02/01/2006 03:15 PM House LABOR & COMMERCE
| Audio | Topic | 
|---|---|
| Start | |
| HB242 | |
| HB274 | |
| HB331 | |
| Adjourn | 
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 274 | TELECONFERENCED | |
| += | HB 242 | TELECONFERENCED | |
| *+ | HB 331 | TELECONFERENCED | |
| + | TELECONFERENCED | 
                    ALASKA STATE LEGISLATURE                                                                                  
          HOUSE LABOR AND COMMERCE STANDING COMMITTEE                                                                         
                        February 1, 2006                                                                                        
                           3:23 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Tom Anderson, Chair                                                                                              
Representative Pete Kott                                                                                                        
Representative Gabrielle LeDoux                                                                                                 
Representative Bob Lynn                                                                                                         
Representative Norman Rokeberg                                                                                                  
Representative Harry Crawford                                                                                                   
Representative David Guttenberg                                                                                                 
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                              
HOUSE BILL NO. 242                                                                                                              
"An Act  relating to the  deposit of certain  penalties collected                                                               
under the unemployment insurance  program; requiring an employing                                                               
unit  with  a change  in  ownership,  management, or  control  to                                                               
notify the Department  of Labor and Workforce  Development of the                                                               
ownership  change; regarding  the unemployment  contribution rate                                                               
of an  employing unit;  and defining  'business' for  purposes of                                                               
statutes  setting unemployment  contribution rates;  establishing                                                               
the crime  of obtaining  an unemployment  rate by  deception; and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
     - MOVED CSHB 242(L&C) OUT OF COMMITTEE                                                                                     
                                                                                                                                
SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 274                                                                                       
"An Act  relating to  the practice  of accounting;  and providing                                                               
for an effective date."                                                                                                         
                                                                                                                                
     - MOVED CSSSHB 274(L&C) OUT OF COMMITTEE                                                                                   
                                                                                                                                
HOUSE BILL NO. 331                                                                                                              
"An Act  relating to access by  persons under 21 years  of age to                                                               
premises licensed to sell alcoholic beverages as clubs."                                                                        
                                                                                                                                
     - MOVED CSHB 331(L&C) OUT OF COMMITTEE                                                                                     
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                              
BILL: HB 242                                                                                                                  
SHORT TITLE: UNEMPLOYMENT INSURANCE FUND & TAXES                                                                                
SPONSOR(s): REPRESENTATIVE(s) CRAWFORD                                                                                          
                                                                                                                                
04/01/05       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/01/05       (H)       L&C, JUD, FIN                                                                                          
01/25/06       (H)       L&C AT 3:15 PM CAPITOL 17                                                                              
01/25/06       (H)       Heard & Held                                                                                           
01/25/06       (H)       MINUTE(L&C)                                                                                            
                                                                                                                                
BILL: HB 274                                                                                                                  
SHORT TITLE: PUBLIC ACCOUNTANTS                                                                                                 
SPONSOR(s): REPRESENTATIVE(s) HAWKER                                                                                            
                                                                                                                                
04/18/05       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/18/05       (H)       L&C, FIN                                                                                               
01/11/06       (H)       SPONSOR SUBSTITUTE INTRODUCED                                                                          
01/11/06       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/11/06       (H)       L&C, FIN                                                                                               
01/25/06       (H)       L&C AT 3:15 PM CAPITOL 17                                                                              
01/25/06       (H)       Heard & Held                                                                                           
01/25/06       (H)       MINUTE(L&C)                                                                                            
                                                                                                                                
BILL: HB 331                                                                                                                  
SHORT TITLE: UNDERAGE MILITARY ON LICENSED PREMISES                                                                             
SPONSOR(s): REPRESENTATIVE(s) ELKINS                                                                                            
                                                                                                                                
01/09/06       (H)       PREFILE RELEASED 12/30/05                                                                              
01/09/06       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/09/06       (H)       L&C, FIN                                                                                               
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
PAT SHIER, Acting Deputy Director                                                                                               
Division of Employment Security                                                                                                 
Department of Labor & Workforce Development                                                                                     
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in favor of Amendment 1 to HB
242.                                                                                                                            
                                                                                                                                
REPRESENTATIVE MIKE HAWKER                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Spoke as the sponsor of SSHB 274.                                                                          
                                                                                                                                
DON BREMNER, Member                                                                                                             
Board of Director                                                                                                               
Yak-Tat Kwaan, Inc. (YKI)                                                                                                       
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in support of SSHB 274 with                                                                      
Amendment 1.                                                                                                                    
                                                                                                                                
JEANNETTE JAMES, Member                                                                                                         
Alaska Society of Independent Accountants (ASIA)                                                                                
North Pole, Alaska                                                                                                              
POSITION STATEMENT:  Expressed concerns with SSHB 274.                                                                          
                                                                                                                                
MICHAEL CURNOW, Independent Accountant                                                                                          
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of SSHB 274, except                                                                   
with regard to the language referencing the attest functions.                                                                   
                                                                                                                                
BERNADETTE KOPPY, Vice President                                                                                                
Alaska Society of Independent Accountants (ASIA)                                                                                
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified that ASIA supports Amendments 1                                                                  
and 2 to SSHB 274.                                                                                                              
                                                                                                                                
ELAINE WILLIAMSON, Appointee                                                                                                    
Alaska Board of Public Accountancy                                                                                              
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Stated her personal support for SSHB 274.                                                                  
                                                                                                                                
REPRESENTATIVE JIM ELKINS                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Spoke as the sponsor of HB 331.                                                                            
                                                                                                                                
JIM VAN HORN, Staff                                                                                                             
to Representative Jim Elkins                                                                                                    
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented HB 331, on behalf of the sponsor,                                                                
Representative Elkins.                                                                                                          
                                                                                                                                
DOUG GRIFFIN, Director                                                                                                          
Alcoholic Beverage Control Board ("ABC Board")                                                                                  
Department of Public Safety                                                                                                     
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified on HB 331.                                                                                       
                                                                                                                                
DEAN HILL                                                                                                                       
American Legion                                                                                                                 
POSITION  STATEMENT:    During   hearing  of  HB  331,  discussed                                                               
identification checks at military clubs.                                                                                        
                                                                                                                                
RICHARD SMITH, Post Commander                                                                                                   
American Legion                                                                                                                 
Seward, Alaska                                                                                                                  
POSITION STATEMENT:  Indicated that he favored [HB 331].                                                                        
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
CHAIR TOM ANDERSON  called the House Labor  and Commerce Standing                                                             
Committee meeting  to order at.   Representatives Anderson, Kott,                                                               
Guttenberg,  Crawford, Rokeberg,  and  Lynn were  present at  the                                                               
call to order  3:23:25 PM.  Representative LeDoux  arrived as the                                                             
meeting was in progress.                                                                                                        
                                                                                                                                
HB 242-UNEMPLOYMENT INSURANCE FUND & TAXES                                                                                    
                                                                                                                                
3:23:25 PM                                                                                                                    
                                                                                                                                
CHAIR ANDERSON announced  that the first order  of business would                                                               
be  HOUSE BILL  NO.  242,  "An Act  relating  to  the deposit  of                                                               
certain  penalties  collected  under the  unemployment  insurance                                                               
program; requiring an employing unit  with a change in ownership,                                                               
management,  or control  to notify  the Department  of Labor  and                                                               
Workforce  Development of  the  ownership  change; regarding  the                                                               
unemployment  contribution   rate  of  an  employing   unit;  and                                                               
defining   'business'   for    purposes   of   statutes   setting                                                               
unemployment  contribution  rates;   establishing  the  crime  of                                                               
obtaining an  unemployment rate by  deception; and  providing for                                                               
an effective date."                                                                                                             
                                                                                                                                
CHAIR ANDERSON  moved that the  committee adopt CSHB  242 Version                                                               
24-LS0821\Y,  Wayne,  1/27/06 as  the  working  document.   There                                                               
being no objection, Version Y was before the committee.                                                                         
                                                                                                                                
REPRESENTATIVE CRAWFORD  explained that the CS  would change page                                                               
2,  lines  1-3, further  defining  that  a change  in  ownership,                                                               
management or control means that  it is the responsible party who                                                               
pays the unemployment insurance.                                                                                                
                                                                                                                                
PAT  SHIER,  Acting  Deputy   Director,  Division  of  Employment                                                               
Security,  Department of  Labor &  Workforce Development  (DLWD),                                                               
stated that  [Version Y] benefits  the public by  better defining                                                               
who  is being  established as  the responsible  party.   He added                                                               
that this  language has been  used in other sections  of statute,                                                               
and has been "effective for decades."                                                                                           
                                                                                                                                
REPRESENTATIVE  ROKEBERG asked  for  confirmation  that the  only                                                               
position changes that  need to be reported to  the department are                                                               
those  in management  positions  with check  signing and  payment                                                               
confirmation responsibilities.                                                                                                  
                                                                                                                                
MR. SHIER confirmed that this is correct.                                                                                       
                                                                                                                                
REPRESENTATIVE KOTT asked  if there had been  any discussion with                                                               
the Department of  Law regarding a retroactive  effective date of                                                               
January 2006.                                                                                                                   
                                                                                                                                
REPRESENTATIVE CRAWFORD replied  that he had not had  a chance to                                                               
discuss this with the department.                                                                                               
                                                                                                                                
REPRESENTATIVE ROKEBERG pointed  out that [Sections 1,  2, and 4]                                                               
have an effective date of July  1, 2006, while [Sections 5 and 6]                                                               
have an immediate effective date.                                                                                               
                                                                                                                                
CHAIR  ANDERSON   opined  that  the  department   feels  this  is                                                               
necessary.                                                                                                                      
                                                                                                                                
REPRESENTATIVE GUTTENBERG  moved to report CSHB  242, Version 24-                                                               
LS0821\Y,  Wayne,  1/27/06  out   of  committee  with  individual                                                               
recommendations and  the accompanying fiscal notes.   There being                                                               
no objection, CSHB  242(L&C) was reported out of  the House Labor                                                               
& Commerce Standing Committee.                                                                                                  
                                                                                                                                
HB 274-PUBLIC ACCOUNTANTS                                                                                                     
                                                                                                                                
3:31:08 PM                                                                                                                    
                                                                                                                                
CHAIR ANDERSON  announced that the  next order of  business would                                                               
be SPONSOR  SUBSTITUTE FOR HOUSE  BILL NO. 274, "An  Act relating                                                               
to the  practice of  accounting; and  providing for  an effective                                                               
date."                                                                                                                          
                                                                                                                                
REPRESENTATIVE  MIKE HAWKER,  Alaska State  Legislature, speaking                                                               
as the  sponsor of  SSHB 274, informed  the committee  that after                                                               
reviewing  the   issues  discussed  at  the   prior  hearing,  he                                                               
determined that  an amendment  was in order.   He  explained that                                                               
the  amendment would  address the  "prepare" and  "compile" issue                                                               
and  leaves  intact  all   existing  statutory  authority,  while                                                               
providing some safe harbor language in which an independent                                                                     
accountant can seek refuge.                                                                                                     
                                                                                                                                
3:32:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROKEBERG moved that the committee adopt Amendment                                                                
1, which read [original punctuation provided]:                                                                                  
                                                                                                                                
     Page 27, lines 9 - 20:                                                                                                     
                                                                                                                                
          Delete "the following disclaimer language when                                                                    
                                                                                                                                
     used  by  nonlicensees  in  connection  with  financial                                                                
                                                                                                                                
     statements:                                                                                                            
                                                                                                                                
          (A) "I (we) have prepared the accompanying                                                                        
                                                                                                                                
     (financial statements) of (name  of entity) as of (time                                                                
                                                                                                                                
     period) for the (period)  then ended. This presentation                                                                
                                                                                                                                
     is  limited  to preparing,  in  the  form of  financial                                                                
                                                                                                                                
     statements, information  that is the  representation of                                                                
                                                                                                                                
     management (owners)."; or                                                                                              
                                                                                                                                
          (B) "I (we) have not audited or reviewed the                                                                      
                                                                                                                                
     accompanying financial statements  and, accordingly, do                                                                
                                                                                                                                
     not express an  opinion or any other  form of assurance                                                                
                                                                                                                                
     on them." [COMPILATION  OF FINANCIAL STATEMENT LANGUAGE                                                                
                                                                                                                                
     THAT  DOES NOT  EXPRESS OR  IMPLY ASSURANCE  OR SPECIAL                                                                    
                                                                                                                                
     KNOWLEDGE OR COMPETENCE.] "                                                                                                
                                                                                                                                
     Insert                                                                                                                     
                                                                                                                                
          "(A) a compilation of financial statement                                                                         
                                                                                                                                
     language that  does not express  or imply  assurance or                                                                    
                                                                                                                                
     special knowledge or competence; or                                                                                    
                                                                                                                                
          "(B) the following disclaimer language when used                                                                  
                                                                                                                                
     by   nonlicensees   in    connection   with   financial                                                                
                                                                                                                                
     statements:                                                                                                            
                                                                                                                                
          (i) "I (we) have prepared the accompanying                                                                        
                                                                                                                                
     (financial statements) of (name  of entity) as of (time                                                                
                                                                                                                                
     period) for the (period)  then ended. This presentation                                                                
       is limited to preparing, in the form of financial                                                                    
                                                                                                                                
     statements, information that is the representation of                                                                  
                                                                                                                                
     management (owners)."; or                                                                                              
                                                                                                                                
          (ii) "I (we) have not audited or reviewed the                                                                     
                                                                                                                                
     accompanying financial statements and, accordingly, do                                                                 
                                                                                                                                
     not express an opinion or any other form of assurance                                                                  
                                                                                                                                
     on them." [.]"                                                                                                       
                                                                                                                                
                                                                                                                                
3:33:30 PM                                                                                                                    
                                                                                                                                
CHAIR  ANDERSON,  upon  determining  there  were  no  objections,                                                               
announced that Amendment 1 was adopted.                                                                                         
                                                                                                                                
3:33:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LYNN  moved that the committee  adopt Amendment 2,                                                               
as follows:                                                                                                                     
                                                                                                                                
     Page 3, line 24, following "regulations":                                                                                  
          Insert "per the procedures under negotiated                                                                           
     regulation making"                                                                                                         
                                                                                                                                
CHAIR ANDERSON objected for discussion purposes.                                                                                
                                                                                                                                
REPRESENTATIVE LYNN  explained that although the  Board of Public                                                               
Accountancy   doesn't   license  independent   accountants,   the                                                               
decisions the board  makes does have a significant  impact on the                                                               
profession.     Representative  Lynn  expressed  his   desire  to                                                               
maintain   the  [current]   balance   between  Certified   Public                                                               
Accountants (CPAs) and independent accountants.                                                                                 
                                                                                                                                
REPRESENTATIVE   HAWKER  stated   that  Amendment   2  adds   the                                                               
requirement of  additional supplemental regulatory  procedures in                                                               
the regulatory authority  for the Board of  Public Accountancy to                                                               
address  the   attest  function.    Since   the  regulations  are                                                               
addressing  the  attest  function,  there is  no  affect  on  the                                                               
independent accountants.   He  highlighted that  SSHB 274  has an                                                               
immediate effective date in regard  to the authority to  prepared                                                               
the   regulations,  but   a  delayed   effective  date   for  the                                                               
legislation.     Therefore,  there's   an  opportunity   for  the                                                               
regulatory  process to  go forward.    The negotiated  regulation                                                               
making  is   really  a  supplemental   procedure,  and   in  this                                                               
particular  situation  something  is  being  regulated  that  has                                                               
nothing  to  do  with independent  accountants.    Representative                                                               
Hawker opined  that it's merely an  additional regulatory burden,                                                               
an   additional  cost,   an  additional   time,  and   additional                                                               
inefficiency in governing.                                                                                                      
                                                                                                                                
CHAIR ANDERSON referred to a  letter from Max Mertz, Chairperson,                                                               
Alaska  Board  of Public  Accountancy,  dated  January 26,  2006,                                                               
which related  the Alaska Board  of Public  Accountancy's support                                                               
of SSHB 274.                                                                                                                    
                                                                                                                                
3:38:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX inquired  as to what the  language "per the                                                               
procedures under negotiated regulation making" means.                                                                           
                                                                                                                                
3:39:12 PM                                                                                                                    
                                                                                                                                
DON  BREMNER,  Member, Board  of  Director,  Yak-Tat Kwaan,  Inc.                                                               
(YKI),  said that  SSHB 274  has been  a long  time coming.   The                                                               
legislation draws a clear line  between qualified and unqualified                                                               
accountants   and   accounting   services.     Furthermore,   the                                                               
legislation addresses accountability and  liability.  Mr. Bremner                                                               
recalled   his  past   experience   as  an   officer  of   Native                                                               
corporations   and  the   scams  and   schemes  that   have  cost                                                               
corporations large sums of money.   He highlighted a Ponzi scheme                                                               
that cost one Native corporation  over $7 million.  Therefore, at                                                               
least  this  legislation raises  the  standards  such that  those                                                               
presenting themselves  as accountants  or CPAs  are who  they say                                                               
they are.   Mr. Bremner concluded  by relating his hope  that the                                                               
committee forwards this legislation.                                                                                            
                                                                                                                                
CHAIR ANDERSON  turned attention  to Amendment 2,  which attempts                                                               
to discern the difference between CPAs and non-CPAs.                                                                            
                                                                                                                                
MR.  BREMNER, in  further response  to Chair  Anderson, specified                                                               
that he supports SSHB 274 with Amendment 1.                                                                                     
                                                                                                                                
3:42:27 PM                                                                                                                    
                                                                                                                                
JEANNETTE   JAMES,   Member,   Alaska  Society   of   Independent                                                               
Accountants (ASIA),  referred to  the language  on page  3, lines                                                               
25-26,  which   says:    "the   board  may  adopt   the  criteria                                                               
established by a  nationally recognized professional organization                                                               
for  accountants."    The   aforementioned  doesn't  specify  the                                                               
organizations  to which  it applies,  and therefore  there is  no                                                               
knowledge  with  regard  to  what   it  may  do  in  relation  to                                                               
independent  accountants.   Ms.  James  then  explained that  the                                                               
negotiated regulation making is  a complicated system that allows                                                               
the  discussion of  issues before  the  regulations are  drafted.                                                               
Although she understood, after talking  to the sponsor, that SSHB
274 refers strictly  to CPAs, she opined that it  is important to                                                               
place it on  the record.  Ms. James emphasized  that she wants to                                                               
be sure  that SSHB 274 doesn't  impact [independent accountants],                                                               
which seems to  be partially addressed in Amendment  1.  However,                                                               
[independent   accountants]   don't   know  what   the   [attest]                                                               
regulations [of nationally  recognized professional organizations                                                               
for accountants] are and what effect they will have.                                                                            
                                                                                                                                
3:45:44 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX  inquired as to  whether, on page  3, after                                                               
line  23,   inserting  the  language   "the  board   shall  adopt                                                               
regulations with respect to  certified public accountants" rather                                                               
than the  language proposed  in Amendment  2 would  address these                                                               
concerns.                                                                                                                       
                                                                                                                                
MS.  JAMES characterized  Representative  LeDoux's suggestion  as                                                               
extra language, and said that  the aforementioned discussion will                                                               
provide  some  strength  with  regard to  the  intent  that  this                                                               
applies only to CPAs.                                                                                                           
                                                                                                                                
3:47:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KOTT  recalled that the sponsor's  opening remarks                                                               
clarified  that   this  legislation  only  regulates   CPAs,  and                                                               
therefore  he felt  the issues  [of the  independent accountants]                                                               
are covered.                                                                                                                    
                                                                                                                                
3:47:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ROKEBERG highlighted  that SSHB  274 falls  under                                                               
Title 8 and  the Division of Occupational Licensing.   He pointed                                                               
out that  Section 2 gives  the [Board of Public  Accountancy] the                                                               
ability to  regulate the profession  of accountancy.  He  said he                                                               
wasn't sure  that this  legislation speaks  only to  CPAs because                                                               
part  of  the  division's  procedure  is  to  ensure  that  those                                                               
practicing are qualified  and meet the standards.   Therefore, he                                                               
opined that  this legislation does  impact those who  aren't CPAs                                                               
and  thus  redrafting  the  legislation  such  that  it  excluded                                                               
[independent accountants] would be "skating on thin ice."                                                                       
                                                                                                                                
3:50:30 PM                                                                                                                    
                                                                                                                                
MS.  JAMES, in  response  to an  earlier  question regarding  the                                                               
definition  of  "negotiated  regulation making",  explained  that                                                               
[negotiated   regulation   making]    simply   means   that   the                                                               
stakeholders are  called together to determine  what the language                                                               
in  the  regulation  should  say.   When  the  aforementioned  is                                                               
completed,  it moves  through the  regular process  of regulation                                                               
making.   Although it may  be a lengthier process,  usually there                                                               
is no debate that results [after the regulations are in place].                                                                 
                                                                                                                                
REPRESENTATIVE  ROKEBERG  interjected  that the  negotiated  rule                                                               
making process  works very well  in the natural  resources arena,                                                               
particularly when there are a large number of stakeholders.                                                                     
                                                                                                                                
REPRESENTATIVE  LEDOUX questioned  why the  regulations regarding                                                               
attest functions  only applying to  CPAs wouldn't be  stronger if                                                               
that was  specified in statute  rather than merely leaving  it to                                                               
be ascertained from the testimony today.                                                                                        
                                                                                                                                
3:52:48 PM                                                                                                                    
                                                                                                                                
CHAIR  ANDERSON inquired  as to  what/who is  regulated now.   He                                                               
also inquired  as to how someone  would grieve to the  state over                                                               
mistakes  made by  an [independent  accountant/bookkeeper] versus                                                               
mistakes made by a CPA.                                                                                                         
                                                                                                                                
3:54:01 PM                                                                                                                    
                                                                                                                                
MS. JAMES pointed  out that there is a court  system.  She opined                                                               
that  the  public  is  somewhat protected  from  those  who  make                                                               
mistakes.   She  reiterated  that she  is  comfortable with  this                                                               
conversation   on   the   record   that   indicates   that   this                                                               
[legislation]  speaks  only   to  CPAs  and  has   no  effect  on                                                               
independent accountants.                                                                                                        
                                                                                                                                
3:55:39 PM                                                                                                                    
                                                                                                                                
CHAIR ANDERSON recalled Representative  Rokeberg's question as to                                                               
whether SSHB 274  with Amendment 1 is sufficient  and accurate in                                                               
relaying  that the  legislation doesn't  impact those  performing                                                               
accounting activities who aren't CPAs.                                                                                          
                                                                                                                                
3:56:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROKEBERG  pointed out that Section  7 only relates                                                               
to rule  making as  it relates  to attest  functions.   "This has                                                               
nothing to  do with the  overall rule-making ability which  is in                                                               
the catch-all  portion of  Title 8,  which allows  any regulatory                                                               
rulemaking by  any occupational licensing board."   Therefore, he                                                               
opined that [Section 7] isn't a  way to allow the Board of Public                                                               
Accountancy to redraw the rules because they already exist.                                                                     
                                                                                                                                
CHAIR  ANDERSON inquired  as to  whether Representative  Rokeberg                                                               
feels that  Amendment 2  is in opposition  to the  legislation or                                                               
duplicative and not necessary.                                                                                                  
                                                                                                                                
REPRESENTATIVE ROKEBERG opined that  it's not appropriate in this                                                               
section and he  said he wasn't sure that it  was appropriate in a                                                               
new section  either because it could  "break the mold of  all the                                                               
other occupational licensing."                                                                                                  
                                                                                                                                
CHAIR   ANDERSON  expressed   his  concern   that  it   might  be                                                               
precedential.                                                                                                                   
                                                                                                                                
REPRESENTATIVE LYNN asked if Ms.  James would be more comfortable                                                               
with  Amendment  2  as  it's  written or  with  the  language  as                                                               
Representative LeDoux suggested.                                                                                                
                                                                                                                                
MS. JAMES reiterated  that she feels comfortable  with the intent                                                               
[of SSHB  274 unamended]  being placed on  the record.   However,                                                               
she noted that there are  other [independent accountants] who may                                                               
hold different views.  Ms.  James specified that she would prefer                                                               
the language  in Section 7  to refer  to CPAs rather  than merely                                                               
"accountants."                                                                                                                  
                                                                                                                                
3:59:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KOTT  inquired as  to how  Ms. James  would define                                                               
"persons professing special competence in accountancy."                                                                         
                                                                                                                                
MS. JAMES answered that one would have  to pass a test.  In fact,                                                               
members  of  the National  Society  of  Accountants can  take  an                                                               
examination   to   be   certified   as  an   accountant.      The                                                               
aforementioned is  different than  a certified  public accountant                                                               
which  is a  license  from  the state  and  for  which there  are                                                               
different rules.   She opined  that the current system  in Alaska                                                               
works for  this state, and  therefore she expressed  concern with                                                               
the   reference  to   the   nationally  recognized   professional                                                               
organizations because it treats all states the same.                                                                            
                                                                                                                                
REPRESENTATIVE  KOTT, referring  to Section  2, pointed  out that                                                               
the purpose is  to regulate those who have  special competence in                                                               
accounting,  which he  associated with  a  CPA.   He related  his                                                               
understanding that there are three  different layers of work that                                                               
a CPA can  perform and a public accountant can  enter the top two                                                               
layers.                                                                                                                         
                                                                                                                                
REPRESENTATIVE   LEDOUX   asked   then   if   anyone   can   call                                                               
himself/herself an accountant in Alaska.                                                                                        
                                                                                                                                
MS. JAMES replied yes.                                                                                                          
                                                                                                                                
4:03:11 PM                                                                                                                    
                                                                                                                                
MICHAEL  CURNOW, Independent  Accountant, informed  the committee                                                               
that  he  is  a member  of  ASIA  and  a  past president  of  the                                                               
organization.   He  said that  Amendment 1  addressed one  of his                                                               
[concerns].    However, the  legislation,  even  in the  face  of                                                               
today's  testimony,  impacts  him as  an  independent  accountant                                                               
because  the   definition  of  attest  was   changed  to  include                                                               
compilations, which he said he  does occasionally.  Therefore, he                                                               
requested  the  negotiated  regulatory  process,  which  he  said                                                               
provides him with  more comfort.  Mr. Curnow noted  that he likes                                                               
the rest of the legislation and hopes that it passes.                                                                           
                                                                                                                                
4:05:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KOTT  asked how Mr.  Curnow would  define "persons                                                               
professing special competence in accountancy."   He also asked if                                                               
Mr. Curnow would place himself in that group.                                                                                   
                                                                                                                                
MR. CURNOW  answered that  he would not  include himself  in that                                                               
category because that [refers] to a  CPA who has received a state                                                               
license.   Mr. Curnow explained  that he holds a  federal license                                                               
and his work concentrates on taxes.                                                                                             
                                                                                                                                
4:06:40 PM                                                                                                                    
                                                                                                                                
BERNADETTE KOPPY,  Vice President, Alaska Society  of Independent                                                               
Accountants  (ASIA), informed  the committee  that ASIA  supports                                                               
Amendments  1 and  2 to  SSHB 274.   Ms.  Koppy opined  that this                                                               
legislation [as  amended] will  allow independent  accountants to                                                               
continue doing business in the manner in which they do now.                                                                     
                                                                                                                                
4:08:05 PM                                                                                                                    
                                                                                                                                
ELAINE   WILLIAMSON,   Appointee,    Alaska   Board   of   Public                                                               
Accountancy, stated  her personal  support for  SSHB 274  and its                                                               
amendments.   She opined  that conforming  the state  statutes to                                                               
the Uniform Accountancy Act will  benefit both the profession and                                                               
the Alaska  Board of Public  Accountancy.  Ms.  Williamson opined                                                               
that  the reciprocity  afforded [by  adopting the  aforementioned                                                               
Act by  reference] is beneficial  in that  it will allow  CPAs to                                                               
practice in  multiple jurisdictions without having  to conform to                                                               
multiple laws  and requirements.   Furthermore,  this legislation                                                               
allows  the   Alaska  Board  of   Public  Accountancy   to  amend                                                               
regulations as  the national  organizations change  in accordance                                                               
with the Uniform Accountancy Act.                                                                                               
                                                                                                                                
4:09:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KOTT asked if Ms.  Williamson, who is a CPA, would                                                               
consider herself a person with special competence in accounting.                                                                
                                                                                                                                
MS. WILLIAMSON replied yes.                                                                                                     
                                                                                                                                
4:09:50 PM                                                                                                                    
                                                                                                                                
CHAIR ANDERSON, upon  determining no one else  wished to testify,                                                               
announced that the public testimony was closed.                                                                                 
                                                                                                                                
MS. WILLIAMSON,  in response to  questions regarding  whether she                                                               
supported Amendment 2, expressed  her support for the legislation                                                               
and moving  forward with  regard to  conformity with  the Uniform                                                               
Accountancy Act.   Therefore, she  stated that she is  in support                                                               
of getting the legislation passed.                                                                                              
                                                                                                                                
REPRESENTATIVE  HAWKER, in  response to  Chair Anderson,  related                                                               
his opinion that Amendment 2 is not necessary.                                                                                  
                                                                                                                                
REPRESENTATIVE KOTT agreed that  Amendment 2 isn't necessary; and                                                               
therefore he said that he would oppose Amendment 2.                                                                             
                                                                                                                                
REPRESENTATIVE   LYNN  opined   that   SSHB   274  is   important                                                               
legislation.  However,  he said he would like to  err on the side                                                               
of caution  with Amendment  2, which he  didn't believe  does any                                                               
harm.   Therefore,  he said  he  maintained his  motion to  adopt                                                               
Amendment 2.                                                                                                                    
                                                                                                                                
REPRESENTATIVE CRAWFORD  noted his agreement  with Representative                                                               
Rokeberg's earlier comment that  this merely provides independent                                                               
accountants a  seat at the  table to know what  regulations might                                                               
result.   He opined that [Amendment  2] doesn't do any  harm, and                                                               
therefore he said he was in favor of Amendment 2.                                                                               
                                                                                                                                
REPRESENTATIVE ROKEBERG  reiterated his  belief that  Amendment 2                                                               
isn't necessary.                                                                                                                
                                                                                                                                
4:15:17 PM                                                                                                                    
                                                                                                                                
A roll  call vote was  taken.  Representatives  Lynn, Guttenberg,                                                               
and  Crawford voted  in favor  of  the adoption  of Amendment  2.                                                               
Representatives  LeDoux,  Kott,   Rokeberg,  and  Anderson  voted                                                               
against it.   Therefore, Amendment  2 failed  to be adopted  by a                                                               
vote of 3-4.                                                                                                                    
                                                                                                                                
REPRESENTATIVE KOTT moved to report  SSHB 274, as amended, out of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal  notes.   There being  no objection,  CSSSHB 274(L&C)  was                                                               
reported from the House Labor and Commerce Standing Committee.                                                                  
                                                                                                                                
The committee took a brief at-ease at 4:17 p.m.                                                                                 
                                                                                                                                
HB 331-UNDERAGE MILITARY ON LICENSED PREMISES                                                                                 
                                                                                                                                
CHAIR ANDERSON announced  that the final order  of business would                                                               
be HOUSE  BILL NO.  331, "An  Act relating  to access  by persons                                                               
under  21 years  of age  to premises  licensed to  sell alcoholic                                                               
beverages as clubs."                                                                                                            
                                                                                                                                
4:18:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JIM  ELKINS, Alaska State Legislature,  sponsor of                                                               
HB 331,  began by pointing  out that the committee  packet should                                                               
include a title amendment.                                                                                                      
                                                                                                                                
4:18:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CRAWFORD moved that  the committee adopt Amendment                                                               
1, which read [original punctuation provided]:                                                                                  
                                                                                                                                
     Page 1 delete lines 1 and 2 and insert:                                                                                    
     "An Act  relating to access  by persons under  21 years                                                                    
     of age  that possess  a valid  active duty  military or                                                                    
     armed forces  identification card issued by  the United                                                                    
     States  Department  of  Defense or  the  United  States                                                                    
     Department of Homeland Security  to a premises licensed                                                                    
     to sell alcoholic beverages as clubs."                                                                                     
                                                                                                                                
REPRESENTATIVE  KOTT  objected  for   discussion  purposes.    He                                                               
pointed out that the legislation  could be amended further in the                                                               
Senate to  specify only 19 and  20 year olds.   Therefore, if the                                                               
intent  is  to  reach  a   younger  age,  perhaps  it  should  be                                                               
specified.                                                                                                                      
                                                                                                                                
REPRESENTATIVE ELKINS said  he found it hard to  believe that the                                                               
Senate would allow that.  He  highlighted that there are a number                                                               
of  17-year-olds  who  are  serving   today.    The  thought,  he                                                               
explained,  was  that  this   legislation  only  allows  underage                                                               
military to enter patriotic licensed clubs.                                                                                     
                                                                                                                                
REPRESENTATIVE LYNN  suggested that  perhaps those  with military                                                               
identification  cards   could  enter  [licensed   premises],  and                                                               
therefore it would include 17-year-olds.                                                                                        
                                                                                                                                
REPRESENTATIVE KOTT  indicated his agreement  with Representative                                                               
Lynn's suggestion.                                                                                                              
                                                                                                                                
4:21:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CRAWFORD pointed  out  that the  body  of HB  331                                                               
refers to "18, 19, or 20 years of age".                                                                                     
                                                                                                                                
REPRESENTATIVE  KOTT suggested  that  the  committee address  the                                                               
body of the legislation first and then conform the title to it.                                                                 
                                                                                                                                
REPRESENTATIVE  ROKEBERG  further  suggested  that  such  changes                                                               
should be conceptual.                                                                                                           
                                                                                                                                
REPRESENTATIVE CRAWFORD withdrew Amendment 1.                                                                                   
                                                                                                                                
JIM VAN  HORN, Staff to  Representative Jim Elkins,  Alaska State                                                               
Legislature,  paraphrased  from  the  following  written  sponsor                                                               
statement:                                                                                                                      
                                                                                                                                
     House  Bill 331  is  a simple,  single  page bill  that                                                                    
     amends  AS   04.11.110(g)  by  authorizing   access  by                                                                    
     persons  under 21  years of  age, who  possess a  valid                                                                    
     military  active duty  ID card,  to  a club's  licensed                                                                    
     premises  without  specific  authorization of  the  ABC                                                                    
     board in certain circumstances.                                                                                            
                                                                                                                                
     Under present  state law, persons  under the age  of 21                                                                    
     cannot  be  on  premises  licensed  to  sell  alcoholic                                                                    
     beverages   unless   a   parent   or   legal   guardian                                                                    
     accompanies them.   At the same time,  it is recognized                                                                    
     that the  Federal Government is  the legal  guardian of                                                                    
     those active duty personnel under the age of 21.                                                                           
                                                                                                                                
     All active  duty personnel are eligible  for membership                                                                    
     in veteran's  organizations, including those  under the                                                                    
     age of 21.   Current law causes a dilemma  to the under                                                                    
        age person.  Here they are, eligible to join an                                                                         
     organization, but unable to go to the meetings because                                                                     
     they are under age.                                                                                                        
                                                                                                                                
     This legislation  will in no way  allow the consumption                                                                    
     of alcoholic beverages  by persons under the  age of 21                                                                    
     in licensed  clubs.  It  will allow active  duty people                                                                    
     under 21  to avail  themselves of the  club's amenities                                                                    
     such as television, pool table, lounge, etc.                                                                               
                                                                                                                                
4:24:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KOTT inquired  as to  the current  description of                                                               
the   utilization  of   the  various   clubs   on  the   military                                                               
installations.                                                                                                                  
                                                                                                                                
MR. VAN  HORN related  his understanding  that [those  carrying a                                                               
valid military active duty card]  can enter the clubs, but cannot                                                               
consume alcoholic beverages.   He opined that  the military clubs                                                               
have  tightened  [the  rules]  relating  to  the  consumption  of                                                               
alcohol by active duty personnel.                                                                                               
                                                                                                                                
4:25:42 PM                                                                                                                    
                                                                                                                                
CHAIR ANDERSON surmised then that  the sponsor's understanding is                                                               
that 18 to 20-year-olds won't be drinking in these facilities.                                                                  
                                                                                                                                
4:26:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ELKINS  interjected that this  legislation doesn't                                                               
grant the  clubs [located on  military facilities]  the authority                                                               
to serve underage individuals and  if the club did serve underage                                                               
individuals,  it  would face  the  same  liability as  any  other                                                               
facility.                                                                                                                       
                                                                                                                                
4:27:06 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROKEBERG  expressed concern with regard  to what a                                                               
"patriotic organization licensed as a club" is.                                                                             
                                                                                                                                
MR.  VAN HORN  pointed  out that  AS  04.11.110(b) specified  the                                                               
definition of a club license,  which specifies that any veterans'                                                               
organization is a patriotic organization.                                                                                       
                                                                                                                                
REPRESENTATIVE LEDOUX  asked if only veterans'  organizations are                                                               
considered patriotic  organizations.   She asked  specifically if                                                               
patriotic  organizations could  include organizations  other than                                                               
veterans' organizations.                                                                                                        
                                                                                                                                
4:29:12 PM                                                                                                                    
                                                                                                                                
MR.  VAN HORN  explained  that for  purposes  of licensing,  only                                                               
veterans' organizations are considered patriotic.                                                                               
                                                                                                                                
REPRESENTATIVE  KOTT moved  that  the  committee adopt  Amendment                                                               
[2], as follows:                                                                                                                
                                                                                                                                
     Page 1, line 11:                                                                                                           
          Delete "is 18, 19, 20 years of age and"                                                                           
                                                                                                                                
     Page 1, lines 1 and 2:                                                                                                     
          Delete "An Act relating to access by persons                                                                        
       under 21 years of age to premises licensed to sell                                                                     
     alcoholic beverages as clubs."                                                                                           
          Insert "An Act relating to access by persons                                                                      
     possessing  a  valid  active  duty  military  or  armed                                                                  
     forces identification card  issued by [insert entities]                                                                  
     to premises licensed to sell."                                                                                           
                                                                                                                                
4:30:48 PM                                                                                                                    
                                                                                                                                
CHAIR ANDERSON objected for discussion purposes.                                                                                
                                                                                                                                
REPRESENTATIVE LYNN  commented that  this does not  include wives                                                               
of military personnel.                                                                                                          
                                                                                                                                
4:31:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KOTT  stated that Amendment 2  captures the intent                                                               
of the sponsor.                                                                                                                 
                                                                                                                                
CHAIR ANDERSON  commented that  a "valid  military identification                                                               
card"  represents  a  son,  daughter, or  spouse,  and  does  not                                                               
require further definition.                                                                                                     
                                                                                                                                
REPRESENTATIVE ELKINS stated  that in regard to the  title of the                                                               
bill, he  would like it  to read: "An  Act relating to  access by                                                               
military  personnel  under  21  years   of  age  to  a  patriotic                                                               
organization licensed to sell alcoholic beverages as clubs."                                                                    
                                                                                                                                
4:33:42 PM                                                                                                                    
                                                                                                                                
CHAIR ANDERSON,  providing clarification,  stated that  the first                                                               
part of  Amendment 2, which  deletes "is 18,  19, or 20  years of                                                           
age and", would  be maintained and a title amendment  in the vein                                                           
specified will be requested from Legislative Legal Services.                                                                    
                                                                                                                                
[Amendment 2 was treated as adopted.]                                                                                           
                                                                                                                                
4:34:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LYNN   expressed  his  strong  support   for  the                                                               
legislation,  and stated  his feeling  that active  duty military                                                               
personnel are  adults and should  be treated  as such.   He added                                                               
that  in his  opinion, military  personnel should  be given  even                                                               
broader privileges, good or bad.                                                                                                
                                                                                                                                
REPRESENTATIVE KOTT said " ...  I agree with Representative Lynn,                                                               
but  with  the  federal  restrictions   that  we  currently  have                                                               
governing these individuals,  I think it would be  very tough for                                                               
us to do it, independent of them making changes."                                                                               
                                                                                                                                
4:36:37 PM                                                                                                                    
                                                                                                                                
DOUG GRIFFIN,  Director, Alcoholic  Beverage Control  Board ("ABC                                                               
Board"), Department of  Public Safety, stated that  the ABC Board                                                               
deals with this  issue often, adding that  American Legion Posts,                                                               
Auxiliary  Posts  and  Veterans   of  Foreign  Wars  [Posts]  are                                                               
considered  "patriotic  organizations"   that  qualify  for  club                                                               
liquor licenses.  He added that  the only concern he has would be                                                               
the  potential  for putting  the  bartenders  in "very  difficult                                                               
situations," because  once the  underage person  is in  the door,                                                               
there is the potential  to be served alcohol.  He  went on to say                                                               
that this type  of license can be very difficult  to regulate and                                                               
therefore  he  characterized this  as  a  "policy call"  for  the                                                               
legislature.                                                                                                                    
                                                                                                                                
REPRESENTATIVE KOTT stated that  the veterans' organizations have                                                               
expressed support for  the bill, and they stand to  lose a lot if                                                               
they are not diligent in checking identification.                                                                               
                                                                                                                                
REPRESENTATIVE ROKEBERG  asked if  underage, those under  age 21,                                                               
active duty  personnel on  a military base  are allowed  to drink                                                               
alcohol.                                                                                                                        
                                                                                                                                
MR.  GRIFFIN   replied  that   the  ABC   Board  does   not  have                                                               
jurisdiction on military bases, adding  that it may vary from one                                                               
military base  to another.   He stated  that in general  he feels                                                               
that the policy is to not serve persons under 21.                                                                               
                                                                                                                                
4:41:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ELKINS  commented  that  to  his  knowledge,  the                                                               
military bases conform to state law.                                                                                            
                                                                                                                                
REPRESENTATIVE  KOTT,   in  response   to  comments   from  Chair                                                               
Anderson, said  " ... I'm almost  100 percent sure that  there is                                                               
no  military  establishment  in  this  state  that  allows  their                                                               
personnel to  acquire alcohol under the  age of 21 ..."   He went                                                               
on  to say  that while  he is  unaware of  any underage  drinking                                                               
establishments, there  are clubs  that allow underage  persons to                                                               
be in the club during certain hours.                                                                                            
                                                                                                                                
MR. VAN  HORN explained  to the  committee that  this legislation                                                               
was drafted  in response to  situations involving  visiting ships                                                               
that  have underage  personnel  on board  who  cannot enter  into                                                               
these clubs for food.                                                                                                           
                                                                                                                                
4:45:32 PM                                                                                                                    
                                                                                                                                
DEAN HILL,  American Legion,  stated that  the bartenders  at the                                                               
American Legion and Veterans of  Foreign Wars [Posts] are trained                                                               
to  check  identification  and membership  cards  because  it  is                                                               
against the law to  sell a drink to a non-member.   He added that                                                               
the  change  will  allow members  to  sponsor  visiting  military                                                               
personnel so  that they  can enter the  club, and  the bartenders                                                               
will check the identification cards before serving them.                                                                        
                                                                                                                                
4:47:46 PM                                                                                                                    
                                                                                                                                
RICHARD SMITH,  Post Commander, American Legion  - Seward, stated                                                               
that he is pleased with [HB  331].  He highlighted the difficulty                                                               
with only being able to invite  part of a ship's personnel to the                                                               
local American Legion.                                                                                                          
                                                                                                                                
4:48:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LYNN  moved to report  HB 331, as amended,  out of                                                               
committee  with individual  recommendations and  the accompanying                                                               
zero fiscal notes.   There being no objection,  CSHB 331(L&C) was                                                               
reported from the House Labor and Commerce Standing Committee.                                                                  
                                                                                                                                
4:49:39 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Labor and Commerce Standing Committee meeting was adjourned at                                                                  
4:49:43 PM.                                                                                                                   
                                                                                                                                
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