03/23/2009 01:30 PM House FINANCE

HOUSE BILL NO. 78                                                                                                             
                                                                                                                                
     "An Act extending  the termination date of  the Board of                                                                   
     Public  Accountancy;  and  providing  for  an  effective                                                                   
     date."                                                                                                                     
                                                                                                                                
Mr. Jackson explained the Board  of Public Accountancy shares                                                                   
some  of  the   same  issues  as  the  Board   of  Veterinary                                                                   
Examiners.  The  big difference is that there  is a four-year                                                                   
extension for the Board of Public  Accountancy as recommended                                                                   
by Legislative Audit.                                                                                                           
                                                                                                                                
Ms. Davidson  informed the Committee that  under professional                                                                   
auditing  standards one  of the  most  important standard  is                                                                   
that auditors  be independent  of the  organization they  are                                                                   
auditing.    She  explained that  Legislative  Audit  is  not                                                                   
independent with respect to the  Board of Public Accountancy.                                                                   
She  clarified that  a consultant  was hired  to conduct  the                                                                   
audit.   The contract  required that  the consultant  perform                                                                   
the  audit  according  to  the   same  statutory  areas  that                                                                   
Legislative Audit would have used.                                                                                              
                                                                                                                                
Ms. Davidson read the conclusion of the audit:                                                                                  
                                                                                                                                
     In  recognition  of the  board's continuing  efforts  to                                                                   
     utilize   the   services   provided  by   the   National                                                                   
     Association  of  State  Boards of  Accountancy  and  the                                                                   
     potential for  additional statutory regulatory  changes,                                                                   
     the recommendation was for  a four-year extension rather                                                                   
     than the typical eight-year.                                                                                               
                                                                                                                                
Ms.  Davidson  shared  the  report's  three  recommendations:                                                                   
board  membership be  filled in  a more  timely manner,  fees                                                                   
need to  be re-evaluated  with the  intent of reducing  them,                                                                   
and the Investigation  Section should implement  an effective                                                                   
case tracking system.                                                                                                           
                                                                                                                                
Ms.  Davidson gave  an example  of problems  within the  case                                                                   
management system.   This  recommendation would  address case                                                                   
management systems in all occupational boards.                                                                                  
                                                                                                                                
1:53:24 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stoltze summarized  that the  shorter extension  is                                                                   
because the  board is  looking at  outsourcing some  of their                                                                   
services and restructuring.                                                                                                     
                                                                                                                                
Co-Chair Stoltze  noted a fiscal note from  the Department of                                                                   
Commerce,  Community and  Economic Development.   He  pointed                                                                   
out that costs were paid by activities,  licensees, and other                                                                   
fees.                                                                                                                           
                                                                                                                                
1:54:57 PM                                                                                                                    
                                                                                                                                
Co-Chair Hawker MOVED  to REPORT HB 78 out  of Committee with                                                                   
individual recommendations and  the accompanying fiscal note.                                                                   
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
HB  78  was  REPORTED  out of  Committee  with  a  "do  pass"                                                                   
recommendation and  with fiscal note #1 by  the Department of                                                                   
Commerce, Community and Economic Development.