Introduced By: Senator Celona
Date Introduced : January 15, 1998
It is enacted by the General Assembly as follows:
SECTION 1. Section 5-3.1-5 of the General Laws in Chapter 5-3.1 entitled "Public Accountancy" is hereby amended to read as follows:
5-3.1-5. Certified public accountants. -- (a) Upon application therefor and payment of the required fee, the board shall issue a certificate to any person:
(1) Who is of good character;
(2) Who has a principal residence in Rhode Island as defined in section 5-3.1-3 or a primary place of employment in Rhode Island;
(3) Who, before applying for the examinations prescribed in subdivision (a)(4), has received a baccalaureate degree from a college or university acceptable to the board, the total educational program of which includes an accounting concentration or its equivalent and courses in such related subjects as the board shall determine to be appropriate; provided, however, that after July 1, 1999, the education requirement for a certificate, which must be met before an applicant is eligible to apply for the examinations prescribed in subdivision (a)(4), shall be at least one hundred fifty (150) semester hours of college education, including a baccalaureate or higher degree conferred by a college or university acceptable to the board, the total educational program of which shall include an accounting concentration or equivalent as determined by board rule to be appropriate; {ADD provided further, however, that those candidates who shall have met all requirements for the examination prior to July 1, 1999, under the one-hundred twenty (120) semester hours of college education rule, shall be eligible to apply for the first examination scheduled to be administered after July 1, 1999, notwithstanding the fact said candidates may not have completed one hundred fifty (150) semester hours of college education; ADD}
(4) Who shall have passed written examinations in accounting and auditing and such related subjects as the board shall deem appropriate and shall specify by rule;
(5) Who shall have two (2) years' public accounting experience, or who shall have one year's public accounting experience and a master's or doctorate degree in accounting, business administration, or other related curriculum from a college or university recognized by the board; and who has satisfactorily completed such number of semester hours in accounting, auditing, and other business courses as shall be prescribed by board rules and regulations; and
(6) Who, if an out-of-state individual, (i) has passed all parts of the uniform certified public accountant examination in another jurisdiction (but has not received a certificate or similar certification in that jurisdiction); (ii) has established a principal residence in Rhode Island or a primary place of employment in Rhode Island preparatory to seeking a certificate from this state; (iii) has complied with the longer of (A) the experience requirement in the jurisdiction in which the uniform examination was taken or (B) the Rhode Island experience requirement; (iv) has complied with the educational requirements under subdivision (a)(3); and (v) has satisfactorily complied with such other requirements as the board by rule or regulation shall reasonably determine to be appropriate.
(b) The board, in its discretion, may accept the educational credits of any person who is a candidate for a certificate if it is satisfied, by appropriate means of evaluation, that such credits are an acceptable substitute for the credit requirements of subdivision (a)(3) of this section. The board, in its discretion, may waive the residency or primary place of employment requirements relating to the issuance of a certificate as stated in subdivisions (a)(2) and (a)(6) of this section.
(c) The examinations described in subdivision (a)(4) of this section shall be held by the board and shall take place as often as the board shall determine to be desirable, but in any event not less frequently than once each year. The board shall prescribe by rule the procedures to be followed in applying for and conducting the examinations and the methods to be used in grading the examinations and determining a passing grade. The board may make such use of any or all parts of the uniform certified public accountant examination and advisory grading service provided by the American Institute of Certified Public Accountants, and may contract with third parties to perform such administrative services with respect to the examinations, as the board may deem appropriate to assist it in performing its duties hereunder.
(d) The board may, by rule or regulation, provide for the granting of credit to a candidate for the satisfactory completion by such candidate of a written examination in any one or more of the subjects referred to in subdivision (a)(4) of this section which shall be given by the licensing authority in any other state. Any such rules and regulations shall include the requirement that any examination approved as a basis for the granting of credit shall, in the judgment of the board at the time of the granting of such credit, be at least as thorough as the most recent examination given by the board in the subject or subjects tested. The board may also, by rule or regulation, prescribe terms and conditions under which a candidate who passes the examination in one or more of the subjects referred to in subdivision (a)(4) of this section may be reexamined in the remaining subjects, with credit given for the subjects previously passed. It also may provide by rule or regulation for a reasonable waiting period for a candidate's reexamination in a subject previously failed. Subject to the foregoing and to such other rules and regulations as the board may adopt governing reexaminations, a candidate shall be entitled to any number of reexaminations. Except as the board may otherwise provide by a rule or regulation in order to prevent what it determines to be undue hardship to candidates, a candidate granted credit for satisfactory examination in any one or more of the subjects referred to in subdivision (a)(4) of this section shall have met the educational requirement of subdivision (a)(3) or (a)(5) of this section in effect on the date of the examination by which the candidate successfully completes the examination under subdivision (a)(4) of this section.
(e) The board shall charge each candidate for a certificate a fee for the initial examination under subsection (a) of this section, for reexamination under subsection (d) of this section for each subject in which the candidate is reexamined, and for evaluation of a candidate's educational qualifications under subsection (b) of this section. The applicable fee shall be paid by the candidate at the time of application for such examination, reexamination, or evaluation, as the case may be. Fees for examination, reexamination, and evaluation of educational qualifications shall be determined by the board and set forth in the rules and regulations issued thereby. The liability of the board to a candidate taking an examination or reexamination shall be limited to the amount of the fee received therefor.
(f) Persons who on July 1, 1995 hold a certificate issued under the laws of this state prior to such date shall not be required to obtain an additional certificate under this chapter, but shall otherwise be subject to all the provisions of this chapter; such certificate previously issued shall, for all purposes, be considered a certificate issued under this chapter and subject to the provisions hereof. Reinstatement power shall be vested in the board with respect to those certificates suspended or revoked prior to July 1, 1995, and the holder thereof may have such certificates reissued upon application therefor in accordance with section 5-3.1-15. Persons holding certificates on July 1, 1995 who are estopped from obtaining a permit under government employment restrictions may apply for a permit under section 5-3.1-7 within one (1) year following termination of that employment, and upon obtaining such permit may engage in the practice of public accounting in this state as a certified public accountant subject to the provisions of this chapter.
(g) (1) The board shall, upon application therefor and payment of a fee to be determined by the board and promulgated by rule or regulation, issue a certificate to a holder of a certificate issued by another state, provided that: (A) the applicant meets all current requirements in this state at the time application is made; and (B) at the time of the issuance of the applicant's certificate in such other state, the applicant met all requirements then applicable in this state.
(2) If the holder of a certificate issued by another state meets all current requirements in this state except the educational or experience requirements of this state as set forth in this section, or passed the examination under different credit provisions then applicable in this state, the board shall issue a certificate to such applicant upon application therefor and upon payment of the required fee, provided that: (A) the applicant has five (5) years of experience in the practice of public accountancy within the ten (10) years immediately prior to such application; or (B) the applicant has five (5) years of experience in the practice of public accountancy over a longer or earlier period and has completed fifteen (15) current semester hours of accounting, auditing, and such other related subject as the board may specify by rule, at an accredited institution, and has one (1) year of current experience in the practice of public accountancy.
(h) An applicant for issuance of a certificate under this section shall list in the application all other states in which the applicant has applied for or holds a certificate. Each applicant for or holder of a certificate issued under this section shall, within thirty (30) days of the occurrence of such event, notify the board in writing of the issuance, denial, revocation, or suspension of a certificate by any other state, or of the commencement of a disciplinary or enforcement action against the applicant or holder by any other state.
SECTION 2. This act shall take effect upon passage.
