HOUSE BILL NO. 78                                                                                                             
                                                                                                                                
     "An Act extending the termination date of the Board of                                                                     
     Public Accountancy; and providing for an effective                                                                         
     date."                                                                                                                     
                                                                                                                                
9:27:59 AM                                                                                                                    
                                                                                                                                
KONRAD JACKSON,  STAFF, REPRESENTATIVE  KURT OLSON,  reviewed                                                                   
the  legislation.  He  stated   that  the  Legislative  Audit                                                                   
Division reviewed the actions  of the board and recommended a                                                                   
four  year extension.  In  the future,  some  of the  board's                                                                   
services  may  be  outsourced  and  changes  to  the  board's                                                                   
structure might be instituted.  The board may also pursue new                                                                   
statutes  and  regulations. Therefore,  a  shorter  extension                                                                   
period was chosen.                                                                                                              
                                                                                                                                
Co-Chair Stedman noted the Department  of Commerce, Community                                                                   
and Economic Development's fiscal note for $99.4 thousand.                                                                      
                                                                                                                                
9:29:18 AMAT EASE                                                                                                             
9:29:46 AMRECONVENED                                                                                                          
                                                                                                                                
Senator  Olson  asked  for  a   description  of  the  service                                                                   
agreement  or  to  briefly explain  what  services  might  be                                                                   
outsourced.                                                                                                                     
                                                                                                                                
PAT   DAVIDSON,  LEGISLATIVE   AUDITOR,   LEGISLATIVE   AUDIT                                                                   
DIVISION,  LEGISLATIVE  AFFAIRS  AGENCY,  responded  that  in                                                                   
order  to  achieve  efficiencies   the  board  is  discussing                                                                   
delegating  services such  as:  management of  the CPA  exam;                                                                   
evaluation of applicants; and  continuing education services.                                                                   
Senator  Olson asked  if investigations  concerning  criminal                                                                   
activity  or malpractice  will  be outsourced.  Ms.  Davidson                                                                   
explained  that   investigations  are   a  function   of  the                                                                   
division.   The   board   evaluates  the   results   of   the                                                                   
investigations and that function will not be outsourced.                                                                        
                                                                                                                                
9:32:27 AM                                                                                                                    
                                                                                                                                
Senator Thomas  cited correspondence  from the Department  of                                                                   
Commerce,   Community  and  Economic   Development   and  the                                                                   
Department  of Administration  regarding  the board's  vacant                                                                   
positions. He  asked if the  vacancies have been  filled. Ms.                                                                   
Davidson answered  that she did  not know the  current status                                                                   
of the board positions.                                                                                                         
                                                                                                                                
Senator Thomas noted the division's  second recommendation to                                                                   
reduce  professional licensing  fees.  He asked  if the  fees                                                                   
will  be reduced  since the  board is  carrying a  cumulative                                                                   
balance. Ms.  Davidson responded  that she  did not  know the                                                                   
board's response to the recommendation.                                                                                         
                                                                                                                                
Co-Chair Hoffman MOVED to report  HB 78 out of Committee with                                                                   
individual recommendations and  the accompanying fiscal note.                                                                   
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
HB  78  was  REPORTED  out of  Committee  with  a  "do  pass"                                                                   
recommendation  and with previously  published fiscal  impact                                                                   
note from the Department of Commerce,  Community and Economic                                                                   
Development.