HSTA - 03/18/95 HB 163 - COMPLIANCE COST ESTIMATES REQUIRED Number 386 ROD MOURANT, Administrative Assistant to Representative Pete Kott, presented a blank committee substitute work draft for HB 163, 9-LS0661/C dated 3/16/95. He reported the only change appears on page 2, lines 5 through 9, precluding an agency which has prepared a cost compliance estimate in good faith from being challenged in court. Draft C was prepared based on concerns raised by Representative Porter. Number 416 DEBORAH BEHR, Regulations Attorney for Department of Law, stated the "good faith" provision to protect agencies from lawsuits is very valuable, but it could create lawsuits unless the bill prohibits private parties from suing. She expressed concern that "costs" are not defined in the bill; it is unclear whether it includes indirect costs, overhead, and private costs to the customer. She prefers the "example" choice in the previous bill. She added the Boards of Fisheries and Game should possibly be excluded from being sued by private parties if the cost of state government is to be cut. Number 466 MS. BEHR referred to page 2, line 3, saying it is too open-ended and invites court suits. Number 472 REPRESENTATIVE ROBINSON asked Ms. Behr if she had considered how to define "costs." MS. BEHR said she would talk to the Office of Management and Budget, and work with the sponsor. She suggested the sponsor speak to the legislative auditor also. REPRESENTATIVE ROBINSON asked about also exempting the State Board of Education. MS. BEHR said she did not feel as strongly about the Board of Education because they can screen regulations before they go out for public notice, whereas the Boards of Fish and Game have to give public notice of every proposal. REPRESENTATIVE ROBINSON asked where an exemption for the Boards of Fish and Game would fit in the bill. MS. BEHR said a new Section (c) would have to be added reading "for the purposes of this section, `State Agency' does not include the Board of Fish and the Board of Game." Number 500 CHAIR JAMES stated she would like to move this bill on to the Finance Committee with a request for the sponsor to address these legal concerns. She does not want the State Affairs Committee to appear neglectful in addressing these legal issues, so she wants assurance from the sponsor of HB 163 that appropriate amendments will be presented to the Finance Committee. Number 535 MR. MOURANT noted the concerns just expressed by Ms. Behr were new to him. He added her concerns do deal with financial issues, and he will certainly call them to the attention of the Finance Committee and work with Departments of Law, Management and Budget, and the co-sponsors of HB 163 in adopting appropriate changes. Number 535 REPRESENTATIVE ROBINSON said she strongly wants the sponsor to exempt the Boards of Fish and Game and to include a definition of the cost of compliance. She asked if the sponsor could do a sponsor substitute including these changes. Number 576 CHAIR JAMES said she did not recommend doing a sponsor substitute. Number 576 REPRESENTATIVE IVAN said he felt comfortable the proposed changes would be addressed in the Finance Committee. He moved to accept the CS, version C, as the working document. There were no objections. REPRESENTATIVE IVAN made a motion to move CS HB 163(STA) from committee with individual recommendations and attached fiscal note, with the understanding that concerns brought forth by the State Affairs Committee would be addressed at the next committee of referral. There were no objections; therefore CSHB 163(STA) was moved out of committee. Number 600 CHAIR JAMES called the meeting back to order after a short break.