SCS HB 121(STA): "An Act relating to the practice of accounting; relating to private professional conservators; amending Rule 17(e), Alaska Rules of Probate Procedure; and providing for an effective date."
00 SENATE CS FOR HOUSE BILL NO. 121(STA) 01 "An Act relating to the practice of accounting; relating to private professional 02 conservators; amending Rule 17(e), Alaska Rules of Probate Procedure; and providing 03 for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 08.04.120(a) is amended to read: 06 (a) The education and experience requirements for an applicant are a 07 baccalaureate degree or its equivalent conferred by a college or university acceptable 08 to the board [AND ADDITIONAL SEMESTER HOURS OR POST- 09 BACCALAUREATE STUDY SO THAT THE TOTAL EDUCATIONAL 10 PROGRAM INCLUDES AT LEAST 150 HOURS,] with an accounting concentration 11 or equivalent as determined by the board by regulation to be appropriate [,] and two 12 years of accounting experience satisfactory to the board. 13 * Sec. 2. AS 08.04.240(f) is amended to read: 14 (f) An initial permit issued under (a) [OR (k)] of this section lasts for the
01 remainder of the biennial licensing period during which the initial permit was granted. 02 * Sec. 3. AS 08.04.240(g) is amended to read: 03 (g) The board shall renew a permit granted under (a) [OR (k)] of this section 04 or a renewal issued under this subsection if 05 (1) the permittee maintains all of the licensee's offices that are located 06 in this state as required by AS 08.04.360 and 08.04.370; 07 (2) each individual who is required by (a) [OR (k)] of this section to be 08 a certified public accountant of this state complies with the continuing education 09 requirements of AS 08.04.425 and the peer review requirements of AS 08.04.426; and 10 (3) the permittee complies with the requirements of this chapter. 11 * Sec. 4. AS 08.04.420(a) is amended to read: 12 (a) An individual who does not have a license in this state, [BUT WHO] is 13 licensed to practice public accounting in another state, and whose principal place of 14 business for the practice of public accounting is in the other state may engage in the 15 practice of public accounting in this state under a practice privilege [IF THE STATE 16 IN WHICH THE INDIVIDUAL IS LICENSED TO PRACTICE PUBLIC 17 ACCOUNTING 18 (1) REQUIRES AS A CONDITION OF LICENSURE THAT AN 19 INDIVIDUAL 20 (A) HAVE AT LEAST 150 SEMESTER HOURS OF 21 COLLEGE EDUCATION, INCLUDING A BACCALAUREATE OR 22 HIGHER DEGREE CONFERRED BY A COLLEGE OR UNIVERSITY; 23 (B) ACHIEVE A PASSING GRADE ON THE UNIFORM 24 CERTIFIED PUBLIC ACCOUNTANT EXAMINATION; AND 25 (C) POSSESS AT LEAST ONE YEAR OF EXPERIENCE, 26 WHICH INCLUDES PROVIDING ANY TYPE OF SERVICE OR ADVICE 27 INVOLVING THE USE OF ACCOUNTING, ATTEST, COMPILATION, 28 MANAGEMENT ADVISORY, FINANCIAL ADVISORY, TAX, OR 29 CONSULTING SKILLS; THE EXPERIENCE MAY BE OBTAINED 30 THROUGH PRACTICE WITH THE GOVERNMENT, INDUSTRY, 31 COLLEGES, UNIVERSITIES, OR THE PUBLIC; OR
01 (2) DOES NOT REQUIRE AS A CONDITION OF LICENSURE 02 THAT AN INDIVIDUAL SATISFY THE REQUIREMENTS OF (1) OF THIS 03 SUBSECTION, BUT THE INDIVIDUAL'S QUALIFICATIONS ARE 04 SUBSTANTIALLY EQUIVALENT TO THE REQUIREMENTS OF (1) OF THIS 05 SUBSECTION; HOWEVER, FOR THE PURPOSES OF THIS PARAGRAPH, THE 06 EDUCATION OF AN INDIVIDUAL WHO HOLDS A VALID LICENSE TO 07 PRACTICE PUBLIC ACCOUNTING THAT IS ISSUED BY ANOTHER STATE 08 BEFORE JANUARY 1, 2013, AND WHO PASSES THE UNIFORM CERTIFIED 09 PUBLIC ACCOUNTANT EXAMINATION BEFORE JANUARY 1, 2013, IS 10 EXEMPT FROM THE EDUCATION REQUIREMENT IDENTIFIED IN (1)(A) OF 11 THIS SUBSECTION]. 12 * Sec. 5. AS 08.04.420(c) is amended to read: 13 (c) An individual or firm that [WHO] may engage in the practice of public 14 accounting in this state under [(a) OF] this section is not required to provide a notice 15 to the board, to pay a fee to the board, or to submit documentation to the board in 16 order to engage in the practice of public accounting in this state. The individual or 17 firm [PERSON] may engage in the practice of public accounting by mail, by 18 telephone, by electronic means, or in person. 19 * Sec. 6. AS 08.04.420 is amended by adding new subsections to read: 20 (d) A firm that is more than one-half owned by individuals who are certified 21 public accountants in good standing under this chapter or in another state, has its 22 principal place of business in another state, and does not have an office in the state 23 may engage in the practice of public accounting in the state under a practice privilege. 24 (e) The board may adopt regulations establishing qualifications for an 25 individual or firm to engage in the practice of public accounting under a practice 26 privilege. 27 * Sec. 7. AS 08.04.422 is amended to read: 28 Sec. 08.04.422. Conditions of practice privileges. An individual or firm with 29 a practice privilege that [WHO] engages in the practice of public accounting in the 30 state under the practice privilege [, A FIRM WITH A PERMIT THAT ENGAGES IN 31 THE PRACTICE OF PUBLIC ACCOUNTING IN THIS STATE,] and a firm that
01 hires an individual with a practice privilege shall 02 (1) consent to the personal and subject matter jurisdiction and 03 disciplinary authority of the board; 04 (2) agree to comply with this chapter, including the regulations 05 adopted by the board; 06 (3) agree that the individual or firm will stop offering to engage or 07 engaging in the practice of public accounting, whether individually or on behalf of a 08 firm, if the license from the state of the individual's or firm's principal place of 09 business becomes invalid; and 10 (4) consent to the appointment of the state board that issued the 11 individual's license or firm's authorization to engage in the practice of public 12 accounting in another state as the individual's or firm's agent for service of process 13 in a court action or in another proceeding against the individual or firm that arises out 14 of a transaction or an operation connected with or incidental to the individual's or 15 firm's engagement in the practice of public accounting. 16 * Sec. 8. AS 08.04.480 is amended to read: 17 Sec. 08.04.480. Grounds for discipline of a firm. The board may revoke or 18 suspend the permit or practice privilege of a firm, [MAY REVOKE, SUSPEND, OR] 19 refuse to renew the firm's [ITS] permit, or may censure the firm for any of the causes 20 enumerated in AS 08.04.450 or for any of the following additional causes: 21 (1) the revocation, suspension, or refusal to renew the license or 22 practice privilege of an owner of a firm in this state or in another state; 23 (2) the cancellation, revocation, suspension, or refusal to renew the 24 permit or authority of the firm to practice public accounting in another state for any 25 cause other than failure to pay a required fee in that state. 26 * Sec. 9. AS 08.04.490 is amended to read: 27 Sec. 08.04.490. Reinstatement. Upon application in writing and after a 28 hearing, the board may [ISSUE A NEW LICENSE OR ALLOW A PRACTICE 29 PRIVILEGE TO AN INDIVIDUAL WHOSE LICENSE OR PRACTICE 30 PRIVILEGE HAS BEEN REVOKED, OR MAY ISSUE A NEW PERMIT TO A 31 PERSON WHOSE PERMIT HAS BEEN REVOKED, OR MAY] modify the
01 suspension of or [MAY] reissue a [ANY] license, practice privilege, or permit to 02 practice public accounting that has been revoked or suspended. 03 * Sec. 10. AS 08.04.495 is amended to read: 04 Sec. 08.04.495. Fees. The department shall set fees under AS 08.01.065 for 05 examinations, reexaminations, permits, and licenses [, AND PRACTICE 06 PRIVILEGES]. 07 * Sec. 11. AS 08.04.510(a) is amended to read: 08 (a) A firm may not assume or use the title or designation "certified public 09 accountant" or the abbreviation "CPA" or any other title, designation, word, letter, 10 abbreviation, sign, card, or device tending to indicate that it is composed of certified 11 public accountants, unless the firm 12 (1) holds a permit and is engaging in the practice of public accounting 13 under the name on its permit; or 14 (2) is engaging in the practice of public accounting under a 15 practice privilege. 16 * Sec. 12. AS 08.04.530 is amended to read: 17 Sec. 08.04.530. Firm posing as public accountant. A firm may not assume or 18 use the designation "public accountant" or the abbreviation "PA" or any other title, 19 designation, word, letter, abbreviation, sign, card, or device tending to indicate that the 20 firm is composed of public accountants, unless the firm 21 (1) holds a current permit, is practicing under the name on its permit, 22 and its office in this state for the practice of public accounting is maintained as 23 required by AS 08.04.360 and 08.04.370; or 24 (2) is engaging in the practice of public accounting under a 25 practice privilege. 26 * Sec. 13. AS 08.04.565 is amended to read: 27 Sec. 08.04.565. Prohibited acts. An individual licensed under AS 08.04.105 28 may not perform attest functions through a firm, unless the firm 29 (1) holds a valid permit issued under AS 08.04.240; or 30 (2) is engaging in the practice of public accounting under a 31 practice privilege.
01 * Sec. 14. AS 08.26.030 is amended to read: 02 Sec. 08.26.030. Requirements for private professional conservator license. 03 The department shall issue a private professional conservator license to an individual 04 (1) who is at least 21 years of age; 05 (2) who has obtained a high school diploma, or a general education 06 development diploma or its equivalent; 07 (3) who has six months' employment experience in a position 08 involving financial management, or has at least an associate degree in accounting or a 09 closely related field; 10 (4) who is 11 (A) certified as a guardian by a nationally recognized 12 organization in the field of guardianships; or 13 (B) licensed as a certified public accountant under 14 AS 08.04; 15 (5) whose criminal history record checks under AS 08.26.070 show 16 that the individual has not been convicted of a felony or of a misdemeanor offense in 17 the state or in any other jurisdiction involving fraud, misrepresentation, material 18 omission, misappropriation, theft, conversion, or any other crime that the department 19 determines would affect the individual's ability to provide the services of a conservator 20 competently and safely for the protected person within 10 years before the application; 21 and 22 (6) who satisfies the application requirements of AS 08.26.060. 23 * Sec. 15. AS 08.26.050(a) is amended to read: 24 (a) The department shall issue a temporary license to an individual under 25 AS 08.26.020 [OR 08.26.030] who 26 (1) is not certified by a nationally recognized organization in the field 27 of guardianships at the time of the application but is likely to become certified within 28 one year from the date [OF] the temporary license is issued; [,] and 29 (2) otherwise satisfies the licensing requirements of AS 08.26.020 [OR 30 08.26.030; AND 31 (2) SATISFIES THE APPLICATION REQUIREMENTS OF
01 AS 08.26.060]. 02 * Sec. 16. AS 08.26.050(b) is amended to read: 03 (b) If an [THE] individual with a temporary license under (a) or (d) of this 04 section submits proof of the required certificate or license [CERTIFICATION BY A 05 NATIONALLY RECOGNIZED ORGANIZATION IN THE FIELD OF 06 GUARDIANSHIPS] within one year from the date of the issuance of the temporary 07 license, the department shall issue the individual a license under AS 08.26.020 or 08 08.26.030 without requiring a new application. 09 * Sec. 17. AS 08.26.050 is amended by adding a new subsection to read: 10 (d) The department shall issue a temporary license to an individual under 11 AS 08.26.030 who 12 (1) is not certified by a nationally recognized organization in the field 13 of guardianships or licensed as a certified public accountant under AS 08.04 at the 14 time of the application but is likely to become certified or licensed within one year 15 from the date the temporary license is issued; and 16 (2) otherwise satisfies the licensing requirements of AS 08.26.030. 17 * Sec. 18. AS 08.26.130 is amended to read: 18 Sec. 08.26.130. Grounds for disciplinary action. The department may take 19 disciplinary action against an individual under AS 08.01.075 or refuse to issue or 20 renew a license if the department determines that the individual 21 (1) obtained or attempted to obtain a license under this chapter through 22 deceit, fraud, or intentional misrepresentation; 23 (2) has not complied with the standards of conduct established by the 24 department under AS 13.26.001; 25 (3) forfeited a license in this or another jurisdiction as a result of 26 deceit, fraud, intentional misrepresentation, or professional incompetence; 27 (4) has been found by a court in this state to have engaged in 28 professional misconduct or incompetence; 29 (5) has advertised the individual's services in a false or misleading 30 manner; 31 (6) has been convicted, including a conviction based on a guilty plea or
01 plea of nolo contendere, of a felony or other crime that affects the individual's ability 02 to provide services competently and safely for the ward or protected person; 03 (7) has been found to have abandoned, exploited, abused, or neglected 04 a vulnerable adult; in this paragraph, "vulnerable adult" has the meaning given in 05 AS 47.24.900; 06 (8) has failed to comply with this chapter or with a regulation adopted 07 under this chapter; 08 (9) has continued or attempted to practice after becoming unfit due to 09 professional incompetence; 10 (10) has failed to maintain the certification or licensure required to 11 obtain the individual's license under AS 08.26.020(a)(3) or 08.26.030(4) [BY A 12 NATIONALLY RECOGNIZED ORGANIZATION IN THE FIELD OF 13 (A) GUARDIANSHIPS, IF THE INDIVIDUAL WAS 14 ISSUED A PRIVATE PROFESSIONAL GUARDIAN LICENSE; OR 15 (B) CONSERVATORSHIPS, IF THE INDIVIDUAL WAS 16 ISSUED A PRIVATE PROFESSIONAL CONSERVATOR LICENSE]; or 17 (11) fails to maintain a bond or other surety as required by a court 18 order. 19 * Sec. 19. AS 13.26.465(g) is amended to read: 20 (g) In addition to any other requirement of this section, [WHEN 21 APPOINTING A RELATIVE OR FRIEND OF THE PROTECTED PERSON AS 22 THE CONSERVATOR OF THE PROTECTED PERSON,] the court shall require that 23 a [THE] proposed conservator complete one hour of mandatory education on the 24 basics of conservatorship before the appointment or within 30 days after the 25 appointment if the proposed conservator is a 26 (1) relative or friend of the protected person; or 27 (2) private professional conservator who obtained a private 28 professional conservator license by satisfying the licensure requirement provided 29 under AS 08.26.030(4)(B) and has not previously completed the mandatory 30 education required by the court under this subsection. [IF THE PERSON IS 31 APPOINTED BASED ON THE PERSON'S AGREEMENT TO COMPLETE THE
01 MANDATORY EDUCATION AND THE PERSON FAILS TO COMPLETE THE 02 MANDATORY EDUCATION WITHIN THE 30 DAYS, THE COURT SHALL 03 REMOVE THE CONSERVATOR AND APPOINT A SUCCESSOR.] 04 * Sec. 20. AS 13.26.465 is amended by adding a new subsection to read: 05 (h) If a person is appointed as a conservator based on the person's agreement 06 to complete the mandatory education within 30 days under (g) of this section and the 07 person fails to complete the mandatory education within 30 days, the court shall 08 remove the conservator and appoint a successor. 09 * Sec. 21. The uncodified law of the State of Alaska is amended by adding a new section to 10 read: 11 DIRECT COURT RULE AMENDMENT. Rule 17(e), Alaska Rules of 12 Probate Procedure, is amended to read: 13 (e) Mandatory Education. A person required to complete one hour of 14 mandatory education on the basics of conservatorship under AS 13.26.465(g) 15 [RELATIVE OR FRIEND OF THE PROTECTED PERSON WHO IS APPOINTED 16 AS A CONSERVATOR] must complete the [ONE HOUR OF] mandatory education 17 [ON THE BASICS OF CONSERVATORSHIP] before [THE] appointment or within 18 30 days after [THE] appointment as provided by AS 13.26.465(g). 19 * Sec. 22. AS 08.04.240(k) is repealed. 20 * Sec. 23. Sections 14 - 21 of this Act take effect immediately under AS 01.10.070(c). 21 * Sec. 24. Except as provided in sec. 23 of this Act, this Act takes effect January 1, 2026.