Legislature(2003 - 2004)

05/16/2003 02:37 PM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                                                                                                                                
     SENATE BILL NO. 211                                                                                                        
     "An Act  relating to the publishing  and furnishing  of certain                                                            
     public notices regarding  regulations or rules of certain state                                                            
     agencies;    relating   to    distribution   of   the    Alaska                                                            
     Administrative   Code,  Alaska  Administrative   Register,  and                                                            
     supplements  to  the code  or register;  and  providing for  an                                                            
     effective date."                                                                                                           
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
CRAIG TILLERY,  Assistant Attorney  General, Environmental  Section,                                                            
Civil  Division  (Anchorage),   Department  of  Law,  testified  via                                                            
teleconference  from Anchorage and  informed the Committee  that the                                                            
intent of this  legislation is to improve the public  notice process                                                            
pertaining  to State regulatory change  notices and to reduce  costs                                                            
to the State through the  elimination of unnecessary action, the use                                                            
of the Internet  where appropriate, and the allowance  "for briefer,                                                            
more easily  understood notices" by  changing Sections 23  and 24 of                                                            
the Alaska  Administrative  Procedures  Act. He  explained that  the                                                            
briefer  notices, while  containing  pertinent  information such  as                                                            
what regulation is being  changed and how to obtain more information                                                            
regarding  the  change  is anticipated  to  reduce  the advertising                                                             
content by approximately  75 percent. He asserted that these changes                                                            
would  make  the  advertisement  more  noticeable  and  more  easily                                                            
understood, and that directing  people to a phone number or Internet                                                            
site would enable  people to acquire more detailed  information than                                                            
is currently required by  statute. He stressed that this legislation                                                            
would not prohibit  a State agency from advertising  a more detailed                                                            
notice were a situation to require it.                                                                                          
                                                                                                                                
Mr. Tillery  mentioned  that this  concept has  been considered  for                                                            
numerous  years and  that  approximately  six years  prior,  similar                                                            
legislation  had been introduced.  He informed  that the  continuing                                                            
growth   and  availability   of  the  Internet   has  allowed   this                                                            
legislation to become appropriate.                                                                                              
                                                                                                                                
Mr.  Tillery  continued  that,   "while  limited  in  scope,  but  a                                                            
significant  departure   from  what  is  currently  in  statute"  is                                                            
language  that would allow  some agencies  to not advertise  certain                                                            
notices  in newspapers  as,  he  shared that  upon  review,  certain                                                            
notices have  been determined  to be of disinterest  to the  general                                                            
public but are rather of  a technical nature and of more interest to                                                            
individuals  who have  easy  access to  the Internet  and  typically                                                            
receive their  notices in that manner or through trade  associations                                                            
or mailing  lists.  He noted  that  the identified  regulations  are                                                            
identified in Sections 1, 2, 10, 11, 12,13,16,19,20,26, and 27.                                                                 
                                                                                                                                
Mr. Tillery  noted that, thirdly,  the bill would allow agencies  to                                                            
advertise notices  in one newspaper  rather than three as  currently                                                            
required  or  via  the Internet  or  through  mailings.  Lastly,  he                                                            
stated,  the legislation  would eliminate  the  requirement for  the                                                            
State to  provide copies  and updates of  the Alaska Administrative                                                             
Code to  all municipalities  or  local governments.  He stated  that                                                            
many local  governments  have indicated  that these  copies are  not                                                            
necessary and that access  to the information via the Internet would                                                            
be adequate.                                                                                                                    
                                                                                                                                
Co-Chair  Green  surmised  the  purpose  of the  legislation  is  to                                                            
streamline  the  State's  noticing  system  to  align  with  today's                                                            
communication environment.                                                                                                      
                                                                                                                                
Mr. Tillery agreed.                                                                                                             
                                                                                                                                
MARK   DAVIS,   Director,   Division  of   Banking,   Securities   &                                                            
Corporations,  Department  of Community  and  Economic Development,                                                             
testified  via teleconference  from Anchorage  and stated that  this                                                            
bill  would  allow proposed  changes  in  regulations  for  banking,                                                            
corporations,  and securities to be  noticed in a simplified  format                                                            
in a newspaper  and/or by electronic  means. He continued  that this                                                            
would  allow cost  savings  in addition  to  an improved  method  of                                                            
notice to interested  parties, as;  he opined those individuals  are                                                            
Internet users  and are familiar with  electronic communication.  He                                                            
stated  that proxy  programs issued  through the  Division would  be                                                            
addressed by language  allowing the Division to use  whatever method                                                            
it deems necessary or reasonable.                                                                                               
                                                                                                                                
Senator  Taylor commented  that fiscal  note #2  from the Office  of                                                            
Management  and Budget indicates  that the  Department of  Community                                                            
and Economic  Development would save  approximately $258,000  by the                                                            
implementation  of  this  legislation  as the  result  of  newspaper                                                            
advertising  savings. He  voiced appreciation  for  the efforts  put                                                            
forth on this  legislation and noted  the lack of opposition  to the                                                            
legislation from the newspaper industry.                                                                                        
                                                                                                                                
Co-chair  Green mentioned that  a similar bill  is advancing  in the                                                            
House of Representatives.  She commented  that newspapers  are using                                                            
the Internet to  advance their product, and she opined  that perhaps                                                            
the  newspaper  industry is  coming  "to  the realization  that  the                                                            
Internet is the thing of today."                                                                                                
                                                                                                                                
Senator  Olson voiced  concern that  Internet access  is limited  in                                                            
rural  Alaska  and  therefore,   he  inquired  how  the  changes  in                                                            
newspaper notices  would affect the dissemination  of information in                                                            
those areas.                                                                                                                    
                                                                                                                                
Mr. Davis  responded  that typically  those areas  do not  currently                                                            
receive  these  newspaper  notices  unless   a change  specifically                                                             
affects the area.  He noted that the three newspapers  that would be                                                            
affected  by this  legislation  would  be those  serving  Anchorage,                                                            
Fairbanks  and  Juneau,  or  occasionally   the  Alaska  Journal  of                                                            
Commerce.  He reiterated  that this  legislation  would not  prevent                                                            
notices  if  deemed  necessary  in  those  areas,  and  that,  while                                                            
Internet access might not  be available in all communities; he noted                                                            
that not all communities receive a newspaper.                                                                                   
                                                                                                                                
Senator  Olson   argued  that  newspapers   are  available   in  all                                                            
communities  as they are received  via the mail. However,  he stated                                                            
that Internet access is  only available at schools or clinics, which                                                            
are  not   places  that   someone  would   ordinarily  go   to  read                                                            
regulations.                                                                                                                    
                                                                                                                                
Co-Chair Green ordered the bill HELD in Committee.                                                                              
                                                                                                                                

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