SENATE STATE AFFAIRS COMMITTEE February 25, 1997 3:35 P.M. MEMBERS PRESENT Senator Lyda Green, Chairman Senator Jerry Ward, Vice-Chairman Senator Mike Miller MEMBERS ABSENT Senator Jerry Mackie Senator Jim Duncan COMMITTEE CALENDAR SENATE BILL NO. 77 "An Act relating to the Alaska Day of Prayer." - MOVED SB 77 OUT OF COMMITTEE CS FOR HOUSE BILL NO. 2(FIN) "An Act allowing, for the purposes of permanent fund dividend eligibility, an individual to accompany, as the spouse or minor or disabled dependent, another eligible resident who is absent for any of the following reasons: vocational, professional, or other specific education for which a comparable program is not reasonably available in the state; secondary or postsecondary education; military service; medical treatment; service in the Congress or in the peace corps; to care for the individual's terminally ill parent, spouse, sibling, child, or stepchild; for up to 220 days to settle the estate of the individual's deceased parent, spouse, sibling, child, or stepchild; to care for a parent, spouse, sibling, child, or stepchild with a critical life-threatening illness whose treatment plan, as recommended by the attending physician, requires travel outside of the state for treatment at a medical specialty complex; or other reasons that the commissioner of revenue may establish by regulation; requiring, for the purposes of permanent fund dividend eligibility, a state resident to have the intent to remain indefinitely; relating to the eligibility for 1992, 1993, 1994, 1995, 1996, and 1997 permanent fund dividends of certain spouses and dependents of eligible applicants; and providing for an effective date." - MOVED CSHB2(FIN) OUT OF COMMITTEE CS FOR SENATE BILL NO. 75(L&C) "An Act relating to the regulation of accountants; and providing for an effective date." - MOVED CSSB75(STA) OUT OF COMMITTEE SENATE BILL NO. 4 "An Act relating, for purposes of eligibility for a permanent fund dividend, to an absence from the state while on an unpaid sabbatical under the longevity bonus program; and providing for an effective date." - SCHEDULED, BUT NOT HEARD PREVIOUS SENATE COMMITTEE ACTION SB 77 - No previous action to consider. HB 2 - See State Affairs Committee minutes dated 2/20/97. SB 75 - See Labor and Commerce Committee minutes dated 2/11/97. SB 4 - See State Affairs Committee minutes dated 2/20/97. WITNESS REGISTER Mr. Joe Ambrose, Staff Senator Robin Taylor State Capitol Bldg. Juneau, AK 99811-1182 POSITION STATEMENT: Commented on SB 77. Mr. Scott Hamann P.O. Box 934 Kenai, AK 99611 POSITION STATEMENT: Supported SB 77. Ms. Virginia Phillips 404 Lake St., 2-D Sitka, AK 99835 POSITION STATEMENT: Supported SB 77. Mr. Tim Benintendi, Staff Senator Tim Kelly State Capitol Bldg. Juneau, AK 99811-1182 POSITION STATEMENT: Read sponsor statement to SB 75. Mr. Charles Griffin P.O. Box 670 Palmer, AK 99645 POSITION STATEMENT: Supported SB 75. Mr. Brad Shaffer 429 Katlian St. Sitka, AK 99835 POSITION STATEMENT: Supported SB 75. Ms. 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 75. ACTION NARRATIVE TAPE 97-5, SIDE A Number 001  SB 77 ALASKA DAY OF PRAYER CHAIRMAN GREEN called the Senate State Affairs Committee to order at 3:35 p.m. and brought up SB 77 as the first order of business. MR. JOE AMBROSE, staff to Senator Taylor, prime sponsor, said the first Thursday in May is the national day of prayer as recognized by Congress. Passage of SB 77 would establish the first Thursday of May as a corresponding state day of prayer in Alaska. He quoted Thomas Jefferson who said, "A man's natural right to religious expression is not in opposition to his political function." Number 47 MR. SCOTT HAMANN said he strongly supported this bill. MS. VIRGINIA PHILLIPS testified that she supported SB 77. Many states have such legislation and other states are considering it. Only concerted prayer can overcome the problems of the Alaskan elderly, multiple abortions, low high-school graduation rates, violence, and lack of funds and help us to enter the new century with pride. Number 107 SENATOR MILLER moved to pass SB 77 from committee with individual recommendations. There were no objections and it was so ordered. HB 2 PERMANENT FUND DIVIDEND ELIGIBILITY  CHAIRMAN GREEN announced CS HB 2(FIN) to be up for consideratio SENATOR WARD moved to pass CSHB 2(FIN) from committee with individual recommendations and attached fiscal notes. There were no objections and it was so ordered. SB 75 REGULATION OF ACCOUNTANTS  CHAIRMAN GREEN announced SB 75 to be up for consideration. SENATOR MILLER moved to adopt the Lauterbach 2/18/97 B version of SB 75. There were no objections and it was so ordered. Number 140 MR. TIM BENINTENDI, staff to Senator Kelly, said that SB 75 would change the application criteria for those taking the Alaska CPA examination which is given every May and November. It would not change the test itself, or the licensing criteria. SB 75 is needed because there have been dramatic increases in the number of foreign non-resident applicants who have recently come to Alaska to take the test. Many of those applicants have no accounting background and do not live or practice in Alaska. Concerns have arisen for the integrity of Alaska's exam process and for the security of the exam itself. Currently Alaska's criteria for the application process is the lowest in the country and merely requires a baccalaureate degree in any field. MR. BENINTENDI referenced last year's numbers for applicants: 75 - 100 test takers compared to 507 in this past November alone. The costs of exams are designed to break even. SB 75 requires a minimum of academic course work in college level accounting, one year of public accounting experience under the direct supervision of a CPA, or the near-completion of a degree in accounting. MR. BENINTENDI said that Section 2 of the bill addresses an unrelated issue but it is an issue that must be resolved in statute. Section 2 allows the professional use of a designation "EA" by enrolled agents, those unlicensed accountants or tax practitioners enrolled by the IRS to engage in tax-related business. SB 75 is supported by the State Board of Accountancy, the Society of CPAs, and the Alaska Society of Independent Accountants. Number 195 SENATOR GREEN asked how the changes will affect foreign applicants. MR. BENINTENDI explained most foreign applicants don't have a background in accounting. Instituting the new requirements will remove casual applicants from the market. Number 212 MR. CHUCK GRIFFIN, a Palmer CPA, said he has served on the State Board of Public Accountancy for seven years. As a result of the burden placed on the Board of Accountancy and the administrative staff at the Division of Occupational Licensing, he requested this bill from Senator Kelly. He supported Mr. Benintendi's testimony and said no one wants to take anything away from any foreign candidates who have passed parts of the examination under prior standards. Those applicants would be able to continue the testing process. MR. BRAD SHAFFER said he supported SB 75 as amended. Number 266 MS CATHERINE REARDON, Director, Division of Occupational Licensing, said she supported SB 75. SENATOR WARD moved to pass CSSB 75(STA) from committee with individual recommendations with the accompanying $0 fiscal notes. There were no objections and it was so ordered. CHAIRMAN GREEN adjourned the meeting at 3:53 p.m.