Legislature(2009 - 2010)BELTZ 105 (TSBldg)
02/11/2010 02:00 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB227 | |
| SB205 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 205 | TELECONFERENCED | |
| *+ | SB 227 | TELECONFERENCED | |
| + | TELECONFERENCED |
SB 227-PUBLIC ACCOUNTING
2:07:12 PM
CHAIR PASKVAN announced SB 227 to be up for consideration.
JAKE HAMBURG, staff to Senator Paskvan, sponsor of SB 227, said
that he and Senator Paskvan worked closely with the State Board
of Public Accountancy and the Alaska Society of Certified Public
Accountants in developing this bill and it enjoys their full
support. He said SB 227 updates Alaska's uniform accountancy
statutes to keep up with today's business demands and the needs
of the accounting profession. Forty-five states have already
enacted some version of this bill that simply does three things.
The first is that it establishes mobility provisions to allow
licensed certified public accountants (CPAs) from other states
to practice certain functions within Alaska without unnecessary
filings, forms and fees. Mr. Hamburg explained that this will
allow Alaska CPAs to practice in other states without the same
hassles due to reciprocity requirements by some of those states.
He said this provision allows consumers or clients to receive
timely services from CPAs best suited to the job regardless of
their location, without the hindrances of unnecessary filings,
forms, and increased costs that do not protect the public
interest.
2:09:49 PM
Second, this bill updates Alaska's uniform accountancy statutes
to allow for simple majority ownership by CPAs of CPA firms. The
accounting profession has changed over the past several years,
as has the composition of today's typical CPA firms, he
explained. Non-CPA professionals who enhance accountants'
abilities to serve their clients, such as lawyers, computer
information specialists or consultants, now work for accounting
firms. Additionally, modern audits require input from and
participation by many different types of professions and
professionals in addition to CPA auditors. To maintain an
experienced multi-disciplinary audit force, firms need to be
able to offer ownership to different types of professionals.
Ownership can also be used to attract and retain talented
individuals that would be invaluable to a CPA firm.
MR. HAMBERG stated that competition for talented employees is
more intense than ever especially in an accounting firm and with
the current law non-CPA professionals cannot become partners.
Alaska CPA firms can have a tougher time hiring and retaining
these non-CPAs because they often have little incentive to make
a long-term commitment to them.
2:11:07 PM
Third, he said, this bill enhances the board's ability to
protect the public's interest by directing it to investigate a
complaint made by the accountancy regulatory body of another
state. It adds a fair way to take corrective action regarding
ownership by making it a basis for board action. It also
provides that persons with practice privileges, out-of-state
permits, or out-of-state exemptions and legal entities that hire
individuals with practice privileges consent to the jurisdiction
and disciplinary authority of the board. He said it will also
insure that CPA firms in Alaska are able to provide the best
services to their clients and remain competitive with their
peers from outside of Alaska.
2:12:32 PM
SENATOR BUNDE said this seems to be a common-sense improvement
of business and asked if he had heard of any "push-back."
MR. HAMBURG replied no.
2:13:14 PM
JULIE OLSON, President, Alaska Society of CPAs, said the Society
passed a resolution supporting SB 227.
2:14:10 PM
CHAIR PASKVAN asked if this does everything the Society wants it
to.
MS. OLSON replied yes.
2:14:37 PM
SENATOR THOMAS asked what percent of the accounting firms in
Alaska belong to the Society.
MS. OLSON replied a majority of the accounting firms here, and
the State Society has about 500 members.
2:15:26 PM
SENATOR THOMAS remarked that he didn't want to pass this lengthy
bill that seems innocuous and then have his phone "ring off the
hook" the next day about the legislature giving opportunities to
out-of-state firms.
MS. OLSON said the Society made every effort to make sure all
the CPAs in the state are aware of this through their newsletter
and they hadn't heard of any opposition to it.
2:16:09 PM
LISA ROGERS, Alaska Society of CPAs, supported SB 227. She said
it aligns Alaska statutes with three provisions set forth in the
Uniform Accountancy Act, which is model legislation drafted by
the National Association of State Boards of Accountancy (NASBA)
and the American Institute of Certified Public Accountants
(AICPA). She said the NASBA represents the regulators and is an
organization to which the boards of accountancy in all licensing
jurisdictions in the country belong. The AICPA represents the
profession and sets forth the professional standards to which
all CPAs must adhere. Although SB 227 is 21 pages long, it
accomplishes three things: mobility, uniform disciplinary
proceedings and a simple majority CPA ownership of firms. Forty-
five other states have already passed this legislation.
MS. ROGERS said they have spent over two years working on
drafting the legislation with the help of NASBA and AICPA. Both
the State Board of Public Accountancy and the Alaska Society of
CPAs have passed unanimous resolutions in support of legislation
that accomplishes these objectives and she knows of no
opposition to it. She urged passing it quickly, so Alaska can be
in sync with the rest of the nation.
2:18:25 PM
MAX MERTZ, CPA, Juneau, said he has been on the Board of Public
Accountancy for six years, and was chair for four years ending
in 2009. It was during his term as chair that the mobility and
firm ownership idea came to the state and this bill was
developed. He said the Board of Accountancy takes its mission of
regulating the accounting profession in Alaska and protecting
the public interest very seriously. One of the chief challenges
it has is to be able to effectively pursue licensees from other
states that come to Alaska but don't properly serve their
clients.
He explained that out-of-state practice becomes more common-
place in the electronic age. Prior to the mobility initiative in
2007, each state had its own rules for out-of-state licensees to
provide services in other states and for states to carry through
and enforce actions on Boards of Accountancy in other states.
This resulted in inefficient systems that are difficult to
navigate making further compliance and enforcement nearly
impossible.
With mobility, he said, the Alaska Board of Accountancy will
gain automatic jurisdiction over all CPAs practicing in the
state. This will enable the board to discipline out-of-state
licensees whether they are registered in Alaska and licensed or
not. The mobility bill can be likened to a driver's license that
will provide CPAs with mobility to practice in other states than
their home state while retaining and strengthening the state
board's ability to protect the public interest. Certainly, it's
only successful if it's passed in all the states and now three
of the remaining five have legislation pending and the other two
expect to have legislation very shortly. Likewise, Mr. Mertz
said he had heard of no opposition to the bill.
2:21:43 PM
CHAIR PASKVAN asked if this statute gives Alaska jurisdiction to
discipline potential violations of the standard in other states.
MR. MERTZ replied yes.
2:22:29 PM
CHAIR PASKVAN closed public testimony and noted the zero fiscal
note.
2:22:38 PM
SENATOR MEYER moved to report SB 227 from committee with
individual recommendations and the attached zero fiscal note.
There were no objections and it was so ordered.
2:23:41 PM
At ease
2:26:42 PM
CHAIR PASKVAN called the meeting back to order at 2:26 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 205 Bill Packet.pdf |
SL&C 2/11/2010 2:00:00 PM |
SB 205 |