Accountants - Licensed Out-of-State Practice Privileges - Qualifications
Summary
SB51 changes Maryland’s rules for out-of-state certified public accountants who want to practice in the state under a reciprocal or “practice privilege” arrangement. Under current law, an out-of-state CPA can generally practice in Maryland if the person’s home state has been verified as substantially equivalent to Maryland’s licensing standards under the Uniform Accountancy Act. The bill narrows and simplifies that qualification by requiring the individual to hold a valid CPA license from another state and to have been required to pass the Uniform CPA Examination to qualify for that license.
The bill also preserves the ability of qualifying out-of-state CPAs to practice in Maryland without first obtaining a Maryland license, fee, or notice to the Board, including by mail, phone, or electronic communication. It keeps the existing conditions that the practitioner and any employing firm consent to Maryland jurisdiction and disciplinary authority, comply with Maryland accountancy laws, and stop practicing in Maryland if the home-state license becomes invalid. The bill does not change the general rule that Maryland licensure is required unless an exception applies, and it continues the restriction that sole practitioners using the practice privilege may perform attest services only through a properly permitted firm.
Impact
SB51 amends Title 2 of the Business Occupations and Professions Article, specifically § 2-321 governing reciprocal practice privileges for certified public accountants. The practical effect is to alter the eligibility standard for out-of-state CPAs practicing in Maryland by replacing the prior NASBA substantial-equivalence verification requirement with a requirement tied to passage of the Uniform CPA Examination. This affects out-of-state accountants, CPA firms employing them, and the Maryland State Board of Public Accountancy, while leaving the broader licensing framework intact.
Sentiment
The bill appears to have been broadly supported and noncontroversial. It passed the Senate 45-0 and the House 139-0, indicating unanimous approval in both chambers. The absence of committee transcript discussion also suggests the measure was viewed as a technical or professional licensing update rather than a contested policy change.
Contention
No recorded committee debate or floor opposition is included in the provided materials, and the unanimous votes suggest little visible contention. The main policy issue embedded in the bill is whether Maryland should rely on a simpler exam-based qualification standard instead of NASBA’s substantial-equivalence verification process for out-of-state CPAs. Any concern would likely come from balancing easier interstate mobility for accountants against maintaining oversight and ensuring comparable professional standards, but no specific opponents or arguments are identified in the record provided.