Legislature(2015 - 2016)Anch LIO Conf Rm
08/18/2016 11:00 AM House LEGISLATIVE BUDGET & AUDIT
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| Audio | Topic |
|---|---|
| Start | |
| Approval of Minutes | |
| Executive Session | |
| Preliminary Performance Reviews | |
| Preliminary Audit Reports | |
| Final Audit Reports | |
| Other Committee Business | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
LEGISLATIVE BUDGET AND AUDIT COMMITTEE
August 18, 2016
11:05 a.m.
MEMBERS PRESENT
Representative Mike Hawker, Chair
Representative Lance Pruitt (via teleconference)
Representative Steve Thompson (via teleconference)
Representative Sam Kito
Senator Anna MacKinnon, Vice Chair
Senator Lyman Hoffman
Senator Click Bishop
MEMBERS ABSENT
Representative Kurt Olson
Representative Mark Neuman (alternate)
Senator Cathy Giessel
Senator Bert Stedman
Senator Pete Kelly (alternate)
COMMITTEE CALENDAR
APPROVAL OF MINUTES
EXECUTIVE SESSION
PRELIMINARY PERFORMANCE REVIEWS
PRELIMINARY AUDIT REPORTS
FINAL AUDIT REPORTS
OTHER COMMITTEE BUSINESS
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
No witnesses to record
ACTION NARRATIVE
11:05:03 AM
CHAIR MIKE HAWKER called the Legislative Budget and Audit
Committee meeting to order at 11:05 a.m. Representatives Kito,
Thompson (via teleconference), and Hawker, and Senators Bishop,
Hoffman, and MacKinnon were present at the call to order.
Representative Pruitt arrived as the meeting was in progress.
^Approval of Minutes
Approval of Minutes
11:06:43 AM
CHAIR HAWKER announced that the first order of business would be
approval of the minutes.
11:06:56 AM
SENATOR MACKINNON moved that the minutes from the Legislative
Budget and Audit Committee meetings on April 14, 2016, and May
26, 2016, be approved as presented. There being no objection,
the minutes from April 14, 2016, and May 26, 2016, were
approved.
^Executive Session
Executive Session
11:07:51 AM
CHAIR HAWKER announced that the next order of business would be
to move into executive session.
11:09:54 AM
SENATOR MACKINNON moved and asked unanimous consent that the
Legislative Budget and Audit Committee enter executive session
under Uniform Rule 22(b)(3) and AS 24.20.301 for the discussion
of confidential audit and performance review reports. There
being no objection, the committee entered into executive session
at 11:11 a.m.
11:11:11 AM
The committee took an at-ease from 11:11 a.m. to 4:14 p.m. for
the purpose of the executive session.
4:13:40 PM
CHAIR HAWKER called the Legislative Budget and Audit Committee
back to order at 4:14 p.m. Present at the call back to order
were Representatives Kito, Thompson (via teleconference), and
Hawker, and Senators Giessel, Hoffman, and MacKinnon.
4:14:28 PM
The committee took an at-ease from 4:14 p.m. to 4:16 p.m.
[Because of technical difficulties the call for an at-ease was
barely audible, thus the recorder was not turned off and
inquiries made by those participating via teleconference as to
the status of the meeting can be heard.]
4:15:43 PM
CHAIR HAWKER brought the Legislative Budget and Audit Committee
back to order. [Further technical difficulties ensued, and
Chair Hawker reiterated for the record the names of those making
up the quorum at the call back to order.]
^Preliminary Performance Reviews
Preliminary Performance Reviews
4:17:22 PM
SENATOR MACKINNON moved that the committee release the
Department of Education & Early Development preliminary
performance review to the agency for response. There being no
objection, it was so ordered.
^Preliminary Audit Reports
Preliminary Audit Reports
4:17:48 PM
SENATOR MACKINNON moved that the following preliminary audits be
released to agencies for response: the Department of Commerce,
Community & Economic Development Board of Certified Direct Entry
Midwives sunset; the Department of Commerce, Community &
Economic Development Board of Registration for Architects,
Engineers, and Land Surveyors sunset; the Department of
Commerce, Community & Economic Development Board of Veterinarian
Examiners sunset; the Department of Commerce, Community &
Economic Development Regulatory Commission of Alaska FY 15
annual report; the Department of Administration State Travel
Office; and the University of Alaska University Travel.
4:18:43 PM
REPRESENTATIVE KITO objected to relay that he is a registrant of
the Board of Architects, Engineers, and Land Surveyors, thus
there could be a perceived conflict of interest.
CHAIR HAWKER indicated that Representative Kito would be
required to vote.
REPRESENTATIVE KITO withdrew his objection. There being no
further objection, all the above-named preliminary audits were
ordered to be released.
^Final Audit Reports
Final Audit Reports
4:19:20 PM
SENATOR MACKINNON moved that the following final audit be
released to the public: FY 14 statewide single audit reissued.
There being no objection, it was so ordered.
^Other Committee Business
Other Committee Business
4:19:39 PM
CHAIR HAWKER stated for the record that the Legislative Budget
and Audit Committee had received a letter, dated July 19, 2016,
from the Oil & Gas Competitiveness Review Board, which requests
an extension for a statutorily required report to the
legislature. The reasons stated are that due to the recent
passage of HB 247, which changes the Cook Inlet tax regime, the
board felt it required additional time to supply the legislature
with a meaningful analysis of the basin's activities and
competitiveness. Chair Hawker informed the committee that he
responded with a letter, which he would supply to all committee
members and leadership, wherein he related that while he, as an
individual legislator, understands the board's concern and
agrees with its assessment of the challenges in meeting the
deadline, the Legislative Budget and Audit Committee has no
statutory authority to waive or extend a statutory deadline or
due date. Further, he said he relayed to the board that the
report itself does not involve the Legislative Budget and Audit
Committee; it is neither within the committee's purview nor its
scope of responsibility. He said he informed the board that the
request should be submitted directly to leadership offices.
4:21:47 PM
CHAIR HAWKER next related that his staff had been working
closely with Senator Giessel's staff in preparing the
legislature for upcoming joint meetings of the House Resources
Standing Committee and the Senate Resources Standing Committee
that may involve the review and consideration of proposals made
by the administration to make significant changes to the process
going forward for the development of a gas line. He indicated
there are changes being proposed that vary considerably from
that which has been discussed and evaluated by the legislature.
He said he and Senator Giessel have been looking for "some
fairly short-notice legal review related to tax matters and tax
issues, with regard to the proposals that are being made."
CHAIR HAWKER said two firms were considered. One is Manley &
Brautigam, P.C., in Anchorage, which has previously worked with
the legislature doing evaluations of the tax status of the
Alaska Gasline Development Corporation (AGDC) a couple years
ago. He indicated that for specific issues about bonding and
debt that might be issued related to a project, [Manley &
Brautigam, P.C.] "did not feel the core competency," thus the
firm recommended Jermain, Dunnagan & Owens, P.C., in Anchorage,
which has "extraordinarily well-respected bond counselors in the
state of Alaska."
CHAIR HAWKER stated his intent is to issue the statutorily
allowable $35,000 signature contract to both law firms to
provide counsel for the upcoming joint meetings of the House
Resources Standing Committee and the Senate Resources Standing
Committee. He opined that although the timing is tight, the law
firms are qualified and will be able to provide the legislature
with good preliminary support.
4:24:11 PM
CHAIR HAWKER said Manley & Brautigam, P.C., has made the full
disclosure that it has done and continues to do work on property
taxes for various players in the oil and gas industry. He
indicated that the firm has requested that an acknowledgement
notice - "a potential waiver of any conflict that might come up
with their work regarding property taxes with those entities" -
be signed by those entities and by the legislature. Chair
Hawker stated his intent is to sign the waiver, because "the
work we are requesting done here, which has to do with the
structure, organization, [and] taxability of the gas pipeline
project absolutely, in no way, conflicts with the property tax
work being done by this firm for the various companies." He
said if a further conflict arises, everyone involved will be
notified. He said legal procurements are exempted from the
long-term procurement process required, and he reiterated that
it is an expedited need of the legislature to meet the
requirements of the aforementioned joint committees.
4:26:04 PM
ADJOURNMENT
There being no further business before the committee, the
Legislative Budget and Audit Committee meeting was adjourned at
4:26 p.m.
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