STAND. COM. REP. NO. 840

Honolulu, Hawaii

, 2023

RE: H.B. No. 797

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 797 entitled:

"A BILL FOR AN ACT RELATING TO OCCUPATIONAL LICENSURE,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Improve Hawaii consumers' access to qualified certified public accountants, wherever those certified public accountants may reside; and

(2) Protect Hawaii's consumers by granting the Board of Public Accountancy clear disciplinary power over all certified public accountants conducting business in the State.

Your Committee received testimony in support of this measure from Island Plastic Bags, Inc.; CW Associates, CPAs; KPMG LLP; Ernst & Young LLP; Hawaii Society of Certified Public Accountants; and sixteen individuals. Your Committee received testimony in opposition to this measure from the Board of Public Accountancy; Hawaii Association of Public Accountants; Niwao & Roberts, CPAs; Taketa, Iwata, Hara & Associates, LLC; and four individuals.

Your Committee finds that every state, except Hawaii, has enacted a mobility law, which facilitates the ability of consumers and businesses in the State to obtain services from qualified certified public accountants licensed in other states. Your Committee further finds that the lack of a mobility law limits access to qualified accountancy services, especially in certain complex industries, including energy, health care, transportation, and technology. This measure will facilitate the mobility of out-of-state certified public accountants and increase access to quality accountancy services for Hawaii consumers.

Your Committee has amended this measure by:

(1) Deleting language that implied a practice privilege may be renewed; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 797, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 797, H.D. 1, and be placed on the calendar for Third Reading.

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

____________________________

MARK M. NAKASHIMA, Chair