Report Title:

Public Accountants

Description:

Establishes reciprocity for public accountants.

THE SENATE

S.B. NO.

1066

TWENTY-THIRD LEGISLATURE, 2005

 

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. Chapter 466, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§466- Practice privileges. (a) An individual whose principal place of business is not in this State and who has a valid and current license, certificate, or permit authorizing the individual to practice public accountancy in another state may engage, subject to the conditions and limitations in this section, in the practice of public accountancy in this State under a practice privilege, without obtaining a license or permit under this chapter, if the individual satisfies one of the following:

(1) The individual has continually practiced public accountancy as a certified public accountant under a valid license issued by any state for at least four of the last ten years; or

(2) The individual has a license, certificate, or permit authorizing the individual to practice public accountancy from any state with licensing requirements that have at least the following elements:

(A) One hundred fifty semester hours of college education including a baccalaureate or higher degree conferred by a college or university, the total education program to include an accounting concentration or equivalent;

(B) Passage of a uniform examination that tests the applicant's knowledge of accounting and auditing; and

(C) One year of experience; or

(3) The individual possesses qualifications that equal or exceed the following:

(A) One hundred fifty semester hours of college education including a baccalaureate or higher degree conferred by a college or university, the total education program to include an accounting concentration or equivalent;

(B) Passage of a uniform examination that tests the applicant's knowledge of accounting and auditing; and

(C) One year of experience.

(b) The board may designate states as possessing the minimum licensing elements described in subsection (a)(2) and may adopt the designations of substantially equivalent states made by any recognized, nationwide professional organization. The board may accept individual qualification evaluations or appraisals conducted by designated entities, as satisfying the requirements of subsection (a)(3).

(c) To obtain a practice privilege under this section, an individual who meets the requirements of subsection (a) shall do the following:

(1) In the manner prescribed by rule, notify the board of the individual's intent to practice; and

(2) Pay a fee as prescribed by rule.

(d) Except as otherwise provided by this section or by rule, the practice privilege commences when the individual notifies the board, provided the fee is received by the board within sixty days of that date. The board shall permit the notification to be provided electronically.

(e) An individual who holds a practice privilege under this section:

(1) Is subject to the personal and subject matter jurisdiction and disciplinary authority of the board and the courts of this State;

(2) Shall comply with this chapter, rules, and other laws and professional standards applicable to the practice of public accountancy by the licensees of this State and to any other laws and rules applicable to individuals practicing under practice privileges in this State, except the individual is deemed, solely for the purpose of this section, to have met the continuing education requirements of this State when the individual has met the examination and continuing education requirements of the state in which the individual holds the valid license, certificate, or permit on which the substantial equivalency is based;

(3) Is deemed to have appointed the regulatory agency of the state that issued the individual's certificate, license, or permit upon which substantial equivalency is based as the individual's agent on whom notices, subpoenas or other process may be served in any action or proceeding by the board against the individual; and

(4) Shall cooperate with any board investigation or inquiry and shall timely respond to a board investigation, inquiry, request, notice, demand, or subpoena for information or documents and timely provide to the board the identified information and documents. Compliance with this provision shall not require an individual to waive any relevant defenses or privileges.

(f) A practice privilege expires one year from the date of the notice, unless a shorter period is set by rule.

(g) Practice privileges may be denied for failure to qualify under or comply with this section or its rules or for any act that, if committed by a licensee, would be grounds for discipline under section 466-10.

(h) The board may deny practice privileges by notifying the individual in writing of all of the following:

(1) That the practice privilege is denied;

(2) The reasons for denial;

(3) That the individual has a right to file a petition for relief under the rules of practice and procedure of the department if a petition for relief is filed within sixty days; and

(4) That, if the individual does not submit a petition for relief within sixty days, the board's action set forth in the notice shall become final.

(i) An individual who had been denied a practice privilege may apply for a new practice privilege not less than one year after the effective date of the notice or decision denying the practice privilege, unless a longer time period, not to exceed three years, is specified in the notice or decision denying the practice privilege.

(j) Practice privileges are subject to revocation, suspension, fines, or other disciplinary sanctions for any conduct that would be grounds for discipline against a licensee of the board or for any conduct in violation of this section or rules implementing this section.

(k) Practice privileges are subject to discipline during any time period in which they are valid.

(l) Chapters 91 and 92 and the rules of practice and procedure of the department, including, but not limited to, the initiation of a disciplinary proceeding by the board shall apply under this section.

(m) Unless the context requires otherwise, the term "license", "licensee", "permit", or "certificate" as used in this chapter, or chapter 436B, shall include persons holding practice privileges under this section.

(n) Any notice of practice privileges under this section and supporting documents is deemed an application for licensure for purposes of the provisions of the Hawaii Revised Statutes, including, but not limited to, this chapter and chapter 436B related to the denial, suspension, and revocation of licenses.

(o) In addition to the authority otherwise provided by law, all investigative powers of the board shall apply to investigations concerning compliance with, or actual or potential violations of, the provisions of this section or implementing rules, including, but not limited to, the power to issue subpoenas under section 92-16.

(p) The board may adopt rules, pursuant to chapter 91, as necessary for the purposes of this section."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval.

INTRODUCED BY:

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