Legislature(2023 - 2024)GRUENBERG 120
03/12/2024 03:00 PM House STATE AFFAIRS
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Audio | Topic |
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Start | |
SB103 | |
SB12 | |
HJR18 | |
SB95 | |
HB190 | |
Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
+= | SB 12 | TELECONFERENCED | |
+= | HJR 18 | TELECONFERENCED | |
+= | SB 95 | TELECONFERENCED | |
+ | HB 190 | TELECONFERENCED | |
+ | TELECONFERENCED | ||
+= | SB 103 | TELECONFERENCED | |
HB 190-ALASKA SUNSET COMMISSION 4:22:19 PM CHAIR SHAW announced that the final only order of business would be HOUSE BILL NO. 190, "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; relating to the powers and duties of the Alaska Sunset Commission; and providing for an effective date." [Before the committee was CSHB 190(W&M).] 4:22:36 PM REPRESENTATIVE BEN CARPENTER, Alaska State Legislature, presented CSHB 190(W&M) on behalf of the sponsor, the House Special Committee on Ways and Means, on which he serves as chair. He paraphrased a sponsor statement [included in the committee packet] for CSHB 190(W&M), which read as follows [original punctuation provided]: Alaska spends twice as much as other states on government. There is not enough time or information available to utilize the annual budget process to ensure efficient spending, effective service delivery and continual process improvement in state agencies. The Executive Budget Act requires the Governor and his agencies to use performance and financial data in its budgeting process and to provide such information to the legislature for its budget deliberations. Nonetheless, the Executive Budget Act is not being followed by the executive or the legislature as it should. Data provided by executive departments is insufficient for program evaluation, planning and budgeting. In addition, for the past ten years, the State Auditor has produced performance review audits of state agencies. Again, these resources are not being utilized by state agencies or the legislature, and the statute is sunsetting. HB 190 aims to both provide usable data and impose recourse into the review process. Adding an extensive third-party review, and the real risk that an entity of government will be eliminated by law, may be the external disruption necessary to lead to leaner government. HB 190 "The Alaska Sunset Commission Act" will help ensure adherence to performance requirements and process improvement in the operation of our state government. The bill establishes the Alaska Sunset Commission under the Lieutenant Governor as an independent and objective group charged with reviewing each department by division in the state on a rotating schedule. The Commission will be comprised of seven individuals from the private sector with financial, budget analysis, accounting, operations management, and other areas of expertise who will be appointed by the governor (3), speaker of the house (2) and president of the senate (2). Commissioners will have staggered terms of five years, choose a chair, and will serve without compensation but commissioners will be entitled to per diem and travel expenses authorized for boards and commissions. The Commission may employ staff and hire consultants as it determines necessary to perform its duties. Duties of the commission will be to determine whether there is a public need for the continuation of the entity and to make a recommendation to the legislature to continue, discontinue, restructure, or transfer the duties and programs of the entity to another entity. The Commission will review the entities of one department each year that will include adherence to financial and performance requirements under the Executive Budget Act, utilization of process improvement, efficiency of operations, overlap with other state entities, and the extent to which the entity is making it difficult to do business in Alaska. The Commission will submit a report to the Governor and Legislature within the first 10 days of legislative session that includes a recommendation to continue, discontinue, restructure, or transfer duties to another entity. Along with the submission of the report to the legislature, the Commission will provide any recommended statutory changes necessary to accomplish the recommendations in the report to the Rules Committees with requests to introduce the legislation. If the legislature does not act on the Commission's report, the entity subject of the report will be sunset at the conclusion of the following fiscal year. 4:27:35 PM KENDRA BROUSSARD, Staff, Representative Ben Carpenter, Alaska State Legislature, on behalf of the sponsor, the House Special Committee on Ways and Means, on which Representative Carpenter serves as chair, provided a sectional analysis for CSHB 190 (W&M) [included in the committee packet], which read as follows [original punctuation provided]: Sections 1-5: Amends the State Personnel Act to include the Alaska Sunset Commission. Section 1 Allows persons who hinder the work of the Alaska Sunset Commission to be fined like those who may hinder the work of the Legislative Audit and Budget Committee. Section 2 A person who has been convicted under Section 1 of this Act cannot be appointed to state service unless a waiver is granted by the commissioner of administration. Section 3 Makes public information that a state employee has been dismissed or disciplined for a violation of interference or failure to cooperate with the Alaska Sunset Commission. Section 4 Allows a state employee to be disciplined or dismissed for failure to give full cooperation to the Alaska Sunset Commission. Section 5 Makes interference or failure to cooperate with the Alaska Sunset Commission a matter of public concern. Section 6 Amends the Public Record Disclosure Act to add the Alaska Sunset Commission to the definition of "public agency." Section 7 Adds a new section of law to establish the Alaska Sunset Commission under the Lieutenant Governor. The Commission consists of seven public members appointed by the Governor (3), Speaker (2), and Senate President (2) for staggered five-year terms. Establishes the qualifications of appointed members, selection of a chair, and allows the Commission to employ staff and hire consultants. Commissioners will receive per diem and travel expenses. Provides the powers and duties of the Commission, including reviewing the activities of each state entity subject to Commission review state entities and make recommendations to the legislature. Prior to the Commission's review of an entity each state entity shall provide to the legislature a report of the entity's evaluation of its adherence to the criteria for the Commission's review under this Act. Provides for a schedule of entities to be reviewed. The entities are each of the entities of a one state agency or the University of Alaska each year from 2024 through 2035. Provides the criteria for review, including the adherence to performance requirements set under the Executive Budget Act, alternative methods for delivery of services, organizational processes, efficiency with which the entity operates, reorganization potential, and the extent to which statutory changes are necessary for the entity to meet the desired improvements. Requires the Commission to hold public hearings and except public testimony. Requires a report by the Commission following each review of a state entity with a recommendation to the legislature to continue, discontinue, restructure, or transfer the duties and programs of the entity and a recommendation on a winding-down period for the entity to conclude its business or provide for a restructuring plan. The commission shall include in the report draft legislation to implement the recommendations of the Commission with a request to the rules committees to submit the legislation for introduction. Provides that if the recommendations of the Commission are not implemented by law, the entity subject to review will be sunset on June 30 of the fiscal year following the review. Provides definitions. Section 8 Repeals statutes governing the disposition of entities, statutes related to sunsetting performance reviews. Section 9 Repeals Performance Review State Law 2013 that is set to sunset July 1, 2023. Section 10 Makes Section 9 of this Act immediately effective 4:31:56 PM MS. BROUSSARD provided a PowerPoint presentation, titled "HB 190 Alaska Sunset Commission," [hard copy included in committee packet]. She read through the presentation starting on slides 2-3, titled "How the Alaska Sunset Commission Will Work," which read as follows [original punctuation provided]: The Sunset shines a light on state agencies and programs to see if they are still relevant in a changing world. If the answer is yes, the Sunset recommends improvements to make them more effective and efficient. If the answer is no, the sunset recommends abolishing the agency or transferring its functions to another agency with related functions The Commission would be administratively housed under the Lt. Governor. Commissioners will be appointed by the Governor, Speaker, and Senate President. The Commission shall be proficient in financial management, business operations, budgeting economics, process improvement or government efficiency. The Commission may hire staff and consultants with similar proficiencies to conduct a review of each entity of a Department HB 190 would Require the Commission to hold public hearings; at least one on the road system for each entity reviewed. The Commission drafts legislation that must be acted upon or the entity will sunset 4:33:09 PM MS. BROUSSARD continued with slides 4-5, titled "How the Alaska Sunset Works," which read as follows [original punctuation provided]: •Sunset Staff Evaluation o Each year, the Commission will review one state department and each of its entities: divisions and corporations. Sunset staff will perform extensive research and analysis to evaluate the need for, performance for, and improvements to the entity under review. • Sunset Commission Staff o Reviews the agency's self-evaluation report o Receives input from interested parties o Evaluates entity and identifies problems o Develops recommendations o Publishes staff reports • Sunset Commission Deliberation o The Sunset Commission conducts a public hearing to take testimony on the staff report and the agency overall. The Sunset Commission conducts a second meeting to vote on which changes to recommend to the Legislature. • Public Hearings o Sunset staff presents its reports and recommendations o The agency presents its response o The Sunset Commission will hear public testimony and receive written comments o The Sunset Commission will meet again to consider and vote on recommendations o Public Input is published on the website o The Sunset bills will go through the normal legislative process • Legislative Action o The Sunset bill on an entity is drafted and submitted through the Rules Committee o The Legislature will consider the Sunset Commission's recommendations and make its final decisions o The Senate and the House conduct committee hearings and debate/Amend the bill o Bill passes or fails adoption o If the Legislature fails to adopt or act on a bill, the entity sunsets at the end of the following fiscal year. 4:34:51 PM MS. BROUSSARD moved to slide 6, titled "HB 190 is Modeled After The Texas Sunset Commission," which read as follows [original punctuation provided]: The sunset process is a key legislative oversight tool that significantly streamlined and improved Texas government since it was created by the Texas Legislature in 1977. Sunset promotes a culture of continuous improvement in state government by providing objective, nonpartisan public forum for evaluating the need for state agencies and their effectiveness, efficiency, and responsiveness to the public. 4:35:27 PM REPRESENTATIVE CARPENTER made note that the Sunset Commission is not new and has been functioning in Texas since 1977. 4:35:35 PM MS. BROUSSARD moved to slide 7, titled "Texas Sunset During the 88th Legislature," which read as follows [original punctuation provided]: The Sunset Commission reviewed 21 entities for the 88th Legislative Session in Texas, resulting in 235 recommendations to streamline state government while enhancing services to our citizens. Generally, the recommendations eliminate unnecessary regulations, and improve accountability, align agencies' procedures with best practices, and strengthen effective delivery of services to Texans. 4:36:06 PM MS. BROUSSARD moved to slide 8, titled "Impact of Sunset Reviews," which read as follows [original punctuation provided]: The Texas Sunset process has led to major policy changes in almost every area of state government. Sunset recommendations also have eliminated duplication among agencies and programs, increased public participation, helped with government accountability, and improved the quality and efficiency of government services. 4:36:27 PM MS. BROUSSARD read slide 9, titled "Sunset's Impact Since 1977," which read as follows [original punctuation provided]: Streamlining Texas Government •42 entities and programs have been abolished •52 entities and programs have been abolished and transferred or consolidated Saving Taxpayer money •$1 billion in state and federal savings and revenue gains •Return of $18 for every $1 appropriated to the Sunset Commission since 1985 Providing Effective Oversight •570 reviews of state agencies and programs conducted •80 percent of Sunset recommendations to the Legislature have become state law since 2001 4:37:12 PM REPRESENTATIVE CARPENTER made note that slide 9 encompasses significant change over many decades in Texas which still has a functioning government despite the many efficiency changes. 4:37:30 PM MS. BROUSSARD described slide 10, titled "State of Alaska Department Entities," which read as follows [original punctuation provided]: - Department of Administration - 15 - Department of Commerce, Community and Economic Development - 18 - Department of Corrections - 4 - Department of Education and Early Development - 5 - Department of Environmental Conservation - 5 - Department of Family and Community Services - 7 - Department of Fish and Game - 10 - Department of Health - 8 - Department of Labor and Workforce Development - 11 - Department of Law - 8 - Department of Military and Veterans Affairs - 12 - Department of Natural Resources - 13 - Department of Public Safety - 14 - Department of Revenue - 16 - Department of Transportation and Public Facilities - 31 - University of Alaska - 3 Total amount of Entities = 180 4:37:43 PM REPRESENTATIVE CARPENTER noted that the 180 entities are not just departments, but subunits of each department. 4:37:57 PM MS. BROUSSARD directed the committee's attention to slide 11, titled "Helpful Links," which read as follows [original punctuation provided]: Texas Sunset Advisory Commission https://www.sunset.texas.gov/ The State of Alaska Agency Directory https://www.alaska.gov/akdir1.html 4:38:13 PM REPRESENTATIVE STORY asked how current audits fit into this process and whether the sunset commission would replace state audits. REPRESENTATIVE CARPENTER answered that the Sunset Commission is not meant to replace state audits. He explained that state audits provide recommendations to the legislature and the legislature is not required to act upon those recommendations. The Sunset Commission would be an entity housed below the lieutenant governor who is currently responsible for regulatory review. He said that the Sunset Commission would be complementary to a state audit, not a replacement. REPRESENTATIVE STORY asked about penalties for not cooperating with the commission. 4:40:40 PM DONNA ARDUIN, Staff, Representative Ben Carpenter, Alaska State Legislature, on behalf of the sponsor, the House Special Committee on Ways and Means, on which Representative Carpenter serves as chair, answered that required cooperation of state staff to the legislative auditor is mirrored in the bill language of the Sunset Commission. 4:41:11 PM REPRESENTATIVE CARRICK asked, if the legislature is not able to act on all the recommendations of the commission, whether the intent of the legislation would be to sunset various agencies. REPRESENTATIVE CARPENTER answered that the language in the bill is "substantially comply with", and therefore there would be a judgement call as to how many if not all then some components are taken up. MS. ARDUIN added that the legislation requires a report on each entity. If legislation is not acted upon, process improvements and reorganization may occur. If the audits are not acted upon, an entity may sunset the following year. REPRESENTATIVE CARRICK asked what would happen if the Sunset Commission found government entity inefficiency due to a lack of resources. REPRESENTATIVE CARPENTER responded that if inefficiencies were found in an entity due to a lack of adequate resources and funding, then the Sunset Commission would make a recommendation to the legislature to increase funding to alleviate the inefficiencies. REPRESENTATIVE CARRICK asked what would occur if the legislature received a recommendation from the Sunset Commission to increase funding and did not do so. REPRESENTATIVE CARPENTER answered that if a recommendation from the sunset commission was not followed, the entity would sunset. This forces the legislature to look closely at inefficiencies in the government and may choose to partially increase funding to prevent sunsetting of essential services. The legislation is not intended to reduce the authority of the legislature. 4:46:12 PM MS. ARDUIN added that the Sunset Commission would be required to submit a report on the evaluated entities, not legislation. She said the commission is not designed to sunset an entity if a recommendation is ignored. 4:47:09 PM CHAIR SHAW referred to slide 10, and asked if there is a reason the Sunset Commission does not include the governor's office, lieutenant governor's office, or the legislature in the list of department entities. MS. ARDUIN responded that there is a separation of powers issue with review in the governor's office. REPRESENTATIVE CARPENTER said he would be supportive of a friendly amendment to include the legislature in the list of entities. CHAIR SHAW thanked Representative Carpenter. 4:48:15 PM REPRESENTATIVE C. JOHNSON asked how Texas dealt with collective bargaining. REPRESENTATIVE CARPENTER offered to do some research and follow up later. REPRESENTATIVE C. JOHNSON commented that the Sunset Commission could "turn political very fast." He asked if safeguards have been considered to ensure that members of the Sunset Commission are consistent. 4:49:52 PM REPRESENTATIVE CARPENTER answered that as the bill is currently drafted, there are 5-year terms for appointed commissioners. He explained the division of appointments between the House, Senate, and the executive branch. REPRESENTATIVE C. JOHNSON reiterated his concern that appointing commissioners could be political. REPRESENTATIVE CARPENTER ensured that since the Sunset Commission was enacted in Texas in 1977 there have likely been political arguments, yet the state government continues to function. 4:51:26 PM REPRESENTATIVE STORY asked about the University of Alaska and how the University of Texas has been impacted by the Sunset commission. She discussed accreditation. REPRESENTATIVE CARPENTER answered that there have been case studies and referred to links provided in the presentation. He offered to do research and follow up later. 4:52:37 PM CHAIR SHAW opened public testimony on HB 190. After ascertaining that no one wished to testify, he closed public testimony. 4:52:55 PM CHAIR SHAW announced that HB 190 was held over.
Document Name | Date/Time | Subjects |
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SB 12 Amendment 1 HSTA.pdf |
HSTA 3/12/2024 3:00:00 PM |
SB 12 |
CS HJR 18 HSTA.pdf |
HSTA 3/12/2024 3:00:00 PM |
HJR 18 |
CS for HB 190 Summary of Changes.pdf |
HSTA 3/12/2024 3:00:00 PM |
HB 190 |
HB 190 - Sponsor Statement.pdf |
HSTA 3/12/2024 3:00:00 PM HSTA 4/9/2024 3:00:00 PM |
HB 190 |
HB 190 House State Affairs Bill Hearing Request.pdf |
HSTA 3/12/2024 3:00:00 PM |
|
HB0190B.pdf |
HSTA 3/12/2024 3:00:00 PM HSTA 4/2/2024 3:00:00 PM |
HB 190 |
List of Divisions and Corporations Under Each Department (for presentation).pdf |
HSTA 3/12/2024 3:00:00 PM HSTA 4/2/2024 3:00:00 PM |
|
CSHB 190 Sectional Analysis Version B.pdf |
HSTA 3/12/2024 3:00:00 PM HSTA 4/16/2024 3:00:00 PM |
HB 190 |
HB190 Alaska Sunset Commission Presentation 3.12.2024.pdf |
HSTA 3/12/2024 3:00:00 PM HSTA 4/2/2024 3:00:00 PM HSTA 4/16/2024 3:00:00 PM |
HB 190 |