00 CS FOR HOUSE BILL NO. 33(L&C) 01 "An Act relating to regulations that may govern the conduct of small businesses; and 02 providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04  * Section 1. AS 44.62 is amended by adding a new section to read: 05 Sec. 44.62.218. Regulations affecting small businesses. (a) Before an 06 agency adopts a proposed regulation that may govern the conduct of small businesses, 07 or when a person petitions an agency under AS 44.62.220 to adopt a proposed 08 regulation that may govern the conduct of small businesses, the agency shall prepare 09 an economic effect statement under (b) of this section, prepare a regulatory flexibility 10 analysis under (c) of this section, and notify the department that the agency intends to 11 adopt the proposed regulation or has received a petition under AS 44.62.220 to adopt 12 the proposed regulation. 13 (b) An agency shall use the information received under AS 44.62.210 and 14 44.62.215, information provided by the department under (e) of this section, and other 01 information in the files of the agency to prepare the economic effect statement 02 required by (a) of this section. The economic effect statement must provide 03 (1) a general description and an estimate of the number of small 04 businesses that would be subject to the proposed regulation; 05 (2) the projected reporting, recordkeeping, and other administrative 06 costs that small businesses would be required to incur in order to comply with the 07 proposed regulation, including an identification of the type of professional skills 08 necessary to prepare the report or record or to take the administrative action; 09 (3) a statement of the probable economic effect that the proposed 10 regulation would have on the small businesses whose conduct would be governed by 11 the proposed regulation; and 12 (4) a description of any alternative methods of achieving the purpose 13 of the proposed regulation that would be less intrusive or less costly for the small 14 businesses whose conduct would be governed by the proposed regulation. 15 (c) In the regulatory flexibility analysis required by (a) of this section, an 16 agency shall consider using regulatory methods that 17 (1) minimize the effects of the proposed regulation on small businesses 18 while accomplishing the objectives of statutes authorizing the proposed regulation; 19 and 20 (2) are consistent with health, safety, environmental welfare, and 21 economic welfare. 22 (d) When preparing the regulatory flexibility analysis under (c) of this section, 23 the agency shall consider 24 (1) the establishment of less stringent compliance or reporting 25 requirements for small businesses; 26 (2) the establishment of less stringent schedules or deadlines for 27 compliance or reporting requirements for small businesses; 28 (3) the consolidation or simplification of compliance or reporting 29 requirements for small businesses; 30 (4) the establishment of performance standards to replace design or 31 operational standards for small businesses; and 01 (5) the exemption of small businesses from all or any part of the 02 requirements contained in the proposed regulation. 03 (e) The department shall advise and assist agencies to comply with this 04 section. 05 (f) This section does not apply to regulations of 06 (1) a board or commission whose members are subject to confirmation 07 by the legislature; 08 (2) the ombudsman; 09 (3) the office of victims' rights; 10 (4) the Alaska State Council on the Arts; 11 (5) the Local Boundary Commission; 12 (6) the division of elections; 13 (7) the administrative component of the Department of Administration 14 that administers motor vehicle and driver's license laws; 15 (8) the Department of Corrections; 16 (9) the Department of Fish and Game; or 17 (10) the Department of Military and Veterans' Affairs. 18 (g) This section does not create a private cause of action. If an agency fails to 19 comply with this section, the failure does not establish a ground on which to invalidate 20 a regulation that has been filed by the lieutenant governor under AS 44.62.080. This 21 subsection is not intended to prevent judicial review of a regulation under 22 AS 44.62.300 for a reason unrelated to this section. 23 (h) In this section, 24 (1) "department" means the Department of Commerce, Community, 25 and Economic Development; 26 (2) "governs the conduct" means regulates the manner in which a small 27 business conducts its business activities but does not include the imposition of a fee to 28 cover the cost of a state service if the fee is charged uniformly to all users of the 29 service; 30 (3) "proposed regulation" means a proposal for a new regulation or for 31 a change in or an addition to an existing regulation but does not include the repeal of 01 an existing regulation; or 02 (4) "regulation" has the meaning given in AS 44.62.640, but does not 03 include an emergency regulation under AS 44.62.250 - 44.62.260; 04 (5) "small business" means 05 (A) a business entity, including its affiliates, that 06 (i) is independently owned and operated; and 07 (ii) employs fewer than 100 employees; 08 (B) a village corporation; in this subparagraph, "village 09 corporation" has the meaning given in 43 U.S.C. 1602(j); or 10 (C) a nonprofit utility that employs fewer than 100 employees; 11 in this subparagraph, "utility" has the meaning given in AS 42.05.990. 12  * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 13 read: 14 TRANSITION. AS 44.62.218, enacted by sec. 1 of this Act, applies to a proposed 15 regulation proposed by an agency on or after January 1, 2006 or by an interested person under 16 AS 44.62.220 on or after January 1, 2006. In this section, "proposed regulation" has the 17 meaning given in AS 44.62.218, enacted by sec. 1 of this Act. 18  * Sec. 3. This Act takes effect January 1, 2006.