04/11/2014 08:30 AM House FINANCE

SENATE BILL NO. 137                                                                                                           
                                                                                                                                
     "An Act  extending the termination  date of  the Alaska                                                                    
     Seismic  Hazards Safety  Commission; and  providing for                                                                    
     an effective date."                                                                                                        
                                                                                                                                
8:55:06 AM                                                                                                                    
                                                                                                                                
BRITTANY HUTCHINSON, STAFF, SENATOR CLICK BISHOP, read from                                                                     
a sponsor statement:                                                                                                            
                                                                                                                                
     Alaska has  more earthquakes than  any other  region in                                                                    
     the  U.S. and  is one  of the  most seismically  active                                                                    
     areas in  the world.   In fact, we are  approaching the                                                                    
     50th anniversary  of the  1964 Good  Friday Earthquake,                                                                    
     the most powerful in recorded North American history.                                                                      
                                                                                                                                
     Given  the historical  record and  inevitable potential                                                                    
     of future earthquake activity,  Alaska needs the Alaska                                                                    
     Seismic  Hazards   Safety  Commission.  The   ASHSC  is                                                                    
     statutorily designated as an  advisory body for seismic                                                                    
     hazard  safety  mitigation.   The  ASHSC's  overarching                                                                    
     purpose  is  to  analyze and  disseminate  information,                                                                    
     review  predictions  and   proposed  warnings,  and  to                                                                    
     provide recommendations for seismic safety mitigation.                                                                     
                                                                                                                                
      I  would  like to  see  the  termination date  of  the                                                                    
     Alaska  Seismic   Hazards  Safety   Commission  (ASHSC)                                                                    
     extended  from   June  30,  2014  to   June  30,  2020.                                                                    
     According  to the  Division of  Legislative Audit,  the                                                                    
     commission   has  a   demonstrated   public  need   and                                                                    
    therefore the termination date should be extended.                                                                          
                                                                                                                                
     The public  need is proven  and the public  interest is                                                                    
     served in the following ways:                                                                                              
                                                                                                                                
          1)   The  commission assists  with seismic  hazard                                                                    
          safety  training efforts.   For  example, in  2011                                                                    
          and   2012,  the   ASHSC   coordinated  with   the                                                                    
          Department  of Military  and  Veterans Affairs  to                                                                    
          facilitate training workshops  for volunteer first                                                                    
          responders  who  would   respond  after  a  severe                                                                    
          earthquake.                                                                                                           
          2)   They  hope  to significantly  improve  school                                                                    
          safety  by collaborating  with  the Department  of                                                                    
          Education and Early  Development on seismic issues                                                                    
          concerning  school  construction and  renovations.                                                                    
          Seismic hazard mitigation  efforts for schools are                                                                    
          an important  commission priority, as  schools are                                                                    
          critical infrastructure.                                                                                              
          3)   The  ASHSC served  the  public's interest  by                                                                    
          making seismic  hazards mitigation recommendations                                                                    
          to the governor,  legislature and private entities                                                                    
          through annual reports.                                                                                               
          4)   The      commission     helps      facilitate                                                                    
          collaboration   amongst   agencies  with   related                                                                    
          missions  and private  sector entities  on seismic                                                                    
          hazard mitigation.                                                                                                    
                                                                                                                                
KRIS  CURTIS,   LEGISLATIVE  AUDITOR,  ALASKA   DIVISION  OF                                                                    
LEGISLATIVE AUDIT,  relayed that the division  had conducted                                                                    
a sunset  review of the  commission which was  documented in                                                                    
report form Legislative Audit (copy  on file). She said that                                                                    
an audit of  the commission had last been  conducted in 2011                                                                    
and  at  that   time  it  had  been   recommended  that  the                                                                    
commission be extended for 4  years; the commission had been                                                                    
extended  for 2  years at  that time.  She related  that the                                                                    
division had concluded that the  commission operating in the                                                                    
public's  interest and  recommended that  the commission  be                                                                    
extended 6  years until the  year 2020. She stated  that the                                                                    
audit had  identified 4 areas for  operational improvements,                                                                    
which could be found on Page 9 of the report:                                                                                   
                                                                                                                                
     The commission should improve prioritization and                                                                           
     accountability    within    its   strategic    planning                                                                    
     documents.                                                                                                                 
                                                                                                                                
Ms. Curtis  relayed that  the prior  sunset audit  had found                                                                    
that   the   commission   lacked  a   clear   strategy   for                                                                    
prioritizing and monitoring its  efforts. The commission had                                                                    
made  progress  in resolving  the  finding  by developing  a                                                                    
strategic  plan that  identified  objectives and  strategies                                                                    
that  correlated with  the commissions  mandated powers  and                                                                    
duties.  She  shared  that   the  division  recommended  the                                                                    
following additions to help the  commission more fully focus                                                                    
its efforts:                                                                                                                    
                                                                                                                                
     1.  Clearly  prioritizing tasks  -  while  each of  the                                                                    
     tasks in the strategic plan  is assigned a priority, 27                                                                    
     of  the  29  tasks   are  listed  as  "important."  The                                                                    
     commission goals and action lists do not contain                                                                           
     priorities;                                                                                                                
     2. Consistently identifying the person or subcommittee                                                                     
     responsible for task completion; and                                                                                       
     3. Associating goals and action lists with the                                                                             
     commission's overarching strategic plan objectives and                                                                     
     consistently identifying a specific outcome.                                                                               
                                                                                                                                
Ms.  Curtis  said  that   by  approving  accountability  and                                                                    
prioritization  the commission  could improve  their ability                                                                    
to serve the  public. She pointed out to  the committee that                                                                    
on  Page  12 of  the  report  the  division had  found  that                                                                    
recommendations   issues   by   the   commission   had   not                                                                    
consistently  identified  the organization  responsible  for                                                                    
implementing  their  recommendation; additionally,  not  all                                                                    
recommendations  adequately  identified  the  action  to  be                                                                    
performed, and  at times the commission  was uncertain about                                                                    
where to direct their  recommendations. She relayed that the                                                                    
division recommended  that the commission ensure  that their                                                                    
recommendations   clearly    identified   the   organization                                                                    
responsible for implementing an action  and the action to be                                                                    
performed.   Additionally,   the  commission   should   seek                                                                    
assistance from  the Department  of Natural  Resources (DNR)                                                                    
management   and  identify   the  appropriate   organization                                                                    
responsible for  implementing recommendations. She  spoke to                                                                    
two   housekeeping   recommendations,  one   directing   the                                                                    
commission   to   replace  chronically   absent   commission                                                                    
members, and  another to  the commission  and the  Office of                                                                    
the Governor to work together  to fill vacant positions in a                                                                    
timely manner.                                                                                                                  
                                                                                                                                
Vice-Chair  Neuman  asked  how  many  vacant  positions  the                                                                    
commission had  and how  long, on  average, did  they remain                                                                    
vacant.                                                                                                                         
                                                                                                                                
Ms.  Curtis  replied  that  recommendation   3  on  Page  11                                                                    
identified the number  of positions and the  duration of the                                                                    
vacancies. She said that it  was an 11 member commission and                                                                    
that vacancies were expected given  the number of positions.                                                                    
She stated  that when evaluating how  material the vacancies                                                                    
were the  division weighed the  effect the absence  of those                                                                    
members  had  on  commission business.  She  mentioned  that                                                                    
during  FY12-FY13 there  had been  a Department  of Military                                                                    
and  Veterans Affairs  (DMVA) seat  that was  vacant for  10                                                                    
months; there had been a  delayed appointment due to unclear                                                                    
guidance about  appointment procedures which lead  to a lack                                                                    
of quorum.                                                                                                                      
Vice-Chair Neuman felt  that there were a lot  of members on                                                                    
the commission.  He wondered if  one of  the recommendations                                                                    
had been to reduce the number of members.                                                                                       
                                                                                                                                
9:01:17 AM                                                                                                                    
                                                                                                                                
Ms.  Curtis replied  in the  negative. She  believed 6  to 8                                                                    
years ago  the commission's membership had  been expanded by                                                                    
the  legislature.  She stated  that  given  the past  policy                                                                    
decision the audit  did not consider changing  the number of                                                                    
positions.                                                                                                                      
                                                                                                                                
Co-Chair  Stoltze noted  that in  2011  the legislature  had                                                                    
spent  an  inordinate amount  of  time  on the  issue.  Many                                                                    
members of  the business community  had come out  in support                                                                    
of the commission.                                                                                                              
                                                                                                                                
Co-Chair Stoltze OPENED public testimony.                                                                                       
                                                                                                                                
Co-Chair Stoltze CLOSED public testimony.                                                                                       
                                                                                                                                
He pointed to the fiscal  impact note from the Department of                                                                    
Natural Resources.                                                                                                              
                                                                                                                                
Vice-Chair Neuman  MOVED to REPORT  SB 137 out  of committee                                                                    
with individual recommendations  and the accompanying fiscal                                                                    
note.                                                                                                                           
                                                                                                                                
SB  137 was  REPORTED  out  of committee  with  a "do  pass"                                                                    
recommendation  and  with  one previously  published  fiscal                                                                    
impact note: FN1 (DNR).                                                                                                         
                                                                                                                                
9:04:00 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:04:48 AM                                                                                                                    
RECONVENED