04/23/2024 03:00 PM House STATE AFFAIRS

            HB 278-ADMIN. REGULATION REVIEW DIVISION                                                                        
                                                                                                                                
4:29:11 PM                                                                                                                    
                                                                                                                                
CHAIR SHAW  announced that  the next order  of business  would be                                                               
HOUSE  BILL  NO. 278,  "An  Act  establishing the  administrative                                                               
regulation review division."                                                                                                    
                                                                                                                                
4:29:58 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CARPENTER presented  HB 278 on behalf  of the bill                                                               
sponsor, the House Special Committee  on Ways and Means, on which                                                               
Representative  Carpenter serves  as chair.   He  paraphrased the                                                               
sponsor statement [included in the  committee packet], which read                                                               
as follows [original punctuation provided]:                                                                                     
                                                                                                                                
     According to the Bureau  of Economic Analysis, Alaska's                                                                    
     economic  growth is  the  worst in  the  nation. It  is                                                                    
     imperative that  we grow the  private economy.  One way                                                                    
     to do this is by  decreasing the high regulatory burden                                                                    
     Alaskan's have when doing business.                                                                                        
                                                                                                                                
     In  current law,  AS  44.62 (Administrative  Procedures                                                                    
     Act) allows  for the Governor or  Lieutenant Governor's                                                                    
     review of  regulations, requires the Department  of Law                                                                    
     to advise agencies on  regulations, and requires public                                                                    
     notice  and  public  comment.   There  is  no  specific                                                                    
     requirement   for   Legislative  review   of   proposed                                                                    
     regulations, nor  any action  that the  Legislature can                                                                    
     take on  them. Also  included in As.  44.62, government                                                                    
     corporations   are  exempt   from  the   Administrative                                                                    
     Procedures Act.                                                                                                            
                                                                                                                                
     HB  278 would  establish  an Administrative  Regulation                                                                    
     Review   Division,   a   vital  mechanism   to   ensure                                                                    
     transparency,  accountability,  and efficiency  in  the                                                                    
     regulatory process within the  State of Alaska. It also                                                                    
     Removes  the Government  corporations' exemptions  from                                                                    
     regulatory review from law.                                                                                                
                                                                                                                                
     The  Administrative  Regulation  Review  Division  will                                                                    
     serve as  a permanent staff agency  under the oversight                                                                    
     of  the Legislative  Budget  and  Audit Committee.  Its                                                                    
     primary function is  to facilitate thorough legislative                                                                    
     review  of  administrative  regulations  filed  by  the                                                                    
     Lieutenant  Governor.  This  will be  achieved  through                                                                    
     comprehensive   assessment  of   proposed  regulations,                                                                    
     ensuring alignment  with legislative  intent, statutory                                                                    
     authority, and consistency with applicable laws.                                                                           
                                                                                                                                
     The administrative  regulation review division  will be                                                                    
     tasked with several  key responsibilities: 1. Reviewing                                                                    
     all administrative regulations  to ensure they properly                                                                    
     implement  legislative  intent. 2.  Providing  comments                                                                    
     and recommendations to the  governor and state agencies                                                                    
     on  proposed  regulations.  3.  Investigating  findings                                                                    
     transmited [sic] by  standing commitees [sic] regarding                                                                    
     regulations  inconsistent with  legislative intent.  4.                                                                    
     Promoting needed  amendments or repeals  of regulations                                                                    
     deemed  inappropriate  or   outdated.  5.  Recommending                                                                    
     legislative  action to  annul regulations  found to  be                                                                    
     inconsistent with legislative intent.                                                                                      
                                                                                                                                
     Furthermore, the  Division will  have the  authority to                                                                    
     examine   all  administrative   regulations,  including                                                                    
     proposed  adoptions, amendments,  or orders  of repeal.                                                                    
     It will  provide expert commentary  and recommendations                                                                    
     to   the  governor   and   state  agencies,   promoting                                                                    
     necessary  amendments   or  repeals   when  regulations                                                                    
     deviate  from  legislative  intent   or  fail  to  meet                                                                    
     statutory standards.                                                                                                       
                                                                                                                                
     HB 278 aims to  simplify regulatory compliance process,                                                                    
     ensure regulatory  compliance with  legislative intent,                                                                    
     and provide  a mechanism for continuous  improvement in                                                                    
     our regulatory  framework. This will  in turn  create a                                                                    
     better business environment for our State.                                                                                 
                                                                                                                                
4:34:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CARRICK asked  about the  perspective surrounding                                                               
the fiscal note for HB 278.                                                                                                     
                                                                                                                                
REPRESENTATIVE CARPENTER  replied that the analysis  did not take                                                               
into consideration  the cost  savings of  regulatory review.   He                                                               
said the review is not  happening now; therefore, it is difficult                                                               
to judge what the cost savings  would be.  Speaking to the fiscal                                                               
note and its continuity would require permanent staff, he said.                                                                 
                                                                                                                                
4:37:58 PM                                                                                                                    
                                                                                                                                
DONNA ARDUIN,  Staff, Representative Ben Carpenter,  Alaska State                                                               
Legislature, answered questioned during the  hearing on HB 278 on                                                               
behalf of  the sponsor, the  House Special Committee on  Ways and                                                               
Means, on  which Representative Carpenter  serves as chair.   She                                                               
explained that  regulations are a  delegation of law  making, and                                                               
more  money  is  spent  making   laws  than  delegating  them  to                                                               
departments.  She said  that Representative Carpenter recommended                                                               
that the  legislative branch should  further review laws  made by                                                               
the executive branch.                                                                                                           
                                                                                                                                
REPRESENTATIVE   CARRICK   expressed    curiosity   as   to   why                                                               
constituents  were  being  excluded from  this  legislation,  and                                                               
whether there was  a sense of what it would  cost to provide some                                                               
additional review and oversite of state corporations.                                                                           
                                                                                                                                
REPRESENTATIVE  CARPENTER confirmed  that the  bill would  remove                                                               
the exclusion.                                                                                                                  
                                                                                                                                
4:39:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STORY  questioned whether consideration  was given                                                               
to look at areas where the regulatory burden was high.                                                                          
                                                                                                                                
REPRESENTATIVE  CARPENTER replied  yes, there  was consideration,                                                               
but  the  next  budget  and  audit chair  may  have  a  different                                                               
approach over time.                                                                                                             
                                                                                                                                
REPRESENTATIVE STORY noticed two  different fiscal notes with the                                                               
bill, and she  observed that the governor's fiscal  note was zero                                                               
cost.  She asked what the governor's staff would be doing.                                                                      
                                                                                                                                
REPRESENTATIVE CARPENTER  asked for clarification that  they were                                                               
referring to the same control code on the bottom right page.                                                                    
                                                                                                                                
REPRESENTATIVE  STORY   clarified  she   was  referring   to  the                                                               
"statement  of zero  fiscal impact"  that was  behind the  fiscal                                                               
note.                                                                                                                           
                                                                                                                                
REPRESENTATIVE  CARPENTER   answered  that  the   division  being                                                               
created was not being created in  the executive branch but in the                                                               
legislative  branch;  therefore,  there  would not  be  a  fiscal                                                               
impact.                                                                                                                         
                                                                                                                                
4:43:37 PM                                                                                                                    
                                                                                                                                
CHAIR SHAW announced that HB 278 was held over.