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26.365.24 101st Legislative Session 1035 South Dakota Legislature House Bill 1035 Introduced by:
26.365.25 101st Legislative Session 1035 South Dakota Legislature House Bill 1035 ENROLLED A N ACT ENTITLED An Act to modify provisions related to the licensure of public accountants.
Representative Weisgram An Act to modify provisions related to the licensure of public accountants.
B E IT ENACTED BY THE L EGISLATURE OF THE S TATE OF S OUTH D AKOTA :
B E IT ENACTED BY THE LEGISLATURE OF THE S TATE OF S OUTH DAKOTA :
(1) "Board," the South Dakota Board of Accountancy established pursuant to this chapter or its predecessor;
(1) "Board," the South Dakota Board of Accountancy;
(2) "Certificate," a certificate as a certified public accountant certificate issued pursuant to this chapter or corresponding provisions of prior law, or a corresponding certificate as certified public accountant certificate issued, after examination, under the law of any other state;
(2) "Certificate," a certified public accountant certificate issued pursuant to this chapter or a certified public accountant certificate issued, after examination, under the law of any other state;
(3) "Client," a person or entity that agrees with a licensee to receive any a professional service, other than an employer-employee relationship;
(3) "Client," a person that agrees with a licensee to receive a professional service, other than an employer-employee relationship;
(4) "CPA firm" and "PA firm," a sole proprietorship, a corporation, a partnership, or any other form of organization permitted by law, issued a permit under this chapter;
(4) "CPA firm" and "PA firm," a sole proprietorship, corporation, partnership, or any other form of organization permitted by law, issued a permit under this chapter;
(5) "Compilation," providing a service to be performed in accordance with Statements on Standards for Accounting and Review Services (SSARS) that is presenting, which presents in the form of financial statements, and information that is the representation of management (owners) without undertaking to and does not express any assurance on the statements;
(5) "Compilation," a service performed in accordance with Statements on Standards for Accounting and Review Services, which presents in the form of financial statements and information that is the representation of management and does not express any assurance on the statements;
Overstrikes indicate deleted language.
(9) "License," a certificate issued pursuant to this chapter, a permit issued pursuant to this chapter, or a registration pursuant to this chapter;
26.365.24 2 1035 (9) "License," a certificate issued pursuant to this chapter, a permit issued pursuant to this chapter, or a registration pursuant to this chapter;
(10) "Licensee," the holder of a certificate or a permit issued pursuant to this chapter;
or in each case, a certificate, license, or permit issued under corresponding provisions of prior law;
(10) "Licensee," the holder of a certificate or a permit issued pursuant to this chapter or of a license issued under prior law, or of a permit issued pursuant to this chapter;
or in each case, a certificate, license, or permit issued under corresponding provisions of prior law;
(12A)(13) "Owner," a licensee or nonlicensee as a proprietor, partner, officer, shareholder, or member with financial rights in the a CPA firm or PA firm;
26.365.25 2 1035 (13) "Owner," a proprietor, partner, officer, shareholder, or member with financial rights in a CPA firm or PA firm;
(13)(14) "Peer review," a study, appraisal, or review of one or more aspects of the professional work of a certificate holder or CPA firm that, which performs attest or compilation services, by a qualified person or persons, who hold certificates, and who are not affiliated with the certificate holder or CPA firm being reviewed;
(14) "Peer review," a study, appraisal, or review of the professional work of a certificate holder or CPA firm, which performs attest or compilation services, by a qualified person or persons, who hold certificates, and who are not affiliated with the certificate holder or CPA firm being reviewed;
(14)(15) "Permit," a permit to practice public accountancy issued to a firm pursuant to this chapter or corresponding provisions of prior law or under corresponding provisions of the laws of other states;
(15) "Permit," a permit to practice public accountancy issued to a firm pursuant to this chapter or under corresponding provisions of the laws of other states;
(15)(16) "Practice privilege," the privilege for a person to practice public accountancy;
(16) "Practice privilege," the privilege for a person to practice public accountancy;
(16)(17) "Principal place of business," the office location designated by the a licensee for purposes of substantial equivalency and reciprocity the purpose of practice privilege;
(17) "Principal place of business," the office location designated by a licensee for the purpose of practice privilege;
(17)(18) "Professional," arising out of, or related to, the specialized knowledge or skills associated with CPAs or Pas certified public accountants or public accountants;
(18) "Professional," arising out of, or related to, the specialized knowledge or skills associated with certified public accountants or public accountants;
(18)(19) "Public accountant," a person holding who holds a public accountant license issued pursuant to provisions of prior law;
(19) "Public accountant," a person who holds a public accountant license issued pursuant to provisions of prior law;
and (19)(20) "State," any state of the United States, the District of Columbia, Puerto Rico, the U.S.
and (20) "State," any state of the United States, the District of Columbia, Puerto Rico, the U.S.
Virgin Islands, Guam, and the Commonwealth of the Northern Mariana Islands;
Virgin Islands, Guam, and the Commonwealth of the Northern Mariana Islands.
(20) "Substantial equivalency," a determination by the board or its designee that the education, examination, and experience requirements contained in the statutes and administrative rules of another jurisdiction are comparable to, or exceed the education, examination, and experience requirements contained in this chapter or that an individual CPA's education, examination, and experience qualifications are comparable to or exceed the education, examination, and experience requirements Overstrikes indicate deleted language.
26.365.24 3 1035 contained in this chapter.
In ascertaining substantial equivalency, the board or its designee shall take into account the qualifications without regard to the sequence in which experience, education, or examination requirements were attained.
The board may shall promulgate rules, in accordance with chapter 1- 26, governing the board's administration and enforcement of this chapter and the conduct of licensees in the following matters:
The board shall promulgate rules, in accordance with chapter 1-26, governing the board's administration and enforcement of this chapter and the conduct of licensees in the following matters:
(c) Responsibilities to the public;
HB1035 ENROLLED 26.365.25 3 1035 (c) Responsibilities to the public;
Overstrikes indicate deleted language.
(10) Rules specifying peer review administrative fees, not to exceed one hundred twenty-five dollars, plus seventy-five dollars for a peer review form filed late;
26.365.24 4 1035 (10) Rules specifying peer review administrative fees, not to exceed one hundred twenty-five dollars, plus seventy-five dollars for a peer review form filed late;
(13) Rules specifying the procedures and fees, not to exceed one hundred dollars for each owner, plus one hundred dollars for the a firm practicing public accountancy in this state, for initial issuance or renewal of a firm permit.
(13) Rules specifying the procedures and fees, not to exceed one hundred dollars for each owner, plus one hundred dollars for a firm practicing public accountancy in this state, for initial issuance or renewal of a firm permit.
and (c) A firm permit, not to exceed one hundred dollars for each owner, plus one hundred dollars for the a firm practicing public accountancy in this state.
and (c) A firm permit, not to exceed one hundred dollars for each owner, plus one hundred dollars for a firm practicing public accountancy in this state.
(16) Rules specifying procedures and fees for the late renewal of certificates, not to exceed one hundred dollars, and firm permits, not to exceed one hundred dollars for each owner, plus one hundred dollars for the a firm practicing public accountancy in this state.
HB1035 ENROLLED 26.365.25 4 1035 (16) Rules specifying procedures and fees for the late renewal of certificates, not to exceed one hundred dollars, and firm permits, not to exceed one hundred dollars for each owner, plus one hundred dollars for a firm practicing public accountancy in this state.
(a) Late filing of a certificate based on substantial equivalency, not to exceed one hundred dollars;
(a) Late issuance of certificates, not to exceed one hundred dollars;
(b) Late issuance of certificates, not to exceed one hundred dollars;
and (b) Late filing of firm permits, not to exceed one hundred dollars for each owner, plus one hundred dollars for a firm practicing public accountancy in this state.
and Overstrikes indicate deleted language.
26.365.24 5 1035 (c)(b) Late filing of firm permits, not to exceed one hundred dollars for each owner, plus one hundred dollars for the a firm practicing public accountancy in this state.
and (21) Rules defining active and inactive status of both certificate and public accountant license holders who are not practicing public accountancy;
and (21) Rules defining active and inactive status of certificate and license holders who are not practicing public accountancy.
and (22) Rules specifying procedures and fees, not to exceed one hundred dollars, on substantial equivalency.
The education requirement for a certificate, which shall be met before one hundred days after an applicant sits for the examination prescribed in this chapter, is at least one hundred fifty semester hours of college education, including graduation from an accredited college or university with a baccalaureate or a graduate degree in accounting, or the satisfactory completion of a course of study which the board has determined to be substantially the equivalent of an accounting degree, including related courses in other areas of business administration.
Such courses of study may be in a college or university, recognized by the board.
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An applicant for initial issuance of a certificate under this chapter shall show that the applicant has acquired one year of experience.
An applicant for a certificate, who holds a graduate degree that satisfies the requirements to sit for an examination, pursuant to § 36-20B-15, shall provide to the board documentation that the applicant has completed one year of experience in accounting.
This experience shall include providingAn applicant for a certificate, who holds a graduate degree that satisfies the requirements to sit for an examination, pursuant to § 36-20B-15, shall provide to the board documentation that the applicant has completed one year of experience in accounting.
An applicant for a certificate, who holds a bachelor's degree that satisfies the requirements to sit for an examination, pursuant to § 36-20B-15, shall provide to the board documentation that the applicant has completed:
Overstrikes indicate deleted language.
HB1035 ENROLLED 26.365.25 5 1035 (1) One year of experience in accounting and thirty semester credit hours of education, in addition to the number of hours required to obtain the applicant's bachelor's degree, at an accredited institution of higher education;
26.365.24 6 1035 An applicant for a certificate, who holds a bachelor's degree that satisfies the requirements to sit for an examination, pursuant to § 36-20B-15, shall provide to the board documentation that the applicant has completed:
(1) One year of experience in accounting and thirty semester credit hours of education, in addition to the number of hours required to obtain the applicant's bachelor's degree, at an accredited institution of higher education;
For the purposes of this section, experience in accounting includes any type of service or advice involving the use of accounting, attest, management advisory, financial advisory, tax, or consulting skills, all of which were verified by a licensee, meeting and meet requirements prescribed by the board, by rule promulgated pursuant to chapter 1- 26.
For the purposes of this section, experience in accounting includes any type of service or advice involving the use of accounting, attest, management advisory, financial advisory, tax, or consulting skills, all of which were verified by a licensee and meet requirements prescribed by the board, by rule promulgated pursuant to chapter 1-26.
Acceptable experience may be gained completed through employment in government, industry, academia, or public practice.
Acceptable experience may be completed through employment in government, industry, academia, or public practice.
Any person holding who holds a valid certificate issued by this state prior to July 1, 2002, is deemed to have met the requirements of this section.
Any person who holds a valid certificate issued by this state prior to July 1, 2002, is deemed to have met the requirements of this section.
An individual who passes the examination as a South Dakota candidate, and who satisfies the requirements set forth in § 36-20B-21, may apply for a certificate in accordance with requirements and by such date established by rule, the board, in rule promulgated pursuant to chapter 1-26.
An individual who passes the examination, and who satisfies the requirements set forth in § 36-20B-21, may apply for a certificate in accordance with requirements established by the board, in rule promulgated pursuant to chapter 1-26.
The board shall grant or renew a certificate to any person who makes application and demonstrates qualifications that are in accordance with the provisions of this chapter or eligibility under the substantial equivalency standard provided in this chapter.
The board shall grant or renew a certificate to any person who makes application and demonstrates qualifications that are in accordance with the provisions of this chapter.
The board shall must issue a certificate to an applicant who does not qualify for reciprocity under the substantial equivalency standard provided in this chapter but who holds a certificate, license, or permit issued by another state upon a showing, if the applicant provides documentation that:
The board must issue a certificate to an applicant who holds a certificate, license, or permit issued by another state, if the applicant provides documentation that:
(1) The applicant has passed the examination required for issuance of the applicant's certificate certification in the applicant's state, with grades that would have been passing grades at the time in this state;
(1) The applicant has passed the examination required for certification in the applicant's state, with grades that would have been passing grades at the time in this state;
(2) The applicant had has at least four years of experience of the type described in this chapter, or the applicant meets equivalent requirements prescribed by the board, Overstrikes indicate deleted language.
(2) The applicant has at least four years of experience of the type described in this chapter, or the applicant meets equivalent requirements prescribed by the board, by rule promulgated pursuant to chapter 1-26, after passing the examination, upon which the applicant's certificate was based, and within the ten years immediately preceding the application;
26.365.24 7 1035 by rule promulgated pursuant to chapter 1-26, after passing the examination, upon which the applicant's certificate was based, and within the ten years immediately preceding the application;
and (3) The applicant has fulfilled the requirements of continuing professional education that would have been applicable under subdivision (2), if the applicant's certificate, HB1035 ENROLLED 26.365.25 6 1035 license, or permit was issued more than four years prior to submitting an application for an initial certificate under this chapter.
and (3) The applicant has fulfilled the requirements of continuing professional education that would have been applicable under subdivision (2), if the applicant's certificate, license, or permit was issued more than four years prior to the submitting an application for issuance of an initial certificate under this chapter.
Before establishing a principal place of business in this state, a certificate holder a person who is licensed by another state shall request the issuance of must request a certificate from the board.
Before establishing a principal place of business in this state, a person who is licensed by another state must request a certificate from the board.
The board shall issue a certificate to any applicant who obtains, from the board of the other state, verification that such applicant's qualifications are substantially equivalent that the applicant's qualifications are comparable to the CPA licensure requirements of this chapter, as determined by the board.
The board shall issue a certificate to any applicant who obtains, from the board of the other state, verification that the applicant's qualifications are comparable to the licensure requirements of this chapter, as determined by the board.
The board shall must issue a certificate to a holder of a substantially equivalent a foreign designation that the board determines to be comparable to a certificate issued by this state, if the following conditions are satisfied:
The board must issue a certificate to a holder of a foreign designation that the board determines to be comparable to a certificate issued by this state, if:
(1) The foreign authority which that granted the designation makes similar provision to allow a person who holds a valid certificate issued by this state to obtain such the foreign authority's comparable designation;
(1) The foreign authority that granted the designation makes similar provision to allow a person who holds a valid certificate issued by this state to obtain the foreign authority's comparable designation;
(3) The applicant received the designation, based on educational and examination standards substantially equivalent that the board determines to be comparable to those in effect in this state, at the time the foreign designation was granted, and the designation was issued upon the basis of educational, examination, and experience requirements established by the foreign authority or by law;
(3) The applicant received the designation, based on educational and examination standards that the board determines to be comparable to those in effect in this state, at the time the foreign designation was granted, and the designation was issued upon the basis of educational, examination, and experience requirements established by the foreign authority or by law;
(4) The applicant has passed a qualifying examination, with the examination grading and passing grades being which uses a grading system that is uniform with those Overstrikes indicate deleted language.
(4) The applicant has passed a qualifying examination, which uses a grading system that is uniform with those applicable in other states, and an examination approved by the board, on the law, rules, and code of ethical conduct in effect in this state;
26.365.24 8 1035 applicable in other states, and an examination acceptable to approved by the board, on the law, rules, and code of ethical conduct in effect in this state;
(5) The applicant received the designation based on educational and examination standards that the board determines to be comparable to those in effect in this state at the time the foreign designation was granted;
and (5) The applicant received the designation based on educational and examination standards substantially equivalent that the board determines to be comparable to those in effect in this state at the time the foreign designation was granted;completed (6) The applicant has:
(6) The applicant has:
(a) Completed an experience requirement substantially equivalent that the board determines to be comparable to the requirement provided in this chapter, in the jurisdiction which that granted the foreign designation or has completed;
(a) Completed an experience requirement that the board determines to be comparable to the requirement provided in this chapter, in the jurisdiction that granted the foreign designation;
(b) Completed four years of professional experience in this state;
HB1035 ENROLLED 26.365.25 7 1035 (b) Completed four years of professional experience in this state;
or meets (c) Met equivalent requirements prescribed by the board, by rule promulgated pursuant to chapter 1-26, within the ten years immediately preceding the application;
or (c) Met equivalent requirements prescribed by the board, by rule promulgated pursuant to chapter 1-26, within the ten years immediately preceding the application;
An applicant under this section shall list in the application all jurisdictions, foreign and domestic, in which the applicant has applied for, or holds, a designation to practice public accountancy, and each.
An applicant under this section shall list in the application all jurisdictions in which the applicant has applied for, or holds, a designation to practice public accountancy.
The board has the sole authority to interpret the application of the provisions of this section.
An individual whose principal place of business is not in this state and who holds a valid certificate or license as a certified public accountant from any state which the board has verified to be in substantial equivalence with the CPA licensure requirements of this chapter is presumed to have qualifications substantially equivalent to requirements of this state and shall have, has all the privileges of certificate holders and licensees of a licensee under this chapter, without the need to obtain a certificate or permit under this chapter, provided that the individual has passed the uniform certified public accountant examination, and has obtained:
An individual whose principal place of business is not in this state and who holds a valid certificate or license as a certified public accountant from any state, has all the privileges of a licensee under this chapter, without the need to obtain a certificate or permit under this chapter, provided that the individual has passed the uniform certified public accountant examination, and has obtained:
Overstrikes indicate deleted language.
(1) A bachelor's degree in accounting, or in a course of study that the board has determined to be comparable to an accounting degree, and has completed:
26.365.24 9 1035 (1) A bachelor's degree in accounting, or in a course of study that the board has determined to be comparable to an accounting degree, and has completed:
Notwithstanding any other provision of law, an individual who offers or renders professional services under this section, whether in person, or by mail, telephone, or electronic means, shall must be granted practice privileges in this state, and no notice, fee, or other submission is required of the individual.
Notwithstanding any other provision of law, an individual who offers or renders professional services under this section, whether in person, or by mail, telephone, or electronic means, must be granted practice privileges in this state, and no notice, fee, or other submission is required of the individual.
However, theThe individual shall be is subject to the requirements of § 36-20B-68.
The individual is subject to the requirements of § 36-20B-68.
Section 10.
HB1035 ENROLLED 26.365.25 8 1035 Section 10.
Any individual whose principal place of business is not in this state who holds a valid certificate or license as a certified public accountant from any state which the board has not verified to be in substantial equivalence with the CPA licensure requirements of this chapter is presumed to have qualifications substantially equivalent to this state's requirements and shall have all the privileges of certificate holders and licensees of this state without the need to obtain a certificate or permit under this chapter if the CPA qualifications of the individual are substantially equivalent to the CPA licensure requirements of this chapter.
An individual shall continue to hold practice privileges, without needing to obtain a license under this chapter, if the individual:
Notwithstanding any other provision of law, an individual who offers or renders professional services, whether in person, or by mail, telephone, or electronic means, under this section shall be granted practice privileges in this state, and no notice, fee, or other submission is required of the individual.
However, the individual shall be subject to the requirements of § 36-20B-68 An individual shall continue to hold practice privileges, without needing to obtain a license under this chapter, if the individual:
and Overstrikes indicate deleted language.
and (3) On or before December 31, 2024, exercised practice privileges in this state under § 36-20B-66, as it existed on December 31, 2024.
26.365.24 10 1035 (3) On or before December 31, 2024, exercised practice privileges in this state under § 36-20B-66, as it existed on December 31, 2024.
HB1035 ENROLLED 26.365.25 9 1035 An Act to modify provisions related to the licensure of public accountants.
Underscores indicate new language.
Received at this Executive Office I certify that the attached Act originated in this _____ day of _____________, the:
Overstrikes indicate deleted language.
at ____________M.
House as Bill No.
1035 By Chief Clerk of the House for the Governor The attached Act is hereby approved this ________ day of Speaker of the House ______________, A.D., 2026 Attest:
Governor Chief Clerk of the House STATE OF SOUTH DAKOTA, ss.
Office of the Secretary of State President of the Senate Filed ____________, 2026 Attest:
at _________ o'clock __M.
Secretary of the Senate Secretary of State House Bill No.
1035 By File No.
____ Asst.
Secretary of State Chapter No.
______ HB1035 ENROLLED
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