02/23/1995 08:05 AM House STA

 HSTA - 2/23/95                                                                
 HB 130 - REGULATION ADOPTION PROCEDURES & REVIEW                            
                                                                               
 CHAIR JAMES announced that the next bill on the agenda was HB 130.            
 She said that Bruce Campbell, legislative aide to bill sponsor                
 Representative Pete Kelly, was there to make the presentation.                
                                                                               
 Number 610                                                                    
                                                                               
 BRUCE CAMPBELL, Legislative Aide to Representative Pete Kelly,                
 stated that Representative Kelly had already given the committee              
 the sponsor overview of HB 130 at an earlier meeting, and that he             
 would like to continue that discussion.  He said he would present             
 a draft committee substitute of the bill and urge passage of the              
 bill.  Mr. Campbell handed out a map of the current regulation                
 process and the various proposals to reform that process for the              
 subcommittee on regulation reform to review.  He said this would              
 allow them to see where each of the various regulation reform bills           
 were performing a given task.  This chart included an overview of             
 HB 130, HB 105, HB 163, as well as suggestions from the public.  He           
 handed out copies of the proposed committee substitute for HB 130.            
                                                                               
 MR. CAMPBELL stated that the regulation process was considered a              
 quasi-legislative process.  The initial catalyst for regulations is           
 the legislature, who draft statutes that then require regulations             
 to implement.  The agencies then draft regulations on which they              
 are required to hold public hearings and take input.  This is the             
 first time that the public actually gets to see the proposed                  
 regulation.  He said that other than this, there is very little               
 other guidance for the agencies from the Administrative Procedures            
 Act.  The regulation is then signed into law by the Lieutenant                
 Governor.  Currently, this role of the Lt. Governor is purely                 
 ministerial and mandatory.  He said that HB 130 attempts to make              
 this a less mandatory action of the Lieutenant. Governor by giving            
 them the ability to return a draft regulation to an agency for                
 rewrite.  He thought the Lt. Governor was a unique position in that           
 he is not beholden to the agencies, nor can he be fired by the                
 Governor.  Thus, the goal would be to give authority to the                   
 Lieutenant Governor to return bad regulations to the agencies for             
 rewrite.  He added that HB 130 would involve the legislature's                
 Regulation Review Committee in the process, prior to a regulation             
 becoming law, so that they may offer suggestions to make it better.           
 He said the proposed committee substitute clarifies some of the               
 language on page 3, to make the intent of the bill clearer.  He               
 said that in part E line 12 and 13, it clarifies that the                     
 Lieutenant Governor may return a regulation to the agencies.  He              
 said they added wording to clarify they meant that the Lieutenant             
 Governor may do this at any time in the drafting process to save              
 wasted efforts in writing and review of the regulation.  He also              
 said they added a best interest finding, which helped to clarify              
 the type of reasons for which the Lieutenant Governor may return a            
 regulation to the agency.  He wanted to comment that the term "best           
 interest" was a legal definition with precise meaning.  It was                
 intended to show that the Lieutenant Governor had broad oversight             
 abilities and a statewide responsibility to the people of Alaska.             
 On page 4, they have added a section to the Administrative                    
 Procedures Act, section 215, which require an agency to consider              
 substantive and scientific testimony and to create a record of the            
 public comment.  They must show as a matter of public record,                 
 whether they made use of a particular piece of public comment.  On            
 page 4, line 16, they deleted a couple of steps from the original             
 draft and required the agencies, following public comment, to                 
 calculate the cost of compliance and to show there is an                      
 economically feasible way to comply with this regulation.  This               
 also must be a part of the public record.  He said this amounted to           
 the changes in the proposed committee substitute for HB 130 and               
 that he would be willing to answer any questions.                             
                                                                               
 TAPE 95-21, SIDE A                                                            
 Number 137                                                                    
                                                                               
 CHAIR JAMES asked if there were any questions or comments from the            
 committee.  She said it was a fine presentation.  She asked if                
 anyone in the audience had any questions or comments.  Hearing                
 none, she said this bill would be referred to the House State                 
 Affairs subcommittee on regulation reform with other similar bills            
 for an overall review of the issue.  Chair James said that to give            
 the committee an update, she was still trying to get an accounting            
 of the actual costs of regulations and how the legislature could              
 try and save expenses with a regulation reform bill.  She thought             
 the subcommittee would meet after she had gotten these figures in             
 another week or two.