SB 171-DOA PAYMENTS; REPEAL OTHER DOA DUTIES  9:39:17 AM CHAIR STOLTZE announced the consideration of SB 171. DANIEL GEORGE, Staff, Senator Stoltze, Alaska State Legislature, Juneau, Alaska, stated that the CS for SB 171(STA), version H, was adopted during the 3/24/16 hearing. He explained that the CS inserted into the statutes for: the state's online-checkbook system, fiscal-note inclusion, and department appropriation and allocation. He added that fiscal note revisions by the Department of Administration were done as well. CHAIR STOLTZE requested that Mr. George review the revised fiscal notes. MR. GEORGE explained that the previous fiscal note from the Department of Administration contained the addition of three- fulltime positions and several hundred-thousand dollars of personal services as well as $81,000 of commodities starting in FY17. He opined that the fiscal note was fairly significant. He detailed that Commissioner Fisher from the Department of Administration worked with the committee's office to help reduce the fiscal impact to the state while implementing a policy that ensured transparency to the public. He revealed that the new fiscal note reflected no personal-services costs as well as a reduced services cost in FY17 and FY18, and no additional personnel. He added that the revised fiscal note was contingent on the adoption of Amendment 3. MR. GEORGE added that the CS requires the university system and court system to participate in the state's managed-travel program. He noted that the court system presented a fiscal note with thorough analysis in a previous meeting that participation in the state's managed-travel program was not cost effective. He added that the university system's president submitted a letter addressing participation in the managed-travel program, but a fiscal note was not provided. 9:42:47 AM CHAIR STOLTZE withdraw Amendment 1. [Amendment 1 was not offered but was in the bill packet.] CHAIR STOLTZE moved to adopt Amendment 2, labeled 29-GS2811\H.1. AMENDMENT 2  OFFERED IN THE SENATE TO: CSSB 171(STA), Draft Version "H" Page 2, lines 14 - 18: Delete all material. Renumber the following bill sections accordingly. Page 6, line 8: Delete "sec. 6" Insert "sec. 5" Page 6, line 12: Delete "sec. 6" Insert "sec. 5" CHAIR STOLTZE explained that Amendment 2 removes the court system from participating in the state's managed-travel program. He opined that the court system made a case that participating in the managed-travel program would not provide efficiencies. He announced that hearing no objection, Amendment 2 was adopted. CHAIR STOLTZE moved to adopt Amendment 3, labeled 29-GS2811\H.5 AMENDMENT 3  OFFERED IN THE SENATE TO: CSSB 171(STA), Draft Version "H" Page 2, lines 11 - 12: Delete ", approving, purchasing, and reimbursing" Insert "and purchasing" Page 6, line 8: Delete "October 1, 2016" Insert "January 1, 2017" Page 6, line 12: Delete "must," Page 6, lines 13 - 14: Delete "list information from the previous fiscal year. Beginning on October 1, 2017, the list shall be updated monthly or annually, as specified" Insert "must implement and expand a public data portal as follows: (1) Software for expenditure transactions, by July 1, 2017; (2) Employee-payroll transactions, by January 1, 2019; (3) Revenue transactions, by January 1, 2020" SENATOR COGHILL objected for discussion purposes. MR. GEORGE explained that Amendment 3, version H.5, replaces Amendment 1. He clarified that the state managed-travel program does not approve someone's travel or reimburse them, but simply dealt with purchasing the travel. He added that the state's online-checkbook would be delayed three months to January 1, 2017 to help defray costs. He said Amendment 3 also added transitional language regarding the implementation timeline for the state's online-checkbook as well as software expenditures and implementation payroll and revenue. 9:45:09 AM SCOT AREHART, Director, Division of Finance, Department of Administration, Juneau, Alaska, testified that the fiscal note was modified by scheduling software implementation in phases that used current resources within the division. CHAIR STOLTZE asked Mr. Arehart to confirm that scheduling coordination would occur with other major upgrades that the division was already doing. MR. AREHART answered correct. CHAIR STOLTZE asked if there were any objections to Amendment 3. SENATOR COGHILL removed his objection. CHAIR STOLTZE announced that hearing no objection, Amendment 3 was adopted. CHAIR STOLTZE moved Amendment 4, labeled 29-GS2811\H.6. AMENDMENT 4  OFFERED IN THE SENATE TO: CSSB 171(STA), Draft Version "H" Page 1, lines 2 - 3: Delete "the Department of Administration's  managed travel program" Insert "negotiated state contracts to make  arrangements for persons traveling on official  business" Page 2, lines 8 - 18: Delete all material and insert: "Sec. 14.40.335. Use of negotiated state  contracts. The University of Alaska shall use state contracts negotiated by the Department of Administration to make arrangements for a person traveling on official business." Renumber the following bill sections accordingly. Page 6, line 8: Delete "sec. 6" Insert "sec. 5" Page 6, line 12: Delete "sec. 6" Insert "sec. 5" SENATOR COGHILL objected for discussion purposes. 9:47:00 AM MR. GEORGE explained that Amendment 4, version H.6, clarified that the university system would use the Department of Administration's already negotiated travel contracts and that the university can become a separate entity under the contracts. CHAIR STOLTZE pointed out that the amendment was requested by Commissioner Fisher. SENATOR COGHILL withdrew his objection. SENATOR WIELECHOWSKI asked if the university supports Amendment 4. CHRIS CHRISTENSEN, Associate Vice President of State Relations, University of Alaska, Anchorage, Alaska, remarked that the amendment takes care of part of the problem. He pointed that the university has reduced its unrestricted-travel budget by approximately 30 percent over the past three and a half years. He stated that the university's preference would be that the language instruct the university system to use the state's contracts or adopt a travel system that provides an equivalent or greater cost savings and efficiencies. He expressed that the university system could conceivably come up with a system that works better. He noted that more than half of the university system's travel was actually federally funded due research grants and Medicaid travel. 9:50:16 AM SENATOR WIELECHOWSKI asked if Mr. Christensen supported Amendment 4. MR. CHRISTENSEN suggested that language be added that allowed greater flexibility for the university system to use either the state's managed-travel program or its own travel system if savings were equal or greater than the state's managed-travel program. CHAIR STOLTZE noted that the Senate State Affairs Committee was the first committee of referral and the bill would go through both the Senate and House finance committees. He reiterated that the bill was a placeholder for further discussions and possible changes. 9:52:58 AM CHAIR STOLTZE announced that Amendment 4 was adopted without objection. 9:53:25 AM SENATOR COGHILL moved to report the CS for SB 171(STA), as amended, from committee with individual recommendations and attached fiscal notes. CHAIR STOLTZE objected for Senator Wielechowski to make a statement. SENATOR WIELECHOWSKI stated that he appreciated the online- checkbook additions. He noted that Alaska was dead last in the country regarding an online-checkbook system which led to a severe lack of transparency in what was happening in government. He said the bill would get the state to the point where people can have more confidence in what was happening in the government. He added that he appreciated what was done regarding savings as well. CHAIR STOLTZE removed his objection and announced that without objection, CSSB 171(STA) moved out of committee.