Legislature(2005 - 2006)CAPITOL 120

04/07/2005 03:00 PM JUDICIARY


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
<Meeting continued from Wed 4/6/05>
+= HB 33 EFFECT OF REGULATIONS ON SMALL BUSINESSES TELECONFERENCED
Moved CSHB 33(JUD) Out of Committee
+= HB 94 ELECTIONS TELECONFERENCED
Moved CSHB 94(JUD) Out of Committee
Bills Previously Heard/Scheduled
HB 33 - EFFECT OF REGULATIONS ON SMALL BUSINESSES                                                                             
                                                                                                                                
CHAIR McGUIRE  announced that the  first order of  business would                                                               
be  HOUSE  BILL  NO.  33  "An  Act  relating  to  the  effect  of                                                               
regulations on  small businesses; and providing  for an effective                                                               
date."  [Before the committee was CSHB 33(L&C).]                                                                                
                                                                                                                                
[Because of  its length, Amendment  1 is  included at the  end of                                                               
the minutes  for HB 33.   The shorter amendments are  included in                                                               
the main text.]                                                                                                                 
                                                                                                                                
3:09:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KEVIN MEYER,  Alaska State  Legislature, sponsor,                                                               
said he has  seen the proposed amendments to HB  33, and they are                                                               
acceptable to him.                                                                                                              
                                                                                                                                
CHAIR McGUIRE referred  to Amendment 1 [text provided  at the end                                                               
of the minutes for HB 33].                                                                                                      
                                                                                                                                
MICHAEL  PAWLOWSKI, Staff  to Representative  Kevin Meyer,  House                                                               
Finance  Committee, Alaska  State Legislature,  sponsor, said  he                                                               
worked with  the Department  of Law to  develop Amendment  1, and                                                               
relayed  that  the  intent  is to  remove  the  natural  resource                                                               
agencies from the requirements of HB 33.                                                                                        
                                                                                                                                
CHRISTOPHER   KENNEDY,   Senior   Assistant   Attorney   General,                                                               
Environmental Section, Civil  Division (Anchorage), Department of                                                               
Law  (DOL),  relayed  that  most   of  the  changes  offered  via                                                               
Amendment  1  involve changing  "an  agency"  into "a  designated                                                               
state agency", and this is  because the administration decided to                                                               
go with a  short list of agencies that would  be covered under HB
33.  Those agencies are  the Department of Commerce, Community, &                                                               
Economic  Development (DCCED);  the  Department of  Environmental                                                               
Conservation (DEC); the Department  of Health and Social Services                                                               
(DHSS);  and the  Department of  Labor and  Workforce Development                                                               
(DLWD).    He  said  there  are still  a  few  other  exceptions,                                                               
including the  regulations from the  DEC that relate  to resource                                                               
development.   Environmental  health,  like the  food code,  will                                                               
still be included, he stated.                                                                                                   
                                                                                                                                
MR. KENNEDY said there are  also other exclusions, like the Local                                                               
Boundary Commission  and the Alaska  Energy Authority.   He added                                                               
that the economic  impact analysis will not be  required when the                                                               
change  in regulations  is required  by  federal law.   The  bill                                                               
previously  provided   that  when   an  agency  proposes   a  new                                                               
regulation,  the agency  would conduct  a regulatory  flexibility                                                               
analysis and create an economic  effect statement and then notify                                                               
the  DCCED.   He said  this was  confusing because  the order  of                                                               
events would happen  differently - the agency  would first notify                                                               
the DCCED and [then] get comments.                                                                                              
                                                                                                                                
3:17:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  COGHILL  opined  that  some of  the  language  in                                                               
Amendment 1 doesn't make sense, specifically that which says:                                                                   
                                                                                                                                
          Following "shall":                                                                                                    
          Insert the following new material:                                                                                    
               "(1)  notify the department that the                                                                             
     designated state agency intends to adopt the proposed                                                                      
    regulation   or   has   received   a   petition   under                                                                     
     AS 44.62.220 to adopt the proposed regulation;                                                                             
               (2)"                                                                                                             
                                                                                                                                
MR.  PAWLOWSKI said  the intent  is to  put numbers  next to  the                                                               
activities that  are described; thus,  proposed paragraph  (1) of                                                               
subsection  (a) requires  the designated  state agency  to notify                                                               
the department that the designated  state agency intends to adopt                                                               
the  proposed regulations  or has  received a  petition under  AS                                                               
44.62.220.  Proposed  paragraph (2) of subsection  (a) would then                                                               
require  the  designated  state agency  to  prepare  an  economic                                                               
effect statement.                                                                                                               
                                                                                                                                
3:21:09 PM                                                                                                                    
                                                                                                                                
CHAIR  McGUIRE made  a motion  to  adopt Amendment  1 [full  text                                                               
provided at the end of the minutes for HB 33].                                                                                  
                                                                                                                                
REPRESENTATIVE GRUENBERG objected.                                                                                              
                                                                                                                                
The committee took an at-ease from 3:21 p.m. to 3:22 p.m.                                                                       
                                                                                                                                
REPRESENTATIVE  GRUENBERG  noted   that  Amendment  1  eliminates                                                               
village  corporations from  the definition  of "small  business,"                                                               
and said he would be in favor leaving that language in.                                                                         
                                                                                                                                
MR.  KENNEDY said  some village  corporations  are equivalent  to                                                               
small businesses and some are quite large.                                                                                      
                                                                                                                                
3:23:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG acknowledged that  point, but noted that                                                               
the  vast majority  are  small.   "So why  don't  we say  village                                                               
corporations under a certain size," he asked.                                                                                   
                                                                                                                                
MR.   PAWLOWSKI  offered   his  understanding   that  a   village                                                               
corporation  with fewer  than 100  employees would  still qualify                                                               
under the definition used in the bill.                                                                                          
                                                                                                                                
REPRESENTATIVE GRUENBERG  surmised that  in some cases,  they are                                                               
similar  to  municipalities and  might  not  qualify as  business                                                               
entities.                                                                                                                       
                                                                                                                                
MR.  KENNEDY said  Representative  Gruenberg is  correct in  that                                                               
some village corporations are nonprofit  entities and so wouldn't                                                               
be  considered  business  entities;   he  noted  that  all  other                                                               
nonprofit  entities  are potentially  outside  the  scope of  the                                                               
bill.                                                                                                                           
                                                                                                                                
REPRESENTATIVE  GRUENBERG  suggested amending  subparagraph  (A),                                                               
located on  page 4  of proposed AS  44.62.218(h)(5), such  that a                                                               
small  business entity  would include  village corporations  with                                                               
fewer than 100 employees.                                                                                                       
                                                                                                                                
CHAIR McGUIRE  indicated a preference  for placing  such language                                                               
under subparagraph (B) of proposed AS 44.62.218(h)(5).                                                                          
                                                                                                                                
REPRESENTATIVE GRUENBERG removed his objection to Amendment 1.                                                                  
                                                                                                                                
CHAIR McGUIRE asked whether there  were any further objections to                                                               
Amendment 1.  There being none, Amendment 1 was adopted.                                                                        
                                                                                                                                
REPRESENTATIVE GRUENBERG made  a motion to adopt  Amendment 2, to                                                               
delete  from Amendment  1 the  language, "Page  4, lines  8 -  9:                                                               
Delete  all material.   Page  4, line  10:   Delete '(C)'  Insert                                                               
'(B)'", and  to insert  on page  4, line 8,  after the  phrase "a                                                               
village  corporation"   and  before  the  semicolon,   the  words                                                               
"employing fewer than 100 employees".   There being no objection,                                                               
Amendment 2 was adopted.                                                                                                        
                                                                                                                                
3:28:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  COGHILL said  he wants  to see  the federal  code                                                               
that is being incorporated into the proposed statute.                                                                           
                                                                                                                                
REPRESENTATIVE MEYER agreed to provide it.                                                                                      
                                                                                                                                
3:29:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARA  made a  motion to  adopt Amendment  3, which                                                               
read [original punctuation provided]:                                                                                           
                                                                                                                                
     To page 2 line 3                                                                                                           
     delete "and an estimate of the number"                                                                                     
                                                                                                                                
CHAIR McGUIRE objected for the purpose of discussion.                                                                           
                                                                                                                                
REPRESENTATIVE GARA said Amendment  3 simplifies the state agency                                                               
study  by  not  requiring  an  agency  to  count  the  number  of                                                               
businesses that will be affected by a regulation.                                                                               
                                                                                                                                
CHAIR  McGUIRE removed  her objection,  and  asked whether  there                                                               
were any further  objections.  There being none,  Amendment 3 was                                                               
adopted.                                                                                                                        
                                                                                                                                
REPRESENTATIVE GARA  made a  motion to  adopt Amendment  4, which                                                               
read [original punctuation provided]:                                                                                           
                                                                                                                                
     To page 2 line 18                                                                                                          
     delete "while accomplishing"                                                                                               
     insert "without compromising"                                                                                              
                                                                                                                                
CHAIR McGUIRE objected [for the purpose of discussion].                                                                         
                                                                                                                                
REPRESENTATIVE  GARA said  Amendment 4  makes it  clear that  the                                                               
intent is to fully enforce the statute.                                                                                         
                                                                                                                                
REPRESENTATIVE MEYER said Amendment 4 was fine with him.                                                                        
                                                                                                                                
CHAIR  McGUIRE removed  her objection,  and  asked whether  there                                                               
were any further  objections.  There being none,  Amendment 4 was                                                               
adopted.                                                                                                                        
                                                                                                                                
3:31:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GARA moved  to report  CSHB 33(L&C),  as amended,                                                               
out  of   committee  with  individual  recommendations   and  the                                                               
accompanying  fiscal  notes.   There  being  no  objection,  CSHB
33(JUD)   was  reported   from  the   House  Judiciary   Standing                                                               
Committee.                                                                                                                      
                                                                                                                                
                          AMENDMENT(S)                                                                                        
                                                                                                                                
The following  amendment to CSHB  33(L&C) was adopted  during the                                                               
hearing.    [The shorter  amendments  are  provided in  the  main                                                               
text.]                                                                                                                          
                                                                                                                                
Amendment 1 [original punctuation provided]:                                                                                  
                                                                                                                                
     Page 1, line 5:                                                                                                            
          Delete "an"                                                                                                           
          Insert "a designated state"                                                                                           
                                                                                                                                
     Page 1, line 7:                                                                                                            
          Delete "an"                                                                                                           
          Insert "a designated state"                                                                                           
                                                                                                                                
     Page 1, line 8:                                                                                                            
          Following "businesses, the":                                                                                          
               Insert "designated state"                                                                                        
                                                                                                                                
          Following "shall":                                                                                                    
          Insert the following new material:                                                                                    
               "(1)  notify the department that the                                                                             
     designated state agency intends to adopt the proposed                                                                      
    regulation   or   has   received   a   petition   under                                                                     
     AS 44.62.220 to adopt the proposed regulation;                                                                             
               (2)"                                                                                                             
                                                                                                                                
     Page 1, line 9, following "section":                                                                                       
          Delete ","                                                                                                            
          Insert "; and                                                                                                         
               (3)"                                                                                                             
                                                                                                                                
     Page 1, line 10, following "section":                                                                                      
          Delete ", and notify the department that the                                                                          
     agency intends to"                                                                                                         
          Insert "."                                                                                                            
                                                                                                                                
     Page 1, lines 11 - 12:                                                                                                     
          Delete all material.                                                                                                  
                                                                                                                                
     Page 1, line 13:                                                                                                           
          Delete "An"                                                                                                           
          Insert "A designated state"                                                                                           
                                                                                                                                
     Page 2, line 1, following "of the":                                                                                        
          Insert "designated state"                                                                                             
                                                                                                                                
     Page 2, line 15:                                                                                                           
          Delete "an"                                                                                                           
          Insert "a designated state"                                                                                           
                                                                                                                                
     Page 2, line 23, following "the":                                                                                          
          Insert "designated state"                                                                                             
                                                                                                                                
     Page 3, line 3:                                                                                                            
          Delete "agencies"                                                                                                     
          Insert "a designated state agency"                                                                                    
                                                                                                                                
     Page 3, line 5, following "regulations":                                                                                   
          Delete "of"                                                                                                           
                                                                                                                                
     Page 3, line 6, following "(1)":                                                                                           
          Insert "of"                                                                                                           
                                                                                                                                
     Page 3, lines 8-17:                                                                                                        
          Delete all material and insert:                                                                                       
             "(2)  of the Alaska Energy Authority;                                                                              
               (3)  of the Department of Environmental                                                                          
      Conservation that are adopted under the authority of                                                                      
         AS 46.03.050 - 46.03.900, AS 46.04, AS 46.08 -                                                                         
     AS 46.14, AS 46.35, or AS 46.45;                                                                                           
               (4)  of the Local Boundary Commission; or                                                                        
               (5)  mandated by federal law as a condition                                                                      
        for participating in or implementing a federally                                                                        
      subsidized or assisted program, or for obtaining or                                                                       
     maintaining state primacy in a federal program."                                                                           
                                                                                                                                
     Page 3, line 18:                                                                                                           
          Delete "an"                                                                                                           
          Insert "a designated state"                                                                                           
                                                                                                                                
     Page 3, following line 25:                                                                                                 
          Insert the following new material:                                                                                    
               "(2)  designated state agency" means the                                                                         
               (A)  Department of Commerce, Community, and                                                                      
     Economic Development;                                                                                                      
               (B)         Department    of    Environmental                                                                    
     Conservation;                                                                                                              
               (C)  Department of Health and Social                                                                             
     Services; and                                                                                                              
               (D)  Department of Labor and Workforce                                                                           
     Development;"                                                                                                              
                                                                                                                                
     Page 3, line 26:                                                                                                           
          Delete "(2)"                                                                                                          
          Insert "(3)"                                                                                                          
                                                                                                                                
     Page 3, line 30:                                                                                                           
          Delete "(3)"                                                                                                          
          Insert "(4)"                                                                                                          
                                                                                                                                
     Page 4, line 1, following "regulation;":                                                                                   
          Delete "or"                                                                                                           
                                                                                                                                
     Page 4, line 2:                                                                                                            
          Delete "(4)"                                                                                                          
          Insert "(5)"                                                                                                          
                                                                                                                                
     Page 4, line 4:                                                                                                            
          Delete "(5)"                                                                                                          
          Insert "(6)"                                                                                                          
                                                                                                                                
     Page 4, line 7, following "employees;":                                                                                    
          Insert "or"                                                                                                           
                                                                                                                                
     Page 4, lines 8 - 9:                                                                                                       
          Delete all material.                                                                                                  
                                                                                                                                
     Page 4, line 10:                                                                                                           
          Delete "(C)"                                                                                                          
          Insert "(B)"                                                                                                          
                                                                                                                                
     Page 4, line 15:                                                                                                           
          Delete "an"                                                                                                           
          Insert "a designated state"                                                                                           
                                                                                                                                
     Page 4, line 16, following "section,":                                                                                     
          Insert the following new material:                                                                                    
              "(1)  "designated state agency" has the                                                                           
      meaning given in AS 44.62.218, enacted by sec. 1 of                                                                       
     this Act;                                                                                                                  
               (2)"                                                                                                             
                                                                                                                                
[End of  Amendment 1 - CSHB  33(JUD) was reported from  the House                                                               
Judiciary Standing Committee.]                                                                                                  
                                                                                                                                

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