STAND. COM. REP. NO. 3573

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.C.R. No. 18
                                        H.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred H.C.R. No. 18, H.D. 1, entitled: 

     "HOUSE CONCURRENT RESOLUTION REQUESTING THE DEVELOPMENT OF
     LEGISLATION FOR THE REGULATION OF THE PROFESSION OF
     CERTIFIED PUBLIC ACCOUNTANCY THAT IS CONSISTENT WITH THE
     STANDARDS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC
     ACCOUNTANTS AND THE UNIFORM ACCOUNTANCY ACT AS RECOMMENDED
     BY THE NATIONAL ASSOCIATION OF STATE BOARDS OF ACCOUNTANCY,"

begs leave to report as follows:

     The purpose of this measure is to facilitate the development
of legislation governing the regulation of certified public
accountants that is consistent with the standards of the national
professional association and uniform law. 

     Testimony on the measure was submitted by the Department of
Commerce and Consumer Affairs, PricewaterhouseCoopers LLP, Hawaii
Accountants Coalition, National Association of Tax Practitioners,
and Hawaii Society of Certified Public Accountants. 

      Your Committee finds that this measure supports current
ongoing efforts by the State, certified public accountants
(CPAs), and tax practitioners to develop proposed legislation
relating to the regulation of CPAs.  

     Your Committee further finds that the licensure of non-CPA
tax practitioners is not contemplated under the proposed
legislation.  Therefore, your Committee notes that in developing

 
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the omnibus legislation, the parties should consider "safe
harbor" language or provisions that would protect non-CPA tax
practitioners from being in violation of the licensing law for
performing certain tasks such as preparing tax statements and
compiling information for CPAs. 

     As affirmed by the record of votes of the members of your
Committee on Commerce and Consumer Protection that is attached to
this report, your Committee concurs with the intent and purpose
of H.C.R. No. 18, H.D. 1, and recommends its adoption.

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



                                   ______________________________
                                   BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair

 
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