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HB 362: "An Act transferring duties among departments in the executive branch of state government; relating to the duties of the Department of Commerce, Community, and Economic Development; relating to the duties of the Department of Revenue; and providing for an effective date."

00 HOUSE BILL NO. 362 01 "An Act transferring duties among departments in the executive branch of state 02 government; relating to the duties of the Department of Commerce, Community, and 03 Economic Development; relating to the duties of the Department of Revenue; and 04 providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 06.01.050(1) is amended to read: 07 (1) "commissioner" means the commissioner of revenue 08 [COMMERCE, COMMUNITY, AND ECONOMIC DEVELOPMENT] or a designee 09 of the commissioner; 10 * Sec. 2. AS 06.01.050(2) is amended to read: 11 (2) "department" means the Department of Revenue [COMMERCE, 12 COMMUNITY, AND ECONOMIC DEVELOPMENT]; 13 * Sec. 3. AS 06.05.473(c) is amended to read: 14 (c) A safe deposit box whose contents have not been removed within 30 days

01 after demand shall be opened. The department shall retain the contents of the box and 02 the other unclaimed property held by the bank as bailee until the conclusion of the 03 liquidation proceedings. At the conclusion of the liquidation proceedings, the property 04 held by the department under this subsection is considered abandoned, and the 05 department shall handle [TURN] the property [OVER TO THE DEPARTMENT OF 06 REVENUE FOR HANDLING] under AS 34.45.110 - 34.45.780. 07 * Sec. 4. AS 06.05.990(7) is amended to read: 08 (7) "commissioner" means the commissioner of revenue 09 [COMMERCE, COMMUNITY, AND ECONOMIC DEVELOPMENT] or a designee 10 of the commissioner; 11 * Sec. 5. AS 06.05.990(9) is amended to read: 12 (9) "department" means the Department of Revenue [COMMERCE, 13 COMMUNITY, AND ECONOMIC DEVELOPMENT]; 14 * Sec. 6. AS 06.10.030 is amended to read: 15 Sec. 06.10.030. Filing statement. Before engaging in this state in any of the 16 activities specified in AS 06.10.020, a foreign bank shall execute and file with the 17 commissioner of revenue [COMMERCE, COMMUNITY, AND ECONOMIC 18 DEVELOPMENT] a statement. The statement shall list its name, state of 19 incorporation or organization and principal place of business and shall appoint 20 irrevocably the commissioner of revenue [COMMERCE, COMMUNITY, AND 21 ECONOMIC DEVELOPMENT] and the commissioner's successors its agents on 22 [UPON] whom may be served process against it in any proceeding or cause of action 23 arising out of its engaging in this state in any of the activities referred to in 24 AS 06.10.020. Until the statement is filed the immunities provided by this chapter do 25 not become operative, but failure to file the statement has no other effect. 26 * Sec. 7. AS 06.15.010 is amended to read: 27 Sec. 06.15.010. Declaration of policy. In providing authority for the 28 establishment of mutual savings banks it is the intent of the legislature to make 29 available the benefits of mutual savings banking, thereby encouraging the practice of 30 thrift and promoting the accumulation of funds for investment to develop the 31 economy. For the accomplishment of these purposes, the legislature intends by this

01 chapter to vest in mutual banks those powers generally possessed by state-chartered 02 mutual savings banks and to grant authority to the Department of Revenue 03 [COMMERCE, COMMUNITY, AND ECONOMIC DEVELOPMENT] to define 04 powers and to adopt regulations designed to enable mutual savings banks to perform 05 their functions and to carry out the above purposes, subject to the provisions of 06 AS 06.05 (Alaska Banking Code) that are not inconsistent with this chapter. 07 * Sec. 8. AS 06.15.370(2) is amended to read: 08 (2) "department" means the Department of Revenue [COMMERCE, 09 COMMUNITY, AND ECONOMIC DEVELOPMENT]; 10 * Sec. 9. AS 06.20.900(1) is amended to read: 11 (1) "commissioner" means the commissioner of revenue 12 [COMMERCE, COMMUNITY, AND ECONOMIC DEVELOPMENT] or a designee 13 of the commissioner; 14 * Sec. 10. AS 06.20.900(2) is amended to read: 15 (2) "department" means the Department of Revenue [COMMERCE, 16 COMMUNITY, AND ECONOMIC DEVELOPMENT]; 17 * Sec. 11. AS 06.26.790(c) is amended to read: 18 (c) A safe deposit box whose contents have not been removed within 30 days 19 after demand shall be opened. The department shall retain the contents of the box and 20 the other unclaimed property held by the trust company as bailee until the conclusion 21 of the liquidation proceedings. At the conclusion of the liquidation proceedings under 22 this section, the property held by the department under this subsection is considered 23 abandoned, and the department shall handle [DELIVER] the property [TO THE 24 DEPARTMENT OF REVENUE] under AS 34.45.110 - 34.45.780. 25 * Sec. 12. AS 06.26.790(j) is amended to read: 26 (j) Unclaimed property remaining after the completion of the liquidation 27 proceedings under this section is presumed abandoned, and the department shall 28 handle the property [SHALL BE DELIVERED TO THE DEPARTMENT OF 29 REVENUE FOR HANDLING] under AS 34.45.110 - 34.45.780. 30 * Sec. 13. AS 06.26.990(5) is amended to read: 31 (5) "commissioner" means the commissioner of revenue

01 [COMMERCE, COMMUNITY, AND ECONOMIC DEVELOPMENT]; 02 * Sec. 14. AS 06.26.990(7) is amended to read: 03 (7) "department" means the Department of Revenue [COMMERCE, 04 COMMUNITY, AND ECONOMIC DEVELOPMENT]; 05 * Sec. 15. AS 06.35.010(d) is amended to read: 06 (d) The Department of Revenue [COMMERCE, COMMUNITY, AND 07 ECONOMIC DEVELOPMENT] may adopt regulations under AS 44.62 08 (Administrative Procedure Act) to implement this section. 09 * Sec. 16. AS 06.40.190(1) is amended to read: 10 (1) "commissioner" means the commissioner of revenue 11 [COMMERCE, COMMUNITY, AND ECONOMIC DEVELOPMENT] or a designee 12 of the commissioner; 13 * Sec. 17. AS 06.40.190(2) is amended to read: 14 (2) "department" means the Department of Revenue [COMMERCE, 15 COMMUNITY, AND ECONOMIC DEVELOPMENT]; 16 * Sec. 18. AS 06.45.400(1) is amended to read: 17 (1) "commissioner" means the commissioner of revenue 18 [COMMERCE, COMMUNITY, AND ECONOMIC DEVELOPMENT]; 19 * Sec. 19. AS 06.50.900(5) is amended to read: 20 (5) "department" means the Department of Revenue [COMMERCE, 21 COMMUNITY, AND ECONOMIC DEVELOPMENT]; 22 * Sec. 20. AS 06.55.990(7) is amended to read: 23 (7) "department" means the Department of Revenue [COMMERCE, 24 COMMUNITY, AND ECONOMIC DEVELOPMENT]; 25 * Sec. 21. AS 06.60.990(5) is amended to read: 26 (5) "department" means the Department of Revenue [COMMERCE, 27 COMMUNITY, AND ECONOMIC DEVELOPMENT]; 28 * Sec. 22. AS 09.38.025(b) is amended to read: 29 (b) A judgment creditor or other claimant of an insurer may not levy upon any 30 of the assets or securities held in this state as a deposit for the protection of the 31 insurer's policyholders or policyholders and creditors. Deposits under AS 21.09.270

01 may be levied upon if provided in the order of the director of insurance, Department of 02 Revenue [COMMERCE, COMMUNITY, AND ECONOMIC DEVELOPMENT], 03 under which the deposit is made. 04 * Sec. 23. AS 18.45.030 is amended to read: 05 Sec. 18.45.030. Conduct of studies concerning changes in laws and 06 regulations with a view to atomic industrial development. Each of the following 07 departments and agencies of the state are directed to initiate and to pursue continuing 08 studies as to the need for changes in the laws and regulations administered by it that 09 would arise from the presence within the state of special nuclear, by-product, and 10 radioactive materials, from the operation of production or utilization facilities, and 11 from the generation of radiation, and, on the basis of these studies, to make the 12 recommendations for the enactment of laws or amendments to law administered by it, 13 and the proposals for amendments to the regulations issued by it that it considers 14 necessary: 15 (1) the Department of Health and Social Services particularly as to 16 hazards to the public health and safety; 17 (2) the Department of Labor and Workforce Development particularly 18 as to hazardous working conditions; 19 (3) the Department of Labor and Workforce Development particularly 20 as to the time and character of proof of claims of injuries and the extent of the 21 compensation allowable; 22 (4) the Department of Transportation and Public Facilities particularly 23 as to the transportation of special nuclear, by-product, and radioactive materials on 24 highways of the state; 25 (5) the Department of Transportation and Public Facilities particularly 26 as to the transportation of special nuclear, by-product, and radioactive materials by 27 common carriers not in interstate commerce and as to the participation by public 28 utilities subject to its jurisdiction in projects for the development of production or 29 utilization facilities for industrial or commercial use; 30 (6) the Department of Revenue [COMMERCE, COMMUNITY, AND 31 ECONOMIC DEVELOPMENT] particularly as to the insurance of persons and

01 property from hazards to life and property resulting from atomic development; 02 (7) the Department of Fish and Game particularly as to the hazards to 03 the natural resources of the state, including wildlife, and as to the protection of rivers, 04 streams, and airspace from pollution; 05 (8) the Department of Natural Resources particularly as to the hazards 06 involved in the mining of radioactive minerals; 07 (9) departments and agencies the governor directs and for the purposes 08 specified by the governor, and other departments and agencies provided by law. 09 * Sec. 24. AS 18.60.340(b) is amended to read: 10 (b) A company authorized by the Department of Revenue [COMMERCE, 11 COMMUNITY, AND ECONOMIC DEVELOPMENT] under AS 21.09 to insure 12 boilers or unfired pressure vessels shall notify the Department of Labor and 13 Workforce Development each time it discontinues the insurance for a boiler or unfired 14 pressure vessel located in the state. The Department of Labor and Workforce 15 Development shall terminate the inspection certificate and require a reinspection if the 16 insurance was terminated because of a condition dangerous to life or property. 17 * Sec. 25. AS 21.06.010 is amended to read: 18 Sec. 21.06.010. Appointment of director. The commissioner of revenue 19 [COMMERCE, COMMUNITY, AND ECONOMIC DEVELOPMENT] shall appoint 20 the director, division of insurance, Department of Revenue [COMMERCE, 21 COMMUNITY, AND ECONOMIC DEVELOPMENT]. The director serves at the 22 pleasure of the commissioner. 23 * Sec. 26. AS 21.06.020 is amended to read: 24 Sec. 21.06.020. Division of insurance. (a) There is created within the 25 Department of Revenue [COMMERCE, COMMUNITY, AND ECONOMIC 26 DEVELOPMENT] a division of insurance [, WHICH SHALL BE LOCATED IN OR 27 CONVENIENT TO THE OFFICE OCCUPIED BY THE COMMISSIONER OF 28 COMMERCE, COMMUNITY, AND ECONOMIC DEVELOPMENT]. 29 (b) The division of insurance shall be under the administrative control of the 30 commissioner of revenue [COMMERCE, COMMUNITY, AND ECONOMIC 31 DEVELOPMENT] and the supervision of the director of the division of insurance.

01 * Sec. 27. AS 21.09.242(a) is amended to read: 02 (a) An insurer, including a pharmacy benefits manager, with respect to 03 medical assistance programs under AS 47.07, shall cooperate with the Department of 04 Health and Social Services to 05 (1) provide, with respect to an individual who is eligible for or is 06 provided medical assistance under AS 47.07, on the request of the Department of 07 Health and Social Services [DEPARTMENT], information to determine during what 08 period the individual or the individual's spouse or dependents may be or may have 09 been covered by the insurer and the nature of the coverage that is or was provided by 10 the insurer, including the name and address of the insurer and the identifying number 11 of the health care insurance plan; 12 (2) accept the [DEPARTMENT'S] right of recovery of the 13 Department of Health and Social Services and the assignment to the Department of 14 Health and Social Services [DEPARTMENT] of any right of an individual or other 15 entity to payment from the party for an item or service for which payment has been 16 made under AS 47.07; 17 (3) respond to any inquiry by the Department of Health and Social 18 Services [DEPARTMENT] regarding a claim for payment for any health care item or 19 service that is submitted not later than three years after the date of the provision of the 20 health care item or service; and 21 (4) agree not to deny a claim submitted by the Department of Health 22 and Social Services [DEPARTMENT] solely on the basis of the date of submission 23 of the claim, the type or format of the claim form, or a failure to present proper 24 documentation at the point-of-sale that is the basis of the claim if 25 (A) the claim is submitted by the Department of Health and 26 Social Services [DEPARTMENT] within the three-year period beginning on 27 the date on which the item or service was furnished; and 28 (B) any action by the Department of Health and Social 29 Services [DEPARTMENT] to enforce its rights with respect to the claim is 30 commenced within six years after the [DEPARTMENT'S] submission of the 31 claim by the Department of Health and Social Services.

01 * Sec. 28. AS 21.78.295 is amended to read: 02 Sec. 21.78.295. Unclaimed and withheld money. (a) All unclaimed money 03 that is subject to distribution and remains in the receiver's hands when the receiver is 04 ready to apply to the court for discharge, including the amount distributable to a 05 creditor, shareholder, member, or other person who is unknown and cannot be found, 06 shall be deposited with the department [DEPARTMENT OF REVENUE] and shall 07 be paid, without interest, to the person entitled to receive it or to the person's legal 08 representative upon proof satisfactory to the department [DEPARTMENT OF 09 REVENUE] of the person's right to it. Notwithstanding the provisions of AS 34.45, an 10 amount on deposit with the department [DEPARTMENT OF REVENUE] that is not 11 claimed within six years after the discharge of the receiver is considered to be 12 abandoned and shall, without further proceedings, be deposited in the general fund. 13 (b) All money retained for claims described in AS 21.78.280 and not 14 distributed, shall, upon discharge of the receiver, be deposited with the department 15 [DEPARTMENT OF REVENUE] and paid in accordance with AS 21.78.260. Any 16 amount remaining that, under AS 21.78.260, would revert to the undistributed assets 17 of the insurer, shall be transferred to the department [DEPARTMENT OF 18 REVENUE]. Remaining amounts become the property of the state under (a) of this 19 section, unless the director, in the director's discretion, petitions the court to reopen the 20 liquidation under AS 21.78.297. 21 * Sec. 29. AS 21.97.900(9) is amended to read: 22 (9) "commissioner" means the commissioner of revenue 23 [COMMERCE, COMMUNITY, AND ECONOMIC DEVELOPMENT]; 24 * Sec. 30. AS 21.97.900(12) is amended to read: 25 (12) "division" means the division of insurance, Department of 26 Revenue [COMMERCE, COMMUNITY, AND ECONOMIC DEVELOPMENT]; 27 * Sec. 31. AS 21.97.900 is amended by adding a new paragraph to read: 28 (47) "department" means the Department of Revenue. 29 * Sec. 32. AS 23.30.280(e) is amended to read: 30 (e) Except as provided in (f) of this section, a person is not liable for civil 31 damages for filing a report concerning a suspected, anticipated, or completed

01 fraudulent act or a false or misleading statement or representation with, or for 02 furnishing other information, whether written or oral, concerning a suspected, 03 anticipated, or completed fraudulent act or false or misleading statements or 04 representation to 05 (1) law enforcement officials or their agents and employees; 06 (2) the division of workers' compensation, the division of insurance in 07 the Department of Revenue [COMMERCE, COMMUNITY, AND ECONOMIC 08 DEVELOPMENT], or an agency in another state that regulates insurance or workers' 09 compensation; 10 (3) an insurer or adjuster or its agents, employees, or designees, or the 11 risk manager of a self-insured employer under this chapter. 12 * Sec. 33. AS 28.20.580 is amended to read: 13 Sec. 28.20.580. Assigned risk plans. After consultation with the insurance 14 companies authorized to issue motor vehicle liability policies in this state, the director 15 of the division of insurance shall approve a reasonable plan, fair to the insurers and 16 equitable to their policyholders, for the apportionment among these companies of 17 applicants for motor vehicle policies and other vehicle coverages who are in good faith 18 entitled to but are unable to procure policies through ordinary methods. When a plan is 19 approved, all the insurance companies shall subscribe to it and participate in it, except 20 a reciprocal insurer formed by and only insuring a group of municipalities or nonprofit 21 utilities under AS 21.75, or a reciprocal insurer formed under AS 21.75 to provide 22 marine insurance. An applicant for an assigned risk policy, a person insured under an 23 assigned risk plan, and an insurance company affected may appeal to the 24 commissioner of revenue [COMMERCE, COMMUNITY, AND ECONOMIC 25 DEVELOPMENT] from a ruling or decision of the authority designated to operate the 26 plan. Failure to adopt an assigned risk plan does not relieve any person from 27 responsibility under this chapter. 28 * Sec. 34. AS 31.25.010 is amended to read: 29 Sec. 31.25.010. Structure. The Alaska Gasline Development Corporation is a 30 public corporation and government instrumentality acting in the best interest of the 31 state for the purposes required by AS 31.25.005, located for administrative purposes in

01 the Department of Revenue [COMMERCE, COMMUNITY, AND ECONOMIC 02 DEVELOPMENT], but having a legal existence independent of and separate from the 03 state. The corporation may not be terminated as long as it has bonds, notes, or other 04 obligations outstanding. The corporation may dissolve when no bonds, notes, or other 05 obligations of the corporation or a subsidiary of the corporation are outstanding and 06 the corporation or a subsidiary of the corporation is no longer engaged in the 07 development, financing, construction, or operation of an in-state natural gas pipeline 08 or an Alaska liquefied natural gas project. Upon termination of the corporation, its 09 rights and property pass to the state. 10 * Sec. 35. AS 37.05.146(b)(33) is amended to read: 11 (33) receipts of the Department of Revenue [COMMERCE, 12 COMMUNITY, AND ECONOMIC DEVELOPMENT], division of insurance, from 13 license fees and fees for services; 14 * Sec. 36. AS 37.05.146(b)(34) is amended to read: 15 (34) receipts of the Department of Commerce, Community, and 16 Economic Development from its functions relating to [BANKING,] securities [,] and 17 corporations; 18 * Sec. 37. AS 37.05.146(b) is amended by adding a new paragraph to read: 19 (88) receipts of the Department of Revenue from its functions relating 20 to banking. 21 * Sec. 38. AS 39.25.110(30) is amended to read: 22 (30) a person employed as an actuary or assistant actuary by the 23 division of insurance in the Department of Revenue [COMMERCE, COMMUNITY, 24 AND ECONOMIC DEVELOPMENT]; 25 * Sec. 39. AS 39.25.120(c) is amended to read: 26 (c) The following positions in the state service constitute the partially exempt 27 service: 28 (1) deputy and assistant commissioners of the principal departments of 29 the executive branch, including the assistant adjutant general of the Department of 30 Military and Veterans' Affairs; 31 (2) the directors of the major divisions of the principal departments of

01 the executive branch and the regional directors of the Department of Transportation 02 and Public Facilities; 03 (3) attorney members of the staff of the Department of Law, of the 04 public defender agency, and of the office of public advocacy in the Department of 05 Administration; 06 (4) one private secretary for each head of a principal department in the 07 executive branch; 08 (5) employees of councils, boards, or commissions established by 09 statute in the Office of the Governor or the office of the lieutenant governor, unless a 10 different classification is provided by statute; 11 (6) not more than two special assistants to the commissioner of each of 12 the principal departments of the executive branch, but the number may be increased if 13 the partially exempt service is extended under AS 39.25.130 to include the additional 14 special assistants; 15 (7) the principal executive officer of the following boards, councils, or 16 commissions: 17 (A) Alaska Public Broadcasting Commission; 18 (B) Professional Teaching Practices Commission; 19 (C) Parole Board; 20 (D) Board of Nursing; 21 (E) Real Estate Commission; 22 (F) Alaska Royalty Oil and Gas Development Advisory Board; 23 (G) Alaska State Council on the Arts; 24 (H) Alaska Police Standards Council; 25 (I) Alaska Commission on Aging; 26 (J) Alaska Mental Health Board; 27 (K) State Medical Board; 28 (L) Governor's Council on Disabilities and Special Education; 29 (M) Advisory Board on Alcoholism and Drug Abuse; 30 (N) Statewide Suicide Prevention Council; 31 (O) State Board of Registration for Architects, Engineers, and

01 Land Surveyors; 02 (P) Alaska Health Care Commission; 03 (8) Alaska Pioneers' Home and Alaska Veterans' Home managers; 04 (9) hearing examiners in the Department of Revenue; 05 (10) the comptroller in the division of treasury, Department of 06 Revenue; 07 (11) airport managers in the Department of Transportation and Public 08 Facilities employed at the Anchorage and Fairbanks International Airports; 09 (12) the deputy director of the division of insurance in the Department 10 of Revenue [COMMERCE, COMMUNITY, AND ECONOMIC DEVELOPMENT]; 11 (13) the executive director and staff of the Alaska Public Offices 12 Commission; 13 (14) the rehabilitation administrator of the division of workers' 14 compensation; 15 (15) guards employed by the Department of Public Safety for 16 emergencies; 17 (16) marine pilot coordinator of the Board of Marine Pilots; 18 (17) guards employed by the Department of Corrections, other than in 19 state correctional facilities, to carry out the responsibility of the commissioner of 20 corrections under AS 33.30.071(b); 21 (18) hearing officers and administrative law judges of the Regulatory 22 Commission of Alaska; 23 (19) the compact administrator appointed under AS 33.36.130; 24 (20) the chief administrative law judge and administrative law judges 25 of the office of administrative hearings; 26 (21) the executive secretary of the Board of Public Accountancy. 27 * Sec. 40. AS 40.25.110(e) is amended to read: 28 (e) Notwithstanding other provisions of this section to the contrary, the Bureau 29 of Vital Statistics and the library archives in the Department of Education and Early 30 Development may continue to charge the same fees that they were charging on 31 September 25, 1990, for performing record searches, and may increase the fees as

01 necessary to recover agency expenses on the same basis that was used by the agency 02 immediately before September 25, 1990. Notwithstanding other provisions of this 03 section to the contrary, the Department of Commerce, Community, and Economic 04 Development may continue to charge the same fees that the former Department of 05 Commerce and Economic Development was charging on July 1, 1999, for performing 06 record searches for matters related to [BANKING,] securities [,] and corporations, and 07 may increase the fees as necessary to recover agency expenses on the same basis that 08 was used by the former Department of Commerce and Economic Development 09 immediately before July 1, 1999. Notwithstanding other provisions of this section 10 to the contrary, the Department of Revenue may charge the same fees that the 11 Department of Commerce, Community, and Economic Development was 12 charging on the effective date of this section for performing record searches for 13 matters related to banking immediately before the effective date of this section. 14 * Sec. 41. AS 44.25.020 is amended to read: 15 Sec. 44.25.020. Duties of department. The Department of Revenue shall 16 (1) enforce the tax laws of the state; 17 (2) collect, account for, have custody of, invest, and manage all state 18 funds and all revenues of the state except revenues incidental to a program of licensing 19 and regulation carried on by another state department, funds managed and invested by 20 the Alaska Retirement Management Board, and as otherwise provided by law; 21 (3) invest and manage the balance of the power development fund in 22 accordance with AS 44.83.386; 23 (4) administer the surety bond program for licensure as a fish 24 processor or primary fish buyer; 25 (5) enforce state laws regarding banking and insurance. 26 * Sec. 42. AS 44.33.020(a) is amended to read: 27 (a) The Department of Commerce, Community, and Economic Development 28 shall 29 (1) advise and assist local governments; 30 (2) advise the governor and other commissioners on the delivery of 31 government services to rural areas, including services relating to public safety, justice,

01 economic development, natural resource management, education, and public health; 02 (3) make recommendations to the governor and other commissioners 03 about policy changes that would affect rural governments and rural affairs; 04 (4) serve as staff for the Local Boundary Commission; 05 (5) conduct studies and carry out experimental and pilot projects for 06 the purpose of developing solutions to community and regional problems; 07 (6) promote cooperative solutions to problems affecting more than one 08 community or region, including joint service agreements, regional compacts, and other 09 forms of cooperation; 10 (7) serve as a clearinghouse for information useful in solution of 11 community and regional problems, and channel to the appropriate authority requests 12 for information and services; 13 (8) advise and assist community and regional governments on matters 14 of finance, including but not limited to bond marketing and procurement of federal 15 funds; 16 (9) prepare suggested guidelines relating to the content of notice of 17 bond sale advertisements, prospectuses, and other bonding matters issued by local 18 governments; 19 (10) administer state funds appropriated for the benefit of unorganized 20 regions within the state, allowing for maximum participation by local advisory 21 councils and similar bodies; 22 (11) as assigned through a delegation by the governor, administer and 23 implement the state's role in the federal community development quota program 24 established under 16 U.S.C. 1855(i) or a successor federal program; the department 25 may adopt regulations under a delegation from the governor to implement duties under 26 this paragraph; 27 (12) carry out those administrative functions in the unorganized 28 borough that the legislature may prescribe; 29 (13) study existing and proposed laws and state activities that affect 30 community and regional affairs and submit to the governor recommended changes in 31 those laws and activities;

01 (14) coordinate activities of the state that affect community and 02 regional affairs; 03 (15) assist in the development of new communities and serve as the 04 agent of the state for purposes of participation in federal programs relating to new 05 communities; 06 (16) supervise planning, management, and other activities required for 07 local eligibility for financial aid under those federal and state programs that provide 08 assistance to community and regional governments; 09 (17) advise and assist municipalities on procedures of assessment, 10 valuation, and taxation, and notify municipalities of major errors in those procedures; 11 (18) apply for, receive, and use funds from federal and other sources, 12 public or private, for use in carrying out the powers and duties of the department; 13 (19) request and utilize the resources of other agencies of state 14 government in carrying out the purposes of this chapter to the extent such utilization is 15 more efficient than maintaining departmental staff, reimbursing the other agencies 16 when appropriate; 17 (20) administer state and, as appropriate, federal programs for revenue 18 sharing, grants, and other forms of financial assistance to community and regional 19 governments; 20 (21) administer the state programs relating to commerce or community 21 development, enforce the laws relating to these programs, and adopt regulations under 22 these laws; 23 (22) register corporations; 24 (23) collect corporation franchise taxes; 25 (24) enforce state laws regulating public utilities and other public 26 service enterprises, [BANKING AND] securities, [INSURANCE,] and other 27 businesses and enterprises touched with a public interest; 28 (25) make veterans' loans; 29 (26) furnish the budgeting, clerical, and administrative services for 30 regulatory agencies and professional and occupational licensing boards not otherwise 31 provided for;

01 (27) conduct studies, enter into contracts and agreements, and make 02 surveys relating to the economic development of the state and, when appropriate, 03 assemble, analyze, and disseminate the findings obtained; 04 (28) provide factual information and technical assistance for potential 05 industrial and commercial investors; 06 (29) receive gifts, grants, and other aid that facilitate the powers and 07 duties of the department from agencies and instrumentalities of the United States or 08 other public or private sources; 09 (30) establish and activate programs to achieve balanced economic 10 development in the state and advise the governor on economic development policy 11 matters; 12 (31) formulate a continuing program for basic economic development 13 and for the necessary promotion, planning, and research that will advance the 14 economic development of the state; 15 (32) cooperate with private, governmental, and other public institutions 16 and agencies in the execution of economic development programs; 17 (33) review the programs and annual reports of other departments and 18 agencies as they are related to economic development and prepare an annual report on 19 the economic growth of the state; 20 (34) administer the economic development programs of the state; 21 (35) perform all other duties and powers necessary or proper in 22 relation to economic development and planning for the state; 23 (36) request tourism-related businesses in the state to provide data 24 regarding occupancy levels, traffic flow and gross receipts and to participate in visitor 25 surveys conducted by the department; data collected under this paragraph that 26 discloses the particulars of an individual business is not a matter of public record and 27 shall be kept confidential; however, this restriction does not prevent the department 28 from using the data to formulate tourism economic impact information including 29 expenditure patterns, tax receipts and fees, employment and income attributable to 30 tourism, and other information considered relevant to the planning, evaluation, and 31 policy direction of tourism in the state;

01 (37) provide administrative and budgetary services to the Real Estate 02 Commission under AS 08.88 as requested by the commission; 03 (38) sell at cost, to the extent possible, publications and promotional 04 materials developed by the department; 05 (39) as delegated by the governor, administer under 16 U.S.C. 1856 06 the internal waters foreign processing permit procedures and collect related fees; 07 (40) administer state laws relating to the issuance of business licenses; 08 (41) comply with AS 15.07.055 to serve as a voter registration agency 09 to the extent required by state and federal law, including 42 U.S.C. 1973gg (National 10 Voter Registration Act of 1993); 11 (42) [REPEALED] 12 (43) carry out other functions and duties, consistent with law, 13 necessary or appropriate to accomplish the purpose of this chapter; 14 (44) administer the Alaska BIDCO assistance program under 15 AS 37.17.500 - 37.17.690 and adopt regulations to carry out the provisions of those 16 statutes; 17 (45) supply necessary clerical and administrative services for the 18 Alcoholic Beverage Control Board and the Marijuana Control Board. 19 * Sec. 43. AS 44.81.275(d) is amended to read: 20 (d) In this section, 21 (1) "commissioner" means the commissioner of revenue 22 [COMMERCE, COMMUNITY, AND ECONOMIC DEVELOPMENT]; 23 (2) "department" means the Department of Revenue [COMMERCE, 24 COMMUNITY, AND ECONOMIC DEVELOPMENT]. 25 * Sec. 44. AS 44.83.020 is amended to read: 26 Sec. 44.83.020. Creation of authority. There is created the Alaska Energy 27 Authority. The authority is a public corporation of the state in the Department of 28 Revenue [COMMERCE, COMMUNITY, AND ECONOMIC DEVELOPMENT] but 29 with separate and independent legal existence. 30 * Sec. 45. AS 44.88.020 is amended to read: 31 Sec. 44.88.020. Creation of authority. There is created the Alaska Industrial

01 Development and Export Authority. The authority is a public corporation of the state 02 and a body corporate and politic constituting a political subdivision within the 03 Department of Revenue [COMMERCE, COMMUNITY, AND ECONOMIC 04 DEVELOPMENT], but with separate and independent legal existence. 05 * Sec. 46. AS 46.04.040(e) is amended to read: 06 (e) Financial responsibility may be demonstrated by (1) self-insurance, (2) 07 insurance, (3) surety, (4) guarantee, (5) letter of credit approved by the department, or 08 (6) other proof of financial responsibility approved by the department, including proof 09 of financial responsibility provided by a group of insureds who have agreed to cover 10 pollution risks of members of the group under terms the department may prescribe. An 11 action brought under AS 46.03.758, 46.03.759, 46.03.760(a) or (d), 46.03.822, or 12 AS 46.04.030(g) may be brought in a state court directly against the insurer, the group, 13 or another person providing evidence of financial responsibility; however, the liability 14 under this section of a third-party insurer is limited to the type of risk assumed and the 15 amount of coverage specified in the proof of financial responsibility furnished to and 16 approved by the department. The applicant, and an insurer, surety, guarantor, person 17 furnishing an approved letter of credit, or other group or person providing proof of 18 financial responsibility approved by the department shall appoint an agent for service 19 of process in the state. For purposes of this subsection, an insurer, other than a group 20 of insureds whose agreement has been approved by the department, must either be 21 authorized by the Department of Revenue [COMMERCE, COMMUNITY, AND 22 ECONOMIC DEVELOPMENT] to sell insurance in the state or be an unauthorized 23 insurer listed by the Department of Revenue [COMMERCE, COMMUNITY, AND 24 ECONOMIC DEVELOPMENT] as not disapproved for use in the state. In this 25 subsection, "third-party insurer" means a third-party insurer, surety, guarantor, person 26 furnishing a letter of credit, or other group or person providing proof of financial 27 responsibility on behalf of an applicant under this section; "third-party insurer" does 28 not include the applicant. 29 * Sec. 47. AS 46.04.055(d) is amended to read: 30 (d) Notwithstanding the requirements of AS 46.04.040(e) and (l) and 31 46.04.047, for purposes of (a) of this section, an applicant may provide evidence of

01 financial responsibility by proof of entry of the nontank vessel in a protection and 02 indemnity association or proof of coverage with another insurer that 03 (1) is financially solvent and has a favorable history of claim handling; 04 (2) provides coverage against pollution risks in at least the amount of 05 the financial responsibility required under (a) of this section without any requirement 06 for a special endorsement; 07 (3) does not agree to be subject to direct action in court or to 08 appointment of an agent for service of process; and 09 (4) in the case of a protection and indemnity association or group of 10 insureds, is not authorized by the Department of Revenue [COMMERCE, 11 COMMUNITY, AND ECONOMIC DEVELOPMENT] to sell insurance in the state 12 so long as it is not listed by the Department of Revenue [COMMERCE, 13 COMMUNITY, AND ECONOMIC DEVELOPMENT] as being disapproved for use 14 in the state. 15 * Sec. 48. The uncodified law of the State of Alaska is amended by adding a new section to 16 read: 17 TRANSITIONAL PROVISIONS. (a) Litigation, hearings, investigations, and other 18 proceedings pending in connection with functions transferred by this Act continue in effect 19 and may be completed under the applicable statute or regulation as the statute or regulation 20 read on the day before the effective date of secs. 1 - 48 of this Act notwithstanding a transfer 21 provided for in this Act. 22 (b) Certificates, orders, and regulations in effect immediately before the effective date 23 of a law affected by this Act that were issued or adopted under authority of a law amended or 24 repealed by this Act remain in effect for the term issued and shall be enforced by the agency 25 to which the function is transferred under this Act until revoked, vacated, or amended by the 26 agency to which the function is transferred. 27 (c) Contracts, rights, liabilities, and obligations created by or under a law amended by 28 this Act, and in effect on the day before the effective date of the repeal or amendment, remain 29 in effect notwithstanding this Act's taking effect. 30 (d) Records, equipment, appropriations, and other property of an agency of the state 31 whose functions are transferred under this Act shall be transferred to implement the

01 provisions of this Act. 02 (e) Employees in the Department of Commerce, Community, and Economic 03 Development, division of insurance, and the employees in the Department of Commerce, 04 Community, and Economic Development, division of banking and securities, whose duties 05 have been transferred to the Department of Revenue under this Act, shall be transferred to the 06 Department of Revenue on the effective date of secs. 1 - 48 of this Act. 07 * Sec. 49. The uncodified law of the State of Alaska is amended by adding a new section to 08 read: 09 REGULATIONS. The Department of Commerce, Community, and Economic 10 Development and the Department of Revenue may adopt regulations necessary to implement 11 the changes made by this Act. The regulations take effect under AS 44.62 (Administrative 12 Procedure Act) but not before the effective date of the corresponding statute. 13 * Sec. 50. Section 49 of this Act takes effect immediately under AS 01.10.070(c).