Legislature(2001 - 2002)
02/05/2001 03:20 PM House L&C
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SB 10 - EXTENDED BOARD OF PUBLIC ACCOUNTANCY CHAIR MURKOWSKI announced that the first order of business would be SENATE BILL NO. 10, "An Act extending the termination date of the Board of Public Accountancy." Number 0096 HEATHER BRAKES, Staff to Senator Gene Therriault, Alaska State Legislature, testified on behalf of Senator Therriault, sponsor of SB 10. Ms. Brakes informed the committee that the Board of Public Accountancy consists of seven members appointed by the governor. She said, "Each member shall be a resident of this state for at least one year. There are five members that ... shall be certified public accountants, or public accountants and two members shall be ... members of the public." MS. BRAKES informed the committee that the bill packet includes SB 10 as well as a zero fiscal note. She stated, "The bill simply extends the Board of Public Accountancy to ... June 30, 2005. If the legislature does not take action, the board will terminate on June 30, 2001, and will have one year to administratively conclude its affairs." The bill packet should also include a copy of the audit from the Division of Legislative Audit ["Legislative Audit"] that was released on December 6, 2000. She said that the division found "the board to be safeguarding the public interest by ensuring the competence and integrity of those who hold themselves out ... to the public as certified public accountants or public accountants." The division also recommended that the board be extended to June 30, 2005. MS. BRAKES pointed out that there were three recommendations made by Legislative Audit. The first two recommendations speak to the regulations of the board. The third recommends that the governor make more timely appointments to vacant seats on the board. The audit includes the board's response to those recommendations. Number 0314 CATHERINE REARDON, Director, Division of Occupational Licensing, Department of Community & Economic Development (DCED), concurred with Ms. Brakes' testimony. Ms. Reardon testified in support of the continuation of the Board of Public Accountancy by the division and the department. She offered to answer questions. CHAIR MURKOWSKI asked if the board is responsible for submitting names to the governor when there is a vacancy on the board, and how that appointment process is handled. MS. REARDON answered that it is not a responsibility of the board. She pointed out that people can, at any time, submit applications to the governor's office to serve on any of the licensing boards. She said when there is a vacancy, and there aren't sufficient applications on file at the governor's office, then the governor's staff solicits applications. MS. REARDON informed the committee that people interested in these positions merely need to send a letter saying who they are and what qualifies them for the board, along with a contact name and number. Generally, the governor's office wants more applicants for these boards and wants to keep the process [simple] for public members, in particular. It can be difficult to find public members that are willing and able to serve. Number 0484 CHAIR MURKOWSKI said in the division's response to Recommendation 3 [from Legislative Audit], the board would attempt to facilitate in any way possible, assisting the governor's office in finding board members. She asked about the nomination process and whether applications should be submitted to the governor's office. Number 0561 MS. REARDON clarified that she had received an e-mail from the chair of the board suggesting how to respond. She said she assumed the board chair might contact the [particular] society and encourage people to submit their names. Number 0646 MS. REARDON said the difficulty in filling board seats is not just a problem with the Board of Public Accountancy, but comes up as a problem with different boards at various times. She said one vacancy doesn't usually cause a problem but it is nice to have everyone, designated to have a seat, at the table. She said in a board where there are four licensees, and one public member, it isn't such an issue, but [on the boards] that the legislature has decided to describe three or four different kinds of people that should be on the board, then [vacancies] are felt. She said at some point, it becomes a quorum problem, because the quorum is the majority of the seats. She said meeting dates could be difficult [to schedule] if there are too many vacancies on the board. MS. REARDON said the governor's office takes the issue of filling vacant seats seriously. She said there are roughly 125 board seats, just in her division, that are expiring at different times during the year. She said there are either 400 or 700 appointed spots on boards or commissions governmentwide. She acknowledged that it is a big challenge and sometimes "they" get behind. However, she feels the boards can fulfill their statutory responsibilities and are complying with the statutes when they meet. Number 0796 MS. REARDON noted that a person serving in a board position continues to serve until he or she is replaced. She said there are not vacancies unless a person has chosen to resign. CHAIR MURKOWSKI said she is satisfied that the concerns raised about the regulation [from the audit] are being addressed. MS. REARDON explained that there is a difference of opinion between Legislative Audit and the board as to whether the regulation requiring specific continuing education for supervising accountants is appropriate. She said the board has addressed the second issue [from the audit] and added a question to their application to ensure that supervisors are licensed. However, she anticipates this difference in opinion to remain. She said she doesn't expect the board to reverse its opinion in regulation - as they feel strongly about it. Number 0906 REPRESENTATIVE HALCRO made a motion to move SB 10 from committee with individual recommendations and the attached zero fiscal note. There being no objection, SB 10 was moved from the House Labor and Commerce Standing Committee.
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