Article 1. Organization.

Chapter 33. Department of Commerce, Community, and Economic Development.

Sec. 44.33.010. Commissioner of commerce, community, and economic development.
The principal executive officer of the Department of Commerce, Community, and Economic Development is the commissioner of commerce, community, and economic development. Except with respect to the commissioner's membership on the board of directors of the Alaska Railroad Corporation, whenever a statute provides that the commissioner is a member of a board, council, or other similar entity, the commissioner may designate an employee of the department to act in the commissioner's place.

Sec. 44.33.020. Duties of department; regulations.
 (a) The Department of Commerce, Community, and Economic Development shall
     (1) advise and assist local governments;

     (2) advise the governor and other commissioners on the delivery of government services to rural areas, including services relating to public safety, justice, economic development, natural resource management, education, and public health;

     (3) make recommendations to the governor and other commissioners about policy changes that would affect rural governments and rural affairs;

     (4) serve as staff for the Local Boundary Commission;

     (5) conduct studies and carry out experimental and pilot projects for the purpose of developing solutions to community and regional problems;

     (6) promote cooperative solutions to problems affecting more than one community or region, including joint service agreements, regional compacts, and other forms of cooperation;

     (7) serve as a clearinghouse for information useful in solution of community and regional problems, and channel to the appropriate authority requests for information and services;

     (8) advise and assist community and regional governments on matters of finance, including but not limited to bond marketing and procurement of federal funds;

     (9) prepare suggested guidelines relating to the content of notice of bond sale advertisements, prospectuses, and other bonding matters issued by local governments;

     (10) administer state funds appropriated for the benefit of unorganized regions within the state, allowing for maximum participation by local advisory councils and similar bodies;

     (11) as assigned through a delegation by the governor, administer and implement the state's role in the federal community development quota program established under 16 U.S.C. 1855(i) or a successor federal program; the department may adopt regulations under a delegation from the governor to implement duties under this paragraph;

     (12) carry out those administrative functions in the unorganized borough that the legislature may prescribe;

     (13) study existing and proposed laws and state activities that affect community and regional affairs and submit to the governor recommended changes in those laws and activities;

     (14) coordinate activities of the state that affect community and regional affairs;

     (15) assist in the development of new communities and serve as the agent of the state for purposes of participation in federal programs relating to new communities;

     (16) supervise planning, management, and other activities required for local eligibility for financial aid under those federal and state programs that provide assistance to community and regional governments;

     (17) advise and assist municipalities on procedures of assessment, valuation, and taxation, and notify municipalities of major errors in those procedures;

     (18) apply for, receive, and use funds from federal and other sources, public or private, for use in carrying out the powers and duties of the department;

     (19) request and utilize the resources of other agencies of state government in carrying out the purposes of this chapter to the extent the utilization is more efficient than maintaining departmental staff, reimbursing the other agencies when appropriate;

     (20) administer state and, as appropriate, federal programs for revenue sharing, community assistance, grants, and other forms of financial assistance to community and regional governments;

     (21) administer the state programs relating to commerce or community development, enforce the laws relating to these programs, and adopt regulations under these laws;

     (22) register corporations;

     (23) collect corporation franchise taxes;

     (24) enforce state laws regulating public utilities and other public service enterprises, banking and securities, insurance, and other businesses and enterprises touched with a public interest;

     (25) make veterans' loans;

     (26) furnish the budgeting, clerical, and administrative services for regulatory agencies and professional and occupational licensing boards not otherwise provided for;

     (27) conduct studies, enter into contracts and agreements, and make surveys relating to the economic development of the state and, when appropriate, assemble, analyze, and disseminate the findings obtained;

     (28) provide factual information and technical assistance for potential industrial and commercial investors;

     (29) receive gifts, grants, and other aid that facilitate the powers and duties of the department from agencies and instrumentalities of the United States or other public or private sources;

     (30) establish and activate programs to achieve balanced economic development in the state and advise the governor on economic development policy matters;

     (31) formulate a continuing program for basic economic development and for the necessary promotion, planning, and research that will advance the economic development of the state;

     (32) cooperate with private, governmental, and other public institutions and agencies in the execution of economic development programs;

     (33) review the programs and annual reports of other departments and agencies as they are related to economic development and prepare an annual report on the economic growth of the state;

     (34) administer the economic development programs of the state;

     (35) perform all other duties and powers necessary or proper in relation to economic development and planning for the state;

     (36) request tourism-related businesses in the state to provide data regarding occupancy levels, traffic flow and gross receipts and to participate in visitor surveys conducted by the department; data collected under this paragraph that discloses the particulars of an individual business is not a matter of public record and shall be kept confidential; however, this restriction does not prevent the department from using the data to formulate tourism economic impact information including expenditure patterns, tax receipts and fees, employment and income attributable to tourism, and other information considered relevant to the planning, evaluation, and policy direction of tourism in the state;

     (37) provide administrative and budgetary services to the Real Estate Commission under AS 08.88 as requested by the commission;

     (38) sell at cost, to the extent possible, publications and promotional materials developed by the department;

     (39) as delegated by the governor, administer under 16 U.S.C. 1856 the internal waters foreign processing permit procedures and collect related fees;

     (40) administer state laws relating to the issuance of business licenses;

     (41) comply with AS 15.07.055 to serve as a voter registration agency to the extent required by state and federal law, including 42 U.S.C. 1973gg (National Voter Registration Act of 1993);

     (42) carry out other functions and duties, consistent with law, necessary or appropriate to accomplish the purpose of this chapter;

     (43) oversee the administration of outstanding loans and financial assistance under the Alaska BIDCO assistance program under former AS 37.17.500 — 37.17.690;

     (44) supply necessary clerical and administrative services for the Alcoholic Beverage Control Board and the Marijuana Control Board.

 (b) The department may adopt regulations necessary to carry out its statutory functions.




Sec. 44.33.022. Accounting and disposition of fees. [Repealed, § 28 ch 90 SLA 1991.]
Sec. 44.33.025. Recording. [Repealed, E.O. No. 47, § 6 (1980).]
Sec. 44.33.026. Alaska regional economic assistance program. [Repealed, § 3 ch 94 SLA 1988. For current provisions, see AS 44.33.896.]
Secs. 44.33.030 — 44.33.060. Power development. [Repealed, § 10 ch 79 SLA 1983.]
Sec. 44.33.065. Regional seafood development associations.
 (a) The Department of Commerce, Community, and Economic Development shall assist in and encourage the formation of a qualified regional seafood development association for each seafood development region identified in (b) of this section for the purpose of promoting and marketing Alaska seafood products harvested in the region. The commissioner shall designate the first organization to apply and qualify under this subsection for recognition as the qualified association for a region to be the qualified regional seafood development association for that seafood development region if the commissioner determines that the organization
     (1) is established for the following purposes:
          (A) promotion of seafood and seafood by-products that are harvested in the region and processed for sale;

          (B) promotion of improvements to the commercial fishing industry and infrastructure in the seafood development region;

          (C) establishment of education, research, advertising, or sales promotion programs for seafood products harvested in the region;

          (D) preparation of market research and product development plans for the promotion of seafood and their by-products that are harvested in the region and processed for sale;

          (E) cooperation with the Alaska Seafood Marketing Institute and other public or private boards, organizations, or agencies engaged in work or activities similar to the work of the organization, including entering into contracts for joint programs of consumer education, sales promotion, quality control, advertising, and research in the production, processing, or distribution of seafood harvested in the region;

          (F) cooperation with commercial fishermen, fishermen's organizations, seafood processors, the Alaska Fisheries Development Foundation, the Fisheries Industrial Technology Center, state and federal agencies, and other relevant persons and entities to investigate market reception to new seafood product forms and to develop commodity standards and future markets for seafood products;

     (2) provides for representation of commercial fishing permit holders for each fishery in the region that is subject to a seafood development tax levied under AS 43.76.350 — 43.76.399 on the board of directors of the organization;

     (3) provides for membership in the organization by any commercial fisherman who holds a commercial fishing permit for a fishery that is conducted in the region and by other persons and groups in the region who wish to be members of the organization; and

     (4) is organized as a nonprofit corporation under the laws of the state for the purpose of marketing and promoting seafood products taken in the region and seafood products taken in fisheries subject to a seafood development tax levied under AS 43.76.350 — 43.76.399.

 (b) Seafood development regions are established for each of the following regions of the state and are made up of the designated commercial fishing management areas established by the Board of Fisheries in accordance with the boundaries of those areas as adopted by the Board of Fisheries:
     (1) Southeast Alaska seafood development region — Southeastern Alaska area and Yakutat area;

     (2) Prince William Sound seafood development region — Prince William Sound area;

     (3) Cook Inlet seafood development region — Cook Inlet area;

     (4) Kodiak seafood development region — Kodiak area;

     (5) Alaska Peninsula seafood development region — Alaska Peninsula area;

     (6) Aleutian Islands seafood development region — Aleutian Islands area;

     (7) Chignik seafood development region — Chignik area;

     (8) Atka-Amlia Islands seafood development region — Atka-Amlia Islands area;

     (9) Bristol Bay seafood development region — Bristol Bay area;

     (10) Kuskokwim seafood development region — Kuskokwim area;

     (11) Yukon-Northern seafood development region — Yukon-Northern area and Kotzebue area;

     (12) Norton Sound-Port Clarence seafood development region — Norton Sound-Port Clarence area.

 (c) An organization may be designated as the qualified regional seafood development association for more than one seafood development region.

 (d) A qualified regional seafood development association for a fishery may request state financial assistance from the department to aid the seafood development programs of the association.

 (e) A qualified regional seafood development association requesting state financial assistance shall submit an annual financial report to the department on a form provided by the department. The department may require that a qualified regional seafood development association use a uniform system of accounting. A qualified regional seafood development association requesting state assistance shall submit an annual budget to the department on or before a date specified by the department.

 (f) The department may adopt regulations necessary to implement this section.

 (g) In this section, “fishery” has the meaning given in AS 16.43.990.




Sec. 44.33.110. Civil Air Patrol. [Repealed, E.O. No. 33 (1968). For current provisions, see AS 18.60.146.]
Sec. 44.33.112. Fees for publications, research data, and other services.
The commissioner may establish by regulation and the department may charge reasonable fees for department publications, research data, and other centralized administrative services to cover the cost of reproduction, printing, mailing, distribution, and other centralized administrative services.

Sec. 44.33.113. Charges for community development quota program.
 (a) If the governor delegates duties as described in AS 44.33.020(a)(11) to the department, the department shall determine and assess an annual administrative cost charge for the administration of the state's role in the federal community development quota program. The department shall by regulation establish the method for implementing the charge in accordance with the provisions of this section. The department shall assess the charges on community development quota groups with approved community development plans for the fiscal year for which the charge is applicable. The community development quota group shall pay the charge.

 (b) The administrative cost charge under this section for a CDQ group shall be determined by the department no later than the June 30 immediately preceding the start of the applicable fiscal year. The department shall promptly notify the CDQ group of the amount of the charge. The CDQ group shall pay the charge no later than 45 days after the department provides notice to the CDQ group of the amount of the charge.

 (c) The aggregate total of administrative cost charges to all CDQ groups for a fiscal year shall approximately equal, but may not exceed, the appropriations authorized for that fiscal year for the state's role under AS 44.33.020(a)(11), less
     (1) appropriations from sources of program receipts under AS 37.05.146(b) and (c) not collected under this section; and

     (2) any reappropriations of charges collected under this section.

 (d) Fifty percent of the aggregate total of administrative cost charges assessed on all CDQ groups for a fiscal year shall be recovered through the standard portion of the charges and 50 percent of the aggregate total shall be recovered through the variable portion of the charges. The administrative cost charge assessed on a CDQ group for a fiscal year shall consist of a standard portion and a variable portion. The CDQ group's standard portion is calculated by dividing the aggregate total amount to be recovered through this portion by the number of CDQ groups to be assessed a charge. The CDQ group's variable portion is calculated by multiplying the aggregate total amount to be recovered through this portion by a percentage that represents the ratio of the value of the CDQ group's fisheries resource quota allocation to the total value of fisheries resources allocated under the CDQ program for the applicable year.

 (e) Notwithstanding any contrary provision of this section, the department may adjust the variable portion of the administrative cost charge for a fiscal year to one or more CDQ groups if the department finds that an inequitable result will occur absent the adjustment, but the aggregate total of the charges to be paid by all CDQ groups after the adjustment must equal the amount originally calculated for that fiscal year under (c) of this section.

 (f) The department may not assess or collect administrative charges under this section from new CDQ groups representing communities that are not eligible for the CDQ program on June 30, 2000, for a period of two years from the actual award of a fisheries quota to that newly formed CDQ group.

 (g) The department shall collect and enforce the administrative cost charge assessed under this section. The receipts from the charge assessed under this section shall be deposited in the community development quota program account in the state treasury. Under AS 37.05.146(c), receipts from charges collected under this section shall be accounted for separately, and appropriations from the account are not made from the unrestricted general fund. The legislature may appropriate money from the community development quota program account for expenditures by the department for necessary costs incurred by the department in implementing any assigned role under AS 44.33.020(a)(11) or for any other public purpose.

 (h) The Department of Administration shall identify the amount of the appropriations for the state's role under AS 44.33.020(a)(11) that lapses into the general fund each year. The legislature may appropriate an amount equal to the lapsed amount to the community development quota program for its operating costs for the next fiscal year.

 (i) The department may adopt regulations under AS 44.62 (Administrative Procedure Act) to interpret or implement its duties under this section.

 (j) In this section,
     (1) “CDQ group” or “community development quota group” means an applicant under 16 U.S.C. 1855(i), or a successor program, with an approved community development plan;

     (2) “CDQ program” or “community development quota program” means the federal community development quota program established under 16 U.S.C. 1855(i), or a successor federal program approved by the United States Secretary of Commerce;

     (3) “fiscal year” has the meaning given in AS 37.05.920;

     (4) “value” has the meaning given in AS 43.75.290.




Sec. 44.33.115. Exxon Valdez oil spill unincorporated rural community grant fund.

Sec. 44.33.118. Definitions.
In AS 44.33.010 — 44.33.118,
     (1) “commissioner” means the commissioner of commerce, community, and economic development;

     (2) “department” means the Department of Commerce, Community, and Economic Development.




Article 2. Tourism.
Sec. 44.33.119. Purposes.
The purposes of AS 44.33.119 — 44.33.136 are to
     (1) encourage the expansion and growth of the state's visitor industry for the benefit of the citizens of the state;

     (2) ensure that the economic benefits to be derived from tourism in the state are retained in the state, to the greatest extent possible;

     (3) ensure that a maximum number of residents of the state are employed in the tourism industry;

     (4) ensure that consideration is given in the development and implementation of the tourism program to local community goals and objectives, to impacts on existing private enterprises, and to impacts on recreational and subsistence opportunities for the residents of the state;

     (5) promote the development of tourism opportunities throughout the state, including along the highway system of the state, the marine highway, and in rural areas of the state.




Sec. 44.33.120. Duties of the department.
 (a) [Repealed, § 84 ch 58 SLA 1999.]
 (b) The Department of Commerce, Community, and Economic Development shall
     (1) cooperate with organizations in the private sector for the promotion and development of tourism into and within the state;

     (2) coordinate with municipal, state, and federal agencies for the development of tourism resources in the state;

     (3) promote and develop the state's tourist industry;

     (4) cooperate with the private sector and the Alaska Tourism Marketing Board in the planning and execution of a destination tourism marketing campaign that is in the public interest;

     (5) promote the development of visitor industry facilities, both in the public sector and the private sector, through the use of state resources as appropriate;

     (6) plan and advocate for tourism and tourism development in coordination with the private sector, municipalities, state, and federal agencies;

     (7) administer a visitor information center located in Tok; and

     (8) conduct research related to tourism.

 (c) [Repealed, § 28 ch 90 SLA 1991.]
 (d) [Repealed, § 5 ch 76 SLA 2014.]




Sec. 44.33.122. Establishment of Tourism Coordinating Committee. [Repealed, § 33 ch 23 SLA 1995.]
Sec. 44.33.124. Membership of the Tourism Coordinating Committee. [Repealed, § 33 ch 23 SLA 1995.]
Sec. 44.33.125. Tourism marketing contracts. [Repealed, § 5 ch 76 SLA 2014.]
Sec. 44.33.130. Division contract. [Repealed, § 11 ch 78 SLA 1988.]
Sec. 44.33.135. Grants for promotion or development of visitor travel.
 (a) A municipality, a nonprofit corporation formed under AS 10.20, or a bona fide nonprofit civic, fraternal, or service organization may receive, as a grant, matching money from the state for up to 50 percent of the costs of a program or project that the commissioner of commerce, community, and economic development determines is consistent with the purposes of AS 44.33.119 and is likely to promote or develop visitor travel, including
     (1) the promotion of conventions;

     (2) the construction, improvement, or operation of visitor destination facilities and tourist attractions; and

     (3) the development and preservation of attractions of historical, contemporary, recreational, or cultural interest.

 (b) The commissioner of commerce, community, and economic development shall adopt regulations to carry out the provisions of this section.

 (c) A grant awarded under this section may not be used for tourism marketing.




Sec. 44.33.136. Alaska Tourism Marketing Board.
 (a) The Alaska Tourism Marketing Board is created in the Department of Commerce, Community, and Economic Development.

 (b) The board consists of 21 members as follows:
     (1) 18 members appointed by the governor who are members of the leading statewide nonprofit tourism association and who represent different segments of the tourism industry and company sizes and the following regions of the state:
          (A) Southeast;

          (B) Southcentral;

          (C) Southwest;

          (D) Interior; and

          (E) Far North;

     (2) the commissioner of commerce, community, and economic development or the commissioner's designee;

     (3) one member of the senate appointed by the president of the senate, who shall serve ex officio as a nonvoting member of the board; and

     (4) one member of the house of representatives appointed by the speaker of the house of representatives, who shall serve ex officio as a nonvoting member of the board.

 (c) Before making the appointments under (b)(1) of this section, the governor shall identify the leading statewide nonprofit tourism marketing association.

 (d) The governor may appoint the members under (b)(1) of this section from a list of nominees for each seat submitted by the leading statewide nonprofit tourism marketing association. The governor may reject a list for any seat submitted under this subsection and request that another list be submitted.

 (e) The term of office of a member of the board appointed under (b)(1) of this section is three years.

 (f) The board shall annually elect a chair and vice-chair from among its members. Nine members of the board including at least one member representing each region listed under (b)(1) of this section constitute a quorum. The board shall meet at least twice a year. The chair shall set the time and place of the meeting, either on the chair's own motion or on written request by three members of the board. The board is encouraged to meet electronically.

 (g) The members of the board do not receive a salary for service on the board. The members of the board appointed under (b)(2) — (4) of this section are entitled to per diem and travel expenses authorized by law for other boards and commissions under AS 39.20.180. The members of the board appointed under (b)(1) of this section are not entitled to per diem or travel expenses.

 (h) The board shall
     (1) cooperate with the department to plan and execute a destination tourism marketing campaign that is in the public interest; and

     (2) make recommendations to the department regarding tourism marketing.

 (i) In this section,
     (1) “board” means the Alaska Tourism Marketing Board;

     (2) “department” means the Department of Commerce, Community, and Economic Development.




Secs. 44.33.140 — 44.33.180. Grants; matching money; limitations; administration. [Repealed, § 11 ch 78 SLA 1988.]
Secs. 44.33.190 — 44.33.230. Tourism Advisory Board. [Repealed, § 2 ch 97 SLA 1986.]
Article 3. Film Production Promotion Program.
Sec. 44.33.231. Film production promotion program.
 (a) The film production promotion program is established in the Department of Commerce, Community, and Economic Development.

 (b) The purpose of the film production promotion program is to
     (1) work with organizations in the private sector for the expansion and development of film production industries in the state;

     (2) promote Alaska as an appropriate location for film production;

     (3) provide production assistance through connecting film directors, makers, and producers with Alaska location scouts and contractors, including contractors providing assistance with permit applications; and

     (4) certify Alaska film production internship training programs and promote the employment of program interns by eligible productions.

 (c) [Repealed, § 7 ch 35 SLA 2015.]




Sec. 44.33.232. Alaska film production incentive program. [Repealed, § 30 ch 51 SLA 2012.]
Sec. 44.33.233. Eligibility. [Repealed, § 30 ch 51 SLA 2012.]
Sec. 44.33.234. Qualification for film production tax credit. [Repealed, § 30 ch 51 SLA 2012.]
Sec. 44.33.235. Award of film production tax credit. [Repealed, § 30 ch 51 SLA 2012.]
Sec. 44.33.236. Determination of qualified expenditures. [Repealed, § 30 ch 51 SLA 2012.]
Sec. 44.33.237. Recovery of film production tax credit. [Repealed, § 30 ch 51 SLA 2012.]
Sec. 44.33.238. Regulations. [Repealed, § 30 ch 51 SLA 2012.]
Sec. 44.33.239. Definitions. [Repealed, § 30 ch 51 SLA 2012.]
Article 4. Child Care Facility Revolving Loan Fund.
Sec. 44.33.240. Child care facility revolving loan fund.
 (a) There is in the Department of Commerce, Community, and Economic Development the child care facility revolving loan fund to carry out the purposes of AS 44.33.240 — 44.33.275. Except as provided in (b) and (c) of this section, the fund may not be used for any other purpose.

 (b) The department may use money in the fund for costs of administering AS 44.33.240 — 44.33.275.

 (c) On June 30 of each fiscal year the unexpended and unobligated cash balance of the fund that is attributable to loans owned by the fund lapses into the general fund.




Sec. 44.33.242. Special account established.
 (a) There is established as a special account within the child care facility revolving loan fund the foreclosure expense account. This account is established as a reserve from fund equity.

 (b) The commissioner of commerce, community, and economic development may expend money credited to the foreclosure expense account when necessary to protect the state's security interest in collateral on loans made under AS 44.33.245 or to defray expenses incurred during foreclosure proceedings after a default by an obligor.




Sec. 44.33.245. Powers and duties of the department in administering the fund.
 (a) The department may
     (1) make loans for the construction, renovation, and equipping of child care facilities, including private nonprofit child care facilities;

     (2) adopt regulations necessary to carry out the provisions of AS 44.33.240 — 44.33.275, including regulations to establish reasonable fees for services provided and charges for collecting the fee; and

     (3) collect the fees and charges established under this subsection.

 (b) The department shall
     (1) develop eligibility standards for loans to child care facilities;

     (2) adopt guidelines for the determination of loan terms.




Sec. 44.33.250. Conditions of loans. [Repealed, § 9 ch 112 SLA 1981.]
Sec. 44.33.255. Loan terms.
 (a) A loan to a child care facility under AS 44.33.240 — 44.33.275 may not exceed $50,000.

 (b) The rate of interest charged shall be seven percent a year on the unpaid balance of the loan.

 (c) The duration for repayment of a loan may not exceed 20 years.

 (d) All principal and interest payments, and any money chargeable to principal or interest that is collected through liquidation by foreclosure or other process on loans made under AS 44.33.240 — 44.33.275, shall be paid into the child care facility revolving loan fund.

 (e) If a child care facility ceases operation, any loan to the facility from the fund is due on the date the facility ceases operation.




Sec. 44.33.260. Eligibility for loans.
A child care facility is eligible for a loan under AS 44.33.240 — 44.33.275 if
     (1) the applicant submits to the department a plan for the use of the loan funds that is approved by the commissioner;

     (2) [Repealed, § 9 ch 112 SLA 1981.]
     (3) [Repealed, § 7 ch 153 SLA 1978.]
     (4) [Repealed, § 7 ch 153 SLA 1978.]
     (5) the applicant meets additional eligibility standards established by the department under AS 44.33.245(b)(1).




Sec. 44.33.265. Certificate of need. [Repealed, § 7 ch 153 SLA 1978.]
Sec. 44.33.270. Sale or transfer of mortgages and notes.
 (a) The commissioner of commerce, community, and economic development may sell or transfer at par value or at a premium to a bank or other private purchaser for cash or other consideration the mortgages and notes held by the department as security for loans made under AS 44.33.240 — 44.33.275.

 (b) [Repealed, § 14 ch 122 SLA 1980.]




Sec. 44.33.272. Disposal of property acquired by default or foreclosure.
The department shall dispose of property acquired through default or foreclosure of a loan made under AS 44.33.240 — 44.33.275. Disposal shall be made in a manner that serves the best interests of the state, and may include the amortization of payments over a period of years.

Sec. 44.33.275. Definitions.
In AS 44.33.240 — 44.33.275,
     (1) “child care facility” means an establishment the principal purpose of which is to provide care for children not related by blood, marriage, or legal adoption, including but not limited to day care centers, family day care homes, and schools for preschool age children;

     (2) “department” means the Department of Commerce, Community, and Economic Development.




Article 5. Areas Impacted by Economic Disaster.
Sec. 44.33.285. Action by governor.
The governor may, upon recommendation of the commissioner of commerce, community, and economic development, designate by proclamation an area as an area impacted by an economic disaster. When an area is so designated, the legislature may appropriate money for assistance grants and the governor may recommend in the governor's budget submission that capital projects planned for the area be accelerated and that new projects be funded for the area. The proclamation may provide that waivers of capital projects requirements, as authorized in AS 44.33.300, become effective only to the extent set out in the proclamation.

Sec. 44.33.290. Employment preference.
 (a) In the performance of contracts awarded by the state in an area impacted by an economic disaster, residents of the area shall be employed where they are available and qualified so that the economic effects of alleviating the disaster will be maximized. If resident labor is not available, the contractor shall inform the Department of Labor and Workforce Development of the number of additional workers needed, the positions to be filled, and the efforts made at recruitment in the area. If the Department of Labor and Workforce Development is satisfied that a good faith effort has been made by the contractor to hire residents of the area, it may issue a certificate allowing other hire for designated positions. A clause requiring these provisions shall be part of each state contract awarded.

 (b) Wages paid for employment under this section shall be in conformance with the minimum rates of pay schedule published by the Department of Labor and Workforce Development in accordance with AS 36.05.030.




Sec. 44.33.295. Contractors' preference.
If the department determines that there are contractors in an area designated as an area impacted by an economic disaster and who are qualified to perform a contract, preference to the extent feasible shall be given to those contractors under regulations adopted by the department.

Sec. 44.33.300. Waiver of certain provisions.
When the governor has by proclamation declared an area impacted by an economic disaster, the following provisions regarding public contracts may be waived to the extent specified in the proclamation:
     (1) the requirement of a contractor's bond as prescribed in AS 36.25.010 may be waived if the contract amount does not exceed $100,000;

     (2) the public bid requirements as contained in AS 19.10.170, AS 19.30.191(b), AS 35.15.010 — 35.15.020, and AS 36.30 (State Procurement Code) may be waived if the contract is to be performed by a contractor whose principal office is in the designated area and the contract amount does not exceed $50,000;

     (3) the general policy to require all construction to be under bid contract as contained in AS 19.10.170, AS 35.15.010, and AS 36.30 (State Procurement Code) may be waived if the contract is to be performed by the state, another governmental entity, or a nonprofit entity.




Sec. 44.33.305. Regulations.
The department, after consultation with the Department of Labor and Workforce Development, may adopt regulations to implement AS 44.33.285 — 44.33.310.

Sec. 44.33.310. Definitions.
In AS 44.33.285 — 44.33.310,
     (1) “base period” means any 10 years after 1950, not necessarily continuous, and if the economic disaster is caused by a fisheries failure the period shall consist of years during which a fishery produced at economically representative levels as determined by the Department of Fish and Game;

     (2) “department” means the Department of Commerce, Community, and Economic Development;

     (3) “economic disaster” means that the annual income to workers in the designated area dropped below the average annual income for the base period for workers in the designated area and the drop in income is of such magnitude that the average family income of all residents of the designated area as determined by the department is below the poverty guidelines issued by the federal Department of Health and Human Services, adjusted by the department to reflect subsistence economic patterns and appropriate cost-of-living differentials; the availability of alternate employment shall be considered in determining whether an economic disaster has occurred under this paragraph.




Secs. 44.33.320 — 44.33.380. Residential Care Facility Revolving Loan Fund. [Repealed, § 72 ch 113 SLA 1982.]
Sec. 44.33.381. Telemedicine business registry.
 (a) The department shall adopt regulations for establishing and maintaining a registry of businesses performing telemedicine services in the state.

 (b) The department shall maintain the registry of businesses performing telemedicine services in the state. The registry must include the name, address, and contact information of businesses performing telemedicine services in the state. The department may renew every two years the registration of a business that meets all renewal requirements established by regulation and pays a renewal fee every two years.

 (c) The department shall charge the following fees for businesses performing telemedicine services in the state:
     (1) initial registration fee, $100, adjusted for inflation in a manner determined by the department;

     (2) renewal fee, $100, adjusted for inflation in a manner determined by the department;

     (3) fee to report changes in the business's registration information, $50.

 (d) In this section,
     (1) “department” means the Department of Commerce, Community, and Economic Development;

     (2) “telemedicine services” means the delivery of health care services using the transfer of medical data through audio, visual, or data communications that are performed over two or more locations by a provider who is physically separated from the recipient of the health care services.




Article 7. Alaska Minerals Commission.
Secs. 44.33.401 — 44.33.430. Cultural Facilities Grants. [Repealed, § 2 ch 97 SLA 1986.]
Article 6. Telemedicine Business Registry.
Sec. 44.33.431. Alaska Minerals Commission established.
 (a) The Alaska Minerals Commission is established in the Department of Commerce, Community, and Economic Development.

 (b) The commission is composed of 11 members. The commission shall be composed of individuals who have at least five years' experience in the various aspects of the minerals industries in the state. The governor shall appoint five members of the commission, one of whom must reside in a rural community. The president of the Senate shall appoint three members of the commission. The speaker of the House of Representatives shall appoint three members of the commission. Each member serves at the pleasure of the appointing authority.

 (c) The commission shall make recommendations to the governor and to the legislature on ways to mitigate the constraints, including governmental constraints, on development of minerals, including coal, in the state.

 (d) The commission shall report its recommendations each year to the governor during the first 10 days of the regular session of the legislature. The commission shall notify the legislature that the report is available.

 (e) Members of the commission are appointed for staggered terms of three years. Except as provided in AS 39.05.080(4), a member of the commission serves until a successor is appointed. Except as provided in AS 39.05.080(4), an appointment to fill a vacancy on the commission is for the remainder of the unexpired term. A member who has served all or part of two successive terms on the commission may not be reappointed to the commission unless three years have elapsed since the person has last served on the commission.

 (f) The commission shall elect two of its members to serve as chair and vice-chair. When a vacancy occurs in the office of chair or vice-chair, the commission shall elect one of its members to serve the remaining term as chair or vice-chair. The term as chair or vice-chair is three years. The chair and vice-chair may be elected to not more than two successive terms as chair or vice-chair. After three years of not serving as chair or vice-chair, the member is eligible for election as chair or vice-chair again.




Secs. 44.33.436 — 44.33.438. Neighborhood revitalization and development fund; powers and duties; definitions. [Repealed, § 12 ch 42 SLA 1997.]
Secs. 44.33.450 — 44.33.500. Alaska Agricultural Action Council. [Repealed, § 4 ch 75 SLA 1979.]
Article 8. Native Art Competitions.
Sec. 44.33.501. Program of competitions.
 (a) The Department of Commerce, Community, and Economic Development shall direct a continuing program of competitions. The competitions shall be held each summer to select outstanding examples of Alaskan Native arts and crafts.

 (b) The Department of Commerce, Community and Economic Development, after consulting with a committee from the Alaska Native Brotherhood and Sisterhood appointed by their councils from among the memberships of those organizations, shall adopt regulations for the competitions, providing for, but not limited to the following:
     (1) eligibility requirements for entrants;

     (2) categories for entry, such as basketwork, wood carving, pottery, stone work, ivory work, painting, etc.;

     (3) criterion for selecting category winners and grand prize winners;

     (4) transportation and display of entries;

     (5) prizes and awards for winning entrants which are restricted to ribbons, cups, plaques, etc.;

     (6) preparation of entry forms that
          (A) give the name and mailing address of the entrant,

          (B) show that each entry is the work of the entrant,

          (C) give the minimum price that the entrant will accept for the entry,

          (D) provide the entrant with a choice of having the entry sold, retained for display by the state, or returned to the entrant, and

          (E) identify and describe the entry; and

     (7) restricting the entrant from entering competitions in more than one region.




Sec. 44.33.502. Regional competitions.
Four regional competitions shall be held each summer in the first, second, third, and fourth judicial districts established in AS 22.10.010. First place and honorable mention awards shall be made in each category and one grand prize award and one honorable mention award shall be made for each region.

Sec. 44.33.503. Place of competition.
The Department of Commerce, Community, and Economic Development shall solicit invitations from the larger communities in each of the regions for holding the regional competition. The community in each region which offers the best facilities and the greatest measure of cooperation for conducting the competition shall be selected as the location of the regional competition.

Sec. 44.33.504. Judges.
Judges at the regional competitions shall be selected by the Department of Commerce, Community, and Economic Development and composed of a panel of five, two of whom shall be selected from nominees of the Alaska Native Brotherhood and Sisterhood and three of whom shall be selected by the department on the basis of their knowledge and appreciation of Alaskan Native arts and crafts and of art in general.

Sec. 44.33.505. Sale of entries.
If authorized by the entrant, an entry not selected for display may be sold for not less than the price set by the entrant on the entry form. The entry shall be transferred to the purchaser by competition officials on receipt of a money order or cashier's check made out to the entrant.

Sec. 44.33.506. Other displays.
The Department of Commerce, Community, and Economic Development may display or authorize the display of entries at places other than the regional competitions.

Sec. 44.33.507. Grants and assistance.
The Department of Commerce, Community, and Economic Development may accept grants of money and other assistance from private persons or groups, from political subdivisions of the state, or from others to conduct and promote annual competitions and displays.

Sec. 44.33.512. Temporary custody.
In order that the competitions may be held without undue disruption and in order that winning items may be displayed at other places, all entries submitted for judging shall be held in temporary custody by the state until they are no longer needed for display, at which time they shall be disposed of in accordance with the wishes of the entrant as set out on the entry form.

Sec. 44.33.520. Alaska Native Language Preservation and Advisory Council.

Secs. 44.33.530 — 44.33.550. Alaska Foreign Offices. [Repealed, E.O. No. 65, § 3 (1987).]
Secs. 44.33.600 — 44.33.630. Power Development Revolving Loan Fund. [Repealed, E.O. No. 75, § 5 (1989). For current law, see AS 44.83.500 — 44.83.530.]
Article 9. Alaska Native Language Preservation and Advisory Council.
Sec. 44.33.650 — 44.33.690. Alaska Capstone Avionics Revolving Loan Fund.

Secs. 44.33.700 — 44.33.735. Alaska Tourism Marketing Council. [Repealed, § 10 ch 29 SLA 1999.]
Article 10. Rural Development.
Sec. 44.33.740. Powers and duties.
To promote development of rural areas of the state, the department is authorized to
     (1) investigate social and economic conditions of rural areas to determine the need to expand economic opportunities and improve living conditions;

     (2) formulate a coordinated program to broaden and diversify the economic base of rural areas;

     (3) coordinate administration of emergency relief, surplus food distribution, or other public assistance programs, except the regular relief and assistance programs of the federal government in rural areas;

     (4) formulate and conduct a program of construction of basic facilities to improve health, welfare, and economic security and provide employment and income in the rural areas;

     (5) promote training and educational programs designed to expand employment opportunities for residents of rural areas;

     (6) enter into agreements with other state agencies and departments to provide for the distribution in rural communities of surplus electrical power from state-owned power sources located in those communities and to expend funds for this purpose;

     (7) make grants to communities for bulk fuel storage facilities;

     (8) cooperate with the Department of Environmental Conservation and other agencies to provide technical assistance to communities in the installation, operation, and management of bulk fuel storage facilities.




Sec. 44.33.745. Limitations.
A program of the department under AS 44.33.740 in a rural area may not exceed $100,000 in cost a year.

Sec. 44.33.750. Bulk fuel storage facilities grant fund.
 (a) There is established in the department the bulk fuel storage facilities grant fund. Grants may be made by the department from this fund to a community to acquire and install community bulk storage facilities.

 (b) Grants made under this section for the acquisition and installation of a bulk fuel storage facility may not exceed $100,000 per community.

 (c) If the governing body of two or more communities determine that their fuel requirements may be served by a single bulk fuel storage facility, the communities may jointly apply for grants to acquire and install a single bulk fuel storage facility. When communities apply jointly under this subsection, the limitation in (b) of this section is multiplied by the number of communities that submit the joint application.

 (d) Before a grant is made under this section, the city council or, if the community is not incorporated, a reasonable representative body in the community shall agree in writing to maintain and operate the bulk storage facility to be constructed with the proceeds of the grant.




Sec. 44.33.755. Land conveyed in trust.
 (a) The commissioner
     (1) shall accept, administer, and dispose of land conveyed to the state in trust by village corporations under 43 U.S.C. 1613(c)(3) (Sec. 14(c)(3) of the Alaska Native Claims Settlement Act) for the purposes specified in that section;

     (2) may, with the concurrence of an appropriate village entity recognized by the commissioner under (b) of this section or, in the absence of an appropriate village entity, under procedures prescribed by regulations of the commissioner, accept, administer, and dispose of land conveyed in trust by a state or federal agency and by the dissolution of a municipality under AS 29.06.450 — 29.06.530.

 (b) Transfer of land by sale, lease, right-of-way, easement, or permit, including transfer of surface resources, may be made by the commissioner only after approval of an appropriate village entity such as the traditional council, a village meeting, or a village referendum. This approval shall be by resolution filed with the department.

 (c) Within one complete state fiscal year after the incorporation of a municipality in the village or of a municipality that includes all or part of the village, land acquired under this section shall be conveyed without cost to the municipality, and the municipality shall succeed to all the entrusted interest in the land.

 (d) Separate accounts shall be maintained in the name of each village for the land, including the revenue from the land, acquired from each village corporation under this section.

 (e) Upon the conveyance of land to a municipality under this section, the commissioner shall account to the municipality for all profits including interest generated from the land. The municipality may then request the governor to submit a request to the legislature for an appropriation for the amount due the municipality.

 (f) Title to or an interest in land acquired by the department under this section may not be acquired by adverse possession or prescription. Notwithstanding (a) — (e) of this section, on the dissolution of a municipality under AS 29.06.450 — 29.06.530, unimproved land that was owned by the municipality on the date of its dissolution and received by the municipality from the state under a municipal land grant entitlement program is transferred to the commissioner of natural resources.

 (g) For the purposes of this section, “municipality” includes only first and second class cities incorporated under the laws of the state.




Sec. 44.33.760. Loan information officers.
 (a) The department may provide itinerant loan information officers to serve persons who reside outside the major population centers of the state.

 (b) The loan information officers shall be trained, to the extent that the department considers necessary, in a program administered by the department and approved by the Alaska Housing Finance Corporation, the Alaska Industrial Development and Export Authority, and the principal departments of the executive branch that administer loan programs.

 (c) A majority of the loan information officers shall be persons who are conversant in Alaska Native languages that are spoken by a significant number of Alaska Natives. The department shall provide brochures and other printed materials, written in easily understandable English and in the Alaska Native languages that are spoken by a significant number of Alaska Natives, for distribution by the loan information officers. The brochures and printed materials must explain the purposes of the various state loan programs, the minimum qualifications under the programs, the method for obtaining assistance in the completion of applications for the programs, and other information the department determines will improve the access of persons in rural areas to the state's loan programs.

 (d) The department shall coordinate its efforts under this section with local financial institutions and community groups to determine the proper itinerary and travel schedule of the loan information officers and to provide adequate notice to persons in rural areas of the itinerary and travel schedule of the loan information officers.

 (e) The department shall assign the loan information officers to rural areas based on the current and potential future demands for loans in those areas and shall establish offices for the loan information officers in rural areas if the department determines it is necessary to provide familiarity with the area served by the loan information officers and to reduce travel costs.




Secs. 44.33.765 — 44.33.775. Rural development initiative fund; rural development loans; disposal of property acquired by default or foreclosure. [Repealed, § 15 ch 117 SLA 2000.]
Sec. 44.33.780. Definitions.
In AS 44.33.740 — 44.33.780,
     (1) “commissioner” means the commissioner of commerce, community, and economic development;

     (2) “department” means the Department of Commerce, Community, and Economic Development.




Article 11. Planning Assistance
Sec. 44.33.781. Planning assistance for development and maintenance of district coastal management plans. [Repealed, § 18 ch 31 SLA 2005.]
Sec. 44.33.782. Planning assistance to platting authorities.
To facilitate planning in municipalities that exercise planning and zoning authority, the department may provide planning assistance, including but not limited to surveys, land use studies, urban renewal plans, technical services, model acts that include regulations designed to encourage development and use of energy systems not dependent on oil or gas, and other planning work to a city, borough, or other platting authority. In an area under the jurisdiction, for planning purposes, of a city, borough, or other platting authority, the department may not perform the planning work except at the request or with the consent of the local authority.

Sec. 44.33.784. Assistance by cities and platting authorities.
A city or platting authority may make funds under its control available to the department for the purposes of obtaining planning work or planning assistance, or both, for its area. The department may contract for, accept, and expend the funds for urban planning for the local jurisdiction.

Sec. 44.33.786. Land use planning and state facility procurement plan.
The department shall make recommendations to the Department of Transportation and Public Facilities and to appropriate program agencies concerning the effect upon the comprehensive plan or other land use plans or proposals of municipalities and unincorporated communities with respect to the facility procurement plan required to be prepared in accordance with AS 35.10.170.

Sec. 44.33.788. Other planning powers.
The department may accept and expend grants from the federal government and other public or private sources, may contract with reference to them, and may enter into contracts and exercise all other powers necessary to carry out AS 44.33.782 — 44.33.788.

Sec. 44.33.790. Definition.
In AS 44.33.782 — 44.33.790, “department” means the Department of Commerce, Community, and Economic Development.

Sec. 44.33.800. International trade. [Repealed, E.O. No. 112 § 3 (2004). For current law, see AS 44.19.017.]
Article 12. Local Boundary Commission.
Sec. 44.33.810. Local Boundary Commission.
There is in the Department of Commerce, Community, and Economic Development a Local Boundary Commission. The Local Boundary Commission consists of five members appointed by the governor for overlapping five-year terms. One member shall be appointed from each of the four judicial districts described in AS 22.10.010 and one member shall be appointed from the state at large. The member appointed from the state at large is the chair of the commission.

Sec. 44.33.812. Powers and duties.
 (a) The Local Boundary Commission shall
     (1) make studies of local government boundary problems;

     (2) adopt regulations providing standards and procedures for municipal incorporation, annexation, detachment, merger, consolidation, reclassification, and dissolution; the regulations providing standards and procedures are subject to AS 29.04 — AS 29.10;

     (3) consider a local government boundary change requested of it by the legislature, the commissioner of commerce, community, and economic development, or a political subdivision of the state; “boundary change” may not be construed to include a borough incorporation; and

     (4) develop standards and procedures for the extension of services and ordinances of incorporated cities into contiguous areas for limited purposes upon majority approval of the voters of the contiguous area to be annexed and prepare transition schedules and prorated tax mill levies as well as standards for participation by voters of these contiguous areas in the affairs of the incorporated cities furnishing services.

 (b) The Local Boundary Commission may
     (1) conduct meetings and hearings to consider local government boundary changes and other matters related to local government boundary changes, including extensions of services by incorporated cities into contiguous areas and matters related to extension of services; and

     (2) present to the legislature during the first 10 days of a regular session proposed local government boundary changes, including gradual extension of services of incorporated cities into contiguous areas upon a majority approval of the voters of the contiguous area to be annexed and transition schedules providing for total assimilation of the contiguous area and its full participation in the affairs of the incorporated city within a period not to exceed five years.




Sec. 44.33.814. Meetings and hearings.
The chair of the commission or the commissioner of commerce, community, and economic development with the consent of the chair may call a meeting or hearing of the Local Boundary Commission. All meetings and hearings shall be public.

Sec. 44.33.816. Minutes and records.
The Local Boundary Commission shall keep minutes of all meetings and hearings. If the proceedings are transcribed, minutes shall be made from the transcription. The minutes are a public record. All votes taken by the commission shall be entered in the minutes.

Sec. 44.33.818. Notice of public hearings.
Public notice of a hearing of the Local Boundary Commission shall be given in the area in which the hearing is to be held at least 15 days before the date of the hearing. The notice of the hearing must include the time, date, place, and subject of the hearing. The commissioner of commerce, community, and economic development shall give notice of the hearing at least three times in the press, through other news media, or by posting in a public place, whichever is most feasible.

Sec. 44.33.820. Quorum.
Three members of the commission constitute a quorum for the conduct of business at a meeting. Two members constitute a quorum for the conduct of business at a hearing.

Sec. 44.33.822. Boundary change.
A majority of the membership of the Local Boundary Commission must vote in favor of a proposed boundary change before it may be presented to the legislature.

Sec. 44.33.824. Expenses.
Members of the Local Boundary Commission receive no pay but are entitled to the travel expenses and per diem authorized for members of boards and commissions under AS 39.20.180.

Sec. 44.33.826. Hearings on boundary changes.
A local government boundary change may not be proposed to the legislature unless a hearing on the change has been held in or in the near vicinity of the area affected by the change.

Sec. 44.33.828. When boundary change takes effect.
When a local government boundary change is proposed to the legislature during the first 10 days of any regular session, the change becomes effective 45 days after presentation or at the end of the session, whichever is earlier, unless disapproved by a resolution concurred in by a majority of the members of each house.

Article 13. Borough Feasibility Studies.
Sec. 44.33.840. Borough feasibility studies.
The commissioner may contract for studies of the feasibility of establishing boroughs in the unorganized borough. A study may be conducted under this section only if
     (1) appropriations are available for that purpose; and

     (2) the study is requested by a person residing in the area to be studied or by a city located in the area to be studied.




Sec. 44.33.842. Requests for studies.
A request for a study of the feasibility of establishing a borough in the unorganized borough shall be submitted to the commissioner in writing and must include
     (1) a description of the boundaries of the area of the proposed study; and

     (2) an indication of local interest in the proposed study consisting of either
          (A) a petition requesting the study containing the signatures and addresses of five percent of the voters residing in the area of the proposed study based on the number of voters who voted in the area in the last statewide election; or

          (B) resolutions requesting the study adopted by the governing bodies of at least five percent of the cities within the area of the proposed study.




Sec. 44.33.844. Boundaries.
The boundaries of an area studied shall conform to the boundaries indicated in the request for the study under AS 44.33.842 unless the commissioner, after a public hearing held in the area of the proposed study, determines that the boundaries should be altered. In determining the boundaries of an area to be studied, the commissioner shall consider
     (1) the standards applicable to the incorporation of boroughs under AS 29.05.031;

     (2) boundaries of regional corporations established under 43 U.S.C. 1606;

     (3) census divisions of the state used for the 1980 census; and

     (4) boundaries of the regional educational attendance areas established under AS 14.08.031.




Sec. 44.33.846. Contracts.
 (a) The commissioner shall contract for a study of the feasibility of establishing a borough in the unorganized borough by following the procedures under AS 36.30 (State Procurement Code). The commissioner shall include terms in the contract that provide for
     (1) public participation in the preparation of the study;

     (2) completion of the study not later than June 30 of the third year after the year the contract is executed.

 (b) A study under this section must include
     (1) a recommendation for or against incorporation of a borough containing all or part of the area studied;

     (2) an evaluation of the economic development potential of the area studied;

     (3) an evaluation of capital facility needs of the area studied;

     (4) an evaluation of demographic, social, and environmental factors affecting the area studied;

     (5) an evaluation of the relationships among regional educational attendance areas and other regional entities responsible for providing services in the area studied;

     (6) an evaluation of the relationships between the existing cities within the area studied and regional entities responsible for providing services in the area; and

     (7) specific recommendations for
          (A) organization of a home rule or general law borough government if one is recommended;

          (B) changes in organization of cities in the area studied; or

          (C) the improvement of the delivery of services to the public by the state in the area studied.




Sec. 44.33.849. Definition.
In AS 44.33.840 — 44.33.849, “commissioner” means the commissioner of commerce, community, and economic development.

Article 14. Alaska Regional Economic Assistance Program.
Sec. 44.33.895. Alaska regional economic assistance program. [Repealed, § 2 ch 43 SLA 2000. For current provisions, see AS 44.33.896.]
Sec. 44.33.896. Alaska regional economic assistance program.
 (a) Subject to appropriation, the department shall
     (1) encourage the formation of regional development organizations by providing assistance in forming organizations to interested individuals, including information on how to qualify and apply for regional development grants and federal funding under 42 U.S.C. 3121 — 3246 (Public Works and Economic Development Act of 1965), as amended;

     (2) assist an interested individual in establishing boundaries for a proposed organization to ensure that the region
          (A) is of sufficient geographic size and contains a large enough population to form an economically viable unit with shared interests, resources, traditions, and goals;

          (B) contains at least one municipality that serves as a regional center; and

          (C) contains the entire area of each municipality included in the region;

     (3) gather information about regional economic issues, international trade, and tourism from organizations;

     (4) serve as liaison between organizations and other state agencies and encourage other agencies to make resources available to help accomplish goals of the organizations;

     (5) assist each organization to
          (A) provide services designed to encourage economic development to local communities and businesses;

          (B) collect and distribute economic information relevant to the region;

          (C) participate in state marketing campaigns and join state trade missions that are relevant to the region; and

          (D) develop and implement strategies to attract new industry, expand international trade opportunities, and encourage tourism within the region.

 (b) Subject to appropriation and to (c) of this section, the department may make regional development grants to organizations for projects the department determines will be of value in encouraging economic development. During a fiscal year, the department may make not more than 15 grants and may only make grants to one organization from a particular region. An organization that is designated an economic development district under 42 U.S.C. 3171 qualifies for grants under this subsection. The department shall by regulation adopt procedures for applying for regional development grants, including application deadlines. The department may by regulation establish additional grant eligibility requirements.

 (c) To qualify for a grant, a regional development organization must match the grant by providing an amount of money from nonstate sources. The department shall establish by regulation a formula that determines the amount of the match required under this subsection based on the capability of each organization to generate money from nonstate sources. The amount of match required may not exceed the amount of grant money and may not be less than 20 percent of the grant. The total amount of grant money provided to an organization during a fiscal year may not exceed $100,000.

 (d) There is established in the department the regional development fund consisting of appropriations to the fund. Money from the fund may be used only for regional development grants.

 (e) Not later than February 1 of each year, the department shall compile a report on the activities of regional development organizations. The department shall deliver the report to the senate secretary and the chief clerk of the house of representatives and notify the legislature that the report is available. The report must include the information listed in (1) - (3) of this subsection. To compile the report, the department shall require each regional development organization to provide the following information to the department on or before a date set by the department:
     (1) an assistance and funding summary for the previous fiscal year that includes
          (A) the assistance provided to the organization by the department, the amount and purposes of grants made to the organization by the department, and a statement of any other funding received by the organization from the state;

          (B) the amount of federal funding and grants received by the organization; and

          (C) the amounts and sources of private sector sponsorships;

     (2) an activity summary that includes
          (A) a summary of the meetings of the board of the regional development organization held during the past year, including the number of meetings and the date, location, and a brief description of the agenda of each meeting;

          (B) a summary of economic development initiatives being undertaken and services being provided by the regional development organization at the time of the report;

          (C) a work plan containing goals, objectives, and strategies for addressing regional economic needs;

          (D) a summary of any comprehensive economic development strategy being implemented by the board at the time of the report; and

          (E) the status of projects funded by grants from the state or the federal government; and

     (3) an economic development summary that includes
          (A) potential projects identified by the board that may enhance economic development; and

          (B) challenges to regional economic development identified by the board.

 (f) In this section,
     (1) “department” means the Department of Commerce, Community, and Economic Development;

     (2) “regional development organization” or “organization” means a nonprofit organization or nonprofit corporation formed to encourage economic development within a particular region of the state that includes the entire area of each municipality within that region and that has a board of directors that represents the region's economic, political, and social interests.




Article 15. Alaska Forest Products Research and Marketing Program.
Sec. 44.33.900. Alaska forest products research and marketing program.
 (a) The Alaska Forest Products Research and Marketing Program is established in the Department of Commerce, Community, and Economic Development.

 (b) The program is established to provide a statewide information clearinghouse and coordinator to gather and disseminate information relating to research and development, including technical, logistical, financing, marketing, and other relevant information regarding the manufacture of specific value-added wood products and the establishment of new high value-added manufacturing facilities in the state, and to assist in coordinating existing research and development efforts by state and federal agencies and other public and private entities.

 (c) The program coordinator shall identify unfilled needs and problems impeding the development of a high value-added wood products industry in the state, gather information and conduct analyses, and propose solutions by exploring successful models in other states and nations.




Article 16. Broadband.

Sec. 44.33.910. Office of broadband; purpose, powers, and duties.
 (a) The office of broadband is established in the Department of Commerce, Community, and Economic Development.

 (b) The purpose of the office of broadband is to
     (1) expand broadband access and digital equity in the state through federal, tribal, and local partnerships;

     (2) focus on broadband infrastructure projects that meet certain speed, latency, reliability, and scalability requirements, while maintaining technological neutrality within those requirements;

     (3) identify scalable and sustainable technologies that meet the needs of state residents into the future; and

     (4) support broadband equity and affordability for all state residents.

 (c) The office of broadband shall
     (1) prioritize broadband service expansion in the following order of priority:
          (A) unserved areas;

          (B) underserved areas; and

          (C) anchor institutions;

     (2) make grants to eligible grantees and prioritize grants to grantees with in-state experience, qualifications, and expertise needed to deploy, operate, repair, and maintain broadband infrastructure;

     (3) develop a procedure for issuance of grants;

     (4) develop a procedure for adoption of broadband service maps that
          (A) incorporates the Federal Communications Commission maps developed in accordance with P.L. 116-130 (Broadband DATA Act) to define unserved and underserved areas;

          (B) allows for broadband parity adjustments; and

          (C) provides for a process to challenge adoption of broadband service maps, including a public notice and comment period;

     (5) administer and set criteria for the broadband parity adjustment program under AS 44.33.915;

     (6) streamline permitting to support broadband deployment;

     (7) encourage local workforce development with in-state partners through the University of Alaska, technical, vocational, or trade schools, and apprenticeship programs; and

     (8) review and consider the recommendations of the Statewide Broadband Advisory Board established under AS 44.33.920.

 (d) The office of broadband shall adopt regulations under AS 44.62 (Administrative Procedure Act) to carry out its duties.

 (e) In this section, “anchor institution” means a school, library, health care facility, health care provider, public safety entity, institution of higher education, public housing organization, community support organization, or other entity that facilitates greater use of broadband service by low-income individuals, unemployed individuals, or elderly individuals.




Sec. 44.33.915. Broadband parity adjustment fund.
 (a) The broadband parity adjustment fund is created as a separate fund in the treasury for the purpose of
     (1) offsetting the costs of broadband services for consumers under (b) of this section; and

     (2) making grants to eligible beneficiaries under (c) of this section to improve the performance of and access to broadband across the state.

 (b) The office of broadband shall set the criteria for offsetting the costs of broadband services for consumers in the state by regulation.

 (c) An eligible beneficiary may include a resident, business, nonprofit organization, local government, tribal organization as defined in 25 U.S.C. 5304(l), or Native entity as defined in 15 U.S.C. 9501(10) in the state, but may not include a school district, library, or health care facility.

 (d) The broadband parity adjustment fund shall be administered by the office of broadband. The fund consists of
     (1) money appropriated by the legislature;

     (2) gifts, bequests, contributions from other sources, and federal money; and

     (3) interest earned on the fund balance.

 (e) The legislature may appropriate money from the broadband parity adjustment fund to the office of broadband to carry out the purposes of the fund.

 (f) The broadband parity adjustment fund is not a dedicated fund.

 (g) In this section,
     (1) “health care facility” has the meaning given in AS 18.23.400(n).

     (2) “school district” has the meaning given in AS 14.30.350.




Sec. 44.33.920. Statewide Broadband Advisory Board.
 (a) The Statewide Broadband Advisory Board is established.

 (b) The purpose of the advisory board is to provide technology-neutral input, recommendations, and advice regarding
     (1) state broadband policy, goals, and objectives;

     (2) project proposal processes and criteria for project selection;

     (3) mapping and data collection and sharing efforts; and

     (4) progress made on the recommendations of the Governor's Task Force on Broadband established under Administrative Order No. 322.

 (c) The advisory board is composed of
     (1) the commissioner of education and early development or the commissioner's designee;

     (2) the commissioner of commerce, community, and economic development or the commissioner's designee;

     (3) two members from the legislature, serving as ex officio nonvoting members, one of whom shall be appointed by the president of the senate and one by the speaker of the house of representatives; and

     (4) 11 additional members, at least two of whom live in an unserved or underserved area, appointed by the governor to three-year terms
          (A) representing a local government;

          (B) representing an Alaska Native corporation;

          (C) representing a tribal government;

          (D) representing a school district;

          (E) representing the University of Alaska;

          (F) representing the health care community;

          (G) representing the business community;

          (H) representing the broadband industry;

          (I) a broadband consumer;

          (J) representing rural energy systems; and

          (K) a technology neutral consultant.

 (d) The advisory board shall establish a broadband technical working group to provide technical recommendations to the advisory board. The advisory board shall appoint individuals to the broadband technical working group who collectively have expertise in the different technologies that provide broadband service in the state and who manage and deliver projects in the state. The broadband technical working group is composed of eight members appointed by the advisory board to three-year terms as follows:
     (1) one member who is a mechanical engineer;

     (2) one member who is a civil engineer;

     (3) one member who is an aerospace engineer;

     (4) one member who has expertise in telecommunications;

     (5) one member who has expertise in fiber optics;

     (6) one member who has expertise in satellite technology;

     (7) one member who has expertise in microwave technology; and

     (8) the advisory board broadband industry representative.

 (e) Members of the advisory board shall elect a chair from among the members listed in or appointed under (c)(1), (2), or (4) of this section.

 (f) Members of the advisory board and the broadband technical working group are not entitled to compensation, per diem, or reimbursement of travel expenses.




Sec. 44.33.930. Definitions.
In AS 44.33.910 — 44.33.930,
     (1) “underserved area” means an area that does not have broadband speeds of at least 100 Megabits per second downstream and at least 20 Megabits per second upstream with a latency sufficient to support real-time interactive applications;

     (2) “unserved area” means an area that does not have broadband speeds of at least 25 Megabits per second downstream and at least 3 Megabits per second upstream with a latency sufficient to support real-time interactive applications.




Article 17. Alaska Microloan Revolving Loan Fund.
Sec. 44.33.950. Alaska microloan revolving loan fund.
 (a) The Alaska microloan revolving loan fund is created in the Department of Commerce, Community, and Economic Development to carry out the purposes of AS 44.33.950 — 44.33.990.

 (b) The Alaska microloan revolving loan fund consists of the following:
     (1) money appropriated to, transferred to, or received by gift, grant, devise, bequest, or donation to the fund;

     (2) principal and interest payments or other income earned on loans or investments of the fund;

     (3) money chargeable to principal or interest that is collected through liquidation by foreclosure or other process on loans made under AS 44.33.950 — 44.33.990.

 (c) Money in the fund may be used by the legislature to make appropriations for costs of administering AS 44.33.950 — 44.33.990.




Sec. 44.33.955. Powers and duties of the department.
The department may
     (1) make loans to eligible applicants under AS 44.33.950 — 44.33.990 to be used for working capital, equipment, construction, or other commercial purposes by a business located in the state;

     (2) receive, take, hold, and administer any appropriation, transfer, gift, grant, bequest, devise, or donation of money for the fund;

     (3) establish amortization plans for repayment of loans, including extensions of the terms of loans;

     (4) allow an assumption of a loan if
          (A) the applicant meets the requirements established under this section; and

          (B) approval of the assumption would be consistent with the purposes of AS 44.33.950 — 44.33.990;

     (5) establish the rate of interest for loans consistent with law;

     (6) charge and collect fees for services provided under AS 44.33.950 — 44.33.990;

     (7) adopt regulations under AS 44.62 necessary to carry out the provisions of AS 44.33.950 — 44.33.990, including regulations to establish reasonable fees for services provided; and

     (8) designate agents and delegate powers as necessary to the agents.




Sec. 44.33.960. Eligibility.
 (a) For an applicant to be eligible for a loan under AS 44.33.950 — 44.33.990, the applicant shall
     (1) be a resident of the state, as determined under (b) of this section;

     (2) provide a reasonable amount of money from other nonstate sources for use on any project or enterprise for which money from a loan will be used; and

     (3) if the requested loan amount is more than $35,000, provide to the department a document from a state financial institution stating that
          (A) the applicant has been denied a loan for the same purpose; or

          (B) a loan from the financial institution is contingent on the applicant also receiving a loan from the fund.

 (b) To meet the residency requirements of (a) of this section, the applicant
     (1) shall physically reside in this state and maintain a domicile in this state during the 12 consecutive months preceding the date of application for the program; and

     (2) may not have
          (A) declared or established residency in another state; or

          (B) received residency or a benefit based on residency from another state.




Sec. 44.33.965. Limitations on loans.
 (a) The department may use money from the Alaska microloan revolving loan fund to make loans of up to $35,000 to a person or loans of up to $70,000 to two or more persons.

 (b) A loan under AS 44.33.950 — 44.33.990
     (1) may not exceed a term of 12 years, except for extensions under AS 44.33.955;

     (2) may not bear interest at a rate greater than the prime rate, as defined in AS 44.88.599, plus two percentage points, but that may not be less than four percent a year or more than eight percent a year;

     (3) must be secured by collateral acceptable to the commissioner; and

     (4) may not be made to a person who has a past due child support obligation established by court order or by the child support services agency under AS 25.27.160 — 25.27.220 at the time of application.




Sec. 44.33.970. Special account established.
 (a) The foreclosure expense account is established as a special account in the Alaska microloan revolving loan fund.

 (b) The department may expend money credited to the foreclosure expense account when necessary to protect the state's security interest in collateral on loans granted under AS 44.33.960 or to defray expenses incurred during foreclosure proceedings after an obligor defaults.




Sec. 44.33.975. Default.
If the borrower defaults on a note, the department shall notify the borrower of the default and the consequences of default by mailing a notice to the borrower's most recent address provided to the department by the borrower or obtained by the department.

Sec. 44.33.980. Disposal of property acquired after default.
The department shall dispose of property acquired through default of a loan made under AS 44.33.950 — 44.33.990. Disposal must be made in a manner that serves the best interest of the state and may include the amortization of payments over a period of years.

Sec. 44.33.990. Definitions.
In AS 44.33.950 — 44.33.990,
     (1) “commissioner” means the commissioner of commerce, community, and economic development;

     (2) “department” means the Department of Commerce, Community, and Economic Development.