“doing our part”

MOBILITY LAW SIGNED BY GOVERNOR
[view the draft law – version 10 ]

The State Board has submitted a proposed law to the State Legislature, to enact mobility provisions, as many other states have already done. This move to eliminating duplicative registrations is underway across the country. It makes serving clients in other states easier, because it enables client service without duplicate registrations. Such changes have already made it possible for North Dakota CPAs to practice in those states without repeating registration processes they already completed here in North Dakota. To date, 28 states have enacted mobility legislation, including our neighbor Minnesota. Similar legislative work is anticipated in numerous other states this year, including South Dakota and Montana. With this bill, we will be “doing our part” in this national movement. This “driver’s license” approach will then be available for CPAs from states with requirements substantially equivalent to the Uniform Accounting Act, or CPAs who personally hold such equivalency status.

In the past, firms were certainly free to practice in North Dakota, but were expected to license their individual personnel and their firm. This involves applications, approvals, and fees -- which repeat similar procedures already required by the home state. With each state that implements this legislation, yet another state becomes accessible to North Dakota CPAs without the second layer of paperwork. The concept resembles a driver’s license. With your state license, you simply keep right on driving, from state to state. There’s no need to stop and apply for another permit, supply an education transcript, or pay another fee. The bill’s wording specifies that by working here under substantial equivalency, the CPA and the CPA’s firm agree to N.D. jurisdiction and discipline authority. Language is also added to state that if a CPA loses home-state licensure, they’ll stop offering services here.

Another change included in the bill was to eliminate firm permits for visiting firms. For firms based in North Dakota, a firm permit will continue to be required (the fee has already been reduced to just $10). Various definition edits are included in the bill, and the methods for obtaining reciprocity are changed to either substantial equivalency qualification, or experience. Current language is deleted – requiring similar treatment by the home state, having to meet score rules in place at the time of original certification, or meeting either current or then-in-effect certification requirements. A grade change reference is also deleted.

A state task force has worked on developing this bill. The group included members of the State Board, the CPA Society, and the N.D. Society of Accountants. The group used a law firm in crafting the language.  

SYNOPSIS OF CHANGES

• CPAs from substantially equivalent states can work here, without duplicate registrations.
• Disciplinary matters are reworded. By working here under substantial equivalency, both the CPA and firm agree to N.D. Board discipline authority. If the CPA loses home-state licensure, they are to stop working here.
• Firm permits are not required for out-of-state firms. They will continue to be required for in-state firms of all sizes. It had earlier been planned to eliminate the permit for sole practitioners.
• Various definition edits are included, and an exam grade reference is deleted.
• There will be two ways to obtain a reciprocal certification -- substantial equivalency or experience (plus hold a certificate from another state). Various current language is removed.

 … Jim Abbott