An Act To Simplify Maine's Accountancy Laws.
Maine Legislature, Session 124, LD 1372
Committee: Business, Research and Economic Development
Sponsors: SMITH
Amends: 32 MRSA §12201, 32 MRSA §12213, 32 MRSA §12227, 32 MRSA §12228, 32 MRSA §12229, 32 MRSA §12230, 32 MRSA §12231, 32 MRSA §12232, 32 MRSA §12233, 32 MRSA §12234, 32 MRSA §12241, 32 MRSA §12242, 32 MRSA §12251, 32 MRSA §12263, 32 MRSA §12273-A, 32 MRSA §12274, 32 MRSA §12275

MAINE STATE LEGISLATURE 
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124th MAl E LEGISLATURE 
FIRST REGULAR SESSIuN-2009 
Legislative Document 
No. 1372 
. H.P. 962 
House of Representatives, April 2, 2009 
An Act To Simplify Maine's Accountancy Laws. 
Submitted by the Department of Professional and Financial Regulation pursuant to Joint 
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Rule 204. 
Reference to the Committee on Business, Research and Economic Development suggested 
and ordered printed. 
Presented by Representative SMITH of Monmouth . 
Prinwd nil rccyclcLl p<lpcr 
'77/~ 111 .17l.!LC:1~vlYwi 
MILLICENT M. MacFARLAND 
Clerk 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 32 MRSA §12201, sub-§2, as enacted by PL 1987, c. 489, §2, is amended 
to read: 
2. Certificate. "Certificate" means a certificate as "certified public accountant" 
issued under section 12227 or corresponding provisions of prior law, and a certificate as 
"public accountant" issued under section 12239 or corresponding provisions of prior law, 
or a corresponding certificate as a certified public accountant issued after examination 
under the law of any other state. 
Sec. 2. 32 MRSA §12201, sub-§6, as amended by PL 2007; c.402, Pt. Z, §1, is 
further amended to read: 
II 
6. Licensee. "Licensee" means a person who holds a license issued by the board 
under section ~ 
12230 or 12231 or a corresponding provision of prior law, or a firm 
that holds a license issued by the board under section 12252. 
Sec. 3. 32 MRSA §12213; as amended by PL 2007, c. 402, Pt. Z, §5 and c. 621, 
§ 11, is further amended to read: 
§12213. Appointment 
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The Board of Accountancy, as established by Title 5, section 12004-A, subsection 1, 
within the department consists of 5 members appointed by the Governor. Each member of 
the board must be a resident of this State. Four members must be holders of certificates 
. issued under section 12227 and licenses issued under seCtion ~ 
12230 or 12231 or a 
corresponding provision of prior law and must have had, as their principal occupation, 
active practice as certified public accountants for at least the 5 preceding years. One 
member of the board must be a public member as defined in Title 5, section 12004-A. 
Appointments are for 3-year terms. Appointments of members must comply with Title 
10, section 8009. The Governor may remove a member of the board for cause. 
Sec. 4. 32 MRSA §12227, as enacted by PL 1987, c. 489, §2, is amended to read: 
§12Z27. Licenses; certi.fied public accountants 
Any person who shall have received receives from the board a certificate of his 
qualifications I icense to practice as a certified public accountant; prior to the effective 
date of this chapter or as provided in section 12228, shall this subchapter may be styled 
. and known as a certified public accountant,. and no other persons may assume that title or 
use the abbreviation "CPA" or any other words, letters or figures to indicate· that the 
person using the title is a certified public accountant. 
Sec. 5. 32 MRSA §12228, sub-§l, as repealed and replaced by PL 2007, c. 695, 
Pt. A, §37, is repealed. 
. 
Sec. 6. 32 MRSA §12228, sub-§l-A is enacted to read: 
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I-A. 
Qualifications for licensure. 
A person who meets the good character, 
education, examination and experience requirements of this section is eligible to apply for 
licensure as a certified public accountant pursuant to section 1223 O. 
Sec. 7. 32 MRSA §12228, sub-§3, as repealed and replaced by PL 2007, c. 695, 
Pt. A, §37, is amended to read: 
3. Education requirement. The education requirement for a certificate license is as 
follows: 
B. 
At teast 150 semester hours of education, including a mIn1lnum 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 complete a mInImum 4-year 
bacca:laureate or higher degree required in paragraph B within 120 days following the 
examination is eligible to take the exainination. Grades may not be released, nor may 
credit for the examination or any pali of the examination be given to the applicant 
unless the degree required in paragraph B is completed within 120 days following the 
examination or within such time as the board in its sole discretion maydetermine. 
Sec. 8. 32 MRSA §12228, sub-§10, as repealed and replaced by PL 2007, c. 695, 
Pt. A, §37, is amended to read: 
10. Experience. For initial issuance of a certificate license under this subsection 
section 12230, an applicant ffiatl must demonstrate 2 years of experience under the 
direction of a certified public accountant licensed by any state or territory of the United 
States or equivalent direction, as determined by the board, by a licensed professional in 
another country and must meet the other requirements prescribed by the board by rule. 
The applicant's experience must include the use of accounting or auditing skills, including 
the issuance of repOlis on financial statements, and at least one of the' following: the 
provision of management advisory, financial advisory or consulting services; the 
preparation of tax returns; the furnishing of advice on tax matters; or equivalent activities 
, defined by the board by rule. Board rules adopted purs~Iant to this subsection are routiile 
, technical rules as defined in Title 5, chapter 375, subchapter 2-A. To the extent the 
applicant's experience is asa revenue agent or in a similar position engaged in the 
examination of personal and corporate income tax returns for the Bureau of Revenue 
Services, the applicant receives credit at the rate of 50% toward the experience required 
by this subsection. To the extent the applicant's experience, is as an examiner engaged in 
financial examinations for the Bureau of Insurallce, the applicant receives credit under 
this subsection if that experience meets the following standards: 
' 
A. 
Examinations are performed in conformity with the Examiners' Handbook 
published by the National Association of Insurance Commissioners or its successor or 
~ther organization approved by the board; 
B. 
Working papers prepared by the examiners are in conformity with generally 
accepted aUditing standards and are subject to a review by a supervisor who must be a 
certified public accountant; 
C. Written reports of examination are prepared in conformity with the Examiners' 
Handbook published by the National Association of Insurance Commissioners or its 
successor or other organization approved by the board. All examiners working on the 
examinations must participate in the preparation of the report; 
D. 
Reports of examination are prepa'red in accordance with statutory accounting 
principles. 
All examiners working on the examinations must participate in the 
preparation of the financial statements and corresponding note disclosures; and 
E. All examiners assigned to an examination must participate in the planning of the 
examination and the planning phase conforms to the Examiners' Handbook published 
by the National Association of Insurance Commissioners or its successor or other 
organization approved by the board and generally accepted auditing standards. 
Sec. 9. 32 MRSA §12228, sub-§l1, as repealed and replaced by PL 2007, c. 695, 
Pt. A, §37, is amended to read: 
11. 
Board discretion. 
The members of the board have the full and sole 
responsibility for the detenuination of the qualifications of applicants for the certificate 
license of "certified public accountant." Only persons recommended by the board may be 
granted the certificate license of "certified public accollntant." 
Sec. 10. 32 MRSA §12229, as amended by PL 2007, c. 402, Pt. Z, §12, IS 
repealed. 
Sec. 11. 32 MRSA §12230 is enacted to read: 
§12230. Application for licensure 
1. Licensure. The board shall issue, a license as a certified public accountant to a 
person who submits the application required by the board, pays the fee as set under 
section 12203 and meets the qualifications set forth in section 12228. 
2. Timeliness of application. A person who applies for an initial license more than 4 
years after the person met the qualifications for licensure set forth in section 12228 must 
demonstrate completion of 40 hours of continuing professional education that meets the 
requirements of section 12333 during the year preceding application. 
. 
Sec. 12. 32 MRSA §12231 is enacted to read: 
§12231. Application for licensure on the basis of an out-of-state certificate 
The board shall issue a license to an applicant who holds a certificate or license as a 
certified public accountant issued by another state and who submits the application 
required by the board, pays the fee as set under section 12203 and meets the following 
requirements. 
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1. Meets current requirements. The applicant meets all current requirements in this 
State for issuance of a license at the time the application is made. 
2. Meets past requirements. At the time of the issuance of the applicant's cel1ificate 
in the other state, the applicant met all the requirements then applicable in this State. 
3. Passing grades on examination. The applicant was eligible to take and passed 
. the examination required for is'suance of the certificate with grades that wotIld have been 
passing grades at the time in this State. 
4. Timeliness of application. If the applicant is applying for a first-time license 
more than 4 years after the person obtained a certificate in the other state, the applicant: 
A. 
Completed 40 hours of continuing professional education that meets· the 
f 1 
requirements of section 12233 during the 12 months preceding application; or 
B. Has 4 years of experience in the practice of public accountancy, or its equivalent, 
that meets requirements prescribed by the board by rule after passing the examination 
upon which the certificate is based and within the 10 years preceding the submission 
of the application. 
Sec. 13. 32 MRSA §12232 is enacted to read: 
§12232. Practice without license on the basis of su-bstantial equivalency 
24. 
1. 
Substantial equivalency. 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 licensees of the State and may provide 
professional services in the State withollt the requirement to obtain a license under this 
section or to otherwise notify or register with the board or pay any fee if the individual: 
A. Holds a valid license as a cel1ified public accountaIit 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 Cel1ified Public Accountants; or 
B. Holds a valid license as a certified public accountant from a state that is not in 
substantial equivalence with the cel1ified public accountant licensure requirements 
under paragraph A, 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 Cel1ified Public Accountant Examination and holds a valid 
license issued by any other state prior to January 1, 2012· from the education 
requirement in section 12228, subsection 3, paragraph B. 
In determining substantial equivalence, the board may consult determinations and 
verifications from' a national qualification appraisal service of a national association of 
. state boards of accountancy. 
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2. No notice or other submission required. Notwithstanding any other provision of 
law, an individual who qualifies for licensure under this section 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 subsection 3. 
. 
3. 
Conditions. An individual licensee of another state exerclsmg the practice 
. privilege afforded under this section and the firm that employs that individual must 
consent, as a condition of the grant of the practice privilege: 
A. To the personal and subject matter jurisdiction and discfplinary authority of the 
board; 
. 
B. To comply with the provisions ofthis chapter and the board's rules; 
C. 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 
D. 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. 
4. Additional services. An individual who qualifies for the practice privilege under 
this section may perform any of the services listed in this subsection for any entity with 
its home office in the State as long as the individual does so through a firm that has 
obtained a license issued under section 12252: 
A. A financial statement audit or other engagement to be performed in accordance 
with the Statements on Auditing Standards; 
B. 
An examination of prospective financial information to be performed in 
accordance with Statements on Standards for Attestation Engagements; or 
C. An engagement to be performed in accordance with aUditing standards of the 
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Public Company Accounting Oversight Board, established in' 15 United States Code, 
Section 7211 (2007). 
. 
Sec. 14 .. 32 MRSA §12233 is enacted to read: 
§12233. Continuing education requirements for renewal 
. 31 
An applicant for renewal of a public accountant or certified public accountant license 
must show that requirements of continuing professional education have been fulfilled. 
The board shall establish by rule the number of hours of continuing professional 
education required for renewal. That education must consist of the general kinds and in 
subjects that are specified by the board by rule. The board may provide by rule that 
fulfillment of continuing professional education requirements of other states is accepted 
in lieu of the requirements of this subsection. The board may also provide by rule for 
prorated continuing professional education requirements to be met by applicants whose 
initial licenses were issued less than one year prior to the renewal date. The board may 
prescribe by rule lesser continuing education requirements to be met by applicants for 
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license renewal whose lict::nses laps~d prior to their applications for renewal. Rules 
adopted pursuant to this section are routine technical rules as defined in Title 5, chapter 
375, subchapter 2-A. 
The board, in its discretion, may renew a license despite failure to furnish evidence of 
satisfaction of requirements of continuing professional education only upon condition that 
the applicant follow a particular program or schedule of continuing professional 
education. In issuing rules and individual orders regarding the requirements of continuing 
professional education, the board in its discretion may use and rely upon guidelines and 
pronouncements of recognized educational and professional organizations; may prescribe 
the content, duration and organization of courses;mav take into account any impediments 
to interstate practice of public accountancy that result from differences between the 
requirements and those of other states; and may provide for relaxation or suspension of 
the requirements for applicants wllo cel1ify that they do not intend to engage in the 
practice of pu bl ic accountancy. 
Sec. 15. 32 MRSA §12234 is enacted to read: 
§12234. Expiration; renewal 
1. Licensing period. A Iicerise expires on the date set by the Commissioner of 
Professional and Financial Regulation pursuant to Title 10, section 8003, subsection 4 for 
the licensing period for which the license was issued. A license may be renewed upon 
receipt of an application for renewal and payment of the renewal fee as set under section 
. 12203. 
2. 
Late renewals. 
Licenses may be renewed up to 90 days after the date ·of 
expiration upon payment of a late fee in addition to the renewal fee as set under section 
12203. Any person who submits an application for renewal more than 90 days after the 
expiration date is subject to all requirements governing new applicants under this chapter, 
in addition to fulfilling any continuing education requirements the board considers 
necessary under section 12233. The board in its discretion, giving due consideration to. 
the protection of the public, may waive any requirements if that renewal application is 
made within 2 years from the date of that expiration. 
3. Excused from license fee. Any licensee whose employment by any government 
agency prohibits or precludes the practice of public accountancy in this State, by 
application to the board, may be excused fi'om paying the annual Iiceilse fee during the 
period of that employment. 
Sec. 16. 32 MRS A §12239, as.enacted by PL 1987, c. 489, §2, is amended to 
read: 
§12239. Licenses issued under prior law; public accountants 
Any person who receives received from the board a certificate of his qualifications 
license to practice as E! public accountant, prior to the effective date of this chapter or as 
provided in sElction 12240,shall under prior law may be styled and known as a public 
accountant, and no other persons inay assume to use the abbreviation "PA" or any other 
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words, letters or figures to indicate that the person using the abbreviation is the public 
accountant. 
Sec. 17. 32 MRSA § 12240, as .amended by PL 2007, c. 402, Pt. Z, § § 13 and 14, is 
repe~J~d. __ . 
Sec. 18. 32 MRSA §12241, as amended by PL 2007, c. 402, Pt. Z, § 15, IS 
. 
repealed. 
Sec. 19. 32 MRSA §12242 is enacted to read: 
§12242. Discontinuance of initial licensure as public accountant; renewal of existing 
licenses 
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No new public accountant licenses ·may be issued by the board· on or after the 
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effective date of this section. Holders of existing public accountant licenses may renew 
their licenses. in the same manner as set forth in section 12233 for certified public 
.accountants. Public accountant licenses expire in the same manner as set forth insection 
12234 for certified public accountants. 
Sec. 20. 32 MRSA §12251, as amended by PL 2007, c. 384, §§9 and 10 and c. 
·16 
402, Pt. Z, § 16, is repealed. 
Sec. 21. 32 MRSA § 12252, as amended by PL 2007, c. 384, § § 11 to 13 and c. 
402, Pt. Z, § 17 and .repealed and replaced by c. 695, Pt. A, §38, is further amended to 
read: 
. §12252. Licenses; accounting firms 
1. Licensure. The board shall grant or renew a license to accounting firms that 
make submit the application required by the board, pay the fee as set under section 12203 
and demonstrate their qualifications in accordance with this section. 
. 
A. A firm must hold a license issued under this section if it: 
(I) Has an office in this State performing any of the services described in section 
1220 I, subsection 3-A, paragraphs 8. to D; 
(2) Has an office in this State that uses the title "CPA" or "GPA 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, Cor 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 c1ienthaving its home office in this 
State and may use the title "CPA" or "CPA firm" without a license issued under this 
section only if: 
(1) It qualifies for a firm license pursuant to subsections 3 and 8; and 
(2) It performs such services through an individual with practice privileges under 
section 12251. subsection 4 B 12232. 
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C. A firm that is not subject to the requirements of paragraphs A and B may perform 
professional services other than those described ih section 12201, subsection 3-A 
while using the title "CPA" or "CPA firm" in this State without a license issued under 
this section only if the firm: 
(1) Performs such services through an individual with practice privileges under 
section 12251, subsection 4 B 12232; and 
(2) Has legal authority to perform such services in the state of that individual's 
principal place ofbusiness. 
2. Duration. Licenses are initially issued and renewed for a period of one year, but 
in any event expii'e on June 30th following issuance or renevt'al or on such other date as 
the com~issionei l11a), designate. The board shaH grant or-:cle:FPi a license application no 
later than 60 days after a complete application is filed. In any case when the applicant 
seeks the opportunity to show that issuance or renewal of a license \vas mistakenly denied 
or \vhen the board is not able to determine "'ihether it should be granted or denied, the 
board may issue to the applicant a provisional license, which expires 90 days after its 
issuance or when the board determines whether or not to issue or rene",,' the license for 
',vhich application ',vas made, '.vhichever first occurs~ A license expires on the date set by 
the Commissioner of Professional and Financial Regulation pursuant to Title 10, section 
8003, subsection 4 for the licensing period for which the license was issued. A license 
may be renewed upon receipt of an application for renewal and payment of the renewal 
fee as set under section 12203. 
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Licenses may be renewed up to 90 days after the date of expiration upon payment of a 
late fee in addition to the renewal fee as set under section 12203. Any firm that submits 
an application for renewal more than 90 days after the expiration date is subject to all 
requirements governing new applicants under this chapter. The board in its discretion, 
giving due consideration to the protection· of the public, may waive any requirements if 
that renewal application is made within 2 years from the date of that expiration. 
. 
3. Firm licenses. The following provisions apply to the issuance of firm licenses. 
A 
An applicant for initial issuance or renewal of a license 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 paIiners, officers, shareholders, members or 
managers, belongs to holders of certificates celiified public accountants or public 
accountants who are licensed in a state and that all partners, officers, shareholders; 
members or managers whose principal place of business is in this State and who 
perform professional services in this State hold valid individual licenses issued by the 
board. Firms may includenonlicensee owners in accordance with paragraphB. 
B. 
A certified public accountancy firm or public accountancy firm may include 
nonlicensee owners as long as: . 
(1) 
All nonlicensee owners are individuals who actively participate in the 
certified public accountancy firm or public accountancy firm; 
(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 license 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 ~ 
12232, subsection 4 E, paragraph 
A 1 who is responsible for the proper registration licensure of the firm and 
identifies that individual who is a licensee to the board. 
4. Office licensed. An applicant for initial issuance or renewal of a license under 
this section shall register license each office of the firm within this State with the board, 
pay the fee as set under section 12203 and show that each such office is under the charge 
of a person holding a valid license issued under section ~ 
12230 or 12231 or the f! 
corresponding provision of prior law or the laws of another state. 
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6. Change in composition. Applicants for initial issuance or rene'.val of licenses 
under this section A licensed firm shall in their application list all states in ';."hich they 
have applied for, or hold licenses to, practice public accollntancy· and· each holder of, or 
applicant for, a license under this section shall notify the board in writing, within 30 days 
after its occurrence, of any change in the identities of partners, officers or shareholders 
who work regularly within this State, any change in the. number or location of offices 
within "this State, or any change in the identity of the persons in charge of tho~e offices 
and anv issuance. denial. revocation or susoension of a license b .... an .... other state. 
. 
8. Peer review for certified public accountancy firms. As a condition to the 
granting or renewal of licenses to certified public ~ccountancy firms, each applicant that 
provides a defined service other than compilations must successfully patticipate in an 
approved peer review program. 
Participation' in such a program is governed bYJhe 
following. 
. 
A. A peer review must be completed within 18 months after the initial granting of 
the license. . The firm must undergo a peer review every 3 years for as long as it 
provides a defined service other than compilations. 
B. A certified public accountancy firm that does not provide a defined service other 
than compilations is not required to undergo a peer review if the firm annually 
confirms in writing to the board that it does not provide a defined service other than 
compilations. 
A certified public accountancy firm that subsequently· provides a 
defined service other than compilations must undergo a peer review within 18 months 
after the fiscal year end of the first defined services engagement other than 
compilations that it accepts. 
The board is authorized to adopt rules to carry out the intent Qf this subsection. Rules 
adopted pursuant to this subsection are routine technical rules pursuant to Title 5, chapter 
375, subchapter 2-A. 
Sec. 22. 32 MRSA §12263, as amended by PL 2007, c. 402, Pt. Z, § 18, is further 
amended to read: 
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§12263. Appointment of commissioner ,as.agent 
Application by a person or a firm not a resident of this State for a certificate initial 
,licensure or renewal of a license under section 12228 or 12240 or a license under section 
12251 or 12252 this chapter constitutes appointment of the commissioner as the 
applicant's agent upon whom process may be served in any action or proceeding against 
the applicant arising out of any transaction or operation connected with or incident to the 
practice of public accountancy by the applicant within this State. 
Sec. 23. 32 MRSA §12273-A, sub-§2, as enacted by PL 2007, c. 402, Pt. Z, §20, 
is amended t.o read: 
2. Failure to maintain compliance. Failure, on the part of an applicant or a licensee 
under section 12251 or 12252 to maintain compliance with the requirements for issuance 
or renewal of that license or to report the changes to the board under section 12251. 
subsection 6 or required by sectiOn 12252, subsection 6; 
Sec. 24. 32 MRSA §12273-A, sub-§5, as enacted by PL 2007, c. 402, Pt. Z, §20, 
is amended to read: 
5. Fraud. Performance of any fraudulent act while holding a certificate or license 
issued under this chapter or a certificate or license issued under prior law; and 
Sec. 25. 32 MRSA §12274, sub-§2, as amended by PL 2007, c. 695, Pt. C, § 18, 
is further amended to read: 
. 2. Review. The board may review the publicly available professional work of 
licensees on a general and random basis, without any requirement of a formal compla:int 
or suspicion of impropriety on the part of any particular licensee.· If, as a result of such 
review, the board discovers reasonable grounds for a more specific investigation, the 
board may proceed under section 12273-A or Title 10, section 8003-A subsection 2. 
Sec. 26. 32 MRSA §12274, suh-§3,as amended by PL 2007, c. 695, Pt. B, §15, 
is further amended to read: 
3. Discipline. In any case when the board renders a decision imposing discipline 
against a licensee under this section and section 12273 A, the board shall examine its 
records to determine whether the licensee holds a certificate or a license in any other 
state,; and, if so, the board shall notify the board of accountancy of that other state of its 
decision by mail within 45 days of rendering the decision. The board may also furnish 
information relating to proceedings resulting in disciplinary action to other public 
authorities and to private professional organizations having a disciplinary interest in the 
licensee. 
. 
Sec. 27. 32 MRS A §12274, sub-§4, ~A, as amended by PL 2007, c. 402, Pt. Z, 
§23, is further amended to read: 
A. In any case when the board has suspended or revoked a certificate or a license or 
refused to renew a license, the board may modifY the suspension or reissue the 
certificate or license upon apolication in 'Nriting bv the person or firm affected aHd 
. 
. 26 
for good cause shown may apply in writing to the board for relief. For good cause 
shown, the board may modify the suspension or reissue the license. 
. Sec. 28 .. 32 MRSA §12274, sub-§4,'\fC, as amended by PL 2007, c. 402, Pt. Z, 
. 
. 
§23, is. further amended to read: 
C. Before reissuing or terminating the suspension of a certificate or license under this 
section, and as acondition for reissuance or termination of suspension, the board may 
require the applicant to show successful completion of specified continuing 
professional education. The board may make the reinstatement of a certificate or 
license conditional and subject to satisfactory completion of a quality review 
conducted in such fashion as the board may specify. 
Sec. 29. 32 MRSA §12275, sub-§l, as amended by PL 2007, c. 402, Pt. Z, §24, 
is further amended t6 read:-
1. Issuance of reports. No .person or firni not holding a valid license issued under 
, 
. 
section 12251. or 12252 this, chapter may issue a report, including reviews and 
compilations, on financial statements of aDY other person, firm, organization or 
governmental unit. This prohibition does not apply to the foliowing: 
A. An officer, partner or employee of any finn or organization affixing that person's 
signature to any statement or report in reference to the fillancial affairs of that firm or 
organization with any wording designating the position, title or office that that person 
holds in the organization; 
. 
B. Any act of a public official or employee in the performance of that person's duties 
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C. The performance by any person of other services involving:the use of accounting 
skills, including management advisory or consulting services, the preparation of tax 
returns, the furnishing of advice on tax matters and the preparation of financial 
statements withOlit the issuance of reports . 
Sec. 30. 32 MRSA §12275, sub-§2, as enacted by PL 1987, c. 489, §2, IS 
amended to read: 
2. Misuse of title; individual; certified public accountants. No person not holding 
a valid certificate issued under section 12227, shall licensed 'as a celtified public 
accountant under this chapter may use or assuine the tit,Ie of "certified public accountant," 
the abbreviation "CPA" or any other title, designation, words, letters, abbreviation, sign, 
card or device indicating that the person is a certified public accountant. 
Sec. 31. 32 MRS A §12275, sub-§3, ~, as amended by PL 1999, c. 619, §4, is 
fUlther amended to read: 
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B. A simple majority of all pmtners, officers, shareholders, members or managers of 
the firm hold certificates are certified public accountants licensed in a state. 
Sec. 32. -32 MRSA §12275, sub-§4, as amended by PL,2007, c. 402, Pt. Z, §24, 
is fulther amended to read: 
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4. Misuse of title; public ~ccountant. No person may assume or use the title or 
designation "public accountant," the abbreviation "PA" or any other title, designation, 
words, letters, abbreviation, sign, card or device indicating that the person is a public 
accountant unless that person holds a valid public accountant license issued under former 
sectiori 12251. 
Sec. 33. 32 MRSA §12275, sub-§6, as amended by PL 2007, c. 402, Pt. Z; §24, 
is fU1iher amended to read: 
6. Similar titles prohibited. No person or firm not holding a valid license issued 
under section 12251 or 12252 this chapter may assume or use the title or designation 
"certified 
accountant," 
"chartered 
accountant," 
"enrolled 
accountant,". "licensed 
accountant," "registered accountant;" "accredited accountant" or any other title or 
designation likely to be confused with the titles "certified public accountant," "public 
accountant" or use any of the abbreviations "CA," "LA," "RA," "AA" or similar 
abbreviations likely to be confused with the abbreviations "CPA" or "PA," provided that 
a holder of a certificate who does not also hold a license may use the titles pertaining to 
that celiificate in any manner not prohibited by rules adopted by the board under section 
12214, subsection 4. 
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Sec~ 34. 32 MRSA §12275, sub":§7, as amended by PL 2007, C. 402, Pt. Z, §24, 
is fUliher amended to read: 
7. Similar designation prohibited. No person or firm not holding a valid license 
issued under section 12251 01' 12252 this chapter may assume or use any title or 
designation that includes the words "auditor" or "auditing'i in connection with any other 
language, including the language of a report, that implies that the person or firm holds 
such a license or has special competence as an auditor, provided except that this 
subsection does not prohibit any officer, partner or employee of any firm or organization 
from affixing that person's signature to any statement in reference to the financial affairs 
of that firm or organization with any wording designating the position, title or office that 
that person holds in the firm or organization or prohibit any act of a public official or 
employee in the pelformance of that person's duties. 
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Sec. 35. 32 MRSA §12275, sub-§8, as amended by PL 2007, c. 402, Pt. Z, §24, 
is fUliher amended to read: 
8. 
Unauthorized practice. No person holding a certificate may engage in the 
practice of public accountancy, unless that person also holds a valid license issued under 
section 12251 th is chapter. 
Sec. 36. 32 MRSA §12275, sub-§l1, as amended by PL 2007, c. 402, Pt. Z, §24, 
is fUliher amended to read: 
11. Employees. Nothing in this chapter prohibits any person, not a certified public 
accountant or public accountant, from serving as an employee of, or an assistant to, a 
certified public accountant, public accountant, a firm of certified public accountants or of 
public accountants holding a license issued under section 12251 or 12252 this chapter, 
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provided that the employee or assistant may not issue any accounting or financial 
statements over the employee's or assistant's name. 
Sec. 37. 32_MRSA§12275, sub-§14, as enacted by PL 2007, c.384, § 14, IS 
. amended to read: 
14. Substantial equivalency. For purposes of this section: 
A. As-aR An individual exercising permit privileges in the State practicing as a 
celtified public accountant without a licenseon the basis of substantial equivalency 
pursuant to section 12251, subsection 4 B 12232 and complying with the restrictions 
on the scope of such privileges under subsection. 4 B a practice is equivalent to an 
individual holding a certificate under section 12227 and to an individual holding a 
permit to practice licensed as a celiified public accountant under section..J-2.2.§-1. 12230 
or 12231 or a 'corresponding provision 'of prior law, and each reference in this section 
to certificate and permit holders a licensed certified public accountant is deemed to 
include, on an equal basis, individuals mcercising such privileges such an individual; 
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B. A firm in compliance with section 12252, subsection 1 must,for the purposes of 
this section, be deemed to hold a valid permit to practice license issued under section 
12252; and 
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C. Notwithstanding any other provision of this section, it is not a violation of this 
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section if a firm that does not hold a valid permit license 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. 
Sec. 38. Maine R.evised Statutes headnote amended; revision clause. In 
the Maine Revised Statutes, Title 32, chapter 113,subchapter 3, in the' subchapter 
headnote, the words "registration of certified public accountants" are amended to read 
"licensure of certified public accountants" and the Revisor of Statutes shall implement 
this revision when updating, publishing or republishing the statutes. 
Sec. 39. Maine Revised Statutes headnote amended; revision clause. In 
the Maine Revised Statutes, Title '32; chapter 113,subchapter 4, in the subchapter 
headnote, the words "registration of public accountants" are amended to read "licensure 
I 
of public accountants" and the Revisor of Statutes shall implem~nt this revision wheil 
updating, publishing or republishing the statutes. 
Sec. 40. Maine Revised Statutes headinote amended; revision. clause. In 
the Maine Revised Statutes, Title 32, chapter 113, subchapter 5, in the subchapter 
headnote, the word "licenses" is amended to read "licensure of accounting firms" and the 
Revisor of Statutes sluill implement this revision when updating, publishing or 
republishing the statutes. 
Sec. 41. Maine Revised Statutes headnote amended; revision clause. In 
the Maine Revised Statutes, Title 32, chapter 113, subchapter 7, in the subchapter 
headnote, the words "enforcement against holders of certificates and licenses" are 
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amended to read "enforcement against licensees" and the Revisor of Statutes shall 
implement this revision when updating, publishing or republishing the statutes. 
SUMMARY 
Current law requires a 2-step process for the licensure. of certified public accountants. 
An applicant who qualifies for licensure first applies for and is issued a certificate. The 
certificate does not authorize the holder to practice. The certificate holder then files a 2nd 
application for a permit to practice, which is the actual license. This bill streamlines the 
licensing process by compacting the certificate phase and permit phase into one 
application for licensure. Celtificates will no longer be issued .. 
The Board of Accountancy licenses certified public accountants, public accountants 
and accounting firms. Applicants for the celtified public accountarit or public accountant 
credential must pass the same examination, but the education and 
yxperh~nce 
requirements are more rigorous for celiified public. accountants. Currently, the board 
licenses 2,056 certified public accountants and 12 public accountants. New public 
accountants have not been licensed since 1992. This bill eliminates the public accountant 
license category prospectively. Current public accountants will be able to renew 
indefinitely. 
This bill removes specific hour requirements of continuing professional education 
requirements for accountants and instead authorizes the board to establish by rule the 
nuinber of hours required for renewal.