Legislature(2023 - 2024)DAVIS 106
05/09/2023 06:00 PM House WAYS & MEANS
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| Audio | Topic |
|---|---|
| Start | |
| HB190 | |
| SB107 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | SB 107 | TELECONFERENCED | |
| *+ | HB 190 | TELECONFERENCED | |
HB 190-ALASKA SUNSET COMMISSION
[Contains discussion of SB 9]
6:45:34 PM
CHAIR CARPENTER announced that the first order of business would
be HOUSE BILL NO. 190, "An Act establishing a violation for
hindering the Alaska Sunset Commission; relating to the duties
of the legislature; establishing the Alaska Sunset Commission to
review and make recommendations on discontinuation of or changes
to state entities; relating to the powers and duties of the
Alaska Sunset Commission; and providing for an effective date."
6:45:50 PM
The committee took an at-ease from 6:45 p.m. to 6:46 p.m.
6:46:18 PM
KENDRA BROUSSARD, Staff, Representative Ben Carpenter, Alaska
State Legislature, on behalf of the sponsor, the House Special
Committee on Ways and Means, of which Representative Carpenter
serves as chair, presented the sponsor statement [included in
the committee packet], which read as follows [original
punctuation provided]:
Alaska spends twice as much as other states on
government. There is not enough time or information
available to utilize the annual budget process to
ensure efficient spending, effective service delivery
and continual process improvement in state agencies.
The Executive Budget Act requires the Governor and his
agencies to use performance and financial data in its
budgeting process and to provide such information to
the legislature for its budget deliberations.
Nonetheless, the Executive Budget Act is not being
followed by the executive or the legislature as it
should. Data provided by executive departments is
insufficient for program evaluation, planning and
budgeting.
In addition, for the past ten years, the State Auditor
has produced performance review audits of state
agencies. Again, these resources are not being
utilized by state agencies or the legislature, and the
statute is sunsetting.
HB 190 aims to both provide usable data and impose
recourse into the review process. Adding an extensive
third-party review, and the real risk that an entity
of government will be eliminated by law, may be the
external disruption necessary to lead to leaner
government.
HB 190 "The Alaska Sunset Commission Act" will help
ensure adherence to performance requirements and
process improvement in the operation of our state
government. The bill establishes the Alaska Sunset
Commission under the Lieutenant Governor as an
independent and objective group charged with reviewing
each department by division in the state on a rotating
schedule.
The Commission will be comprised of seven individuals
from the private sector with financial, budget
analysis, accounting, operations management, and other
areas of expertise who will be appointed by the
governor (3), speaker of the house (2) and president
of the senate (2). Commissioners will have staggered
terms of five years, choose a chair, and will serve
without
compensation but commissioners will be entitled to per
diem and travel expenses authorized for boards and
commissions. The Commission may employ staff and hire
consultants as it determines necessary to perform its
duties.
Duties of the commission will be to determine whether
there is a public need for the continuation of the
entity and to make a recommendation to the legislature
to continue, discontinue, restructure, or transfer the
duties and programs of the entity to another entity.
The Commission will review the entities of one
department each year that will include adherence to
financial and performance requirements under the
Executive Budget Act, utilization of process
improvement, efficiency of operations, overlap with
other state entities, and the extent to which the
entity is making it difficult to do business in
Alaska.
The Commission will submit a report to the Governor
and Legislature within the first 10 days of
legislative session that includes a recommendation to
continue, discontinue, restructure, or transfer duties
to another entity.
Along with the submission of the report to the
legislature, the Commission will provide any
recommended statutory changes necessary to accomplish
the recommendations in the report to the Rules
Committees with requests to introduce the legislation.
If the legislature does not act on the Commission's
report, the entity subject of the report will be
sunset at the conclusion of the following fiscal year.
6:50:25 PM
MS. BROUSSARD, on behalf of the sponsor, the House Special
Committee on Ways and Means, gave the sectional analysis
[included in the committee packet], which read as follows
[original punctuation provided]:
Sections 1-5:
Amends the State Personnel Act to include the Alaska
Sunset Commission.
Section 1
Allows persons who hinder the work of the Alaska
Sunset Commission to be fined like those who may
hinder the work of the Legislative Audit and Budget
Committee.
Section 2
A person who has been convicted under Section 1 of
this Act cannot be appointed to state service unless a
waiver is granted by the commissioner of
administration.
Section 3
Makes public information that a state employee has
been dismissed or disciplined for a violation of
interference or failure to cooperate with the Alaska
Sunset Commission.
Section 4
Allows a state employee to be disciplined or dismissed
for failure to give full cooperation to the Alaska
Sunset Commission.
Section 5
Makes interference or failure to cooperate with the
Alaska Sunset Commission a matter of public concern.
Section 6
Amends the Public Record Disclosure Act to add the
Alaska Sunset Commission to the definition of "public
agency."
Section 7
Adds a new section of law to establish the Alaska
Sunset Commission under the Lieutenant Governor. The
Commission consists of seven public members appointed
by the Governor (3), Speaker (2), and Senate President
(2) for staggered five-year terms. Establishes the
qualifications of appointed members, selection of a
chair, and allows the Commission to employ staff and
hire consultants. Commissioners will receive per diem
and travel expenses.
Provides the powers and duties of the Commission,
including reviewing the activities of each state
entity subject to Commission review state entities and
make recommendations to the legislature.
Prior to the Commission's review of an entity each
state entity shall provide to the legislature a report
of the entity's evaluation of its adherence to the
criteria for the Commission's review under this Act.
Provides for a schedule of entities to be reviewed.
The entities are each of the entities of a one state
agency or the University of Alaska each year from 2024
through 2035.
Provides the criteria for review, including the
adherence to performance requirements set under the
Executive Budget Act, alternative methods for delivery
of services, organizational processes, efficiency with
which the entity operates, reorganization potential,
and the extent to which statutory changes are
necessary for the entity to meet the desired
improvements.
Requires the Commission to hold public hearings and
except public testimony.
Requires a report by the Commission following each
review of a state entity with a recommendation to the
legislature to continue, discontinue, restructure, or
transfer the duties and programs of the entity and a
recommendation on a winding-down period for the entity
to conclude its business or provide for a
restructuring plan. The commission shall include in
the report draft legislation to implement the
recommendations of the Commission with a request to
the rules committees to submit the legislation for
introduction.
Provides that if the recommendations of the Commission
are not implemented by law, the entity subject to
review will be sunset on June 30 of the fiscal year
following the review.
Provides definitions.
Section 8
Repeals statutes governing the disposition of
entities, statutes related to sunsetting performance
reviews.
Section 9
Repeals Performance Review State Law 2013 that is set
to sunset July 1, 2023.
Section 10
Makes Section 9 of this Act immediately effective.
6:54:21 PM
The committee took a brief at-ease.
6:54:43 PM
MS. BROUSSARD, on behalf of the sponsor, the House Special
Committee on Ways and Means, presented a PowerPoint, titled
"Texas Sunset Commission Overview" [included in the committee
packet]. She moved to slide 2 and slide 3, which read as
follows [original punctuation provided]:
The Texas Sunset shines a light on state agencies and
programs to see if they are still relevant in a
changing world. If the answer is yes, The Sunset
recommends improvements to make them more effective
and efficient. If the answer is no, the sunset
recommends abolishing the agency or transferring its
functions to another agency with related functions.
Learn how the Sunset process can have major impacts on
state government.
Sunset Staff Evaluation
o Sunset staff performs extensive research and
analysis to evaluate the need for, performance of, and
improvements to the agency under review.
Sunset Commission Staff
o Reviews agency's self-evaluation report
o Receives input from interested parties
o Evaluates agency and identifies problems
o Develops recommendations
o Publishes staff report
Public input is confidential
Sunset Commission Deliberation
o The Sunset Commission conducts a public hearing
to take testimony on the staff report and the agency
overall. The Sunset Commission conducts a second
meeting to vote on which changes to recommend to the
Texas Legislature.
MS. BROUSSARD continued to slide 4, which read as follows
[original punctuation provided]:
Public Hearings
o Sunset staff presents its reports and
recommendations
o Agency presents its response
o Sunset Commission hears public testimony and
receives written comments
o Sunset Commission meets again to consider and
vote on recommendations
Public Input is published on the website
Legislative Action
o The Texas Legislature considers Sunset's
recommendations and makes final decisions
Texas Legislature
o Sunset bill on an agency is drafted and filed
o Sunset bills go through normal legislative
process
o The Senate and the House conduct committee
hearings and debate the bill
o Bill passes or fails adoption
o Governor signs, vetoes or allows bill to become
law without signature
Public may participate in legislative process
6:57:25 PM
MS. BROUSSARD advanced to slide 5 and slide 6, which read as
follows [original punctuation provided]:
The Sunset Commission reviewed 19 state entities for
the 87thregular legislative session in 2021 and made
115 statutory recommendations to the Legislature based
on staff reports and public hearings. The Legislature
adopted 78 percent of these recommendations and added
other changes to further improve state government. The
Sunset Commission also adopted 114 management
directives to address operational concerns identified
during staff reviews. Together, these changes
significantly improved state government by:
The Sunset Commission reviewed 21 entities for the
88th Legislative Session, resulting in 235
recommendations to streamline state government while
enhancing services to our citizens. Generally, the
recommendations eliminate unnecessary regulations, and
improve accountability, align agencies' procedures
with best practices, and strengthen effective delivery
of services to Texans. Notably, the commission is
making several appropriative recommendations, which is
atypical for Sunset, to the House Appropriations and
Senate Finance committees to consider funding
increases for Texas Juvenile Justice Department to
increase capacity of juvenile justice facilities and
address chronic staff retention issues, and for Public
Utility Commission of Texas to improve oversight of
the electric and water utility industries. Other
recommendations include transferring the functions of
the Anatomical Board of the State of Texas to the
Texas Funeral Service Commission to improve regulation
of whole-body donation in Texas, and temporarily
attaching the State Board of Veterinary Medical
Examiners to the Texas Department of Licensing and
Regulation to provide the board with oversight,
guidance, and support.
6:58:46 PM
MS. BROUSSARD, in response to a request from Chair Carpenter,
skipped the presentation to slide 9 and slide 10, which read as
follows [original punctuation provided]:
The sunset process is a key legislative oversight tool
that significantly streamlined and improved Texas
government since it was created by the Texas
Legislature in 1977. Sunset promotes a culture of
continuous improvement in state government by
providing objective, nonpartisan public forum for
evaluating the need for state agencies and their
effectiveness, efficiency, and responsiveness to the
public
Changes made through the Sunset process demonstrate
its positive impact, with a proven track record of
reducing state agencies and programs, saving the state
money, and updating and improving state laws. Key
Sunset outcomes, highlighted in the textbox Sunset's
Impact Since 1977, illustrate Sunset's success
MS. BROUSSARD stated that slide 12 explains the sunset
provision's impact in Texas since 1977, which read as follows
[original punctuation provided]:
Streamlining Texas Government
42 Agencies and programs abolished
52 agencies and programs abolished and transferred
or consolidated
Saving Taxpayer money
$1 billion in state and federal savings and revenue
gains
Return of $18 for every $1 appropriated to the
Sunset Commission since 1985
Providing Effective Oversight
570 reviews of state agencies and programs conducted
80 percent of Sunset recommendations to the
Legislature have become state law since 2001
MS. BROUSSARD concluded on slide 13 by providing a webpage link
to Texas Sunset.
CHAIR CARPENTER added that members should visit the website and
understand what Texas is doing.
7:01:26 PM
SENATOR SHELLEY HUGHES, Alaska State Legislature, stated that
she is the sponsor of SB 9, which is the companion bill to HB
190. She expressed the belief that SB 9 was given a "courtesy
hearing" in the Senate because she is in the minority; however,
HB 9 "created a bit of a buzz" because the bill may be
beneficial to the state. She said that the Texas Sunset
Advisory Commission presented its program to the Senate, and she
expressed the opinion that from this explanation Texas's program
appears workable for Alaska. She listed the states which have
established sunset commissions, including Arizona, Arkansas,
Colorado, Delaware, Idaho, Minnesota, Texas, Vermont, and
Washington. For Alaska, she commended the state's auditor but
pointed out that much of the work "collects dust;" however, with
a commission, the legislature would be forced to take up the
issue. After Texas established a sunset commission 46 years
ago, she pointed out that it has had 80 percent of
recommendations taken up. She stated that Alaska's Fiscal
Policy Working Group has pointed out four parts to a sunset
plan: settling the permanent fund dividend (PFD) issue, setting
a spending cap, creating revenue, and creating reductions.
SENATOR HUGHES advised that a sunset commission would allow the
legislature to acquire full departmental information. She
clarified that the commission would not make decisions, the
legislature would; however, the commission would provide the
legislature with more information to make these decisions. She
said that the current state auditor's recommendations are
typically seen as apolitical. She explained that, over time,
such a commission could become part of the reduction element of
the fiscal plan [referenced above].
7:07:41 PM
REPRESENTATIVE GROH questioned the size of the Texas Sunset
Commission staff and budget.
SENATOR HUGHES expressed uncertainty and said she would follow
up with this information. She explained that HB 190 would set
up the commission with the needed staff. She argued that with
this commission the dollars put into state government would have
a better return. She expressed the opinion that, if the state
looks at a broad-based tax, a commission would be a wise
addition to a fiscal plan.
7:09:42 PM
CHAIR CARPENTER directed attention to the bill's fiscal note,
which explains that there would be five full-time employees in
fiscal year 2024 (FY24), and this number would stay the same in
the out years. He said the budget needed would be $1.1 million
in general fund dollars, and the fiscal note uses a static
assumption in the out years.
SENATOR HUGHES commented that for every dollar spent toward the
commission in Texas, the state saw a return of $18. She added
that if $1 million is invested in a commission the benefit could
be a state savings of $18 million.
7:11:10 PM
REPRESENTATIVE GROH asked if the commission is anticipated to be
in addition to, or in lieu of, the state's existing auditing
process.
SENATOR HUGHES answered that the commission would not remove the
state auditor, but there could be considerations on whether
certain duties of the auditor could be downsized and shifted to
the commission. She observed that the state's auditing team has
been conducting a performance audit for ten years. She
expressed the opinion that not much has materialized from this
audit. She reiterated that the commission would not replace the
state's auditor, rather, it would be in addition to the auditor.
CHAIR CARPENTER confirmed that the intention of HB 190 would not
be to diminish or replace the state auditor.
REPRESENTATIVE GROH thanked the bill sponsor for introducing the
legislation. He said that he is interested in finding
efficiencies and reductions, if possible.
7:12:50 PM
CHAIR CARPENTER announced that HB 190 was held over.
| Document Name | Date/Time | Subjects |
|---|---|---|
| House CS for CSSB 107 (O).pdf |
HW&M 5/9/2023 6:00:00 PM |
SB 107 |
| HB 190 v.B.PDF |
HW&M 5/9/2023 6:00:00 PM HW&M 1/24/2024 6:00:00 PM HW&M 1/31/2024 6:00:00 PM HW&M 2/14/2024 6:00:00 PM |
HB 190 |
| HB 190 - Sectional Analysis.pdf |
HW&M 5/9/2023 6:00:00 PM HW&M 1/24/2024 6:00:00 PM HW&M 1/31/2024 6:00:00 PM HW&M 2/14/2024 6:00:00 PM |
HB 190 |
| HB 190 - Sponsor Statement.pdf |
HW&M 5/9/2023 6:00:00 PM HW&M 1/24/2024 6:00:00 PM HW&M 1/31/2024 6:00:00 PM HW&M 2/14/2024 6:00:00 PM |
HB 190 |
| HB190-OOG-LTG -5-5-23 Fiscal Note.pdf |
HW&M 5/9/2023 6:00:00 PM |
HB 190 |
| CS for CS for SB 107--Explanation of changes.pdf |
HW&M 5/9/2023 6:00:00 PM |
SB 107 |
| Texas Sunset Commission Overview.pdf |
HW&M 5/9/2023 6:00:00 PM |
HB 190 |