SB 107: "An Act establishing a violation for hindering the Alaska Sunset Commission; establishing the Alaska Sunset Commission to review, audit, and make recommendations on discontinuation of or changes to state entities; and relating to the powers and duties of the Alaska Sunset Commission."
00 SENATE BILL NO. 107 01 "An Act establishing a violation for hindering the Alaska Sunset Commission; 02 establishing the Alaska Sunset Commission to review, audit, and make 03 recommendations on discontinuation of or changes to state entities; and relating to the 04 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) or (m) [(INTERFERENCE OR FAILURE TO 24 COOPERATE WITH THE LEGISLATIVE BUDGET AND AUDIT 25 COMMITTEE)]. 26 * Sec. 4. AS 39.25.160 is amended by adding a new subsection to read: 27 (m) A state employee may not intentionally fail to give or direct, order, 28 threaten, restrain, coerce, force, or prevent another person from giving, full 29 cooperation to the Alaska Sunset Commission established in AS 44.99.700 or its staff 30 if the person does not reasonably believe that the action or failure to act is legally 31 justified. Violation of this subsection constitutes just cause for dismissal or other
01 appropriate disciplinary action. 02 * Sec. 5. AS 39.90.140(3) is amended to read: 03 (3) "matter of public concern" means 04 (A) a violation of a state, federal, or municipal law, regulation, 05 or ordinance; 06 (B) a danger to public health or safety; 07 (C) gross mismanagement, a substantial waste of funds, or a 08 clear abuse of authority; 09 (D) a matter accepted for investigation by the office of the 10 ombudsman under AS 24.55.100 or 24.55.320; or 11 (E) interference or any failure to cooperate with an audit or 12 other matter within the authority of Legislative Budget and Audit Committee 13 or the Alaska Sunset Commission established in AS 44.99.700; 14 * Sec. 6. AS 40.25.220(2) is amended to read: 15 (2) "public agency" means a political subdivision, department, 16 institution, board, commission, division, authority, public corporation, council, 17 committee, or other instrumentality of the state or a municipality; "public agency" 18 includes the University of Alaska, [AND] the Alaska Railroad Corporation, and the 19 Alaska Sunset Commission established in AS 44.99.700; 20 * Sec. 7. AS 44.99 is amended by adding new sections to read: 21 Article 7. Alaska Sunset Commission. 22 Sec. 44.99.700. Establishment of commission; composition. (a) The Alaska 23 Sunset Commission is established in the executive branch of state government. 24 (b) The commission consists of seven members appointed by the governor and 25 confirmed by the legislature in joint session. Members shall be qualified in financial 26 management, budgeting, economics, business operations, process improvement, or 27 government efficiency. 28 (c) Members may be reappointed. Members serve staggered terms of five 29 years until reappointed or replaced. 30 (d) If a member no longer meets the requirements under (b) of this section or 31 if a vacancy exists among those members for any reason other than the expiration of a
01 member's term, the governor shall, within 30 days after the occurrence of the vacancy, 02 make an appointment for the unexpired portion of the term, effective immediately. An 03 appointment made under this subsection to fill an unexpired term must comply with 04 the requirements under (b) of this section. 05 (e) The commission shall select a chair from among its members. Five 06 members of the commission constitute a quorum. The commission may take action 07 upon the affirmative vote of five members of the commission. 08 (f) While an entity employs or is negotiating for employment with a member 09 of the commission or the member's immediate family, the member may not participate 10 in deciding whether to review and audit the entity under AS 44.99.730, in reviewing 11 and auditing the activities and budget of the entity under AS 44.99.730, or in preparing 12 a report on the entity under AS 44.99.750. In this subsection, "immediate family" has 13 the meaning given in AS 24.60.990. 14 (g) 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 (h) 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 and audit the activities and budgets of entities under 24 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 and audited under 27 AS 44.99.730 and make a recommendation to the legislature to continue, discontinue, 28 restructure, or transfer the duties and programs of the entity; and 29 (3) prepare a report under AS 44.99.750 for each entity reviewed and 30 audited by the commission and, not later than the 10th day of the legislative session 31 following the calendar year of the review and audit, submit the report to the governor,
01 the senate secretary, and the chief clerk of the house of representatives, and notify the 02 legislature that the report is available. 03 (b) The commission may require all state officials and agencies of the state to 04 give full cooperation to the commission and its staff in assembling and furnishing the 05 information necessary to prepare a report under (a) of this section, including allowing 06 the commission to interview staff relating to work duties, processes, and products. 07 (c) In carrying out its functions under AS 44.99.700 - 44.99.759, the 08 commission or designated staff may attend any meetings and proceedings of any 09 entity, including any meeting or proceeding of a governing body of an entity that is 10 closed to the public, and may inspect the books, accounts, reports, or other records, 11 whether confidential or not, of any entity. 12 (d) The commission has the power to hold public hearings, administer oaths, 13 issue subpoenas, compel the attendance of witnesses and production of papers, books, 14 accounts, documents, and testimony, and have the deposition of witnesses taken in a 15 manner prescribed by court rule or law for taking depositions in civil actions. 16 Sec. 44.99.720. State entity's report to the commission. (a) Not later than 17 September 1 of the calendar year before the year in which an entity subject to 18 AS 44.99.700 - 44.99.759 is scheduled for review and audit under AS 44.99.730, the 19 entity shall report to the commission 20 (1) the extent to which the entity has met the criteria in AS 44.99.740; 21 (2) a list of each report that the entity is required by law to prepare and 22 an evaluation of the need for each report based on whether factors or conditions have 23 changed since the date the requirement to prepare the report was enacted; and 24 (3) any other information that the entity considers appropriate or that is 25 requested by the commission. 26 (b) The entity shall submit the report in electronic format, as required by the 27 commission. 28 (c) An entity that provides the commission with access to a privileged or 29 confidential communication, record, document, or file for purposes of a review or 30 audit under AS 44.99.700 - 44.99.759 does not waive the attorney-client privilege, or 31 any other privilege or confidentiality with respect to the communication, record,
01 document, or file provided to the commission. For purposes of this subsection, a 02 communication includes a discussion that occurs at a meeting or proceeding of the 03 entity that is closed to the public. 04 Sec. 44.99.730. Review and audit of state entities. (a) The commission shall 05 review and audit at least one entity each year. The commission shall provide notice of 06 its decision to perform a review and audit under this subsection in the calendar year 07 before the review and audit is scheduled to be completed and with sufficient time for 08 the entity to prepare the report required under AS 44.99.720(a). 09 (b) The review and audit under (a) of this section must include a review and 10 audit of any 11 (1) instrumentality of the state that is established within the entity; and 12 (2) committee, task force, or other group that is established to advise or 13 assist the entity by law or by the department in which the entity is established. 14 Sec. 44.99.740. Criteria for review and audit. (a) In considering whether 15 there is a public need for the continuation or restructuring of an entity or for the 16 performance of the functions of an entity reviewed and audited under AS 44.99.730, 17 the commission shall consider the following criteria: 18 (1) the extent to which the missions established under AS 37.07.014 of 19 the entity have been carried out; 20 (2) whether the performance measurements set out in AS 37.07 are 21 appropriately set and are being met by supporting data; 22 (3) whether there is a method to better provide the entity's services and 23 provide the entity's services at a lower cost; 24 (4) the extent to which the entity has entered into activities not 25 mandated by statute, the extent to which there is a public need served by those 26 activities, and the extent to which those activities have been successfully performed; 27 (5) the extent to which process improvement could benefit the entity 28 and the public; 29 (6) the cost-effectiveness and efficiency with which the entity operates, 30 including 31 (A) the appropriateness of the entity's budget and the need for
01 items allocated for in the entity's budget, including costs for staff and office 02 space; and 03 (B) when considering the needs of the entity, the 04 appropriateness of 05 (i) the number of staff in the entity; 06 (ii) the positions and salaries held by staff in the entity; 07 (iii) staff travel costs incurred by the entity; and 08 (iv) the entity's operating hours, organizational 09 structure, and office size, location, and functionality; 10 (7) if there is overlap of services with other entities, the extent to 11 which there is potential for reorganization; 12 (8) the extent to which the entity is making it difficult for persons to do 13 business with the state; 14 (9) the extent to which changes are necessary in the enabling statutes 15 of the entity so that the entity can comply with or meet the desired results established 16 by the legislature under AS 37.07.014; 17 (10) other standards established by the commission. 18 (b) By September 1 of the year an entity is reviewed and audited, the 19 commission shall provide notice of and hold one or more public hearings on the 20 interconnected state road system concerning the application of the criteria listed in (a) 21 of this section to each entity being reviewed and audited by the commission. At a 22 public hearing, the commission shall accept testimony from the public and from a 23 person involved in the administration of the entity subject to the review and audit. 24 Sec. 44.99.750. Report by commission. (a) Following the review and audit of 25 an entity under AS 44.99.730, the commission shall prepare a report on the results of 26 the review and audit of the entity, a summary of comments received at the public 27 hearing on the entity, and a recommendation to the legislature to continue, 28 discontinue, restructure, or transfer the duties and programs of the entity. The report 29 must be based on the criteria listed in AS 44.99.740 and other factors the commission 30 considers appropriate. Unless confidentiality is expressly waived by the entity, the 31 report may not contain any confidential information obtained by the commission under
01 AS 44.99.710(c). The report must be delivered to the governor, the president of the 02 senate, the speaker of the house of representatives, the chief clerk, and the senate 03 secretary within the first 10 days of a legislative session following the calendar year of 04 the review and audit. A copy of the report must be delivered to every member of the 05 legislature. The commission shall include in the report draft legislation to implement 06 the recommendations of the commission. Draft legislation must be submitted to the 07 rules committee of each house with a request to introduce the legislation to implement 08 the recommendations of the commission. 09 (b) If the commission recommends the discontinuation of an entity, the report 10 must include a recommendation on the length of a winding-down period for the entity 11 to conclude its business and proposed procedures for transferring the entity's records. 12 If the commission recommends the restructuring of an entity, the report must include a 13 recommended restructuring plan. 14 (c) A committee of reference of each house, which shall be the standing 15 committee of legislative jurisdiction as provided in the Uniform Rules of the Alaska 16 State Legislature, shall hold at least one hearing on the recommendations of the 17 commission under (a) of this section. Notwithstanding AS 08.03.010(c) and 18 AS 44.66.010(a), if a bill to implement the recommendations of the commission is not 19 introduced, an entity reviewed and audited under AS 44.99.730(a) will expire on 20 June 30 of the fiscal year following the review and audit of the entity by the 21 commission. The duties of an entity expiring under this subsection are transferred to 22 the department in which the entity is established. 23 Sec. 44.99.759. Definitions. In AS 44.99.700 - 44.99.759, 24 (1) "commission" means the Alaska Sunset Commission; 25 (2) "entity" includes a division, board, authority, corporation, or other 26 unit in the executive branch of state government, but does not include an agency in the 27 judicial or legislative branch of state government or the University of Alaska. 28 * Sec. 8. AS 08.03.020(b) and AS 44.66.050 are repealed.