Legislature(2013 - 2014)BELTZ 105 (TSBldg)

04/14/2014 01:30 PM Senate JUDICIARY


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 366 INVOLUNTARY COMMITMENT; FIREARMS TELECONFERENCED
Moved CSHB 366(JUD) Out of Committee
*+ HB 140 REGULATIONS: NOTICE, REVIEW, COMMENT TELECONFERENCED
Heard & Held
+ HB 127 OMBUDSMAN TELECONFERENCED
Heard & Held
+ HB 250 MEDICAL MALPRACTICE ACTIONS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
          HB 140-REGULATIONS: NOTICE, REVIEW, COMMENT                                                                       
                                                                                                                                
2:02:54 PM                                                                                                                    
CHAIR   COGHILL  reconvened   the  meeting   and  announced   the                                                               
consideration  of  HB  140.  "An Act  relating  to  the  proposed                                                               
adoption, amendment, or  repeal of a regulation;  and relating to                                                               
contact  with agencies  about regulations."  [This was  the first                                                               
hearing and CSHB 127(FIN) am was before the committee.]                                                                         
                                                                                                                                
2:03:24 PM                                                                                                                    
REPRESENTATIVE LORA  REINBOLD, Alaska State  Legislature, Juneau,                                                               
Alaska, sponsor  of HB  140, explained  that this  legislation is                                                               
intended to  address the problem  of government  over regulation,                                                               
which local businesses  believe is stifling growth.  She read the                                                               
following excerpt  from the Alaska State  Medical Association and                                                               
stated  that it  was the  motivation to  continue her  mission to                                                               
help reform the regulatory process:                                                                                             
                                                                                                                                
     The  regulatory process  is deficient  and closed.  The                                                                    
     Department  of  Law's  advice  to  departments  on  the                                                                    
     regulatory  process  dissuades   public  discussion  or                                                                    
     discourse  once   a  regulatory  package   is  released                                                                    
     publicly.  In fact,  departments  are often  instructed                                                                    
     not   to  answer   questions   or  provide   additional                                                                    
     information  during  the  public  hearings  except  for                                                                    
     pointing  to   the  exact  language  in   the  proposed                                                                    
     regulation. This  leads to a frustrating  and seemingly                                                                    
     meaningless public  process, beyond  submitting written                                                                    
     comment.  Furthermore, once  public hearings  are held,                                                                    
     there is  no requirement that the  final regulations be                                                                    
     similar to the proposed regulation.                                                                                        
                                                                                                                                
REPRESENTATIVE REINBOLD described HB 140 as a significant step                                                                  
toward increased transparency in the regulatory process and a                                                                   
more business-friendly climate in Alaska.                                                                                       
                                                                                                                                
She provided the following sectional analysis: [Original                                                                        
punctuation provided.]                                                                                                          
                                                                                                                                
     Bill section 1. Gives the Act a short title.                                                                               
                                                                                                                                
     Bill section  2. Amends  AS 44.62.040(c) to  remove the                                                                    
     exemption for boards and  commissions. Adds language to                                                                    
     accommodate  those agencies  that have  different rules                                                                    
     for the  adoption of  regulations. Allows  the governor                                                                    
     30 days to return regulations to the adopting agency.                                                                      
                                                                                                                                
     Bill  section 3.  Amends  AS  44.62.190(d) to  identify                                                                    
     additional  information   that  may  be   included,  if                                                                    
     applicable, about  the reason for the  proposed action,                                                                    
     including  federal   or  state  action   requiring  the                                                                    
     proposed  action.  Adds  information   that  is  to  be                                                                    
     provided  for   the  estimated  annual  costs   of  the                                                                    
     proposed  action,   including  the  costs   to  private                                                                    
     persons,  other  state  agencies,  and  municipalities.                                                                    
     States that the estimated annual  costs are to be based                                                                    
     on  a good  faith effort  to estimate  the costs  using                                                                    
     information available to the state agency.                                                                                 
                                                                                                                                
     Bill  section 4.  Adds new  subsections  to the  notice                                                                    
     statute,  AS 44.62.190.  The first,  sec. 44.62.190(f),                                                                    
     prohibits  court  actions  to  challenge  a  regulatory                                                                    
     action for the inaccuracy  or insufficiency of the cost                                                                    
     estimates. The second,  sec. 44.62.190(g), requires, as                                                                    
     feasible,  that the  subject lines  of electronic  mail                                                                    
     and  titles  of   written  publications  providing  the                                                                    
     information  required  by   AS  44.62.190(d)  give  the                                                                    
     reader a  fair idea  of the  substance of  the proposed                                                                    
     regulation,    amended    regulation,    or    repealed                                                                    
     regulation.                                                                                                                
                                                                                                                                
     Bill section 5. Amends  AS 44.62.200(c) to require that                                                                    
     a  complete copy  of each  regulatory  action, and,  if                                                                    
     feasible,  the material  incorporated by  reference, be                                                                    
     posted on the Alaska Online Public Notice System.                                                                          
                                                                                                                                
     Bill section  6. Amends AS  44.62.200(d) to  remove the                                                                    
     exemptions  for the  Regulatory  Commission of  Alaska,                                                                    
     the Board  of Fisheries,  and the  Board of  Game, from                                                                    
     the requirement  to provide a brief  description of the                                                                    
     changes  made  by   the  proposed  regulation,  amended                                                                    
     regulation, or repealed regulation.                                                                                        
                                                                                                                                
     Bill  section 7.  Adds sec.  44.62.213(a) to  authorize                                                                    
     contact   between   agencies   and  the   public   when                                                                    
     developing regulations.  Adds sec.  44.62.213(b), which                                                                    
     directs agencies to make a  good faith effort to answer                                                                    
     written  or  at  meeting questions  before  the  public                                                                    
     comment period  ends. After that,  allows an  agency to                                                                    
     answer the questions. Requires an  answer to be written                                                                    
     and that the  question and answer be  made available to                                                                    
     the  public.  In  sec.  44.62.213(c),  prohibits  court                                                                    
     actions  to  challenge  a  regulatory  action  for  the                                                                    
     inaccuracy or  insufficiency of answers  provided under                                                                    
     sec. 44.62.2 13.                                                                                                           
                                                                                                                                
     Bill section 8. Amends  AS 44.62.215, which requires an                                                                    
     agency  to  keep  a  record   of  public  comment  when                                                                    
     adopting  a regulation,  to  delete  the exemption  for                                                                    
     boards and  commissions and to  require that  an agency                                                                    
     keep    a   record    of   public    comment   received                                                                    
     electronically or orally as well as in writing.                                                                            
                                                                                                                                
     Bill section  9. Amends AS  44.62.245(c) to  require an                                                                    
     agency to  send certain notices  to the members  of the                                                                    
     Administrative Regulation Review Committee.                                                                                
                                                                                                                                
     Bill  section 10.  Amends AS  44.62.320(b)  to tie  the                                                                    
     submission  of regulations  by the  lieutenant governor                                                                    
     to the  Administrative Regulation Review  Committee for                                                                    
     review to the  time the regulation is  submitted to the                                                                    
     lieutenant governor for filing.                                                                                            
                                                                                                                                
     Bill  section  11. Amends  AS  44.62.320  to allow  the                                                                    
     Administrative  Regulation  Review Committee  chair  to                                                                    
     submit  comment  on  a  regulation  to  the  lieutenant                                                                    
     governor within 10 days  after receiving the regulation                                                                    
     from the agency under (b) of the section.                                                                                  
                                                                                                                                
     Bill section 12.  Provides applicability provisions for                                                                    
     the sections of the bill.                                                                                                  
                                                                                                                                
REPRESENTATIVE REINBOLD  mentioned the indeterminate  fiscal note                                                               
and stated that  her office was talking with  certain agencies to                                                               
see,   based  on   input  from   this  committee,   whether  they                                                               
potentially need  to be exempted  from certain provisions  in the                                                               
bill.                                                                                                                           
                                                                                                                                
SENATOR COGHILL  recalled that the  exemptions relate  to Section                                                               
6.                                                                                                                              
                                                                                                                                
REPRESENTATIVE  REINBOLD offered  to  return and  talk about  the                                                               
specific provisions.                                                                                                            
                                                                                                                                
SENATOR WIELECHOWSKI  directed attention  to the letter  from the                                                               
Alaska  Oil   and  Gas   Conservation  Commission   (AOGCC)  that                                                               
expressed concerns with  the bill. One concern  was that, "giving                                                               
the Governor veto power over the  decisions of an agency that is,                                                               
by   design  and   statute,   independent   would  violate   that                                                               
independence."  He questioned  whether it  wouldn't be  better to                                                               
strip Section 2 from the bill.                                                                                                  
                                                                                                                                
REPRESENTATIVE   REINBOLD   referenced    the   memorandum   from                                                               
Legislative  Legal  Services  that   addresses  the  question  of                                                               
whether a  quasi-judicial entity  ought to  be excluded  from the                                                               
bill.                                                                                                                           
                                                                                                                                
CHAIR COGHILL asked  the sponsor to provide the  committee a copy                                                               
of the opinion. He asked  her understanding of the question about                                                               
the governor's veto power.                                                                                                      
                                                                                                                                
REPRESENTATIVE REINBOLD  stressed the  nothing in the  bill gives                                                               
veto power to  anyone. Section 2 does allow the  governor to send                                                               
a regulation back  to an agency for two reasons.  The first is if                                                               
the regulation is  inconsistent with law. The second  is that the                                                               
governor may send the regulation  back [so the agency can respond                                                               
to specific issues that were raised.]                                                                                           
                                                                                                                                
SENATOR  WIELECHOWSKI  questioned  giving the  governor  what  is                                                               
tantamount to  veto power  over agencies  that are  set up  to be                                                               
independent.                                                                                                                    
                                                                                                                                
CHAIR  COGHILL referenced  Section 11  and asked  if 10  days was                                                               
sufficient  for the  Administrative  Regulation Review  Committee                                                               
(ARRC) to review a regulation.                                                                                                  
                                                                                                                                
REPRESENTATIVE  REINBOLD  opined  that  it was  adequate  if  the                                                               
committee is active and has good staff.                                                                                         
                                                                                                                                
SENATOR  MCGUIRE  said  she  believes that  10  days  strikes  an                                                               
appropriate  balance   and  she  likes  that   the  provision  is                                                               
discretionary  with regard  to submitting  the regulation  to the                                                               
lieutenant governor.  She offered  personal experiences  when she                                                               
chaired the committee.                                                                                                          
                                                                                                                                
CHAIR  COGHILL   noted  the   individuals  available   to  answer                                                               
questions.                                                                                                                      
                                                                                                                                
2:18:54 PM                                                                                                                    
SENATOR WIELECHOWSKI  noted that  AOGCC's first concern  was that                                                               
the bill  would force  commissioners to  participate in  ex parte                                                               
communications.  He  asked  the  sponsor  her  thoughts  on  that                                                               
concern.                                                                                                                        
                                                                                                                                
REPRESENTATIVE  REINBOLD responded  that there  was nothing  that                                                               
requires   a   commissioner   to    participate   in   ex   parte                                                               
communications.                                                                                                                 
                                                                                                                                
SENATOR  WIELECHOWSKI   read  the  explanation  from   AOGCC  and                                                               
summarized  that  the commissioners  are  saying  that they  make                                                               
their decisions  in the public,  but the bill would  allow people                                                               
to  call  a  commissioner  and demand  an  explanation  of  their                                                               
reasons for a  proposed regulation or a change  in regulation. He                                                               
pointed out  that the public  can't engage  in that kind  of back                                                               
and forth with  judges and that's what raises the  ex parte issue                                                               
in the bill.                                                                                                                    
                                                                                                                                
REPRESENTATIVE  REINBOLD  responded  that the  commissioners  can                                                               
deal with  that through  a "frequently  asked questions"  page on                                                               
the website, they could have  staff respond to questions, or they                                                               
could hold a  public hearing and answer questions  then. The goal                                                               
is to ensure that people have  an opportunity to speak with their                                                               
government, but the communication doesn't have to be direct.                                                                    
                                                                                                                                
SENATOR WIELECHOWSKI  said he's very  supportive of parts  of the                                                               
bill, but is  concerned that decision makers who  are acting like                                                               
judges   would   be  required   to   participate   in  ex   parte                                                               
communications. He suggested including  a provision that excludes                                                               
quasi-judicial decisions.                                                                                                       
                                                                                                                                
REPRESENTATIVE   REINBOLD   responded  that   Legislative   Legal                                                               
Services issued an opinion that  said that just because an agency                                                               
is  independent  or  quasi-judicial  does  not  exclude  it  from                                                               
provisions in the  bill. However, there is a  statute that states                                                               
that the way  that the AOGCC writes regulations may  be cause for                                                               
concern. She said her office was  working with the chair of AOGCC                                                               
to address that issue.                                                                                                          
                                                                                                                                
CHAIR COGHILL advised that the  committee was working on a Senate                                                               
committee substitute that would address  some of the concerns and                                                               
still allow some review.                                                                                                        
                                                                                                                                
He opened public testimony.                                                                                                     
                                                                                                                                
2:22:47 PM                                                                                                                    
SARAH  GEARY, Legislative  Coordinator,  Alaska Municipal  League                                                               
(AML), Juneau,  Alaska, stated  support for HB  140 on  behalf of                                                               
AML. She  said that  because many  state and  federal regulations                                                               
impact  municipality budgets,  it would  be helpful  for planning                                                               
purposes to  have an idea of  what those impacts will  be. HB 140                                                               
will  ensure that  agencies consider  the costs  that regulations                                                               
potentially    impose    on    individuals,    businesses,    and                                                               
municipalities. She  expressed gratitude for the  attempt to look                                                               
at the broader impacts of regulation changes.                                                                                   
                                                                                                                                
2:24:11 PM                                                                                                                    
LESLEE OREBAUGH,  Assisted Living  Association of  Alaska (ALAA),                                                               
testified in  support of HB 140  on behalf of ALAA.  She said the                                                               
unintended  consequences  and  costs  of  regulations  have  long                                                               
plagued individuals and  the business industry in  the state. She                                                               
offered this  view from the  perspective of 24 years  of business                                                               
ownership.  Although government  officials  often  say that  they                                                               
have considered  private business,  it doesn't  appear to  make a                                                               
difference. She restated support for the legislation.                                                                           
                                                                                                                                
2:25:49 PM                                                                                                                    
AL TAMAGNI  Leadership Chair, National Federation  of Independent                                                               
Business (NFIB), Anchorage, Alaska,  said his comments echo those                                                               
of the previous  speaker. HB 140 gives the  business community an                                                               
opportunity to  voice opinions and  place some  responsibility on                                                               
agencies. It levels the playing  field by providing full and open                                                               
disclosure.                                                                                                                     
                                                                                                                                
2:26:58 PM                                                                                                                    
CHAIR  COGHILL   stated  he  would   hold  HB  140   for  further                                                               
consideration.                                                                                                                  
                                                                                                                                

Document Name Date/Time Subjects
HB 140 Supporting Documents - Regulation Process.pdf SJUD 4/14/2014 1:30:00 PM
HB 140
HB 140 Supporting Documents - Administrative Orders 266.pdf SJUD 4/14/2014 1:30:00 PM
HB 140
HB250-Position Paper-AMA Apology Inadmissibility Laws.pdf SJUD 4/14/2014 1:30:00 PM
HB 250
HB250-Letter of Support-American Medical Association.pdf SJUD 4/14/2014 1:30:00 PM
HB 250
HB250-Position Paper-Here & Now Radio Interview.pdf SJUD 4/14/2014 1:30:00 PM
HB 250
HB250-Position Paper-Journal of Health and Life Sciences.pdf SJUD 4/14/2014 1:30:00 PM
HB 250
HB250-Letter of Support-Central Peninsula Hospital.pdf SJUD 4/14/2014 1:30:00 PM
HB 250
HB250-Summary of Changes.pdf SJUD 4/14/2014 1:30:00 PM
HB 250
HB250-Letter of Support-Alaska State Hospital and Nursing Home Association.pdf SJUD 4/14/2014 1:30:00 PM
HB 250
HB250-Sponsor Statement.pdf SJUD 4/14/2014 1:30:00 PM
HB 250
HB250-Letter of Support-Alaska State Medical Association.pdf SJUD 4/14/2014 1:30:00 PM
HB 250
HB250-Sectional Analysis Version P.A.pdf SJUD 4/14/2014 1:30:00 PM
HB 250