Legislature(2015 - 2016)BUTROVICH 205
02/12/2015 09:00 AM Senate STATE AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| Overview: Department of Administration | |
| SB36 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| *+ | SB 36 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
SENATE STATE AFFAIRS STANDING COMMITTEE
February 12, 2015
8:58 a.m.
MEMBERS PRESENT
Senator Bill Stoltze, Chair
Senator John Coghill, Vice Chair
Senator Charlie Huggins
Senator Bill Wielechowski
MEMBERS ABSENT
Senator Lesil McGuire
COMMITTEE CALENDAR
DEPARTMENT OF ADMINISTRATION - OVERVIEW
- HEARD
CONTINUING DISCUSSION OF THE IMPLEMENTATION OF BALLOT MEASURE
NO. 2 (13PSUM) - AN ACT TO TAX AND REGULATE THE PRODUCTION,
SALE, AND USE OF MARIJUANA
- SCHEDULED BUT NOT HEARD
SENATE BILL NO. 36
"An Act relating to electronic publication of certain municipal
notices and to publication and electronic distribution of
reports by state agencies."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 36
SHORT TITLE: ELECTRONIC DISTRIB. OF REPORTS/NOTICES
SPONSOR(s): SENATOR(s) GIESSEL
02/02/15 (S) READ THE FIRST TIME - REFERRALS
02/02/15 (S) STA, FIN
02/12/15 (S) STA AT 9:00 AM BUTROVICH 205
WITNESS REGISTER
SHELDON FISHER, Commissioner
Department of Administration (DOA)
Juneau, Alaska
POSITION STATEMENT: Provided a departmental overview.
SENATOR CATHY GIESSEL
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of SB 36.
JANE CONWAY, Staff
Senator Cathy Giessel
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided an overview of SB 36 on behalf of
the sponsor.
ROBIN WARD, Acting Director
Real Estate Department
Municipality of Anchorage
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 36.
LINDA THIBODEAU, Director
Division of Libraries, Archives, and Museums
Department of Education and Early Development (DEED)
Juneau, Alaska
POSITION STATEMENT: Presented information related to SB 36.
CRAIG KAHKLEN, Policy Analyst
Office of Budget and Management
Office of the Governor
Juneau, Alaska
POSITION STATEMENT: Answered questions related to SB 36.
RUSTAN BURTON, Publisher
Juneau Empire
Juneau, Alaska
POSITION STATEMENT: Testified in opposition to SB 36.
KATHIE WASSERMAN, Executive Director
Alaska Municipal League
Juneau, Alaska
POSITION STATEMENT: Testified in support of SB 36.
ACTION NARRATIVE
8:58:14 AM
CHAIR BILL STOLTZE called the Senate State Affairs Standing
Committee meeting to order at 8:58 a.m. Present at the call to
order were Senator Huggins and Chair Stoltze. He noted there was
not a quorum.
^ OVERVIEW: DEPARTMENT OF ADMINISTRATION
OVERVIEW: DEPARTMENT OF ADMINISTRATION
8:58:39 AM
CHAIR STOLTZE announced that the committee would hear a
presentation from the Commissioner of the Department of
Administration.
8:58:48 AM
SHELDON FISHER, Commissioner, Department of Administration
(DOA), provided a departmental overview. He began by describing
the organizational chart of the department.
CHAIR STOLTZE asked Commissioner Sheldon to address some of the
issues that DOA's divisions and agencies face.
8:59:38 AM
COMMISSIONER FISHER said he will address various divisional and
agency functions, cuts, and areas DOA is focusing on to make
some differences in state administration.
CHAIR STOLTZE also requested a review of DOA's pending fiscal
challenges during the presentation.
COMMISSIONER FISHER set forth that DOA provides services both to
the public and to other state agencies across Alaska. He noted
that between the Division of Motor Vehicles and the Public
Defender Agency, DOA covers most of the state. He added that the
Office of Public Advocacy also has a number of offices, as well
as DOA's main administrative offices in Anchorage and Juneau.
9:00:51 AM
COMMISSIONER FISHER explained that DOA has divisions that
specifically provide services to the public, most notably the
Division of Motor Vehicles (DMV). He said DOA will continue to
provide focus on DMV to come up with strategies and plans to
improve systems. He added that DOA's public service divisions
include the Public Defender Agency (PDA) and the Office of
Public Advocacy (OPA).
SENATOR HUGGINS asked if DOA will continue to have DMV use the
private sector to support the division's licensing program.
9:02:16 AM
COMMISSIONER FISHER answered that DMV will continue to leverage
a variety of resources to take care of people's needs: providing
more capabilities to auto dealers and enhancing the division's
website. He noted that DMV had 40 percent of its registration
renewals done online. He said using tools that can remove people
out of DMV locations makes lines in its locations fast and more
efficient, and provides a better service all together. He stated
that DMV has been asked to look at opportunities to expand
service in a cost-effective way that provides positive service
to Alaska's citizens.
9:03:51 AM
SENATOR HUGGINS called attention to personalized license plates
and asked what other states are doing regarding license plate
modifications.
COMMISSIONER FISHER noted that some license plate modifications
are made by the legislature. He conceded that there needs to be
some limits on the scope of license plate modifications.
9:05:01 AM
COMMISSIONER FISHER called attention to PDA and OPA, noting that
the two organizations have constitutionally mandated
requirements. He said DOA has found that the caseloads have
increased substantially for PDA and OPA. He revealed that
Governor Walker has established an ad hoc, criminal justice
group that is looking at how DOA can address the caseload. He
noted that PDA and OPA account for nearly $50 million of DOA's
$88 million in general funds. He pointed out that DOA has tried
to keep funding flat in order to minimize any impact on PDA and
OPA from the current budget challenges, resulting in large cuts
in other organizations. He noted that the Division of Retirement
and Benefits (DRB) & Special Systems is the fourth division that
provides services to the public. He said that DRB provides a
fairly substantial role in managing the experience of the
state's retirees, as well as managing the state's unfunded
liability.
9:06:46 AM
CHAIR STOLTZE asked if Commissioner Fisher has ever thought
about shifting workloads. He noted that OPA does criminal
activities, but added that OPA tends to reference "kids" when
talking about their mission. He asked if consideration has been
given to shift the criminal side exclusively to PDA, leaving
civil and family matters to OPA. He opined that a workload shift
would let each department do what it does best and focus on
their missions.
COMMISSIONER FISHER replied that there has been some partial
discussions and noted that, at times, there is a conflict of
interest that necessitates two agencies.
CHAIR STOLTZE pointed out that he is pleased to see that PDA and
OPA have retained their directors.
9:08:46 AM
SENATOR HUGGINS asked to address DOA's Alaska Public
Broadcasting Commission (APBC). He pointed out that Commissioner
Fisher said the positions are independent entities and the state
spends $5 million on APBC.
COMMISSIONER FISHER answered that the bulk of APBC's money is
used to fund public broadcasting through grants. He detailed
that APBC receives money from the state and disperses the funds
to public broadcasting facilities to pay for staff. He revealed
that DOA did not list the position of every public broadcasting
organization.
SENATOR HUGGINS asked for three things from APBC that are funded
by the state's grant.
COMMISSIONER FISHER explained that funding consists of a general
grant to public broadcasting organizations that is not specific
to programing. He said that the $5.4 million provided to APBC
accounts 8 to 9 percent of the overall budget for public
broadcasting facilities.
CHAIR STOLTZE asked if APBC would be a priority if DOA was doing
a zero-based budget.
COMMISSIONER FISHER explained that APBC's budget has been
reduced by 15 percent. He noted that in certain communities,
public broadcasting is all they have and support is appropriate.
CHAIR STOLTZE asked if Commissioner Fisher prioritizes within
DOA for unserved communities. He inquired if Anchorage,
Fairbanks, and Juneau are last on his list for public
broadcasting.
COMMISSIONER FISHER replied that grant administration decisions
are decided by APBC and not by DOA.
CHAIR STOLTZE asked if APBC and DOA need criteria direction for
unserved communities. He stated that he is not going after
APBC's program, but noted that the Governor had said nothing is
sacred. He explained that competition exists within DOA for
constitutionally mandated funding, as well as burgeoning costs
in other divisions.
9:12:15 AM
COMMISSIONER FISHER replied that the unserved and underserved
communities should be a higher priority based upon his value
system.
CHAIR STOLTZE warned that Commissioner Fisher's findings on
APBC's funding distribution and priorities will be provocative
to some folks.
9:12:57 AM
COMMISSIONER FISHER pointed out DOA services that are provided
to other state agencies. He explained that the Division of
General Services (DGS) has two primary functions: one is the
management of the state's leased and owned facilities, the
second is the centralized portion of procurement. He explained
that the Division of Personnel and Labor Relations (DOPLR) has
the centralized human resources function, as well as managing
the labor relations and contracting with the bargaining units.
He said Enterprise Technology Services (ETS) represents the
statewide information technology (IT) function.
CHAIR STOLTZE asked Commissioner Fisher to address DGS's space
standards. He asked if he felt that the space standards are a
good thing, bad thing, or a cost saver.
COMMISSIONER FISHER replied that he has heard people expressing
concerns and frustrations over the space standards. He revealed
that DOA has put a pause on space standards to do an analysis if
money savings were realized. He asserted that space standards
are saving the state money. He noted that the standards
implemented are very similar and in some respects more generous
than what is seen in the private sector. He pointed out that the
equipment being used is the same that BP uses at their offices
in Alaska.
9:15:04 AM
CHAIR STOLTZE asked if space standards should be a bargaining
item.
COMMISSIONER FISHER answered that he does not. He said that DOA
does not believe space standards is something that is required
to be bargained, but noted that the bargaining units have filed
an unfair labor practice complaint against DOA. He revealed that
DOA has engaged in a space standards dialogue with the
bargaining units to address their concerns.
CHAIR STOLTZE asked if the dialogue is a good-faith public
relations effort, rather than a capitulation.
COMMISSIONER FISHER answered absolutely. He opined that space
standards are an effective tool to reduce cost in an environment
where the budget is going to be determined by external facts,
such as the price of oil.
9:15:32 AM
SENATOR COGHILL joined the committee meeting.
COMMISSIONER FISHER explained that ETS provides the statewide IT
core infrastructure. The Division of Finance (DOF) provides
statewide financial and payroll systems, as well as
administering e-travel, compiling the Comprehensive Annual
Finance Report (CAFR), audits, and bringing online a new
Integrated Resource Information System (IRIS) that will be a
benefit to the state.
9:17:20 AM
SENATOR HUGGINS asked Commissioner Fisher if DOA controls the
Alaska Land Mobile Radio (ALMR) system.
COMMISSIONER FISHER answered yes. He explained that ALMR sits
within the ETS.
SENATOR HUGGINS asked what the direction is for ALMR.
COMMISSIONER FISHER opined that ALMR can be improved in the way
it is operated to reduce cost. He added that located at many of
the ALMR locations is a land-based statewide telecommunications
network. He noted that DOA is looking at combining the wireless
and land-based systems to be more efficient. He said that ETS
currently relies primarily on a single vendor to supply
equipment and DOA is looking at multiple sources to procure
equipment. He summarized that DOA is looking at ways to reducing
ETS's telecommunications maintenance costs. He disclosed that
ALMR is considering input that ALMR is the wrong approach all
together. He noted that the state and federal government has
spent a few hundred million dollars building ALMR system. He
said that DOA is looking at alternatives to ALMR. He conceded
that he cannot recommend an alternative system for the state to
consider.
9:20:42 AM
COMMISSIONER FISHER said the final three agencies that DOA has
are the Division of Administrative Services (DAS), the Division
of Risk Management (DRM), and the Office of Administrative
Hearings. He explained that DAS provides DOA with budgeting and
financial services, and DRM manages the insurance for the
administration of state assets.
9:21:11 AM
COMMISSIONER FISHER addressed DOA's budget by division. He
revealed that a large percentage of DOA's budget comes from
interagency transfer where other agencies pay DOA to provide
services. He detailed that DOA has approximately $88 million of
general funds. He reiterated that OPA and PDA account for nearly
$50 million and reductions were moderate, resulting in cost
reductions being spread out over DOA's remaining divisions.
He specified that ETS received the largest percentage reduction
due to a successful renegotiation in 2014 for a core contract
that forecasted substantial savings, as well as improved
efficiencies from the State of Alaska Telecommunication Systems
(SATS) and ALMR.
CHAIR STOLTZE asked the commissioner to address the strategy for
budget percentage reductions rather than addressing agencies
that might not be an appropriate government function. He
asserted that straight across-the-board cuts are the friend of
people with a less defensible program. He pointed out that
Commissioner Fisher has a business philosophy and opined that
the only way to really get to budget reductions is vertical
rather than horizontal.
9:23:47 AM
COMMISSIONER FISHER answered that he agrees. He stated that the
budget mandate that came to DOA is the same as the one that went
to most departments. He said that DOA cut approximately 8
percent from its budget. He remarked that he is not
uncomfortable with DOA's budget or the challenge. He asserted
that the current budget is the first step with additional cuts
required and more right-sizing to do.
CHAIR STOLTZE concurred that the initial cuts are a start. He
pointed out that Commissioner Fisher has a business, rather than
a government, background.
9:25:19 AM
COMMISSIONER FISHER stated that what he has said to a number of
people is, "What we choose to do and what we choose not to do
are important decisions." He asserted that most of DOA's
services really are services to other agencies. Its budget and
scaling down has to be done in collaboration with other
departments. He admitted that hard decisions have to be made
whether to support everything that is currently on the plate.
COMMISSIONER FISHER pointed out that divisions that were funded
by receipts with no general funds did not receive a cut. He
stated that DOA, as an organization, continues to look at how
the department reduces cost; as an example, lease costs are
funded by interagency transfers rather than general funds. DOA
is looking at a number of options and evaluating its entire
lease portfolio to come up proposals to reduce costs. He
summarized that DOA has an ongoing focus in reducing overall
costs in all of its divisions.
9:28:06 AM
COMMISSIONER FISHER said DOA believes it has core challenges and
areas where the state needs to focus some attention. He declared
that DOA has a leadership role in personnel costs savings,
reduction of unfunded liability, procurement savings,
information technology (IT), and improving facility management.
He explained that personnel cost savings encompass budget cuts
that include reducing personnel. He added that the state spends
a fair amount of money on healthcare, both for retirees and for
active employees. DOA is actively looking at how to reduce
healthcare costs. He said equally important, but more difficult
to actually execute, is improving employee productivity. He
asserted that there are a number of techniques that DOA is
starting to develop, such as better management of current
employees and redesigning processes to increase efficiency. He
said DOA is becoming more effective and efficient during the
right-sizing process.
He addressed the reduction of unfunded liability and explained
that for reduced healthcare costs, specifically with the
retirees, savings will be realized with the unfunded liability.
He revealed that the state spends approximately $1.9 billion on
goods and services. He remarked that even a modest decline of 5
to 10 percent in procurement costs will yield $100 million to
$200 million in savings. He stated that there is a lot of
opportunity to drive some savings in procurements.
He disclosed that IT services are fairly fractured across the
state in how they are delivered. He revealed that DOA is working
on strategies to improve IT services and deliver a better
service at a lower cost.
He pointed out that DOA is working on improving facility
management and noted previously mentioned space standards as one
solution. He stated that DOA will be looking at reducing
maintenance costs while preserving building integrity. He added
that lease costs will also be addressed.
9:31:18 AM
CHAIR STOLTZE said that he will ask questions regarding
personnel cost savings from wage and contract negotiations.
9:31:33 AM
COMMISSIONER FISHER addressed a list of various bargaining units
that DOPLR works with. He revealed that three contracts expire
in June. He noted that DOPLR has reached a tentative agreement
with the Alaska Correctional Officers Association (ACOA). He
said that there are two contracts from 2014 that DOPLR has not
finalized: Marine Engineers' Beneficial Association (MEBA) and
the Masters, Mates and Pilots (MMP).
CHAIR STOLTZE asked to verify that not all of the contract
negotiations pertain to wages or cost increases. He pointed out
that some contract negotiations relate to pension issues and
other ancillary items that are critical parts of budget drivers
with potential cost savings.
COMMISSIONER FISHER added that contract negotiations include
healthcare and trust accounts.
CHAIR STOLTZE said as DOA cuts the budget for a sustainable
level, there are previously negotiated built-in escalators for
percentage increases. He remarked that cost reductions may be
obliterated by contracted escalator increases.
9:33:17 AM
COMMISSIONER FISHER agreed and said they have had discussions
with bargaining units to address escalators. At this state, they
have not reached agreement.
CHAIR STOLTZE noted there could be potential freezes. He asked
if the department or the executive has the legal authority to
authorize freezes.
COMMISSIONER FISHER understood that escalators for the non-
represented employees are defined in statute. The escalators for
represented employees are governed by bargaining agreements. He
opined that the department does not have the unilateral right to
freezes, absent negotiation or legislation.
CHAIR STOLTZE noted that he was not trying to authorize a
freeze, but rather ask for clarification.
9:35:02 AM
SENATOR HUGGINS asked about contract negotiation parameters.
COMMISSIONER FISHER specified that a team from DOA meets with
the union and appropriate departments and makes a
recommendation. He said his focus is on making employees
productive.
9:36:55 AM
SENATOR HUGGINS asked how the Governor's Office is involved.
COMMISSIONER FISHER answered that they work with the Governor or
his designee.
SENATOR HUGGINS asked who the designee is.
COMMISSIONER FISHER said they are in the process of finalizing
the negotiation strategy and meetings are scheduled for next
week. He expected it would be the Governor or his chief of
staff.
SENATOR HUGGINS thought Alaskans should understand the process.
CHAIR STOLTZE recalled that the last commissioner was pro-active
regarding cost containment. He asked if there is more to do in
that area.
9:38:21 AM
COMMISSIONER FISHER noted he is working on two escalators, the
step progression and cost of living allowance. They represent a
significant expense over the life of an employee. He said he is
trying to determine the level of allowance for benefits. He
reiterated that productivity is a bigger driver of cost to the
state than cash.
CHAIR STOLTZE mentioned leave bank reforms.
COMMISSIONER FISHER said he would get back to the committee on
that.
9:40:22 AM
SENATOR WIELECHOWSKI joined the committee meeting.
CHAIR STOLTZE asked what some of the typical average salaries
are in each classification.
9:42:26 AM
COMMISSIONER FISHER noted that the original presentation
contained that information. He offered to provide that
information. He stated that the range is between $50,000 and
$100,000.
CHAIR STOLTZE noted there were some higher salaries.
COMMISSIONER FISHER agreed. He said those are unusual.
9:43:35 AM
SENATOR HUGGINS noted contracts that were negotiated during
higher oil prices. He asked how contracts are determined during
times of low prices.
COMMISSIONER FISHER answered that discussions occurred yesterday
on re-negotiating past contract increases. He thought it
important that everyone share the pain.
9:45:09 AM
COMMISSIONER FISHER addressed the cost of health insurance and
the dramatic increase recently. He credited the prior
administration with starting to reduce costs. It has been
difficulty with the change in plan administration and there is
concern by retirees regarding the administration of the plan.
The department is examining that and will make adjustments. The
state has saved at least $44 million due to the change. He
suggested there are more ways to continue to drive down health
care costs.
CHAIR STOLTZE asked if Commissioner Fisher has cost containment
measures planned.
9:48:29 AM
COMMISSIONER FISHER answered yes.
CHAIR STOLTZE expected a thorough analysis of new health
coverage mandates.
COMMISSIONER FISHER stated that the department will do so to the
extent that the mandates relate to DOA. He said unfunded
mandates are a major challenge.
SENATOR WIELECHOWSKI asked about the expense of the uninsured to
Alaskans. He recalled there were over $100 million in
uncompensated insurance costs due to the uninsured. He wondered
what the current cost is and how much it would change if
Medicaid were to be expanded.
9:50:14 AM
COMMISSIONER FISHER said he does not have that information.
SENATOR WIELECHOWSKI requested that he provide that analysis.
COMMISSIONER FISHER turned to the topic of retiree health care
costs. There is an unfunded liability in the aggregate of over
$10 billion and "a dollar saved today is worth a lot more than a
dollar saved ten years from now."
CHAIR STOLTZE asked if Commissioner Fisher supported changing
direction regarding TERS and PERS from a defined benefit to a
defined contribution.
9:51:38 AM
COMMISSIONER FISHER answered that there are alternatives that
the department is considering that could potentially provide a
better retirement opportunity for employees without increasing
costs or risk to the state. An example is a combination of
defined benefit and defined contribution.
CHAIR STOLTZE commented on the current philosophy.
9:53:14 AM
COMMISSIONER FISHER addressed the effect of the $3 billion
deposited into the PERS/TRS account last year.
COMMISSIONER FISHER related that there are ways to improve
purchasing, such as by using IRIS.
CHAIR STOLTZE commented that state tends to make mistakes when
purchasing technology. He asked the commissioner if he has any
suggestions for improvement.
COMMISSIONER FISHER noted his concern about that.
CHAIR STOLTZE asked if the state has the ability to make good
business decisions.
9:56:29 AM
COMMISSIONER FISHER stated that the key to improvement is Scot
Arehart, the director of the Division of Finance, who has the
knowledge of the requirements and testing trials for the
project. He was optimistic about a successful July launch.
SENATOR COGHILL asked the Commissioner to look for statutory
barriers on procurement regarding the attempt to get the lowest
cost for the best value.
COMMISSIONER FISHER offered to do so. He related that there is
sufficient money and resources for a more successful IT system
statewide. He said he intends to look at barriers to
implementation.
9:59:48 AM
COMMISSIONER FISHER said the real challenge in a centralized
versus a de-centralized system is to try and identify those
services that are commodity services where specific agency
requirements are not the dominating feature of the service and
centralizing those commodity-like functions and driving the cost
down and delivering them in the most efficient and cost-
effective way, while still leaving the ability for a department
to have a business-use specific service or capability that is
unique to that department, which then would not be commoditized,
but still be delivered specifically in that department. It is a
balance between cost and efficiency in meeting the business
department's needs.
SENATOR COGHILL voiced interest in maintaining core services.
10:02:16 AM
COMMISSIONER FISHER showed the list of buildings the state owns
or leases. The department is currently looking at how the state
uses and manages its own facilities and the expenses of leased-
versus-owned buildings.
SENATOR COGHILL noted that money has gone into energy
efficiencies for state facilities. He asked the status of that
funding, as well as that of deferred maintenance.
10:04:19 AM
COMMISSIONER FISHER, in response to a question from Senator
Coghill, addressed leasehold improvements and the cost benefit
analysis of them.
10:04:46 AM
COMMISSIONER FISHER opined that universal space standards is a
strategy that has value to the state.
CHAIR STOLTZE noted sensitive information in the tax division
and the need for privacy.
COMMISSIONER FISHER said he was not familiar with that issue,
but he has heard that there may be a need for adjustments in
space standards related to privacy issues. The goal is to help
people be efficient at the lowest cost. He noted they try to
make sure there are conference rooms for privacy.
10:06:47 AM
SENATOR HUGGINS asked about license plates that are excluded
from the ability to have permanent registration.
COMMISSIONER FISHER offered to look into it.
10:08:34 AM
SENATOR WIELECHOWSKI asked why the manufacturing of licenses is
shipped out of Alaska.
COMMISSIONER FISHER said he would find out.
10:10:00 AM
At ease
SB 36-ELECTRONIC DISTRIB. OF REPORTS/NOTICES
10:13:18 AM
CHAIR STOLTZE called the committee back to order and announced
the consideration of SB 36.
10:13:37 AM
SENATOR CATHY GIESSEL, Alaska State Legislature, sponsor of SB
36, related that SB 36 would save the state $500,000 a year and
it would also save local governments money. It costs Anchorage
$25,000 to publish their annual notice of foreclosures and from
$50,000 to $80,000 to publish notice documents. The bill would
allow municipalities and the state to use electronic noticing
for those publications.
She said the bill has been previously offered and the opposition
brought up the amount of money they would lose. She asked the
committee to consider the budget climate.
10:15:26 AM
JANE CONWAY, Staff, Senator Giessel, Alaska State Legislature,
provided an overview of SB 36 on behalf of the sponsor:
Section 1 grants municipalities the authority to pass
an ordinance that will allow electronic notice to
taxpayers on the municipality's public Internet
website instead of newspaper publication of the amount
of state aid a municipality receives and the millage
equivalent.
Section 2 allows a municipality to meet notice
requirements by posting its foreclosure list for
delinquent taxes on the municipality's public Internet
website.
Section 3 allows a municipality to electronically post
notice that the redemption period following
foreclosure will expire in 30 days on its public
Internet website.
Section 4 requires the lieutenant governor to include
certain reports of state agencies on the Alaska Online
Public Notice System.
Section 5 creates a new article requiring electronic
production and distribution of agency reports if the
agency has the technological capability to do so. It
requires that reports must be posted for one year or
until superseded. It creates exceptions where printing
is required by other law, agreement or when a printed
copy is requested. It allows electronic distribution
to fulfill any agency obligation to publish, prepare,
present, or submit a report. It clarifies that print
copies of reports may be requested from a library
distribution and data access center. It bars a state
agency from hiring a contractor to provide photographs
or graphics for a report, unless no agency employee to
perform the work is available, or the agency would use
fewer state resources by hiring a contractor. It
defines "report" and "state agency."
10:17:48 AM
CHAIR STOLTZE opened public testimony.
10:19:15 AM
ROBIN WARD, Acting Director, Real Estate Department,
Municipality of Anchorage, testified in support of SB 36. She
voiced appreciation for the provisions in the bill that would
allow all municipalities the option to publish foreclosure
notices on line in a local new publication. She said many more
property owners are accessing online notices. She pointed out
savings to the municipality from the passage of the bill. She
noted the cost gets passed down to the property owner.
10:21:24 AM
SENATOR WIELECHOWSKI pointed out that lower-income constituents
sometimes don't have computers or access to computers. He asked
what parts of town the printed notices were going to.
MS. WARD said it depends on who has the lowest bid for a local
newspaper distribution.
10:23:00 AM
LINDA THIBODEAU, Director, Division of Libraries, Archives, and
Museums, Department of Education and Early Development (DEED),
presented information related to SB 36. She said the state
library that is referenced in Sections 4 and 5 is in the
division. The bill works for the state library and mechanisms
are already in place to distribute notices to patrons
electronically or in print through inter-library loan.
CHAIR STOLTZE added that it is an access point for the public.
SENATOR COGHILL noted the cultural change to electronic
postings. He asked if there is a way of tracking the number of
viewers.
MS. THIBODEAU replied that they see a lot of access to online
state documents. She said she could get the percentages of
viewers.
SENATOR COGHILL addressed a concern with a new system of access.
10:25:10 AM
MS. THIBODEAU specified that Sections 1 - 3 of the bill do not
related to the state library; only Sections 4 and 5 do.
CHAIR STOLTZE speculated that the viewers are those looking at
others' property, not their own.
CHAIR STOLTZE questioned the fiscal note.
10:26:35 AM
CRAIG KAHKLEN, Policy Analyst, Office of Budget and Management,
Office of the Governor, answered questions related to SB 36. He
explained that the fiscal note shows a savings of $450,000 but
does not include one department's information, so the total is
closer to $500,000.
SENATOR COGHILL asked if information will be added to their
existing platform.
MR. KAHKLEN said the plan is to use the Lieutenant Governor's
electronic distribution system.
SENATOR COGHILL wondered if the information would be easy to
find.
10:28:33 AM
RUSTAN BURTON, Publisher, Juneau Empire, testified in opposition
to SB 36. He discussed the contrasting issues SB 36 provides for
the Juneau Empire; public notices and profit. He addressed
Section 4 that deals with administrative documents, which he
said he does not take issue with except for the definition of
"public." He said he does have concerns about posting
municipality legal notices online. He maintained that a website
would not be a good venue for those. He shared information about
legislation in other states that tried to deal with legal
notices, all of which failed. He maintained that the public has
a right to know what their government is doing and those notices
belong in newspapers. People do not access government websites
for information.
10:33:30 AM
MR. BURTON addressed data from New Jersey that showed posting
notices online would not save money and does not provide third-
party oversight. He concluded that lack of public access is the
most important reason to not publish public notices online.
Newspapers are good at mass media.
10:37:22 AM
SENATOR COGHILL commented that newspapers are becoming more
electronic. He asked about the notification process for online
public notices and if they would be easy to access.
MR. BURTON answered that depends on available resources. He said
very few people spend much time on those pages; print is easier
to browse for notices. He stressed that print is not dying.
10:40:01 AM
KATHIE WASSERMAN, Executive Director, Alaska Municipal League,
testified in support of SB 36. She noted the bill provides
choices for notification for municipalities. She maintained that
newspapers need to react to concerns of their residents.
CHAIR STOLTZE left public testimony open and held SB 36 in
committee.
10:42:35 AM
There being no further business to come before the committee,
Chair Stoltze adjourned the Senate State Affairs Standing
Committee hearing at 10:42 a.m.