HB 121: "An Act relating to the practice of accounting; and providing for an effective date."
00 HOUSE BILL NO. 121 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 08.04.120(a) is amended to read: 04 (a) The education and experience requirements for an applicant are a 05 baccalaureate degree or its equivalent conferred by a college or university acceptable 06 to the board [AND ADDITIONAL SEMESTER HOURS OR POST- 07 BACCALAUREATE STUDY SO THAT THE TOTAL EDUCATIONAL 08 PROGRAM INCLUDES AT LEAST 150 HOURS,] with an accounting concentration 09 or equivalent as determined by the board by regulation to be appropriate [,] and two 10 years of accounting experience satisfactory to the board. 11 * Sec. 2. AS 08.04.240(f) is amended to read: 12 (f) An initial permit issued under (a) [OR (k)] of this section lasts for the 13 remainder of the biennial licensing period during which the initial permit was granted. 14 * Sec. 3. AS 08.04.240(g) is amended to read: 15 (g) The board shall renew a permit granted under (a) [OR (k)] of this section
01 or a renewal issued under this subsection if 02 (1) the permittee maintains all of the licensee's offices that are located 03 in this state as required by AS 08.04.360 and 08.04.370; 04 (2) each individual who is required by (a) [OR (k)] of this section to be 05 a certified public accountant of this state complies with the continuing education 06 requirements of AS 08.04.425 and the peer review requirements of AS 08.04.426; and 07 (3) the permittee complies with the requirements of this chapter. 08 * Sec. 4. AS 08.04.420(a) is amended to read: 09 (a) An individual who does not have a license in this state, [BUT WHO] is 10 licensed to practice public accounting in another state, and whose principal place of 11 business for the practice of public accounting is in the other state may engage in the 12 practice of public accounting in this state under a practice privilege [IF THE STATE 13 IN WHICH THE INDIVIDUAL IS LICENSED TO PRACTICE PUBLIC 14 ACCOUNTING 15 (1) REQUIRES AS A CONDITION OF LICENSURE THAT AN 16 INDIVIDUAL 17 (A) HAVE AT LEAST 150 SEMESTER HOURS OF 18 COLLEGE EDUCATION, INCLUDING A BACCALAUREATE OR 19 HIGHER DEGREE CONFERRED BY A COLLEGE OR UNIVERSITY; 20 (B) ACHIEVE A PASSING GRADE ON THE UNIFORM 21 CERTIFIED PUBLIC ACCOUNTANT EXAMINATION; AND 22 (C) POSSESS AT LEAST ONE YEAR OF EXPERIENCE, 23 WHICH INCLUDES PROVIDING ANY TYPE OF SERVICE OR ADVICE 24 INVOLVING THE USE OF ACCOUNTING, ATTEST, COMPILATION, 25 MANAGEMENT ADVISORY, FINANCIAL ADVISORY, TAX, OR 26 CONSULTING SKILLS; THE EXPERIENCE MAY BE OBTAINED 27 THROUGH PRACTICE WITH THE GOVERNMENT, INDUSTRY, 28 COLLEGES, UNIVERSITIES, OR THE PUBLIC; OR 29 (2) DOES NOT REQUIRE AS A CONDITION OF LICENSURE 30 THAT AN INDIVIDUAL SATISFY THE REQUIREMENTS OF (1) OF THIS 31 SUBSECTION, BUT THE INDIVIDUAL'S QUALIFICATIONS ARE
01 SUBSTANTIALLY EQUIVALENT TO THE REQUIREMENTS OF (1) OF THIS 02 SUBSECTION; HOWEVER, FOR THE PURPOSES OF THIS PARAGRAPH, THE 03 EDUCATION OF AN INDIVIDUAL WHO HOLDS A VALID LICENSE TO 04 PRACTICE PUBLIC ACCOUNTING THAT IS ISSUED BY ANOTHER STATE 05 BEFORE JANUARY 1, 2013, AND WHO PASSES THE UNIFORM CERTIFIED 06 PUBLIC ACCOUNTANT EXAMINATION BEFORE JANUARY 1, 2013, IS 07 EXEMPT FROM THE EDUCATION REQUIREMENT IDENTIFIED IN (1)(A) OF 08 THIS SUBSECTION]. 09 * Sec. 5. AS 08.04.420(c) is amended to read: 10 (c) An individual or firm that [WHO] may engage in the practice of public 11 accounting in this state under [(a) OF] this section is not required to provide a notice 12 to the board, to pay a fee to the board, or to submit documentation to the board in 13 order to engage in the practice of public accounting in this state. The individual or 14 firm [PERSON] may engage in the practice of public accounting by mail, by 15 telephone, by electronic means, or in person. 16 * Sec. 6. AS 08.04.420 is amended by adding new subsections to read: 17 (d) A firm that is more than one-half owned by individuals who are certified 18 public accountants in good standing under this chapter or in another state, has its 19 principal place of business in another state, and does not have an office in the state 20 may engage in the practice of public accounting in the state under a practice privilege. 21 (e) The board may adopt regulations establishing qualifications for an 22 individual or firm to engage in the practice of public accounting under a practice 23 privilege. 24 * Sec. 7. AS 08.04.422 is amended to read: 25 Sec. 08.04.422. Conditions of practice privileges. An individual or firm with 26 a practice privilege that [WHO] engages in the practice of public accounting in the 27 state under the practice privilege [, A FIRM WITH A PERMIT THAT ENGAGES IN 28 THE PRACTICE OF PUBLIC ACCOUNTING IN THIS STATE,] and a firm that 29 hires an individual with a practice privilege shall 30 (1) consent to the personal and subject matter jurisdiction and 31 disciplinary authority of the board;
01 (2) agree to comply with this chapter, including the regulations 02 adopted by the board; 03 (3) agree that the individual or firm will stop offering to engage or 04 engaging in the practice of public accounting, whether individually or on behalf of a 05 firm, if the license from the state of the individual's or firm's principal place of 06 business becomes invalid; and 07 (4) consent to the appointment of the state board that issued the 08 individual's license or firm's authorization to engage in the practice of public 09 accounting in another state as the individual's or firm's agent for service of process 10 in a court action or in another proceeding against the individual or firm that arises out 11 of a transaction or an operation connected with or incidental to the individual's or 12 firm's engagement in the practice of public accounting. 13 * Sec. 8. AS 08.04.480 is amended to read: 14 Sec. 08.04.480. Grounds for discipline of a firm. The board may revoke or 15 suspend the permit or practice privilege of a firm, [MAY REVOKE, SUSPEND, OR] 16 refuse to renew the firm's [ITS] permit, or may censure the firm for any of the causes 17 enumerated in AS 08.04.450 or for any of the following additional causes: 18 (1) the revocation, suspension, or refusal to renew the license or 19 practice privilege of an owner of a firm in this state or in another state; 20 (2) the cancellation, revocation, suspension, or refusal to renew the 21 permit or authority of the firm to practice public accounting in another state for any 22 cause other than failure to pay a required fee in that state. 23 * Sec. 9. AS 08.04.490 is amended to read: 24 Sec. 08.04.490. Reinstatement. Upon application in writing and after a 25 hearing, the board may [ISSUE A NEW LICENSE OR ALLOW A PRACTICE 26 PRIVILEGE TO AN INDIVIDUAL WHOSE LICENSE OR PRACTICE 27 PRIVILEGE HAS BEEN REVOKED, OR MAY ISSUE A NEW PERMIT TO A 28 PERSON WHOSE PERMIT HAS BEEN REVOKED, OR MAY] modify the 29 suspension of or [MAY] reissue a [ANY] license, practice privilege, or permit to 30 practice public accounting that has been revoked or suspended. 31 * Sec. 10. AS 08.04.495 is amended to read:
01 Sec. 08.04.495. Fees. The department shall set fees under AS 08.01.065 for 02 examinations, reexaminations, permits, and licenses [, AND PRACTICE 03 PRIVILEGES]. 04 * Sec. 11. AS 08.04.510(a) is amended to read: 05 (a) A firm may not assume or use the title or designation "certified public 06 accountant" or the abbreviation "CPA" or any other title, designation, word, letter, 07 abbreviation, sign, card, or device tending to indicate that it is composed of certified 08 public accountants, unless the firm 09 (1) holds a permit and is engaging in the practice of public accounting 10 under the name on its permit; or 11 (2) is engaging in the practice of public accounting under a 12 practice privilege. 13 * Sec. 12. AS 08.04.530 is amended to read: 14 Sec. 08.04.530. Firm posing as public accountant. A firm may not assume or 15 use the designation "public accountant" or the abbreviation "PA" or any other title, 16 designation, word, letter, abbreviation, sign, card, or device tending to indicate that the 17 firm is composed of public accountants, unless the firm 18 (1) holds a current permit, is practicing under the name on its permit, 19 and its office in this state for the practice of public accounting is maintained as 20 required by AS 08.04.360 and 08.04.370; or 21 (2) is engaging in the practice of public accounting under a 22 practice privilege. 23 * Sec. 13. AS 08.04.565 is amended to read: 24 Sec. 08.04.565. Prohibited acts. An individual licensed under AS 08.04.105 25 may not perform attest functions through a firm, unless the firm 26 (1) holds a valid permit issued under AS 08.04.240; or 27 (2) is engaging in the practice of public accounting under a 28 practice privilege. 29 * Sec. 14. AS 08.04.240(k) is repealed. 30 * Sec. 15. This Act takes effect January 1, 2026.