05/14/2025 01:30 PM Senate LABOR & COMMERCE

              HB 121-ACCOUNTING; PRACTICE PRIVILEGE                                                                         
                                                                                                                              
           [SCS HB 121(STA) was before the committee.]                                                                          
                                                                                                                                
2:31:42 PM                                                                                                                    
CHAIR   BJORKMAN  reconvened   the  meeting   and  announced   the                                                              
consideration  of HOUSE  BILL  NO.  121 "An  Act  relating to  the                                                              
practice of accounting; and providing for an effective date."                                                                   
                                                                                                                                
2:32:17 PM                                                                                                                    
AMANDA NDEMO, Staff,  Representative Calvin Schrage,  Alaska State                                                              
Legislature,  Juneau, Alaska,  read the sponsor  statement  for HB
:                                                                                                                            
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
       "An Act relating to the practice of accounting; and                                                                      
                providing for an effective date."                                                                               
                                                                                                                                
     The  accounting  profession  is  essential  to  Alaska's                                                                   
     economy,    ensuring    financial    transparency    for                                                                   
     businesses,  organizations,   and  government  entities.                                                                   
     However, outdated  regulatory barriers are  limiting the                                                                   
     number  of qualified professionals  entering the  field.                                                                   
     The demand  for accountants is growing  nationwide, with                                                                   
     employment  in  the  field expected  to  increase  by  6                                                                   
     percent  over the next  decade. However,  the number  of                                                                   
     CPA's  practicing   in  Alaska  is  shrinking.   Between                                                                   
     fiscal years  2019 and 2024, CPA licensure  in the state                                                                   
     grew  by  only  3  percent.  If  this  trend  continues,                                                                   
     Alaska  will face  a  worsening shortage  of  accounting                                                                   
     professionals,  limiting access  to essential  financial                                                                   
     services.                                                                                                                  
                                                                                                                                
2:33:22 PM                                                                                                                    
MS. NDEMO continued with the sponsor statement:                                                                                 
                                                                                                                                
     HB 121 addresses these issues by:                                                                                          
                                                                                                                                
     •   Making  technical   and   housekeeping  changes   to                                                                   
     practice  privilege  for  out-of-state  firms  to  allow                                                                   
     them greater flexibility.                                                                                                  
                                                                                                                                
     •  Removing the  outdated and  onerous requirement  that                                                                   
     students complete  an extra year of college,  beyond the                                                                   
     120-credit hour  bachelor's degree with  a concentration                                                                   
     in accounting.                                                                                                             
                                                                                                                                
     •  Permitting  CPAs  to  more   easily  become  licensed                                                                   
     conservators  and remove  the  burden  of maintaining  a                                                                   
     guardianship  certification  in  addition to  their  CPA                                                                   
     license.                                                                                                                   
                                                                                                                                
     These changes  align Alaska with national  trends toward                                                                   
     greater flexibility  in CPA licensure while  maintaining                                                                   
     professional   integrity.  Candidates   will  still   be                                                                   
     required to  pass the Uniform  CPA Exam, meet  education                                                                   
     and  professional   experience  requirements,   ensuring                                                                   
     competency   without  imposing   unnecessary  costs.   I                                                                   
     encourage  my  colleagues  to   support  this  important                                                                   
     legislation.                                                                                                               
                                                                                                                                
2:35:08 PM                                                                                                                    
CHAIR BJORKMAN announced invited testimony on HB 121.                                                                           
                                                                                                                                
2:35:18 PM                                                                                                                    
BETH  STUART, Chair,  Alaska State  Board  of Public  Accountancy,                                                              
Anchorage, Alaska,  testified by invitation on HB  121. She stated                                                              
that when  she earned  her CPA license,  150 credit hours  weren't                                                              
required,  just a  bachelor's degree,  passing the  CPA exam,  and                                                              
work  experience.   HB  121  would  remove  the   extra  30-credit                                                              
requirement,  which can  include  any courses,  to encourage  more                                                              
students  to pursue  accounting and  address workforce  shortages.                                                              
HB 121  also aligns  Alaska's firm  mobility laws with  individual                                                              
mobility laws for consistency.                                                                                                  
                                                                                                                                
2:38:22 PM                                                                                                                    
KAREN BREWER-TARVER,  Chair, Alaska  Society of CPA's  Legislative                                                              
Committee,  Juneau, Alaska,  testified  by invitation  on HB  121.                                                              
She said the Alaska  State Society of CPAs supports  HB 121, which                                                              
removes  the  extra  30-credit  requirement   for  CPA  licensure,                                                              
making  it easier  and more  affordable for  candidates to  become                                                              
CPAs  and addressing  the shortage  of  qualified accountants.  HB
  also modernizes  firm  mobility laws,  allowing  out-of-state                                                              
CPA   firms   to   serve   Alaska   clients   without   burdensome                                                              
registration while maintaining state oversight and protections.                                                                 
                                                                                                                                
2:42:45 PM                                                                                                                    
CHAIR BJORKMAN held HB 121 in committee.