Legislative Budget and Audit                                                   
March 9, 1998                                                                  
12:00 Noon                                                                     
House Finance Committee Room                                                   
State Capitol                                                                  
Juneau, Alaska                                                                 
                                                                               
                                                                               
Tape: LBA-980903 Tape 1 Side 1                                                 
                                                                               
                                                                               
CALL TO ORDER                                                                  
                                                                               
Chairman Phillips convened the meeting of the Legislative Budget               
and Audit Committee on March 9, 1998, at approximately 12:35 p.m.              
in House Finance, Room 517, of the State Capitol, Juneau, Alaska.              
                                                                               
PRESENT                                                                        
                                                                               
The following members were present:                                            
                                                                               
 Senators     Representatives                                                  
                                                                               
 Chairman Phillips    Representative Martin                                    
 Senator Adams    Representative Bunde                                         
 Senator Halford    Representative Croft                                       
 Senator Pearce     Representative Therriault                                  
                                                                               
ALSO PRESENT                                                                   
                                                                               
Pat Davidson, Acting Chief Legislative Auditor; Mike Greany,                   
Legislative Fiscal Analyst.                                                    
                                                                               
APPOINTMENT OF LEGISLATIVE AUDITOR                                             
                                                                               
Senator Pearce MOVED to go into Executive Session as we will be                
discussing personal items.                                                     
                                                                               
Chairman Phillips - Hearing no objection, the motion was                       
APPROVED.                                                                      
                                                                               
EXECUTIVE SESSION                                                              
                                                                               
Chairman Phillips re-convened the meeting to the public.                       
                                                                               
Senator Pearce MOVED the motion on the floor prior to going into               
Executive Session to name Pat Davidson as Chief Legislative                    
Auditor and asked unanimous consent.                                           
                                                                               
Chairman Phillips - Hearing no objection, the motion was                       
APPROVED.                                                                      
                                                                               
CONSIDERATION OF AUDIT REQUEST                                                 
                                                                               
Chairman Phillips brought before the Committee the audit request               
of Senator Taylor relative to the activities of the Division of                
Banking and Securities and the Attorney General's office in                    
connection with World Plus, Inc.                                               
                                                                               
Pat Davidson - The audit request before you was also before you                
in December and at that time, I believe, the Committee failed to               
approve it.  It is back before us.  It did have some issues with               
regard to some lawsuits and at the Committee's pleasure, if the                
members want a full discussion about it, I would suggest going                 
back again into Executive Session.                                             
                                                                               
Representative Martin MOVED to go back into Executive Session for              
purposes of the special audit based on the financial impact to                 
the State.                                                                     
                                                                               
Chairman Phillips - Hearing no objection, the motion was                       
APPROVED.                                                                      
                                                                               
EXECUTIVE SESSION                                                              
                                                                               
Chairman Phillips re-convened the meeting to the public.                       
                                                                               
Senator Halford MOVED to approve the audit as it was requested                 
with the added request that we have a 30-day written confidential              
progress report                                                                
                                                                               
Chairman Phillips - Hearing no objection, the motion was                       
APPROVED.                                                                      
                                                                               
ADJOURNMENT                                                                    
                                                                               
Chairman Phillips adjourned the meeting at 1:07 p.m.                           
                                                                               
(End, Tape:  LB&A-980903,Tape 1 Side 1 #153)                                   
                                                                               
LB&A 2 03/09/98