05/14/2019 09:00 AM House FINANCE

CS FOR SENATE BILL NO. 43(FIN)                                                                                                
                                                                                                                                
     "An Act extending the termination  date of the Big Game                                                                    
     Commercial  Services  Board;  relating  to  a  person's                                                                    
     eligibility  to   hold  a   registered  guide-outfitter                                                                    
     license,  master  guide-   outfitter  license,  class-A                                                                    
     assistant  guide license,  assistant guide  license, or                                                                    
     transporter  license; and  providing  for an  effective                                                                    
     date."                                                                                                                     
                                                                                                                                
9:33:48 AM                                                                                                                    
                                                                                                                                
Co-Chair  Wilson relayed  that she  would hold  the bill  in                                                                    
committee. She  expected that an amendment  was forthcoming.                                                                    
She  indicated  that  some   concerns  regarding  the  board                                                                    
lingered.  She   asked  to   hear  from   Legislative  Audit                                                                    
regarding  the recommended  5 year  period of  extension and                                                                    
consequences of a shorter extension period.                                                                                     
                                                                                                                                
KRIS  CURTIS,   LEGISLATIVE  AUDITOR,  ALASKA   DIVISION  OF                                                                    
LEGISLATIVE AUDIT, shared that more  than 800 hours had gone                                                                    
into the  audit and it  had cost approximately  $70,000. She                                                                    
shared  that  the division  had  just  recently audited  the                                                                    
board; three years prior in 2015  and again in 2018. She had                                                                    
recommended a  two year  extension in  the past  for another                                                                    
board due  to serious  public safety concerns.  Typically, a                                                                    
three year  extension meant they  had serious  concerns. She                                                                    
indicated that they could begin  another audit in the coming                                                                    
year. However, she did not  believe they would find anything                                                                    
to draw  a different conclusion.  The term of  extension was                                                                    
exclusively  a   legislative  decision.   Legislative  Audit                                                                    
Division would place the audit first  in a queue and make it                                                                    
a priority if the legislature made it a priority.                                                                               
                                                                                                                                
Co-Chair Wilson  wondered why the division  only recommended                                                                    
a  5    year audit  versus and  8    year audit.  Ms. Curtis                                                                    
answered  that  the  division  had  recommended  a  six-year                                                                    
extension.  The Senate  Finance  Committee  had changed  the                                                                    
period to five years  over concerns about the investigation.                                                                    
She  clarified that  the  audit did  not  conclude that  the                                                                    
board  did a  poor job  with investigations.  The audit  did                                                                    
conclude  that there  had been  no documentation  to support                                                                    
periods  of inactivity.  The division  was  not required  to                                                                    
report on  the quality of the  investigatory decisions, only                                                                    
the efficiency  with which decisions  were made.  The eleven                                                                    
sunset audit criteria that were  listed in the back of every                                                                    
audit  report were  used unless  directed  otherwise by  the                                                                    
Legislative Budget and Audit Committee (LBA).                                                                                   
                                                                                                                                
9:38:06 AM                                                                                                                    
                                                                                                                                
Representative Josephson  asked about the statement  that an                                                                    
audit would be prioritized  if requested by the legislature.                                                                    
He  asked  for  details.   Ms.  Curtis  clarified  that  the                                                                    
division always  prioritized items that carried  a statutory                                                                    
requirement.  She  delineated   that  any  legislator  could                                                                    
request  a performance  audit through  LBA and  if approved,                                                                    
the  audit  was placed  first  in  the  que of  audits.  The                                                                    
division  would  address  the audit  as  resources  allowed.                                                                    
Sunset  audits  were  statutorily required  and  were  given                                                                    
priority.                                                                                                                       
                                                                                                                                
Representative  Knopp  asked that  for  every  board with  a                                                                    
sunset requirement  the division was mandated  to perform an                                                                    
audit regardless of the extension.  Ms. Curtis answered that                                                                    
not all  boards had  an audit  requirement. She  pointed out                                                                    
that  not all  entities  with  a sunset  date  had an  audit                                                                    
requirement.  She elaborated  that many  occupational boards                                                                    
had the  sunset requirement. When  a sunset date was  put in                                                                    
statute the  division performed an  audit one year  prior to                                                                    
the sunset. Representative Knopp deduced  that if he did not                                                                    
want  an  audit  when  the board  sunset  the  division  was                                                                    
required to  perform one regardless. Ms.  Curtis answered in                                                                    
the affirmative.                                                                                                                
                                                                                                                                
Co-Chair  Wilson  deduced  that   a  remedy  for  a  concern                                                                    
regarding  the length  of  time  investigations were  taking                                                                    
would be better addressed via statute versus an audit.                                                                          
                                                                                                                                
9:40:17 AM                                                                                                                    
                                                                                                                                
Ms. Curtis  answered that LBA  wanted a specific focus  on a                                                                    
sunset audit  the committee could request  that the division                                                                    
add an  audit criterion.  She restated  that besides  the 11                                                                    
sunset criteria there  was the ability to  look at something                                                                    
more deliberately.                                                                                                              
                                                                                                                                
Representative  LeBon   asked  for  verification   that  the                                                                    
division  would do  an audit  one year  prior to  the sunset                                                                    
date of  2024 in the  bill. Ms. Curtis nodded  in agreement.                                                                    
Representative LeBon  asked for clarification  regarding who                                                                    
could request a performance  audit. Ms. Curtis answered that                                                                    
any  legislator  could  request an  audit  through  the  LBA                                                                    
committee.   She  reiterated   that  completing   the  audit                                                                    
depended on  the divisions   available resources.  She noted                                                                    
that the  division was completing  an audit at  present that                                                                    
began in  2015. A  special performance audit  typically took                                                                    
one year before the audit process began.                                                                                        
                                                                                                                                
Representative   Knopp  surmised   that   when  there   were                                                                    
additional  concerns  with the  board  not  included in  the                                                                    
audit it  would require a  special audit request  that might                                                                    
take three to four more years to address.                                                                                       
                                                                                                                                
Co-Chair  Wilson interjected  that  if  there were  specific                                                                    
concerns about  the board  sunset it  should be  included in                                                                    
the  current extension  bill. She  asked how  the additional                                                                    
concerns should  be included  in the audit  via a  letter or                                                                    
amending the bill. She wondered what the process was.                                                                           
                                                                                                                                
Representative Knopp questioned whether  a request had to be                                                                    
made in  a special audit or  if they could be  addressed via                                                                    
the  sunset   bill.  Ms.  Curtis  answered   that  the  most                                                                    
efficient way was to include  the concerns in a sunset audit                                                                    
bill. She  cautioned the committee  that she  usually worked                                                                    
with someone making audit requests  - audits needed specific                                                                    
criteria in  order to answer  the question and could  not be                                                                    
subjective.                                                                                                                     
                                                                                                                                
9:44:06 AM                                                                                                                    
                                                                                                                                
Representative  Knopp   relayed  that  he  had   heard  many                                                                    
concerns  about the  board, and  he planned  to recommend  a                                                                    
shorter extension period of two years.                                                                                          
                                                                                                                                
Co-Chair Wilson thought  there was time to reach  out to Ms.                                                                    
Curtis  to  ensure the  committee  provided  a framework  to                                                                    
address the concerns  in the bill. She was  uncertain that a                                                                    
two  year  extension  was  enough  time  to   get  questions                                                                    
answered.   Co-Chair  Wilson suggested  that  Representative                                                                    
Knopps    office  contact   Ms.  Curtis   for  consultation.                                                                    
Representative Knopp declined to consult with Ms. Curtis.                                                                       
                                                                                                                                
Representative  LeBon referenced  Ms. Curtis's  phrase "best                                                                    
practices." He shared that in  the banking industry the term                                                                    
was used often.  He believed that it was  a  very intangible                                                                    
concept.  He  cautioned that  best practices  were carefully                                                                    
crafted and sometimes not to the benefit of the auditee.                                                                        
                                                                                                                                
9:47:07 AM                                                                                                                    
GARY ZEPP, STAFF, SENATOR DAVID  WILSON, shared that Senator                                                                    
Wilson appreciated the work the committee had done.                                                                             
                                                                                                                                
Co-Chair Wilson  noted there was possibly  another amendment                                                                    
coming forward and  would hold the bill  until the following                                                                    
meeting.                                                                                                                        
                                                                                                                                
CSSB 16(FIN)  was HEARD  and HELD  in committee  for further                                                                    
consideration.