03/22/2011 01:30 PM House FINANCE

HOUSE BILL NO. 147                                                                                                            
                                                                                                                                
     "An Act setting a monthly salary for the executive                                                                         
     secretary of the Board of Public Accountancy."                                                                             
                                                                                                                                
4:07:14 PM                                                                                                                    
                                                                                                                                
JENNIFER   SENETTE,   STAFF,  REPRESENTATIVE   KURT   OLSON,                                                                    
SPONSOR, described  the legislation as  straightforward. She                                                                    
referred  to an  accounting bill  passed unanimously  by the                                                                    
legislature  the  prior  session,   which  had  created  the                                                                    
position of the  executive secretary of the  Board of Public                                                                    
Accountancy.  The  creation  of   the  position  was  widely                                                                    
supported  in  the  legislature  and  throughout  the  state                                                                    
because of  the recognition that the  all-volunteer Board of                                                                    
Public  Accountancy  was   understaffed  and  struggling  to                                                                    
fulfill  its  mission.  There  was  broad  support  for  the                                                                    
board's  mission  of  protecting the  public  interest;  the                                                                    
board   had   jurisdiction   over   all   certified   public                                                                    
accountants  (CPAs)  practicing  in   the  state  and  could                                                                    
address any violation of its standards.                                                                                         
                                                                                                                                
Ms. Senette  continued that after  the position  was created                                                                    
by the  legislation, the Department of  Administration (DOA)                                                                    
came out as  usual with its draft  salary determination; the                                                                    
position was placed at a Range  19. The sponsor did not feel                                                                    
that a Range  19 would attract a qualified  candidate to the                                                                    
position,  and would  leave  the board  in  the position  of                                                                    
lacking  an  administrator  with the  desired  expertise  to                                                                    
fulfill the board's mission.                                                                                                    
                                                                                                                                
Ms. Senette added that the  fiscal note in the previous bill                                                                    
had  called for  the  position to  be at  a  Range 23;  CPAs                                                                    
around  the state,  along  with the  state  Board of  Public                                                                    
Accountancy and  the Alaska Society  of CPAs,  had supported                                                                    
the  position  at  Range  23.   She  stressed  that  it  was                                                                    
particularly  important  that  the Alaska  Society  of  CPAs                                                                    
supported  the   range  level,  because   that  organization                                                                    
represented Alaska  CPAs, and the  salary would come  out of                                                                    
their licensing  fees. She underlined  that the  state would                                                                    
not pay for the position's salary.                                                                                              
                                                                                                                                
Ms.  Senette  detailed  that  Range  19  paid  approximately                                                                    
$58,000 per  year. She noted  that a recent graduate  in the                                                                    
field without  experience could easily make  $60,000. On the                                                                    
other hand, a  Range 23 began at $77,000.  She described the                                                                    
current  bill  as  a legislative  fix  for  the  discrepancy                                                                    
between  pay   ranges.  She  stressed  that   there  was  no                                                                    
opposition  and that  DOA had  signaled  its willingness  to                                                                    
implement  the  salary  range that  the  legislature  deemed                                                                    
appropriate.                                                                                                                    
                                                                                                                                
4:11:16 PM                                                                                                                    
                                                                                                                                
Representative Wilson  verified that  the cost to  the state                                                                    
was nothing and that the money would come out of CPA fees.                                                                      
                                                                                                                                
Ms. Senette replied in the affirmative.                                                                                         
                                                                                                                                
DON   RULIEN,  CERTIFIED   PUBLIC  ACCOUNTANT   and  MEMBER,                                                                    
LEGISLATIVE  COMMITTEE, ALASKA  SOCIETY OF  CERTIFIED PUBLIC                                                                    
ACCOUNTANTS,  ANCHORAGE   (via  teleconference),   spoke  in                                                                    
support of  the legislation. He informed  the committee that                                                                    
he had  been on the board  of directors for many  years; the                                                                    
committee believed it  was essential that the  pay scale for                                                                    
the position be  at Range 23 so that the  board could hire a                                                                    
person with the appropriate experience and expertise.                                                                           
                                                                                                                                
Mr.  Rulien noted  that the  board had  struggled with  past                                                                    
executive administrators  due to their lack  of expertise in                                                                    
general  accounting matters  as  well as  in more  technical                                                                    
matters.  Past executive  directors were  shared with  other                                                                    
boards, which  put the Board  of Public Accountancy  at risk                                                                    
for missing important  issues. He pointed out  that the bill                                                                    
had a  zero fiscal note and  that the CPAs would  fully fund                                                                    
the position out of licensing fees they paid to the state.                                                                      
                                                                                                                                
4:14:22 PM                                                                                                                    
                                                                                                                                
Vice-chair Fairclough CLOSED public testimony.                                                                                  
                                                                                                                                
Representative Gara  commented that referring to  a Range 19                                                                    
position  as  "entry  level"  had  been  upsetting  to  some                                                                    
legislative staffers, whom he believed felt the same way.                                                                       
                                                                                                                                
Representative  Wilson  MOVED  to   report  HB  147  out  of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal  note. There being NO  OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
HB  147 was  REPORTED  out  of Committee  with  a "do  pass"                                                                    
recommendation  and with  previously published  fiscal note:                                                                    
FN 1 (CED).                                                                                                                     
                                                                                                                                
4:16:23 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
4:18:02 PM                                                                                                                    
RECONVENED