An Act To Enable Out-of-state Certified Public Accountancy Firms To Provide Services in Maine on the Basis of Substantial Equivalency
Maine Legislature, Session 130, LD 0171
Committee: Innovation, Development, Economic Advancement and Business
Sponsors: MILLETT, BAILEY, HASENFUS, PEBWORTH, ROBERTS
Amends: 32 MRSA §12252, 32 MRSA §12253

Legislative Document
No. 171
H.P. 124
House of Representatives, January 25, 2021
An Act To Enable Out-of-state Certified Public Accountancy Firms 
To Provide Services in Maine on the Basis of Substantial 
Equivalency
Received by the Clerk of the House on January 21, 2021.  Referred to the Committee on 
Innovation, Development, Economic Advancement and Business pursuant to Joint Rule 308.2 
and ordered printed pursuant to Joint Rule 401.
ROBERT B. HUNT
Clerk
Presented by Representative MILLETT of Cape Elizabeth.
Cosponsored by Representatives: BAILEY of Gorham, HASENFUS of Readfield, 
PEBWORTH of Blue Hill, ROBERTS of South Berwick.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  32 MRSA §12252, sub-§1, as amended by PL 2015, c. 110, §8, is further 
amended to read:
1.  Licensure.  The board shall grant or renew a license to accounting firms that 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:
(1)  Has an office in this State performing any of the services described in section 
12201, subsection 3‑A, paragraphs A to D;
(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 and does not meet the requirements of 
section 12253 but performs any of the services described in section 12201, 
subsection 3‑A, paragraphs paragraph 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 or F for a client having 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 it performs 
such services through an individual with practice privileges under section 12232; 
and or
(2)  It performs such services through an individual with practice privileges under 
section 12232.
(3)  It meets the requirements of section 12253.
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 license issued under this 
section only if the firm meets the requirements of section 12253 or:
(1)  Performs such services through an individual with practice privileges under 
section 12232; and
(2)  Has legal authority to perform such services in the state of that individual's 
principal place of business.
Sec. 2.  32 MRSA §12253 is enacted to read:
§12253.  Accountancy firm practice without license on the basis of substantial 
equivalency
1.  Substantial equivalency.  A firm with a principal place of business 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 without the requirement to obtain a license under this section or to otherwise 
notify or register with the board or pay any fee if the firm:
A.  Holds a valid license as a certified public accountancy firm from a state that the 
board has verified to be in substantial equivalence with the certified public accountancy 
firm licensure requirements of a national association of state boards of accountancy 
and standards promulgated by the American Institute of Certified Public Accountants; 
or 
B.  Holds a valid license as a certified public accountancy firm from a state that is not 
in substantial equivalence with the certified public accountancy firm requirements 
under paragraph A, but the board determines that the certified public accountancy 
firm's qualifications are substantially equivalent to the certified public accountancy 
firm licensure requirements of a national association of state boards of accountancy 
and standards promulgated by the American Institute of Certified Public Accountants. 
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.
2.  No notice or other submission required.  Notwithstanding any provision of law 
to the contrary, a firm that is eligible to practice in this State without a license in accordance 
with the requirements of this section may offer or render professional services in this State, 
whether in person or by mail, telephone or electronic means, without providing notice or 
making any submission to the board. Such a firm is subject to subsection 3.
3.  Conditions.  A licensee of another state exercising the practice privilege afforded 
under this section must consent, as a condition of the grant of the practice privilege:
A.  To the personal and subject matter jurisdiction and disciplinary authority of the 
board;
B. To comply with the provisions of this chapter and the board's rules; and
C. To the stipulation that, in the event the license from the state of the firm's principal 
place of business is no longer valid, the firm will cease offering or rendering 
professional services in the State.
SUMMARY
This bill establishes parity in license mobility between certified public accountancy 
firms and individual certified public accountants by enabling out-of-state certified public 
accountancy firms to provide services in Maine on the basis of substantial equivalency in 
the same manner as individual certified public accountants.  A certified public accountancy 
firm providing services in Maine on the basis of substantial equivalency need not provide 
notice or register with the Board of Accountancy but must follow the requirements of 
Maine law and the board's rules.