SB 9: "An Act establishing a violation for hindering the Alaska Sunset Commission; relating to the Legislative Budget and Audit Committee; relating to the duties of the legislature; relating to the legislative audit division and the legislative finance division; 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 SENATE BILL NO. 9 01 "An Act establishing a violation for hindering the Alaska Sunset Commission; relating 02 to the Legislative Budget and Audit Committee; relating to the duties of the legislature; 03 relating to the legislative audit division and the legislative finance division; establishing 04 the Alaska Sunset Commission to review and make recommendations on discontinuation 05 of or changes to state entities; relating to the powers and duties of the Alaska Sunset 06 Commission; and providing for an effective date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. AS 11.56.845 is amended to read: 09 Sec. 11.56.845. Hindering the Legislative Budget and Audit Committee or 10 the Alaska Sunset Commission. (a) A person commits hindering the Legislative 11 Budget and Audit Committee or the Alaska Sunset Commission established in 12 AS 44.99.700 if the person intentionally (1) fails to give, or (2) directs, orders, 13 threatens, restrains, coerces, forces, or prevents another person from giving, full
01 cooperation to the legislative auditor, [OR] the legislative fiscal analyst, or a member 02 or employee of the Alaska Sunset Commission in assembling or furnishing 03 requested information to the committee, [OR] its staff, or the Alaska Sunset 04 Commission, and the person did not reasonably believe that the action or failure to act 05 was legally justified. 06 (b) Hindering the Legislative Budget and Audit Committee or the Alaska 07 Sunset Commission is a violation, punishable by a fine of not more than $5,000. 08 * Sec. 2. AS 24.08.060(b) is amended to read: 09 (b) Bills introduced by the legislative council shall be delivered with a letter of 10 explanation to the rules committee of either house and bear the inscription "Rules 11 Committee by Request of the Legislative Council"; bills introduced by the Legislative 12 Budget and Audit Committee shall be delivered with a letter of explanation to the 13 rules committee of either house and bear the inscription "Rules Committee by Request 14 of the Legislative Budget and Audit Committee"; bills presented by the governor shall 15 be delivered with a letter to the rules committee of either house and bear the 16 inscription "Rules Committee by Request of the Governor"; bills introduced by the 17 Alaska Sunset Commission shall be delivered with a letter of explanation to the 18 rules committee of either house and bear the inscription "Rules Committee by 19 Request of the Alaska Sunset Commission"; bills so presented and inscribed shall 20 be received as bills carrying the approval of the governor as to policy and budget 21 impact. The governor may submit a statement of purpose and effect with each bill and 22 appear personally or through a representative before any committee considering 23 legislation. 24 * Sec. 3. AS 24.20.206 is amended to read: 25 Sec. 24.20.206. Duties. The Legislative Budget and Audit Committee shall 26 (1) annually review the long-range operating plans of all agencies of 27 the state that perform lending or investment functions; 28 (2) review periodic reports from all agencies of the state that perform 29 lending or investment functions; 30 (3) prepare a complete report of investment programs, plans, 31 performance, and policies of all agencies of the state that perform lending or
01 investment functions and notify the legislature on or before the first day of each 02 regular session that the report is available; 03 (4) in conjunction with the finance committee of each house, 04 recommend annually to the legislature the investment policy for the general fund 05 surplus and for the income from the permanent fund; 06 (5) provide for an annual post audit and annual operational and 07 performance evaluation of the Alaska Permanent Fund Corporation investments and 08 investment programs; 09 (6) provide for an annual operational and performance evaluation of 10 the Alaska Housing Finance Corporation and the Alaska Industrial Development and 11 Export Authority; the performance evaluation must include, but is not limited to, a 12 comparison of the effect on various sectors of the economy by public and private 13 lending, the effect on resident and nonresident employment, the effect on real wages, 14 and the effect on state and local operating and capital budgets of the programs of the 15 Alaska Housing Finance Corporation and the Alaska Industrial Development and 16 Export Authority; 17 (7) provide assistance to the trustees of the trust established in 18 AS 37.14.400 - 37.14.450 in carrying out their duties under AS 37.14.415; 19 (8) review and prepare a report on recommendations made by the 20 Alaska Sunset Commission established in AS 44.99.700, submit the report to the 21 senate secretary and chief clerk of the house of representatives, and notify the 22 legislature that the report is available. 23 * Sec. 4. AS 39.25.020(b) is amended to read: 24 (b) Unless a waiver is granted by the commissioner of administration, an 25 appointing authority may not appoint a person to state service if the person has been 26 convicted under AS 11.56.845. Before granting a waiver under this subsection, the 27 commissioner shall give notice in writing to the Legislative Budget and Audit 28 Committee or the Alaska Sunset Commission established in AS 44.99.700, as 29 applicable, of the intent to grant a waiver. 30 * Sec. 5. AS 39.25.080(b) is amended to read: 31 (b) The following information is available for public inspection, subject to
01 reasonable regulations on the time and manner of inspection: 02 (1) the names and position titles of all state employees; 03 (2) the position held by a state employee; 04 (3) prior positions held by a state employee; 05 (4) whether a state employee is in the classified, partially exempt, or 06 exempt service; 07 (5) the dates of appointment and separation of a state employee; 08 (6) the compensation authorized for a state employee; and 09 (7) whether a state employee has been dismissed or disciplined for a 10 violation of AS 39.25.160(l) (interference or failure to cooperate with the Legislative 11 Budget and Audit Committee or the Alaska Sunset Commission established in 12 AS 44.99.700). 13 * Sec. 6. AS 39.25.160(l) is amended to read: 14 (l) A state employee may not intentionally (1) fail to give, or (2) direct, order, 15 threaten, restrain, coerce, force, or prevent another person from giving, full 16 cooperation to the legislative auditor or the legislative fiscal analyst in assembling or 17 furnishing requested information to the Legislative Budget and Audit Committee or 18 the Alaska Sunset Commission established in AS 44.99.700, or their [ITS] staff, if 19 the person did not reasonably believe that the action or failure to act was legally 20 justified. Violation of this subsection constitutes just cause for dismissal or other 21 appropriate disciplinary action. 22 * Sec. 7. AS 39.90.140(3) is amended to read: 23 (3) "matter of public concern" means 24 (A) a violation of a state, federal, or municipal law, regulation, 25 or ordinance; 26 (B) a danger to public health or safety; 27 (C) gross mismanagement, a substantial waste of funds, or a 28 clear abuse of authority; 29 (D) a matter accepted for investigation by the office of the 30 ombudsman under AS 24.55.100 or 24.55.320; or 31 (E) interference or any failure to cooperate with an audit or
01 other matter within the authority of Legislative Budget and Audit Committee 02 or the Alaska Sunset Commission established in AS 44.99.700; 03 * Sec. 8. AS 40.25.220(2) is amended to read: 04 (2) "public agency" means a political subdivision, department, 05 institution, board, commission, division, authority, public corporation, council, 06 committee, or other instrumentality of the state or a municipality; "public agency" 07 includes the University of Alaska, [AND] the Alaska Railroad Corporation, and the 08 Alaska Sunset Commission established in AS 44.99.700; 09 * Sec. 9. AS 44.99 is amended by adding new sections to read: 10 Article 7. Alaska Sunset Commission. 11 Sec. 44.99.700. Establishment of commission; composition. (a) The Alaska 12 Sunset Commission is established in the executive branch of state government. 13 (b) The commission consists of nine public members appointed by the 14 governor and confirmed by the legislature in joint session. Members shall have the 15 following qualifications: 16 (1) two members shall be certified public accountants; 17 (2) one member shall be a budget analyst; 18 (3) one member shall be a controller or comptroller; 19 (4) one member shall have experience in financial management; 20 (5) two members shall have experience as owner, chief executive 21 officer, or chief operating officer of a business based in the state; and 22 (6) two members shall have experience in finance, investment, or 23 business management. 24 (c) Members appointed under (b) of this section 25 (1) serve staggered terms of five years until reappointed or replaced; 26 and 27 (2) may be reappointed. 28 (d) If a member appointed under (b) of this section no longer meets the 29 requirements under (b) of this section or if a vacancy exists among those members for 30 any reason other than the expiration of a member's term, the governor shall, within 30 31 days after the occurrence of the vacancy, make an appointment for the unexpired
01 portion of the term, effective immediately. An appointment made by the governor 02 under this subsection to fill an unexpired term must comply with the requirements 03 under (b) of this section. 04 (e) The commission shall select a chair from among its members. Five 05 members of the commission constitute a quorum. The commission may take action 06 upon the affirmative vote of five members of the commission. 07 (f) The commission may employ staff as the commission determines necessary 08 to perform its duties. 09 (g) Members of the commission serve without compensation but are entitled 10 to per diem and travel expenses authorized for boards and commissions under 11 AS 39.20.180. The members of the commission shall comply with AS 39.50. 12 Sec. 44.99.710. Powers and duties of the commission. (a) The commission 13 shall 14 (1) review the activities of each entity listed in AS 44.99.730; 15 (2) consider whether there is a public need for continuation of an entity 16 or for the performance of the functions of an entity listed in AS 44.99.730 and make a 17 recommendation to the legislature to continue, discontinue, restructure, or transfer the 18 duties and programs of the entity; 19 (3) prepare a report under AS 44.99.750 for each entity reviewed by 20 the commission and, not later than the 10th day of the legislative session following the 21 calendar year of review, submit the report to the senate secretary and chief clerk of the 22 house of representatives, and notify the legislature that the report is available; 23 (4) make a reasonable effort, in conjunction with the Department of 24 Labor and Workforce Development, to relocate a state employee who is displaced 25 because of the discontinuation or reorganization of a state entity based on a 26 recommendation of the commission; and 27 (5) review recommendations made by the Legislative Budget and 28 Audit Committee, prepare a report on those recommendations, and submit the report 29 to the governor. 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. 02 (c) In carrying out its functions under AS 44.99.700 - 44.99.759, the 03 commission or its designated staff member may attend any meetings and proceedings 04 of any entity of the state, including any meeting or proceeding of a governing body of 05 a state entity that is closed to the public, and may inspect the records, documents, and 06 files of any entity of the state, including any record, document, or file that is 07 (1) attorney work product; 08 (2) an attorney-client communication; or 09 (3) made privileged or confidential by law. 10 Sec. 44.99.720. State entity's report to the commission. (a) Not later than 11 September 1 of the calendar year before the year in which an entity of the state subject 12 to AS 44.99.700 - 44.99.759 is scheduled for review under AS 44.99.730, the state 13 entity shall report to the commission 14 (1) the extent to which the entity has met the criteria in AS 44.99.740; 15 (2) a list of each report that the entity is required by law to prepare and 16 an evaluation of the need for each report based on whether factors or conditions have 17 changed since the date the requirement to prepare the report was enacted; and 18 (3) any other information that the entity considers appropriate or that is 19 requested by the commission. 20 (b) The entity shall submit the report in electronic format, as required by the 21 commission. 22 (c) A state entity that provides the commission with access to a privileged or 23 confidential communication, record, document, or file for purposes of a review under 24 AS 44.99.700 - 44.99.759 does not waive the attorney-client privilege, or any other 25 privilege or confidentiality with respect to the communication, record, document, or 26 file provided to the commission. For purposes of this subsection, a communication 27 includes a discussion that occurs at a meeting or proceeding of the state entity that is 28 closed to the public. 29 Sec. 44.99.730. Review of state entities. (a) The first review of an entity listed 30 below shall occur in the calendar year set out after the name of the entity, and 31 subsequent reviews of each entity shall occur not less than every 12 years. The entities
01 subject to review under AS 44.99.700 - 44.99.759 are as follows: 02 (1) Department of Health (2024); 03 (2) Department of Family and Community Services (2024); 04 (3) Office of the Governor (2025); 05 (4) Department of Administration (2025); 06 (5) Department of Law (2026); 07 (6) Department of Revenue (2027); 08 (7) Department of Education and Early Development (2028); 09 (8) Department of Labor and Workforce Development (2029); 10 (9) Department of Commerce, Community, and Economic 11 Development (2030); 12 (10) Department of Military and Veterans' Affairs (2031); 13 (11) Department of Natural Resources (2031); 14 (12) Department of Fish and Game (2032); 15 (13) Department of Public Safety (2032); 16 (14) Department of Transportation and Public Facilities (2032); 17 (15) Department of Environmental Conservation (2033); 18 (16) Department of Corrections (2033); 19 (17) Alaska State Legislature and agencies in the legislative branch of 20 government (2034); 21 (18) University of Alaska (2035); 22 (19) Alaska Court System and agencies in the judicial branch of 23 government (2036). 24 (b) The review of each entity listed in (a) of this section must include a review 25 of any public corporation, board or commission, or other instrumentality of the state 26 that is established within the entity and a review of any committee, task force, or other 27 group that is established by law or by the entity for the purpose of advising or 28 otherwise assisting the entity. 29 Sec. 44.99.740. Criteria for review. (a) In considering whether there is a 30 public need for continuation of an entity or for the performance of the functions of an 31 entity listed in AS 44.99.730, the commission shall consider the following criteria:
01 (1) the efficiency with which the entity operates; 02 (2) the extent to which the entity seeks out and implements procedures 03 related to the public that are user-friendly for the public; 04 (3) the extent to which the missions of the entity that have been 05 established by law have been carried out; 06 (4) the extent to which the entity has entered into activities not 07 mandated by statute, the extent to which there is a public need served by those 08 activities, and the extent to which those activities have been successfully performed; 09 (5) whether there is an alternative method of performing the duties and 10 missions of the entity that could adequately protect the public interest; 11 (6) the extent to which advisory committees in the entity are needed 12 and used by the entity; 13 (7) the extent to which the jurisdiction of the entity and the programs 14 administered by the entity overlap or duplicate jurisdictions or programs of other 15 entities and the extent to which the programs administered by the entity could be 16 consolidated with the programs of other state entities; 17 (8) the extent to which the entity has recommended statutory changes 18 to the legislature intended to benefit the public instead of benefiting the occupation, 19 business, or institution regulated by the entity; 20 (9) the promptness and effectiveness with which the entity disposes of 21 complaints concerning persons affected by the entity and makes corrections in the 22 entity's procedures, as needed, to increase the promptness and effectiveness of the 23 entity; 24 (10) the extent to which the entity has encouraged participation by the 25 public in making regulations, rules, and decisions, as opposed to encouraging 26 participation solely by the persons regulated by the entity and the extent to which 27 public participation has resulted in regulations, rules, and decisions compatible with 28 the statutory objectives of the entity; 29 (11) the extent to which changes are necessary in the enabling statutes 30 of the entity so that the entity can adequately comply with, or meet the goals of, the 31 criteria listed in this subsection;
01 (12) the extent to which the entity issues and enforces regulations, 02 rules, and decisions relating to potential conflicts of interest of its employees; 03 (13) the extent to which the entity follows records management 04 practices that enable the entity to respond efficiently to requests for public 05 information; 06 (14) the extent to which the entity has complied with applicable federal 07 and state laws regarding equality of employment opportunity and the rights and 08 privacy of individuals; 09 (15) the potential for, and effect of, federal intervention or loss of 10 federal funds if the entity is abolished in whole or in part; 11 (16) the annual budget and staff of the entity compared to the statutory 12 and constitutional duties of the entity. 13 (b) By September 1 of the year of review for an entity, the commission shall 14 provide notice of and hold one or more public hearings concerning the application of 15 the criteria listed in (a) of this section to each entity being reviewed by the 16 commission. At a public hearing, the commission shall accept testimony from the 17 public and from a person involved in the administration of the entity subject to the 18 review. 19 Sec. 44.99.750. Report by commission. (a) Following review of an entity 20 under AS 44.99.730, the commission shall prepare a report on the results of the review 21 of the entity, a summary of comments received at the public hearing on the entity, and 22 a recommendation to the legislature to continue, discontinue, restructure, or transfer 23 the duties and programs of an entity. The report must be based on the criteria listed in 24 AS 44.99.740 and other factors the commission considers appropriate. The 25 commission shall include in the report a bill in a form that, if enacted into law, would 26 implement the recommendations of the commission, including repeals and 27 amendments necessary to implement a recommendation of continuation, 28 discontinuation, restructuring, or transfer of a program or entity. 29 (b) If the commission recommends the discontinuation of an entity, the report 30 must include a recommendation on the length of a winding-down period for the entity 31 to conclude its business and proposed procedures for transferring the entity's records.
01 Sec. 44.99.759. Definition. In AS 44.99.700 - 44.99.759, "commission" means 02 the Alaska Sunset Commission. 03 * Sec. 10. AS 08.03.020(b); AS 24.20.231(7), 24.20.271(2), 24.20.311(b); AS 44.66.020, 04 44.66.040, 44.66.050, and 44.66.070(2) are repealed. 05 * Sec. 11. Section 11, ch. 19, SLA 2013, is repealed. 06 * Sec. 12. Section 11 of this Act takes effect immediately under AS 01.10.070(c).