STAND. COM. REP. NO. 2948

Honolulu, Hawaii

RE: S.B. No. 2881

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Health, to which was referred S.B. No. 2881 entitled:

"A BILL FOR AN ACT RELATING TO THE PEER REVIEW OVERSIGHT COMMITTEE,"

begs leave to report as follows:

The purpose and intent of this measure is to clarify the role of the Board of Public Accountancy in selecting members to serve on the Board's Peer Review Oversight Committee.

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

Your Committee finds that existing law requires that the firm of a prospective Peer Review Oversight Committee member must receive a rating of pass or an unmodified opinion from its last peer review. According to testimony received by your Committee, the accountancy profession's standards of review change frequently, and it is anticipated that the Peer Review Oversight Committee duties will increase substantially because of recent changes. This measure, therefore, will give the Board of Public Accountancy greater discretion needed to appropriately and timely select members who can serve on the Peer Review Oversight Committee.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2881 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.

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

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ROSALYN H. BAKER, Chair