03/11/2009 03:15 PM House LABOR & COMMERCE

HB 78-EXTEND BOARD OF PUBLIC ACCOUNTANCY                                                                                      
                                                                                                                                
4:21:36 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON  announced that the  next order of business  would be                                                               
HOUSE BILL NO. 78, "An Act  extending the termination date of the                                                               
Board  of  Public Accountancy;  and  providing  for an  effective                                                               
date."                                                                                                                          
                                                                                                                                
4:22:20 PM                                                                                                                    
                                                                                                                                
KONRAD JACKSON,  Staff, Representative  Kurt Olson,  Alaska State                                                               
Legislature,  and  as  staff  to the  House  Labor  and  Commerce                                                               
Standing Committee, sponsor of HB  78, stated that the bill would                                                               
extend the  Board of  Public Accountancy  and noted  the auditors                                                               
recommended the board be extended for four years.                                                                               
                                                                                                                                
4:23:35 PM                                                                                                                    
                                                                                                                                
PAT  DAVIDSON,  Legislative   Auditor,  Division  of  Legislative                                                               
Audit, Alaska  State Legislature,  explained to members  that the                                                               
audit for  the Board  of Public  Accountancy was  contracted out.                                                               
She explained that the Division  of Legislative Audit's office is                                                               
staffed  with many  certified public  accountants (CPAs).   Thus,                                                               
the  auditors  were  not considered  independent  and  a  private                                                               
consultant was hired  to conduct the audit.   The consultant used                                                               
the criteria in  statute, and as Mr. Jackson  indicated the audit                                                               
recommends that the  Board of Public Accountancy  be extended for                                                               
four years.  She pointed out  that the board is working to change                                                               
how  it operates  with  less  oversight by  the  board, and  more                                                               
oversight by the national organization.   Therefore, the auditors                                                               
recommended  a shorter  extension time  for the  board to  ensure                                                               
public interest is served.                                                                                                      
                                                                                                                                
MS. DAVIDSON  elaborated that the audit  recommended board member                                                               
terms be filled more timely.   Secondly, the board is financially                                                               
self-supporting,  and  the  auditors  found that  a  surplus  was                                                               
increasing.   Thus,  the auditors  recommended that  license fees                                                               
should  be  reduced.   Finally,  in  reviewing the  investigative                                                               
efforts,  auditors found  periods of  inactivity on  some of  the                                                               
investigations   and  auditors   found  the   tracking  mechanism                                                               
associated  with the  investigative  software is  not very  good.                                                               
She opined that the investigators  need better software to better                                                               
enable them to track case management on investigations.                                                                         
                                                                                                                                
4:26:42 PM                                                                                                                    
                                                                                                                                
CHAIR  OLSON,  after first  determining  no  one else  wished  to                                                               
testify, closed public testimony on HB 78.                                                                                      
                                                                                                                                
4:26:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LYNN moved  to report HB 78 out  of committee with                                                               
individual  recommendations  and  the accompanying  fiscal  note.                                                               
There  being no  objection, HB  78  was reported  from the  House                                                               
Labor and Commerce Standing Committee.                                                                                          
                                                                                                                                
4:27:20 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 4:27 p.m. to 4:28 p.m.