Brief Description: The Board of Public Accountancy proposes an update to various regulations relating to the current publication dates for AICPA Code of Professional Standards and Standards for Performing and Reporting on Peer Reviews, National State Auditors Association (NSAA) Peer Review Manual adopted by reference; proposed updates to language to clarify individual license and firm permit requirements, examination requirements, continuing education sections, inactive licenses, a simplification of peer review process, to include an overall clean-up of regulations to repeal sections that are no longer needed and conforming updates to various sections implementing statutory changes to AS 08.04 under 1 Chapter 5 SLA 2022 (HB44).
The Board of Public Accountancy (Board) proposes to adopt regulation changes in Title 12, Chapter 04 of the Alaska Administrative Code dealing with numerous sections of the regulations to including the following:
- Article I. Rules of Professional Conduct (12 AAC 04.004 – 12 AAC 04.120) is proposed to be amended to update outdated section references and current publication dates for the Code of Professional Conduct of the AICPA Professional Standards, adopted by reference.
- Article II. The Board (12 AAC 04.130 – 12 AAC 04.145) is proposed to be amended to update professional terminology to align with nationwide industry standards and provide clarification regarding special meetings of the board.
- Article III. License and License Renewal Requirements (12 AAC 04.150 – 12 AAC 04.189) is proposed to be amended to provide clarification regarding the licensure requirements for individuals, including the addition of background checks and confirming the board’s authority to use its discretion in accepting an education from a board approved a college or university on application for a license.
- Article IV. Examination (12 AAC 04.190 – 12 AAC 04.235) is proposed to be amended to update the length of time an exam candidate has to pass the CPA examination and provide clarification regrading when a score extension request can be made.
- Article V. Permits and Practice Privileges (12 AAC 04.240 – 12 AAC 04.285) is proposed to be amended adding clarity regarding the instances when a firm must obtain a permit in the state, updating redundant wording to remove references to "out of state permit" and insert a new definition of "firm" with conforming language implementing statutory changes to AS 08.04 under 1 Chapter 5 SLA 2022 (HB44).
- Article VI. Continuing Education (12 AAC 04.300 – 12 AAC 04.440) is proposed to be amended to provide clarity regarding the purpose of continuing education, confirmation of approved subjects, and including a provision regarding inactive CPAs and how they are allowed to hold themselves out.Terminology has been updated to current industry standards and regulations referenced have been updated.
- Article VII. Disciplinary Guidelines (12 AAC 04.500 – 12 AAC 04.530) is proposed to be amended to update out of date terminology and publication dates for adopted reference materials to align with industry standards, to also include technical edits and updates to statutory and regulatory citations throughout.
- Article VIII. Quality Review (12 AAC 04.600 – 12 AAC 04.690) is proposed to be amended updating wording with current industry terminology, replacing all references to “quality review” with “peer review.”Sections within this article have been repealed and amended to reflect current publication dates and to remove any unnecessary language.
You may comment on the proposed regulation changes, including the potential costs to private persons of complying with the proposed changes, by submitting written comments to Alison Osborne, Regulations Specialist, Division of Corporations, Business and Professional Licensing, P.O. Box 110806, Juneau, AK 99811-0806. Additionally, the Board will accept comments by facsimile at (907) 465-2974 and by electronic mail at RegulationsAndPublicComment@alaska.gov. Comments may also be submitted through the Alaska Online Public Notice System by accessing this notice on the system at http://notice.alaska.gov/213755 and using the comment link. The comments must be received not later than 4:30 p.m. on February 5, 2024. Comments received after this deadline will not be considered by the Board.
You may submit written questions relevant to the proposed action to Alison Osborne, Regulations Specialist, Division of Corporations, Business and Professional Licensing, P.O. Box 110806, Juneau, AK 99811-0806 or by e-mail at RegulationsAndPublicComment@alaska.gov. The questions must be received at least 10 days before the end of the public comment period. The Board will aggregate its response to substantially similar questions and make the questions and responses available on the Alaska Online Public Notice System and on the Board’s website at https://www.commerce.alaska.gov/web/cbpl/ProfessionalLicensing/BoardofPublicAccountancy.aspx.
If you are a person with a disability who needs a special accommodation in order to participate in this process, please contact Alison Osborne at (907) 465-6826 or RegulationsAndPublicComment@alaska.gov not later than January 29, 2024 to ensure that any necessary accommodation can be provided.
A copy of the proposed regulation changes is available on the Alaska Online Public Notice System and by contacting Alison Osborne at (907) 465-6826, RegulationsAndPublicComment@alaska.gov, or at https://www.commerce.alaska.gov/web/portals/5/pub/CPA-0523.pdf.
A copy of material proposed for adoption by reference is available on the Alaska Online Public Notice System and on the Board’s website at https://www.commerce.alaska.gov/web/cbpl/ProfessionalLicensing/BoardofPublicAccountancy.aspx.
After the public comment period ends, the Board will either adopt the proposed regulation changes or other provisions dealing with the same subject, without further notice, or decide to take no action. The language of the final regulation may be different from that of the proposed regulation. You should comment during the time allowed if your interests could be affected. Written comments and questions received are public records and are subject to public inspection.
Statutory Authority: AS 08.04.055, AS 08.04.070, AS 08.04.075, AS 08.04.105, AS 08.04.120, AS 08.04.130, AS 08.04.150, AS 08.04.195, AS 08.04.410, AS 08.04.420, AS 08.04.423, AS 08.04.425, AS 08.04.440, AS 08.04.450, AS 08.04.680.
Statutes Being Implemented, Interpreted, or Made Specific: AS 08.04.055, AS 08.04.070, AS 08.04.075, AS 08.04.105, AS 08.04.120, AS 08.04.130, AS 08.04.150, AS 08.04.195, AS 08.04.410, AS 08.04.420, AS 08.04.423, AS 08.04.425, AS 08.04.440, AS 08.04.450, AS 08.04.680
Fiscal Information: The proposed regulation changes are not expected to require an increased appropriation.
For each occupation regulated under the Division of Corporations, Business and Professional Licensing, the Division keeps a list of individuals or organizations who are interested in the regulations of that occupation. The Division automatically sends a Notice of Proposed Regulations to the parties on the appropriate list each time there is a proposed change in an occupation's regulations in Title 12 of the Alaska Administrative Code. If you would like your address added to or removed from such a list, send your request to the Division of Corporations, Business and Professional Licensing, P.O. Box 110806, Juneau, AK 99811-0806, giving your name, either your e-mail address or mailing address (as you prefer for receiving notices), and the occupational area in which you are interested.
DATE: 1/3/2024
Alison Osborne, Regulations Specialist
Division of Corporations, Business and Professional Licensing
ADDITIONAL REGULATION NOTICE INFORMATION
(AS 44.62.190(d))
1. Adopting agency: Board of Public Accountancy - Department of Commerce, Community, and Economic Development, Division of Corporations, Business and Professional Licensing.
2. General subject of regulation: update to various regulations relating to the current publication dates for AICPA Code of Professional Standards and Standards for Performing and Reporting on Peer Reviews, National State Auditors Association (NSAA) Peer Review Manual adopted by reference; proposed updates to language to clarify individual license and firm permit requirements, examination requirements, continuing education sections, inactive licenses, a simplification of peer review process, to include an overall clean-up of regulations to repeal sections that are no longer needed and conforming updates to various sections implementing statutory changes to AS 08.04 under 1 Chapter 5 SLA 2022 (HB44).
3. Citation of regulation: 12 AAC 04.004– 12 AAC 04.990.
4. Department of Law file number: 2023200525.
5. Reason for the proposed action: Update and clarification of current regulations; compliance with state statute.
6. Appropriation/Allocation: Corporations, Business and Professional Licensing – #2360.
7. Estimated annual cost to comply with the proposed action to:
A private person: None known.
Another state agency: None known.
A municipality: None known.
8. Cost of implementation to the state agency and available funding (in thousands of dollars): No costs are expected in FY 2024 or in subsequent years.
9. The name of the contact person for the regulation:
Cori Hondolero, Executive Administrator
Alaska Board of Public Accountancy
Division of Corporations, Business and Professional Licensing
Department of Commerce, Community, and Economic Development
Telephone: (907) 269-4712
E-mail: cori.hondolero@alaska.gov
10. The origin of the proposed action: Staff of state agency.
11. Date: 1/3/2024
Prepared by: Alison Osborne, Regulations Specialist