COMMITTEE ON COMMERCE AND WORKFORCE DEVELOPMENT
SENATE AMENDMENTS TO H.B. 2218
(Reference to House engrossed bill)
Page 6, between lines 28 and 29, insert:
“Sec. 4. Section 32-730.01, Arizona Revised Statutes, is amended to read:
32-730.01. 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 EXCEPT FOR SUSPENSION FOR NONREGISTRATION PURSUANT TO SECTION 32-741.01, 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 PERCENT of the registration fee and one hundred per cent PERCENT 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. A registrant may request that the registrant's certificate be reactivated if the certificate has been inactive for six years or less and 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.
2. Submits proof that the registrant has satisfied continuing professional education requirements as prescribed by the board.
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.
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.
Sec. 5. Section 32-730.02, Arizona Revised Statutes, is amended to read:
32-730.02. Canceled status; reinstatement
A. A registrant may cancel a certificate or A FIRM 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, EXCEPT FOR SUSPENSION FOR NONREGISTRATION PURSUANT TO SECTION 32-741.01, 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. Files an application for reinstatement on the form prescribed by the board and pays the reinstatement application fee pursuant to section 32‑729.
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.
D. A FIRM WHOSE REGISTRATION HAS BEEN CANCELED MAY APPLY FOR REINSTATEMENT AND THE BOARD MAY REINSTATE THE FIRM’S REGISTRATION WITH A NEW EFFECTIVE DATE OF THE FIRM’S FORMATION IF THE FIRM MEETS ALL OF THE FOLLOWING REQUIREMENTS:
1. FILES AN APPLICATION ON A FORM PRESCRIBED BY THE BOARD AND PAYS THE REGISTRATION FEE PURSUANT TO SECTION 32-729.
2. MEETS THE REQUIREMENTS OF SECTION 32-731.
Sec. 6. Section 32-730.03, Arizona Revised Statutes, is amended to read:
32-730.03. Expired status; reinstatement
A. A registrant's certificate OR A FIRM REGISTRATION is expired if the registrant fails to reinstate the certificate OR FIRM REGISTRATION 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 OR FIRM REGISTRATION 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 OR FIRM REGISTRATION 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. 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.
D. A FIRM WHOSE REGISTRATION HAS EXPIRED MAY APPLY FOR REINSTATEMENT AND THE BOARD MAY REINSTATE THE FIRM’S REGISTRATION WITH A NEW EFFECTIVE DATE OF THE FIRM’S FORMATION IF THE FIRM MEETS ALL OF THE FOLLOWING REQUIREMENTS:
1. FILES AN APPLICATION ON A FORM PRESCRIBED BY THE BOARD AND PAYS THE REGISTRATION FEE PURSUANT TO SECTION 32-729.
2. MEETS THE REQUIREMENTS OF SECTION 32-731.
Sec. 7. Section 32-730.04, Arizona Revised Statutes, is amended to read: 32-730.04. 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 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 EXCEPT FOR SUSPENSION FOR NONREGISTRATION PURSUANT TO SECTION 32-741.01 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.
C. 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.
2. Submits proof that the registrant has satisfied continuing professional education requirements as prescribed by the board.
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.
Sec. 8. Section 32-731, Arizona Revised Statutes, is amended to read:
32-731. Certified public accountant partnership; qualifications; definitions
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 OR PUBLIC ACCOUNTANTS shall pay the registration fee pursuant to section 32‑729 and register 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 percent 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 OR PUBLIC ACCOUNTANTS in any state or foreign country JURISDICTION. Only certified public accountants OR 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 ACCOUNTING services for the public accounting partnership during the calendar year.
(ii) The professional ACCOUNTING 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 OR QUALIFIED TO EXERCISE THE LIMITED RECIPROCITY PRIVILEGE PURSUANT TO SECTION 32-725 SUBSECTION G 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 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 may use the words "certified public accountants" or the abbreviation "C.P.A.'s" or "CPA's" OR 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. 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 JURISDICTIONS 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 JURISDICTION.
E. An applicant for registration or a partnership registered pursuant to this section shall notify the board in writing within one month, AND THE BOARD MAY GRANT A REASONABLE PERIOD OF TIME, IF NECESSARY, FOR THE FIRM TO TAKE CORRECTIVE ACTION, OF ANY OF THE FOLLOWING:
1. TERMINATION OF ANY PARTNERSHIP
2. THE ADMISSION TO, WITHDRAWAL OF, CHANGE OF RESIDENCE TO ANOTHER JURISDICTION FROM THIS STATE OR CHANGE OF ADDRESS FROM ANOTHER JURISDICTION TO THIS STATE OR DEATH OF A CERTIFIED PUBLIC ACCOUNTANT OR PUBLIC ACCOUNTANT PARTNER FROM ANY PARTNERSHIP REGISTERED PURSUANT TO THIS SECTION.
3. ANY CHANGE BY ANY JURISDICTION IN THE CERTIFICATE OR LICENSE STATUS OF A CERTIFIED PUBLIC ACCOUNTANT OR PUBLIC ACCOUNTANT OWNER OF THE PARTNERSHIP THAT PREVENTS THEIR CERTIFICATE OR LICENSE FROM BEING IN GOOD STANDING OR THAT PREVENTS THEIR RIGHT TO PRACTICE ACCOUNTING AS A CERTIFIED PUBLIC ACCOUNTANT OR PUBLIC ACCOUNTANT IN THAT JURISDICTION.
4. 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 AND 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.
F. PROFESSIONAL CORPORATIONS COMPOSED OF CERTIFIED PUBLIC ACCOUNTANTS OR PUBLIC ACCOUNTANTS SHALL MEET THE REQUIREMENTS OF TITLE 10, CHAPTER 20 AND ANY ADDITIONAL NONCONFLICTING REQUIREMENTS CONTAINED IN THIS SECTION.
G. LIMITED LIABILITY COMPANIES, PROFESSIONAL LIMITED LIABILITY COMPANIES AND LIMITED LIABILITY PARTNERSHIPS COMPOSED OF CERTIFIED PUBLIC ACCOUNTANTS OR PUBLIC ACCOUNTANTS SHALL MEET THE REQUIREMENTS OF TITLE 29, CHAPTERS 4 OR 5 AND ANY ADDITIONAL NONCONFLICTING REQUIREMENTS CONTAINED IN THIS SECTION.
H. for purposes of this section:
1. “partner” includes any shareholder of a professional corporation and any member of a limited liability company or professional limited liability company.
2. “partnership” includes a professional corporation, a limited liability company and a professional limited liability company.
Sec. 9. Repeal
Section 32-732, Arizona Revised Statutes, is repealed.
Sec. 10. Repeal
Section 32-734, Arizona Revised Statutes, is repealed.
Sec. 11. Repeal
Section 32-735, Arizona Revised Statutes, is repealed.”
Renumber to conform
Page 8, between lines 25 and 26, insert:
“Sec. 13. Section 32-741.01, Arizona Revised Statutes, is amended to read:
32-741.01. Suspension for nonregistration; expiration of certificate
A. The certificate OR FIRM REGISTRATION 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 OR FIRM REGISTRATION 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 OR FIRM REGISTRATION expires.”
Renumber to conform
Page 11, line 34, strike “and” insert “or”
Line 35, strike “additionally”
Line 44, strike “other state” insert “jurisdiction”
After line 45, insert:
“3. a partnership that fails to comply with the provisions of section 32-731 subsection e.”
Page 12, strike lines 1 through 17
Amend title to conform