02/24/2011 01:30 PM Senate LABOR & COMMERCE

1:32:46 PM                                                                                                                    
          SB  90-BOARD OF PUBLIC ACCOUNTANCY SECRETARY                                                                      
                                                                                                                                
CHAIR EGAN announced SB 90 to be up for consideration.                                                                          
                                                                                                                                
SENATOR GIESSEL said she didn't have her bill packet and had                                                                    
questions.                                                                                                                      
                                                                                                                                
CHAIR EGAN delayed the hearing.                                                                                                 
                                                                                                                                
          SB  90-BOARD OF PUBLIC ACCOUNTANCY SECRETARY                                                                      
                                                                                                                              
CHAIR EGAN brought SB 90 up again.                                                                                              
                                                                                                                                
SENATOR GIESSEL said she supports the  intent of SB 90, but it is                                                               
still not clear  to her why the personnel  department lowered the                                                               
secretary  position to  a range  19 instead  of a  range 23.  The                                                               
reason seems to  be that it's not clear that  the intent was that                                                               
the  person filling  this  role is  actually  a certified  public                                                               
accountant  (CPA),   a  pretty   high  bar.  Also,   the  board's                                                               
regulations  don't  have clear  criteria  that  makes this  is  a                                                               
professional   position  with   a  management   role  that   does                                                               
supervisor and policy  level work. That's how it  got scaled back                                                               
to a  range 19.  It looks  like the person  is just  someone with                                                               
accounting experience.                                                                                                          
                                                                                                                                
She also  thought that  other accounting folks  might want  to be                                                               
raised  to  a  range  23,  an  unintended  consequence.  So,  she                                                               
suggested  that  the   board  make  it  really   clear  in  their                                                               
regulations  that they  intended  a CPA  who  would be  managing,                                                               
supervising and  making policy-level  type decisions.  Then there                                                               
wouldn't be any question about the range level.                                                                                 
                                                                                                                                
2:33:59 PM                                                                                                                    
NICKI NEAL, Director, Division of  Personnel and Labor Relations,                                                               
Department  of   Administration  (DOA),  said  it   was  not  her                                                               
understanding that  the board's intent  is to require a  CPA. She                                                               
didn't know  if even then the  position would get to  a range 23,                                                               
because statutes  require like  pay for  like work  for partially                                                               
exempt positions,  and the Personnel  Board put this  position in                                                               
that category just last week.                                                                                                   
                                                                                                                                
SENATOR PASKVAN asked if she had a position on SB 90.                                                                           
                                                                                                                                
MS. NEAL replied that the division was neutral.                                                                                 
                                                                                                                                
SENATOR PASKVAN  said it was  his belief that the  position would                                                               
be there for purposes of  making determinations on the conduct of                                                               
the members; it's not just an accountant-type position.                                                                         
                                                                                                                                
MS. NEAL responded  that the she had the  specifications, but she                                                               
thought   the  director   would   be  more   familiar  with   the                                                               
responsibilities.                                                                                                               
                                                                                                                                
2:36:31 PM                                                                                                                    
DON  HABEGAR, Director,  Division of  Corporations, Business  and                                                               
Professional  Licensing, Department  of  Commerce, Community  and                                                               
Economic   Development  (DCCED),   said  he   has  had   numerous                                                               
conversations  with the  CPA Board  on this  issue. The  original                                                               
intent  was  to require  a  CPA  and  provide  a range  23  rate.                                                               
However, it was brought up that  a talent pool might be out there                                                               
at the university  level or someone else might be  waiting in the                                                               
wing.  The  board felt  that  at  a  range  19 they  wouldn't  be                                                               
successful in having  enough interest in the  position. They also                                                               
said a  lot of folks from  outside Alaska are interested  in this                                                               
type of  licensure and that  having someone who  is knowledgeable                                                               
about  a wide  variety of  practices in  other jurisdictions  was                                                               
important to  them. So in  the end  language was broadened  in HB
 to include a CPA requirement and accounting skills.                                                                         
                                                                                                                                
MR.  HABEGAR said  the  board  wants to  be  part  of the  hiring                                                               
process. The Department  of Law said if a public  board member is                                                               
voluntary but a  part of their system, they can  be considered an                                                               
employee of the state for this  regard. So, they could be part of                                                               
the interview  process. He added  that speaking on behalf  of the                                                               
board, they would still like to see this bill go through.                                                                       
                                                                                                                                
CHAIR  EGAN said  they passed  this legislation  unanimously last                                                               
year, and  a mistake  was made  saying the  new hire  couldn't be                                                               
over a range  19. So, one of the things  this legislation does is                                                               
correct that mistake allowing the board to hire a range 23.                                                                     
                                                                                                                                
SENATOR  PASKVAN also  clarified  that  the legislature  intended                                                               
this position to be a range 23  a year ago when it was classified                                                               
as a  range 19. He thought  it was misclassified. Language  in SB
 dispenses with any question  about it not being anything other                                                               
than a range 23.                                                                                                                
                                                                                                                                
SENATOR  GIESSEL   asked  if  the   broader  definition   of  the                                                               
requirements  of this  job will  require internal  alignment with                                                               
other folks who have accounting experience.                                                                                     
                                                                                                                                
MS. NEAL answered that some  individuals might think a higher pay                                                               
range for them is warranted because  of this, but it would be her                                                               
position that it's not because they are subject to the pay plan.                                                                
                                                                                                                                
2:42:32 PM                                                                                                                    
SENATOR PASKVAN moved to report SB 90 from committee with                                                                       
individual recommendations and attached zero fiscal note. There                                                                 
were no objections and it was so ordered.                                                                                       
                                                                                                                                
2:42:57 PM                                                                                                                    
At ease from 2:42 to 2:44.                                                                                                      
                                                                                                                                
2:44:13 PM                                                                                                                    
CHAIR EGAN called the meeting back to order and adjourned at                                                                    
2:44 p.m.