Legislature(2017 - 2018)HOUSE FINANCE 519

10/26/2017 09:00 AM LEGISLATIVE BUDGET & AUDIT

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Audio Topic
09:05:03 AM Start
09:06:23 AM Approval of Agenda
09:06:44 AM Executive Session
09:16:50 AM Other Committee Business
09:19:27 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Agenda: TELECONFERENCED
1. Call to Order
2. Approval of Agenda
3. Executive Session
a. Legislative Audit Procurement - AMHTA audit
4. Other Committee Business
5. Adjourn
                    ALASKA STATE LEGISLATURE                                                                                  
             LEGISLATIVE BUDGET AND AUDIT COMMITTEE                                                                           
                        October 26, 2017                                                                                        
                           9:05 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Bert Stedman, Chair                                                                                                     
Senator Cathy Giessel (via teleconference)                                                                                      
Senator Click Bishop (via teleconference)                                                                                       
Senator Lyman Hoffman                                                                                                           
Senator Natasha von Imhof (alternate) (via teleconference)                                                                      
                                                                                                                                
Representative Andy Josephson, Vice Chair                                                                                       
Representative Paul Seaton                                                                                                      
Representative Ivy Spohnholz                                                                                                    
Representative Jennifer Johnston (via teleconference)                                                                           
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Anna MacKinnon                                                                                                          
                                                                                                                                
Representative Scott Kawasaki                                                                                                   
Representative Dan Ortiz (alternate)                                                                                            
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
APPROVAL OF AGENDA                                                                                                              
EXECUTIVE SESSION                                                                                                               
OTHER COMMITTEE BUSINESS                                                                                                        
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
No witnesses to record                                                                                                          
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
9:05:03 AM                                                                                                                    
                                                                                                                                
CHAIR  BERT  STEDMAN  called the  Legislative  Budget  and  Audit                                                             
Committee meeting to order at  9:05 a.m.  Representatives Seaton,                                                               
Spohnholtz,  Johnston  (via  teleconference), and  Josephson  and                                                               
Senators    Bishop    (via    teleconference),    Giessel    (via                                                               
teleconference), Hoffman,  and Stedman were  present at  the call                                                               
to   order.     Senator  von   Imhof  (alternate)   arrived  (via                                                               
teleconference) as the meeting was in progress.                                                                                 
                                                                                                                                
^APPROVAL OF AGENDA                                                                                                             
                       APPROVAL OF AGENDA                                                                                   
                                                                                                                              
9:06:23 AM                                                                                                                    
                                                                                                                                
CHAIR STEDMAN  announced that the  first order of  business would                                                               
be approval of agenda.                                                                                                          
                                                                                                                                
9:06:28 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON  moved and asked unanimous  consent that                                                               
the Legislative  Budget and Audit  Committee approve  the agenda.                                                               
There being no objection, the agenda was approved.                                                                              
                                                                                                                                
^EXECUTIVE SESSION                                                                                                              
                       EXECUTIVE SESSION                                                                                    
                                                                                                                              
9:06:44 AM                                                                                                                    
                                                                                                                                
CHAIR STEDMAN announced that the  next order of business would be                                                               
an executive session.                                                                                                           
                                                                                                                                
9:06:53 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON  moved and asked unanimous  consent that                                                               
the  Legislative Budget  and Audit  Committee  go into  executive                                                               
session under  Uniform Rule 22,  for the purpose of  discussing a                                                               
procurement issued  related to a confidential  audit report under                                                               
AS  24.20.301.    He requested  that  the  following  individuals                                                               
remain in  the room or  on line:   Eileen Donahue,  Audit Manager                                                               
for  the   Alaska  Mental  Health   Trust  (AMHT)   audit;  Karen                                                               
Buchkoski,  Auditor  for  the Legislative  Audit  Division;  Kris                                                               
Curtis,  Legislative  Auditor;  Mindy Kissner,  Audit  Operations                                                               
Manager; any legislators  that are not on  the Legislative Budget                                                               
and  Audit  Committee;  and any  legislative  staff  working  for                                                               
committee  members.   There being  no objection,  the Legislative                                                               
Budget  and Audit  Committee entered  into  executive session  at                                                               
9:07 a.m.                                                                                                                       
                                                                                                                                
9:07:47 AM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 9:07 a.m. to 9:16 a.m.                                                                       
                                                                                                                                
9:15:54 AM                                                                                                                    
                                                                                                                                
CHAIR STEDMAN  brought the committee  back to order.   Present at                                                               
the call  back to order were  Representatives Seaton, Spohnholtz,                                                               
Johnston (via teleconference), and  Josephson and Senators Bishop                                                               
(via teleconference), Giessel  (via teleconference), Hoffman, von                                                               
Imhof (alternate/via teleconference), and Stedman.                                                                              
                                                                                                                                
^OTHER COMMITTEE BUSINESS                                                                                                       
                    OTHER COMMITTEE BUSINESS                                                                                
                                                                                                                              
9:16:50 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON  moved and asked unanimous  consent that                                                               
the  Legislative   Budget  and  Audit  Committee   authorize  the                                                               
legislative  auditor  to  solicit  and award  a  contract  up  to                                                               
$75,000 for  evaluation of Alaska  Mental Health  Trust Authority                                                               
investment  policies  and   specific  real  estate  transactions.                                                               
There being no objection, it was so ordered.                                                                                    
                                                                                                                                
9:17:23 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON  moved and asked unanimous  consent that                                                               
the  Legislative   Budget  and  Audit  Committee   authorize  the                                                               
legislative  auditor to  increase a  contract for  legal services                                                               
for up to $45,000 for legal  services related to the audit of the                                                               
Alaska Mental Health Trust Authority.                                                                                           
                                                                                                                                
REPRESENTATIVE JOSEPHSON related that his  sister is a partner in                                                               
Jermain, Dunnagan  & Owens,  P.C.   He offered  his understanding                                                               
that she  works on union  trusts, but he said  he is not  sure if                                                               
she works on asset management.   He said his sister could benefit                                                               
indirectly;  therefore,   he  would  like  to   be  recused  from                                                               
approving the audit.                                                                                                            
                                                                                                                                
[No  objections   were  voiced  in  response   to  Representative                                                               
Josephson's request to be recused.]                                                                                             
                                                                                                                                
9:18:15 AM                                                                                                                    
                                                                                                                                
SENATOR  HOFFMAN  stated for  the  record  that the  increase  in                                                               
question was in the amount of $10,000, from $35,000 to $45,000.                                                                 
                                                                                                                                
CHAIR STEDMAN added that it is an incremental increase.                                                                         
                                                                                                                                
9:18:29 AM                                                                                                                    
                                                                                                                                
CHAIR  STEDMAN recognized  Representative Josephson's  disclosure                                                               
and, after  ascertaining that there  was no  objection, announced                                                               
that the authorization for the  legislative auditor to increase a                                                               
contract for legal services for  up to $45,000 for legal services                                                               
related to the audit of  the Alaska Mental Health Trust Authority                                                               
was approved.                                                                                                                   
                                                                                                                                
9:19:27 AM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There  being  no  further  business  before  the  committee,  the                                                               
Legislative Budget  and Audit Committee meeting  was adjourned at                                                               
9:19 a.m.                                                                                                                       

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