04/08/2013 01:00 PM House JUDICIARY

             HB 140-NOTICE FOR REGULATION ADOPTION                                                                          
                                                                                                                                
2:24:14 PM                                                                                                                    
                                                                                                                                
CHAIR KELLER announced  that the next 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."                                                                                
                                                                                                                                
2:24:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LYNN moved to  adopt proposed committee substitute                                                               
(CS) for HB 140, Version  28-LS0478\C, Bannister, 3/26/13, as the                                                               
work draft.                                                                                                                     
                                                                                                                                
CHAIR KELLER objected for discussion purposes.                                                                                  
                                                                                                                                
2:25:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LORA REINBOLD,  Alaska State Legislature, speaking                                                               
as the  sponsor of HB 140,  began by noting that  the legislation                                                               
had  been changed  in response  to members'  concerns.   She then                                                               
reminded the  committee that the  current law specifies  that the                                                               
agency promulgating  a regulation has  to specify the  impacts of                                                               
that regulation on the agency.   However, the agency promulgating                                                               
the regulation doesn't have to  access the impacts to other state                                                               
agencies, municipalities, or the  private sector.  Representative                                                               
Reinbold  then  turned over  the  presentation  of Version  C  to                                                               
staff.                                                                                                                          
                                                                                                                                
2:27:23 PM                                                                                                                    
                                                                                                                                
KRISTA  VONBERGEN, Staff,  Representative  Lora Reinbold,  Alaska                                                               
State Legislature, reviewing Version  C, explained that Section 1                                                               
is unchanged  as is the language  on page 1, line  6 through page                                                               
2, line  1.  However, language  in Section 2 has  been changed to                                                               
include a  new notice requirement  with which agencies  will have                                                               
to  comply when  announcing  regulations.   The requirement  will                                                               
require  agencies,  in  a  sentence or  two,  to  identify  which                                                               
regulations in  a package are  required/mandated by  federal law.                                                               
She ventured that compliance  with the aforementioned requirement                                                               
should be easy  for the agencies to meet since  they already have                                                               
to know  whether a federal  regulation/law requires them  to take                                                               
action before  they even begin  drafting the regulation.   At the                                                               
beginning of  the regulatory process,  agencies know  whether and                                                               
which regulations in  their packages are required  or mandated in                                                               
federal law.   Section 2 merely requests they  share that already                                                               
compiled  information  with  Alaskans.     Section  2  also  adds                                                               
language  requiring  state  agencies  to include  notice  to  the                                                               
public of  the good faith  estimate of  the costs imposed  by the                                                               
new  regulations   on  private  individuals,   businesses,  state                                                               
agencies,  and municipalities.   Ms.  Vonbergen highlighted  that                                                               
the  aforementioned  is  an important  part  of  the  legislation                                                               
because existing  law only  requires state  agencies promulgating                                                               
regulations to review the impacts and  costs to that agency.  She                                                               
clarified  that  this review  isn't  intended  to be  a  detailed                                                               
McDowell  Group   level  analysis  of  the   estimated  costs  of                                                               
regulations.  Instead, the language  simply requires a good faith                                                               
effort  by the  agency to  estimate the  costs in  the aggregate.                                                               
Version O,  she pointed out,  includes a new section,  Section 3,                                                               
which  clarifies that  there  is no  right to  sue  based on  the                                                               
agency's duties  to prepare  an estimate.   Therefore,  Section 3                                                               
clarifies that  it's an informational  effort for the  benefit of                                                               
Alaskans and not  for the litigation battlefield.   Section 4 was                                                               
Section 3  in the  original legislation and  makes it  clear that                                                               
the notice  for requirements  in the legislation  only apply   to                                                               
regulations   announced  after   the   effective   date  of   the                                                               
legislation.                                                                                                                    
                                                                                                                                
2:31:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  asked  whether the  current  effective                                                               
date is  adequate for  purposes of the  state complying  with the                                                               
requirements in HB 140.                                                                                                         
                                                                                                                                
2:32:50 PM                                                                                                                    
                                                                                                                                
STEVE   WEAVER,  Assistant   Attorney   General,  Legislation   &                                                               
Regulations Section, Civil Division  (Juneau), Department of Law,                                                               
said  he  isn't  in  a  position to  speak  to  particular  state                                                               
agencies regarding whether they would be  able to get up to speed                                                               
on  this proposal  or not.    Although a  delayed effective  date                                                               
certainly might be helpful, it  would be partially dependent upon                                                               
the information each state agency has on hand.                                                                                  
                                                                                                                                
2:34:10 PM                                                                                                                    
                                                                                                                                
ARNOLD  LEIBELT,  Policy  Analyst,  Office of  the  Management  &                                                               
Budget  (OMB),  Office of  the  Governor,  regarding whether  the                                                               
effective  date of  the legislation  should be  delayed, answered                                                               
that  it  depends  upon  the  type  of  legislation  [from  which                                                               
regulations would  be promulgated], which  is why the  OMB fiscal                                                               
note   is  indeterminate.   He opined  that the  legislation adds                                                               
another  level   of  complexity  that  is   responsibilities  for                                                               
agencies, particularly  those departments that tend  to have more                                                               
regulations than others.  For example,  the Board of Game and the                                                               
Board of Fisheries  receive up to 400 proposals per  year, so the                                                               
proposal  in   this  legislation  would  be   more  difficult  to                                                               
implement than others.  Therefore, it's difficult to speculate.                                                                 
                                                                                                                                
2:35:32 PM                                                                                                                    
                                                                                                                                
CHAIR KELLER  questioned whether  that means OMB  isn't concerned                                                               
with the potential costs.                                                                                                       
                                                                                                                                
MR. LIEBELT  replied no,  OMB is  concerned with  the costs.   In                                                               
fact, the  notice requirements for  the regulations  specify that                                                               
agencies  and departments  must pay  particular attention  to the                                                               
costs of regulations.  Currently,  state agencies are responsible                                                               
for  identifying  the  cost  impact of  the  regulations  to  the                                                               
impacted state agency alone.   Through the public hearing process                                                               
the  cost   is  revealed   from  municipalities,   industry,  and                                                               
individuals.   That cost information  provided during  the public                                                               
hearing process is taken into  consideration when the regulations                                                               
are drafted.                                                                                                                    
                                                                                                                                
2:36:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG pointed  out  the  language in  Section                                                               
2(d)(1)  only refers  to  the  federal court  as  one that  might                                                               
impose a regulatory  requirement.  He questioned  whether a state                                                               
court should  also be included  in the ambit of  the legislation.                                                               
The  state  would  know  if  it  was  something  imposed  by  the                                                               
legislature.  However,  the state might not know for  a period of                                                               
time whether a state court might  have imposed that.  He reminded                                                               
the  committee  that the  annual  book  members receive  includes                                                               
briefs for  which legislative action  may be required by  a court                                                               
decision.   He opined that  [HB 140] is  doing the same  thing to                                                               
administrative agencies,  and thus it  may be a number  of months                                                               
until  the  annual report  is  available  before the  legislature                                                               
knows   what  the   Superior  Court   in   Anchorage  had   done.                                                               
Representative Gruenberg  suggested that  adding state  courts to                                                               
the legislation may be something to consider.                                                                                   
                                                                                                                                
REPRESENTATIVE REINBOLD said she would accept such an amendment.                                                                
                                                                                                                                
2:39:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  noted  that typically  a  short  title                                                               
isn't given to legislation that  simply amends other legislation.                                                               
Therefore, he  inquired as  to whether the  sponsor is  wedded to                                                               
having the proposed short title for HB 140.                                                                                     
                                                                                                                                
REPRESENTATIVE REINBOLD replied yes  as she believes the proposed                                                               
short title is important to have.                                                                                               
                                                                                                                                
2:40:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  REINBOLD  then  offered  her  understanding  that                                                               
federal agencies [already have to do  what HB 140 proposes].  For                                                               
example, the federal agencies have  to determine whether proposed                                                               
regulations impose an information  collection burden.  Therefore,                                                               
the proposal  in HB 140 merely  shadows what is already  in place                                                               
at the  federal level.   She then highlighted letters  of support                                                               
for  HB 140,  including letters  from the  Wasilla Area  Seniors,                                                               
Inc., the  National Federation of Independent  Business - Alaska,                                                               
and  the  Alaska  State  Chamber  of  Commerce.    Representative                                                               
Reinbold emphasized her desire to  avoid the "little guy" getting                                                               
overwhelmed  by  the  process  due  to  oversight  or  unintended                                                               
consequences.   The legislation, she  pointed out, includes  a no                                                               
harm clause as  well as an aggregate [of the  impacts].  She also                                                               
highlighted  that  the  Alaska Municipal  League  (AML)  is  very                                                               
supportive of HB 140.                                                                                                           
                                                                                                                                
2:41:52 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  made  a  motion  to  adopt  Conceptual                                                               
Amendment 1, as follows:                                                                                                        
                                                                                                                                
     Page 1, line 12, following "federal"                                                                                       
          Insert "or state"                                                                                                     
                                                                                                                                
REPRESENTATIVE LEDOUX objected for purposes of discussion.                                                                      
                                                                                                                                
REPRESENTATIVE  GRUENBERG explained  that the  legislation should                                                               
also apply to state courts.                                                                                                     
                                                                                                                                
REPRESENTATIVE  LEDOUX removed  her  objection.   There being  no                                                               
further objection, Conceptual Amendment 1 was adopted.                                                                          
                                                                                                                                
2:43:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LYNN  moved  to  report  CSHB  140,  Version  28-                                                               
LS0478\C, Bannister,  3/26/13, as amended, out  of committee with                                                               
individual  recommendations  and  the  accompanying  zero  fiscal                                                               
note.  There being no  objection, CSHB 140(JUD) was reported from                                                               
the House Judiciary Standing Committee.