Legislature(2003 - 2004)
05/08/2003 03:35 PM Senate STA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SB 211-REGULATIONS: NOTICE AND DISTRIBUTION
CRAIG TILLERY, with the Department of Law, testified via
teleconference. He explained the bill relates to making notices
for proposed regulations more readable. It is designed to improve
public notice for changes to regulation and to reduce cost
through elimination of unnecessary action, the use of the
Internet and shortening notice periods. The full sectional
analysis found in the bill file addresses four basic changes:
· Changes the requirements in the Administrative Procedure
Act for publishing notice
· Makes notice distribution consistent across agencies
· Newspaper notices may be omitted for certain specialized
subject areas in which Internet notification would be
better suited
· Changes the requirements for distribution of the
Administrative Code to local government units
CHAIR GARY STEVENS noted the savings aren't reflected in the
fiscal note.
MR. TILLERY said there is a revised fiscal note indicating a
$258,000 savings and it's possible it wasn't sent to the
committee.
CHAIR GARY STEVENS confirmed they hadn't received the revised
note.
SENATOR LYMAN HOFFMAN pointed out that one copy of the AAC should
be made available at no charge to cities that request one. The
state would still realize a savings if copies weren't
automatically sent to all communities.
TAPE 03-29, SIDE A
5:05 pm
MR. TILLERY replied there are three ways to get copies. A
community could go online and print a copy if Internet access
were available, or a copy could be sent electronically, or a
paper copy could be sent to the community. By making communities
pay for copies they hope to give them the incentive to use the
most efficient alternative.
SENATOR HOFFMAN said that wasn't his question.
MR. TILLERY replied he understood the question to ask why
communities should pay.
SENATOR HOFFMAN restated his question and asked why not mail one
free copy to communities that request one and eliminate the cost
associated with automatic mailings to all communities.
Additionally, he disagreed with charging for an electronic
mailing. Charging communities for a copy of the code is promoting
a lack of information and is not a desirable public policy
direction.
MR. TILLERY replied this approach represents a savings to the
state.
SENATOR HOFFMAN said he represents some 70 communities and this
policy change would be a drastic mistake.
ROBERT PIERSON, Administrative Code coordinator in the Lieutenant
Governor's Office, said they are working toward efficient online
communication. He said it's the quarterly supplements that are
sent to communities that they believe are frequently discarded,
which is a waste of state funds. To date they have received no
negative comments regarding the change, but they don't know how
many of the clerks have read their email outlining the change.
The Administrative Code is currently online, but "it's not quite
perfected yet." They would like to make improvements "so that it
would be not necessarily official, but useful for 99 percent of
any kind of consultation you would normally take on a day to day
basis with the Administrative Code." When legal questions arise,
a city clerk would consult a city attorney. They are continuing
to offer the paper copies because there are a few places that
don't have Internet access.
The contract for publishing the Administrative Code will expire
at the end of 2003 and under current language the state would be
required to buy about 170 paper copies of the quarterly
supplements whether they extend the current contract or request
proposals for a new one. They would like the increased
flexibility to have a mix of options to negotiate with the
current publisher and for future contracts.
SENATOR HOFFMAN said if they were really trying to increase
accessibility he couldn't understand why there would be a charge
for electronic copies. The proposed system would offer no
incentive for moving away from a paper copy if the city was
forced to pay for an electronic copy as well.
CHAIR GARY STEVENS asked for verification that the electronic
copy would be available on a CD ROM and not via email.
MR. PIERSON said that was the case. The current cost for the four
quarterly supplements is $596 per year and he didn't know whether
that would burden small communities or not.
CHAIR GARY STEVENS asked what the price would be for a CD ROM.
MR. PIERSON said that would be negotiated with the publishers.
Currently there is a CD ROM available that has both the
Administrative Code and the statutes. He pointed out that cities
are now paying for copies of the statutes and he looks upon it as
an historical accident that the state is still paying for code
books.
SENATOR HOFFMAN pointed out it isn't necessary to put the
information on a CD ROM. It could and should be freely available
on the Internet.
MARK DAVIS, Director of Banking Securities and Corporations,
testified the bill would impact his division by allowing for
notices regarding proposed regulations to be made in a simplified
manner. This is consistent in the trend in administrative law,
which reduces publication costs and uses simplified notification
methods to reach individuals that are interested in commenting on
proposed regulations.
The proposed change in procedure would probably save the division
$7,800 a year and is already being used by the federal government
and some states. Section 26 with regard to securities, and
section 1 with respect to the revised Trust Act would be of
particular impact to his division.
RANDY REUDRICH from the Alaska Oil and Gas Conservation
Commission testified via teleconference to advise that the bill
would save the commission $20,000 a year in publishing costs.
Members of the industry exclusively attend the commission
meetings and he does not believe that the public notices increase
attendance.
SENATOR GRETCHEN GUESS asked Mr. Reudrich to clarify that the
commission meetings weren't held exclusively for industry and
that they weren't prohibitive of others attending.
MR. REUDRICH replied the industry, the media, and other
interested parties who might attend have all given positive
feedback regarding short term updates available electronically.
LINDA HALL, director of the Division of Insurance, testified that
newspaper publications for public notices have been unsuccessful
for the division. She said most of the regulations they
promulgate are technical in nature and directed at those they
regulate. The division currently regulates 12,000 registered
insurance companies and just 11 are domiciled in Alaska; they
have 2,500 resident licensees and over 12,000 non-resident
licensees. This translates to only 16 percent of the licensed
agents and one percent of the insurance companies actually having
ready access to newspaper publications. She observed the act
doesn't prohibit the division from delivering publications when
the matter is in the public interest.
Last year the Division of Insurance spent $9,700 for newspaper
advertising and they estimate this change would save them $7,300.
They would continue to do targeted mailings because they are an
effective way to get information out about upcoming hearings.
Although she hasn't been in the director position very long, she
has attended almost every Division of Insurance hearing in the
last ten years and can attest that they aren't widely attended by
the public, which means the money spent on newspaper publications
have not been effective.
CHAIR GARY STEVENS announced he would hold SB 211 in committee.
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