Legislature(1995 - 1996)
03/19/1996 01:32 PM Senate L&C
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SENATE LABOR AND COMMERCE COMMITTEE
March 19, 1996
1:32 P.M.
MEMBERS PRESENT
Senator Tim Kelly, Chairman
Senator John Torgerson, Vice Chairman
Senator Jim Duncan
Senator Judy Salo
MEMBERS ABSENT
Senator Mike Miller
COMMITTEE CALENDAR
SENATE BILL NO. 305
"An Act relating to the regulation of accountants; and amending the
effective date for sec. 6, ch. 62, SLA 1991."
SENATE BILL NO. 276
"An Act relating to the calculation of unemployment insurance
benefits; and providing for an effective date."
CS FOR SENATE BILL NO. 229(CRA)
"An Act relating to employment contributions and to the state
training and employment program; and providing for an effective
date."
PREVIOUS SENATE COMMITTEE ACTION
SB 305 - No previous action to consider.
SB 276 - See Labor and Commerce minutes dated 2/22/96 and 3/14/96.
SB 229 - See Community & Regional Affairs minutes dated 2/7/96,
2/12/96, 2/21/96, and 3/18/96.
See Labor & Commerce minutes dated 3/14/96.
WITNESS REGISTER
Chuck Griffin, Chairman
State Board of Public Accountants
P.O. Box 670
Palmer, AK 99645
POSITION STATEMENT: Supported SB 305.
Catherine Reardon, Director
Division of Occupational Licensing
Department of Commerce and Economic Development
P.O. Box 110806
Juneau, AK 99811-0806
POSITION STATEMENT: Supported SB 305 as amended.
Dwight Perkins, Special Assistant
Department of Labor
P.O. Box 33922
Juneau, AK 99801
POSITION STATEMENT: Supported SB 229 and SB 276.
Ron Torgerson
Division of Employment Security
Department of Labor
P.O. Box 25509
POSITION STATEMENT: Commented on SB 229 and SB 276.
ACTION NARRATIVE
TAPE 96-20, SIDE A
Number 001
SB 305 REGULATION OF ACCOUNTANTS
CHAIRMAN KELLY called the Senate Labor and Commerce Committee
meeting to order at 1:32 p.m. and announced SB 305 to be up for
consideration.
CHUCK GRIFFIN, Chairman of the State Board of Public Accountancy,
said SB 305 makes three changes in the Accountancy Act. One is to
defer and provide transition for the 150 hour education
requirement. This is mostly on behalf of the University community
whose students will be graduating in the next year or two and hope
to become licensed.
The second change would give the Board the statutory authority to
recognize for permit purposes limited liability companies which are
now permitted under AS10.50. There is now no provision to
recognize that entity for licensing.
The third change would provide a limited form of permissive
reciprocity for licensing CPA's who come from other states in the
form of a five in 10 rule reflecting examination and experience.
This will streamline the licensing process when these people move
to Alaska or are transferred by their firms.
He noted that two amendments are needed. In section one, dealing
with the reciprocity provision, currently reads "an applicant
passes a public accounting examination" and it should read "the
applicant has passed the uniform certified public accountants
examination." This conforms the title to the examination that is
referred to nationally and in our statutes, he said.
The other change is on page 10, the educational experience
requirement, where "in public accounting" needs to be deleted
because there is no requirement for a public accounting degree
which would not be uniformly awarded anyway.
Number 181
SENATOR KELLY asked why he wanted section 6 to take effect January
1, 2001 which is a ways from now. MR. GRIFFIN replied that they
are currently the 1991 Act which has an effective date of September
1, 1997 and they have received a number of requests from primarily
University students who feel that 1997 puts us ahead of the
national curve and, secondly, the 1991 Act didn't allow for any
transition whereby a person, if they had a degree prior to 1997,
could still qualify. He said the Department of Law said that only
the legislature can enact that provision; the Board couldn't adopt
any regulation to provide any transition or grandfathering.
SENATOR TORGERSON asked on page 9, line 25 regarding the definition
of a foreign limited liability company and he wanted to know why we
would identify them. MR. GRIFFIN replied that foreign under the
limit liability law does not mean outside the U.S.; it means an LLC
which is not directly domiciled in Alaska. They have had to deal
with the same provision with respect to professional corporations.
It is basically a form of interstate reciprocity.
SENATOR SALO moved on page 1, line 9 to change the term to the
uniform certified public accountant examination and on page 10,
lines 14 and 15 to delete the words "in public accounting."
CATHERINE REARDON, Division of Occupational Licensing, said that
the administration they supported the bill with the changing of the
wording.
There were no objections to the amendments and they were adopted.
SENATOR TORGERSON moved to pass CSSB 305 from committee with
individual recommendations. There were no objections and it was so
ordered.
SB 276 CALCULATION OF UNEMPLOYMT INS BENEFITS
SB 229 STATE TRAINING & EMPLOYMENT PROGRAM
SENATOR KELLY announced SB 276 and SB 229 to be up for
consideration.
DWIGHT PERKINS, Special Assistant, Department of Labor, supported
SB 229.
SENATOR KELLY said he wanted to combine the two bills under SB 229.
He said there had been some questions about restructuring the
insurance payments on the Unemployment Insurance Program to allow
the employee to pay a larger share of the proposed increase. He
noted there was a letter from the Department of Labor called the
Employer and Employee Contribution proposal which caps the weekly
benefit amount at $248.
MR. PERKINS discussed the letter for the committee. He said that
right now the current level based on 70% of the average annual
Alaska wage is $22,500. That equates to $212 per week for
unemployment. The proposal today increases the benefit by $2 for
every $250 increase in wage. The maximum unemployment would be
capped at $248 per week. He said this would be locked in statute,
not to be changed until some future date.
SENATOR KELLY remarked that the $212 in the original Governor's
bill had been replaced with the $248 minimum.
MR. PERKINS also commented on the step program saying that
originally the program would be institutionalized. There were
concerns with that in the Department of Labor and the Department of
Community and Regional Affairs and a two year sunset provision was
established. The amount of administrative expenses would be capped
to 20 percent of the total amount of the step dollars coming into
the program. That 20 percent would be less the agreement that the
Department of Labor has with the federal Office of Management and
Budget entitled Circular A87, Cost Principles for State and Local
Governments. That would be outside the cap.
MR. Perkins said they receive funds from the Alaska Human Resource
Investment Council, Community and Regional Affairs, Department of
Labor (non-resident hire report), Municipality of Anchorage and
Fairbanks (service delivery areas). All those cannot exceed 20
percent excluding the $250,000 in the Circular A87.
SENATOR KELLY remarked that that was a real cap of about 26 or 27
percent. MR. PERKINS agreed and said the Community and Regional
Affairs Committee also agree with these changes.
SENATOR KELLY remarked that this is a unique program and what makes
it work is the flexibility away from all of the federal
regulations.
MR. PERKINS explained there was another change regarding account
procedures for accuracy, efficiency, and to ensure compliance with
program requirements and generally accepted accounting principles.
MR. PERKINS said the administration supported merging these two
bills.
SENATOR TORGERSON asked if they were increasing the amount of money
made available in the step program by going to the 20/80.
RON TORGERSON, Department of Labor, replied that the amount the
employee pays out is increasing.
Number 340
SENATOR TORGERSON moved to combine the two bills. There were no
objections and it was so ordered.
SENATOR TORGERSON moved to pass CSSB 229 from committee with
individual recommendations. There were no objections and it was so
ordered.
SENATOR KELLY adjourned the meeting at 1:55 p.m.
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