HOUSE BILL NO. 127 "An Act clarifying that the Alaska Bar Association is an agency for purposes of investigations by the ombudsman; relating to compensation of the ombudsman and to employment of staff by the ombudsman under personal service contracts; providing that certain records of communications between the ombudsman and an agency are not public records; relating to disclosure by an agency to the ombudsman of communications subject to attorney-client and attorney work-product privileges; relating to informal and formal reports of opinions and recommendations issued by the ombudsman; relating to the privilege of the ombudsman not to testify and creating a privilege under which the ombudsman is not required to disclose certain documents; relating to procedures for procurement by the ombudsman; relating to the definition of 'agency' for purposes of the Ombudsman Act and providing jurisdiction of the ombudsman over persons providing certain services to the state by contract; and amending Rules 501 and 503, Alaska Rules of Evidence." 10:21:29 AM BETH LEIBOWITZ, ASSISTANT OMBUDSMAN, OFFICE OF THE OMBUDSMAN, offered a sponsor statement: The Ombudsman Act (AS 24.55) has not changed much since enactment in 1975, which speaks well for its basic structure. The ombudsman requested and obtained some modifications of the Ombudsman Act in 1990. It has become apparent that the Ombudsman Act would benefit from updates to address several issues that have arisen since 1990. The following is a brief sectional description of the bill: · Section 1 of CSHB 127(JUD) provides that the ombudsman may receive a step increase in salary, rather than remaining Step A of Range 26 for the ombudsman's entire term or terms. · Section 2 clarifies the ombudsman's authority to hire additional staff using a personal services contract pursuant to AS 24.55.060(f). · Section 3 amends a section on the ombudsman's investigatory authority to refer simply to "agency" instead of "state agency." This brings the section into conformance with the rest of the Ombudsman Act (AS 24.55), which consistently refers to the ombudsman's authority to investigate an administrative "agency." · Section 4 prevents a general waiver of attorney- client privilege by an agency if it shares its attorney's advice with the Officer Ombudsman in order to explain the agency's actions. · Section 5 improves the wording of the ombudsman's existing privilege not to testify or produce records regarding matters brought to the ombudsman's attention in the course of her duties. · Section 6 modernizes the ombudsman's procurement authority. · Sections 7 and 8 state that sections 4 and 5 are indirect court rule amendments because they modify evidentiary rules, and that therefore sections 4 and 5 only take effect if the legislation is approved by a two-thirds majority vote of each house, as required by Art. IV, Section 15 of the Constitution of the State of Alaska. 10:26:41 AM LINDA LORD-JENKINS, STATE OMBUDSMAN, ANCHORAGE (via teleconference), supported the comments provided by her assistant. Representative Guttenberg asked whether sections 4 and 5. applied when the ombudsman was not an attorney. Ms. Leibowitz clarified that the section did not speak to attorney-client privilege. She said that the privilege was typical of ombudsman statutes and was designed to keep the ombudsman from being a witness in other forms of litigation. Representative Guttenberg understood that the courts could not compel an ombudsman or their staff under Section 5. Ms. Leibowitz replied that that was her understanding of the section. 10:29:13 AM Co-Chair Stoltze asked about jurisdiction and interface between criminal activities of a statutorily empowered agency. Ms. Lord-Jenkins replied nothing had changed in the way the office had historically handled those matters. Co-Chair Stoltze CLOSED public testimony. HB 127 was HEARD and HELD in committee for further consideration.