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.