11:14:53 AM CS FOR SENATE BILL NO. 201(FIN) An Act relating to the establishment and maintenance of an Internet website providing public finance information; and identifying the information to be available on the Internet website. 11:15:06 AM MICHELLE SYDEMAN, STAFF, SENATOR BILL WIELECHOWSKI, explained the intent of SB 201, the Alaska Open Government Act, to mandate creation of a free, searchable website that provides Alaskans with easy access to detailed information on State spending. She pointed out that such websites are happening across the country. In 2006, President Bush signed the Federal Funding Accountability and Transparency Act. The Act calls for creation of a searchable website for federal contracts and grants of more than $25 thousand dollars. Ms. Sydeman reported that the legislation had been introduced years ago by a bipartisan team of four U.S. senators, including John McCain and Barak Obama. She added, real accountability and good decision-making requires an informed public with access to information on government spending. The Governor endorses the bill. SB 201 places the requirement for free, publicly searchable database in statute, so that all future governors show the same commitment to transparency and accountability. Ms. Sydeman maintained the bill is good public policy as it provides guidance as to the type of information that a public finance website should contain. The bill calls for inclusion of information that will provide a context for the lay person regarding daily spending expenditures. The fiscal note is zero because it can be accomplished by using the existing webmasters and finance staff. She urged support for the bill. 11:18:44 AM Representative Thomas referenced the title "public finance"; he wondered if it could open-up the possibility of public financing for elections. Ms. Sydeman had not heard of anyone discussing or considering that possibility; she added, Senator Wielechowski would not support it. Representative Thomas worried that it could come forward as an amendment on the House floor. Representative Gara believed that any language such as that would not pass the House floor. Representative Hawker was not convinced that he should support the bill. Crossing the line and forcing disclosures often does not mesh with statewide regulations. He pointed out that the State is being asked to create a new type of information and accounting reporting system on information given in isolation without context. He worried that adopting the change would not be good; clarifying that it becomes a "professional issue" for him. He proposed an alternative, requesting that the Department determine a better "cap stone" index for the State system currently used. 11:23:27 AM Ms. Sydeman advised that the Senate Finance Committee (SFC) did determine a number of items that are clear for the public to understand & determined what the public should know from State accountants to help put the State spending in context. Nothing has been duplicated in the proposed system and there are no risks associated with the proposal. Representative Hawker argued that once the integrity of the document is violated by removing it out of context, the document then no longer carries the authority or is part of the audit. Representative Gara advised that Sections 2 & 3, describe the information that should be made available on the website. He understood that information, the State currently prepares. Ms. Sydeman said it is and could automatically be transferred to the website through the new accounting system. There would be no additional costs for doing that. 11:26:28 AM Representative Hawker clarified that the Administration has already undertaken an effort in that direction without making it a statutory mandate. When in statute, there is a benchmark, which could be taken to Court. He maintained that the proposed change would not be good for the State of Alaska. He recommended a professional evaluation of the language being proposed. CHRIS NELSON, ALASKANS FOR TAX REFORM, ANCHORAGE, testified via teleconference, spoke in favor of the bill. He explained that it is part of an effort happening nationally to provide greater public access to information. He noted that he had researched legislative spending extensively and that information is difficult to find. The legislation will organize the information and make it accessible. He commended the Legislature for its openness, but worried about future legislatures. He urged the bill pass from Committee. 11:31:09 AM KIM GARNERO, DIRECTOR, DIVISION OF FINANCE, DEPARTMENT OF ADMINISTRATION, DIRECTOR, added comments to address Representative Hawker's concerns. She pointed out that Senator Wielechowski's office had worked closely with the Department to identify items within the financial report that would be of interest to Alaskans and that they could be lifted from a website without misleading the public. She added that the information will provide some context for the public. Representative Gara pointed out that all the information is definable and currently in print. He stated that a concern regarding lawsuit filings was mute. Representative Kelly referenced information provided by the Department, which the Administration does not believe should be necessary codified in statute. He asked if the Administration supports the legislation. Ms. Sydeman responded that the Governor has indicated to her personally, she supports placing it in statute. Ms. Garnero had not yet received that information to date. AT EASE: 11:35:39 AM RECONVENE: 11:37:26 AM Representative Hawker MOVED to ADOPT Amendment 1. The amendment was drafted to Page 1, Line 7, following SHORT TITLE: Delete "This Act may be known as the Alaska Open Government Act and insert "This Act may be known as the Alaska Clear and Transparent Open Access to Alaskan State Government Financing for Dummies Act." Vice-Chair Stoltze OBJECTED for discussion purposes. Representative Hawker offered the amendment because he observed there are better ways to provide access to existing data. Vice-Chair Stoltze cautioned against using "dummies" in the title. Representative Hawker suspected copyright violation would prevail since it is a trademark name; he WITHDREW Amendment 1. 11:41:09 AM Co-Chair Meyer highlighted the zero note submitted by the Department of Administration. Representative Hawker disagreed with offering a zero note when the Department is required to write a cross-referenced data system. He did not believe that the proposed scope could be accomplished with no further funding. Ms. Garnero responded that the zero note was predicated on a presentation using Microsoft Excel. She agreed that if they moved into a different type technology, the note would not be zero. She mentioned the Alaska Data Enterprise Reporting System is currently being built to replace the now used twenty-there year old system. The data warehouse has made the Department able to generate the excel spreadsheet. Representative Hawker reiterated that the language proposed in the bill does not take the State in the direction referred to by the Department. Representative Kelly worried if the process could drive private business away from continuing business with the State of Alaska because of the amount of information required. He recommended adding a sunset date to track the development. Representative Gara interjected that Page 4 describes the confidentiality statement and that nothing confidential would be allowed on the website. 11:44:56 AM Vice-Chair Stoltze MOVED to REPORT CSSB 201(FIN) out of Committee with individual recommendations and with the accompanying zero note. Representative Hawker OBJECTED. A roll call vote was taken on the motion. IN FAVOR: Nelson, Stoltze, Thomas, Crawford, Gara, Joule, Meyer OPPOSED: Hawker, Kelly Representative Chenault and Representative Foster were not present for the vote. The MOTION FAILED (7-2). CS SB 201(FIN) was REPORTED out of Committee with a "no recommendation" and with zero note #1 by the Department of Administration.