Legislature(2011 - 2012)BARNES 124

02/25/2011 03:15 PM House LABOR & COMMERCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 118 RESEARCH AND DEVELOPMENT TAX CREDIT TELECONFERENCED
Scheduled But Not Heard
*+ HB 147 BOARD OF PUBLIC ACCOUNTANCY SECRETARY TELECONFERENCED
Moved Out of Committee
*+ HB 155 PUBLIC CONSTRUCTION CONTRACTS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 125 ALCOHOLIC BEVERAGE CONTROL BOARD TELECONFERENCED
Moved CSHB 125(L&C) Out of Committee
          HB 147-BOARD OF PUBLIC ACCOUNTANCY SECRETARY                                                                      
                                                                                                                              
3:50:45 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON  announced that the  next order of business  would be                                                               
HOUSE BILL  NO. 147,  "An Act  setting a  monthly salary  for the                                                               
executive secretary of the Board of Public Accountancy."                                                                        
                                                                                                                                
3:50:50 PM                                                                                                                    
                                                                                                                                
JENNIFER SENETTE, Staff, Representative  Kurt Olson, Alaska State                                                               
Legislature, on behalf  of the House Labor  & Commerce Committee,                                                               
Representative Kurt  Olson, Chair, stated  that HB 147  would set                                                               
the  monthly  salary of  executive  secretary  for the  Board  of                                                               
Public  Accountancy (BPA)  at  a  range 23.    She mentioned  the                                                               
executive  secretary   position  was  created  during   the  last                                                               
legislature, which was widely recognized  and supported since the                                                               
all volunteer  board was understaffed  and struggling  to fulfill                                                               
its  mission.   The BPA  involves  the protection  of the  public                                                               
interest since  it has jurisdiction  over all  public accountants                                                               
statewide.   After the  position was  created, the  Department of                                                               
Administration  established  the  salary  at a  range  19.    The                                                               
sponsor  believes that  the BPA  will not  be able  to attract  a                                                               
qualified candidate to the position at that range.                                                                              
                                                                                                                                
3:52:47 PM                                                                                                                    
                                                                                                                                
MS.  SENETTE  advised members  that  the  bill that  created  the                                                               
position called  for it  to be at  a range 23.   The  fiscal note                                                               
called for  the position to be  a range 23.   The CPAs statewide,                                                               
the BPA, and  the Alaska Society of  Certified Public Accountants                                                               
all  supported this  position at  a range  23.   The CPAs  in the                                                               
state  pay  the executive  secretary's  salary  from its  license                                                               
fees.   Their support is  vital and  the signals from  within the                                                               
industry provide recognition  that a range 23  is appropriate for                                                               
this  position.   The  body of  professional  knowledge is  vast,                                                               
professional standards  can be complex and  requires professional                                                               
expertise,  knowledge and  experience.   The executive  secretary                                                               
represents  Alaska's  CPAs at  the  National  Association of  the                                                               
Boards  of   Public  Accountancy  (NABPA).     This  organization                                                               
significantly  addresses  policy changes,  including  enforcement                                                               
standards, and  proposed revisions  to statutes  and regulations.                                                               
This  is an  active board  and it  is important  that Alaska  has                                                               
adequate representation  to express Alaska's position  on issues.                                                               
The BPA needs to attract  someone with appropriate credentials to                                                               
engage  with the  national board.   She  stated that  a range  19                                                               
earns   approximately   $58,000   whereas  a   graduate   without                                                               
experience can  earn $60,000  without a  license.   The executive                                                               
secretaries  nationwide  are  paid significantly  higher  than  a                                                               
range  19.   She  stated that  the fact  that  the Department  of                                                               
Administration  (DOA) did  not consider  the  market factor  will                                                               
greatly  hamper  the  BPA's  efforts to  attract  and  retain  an                                                               
executive secretary.   She reiterated  the support for  the bill.                                                               
She stated that the DOA signals  its willingness to work with the                                                               
legislature in  terms of  its decision  on the  appropriate range                                                               
for this position.                                                                                                              
                                                                                                                                
3:56:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HOLMES asked for the base salary for a range 23.                                                                 
                                                                                                                                
MS. SENETTE  said she  did not have  the base  salary information                                                               
for a range 23 employee.                                                                                                        
                                                                                                                                
CHAIR  OLSON pointed  out that  this bill  was introduced  at the                                                               
request of Department of Administration (DOA).                                                                                  
                                                                                                                                
3:57:47 PM                                                                                                                    
                                                                                                                                
DON   RULIEN,  Member,   Alaska  Society   of  Certified   Public                                                               
Accountants  (ASCPA);  Council   Member,  American  Institute  of                                                               
Certified  Public  Accountants (AICPA),  stated  that  HB 147  is                                                               
important to  the profession.  The  professional knowledge needed                                                               
is  technical  and  comprehensive,  covering  audits,  state  and                                                               
federal   income  tax   arena,  and   ethical  standards.     The                                                               
enforcement can be  complex and it is imperative  that the Alaska                                                               
BPA  not  be  further  hampered  by  an  inexperienced  executive                                                               
secretary.  The  ASCPA believes HB 147 is an  important bill.  In                                                               
response to Chair  Olson, Mr. Rulien agreed the  CPA license fees                                                               
pay for the cost of the CPA's executive secretary.                                                                              
                                                                                                                                
3:59:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER asked  whether  the ASCPA  has anyone  in                                                               
mind as a  candidate at a range  23.  He suggested  that it would                                                               
be a good job for an Alaskan.                                                                                                   
                                                                                                                                
MR.  RULIEN  said he  was  uncertain.    In further  response  to                                                               
Representative  Saddler,  Mr.  Rulien responded  that  the  ASCPA                                                               
would like someone in Alaska  with CPA experience.  He reiterated                                                               
that  as previously  mentioned a  person graduating  from college                                                               
with a degree in accounting  can earn $60,000 prior to licensure.                                                               
He characterized the field of  accounting as a tight market right                                                               
now.                                                                                                                            
                                                                                                                                
3:59:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE THOMPSON  asked whether  the BPA had  any problems                                                               
keeping the executive secretary position manned.                                                                                
                                                                                                                                
MR.  RULIEN answered  that the  BPA  has experienced  significant                                                               
staff  turnover.   At one  point the  administrator position  was                                                               
shared  with  other boards.    He  offered  his belief  that  the                                                               
training  period would  require an  extensive training  period in                                                               
order  for the  executive secretary  to  learn the  CPA rules  in                                                               
Alaska.                                                                                                                         
                                                                                                                                
REPRESENTATIVE  HOLMES  answered  her   earlier  question.    She                                                               
advised members that  a range 19 step  A is set at  $59,000 and a                                                               
range 23,  step A  would earn  $77,100 per  year.   She suggested                                                               
someone  could check  her math  as she  based it  on the  monthly                                                               
salary  schedule.   She  related  the  specific salary  would  be                                                               
$6,425 per month for a range 23, step A.                                                                                        
                                                                                                                                
4:01:27 PM                                                                                                                    
                                                                                                                                
CHAIR  OLSON,  after first  determining  no  one else  wished  to                                                               
testify, closed public testimony on HB 147.                                                                                     
                                                                                                                                
REPRESENTATIVE HOLMES  moved to  report HB  147 out  of committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes.   There being no objection,  HB 147 was reported  from the                                                               
House Labor and Commerce Standing Committee.                                                                                    

Document Name Date/Time Subjects
HB118 Supporting Documents - Letter AEDC 2-18-2011.pdf HL&C 2/25/2011 3:15:00 PM
HB 118
HB118 Supporting Documents - Letter John Wanamaker2-22-2011.pdf HL&C 2/25/2011 3:15:00 PM
HB 118
HB125 Fiscal Note - CCED-ABC-02-18-11.pdf HL&C 2/25/2011 3:15:00 PM
HB 125
HB125 Fiscal Note - CCED-ASD-02-18-11.pdf HL&C 2/25/2011 3:15:00 PM
HB 125
HB125 Supporting Documents - Letter Andy Lundquist 2-17-2011.pdf HL&C 2/25/2011 3:15:00 PM
HB 125
HB125 Fiscal Note Explanation - Letter Dan Spencer DPS 2-17-2011.pdf HL&C 2/25/2011 3:15:00 PM
HB 125
HB147 Fiscal Note-CCED-CBPL-02-18-11.pdf HL&C 2/25/2011 3:15:00 PM
HB 147
HB147 Sponsor Statement.pdf HL&C 2/25/2011 3:15:00 PM
HB 147
HB147 Supporting Documents-Letter Alaska Society of CPAs 2-1-2011.pdf HL&C 2/25/2011 3:15:00 PM
HB 147
HB147 ver A.pdf HL&C 2/25/2011 3:15:00 PM
HB 147
HB147 Supporting Documents-Letter Chair of State Board 1-25-2011.pdf HL&C 2/25/2011 3:15:00 PM
HB 147
HB155 Draft Proposed Amendment ver B.3.pdf HL&C 2/25/2011 3:15:00 PM
HB 155
HB155 Fiscal Note-DOLWD-LSS-02-20-2011.pdf HL&C 2/25/2011 3:15:00 PM
HB 155
HB155 Sectional Summary.pdf HL&C 2/25/2011 3:15:00 PM
HB 155
HB155 Sponsor Statement.pdf HL&C 2/25/2011 3:15:00 PM
HB 155
HB155 Supporting Documents - Email Dave Stone 2-23-2011.pdf HL&C 2/25/2011 3:15:00 PM
SFIN 4/17/2011 10:00:00 AM
HB 155
HB155 Supporting Documents-AK State Homebuilders Association Letter 2-22-11.pdf HL&C 2/25/2011 3:15:00 PM
HB 155
HB155 Supporting Documents-AML Letter 2-23-11.pdf HL&C 2/25/2011 3:15:00 PM
HB 155
HB155 Supporting Documents-AML Resolution 11-19-2010.pdf HL&C 2/25/2011 3:15:00 PM
HB 155
HB155 Supporting Documents-DOL Dollar Threshold Sheet 1-1-11.pdf HL&C 2/25/2011 3:15:00 PM
HB 155
HB155 Supporting Documents-Kenai Peninsula Borough Resolution 12-7-10.pdf HL&C 2/25/2011 3:15:00 PM
HB 155
HB155 Supporting Documents-Letter Yakutat Mayor 2-23-11.pdf HL&C 2/25/2011 3:15:00 PM
HB 155
HB155 ver B.pdf HL&C 2/25/2011 3:15:00 PM
HB 155
HB125 Fiscal Note Explanation - Letter Jo Ellen Hanrahan DCCED 2-24-2011.pdf HL&C 2/25/2011 3:15:00 PM
HB 125
HB125-CCED-ASD-02-24-11 (2).pdf HL&C 2/25/2011 3:15:00 PM
HB 125
HB125-CCED-ABC-02-24-11.pdf HL&C 2/25/2011 3:15:00 PM
HB 125
HB118 Supporting Documents 26 USC 41(d) Explanation.pdf HL&C 2/25/2011 3:15:00 PM
HB 118