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HB 190: "An Act establishing a violation for hindering the Alaska Sunset Commission; relating to the duties of the legislature; establishing the Alaska Sunset Commission to review and make recommendations on discontinuation of or changes to state entities; relating to the powers and duties of the Alaska Sunset Commission; and providing for an effective date."

00 HOUSE BILL NO. 190 01 "An Act establishing a violation for hindering the Alaska Sunset Commission; relating 02 to the duties of the legislature; establishing the Alaska Sunset Commission to review and 03 make recommendations on discontinuation of or changes to state entities; relating to the 04 powers and duties of the Alaska Sunset Commission; and providing for an effective 05 date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 11.56.845 is amended to read: 08 Sec. 11.56.845. Hindering the Legislative Budget and Audit Committee or 09 the Alaska Sunset Commission. (a) A person commits hindering the Legislative 10 Budget and Audit Committee or the Alaska Sunset Commission established in 11 AS 44.99.700 if the person intentionally (1) fails to give, or (2) directs, orders, 12 threatens, restrains, coerces, forces, or prevents another person from giving, full 13 cooperation to the legislative auditor, [OR] the legislative fiscal analyst, or a member

01 or employee of the Alaska Sunset Commission in assembling or furnishing 02 requested information to the committee, [OR] its staff, or the Alaska Sunset 03 Commission, and the person did not reasonably believe that the action or failure to act 04 was legally justified. 05 (b) Hindering the Legislative Budget and Audit Committee or the Alaska 06 Sunset Commission is a violation, punishable by a fine of not more than $5,000. 07 * Sec. 2. AS 39.25.020(b) is amended to read: 08 (b) Unless a waiver is granted by the commissioner of administration, an 09 appointing authority may not appoint a person to state service if the person has been 10 convicted under AS 11.56.845. Before granting a waiver under this subsection, the 11 commissioner shall give notice in writing to the Legislative Budget and Audit 12 Committee or the Alaska Sunset Commission established in AS 44.99.700, as 13 applicable, of the intent to grant a waiver. 14 * Sec. 3. AS 39.25.080(b) is amended to read: 15 (b) The following information is available for public inspection, subject to 16 reasonable regulations on the time and manner of inspection: 17 (1) the names and position titles of all state employees; 18 (2) the position held by a state employee; 19 (3) prior positions held by a state employee; 20 (4) whether a state employee is in the classified, partially exempt, or 21 exempt service; 22 (5) the dates of appointment and separation of a state employee; 23 (6) the compensation authorized for a state employee; and 24 (7) whether a state employee has been dismissed or disciplined for a 25 violation of AS 39.25.160(l) (interference or failure to cooperate with the Legislative 26 Budget and Audit Committee or the Alaska Sunset Commission established in 27 AS 44.99.700). 28 * Sec. 4. AS 39.25.160(l) is amended to read: 29 (l) A state employee may not intentionally (1) fail to give, or (2) direct, order, 30 threaten, restrain, coerce, force, or prevent another person from giving, full 31 cooperation to the legislative auditor or the legislative fiscal analyst in assembling or

01 furnishing requested information to the Legislative Budget and Audit Committee or 02 the Alaska Sunset Commission established in AS 44.99.700, or their [ITS] staff, if 03 the person did not reasonably believe that the action or failure to act was legally 04 justified. Violation of this subsection constitutes just cause for dismissal or other 05 appropriate disciplinary action. 06 * Sec. 5. AS 39.90.140(3) is amended to read: 07 (3) "matter of public concern" means 08 (A) a violation of a state, federal, or municipal law, regulation, 09 or ordinance; 10 (B) a danger to public health or safety; 11 (C) gross mismanagement, a substantial waste of funds, or a 12 clear abuse of authority; 13 (D) a matter accepted for investigation by the office of the 14 ombudsman under AS 24.55.100 or 24.55.320; or 15 (E) interference or any failure to cooperate with an audit or 16 other matter within the authority of Legislative Budget and Audit Committee 17 or the Alaska Sunset Commission established in AS 44.99.700; 18 * Sec. 6. AS 40.25.220(2) is amended to read: 19 (2) "public agency" means a political subdivision, department, 20 institution, board, commission, division, authority, public corporation, council, 21 committee, or other instrumentality of the state or a municipality; "public agency" 22 includes the University of Alaska, [AND] the Alaska Railroad Corporation, and the 23 Alaska Sunset Commission established in AS 44.99.700; 24 * Sec. 7. AS 44.99 is amended by adding new sections to read: 25 Article 7. Alaska Sunset Commission. 26 Sec. 44.99.700. Establishment of commission; composition. (a) The Alaska 27 Sunset Commission is established in the office of the lieutenant governor. 28 (b) The commission consists of three members appointed by the governor, two 29 members appointed by the president of the senate, and two members appointed by the 30 speaker of the house of representatives. Members shall be qualified in financial 31 management, budgeting, economics, business operations, process improvement, or

01 government efficiency. 02 (c) Members appointed under (b) of this section 03 (1) serve staggered terms of five years until reappointed or replaced; 04 and 05 (2) may be reappointed. 06 (d) If a member appointed under (b) of this section no longer meets the 07 requirements under (b) of this section or if a vacancy exists among those members for 08 any reason other than the expiration of a member's term, the appointing authority 09 shall, within 30 days after the occurrence of the vacancy, make an appointment for the 10 unexpired portion of the term, effective immediately. An appointment made under this 11 subsection to fill an unexpired term must comply with the requirements under (b) of 12 this section. 13 (e) The commission shall select a chair from among its members. Five 14 members of the commission constitute a quorum. The commission may take action 15 upon the affirmative vote of five members of the commission. 16 (f) The commission may employ staff, and retain consultants as the 17 commission determines necessary, to perform its duties. Staff shall possess 18 administrative expertise and expertise in financial management, business operations, 19 process improvement, and government efficiency. 20 (g) Members of the commission serve without compensation but are entitled 21 to per diem and travel expenses authorized for boards and commissions under 22 AS 39.20.180. The members of the commission shall comply with AS 39.50. 23 Sec. 44.99.710. Powers and duties of the commission. (a) The commission 24 shall 25 (1) review the activities of each entity listed in AS 44.99.730; 26 (2) consider whether there is a public need for continuation of an entity 27 or for the performance of the functions of an entity listed in AS 44.99.730 and make a 28 recommendation to the legislature to continue, discontinue, restructure, or transfer the 29 duties and programs of the entity; and 30 (3) prepare a report and draft legislation required under AS 44.99.750. 31 (b) The commission may require all state officials and agencies of the state to

01 give full cooperation to the commission and its staff in assembling and furnishing the 02 information necessary to prepare a report under (a) of this section, including allowing 03 the commission to interview staff relating to work duties, processes, and products. 04 (c) In carrying out its functions under AS 44.99.700 - 44.99.759, the 05 commission or designated staff may attend any meetings and proceedings of any entity 06 of the state, including any meeting or proceeding of a governing body of a state entity 07 that is closed to the public, and may inspect the records, documents, and files of any 08 entity of the state, including any record, document, or file that is 09 (1) attorney work product; 10 (2) an attorney-client communication; or 11 (3) made privileged or confidential by law. 12 Sec. 44.99.720. State entity's report to the commission. (a) Not later than 13 September 1 of the calendar year before the year in which an entity of the state subject 14 to AS 44.99.700 - 44.99.759 is scheduled for review under AS 44.99.730, the state 15 entity shall report to the commission 16 (1) the extent to which the entity has met the criteria in AS 44.99.740; 17 (2) a list of each report that the entity is required by law to prepare and 18 an evaluation of the need for each report based on whether factors or conditions have 19 changed since the date the requirement to prepare the report was enacted; and 20 (3) any other information that the entity considers appropriate or that is 21 requested by the commission. 22 (b) The entity shall submit the report in electronic format, as required by the 23 commission. 24 (c) A state entity that provides the commission with access to a privileged or 25 confidential communication, record, document, or file for purposes of a review under 26 AS 44.99.700 - 44.99.759 does not waive the attorney-client privilege, or any other 27 privilege or confidentiality with respect to the communication, record, document, or 28 file provided to the commission. For purposes of this subsection, a communication 29 includes a discussion that occurs at a meeting or proceeding of the state entity that is 30 closed to the public. 31 Sec. 44.99.730. Review of state entities. (a) The first review of an entity listed

01 below shall occur in the calendar year set out after the name of the entity, and 02 subsequent reviews of each entity shall occur not less than every 12 years. The entities 03 subject to review under AS 44.99.700 - 44.99.759 are as follows: 04 (1) Department of Health (2024); 05 (2) Department of Family and Community Services (2024); 06 (3) Department of Administration (2025); 07 (4) Department of Law (2026); 08 (5) Department of Revenue (2027); 09 (6) Department of Education and Early Development (2028); 10 (7) Department of Labor and Workforce Development (2029); 11 (8) Department of Commerce, Community, and Economic 12 Development (2030); 13 (9) Department of Military and Veterans' Affairs (2031); 14 (10) Department of Natural Resources (2031); 15 (11) Department of Fish and Game (2032); 16 (12) Department of Public Safety (2032); 17 (13) Department of Transportation and Public Facilities (2032); 18 (14) Department of Environmental Conservation (2033); 19 (15) Department of Corrections (2033); 20 (16) University of Alaska (2035). 21 (b) The review of each entity listed in (a) of this section must include a review 22 of any public corporation, board or commission, or other instrumentality of the state 23 that is established within the entity and a review of any committee, task force, or other 24 group that is established by law or by the entity for the purpose of advising or 25 otherwise assisting the entity. 26 Sec. 44.99.740. Criteria for review. (a) In considering whether there is a 27 public need for continuation or restructuring of an entity listed in AS 44.99.730 or for 28 the performance of the functions of an entity listed in AS 44.99.730, the commission 29 shall consider the following criteria: 30 (1) the extent to which the missions established under AS 37.07.014 of 31 the entity have been carried out;

01 (2) whether the performance measurements set out in AS 37.07 are 02 appropriately set and are being met by supporting data; 03 (3) whether there is an alternative method of delivery of service to 04 better meet performance requirements; 05 (4) the extent to which the entity is organized in a manner that is 06 conducive to process improvement; 07 (5) the extent to which process improvement could benefit the entity; 08 (6) the efficiency with which the entity operates; 09 (7) if there is overlap of services with other entities, the extent to 10 which there is potential for reorganization; 11 (8) the extent to which the entity is making it difficult for persons to do 12 business with the state; 13 (9) the extent to which changes are necessary in the enabling statutes 14 of the entity so that the entity can comply with or meet the desired results established 15 by the legislature under AS 37.07.014; 16 (10) other standards established by the commission. 17 (b) By September 1 of the year of review for an entity, the commission shall 18 provide notice of and hold one or more public hearings concerning the application of 19 the criteria listed in (a) of this section to each entity being reviewed by the 20 commission. At a public hearing, the commission shall accept testimony from the 21 public and from a person involved in the administration of the entity subject to the 22 review. 23 Sec. 44.99.750. Report by commission. (a) Following review of an entity 24 under AS 44.99.730, the commission shall prepare a report on the results of the review 25 of the entity, a summary of comments received at the public hearing on the entity, and 26 a recommendation to the legislature to continue, discontinue, restructure, or transfer 27 the duties and programs of an entity. The report must be based on the criteria listed in 28 AS 44.99.740 and other factors the commission considers appropriate. The report must 29 be delivered to the governor, the president of the senate, the speaker of the house of 30 representatives, the chief clerk, and the senate secretary within the first 10 days of a 31 legislative session following the calendar year of the review. A copy of the report must

01 be delivered to every member of the legislature. The commission shall include in the 02 report draft legislation to implement the recommendations of the commission. Draft 03 legislation must be submitted to the rules committee of each house with a request to 04 introduce the legislation to implement the recommendations of the commission. 05 (b) If the commission recommends the discontinuation of an entity, the report 06 must include a recommendation on the length of a winding-down period for the entity 07 to conclude its business and proposed procedures for transferring the entity's records. 08 If the commission recommends the restructuring of an entity, the report must include a 09 recommended restructuring plan. 10 (c) If the recommendations of the commission under (a) of this section are not 11 implemented by law, an entity listed in AS 44.99.730(a) will expire on June 30 of the 12 fiscal year following review of the entity by the commission. 13 Sec. 44.99.759. Definitions. In AS 44.99.700 - 44.99.759, 14 (1) "commission" means the Alaska Sunset Commission; 15 (2) "entity" includes a department, division, board, authority, 16 corporation, or other unit of state government and the University of Alaska. 17 * Sec. 8. AS 08.03.020(b); AS 24.20.231(7), 24.20.271(2), 24.20.311(b); AS 44.66.020, 18 44.66.040, 44.66.050, and 44.66.070(2) are repealed. 19 * Sec. 9. Section 11, ch. 19, SLA 2013, is repealed. 20 * Sec. 10. Section 9 of this Act takes effect immediately under AS 01.10.070(c).