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HB 70: "An Act relating to the reorganization of certain functions of the division of banking, securities, and corporations and the division of occupational licensing in the Department of Commerce, Community, and Economic Development; and providing for an effective date."

00 HOUSE BILL NO. 70 01 "An Act relating to the reorganization of certain functions of the division of banking, 02 securities, and corporations and the division of occupational licensing in the Department 03 of Commerce, Community, and Economic Development; and providing for an effective 04 date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 08.13.215(c) is amended to read: 07 (c) The owner of a shop for tattooing and permanent cosmetic coloring or for 08 body piercing shall prominently display 09 (1) a copy of the statement provided by the board under 10 AS 08.13.030(b) that advises the public of the health risks and possible consequences 11 of tattooing and permanent cosmetic coloring or body piercing, as applicable; 12 (2) the names, addresses, and telephone numbers of the [DIVISION 13 OF OCCUPATIONAL LICENSING,] Department of Commerce, Community, and 14 Economic Development[,] and the Department of Environmental Conservation, and a

01 description of how a complaint about the shop or a practitioner in the shop may be 02 filed with either entity or with the board. 03 * Sec. 2. AS.08.24.260 is amended to read: 04 Sec. 08.24.260. Investigations. The department may upon its own motion, 05 and shall, upon the sworn complaint in writing of a customer of a collection agency, 06 investigate the actions of a licensee claimed to have violated this chapter and for that 07 purpose shall have free access to the offices and place of business and, if the 08 complaint involves customer accounts, to all pertinent books, accounts, records, 09 papers, files, safes, and vaults of the licensee or certificate holder. If the complaint 10 involves the owing of money, or any other thing of value, by a licensee to the 11 complainant, when the licensee raises the issue of an offset or counterclaim, the 12 department [DIVISION] may require the complainant to submit all records and data 13 in the complainant's possession pertaining to the offset or counterclaim. 14 * Sec. 3. AS 08.32.071 is amended to read: 15 Sec. 08.32.071. Renewal of registration. At least 60 days before expiration 16 of a licensee's registration certificate, the Department of Commerce, Community, 17 and Economic Development [DIVISION OF OCCUPATIONAL LICENSING] shall 18 mail a form for renewal of registration to each licensed dental hygienist. Each 19 licensee who wishes to renew a registration certificate shall complete the form and 20 return it with the appropriate fee and evidence of continued professional competence 21 as required by the board. The Department of Commerce, Community, and 22 Economic Development [DIVISION OF OCCUPATIONAL LICENSING] shall, as 23 soon as practicable, issue a registration certificate valid for a stated number of years. 24 Each licensee shall keep the registration certificate beside or attached to the licensee's 25 license. Failure to receive the registration form does not exempt a licensee from 26 renewing registration. 27 * Sec. 4. AS 08.36.190 is amended to read: 28 Sec. 08.36.190. Grading of examination. Upon the conclusion of the written 29 examination and as soon as practicable, the papers shall be rated by an examiner. The 30 examiner shall prepare a report in duplicate on each written examination and a report 31 in duplicate on each practical examination. The examiner shall forward one copy of

01 each report on each candidate to the secretary of the board and one copy to the 02 department [DIVISION OF OCCUPATIONAL LICENSING]. The secretary shall 03 prepare a composite report on each applicant and file one copy of that report with the 04 department [DIVISION OF OCCUPATIONAL LICENSING]. As soon as 05 practicable, the department [DIVISION OF OCCUPATIONAL LICENSING] shall 06 notify each candidate of the results of the examination. 07 * Sec. 5. AS 08.36.230 is amended to read: 08 Sec. 08.36.230. Practice outside the state. A dentist licensed to practice in 09 this state and residing and practicing dentistry outside this state may maintain 10 eligibility to practice in this state by registering the dentist's name and place of 11 residence with the department [DIVISION OF OCCUPATIONAL LICENSING] 12 every four years and submitting proof of continued professional competence as 13 required by the board. If the dentist fails to register, the board may reinstate the 14 dentist's license without examination upon payment of applicable fees established by 15 regulations adopted under AS 08.01.065, payment of a penalty established under 16 AS 08.01.100(b), presentation of proof of continued professional competence, and 17 presentation of proof of active practice certified by the dental board having 18 jurisdiction or, if there is no board with jurisdiction, by evidence satisfactory to the 19 board. 20 * Sec. 6. AS 08.36.250(a) is amended to read: 21 (a) At least 60 days before expiration of a licensee's registration certificate, the 22 department [DIVISION OF OCCUPATIONAL LICENSING] shall mail a form for 23 renewal of registration to each licensed dentist. A licensee who wishes to renew a 24 license shall complete the form and return it with the appropriate fee and evidence of 25 continued professional competence as required by the board. The department 26 [DIVISION OF OCCUPATIONAL LICENSING] shall, as soon as practicable, issue a 27 registration certificate valid for a stated number of years. A licensee shall keep the 28 registration certificate beside or attached to the licensee's license. Failure to receive 29 the registration form does not exempt a licensee from renewing registration. 30 * Sec. 7. AS 08.45.020 is amended to read: 31 Sec. 08.45.020. Application for license. A person desiring to practice

01 naturopathy shall apply in writing to the department [DIVISION OF 02 OCCUPATIONAL LICENSING OF THE DEPARTMENT OF COMMERCE, 03 COMMUNITY, AND ECONOMIC DEVELOPMENT]. 04 * Sec. 8. AS 08.45.030 is amended to read: 05 Sec. 08.45.030. Issuance of license. The department [DIVISION] shall 06 issue a license to practice naturopathy to an applicant who provides proof satisfactory 07 to the department [DIVISION] that the applicant has received a degree from an 08 accredited four-year college or university, and 09 (1) on or before December 31, 1987, has graduated from a school of 10 naturopathy that required four years of attendance at the school and after graduation 11 has received a license in another state after passing an examination for licensure in 12 that state and is licensed by a state at the time of application; or 13 (2) after December 31, 1987, has 14 (A) graduated from a school of naturopathy that required four 15 years of attendance at the school and at the time of graduation the school was 16 accredited or a candidate for accreditation by the Council on Naturopathic 17 Medical Education or a successor organization recognized by the United States 18 Department of Education; and 19 (B) passed the Naturopathic Physicians Licensing Examination. 20 * Sec. 9. AS 08.45.035(a) is amended to read: 21 (a) The department [DIVISION] shall issue a temporary license to practice 22 naturopathy to an applicant who has applied for and is qualified to take the next 23 Naturopathic Physicians Licensing Examination offered after the date of application 24 and provides proof satisfactory to the department [DIVISION] that the applicant 25 (1) meets the requirements of AS 08.45.030(2)(A); and 26 (2) has not previously failed the Naturopathic Physicians Licensing 27 Examination. 28 * Sec. 10. AS 08.45.060 is amended to read: 29 Sec. 08.45.060. Grounds for suspension, revocation, or refusal to issue a 30 license. The department [DIVISION] may, after a hearing, impose a disciplinary 31 sanction on a person licensed under this chapter when the department [DIVISION]

01 finds that the licensee 02 (1) secured a license through deceit, fraud, or intentional 03 misrepresentation; 04 (2) engaged in deceit, fraud, or intentional misrepresentation in the 05 course of providing professional services or engaging in professional activities; 06 (3) advertised professional services in a false or misleading manner; 07 (4) has been convicted of a felony or other crime that affects the 08 licensee's ability to continue to practice competently and safely; 09 (5) failed to comply with this chapter, with a regulation adopted under 10 this chapter, or with an order of the department [DIVISION]; 11 (6) continued to practice after becoming unfit due to 12 (A) professional incompetence; 13 (B) addiction or severe dependency on alcohol or a drug that 14 impairs the licensee's ability to practice safely; 15 (C) physical or mental disability; 16 (7) engaged in lewd or immoral conduct in connection with the 17 delivery of professional service to patients. 18 * Sec. 11. AS 08.45.070 is amended to read: 19 Sec. 08.45.070. Disciplinary sanctions. (a) When it finds that a licensee 20 under this chapter has violated AS 08.45.040 - 08.45.050 or is guilty of an offense 21 under AS 08.45.060, the department [DIVISION] may impose the following 22 sanctions singly or in combination: 23 (1) permanently revoke the license to practice; 24 (2) suspend the license for a determinate period of time; 25 (3) censure the licensee; 26 (4) issue a letter of reprimand to the licensee; 27 (5) place the licensee on probationary status and require the licensee to 28 (A) report regularly to the department [DIVISION] upon 29 matters involving the basis of probation; 30 (B) limit practice to those areas prescribed; 31 (C) continue professional education until a satisfactory degree

01 of skill has been attained in areas determined by the department [DIVISION] 02 to need improvement; 03 (6) impose limitations or conditions on the practice of the licensee. 04 (b) The department [DIVISION] may withdraw probationary status of a 05 licensee if it finds that the deficiencies that required the sanction have been remedied. 06 (c) The department [DIVISION] may summarily suspend a license before 07 final hearing or during the appeals process if the department [DIVISION] finds that 08 the licensee poses a clear and immediate danger to the public health and safety if the 09 licensee continues to practice. A licensee whose license is suspended under this 10 section is entitled to a hearing by the department [DIVISION] no later than seven 11 days after the effective date of the order. The licensee may appeal the suspension after 12 a hearing to a court of competent jurisdiction. 13 * Sec. 12. AS 08.45.070(c), as amended by sec. 14, ch. 163, SLA 2004, is further amended 14 to read: 15 (c) The department [DIVISION] may summarily suspend a license before 16 final hearing or during the appeals process if the department [DIVISION] finds that 17 the licensee poses a clear and immediate danger to the public health and safety if the 18 licensee continues to practice. A licensee whose license is suspended under this 19 section is entitled to a hearing conducted by the office of administrative hearings 20 (AS 44.64.010) not later than seven days after the effective date of the order. The 21 licensee may appeal the suspension after a hearing to a court of competent jurisdiction. 22 * Sec. 13. AS 08.45.200 is amended by adding a new paragraph to read: 23 (4) "department" means the Department of Commerce, Community, 24 and Economic Development. 25 * Sec. 14. AS 08.64.050 is amended to read: 26 Sec. 08.64.050. Oath of office. Each member shall take an oath of office. 27 The oath shall be filed and preserved in the [DIVISION OF OCCUPATIONAL 28 LICENSING OF THE] department. 29 * Sec. 15. AS 10.13.810(b) is amended to read: 30 (b) The department may appoint as conservator one of the employees of the 31 [DIVISION OF BANKING, SECURITIES, AND CORPORATIONS OF THE]

01 department or another competent and disinterested person. The department 02 [DIVISION] shall be reimbursed out of the assets of the conservatorship for all money 03 expended by the department [DIVISION] in connection with the conservatorship. 04 Upon the approval of the department, the expenses of the conservatorship paid for by 05 the department [DIVISION] shall be paid out of the assets of the licensee. Payment 06 of the department [DIVISION] expenses shall take priority over other payments from 07 the assets and shall be fully paid before a final distribution is made. 08 * Sec. 16. AS 10.20.530 is amended to read: 09 Sec. 10.20.530. Service on commissioner. When a foreign corporation 10 authorized to transact business in the state, or not authorized to transact business in the 11 state but doing so, fails to appoint or maintain a registered agent in the state, or when a 12 registered agent cannot with reasonable diligence be found at the registered office, or 13 when the certificate of authority of a foreign corporation is suspended or revoked, the 14 commissioner is an agent upon whom process, notice, or demand may be served. 15 Service on the commissioner shall be made by delivering to and leaving with the 16 commissioner, or the commissioner's [A] designee [IN THE CORPORATION 17 DIVISION OF THE DEPARTMENT], duplicate copies of the process, notice or 18 demand, accompanied by a fee established by the department by regulation. The 19 commissioner shall immediately have one copy forwarded by registered or certified 20 mail, addressed to the corporation at its principal office in the state or country under 21 whose laws it is incorporated. Service on the commissioner is returnable in not less 22 than 30 days. 23 * Sec. 17. AS 13.36.145(b) is amended to read: 24 (b) The separate fund of securities required by (a)(2) of this section shall be 25 marked as a separate fund for (a)(2) of this section. Withdrawals from or additions to 26 the separate fund may be made from time to time, as long as the required value is 27 maintained. The income of the securities in the separate fund belongs to the corporate 28 trustee. In the statements of its financial condition published or delivered to the 29 [DIVISION OF BANKING, SECURITIES, AND CORPORATIONS IN THE] 30 Department of Commerce, Community, and Economic Development, the corporate 31 trustee shall show as separate items the amount of trust funds that it has deposited with

01 itself and the amount of securities that it holds as security for the payment of the 02 deposits. 03 * Sec. 18. AS 18.18.100(n) is amended to read: 04 (n) A hospice program may not use a direct service provider whose name is 05 listed on an abuse registry maintained by the Department of Commerce, Community, 06 and Economic Development [, DIVISION OF OCCUPATIONAL LICENSING]. A 07 hospice program shall contact that department [THE DIVISION] for a determination 08 of whether a prospective direct service provider's name is on an abuse registry 09 maintained by that department [THE DIVISION] and may not allow the person to 10 provide hospice services until that department [THE DIVISION] has responded to 11 the inquiry. The Department of Commerce, Community, and Economic Development 12 may adopt regulations to implement this subsection. 13 * Sec. 19. AS 34.80.090(4) is amended to read: 14 (4) "financial institution" means a financial institution 15 (A) whose accounts are insured by an agency of the federal 16 government; 17 (B) that is located in this state and does not meet the 18 requirements of (A) of this paragraph, but is subject to regulation by the 19 [DIVISION OF BANKING, SECURITIES AND CORPORATIONS IN THE] 20 Department of Commerce, Community, and Economic Development; or 21 (C) that is located in another state and does not meet the 22 requirements of (A) of this paragraph, but is subject to regulation in the other 23 state by an agency comparable to the [DIVISION OF BANKING, 24 SECURITIES AND CORPORATIONS IN THE] Department of Commerce, 25 Community, and Economic Development; 26 * Sec. 20. AS 37.05.146(c)(34) is amended to read: 27 (34) receipts of the [DIVISION OF THE] Department of Commerce, 28 Community, and Economic Development relating to [THAT REGULATES] banking, 29 securities, and corporations functions; 30 * Sec. 21. AS 40.25.110(e) is amended to read: 31 (e) Notwithstanding other provisions of this section to the contrary, the Bureau

01 of Vital Statistics and the library archives in the Department of Education and Early 02 Development may continue to charge the same fees that they were charging on 03 September 25, 1990, for performing record searches, and may increase the fees as 04 necessary to recover agency expenses on the same basis that was used by the agency 05 immediately before September 25, 1990. Notwithstanding other provisions of this 06 section to the contrary, regarding banking, securities, and corporations matters the 07 [DIVISION OF BANKING, SECURITIES, AND CORPORATIONS IN THE] 08 Department of Commerce, Community, and Economic Development may continue to 09 charge the same fees that the former Department of Commerce and Economic 10 Development was charging on July 1, 1999, for performing record searches and may 11 increase the fees as necessary to recover agency expenses on the same basis that was 12 used by the former Department of Commerce and Economic Development 13 immediately before July 1, 1999. 14 * Sec. 22. AS 46.03.375(a) is amended to read: 15 (a) The department shall adopt regulations governing the certification of 16 persons who install, test, close, repair, or significantly change the configuration of 17 underground petroleum storage tanks and tank systems. The certification program 18 shall be administered by the [DIVISION OF OCCUPATIONAL LICENSING,] 19 Department of Commerce, Community, and Economic Development. In consultation 20 with the Department of Environmental Conservation, the Department of Commerce, 21 Community, and Economic Development [DIVISION] shall make every reasonable 22 attempt to ensure that opportunities for obtaining certification under this section are 23 available throughout the state. The Department of Commerce, Community, and 24 Economic Development [DIVISION] shall organize presentation of national training 25 courses that are available in the state and assist residents of isolated communities who 26 request assistance in becoming certified. The Department of Commerce, 27 Community, and Economic Development [DIVISION] may contract with the 28 University of Alaska, a vocational technical school, or a regional nonprofit 29 organization to provide the education and testing necessary for certification. 30 * Sec. 23. AS 46.03.375(b) is amended to read: 31 (b) The Department of Commerce, Community, and Economic

01 Development [DIVISION] shall establish fees applicable to certification under this 02 section in an amount necessary to cover the costs of the certification program. The 03 fees shall be collected by the Department of Commerce, Community, and 04 Economic Development [DIVISION]. 05 * Sec. 24. AS 08.45.200(2) and AS 46.03.375(g)(2) are repealed. 06 * Sec. 25. Section 12 of this Act takes effect July 1, 2005. 07 * Sec. 26. Except as provided in sec. 25 of this Act, this Act takes effect immediately under 08 AS 01.10.070(c).