. AS 14.17.510(a) is amended to read: 28  (a) To determine the amount of required local contribution under 29 AS 14.17.410(b)(2) and to aid the department and the legislature in planning, the 30 Department of Commerce and Rural Development [COMMUNITY AND 31 REGIONAL AFFAIRS], in consultation with the assessor for each district in a city or

01 borough, shall determine the full and true value of the taxable real and personal 02 property in each district in a city or borough. If there is no local assessor or current 03 local assessment for a city or borough school district, then the Department of 04 Commerce and Rural Development [COMMUNITY AND REGIONAL AFFAIRS] 05 shall make the determination of full and true value from information available. In 06 making the determination, the Department of Commerce and Rural Development 07 [COMMUNITY AND REGIONAL AFFAIRS] shall be guided by AS 29.45.110. The 08 determination of full and true value shall be made by October 1 and sent by certified 09 mail, return receipt requested, on or before that date to the president of the school 10 board in each city or borough school district. Duplicate copies shall be sent to the 11 commissioner. The governing body of a city or borough that is a school district may 12 obtain judicial review of the determination. The superior court may modify the 13 determination of the Department of Commerce and Rural Development 14 [COMMUNITY AND REGIONAL AFFAIRS] only upon a finding of abuse of 15 discretion or upon a finding that there is no substantial evidence to support the 16 determination. 17 * Sec. 12. AS 15.07.055(a) is amended to read: 18  (a) The following agencies are designated voter registration agencies: 19  (1) the administrative component of the Department of Administration 20 that administers motor vehicle and driver's license laws; 21  (2) divisions of the Department of Health and Social Services that 22 provide public assistance through the food stamp program, Medicaid program, Special 23 Supplemental Food Program for Women, Infants, and Children (WIC), and Alaska 24 temporary assistance program; 25  (3) the division of the Department of Commerce and Rural 26 Development [COMMUNITY AND REGIONAL AFFAIRS] that is responsible for 27 municipal and regional assistance programs; and 28  (4) all recruitment offices of the armed forces of the United States 29 located in Alaska. 30 * Sec. 13. AS 15.13.010(a) is amended to read: 31  (a) This chapter applies

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

01  (B) one member who is a rural resident of the state or who has 02 expertise or experience with a regional housing authority; 03  (C) one member who has expertise or experience in residential 04 energy efficient home-building or weatherization; and 05  (D) one person who has expertise or experience in the provision 06 of senior or low-income housing. 07 * Sec. 16. AS 18.56.097 is amended to read: 08  Sec. 18.56.097. Collateral for loans. Under procedures established by 09 regulations of the corporation adopted in accordance with AS 18.56.088 a person may 10 pledge as security for the repayment of a loan made, purchased, or insured by the 11 corporation under this chapter a preference right the person holds to receive title to land 12 the person occupies as a primary place of residence, primary place of business, 13 subsistence campsite, or as headquarters for reindeer husbandry. The preference right 14 must be conveyed to the person by the Native corporation to which the land was granted 15 under section 14 of the Alaska Native Claims Settlement Act (85 Stat. 688, 43 U.S.C. 16 Sec. 1601 - 1626, as amended by P.L. 94-204) before it may be pledged as security 17 under this section. The Department of Commerce and Rural Development 18 [COMMUNITY AND REGIONAL AFFAIRS] shall prescribe procedures and standard 19 forms for establishing and appraising the value of a preference right held by a person 20 to secure the repayment of a loan made, purchased, or insured by the corporation under 21 this chapter. 22 * Sec. 17. AS 18.70.081 is amended to read: 23  Sec. 18.70.081. Approval of fire protection systems. Before October 30 of 24 each year the Department of Public Safety shall prepare and make available a list of 25 approved fire protection systems to [THE DEPARTMENT OF COMMUNITY AND 26 REGIONAL AFFAIRS,] the Department of Commerce and Rural [ECONOMIC] 27 Development [,] and the public. 28 * Sec. 18. AS 19.30.131(a) is amended to read: 29  (a) During each fiscal year the commissioner shall allocate sums appropriated 30 or otherwise designated for expenditure upon local service roads for that fiscal year 31 among the five allocation districts in the following manner: one-half in the ratio that the

01 area of each allocation district bears to the total area of the state and one-half in the ratio 02 that the population of each allocation district bears to the total population of the state 03 as shown by the latest available federal or state census or other census approved by the 04 Department of Commerce and Rural Development [COMMUNITY AND REGIONAL 05 AFFAIRS]. 06 * Sec. 19. AS 19.30.131(b) is amended to read: 07  (b) The commissioner shall also further allocate the sums in each allocation 08 district to the boroughs and unified municipalities within each allocation district in the 09 following manner: one-half in the ratio that the area of each organized borough or 10 unified municipality (excluding salt water areas) within that district bears to the total 11 area of the allocation district and one-half in the ratio that the population of each 12 organized borough area or each unified municipality within that district bears to the total 13 population of the allocation district as shown by the latest available federal or state 14 census or other census approved by the Department of Commerce and Rural 15 Development [COMMUNITY AND REGIONAL AFFAIRS]. 16 * Sec. 20. AS 19.30.131(c) is amended to read: 17  (c) The commissioner shall also further allocate portions of the sum allocated 18 to any organized borough and to any home rule city within the organized borough in the 19 following manner: 20  (1) one-half in the ratio that the area of each home rule city bears to the 21 total area of the organized borough excluding salt water areas; and 22  (2) one-half in the ratio that the population of each home rule city bears 23 to the total population of the organized borough as shown by the latest available federal 24 or state census or other census approved by the Department of Commerce and Rural 25 Development [COMMUNITY AND REGIONAL AFFAIRS]. 26 * Sec. 21. AS 23.05 is amended by adding a new section to read: 27  Sec. 23.05.065. Fees for publications, research data, and other services. The 28 commissioner may establish by regulation and the department may charge reasonable 29 fees for department publications, research data, and other centralized administrative 30 services to cover the cost of reproduction, printing, mailing, distribution, and other 31 centralized administrative services.

01 * Sec. 22. AS 23.05 is amended by adding new sections to read: 02 Article 6. Business Incentive Training Program. 03  Sec. 23.05.400. Business incentive training program established. (a) There 04 is established in the department the business incentive training program. The incentive 05 program shall be administered as a supplement to the Job Training Partnership Act (P.L. 06 No. 97-300). 07  (b) The purpose of the incentive program is to encourage private industry to 08 provide new job opportunities by offering assistance in training the new work force and 09 in retraining existing employees to implement new technologies. 10  Sec. 23.05.410. Administration. (a) The Alaska Human Resources Investment 11 Council established in AS 44.19.620 shall oversee the incentive program. The service 12 delivery areas established under 29 U.S.C. 1511 and subject to redesignation under 29 13 U.S.C. 1515 shall be used in the administration of the incentive program. The private 14 industry councils appointed under 29 U.S.C. 1512 and subject to reconstitution under 29 15 U.S.C. 1515 shall serve as the private industry councils for the incentive program. 16  (b) The council shall divide appropriations for the incentive program equally 17 among the private industry councils. If a private industry council lacks sufficient money 18 to fund a proposal, the private industry council may apply to the council for additional 19 funding. The council may approve reallocation of money from one service delivery area 20 to another to fund a particular proposal if it finds that the reallocation will best serve the 21 purposes of the program. 22  (c) The council shall adopt regulations under AS 44.62 (Administrative 23 Procedure Act) to implement AS 23.05.400 - 23.05.510. 24  Sec. 23.05.420. Business incentive training plan. (a) A private industry 25 council shall adopt a business incentive training plan for the service delivery area. The 26 plan must extend for two years to coincide with the term for the Job Training 27 Partnership Act (P.L. 97-300) and must contain 28  (1) identification of the entity or entities that will administer the 29 incentive program and be the grant recipient for grants from the state; 30  (2) a description of the services to be provided, including the estimated 31 duration of service and the estimated training cost per participant;

01  (3) procedures for identifying and selecting participants; 02  (4) performance goals established in accordance with standards under 03 AS 23.05.480; 04  (5) procedures for awarding grants to businesses; and 05  (6) the budget for two program years and any proposed expenditures for 06 the succeeding two program years in as much detail as required by the grant 07 administrator designated under AS 23.05.440. 08  (b) If changes in labor market conditions, funding, or other factors require 09 substantial deviation from an approved business incentive training plan, the private 10 industry council and the appropriate elected municipal official or officials shall submit 11 a modification of the plan and the budget for review under AS 23.05.430. 12  Sec. 23.05.430. Review and approval of business incentive training plan. 13 The business incentive training plan shall be published and made available for review 14 and comment as an attachment to the job training plan as set out in 29 U.S.C. 1515. 15 The business incentive training plan is subject to review and approval by the governor. 16  Sec. 23.05.440. Business incentive training grants. (a) Each private industry 17 council shall designate an administrative entity to be the grant recipient and 18 administrator for the region. An employer may apply to the grant administrator for a 19 business incentive grant if the employer is a private for-profit or nonprofit corporation, 20 partnership, or sole proprietor business. The grant administrator shall review 21 applications and award grants. 22  (b) Each grant administrator is responsible for the allocation of funds and the 23 eligibility of those enrolled in its programs. The grant administrator is responsible for 24 taking action against its subcontractors, subgrantees, and other recipients to eliminate 25 abuses in the programs they are carrying out, and to prevent misuse of funds. If the 26 arrangement is included in an approved job training plan, a grant administrator may 27 delegate the responsibility for determining eligibility under reasonable safeguards, 28 including provisions for reimbursement of costs incurred because of erroneous 29 determinations made with insufficient care. 30  (c) A business incentive training grant shall be used to recruit and train eligible 31 employees for newly created permanent or permanent seasonal positions or to enable

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

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

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

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

01 unless the level of skills provided in the program is in accordance with guidelines 02 established by the private industry council. 03  Sec. 23.05.510. Definitions. In 23.05.400 - 23.05.510, 04  (1) "council" means the Alaska Human Resources Investment Council 05 established in AS 44.19.620; 06  (2) "incentive program" means the business incentive training program 07 established under AS 23.05.400; 08  (3) "participant" means an individual receiving education or training, 09 including on-the-job training, under an incentive program grant. 10 * Sec. 23. AS 23.15.645(b) is amended to read: 11  (b) When a grant is awarded to the council, the department shall annually 12 provide to the council a priority list of targeted projects or services, based on 13 unemployment statistics, unemployment insurance claims, occupational and industrial 14 projections, availability of other training and employment programs, and other relevant 15 data. The department shall also provide annually to the council a priority list of criteria 16 for eligibility to maximize services to those people most in need of training under 17 AS 23.15.620 - 23.15.660. In developing the priority list for targeted projects and 18 services, the department shall solicit comments from the [DEPARTMENT OF 19 COMMUNITY AND REGIONAL AFFAIRS,] Department of Education, Department 20 of Commerce and Rural [ECONOMIC] Development, University of Alaska, organized 21 labor, the council, and the administrative entities of the substate service delivery areas 22 established for the council. The department shall give preference to projects and 23 services that train individuals in industries identified in the resident hire report required 24 under AS 36.10.130 as employing a disproportionate percentage of nonresident 25 individuals. 26 * Sec. 24. AS 24.08.035(e) is amended to read: 27  (e) If a bill or resolution, except an appropriation bill, significantly increases 28 costs to a municipality, there shall be attached to the measure a municipal fiscal note 29 containing an estimate for the current fiscal year and five succeeding fiscal years of the 30 cost to municipalities that would result from enactment of the measure. The last 31 committee to which the bill is referred on the day it is introduced in the house of origin

01 shall request the municipal fiscal note. It shall be prepared by the Department of 02 Commerce and Rural Development [COMMUNITY AND REGIONAL AFFAIRS]. 03 It shall be delivered in accordance with (d) of this section within five days of the 04 request, or within two days if the request is made after the 90th day of a regular session 05 or during a special session. The municipal fiscal note must contain information that 06 substantially complies with (c)(1), (2), and (6) - (9) of this section to the extent the 07 information is available to the department. 08 * Sec. 25. AS 26.23.071(b) is amended to read: 09  (b) The commission consists of the commissioners of commerce and rural 10 development [COMMUNITY AND REGIONAL AFFAIRS], environmental 11 conservation, fish and game, health and social services, labor, natural resources, public 12 safety, and transportation and public facilities, or the designees of the commissioners, 13 the adjutant general of the Department of Military and Veterans' Affairs or a designee, 14 and seven members of the public appointed by the governor, two of whom must be 15 members of a local emergency planning committee for an emergency planning district 16 that is predominantly rural in character and two of whom must be members of a local 17 emergency planning committee for an emergency planning district that is predominantly 18 urban in character. Two of the other three members of the public who are appointed to 19 the commission must be members of the governing body of, or the mayor of, a political 20 subdivision that has a local emergency planning committee or a person who, in the 21 opinion of the governor, is otherwise appropriate to represent the political subdivision. 22 The United States Department of Defense - Alaska Command, the Federal Emergency 23 Management Agency, the United States Environmental Protection Agency, and the 24 United States Coast Guard may each appoint a representative to serve on the commission 25 in an ex-officio, nonvoting capacity. To the extent practicable, the commission must 26 include members with expertise in the emergency response field. 27 * Sec. 26. AS 28.01.010(b) is amended to read: 28  (b) A municipality may adopt by reference all or a part of this title and 29 regulations adopted under this title, and may request and shall receive from the 30 Department of Commerce and Rural Development [COMMUNITY AND REGIONAL 31 AFFAIRS] and, as appropriate, either the Department of Administration or the

01 Department of Public Safety, assistance in the drafting of model ordinances for adoption 02 by reference. Notwithstanding (a) of this section, a municipality may enact necessary 03 ordinances to meet specific local requirements. 04 * Sec. 27. AS 29.06.040(c) is amended to read: 05  (c) In addition to the regulations governing annexation by local action adopted 06 under AS 44.33.812 [AS 44.47.567], the Local Boundary Commission shall establish 07 procedures for annexation and detachment of territory by municipalities by local action. 08 The procedures established under this subsection must include a provision that 09  (1) a proposed annexation and detachment must be approved by a 10 majority of votes on the question cast by voters residing in the area proposed to be 11 annexed or detached; 12  (2) municipally owned property adjoining the municipality may be 13 annexed by ordinance without voter approval; and 14  (3) an area adjoining the municipality may be annexed by ordinance 15 without an election if all property owners and voters in the area petition the governing 16 body. 17 * Sec. 28. AS 29.60.120(d) is amended to read: 18  (d) Before money may be distributed under this section, the commissioner of 19 health and social services shall certify to the commissioner of commerce and rural 20 development [COMMUNITY AND REGIONAL AFFAIRS] that any accumulation of 21 assets by nonprofit corporations or other recipients under this section is dedicated 22 irrevocably to a public purpose. 23 * Sec. 29. AS 29.60.370(a) is amended to read: 24  (a) The amount allocated to the per capita account in the safe communities 25 program shall be distributed to each municipality on the basis of population. Population 26 for the purpose of this section shall be as certified by the commissioner of commerce 27 and rural development [COMMUNITY AND REGIONAL AFFAIRS]. In determining 28 the population of a borough, the population of all cities in the borough shall be deducted 29 from the total population of the borough. 30 * Sec. 30. AS 29.60.599(9) is amended to read: 31  (9) "village" means a place within the unorganized borough or within a

01 borough if the power, function, or service for which a grant application is submitted 02 under AS 29.60.500 - 29.60.599 is not exercised or provided by the borough on an 03 areawide or nonareawide basis at the time the grant application is submitted, that 04  (A) has irrevocably waived, in a form approved by the 05 Department of Law, any claim of sovereign immunity that might arise in 06 connection with the use of grant money under this chapter; and 07  (B) has 08  (i) a council organized under 25 U.S.C. 476 (sec. 16 of 09 the Indian Reorganization Act); 10  (ii) a traditional village council recognized by the United 11 States as eligible for federal aid to Indians; or 12  (iii) a council recognized by the commissioner under 13 regulations adopted by the department to determine and give official 14 recognition of village entities under AS 44.33.755(b) [AS 44.47.150(b)]. 15 * Sec. 31. AS 29.60.620(b) is amended to read: 16  (b) For purposes of (a) of this section, population shall be determined by the 17 Department of Commerce and Rural Development [COMMUNITY AND REGIONAL 18 AFFAIRS] based on the latest figures of the United States Bureau of the Census or other 19 reliable population data. If a city within a borough has an approved grant for a service 20 to be provided on an areawide basis, the allocation under (a) of this section shall be 21 based on the population of the borough. 22 * Sec. 32. AS 29.60.650(2) is amended to read: 23  (2) "municipality" means a (A) city whose population is over 20,000; (B) 24 unified municipality whose population is over 100,000; or (C) second class borough 25 whose population is over 65,000; population for purposes of this paragraph shall be 26 determined by the Department of Commerce and Rural Development [COMMUNITY 27 AND REGIONAL AFFAIRS]. 28 * Sec. 33. AS 29.65.050(c) is amended to read: 29  (c) The director shall approve or disapprove each selection for patent within 30 nine months of its selection by a municipality. Before a decision is issued, the 31 Department of Commerce and Rural Development [COMMUNITY AND

01 REGIONAL AFFAIRS] shall review the selection and recommend approval or 02 disapproval of it. The director may disapprove a selection only upon a finding that the 03 public interest in retaining state ownership of the land outweighs the municipality's 04 interest in obtaining the land. If the director determines that the public interest in land 05 selected in satisfaction of an entitlement under AS 29.65.010(a)(13) can be adequately 06 protected by issuing a patent that is subject to stipulations, conditions, or covenants, 07 and if the municipality agrees to accept the land subject to those stipulations, 08 conditions, or covenants, the director may approve a selection that would otherwise be 09 disapproved and may issue the patent with the stipulations, conditions, or covenants 10 agreed to by the municipality. A patent shall be issued to the municipality for land 11 selected in satisfaction of a general grant land entitlement vested under AS 29.65.010 - 12 29.65.030 within three months after approval by the director of a plat of survey. 13 * Sec. 34. AS 29.65.050(d) is amended to read: 14  (d) Before disapproving a selection, the director shall notify the municipality in 15 writing of the decision and set out reasons for it. The municipality may submit a written 16 response within 30 days after receipt of the notice. Within 30 days after the period for 17 responding has expired, the director shall affirm, modify, or reverse the decision and 18 supply the municipality with written notice of that action. If the selection is 19 disapproved, the municipality may file notice of an appeal with the director. The appeal 20 shall be heard under procedures adopted by regulation of the Department of Natural 21 Resources. Before reaching a decision on an appeal the Department of Natural 22 Resources shall request the Department of Commerce and Rural Development 23 [COMMUNITY AND REGIONAL AFFAIRS] to review the matter and submit a 24 recommendation. After reviewing the recommendation, a decision on the appeal shall 25 be submitted by the Department of Natural Resources to the municipality in writing 26 within 30 days after the notice of appeal was filed with the director. A municipality 27 may appeal an adverse decision to the superior court under AS 44.62.560 - 44.62.570. 28 * Sec. 35. AS 29.65.060(f) is amended to read: 29  (f) For purposes of determining the per capita entitlement under (a) of this 30 section, the population of a municipality shall be the population determined by the 31 former commissioner of community and regional affairs under former AS 43.18.010

01 for the program year beginning July 1, 1978, for a municipality whose entitlement was 02 determined under former AS 29.18.201 or 29.18.202. 03 * Sec. 36. AS 29.65.120 is amended to read: 04  Sec. 29.65.120. Regulations. The commissioner of natural resources may, after 05 consultation with the Department of Commerce and Rural Development 06 [COMMUNITY AND REGIONAL AFFAIRS], adopt regulations in accordance with 07 AS 44.62 (Administrative Procedure Act) necessary to carry out the purposes of this 08 chapter. 09 * Sec. 37. AS 29.71.800(5) is amended to read: 10  (5) "commissioner" means the commissioner of commerce and rural 11 development [COMMUNITY AND REGIONAL AFFAIRS]; 12 * Sec. 38. AS 29.71.800(8) is amended to read: 13  (8) "department" means the Department of Commerce and Rural 14 Development [COMMUNITY AND REGIONAL AFFAIRS]; 15 * Sec. 39. AS 30.13.010(a) is amended to read: 16  (a) The residents of each area of the state within the boundaries of a regional 17 housing authority established under AS 18.55.996 that [WHICH] is located in whole or 18 in part in the unorganized borough of the state may create a public body corporate and 19 politic under the name and style of the "Resource Development Authority" with all or 20 any significant part of the name of the region of the state inserted. The boundaries of 21 the authority created shall be coterminous with the portion of the applicable regional 22 housing authority that lies in the unorganized borough. Creation of an authority is 23 initiated by a petition filed with the Department of Commerce and Rural Development 24 [COMMUNITY AND REGIONAL AFFAIRS] and a statement submitted to the 25 governor. The petition must include the proposed name of the authority, its boundaries, 26 and a statement of the facilities proposed to be provided by the authority. The petition 27 must be signed by 15 percent of the total number of residents in the portion of the 28 applicable regional housing authority that lies in the unorganized borough who cast votes 29 in the preceding general election. The Department of Commerce and Rural 30 Development [COMMUNITY AND REGIONAL AFFAIRS] shall review petitions for 31 content and signatures. If the department determines that the petition is adequate, it

01 shall transmit the petition to the director of elections. 02 * Sec. 40. AS 36.30.850(b)(11) is amended to read: 03  (11) agreements with providers of services under AS 44.29.300 04 [AS 44.47.250]; AS 47.07; AS 47.08; AS 47.10; 47.17; AS 47.24; and AS 47.27, 05 including contractors under AS 47.27.050; 06 * Sec. 41. AS 36.30.850(b)(30) is amended to read: 07  (30) contracts entered into with a regional development organization; in 08 this paragraph, "regional development organization" has the meaning given in 09 AS 44.33.895 [AS 44.47.900]; 10 * Sec. 42. AS 37.05.317 is amended to read: 11  Sec. 37.05.317. Grants to unincorporated communities. (a) When an amount 12 is appropriated or allocated as a grant under this section to an unincorporated 13 community, it shall be disbursed as follows: 14  (1) Within 45 days after the effective date of the appropriation or 15 allocation, the Department of Commerce and Rural Development [COMMUNITY 16 AND REGIONAL AFFAIRS] shall notify the governing body of the unincorporated 17 community, if any, that a grant is available. 18  (2) The Department of Commerce and Rural Development 19 [COMMUNITY AND REGIONAL AFFAIRS] shall determine if there is a qualified 20 incorporated entity in the community area that will agree to receive the grant and 21 administer it, subject to terms generally applicable to private grantees. If there is more 22 than one such entity, the Department of Commerce and Rural Development 23 [COMMUNITY AND REGIONAL AFFAIRS] shall select the most qualified and the 24 grant shall be awarded to that incorporated entity for the purposes specified in the 25 appropriation act. However, the Department of Commerce and Rural Development 26 [COMMUNITY AND REGIONAL AFFAIRS] shall give preference to a nonprofit 27 corporation organized by a community for receipt of the grant. 28  (3) If there is no incorporated entity qualified to receive the grant, the 29 Department of Commerce and Rural Development [COMMUNITY AND REGIONAL 30 AFFAIRS] shall administer the program as specified in the appropriation act directly or 31 through agents or contractors with whom it may contract in the community area.

01  (b) The Department of Labor shall require the qualified incorporated entity 02 awarded a grant or agents or contractors with whom the Department of Commerce and 03 Rural Development [COMMUNITY AND REGIONAL AFFAIRS] contracts under (a) 04 of this section to comply with the requirements of AS 36.10.150 - 36.10.175 for 05 employment generated by the grant or contract if the grant or contract is for a public 06 works project. 07 * Sec. 43. AS 37.05.530(c) is amended to read: 08  (c) The Department of Commerce and Rural Development [COMMUNITY 09 AND REGIONAL AFFAIRS] shall adopt regulations under which municipalities 10 impacted by National Petroleum Reserve - Alaska oil and gas development under 42 11 U.S.C. 6508 may apply for and be eligible to receive grants to alleviate the impact. The 12 department shall give priority in the allocation of grants to municipalities that are 13 experiencing or will experience the most direct or severe impact from oil and gas 14 development under 42 U.S.C. 6508 within the National Petroleum Reserve - Alaska. 15 The department shall fund all meritorious grant applications out of the money 16 appropriated to it each year. Within 10 days after the convening of each regular session 17 of the legislature, the department shall submit to the legislature a list of all 18 municipalities that have received grants, a list of all municipalities determined by the 19 department to be eligible for further grants, a recommendation of the amount of money 20 to be granted for those additional applications, and written justification of each past and 21 potential grant. 22 * Sec. 44. AS 37.06.010(g) is amended to read: 23  (g) For purposes of this section, in calculating the population of a borough the 24 population of each city in the borough is excluded. The determination of population 25 shall be based upon data used by the Department of Commerce and Rural 26 Development [COMMUNITY AND REGIONAL AFFAIRS] under AS 29.60.020. 27 * Sec. 45. AS 37.06.020(i) is amended to read: 28  (i) The limitations of AS 44.33.745 [AS 44.47.140] do not apply to a grant 29 made under this section. 30 * Sec. 46. AS 37.06.020(l) is amended to read: 31  (l) In this section, unless specified otherwise, "department" means the

01 Department of Commerce and Rural Development [COMMUNITY AND REGIONAL 02 AFFAIRS]. 03 * Sec. 47. AS 37.06.030(c) is amended to read: 04  (c) For purposes of (a) of this section, in calculating the population of a borough 05 the population of each city in the borough is excluded. The determination of population 06 shall be based upon data used by the Department of Commerce and Rural 07 Development [COMMUNITY AND REGIONAL AFFAIRS] under AS 29.60.020. 08 * Sec. 48. AS 37.06.080 is amended to read: 09  Sec. 37.06.080. Adoption of regulations. The Department of Administration 10 for grants under AS 37.06.010 and the Department of Commerce and Rural 11 Development [COMMUNITY AND REGIONAL AFFAIRS] for grants under 12 AS 37.06.020 13  (1) may adopt regulations that impose additional requirements or 14 procedures to implement, interpret, make specific, or otherwise carry out the applicable 15 provisions of this chapter for grants administered by the department; 16  (2) shall adopt regulations providing for periodic audits of the use of 17 money for grants administered by the department under this chapter, including audit of 18 the department's determination of the value of, and adequacy of the verification of the 19 actual use of, locally funded or contributed labor on projects funded by a grant under 20 this chapter. 21 * Sec. 49. AS 38.06.025(a) is amended to read: 22  (a) The board consists of the commissioner of commerce and rural 23 [ECONOMIC] development; the commissioner of revenue [COMMUNITY AND 24 REGIONAL AFFAIRS]; the commissioner of natural resources, who is a nonvoting 25 member; and five public members. 26 * Sec. 50. AS 39.50.200(b)(18) is amended to read: 27  (18) Local Boundary Commission ( AS 44.33.810 [AS 44.47.565]); 28 * Sec. 51. AS 41.15.180(a) is amended to read: 29  (a) When the commissioner of commerce and rural development 30 [COMMUNITY AND REGIONAL AFFAIRS] receives national forest income under 16 31 U.S.C. 500, the commissioner shall immediately pay to each organized borough in which

01 national forest land is located a share of the income from that forest; an organized 02 borough's share of income from a national forest shall be proportional to the area of the 03 national forest located within its boundaries. 04 * Sec. 52. AS 41.15.180(b) is amended to read: 05  (b) There is created as a separate account in the general fund the unorganized 06 borough national forest receipts fund. The fund consists of national forest income 07 received by the Department of Commerce and Rural Development [COMMUNITY 08 AND REGIONAL AFFAIRS] under 16 U.S.C. 500 for the percentage of a national 09 forest located within the unorganized borough. Seventy-five percent of the fund shall 10 be allocated for public schools and 25 percent for public roads. 11 * Sec. 53. AS 41.15.180(f) is amended to read: 12  (f) For the purpose of making distributions from the fund, the commissioner of 13 commerce and rural development [COMMUNITY AND REGIONAL AFFAIRS] shall 14 consult with the commissioner of education, for purposes of determining the number of 15 children in average daily membership in the public schools affected by this section, and 16 the commissioner of transportation and public facilities, to determine the total number 17 of road miles in the unorganized borough affected by this section. 18 * Sec. 54. AS 41.15.180(g) is amended to read: 19  (g) An organized borough, home rule city, first class city, second class city, 20 regional educational attendance area, or a municipality organized under federal law that 21 receives a national forest income payment or distribution under 16 U.S.C. 500 or this 22 section shall annually report and account to the commissioner of commerce and rural 23 development [COMMUNITY AND REGIONAL AFFAIRS] its use of the payment or 24 distribution for the purposes provided in (a) - (e) of this section. The commissioner of 25 commerce and rural development [COMMUNITY AND REGIONAL AFFAIRS] may 26 not distribute national forest income under this section to an entity in the unorganized 27 borough that has previously failed to report and account as required under this 28 subsection. 29 * Sec. 55. AS 42.45.060(a) is amended to read: 30  (a) A loan committee consisting of six [SEVEN] members is established. The 31 committee is composed of [THE COMMISSIONER OF COMMUNITY AND

01 REGIONAL AFFAIRS,] the commissioner of commerce and rural [ECONOMIC] 02 development, the director of management and budget, or the designees of the 03 commissioners or the director, and four public members. 04 * Sec. 56. AS 42.45.060(c) is amended to read: 05  (c) The commissioner of commerce and rural development [COMMUNITY 06 AND REGIONAL AFFAIRS] serves as chair of the committee. The committee may 07 elect other officers as necessary. A majority of the members of the committee constitute 08 a quorum and may exercise the powers of the committee. 09 * Sec. 57. AS 42.45.990(1) is amended to read: 10  (1) "department" means the Department of Commerce and Rural 11 Development [COMMUNITY AND REGIONAL AFFAIRS]; 12 * Sec. 58. AS 43.75.137 is amended to read: 13  Sec. 43.75.137. Additional refund. To the extent that appropriations are 14 available for the purpose, and notwithstanding the requirement of AS 37.07.080(e) that 15 approval of the office of management and budget is required, an amount equal to 50 16 percent of the tax revenue that is collected under this chapter from fisheries businesses 17 and is not subject to division with a municipality under AS 43.75.130 shall be 18 transmitted each fiscal year, without the approval of the office of management and 19 budget, by the department to the department of Commerce and Rural Development 20 [COMMUNITY AND REGIONAL AFFAIRS] for disbursal to eligible municipalities 21 under AS 29.60.450. 22 * Sec. 59. AS 43.77.040(b) is amended to read: 23  (b) A taxpayer who makes a contribution that qualifies for the credit authorized 24 by (a) of this section must apply to obtain the credit. The taxpayer shall apply to the 25 department in the manner provided by the department by regulation, and shall provide 26 to the commissioner all information relating to the contribution that may be required by 27 the department. Upon receipt of a complete application, the department, in consultation 28 with the Department of Commerce and Rural Development [COMMUNITY AND 29 REGIONAL AFFAIRS], shall approve or disapprove the application for the credit within 30 60 days. 31 * Sec. 60. AS 43.77.060(d) is amended to read:

01  (d) To the extent that appropriations are available for the purpose, and 02 notwithstanding the requirement of AS 37.07.080(e) that approval of the office of 03 management and budget is required, an amount equal to 50 percent of the tax revenue 04 that is collected under this chapter and is not subject to division with a municipality 05 under (a) - (c) of this section shall be transmitted each fiscal year, without the approval 06 of the office of management and budget, by the department to the Department of 07 Commerce and Rural Development [COMMUNITY AND REGIONAL AFFAIRS] for 08 disbursal to eligible municipalities under AS 29.60.450. 09 * Sec. 61. AS 44.19.145(a) is amended to read: 10  (a) The office shall 11  (1) provide technical assistance to the governor and the legislature in 12 identifying long range goals and objectives for the state and its political subdivisions; 13  (2) prepare and maintain a state comprehensive development plan; 14  (3) provide information and assistance to state agencies to aid in 15 governmental coordination and unity in the preparation of agency plans and programs; 16  (4) review planning within state government as may be necessary for 17 receipt of federal, state, or other funds; 18  (5) participate with other countries, provinces, states, or subdivisions of 19 them in international or interstate planning, and assist the state's local governments, 20 governmental conferences, and councils in planning and coordinating their activities; 21  (6) encourage educational and research programs that further state 22 planning and development, and provide administrative and technical services for them; 23  (7) publish [SUCH] statistical information or other documentary material 24 that [AS] will further the provisions and intent of AS 44.19.141 - 44.19.152; 25  (8) assist the governor and the Department of Commerce and Rural 26 Development [COMMUNITY AND REGIONAL AFFAIRS] in coordinating state 27 agency activities that have an effect on the solution of local and regional development 28 problems; 29  (9) serve as a clearinghouse for information, data, and other materials 30 that may be helpful or necessary to federal, state, or local governmental agencies in 31 discharging their respective responsibilities or in obtaining federal or state financial or

01 technical assistance; 02  (10) review all proposals for the location of capital improvements by any 03 state agency and advise and make recommendations concerning location of these capital 04 improvements; 05  (11) render, on behalf of the state, all federal consistency determinations 06 and certifications authorized by 16 U.S.C. 1456 (Sec. 307, Coastal Zone Management 07 Act of 1972), and each conclusive state consistency determination when a project 08 requires a permit, lease, or authorization from two or more state resource agencies. 09 * Sec. 62. AS 44.19.155(a) is amended to read: 10  (a) There is created in the Office of the Governor the Alaska Coastal Policy 11 Council. The council consists of the following: 12  (1) nine public members appointed by the governor from a list comprised 13 of at least three names from each region, nominated by the municipalities of each 14 region; the nominees shall be the mayor or member of the assembly or council of a 15 municipality; one public member shall be appointed from each of the following general 16 regions: 17  (A) northwest Alaska, including, generally, the area of the North 18 Slope Borough and the Northwest Arctic regional educational attendance area; 19  (B) Bering Straits, including, generally, the area of the Bering 20 Straits regional educational attendance area; 21  (C) southwest Alaska, including, generally, the area within the 22 Lower Yukon, Lower Kuskokwim, Southwest, and Lake and [&] Peninsula 23 regional educational attendance areas and the Bristol Bay Borough; 24  (D) Kodiak-Aleutians, including the area of the Kodiak Island 25 Borough and the Aleutian, Adak and Pribilof regional educational attendance 26 areas; 27  (E) Upper Cook Inlet, including the Municipality of Anchorage 28 and the Matanuska-Susitna Borough; 29  (F) Lower Cook Inlet, including, generally, the area within the 30 Kenai Peninsula Borough; 31  (G) Prince William Sound, including, generally, the area east of

01 the Kenai Peninsula Borough to 141 W. longitude; 02  (H) northern Southeast Alaska, including the area southeast of 03 141 W. longitude and north of 57 N. latitude, including the entirety of the City 04 and Borough of Sitka; and 05  (I) southern Southeast Alaska, including that portion of 06 southeastern Alaska not contained within the area described in (H) of this 07 paragraph; 08  (2) each of the following: 09  (A) the director of the office of management and budget; 10  (B) the commissioner of commerce and rural [ECONOMIC] 11 development; 12  (C) [THE COMMISSIONER OF COMMUNITY AND 13 REGIONAL AFFAIRS; 14  (D)] the commissioner of environmental conservation; 15  (D) [(E)] the commissioner of fish and game; 16  (E) [(F)] the commissioner of natural resources; and 17  (F) [(G)] the commissioner of transportation and public 18 facilities. 19 * Sec. 63. AS 44.19.155(d) is amended to read: 20  (d) Each member of the council shall select one person to serve as a permanent 21 alternate at meetings of the council. If a member of the council is unable to attend, the 22 member shall advise the alternate who may attend and act in the place of the member. 23 The alternate for a public member appointed under (a)(1) of this section shall, at the 24 time of the alternate's designation and throughout the period of service as a permanent 25 alternate, be the mayor or member of the assembly or council of a municipality within 26 the region from which the permanent member is appointed. The alternate for the 27 director of the office of management and budget, serving under (a)(2)(A) of this section, 28 shall be the director's designee within that office. The alternate for a designated member 29 serving under (a)(2)(B) - (F) [(a)(2)(B) - (G)] of this section shall be a deputy 30 commissioner of the department or the director of a division in the department. The 31 names of alternates shall be filed with the council.

01 * Sec. 64. AS 44.19.620(a) is amended to read: 02  (a) The Alaska Human Resource Investment Council is established in the Office 03 of the Governor. The council consists of the following voting members, not to exceed 04 26: 05  (1) the lieutenant governor or the lieutenant governor's designee; 06  (2) the commissioners of commerce and rural [ECONOMIC] 07 development, [COMMUNITY AND REGIONAL AFFAIRS,] education, health and 08 social services, and labor, or each respective commissioner's designee; 09  (3) one representative from the University of Alaska; 10  (4) four additional representatives of education, with one from local 11 public education, one from secondary vocational education, one from a postsecondary 12 vocational education institution, and one from adult basic education; 13  (5) four representatives of business and industry, with at least one 14 representative from the private industry councils appointed under 29 U.S.C. 1512 and 15 subject to reconstitution under 29 U.S.C. 1515; 16  (6) four representatives of organized labor that the governor shall appoint 17 from lists of nominees submitted by recognized state labor organizations; the governor 18 may reject a list submitted under this paragraph and request that another list be 19 submitted; 20  (7) at least one representative from an organization representing 21 employment and training needs of Alaska Natives; 22  (8) at least one representative of a community-based service organization; 23  (9) at least one representative who has personal or professional 24 experience with developmental disabilities; and 25  (10) at least one and up to four additional members of the private sector 26 to ensure a private sector majority and regional and local representation on the council. 27 * Sec. 65. AS 44.19.626(f) is amended to read: 28  (f) The following training programs are subject to the provisions of (d) and (e) 29 of this section: 30  (1) in the Department of Commerce and Rural Development 31 [COMMUNITY AND REGIONAL AFFAIRS] or operated by the department:

01  (A) One Stop Career Center; 02  (B) Job Training Partnership Act programs, assisting 03 communities in moving toward a self-sustainable economy and providing 04 training , coordinated with the Department of Health and Social Services ; 05  (C) state training and employment program (AS 23.15.620), 06 providing training and employment services for people who are unemployed or 07 likely to become unemployed, fostering new jobs, and increasing training 08 opportunities for workers severely affected by fluctuations in the state economy 09 or adversely affected by technology advances in the workplace , coordinated 10 with the Department of Labor ; 11  (2) in the Department of Education or operated by the department, the 12 non-public-school portions of the following programs: 13  (A) employment-related adult basic education; 14  (B) School-to-Work; 15  (C) vocational education and Tech Prep; 16  (D) Alaska Career Information System; 17  (E) high school completion project; 18  (F) Kotzebue Technical Center; 19  (G) Alaska Vocational Technical Center; 20  (3) in the Department of Health and Social Services: 21  (A) employment training services operated as part of the Alaska 22 Temporary Assistance Program (ATAP); 23  (B) Job Training Partnership Act programs under 29 U.S.C. 24 1501 - 1792b; 25  (4) in the Department of Labor: 26  (A) unemployment insurance grants provided under the federal 27 training relocation assistance program; 28  (B) Alaska works programs, assisting with the welfare-to-work 29 program; 30  (C) state training employment program, coordinated with the 31 Department of Community and Regional Affairs.

01 * Sec. 66. AS 44.19.626(g) is amended to read: 02  (g) The council shall assess the programs listed in this subsection and make 03 recommendations to the legislature in its report required under (b)(9) of this section 04 about whether to include one or more of these programs under the requirements of (f) 05 of this section: 06  (1) in the Department of Commerce and Rural Development 07 [COMMUNITY AND REGIONAL AFFAIRS] or operated by the department: 08  (A) local government assistance training and development, 09 including the rural utility business advisory program; 10  (B) energy operations, providing training in management and 11 administration of electric utilities and bulk fuel storage systems; 12  (2) in the Department of Corrections: 13  (A) Correctional Academy, training individuals applying for a 14 correctional officer position; 15  (B) inmate programs, providing vocational technical training and 16 education courses for inmates preparing to be released from a correctional 17 facility; 18  (C) correctional industries program, providing inmates with jobs 19 while they are incarcerated; 20  (3) in the Department of Environmental Conservation: 21  (A) remote maintenance worker program, providing training and 22 technical assistance to communities to keep drinking water and sewage disposal 23 systems running, and providing on-the-job training to local operators; 24  (B) water and wastewater operator training and assistance; 25  (C) federal drinking water operator training and certification; 26  (4) in the Department of Military and Veterans' Affairs: educational 27 benefits for members of the Alaska National Guard and the Alaska Naval Militia; 28  (5) in the Department of Public Safety: 29  (A) fire service training to maintain emergency training skills 30 for existing fire fighter staff and volunteers and individuals interested in 31 becoming fire fighters;

01  (B) Public Safety Training Academy, training trooper recruits; 02  (6) in the Department of Transportation and Public Facilities: 03  (A) engineer-in-training program, providing on-the-job training 04 for apprentice engineers to enable them to gain the experience necessary to be 05 certified; 06  (B) statewide transportation improvement program, offered by 07 the United States National Highway Institute; 08  (C) local technical assistance program, transferring technical 09 expertise to local governments; 10  (D) Native technical assistance program, transferring technical 11 expertise to Native governments; 12  (E) border technology exchange program, to coordinate highway 13 issues with the Yukon Territory; 14  (7) in the Department of Education: vocational rehabilitation client 15 services and special work projects; 16  (8) in the Department of Labor: employment services, including job 17 development, assisting individuals in finding employment, and assisting employed 18 individuals in finding other employment; 19  (9) in the Department of Administration: Alaska Professional 20 Development Institute, providing continuing education and training for employed 21 workers. 22 * Sec. 67. AS 44.19 is amended by adding a new section to read: 23 Article 13. Office of International Trade. 24  Sec. 44.19.630. International trade. (a) The office of international trade is 25 established in the office of the governor. The purpose of the office is to foster the 26 growth of trade between Alaska and foreign countries. 27  (b) The governor shall maintain foreign offices, including offices located in 28 Tokyo, Japan, and Seoul, Republic of Korea. The foreign offices shall serve as outlets 29 for information related to economic development, resources, and trade and as contact 30 points for government and private industry of Alaska and for the Pacific Rim nations of 31 Asia and other foreign countries to promote and maintain trade between the state and

01 those countries. 02  (c) The governor shall staff the foreign offices with persons the governor selects 03 based on their experience, training, and linguistic ability. The governor shall solicit 04 ideas from the legislature regarding desirable staff qualifications and its 05 recommendations of persons to staff the foreign offices. The governor may hire 06 additional personnel as necessary. 07  (d) The governor shall direct all state agencies, and request the federal 08 government and private industry, to provide the office with necessary reports, brochures, 09 and information requested by the office. 10  (e) The governor shall prepare a report annually on the activities and 11 accomplishments of the office under this section and notify the legislature that the report 12 is available. 13  (f) The expenses of operating the office's activities under this section, including 14 its foreign offices, shall be included in appropriations made to the governor. 15  (g) Employees of the office, including personnel in its foreign offices, are in the 16 partially exempt service. 17  (h) In this section, "office" means the office of international trade. 18 * Sec. 68. AS 44.21.200(a) is amended to read: 19  (a) The Alaska Commission on Aging is established in the Department of 20 Administration. The members of the commission include 21  (1) the commissioner of administration or the commissioner's designee; 22  (2) the commissioner of commerce and rural development 23 [COMMUNITY AND REGIONAL AFFAIRS] or the commissioner's designee; 24  (3) the commissioner of health and social services or the commissioner's 25 designee; 26  (4) the chair of the Pioneers' Homes Advisory Board under 27 AS 44.21.120; and 28  (5) seven persons selected on the basis of their knowledge and 29 demonstrated interest in the concerns of older Alaskans, appointed by the governor in 30 accordance with (b) of this section. 31 * Sec. 69. AS 44.29.020 is amended by adding a new subsection to read:

01  (c) The Department of Health and Social Services shall operate the head start 02 funding program governed by 42 U.S.C. 9835. 03 * Sec. 70. AS 44.29 is amended by adding new sections to read: 04 Article 4. Day Care Assistance; Child Care Grants. 05  Sec. 44.29.300. Powers and duties. (a) The department shall 06  (1) implement and administer a program to assist in providing day care 07 for the children of low and moderate income families according to the requirements of 08 AS 44.29.300 - 44.29.339; 09  (2) establish standards of eligibility for day care benefits; 10  (3) contract for the care of children of eligible families; 11  (4) establish procedures to periodically review the needs of families 12 receiving day care benefits; 13  (5) provide notification to the local government body of the request for 14 a contract with a day care facility. 15  (b) The department may 16  (1) adopt regulations necessary for the performance of its duties under 17 AS 44.29.300 - 44.29.339; 18  (2) contract with other entities to perform duties of the department under 19 AS 44.29.300 - 44.29.339 within an area specified by the department; within an area, 20 the department shall give higher priority to contracting with municipalities than with 21 other organizations. 22  Sec. 44.29.305. Administrative costs of program contractors. To defray 23 administrative expenses, a contractor under AS 44.29.300(b) may only retain $1,000 or 24 12 percent, whichever is greater, of the day care assistance program funds it receives 25 from the department under the contract. 26  Sec. 44.29.310. Conditions of receipt of benefits. Benefits may be paid for the 27 care of children of a low or moderate income family only if a parent or guardian, 28 because of the day care, is freed to work or to seek work or to attend school. Benefits 29 may not be paid for the care of children of a family where one parent or guardian is not 30 working, actively seeking work, or attending school and is physically and mentally 31 capable of caring for the children.

01  Sec. 44.29.315. Eligibility of families for benefits. The department shall 02 determine the eligibility of families for day care benefits on the basis of the following 03 factors: 04  (1) income of the family including salary, alimony, child support, 05 retirement benefits, social security, and any other source of income; 06  (2) number of children in the family; 07  (3) whether there is one parent or guardian solely responsible for the care 08 of the family. 09  Sec. 44.29.320. Contributions by parent or guardian. The department shall 10 develop a sliding fee scale based on the factors listed in AS 44.29.315 for purposes of 11 determining the amount to be contributed by the parent or guardian for child care. The 12 contribution of the parent or guardian shall be paid to the day care facility. 13  Sec. 44.29.325. Placement; payment by state. (a) Parents or guardians shall 14 select the day care facility for the care of their children. 15  (b) Benefits shall be paid by the department directly to the municipality or 16 organization contracting with the day care facility. 17  Sec. 44.29.330. Child care grant program. (a) A child care grant program 18 is established in the department to provide state assistance in the operation of child care 19 facilities. The department shall provide grants for the operation of child care facilities, 20 including private nonprofit child care facilities. Participation in the program is optional. 21  (b) To qualify for a grant under (a) or (d) of this section, the child care facility 22 must 23  (1) be currently licensed under AS 47.35 and applicable municipal 24 licensing requirements; 25  (2) participate in the day care assistance program under AS 44.29.300 - 26 44.29.339; and 27  (3) provide care under a payment system as provided in (g) of this 28 section. 29  (c) A grant under (a) of this section may not exceed $50 per month for each 30 child the child care facility cares for, or for each full-time equivalent, as determined by 31 the department. The grant shall be adjusted on a geographic basis by the same factor

01 as funding for a school district is adjusted under AS 14.17.460. 02  (d) In addition to the grants provided in (a) of this section, the department may, 03 subject to appropriations for that purpose, provide by grant or contract for the education 04 and training of child care employees or administrators. To receive a grant or contract 05 under this subsection or to participate in a training program under this subsection, the 06 child care facility must meet all the requirements of (b) of this section. 07  (e) An application for a grant under this section shall be made in the form 08 established by the department. 09  (f) A grant under (a) of this section shall be made monthly or quarterly and shall 10 be based on the monthly average daily full-time equivalent enrollment in the child care 11 facility. If the method of payment for the grant is other than monthly, it shall be at the 12 request of the child care facility with the approval of the department. Based on criteria 13 established by the department, the department may make quarterly advance payments. 14  (g) Each child care facility receiving a grant under (a) or (d) of this section shall 15 assure that at least 15 percent or one of its child care spaces receiving subsidy under this 16 section, whichever is greater, will be made available, if requested, to children eligible 17 for day care assistance under AS 44.29.300 - 44.29.339, whose parents or guardians wish 18 to pay for care based on attendance only. 19  (h) The commissioner shall, in consultation with interested child care providers 20 and parents, adopt regulations to carry out the purposes of this section. 21  Sec. 44.29.339. Definitions. In AS 44.29.300 - 44.29.339, 22  (1) "child" means a person below 13 years of age, or a minor who has 23 a developmental disability; 24  (2) "child care facility" means an establishment licensed under AS 47.35 25 including but not limited to day care centers, family day care homes, and schools for 26 preschool age children, which provides care for children not related by blood, marriage, 27 or legal adoption to the owner, operator, or manager of the facility; 28  (3) "day care" means the care, supervision, and guidance of a child or 29 children unaccompanied by a parent or legal guardian on a regular basis for periods of 30 less than 24 hours a day; 31  (4) "day care facility" means a center or home licensed in accordance

01 with the provisions of AS 47.35 or recognized by the federal government for the care 02 of children; 03  (5) "department" means the department of Community and Economic 04 Development; 05  (6) "developmental disability" means a disability under which a person 06 is incapable of self-care, as verified by a physician or licensed or certified psychologist 07 who has examined the person. 08 Article 5. Child Care Facility Revolving Loan Fund. 09  Sec. 44.29.350. Child care facility revolving loan fund. (a) There is created 10 in the Department of Health and Social Services the child care facility revolving loan 11 fund to carry out the purposes of AS 44.29.350 - 44.29.389. Except as provided in (b) 12 and (c) of this section, the fund may not be used for any other purpose. 13  (b) The department may use money in the fund for costs of administering 14 AS 44.29.350 - 44.29.389. 15  (c) On June 30 of each fiscal year, the unexpended and unobligated cash balance 16 of the fund that is attributable to loans owned by the fund lapses into the general fund. 17  Sec. 44.29.355. Special account established. (a) There is established as a 18 special account within the child care facility revolving loan fund the foreclosure expense 19 account. This account is established as a reserve from fund equity. 20  (b) The commissioner of health and social services may expend money credited 21 to the foreclosure expense account when necessary to protect the state's security interest 22 in collateral on loans made under AS 44.29.360 or to defray expenses incurred during 23 foreclosure proceedings after a default by an obligor. 24  Sec. 44.29.360. Powers and duties of the department in administering the 25 fund. (a) The department may 26  (1) make loans for the construction, renovation, and equipping of child 27 care facilities, including private nonprofit child care facilities; 28  (2) adopt regulations necessary to carry out the provisions of 29 AS 44.29.350 - 44.29.389, including regulations to establish reasonable fees for services 30 provided and charges for collecting the fee; and 31  (3) collect the fees and charges established under this subsection.

01  (b) The department shall 02  (1) develop eligibility standards for loans to child care facilities; 03  (2) adopt guidelines for the determination of loan terms. 04  Sec. 44.29.365. Loan terms. (a) A loan to a child care facility under 05 AS 44.29.350 - 44.29.389 may not exceed $50,000. 06  (b) The rate of interest charged shall be seven percent a year on the unpaid 07 balance of the loan. 08  (c) The duration for repayment of a loan may not exceed 20 years. 09  (d) All principal and interest payments, and any money chargeable to principal 10 or interest that is collected through liquidation by foreclosure or other process on loans 11 made under AS 44.29.350 - 44.29.389, shall be paid into the child care facility revolving 12 loan fund. 13  (e) If a child care facility ceases operation, any loan to the facility from the fund 14 is due on the date the facility ceases operation. 15  Sec. 44.29.370. Eligibility for loans. A child care facility is eligible for a loan 16 under AS 44.29.350 - 44.29.389 if the applicant 17  (1) submits to the department a plan for the use of the loan funds that 18 is approved by the commissioner; and 19  (2) meets additional eligibility standards established by the department 20 under AS 44.29.360(b)(1). 21  Sec. 44.29.375. Sale or transfer of mortgages and notes. The commissioner 22 of health and social services may sell or transfer at par value or at a premium to a bank 23 or other private purchaser for cash or other consideration the mortgages and notes held 24 by the department as security for loans made under AS 44.29.350 - 44.29.389. 25  Sec. 44.29.380. Disposal of property acquired by default or foreclosure. The 26 department shall dispose of property acquired through default or foreclosure of a loan 27 made under AS 44.29.350 - 44.29.389. Disposal shall be made in a manner that serves 28 the best interests of the state and may include the amortization of payments over a 29 period of years. 30  Sec. 44.29.389. Definitions. In AS 44.29.350 - 44.29.389, 31  (1) "child care facility" means an establishment the principal purpose of

01 which is to provide care for children not related by blood, marriage, or legal adoption, 02 including but not limited to day care centers, family day care homes, and schools for 03 preschool age children; 04  (2) "department" means the Department of Health and Social Services. 05 * Sec. 71. AS 44.31.020 is amended to read: 06  Sec. 44.31.020. Duties of department. The Department of Labor shall 07  (1) enforce the laws, and adopt regulations under them concerning 08 employer-employee relationships, including the safety, hours of work, wages, and 09 conditions of workers, including children; 10  (2) accumulate, analyze, and report labor statistics; 11  (3) operate systems of workers' compensation and unemployment 12 insurance; and 13  (4) gather data reflecting the cost of living in the various election 14 districts of the state upon request of the director of personnel under AS 39.27.030 ; and 15  (5) operate the federally funded employment and training programs 16 under 29 U.S.C. 1501 - 1792b (Job Training Partnership Act) . 17 * Sec. 72. AS 44.33.010 is amended to read: 18  Sec. 44.33.010. Commissioner of commerce and rural [ECONOMIC] 19 development. The principal executive officer of the Department of Commerce and 20 Rural [ECONOMIC] Development is the commissioner of commerce and rural 21 [ECONOMIC] development. Whenever a statute provides that the commissioner is 22 a member of a board, council, or other similar entity, the commissioner may 23 designate another person to act in the commissioner's place. 24 * Sec. 73. AS 44.33 is amended by adding a new section to read: 25  Sec. 44.33.015. Establishment of divisions; directors. (a) The following 26 divisions are created within the department: 27  (1) the division of rural affairs; 28  (2) the division of statewide development; 29  (3) the division of occupational licensing; 30  (4) the division of investments; 31  (5) the division of insurance;

01  (6) the division of banking, securities, and corporations; and 02  (7) the division of administration. 03  (b) Each division designated in this section is under the administrative control 04 of the commissioner and under the supervision of a director who may be appointed by 05 the commissioner. 06  (c) The governor and the commissioner may not create a division within the 07 department that is not authorized under (a) of this section. 08 * Sec. 74. AS 44.33.020 is amended to read: 09  Sec. 44.33.020. Duties of department. The Department of Commerce and 10 Rural [ECONOMIC] Development shall 11  (1) administer the state programs relating to commerce, enforce the laws 12 relating to these programs, and adopt regulations under these laws; 13  (2) register corporations; 14  (3) collect corporation franchise taxes; 15  (4) enforce state laws regulating public utilities and other public service 16 enterprises, banking and securities, insurance, and other businesses and enterprises 17 touched with a public interest; 18  (5) make veterans' loans; 19  (6) [REPEALED 20  (7)] promote and develop civil aviation; 21  (7) [(8)] furnish the budgeting, clerical, and administrative services for 22 regulatory agencies and professional and occupational licensing boards not otherwise 23 provided for; 24  (8) [(9) REPEALED 25  (10) REPEALED 26  (11) REPEALED 27  (12)] conduct studies, enter into contracts and agreements, and make 28 surveys relating to the economic development of the state and, when appropriate, 29 assemble, analyze, and disseminate the findings obtained; 30  (9) [(13)] provide factual information and technical assistance for 31 potential industrial and commercial investors;

01  (10) [(14)] receive gifts, grants, and other aid that facilitate the powers 02 and duties of the department from agencies and instrumentalities of the United States or 03 other public or private sources; 04  (11) [(15)] establish and activate programs to achieve balanced economic 05 development in the state and advise the governor on economic development policy 06 matters; 07  (12) [(16)] formulate a continuing program for basic economic 08 development and for the necessary promotion, planning and research that will advance 09 the economic development of the state; 10  (13) [(17)] cooperate with private, governmental , and other public 11 institutions and agencies in the execution of economic development programs; 12  (14) [(18)] review the programs and annual reports of other departments 13 and agencies as they are related to economic development and prepare an annual report 14 on the economic growth of the state; 15  (15) [(19)] administer the economic development programs of the state; 16  (16) [(20)] perform all other duties and powers necessary or proper in 17 relation to economic development and planning for the state; 18  (17) [(21)] request tourism-related businesses in the state to provide data 19 regarding occupancy levels, traffic flow and gross receipts and to participate in visitor 20 surveys conducted by the department; data collected under this paragraph that [WHICH] 21 discloses the particulars of an individual business is not a matter of public record and 22 shall be kept confidential; however, this restriction does not prevent the department from 23 using the data to formulate tourism economic impact information including expenditure 24 patterns, tax receipts and fees, employment and income attributable to tourism, and other 25 information considered relevant to the planning, evaluation and policy direction of 26 tourism in the state; 27  (18) [(22) REPEALED 28  (23) REPEALED 29  (24)] provide administrative and budgetary services to the real estate 30 commission under as 08.88 as requested by the commission; 31  (19) [(25) REPEALED

01  (26) REPEALED 02  (27) REPEALED 03  (28)] sell at cost, to the extent possible, publications and promotional 04 materials developed by the department; 05  (20) [(29)] as delegated by the governor, administer under 16 U.S.C. 06 1856 the internal waters foreign processing permit procedures and collect related fees; 07  (21) [(30)] administer state laws relating to the issuance of business 08 licenses; 09  (22) comply with AS 15.07.055 to serve as a voter registration agency 10 to the extent required by state and federal law, including 42 U.S.C. 1973gg 11 (National Voter Registration Act of 1993); 12  [(31) REPEALED 13  (32) REPEALED 14  (33) FOSTER THE GROWTH OF INTERNATIONAL TRADE 15 WITHIN THE STATE AND ADMINISTER ALASKA FOREIGN OFFICES]. 16 * Sec. 75. AS 44.33.020 is amended by adding a new subsection to read: 17  (b) The department may 18  (1) advise and assist local governments; 19  (2) serve as staff for the Local Boundary Commission; 20  (3) conduct studies and carry out experimental and pilot projects for the 21 purpose of developing solutions to community and regional problems; 22  (4) promote cooperative solutions to problems affecting more than one 23 community or region, including joint service agreements, regional compacts, and other 24 forms of cooperation; 25  (5) serve as a clearinghouse for information useful in solution of 26 community and regional problems, and channel to the appropriate authority requests for 27 information and services; 28  (6) advise and assist community and regional governments on matters 29 of finance, including but not limited to bond marketing and procurement of federal 30 funds; 31  (7) prepare suggested guidelines relating to the content of notice of bond

01 sale advertisements, prospectuses, and other bonding matters issued by local 02 governments; 03  (8) administer state funds appropriated for the benefit of unorganized 04 regions within the state, allowing for maximum participation by local advisory councils 05 and similar bodies; 06  (9) carry out those administrative functions in the unorganized borough 07 that the legislature may prescribe; 08  (10) study existing and proposed laws and state activities that affect 09 community and regional affairs and submit to the governor recommended changes in 10 those laws and activities; 11  (11) coordinate activities of the state that affect community and regional 12 affairs; 13  (12) assist in the development of new communities and serve as the 14 agent of the state for purposes of participation in federal programs relating to new 15 communities; 16  (13) supervise planning, management, and other activities required for 17 local eligibility for financial aid under those federal and state programs that provide 18 assistance to community and regional governments; 19  (14) advise and assist municipalities on procedures of assessment, 20 valuation, and taxation, and notify municipalities of major errors in those procedures; 21  (15) apply for, receive, and use funds from federal and other sources, 22 public or private, for use in carrying out the powers and duties of the department; 23  (16) request and utilize the resources of other agencies of state 24 government in carrying out the purposes of this chapter to the extent such utilization is 25 more efficient than maintaining departmental staff, reimbursing the other agencies when 26 appropriate; 27  (17) carry out the powers and duties assigned it under AS 42.45; 28  (18) administer state and, as appropriate, federal programs for revenue 29 sharing, grants, and other forms of financial assistance to community and regional 30 governments; and 31  (19) carry out other functions and duties, consistent with law, necessary

01 or appropriate to accomplish the purpose of this chapter. 02 * Sec. 76. AS 44.33 is amended by adding new sections to article 1 to read: 03  Sec. 44.33.112. Fees for publications, research data, and other services. The 04 commissioner may establish by regulation and the department may charge reasonable 05 fees for department publications, research data, and other centralized administrative 06 services to cover the cost of reproduction, printing, mailing, distribution, and other 07 centralized administrative services. 08  Sec. 44.33.115. Exxon Valdez oil spill unincorporated rural community 09 grant fund. There is created in the department the Exxon Valdez oil spill 10 unincorporated rural community grant fund. The fund consists of money appropriated 11 to the fund from the Exxon Valdez oil spill restoration fund, the Alyeska settlement 12 fund, and other sources. Appropriations to the fund do not lapse unless otherwise 13 provided by the legislature in the bill making the appropriation to the fund. The 14 department may use the fund to make grants to unincorporated rural communities in the 15 area affected by the Exxon Valdez oil spill for capital projects for purposes of restoring, 16 replacing, or enhancing subsistence resources or services or other services damaged or 17 lost as the result of the Exxon Valdez oil spill. In this section, 18  (1) "Alyeska settlement fund" means the trust fund established in the 19 state treasury for the purpose of receiving, holding, and disbursing the settlement 20 proceeds received by the state under the Agreement and Consent Decree in re: The 21 Exxon Valdez, United States District Court, District of Alaska, Case No. A92-175 Civil, 22 decree entered November 25, 1992; 23  (2) "Exxon Valdez oil spill restoration fund" means the fund established 24 by the Department of Revenue to implement the judgment entered by the United States 25 District Court for Alaska in the criminal case United States of America v. Exxon 26 Shipping Company and Exxon Corporation, No. A90-015 CR. 27  Sec. 44.33.118. Definitions. In AS 44.33.010 - 44.33.118, 28  (1) "commissioner" means the commissioner of commerce and rural 29 development; 30  (2) "department" means the Department of Commerce and Rural 31 Development.

01 * Sec. 77. AS 44.33 is amended by adding new sections to read: 02 Article 7A. Rural Development. 03  Sec. 44.33.740. Powers and duties. To promote development of rural areas of 04 the state, the department is authorized to 05  (1) investigate social and economic conditions of rural areas to determine 06 the need to expand economic opportunities and improve living conditions; 07  (2) formulate a coordinated program to broaden and diversify the 08 economic base of rural areas; 09  (3) coordinate administration of emergency relief, surplus food 10 distribution, or other public assistance programs, except the regular relief and assistance 11 programs of the federal government in rural areas; 12  (4) formulate and conduct a program of construction of basic facilities 13 to improve health, welfare, and economic security and provide employment and income 14 in the rural areas; 15  (5) promote training and educational programs designed to expand 16 employment opportunities for residents of rural areas; 17  (6) enter into agreements with other state agencies and departments to 18 provide for the distribution in rural communities of surplus electrical power from state- 19 owned power sources located in those communities and to expend funds for this purpose; 20  (7) make grants to communities for bulk fuel storage facilities; 21  (8) cooperate with the Department of Environmental Conservation and 22 other agencies to provide technical assistance to communities in the installation, 23 operation, and management of bulk fuel storage facilities. 24  Sec. 44.33.745. Limitations. A program of the department under AS 44.33.740 25 in a rural area may not exceed $100,000 in cost a year. 26  Sec. 44.33.750. Bulk fuel storage facilities grant fund. (a) There is 27 established in the department the bulk fuel storage facilities grant fund. Grants may be 28 made by the department from this fund to a community to acquire and install community 29 bulk storage facilities. 30  (b) Grants made under this section for the acquisition and installation of a bulk 31 fuel storage facility may not exceed $100,000 per community.

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

01 from the land. The municipality may then request the governor to submit a request to 02 the legislature for an appropriation for the amount due the municipality. 03  (f) Title to or an interest in land acquired by the department under this section 04 may not be acquired by adverse possession or prescription. Notwithstanding (a) - (e) 05 of this section, on the dissolution of a municipality under AS 29.06.450 - 29.06.530, 06 unimproved land that was owned by the municipality on the date of its dissolution and 07 received by the municipality from the state under a municipal land grant entitlement 08 program is transferred to the commissioner of natural resources. 09  (g) For the purposes of this section, "municipality" includes only first and 10 second class cities incorporated under the laws of the state. 11  Sec. 44.33.760. Loan information officers. (a) The department may provide 12 itinerant loan information officers to serve persons who reside outside the major 13 population centers of the state. 14  (b) The loan information officers shall be trained, to the extent that the 15 department considers necessary, in a program administered by the department and 16 approved by the Alaska Housing Finance Corporation, the Alaska Industrial 17 Development and Export Authority, and the principal departments of the executive 18 branch that administer loan programs. 19  (c) A majority of the loan information officers shall be persons who are 20 conversant in Alaska Native languages that are spoken by a significant number of Alaska 21 Natives. The department shall provide brochures and other printed materials, written in 22 easily understandable English and in the Alaska Native languages that are spoken by a 23 significant number of Alaska Natives, for distribution by the loan information officers. 24 The brochures and printed materials must explain the purposes of the various state loan 25 programs, the minimum qualifications under the programs, the method for obtaining 26 assistance in the completion of applications for the programs, and other information the 27 department determines will improve the access of persons in rural areas to the state's 28 loan programs. 29  (d) The department shall coordinate its efforts under this section with local 30 financial institutions and community groups to determine the proper itinerary and travel 31 schedule of the loan information officers and to provide adequate notice to persons in

01 rural areas of the itinerary and travel schedule of the loan information officers. 02  (e) The department shall assign the loan information officers to rural areas based 03 on the current and potential future demands for loans in those areas and shall establish 04 offices for the loan information officers in rural areas if the department determines it is 05 necessary to provide familiarity with the area served by the loan information officers and 06 to reduce travel costs. 07  Sec. 44.33.765. Rural development initiative fund. (a) The rural development 08 initiative fund is created in the department. Unless provided otherwise in the 09 appropriation act, an appropriation to the fund is retained in the fund for use under 10 AS 44.33.765 - 44.33.775 and does not lapse at the end of a fiscal year. Each year the 11 commissioner shall request an appropriation to the fund of interest and other income 12 earned on loans or investments of the fund. Money in the fund may be appropriated for 13 costs of administering AS 44.33.765 - 44.33.775. 14  (b) The commissioner may place money from the fund into a special reserve 15 account as necessary. The commissioner may use money in the account to protect the 16 state's security interest in collateral on loans made from the fund, to protect the state's 17 interests in investments made from the fund, or to defray expenses incurred during 18 foreclosure or other legal proceedings involving loans or investments made from the 19 fund. 20  (c) The commissioner may use money from the fund to provide for loan 21 information officers under AS 44.33.760. 22  Sec. 44.33.770. Rural development loans. (a) The department may use money 23 from the rural development initiative fund to make a loan of up to $100,000 to a person, 24 or a loan of up to $200,000 to two or more persons, to be used for working capital, 25 equipment, construction, or other commercial purposes by a business located in a 26 community with a population of 5,000 or less. A person who has received a loan under 27 this subsection may not be granted another loan until after the original loan is entirely 28 repaid. 29  (b) The department shall require collateral for each loan made under this section 30 and shall require that a reasonable amount of money from other nonstate sources be 31 committed for use on any project or enterprise for which money from a loan will be

01 used. The department by regulation may establish other conditions for loans. The 02 department shall by regulation establish rates of interest that are not less than six percent 03 a year and terms of repayment for loans made under this section. 04  Sec. 44.33.775. Disposal of property acquired by default or foreclosure. The 05 department shall dispose of property acquired through default or foreclosure of a loan 06 made from the rural development initiative fund. Disposal shall be made in a manner 07 that serves the best interests of the state, and may include the amortization of payments 08 over a period of years. The commissioner shall request an appropriation to the fund of 09 proceeds from disposal of property under this section. 10  Sec. 44.33.780. Definitions. In AS 44.33.740 - 44.33.780, 11  (1) "commissioner" means the commissioner of commerce and rural 12 development; 13  (2) "department" means the Department of Commerce and Rural 14 Development. 15 Article 7B. Planning Assistance. 16  Sec. 44.33.781. Planning assistance for development and maintenance of 17 district coastal management programs. (a) The department shall conduct a program 18 of research, training, and technical assistance to coastal resource districts necessary for 19 the development and implementation of district coastal management programs under 20 AS 46.40. The technical assistance shall include the direct granting to the coastal 21 resource districts of a portion of any funds received by the state from the federal coastal 22 zone management program, in amounts to be individually determined for each coastal 23 resource district by the commissioner of commerce and rural development. State 24 agencies shall assist the department in carrying out the purposes of this section. 25  Sec. 44.33.782. Planning assistance to platting authorities. To facilitate 26 planning in municipalities that exercise planning and zoning authority, the department 27 may provide planning assistance, including but not limited to surveys, land use studies, 28 urban renewal plans, technical services, model acts that include regulations designed to 29 encourage development and use of energy systems not dependent on oil or gas, and other 30 planning work to a city, borough, or other platting authority. In an area under the 31 jurisdiction, for planning purposes, of a city, borough, or other platting authority, the

01 department may not perform the planning work except at the request or with the consent 02 of the local authority. 03  Sec. 44.33.784. Assistance by cities and platting authorities. A city or 04 platting authority may make funds under its control available to the department for the 05 purposes of obtaining planning work or planning assistance, or both, for its area. The 06 department may contract for, accept, and expend the funds for urban planning for the 07 local jurisdiction. 08  Sec. 44.33.786. Land use planning and state facility procurement plan. The 09 department shall make recommendations to the Department of Transportation and Public 10 Facilities and to appropriate program agencies concerning the effect upon the 11 comprehensive plan or other land use plans or proposals of municipalities and 12 unincorporated communities with respect to the facility procurement plan required to be 13 prepared in accordance with AS 35.10.170. 14  Sec. 44.33.788. Other planning powers. The department may accept and 15 expend grants from the federal government and other public or private sources, may 16 contract with reference to them, and may enter into contracts and exercise all other 17 powers necessary to carry out AS 44.33.781 - 44.33.788. 18  Sec. 44.33.790. Definition. In AS 44.33.782 - 44.33.790, "department" means 19 the Department of Commerce and Rural Development. 20 * Sec. 78. AS 44.33 is amended by adding new sections to read: 21 Article 8A. Local Boundary Commission. 22  Sec. 44.33.810. Local Boundary Commission. There is in the Department of 23 Commerce and Rural Development a Local Boundary Commission. The Local 24 Boundary Commission consists of five members appointed by the governor for 25 overlapping five-year terms. One member shall be appointed from each of the four 26 judicial districts described in AS 22.10.010 and one member shall be appointed from the 27 state at large. The member appointed from the state at large is the chair of the 28 commission. 29  Sec. 44.33.812. Powers and duties. (a) The Local Boundary Commission shall 30  (1) make studies of local government boundary problems; 31  (2) adopt regulations providing standards and procedures for municipal

01 incorporation, annexation, detachment, merger, consolidation, reclassification, and 02 dissolution; 03  (3) consider a local government boundary change requested of it by the 04 legislature, the commissioner of commerce and rural development, or a political 05 subdivision of the state; and 06  (4) develop standards and procedures for the extension of services and 07 ordinances of incorporated cities into contiguous areas for limited purposes upon 08 majority approval of the voters of the contiguous area to be annexed and prepare 09 transition schedules and prorated tax mill levies as well as standards for participation by 10 voters of these contiguous areas in the affairs of the incorporated cities furnishing 11 services. 12  (b) The Local Boundary Commission may 13  (1) conduct meetings and hearings to consider local government 14 boundary changes and other matters related to local government boundary changes, 15 including extensions of services by incorporated cities into contiguous areas and matters 16 related to extension of services; and 17  (2) present to the legislature during the first 10 days of a regular session 18 proposed local government boundary changes, including gradual extension of services 19 of incorporated cities into contiguous areas upon a majority approval of the voters of the 20 contiguous area to be annexed and transition schedules providing for total assimilation 21 of the contiguous area and its full participation in the affairs of the incorporated city 22 within a period not to exceed five years. 23  Sec. 44.33.814. Meetings and hearings. The chair of the commission or the 24 commissioner of commerce and rural development with the consent of the chair may call 25 a meeting or hearing of the Local Boundary Commission. All meetings and hearings 26 shall be public. 27  Sec. 44.33.816. Minutes and records. The Local Boundary Commission shall 28 keep minutes of all meetings and hearings. If the proceedings are transcribed, minutes 29 shall be made from the transcription. The minutes are a public record. All votes taken 30 by the commission shall be entered in the minutes. 31  Sec. 44.33.818. Notice of public hearings. Public notice of a hearing of the

01 Local Boundary Commission shall be given in the area in which the hearing is to be 02 held at least 15 days before the date of the hearing. The notice of the hearing must 03 include the time, date, place, and subject of the hearing. The commissioner of 04 commerce and rural development shall give notice of the hearing at least three times in 05 the press, through other news media, or by posting in a public place, whichever is most 06 feasible. 07  Sec. 44.33.820. Quorum. Three members of the commission constitute a 08 quorum for the conduct of business at a meeting. Two members constitute a quorum 09 for the conduct of business at a hearing. 10  Sec. 44.33.822. Boundary change. A majority of the membership of the Local 11 Boundary Commission must vote in favor of a proposed boundary change before it may 12 be presented to the legislature. 13  Sec. 44.33.824. Expenses. Members of the Local Boundary Commission 14 receive no pay but are entitled to the travel expenses and per diem authorized for 15 members of boards and commissions under AS 39.20.180. 16  Sec. 44.33.826. Hearings on boundary changes. A local government boundary 17 change may not be proposed to the legislature unless a hearing on the change has been 18 held in or in the near vicinity of the area affected by the change. 19  Sec. 44.33.828. When boundary change takes effect. When a local 20 government boundary change is proposed to the legislature during the first 10 days of 21 any regular session, the change becomes effective 45 days after presentation or at the 22 end of the session, whichever is earlier, unless disapproved by a resolution concurred 23 in by a majority of the members of each house. 24 Article 8B. Borough Feasibility Studies. 25  Sec. 44.33.840. Borough feasibility studies. The commissioner may contract 26 for studies of the feasibility of establishing boroughs in the unorganized borough. A 27 study may be conducted under this section only if 28  (1) appropriations are available for that purpose; and 29  (2) the study is requested by a person residing in the area to be studied 30 or by a city located in the area to be studied. 31  Sec. 44.33.842. Requests for studies. A request for a study of the feasibility

01 of establishing a borough in the unorganized borough shall be submitted to the 02 commissioner in writing and must include 03  (1) a description of the boundaries of the area of the proposed study; and 04  (2) an indication of local interest in the proposed study consisting of 05 either 06  (A) a petition requesting the study containing the signatures and 07 addresses of five percent of the voters residing in the area of the proposed study 08 based on the number of voters who voted in the area in the last statewide 09 election; or 10  (B) resolutions requesting the study adopted by the governing 11 bodies of at least five percent of the cities within the area of the proposed study. 12  Sec. 44.33.844. Boundaries. The boundaries of an area studied shall conform 13 to the boundaries indicated in the request for the study under AS 44.33.842 unless the 14 commissioner, after a public hearing held in the area of the proposed study, determines 15 that the boundaries should be altered. In determining the boundaries of an area to be 16 studied, the commissioner shall consider 17  (1) the standards applicable to the incorporation of boroughs under 18 AS 29.05.031; 19  (2) boundaries of regional corporations established under 43 U.S.C. 1606; 20  (3) census divisions of the state used for the 1980 census; 21  (4) boundaries of the regional educational attendance areas established 22 under AS 14.08.031; and 23  (5) boundaries of coastal resource service areas organized under 24 AS 46.40.110 - 46.40.210. 25  Sec. 44.33.846. Contracts. (a) The commissioner shall contract for a study of 26 the feasibility of establishing a borough in the unorganized borough by following the 27 procedures under AS 36.30 (State Procurement Code). The commissioner shall include 28 terms in the contract that provide for 29  (1) public participation in the preparation of the study; 30  (2) completion of the study not later than June 30 of the third year after 31 the year the contract is executed.

01  (b) A study under this section must include 02  (1) a recommendation for or against incorporation of a borough 03 containing all or part of the area studied; 04  (2) an evaluation of the economic development potential of the area 05 studied; 06  (3) an evaluation of capital facility needs of the area studied; 07  (4) an evaluation of demographic, social, and environmental factors 08 affecting the area studied; 09  (5) an evaluation of the relationships among regional educational 10 attendance areas, coastal resource service areas, and other regional entities responsible 11 for providing services in the area studied; 12  (6) an evaluation of the relationships between the existing cities within 13 the area studied and regional entities responsible for providing services in the area; and 14  (7) specific recommendations for 15  (A) organization of a home rule or general law borough 16 government if one is recommended; 17  (B) changes in organization of cities in the area studied; or 18  (C) the improvement of the delivery of services to the public by 19 the state in the area studied. 20  Sec. 44.33.849. Definition. In AS 44.33.840 - 44.33.849, "commissioner" 21 means the commissioner of commerce and rural development. 22 Article 8C. Alaska Regional Economic Assistance Program. 23  Sec. 44.33.895. Alaska regional economic assistance program. (a) The 24 department shall 25  (1) encourage the formation of regional development organizations by 26 providing assistance in forming organizations to interested individuals, including 27 information on how to qualify and apply for regional development grants and federal 28 funding under 42 U.S.C. 3121 - 3246 (Public Works and Economic Development Act 29 of 1965), as amended; 30  (2) assist an interested individual in establishing boundaries for a 31 proposed organization to ensure that the region

01  (A) is of sufficient geographic size and contains a large enough 02 population to form an economically viable unit with shared interests, resources, 03 traditions, and goals; 04  (B) contains at least one municipality that serves as a regional 05 center; and 06  (C) contains the entire area of each municipality included in the 07 region; 08  (3) gather information about regional economic issues, international 09 trade, and tourism from organizations; 10  (4) serve as liaison between organizations and other state agencies and 11 encourage other agencies to make resources available to help accomplish goals of the 12 organizations; 13  (5) assist each organization to 14  (A) provide services designed to encourage economic 15 development to local communities and businesses; 16  (B) collect and distribute economic information relevant to the 17 region; 18  (C) participate in state marketing campaigns and join state trade 19 missions that are relevant to the region; and 20  (D) develop and implement strategies to attract new industry, 21 expand international trade opportunities, and encourage tourism within the 22 region. 23  (b) Subject to (c) of this section, the department may make regional 24 development grants to organizations for projects the department determines will be of 25 value in encouraging economic development. During a fiscal year, the department may 26 make no more than 15 grants and may only make grants to one organization from a 27 particular region. An organization that is designated an economic development district 28 under 42 U.S.C. 3171 qualifies for grants under this subsection. The department shall 29 by regulation adopt procedures for applying for regional development grants, including 30 application deadlines. The department may by regulation establish additional grant 31 eligibility requirements.

01  (c) To qualify for a grant, a regional development organization must match the 02 grant by providing an amount of money from nonstate sources. The department shall 03 establish by regulation a formula that determines the amount of the match required under 04 this subsection based on the capability of each organization to generate money from 05 nonstate sources. The amount of match required may not exceed the amount of grant 06 money and may not be less than 20 percent of the grant. The total amount of grant 07 money provided to an organization during a fiscal year may not exceed $100,000. 08  (d) There is established in the department the regional development fund 09 consisting of appropriations to the fund. Money from the fund may be used only for 10 regional development grants. 11  (e) In this section, 12  (1) "department" means the Department of Commerce and Rural 13 Development; 14  (2) "regional development organization" or "organization" means a 15 nonprofit organization or nonprofit corporation formed to encourage economic 16 development within a particular region of the state that includes the entire area of each 17 municipality within that region and that has a board of directors that represents the 18 region's economic, political, and social interests. 19 * Sec. 79. AS 44.85.030 is amended to read: 20  Sec. 44.85.030. Membership and vacancies. The bond bank authority consists 21 of the following five directors: the commissioner of revenue, the commissioner of 22 commerce and rural development [COMMUNITY AND REGIONAL AFFAIRS], who 23 shall each be a director ex officio with voting privileges, and three directors appointed 24 by the governor. The appointment of each director other than the commissioner of 25 revenue and the commissioner of commerce and rural development [COMMUNITY 26 AND REGIONAL AFFAIRS] is subject to confirmation by the legislature. The three 27 directors appointed by the governor serve at the governor's pleasure for four-year terms. 28 They must be residents of the state and qualified voters at the time of appointment and 29 shall comply with the requirements of AS 39.50 (conflict of interest). Each director 30 shall hold office for the term of appointment and until a successor has been appointed 31 and qualified. A director is eligible for reappointment. A vacancy in a directorship

01 occurring other than by expiration of term shall be filled in the same manner as the 02 original appointment but for the unexpired term only. Each director before entering 03 upon the duties of office shall take and subscribe to an oath to perform the duties 04 faithfully, impartially, and justly to the best of the director's ability. A record of the 05 oath shall be filed in the office of the governor. 06 * Sec. 80. AS 44.85.320(b) is amended to read: 07  (b) Before declaring the principal of notes or bonds due and payable, the trustee 08 must first give 30 days' notice in writing to the governor, the bond bank authority, the 09 commissioner of commerce and rural development [COMMUNITY AND REGIONAL 10 AFFAIRS], and the attorney general of the state. 11 * Sec. 81. AS 46.03.900(33) is amended to read: 12  (33) "village" means a place within the unorganized borough or within 13 a borough as to a power, function, or service that is not exercised or provided by the 14 borough on an areawide or nonareawide basis that 15  (A) has irrevocably waived, in a form approved by the 16 Department of Law, any claim of sovereign immunity that might arise under this 17 chapter; and 18  (B) has 19  (i) a council organized under 25 U.S.C. 476 (sec. 16 of 20 the Indian Reorganization Act); 21  (ii) a traditional village council recognized by the United 22 States as eligible for federal aid to Indians; or 23  (iii) a council recognized by the commissioner of 24 commerce and rural development [COMMUNITY AND REGIONAL 25 AFFAIRS] under regulations adopted by the Department of Commerce 26 and Rural Development [COMMUNITY AND REGIONAL AFFAIRS] 27 to determine and give official recognition of village entities under 28 AS 44.33.755(b) [AS 44.47.150(b)]; 29 * Sec. 82. AS 46.04.900(22) is amended to read: 30  (22) "village" means a place within the unorganized borough or within 31 a borough as to a power, function, or service that is not exercised or provided by the

01 borough on an areawide or nonareawide basis that 02  (A) has irrevocably waived, in a form approved by the 03 Department of Law, any claim of sovereign immunity that might arise under this 04 chapter; and 05  (B) has 06  (i) a council organized under 25 U.S.C. 476 (sec. 16 of 07 the Indian Reorganization Act); 08  (ii) a traditional village council recognized by the United 09 States as eligible for federal aid to Indians; or 10  (iii) a council recognized by the commissioner of 11 commerce and rural development [COMMUNITY AND REGIONAL 12 AFFAIRS] under regulations adopted by the Department of Commerce 13 and Rural Development [COMMUNITY AND REGIONAL AFFAIRS] 14 to determine and give official recognition of village entities under 15 AS 44.33.755(b) [AS 44.47.150(b)]; 16 * Sec. 83. AS 46.08.040(a) is amended to read: 17  (a) In addition to money in the response account of the fund that is transferred 18 to the commissioner of commerce and rural development [COMMUNITY AND 19 REGIONAL AFFAIRS] to make grants under AS 29.60.510 and to pay for impact 20 assessments under AS 29.60.560, the commissioner of environmental conservation may 21 use money 22  (1) from the response account in the fund 23  (A) when authorized by AS 46.08.045, to investigate and evaluate 24 the release or threatened release of oil or a hazardous substance, and contain, 25 clean up, and take other necessary action, such as monitoring and assessing, to 26 address a release or threatened release of oil or a hazardous substance that poses 27 an imminent and substantial threat to the public health or welfare, or to the 28 environment; 29  (B) to provide matching funds in the event of a release of oil or 30 a hazardous substance for which use of the response account is authorized by 31 AS 46.08.045 for participation

01  (i) in federal oil discharge cleanup activities; and 02  (ii) under 42 U.S.C. 9601 - 9657 (Comprehensive 03 Environmental Response, Compensation, and Liability Act of 1980); and 04  (C) to recover the costs to the state, a municipality, a village, or 05 a school district of a containment and cleanup resulting from the release or the 06 threatened release of oil or a hazardous substance for which money was 07 expended from the response account; 08  (2) from the prevention account in the fund to 09  (A) investigate and evaluate the release or threatened release of 10 oil or a hazardous substance, except a release described in AS 46.08.045(a), and 11 contain, clean up, and take other necessary action, such as monitoring and 12 assessing, to address a release or threatened release of oil or a hazardous 13 substance, except a release described in AS 46.08.045(a); 14  (B) pay all costs incurred 15  (i) to establish and maintain the oil and hazardous 16 substance response office; 17  (ii) under agreements entered into under AS 46.04.090 or 18 AS 46.09.040; 19  (iii) to review oil discharge prevention and contingency 20 plans submitted under AS 46.04.030; 21  (iv) to conduct training, response exercises, inspections, 22 and tests, in order to verify equipment inventories and ability to prevent 23 and respond to oil and hazardous substance release emergencies, and to 24 undertake other activities intended to verify or establish the preparedness 25 of the state, a municipality, or a party required by AS 46.04.030 to have 26 an approved contingency plan to act in accordance with that plan; and 27  (v) to verify or establish proof of financial responsibility 28 required by AS 46.04.040; 29  (C) pay, when presented with appropriate documentation by the 30 Department of Military and Veterans' Affairs, the expenses incurred by the 31 Department of Military and Veterans' Affairs for Alaska State Emergency

01 Response Commission activities, including staff support, when the activities and 02 staff support relate to oil or hazardous substances, and for the costs of being 03 prepared for responding to a request by the department for support in response 04 and restoration, but not including the costs of maintaining the response corps and 05 the emergency response depots under AS 26.23.045; 06  (D) pay all costs incurred to acquire, repair, or improve an asset 07 having an anticipated life of more than one year and that is acquired, repaired, 08 or improved as a preparedness measure by which the state may respond to, 09 recover from, reduce, or eliminate the effects of a release or threatened release 10 of oil or a hazardous substance; 11  (E) pay the costs, if approved by the commissioner, that were 12 incurred by local emergency planning committees to carry out the duties assigned 13 them by AS 46.13.080; 14  (F) provide matching funds in the event of the release of oil or 15 a hazardous substance, except a release of oil for the containment and cleanup 16 of which use of the response account is authorized by AS 46.08.045, for 17 participation 18  (i) in federal oil discharge cleanup activities; and 19  (ii) under 42 U.S.C. 9601 - 9657 (Comprehensive 20 Environmental Response, Compensation, and Liability Act of 1980); 21  (G) pay or reimburse the storage tank assistance fund established 22 in AS 46.03.410 for expenditures from that fund authorized by AS 46.03.410(b); 23  (H) transfer to the Department of Commerce and Rural 24 Development [COMMUNITY AND REGIONAL AFFAIRS] for payment by the 25 commissioner of commerce and rural development [COMMUNITY AND 26 REGIONAL AFFAIRS] of 27  (i) municipal impact grants when authorized under 28 AS 29.60.510(b)(2); 29  (ii) assessments of the social and economic effects of the 30 release of oil or hazardous substances as required by AS 29.60.560 when, 31 in the judgment of the commissioner, the release of oil or a hazardous

01 substance is not one that is described in AS 46.08.045; and 02  (iii) grants to repair, improve, or replace fuel storage 03 facilities under the bulk fuel system emergency repair and upgrade 04 program; 05  (I) recover the costs to the state, a municipality, a village, or a 06 school district of a containment and cleanup resulting from the release or 07 threatened release of oil or a hazardous substance for which money was 08 expended from the prevention account; 09  (J) prepare, review, and revise 10  (i) the state's master oil and hazardous substance 11 discharge prevention and contingency plan required by AS 46.04.200; 12 and 13  (ii) a regional master oil and hazardous substance 14 discharge prevention and contingency plan required by AS 46.04.210; 15 and 16  (K) restore the environment by addressing the effects of an oil 17 or hazardous substance release. 18 * Sec. 84. AS 46.08.900(16) is amended to read: 19  (16) "village" means a place within the unorganized borough or within 20 a borough if the power, function, or service for which a grant application under 21 AS 29.60.510 is submitted is not exercised or provided by the borough on an areawide 22 or nonareawide basis at the time the grant application is submitted that 23  (A) has irrevocably waived, in a form approved by the 24 Department of Law, any claim of sovereign immunity that might arise in 25 connection with the use of grant money under this chapter; and 26  (B) has 27  (i) a council organized under 25 U.S.C. 476 (sec. 16 of 28 the Indian Reorganization Act); 29  (ii) a traditional village council recognized by the United 30 States as eligible for federal aid to Indians; or 31  (iii) a council recognized by the commissioner of

01 commerce and rural development [COMMUNITY AND REGIONAL 02 AFFAIRS] under regulations adopted by the Department of Commerce 03 and Rural Development [COMMUNITY AND REGIONAL AFFAIRS] 04 to determine and give official recognition of village entities under 05 AS 44.33.755(b) [AS 44.47.150(b)]. 06 * Sec. 85. AS 46.40.120(b) is amended to read: 07  (b) The commissioner of commerce and rural development [THE 08 DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS] may, after public 09 hearings held in the area affected, consolidate two or more regional educational 10 attendance areas as a single coastal resource service area 11  (1) if a substantial portion of the coastal area contains land and water 12 area owned by the federal government over which it exercises exclusive jurisdiction or 13 land held in trust by the federal government for Alaska Natives over which the state 14 would not exercise control as to use; or 15  (2) if, after giving due consideration to the standards applicable to 16 incorporation of borough governments and the likelihood that a borough will be 17 incorporated within the area, the commissioner determines that the functions to be 18 performed under this chapter could be undertaken more efficiently through the 19 combination of two or more regional educational attendance areas as a single coastal 20 resource service area. 21 * Sec. 86. AS 46.40.120(d) is amended to read: 22  (d) For purposes of coastal zone management only, the commissioner of 23 commerce and rural development [COMMUNITY AND REGIONAL AFFAIRS] may, 24 after public hearings held in the regional educational attendance area affected, divide an 25 existing regional educational attendance area into no more than three coastal resource 26 service areas according to geographic, cultural, economic, environmental, or other 27 features relevant to coastal management planning. However , 28  (1) each coastal resource service area formed by dividing an existing 29 regional educational attendance area must contain at least one first class city or home 30 rule city; 31  (2) a city within a coastal resource service area formed by dividing an

01 existing regional educational attendance area may not elect to exclude itself from the 02 coastal resource service area; and 03  (3) a coastal resource service area formed before June 1, 1980, may not 04 be divided for coastal management planning purposes. 05 * Sec. 87. AS 46.40.140(c) is amended to read: 06  (c) The commissioner of commerce and rural development [COMMUNITY 07 AND REGIONAL AFFAIRS], after consultation with residents of a coastal resource 08 service area, may divide a service area into sections only for the purpose of nominating 09 and electing board members. Division of a service area into sections for the purpose of 10 nomination and election shall be in accordance with the provisions of AS 14.08.051(a). 11 Division may be proposed in the petition submitted under AS 46.40.130(a)(1), in the 12 resolution submitted under AS 46.40.130(a)(2), at the direction of the council under 13 AS 46.40.130(a)(3), or may be proposed at any time by the members of the coastal 14 resource service area board. If proposed by the board, the division of the service area 15 into sections is subject to approval of a majority of the qualified voters voting on the 16 question in the coastal resource service area at the next regular election or at a special 17 election called for that purpose and, if approved, takes effect at the next regular election 18 of members of the coastal resource service area board. 19 * Sec. 88. AS 46.40.170(a) is amended to read: 20  (a) If residents of a coastal resource service area reject organization of the 21 service area at an election called for the purpose and the council finds, after public 22 hearing, that major economic development activity has occurred or will occur within the 23 service area, the council may direct the Department of Commerce and Rural 24 Development [COMMUNITY AND REGIONAL AFFAIRS] to prepare and recommend 25 for consideration by the council and for submission to the legislature a district coastal 26 management program for the service area. 27 * Sec. 89. AS 46.40.170(b) is amended to read: 28  (b) At the request of the council, the Department of Commerce and Rural 29 Development [COMMUNITY AND REGIONAL AFFAIRS] shall complete the district 30 coastal management program in accordance with this chapter and the guidelines and 31 standards adopted by the council for a coastal resource service area that [WHICH] has

01 been organized but that [WHICH] has failed to make substantial progress in the 02 preparation of an approvable district coastal management program within 18 months of 03 certification of the results of an organization election or that [WHICH] has not 04 submitted for approval to the council a program within 30 months of certification of the 05 results of its organization election. Preparation of the program shall be conducted in 06 consultation with the coastal resource service area and shall, to the maximum extent 07 consistent with this chapter, reflect the expressed concerns of the residents of the service 08 area. 09 * Sec. 90. AS 46.40.180(a) is amended to read: 10  (a) Before adoption by a coastal resource service area board, or by the 11 Department of Commerce and Rural Development [COMMUNITY AND REGIONAL 12 AFFAIRS] under AS 46.40.170, a district coastal management program shall be 13 submitted for review to each city or village within the coastal resource service area. The 14 council of a city or traditional village council shall consider the program submitted for 15 review. Within 60 days of submission, the council of a city or traditional village council 16 shall either approve the program or enter objections to all or any portion of the program. 17 * Sec. 91. AS 46.40.180(d) is amended to read: 18  (d) For purposes of this section, "village" means an unincorporated community 19 where at least 25 persons reside as a social unit as determined by the Department of 20 Commerce and Rural Development [COMMUNITY AND REGIONAL AFFAIRS]. 21 * Sec. 92. AS 46.40.190(a) is amended to read: 22  (a) A city within the coastal area that [WHICH] is not part of a coastal resource 23 service area shall be included for purposes of this chapter within an adjacent coastal 24 resource service area unless its governing body, by resolution adopted by a majority of 25 its membership, chooses to exclude the city from an adjacent coastal resource service 26 area and a copy of the resolution is filed with the commissioner of commerce and rural 27 development [COMMUNITY AND REGIONAL AFFAIRS]. 28 * Sec. 93. AS 46.40.210(2) is amended to read: 29  (2) "coastal resource district" means each of the following that 30 [WHICH] contains a portion of the coastal area of the state: 31  (A) unified municipalities;

01  (B) organized boroughs of any class that [WHICH] exercise 02 planning and zoning authority; 03  (C) home rule and first class cities of the unorganized borough 04 or within boroughs that [WHICH] do not exercise planning and zoning 05 authority; 06  (D) second class cities of the unorganized borough, or within 07 boroughs that [WHICH] do not exercise planning and zoning authority, that 08 [WHICH] have established a planning commission, and that [WHICH], in the 09 opinion of the commissioner of commerce and rural development 10 [COMMUNITY AND REGIONAL AFFAIRS], have the capability of preparing 11 and implementing a comprehensive district coastal management program under 12 AS 46.40.030; 13  (E) coastal resource service areas established and organized under 14 AS 29.03.020 and AS 46.40.110 - 46.40.180; 15 * Sec. 94. AS 46.40.210(5) is amended to read: 16  (5) "department" means the Department of Commerce and Rural 17 Development [COMMUNITY AND REGIONAL AFFAIRS]; 18 * Sec. 95. AS 47.05.030(a) is amended to read: 19  (a) Except as provided in (b) of this section and for purposes directly connected 20 with the administration of general assistance, adult public assistance, the day care 21 assistance program authorized under AS 44.29.300 - 44.29.339 [AS 44.47.250 - 22 44.47.310], or the Alaska temporary assistance program, and in accordance with the 23 regulations of the department, a person may not solicit, disclose, receive, make use of, 24 or authorize, knowingly permit, participate in, or acquiesce in the use of, a list of or 25 names of, or information concerning, persons applying for or receiving the assistance 26 directly or indirectly derived from the records, papers, files, or communications of the 27 department or subdivisions or agencies of the department, or acquired in the course of 28 the performance of official duties. 29 * Sec. 96. AS 47.18.010(c) is amended to read: 30  (c) The Department of Education, the Department of Commerce and Rural 31 Development [COMMUNITY AND REGIONAL AFFAIRS], and the Department of

01 Labor shall assist the department in developing the plan required under (a) of this 02 section. In addition, through appropriate means, the department shall solicit advice from 03 teens, parents, educators, school administrators, taxpayers, civic groups, community 04 organizations, Native organizations, officials of local governments, religious institutions, 05 and other concerned persons about how state programs can be coordinated and operated 06 in a manner that will enhance their effectiveness and efficiency in addressing the many 07 needs associated with adolescent parenting, the prevention of adolescent pregnancies, and 08 the provision of adolescent peer counseling. 09 * Sec. 97. AS 47.27.060 is amended to read: 10  Sec. 47.27.060. Job development. The department may establish cooperative 11 agreements with the Department of Labor, [DEPARTMENT OF COMMUNITY AND 12 REGIONAL AFFAIRS,] Department of Education, and Department of Commerce 13 [COMMUNITY] and Rural [ECONOMIC] Development, and with other public or 14 private sector organizations for the purpose of developing job, training, and educational 15 opportunities for families eligible for assistance under this chapter. 16 * Sec. 98. AS 47.27.900(2) is amended to read: 17  (2) "child care assistance" means payments made by the Department of 18 Health and Social Services [OR THE DEPARTMENT OF COMMUNITY AND 19 REGIONAL AFFAIRS] to Alaska temporary assistance program participant families or 20 to providers for the care of children of the participant families; 21 * Sec. 99. AS 47.80.090 is amended to read: 22  Sec. 47.80.090. Responsibilities. The council shall 23  (1) serve as a forum by which issues and benefits regarding current and 24 potential services to disabled and gifted persons may be discussed by consumer, public, 25 private, professional, and lay interests; 26  (2) advocate the needs of disabled and gifted persons before the 27 executive and legislative branches of the state government and before the public; 28  (3) advise the executive and legislative branches of the state government 29 and the private sector on programs and policies pertaining to current and potential 30 services to disabled or gifted persons and their families; 31  (4) submit periodic reports to the commissioner of health and social

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

01 imposed by state or federal confidentiality or privacy laws; 02  (11) perform other duties required under applicable federal laws or 03 AS 14.30.231 and as the governor may assign; [AND] 04  (12) govern the special education service agency and may hire personnel 05 necessary to operate the agency ; and [.] 06  (13) provide to the Alaska Mental Health Trust Authority for its review 07 and consideration recommendations concerning the integrated comprehensive mental 08 health program for the people of the state who are described in AS 47.30.056(b)(2) and 09 the use of the money in the mental health trust income account in a manner consistent 10 with regulations adopted under AS 47.30.031. 11 * Sec. 100. AS 47.90.040 is amended to read: 12  Sec. 47.90.040. Consultation and coordination. The commissioner shall 13 consult and cooperate with the Department of Health and Social Services; the 14 Department of Education, including the division of vocational rehabilitation; the 15 University of Alaska, community colleges , and other colleges as appropriate; [THE 16 DEPARTMENT OF LABOR, INCLUDING THE DIVISION OF EMPLOYMENT 17 SECURITY;] and other persons or agencies that the commissioner considers appropriate 18 in the implementation of this chapter. 19 * Sec. 101. AS 47.90.070(1) is amended to read: 20  (1) "commissioner" means the commissioner of labor [COMMUNITY 21 AND REGIONAL AFFAIRS]; 22 * Sec. 102. REPEALER. AS 39.25.120(c)(21); AS 44.17.005(17); AS 44.33.240, 44.33.242, 23 44.33.245, 44.33.255, 44.33.260, 44.33.270, 44.33.272, 44.33.275, 44.33.800; and AS 44.47 are 24 repealed. 25 * Sec. 103. REPEALER. AS 44.33.895, added by sec. 78 of this Act, is repealed July 1, 26 2000. 27 * Sec. 104. TRANSITIONAL PROVISIONS. (a) Litigation, hearings, investigations, and 28 other proceedings pending under a law repealed or amended by this Act, or in connection with 29 functions transferred by this Act, continue in effect and may be completed notwithstanding a 30 transfer or repeal provided for in this Act. 31 (b) Regulations in effect on June 30, 1999, that were adopted to implement a function

01 that is transferred by this Act remain in effect and shall be enforced by the agency to which the 02 function is transferred under this Act until amended by the agency to which the function is 03 transferred. 04 (c) Wherever in Alaska Statutes affected by this Act there is a reference to regulations 05 adopted under a section of law and there are no regulations adopted under that section because 06 previous regulations adopted under another section are being enforced under (b) of this section, 07 the reference shall be construed to refer to the previously adopted regulations until they are 08 amended by the new agency. 09 (d) Contracts, rights, liabilities, and obligations created by or under a law repealed or 10 amended by this Act, and in effect on June 30, 1999, remain in effect notwithstanding this Act's 11 taking effect. 12 (e) Records, equipment, appropriations, and other property of an agency of the state 13 whose functions are transferred under this Act shall be transferred to implement the provisions 14 of this Act. 15 * Sec. 105. DIVISION OF TOURISM CONVERTED TO OFFICE. The duties of the 16 division of tourism, Department of Commerce and Economic Development, and the duties of 17 the director of that division, are transferred, respectively, to the office of tourism, in the 18 Department of Commerce and Rural Development, and to the manager of that office. This 19 section applies to duties existing on June 30, 1999, and to duties that are created after 20 June 30, 1999, under legislation passed during the Twenty-First Alaska State Legislature that 21 becomes law. 22 * Sec. 106. REVISOR'S INSTRUCTION. (a) Wherever in the Alaska Statutes and the 23 Alaska Administrative Code the terms "Department of Commerce and Economic Development" 24 and "commissioner of commerce and economic development" are used, they shall be read, 25 respectively, as "Department of Commerce and Rural Development" and "commissioner of 26 commerce and rural development" when to do so would be consistent with the changes made 27 by this Act. 28 (b) Wherever in the Alaska Statutes and the Alaska Administrative Code the terms 29 "division of tourism" and "director of tourism" are used, they shall be read, respectively, as 30 "office of tourism" and "manager of tourism" when to do so would be consistent with sec. 105 31 of this Act.

01 (c) Wherever in the Alaska Statutes and the Alaska Administrative Code the terms 02 "division of international trade" and "director of international trade" are used, they shall be read, 03 respectively, as "office of international trade" and "manager of international trade" when to do 04 so would be consistent with secs. 67 and 102 of this Act. 05 (d) Under AS 01.05.031, the revisor of statutes shall implement this section in the 06 statutes and, under AS 44.62.125(b)(6), the regulations attorney shall implement this section in 07 the administrative code. 08 * Sec. 107. This Act takes effect July 1, 1999.