Alaska 32nd Legislature (2021-2022) Status: Enacted Bipartisan · 1 R · 1 I cosponsors

HB 44 — An Act relating to the practice of accounting.

Last action — (H) EFFECTIVE DATE(S) OF LAW 9/7/22

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed House
  4. ✓
    Passed Senate
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced February 18, 2021. Enacted.

Prognosis

Likely to advance 76% · high confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 3 sponsors

    1 primary, 2 co-sponsors signed on.

  • Bipartisan support

    Sponsored across 2 parties (1 R · 1 I) — cross-party backing.

  • Mixed recorded votes

    6 passed, 1 failed in recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Bill Text

What changed in the latest version

520 added · 559 removed

Plain-language change summary

The amended version of Bill HB 44 clarifies the eligibility criteria for appointment as a public member in the field of accounting. Specifically, it now specifies that individuals who have a license and are not violating the practice of public accounting can be appointed, while also removing redundancy from the eligibility requirements. This change is important because it helps simplify the appointment process and ensures that qualified individuals can participate in public accounting oversight without unnecessary restrictions.

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32-LS0302\A HOUSE BILL NO.
LAWS OF ALASKA Source Chapter No.
44 IN THE LEGISLATURE OF THE STATE OF ALASKA THIRTY-SECOND LEGISLATURE - FIRST SESSION BY REPRESENTATIVES THOMPSON, Kaufman, Schrage Introduced:
SCS CSHB 44(L&C) am S _______ AN ACT Relating to the practice of accounting.
2/18/21 Referred:
_______________ BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
State Affairs, Labor and Commerce A BILL FOR AN ACT ENTITLED "An Act relating to the practice of accounting." BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
THE ACT FOLLOWS ON PAGE 1 Enrolled HB 44 AN ACT Relating to the practice of accounting.
* Section 1.
_______________ * Section 1.
Notwithstanding AS 08.01.025, an accountant who does not hold a license under this chapter and is not engaged in the practice of public accounting in violation of this chapter is eligible for appointment as a public member under this section.
Notwithstanding AS 08.01.025, an accountant who does not hold a license under this chapter, [AND] is not engaged in the practice of public accounting in violation of this chapter, and does not have a direct financial interest in public accounting is eligible for appointment as a public member under this section.
The holder of a certificate issued under this section is not authorized to engage in the practice of public accounting in the state unless the HB0044a -1- HB 44 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0302\A holder also has a current license or permit [, OR AN OUT-OF-STATE EXEMPTION OR PRACTICE PRIVILEGE].
The holder of a certificate issued under this section is not authorized to engage in the practice of public accounting in the state unless the -1- Enrolled HB 44 holder also has a current license or permit [, OR AN OUT-OF-STATE EXEMPTION OR PRACTICE PRIVILEGE].
and HB 44 -2- HB0044a New Text Underlined [DELETED TEXT BRACKETED] 32-LS0302\A (4) each owner [PARTNER] who is personally engaged in this state in the practice of public accounting as a member of the firm [THAT PARTNERSHIP] and whose principal place of business is in this state is a certified public accountant of this state in good standing.
and Enrolled HB 44 -2- (4) each owner [PARTNER] who is personally engaged in this state in the practice of public accounting as a member of the firm [THAT PARTNERSHIP] and whose principal place of business is in this state is a certified public accountant of this state in good standing.
(2) all of the owners of the firm [PARTNERSHIP, CORPORATION, HB0044a -3- HB 44 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0302\A LIMITED LIABILITY COMPANY, OR OTHER LEGAL ENTITY] who are not certified public accountants are active individual participants inthe firm [PARTNERSHIP, CORPORATION, LIMITED LIABILITY COMPANY, OR OTHER LEGAL ENTITY,] or in an entity affiliated with the firm [PARTNERSHIP, CORPORATION, LIMITED LIABILITY COMPANY, OR OTHER LEGAL ENTITY];
(2) all of the owners of the firm [PARTNERSHIP, CORPORATION, -3- Enrolled HB 44 LIMITED LIABILITY COMPANY, OR OTHER LEGAL ENTITY] who are not certified public accountants are active individual participants inthe firm [PARTNERSHIP, CORPORATION, LIMITED LIABILITY COMPANY, OR OTHER LEGAL ENTITY,] or in an entity affiliated with the firm [PARTNERSHIP, CORPORATION, LIMITED LIABILITY COMPANY, OR OTHER LEGAL ENTITY];
(k) The board shall grant a permit to engage in the practice of public accounting to a firm that does not have an office in the state but provides, or offers to provide, attest functions in the state, if the firm applies to the board as a firm of certified public accountants and meets the following requirements:
(k) The board shall grant a permit to engage in the practice of public accounting to a firm that does not have an office in the state but provides, or offers to provide, attest functions in the state, if the firm meets the following requirements:
and (4) the firm holds a permit to engage in the practice of public accounting in good standing in the jurisdiction in which the principal office of the firm HB 44 -4- HB0044a New Text Underlined [DELETED TEXT BRACKETED] 32-LS0302\A is maintained.
and (4) the firm holds a permit to engage in the practice of public accounting in good standing in the jurisdiction in which the principal office of the firm is maintained.
* Sec.
Enrolled HB 44 -4- * Sec.
or HB0044a -5- HB 44 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0302\A (2) does not require as a condition of licensure that an individual satisfy the requirements of (1) of this subsection, but the individual's qualifications are substantially equivalent to the requirements of (1) of this subsection;
or (2) does not require as a condition of licensure that an individual -5- Enrolled HB 44 satisfy the requirements of (1) of this subsection, but the individual's qualifications are substantially equivalent to the requirements of (1) of this subsection;
and (4) consent to the appointment of the state board that issued the HB 44 -6- HB0044a New Text Underlined [DELETED TEXT BRACKETED] 32-LS0302\A individual's license as the individual's or firm's [LEGAL ENTITY'S] agent for service of process in a court action or in another proceeding against the individual or firm [LEGAL ENTITY] that arises out of a transaction or an operation connected with or incidental to the individual's or firm's [LEGAL ENTITY'S] engagement in the practice of public accounting.
and (4) consent to the appointment of the state board that issued the individual's license as the individual's or firm's [LEGAL ENTITY'S] agent for service Enrolled HB 44 -6- of process in a court action or in another proceeding against the individual or firm [LEGAL ENTITY] that arises out of a transaction or an operation connected with or incidental to the individual's or firm's [LEGAL ENTITY'S] engagement in the practice of public accounting.
(f) The board shall, not more frequently than once every three years, require as HB0044a -7- HB 44 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0302\A a condition for renewal of a permit of a firm that the applicant firm undergo a peer review conducted as required by the board by regulation.
(f) The board shall, not more frequently than once every three years, require as a condition for renewal of a permit of a firm that the applicant firm undergo a peer -7- Enrolled HB 44 review conducted as required by the board by regulation.
The peer review must include verification that an individual who practices at the firm, including an individual who is responsible for supervising attest functions or compilation services in the firm, and who signs or authorizes another person to sign the accountant's report on a financial statement on behalf of the firm, meets competency requirements established by the board.
The peer review must include verification that an individual who practices at the firm, including an individual who is responsible for supervising attest function services in the firm, and who signs or authorizes another person to sign the accountant's report on a financial statement on behalf of the firm, meets competency requirements established by the board.
In case of excusable failure, the board shall determine the fee for a license or permit or renewal of a license or permit under this section [MAY NOT EXCEED THREE TIMES ONE YEAR'S PORTION OF THE FEE THAT WOULD HAVE OTHERWISE BEEN REQUIRED FOR THE LICENSE, PERMIT, OR HB 44 -8- HB0044a New Text Underlined [DELETED TEXT BRACKETED] 32-LS0302\A RENEWAL].
In case of excusable failure, the department shall determine the fee for a license or permit or renewal of a license or permit under this section [MAY NOT EXCEED THREE TIMES ONE YEAR'S PORTION OF THE FEE THAT WOULD HAVE OTHERWISE BEEN REQUIRED FOR THE LICENSE, PERMIT, OR RENEWAL].
* Sec.
Enrolled HB 44 -8- * Sec.
(10) failure to comply with the peer [SATISFACTORILY HB0044a -9- HB 44 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0302\A COMPLETE A QUALITY] review requirement under AS 08.04.426;
(10) failure to comply with the peer [SATISFACTORILY COMPLETE A QUALITY] review requirement under AS 08.04.426;
[OR] (11) commission of [COMMITTING] an act in another state for which the holder of the license, practice privilege, or permit [, OR OUT-OF-STATE EXEMPTION] would be subject to discipline in this or the other state;
[OR] -9- Enrolled HB 44 (11) commission of [COMMITTING] an act in another state for which the holder of the license, practice privilege, or permit [, OR OUT-OF-STATE EXEMPTION] would be subject to discipline in this or the other state;
The board may revoke or suspend the permit of a firm [PARTNERSHIP, LIMITED LIABILITY COMPANY, CORPORATION, OR OTHER LEGAL ENTITY], may revoke, suspend, or refuse to renew its permit, or may censure the firm [PARTNERSHIP, HB 44 -10- HB0044a New Text Underlined [DELETED TEXT BRACKETED] 32-LS0302\A LIMITED LIABILITY COMPANY, CORPORATION, OR OTHER LEGAL ENTITY] for any of the causes enumerated in AS 08.04.450 or for any of the following additional causes:
The board may revoke or suspend the permit of a firm [PARTNERSHIP, LIMITED LIABILITY COMPANY, CORPORATION, OR OTHER LEGAL ENTITY], may revoke, suspend, or refuse to renew its permit, or may censure the firm [PARTNERSHIP, LIMITED LIABILITY COMPANY, CORPORATION, OR OTHER LEGAL Enrolled HB 44 -10- ENTITY] for any of the causes enumerated in AS 08.04.450 or for any of the following additional causes:
This restriction does not apply to (1) an officer, partner, member, or employee of a firm [SOLE HB0044a -11- HB 44 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0302\A PROPRIETORSHIP, PARTNERSHIP, CORPORATION, LIMITED LIABILITY COMPANY, OR OTHER LEGAL ENTITY] affixing that person's signature to a statement or report in reference to the financial affairs of the firm [SOLE PROPRIETORSHIP, PARTNERSHIP, CORPORATION, LIMITED LIABILITY COMPANY, OR OTHER LEGAL ENTITY] with wording designating the position, title, or office that the person holds in the firm [SOLE PROPRIETORSHIP, PARTNERSHIP, CORPORATION, LIMITED LIABILITY COMPANY, OR OTHER LEGAL ENTITY];
This restriction does not apply to (1) an officer, partner, member, or employee of a firm [SOLE PROPRIETORSHIP, PARTNERSHIP, CORPORATION, LIMITED LIABILITY -11- Enrolled HB 44 COMPANY, OR OTHER LEGAL ENTITY] affixing that person's signature to a statement or report in reference to the financial affairs of the firm [SOLE PROPRIETORSHIP, PARTNERSHIP, CORPORATION, LIMITED LIABILITY COMPANY, OR OTHER LEGAL ENTITY] with wording designating the position, title, or office that the person holds in the firm [SOLE PROPRIETORSHIP, PARTNERSHIP, CORPORATION, LIMITED LIABILITY COMPANY, OR OTHER LEGAL ENTITY];
An individual may not assume or use the title or designation "public accountant" or the abbreviation "PA" or other title, designation, word, letter, abbreviation, sign, card, or device tending to indicate that the individual is a public accountant, unless the individual holds a current license or practice privilege and the individual's offices in this state for the practice of HB 44 -12- HB0044a New Text Underlined [DELETED TEXT BRACKETED] 32-LS0302\A public accounting are maintained as required by AS 08.04.360 and 08.04.370 [AS 08.04.360 - 08.04.380].
An individual may not assume or use the title or designation "public accountant" or the abbreviation "PA" or other title, designation, word, letter, abbreviation, sign, card, or device tending to indicate that the individual is a public accountant, unless the individual holds a current license or practice privilege and the individual's offices in this state for the practice of public accounting are maintained as required by AS 08.04.360 and 08.04.370 Enrolled HB 44 -12- [AS 08.04.360 - 08.04.380].
HB0044a -13- HB 44 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0302\A * Sec.
* Sec.
Sec.
-13- Enrolled HB 44 Sec.
HB 44 -14- HB0044a New Text Underlined [DELETED TEXT BRACKETED] 32-LS0302\A (2) an act of a public official or public employee in the performance of that individual's duties;
(2) an act of a public official or public employee in the performance of Enrolled HB 44 -14- that individual's duties;
(2) an individual who holds a valid license or equivalent authorization in another state from indicating that the individual is entitled to use the title "certified public accountant," but the individual may not indicate that services are available to the public unless the individual holds a current license or practice privilege issued HB0044a -15- HB 44 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0302\A under this chapter;
(2) an individual who holds a valid license or equivalent authorization in another state from indicating that the individual is entitled to use the title "certified public accountant," but the individual may not indicate that services are available to the public unless the individual holds a current license or practice privilege issued under this chapter;
(3) a holder of a certificate, license, or degree from a foreign country that entitles the holder to practice public accounting or the equivalent in the foreign country from providing professional services to the government of the country issuing the license, a business whose principal office is located in the foreign country, or a person who is a resident of the foreign country, if the holder of the certificate, license, or degree issued by the foreign country does not perform attest functions, or issue a report regarding an individual firm, or government of the state, and uses only the title or designation permitted under the certificate, license, or degree issued by the foreign country followed by an English translation [CONSTITUTES A RECOGNIZED QUALIFICATION FOR THE PRACTICE OF PUBLIC ACCOUNTING IN THAT COUNTRY FROM INDICATING THAT THE PERSON HOLDS THE CERTIFICATE, LICENSE, OR DEGREE, BUT THE PERSON MAY NOT INDICATE THAT THE PERSON'S SERVICES ARE AVAILABLE TO THE PUBLIC UNLESS THE PERSON HOLDS A CURRENT LICENSE, PRACTICE PRIVILEGE, PERMIT, OR OUT-OF-STATE EXEMPTION UNDER THIS CHAPTER].
-15- Enrolled HB 44 (3) a holder of a certificate, license, or degree from a foreign country that entitles the holder to practice public accounting or the equivalent in the foreign country from providing professional services to the government of the country issuing the license, a business whose principal office is located in the foreign country, or a person who is a resident of the foreign country, if the holder of the certificate, license, or degree issued by the foreign country does not perform attest functions, or issue a report regarding an individual, firm, or government of the state, and uses only the title or designation permitted under the certificate, license, or degree issued by the foreign country followed by an English translation [CONSTITUTES A RECOGNIZED QUALIFICATION FOR THE PRACTICE OF PUBLIC ACCOUNTING IN THAT COUNTRY FROM INDICATING THAT THE PERSON HOLDS THE CERTIFICATE, LICENSE, OR DEGREE, BUT THE PERSON MAY NOT INDICATE THAT THE PERSON'S SERVICES ARE AVAILABLE TO THE PUBLIC UNLESS THE PERSON HOLDS A CURRENT LICENSE, PRACTICE PRIVILEGE, PERMIT, OR OUT-OF-STATE EXEMPTION UNDER THIS CHAPTER].
(2) the release of information the client has authorizedlensec holder, permit holder, [OUT-OF-STATE EXEMPTION HOLDER,] or practice HB 44 -16- HB0044a New Text Underlined [DELETED TEXT BRACKETED] 32-LS0302\A privilege holder to reveal;
(2) the release of information the client has authorizedlensec holder, permit holder, [OUT-OF-STATE EXEMPTION HOLDER,] or practice privilege holder to reveal;
(3) information revealed as part of the discovery of evidence related to a court or administrative proceeding or introduced in evidence in a court or administrative proceeding;
Enrolled HB 44 -16- (3) information revealed as part of the discovery of evidence related to a court or administrative proceeding or introduced in evidence in a court or administrative proceeding;
or (E) any examination, other than an examination described in (C) of this paragraph, review, or agreed upon procedure [TO BE] performed in accordance with the standards on attestation engagements as (i) developed by national accountancy organizations, including the American Institute of Certified Public Accountants and HB0044a -17- HB 44 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0302\A the Public Company Accounting Oversight Board;
or (E) any examination, other than an examination described in (C) of this paragraph, review, or agreed upon procedure [TO BE] performed in accordance with the standards on attestation engagements as (i) developed by national accountancy organizations, including the American Institute of Certified Public Accountants and the Public Company Accounting Oversight Board;
and (ii) adopted by the board in regulation;
and -17- Enrolled HB 44 (ii) adopted by the board in regulation;
(19) "report," when used with reference to an attest function or compilation service, (A) means (i) an opinion, report, or other form of language that states or implies assurance as to the reliability of the attested information or compiled financial statements and that also contains or is accompanied by a statement or implication that the person issuing it has special knowledge or competency in accounting or auditing, which HB 44 -18- HB0044a New Text Underlined [DELETED TEXT BRACKETED] 32-LS0302\A may arise from use by the issuer of the report of names or titles indicating that the issuer is a certified public accountant or auditor, or from the language of the report itself;
(19) "report," when used with reference to an attest function or compilation service, (A) means (i) an opinion, report, or other form of language that states or implies assurance as to the reliability of the attested information or compiled financial statements and that also contains or is accompanied by a statement or implication that the person issuing it has special knowledge or competency in accounting or auditing, which may arise from use by the issuer of the report of names or titles Enrolled HB 44 -18- indicating that the issuer is a certified public accountant or auditor, or from the language of the report itself;
HB0044a -19- HB 44 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0302\A (21) "firm" means a sole proprietorship, partnership, limited liability company, corporation, or other legal entity;
(21) "firm" means a sole proprietorship, partnership, limited liability -19- Enrolled HB 44 company, corporation, or other legal entity;
(22) "peer review" means a study, appraisal, or review of oneor more aspects of the professional work of a person in the practice of public accounting who issues attest or compilation reports conducted as prescribed under AS 08.04.426 by a person who holds a certificate and who is not affiliated with the person being reviewed;
(22) "peer review" means a study, appraisal, or review of oneor more aspects of the professional work of a person in the practice of public accounting who issues attests conducted as prescribed under AS 08.04.426 by a person who holds a certificate and who is not affiliated with the person being reviewed;
HB 44 -20- HB0044a New Text Underlined [DELETED TEXT BRACKETED]
Enrolled HB 44 -20-
View plain text versions (5)

Action History

  1. (H) EFFECTIVE DATE(S) OF LAW 9/7/22

  2. (H) Signed into law 6/9 CHAPTER 5 SLA 22

  3. (H) 12:55 P.M. 6/2/22 Transmitted to Governor

  4. (H) LEGAL MEMO SPREAD ON JOURNAL FAILED Y3 N32 E4 A1

  5. (H) RESCIND ACTION TO SPREAD 2/9 LEGAL MEMO Y34 N1 E4 A1

  6. (H) CONCUR AM OF (S) Y39 E1

  7. (H) LEGAL MEMO SPREAD ON JOURNAL UC

  8. (H) CONCUR TAKEN UP UC

  9. (H) CONCUR READ AND HELD

  10. (S) VERSION: SCS CSHB 44(L&C) AM S

  11. (S) TRANSMITTED TO (H) AS AMENDED

  12. (S) PASSED Y18 N- E1 A1

  13. (S) AUTOMATICALLY IN THIRD READING

  14. (S) AM NO 1 ADOPTED Y14 N4 E1 A1

  15. (S) RETURN TO SECOND FOR AM 1 UC

  16. (S) READ THE THIRD TIME SCS CSHB 44(L&C)

  17. (S) ADVANCED TO THIRD READING 2/1 CALENDAR

  18. (S) L&C SCS ADOPTED UC

  19. (S) READ THE SECOND TIME

  20. (S) RULES TO CALENDAR 1/28/2022

  21. (S) FN3: ZERO(CED)

  22. (S) NR: REVAK

  23. (S) DP: COSTELLO, GRAY-JACKSON, STEVENS

  24. (S) L&C RPT SCS(L&C) 3DP 1NR SAME TITLE

  25. (S) Minutes (SL&C)

  26. (S) Moved SCS CSHB 44(L&C) Out of Committee

  27. (S) LABOR & COMMERCE at 01:30 PM BELTZ 105 (TSBldg)

  28. (S) L&C

  29. (S) READ THE FIRST TIME - REFERRALS

  30. (H) VERSION: CSHB 44(STA)

  31. (H) TRANSMITTED TO (S)

  32. (H) COSPONSOR(S): KAUFMAN, SCHRAGE

  33. (H) PASSED Y38 N2

  34. (H) READ THE THIRD TIME CSHB 44(STA)

  35. (H) ADVANCED TO THIRD READING UC

  36. (H) STA CS ADOPTED UC

  37. (H) READ THE SECOND TIME

  38. (H) RULES TO CALENDAR 5/19/2021

  39. (H) LIMIT ALL DEBATE TO 2 MIN EACH Y23 N16 E1

  40. (H) FN2: ZERO(CED)

  41. (H) NR: SPOHNHOLZ

  42. (H) DP: KAUFMAN, SCHRAGE, MCCARTY, SNYDER, NELSON, FIELDS

  43. (H) L&C RPT CS(STA) 6DP 1NR

  44. (H) Minutes (HL&C)

  45. (H) Moved HB 44 Out of Committee

  46. (H) LABOR & COMMERCE at 03:15 PM BARNES 124

  47. (H) Minutes (HL&C)

  48. (H) Heard & Held -- Please Note Time & Location Change --

  49. (H) LABOR & COMMERCE at 08:00 AM GRUENBERG 120

  50. (H) Minutes (HL&C)

  51. (H) Heard & Held

  52. (H) LABOR & COMMERCE at 03:15 PM BARNES 124

  53. (H) FN1: (CED)

  54. (H) AM: EASTMAN

  55. (H) DP: CLAMAN, STORY, KAUFMAN, VANCE, TARR, KREISS-TOMKINS

  56. (H) STA RPT CS(STA) 6DP 1AM

  57. (H) Minutes (HSTA)

  58. (H) Moved CSHB 44(STA) Out of Committee

  59. (H) STATE AFFAIRS at 03:00 PM GRUENBERG 120

  60. (H) Minutes (HSTA)

  61. (H) Heard & Held

  62. (H) STATE AFFAIRS at 03:00 PM GRUENBERG 120

  63. (H) Minutes (HSTA)

  64. (H) Heard & Held

  65. (H) STATE AFFAIRS at 03:00 PM GRUENBERG 120

  66. (H) STA, L&C

  67. (H) READ THE FIRST TIME - REFERRALS

  68. (H) Prefile released 1/8/21

Sponsors

Sponsorship breakdown

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1 sponsors · 2 co-sponsors · 62 not signed on

Sponsors (1)

  • THOMPSON

Co-sponsors (2)

Not signed on (62)

62 members have not signed on to this bill.

Show all 62 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

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Frequently asked questions

Who sponsors HB 44?
HB 44 is sponsored by THOMPSON, James Kaufman (R), and Calvin Schrage (N).
What is the current status of HB 44?
This bill has been enacted into law. Introduced February 18, 2021. Enacted.
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