Connecticut 2025 Regular Session

Connecticut House Bill HB07020 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
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3		-	LCO 5159 1 of 11
	3	+	LCO No. 5159 1 of 12
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5	5		General Assembly Raised Bill No. 7020
6	6		January Session, 2025
7	7		LCO No. 5159
8	8
9	9
10	10		Referred to Committee on GENERAL LAW
11	11
12	12
13	13		Introduced by:
14	14		(GL)
	15	+
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17	18
18	19		AN ACT CONCERNING CERTIFIED PUBLIC ACCOUNTANTS.
19	20		Be it enacted by the Senate and House of Representatives in General
20	21		Assembly convened:
21	22
22	23		Section 1. Section 20-279b of the general statutes is repealed and the 1
23	24		following is substituted in lieu thereof (Effective October 1, 2025): 2
24	25		As used in this section and sections 20-280 to 20-281n, inclusive, as 3
25	26		amended by this act: 4
26	27		(1) "Board" means the State Board of Accountancy established by 5
27	28		section 20-280, as amended by this act; 6
28	29		(2) "Certificate" means a "certified public accountant" certificate 7
29	30		issued either prior to October 1, 1992, or pursuant to section 20-281c, as 8
30	31		amended by this act, or a "certified public accountant" certificate issued 9
31	32		after examination pursuant to the laws of any other state; 10
32	33		(3) "Firm" means any person, proprietorship, partnership, 11
33	34		corporation, limited liability company or association and any other legal 12
34		-	entity which practices public accountancy; 13 Raised Bill No. 7020
	35	+	entity which practices public accountancy; 13
	36	+	Raised Bill No. 7020
35	37
36	38
37		-	LCO 5159 2 of 11
	39	+
	40	+	LCO No. 5159 2 of 12
38	41
39	42		(4) "License" means a public accountancy license issued pursuant to 14
40	43		section 20-281b or 20-281d; 15
41	44		(5) "Licensee" means the holder of a certificate issued pursuant to 16
42	45		section 20-281c, as amended by this act, the holder of a license issued 17
43	46		pursuant to section 20-281b or 20-281d or a holder of a permit to practice 18
44	47		public accountancy issued pursuant to sections 20-281b and 20-281e; 19
45	48		(6) "Permit" means a permit to practice public accountancy issued to 20
46	49		a firm pursuant to section 20-281e; 21
47	50		(7) "Practicing public accountancy" means performing for the public 22
48	51		or offering to perform for the public for a fee by a person or firm holding 23
49	52		himself, herself or itself out to the public as a licensee one or more kinds 24
50	53		of services involving the use of accounting or auditing skills, including, 25
51	54		but not limited to, the issuance of reports or of one or more kinds of 26
52	55		management advisory, financial advisory or consulting services, or the 27
53	56		preparation of tax returns or the furnishing of advice on tax matters; 28
54	57		(8) "Quality review" means any study, appraisal or review of one or 29
55	58		more aspects of the professional work of a person or firm which 30
56	59		practices public accountancy by a person or persons who holds or hold 31
57	60		licenses under section 20-281b or 20-281d or their equivalent under the 32
58	61		laws of any other state and who are not affiliated with the person or firm 33
59	62		being reviewed; 34
60	63		(9) "Registration" means the process by which the holder of a 35
61	64		certificate may register his or her certificate annually and pay a fee of 36
62	65		twenty dollars in lieu of an annual renewal of a license and be entitled 37
63	66		to use the abbreviation "CPA" and the title "certified public accountant" 38
64	67		under conditions and in the manner prescribed by the board by 39
65	68		regulation; 40
66	69		(10) "Profession" means the profession of public accountancy; 41
67	70		(11) "Report" means, in reference to any attest or compilation service, 42
68		-	~~any opinion, writing or other form of language that (A) expresses or 43~~ Raised Bill No. 7020
	71	+	Raised Bill No. 7020
69	72
70	73
71		-	LCO 5159 3 of 11
72	74
	75	+	LCO No. 5159 3 of 12
	76	+
	77	+	any opinion, writing or other form of language that (A) expresses or 43
73	78		implies assurance as to the reliability of the attested information or 44
74	79		compiled financial statements, and (B) contains or is accompanied by a 45
75	80		statement that expresses or implies that the person or firm issuing such 46
76	81		opinion, writing or other language has special knowledge or 47
77	82		competence in accounting or auditing, which expression or implication 48
78	83		arises from, among other things, the use of names or titles by the issuer 49
79	84		indicating that the person or firm is an accountant or auditor or from the 50
80	85		language of the report itself. "Report" includes any form of language that 51
81	86		disclaims an opinion when such form of language is conventionally 52
82	87		understood to imply any positive assurance as to the reliability of the 53
83	88		attested information or compiled financial statements referred to or 54
84	89		special competence on the part of the person or firm issuing such 55
85	90		language, including any other form of language that is conventionally 56
86	91		understood to imply such assurance or special knowledge or 57
87	92		competence; 58
88	93		(12) "AICPA" means the American Institute of Certified Public 59
89	94		Accountants; 60
90	95		(13) "Attest" means the provision of any of the following services: 61
91	96		(A) Any audit or other engagement to be performed in accordance 62
92	97		with the Statements on Auditing Standards (SAS); 63
93	98		(B) Any review of a financial statement to be performed in accordance 64
94	99		with the Statements on Standards for Accounting and Review Services 65
95	100		(SSARS); 66
96	101		(C) Any examination of prospective financial information to be 67
97	102		performed in accordance with the Statements on Standards for 68
98	103		Attestation Engagements (SSAE); 69
99	104		(D) Any engagement to be performed in accordance with the 70
100	105		Auditing Standards of the PCAOB; and 71
101		-	(E) Any examination, review or agreed upon procedures engagement 72
102		-	to be performed in accordance with the Statements on Standards for 73 Raised Bill No. 7020
	106	+	Raised Bill No. 7020
103	107
104	108
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	111	+
	112	+	(E) Any examination, review or agreed upon procedures engagement 72
	113	+	to be performed in accordance with the Statements on Standards for 73
107	114		Attestation Engagements (SSAE), other than an examination as 74
108	115		described in subparagraph (C) of this subdivision; 75
109	116		(14) "Compilation" means the provision of a service to be performed 76
110	117		in accordance with Statements on Standards for Accounting and Review 77
111	118		Services (SSARS) that is presented in the form of financial statements 78
112	119		that is the representation of management without undertaking to 79
113	120		express any assurance on the statements; 80
114	121		(15) "Home office" means the location specified by the client as the 81
115	122		address to which a service described in section 20-281n, as amended by 82
116	123		this act, is directed; 83
117	124		[(16) "NASBA" means the National Association of State Boards of 84
118	125		Accountancy;] 85
119	126		[(17)] (16) "PCAOB" means the Public Company Accounting 86
120	127		Oversight Board; 87
121	128		[(18)] (17) "Practice privilege" means the privilege for a person or firm 88
122	129		to practice public accountancy described in, and subject to the 89
123	130		conditions contained in, sections 20-281e and 20-281n, as amended by 90
124	131		this act; and 91
125	132		[(19)] (18) "Principal place of business" means the office location 92
126	133		designated by an individual or firm for purposes of sections 20-281e and 93
127	134		20-281n, as amended by this act. [;] 94
128	135		[(20) "Substantial equivalency" is a determination by the board of 95
129	136		accountancy or its designee that the education, examination and 96
130	137		experience requirements contained in the statutes and administrative 97
131	138		rules of another jurisdiction are comparable to, or exceed, the education, 98
132	139		examination and experience requirements contained in the Uniform 99
133	140		Accountancy Act or that an individual certified public accountant's 100
	141	+	Raised Bill No. 7020
	142	+
	143	+
	144	+
	145	+	LCO No. 5159 5 of 12
	146	+
134	147		education, examination and experience qualifications are comparable 101
135	148		to, or exceed, the education, examination and experience requirements 102
136		-	contained in the Uniform Accountancy Act.] 103 Raised Bill No. 7020
137		-
138		-
139		-	LCO 5159 5 of 11
140		-
	149	+	contained in the Uniform Accountancy Act.] 103
141	150		Sec. 2. Subsection (g) of section 20-280 of the general statutes is 104
142	151		repealed and the following is substituted in lieu thereof (Effective October 105
143	152		1, 2025): 106
144	153		(g) The board may adopt regulations, in accordance with chapter 54, 107
145	154		governing its administration and enforcement of sections 20-279b to 20-108
146	155		281m, inclusive, as amended by this act, and the conduct of licensees 109
147	156		and registrants, including, but not limited to: 110
148	157		(1) Regulations governing the board's meetings and the conduct of its 111
149	158		business; 112
150	159		(2) Regulations concerning procedures governing the conduct of 113
151	160		investigations and hearings by the board; 114
152	161		(3) Regulations [specifying] implementing the [educational 115
153	162		qualifications required] education requirements established for the 116
154	163		issuance of certificates under section 20-281c, as amended by this act, 117
155	164		implementing the experience [required] requirements established for 118
156	165		initial issuance of certificates under section 20-281c, as amended by this 119
157	166		act, and specifying the continuing professional education required for 120
158	167		renewal of licenses under subsection (e) of section 20-281d; 121
159	168		(4) Regulations concerning professional conduct directed to 122
160	169		controlling the quality and probity of the practice of public accountancy 123
161	170		by licensees, and dealing among other things with independence, 124
162	171		integrity, objectivity, competence, technical standards, responsibilities 125
163	172		to the public and responsibilities to clients; 126
164	173		(5) Regulations specifying actions and circumstances that shall be 127
165	174		deemed to constitute holding oneself out as a licensee in connection 128
166	175		with the practice of public accountancy; 129
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	179	+
	180	+	LCO No. 5159 6 of 12
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167	182		(6) Regulations governing the manner and circumstances of use by 130
168	183		holders of certificates who do not also hold licenses under sections 20-131
169	184		279b to 20-281m, inclusive, as amended by this act, of the titles "certified 132
170		-	public accountant" and "CPA"; 133 Raised Bill No. 7020
171		-
172		-
173		-	LCO 5159 6 of 11
174		-
	185	+	public accountant" and "CPA"; 133
175	186		(7) Regulations regarding quality reviews that may be required to be 134
176	187		performed under the provisions of sections 20-279b to 20-281m, 135
177	188		inclusive, as amended by this act; 136
178	189		(8) Regulations implementing the provisions of section 20-281l, 137
179	190		including, but not limited to, specifying the terms of any disclosure 138
180	191		required by subsection (d) of said section 20-281l, the manner in which 139
181	192		such disclosure is made and any other requirements the board imposes 140
182	193		with regard to such disclosure. Such regulations shall require that any 141
183	194		disclosure: (A) Be in writing and signed by the recipient of the product 142
184	195		or service; (B) be clear and conspicuous; (C) state the amount of the 143
185	196		commission or the basis on which the commission will be calculated; (D) 144
186	197		identify the source of the payment of the commission and the 145
187	198		relationship between such source and the person receiving payment; 146
188	199		and (E) be presented to the client at or prior to the time the 147
189	200		recommendation of the product or service is made; 148
190	201		(9) Regulations establishing the due date for any fee charged 149
191	202		pursuant to sections 20-281c, as amended by this act, 20-281d and 20-150
192	203		281e. Such regulations may establish the amount and due date of a late 151
193	204		fee charged for the failure to remit payment of any fee charged pursuant 152
194	205		to sections 20-281c, as amended by this act, 20-281d and 20-281e; and 153
195	206		(10) Such other regulations as the board may deem necessary or 154
196	207		appropriate for implementing the provisions and the purposes of 155
197	208		sections 20-279b to 20-281m, inclusive, as amended by this act. 156
198	209		Sec. 3. Section 20-281c of the general statutes is repealed and the 157
199	210		following is substituted in lieu thereof (Effective October 1, 2025): 158
200	211		(a) The board shall grant the certificate of "certified public 159
	212	+	Raised Bill No. 7020
	213	+
	214	+
	215	+
	216	+	LCO No. 5159 7 of 12
	217	+
201	218		accountant" to any person who meets the good character, education, 160
202	219		experience and examination requirements of subsections (b) to [(e)] (f), 161
203	220		inclusive, of this section and upon the payment of a fee of one hundred 162
204	221		fifty dollars. 163
205		-	(b) Good character for purposes of this section means lack of a history 164 Raised Bill No. 7020
206		-
207		-
208		-	LCO 5159 7 of 11
209		-
	222	+	(b) Good character for purposes of this section means lack of a history 164
210	223		of dishonest or felonious acts. The board may refuse to grant a certificate 165
211	224		on the grounds of failure to satisfy this requirement only if there is a 166
212	225		substantial connection between the lack of good character of the 167
213	226		applicant and the professional responsibilities of a licensee and if the 168
214	227		finding by the board of lack of good character is supported by clear and 169
215	228		convincing evidence, and when based upon the prior conviction of a 170
216	229		crime, is in accordance with the provisions of section 46a-80. When an 171
217	230		applicant is found to be unqualified for a certificate because of a finding 172
218	231		of lack of good character, the board shall furnish the applicant a 173
219	232		statement containing the findings of the board and a complete record of 174
220	233		the evidence upon which the determination was based. 175
221	234		(c) An applicant may apply to take the examination if such person, at 176
222	235		the time of the examination, has completed not less than one hundred 177
223	236		twenty semester hours of education, as determined by the board by 178
224	237		regulation to be appropriate. The [educational] education requirements 179
225	238		for a certificate shall be [prescribed in regulations to be adopted by the 180
226	239		board] as follows: 181
227	240		(1) [Until December 31, 1999, a] A baccalaureate degree or its 182
228	241		equivalent conferred by a college or university acceptable to the board, 183
229	242		with an accounting concentration or equivalent as determined by the 184
230	243		board by regulation to be appropriate; 185
231	244		(2) [After January 1, 2000, at] At least one hundred fifty semester 186
232	245		hours of college education including a baccalaureate or higher degree 187
233	246		conferred by a college or university acceptable to the board. The total 188
234	247		educational program shall include an accounting concentration or 189
235	248		equivalent, as determined by the board by regulation to be appropriate; 190
	249	+	Raised Bill No. 7020
	250	+
	251	+
	252	+
	253	+	LCO No. 5159 8 of 12
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236	255		or 191
237	256		(3) A master's degree or its equivalent conferred by a college or 192
238	257		university acceptable to the board, with an accounting concentration or 193
239	258		equivalent as determined by the board by regulation to be appropriate. 194
240	259		(d) The board may charge each applicant a fee, in an amount 195
241		-	prescribed by the board by regulation, for each section of the 196 Raised Bill No. 7020
242		-
243		-
244		-	LCO 5159 8 of 11
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	260	+	prescribed by the board by regulation, for each section of the 196
246	261		examination or reexamination taken by the applicant, or the board may 197
247	262		authorize a third party administering the examination to charge each 198
248	263		applicant a fee for each section of the examination or reexamination 199
249	264		taken by the applicant. 200
250	265		(e) The board shall allow an applicant who applies to take the 201
251	266		examination on or after October 1, 2023, to receive credit for each section 202
252	267		of the examination that such applicant passes in any sitting for such 203
253	268		examination, provided such applicant passes all sections of the 204
254	269		examination within a thirty-month period. The board may, in its 205
255	270		discretion, extend the thirty-month period for reasons related to health, 206
256	271		military service or other individual hardship. 207
257	272		(f) The experience requirement for a certificate shall be [as prescribed 208
258	273		by the board by regulation] as follows: 209
259	274		(1) Two years if the applicant is applying for a certificate based on the 210
260	275		education requirement established in subdivision (1) of subsection (c) of 211
261	276		this section; or 212
262	277		(2) One year if the applicant is applying for a certificate based on the 213
263	278		education requirement established in subdivision (2) or (3) of subsection 214
264	279		(c) of this section. 215
265	280		(g) The holder of a certificate may register his or her certificate 216
266	281		annually and pay a fee of forty dollars in lieu of an annual renewal of a 217
267	282		license and such registration shall entitle the registrant to use the 218
268	283		abbreviation "CPA" and the title "certified public accountant" under 219
	284	+	Raised Bill No. 7020
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	286	+
	287	+
	288	+	LCO No. 5159 9 of 12
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269	290		conditions and in the manner prescribed by the board by regulation. 220
270	291		Sec. 4. Section 20-281n of the general statutes is repealed and the 221
271	292		following is substituted in lieu thereof (Effective October 1, 2025): 222
272	293		(a) (1) [Any] Except as provided in subdivision (2) of this subsection, 223
273	294		any individual whose principal place of business is not in this state [shall 224
274	295		be presumed to have qualifications substantially equivalent to this 225
275		-	state's requirements and] shall qualify for a practice privilege and have 226 Raised Bill No. 7020
276		-
277		-
278		-	LCO 5159 9 of 11
279		-
	296	+	state's requirements and] shall qualify for a practice privilege and have 226
280	297		all the privileges of licensees of this state without the need to obtain a 227
281	298		license pursuant to section 20-281d if [:] 228
282	299		[(1) Such] such individual holds a valid license as a Certified Public 229
283	300		Accountant from any state [which the NASBA National Qualification 230
284	301		Appraisal Service has verified to be in substantial equivalence with the 231
285	302		CPA licensure requirements of the AICPA/NASBA Uniform 232
286	303		Accountancy Act; or 233
287	304		(2) Such individual holds a valid license as a Certified Public 234
288	305		Accountant from any state which the NASBA National Qualification 235
289	306		Appraisal Service has not verified to be in substantial equivalence with 236
290	307		the CPA licensure requirements of the AICPA/NASBA Uniform 237
291	308		Accountancy Act and the individual obtains from the NASBA National 238
292	309		Qualification Appraisal Service verification that such individual's CPA 239
293	310		qualifications are substantially equivalent to the CPA licensure 240
294	311		requirements of the AICPA/NASBA Uniform Accountancy Act. Any 241
295	312		individual who passed the Uniform CPA Examination and holds a valid 242
296	313		license issued by any other state prior to January 1, 2012, may be exempt 243
297	314		from the education requirement in the Uniform Accountancy Act for 244
298	315		purposes of this subdivision] and meets the good character, education, 245
299	316		experience and examination requirements of subsections (b) to (f), 246
300	317		inclusive, of section 20-281c, as amended by this act, and any regulations 247
301	318		adopted by the board pursuant to subdivision (3) of subsection (g) of 248
302	319		section 20-280, as amended by this act. 249
303	320		(2) The board may decline to allow the licensees of another state to 250
	321	+	Raised Bill No. 7020
	322	+
	323	+
	324	+
	325	+	LCO No. 5159 10 of 12
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304	327		exercise the practice privilege afforded under this section or have all of 251
305	328		the privileges of licensees of this state without the need to obtain a 252
306	329		license pursuant to section 20-281d if the board determines, in the 253
307	330		board's discretion, that (A) such other state imposes good character, 254
308	331		education, experience or examination requirements that are less 255
309	332		stringent than the good character, education, experience or examination 256
310	333		requirements of subsections (b) to (f), inclusive, of section 20-281c, as 257
311	334		amended by this act, and any regulations adopted by the board 258
312		-	pursuant to subdivision (3) of subsection (g) of section 20-280, as 259 Raised Bill No. 7020
313		-
314		-
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316		-
	335	+	pursuant to subdivision (3) of subsection (g) of section 20-280, as 259
317	336		amended by this act, and (B) the good character, education, experience 260
318	337		or examination requirements imposed by such other state are 261
319	338		insufficient to protect consumers in this state. 262
320	339		(b) Notwithstanding any provision of the general statutes, any 263
321	340		individual who qualifies for [a practice privilege] the privileges afforded 264
322	341		under this section may offer or render professional services, whether in 265
323	342		person or by mail, telephone or electronic means, based on [a practice 266
324	343		privilege] such privileges, and no notice, fee or other submission shall 267
325	344		be required of any such individual. Such individual shall be subject to 268
326	345		the requirements in subsection (c) of this section. 269
327	346		(c) Any individual licensee of another state exercising the [privilege] 270
328	347		privileges afforded under this section and the firm that employs such 271
329	348		licensee shall consent, as a condition of the grant of such [privilege] 272
330	349		privileges: 273
331	350		(1) To the personal and subject matter jurisdiction and disciplinary 274
332	351		authority of the board; 275
333	352		(2) To comply with any applicable provision of state law and the 276
334	353		board's rules; 277
335	354		(3) That in the event the license from the state of such individual's 278
336	355		principal place of business is no longer valid, such individual shall cease 279
337	356		offering or rendering professional services in this state individually and 280
338	357		on behalf of a firm; and 281
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	359	+
	360	+
	361	+
	362	+	LCO No. 5159 11 of 12
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339	364		(4) To the appointment of the state board that issued such license as 282
340	365		the agent upon whom process may be served in any action or 283
341	366		proceeding by the board against such licensee. 284
342	367		(d) Any individual who qualifies for [practice] the privileges afforded 285
343	368		under this section who, for any entity with its home office in this state, 286
344	369		performs any of the following services: (1) Any financial statement audit 287
345	370		or other engagement to be performed in accordance with Statements on 288
346		-	Auditing Standards; (2) any review of a financial statement to be 289 Raised Bill No. 7020
347		-
348		-
349		-	LCO 5159 11 of 11
350		-
	371	+	Auditing Standards; (2) any review of a financial statement to be 289
351	372		performed in accordance with the Statements on Standards for 290
352	373		Accounting and Review Services; (3) any examination of prospective 291
353	374		financial information, review or agreed upon procedures engagement 292
354	375		to be performed in accordance with Statements on Standards for 293
355	376		Attestation Engagements; or (4) any engagement to be performed in 294
356	377		accordance with PCAOB Auditing Standards, may only provide such 295
357	378		services through a firm that has obtained a permit issued under section 296
358	379		20-281e. 297
359	380		(e) Any licensee of this state that offers or renders services or uses 298
360	381		their CPA title in another state shall be subject to disciplinary action in 299
361	382		this state for an act committed in another state for which the licensee 300
362	383		would be subject to discipline for an act committed in the other state. 301
363	384		Notwithstanding the provisions of section 20-280c, the board shall 302
364	385		investigate any complaint made by the board of accountancy of another 303
365	386		state against any such licensee. 304
366	387		[(f) In determining substantial equivalency pursuant to this section, 305
367	388		the board shall take into account the qualifications of such person 306
368	389		without regard to the sequence in which experience, education or 307
369	390		examination requirements were attained.] 308
370	391		This act shall take effect as follows and shall amend the following
371	392		sections:
372	393
373	394		Section 1 October 1, 2025 20-279b
374	395		Sec. 2 October 1, 2025 20-280(g)
	396	+	Raised Bill No. 7020
	397	+
	398	+
	399	+
	400	+	LCO No. 5159 12 of 12
	401	+
375	402		Sec. 3 October 1, 2025 20-281c
376	403		Sec. 4 October 1, 2025 20-281n
377	404
378		-	GL Joint Favorable
	405	+	Statement of Purpose:
	406	+	To modify (1) the education and experience requirements imposed for
	407	+	certification as a certified public accountant in this state, and (2) the
	408	+	requirements imposed for an individual licensed as a certified public
	409	+	accountant in another state to exercise the privilege to practice as a
	410	+	certified public accountant in this state.
	411	+
	412	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	413	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	414	+	underlined.]
379	415