The bill amends the public accountancy act in Washington State, focusing on the licensing and regulation of certified public accountants (CPAs). Key changes include the transition of current certificate holders to inactive CPA licenses by June 30, 2024, and the introduction of a "practice privilege" provision that allows certain out-of-state CPAs to practice in Washington under specific conditions. The bill also updates the qualifications for obtaining a CPA license, including educational standards, examination requirements, and experience criteria, while emphasizing ethical conduct and competency among licensees. Additionally, it clarifies the roles of the board of accountancy and the processes for maintaining and activating licenses, prohibiting individuals with inactive licenses from practicing public accounting.

Further amendments streamline the licensing process for CPA firms, requiring a simple majority of ownership to hold valid licenses or be licensees from other states. The bill mandates that nonlicensee owners meet ethics examination and continuing professional education (CPE) requirements, and it specifies that licensed firms must notify the board of any changes in ownership or sanctions. It also clarifies the use of titles such as "CPA" and establishes that individuals with practice privileges from other states are considered to have substantial equivalency to Washington's licensing requirements. The bill enhances the regulatory framework governing public accounting practices, ensuring compliance with ethical standards while allowing qualified professionals from other jurisdictions to provide services without obtaining a local license.

Statutes affected:
Original Bill: 18.04.015, 18.04.025, 18.04.105, 18.04.180, 18.04.183, 18.04.195, 18.04.205, 18.04.215, 18.04.295, 18.04.345, 18.04.350, 18.04.390, 18.04.405, 18.04.430