<section article="gbo" article_name="Business Occupations and Professions" number="2-101" title_number="2" title_name="Accountants" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <text>In this title the following words have the meanings indicated.</text> </level> <level label="b"> <text>“AICPA” means the American Institute of Certified Public Accountants.</text> </level> <level label="c"> <text>“Attest” means to provide the following services:</text> <level label="1"> <text>an audit or other engagement performed in accordance with the Statements on Auditing Standards issued by AICPA;</text> </level> <level label="2"> <text>a review of a financial statement performed in accordance with the Statements on Standards for Accounting and Review Services issued by AICPA;</text> </level> <level label="3"> <text>a compilation;</text> </level> <level label="4"> <text>any examination, review, or agreed–upon procedures engagement to be performed in accordance with the Statements on Standards for Attestation Engagements issued by AICPA; and</text> </level> <level label="5"> <text>any engagement performed in accordance with the Auditing Standards of the Public Company Accounting Oversight Board.</text> </level> </level> <level label="d"> <text>“Board” means the State Board of Public Accountancy.</text> </level> <level label="e"> <text>“Compilation” means a presentation of information in the form of a financial statement that is performed in accordance with the Statements on Standards for Accounting and Review Services issued by AICPA.</text> </level> <level label="f"> <text>“Home office” is the location specified by a client of a certified public accountant as the address to which a service described in § 2–401(a) of this title is directed.</text> </level> <level label="g"> <text>“License” means, unless the context requires otherwise, a license issued by the Board to practice certified public accountancy.</text> </level> <level label="h"> <text>“License fee” means the fee paid in connection with the issuance or renewal of a license.</text> </level> <level label="i"> <text>“Licensed certified public accountant” means, unless the context requires otherwise, an individual licensed by the Board to practice certified public accountancy.</text> </level> <level label="j"> <text>“NASBA” means the National Association of Boards of Accountancy.</text> </level> <level label="k"> <text>“Permit” means, unless the context requires otherwise, a permit issued by the Board to allow a partnership or corporation to operate a business through which an individual may practice certified public accountancy.</text> </level> <level label="l"> <text>“Permit fee” means the fee paid in connection with the issuance or renewal of a permit.</text> </level> <level label="m"> <text>“Practice certified public accountancy” means to perform any of the following accountancy services:</text> <level label="1"> <text>conducting an audit, review, or compilation of financial statements;</text> </level> <level label="2"> <text>conducting any examination, review, or agreed–upon procedures engagement to be performed in accordance with the Statements on Standards for Attestation Engagements issued by AICPA; or</text> </level> <level label="3"> <text>providing a written certificate or opinion offering positive or negative assurance or full or limited assurance on the correctness of the information or on the fairness of the presentation of the information in:</text> <level label="i"> <text>a financial statement;</text> </level> <level label="ii"> <text>a report;</text> </level> <level label="iii"> <text>a schedule; or</text> </level> <level label="iv"> <text>an exhibit.</text> </level> </level> </level> <level label="n"> <text>“Practice privilege” means the right granted to an individual who is licensed by another state to practice certified public accountancy in this State without a license issued by this State.</text> </level> <level label="o"> <text>“Principal place of business” means the office location designated by the licensee for purposes of substantial equivalency and reciprocity.</text> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-102" title_number="2" title_name="Accountants" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <text>If the person does not engage in any activity expressly included in the definition of practice certified public accountancy, this title does not prohibit:</text> <level label="1"> <text>an individual from serving as an employee of or assistant to a licensee or permit holder;</text> </level> <level label="2"> <text>a public official or public employee from performing the duties of the position of that individual; or</text> </level> <level label="3"> <text>a person from providing or offering to the public bookkeeping and accounting services, including:</text> <level label="i"> <text>development or installation of a bookkeeping system;</text> </level> <level label="ii"> <text>recordation or presentation of financial information;</text> </level> <level label="iii"> <text>preparation of:</text> <level label="1"> <text>a financial statement;</text> </level> <level label="2"> <text>a compilation of a financial statement that:</text> </level> <level label="A"> <text>does not reference the Statements on Standards for Accounting and Review Services issued by AICPA; and</text> </level> <level label="B"> <text>expressly states that the person has not undergone and is not required to undergo peer review;</text> </level> <level label="3"> <text>a report;</text> </level> <level label="4"> <text>a schedule; or</text> </level> <level label="5"> <text>an exhibit; or</text> </level> </level> <level label="iv"> <text>any similar activity.</text> </level> </level> </level> <level label="b"> <text>This title does not prohibit a licensee or permit holder from:</text> <level label="1"> <text>employing a certified public accountant licensed by another state or a foreign country; or</text> </level> <level label="2"> <text>listing that individual as a certified public accountant, if the individual qualifies for a practice privilege under § 2–321 of this title.</text> </level> </level> <level label="c"> <text>The Board shall adopt regulations that specify the language of the disclosure statement relating to exemption from peer review that is required to be included in a compilation of a financial statement prepared under subsection (a)(3)(iii)2 of this section.</text> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-201" title_number="2" title_name="Accountants" subtitle_number="2" subtitle_name="State Board of Public Accountancy"> <text>There is a State Board of Public Accountancy in the Department.</text> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-202" title_number="2" title_name="Accountants" subtitle_number="2" subtitle_name="State Board of Public Accountancy"> <level label="a"> <level label="1"> <text>The Board consists of 7 members.</text> </level> <level label="2"> <text>Of the 7 members of the Board:</text> <level label="i"> <text>5 shall be licensed certified public accountants, of whom:</text> <level label="1"> <text>4 shall practice certified public accountancy actively; and</text> </level> <level label="2"> <text>1 shall be a full-time professor of accounting at an accredited college; and</text> </level> </level> <level label="ii"> <text>2 shall be consumer members.</text> </level> </level> <level label="3"> <text>The Governor shall appoint the members with the advice of the Secretary.</text> </level> </level> <level label="b"> <text>Each member of the Board shall be:</text> <level label="1"> <text>a citizen of the United States; and</text> </level> <level label="2"> <text>a resident of the State.</text> </level> </level> <level label="c"> <text>Each consumer member of the Board:</text> <level label="1"> <text>shall be a member of the general public;</text> </level> <level label="2"> <text>may not be a licensee or otherwise be subject to regulation by the Board;</text> </level> <level label="3"> <text>may not be required to meet the qualifications for the professional members of the Board; and</text> </level> <level label="4"> <text>may not, within 1 year before appointment, have had a financial interest in or have received compensation from a person regulated by the Board.</text> </level> </level> <level label="d"> <text>While a member of the Board, a consumer member may not:</text> <level label="1"> <text>have a financial interest in or receive compensation from a person regulated by the Board; or</text> </level> <level label="2"> <text>grade any examination given by or for the Board.</text> </level> </level> <level label="e"> <text>Before taking office, each appointee to the Board shall take the oath required by Article I, § 9 of the Maryland Constitution.</text> </level> <level label="f"> <level label="1"> <text>The term of a member is 3 years and begins on July 1.</text> </level> <level label="2"> <text>The terms of members are staggered as required by the terms provided for members of the Board on October 1, 1989.</text> </level> <level label="3"> <text>At the end of a term, a member continues to serve until a successor is appointed and qualifies.</text> </level> <level label="4"> <text>A member who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed and qualifies.</text> </level> <level label="5"> <text>A member may not serve more than 2 terms consecutively, but following the 2nd term, may serve again after an interval of at least 3 years.</text> </level> </level> <level label="g"> <level label="1"> <text>The Governor may remove a member for incompetence or misconduct.</text> </level> <level label="2"> <text>The Governor shall remove a member who ceases to meet the requirements under which the member was appointed, as provided under subsections (a) and (b) of this section.</text> </level> <level label="3"> <text>Except as provided in paragraph (4) of this subsection and subject to paragraph (5) of this subsection, a member shall be considered to have resigned if the member did not attend at least two–thirds of the Board meetings held during any consecutive 12–month period while the member was serving on the Board.</text> </level> <level label="4"> <text>The Governor may waive a member’s resignation and allow the member to continue serving if the member has been unable to attend meetings for reasons satisfactory to the Governor and the reasons are made public.</text> </level> <level label="5"> <text>In accordance with § 8–501 of the State Government Article, the chairman shall provide notice to the Governor and the Governor shall appoint a successor.</text> </level> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-203" title_number="2" title_name="Accountants" subtitle_number="2" subtitle_name="State Board of Public Accountancy"> <level label="a"> <text>From among its members, the Board shall elect:</text> <level label="1"> <text>a chairman; and</text> </level> <level label="2"> <level label="i"> <text>a secretary and a treasurer; or</text> </level> <level label="ii"> <text>a secretary-treasurer.</text> </level> </level> </level> <level label="b"> <text>The manner of election of officers and their terms of office shall be as the Board determines.</text> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-204" title_number="2" title_name="Accountants" subtitle_number="2" subtitle_name="State Board of Public Accountancy"> <level label="a"> <text>A majority of the members then serving on the Board is a quorum.</text> </level> <level label="b"> <text>The Board shall determine the times and places of its meetings.</text> </level> <level label="c"> <text>Each member of the Board is entitled to:</text> <level label="1"> <text>compensation in accordance with the State budget; and</text> </level> <level label="2"> <text>reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.</text> </level> </level> <level label="d"> <text>The Board may employ a staff in accordance with the State budget.</text> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-205" title_number="2" title_name="Accountants" subtitle_number="2" subtitle_name="State Board of Public Accountancy"> <text>In addition to any other remedy authorized under this title, the Board, with the approval of the Attorney General, may sue in the name of the State to enjoin any act that is prohibited under Subtitle 6 of this title.</text> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-206" title_number="2" title_name="Accountants" subtitle_number="2" subtitle_name="State Board of Public Accountancy"> <level label="a"> <text>On request of any person and payment of a verification fee set by the Board, the Board shall certify the licensing or permit status and qualifications of any person who is the subject of the request.</text> </level> <level label="b"> <text>Each certification under this section:</text> <level label="1"> <text>shall include a statement of the licensing or permit status of the person who is the subject of the request; and</text> </level> <level label="2"> <text>may include:</text> <level label="i"> <text>information about the examination results and other qualifications of that person;</text> </level> <level label="ii"> <text>information about the dates of issuance and renewal of the license or permit of that person;</text> </level> <level label="iii"> <text>information about any disciplinary action taken against that person; and</text> </level> <level label="iv"> <text>if authorized by that person, information about any complaint against that person.</text> </level> </level> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-207" title_number="2" title_name="Accountants" subtitle_number="2" subtitle_name="State Board of Public Accountancy"> <level label="a"> <text>In addition to any powers set forth elsewhere, the Board may adopt:</text> <level label="1"> <text>any bylaw that is necessary to do the business of the Board; and</text> </level> <level label="2"> <text>any regulation to carry out this title.</text> </level> </level> <level label="b"> <text>In addition to any duties set forth elsewhere, the Board shall:</text> <level label="1"> <text>adopt rules of professional conduct as appropriate to establish a high standard of integrity and dignity for practicing certified public accountancy; and</text> </level> <level label="2"> <text>keep a record of its proceedings.</text> </level> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-208" title_number="2" title_name="Accountants" subtitle_number="2" subtitle_name="State Board of Public Accountancy"> <level label="a"> <text>The Board shall maintain a listing of the names and mailing addresses of all licensees and permit holders.</text> </level> <level label="b"> <text>The Board may release its list to the public.</text> </level> <level label="c"> <text>The licensee or permit holder shall designate the mailing address at the time of issuance of the original license or permit and on the renewal of the license or permit.</text> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-209" title_number="2" title_name="Accountants" subtitle_number="2" subtitle_name="State Board of Public Accountancy"> <level label="a"> <level label="1"> <text>Beginning on July 1, 2008, the Board may set by regulation reasonable fees for its services.</text> </level> <level label="2"> <text>The fees shall be:</text> <level label="i"> <text>set so as to produce funds to approximate the cost of maintaining the Board; and</text> </level> <level label="ii"> <text>based on the calculations performed by the Secretary of Labor under § 2–106.6 of the Business Regulation Article.</text> </level> </level> </level> <level label="b"> <text>The Board shall publish the fee schedule set by the Board.</text> </level> <level label="c"> <level label="1"> <text>Beginning on July 1, 2007, the Board shall pay all fees collected under this title to the Comptroller.</text> </level> <level label="2"> <text>The Comptroller shall distribute the fees to the State Board of Public Accountancy Fund established in § 2–106.5 of the Business Regulation Article.</text> </level> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-210" title_number="2" title_name="Accountants" subtitle_number="2" subtitle_name="State Board of Public Accountancy"> <text>Any person aggrieved by a final decision of the Board in a contested case, as defined in § 10-202 of the State Government Article, may take an appeal as allowed in §§ 10-222 and 10-223 of the State Government Article.</text> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-211" title_number="2" title_name="Accountants" subtitle_number="2" subtitle_name="State Board of Public Accountancy"> <text>The Board exercises its powers, duties, and functions subject to the authority of the Secretary.</text> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-301" title_number="2" title_name="Accountants" subtitle_number="3" subtitle_name="Licenses"> <text>Except as provided in § 2–321 of this subtitle or §§ 10–14A–03 and 10–14B–03 of the State Government Article, an individual shall be licensed by the Board before the individual may practice certified public accountancy in the State.</text> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-302" title_number="2" title_name="Accountants" subtitle_number="3" subtitle_name="Licenses"> <level label="a"> <text>To qualify for a license, an applicant shall be an individual who meets the requirements of this section.</text> </level> <level label="b"> <text>The applicant shall be of good character and reputation.</text> </level> <level label="c"> <text>The applicant shall be at least 18 years old.</text> </level> <level label="d"> <text>The applicant shall meet the educational requirements under § 2–303 of this subtitle.</text> </level> <level label="e"> <text>Except as otherwise provided in this subtitle, the applicant shall pass an examination given by the Board under this subtitle.</text> </level> <level label="f"> <text>The applicant for an initial license shall complete practical work experience that is approved by the Board and that:</text> <level label="1"> <text>is obtained over a period of:</text> <level label="i"> <text>not more than 6 years; and</text> </level> <level label="ii"> <text>not less than 1 year;</text> </level> </level> <level label="2"> <text>includes providing any type of service or advice involving the use of accounting, attest, management advisory, financial advisory, tax, or consulting skills;</text> </level> <level label="3"> <text>is performed under the direction of:</text> <level label="i"> <text>a licensed certified public accountant; or</text> </level> <level label="ii"> <text>an appropriately qualified professional as determined by the Board;</text> </level> </level> <level label="4"> <text>is obtained through employment in government, industry, academia, or public practice; and</text> </level> <level label="5"> <text>amounts to:</text> <level label="i"> <text>2,000 hours if the applicant seeks to qualify for a license under § 2–303(a)(2)(i) or (ii) of this subtitle; or</text> </level> <level label="ii"> <text>4,000 hours if the applicant seeks to qualify for a license under § 2–303(a)(2)(iii) of this subtitle.</text> </level> </level> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-303" title_number="2" title_name="Accountants" subtitle_number="3" subtitle_name="Licenses"> <level label="a"> <level label="1"> <text>In order to take the examination, an applicant shall hold a baccalaureate or higher degree that meets the requirements of this section.</text> </level> <level label="2"> <text>In order to become licensed, in addition to the other qualifications for a license set forth in this subtitle, an applicant shall have satisfactorily completed:</text> <level label="i"> <level label="1"> <text>a master’s degree with a concentration in accounting or an equivalent of a concentration in accounting; and</text> </level> <level label="2"> <text>not less than 1 year of practical work experience as described in § 2–302(f)(5)(i) of this subtitle;</text> </level> </level> <level label="ii"> <level label="1"> <text>a baccalaureate degree and an additional 30 semester credit hours with a concentration in accounting or an equivalent of a concentration in accounting; and</text> </level> <level label="2"> <text>not less than 1 year of practical work experience as described in § 2–302(f)(5)(i) of this subtitle; or</text> </level> </level> <level label="iii"> <level label="1"> <text>a baccalaureate degree with a concentration in accounting or an equivalent of a concentration in accounting; and</text> </level> <level label="2"> <text>not less than 2 years of practical work experience as described in § 2–302(f)(5)(ii) of this subtitle.</text> </level> </level> </level> </level> <level label="b"> <text>The applicant shall have completed for the baccalaureate or master’s degree required under subsection (a) of this section a curriculum that the Board considers to constitute:</text> <level label="1"> <text>a major in accounting; or</text> </level> <level label="2"> <text>a substantial equivalent to a major in accounting, of which required credits or courses may be taken at any 2– or 4–year regionally accredited institution of higher education.</text> </level> </level> <level label="c"> <text>The degree required under this section shall be awarded by a school, college, university, or other institution that:</text> <level label="1"> <text>is a member of the Association to Advance Collegiate Schools of Business;</text> </level> <level label="2"> <text>is a member of the Accreditation Council for Business Schools and Programs;</text> </level> <level label="3"> <text>is accredited by or is a constituent unit of an institution accredited by:</text> <level label="i"> <text>the Middle States Association of Colleges and Schools; or</text> </level> <level label="ii"> <text>the equivalent regional accrediting association for other regional areas; or</text> </level> </level> <level label="4"> <text>is recognized and approved by the Board.</text> </level> </level> <level label="d"> <level label="1"> <text>The Board may use the services of any institution that it considers appropriate to determine what constitutes a substantial equivalent to a major in accounting under subsection (b)(2) of this section.</text> </level> <level label="2"> <text>If the Board uses an institution to determine curriculum equivalencies, the Board may accept as final the determination of that institution.</text> </level> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-304" title_number="2" title_name="Accountants" subtitle_number="3" subtitle_name="Licenses"> <text>An applicant for a license shall:</text> <level label="1"> <text>submit to the Board an application on the form that the Board provides; and</text> </level> <level label="2"> <text>pay to the Board or the Board’s designee:</text> <level label="i"> <text>a nonrefundable application fee set by the Board; and</text> </level> <level label="ii"> <text>an examination fee set by the Board in an amount not to exceed the cost of the required examination.</text> </level> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-305" title_number="2" title_name="Accountants" subtitle_number="3" subtitle_name="Licenses"> <level label="a"> <text>An applicant who meets the educational requirements established by the Board is entitled to be examined as provided in this section.</text> </level> <level label="b"> <text>The Board shall give examinations to applicants at least twice a year, at the times and places that the Board determines.</text> </level> <level label="c"> <text>The Board shall give each qualified applicant notice of the time and place of examination.</text> </level> <level label="d"> <level label="1"> <text>The Board shall give the examination prepared by the American Institute of Certified Public Accountants or an equivalent examination as determined by the Board.</text> </level> <level label="2"> <text>The Board may use the services of the American Institute of Certified Public Accountants to prepare or grade an examination. If the Board uses the services of the Institute, the Board may accept as final the grades that the Institute determines.</text> </level> <level label="3"> <text>The Board may use the services of any person whom the Board considers appropriate to proctor an examination.</text> </level> </level> <level label="e"> <text>The Board shall adopt regulations that establish the passing score for an examination.</text> </level> <level label="f"> <level label="1"> <text>The Board shall mail or electronically transmit to each applicant notice of the applicant’s examination score.</text> </level> <level label="2"> <text>Any applicant who requests an appointment within 60 days after the date on which the notice is mailed or electronically transmitted may review the applicant’s answers to the examination.</text> </level> </level> <level label="g"> <level label="1"> <text>If the Board uses the services of the American Institute of Certified Public Accountants to grade an examination, the Board may mail or electronically transmit the examination answers to the Institute.</text> </level> <level label="2"> <text>If the Board sends out examination answers for grading in accordance with paragraph (1) of this subsection, the Board is not liable for the loss or destruction of any of the examination answers while the answers are out of the possession of the Board.</text> </level> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-306" title_number="2" title_name="Accountants" subtitle_number="3" subtitle_name="Licenses"> <text>The Board may adopt regulations that, under the conditions that the Board considers appropriate, allow an applicant who obtains a passing score on any part of an examination to:</text> <level label="1"> <text>be given credit for that part; and</text> </level> <level label="2"> <text>be reexamined only in the remaining parts.</text> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-307" title_number="2" title_name="Accountants" subtitle_number="3" subtitle_name="Licenses"> <level label="a"> <text>Subject to the provisions of this section, an applicant who fails an examination given under § 2-305 of this subtitle may retake the examination.</text> </level> <level label="b"> <level label="1"> <text>Subject to the provisions of this subsection, the Board may not limit the number of times that an applicant may take an examination.</text> </level> <level label="2"> <text>The Board may adopt regulations to set conditions for retaking examinations, including requirements that an applicant:</text> <level label="i"> <text>wait a reasonable period between examinations; and</text> </level> <level label="ii"> <text>prepare for reexamination in a manner specified by the Board.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>An applicant for reexamination shall:</text> <level label="i"> <text>submit to the Board an application for reexamination on the form that the Board provides; and</text> </level> <level label="ii"> <text>pay to the Board or the Board’s designee a reexamination fee set under this subsection.</text> </level> </level> <level label="2"> <text>The Board shall set fees for reexamination so that:</text> <level label="i"> <text>the fee for reexamination on the entire examination does not exceed the cost of the required reexamination; and</text> </level> <level label="ii"> <text>the fee for reexamination on less than the entire examination is less than the fee set for the entire examination.</text> </level> </level> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-308" title_number="2" title_name="Accountants" subtitle_number="3" subtitle_name="Licenses"> <level label="a"> <text>Subject to the provisions of this section, the Board may waive any examination requirement of this subtitle for:</text> <level label="1"> <text>a certified public accountant licensed by another state; or</text> </level> <level label="2"> <text>the holder of a license, certificate, or degree that is issued by another country and is recognized as authority for the holder to practice public accountancy in that country in a manner comparable to practicing certified public accountancy in this State.</text> </level> </level> <level label="b"> <text>The Board may grant a waiver under this section only if the applicant:</text> <level label="1"> <text>is of good character and reputation;</text> </level> <level label="2"> <text>is at least 18 years of age;</text> </level> <level label="3"> <text>pays to the Board:</text> <level label="i"> <text>a nonrefundable application fee set by the Board; and</text> </level> <level label="ii"> <text>a license fee set by the Board; and</text> </level> </level> <level label="4"> <text>provides adequate evidence that the applicant has met educational, examination, and experience requirements that are:</text> <level label="i"> <text>substantially equivalent to those required by the laws of this State;</text> </level> <level label="ii"> <text>substantially equivalent to those required by the laws of the State at the time the applicant was licensed in another state; or</text> </level> <level label="iii"> <text>after passing the Uniform Certified Public Accountancy Examination, has obtained 4 years of practical work experience, as defined in § 2–302(f) of this subtitle, within the last 10 years immediately preceding submission of the application.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>For the purposes of this subtitle, “substantial equivalency” means a determination made by the Board or its designee that:</text> <level label="i"> <text>the education, examination, and experience requirements contained in the laws or administrative rules of another jurisdiction are comparable to, or exceed, the education, examination, and experience requirements contained in the Uniform Accountancy Act; or</text> </level> <level label="ii"> <text>an individual’s education, examination, and experience are comparable to or exceed the education, examination, and experience requirements contained in the Uniform Accountancy Act.</text> </level> </level> <level label="2"> <text>In determining substantial equivalency, the Board shall take into account an individual’s qualifications without regard to the sequence in which the education, examination, or experience requirements are met.</text> </level> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-309" title_number="2" title_name="Accountants" subtitle_number="3" subtitle_name="Licenses"> <level label="a"> <text>If an applicant qualifies for a license under this subtitle, the Board shall mail or electronically transmit to the applicant a notice that states that:</text> <level label="1"> <text>the applicant has qualified for a license; and</text> </level> <level label="2"> <text>on receipt of a license fee set by the Board, the Board will issue a license to the applicant.</text> </level> </level> <level label="b"> <text>On payment of the license fee, the Board shall issue a license to each applicant who meets the requirements of this subtitle.</text> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-311" title_number="2" title_name="Accountants" subtitle_number="3" subtitle_name="Licenses"> <level label="a"> <level label="1"> <text>This subsection does not apply to a certified public accountant who is on emeritus status under § 2–313.1 of this subtitle.</text> </level> <level label="2"> <text>Unless a license is renewed for a 2–year term as provided in this section, the license expires on the first December 31 that comes:</text> <level label="i"> <text>after the effective date of the license; and</text> </level> <level label="ii"> <text>in an even–numbered year.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>At least 1 month before a license expires, the Board shall mail or electronically transmit to the licensee:</text> <level label="i"> <text>a renewal application form; and</text> </level> <level label="ii"> <text>a notice that states:</text> <level label="1"> <text>the date on which the current license expires; and</text> </level> <level label="2"> <text>the amount of the license fee.</text> </level> </level> </level> <level label="2"> <text>If an electronic transmission under paragraph (1) of this subsection is returned to the Board as undeliverable, the Board shall mail to the licensee, at the last known address of the licensee, the materials required under paragraph (1) of this subsection within 10 business days of the date the Board received the notice that the electronic transmission was undeliverable.</text> </level> </level> <level label="c"> <text>Before a license expires, the licensee periodically may renew it for an additional 2–year term, if the licensee:</text> <level label="1"> <text>otherwise is entitled to be licensed;</text> </level> <level label="2"> <text>pays to the Board a license fee set by the Board; and</text> </level> <level label="3"> <text>submits to the Board:</text> <level label="i"> <text>a renewal application on the form that the Board provides; and</text> </level> <level label="ii"> <text>satisfactory evidence of compliance with the continuing education requirements set under this subtitle for license renewal.</text> </level> </level> </level> <level label="d"> <text>The Board shall renew the license of each licensee who meets the requirements of this section.</text> </level> <level label="e"> <text>The Secretary may determine that licenses issued under this subtitle shall expire on a staggered basis.</text> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-312" title_number="2" title_name="Accountants" subtitle_number="3" subtitle_name="Licenses"> <level label="a"> <level label="1"> <text>The Board shall adopt regulations that set, in accordance with this section, continuing education requirements as a condition to the renewal of licenses under this subtitle.</text> </level> <level label="2"> <text>A continuing education requirement does not apply to the first renewal of a license.</text> </level> <level label="3"> <level label="i"> <text>To qualify for any further renewal of a license under this subtitle, a licensee shall complete, for each 2–year license term, at least 80 hours in programs that the Board approves.</text> </level> <level label="ii"> <text>If a licensee completes more than 80 hours during a 2–year license term, the Board shall credit the excess hours to the requirements for the following term.</text> </level> </level> <level label="4"> <text>Except as provided under paragraph (5) of this subsection, a licensee may not be required to take an examination to qualify for license renewal under this section.</text> </level> <level label="5"> <text>On request of a licensee, the Board may allow the licensee to substitute the passage of an examination for a number of program hours. If the Board grants a request under this paragraph, the Board shall determine the number of program hours that the licensee may satisfy by passage of the examination.</text> </level> </level> <level label="b"> <text>The Board shall set continuing education requirements under this section:</text> <level label="1"> <text>to ensure reasonable knowledge about the current practice of accountancy by certified public accountants and, thus, to ensure a high standard of practice in the profession;</text> </level> <level label="2"> <text>to provide for programs in the various specialized areas of accountancy in which certified public accountants practice;</text> </level> <level label="3"> <text>to provide a licensee with alternative ways by which to qualify through a variety of programs, which may include:</text> <level label="i"> <text>professional development programs;</text> </level> <level label="ii"> <text>technical sessions of professional societies or chapters;</text> </level> <level label="iii"> <text>college courses;</text> </level> <level label="iv"> <text>formal, organized, in–firm educational programs of certified public accounting firms;</text> </level> <level label="v"> <text>seminars provided by governmental units; and</text> </level> <level label="vi"> <text>other seminars or symposiums related to the practice of accountancy; and</text> </level> </level> <level label="4"> <text>to ensure that the programs approved for compliance with the continuing education requirements are available at reasonable intervals throughout the State.</text> </level> </level> <level label="c"> <level label="1"> <text>The Board may appoint a continuing education committee to help the Board in carrying out this section.</text> </level> <level label="2"> <text>Each member of a continuing education committee shall be a licensed certified public accountant.</text> </level> <level label="3"> <text>A continuing education committee shall have the duties that the Board assigns.</text> </level> </level> <level label="d"> <text>The regulations adopted under this section shall provide for a system for reporting and recording the program hours that each licensee earns. However, the Board may not require a licensee to submit scores or grades earned during participation by the licensee in a program.</text> </level> <level label="e"> <level label="1"> <text>The Board may enter into written agreements with qualified persons wishing to conduct approved programs.</text> </level> <level label="2"> <text>A person seeking approval by the Board for this purpose shall:</text> <level label="i"> <text>submit to the Board an application on the form that the Board provides; and</text> </level> <level label="ii"> <text>pay a continuing education provider fee set by the Board.</text> </level> </level> <level label="3"> <text>Agreements entered into under this section shall expire on April 30 of each even–numbered year.</text> </level> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-313" title_number="2" title_name="Accountants" subtitle_number="3" subtitle_name="Licenses"> <level label="a"> <text>The Board shall place a licensee on inactive status and issue an inactive status certificate to the licensee, if the licensee:</text> <level label="1"> <text>submits to the Board an application for inactive status on the form that the Board provides;</text> </level> <level label="2"> <text>pays to the Board an inactive status fee set by the Board; and</text> </level> <level label="3"> <text>except for the continuing education requirements set under § 2–312 of this subtitle, qualifies for an active license.</text> </level> </level> <level label="b"> <text>A licensee on inactive status may not practice certified public accountancy in the State.</text> </level> <level label="c"> <level label="1"> <text>Unless a licensee on inactive status renews it as provided in this section, the licensee loses that status on the first December 31 that comes:</text> <level label="i"> <text>after the inactive status certificate is issued to the licensee; and</text> </level> <level label="ii"> <text>in an even–numbered year.</text> </level> </level> <level label="2"> <level label="i"> <text>At least 1 month before the inactive status of a licensee expires, the Board shall mail or electronically transmit to the licensee:</text> <level label="1"> <text>a renewal application form; and</text> </level> <level label="2"> <text>a notice that states:</text> </level> <level label="A"> <text>the date on which the inactive status expires; and</text> </level> <level label="B"> <text>the amount of the inactive status fee.</text> </level> </level> <level label="ii"> <text>If an electronic transmission under subparagraph (i) of this paragraph is returned to the Board as undeliverable, the Board shall mail to the licensee, at the last known address of the licensee, the materials required under subparagraph (i) of this paragraph within 10 business days of the date the Board received the notice that the electronic transmission was undeliverable.</text> </level> </level> <level label="3"> <text>Before an inactive status expires, the licensee periodically may renew it for an additional 2–year term, if the licensee:</text> <level label="i"> <text>otherwise is entitled to be placed on inactive status;</text> </level> <level label="ii"> <text>pays to the Board an inactive status fee set by the Board; and</text> </level> <level label="iii"> <text>submits to the Board a renewal application on the form that the Board provides.</text> </level> </level> <level label="4"> <text>After an inactive status expires, the former licensee may reapply for inactive status without meeting the continuing education requirements to qualify for an active license under § 2–312 of this subtitle, only if the former licensee:</text> <level label="i"> <text>otherwise is entitled to be placed on inactive status;</text> </level> <level label="ii"> <text>pays to the Board an inactive status fee set by the Board; and</text> </level> <level label="iii"> <text>reapplies to the Board for inactive status within 2 years after initial expiration of inactive status on a form that the Board provides.</text> </level> </level> <level label="5"> <text>The Board shall renew the inactive status of each licensee or grant the reapplication for inactive status of each former licensee who meets the requirements of this subsection.</text> </level> </level> <level label="d"> <text>The Board shall reactivate the license of a licensee who is on inactive status, if the licensee:</text> <level label="1"> <text>complies with each continuing education requirement that the Board sets for this purpose;</text> </level> <level label="2"> <text>submits to the Board an application for reactivation; and</text> </level> <level label="3"> <text>pays to the Board a reactivation fee that is equal to the license fee set by the Board under § 2–311 of this subtitle.</text> </level> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-313.1" title_number="2" title_name="Accountants" subtitle_number="3" subtitle_name="Licenses"> <level label="a"> <text>The Board may place a licensee on emeritus status, if the licensee submits to the Board an application for emeritus status on the form required by the Board.</text> </level> <level label="b"> <text>The Board shall place a licensee on emeritus status if the individual:</text> <level label="1"> <text>has an active or inactive license to practice certified public accountancy under this subtitle;</text> </level> <level label="2"> <text>is not under investigation by the Board for a violation of this title;</text> </level> <level label="3"> <text>is not the subject of a pending disciplinary action related to the practice of certified public accountancy in the State or another state;</text> </level> <level label="4"> <level label="i"> <level label="1"> <text>has practiced public accountancy in the State for at least 20 years; and</text> </level> <level label="2"> <text>is at least 60 years old; or</text> </level> </level> <level label="ii"> <text>has at least 40 years of experience as a certified public accountant; and</text> </level> </level> <level label="5"> <text>attests that:</text> <level label="i"> <text>the individual is retired and is no longer actively practicing public accountancy in the State; and</text> </level> <level label="ii"> <text>the individual will not provide certified public accountancy services unless reinstated in accordance with § 2–314 of this subtitle.</text> </level> </level> </level> <level label="c"> <text>The Board shall review an application submitted under this section within 60 days of receipt of the application.</text> </level> <level label="d"> <text>If the Board approves an application for emeritus status under this section, the Board shall send the licensee:</text> <level label="1"> <text>written notice of the approval; and</text> </level> <level label="2"> <text>a certificate of emeritus status.</text> </level> </level> <level label="e"> <text>A licensee on emeritus status is exempt from:</text> <level label="1"> <text>the continuing education requirements under § 2–312 of this subtitle; and</text> </level> <level label="2"> <text>the reinstatement fee under § 2–314 of this subtitle.</text> </level> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-314" title_number="2" title_name="Accountants" subtitle_number="3" subtitle_name="Licenses"> <text>In accordance with its regulations, the Board may reinstate the license of an individual who has failed to renew the license for any reason or is on emeritus status under § 2–313.1 of this subtitle if the individual:</text> <level label="1"> <text>otherwise is entitled to be licensed;</text> </level> <level label="2"> <text>except as provided under § 2–313.1 of this subtitle, complies with each continuing education requirement that the Board sets for this purpose; and</text> </level> <level label="3"> <text>except as provided under § 2–313.1 of this subtitle, pays to the Board a reinstatement fee set by the Board.</text> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-315" title_number="2" title_name="Accountants" subtitle_number="3" subtitle_name="Licenses"> <level label="a"> <level label="1"> <text>Subject to the hearing provisions of § 2–317 of this subtitle, the Board, on the affirmative vote of a majority of its members, may deny a license to any applicant, reprimand any licensee, or suspend or revoke a license if the applicant or licensee:</text> <level label="i"> <text>fraudulently or deceptively obtains or attempts to obtain a license for the applicant or licensee or for another;</text> </level> <level label="ii"> <text>fraudulently or deceptively uses a license;</text> </level> <level label="iii"> <text>under the laws of the United States or of any state, is convicted of:</text> <level label="1"> <text>a felony; or</text> </level> <level label="2"> <text>a misdemeanor that is directly related to the fitness and qualification of the applicant or licensee to practice certified public accountancy;</text> </level> </level> <level label="iv"> <text>is guilty of fraud or other dishonesty in the practice of accountancy;</text> </level> <level label="v"> <text>is guilty of gross negligence in the practice of accountancy;</text> </level> <level label="vi"> <text>violates any provision of Subtitle 6 of this title;</text> </level> <level label="vii"> <text>has had the right to practice as a certified public accountant in another state denied, revoked, or suspended;</text> </level> <level label="viii"> <text>has been sanctioned in another state in a matter relating to the practice of public accountancy;</text> </level> <level label="ix"> <text>has had the renewal of the right to practice as a certified public accountant in another state denied for any cause other than failure to pay a renewal fee;</text> </level> <level label="x"> <text>has had the right to practice as a certified public accountant before any unit of the State or federal government revoked or suspended;</text> </level> <level label="xi"> <text>has been sanctioned by any unit of State or federal government, or any regulatory entity established by law, for an act or omission that directly relates to the fitness of the applicant or licensee to practice public accountancy; or</text> </level> <level label="xii"> <text>violates a rule of professional conduct adopted by the Board.</text> </level> </level> <level label="2"> <level label="i"> <text>Instead of or in addition to reprimanding the licensee or suspending or revoking a license under this subsection, the Board may impose a penalty not exceeding $5,000 for each violation.</text> </level> <level label="ii"> <text>To determine the amount of the penalty imposed under this subsection, the Board shall consider:</text> <level label="1"> <text>the seriousness of the violation;</text> </level> <level label="2"> <text>the harm caused by the violation;</text> </level> <level label="3"> <text>the good faith of the licensee; and</text> </level> <level label="4"> <text>any history of previous violations by the licensee.</text> </level> </level> </level> <level label="3"> <text>The Board shall pay any penalty collected under this subsection into the General Fund of the State.</text> </level> </level> <level label="b"> <text>The Board shall consider the following facts in the granting, denial, renewal, suspension, or revocation of a license or the reprimand of a licensee when an applicant or licensee is convicted of a felony or misdemeanor described in subsection (a)(1)(iii) of this section:</text> <level label="1"> <text>the nature of the crime;</text> </level> <level label="2"> <text>the relationship of the crime to the activities authorized by the license;</text> </level> <level label="3"> <text>with respect to a felony, the relevance of the conviction to the fitness and qualification of the applicant or licensee to practice certified public accountancy;</text> </level> <level label="4"> <text>the length of time since the conviction; and</text> </level> <level label="5"> <text>the behavior and activities of the applicant or licensee before and after the conviction.</text> </level> </level> <level label="c"> <text>On suspension or revocation of a license, the holder shall surrender to the Board the license certificate of the holder.</text> </level> <level label="d"> <text>At the end of a suspension period, the Board shall return to the licensee the license certificate surrendered under this section.</text> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-316" title_number="2" title_name="Accountants" subtitle_number="3" subtitle_name="Licenses"> <text>On its own initiative or on a written complaint made to the Board by any person, the Board may commence proceedings under § 2-315 of this subtitle.</text> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-317" title_number="2" title_name="Accountants" subtitle_number="3" subtitle_name="Licenses"> <level label="a"> <text>Except as otherwise provided in § 10-226 of the State Government Article, before the Board takes any final action under § 2-315 of this subtitle, it shall give the individual against whom the action is contemplated an opportunity for a hearing before the Board.</text> </level> <level label="b"> <text>The Board shall give notice and hold the hearing in accordance with Title 10, Subtitle 2 of the State Government Article.</text> </level> <level label="c"> <text>The Board may administer oaths in connection with any proceeding under this section.</text> </level> <level label="d"> <level label="1"> <text>The Board may issue a subpoena for the attendance of a witness to testify or the production of evidence in connection with any proceeding under this section.</text> </level> <level label="2"> <text>If a person fails to comply with a subpoena issued under this subsection, on petition of the Board, a circuit court may compel compliance with the subpoena.</text> </level> </level> <level label="e"> <text>If, after due notice, the individual against whom the action is contemplated fails or refuses to appear, nevertheless the Board may hear and determine the matter.</text> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-318" title_number="2" title_name="Accountants" subtitle_number="3" subtitle_name="Licenses"> <level label="a"> <level label="1"> <text>For the limited purpose set forth in paragraph (2) of this subsection, a license shall remain in effect and may not expire by operation of law while the licensee is under investigation by the Board or awaiting a hearing or disposition on charges subject to disciplinary action under this subtitle.</text> </level> <level label="2"> <text>Any extension of a license term caused under this subsection is effective only for the purpose of retaining the jurisdiction of the Board over the licensee during the course of disciplinary proceedings and does not prevent the license from expiring for any other purpose.</text> </level> </level> <level label="b"> <text>Unless the Board agrees to accept the surrender, a licensee may not surrender a license while the licensee is under investigation or awaiting a hearing or disposition on charges subject to disciplinary action under this subtitle.</text> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-319" title_number="2" title_name="Accountants" subtitle_number="3" subtitle_name="Licenses"> <level label="a"> <text>Subject to the provisions of this section, the Board may reinstate:</text> <level label="1"> <text>any license that has been revoked; or</text> </level> <level label="2"> <text>before fulfillment of the conditions of the suspension, any license that has been suspended.</text> </level> </level> <level label="b"> <text>A license may be reinstated under this section only if:</text> <level label="1"> <text>the individual whose license has been revoked or suspended submits a written request to the Board;</text> </level> <level label="2"> <text>the Board holds a hearing on the request;</text> </level> <level label="3"> <text>the Board, by an affirmative vote of a majority of its members, votes to reinstate the license; and</text> </level> <level label="4"> <text>the individual pays to the Board a reinstatement fee set by the Board.</text> </level> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-321" title_number="2" title_name="Accountants" subtitle_number="3" subtitle_name="Licenses"> <level label="a"> <text>In this section, “practice certified public accountancy” includes the practice of public accountancy.</text> </level> <level label="b"> <level label="1"> <text>An individual whose principal place of business is outside the State is exempt from the licensing requirement under § 2–301 of this subtitle and shall be considered to have qualifications that are substantially equivalent to a licensee if the individual:</text> <level label="i"> <text>holds a valid license as a certified public accountant from another state; and</text> </level> <level label="ii"> <text>was required to pass the Uniform CPA Examination to qualify for the license in the other state.</text> </level> </level> <level label="2"> <text>An individual who qualifies for an exemption under paragraph (1) of this subsection may exercise all of the privileges of a licensed certified public accountant.</text> </level> </level> <level label="c"> <text>Notwithstanding any other provision of law, an individual who qualifies for a practice privilege under this section may practice certified public accountancy in the State:</text> <level label="1"> <text>by any means, including mail, telephone, or electronic communication; and</text> </level> <level label="2"> <text>without any notice, fee, or other submission to the Board.</text> </level> </level> <level label="d"> <text>As a condition of the practice privilege, an individual who is licensed by another state and qualifies for a practice privilege under this subtitle and any firm that employs the individual to practice in the State shall both consent to:</text> <level label="1"> <text>the personal and subject matter jurisdiction and disciplinary authority of the Board;</text> </level> <level label="2"> <text>complying with State public accountancy laws and regulations adopted by the Board;</text> </level> <level label="3"> <text>the appointment of the State Board of Public Accountancy that issued the individual’s license to practice certified public accountancy as the agent upon which process may be served in any action or proceeding by the Board against the individual; and</text> </level> <level label="4"> <text>ceasing to offer or provide services in the State that are subject to this title if the license issued by the state in which the individual’s principal place of business is located is no longer valid.</text> </level> </level> <level label="e"> <text>An individual authorized to practice certified public accountancy under this section and under the practice privilege may represent to the public, by use of a title, including “licensed certified public accountant”, “certified public accountant”, “public accountant”, or “auditor”, by use of the abbreviation “CPA”, by description of services, methods, or procedures, or otherwise, that the individual is authorized to practice certified public accountancy in the State.</text> </level> <level label="f"> <text>A sole practitioner who is practicing in the State under the practice privilege may only perform attest services as defined in § 2–101(c)(1), (4), or (5) of this title, through a firm that holds a permit issued under § 2–401 of this title.</text> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-401" title_number="2" title_name="Accountants" subtitle_number="4" subtitle_name="Permits"> <level label="a"> <text>A firm shall hold a permit issued by the Board if the firm:</text> <level label="1"> <text>has an office in this State that performs attest services as defined in § 2–101(c) of this title; or</text> </level> <level label="2"> <text>has an office in this State that uses the title “CPA” or “CPA firm”.</text> </level> </level> <level label="b"> <text>A firm that does not have an office in this State may perform attest services as defined in § 2–101(c) of this title for a client in this State without a permit if the firm:</text> <level label="1"> <text>meets the application and peer review requirements under §§ 2–402, 2–402.1, and 2–403 of this subtitle and § 2–4A–02 of this title; and</text> </level> <level label="2"> <text>performs services through an individual with a practice privilege under § 2–321 of this title in the state where the individual with a practice privilege retains a principal place of business.</text> </level> </level> <level label="c"> <text>The Board shall grant or renew a permit to practice as a CPA firm to a partnership, limited liability company, or corporation that demonstrates its qualifications in accordance with this section.</text> </level> <level label="d"> <text>If a firm does not meet the requirements of this section, the firm may perform professional services other than attest services while using the title “CPA” or “CPA firm” in this State without a permit, if the firm:</text> <level label="1"> <text>performs those services through an individual with a practice privilege provided under § 2–321 of this title; and</text> </level> <level label="2"> <text>performs those services in the state where the individual with a practice privilege retains a principal place of business.</text> </level> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-402" title_number="2" title_name="Accountants" subtitle_number="4" subtitle_name="Permits"> <level label="a"> <text>To qualify for a permit, a partnership shall meet the requirements of this section.</text> </level> <level label="b"> <text>The partnership shall:</text> <level label="1"> <text>have at least a simple majority of the partners, officers, shareholders, members, or managers, in terms of financial interest and voting rights, be licensed in a state;</text> </level> <level label="2"> <level label="i"> <text>have a permanent office in the State from which an individual is licensed to practice certified public accountancy; or</text> </level> <level label="ii"> <text>have at least a simple majority of the partners, officers, shareholders, members, or managers retain a principal place of business in this State;</text> </level> </level> <level label="3"> <text>hold a valid license issued under § 2–301 of this title; and</text> </level> <level label="4"> <text>comply with regulations promulgated by the Board.</text> </level> </level> <level label="c"> <text>An individual who is not licensed to practice certified public accountancy in this State or another state may have an ownership interest in the partnership if:</text> <level label="1"> <text>a simple majority of the ownership of the partnership, in terms of financial interests and voting rights, is held by individuals licensed to practice certified public accountancy in this or another state;</text> </level> <level label="2"> <text>the individual is an active participant in the partnership or its affiliated entities;</text> </level> <level label="3"> <text>the partnership designates, to the Board, a licensee of this State, or a qualified licensee of another state who is responsible for the registration of the partnership; and</text> </level> <level label="4"> <text>the partnership complies with regulations adopted by the Board.</text> </level> </level> <level label="d"> <text>At least 1 general partner and any other partner who practices or intends to practice certified public accountancy in the State shall be licensed by the Board to practice certified public accountancy in the State or qualify for a practice privilege under § 2–321 of this title.</text> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-402.1" title_number="2" title_name="Accountants" subtitle_number="4" subtitle_name="Permits"> <level label="a"> <text>To qualify for a permit, a limited liability company shall meet the requirements of this section.</text> </level> <level label="b"> <text>The limited liability company shall:</text> <level label="1"> <text>have at least a simple majority of the officers, shareholders, members, or managers, in terms of financial interest and voting rights, be licensed in a state;</text> </level> <level label="2"> <level label="i"> <text>have a permanent office in the State from which an individual is licensed to practice certified public accountancy; or</text> </level> <level label="ii"> <text>have at least a simple majority of the officers, shareholders, members, or managers retain a principal place of business in this State;</text> </level> </level> <level label="3"> <text>hold a valid license issued under § 2–301 of this title; and</text> </level> <level label="4"> <text>comply with regulations adopted by the Board.</text> </level> </level> <level label="c"> <text>An individual who is not licensed to practice certified public accountancy in this State or another state may have an ownership interest in the limited liability company if:</text> <level label="1"> <text>a simple majority of the ownership of the limited liability company, in terms of financial interests and voting rights, is held by individuals licensed to practice certified public accountancy in this or another state; and</text> </level> <level label="2"> <text>the individual is an active participant in the limited liability company or affiliated entities.</text> </level> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-403" title_number="2" title_name="Accountants" subtitle_number="4" subtitle_name="Permits"> <level label="a"> <text>To qualify for a permit, a corporation shall meet the requirements of this section.</text> </level> <level label="b"> <text>The corporation shall meet the applicable requirements of the Maryland Professional Service Corporation Act or of the comparable law in another state.</text> </level> <level label="c"> <text>The corporation shall:</text> <level label="1"> <text>have at least a simple majority of the officers, shareholders, members, or managers, in terms of financial interest and voting rights, be licensed in a state;</text> </level> <level label="2"> <level label="i"> <text>have a permanent office in the State from which an individual is licensed to practice certified public accountancy; or</text> </level> <level label="ii"> <text>have at least a simple majority of the officers, shareholders, members, or managers retain a principal place of business in this State;</text> </level> </level> <level label="3"> <text>hold a valid license issued under § 2–301 of this title; and</text> </level> <level label="4"> <text>comply with regulations adopted by the Board.</text> </level> </level> <level label="d"> <text>An individual who is not licensed to practice certified public accountancy in this State or another state may have an ownership interest in the corporation if:</text> <level label="1"> <text>a simple majority of the ownership of the corporation, in terms of financial interests and voting rights, is held by individuals licensed to practice certified public accountancy in this or another state;</text> </level> <level label="2"> <text>the individual is an active participant in the corporation or affiliated entities;</text> </level> <level label="3"> <text>the corporation submits to the Board the name of a licensee of this State, or, if applicable, a licensee of another state with a practice privilege in this State who is responsible for the registration of the corporation; and</text> </level> <level label="4"> <text>the corporation complies with any other requirements that the Board imposes.</text> </level> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-404" title_number="2" title_name="Accountants" subtitle_number="4" subtitle_name="Permits"> <level label="a"> <text>An applicant for a permit shall:</text> <level label="1"> <text>submit to the Board an application on the form that the Board provides; and</text> </level> <level label="2"> <text>pay to the Board a nonrefundable application fee set by the Board.</text> </level> </level> <level label="b"> <text>In addition to any other information required on an application form, the form shall require:</text> <level label="1"> <text>for a partnership applicant, a list of each partner who practices or who intends to practice certified public accountancy in the State;</text> </level> <level label="2"> <text>for a limited liability company, a list of each member who practices or who intends to practice certified public accountancy in the State; and</text> </level> <level label="3"> <text>for a corporate applicant, a list of all of the shareholders of the corporation.</text> </level> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-405" title_number="2" title_name="Accountants" subtitle_number="4" subtitle_name="Permits"> <level label="a"> <text>If an applicant qualifies for a permit under this subtitle, the Board shall mail or electronically transmit to the applicant a notice that states that:</text> <level label="1"> <text>the applicant has qualified for a permit; and</text> </level> <level label="2"> <text>on receipt of a permit fee set by the Board, the Board will issue a permit to the applicant.</text> </level> </level> <level label="b"> <text>On payment of the permit fee, the Board shall issue a permit to each applicant that meets the requirements of this subtitle.</text> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-406" title_number="2" title_name="Accountants" subtitle_number="4" subtitle_name="Permits"> <level label="a"> <text>Subject to subsection (b) of this section and while a permit is in effect, it authorizes the holder to:</text> <level label="1"> <text>operate a business through which an individual practices certified public accountancy; and</text> </level> <level label="2"> <text>represent to the public that the business provides the services of a licensed certified public accountant.</text> </level> </level> <level label="b"> <text>A permit authorizes the holder to provide a service that constitutes practicing certified public accountancy only if the service is performed by an individual who is licensed or otherwise authorized under this title to practice.</text> </level> <level label="c"> <text>A firm may use the title “CPA” or “CPA firm” without a permit issued under this section if the firm is performing other professional services that do not require a permit if:</text> <level label="1"> <text>the firm performs those services through an individual with a practice privilege under § 2–321 of this title; and</text> </level> <level label="2"> <text>the firm performs those services in the state where the individual with a practice privilege retains a principal place of business.</text> </level> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-407" title_number="2" title_name="Accountants" subtitle_number="4" subtitle_name="Permits"> <level label="a"> <text>Unless a permit is renewed for a 2–year term as provided in this section, the permit expires on the first December 31 that comes:</text> <level label="1"> <text>after the effective date of the permit; and</text> </level> <level label="2"> <text>in an even–numbered year.</text> </level> </level> <level label="b"> <level label="1"> <text>At least 1 month before a permit expires, the Board shall mail or electronically transmit to the permit holder:</text> <level label="i"> <text>a renewal application form; and</text> </level> <level label="ii"> <text>a notice that states:</text> <level label="1"> <text>the date on which the current permit expires; and</text> </level> <level label="2"> <text>the amount of the permit fee.</text> </level> </level> </level> <level label="2"> <text>If an electronic transmission under paragraph (1) of this subsection is returned to the Board as undeliverable, the Board shall mail to the permit holder, at the last known address of the permit holder, the materials required under paragraph (1) of this subsection within 10 business days of the date the Board received the notice that the electronic transmission was undeliverable.</text> </level> </level> <level label="c"> <text>Before a permit expires, the permit holder periodically may renew it for an additional 2–year term, if the holder:</text> <level label="1"> <text>otherwise is entitled to a permit;</text> </level> <level label="2"> <text>pays to the Board a permit fee set by the Board; and</text> </level> <level label="3"> <text>submits to the Board a renewal application on the form that the Board provides.</text> </level> </level> <level label="d"> <text>The Board shall renew the permit of each permit holder who meets the requirements of this section.</text> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-408" title_number="2" title_name="Accountants" subtitle_number="4" subtitle_name="Permits"> <level label="a"> <text>Within 1 month after the change or occurrence, a partnership that holds a permit shall give to the Board written notice of:</text> <level label="1"> <text>a change in the name of the partnership;</text> </level> <level label="2"> <text>the admission of any partner who practices or intends to practice certified public accountancy in the State;</text> </level> <level label="3"> <text>the death of any partner who practiced certified public accountancy in the State; and</text> </level> <level label="4"> <text>the withdrawal of any partner who practiced certified public accountancy in the State.</text> </level> </level> <level label="b"> <text>Within 1 month after the change or occurrence, a limited liability company that holds a permit shall give to the Board written notice of:</text> <level label="1"> <text>a change in the name of the limited liability company;</text> </level> <level label="2"> <text>the admission of any member who practices or intends to practice certified public accountancy in the State;</text> </level> <level label="3"> <text>the death of any member who practiced certified public accountancy in the State; and</text> </level> <level label="4"> <text>the withdrawal of any member who practiced certified public accountancy in the State.</text> </level> </level> <level label="c"> <text>Within 1 month after the change or occurrence, a corporation that holds a permit shall give to the Board written notice of:</text> <level label="1"> <text>a change in the name of the corporation;</text> </level> <level label="2"> <text>the death of any stockholder; and</text> </level> <level label="3"> <text>a change in stockholders.</text> </level> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-409" title_number="2" title_name="Accountants" subtitle_number="4" subtitle_name="Permits"> <text>The surviving partner of a partnership that holds a permit may use the partnership name for 1 year after the death of the next to the last partner.</text> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-410" title_number="2" title_name="Accountants" subtitle_number="4" subtitle_name="Permits"> <level label="a"> <text>Subject to the hearing provisions of § 2–412 of this subtitle, the Board, on the affirmative vote of a majority of its members, may deny a permit to any applicant, reprimand a permit holder, or suspend or revoke a permit:</text> <level label="1"> <text>for any applicable ground under § 2–315 of this title;</text> </level> <level label="2"> <text>if the applicant or permit holder fraudulently or deceptively obtains or attempts to obtain a permit;</text> </level> <level label="3"> <text>if the applicant or permit holder fraudulently or deceptively uses a permit;</text> </level> <level label="4"> <text>if the applicant or permit holder fails to meet or continue to meet the qualifications or requirements set forth under § 2–402 or § 2–403 of this subtitle; or</text> </level> <level label="5"> <text>if the applicant or permit holder has a partner, member, or corporate officer whose license has been suspended or revoked by the Board.</text> </level> </level> <level label="b"> <text>On suspension or revocation of a permit, the holder shall surrender to the Board the permit certificate of the holder.</text> </level> <level label="c"> <text>At the end of a suspension period, the Board shall return to the permit holder the permit certificate surrendered under this section.</text> </level> <level label="d"> <level label="1"> <text>Instead of or in addition to reprimanding the permit holder or suspending or revoking a permit under this subsection, the Board may impose a penalty not exceeding $5,000 for each violation.</text> </level> <level label="2"> <text>To determine the amount of the penalty imposed under this subsection, the Board shall consider:</text> <level label="i"> <text>the seriousness of the violation;</text> </level> <level label="ii"> <text>the harm caused by the violation;</text> </level> <level label="iii"> <text>the good faith of the permit holder; and</text> </level> <level label="iv"> <text>any history of previous violations by the permit holder.</text> </level> </level> </level> <level label="e"> <text>The Board shall pay any penalty collected under this subsection into the General Fund of the State.</text> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-411" title_number="2" title_name="Accountants" subtitle_number="4" subtitle_name="Permits"> <text>On its own initiative or on a written complaint made to the Board by any person, the Board may commence proceedings under § 2-410 of this subtitle.</text> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-412" title_number="2" title_name="Accountants" subtitle_number="4" subtitle_name="Permits"> <level label="a"> <text>Except as otherwise provided in § 10-226 of the State Government Article, before the Board takes any final action under § 2-410 of this subtitle, it shall give the person against whom the action is contemplated an opportunity for a hearing before the Board.</text> </level> <level label="b"> <text>The Board shall give notice and hold the hearing in accordance with Title 10, Subtitle 2 of the State Government Article.</text> </level> <level label="c"> <text>The Board may administer oaths in connection with any proceeding under this section.</text> </level> <level label="d"> <level label="1"> <text>The Board may issue a subpoena for the attendance of a witness to testify or the production of evidence in connection with any proceeding under this section.</text> </level> <level label="2"> <text>If a person fails to comply with a subpoena issued under this subsection, on petition of the Board, a circuit court may compel compliance with the subpoena.</text> </level> </level> <level label="e"> <text>If, after due notice, the person against whom the action is contemplated fails or refuses to appear, nevertheless the Board may hear and determine the matter.</text> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-413" title_number="2" title_name="Accountants" subtitle_number="4" subtitle_name="Permits"> <level label="a"> <level label="1"> <text>For the limited purpose set forth in paragraph (2) of this subsection, a permit shall remain in effect and may not expire by operation of law while the permit holder is under investigation by the Board or awaiting a hearing or disposition on charges subject to disciplinary action under this subtitle.</text> </level> <level label="2"> <text>Any extension of a permit term caused under this subsection is effective only for the purpose of retaining the jurisdiction of the Board over the permit holder during the course of disciplinary proceedings and does not prevent the permit from expiring for any other purpose.</text> </level> </level> <level label="b"> <text>Unless the Board agrees to accept the surrender, a permit holder may not surrender a permit while the holder is under investigation or awaiting a hearing or disposition on charges subject to disciplinary action under this subtitle.</text> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-414" title_number="2" title_name="Accountants" subtitle_number="4" subtitle_name="Permits"> <level label="a"> <text>Subject to the provisions of this section, the Board may reinstate:</text> <level label="1"> <text>any permit that has been revoked; or</text> </level> <level label="2"> <text>before fulfillment of the conditions of the suspension, any permit that has been suspended.</text> </level> </level> <level label="b"> <text>A permit may be reinstated under this section only if:</text> <level label="1"> <text>the partnership, limited liability company, or corporation whose permit has been revoked or suspended submits a written request to the Board;</text> </level> <level label="2"> <text>the Board holds a hearing on the request;</text> </level> <level label="3"> <text>the Board, by an affirmative vote of a majority of its members, votes to reinstate the permit; and</text> </level> <level label="4"> <text>the partnership, limited liability company, or corporation pays to the Board a reinstatement fee set by the Board.</text> </level> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-415" title_number="2" title_name="Accountants" subtitle_number="4" subtitle_name="Permits"> <text>After the Board issues a permit, the permit holder shall continue to comply with the respective requirements of § 2-402 or § 2-403 of this subtitle.</text> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-416" title_number="2" title_name="Accountants" subtitle_number="4" subtitle_name="Permits"> <text>In accordance with its regulations, the Board may reinstate the permit of a firm that has failed to renew the permit for any reason if the firm:</text> <level label="1"> <text>otherwise is entitled to a permit; and</text> </level> <level label="2"> <text>pays to the Board a reinstatement fee set by the Board.</text> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-4A-01" title_number="2" title_name="Accountants" subtitle_number="4A" subtitle_name="Peer Review"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Engagement review” means a peer review that evaluates whether there is a reasonable basis for expressing limited assurance that:</text> <level label="1"> <text>financial statements with which the individual or firm is associated conform in all material respects with professional standards; and</text> </level> <level label="2"> <text>reports and internal documentation of the work performed by the individual or firm conform with professional standards.</text> </level> </level> <level label="c"> <text>“Fail” means, in connection with a report of a peer reviewer, one or more significant deficiencies in performing or reporting in conformity with professional standards in the individual or the firm being reviewed.</text> </level> <level label="d"> <text>“Peer review” means a study, appraisal, or review of one or more aspects of the professional work of an individual or firm performed by a person licensed as a certified public accountant.</text> </level> <level label="e"> <text>“Report indicating pass with deficiencies” means a report of a peer reviewer that indicates one or more deficiencies in performing or reporting in conformity with professional standards in the individual or firm being reviewed.</text> </level> <level label="f"> <text>“Review” means the analysis of a financial statement that:</text> <level label="1"> <text>is performed in accordance with the Statements on Standards for Accounting and Review Services of the American Institute of Certified Public Accountants; and</text> </level> <level label="2"> <text>provides a licensee with a reasonable basis for expressing limited assurance that there are no material modifications that should be made to the statement in order for it to be in accordance with generally accepted accounting principles, or, if applicable, with any other comprehensive basis of accounting.</text> </level> </level> <level label="g"> <text>“System review” means a peer review evaluating whether there is reasonable assurance that:</text> <level label="1"> <text>the system of quality control of the individual or firm being reviewed is designed and operated in such a manner as to meet professional standards;</text> </level> <level label="2"> <text>financial statements with which the licensee or firm is associated conform in all material respects with professional standards; and</text> </level> <level label="3"> <text>reports and internal documentation of the work performed by the licensee or firm conform with professional standards.</text> </level> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-4A-02" title_number="2" title_name="Accountants" subtitle_number="4A" subtitle_name="Peer Review"> <level label="a"> <level label="1"> <text>A licensee or permit holder who performs any of the services described in § 2-4A-04 of this subtitle shall be required to undergo, at least once every 3 years, a peer review.</text> </level> <level label="2"> <text>The Board may modify the peer review requirement for a licensee or permit holder upon a showing of good cause.</text> </level> </level> <level label="b"> <text>A peer review shall be performed and recorded in accordance with standards no less stringent than those set forth in the standards for performing and reporting on peer reviews of the American Institute of Certified Public Accountants.</text> </level> <level label="c"> <text>The Board must approve a peer review program other than the peer review program of the American Institute of Certified Public Accountants prior to its use to satisfy the requirements of this section.</text> </level> <level label="d"> <text>A licensee or permit holder shall affirm under the penalties of perjury on a standard form provided by the Board compliance with the peer review requirement at the time of license or permit renewal.</text> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-4A-03" title_number="2" title_name="Accountants" subtitle_number="4A" subtitle_name="Peer Review"> <level label="a"> <text>A licensee or permit holder who provides services requiring peer review on or after October 1, 2005, shall comply with the peer review requirement within 3 years after initiating those services.</text> </level> <level label="b"> <text>A licensee or permit holder who provides services requiring a peer review and who submits a renewal application after October 1, 2008, shall affirm under the penalties of perjury on a standard form provided by the Board completion of the licensee or permit holder’s most recent peer review.</text> </level> <level label="c"> <text>If the 3-year period in subsection (a) of this section has not expired prior to the date of the license or permit renewal, and the licensee or permit holder has had no peer review within the last 3 years, the licensee or permit holder must notify the Board in writing within 30 days of the date the peer review is completed.</text> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-4A-04" title_number="2" title_name="Accountants" subtitle_number="4A" subtitle_name="Peer Review"> <level label="a"> <text>A system review is required for a licensee or permit holder that performs any of the following services:</text> <level label="1"> <text>engagements governed by the Statements on Auditing Standards of the American Institute of Certified Public Accountants; or</text> </level> <level label="2"> <text>engagements governed by the government auditing standards issued by the U.S. Government Accountability Office;</text> </level> <level label="3"> <text>examinations of prospective financial information under:</text> <level label="i"> <text>the Statements on Standards for Attestation Engagements of the American Institute of Certified Public Accountants; or</text> </level> <level label="ii"> <text>the government auditing standards issued by the U.S. Government Accountability Office; or</text> </level> </level> <level label="4"> <text>audits of issuers not registered with the U.S. Securities and Exchange Commission that are performed under standards of the Public Company Accounting Oversight Board.</text> </level> </level> <level label="b"> <text>An engagement review is required for a licensee or permit holder not required to have a system review that performs any of the following services:</text> <level label="1"> <text>review of historical financial statements in accordance with the Statements on Standards for Accounting and Review Services of the American Institute of Certified Public Accountants;</text> </level> <level label="2"> <text>compilation of historical financial statements with disclosures performed under the Statements on Standards for Accounting and Review Services of the American Institute of Certified Public Accountants;</text> </level> <level label="3"> <text>compilation of historical financial statements that omit substantially all disclosures performed under the Statements on Standards for Accounting and Review Services of the American Institute of Certified Public Accountants; or</text> </level> <level label="4"> <text>engagements performed under the Statements on Standards for Attestation Engagements of the American Institute of Certified Public Accountants other than the examination of prospective financial statements.</text> </level> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-4A-05" title_number="2" title_name="Accountants" subtitle_number="4A" subtitle_name="Peer Review"> <level label="a"> <text>Prior to conducting a peer review, an individual must be approved by the Board.</text> </level> <level label="b"> <text>In order to receive approval from the Board, a peer reviewer shall:</text> <level label="1"> <text>have and maintain an active license as a certified public accountant in this or any other state;</text> </level> <level label="2"> <text>possess a level of knowledge of applicable professional standards acceptable to the Board;</text> </level> <level label="3"> <text>possess at least 5 years recent experience in the practice of public accounting;</text> </level> <level label="4"> <text>have received a passing report on the most recent peer review of the prospective peer reviewer; and</text> </level> <level label="5"> <text>complete an appropriate training course as determined by the Board.</text> </level> </level> <level label="c"> <text>In order to serve as a team captain of a system review, a peer reviewer must have and maintain ownership or management of a firm or comparable responsibility.</text> </level> <level label="d"> <text>A peer reviewer shall have no connection to the licensee or permit holder being reviewed that might impair the peer reviewer’s independence.</text> </level> <level label="e"> <text>A peer reviewer shall:</text> <level label="1"> <text>prepare a report of findings in accordance with the standards for performing and reporting on peer reviews of the American Institute of Certified Public Accountants; and</text> </level> <level label="2"> <text>maintain the report for a period of 3 years.</text> </level> </level> <level label="f"> <text>A peer reviewer shall provide a copy of the report to the Board only if the licensee or permit holder being reviewed has:</text> <level label="1"> <text>been directed to take corrective action and has failed to satisfy the peer reviewer that such action has been completed in a timely manner;</text> </level> <level label="2"> <text>received a second consecutive report indicating pass with deficiencies; or</text> </level> <level label="3"> <text>received a failing report.</text> </level> </level> <level label="g"> <text>A peer reviewer shall comply with all Board regulations and directives regarding the peer review process.</text> </level> <level label="h"> <text>The Board may revoke its approval of a peer reviewer under this section if the peer reviewer:</text> <level label="1"> <text>violates any provision of this title;</text> </level> <level label="2"> <text>violates any regulation adopted by the Board; or</text> </level> <level label="3"> <text>is sanctioned by any state board of accountancy or any unit of State or federal government.</text> </level> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-4A-06" title_number="2" title_name="Accountants" subtitle_number="4A" subtitle_name="Peer Review"> <level label="a"> <text>Upon the receipt of a report from a peer reviewer, the Board shall review the report to determine what disciplinary or corrective action is appropriate.</text> </level> <level label="b"> <text>The Board may require a licensee or permit holder to:</text> <level label="1"> <text>undergo peer review more frequently than once every 3 years; and</text> </level> <level label="2"> <text>complete additional continuing professional education courses.</text> </level> </level> <level label="c"> <text>Prior to taking any final action under subsection (b) of this section, the Board shall give the licensee or permit holder against whom the action is contemplated an opportunity for a hearing before the Board.</text> </level> <level label="d"> <text>If the peer review report reveals evidence that the licensee or permit holder has engaged in conduct that is prohibited under § 2-315 or § 2-410 of this title, the Board may file formal charges against the licensee or permit holder.</text> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-501" title_number="2" title_name="Accountants" subtitle_number="5" subtitle_name="Miscellaneous Provisions"> <level label="a"> <level label="1"> <text>The Board may adopt regulations to:</text> <level label="i"> <text>require that each office maintained in the State for the practice of accounting by an individual accountant or partnership or corporate permit holder be registered every 2 years with the Board by the individual, partnership, or corporation; and</text> </level> <level label="ii"> <text>set the procedure to carry out the registration.</text> </level> </level> <level label="2"> <text>The Board may not charge a fee for any registration required under this section.</text> </level> </level> <level label="b"> <text>If a licensee or a permit holder fails to register any office as required by a regulation adopted under subsection (a) of this section, the license or permit shall:</text> <level label="1"> <text>be suspended automatically; and</text> </level> <level label="2"> <text>remain suspended until the licensee or permit holder complies with the registration requirements adopted under this section.</text> </level> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-502" title_number="2" title_name="Accountants" subtitle_number="5" subtitle_name="Miscellaneous Provisions"> <level label="a"> <text>In this section, “accountant’s document”:</text> <level label="1"> <text>means any of the following documents, if the document is prepared by an accountant in the course of professional service provided to a client:</text> <level label="i"> <text>a memorandum;</text> </level> <level label="ii"> <text>a record;</text> </level> <level label="iii"> <text>a schedule;</text> </level> <level label="iv"> <text>a statement; or</text> </level> <level label="v"> <text>a working paper; and</text> </level> </level> <level label="2"> <text>does not include any document provided by the client to the accountant.</text> </level> </level> <level label="b"> <text>Unless the client to whom an accountant’s document relates and the accountant expressly agree to the contrary, the accountant’s document is:</text> <level label="1"> <text>the property of the accountant who prepared it; or</text> </level> <level label="2"> <text>if the accountant is a partner or employee of an accounting firm, the property of the firm.</text> </level> </level> <level label="c"> <text>Unless the client or a personal representative or assignee of the client consents, an accountant who holds an accountant’s document that relates to a client may not give, sell, or otherwise transfer the accountant’s document to anyone other than a partner of the accountant.</text> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-601" title_number="2" title_name="Accountants" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties"> <text>Except as otherwise provided in this title:</text> <level label="1"> <text>a person may not practice, attempt to practice, or offer to practice certified public accountancy in the State unless licensed by the Board or qualified for a practice privilege under § 2–321 of this title; and</text> </level> <level label="2"> <text>a licensee on emeritus status under § 2–313.1 of this title may not:</text> <level label="i"> <text>practice, attempt to practice, or offer to practice certified public accountancy in the State;</text> </level> <level label="ii"> <text>sign or certify financial statements, tax returns, or audit reports; or</text> </level> <level label="iii"> <text>provide attestation services.</text> </level> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-602" title_number="2" title_name="Accountants" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties"> <text>Except for a licensed certified public accountant or an individual practicing under a practice privilege under § 2–321 of this title who operates a business as a sole practitioner, a person may not operate a business through which certified public accountancy is practiced, unless:</text> <level label="1"> <text>the business is a partnership, limited liability company, or corporation; and</text> </level> <level label="2"> <text>except as otherwise provided under § 2–401 of this title, the partnership, limited liability company, or corporation holds a permit issued by the Board.</text> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-603" title_number="2" title_name="Accountants" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties"> <level label="a"> <text>Subject to subsection (b) of this section and unless authorized under this title to practice certified public accountancy, a person may not represent to the public, by use of a title, including “licensed certified public accountant”, “certified public accountant”, “public accountant”, or “auditor”, by use of the abbreviation “CPA”, by description of services, methods, or procedures, or otherwise, that the person is authorized to practice certified public accountancy in the State.</text> </level> <level label="b"> <text>Subsection (a) of this section does not prohibit:</text> <level label="1"> <text>the description of a principal, officer, or employee of an organization by the position, title, or office that the individual holds in the organization;</text> </level> <level label="2"> <text>the description of a licensee who is on emeritus status under § 2–313.1 of this title, provided that the licensee does not represent to the public that the licensee is authorized to practice certified public accountancy in the State; or</text> </level> <level label="3"> <text>a partnership, limited liability company, or corporation that holds a permit or is exempt from the permit requirement under § 2–401 of this title from using, in connection with the name of the partnership, limited liability company, or corporation, any of the terms or the abbreviation to which subsection (a) of this section refers.</text> </level> </level> <level label="c"> <level label="1"> <level label="i"> <text>Except as provided in subparagraph (ii) of this paragraph, the display, distribution, or other use by a person of the person’s name, in conjunction with any of the following list of titles or abbreviations in a card, sign, advertisement, directory listing, or other instrument or device, is, in any proceeding under this title, prima facie evidence that the person represents to the public that the person is authorized to practice certified public accountancy:</text> <level label="1"> <text>“licensed certified public accountant”;</text> </level> <level label="2"> <text>“certified public accountant”;</text> </level> <level label="3"> <text>“public accountant”;</text> </level> <level label="4"> <text>“auditor”; or</text> </level> <level label="5"> <text>an abbreviation of any of these titles.</text> </level> </level> <level label="ii"> <text>A licensee who is on emeritus status under § 2–313.1 of this title may use the words “certified public accountant emeritus” or the abbreviation “CPA emeritus” to describe the occupation of the individual, provided that the licensee does not represent to the public that the licensee is authorized to practice certified public accountancy in the State.</text> </level> </level> <level label="2"> <text>In a proceeding under this title, evidence of a single representation described in paragraph (1) of this subsection is, without evidence of a general course of conduct, adequate to justify a finding that a person has represented to the public that the person is authorized to practice certified public accountancy in the State.</text> </level> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-604" title_number="2" title_name="Accountants" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties"> <level label="a"> <text>Subject to subsection (b) of this section and unless a person holds a permit issued by the Board or is otherwise authorized under this title to practice certified public accountancy, the person may not represent to the public, by use of a title, including “licensed certified public accountants”, “certified public accountants”, “public accountants”, or “auditors”, by use of the abbreviation “CPA”, by description of services, methods, or procedures, or otherwise, that the person holds a permit or otherwise is authorized to operate a business through which certified public accountancy is practiced in the State.</text> </level> <level label="b"> <text>Subsection (a) of this section does not apply to a licensed certified public accountant or an individual practicing under a practice privilege under § 2–321 of this title who operates the business as a sole practitioner.</text> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-605" title_number="2" title_name="Accountants" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties"> <level label="a"> <text>A person who violates any provision of this subtitle is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $500 or imprisonment not exceeding 6 months or both.</text> </level> <level label="b"> <level label="1"> <text>The Board may impose on a person who violates any provision of this subtitle a penalty not exceeding $5,000 for each violation.</text> </level> <level label="2"> <text>In setting the amount of the penalty, the Board shall consider:</text> <level label="i"> <text>the seriousness of the violation;</text> </level> <level label="ii"> <text>the harm caused by the violation;</text> </level> <level label="iii"> <text>the good faith of the violator;</text> </level> <level label="iv"> <text>any history of previous violations by the violator; and</text> </level> <level label="v"> <text>any other relevant factors.</text> </level> </level> <level label="3"> <text>The Board shall pay any penalty collected under this subsection into the General Fund of the State.</text> </level> </level> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-701" title_number="2" title_name="Accountants" subtitle_number="7" subtitle_name="Short Title; Termination of Title"> <text>This title may be cited as the “Maryland Public Accountancy Act”.</text> </section> <section article="gbo" article_name="Business Occupations and Professions" number="2-702" title_number="2" title_name="Accountants" subtitle_number="7" subtitle_name="Short Title; Termination of Title"> <text>Subject to the evaluation and reestablishment provisions of the Maryland Program Evaluation Act, this title and all regulations adopted under this title shall terminate and be of no effect after July 1, 2030.</text> </section>