00 CS FOR HOUSE BILL NO. 83(WTR) 01 "An Act relating to state implementation of federal statutes." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. FINDINGS AND INTENT. (a) The legislature finds that 04 (1) the people of the state, acting through their elected state officers, retain the 05 authority to establish state policy regarding the implementation of many federal statutes; 06 (2) implementation of federal policies in the state by federal agencies in ways 07 contrary to fundamental notions of federalism and self-determination on the state level must 08 be identified and countered; 09 (3) there is an urgent need to modify certain mandates imposed on the state 10 by the federal government because the implementation of those mandates wastes the financial 11 resources of the state, municipalities, and state residents and may undermine policies set by 12 the state; 13 (4) federal regulators frequently do not understand the needs and priorities of 14 this state; 01 (5) the tenth amendment to the United States Constitution directs that powers 02 not delegated to the United States are reserved to the states or to the people, yet the federal 03 government has intruded more and more into areas that must be left to the states; 04 (6) state government has a responsibility to monitor federal mandates to ensure 05 that they do not unduly conflict with state policy or go beyond the bounds imposed by the 06 tenth amendment to the United States Constitution. 07 (b) It is the intent of the legislature to assure that state government scrutinizes the 08 extent and scope of authority asserted by the federal government in imposing mandated 09 programs on the state to determine whether these mandates are inconsistent with state policy 10 or exceed the lawful authority of the federal government. 11 * Sec. 2. AS 37 is amended by adding a new chapter to read: 12 CHAPTER 40. IMPLEMENTATION OF FEDERAL MANDATES. 13  Sec. 37.40.010. STATE PROGRAMS IMPLEMENTING FEDERAL 14 MANDATES. (a) The office of management and budget shall annually review each 15 program administered by each department or agency of the executive branch that 16 implements federal statutes that impose mandated duties on the state. The office of 17 management and budget shall also review federal statutes, regulations, guidelines, and 18 policies that pertain to the program and identify those provisions that are inconsistent 19 with state policy or are not cost-effective. The office of management and budget shall 20 prepare a report describing the materials reviewed, setting out conclusions, and making 21 recommendations for changes in federal law to make the program consistent with state 22 policy or more cost-effective. A copy of the review prepared under this subsection 23 shall be delivered to the governor, the house and senate judiciary committees, and the 24 Legislative Budget and Audit Committee by February 1. 25  (b) The commissioner of a department or head of another agency of the 26 executive branch authorized to develop a state program to respond to mandates 27 contained in federal statute shall, with the assistance of the Department of Law, review 28 the applicable federal statutes, regulations, guidelines, and policies to determine 29 whether the federal government has exceeded its constitutional authority to impose 30 mandates on the state. If it is determined that the federal government may have 31 exceeded its authority, the commissioner or agency head shall submit a written report 01 to the governor and the house and senate judiciary committees setting out the basis for 02 this determination. 03  (c) A department or other agency of the executive branch authorized to 04 develop a state program to respond to mandates contained in federal statute shall 05  (1) give due consideration to the financial restraints of the state and 06 municipalities in the development of the program; and 07  (2) devise a program that is as efficient as possible in terms of long- 08 range public benefit and cost. 09  Sec. 37.40.020. LEGISLATIVE REVIEW OF FEDERAL MANDATES. (a) 10 Upon receipt of a report under AS 37.40.010(a) or (b), each committee shall review 11 the report and may seek additional information regarding the federal mandate involved. 12 The committee shall inquire further into the legality of the federal mandate, and may 13 enter into contracts for legal research on this issue. The committee may also enter into 14 contracts for research into legal theories that may support the right of the state to 15 oppose the federal mandate and may conduct or contract for research into more cost- 16 effective methods of implementing the mandate. 17  (b) Based upon its review under (a) of this section, the committee shall submit 18 a report of its recommendations to the governor and the Alaska congressional 19 delegation regarding 20  (1) the need to seek a change in federal statute, regulation, or policy 21 to ensure that the federal mandate is consistent with state policy and suited to the 22 needs of the state; 23  (2) ways in which the state program might be altered to more 24 efficiently implement the federal mandate; 25  (3) the advisability of pursuing a legal challenge to the validity of the 26 mandate.