EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0427*
HOUSE BILL 427
C3 5lr2095
CF SB 148
By: Delegate Queen
Introduced and read first time: January 16, 2025
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
State Board of Public Accountancy – Emeritus Status 2
FOR the purpose of authorizing the State Board of Public Accountancy to place a licensee 3
on emeritus status under certain circumstances; requiring the Board to reinstate the 4
license of an individual who is on emeritus status under certain circumstances; and 5
generally relating to the State Board of Public Accountancy and emeritus status. 6
BY repealing and reenacting, with amendments, 7
Article – Business Occupations and Professions 8
Section 2–311(a), 2–314, 2–601, and 2–603 9
Annotated Code of Maryland 10
(2018 Replacement Volume and 2024 Supplement) 11
BY adding to 12
Article – Business Occupations and Professions 13
Section 2–313.1 14
Annotated Code of Maryland 15
(2018 Replacement Volume and 2024 Supplement) 16
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17
That the Laws of Maryland read as follows: 18
Article – Business Occupations and Professions 19
2–311. 20
(a) (1) THIS SUBSECTION DOES NOT APPLY TO A CERTI FIED PUBLIC 21
ACCOUNTANT WHO IS ON EMERITUS STATU S UNDER § 2–313.1 OF THIS SUBTITLE. 22
2 HOUSE BILL 427
(2) Unless a license is renewed for a 2–year term as provided in this 1
section, the license expires on the first December 31 that comes: 2
[(1)] (I) after the effective date of the license; and 3
[(2)] (II) in an even–numbered year. 4
2–313.1. 5
(A) THE BOARD MAY PLACE A LIC ENSEE ON EMERITUS ST ATUS, IF THE 6
LICENSEE SUBMITS TO THE BOARD AN APPLICATION FOR EMERITUS STATUS ON THE 7
FORM REQUIRED BY THE BOARD. 8
(B) THE BOARD SHALL PLACE A L ICENSEE ON EMERITUS STATUS IF T HE 9
INDIVIDUAL: 10
(1) HAS AN ACTIVE OR INA CTIVE LICENSE TO PRA CTICE CERTIFIED 11
PUBLIC ACCOUNTANCY U NDER THIS SUBTITLE ; 12
(2) IS NOT UNDER INVESTI GATION BY THE BOARD FOR A VIOLATION 13
OF THIS TITLE; 14
(3) IS NOT THE SUBJECT O F A PENDING DISCIPLINARY ACTION 15
RELATED TO THE PRACT ICE OF CERTIFIED PUB LIC ACCOUNTANCY IN T HE STATE OR 16
ANOTHER STATE ; 17
(4) (I) 1. HAS PRACTICED PUBLIC ACCOUNTANCY IN THE 18
STATE FOR AT LEAST 20 YEARS; AND 19
2. IS AT LEAST 60 YEARS OLD; OR 20
(II) HAS AT LEAST 40 YEARS OF EXPERIENCE AS A CERTIFIED 21
PUBLIC ACCOUNTANT ; AND 22
(5) ATTESTS THAT: 23
(I) THE INDIVIDUAL IS RE TIRED AND IS NO LONG ER ACTIVELY 24
PRACTICING PUBLIC AC COUNTANCY IN THE STATE; AND 25
(II) THE INDIVIDUAL WILL NOT PROVIDE CERTIFIE D PUBLIC 26
ACCOUNTANCY SERVICES UNLESS REIN STATED IN ACCORDANCE WITH § 2–314 OF 27
THIS SUBTITLE. 28
HOUSE BILL 427 3
(C) THE BOARD SHALL REVIEW AN APPLICATION SUBMITTE D UNDER THIS 1
SECTION WITHIN 60 DAYS OF RECEIPT OF T HE APPLICATION . 2
(D) IF THE BOARD APPROVES AN APP LICATION FOR EMERITU S STATUS 3
UNDER THIS SECTION , THE BOARD SHALL SEND THE LICENSEE: 4
(1) WRITTEN NOTICE OF TH E APPROVAL; AND 5
(2) A CERTIFICATE OF EME RITUS STATUS. 6
(E) A LICENSEE ON EMERITUS STATUS IS EXEMPT FRO M: 7
(1) THE CONTINUING EDUCA TION REQUIREMENTS UN DER § 2–312 OF 8
THIS SUBTITLE; AND 9
(2) THE REINSTATEMENT FE E UNDER § 2–341 OF THIS SUBTITLE. 10
2–314. 11
In accordance with its regulations, the Board may reinstate the license of an 12
individual who has failed to renew the license for any reason OR IS ON EMERITUS ST ATUS 13
UNDER § 2–313.1 OF THIS SUBTITLE if the individual: 14
(1) otherwise is entitled to be licensed; 15
(2) EXCEPT AS PROVIDED U NDER § 2–313.1 OF THIS SUBTITLE , 16
complies with each continuing education requirement that the Board sets for this purpose; 17
and 18
(3) EXCEPT AS PROVIDED UNDE R § 2–313.1 OF THIS SUBTITLE, pays to 19
the Board a reinstatement fee set by the Board. 20
2–601. 21
Except as otherwise provided in this title[,]: 22
(1) a person may not practice, attempt to practice, or offer to practice 23
certified public accountancy in the State unless licensed by the Board or qualified for a 24
practice privilege under § 2–321 of this title; AND 25
(2) A LICENSEE ON EMERIT US STATUS UNDER § 2–313.1 OF THIS 26
TITLE MAY NOT: 27
(I) PRACTICE, ATTEMPT TO PRACTICE , OR OFFER TO PRACTICE 28
CERTIFIED PUBLIC ACC OUNTANCY IN THE STATE; 29 4 HOUSE BILL 427
(II) SIGN OR CERTIFY FINA NCIAL STATEMENTS , TAX RETURNS , 1
OR AUDIT REPORTS ; OR 2
(III) PROVIDE ATTESTATION SERVICES. 3
2–603. 4
(a) Subject to subsection (b) of this section and unless authorized under this title 5
to practice certified public accountancy, a person may not represent to the public, by use of 6
a title, including “licensed certified public accountant”, “certified public accountant”, “public 7
accountant”, or “auditor”, by use of the abbreviation “CPA”, by description of services, 8
methods, or procedures, or otherwise, that the person is authorized to practice certified 9
public accountancy in the State. 10
(b) Subsection (a) of this section does not prohibit: 11
(1) the description of a principal, officer, or employee of an organization by 12
the position, title, or office that the individual holds in the organization; [or] 13
(2) THE DESCRIPTION OF A LICENSEE WHO IS ON E MERITUS STATUS 14
UNDER § 2–313.1 OF THIS TITLE , PROVIDED THAT THE LI CENSEE DOES NOT 15
REPRESENT TO THE PUBL IC THAT THE LICENSEE IS AUTHORIZED TO PRA CTICE 16
CERTIFIED PUBLIC ACC OUNTANCY IN THE STATE; OR 17
[(2)] (3) a partnership, limited liability company, or corporation that 18
holds a permit or is exempt from the permit requirement under § 2–401 of this title from 19
using, in connection with the name of the partnership, limited liability company, or 20
corporation, any of the terms or the abbreviation to which subsection (a) of this section 21
refers. 22
(c) (1) (I) [The] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 23
PARAGRAPH , THE display, distribution, or other use by a person of the person’s name, in 24
conjunction with any of the following list of titles or abbreviations in a card, sign, 25
advertisement, directory listing, or other instrument or device, is, in any proceeding under 26
this title, prima facie evidence that the person represents to the public that the person is 27
authorized to practice certified public accountancy: 28
[(i)] 1. “licensed certified public accountant”; 29
[(ii)] 2. “certified public accountant”; 30
[(iii)] 3. “public accountant”; 31
[(iv)] 4. “auditor”; or 32 HOUSE BILL 427 5
[(v)] 5. an abbreviation of any of these titles. 1
(II) A LICENSEE WHO IS ON E MERITUS STATUS UNDER § 2–313.1 2
OF THIS TITLE MAY US E THE WORDS “CERTIFIED PUBLIC ACC OUNTANT EMERITUS ” 3
OR THE ABBREVIATION “CPA EMERITUS” TO DESCRIBE THE OCCU PATION OF THE 4
INDIVIDUAL, PROVIDED THAT THE LI CENSEE DOES NO T REPRESENT TO THE P UBLIC 5
THAT THE LICENSEE IS AUTHORIZED TO PRACTI CE CERTIFIED PUBLIC 6
ACCOUNTANCY IN THE STATE. 7
(2) In a proceeding under this title, evidence of a single representation 8
described in paragraph (1) of this subsection is, without evidence of a general course of 9
conduct, adequate to justify a finding that a person has represented to the public that the 10
person is authorized to practice certified public accountancy in the State. 11
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 12
1, 2025. 13