Washington Senate Bill Report HB 1920 (Feb. 12, 2024)

Summary

A Washington Senate Bill Report on HB 1920, as of February 12, 2024, prepared by staff of the Senate Committee on Business, Financial Services, Gaming & Trade. The bill, sponsored by Representatives Robertson, Reeves, Ryu and Graham, modifies the Public Accountancy Act and passed the House on 1/29/24, 96-0. The background section describes the Board of Accountancy, current CPA licensure requirements including one year of experience and 120 CPE hours within three years, and substantial equivalency under the Uniform Accountancy Act. The bill summary says it updates and consolidates terms, replaces the statutory experience requirement with requirements set by Board rule, and adds causes for license revocation such as dishonesty in obtaining a license. The report lists no appropriation and an effective date ninety days after adjournment.

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Full text

                            SENATE BILL REPORT
                                  HB 1920

                                     As of February 12, 2024

Title: An act relating to modifying the public accountancy act.

Brief Description: Modifying the public accountancy act.

Sponsors: Representatives Robertson, Reeves, Ryu and Graham.

Brief History: Passed House: 1/29/24, 96-0.
     Committee Activity:


                                     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-                                         HB 1920
     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-                                      HB 1920
     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: Available.

     Creates Committee/Commission/Task Force that includes Legislative members: No.

     Effective Date: Ninety days after adjournment of session in which bill is passed.




Senate Bill Report                            -3-                                        HB 1920


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