(a) Before the termination, dissolution, continuation, or reestablishment of a board or commission under AS 08.03.010 or AS 44.66.010, a committee of reference of each house, which shall be the standing committee of legislative jurisdiction as provided in the Uniform Rules of the Legislature, shall hold one or more hearings to receive testimony from the public, the commissioner of the department having administrative responsibility for each named board or commission, and the members of the board or commission involved. The hearings may be joint hearings. The committee shall also consider the proposed budget of the board or commission prepared in accordance with AS 37.07.050(f) and the performance audit of the activities of the board or commission prepared by the legislative audit division as prescribed in AS 24.20.271(1). The committee may consider any other report of the activities of the board or commission, including annual reports, summaries prepared by the Legislative Affairs Agency, and any evaluation or general report of the manner of conduct of activities of the board or commission prepared by the office of the ombudsman.

(b) During a public hearing, the board or commission shall have the burden of demonstrating a public need for its continued existence or the continuation of the program and the extent to which any change in the manner of exercise of its functions or activities may increase efficiency of administration or operation consistent with the public interest.

(c) A determination as to whether a board or commission has demonstrated a public need for its continued existence must take into consideration the following factors:

(1) the extent to which the board or commission has operated in the public interest;

(2) the extent to which the operation of the board or commission has been impeded or enhanced by existing statutes, procedures, and practices that it has adopted, and any other matter, including budgetary, resource, and personnel matters;

(3) the extent to which the board or commission has recommended statutory changes that are generally of benefit to the public interest;

(4) the extent to which the board or commission has encouraged interested persons to report to it concerning the effect of its regulations and decisions on the effectiveness of service, economy of service, and availability of service that it has provided;

(5) the extent to which the board or commission has encouraged public participation in the making of its regulations and decisions;

(6) the efficiency with which public inquiries or complaints regarding the activities of the board or commission filed with it, with the department to which a board or commission is administratively assigned, or with the office of victims' rights or the office of the ombudsman have been processed and resolved;

(7) the extent to which a board or commission that regulates entry into an occupation or profession has presented qualified applicants to serve the public;

(8) the extent to which state personnel practices, including affirmative action requirements, have been complied with by the board or commission in its own activities and in the area of activity or interest;

(9) the extent to which statutory, regulatory, budgetary, or other changes are necessary to enable the board or commission to better serve the interests of the public and to comply with the factors enumerated in this subsection;

(10) the extent to which the board or commission has effectively attained its objectives and purposes and the efficiency with which the board or commission has operated; and

(11) the extent to which the board or commission duplicates the activities of another governmental agency or the private sector.

(d) As to each board or commission assigned to it for purposes of review, the committee of reference shall, not later than the 60th day of the legislative session, submit a report to the presiding officer of the house. The report must contain a summary of the findings of the committee as to the compliance of the board or commission with the factors enumerated in (c) of this section, together with a summary or recommendations of the committee as to each of the following:

(1) an identification of the problems or the needs that the programs and activities of the board or commission are intended to address;

(2) a statement, to the extent practicable, of the objectives of the program of the board or commission and its anticipated accomplishments;

(3) an identification of any other programs having similar, conflicting, or duplicate objectives;

(4) an assessment of alternative methods of achieving the purposes of the program;

(5) an assessment of the consequences of eliminating the board or commission and consolidating its activities with another program or of funding it at a lower level;

(6) a justification for the recommended continuation or extension of the board or commission and an explanation of the manner in which it avoids duplication of or conflict with other efforts; and

(7) any other information that, in the opinion of the committee, would improve the performance of the board or commission with respect to its representation of and responsiveness to the public interest.

(e) The committee of reference may introduce a bill providing for the reorganization or continuation of the board or commission. Not more than one board or commission may be continued or reestablished in any legislative bill, and the board or commission must be mentioned in the title of the bill.