STAND. COM. REP. NO. 3348

Honolulu, Hawaii

RE:    H.B. No. 1669

       H.D. 2

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred H.B. No. 1669, H.D. 2, S.D. 1, entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is to improve peer reviews for public accountancy.

     Specifically, this measure:

(1)  Redefines "peer review" to include reviews done by out-of-state public accountancy licensees;

(2)  Extends deadlines for filing of peer review compliance reporting forms and for appealing certain ratings from ten days to thirty calendar days;

(3)  Allows members of the public accountancy peer review oversight committee to be reimbursed for expenses and protects members from civil liability for actions done in furtherance of the purposes of the committee;

(4)  Defines the term "Hawaii attest work"; and

(5)  Clarifies that a peer reviewer is required to select one or more engagements from the list of engagements obtained from a reviewed firm.

     Your Committee received written comments in support of this measure from the Board of Public Accountancy.

Your Committee finds that this measure will ensure the continuation of quality work performed by public accountancy peer reviewers and their oversight committee.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1669, H.D. 2, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

________________________________

JILL N. TOKUDA, Chair