04/13/2010 02:30 PM Senate FINANCE

HOUSE BILL NO. 315                                                                                                            
                                                                                                                                
     "An Act relating to public accounting; and providing                                                                       
     for an effective date."                                                                                                    
                                                                                                                                
Co-Chair Hoffman MOVED to ADOPT  the SCS for HB 315, labeled                                                                    
26-LS1380\R, Bannister,  4/12/10, as  the work  draft before                                                                    
the committee.                                                                                                                  
                                                                                                                                
Co-Chair Stedman OBJECTED.                                                                                                      
                                                                                                                                
Co-Chair  Stedman  explained the  sections  of  the SCS.  In                                                                    
Sections  2  and 3,  the  SCS  adds an  executive  secretary                                                                    
position  to  the State  Board  of  Public Accountancy.  The                                                                    
board  is  currently  struggling   to  fulfill  its  mission                                                                    
because  of   insufficient  staff.  The  addition   of  this                                                                    
position will  enable the board  to perform its  duties more                                                                    
efficiently.  The position  will be  paid from  license fees                                                                    
and is supported by the Alaska Society of CPA's.                                                                                
                                                                                                                                
Co-Chair  Stedman WITHDREW  his  OBJECTION.  There being  NO                                                                    
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
JENNIFER   SENETTE,   STAFF,  REPRESENTATIVE   KURT   OLSON,                                                                    
SPONSOR, explained that the SCS  for HB 315 was crafted with                                                                    
the help of  the Alaska Society of CPA's and  with the State                                                                    
Board of  Public Accountancy and  enjoys their  support. She                                                                    
knew of  no opposition  to the  bill. It  was passed  in the                                                                    
other  body unanimously.  Some version  of this  legislation                                                                    
has been passed  in 45 states. The  bill represents Alaska's                                                                    
effort  to bring  accounting standards  into  line with  the                                                                    
rest  of  the  nation  and  keep  Alaskan  CPA's  nationally                                                                    
competetive.                                                                                                                    
                                                                                                                                
Ms.  Senette reported  that  the  bill accomplishes  several                                                                    
things. It gives  CPA's mobility, the ability  of a licensee                                                                    
to  gain  a  practice  privilege   outside  of  his  or  her                                                                    
principle  place of  business  without additional  licensing                                                                    
and fees.  An Alaskan CPA would  be able to practice  out of                                                                    
state and vice versa.                                                                                                           
                                                                                                                                
Ms.  Senette  related  that the  bill  provides  for  simple                                                                    
majority  ownership. Under  current law,  Alaskan accounting                                                                    
firms  must be  owned 100  percent by  CPA's. Other  non-CPA                                                                    
professionals would  be able to  have a  minority ownership.                                                                    
The intent is to attract and retain qualified individuals.                                                                      
                                                                                                                                
3:04:49 PM                                                                                                                    
                                                                                                                                
Ms. Senette described  the third goal of the  bill, which is                                                                    
to  enhance  the  board's  ability  to  protect  the  public                                                                    
interest. The  board will  have automatic  jurisdiction over                                                                    
all  CPA's   practicing  in  the   state  and   address  any                                                                    
violations of its standards.                                                                                                    
                                                                                                                                
Ms. Senette  said the  bill also  provides for  an executive                                                                    
secretary  position to  the board  in order  to enhance  the                                                                    
board's ability  to perform its crucial  functions. The cost                                                                    
of the  position will  be borne through  an increase  in CPA                                                                    
licensing fees.                                                                                                                 
                                                                                                                                
Ms. Senette pointed out that a board member was present.                                                                        
                                                                                                                                
Co-Chair  Stedman  noted  one  zero  fiscal  note  from  the                                                                    
Department of Commerce, Community and Economic Development.                                                                     
                                                                                                                                
3:07:29 PM                                                                                                                    
                                                                                                                                
MAX  MERTZ,  ALASKA  BOARD OF  PUBLIC  ACCOUNTANCY,  JUNEAU,                                                                    
introduced himself.                                                                                                             
                                                                                                                                
Senator Egan noted that Mr. Mertz' firm did his taxes.                                                                          
                                                                                                                                
Mr. Mertz related  his six-year experience on  the board. He                                                                    
shared the  difficulty of the  board's ability to  carry out                                                                    
its mission.  The bill brings to  the table the notion  of a                                                                    
practice privilege  which will  enhance the  board's ability                                                                    
to  govern.  He  agreed  with  the  need  for  an  executive                                                                    
secretary.                                                                                                                      
                                                                                                                                
3:11:08 PM                                                                                                                    
                                                                                                                                
JULIE OLSON, PRESIDENT, ALASKA  BOARD OF PUBLIC ACCOUNTANCY,                                                                    
JUNEAU, echoed Mr. Mertz's comments of support.                                                                                 
                                                                                                                                
Senator Olson  asked if  the bill would  have any  effect on                                                                    
smaller businesses.                                                                                                             
                                                                                                                                
Ms. Senette  reported receiving only positive  feedback from                                                                    
firms of all  sizes.  She thanked the  committee for hearing                                                                    
the bill.                                                                                                                       
                                                                                                                                
HB  315  was  heard  and   HELD  in  Committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
3:13:13 PM