01/23/2001 01:30 PM Senate L&C

            SB  10-EXTENDED BOARD OF PUBLIC ACCOUNTANCY                                                                     
                                                                                                                                
CHAIRMAN PHILLIPS announced SB 10 to be up for consideration.                                                                   
                                                                                                                                
SENATOR THERRIAULT  noted  there were several  letters of support  -                                                            
one  from  the  Alaska  Society  of  Certified  Public  Accountants                                                             
[indisc].                                                                                                                       
                                                                                                                                
MS.   CATHERINE  REARDON,   Director,   Division   of  Occupational                                                             
Licensing, supported SB  10, the extension of the Board of Certified                                                            
Public  Accountants  and  the accompanying  $0  fiscal  note,  which                                                            
explains  there is an expense  to licensing  accountants and  having                                                            
the Board  function, but  that the money is  already built  into the                                                            
budget.                                                                                                                         
                                                                                                                                
Several  recommendations in  the audit were  related to regulations                                                             
adopted by the  Board and the Division's response  on the final page                                                            
of the audit was prepared  in concurrence with the Board Chairman on                                                            
those issues.                                                                                                                   
                                                                                                                                
Regarding recommendation  three, that appointments  to the Board are                                                            
made  in a timely  manner,  Ms. Reardon  commented that  it was  the                                                            
Governor's intent  to achieve that with all his board  appointments.                                                            
                                                                                                                                
MS. PAT  DAVIDSON said  they made three  recommendations to  improve                                                            
areas within the  Board of Public Accountancy.  She  stated that she                                                            
is a CPA and the auditors  in her office are either licensed CPAs or                                                            
working to  attain licensure.  As  a result, she said, they  are not                                                            
independent with  respect to this Board.  But she  thought it was an                                                            
appearance issue, not one in fact.                                                                                              
                                                                                                                                
The  Board  designates  certain  types  of continuing  professional                                                             
education if you are going  to be the supervising auditor that signs                                                            
off  on peoples'  experience.    Legislative  auditors  thought  the                                                            
distinction  was inappropriate  and  saw the  Board  setting up  two                                                            
tiers of CPAs, Ms. Davidson  said.  A general practitioner in public                                                            
practice isn't required  to have that higher threshold of continuing                                                            
professional  education.   This recommendation  was  proposed  to be                                                            
dealt with in  regulation, so they will monitor the  Board to see if                                                            
the changes are made.                                                                                                           
                                                                                                                                
MS. DAVIDSON  said the second recommendation  had to do with  taking                                                            
due care in licensing  professionals.  The auditors  found that some                                                            
of the CPAs signing  off experience for others hadn't  been licensed                                                            
for the full  two years they were  attesting to.  They directed  the                                                            
Board to look at their procedures.                                                                                              
                                                                                                                                
MS. DAVIDSON  said that another recommendation  asked the  Office of                                                            
the Governor to make appointments in a timely fashion.                                                                          
                                                                                                                                
Number 2160                                                                                                                     
                                                                                                                                
SENATOR  TORGERSON   moved  to  pass  SB  10  from  committee   with                                                            
accompanying  fiscal notes with individual  recommendations.   There                                                            
were no objections and it was so ordered.