Chapter 402
S.P. 659 - L.D. 1842
PART Z
Sec. Z-1. 32 MRSA §12201, sub-§6, as enacted by PL 1987, c. 489, §2, is amended to read:
6. Licensee.
"Licensee" means a person who holds a valid permit license issued by the board under section 12251, or a firm which that holds a valid permit license issued by the board under section 12252.
Sec. Z-2. 32 MRSA §12201, sub-§7, as enacted by PL 1987, c. 489, §2, is repealed.
Sec. Z-3. 32 MRSA §12201, sub-§10, as enacted by PL 1987, c. 489, §2, is amended to read:
10. Report on financial statements.
"Report on financial statements" means any form of language which that:A. States or implies assurance as to the reliability of any financial statements; and
B. States or implies that an audit, review or compilation has been performed.
Report on financial statements includes disclaimers of opinions when the disclaimer implies positive assurance as to the reliability of the financial statements. Language which that meets this definition includes language asserting or implying that the person has given an opinion upon financial statements or has reviewed or made a compilation of financial statements in accordance with the appropriate standards promulgated by the American Institute of Certified Public Accountants or its successor or other organization approved by the board as adopted by the board by rule or that the person has the capabilities to comply with those standards.
Sec. Z-4. 32 MRSA §12203 is enacted to read:
The Director of the Office of Licensing and Registration may establish by rule fees for purposes authorized under this chapter in amounts that are reasonable and necessary for their respective purposes, except that the fee for any one purpose may not exceed $100. Rules adopted pursuant to this section are routine technical rules pursuant to Title 5, chapter 375, subchapter 2-A.
Sec. Z-5. 32 MRSA §12213, as amended by PL 1993, c. 600, Pt. A, §264, is further amended to read:
The Board of Accountancy, as established by Title 5, section 12004-A, subsection 1, within the Department of Professional and Financial Regulation department consists of 5 members appointed by the Governor. Each member of the board must be a citizen of the United States and a resident of this State. Three members must be holders of certificates issued under section 12227 and of currently valid permits licenses issued under section 12251 and must have had, as their principal occupation, active practice as certified public accountants for at least the 5 preceding years. One member must hold a certificate issued under section 12239 and a currently valid permit license issued under section 12251 and must have had, as a principal occupation, active practice as a noncertified public accountant for at least the 5 preceding years. One member of the board must be a representative of the 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 60 8009. The Governor may remove a member of the board for cause.
Sec. Z-6. 32 MRSA §12214, sub-§1, as amended by PL 1989, c. 483, Pt. A, §53, is repealed and the following enacted in its place:
1. Meetings; chair; quorum.
The board shall meet at least once a year to conduct its business and to elect a chair, who must be a certified public accountant. Additional meetings must be held as necessary to conduct the business of the board and may be convened at the call of the chair or a majority of the board members. Three members of the board constitute a quorum.
Sec. Z-7. 32 MRSA §12214, sub-§6, as enacted by PL 1987, c. 489, §2, is repealed.
Sec. Z-8. 32 MRSA §12214, sub-§7, as enacted by PL 1987, c. 489, §2, is repealed.
Sec. Z-9. 32 MRSA §12214, sub-§9, as amended by PL 1995, c. 502, Pt. H, §42, is repealed.
Sec. Z-10. 32 MRSA §12214, sub-§11, as enacted by PL 1987, c. 489, §2, is repealed.
Sec. Z-11. 32 MRSA §12228, as amended by PL 2005, c. 347, Pt. D, §§1 to 3, 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 as set under section 12203, except that no certificate may be granted to a person who has been issued a certificate by another state.
2. Good character.
"Good character" for the purposes of this section means lack of a history of dishonest or felonious acts. The board may refuse to grant a certificate on the ground of failure to satisfy this requirement only if there is a substantial connection between the lack of good character of the applicant and the professional responsibilities of a licensee and if the finding by the board of lack of good character is supported by clear and convincing evidence. When an applicant is found to be unqualified for a certificate because of a lack of good character, the board shall furnish the applicant a statement containing the findings of the board, a complete record of the evidence upon which the determination was based and a notice of the applicant's right of appeal under the Maine Administrative Procedure Act, Title 5, chapter 375.
3. Education requirement.
The education requirement for a certificate, which must be met no later than 120 days after an applicant sits for the examination prescribed in subsection 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 education requirement 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.
4. Examination.
An applicant is required to pass an examination administered approved by the board to test the applicant's knowledge of the subjects of accounting and auditing and such other related subjects as the board may specify by rule in order to qualify for a certificate. Rules adopted pursuant to this section are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A. The board may make the use of all or any part of the Uniform Certified Public Accountant Examination and the Advisory Grading Service of the American Institute of Certified Public Accountants or any other examination approved by the board and may contract with 3rd parties to perform such administrative services with respect to the examination as it considers appropriate to assist it in performing its duties under this section.
6. Examination; credits.
An applicant shall must be given credit for any and all parts of an examination passed in another state if that credit would have been given, under then applicable requirements, if the applicant had taken the examination in this State.
7. Waiver.
The board may, in particular cases, waive or defer any of the requirements of subsection 6 regarding the circumstances in which the various sections of the examination must be passed upon a showing that, by reason of circumstances beyond the applicant's control, the applicant was unable to meet that requirement.
8. Administration fee.
The board may charge, or provide for a 3rd party administering the examination to charge, each applicant a fee in an amount prescribed by the board by rule for each section of the examination or reexamination taken by the applicant.
9. Out-of-state examination.
The board may charge a fee in an amount prescribed by the board by rule for granting of the certificate of "certified public accountant" to any An applicant who has been given credit for any or all parts of an examination passed in another state as provided in section 12228, subsection 6 must pay the fee as set under section 12203.
10. Experience.
For initial issuance of a certificate under this subsection, an applicant shall 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 reports 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 pursuant to this subsection are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A. To the extent the applicant's experience is as a 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 Insurance, 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 other 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 prepared 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.
11. Board discretion.
The members of the board have the full and sole responsibility for the determination of the qualifications of applicants for the certificate of "certified public accountant." Only persons recommended by the board shall be granted the certificate of "certified public accountant."
12. Substantial equivalency.
The board shall determine the standards for substantial equivalency. The board may rely upon a determination by a qualification appraisal service offered by a national association of state boards of accountancy that an applicant meets the requirements for substantial equivalency.
13. Foreign designation.
The board shall issue a certificate to a holder of a substantially equivalent foreign designation as long as:A. The foreign authority that granted the designation makes similar provisions to allow a person who holds a valid certificate issued by this State to obtain that foreign authority's comparable designation;
B.
The foreign designation:
(1) Was duly issued by a foreign authority that regulates the practice of public accountancy, and the foreign designation has not expired or been revoked or suspended;
(2) Entitles the holder to issue reports upon financial statements; and
(3) Was issued upon the basis of education, examination and experience requirements established by the foreign authority or by law; and
C.
The applicant:
(1) Received the foreign designation, which is based on education and examination standards substantially equivalent to those in effect in this State at the time the foreign designation was granted;
(2) Completed an experience requirement, substantially equivalent to the requirement set out in subsection 10 in the jurisdiction that granted the foreign designation or has completed 4 years of professional experience in this State or meets equivalent requirements prescribed by the board by rule within the 10 years immediately preceding the application; and
(3) Passed a uniform qualifying examination on national standards and an examination on the laws, regulations and code of ethical conduct in effect in this State acceptable to the board.
14. Action by foreign jurisdiction.
An applicant under subsection 13 shall in an application for a certificate list all jurisdictions, foreign and domestic, in which the applicant has applied for or holds a designation to practice public accountancy. Each holder of a certificate issued under subsection 13 shall notify the board in writing, within 30 days after its occurrence, of any issuance, denial, revocation or suspension of a designation or commencement of a disciplinary or enforcement action by any jurisdiction.
15. Authority.
The board has the sole authority to interpret the application of subsections 13 and 14.
Sec. Z-12. 32 MRSA §12229, as enacted by PL 1999, c. 245, §6, is amended to read:
A licensee of this State offering or rendering services or using the title, certified public account accountant, in another state is required to register in that state and is subject to disciplinary action in this State for an act committed in another state for which the licensee would be subject to discipline in the other state. Notwithstanding section 12227 12228, subsection 1, the board must investigate any complaint made by a board of accountancy of another state.
Sec. Z-13. 32 MRSA §12240, sub-§1, as amended by PL 1989, c. 450, §50, is further amended to read:
1. Certificate grants.
The board shall grant the certificate of "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, subsections 2 to 8 and pays the fees as set under section 12203, except that no certificate may be granted to a person who has been issued a certificate by another state.
Sec. Z-14. 32 MRSA §12240, sub-§4, as repealed and replaced by PL 2003, c. 204, Pt. E, §4, is further amended to read:
4. Examination.
An applicant is required to pass an examination administered approved by the board to test the applicant's knowledge of the subjects of accounting and auditing and such other related subjects as the board may specify by rule in order to be qualified for a certificate. Rules adopted by the board under this section are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A. The board may contract with 3rd parties to perform those administrative services with respect to the examination as it considers appropriate to assist it in performing its duties under this section.
Sec. Z-15. 32 MRSA §12241, as enacted by PL 1987, c. 489, §2, is further amended to read:
The noncertified member or members of the board may, in their discretion, waive the examination and upon payment of a the fee not to exceed $50 as set under section 12203, issue a certificate of public accountant under section 12240 to any person who is the holder of a similar certificate or license issued under the laws of another state or foreign government, which is then in full force and effect, provided that the requirements in the state or foreign government which that has granted the certificate or license to the applicant are, in the opinion of the noncertified member or members of the board, equivalent to those of this State.
Sec. Z-16. 32 MRSA §12251, as amended by PL 2005, c. 347, Pt. D, §4, is further amended to read:
1. Licensure.
The board shall grant or renew permits to practice public accountancy a license to persons who make application , pay the fee as set under section 12203 and demonstrate their qualifications in accordance with this section. The board shall grant or deny 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 was mistakenly denied or when the board is not able to determine whether 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 renew the license for which application was made, whichever first occurs.
2. Duration.
Permits shall be initially issued and renewed for a period of one year, but in any event shall expire on the June 30th following issuance or renewal. Applications for those permits shall be made in that form, and in the case of applications for renewal, between such dates, as the board shall by rule specify, and the board shall grant or deny any such application no later than 60 days after the application is filed in proper form. In any case where the applicant seeks the opportunity to show that issuance or renewal of a permit was mistakenly denied or where the board is not able to determine whether it should be granted or denied the board may issue to the applicant a provisional permit, which shall expire 90 days after its issuance or when the board determines whether or not to issue or renew the permit for which application was made, whichever shall first occur.
3. Requirements.
An applicant for initial issuance of a permit license under this section shall show:A. That he the applicant holds a valid certificate; and
B. If the applicant's certificate was issued more than 4 years prior to his the applicant's application for issuance of an initial permit license under this section, that he the applicant has fulfilled the requirements of continuing professional education applicable under subsection 5 if he the applicant had secured his the applicant's initial permit license within 4 years of issuance of his the applicant's certificate and was now applying under subsection 5 for renewal of that permit license.
4. Out-of-state certificates.
The board shall issue a permit license to a holder of a certificate as a certified public accountant or a public accountant issued by another state upon showing that:B.
The applicant:
(1) Meets all current requirements in this State for issuance of a certificate at the time the application is made;
(2) At the time of the issuance of the applicant's certificate in the other state, met all the requirements then applicable in this State; and
(4) Was eligible to take and passed the examination required for issuance of the certificate with grades that would have been passing grades at the time in this State;
C. The applicant meets the requirements of subsection 3, paragraph B; or
D. The applicant had 4 years of experience in the practice of public accountancy or equivalent meeting 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.
4-A. Out-of-state certificates; certified public accountants; substantial equivalency.
The board shall issue a permit license to a holder of a certificate as a certified public accountant issued by another state if the applicant shows that the applicant:A. Is eligible under the substantial equivalency standard authorized pursuant to section 12228, subsection 12. The holder of a permit license issued under this section may engage in the practice of public accountancy only in a firm that holds a permit license issued under section 12252; and
B.
Consents, as a condition of the granting of this privilege:
(1) To the jurisdiction of the board;
(2) To comply with this chapter and the board's rules; and
(3) To the appointment of the state board that issued the applicant's certificate as the applicant's agent upon whom process may be served in any action or proceeding by this board against the applicant.
5. Renewal.
An applicant for renewal of a permit license under this section shall show that requirements of continuing professional education consisting of not less than 20 hours in each one-year period and not less than 120 hours in any 3-year period have been fulfilled. The board shall establish by rule the number of hours of continuing professional education required in each one-year period and 3-year period. 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 will be 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 permits licenses were issued less than one year prior to the renewal date. The board may prescribe by rule special lesser continuing education requirements to be met by applicants for permit license renewal whose prior permits licenses lapsed prior to their applications for renewal. The board, in its discretion, may renew a permit license to practice 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 in respect of 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 for content, duration and organization of courses; may take into account any impediments to interstate practice of public accountancy that may result from differences in those requirements in other states; and may provide for relaxation or suspension of those requirements in regard to applicants who certify that they do not intend to engage in the practice of public accountancy.
6. Prior certification.
Applicants for initial issuance or renewal of permits licenses under this section shall list in their applications all states in which they have applied for or hold certificates or permits licenses and each holder of or applicant for a permit license under this section shall notify the board in writing, within 30 days after its occurrence, of any issuance, denial, revocation or suspension of a certificate or permit license by another state.
7. Fee.
The board shall charge a fee for each application for initial issuance or renewal of a permit under this section in an amount prescribed by the board by rule.
8. Adjudicatory hearing.
The board shall not refuse to renew a permit for any reason other than failure to pay a required fee, unless it has afforded the licensee an opportunity for an adjudicatory hearing. The board shall hold an adjudicatory hearing at the written request of any person who is denied a certificate or permit without a hearing for any reason other than failure to pay a required fee, provided that the request for hearing is received by the board within 30 days of the applicant's receipt of written notice of the denial of his application, the reasons for the denial of his application and his right to request a hearing.
9. Expiration.
All permits shall expire on June 30th of each year or on such other date as the Licenses are initially issued and renewed for a period of one year, but in any event expire on June 30th following issuance or renewal or on such other date as the commissioner determines may designate. Notices of expiration shall be mailed to each permitee's last known address at least 30 days in advance of the expiration of his permit. The notice shall include any requests for information necessary for renewal. Permits Licenses may be renewed up to 90 days after the date of expiration upon payment of a late fee of $10 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 shall be is subject to all requirements governing new applicants under this chapter, in addition to fulfilling any continuing educational requirements the board may deem considers necessary. The board in its discretion, giving due consideration to the protection of the public, may waive any or all requirements if that renewal application is made within 2 years from the date of that expiration. Any certificate holder whose employment by any government agency prohibits or precludes his the practice of public accountancy in this State, by application to the board, shall may be excused from paying the annual permit license fee during the period of that employment.
10. Certificates in other states.
An applicant for initial issuance or renewal of a permit license under this section shall in the applicant's application list all states in which the applicant has applied for or holds a certificate , or license or permit and list any past denial, revocation or suspension of a certificate , or license or permit. Each holder of or applicant for a permit license under this section shall notify the board in writing, within 30 days after its occurrence, of any issuance, denial, revocation or suspension of a certificate , or license or permit by another state.
Sec. Z-17. 32 MRSA §12252, as amended by PL 2005, c. 347, Pt. D, §5, is further amended to read:
1. Licensure.
The board shall grant or renew permits to practice public accountancy a license to firms that make application , pay the fee as set under section 12203 and demonstrate their qualifications in accordance with this section.
2. Duration.
Permits shall be Licenses are initially issued and renewed for a period of one year, but in any event , expiring expire on June 30th following issuance or renewal or on such other date as the commissioner may designate. Applications for permits shall be made in that form and, in the case of applications for renewal, between such dates as the board may by rule specify and the board shall grant or deny any such application no later than 60 days after the application is filed in proper form. The board shall grant or deny 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 permit license was mistakenly denied or when the board is not able to determine whether it should be granted or denied, the board may issue to the applicant a provisional permit license, which shall expire expires 90 days after its issuance or when the board determines whether or not to issue or renew the permit license for which application was made, whichever shall first occur occurs.
3. Firm licenses.
The following provisions apply to the issuance of firm permits licenses.A. An applicant for initial issuance or renewal of a permit to practice 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 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 or who perform professional services in this State hold valid individual permits licenses 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 nonlicensee owners as long as:
(1) All nonlicensee owners are individuals who actively participate in the certified public accountancy firm or public accountancy firm; and
(2) The firm complies with such other requirements as the board may impose by rule.
4. Office registered.
An applicant for initial issuance or renewal of a permit to practice license under this section shall be is required to register each office of the firm within this State with the board , pay the fee as set under section 12203 and to show that each such office is under the charge of a person holding a valid permit to practice, license issued under section 12251 or the corresponding provision of prior law.
5. Fee.
The board may charge a fee for each application for initial issuance or renewal of a permit under this section in an amount prescribed by the board by rule.
6. Out-of-state licenses.
Applicants for initial issuance or renewal of permits licenses under this section shall in their application list all states in which they have applied for, or hold permits licenses to, practice public accountancy and each holder of, or applicant for, a permit 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, any change in the identity of the persons in charge of those offices and any issuance, denial, revocation or suspension of a permit license by any other state.
7. Adjudicatory hearing.
The board shall not refuse to renew a permit for any reason other than failure to pay a required fee, unless it has afforded the applicant an opportunity for an adjudicatory hearing. The board shall hold an adjudicatory hearing at the written request of any applicant who is denied a permit without a hearing for any reason other than failure to pay a required fee, provided that the request for hearing is received by the board within 30 days of the applicant's receipt of written notice of the denial of his application, the reasons for the denial of his application and his right to request a hearing.
8. Peer review for certified public accountancy firms.
As a condition to the granting or renewal of permits licenses to certified public accountancy firms, each applicant that provides a defined service other than compilations must successfully participate in an approved peer review program. Participation in such a program is governed by the following.A. A peer review must be completed within 18 months after the initial granting of the permit 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 of this subsection. Rules adopted pursuant to this subsection are routine technical rules pursuant to Title 5, chapter 375, subchapter 2-A.
Sec. Z-18. 32 MRSA §12263, as enacted by PL 1987, c. 489, §2, is amended to read:
Application by a person or a firm not a resident of this State for a certificate under section 12228 or 12240 or a permit to practice license under section 12251 or 12252 shall constitute 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. Z-19. 32 MRSA §12273, as enacted by PL 1987, c. 489, §2 and amended by PL 1999, c. 547, Pt. B, §78 and affected by §80, is repealed.
Sec. Z-20. 32 MRSA §12273-A is enacted to read:
In addition to the grounds enumerated in Title 10, section 8003, subsection 5-A, paragraph A, the board may deny a license, refuse to renew a license or impose the disciplinary sanctions authorized by Title 10, section 8003, subsection 5-A for:
1. Loss of authority in other state.
Cancellation, revocation, suspension or refusal to renew authority to engage in the practice of public accountancy in any other state for any cause;
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 changes to the board under section 12251, subsection 6 or section 12252, subsection 6;
3. Revocation or suspension of right to practice.
Revocation or suspension of the right to practice before any state or federal agency;
4. Dishonesty, fraud, gross negligence, failure to file.
Dishonesty, fraud or gross negligence in the practice of public accountancy or in the filing or failure to file the licensee's own income tax returns;
5. Fraud.
Performance of any fraudulent act while holding a certificate or license issued under this chapter or prior law; and
6. Adverse conduct.
Any conduct reflecting adversely upon the licensee's fitness to engage in the practice of public accountancy.
Sec. Z-21. 32 MRSA §12274, sub-§1, as amended by PL 1999, c. 547, Pt. B, §74 and affected by §80, is repealed.
Sec. Z-22. 32 MRSA §12274, sub-§3, as enacted by PL 1987, c. 489, §2, is 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, the board shall examine its records to determine whether the licensee holds a certificate or a permit to practice public accountancy 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. Z-23. 32 MRSA §12274, sub-§4, as enacted by PL 1987, c. 489, §2, is amended to read:
4. Board; consideration.
The board shall consider applications upon suspension, revocation or refusal to renew according to this subsection. A. In any case when the board has suspended or revoked a certificate or a permit license or refused to renew a permit license, the board may modify the suspension or reissue the certificate or permit license upon application in writing by the person or firm affected and for good cause shown.
B. The board shall by rule specify the manner in which those applications shall must be made, the times within which they shall must be made and the circumstances in which hearings will be held.
C. Before reissuing or terminating the suspension of a certificate or permit license under this section, and as a condition 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 permit license conditional and subject to satisfactory completion of a quality review conducted in such fashion as the board may specify.
Sec. Z-24. 32 MRSA §12275, as amended by PL 1999, c. 619, §4, is further amended to read:
1. Issuance of reports.
No person or firm not holding a valid permit license issued under section 12251 or 12252 may issue a report, including reviews and compilations, on financial statements of any other person, firm, organization or governmental unit. This prohibition does not apply to the following: A. An officer, partner or employee of any firm or organization affixing his that person's signature to any statement or report in reference to the financial affairs of that firm or organization with any wording designating the position, title or office that he that person holds in the organization;
B. Any act of a public official or employee in the performance of his that person's duties as such; or
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 without the issuance of reports.
2. Misuse of title; individual; certified public accountants.
No person not holding a valid certificate issued under section 12227, shall use or assume the title 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.
3. Use of title.
A firm may not assume or use the title or designation "certified public accountant," the abbreviation "CPA" or any other title, designation, words, letters, abbreviation, sign, card or device indicating that the firm is composed of certified public accountants, unless: A. The firm holds a valid permit license issued under section 12252; and
B. A simple majority of all partners, officers, shareholders, members or managers of the firm hold certificates.
4. Misuse of title; public accountant.
No persons 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 he that person holds a valid permit license issued under section 12251.
5. Misuse of title; firm; public accountant.
No firm not holding a valid permit license issued under section 12252 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 firm is composed of public accountants.
6. Similar titles prohibited.
No person or firm not holding a valid permit license issued under section 12251 or 12252 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 permit license may use the titles pertaining to that certificate in any manner not prohibited by rules promulgated adopted by the board under section 12214, subsection 4.
7. Similar designation prohibited.
No person or firm not holding a valid permit license issued under section 12251 or 12252 may assume or use any title or designation that includes the words "auditor" or "auditing" in connection with any other language, including the language of a report, that implies that the person or firm holds such a permit license or has special competence as an auditor, provided that this subsection does not prohibit any officer, partner or employee of any firm or organization from affixing his 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 he that person holds in the firm or organization or prohibit any act of a public official or employee in the performance of his that person's duties.
8. Unauthorized practice.
No person holding a certificate may engage in the practice of public accountancy, unless he that person also holds a valid permit license issued under section 12251.
9. Form of firm.
No person or firm holding a permit license may engage in the practice of public accountancy using a professional or firm name or designation that is misleading about the legal form of the firm, about the persons who are partners, officers or shareholders of the firm or about any other matter, provided except that the names of one or more former partners or shareholders may be included in the name of a firm or its successor.
10. Foreign practice.
Subsections 1 to 11 do not apply to a person or firm holding a certificate, designation, degree or license granted in a foreign country entitling the holder to engage in the practice of public accountancy or its equivalent in that country, whose activities in this State are limited to the provision of professional services to persons or firms who are residents of, governments of or business entities of the country in which he that person holds that entitlement, who issues no reports with respect to the financial statements of any other persons, firms or governmental units in this State, and who does not use in this State any title or designation other than the one under which he that person practices in that country, followed by a translation of that title or designation into the English language, if it is in a different language and by the name of that country.
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 permit to practice license issued under section 12251 or 12252, provided that the employee or assistant shall may not issue any accounting or financial statements over his the employee's or assistant's name.
12. Commissions; referral fees.
A licensee, when performing for a client a defined service, may not receive a commission or a referral fee:A. For recommending or referring to a client any product or service;
B. For recommending or referring any product or service to be supplied by a client; or
C. As a consequence of a decision by a client to purchase or supply a particular product or service.
Notwithstanding paragraphs A, B and C, a licensee may receive a commission or a referral fee if the licensee's compilation report discloses in writing a lack of independence.
This prohibition applies during the period in which the licensee is engaged to perform any of the defined services and the period covered by any historical financial statements involved in the defined services.
A licensee who is not prohibited by this section from receiving a commission or a referral fee shall disclose in writing to any person or entity to whom the licensee recommends or refers a product or service to which the commission or referral fee relates the fact that the licensee has been paid or expects to be paid a commission or referral fee.
13. Contingency fees.
A licensee or a licensee's firm may not:A.
When involved in providing for a client a defined service:
(1) Perform for a contingent fee any services for a client; or
(2) Receive a contingency fee from a client; or
B. Prepare an original or amended tax return or claim for a tax refund for a contingent fee.
Notwithstanding paragraph A, a licensee when providing a defined service may receive a contingency fee if the licensee's compilation report discloses in writing a lack of independence.
The prohibitions apply during the period in which the licensee is engaged to perform any of the services listed in this section and the period covered by any historical financial statements involved in any of the listed services.
As used in this subsection a "contingent fee" or "contingency fee" means a fee established for the performance of any service pursuant to an arrangement in which no fee is charged unless a specified finding or result is attained or in which the amount of the fee is otherwise dependent upon the finding or result of the service. For purposes of this subsection, fees are not regarded as being contingent if fixed by courts or other public authorities or, in tax matters, if determined based on the results of judicial proceedings or the findings of governmental agencies. A licensee's fees may vary depending on the complexity of services rendered.
Sec. Z-25. 32 MRSA §12276, as enacted by PL 1987, c. 489, §2 and amended by PL 1999, c. 547, Pt. B, §78 and affected by §80, is repealed.
Sec. Z-26. 32 MRSA §12277, as enacted by PL 1987, c. 489, §2, is repealed and the following enacted in its place:
A person who violates section 12275 is subject to the provisions of Title 10, section 8003-C.
Sec. Z-27. Maine Revised Statutes headnote amended; revision clause. In the Maine Revised Statutes, Title 32, chapter 113, subchapter 5, in the subchapter headnote, the words "permits to practice" are amended to read "licenses" and the Revisor of Statutes shall implement this revision when updating, publishing or republishing the statutes.
Sec. Z-28. 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 permits" are amended to read "enforcement against holders of certificates and licenses" and the Revisor of Statutes shall implement this revision when updating, publishing or republishing the statutes.