Legislature(2021 - 2022)SENATE FINANCE 532

04/20/2021 09:00 AM Senate FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 10 FREE/REDUCED TUITION FOR ESSENTIAL WORKER TELECONFERENCED
<Bill Hearing Rescheduled to 04/21/2021>
+ SB 101 ADVISORY COMMISSION ON FEDERAL MGT AREAS TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
-- <Time Limit May Be Set> --
+ SB 25 STATE GOV'T FINANCES: WEBSITE TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
-- <Time Limit May Be Set> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                 SENATE FINANCE COMMITTEE                                                                                       
                      April 20, 2021                                                                                            
                         9:02 a.m.                                                                                              
                                                                                                                                
9:02:08 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Bishop called the  Senate Finance Committee meeting                                                                    
to order at 9:02 a.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Click Bishop, Co-Chair                                                                                                  
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Lyman Hoffman                                                                                                           
Senator Donny Olson                                                                                                             
Senator Bill Wielechowski                                                                                                       
Senator David Wilson                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Natasha von Imhof                                                                                                       
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Kris  Curtis,   Legislative  Auditor,  Alaska   Division  of                                                                    
Legislative   Audit;  Nate   Graham,  Staff,   Senator  Bill                                                                    
Wielechowski.                                                                                                                   
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Betty Tangeman,  Staff, Senator  Josh Revak;  Charles McKee,                                                                    
Self, Anchorage; Michael  Chambers, Self, Anchorage; Deantha                                                                    
Skibinski, Alaska Miners  Association, Anchorage; Ray Kreig,                                                                    
Self,  Anchorage;   Hans  Zigmund,  Director,   Division  of                                                                    
Finance,  Department of  Administration;  Ryan McKee,  State                                                                    
Director, Americans  for Prosperity, Wasilla;  Portia Noble,                                                                    
Self, Anchorage.                                                                                                                
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 25     STATE GOV'T FINANCES: WEBSITE                                                                                         
                                                                                                                                
          SB 25 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
SB 101    ADVISORY COMMISSION ON FEDERAL MGT AREAS                                                                              
                                                                                                                                
          SB 101 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
                                                                                                                                
Co-Chair Bishop reviewed the agenda for the meeting.                                                                            
                                                                                                                                
SENATE BILL NO. 101                                                                                                           
                                                                                                                                
     "An  Act   extending  the   termination  date   of  the                                                                    
     Citizens'  Advisory  Commission on  Federal  Management                                                                    
     Areas in Alaska; and providing for an effective date."                                                                     
                                                                                                                                
9:03:36 AM                                                                                                                    
                                                                                                                                
BETTY   TANGEMAN,    STAFF,   SENATOR   JOSH    REVAK   (via                                                                    
teleconference), introduced the legislation. She read the                                                                       
sponsor statement (copy on file):                                                                                               
                                                                                                                                
     SB  101  is  an  important affirmation  by  the  Alaska                                                                    
     Legislature  of the  compelling  need  to maintain  the                                                                    
     vital efforts  of the Citizens' Advisory  Commission on                                                                    
     Federal Management  Areas in Alaska (CACFA).  This bill                                                                    
     extends  this commission's  sunset date  from June  30,                                                                    
     2021 to June 30, 2029.                                                                                                     
                                                                                                                                
     CACFA  was first  established  in  1981, shortly  after                                                                    
     Congress  passed  comprehensive  legislation  governing                                                                    
     all  federal  public lands  in  the  state, the  Alaska                                                                    
     National  Interest  Lands  Conservation  Act  (ANILCA).                                                                    
     Under  the  balanced  compromise  Congress  crafted  in                                                                    
     ANILCA, 104+million  acres were set-aside  in permanent                                                                    
     federal ownership as  conservation system units,-(e.g.,                                                                    
     parks, preserves,  wildlife refuges,  wilderness areas)                                                                    
     with  many  unique  provisions  enabling  Alaskan's  to                                                                    
     maintain    their     traditions    and    livelihoods,                                                                    
     accommodating  the   States  and   ANCSA  corporations'                                                                    
     social and  economic needs,  safeguarding opportunities                                                                    
     for responsible resource  development, and facilitating                                                                    
     improvements    in     transportation    and    utility                                                                    
     infrastructure.      Those     provisions      included                                                                    
     opportunities  for  the  State,  its  communities,  and                                                                    
     rural  populations to  access  and develop  inholdings,                                                                    
     allotments, and adjacent  lands; construct and maintain                                                                    
     transportation  and  utility systems;  access,  manage,                                                                    
     and  use  State  lands   and  waterways;  retain  state                                                                    
     management  of  fish  and  wildlife;  and  provide  for                                                                    
     access  and  necessary  facilities  on  federal  lands.                                                                    
     Adding in  the Alaska  Statehood Act and  Alaska Native                                                                    
     Claims  Settlement  Act,  most  Alaskans  and  most  of                                                                    
     Alaska  are regulated  under  an  extremely unique  and                                                                    
     complex legislative web.                                                                                                   
                                                                                                                                
     CACFA's  mission  is  helping Alaskans  navigate  these                                                                    
     complex  rules and  regulations and  work with  federal                                                                    
     agencies to ensure  Congressional intent is implemented                                                                    
     with   respect  to   their  interests.   As  nationwide                                                                    
     directives  frequently ignore  the  Alaska context  and                                                                    
     balanced  requirements in  ANILCA,  CACFA  serves as  a                                                                    
     vigilant  and knowledgeable  resource  for Alaskans  to                                                                    
     defend the  rights and  protections they  were promised                                                                    
     as stakeholders.  While the State's ANILCA  program and                                                                    
     CACFA both  monitor federal  actions, the  State cannot                                                                    
     represent   individuals/businesses  and   CACFA  cannot                                                                    
     defend  State agencies'  authorities. As  institutional                                                                    
     memory and  expertise is lost, and  as agency decisions                                                                    
     that  revise  our  history  and  upend  our  reasonable                                                                    
     expectations  are deferred  to by  the courts,  federal                                                                    
     managers  have little  incentive  to uphold  Congress's                                                                    
     promises  to  Alaskans.  The  Sturgeon  v  Frost,  U.S.                                                                    
     Supreme  Court  case,  is  an   example  of  a  private                                                                    
     citizen's  $1.5  million  battle against  federal  laws                                                                    
     being enforced on state  land. More recently, President                                                                    
     Biden  issued  an  Executive Order  directing  that  at                                                                    
     least  30%  of  our  lands  and  waters  be  placed  in                                                                    
     permanent protection status by  2030 (30 by 30), placed                                                                    
     a  moratorium on  new  oil and  gas  leases and  halted                                                                    
     leasing in  ANWR's 1002 area. These  examples emphasize                                                                    
     the need for vigilance to  fight against the erosion of                                                                    
     ANILCA protections  by uninformed federal  managers and                                                                    
     politicians.                                                                                                               
                                                                                                                                
     With federal  land management policies  increasingly at                                                                    
     odds  with  Alaska's  desire  to  access,  manage,  and                                                                    
     sustainably develop its natural  resources, CACFA is an                                                                    
     essential tool  in ensuring Alaskans have  a strong and                                                                    
     powerful voice. Over the 62  years since statehood, the                                                                    
     federal government has consistently  failed to keep its                                                                    
     promises to  honor the Alaska  way of life. Now  is not                                                                    
     the time to  allow CACFA to sunset. I urge  you to join                                                                    
     me in allowing CACFA  to continue its important mission                                                                    
     by passing SB 101.                                                                                                         
                                                                                                                                
9:06:33 AM                                                                                                                    
                                                                                                                                
KRIS  CURTIS,   LEGISLATIVE  AUDITOR,  ALASKA   DIVISION  OF                                                                    
LEGISLATIVE AUDIT, stated  that there was an  audit on CACFA                                                                    
dated  April 2020  (copy on  file). She  explained that  the                                                                    
purpose  of the  sunset  audit was  to  determine whether  a                                                                    
board or  commission was serving  the public's  interest and                                                                    
whether  it should  be extended.  The commission  was active                                                                    
from  1981  until  1999  at  which  point  its  funding  was                                                                    
eliminated.  The commission  was reestablished  in 2007  and                                                                    
operated  from  FY 08  through  FY  17  at which  point  its                                                                    
funding was again eliminated. Federal  management of land in                                                                    
Alaska  had been  widely criticized.  Concerns with  federal                                                                    
overreach   and   unfulfilled   commitments   led   to   the                                                                    
reestablishment of  CACFA. The commission  was reestablished                                                                    
to  advocate  on  behalf  of  Alaska's  citizens  on  issues                                                                    
related to federal management of land in Alaska.                                                                                
                                                                                                                                
Ms.  Curtis indicated  report conclusions  began on  page 7.                                                                    
She   pointed  out   that  the   prior   sunset  audit   was                                                                    
February 2015. The current sunset  audit reviewed the period                                                                    
from February 2015 through June 2017.                                                                                           
                                                                                                                                
Ms.  Curtis reported  that beginning  in FY  17 funding  for                                                                    
CACFA had  not been a  priority - not a  consistent priority                                                                    
for  the  governor or  the  legislature.  Both entities  had                                                                    
funded the  commission at different  times. Funding  for the                                                                    
commission  in FY  17 was  approved by  the legislature  but                                                                    
vetoed by  the governor. Funding  for the commission  for FY                                                                    
18 and FY  19 was not included in the  governor's request or                                                                    
in  the  final  operating bills.  The  legislature  approved                                                                    
funding  in  FY  20  but   the  governor  again  vetoed  the                                                                    
appropriation.   The  governor's   amended  FY 21   included                                                                    
funding  for the  commission, but  it  was not  part of  the                                                                    
operating bill.                                                                                                                 
                                                                                                                                
Ms. Curtis continued that overall,  the audit concluded that                                                                    
from  the date  of the  prior sunset  through June  2017 the                                                                    
commission  operated effectively  and did  not significantly                                                                    
duplicate the  activities of other entities.  The audit also                                                                    
concluded that  there was  a continued  public need  for the                                                                    
commission and  recommended an  8-year extension.  The audit                                                                    
found  that when  CACFA was  active, the  executive director                                                                    
monitored the  federal register for new  information related                                                                    
to CACFA's  mission, provided comments on  proposed changes,                                                                    
and  brought   relevant  information  to   the  commission's                                                                    
attention. If  determined necessary,  CACFFA sent  a comment                                                                    
letter  to the  applicable federal  agency. Comment  letters                                                                    
formally   summarized   CACFA's   concerns   with   proposed                                                                    
management plans  and changes to  regulations and  laws. The                                                                    
commission  sent 14  comment letters  and testified  4 times                                                                    
from February  2015 through  August 2016  - indicative  of a                                                                    
very active commission. Letters  and testimony were directed                                                                    
to federal agencies and congressional subcommittees.                                                                            
                                                                                                                                
Ms.  Curtis added  that CACFA  invited  federal agencies  to                                                                    
present information  and discuss federal plans  and policies                                                                    
via  panel  discussions  to  help  facilitate  communication                                                                    
between the  public, state,  and federal  agencies. Meetings                                                                    
generally  lasted from  1 to  2 days  and included  multiple                                                                    
presentations   from    individuals   representing   federal                                                                    
agencies such as  the U.S. National Park  Service, U.S. Fish                                                                    
and  Wildlife,  the Bureau  of  Land  Management, and  state                                                                    
agencies like the Department of  Natural Resources (DNR) and                                                                    
the Department of Fish and Game (DFG).                                                                                          
                                                                                                                                
Ms. Curtis continued that per  the CACFA executive director,                                                                    
the director  and staff  assisted between  15 and  20 Alaska                                                                    
citizens  at a  time  with issues  related  to federal  land                                                                    
management  by helping  write  complaints  and requests  for                                                                    
information  and  by  guiding citizens  to  the  appropriate                                                                    
agencies. In addition, staff  accompanied citizens to permit                                                                    
and   informational   meetings   to  provide   support   and                                                                    
expertise.   The  report   made   no  recommendations.   She                                                                    
indicated that responses to the  audit began on page 21. The                                                                    
DNR  commissioner  concurred  with  the  recommended  8-year                                                                    
extension.                                                                                                                      
                                                                                                                                
9:10:38 AM                                                                                                                    
                                                                                                                                
Senator   Olson   had   heard   Ms.   Curtis   discuss   the                                                                    
effectiveness  of the  commission  while it  was funded.  He                                                                    
asked her to provide an  example of a significant effect the                                                                    
commission had regarding federal overreach.                                                                                     
                                                                                                                                
Ms. Curtis  replied that one  thing that impressed  her most                                                                    
about  the commission  was  how it  advocated  on behalf  of                                                                    
citizens.  The complexity  of the  Alaska National  Interest                                                                    
Lands Conservation  Act (ANILCA),  the Alaska  Native Claims                                                                    
Settlement  Act (ANCSA),  and the  Federal Land  Act, was  a                                                                    
challenge  for  the  average citizen  to  wade  through  and                                                                    
decipher.  The  commission  was   advocating  on  behalf  of                                                                    
Alaska's citizens. She was extremely  impressed with how the                                                                    
commission  was hands  on with  the  average person  needing                                                                    
assistance.                                                                                                                     
                                                                                                                                
Co-Chair Bishop  indicated someone  from DNR was  online and                                                                    
available for questions.                                                                                                        
                                                                                                                                
Senator Olson  commented that in  looking at  the commission                                                                    
make up there  was a lack of ANCSA  representation. He asked                                                                    
why more native corporation folks were not involved.                                                                            
                                                                                                                                
Ms. Curtis responded  that the commission was  composed of 6                                                                    
appointees  of  the  governor,  3  from  each  body  of  the                                                                    
legislature including  1 House  member and 1  Senate member.                                                                    
The audit did not investigate the makeup of the board.                                                                          
                                                                                                                                
9:13:07 AM                                                                                                                    
                                                                                                                                
Co-Chair Bishop OPENED public testimony.                                                                                        
                                                                                                                                
CHARLES   MCKEE,  SELF,   ANCHORAGE  (via   teleconference),                                                                    
testified in support of the  bill but did not understand how                                                                    
the legislation would be  funded without additional resource                                                                    
extraction.                                                                                                                     
                                                                                                                                
9:16:39 AM                                                                                                                    
                                                                                                                                
MICHAEL  CHAMBERS,  SELF,  ANCHORAGE  (via  teleconference),                                                                    
testified in support of SB 101  and the funding of CACFA. He                                                                    
was aware the  commission operated on $285,000,  the bulk of                                                                    
which  went  to  the  intellectual property  of  the  lawyer                                                                    
involved in the case. He  referred to the Alaska State Lands                                                                    
Advisory Group (ASLAG) report which  could be found on DNR's                                                                    
website and  recommended that members  read it.  The 53-page                                                                    
report was put  together under the chairmanship  of Mr. Mead                                                                    
Treadwell   regarding   the   violations  of   the   federal                                                                    
government around  ANILCA. He reported that  since 1980, the                                                                    
federal government  had violated  ANILCA in  accordance with                                                                    
the State of  Alaska over 2000 times.  The state's sovereign                                                                    
nature had  been violated several times,  and the commission                                                                    
stood in support of recognizing  the violations and bringing                                                                    
them  to a  public format.  He thought  it was  important to                                                                    
understand  and recognize  that in  the ANILCA  report there                                                                    
was a "no  more" clause. He opined that  having CACFA intact                                                                    
was essential to protecting Alaska's sovereign rights.                                                                          
                                                                                                                                
9:18:57 AM                                                                                                                    
                                                                                                                                
DEANTHA  SKIBINSKI,  ALASKA  MINERS  ASSOCIATION,  ANCHORAGE                                                                    
(via  teleconference), spoke  in  support  of extending  the                                                                    
sunset  of CACFA.  The commission  was  initially created  a                                                                    
year after  the passage of  ANILCA to give Alaskans  a voice                                                                    
in navigating the complex land management issues in Alaska.                                                                     
                                                                                                                                
Ms. Skibinski  continued that  the state's  largest landlord                                                                    
was not  the state. It  was the U.S. Department  of Interior                                                                    
with large swaths  owned and managed by  the U.S. Department                                                                    
of Agriculture and  the U.S. Forest Service.  She noted that                                                                    
there was a secretarial order  signed on the previous Friday                                                                    
by  Interior Secretary  Holland that  revoked the  following                                                                    
previous  secretarial  orders   on  the  National  Petroleum                                                                    
Reserve   Alaska  (NPRA),   American  Energy   Independence,                                                                    
America  First Offshore  Energy  Strategy, and  streamlining                                                                    
National  Environmental Policy  Act  (NEPA) policy  reviews.                                                                    
She  indicated that  the introductory  conversation included                                                                    
some great information about the 30/30 initiative.                                                                              
                                                                                                                                
Ms.   Skibinski  continued   that  the   orders  and   other                                                                    
initiatives  were  massive   land  management  actions  that                                                                    
required hours  of reading and research  to fully understand                                                                    
the  implications to  all Alaskans.  She suggested  that for                                                                    
many years  CACFA had been  the entity  to keep up  with the                                                                    
information. The  Alaska Miners  Association thought  it was                                                                    
more critical than ever for  the commission to be engaged in                                                                    
identifying the  impacts of federal actions  coming from the                                                                    
current  administration. She  believed  SB 101  was a  great                                                                    
start keeping  CACFA in statute  and addressing  the issues.                                                                    
She noted  having a  letter on record  and urged  members to                                                                    
pass the bill out of committee.                                                                                                 
                                                                                                                                
9:21:03 AM                                                                                                                    
                                                                                                                                
RAY KREIG,  SELF, ANCHORAGE  (via teleconference),  spoke in                                                                    
support of SB  101. He reported that in  1978 when President                                                                    
Carter  declared  national  monuments  across  Alaska  as  a                                                                    
precursor to ANILCA, he owned  two properties - one near Mt.                                                                    
McKinley  National Park  and one  in the  Upper Yukon  River                                                                    
area.  He noted  Alaskans  having had  a  huge problem  with                                                                    
federal  and  state  interface because  of  the  action.  He                                                                    
learned about CACFA being  proposed, testified, and followed                                                                    
the  legislation  at  the  beginning  of  CACFA  when  Betty                                                                    
Fehrenkamp was  carrying it 40  years prior. Since  then, he                                                                    
had watched CACFA become an  effective and economic means of                                                                    
helping citizens  deal with federal overreach.  He urged the                                                                    
legislature to  extend CACFA's existence  and to  support it                                                                    
financially.                                                                                                                    
                                                                                                                                
9:23:34 AM                                                                                                                    
                                                                                                                                
Co-Chair Bishop CLOSED public testimony.                                                                                        
                                                                                                                                
Co-Chair  Bishop  stated  that the  amendment  deadline  was                                                                    
Friday, April 23, 2021 at 12:00 P.M.                                                                                            
                                                                                                                                
Co-Chair  Stedman commented  that the  funding for  CACFA in                                                                    
the amount of  $178,000 was not insurmountable  and would be                                                                    
money well spent.                                                                                                               
                                                                                                                                
SB  101  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
SENATE BILL NO. 25                                                                                                            
                                                                                                                                
     "An Act  relating to the establishment  and maintenance                                                                    
     of an  Internet website providing information  on state                                                                    
     government  financial transactions  and specifying  the                                                                    
     information to be made available on the website."                                                                          
                                                                                                                                
9:24:57 AM                                                                                                                    
                                                                                                                                
SENATOR  BILL WIELECHOWSKI,  SPONSOR,  introduced the  bill.                                                                    
Senate  Bill 25  would create  a publicly  searchable online                                                                    
checkbook.  The state  currently  had  an excel  spreadsheet                                                                    
that  could   be  downloaded.  However,  it   was  extremely                                                                    
difficult to download  and very slow to operate.  It was not                                                                    
intuitive and did not provide  much information. It was also                                                                    
not easily searchable.                                                                                                          
                                                                                                                                
Senator  Wielechowski continued  that all  of the  things he                                                                    
mentioned had led  to the State of Alaska  receiving a grade                                                                    
of  F  from  groups  that  monitored  access  to  government                                                                    
information. In the supporting documents  there was a report                                                                    
from  the United  States Public  Interest Research  Group, a                                                                    
non-partisan organization,  which rated states  on financial                                                                    
transparency. The  organization had given  Alaska an F  in 5                                                                    
out of  the previous  6 years.  Alaska was  currently ranked                                                                    
49th out of the 50 states  in terms of access to the state's                                                                    
financial information.  In the  prior spring  the Department                                                                    
of Administration  (DOA) removed the state's  checkbook from                                                                    
the website. The information was  back online after the most                                                                    
recent hearing  in the Senate  State Affairs  Committee. The                                                                    
committee was  displeased that the checkbook  had been taken                                                                    
down.                                                                                                                           
                                                                                                                                
Senator  Wielechowski asserted  that Alaska  was effectively                                                                    
the least  transparent state  in the  United States  when it                                                                    
came   to   providing   access   to   government   financial                                                                    
information.  The  bill  was   easy  to  implement,  as  the                                                                    
financial information  was already  collected by  the state.                                                                    
It  was  simply  a  matter of  someone  putting  together  a                                                                    
publicly searchable website. He  noted that when the website                                                                    
was taken down,  he had his staff build  an online checkbook                                                                    
which took about  a day and a half. His  staff's version was                                                                    
not  as  sophisticated  as  he would  have  liked,  but  the                                                                    
state's talented  IT staff would  likely be able to  get the                                                                    
task done  with ease.  The bill  had widespread  support. He                                                                    
had  introduced a  bill in  2009 that  was almost  identical                                                                    
which  passed in  the Senate  but not  in the  House in  the                                                                    
final days of  session. One of the arguments  against it was                                                                    
that  it  was  not  needed because  the  state  had  already                                                                    
started doing it  once the bill had  been proposed. However,                                                                    
currently it  was needed since the  administration had taken                                                                    
it down.                                                                                                                        
                                                                                                                                
Senator Wielechowski relayed there  were a couple of reasons                                                                    
why he thought  the legislation could save the  state in the                                                                    
long run.  First, it allowed  the public to see  where state                                                                    
money  was  being spent  and  suggest  efficiencies. He  had                                                                    
heard  from businesses  and  contractors  who supported  the                                                                    
bill because  it allowed  them to see  the amounts  of their                                                                    
competitors'   contracts   which    would   encourage   more                                                                    
competitive  bids to  the state  and save  the state  money.                                                                    
Currently, anyone who wanted information  from the state had                                                                    
to submit a  request. In other states where  there were more                                                                    
sophisticated online  checkbooks, it saved  state resources.                                                                    
Instead  of  people having  to  submit  formal requests  for                                                                    
information, they  would be  able to go  online and  get the                                                                    
information  themselves.  It  would reduce  the  efforts  of                                                                    
state  employees   having  to  obtain  the   information  in                                                                    
response to formal  requests. He argued that the  bill was a                                                                    
common-sense  piece   of  legislation  and   urged  members'                                                                    
support.                                                                                                                        
                                                                                                                                
Senator Olson wondered what other  states did to try to make                                                                    
an  online format  more  user friendly  for  looking at  the                                                                    
state's finances.                                                                                                               
                                                                                                                                
Senator Wielechowski  noted that  Ohio was  one of  the best                                                                    
states in  terms of  its access  to state  financial records                                                                    
online. He had talked to  the department responsible for the                                                                    
State  of  Ohio's checkbook  online  to  find out  more.  He                                                                    
deferred to his staff to provide additional insight.                                                                            
                                                                                                                                
9:29:59 AM                                                                                                                    
                                                                                                                                
NATE GRAHAM, STAFF, SENATOR  BILL WIELECHOWSKI, replied that                                                                    
in  Alaska if  a  member of  the public  wanted  to see  the                                                                    
state's  financial transactions,  they  had  to download  an                                                                    
Excel spreadsheet  that had  100,000 or  more lines  of data                                                                    
and search individually from the  downloaded Excel sheet for                                                                    
the  expenses they  wanted to  see. States  like Ohio  had a                                                                    
tool similar  to a Google  search where a person  could type                                                                    
in  a  department  or  a   vendor  and  the  expenses  would                                                                    
automatically pop up. Ohio used a  system that did not use a                                                                    
giant Excel spreadsheet.  The process was all  online and it                                                                    
was easy  to extract  the necessary  data. He  suggested the                                                                    
search was similar to the  one used on Alaska Public Offices                                                                    
Commission's (APOC) website.                                                                                                    
                                                                                                                                
Senator Wilson directed a question to DOA.                                                                                      
                                                                                                                                
9:31:44 AM                                                                                                                    
                                                                                                                                
HANS ZIGMUND,  DIRECTOR, DIVISION OF FINANCE,  DEPARTMENT OF                                                                    
ADMINISTRATION (via teleconference), introduced himself.                                                                        
                                                                                                                                
Senator  Wilson asked  about  the fiscal  note  and the  new                                                                    
software upgrade to  IRIS which was expected  to conclude in                                                                    
FY 22.  It would  have to automatically  be placed  into the                                                                    
reporting  requirement. He  wondered if  the new  upgrade of                                                                    
IRIS already  included a  searchability function  or whether                                                                    
it  would  be  an  additional   cost.  It  looked  like  the                                                                    
additional  consulting and  development costs  were expected                                                                    
to  be  $40,400.  However,  the fiscal  note  was  zero.  He                                                                    
wondered  if the  costs of  the  reporting requirement  were                                                                    
already included.                                                                                                               
                                                                                                                                
Mr. Zigmund  responded that  it was  an additional  fee. The                                                                    
IRIS upgrade  was expected to  conclude in January  2022 and                                                                    
was being paid for with  the capital appropriations that had                                                                    
already  been  provided  to the  Division  of  Finance.  The                                                                    
expense was  a separate capability that  required a separate                                                                    
capital  expenditure. The  monies  that were  in the  online                                                                    
checkbook bill  were for the servers  and data visualization                                                                    
software that the  state would be using to  overcome some of                                                                    
the challenges  that Senator  Wielechowski presented  in his                                                                    
testimony.  For example,  the current  checkbook was  not as                                                                    
visually appealing or as easily searchable as Ohio's.                                                                           
                                                                                                                                
Mr.  Zigmund  continued that  part  of  what the  department                                                                    
intended  to do  was utilize  software licenses  and servers                                                                    
through the  Office of Information  Technology and  would be                                                                    
ongoing  operating  expenses.  There were  also  development                                                                    
costs for creating an online  checkbook. The complexities of                                                                    
creating  an   online  checkbook  came  from   a  number  of                                                                    
different  areas. He  explained  that when  the Division  of                                                                    
Finance was working  with the data, they started  at a level                                                                    
below what  the public would see.  The state had to  do mass                                                                    
data for  confidentiality, aggregate  confidential payments,                                                                    
and  avoid   disclosure  of  anything  that   could  not  be                                                                    
disclosed. He  also noted that conversations  with the State                                                                    
of  Ohio  also  highlighted  some  of  the  challenges  they                                                                    
experienced  in building  their  online  checkbooks so  that                                                                    
things like  child welfare payments and  victim restitutions                                                                    
were not  improperly disclosed. The division  would be using                                                                    
additional resources  from CGI to help  with the development                                                                    
beyond the cost of the IRIS upgrade.                                                                                            
                                                                                                                                
Senator Wilson wondered whether the  vendor in Ohio would be                                                                    
the same vendor in Alaska.                                                                                                      
                                                                                                                                
Mr. Zigmund replied in the negative.                                                                                            
                                                                                                                                
Senator  Bishop  asked  Mr.   Graham  to  walk  through  the                                                                    
sectional analysis of the bill.                                                                                                 
                                                                                                                                
9:36:11 AM                                                                                                                    
                                                                                                                                
Mr. Graham reviewed the Sectional Analysis (copy on file):                                                                      
                                                                                                                                
     Section 1                                                                                                                  
     Names the act "the Alaska Online Checkbook Act."                                                                           
                                                                                                                                
     Section 2                                                                                                                  
     Adopts legislative findings and intent:                                                                                    
                                                                                                                                
          Subsection (a) establishes that this bill is                                                                          
          intended to allow people identify and discover                                                                        
          state revenue and expenditures.                                                                                       
                                                                                                                                
          Subsection   (b)  requires   that   this  act   by                                                                    
          interpreted   in    favor   of    disclosure   and                                                                    
          transparency.                                                                                                         
                                                                                                                                
          Subsection  (c)  finds   that  state  revenue  and                                                                    
          expenditures  must  be  accounted for  and  easily                                                                    
          accessible to  the public in  order to  maintain a                                                                    
          fair and open government.                                                                                             
                                                                                                                                
          Subsection  (d)  adopts   intent  that  the  state                                                                    
          should  strive to  create a  user-friendly website                                                                    
          that  gives  the  public  access  to  the  state's                                                                    
          financial information in a centralized location.                                                                      
                                                                                                                                
     Section 3                                                                                                                  
     Requires that the Department  of Administration to make                                                                    
     the financial transactions of the  state and the annual                                                                    
     audit available  electronically for  use in  the public                                                                    
     finance internet website.                                                                                                  
                                                                                                                                
     Section 4                                                                                                                  
     Creates a new AS 37.05.215.                                                                                                
                                                                                                                                
          AS  37.05.215 (a)     Requires  the Department  of                                                                    
          Administration to  develop operate and  maintain a                                                                    
          searchable,  free  to  the  public,  website  that                                                                    
          provides financial information  available from the                                                                    
          central accounting system  or the annual financial                                                                    
          report.                                                                                                               
                                                                                                                                
          AS 37.05.215 (a) (1)-(3)    Requires the following                                                                    
          information and  transactions to be posted  on the                                                                    
          online  check  book   website  and  monthly  state                                                                    
          income including:                                                                                                     
               ?  Receipts or  deposits  by  a state  agency                                                                    
               into  a fund  or  account established  within                                                                    
               the state treasury.                                                                                              
               ? Proceeds  from taxes  received, categorized                                                                    
               by   source    type,   including   compulsory                                                                    
               contributions  imposed by  the state  for the                                                                    
              purpose of financing services.                                                                                    
               ?    Agency   earnings    including   amounts                                                                    
               collected  for sales  or services,  licenses,                                                                    
               or permits  issued, or otherwise  received by                                                                    
               an agency.                                                                                                       
               ?  Revenue  received  for the  use  of  state                                                                    
               money  or  property  including  interest  and                                                                    
               lease payments  gifts, donations  and federal                                                                    
               receipts and other revenue.                                                                                      
                                                                                                                                
          Expenditures including:                                                                                               
               ? The  names and locations of  any persons to                                                                    
               whom payment was made.                                                                                           
               ? The amounts of the expenditures disbursed.                                                                     
               ? The  type of transaction, by  account code,                                                                    
               including the purpose of the expenditure.                                                                        
               ?   Other   information  specified   by   the                                                                    
               department.                                                                                                      
               The balance of the following state accounts:                                                                     
               ? Statutory Budget Reserve.                                                                                      
               ? Constitutional Budget Reserve.                                                                                 
               ? Permanent Fund Earnings Reserve Account.                                                                       
                                                                                                                                
          AS 37.05.215 (a) (4)-(7)    Requires the following                                                                    
          information  be posted  on the  online check  book                                                                    
          website and updated monthly:                                                                                          
                                                                                                                                
          The amount deposited into  the Permanent Fund from                                                                    
          all  mineral  lease  rentals,  royalties,  royalty                                                                    
          sale  proceeds,  federal mineral  revenue  sharing                                                                    
          payments, and bonuses received by the state.                                                                          
                                                                                                                                
          State revenue and expenditures, summarized by:                                                                        
                                                                                                                                
          General  fund   revenue  sources   categorized  by                                                                    
          function, department, and account.                                                                                    
                                                                                                                                
          Total    general   fund    income   compared    to                                                                    
          expenditures.                                                                                                         
                                                                                                                                
          Total assets  compared to  liabilities at  the end                                                                    
          of the fiscal year.                                                                                                   
                                                                                                                                
          For  the preceding  10 years,  by fiscal  year the                                                                    
          following:                                                                                                            
               ?   The   number   of  state   employees   by                                                                    
               department.                                                                                                      
               ?  The  number   of  independent  contractors                                                                    
               engaged by the state by department.                                                                              
               ?  The  total  long-term  debt  owed  by  the                                                                    
               state.                                                                                                           
               ? Total general fund expenditures.                                                                               
               ? All general fund payroll by department.                                                                        
                                                                                                                                
          AS  37.05.215   (b)     Describes   the  reporting                                                                    
         requirements for the previous subsection.                                                                              
                                                                                                                                
          AS 37.05.215  (c)(1)    Requires that  the website                                                                    
          have reference  materials to assist the  public in                                                                    
          understanding  the   financial  provided   on  the                                                                    
          website.                                                                                                              
                                                                                                                                
          AS  37.05.215 (c)(2)     Requires  the website  to                                                                    
          have  a feature  that allows  users to  search for                                                                    
          information   on  the   website  by   keyword  and                                                                    
          recipient.                                                                                                            
                                                                                                                                
          AS 37.05.215 (c)(3)   Requires  the site to have a                                                                    
          link  to  the  website of  the  Legislative  Audit                                                                    
          Division.  The site  must also  include electronic                                                                    
          copies  of information  related  to state  service                                                                    
          procurement contracts,  including compensation and                                                                    
          contract  length  and  of information  related  to                                                                    
          independent contractors  engaged by the  state, by                                                                    
          state agency, including  compensation and contract                                                                    
          length.                                                                                                               
                                                                                                                                
          AS  37.05.215 (d)     Requires  the Department  of                                                                    
          Revenue  and other  state  agencies  that use  the                                                                    
          central accounting  system to  provide information                                                                    
          to  the  Department   of  Administration  that  is                                                                    
          necessary to comply with this act.                                                                                    
                                                                                                                                
          AS 37.05.215  (e)   Clarifies that  this bill will                                                                    
          not require the disclosure  of information that is                                                                    
          confidential  under  state   or  federal  law  and                                                                    
          requires that aggregated  information be disclosed                                                                    
          if it can properly protect confidentiality                                                                            
                                                                                                                                
          AS    37.05.215    (f)   Defines    "expenditure,"                                                                    
          "searchable   Internet    website,"   and   "state                                                                    
          agency."                                                                                                              
                                                                                                                                
     Section 5                                                                                                                  
     Requires the website to be operating on or before                                                                          
     October 1, 2022.                                                                                                           
                                                                                                                                
     Section 6                                                                                                                  
     Requires information from the previous fiscal year be                                                                      
     on the website by October 1, 2023 and requires site to                                                                     
     be updated.                                                                                                                
                                                                                                                                
     Requires the Department of Administration to continue                                                                      
     to make their current Alaska Checkbook Online Internet                                                                     
     website operational until the bill goes into effect.                                                                       
                                                                                                                                
     Transitional Provisions                                                                                                    
     Requires the Department of Administration to continue                                                                      
     to maintain their current online checkbook, until                                                                          
     section 4 of this act take effect.                                                                                         
                                                                                                                                
9:42:05 AM                                                                                                                    
                                                                                                                                
Senator Hoffman  pointed to  page 5,  and the  definition of                                                                    
"expenditure." He  remarked that at  the end of  each fiscal                                                                    
year the State of Alaska  had encumbrances that committed to                                                                    
making  payments  of substantial  amounts.  He  did not  see                                                                    
encumbrances as a category. He  wondered why it had not been                                                                    
included in the definition of expenditure.                                                                                      
                                                                                                                                
Mr.  Graham would  have to  get back  with an  answer. There                                                                    
were  a  few  issues   with  the  expenditure  that  Senator                                                                    
Wielechowski  was   trying  to   address.  For   example,  a                                                                    
Permanent Fund  Dividend would be  included, yet it  was not                                                                    
the intent to  list every Alaskan who was paid  a PFD in the                                                                    
checkbook. There  were some issues  that still needed  to be                                                                    
resolved.                                                                                                                       
                                                                                                                                
Senator Hoffman noted  that it was not a  small item, rather                                                                    
it  was huge.  Individuals would  not see  the total  amount                                                                    
until   an  encumbrance   was   paid.   He  suggested   that                                                                    
encumbrances  be included  in  the  expenditures to  provide                                                                    
Alaskans a  clear picture of  committed monies.  He provided                                                                    
an example  of building a school.  At the halfway mark  of a                                                                    
project  $10  million  was expended,  but  $20  million  was                                                                    
appropriated.   The  appropriation   amount  was   important                                                                    
information  for the  public to  know about  as well  as the                                                                    
amount already expended for the  school project. Both pieces                                                                    
of information were critical for transparency.                                                                                  
                                                                                                                                
Co-Chair Stedman added  to the topic of  accrual. He thought                                                                    
it  was  also  significant   when  looking  at  the  state's                                                                    
savings.  For  example,  the Constitutional  Budget  Reserve                                                                    
(CBR)  had  encumbrances, and  it  was  nice to  know  about                                                                    
available  cash  balances.  He   wanted  to  avoid  as  much                                                                    
misinformation as possible.                                                                                                     
                                                                                                                                
9:46:10 AM                                                                                                                    
                                                                                                                                
Co-Chair Bishop asked if the  bill sponsor had any anecdotal                                                                    
or analytical  figures regarding  the traffic  accessing the                                                                    
checkbook in a given year.                                                                                                      
                                                                                                                                
Mr. Graham deferred to Mr. Zigmund.                                                                                             
                                                                                                                                
Mr.  Zigmund replied  that  he would  have  to research  the                                                                    
answer and get back to the committee.                                                                                           
                                                                                                                                
Senator  Wilson asked  if the  bill  sponsor would  consider                                                                    
including  the reimbursable  service  agreements (RSAs).  He                                                                    
was  aware of  one department  having about  $17 million  of                                                                    
unbudgeted RSAs. He wondered if  it had been a consideration                                                                    
and why it was excluded.                                                                                                        
                                                                                                                                
Mr. Graham agreed to provide the information.                                                                                   
                                                                                                                                
Co-Chair  Bishop  asked  Mr. Graham  if  he  understood  the                                                                    
senator's question.                                                                                                             
                                                                                                                                
Mr. Graham replied in the affirmative.                                                                                          
                                                                                                                                
9:48:00 AM                                                                                                                    
                                                                                                                                
Co-Chair Bishop OPENED public testimony.                                                                                        
                                                                                                                                
RYAN  MCKEE,  STATE   DIRECTOR,  AMERICANS  FOR  PROSPERITY,                                                                    
WASILLA (via  teleconference), testified  in support  of the                                                                    
bill. Senate Bill 25 would  create a free searchable website                                                                    
that  would provide  Alaskans with  easy access  to detailed                                                                    
and comprehensive  information on  state spending.  It would                                                                    
encourage  better  understanding  of  state  operations  and                                                                    
ultimately  reduce   waste  and  ensure  that   funding  was                                                                    
directed to the state's most  important needs. All 50 states                                                                    
operated   websites   that   made   information   on   state                                                                    
expenditures  and  revenue  open  to  the  public.  However,                                                                    
compared  to other  states, Alaska's  website was  ranked as                                                                    
one of  the worst in  the nation. Additionally,  the state's                                                                    
online checkbook website  removed all of FY  20 expenses and                                                                    
has not  been updated in  nearly a year. Although  the state                                                                    
had an online checkbook, it  did not provide any big picture                                                                    
context  about   state  expenditures  versus   revenue.  The                                                                    
checkbook codified in law.                                                                                                      
                                                                                                                                
Mr. McKee  continued that  the ability  to see  how Alaska's                                                                    
government   used   public   funding  was   fundamental   to                                                                    
transparency,  bolstered  public confidence  in  government,                                                                    
and   promoted   fiscal    responsibility.   Americans   For                                                                    
Prosperity  also believed  that  if the  state maintained  a                                                                    
better  website, it  could save  the state  time and  money.                                                                    
State employees  currently spent time responding  to freedom                                                                    
of information  requests for  public information  that could                                                                    
and should  already be  accessible online.  It was  his hope                                                                    
that  the  state  and   federal  government  would  champion                                                                    
economic opportunity-focused  reforms that  allowed Alaskans                                                                    
to  keep more  of  their hard-earned  paychecks and  recover                                                                    
stronger  from COVID-19.  He encouraged  the Senate  Finance                                                                    
Committee to pass the legislation.                                                                                              
                                                                                                                                
9:50:27 AM                                                                                                                    
                                                                                                                                
PORTIA   NOBLE,   SELF,  ANCHORAGE   (via   teleconference),                                                                    
testified in  support of the  legislation. She  was grateful                                                                    
for Senator Wielechowski's approach  to giving Alaskans more                                                                    
access and  transparency. Nearly  every state in  the nation                                                                    
had  some kind  of  transparency  website including  Alaska.                                                                    
However,  some websites  were better  than others.  Alaskans                                                                    
deserved to know  exactly how tax dollars  were being spent.                                                                    
The checkbook site would be  a user-friendly tool that would                                                                    
help  Alaskans understand  where public  dollars were  being                                                                    
used. More  importantly, her  hope was  that the  bill would                                                                    
help   elected  officials   root  out   wasteful  government                                                                    
spending.  Increasing  transparency and  accountability  was                                                                    
key  to  restoring trust  in  government  and  to not  be  a                                                                    
partisan issue.  She was grateful that  Senator Wielechowski                                                                    
addressed  the concerns  of the  former commissioner  of DOA                                                                    
regarding the  number of independent contractors  engaged by                                                                    
each  agency  and  the  total long-term  debt  owed  by  the                                                                    
agencies. She reiterated her support for SB 25.                                                                                 
                                                                                                                                
9:52:10 AM                                                                                                                    
                                                                                                                                
Co-Chair Bishop CLOSED public testimony.                                                                                        
                                                                                                                                
9:52:13 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:52:55 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  Bishop stated  that  there  were many  outstanding                                                                    
questions  that   needed  addressing  before   an  amendment                                                                    
deadline could be set. He discussed the following day's                                                                         
agenda.                                                                                                                         
                                                                                                                                
SB 25 was HEARD and HELD in committee for further                                                                               
consideration.                                                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
9:53:45 AM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 9:53 a.m.                                                                                          

Document Name Date/Time Subjects
SB 101 Sponsor Statement-CACFA 3.26.21.pdf SFIN 4/20/2021 9:00:00 AM
SRES 3/29/2021 3:30:00 PM
SB 101
SB 101 White Paper Differneces ANILCA Program & CACFA.pdf HRES 5/14/2021 1:00:00 PM
SFIN 4/20/2021 9:00:00 AM
SRES 3/29/2021 3:30:00 PM
SB 101
SB 101 Letter of Support Stan Leaphart 3.28.21.pdf HRES 5/14/2021 1:00:00 PM
SFIN 4/20/2021 9:00:00 AM
SRES 3/29/2021 3:30:00 PM
SB 101
SB 101 Letter of Support SCI AK 3.28.21.pdf HRES 5/14/2021 1:00:00 PM
SFIN 4/20/2021 9:00:00 AM
SRES 3/29/2021 3:30:00 PM
SB 101
SB 101 Letter of Support Charlie Lean 3.28.21.pdf HRES 5/14/2021 1:00:00 PM
SFIN 4/20/2021 9:00:00 AM
SRES 3/29/2021 3:30:00 PM
SB 101
SB 101 Support DOC Newsminer Editorial 11.15.2020.pdf HRES 5/14/2021 1:00:00 PM
SFIN 4/20/2021 9:00:00 AM
SRES 3/29/2021 3:30:00 PM
SB 101
SB 101 AOC Letter of Support 3.26.21.pdf HRES 5/14/2021 1:00:00 PM
SFIN 4/20/2021 9:00:00 AM
SRES 3/29/2021 3:30:00 PM
SB 101
SB101 Letter of Support CAP 4.2.21.pdf HRES 5/14/2021 1:00:00 PM
SFIN 4/20/2021 9:00:00 AM
SRES 3/29/2021 3:30:00 PM
SB 101
SB 101 Letter of Support AMA 4.12.21.pdf HRES 5/14/2021 1:00:00 PM
SFIN 4/20/2021 9:00:00 AM
SRES 4/12/2021 3:30:00 PM
SB 101
SB 101 LB&A CACFA Audit Report 4.8.2020.pdf HRES 5/14/2021 1:00:00 PM
SFIN 4/20/2021 9:00:00 AM
SRES 3/29/2021 3:30:00 PM
SB 101
3 SB 25 Sponsor Statement.pdf SFIN 4/20/2021 9:00:00 AM
SSTA 2/2/2021 3:30:00 PM
SB 25
SB 25 Explanation of Changes V.a to V.b.pdf SFIN 4/20/2021 9:00:00 AM
SFIN 1/24/2022 1:00:00 PM
SB 25
6 SB 25 Supporting Doc 2 Historical 10-19 Reports Follow The Money.pdf SFIN 4/20/2021 9:00:00 AM
SSTA 2/2/2021 3:30:00 PM
SB 25
5 SB 25 Supporting Doc 1 Follow the Money 2018 Report.pdf SFIN 4/20/2021 9:00:00 AM
SSTA 2/2/2021 3:30:00 PM
SB 25
SB 25 Updated Sectional Version b.pdf SFIN 4/20/2021 9:00:00 AM
SB 25
7 SB 25 Supporting Doc 3 Online Checkbook Examples.pdf SFIN 4/20/2021 9:00:00 AM
SSTA 2/2/2021 3:30:00 PM
SB 25
SB 25 AKPIRG ST AFF testimony.pdf SFIN 4/20/2021 9:00:00 AM
SFIN 1/24/2022 1:00:00 PM
SB 25
SB 25 AFP-AK Support Letter_ (002).pdf SFIN 4/20/2021 9:00:00 AM
SFIN 1/24/2022 1:00:00 PM
SB 25
SB 25 Responses to SFIN Committee Members re SB 25 Online Checkbook 5.03.21.pdf SFIN 4/20/2021 9:00:00 AM
SFIN 1/24/2022 1:00:00 PM
SB 25