Legislature(2023 - 2024)BELTZ 105 (TSBldg)

03/14/2023 03:30 PM Senate STATE AFFAIRS

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 46 BRAIN INJURY AWARENESS MONTH TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
*+ SB 21 STRATEGIC PLANS FOR STATE AGENCIES TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
*+ SB 9 ALASKA SUNSET COMMISSION TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                SB   9-ALASKA SUNSET COMMISSION                                                                             
                                                                                                                                
4:44:56 PM                                                                                                                    
CHAIR  KAWASAKI   reconvened  the   meeting  and   announced  the                                                               
consideration  of  SENATE  BILL  NO. 9  "An  Act  establishing  a                                                               
violation for  hindering the  Alaska Sunset  Commission; relating                                                               
to the  Legislative Budget and  Audit Committee; relating  to the                                                               
duties  of the  legislature;  relating to  the legislative  audit                                                               
division and  the legislative finance division;  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."                                                                                                         
                                                                                                                                
He stated  this was the  first hearing  and the intention  was to                                                               
hear  the introduction,  take invited  and public  testimony, and                                                               
hold the bill for future consideration.                                                                                         
                                                                                                                                
4:45:28 PM                                                                                                                    
SENATOR  SHELLEY HUGHES,  District M,  Alaska State  Legislature,                                                               
Juneau,  Alaska,  sponsor of  SB  9,  introduced the  legislation                                                               
speaking to the following sponsor statement:                                                                                    
                                                                                                                                
     SB  9  "The Alaska  Sunset  Commission  Act" will  help                                                                    
     ensure  transparency,  efficiency, cost  effectiveness,                                                                    
     statutory  adherence, and  constitutional alignment  in                                                                    
     the operation of our state government.                                                                                     
                                                                                                                                
     The bill  establishes the  Alaska Sunset  Commission as                                                                    
     an  apolitical,   independent,  and   objective  entity                                                                    
     charged  with   reviewing,  via  detailed   and  robust                                                                    
     audits, each department  by division in the  state on a                                                                    
     rotating   schedule.    The   Commission    will   make                                                                    
     recommendations  related to  the performance  and costs                                                                    
     to the  legislature. Along with  the submission  of the                                                                    
     audit report  to the  legislature, the  Commission will                                                                    
     provide any recommended  statutory changes necessary to                                                                    
     accomplish  the  recommendations   in  the  report.  To                                                                    
     prevent a  division from  sunsetting and  its statutory                                                                    
     duties  falling  to  the  department's  office  of  the                                                                    
     commissioner,  the legislature  will need  take up  and                                                                    
     act on the audit report.                                                                                                   
                                                                                                                                
     The annual audit reports will  also be available to the                                                                    
     executive branch  for purposes of both  performance and                                                                    
     structural improvements  within departments as  well as                                                                    
     for  the construction  of  the  governor's budget  each                                                                    
     year.                                                                                                                      
                                                                                                                                
     The Commission  will be  comprised of  nine individuals                                                                    
     from   the  private   sector  with   financial,  budget                                                                    
     analysis, accounting, operations  management, and other                                                                    
     areas of  expertise who are  appointed by  the governor                                                                    
     and confirmed  by the legislature. The  Commission will                                                                    
     serve without compensation but will  be entitled to per                                                                    
     diem  and travel  expenses  authorized  for boards  and                                                                    
     commissions.  The Commission  may  employ  staff as  it                                                                    
     determines necessary to perform its duties.                                                                                
                                                                                                                                
     The size  and scope of  government can be  difficult to                                                                    
     grasp and  understand, and too often  unwieldy and hard                                                                    
     to  control. Currently,  the House  and Senate  Finance                                                                    
     members  are asked  in  a  matter of  a  few months  to                                                                    
     figure out  what is  going on in  each of  the fourteen                                                                    
     departments;  essentially  their  window  is  what  the                                                                    
     executive   branch   provides.    With   this   limited                                                                    
     information and in short  order, legislators are tasked                                                                    
     with  making  decisions  each year  involving  spending                                                                    
     billions  of public  dollars.  Access  to an  extensive                                                                    
     audit will  help hold  future governors  accountable to                                                                    
     building a responsible budget  and will aid legislators                                                                    
     in appropriating public dollars wisely.                                                                                    
                                                                                                                                
4:51:21 PM                                                                                                                    
SENATOR  HUGHES  delivered  a PowerPoint  titled  "Alaska  Sunset                                                               
Commission."  She began  on slide  2  that consisted  of a  color                                                               
coded map of  the US that showed that blue  states have appointed                                                               
state auditors  and red states  have elected state  auditors. The                                                               
color coded  US map depicted  on slide  3 shows who  appoints the                                                               
state auditors. Alaska is a  gold state which indicates the state                                                               
auditor is appointed  by the legislature. Slide  4, "Alaska Would                                                               
Be In  Good Company," is another  color coded map of  the US that                                                               
shows the other states that have a sunset commission.                                                                           
                                                                                                                                
SENATOR  HUGHES displayed  slide 5,  "What Would  Alaska's Sunset                                                               
Commission Do?"  She summarized that the  commission would review                                                               
each   department  by   division,  section,   and  office;   make                                                               
determinations about  modifications or consolidations;  and draft                                                               
the   recommended   improvements   into   legislation   for   the                                                               
legislature to consider.                                                                                                        
                                                                                                                                
SENATOR HUGHES advanced to slide  6, "Composition of Commission,"                                                               
and  described the  proposed  nine-member  commission. The  slide                                                               
read:                                                                                                                           
                                                                                                                                
       Public-member team of nine must have the following                                                                       
     combination of credentials                                                                                                 
                                                                                                                                
     • 2 certified public accountants                                                                                           
     • 1 budget analyst                                                                                                         
     • 1 controller/comptroller                                                                                                 
     • 1 with financial management experience                                                                                   
       • 2 with experience as business owner, CEO, or COO                                                                       
        based in-stat                                                                                                           
         • 2 with experience in finance, investment, or                                                                         
        business management                                                                                                     
                                                                                                                                
4:52:26 PM                                                                                                                    
SENATOR   HUGHES  directed   attention   to   slide  7,   "Sunset                                                               
Commission:  How It  Would Work."  She explained  that the  table                                                               
describes  the analysis  and  evaluation  process the  commission                                                               
follows throughout the  year with the end product  being the bill                                                               
that is submitted to the legislature.                                                                                           
                                                                                                                                
SENATOR  HUGHES  displayed slide  8,  "Proposed  Audit Cycle  Re-                                                               
initiated  Every  12  Years.  The   table  shows  the  audits  of                                                               
executive  branch   departments  start  in  2024   and  that  the                                                               
legislature would  be audited in  2034, the University  of Alaska                                                               
in  2035,  and  the  Alaska  Court System  and  agencies  in  the                                                               
judicial branch in 2036.                                                                                                        
                                                                                                                                
SENATOR HUGHES  turned to slide  9, "Impact of  Sunset Commission                                                               
Within  the  State  of  Texas Since  1977."  She  summarized  the                                                               
following outcomes:                                                                                                             
                                                                                                                                
     Streamlining Government                                                                                                  
     • 42 agencies and programs abolished                                                                                       
      • 52 agencies and programs 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                                                                            
                                                                                                                                
4:53:22 PM                                                                                                                    
SENATOR  HUGHES turned  to  slide  10, "The  Impact  of a  Sunset                                                               
Commission  Within  the  State  of  Alaska,"  and  spoke  to  the                                                               
potential outcomes:                                                                                                             
                                                                                                                                
     •  Higher  level   of  government   accountability  and                                                                    
        performance                                                                                                             
     •  Dissolved  state   entities   that  are   redundant,                                                                    
        ineffective, or inefficient                                                                                             
     •   Improved  policies   and   procedures  for   public                                                                    
        services                                                                                                                
     •   Millions  of  dollars   in  savings  that   can  be                                                                    
       reallocated toward other budget areas where needed                                                                       
     •   Targeted revenue resources to  ensure efficient and                                                                    
        effective government services                                                                                           
     •  Encourage greater participation and public input                                                                        
                                                                                                                                
SENATOR HUGHES  acknowledged that the  bill needed some  work but                                                               
she  had  worked  with  Legislative  Legal  Services  to  resolve                                                               
potential constitutional  issues. She  noted that  the commission                                                               
would reside within  the executive branch but  the governor would                                                               
not have oversight.  The members would serve on  a rotating five-                                                               
year schedule to  avoid the politics associated  with a four-year                                                               
cycle.                                                                                                                          
                                                                                                                                
4:55:05 PM                                                                                                                    
CHAIR KAWASAKI turned to invited testimony.                                                                                     
                                                                                                                                
4:55:21 PM                                                                                                                    
BRIAN FRANCIS,  Executive Director for the  Texas Sunset Advisory                                                               
Commission (TSAC), Austin,  Texas, stated that he  was neutral on                                                               
SB  9. He  described  TSAC as  a  nonpartisan legislative  agency                                                               
created in 1977 whose goal  is to objectively analyze and improve                                                               
state government. He spoke  enthusiastically about the importance                                                               
of accountability in public service.                                                                                            
                                                                                                                                
MR. FRANCIS described the three phases of the sunset process.                                                                   
                                                                                                                                
Evaluation Phase  Commission staff  gathers information  from the                                                             
agency  being reviewed,  the stakeholders,  and the  public. This                                                               
information  is used  to generate  a staff  report that  includes                                                               
findings and recommendations.                                                                                                   
                                                                                                                                
Deliberation Phase  The staff report  goes to the  Commission for                                                             
evaluation  and  additional  stakeholder and  public  input.  The                                                               
commission  will approve,  deny, or  modify each  recommendation.                                                               
Based on the input, additional  recommendations may also be added                                                               
in  this  phase.  The  two   types  of  recommendations  are  for                                                               
statutory changes or  management actions. The latter  can be done                                                               
within the existing authority of  the agency. Recommendations for                                                               
statutory changes advance to the Action Phase.                                                                                  
                                                                                                                                
Action Phase Sunset  bills are generated and will  go through the                                                             
normal legislative process.                                                                                                     
                                                                                                                                
MR. FRANCIS  stated that  there is no  doubt that  the Commission                                                               
has  streamlined  and  improved   the  government  in  Texas.  He                                                               
recounted  the  streamlining  and revenue-saving  data  that  the                                                               
sponsor presented in slide 9 of  the PowerPoint for SB 9. He also                                                               
spoke about  the improvements that  have been initiated  in Texas                                                               
as   a   result   of   the   Commission's   process.   He   cited                                                               
recommendations  related  to  juvenile  justice  and  the  public                                                               
utility  commission.  He continued  that  a  key element  in  the                                                               
sunset  process is  including  the sunset  date  in the  enabling                                                               
statute  for each  agency.  It  creates a  sense  of urgency  for                                                               
action by both the agency and the legislature.                                                                                  
                                                                                                                                
5:04:59 PM                                                                                                                    
STEVEN  OGLE, Deputy  Director &  General Counsel  for the  Texas                                                               
Sunset Advisory  Commission (TSAC), Austin, Texas,  stated he was                                                               
neutral on  SB 9. He  said he was  available as a  resource; he'd                                                               
been with TSAC  for 16 years and had reviewed  nearly every facet                                                               
of state government. He relayed  that the Texas Legislature meets                                                               
for  140 days  every two  years, so  it has  to be  efficient. He                                                               
continued  that when  a bill  comes to  the legislature  from the                                                               
Sunset Commission, members know that  agency has undergone a year                                                               
and one-half  of thorough review  and analysis. Each  agency goes                                                               
through this process every 12  years so it is routinely improved.                                                               
The result is  that the people of Texas get  better service. When                                                               
the  legislature doesn't  meet fulltime,  the process  only works                                                               
because the Sunset  Commission is a dedicated  agency whose staff                                                               
works fulltime.                                                                                                                 
                                                                                                                                
5:07:20 PM                                                                                                                    
MEAD  TREADWELL, former  Lieutenant Governor,  Anchorage, Alaska,                                                               
stated that  he had worked for  a long time to  have appropriate,                                                               
limited government  in Alaska.  He is  president of  Alaskans for                                                               
Tax Reform  and has  worked with  other organizations  to improve                                                               
transparency and efficiency in state  government. He said none of                                                               
these  organizations have  taken a  position  on SB  9, but  they                                                               
believe it's  important for the legislature  to consider measures                                                               
like this.  He opined that  the need for government  is perpetual                                                               
but not  every government program.  He spoke about the  impact of                                                               
changing technologies  and recalled his first  sunset exercise in                                                               
the  Alaska  Legislature.  He  opined that  what  stands  out  as                                                               
different in  SB 9  is that  it sets out  a regular  schedule for                                                               
agency reviews in a more public process.                                                                                        
                                                                                                                                
He recommended  the committee give serious  consideration to both                                                               
SB 9 and Senator Kaufman's bill on strategic planning.                                                                          
                                                                                                                                
5:11:09 PM                                                                                                                    
CHAIR KAWASAKI opened public testimony on SB 9.                                                                                 
                                                                                                                                
5:11:23 PM                                                                                                                    
PAMELA SAMASH,  representing self,  Nenana, Alaska,  testified in                                                               
support  of  SB  9.  She  mentioned  inflation  and  offered  her                                                               
perspective that anything that saves  money for the state and the                                                               
people  has merit.  She  opined that  SB 9  will  save money  for                                                               
everyone and create an honest environment.                                                                                      
                                                                                                                                
5:12:54 PM                                                                                                                    
CHAIR  KAWASAKI closed  public testimony  on SB  9. He  asked the                                                               
sponsor if she had final comments.                                                                                              
                                                                                                                                
SENATOR  HUGHES  reminded  the  committee  that  the  performance                                                               
audits  that the  legislative auditor  has been  conducting since                                                               
2013 will  end July  1 of  this year.  She suggested  the members                                                               
think  about  whether  those  audits  were  used  to  their  full                                                               
potential. The difference that SB 9  offers is that the result of                                                               
the analysis and review would  come before the legislature in the                                                               
form  of  legislation.   She  opined  that  it   would  help  the                                                               
administration and  the legislature. She expressed  hope that the                                                               
committee  would seriously  consider SB  9 and  Senator Kaufman's                                                               
bill on strategic planning.                                                                                                     
                                                                                                                                
5:14:35 PM                                                                                                                    
CHAIR KAWASAKI held SB 9 in committee.                                                                                          

Document Name Date/Time Subjects
SB 9 ver A.pdf SSTA 3/14/2023 3:30:00 PM
SB 9
SB 9 Supporting Document - LRS Report 19.010m 03.06.23.pdf SSTA 3/14/2023 3:30:00 PM
SB 9
SB 9 Sectional Analysis Ver A 03.06.23.pdf SSTA 3/14/2023 3:30:00 PM
SB 9
SB 21 Sponsor Statement Version A 1.25.23.pdf SFIN 3/12/2024 1:30:00 PM
SSTA 3/14/2023 3:30:00 PM
SB 21
SB 46 Version A 03.08.2023.pdf SSTA 3/14/2023 3:30:00 PM
SB 46
SB 46 Research BIAA 2022 Legislative Issue Briefs 3.1.2023.pdf SSTA 3/14/2023 3:30:00 PM
SB 46
SB 46 Research Unmasking Brain Injuries 3.1.2023.pdf SSTA 3/14/2023 3:30:00 PM
SB 46
SB0021A.PDF SSTA 3/14/2023 3:30:00 PM
SB 21
SB21 EBA Presentation.pdf SSTA 3/14/2023 3:30:00 PM
SB 21
SB 21 EBA One-pager handout.pdf SSTA 3/14/2023 3:30:00 PM
SB 21
SB 9 Sponsor Statement 03.06.23.pdf SSTA 3/14/2023 3:30:00 PM
SB 9
SB 21 Fiscal note.pdf SSTA 3/14/2023 3:30:00 PM
SB 21
SB 46 Fiscal Note VAR-EXE 03.10.2023.pdf SSTA 3/14/2023 3:30:00 PM
SB 46
SB 9 fiscal note.pdf SSTA 3/14/2023 3:30:00 PM
SB 9
SB 46 Sponsor Statement 3.1.2023.pdf SSTA 3/14/2023 3:30:00 PM
SB 46
SB 46 Sectional Analysis 3.1.2023.pdf SSTA 3/14/2023 3:30:00 PM
SB 46
SB 9 Presentation v1.3.pdf SSTA 3/14/2023 3:30:00 PM
SB 9