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 121: [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 However, outdated regulatory barriers are limiting the number of qualified professionals entering the field.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 • Removing the outdated and onerous requirement that students complete an extra year of college, beyond the 120-credit hour bachelor's degree with a concentration in accounting.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 121 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.