Legislature(1999 - 2000)

04/28/1999 01:20 PM House JUD

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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HJR 18 - CONST. AM:  ADMINISTRATIVE HEARINGS                                                                                    
                                                                                                                                
CHAIRMAN KOTT announced the first order of business is House Joint                                                              
Resolution 18, Proposing amendments to the Constitution of the                                                                  
State of Alaska relating to an office of administrative hearings.                                                               
                                                                                                                                
Number 0137                                                                                                                     
                                                                                                                                
REPRESENTATIVE MURKOWSKI said the subcommittee met and made some                                                                
changes to the resolution.  She indicated that Subsection C was                                                                 
added on page 1, beginning on line 14, and reads as follows:                                                                    
                                                                                                                                
     The legislature may exempt any agency of the State from                                                                    
     (a) of this section by law.                                                                                                
                                                                                                                                
REPRESENTATIVE MURKOWSKI further stated that this was added to                                                                  
address the concerns that were in the initial resolution where it                                                               
appeared that the legislature, in fact, did not have the authority                                                              
to decide who may or may not be in or out with regards to the full                                                              
centralized office of administrative hearings.  She said there had                                                              
been some discussion over language that would have specifically                                                                 
exempted boards and commissions.  She feels, as do those on the                                                                 
subcommittee, that this legislation is far from perfect, and that                                                               
it needs review during the interim.                                                                                             
                                                                                                                                
REPRESENTATIVE ROKEBERG stated that he is satisfied with the                                                                    
stipulation, regarding an agency and the ability to include or                                                                  
exclude, to include the boards and the commissions.  He believes                                                                
this will help the success of this resolution.                                                                                  
                                                                                                                                
REPRESENTATIVE CROFT asked, "What change does this make in our                                                                  
power to do anything in this area?"                                                                                             
                                                                                                                                
REPRESENTATIVE MURKOWSKI stated that she understood that the                                                                    
testimony indicates that the public needs to basically provide the                                                              
direction to the legislature that "you shall create an office of                                                                
administrative hearing that is your centralized office."  She said                                                              
if this is not put before the people then this legislature would                                                                
not do it.                                                                                                                      
                                                                                                                                
REPRESENTATIVE CROFT commented that it does not change the legal                                                                
authority in this area.                                                                                                         
                                                                                                                                
REPRESENTATIVE MURKOWSKI replied that she does not believe it                                                                   
changes the legal authority in this area.                                                                                       
                                                                                                                                
Number 0430                                                                                                                     
                                                                                                                                
REPRESENTATIVE JAMES stated that she was happy to see the inclusion                                                             
of Subsection C because she feels, without it, the issue is dead.                                                               
She said, "I think this is probably one of the best things that we                                                              
could do.  It couldn't have been done by statute, but we couldn't                                                               
pass it by statute.  We might have a little problem getting a                                                                   
constitutional amendment passed.  I'd be happy to talk to anybody                                                               
about this issue.  From a practical standpoint, I know that what                                                                
happens with us when we have a system, and you get used to the                                                                  
system, we don't want change, and we think that what we're doing                                                                
works perfectly fine.  We can find all kinds of excuses, from the                                                               
fact that no one else would know how to do this.  No one else would                                                             
have the expertise.  All of those kinds of excuses are not valid                                                                
excuses.  It's to say that, 'I'm the only one that smart, and no                                                                
one else is smart, so no one else can do this besides me.'  So, I                                                               
think ... in the regulation process, where the regulations are                                                                  
written by the agency, they are enforced by the agency, and, if you                                                             
want to appeal any of those actions, you appeal to the same agency.                                                             
That is not democracy.  So, I think this is a really good plan to                                                               
have innocent, third-party decision-makers in the appeal process."                                                              
                                                                                                                                
Number 0584                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG stated that he would also prefer to have                                                                
this done by statute.  He said, "But that would require that the                                                                
administration would cooperate (indisc.)."                                                                                      
                                                                                                                                
REPRESENTATIVE CROFT said no and stated, "We have a veto-proof                                                                  
majority.  We can do it anytime we want."                                                                                       
                                                                                                                                
REPRESENTATIVE ROKEBERG indicated that it is his preference that                                                                
the administration and legislature work jointly on this.  He thinks                                                             
it is an excellent model for reducing costs and providing better                                                                
service to the people of Alaska.  He made a motion to adopt  the                                                                
proposed committee substitute [Version I, Cook, 4/27/99].  There                                                                
being no objection, it was so ordered.                                                                                          
                                                                                                                                
REPRESENTATIVE ROKEBERG made a motion to move Version I, with                                                                   
individual recommendations and zero fiscal notes, out of the                                                                    
committee.                                                                                                                      
                                                                                                                                
CHAIRMAN KOTT objected, noting that they did not have the votes.                                                                
He asked Representative Rokeberg to withdraw his motion.                                                                        
                                                                                                                                
Number 0666                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG withdrew his motion.                                                                                    
                                                                                                                                
CHAIRMAN KOTT asked Representative Murkowski to comment on her                                                                  
concerns regarding the resolution.                                                                                              
                                                                                                                                
Number 0685                                                                                                                     
                                                                                                                                
REPRESENTATIVE MURKOWSKI stated that it is her understanding that                                                               
the attempt the sponsor made, in terms of getting the resolution                                                                
through statutorily, was rather tortuous, and ended up with a                                                                   
product that was not feasible.  She noted that there was some                                                                   
concern expressed that it cannot be done statutorily because there                                                              
was  some opposition from those within the department and the                                                                   
administration.  Her indication is that the administration                                                                      
recognize the benefits and merits of pursuing this and are willing                                                              
to work with the sponsor and subcommittee to make it happen.  She                                                               
said, "Because it is such a major step, though, in terms of how we                                                              
handle our administrative hearings, it wasn't something that my                                                                 
subcommittee is able to do at this point in time.  I don't think,                                                               
though, that that same resistance, if you will, or perceived                                                                    
resistance is there now.  I think that there is a recognition that                                                              
perhaps the system does not work as it should. ... I think that it                                                              
deserves more scrutiny and more work."                                                                                          
                                                                                                                                
REPRESENTATIVE JAMES stated that she appreciates what                                                                           
Representative Murkowski said.  She believes that if the                                                                        
administration cooperated, there is no reason that this could not                                                               
be done by statute.  She indicated that she is encouraged by the                                                                
tone reported from the administration by Representative Murkowski.                                                              
She thinks that maybe having a constitutional amendment has made                                                                
them look a little harder, or maybe they have been persuaded in                                                                 
some other way.                                                                                                                 
                                                                                                                                
Number 0876                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT noted that from his discussion with the                                                                           
administration it was suggested that they were more than willing to                                                             
sit down and craft some legislation that would attempt to satisfy                                                               
the intent of the resolution.  He is concerned about "entrenching                                                               
our Constitution."  He stated that a statute would have to be                                                                   
passed to make this work, and he does not think putting the cart                                                                
before the horse is the way to go.  It is his intent to hold the                                                                
resolution in the committee and work on the resolution during the                                                               
interim.  He commented that it is not the intent to let the                                                                     
resolution sit in committee without subsequent legislation going                                                                
forward.                                                                                                                        
                                                                                                                                
REPRESENTATIVE JAMES stated that she would be willing to offer her                                                              
expertise on this issue.                                                                                                        
                                                                                                                                
CHAIRMAN KOTT indicated that he does not want anyone in the                                                                     
administration to think that the resolution is "D.O.A" [dead on                                                                 
arrival] to this committee.  He stated that he would like to have                                                               
one shot to work on the resolution in order to give it a legitimate                                                             
chance to pass.                                                                                                                 
                                                                                                                                
REPRESENTATIVE CROFT said, "I was here when the statutory version                                                               
by the same sponsor as this resolution came before us.  And, I                                                                  
mean, it was this committee, in its prior form, saw enough problems                                                             
with it that we didn't think it should go forward.  It has serious                                                              
flaws that the sponsor never rectified, never corrected.  I've                                                                  
before had the experience of driving down the road and rolling down                                                             
the window and telling somebody they've got a flat tire and having                                                              
them be pissed off at me.  I mean, the administration just pointed                                                              
out the problems that were in the bill, and that's their job.  It                                                               
is not the administration that killed this bill, the Judiciary                                                                  
Committee killed this bill because it had-last year's                                                                           
bill-[be]cause it had serious flaws that were never corrected, and                                                              
this year I think the Judiciary Committee has appropriate concerns                                                              
about this all-or-nothing approach. ... There's never been a                                                                    
governor's veto of a statute, it's never gotten that far [be]cause                                                              
it's never been put in any kind of form that approached reasonable.                                                             
It is an extremely time-consuming process to do this right, to try                                                              
and do it in a blanket approach.  You end up with huge, unintended                                                              
consequences; some of which are obvious, some which take a long                                                                 
time to figure out. ... We may end up, after doing this all                                                                     
session, or all interim, with the conclusion that there isn't any                                                               
significant savings to be had [be]cause the numbers of places that                                                              
we do this are so small that you're accumulating small. ... Putting                                                             
in our constitution, a directive to do what we have the power to do                                                             
now, but allowing us to not do it if we decide not to, is simply,                                                               
in my mind, ridiculous."                                                                                                        
                                                                                                                                
Number 1271                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT stated that maybe no savings will be found.                                                                       
                                                                                                                                
REPRESENTATIVE MURKOWSKI said she was glad that the committee is                                                                
willing to undertake this throughout the interim and look at just                                                               
those issues.  She stated that the items Representative Croft                                                                   
mentioned are exactly accurate.  It is her opinion that there are                                                               
very serious and substantial flaws with the resolution.  She hopes                                                              
the committee considers the concept during the interim, not whether                                                             
or not there is a joint resolution coming forward.  She appreciates                                                             
that Representative Ogan has kept the issue in the forefront.                                                                   
                                                                                                                                
CHAIRMAN KOTT added that he also applauds Representative Ogan's                                                                 
attempt.  He believes it is a great concept that needs to be                                                                    
furthered.                                                                                                                      
                                                                                                                                
REPRESENTATIVE JAMES agrees that this is the way to go.  She feels,                                                             
without cooperation and help from the administration, that changes                                                              
cannot be made.  She would also like to fit dispute resolution into                                                             
the process in order to have it as the first opportunity, and, if                                                               
that does not resolve anything, then have it go on to a hearing                                                                 
officer.  She stated that her goal is to create a better                                                                        
relationship between the agencies and the public, and what the                                                                  
public does.                                                                                                                    
                                                                                                                                
CHAIRMAN KOTT stated that it would be taken into consideration.                                                                 
                                                                                                                                
Number 1481                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG stated that he does not entirely agree with                                                             
the diagnoses of the "death" of this resolution last year.  He                                                                  
believes from discussions with the sponsor that it was as much the                                                              
administration's reluctance to further work on the issue as much as                                                             
anything else.                                                                                                                  
                                                                                                                                
REPRESENTATIVE CROFT said, "The administration has no seat on this                                                              
committee.  I mean, the committee decided from the (indisc.), and                                                               
I asked the sponsor then and I'll ask him again this, 'What                                                                     
questions hasn't the administration, ... or whoever, answered on                                                                
behalf?'  Last year when I asked him that, it was,  'None, but we                                                               
just don't think they like it.'  Of course they didn't like it.  We                                                             
didn't like it.  It didn't work, but that's not their fault.  I                                                                 
guess he wanted them to rewrite the bill, ... They didn't do that,                                                              
but they did say, I mean, clearly on the record, where the problems                                                             
areas were, and what to do with it. ... I will ask again,  'What                                                                
questions haven't been answered?'  I think they have been, and I                                                                
think it's just, it's a very difficult, time-consuming area to do                                                               
right, and it has not been done right to date."                                                                                 
                                                                                                                                
Number 1562                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT said if the resolution had ended up in the House                                                                  
Judiciary Standing Committee they could have moved it out if the                                                                
votes were there.  He is not sure about the details, but it is                                                                  
obvious to him that there must have been a problem or some concerns                                                             
by some of the committee members.                                                                                               
                                                                                                                                
REPRESENTATIVE JAMES stated that the best way to provide a working                                                              
piece of legislation is for "us to sit on the committee, and have                                                               
the administration out there, and we have this interchange."  She                                                               
indicated that this did not happen last year, and that this year                                                                
the administration was not interested in having anything move                                                                   
forward.  She feels that if there is a change of heart now, she is                                                              
excited.                                                                                                                        
                                                                                                                                
CHAIRMAN KOTT indicated that the bill would be held over for                                                                    
further consideration.                                                                                                          

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