PROPOSED RULES
Original Notice.
Preproposal statement of inquiry was filed as WSR 99-23-061.
Title of Rule: WAC 4-25-781 What are the rules governing reciprocity for accountants from foreign countries? WAC 4-25-782 How do I apply for an initial Washington state license and/or certificate through foreign reciprocity? and WAC 4-25-783 How do I renew a Washington CPA certificate and/or license granted through foreign reciprocity?
Purpose: To prescribe the procedures the board will follow when designating a professional accounting credential issued in a foreign country as substantially equivalent to a Washington CPA certificate.
Statutory Authority for Adoption: RCW 18.04.055 and 18.04.183.
Statute Being Implemented: RCW 18.04.183.
Summary: Lists the requirements for issuance of an initial Washington CPA certificate and/or license to practice public accounting by reciprocity to accountants from foreign counties and the requirements for renewal of a CPA license and/or certificate based on a foreign accounting credential.
Reasons Supporting Proposal: To promote clarity, ensure effective communication, and ensure fairness in interpretation and application of the rules, and promote efficiencies through minimizing gray areas.
Name of Agency Personnel Responsible for Drafting, Implementation and Enforcement: Dana M. McInturff, CPA, 210 East Union, Suite A, Olympia, (360) 586-0163.
Name of Proponent: Board of Accountancy, governmental.
Rule is not necessitated by federal law, federal or state court decision.
Explanation of Rule, its Purpose, and Anticipated Effects: RCW 18.04.183 directs the board to grant a license and/or certificate as a certified public accountant (CPA) to a holder of a permit, license, or certificate issued by a foreign country's board, agency or institute. Using the clear rule-writing technique that eliminates confusion, the new rules implement the statute by listing the qualifications the board will accept before issuing an initial CPA license and/or certificate to an accountant from a foreign country, the procedures for applying for a Washington state license and/or certificate through foreign reciprocity and the procedures for renewal of a license and/or certificate based in part on a foreign accounting credential.
Proposal Changes the Following Existing Rules: The board is proposing to replace WAC 4-25-780 Reciprocity for accountants from foreign countries, with three new separate rules, WAC 4-25-781, 4-25-782, and 4-25-783 addressing: General, initial application, and renewal requirements. The new section also:
1. Eliminates sections of WAC 4-25-780 that could appear inequitable (domestic vs. foreign reciprocity):
a. Notice that the board will notify foreign credentialing bodies of any sanctions imposed against a CPA whose certificate was issued through foreign reciprocity - standard board practice for all CPAs.
b. Notice that the board may participate in joint investigations with foreign accounting credentialing bodies - standard board practice concerning investigations regarding all CPAs.
2. Eliminates information regarding discipline of a CPA's foreign accounting credential by the foreign credentialing body as basis for board disciplinary action - moving to another board rule (WAC 4-25-910).
No small business economic impact statement has been prepared under chapter 19.85 RCW. The proposed rule will not have more than minor economic impact on business.
RCW 34.05.328 does not apply to this rule adoption. The Board of Accountancy is not one of the agencies required to submit to the requirements of RCW 34.05.328.
Hearing Location: Wyndham Garden Hotel -- SeaTac, 18118 Pacific Highway South, SeaTac, WA 98188, on April 28, 2000, at 9:30 a.m.
Assistance for Persons with Disabilities: Contact Cheryl Sexton by April 21, 2000, TDD (800) 833-6384, or (360) 664-9194.
Submit Written Comments to: Dana M. McInturff, P.O. Box 9131, Olympia, WA 98507-9131, fax (360) 664-9190, by April 26, 2000.
Date of Intended Adoption: April 28, 2000.
February 25, 2000
Dana M. McInturff, CPA
Executive Director
OTS-3850.1
NEW SECTION
WAC 4-25-781
What are the rules governing reciprocity for
accountants from foreign countries?
(1) Under the authority provided by RCW 18.04.183, the board may rely on the National Association of State Boards of Accountancy, the American Institute of Certified Public Accountants, or other professional bodies for evaluation of foreign accounting credential equivalency.
(2) The board may accept your foreign accounting credential in partial satisfaction of CPA certification requirements if:
(a) You met the foreign issuing body's education and examination requirements used to qualify its domestic candidates;
(b) Your foreign accounting credential is valid and in good standing at the time you apply for a Washington state CPA license and/or certificate; and
(c) The foreign issuing body granting your foreign accounting credential permits Washington CPAs an equivalent opportunity to receive the foreign accounting credential by reciprocity.
The board will, by policy, identify acceptable foreign accounting credentials and acknowledge reciprocal agreements with bodies granting foreign accounting credentials.
(3) The board may require a qualifying examination(s) to determine if you possess adequate knowledge of U.S. practice standards and the board's regulations. The board will, by policy, specify the form of qualifying examination(s) and passing grade(s).
(4) The board will require you to demonstrate satisfactory experience in a foreign or domestic professional accounting firm. The board will, by policy, specify experience standards for each foreign accounting credential accepted by the board.
(5) If you hold a Washington state CPA license and/or certificate issued through foreign reciprocity, you must report any investigations undertaken, or sanctions imposed, by a foreign credentialing body against your foreign credential within thirty days of your receiving notice that an investigation has begun or a sanction was imposed.
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OTS-3851.2
NEW SECTION
WAC 4-25-782
How do I apply for an initial Washington
state license and/or certificate through foreign reciprocity?
(1) Pursuant to RCW 18.04.183 the board may issue a certificate and/or license if you meet the board's requirements for application through foreign reciprocity. To apply for an initial Washington state CPA license and/or certificate you must use the foreign reciprocity application form provided by the board and satisfy continuing professional education (CPE) requirements in WAC 4-25-830.
(2) You need to fully complete the form, have your signature notarized or the foreign equivalent of a notarization, and submit the form, all applicable fees, and all required documentation to the board's office.
(3) An application is not complete and cannot be processed until all fees, required information, and required documentation are received by the board. When the processing of your application is complete, notification will be mailed to the last address you provided to the board.
(4) Your Washington state CPA license and/or certificate will expire on June 30 of the third calendar year following initial licensure and/or certification.
(5) You may not use the title CPA and you may not hold out as a CPA in public practice until you have filed a complete application with the board. A licensee may only practice public accountancy in a licensed CPA firm licensed by the Washington state board of accountancy.
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OTS-3852.1
NEW SECTION
WAC 4-25-783
How do I renew a Washington CPA certificate
and/or license granted through foreign reciprocity?
To renew a CPA certificate originally issued in reliance on a foreign professional accounting credential, you must:
(1) Submit an application for renewal, including appropriate fees and documentation, at the time and in the same manner prescribed for all Washington state CPAs; and
(2) Submit documentation from the foreign issuing body certifying:
(a) Your foreign credential is in good standing and valid for the practice of public accountancy in the foreign jurisdiction; and
(b) You are not currently under disciplinary investigation or action; or
(c) If you are currently under disciplinary investigation or action, a statement as to the nature of the allegations.
(3) If you no longer hold the foreign credential used to qualify for a Washington state CPA license and/or certificate, you must submit documentation from the foreign issuing body certifying that you were not the subject of any investigations or disciplinary proceedings at the time the foreign credential lapsed.
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