HB2263 - 512R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 32-701, Arizona Revised Statutes, is amended to read:

START_STATUTE32-701. Definitions

In this chapter, unless the context otherwise requires:

1. "Accounting services" means services that are commonly and historically performed by accountants, including recording or summarizing financial transactions, bookkeeping, analyzing or verifying financial information, auditing, reviewing or compiling financial statements, reporting financial results, financial planning, ~~and~~ providing attestation, or tax or consulting services.

2. "Accredited institution" means any public or private regionally or nationally accredited college or university that is accredited by an organization recognized by the council for higher education accreditation or its successor agency.

3. "Attest services" means the following services that are rendered by the holder of a certificate issued by the board:

(a) Audits or other engagements to be performed in accordance with the statements on auditing standards adopted by the American institute of certified public accountants.

(b) Reviews of financial statements to be performed in accordance with the statements on standards for accounting and review services adopted by the American institute of certified public accountants.

(c) Any examination of prospective financial information to be performed in accordance with the statements on standards for attestation engagements adopted by the American institute of certified public accountants.

(d) Any engagement to be performed in accordance with the standards of the public company accounting oversight board or its successor.

(e) Any examination, review or agreed on procedure engagement to be performed in accordance with the statements on standards for attestation engagements adopted by the American institute of certified public accountants, other than an examination described in subdivision (c) of this paragraph.

4. "Attestation" or "attest function" means the issuance by a registrant of a written communication that expresses a conclusion about the reliability of a written assertion that is the responsibility of another party.

5. "Board" means the Arizona state board of accountancy established by section 32‑702.

6. "Certified public accountant" means an individual who has been issued a certificate of authority by the board to practice as a certified public accountant or who meets the limited reciprocity privilege requirements pursuant to section 32‑725.

7. "Client" means a person or entity, other than one's employer, for whom accounting services are provided.

8. "Consulting services" includes management advisory services, litigation support services, valuation services and other services that require the use of technical skills, education, observation, experience and knowledge to develop an analytical approach to process and to present findings, conclusions or recommendations.

9. "Conviction" means a judgment of conviction by any state or federal court of competent jurisdiction in a criminal cause, regardless of whether an appeal is pending or could be taken, and includes any judgment or order based on a plea of no contest.

10. "Disciplinary action" means any other regulatory sanctions imposed by the board in combination with, or as an alternative to, revocation or suspension of a certificate or registration, including the imposition of:

(a) An administrative penalty in an amount not to exceed two thousand dollars for each violation of this chapter or rules adopted pursuant to this chapter.

(b) Restrictions on the scope of the registrant's accounting practice, including, without limitation, restriction of audit or attest function practice, restriction of tax practice or restriction of consulting services.

(d) Professional education requirements.

(e) A decree of censure.

(f) Probation requirements best adapted to protect the public welfare.

(g) Reimbursement of the board's costs of investigations and proceedings initiated under this chapter.

(h) A requirement for restitution payments to accounting services clients or to other persons suffering economic loss resulting from violations of this chapter or rules adopted pursuant to this chapter.

11. "Employer" means a person or entity that hires an individual to perform a service and that directs and controls the manner in which the service is performed.

12. "Federal securities laws" means the securities act of 1933, the securities exchange act of 1934, the public utility holding company act of 1935 and the investment company act of 1940, as amended.

13. "Financial statements":

(a) Means statements and footnotes related to statements that purport to show a financial position or changes in a financial position in conformity with generally accepted accounting ~~principals~~ principles or other comprehensive basis of accounting.

(b) Includes balance sheets, statements of income, statements of retained earnings, statements of cash flows, statements of changes in an owner's equity and other commonly used or recognized summaries of financial information.

14. "Firm" means a business organization that is engaged in the practice of public accounting and that is established under the laws of any state or foreign country, including a sole practitioner, partnership, professional corporation, professional limited liability company, limited liability company, limited liability partnership or any other entity recognized by the board that has met the applicable requirements contained in sections 32‑731 and 32‑732.

15. "Good cause" means factors that temporarily prevent a registrant from satisfying a particular requirement in a specific instance as determined by the board and may include:

(a) A disability.

(b) An illness.

(d) Military service.

(e) Financial hardship.

(f) A natural disaster.

(g) Any condition or circumstance that the board deems relevant.

16. "Jurisdiction" means, for the purposes of examination, certification or limited reciprocity privilege, the fifty states of the United States, the District of Columbia, the United States Virgin Islands, Guam or the Commonwealth of the northern Mariana Islands.

16. 17. "Letter of concern" means an advisory letter to notify a registrant that, while the evidence does not warrant disciplinary action, the board believes that the registrant should modify or eliminate certain practices and that continuation of the activities that led to the evidence being submitted to the board may result in board action against the registrant. A letter of concern is not a disciplinary action.

17. 18. "Limited reciprocity privilege" means the permission to practice as a certified public accountant in this state pursuant to section 32‑725 for an individual whose principal place of business is outside of this state.

18. 19. "Management advisory services" means advisory services consisting of the development of findings, conclusions or recommendations for the recipient's consideration and decision making.

19. 20. "Practice of accounting" means providing accounting services for a client or an employer.

20. 21. "Practice of public accounting" means providing accounting services for a client but does not include providing accounting services, other than attest services or compilation services, for a nonprofit entity or a family member without an expectation of and without receiving compensation.

21. 22. "Principal place of business" means the office designated by the individual or firm as the principal location for the practice of accounting.

22. 23. "Public accountant" means an individual who has been issued a certificate of authority by the board to practice as a public accountant.

23. 24. "Registrant" means any certified public accountant, public accountant or firm that is registered with the board.

24. 25. "Related courses" means:

(a) Business administration.

(b) Statistics.

(d) Economics.

(e) Finance.

(f) Management.

(g) Business law.

(h) College algebra or more advanced mathematics.

(i) Advanced written communication.

(j) Advanced oral communication.

(k) Ethics.

(l) Marketing.

(m) Other courses closely related to the subject of accounting and satisfactory to the board.

Sec. 2. Section 32-721, Arizona Revised Statutes, is amended to read:

START_STATUTE32-721. Certified public accountants; qualifications

A. The board shall issue a certificate of certified public accountant to any individual who complies with all of the following:

1. Meets the requirements of sections 1‑501 and section 41‑1080.

2. Is at least eighteen years of age.

3. Is of good moral character.

4. Has not engaged in any conduct that would constitute grounds for revocation or suspension of a certificate or other disciplinary action pursuant to section 32‑741.

5. Meets the requirements of subsection B, C or D of this section.

B. If the applicant passes the uniform certified public accountant examination and has never been certified, registered or licensed as a certified public accountant in this state or another jurisdiction, the applicant must comply with both of the following:

1. Have had at least two thousand hours of paid or unpaid experience, either before or after passing all sections of the examination for certified public accountant, that has exposed the applicant to and provided the applicant with experience in the practice of accounting. The applicant's experience must be sufficient to demonstrate the applicant's ability for critical inquiry and analysis of financial accounting information, including balance sheets, income statements, cash flow statements and tax returns and the applicant's ability to communicate, either orally or in writing, on the results of an inquiry or analysis of that information to an employer, client or third party.

2. Present satisfactory evidence that the person has successfully obtained a baccalaureate degree or higher degree from an accredited institution or a college or university that maintains standards comparable to those of an accredited institution and that the applicant has completed at least one hundred fifty semester hours of education of which:

(a) At least thirty‑six semester hours are nonduplicative accounting courses of which at least thirty semester hours are upper division courses.

(b) At least thirty semester hours are related courses.

C. If the applicant passes the uniform certified public accountant examination and has a certificate, registration or license to practice as a certified public accountant in another jurisdiction and the applicant has never had a certificate issued by the board expire or be relinquished or revoked, at least one of the following shall apply:

1. The certificate, registration or license is issued by a jurisdiction whose requirements are determined by the board to be substantially equivalent to the requirements prescribed in subsection B of this section.

2. The applicant has a baccalaureate degree or its equivalent or a higher degree from an accredited institution or a college or university that maintains standards comparable to those of an accredited institution and either of the following applies:

(a) The applicant has been employed as a certified public accountant in the practice of accounting for at least three years and has completed at least one hundred fifty semester hours of education that includes both of the following:

(i) At least twenty‑four semester hours of nonduplicative accounting courses, of which twelve semester hours are upper division courses.

(ii) At least eighteen semester hours in related courses.

(b) The applicant has been employed as a certified public accountant in the practice of accounting for at least five of the ten preceding years and has completed both of the following:

(i) At least twenty‑four semester hours of nonduplicative accounting courses, of which twelve semester hours are upper division courses.

(ii) At least eighteen semester hours in related courses.

3. The applicant has been employed as a certified public accountant in the practice of accounting for at least ten of the fifteen preceding years.

D. If an applicant passes the international uniform certified public accountant qualification examination of the American institute of certified public accountants, all of the following apply:

1. The applicant's country has a mutual recognition agreement with the national association of state boards of accountancy that has been adopted by the board.

2. The board recognizes that the applicant's qualifications are substantially equivalent to the qualifications of certified public accountants in the United States in the areas of education, examination and experience. END_STATUTE

Sec. 3. Section 32-729, Arizona Revised Statutes, is amended to read:

START_STATUTE32-729. Fees

The board shall establish and collect:

1. A uniform fee from an applicant for each initial examination and reexamination application pursuant to section 32‑723 to cover reasonable costs of reviewing the applicant's eligibility to take the examination and facilitating the applicant to take the examination until the applicant passes all sections.

2. A uniform fee from each applicant for a certificate to be issued pursuant to section 32‑721.

3. A uniform registration fee of at least one hundred and not more than three hundred dollars from each applicant for registration as a certified public accountant or public accountant pursuant to section 32‑730. The registration fee is due during the month of the anniversary of the registrant's birth. Registrants for less than two years shall be charged on a pro rata basis for the remainder of the registration period. The board shall establish and collect a late fee, if applicable, of not more than one hundred dollars.

4. A uniform registration fee of at least one hundred dollars and not more than three hundred dollars from each applicant for registration as a firm pursuant to section 32‑730. The registration fee is due during the month of the anniversary of the effective date of the firm's formation. The board shall establish and collect a late fee, if applicable, of not more than one hundred dollars. The board shall not charge a fee for the registration of additional offices of the same firm or for the registration of a sole practitioner.

5. A uniform application fee in an amount to be determined by the board to reinstate a license certificate pursuant to this chapter.

6. A uniform registration fee of fifty dollars for retired status registration as described in section 32‑730.04. The board shall establish and collect a late fee, if applicable, and it is the intent of the legislature that the fee is not more than one hundred dollars.END_STATUTE

Sec. 4. Section 32-730.01, Arizona Revised Statutes, is amended to read:

START_STATUTE32-730.01. Inactive status; reactivation; exception

A. A registrant who is not actively engaged in the practice of accounting in this state for a fee or other compensation may request that the registrant's certificate be placed on inactive status by meeting the requirements for inactive status and completing the forms prescribed by the board. A registrant whose certificate is under a disciplinary order by the board or against whom disciplinary proceedings have been initiated may not place or maintain a certificate on inactive status.

B. A registrant whose certificate is on inactive status:

1. Shall continue to register once every two years with the board and pay fifty per cent of the registration fee and one hundred per cent of any applicable late fee pursuant to section 32‑729.

2. Shall not engage in the practice of accounting in this state for a fee or other compensation while the registrant's certificate remains on inactive status.

3. In this state shall not assume or use the title or designation of "certified public accountant" or "public accountant" or the abbreviation "C.P.A.", "CPA", "P.A." or "PA" while the registrant's certificate remains on inactive status unless accompanied by the word "inactive".

C. Except as otherwise provided in this chapter, A registrant who elects to place a certificate on inactive status may reactivate the certificate request that the registrant's certificate be reactivated if the certificate has been inactive for six years or less by doing and if the registrant meets all of the following requirements:

1. Filing Files an application for renewal on the form prescribed by the board and paying pays the registration fee pursuant to section 32‑729.

2. Submitting Submits proof that the registrant has satisfied continuing professional education requirements as prescribed by the board.

3. Affirming Affirms that the registrant has not engaged in any conduct that would constitute grounds for revocation or suspension of a certificate pursuant to section 32‑741.

D. A registrant may reactivate an inactive certificate pursuant to subsection C of this section only once.

E. A certificate expires if it has been inactive for more than six years.

F. Subsections D and E of this section do not apply if inactive status is approved by the board for good cause based on a registrant's disability. END_STATUTE

Sec. 5. Section 32-730.02, Arizona Revised Statutes, is amended to read:

START_STATUTE32-730.02. Canceled status; reinstatement

A. A registrant may cancel a certificate or registration by submitting a written request on a form prescribed by the board. A registrant whose certificate or registration is under a disciplinary order by the board or against whom disciplinary proceedings have been initiated may not cancel the certificate or registration.

B. An individual whose certificate has been canceled shall not assume or use the title or designation of "certified public accountant" or "public accountant" or the abbreviation "C.P.A.", "CPA", "P.A." or "PA" while the certificate remains on canceled status unless the individual qualifies for limited reciprocity privilege pursuant to section 32‑725.

C. An individual whose certificate has been canceled and who does not qualify for certification by reciprocity pursuant to section 32‑721, subsection C may apply for reinstatement and the board may reinstate the certificate if the individual meets all of the following requirements:

1. Has not engaged in any conduct that would constitute grounds for revocation or suspension of a certificate pursuant to section 32‑741.

2. 1. Files an application for reinstatement on the form prescribed by the board and pays the reinstatement application fee pursuant to section 32‑729.

3. 2. Submits proof that the individual has satisfied continuing professional education requirements as prescribed by the board.

3. Affirms that the individual has not engaged in any conduct that would constitute grounds for revocation or suspension of a certificate pursuant to section 32‑741.

4. On board approval of reinstatement, pays the registration and reinstatement fees fee pursuant to section 32-729. END_STATUTE

Sec. 6. Section 32-730.03, Arizona Revised Statutes, is amended to read:

START_STATUTE32-730.03. Expired status; reinstatement

A. A registrant's certificate is expired if the registrant fails to reinstate the certificate within twelve months after it has been suspended pursuant to section 32‑741.01 or 32‑741.02 or fails to reinstate a certificate that has been on inactive status pursuant to section 32‑730.01 for more than six years.

B. An individual whose certificate has expired shall not assume or use the title or designation of "certified public accountant" or "public accountant" or the abbreviation "C.P.A.", "CPA", "P.A." or "PA" while the certificate remains on expired status unless the individual qualifies for limited reciprocity privilege pursuant to section 32‑725.

C. An individual whose certificate has expired may apply for reinstatement and the board may reinstate the certificate if the individual meets all of the following requirements:

1. Files an application for reinstatement on a form prescribed by the board and pays the reinstatement application fee pursuant to section 32‑729.

2. Has not engaged in any conduct that would constitute grounds for revocation or suspension of a certificate pursuant to section 32‑741.

3. 2. Submits proof that the individual has satisfied continuing professional education requirements as prescribed by the board.

3. Affirms that the individual Has not engaged in any conduct that would constitute grounds for revocation or suspension of a certificate pursuant to section 32-741.

4. On board approval of reinstatement, pays the registration fee pursuant to section 32‑729. END_STATUTE

Sec. 7. Section 32-730.04, Arizona Revised Statutes, is amended to read:

START_STATUTE32-730.04. Retired status; reactivation

A. A registrant who is at least fifty-five years of age, who has been a certified public accountant or public accountant in any jurisdiction one or more jurisdictions for at least twenty years and who is not actively engaged in the practice of accounting for a fee or other compensation may request that the registrant's certificate be placed on retired status by submitting a request on a form approved by the board. A registrant whose certificate is under a disciplinary order by the board or against whom disciplinary proceedings have been initiated may not place or maintain a certificate on retired status.

B. A registrant whose certificate is on retired status:

1. Shall continue to register once every two years with the board and pay a registration fee and all of an applicable late fee as prescribed by section 32‑729.

2. Shall not engage in the practice of accounting for a fee or other compensation while the registrant's certificate remains on retired status.

3. Shall not assume or use the title or designation of "certified public accountant" or "public accountant" or the abbreviation "C.P.A.", "CPA", "P.A." or "PA" unless accompanied by the word "retired" or the abbreviation "RET" while the registrant's certificate remains on retired status.

4. C. May apply for reinstatement and the board may reinstate the certificate if the registrant meets A registrant may request that the registrant's certificate be reactivated if the registrant meets all of the following requirements:

1. Files an application for renewal on the form prescribed by the board and pays the registration fee pursuant to section 32‑729.

(a) 2. Submits proof that the registrant has satisfied continuing professional education requirements as prescribed by the board.

(b) Pays the registration fee pursuant to section 32‑729.

3. Affirms that the registrant has not engaged in any conduct that would constitute grounds for revocation or suspension of a certificate pursuant to section 32‑741. END_STATUTE

Sec. 8. Section 32-731, Arizona Revised Statutes, is amended to read:

START_STATUTE32-731. Certified public accountant partnership; qualifications

A. Except as provided in section 32‑725, subsection G, once every two years a partnership engaged in this state in the practice of accounting by certified public accountants shall pay the registration fee pursuant to section 32‑729 and register once every two years with the board as a partnership of certified public accountants and shall meet the following requirements:

1. At least one partner shall be a resident and a full‑time practicing certified public accountant in good standing in this state.

2. At least fifty‑one per cent of the ownership of the partnership, in terms of direct and indirect financial interests and voting rights, must belong to holders in good standing of certificates or licenses to practice accounting as certified public accountants in any state or foreign country. Only certified public accountants whose qualifications are considered to be substantially equivalent, as provided by section 32‑721, subsections C and D, may be considered as meeting the requirement prescribed by this paragraph.

B. A partnership registered with the board pursuant to this section may include owners who are not certified pursuant to this chapter if all of the following apply:

1. The partnership designates an individual who is certified pursuant to this chapter and who is responsible for the proper registration of the firm.

2. All noncertified partners actively participate in the management of the partnership or a directly affiliated entity that has been approved by the board. For the purposes of this paragraph:

(a) A partner actively participates if all of the following occur:

(i) The partner performs at least five hundred hours of professional services for the public accounting partnership during the calendar year.

(ii) The professional services performed constitute the partner's principal occupation.

(iii) The partner's interest in the public accounting partnership reverts to the partnership if the partner stops performing services for the partnership.

(b) "Directly affiliated entity" means a firm in which each owner of an equity interest in the entity actively participates in the business of providing services to the firm's clients.

3. Any partner who is ultimately responsible for supervising attest services in this state or the partner who signs any reports related to attest services on behalf of the partnership in this state shall be certified pursuant to this chapter and shall meet the experience requirements for carrying out these functions adopted by the board in its rules.

4. The partnership complies with other requirements imposed by the board in its rules.

C. Application for registration pursuant to this section shall be made on affidavit of a partner of the partnership who is a certified public accountant in good standing in this state. The board in each case shall determine whether the applicant is eligible for registration. A partnership that is registered pursuant to this section may use the words "certified public accountants" or the abbreviation "C.P.A.'s" or "CPA's" in connection with its partnership name as provided for by the board in its rules. Partnerships registered pursuant to this chapter may provide attest services. Notification shall be given to the board within one month of the termination of any partnership, or of the admission to or withdrawal of an Arizona partner from any partnership registered pursuant to this section.

D. A partnership that applies for an initial registration or a renewal pursuant to this section shall list in its application all states in which the partnership has applied for or holds a registration, license or permit as a certified public accountant partnership and shall list any past denials, revocations or suspensions of registrations, licenses or permits by any other state.

E. An applicant for registration or a partnership registered pursuant to this section shall notify the board in writing within one month of any change of partners whose principal place of business is in this state, any change in the number or location of offices of the partnership in this state, any change in the identity of the individuals in charge of the partnership's offices in this state and any issuance, denial, revocation or suspension of a registration, license or permit by any other state.

F. A partnership that fails to comply with this section due to changes in the ownership of the firm or personnel after receiving or renewing the registration must take corrective action to comply with this section as quickly as possible. The board may grant a reasonable period of time for the firm to take these corrective actions. A failure to comply with these requirements is grounds for suspension or revocation of the partnership registration. END_STATUTE

Sec. 9. Section 32-732, Arizona Revised Statutes, is amended to read:

START_STATUTE32-732. Public accountant partnership; requirements

A. once every two years a partnership engaged in this state in the practice of public accounting as public accountants shall pay the registration fee pursuant to section 32‑729 and register biennially with the board as a partnership of public accountants and shall meet the following requirements:

1. All public accountant members of the partnership shall be residents in good standing in this state.

B. A partnership registered with the board pursuant to this section may include owners who are not public accountants if all of the following apply:

1. The partnership designates a person who is a public accountant and who is responsible for the proper registration of the firm.

2. All partners who are not public accountants actively participate in the management of the partnership or a directly affiliated entity that has been approved by the board. For the purposes of this paragraph:

(a) A partner actively participates if all of the following occur:

(i) The partner performs at least five hundred hours of professional services for the public accounting partnership during the calendar year.

(ii) The professional services performed constitute the partner's principal occupation.

(iii) The partner's interest in the public accounting partnership reverts to the partnership if the partner stops performing services for the partnership.

(b) "Directly affiliated entity" means a firm where each owner of an equity interest in the entity actively participates in the business of providing services to the firm's clients.

3. Any person who is responsible for supervising attest services or for signing reports on financial statements on behalf of the partnership shall be certified pursuant to this chapter and shall meet the experience requirements for carrying out these functions adopted by the board in its rules.

4. The partnership complies with other requirements imposed by the board in its rules.

C. Application for registration pursuant to this section shall be made upon affidavit of a partner of the partnership who is a certified public accountant or public accountant in good standing in this state. The board in each case shall determine whether the applicant is eligible for registration. A partnership that is registered pursuant to this section and that holds a certificate issued pursuant to this chapter may use the words "public accountants" or the abbreviation "P.A.'s" or "PA's" in connection with its partnership name as provided for by the board in its rules. Each partnership registered pursuant to this chapter may provide attest services. Notification shall be given to the board within one month of the termination of any partnership, or of the admission to or withdrawal of an Arizona partner from any partnership registered pursuant to this section.

D. A partnership that applies for an initial registration or a renewal pursuant to this section shall list in its application all states in which the partnership has applied for or holds a registration, license or permit as a public accountant partnership and shall list any past denials, revocations or suspensions of registrations, licenses or permits by any other state.

E. An applicant for registration or a partnership registered pursuant to this section shall notify the board in writing within one month of any change of partners whose principal place of business is in this state, any change in the number or location of offices of the partnership in this state, any change in the identity of the persons in charge of the partnership's offices in this state and any issuance, denial, revocation or suspension of a registration, license or permit by any other state.

F. A partnership that desires to practice under this chapter must register with the board for a two-year period in the month of the effective date of the formation of the firm and every two years thereafter and pay a registration fee of at least one hundred dollars but not more than three hundred dollars for the privilege of practicing in this state. A partnership registering for less than two years must pay a pro rata portion of the fee.

G. F. A partnership that fails to comply with this section due to changes in the ownership of the firm or personnel after receiving or renewing the registration must take corrective action to comply with this section as quickly as possible. The board may grant a reasonable period of time for the firm to take these corrective actions. A failure to comply with these requirements is grounds for suspension or revocation of the partnership registration. END_STATUTE

Sec. 10. Section 32-741.01, Arizona Revised Statutes, is amended to read:

START_STATUTE32-741.01. Suspension for nonregistration; expiration of certificate

A. The certificate of any registrant who fails to timely register and pay the biennial registration fee as required by section 32‑729 is automatically suspended without prior notice or a hearing.

B. A registrant whose certificate is suspended shall not assume or use the title or designation of "certified public accountant" or "public accountant" or the abbreviation "C.P.A.", "CPA", "P.A." or "PA" while the registrant's certificate remains on suspended status.

C. A suspension under this section is not a disciplinary order and is vacated when the board has determined that the registrant has paid all past due fees and has satisfied all other requirements for renewal.

D. If the registrant fails to renew the registrant's registration within twelve months after the date of suspension, the certificate expires. END_STATUTE

Sec. 11. Section 32-742, Arizona Revised Statutes, is amended to read:

START_STATUTE32-742. Revocation or suspension of firm's registration; failure to renew; reinstatement

A. After notice and an opportunity for a hearing, the board shall revoke a firm's registration to practice public accounting if at any time it does not have all the qualifications prescribed by this chapter.

B. After notice and an opportunity for a hearing, the board may revoke or suspend a firm's registration to practice public accounting and may additionally take disciplinary action concerning the registrant for any of the causes enumerated in section 32‑741, subsection A or for any of the following additional causes:

1. The revocation or suspension of any certificate issued by the board of any partner, shareholder, member, manager, officer, director, agent or employee of the firm.

2. The cancellation, revocation, suspension or refusal to renew the authority of the firm or any Arizona partner, shareholder, member, manager, officer, director, agent or employee to practice public accounting in any other state for any cause other than failure to pay an annual a registration fee in the other state.

C. The board shall suspend, without notice or hearing, the registration to practice public accounting of any firm that fails to register as required by section 32‑730 and pay the biennial registration fee as required by section 32‑730 32‑729. Terms of a suspension issued under this subsection shall include a provision that the suspension shall be vacated when the registrant has paid all past due fees and penalties. If the firm fails to reinstate its registration within twelve months after the date of suspension, the registration expires.

D. A firm whose registration has expired for failure to renew may apply for reinstatement. The board may reinstate the registration if the firm meets all of the following requirements:

1. Files an application on a form prescribed by the board.

2. Has not engaged in any conduct that would constitute grounds for revocation or suspension of a registration pursuant to section 32‑741.

3. On board approval of reinstatement, pays the registration fee pursuant to section 32‑729. END_STATUTE