01/28/2013 03:15 PM House LABOR & COMMERCE

            HB 26-EXTEND BOARD OF PUBLIC ACCOUNTANCY                                                                        
3:23:11 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON  announced that the  first order of business  would be                                                              
HOUSE BILL NO. 26,  "An Act extending the termination  date of the                                                              
Board  of  Public  Accountancy;  and providing  for  an  effective                                                              
date."                                                                                                                          
                                                                                                                                
3:23:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MIKE  HAWKER,  Alaska  State  Legislature,  stated                                                              
that HB 26  is one of the  ministerial duties of  the legislature,                                                              
which is reauthorization  of boards and commissions  in compliance                                                              
with the  recommendations made  by the  legislative auditors.   He                                                              
related the  bill would extend the  termination date of  the Board                                                              
of Public  Accountancy (BPA)  until June  30, 2021, in  accordance                                                              
with  the  recommendations  of  the  legislative  auditors.    The                                                              
auditors concluded  that the  BPA serves  the public interests  by                                                              
effectively  licensing certified  public accountants.   The  board                                                              
also  monitors the  profession  and  ensures that  only  qualified                                                              
individuals practice as certified public accountants (CPAs).                                                                    
                                                                                                                                
REPRESENTATIVE  HAWKER said the  auditor's one recommendation  had                                                              
nothing to do with  the board and instead pertained  to an ongoing                                                              
administrative   issue  within   the  Division  of   Corporations,                                                              
Business and  Professional Licensing  (CBPL) in the  Department of                                                              
Commerce, Community  & Economic  Development (DCCED).   He related                                                              
the  CBPL  division   administers  all  professional   boards  and                                                              
licenses, but  the division stills  needs to address  deficiencies                                                              
with its  investigative case  management system.   He  pointed out                                                              
the CBPL  agrees with this decision  and is continuing  to work to                                                              
implement  the   system.    He  noted  previously   another  audit                                                              
recommendation was  made for improvements  to the CBPL,  which the                                                              
division has  resolved.   He acknowledged  the extension  is until                                                              
June 30,  2021, which spans  a long period,  but pointed  out that                                                              
audits cost money.   He did not see the state  dissolving the BPA,                                                              
since  the regulation  of accountants  will  always be  necessary.                                                              
The BPA  has demonstrated  its maturity,  manages the  CPAs, works                                                              
with  the legislature,  and government  as clearly  intended.   He                                                              
asked members to pass out the bill.                                                                                             
                                                                                                                                
3:27:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HERRON  asked  for  a  status  on  the  corrective                                                              
measures.                                                                                                                       
                                                                                                                                
REPRESENTATIVE  HAWKER asked  the division  to respond, but  added                                                              
he  thought the  management has  undergone  personnel changes  and                                                              
has developed an administrative plan.                                                                                           
                                                                                                                                
3:28:22 PM                                                                                                                    
                                                                                                                                
KRIS  CURTIS,   Legislative  Auditor,   Division  of   Legislative                                                              
Finance,  Legislative Agencies  & Offices,  said the auditors  are                                                              
just beginning  to conduct  five sunset  audits and auditors  have                                                              
not  revisited the  agency to  determine whether  the finding  has                                                              
been addressed;  however someone from  the division might  be able                                                              
to answer the status.                                                                                                           
                                                                                                                                
3:29:14 PM                                                                                                                    
                                                                                                                                
DON HABEGER,  Director, Corporations,  Business, and  Professional                                                              
Licensing  (CBPL), Department  of Commerce,  Community &  Economic                                                              
Development  (DCCED),  responded that  the  division  has taken  a                                                              
number of  steps to correct  the deficiency.   He related  in 2011                                                              
the legislative auditors  audited the division.  At  the time, the                                                              
division  had recently  purchased and  installed an  investigative                                                              
database.   One  audit finding  was that  the database  conversion                                                              
did  not convert  adequately  and  data was  missing.   Thus,  the                                                              
division needed  to go back and  retool.  The  division discovered                                                              
other issues  and formed  a task force  that identified  11 issues                                                              
to  improve the  database  software and  hardware.   The  division                                                              
requested and received  supplemental funding from  the legislature                                                              
in  FY 12  to implement  these tasks.   He  reported the  division                                                              
marshaled   task  force   two  and  is   about  halfway   finished                                                              
implementing the  11 tasks.   He anticipated  it will take  to the                                                              
end of FY 13 to complete.                                                                                                       
                                                                                                                                
3:31:22 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON asked if he was comfortable with the extension date.                                                                
                                                                                                                                
MR. HABEGER  answered that  at this  time he  is comfortable.   He                                                              
said the vendor seems to be responding appropriately.                                                                           
                                                                                                                                
3:31:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  related some  boards have had  issues with                                                              
the investigative expenses  and asked him whether this  is also an                                                              
issue with the BPA.                                                                                                             
                                                                                                                                
MR.  HABEGER answered  no,  not with  investigations.   He  agreed                                                              
with  Representative  Hawker's  view  that  the BPA  is  a  mature                                                              
board.   He said  he has observed  the BPA  at meetings  and "they                                                              
don't take any guff  from their licensees."  He  concluded the BPA                                                              
is quite an impressive group in how it deals with its issues.                                                                   
                                                                                                                                
3:32:50 PM                                                                                                                    
                                                                                                                                
CHAIR  OLSON,  after  first  determining  no one  else  wished  to                                                              
testify, closed public testimony on HB 26.                                                                                      
                                                                                                                                
3:33:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  REINBOLD moved to  report HB  26 out of  committee                                                              
with  individual  recommendations   and  the  accompanying  fiscal                                                              
note.   There  being no  objection, HB  26 was  reported from  the                                                              
House Labor and Commerce Standing Committee.                                                                                    
                                                                                                                                
3:33:43 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 3:33 p.m. to 3:36 p.m.