02/25/1997 03:35 PM Senate STA

                SB  75 REGULATION OF ACCOUNTANTS                              
                                                                              
  CHAIRMAN GREEN  announced  SB 75  to be up for consideration.                
                                                                               
  SENATOR MILLER  moved to adopt the Lauterbach 2/18/97 B version of           
 SB 75.  There were no objections and it was so ordered.                       
                                                                               
 Number 140                                                                    
                                                                               
  MR. TIM BENINTENDI,  staff to Senator Kelly, said that SB 75 would           
 change the application criteria for those taking the Alaska CPA               
 examination which is given every May and November.  It would not              
 change the test itself, or the licensing criteria.                            
                                                                               
 SB 75 is needed because there have been dramatic increases in the             
 number of foreign non-resident applicants who have recently come to           
 Alaska to take the test.  Many of those applicants have no                    
 accounting background and do not live or practice in Alaska.                  
                                                                               
 Concerns have arisen for the integrity of Alaska's exam process and           
 for the security of the exam itself.  Currently Alaska's criteria             
 for the application process is the lowest in the country and merely           
 requires a baccalaureate degree in any field.  MR. BENINTENDI                 
 referenced last year's numbers for applicants: 75 - 100 test takers           
 compared to 507 in this past November alone.                                  
                                                                               
 The costs of exams are designed to break even.  SB 75 requires a              
 minimum of academic course work in college level accounting, one              
 year of public accounting experience under the direct supervision             
 of a CPA, or the near-completion of a degree in accounting.                   
                                                                               
 MR. BENINTENDI said that Section 2 of the bill addresses an                   
 unrelated issue but it is an issue that must be resolved in                   
 statute.  Section 2 allows the professional use of a designation              
 "EA" by enrolled agents, those unlicensed accountants or tax                  
 practitioners enrolled by the IRS to engage in tax-related                    
 business.                                                                     
                                                                               
 SB 75 is supported by the State Board of Accountancy, the Society             
 of CPAs, and the Alaska Society of Independent Accountants.                   
                                                                               
 Number 195                                                                    
                                                                               
  SENATOR GREEN  asked how the changes will affect foreign applicants.         
 MR. BENINTENDI explained most foreign applicants don't have a                 
 background in accounting.  Instituting the new requirements will              
 remove casual applicants from the market.                                     
                                                                               
 Number 212                                                                    
                                                                               
  MR. CHUCK GRIFFIN,  a Palmer CPA, said he has served on the State            
 Board of Public Accountancy for seven years.  As a result of the              
 burden placed on the Board of Accountancy and the administrative              
 staff at the Division of Occupational Licensing, he requested this            
 bill from Senator Kelly.  He supported Mr. Benintendi's testimony             
 and said no one wants to take anything away from any foreign                  
 candidates who have passed parts of the examination under prior               
 standards.  Those applicants would be able to continue the testing            
 process.                                                                      
                                                                               
  MR. BRAD SHAFFER  said he supported SB 75 as amended.                        
                                                                               
 Number 266                                                                    
                                                                               
  MS CATHERINE REARDON,  Director, Division of Occupational Licensing,         
 said she supported SB 75.                                                     
                                                                               
  SENATOR WARD  moved to pass CSSB 75(STA) from committee with                 
 individual recommendations with the accompanying $0 fiscal notes.             
 There were no objections and it was so ordered.