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HCS CSSB 203(JUD): "An Act relating to administrative hearings, to hearing officers, and to administrative law judges; establishing the office of administrative hearings and relating to that office; and providing for an effective date."

00 HOUSE CS FOR CS FOR SENATE BILL NO. 203(JUD) 01 "An Act relating to administrative hearings, to hearing officers, and to administrative 02 law judges; establishing the office of administrative hearings and relating to that office; 03 and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 06 to read: 07 PURPOSE AND INTENT. The purpose of this Act is to increase the separation 08 between the adjudicatory functions of executive branch agencies and the agencies' 09 investigatory, prosecutory, and policy-making functions. The legislature intends by this Act 10 to 11 (1) provide for the delivery of high quality adjudication services in a timely, 12 efficient, and cost-effective manner; 13 (2) ensure respect for the privacy and dignity of the individuals whose cases 14 are being adjudicated and protect them from threats, intimidation, and harassment;

01 (3) foster open and clearly explained agency decisions and improve public 02 access to the process of administrative adjudication; 03 (4) guarantee protection of all parties' due process rights, increase the public 04 parties' perception of fairness in administrative adjudication, and foster acceptance of final 05 administrative decisions by the public and affected parties; 06 (5) protect the integrity of the process of administrative adjudication and 07 decisional independence of administrative adjudicators; and 08 (6) increase consistency in administrative procedures and decisions. 09 * Sec. 2. AS 44 is amended by adding a new chapter to read: 10 Chapter 64. Hearing Officers and Office of Administrative Hearings. 11 Sec. 44.64.010. Office created. (a) There is created in the Department of 12 Administration an independent office of administrative hearings under the direction of 13 the chief administrative law judge. 14 (b) The chief administrative law judge must 15 (1) be a resident of the state; 16 (2) have experience in administrative law; 17 (3) be licensed to practice law in this state and have been admitted to 18 practice law in this state for at least five years; and 19 (4) have experience representing clients in administrative or judicial 20 proceedings. 21 (c) The chief administrative law judge is appointed to a five-year term of 22 office by the governor and is subject to confirmation by the legislature. An individual 23 may serve not more than three full or partial terms as chief administrative law judge. 24 The governor may remove the chief administrative law judge from office only for 25 good cause. The basis for removal shall be stated in writing. A vacancy in the office 26 of chief administrative law judge shall be filled by the governor and the individual 27 appointed serves for the remainder of the term to which appointed. 28 (d) The chief administrative law judge shall receive a monthly salary that is 29 not less than Step A nor more than Step F, Range 27, of the salary schedule in 30 AS 39.27.011(a) for Juneau, Alaska. The chief administrative law judge is in the 31 partially exempt service.

01 Sec. 44.64.020. Powers and duties of chief administrative law judge. The 02 chief administrative law judge shall 03 (1) supervise the office; 04 (2) employ administrative staff, who shall be in the classified service; 05 (3) employ administrative law judges, who shall be in the partially 06 exempt service; 07 (4) preside over administrative hearings handled by the office or, based 08 upon the qualifications and expertise of the administrative law judges, assign 09 administrative law judges to preside over hearings, and protect, support, and enhance 10 the decisional independence of the administrative law judges; 11 (5) establish and implement performance standards, including 12 provision for timeliness, and peer review programs for administrative law judges 13 employed or retained by the office; 14 (6) make available and facilitate training and continuing education 15 programs and services in administrative procedure, administrative adjudication, 16 substantive law, alternate dispute resolution, and technical matters for administrative 17 law judges and other administrative adjudicators; 18 (7) survey administrative hearing participants and use other methods to 19 monitor the quality of administrative hearings held by the office and other state 20 agencies, and submit to the governor and the legislature on January 31 of each year the 21 results of the survey along with a report that includes a description of the activities of 22 the office and recommendations for statutory changes that may be needed in relation 23 to the administrative hearings held by the office or other state agencies; 24 (8) review and comment on regulations proposed by state agencies to 25 govern procedures in administrative hearings; 26 (9) enter into contracts as necessary to carry out the functions of the 27 office; 28 (10) annually prepare and submit to the commissioner of 29 administration a budget for the office for the next fiscal year that shall include and 30 separately identify funding for training and continuing education; a copy of the budget 31 submitted to the commissioner under this paragraph shall also be submitted to the

01 Finance Committee of each house of the legislature; and 02 (11) after consulting with affected agencies, adopt regulations under 03 AS 44.62 (Administrative Procedure Act) to carry out the duties of the office and 04 implement this chapter. 05 * Sec. 3. AS 44.64 is amended by adding new sections to read: 06 Sec. 44.64.030. Jurisdiction of the office. (a) The office shall conduct all 07 adjudicative administrative hearings required under the following statutes or under 08 regulations adopted to implement the statutes: 09 (1) AS 04.11.510(b)(1) and (c) (alcoholic beverages license); 10 (2) AS 05.15 (charitable gaming); 11 (3) AS 05.20 (recreational devices); 12 (4) AS 05.90.001 (special racing events); 13 (5) AS 06 (banks and financial institutions); 14 (6) AS 08 (occupational licensing), other than AS 08.08 and 15 AS 08.62.046; 16 (7) AS 10.06 (Alaska Corporations Code); 17 (8) AS 10.13 (Alaska BIDCO Act); 18 (9) AS 10.25.375 (Electric and Telephone Cooperative Act); 19 (10) AS 10.50.408 (limited liability companies); 20 (11) AS 14.11.016 (education-related facility grants); 21 (12) AS 14.18 (discrimination in public education); 22 (13) AS 14.20.030 (teacher certificates); 23 (14) AS 14.48 (postsecondary educational institutions); 24 (15) AS 17.20 (Alaska Food, Drug, and Cosmetic Act), other than 25 AS 17.20.060 and 17.20.360; 26 (16) AS 18.18.030 (hospice licenses); 27 (17) AS 18.20 (hospitals and nursing facilities), other than 28 AS 18.20.180; 29 (18) AS 18.35.040 (tourist accommodations); 30 (19) AS 21.09, AS 21.22.190, AS 21.27, AS 21.34, AS 21.36, 31 AS 21.69, AS 21.86.200, AS 21.87, and AS 21.89 (insurance);

01 (20) AS 25.27 (child support enforcement); 02 (21) AS 32.06 (Uniform Partnership Act); 03 (22) AS 34.45 (unclaimed property); 04 (23) AS 34.55.024 and 34.55.026 (Uniform Land Sales Practices Act); 05 (24) AS 36.30 (State Procurement Code), other than 06 AS 36.30.627(a)(2); 07 (25) AS 38.05.065 (contracts for sale of state land); 08 (26) AS 39.52 (Alaska Executive Branch Ethics Act); 09 (27) AS 43.23 (permanent fund dividends); 10 (28) AS 43.70 (Alaska Business License Act); 11 (29) AS 44.50 (notaries public); 12 (30) AS 44.77 (claims against the state); 13 (31) AS 45.30.040 (mobile homes); 14 (32) AS 45.55 (Alaska Securities Act); 15 (33) AS 45.57 (Takeover Bid Disclosure Act); 16 (34) AS 47.33 (assisted living homes); 17 (35) AS 47.35 (child care); 18 (36) AS 47.45 (longevity bonuses). 19 (b) An agency may request the office to conduct an administrative hearing or 20 other proceeding of that agency or to conduct several administrative hearings or other 21 proceedings under statutes not listed in (a) of this section. The office may provide the 22 service after entering into a written agreement with the agency describing the services 23 to be provided and providing for reimbursement by the agency to the office of the 24 costs incurred by the office in providing the services. 25 (c) To the extent otherwise permitted by law, the agency may delegate to the 26 administrative law judge assigned to conduct the hearing on behalf of the agency the 27 authority to make a final agency decision in the matter. The final decision may be 28 appealed to the superior court by any party. 29 (d) Nothing in this chapter may be construed to create a right to a hearing or to 30 require a hearing that is not required under other law. 31 Sec. 44.64.040. Administrative law judges. (a) An administrative law judge

01 must be admitted to practice law in this state and must have been admitted to practice 02 in this state for at least two years before being employed or retained with the office. 03 The chief administrative law judge shall establish additional qualifications for 04 administrative law judges employed or retained by the office and for those 05 administrative law judges that may be assigned to particular types of cases. 06 Notwithstanding AS 39.25.120(b), full-time administrative law judges employed by 07 the office are subject to the personnel rules adopted under AS 39.25.150(7), (15), and 08 (16). 09 (b) An administrative law judge employed or retained by the office may, in 10 conducting an administrative hearing for an agency, exercise the powers authorized by 11 law for exercise by that agency in the performance of its duties in connection with the 12 hearing. An administrative law judge may 13 (1) engage in alternative dispute resolution under regulations adopted 14 by the chief administrative law judge that is in addition to any alternate dispute 15 resolution procedure used by an agency before the case is referred to the office; 16 (2) order a party, a party's attorney, or another authorized 17 representative of a party to pay reasonable expenses, including attorney fees, incurred 18 by another party as a result of actions done in bad faith or as a result of tactics used 19 frivolously or solely intended to cause unnecessary delay; 20 (3) perform other necessary and appropriate acts in the performance of 21 official duties. 22 (c) An administrative law judge employed by the office must devote full time 23 to the duties of the office unless appointed to a position that is less than full-time. An 24 administrative law judge employed by the office may not perform duties inconsistent 25 with the duties and responsibilities of an administrative law judge. 26 (d) The office may enter into a contract with an individual who meets the 27 qualifications established in (a) of this section to serve as an administrative law judge 28 in a particular administrative hearing or in several hearings of the same type. The 29 individual is subject to AS 39.52 (Alaska Executive Branch Ethics Act). 30 Notwithstanding AS 36.30.015(d), the office may contract for or hire an 31 administrative law judge without notifying or securing the approval of the Department

01 of Law. 02 Sec. 44.64.050. Hearing officer conduct. (a) An administrative law judge 03 employed full time by the office or a hearing officer employed full time by an agency 04 may not serve in any other judicial or quasi-judicial capacity or engage in the private 05 practice of law. 06 (b) The chief administrative law judge shall, subject to AS 39.52.920 and by 07 regulation, adopt a code of hearing officer conduct. The code shall apply to the chief 08 administrative law judge, administrative law judges of the office, and hearing officers 09 of each other agency. 10 (c) Except as provided in (e) of this section, the chief administrative law judge 11 shall receive and consider all complaints against administrative law judges or hearing 12 officers employed or retained by the office or another agency alleging violations of (a) 13 of this section or of the code of hearing officer conduct. The chief administrative law 14 judge shall deliver the complaint to the attorney general when the chief administrative 15 law judge determines that the conduct alleged, if true, would constitute a violation of 16 (1) subsection (a) of this section; or 17 (2) the code and would warrant disciplinary action under the 18 regulations adopted under (b) of this section. 19 (d) If the attorney general determines that a violation has occurred, the 20 attorney general shall submit written findings to the agency that employed or retained 21 the administrative law judge or hearing officer who is the subject of the complaint 22 together with recommendations for corrective or disciplinary action. If the 23 administrative law judge is employed or retained by the office, the chief administrative 24 law judge shall take appropriate corrective or disciplinary action. 25 (e) The attorney general shall, by regulation, establish procedures to 26 implement (d) of this section, including procedures for investigating and holding 27 hearings on complaints. The attorney general shall receive and consider any 28 complaint filed against the chief administrative law judge under this section, and may 29 investigate or hold a hearing on the complaint in compliance with the regulations 30 adopted under this subsection. 31 Sec. 44.64.055. Reimbursement agreements. The office may enter into

01 agreements for reimbursement for services related to an administrative hearing from a 02 school district, municipality, or other governmental entity if the reimbursement is 03 authorized by other law. 04 Sec. 44.64.060. Procedure for hearings. (a) The chief administrative law 05 judge shall, by regulation, establish procedures for administrative hearings conducted 06 by the office. Each administrative hearing under the jurisdiction of the office or that 07 has been transferred to the office by an agency shall be conducted in accordance with 08 statutes that apply to that hearing, including, if applicable, AS 44.62 (Administrative 09 Procedure Act). In case of conflict between this section and another applicable statute 10 establishing procedures for administrative hearings, the other statute prevails. 11 However, to the extent regulations adopted by an agency for the conduct of an 12 administrative hearing conflict with regulations adopted by the chief administrative 13 law judge under this subsection, the regulations adopted by the chief administrative 14 law judge control to the maximum extent possible without conflicting with applicable 15 statutes. 16 (b) When an agency receives a request for a hearing that is subject to 17 AS 44.64.030, the agency shall, within 10 days and in writing, deny the request for 18 reasons provided by law or grant the request and refer the case to the office. The 19 agency shall immediately give notice of the denial or referral to the requestors and the 20 office. If the request is denied, the denial may be appealed to the superior court as 21 provided by other law. If the request is granted, the agency shall, within 15 days after 22 receiving the request, compile and transmit to the office a copy of the request for a 23 hearing, the names, addresses, and telephone numbers of all parties and their 24 representatives, and the agency's decision, if any, together with the record relied on to 25 support the decision. Any information provided to the office that is confidential by 26 law shall be identified by the agency as confidential and shall be kept confidential by 27 the office. 28 (c) The agency may, with materials transmitted under (b) of this section, 29 request the chief administrative law judge to permit the entity that will make the final 30 decision to participate with the assigned administrative law judge in the conduct of the 31 administrative hearing. The chief administrative law judge shall determine the degree

01 and manner of participation and may terminate that participation at any time. 02 However, the entity that participates under this subsection may not serve as the 03 administrative law judge or preside during the hearing and may not take action on 04 behalf of the agency in the agency's capacity as a party to the proceedings. 05 (d) An administrative law judge employed or retained by the office shall, 06 within 120 days after the date the agency received the request for a hearing, prepare a 07 proposed decision, unless another time period is provided by law or agreed to by the 08 parties and the chief administrative law judge. The administrative law judge shall 09 immediately submit the proposed decision to the agency. 10 (e) A proposed decision in an administrative hearing shall be in a form that 11 may be adopted as the final decision by the agency with authority to make the final 12 decision. The proposed decision is a public record, except as otherwise provided by 13 statute. A copy of the proposed decision shall be served by the office on each party in 14 the case or on the attorneys representing those parties in the hearing. Unless the office 15 has established a shorter time period or another statute has established a different time 16 period, within 30 days after the proposed decision is served, a party may file with the 17 agency a proposal for action under (1) - (5) of this subsection. The agency with 18 authority to make a final decision in the case retains agency discretion in the final 19 disposition of the case and shall, within 45 days after the date the proposed decision is 20 served or at the next regularly scheduled meeting that occurs at least 45 days after the 21 proposed decision is served, do one or more of the following: 22 (1) adopt the proposed decision as the final agency decision; 23 (2) return the case to the administrative law judge to take additional 24 evidence or make additional findings or for other specific proceedings, in which case 25 the administrative law judge shall complete the additional work and return the revised 26 proposed decision to the agency within 45 days after the original decision was 27 returned under this paragraph; 28 (3) exercise its discretion by revising the proposed enforcement action, 29 determination of best interests, order, award, remedy, sanction, penalty, or other 30 disposition of the case, and adopt the proposed decision as revised; 31 (4) in writing, reject, modify, or amend a factual finding in the

01 proposed decision by specifying the affected finding and identifying the testimony and 02 other evidence relied on by the agency for the rejection, modification, or amendment 03 of the finding, and issue a final agency decision; 04 (5) in writing, reject, modify, or amend an interpretation or application 05 in the proposed decision of a statute or regulation directly governing the agency's 06 actions by specifying the reasons for the rejection, modification, or amendment, and 07 issue a final agency decision. 08 (f) If a final decision is not issued timely in accordance with (e) of this section, 09 the administrative law judge's proposed decision is the final agency decision. 10 Sec. 44.64.070. Disqualification of administrative law judge. (a) The chief 11 administrative law judge or an administrative law judge employed or retained by the 12 office is disqualified from a case in which the administrative law judge cannot accord 13 a fair and impartial hearing or for other reasons established in the code of hearing 14 officer conduct. 15 (b) A party may request the disqualification of the chief administrative law 16 judge or another administrative law judge by filing an affidavit, before the taking of 17 evidence at a hearing, stating with particularity the grounds upon which it is claimed 18 that a fair and impartial hearing cannot be accorded by that administrative law judge. 19 Notwithstanding AS 44.62.450(c), upon receipt of the affidavit, the administrative law 20 judge assigned to the administrative hearing shall make a determination. If the affiant 21 objects to the decision, the matter shall be decided by the chief administrative law 22 judge, whose decision is final, or if the hearing is assigned to the chief administrative 23 law judge, by the attorney general, whose decision is final. 24 (c) In addition to disqualification of an administrative law judge under (a) and 25 (b) of this section, each side is entitled to change the assigned administrative law judge 26 once. Two or more parties aligned on the same side of an action shall be treated as 27 one side for purposes of this subsection, but the chief administrative law judge may 28 allow an additional change to a party whose interests are adverse to the interests of 29 another party on the same side. A party wishing to exercise the right to change the 30 administrative law judge shall give notice to the chief administrative law judge within 31 five days after notice is given that the case has been assigned. A party waives the

01 right to a change in the assigned administrative law judge by participating before that 02 administrative law judge in any proceeding or conference involving the case. 03 Sec. 44.64.080. Agency cooperation. (a) All agencies shall cooperate with 04 the chief administrative law judge and with other administrative law judges of the 05 office in the matters involving the duties of the office. 06 (b) Except as provided under AS 44.64.070 or by regulation adopted under 07 this chapter, an agency may not select or reject a particular administrative law judge 08 for assignment to an administrative hearing. 09 (c) After an administrative hearing is referred by an agency to the office for 10 hearing, the agency may not take further adjudicatory action in the case, except as a 11 party litigant or to render a final decision as provided by law. This subsection does 12 not otherwise limit the agency's authority to take action affecting a party to the case. 13 Sec. 44.64.090. Administrative hearing records. (a) The office shall 14 acquire and organize statistical and other information relating to administrative 15 hearings of the office and of other agencies. The office shall acquire and organize 16 copies of proposed and final agency decisions in administrative hearings and copies of 17 court decisions resulting from those administrative hearings. The information and 18 decisions shall be made available to the public, agencies, and the legislature. The 19 office shall make final agency decisions reached after administrative hearings 20 available online through an electronic data base. 21 (b) This section does not apply to records that are confidential or privileged. 22 Sec. 44.64.095. Federal requirements. Federal requirements applicable to an 23 administrative hearing prevail to the extent they conflict with any provision of 24 AS 44.64.010 - 44.64.200. 25 Sec. 44.64.200. Definitions. In this chapter, 26 (1) "administrative hearing" means a quasi-judicial hearing before an 27 agency; it does not include an informal conference or review held by an agency before 28 a final decision is issued or a rate-making proceeding or other nonadjudicative public 29 hearing; 30 (2) "administrative law judge" means a hearing officer who is retained 31 or employed by the office;

01 (3) "agency" means an agency of the executive branch of state 02 government, including an officer, a division, or another subunit of an agency, a board 03 or commission, a public corporation, and the University of Alaska; 04 (4) "hearing officer" means an individual who presides over the 05 conduct of an administrative hearing and who is retained or employed by an agency 06 for that purpose; 07 (5) "office" means the office of administrative hearings established in 08 AS 44.64.010. 09 * Sec. 4. AS 04.11.510(b) is amended to read: 10 (b) The board may review an application for the issuance, renewal, transfer of 11 location, or transfer to another person of a license without affording the applicant 12 notice or hearing, except 13 (1) if an application is denied, the notice of denial shall be furnished 14 the applicant immediately in writing stating the reason for the denial in clear and 15 concise language; the notice of denial must inform the applicant that the applicant is 16 entitled to an informal conference with either the director or the board, and that, if not 17 satisfied by the informal conference, the applicant is then entitled to a formal hearing 18 conducted by the office of administrative hearings (AS 44.64.010) [BEFORE THE 19 BOARD]; if the applicant requests a formal hearing, the office of administrative 20 hearings [BOARD] shall adhere to AS 44.62.330 - 44.62.630 (Administrative 21 Procedure Act); all interested persons may be heard at the hearing and unless waived 22 by the applicant and the board, the formal hearing shall be held in the area for which 23 the application is requested; 24 (2) the board may, on its own initiative or in response to an objection 25 or protest, hold a hearing to ascertain the reaction of the public or a local governing 26 body to an application if a hearing is not required under this subsection; the board 27 shall send notice of a hearing conducted under this paragraph 20 days in advance of 28 the hearing to each community council established within the municipality and to each 29 nonprofit community organization entitled to notification under AS 04.11.310(b); 30 (3) if a petition containing the signatures of 35 percent of the adult 31 residents having a permanent place of abode outside of but within two miles of an

01 incorporated city or an established village is filed with the board, the board shall hold 02 a public hearing on the question of whether the issuance, renewal, or transfer of the 03 license in the city or village would be in the public interest; 04 (4) if a protest to the issuance, renewal, transfer of location or transfer 05 to another person of a license made by a local governing body is based on a question 06 of law, the board shall hold a public hearing. 07 * Sec. 5. AS 05.20.080 is amended to read: 08 Sec. 05.20.080. Application of Administrative Procedure Act. The 09 procedure for review of the orders or actions of the department, its agents or 10 employees, is the same as that contained in AS 44.62 (Administrative Procedure Act). 11 Administrative hearings on contested cases shall be conducted by the office of 12 administrative hearings (AS 44.64.010). 13 * Sec. 6. AS 06.01.030(f) is amended to read: 14 (f) Hearings required or authorized under this title are not subject to 15 AS 44.62.330 - 44.62.630, except as required by AS 44.62.560 and 44.62.570. The 16 department shall adopt regulations, consistent with the provisions of this title, 17 establishing procedures for hearings held under this section. Administrative 18 hearings on contested cases shall be conducted by the office of administrative 19 hearings (AS 44.64.010). 20 * Sec. 7. AS 08.01.075(c) is amended to read: 21 (c) A board may summarily suspend a licensee from the practice of the 22 profession before a final hearing is held or during an appeal if the board finds that the 23 licensee poses a clear and immediate danger to the public health and safety. A person 24 is entitled to a hearing conducted by the office of administrative hearings 25 (AS 44.64.010) [BEFORE THE BOARD] to appeal the summary suspension within 26 seven days after the order of suspension is issued. A person may appeal an adverse 27 decision of the board on an appeal of a summary suspension to a court of competent 28 jurisdiction. 29 * Sec. 8. AS 08.01.087(b) is amended to read: 30 (b) If it appears to the commissioner that a person has engaged in or is about 31 to engage in an act or practice in violation of a provision of this chapter or a regulation

01 adopted under it, or a provision of AS 43.70, or a provision of this title or regulation 02 adopted under this title dealing with an occupation or board listed in AS 08.01.010, the 03 commissioner may, if the commissioner considers it in the public interest, and after 04 notification of a proposed order or action by telephone, telegraph, or facsimile to all 05 board members, if a board regulates the act or practice involved, unless a majority of 06 the members of the board object within 10 days, 07 (1) issue an order directing the person to stop the act or practice; 08 however, reasonable notice of and an opportunity for a hearing must first be given to 09 the person, except that the commissioner may issue a temporary order before a hearing 10 is held; a temporary order remains in effect until a final order affirming, modifying, or 11 reversing the temporary order is issued or until 15 days after the person receives the 12 notice and has not requested a hearing by that time; a temporary order becomes final if 13 the person to whom the notice is addressed does not request a hearing within 15 days 14 after receiving the notice; the office of administrative hearings (AS 44.64.010) 15 [COMMISSIONER OR THE COMMISSIONER'S DESIGNEE] shall conduct [BE 16 THE HEARING OFFICER AT] the hearing and shall issue a proposed decision 17 [FINAL ORDER] within 10 days after the hearing; the commissioner shall issue a 18 final order within five days after the proposed decision is issued; 19 (2) bring an action in the superior court to enjoin the acts or practices 20 and to enforce compliance with this chapter, a regulation adopted under it, an order 21 issued under it, or with a provision of this title or regulation adopted under this title 22 dealing with business licenses or an occupation or board listed in AS 08.01.010; 23 (3) examine or have examined the books and records of a person 24 whose business activities require a business license or licensure by a board listed in 25 AS 08.01.010, or whose occupation is listed in AS 08.01.010; the commissioner may 26 require the person to pay the reasonable costs of the examination; and 27 (4) issue subpoenas for the attendance of witnesses, and the production 28 of books, records, and other documents. 29 * Sec. 9. AS 08.11.090(c) is amended to read: 30 (c) The department may summarily suspend a license before final hearing or 31 during the appeals process if the department finds that the licensee poses a clear and

01 immediate danger to the public welfare and safety if the licensee continues to practice. 02 An individual whose license is suspended under this subsection is entitled to a hearing 03 conducted by the office of administrative hearings (AS 44.64.010) not 04 [DEPARTMENT NO] later than seven days after the effective date of the order. The 05 individual may appeal the suspension after the hearing to the superior court. 06 * Sec. 10. AS 08.32.171(c) is amended to read: 07 (c) The board may summarily suspend the license of a licensee who refuses to 08 submit to a physical or mental examination under AS 08.36.070(b)(1). A person 09 whose license is suspended under this section is entitled to a hearing conducted by the 10 office of administrative hearings (AS 44.64.010) [BOARD] within seven days after 11 the effective date of the order. If, after a hearing, the board upholds the suspension, 12 the licensee may appeal the suspension to a court of competent jurisdiction. 13 * Sec. 11. AS 08.36.320(c) is amended to read: 14 (c) The board may summarily suspend the license of a licensee who refuses to 15 submit to a physical or mental examination under AS 08.36.070(b)(1). A person 16 whose license is suspended under this section is entitled to a hearing conducted by the 17 office of administrative hearings (AS 44.64.010) [BOARD] within seven days after 18 the effective date of the order. If, after a hearing, the board upholds the suspension, 19 the licensee may appeal the suspension to a court of competent jurisdiction. 20 * Sec. 12. AS 08.40.170(f) is amended to read: 21 (f) The department may summarily suspend a license before a final hearing is 22 held or during an appeal if the department finds that the licensee poses a clear and 23 immediate danger to the public health and safety. A person is entitled to a hearing 24 conducted by [BEFORE] the office of administrative hearings (AS 44.64.010) 25 [DEPARTMENT] to appeal the summary suspension within seven days after the order 26 of suspension is issued. A person may appeal an adverse decision of the department 27 on an appeal of a summary suspension to a court of competent jurisdiction. 28 * Sec. 13. AS 08.40.320(f) is amended to read: 29 (f) The department may summarily suspend a license before a final hearing is 30 held or during an appeal if the department finds that the licensee poses a clear and 31 immediate danger to the public health and safety. A person is entitled to a hearing

01 conducted by [BEFORE] the office of administrative hearings (AS 44.64.010) 02 [DEPARTMENT] to appeal the summary suspension within seven days after the order 03 of suspension is issued. A person may appeal an adverse decision of the department 04 on an appeal of a summary suspension to a court of competent jurisdiction. 05 * Sec. 14. AS 08.45.070(c) is amended to read: 06 (c) The division may summarily suspend a license before final hearing or 07 during the appeals process if the division finds that the licensee poses a clear and 08 immediate danger to the public health and safety if the licensee continues to practice. 09 A licensee whose license is suspended under this section is entitled to a hearing 10 conducted by the office of administrative hearings (AS 44.64.010) not [DIVISION 11 NO] later than seven days after the effective date of the order. The licensee may 12 appeal the suspension after a hearing to a court of competent jurisdiction. 13 * Sec. 15. AS 08.54.710(i) is amended to read: 14 (i) The department may summarily suspend a licensee from practice of the 15 profession under this chapter, for a period of not more than 30 days, before a final 16 hearing is held or during an appeal if the department finds that the licensee poses a 17 clear and immediate danger to the public health and safety. A person is entitled to a 18 hearing conducted by [BEFORE] the office of administrative hearings 19 (AS 44.64.010) [DEPARTMENT] to appeal the summary suspension within seven 20 days after the order of suspension is issued. A person may appeal an adverse decision 21 of the department on an appeal of summary suspension to a court of competent 22 jurisdiction. 23 * Sec. 16. AS 08.55.140(c) is amended to read: 24 (c) The department may summarily suspend a license before final hearing or 25 during the appeals process if the department finds that the licensee poses a clear and 26 immediate danger to the public welfare and safety if the licensee continues to practice. 27 A person whose license is suspended under this subsection is entitled to a hearing 28 conducted by the office of administrative hearings (AS 44.64.010) not 29 [DEPARTMENT NO] later than seven days after the effective date of the order. The 30 person may appeal the suspension after the hearing to the superior court. 31 * Sec. 17. AS 08.64.331(c) is amended to read:

01 (c) The board may summarily suspend a license before final hearing or during 02 the appeals process if the board finds that the licensee poses a clear and immediate 03 danger to the public health and safety if the licensee continues to practice. A person 04 whose license is suspended under this section is entitled to a hearing conducted by the 05 office of administrative hearings (AS 44.64.010) not [BOARD NO] later than seven 06 days after the effective date of the order and the person may appeal the suspension 07 after a hearing to a court of competent jurisdiction. 08 * Sec. 18. AS 08.65.120(c) is amended to read: 09 (c) The board may summarily suspend a license before final hearing or during 10 the appeals process if the board finds that the licensee poses a clear and immediate 11 danger to the public health and safety if the licensee continues to practice. A person 12 whose license is suspended under this section is entitled to a hearing conducted by the 13 office of administrative hearings (AS 44.64.010) not [BOARD NO] later than seven 14 days after the effective date of the order and the person may appeal the suspension 15 after a hearing to a court of competent jurisdiction. 16 * Sec. 19. AS 08.68.275(c) is amended to read: 17 (c) The board may summarily suspend a license before final hearing or during 18 the appeals process if the board finds that the licensee poses a clear and immediate 19 danger to the public health and safety. A person whose license is suspended under this 20 section is entitled to a hearing conducted by the office of administrative hearings 21 (AS 44.64.010) [BOARD] within seven days after the effective date of the order. If, 22 after a hearing, the board upholds the suspension, the licensee may appeal the 23 suspension to a court of competent jurisdiction. 24 * Sec. 20. AS 08.86.204(b) is amended to read: 25 (b) The board may summarily suspend the license of a licensee who refuses to 26 submit to a physical or mental examination under AS 08.86.075. A person whose 27 license is suspended under this subsection is entitled to a hearing conducted by the 28 office of administrative hearings (AS 44.64.010) [BOARD] within seven days after 29 the effective date of the order. If, after the [A] hearing, the board upholds the 30 suspension, the licensee may appeal the suspension to a court of competent 31 jurisdiction.

01 * Sec. 21. AS 08.88.460(b) is amended to read: 02 (b) A copy of a claim filed with the commission under (a) of this section shall 03 be sent to each real estate licensee alleged to have committed the misconduct resulting 04 in losses, to the principal real estate broker employing a licensee alleged to have 05 committed the conduct resulting in losses, and to any other real estate licensee 06 involved in the transaction at least 20 days before any hearing held on the claim by the 07 office of administrative hearings (AS 44.64.010) [COMMISSION]. 08 * Sec. 22. AS 08.88.460(d) is amended to read: 09 (d) A claimant under this section shall pay a filing fee of $250 to the 10 commission at the time the claim is filed. The filing fee shall be refunded if the 11 (1) [THE] commission makes an award to the claimant from the real 12 estate surety fund; 13 (2) [THE] claim is dismissed under (c) of this section; or 14 (3) [THE] claim is withdrawn by the claimant before the office of 15 administrative hearings (AS 44.64.010) [COMMISSION] holds a hearing on the 16 claim. 17 * Sec. 23. AS 08.88.472(c) is amended to read: 18 (c) The commission may contract under AS 36.30 (State Procurement Code) 19 with a person for the person to perform [HEARING AND] legal services for the 20 commission with regard to a claim against the real estate surety fund. The contract 21 may cover one or more claims. 22 * Sec. 24. AS 08.92.040(c) is amended to read: 23 (c) If the department determines that a person is acting as a promoter in 24 violation of this chapter, the department may order the person to stop the violation. 25 Upon receipt of the order, the person affected has the right to be heard and to present 26 proof to the office of administrative hearings (AS 44.64.010) [DEPARTMENT] that 27 the violation has not occurred. Upon [IN THE DEPARTMENT'S DISCRETION OR 28 UPON] application made by the recipient of the order, the office of administrative 29 hearings may [DEPARTMENT SHALL] schedule a hearing at the earliest possible 30 time. After the hearing the department may affirm, modify, or set aside the order. 31 * Sec. 25. AS 10.06.633(b) is amended to read:

01 (b) A corporation may not be dissolved under this section unless the 02 commissioner has given the corporation written notice of its delinquency, failure, or 03 noncompliance by mail as provided by (i) of this section. If the corporation fails, 04 within 60 days after the requirements of (i) of this section have been satisfied, to 05 contest the alleged neglect, omission, delinquency, or noncompliance by a written 06 request for a hearing conducted by [BEFORE] the office of administrative hearings 07 (AS 44.64.010) [COMMISSIONER] or fails to correct the asserted neglect, omission, 08 delinquency, or noncompliance, it may be dissolved under (d) of this section. 09 * Sec. 26. AS 10.06.865 is amended to read: 10 Sec. 10.06.865. Cancellation of certificates issued and filings accepted. 11 The commissioner may, within one year after a filing, and after written notice to the 12 corporation or individual making the filing, cancel a certificate issued or filing 13 accepted under this chapter, on any ground existing at the time of issuance or filing for 14 which the commissioner could have originally refused to issue the certificate or accept 15 the filing. The notice of cancellation must state the reason for the cancellation. A 16 corporation or individual may request a hearing conducted by [BEFORE] the office 17 of administrative hearings (AS 44.64.010) [COMMISSIONER] within 90 days after 18 receipt of the notice. Cancellation becomes final if the corporation or individual does 19 not request a hearing within 90 days after receipt of notice. Notice of cancellation 20 shall be sent by certified mail with return receipt requested. If the return receipt is not 21 received by the department within a reasonable time and the department has made 22 diligent inquiry as to the address of the corporation, notice may be made by 23 publication in a newspaper of general circulation in the vicinity of the registered office 24 of the corporation or the address of the individual who made the filing, and the 25 cancellation becomes final 60 days after publication of the notice if the person or 26 corporation does not request a hearing. 27 * Sec. 27. AS 10.13.770(b) is amended to read: 28 (b) If the department fails to promptly notify the office of administrative 29 hearings (AS 44.64.010) of the application and the office fails to begin a hearing 30 within 15 business days after the application is filed or within a longer period to which 31 the licensee or subject person consents, the order shall be considered rescinded.

01 * Sec. 28. AS 14.11.016(b) is amended to read: 02 (b) A district may appeal an adverse decision of the department under (a) of 03 this section by filing a written notice of appeal with the commissioner within 15 days 04 after the date of the department's decision. The notice of appeal must state the legal 05 and factual basis for the appeal and the precise relief sought. The failure of the district 06 to include an issue in a notice of appeal constitutes a waiver of the right to have the 07 issue considered. Not later than 10 days after receipt by the commissioner of a notice 08 of appeal, the chief administrative law judge of the office of administrative 09 hearings (AS 44.64.010) [COMMISSIONER] shall appoint an administrative law 10 judge [A HEARING OFFICER] who is qualified under AS 44.62.350(c) to serve as 11 hearing officer and consider the appeal. If the hearing officer finds that the notice of 12 appeal does not raise a reasonable issue of fact or law, the hearing officer shall issue a 13 written decision denying the appeal. Denial of an appeal by hearing officer is a final 14 decision that may be appealed under (d) of this section. If the hearing officer finds 15 that the notice of appeal raises a reasonable issue of fact or law, the hearing officer 16 shall conduct a hearing on those issues and recommend a decision to the board. The 17 hearing officer shall issue a decision on the appeal not later than 60 days after being 18 appointed. The board shall consider the recommended decision of the hearing officer 19 at its next regularly scheduled meeting and may adopt all, part, or none of the 20 recommended decision or may remand the issue to the hearing officer for further 21 hearings. The board shall issue its decision in writing within 10 days after 22 consideration of the hearing officer's decision. 23 * Sec. 29. AS 14.18.090(a) is amended to read: 24 (a) The board shall enforce compliance by school districts and regional 25 educational attendance areas with the provisions of this chapter and the regulations 26 and procedures adopted under it by appropriate order made in accordance with 27 AS 44.62. After a hearing conducted by the office of administrative hearings 28 (AS 44.64.010) and a finding by the board that a district or a regional educational 29 attendance area is not in compliance with this chapter and is not actively working to 30 come into compliance, the board shall institute appropriate proceedings to abate the 31 practices found by the board to be a violation of this chapter.

01 * Sec. 30. AS 14.48.130(b) is amended to read: 02 (b) The commission shall investigate the complaint and may attempt to effect 03 a settlement by persuasion and conciliation. A [THE COMMISSION MAY 04 CONSIDER A] complaint may be considered after 30 days' [DAYS] written notice 05 by registered mail to the institution or agent, or both, giving notice of a time and place 06 for hearing on the complaint. The hearing shall be conducted in accordance with 07 AS 44.62 (Administrative Procedure Act) by the office of administrative hearings 08 (AS 44.64.010). 09 * Sec. 31. AS 18.18.030(b) is amended to read: 10 (b) The department may, without a hearing, summarily suspend a license of a 11 hospice program if it finds that the actions or deficiencies of the program have caused, 12 or present an immediate threat of causing, serious injury to a hospice program client. 13 A licensee is entitled to a hearing conducted by the office of administrative 14 hearings (AS 44.64.010) [BEFORE THE DEPARTMENT] to appeal the summary 15 suspension within seven days after the order of suspension is issued. A licensee may 16 appeal an adverse decision of the department on an appeal of a summary suspension to 17 the superior court. A summary suspension remains in effect until the department finds 18 that the actions or deficiencies are corrected, the license is revoked, or the licensee is 19 successful in appealing the suspension. 20 * Sec. 32. AS 18.18.030(c) is amended to read: 21 (c) The department may, without a hearing, reduce a hospice license to a 22 provisional license for a period of time established by the department if the department 23 finds that the licensee is temporarily unable to comply with 18.18.005 - 18.18.390 or 24 is in the process of becoming decertified under the Medicare program but is taking 25 appropriate steps to bring the program into compliance with 18.18.005 - 18.18.390 or 26 Medicare certification requirements. A licensee is entitled to a hearing conducted by 27 the office of administrative hearings [BEFORE THE DEPARTMENT] to appeal a 28 reduction to a provisional license under this subsection within seven days after the 29 order to reduce the license is issued. A licensee may appeal an adverse decision of the 30 department on an appeal of the order reducing the license to a provisional license to 31 the superior court. A program with a provisional license under this subsection may

01 not accept new clients. If the program fails to correct its deficiencies and does not 02 successfully appeal the order reducing the license to provisional status within the 03 period stipulated in the provisional license, the department shall revoke the license. 04 * Sec. 33. AS 18.60.093 is amended by adding a new subsection to read: 05 (g) After obtaining consent from the chief administrative law judge 06 (AS 44.64.020), the commission shall appoint an administrative law judge employed 07 or retained by the office of administrative hearings to preside at a hearing conducted 08 under this section. AS 44.64.060 and 44.64.070 do not apply to the hearing. The 09 administrative law judge who presided at the hearing shall be present during the 10 consideration of the case and, if requested by the commission, shall assist and advise 11 the commission. A member of the commission who has not heard all of the evidence 12 may not vote on the decision. 13 * Sec. 34. AS 18.67.020(f) is amended to read: 14 (f) After obtaining consent from the chief administrative law judge 15 (AS 44.64.020), the [THE] board may appoint one or more administrative law 16 judges employed or retained by the office of administrative hearings [HEARING 17 OFFICERS, WHO MUST BE LICENSED TO PRACTICE LAW IN THE STATE,] 18 to conduct hearings and take testimony in proceedings under this chapter, but final 19 determinations of any matter shall be only by the board. AS 44.64.060 and 44.64.070 20 do not apply to proceedings under this chapter. An administrative law judge [A 21 HEARING OFFICER] acting under this section shall report findings of fact and 22 conclusions of law to the board, together with the reasons for the findings and 23 conclusions. The board shall act only after consideration of the report and other 24 evidence that it considers appropriate. 25 * Sec. 35. AS 18.80.120 is amended by adding a new subsection to read: 26 (b) After obtaining consent from the chief administrative law judge 27 (AS 44.64.020), the commission shall appoint an administrative law judge employed 28 or retained by the office of administrative hearings to preside at a hearing conducted 29 under this section. AS 44.64.060 and 44.64.070 do not apply to the hearing. The 30 administrative law judge who presided at the hearing shall be present during the 31 consideration of the case and, if requested by the commission, shall assist and advise

01 the commission. A member of the commission who has not heard all of the evidence 02 may not vote on the decision. 03 * Sec. 36. AS 18.80.145(b) is amended to read: 04 (b) If, within the period allowed, [THE COMMISSION CONDUCTS] a 05 hearing is conducted and [REACHES] a decision is reached under AS 18.80.120 and 06 18.80.130, the decision of the commission is binding on the parties to the court action 07 as to all issues resolved in the hearing but not as to any issues not resolved in the 08 hearing. 09 * Sec. 37. AS 18.80.145(c) is amended to read: 10 (c) When proceedings in the superior court are deferred for a hearing and 11 decision [BY THE COMMISSION] under this section, the plaintiff may proceed, after 12 the decision of the commission, as an aggrieved party for the purpose of obtaining 13 judicial review under AS 18.80.135, whether or not the person was a party to, or 14 complainant in, the administrative [COMMISSION] proceedings. 15 * Sec. 38. AS 21.06.170(a) is amended to read: 16 (a) With respect to the subject of an examination, investigation, or hearing 17 being conducted by the director or an examiner, if general written authority has been 18 given the examiner by the director, the director or the examiner may subpoena 19 witnesses and administer oaths or affirmations and examine any person under oath, 20 and may compel the production of records, books, papers, contracts, and other 21 documents by attachments, if necessary. If, in connection with an examination of an 22 insurer, the director desires to examine an officer, director, or manager who is then 23 outside this state, the director is authorized to conduct and to enforce by appropriate 24 and available means an examination under oath in another state or a territory of the 25 United States in which the officer, director, or manager may then presently be, to the 26 full extent permitted by the laws of the other state or territory, this special 27 authorization considered. An administrative law judge from the office of 28 administrative hearings (AS 44.64.010) conducting a hearing under this title may, 29 in the course of the hearing, exercise the powers granted to the director under 30 this subsection. 31 * Sec. 39. AS 21.06.170(d) is amended to read:

01 (d) If a person disobeys or resists a lawful order of the administrative law 02 judge or director, refuses to respond to a subpoena, refuses to take oath or affirmation 03 as a witness, refuses to be examined, or is guilty of misconduct at a hearing or so near 04 the hearing as to obstruct the proceeding, the administrative law judge or director 05 shall certify the facts to the superior court where the hearing is held, and, upon 06 certification, the court shall issue an order directing the person to appear before the 07 court and show cause why the person should not be punished for contempt. 08 * Sec. 40. AS 21.06.180(b) is amended to read: 09 (b) The office of administrative hearings (AS 44.64.010) [DIRECTOR] shall 10 conduct [HOLD] a hearing on behalf of the director if required under 11 AS 44.64.030. Otherwise, the director shall conduct a hearing if required by a 12 provision of this title, or upon written demand to the director by a person aggrieved 13 by an act, threatened act, or failure of the director to act, or by a report, regulation, or 14 order of the director (other than an order for the holding of a hearing, or an order on 15 hearing or under it). A demand must specify the grounds to be relied upon at the 16 hearing as a basis for the relief. Unless postponed by mutual consent or for good 17 cause shown, the hearing shall be held within 30 days after receipt by the director of 18 the written demand. 19 * Sec. 41. AS 21.06.200 is amended to read: 20 Sec. 21.06.200. Notice of hearing. Not less than 20 days in advance, the 21 administrative law judge or director shall give notice of the time and place of the 22 hearing, stating the matters to be considered at the hearing. If the persons to be given 23 notice are not specified in the provision under which the hearing is held, the 24 administrative law judge or director shall give notice to all persons whose pecuniary 25 interests are to be directly and immediately affected by the hearing. 26 * Sec. 42. AS 21.06.210(a) is amended to read: 27 (a) The administrative law judge or director shall allow a party to the 28 hearing to appear in person and by counsel, to be present during the giving of all 29 evidence, to have a reasonable opportunity to inspect all documentary evidence and to 30 examine witnesses, to present evidence in support of the party's interest, and to have 31 subpoenas issued by the administrative law judge or director to compel attendance

01 of witnesses and production of evidence in the party's behalf. 02 * Sec. 43. AS 21.06.210(b) is amended to read: 03 (b) The administrative law judge or director shall permit to become a party 04 to the hearing by intervention, if timely, any person who was not an original party to 05 the proceeding and whose pecuniary interests are to be directly and immediately 06 affected by the director's order made upon the hearing. 07 * Sec. 44. AS 21.06.210(d) is amended to read: 08 (d) Upon written request seasonably made by a party to the hearing and at that 09 person's expense, the administrative law judge or director shall cause a full 10 stenographic record of the proceedings to be made by a competent reporter. If 11 transcribed, a copy of the stenographic record shall be furnished to the director, 12 without cost to the director or the state, and shall be a part of the director's record of 13 the hearing. If transcribed, a copy of the stenographic record shall be furnished to any 14 other party to the hearing at the request and expense of the other party. If no 15 stenographic record is made or transcribed, the administrative law judge or director 16 shall prepare an adequate record of the evidence and of the proceedings. 17 * Sec. 45. AS 21.06.210(f) is amended to read: 18 (f) If the parties agree, the administrative law judge or director may conduct 19 a hearing under this section by teleconference. 20 * Sec. 46. AS 21.06.210(h) is amended to read: 21 (h) The administrative law judge or director may close a hearing to the 22 public when the administrative law judge or director finds the closure is necessary to 23 protect a person against unwarranted injury or is in the public interest. 24 * Sec. 47. AS 21.06.220(a) is amended to read: 25 (a) In conducting the hearing, the administrative law judge or director shall 26 sit in a quasi-judicial capacity. Within 45 [30] days after termination of the hearing, 27 rehearing, or reargument, the director shall make an order on hearing, covering matters 28 involved in the hearing, rehearing, or reargument, and shall give a copy of the order to 29 the same persons given notice of the hearing. 30 * Sec. 48. AS 24.60.030 is amended by adding a new subsection to read: 31 (i) Except for supplying information requested by the hearing officer or the

01 entity with authority to make the final decision in the case, or when responding to 02 contacts initiated by the hearing officer or the entity with authority to make the final 03 decision in the case, a legislator or legislative employee may not attempt to influence 04 the outcome of an administrative hearing by directly or indirectly contacting or 05 attempting to contact the hearing officer assigned to the hearing or the entity with 06 authority to make the final decision in the case unless the 07 (1) contact is made in the presence of all parties to the hearing or the 08 parties' representatives and the contact is made a part of the record; or 09 (2) fact and substance of the contact is promptly disclosed by the 10 legislator or legislative employee to all parties to the hearing and the contact is made a 11 part of the record. 12 * Sec. 49. AS 34.45.400(c) is amended to read: 13 (c) At the formal hearing, the administrative law judge from the office of 14 administrative hearings (AS 44.64.010) [DEPARTMENT] may subpoena witnesses 15 and may administer oaths and make inquiries necessary to determine the validity of 16 the claim. The person aggrieved may present arguments and evidence relevant to the 17 decision or action of the department. If, after the hearing, the department determines 18 that a correction is warranted, the department shall make the correction. 19 * Sec. 50. AS 36.30.015(d) is amended to read: 20 (d) An agency may not contract for the services of legal counsel without the 21 approval of the attorney general. An agency may not contract for the services of a 22 hearing officer or administrative law judge for a administrative, quasi-judicial 23 hearing without the approval of the attorney general and the chief administrative 24 law judge of the office of administrative hearings (AS 44.64.010). 25 * Sec. 51. AS 36.30.615 is amended to read: 26 Sec. 36.30.615. Hearing on protest appeal. A hearing on a protest appeal 27 shall be conducted in accordance with AS 36.30.670 and regulations adopted by the 28 commissioner to the extent the regulations do not conflict with regulations 29 adopted under AS 44.64.060. 30 * Sec. 52. AS 36.30.630(a) is amended to read: 31 (a) Except as provided in (b) of this section, a hearing shall be conducted

01 according to AS 36.30.670 and, to the extent they do not conflict with regulations 02 adopted under AS 44.64.060, regulations adopted by the commissioner of 03 administration on a contract claim appealed to the commissioner of administration or 04 the commissioner of transportation and public facilities or referred to either 05 commissioner under AS 36.30.620(f). 06 * Sec. 53. AS 36.30.635(a) is amended to read: 07 (a) After consultation with the using agency and the attorney general and after 08 a hearing conducted according to AS 36.30.670 and, to the extent they do not 09 conflict with regulations adopted under AS 44.64.060, regulations adopted by the 10 commissioner of administration, the commissioner of administration or the 11 commissioner of transportation and public facilities may debar a person for cause from 12 consideration for award of contracts. Notice of a debarment hearing shall be provided 13 in writing at least seven days before the hearing. The debarment may not be for a 14 period of more than three years. 15 * Sec. 54. AS 36.30.650 is amended to read: 16 Sec. 36.30.650. Hearing on a suspension. (a) A person suspended under 17 AS 36.30.635 is entitled to a hearing conducted according to AS 36.30.670 and, to the 18 extent that they do not conflict with regulations adopted under AS 44.64.060, 19 regulations adopted by the commissioner of administration if the person files a written 20 request for a hearing with the commissioner of administration or the commissioner of 21 transportation and public facilities, as appropriate, within seven days after receipt of 22 the notice of suspension under AS 36.30.645. 23 (b) If a suspended person requests a hearing, the commissioner of 24 administration or the commissioner of transportation and public facilities, as 25 appropriate, after consulting with the office of administrative hearings 26 (AS 44.64.010), shall schedule a prompt hearing unless the attorney general 27 determines that a hearing at the proposed time is likely to jeopardize an investigation. 28 A hearing may not be delayed longer than six months after notice of the suspension is 29 provided under AS 36.30.645. 30 * Sec. 55. AS 36.30.670(a) is amended to read: 31 (a) The chief administrative law judge (AS 44.64.010) [COMMISSIONER

01 OF ADMINISTRATION OR THE COMMISSIONER OF TRANSPORTATION 02 AND PUBLIC FACILITIES] shall assign an administrative law judge to act as a 03 hearing officer [OR APPOINT A HEARING OFFICER] for a hearing conducted 04 under this chapter. The hearing officer shall arrange for a prompt hearing and notify 05 the parties in writing of the time and place of the hearing. The hearing shall be 06 conducted in an informal manner. The provisions of AS 44.62 (Administrative 07 Procedure Act) do not apply to a hearing conducted under this chapter. 08 * Sec. 56. AS 36.30.675(a) is amended to read: 09 (a) The [IF THE COMMISSIONER OF ADMINISTRATION OR THE 10 COMMISSIONER OF TRANSPORTATION AND PUBLIC FACILITIES IS NOT 11 ACTING AS HEARING OFFICER, THE] hearing officer shall recommend a decision 12 to the commissioner of administration or the commissioner of transportation and 13 public facilities, as appropriate, based on the evidence presented. The 14 recommendation must include findings of fact and conclusions of law. 15 * Sec. 57. AS 39.52.120 is amended by adding a new subsection to read: 16 (e) Except for supplying information requested by the hearing officer or the 17 entity with authority to make the final decision in the case, or when responding to 18 contacts initiated by the hearing officer or the entity with authority to make the final 19 decision in the case, a public officer may not attempt to influence the outcome of an 20 administrative hearing by directly or indirectly contacting or attempting to contact the 21 hearing officer or entity with authority to make the final decision in the case assigned 22 to the hearing officer unless the 23 (1) contact is made in the presence of all parties to the hearing or the 24 parties' representatives and the contact is made a part of the record; or 25 (2) fact and substance of the contact is promptly disclosed by the 26 public officer to all parties to the hearing and the contact is made a part of the record. 27 * Sec. 58. AS 39.52.350(c) is amended to read: 28 (c) If the subject of the accusation denies that a violation of this chapter has 29 occurred, the attorney general shall refer the matter to the personnel board, which 30 shall notify the chief administrative law judge (AS 44.64.010), who shall appoint 31 an administrative law judge to serve as a hearing officer to conduct a hearing.

01 * Sec. 59. AS 43.05.420 is amended by adding a new subsection to read: 02 (d) If there is a vacancy in the office of chief administrative law judge, the 03 commissioner may refer a case to a hearing officer for a hearing under AS 43.05.400 - 04 43.05.499. 05 * Sec. 60. AS 43.05.420(d) is repealed and reenacted to read: 06 (d) If there is a vacancy in the office of chief administrative law judge, the 07 commissioner may refer a case to the office of administrative hearings (AS 44.64.010) 08 and request that office to conduct the hearing. Once referred, the office shall have 09 jurisdiction over the case until the final administrative decision is made. 10 AS 43.05.435 - 43.05.499 apply to a hearing conducted by the office under this 11 subsection. 12 * Sec. 61. AS 43.70.075(m) is amended to read: 13 (m) The department may initiate suspension of a business license endorsement 14 or the right to obtain a business license endorsement under this section by sending the 15 person subject to the suspension a notice by certified mail, return receipt requested, or 16 by delivering the notice to the person. The notice must contain information that 17 informs the person of the grounds for suspension, the length of any suspension sought, 18 and the person's right to administrative review [BEFORE THE DEPARTMENT]. A 19 suspension begins 30 days after receipt of notice described in this subsection unless 20 the person delivers a timely written request for a hearing to the department in the 21 manner provided by regulations of the department. If a hearing is requested under this 22 subsection, a hearing officer of the office of administrative hearings (AS 44.64.010) 23 [DEPARTMENT] shall determine the issues by using the preponderance of the 24 evidence test and shall, to the extent they do not conflict with regulations adopted 25 under AS 44.64.060, conduct the hearing in the manner provided by regulations of the 26 department. A hearing under this subsection is limited to the following questions: 27 (1) was the person holding the business license endorsement, or an 28 agent or employee of the person while acting within the scope of the agency or 29 employment of the person, convicted by plea or judicial finding of violating 30 AS 11.76.100, 11.76.106, or 11.76.107; 31 (2) if the department does not allege a conviction of AS 11.76.100,

01 11.76.106, or 11.76.107, did the person, or an agent or employee of the person while 02 acting within the scope of the agency or employment of the person, violate a provision 03 of (a) or (g) of this section; 04 (3) within the 24 months before the date of the department's notice 05 under this subsection, was the person, or an agent or employee of the person while 06 acting within the scope of the agency or employment of the person, convicted of 07 violating AS 11.76.100, 11.76.106, or 11.76.107 or adjudicated for violating a 08 provision of (a) or (g) of this section. 09 * Sec. 62. AS 43.70.075(q) is amended to read: 10 (q) The department may adopt regulations that do not conflict with 11 regulations adopted under AS 44.64.010 to establish an administrative hearing 12 process for actions taken [BY THE DEPARTMENT] under this section. AS 44.62 13 (Administrative Procedure Act) does not apply to a hearing under this section. 14 * Sec. 63. AS 44.62.350(a) is amended to read: 15 (a) The governor shall assign a qualified, unbiased, and impartial hearing 16 officer, with experience in the general practice of law, to conduct hearings under this 17 chapter that are not conducted by the office of administrative hearings 18 (AS 44.64.010). A [. THE] hearing officer may perform other duties in connection 19 with the administration of this chapter and other laws. 20 * Sec. 64. AS 44.62.450(a) is amended to read: 21 (a) A hearing in a contested case shall be presided over by a hearing officer. 22 Unless the hearing is conducted by the office of administrative hearings 23 (AS 44.64.010), the [THE] agency itself shall determine whether the hearing officer 24 hears the case alone or whether the agency hears the case with the hearing officer. 25 * Sec. 65. AS 44.62.500(b) is amended to read: 26 (b) If a contested case is heard by a hearing officer alone, the hearing officer 27 shall prepare a proposed decision in a form that may be adopted as the decision in the 28 case. A copy of the proposed decision shall be filed by the agency as a public record 29 with the lieutenant governor, and a copy of the proposed decision shall be served by 30 the agency on each party in the case and the party's attorney. Except as otherwise 31 provided in AS 44.64.060(e), for a hearing conducted by the office of

01 administrative hearings, the [THE] agency itself may adopt the proposed decision in 02 its entirety, or may reduce the proposed penalty and adopt the balance of the proposed 03 decision. 04 * Sec. 66. AS 44.62.500(c) is amended to read: 05 (c) If the proposed decision is not adopted as provided in (b) of this section the 06 agency may decide the case upon the record, including the transcript, with or without 07 taking additional evidence, or may refer the case to the same or another hearing officer 08 to take additional evidence. If the case is so assigned the hearing officer shall prepare 09 a proposed decision as provided in (b) of this section upon the additional evidence and 10 the transcript and other papers that are part of the record of the earlier hearing. A copy 11 of the proposed decision shall be furnished to each party and the party's attorney as 12 prescribed by (b) of this section. The agency may not decide a case provided for in 13 this subsection without giving the parties the opportunity to present either oral or 14 written argument before the agency. If additional oral evidence is introduced before 15 the agency, an agency member may not vote unless that member has heard the 16 additional oral evidence. This subsection does not apply to a hearing conducted by 17 the office of administrative hearings. 18 * Sec. 67. AS 44.64.030(a), added by sec. 3 of this Act, is amended to read: 19 (a) The office shall conduct all adjudicative administrative hearings required 20 under the following statutes or under regulations adopted to implement the statutes: 21 (1) AS 04.11.510(b)(1) and (c) (alcoholic beverages license); 22 (2) AS 05.15 (charitable gaming); 23 (3) AS 05.20 (recreational devices); 24 (4) AS 05.90.001 (special racing events); 25 (5) AS 06 (banks and financial institutions); 26 (6) AS 08 (occupational licensing), other than AS 08.08 and 27 AS 08.62.046; 28 (7) AS 10.06 (Alaska Corporations Code); 29 (8) AS 10.13 (Alaska BIDCO Act); 30 (9) AS 10.25.375 (Electric and Telephone Cooperative Act); 31 (10) AS 10.50.408 (limited liability companies);

01 (11) AS 14.11.016 (education-related facility grants); 02 (12) AS 14.18 (discrimination in public education); 03 (13) AS 14.20.030 (teacher certificates); 04 (14) AS 14.48 (postsecondary educational institutions); 05 (15) AS 17.20 (Alaska Food, Drug, and Cosmetic Act), other than 06 AS 17.20.060 and 17.20.360; 07 (16) AS 18.18.030 (hospice licenses); 08 (17) AS 18.20 (hospitals and nursing facilities), other than 09 AS 18.20.180; 10 (18) AS 18.35.040 (tourist accommodations); 11 (19) AS 21.09, AS 21.22.190, AS 21.27, AS 21.34, AS 21.36, 12 AS 21.69, AS 21.86.200, AS 21.87, and AS 21.89 (insurance); 13 (20) AS 25.27 (child support enforcement); 14 (21) AS 32.06 (Uniform Partnership Act); 15 (22) AS 34.45 (unclaimed property); 16 (23) AS 34.55.024 and 34.55.026 (Uniform Land Sales Practices Act); 17 (24) AS 36.30 (State Procurement Code), other than 18 AS 36.30.627(a)(2); 19 (25) AS 38.05.065 (contracts for sale of state land); 20 (26) AS 39.52 (Alaska Executive Branch Ethics Act); 21 (27) AS 43.23 (permanent fund dividends); 22 (28) AS 43.70 (Alaska Business License Act); 23 (29) AS 44.50 (notaries public); 24 (30) AS 44.77 (claims against the state); 25 (31) AS 45.30.040 (mobile homes); 26 (32) AS 45.55 (Alaska Securities Act); 27 (33) AS 45.57 (Takeover Bid Disclosure Act); 28 (34) AS 46 (water, air, energy, and environmental conservation), 29 other than AS 46.03.820, 46.03.850, AS 46.39, and AS 46.40; 30 (35) AS 47.33 (assisted living homes); 31 (36) [(35)] AS 47.35 (child care);

01 (37) [(36)] AS 47.45 (longevity bonuses). 02 * Sec. 68. AS 44.77.040(a) is amended to read: 03 (a) The Department of Administration, after consulting with the office of 04 administrative hearings (AS 44.64.010), shall fix a time for hearing the appeal and 05 shall notify the claimant and the officer who approved the voucher and give them a 06 reasonable opportunity to be heard. The hearing shall be conducted by the office of 07 administrative hearings. 08 * Sec. 69. AS 45.30.040(c) is amended to read: 09 (c) Whenever it determines that there may be a violation of the provisions of 10 this chapter by a manufacturer or dealer of mobile homes, the department may give 11 notice of hearing, and, within 30 days after giving notice, [HOLD] a hearing shall be 12 held by the office of administrative hearings (AS 44.64.010) to determine whether 13 there has been a violation. After notice and hearing, 14 (1) if the department finds that there has been a violation of the 15 provisions of this chapter, the department may issue an order directing that the person 16 who is violating the provision cure the violation in a reasonable time and in a 17 reasonable manner; 18 (2) if the department determines that violations of the provisions of 19 this chapter are regular and recurring, it may require forfeiture of the bond to the 20 benefit of the state and arrange for distribution of the proceeds of the bond to the 21 mobile home owners injured by the activities of the dealer or manufacturer, or to 22 mobile home dealers injured by the activities of the manufacturer. 23 * Sec. 70. AS 45.55.935 is amended to read: 24 Sec. 45.55.935. Hearings. (a) The administrator shall adopt regulations, 25 consistent with the provisions of this chapter and with regulations adopted under 26 AS 44.64.060, governing administrative hearings conducted by the office of 27 administrative hearings (AS 44.64.010) [ADMINISTRATOR OR A DESIGNEE OF 28 THE ADMINISTRATOR] for the following: 29 (1) orders issued under AS 45.55.120, 45.55.900(d), or 45.55.920; in 30 these instances, the administrator shall promptly send a notice of opportunity for 31 hearing to the issuer of the securities and to all persons who have filed with the

01 department a notice of intention to sell the securities; and 02 (2) orders issued under AS 45.55.060; before the administrator enters 03 an order under AS 45.55.060, the administrator shall send to the person involved a 04 notice of opportunity for hearing; if the person involved is an agent or investment 05 adviser representative, then the administrator shall, in addition, notify the employing 06 broker-dealer, state investment adviser, federal covered adviser, or issuer. 07 (b) In conducting a hearing in accordance with (a) of this section, the 08 administrative law judge [ADMINISTRATOR] may issue a subpoena to compel the 09 attendance of any witness or party and to compel production of evidence. 10 * Sec. 71. AS 45.55.950(e) is amended to read: 11 (e) Every hearing in an administrative proceeding shall be public unless the 12 administrative law judge, [ADMINISTRATOR] in the exercise of discretion, grants 13 a request joined in by all the respondents that the hearing be conducted privately. 14 * Sec. 72. AS 45.57.020(a) is amended to read: 15 (a) An offeror may not make a takeover bid unless at least 20 days before the 16 bid the offeror files with the department and with the registered agent of the offeree 17 company a statement containing all the information required by (c) of this section and 18 either 19 (1) within 10 days following the filing no hearing has been ordered by 20 the department or requested by the offeree company; or 21 (2) a hearing has been ordered within that time and, after [UPON] the 22 hearing conducted by the office of administrative hearings (AS 44.64.010), the 23 department has decided [ADJUDICATED] that the offeror proposed to make fair, 24 full, and effective disclosure to offerees of all information material to a decision to 25 accept or reject the offer. 26 * Sec. 73. AS 45.57.020(b) is amended to read: 27 (b) A hearing shall begin within 20 days of the date of filing of the statement, 28 and adjudication shall be made within 30 days of the filing unless extended by the 29 administrative law judge [DEPARTMENT] for the convenience of the parties or 30 protection of the offerees. 31 * Sec. 74. AS 46.15.065(c) is amended to read:

01 (c) The commissioner shall make investigations as necessary of rights asserted 02 by declarations filed under this section and shall determine each existing appropriation 03 and mail a summary of the determination to each person who has filed a declaration 04 with respect to the specified area or source. Any person adversely affected by a 05 determination may file with the commissioner a request for a hearing within 20 days 06 of the date the notice is mailed. If a hearing is requested, the commissioner shall, 07 after consulting with the office of administrative hearings (AS 44.64.010), send a 08 notice of the time and place of the hearing to each person who has filed a declaration. 09 * Sec. 75. AS 47.45.050 is amended to read: 10 Sec. 47.45.050. Department hearing. The Department of Health and Social 11 Services may arrange with the office of administrative hearings (AS 44.64.010) to 12 hold a [DEPARTMENTAL] hearing upon the request of an applicant or recipient who 13 has been disqualified. Before this hearing the department shall by certified mail notify 14 an applicant or recipient in plain and comprehensive language the exact reason for the 15 disqualification. Form letters using only referral to state statutes or department 16 regulations, or otherwise vague in detail, are not considered compliance by the 17 department with this section. 18 * Sec. 76. The uncodified law of the State of Alaska is amended by adding a new section to 19 read: 20 APPLICABILITY. (a) Sections 1 - 58, 60 - 66, 68 - 73, and 75 of this Act apply to 21 administrative proceedings that begin on or after July 1, 2005. 22 (b) Sections 67 and 74 of this Act apply to administrative proceedings that begin on 23 or after July 1, 2007. 24 * Sec. 77. The uncodified law of the State of Alaska is amended by adding a new section to 25 read: 26 REGULATIONS. The chief administrative law judge and any agency affected by this 27 Act may proceed to adopt regulations to implement this Act. A regulation adopted under this 28 section takes effect under AS 44.62 (Administrative Procedure Act) but not before the 29 effective date of the law implemented by the regulation. 30 * Sec. 78. The uncodified law of the State of Alaska is amended by adding a new section to 31 read:

01 TRANSITION. (a) Litigation, hearings, investigations, and other proceedings 02 pending under a law amended or repealed by this Act, or in connection with functions 03 transferred by this Act, continue in effect and may be continued and completed, 04 notwithstanding a transfer, amendment, or repeal provided for in this Act. 05 (b) Certificates, orders, and regulations issued or adopted under authority of a law 06 amended or repealed by this Act remain in effect for the term issued, or until revoked, 07 vacated, or otherwise modified under the provisions of this Act. 08 (c) Contracts, rights, liabilities, and obligations created by or under a law amended or 09 repealed on July 1, 2005, by this Act and in effect on July 1, 2005, remain in effect. 10 Contracts, rights, liabilities, and obligations created by or under a law amended or repealed on 11 July 1, 2007, by this Act and in effect on July 1, 2007, remain in effect. 12 (d) Upon the initial appointment of the chief administrative law judge under 13 AS 44.64.010(c), added by sec. 2 of this Act, the chief administrative law judge and the 14 commissioner of administration, the commissioner of community and economic development, 15 the commissioner of revenue, and the governor's office shall identify administrative law 16 judges and support staff to be transferred to the office of administrative hearings on or after 17 January 1, 2005. A state employee who is transferred under this section from another agency 18 to the office of administrative hearings shall continue to be compensated at the same range 19 and step of the salary schedule in AS 39.27.011(a) that the employee was receiving before the 20 transfer, and qualifies for salary increases authorized under AS 39.27.011 and 39.27.022. 21 (e) Procedural regulations of an agency that refers an administrative hearing to the 22 office of administrative hearings shall apply to the hearing until regulations adopted under 23 AS 44.64.060(a), added by sec. 3 of this Act, become effective. 24 * Sec. 79. Sections 1, 2, 59, 77, and 78 of this Act take effect immediately under 25 AS 01.10.070(c). 26 * Sec. 80. Sections 67 and 74 of this Act take effect July 1, 2007. 27 * Sec. 81. Except as provided in secs. 79 and 80 of this Act, this Act takes effect July 1, 28 2005.