SSHB 274: "An Act relating to the practice of accounting; and providing for an effective date."
00 SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 274 01 "An Act relating to the practice of accounting; and providing for an effective date." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. AS 06.26.020(a)(9) is amended to read: 04 (9) has a certified public accountant license [CERTIFICATE] issued 05 under AS 08.04.105 or 08.04.195 [AS 08.04], the person is acting within the scope of 06 the license [CERTIFICATE], and the person and any accounting firm of the person 07 are not trustees of more trusts than the number established for the person and 08 accounting firm by the department by regulation or order; in this paragraph, 09 "accounting firm" means a partnership, a professional corporation organized under 10 AS 10.45, or another association organized for the practice of public accounting and in 11 which the person practices public accounting; 12 * Sec. 2. AS 08.04.005 is amended to read: 13 Sec. 08.04.005. Purpose. It is the policy of the state and the purpose of this 14 chapter to promote the reliability of information that is used for guidance in financial 15 transactions or assessing the financial status or performance of commercial,
01 noncommercial, and governmental enterprises. The public interest requires that 02 (1) persons professing special competence in accountancy or who offer 03 assurance as to the reliability or fairness of presentation of financial information 04 should demonstrate their qualifications to do so, and that persons who have not 05 demonstrated and maintained adequate qualifications should not be permitted to hold 06 themselves out as having special competence or to offer assurance about their actions; 07 (2) the professional conduct of persons licensed as having special 08 competence in accountancy should be regulated in all aspects of the practice of public 09 accounting [ACCOUNTANCY]; 10 (3) a public authority competent to prescribe and assess the 11 qualifications and to regulate the professional conduct of practitioners of public 12 accounting [ACCOUNTANCY] should be established; and 13 (4) the use of titles relating to the practice of public accounting 14 [ACCOUNTANCY] that are likely to mislead the public as to the status or 15 competence of the persons using these titles should be prohibited. 16 * Sec. 3. AS 08.04.020(b) is amended to read: 17 (b) Except for public members, an individual [NO ONE] may not be 18 appointed unless the individual holds [WHO DOES NOT HOLD] a current 19 [CERTIFICATE OR] license under AS 08.04.105 [AND WHO IS NOT ELIGIBLE 20 TO RECEIVE PERMITS UNDER THIS CHAPTER]. Public members may not be 21 employed by a person holding a license, permit, or practice privilege [LICENSED] 22 under this chapter [OR BY A BUSINESS ENTITY HOLDING A PERMIT UNDER 23 THIS CHAPTER]. Notwithstanding AS 08.01.025, an accountant who does not hold 24 a license [IS NOT CERTIFIED OR LICENSED] under this chapter and is not 25 engaged in the practice of public accounting [ACCOUNTANCY] in violation of this 26 chapter is eligible for appointment as a public member under this section. 27 * Sec. 4. AS 08.04.030 is amended to read: 28 Sec. 08.04.030. Removal of members. The governor shall remove any 29 member of the board whose [CERTIFICATE OR] license has been revoked or 30 suspended. The governor may, after hearing, remove any member for neglect of duty 31 or other just cause.
01 * Sec. 5. AS 08.04 is amended by adding a new section to read: 02 Sec. 08.04.075. Substantial equivalency. Upon request of an applicant for a 03 practice privilege under AS 08.04.420(a), or on the board's own motion, the board 04 shall determine whether the qualifications of another state or the applicant are 05 substantially equivalent to the national standard or to another standard established by 06 the board to protect the public interest. The board may adopt by regulation the 07 qualifications established by a nationally recognized professional organization for 08 accountants as the national standard or for another standard established by the board to 09 protect the public interest. The board may accept the determination of a nationally 10 recognized professional organization for accountants of whether the qualifications of 11 the other state or the applicant are substantially equivalent to the national standard or 12 to another standard established by the board to protect the public interest. 13 * Sec. 6. AS 08.04.080 is amended to read: 14 Sec. 08.04.080. Adoption of rules. The board may adopt rules of professional 15 conduct to establish and maintain a high standard of integrity and dignity in the 16 profession of public accounting [ACCOUNTANCY]. At least 60 days before 17 [PRIOR TO] the adoption of any rule or amendment, the board shall mail copies of the 18 proposed rule or amendment together with a notice of its effective date [BY 19 CERTIFIED MAIL, WITH RETURN RECEIPT REQUESTED,] to each holder of a 20 license or permit issued under this chapter to the address of the license or permit 21 holder last known to the board. 22 * Sec. 7. AS 08.04 is amended by adding a new section to article 1 to read: 23 Sec. 08.04.085. Regulations regarding attest functions. Under AS 08.04.080, 24 the board shall adopt regulations that identify what activities constitute attest 25 functions. To identify activities as attest functions, the board may adopt the criteria 26 established by a nationally recognized professional organization for accountants. 27 * Sec. 8. AS 08.04. is amended by adding a new section to read: 28 Sec. 08.04.105. License for individual to practice as a public accountant. 29 (a) The board shall issue a license to engage in the practice of public accounting to an 30 individual who meets the requirements of AS 08.04.110 - 08.04.130. The license is 31 valid for the remainder of the biennial licensing period during which the initial license
01 was granted. 02 (b) The board may renew a license granted under (a) of this section or a 03 renewal granted under this section if the licensee 04 (1) maintains all of the licensee's offices as required by AS 08.04.360 - 05 08.04.380; 06 (2) complies with the continuing education requirements of 07 AS 08.04.425 and the quality review requirements of AS 08.04.426; and 08 (3) complies with the requirements of this chapter. 09 * Sec. 9. AS 08.04.110 is amended to read: 10 Sec. 08.04.110. Personal requirements. An applicant for a [THE] certified 11 public accountant license [CERTIFICATE] shall be at least 19 years of age and of 12 good moral character. 13 * Sec. 10. AS 08.04.120(a) is amended to read: 14 (a) The education and experience requirements for an applicant are [AS 15 FOLLOWS: 16 (1)] a baccalaureate degree or its equivalent conferred by a college or 17 university acceptable to the board and additional semester hours of post-baccalaureate 18 study so that the total educational program includes at least 150 hours, with an 19 accounting concentration or equivalent as determined by the board by regulation to be 20 appropriate, and two years of accounting experience satisfactory to the board [; OR 21 (2) A BACCALAUREATE DEGREE OR ITS EQUIVALENT 22 CONFERRED BY A COLLEGE OR UNIVERSITY ACCEPTABLE TO THE 23 BOARD AND ADDITIONAL SEMESTER HOURS OF POST-BACCALAUREATE 24 STUDY SO THAT THE TOTAL EDUCATIONAL PROGRAM INCLUDES AT 25 LEAST 150 HOURS, AND THREE YEARS OF ACCOUNTING EXPERIENCE 26 SATISFACTORY TO THE BOARD]. 27 * Sec. 11. AS 08.04.130 is amended to read: 28 Sec. 08.04.130. Examination. An applicant shall pass an examination in 29 accounting and reporting, in auditing, and in other related subjects that the board 30 determines appropriate. The examination shall be designated in advance by the board 31 as the examination for the license [CERTIFICATE] of certified public accountant.
01 The board shall use the Uniform Certified Public Accountant Examination of the 02 American Institute of Certified Public Accountants and the institute's advisory grading 03 service, if available. The board shall, by regulation, establish what constitutes a 04 passing grade on the examination for purposes of licensure under AS 08.04.105 - 05 08.04.240 [AS 08.04.100 - 08.04.240]. 06 * Sec. 12. AS 08.04.180 is amended to read: 07 Sec. 08.04.180. Prior applicants. An applicant who, before April 26, 1960, 08 applied to take an examination for the certificate of certified public accountant, or held 09 a valid license as a public accountant, or was regularly enrolled in a college or 10 correspondence course in accounting, or a person whose registration under this chapter 11 is accepted by the board, shall receive a license [CERTIFICATE] when the applicant 12 has met either the requirements of this chapter, or the requirements that were effective 13 at the time the applicant's first application was filed, at the option of the applicant. 14 * Sec. 13. AS 08.04.195 is amended to read: 15 Sec. 08.04.195. Reciprocity with other jurisdictions. (a) Notwithstanding 16 AS 08.04.110 - 08.04.190 [AS 08.04.100 - 08.04.130], the board may issue a license 17 to engage in the practice of public accounting [CERTIFICATE] to an applicant who 18 holds a license [CERTIFICATE], or its equivalent, issued by another state or 19 qualifying territory [JURISDICTION] if the applicant 20 (1) passed the Uniform Certified Public Accountant Examination of 21 the American Institute of Certified Public Accountants in order to receive the 22 applicant's initial license [CERTIFICATE] from the other state or qualifying 23 territory [JURISDICTION]; 24 (2) has four [FIVE] years of experience outside the state in the 25 practice of public accounting or meets equivalent requirements established by the 26 board by regulation; the four [FIVE] years must occur after the applicant passes the 27 examination required in (1) of this subsection and within the 10 years immediately 28 preceding the applicant's application under this chapter; 29 (3) is not the subject of review procedures, disciplinary proceedings, or 30 unresolved complaints related to the applicant's license [CERTIFICATE] from 31 another other state or qualifying territory [JURISDICTION]; and
01 (4) is of good moral character. 02 (b) An applicant for the initial issuance of a license [CERTIFICATE] under 03 this section shall list in the application all states or qualifying territories where the 04 applicant has applied for or holds a license [CERTIFICATE], or its equivalent, and 05 shall notify the board in writing within 30 days after a denial, revocation, or 06 suspension of a license [CERTIFICATE], or the [ITS] equivalent, by another state or 07 qualifying territory [JURISDICTION]. 08 (c) The board may by regulation establish the education and continuing 09 education requirements for the issuance of a license [CERTIFICATE] under this 10 section. 11 * Sec. 14. AS 08.04.200 is amended to read: 12 Sec. 08.04.200. Use of title "certified public accountant" by individual. An 13 individual [" A PERSON] who has [RECEIVED] a license [CERTIFICATE] from 14 the board as a certified public accountant or [AND WHO] holds a practice privilege 15 or an out-of-state permit [CURRENT PERMIT ISSUED] under AS 08.04.420 16 [AS 08.04.390 - 08.04.440] shall be known as a certified public accountant and may 17 use the abbreviation "CPA." 18 * Sec. 15. AS 08.04.210 is amended to read: 19 Sec. 08.04.210. Effect on [EXISTING] certificates existing on April 26, 20 1960. A person who, on April 26, 1960, held a certificate as a certified public 21 accountant issued under the laws of the Territory or State of Alaska is not required to 22 obtain a license [CERTIFICATE] under this chapter but is otherwise subject to this 23 chapter. Certificates issued before April 26, 1960, shall be considered licenses 24 [CERTIFICATES] issued under this chapter. 25 * Sec. 16. AS 08.04.240 is amended to read: 26 Sec. 08.04.240. Registration of partnerships, limited liability companies, 27 [AND] corporations, and other legal entities [COMPOSED OF CERTIFIED 28 PUBLIC ACCOUNTANTS]. (a) The board shall grant a permit to engage in the 29 practice of public accounting as a partnership to a [A] partnership that registers 30 [ENGAGED IN THIS STATE IN THE PRACTICE OF PUBLIC ACCOUNTING 31 MAY REGISTER] with the board as a partnership of certified public accountants if
01 the partnership [IT] meets the following requirements: 02 (1) at least one general partner shall [MUST] be a certified public 03 accountant of this state in good standing; 04 (2) each partner shall [MUST] be a certified public accountant of some 05 state in good standing; and 06 (3) except as otherwise provided in this chapter, each resident manager 07 in charge of an office of a partnership [FIRM] in this state [,] and each partner 08 personally engaged in this state in the practice of public accounting as a member of 09 that partnership shall [FIRM MUST] be a certified public accountant of this state in 10 good standing. 11 (b) The board shall grant a permit to engage in the practice of public 12 accounting as a corporation to a [A] corporation organized for the practice of public 13 accounting that registers [MAY REGISTER] with the board as a corporation of 14 certified public accountants if the corporation [IT] meets the following requirements: 15 (1) the sole purpose and business of the corporation must be to furnish 16 to the public services not inconsistent with this chapter or the regulations adopted 17 under it by the board; however, the corporation may invest its funds in a manner not 18 incompatible with the practice of public accounting; 19 (2) each shareholder of the corporation shall [MUST] be a certified 20 public accountant of some state in good standing and must be principally employed by 21 the corporation or actively engaged in its business; no other person may have any 22 interest in the stock of the corporation; the principal officer of the corporation and any 23 officer or director having authority over the practice of public accounting by the 24 corporation must be a certified public accountant of some state in good standing; 25 (3) at least one shareholder of the corporation shall [MUST] be a 26 certified public accountant of this state in good standing; 27 (4) except as otherwise provided in this chapter, each resident manager 28 in charge of an office of the corporation in this state and each shareholder or director 29 personally engaged in this state in the practice of public accounting must be a certified 30 public accountant of this state in good standing; 31 (5) to facilitate compliance with the provisions of this section relating
01 to the ownership of stock, there must be a written agreement binding the corporation 02 or the qualified shareholders to purchase shares offered for sale by, or not under the 03 ownership or effective control of, a qualified shareholder and binding a holder not a 04 qualified shareholder to sell these shares to the corporation or the qualified 05 shareholders; the agreement must be noticed on each certificate of corporate stock; the 06 corporation may purchase any amount of its stock for this purpose, notwithstanding 07 any impairment of capital, so long as one share remains outstanding; 08 (6) the corporation shall [MUST] be in compliance with those other 09 regulations pertaining to corporations practicing public accounting in this state that the 10 board may adopt. 11 (c) Registration [APPLICATION] for a permit under this section 12 [REGISTRATION] shall be made upon the affidavit of a general partner, member, or 13 shareholder who is a certified public accountant of this state in good standing. The 14 board shall, in each case, determine whether the applicant is eligible for a permit 15 under this section [REGISTRATION]. A partnership, limited liability company, 16 [OR] corporation, or other legal entity that is issued a permit under this section 17 [SO REGISTERED AND THAT HOLDS A PERMIT ISSUED UNDER 18 AS 08.04.400] may use the words "certified public accountants" or the abbreviation 19 "CPAs" in connection with the name of the [ITS] partnership, limited liability 20 company, corporation, or other legal entity [CORPORATE NAME]. The 21 [NOTIFICATION SHALL BE GIVEN THE] board shall be notified within one 22 month after the admission or withdrawal of a partner, member, or shareholder from a 23 partnership, limited liability company, [OR] corporation, or other legal entity issued 24 a permit [REGISTERED] under this section. 25 (d) The board shall grant a permit to engage in the practice of public 26 accounting as a limited liability company to a [A] limited liability company 27 engaged in this state in the practice of public accounting that registers [MAY 28 REGISTER] with the board as a limited liability company of certified public 29 accountants if 30 (1) the [THE] sole purpose and the sole business of the company are to 31 furnish to the public services that are consistent with this chapter or the regulations
01 adopted under this chapter, except that the company may invest its money in a manner 02 that is compatible with the practice of public accounting; 03 (2) at least one member is a certified public accountant of this state in 04 good standing; 05 (3) each member of the company is a certified public accountant in 06 good standing of this or another state of the United States; and 07 (4) except as otherwise provided in this chapter, each resident manager 08 in charge of an office of the company in this state and each member personally 09 engaged in this state in the practice of public accounting are certified public 10 accountants of this state in good standing. 11 * Sec. 17. AS 08.04.240 is amended by adding new subsections to read: 12 (e) The board may grant a permit to engage in the practice of public 13 accounting to a legal entity, other than a partnership, corporation, or limited liability 14 company, if the legal entity registers with the board on a form provided by the board 15 and satisfies other registration requirements and conditions for the legal entity that are 16 established by the board by regulation to protect the public interest. 17 (f) An initial permit issued under (a), (b), (d), or (e) of this section lasts for the 18 remainder of the biennial licensing period during which the initial permit was granted. 19 (g) The board shall renew a permit granted under (a), (b), (d), or (e) of this 20 section or a renewal issued under this subsection if 21 (1) the permittee maintains all of the licensee's offices as required by 22 AS 08.04.360 - 08.04.380; 23 (2) each individual who is required by (a), (b), (d), or (e) of this section 24 to be a certified public accountant complies with the continuing education 25 requirements of AS 08.04.425 and the quality review requirements of AS 08.04.426; 26 and 27 (3) the permittee complies with the requirements of this chapter. 28 (h) A partnership registered under former AS 08.04.330 - 08.04.340 on 29 June 29, 1980, qualifies for a permit under this section as long as each partner 30 personally engaged in the practice of public accounting in this state holds a license or 31 permit under AS 08.04.661.
01 * Sec. 18. AS 08.04.360 is amended to read: 02 Sec. 08.04.360. Supervision required. Each office established or maintained 03 in this state for the practice of public accounting shall be under the direct supervision 04 of an individual [A PERSON] in residence who holds a license [PERMIT] under 05 AS 08.04.105 or a practice privilege under AS 08.04.420 [AS 08.04.390 - 06 08.04.440]. The supervisor may be [EITHER] a sole proprietor, partner, principal, 07 member, or staff employee. A supervisor may serve in this capacity at one office only. 08 * Sec. 19. AS 08.04.370 is amended to read: 09 Sec. 08.04.370. Use of title "certified public accountant" by 10 [REGISTERED] office of organization. The title "certified public accountant" or the 11 abbreviation "CPA" may not be used in connection with an office of a person holding 12 a permit [REGISTERED] under AS 08.04.240 or 08.04.420(b) [THIS CHAPTER] 13 unless the supervision requirement of [PERSON IN RESIDENCE REQUIRED BY] 14 AS 08.04.360 is satisfied [A CERTIFIED PUBLIC ACCOUNTANT IN THIS 15 STATE]. 16 * Sec. 20. AS 08.04.380 is amended to read: 17 Sec. 08.04.380. Waiver of requirements. The board may waive the 18 requirements of AS 08.04.240(a)(3), (b)(4), and (d)(4), and 08.04.360 and 08.04.370 if 19 (1) the community has a population of 2,000 or less; and 20 (2) the individual, partnership, corporation, limited liability 21 company or other legal entity that opens [FIRM OPENING] or maintains 22 [MAINTAINING] the office maintains another office in the state that meets the 23 requirements outlined in AS 08.04.360 and 08.04.370. 24 * Sec. 21. AS 08.04.410 is amended to read: 25 Sec. 08.04.410. Inactive [CERTIFICATE OR] license for person not 26 engaged in practice. Notwithstanding AS 08.04.105 or 08.04.195, an individual [A 27 PERSON] holding a [CERTIFICATE OR] license who is not engaged in the practice 28 of public accounting may maintain the [CERTIFICATE OR] license in good standing 29 by notifying [REGISTERING WITH] the board that the individual is inactive and 30 paying the required [REGISTRATION] fee. 31 * Sec. 22. AS 08.04.420 is repealed and reenacted to read:
01 Sec. 08.04.420. Practice privileges and out-of-state permits. (a) An 02 individual whose principal place of business is in another state or a qualifying territory 03 who is authorized to practice public accounting in the other state or qualifying territory 04 but who is not licensed under AS 08.04.105 or 08.04.195 may engage in the practice 05 of public accounting in this state under an out-of-state practice privilege if 06 (1) the individual submits to the board 07 (A) an application on a form provided by the board; and 08 (B) any fee required by the board; and 09 (2) the board 10 (A) verifies the individual's current authorization to practice 11 public accounting in the other state or qualifying territory; and 12 (B) determines under AS 08.04.075 that 13 (i) the qualifications required by the other state or 14 qualifying territory are substantially equivalent to the national standard 15 or to another standard established by the board to protect the public 16 interest; or 17 (ii) the individual's qualifications are substantially 18 equivalent to the national standard or to another standard established by 19 the board to protect the public interest. 20 (b) Notwithstanding (a) of this section, an individual who has satisfied (a)(1) 21 of this section may engage in the practice of public accounting in this state while the 22 board is making the verification and determinations under (a)(2) of this section. If the 23 board denies a practice privilege under (a) of this section, the individual shall stop 24 engaging in the practice of public accounting in this state when the individual receives 25 the notice provided by the board under (d) of this section. 26 (c) A partnership, corporation, limited liability company, or other legal entity 27 whose principal place of business is in another state or a qualifying territory, that is 28 authorized to practice public accounting in the other state or qualifying territory, and 29 that does not have a permit under AS 08.04.240 may engage in the practice of public 30 accounting in this state under an out-of-state permit if the practice does not involve 31 opening an office in this state and if the partnership, corporation, limited liability
01 company or other legal entity 02 (1) submits to the board 03 (A) a written notice on a form provided by the board; 04 (B) the fee required by the board; and 05 (C) verification of the current authorization of the partnership, 06 corporation, limited liability company, or other legal entity to practice public 07 accounting in the other state or qualifying territory; and 08 (2) satisfies any other requirements that the board establishes by 09 regulation to protect the public interest. 10 (d) If the board denies an individual a practice privilege under (a) of this 11 section or denies a partnership, corporation, limited liability company, or other legal 12 entity an out-of-state permit under (c) of this section, the board shall provide notice of 13 the denial to the individual, partnership, corporation, limited liability company, or 14 other legal entity. 15 (e) If a person engages in the practice of public accounting under an out-of- 16 state permit authorized by (c) of this section, the permit does not authorize an 17 individual who is working for the person to hold the individual out to the public as 18 available to provide public accounting work in the state. 19 (f) Notwithstanding AS 08.01.100(b), the board shall establish by regulation 20 how long a practice privilege authorized by (a) of this section and an out-of-state 21 permit authorized by (c) of this section last before they expire and require renewal, 22 except that the initial term of a practice privilege and an out-of-state permit may not 23 exceed three years. The board may renew a practice privilege or an out-of-state permit 24 and shall establish by regulation the terms for and length of a renewal. 25 (g) An individual, partnership, corporation, limited liability company, or other 26 legal entity that engages in the practice of public accounting under this section 27 (1) consents to the jurisdiction and disciplinary authority of the board; 28 (2) agrees to comply with state law, including the regulations adopted 29 by the board; and 30 (3) consents to the appointment of the board as the person's agent for 31 the service of process upon whom process may be served in an action or a proceeding
01 against the individual, partnership, corporation, limited liability company, or other 02 legal entity arising out of a transaction or an operation connected with or incidental to 03 public accounting services performed by the individual, partnership, corporation, 04 limited liability company, or other legal entity while engaging in the practice of public 05 accounting in this state. 06 * Sec. 23. AS 08.04 is amended by adding a new section to read: 07 Sec. 08.04.423. Competency requirement after licensing. If, at any time 08 after receiving a license, a licensee decides to perform attest functions, the licensee 09 shall meet the competency requirements established by the board by regulation. 10 * Sec. 24. AS 08.04.425 is amended to read: 11 Sec. 08.04.425. Continuing education. (a) The board shall by regulation 12 prescribe requirements for continuing education for individuals with licenses 13 [PERSONS LICENSED TO PRACTICE AS CERTIFIED PUBLIC 14 ACCOUNTANTS] under this chapter. In adopting these regulations, the board may 15 (1) use and rely upon guidelines and pronouncements with respect to 16 continuing education issued by recognized educational and professional associations 17 in the field; and 18 (2) prescribe content, duration, and organization of courses or 19 programs that will satisfy the continuing education requirements. 20 (b) Each [AFTER THE EXPIRATION OF TWO YEARS IMMEDIATELY 21 FOLLOWING THE EFFECTIVE DATE OF REGULATIONS ADOPTED BY THE 22 BOARD UNDER (a) OF THIS SECTION, EVERY] application for renewal of a 23 license [PERMIT] to practice as a certified public accountant by an individual [A 24 PERSON] who has held a license [CERTIFICATE] as a certified public accountant 25 for two years or more shall be accompanied or supported by documents or other 26 evidence indicating satisfaction of the continuing education requirements prescribed 27 by the board during the two years immediately preceding the application. 28 (c) Failure by an applicant for renewal of a license, [PERMIT TO 29 PRACTICE] to furnish the evidence required under (b) of this section constitutes 30 grounds for revocation, suspension, or refusal to renew the license [PERMIT] under 31 AS 08.04.450 unless the board determines that failure to have been due to reasonable
01 cause or excusable neglect. However, the board may renew a license [PERMIT TO 02 PRACTICE] despite failure to furnish evidence of satisfaction of the continuing 03 education requirements established under (a) of this section if the applicant agrees to 04 follow a particular program or schedule of continuing education prescribed by the 05 board. 06 (d) In adopting regulations under (a) of this section, or in issuing individual 07 orders under (c) of this section, the board 08 (1) shall consider 09 (A) the accessibility of applicants to the continuing education 10 courses or programs that it may require; and 11 (B) any impediments to interstate practice of public accounting 12 [ACCOUNTANCY] that may result from differences in continuing education 13 requirements prescribed by other states; and 14 (2) may relax or suspend the continuing education requirements 15 (A) for applicants who certify that they do not intend to engage 16 in the practice of public accounting [ACCOUNTANCY]; or 17 (B) in instances of individual hardship. 18 * Sec. 25. AS 08.04.426 is repealed and reenacted to read: 19 Sec. 08.04.426. Quality review. (a) The board shall require as a condition for 20 renewal of a license under AS 08.04.105 or a permit under AS 08.04.240 that the 21 applicant for the renewal undergo a quality review conducted as required by the board 22 by regulation. 23 (b) The quality review required by (a) of this section must include verification 24 that the reviewing individual meets the competency requirements set out in the 25 professional standards established by the board for the services. In this subsection, 26 "reviewing individual" means the individual who is responsible for supervising and 27 signing off on or authorizing another individual to sign off on attest functions 28 performed by the applicant. 29 (c) The board shall adopt the regulations required by (a) of this section in a 30 reasonable time before the regulations are scheduled to become effective. 31 (d) The regulations adopted under (a) of this section must require that
01 (1) an applicant demonstrate that the applicant has undergone a quality 02 review that is a satisfactory equivalent to the quality review required by (a) of this 03 section; 04 (2) the quality reviews be subject to supervision by an oversight body 05 established or approved by the board; 06 (3) the quality reviews be operated and the documents be maintained 07 in a manner that is designed to preserve confidentiality; and 08 (4) the board or another person, except for the oversight body 09 authorized by (2) of this subsection, may not access the documents furnished or 10 generated in the course of the quality review. 11 (e) The oversight body required by (d)(2) of this section shall 12 (1) periodically report to the board on the effectiveness of the quality 13 review program it is supervising; and 14 (2) provide the board with a list of the applicants who have 15 participated in a quality review program that is satisfactory to the board. 16 * Sec. 26. AS 08.04.440 is amended to read: 17 Sec. 08.04.440. Effect of failure to obtain license, permit, or practice 18 privilege. Failure of an individual, partnership, limited liability company, [OR] 19 corporation, or other legal entity to apply for the required license, permit, or 20 practice privilege [TO PRACTICE] or to pay the required fee within (1) three years 21 from the expiration date of the license, permit, or practice privilege [TO PRACTICE 22 OR REGISTRATION] last obtained or renewed, or (2) three years from the date 23 [UPON WHICH] the person [CERTIFICATE HOLDER OR LICENSEE] was 24 granted a [CERTIFICATE AS A CERTIFIED PUBLIC ACCOUNTANT OR] license 25 or permit as a public accountant valid under AS 08.04.661 deprives the individual, 26 partnership, limited liability company, [OR] corporation, or other legal entity of the 27 right to a license, permit, or practice privilege [REGISTRATION] or renewal of a 28 license, permit, or practice privilege unless the board determines that the failure is 29 excusable. In case of excusable failure, the fee for a license, permit, or practice 30 privilege [, REGISTRATION,] or renewal of a license, permit, or practice privilege 31 under this section may not exceed three times one year's portion of the fee that would
01 have otherwise been required for the license, permit, or practice privilege 02 [REGISTRATION], or renewal. 03 * Sec. 27. AS 08.04.450 is amended to read: 04 Sec. 08.04.450. Revocation or suspension of [CERTIFICATE,] license, 05 practice privilege [REGISTRATION], or permit. In addition to its powers under 06 AS 08.01.075, the board may revoke [OR SUSPEND A CERTIFICATE OR 07 LICENSE, OR MAY REVOKE], suspend, or refuse to renew a license, practice 08 privilege, or [ANY] permit, or may censure a [ANY CERTIFICATE] holder of a 09 license, practice privilege [, LICENSEE, REGISTRANT], or permit [HOLDER] for 10 (1) fraud or deceit in obtaining a [ANY CERTIFICATE,] license, 11 practice privilege [REGISTRATION], or permit required by this chapter; 12 (2) dishonesty or gross negligence in the practice of public accounting, 13 or other acts discreditable to the accounting profession; 14 (3) violation of a [ANY] provision of AS 08.04.500 - 08.04.610; 15 (4) violation of a rule of professional conduct or other regulation 16 adopted by the board; 17 (5) conviction of a felony under the laws of any state or of the United 18 States; 19 (6) conviction of any crime, an essential element of which is 20 dishonesty or fraud, under the laws of any state or of the United States; 21 (7) cancellation, revocation, suspension, or refusal to renew authority 22 to practice as a certified public accountant or public accountant in any other state for 23 any cause other than failure to pay a required fee; 24 (8) suspension or revocation of the right to practice before any state or 25 federal agency; 26 (9) failure [OF A CERTIFIED PUBLIC ACCOUNTANT] to satisfy 27 the continuing education requirements prescribed by the board under AS 08.04.425, 28 except as conditioned, relaxed, or suspended by the board under AS 08.04.425(c) and 29 (d); [OR] 30 (10) failure [OF A CERTIFIED PUBLIC ACCOUNTANT] to 31 satisfactorily complete the supervision required by AS 08.04.423 or a quality review
01 under AS 08.04.426; or 02 (11) committing an act in another state for which the holder of the 03 license, practice privilege, or permit would be subject to discipline in this state 04 [UNDER AS 08.04.426 EXCEPT AS CONDITIONED, RELAXED, OR 05 SUSPENDED BY THE BOARD UNDER AS 08.04.426(b) - (d)]. 06 * Sec. 28. AS 08.04.470 is amended to read: 07 Sec. 08.04.470. Revocation or suspension of permit of partnership, limited 08 liability company, corporation, or other legal entity [CORPORATE 09 REGISTRATION OR PERMIT]. The board shall revoke the [REGISTRATION 10 AND] permit [TO PRACTICE] of a partnership, limited liability company, [OR] 11 corporation, or other legal entity if at any time it does not meet the qualifications 12 prescribed by the sections of this chapter under which it qualified for the permit 13 [REGISTRATION]. 14 * Sec. 29. AS 08.04.480 is amended to read: 15 Sec. 08.04.480. Grounds for revocation or suspension of permit of 16 partnership, limited liability company, corporation, or other legal entity 17 [CORPORATE PERMIT]. The board may revoke or suspend the [REGISTRATION 18 AND] permit [TO PRACTICE] of a partnership, limited liability company, [OR] 19 corporation, or other legal entity may revoke, suspend, or refuse to renew its permit 20 [TO PRACTICE], or may censure the partnership, limited liability company, [OR] 21 corporation, or other legal entity for any of the causes enumerated in AS 08.04.450 22 [AND 08.04.460,] or for any of the following additional causes: 23 (1) the revocation or suspension of the [CERTIFICATE,] license [,] or 24 practice privilege [REGISTRATION] of a [ANY] partner, a member, a [OR] 25 shareholder, or, if the permittee is a legal entity other than a partnership, 26 corporation, or limited liability company, an owner of the permittee; 27 (2) the revocation, suspension, or refusal to renew the permit [TO 28 PRACTICE] of a [ANY] partner, a member, or a shareholder, or, if the permittee is 29 a legal entity other than a partnership, corporation, or limited liability company, 30 an owner of the permittee; 31 (3) the cancellation, revocation, suspension, or refusal to renew the
01 authority of the partnership or any partner, the limited liability company or a member, 02 [OR] the corporation or a shareholder, or the other legal entity to practice public 03 accounting in another state for any cause other than failure to pay a required fee in that 04 state. 05 * Sec. 30. AS 08.04.490 is amended to read: 06 Sec. 08.04.490. Reinstatement. Upon application in writing and after a 07 hearing, the board may issue a new license or practice privilege [CERTIFICATE] to 08 an individual [A CERTIFIED PUBLIC ACCOUNTANT] whose license or practice 09 privilege [CERTIFICATE] has been revoked, or may issue a new permit to a person 10 [REREGISTRATION OF ONE] whose permit [REGISTRATION] has been revoked, 11 or may modify the suspension of or may reissue any [CERTIFICATE,] license, 12 practice privilege, or permit to practice public accounting that has been revoked or 13 suspended. 14 * Sec. 31. AS 08.04.495 is amended to read: 15 Sec. 08.04.495. Fees. The Department of Commerce, Community, and 16 Economic Development shall set fees under AS 08.01.065 for examinations, 17 reexaminations, permits, licenses, and practice privileges [CERTIFICATES, AND 18 REGISTRATIONS]. 19 * Sec. 32. AS 08.04.500 is amended to read: 20 Sec. 08.04.500. Individual posing as a certified public accountant. (a) An 21 individual [A PERSON] may not assume or use the title or designation "certified 22 public accountant" or the abbreviation "CPA" or any other title, designation, word, 23 letter, abbreviation, sign, card, or device tending to indicate that the individual 24 [PERSON] is a certified public accountant, unless the individual [PERSON] has 25 received a license [CERTIFICATE, HOLDS A LIVE PERMIT,] and all of the 26 individual's [PERSON'S] offices in this state for the practice of public accounting are 27 maintained as required by AS 08.04.360 - 08.04.380. 28 (b) This section does not prohibit an individual [A CERTIFIED PUBLIC 29 ACCOUNTANT] in good standing in any state holding a practice privilege 30 [PERMIT] under AS 08.04.420 from using the title "certified public accountant." [.] 31 * Sec. 33. AS 08.04.505 is amended to read:
01 Sec. 08.04.505. Issuance of reports. Only a person who [OR FIRM THAT] 02 holds a valid license, practice privilege, or permit issued under this chapter may issue 03 a report on financial statements of another person [, FIRM, ORGANIZATION,] or 04 governmental unit. This restriction does not apply to 05 (1) an officer, partner, member, or employee of a sole proprietorship, 06 partnership, corporation, limited liability company, or other legal entity [FIRM 07 OR ORGANIZATION] affixing that person's signature to a statement or report in 08 reference to the financial affairs of the sole proprietorship, partnership, 09 corporation, limited liability company, or other legal entity [FIRM OR 10 ORGANIZATION] with wording designating the position, title, or office that the 11 person holds in the sole proprietorship, partnership, corporation, limited liability 12 company, or other legal entity [FIRM OR ORGANIZATION]; 13 (2) an act of a public official or employee in the performance of 14 official duties; 15 (3) the performance by persons of other services involving the use of 16 accounting skills, including the preparation of tax returns, management advisory 17 services, and the preparation of financial statements without the issuance of reports on 18 them. 19 * Sec. 34. AS 08.04.510 is amended to read: 20 Sec. 08.04.510. Partnership, limited liability company, [OR] corporation, 21 or other entity posing as a certified public accountant. (a) A partnership, limited 22 liability company, [OR] corporation, or other entity may not assume or use the title 23 or designation "certified public accountant" or the abbreviation "CPA" or any other 24 title, designation, word, letter, abbreviation, sign, card, or device tending to indicate 25 that it is composed of certified public accountants, unless the partnership, limited 26 liability company, [OR] corporation, or other entity [IS REGISTERED AND] holds a 27 [LIVE] permit under AS 08.04.240, is engaging in the practice of public 28 accounting [PRACTICING] under the [ITS REGISTERED] name on its permit, and 29 its offices in this state for the practice of public accounting are maintained as required 30 by AS 08.04.360 - 08.04.380. 31 (b) A partnership, limited liability company, [OR] corporation, or other
01 entity consisting of certified public accountants in good standing in any state, that 02 does not have a permit [REGISTERED] as a partnership, limited liability company, 03 [OR] corporation, or other legal entity consisting of certified public accountants 04 under AS 08.04.240 but holds [HOLDING] a permit under AS 08.04.420, may use the 05 title or designation "certified public accountants." 06 * Sec. 35. AS 08.04.520 is amended to read: 07 Sec. 08.04.520. Individual posing as public accountant. An individual [A 08 PERSON] may not assume or use the title or designation "public accountant" or the 09 abbreviation "PA" or other title, designation, word, letter, abbreviation, sign, card, or 10 device tending to indicate that the individual [THAT PERSON] is a public 11 accountant, unless the individual [PERSON] holds a license, practice privilege, or 12 [LIVE] permit and the individual's [PERSON'S] offices in this state for the practice 13 of public accounting are maintained as required by AS 08.04.360 - 08.04.380. 14 * Sec. 36. AS 08.04.530 is amended to read: 15 Sec. 08.04.530. Partnership, limited liability company, or corporation 16 posing as public accountant. A partnership, limited liability company, or corporation 17 may not assume or use the designation "public accountant" or the abbreviation "PA" 18 or any other title, designation, word, letter, abbreviation, sign, card, or device tending 19 to indicate that the partnership, limited liability company, or corporation is composed 20 of public accountants, unless the partnership, limited liability company, or corporation 21 holds a current [LIVE] permit, is practicing under its registered name, and its office 22 in this state for the practice of public accounting is maintained as required by 23 AS 08.04.360 - 08.04.380. 24 * Sec. 37. AS 08.04.540 is amended to read: 25 Sec. 08.04.540. Use of deceptive title or abbreviation. An individual, 26 partnership, limited liability company, [OR] corporation, or other entity may not 27 assume or use the title or designation "certified accountant," [,] "chartered 28 accountant," [,] "enrolled accountant," [,] "licensed accountant," [,] "registered 29 accountant," [,] or any other title or designation likely to be confused with "certified 30 public accountant" or "public accountant," [,] or any of the abbreviations "C," [,] 31 "EA," [,] "LA," [,] "RA," [,] or similar abbreviations likely to be confused with "CPA"
01 or "PA" except that "EA" may be used to the extent that it relates to the term "enrolled 02 agent" as defined by the federal Internal Revenue Service; however, an individual, 03 partnership, limited liability company, [OR] corporation, or other legal entity holding 04 a current license, [LIVE] permit under AS 08.04.240, or practice privilege and 05 whose offices in this state for the practice of public accounting are maintained as 06 required by AS 08.04.360 - 08.04.380 may hold out to the public as an accountant or 07 auditor. 08 * Sec. 38. AS 08.04.560 is amended to read: 09 Sec. 08.04.560. Individual may not assume title. An individual [A 10 PERSON] may not sign or affix any name or any trade or assumed name used by that 11 individual [PERSON] to any accounting or financial statement [,] or opinion or report 12 on any accounting or financial statement with any wording indicating that the person 13 is a certified public accountant or public accountant or with any wording indicating 14 that the person has expert knowledge in accounting or auditing, unless the individual 15 [PERSON] holds a current license or practice privilege [LIVE PERMIT] and the 16 individual's [PERSON'S] offices in this state for the practice of public accounting are 17 maintained as required by AS 08.04.360 - 08.04.380. 18 * Sec. 39. AS 08.04.580 is amended to read: 19 Sec. 08.04.580. Partnership posing as accountants or auditors. A person 20 may not sign or affix a partnership name to any accounting or financial statement [,] or 21 opinion or report on any accounting or financial statement with any wording 22 indicating that it is a partnership composed of certified public accountants or public 23 accountants or with any wording indicating that the partnership has expert knowledge 24 in accounting or auditing unless the partnership holds a current [LIVE] permit, it is 25 practicing under the [ITS REGISTERED] name on its permit, and its offices in this 26 state for the practice of public accounting are maintained as required by AS 08.04.360 27 - 08.04.380. 28 * Sec. 40. AS 08.04.590 is amended to read: 29 Sec. 08.04.590. Use of title with corporate name. A person may not sign or 30 affix a corporate name to any accounting or financial statement [,] or opinion or report 31 on any accounting or financial statement with any wording indicating that it is a
01 corporation composed of certified public accountants or public accountants or with 02 any wording indicating that the corporation has expert knowledge in accounting or 03 auditing unless the corporation holds a current [LIVE] permit, it is practicing under 04 the [ITS REGISTERED] name on the permit, and its offices in this state for the 05 practice of public accounting are maintained as required by AS 08.04.360 - 08.04.380. 06 * Sec. 41. AS 08.04.595 is amended to read: 07 Sec. 08.04.595. Use of title with limited liability company name. A person 08 may not sign or affix a limited liability company name to an accounting or financial 09 statement, or opinion or report on an accounting or financial statement, with wording 10 indicating that the person is a limited liability company composed of certified public 11 accountants or public accountants or with wording indicating that the company has 12 expert knowledge in accounting or auditing unless the company holds a current 13 [LIVE] permit, it is practicing under the [ITS REGISTERED] name on the permit, 14 and its offices in this state for the practice of public accounting are maintained as 15 required by AS 08.04.360 - 08.04.380. 16 * Sec. 42. AS 08.04 is amended by adding a new section to read: 17 Sec. 08.04.598. Use of title with name of other entity. A person may not sign 18 or affix the name of an entity to an accounting or financial statement or opinion or 19 report on an accounting or financial statement with wording indicating that the person 20 is a legal entity composed of certified public accountants or public accountants or with 21 wording indicating that the entity has expert knowledge in accounting or auditing 22 unless the entity holds a current permit, it is practicing under the name on the permit, 23 and its offices in this state for the practice of public accounting are maintained as 24 required by AS 08.04.360 - 08.04.380. 25 * Sec. 43. AS 08.04.600 is amended to read: 26 Sec. 08.04.600. Disclosure of lack of license or permit. An individual, 27 partnership, limited liability company, [OR] corporation, or other entity that does not 28 hold a current license, a current practice privilege, or a current [LIVE] permit 29 under AS 08.04.240 may not hold out to the public as a certified public accountant or 30 public accountant by use of such words or abbreviations on any sign, card, letterhead, 31 or in any advertisement or directory, without indicating that the individual,
01 partnership, limited liability company, [OR] corporation, or other entity does not 02 hold a current license, a current practice privilege, or a current permit under 03 AS 08.04.240. This section does not prohibit 04 (1) an officer, employee, partner, member, or principal of an 05 organization from self-description through the position, title, or office that the person 06 holds in the organization; 07 (2) an act of a public official or public employee in the performance of 08 that individual's duties; or 09 (3) a person from maintaining a bookkeeping or tax service. 10 * Sec. 44. AS 08.04.610 is amended to read: 11 Sec. 08.04.610. Deceptive use of title or designation by partnership, limited 12 liability company, [OR] corporation [TITLE], or other entity. A person may not 13 assume or use the title or designation "certified public accountant" or "public 14 accountant" or an abbreviation of them, in conjunction with a name indicating or 15 implying that there is a partnership, limited liability company, [OR] corporation, or 16 other entity, or in conjunction with the designation "and Company," "and Co.," 17 "L.L.C.," "LLC," "Ltd.," or any similar designation unless there is a bona fide 18 partnership, limited liability company, [OR] corporation, or other legal entity 19 registered under that name. However, a sole proprietor or partnership lawfully using 20 the title or designation "certified public accountant" or "public accountant" or an 21 abbreviation of them in conjunction with such names or designation on April 26, 1960, 22 may continue to do so if the person or partnership otherwise complies with this 23 chapter. 24 * Sec. 45. AS 08.04.620 is amended to read: 25 Sec. 08.04.620. Exceptions. This chapter does not prohibit 26 (1) an individual who does [A PERSON] not hold a current license 27 or practice privilege [A CERTIFIED PUBLIC ACCOUNTANT OR PUBLIC 28 ACCOUNTANT] from serving as an employee of or as an assistant to an individual, 29 partnership, limited liability company, [OR] corporation, or other legal entity holding 30 a current license, a current practice privilege, or a current [LIVE] permit under 31 AS 08.04.240 so long as the employee or assistant does not use the employee's or the
01 assistant's name in connection with an accounting or financial statement; 02 (2) an individual who holds a valid license or equivalent 03 authorization in another state [A CERTIFIED PUBLIC ACCOUNTANT OR 04 PUBLIC ACCOUNTANT] from indicating that the individual is entitled to use the 05 title "certified public accountant" [OR PUBLIC ACCOUNTANT HOLDS A 06 CERTIFICATE OR LICENSE ENTITLING THE CERTIFIED PUBLIC 07 ACCOUNTANT OR PUBLIC ACCOUNTANT TO THAT DESIGNATION IF THE 08 CERTIFIED PUBLIC ACCOUNTANT OR PUBLIC ACCOUNTANT HOLDS A 09 VALID CERTIFICATE OR LICENSE IN ANY STATE], but the individual 10 [PERSON] may not indicate that services are available to the public unless the 11 individual [CERTIFIED PUBLIC ACCOUNTANT OR PUBLIC ACCOUNTANT] 12 holds a current license or practice privilege [LIVE PERMIT] issued under this 13 chapter; 14 (3) a holder of a certificate, license, or degree from a foreign country 15 that [WHICH] constitutes a recognized qualification for the practice of public 16 accounting in that country from indicating that the person holds the certificate, license, 17 or degree, but the person may not indicate that the person's services are available to 18 the public unless the person holds a current license, practice privilege, or [LIVE] 19 permit issued under this chapter. 20 * Sec. 46. AS 08.04.661 is amended to read: 21 Sec. 08.04.661. Previous licensure. A person holding a valid license as a 22 public accountant under former AS 08.04.270 or a person holding a valid permit under 23 former AS 08.04.390 on June 29, 1980, may continue to practice under the conditions 24 imposed by statute and regulation on that date but that person is otherwise subject to 25 this chapter. A license or permit effective under this section may be renewed under 26 conditions imposed by statute and regulation that were in effect on June 29, 1980, 27 except that any renewal fee required under this chapter applies. 28 * Sec. 47. AS 08.04.662(a) is amended to read: 29 (a) A licensee, a holder of a practice privilege, or a partner, an officer, a 30 shareholder, a member, or an employee of a licensee or holder of a practice 31 privilege [,] may not reveal information communicated to the licensee or practice
01 privilege holder by a client about a matter concerning which the client has employed 02 the licensee or practice privilege holder in a professional capacity. This section does 03 not apply to 04 (1) information required to be disclosed by the standards of the public 05 accounting [ACCOUNTANCY] profession in reporting on the examination of 06 financial statements; 07 (2) the release of information the client has authorized the licensee or 08 practice privilege holder to reveal; 09 (3) information revealed as part of the discovery of evidence related to 10 a court or administrative proceeding or introduced in evidence in a court or 11 administrative proceeding; 12 (4) information revealed in ethical investigations conducted by private 13 professional organizations; or 14 (5) information revealed in the course of a quality review under 15 AS 08.04.426. 16 * Sec. 48. AS 08.04.680 is amended to read: 17 Sec. 08.04.680. Definitions. In this chapter, unless the context indicates 18 otherwise, 19 (1) "attest functions" means the functions identified as attest 20 functions by the board under AS 08.04.085; 21 (2) "board" means the Board of Public Accountancy; 22 (3) [(2)] "certificate" means certificate as a certified public accountant; 23 (4) " legal entity" means an organization that can organize as a 24 legal person under the laws of this state; 25 (5) [(3)] "license" means a license issued under AS 08.04.105 or 26 08.04.195 [AS A PUBLIC ACCOUNTANT]; 27 (6) [(4)] "limited liability company" means an organization organized 28 under AS 10.50 or a foreign limited liability company; in this paragraph, "foreign 29 limited liability company" has the meaning given in AS 10.50.990; 30 (7) [(5) "LIVE PERMIT" MEANS A PERMIT ISSUED UNDER 31 AS 08.04.390 - 08.04.425;
01 (6)] "member" means a person who has been admitted to membership 02 in a limited liability company; 03 (8) "partnership" means a general partnership, a limited 04 partnership, a limited liability partnership, or another form of partnership; 05 (9) "permit" means a permit issued under AS 08.04.240 or 06 08.04.420; 07 (10) "practice of public accounting" means the offering to perform 08 or the performance as a person holding a license, practice privilege, or permit 09 under this chapter of a service involving the use of accounting or auditing skills; 10 in this paragraph, "accounting or auditing skills" includes preparing financial 11 statements, issuing reports on financial statements, furnishing management 12 services, furnishing financial advisory services, providing consulting services, 13 preparing tax returns, advising on tax matters, or consulting on tax matters; 14 (11) "practice privilege" means a practice privilege authorized 15 under AS 08.04.420; 16 (12) "principal place of business" means the fixed location 17 designated by the partnership, corporation, limited liability company, or other 18 legal entity as the location from which the partnership, corporation, limited 19 liability company, or other legal entity directs, controls, and coordinates the 20 majority of the business activities of the partnership, corporation, limited liability 21 company, or other legal entity; 22 (13) [(7)] "quality review" means a study, appraisal, or review of one 23 or more aspects of the professional work of a person [OR FIRM] in the practice of 24 public accounting [ACCOUNTANCY], by a person [OR PERSONS] who holds a 25 certificate [HOLD CERTIFICATES] and who is [ARE] not affiliated with the person 26 [OR FIRM] being reviewed, conducted as prescribed under AS 08.04.426; 27 (14) [(8)] "report," when used with reference to financial statements, 28 means an opinion, report, or other form of language that states or implies assurance as 29 to the reliability of financial statements and that also includes or is accompanied by a 30 statement or implication that the person [OR FIRM] issuing it has special knowledge 31 or competency in accounting or auditing; a statement or implication of special
01 knowledge or competence may arise from use by the issuer of the report of names or 02 titles indicating that the issuer is a certified public accountant or auditor, or from the 03 language of the report itself; except as provided in this paragraph, "report" includes 04 any form of language that disclaims an opinion when the form of the language is 05 conventionally understood to imply a positive assurance as to the reliability of the 06 financial statements referred to or special competence on the part of the person [OR 07 FIRM] issuing the language; and "report" includes any other form of language that is 08 conventionally understood to imply such assurance or such special knowledge or 09 competence; "report" does not include the following disclaimer language when used 10 by nonlicensees in connection with financial statements: 11 (A) "I (we) have prepared the accompanying (financial 12 statements) of (name of entity) as of (time period) for the (period) then 13 ended. This presentation is limited to preparing, in the form of financial 14 statements, information that is the representation of management 15 (owners)."; or 16 (B) "I (we) have not audited or reviewed the accompanying 17 financial statements and, accordingly, do not express an opinion or any 18 other form of assurance on them." [COMPILATION OF FINANCIAL 19 STATEMENT LANGUAGE THAT DOES NOT EXPRESS OR IMPLY 20 ASSURANCE OR SPECIAL KNOWLEDGE OR COMPETENCE.] 21 * Sec. 49. AS 08.04.390, 08.04.400, and 08.04.460 are repealed. 22 * Sec. 50. The uncodified law of the State of Alaska is amended by adding a new section to 23 read: 24 TRANSITIONAL PROVISIONS: REGULATIONS. The Board of Public 25 Accountancy created under AS 08.04.010 may proceed to adopt regulations necessary to 26 implement this Act. The regulations take effect under AS 44.62 (Administrative Procedure 27 Act), but not before the effective date of secs. 1 - 49 of this Act. 28 * Sec. 51. The uncodified law of the State of Alaska is amended by adding a new section to 29 read: 30 TRANSITIONAL PROVISIONS: EFFECT ON CURRENT PERMITTEES. (a) On 31 and after January 1, 2008, an individual with a current permit issued under former
01 AS 08.04.390 may 02 (1) continue to operate under the permit until the permit expires normally 03 under former AS 08.04, as that chapter existed before January 1, 2008, and then receive a 04 license renewal under AS 08.04.105, as added by sec. 8 of this Act; or 05 (2) renew the permit before it expires normally, and receive a license renewal 06 under AS 08.04.105, as added by sec. 8 of this Act. 07 (b) Until an individual who is eligible for a license under (a) of this section receives a 08 license under (a) of this section, the individual satisfies the license requirement of 09 AS 06.26.020(a)(9), as amended by sec. 1 of this Act, even though the individual is not 10 holding the license required by AS 06.26.020(a)(9). 11 (c) On and after January 1, 2008, a partnership, corporation, or limited liability 12 company with a current permit issued under former AS 08.04.400 or the provisions of 13 08.04.420 before amendment by sec. 22 of this Act may 14 (1) continue to operate under the permit until the permit expires normally 15 under former AS 08.04, as that chapter existed before January 1, 2008, and then receive a 16 permit renewal under AS 08.04.240(g), as added by sec. 17 of this Act, or under 17 AS 08.04.420, as repealed and reenacted by sec. 22 of this Act; or 18 (2) renew the permit under AS 08.04.240(g), as added by sec. 17 of this Act, 19 before it expires normally. 20 * Sec. 52. The uncodified law of the State of Alaska is amended by adding a new section to 21 read: 22 TRANSITIONAL PROVISIONS: MEMBERSHIP OF BOARD. AS 08.04.020, as 23 amended by sec. 3 of this Act, does not apply to a member of the Board of Public 24 Accountancy who is a member of the Board of Public Accountancy on the effective date of 25 this section until the term of the board member expires normally under former AS 08.04.020, 26 as that section existed before January 1, 2008. 27 * Sec. 53. Section 50 of this Act takes effect immediately under AS 01.10.070(c). 28 * Sec. 54. Except as provided in sec. 53 of this Act, this Act takes effect January 1, 2008.