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 AS 08.04.100 is repealed and reenacted to read: 30 Sec. 08.04.100.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