HOUSE BILL NO. 315 "An Act relating to public accounting; and providing for an effective date." REPRESENTATIVE KURT OLSEN, SPONSOR, introduced his support staff. JENNIFER SENETTE, STAFF, REPRESENTATIVE KURT OLSEN, described the creation and intent of the bill. House Bill 315 was crafted with the help of the Alaska State Board of Public Accountancy and the Alaska Society of Certified Public Accountants (CPA). She stated that the bill would bring Alaska in line with the 45 states that had passed similar versions of the legislation. 1:38:47 PM Ms. Senette relayed that HB 315 would give CPAs mobility, or the ability of a licensee to gain practice privilege outside his principal place of jurisdiction, without additional licensing and fees. This would allow licensed CPAs and CPA firms in Alaska to practice across state jurisdictions with greater ease. The bill would provide for simple majority ownership. Under current state laws Alaskan accounting firms must be owned 100 percent by CPAs, which discounted the evolution of the accounting profession over the years; accounting firms were not only employing CPAs, but Information Technology professionals, lawyers, and other non-CPA professionals. The legislation would dial down the stringent requirements to allow for simple majority ownership. The change would be helpful in attracting and retaining new talent in the state. The legislation would also enhance the board of public accountancies ability to protect the public interest. Under HB 315 the Alaska State Board of Public Accountancy would have automatic jurisdiction over any CPAs practicing in the state. 1:40:48 PM Ms. Senette explained that if a CPA from out-of-state was working in Alaska, the state board of public accountancy had the jurisdiction to address any violations of the standard. Representative Fairclough wondered if accountants in the state could expand multi-nationally. Ms. Senette redirected the question to the CPAs present for questioning. Co-Chair Stoltze opened public testimony. LISA ROGERS, ALASKA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS, ANCHORAGE (via teleconference), testified in support of the legislation. She stated that the bill had generated from conversations among accountants who had worked to draft the legislation. Representative Fairclough wondered about push back from the state of New York, as similar legislation had not been enacted there. 1:45:02 PM Ms. Rogers replied that New York had been slow to adopt changes in the area of public accounting. She did not know why. JULIE OLSEN, PRESIDENT, ALASKA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS, urged support for the legislation. 1:46:40 PM Representative Fairclough reiterated her earlier questions. Ms. Olsen deferred the questions to Max Mertz. 1:47:29 PM MAX MERTZ, BOARD OF PUBLIC ACCOUNTING, JUNEAU, replied that the legislation pertained only to CPAs within the United States and U.S. territories. He furthered that the State of New York had laws on the book relating to public accountancy that dated back to the 19th century that had yet to change. He reiterated that New York had been very slow to change practices concerning public accounting. Representative Fairclough asked for explanation of "practice privilege". Mr. Mertz replied that "practice privilege" was distinguishable from "practice permit". Mr. Mertz explained: "When there is a CPA in Alaska practicing in another mobility state, or from another state practicing here, if they are serving a client that does not have a home office in Alaska, that might have some incidental operations here, and they are based out-of-state, so it's really incidental practices. They can come to Alaska, or over the internet, provide those services without having to come to Alaska and get a practice permit, which is currently required, and will continue to be required, if the client either has a home office here, or the practice is other than incidental. The premise of mobility is to allow this interstate practice without having to go through the process of getting a permit." 1:51:47 PM Representative Austerman wondered if there was a way the bill could allow the state to access out-of-state CPA licensing information, before allowing them to practice in- state. Mr. Mertz said there was a companion bill circulating called the Accountants Licensing Database, which would focus on the issue. 1:53:31 PM Co-Chair Stoltze closed public testimony. Co-Chair Stoltze recognized the zero fiscal note and solicited amendments. 1:54:12 PM Co-Chair Hawker MOVED to REPORT HB315 26-LS130\A from committee. There being no OBJECTION it was so ordered. HB 315 was REPORTED OUT of committee with a "do pass" recommendation and accompanying fiscal note. 1:55:44 PM