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.