HSTA - 2/23/95 HB 130 - REGULATION ADOPTION PROCEDURES & REVIEW CHAIR JAMES announced that the next bill on the agenda was HB 130. She said that Bruce Campbell, legislative aide to bill sponsor Representative Pete Kelly, was there to make the presentation. Number 610 BRUCE CAMPBELL, Legislative Aide to Representative Pete Kelly, stated that Representative Kelly had already given the committee the sponsor overview of HB 130 at an earlier meeting, and that he would like to continue that discussion. He said he would present a draft committee substitute of the bill and urge passage of the bill. Mr. Campbell handed out a map of the current regulation process and the various proposals to reform that process for the subcommittee on regulation reform to review. He said this would allow them to see where each of the various regulation reform bills were performing a given task. This chart included an overview of HB 130, HB 105, HB 163, as well as suggestions from the public. He handed out copies of the proposed committee substitute for HB 130. MR. CAMPBELL stated that the regulation process was considered a quasi-legislative process. The initial catalyst for regulations is the legislature, who draft statutes that then require regulations to implement. The agencies then draft regulations on which they are required to hold public hearings and take input. This is the first time that the public actually gets to see the proposed regulation. He said that other than this, there is very little other guidance for the agencies from the Administrative Procedures Act. The regulation is then signed into law by the Lieutenant Governor. Currently, this role of the Lt. Governor is purely ministerial and mandatory. He said that HB 130 attempts to make this a less mandatory action of the Lieutenant. Governor by giving them the ability to return a draft regulation to an agency for rewrite. He thought the Lt. Governor was a unique position in that he is not beholden to the agencies, nor can he be fired by the Governor. Thus, the goal would be to give authority to the Lieutenant Governor to return bad regulations to the agencies for rewrite. He added that HB 130 would involve the legislature's Regulation Review Committee in the process, prior to a regulation becoming law, so that they may offer suggestions to make it better. He said the proposed committee substitute clarifies some of the language on page 3, to make the intent of the bill clearer. He said that in part E line 12 and 13, it clarifies that the Lieutenant Governor may return a regulation to the agencies. He said they added wording to clarify they meant that the Lieutenant Governor may do this at any time in the drafting process to save wasted efforts in writing and review of the regulation. He also said they added a best interest finding, which helped to clarify the type of reasons for which the Lieutenant Governor may return a regulation to the agency. He wanted to comment that the term "best interest" was a legal definition with precise meaning. It was intended to show that the Lieutenant Governor had broad oversight abilities and a statewide responsibility to the people of Alaska. On page 4, they have added a section to the Administrative Procedures Act, section 215, which require an agency to consider substantive and scientific testimony and to create a record of the public comment. They must show as a matter of public record, whether they made use of a particular piece of public comment. On page 4, line 16, they deleted a couple of steps from the original draft and required the agencies, following public comment, to calculate the cost of compliance and to show there is an economically feasible way to comply with this regulation. This also must be a part of the public record. He said this amounted to the changes in the proposed committee substitute for HB 130 and that he would be willing to answer any questions. TAPE 95-21, SIDE A Number 137 CHAIR JAMES asked if there were any questions or comments from the committee. She said it was a fine presentation. She asked if anyone in the audience had any questions or comments. Hearing none, she said this bill would be referred to the House State Affairs subcommittee on regulation reform with other similar bills for an overall review of the issue. Chair James said that to give the committee an update, she was still trying to get an accounting of the actual costs of regulations and how the legislature could try and save expenses with a regulation reform bill. She thought the subcommittee would meet after she had gotten these figures in another week or two.