HB 26-EXTEND BOARD OF PUBLIC ACCOUNTANCY  3:23:11 PM CHAIR OLSON announced that the first order of business would be HOUSE BILL NO. 26, "An Act extending the termination date of the Board of Public Accountancy; and providing for an effective date." 3:23:20 PM REPRESENTATIVE MIKE HAWKER, Alaska State Legislature, stated that HB 26 is one of the ministerial duties of the legislature, which is reauthorization of boards and commissions in compliance with the recommendations made by the legislative auditors. He related the bill would extend the termination date of the Board of Public Accountancy (BPA) until June 30, 2021, in accordance with the recommendations of the legislative auditors. The auditors concluded that the BPA serves the public interests by effectively licensing certified public accountants. The board also monitors the profession and ensures that only qualified individuals practice as certified public accountants (CPAs). REPRESENTATIVE HAWKER said the auditor's one recommendation had nothing to do with the board and instead pertained to an ongoing administrative issue within the Division of Corporations, Business and Professional Licensing (CBPL) in the Department of Commerce, Community & Economic Development (DCCED). He related the CBPL division administers all professional boards and licenses, but the division stills needs to address deficiencies with its investigative case management system. He pointed out the CBPL agrees with this decision and is continuing to work to implement the system. He noted previously another audit recommendation was made for improvements to the CBPL, which the division has resolved. He acknowledged the extension is until June 30, 2021, which spans a long period, but pointed out that audits cost money. He did not see the state dissolving the BPA, since the regulation of accountants will always be necessary. The BPA has demonstrated its maturity, manages the CPAs, works with the legislature, and government as clearly intended. He asked members to pass out the bill. 3:27:05 PM REPRESENTATIVE HERRON asked for a status on the corrective measures. REPRESENTATIVE HAWKER asked the division to respond, but added he thought the management has undergone personnel changes and has developed an administrative plan. 3:28:22 PM KRIS CURTIS, Legislative Auditor, Division of Legislative Finance, Legislative Agencies & Offices, said the auditors are just beginning to conduct five sunset audits and auditors have not revisited the agency to determine whether the finding has been addressed; however someone from the division might be able to answer the status. 3:29:14 PM DON HABEGER, Director, Corporations, Business, and Professional Licensing (CBPL), Department of Commerce, Community & Economic Development (DCCED), responded that the division has taken a number of steps to correct the deficiency. He related in 2011 the legislative auditors audited the division. At the time, the division had recently purchased and installed an investigative database. One audit finding was that the database conversion did not convert adequately and data was missing. Thus, the division needed to go back and retool. The division discovered other issues and formed a task force that identified 11 issues to improve the database software and hardware. The division requested and received supplemental funding from the legislature in FY 12 to implement these tasks. He reported the division marshaled task force two and is about halfway finished implementing the 11 tasks. He anticipated it will take to the end of FY 13 to complete. 3:31:22 PM CHAIR OLSON asked if he was comfortable with the extension date. MR. HABEGER answered that at this time he is comfortable. He said the vendor seems to be responding appropriately. 3:31:59 PM REPRESENTATIVE SADDLER related some boards have had issues with the investigative expenses and asked him whether this is also an issue with the BPA. MR. HABEGER answered no, not with investigations. He agreed with Representative Hawker's view that the BPA is a mature board. He said he has observed the BPA at meetings and "they don't take any guff from their licensees." He concluded the BPA is quite an impressive group in how it deals with its issues. 3:32:50 PM CHAIR OLSON, after first determining no one else wished to testify, closed public testimony on HB 26. 3:33:14 PM REPRESENTATIVE REINBOLD moved to report HB 26 out of committee with individual recommendations and the accompanying fiscal note. There being no objection, HB 26 was reported from the House Labor and Commerce Standing Committee. 3:33:43 PM The committee took an at-ease from 3:33 p.m. to 3:36 p.m.