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Senate Bill Report SB 5519

Summary

This Senate Bill Report on SB 5519, as of January 6, 2022, concerns replacing an inactive certificate status with an inactive license designation, with Senators Dozier and Mullet as sponsors. The Brief Summary says the bill creates an inactive license designation that reduces the continuing professional education credits needed for certified public accountants (CPAs) who want to maintain their license while not actively practicing. The report states that the terms Certificate and Certificate Holder sunset by June 30, 2024, and that individuals with certificates current and valid on June 30, 2024 are automatically converted to a licensee in an inactive status. It also says the Board has not issued a certificate since 2003, and that the bill defines “substantial equivalency” and “substantially equivalent.”

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Issuer
Congressional materials
Document type
Report
Date
2022-01-11
Case
2022 01 11 A29378 D236804 Bill Report 5519 Sba Bfst 22

Cite this document

“Senate Bill Report SB 5519.” Original at app.leg.wa.gov, dated 2022-01-11. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2022-01-11-2022-01-11-a29378-d236804-bill-report-5519-sba-bfst-22/, SHA-256 1a46749af6d7f1bc5c23320d5fd3c9de284136c27323d0236555d3a722d5b8b3.

Full text

                             SENATE BILL REPORT
                                   SB 5519

                                       As of January 6, 2022

Title: An act relating to replacing an inactive certificate status with an inactive license
     designation.

Brief Description: Replacing an inactive certificate status with an inactive license designation.

Sponsors: Senators Dozier and Mullet.

Brief History:
     Committee Activity: Business, Financial Services & Trade: 1/11/22.


                                      Brief Summary of Bill
           • Creates an inactive license designation that reduces the number of
             continuing professional education credits needed for certified public
             accountants (CPAs) that want to maintain their license while not actively
             practicing as a CPA.


SENATE COMMITTEE ON BUSINESS, FINANCIAL SERVICES & TRADE

     Staff: Clint McCarthy (786-7319)

     Background: The Public Accountancy Act (Act) governs the practice of accounting in
     Washington. Under the Act, both accountants and accounting firms must be licensed to
     hold themselves out as certified public accountants (CPAs). The Board of Accountancy
     (Board) issues licenses, adopts rules, conducts investigations, administers an examination,
     and otherwise implements the Act.

     CPAs and CPA firms perform various services that, depending on the service, must meet
     certain professional standards. The Board conducts a quality assurance review (QAR)
     program to review the work of licensees and out-of-state CPAs with practice privileges in
     Washington. Out-of-state CPAs and CPA firms licensed in their home state may perform



     This analysis was prepared by non-partisan legislative staff for the use of legislative
     members in their deliberations. This analysis is not part of the legislation nor does it
     constitute a statement of legislative intent.

Senate Bill Report                               -1-                                            SB 5519
     attest and compilation services for people and businesses in Washington, subject to certain
     requirements, such as consenting to jurisdiction in Washington.

     Licensees. The Board issues three year licenses to individuals contingent on the individual
     meeting certain standards adopted by the Board concerning education, experience in the
     field of accounting, and whether certain competencies have been met through their
     experience as determined by a verifying CPA. In order to maintain a license at renewal, a
     CPA must meets an 120 hour continuing professional education (CPE) requirement.

     Certificate Holders. A certificate holder holds a certificate as a CPA who has not become a
     licensee, has maintained CPE requirements, and who does not practice public accounting.
     While statute permits the Board to grant certificates, the Board has not issued a certificate
     since 2003.

     Substantially Equivalent. "Substantially Equivalent" is a term used throughout the Act, and
     is used in reference to determining whether an individual certified as a public accountant by
     another jurisdiction has comparable training and experience relative to the requirements
     maintained by the Board in the state of Washington.

     Summary of Bill: Sunsets the Terms Certificate and Certificate Holder by June 30, 2024.
     A process is created to sunset the term certificate by June 30, 2024. Until June 30, 2024, a
     certificate is defined as an alternative license type that indicates the certificate holder has
     passed the CPA examination, but has not had their experience verified by a verifying CPA.
     Beginning July 1, 2024, a Board issued certificate will no longer be recognized as a form of
     license. Individuals with certificates that are current and still valid on June 30, 2024, will
     be automatically converted to a licensee in an inactive status. If the individual wants to
     activate their license, they must apply to the Board and meet various requirements of the
     Board.

     Creates an Inactive License Designation for Licensed Certified Public Accountants.
     Licensees that have their license in good standing, may request to have their license placed
     on inactive status. Once in inactive status, the licensee is prohibited from practicing as a
     CPA. They must continue to pay the licensing fee and comply with CPE requirements to
     maintain their inactive status. An inactive licensee must complete a Board approved ethics
     course for CPE during a three- year period to maintain an inactive license.

     Defines the Terms Substantial Equivalency and Substantially Equivalent. The terms
     "substantial equivalency" and "substantially equivalent" are defined to mean the education,
     examination, and experience requirements contained in statutes and administrative rules in
     another jurisdiction are comparable to or exceed the requirements of the Board.

     Appropriation: None.

     Fiscal Note: Not requested.


Senate Bill Report                              -2-                                         SB 5519
     Creates Committee/Commission/Task Force that includes Legislative members: No.

     Effective Date: The bill contains several effective dates. Please refer to the bill.




Senate Bill Report                              -3-                                         SB 5519

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