STAND. COM. REP. NO.1402

Honolulu, Hawaii

, 2003

RE: H.B. No. 1160

H.D. 1

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred H.B. No. 1160, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE EXAMINATION FOR LICENSURE AS A CERTIFIED PUBLIC ACCOUNTANT,"

begs leave to report as follows:

The purpose of this measure is to allow the Board of Public Accountancy to administer a computer-based certified public accountant licensing examination and to require the use of the American Institute of Certified Public Accountants (AICPA) examination.

Testimony in support of this measure was submitted by the Hawaii Association of Public Accountants, Niwao and Roberts, Horwath Kam and Company, Executive Director and Board of Directors of the Hawaii Society of Certified Public Accountants, Wachi and Watanabe, CPA, Inc., and an individual. The Department of Commerce and Consumer Affairs, Board of Public Accountancy (Board), and an individual testified in opposition to the measure.

Your Committee finds that in the spring of 2004, the AICPA will replace the written Uniform CPA Examination with a computer-based format. This format will enable the examination to be administered more often and more efficiently. This measure authorizes the Board to utilize the AICPA's computer-based examination by repealing the requirement that the licensing examination be in written format.

This measure also mandates the use of the AICPA examination. Your Committee finds that the majority of states do not mandate a specific licensing examination, but provide their respective regulatory bodies with flexibility and discretion in this matter. Therefore, your Committee has amended this measure by replacing its language with the contents of a similar and previously-approved measure, S.B. No. 1313. As amended, this measure allows, but does not require the Board to utilize the AICPA examination.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection and Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1160, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1160, H.D. 1, S.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection and Housing,

____________________________

RON MENOR, Chair