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CSHB 190(STA): "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; and relating to the powers and duties of the Alaska Sunset Commission."

00 CS FOR HOUSE BILL NO. 190(STA) 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; and relating to 04 the powers and duties of the Alaska Sunset Commission." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 11.56.845 is amended to read: 07 Sec. 11.56.845. Hindering the Legislative Budget and Audit Committee or 08 the Alaska Sunset Commission. (a) A person commits hindering the Legislative 09 Budget and Audit Committee or the Alaska Sunset Commission established in 10 AS 44.99.700 if the person intentionally (1) fails to give, or (2) directs, orders, 11 threatens, restrains, coerces, forces, or prevents another person from giving, full 12 cooperation to the legislative auditor, [OR] the legislative fiscal analyst, or a member 13 or employee of the Alaska Sunset Commission in assembling or furnishing 14 requested information to the committee, [OR] its staff, or the Alaska Sunset

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

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

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

01 information necessary to prepare a report under (a) of this section, including allowing 02 the commission to interview staff relating to work duties, processes, and products. 03 (c) In carrying out its functions under AS 44.99.700 - 44.99.759, the 04 commission or designated staff may attend any meetings and proceedings of any entity 05 of the state, including any meeting or proceeding of a governing body of a state entity 06 that is closed to the public, and may inspect the books, accounts, reports, or other 07 records, whether confidential or not, of any entity of the state. 08 (d) The commission has the power to hold public hearings, administer oaths, 09 issue subpoenas, compel the attendance of witnesses and production of papers, books, 10 accounts, documents, and testimony, and have the deposition of witnesses taken in a 11 manner prescribed by court rule or law for taking depositions in civil actions. 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. In this subsection, "communication" includes a 29 discussion that occurs at a meeting or proceeding of the state entity that is closed to 30 the public. 31 Sec. 44.99.730. Review of state entities. (a) The commission shall review at

01 least one principal department and its entities or the University of Alaska and its 02 entities each year. 03 (b) The review under (a) of this section must include a review of any public 04 corporation, board or commission, or other instrumentality of the state that is 05 established within the department or University of Alaska and a review of any 06 committee, task force, or other group that is established by law or by the department or 07 university to advise or assist the department or university. 08 Sec. 44.99.740. Criteria for review. (a) In considering whether there is a 09 public need for continuation or restructuring of an entity reviewed under AS 44.99.730 10 or for the performance of the functions of an entity reviewed under AS 44.99.730, the 11 commission shall consider the following criteria: 12 (1) the extent to which the missions established under AS 37.07.014 of 13 the entity have been carried out; 14 (2) whether the performance measurements set out in AS 37.07 are 15 appropriately set and are being met by supporting data; 16 (3) whether there is an alternative method of delivery of service to 17 better meet performance requirements; 18 (4) the extent to which the entity is organized in a manner that is 19 conducive to process improvement; 20 (5) the extent to which process improvement could benefit the entity; 21 (6) the efficiency with which the entity operates; 22 (7) if there is overlap of services with other entities, the extent to 23 which there is potential for reorganization; 24 (8) the extent to which the entity is making it difficult for persons to do 25 business with the state; 26 (9) the extent to which changes are necessary in the enabling statutes 27 of the entity so that the entity can comply with or meet the desired results established 28 by the legislature under AS 37.07.014; 29 (10) other standards established by the commission. 30 (b) By September 1 of the year of review for an entity, the commission shall 31 provide notice of and hold one or more public hearings on the interconnected state

01 road system concerning the application of the criteria listed in (a) of this section to 02 each entity being reviewed by the commission. At a public hearing, the commission 03 shall accept testimony from the public and from a person involved in the 04 administration of the entity subject to the review. 05 Sec. 44.99.750. Report by commission. (a) Following review of an entity 06 under AS 44.99.730, the commission shall prepare a report on the results of the review 07 of the entity, a summary of comments received at the public hearing on the entity, and 08 a recommendation to the legislature to continue, discontinue, restructure, or transfer 09 the duties and programs of an entity. The report must be based on the criteria listed in 10 AS 44.99.740 and other factors the commission considers appropriate. Unless 11 confidentiality is expressly waived by the entity of the state, the report may not 12 contain any confidential information obtained by the commission under 13 AS 44.99.710(c). The report must be delivered to the governor, the president of the 14 senate, the speaker of the house of representatives, the chief clerk, and the senate 15 secretary within the first 10 days of a legislative session following the calendar year of 16 the review. A copy of the report must be delivered to every member of the legislature. 17 The commission shall include in the report draft legislation to implement the 18 recommendations of the commission. Draft legislation must be submitted to the rules 19 committee of each house with a request to introduce the legislation to implement the 20 recommendations of the commission. 21 (b) If the commission recommends the discontinuation of an entity, the report 22 must include a recommendation on the length of a winding-down period for the entity 23 to conclude its business and proposed procedures for transferring the entity's records. 24 If the commission recommends the restructuring of an entity, the report must include a 25 recommended restructuring plan. 26 (c) If the recommendations of the commission under (a) of this section are not 27 implemented by law, an entity reviewed under AS 44.99.730(a) will expire on June 30 28 of the fiscal year following review of the entity by the commission. 29 Sec. 44.99.759. Definitions. In AS 44.99.700 - 44.99.759, 30 (1) "commission" means the Alaska Sunset Commission; 31 (2) "entity" includes a department, division, board, authority,

01 corporation, or other unit in the executive branch of state government and the 02 University of Alaska, but does not include an agency in the judicial or legislative 03 branch of state government.