HB 169 - LAA REVIEW OF PROPOSED REGULATIONS 1:12:20 PM CHAIR GATTO announced that the first order of business would be HOUSE BILL NO. 169, "An Act relating to the review of proposed regulations by the Legislative Affairs Agency; and providing for an effective date." The committee took an at-ease from 1:13 p.m. to 1:15 p.m. 1:15:23 PM SARAH MUNSON, Staff, Representative Carl Gatto, Alaska State Legislature, on behalf of the sponsor, the House Judiciary Standing Committee, chaired by Representative Gatto, explained that [by amending AS 24.20.105(e),] HB 169 would fix problems with the statutes pertaining to regulation review. Existing AS 24.20.105 enumerates who can request Legislative Legal and Research Services to conduct a review of proposed regulations - a standing committee, the Administrative Regulation Review Committee, and Legislative Council - and who Legislative Legal and Research Services is allowed to notify of the results of such a review when it finds a problem with the proposed regulations - the Administrative Regulation Review Committee, the president of the Senate, and the speaker of the House of Representatives. The existing statute does not, however, currently allow the standing committee or the Legislative Council that requested the review to be notified of such results, and HB 169 would address this problem by adding those entities to the list of those who could be notified. Furthermore, in order to address situations involving a review of proposed regulations implementing newly enacted legislation, HB 169 would add language allowing the prime sponsor of such legislation to also be consulted by Legislative Legal and Research Services during the review and to be notified of the results of the review if a problem with the proposed regulations is found. The bill would also add language allowing Legislative Legal and Research Services to notify the requester of the review in situations where no problem with the proposed regulations is found. MS. MUNSON mentioned that under the bill, when proposed regulations are found to have a problem, notification must be made in writing, but when no problem is found, notification may be communicated by [other, less formal means]. She also mentioned that some people have expressed concern that HB 169 would alter how regulations are promulgated, but pointed out that those concerns are unfounded because the bill only pertains to Legislative Legal and Research Services' review of, and subsequent communications regarding, proposed regulations. CHAIR GATTO indicated that HB 169 was developed at his request. MS. MUNSON, in response to questions, reiterated that under existing law, reviews may be requested by a standing committee, the Administrative Regulation Review Committee, or Legislative Council; and offered her understanding that when a problem with proposed regulations is found by Legislative Legal and Research Services, just the chair of the committee or council that requested the review would be notified. REPRESENTATIVE HOLMES indicated interest in possibly expanding the list of who could be notified. 1:22:15 PM LISA KIRSCH, Attorney, Legislative Legal Counsel, Legislative Legal and Research Services, Legislative Affairs Agency (LAA), as [one of the drafters], explained that under Alaska's Administrative Procedure Act (APA), all legislators get notice of proposed regulations, and so if an individual legislator has an interest in a particular proposed regulation but is not a member of one of the aforementioned legislative bodies, under other provisions of existing AS 24.20, he/she could still request a legal opinion on the proposed regulation, which would then undergo a similar, confidential review as that provided for under AS 24.20.105. In response to a question about the phrase, "consult with", as used on page 1, lines 6 and 9, she explained that under current law, when conducting a review of proposed regulations, Legislative Legal and Research Services is allowed to discuss the proposed regulation and the issues surrounding it with the Department of Law (DOL), the requesting legislative body, and the state agency proposing the regulatory change. Under the bill, in conducting a review of proposed regulations implementing newly enacted legislation, Legislative Legal and Research Services would also be able to discuss those things with the sponsor of the enabling legislation. MS. MUNSON - in response to a question about the term, "statutory standards" as used in the sponsor statement - clarified that under existing AS 24.20.105(d)(1)-(3), in reviewing a proposed regulation, Legislative Legal and Research Services is required to evaluate the legality and constitutionality of the proposed regulation; whether the state agency has the statutory authority to adopt the proposed regulation in order to implement, interpret, make specific, or otherwise carry out a statute; and whether the proposed regulation is consistent with the applicable statutes. MS. KIRSCH noted that during such reviews, Legislative Legal and Research Services also evaluates whether a proposed regulation is consistent with legislative intent - at least in so far as such can be determined. CHAIR GATTO, after ascertaining that no one else wished to testify, closed public testimony on HB 169. 1:33:39 PM DEBORAH BEHR, Chief Assistant Attorney General - Statewide Section Supervisor, Legislation & Regulations Section, Civil Division (Juneau), Department of Law (DOL), in response to questions and comments, indicated that the existing limitations under AS 24.20.105 regarding who may request a Legislative Legal and Research Services' review of a proposed regulation and who receives notification of the results of such a review were meant to ensure that a review didn't take on a life of its own, particularly when the proposed regulation raised constitutional issues. She, too, noted that under Alaska's Administrative Procedure Act (APA), all legislators get notice of proposed regulations, and that under other provisions of AS 24.20, any legislator may request a review of a proposed regulation from Legislative Legal and Research Services. CHAIR GATTO indicated that he is disinclined to further expand the bill's proposed list of who is notified of review results. MS. KIRSCH, in response to a question, clarified that the bill is not proposing to expand the list of who can request a review under AS 24.20.105; reiterated aspects of Ms. Munson's explanation of the bill; and pointed out that if a legislator isn't specifically entitled under AS 24.20.105 to receive notification of the results of a review conducted under that provision, he/she could simply ask Legislative Legal and Research Services to conduct a review of the proposed regulation under other provisions of AS 24.20. REPRESENTATIVE KELLER expressed favor with keeping the bill's proposed list of who may receive notification of review results under AS 24.20.105 as is. 1:40:45 PM REPRESENTATIVE PRUITT moved to report HB 169 out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, HB 169 was reported from the House Judiciary Standing Committee.