Report - 2024 01 11 A31505 D263758 Bill Report 5887 Sbr Bfgt Ta 24
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- Congressional materials
- Document type
- Report
- Date
- 2024-01-11
- Case
- 2024 01 11 A31505 D263758 Bill Report 5887 Sbr Bfgt Ta 24
Summary
A Senate Bill Report on SB 5887, an act modifying the public accountancy act, as of January 9, 2024, prepared by non-partisan staff of the Senate Committee on Business, Financial Services, Gaming & Trade. The bill is sponsored by Senators Stanford and Dozier. The report describes current Washington CPA licensing requirements and states that the bill updates and consolidates terms in the Public Accountancy Act to align with the Uniform Accountancy Act, including defining "CPA firm" and "practice privilege". It replaces the statutory one-year experience requirement with experience requirements set by the Board of Accountancy through rule making, and adds dishonesty in obtaining a license and fraudulent acts while licensed as causes for revocation or nonrenewal. The report lists no appropriation, a fiscal note requested on January 5, 2024, and supporting testimony.
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“Report - 2024 01 11 A31505 D263758 Bill Report 5887 Sbr Bfgt Ta 24.”
Original at app.leg.wa.gov, dated 2024-01-11. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2024-01-11-2024-01-11-a31505-d263758-bill-report-5887-sbr-bfgt-ta-24/
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SENATE BILL REPORT
SB 5887
As of January 9, 2024
Title: An act relating to modifying the public accountancy act.
Brief Description: Modifying the public accountancy act.
Sponsors: Senators Stanford and Dozier.
Brief History:
Committee Activity: Business, Financial Services, Gaming & Trade: 1/09/24.
Brief Summary of Bill
• Updates and consolidates terms in the Public Accountancy Act.
• Removes statutory requirements regarding experience necessary for
certified public accountant (CPA) licensure.
• Requires the Board of Accountancy to establish experience requirements
for CPA licensure.
• Adds causes for potential license revocation or nonrenewal.
SENATE COMMITTEE ON BUSINESS, FINANCIAL SERVICES, GAMING & TRADE
Staff: Kellee Gunn (786-7429)
Background: The Board of Accountancy (Board) regulates the accounting profession and
administers a licensing program for individuals and firms that engage in the practice of
public accounting. The Public Accountancy Act (Act) governs the practice of accounting in
Washington.
The Board has the power to revoke, suspend, or refuse to renew or reinstate a license, or
impose certain fines or conditions on any applicant, licensee, or licensed firm for fraud,
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 5887
criminal acts, and violation of the Act.
Certified Public Accountant and Firm Licenses in Washington State. To become a licensed
Certified Public Accountant (CPA) in the state of Washington a person must:
• be of good character;
• meet educational standards established by rule through the Board;
• pass a CPA exam;
• have one year of experience using accounting or related skills while employed in
government industry, academia, or public practice, and have met the competency
requirements set by the Board; and
• have paid the appropriate fees established by the Board.
A CPA license is valid for three years. To maintain a CPA license, a licensee is subject to
continuing professional education (CPE) requirements and fees. A licensee must complete
120 CPE hours within three years to maintain their license.
Firms, corporations, sole proprietorships, partnerships, and limited liability companies
(LLCs) with an office in this state must hold a Washington CPA firm license if performing
or offering to perform attest or compilation services.
Substantial Equivalency. Substantial equivalency allows licensed CPAs to practice across
jurisdictions. Under the Uniform Accountancy Act (UAA), a CPA with a license in good
standing from a jurisdiction with licensing requirements equivalent to those outlined in the
UAA—a degree with 150 semester hours, minimum one year experience, and successful
completion of the Uniform CPA Examination—may be granted the ability to practice other
than the CPA’s principal place of business. Washington State's CPA licensure requirements
qualify as substantially equivalent under the UAA.
Summary of Bill: The Act is amended to include new and consolidated terms, restructured
sections, updates to align with the UAA, and additions to what is prohibited and qualifies
for license revocation or suspension under the Act.
Updated and Consolidated Terms. The term "substantially equivalent" is replaced with
"substantial equivalency."
The term "practice privilege" is defined to include those who are authorized to practice
public accounting in Washington State, of which those having substantial equivalency are
included.
Words referring to gender are replaced with gender neutral terms.
The term "CPA firm" is defined to include all firms, corporations, sole proprietorships,
partnerships, and LLCs performing or offering to perform attest or compilation services
currently required to hold a firm license in Washington State.
Senate Bill Report -2- SB 5887
Experience Requirement for Licensure. The current statutory requirement of one year of
experience for a CPA license is replaced with experience requirements determined through
rule making by the Board.
An individual whose principal place of business is not Washington State may practice as a
licensed CPA in the state if they meet requirements which have substantial equivalency to
those requirements set forth by the Board, rather than having at least 150 semester hours of
university or college education and achieving a passing grade on the Uniform CPA
Examination and possessing at least one year of experience.
Violations Resulting in Potential License Revocation. The following are added as causes
that could result in a CPA or CPA firm's license being revoked, suspended, or not renewed,
among other remedies provided to the Board:
• dishonesty in obtaining a license;
• performance of any fraudulent act while holding a license or privilege under the Act;
and
• making any false or misleading statement or certification in support of an application
for a license filed by another.
Other Changes. Intent sections and effective dates for previous revisions to the Act are
removed.
Appropriation: None.
Fiscal Note: Requested on January 5, 2024.
Creates Committee/Commission/Task Force that includes Legislative members: No.
Effective Date: Ninety days after adjournment of session in which bill is passed.
Staff Summary of Public Testimony: PRO: This bill cleans up and updates language,
aligns the state's Act more closely with the UAA. This bill updates terms and makes it
easier for firms to understand how to get a license by putting the requirements under one
term, "CPA firm". The Board does not license firms any differently regardless of how they
are organized. This simplifies. This removes the one-year requirement, and instead
establishes the requirement under Board rule. The Washington Society of Public
Accountants has worked with all interested parties in developing this legislation.
Persons Testifying: PRO: Senator Derek Stanford, Prime Sponsor; Michael Paquette,
Washington State BOA; Lisa Thatcher, Washington Society of Certified Public
Accountants.
Persons Signed In To Testify But Not Testifying: No one.
Senate Bill Report -3- SB 5887
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- Original
- app.leg.wa.gov