1Amending the act of May 26, 1947 (P.L.318, No.140), entitled, as
2amended, "An act relating to the practice of public
3accounting; providing for the examination, education and
4experience requirements for certification of certified public
5accountants and for the licensing of certified public
6accountants, public accountants and firms; requiring
7continuing education and peer review; providing for the
8organization and ownership of firms and for the procedures
9and grounds for discipline and reinstatement of licensees;
10prescribing the powers and duties of the State Board of
11Accountancy and the Department of State; providing for
12ownership of working papers and confidentiality; regulating
13the professional responsibility of licensees; defining
14unlawful acts and acts not unlawful; providing penalties; and
15repealing existing laws," further providing for certificate
16requirements, for equivalency practice for individuals and
17for equivalency practice for firms and entities.

18The General Assembly of the Commonwealth of Pennsylvania
19hereby enacts as follows:

20Section 1. Sections 4.2, 5.2 and 5.4 of the act of May 26,
211947 (P.L.318, No.140), known as the CPA Law, reenacted and
22amended December 8, 1976 (P.L.1280, No.286) and added July 9,
232008 (P.L.954, No.73), are amended to read:

24Section 4.2. Requirements for Issuance of Certificate.--(a)

1The board shall issue a certificate upon application by an
2individual who has passed the examination and meets the
3education and experience requirements in this section.

4(b) Before an individual may take the examination, the board
5shall be satisfied that the individual:

6(1) has attained eighteen years of age;

7(2) is of good moral character; and

8(3) has graduated with:

9(i) a baccalaureate or higher degree from a college or
10university accredited by a nationally recognized accrediting
11agency recognized by the United States Department of Education,
12or a college or university approved by the board, and completed
13a total of one hundred fifty semester credits of post-secondary
14education, including at least a total of twenty-four semester
15credits of accounting and auditing, business law, finance or tax
16subjects of a content satisfactory to the board and an
17additional twelve semester credits in accounting, auditing and
18tax subjects of a content satisfactory to the board, not
19necessarily as part of the individual's undergraduate or
20graduate work;

21(ii) a baccalaureate degree from a college or university
22accredited by a nationally recognized accrediting agency
23recognized by the United States Department of Education, or a
24college or university approved by the board, and completed at
25least a total of twenty-four semester credits, which credits
26shall be in accounting and auditing, business law, finance or
27tax subjects of a content satisfactory to the board, not
28necessarily as a part of his undergraduate work; or

29(iii) a Master's Degree or other post-graduate degree from a
30college or university accredited by a nationally recognized

1accrediting agency recognized by the United States Department of
2Education, or a college or university approved by the board, and
3completed at least a total of twenty-four semester credits,
4which credits shall be in accounting and auditing, business law,
5finance or tax subjects of a content satisfactory to the board,
6not necessarily as part of his undergraduate or graduate work.

7(c) Before an individual who takes the examination under
8subsection (b)(3)(ii) or (iii) may be issued a certificate, the
9individual must also satisfy the education requirement in
10subsection (b)(3)(i).

11(d) Before an individual may be issued a certificate, the
12board shall be satisfied that the individual has completed at
13least one year of experience that:

14(1) was completed within sixty months preceding the date of
15application for a certificate;

16(2) included [not less than four hundred hours of attest
17activity in any of the following:

18(i) public accounting;

19(ii) as an internal auditor, if the internal audit function
20reports to an independent board or similar body responsible for
21oversight of the financial reporting process; or

22(iii) as an auditor with a unit of Federal, State or local
23government] providing any type of service or advice involving 
24the use of accounting, attest, compilation, management advisory, 
25financial advisory, tax or consulting skills, which were gained 
26through employment in government, industry, academia or public 
27practice;

28(3) was of a caliber satisfactory to the board; and

29(4) was [supervised] verified by an individual with a
30current license to practice public accounting as a certified

1public accountant or public accountant in this Commonwealth or
2another state.

3(e) The following requirements may be complied with instead
4of the otherwise applicable provisions of subsections (b), (c)
5and (d):

6(1) An individual who [takes] took the examination before
7December 31, 2011, but [does] did not pass at least one part
8taken before that date, may not be issued a certificate until
9the individual:

10(i) has satisfied the education requirement in subsection
11(c), if applicable; and

12(ii) has completed at least one year of experience described
13in subsection (d)(2), (3) and (4) within one hundred twenty
14months preceding the date of application for a certificate.

15(2) An individual who [passes] passed at least one part of
16the examination taken before December 31, 2011, pursuant to
17subsection (b)(3)(ii), may be issued a certificate before or
18after December 31, 2011, without satisfying the education
19requirement in subsection (c), but not until the individual has
20completed at least two years of experience that satisfies the
21requirements in subsection [(d)(3)] (d)(2), (3) and (4)[, except
22that the experience must include at least eight hundred hours of
23attest activity]. The experience may be completed within one
24hundred-twenty months preceding the date of application for a
25certificate.

26(3) An individual who [passes] passed at least one part of
27the examination taken before December 31, 2011, pursuant to
28subsection (b)(3)(iii), may be issued a certificate before or
29after December 31, 2011, without satisfying the education
30requirement in subsection (c) and may complete the one year of

1experience required by subsection (d) within one hundred twenty
2months preceding the date of application for a certificate.

3Section 5.2. Practice in this Commonwealth by Individuals
4under Substantial Equivalency.--(a) A person may practice
5public accounting in this Commonwealth under substantial
6equivalency as provided in this section and section 5.4 [if the
7state the person is licensed in has also adopted into law a
8provision allowing for practice under substantial equivalency
9that includes no notice and no fee as provided for in subsection
10(b)(9)]. Any determination as to whether substantial equivalency
11exists with respect to a state or individual for purposes of
12this act shall be consistent with any determination as to
13substantial equivalency with respect to that state or individual
14made by the National Association of State Boards of Accountancy
15National Qualification Appraisal Service.

16(b) The following apply to practice in this Commonwealth
17under substantial equivalency:

18(1) Notwithstanding any other provision of this act, an
19individual whose principal place of business is not in this
20Commonwealth and who has a valid certificate or right to
21practice public accounting from a state that is substantially
22equivalent shall be presumed to have qualifications
23substantially equivalent to the Commonwealth's requirements and
24shall have all the privileges and obligations of a licensee of
25the Commonwealth without the need to obtain a certificate or
26license under this act.

27(2) Notwithstanding any other provision of this act, an
28individual whose principal place of business is not in this
29Commonwealth and who has a valid certificate or right to
30practice public accounting from a state that is not

1substantially equivalent shall be presumed to have
2qualifications substantially equivalent to the Commonwealth's
3requirements and shall have all the privileges and obligations
4of a licensee of the Commonwealth without the need to obtain a
5certificate or license if there is substantial equivalency as to
6the individual. In determining whether substantial equivalency
7exists as to an individual, the order in which the individual
8satisfied the experience, education and examination requirements
9shall be disregarded.

10(3) The exercise by an individual of the right to practice
11in this Commonwealth under this section constitutes:

12(i) sufficient contact with this Commonwealth for the
13exercise of personal jurisdiction by the board and the courts of
14this Commonwealth over the individual in any action or
15proceeding arising out of acts or omissions by the individual;

16(ii) consent by the individual to the personal and subject
17matter jurisdiction and disciplinary authority of the board;

18(iii) an agreement by the individual to comply with the
19provisions of this act and regulations promulgated by the board;
20and

21(iv) consent by the individual to the appointment of the
22board of accountancy or other regulatory authority of the state
23in which the principal place of business of the individual is
24located as the agent upon which process may be served in any
25action or proceeding by the board against the individual.

26(4) An individual who exercises the right to practice under
27this section shall be subject to disciplinary action in this
28Commonwealth for any act or omission that would subject the
29holder of a Pennsylvania certificate or license to disciplinary
30action.

1(5) An individual who passed the Uniform CPA Examination and
2holds a valid license to practice public accounting issued by
3any other state on or before December 31, 2011, may be exempt
4from the education requirements in section 4.2(b)(3)(i) and (c)
5of this act for purposes of this section.

6(6) If the board imposes discipline on an individual
7exercising the right to practice under this section, the board
8shall, as soon as practicable, notify the board of accountancy
9or other regulatory authority in each state where the board has
10learned during the disciplinary process that the individual has
11been granted a certificate or license to practice public
12accounting of the imposition of the discipline. If the order
13imposing discipline is appealed or stayed, the board shall send
14a subsequent notice to each regulatory authority advising of the
15filing of the appeal or entry of the stay. As an alternative to
16sending the notices to each regulatory authority, the board may
17send the notices instead to a multistate enforcement information
18network maintained at the time by AICPA or NASBA. The board may
19furnish investigative information and the hearing record
20relating to the disciplinary proceeding to such other regulatory
21authorities upon request.

22(7) An individual exercising the right to practice under
23this section may identify the fact that the individual practices
24with a partnership, corporation or other association and may use
25its name even if the partnership, corporation or other
26association is not a licensee.

27(8) An individual practicing under this section or a firm or
28qualified unlicensed entity practicing under section 5.4 may
29provide professional services in this Commonwealth in the same
30manner as a licensee, including without limitation, in person or

1by mail, telephone or electronic means.

2(9) The board shall not require a filing or payment of a fee
3by an individual, firm or qualified unlicensed entity in
4connection with practicing under this section or section 5.4.

5Section 5.4. Practice by Firms and Unlicensed Entities under
6Substantial Equivalency.--(a) A firm may practice public
7accounting in this Commonwealth through an individual who is not
8a licensee if the individual has the right to practice in this
9Commonwealth under section 5.2 of this act [and if the state the
10firm is licensed in has also adopted into law a provision
11allowing for practice under substantial equivalency that
12includes no notice and no fee as provided for in section 5.2(b)
13(9) of this act]. The exercise by a firm of the right to
14practice through such individuals under this subsection
15constitutes an agreement by the firm:

16(1) to be subject to the jurisdiction and disciplinary
17authority of the board with respect to acts or omissions of the
18individuals through whom it practices under this subsection;

19(2) to accept service of process from the board on behalf of
20the individuals through whom it practices under this subsection;
21and

22(3) to cooperate in any investigation by the board involving
23an individual through which the firm has practiced under this
24subsection even if the individual is no longer an owner of or
25employed by the firm.

26(b) A qualified unlicensed entity may practice public
27accounting in this Commonwealth through an individual who:

28(1) has the right to practice in this Commonwealth under
29section 5.2 of this act; or

30(2) is a licensee.

1(c) The exercise by a qualified unlicensed entity of the
2right to practice in this Commonwealth under subsection (b)
3constitutes:

4(1) sufficient contact with this Commonwealth for the
5exercise of personal jurisdiction by the board and the courts of
6this Commonwealth over the qualified unlicensed entity in any
7action or proceeding arising out of acts or omissions by an
8individual associated with the qualified unlicensed entity in
9any capacity;

10(2) consent by the qualified unlicensed entity to the
11personal and subject matter jurisdiction and disciplinary
12authority of the board;

13(3) an agreement by the qualified unlicensed entity to
14comply with the provisions of this act and regulations
15promulgated by the board; and

16(4) consent by the qualified unlicensed entity to the
17appointment of the board of accountancy or other regulatory
18authority of the state in which the principal place of business
19of the qualified unlicensed entity is located as the agent upon
20which process may be served in any action or proceeding by the
21board against the qualified unlicensed entity.

22(d) As used in this section "qualified unlicensed entity"
23means a partnership, corporation or other association that:

24(1) is not a licensee;

25(2) does not have an office in this Commonwealth; and

26(3) may lawfully practice public accounting in another
27state.

28Section 2. This act shall take effect in 60 days.