GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2009
SESSION LAW 2009-347
SENATE BILL 647
AN ACT clarifying various provisions under the laws pertaining to certified public accountants and allowing public accountants certified or licensed outside this state to practice in this state under certain circumstances.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 93-1(a)(3) reads as rewritten:
"(a) Definitions. - As used in this Chapter certain terms are defined as follows:
…
(3) A
"certified public accountant" is a person who holds a certificate as
a certified public accountant issued to him under the provisions of this
Chapter.
…."
SECTION 2. G.S. 93-3 reads as rewritten:
"§ 93-3. Unlawful use of title "certified public accountant" by individual.
It shall be unlawful for any person who has not received a
certificate of qualification or not been granted a practice privilege under
G.S. 93-10 admitting him the person to practice as a
certified public accountant to assume or use such a title, or to use any words,
letters, abbreviations, symbols or other means of identification to indicate
that the person using same has been admitted to practice as a certified public
accountant."
SECTION 3. G.S. 93-4 reads as rewritten:
"§ 93-4. Use of title by firm.
It shall be unlawful for any firm, copartnership, or
association to assume or use the title of certified public accountant, or to
use any words, letters, abbreviations, symbols or other means of identification
to indicate that the members of such firm, copartnership or association have
been admitted to practice as certified public accountants, unless each of the
members of such firm, copartnership or association first shall have received a
certificate of qualification from the State Board of Certified Public
Accountant Examiners or been granted a practice privilege admitting him
each member of the firm, copartnership, or association to practice
as a certified public accountant; provided, however, that the Board may exempt
those persons who do not actually practice in or reside in the State of
North Carolina from registering and receiving a certificate of qualifications
qualification under this section."
SECTION 4. G.S. 93-10 reads as rewritten:
"§ 93-10. Persons
certified in other states.Practice privileges.
(a) An
individual whose principal place of business is outside this State may beis
granted the privilege to perform or offer to perform services services,
whether in person or by mail, telephone, or electronic means, in this State
as a certified public accountant without notice to the Board, the submission
of any other documentation, or the payment of any fee if the individual
meets all of the following conditions:
(1) Holds a valid and unrevoked certificate as a certified public accountant, or its equivalent, issued by another state, a territory of the United States, or the District of Columbia.
(2) Holds a valid
and unrevoked license or permit to practice as a certified public accountant
issued by another state, a territory of the United States, or the District of Columbia
and that jurisdiction's requirements for licensure are substantially equivalent
to the requirements of this Chapter.Columbia.
(3) Notifies the
State Board of Certified Public Accountant Examiners that the person intends to
perform or offers to perform services in this State as a certified public
accountant.Has passed The Uniform CPA Examination.
(4) Agrees to
comply with the provisions of this Chapter and the rules adopted by the Board
regarding notification and practice.Has not been convicted of a felony
under the laws of the United States, any state, a territory of the United
States, or the District of Columbia and has never been convicted of a crime, an
essential element of which is dishonesty, deceit, or fraud unless the
jurisdiction in which the individual is licensed has determined the felony or
other crime has no effect on the individual's license.
(5) Have
an administrative notice of hearing served on the licensing board in the
individual's principal state of business, notwithstanding the individual notice
requirements of G.S. 150B-38.
(6) Pays
an annual fee not to exceed fifty dollars ($50.00).
(b) An individual who satisfies the requirements of subsection (a) of this section and exercises the privilege afforded under this section by performing or offering to perform services as a certified public accountant in this State simultaneously consents as a condition of the grant of this privilege to:
(1) Comply with the laws of this State, the provisions of this Chapter, and rules adopted by the Board.
(2) Have an administrative notice of hearing served on the licensing board in the individual's principal state of business, notwithstanding the individual notice requirements of G.S. 150B-38.
(3) Be subject to personal jurisdiction, subject matter jurisdiction, and disciplinary authority of the Board.
(c) A firm whose principal place of business is outside this State and has no office in this State is granted the privilege to perform or offer to perform services, whether in person or by mail, telephone, or electronic means, in this State as a firm without notice to the Board, submission of any other documentation, or payment of any fee, except as otherwise provided in subdivision (3) of this subsection. A firm that exercises the privilege afforded under this section simultaneously consents as a condition of the grant of the privilege to:
(1) Comply with the laws of this State, the provisions of this Chapter, and rules adopted by the Board.
(2) Be subject to personal jurisdiction, subject matter jurisdiction, and disciplinary authority of the Board.
(3) Provide notice without a fee to the Board if any individual with the firm who has been granted privileges in North Carolina to practice as a certified public accountant performs any of the following services for a client in this State:
a. A financial statement audit or other engagement performed in accordance with the Statements on Auditing Standards.
b. An examination of prospective financial information performed in accordance with the Statements on Standards for Attestation Engagements.
c. An engagement performed in accordance with the Public Company Accounting Oversight Board auditing standards."
SECTION 5. G.S. 93-12(9) reads as rewritten:
"(9) Adoption of Rules of
Professional Conduct; Disciplinary Action. - The Board shall have the power to
adopt rules of professional ethics and conduct to be observed by certified
public accountants in this State.State and persons exercising the
practice privilege authorized by this Chapter. The Board shall have the
power to revoke, either permanently or for a specified period, any certificate
issued under the provisions of this Chapter to a certified public accountant
or any practice privilege authorized by the provisions of this Chapter or
to censure the holder of any such certificate or person exercising the practice
privilege authorized by this Chapter. The Board also shall have the power to
assess a civil penalty not to exceed one thousand dollars ($1,000) for any one
or combination of the following causes:
a. Conviction of a felony under the laws of the United States or of any state of the United States.
b. Conviction of any crime, an essential element of which is dishonesty, deceit or fraud.
c. Fraud or deceit in obtaining a certificate as a certified public accountant.
d. Dishonesty, fraud or gross negligence in the public practice of accountancy.
e. Violation of any rule of professional ethics and professional conduct adopted by the Board.
Any disciplinary action taken shall be in accordance with the provisions of Chapter 150B of the General Statutes. The clear proceeds of any civil penalty assessed under this section shall be remitted to the Civil Penalty and Forfeiture Fund in accordance with G.S. 115C-457.2."
SECTION 6. This act is effective when it becomes law.
In the General Assembly read three times and ratified this the 16th day of July, 2009.
s/ Walter H. Dalton
President of the Senate
s/ Joe Hackney
Speaker of the House of Representatives
s/ Beverly E. Perdue
Governor
Approved 9:19 a.m. this 27th day of July, 2009