00CS FOR SENATE BILL NO. 128(STA)                                                                                         
01 "An Act relating to legislative audits."                                                                                
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
03    * Section 1.  AS 24.20.311 is amended to read:                                                                       
04  Sec. 24.20.311.  REPORTS.  The Legislative Budget and Audit Committee                                               
05 [COMMITTEE] shall file copies of its approved audit reports including any committee                                     
06 recommendations with the governor, the agency concerned, and the legislature.  A                                       
07 committee recommendation involving an agency in the executive branch may                                                
08 identify an item for monitoring under AS 24.20.312.  An annual report summarizing                                      
09 the audit reports and committee recommendations made during the year shall be filed                                     
10 with the governor and with the legislature within the first five days of each regular                                   
11 session of the legislature.  Reports shall be approved by a majority of the committee                                   
12 before their release and shall be open to public inspection after their release to the                                  
13 legislature.                                                                                                            
14    * Sec. 2.  AS 24.20 is amended by adding a new section to read:                                                      

01  Sec. 24.20.312.  MONITORING OF AUDIT RECOMMENDATIONS.  (a)                                                            
02 The office of management and budget shall review each item identified for monitoring                                    
03 in a recommendation involving an agency in the executive branch contained in an audit                                   
04 report filed with the governor under AS 24.20.311.  The office shall monitor the                                        
05 implementation of a recommended item if the audited agency agrees with it.  If the                                      
06 agency disagrees in whole or in part with a recommended item, the office shall, within                                  
07 60 days after the audit report containing the item is filed with the governor (1) request                               
08 the governor to direct the agency to implement the item, or (2) submit a report to the                                  
09 legislative auditor proposing an alternative resolution or indicating a final position of                               
10 opposition to the item.  A copy of the report shall be supplied by the office to each                                   
11 member of the Legislative Budget and Audit Committee.                                                                   
12  (b)  By January 31, the office of management and budget shall submit a report                                         
13 to the legislative auditor and a copy of the report to each member of the committee.                                    
14 The report must explain the results during the previous calendar year of the monitoring                                 
15 of each item under (a) of this section.  The legislative auditor shall review the report                                
16 and, as to each item, recommend to the committee that the matter be closed, that                                        
17 implementation be wholly or partially waived by the committee, or that the committee                                    
18 direct the office to continue to monitor implementation.                                                                
19    * Sec. 3.  AS 44.19.145(a) is amended by adding a new paragraph to read:                                             
20   (12)  monitor audit recommendations under AS 24.20.312.