Accountants - Licensed Out-of-State Practice Privileges - Qualifications
Summary
HB887 changes Maryland’s rules for out-of-state certified public accountants who want to practice in the State under reciprocal or practice-privilege provisions. The bill narrows the qualification standard for an out-of-state CPA to be treated as having substantially equivalent credentials: instead of relying on NASBA verification of a state’s licensure requirements, the individual must hold a valid CPA license from another state and must have been required to pass the Uniform CPA Examination to qualify for that license. The bill keeps the existing framework that allows qualifying out-of-state CPAs to practice in Maryland without first obtaining a Maryland license, and it preserves the ability to practice by mail, telephone, or electronic communication without notice or a fee to the Board.
The bill also maintains the conditions attached to the practice privilege. Out-of-state CPAs and any firm employing them must consent to Maryland’s jurisdiction and disciplinary authority, comply with Maryland public accountancy laws and Board regulations, appoint their home-state board as agent for service of process, and stop practicing in Maryland if their home-state license becomes invalid. The bill continues to allow these practitioners to use CPA-related titles and representations in Maryland, while preserving the rule that sole practitioners may perform certain attest services only through a firm holding the required Maryland permit. The act takes effect October 1, 2025.
Impact
HB887 amends § 2-321 of the Business Occupations and Professions Article, altering the criteria for out-of-state CPAs to obtain Maryland practice privileges and removing the prior NASBA-based substantial-equivalence pathway from the statute. It does not change the general licensing requirement in § 2-301, but it expands and clarifies who may practice in Maryland without a Maryland license if they meet the revised reciprocal-licensure conditions. The bill affects out-of-state accountants, accounting firms, and the Maryland State Board of Public Accountancy by simplifying the qualification test while preserving regulatory oversight and disciplinary authority.
Sentiment
The bill appears to have been broadly supported and noncontroversial. It passed the House 132-0 and the Senate 43-0, indicating unanimous approval in both chambers. The lack of committee transcript material also suggests there was little recorded debate or opposition in the available materials.
Contention
No specific points of contention are reflected in the available committee records or vote history. The main policy choice in the bill is the shift away from NASBA verification toward a simpler requirement that the applicant have passed the Uniform CPA Examination to qualify in another state. Any concern would likely center on whether this change sufficiently protects Maryland’s standards while making it easier for out-of-state CPAs to practice, but no opposition is documented in the provided materials.