Legislature(2023 - 2024)ANCH LIO DENALI Rm

06/28/2023 01:00 PM House LEGISLATIVE BUDGET & AUDIT

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Audio Topic
01:03:40 PM Start
01:05:46 PM Approval of Minutes
01:06:22 PM Rpl 16-2024-0130
01:13:44 PM Board of Chiropractic Examiners Audit
01:15:38 PM Executive Session
02:25:47 PM Fy 22 Single Audit Release
02:27:58 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ I. RPL 16-2024-0130 TELECONFERENCED
+ II. Letter Following Up on Board of Chiropractors TELECONFERENCED
Audit
III. Executive Session
1. Audit Release
a. FY22 Single Audit
2. Procurement of OCS Audit
Teleconferencing available at: 907-586-9085
Juneau, 907-563-9085 Anchorage, 844-586-9085
Outside Juneau and Anchorage
                    ALASKA STATE LEGISLATURE                                                                                  
             LEGISLATIVE BUDGET AND AUDIT COMMITTEE                                                                           
                       Anchorage, Alaska                                                                                        
                         June 28, 2023                                                                                          
                           1:03 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Ben Carpenter, Chair                                                                                             
Senator Bert Stedman, Vice Chair                                                                                                
Representative DeLena Johnson                                                                                                   
Representative Frank Tomaszewski                                                                                                
Senator Bill Wielechowski                                                                                                       
Senator Lyman Hoffman                                                                                                           
Senator James Kaufman                                                                                                           
Senator Scott Kawasaki                                                                                                          
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Sarah Vance                                                                                                      
Representative Andy Josephson                                                                                                   
Representative Mike Cronk (alternate)                                                                                           
Senator Click Bishop (alternate)                                                                                                
                                                                                                                                
OTHER LEGISLATORS PRESENT                                                                                                     
                                                                                                                                
Senator Jesse Kiehl                                                                                                             
Representative Dan Ortiz                                                                                                        
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
APPROVAL OF MINUTES                                                                                                             
RPL 16-2024-0130                                                                                                                
BOARD OF CHIROPRACTIC EXAMINERS AUDIT                                                                                           
EXECUTIVE SESSION                                                                                                               
FY 22 SINGLE AUDIT RELEASE                                                                                                      
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
ALEXEI PAINTER, Director                                                                                                        
Legislative Finance Division                                                                                                    
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented RPL 16-2024-0130.                                                                              
                                                                                                                                
KRIS CURTIS, Legislative Auditor                                                                                                
Legislative Audit Division                                                                                                      
Legislative Affairs Agency                                                                                                      
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   Presented a  memo following  the Board  of                                                             
Chiropractic Examiners audit.                                                                                                   
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:03:40 PM                                                                                                                    
                                                                                                                                
CHAIR  BEN  CARPENTER called  the  Legislative  Budget and  Audit                                                             
Committee meeting  to order at  1:03 p.m.   Senators Wielechowski                                                               
(via  teleconference), Hoffman,  Kaufman,  Kawasaki, and  Stedman                                                               
(via   teleconference)  and   Representatives  D.   Johnson  (via                                                               
teleconference), Tomaszewski (via  teleconference), and Carpenter                                                               
were  present  at  the  call   to  order.    Senator  Kiehl  (via                                                               
teleconference) and Representative Ortiz were also present.                                                                     
                                                                                                                                
^Approval of Minutes                                                                                                            
                      Approval of Minutes                                                                                   
                                                                                                                              
1:05:46 PM                                                                                                                    
                                                                                                                                
CHAIR CARPENTER announced that the  first order of business would                                                               
be the approval of minutes.                                                                                                     
                                                                                                                                
1:05:55 PM                                                                                                                    
                                                                                                                                
SENATOR  KAUFMAN  moved that  the  Legislative  Budget and  Audit                                                               
Committee approve the  minutes for the May 18,  2023, meetings as                                                               
presented.  There being no objection, the minutes were approved.                                                                
                                                                                                                                
^RPL 16-2024-0130                                                                                                               
                        RPL 16-2024-0130                                                                                    
                                                                                                                              
1:06:22 PM                                                                                                                    
                                                                                                                                
CHAIR CARPENTER announced  that the next order  of business would                                                               
be the presentation of RPL 16-2024-0130.                                                                                        
                                                                                                                                
1:06:38 PM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
1:07:20 PM                                                                                                                    
                                                                                                                                
ALEXEI   PAINTER,   Director,   Legislative   Finance   Division,                                                               
presented RPL  16-2024-0130 from the Department  of Health (DOH).                                                               
He  stated  that the  RPL  amounted  to $460,000  of  statutorily                                                               
designated  program   receipts  (SDPR)  in  2024   expanding  the                                                               
authority granted in  HB 39.  He explained that  Alaska was party                                                               
to  a  $26  billion  settlement with  a  manufacturer  and  three                                                               
distributors  of  opioids.    Alaska was  set  to  receive  $58.5                                                               
million over the next 18  years, he said, having already received                                                               
$9 million  of that amount.   The settlement allowed funds  to be                                                               
used by states  and local governments on abatement  of the opioid                                                               
epidemic.   In Alaska, the  governor signed  Administrative Order                                                               
No. 324 (AO324), establishing the  Governor's Advisory Council on                                                               
Opioid  Remediation (GACOR)  tasked with  determining the  use of                                                               
                                                                rd                                                              
the  settlement  funds.     Legislation  submitted  in  the   33                                                                
legislative  session based  on GACOR's  recommendations -  SB 133                                                               
and HB  171 - proposed placing  the funds into a  special account                                                               
with  a  5  percent  of market  value  (POMV)  draw,  essentially                                                               
turning the $58.5  million into a perpetual fund  used for opioid                                                               
remediation  indefinitely.    He  indicated that  the  amount  of                                                               
$460,000 in  RPL 16-2024-0130  matched the  first year  POMV draw                                                               
proposed  under  SB  133.   He  noted  that  Legislative  Finance                                                               
Division  (LFD) foresaw  no technical,  legal,  or fiscal  issues                                                               
with  the RPL.   He  flagged  several policy  questions, such  as                                                               
determining whether  the use  of the  settlement funds  issue was                                                               
appropriate  for the  RPL  process  or whether  it  was a  larger                                                               
policy discussion  to be had by  the full legislature.   He noted                                                               
that  there  was  some  flexibility with  the  funds  within  the                                                               
broader framework of abating the opioid epidemic.                                                                               
                                                                                                                                
1:12:39 PM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
1:12:54 PM                                                                                                                    
                                                                                                                                
SENATOR  KAUFMAN  moved that  the  Legislative  Budget and  Audit                                                               
Committee approve the RPL 16-2024-0130 as presented.                                                                            
                                                                                                                                
CHAIR CARPENTER  objected for the  purpose of  discussion; seeing                                                               
none,  he removed  his  objection  to the  adoption  of the  RPL.                                                               
There being no further objection, RPL 16-2024-0130 was approved.                                                                
                                                                                                                                
^Board of Chiropractic Examiners Audit                                                                                          
             Board of Chiropractic Examiners Audit                                                                          
                                                                                                                              
1:13:44 PM                                                                                                                    
                                                                                                                                
CHAIR CARPENTER announced  that the next order  of business would                                                               
be  the   presentation  of   a  memo   following  the   Board  of                                                               
Chiropractic Examiners audit.                                                                                                   
                                                                                                                                
1:14:03 PM                                                                                                                    
                                                                                                                                
KRIS  CURTIS, Legislative  Auditor,  Legislative Audit  Division,                                                               
Legislative  Affairs  Agency  (LAA),   explained  that  the  memo                                                               
[included in  the committee packet] followed  the recommendations                                                               
made  in the  2021  sunset  audit of  the  Board of  Chiropractic                                                               
Examiners.  She  directed attention to page 2 of  the memo, which                                                               
offered  a  summary  of  the  recommendations,  highlighting  the                                                               
"resolved" status of each.                                                                                                      
                                                                                                                                
^Executive Session                                                                                                              
                       Executive Session                                                                                    
                                                                                                                              
1:15:38 PM                                                                                                                    
                                                                                                                                
CHAIR CARPENTER announced  that the next order  of business would                                                               
be executive session.                                                                                                           
                                                                                                                                
1:16:07 PM                                                                                                                    
                                                                                                                                
SENATOR  KAUFMAN  moved that  the  Legislative  Budget and  Audit                                                               
Committee go into Executive Session  under Uniform Rule 22(b)(3),                                                               
for discussion  of matters that  may, by  law, be required  to be                                                               
confidential.  There being no objection, it was so ordered.                                                                     
                                                                                                                                
CHAIR CARPENTER  asked that  the following  people remain  in the                                                               
room  or  on  the  phone   lines:  the  legislative  auditor  and                                                               
necessary  staff;  any  legislators  not on  the  committee;  and                                                               
legislative staff to members of the committee.                                                                                  
                                                                                                                                
1:16:47 PM                                                                                                                    
                                                                                                                                
The committee  took an at-ease  from 1:16  p.m. to 2:23  p.m. for                                                               
the purpose of executive session.                                                                                               
                                                                                                                                
2:23:56 PM                                                                                                                    
                                                                                                                                
CHAIR  CARPENTER   called  the   Legislative  Budget   and  Audit                                                               
Committee meeting back  to order at 2:23 p.m.   Senators Hoffman,                                                               
Kaufman,  and  Kawasaki,  and  Representatives  D.  Johnson  (via                                                               
teleconference),    Tomaszewski    (via   teleconference),    and                                                               
Carpenter,  were present  at the  call  back to  order.   Senator                                                               
Kiehl  (via teleconference)  and Representative  Ortiz were  also                                                               
present.                                                                                                                        
                                                                                                                                
2:25:19 PM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
^FY 22 Single Audit Release                                                                                                     
                   FY 22 Single Audit Release                                                                               
                                                                                                                              
2:25:47 PM                                                                                                                    
                                                                                                                                
CHAIR CARPENTER announced that the  final order of business would                                                               
be approval of the FY 22 single audit release.                                                                                  
                                                                                                                                
CHAIR  CAPRENTER stated  that during  the executive  session, the                                                               
committee discussed the  audit release of the FY  22 single audit                                                               
and  procurement  for the  Office  of  Children's Services  (OCS)                                                               
audit.  He expressed his hope  that a contract would be ready for                                                               
review and authorization at the next committee meeting.                                                                         
                                                                                                                                
2:26:40 PM                                                                                                                    
                                                                                                                                
SENATOR  KAUFMAN  moved that  the  Legislative  Budget and  Audit                                                               
Committee  release  the FY  22  single  audit.   There  being  no                                                               
objection, the audit was released.                                                                                              
                                                                                                                                
2:27:58 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There  being  no  further  business  before  the  committee,  the                                                               
Legislative Budget  and Audit Committee meeting  was adjourned at                                                               
2:27 p.m.                                                                                                                       

Document Name Date/Time Subjects
LEGIQ 316 Memo.pdf JBUD 6/28/2023 1:00:00 PM
RPL 16-2024-0130 DOH Opiod.pdf JBUD 6/28/2023 1:00:00 PM