SSCR3625

STAND. COM. REP. NO. 3625

Honolulu, Hawaii

RE: GOV. MSG. NOS. 762, 763

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Health, to which was referred Governor's Message Nos. 762 and 763, submitting for study and consideration the nominations of:

State Board Of Public Accountancy

G.M. No. 762

TERRENCE ARATANI,

for a term to expire 06-30-2019; and

G.M. No. 763

NELSON LAU,

for a term to expire 06-30-2019,

begs leave to report as follows:

Your Committee has reviewed the personal histories, resumes, and statements submitted by the nominees and finds Terrence Aratani and Nelson Lau to possess the requisite qualifications to be nominated to the State Board of Public Accountancy.

TERRENCE ARATANI

Your Committee received testimony in support of the nomination for the appointment of Terrence Aratani from the Department of Commerce and Consumer Affairs; Chamber of Commerce Hawaii; Honolulu Community Action Program, Inc.; Hawai‘i Primary Care Association; and four individuals.

Upon review of the testimony, your Committee finds that Mr. Aratani's background, experience, and commitment to public service qualify him to be nominated for appointment to the State Board of Public Accountancy as a public member. Your Committee notes that Mr. Aratani is an attorney and the current Chief Executive Officer for Koolauloa Health Center and previously spent a number of years working in state government, first for the Insurance Division of the Department of Commerce and Consumer Affairs and later for the Hawaii State Senate, where he served in a variety of roles, including Staff Attorney, Committee Clerk, Legislative Aide, and finally, Chief of Staff for the Office of the Senate President. Mr. Aratani is dedicated to public service and has extensive experience serving on various boards, including the Honolulu Community Action Program, where he has held a number of leadership positions, including past board Chairperson and current Chairperson of the Audit Committee. Mr. Aratani also formerly served as Vice President for Waikiki Health and is the current board Secretary for the Hawaii State Federal Credit Union. Your Committee further finds that Mr. Aratani has a thorough understanding of the role and responsibilities of board members and therefore recommends that Mr. Aratani be appointed to the State Board of Public Accountancy based on his knowledge, experience, and dedication to community service.

NELSON LAU

Your Committee received testimony in support of the nomination for the reappointment of Nelson Lau from the Department of Commerce and Consumer Affairs and three individuals.

Upon review of the testimony, your Committee finds that Mr. Lau's knowledge, background, and proven leadership on the State Board of Public Accountancy qualify him to be nominated for reappointment to the State Board of Public Accountancy as a licensed and actively practicing Certified Public Accountant member. Your Committee notes that Mr. Lau has been a licensed Certified Public Accountant in Hawaii since 1989 and is the managing partner of the Honolulu office of KPMG LLP, where he has provided professional services to clients in the financial services, public utilities, airlines, state and local governments, educational institutions, and not-for-profit sectors. Your Committee finds that Mr. Lau has been a member of the State Board of Public Accountancy since July 2010, has been the Board's Chairperson for the last three years, and will be overseeing the implementation of the peer review requirements for Certified Public Accountant firms in Hawaii, which will be required for firm permits to practice renewals, beginning in 2017. Your Committee further finds that Mr. Lau's expertise and contributions to his profession continue to enhance the effectiveness of the Board and therefore recommends that Mr. Lau be reappointed to the State Board of Public Accountancy based on his background, experience, and commitment to public service.

As affirmed by the records of votes of the members of your Committee on Commerce, Consumer Protection, and Health that are attached to this report, your Committee, after full consideration of the background, experience, and qualifications of the nominees, has found the nominees to be qualified for the positions to which nominated and recommends that the Senate advise and consent to the nominations.

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

____________________________

ROSALYN H. BAKER, Chair