CPA Practice Mobility Bill On its Way to Governor Rell for Signature
A bill that will establish “Practice Mobility” for Certified Public Accountants in Connecticut is on its way to Governor M. Jodi Rell for signature into law. Senate Bill No. 684, “An Act Concerning the Practice and Privileges of Certified Public Accountants” passed 148-0 on April 29, 2008 in the state House of Representatives after passing unanimously in the state Senate on April 24.
Specifically, Senate Bill 684 will permit out-of-state CPAs to practice in Connecticut under what is termed “No Notice, No Fee, No Escape.” That means a CPA could enter Connecticut without having to notify our State Board of Accountancy, and without paying a fee. If that CPA were accused of violating local accounting statutes, the Connecticut State Board of Accountancy would report the alleged violation to the visiting CPA’s home state regulators – hence the term “no escape.”
This is a “driver’s license” approach to regulation. Just as a Connecticut driver’s license allows a resident of our state to drive in any state, mobility enables the CPA to practice in any state with reciprocal law. Earlier this year, the Connecticut State Board of Accountancy voted unanimously in favor of practice mobility, so the profession and its regulators are in harmony on this issue.
The key to practice mobility is for all states to adopt it. That is happening - quickly. In 2005, only three states had practice mobility. Today 18 states have mobility, and, in addition to Connecticut, another four states have legislation awaiting gubernatorial approval. Eleven additional states have legislation pending.
There are safeguards. Practice mobility would only extend to states deemed “substantially equivalent” – states with the same high accountancy standards as Connecticut.
Why is practice mobility is important? Many clients have operations in other states. The Internet makes practicing across state lines commonplace. Because CPAs are regulated state-by-state, the profession needs a system that will facilitate serving clients around the country while upholding the rules by which CPAs must practice. Practice mobility accomplishes both goals.
Frequently when a CPA attempts to practice across state lines, he or she must register, pay a fee, and endure indeterminate delays of paperwork processing. Opportunities are missed, client needs go wanting, and the public is not served. CPA practice mobility is a business-friendly, 21st century regulatory model.
The CSCPA extends its appreciation to the 2008 Connecticut General Assembly for its leadership in recognizing the importance of CPA practice mobility and for sending Senate Bill 684 to the Governor for signature.
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