HB 274: "An Act relating to the powers and duties of the Legislative Budget and Audit Committee; relating to the powers and duties of the legislative audit division; providing for a sunset review of executive branch agencies; and providing for an effective date."
00 HOUSE BILL NO. 274 01 "An Act relating to the powers and duties of the Legislative Budget and Audit 02 Committee; relating to the powers and duties of the legislative audit division; providing 03 for a sunset review of executive branch agencies; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 44.66.050 is repealed and reenacted to read: 06 Sec. 44.66.050. Sunset review. (a) An agency is subject to a sunset review by 07 the Legislative Budget and Audit Committee at least once every six years. The 08 legislative audit division shall publish a staggered schedule for the sunset review of 09 every agency. 10 (b) No later than January 1 of the calendar year in which an agency is 11 scheduled for a sunset review, the agency shall report to the division in an electronic 12 format prescribed by the division 13 (1) the extent to which the agency has met the criteria in (d) of this 14 section; and
01 (2) any other information that the agency considers appropriate or that 02 is requested by the division. 03 (c) Upon receipt from an agency of the information required under (b) of this 04 section, the division shall 05 (1) review and verify the information submitted by the agency; 06 (2) conduct a review of the agency based on the criteria in (d) of this 07 section; 08 (3) provide notice of and hold one or more public hearings concerning 09 the application of the criteria listed in (d) of this section to the agency; the division 10 shall take public testimony at a hearing held under this paragraph; and 11 (4) prepare a report on the results of the sunset review of the agency 12 that includes 13 (A) the division's findings regarding application of the criteria 14 listed in (d) of this section to the agency; 15 (B) a summary of public comments received by the division 16 regarding the agency; 17 (C) a recommendation on whether the agency should be 18 terminated, continued, or reorganized; 19 (D) draft legislation to implement the recommendations in the 20 report; and 21 (E) any other information that the division considers 22 appropriate. 23 (d) In considering whether an agency subject to a sunset review should be 24 terminated, continued, or reorganized, the division shall consider the following 25 criteria: 26 (1) the extent to which the agency has carried out its mission statement 27 under AS 37.07.014; 28 (2) whether the performance measures set out in AS 37.07 are 29 appropriately set and are being met by supporting data; 30 (3) whether there is a method to better provide the agency's services 31 and provide the services at a lower cost;
01 (4) the extent to which the agency has engaged in activities not 02 mandated by statute, the extent to which there is a public need served by those 03 activities, and the extent to which those activities have been successfully performed; 04 (5) the extent to which processes could be improved to benefit the 05 agency and the public; 06 (6) the cost-effectiveness and efficiency with which the agency 07 operates, including 08 (A) the appropriateness of the agency's budget and the need for 09 items allocated for in the agency's budget, including costs for staff and office 10 space; and 11 (B) when considering the needs of the agency, the 12 appropriateness of 13 (i) the number of staff in the agency; 14 (ii) the positions and salaries held by staff in the 15 agency; 16 (iii) staff travel costs incurred by the agency; and 17 (iv) the agency's operating hours, organizational 18 structure, and office size, location, and functionality; 19 (7) if there is an overlap of services with other agencies, the extent to 20 which there is potential for reorganization; 21 (8) the extent to which the agency is making it difficult for persons to 22 do business with the state; 23 (9) the extent to which changes are necessary in the enabling statutes 24 of the agency so that the agency can comply with or meet the desired results 25 established by the legislature under AS 37.07.014; and 26 (10) any other criteria established by the division. 27 (e) On June 1 of the year in which an agency is subject to a sunset review, the 28 division shall deliver the report for an agency to the Legislative Budget and Audit 29 Committee. In addition, the division shall deliver a copy of the report to the governor, 30 the chief clerk, senate secretary, and every legislator within 10 days of the start of the 31 next regular session.
01 (f) The committee shall hold one or more hearings to receive testimony from 02 the public, the commissioner of the department with administrative responsibility for 03 the agency, and the members of the agency involved. At the conclusion of the 04 hearings, the committee shall vote whether to adopt the recommendations of the 05 division. If the committee adopts the recommendations of the division, the committee 06 shall introduce the draft legislation implementing the recommendations of the division 07 at the start of the regular session in the year following the sunset review. If the 08 committee does not accept the recommendations of the division, the committee may 09 introduce other legislation for the termination, continuation, or reorganization of the 10 agency. 11 (g) An agency that provides the division with access to a confidential 12 communication, record, document, or file for purposes of a sunset review does not 13 waive the confidentiality. The division may not include confidential information in a 14 sunset review report, unless confidentiality is waived by the agency. 15 * Sec. 2. AS 44.66 is amended by adding a new section to read: 16 Sec. 44.66.055. Terminated agencies. (a) Notwithstanding AS 08.03.010(c) 17 and AS 44.66.010(a), an agency subject to a sunset review terminates on June 30 of 18 the year following the year in which the agency was subject to the review, unless 19 legislation is enacted into law continuing or reorganizing the agency. 20 (b) Upon termination under (a) of this section, an agency continues in 21 existence until June 30 of the year following termination for the purpose of concluding 22 the affairs of the agency. The agency retains all powers and duties of the agency 23 during the concluding year. 24 (c) At the end of the concluding year, an agency terminated under this section 25 expires and the duties of the agency are transferred to the department in which the 26 agency is established. All money appropriated to a fund terminated under this section 27 lapses into the general fund at the end of the concluding year. 28 * Sec. 3. AS 44.66.060 is amended to read: 29 Sec. 44.66.060. Existing claims. This chapter does not cause the termination 30 or dismissal of a claim or right of a citizen against [A BOARD, COMMISSION, OR 31 PROGRAM OF] an agency terminated by legislative action or under this chapter that
01 is subject to litigation. Claims and rights shall be assumed by the department in [TO] 02 which the agency [BOARD OR COMMISSION] terminated under this chapter was 03 established [ATTACHED FOR ADMINISTRATIVE PURPOSES]. 04 * Sec. 4. AS 44.66.070 is repealed and reenacted to read: 05 In this chapter, 06 (1) "agency" includes a division, board, commission, authority, fund, 07 corporation, or other unit of the executive branch, other than 08 (A) a principal department; 09 (B) the local boundary commission established under 10 AS 44.33.810; 11 (C) the division in the Department of Commerce, Community, 12 and Economic Development that is responsible for community and regional 13 affairs; and 14 (D) the University of Alaska; 15 (2) "committee" means the Legislative Budget and Audit Committee 16 established under AS 24.20.151; 17 (3) "division" means the legislative audit division established under 18 AS 24.20.241. 19 * Sec. 5. This Act takes effect July 1, 2026.