Legislature(2005 - 2006)BUTROVICH 205
05/03/2005 08:30 AM JUDICIARY
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
CSHB 33(FIN)-EFFECT OF REGULATIONS ON SMALL BUSINESSES 8:44:11 AM CHAIR RALPH SEEKINS announced HB 33 to be up for consideration. MR. MIKE PAWLOWSKI, staff to Representative Kevin Meyer introduced HB 33. The bill is modeled on the Federal Regulatory Flexibility Act of 1980, which saved small businesses over $17 billion last year in compliance costs. Several states have instituted a version of HB 33. The administration and the state chamber of commerce support the bill. 8:44:58 AM SENATOR GUESS asked Mr. Pawlowski to explain the excluded list on Page 3, lines 17-24. MR. PAWLOWSKI said the exclusions on lines 18-20 are subject to confirmation by the Legislature and made up of individuals who represent the interest of industry. Lines 21-23 are a series of statutory authority for the Department of Environmental Conservation (DEC). 8:47:32 AM The Local Boundary Commission was outside the intent of the sponsor. The issues related to Medicaid and Medicare cost reimbursement regulations were removed saving the state a large amount of money. 8:49:01 AM Senator Charlie Huggins and Senator Gene Therriault joined the committee. SENATOR GUESS asked the reason the four agencies are detailed on Page 4, lines 15-19. MR. PAWLOWSKI responded the bill started with economic effect then moved to the "govern the conduct" standard. They quickly found an absurd amount of regulations and agencies. The primary agencies listed narrow things down to a pilot program. 8:50:35 AM SENATOR GUESS asked the reason for not including the Department of Revenue. MR. PAWLOWSKI responded the concern was largely based on taxing and reporting requirements for taxes. SENATOR GUESS asked the reason there was no sunset. MR. PAWLOWSKI explained the four departments listed on Page 4, lines 15-19 tell businesses how to conduct their business. The agencies affected outside the Department of Community and Economic Development (DCED), believe they can absorb the costs within their agencies, which is why there are fiscal notes. 8:52:54 AM SENATOR GUESS stated for the record there would be an opportunity cost because a state employee will be performing an extra duty. MR. PAWLOWSKI clarified HB 33 only applies to new, proposed, or regulations that are opened under the petition process. 8:54:31 AM SENATOR FRENCH stated the model act calls for cutoff of 500 employees and HB 33 calls for cutoff at 100. He asked Mr. Pawlowski the reason for the difference. MR. PAWLOWSKI directed committee members to a list in their packets, which is based on the employee size of the business. The bill is tailored to the needs of Alaska. SENATOR FRENCH asked the watchdog agency in charge of ensuring the flexibility analysis is happening at the regulatory process. MR. PAWLOWSKI answered DCED. 8:57:23 AM MR. CHRIS KENNEDY, assistant attorney general, Department of Law (DOL), testified he has been working closely with Representative Meyer's staff. Governor Murkowski asked to exclude resource development regulations from the bill at this time because of the risk of delay. 8:59:36 AM MR. KENNEDY continued HB 33 would not add much new process. The intent is to restructure what the agencies are already doing and impose a little structure to ensure that when considering the regulations they are thinking specifically about the impact on small businesses. 9:02:33 AM SENATOR HUGGINS moved CSHB 33(FIN) from committee with individual recommendations and attached fiscal note(s). There being no objection, the motion carried.