Legislature(2017 - 2018)ANCH LIO Sm Conf Rm

12/14/2017 02:30 PM LEGISLATIVE BUDGET & AUDIT


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02:31:24 PM Start
02:32:08 PM Approval of Agenda
02:37:49 PM Approval of Minutes
02:38:14 PM Revised Program Legislative (rpls)
02:41:33 PM Executive Session
03:48:52 PM Preliminary and Final Audit Reports
03:51:47 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ RPL - 10-8-5024 DNR, BLM Agreement TELECONFERENCED
EXECUTIVE SESSION - Final & Preliminary Audit
Reports
Final Audit Release:
a. DCCED - Marijuana Control Board (Sunset)
b. DCCED - Board of Psychologist & Psychological
Associate Examiners (Sunset)
c. DCCED - Board of Massage Therapists (Sunset)
Preliminary Audits:
a. DCCED - Alcoholic Beverage Control Board
(Sunset)
b. DCCED - Board of Pharmacy (Sunset)
c. DCCED - AK Tourism Marketing Board (Sunset)
d. DCCED - Board of Social Work Examiners
(Sunset)
Status of FY 15 Single Audit (Reissue)
Other Committee Business
                    ALASKA STATE LEGISLATURE                                                                                  
             LEGISLATIVE BUDGET AND AUDIT COMMITTEE                                                                           
                       December 14, 2017                                                                                        
                       Anchorage, Alaska                                                                                        
                           2:31 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Bert Stedman, Chair                                                                                                     
Senator Anna MacKinnon (via teleconference)                                                                                     
Senator Cathy Giessel                                                                                                           
Senator Natasha von Imhof (alternate) (via teleconference)                                                                      
                                                                                                                                
Representative Andy Josephson, Vice Chair (via teleconference)                                                                  
Representative Scott Kawasaki (via teleconference)                                                                              
Representative Paul Seaton (via teleconference)                                                                                 
Representative Jennifer Johnston                                                                                                
Representative Dan Ortiz (alternate)(via teleconference)                                                                        
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Click Bishop                                                                                                            
Senator Lyman Hoffman                                                                                                           
                                                                                                                                
Representative Ivy Spohnholz                                                                                                    
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
APPROVAL OF AGENDA                                                                                                              
APPROVAL OF MINUTES                                                                                                             
REVISED PROGRAM LEGISLATIVE (RPLs)                                                                                              
EXECUTIVE SESSION                                                                                                               
PRELIMINARY AND FINAL AUDIT REPORT                                                                                              
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
DAVID TEAL, Legislative Fiscal Analyst                                                                                          
Legislative Finance Division                                                                                                    
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Provided information on RPL 10-8-5024 to                                                                 
the Legislative Budget and Audit Committee.                                                                                     
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
2:31:24 PM                                                                                                                    
                                                                                                                                
CHAIR  BERT  STEDMAN  called the  Legislative  Budget  and  Audit                                                             
Committee  meeting  to  order  at   2:36  p.m.    Representatives                                                               
Kawasaki  (via  teleconference),   Seaton  (via  teleconference),                                                               
Johnston,  Ortiz (alternate,  via teleconference),  and Josephson                                                               
(via    teleconference)     and    Senators     MacKinnon    (via                                                               
teleconference),    Giessel,    von   Imhof    (alternate,    via                                                               
teleconference), and Stedman were present at the call to order.                                                                 
                                                                                                                                
2:32:08 PM                                                                                                                    
                                                                                                                                
The committee  took an  at-ease from  2:32 p.m.  to 2:37  p.m. to                                                               
address technical difficulties.                                                                                                 
                                                                                                                                
^APPROVAL OF AGENDA                                                                                                             
                       APPROVAL OF AGENDA                                                                                   
                                                                                                                                
2:37:36 PM                                                                                                                    
                                                                                                                                
CHAIR STEDMAN  announced that the  first order of  business would                                                               
be approval of the agenda.                                                                                                      
                                                                                                                                
2:37:39 PM                                                                                                                    
                                                                                                                                
SENATOR  GEISSEL  moved that  the  Legislative  Budget and  Audit                                                               
Committee  approve the  agenda.   There being  no objection,  the                                                               
agenda was approved.                                                                                                            
                                                                                                                                
^APPROVAL OF MINUTES                                                                                                            
                      APPROVAL OF MINUTES                                                                                   
                                                                                                                                
2:37:49 PM                                                                                                                    
                                                                                                                                
CHAIR STEDMAN announced  the next order of business  would be the                                                               
approval of minutes.                                                                                                            
                                                                                                                                
2:37:57 PM                                                                                                                    
                                                                                                                                
SENATOR  GIESSEL  moved that  the  Legislative  Budget and  Audit                                                               
Committee approve  the minutes of  the November 9,  2017 meeting.                                                               
There being no objection, the minutes were approved.                                                                            
                                                                                                                                
^REVISED PROGRAM LEGISLATIVE (RPLs)                                                                                             
               REVISED PROGRAM LEGISLATIVE (RPLs)                                                                           
                                                                                                                                
2:38:14 PM                                                                                                                    
                                                                                                                                
CHAIR STEDMAN announced that the  next order of business would be                                                               
a revised program legislative (RPL).                                                                                            
                                                                                                                                
2:38:27 PM                                                                                                                    
                                                                                                                                
DAVID  TEAL,  Legislative  Fiscal  Analyst,  Legislative  Finance                                                               
Division, Alaska  State Legislature, explained that  in RPL 10-8-                                                               
5024,  the Department  of Natural  Resources (DNR)  asks for  the                                                               
authority  to receive  and spend  $297,000  in federal  receipts.                                                               
Mr. Teal  said the  RPL states  that the money  would be  used to                                                               
continue  an  agreement between  the  Bureau  of Land  Management                                                               
(BLM)  and DNR.   Under  the agreement,  personnel costs  for the                                                               
executive director  of the North  Slope Science  Center's Science                                                               
Initiative is paid by BLM.  Mr.  Teal said the request is for the                                                               
full amount  of the  one-year agreement.   He advised  that since                                                               
the fiscal year 2018 (FY  18) budget already contains funding for                                                               
six months  of the agreement,  the amount is about  $150,000 more                                                               
than is  needed to fund  the agreement  for the remainder  of the                                                               
year.                                                                                                                           
                                                                                                                                
MR. TEAL said  his staff discussed the situation  with the agency                                                               
staff of DNR, who informed  the Legislative Finance Division that                                                               
DNR was  awarded two unanticipated grants  totaling approximately                                                               
$100,000.   He said the bottom  line is that RPL  10-8-5024 would                                                               
leave   DNR  with   approximately  $50,000   in  excess   federal                                                               
authorization  in FY  18.    Mr. Teal  stated,  "We  don't see  a                                                               
particular  problem  with  that;  the  excess  authorization  can                                                               
eliminate  the need  for a  second RPL  if additional  grants are                                                               
received -  or a supplemental  ... if  we go into  session before                                                               
that - and the federal authority  - the extra $50,000 - cannot be                                                               
used unless  additional federal receipts  become available."   He                                                               
said  the  situation is  not  troubling,  but  perhaps is  a  bit                                                               
confusing in the way it was presented by the department.                                                                        
                                                                                                                                
2:40:42 PM                                                                                                                    
                                                                                                                                
SENATOR  GIESSEL  moved that  the  Legislative  Budget and  Audit                                                               
Committee   approve   RPL   10-8-5024,  Department   of   Natural                                                               
Resources, in  the amount of  $297,000 in federal  receipts, Fund                                                               
Code 1002, as a supplemental FY  18 operating budget item.  There                                                               
being no objection, RPL 10-8-5024 was approved.                                                                                 
                                                                                                                                
^EXECUTIVE SESSION                                                                                                              
                       EXECUTIVE SESSION                                                                                    
                                                                                                                                
CHAIR STEDMAN announced that the  next order of business would be                                                               
an executive session.                                                                                                           
                                                                                                                                
2:41:33 PM                                                                                                                    
                                                                                                                                
SENATOR  GIESSEL  moved that  the  Legislative  Budget and  Audit                                                               
Committee go  into executive  session under  Uniform Rule  22 for                                                               
the  purpose of  discussing confidential  audit reports  under AS                                                               
24.20.301.   She asked that  the following individuals  remain in                                                               
the  room or  on  line:   Kris Curtis,  necessary  staff for  the                                                               
Legislative Audit Division,  any legislators that are  not on the                                                               
Legislative  Budget  and  Audit Committee,  and  any  legislative                                                               
staff working for  committee members.  There  being no objection,                                                               
it was so ordered.                                                                                                              
                                                                                                                                
2:42:21 PM                                                                                                                    
                                                                                                                                
The committee  took an at-ease  from 2:42  p.m. to 3:47  p.m. for                                                               
the purpose of an executive session.                                                                                            
                                                                                                                                
3:47:38 PM                                                                                                                    
                                                                                                                                
CHAIR STEDMAN  called the Legislative Budget  and Audit Committee                                                               
back to  order.   Representatives Kawasaki  (via teleconference),                                                               
Seaton  (via  teleconference),  Johnston, Ortiz  (alternate,  via                                                               
teleconference), and Josephson  (via teleconference) and Senators                                                               
Mackinnon  (via  teleconference),   Giessel,  Senator  von  Imhof                                                               
(alternate, via teleconference), and Stedman  were present at the                                                               
call back to order.                                                                                                             
                                                                                                                                
CHAIR STEDMAN  requested that  the committee's  alternate members                                                               
standby to vote in case any members had to leave.                                                                               
                                                                                                                                
^PRELIMINARY AND FINAL AUDIT REPORTS                                                                                            
              PRELIMINARY AND FINAL AUDIT REPORTS                                                                           
                                                                                                                                
3:48:52 PM                                                                                                                    
                                                                                                                                
CHAIR STEDMAN  announced that the  final order of  business would                                                               
be the preliminary and final audit reports.                                                                                     
                                                                                                                                
3:49:25 PM                                                                                                                    
                                                                                                                                
SENATOR  GIESSEL  moved that  the  Legislative  Budget and  Audit                                                               
Committee  release  the  following   preliminary  audits  to  the                                                               
appropriate agencies  for response:  the  Department of Commerce,                                                               
Community  &  Economic   Development  (DCCED),  Alcohol  Beverage                                                               
Control Board;  DCCED, Board of  Pharmacy; DCCED,  Alaska Tourism                                                               
Marketing  Board;  and DCCED,  Board  of  Social Work  Examiners.                                                               
There being no objection, the preliminary audits were released.                                                                 
                                                                                                                                
3:50:33 PM                                                                                                                    
                                                                                                                                
SENATOR  GIESSEL  moved that  the  Legislative  Budget and  Audit                                                               
Committee release  the following final audits:   DCCED, Marijuana                                                               
Control  Board; DCCED,  Board of  Psychologist and  Psychological                                                               
Examiners; DCCED,  Board of Massage  Therapists.  There  being no                                                               
objection, the final audits were released.                                                                                      
                                                                                                                                
3:51:47 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There  being  no  further  business  before  the  committee,  the                                                               
Legislative Budget  and Audit Committee meeting  was adjourned at                                                               
3:52 p.m.                                                                                                                       

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