Legislature(2021 - 2022)BELTZ 105 (TSBldg)
05/14/2021 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HB126 | |
| SB131 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 126 | TELECONFERENCED | |
| + | SB 131 | TELECONFERENCED | |
| += | SB 41 | TELECONFERENCED | |
| += | SB 38 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
HB 126-EXTEND BOARD OF PUBLIC ACCOUNTANCY
1:31:45 PM
CHAIR COSTELLO announced the consideration of HOUSE BILL NO. 126
"An Act extending the termination date of the Board of Public
Accountancy; and providing for an effective date."
1:32:01 PM
REPRESENTATIVE STEVE THOMPSON, Alaska State Legislature, Juneau,
Alaska, introduced HB 126 paraphrasing the following sponsor
statement:
HB 126 extends the termination date for the Board of
Public Accountancy for eight years until June 30,
2029.
Legislative Audit conducted their review of this board
and concluded that "?the board served the public's
interest by conducting meetings in accordance with
state laws, amending certain regulations to improve
the public accountancy occupation, and effectively
licensing and regulating certified public accountants
and partnerships/corporations engaged in the practice
of public accountancy."
The Board of Public Accountancy consists of seven
members appointed by the Governor. Five members are
certified public accountants or public accountants,
and two members are public members.
Extending the Board of Public Accountancy is critical
in protecting the public interest by ensuring that
only qualified persons are licensed, and that
appropriate standards of competency and practice are
established and enforced.
REPRESENTATIVE THOMPSON disclosed that his wife is a CPA and
past member of the Board of Public Accountancy.
1:33:36 PM
KRIS CURTIS, Legislative Auditor, Division of Legislative Audit,
Alaska State Legislature, Juneau, Alaska, stated that the
Division of Legislative Audit conducted a sunset audit of the
Board of Public Accountancy the purpose of which was to
determine whether the board is serving the public's interest and
should be extended.
She reported that the audit concluded that the board served the
public's interest by conducting meetings in accordance with
state law, by amending certain regulations to improve the
occupation, and by effectively licensing and regulating
certified public accountants and those engaged in public
accountancy. The division recommends that the legislature extend
the board for 8 years, which is the maximum allowed by statute.
1:34:23 PM
MS. CURTIS directed attention to the standard licensing
statistics on page 5 of the audit [copies in members' packets].
She said the exhibit shows that as of January 2020, there were
1,320 active licenses and permits in the state. This is a 10
percent increase compared to the prior 2012 sunset audit. The
auditors found that the reason for the increase was that Alaska
is among the few states that does not require a Social Security
number for licensure. This resulted in the board receiving many
international applications.
She directed attention to the list of board revenues and
expenditures on page 7. As of the end of FY2019, the board had a
surplus of just more than $84,000. The schedule of fees is on
page 8.
MS. CURTIS said the audit recommends, on page 11, that the
Division of Corporations, Business, and Professional Licensing's
chief investigator ensure timely completion of investigations.
Auditors found that from July 2016 through January 2020, 101 or
40 percent of those cases were open for more than 180 days. A
review of five of those cases found that two had periods of
unjustified inactivity ranging from 64-219 days.
MS. CURTIS directed attention to the response to the audit on
page 21. She reported that the commissioner of the Department of
Commerce, Community, and Economic Development agreed with the
conclusions of the report except for the conclusion that 40
percent of investigations took over six months to complete. The
commissioner stated, "The Division of Corporations, Business,
and Professional Licensing has no control over how an
investigation will unfold or how long it will take, and it does
not have a policy that all investigations should be completed
within any specific timeframe." She highlighted that the
commissioner did authorize an additional investigative
supervisor to reduce caseloads.
1:36:32 PM
MS. CURTIS stated that the commissioner also took exception to
the conclusion that the use of technology had affected the
board's operations, arguing that the existing technology tools
have been successful for all the boards.
MS. CURTIS directed attention to the response from the chair of
the board that begins on page 25. The chair did not disagree
with the conclusions but did highlight a disagreement that the
board is having with the division about what constitutes
essential travel.
1:37:07 PM
CHAIR COSTELLO asked for the number of licensed CPAs in the
state.
MS. CURTIS answered that there are 1,118, including herself and
many of her staff.
CHAIR COSTELLO moved to invited testimony.
1:37:52 PM
LESLIE SCHMITZ, Chair, Board of Public Accountancy, Division of
Corporations, Business and Professional Licensing, Department of
Commerce, Community and Economic Development, Anchorage, Alaska,
stated that she was serving her eighth and final year on the
board. She thanked the Division of Legislative Audit for
recommending the 8-year extension for the board. She stated that
the board tries to be interactive with stakeholders, the public,
and licensees and attempts to stay active at the national level
to address issues that affect the profession. She reported that
the board also maintains ongoing projects to update its statutes
and regulations to stay current with national trends. On behalf
of the board, she thanked the committee for hearing HB 126.
1:39:03 PM
CHAIR COSTELLO opened public testimony on HB 126.
1:39:20 PM
CRISTA BURSON, President and CEO, Alaska Society of CPAs
(Alaska-CPA), Anchorage, Alaska, stated support for HB 126 and
extending the termination date for the Board of Public
Accountancy for the maximum eight years. She said this board
operates in the public's interest and provides appropriate
regulatory oversight of Alaska licensed CPAs. The board is
inclusive of all interested parties and it has a positive and
collaborative relationship with Alaska-CPA. She thanked the
committee for its consideration of the bill.
1:40:21 PM
CHAIR COSTELLO closed public testimony on HB 126. She asked Sara
Chambers to comment on the timeliness of investigations. She
offered her understanding that the board is not responsible for
the timing of an investigation once it starts.
1:41:03 PM
SARA CHAMBERS, Director, Division of Corporations, Business, and
Professional Licensing, Department of Commerce, Community and
Economic Development, Juneau, Alaska, stated that investigative
timeliness is the responsibility of the division investigators.
None of the cases Ms. Curtis mentioned related to board action.
Rather, they were delays that sometimes occur through the normal
investigative process such as life, health, and safety matters,
which receive priority above most other investigations for the
CPA Board. The concern she and Ms. Curtis discussed is that the
division is not adequately documenting the rationale for the
delays. That is not a board responsibility but it is a reporting
criterion of the audit.
CHAIR COSTELLO asked for the number of division investigators
the number of boards and commissions in the state.
MS. CHAMBERS answered that the division oversees 43 licensing
programs and it has 18 professional investigators. She noted
that some of the programs have multiple investigators working on
them and some programs, like the CPA Board, share one
investigator among several boards.
CHAIR COSTELLO asked if COVID-19 affected the timeliness of the
investigations.
MS. CHAMBERS said no; in fact, the efficiencies the division has
been working on over the last year have shortened the average
closure time for cases by 100 days.
1:45:14 PM
CHAIR COSTELLO asked her to provide information on the
timeliness of all the investigations the division undertakes.
MS. CHAMBERS agreed to run the report and forward it to the
committee as soon as possible.
1:45:49 PM
SENATOR GRAY-JACKSON moved to report HB 126, work order 32-
LS0429\A, from committee with individual recommendations and
attached fiscal note(s).
CHAIR COSTELLO found no objection and HB 126 was reported from
the Senate Labor and Commerce Committee.
1:46:15 PM
REPRESENTATIVE THOMPSON thanked the committee for its
consideration.
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