SCS CSHB 33(FIN): "An Act relating to required notification of the Department of Commerce, Community, and Economic Development, economic effect statements, and regulatory flexibility analyses regarding the adoption of regulations that may govern the conduct of small businesses; relating to a private cause of action, regulation invalidation, and judicial review related to required notification, economic effect statements, and regulatory flexibility analyses for the adoption of regulations that may govern the conduct of small businesses; and providing for an effective date."
00 SENATE CS FOR CS FOR HOUSE BILL NO. 33(FIN) 01 "An Act relating to required notification of the Department of Commerce, Community, 02 and Economic Development, economic effect statements, and regulatory flexibility 03 analyses regarding the adoption of regulations that may govern the conduct of small 04 businesses; relating to a private cause of action, regulation invalidation, and judicial 05 review related to required notification, economic effect statements, and regulatory 06 flexibility analyses for the adoption of regulations that may govern the conduct of small 07 businesses; and providing for an effective date." 08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 09 * Section 1. AS 44.62 is amended by adding a new section to read: 10 Sec. 44.62.218. Regulations affecting small businesses. (a) Before a 11 designated state agency adopts a proposed regulation that may govern the conduct of 12 small businesses, or when a person petitions a designated state agency under 13 AS 44.62.220 to adopt a proposed regulation that may govern the conduct of small
01 businesses, the designated state agency shall 02 (1) notify the department that the designated state agency intends to 03 adopt the proposed regulation or has received a petition under AS 44.62.220 to adopt 04 the proposed regulation; 05 (2) prepare an economic effect statement under (b) and (c) of this 06 section; and 07 (3) prepare a regulatory flexibility analysis under (d) and (e) of this 08 section. 09 (b) A designated state agency shall use the information received under 10 AS 44.62.210 and 44.62.215, information provided by the department under (f) of this 11 section, and other information in the files of the designated state agency to prepare the 12 economic effect statement required by (a) of this section. 13 (c) The economic effect statement required by (a) of this section must provide, 14 if available from the information gathered under (b) of this section, 15 (1) a general description of small businesses that would be subject to 16 the proposed regulation; 17 (2) the projected reporting, recordkeeping, and other administrative 18 costs that small businesses would be required to incur in order to comply with the 19 proposed regulation, including an identification of the type of professional skills 20 necessary to prepare the report or record or to take the administrative action; 21 (3) a statement of the probable economic effect that the proposed 22 regulation would have on the small businesses whose conduct would be governed by 23 the proposed regulation; and 24 (4) a description of any alternative methods of achieving the purpose 25 of the proposed regulation that would be less intrusive or less costly for the small 26 businesses whose conduct would be governed by the proposed regulation. 27 (d) In the regulatory flexibility analysis required by (a) of this section, a 28 designated state agency shall consider using regulatory methods that 29 (1) minimize the effects of the proposed regulation on small businesses 30 without compromising the objectives of statutes authorizing the proposed regulation; 31 and
01 (2) are consistent with health, safety, environmental welfare, and 02 economic welfare. 03 (e) When preparing the regulatory flexibility analysis under (d) of this section, 04 the designated state agency shall consider 05 (1) the establishment of less stringent compliance or reporting 06 requirements for small businesses; 07 (2) the establishment of less stringent schedules or deadlines for 08 compliance or reporting requirements for small businesses; 09 (3) the consolidation or simplification of compliance or reporting 10 requirements for small businesses; 11 (4) the establishment of performance standards to replace design or 12 operational standards for small businesses; and 13 (5) the exemption of small businesses from all or any part of the 14 requirements contained in the proposed regulation. 15 (f) The department shall advise and assist a designated state agency to comply 16 with this section. 17 (g) This section does not apply to regulations 18 (1) of a board or commission whose members are subject to 19 confirmation by the legislature; 20 (2) of the Alaska Energy Authority; 21 (3) of the Department of Environmental Conservation that are adopted 22 under the authority of AS 46.03.050 - 46.03.900, AS 46.04, AS 46.08, AS 46.09, 23 AS 46.11, AS 46.14, AS 46.35, or AS 46.45; 24 (4) of the Local Boundary Commission; 25 (5) mandated by federal law as a condition for participating in or 26 implementing a federally subsidized or assisted program, or for obtaining or 27 maintaining state primacy in a federal program; 28 (6) that address standards, requirements, or conditions for 29 reimbursement by the designated state agency for services to be rendered on behalf of 30 the designated state agency, that address amounts or rates of that reimbursement, or 31 that adjust those amounts or rates to contain costs within the amount of appropriations
01 from the legislature for a state fiscal year; or 02 (7) that establish standards, requirements, or conditions for the 03 eligibility of an individual for assistance under AS 18 or AS 47, or that establish 04 standards for determining the amount of assistance that an eligible person is entitled to 05 receive. 06 (h) This section does not create a private cause of action. If a designated state 07 agency fails to comply with this section, the failure does not establish a ground on 08 which to invalidate a regulation that has been filed by the lieutenant governor under 09 AS 44.62.080. This subsection is not intended to prevent judicial review of a 10 regulation under AS 44.62.300 for a reason unrelated to this section. 11 (i) In this section, 12 (1) "department" means the Department of Commerce, Community, 13 and Economic Development; 14 (2) "designated state agency" means the 15 (A) Department of Commerce, Community, and Economic 16 Development; 17 (B) Department of Environmental Conservation; 18 (C) Department of Health and Social Services; or 19 (D) Department of Labor and Workforce Development; 20 (3) "governs the conduct" means regulates the manner in which a small 21 business conducts its business activities but does not include the imposition of a fee to 22 cover the cost of a state service if the fee is charged uniformly to all users of the 23 service; 24 (4) "proposed regulation" means a proposal for a new regulation or for 25 a change in or an addition to an existing regulation but does not include the repeal of 26 an existing regulation; 27 (5) "regulation" has the meaning given in AS 44.62.640, but does not 28 include an emergency regulation under AS 44.62.250 - 44.62.260; 29 (6) "small business" means 30 (A) a business entity, including its affiliates, that 31 (i) is independently owned and operated; and
01 (ii) employs fewer than 100 employees; 02 (B) a village corporation that employs fewer than 100 03 employees; in this subparagraph, "village corporation" has the meaning given 04 in 43 U.S.C. 1602(j); or 05 (C) a nonprofit utility that employs fewer than 100 employees; 06 in this subparagraph, "utility" has the meaning given in AS 42.05.990. 07 * Sec. 2. AS 44.62.218 is repealed January 1, 2009. 08 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 09 read: 10 REPORT TO LEGISLATURE. The Department of Commerce, Community, and 11 Economic Development shall provide to the legislature on or before March 15, 2008, a report 12 on the effectiveness of AS 44.62.218, enacted by sec. 1 of this Act, in making regulations less 13 intrusive and less costly for small businesses. 14 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 15 read: 16 TRANSITION. AS 44.62.218, enacted by sec. 1 of this Act, applies to a proposed 17 regulation proposed by a designated state agency on or after January 1, 2006, or by an 18 interested person under AS 44.62.220 on or after January 1, 2006. In this section, "designated 19 state agency" and "proposed regulation" have the meanings given in AS 44.62.218, enacted 20 by sec. 1 of this Act. 21 * Sec. 5. This Act takes effect January 1, 2006.