§ 5-3.1-7 - Permits for public accountants and certified public accountants.
SECTION 5-3.1-7
§ 5-3.1-7 Permits for public accountantsand certified public accountants. – (a) Annual permits to engage in the practice of public accounting in this stateshall be issued by the board, upon application for the permit and payment ofthe required fee, to certified public accountants qualified under §5-3.1-5 or eligible under the substantial equivalency standard set out insubsection (g) of this section, and to public accountants qualified under§ 5-3.1-6. Effective January 1, 2009, all permits issued by the boardshall be valid for a period of three (3) years and shall expire upon the lastday of June of the year in which the permit is scheduled to expire. Totransition existing licensees to a three (3) year licensing cycle, the boardshall have the authority and discretion in 2008 to issue permits under thissection that are valid for one, two (2), or three (3) years. All such permitsissued during 2008 shall expire upon the last day of June of the year in whichthe permit is scheduled to expire. The board's authority to issue permits validfor one or two (2) years shall cease as of December 31, 2008.
(b) A certified public accountant who holds a permit issuedby another state and who desires to practice in this state shall apply for apermit in this state if that person does not qualify for reciprocity under thesubstantial equivalency standard set out in subsection (g) of this section.Upon the date of filing the completed application with the board, the applicantis deemed qualified to practice and may practice public accounting in thisstate pending board review of the application; provided, that the applicantmeets all other applicable requirements under this chapter. Submission of theapplication constitutes the appointment of the secretary of state as an agentfor the applicant for service of process in any action or proceeding arisingout of any transaction or operation connected with or incidental to thepractice of public accounting in this state by the applicant.
(c) Applications for renewal of a permit under this sectionshall be submitted to the board by February 15 of the year in which the permitis scheduled to expire and shall be accompanied by evidence that the applicanthas satisfied the continuing professional education requirements promulgated byboard regulation. That evidence shall be in a form that the board requires.Failure to furnish that evidence constitutes grounds for refusal to renew thepermit unless the board in its discretion determines that the failure was dueto reasonable cause or excusable neglect.
(d) Applications for renewal of a permit under this sectionshall also identify any practice unit with which the applicant is affiliated.In the event the practice unit fails to comply with § 5-3.1-9 or 5-3.1-10,the board may refuse to renew the applicant's individual permit if the boarddetermines that the applicant was personally and substantially responsible forthe failure of the practice unit to meet the requirements of §§5-3.1-9 and 5-3.1-10.
(e) All applicants for a permit under this section shall listin the application all other states in which the applicant has applied for orholds a permit to practice. Each applicant for or holder of a permit issuedunder this section or any individual who has entered the state under theprovisions of substantial equivalency shall, within thirty (30) days of theoccurrence of the event, notify the board in writing:
(1) Of the issuance, denial, revocation, or suspension of anycertificate, license, degree, or permit by any other state; or
(2) Of the commencement of any disciplinary or enforcementaction against the applicant, holder or individual by any other state.
(f) Fees for the issuance and renewal of permits under thissection shall be established from time to time by the board. In no case shallthe three (3) year renewal fee be less than three hundred and seventy-fivedollars ($375). The required fee shall be paid by the applicant at the time theapplication is filed with the board.
(1) An individual whose principal place of business orprincipal residence is not in this state having a valid certificate or licenseas a certified public accountant from any state whose licensure requirementsare determined to be substantially equivalent with the conditions of thissection shall have all the privileges of certificate holders and licensees ofthis state without the need to obtain a certificate or permit from this stateunder this section as long as the conditions of this section are met. Theindividual must have one year or more of experience. This experience shallinclude providing any type of service or advice involving the use ofaccounting, attest, management advisory, financial advisory, tax or consultingskills all of which was verified by a licensee, meeting requirements prescribedby the board by rule. This experience is acceptable if it was gained throughemployment in government, industry, academia or public practice.Notwithstanding any other provision of law, an individual who offers or rendersprofessional services, whether in person, by mail, telephone or electronicmeans, under this section shall be granted practice privileges in this stateand no notice or other submission shall be provided by any such individual.Such an individual shall be subject to the requirements in subdivision (g)(3).If this individual is responsible for supervising attest services and signs orauthorizes another licensee to sign the accountant's report on the financialstatements on behalf of the firm, this individual shall meet the experiencerequirements set out in the professional standards for such services. If thisindividual is responsible for signing or authorizing another licensee to signthe accountant's report on the financial statements on behalf of the firm, thisindividual shall meet the experience requirements set out in the professionalstandards for such services. The board may use the NASBA National QualificationAppraisal Service to determine which other states have substantial equivalencewith this chapter.
(2) An individual whose principal place of business is not inthis state and who holds a valid certificate or license as a certified publicaccountant from any state which the NASBA National Qualification AppraisalService has not verified to be in substantial equivalence with the CPAlicensure requirements if the AICPA/NASBA Uniform Accountancy Act shall bepresumed to have qualifications substantially equivalent to this state'srequirements and shall have all the privileges of certificate holders andlicenses of this state without the need to obtain a certificate or permit underthis section if such individual obtains from the NASBA National QualificationAppraisal Service verification that such individual's CPA qualifications aresubstantially equivalent to the CPA licensure requirements of the AICPA/NASBAUniform Accountancy Act. Any individual who passed the Uniform CPA Examinationand holds a valid license issued by any other state prior to January 1, 2012may be exempt from the education requirement in subdivision 5-3.1-5(a)(3) forpurposes of this section.
(3) Any individual licensee of another state exercising theprivilege afforded under this section and the CPA firm which employs thatlicensee hereby simultaneously consents, as a condition of the granting of thisprivilege:
(i) To the personal and subject matter jurisdiction anddisciplinary authority of the board;
(ii) To comply with this chapter and the board's rules;
(iii) That in the event the certificate or license from thestate of the individual's principal place of business is no longer valid, theindividual will cease offering or rendering professional services in this stateindividually and on behalf of a CPA firm; and
(iv) To the appointment of the board which issued theirlicense as their agent upon whom process may be served in any action orproceeding by this board against the licensee.
(4) A licensee of this state offering or rendering servicesor using their CPA title in another state shall be subject to disciplinaryaction in this state for an act committed in another state for which thelicensee would be subject to discipline for an act committed in the other state.