Read the latest edition of NASBA's Legislative E-news
Read the latest edition of NASBA's Legislative E-news
April 2018
Building an Advocacy Coalition for Greater Action, Accountability and Public Protection 
NASBA and the AICPA -- along with regulatory associations that represent the architecture, medicine, pharmacy, and psychology professions – have joined forces to combat legislative efforts that will have a negative impact on the regulatory community. 
Michigan Governor Signs Firm Mobility and CPE Reciprocity Into Law
The Uniform Accountancy Act is designed to achieve several objectives, chief among them advancing the goal of uniformity. In Michigan, legislation was recently introduced and signed into law by Governor Snyder. The bill embraced the UAA provisions relating to Continuing Professional Education (CPE) reciprocity and firm mobility.

To view Michigan HB 5236, click on the above “LEGISLATION BY TOPIC” link and then on the “CPE Related” or “Firm Mobility” buttons; you may also click on “LEGISLATION BY JURISDICTION” and then click on Michigan within the map to see a list of legislative bills from the state.

Major Kentucky Legislation that Provides for Firm Mobility, CPE Reciprocity and Peer Review Updates Signed Into Law 
House Bill 177 amends KRS 325.220 to: define "peer review" as designed to promote quality in "accounting and auditing services"; change "peer review committee" to " sponsoring organization"; amend KRS 325.301 to allow an out-of-state CPA firm to perform attest services within Kentucky; exempt out-of-state CPA firms from paying the initial application fee; require firms to grant the Accountancy Board access to peer review documents maintained in Facilitated State Board Access; allow the Board to appoint a peer review oversight committee to monitor the peer review program; amend KRS 325.340 to allow the Board to privately reprimand CPAs and CPA firms; allow CPAs and CPA firms to apply to have minor violations removed from their professional record after ten years; and limit a licensee from having his or her record expunged more than once.

To view Kentucky HB 177, click on the above “LEGISLATION BY TOPIC” link and then on the “Peer Review” or “Firm Mobility” buttons; you may also click on “LEGISLATION BY JURISDICTION” and then click on Kentucky within the map to see a list of legislative bills from the state.

Montana Rule Change Allows for CPE Reciprocity
Rule 24.201.2106 was recently amended to allow for a nonresident Montana licensee to meet the CPE requirements by meeting the CPE requirements in the state where his/her principal place of business is located.   
Indiana Legislation Signed Into Law Limits Board’s Ability to Deny Licensure Due to Past Criminal Convictions  
HB 1245 provides that the state and a local governmental unit shall explicitly list the crimes that will disqualify an individual from receiving an occupational license. It notes that a disqualifying criminal conviction is limited to a crime that specifically and directly relates to the duties and responsibilities of the occupation for which the individual is applying for or holds a license. It also provides that the period of disqualification may not exceed five years unless the individual: (1) was convicted of a crime of violence, or an offense relating to a criminal sexual act; or (2) is convicted of a second or subsequent crime during the disqualification period. Finally, the bill stipulates that an individual having a criminal conviction may at any time petition the board or unit requiring a license for a determination as to whether the individual's criminal conviction will disqualify the individual from receiving that license.

To view Indiana HB 1245, click on the above “LEGISLATION BY TOPIC” link and then on the “Licensure” button; you may also click on “LEGISLATION BY JURISDICTION” and then click on Indiana within the map to see a list of legislative bills from the state.

View other legislation filed that limits a Board’s ability to deny licensure or impose discipline because of past criminal convictions. 

Update on the Western Governors’ Association Proposed Temporary License Interstate Compact
  • South Dakota: Governor Daugaard’s temporary licensure compact (House Bill 1319) was defeated in the House in a vote where 46 opposed and 18 favored the bill. NASBA was pleased to provide support to the South Dakota Board of Accountancy that offered convincing arguments that this proposal purported to solve a problem that does not exist for most professions—including accountancy, which already has proven mobility processes in place, and such a bill would negatively impact public health, safety, and welfare. Prior to the HB 1319 being introduced and defeated, several professions—not including accounting—supported the pre-emptive introduction of Senate Bill 172, which would exempt certain professions from the compact proposal. Because of both bills, there were several House and Senate hearings in the last two weeks to push both bills through their respective chambers. South Dakota’s session concluded on March 26.

  • Missouri: On February 6, Missouri Representative Derek Grier (R) introduced House Bill 2398 - the same temporary licensure compact legislation that was introduced in South Dakota. During a public hearing held on February 21, the chairman of the Professional Registration and Licensing Committee indicated there needs to be a closer look at boards who already have processes in place for reciprocity before next steps are taken with this bill. NASBA will continue to monitor, provide support to the Missouri Board of Accountancy, and work with other coalition partners regarding this legislation. Missouri’s session is scheduled to conclude on May 18. 

  • Arizona: In addition to South Dakota and Missouri, Senator John Kavanagh (R) introduced a temporary licensure compact bill (Senate Bill 1184). It appears, based on a meeting held by our coalition partners at the National Council of Architectural Registration Boards (NCARB), the bill sponsor was receptive to feedback and is looking to send this bill to a study committee to determine the correct occupations and professions that would benefit from this type of legislation. Additionally, Senator Kavanagh will look to draft future compact legislation that allows professions to opt in rather than having to opt out of a compact. NASBA will continue to watch and work closely with our coalition partners.  
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Three venerable institutions - the Institute of Chartered Accountants of Scotland (ICAS), a professional body for accountants that is headquartered in the United Kingdom (UK); the American Institute of CPAs (AICPA), the world’s largest member association representing the CPA profession; and the National Association of State Boards of Accountancy (NASBA), a forum for the 55 U.S. Boards of Accountancy which license more than 650,000 U.S. CPAs -- have signed an agreement that will provide a streamlined process for accounting professionals to practice internationally.
The continuous improvement of the Uniform CPA Examination (Exam) is necessary to ensure the Exam continues to align with professional practice, reflect the needs of today’s profession and the work of newly licensed CPAs, and support the regulatory responsibility of the Boards of Accountancy to license CPAs.