03/16/2012 09:00 AM House FINANCE

HOUSE BILL NO. 182                                                                                                            
                                                                                                                                
     "An Act relating to distribution of annual reports by                                                                      
     state agencies."                                                                                                           
                                                                                                                                
Vice-chair  Fairclough  MOVED  to ADOPT  proposed  committee                                                                    
substitute  for HB  182 (FIN)  Work Draft  27-LS0573\R as  a                                                                    
working  document.  There  being  NO  OBJECTION  it  was  so                                                                    
ordered.                                                                                                                        
                                                                                                                                
REPRESENTATIVE KYLE  JOHANSEN explained that the  bill takes                                                                    
all the  requirements in statute  that have been  written in                                                                    
the  past 40-50  years  that require  departments to  print,                                                                    
publish,   and  distribute   actual  pamphlets   and  annual                                                                    
reports. The  bill originally just involved  annual reports,                                                                    
but the State  Affairs Committee expanded it  to include all                                                                    
reports   required    by   statute,   to    be   distributed                                                                    
electronically.  There are  some exceptions.  The department                                                                    
commissioners would  make a  final determination  if reports                                                                    
needed to  be printed and  published. He gave an  example of                                                                    
why printed material has been needed  in the past. HB 9 came                                                                    
about when a person in  the Department of Commerce indicated                                                                    
the  need for  a  $250,000 increment.  When  asked why,  the                                                                    
person noted  rising printing costs  and the  requirement in                                                                    
statute for all  reports to be printed. In  2011, the Office                                                                    
of Management  and Budget (OMB)  predicted a  projected $1.6                                                                    
million savings. The fiscal note is indeterminate.                                                                              
                                                                                                                                
10:21:48 AM                                                                                                                   
                                                                                                                                
Representative  Costello  commented  that  when  the  Arctic                                                                    
Policy Council legislation passed  out, the fiscal notes did                                                                    
include  printing  report  costs.   When  fiscal  notes  are                                                                    
prepared, departments assume that  the reports are wanted in                                                                    
a printed  format. She  believed the bill  moves in  a great                                                                    
direction.  There could  be  considerable  cost savings  and                                                                    
thanked the sponsor.                                                                                                            
                                                                                                                                
Co-Chair Stoltze  noted that the  default position  would be                                                                    
electronic reports unless there  is a justifiable reason for                                                                    
the material to be printed.                                                                                                     
                                                                                                                                
Representative Johansen agreed that  was correct. Giving the                                                                    
department commissioners the authority  to make the decision                                                                    
would force the department to  justify their request to have                                                                    
the material printed.                                                                                                           
                                                                                                                                
10:24:01 AM                                                                                                                   
                                                                                                                                
DEITRA  ENNIS,  DEPUTY  MUNICIPAL ATTORNEY,  ANCHORAGE  (via                                                                    
teleconference) spoke in support  of the bill. The municipal                                                                    
language earlier referenced  speaks to noticing requirements                                                                    
to  tax  payers  for  closer  and  redemption  periods.  She                                                                    
stressed the importance in the  bill of not eliminating mail                                                                    
requirements. It  allows the municipality to  add electronic                                                                    
notice  to  the  newspaper  notice.  There  are  significant                                                                    
benefits of  the bill: costs, updating  and flexibility, and                                                                    
more  helpful information  available.  The  bill allows  the                                                                    
municipality to  decide the most  effective method  to reach                                                                    
taxpayers.  Estimated savings  was  $500,000  for the  first                                                                    
year on information brought online.                                                                                             
                                                                                                                                
10:27:10 AM                                                                                                                   
                                                                                                                                
Representative Edgmon asked if,  under law, the municipality                                                                    
was not  already able to  do it.  Ms. Ennis replied  that it                                                                    
would  not  apply  for  the   last  15  days,  because  some                                                                    
information must  be delivered  to the  newspaper so  far in                                                                    
advance.                                                                                                                        
                                                                                                                                
Representative  Gara MOVED  Amendment  1, 27-LS0573,  Kirsh,                                                                    
3/15/12. (Copy on file)                                                                                                         
                                                                                                                                
                        AMENDMENT 1                                                                                           
                                                                                                                                
     OFFERED IN THE HOUSE                                                                                                       
          TO: CSHB 182(), Draft Version "T"                                                                                     
                                                                                                                                
     Page 3, lines 29 - 30:                                                                                                     
          Delete "required by statute to produce and                                                                            
          distribute"                                                                                                           
                                                                                                                                
          Insert "that produces and distributes"                                                                                
                                                                                                                                
     Page 4, lines 1 - 2:                                                                                                       
                                                                                                                                
          Delete "The agency shall provide and post the                                                                         
          report for one year or until it is superseded,                                                                        
          whichever occurs first."                                                                                              
                                                                                                                                
     Page 4, line 3:                                                                                                            
                                                                                                                                
          Delete "those"                                                                                                        
                                                                                                                                
     Page 4, following line 14:                                                                                                 
                                                                                                                                
          Insert a new section to read:                                                                                         
                                                                                                                                
               "Sec. 44.99.380. Graphic design for annual                                                                       
          reports. Notwithstanding AS 44.99.200, when                                                                           
          preparing annual reports, a state agency may not                                                                      
                                                                                                                                
               (1) print color copies unless color is                                                                           
          needed for the reader to understand the material;                                                                     
                                                                                                                                
               (2) hire contractors to provide photographs                                                                      
          or graphics unless                                                                                                    
                                                                                                                                
                    (A) no agency employee qualified to                                                                         
               perform the work is available; or                                                                                
                                                                                                                                
                    (B) the agency would use fewer state                                                                        
               resources by hiring a contractor."                                                                               
                                                                                                                                
Vice-chair Fairclough OBJECTED for purpose of discussion.                                                                       
                                                                                                                                
Representative  Gara   worked  with  the  sponsor   and  the                                                                    
Department  of   Law  to  make  the   changes  reflected  in                                                                    
Amendment  1.  He  noted  that a  lot  of  agencies  produce                                                                    
reports so  his amendment  allows all  agency reports  to be                                                                    
posted  electronically. On  page 4,  lines 1-2,  states that                                                                    
the  reports will  be done  electronically, but  also states                                                                    
the report  must be removed  after one  year. Representative                                                                    
Gara  noted that  there are  people  who would  like to  see                                                                    
information  for more  than one  year. The  position in  the                                                                    
amendment  gives   the  agency   the  discretion   to  leave                                                                    
information on  the website longer  if it serves  the public                                                                    
interest. The most important part  starts on page 4 with the                                                                    
desire  to save  money. In  annual reports  there may  be no                                                                    
need  for color  or the  necessity to  hire outside  graphic                                                                    
designers or  photographers. The change would  indicate that                                                                    
"unless it is needed" the report  should not be in color and                                                                    
the agency should do its own work.                                                                                              
                                                                                                                                
Vice-chair Fairclough  asked if the sponsor  approved of the                                                                    
amendment. Representative Johansen  agreed with the changes.                                                                    
He believed the suggestions improve the bill.                                                                                   
                                                                                                                                
Co-Chair  Stoltze WITHDREW  his  OBJECTION  to Amendment  1.                                                                    
There being NO Further OBJECTION, Amendment 1 was adopted.                                                                      
                                                                                                                                
Representative Neuman mentioned that  the lack of government                                                                    
information is not helpful when  people want to be involved.                                                                    
He asked  if someone  wanted the paper  documentation, would                                                                    
it be available.                                                                                                                
                                                                                                                                
Representative Johansen read from  page 4, line 13-14, where                                                                    
it states that a person can  obtain a print copy of a report                                                                    
from the  Alaska State Library Distribution  and Data Access                                                                    
Center.   The  bill   also   states   that  the   department                                                                    
commissioner  have   the  authority  to  decide   whether  a                                                                    
document should be distributed widely.                                                                                          
                                                                                                                                
Representative  Neuman   commented  that  a  lot   of  rural                                                                    
communities do not have accessible libraries.                                                                                   
                                                                                                                                
Co-Chair  Stoltze  reported  that  most  people  today  have                                                                    
computer access.                                                                                                                
                                                                                                                                
10:35:08 AM                                                                                                                   
                                                                                                                                
Representative Johansen mentioned that  access was a concern                                                                    
brought  up  by  a  librarian in  Ketchikan.  The  bill  was                                                                    
written  to   make  sure  that  the   Alaska  State  Library                                                                    
Distribution Center, which is  connected to every library in                                                                    
the  state, had  the  information. He  also  stated that  80                                                                    
percent of households in Alaska have internet access.                                                                           
                                                                                                                                
Co-Chair Stoltze CLOSED public testimony.                                                                                       
                                                                                                                                
10:36:54 AM                                                                                                                   
                                                                                                                                
Vice-chair Fairclough  MOVED to report CSHB  182(FIN) out of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal  note. There being NO  OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSHB  182(FIN) was  REPORTED  out of  committee  with a  "do                                                                    
pass" recommendation  and with one new  indeterminate fiscal                                                                    
note from the Office of the Governor.