05/01/2025 03:30 PM Senate STATE AFFAIRS

                SB 107-ALASKA SUNSET COMMISSION                                                                             
                                                                                                                                
4:24:31 PM                                                                                                                    
CHAIR  KAWASAKI   reconvened  the   meeting  and   announced  the                                                               
consideration  of SENATE  BILL  NO. 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."                                                                                                             
                                                                                                                                
4:25:05 PM                                                                                                                    
SENATOR  SHELLY HUGHES,  District  M,  Alaska State  Legislature,                                                               
Juneau, Alaska, sponsor of SB 107  presented a brief recap of the                                                               
bill  and  noting  that  it  promotes  efficiency  and  effective                                                               
operations in  state agencies  through an  independent, objective                                                               
panel. She stated that the  panel presents recommendations in the                                                               
form of a bill to the  legislature for action, which reduces bias                                                               
and increases public confidence.                                                                                                
for  legislative  action,  reducing bias  and  increasing  public                                                               
confidence.  The process  includes  a year  of  public input  and                                                               
thorough  review,  offering  a   practical,  impartial  tool  for                                                               
budgeting and ensuring taxpayer resources are used effectively.                                                                 
                                                                                                                                
4:27:48 PM                                                                                                                    
SENATOR  GRAY-JACKSON   asked  whether  the   responsibility  for                                                               
conducting all the audits would fall to the legislative auditor.                                                                
                                                                                                                                
4:27:58 PM                                                                                                                    
SENATOR HUGHES answered no. She  said the current setup maintains                                                               
independence  and neutrality,  unlike  expanding the  legislative                                                               
auditor's  duties,  which  could introduce  political  bias.  The                                                               
panel operates on a rotating  basis to ensure impartiality across                                                               
administration and legislative cycles.                                                                                          
                                                                                                                                
4:28:53 PM                                                                                                                    
SENATOR   GRAY-JACKSON  asked   who  will   be  responsible   for                                                               
conducting the audits.                                                                                                          
                                                                                                                                
4:29:07 PM                                                                                                                    
SENATOR  HUGHES replied  that SB  107  allows the  panel to  hire                                                               
auditors,  though funding  is not  currently available.  She said                                                               
implementation could start small, such  as one agency or auditor.                                                               
The goal is  to ensure independence, avoiding  conflicts with the                                                               
governor's or legislative auditor's perspectives.                                                                               
                                                                                                                                
4:29:55 PM                                                                                                                    
SENATOR WIELECHOWSKI  asked whether  commissioners, who  serve at                                                               
the  pleasure  of  the  governor,  have  any  protection  against                                                               
termination.                                                                                                                    
                                                                                                                                
4:30:12 PM                                                                                                                    
SENATOR  HUGHES suggested  SB 107  could include  a mechanism  to                                                               
prevent  commissioners  from  being fully  under  the  governor's                                                               
control, such as allowing the  legislature to override a removal,                                                               
though she is unsure of the exact solution.                                                                                     
                                                                                                                                
4:30:47 PM                                                                                                                    
CHAIR KAWASAKI  highlighted the stability  and experience  of the                                                               
Legislative  Audit Division.  He  said auditors  often serve  for                                                               
decades while legislators come and  go. He praised the system for                                                               
its  independence  and   effectiveness,  and  mentioned  upcoming                                                               
legislation related to this topic.  He emphasized that audits and                                                               
commissioners operate without political  influence. He noted that                                                               
the  legislative auditor  strictly  follows the  law and  remains                                                               
apolitical.                                                                                                                     
                                                                                                                                
4:32:31 PM                                                                                                                    
SENATOR HUGHES stated  that the legislature could  have the power                                                               
to remove  someone, noting that  while the  legislature currently                                                               
has a  good auditor,  oversight is necessary.  SB 107  places the                                                               
independent entity under the executive  branch without giving the                                                               
governor control, like other independent state entities.                                                                        
                                                                                                                                
4:33:30 PM                                                                                                                    
CHAIR KAWASAKI opened public testimony on SB 107.                                                                               
                                                                                                                                
4:33:42 PM                                                                                                                    
MIKE  COONS, representing  self,  Wasilla,  Alaska, testified  in                                                               
support  of SB  107  and  stated that  the  bill  aims to  reduce                                                               
spending  by requiring  divisions recommended  for sunsetting  by                                                               
audits to  end unless the  legislature acts. He said  past audits                                                               
have  identified $160  billion in  savings, including  long ended                                                               
programs. SB 107 ensures audit  recommendations are considered by                                                               
both   the  legislature   and  governor,   promoting  data-driven                                                               
decisions  and  preventing   repeated  overspending,  potentially                                                               
saving millions.                                                                                                                
                                                                                                                                
4:36:54 PM                                                                                                                    
CHAIR KAWASAKI held SB 107 in committee.