Legislature(2007 - 2008)HOUSE FINANCE 519

04/11/2008 08:30 AM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 231 LOW-INCOME HOUSING; HOMELESSNESS TELECONFERENCED
Moved HCS CSSB 231(FIN) Out of Committee
+= SB 218 CHILD SAFETY SEATS & SEAT BELTS TELECONFERENCED
Moved Out of Committee
+= SB 120 UNEMPLOYMENT COMP: BENEFITS/RECORDS TELECONFERENCED
Moved Out of Committee
+= SB 259 EFFECTIVE DATE: MEDICAL ASSISTANCE LAWS TELECONFERENCED
Moved Out of Committee
+= SB 201 PUBLIC FINANCE WEBSITE TELECONFERENCED
Moved Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
11:14:53 AM                                                                                                                   
                                                                                                                                
CS FOR SENATE BILL NO. 201(FIN)                                                                                               
                                                                                                                                
     An Act  relating to  the establishment  and maintenance                                                                    
     of  an   Internet  website  providing   public  finance                                                                    
     information;  and  identifying  the information  to  be                                                                    
     available on the Internet website.                                                                                         
                                                                                                                                
11:15:06 AM                                                                                                                   
                                                                                                                                
MICHELLE   SYDEMAN,   STAFF,  SENATOR   BILL   WIELECHOWSKI,                                                                    
explained the intent  of SB 201, the  Alaska Open Government                                                                    
Act, to mandate creation of  a free, searchable website that                                                                    
provides Alaskans  with easy access to  detailed information                                                                    
on State spending.   She pointed out that  such websites are                                                                    
happening  across  the country.    In  2006, President  Bush                                                                    
signed the  Federal Funding Accountability  and Transparency                                                                    
Act.   The Act  calls for creation  of a  searchable website                                                                    
for federal contracts  and grants of more  than $25 thousand                                                                    
dollars.   Ms.  Sydeman  reported that  the legislation  had                                                                    
been introduced years ago by  a bipartisan team of four U.S.                                                                    
senators, including John McCain and Barak Obama.                                                                                
                                                                                                                                
She  added,  real  accountability and  good  decision-making                                                                    
requires an  informed public with  access to  information on                                                                    
government spending.   The Governor  endorses the bill.   SB
201  places the  requirement for  free, publicly  searchable                                                                    
database in statute,  so that all future  governors show the                                                                    
same commitment to transparency and accountability.                                                                             
                                                                                                                                
Ms. Sydeman maintained the bill  is good public policy as it                                                                    
provides  guidance as  to  the type  of  information that  a                                                                    
public finance website  should contain.  The  bill calls for                                                                    
inclusion  of information  that will  provide a  context for                                                                    
the lay  person regarding daily spending  expenditures.  The                                                                    
fiscal note is zero because  it can be accomplished by using                                                                    
the  existing  webmasters  and finance  staff.    She  urged                                                                    
support for the bill.                                                                                                           
                                                                                                                                
11:18:44 AM                                                                                                                   
                                                                                                                                
Representative   Thomas   referenced   the   title   "public                                                                    
finance"; he  wondered if it  could open-up  the possibility                                                                    
of  public financing  for elections.   Ms.  Sydeman had  not                                                                    
heard of anyone discussing  or considering that possibility;                                                                    
she  added,  Senator  Wielechowski  would  not  support  it.                                                                    
Representative Thomas worried that  it could come forward as                                                                    
an  amendment  on  the House  floor.    Representative  Gara                                                                    
believed that any  language such as that would  not pass the                                                                    
House floor.                                                                                                                    
                                                                                                                                
Representative  Hawker  was  not convinced  that  he  should                                                                    
support   the  bill.     Crossing   the  line   and  forcing                                                                    
disclosures often does not  mesh with statewide regulations.                                                                    
He pointed  out that the  State is  being asked to  create a                                                                    
new type  of information and accounting  reporting system on                                                                    
information given in isolation  without context.  He worried                                                                    
that adopting the change would  not be good; clarifying that                                                                    
it becomes a  "professional issue" for him.   He proposed an                                                                    
alternative,  requesting  that  the Department  determine  a                                                                    
better  "cap stone"  index for  the  State system  currently                                                                    
used.                                                                                                                           
                                                                                                                                
11:23:27 AM                                                                                                                   
                                                                                                                                
Ms. Sydeman advised that the  Senate Finance Committee (SFC)                                                                    
did  determine a  number of  items  that are  clear for  the                                                                    
public  to understand  & determined  what the  public should                                                                    
know from State  accountants to help put  the State spending                                                                    
in context.   Nothing  has been  duplicated in  the proposed                                                                    
system and there are no risks associated with the proposal.                                                                     
                                                                                                                                
Representative Hawker argued that  once the integrity of the                                                                    
document  is violated  by removing  it out  of context,  the                                                                    
document then no longer carries  the authority or is part of                                                                    
the audit.                                                                                                                      
                                                                                                                                
Representative Gara  advised that  Sections 2 &  3, describe                                                                    
the  information  that  should  be  made  available  on  the                                                                    
website.     He  understood  that  information,   the  State                                                                    
currently  prepares.   Ms.  Sydeman  said  it is  and  could                                                                    
automatically be transferred to  the website through the new                                                                    
accounting system.   There would be no  additional costs for                                                                    
doing that.                                                                                                                     
                                                                                                                                
11:26:28 AM                                                                                                                   
                                                                                                                                
Representative Hawker clarified  that the Administration has                                                                    
already  undertaken  an  effort in  that  direction  without                                                                    
making it a statutory mandate.   When in statute, there is a                                                                    
benchmark, which  could be  taken to  Court.   He maintained                                                                    
that the proposed change would not  be good for the State of                                                                    
Alaska.   He  recommended a  professional evaluation  of the                                                                    
language being proposed.                                                                                                        
                                                                                                                                
CHRIS NELSON, ALASKANS FOR  TAX REFORM, ANCHORAGE, testified                                                                    
via  teleconference,  spoke  in  favor  of  the  bill.    He                                                                    
explained that it is part  of an effort happening nationally                                                                    
to provide greater  public access to information.   He noted                                                                    
that he had researched  legislative spending extensively and                                                                    
that  information is  difficult  to find.   The  legislation                                                                    
will organize  the information and  make it accessible.   He                                                                    
commended  the Legislature  for  its  openness, but  worried                                                                    
about  future legislatures.   He  urged the  bill pass  from                                                                    
Committee.                                                                                                                      
                                                                                                                                
11:31:09 AM                                                                                                                   
                                                                                                                                
KIM GARNERO,  DIRECTOR, DIVISION  OF FINANCE,  DEPARTMENT OF                                                                    
ADMINISTRATION,   DIRECTOR,   added  comments   to   address                                                                    
Representative  Hawker's concerns.    She  pointed out  that                                                                    
Senator Wielechowski's  office had  worked closely  with the                                                                    
Department  to identify  items within  the financial  report                                                                    
that would  be of interest  to Alaskans and that  they could                                                                    
be  lifted from  a  website without  misleading the  public.                                                                    
She  added that  the information  will provide  some context                                                                    
for the public.                                                                                                                 
                                                                                                                                
Representative Gara pointed out  that all the information is                                                                    
definable and currently in print.   He stated that a concern                                                                    
regarding lawsuit filings was mute.                                                                                             
                                                                                                                                
Representative Kelly referenced  information provided by the                                                                    
Department,  which  the   Administration  does  not  believe                                                                    
should be  necessary codified in  statute.  He asked  if the                                                                    
Administration  supports  the   legislation.    Ms.  Sydeman                                                                    
responded   that  the   Governor   has   indicated  to   her                                                                    
personally,  she  supports  placing  it  in  statute.    Ms.                                                                    
Garnero had not yet received that information to date.                                                                          
                                                                                                                                
                                                                                                                                
AT EASE:       11:35:39 AM                                                                                                    
RECONVENE:          11:37:26 AM                                                                                               
                                                                                                                                
                                                                                                                                
Representative  Hawker  MOVED to  ADOPT  Amendment  1.   The                                                                    
amendment was  drafted to  Page 1,  Line 7,  following SHORT                                                                    
TITLE:                                                                                                                          
                                                                                                                                
     Delete "This Act  may be known as  the Alaska Open                                                                         
     Government Act  and insert "This  Act may be known                                                                         
     as the  Alaska Clear  and Transparent  Open Access                                                                         
     to Alaskan State  Government Financing for Dummies                                                                         
     Act."                                                                                                                      
                                                                                                                                
Vice-Chair Stoltze OBJECTED for discussion purposes.                                                                            
                                                                                                                                
Representative  Hawker  offered  the  amendment  because  he                                                                    
observed  there  are  better   ways  to  provide  access  to                                                                    
existing data.                                                                                                                  
                                                                                                                                
Vice-Chair Stoltze cautioned against  using "dummies" in the                                                                    
title.  Representative  Hawker suspected copyright violation                                                                    
would  prevail since  it is  a trademark  name; he  WITHDREW                                                                    
Amendment 1.                                                                                                                    
                                                                                                                                
11:41:09 AM                                                                                                                   
                                                                                                                                
Co-Chair Meyer  highlighted the zero  note submitted  by the                                                                    
Department of Administration.                                                                                                   
                                                                                                                                
Representative Hawker  disagreed with  offering a  zero note                                                                    
when the Department is required  to write a cross-referenced                                                                    
data system.   He  did not believe  that the  proposed scope                                                                    
could be accomplished with no  further funding.  Ms. Garnero                                                                    
responded   that  the   zero  note   was  predicated   on  a                                                                    
presentation  using Microsoft  Excel.   She  agreed that  if                                                                    
they moved into a different  type technology, the note would                                                                    
not  be zero.    She mentioned  the  Alaska Data  Enterprise                                                                    
Reporting  System is  currently being  built to  replace the                                                                    
now used twenty-there  year old system.   The data warehouse                                                                    
has  made   the  Department  able  to   generate  the  excel                                                                    
spreadsheet.                                                                                                                    
                                                                                                                                
Representative Hawker reiterated  that the language proposed                                                                    
in  the  bill does  not  take  the  State in  the  direction                                                                    
referred to by the Department.                                                                                                  
                                                                                                                                
Representative  Kelly worried  if  the  process could  drive                                                                    
private  business away  from  continuing  business with  the                                                                    
State  of  Alaska  because  of  the  amount  of  information                                                                    
required.  He recommended adding  a sunset date to track the                                                                    
development.                                                                                                                    
                                                                                                                                
Representative Gara  interjected that  Page 4  describes the                                                                    
confidentiality  statement  and  that  nothing  confidential                                                                    
would be allowed on the website.                                                                                                
                                                                                                                                
11:44:56 AM                                                                                                                   
                                                                                                                                
Vice-Chair  Stoltze MOVED  to REPORT  CSSB  201(FIN) out  of                                                                    
Committee  with  individual  recommendations  and  with  the                                                                    
accompanying zero note.                                                                                                         
                                                                                                                                
Representative Hawker OBJECTED.                                                                                                 
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:      Nelson,  Stoltze,   Thomas,  Crawford,  Gara,                                                                    
               Joule, Meyer                                                                                                     
OPPOSED:       Hawker, Kelly                                                                                                    
                                                                                                                                
Representative Chenault  and Representative Foster  were not                                                                    
present for the vote.                                                                                                           
                                                                                                                                
The MOTION FAILED (7-2).                                                                                                        
                                                                                                                                
CS  SB 201(FIN)  was REPORTED  out of  Committee with  a "no                                                                    
recommendation" and with  zero note #1 by  the Department of                                                                    
Administration.                                                                                                                 

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