SB  78-LEGISLATIVE AUDIT DIVISION POWERS                                                                        
                                                                                                                                
9:34:10 AM                                                                                                                    
CHAIR MENARD announced the consideration of SB 78.                                                                              
                                                                                                                                
SENATOR FRENCH  moved to adopt  the committee substitute  (CS) to                                                               
SB 78,  labeled 26-LS0194\S,  as a  working document.  Hearing no                                                               
objection, version S was before the committee.                                                                                  
                                                                                                                                
9:35:16 AM                                                                                                                    
SENATOR  FRED DYSON,  Alaska State  Legislature, said  he is  the                                                               
prime sponsor  of SB  78. He  said Senator  French has  done some                                                               
good work, but he would like  to suggest minor changes in the CS.                                                               
He can put them all together next week or in the next committee.                                                                
                                                                                                                                
CHAIR MENARD said she would like to move the bill.                                                                              
                                                                                                                                
SENATOR MEYER asked if the auditor supports the changes.                                                                        
                                                                                                                                
PAT  DAVIDSON, Auditor,  Division of  Legislative Audit,  Juneau,                                                               
said the  last clause in the  new section 11 limits  the audit to                                                               
only the financial records of  an organization. It will constrain                                                               
legislators to only ask for  financial audits. They won't be able                                                               
to ask  for performance-oriented audits.  For example,  the state                                                               
runs  a training  program  through the  Department  of Labor  and                                                               
gives money  to various organizations. If  the legislature wanted                                                               
to know  how successful those  programs were, the  auditors would                                                               
not be able to measure that  by looking at financial records. "To                                                               
get the broadest type of  information to the legislature, you may                                                               
want  to  consider taking  that  portion  out." That  would  give                                                               
auditors access  to records that  were generated through  the use                                                               
of state  money or  federal money flowing  through the  state and                                                               
perform a wider breadth of audits.                                                                                              
                                                                                                                                
9:37:59 AM                                                                                                                    
SENATOR MEYER  said he  agrees. He asked  about "may"  instead of                                                               
"shall" on number 11.                                                                                                           
                                                                                                                                
MS. DAVIDSON  said she  is not  sure. "It's  the second  time the                                                               
word 'may'  has shown up."  She hasn't  spoken to the  drafter on                                                               
why it is there.  Is it giving the authority to her  to say no to                                                               
a committee audit request?                                                                                                      
                                                                                                                                
SENATOR   FRENCH  suggested   dropping  the   second  clause   in                                                               
subsection 11. He moved Amendment 1  as follows: Page 2, line 27,                                                               
after the  word "committee",  add a period  and strike  the rest.                                                               
Hearing no objection, Amendment 1 passed.                                                                                       
                                                                                                                                
9:39:36 AM                                                                                                                    
SENATOR  MEYER moved  to  report the  CS to  SB  78 labeled,  26-                                                               
LS0194\S,   as   amended,    from   committee   with   individual                                                               
recommendations  and  attached  fiscal note(s).  There  being  no                                                               
objection, CSSB 78(STA) moved out of committee.