Legislature(2003 - 2004)
03/03/2004 09:15 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
CS FOR SENATE BILL NO. 203(JUD)
"An Act relating to administrative hearings, to hearing
officers, and to administrative law judges; establishing the
office of administrative hearings and relating to that office;
and providing for an effective date."
This was the third hearing for this bill in the Senate Finance
Committee.
Co-Chair Wilken stated that this legislation would create an
independent administrative hearing office within the Department of
Administration, which would be supervised by a Chief Administrative
Law Judge. Testimony would address Committee questions pertaining
to whether the University of Alaska would be included in this
legislation as well addressing the cost of producing and adopting
of regulations. Members' packets also contain a letter in support
of this legislation from the National Federation of Independent
Businesses (NFIB) dated March 1, 2004 [copy on file]. In addition,
discussion would be presented regarding the bill's fiscal notes.
DAVE STANCLIFF, Regulatory Review Committee, Office of the Senate
President Senator Gene Therriault, Judiciary Committee noted that,
as reflected in the memorandum [copy on file] dated February 27,
2004 to Senate President, Senator Gene Therriault, from Tam Cook,
Director, Division of Legal and Research Services, there is no
Constitutional conflict in regards to applying the standards
imposed by this legislation to both State and University of Alaska
hearing officers. However, by desire and by an exemption provided
in the State's procurement code, the University of Alaska is exempt
from the jurisdiction of the proposed central panel. He also noted
that certain State entities' jurisdictional issues are continuing
negotiations with the bill's sponsor and the Governor Frank
Murkowski Administration. The recommendation in regard to these
negotiations is that they be further addressed by the House of
Representatives Judiciary Committee, as the bill progresses.
ANDY HEMENWAY, Hearing Officer, Procurement & Longevity Bonus,
Department of Administration, communicated that efforts are being
undertaken by the sponsor to address jurisdictional issues that
have been presented by the Division of Insurance and the Department
of Revenue.
Mr. Stancliff also noted, in response to Senator Hoffman's concern
regarding a possible conflict of interest that might arise were a
full-time hearing officer to also practice law as a private
citizen, that a law book titled "Judicial Canon" [copy not
provided] would be distributed that would properly define how these
types of issues should be addressed. He noted that this book is the
national model in regards to the conduct of administrative hearing
officers, and, as specified in the legislation, this is the law
reference that must be adopted by the Chief Administrative Law
Judge. He acknowledged that the sponsor "is very much aware" of
this concern.
Senator Dyson asked for an overview of "the criticisms or any
opposition" to the bill.
Mr. Stancliff responded that there has been broad based support and
input from members of every committee that has conducted a hearing
on this bill. There is no sense of partisanship. A conflict arises
regarding how to incorporate the mechanics of this new model and
its jurisdiction with the existing process and the transition to
the new model. This transition process is the concern that has made
some employees and divisions "nervous." At this point, the tensions
have been 98-percent alleviated.
Co-Chair Wilken noted that 15 fiscal notes accompany this
legislation.
ERIC SWANSON, Administrative Services Director, Department of
Administration, summarized the Department's fiscal notes regarding
the incorporation of the new centralized office of administrative
hearings into the Department: ten positions would be transferred to
the Department and $500,000 would be required to establish the new
office during the first year with some of the funding being
transferred from other agencies as interagency funding. However, he
noted that some agencies funding sources are not transferable.
$50,000 of new general fund funding would be required the first
year to fund the new Chief Administrative Law Judge (CALJ)
position. He noted that, other than the CALJ, the majority of the
hearing officer positions would not be transferred to the office
until on or after January first 2005.
Co-Chair Wilken asked regarding the net total expected expenses.
Mr. Swanson responded that the net total increase would be $52,000
in the first year. In addition, the Division of Insurance would
experience an increase in receipt supported service expenses.
Therefore the net total increase would amount to approximately
$80,000 the first year. There would be a reduction in expenses as
other funding sources transfer over in January 2005.
Co-Chair Green moved to report the committee substitute from
Committee with individual recommendations and accompanying fiscal
notes.
There being no objection, CS SB 203 (FIN) was REPORTED from
Committee with $500,600 fiscal note #6, dated March 2, 2004, from
the Department of Administration; negative $113,600 fiscal note #7,
dated March 2, 2004, from the Department of Administration; zero
fiscal note #8, dated February 27, 2004, from the Department of
Labor and Workforce Development; negative $5,000 fiscal note #9,
dated February 27, 2004, from the Department of Public Safety; zero
fiscal note #10, dated February 25, 2004, from the Department of
Health and Social Services; negative $22,500 fiscal note #11, dated
February 27, 2004, from the Office of the Governor; indeterminate
fiscal note #12, dated February 27, 2004, from the Department of
Community and Economic Development; zero fiscal note #13, dated
March 1, 2004, from the Department of Education and Early
Development; zero fiscal note #14, dated February 24, 2004, from
the Department of Environmental Conservation; $38,300 fiscal note
#15, dated March 1, 2004, 7from the Department of Community and
Economic Development; zero fiscal note #16, dated February 27,
2004, from the Department of Community and Economic Development;
indeterminate fiscal note #17, dated February 12, 2004, from the
Department of Law; indeterminate fiscal note #18, dated March 1,
2004, from the Department of Education and Early Development;
negative $203,600 fiscal note #19, dated March 2, 2004, from the
Department of Revenue; and negative $52,400 fiscal note #20, dated
March 2, 2004 from the Department of Revenue.
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