05/16/2025 01:30 PM Senate LABOR & COMMERCE

             HB 121-ACCOUNTING; PRACTICE PRIVILEGE                                                                          
                                                                                                                              
          [SCS HB 121(STA) was before the committee.]                                                                           
                                                                                                                                
1:34:48 PM                                                                                                                    
CHAIR BJORKMAN announced the consideration  of HOUSE BILL NO. 121                                                               
"An Act  relating to  the practice  of accounting;  and providing                                                               
for an effective date."                                                                                                         
                                                                                                                                
1:35:14 PM                                                                                                                    
AMANDA NDEMO, Staff, Representative  Calvin Schrage, Alaska State                                                               
Legislature, Juneau, Alaska, provided a brief summary of HB 121:                                                                
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     House  Bill  121   modernizes  Alaska's  CPA  licensure                                                                    
     process   to  help   address  the   state's  accountant                                                                    
     shortage and  align with  national standards.  The bill                                                                    
     reduces the  required education from 150  to 120 credit                                                                    
     hours for CPA candidates,  provided they have two years                                                                    
     of   relevant  experience,   making   the  pathway   to                                                                    
     licensure  more accessible.  It  also updates  practice                                                                    
     privilege  provisions, allowing  qualified out-of-state                                                                    
     CPAs  to   practice  in  Alaska  without   obtaining  a                                                                    
     separate  license. These  changes aim  to increase  the                                                                    
     state's  CPA workforce  while maintaining  professional                                                                    
     standards and supporting economic development.                                                                             
                                                                                                                                
1:36:26 PM                                                                                                                    
CHAIR  BJORKMAN   said  that  he   would  like  to   discuss  the                                                               
differences between the  House and Senate versions of  HB 121 and                                                               
the changes made so far,  including provisions added in the State                                                               
Affairs Committee  to allow  Certified Public  Accountants (CPAs)                                                               
to  serve as  professional conservators.  He asked  Mr. Klein  to                                                               
talk about the provisions added.                                                                                                
                                                                                                                                
1:37:25 PM                                                                                                                    
NOAH  KLEIN,  Associate  Counsel, Alaska  Court  System,  Juneau,                                                               
Alaska, answered  questions about HB  121. He stated that  SB 99,                                                               
now  included in  HB  121, removes  the  requirement for  private                                                               
professional  conservators who  are certified  public accountants                                                               
to  also be  certified as  guardians.  He said  these CPAs  would                                                               
still  need to  complete the  standard conservator  training. The                                                               
court remains neutral, noting that  the change could increase the                                                               
number   of  professional   conservators   by  easing   licensing                                                               
requirements, leaving the policy decision to the legislature.                                                                   
                                                                                                                                
1:39:14 PM                                                                                                                    
CHAIR BJORKMAN  asked him  to explain  the training  or education                                                               
required for  guardianship that  CPAs would  be exempt  from when                                                               
becoming private professional conservators.                                                                                     
                                                                                                                                
1:39:29 PM                                                                                                                    
MR. KLEIN  replied that CPA's  would not take the  20-30 question                                                               
test that licensed guardians are required to take.                                                                              
                                                                                                                                
1:40:28 PM                                                                                                                    
CHAIR  BJORKMAN  asked  what   knowledge  guardians  needed  that                                                               
conservators did not need to fulfill their duties responsibly.                                                                  
                                                                                                                                
1:40:44 PM                                                                                                                    
MR. KLEIN  replied that  it's not  that guardians  need different                                                               
knowledge, but  that their duties  differ. Guardians  oversee all                                                               
aspects   of   a   ward's   life,   including   housing,   living                                                               
arrangements, and  access to  benefits, while  conservators focus                                                               
solely on managing the ward's financial affairs.                                                                                
                                                                                                                                
CHAIR BJORKMAN asked  for confirmation that 90  percent of people                                                               
with conservatorship would need guardianship status.                                                                            
                                                                                                                                
MR. KLEIN replied that the vast  majority of wards in Alaska have                                                               
a  guardianship and  conservatorship or  just a  guardianship. He                                                               
said  a private  professional  conservator's certification  would                                                               
only apply  to cases  requiring conservatorship;  if guardianship                                                               
were  also  needed,  the guardianship  requirements  would  still                                                               
apply.                                                                                                                          
                                                                                                                                
CHAIR  BJORKMAN  asked whether  the  policy  question before  the                                                               
committee  is  whether  CPAs  should   be  allowed  to  serve  as                                                               
guardians without taking the guardianship test.                                                                                 
                                                                                                                                
1:42:24 PM                                                                                                                    
MR.  KLEIN  replied  that  he  would phrase  it  as  whether  the                                                               
legislature  believes   CPAs  should  be  allowed   to  serve  as                                                               
conservators without  taking the  guardianship test,  while still                                                               
completing the required training  that family member conservators                                                               
currently undergo.                                                                                                              
                                                                                                                                
1:42:52 PM                                                                                                                    
CHAIR  BJORKMAN asked  whether SB  99 would  prohibit a  CPA from                                                               
serving as a guardian.                                                                                                          
                                                                                                                                
MR. KLEIN replied that a  certified public accountant (CPA) could                                                               
serve as a guardian after  completing the additional requirements                                                               
for private professional guardians.                                                                                             
                                                                                                                                
1:43:13 PM                                                                                                                    
SENATOR  GRAY-JACKSON  asked  if   guardianship  was  even  being                                                               
considered.   She  thought   the   discussion   was  only   about                                                               
conservatorship for CPAs.                                                                                                       
                                                                                                                                
1:43:25 PM                                                                                                                    
MR. KLEIN  replied that  guardianship is  part of  the discussion                                                               
because  certification  as  a guardian  currently  includes  both                                                               
guardianship and conservatorship, which  is legally sufficient to                                                               
become a private professional conservator.                                                                                      
                                                                                                                                
1:43:49 PM                                                                                                                    
SENATOR  GRAY-JACKSON asked  if conservators  deal with  finances                                                               
and guardianship deals with everything, including finances.                                                                     
                                                                                                                                
1:43:57 PM                                                                                                                    
MR.  KLEIN replied  that  guardianship covers  all  aspects of  a                                                               
ward's life,  and guardianship certification  tests all  areas of                                                               
responsibility.                                                                                                                 
                                                                                                                                
1:44:25 PM                                                                                                                    
CHAIR BJORKMAN opened  public testimony on HB  121; finding none,                                                               
he closed public testimony.                                                                                                     
                                                                                                                                
1:44:59 PM                                                                                                                    
SENATOR DUNBAR stated  that he would prefer to  advance the State                                                               
Affairs  Committee version,  which  includes the  conservatorship                                                               
portion,  and  move  both  CPA-related  bills  simultaneously  to                                                               
achieve some efficiency.                                                                                                        
                                                                                                                                
1:45:46 PM                                                                                                                    
CHAIR BJORKMAN stated his agreement.                                                                                            
                                                                                                                                
1:46:14 PM                                                                                                                    
CHAIR BJORKMAN solicited the will of the committee.                                                                             
                                                                                                                                
1:46:16 PM                                                                                                                    
SENATOR MERRICK moved  to report SCS HB 121(STA),  work order 34-                                                               
LS0382\G,  from  committee  with individual  recommendations  and                                                               
attached fiscal note(s).                                                                                                        
                                                                                                                                
1:46:34 PM                                                                                                                    
CHAIR  BJORKMAN  found  no  objection and  SCS  HB  121(STA)  was                                                               
reported from the Senate Labor and Commerce Standing Committee.