03/22/2013 01:00 PM House JUDICIARY

        HB 34 - FEDERAL LAWS, REGULATIONS & EXEC. ORDERS                                                                    
                                                                                                                                
1:11:13 PM                                                                                                                    
                                                                                                                                
CHAIR KELLER announced that the  first order of business would be                                                               
HOUSE BILL NO. 34,"An Act  making state compliance with a federal                                                               
law, regulation,  or presidential  executive order  contingent on                                                               
receipt  of certain  information  from  the federal  government."                                                               
[Before the committee was the  proposed committee substitute (CS)                                                               
for HB 34,  Version 28-LS0195\C, Nauman, 1/30/13,  adopted as the                                                               
working document on 2/25/13.]                                                                                                   
                                                                                                                                
1:11:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TAMMIE WILSON,  Alaska State Legislature, sponsor,                                                               
offering  her  understanding  of  what would  be  required  under                                                               
[Version C of]  HB 34, indicated disfavor  with the indeterminate                                                               
fiscal  note submitted  by  the [Office  of  Management &  Budget                                                               
(OMB)] for the bill.   She referred to the language  on page 2 of                                                               
the OMB's fiscal note - dated 03/13/2013 - that read in part:                                                                   
                                                                                                                                
     If a federal law has  a significant impact, then staff,                                                                    
     and very  likely economic consultants,  may need  to be                                                                    
     hired to determine  the impact on the state  and all of                                                                    
     the state's communities and industries.                                                                                    
                                                                                                                                
     There  are  just  under   250  communities  in  Alaska.                                                                    
     Assessing the  economic impact to these  communities is                                                                    
     not a  function that agencies are  typically staffed to                                                                    
     perform.     State  employees  implement   and  execute                                                                    
     federal and state  programs and cooperative agreements.                                                                    
     They are  not required  to assess the  economic impacts                                                                    
     to  communities and  industry.   Individual communities                                                                    
     are responsible  for providing this information  to the                                                                    
     legislature directly  if they choose  to do so.   For a                                                                    
     department  to  provide  this information  would  be  a                                                                    
     tremendous  undertaking  and would  require  additional                                                                    
     staff  and consultants,  depending on  the requirements                                                                    
     of  the  law,  regulation,  or  presidential  executive                                                                    
     order.                                                                                                                     
                                                                                                                                
REPRESENTATIVE T.  WILSON offered  her belief that  such analyses                                                               
should have already been being  performed by the state before any                                                               
federal funding  was accepted, particularly  given the  impact on                                                               
Alaska's communities.                                                                                                           
                                                                                                                                
1:17:09 PM                                                                                                                    
                                                                                                                                
STACIE  KRALY,  Chief  Assistant  Attorney  General  -  Statewide                                                               
Section  Supervisor,  Human   Services  Section,  Civil  Division                                                               
(Juneau),  Department of  Law (DOL),  said  that the  DOL is  not                                                               
taking  a position  on  HB  34, but  has  concerns regarding  the                                                               
bill's potential future  impact on the executive  branch of state                                                               
government.    Specifically, there  is  a  concern regarding  the                                                               
significant   costs   related   to  evaluating   [federal   laws,                                                               
regulations,  and presidential  executive orders]  to the  extent                                                               
required  under  [Version C]  -  including  the cost  of  [hiring                                                               
additional staff  and consultants] with the  necessary expertise;                                                               
a concern related to identifying  just which information would be                                                               
necessary in order for the  state to compile the reports required                                                               
under the bill, particularly given  the state's lack of access to                                                               
information obtained at  the local level or  by private industry;                                                               
and a  concern related  to the delay  inherent in  conducting the                                                               
type  of analysis  required under  the bill,  in that  such delay                                                               
could  result in  a loss  of federal  funding or  in missing  the                                                               
construction  season   -  in  turn  negatively   impacting  local                                                               
government and  private industry.   In  conclusion she  said that                                                               
the DOL  understands the intent  of the bill's sponsor  and would                                                               
be willing to work with her to achieve her goals.                                                                               
                                                                                                                                
MS.  KRALY, in  response  to questions,  relayed that  evaluating                                                               
federal regulations as  required under the bill  raises a concern                                                               
with  regard to  having to  wait until  any such  regulations are                                                               
actually promulgated;  that Version C  of HB 34 is  still unclear                                                               
with  regard  to how  the  state  shall  comply with  the  bill's                                                               
requirements  and what  shall trigger  compliance;  and that  the                                                               
bill doesn't yet  define the terms, "economic effect"  as used on                                                               
page 1,  line 10, or describe  the scope of the  required report.                                                               
Changing the bill  to address those issues could  be helpful, she                                                               
acknowledged, and again indicated a  willingness to work with the                                                               
sponsor.                                                                                                                        
                                                                                                                                
CHAIR KELLER ascertained that the  representative from the Office                                                               
of Management  & Budget (OMB) had  nothing further to add  to Ms.                                                               
Kraly's comments.                                                                                                               
                                                                                                                                
1:32:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX,  referring to  HB  34  as a  great  idea,                                                               
questioned whether  it goes  far enough, in  that it  doesn't yet                                                               
address situations wherein local  governments and communities and                                                               
private industry  must comply with  state laws,  regulations, and                                                               
gubernatorial executive orders.                                                                                                 
                                                                                                                                
REPRESENTATIVE   GRUENBERG  concurred;   noted  that   the  terms                                                               
"community" and "industry"  as used on page 1, line  11, are also                                                               
not   yet  defined   in  the   bill;  and   suggested  that   the                                                               
applicability section of  the bill be changed such  that the bill                                                               
would  apply to  laws,  regulations, and  orders implemented  180                                                               
days after the bill becomes effective.                                                                                          
                                                                                                                                
REPRESENTATIVE   T.  WILSON   acknowledged   those  points,   and                                                               
reiterated that  she'd thought the  state was  already conducting                                                               
the type of analyses that would  be required under [Version C of]                                                               
the bill.                                                                                                                       
                                                                                                                                
REPRESENTATIVE   LEDOUX   suggested   that  perhaps   the   term,                                                               
"industry" could  be changed to  the term, "person"  because that                                                               
term is currently defined in  statute as including entities other                                                               
than individual persons.                                                                                                        
                                                                                                                                
1:43:04 PM                                                                                                                    
                                                                                                                                
MIKE  COONS said  he  supports the  intent of  HB  34, though  he                                                               
expressed a preference for the original version of the bill.                                                                    
                                                                                                                                
1:47:09 PM                                                                                                                    
                                                                                                                                
CHARLES EDWARDS said he concurs with Mr. Coons's comments.                                                                      
                                                                                                                                
CHAIR  KELLER noted  that  members'  packets contain  information                                                               
about certain federal requirements  impacting the Alaska Railroad                                                               
Corporation (ARRC).                                                                                                             
                                                                                                                                
REPRESENTATIVE  T.  WILSON,  in conclusion,  predicted  that  the                                                               
administration won't  be happy with  any forthcoming  proposed CS                                                               
for  HB 34  because  it,  too, would  entail  more  work for  the                                                               
administration; and remarked:  "Sometimes  we might have to spend                                                               
some  money to  find out  that information,  but I  think overall                                                               
we'll make better choices, and  maybe choices we should have been                                                               
making in the first place."                                                                                                     
                                                                                                                                
[HB 34, Version C, was held over.]