Legislature(1997 - 1998)

04/22/1998 09:08 AM Senate HES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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          HB 353-ADOPTION BY REFERENCE IN REGULATIONS                          
                                                                               
BRUCE CAMPBELL, staff to Representative Pete Kelly, sponsor of HB
353, made the following remarks.  HB 353 will allow a state agency,            
when it adopts a regulation that incorporates a document by                    
reference, to incorporate future amended versions of that document             
with the condition that the document is explicitly authorized by               
statute.  HB 353 provides statutory authorization to incorporate               
updated versions of any of the items listed on pages 2-3, as long              
as the appropriate notification requirements are met.  Notification            
requirements include publication in the Administrative Journal, as             
well as notification of other interested individuals, and the                  
regulations attorney in the Department of Law.  HB 353 is a                    
paperwork reduction measure.  Currently, state agencies must                   
distribute complete sets of regulations being re-promulgated for               
the purpose of incorporating an updated document.  If HB 353 is                
enacted, state agencies will be able to notice only the issue being            
updated.  HB 353 contains a specific list of codes which are                   
updated by various agencies each year; most of the items on the                
list for DHSS are the numeric codes used to identify medical                   
treatments and prescriptions for insurance and billing purposes.               
                                                                               
CHAIRMAN WILKEN asked Mr. Campbell to comment on the amendments                
before the committee.                                                          
                                                                               
MR. CAMPBELL stated Representative Kelly supports the three                    
amendments.                                                                    
                                                                               
CHAIRMAN WILKEN clarified that the amendment labeled Lauterbach A.1            
is Amendment #1 by Senator Leman; A.2 is Amendment #2, and the                 
conceptual amendment will be Amendment #3.                                     
                                                                               
SENATOR LEMAN moved to adopt Amendment #1.                                     
                                                                               
MR. CAMPBELL deferred to a representative from the Department of               
Labor to comment on Amendment #1.                                              
                                                                               
PAUL GROSSI, Director of the Division of Workers' Compensation in              
the Department of Labor (DOL), made the following comments.  The               
intent of Amendment #1 is to allow the adoption, in regulation, by             
reference of future editions of documents presently used.                      
Amendment #1 refers to the United States Department of Labor's                 
"Selected Characteristics of Occupations Defined in the Revised                
Dictionary of Occupational Titles," which describes both the                   
physical and mental demands of an occupation so that the Division              
of Workers' Compensation can determine whether an injured worker is            
capable of performing those duties.  Allowing DOL to use updated               
editions of that document requires a statutory change.  Mr. Grossi             
cautioned the amendment may need a technical change to ensure that             
all future references could be adopted because DOL changes the                 
names of the documents it uses.  The amendment refers to the United            
States Department of Labor's "Selected Characteristics of                      
Occupations Defined in the Revised Dictionary of Occupational                  
Titles."  That is the current publication available, however DOL is            
not using that edition, it uses the 1981 edition.  He suggested                
using language that refers to future amended versions, editions,               
revisions, or replacements.  DOL is currently looking at using a               
computerized system called "ONET" in the future.  That program will            
not be a revision of the Revised Dictionary, it will be an                     
electronic replacement.  DOL is in support of this legislation but             
the amendment may need to be revised.                                          
                                                                               
Number 461                                                                     
                                                                               
MR. CAMPBELL noted Jack Chenoweth, the bill drafter, was present.              
                                                                               
CHAIRMAN WILKEN asked if that technical change could be worked out             
among the interested parties and brought back to the committee.                
                                                                               
MR. CAMPBELL noted the bill was provided to the Department of Law              
which created the draft version from it.  The difference in the                
committee substitute is that the Department of Law suggested that              
a set of rules be created in the first section of the bill that                
occur within the Administrative Procedures Act.  Amendment #1                  
provides for the specificity required for that process in the                  
Department of Labor's actual code.                                             
                                                                               
CHAIRMAN WILKEN asked what committee the bill is next referred to.             
                                                                               
SENATOR GREEN replied the Senate State Affairs Committee.                      
                                                                               
CHAIRMAN WILKEN thought this issue might be appropriately addressed            
by the Senate Judiciary Committee.  He asked if Amendment #1 needs             
to be amended.                                                                 
                                                                               
JACK CHENOWETH, Assistant Attorney General, stated Mr. Grossi's                
concern is answered on page 2 of the existing bill.  Lines 15-21               
take into consideration the possibility that a document that is                
identified with a very specific title may have that title changed.             
The language on those lines reads:                                             
     (d)  A change in the form, format, or title in a future                   
     amended or revised version of a document or material                      
     incorporated by reference in a regulation under this section              
     does not affect the validity of the regulation ...."                      
The language goes on to say the regulation attorney shall correct              
the title in the Alaska Administrative Code under the editorial                
authority.  If the title cited in the language of Amendment #1                 
should change, and another document that serves the same purpose is            
substituted, the regulation attorney would simply update that in               
the regulation so that DOL could continue to make use of the most              
recent version of the document as the basis of whatever                        
applicability it may have.                                                     
                                                                               
Number 491                                                                     
                                                                               
SENATOR GREEN questioned whether that would be true even if the                
document precedes the revised dictionary of occupation titles.                 
                                                                               
MR. CHENOWETH said it would not.  The documents referenced in the              
bill would act as the baseline reference.                                      
                                                                               
MR. CAMPBELL stated the document adopted by DOL regulation is the              
"Selected Characteristics of Occupations Defined in the Revised                
Dictionary of Occupational Titles."  DOL would like to be using the            
current version which has not been adopted by regulation.                      
                                                                               
MR. GROSSI said that was incorrect.  The edition that was adopted              
by statute is not the revised edition, it is the "Selected                     
Characteristics of Occupations Defined in the Dictionary of                    
Occupational Titles."  DOL cannot update the version used, by                  
regulation, because it is strictly defined in statute.  That is one            
reason why DOL supports this amendment.                                        
                                                                               
CHAIRMAN WILKEN asked Mr. Campbell to work on the necessary                    
revisions and bring the bill back to the committee at a later date.            
                                                                               
SENATOR LEMAN suggested including language in the bill regarding               
the notification process that is similar to the standard language              
used when code upgrades occur.                                                 
                                                                               
Number 518                                                                     
                                                                               
SENATOR GREEN commented she has seen a couple of letters in                    
opposition to the bill.  She asked Mr. Campbell to address the                 
issues in those letters.                                                       
                                                                               
MR. CAMPBELL stated he is only aware of one letter of objection                
that was not sent to the sponsor nor any of the committees in which            
the bill has been heard.  The author of that letter did not address            
the topic of the bill.  The author is concerned about the nature of            
the computer program used to adopt uniform billing codes. That                 
concern may be valid but nothing in this bill addresses how Claim              
Check works.                                                                   
                                                                               
MR. CAMPBELL asked Chairman Wilken if he would like a new committee            
substitute prepared.                                                           
                                                                               
CHAIRMAN WILKEN said he would.                                                 

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