Legislature(2005 - 2006)CAPITOL 120

04/06/2005 01:00 PM House JUDICIARY


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Recessed to a call of the Chair --
+= HB 12 TVS AND MONITORS IN MOTOR VEHICLES TELECONFERENCED
Heard & Held
<Bill rescheduled from 4/4/05>
+ HB 33 EFFECT OF REGULATIONS ON SMALL BUSINESSES TELECONFERENCED
Heard & Held
<Bill rescheduled from 4/4/05>
*+ HB 205 REVIEW AND SUSPENSION OF REGULATIONS TELECONFERENCED
Heard & Held
<Bill rescheduled from 4/4/05>
+= HB 94 ELECTIONS TELECONFERENCED
Heard & Held
<Bill rescheduled from 4/4/05>
+ SB 105 OVERTIME WAGES FOR FLIGHT CREW TELECONFERENCED
Heard & Held
Bills Previously Heard/Scheduled
+ HB 183 CAMPAIGN FINANCE: SHARED EXPENSES TELECONFERENCED
<Bill Hearing Postponed>
+ SB 36 ABSENTEE BALLOTS TELECONFERENCED
<Bill Hearing Postponed>
+= HB 150 LICENSING RADIOLOGIC TECHNICIANS TELECONFERENCED
<Bill Hearing Postponed>
+ HB 152 STATE INFO SYSTEM PLAN: LEGISLATURE TELECONFERENCED
<Bill Hearing Postponed>
HB 205 - REVIEW AND SUSPENSION OF REGULATIONS                                                                                 
                                                                                                                                
2:51:04 PM                                                                                                                    
                                                                                                                                
CHAIR McGUIRE announced  that the next order of  business would be                                                              
HOUSE  BILL  NO. 205,  "An  Act  relating  to review  of  proposed                                                              
regulatory  actions and  regulations,  fiscal  effect of  proposed                                                              
regulatory actions, and suspension of regulations."                                                                             
                                                                                                                                
REPRESENTATIVE  DAHLSTROM moved  to adopt  the proposed  committee                                                              
substitute  (CS) for HB  205, Version  24-LS0696\F, Cook,  4/4/05,                                                              
as  the work  draft.   There  being no  objection,  Version F  was                                                              
before the committee.                                                                                                           
                                                                                                                                
JIM  POUND,  Staff  to Representative  Jay  Ramras,  Alaska  State                                                              
Legislature,  sponsor, said  on  behalf of  Representative  Ramras                                                              
that HB  205 will bring  accountability to  all the laws  that are                                                              
being passed in the state of Alaska.  He elaborated:                                                                            
                                                                                                                                
     Each year,  the legislature  labors to pass  legislation                                                                   
     that is  good for the  state and its  people.   But when                                                                   
     most of us,  and the people, aren't looking,  a group of                                                                   
     administration workers  turn around to  administer those                                                                   
     statutes  by  interpreting  the language  to  what  best                                                                   
     fits   their  needs.     This   interpretation   process                                                                   
     sometimes varies  from the statutory language  and, in a                                                                   
     worst-case  scenario,  conflicts with  that  legislative                                                                   
     intent.    Once  this process  begins,  the  public  and                                                                   
     those  affected by  the proposed  regulations have  very                                                                   
     limited  ability   to  stop  them;  no   elected  public                                                                   
     official has  any real say over the  regulation process.                                                                   
     These  regulations   have  the  effect  of   law  unless                                                                   
     someone  is ...  able to  convince a  court to  overrule                                                                   
     them.                                                                                                                      
                                                                                                                                
     [House  Bill  205]  puts regulation  writers  on  notice                                                                   
     that the  [Joint Committee on Administrative  Regulation                                                                   
     Review]  will be watching  and may,  at a very  minimum,                                                                   
     slow the process  down.  By a vote of the  legislature a                                                                   
     [regulation]   ...   could   be   annulled.   ...   [The                                                                   
     legislature]  has  the  constitutional  right  to  write                                                                   
     laws,  not some  nameless,  unelected and  unaccountable                                                                   
     state employee  who may have a personal agenda.   [House                                                                   
     Bill 205]  also requires that  the public know  what the                                                                   
     costs  are   of  a  regulation,   not  only   for  state                                                                   
     government  but   for  the  public  as  well,   and,  in                                                                   
     response  to Representative  Gruenberg, I would  suggest                                                                   
     municipalities.                                                                                                            
                                                                                                                                
     At  ... first  I thought that  this bill  should have  a                                                                   
     huge fiscal  note, but in reality, since I've  looked at                                                                   
     the amount of  additional work that this  language would                                                                   
     require over  what is [currently]  being done,  I cannot                                                                   
     believe  that  they  can  come up  with  a  much  larger                                                                   
     fiscal  note than the  zero [fiscal  note] they've  been                                                                   
     showing   us  over   the  last  many   years  [for   the                                                                   
     promulgation]  of  regulations.     I  would  urge  your                                                                   
     support  of House Bill  205, and I'd  be glad to  answer                                                                   
     any questions.                                                                                                             
                                                                                                                                
2:53:57 PM                                                                                                                    
                                                                                                                                
MR.  POUND,  in response  to  a  question,  said that  [under  the                                                              
bill],  a  majority of  the  members  of  the Joint  Committee  on                                                              
Administrative  Regulation Review  can suspend the  implementation                                                              
of  a  regulation  until  adjournment  of  a  regular  legislative                                                              
session  unless  the  legislature  meanwhile passes  a  bill  that                                                              
annuls  or invalidates  the  regulation  - if  the  latter is  not                                                              
done,  then the  regulation  is  allowed to  go  into effect  upon                                                              
adjournment of the regular session.                                                                                             
                                                                                                                                
REPRESENTATIVE GRUENBERG  asked for a copy of the  March 19, 2002,                                                              
memorandum  referenced  in  a Joint  Committee  on  Administrative                                                              
Regulation Review  memorandum dated  May 1, 2002.   He  also asked                                                              
whether   the  bill  would   allow  the   legislature  to   affect                                                              
regulations without a statutory change.                                                                                         
                                                                                                                                
MR. POUND  said that prior to  the State v. A.L.I.V.E.  Voluntary,                                                            
606 P.2d 769  (Alaska 1980), the legislature had  the authority to                                                              
annul a regulation  via a concurrent resolution adopted  by a vote                                                              
of  both houses.    However,  the A.L.I.V.E.  decision  determined                                                            
that  doing  so  was  unconstitutional  under  the  separation  of                                                              
powers doctrine;  further, the  court said that  in order  for the                                                              
legislature  to  annul  a  regulation,  it  had  to  be  done  via                                                              
statute,  which  is what  is  being proposed  via  HB  205.   With                                                              
regard to the  aforementioned referenced memorandum,  he said that                                                              
he'd been unable  to locate it, and so members'  packets only have                                                              
the  Joint   Committee  on   Administrative  Regulation   Review's                                                              
response  dated May  1, 2002, which  he said  merely addresses  an                                                              
example  wherein a  department,  in writing  regulations,  ignored                                                              
both  the public  and  the  legislature's  intent with  regard  to                                                              
correspondence schools.                                                                                                         
                                                                                                                                
REPRESENTATIVE   GARA   said   he    questions   whether   it   is                                                              
constitutional  for  a  few  members  - in  this  case,  simply  a                                                              
majority of the  members of the Joint Committee  on Administrative                                                              
Regulation Review -  to [annul] a regulation.  He  asked whether a                                                              
legal [opinion] on that issue is available.                                                                                     
                                                                                                                                
MR. POUND  indicated that he did  not have such an  [opinion], and                                                              
reiterated that  the Joint Committee on Administrative  Regulation                                                              
Review by itself  would not be [annulling] a  regulation; instead,                                                              
it would just be  delaying a process that can already,  of its own                                                              
accord,  take up  to as  long  as a  year to  complete.   He  also                                                              
mentioned  that under  the  bill, should  the  Joint Committee  on                                                              
Administrative  Regulation  Review do  nothing  with  regard to  a                                                              
regulation, it would become law as a matter of course.                                                                          
                                                                                                                                
CHAIR McGUIRE  noted that a legal  opinion on this issue  could be                                                              
requested  and would  be helpful.   She  offered her  recollection                                                              
that some states  have ruled opposite of the  decision rendered in                                                              
the A.L.I.V.E.  case; thus, in  those states, a  simple resolution                                                            
can be  introduced to repeal  a regulation without  presentment to                                                              
the  governor.   She  offered her  understanding  that some  other                                                              
states have a  "blanket sunset" on regulations,  ranging from five                                                              
to  ten  years, that  forces  the  legislature  to look  at  those                                                              
regulations  and decide  whether they  should be  renewed.   Also,                                                              
some states  have a  committee similar to  the Joint  Committee on                                                              
Administrative  Regulation   Review,  and  the  powers   of  those                                                              
committees  vary;  some  have  subpoena   powers,  some  have  the                                                              
ability to  question people when  reviewing regulations,  and very                                                              
few   are  as   "neutered"   as   Alaska's  Joint   Committee   on                                                              
Administrative  Regulation  Review.   Compared  to  other  states,                                                              
Alaska has the  most power invested, via its  constitution, in its                                                              
executive  branch and  the  least ability  by  the legislature  to                                                              
impact  regulations,  particularly  in  light  of  the  A.L.I.V.E.                                                            
decision.                                                                                                                       
                                                                                                                                
REPRESENTATIVE  GARA  suggested that  the  question  is whether  a                                                              
committee  can temporarily  invalidate regulations  given that  it                                                              
can't  permanently invalidate  them.   He concurred  that a  legal                                                              
opinion on this issue would be helpful.                                                                                         
                                                                                                                                
3:03:40 PM                                                                                                                    
                                                                                                                                
CHRISTOPHER   KENNEDY,   Senior    Assistant   Attorney   General,                                                              
Environmental Section,  Civil Division (Anchorage),  Department of                                                              
Law  (DOL), opined  that  the  Joint Committee  on  Administrative                                                              
Regulation  Review serves  the important  function  of looking  at                                                              
regulations and  determining whether they  "go over the  line"; if                                                              
regulations are  found to  go over the  line, the Joint  Committee                                                              
on Administrative  Regulation Review  can bring  this fact  to the                                                              
legislature as  a whole.  Noting  that HB 205 proposes  in part to                                                              
alter  AS  24.20.445  -  which   pertains  to  the  suspension  of                                                              
regulations  - he  relayed  that  Legislative Legal  and  Research                                                              
Services  has said,  in part, in  a memorandum  dated January  17,                                                              
2001 [original punctuation provided]:                                                                                           
                                                                                                                                
     AS  24.20.445  permits  the   Administrative  Regulation                                                                   
     Review  Committee to  suspend the  effectiveness of  the                                                                   
     adoption  of a regulation  when the  legislature is  not                                                                   
     in session.   In discussing the constitutionality  of AS                                                                   
     44.62.320(a),  the  court in  A.L.I.V.E.  mentioned  the                                                                 
     power of the  committee to suspend, under  AS 24.20.445,                                                                   
     the operation  of a regulation.  While  not specifically                                                                   
     ruling  AS  24.20.445  unconstitutional,   it  suggested                                                                   
     that   because   of   the  primary   holding   that   he                                                                   
     legislature  may affect  a  regulation only  by law,  it                                                                   
     may not  delegate to a committee  the power to  affect a                                                                   
     regulation by  any other method.   Nor, indeed,  may the                                                                   
     legislature   delegate  its   law-making   power  to   a                                                                   
     committee.  ... Thus the effect  of the A.L.I.V.E.  case                                                                 
     is  to  strike  down  the  Committee's  power  under  AS                                                                   
     24.20.445.                                                                                                                 
                                                                                                                                
MR.  KENNEDY  said  the DOL  agrees  with  Legislative  Legal  and                                                              
Research  Services  that  the whole  underlying  authority  of  AS                                                              
24.20.445 is now  inoperative.  Therefore, he opined,  Sections 1-                                                              
5 of  HB 205  merely  "rearrange the  deck chairs  on the  Titanic                                                              
after the Titanic  is already resting on the ocean  floor," and so                                                              
the administration  doesn't  see any benefit  to those  provisions                                                              
of the bill.                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG said  he cannot  see "this" surviving  a                                                              
constitutional challenge.                                                                                                       
                                                                                                                                
MR.  POUND  opined  that the  average  person  doesn't  understand                                                              
regulations  until they affect  him/her,  that [during the  public                                                              
hearing process]  the language  in proposed  regulations  makes no                                                              
sense to  the average  person.   He relayed that  when he  was the                                                              
aide  for  the   Joint  Committee  on  Administrative   Regulation                                                              
Review,  most  attorneys  and  members of  the  public  that  he'd                                                              
spoken  with indicated  that they  hadn't  read their  newspapers'                                                              
public notices  regarding  proposed regulations.   He opined  that                                                              
departments  often  simply  ignore  the  public  comments  offered                                                              
during  the public  hearing process.   Then  once regulations  are                                                              
established,  departments  can  modify them  without  any  further                                                              
input from  the public; also,  according to an attorney  general's                                                              
opinion,  the Lieutenant  Governor's role  in the promulgation  of                                                              
regulations is then merely administrative and mandatory.                                                                        
                                                                                                                                
REPRESENTATIVE GRUENBERG  said he  can sympathize with  Mr. Pound,                                                              
but  that  won't  change  the constitution.    In  response  to  a                                                              
comment, he mentioned  that one could attempt to get  the court to                                                              
overturn the A.L.I.V.E. decision.                                                                                             
                                                                                                                                
3:09:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   GRUENBERG    suggested   that   there    may   be                                                              
constitutional  ways  of  dealing   with  the  perceived  problem,                                                              
which,  he surmised,  is that  some  agencies are  out of  control                                                              
with regard  to the  way they  are interpreting  statute and  then                                                              
promulgating   regulations   based   on   those   interpretations.                                                              
Assuming that  that is correct  in some  cases, he added,  why not                                                              
try to  find a constitutional fix.   For example,  the legislature                                                              
could pass  a law that  says regulations  are not effective  until                                                              
they  are  submitted  to the  Joint  Committee  on  Administrative                                                              
Regulation Review and  a certain amount of time  has elapsed; such                                                              
would give  the legislature  time to act.   He offered  his belief                                                              
that there  are ways of  solving the problem,  but that HB  205 is                                                              
not one of them.                                                                                                                
                                                                                                                                
CHAIR McGUIRE  offered her  belief that  the legislature  needs to                                                              
continue attempting  to find  a solution to  the problem,  that of                                                              
unelected  individuals  in  government   promulgating  regulations                                                              
based  on  their interpretation  -  sometimes  rightly,  sometimes                                                              
wrongly -  of statutory  language.   She mentioned the  Department                                                              
of  Health  and  Social  Services   (DHSS)  as  an  example  of  a                                                              
department that  has tremendous power  to promulgate a  wide range                                                              
of  regulations.   Noting that  not even  the lieutenant  governor                                                              
has  the power  to  do something  about  regulations once  they've                                                              
gone  through the  process, she  opined that  the current  process                                                              
does not work.                                                                                                                  
                                                                                                                                
3:14:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG suggested  that they  hold the  bill for                                                              
use as  a vehicle and have  the Joint Committee  on Administrative                                                              
Regulation Review  and the House State Affairs  Standing Committee                                                              
work on  the issue during the  interim, and reiterated  his belief                                                              
that the bill as currently written won't solve the problem.                                                                     
                                                                                                                                
CHAIR McGUIRE  asked Mr. Pound to  pass that suggestion  on to the                                                              
sponsor.    She also  suggested  that  the sponsor  research  what                                                              
other  states do,  and  referred to  information  compiled in  the                                                              
past by Legislative Legal and Research Services on this issue.                                                                  
                                                                                                                                
REPRESENTATIVE  GRUENBERG  opined that  HB  205 should  have  been                                                              
referred to the House State Affairs Standing Committee.                                                                         
                                                                                                                                
REPRESENTATIVE  ANDERSON, speaking  as  the current  chair of  the                                                              
Joint  Committee on  Administrative  Regulation Review,  suggested                                                              
that  it  would  be  a  good  idea   to  work  with  the  National                                                              
Conference of State Legislatures (NCSL) on this issue.                                                                          
                                                                                                                                
3:17:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KOTT  mentioned that most legislation  that results                                                              
in regulations  starts out  as an individual's  bill, and  that he                                                              
has suggested  to members that  they follow their  legislation all                                                              
the  way through  the  regulation-making  process  to ensure  that                                                              
unintended issues  are not swept  into the resulting  regulations.                                                              
He  mentioned   an  example  of   one  of  his  bills   for  which                                                              
regulations were created that did not conform to his intent.                                                                    
                                                                                                                                
CHAIR  McGUIRE  mentioned  the   "aquatic  farm"  Act  as  another                                                              
example.                                                                                                                        
                                                                                                                                
REPRESENTATIVE  COGHILL noted  that sometimes  the legislature  is                                                              
at  fault  simply  because  it   has  added  to  a  bill  language                                                              
authorizing a department  to promulgate regulations.   So although                                                              
the legislature  might have  delegated that  authority in  a given                                                              
situation, it might  be in order to review the  delegation of that                                                              
authority.    He  opined  that  the  legislature  should  be  very                                                              
careful in how it delegates its authority.                                                                                      
                                                                                                                                
3:20:31 PM                                                                                                                    
                                                                                                                                
CHAIR  McGUIRE   noted  that   the  dissenting   opinion   in  the                                                              
A.L.I.V.E.  case  questioned why  the  legislature  should not  be                                                            
able  to  affect  a  regulation   given  that  it  authorized  its                                                              
creation to begin with.                                                                                                         
                                                                                                                                
REPRESENTATIVE  GARA, too,  noted  that sometimes  bills will  say                                                              
something  general  but  will  then also  give  a  department  the                                                              
authority to  create regulations.   He characterized  the creation                                                              
of such language  as doing a disservice because there  is the risk                                                              
that  a  department   will  create  regulations   with  unintended                                                              
consequences.     Bills,  he  opined,  should   specifically  tell                                                              
departments what  the legislature  wants done, rather  than giving                                                              
them leeway.                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG, referring  to  Chair McGuire's  comment                                                              
regarding  the  dissenting  opinion in  the  A.L.I.V.E.  decision,                                                            
clarified that the  legislature does have the authority  to affect                                                              
regulations, but  it must do  so in the  same manner in  which the                                                              
authority to  promulgate those  regulations was  given -  in other                                                              
words, through statute.                                                                                                         
                                                                                                                                
CHAIR McGUIRE concurred.                                                                                                        
                                                                                                                                
[HB 205, Version F, was held over.]                                                                                             
                                                                                                                                

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