STAND. COM. REP. NO.  218-10

Honolulu, Hawaii

                , 2010

RE:   H.B. No. 2827

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Sir:

     Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 2827 entitled:

"A BILL FOR AN ACT RELATING TO PUBLIC ACCOUNTANCY,"

begs leave to report as follows:

     The purpose of this bill is to promote the reliability of information that is used for guidance in financial transactions or for accounting for or assessing the financial status or performance of commercial and noncommercial enterprises by requiring public accountancy firms, as a condition for renewals of permits to practice, to undergo peer review on a periodic basis, following the adoption of rules for peer review and firm permits.

     The Hawaii Society of Certified Public Accountants and numerous concerned individuals supported this bill.  The Hawaii Association of Public Accountants and several concerned individuals opposed this measure.  The Board of Public Accountancy submitted comments.

     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. 2827 and recommends that it pass Second Reading and be referred to the Committee on Finance.

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

____________________________

ROBERT N. HERKES, Chair