03/09/2006 01:30 PM Senate LABOR & COMMERCE

               CSSSHB 274(FIN)-PUBLIC ACCOUNTANTS                                                                           
                                                                                                                              
CHAIR  CON   BUNDE  announced  CSSSHB   274(FIN)  to  be   up  for                                                              
consideration.                                                                                                                  
                                                                                                                                
REPRESENTATIVE  MIKE HAWKER,  sponsor of  HB 274,  said that  this                                                              
legislation is the  result of a project that was  begun five years                                                              
ago  by the  Alaska Society  of Certified  Public Accountants  and                                                              
the  Alaska  State  Board  of  Public   Accountancy  to  modernize                                                              
Alaska's public  accountancy statutes.  It would move  them toward                                                              
a  national standard  embodied  in  the Uniform  Accountancy  Act,                                                              
which is  draft legislation offered  by the American  Institute of                                                              
Certified  Public  Accountants.  This  draft act  seeks  to  bring                                                              
consistency  and equivalency amongst  different jurisdictions  for                                                              
both  education  and  training   requirements  to  facilitate  the                                                              
practice  of accountancy  in  a  consistent manner  among  states.                                                              
Alaska's CPA  statutes were largely  drafted around 1962  and have                                                              
had very little updating since then.                                                                                            
                                                                                                                                
The  vast majority  of  the changes  in  HB 274  are  ministerial,                                                              
conforming  language that  modernizes  the state's  terms. But  it                                                              
has  a couple  of  very substantial  improvements  in moving  them                                                              
toward  the   national  standards.   It  increases   oversight  of                                                              
accountants, brought  on by issues such  as Enron and a  few other                                                              
places.  This bill  would  make peer  reviews  that are  currently                                                              
optional, mandatory.                                                                                                            
                                                                                                                                
Further,  HB 274  clearly defines  the  requirements for  allowing                                                              
the  practice  of  out-of-state  firms  in  the  state.  They  are                                                              
currently  a  very  vague  set of  provisions.  It  also  conforms                                                              
education requirements  to that  of the national  standards, which                                                              
reduces  the years  of experience  required. He  pointed out  that                                                              
the  bill would  require that  CPAs  have a  degree in  accounting                                                              
where previously  they could  have had a  degree in anything  - as                                                              
long as they could pass the test.                                                                                               
                                                                                                                                
REPRESENTATIVE HAWKER  said this bill  is supported by  the Alaska                                                              
Society  of  CPAs,  Alaska  State Board  of  Accountancy  and  the                                                              
accounting industry in general.                                                                                                 
                                                                                                                                
CHAIR BUNDE  said the  Alaska Society  of Independent  Accountants                                                              
had a question and asked if it still had concerns.                                                                              
                                                                                                                                
REPRESENTATIVE HAWKER  replied that those concerns  were addressed                                                              
in  House Finance  Committee  and  the  Society now  endorses  the                                                              
bill.                                                                                                                           
                                                                                                                                
CHAIR BUNDE asked how someone files a grievance under this bill.                                                                
                                                                                                                                
REPRESENTATIVE  HAWKER  replied  a  person  would  appeal  to  the                                                              
Alaska  State   Board  of  Public   Accountancy,  which   has  the                                                              
regulatory    and    discipline     authority    for    recognized                                                              
practitioners.                                                                                                                  
                                                                                                                                
1:38:29 PM                                                                                                                    
LISA ROGERS,  Alaska Society of  CPAs, said she has  been licensed                                                              
to practice certified  public accounting in Alaska  since 1989 and                                                              
supported  HB  274.  She  has  been   working  on  regulatory  and                                                              
legislative  issues  facing  the  profession  for  at  least  five                                                              
years.  HB 274  provides  a much  needed  update  and revision  to                                                              
those  statutes.  She encouraged  the  committee  to support  this                                                              
bill.                                                                                                                           
                                                                                                                                
DAN KANADY,  Wasilla CPA, supported  HB 274 because it  brings the                                                              
board's  requirements closer  to national  standards. However,  he                                                              
thought  reducing the  experience  requirement from  two years  to                                                              
one year  would allow  easier entry into  the CPA profession.  The                                                              
offsetting  strengths  of  the bill  are  the  150-semester  hours                                                              
education in  accounting with  an accounting  degree and  the peer                                                              
review examination.                                                                                                             
                                                                                                                                
1:43:56 PM                                                                                                                    
CHAIR  BUNDE asked  if people  who  are licensed  CPAs but  didn't                                                              
have a degree would be grandfathered in under their old license.                                                                
                                                                                                                                
REPRESENTATIVE HAWKER replied yes.                                                                                              
                                                                                                                                
CHAIR BUNDE asked if anyone opposed this bill.                                                                                  
                                                                                                                                
REPRESENTATIVE HAWKER replied no.                                                                                               
                                                                                                                                
SENATOR  RALPH  SEEKINS moved  to  report  CSSS HB  274(FIN)  from                                                              
committee  with  individual recommendations  and  attached  fiscal                                                              
note.  Senators  Seekins,  Ben Stevens,  Ellis,  Davis  and  Chair                                                              
Bunde voted yea; and it moved from committee.