SB 107-ALASKA SUNSET COMMISSION  4:36:23 PM CHAIR KAWASAKI reconvened the meeting and announced the consideration of SENATE BILL NO. 107 "An Act establishing a violation for hindering the Alaska Sunset Commission; establishing the Alaska Sunset Commission to review, audit, and make recommendations on discontinuation of or changes to state entities; and relating to the powers and duties of the Alaska Sunset Commission." 4:36:45 PM SENATOR SHELLY HUGHES, District M, Alaska State Legislature, Juneau, Alaska, as sponsor of SB 107 she offered brief remarks and stating the bill would establish a sunset commission, an independent, unpaid panel with budget and efficiency expertise to review state agencies through finance and performance audits. This commission would submit recommended bills to the legislature to decide whether to continue or end ("sunset") an agency's operations. The commission's recommendations aim to help the governor and legislature create a more efficient budget and ensure taxpayers get better value. Similar commissions in other states have saved hundreds of millions of dollars by improving agency operations. SB 107 is designed to help control spending and contribute to Alaska's overall fiscal stability. 4:40:43 PM MEAD TREADWELL, representing self, Anchorage, Alaska, testified by invitation on SB 107 and stated three points: • The current sunsetting process is disorganized, driven by frustration and deficits, but SB 107 offers a more structured approach with healthy debate. • It's important to review federal authority delegation, as some agencies bring decision-making closer to Alaskans even if costly. • The legislators should address duplicated efforts and use technology to improve efficiency, like cloud computing, to reduce costs. MR. TREADWELL said overall, SB 107 promotes a clearer, more organized way to review government operations. 4:44:18 PM EIELIA PRESTON, Staff, Senator Shelly Hughes, Alaska State Legislature, Juneau, Alaska, presented an overview of SB 107 and moved to slide 2, Alaska Would be in Good Company. She said 10 states have Sunset Commissions and Alaska can learn from the experiences and methods of those states to be successful. 4:44:50 PM MS. PRESTON moved to slide 3, What Would Alaska's Sunset Commission Do: [Original punctuation provided.] • Audits of all performance and finance of all departments (divisions, sections, offices, etc.) on a rotating basis • Determine whether each entity should be continued, modified, consolidated with another entity, terminated, or enhanced • Recommends efficiency and cost-saving improvements to entities that are to be continued, modified, or consolidated in a bill draft submitted to legislature 4:45:22 PM MS. PRESTON moved to slide 4, Composition of Commission. She stated that the commission would be a team of seven that must have a combination of credentials: [Original punctuation provided.] • Financial management • Budgeting • Economics • Business operations • Process improvement • Government efficiency MS. PRESTON noted that each person must hold qualifications in at least one or more areas. 4:45:54 PM MS. PRESTON moved to slide 5, Sunset Commission; How it Would Work, and stated that SB 107 allows the Sunset Commission to hire expert staff, present recommendations in bill form, and involve the public twice in the review process. Agencies would either continue with improvements or be abolished, with functions transferred to the commissioner's office for up to a year. 4:47:14 PM MS. PRESTON moved to slide 6, Impact of Sunset Commission, and stated that in Texas, the sunset process has streamlined government by abolishing or consolidating nearly 100 agencies and programs, saving $1 billion and generating an $18 return for every $1 spent since 1985. Since 2001, 80 percent of the recommendations from its 570 agency reviews have become state law. 4:48:00 PM SENATOR HUGHES moved to slide 7, The Impact of a Sunset Commission, and read the following: [Original punctuation provided.] • 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 stated that the Sunset Commission audit process includes two opportunities for public input and, while housed in the executive branch for constitutional reasons, operates independently from the governor's authority. 4:49:52 PM CHAIR KAWASAKI announced invited testimony on SB 107. 4:51:06 PM ERIK BEVERLY, Executive Director, Texas Sunset Commission, Austin, Texas, testified by invitation on SB 107 and stated that the Texas Sunset Advisory Commission is a legislative agency that reviews state agencies to determine if they are still needed and how well they serve the public. Unless lawmakers vote to continue an agency, it will be abolished. He said the Commission is made up of legislators and public members, supported by professional staff. The commission operates in three phases: evaluation (research and public input), deliberation (public hearings and decision meetings), and legislative action (passing bills based on recommendations). He said since 1977, the process has saved taxpayers over $1 billion, eliminated or consolidated dozens of agencies, and improved government efficiency, transparency, and accountability. Most agencies are reviewed every 12 years, with about 22 reviews conducted each year. He stated that in the current session, they have identified $147 million in potential additional savings. 4:57:19 PM DENNIS HULL, State Affairs Manager, Americans for Tax Reform, Washington, D.C., testified by invitation on SB 107 and stated Americans for Tax Reform (ATR), founded in 1985 at President Reagan's request, advocates for lower taxes and smaller, accountable government and is best achieved by removing government from "autopilot." He argued that agencies often request and receive budget increases without adequate scrutiny due to a lack of financial transparency. SB 107 addresses that gap by creating a Sunset Commission that reviews agencies, drafts recommendations directly into bill form, holds public hearings, and sunsets agencies if action isn't taken. ATR supports SB 107 as a serious, well-structured reform with expert input and real accountability, unlike many similar efforts in other states. 5:01:32 PM SENATOR HUGHES stated her belief that SB 107 is the piece of the puzzle that will put the state of Alaska back in order. 5:01:56 PM CHAIR KAWASAKI held SB 107 in committee.