Legislature(1995 - 1996)

04/26/1995 01:50 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
  HOUSE BILL 130                                                               
                                                                               
       "An Act  relating to agency review of public comment on                 
       the  adoption, amendment,  and  repeal of  regulations;                 
       relating to  the examination  of proposed  regulations,                 
       amendments   of   regulations,  and   orders  repealing                 
       regulations  by  the  Administrative Regulation  Review                 
       Committee and the  Department of  Law; relating to  the                 
       submission  to,  and  acceptance  by,  the   lieutenant                 
       governor   of   proposed  regulations,   amendments  of                 
       regulations,  and  orders  repealing  regulations;  and                 
       requiring  agencies  to  make   certain  determinations                 
       before adopting regulations, amendments of regulations,                 
       or orders repealing regulations."                                       
                                                                               
  Representative  Kelly explained HB  130.  He  noted that the                 
  creation  of  regulations heretofore  has  been  carried out                 
  within the bureaus  of state government beyond  the light of                 
  public scrutiny.    He noted  that though  public input  has                 
  always been a part of the  regulation process, the system is                 
  inherently flawed.  Regulations  have the force of law,  but                 
  he thought in our  form of government law must  emanate from                 
  the people through their elected officials.                                  
                                                                               
  Representative  Kelly  continued,  in  the  current  system,                 
  unelected  regulation  writers  have the  last  word  in the                 
  process, not the  people.   HB 130 would  attempt to  remedy                 
  that  by bringing elected  officials back into  the loop and                 
  making them politically  accountable to  the people for  the                 
  regulations that impact their lives.   The legislation would                 
  begin the process of regulatory reform.                                      
                                                                               
  Representative Kelly provided Committee members a  sectional                 
  analysis of the proposed legislation.                                        
                                                                               
  PAM  NEAL,  PRESIDENT,  ALASKA STATE  CHAMBER  OF  COMMERCE,                 
  testified  in  support of  HB  130.   She  pointed  out that                 
  regulatory  reform was  a priority of  the State  Chamber of                 
  Commerce this year.                                                          
                                                                               
  DEBORAH  BEHR,  REGULATIONS  ATTORNEY,  DEPARTMENT  OF  LAW,                 
                                                                               
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  provided  a  review of  HB 130.   She  pointed out  that the                 
  Administration was "neutral"  on the bill, although  the Lt.                 
  Governor's Office is supportive of  legislative reform.  She                 
  noted  that  the  amendment  she  provided  to  the  sponsor                 
  [Attachment #6]  would  address  the  Department's  concerns                 
  regarding the applicability for regulations.  Ms. Behr noted                 
  that the bill would not provide  any dramatic changes to the                 
  current system.  The Governor currently has the authority to                 
  return    regulations    to   the    individual   department                 
  commissioners.  Ms. Behr thought  that the legislation would                 
  well address the cost of compliance.                                         
                                                                               
  Representative Brown asked  how an agency  would be able  to                 
  adopt  regulations  without receiving  public comment.   Ms.                 
  Behr responded that  each department  would meet with  their                 
  individual commissioners and at that time,  the commissioner                 
  would be  briefed.   Following passage  of the  legislation,                 
  those meetings would be mandated.                                            
                                                                               
  (Tape Change, HFC 95-101, Side 1).                                           
                                                                               
  DEENA HENKINS, SECTION CHIEF, DRINKING WATER AND WASTEWATER,                 
  DEPARTMENT OF ENVIRONMENTAL CONSERVATION, explained that the                 
  Department  has  a  great deal  of  experience  in compiling                 
  comments and providing a written response to those comments.                 
  A  number of  standards  are covered  by the  federal public                 
  participation  in  regulations   which  requires  a  written                 
  response  to comments.  She  indicated that depending on the                 
  complexity and controversy of  the regulations, the  process                 
  would  range in cost  from several  thousand dollars  to ten                 
  thousand dollars.   The process also can  take a substantial                 
  amount of  time to compile  which would then  cause problems                 
  meeting deadlines.                                                           
                                                                               
  JOHN  LINDBACK, CHIEF OF STAFF, OFFICE  OF THE LT. GOVERNOR,                 
  reiterated  that   the  Administration  is  neutral  on  the                 
  legislation,  and  would  look  forward  to   including  the                 
  legislation with  other regulatory  reform bills  which have                 
  been   proposed   this   session.     He   added   that  the                 
  Administration is interested in  the regulatory reform, thus                 
  building a consensus to the process.                                         
                                                                               
  The Lt. Governor  has indicated  that the legislation  would                 
  reflect  how  public  perception  currently  exists  on  the                 
  process.  He pointed  out that most people assume  that this                 
  power  is  current law.    Mr. Lindback  then  addressed the                 
  fiscal notes.   He  enumerated that  amendments to  the bill                 
  most often  have a cost associated with them.  He asked that                 
  the fiscal  notes from  each agency  adequately reflect  the                 
  action of the Legislature.                                                   
                                                                               
  Representative Brown asked the  amount of time needed  for a                 
                                                                               
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  review.  Mr.  Lindback agreed that implementation could be a                 
  potential problem.  He thought that  it would work better if                 
  a  position   was  assigned   specifically  to   follow  the                 
  regulations.  That  position would be responsible  to follow                 
  all regulations  throughout the  legislature and  know their                 
  impact during that process.                                                  
                                                                               
  Representative Mulder asked if there was any portion  of the                 
  legislation that the Administration found objectional.   Mr.                 
  Lindback reiterated  that the Administration was  neutral on                 
  the legislation.   Representative Kohring  asked what  would                 
  happen if  a  regulation was  turned down  by the  Governor.                 
  Representative Kelly explained  that then the  comments from                 
  the Legislative Review  Committee would go to  the Governor.                 
  Under  the  proposed  legislation,  the  Legislative  Review                 
  Committee would be brought into the loop sooner.                             
                                                                               
  Representative  Kelly  responded  to Representative  Brown's                 
  inquiry about the intention to cost.  He added that industry                 
  has requested for regulation writers to make a determination                 
  of the cost for compliance.  He indicated that would be very                 
  expensive and that  the intention during the  public process                 
  period, was  to have the regulation writers address the cost                 
  of  those  regulations.   He noted  that  he would  prefer a                 
  complete  "cost of  analysis"  for the  regulations although                 
  stated that resources are limited.                                           
                                                                               
  Representative  Brown  asked how  the language  would affect                 
  each department's ability to raise their fees.  Mr. Lindback                 
  acknowledged  that the legislation  would clarify that there                 
  would be  a cost  to  each private  person.   Representative                 
  Brown  voiced  her concerns  regarding  the cost  versus the                 
  benefits of the legislation.                                                 
                                                                               
  BRUCE CAMPBELL, STAFF, REPRESENTATIVE PETE KELLY,  commented                 
  that  the  legislation's  intention was  focused  on  how to                 
  assist the agencies and provide them with guidance.  Cost is                 
  an area in which the agency  and staff have little knowledge                 
  in the  private sector.   They  are aware  of the  statutory                 
  guidance regarding  their benefits although the  cost issues                 
  are of the most concern to those that accrue them.                           
                                                                               
  ELMER,   LINDSTROM,   SPECIAL  ASSISTANT,   OFFICE   OF  THE                 
  COMMISSIONER, DEPARTMENT  OF  HEALTH  AND  SOCIAL  SERVICES,                 
  stressed that most  regulations result  from the passage  of                 
  new regulations  dealing with  new policy.   He pointed  out                 
  that was not the case for DHSS.  Less than one  third of the                 
  regulatory packages  developed by  that  Department are  the                 
  result of new  legislation.  A  majority of the  regulations                 
  come from an ongoing  review.  More importantly, over  time,                 
  then result from  regulations which are necessary  as budget                 
  actions  taken  by the  executive  or legislative  branch of                 
                                                                               
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  government.  He  thought that the  new provisions would  not                 
  help in  alleviating  the frustrations  resulting  from  the                 
  types  of   regulations  most  often  experienced   in  that                 
  Department.                                                                  
                                                                               
  Representative  Kohring  observed  that  Mr.  Lindstrom  had                 
  pointed  out  that the  majority  of DHSS's  regulations are                 
  drawn up outside the legislative process.  He added that the                 
  proposed legislation would alleviate that in the future.                     
                                                                               
  HB 130 was HELD in Committee for further consideration.                      

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