SENATE BILL NO. 211 "An Act relating to the publishing and furnishing of certain public notices regarding regulations or rules of certain state agencies; relating to distribution of the Alaska Administrative Code, Alaska Administrative Register, and supplements to the code or register; and providing for an effective date." This was the first hearing for this bill in the Senate Finance Committee. CRAIG TILLERY, Assistant Attorney General, Environmental Section, Civil Division (Anchorage), Department of Law, testified via teleconference from Anchorage and informed the Committee that the intent of this legislation is to improve the public notice process pertaining to State regulatory change notices and to reduce costs to the State through the elimination of unnecessary action, the use of the Internet where appropriate, and the allowance "for briefer, more easily understood notices" by changing Sections 23 and 24 of the Alaska Administrative Procedures Act. He explained that the briefer notices, while containing pertinent information such as what regulation is being changed and how to obtain more information regarding the change is anticipated to reduce the advertising content by approximately 75 percent. He asserted that these changes would make the advertisement more noticeable and more easily understood, and that directing people to a phone number or Internet site would enable people to acquire more detailed information than is currently required by statute. He stressed that this legislation would not prohibit a State agency from advertising a more detailed notice were a situation to require it. Mr. Tillery mentioned that this concept has been considered for numerous years and that approximately six years prior, similar legislation had been introduced. He informed that the continuing growth and availability of the Internet has allowed this legislation to become appropriate. Mr. Tillery continued that, "while limited in scope, but a significant departure from what is currently in statute" is language that would allow some agencies to not advertise certain notices in newspapers as, he shared that upon review, certain notices have been determined to be of disinterest to the general public but are rather of a technical nature and of more interest to individuals who have easy access to the Internet and typically receive their notices in that manner or through trade associations or mailing lists. He noted that the identified regulations are identified in Sections 1, 2, 10, 11, 12,13,16,19,20,26, and 27. Mr. Tillery noted that, thirdly, the bill would allow agencies to advertise notices in one newspaper rather than three as currently required or via the Internet or through mailings. Lastly, he stated, the legislation would eliminate the requirement for the State to provide copies and updates of the Alaska Administrative Code to all municipalities or local governments. He stated that many local governments have indicated that these copies are not necessary and that access to the information via the Internet would be adequate. Co-Chair Green surmised the purpose of the legislation is to streamline the State's noticing system to align with today's communication environment. Mr. Tillery agreed. MARK DAVIS, Director, Division of Banking, Securities & Corporations, Department of Community and Economic Development, testified via teleconference from Anchorage and stated that this bill would allow proposed changes in regulations for banking, corporations, and securities to be noticed in a simplified format in a newspaper and/or by electronic means. He continued that this would allow cost savings in addition to an improved method of notice to interested parties, as; he opined those individuals are Internet users and are familiar with electronic communication. He stated that proxy programs issued through the Division would be addressed by language allowing the Division to use whatever method it deems necessary or reasonable. Senator Taylor commented that fiscal note #2 from the Office of Management and Budget indicates that the Department of Community and Economic Development would save approximately $258,000 by the implementation of this legislation as the result of newspaper advertising savings. He voiced appreciation for the efforts put forth on this legislation and noted the lack of opposition to the legislation from the newspaper industry. Co-chair Green mentioned that a similar bill is advancing in the House of Representatives. She commented that newspapers are using the Internet to advance their product, and she opined that perhaps the newspaper industry is coming "to the realization that the Internet is the thing of today." Senator Olson voiced concern that Internet access is limited in rural Alaska and therefore, he inquired how the changes in newspaper notices would affect the dissemination of information in those areas. Mr. Davis responded that typically those areas do not currently receive these newspaper notices unless a change specifically affects the area. He noted that the three newspapers that would be affected by this legislation would be those serving Anchorage, Fairbanks and Juneau, or occasionally the Alaska Journal of Commerce. He reiterated that this legislation would not prevent notices if deemed necessary in those areas, and that, while Internet access might not be available in all communities; he noted that not all communities receive a newspaper. Senator Olson argued that newspapers are available in all communities as they are received via the mail. However, he stated that Internet access is only available at schools or clinics, which are not places that someone would ordinarily go to read regulations. Co-Chair Green ordered the bill HELD in Committee.