04/01/2008 01:30 PM Senate LABOR & COMMERCE

               HB 379-CPA EDUCATION REQUIREMENTS                                                                            
                                                                                                                              
2:30:23 PM                                                                                                                    
CHAIR ELLIS announced HB 379 to be up for consideration.                                                                        
                                                                                                                                
REPRESENTATIVE  MIKE HAWKER,  sponsor  of HB  379 explained  that                                                               
this measure  is really  a piece  of ministerial  legislation. In                                                               
2006  the legislature  passed a  fairly  substantial updating  of                                                               
Alaska framework  for licensing  of certified  public accountants                                                               
                                                   st                                                                           
(CPA).  The state  is moving  slowing into  the  21  Century  and                                                               
being in  conformance with a  consistent best  practices approach                                                               
across  the   nation  for  the  licensing   of  certified  public                                                               
accountants.                                                                                                                    
                                                                                                                                
One  of the  adopted provisions  was  a change  in the  education                                                               
requirements to receive a CPA  certificate. Prior to the adoption                                                               
of  the changes  two  years ago,  a person  could  receive a  CPA                                                               
certificate  if  they  passed the  examination  and  met  certain                                                               
experience  requirements,   but  at  issue  are   the  scholastic                                                               
requirements. Prior  to passage of  the bills, the state  had two                                                               
acceptable  methods to  satisfy the  education requirements.  One                                                               
was that an individual had  an accounting degree and subsequently                                                               
spent two  years working under appropriate  conditions supervised                                                               
as  an  accountant.  Alternatively  the state  would  accept  any                                                               
degree, such  as an MBA or  Finance, from someone who  had worked                                                               
for  three  years  and  had  an  additional  year  of  experience                                                               
substituting  for  the  specific  accounting  degree.  That  bill                                                               
eliminated the three-year-of-any-degree  provision and said CPA's                                                               
really  should have  an accounting  degree -  without a  doubt an                                                               
excellent practice.  The new educations requirements  took effect                                                               
on January 1,  2008; however they didn't  take into consideration                                                               
the  number  of accountants  who  had  graduated with  the  other                                                               
experience requirement prior  to that date and were  working on a                                                               
three-year experience program under  supervision. Those folks are                                                               
denied the  ability to  receive a  CPA certificate  without going                                                               
back and getting an accounting  degree. This measure grandfathers                                                               
them in and  allows them to continue  their three-year experience                                                               
program without  having a specific accounting  degree. This issue                                                               
was brought to him by the Alaska State Board of Accountancy.                                                                    
                                                                                                                                
2:34:44 PM                                                                                                                    
MAX MERTZ, Chair,  Board of Accountancy, supported HB  379. It is                                                               
very  timely as  the  board  is in  the  process of  promulgating                                                               
regulations.                                                                                                                    
                                                                                                                                
CHAIR ELLIS said he was committed  to holding HB 379 for a second                                                               
hearing.