Legislature(2015 - 2016)CAPITOL 106
03/17/2016 08:00 AM House STATE AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| HB259 | |
| HB229 | |
| HB351 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 276 | TELECONFERENCED | |
| *+ | HB 351 | TELECONFERENCED | |
| *+ | HB 259 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 229 | TELECONFERENCED | |
| += | HCR 15 | TELECONFERENCED | |
HB 229-REPEAL ADMIN. REG. REVIEW COMMITTEE
8:23:24 AM
CHAIR LYNN announced that the next order of business would be
HOUSE BILL NO. 229, "An Act relating to regulation notice and
review by the legislature; and relating to the Administrative
Regulation Review Committee."
[Left pending from the House State Affairs Standing Committee
meeting on 3/15/16 was a motion by Representative Keller to
adopt Amendment 2, labeled 29-LS1104\A.4, Gardner, 3/10/16, with
an objection by Representative Stutes for the purpose of
discussion. The pending objection to the motion to adopt
Amendment 2 was treated as withdrawn.]
[Because of their length, some amendments discussed or adopted
during the meeting are found at the end of the minutes for HB
229. Shorter amendments are included in the main text.]
8:24:59 AM
REPRESENTATIVE MIKE CHENAULT, Alaska State Legislature, as prime
sponsor of HB 229, indicated that he had no objection to
Amendment 2, by Representative Keller. He said he had a few
concerns that could be addressed.
8:25:39 AM
REPRESENTATIVE KELLER moved to adopt Amendment 1 to Amendment 2,
labeled 29-LS1104\A.5, Gardner, 3/16/16. [Amendment 1 to
Amendment 2 is provided at the end of the minutes on HB 229.
The difference between Amendment 2 and Amendment 1 to Amendment
2 is the addition of Section 4, subsection (h), on page 3, lines
17-21, as numbered on Amendment 1 to Amendment 2.]
REPRESENTATIVE TALERICO objected for purpose of discussion.
8:26:25 AM
JIM POUND, Staff, Representative Wes Keller, Alaska State
Legislature, on behalf of Representative Keller, said that
Amendment 1 to Amendment 2 addresses a concern regarding the
effect that HB 229 would have on the ability of the Board of
Game and the Board of Fisheries to pass regulations. He
indicated that the language [in question] was on page 2,
beginning on line 27 [as numbered on Amendment 1 to Amendment 2]
and was in Section 4, subsection (f) [of Amendment 2]. The
proposed amendment addresses that concern [by the addition of
subsection (h)]. He offered that the Twenty-Eighth Alaska State
Legislature previously addressed this same concern in passing
House Bill 140 in which exemptions were made for the following
quasi-judicial agencies: the Board of Game, the Board of
Fisheries, the Regulatory Commission of Alaska (RCA), and the
Alaska Oil and Gas Conservation Committee (AOGCC). He stated
that Amendment 1 to Amendment 2 would allow the regulations and
the regulatory process within these agencies to remain intact.
8:27:36 AM
REPRESENTATIVE KREISS-TOMKINS remarked that Amendment 1 to
Amendment 2 was lengthy and included many citations. He
queried whether the committee might benefit from a more detailed
explanation of the entire amendment. He also asked which
document was being called Amendment 1 to Amendment 2.
8:28:06 AM
MR. POUND clarified that the document labeled A.5 was Amendment
1 to Amendment 2.
8:28:52 AM
REPRESENTATIVE KELLER, in response to Representative Kreiss-
Tomkins, maintained that the committee had already heard a
detailed explanation of Amendment 2. He recommended adoption
of Amendment 1 to Amendment 2 for further discussion.
8:29:23 AM
REPRESENTATIVE TALERICO withdrew his objection. There being no
further objection, Amendment 1 to Amendment 2 was adopted.
8:29:34 AM
REPRESENTATIVE KELLER, in response to Chair Lynn, clarified that
the committee members now had Amendment 2, as amended, before
them for discussion.
8:29:50 AM
MR. POUND explained that [Amendment 2, as amended] would change
the title of HB 229, in Section 1, by inserting "providing for
legislative review, amendment, approval, disapproval, annulment,
and delay of proposed agency regulations", following
"legislature;", on page 1, line 1. He stated that Section 3
would be renamed Section 2, and that Section 2 would put AS
44.62.320(d) back into the statute - that is, review of
regulations by the legislature. He added that Section 2 would
authorize without question the jurisdiction of committees to
review proposed regulations. Mr. Pound referred to Section 3,
subsection (d), and noted the 35-day time period for committees
to take action on a regulation, after which time a department
could proceed with implementation. He pointed out that 35 days
is within the normal public comment period.
MR. POUND continued by describing the process by which the
legislature could temporarily disapprove a regulation, outlined
in Section 4 of Amendment 2. This process would allow a
department to amend a regulation to comply with legislative
intent or, if the department refused, would delay the regulation
until the next legislative session, at which time the committee
could introduce legislation to disapprove the regulation. Mr.
Pound stated that Section 3 consists of the review criteria for
a regulation - that is, the regulation meets the requirements of
the statute, follows legislative intent, and meets certain cost
requirements. He stated that Section 3 returns AS 44.62.320(d)
to the statute.
MR. POUND referred to Section 10 of Amendment 2, which states
that the departments must review any amendments proposed by the
legislature and, if no action is taken during the legislative
session, the regulation would be implemented the day after the
end of session. He also noted that Section 10 states that
regulations would be submitted to the presiding officer of each
house, since HB 299 would eliminate the Administrative
Regulation Review Committee. Mr. Pound then referred to Section
12, which explains that new language for regulations would be
displayed in the same format as new language for legislation for
ease of review.
MR. POUND explained that through the changes in Section 13 of
Amendment 2, the proposed legislation would require the
department to provide fiscal notes on regulations detailing how
much a regulation would cost the department, the division, and
the public. He went on to cite Sections 16 and 17 which would
require the cost information to be submitted to presiding
officers who in turn would submit the information to the
committee of jurisdiction for review. Mr. Pound said that
Section 18 states that the presiding officers would receive a
copy of the regulations in a timely manner, and Section 19
details the annulment process, already described.
8:37:52 AM
REPRESENTATIVE KREISS-TOMKINS asked Mr. Pound to verify that
under the proposed Amendment 2 the annulment process would be as
follows: if a committee voiced disapproval of a proposed
regulation, the regulation would not be implemented until the
end of the legislative session giving the committee the
opportunity to put forth legislation that would effectively
nullify the proposed regulation, and then, if the legislature
failed to pass legislation to nullify the regulation, the
regulation would go into effect at the adjournment of the
session.
MR. POUND agreed but stressed that the committee would not be
able to annul a regulation. He stated a committee could put a
hold on the implementation of a regulation.
8:39:04 AM
REPRESENTATIVE VAZQUEZ lamented there had been little time to
review the eight-page amendment. She asked how emergency
regulations would be handled by the proposed amendment.
MR. POUND responded that the only change made by the adopted
Amendment 1 to Amendment 2 [by Amendment 1] is found in Section
4, subsection (h), on page 3, lines 17-21, and names the
organizations that would be exempt [from regulation suspension]
- Board of Fisheries, Board of Game, RCA, AOGCC, Office of
Victims' Rights (OVR), and the Alaska Office of the Ombudsman -
and also mentions the exemption for emergency regulations.
REPRESENTATIVE VAZQUEZ asked whether the proposed amendment
includes emergency regulations from the Department of Health and
Social Services (DHSS), Division of Public Health (DPH).
MR. POUND confirmed that emergency regulations are included in
the proposed amendment.
REPRESENTATIVE VAZQUEZ asked if an agency can decide to name a
regulation as an emergency regulation to be included in the
exemption.
MR. POUND responded that there is existing language in AS 44.62
regarding emergency regulations, and if a department wished to
extend them, it would have to go through the regulatory process.
8:42:35 AM
The committee took an at-ease from 8:42 a.m. to 8:43 a.m.
8:43:49 AM
REPRESENTATIVE VAZQUEZ referred to AS 44.62.250, titled
"emergency regulations", which states that departments are
allowed to issue emergency regulations if, and she quoted from
the statute, "necessary for the immediate preservation of the
public peace, health, safety, or general welfare."
8:44:30 AM
REPRESENTATIVE STUTES removed her objection to Amendment 2, as
amended. Without further objection, Amendment 2, as amended,
was adopted.
REPRESENTATIVE KELLER called attention to the copy of an e-mail
in the committee packet, addressed to Mr. Pound, staff to
Representative Keller, and Nancy Manly, staff to Representative
Lynn, from Natasha McClanahan, Assistant Legislative Director,
and Office of the Governor, which describes the fiscal impact of
Amendment 2. Representative Keller noted the zero fiscal note
attached to the amendment and asked the committee to adopt the
zero fiscal note. He asked Mr. Pound to respond to the items in
the e-mail for the committee members.
8:46:53 AM
The committee took a brief at-ease at 8:47 a.m.
8:47:05 AM
MR. POUND stated that the e-mail described concerns from the
departments and agencies concerning the delay of regulations.
Mr. Pound expressed his observation that since legislation often
takes two years to pass, there is already a delay. He added
that when a department introduces a regulation, within 90 days
it becomes the "law of the land" and no review is required. He
cited one agency's claim on page 2 of the e-mail that $164,000
would be needed to hire a regulation specialist to analyze
legislation. Mr. Pound contended that it already was the
responsibility of the departments and agencies to analyze bills
so that the regulations they created met legislative intent, and
that the purpose of the proposed amendment was to make sure they
fulfilled that responsibility. He voiced his agreement with the
sponsor that Amendment 2, as amended, should have a zero fiscal
note.
8:49:10 AM
REPRESENTATIVE KELLER moved to adopt the zero fiscal note, the
fiscal note from the Department of Law (DOL), and the negative
fiscal note. Without objection, it was so ordered.
8:49:42 AM
REPRESENTATIVE VAZQUEZ expressed that she hasn't had opportunity
to review the lengthy document from the Office of the Governor
to legislative staff. She referred to the adopted Amendment 1
to Amendment 2, page 4, line 30, and indicated that she couldn't
locate the cited statute, AS 44.62.325.
REPRESENTATIVE KELLER mentioned that HB 229 would be referred to
the House Finance Committee if it moves out of the House State
Affairs Standing Committee.
REPRESENTATIVE VAZQUEZ claimed that although she likes the
intent of HB 229, the House State Affairs Standing Committee
shouldn't relegate their duties to another committee.
MR. POUND responded to Representative Vazquez's question by
saying that AS 44.62.325 is new language and is located on page
7 of Amendment 2 [Section 19, beginning on line 18].
8:52:51 AM
CHAIR LYNN stated that since there is a concern on the committee
regarding HB 229, he will hold the bill.
AMENDMENTS
The following amendments to HB 229 were either discussed or
adopted during the hearing. [Shorter amendments are provided in
the main text only.]
Amendment 1 to Amendment 2 [29-LS1104\A.5, Gardner, 3/16/16]
(adopted):
Page 1, line 1, following "legislature;":
Insert "providing for legislative review,
amendment, approval, disapproval, annulment, and delay
of proposed agency regulations;"
Page 1, lines 4 - 6:
Delete all material.
Page 1, line 7:
Delete "Sec. 2"
Insert "Section 1"
Renumber the following bill sections accordingly.
Page 2, lines 1 - 8:
Delete all material and insert:
"* Sec. 2. AS 24.05.182(a) is amended to read:
(a) A standing committee of the legislature
furnished notice of a proposed action under
AS 44.62.190 or 44.62.320(d) shall, consistent with
the committee's jurisdiction as provided in the
uniform rules of the legislature, review the proposed
regulation, amendment of a regulation, or repeal of a
regulation before the date the regulation is scheduled
by the department or agency to be adopted, amended, or
repealed.
* Sec. 3. AS 24.05.182(d) is amended to read:
(d) A standing committee that receives a copy of
a proposed regulation, amendment, or order of repeal
under AS 44.62.320(d) shall, within 35 days after
receipt of the proposed regulation, amendment, or
order of repeal, approve or disapprove the proposed
regulation, amendment, or order of repeal. If the
standing committee does not take action within 35 days
after receipt of the proposed regulation, amendment,
or order of repeal, the proposed regulation,
amendment, or order of repeal shall be considered
approved. If a standing committee determines that a
regulation, amendment to a regulation, or repeal of a
regulation does not properly implement legislative
intent and disapproves or returns the proposed
regulation, amendment, or order of repeal to the
department or agency, the standing committee's
findings shall, within 35 days after receipt of the
proposed regulation, amendment, or order of repeal, be
transmitted to the
(1) department or agency;
(2) regulations attorney at the Department
of Law; and
(3) senate secretary and the chief clerk of
the house of representatives [ADMINISTRATIVE
REGULATION REVIEW COMMITTEE].
* Sec. 4. AS 24.05.182 is amended by adding new
subsections to read:
(e) Except as provided in (h) of this section, a
proposed regulation, amendment, or order of repeal
that is disapproved under this section or that is
returned to the department or agency with a proposed
amendment shall be suspended until the adjournment of
the next regular legislative session following the
date of the committee's disapproval. The notice of
disapproval under this section expires upon
adjournment of the regular legislative session during
which the disapproval or amendment was made or, if the
legislature is not in regular session, the next
regular legislative session following the date of
disapproval, unless the legislature enacts a law that
annuls the proposed regulation or order of repeal.
(f) If the standing committee that is reviewing a
proposed regulation, amendment, or order of repeal
under this section disapproves the regulation,
amendment, or order of repeal or proposes an amendment
to the regulation, amendment, or order of repeal, the
department or agency that proposed the regulation,
amendment, or order of repeal may request leave of the
standing committee to withdraw or amend the proposed
regulation, amendment, or order of repeal.
(g) In determining whether to approve,
disapprove, or amend a proposed regulation, amendment,
or order of repeal under this section, the standing
committee shall consider
(1) whether the absence of a regulation
would significantly harm or endanger public health,
safety, or welfare;
(2) whether a less restrictive regulation
would address the regulatory concerns while adequately
protecting the public;
(3) whether the regulation would directly or
indirectly increase the cost of any goods or services;
(4) whether the increased cost of
implementing and enforcing the regulation would be
more detrimental than the purpose of the regulation;
(5) whether the regulation was designed
solely for the purpose of the protection of the public
and would have the primary effect of protecting the
public; and
(6) any other factors the committee
considers to be appropriate.
(h) A proposed regulation, amendment, or order
of repeal by the Regulatory Commission of Alaska, the
Board of Fisheries, the Board of Game, the Alaska Oil
and Gas Conservation Commission, the office of
victims' rights, or the office of the ombudsman, or an
emergency regulation adopted under AS 44.62.250, are
not subject to suspension under (e) of this section."
Renumber the following bill sections accordingly.
Page 3, lines 4 - 7:
Delete all material.
Renumber the following bill sections accordingly.
Page 3, line 24, through page 4, line 19:
Delete all material.
Renumber the following bill sections accordingly.
Page 5, following line 5:
Insert a new bill section to read:
"* Sec. 10. AS 44.62.180 is amended to read:
Sec. 44.62.180. Effective date. A regulation or
an order of repeal filed by the lieutenant governor
becomes effective on the 30th day after the date of
filing unless
(1) otherwise specifically provided by the
statute under which the regulation or order of repeal
is adopted, in which event it becomes effective on the
day prescribed by the statute;
(2) it is a regulation prescribing the
organization or procedure of an agency, in which event
it becomes effective upon filing by the lieutenant
governor or upon a later date specified by the state
agency in a written instrument submitted with, or as
part of, the regulation or order of repeal;
(3) it is an emergency regulation or order
of repeal adopted under AS 44.62.250, in which case
the finding and the statement of the facts
constituting the emergency shall be submitted to the
lieutenant governor, together with the emergency
regulation or order of repeal, which, in that event
only, becomes effective upon filing by the lieutenant
governor or upon a later date specified by the state
agency in a written instrument submitted with, or as
part of, the regulation or order of repeal;
(4) a later date is prescribed by the state
agency in a written instrument submitted with, or as
part of, the regulation or order of repeal;
(5) a proposed regulation, amendment, or
order of repeal has been suspended under AS 24.05.182,
in which case, if the proposed regulation, amendment,
or order of repeal takes effect, it takes effect on
the later of
(A) adoption by the agency of an amendment
proposed by a standing committee of the legislature;
or
(B) one day following adjournment of both
houses of the legislature as provided under
AS 44.62.325."
Renumber the following bill sections accordingly.
Page 5, line 31, following "legislators":
Insert "and to the presiding officer of each
house"
Page 6, line 4, through page 9, line 9:
Delete all material and insert:
"* Sec. 12. AS 44.62.190(b) is amended to read:
(b) If the form or manner of notice is prescribed
by statute, in addition to the requirements of filing
and furnishing notice under AS 44.62.010 - 44.62.300,
or in addition to the requirements of filing and
mailing notice under other sections of this chapter,
the notice shall be published, posted, mailed, filed,
or otherwise publicized as prescribed by the statute.
In the notice furnished to the legislature under
AS 44.62.190(a)(6), new language added to an existing
regulation shall be underlined, and language deleted
from an existing regulation shall be bracketed and
capitalized.
* Sec. 13. AS 44.62.195 is amended to read:
Sec. 44.62.195. Fiscal notes on regulations. If
the adoption, amendment, or repeal of a regulation has
an economic effect on a department, agency, or person,
the proposed regulation or order of repeal must
include a fiscal note prepared by the department or
agency in accordance with this section [WOULD REQUIRE
INCREASED APPROPRIATIONS BY THE STATE, THE DEPARTMENT
OR AGENCY AFFECTED SHALL PREPARE AN ESTIMATE OF THE
APPROPRIATION INCREASE FOR THE FISCAL YEAR FOLLOWING
ADOPTION, AMENDMENT, OR REPEAL OF THE REGULATION AND
FOR AT LEAST TWO SUCCEEDING FISCAL YEARS].
* Sec. 14. AS 44.62.195 is amended by adding a new
subsection to read:
(b) A fiscal note required under this section
must include, where applicable,
(1) a determination of the present need for
the regulation and the expected need for the
regulation;
(2) a determination of the costs and
benefits of the regulation and an explanation by the
department or agency of whether the proposed
regulation is the most cost-effective, efficient, and
feasible means of allocating public and private
resources to achieve the stated purpose;
(3) the effect of the regulation on market
competition;
(4) the effect of the regulation on the cost
of living, employment, and doing business in the
geographical regions where the regulation would have
the greatest effect;
(5) the source of revenue to implement and
enforce the regulation;
(6) a summary of the short-term and long-
term economic effects of the regulation, including an
analysis of the persons or groups that would bear the
costs of the regulation and the persons or groups that
would benefit directly or indirectly from the
regulation;
(7) the difficulties the department or
agency encountered, if any, in estimating the persons
or groups that would benefit from the regulation or
bear the costs of the regulation;
(8) the effect that adopting or failing to
adopt the regulation would have on the environment and
public health.
* Sec. 15. AS 44.62.245(c) is amended to read:
(c) The state agency shall also send the notice
described in (b)(2) of this section to
(1) a person who has placed the person's
name on a distribution list kept by the agency that
lists persons who want to receive the notice; the
agency may allow a person to request that distribution
of the notice be by electronic means and shall honor
that request if appropriate means are available;
(2) the regulations attorney in the
Department of Law; and
(3) the presiding officer of each house of
the legislature [THE MEMBERS OF THE ADMINISTRATIVE
REGULATION REVIEW COMMITTEE].
* Sec. 16. AS 44.62.320(b) is amended to read:
(b) At the same time a regulation is filed by the
lieutenant governor, the lieutenant governor shall
submit the regulation to the presiding officer of each
house of the legislature [CHAIRMAN AND ALL MEMBERS OF
THE ADMINISTRATIVE REGULATION REVIEW COMMITTEE FOR
REVIEW UNDER AS 24.20.400 - 24.20.460] together with
the fiscal information required to be prepared under
AS 44.62.195.
* Sec. 17. AS 44.62.320(c) is amended to read:
(c) At the same time as a regulation is submitted
to the governor under AS 44.62.040(c), the state
agency shall submit the regulation to the presiding
officer of each house of the legislature [CHAIR AND
ALL MEMBERS OF THE ADMINISTRATIVE REGULATION REVIEW
COMMITTEE FOR REVIEW UNDER AS 24.20.400 - 24.20.460]
together with the fiscal information required to be
prepared under AS 44.62.195.
* Sec. 18. AS 44.62.320(d) is amended to read:
(d) Within 10 days after receiving a regulation
under (b) or (c) of this section or under
AS 44.62.190(a)(6), the presiding officer of each
house of the legislature shall provide copies of the
regulation to the standing committee with jurisdiction
over the subject matter of the regulation as provided
in the uniform rules of the legislature for review
under AS 24.05.182 [, THE CHAIR OF THE ADMINISTRATIVE
REGULATION REVIEW COMMITTEE MAY SUBMIT TO THE
GOVERNOR, BY LEGISLATIVE MEMORANDUM OR LETTER,
COMMENTS ON THE REGULATION].
* Sec. 19. AS 44.62 is amended by adding a new
section to article 7 to read:
Sec. 44.62.325. Legislative annulment of
regulations. (a) The legislature may, in the regular
legislative session during which a disapproval or
amendment is made or, if the legislature is not in
regular session, the next regular session following
the disapproval or amendment of a proposed regulation,
amendment, or order of repeal by a standing committee
under AS 24.05.182, annul the proposed regulation,
amendment of the proposed regulation, or order of
repeal by law.
(b) If the legislature, following adjournment of
the regular legislative session during which a
disapproval or amendment is made or, if the
legislature is not in regular session, the next
regular session following disapproval or amendment of
a proposed regulation, amendment, or order of repeal
by a standing committee under AS 24.05.182, has not
enacted a law that annuls the proposed regulation,
amendment of the proposed regulation, or order of
repeal, the proposed regulation, amendment of the
proposed regulation, or order of repeal takes effect
one day after adjournment of both houses of the
legislature."
Renumber the following bill sections accordingly.
Page 9, line 13:
Delete "(AS 44.62.040 - 44.62.319) [AS 44.62.040
- 44.62.320]"
Insert "(AS 44.62.040 - 44.62.320)"
Page 9, line 20:
Delete "AS 24.05.182(b), 24.05.182(c),
24.05.182(d);"
Page 9, line 22:
Delete "AS 40.25.120(a)(11); and AS 44.62.320"
Insert "and AS 40.25.120(a)(11)"
[HB 229 was held over.]
| Document Name | Date/Time | Subjects |
|---|---|---|
| 1 HB259 ver A.pdf |
HSTA 3/17/2016 8:00:00 AM |
HB 259 |
| 2 HB259 Sponsor Statement.pdf |
HSTA 3/17/2016 8:00:00 AM |
HB 259 |
| 3 HB259 Fiscal Note-DOT-DES-1-19-16.pdf |
HSTA 3/17/2016 8:00:00 AM |
HB 259 |
| 01 HB 351 ver.W.pdf |
HSTA 3/17/2016 8:00:00 AM |
HB 351 |
| 02 HB 351 Sponsor Statement ver.W.pdf |
HSTA 3/17/2016 8:00:00 AM |
HB 351 |
| 03 HB 351 Sectional Analysis ver.W.pdf |
HSTA 3/17/2016 8:00:00 AM |
HB 351 |
| 04 HB 351 NFIB Support Letter.pdf |
HSTA 3/17/2016 8:00:00 AM |
HB 351 |
| 05 HB 351 Supporting Documents - Letter from the AK Chamber.pdf |
HSTA 3/17/2016 8:00:00 AM |
HB 351 |
| 06 CS HB 351 Summary of Changes Version E.pdf |
HSTA 3/17/2016 8:00:00 AM |
HB 351 |
| 07 CS HB 351 Ver E.pdf |
HSTA 3/17/2016 8:00:00 AM |
HB 351 |
| 08 CS HB 351 version E Sectional Analysis.pdf |
HSTA 3/17/2016 8:00:00 AM |
HB 351 |
| 10 Keller Amendment A.5 to A.4 CS HB 229 as of 3-16-2016.pdf |
HSTA 3/17/2016 8:00:00 AM |
HB 229 |