CS FOR HOUSE BILL NO. 295(STA) am "An Act relating to the publishing, furnishing, and contents of certain notices regarding regulations or rules of certain state agencies and entities; relating to distribution of the Alaska Administrative Code, Alaska Administrative Register, and supplements to the code or register; and providing for an effective date." This was the first hearing for this bill in the Senate Finance Committee. Co-Chair Wilken commented that this legislation would alter the manner through which the public is notified about meetings pertaining to State regulations. Senator Bunde moved to adopt the Finance committee substitute, Version 23-GH1145\I, as the working document. There being no objection, the Version "I" committee substitute was ADOPTED. CRAIG TILLERY, Chief Assistant Attorney, General-Statewide Section Supervisor, Environmental Section, Department of Law, testified via teleconference from an offnet site to explain that this legislation would serve to make advertising notices for proposed regulations in newspapers more readable and understandable by requiring less detail to be included in those notices. In addition, he stated that the legislation would make notice distribution methods via the Internet, mail, electronic mail and newspapers more consistent between State agencies. Furthermore, he noted that in certain specialized subject areas such as those pertaining to business situations or to persons who rely on the Internet for information, newspaper notices would no longer be required. Mr. Tillery stressed that "the key change" of this legislation would be to allow for abbreviated newspaper notices rather than the more detailed versions currently required. This change, he reiterated, would make notices more understandable and would reduce State advertising expenditures. He noted that while the proposed advertising notice format would continue to provide information pertinent to how a regulation is being changed, it would direct people to access the Alaska On-Line Public Notice system on the Internet or to a contact person at a State agency were more detailed information required. SFC 04 # 113, Side B 01:00 PM Mr. Tillery continued "that there are a number of discrepancies in notices as required by the Administrative Procedures Act (APA) and those required in State Statute as a result, he attested, of "historical accidents" when statutes were adopted prior to the enactment of the APA. Some of the discrepancies, he continued, are that while Statutes require notices to be advertised in three newspapers, others, such a those affecting the Teachers Retirement Board, the Judicial Retirement Board, and the Public Employees Retirement Board, allow a notice to be in a single newspaper because these individuals "have greater access to the Internet." Mr. Tillery informed the Committee that although the original bill included the Alaska Railroad, the Alaska Aerospace Development Corporation, the Alaska Housing Finance Corporation, and the Alaska Industrial Development and Export Authority (AIDEA), in the single notice requirement, the Version "I" committee substitute would require those agencies to publish notices in three newspapers. Another change incorporated into the Version "I" committee substitute, he continued, is that the newspaper notice requirement would be eliminated for highly specialized subject areas in which "the interested person relies heavily on the Internet or other means" such as a trade group for information. These affected groups, he shared, would include the Department of Community and Economic Development's Banking Securities and Corporations Division; Trust Act regulations; and the Department of Revenue's corporate income tax regulations. Mr. Tillery also pointed out that existing law requires the Lieutenant Governor to provide a paper copy of the Alaska Administrative Code to a clerk of a local governmental unit, at no cost, whether the clerk wants it or not. He stated that the Lieutenant Governor's office has notified the Department of Law that numerous municipalities have pointed out that this paper copy is unnecessary. The committee substitute would change current statute to specify that a municipality's clerk must request a copy and that they must pay for it. In addition, the Committee substitute would allow the clerk to elect to receive Internet assess to the Code at a reduced cost. Senator Hoffman asked whether the language change that would allow a notice to be run in one newspaper rather than three different newspapers is referenced in Sec. 13, subsection (2) on page six, beginning on line eight, which reads as follows. (2) published in a newspaper [ONE OR MORE NEWSPAPERS] of general circulation in [EACH JUDICIAL DISTRICT OF] the state; New Text Underlined [BRACKETED TEXT DELETED] Mr. Tillery stated that numerous statutes relating to newspaper notices are affected by this bill; specifically that Sections 3, 8, and 13 would allow for a single newspaper notice and that Sections 5, 6, 16, 17, and 25 would continue the current three newspaper notice requirement. He noted that the language allowing the use of abbreviated notices primarily pertains to the Americans with Disabilities Act (ADA) language requirements. Senator Hoffman pointed out that no single newspaper has a Statewide circulation. Therefore, he stated that a notice in one newspaper could negatively affect a notice's public exposure. Consequently, he argued that the cost savings "would not measure up to the lack of information" to the public. Mr. Tillery pointed out that only three entities: the Alaska Teachers Retirement Board; the Judicial Retirement System; and the Public Employees Retirement Board, would be allowed to advertise in only one paper. These three, he reiterated would be provided this measure because they utilize the Internet on a daily basis and are able to acquire information through their place of business via the Alaska On line Public Notice System or other means. He stressed that the reduced notice language would be limited to these three entities. Co-Chair Wilken recalled that concerns relating to this subject arose from the fact that previous pieces of legislation proposed to allow all notices to advertise in a single newspaper of general circulation. This bill, he stressed, limits that ability to the three aforementioned entities. He stated that the bill would also allow for abbreviated notices. Senator Olson stated that, despite the use of the Internet, it is disconcerting to attempt to deliver notices via one newspaper in such a large State. He asked, therefore, how he could reassure teachers and others that they would be adequately notified. Mr. Tillery responded that the use of such things as regular postal delivery mail, electronic mailings, labor unions and other associations, as well as entity representatives could further communications pertinent to a group. Senator Olson noted that people who rely on such newspapers as the Arctic Sound and the Nome Nugget for public notices, "might be unduly left in the dark." Senator Bunde, himself being a retired teacher, assured that such entities as the Teachers Retirement System (TRS) expend a great deal of money on member communication. Senator Olson asked the number of time-sensitive deadline oriented communiqués that might be delivered via the United States Postal Service. Senator Bunde reported that he is unaware of any "immediate nature" communiqués, as he noted that the majority of the notices regard meeting notices and agendas and "are proactive rather than reactive." Senator Hoffman voiced concern that the only place with Internet capability in rural areas is the school and that a lot of people are computer illiterate. Senator Olson affirmed that many people do not have Internet access. Senator Bunde moved to report the Senate Finance committee substitute from Committee with accompanying fiscal note and individual recommendations. There being no objection, SCS CS HB 295(FIN) was REPORTED from Committee with a negative $123,100 fiscal note, dated April 28, 2004 from the Office of Management and Budget. RECESS TO THE CALL OF THE CHAIR 1:11 PM / 12:03AM