Legislature(1999 - 2000)

04/15/1999 03:05 PM House ARR

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
 JOINT COMMITTEE ON ADMINISTRATIVE REGULATION REVIEW                                                                            
                    April 15, 1999                                                                                              
                      3:05 p.m.                                                                                                 
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                                 
                                                                                                                                
Representative Jeanette James, Vice-chair                                                                                       
Senator Georgianna Lincoln                                                                                                      
Representative Mary Kapsner                                                                                                     
Representative John Harris                                                                                                      
                                                                                                                                
MEMBERS ABSENT                                                                                                                  
                                                                                                                                
Senator Robin Taylor, Chairman                                                                                                  
                                                                                                                                
COMMITTEE CALENDAR                                                                                                              
                                                                                                                                
Proposed Airport Regulations                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                                
                                                                                                                                
Mr. Kurt Parkan, Deputy Commissioner                                                                                            
Department of Transportation and Public Facilities                                                                              
3132 Channel Dr.                                                                                                                
Juneau, AK 99801-7898                                                                                                           
POSITION STATEMENT:  Presented proposed regulations                                                                             
                                                                                                                                
Mr. Steve Pavish, Leasing Officer                                                                                               
Department of Transportation and Public Facilities                                                                              
2525 Aviation Blvd.                                                                                                             
Anchorage, AK 99519                                                                                                             
POSITION STATEMENT:  Presented proposed regulations                                                                             
                                                                                                                                
Mr. John Steiner, Assistant Attorney General                                                                                    
Department of Law                                                                                                               
1031 W. 4th Ave. suite 200                                                                                                      
Anchorage, AK 99501-1994                                                                                                        
POSITION STATEMENT:  Commented on proposed regulations                                                                          
                                                                                                                                
Mr. Eddie Trimmer                                                                                                               
PO Box 361                                                                                                                      
Willow, AK 99688                                                                                                                
POSITION STATEMENT:  Suggested changes to the proposed regulations                                                              
                                                                                                                                
Ms. Kim Ross, Director                                                                                                          
Alaska Air Carriers Association                                                                                                 
929 E. 81st #108                                                                                                                
Anchorage, AK 99518                                                                                                             
POSITION STATEMENT:  Offered testimony on proposed regulations                                                                  
                                                                                                                                
Mr. Ralph Semuels                                                                                                               
Pen Air                                                                                                                         
6100 Boeing Ave.                                                                                                                
Anchorage, AK 99502                                                                                                             
POSITION STATEMENT:  Offered testimony on proposed regulations                                                                  
                                                                                                                                
Mr. Grant Thompson                                                                                                              
Cape Smythe Air                                                                                                                 
PO Box 549                                                                                                                      
Barrow, AK 99723                                                                                                                
POSITION STATEMENT:  Offered testimony on proposed regulations                                                                  
                                                                                                                                
Mr. John Eckles, President                                                                                                      
Alaska Air Carriers Association                                                                                                 
5701 Silverado Way #L                                                                                                           
Anchorage, AK 99518                                                                                                             
POSITION STATEMENT:  Offered testimony on proposed regulations                                                                  
                                                                                                                                
Mr. Fred Charlo                                                                                                                 
Tanana Air Service                                                                                                              
PO Box 60713                                                                                                                    
Fairbanks, AK 99706                                                                                                             
POSITION STATEMENT:  Offered testimony on proposed regulations                                                                  
                                                                                                                                
Mr. Tim LaPorte                                                                                                                 
Iliamna Air Taxi                                                                                                                
PO Box 109                                                                                                                      
Iliamna, AK 99606                                                                                                               
POSITION STATEMENT:  Offered testimony on proposed regulations                                                                  
                                                                                                                                
Mr. Mike Morgan                                                                                                                 
Warbelows Air Ventures                                                                                                          
3758 University Ave. S.                                                                                                         
Fairbanks, AK 99709                                                                                                             
POSITION STATEMENT:  Offered testimony on proposed regulations                                                                  
                                                                                                                                
ACTION NARRATIVE                                                                                                                
                                                                                                                                
TAPE 99-02, SIDE A                                                                                                              
Number 001                                                                                                                      
                                                                                                                                
VICE-CHAIRMAN JEANETTE JAMES called the Joint Committee on                                                                      
Administrative Regulation Review meeting to order at 3:05 p.m. and                                                              
announced the committee would consider new proposed regulations                                                                 
from the Department of Transportation and Public Facilities                                                                     
(DOT/PF).                                                                                                                       
                                                                                                                                
MR. KURT PARKAN, Deputy Director of the Department of                                                                           
Transportation and Public Facilities (DOT/PF), directed the                                                                     
committee's attention to the handout entitled Airport Regulations                                                               
Update Project: Title 17, Project Objectives. MR. PARKAN explained                                                              
he would review the handout with the help of MR. STEVE PAVISH,                                                                  
leasing officer for DOT/PF.                                                                                                     
                                                                                                                                
REPRESENTATIVE JAMES said she feels the most important thing to                                                                 
understand is the process by which these regulations have come                                                                  
about and the process by which the final form will be adopted. She                                                              
expressed concern with the speed of the process.                                                                                
                                                                                                                                
MR. PARKAN said the handout explained the objectives of the                                                                     
proposed regulations and reviewed the history of the project as                                                                 
well as the ambiguity and obsolescence of the current airport                                                                   
regulations. The handout compares existing and proposed                                                                         
regulations, and explains the reasons DOT/PF took a comprehensive                                                               
approach to new regulations, why negotiated rule-making was not                                                                 
pursued, and gives examples of regulations that have been                                                                       
substantially changed in response to public comment. MR. PARKAN                                                                 
said though the original proposed regulations had a fiscal note                                                                 
attached, the new proposed regulations should generate income.                                                                  
REPRESENTATIVE JAMES asked if program receipts are expected and                                                                 
have been calculated into the budget for Fiscal Year 1999 (FY '99)                                                              
and FY 2000.                                                                                                                    
                                                                                                                                
Number 140                                                                                                                      
                                                                                                                                
MR. STEVE PAVISH explained there are four major objectives that                                                                 
DOT/PF sought to accomplish with new regulations: to replace                                                                    
obsolete regulations, to adopt new regulations necessary to comply                                                              
with Federal Aviation Administration (FAA) requirements, to                                                                     
implement a new statute (HB 543), and to address aircraft parking                                                               
problems.                                                                                                                       
                                                                                                                                
MR. PAVISH said this project dates back to 1994 and there have been                                                             
five different versions of regulations, each modified from the                                                                  
previous in response to public input and advice from the Department                                                             
of Law. MR. PAVISH noted this section of the packet include                                                                     
statistics on the number of hearings held and the amount of public                                                              
comment.                                                                                                                        
                                                                                                                                
Number 177                                                                                                                      
                                                                                                                                
SENATOR LINCOLN asked where the thirty public hearings were held.                                                               
MR. PAVISH replied, "Everywhere." He listed Anchorage, Bethel,                                                                  
Dillingham, Fairbanks, Juneau, Kotzebue, Nome and Sitka. SENATOR                                                                
LINCOLN noted no hearings were held in Aniak or McGrath. MR. PAVISH                                                             
replied hearings were held in major centers of rural Alaska.                                                                    
                                                                                                                                
SENATOR LINCOLN asked about the notices mailed informing tenants of                                                             
these hearings. MR. PAVISH replied DOT/PF mailed notices to all                                                                 
tenants and users: tie down renters, commercial carriers,                                                                       
communities and city governments. He said a typical mailing would                                                               
have gone out to 3,500 people.                                                                                                  
                                                                                                                                
Number 224                                                                                                                      
                                                                                                                                
SENATOR LINCOLN said she has read all 113 pages of information                                                                  
provided by the Department and she is concerned that the recent                                                                 
public comment workshops did not begin until after Easter and were                                                              
not made a part of the record. She asked if all the comments made                                                               
since the beginning of the process were included with the record or                                                             
if people had to comment more than once for their ideas to count.                                                               
MR. PAVISH responded that before the most recent public comment                                                                 
period, all the public comment ran together. Now, the Department of                                                             
Law has advised that too much time has passed and this new proposal                                                             
must be considered a new project, not a continuation of the                                                                     
original project. He said this separation was also necessary to                                                                 
ensure public comments addressed the newest proposed regulations,                                                               
rather than older drafts.                                                                                                       
                                                                                                                                
Number 285                                                                                                                      
                                                                                                                                
REPRESENTATIVE JAMES asked if DOT/PF would provide the committee                                                                
with an example of a typical public hearing notice mailing. MR.                                                                 
PAVISH assured the committee he would send one to them.                                                                         
                                                                                                                                
REPRESENTATIVE JAMES asked MR. PAVISH if this packet of information                                                             
had just been put together. He said some of the information dates                                                               
to April 2, but most of it has been compiled in the past few days.                                                              
REPRESENTATIVE JAMES remarked, "It's overwhelming."                                                                             
                                                                                                                                
Number 309                                                                                                                      
                                                                                                                                
REPRESENTATIVE KAPSNER asked how it could be possible for them to                                                               
tackle this volume of information. She further wondered what it                                                                 
might be like for rural Alaskans and the general public to attempt                                                              
to interpret this information. She asked if a brief condensation of                                                             
the information had been made available. MR. PAVISH replied no                                                                  
summary had been done; "The devil is in the details, so, you have                                                               
to show people everything you are doing."                                                                                       
                                                                                                                                
REPRESENTATIVE KAPSNER expressed concern that rural Alaska is very                                                              
different than any other part of the world. She asked how many                                                                  
people on the DOT/PF are sensitive to and knowledgeable about the                                                               
dynamics of rural communities. MR. PAVISH said a team of twenty                                                                 
experienced people worked on this proposal. MR. PARKAN added that                                                               
the DOT/PF leasing officers have all been out to the lease sites in                                                             
the communities.                                                                                                                
                                                                                                                                
Number 348                                                                                                                      
                                                                                                                                
MR. PAVISH continued to explain the handout and reported that there                                                             
is "very little in the existing regulations that doesn't need                                                                   
clarification, updating, amplification or repeal; most of the                                                                   
regulations are very old." He gave examples of outdated regulations                                                             
regarding airport fueling regulations that conflict with the state                                                              
fire code and business activity regulations that are so broad they                                                              
are nearly impossible to enforce.                                                                                               
                                                                                                                                
REPRESENTATIVE JAMES asked MR. PAVISH what DOT/PF has done to fix                                                               
these problems. MR. PAVISH explained they have been dealt with                                                                  
effectively with the new regulations. He suggested members look at                                                              
the comparison of old and new regulations in the handout.                                                                       
                                                                                                                                
MR. PAVISH emphasized that no one is sure of the rules under the                                                                
current regulations. He said the Department of Law made it clear to                                                             
DOT/PF that rules the public have to follow must be made in                                                                     
regulation, not by ad hoc policy.                                                                                               
                                                                                                                                
Number 400                                                                                                                      
                                                                                                                                
REPRESENTATIVE KAPSNER asked how much discretion the proposed                                                                   
regulations allow as compared to the old regulations. MR. PAVISH                                                                
replied the amount of discretion has been limited. MR. PARKAN added                                                             
the regulations clearly allow discretion, but a concern expressed                                                               
in public comment was that current regulations allow too much                                                                   
discretion. He said some situations merit discretion for airport                                                                
managers and that has been included.                                                                                            
                                                                                                                                
REPRESENTATIVE KAPSNER recalled a conversation from the first ARR                                                               
meeting in which it was discussed that sometimes discretion is                                                                  
abused harshly and leads to liability for the state. MR. PAVISH                                                                 
said the discretion left in the proposed regulations has been                                                                   
confined and identified, "It's not a whole universe of discretion,                                                              
it's limited", he said.                                                                                                         
                                                                                                                                
MR. PAVISH gave another example of existing regulations relating to                                                             
weapons which conflict with current statute. He said currently                                                                  
DOT/PF is compelled to enforce FAA security requirements with no                                                                
regulations and it is very confusing. REPRESENTATIVE JAMES said                                                                 
this topic interests her as one of the issues with the concealed                                                                
carry legislation was that bush pilots must carry a gun (which they                                                             
do), but they do so in violation of state law. She asked what the                                                               
regulations have done in this situation. MR. PAVISH said they have                                                              
let the law supersede regulations, except in two specific                                                                       
situations. MR. PARKAN added that the existing regulations are so                                                               
broad, they sought to narrow them and limit the discretion allowed.                                                             
                                                                                                                                
REPRESENTATIVE JAMES agreed with REPRESENTATIVE KAPSNER that rural                                                              
Alaska is totally unique and the restrictions that apply generally                                                              
to most areas may not be needed in others. She said past                                                                        
regulations have allowed the Commissioner of DOT/PF discretion                                                                  
without any guidelines.                                                                                                         
                                                                                                                                
REPRESENTATIVE JAMES acknowledged it is a difficult task to write                                                               
regulations to cover all the varied areas of Alaska. She said                                                                   
regulations like this need "room for movement and room for                                                                      
reasonableness . . . I'm waiting to see if this does that." MR.                                                                 
PARKAN agreed.                                                                                                                  
                                                                                                                                
Number 485                                                                                                                      
                                                                                                                                
SENATOR LINCOLN stated she believes there should be three types of                                                              
regulations: urban, rural and bush. She hopes that urban                                                                        
regulations will apply only to urban areas. MR. PARKAN said the                                                                 
Department tried to address both similarities add differences of                                                                
urban and rural Alaska and tried to avoid "treating people                                                                      
differently just for the sake of being different."                                                                              
                                                                                                                                
MR. PAVISH indicated that some of the proposed regulations will                                                                 
only apply if and when the Commissioner makes a determination they                                                              
are needed.                                                                                                                     
                                                                                                                                
REPRESENTATIVE KAPSNER stated she does not want disparity in how                                                                
people are treated.  She has heard from some pilots who feel picked                                                             
on by airport bureaucrats, and she hopes for consistency in                                                                     
regulations. MR. PARKAN said inconsistency is the problem with the                                                              
current regulations and the Department hopes to improve things with                                                             
the new system.                                                                                                                 
                                                                                                                                
Number 517                                                                                                                      
                                                                                                                                
MR. PAVISH moved on to his next point: airport regulations are so                                                               
interrelated that comprehensive change is the best way to proceed.                                                              
REPRESENTATIVE JAMES remarked that perhaps changes could be                                                                     
categorized into "smaller bites."                                                                                               
                                                                                                                                
MR. PAVISH moved on to describe progress and change made in                                                                     
response to public comment on the proposed regulations since 1994.                                                              
He showed how an initial proposal has changed several times over                                                                
the course of several public comment and revision periods.                                                                      
                                                                                                                                
REPRESENTATIVE JAMES asked about the section that reads "except as                                                              
otherwise provided by this section or as authorized by the                                                                      
Department." She asked if the authorization would be in writing.                                                                
MR. PAVISH replied it would be.                                                                                                 
                                                                                                                                
MR. PAVISH concluded his comments by emphasizing the fact that                                                                  
airports are complex facilities used by people with different and                                                               
often conflicting interests; they need rules. Also, he said these                                                               
proposed regulations are the most liberal regulations in the U.S.                                                               
They offer the most detail and less airport operator discretion                                                                 
than is typical of public and community operated airports. MR.                                                                  
PAVISH said, "They are good. They're good because we've had a lot                                                               
of input from the public. The state airport system and airport                                                                  
users would be much better off with new regulations than living                                                                 
with the existing ones."                                                                                                        
                                                                                                                                
TAPE 99-02, Side B                                                                                                              
Number 592                                                                                                                      
                                                                                                                                
REPRESENTATIVE JAMES said Alaska is different because many parts of                                                             
the state cannot be reached without airplanes, that is why the                                                                  
State must be more lenient with regulations.                                                                                    
                                                                                                                                
REPRESENTATIVE JAMES mentioned Administrative Order 157 (A.O. 157),                                                             
issued by Governor Knowles June 5, 1995. She said this order                                                                    
implemented some of her ideas about revising the regulation making                                                              
process. She asked if the Department had considered minimizing the                                                              
cost of the proposed regulations to the public as is directed in                                                                
A.O. 157. She remarked she knows this is a revenue generating                                                                   
project. MR. PAVISH replied that the new regulations contain                                                                    
revenue generating provisions that are expected to produce six to                                                               
seven hundred thousand dollars annually.                                                                                        
                                                                                                                                
MR. PAVISH said the issue of cost was raised at each phase of the                                                               
public comment period. These regulations are not cost-free but they                                                             
"cover those blank spots in existing regulations."  Generally,                                                                  
these regulations do not institute a lot of changes, they merely                                                                
clear up the existing policy and spell out the rules more clearly.                                                              
                                                                                                                                
Number 535                                                                                                                      
                                                                                                                                
REPRESENTATIVE JAMES asked at what point the regulation process is                                                              
now and what the deadline will be for public comment on the                                                                     
proposed changes.  MR. PAVISH replied the deadline is April 23.                                                                 
REPRESENTATIVE JAMES asked if the comments need to be in writing.                                                               
MR. PARKAN believed the Department could consider comments made at                                                              
this public hearing. MR. STEINER interjected that if the hearing                                                                
was recorded and transcribed and the record was submitted, the                                                                  
Department could consider the comments as part of the record.                                                                   
                                                                                                                                
Number 509                                                                                                                      
                                                                                                                                
REPRESENTATIVE JAMES asked where the Department gets its authority                                                              
to require testimony be submitted in writing.  MR. STEINER                                                                      
responded that the Department is required to keep a record of                                                                   
testimony and though the statute allows both written and oral                                                                   
comments, taking oral comments is not required.                                                                                 
                                                                                                                                
REPRESENTATIVE JAMES asked if legislative comments also need to be                                                              
in writing. RM. STEINER said he is not aware of any distinction                                                                 
between legislative comments and comments from the general public.                                                              
REPRESENTATIVE JAMES said she would look into the statutory                                                                     
authority of the Administrative Regulation Review Committee(ARRC).                                                              
She explained the committee generally reviews proposed regulations                                                              
and regulations that are problematic. She said the committee would                                                              
like to communicate and work with the agencies, as this may defuse                                                              
some of the animosity between the Departments and the Legislature.                                                              
                                                                                                                                
MR. STEINER noted that the Department is at all times free to                                                                   
consider the committee's remarks regarding the regulation process.                                                              
The limitation he mentioned refers only to specific comments on the                                                             
proposed regulations. REPRESENTATIVE JAMES noted that timing is                                                                 
critical, as there is such a short period before the deadline and                                                               
legislators are in the middle of the budget process. She said this                                                              
is overwhelming for legislators.                                                                                                
                                                                                                                                
Number 461                                                                                                                      
                                                                                                                                
SENATOR LINCOLN stated her concern with the process is that the                                                                 
public has one month to read volumes of regulations and information                                                             
contained within this proposal. "I think that's unreasonable . . .                                                              
the Department sat on it for 8 months . . .that's the problem I've                                                              
got with the process."                                                                                                          
                                                                                                                                
MR. EDDIE TRIMMER, testifying from Mat-Su, alleged that even with                                                               
all the people given notice of the proposed regulations, not all                                                                
affected parties are informed. MR. TRIMMER said that the use of                                                                 
discretion on the part of airport managers leads to discrimination                                                              
in the application of that discretion. He said the proposed                                                                     
regulations will affect every person who flies in Alaska and the                                                                
restrictions contained within them are devastating.                                                                             
                                                                                                                                
                                                                                                                                
MR. TRIMMER claimed inefficiency in the Department caused months of                                                             
delay in releasing the proposed regulations and now the public has                                                              
only one month to respond.                                                                                                      
                                                                                                                                
MR. TRIMMER opposed the proposed regulations, saying the draft is                                                               
wordy, lengthy, confusing and overly discretionary. It makes too                                                                
many changes to the current regulations and MR. TRIMMER blamed the                                                              
failure of the proposal on inefficiency and over staffing within                                                                
DOT/PF.                                                                                                                         
                                                                                                                                
Number 330                                                                                                                      
                                                                                                                                
MS. KIM ROSS, Director of the Alaska Air Carriers Association, said                                                             
she has waged an 11-year battle with DOT/PF over leasing                                                                        
requirements. She expressed frustration with the time period                                                                    
allotted for public comment and said the Department of Law took 8                                                               
months to make substantial changes to the earlier draft of the                                                                  
proposed regulations that the air carriers had reviewed. Now, air                                                               
carriers have less than six weeks to comment on them.                                                                           
                                                                                                                                
MS. ROSS said the Air Carriers Association worked with the                                                                      
Department during their workshop process, but the fact that this                                                                
was not on the record was considered a "slap in the face" to the                                                                
industry. She mentioned that, at this point, the ten years of                                                                   
previous public comment had all been thrown out.                                                                                
                                                                                                                                
MS. ROSS reported that she and Mr. Kip Knudsen reviewed the                                                                     
proposed regulations line by line and she feels as if they are some                                                             
of the few users that actually understand what is contained in that                                                             
226 page document. She noted that Administrative Order 157 called                                                               
for the use of plain language and an attempt to make regulations                                                                
more accessible to the general public. She alleged this                                                                         
"mind-boggling" document does not comply.                                                                                       
                                                                                                                                
MS. ROSS stated air carriers are too busy organizing the summer                                                                 
season to try and respond to this document. Even Alaska Airlines                                                                
said they need at least an additional 90 day extension to reply to                                                              
DOT/PF regarding these proposed regulations.                                                                                    
                                                                                                                                
Number 250                                                                                                                      
                                                                                                                                
MS. ROSS gave credit to DOT/PF for  the improvements they made, but                                                             
pointed out there is still an underlying problem with the lack of                                                               
definition of the phrase "State's best interest." She said the                                                                  
proposed regulations still give too much discretion to airport                                                                  
managers and the Commissioner of DOT/PF. The State still has too                                                                
much authority to refuse to issue leases, renewals and extensions                                                               
"at a whim."                                                                                                                    
                                                                                                                                
MS. ROSS said she initially thought these proposed regulations were                                                             
an improvement, but feels they still do not give enough                                                                         
consideration to the airport tenants. The breadth of discretion                                                                 
allowed does not ensure fair lease terms and fees. She quoted AS                                                                
02.15.090(a) in calling for "rates and fees that are reasonable and                                                             
uniform for the same class of privilege or service."                                                                            
                                                                                                                                
Number 181                                                                                                                      
                                                                                                                                
MS. ROSS concluded the State of Alaska is unique and should not be                                                              
compelled to operate airports like in the Lower 48. Since the State                                                             
owns the airports, air carriers have no other option. Also, due to                                                              
existing statute, they can't even build their own airports and                                                                  
"have no place else to go." She assured the committees the air                                                                  
carriers want a "partnering" relationship with the State and are                                                                
willing to work with DOT/PF on this issue.                                                                                      
                                                                                                                                
Number 147                                                                                                                      
                                                                                                                                
MR. SEMUELS, Operations Manager from PenAir, thanked DOT/PF for                                                                 
their work on the proposed regulations and stated he needed an                                                                  
additional 90 days to review them. MR. SEMUELS detailed his                                                                     
specific problems with the proposed regulations. First, allowing                                                                
discretion to airport managers results in different "operational                                                                
details." This requires site specific training for every new                                                                    
employee. PenAir wants to train all its employees to do things                                                                  
safely, the same way every time.                                                                                                
                                                                                                                                
MR. SEMUELS agreed with Ms. Ross that the definition of the State's                                                             
best interest is too vague. He gave several conflicting ideas of                                                                
what might be considered the State's best interest, and said he                                                                 
would like to see more definition added to that phrase.                                                                         
REPRESENTATIVE JAMES agreed this is a difficult area to sort out.                                                               
                                                                                                                                
SENATOR LINCOLN asked MR. SEMUELS if he would find it difficult to                                                              
live under the current regulations if the comment period on the new                                                             
proposed regulations was extended. MR. SEMUELS said he would look                                                               
forward to that.                                                                                                                
                                                                                                                                
MR. GRANT THOMPSON, representing Cape Smythe Air Service, raised                                                                
the question of leases. He asked if the new regulations are adopted                                                             
that would mean all new leases. He also shared the concerns                                                                     
expressed about the definition of the State's best interest.                                                                    
                                                                                                                                
                                                                                                                                
TAPE 99-03, Side A                                                                                                              
Number 001                                                                                                                      
                                                                                                                                
MR. PARKAN said an old lease would be honored until a new lease was                                                             
entered into.                                                                                                                   
                                                                                                                                
MR. JOHN ECKLES, President of the Alaska Air carriers Association,                                                              
agreed with the comments made by Ms. Ross and Mr. SEMUELS. He said                                                              
the air carrier are the tenants that will be affected by the                                                                    
regulations, the other half of the air industry in Alaska. He                                                                   
expressed his concern with the speed of the process and the                                                                     
discretion the State has reserved within the regulations. SENATOR                                                               
LINCOLN asked how much time he would need to adequately review the                                                              
proposal, and he replied "a minimum of five months."                                                                            
                                                                                                                                
Number 046                                                                                                                      
                                                                                                                                
MR. FRED CIARLO, representing Tanana Air Service, reiterated that                                                               
the public comment period is very short and the best interest of                                                                
the State is vaguely defined. He added that the length of the                                                                   
appeal process is unreasonable and gives him the feeling the                                                                    
Department is saying "take it or leave it"; he thinks DOT/PF needs                                                              
to work together with business on this.                                                                                         
                                                                                                                                
MR. TIM LAPORTE, from Iliamna Air Taxi, wanted to know if they                                                                  
would get the same lease back. He said it is difficult for business                                                             
owners to invest in property without some certainty of retaining                                                                
their lease. MR. PARKAN said that is a concern under the old                                                                    
regulations, but DOT/PF would be able to address MR. LAPORTE'S                                                                  
situation under the new regulations.                                                                                            
                                                                                                                                
Number 116                                                                                                                      
                                                                                                                                
MR. MIKE MORGAN, from Warbelow Air Service in Fairbanks, agreed                                                                 
with previous testimony and added that the lack of assurance in the                                                             
continuity of a lease can cause a businessperson not to invest in                                                               
new facilities. He also asked why the negotiated rule-making                                                                    
process was not used in this case. He suggested, "Maybe we should                                                               
go back to the drawing board, start from scratch and do it right."                                                              
                                                                                                                                
REPRESENTATIVE KAPSNER asked the Department what their time line                                                                
for making a decision would be after hearing the testimony. MR.                                                                 
PARKAN said as things stand, the deadline for comments will be the                                                              
23rd of April.  MR. PAVISH said DOT/PF would then consider all the                                                              
comments, accept or reject individual comments, revise the                                                                      
regulations where applicable, and then turn the result over to the                                                              
Commissioner for adoption and a review by the Department of Law.                                                                
Then, if all went as could be expected, the new regulations would                                                               
be effective around October 1, 1999.                                                                                            
                                                                                                                                
Number 165                                                                                                                      
                                                                                                                                
REPRESENTATIVE JAMES commented that once the deadline has passed,                                                               
there will be a "blind section" of time, in which there will be no                                                              
word from the Department about the substance of the regulations and                                                             
changes that may or may not have been made.                                                                                     
                                                                                                                                
REPRESENTATIVE KAPSNER asked if DOT/PF waited five months, it would                                                             
be a matter of five months delay. MR. PARKAN agreed this is                                                                     
correct. He said, "We're hoping for some finality to these. It has                                                              
been years . . . this is not new, clearly it is the latest draft,                                                               
it is substantially similar to what has been worked on before. At                                                               
some point you have to draw the line.                                                                                           
                                                                                                                                
REPRESENTATIVE JAMES said in her opinion, 30 days, at this point in                                                             
time, is not enough. MR. PARKAN said, "It's been tough any time of                                                              
the year we've tried to do this. . ."                                                                                           
                                                                                                                                
Number 220                                                                                                                      
                                                                                                                                
SENATOR LINCOLN echoed REPRESENTATIVE JAMES'S statement that time                                                               
is critical to this issue. She repeated that the Governor's                                                                     
Administrative Order 157 set out a goal of clear language, a better                                                             
relationship with the public, a more accessible regulations process                                                             
with minimized costs and public and industry cooperation. She                                                                   
pointed to the letter from Commissioner Perkins, the fact that all                                                              
the workshops were held in Anchorage, the one day only call in line                                                             
for oral comments, and the fact that the Department disregarded                                                                 
years of prior comments made on these regulations as they were                                                                  
being developed and concluded that this process has not been                                                                    
consistent with the directives of Administrative Order 157.                                                                     
                                                                                                                                
SENATOR LINCOLN asked if DOT/PF cannot extend this comment period.                                                              
                                                                                                                                
Number 308                                                                                                                      
                                                                                                                                
SENATOR LINCOLN stated her intent to have the committee send a                                                                  
letter strongly urging DOT/PF to extend the comment period. She                                                                 
asked MR. PARKAN what the agency would have to do in order to                                                                   
extend the comment period. MR. PARKAN said they would have to send                                                              
out a written notice and it would cost $5,000.                                                                                  
                                                                                                                                
Number 341                                                                                                                      
                                                                                                                                
REPRESENTATIVE JAMES stated she has not had time to review the                                                                  
proposed regulations.  She said the next meeting on this issue was                                                              
3:00 p.m. on Thursday.                                                                                                          
                                                                                                                                
MR. STEINER said the Department of Law strongly endorses public                                                                 
comments in the regulations process.  The Department of                                                                         
Transportation is now operating with certain statutory changes and                                                              
no regulations to provide the mechanism for carrying them out.  The                                                             
result has not allowed the Department to process certain                                                                        
applications.   They have promulgated interim policies, but the                                                                 
precise legal status is somewhat in limbo were it to ever be                                                                    
challenged in court.  Because of those factors, he said                                                                         
consideration should be given to establishing regulations that                                                                  
could be modified later.                                                                                                        
                                                                                                                                
REPRESENTATIVE JAMES responded that her experience with regulations                                                             
is that they are designed to be a time consuming exercise and                                                                   
amending them is the same process as writing them.                                                                              
                                                                                                                                
MR. STEINER said there is one slight distinction with existing                                                                  
regulations.  Because there are only a few that cover broad areas                                                               
and more with specific application, it is very difficult to do                                                                  
piece meal changes.  Once regulations are adopted, it is much                                                                   
easier to make smaller changes.                                                                                                 
                                                                                                                                
Number 387                                                                                                                      
                                                                                                                                
SENATOR LINCOLN moved to extend the public comment period from                                                                  
April 23 to September 23 on the proposed airport regulations,                                                                   
including both the rural airport regulations and the Anchorage and                                                              
Fairbanks International Airport Regulations.                                                                                    
                                                                                                                                
REPRESENTATIVE JAMES noted as an Administrative Review Committee,                                                               
they couldn't extend the time, but they could request an extended                                                               
time.  There were no objections and the motion was approved.                                                                    
                                                                                                                                
REPRESENTATIVE JAMES said that Mr. LaPorte, Iliamna Air Taxi,                                                                   
wanted to get an extension on his lease and asked if that would                                                                 
have been possible under the old policy.                                                                                        
                                                                                                                                
MR. PAVISH said the problem is the imposition of HB 543.  Before HB
543, the existing regulations were fine, although narrow.  HB 543                                                               
passed in 1996 and caused conflicts between statute and existing                                                                
regulations.  There is an interim policy that tries to fix this                                                                 
situation, and Mr. Steiner thought Mr. LaPorte's problem could be                                                               
resolved if they could talk.                                                                                                    
                                                                                                                                
REPRESENTATIVE JAMES urged him to do that and added that it seemed                                                              
like a statute would override regulations.  She failed to                                                                       
understand why a statute couldn't be implemented before the                                                                     
regulations were written.                                                                                                       
                                                                                                                                
MR. PAVISH commented that HB 543 is a very brief statute with very                                                              
broad application and even the issue of the State's best interest                                                               
is a much bigger question.                                                                                                      
                                                                                                                                
REPRESENTATIVE JAMES said she thought the Legislature should use                                                                
clear language in statutes so that their intent is clear.                                                                       
REPRESENTATIVE JAMES adjourned the meeting at 5:12 p.m.                                                                         

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