Report Title:

Public Accountancy; Out-of-State Practice

 

Description:

Authorizes the out-of-state practice of public accountancy in this State provided that the practice is conducted through an individual with a permit or privilege to practice in this State.  Establishes a privilege to practice in this State for out-of-state practitioners.

 


HOUSE OF REPRESENTATIVES

H.B. NO.

995

TWENTY-FIFTH LEGISLATURE, 2009

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

RELATING TO PUBLIC ACCOUNTANCY.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  The purposes of this Act are to:

     (1)  Clarify the rules governing practice in this State by firms and individuals licensed to practice public accounting in other states; and

     (2)  Insure that all certified public accountants practicing in Hawaii are subject to the disciplinary power of the state board of public accountancy.

     SECTION 2.  Chapter 466, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:

     "§466-A  Practice by certain out-of-state firms.  (a)  A certified public accounting firm that holds a current valid license to practice public accounting in another state, has its primary place of business in that state, and does not maintain an office in Hawaii, may practice in this State without a firm license or notice to the board provided that the firm's practice in this State is performed by and through an individual who either holds a permit to practice under this chapter or practices under a privilege under section 466-B.

     (b)  As a condition of practicing in this State pursuant to this section, the firm shall:

     (1)  Be subject to the personal and subject matter jurisdiction and disciplinary authority of the state board of public accountancy;

     (2)  Comply with this chapter and with all applicable rules established by the state board of public accountancy; and

     (3)  Be deemed to have appointed the regulatory agency of the state that issued the firm's license as the firm's agent, upon whom process may be served in any action or proceeding by the state board of public accountancy against the firm.

     §466-B  Limited practice by out-of-state practitioner.  (a)  An individual who holds a current valid license to practice as a certified public accountant issued by another state whose principal residence and principal place of business are in that state and who does not maintain an office in this State may practice public accountancy in this State subject to the restrictions and conditions in this section; provided that:

     (1)  The National Association of State Boards of Accountancy's National Qualification Appraisal Service has verified that the other state has education, examination, and experience requirements for certification or licensure that are comparable to or exceed the requirements for licensure as a certified public accountant of The American Institute of Certified Public Accountants/National Association of State Boards of Accountancy Uniform Accountancy Act and the board determines that the licensure requirements of this chapter are met; or

     (2)  The individual obtains from the National Association of State Boards of Accountancy's National Qualification Appraisal Service verification that the individual's education, examination, and experience qualifications are comparable to or exceed the requirements of this chapter for obtaining a permit to practice.

     (b)  An individual who meets the requirements of subsection (a)(1) or (2) and who offers or renders professional services in person or by mail, telephone, or electronic means may practice public accountancy in this State without notice to the state board of public accountancy.

     (c)  An individual practicing under this section, as a condition of the privilege of practicing in this State shall:

     (1)  Be subject to the personal and subject matter jurisdiction and disciplinary authority of the state board of public accountancy;

     (2)  Comply with this chapter and with all applicable rules established by the state board of public accountancy; and

     (3)  Be deemed to have appointed the regulatory agency of the state that issued the person's license as the person's agent, upon whom process may be served in any action or proceeding by the state board of public accountancy against the person.

     (d)  An individual practicing under this section shall practice through a firm that holds a license under this chapter if, for an entity with its principal office in this State, the individual performs:

     (1)  A financial statement audit or other engagement in accordance with the Statements on Auditing Standards;

     (2)  An examination of prospective financial information in accordance with the Statements on Standards of Attestation Engagements; or

     (3)  An engagement in accordance with auditing standards of the Public Company Accounting Oversight Board or its successor."

     SECTION 3.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

     SECTION 4.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

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