HOUSE BILL NO. 182 "An Act relating to distribution of annual reports by state agencies." Vice-chair Fairclough MOVED to ADOPT proposed committee substitute for HB 182 (FIN) Work Draft 27-LS0573\R as a working document. There being NO OBJECTION it was so ordered. REPRESENTATIVE KYLE JOHANSEN explained that the bill takes all the requirements in statute that have been written in the past 40-50 years that require departments to print, publish, and distribute actual pamphlets and annual reports. The bill originally just involved annual reports, but the State Affairs Committee expanded it to include all reports required by statute, to be distributed electronically. There are some exceptions. The department commissioners would make a final determination if reports needed to be printed and published. He gave an example of why printed material has been needed in the past. HB 9 came about when a person in the Department of Commerce indicated the need for a $250,000 increment. When asked why, the person noted rising printing costs and the requirement in statute for all reports to be printed. In 2011, the Office of Management and Budget (OMB) predicted a projected $1.6 million savings. The fiscal note is indeterminate. 10:21:48 AM Representative Costello commented that when the Arctic Policy Council legislation passed out, the fiscal notes did include printing report costs. When fiscal notes are prepared, departments assume that the reports are wanted in a printed format. She believed the bill moves in a great direction. There could be considerable cost savings and thanked the sponsor. Co-Chair Stoltze noted that the default position would be electronic reports unless there is a justifiable reason for the material to be printed. Representative Johansen agreed that was correct. Giving the department commissioners the authority to make the decision would force the department to justify their request to have the material printed. 10:24:01 AM DEITRA ENNIS, DEPUTY MUNICIPAL ATTORNEY, ANCHORAGE (via teleconference) spoke in support of the bill. The municipal language earlier referenced speaks to noticing requirements to tax payers for closer and redemption periods. She stressed the importance in the bill of not eliminating mail requirements. It allows the municipality to add electronic notice to the newspaper notice. There are significant benefits of the bill: costs, updating and flexibility, and more helpful information available. The bill allows the municipality to decide the most effective method to reach taxpayers. Estimated savings was $500,000 for the first year on information brought online. 10:27:10 AM Representative Edgmon asked if, under law, the municipality was not already able to do it. Ms. Ennis replied that it would not apply for the last 15 days, because some information must be delivered to the newspaper so far in advance. Representative Gara MOVED Amendment 1, 27-LS0573, Kirsh, 3/15/12. (Copy on file) AMENDMENT 1 OFFERED IN THE HOUSE TO: CSHB 182(), Draft Version "T" Page 3, lines 29 - 30: Delete "required by statute to produce and distribute" Insert "that produces and distributes" Page 4, lines 1 - 2: Delete "The agency shall provide and post the report for one year or until it is superseded, whichever occurs first." Page 4, line 3: Delete "those" Page 4, following line 14: Insert a new section to read: "Sec. 44.99.380. Graphic design for annual reports. Notwithstanding AS 44.99.200, when preparing annual reports, a state agency may not (1) print color copies unless color is needed for the reader to understand the material; (2) hire contractors to provide photographs or graphics unless (A) no agency employee qualified to perform the work is available; or (B) the agency would use fewer state resources by hiring a contractor." Vice-chair Fairclough OBJECTED for purpose of discussion. Representative Gara worked with the sponsor and the Department of Law to make the changes reflected in Amendment 1. He noted that a lot of agencies produce reports so his amendment allows all agency reports to be posted electronically. On page 4, lines 1-2, states that the reports will be done electronically, but also states the report must be removed after one year. Representative Gara noted that there are people who would like to see information for more than one year. The position in the amendment gives the agency the discretion to leave information on the website longer if it serves the public interest. The most important part starts on page 4 with the desire to save money. In annual reports there may be no need for color or the necessity to hire outside graphic designers or photographers. The change would indicate that "unless it is needed" the report should not be in color and the agency should do its own work. Vice-chair Fairclough asked if the sponsor approved of the amendment. Representative Johansen agreed with the changes. He believed the suggestions improve the bill. Co-Chair Stoltze WITHDREW his OBJECTION to Amendment 1. There being NO Further OBJECTION, Amendment 1 was adopted. Representative Neuman mentioned that the lack of government information is not helpful when people want to be involved. He asked if someone wanted the paper documentation, would it be available. Representative Johansen read from page 4, line 13-14, where it states that a person can obtain a print copy of a report from the Alaska State Library Distribution and Data Access Center. The bill also states that the department commissioner have the authority to decide whether a document should be distributed widely. Representative Neuman commented that a lot of rural communities do not have accessible libraries. Co-Chair Stoltze reported that most people today have computer access. 10:35:08 AM Representative Johansen mentioned that access was a concern brought up by a librarian in Ketchikan. The bill was written to make sure that the Alaska State Library Distribution Center, which is connected to every library in the state, had the information. He also stated that 80 percent of households in Alaska have internet access. Co-Chair Stoltze CLOSED public testimony. 10:36:54 AM Vice-chair Fairclough MOVED to report CSHB 182(FIN) out of committee with individual recommendations and the accompanying fiscal note. There being NO OBJECTION, it was so ordered. CSHB 182(FIN) was REPORTED out of committee with a "do pass" recommendation and with one new indeterminate fiscal note from the Office of the Governor.