An Act To Modernize Maine's Accountancy Laws
Maine Legislature, Session 123, LD 0751
Committee: Business, Research and Economic Development
Sponsors: RECTOR, COURTNEY, BEAULIEU, CLEARY, GOULD, PRESCOTT, RICHARDSON, ROBINSON, SAMSON, WOODBURY
Amends: 32 MRSA §12201, 32 MRSA §12228, 32 MRSA §12251, 32 MRSA §12275

Legislative Document 
No. 751 
H.P.572 
House of Representatives, February 13,2007 
An Act To Modernize Maine's Accountancy Laws 
Reference to the Committee on Business, Research and Economic Development suggested 
and ordered printed. 
Presented by Representative RECTOR of Thomaston. 
Cosponsored by Senator COURTNEY of York and 
!Jl~ 
1??7JldC~ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: BEAULIEU of Auburn, CLEARY of Houlton, GOULD of South Berwick, 
PRESCOTT of Topsham, RICHARDSON of Warren, ROBINSON of Raymond, SAMSON of 
Auburn, WOODBURY of Yarmouth. 
Pruned on re~yde(j paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 32 MRSA §12201, sub-§12, as enacted by PL 1999, c. 245, §2, IS 
amended to read: 
12. Substantial equivalency. "Substantial equivalency" is a determiRatioR by the 
beaffi means that the education, examination and experience requirements for certified 
public accountants contained in the statutes and administrative rules of another 
jurisdiction are comparable to or exceed the education, examination and experience 
requirements of the board or that an individual certified public accountant's education, 
examination and experience qualifications are comparable to or exceed the education, 
examination and experience requirements of the board. 
Sec. 2. 32 MRS A §12214, sub-§l, as amended by PL 1989, c. 483, Pt. A, §53, is 
further amended to read: 
1. Organization. The board shall elect annually from among its members a chair 
and a secretary who shall be lli a certified public accountant. The board shall meet at such 
times and places as may be fixed by the board or at the call of the chair or a majority of 
the board members. Three members of the board sfia.l.l constitute a quorum for the 
transaction of business, provided that at least ORe of the 3 members preseRt is the pl:lblie 
member or the member viho is registered I:IRder seetioA 12239. The board may have a 
seal. 
The board shall retain or arrange for the retention of all applications and all 
documents under oath that are filed with the board and also records of its proceedings and 
it shall maintain a registry of the names and addresses of all licensees under this chapter. 
In any proceeding in court, civil or criminal, arising out of or founded upon any 
provisions of this chapter, copies of any of the records certified as true copies under the 
seal of the board shall be are admissible in evidence as tending to prove the contents of 
those records. 
Sec. 3. 32 MRS A §12214, sub-§9, as amended by PL 1995, c. 502, Pt. H, §42, is 
further amended to read: 
9. Fees. The board may establish application and examination fees in amounts that 
are reasonable and necessary for their respective purposes. All fees must accompany the 
applications. Application fees are nonrefundable. Examination fees may not be returned 
to an applicant should the applicant fail to pass an examination. Fees for permits may AOt 
eKeeed the follovliAg amOI:lAts: 
A. 
For aA iAitial issl:laAee or reRe'tYal of a eertified pl:lblie aeeOI:lAtaAt or pl:lblie 
aeeOI:lRtaAt permit, $100; 
B. 
For aA iRitial issl:laAee or reAewal ofa firm permit, $100; or 
C. 
For aA iAitial issl:laAee or reAeTtYal ofa firm braAeh offiee permit, $50. 
Sec. 4. 32 MRSA §12228, sub-§3, as amended by PL 2005, c. 347, Pt. D, §§ 1 
and 2, is further amended to read: 
3. Education requirement. The education requirement for a certificate, ""fliefl m\:lst 
be met Ae later thaA 120 days after aA applieaAt sits for the examiAatieA preseribed iA 
s\:lbseetioA 4, is as follows: 
B. 
At least 150 semester hours of education, including a minimum 4-year 
baccalaureate or higher degree conferred by a college or university acceptable to the 
board, the total educational program to include basic courses in accounting and 
auditing determined to be appropriate under board rules. Rules adopted by the board 
pursuant to this paragraph are routine technical rules as defined in Title 5, chapter 
375, subchapter 2-A; and 
C. 
An examination applicant who expects to meet the ed\:leatioA req\:liremeAt 
complete a minimum 4-year baccalaureate or higher degree required in paragraph B 
within 120 days following the examination is eligible to take the examination. 
Grades may not be released, nor may credit for the examination or any part of the 
examination be given to the applicant unless the education requirement is completed 
within 120 days following the examination or within such time as the board in its sole 
discretion may determine. 
Sec. 5. 32 MRSA §12228, sub-§12, as enacted by PL 1999, c. 245, §5, IS 
repealed. 
Sec. 6. 32 MRSA §12228, sub-§13, as enacted by PL 1999, c. 245, §5, IS 
repealed. 
Sec. 7. 32 MRSA §12228, sub-§14, as enacted by PL 1999, c. 245, §5, IS 
repealed. 
Sec. 8. 32 MRSA §12228, sub-§15, as enacted by PL 1999, c. 245, §5, IS 
repealed. 
Sec. 9. 32 MRSA §12251, sub-§4-A, as enacted by PL 1999, c. 245, §9, is 
repealed. 
Sec. 10. 32 MRSA §12251, sub-§4-B is enacted to read: 
4-B. Substantial eguivalency. The requirements for substantial equivalency are as 
follows: 
A. 
An individual whose principal place of business is outside the State has 
qualifications substantially equivalent to the State's requirements and has all the 
privileges of a licensee and may provide professional services in the State without the 
requirement to obtain a permit under subsection 1 if the individual holds a valid 
license as a certified public accountant from a state that the National Qualification 
Appraisal Service of the National Association of State Boards of Accountancy, or a 
successor organization, has verified to be in substantial equivalence with the certified 
public accountant licensure requirements of the National Association of State Boards 
of Accountancy and the American Institute of Certified Public Accountants Uniform 
Accountancy Act. 
B. An individual whose principal place of business is outside the State and who 
holds a valid license as a certified public accountant from a state that is not in 
substantial equivalence with the certified public accountant licensure requirements 
under paragraph A has qualifications substantially equivalent to the State's 
requirements and has all the privileges of a licensee and may provide professional 
services in the State without the requirement to obtain a permit under subsection 1 if 
the individual obtains certification from the National Qualification Appraisal Service 
of the National Association of State Boards of Accountancy, or a successor 
organization, that the individual's certified public accountant qualifications are 
substantially equivalent to the certified public accountant licensure requirements of 
the National Association of State Boards of Accountancy and the American Institute 
of Certified Public Accountants Uniform Accountancy Act. 
C. As a condition of practicing public accountancy in the State, an individual who 
has substantially equivalent qual ifications under paragraph A or B and a person or 
firm that employs the individual must consent to: 
(1) Personal and subject matter jurisdiction and disciplinary authority of the 
board; 
(2) Comply with the provisions of this chapter and the board's rules; 
(3) If the individual's license from the state of the individual's principal place of 
business becomes invalid, cease the practice of accountancy in the State; and 
(4) The appointment of the state board that issued the individual's license as the 
individual's agent upon whom process may be served in any action or proceeding 
of the board against the individual. 
Sec. 11. 32 MRS A §12252, sub-§9 is enacted to read: 
9. Firms licensed in other states. A certified public accountancy firm with a permit 
in another state that does not have an office in the State may provide professional services 
in the State through an individual who has substantially equivalent qualifications under 
section 12251, subsection 4-B, paragraph A or B. 
Sec. 12. 32 MRSA §12275, sub-§14 is enacted to read: 
14. Substantial equivalency. For purposes of subsection 1 to 8, an individual 
exercising privileges in the State under section 12251, subsection 4-B, paragraph A or B 
is deemed to be a licensee or permit holder under section 12252. 
Sec. 13. Adjustment of fees. The Department of Professional and Financial 
Regulation, Board of Accountancy, as established by the Maine Revised Statutes, Title 5, 
section 12004-A, subsection 1, shall annually adjust the fees required in Title 32, section 
12214, subsection 9 so that the total revenue received from the fees neither increases or 
decreases relative to the total fees collected in fiscal year 2007. 
SUMMARY 
This bill makes changes to the laws governing the practice of certified public 
accountants by allowing a certified public accountant licensed in another jurisdiction to 
provide professional services in the State without a permit if the accountant receives 
certification from the National Association of State Boards of Accountancy, National 
Qualification Appraisal Service that the accountant has substantially equivalent 
qualifications to qualifications required by the State. The bill also subjects the out-of-
state accountant to the Board of Accountancy's rules and jurisdiction and requires the 
Board of Accountancy to adjust the fees required for a permit to practice accountancy 
yearly so that revenues from the fees neither increase or decrease. 
Finally, this bill 
removes limitations on the Board of Accountancy's quorum requirements.