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.
To qualify for a license, an applicant shall be an individual who meets the requirements of this section.
The applicant shall be of good character and reputation.
The applicant shall be at least 18 years old.
The applicant shall meet the educational requirements under § 2–303 of this subtitle.
Except as otherwise provided in this subtitle, the applicant shall pass an examination given by the Board under this subtitle.
The applicant for an initial license shall complete practical work experience that is approved by the Board and that:
is obtained over a period of:
not more than 6 years; and
not less than 1 year;
includes providing any type of service or advice involving the use of accounting, attest, management advisory, financial advisory, tax, or consulting skills;
is performed under the direction of:
a licensed certified public accountant; or
an appropriately qualified professional as determined by the Board;
is obtained through employment in government, industry, academia, or public practice; and
amounts to:
2,000 hours if the applicant seeks to qualify for a license under § 2–303(a)(2)(i) or (ii) of this subtitle; or
4,000 hours if the applicant seeks to qualify for a license under § 2–303(a)(2)(iii) of this subtitle.
In order to take the examination, an applicant shall hold a baccalaureate or higher degree that meets the requirements of this section.
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:
a master’s degree with a concentration in accounting or an equivalent of a concentration in accounting; and
not less than 1 year of practical work experience as described in § 2–302(f)(5)(i) of this subtitle;
a baccalaureate degree and an additional 30 semester credit hours with a concentration in accounting or an equivalent of a concentration in accounting; and
not less than 1 year of practical work experience as described in § 2–302(f)(5)(i) of this subtitle; or
a baccalaureate degree with a concentration in accounting or an equivalent of a concentration in accounting; and
not less than 2 years of practical work experience as described in § 2–302(f)(5)(ii) of this subtitle.
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:
a major in accounting; or
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.
The degree required under this section shall be awarded by a school, college, university, or other institution that:
is a member of the Association to Advance Collegiate Schools of Business;
is a member of the Accreditation Council for Business Schools and Programs;
is accredited by or is a constituent unit of an institution accredited by:
the Middle States Association of Colleges and Schools; or
the equivalent regional accrediting association for other regional areas; or
is recognized and approved by the Board.
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.
If the Board uses an institution to determine curriculum equivalencies, the Board may accept as final the determination of that institution.
An applicant for a license shall:
submit to the Board an application on the form that the Board provides; and
pay to the Board or the Board’s designee:
a nonrefundable application fee set by the Board; and
an examination fee set by the Board in an amount not to exceed the cost of the required examination.
An applicant who meets the educational requirements established by the Board is entitled to be examined as provided in this section.
The Board shall give examinations to applicants at least twice a year, at the times and places that the Board determines.
The Board shall give each qualified applicant notice of the time and place of examination.
The Board shall give the examination prepared by the American Institute of Certified Public Accountants or an equivalent examination as determined by the Board.
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.
The Board may use the services of any person whom the Board considers appropriate to proctor an examination.
The Board shall adopt regulations that establish the passing score for an examination.
The Board shall mail or electronically transmit to each applicant notice of the applicant’s examination score.
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.
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.
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.
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:
be given credit for that part; and
be reexamined only in the remaining parts.
Subject to the provisions of this section, an applicant who fails an examination given under § 2-305 of this subtitle may retake the examination.
Subject to the provisions of this subsection, the Board may not limit the number of times that an applicant may take an examination.
The Board may adopt regulations to set conditions for retaking examinations, including requirements that an applicant:
wait a reasonable period between examinations; and
prepare for reexamination in a manner specified by the Board.
An applicant for reexamination shall:
submit to the Board an application for reexamination on the form that the Board provides; and
pay to the Board or the Board’s designee a reexamination fee set under this subsection.
The Board shall set fees for reexamination so that:
the fee for reexamination on the entire examination does not exceed the cost of the required reexamination; and
the fee for reexamination on less than the entire examination is less than the fee set for the entire examination.
Subject to the provisions of this section, the Board may waive any examination requirement of this subtitle for:
a certified public accountant licensed by another state; or
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.
The Board may grant a waiver under this section only if the applicant:
is of good character and reputation;
is at least 18 years of age;
pays to the Board:
a nonrefundable application fee set by the Board; and
a license fee set by the Board; and
provides adequate evidence that the applicant has met educational, examination, and experience requirements that are:
substantially equivalent to those required by the laws of this State;
substantially equivalent to those required by the laws of the State at the time the applicant was licensed in another state; or
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.
For the purposes of this subtitle, “substantial equivalency” means a determination made by the Board or its designee that:
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
an individual’s education, examination, and experience are comparable to or exceed the education, examination, and experience requirements contained in the Uniform Accountancy Act.
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.
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:
the applicant has qualified for a license; and
on receipt of a license fee set by the Board, the Board will issue a license to the applicant.
On payment of the license fee, the Board shall issue a license to each applicant who meets the requirements of this subtitle.
This subsection does not apply to a certified public accountant who is on emeritus status under § 2–313.1 of this subtitle.
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:
after the effective date of the license; and
in an even–numbered year.
At least 1 month before a license expires, the Board shall mail or electronically transmit to the licensee:
a renewal application form; and
a notice that states:
the date on which the current license expires; and
the amount of the license fee.
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.
Before a license expires, the licensee periodically may renew it for an additional 2–year term, if the licensee:
otherwise is entitled to be licensed;
pays to the Board a license fee set by the Board; and
submits to the Board:
a renewal application on the form that the Board provides; and
satisfactory evidence of compliance with the continuing education requirements set under this subtitle for license renewal.
The Board shall renew the license of each licensee who meets the requirements of this section.
The Secretary may determine that licenses issued under this subtitle shall expire on a staggered basis.
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.
A continuing education requirement does not apply to the first renewal of a license.
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.
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.
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.
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.
The Board shall set continuing education requirements under this section:
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;
to provide for programs in the various specialized areas of accountancy in which certified public accountants practice;
to provide a licensee with alternative ways by which to qualify through a variety of programs, which may include:
professional development programs;
technical sessions of professional societies or chapters;
college courses;
formal, organized, in–firm educational programs of certified public accounting firms;
seminars provided by governmental units; and
other seminars or symposiums related to the practice of accountancy; and
to ensure that the programs approved for compliance with the continuing education requirements are available at reasonable intervals throughout the State.
The Board may appoint a continuing education committee to help the Board in carrying out this section.
Each member of a continuing education committee shall be a licensed certified public accountant.
A continuing education committee shall have the duties that the Board assigns.
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.
The Board may enter into written agreements with qualified persons wishing to conduct approved programs.
A person seeking approval by the Board for this purpose shall:
submit to the Board an application on the form that the Board provides; and
pay a continuing education provider fee set by the Board.
Agreements entered into under this section shall expire on April 30 of each even–numbered year.
The Board shall place a licensee on inactive status and issue an inactive status certificate to the licensee, if the licensee:
submits to the Board an application for inactive status on the form that the Board provides;
pays to the Board an inactive status fee set by the Board; and
except for the continuing education requirements set under § 2–312 of this subtitle, qualifies for an active license.
A licensee on inactive status may not practice certified public accountancy in the State.
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:
after the inactive status certificate is issued to the licensee; and
in an even–numbered year.
At least 1 month before the inactive status of a licensee expires, the Board shall mail or electronically transmit to the licensee:
a renewal application form; and
a notice that states:
the date on which the inactive status expires; and
the amount of the inactive status fee.
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.
Before an inactive status expires, the licensee periodically may renew it for an additional 2–year term, if the licensee:
otherwise is entitled to be placed on inactive status;
pays to the Board an inactive status fee set by the Board; and
submits to the Board a renewal application on the form that the Board provides.
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:
otherwise is entitled to be placed on inactive status;
pays to the Board an inactive status fee set by the Board; and
reapplies to the Board for inactive status within 2 years after initial expiration of inactive status on a form that the Board provides.
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.
The Board shall reactivate the license of a licensee who is on inactive status, if the licensee:
complies with each continuing education requirement that the Board sets for this purpose;
submits to the Board an application for reactivation; and
pays to the Board a reactivation fee that is equal to the license fee set by the Board under § 2–311 of this subtitle.
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.
The Board shall place a licensee on emeritus status if the individual:
has an active or inactive license to practice certified public accountancy under this subtitle;
is not under investigation by the Board for a violation of this title;
is not the subject of a pending disciplinary action related to the practice of certified public accountancy in the State or another state;
has practiced public accountancy in the State for at least 20 years; and
is at least 60 years old; or
has at least 40 years of experience as a certified public accountant; and
attests that:
the individual is retired and is no longer actively practicing public accountancy in the State; and
the individual will not provide certified public accountancy services unless reinstated in accordance with § 2–314 of this subtitle.
The Board shall review an application submitted under this section within 60 days of receipt of the application.
If the Board approves an application for emeritus status under this section, the Board shall send the licensee:
written notice of the approval; and
a certificate of emeritus status.
A licensee on emeritus status is exempt from:
the continuing education requirements under § 2–312 of this subtitle; and
the reinstatement fee under § 2–314 of this subtitle.
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:
otherwise is entitled to be licensed;
except as provided under § 2–313.1 of this subtitle, complies with each continuing education requirement that the Board sets for this purpose; and
except as provided under § 2–313.1 of this subtitle, pays to the Board a reinstatement fee set by the Board.
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:
fraudulently or deceptively obtains or attempts to obtain a license for the applicant or licensee or for another;
fraudulently or deceptively uses a license;
under the laws of the United States or of any state, is convicted of:
a felony; or
a misdemeanor that is directly related to the fitness and qualification of the applicant or licensee to practice certified public accountancy;
is guilty of fraud or other dishonesty in the practice of accountancy;
is guilty of gross negligence in the practice of accountancy;
violates any provision of Subtitle 6 of this title;
has had the right to practice as a certified public accountant in another state denied, revoked, or suspended;
has been sanctioned in another state in a matter relating to the practice of public accountancy;
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;
has had the right to practice as a certified public accountant before any unit of the State or federal government revoked or suspended;
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
violates a rule of professional conduct adopted by the Board.
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.
To determine the amount of the penalty imposed under this subsection, the Board shall consider:
the seriousness of the violation;
the harm caused by the violation;
the good faith of the licensee; and
any history of previous violations by the licensee.
The Board shall pay any penalty collected under this subsection into the General Fund of the State.
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:
the nature of the crime;
the relationship of the crime to the activities authorized by the license;
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;
the length of time since the conviction; and
the behavior and activities of the applicant or licensee before and after the conviction.
On suspension or revocation of a license, the holder shall surrender to the Board the license certificate of the holder.
At the end of a suspension period, the Board shall return to the licensee the license certificate surrendered under this section.
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.
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.
The Board shall give notice and hold the hearing in accordance with Title 10, Subtitle 2 of the State Government Article.
The Board may administer oaths in connection with any proceeding under this section.
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.
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.
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.
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.
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.
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.
Subject to the provisions of this section, the Board may reinstate:
any license that has been revoked; or
before fulfillment of the conditions of the suspension, any license that has been suspended.
A license may be reinstated under this section only if:
the individual whose license has been revoked or suspended submits a written request to the Board;
the Board holds a hearing on the request;
the Board, by an affirmative vote of a majority of its members, votes to reinstate the license; and
the individual pays to the Board a reinstatement fee set by the Board.
In this section, “practice certified public accountancy” includes the practice of public accountancy.
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:
holds a valid license as a certified public accountant from another state; and
was required to pass the Uniform CPA Examination to qualify for the license in the other state.
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.
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:
by any means, including mail, telephone, or electronic communication; and
without any notice, fee, or other submission to the Board.
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:
the personal and subject matter jurisdiction and disciplinary authority of the Board;
complying with State public accountancy laws and regulations adopted by the Board;
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
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.
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.
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.