CSSSHB 274(FIN): "An Act relating to the practice of accounting; and providing for an effective date."
00 CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 274(FIN) 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 [AND WHO IS NOT ELIGIBLE TO RECEIVE 20 PERMITS UNDER THIS CHAPTER]. Public members may not be employed by a 21 person holding a license, permit, or practice privilege [LICENSED] under this 22 chapter [OR BY A BUSINESS ENTITY HOLDING A PERMIT UNDER THIS 23 CHAPTER]. Notwithstanding AS 08.01.025, an accountant who does not hold a 24 license [IS NOT CERTIFIED OR LICENSED] under this chapter and is not engaged 25 in the practice of public accounting [ACCOUNTANCY] in violation of this chapter is 26 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 08.04.100 is amended to read: 28 Sec. 08.04.100. Certificate granted. The certificate of "Certified Public 29 Accountant" shall be granted by the board to any person who meets the requirements 30 of AS 08.04.110 - 08.04.130. The holder of a certificate issued under this section is 31 not authorized to engage in the practice of public accounting in the state unless
01 the holder also has a current license, permit, or practice privilege issued under 02 this chapter. 03 * Sec. 9. AS 08.04. is amended by adding a new section to read: 04 Sec. 08.04.105. License for individual to practice as a public accountant. 05 (a) The board shall issue a license to engage in the practice of public accounting to an 06 individual who meets the requirements of AS 08.04.110 - 08.04.130. The license is 07 valid for the remainder of the biennial licensing period during which the initial license 08 was granted. 09 (b) The board may renew a license granted under this section if the licensee 10 (1) maintains all of the licensee's offices as required by AS 08.04.360 - 11 08.04.380; 12 (2) complies with the continuing education requirements of 13 AS 08.04.425 and the quality review requirements of AS 08.04.426; and 14 (3) complies with the requirements of this chapter. 15 * Sec. 10. AS 08.04.110 is amended to read: 16 Sec. 08.04.110. Personal requirements. An applicant for a [THE] certified 17 public accountant license [CERTIFICATE] shall be at least 19 years of age and of 18 good moral character. 19 * Sec. 11. AS 08.04.120 is amended to read: 20 Sec. 08.04.120. Educational and experience requirements. (a) The education 21 and experience requirements for an applicant are [AS FOLLOWS: 22 (1)] a baccalaureate degree or its equivalent conferred by a college or 23 university acceptable to the board and additional semester hours of post-baccalaureate 24 study so that the total educational program includes at least 150 hours, with an 25 accounting concentration or equivalent as determined by the board by regulation to be 26 appropriate, and two years of accounting experience satisfactory to the board [; OR 27 (2) A BACCALAUREATE DEGREE OR ITS EQUIVALENT 28 CONFERRED BY A COLLEGE OR UNIVERSITY ACCEPTABLE TO THE 29 BOARD AND ADDITIONAL SEMESTER HOURS OF POST-BACCALAUREATE 30 STUDY SO THAT THE TOTAL EDUCATIONAL PROGRAM INCLUDES AT 31 LEAST 150 HOURS, AND THREE YEARS OF ACCOUNTING EXPERIENCE
01 SATISFACTORY TO THE BOARD]. 02 (b) Notwithstanding (a) of this section, the board may grant a license 03 [CERTIFICATE] to an applicant who has not completed the 150-hour educational 04 program required by (a) of this section if the applicant has received a baccalaureate 05 degree, or its equivalent, before January 1, 2001, from a college or university 06 acceptable to the board, and if the applicant satisfies the other criteria established by 07 the board by regulation for receiving the license [CERTIFICATE]. 08 * Sec. 12. AS 08.04.130 is amended to read: 09 Sec. 08.04.130. Examination. An applicant shall pass an examination in 10 accounting and reporting, in auditing, and in other related subjects that the board 11 determines appropriate. The examination shall be designated in advance by the board 12 as the examination for the license [CERTIFICATE] of certified public accountant. 13 The board shall use the Uniform Certified Public Accountant Examination of the 14 American Institute of Certified Public Accountants and the institute's advisory grading 15 service, if available. The board shall, by regulation, establish what constitutes a 16 passing grade on the examination for purposes of licensure under AS 08.04.105 - 17 08.04.240 [AS 08.04.100 - 08.04.240]. 18 * Sec. 13. AS 08.04.180 is amended to read: 19 Sec. 08.04.180. Prior applicants. An applicant who, before April 26, 1960, 20 applied to take an examination for the certificate of certified public accountant, or held 21 a valid license as a public accountant, or was regularly enrolled in a college or 22 correspondence course in accounting, or a person whose registration under this chapter 23 is accepted by the board, shall receive a license [CERTIFICATE] when the applicant 24 has met either the requirements of this chapter, or the requirements that were effective 25 at the time the applicant's first application was filed, at the option of the applicant. 26 * Sec. 14. AS 08.04.195 is amended to read: 27 Sec. 08.04.195. Reciprocity with other states [JURISDICTIONS]. (a) 28 Notwithstanding AS 08.04.110 - 08.04.190 [AS 08.04.100 - 08.04.130], the board may 29 issue a license to engage in the practice of public accounting [CERTIFICATE] to 30 an applicant who holds a license [CERTIFICATE], or its equivalent, issued by another 31 state [JURISDICTION] if the applicant
01 (1) passed the Uniform Certified Public Accountant Examination of 02 the American Institute of Certified Public Accountants in order to receive the 03 applicant's initial license [CERTIFICATE] from the other state [JURISDICTION]; 04 (2) has four [FIVE] years of experience outside the state in the 05 practice of public accounting or meets equivalent requirements established by the 06 board by regulation; the four [FIVE] years must occur after the applicant passes the 07 examination required in (1) of this subsection and within the 10 years immediately 08 preceding the applicant's application under this chapter; 09 (3) is not the subject of review procedures, disciplinary proceedings, or 10 unresolved complaints related to the applicant's license [CERTIFICATE] from 11 another state [JURISDICTION]; and 12 (4) is of good moral character. 13 (b) An applicant for the initial issuance of a license [CERTIFICATE] under 14 this section shall list in the application all states where the applicant has applied for or 15 holds a license [CERTIFICATE], or its equivalent, and shall notify the board in 16 writing within 30 days after a denial, revocation, or suspension of a license 17 [CERTIFICATE], or the [ITS] equivalent, by another state [JURISDICTION]. 18 (c) The board may by regulation establish the education and continuing 19 education requirements for the issuance of a license [CERTIFICATE] under this 20 section. 21 * Sec. 15. AS 08.04.195 is amended by adding a new subsection to read: 22 (d) The board may renew a license issued under this section if the licensee 23 (1) maintains all of the licensee's offices as required by AS 08.04.360 - 24 08.04.380; 25 (2) complies with the continuing education requirements established 26 under (c) of this section; and 27 (3) complies with the requirements of this chapter. 28 * Sec. 16. AS 08.04.200 is amended to read: 29 Sec. 08.04.200. Use of title "certified public accountant" by individual. An 30 individual [A PERSON] who has [RECEIVED] a license [CERTIFICATE] from the 31 board as a certified public accountant or [AND WHO] holds a practice privilege or
01 an out-of-state permit [CURRENT PERMIT ISSUED] under AS 08.04.420 02 [AS 08.04.390 - 08.04.440] shall be known as a certified public accountant and may 03 use the abbreviation "CPA." 04 * Sec. 17. AS 08.04.210 is amended to read: 05 Sec. 08.04.210. Effect on [EXISTING] certificates existing on April 26, 06 1960. A person who, on April 26, 1960, held a certificate as a certified public 07 accountant issued under the laws of the Territory or State of Alaska is not required to 08 obtain a license [CERTIFICATE] under this chapter but is otherwise subject to this 09 chapter. Certificates issued before April 26, 1960, shall be considered licenses 10 [CERTIFICATES] issued under this chapter. 11 * Sec. 18. AS 08.04.240 is amended to read: 12 Sec. 08.04.240. Application [REGISTRATION] of partnerships, limited 13 liability companies, [AND] corporations, and other legal entities for permits 14 [COMPOSED OF CERTIFIED PUBLIC ACCOUNTANTS]. (a) The board shall 15 grant a permit to engage in the practice of public accounting as a partnership to 16 a [A] partnership that applies to [ENGAGED IN THIS STATE IN THE PRACTICE 17 OF PUBLIC ACCOUNTING MAY REGISTER WITH] the board as a partnership of 18 certified public accountants if the partnership [IT] meets the following requirements: 19 (1) at least one general partner shall [MUST] be a certified public 20 accountant of this state in good standing; 21 (2) each partner shall [MUST] be a certified public accountant of some 22 state in good standing; and 23 (3) except as otherwise provided in this chapter, each resident manager 24 in charge of an office of a partnership [FIRM] in this state [,] and each partner 25 personally engaged in this state in the practice of public accounting as a member of 26 that partnership shall [FIRM MUST] be a certified public accountant of this state in 27 good standing. 28 (b) The board shall grant a permit to engage in the practice of public 29 accounting as a corporation to a [A] corporation organized for the practice of public 30 accounting that applies to [MAY REGISTER WITH] the board as a corporation of 31 certified public accountants if the corporation [IT] meets the following requirements:
01 (1) the sole purpose and business of the corporation must be to furnish 02 to the public services not inconsistent with this chapter or the regulations adopted 03 under it by the board; however, the corporation may invest its funds in a manner not 04 incompatible with the practice of public accounting; 05 (2) each shareholder of the corporation shall [MUST] be a certified 06 public accountant of some state in good standing and must be principally employed by 07 the corporation or actively engaged in its business; no other person may have any 08 interest in the stock of the corporation; the principal officer of the corporation and any 09 officer or director having authority over the practice of public accounting by the 10 corporation must be a certified public accountant of some state in good standing; 11 (3) at least one shareholder of the corporation shall [MUST] be a 12 certified public accountant of this state in good standing; 13 (4) except as otherwise provided in this chapter, each resident manager 14 in charge of an office of the corporation in this state and each shareholder or director 15 personally engaged in this state in the practice of public accounting must be a certified 16 public accountant of this state in good standing; 17 (5) to facilitate compliance with the provisions of this section relating 18 to the ownership of stock, there must be a written agreement binding the corporation 19 or the qualified shareholders to purchase shares offered for sale by, or not under the 20 ownership or effective control of, a qualified shareholder and binding a holder not a 21 qualified shareholder to sell these shares to the corporation or the qualified 22 shareholders; the agreement must be noticed on each certificate of corporate stock; the 23 corporation may purchase any amount of its stock for this purpose, notwithstanding 24 any impairment of capital, so long as one share remains outstanding; 25 (6) the corporation shall [MUST] be in compliance with those other 26 regulations pertaining to corporations practicing public accounting in this state that the 27 board may adopt. 28 (c) Application [REGISTRATION APPLICATION] for a permit under this 29 section [REGISTRATION] shall be made upon the affidavit of a general partner, 30 member, or shareholder who is a certified public accountant of this state in good 31 standing. The board shall, in each case, determine whether the applicant is eligible for
01 a permit under this section [REGISTRATION]. A partnership, limited liability 02 company, [OR] corporation, or other legal entity that is issued a permit under this 03 section [SO REGISTERED AND THAT HOLDS A PERMIT ISSUED UNDER 04 AS 08.04.400] may use the words "certified public accountants" or the abbreviation 05 "CPAs" in connection with the name of the [ITS] partnership, limited liability 06 company, corporation, or other legal entity [CORPORATE NAME]. The 07 [NOTIFICATION SHALL BE GIVEN THE] board shall be notified within one 08 month after the admission or withdrawal of a partner, member, or shareholder from a 09 partnership, limited liability company, [OR] corporation, or other legal entity issued 10 a permit [REGISTERED] under this section. 11 (d) The board shall grant a permit to engage in the practice of public 12 accounting as a limited liability company to a [A] limited liability company 13 engaged in this state in the practice of public accounting that applies to [MAY 14 REGISTER WITH] the board as a limited liability company of certified public 15 accountants if 16 (1) the [THE] sole purpose and the sole business of the company are to 17 furnish to the public services that are consistent with this chapter or the regulations 18 adopted under this chapter, except that the company may invest its money in a manner 19 that is compatible with the practice of public accounting; 20 (2) at least one member is a certified public accountant of this state in 21 good standing; 22 (3) each member of the company is a certified public accountant in 23 good standing of this or another state of the United States; and 24 (4) except as otherwise provided in this chapter, each resident manager 25 in charge of an office of the company in this state and each member personally 26 engaged in this state in the practice of public accounting are certified public 27 accountants of this state in good standing. 28 * Sec. 19. AS 08.04.240 is amended by adding new subsections to read: 29 (e) The board may grant a permit to engage in the practice of public 30 accounting to a legal entity, other than a partnership, corporation, or limited liability 31 company, if the legal entity applies to the board on a form provided by the board and
01 satisfies other application requirements and conditions for the legal entity that are 02 established by the board by regulation to protect the public interest. 03 (f) An initial permit issued under (a), (b), (d), or (e) of this section lasts for the 04 remainder of the biennial licensing period during which the initial permit was granted. 05 (g) The board shall renew a permit granted under (a), (b), (d), or (e) of this 06 section or a renewal issued under this subsection if 07 (1) the permittee maintains all of the licensee's offices as required by 08 AS 08.04.360 - 08.04.380; 09 (2) each individual who is required by (a), (b), (d), or (e) of this section 10 to be a certified public accountant complies with the continuing education 11 requirements of AS 08.04.425 and the quality review requirements of AS 08.04.426; 12 and 13 (3) the permittee complies with the requirements of this chapter. 14 (h) A partnership holding a permit issued under former AS 08.04.330 - 15 08.04.340 on June 29, 1980, qualifies for a permit under this section as long as each 16 partner personally engaged in the practice of public accounting in this state holds a 17 license or permit under AS 08.04.661. 18 * Sec. 20. AS 08.04.360 is amended to read: 19 Sec. 08.04.360. Supervision required. Each office established or maintained 20 in this state for the practice of public accounting shall be under the direct supervision 21 of an individual [A PERSON] in residence who holds a license or a practice 22 privilege [PERMIT UNDER AS 08.04.390 - 08.04.440]. The supervisor may be 23 [EITHER] a sole proprietor, partner, principal, member, or staff employee. A 24 supervisor may serve in this capacity at one office only. 25 * Sec. 21. AS 08.04.370 is amended to read: 26 Sec. 08.04.370. Use of title "certified public accountant" by 27 [REGISTERED] office of organization. The title "certified public accountant" or the 28 abbreviation "CPA" may not be used in connection with an office of an organization 29 holding a permit [REGISTERED] under AS 08.04.240 or 08.04.420(c) [THIS 30 CHAPTER] unless the supervision requirement of [PERSON IN RESIDENCE 31 REQUIRED BY] AS 08.04.360 is satisfied [A CERTIFIED PUBLIC
01 ACCOUNTANT IN THIS STATE]. 02 * Sec. 22. AS 08.04.380 is amended to read: 03 Sec. 08.04.380. Waiver of requirements. The board may waive the 04 requirements of AS 08.04.240(a)(3), (b)(4), and (d)(4), and 08.04.360 and 08.04.370 if 05 (1) the community has a population of 2,000 or less; and 06 (2) the individual, partnership, corporation, limited liability 07 company or other legal entity that opens [FIRM OPENING] or maintains 08 [MAINTAINING] the office maintains another office in the state that meets the 09 requirements outlined in AS 08.04.360 and 08.04.370. 10 * Sec. 23. AS 08.04.410 is amended to read: 11 Sec. 08.04.410. Inactive [CERTIFICATE OR] license for person not 12 engaged in practice. Notwithstanding AS 08.04.105 or 08.04.195, an individual [A 13 PERSON] holding a [CERTIFICATE OR] license who is not engaged in the practice 14 of public accounting may maintain the [CERTIFICATE OR] license in good standing 15 by notifying [REGISTERING WITH] the board that the individual is inactive and 16 paying the required [REGISTRATION] fee. 17 * Sec. 24. AS 08.04.420 is repealed and reenacted to read: 18 Sec. 08.04.420. Practice privileges and out-of-state permits. (a) An 19 individual whose principal place of business is in another state who is authorized to 20 practice public accounting in the other state but who is not licensed under 21 AS 08.04.105 or 08.04.195 may engage in the practice of public accounting in this 22 state under an out-of-state practice privilege if 23 (1) the individual submits to the board 24 (A) an application on a form provided by the board; and 25 (B) any fee required by the board; and 26 (2) the board 27 (A) verifies the individual's current authorization to practice 28 public accounting in the other state; and 29 (B) determines under AS 08.04.075 that 30 (i) the qualifications required by the other state are 31 substantially equivalent to the national standard or to another standard
01 established by the board to protect the public interest; or 02 (ii) the individual's qualifications are substantially 03 equivalent to the national standard or to another standard established by 04 the board to protect the public interest. 05 (b) Notwithstanding (a) of this section, an individual who has satisfied (a)(1) 06 of this section may engage in the practice of public accounting in this state while the 07 board is making the verification and determinations under (a)(2) of this section. If the 08 board denies a practice privilege under (a) of this section, the individual shall stop 09 engaging in the practice of public accounting in this state when the individual receives 10 the notice provided by the board under (d) of this section. 11 (c) A partnership, corporation, limited liability company, or other legal entity 12 whose principal place of business is in another state, that is authorized to practice 13 public accounting in the other state, and that does not have a permit under 14 AS 08.04.240 may engage in the practice of public accounting in this state under an 15 out-of-state permit if the practice does not involve opening an office in this state and if 16 the partnership, corporation, limited liability company or other legal entity 17 (1) submits to the board 18 (A) a written notice on a form provided by the board; 19 (B) the fee required by the board; and 20 (C) verification of the current authorization of the partnership, 21 corporation, limited liability company, or other legal entity to practice public 22 accounting in the other state; and 23 (2) satisfies any other requirements that the board establishes by 24 regulation to protect the public interest. 25 (d) If the board denies an individual a practice privilege under (a) of this 26 section or denies a partnership, corporation, limited liability company, or other legal 27 entity an out-of-state permit under (c) of this section, the board shall provide notice of 28 the denial to the individual, partnership, corporation, limited liability company, or 29 other legal entity. 30 (e) If a person engages in the practice of public accounting under an out-of- 31 state permit authorized by (c) of this section, the permit does not authorize an
01 individual who is working for the person to hold the individual out to the public as 02 available to provide public accounting work in the state. 03 (f) Notwithstanding AS 08.01.100(b), the board shall establish by regulation 04 how long a practice privilege authorized by (a) of this section and an out-of-state 05 permit authorized by (c) of this section last before they expire and require renewal, 06 except that the initial term of a practice privilege and an out-of-state permit may not 07 exceed three years. The board may renew a practice privilege or an out-of-state permit 08 and shall establish by regulation the terms for and length of a renewal. 09 (g) An individual, partnership, corporation, limited liability company, or other 10 legal entity that engages in the practice of public accounting under this section 11 (1) consents to the jurisdiction and disciplinary authority of the board; 12 (2) agrees to comply with state law, including the regulations adopted 13 by the board; and 14 (3) consents to the appointment of the board as the person's agent for 15 the service of process upon whom process may be served in an action or a proceeding 16 against the individual, partnership, corporation, limited liability company, or other 17 legal entity arising out of a transaction or an operation connected with or incidental to 18 public accounting services performed by the individual, partnership, corporation, 19 limited liability company, or other legal entity while engaging in the practice of public 20 accounting in this state. 21 * Sec. 25. AS 08.04 is amended by adding a new section to read: 22 Sec. 08.04.423. Competency requirement after licensing. If, at any time 23 after receiving a license, a licensee decides to perform attest functions, the licensee 24 shall meet the competency requirements established by the board by regulation. 25 * Sec. 26. AS 08.04.425 is amended to read: 26 Sec. 08.04.425. Continuing education. (a) The board shall by regulation 27 prescribe requirements for continuing education for individuals with licenses 28 [PERSONS LICENSED TO PRACTICE AS CERTIFIED PUBLIC 29 ACCOUNTANTS] under this chapter. In adopting these regulations, the board may 30 (1) use and rely upon guidelines and pronouncements with respect to 31 continuing education issued by recognized educational and professional associations
01 in the field; and 02 (2) prescribe content, duration, and organization of courses or 03 programs that will satisfy the continuing education requirements. 04 (b) Each [AFTER THE EXPIRATION OF TWO YEARS IMMEDIATELY 05 FOLLOWING THE EFFECTIVE DATE OF REGULATIONS ADOPTED BY THE 06 BOARD UNDER (a) OF THIS SECTION, EVERY] application for renewal of a 07 license [PERMIT] to practice as a certified public accountant by an individual [A 08 PERSON] who has held a license [CERTIFICATE] as a certified public accountant 09 for two years or more shall be accompanied or supported by documents or other 10 evidence indicating satisfaction of the continuing education requirements prescribed 11 by the board during the two years immediately preceding the application. 12 (c) Failure by an applicant for renewal of a license, [PERMIT TO 13 PRACTICE] to furnish the evidence required under (b) of this section constitutes 14 grounds for revocation, suspension, or refusal to renew the license [PERMIT] under 15 AS 08.04.450 unless the board determines that failure to have been due to reasonable 16 cause or excusable neglect. However, the board may renew a license [PERMIT TO 17 PRACTICE] despite failure to furnish evidence of satisfaction of the continuing 18 education requirements established under (a) of this section if the applicant agrees to 19 follow a particular program or schedule of continuing education prescribed by the 20 board. 21 (d) In adopting regulations under (a) of this section, or in issuing individual 22 orders under (c) of this section, the board 23 (1) shall consider 24 (A) the accessibility of applicants to the continuing education 25 courses or programs that it may require; and 26 (B) any impediments to interstate practice of public accounting 27 [ACCOUNTANCY] that may result from differences in continuing education 28 requirements prescribed by other states; and 29 (2) may relax or suspend the continuing education requirements 30 (A) for applicants who certify that they do not intend to engage 31 in the practice of public accounting [ACCOUNTANCY]; or
01 (B) in instances of individual hardship. 02 * Sec. 27. AS 08.04.426 is repealed and reenacted to read: 03 Sec. 08.04.426. Quality review. (a) The board may require as a condition for 04 renewal of a license or a permit that the applicant for the renewal undergo a quality 05 review conducted as required by the board by regulation. 06 (b) The quality review under (a) of this section must include verification that 07 the reviewing individual meets the competency requirements set out in the 08 professional standards established by the board for the services. In this subsection, 09 "reviewing individual" means the individual who is responsible for supervising and 10 signing off on or authorizing another individual to sign off on attest functions 11 performed by the applicant. 12 (c) The board shall adopt the regulations under (a) of this section in a 13 reasonable time before the regulations are scheduled to become effective. 14 (d) The regulations adopted under (a) of this section may require that 15 (1) an applicant demonstrate that the applicant has undergone a quality 16 review that is a satisfactory equivalent to the quality review under (a) of this section; 17 (2) the quality reviews be subject to supervision by an oversight body 18 established or approved by the board; 19 (3) the quality reviews be operated and the documents be maintained 20 in a manner that is designed to preserve confidentiality; and 21 (4) the board or another person, except for the oversight body 22 authorized by (2) of this subsection, may not access the documents furnished or 23 generated in the course of the quality review. 24 (e) An oversight body required by (d)(2) of this section shall 25 (1) periodically report to the board on the effectiveness of the quality 26 review program it is supervising; and 27 (2) provide the board with a list of the applicants who have 28 participated in a quality review program that is satisfactory to the board. 29 * Sec. 28. AS 08.04.440 is amended to read: 30 Sec. 08.04.440. Effect of failure to obtain license, permit, or practice 31 privilege. Failure of an individual, partnership, limited liability company, [OR]
01 corporation, or other legal entity to apply for the required license, permit, or 02 practice privilege [TO PRACTICE] or to pay the required fee within (1) three years 03 from the expiration date of the license, permit, or practice privilege [TO PRACTICE 04 OR REGISTRATION] last obtained or renewed, or (2) three years from the date 05 [UPON WHICH] the person [CERTIFICATE HOLDER OR LICENSEE] was 06 granted a [CERTIFICATE AS A CERTIFIED PUBLIC ACCOUNTANT OR] license 07 or permit as a public accountant valid under AS 08.04.661 deprives the individual, 08 partnership, limited liability company, [OR] corporation, or other legal entity of the 09 right to a license, permit, or practice privilege [REGISTRATION] or renewal of a 10 license, permit, or practice privilege unless the board determines that the failure is 11 excusable. In case of excusable failure, the fee for a license, permit, or practice 12 privilege [, REGISTRATION,] or renewal of a license, permit, or practice privilege 13 under this section may not exceed three times one year's portion of the fee that would 14 have otherwise been required for the license, permit, or practice privilege 15 [REGISTRATION], or renewal. 16 * Sec. 29. AS 08.04.450 is amended to read: 17 Sec. 08.04.450. Revocation or suspension of [CERTIFICATE,] license, 18 practice privilege [REGISTRATION], or permit. In addition to its powers under 19 AS 08.01.075, the board may revoke [OR SUSPEND A CERTIFICATE OR 20 LICENSE, OR MAY REVOKE], suspend, or refuse to renew a license, practice 21 privilege, or [ANY] permit, or may censure a [ANY CERTIFICATE] holder of a 22 license, practice privilege [, LICENSEE, REGISTRANT], or permit [HOLDER] for 23 (1) fraud or deceit in obtaining a [ANY CERTIFICATE,] license, 24 practice privilege [REGISTRATION], or permit required by this chapter; 25 (2) dishonesty or gross negligence in the practice of public accounting, 26 or other acts discreditable to the accounting profession; 27 (3) violation of a [ANY] provision of AS 08.04.500 - 08.04.610; 28 (4) violation of a rule of professional conduct or other regulation 29 adopted by the board; 30 (5) conviction of a felony under the laws of any state or of the United 31 States;
01 (6) conviction of any crime, an essential element of which is 02 dishonesty or fraud, under the laws of any state or of the United States; 03 (7) cancellation, revocation, suspension, or refusal to renew authority 04 to practice as a certified public accountant or public accountant in any other state for 05 any cause other than failure to pay a required fee; 06 (8) suspension or revocation of the right to practice before any state or 07 federal agency; 08 (9) failure [OF A CERTIFIED PUBLIC ACCOUNTANT] to satisfy 09 the continuing education requirements prescribed by the board under AS 08.04.425, 10 except as conditioned, relaxed, or suspended by the board under AS 08.04.425(c) and 11 (d); [OR] 12 (10) failure [OF A CERTIFIED PUBLIC ACCOUNTANT] to 13 satisfactorily complete the supervision required by AS 08.04.423 or a quality review 14 requirement under AS 08.04.426; or 15 (11) committing an act in another state for which the holder of the 16 license, practice privilege, or permit would be subject to discipline in this state 17 [UNDER AS 08.04.426 EXCEPT AS CONDITIONED, RELAXED, OR 18 SUSPENDED BY THE BOARD UNDER AS 08.04.426(b) - (d)]. 19 * Sec. 30. AS 08.04.470 is amended to read: 20 Sec. 08.04.470. Revocation [OR SUSPENSION] of permit of partnership, 21 limited liability company, corporation, or other legal entity [CORPORATE 22 REGISTRATION OR PERMIT]. The board shall revoke the [REGISTRATION 23 AND] permit [TO PRACTICE] of a partnership, limited liability company, [OR] 24 corporation, or other legal entity if at any time it does not meet the qualifications 25 prescribed by the sections of this chapter under which it qualified for the permit 26 [REGISTRATION]. 27 * Sec. 31. AS 08.04.480 is amended to read: 28 Sec. 08.04.480. Grounds for revocation or suspension of permit of 29 partnership, limited liability company, corporation, or other legal entity 30 [CORPORATE PERMIT]. The board may revoke or suspend the [REGISTRATION 31 AND] permit [TO PRACTICE] of a partnership, limited liability company, [OR]
01 corporation, or other legal entity may revoke, suspend, or refuse to renew its permit 02 [TO PRACTICE], or may censure the partnership, limited liability company, [OR] 03 corporation, or other legal entity for any of the causes enumerated in AS 08.04.450 04 [AND 08.04.460,] or for any of the following additional causes: 05 (1) the revocation or suspension of the [CERTIFICATE,] license [,] or 06 practice privilege [REGISTRATION] of a [ANY] partner, a member, a [OR] 07 shareholder, or, if the permittee is a legal entity other than a partnership, 08 corporation, or limited liability company, an owner of the permittee; 09 (2) the revocation, suspension, or refusal to renew the permit [TO 10 PRACTICE] of a [ANY] partner, a member, or a shareholder, or, if the permittee is 11 a legal entity other than a partnership, corporation, or limited liability company, 12 an owner of the permittee; 13 (3) the cancellation, revocation, suspension, or refusal to renew the 14 authority of the partnership or any partner, the limited liability company or a member, 15 [OR] the corporation or a shareholder, or the other legal entity to practice public 16 accounting in another state for any cause other than failure to pay a required fee in that 17 state. 18 * Sec. 32. AS 08.04.490 is amended to read: 19 Sec. 08.04.490. Reinstatement. Upon application in writing and after a 20 hearing, the board may issue a new license or practice privilege [CERTIFICATE] to 21 an individual [A CERTIFIED PUBLIC ACCOUNTANT] whose license or practice 22 privilege [CERTIFICATE] has been revoked, or may issue a new permit to a person 23 [REREGISTRATION OF ONE] whose permit [REGISTRATION] has been revoked, 24 or may modify the suspension of or may reissue any [CERTIFICATE,] license, 25 practice privilege, or permit to practice public accounting that has been revoked or 26 suspended. 27 * Sec. 33. AS 08.04.495 is amended to read: 28 Sec. 08.04.495. Fees. The Department of Commerce, Community, and 29 Economic Development shall set fees under AS 08.01.065 for examinations, 30 reexaminations, permits, licenses, and practice privileges [CERTIFICATES, AND 31 REGISTRATIONS].
01 * Sec. 34. AS 08.04.500 is amended to read: 02 Sec. 08.04.500. Individual posing as a certified public accountant. (a) An 03 individual [A PERSON] may not assume or use the title or designation "certified 04 public accountant" or the abbreviation "CPA" or any other title, designation, word, 05 letter, abbreviation, sign, card, or device tending to indicate that the individual 06 [PERSON] is a certified public accountant, unless the individual [PERSON] has 07 received a license [CERTIFICATE, HOLDS A LIVE PERMIT,] and all of the 08 individual's [PERSON'S] offices in this state for the practice of public accounting are 09 maintained as required by AS 08.04.360 - 08.04.380. 10 (b) This section does not prohibit an individual [A CERTIFIED PUBLIC 11 ACCOUNTANT] in good standing in any state holding a practice privilege 12 [PERMIT] under AS 08.04.420 from using the title "certified public accountant." [.] 13 * Sec. 35. AS 08.04.505 is amended to read: 14 Sec. 08.04.505. Issuance of reports. Only a person who [OR FIRM THAT] 15 holds a valid license, practice privilege, or permit issued under this chapter may issue 16 a report on financial statements of another person [, FIRM, ORGANIZATION,] or 17 governmental unit. This restriction does not apply to 18 (1) an officer, partner, member, or employee of a sole proprietorship, 19 partnership, corporation, limited liability company, or other legal entity [FIRM 20 OR ORGANIZATION] affixing that person's signature to a statement or report in 21 reference to the financial affairs of the sole proprietorship, partnership, 22 corporation, limited liability company, or other legal entity [FIRM OR 23 ORGANIZATION] with wording designating the position, title, or office that the 24 person holds in the sole proprietorship, partnership, corporation, limited liability 25 company, or other legal entity [FIRM OR ORGANIZATION]; 26 (2) an act of a public official or employee in the performance of 27 official duties; 28 (3) the performance by persons of other services involving the use of 29 accounting skills, including the preparation of tax returns, management advisory 30 services, and the preparation of financial statements without the issuance of reports on 31 them.
01 * Sec. 36. AS 08.04.510 is amended to read: 02 Sec. 08.04.510. Partnership, limited liability company, [OR] corporation, 03 or other entity posing as a certified public accountant. (a) A partnership, limited 04 liability company, [OR] corporation, or other entity may not assume or use the title 05 or designation "certified public accountant" or the abbreviation "CPA" or any other 06 title, designation, word, letter, abbreviation, sign, card, or device tending to indicate 07 that it is composed of certified public accountants, unless the partnership, limited 08 liability company, [OR] corporation, or other entity [IS REGISTERED AND] holds a 09 [LIVE] permit, is engaging in the practice of public accounting [PRACTICING] 10 under the [ITS REGISTERED] name on its permit, and its offices in this state for the 11 practice of public accounting are maintained as required 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. 37. 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 current license, practice 24 privilege, or [LIVE] permit and the individual's [PERSON'S] offices in this state for 25 the practice of public accounting are maintained as required by AS 08.04.360 - 26 08.04.380. 27 * Sec. 38. AS 08.04.530 is amended to read: 28 Sec. 08.04.530. Partnership, limited liability company, or corporation 29 posing as public accountant. A partnership, limited liability company, or corporation 30 may not assume or use the designation "public accountant" or the abbreviation "PA" 31 or any other title, designation, word, letter, abbreviation, sign, card, or device tending
01 to indicate that the partnership, limited liability company, or corporation is composed 02 of public accountants, unless the partnership, limited liability company, or corporation 03 holds a current [LIVE] permit, is practicing under the name on its [REGISTERED 04 NAME] permit, and its office in this state for the practice of public accounting is 05 maintained as required by AS 08.04.360 - 08.04.380. 06 * Sec. 39. AS 08.04.540 is amended to read: 07 Sec. 08.04.540. Use of deceptive title or abbreviation. An individual, 08 partnership, limited liability company, [OR] corporation, or other entity may not 09 assume or use the title or designation "certified accountant," [,] "chartered 10 accountant," [,] "enrolled accountant," [,] "licensed accountant," [,] "registered 11 accountant," [,] or any other title or designation likely to be confused with "certified 12 public accountant" or "public accountant," [,] or any of the abbreviations "C," [,] 13 "EA," [,] "LA," [,] "RA," [,] or similar abbreviations likely to be confused with "CPA" 14 or "PA" except that "EA" may be used to the extent that it relates to the term "enrolled 15 agent" as defined by the federal Internal Revenue Service; however, an individual, 16 partnership, limited liability company, [OR] corporation, or other legal entity holding 17 a current license, [LIVE] permit under AS 08.04.240, or practice privilege and 18 whose offices in this state for the practice of public accounting are maintained as 19 required by AS 08.04.360 - 08.04.380 may hold out to the public as an accountant or 20 auditor. 21 * Sec. 40. AS 08.04.560 is amended to read: 22 Sec. 08.04.560. Individual may not assume title. An individual [A 23 PERSON] may not sign or affix any name or any trade or assumed name used by that 24 individual [PERSON] to any accounting or financial statement [,] or opinion or report 25 on any accounting or financial statement with any wording indicating that the person 26 is a certified public accountant or public accountant or with any wording indicating 27 that the person has expert knowledge in accounting or auditing, unless the individual 28 [PERSON] holds a current license or practice privilege [LIVE PERMIT] and the 29 individual's [PERSON'S] offices in this state for the practice of public accounting are 30 maintained as required by AS 08.04.360 - 08.04.380. 31 * Sec. 41. AS 08.04.580 is amended to read:
01 Sec. 08.04.580. Partnership posing as accountants or auditors. A person 02 may not sign or affix a partnership name to any accounting or financial statement [,] or 03 opinion or report on any accounting or financial statement with any wording 04 indicating that it is a partnership composed of certified public accountants or public 05 accountants or with any wording indicating that the partnership has expert knowledge 06 in accounting or auditing unless the partnership holds a current [LIVE] permit, it is 07 practicing under the [ITS REGISTERED] name on its permit, and its offices in this 08 state for the practice of public accounting are maintained as required by AS 08.04.360 09 - 08.04.380. 10 * Sec. 42. AS 08.04.590 is amended to read: 11 Sec. 08.04.590. Use of title with corporate name. A person may not sign or 12 affix a corporate name to any accounting or financial statement [,] or opinion or report 13 on any accounting or financial statement with any wording indicating that it is a 14 corporation composed of certified public accountants or public accountants or with 15 any wording indicating that the corporation has expert knowledge in accounting or 16 auditing unless the corporation holds a current [LIVE] permit, it is practicing under 17 the [ITS REGISTERED] name on the permit, and its offices in this state for the 18 practice of public accounting are maintained as required by AS 08.04.360 - 08.04.380. 19 * Sec. 43. AS 08.04.595 is amended to read: 20 Sec. 08.04.595. Use of title with limited liability company name. A person 21 may not sign or affix a limited liability company name to an accounting or financial 22 statement, or opinion or report on an accounting or financial statement, with wording 23 indicating that the person is a limited liability company composed of certified public 24 accountants or public accountants or with wording indicating that the company has 25 expert knowledge in accounting or auditing unless the company holds a current 26 [LIVE] permit, it is practicing under the [ITS REGISTERED] name on the permit, 27 and its offices in this state for the practice of public accounting are maintained as 28 required by AS 08.04.360 - 08.04.380. 29 * Sec. 44. AS 08.04 is amended by adding a new section to read: 30 Sec. 08.04.598. Use of title with name of other entity. A person may not sign 31 or affix the name of an entity to an accounting or financial statement or opinion or
01 report on an accounting or financial statement with wording indicating that the person 02 is a legal entity composed of certified public accountants or public accountants or with 03 wording indicating that the entity has expert knowledge in accounting or auditing 04 unless the entity holds a current permit, it is practicing under the name on the permit, 05 and its offices in this state for the practice of public accounting are maintained as 06 required by AS 08.04.360 - 08.04.380. 07 * Sec. 45. AS 08.04.600 is amended to read: 08 Sec. 08.04.600. Disclosure of lack of license or permit. An individual, 09 partnership, limited liability company, [OR] corporation, or other entity that does not 10 hold a current license, a current practice privilege, or a current [LIVE] permit 11 may not hold out to the public as a certified public accountant or public accountant by 12 use of such words or abbreviations on any sign, card, letterhead, or in any 13 advertisement or directory, without indicating that the individual, partnership, limited 14 liability company, [OR] corporation, or other entity does not hold a current license, 15 a current practice privilege, or a current permit. This section does not prohibit 16 (1) an officer, employee, partner, member, or principal of an 17 organization from self-description through the position, title, or office that the person 18 holds in the organization; 19 (2) an act of a public official or public employee in the performance of 20 that individual's duties; or 21 (3) a person from maintaining a bookkeeping or tax service. 22 * Sec. 46. AS 08.04.610 is amended to read: 23 Sec. 08.04.610. Deceptive use of title or designation by partnership, limited 24 liability company, [OR] corporation [TITLE], or other entity. A person may not 25 assume or use the title or designation "certified public accountant" or "public 26 accountant" or an abbreviation of them, in conjunction with a name indicating or 27 implying that there is a partnership, limited liability company, [OR] corporation, or 28 other entity, or in conjunction with the designation "and Company," "and Co.," 29 "L.L.C.," "LLC," "Ltd.," or any similar designation unless there is a bona fide 30 partnership, limited liability company, [OR] corporation, or other legal entity 31 holding a permit issued [REGISTERED] under that name. However, a sole
01 proprietor or partnership lawfully using the title or designation "certified public 02 accountant" or "public accountant" or an abbreviation of them in conjunction with 03 such names or designation on April 26, 1960, may continue to do so if the person or 04 partnership otherwise complies with this chapter. 05 * Sec. 47. AS 08.04.620 is amended to read: 06 Sec. 08.04.620. Exceptions. This chapter does not prohibit 07 (1) an individual who does [A PERSON] not hold a current license 08 or practice privilege [A CERTIFIED PUBLIC ACCOUNTANT OR PUBLIC 09 ACCOUNTANT] from serving as an employee of or as an assistant to an individual, 10 partnership, limited liability company, [OR] corporation, or other legal entity holding 11 a current license, a current practice privilege, or a current [LIVE] permit so long 12 as the employee or assistant does not use the employee's or the assistant's name in 13 connection with an accounting or financial statement; 14 (2) an individual who holds a valid license or equivalent 15 authorization in another state [A CERTIFIED PUBLIC ACCOUNTANT OR 16 PUBLIC ACCOUNTANT] from indicating that the individual is entitled to use the 17 title "certified public accountant" [OR PUBLIC ACCOUNTANT HOLDS A 18 CERTIFICATE OR LICENSE ENTITLING THE CERTIFIED PUBLIC 19 ACCOUNTANT OR PUBLIC ACCOUNTANT TO THAT DESIGNATION IF THE 20 CERTIFIED PUBLIC ACCOUNTANT OR PUBLIC ACCOUNTANT HOLDS A 21 VALID CERTIFICATE OR LICENSE IN ANY STATE], but the individual 22 [PERSON] may not indicate that services are available to the public unless the 23 individual [CERTIFIED PUBLIC ACCOUNTANT OR PUBLIC ACCOUNTANT] 24 holds a current license or practice privilege [LIVE PERMIT] issued under this 25 chapter; 26 (3) a holder of a certificate, license, or degree from a foreign country 27 that [WHICH] constitutes a recognized qualification for the practice of public 28 accounting in that country from indicating that the person holds the certificate, license, 29 or degree, but the person may not indicate that the person's services are available to 30 the public unless the person holds a current license, practice privilege, or [LIVE] 31 permit issued under this chapter.
01 * Sec. 48. AS 08.04.640 is amended to read: 02 Sec. 08.04.640. Penalty. A person who violates a provision of AS 08.04.500 - 03 08.04.610 is guilty of a misdemeanor and upon conviction is punishable by a fine of 04 not more than $500, or by imprisonment for not more than one year, or by both. 05 [WHENEVER THE BOARD HAS REASON TO BELIEVE THAT A PERSON HAS 06 VIOLATED A PROVISION OF AS 08.04.500 - 08.04.610 IT MAY CERTIFY THE 07 FACTS TO THE ATTORNEY GENERAL OF THIS STATE OR OTHER 08 APPROPRIATE ENFORCEMENT OFFICER, WHO MAY CAUSE APPROPRIATE 09 PROCEEDINGS TO BE BROUGHT.] 10 * Sec. 49. AS 08.04.660 is amended to read: 11 Sec. 08.04.660. Ownership of accountant's working papers. Statements, 12 records, schedules, working papers, and memoranda made by a certified public 13 accountant or a [,] public accountant [, OR REGISTERED FOREIGN 14 ACCOUNTANT] incident to or in the course of professional service to a client, except 15 reports submitted to a client, are the property of the accountant, in the absence of an 16 express agreement between the accountant and the client to the contrary. A statement, 17 record, schedule, working paper, or memorandum may not be sold, transferred, or 18 bequeathed to a person other than a partner of the accountant without the consent of 19 the client or the client's personal representative or assignee. 20 * Sec. 50. 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. 51. AS 08.04.662(a) is amended to read: 29 (a) A license holder, a permit holder, a practice privilege holder 30 [LICENSEE], or a partner, an officer, a shareholder, a member, or an employee of a 31 license holder, a permit holder, a practice privilege holder [LICENSEE], may not
01 reveal information communicated to the license holder, permit holder, or practice 02 privilege holder [LICENSEE] by a client about a matter concerning which the client 03 has employed the license holder, permit holder, or practice privilege holder 04 [LICENSEE] in a professional capacity. This section does 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 license 09 holder, permit holder, or practice privilege holder [LICENSEE] 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. 52. 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 a certificate granted under AS 08.04.100 24 [AS A CERTIFIED PUBLIC ACCOUNTANT]; 25 (4) "legal entity" means an organization that can organize as a 26 legal person under the laws of this state; 27 (5) [(3)] "license" means a license issued under AS 08.04.105 or 28 08.04.195 [AS A PUBLIC ACCOUNTANT]; 29 (6) [(4)] "limited liability company" means an organization organized 30 under AS 10.50 or a foreign limited liability company; in this paragraph, "foreign 31 limited liability company" has the meaning given in AS 10.50.990;
01 (7) [(5) "LIVE PERMIT" MEANS A PERMIT ISSUED UNDER 02 AS 08.04.390 - 08.04.425; 03 (6)] "member" means a person who has been admitted to membership 04 in a limited liability company; 05 (8) "partnership" means a general partnership, a limited 06 partnership, a limited liability partnership, or another form of partnership; 07 (9) "permit" means a permit issued under AS 08.04.240 or 08 08.04.420; 09 (10) "practice of public accounting" means the offering to perform 10 or the performance as a person holding a license, practice privilege, or permit 11 under this chapter of a service involving the use of accounting or auditing skills; 12 in this paragraph, "accounting or auditing skills" includes preparing financial 13 statements, issuing reports on financial statements, furnishing management 14 services, furnishing financial advisory services, providing consulting services, 15 preparing tax returns, advising on tax matters, or consulting on tax matters; 16 (11) "practice privilege" means a practice privilege authorized 17 under AS 08.04.420; 18 (12) "principal place of business" means the fixed location 19 designated by the partnership, corporation, limited liability company, or other 20 legal entity as the location from which the partnership, corporation, limited 21 liability company, or other legal entity directs, controls, and coordinates the 22 majority of the business activities of the partnership, corporation, limited liability 23 company, or other legal entity; 24 (13) [(7)] "quality review" means a study, appraisal, or review of one 25 or more aspects of the professional work of a person [OR FIRM] in the practice of 26 public accounting [ACCOUNTANCY], by a person [OR PERSONS] who holds a 27 certificate [HOLD CERTIFICATES] and who is [ARE] not affiliated with the person 28 [OR FIRM] being reviewed, conducted as prescribed under AS 08.04.426; 29 (14) [(8)] "report," when used with reference to financial statements, 30 means an opinion, report, or other form of language that states or implies assurance as 31 to the reliability of financial statements and that also includes or is accompanied by a
01 statement or implication that the person [OR FIRM] issuing it has special knowledge 02 or competency in accounting or auditing; a statement or implication of special 03 knowledge or competence may arise from use by the issuer of the report of names or 04 titles indicating that the issuer is a certified public accountant or auditor, or from the 05 language of the report itself; except as provided in this paragraph, "report" includes 06 any form of language that disclaims an opinion when the form of the language is 07 conventionally understood to imply a positive assurance as to the reliability of the 08 financial statements referred to or special competence on the part of the person [OR 09 FIRM] issuing the language; and "report" includes any other form of language that is 10 conventionally understood to imply such assurance or such special knowledge or 11 competence; "report" does not include 12 (A) a compilation of financial statement language that does not 13 express or imply assurance or special knowledge or competence; or 14 (B) the following disclaimer language when used by 15 nonlicensees in connection with financial statements: 16 (i) "I (we) have prepared the accompanying 17 (financial statements) of (name of entity) as of (time period) for the 18 (period) then ended. This presentation is limited to preparing, in 19 the form of financial statements, information that is the 20 representation of management (owners)."; or 21 (ii) "I (we) have not audited or reviewed the 22 accompanying financial statements and, accordingly, do not 23 express an opinion or any other form of assurance on them."; 24 (15) "state" means a state of the United States, the District of 25 Columbia, the Commonwealth of Puerto Rico, Guam, the Virgin Islands, and 26 American Samoa. 27 * Sec. 53. AS 08.04.070(d), 08.04.070(e), 08.04.390, 08.04.400, and 08.04.460 are repealed. 28 * Sec. 54. The uncodified law of the State of Alaska is amended by adding a new section to 29 read: 30 TRANSITIONAL PROVISIONS: REGULATIONS. The Board of Public 31 Accountancy created under AS 08.04.010 may proceed to adopt regulations necessary to
01 implement this Act. The regulations take effect under AS 44.62 (Administrative Procedure 02 Act), but not before the effective date of secs. 1 - 53 of this Act. 03 * Sec. 55. The uncodified law of the State of Alaska is amended by adding a new section to 04 read: 05 TRANSITIONAL PROVISIONS: EFFECT ON CURRENT PERMITTEES. (a) On 06 and after January 1, 2008, a person with a current permit issued under AS 08.04, as that 07 chapter existed before January 1, 2008, may continue to operate under the permit until the 08 permit expires normally under AS 08.04, as that chapter existed before January 1, 2008, and 09 then receive a renewal under AS 08.04, as that chapter exists on and after January 1, 2008. 10 (b) Until an individual who is eligible for the renewal of a license under (a) of this 11 section receives a license renewal under (a) of this section, the individual satisfies the license 12 requirement of AS 06.26.020(a)(9), as amended by sec. 1 of this Act, even though the 13 individual is holding a permit under AS 08.04 as that chapter existed before January 1, 2008, 14 and not the license required by AS 06.26.020(a)(9). In this section, "license" has the meaning 15 given in AS 08.04.680. 16 * Sec. 56. The uncodified law of the State of Alaska is amended by adding a new section to 17 read: 18 TRANSITIONAL PROVISIONS: MEMBERSHIP OF BOARD. AS 08.04.020, as 19 amended by sec. 3 of this Act, does not apply to a member of the Board of Public 20 Accountancy who is a member of the Board of Public Accountancy on the effective date of 21 this section until the term of the board member expires normally under former AS 08.04.020, 22 as that section existed before January 1, 2008. 23 * Sec. 57. Section 54 of this Act takes effect immediately under AS 01.10.070(c). 24 * Sec. 58. Except as provided in sec. 57 of this Act, this Act takes effect January 1, 2008.