SENATE STATE AFFAIRS COMMITTEE February 11, 1997 3:35 p.m. MEMBERS PRESENT Senator Lyda Green, Chairman Senator Jerry Ward, Vice-chair Senator Jerry Mackie MEMBERS ABSENT Senator Jim Duncan COMMITTEE CALENDAR OVERVIEW AND REPORT: GOV., BOARDS AND COMMISSIONS SENATE BILL NO. 68 "An Act relating to the Task Force on Privatization; and providing for an effective date." - SCHEDULED BUT NOT HEARD PREVIOUS SENATE COMMITTEE ACTION SB 68 - No previous Senate committee action to report. WITNESS REGISTER Cindy Smith Coordinator, Boards and Commissions Office of the Governor P.O. Box 110001 Juneau, AK 99811-0001 POSITION STATEMENT: Provided information on Boards and Commissions ACTION NARRATIVE TAPE 97-3 , SIDE A Number 000 CHAIRMAN LYDA GREEN called the Senate State Affairs Committee meeting to order at 3:35 p.m. and announced Senator Duncan was attending a Legislative Ethics hearing. Senators Green, Ward, Mackie, and Miller were present. She announced SB 68 would be delayed until Thursday, or the next meeting. The first order of business before the committee was an overview of the Governor's boards and commissions. OVERVIEW: GOV'S BDS AND COMMISSIONS CINDY SMITH, Coordinator of Boards and Commissions in the Office of the Governor, provided the following testimony to the committee. There are presently 127 boards and commissions in state government whose members are named, in whole or in part, by the Governor. The total public membership of those boards is 1,138 people. Although meeting schedules vary for each board, approximately 380 meetings are held each year. Boards and Commissions handles nominations for various federal boards, Governor's task forces, and White House conferences, which average between 100 and 250 individuals per year. The Boards and Commissions Office operations are large and ongoing; information changes almost weekly as members resign or terms expire. An ongoing applicant base of 500 to 700 individuals is kept, as well as an equal number of letters of endorsement for candidates. The Boards and Commissions Office also handles nominations for judgeships. Since Governor Knowles took office, there have been nominations for one District Court seat, eight Superior Court seats, and two Supreme Court seats. About 30 terms expire each month, and between 10 and 25 letters of resignation are received each quarter; those numbers vary widely from month to month. Most board members are not compensated; travel expenses are not always covered. Many boards meet via teleconference. Almost 1200 people contribute their time and energy to state government on a volunteer basis which makes government stronger. Ms. Smith is pleased with the amount of nominee participation, but believes that involvement needs to be further encouraged and ensured as it is an important component of a democracy. Number 108 CHAIRMAN GREEN explained the committee scheduled this hearing to get information on the nomination process, on the policy of replacing members, and to investigate potential savings and efficiencies through board mergers and repeals, because the Legislature would like to be informed and participate in the process to a greater extent than it currently does. Chairman Green referred to her request of the names of board members who were, and were not, reappointed, and asked Ms. Smith why a list of those who were not reappointed was not provided. MS. SMITH responded her office does not retain that information. Many inquiries or discussions about reappointments occur on the telephone, and almost never in writing, probably because those involved are volunteers and are busy. If no written material is received, there is no system in place to log contacts. Information is pertinent when an appointment is being deliberated, but not after it is made. Number 163 SENATOR WARD asked if any of the nominations are in written form. MS. SMITH replied some board members and nominees send requests in writing, but the majority of membership contacts occur on the telephone. SENATOR WARD confirmed there are some requests in writing. MS. SMITH agreed. SENATOR WARD asked if those requests were supplied to the committee. MS. SMITH explained she would have had to review two years of file information to determine which members had written requests. SENATOR MILLER believed a miscommunication occurred, and that the information can be easily provided. He clarified the committee was asking whether there were people who had actually served on boards who were not reappointed. That information could be obtained by providing annual or quarterly membership lists from prior years to current membership lists. That information would not disclose why members were not reappointed, but would be an easy way to pull out the information requested by Chair Green. MS. SMITH verified those lists contain the dates of appointment, and a review of membership reappointments at the time Governor Knowles took office and would show about one-half were reappointed from the former Administration. Her office is interested in retaining competent members and is not necessarily looking for new business in the administration of boards. The boards, by and large, are administrative in their function, and require knowledgeable members. She noted she does not have information on the number of people who asked to be reappointed and believed that information would be cumbersome to compile and would be inaccurate. CHAIRMAN GREEN asked whether the Boards and Commissions Office is required to keep any information about previous appointees on file. MS. SMITH responded all of the files from the former Administration were archived so current files contain correspondence between current board members. CHAIRMAN GREEN asked if that information is kept on disc. MS. SMITH replied it is not. CHAIRMAN GREEN stated she would still like a list of the names of those members who were not reappointed. MS. SMITH said she would see if that is possible. Number 206 SENATOR WARD said he appreciated Ms. Smith's opening remarks in regard to the importance of public participation on boards and commissions and believed if a process to ensure a fair sampling of the public who want to participate in the boards and commission process is not in place, review is necessary. He was not sure whether a problem with the nominee process exists, but expressed concern with the lack of a record of phone contacts. MS. SMITH affirmed all applications are received in writing and are accepted from anyone, anywhere, anytime. She noted she gives boards and commissions workshops on request by anyone, and offered to do so in Senator Ward's district. The vacancy rosters are mailed to anyone who requests them. She is currently working on the state's web page to provide the same information on the internet. Her office has no interest in controlling who applies for board memberships. Her goal is to get the best and brightest Alaskans on boards. Regarding phone contact, her office encourages people to write, but often people prefer to call. Once a board appointment is made, information about other nominees is no longer essential to her office. She repeated she could provide a summary of the names of people who were retained, as that information is computerized, but she does not have that kind of information for every individual transaction. She explained those transactions may number in the thousands in the course of one year. Number 240 SENATOR WARD asked Ms. Smith is she keeps a log of the names of people who call her office who want to participate or be reappointed. MS. SMITH replied she keeps that information in the form of working notes while she is working on particular appointments, but after the appointments are made, she discards them. SENATOR WARD questioned why she does not retain the information. MS. SMITH stated she does not because of the large volume. Her office receives many calls, and the information may no longer be useful. If a person is not reappointed and wants to continue to serve on a board, she does her best to appoint that person to a different board. CHAIRMAN GREEN announced House State Affairs Chair James joined the committee. SENATOR MACKIE asked whether the public interest in board vacancies is overwhelming, or whether it is difficult to find people to serve. MS. SMITH replied it depends on the level of public interest in each board. The public seats on licensing boards are consistently some of the most difficult to fill and is one of the areas with a shortage of applicants. The number of applications for some board vacancies is overwhelming. When a vacancy is filled, all applicants receive a letter informing them of the appointment. SENATOR MACKIE asked for the total number of boards and commissions. MS. SMITH repeated the Governor appoints to 127 boards and commissions, but that number fluctuates. SENATOR MACKIE asked how many seats are represented on those boards. MS. SMITH replied there were 1,132 public members at last count. SENATOR MACKIE referred to the list of current board and commission members and asked whether that list contained the names of everyone currently serving on boards. MS. SMITH answered the list contains only the names of members who were reappointed; the board book provided to committee members contains the names of all board members. SENATOR MACKIE questioned whether the listed vacancies are the result of a lack of public interest. He noted there are three vacancies for public members on the Arts Council and three vacant positions on the Juvenile Justice and Family Services Commission. He also asked whether there are some boards with no membership, and whether the vacancies on some boards render them unable to meet because of the lack of a quorum. He questioned whether the Administration has intentionally decided to not fill vacancies on certain boards for specific reasons. Number 330 MS. SMITH responded, for the most part, the list in front of committee members will be history by the end of March. The active list is continually updated, and contains between 100 to 150 vacancies because of term expirations and resignations. Some positions are purposely kept vacant because they are optional seats. The Arts Council had one member resign, and another died; those vacancies will be filled before it meets at the end of the month. The Juvenile Justice Advisory Task Force vacancies are for members under the age of 24; members in that age group tend to move a lot so it is difficult to keep those seats filled. The Human Resource Investment Council is an example of a board with seats purposely kept vacant. Up to 26 seats can be appointed to that Council: as seats are vacated, the statutorily required seats are filled, the others are left vacant to save money. Her office has been discussing the possibility of a merger with members of the Governor's Committee on People with Disabilities, the Rehabilitation Advisory Council, and a board named through the Division of Vocational Rehabilitation on assistive technology. The Governor's Committee was statutorily established around the time of Statehood. The Rehabilitation Advisory Council was established by the federal government about two years ago. Both boards have very similar missions. The money saved from a consolidation of those boards can be redirected to client services. Number 368 SENATOR MACKIE asked if there is an effort in Ms. Smith's office to identify boards that could be consolidated or eliminated to reduce costs. MS. SMITH replied, other than the previous example she provided, the Athletic Commission has been unable to raise funds to meet its statutory requirements for its duties, and the Citizens Advisory in Federal Areas is in a holding pattern and is not proposed for funding in the Governor's budget. Many of the boards are working smarter, and are encouraged to meet by teleconference and to meet at central locations. She is also trying to encourage more geographic diversity among board members to provide improved statewide representation. CATHERINE REARDON, Director of the Division of Occupational Licensing (DOL) in the Department of Commerce and Economic Development, informed committee members DOL works with 20 of the 127 boards. Licensing boards vacancies are some of the more difficult to fill. In her experience at DOL, the Governor's Office has asked her to pass along names and encourage any interested individuals to call the Boards and Commissions Office. There is a legislative process for review of the occupational licensing boards to determine whether those boards continue to fulfill their functions. Six boards are up for expiration in June, 1997. The Legislative Budget and Audit Division also reviews those boards and legislation for extension will be introduced. On the subject of the Athletic Commission, the Governor proposed legislation two years ago to eliminate that Commission. That proposal was part of one of the Governor's omnibus bills that did not pass the Legislature. Draft legislation to remove that board, and to reduce the regulation of boxing, has been prepared. A second alternative is to bring the Athletic Commission under sunset review, as it predates the sunset process. Most licensing boards meet twice per year and vacancies do not usually inhibit a board's ability to function. Vacancies are usually filled prior to the next meeting. She believed the Administration's effort to establish more geographic diversity among board members has been helpful in bringing a variety of perspectives to meetings. Number 451 SENATOR MILLER stated many of the boards are political in nature, for example the Board of Education which undergoes a wholesale change when Administrations change, and that is to be expected but in his opinion, some boards should not be political in nature, for example, the Permanent Fund Board. He believes professional licensing boards are non-political in nature, yet wholesale changes in membership occurred and many members were dumped mid-term while, according to Ms. Smith, those vacancies are difficult to fill. He asked why many members of those boards were asked to leave mid-term and asked Ms. Smith to correct any erroneous information he may have received, but noted he is disturbed that members of non- political boards were asked to leave mid-term. He repeated the committee and Legislature need hard numbers to resolve this question, especially since many regulatory board members need legislative confirmation. MS. SMITH responded she will have to review files to compile the information. She suspected many changes to the regulatory boards could be attributed to public or professional concerns, and did not feel competent to address the legal issue of which boards serve at the pleasure of the Governor. She stated different Administrations have different philosophical approaches to service delivery or working style, which can account for membership changes. She noted situations arise among board members that require the Governor's attention, such as the State Medical Board member who had a relationship with a client. She refuted the idea that wholesale membership changes occur for political reasons only. Number 510 SENATOR MILLER repeated the committee needs to know the reasons for the wholesale changes made to boards, particularly the regulatory boards. He stated it is usually beneficial to have some continuity on those boards. MS. REARDON commented on the few boards that have been substantially changed, at least one member was maintained to provide continuity. From her perspective, board member removals were related to public concerns or policies related to the profession, not to electoral politics. CHAIRMAN GREEN indicated she would like to know the specific problems that were occurring that warranted replacement of so many regulatory board members. She also asked for a list of the board seats which are being kept vacant and whether the members of those boards know of that intention. MS. SMITH replied those board members are almost certainly aware of the reason for the continued vacancies. SENATOR MACKIE questioned whether members who are removed or not reappointed are notified as to the reason. He is concerned about the citizens who have volunteered a substantial amount of time and are suddenly removed. MS. SMITH stated ultimately, the choice to remove or replace a board member is up to the Governor, however procedurally, those people are notified in writing, and she also tries to contact them by phone. Number 545 SENATOR MACKIE asked if anyone within the Administration is actively reviewing whether any boards can be eliminated or consolidated. MS. SMITH replied there are several people looking at boards to see what they are doing, and OMB is predisposed to review board activities. To the degree that any efficiencies in state government can be achieved, either through combination or reduction of mission, the Administration is on the alert. SENATOR MACKIE commented there will always be a constituency for every board, and expressed concern that everyone involved act responsibly in the attempt to become more efficient. He endorsed Senator Green's statement that the Legislature is willing to help achieve some of those efficiencies. He asked if a description of the functions of the boards and a list of which boards were statutorily created is available. MS. SMITH replied a book was provided to the committee chair that describes each board's function, memberships, number of meetings, and contact information. Those books are available to the public. She indicated many more boards, other than the regulatory boards, have sunset provisions that provide for legislative review, and the Legislative Budget and Audit report contains recommendations about specific boards. Number 582 CHAIRMAN GREEN indicated she would like copies of correspondence sent to people who were removed from boards and a list of those boards whose members serve at the Governor's pleasure. TAPE 97-3, SIDE B Number 590 Referring to the third question in her correspondence to Ms. Smith, CHAIRMAN GREEN stated she would still like to know if there are problems board members request her office to resolve, such as changes to the composition or organization of a board, or problems working with an executive director, that she cannot resolve. She asked the number of active applicant names that are kept. MS. SMITH answered about 500. SENATOR WARD asked whether a written procedure exists for deciding which board members will be retained when a wholesale change in membership occurs and whether all board members decide who should be retained for the sake of continuity. MS. REARDON believed the decision about who is retained is ultimately up to the Governor. She meant, by her previous statement about continuity, that generally, one person who has been seated for awhile is retained so that one member knows the history of previous board actions. She believed the Governor and his staff do the most responsible job they can to ensure board members are chosen based on the strengths and skills they bring to the boards. SENATOR WARD agreed continuity is important, and questioned whether its importance warrants legislative participation in determining procedures to ensure it occurs. MS. SMITH said she was uncomfortable answering the question because the Constitution sets out certain appointment authorities. She reiterated that her office tries to be sensitive to the fact that it is not in the public's best interest to completely replace all board members but the decisions behind replacements is within the province of the Office of the Governor. No one has objected to the choices of the members that were retained. The level of competence of members was high and was not a factor in the changes. SENATOR WARD clarified he was questioning whether a retention policy exists because he thought a systematic procedure was undertaken. He added he does not disagree with the political nature of the system. MS. REARDON commented, from her perspective in DOL, very few boards underwent changes for reasons other than term expirations and those dates are staggered by law to facilitate continuity. She got the impression the committee believes wholesale changes were made to regulatory boards, which was far from the case. Number 508 CHAIRMAN GREEN asked Ms. Reardon to supply her with a written report on specific removals and reappointments that occurred simultaneously to the Alcohol Beverage Control Board, the Board of Dental Examiners, the State Medical Board, the Psychologists' Board, the Real Estate Appraisers' Board and the Real Estate Commission. MS. REARDON replied the statistics on when members were reappointed can be provided, but the report on why those decisions were made is in the Governor's purview, as he is the appointing official. CHAIRMAN GREEN asked her to review the broad change that occurred and provide the numbers of those replaced on the specific boards she referred to. CHAIRMAN GREEN commented she was told two or three professional regulatory boards have had difficulty meeting because of a lack of a quorum due to unfilled vacancies. She would provide Ms. Smith with the names of those boards at a later date. She referred back to the list of vacancies, to review which boards might provide opportunities for mergers or repeal and questioned whether an omnibus bill or separate bills would be introduced. MS. SMITH was unsure which mechanism would be used. CHAIRMAN GREEN stressed the importance of getting information from the Boards and Commissions Office because although each legislator may feel strongly about at least one board, he/she may know nothing about most other boards. She asked about the Community Service Commission. MS. SMITH advised the Community Service Commission is federally mandated and was founded to distribute Americorps Funding. The vacancies on the board are optional seats and the Commission has plenty of members to provide a quorum. CHAIRMAN GREEN asked whether its funding source is federal. MS. SMITH replied it is. Number 460 SENATOR WARD asked how much money that commission appropriates each year. MS. SMITH did not have that number with her. SENATOR WARD questioned whether the Take Pride in America Program is affiliated with that Commission. MS. SMITH answered the Americorps Program provides funds to local providers for programs such as SAGA, and repeated she was not familiar with the amount of funds distributed. CHAIRMAN GREEN asked if current Commission members are aware the vacant seats will not be filled, and whether those vacancies impact that Commission in any way. MS. SMITH answered the Commission meets about three times per year. The federal mandate does not specify the number of members, but allows membership to be between 15 and 25 individuals. CHAIRMAN GREEN repeated her concern that current members be informed of the reason vacancies are not filled. CHAIRMAN GREEN asked about the Compensation Commission. MS. SMITH explained the State Officers' Compensation Commission was founded to review and make salary recommendations for exempt positions. It has not received funding during the knowles Administration and is inactive. CHAIRMAN GREEN asked what would be required to activate that Commission. MS. SMITH replied the Commission used to have a budget, but the Legislature zeroed it out. CHAIRMAN GREEN asked if that Commission is statutorily required. MS. SMITH believed it is. SENATOR MACKIE asked whether all costs for federally mandated commissions, such as the Community Service Commission, are paid for with federal funds. MS. SMITH stated she is not familiar with the funding mechanisms of all boards and commissions, but thought that commission might receive a very small amount of state funds. SENATOR MACKIE asked how many other boards might not require state general funds. MS. SMITH replied she could get the answer to the Senator's question from OMB, and offered to additionally provide him with a list of the federally mandated boards. SENATOR MACKIE asked if the state must participate on federally mandated boards to qualify for funding. MS. SMITH answered affirmatively. Number 404 CHAIRMAN GREEN mentioned she was previously a member of the Governor's Council on Handicapped and Gifted; a federally mandated council. In conversations with members of other boards, it became obvious many boards have common threads and serve the same constituency. She asked whether it is possible to create a balloon board to oversee boards with similar missions to eliminate duplicative efforts, and still meet federal mandates. MS. SMITH said the answer is "sometimes." One recent successful merger incorporated the Vocational Career Education Board, the JTPA Board and two others into the Human Resource Investment Council. In trying to combine the Governor's Committee on Employment for People with Disabilities, the Rehabilitation Advisory Council and the Assistive Technologies Board, she worked with the regional office of the federal government to obtain permission. CHAIRMAN GREEN felt that is the right track because their issues are combined. MS. SMITH clarified the vacancy list she provided to the committee is a worksheet and may continue to reflect vacant seats on the boards that have been merged so that people are not unnecessarily bumped when a single, smaller board is created. The vacancies may, or may not, be the seats of members absorbed into other boards. CHAIRMAN GREEN asked about the Federal Areas Citizens' Advisory Committee. MS. SMITH responded that Committee was originally formed as a temporary advisory agency in 1981. Neither the Legislature nor the Governor's Office has currently appointed members to vacant seats. CHAIRMAN GREEN affirmed the Governor's Office has made no appointments to that board since 1996 and asked how that board would be reactivated. MS. SMITH said the board would need a budget within DNR. SENATOR MACKIE asked if each board and commission has a separate budget within different departments. MS. SMITH said most do have a budget, the amounts vary considerably, and are in various departments. She noted legislative oversight exists in the budget arena as well. MS. REARDON explained in the case of licensing boards, an appropriation is made to the Division of Occupational Licensing. Those funds come from licensing fees. SENATOR MACKIE asked whether any vacancies are difficult to fill because of a lack of interest, or because the board doesn't do anything, and whether any of those boards can be eliminated. He noted sunset reviews are controversial and political in nature. He hoped the committee could assist Ms. Smith in consolidation and/or elimination efforts. MS. SMITH recalled the last effort made in that area was by the joint committee put together by Mr. Babcock. She believes the process of eliminating a board is difficult because volunteer boards are an inexpensive service delivery mechanism for the state. One must look at the costs as well as the benefits, and determine whether a less expensive way of getting the same services exists. Number 275 SENATOR MACKIE told Ms. Smith he appreciates her enthusiasm and efforts to boost participation in state government, and hoped the committee's comments were not interpreted as suggesting that boards cost more than they are worth. He believes it is very worthwhile for the Legislature to periodically examine all activities within the state to determine whether those activities continue to be worthwhile. CHAIRMAN GREEN asked Ms. Smith to return before the committee next Tuesday to continue review of the list of vacancies and other questions. REPRESENTATIVE JAMES asked if staff is made available to boards or if boards must hire their own staff. MS. SMITH replied, for the most part, boards have staff, but increasingly the work is performed by employees who are providing staff services in their spare time. She felt the budget process is an important place to ask those questions to ensure boards can do their jobs. Number 233 CHAIRMAN GREEN asked Ms. Smith to review the January 20 letter and provide the following: 1. the names and numbers of those not reappointed; 2. the method of notification for those replaced; 3. copies of all correspondence to incumbent boards and commission members and copies of all letters from incumbent board and commission members; 4. a list of all applicants for each seat filled on boards; 5. the amount of time each seat remained vacant for each board or commission, particularly those seats that remain vacant; 6. confirmation of Mr. Ayers' response to question #7 and whether that response includes the full extent of the procedure used by the Boards and Commissions Office; and 7. information on the policy and process used to determine mid-term replacements. CHAIRMAN GREEN stated her intent in obtaining this information is to seek improvement and to answer constituent inquiries about the process. She added she is still very concerned that some boards were almost decimated, even though they have not come up for discussion at this hearing. She is concerned that people who serve on boards not be embarrassed by an untimely replacement, particularly those in professional positions. She asked how people who are full-time employees are notified that they will not be retained. Number 165 SENATOR WARD asked Ms. Smith to provide the committee with information on recruitment or contact procedures of nominees and for recommendations as to how the committee might be able to help get more information out about boards and commissions because most Alaskans are unaware of vacancies and how to apply. CHAIRMAN GREEN adjourned the meeting at 5:03 p.m.