Legislature(2023 - 2024)DAVIS 106

05/09/2023 06:00 PM House WAYS & MEANS

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Delayed to a Call of the Chair --
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= SB 107 PERMANENT FUND DIVIDEND; POMV SPLIT TELECONFERENCED
Heard & Held
*+ HB 190 ALASKA SUNSET COMMISSION TELECONFERENCED
Heard & Held
-- Invited Testimony --
                    ALASKA STATE LEGISLATURE                                                                                  
           HOUSE SPECIAL COMMITTEE ON WAYS AND MEANS                                                                          
                          May 9, 2023                                                                                           
                           6:44 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Ben Carpenter, Chair                                                                                             
Representative Jamie Allard                                                                                                     
Representative Tom McKay                                                                                                        
Representative Kevin McCabe                                                                                                     
Representative Cathy Tilton                                                                                                     
Representative Cliff Groh                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Andrew Gray                                                                                                      
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
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."                                                                               
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
CS FOR SENATE BILL NO. 107(FIN)                                                                                                 
"An  Act  relating to  the  Alaska  permanent fund;  relating  to                                                               
income  of the  Alaska  permanent fund;  relating  to the  amount                                                               
available for appropriation and  appropriations from the earnings                                                               
reserve  account; relating  to the  permanent fund  dividend; and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 190                                                                                                                  
SHORT TITLE: ALASKA SUNSET COMMISSION                                                                                           
SPONSOR(s): WAYS & MEANS                                                                                                        
                                                                                                                                
05/03/23       (H)       READ THE FIRST TIME - REFERRALS                                                                        
05/03/23       (H)       W&M, STA, FIN                                                                                          
05/08/23       (H)       W&M AT 6:00 PM DAVIS 106                                                                               
05/08/23       (H)       <Bill Hearing Canceled>                                                                                
05/09/23       (H)       W&M AT 6:00 PM DAVIS 106                                                                               
                                                                                                                                
BILL: SB 107                                                                                                                  
SHORT TITLE: PERMANENT FUND DIVIDEND; POMV SPLIT                                                                                
SPONSOR(s): FINANCE                                                                                                             
                                                                                                                                
03/17/23       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/17/23       (S)       FIN                                                                                                    
03/21/23       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
03/21/23       (S)       Heard & Held                                                                                           
03/21/23       (S)       MINUTE(FIN)                                                                                            
03/29/23       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
03/29/23       (S)       Heard & Held                                                                                           
03/29/23       (S)       MINUTE(FIN)                                                                                            
04/12/23       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
04/12/23       (S)       -- MEETING CANCELED --                                                                                 
04/17/23       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
04/17/23       (S)       Heard & Held                                                                                           
04/17/23       (S)       MINUTE(FIN)                                                                                            
04/18/23       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
04/18/23       (S)       Heard & Held                                                                                           
04/18/23       (S)       MINUTE(FIN)                                                                                            
04/19/23       (S)       FIN AT 1:30 PM SENATE FINANCE 532                                                                      
04/19/23       (S)       Moved CSSB 107(FIN) Out of Committee                                                                   
04/19/23       (S)       MINUTE(FIN)                                                                                            
04/21/23       (S)       FIN RPT CS 2DP 3NR 1AM    SAME TITLE                                                                   
04/21/23       (S)       DP: HOFFMAN, KIEHL                                                                                     
04/21/23       (S)       NR: STEDMAN, MERRICK, BISHOP                                                                           
04/21/23       (S)       AM: OLSON                                                                                              
05/01/23       (S)       TRANSMITTED TO (H)                                                                                     
05/01/23       (S)       VERSION: CSSB 107(FIN)                                                                                 
05/03/23       (H)       READ THE FIRST TIME - REFERRALS                                                                        
05/03/23       (H)       W&M, FIN                                                                                               
05/08/23       (H)       W&M AT 6:00 PM DAVIS 106                                                                               
05/08/23       (H)       Heard & Held                                                                                           
05/08/23       (H)       MINUTE(W&M)                                                                                            
05/09/23       (H)       W&M AT 6:00 PM DAVIS 106                                                                               
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
KENDRA BROUSSARD, Staff                                                                                                         
Representative Ben Carpenter                                                                                                    
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   On  behalf of  the sponsor  of HB  190, the                                                             
House   Special   Committee  on   Ways   and   Means,  of   which                                                               
Representative Carpenter  serves as chair, presented  the sponsor                                                               
statement,   provided  the   sectional  analysis,   and  gave   a                                                               
PowerPoint; on behalf of  Representative Carpenter, presented the                                                               
summary of changes for SB 107, Version O.                                                                                       
                                                                                                                                
SENATOR SHELLEY HUGHES                                                                                                          
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Provided invited testimony on HB 190.                                                                    
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
6:44:38 PM                                                                                                                    
                                                                                                                                
CHAIR BEN  CARPENTER called the  House Special Committee  on Ways                                                             
and Means meeting to order  at 6:44 p.m.  Representatives Allard,                                                               
McKay, McCabe,  Groh, and Carpenter  were present at the  call to                                                               
order.   Representative  Tilton  arrived as  the  meeting was  in                                                               
progress.                                                                                                                       
                                                                                                                                
                 HB 190-ALASKA SUNSET COMMISSION                                                                            
                                                                                                                                
6:45:34 PM                                                                                                                    
                                                                                                                                
CHAIR CARPENTER announced that the  first 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."                                                                 
                                                                                                                                
6:45:50 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 6:45 p.m. to 6:46 p.m.                                                                       
                                                                                                                                
6:46:18 PM                                                                                                                    
                                                                                                                                
KENDRA  BROUSSARD, Staff,  Representative  Ben Carpenter,  Alaska                                                               
State Legislature,  on behalf of  the sponsor, the  House Special                                                               
Committee on  Ways and Means,  of which  Representative Carpenter                                                               
serves  as chair,  presented the  sponsor statement  [included in                                                               
the   committee  packet],   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.                                                                     
                                                                                                                                
6:50:25 PM                                                                                                                    
                                                                                                                                
MS.  BROUSSARD,  on behalf  of  the  sponsor, the  House  Special                                                               
Committee  on  Ways  and  Means,   gave  the  sectional  analysis                                                               
[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.                                                                         
                                                                                                                                
6:54:21 PM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
6:54:43 PM                                                                                                                    
                                                                                                                                
MS.  BROUSSARD,  on behalf  of  the  sponsor, the  House  Special                                                               
Committee  on  Ways and  Means,  presented  a PowerPoint,  titled                                                               
"Texas  Sunset Commission  Overview" [included  in the  committee                                                               
packet].   She  moved  to slide  2  and slide  3,  which read  as                                                               
follows [original punctuation provided]:                                                                                        
                                                                                                                                
     The Texas 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.                                                                    
     Learn how the Sunset process  can have major impacts on                                                                    
     state government.                                                                                                          
                                                                                                                                
      Sunset Staff Evaluation                                                                                                   
          o  Sunset staff  performs  extensive research  and                                                                    
     analysis to evaluate the need  for, performance of, and                                                                    
     improvements to the agency under review.                                                                                   
      Sunset Commission Staff                                                                                                   
          o Reviews agency's self-evaluation report                                                                             
          o Receives input from interested parties                                                                              
          o Evaluates agency and identifies problems                                                                            
          o Develops recommendations                                                                                            
          o Publishes staff report                                                                                              
     Public input is confidential                                                                                               
                                                                                                                                
      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                                                                    
     Texas Legislature.                                                                                                         
                                                                                                                                
MS. BROUSSARD continued to slide 4, which read as follows                                                                       
[original punctuation provided]:                                                                                                
                                                                                                                                
       Public Hearings                                                                                                          
          o   Sunset   staff   presents  its   reports   and                                                                    
     recommendations                                                                                                            
          o Agency presents its response                                                                                        
          o  Sunset Commission  hears  public testimony  and                                                                    
     receives written comments                                                                                                  
          o Sunset  Commission meets  again to  consider and                                                                    
     vote on recommendations                                                                                                    
                                                                                                                                
     Public Input is published on the website                                                                                   
                                                                                                                                
      Legislative Action                                                                                                        
          o   The  Texas   Legislature  considers   Sunset's                                                                    
     recommendations and makes final decisions                                                                                  
                                                                                                                                
      Texas Legislature                                                                                                         
          o Sunset bill on an agency is drafted and filed                                                                       
          o  Sunset  bills  go  through  normal  legislative                                                                    
     process                                                                                                                    
          o  The  Senate  and the  House  conduct  committee                                                                    
     hearings and debate the bill                                                                                               
          o Bill passes or fails adoption                                                                                       
          o Governor signs, vetoes or  allows bill to become                                                                    
     law without signature                                                                                                      
                                                                                                                                
     Public may participate in legislative process                                                                              
                                                                                                                                
6:57:25 PM                                                                                                                    
                                                                                                                                
MS. BROUSSARD advanced to slide 5 and slide 6, which read as                                                                    
follows [original punctuation provided]:                                                                                        
                                                                                                                                
       The Sunset Commission  reviewed 19 state entities for                                                                    
     the 87thregular  legislative session  in 2021  and made                                                                    
     115 statutory recommendations  to the Legislature based                                                                    
     on staff  reports and public hearings.  The Legislature                                                                    
     adopted 78  percent of these recommendations  and added                                                                    
     other changes to further  improve state government. The                                                                    
     Sunset   Commission   also   adopted   114   management                                                                    
     directives to  address operational  concerns identified                                                                    
     during   staff   reviews.   Together,   these   changes                                                                    
     significantly improved state government by:                                                                                
                                                                                                                                
     The  Sunset Commission  reviewed  21  entities for  the                                                                    
     88th    Legislative   Session,    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. Notably,  the  commission  is                                                                    
     making several appropriative  recommendations, which is                                                                    
     atypical for  Sunset, to  the House  Appropriations and                                                                    
     Senate   Finance   committees   to   consider   funding                                                                    
     increases  for  Texas  Juvenile Justice  Department  to                                                                    
     increase  capacity of  juvenile justice  facilities and                                                                    
     address chronic staff retention  issues, and for Public                                                                    
     Utility  Commission of  Texas to  improve oversight  of                                                                    
     the  electric  and   water  utility  industries.  Other                                                                    
     recommendations include  transferring the  functions of                                                                    
     the  Anatomical Board  of  the State  of  Texas to  the                                                                    
     Texas Funeral Service  Commission to improve regulation                                                                    
     of  whole-body  donation   in  Texas,  and  temporarily                                                                    
     attaching  the   State  Board  of   Veterinary  Medical                                                                    
     Examiners  to the  Texas  Department  of Licensing  and                                                                    
     Regulation  to   provide  the  board   with  oversight,                                                                    
     guidance, and support.                                                                                                     
                                                                                                                                
6:58:46 PM                                                                                                                    
                                                                                                                                
MS. BROUSSARD, in response to a request from Chair Carpenter,                                                                   
skipped the presentation to slide 9 and slide 10, 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                                                                                                                     
                                                                                                                                
     Changes  made through  the  Sunset process  demonstrate                                                                    
     its  positive impact,  with a  proven  track record  of                                                                    
     reducing state agencies and  programs, saving the state                                                                    
     money,  and  updating  and improving  state  laws.  Key                                                                    
     Sunset  outcomes, highlighted  in the  textbox Sunset's                                                                    
     Impact Since 1977, illustrate Sunset's success                                                                             
                                                                                                                                
MS. BROUSSARD stated that slide 12 explains the sunset                                                                          
provision's impact in Texas since 1977, which read as follows                                                                   
[original punctuation provided]:                                                                                                
                                                                                                                                
     Streamlining Texas 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                                                                               
                                                                                                                                
MS. BROUSSARD concluded on slide 13 by providing a webpage link                                                                 
to Texas Sunset.                                                                                                                
                                                                                                                                
CHAIR CARPENTER added  that members should visit  the website and                                                               
understand what Texas is doing.                                                                                                 
                                                                                                                                
7:01:26 PM                                                                                                                    
                                                                                                                                
SENATOR  SHELLEY HUGHES,  Alaska State  Legislature, stated  that                                                               
she is  the sponsor of  SB 9, which is  the companion bill  to HB
190.   She expressed the belief  that SB 9 was  given a "courtesy                                                               
hearing" in the  Senate because she is in  the minority; however,                                                               
HB  9  "created  a  bit  of  a buzz"  because  the  bill  may  be                                                               
beneficial  to  the  state.    She said  that  the  Texas  Sunset                                                               
Advisory Commission presented its program  to the Senate, and she                                                               
expressed the opinion that from  this explanation Texas's program                                                               
appears workable  for Alaska.   She listed the states  which have                                                               
established  sunset  commissions,  including  Arizona,  Arkansas,                                                               
Colorado,  Delaware,   Idaho,  Minnesota,  Texas,   Vermont,  and                                                               
Washington.   For Alaska, she  commended the state's  auditor but                                                               
pointed out that much of  the work "collects dust;" however, with                                                               
a  commission, the  legislature would  be forced  to take  up the                                                               
issue.   After  Texas established  a sunset  commission 46  years                                                               
ago,   she  pointed   out  that   it  has   had  80   percent  of                                                               
recommendations  taken  up.   She  stated  that  Alaska's  Fiscal                                                               
Policy  Working Group  has pointed  out  four parts  to a  sunset                                                               
plan: settling  the permanent fund dividend  (PFD) issue, setting                                                               
a spending cap, creating revenue, and creating reductions.                                                                      
                                                                                                                                
SENATOR HUGHES advised  that a sunset commission  would allow the                                                               
legislature  to  acquire  full  departmental  information.    She                                                               
clarified  that  the commission  would  not  make decisions,  the                                                               
legislature  would; however,  the  commission  would provide  the                                                               
legislature with more  information to make these  decisions.  She                                                               
said  that  the  current   state  auditor's  recommendations  are                                                               
typically seen  as apolitical.   She  explained that,  over time,                                                               
such a commission  could become part of the  reduction element of                                                               
the fiscal plan [referenced above].                                                                                             
                                                                                                                                
7:07:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GROH  questioned the  size  of  the Texas  Sunset                                                               
Commission staff and budget.                                                                                                    
                                                                                                                                
SENATOR HUGHES  expressed uncertainty  and said she  would follow                                                               
up with  this information.  She  explained that HB 190  would set                                                               
up the  commission with the needed  staff.  She argued  that with                                                               
this commission the dollars put  into state government would have                                                               
a better  return.  She expressed  the opinion that, if  the state                                                               
looks  at  a  broad-based  tax,  a commission  would  be  a  wise                                                               
addition to a fiscal plan.                                                                                                      
                                                                                                                                
7:09:42 PM                                                                                                                    
                                                                                                                                
CHAIR  CARPENTER directed  attention to  the bill's  fiscal note,                                                               
which explains  that there would  be five full-time  employees in                                                               
fiscal year 2024  (FY24), and this number would stay  the same in                                                               
the out years.   He said the budget needed  would be $1.1 million                                                               
in  general fund  dollars,  and  the fiscal  note  uses a  static                                                               
assumption in the out years.                                                                                                    
                                                                                                                                
SENATOR HUGHES commented  that for every dollar  spent toward the                                                               
commission in  Texas, the state saw  a return of $18.   She added                                                               
that if $1 million is invested  in a commission the benefit could                                                               
be a state savings of $18 million.                                                                                              
                                                                                                                                
7:11:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GROH asked if the  commission is anticipated to be                                                               
in  addition to,  or in  lieu of,  the state's  existing auditing                                                               
process.                                                                                                                        
                                                                                                                                
SENATOR HUGHES answered that the  commission would not remove the                                                               
state  auditor,  but there  could  be  considerations on  whether                                                               
certain duties of  the auditor could be downsized  and shifted to                                                               
the commission.  She observed  that the state's auditing team has                                                               
been  conducting  a  performance  audit   for  ten  years.    She                                                               
expressed the  opinion that not  much has materialized  from this                                                               
audit.  She reiterated that  the commission would not replace the                                                               
state's auditor, rather, it would be in addition to the auditor.                                                                
                                                                                                                                
CHAIR CARPENTER confirmed that the  intention of HB 190 would not                                                               
be to diminish or replace the state auditor.                                                                                    
                                                                                                                                
REPRESENTATIVE GROH thanked the  bill sponsor for introducing the                                                               
legislation.    He   said  that  he  is   interested  in  finding                                                               
efficiencies and reductions, if possible.                                                                                       
                                                                                                                                
7:12:50 PM                                                                                                                    
                                                                                                                                
CHAIR CARPENTER announced that HB 190 was held over.                                                                            
                                                                                                                                
           SB 107-PERMANENT FUND DIVIDEND; POMV SPLIT                                                                       
                                                                                                                                
7:13:03 PM                                                                                                                    
                                                                                                                                
CHAIR CARPENTER announced that the  final order of business would                                                               
be  CS FOR  SENATE BILL  NO. 107(FIN),  "An Act  relating to  the                                                               
Alaska  permanent   fund;  relating  to  income   of  the  Alaska                                                               
permanent   fund;   relating   to  the   amount   available   for                                                               
appropriation  and  appropriations   from  the  earnings  reserve                                                               
account; relating  to the permanent fund  dividend; and providing                                                               
for  an effective  date."   [Before the  committee, adopted  as a                                                               
working  document   on  4/17/23,   was  the   proposed  committee                                                               
substitute  (CS)   for  SB  107,  Version   33-LS0731\P,  Nauman,                                                               
4/12/23, ("Version P").]                                                                                                        
                                                                                                                                
7:13:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCCABE moved  to adopt  the committee  substitute                                                               
(CS) for CSSB 107, Version  33-LS0349\O, Nauman, 5/5/23 ("Version                                                               
O"), as a working document.                                                                                                     
                                                                                                                                
REPRESENTATIVE GROH objected for the purpose of discussion.                                                                     
                                                                                                                                
7:13:48 PM                                                                                                                    
                                                                                                                                
MS. BROUSSARD,  on behalf of  Representative Carpenter,  gave the                                                               
explanation of changes  for Version O [included  in the committee                                                               
packet], which read as follows [original punctuation provided]:                                                                 
                                                                                                                                
     The  CS deletes  Sections 3,4,6,7  from CS  for SB  107                                                                    
     (FIN).                                                                                                                     
     Section 1                                                                                                                  
     Adds  intent   language.  It  is  the   intent  of  the                                                                    
     legislature  to pass  a  constitutional amendment  that                                                                    
     requires  payment of  the  permanent  fund dividend  to                                                                    
     eligible  residents  and  provides  that  the  dividend                                                                    
     payment is an allowable dedication  of funds. It is the                                                                    
     intent  of the  legislature that  this Act  establish a                                                                    
     maximum draw  on the earnings  reserve and  a statutory                                                                    
     amount of the annual permanent fund dividend.                                                                              
     Section 2                                                                                                                  
     Amended to keep current  law language, "net income from                                                                    
     the fund  includes the income  of the  earnings reserve                                                                    
     account established under AS 37.13.145."                                                                                   
     Section 3                                                                                                                  
     Changes  the language  regarding  the dividend  payment                                                                    
     from  "legislature may  appropriate" from  the earnings                                                                    
     reserve  fund to  the  "general  fund" to  "corporation                                                                    
     shall transfer"  from the earnings reserve  fund to the                                                                    
     "dividend fund."                                                                                                           
     Changes  the  dividend   payment  calculation  from  25                                                                    
     percent  of  a  POMV  to  50 percent  of  the  POMV  as                                                                    
     calculated in current law.                                                                                                 
     Section 4                                                                                                                  
     Section 5 from  CS to SB 107,  with language conforming                                                                    
     to  a   "distribution"  of  funds  that   replaces  the                                                                    
     language,  "appropriation,"  for  the  payment  of  the                                                                    
     dividend.                                                                                                                  
     Section 5                                                                                                                  
     New   language   that   allows   the   legislature   to                                                                    
     appropriate from  the earnings  reserve to  the general                                                                    
     fund.                                                                                                                      
     Section 6                                                                                                                  
     New  language that  limits the  combined  total of  the                                                                    
     dividend  distribution and  the appropriation  from the                                                                    
     earnings reserve account  to be the lesser  of the POMV                                                                    
     calculation  or the  balance  of  the earnings  reserve                                                                    
     fund.                                                                                                                      
     Section 7                                                                                                                  
     Conforming  language  to  exempt  mental  health  trust                                                                    
     income from the income available for distribution.                                                                         
     Section 8                                                                                                                  
     Repeals  language  in  current  law  that  requires  an                                                                    
     annual transfer  from the  earnings reserve  account to                                                                    
     the principle of the account.                                                                                              
     Section 9                                                                                                                  
     Makes the Act effective July 1, 2024.                                                                                      
                                                                                                                                
7:16:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GROH questioned the needed  changes to pay a 50/50                                                               
split of  the percent of market  value (POMV) PFD over  time.  He                                                               
pointed  out   that  the  original   language  in   the  proposed                                                               
legislation had  a "carrot" in  terms of revenues, and  Version O                                                               
would set  a 50/50 split  for POMV dividends without  providing a                                                               
path towards collecting additional revenues.                                                                                    
                                                                                                                                
CHAIR CARPENTER responded that the  original bill which came from                                                               
the Senate  was a mix  between a current  year and a  future year                                                               
solution.    After  viewing  the  presentation  [on  5/8/2023  on                                                               
economic  growth],  he  expressed   the  understanding  that  the                                                               
current budget  problem is driving  the state's  long-term fiscal                                                               
plan.  He expressed  the opinion that this is not  a "wise way to                                                               
go,"  as the  long-term fiscal  plan  needs to  drive the  annual                                                               
budget process.   He suggested simplifying  the Senate's proposed                                                               
legislation to  point to a  constitutional amendment  which would                                                               
allow   the  legislature   to  dedicate   the  PFD   program  and                                                               
statutorily define the PFD and its  earnings.  He said this would                                                               
remove  the PFD  from the  appropriations process;  therefore, it                                                               
would not  be a conversation  every year, and a  long-term fiscal                                                               
plan conversation could follow.   He advised that the state needs                                                               
a new  revenue structure, and this  bill already exists.   From a                                                               
political solution  perspective, he suggested that  the best path                                                               
forward for  a fiscal plan should  include a 50/50 POMV  split of                                                               
the Permanent Fund earnings.                                                                                                    
                                                                                                                                
REPRESENTATIVE  GROH commented  that  the state  would still  not                                                               
have revenue vehicles for additional revenue moving.                                                                            
                                                                                                                                
CHAIR CARPENTER  responded that there  has not  been a move  on a                                                               
long-term fiscal  solution in  the legislature  in the  past four                                                               
years.  He said that Representative  Groh is correct, in that the                                                               
committee has  not passed  a solution  for increases  in revenue,                                                               
but he  expressed the opinion that  one exists, and it  will move                                                               
out shortly.   He noted  that the  committee did move  a spending                                                               
limit  bill,  but this  has  not  moved  from the  House  Finance                                                               
Standing Committee.   He further noted  the companion legislation                                                               
in the  Senate would address  a spending limit; however,  this is                                                               
still in a  Senate committee.  He pointed out  that the challenge                                                               
would  be getting  the legislators  interested in  addressing the                                                               
state's fiscal structure.                                                                                                       
                                                                                                                                
REPRESENTATIVE   GROH   questioned   Representative   Carpenter's                                                               
intention to move  a revenue measure out of  committee before the                                                               
end of the session.                                                                                                             
                                                                                                                                
CHAIR CARPENTER expressed the hope on this.                                                                                     
                                                                                                                                
REPRESENTATIVE  GROH  stated that  he  does  not oppose  adopting                                                               
Version O with  amendments, and he removed his  objection.  There                                                               
being no further objection, Version O was before the committee.                                                                 
                                                                                                                                
7:23:57 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 7:23 p.m. to 7:24 p.m.                                                                       
                                                                                                                                
7:24:12 PM                                                                                                                    
                                                                                                                                
[SB 107 was held over]                                                                                                          
                                                                                                                                
7:25:05 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Special Committee on Ways and Means meeting was adjourned at                                                                    
7:25 p.m.                                                                                                                       

Document Name Date/Time Subjects
House CS for CSSB 107 (O).pdf HW&M 5/9/2023 6:00:00 PM
SB 107
HB 190 v.B.PDF HW&M 5/9/2023 6:00:00 PM
HW&M 1/24/2024 6:00:00 PM
HW&M 1/31/2024 6:00:00 PM
HW&M 2/14/2024 6:00:00 PM
HB 190
HB 190 - Sectional Analysis.pdf HW&M 5/9/2023 6:00:00 PM
HW&M 1/24/2024 6:00:00 PM
HW&M 1/31/2024 6:00:00 PM
HW&M 2/14/2024 6:00:00 PM
HB 190
HB 190 - Sponsor Statement.pdf HW&M 5/9/2023 6:00:00 PM
HW&M 1/24/2024 6:00:00 PM
HW&M 1/31/2024 6:00:00 PM
HW&M 2/14/2024 6:00:00 PM
HB 190
HB190-OOG-LTG -5-5-23 Fiscal Note.pdf HW&M 5/9/2023 6:00:00 PM
HB 190
CS for CS for SB 107--Explanation of changes.pdf HW&M 5/9/2023 6:00:00 PM
SB 107
Texas Sunset Commission Overview.pdf HW&M 5/9/2023 6:00:00 PM
HB 190