An Act To II
Maine Legislature, Session 123, LD 0751
Committee Amendment CA_A_H547 (House)
Amends: 32 MRSA §12201, 32 MRSA §12228, 32 MRSA §12251, 32 MRSA §12252, 32 MRSA §12275

COMMITTEE AMENDMENT "fj" to H.P. 572, L.D. 751, Bill, 
Modernize Maine's Accountancy Laws" 
"An Act To 
II 
Amend the bill by inserting after the enacting clause and before section I the 
following: 
'Sec. 1. 32 MRSA §12201, sub-§3-A, as enacted by PL 1999, c. 245, §I, is 
amended to read: 
3-A. Defined service. For purposes of section 12275, subsections 12 and 13, 
"defined service" means providing the folJowing services: 
A. 
Any audit or other engagement to be performed in accordance with the 
Statements on Auditing Standards, SAS; 
B. 
Any review of a financial statement or compiJation of a financial statement to be 
performed in accordance with the Statement on Standards for Accounting and 
Review Services, SSARS; ef 
C. 
Any examination of prospective financial information to be performed in 
accordance with the Statement on Standards for Attestation Engagements, SSAE.~ 
D. Any engagement to be performed in accordance with the auditing standards of the 
2S 
Public Company Accounting Oversight Board, established in 15 United States Code, 
Section 7211 (2007); or 
E. Any compilation of a financial statement to be performed in accordance with the 
Statement on Standards for Accounting and Review Services, SSARS. 
The statements on standards specified in this definition are those developed for general 
application by recognized national accountancy organizations.' 
Amend the bill in section 1 in subsection 12 in the 5th line (page 1, line 8 in L.D.) by 
striking out the following: "the board" and inserting the following: 'tbe board this State' 
COMMITTEE AMENDMENT 
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",;t~ 
COMMITTEE AMENDMENT "A " 
to H.P. 572, L.D. 751 
Amend the bill in section 1 in subsection 12 in the last line (page 1, line 10 in L.D.) 
by striking out the following: "the board" and inserting the following: 'the board this 
State' 
Amend the bill by striking out sections 2 and 3 and inserting the following: 
'Sec. 2. 32 MRSA §12228, sub-§I, as amended by PL 1989, c. 450, §49, is 
further amended to read: 
1. 
Certificate grant. The board shall grant the certificate of "certified public 
accountant" to any person who makes application to the board and who meets the good 
character, education, examination and experience requirements of, and who pays the fees 
prescribed by, this section, except that no certificate may be granted to a person who has 
bOOR iss1:lod holding a valid certificate issued by another state.' 
Amend the bill in section 4 in subsection 3 in paragraph C in the 5th line (page 2, line 
in L.D.) by striking out the following: "education requirement" and inserting the 
following: 'ed1:leatioR req1:liremeRt degree required in paragraph B' 
Amend the bill by striking out sections 10, 11, 12 and 13 and inserting the following: 
'Sec. 10. 32 MRSA §12251, sub-§4-B is enacted to read: 
4-B. Substantial equivalency. The requirements for substantial equivalency are as 
set out in this subsection. 
A. An individual whose principal place of business is outside the State is presumed 
to have qualifications substantially equivalent to the State's requirements and has all 
the privileges of permit holders of the State and may provide professional services in 
the State without the requirement to obtain a permit under this section or to otherwise 
notify or register with the board or pay any fee ifthe individual: 
(1) Holds a valid license as a certified public accountant from a state that the 
board has verified to be in substantial equivalence with the certified public 
accountant licensure requirements of a national association of state boards of 
accountancy and standards promulgated by the American Institute of Certified 
Public Accountants; or 
(2) 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 subparagraph (1), but the board determines that the 
individual's certified public accountant qualifications are substantially equivalent 
to the certified public accountant licensure requirements of a national association 
of state boards of accountancy and standards promulgated by the American 
Institute of Certified Public Accountants. For purposes of this subsection, the 
board may exempt an individual who passed the Uniform Certified Public 
Accountant Examination and holds a valid license issued by any other state prior 
to January I, 2012 from the education requirement in section 12228, subsection 
3, paragraph B. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT 'I} "to H.P. 572, L.D. 751 
In detennining substantial equivalence, the board may consult determinations and 
verifications from a national qualification appraisal service of a national association 
of state boards of accountancy. 
B. Notwithstanding any other provision of law, an individual who qualifies for the 
practice privilege under this subsection may offer or render professional services in 
this State, whether in person or by mail, telephone or electronic means, and no notice 
or other submission may be required of any such individual. Such an individual is 
subject to paragraph C. 
C. An individual licensee of another state exercising the privilege afforded under this 
subsection and the finn that employs that individual consent, as a condition of the 
grant of this privilege: 
(1) To the personal and subject matter jurisdiction and disciplinary authority of 
the board; 
(2) To comply with the provisions of this chapter and the board's rules; 
(3) 
To the stipulation that, in the event the license from the state of the 
individual's principal place of business is no longer valid, the individual will 
cease offering or rendering professional services in the State individually and on 
behalf of a firm; and 
(4) To 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 by this State's board against the individual. 
D. An individual who qualifies for the practice privilege under this subsection may 
perfonn any of the services listed in this paragraph for any entity with its home office 
in the State provided the individual does so through a finn that has obtained a pennit 
issued under section 12252: 
(1) 
A financial statement audit or other engagement to be perfonned in 
accordance with the Statements on Auditing Standards, SAS; 
(2) An examination of prospective financial infonnation to be perfonned in 
accordance with Statements on Standards for Attestation Engagements, SSAE; or 
(3) An engagement to be perfonned in accordance with auditing standards of the 
Public Company Accounting Oversight Board, established in 15 United States 
Code. Section 7211 (2007). 
Sec. 11. 32 MRSA §12252, sub-§l, as enacted by PL 1987, c. 489, §2, is 
amended to read: 
1. Permits granted. The board shall grant or renew permits to practice public 
accountancy to firms that make application and demonstrate their qualifications in 
accordance with this section. 
A. A finn must hold a permit issued under this section if it: 
(1) Has an office in this State perfonning any of the services described in section 
12201, subsection 3-A, paragraphs A to D; 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT 'A "to H.P. 572, L.D. 751 
(2) Has an office in this State that uses the title "CPA" or "CPA firm"; or 
(3) Does not have an office in this State but performs any of the services 
described in section 12201, subsection 3-A. paragraphs A. C or D for a client 
having its home office in this State. 
B. A firm that does not have an office in this State may perform services described in 
section 12201, subsection 3-A, paragraph B for a client having its home office in this 
State and may use the title "CPA" or "CPA firm" without a permit issued under this 
section only if: 
(1) It qualifies for a firm permit pursuant to subsections 3 and 8; and 
(2) It performs such services through an individual with practice privileges under 
section 12251, subsection 4-B. 
C. A firm that is not subject to the requirements of paragraphs A and B may perform 
professional services other than those described in section 12201, subsection 3-A 
while using the title "CPA" or "CPA firm" in this State without a permit issued under 
this section only if the firm: 
(1) Performs such services through an individual with practice privileges under 
section 12251, subsection 4-B; and 
(2) Has legal authority to perform such services in the state of that individual's 
principal place of business. 
Sec. 12. 32 MRSA §12252, sub-§3, as amended by PL 2003, c. 344, Pt. D, §22, 
is further amended to read: 
3. Firm permits. The following provisions apply to the issuance of firm permits. 
A. 
An applicant for initial issuance or renewal of a permit to practice under this 
section shall show that a simple majority of the ownership of the firm, in terms of 
financial interests and voting rights of all partners, officers, shareholders, members or 
managers, belongs to holders of certificates who are licensed in a state and that all 
partners, officers, shareholders, members or managers whose principal place of 
business is in this State eF and who perform professional services in this State hold 
valid individual permits issued by the board. Firms may include nonlicensee owners 
in accordance with paragraph B. 
B. 
A certified public accountancy firm or public accountancy firm may include 
non licensee owners as long as: 
(1) 
All non licensee owners are individuals who actively participate in the 
certified public accountancy firm or public accountancy firm; aDd 
(2) The firm complies with such other requirements as the board may impose by 
rule;.; and 
(3) The firm designates an individual who is a licensee of this State or, in the 
case of a firm that must have a permit pursuant to subsection 1, paragraph A, 
subparagraph (3), designates an individual who is a licensee of another state who 
meets the requirements set out in section 12251, subsection 4-B, paragraph A 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT"n • to H.P. 572. 1..D. 751 
who is responsible for the proper registration of the firm and identifies that 
individual who is a licensee to the board. 
Sec. 13. 32 MRSA §12252, sub-§4, as enacted by PL 1987, c. 489, §2, IS 
amended to read: 
4. Office registered. An applicant for initial issuance or renewal of a permit to 
practice under this section shall be required to register each office of the firm within this 
State with the board and to show that each such office is under the charge of a person 
holding a valid permit to practice, issued under section 1225 I or the corresponding 
provision of prior law or the laws of another state. 
Sec. 14. 32 MRSA §12275, sub-§14 is enacted to read: 
14. Substantial equivalency. For purposes of this section: 
A. As an individual exercising permit privileges in the State pursuant to section 
12251, subsection 4-8 and complying with the restrictions on the scope of such 
privileges under subsection 4-B is equivalent to an individual holding a certificate 
under section 12227 and to an individual holding a permit to practice under section 
12251, each reference in this section to certificate and permit holders is deemed to 
include, on an equal basis, individuals exercising such privileges: 
B. A firm in compliance with section 12252. subsection 1 must, for the pumoses of 
this section, be deemed to hold a valid permit to practice issued under section 12252; 
and 
C. Notwithstanding any other provision of this section, it is not a violation of this 
section if a firm that does not hold a valid permit under section 12252 and that does 
not maintain an office in this State provides professional services in this State if the 
firm complies with the requirements of section 12252, subsection 1. paragraph B or 
C, whichever is applicable.' 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
This amendment makes changes to the substantial equivalency requirements 
proposed by the bill for determining when accountants and firms licensed in other 
jurisdictions may practice in Maine without a license to require that the final 
determination of substantial equivalency is made by the Department of Professional and 
Financial Regulation, Board of Accountancy. It also removes from the bill proposed 
changes to the Board of Accountancy and removes the statutory fee cap language as well 
as the language allowing the Department of Professional and Financial Regulation to 
adjust fees, as this department already has the authority to adjust fees for each program as 
necessary. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Fiscal Detail and Notes 
Approved: 06/07/07 ::&/ac::.. 
LD751 
LR 1256(02) 
An Act To Modernize Maine's Accountancy Laws 
Fiscal Note for Bill as Amended by Committee Amendment "R " 
Committee: Business, Research and Economic Development 
Fiscal Note Required: Yes 
Fiscal Note 
Current biennium revenue decrease - Other Special Revenue Funds 
Allowing a certified public accountant licensed in another jurisdiction to provide services in the State without a permit 
if the accountant is certified to have certain qualifications may result in a loss of revenue of approximately $1,000 to 
the Board of Accountancy within the Office of Licensing and Registration, Department of Professional and Finane 
Regulation. 
LR1256(02) - Fiscal Note - Page I of I