SB 719 — An Act amending the act of May 26, 1947 (P.L.318, No.140), known as the CPA Law, further providing for definitions, for general powers of the board, for examination and for requirements for issuance of certificate; repealing provisions relating to practice in this Commonwealth by individuals under substantial equivalency; further providing for practice outside this Commonwealth under substantial equivalency and for practice by firms and unlicensed entities under substantial equivalency; providing for practice in this Commonwealth by individuals under automatic mobility; and further providing for licenses to practice, for licensing of firms, for grounds for discipline, for reinstatement and for unlawful acts.

PRIOR PRINTER'S NO.

750 PRINTER'STHE NO.GENERAL ASSEMBLY OF PENNSYLVANIA SENATE BILL Session of No.

862719 THE2025 GENERALINTCOSTA, ASSEMBLYBAKER, OFKIM, PENNSYLVANIAFARRY, SENATEMILLER BILLAND SessionROTHMAN, MAY 6, 2025A, REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE, MAY 6, 2025 AN ACT Amending the act of No.May 26, 1947 (P.L.318, No.140), entitled "An act relating to the practice of public accounting;

719 2025 INTCOSTA, BAKER, KIM, FARRY, MILLER AND ROTHMAN, MAY 6, 2025A, SENATOR STEFANO, CONSUMER PROTECTION AND PROFESSIONAL LICENSURE, AS AMENDED, JUNE 3, 2025 AN ACT Amending the act of May 26, 1947 (P.L.318, No.140), entitled "An act relating to the practice of public accounting;

* * * (v) revoke, suspend or limit the right of a person to 20250SB0719PN086220250SB0719PN0750 - 2 - practice under section [5.2 or] 5.4 or 5.5 of this act;

The applicant shall receive credit for each part of the examination the applicant passed if the applicant passes all parts of the examination within a ROLLING thirty-month period beginning on the date the applicant <-- passes one part of the examination.

The board may extend the <--thirty- thirty-monthmonth time frame if the applicant proves that there are circumstances beyond the applicant's control that made the applicant not pass all parts of the examination within the time frame.

IF THE APPLICANT DOES NOT PASS ALL PARTS WITHIN THE <-- THIRTY-MONTH PERIOD, CREDIT FOR THE EARLIEST PART OF THE EXAMINATION PASSED SHALL EXPIRE, AND A NEW ROLLING THIRTY-MONTH PERIOD SHALL BEGIN ON THE DATE THE NEXT PASSING SCORE IS RELEASED.

THIS CYCLE OF ROLLING THIRTY-MONTH PERIODS AND CREDIT EXPIRATIONS SHALL CONTINUE UNTIL ALL PARTS ARE PASSED WITHIN A SINGLE THIRTY-MONTH PERIOD.

THE BOARD MAY EXTEND THE THIRTY- 20250SB0719PN0862 - 3 - MONTH PERIOD OR THE TERM OF AN APPLICANT'S CONDITIONAL EXAMINATION CREDITS IF THE APPLICANT DEMONSTRATES THAT THE FAILURE TO PASS OR THE EXPIRATION OF CREDITS WAS DUE TO CIRCUMSTANCES BEYOND THE APPLICANT'S CONTROL.

Requirements for Issuance of Certificate.--* * * 20250SB0719PN0750 - 3 - (b) Except as provided under subsection (b.1), before an individual may take the examination, the board shall be satisfied that the individual meets all of the following:

(i) a baccalaureate or higher degree from a college or university accredited by a nationally recognized accrediting agency recognized by the United States Department of Education, or a college or university approved by the board, and completed a total of one hundred fifty semester credits of post-secondary education, including at least a total of twenty-four semester credits of accounting and auditing, business law, economics, technology, finance or tax subjects of a content satisfactory to the board and an additional twelve semester credits in accounting and auditing subjects or tax subjects of a content 20250SB0719PN0862 - 4 - satisfactory to the board, not necessarily as part of the individual's undergraduate or graduate work;

20250SB0719PN0750 - 4 - or (iii) a Master's Degree or other post-graduate degree from a college or university accredited by a nationally recognized accrediting agency recognized by the United States Department of Education, or a college or university approved by the board, and completed at least a total of twenty-four semester credits, which credits shall be in accounting and auditing, business law, economics, technology, finance or tax subjects of a content satisfactory to the board, not necessarily as part of his undergraduate or graduate work.

[(c) Before an individual who takes the examination under subsection (b)(3)(ii) or (iii) may be issued a certificate, the individual must also satisfy the education requirement in 20250SB0719PN0862 - 5 - subsection (b)(3)(i).] (d) Before an individual may be issued a certificate, the board shall be satisfied that the individual has completed [at least one year of] necessary experience that:

(2) included providing any type of service or advice involving the use of accounting, attest, compilation, management advisory, financial advisory, tax or consulting skills, which were gained through employment in government, industry, academia 20250SB0719PN0750 - 5 - or public practice;

(2) An individual who passed at least one part of the 20250SB0719PN0862 - 6 - examination taken before December 31, 2011, pursuant to subsection (b)(3)(ii), may be issued a certificate before or after December 31, 2011, without satisfying the education requirement in subsection (c), but not until the individual has completed at least two years of experience that satisfies the requirements in subsection (d)(2), (3) and (4).

(3) An individual who passed at least one part of the examination taken before December 31, 2011, pursuant to 20250SB0719PN0750 - 6 - subsection (b)(3)(iii), may be issued a certificate before or after December 31, 2011, without satisfying the education requirement in subsection (c) and may complete the one year of experience required by subsection (d) within one hundred twenty months preceding the date of application for a certificate.] (f) After passage of the examination, a certificate may be issued to an individual:

Any determination as to whether substantial equivalency exists with respect to a state or individual for purposes of this act shall be consistent with any determination as to substantial equivalency with respect to that state or individual made by the 20250SB0719PN0862 - 7 - National Association of State Boards of Accountancy National Qualification Appraisal Service.

(1) Notwithstanding any other provision of this act, an individual whose principal place of business is not in this Commonwealth and who has a valid certificate or right to practice public accounting from a state that is substantially equivalent shall be presumed to have qualifications substantially equivalent to the Commonwealth's requirements and 20250SB0719PN0750 - 7 - shall have all the privileges and obligations of a licensee of the Commonwealth without the need to obtain a certificate or license under this act.

(i) sufficient contact with this Commonwealth for the exercise of personal jurisdiction by the board and the courts of 20250SB0719PN0862 - 8 - this Commonwealth over the individual in any action or proceeding arising out of acts or omissions by the individual;

and (iv) consent by the individual to the appointment of the board of accountancy or other regulatory authority of the state in which the principal place of business of the individual is 20250SB0719PN0750 - 8 - located as the agent upon which process may be served in any action or proceeding by the board against the individual.

If the order imposing discipline is appealed or stayed, the board shall send 20250SB0719PN0862 - 9 - a subsequent notice to each regulatory authority advising of the filing of the appeal or entry of the stay.

(7) An individual exercising the right to practice under this section may identify the fact that the individual practices 20250SB0719PN0750 - 9 - with a partnership, corporation or other association and may use its name even if the partnership, corporation or other association is not a licensee.

20250SB0719PN0862 - 10 - * * * Section 5.4.

* * * 20250SB0719PN0750 - 10 - (b) A qualified unlicensed entity may practice public accounting in this Commonwealth through an individual who:

20250SB0719PN0862 - 11 - (A) obtained a baccalaureate degree with at least 150 AND <-- COMPLETED A TOTAL OF AT LEAST 150 SEMESTER credit hours or a higher degree from an accredited college or university and includes credits in accounting, auditing, business law, economics, technology, finance, tax subjects or any other courses approved by the board;

(A) obtained a baccalaureate degree from an accredited 20250SB0719PN0750 - 11 - college or university that includes credits in accounting, auditing, business law, economics, technology, finance, tax subjects or any other courses approved by the board, even if the credits are not part of the individual's baccalaureate degree;

(iv) Consent by the individual to the appointment of the board or other regulatory authority of the state in which the 20250SB0719PN0862 - 12 - principal place of business of the individual is located as the agent upon which process may be served in any action or proceeding by the board against the individual.

(4) If the board imposes discipline on an individual exercising the right to practice under this section, the board shall, as soon as practicable, notify the board of accountancy 20250SB0719PN0750 - 12 - or other regulatory authority in each state where the board has learned during the disciplinary process that the individual has been granted a certificate or license to practice public accounting of the imposition of the discipline.

(6) An individual practicing under this section or a firm or 20250SB0719PN0862 - 13 - qualified unlicensed entity practicing under section 5.4 may provide professional services in this Commonwealth in the same manner as a licensee, including without limitation, in person or by mail, telephone or electronic means.

(7) An individual whose principal place of business is not located in this Commonwealth and who holds a valid active license as a certified public accountant from a state that is valid in this Commonwealth as of the effective date of this clause shall continue to have all of the PRACTICE privileges of <-- a licensee in this Commonwealth without the need to obtain a license under section 4.2 or 5.

20250SB0719PN0750 - 13 - (8) The board shall not require notice or filing or payment of a fee by an individual, firm or qualified unlicensed entity in connection with practicing under section 5.4 or this section.

Licenses to Practice.--* * * (d.1) A license LICENSEE practicing under reciprocity under <-- section 5 or 5.1 or automatic mobility shall only be required to comply with the continuing education requirements of the jurisdiction where the licensee's principal license is renewed <-- as long as the licensee maintains a substantial equivalency license in the other state.

ACTIVE* AND* RENEWED,* WHICHSection IS8. THE <-- STATE OF THE LICENSEE'S PRINCIPAL PLACE OF BUSINESS.

IF THE LICENSEE'S PRINCIPAL PLACE OF BUSINESS IS LOCATED IN A STATE THAT HAS NO CONTINUING EDUCATION REQUIREMENTS FOR RENEWAL OF A LICENSE, THE LICENSEE SHALL COMPLY WITH ALL CONTINUING EDUCATION REQUIREMENTS FOR RENEWAL UNDER THIS ACT AND THE BOARD'S REGULATIONS.

* * * 20250SB0719PN0862 - 14 - Section 8.

Grounds for Discipline.--(a) In accordance with the procedure provided in section 9 of this act, the board may revoke, suspend, limit or otherwise restrict the certificate of a certified public accountant or the registration of a public 20250SB0719PN0750 - 14 - accountant, may revoke, suspend, limit or otherwise restrict any license issued under this act, may censure or publicly reprimand the holder of any certificate, registration or license, may require completion of general or a specific number of continuing professional education courses or may require more frequent peer review or other remedial action, or may revoke, suspend or limit the right of an individual to practice under section [5.2] 5.5 of this act or censure or publicly reprimand an individual practicing under section [5.2] 5.5 of this act for any one or any combination of the following causes:

20250SB0719PN0862 - 15 - (iii) a license to practice under this act;

Unlawful Acts.--(a) Except as provided in sections [5.2 and] 5.4 and 5.5 of this act, it is unlawful for any person to hold himself out as or otherwise use the title or designation "certified public accountant," or the abbreviation 20250SB0719PN0750 - 15 - "CPA," or any other title, designation, words, letters or abbreviation tending to indicate that the person is a certified public accountant or engaged in the practice of public accounting unless the person has received or has been notified in writing by the board that he has qualified to receive a certificate of certified public accountant issued by this Commonwealth, which is not revoked or suspended.

* * * (c) Except as provided in sections [5.2 and] 5.4 and 5.5 of this act, it is unlawful for any partnership, corporation or other association to hold itself out as or otherwise use the title or designation "certified public accountant" or "public accountant" or the abbreviation "CPA" or "PA," or any other 20250SB0719PN0862 - 16 - title, designation, words, letters or abbreviation tending to indicate that the partnership, corporation or other association is composed of or includes certified public accountants or public accountants unless the partnership, corporation or other association holds a current license under section 8.8 of this act.