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General Assembly Raised Bill No. 7020
January Session, 2025
LCO No. 5159
Referred to Committee on GENERAL LAW
Introduced by:
(GL)
AN ACT CONCERNING CERTIFIED PUBLIC ACCOUNTANTS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 20-279b of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective October 1, 2025): 2
As used in this section and sections 20-280 to 20-281n, inclusive, as 3
amended by this act: 4
(1) "Board" means the State Board of Accountancy established by 5
section 20-280, as amended by this act; 6
(2) "Certificate" means a "certified public accountant" certificate 7
issued either prior to October 1, 1992, or pursuant to section 20-281c, as 8
amended by this act, or a "certified public accountant" certificate issued 9
after examination pursuant to the laws of any other state; 10
(3) "Firm" means any person, proprietorship, partnership, 11
corporation, limited liability company or association and any other legal 12
entity which practices public accountancy; 13 Raised Bill No. 7020
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(4) "License" means a public accountancy license issued pursuant to 14
section 20-281b or 20-281d; 15
(5) "Licensee" means the holder of a certificate issued pursuant to 16
section 20-281c, as amended by this act, the holder of a license issued 17
pursuant to section 20-281b or 20-281d or a holder of a permit to practice 18
public accountancy issued pursuant to sections 20-281b and 20-281e; 19
(6) "Permit" means a permit to practice public accountancy issued to 20
a firm pursuant to section 20-281e; 21
(7) "Practicing public accountancy" means performing for the public 22
or offering to perform for the public for a fee by a person or firm holding 23
himself, herself or itself out to the public as a licensee one or more kinds 24
of services involving the use of accounting or auditing skills, including, 25
but not limited to, the issuance of reports or of one or more kinds of 26
management advisory, financial advisory or consulting services, or the 27
preparation of tax returns or the furnishing of advice on tax matters; 28
(8) "Quality review" means any study, appraisal or review of one or 29
more aspects of the professional work of a person or firm which 30
practices public accountancy by a person or persons who holds or hold 31
licenses under section 20-281b or 20-281d or their equivalent under the 32
laws of any other state and who are not affiliated with the person or firm 33
being reviewed; 34
(9) "Registration" means the process by which the holder of a 35
certificate may register his or her certificate annually and pay a fee of 36
twenty dollars in lieu of an annual renewal of a license and be entitled 37
to use the abbreviation "CPA" and the title "certified public accountant" 38
under conditions and in the manner prescribed by the board by 39
regulation; 40
(10) "Profession" means the profession of public accountancy; 41
(11) "Report" means, in reference to any attest or compilation service, 42
any opinion, writing or other form of language that (A) expresses or 43 Raised Bill No. 7020
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implies assurance as to the reliability of the attested information or 44
compiled financial statements, and (B) contains or is accompanied by a 45
statement that expresses or implies that the person or firm issuing such 46
opinion, writing or other language has special knowledge or 47
competence in accounting or auditing, which expression or implication 48
arises from, among other things, the use of names or titles by the issuer 49
indicating that the person or firm is an accountant or auditor or from the 50
language of the report itself. "Report" includes any form of language that 51
disclaims an opinion when such form of language is conventionally 52
understood to imply any positive assurance as to the reliability of the 53
attested information or compiled financial statements referred to or 54
special competence on the part of the person or firm issuing such 55
language, including any other form of language that is conventionally 56
understood to imply such assurance or special knowledge or 57
competence; 58
(12) "AICPA" means the American Institute of Certified Public 59
Accountants; 60
(13) "Attest" means the provision of any of the following services: 61
(A) Any audit or other engagement to be performed in accordance 62
with the Statements on Auditing Standards (SAS); 63
(B) Any review of a financial statement to be performed in accordance 64
with the Statements on Standards for Accounting and Review Services 65
(SSARS); 66
(C) Any examination of prospective financial information to be 67
performed in accordance with the Statements on Standards for 68
Attestation Engagements (SSAE); 69
(D) Any engagement to be performed in accordance with the 70
Auditing Standards of the PCAOB; and 71
(E) Any examination, review or agreed upon procedures engagement 72
to be performed in accordance with the Statements on Standards for 73 Raised Bill No. 7020
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Attestation Engagements (SSAE), other than an examination as 74
described in subparagraph (C) of this subdivision; 75
(14) "Compilation" means the provision of a service to be performed 76
in accordance with Statements on Standards for Accounting and Review 77
Services (SSARS) that is presented in the form of financial statements 78
that is the representation of management without undertaking to 79
express any assurance on the statements; 80
(15) "Home office" means the location specified by the client as the 81
address to which a service described in section 20-281n, as amended by 82
this act, is directed; 83
[(16) "NASBA" means the National Association of State Boards of 84
Accountancy;] 85
[(17)] (16) "PCAOB" means the Public Company Accounting 86
Oversight Board; 87
[(18)] (17) "Practice privilege" means the privilege for a person or firm 88
to practice public accountancy described in, and subject to the 89
conditions contained in, sections 20-281e and 20-281n, as amended by 90
this act; and 91
[(19)] (18) "Principal place of business" means the office location 92
designated by an individual or firm for purposes of sections 20-281e and 93
20-281n, as amended by this act. [;] 94
[(20) "Substantial equivalency" is a determination by the board of 95
accountancy or its designee that the education, examination and 96
experience requirements contained in the statutes and administrative 97
rules of another jurisdiction are comparable to, or exceed, the education, 98
examination and experience requirements contained in the Uniform 99
Accountancy Act or that an individual certified public accountant's 100
education, examination and experience qualifications are comparable 101
to, or exceed, the education, examination and experience requirements 102
contained in the Uniform Accountancy Act.] 103 Raised Bill No. 7020
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Sec. 2. Subsection (g) of section 20-280 of the general statutes is 104
repealed and the following is substituted in lieu thereof (Effective October 105
1, 2025): 106
(g) The board may adopt regulations, in accordance with chapter 54, 107
governing its administration and enforcement of sections 20-279b to 20-108
281m, inclusive, as amended by this act, and the conduct of licensees 109
and registrants, including, but not limited to: 110
(1) Regulations governing the board's meetings and the conduct of its 111
business; 112
(2) Regulations concerning procedures governing the conduct of 113
investigations and hearings by the board; 114
(3) Regulations [specifying] implementing the [educational 115
qualifications required] education requirements established for the 116
issuance of certificates under section 20-281c, as amended by this act, 117
implementing the experience [required] requirements established for 118
initial issuance of certificates under section 20-281c, as amended by this 119
act, and specifying the continuing professional education required for 120
renewal of licenses under subsection (e) of section 20-281d; 121
(4) Regulations concerning professional conduct directed to 122
controlling the quality and probity of the practice of public accountancy 123
by licensees, and dealing among other things with independence, 124
integrity, objectivity, competence, technical standards, responsibilities 125
to the public and responsibilities to clients; 126
(5) Regulations specifying actions and circumstances that shall be 127
deemed to constitute holding oneself out as a licensee in connection 128
with the practice of public accountancy; 129
(6) Regulations governing the manner and circumstances of use by 130
holders of certificates who do not also hold licenses under sections 20-131
279b to 20-281m, inclusive, as amended by this act, of the titles "certified 132
public accountant" and "CPA"; 133 Raised Bill No. 7020
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(7) Regulations regarding quality reviews that may be required to be 134
performed under the provisions of sections 20-279b to 20-281m, 135
inclusive, as amended by this act; 136
(8) Regulations implementing the provisions of section 20-281l, 137
including, but not limited to, specifying the terms of any disclosure 138
required by subsection (d) of said section 20-281l, the manner in which 139
such disclosure is made and any other requirements the board imposes 140
with regard to such disclosure. Such regulations shall require that any 141
disclosure: (A) Be in writing and signed by the recipient of the product 142
or service; (B) be clear and conspicuous; (C) state the amount of the 143
commission or the basis on which the commission will be calculated; (D) 144
identify the source of the payment of the commission and the 145
relationship between such source and the person receiving payment; 146
and (E) be presented to the client at or prior to the time the 147
recommendation of the product or service is made; 148
(9) Regulations establishing the due date for any fee charged 149
pursuant to sections 20-281c, as amended by this act, 20-281d and 20-150
281e. Such regulations may establish the amount and due date of a late 151
fee charged for the failure to remit payment of any fee charged pursuant 152
to sections 20-281c, as amended by this act, 20-281d and 20-281e; and 153
(10) Such other regulations as the board may deem necessary or 154
appropriate for implementing the provisions and the purposes of 155
sections 20-279b to 20-281m, inclusive, as amended by this act. 156
Sec. 3. Section 20-281c of the general statutes is repealed and the 157
following is substituted in lieu thereof (Effective October 1, 2025): 158
(a) The board shall grant the certificate of "certified public 159
accountant" to any person who meets the good character, education, 160
experience and examination requirements of subsections (b) to [(e)] (f), 161
inclusive, of this section and upon the payment of a fee of one hundred 162
fifty dollars. 163
(b) Good character for purposes of this section means lack of a history 164 Raised Bill No. 7020
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of dishonest or felonious acts. The board may refuse to grant a certificate 165
on the grounds of failure to satisfy this requirement only if there is a 166
substantial connection between the lack of good character of the 167
applicant and the professional responsibilities of a licensee and if the 168
finding by the board of lack of good character is supported by clear and 169
convincing evidence, and when based upon the prior conviction of a 170
crime, is in accordance with the provisions of section 46a-80. When an 171
applicant is found to be unqualified for a certificate because of a finding 172
of lack of good character, the board shall furnish the applicant a 173
statement containing the findings of the board and a complete record of 174
the evidence upon which the determination was based. 175
(c) An applicant may apply to take the examination if such person, at 176
the time of the examination, has completed not less than one hundred 177
twenty semester hours of education, as determined by the board by 178
regulation to be appropriate. The [educational] education requirements 179
for a certificate shall be [prescribed in regulations to be adopted by the 180
board] as follows: 181
(1) [Until December 31, 1999, a] A baccalaureate degree or its 182
equivalent conferred by a college or university acceptable to the board, 183
with an accounting concentration or equivalent as determined by the 184
board by regulation to be appropriate; 185
(2) [After January 1, 2000, at] At least one hundred fifty semester 186
hours of college education including a baccalaureate or higher degree 187
conferred by a college or university acceptable to the board. The total 188
educational program shall include an accounting concentration or 189
equivalent, as determined by the board by regulation to be appropriate; 190
or 191
(3) A master's degree or its equivalent conferred by a college or 192
university acceptable to the board, with an accounting concentration or 193
equivalent as determined by the board by regulation to be appropriate. 194
(d) The board may charge each applicant a fee, in an amount 195
prescribed by the board by regulation, for each section of the 196 Raised Bill No. 7020
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examination or reexamination taken by the applicant, or the board may 197
authorize a third party administering the examination to charge each 198
applicant a fee for each section of the examination or reexamination 199
taken by the applicant. 200
(e) The board shall allow an applicant who applies to take the 201
examination on or after October 1, 2023, to receive credit for each section 202
of the examination that such applicant passes in any sitting for such 203
examination, provided such applicant passes all sections of the 204
examination within a thirty-month period. The board may, in its 205
discretion, extend the thirty-month period for reasons related to health, 206
military service or other individual hardship. 207
(f) The experience requirement for a certificate shall be [as prescribed 208
by the board by regulation] as follows: 209
(1) Two years if the applicant is applying for a certificate based on the 210
education requirement established in subdivision (1) of subsection (c) of 211
this section; or 212
(2) One year if the applicant is applying for a certificate based on the 213
education requirement established in subdivision (2) or (3) of subsection 214
(c) of this section. 215
(g) The holder of a certificate may register his or her certificate 216
annually and pay a fee of forty dollars in lieu of an annual renewal of a 217
license and such registration shall entitle the registrant to use the 218
abbreviation "CPA" and the title "certified public accountant" under 219
conditions and in the manner prescribed by the board by regulation. 220
Sec. 4. Section 20-281n of the general statutes is repealed and the 221
following is substituted in lieu thereof (Effective October 1, 2025): 222
(a) (1) [Any] Except as provided in subdivision (2) of this subsection, 223
any individual whose principal place of business is not in this state [shall 224
be presumed to have qualifications substantially equivalent to this 225
state's requirements and] shall qualify for a practice privilege and have 226 Raised Bill No. 7020
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all the privileges of licensees of this state without the need to obtain a 227
license pursuant to section 20-281d if [:] 228
[(1) Such] such individual holds a valid license as a Certified Public 229
Accountant from any state [which the NASBA National Qualification 230
Appraisal Service has verified to be in substantial equivalence with the 231
CPA licensure requirements of the AICPA/NASBA Uniform 232
Accountancy Act; or 233
(2) Such individual holds a valid license as a Certified Public 234
Accountant from any state which the NASBA National Qualification 235
Appraisal Service has not verified to be in substantial equivalence with 236
the CPA licensure requirements of the AICPA/NASBA Uniform 237
Accountancy Act and the individual obtains from the NASBA National 238
Qualification Appraisal Service verification that such individual's CPA 239
qualifications are substantially equivalent to the CPA licensure 240
requirements of the AICPA/NASBA Uniform Accountancy Act. Any 241
individual who passed the Uniform CPA Examination and holds a valid 242
license issued by any other state prior to January 1, 2012, may be exempt 243
from the education requirement in the Uniform Accountancy Act for 244
purposes of this subdivision] and meets the good character, education, 245
experience and examination requirements of subsections (b) to (f), 246
inclusive, of section 20-281c, as amended by this act, and any regulations 247
adopted by the board pursuant to subdivision (3) of subsection (g) of 248
section 20-280, as amended by this act. 249
(2) The board may decline to allow the licensees of another state to 250
exercise the practice privilege afforded under this section or have all of 251
the privileges of licensees of this state without the need to obtain a 252
license pursuant to section 20-281d if the board determines, in the 253
board's discretion, that (A) such other state imposes good character, 254
education, experience or examination requirements that are less 255
stringent than the good character, education, experience or examination 256
requirements of subsections (b) to (f), inclusive, of section 20-281c, as 257
amended by this act, and any regulations adopted by the board 258
pursuant to subdivision (3) of subsection (g) of section 20-280, as 259 Raised Bill No. 7020
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amended by this act, and (B) the good character, education, experience 260
or examination requirements imposed by such other state are 261
insufficient to protect consumers in this state. 262
(b) Notwithstanding any provision of the general statutes, any 263
individual who qualifies for [a practice privilege] the privileges afforded 264
under this section may offer or render professional services, whether in 265
person or by mail, telephone or electronic means, based on [a practice 266
privilege] such privileges, and no notice, fee or other submission shall 267
be required of any such individual. Such individual shall be subject to 268
the requirements in subsection (c) of this section. 269
(c) Any individual licensee of another state exercising the [privilege] 270
privileges afforded under this section and the firm that employs such 271
licensee shall consent, as a condition of the grant of such [privilege] 272
privileges: 273
(1) To the personal and subject matter jurisdiction and disciplinary 274
authority of the board; 275
(2) To comply with any applicable provision of state law and the 276
board's rules; 277
(3) That in the event the license from the state of such individual's 278
principal place of business is no longer valid, such individual shall cease 279
offering or rendering professional services in this state individually and 280
on behalf of a firm; and 281
(4) To the appointment of the state board that issued such license as 282
the agent upon whom process may be served in any action or 283
proceeding by the board against such licensee. 284
(d) Any individual who qualifies for [practice] the privileges afforded 285
under this section who, for any entity with its home office in this state, 286
performs any of the following services: (1) Any financial statement audit 287
or other engagement to be performed in accordance with Statements on 288
Auditing Standards; (2) any review of a financial statement to be 289 Raised Bill No. 7020
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performed in accordance with the Statements on Standards for 290
Accounting and Review Services; (3) any examination of prospective 291
financial information, review or agreed upon procedures engagement 292
to be performed in accordance with Statements on Standards for 293
Attestation Engagements; or (4) any engagement to be performed in 294
accordance with PCAOB Auditing Standards, may only provide such 295
services through a firm that has obtained a permit issued under section 296
20-281e. 297
(e) Any licensee of this state that offers or renders services or uses 298
their CPA title in another state shall be subject to disciplinary action in 299
this state for an act committed in another state for which the licensee 300
would be subject to discipline for an act committed in the other state. 301
Notwithstanding the provisions of section 20-280c, the board shall 302
investigate any complaint made by the board of accountancy of another 303
state against any such licensee. 304
[(f) In determining substantial equivalency pursuant to this section, 305
the board shall take into account the qualifications of such person 306
without regard to the sequence in which experience, education or 307
examination requirements were attained.] 308
This act shall take effect as follows and shall amend the following
sections:
Section 1 October 1, 2025 20-279b
Sec. 2 October 1, 2025 20-280(g)
Sec. 3 October 1, 2025 20-281c
Sec. 4 October 1, 2025 20-281n
GL Joint Favorable