Legislature(2011 - 2012)BARNES 124
02/25/2011 03:15 PM House LABOR & COMMERCE
Audio | Topic |
---|---|
Start | |
HB125 | |
HB147 | |
HB155 | |
Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
+= | HB 118 | TELECONFERENCED | |
*+ | HB 147 | TELECONFERENCED | |
*+ | HB 155 | TELECONFERENCED | |
+ | TELECONFERENCED | ||
+= | HB 125 | TELECONFERENCED | |
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.