05/09/2005 05:33 PM Senate FIN

                                                                                                                                
     CS FOR HOUSE BILL NO. 33(FIN)                                                                                              
     "An Act relating to  required notification of the Department of                                                            
     Commerce, Community,  and Economic Development, economic effect                                                            
     statements,  and regulatory flexibility analyses  regarding the                                                            
     adoption  of regulations that  may govern the conduct  of small                                                            
     businesses;  relating to a private cause of action,  regulation                                                            
     invalidation,   and   judicial  review   related  to   required                                                            
     notification,   economic  effect  statements,   and  regulatory                                                            
     flexibility  analyses for the adoption of regulations  that may                                                            
     govern  the conduct of small  businesses; and providing  for an                                                            
     effective date."                                                                                                           
                                                                                                                                
                                                                                                                                
This was  the second  hearing for  this bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
MIKE  PAWLOWSKI,   Staff  to  Representative  Kevin   Meyer,  bill's                                                            
sponsor, noted  that he was available to answer questions  regarding                                                            
the bill.                                                                                                                       
                                                                                                                                
Co-Chair  Wilken referenced  the  flow chart  titled  "Steps in  the                                                            
Regulation  Process  Under  HB 33"  [copy  on  file] that  had  been                                                            
discussed  during the  bill's  first hearing,  and  stated that  the                                                            
chart  should be  altered  to include,  at  "Step 5",  another  step                                                            
reflecting that the proposed  legislation should be also transmitted                                                            
to the Division  of Legal Services,  Legislative Affairs  Agency for                                                            
review. Legal  Services would notify  the Regulation Review  Agency,                                                            
the Senate  President,  and the Speaker  of the  House were  they to                                                            
foresee  a  problem  with  the  legislation.  This  step  should  be                                                            
included as a result of  2004 enacted legislation that was sponsored                                                            
by Senator Gene Therriault.                                                                                                     
                                                                                                                                
Co-Chair  Wilken  voiced  uncertainty  as  to  the  purpose  of  the                                                            
legislation  before  the Committee.  While HB  33 might  be a  "feel                                                            
good"  bill,  he  was unsure  as  to  whether  it  would  accomplish                                                            
anything  beyond what  should already  be being  conducted in  State                                                            
government.                                                                                                                     
                                                                                                                                
5:44:52 PM                                                                                                                    
                                                                                                                                
Co-Chair Green  spoke against creating  impediments to the  process,                                                            
as slowing the process down would be undesirable.                                                                               
                                                                                                                                
Mr. Pawlowski responded  that "serious discussions" about that issue                                                            
have  occurred  during  the bill's  committee  hearing  process.  In                                                            
response  to Co-Chair  Wilken's comments,  he noted  that the  chart                                                            
would be corrected  to reflect the  Division of Legislative  Audit's                                                            
role in the flow chart.                                                                                                         
                                                                                                                                
Mr. Pawlowski  shared that  "the experience  of the 25 other  states                                                            
that have  adopted  similar legislation  and the  experience at  the                                                            
federal  level is  that these  regulatory flexibility  analyses  and                                                            
building this into state  government has had significant savings for                                                            
small businesses  across the country". The Governor  Frank Murkowski                                                            
Administration  has participated in the efforts being  undertaken to                                                            
ensure that the process "could be absorbed and not slowed down".                                                                
                                                                                                                                
5:46:02 PM                                                                                                                    
                                                                                                                                
Co-Chair Wilken  asked whether a process has been  developed through                                                            
which to evaluate the success of this legislation.                                                                              
                                                                                                                                
Mr.  Pawlowski stated  that  it has  been  the experience  of  other                                                            
states,  that the  Regulatory  Review  Committee would  conduct  the                                                            
follow-up  evaluation.  The  goal  of  this flexibility   regulatory                                                            
analyses  process is  to lessen  "the burden"  on small businesses;                                                             
therefore that  occurrence would also indicate that  the process was                                                            
working. Some  states have also implemented  review provisions.  The                                                            
Legislature could also review it overtime.                                                                                      
                                                                                                                                
5:46:55 PM                                                                                                                    
                                                                                                                                
Co-Chair  Wilken suggested  that a  three-year  termination date  be                                                            
specified for this Act  and that a Legislative audit be conducted in                                                            
order to determine whether the program should be extended.                                                                      
                                                                                                                                
Co-Chair Green concurred.                                                                                                       
                                                                                                                                
Mr. Pawlowski  stated that  while he has  not discussed this  option                                                            
with Representative Meyer,  the issue had been raised before. One of                                                            
the reasons  that a termination date  was not specified in  the bill                                                            
was  due to  the determination  that  "trying to  change  regulatory                                                            
culture"  could  be  characterized  as  a  "glacial  change".  After                                                            
sharing  some previous regulatory  change  efforts, he allowed  that                                                            
incorporating a termination date would be acceptable.                                                                           
                                                                                                                                
Conceptual  Amendment  #1: This  amendment specifies  a termination                                                             
date of January  1, 2009. In addition, a report of  the program must                                                            
to be presented to the Legislature no later than March 15, 2008.                                                                
                                                                                                                                
Co-Chair Wilken moved Conceptual Amendment #1.                                                                                  
                                                                                                                                
There being no objection, Conceptual Amendment #1 was ADOPTED.                                                                  
                                                                                                                                
Co-Chair  Wilken  moved  to  report the  bill  from  Committee  with                                                            
individual recommendations and accompanying fiscal notes.                                                                       
                                                                                                                                
There  being no  objection, SCS  CS HB  33 (FIN)  was REPORTED  from                                                            
Committee with  zero fiscal note #7,  dated April 15, 2005  from the                                                            
Department  of  Environmental  Conservation;  zero fiscal  note  #9,                                                            
dated April  15, 2005  from the  Department of  Labor and  Workforce                                                            
Development;  indeterminate fiscal  note #10, dated April  13, 2005,                                                            
from the  Department of Law;  $95,100 fiscal  note #11, dated  April                                                            
15, 2005  from the Department  of Commerce,  Community and  Economic                                                            
Development;  and zero fiscal  note #12, dated  April 19, 2005  from                                                            
the Department of Health and Social Services.