03/18/2013 01:00 PM House JUDICIARY

             HB 140-NOTICE FOR REGULATION ADOPTION                                                                          
                                                                                                                                
2:35:14 PM                                                                                                                    
                                                                                                                                
CHAIR KELLER announced that the  final order of business would be                                                               
HOUSE  BILL NO.  140, "An  Act relating  to the  information that                                                               
must be included  with certain notices provided  for the proposed                                                               
adoption, amendment, or repeal of a regulation."                                                                                
                                                                                                                                
2:35:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   LORA   REINBOLD,   Alaska   State   Legislature,                                                               
explained that HB  140 is intended to address  what many consider                                                               
to be  too many regulations.   The purpose of  HB 140 is  to make                                                               
the government  and the  regulators aware of  the impacts  of the                                                               
regulations. She  opined that government agencies  and regulators                                                               
need to work collaboratively with  businesses and communities and                                                               
be  reminded  that they  work  for  the people.    Representative                                                               
Reinbold  then paraphrased  from the  written sponsor  statement,                                                               
which read:                                                                                                                     
                                                                                                                                
     Under current law, state  agencies that propose changes                                                                    
     to   the   Alaska   Administrative  Code,   our   state                                                                    
     regulations,   are   required   to   disclose   certain                                                                    
     information about the  regulation, including the reason                                                                    
     for  the proposed  action, costs  of implementation  of                                                                    
     the regulation  to the adopting  agency and  the origin                                                                    
     of the proposed regulation.                                                                                                
                                                                                                                                
     To  provide better  information about  regulations that                                                                    
     may  significantly   affect  private   individuals  and                                                                    
     businesses,    other   state    agencies   and    local                                                                    
     governments,  House Bill  140 requires  that regulation                                                                    
     notices  include  information   about  estimated  costs                                                                    
     beyond those to the agency.   In view of the increasing                                                                    
     reach  of the  Washington D.C.  into Alaska's  affairs,                                                                    
     the   bill  also   requires  that   when  the   federal                                                                    
     government is the reason for  the regulation, the exact                                                                    
     federal law, executive order  or decision be identified                                                                    
     in order  for Alaskans to better  understand government                                                                    
     actions that affect their businesses and lives.                                                                            
                                                                                                                                
     Open  government  is  a   great  American  and  Alaskan                                                                    
     tradition.  I  respectfully  request your  support  for                                                                    
     House Bill 140.                                                                                                            
                                                                                                                                
REPRESENTATIVE REINBOLD  then highlighted the letters  of support                                                               
from the Council of Alaska  Producers and the National Federation                                                               
of  Independent Business/Alaska  in members'  packets and  stated                                                               
that there are more letters of support to come.                                                                                 
                                                                                                                                
2:40:45 PM                                                                                                                    
                                                                                                                                
ROBERT  PEARSON,  Staff,  Representative  Lora  Reinbold,  Alaska                                                               
State  Legislature,  paraphrased  from  the  following  sectional                                                               
analysis, which read:                                                                                                           
                                                                                                                                
     Sec.  1 Short  title:  "Regulation Impact  Transparency                                                                    
     Act."   House   Bill   140  will   require   additional                                                                    
     information  in   state  agency  notices   of  proposed                                                                    
     regulations, specifically  to increase  transparency of                                                                    
     the  proposal's   fiscal  impacts,  including   to  the                                                                    
     private sector.                                                                                                            
     Sec. 2  Under current Alaska Statutes  44.62.190(d) the                                                                    
     agency  is  required  to  provide  a  "reason  for  the                                                                    
     proposed action." If the reason  given is "federal," HB
 will  require identification of the  federal action                                                                    
     that  is the  reason  for the  proposed regulation.  It                                                                    
     also adds  a requirement  to estimate  compliance costs                                                                    
     to  private  persons  (including  private  businesses),                                                                    
     other state agencies and municipalities.                                                                                   
     Sec. 3 Applicability:  applies to regulations proposals                                                                    
     noticed on or after the effective date of this act.                                                                        
                                                                                                                                
MR.  PEARSON then  directed attention  to  the document  entitled                                                               
"What does HB  140 do?" and noted that it's  a notice of proposed                                                               
regulations.    Page  2  of  this document  is  what's  known  as                                                               
additional regulations notice  information under AS 44.62.190(d),                                                               
which  is the  only  part of  the  law that  will  be changed  by                                                               
HB 140.   As specified on page  2, Section 2(1) will  require the                                                               
state agency  supply a reference/citation  of the federal  law or                                                               
other action that could include  anything from an executive order                                                               
to the combined  federal register.  The only other  change HB 140                                                               
would  make is  to  insert Section  2(3)(A),(B),  and (C),  which                                                               
would require  the estimated costs to  private individuals, other                                                               
state  agencies,  and  municipalities  will be  included  in  the                                                               
regulation notice.                                                                                                              
                                                                                                                                
2:44:06 PM                                                                                                                    
                                                                                                                                
MR.  PEARSON pointed  out  that the  fiscal note  for  HB 140  is                                                               
indeterminate and  highlighted the fiscal note  analysis language                                                               
that says, "... more detail is  needed as to whether the estimate                                                               
required is a  general estimate of impacts for a  group or set of                                                               
municipalities  or for  each individual  municipality, etc."   He                                                               
offered his belief  that the language in HB 140  is clear when it                                                               
refers  to  an  estimate  of  annual  costs.    He  acknowledged,                                                               
however, that it isn't a  number encompassing every person in the                                                               
state  who may  be  impacted  by the  regulations  but rather  is                                                               
simply  an estimate  of  costs  to the  impacted  entities.   The                                                               
agencies  should be  able  to  make an  estimate  based on  their                                                               
knowledge  of   the  regulations  and  community   to  which  the                                                               
regulations apply.                                                                                                              
                                                                                                                                
2:45:57 PM                                                                                                                    
                                                                                                                                
CHAIR KELLER expressed favor with HB 140.                                                                                       
                                                                                                                                
2:46:22 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MILLETT said  she likes  the concept  of HB  140.                                                               
She then asked who would  be responsible for making the estimates                                                               
of  annual costs.    If  the Office  of  Management  & Budget  is                                                               
responsible  for  making the  estimates,  she  surmised that  the                                                               
workload would increase significantly  or an economist would have                                                               
to be added to each department.                                                                                                 
                                                                                                                                
MR. PEARSON  answered that the  sponsor doesn't  anticipate major                                                               
personnel  requirements  for this  change.    He noted  that  the                                                               
regulations  notice always  has a  signature at  the bottom  of a                                                               
regulations  specialist, assistant  to the  commissioner who,  in                                                               
effect, is  the one  who signs  the estimate.   However,  in each                                                               
department  that promulgates  regulations,  there  are those  who                                                               
have  expertise in  the  area being  regulated.   The  regulation                                                               
specialist  would ask  for the  necessary information  to provide                                                               
the estimate and put  it in the notice.  The  thought is that the                                                               
departments  know   the  regulated  community  and   who  they're                                                               
regulating and  should know  to some degree  when they  propose a                                                               
regulation  whether  it  will  cost the  public  or  other  state                                                               
agencies and include that information.                                                                                          
                                                                                                                                
REPRESENTATIVE  LEDOUX  expressed  interest  in  hearing  whether                                                               
departmental  commissioners  would   anticipate  an  increase  in                                                               
staff.                                                                                                                          
                                                                                                                                
MR. PEARSON deferred to others who  may be better able to address                                                               
that question.                                                                                                                  
                                                                                                                                
2:49:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE REINBOLD relayed that she  is willing to work with                                                               
DOL  to  develop  language  that   would  make  this  legislation                                                               
possible.    She  then  emphasized  the need  for  the  state  to                                                               
identify from where  the regulations are coming  and do long-term                                                               
thinking.   She  mentioned that  as chair  of the  Administrative                                                               
Regulation Review  Committee she plans  to hold hearings  on this                                                               
issue, and thus there should be more information forthcoming.                                                                   
                                                                                                                                
CHAIR  KELLER  expressed  interest  in hearing  from  the  Alaska                                                               
Municipal League  (AML), particularly since the  legislature does                                                               
impose mandates that cost [municipalities] money.                                                                               
                                                                                                                                
2:50:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX  inquired which department  promulgates the                                                               
most regulations.                                                                                                               
                                                                                                                                
MR. PEARSON  answered that the Department  of Commerce, Community                                                               
&   Economic  Development   (DCCED),  with   its  licensing   and                                                               
professional boards, is the largest promulgator of regulations.                                                                 
                                                                                                                                
REPRESENTATIVE LEDOUX  suggested that  the commissioner  of DCCED                                                               
be invited to speak at the next hearing on HB 140.                                                                              
                                                                                                                                
2:51:53 PM                                                                                                                    
                                                                                                                                
CATHY  P.   FOERSTER,  Chair,  Alaska  Oil   &  Gas  Conservation                                                               
Commission  (AOGCC), Department  of Administration,  provided the                                                               
following testimony:                                                                                                            
                                                                                                                                
     From   the  perspective   of  the   AOGCC  HB   140  is                                                                    
     problematic  in its  current wording.   The  commission                                                                    
     does not wish  to be in the position  of conceding that                                                                    
     federal law  or a federal  court decision does  or even                                                                    
     could  require us  to promulgate  regulations.   And  I                                                                    
     think  that  statement speaks  for  itself,  it sets  a                                                                    
     state's rights  precedent that is  counter to  where we                                                                    
     [AOGCC] sit;  we make regulations based  on what's best                                                                    
     for the  citizens of Alaska,  based on what we  do here                                                                    
     in Alaska.                                                                                                                 
                                                                                                                                
MS. FOERSTER then expressed AOGCC's  concern that it doesn't have                                                               
the time, resources,  or expertise to make a  determination as to                                                               
the economic impact  on all the listed entities.   The AOGCC, she                                                               
highlighted,  has  a  process  in  place  such  that  during  the                                                               
promulgation of  regulations ample public notice  of the proposed                                                               
regulations,  additions, or  changes is  included.   Furthermore,                                                               
hearings  on  those  changes are  noticed  and  written  comments                                                               
before or during  the hearing are welcome as is  testimony at the                                                               
hearing  itself.   She  noted that  generally  lots of  comments,                                                               
including the  parties' estimates of  the economic impact  of any                                                               
regulation changes are received.   The process, she opined, works                                                               
really  well,  even  though  the  AOGCC  doesn't  have  financial                                                               
experts.  From  conversations with DOL, Ms.  Foerster related her                                                               
understanding  that  with  a   bit  of  collaborative  "tweeking"                                                               
AOGCC's  concerns with  HB 140  can be  addressed.   Ms. Foerster                                                               
clarified that she isn't stating  opposition to HB 140 but rather                                                               
believes it  should receive the  thought and  attention necessary                                                               
to ensure that it says what is desired.                                                                                         
                                                                                                                                
2:55:01 PM                                                                                                                    
                                                                                                                                
CHAIR KELLER announced that HB 140 would be set aside.                                                                          
                                                                                                                                
REPRESENTATIVE  REINBOLD related  her expectation  for push  back                                                               
from the government  as it's not accustomed to  "looking down the                                                               
road."   Therefore, Representative  Reinbold said she  is willing                                                               
to work  with the departments in  hopes that they are  willing to                                                               
partner with industry  in order to move the  state forward toward                                                               
the goal of a long-term sustainable future for the state.