AN ACT clarifying various provisions under the laws pertaining to certified public accountants and allowing public accountants certified or licensed outside this state to practice in this state under certain circumstances.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 93‑1(a)(3) reads as rewritten:
"(a)	Definitions. – As used in this Chapter certain terms are defined as follows:
…
(3)	A "certified public accountant" is a person who holds a certificate as a certified public accountant issued under the provisions of this Chapter.
…."
SECTION 2.  G.S. 93‑3 reads as rewritten:
"§ 93‑3.  Unlawful use of title "certified public accountant" by individual.
It shall be unlawful for any person who has not received a certificate of qualification or not been granted a practice privilege under G.S. 93‑10 admitting the person to practice as a certified public accountant to assume or use such a title, or to use any words, letters, abbreviations, symbols or other means of identification to indicate that the person using same has been admitted to practice as a certified public accountant."
SECTION 3.  G.S. 93‑4 reads as rewritten:
"§ 93‑4.  Use of title by firm.
It shall be unlawful for any firm, copartnership, or association to assume or use the title of certified public accountant, or to use any words, letters, abbreviations, symbols or other means of identification to indicate that the members of such firm, copartnership or association have been admitted to practice as certified public accountants, unless each of the members of such firm, copartnership or association first shall have received a certificate of qualification from the State Board of Certified Public Accountant Examiners or been granted a practice privilege admitting each member of the firm, copartnership, or association to practice as a certified public accountant; provided, however, that the Board may exempt those persons who do not  actually practice in or reside in the State of North Carolina from registering and receiving a certificate of qualification under this section."
SECTION 4.  G.S. 93‑10 reads as rewritten:
"§ 93‑10.  Practice privileges.
(a)	An individual whose principal place of business is outside this State is granted the privilege to perform or offer to perform services, whether in person or by mail, telephone, or electronic means, in this State as a certified public accountant without notice to the Board, the submission of any other documentation, or the payment of any fee if the individual meets all of the following conditions:
(1)	Holds a valid and unrevoked certificate as a certified public accountant, or its equivalent, issued by another state, a territory of the United States, or the District of Columbia.
(2)	Holds a valid and unrevoked license or permit to practice as a certified public accountant issued by another state, a territory of the United States, or the District of Columbia.
(3)	Has passed The Uniform CPA Examination.
(4)	Has not been convicted of a felony under the laws of the United States, any state, a territory of the United States, or the District of Columbia and has never been convicted of a crime, an essential element of which is dishonesty, deceit, or fraud unless the jurisdiction in which the individual is licensed has determined the felony or other crime has no effect on the individual's license.
		
(b)	An individual who satisfies the requirements of subsection (a) of this section and exercises the privilege afforded under this section by performing or offering to perform services as a certified public accountant in this State simultaneously consents as a condition of the grant of this privilege to:
(1)	Comply with the laws of this State, the provisions of this Chapter, and rules adopted by the Board.
(2)	Have an administrative notice of hearing served on the licensing board in the individual's principal state of business, notwithstanding the individual notice requirements of G.S. 150B‑38.
(3)	Be subject to personal jurisdiction, subject matter jurisdiction, and disciplinary authority of the Board.
(c)	A firm whose principal place of business is outside this State and has no office in this State is granted the privilege to perform or offer to perform services, whether in person or by mail, telephone, or electronic means, in this State as a firm without notice to the Board, submission of any other documentation, or payment of any fee, except as otherwise provided in subdivision (3) of this subsection. A firm that exercises the privilege afforded under this section simultaneously consents as a condition of the grant of the privilege to:
(1)	Comply with the laws of this State, the provisions of this Chapter, and rules adopted by the Board.
(2)	Be subject to personal jurisdiction, subject matter jurisdiction, and disciplinary authority of the Board.
(3)	Provide notice without a fee to the Board if any individual with the firm who has been granted privileges in North Carolina to practice as a certified public accountant performs any of the following services for a client in this State:
a.	A financial statement audit or other engagement performed in accordance with the Statements on Auditing Standards.
b.	An examination of prospective financial information performed in accordance with the Statements on Standards for Attestation Engagements.
c.	An engagement performed in accordance with the Public Company Accounting Oversight Board auditing standards."
SECTION 5.  G.S. 93‑12(9) reads as rewritten:
"(9)	Adoption of Rules of Professional Conduct; Disciplinary Action. – The Board shall have the power to adopt rules of professional ethics and conduct to be observed by certified public accountants in this State and persons exercising the practice privilege authorized by this Chapter. The Board shall have the power to revoke, either permanently or for a specified period, any certificate issued under the provisions of this Chapter to a certified public accountant or any practice privilege authorized by the provisions of this Chapter or to censure the holder of any such certificate or person exercising the practice privilege authorized by this Chapter. The Board also shall have the power to assess a civil penalty not to exceed one thousand dollars ($1,000) for any one or combination of the following causes:
a.	Conviction of a felony under the laws of the United States or of any state of the United States.
b.	Conviction of any crime, an essential element of which is dishonesty, deceit or fraud.
c.	Fraud or deceit in obtaining a certificate as a certified public accountant.
d.	Dishonesty, fraud or gross negligence in the public practice of accountancy.
e.	Violation of any rule of professional ethics and professional conduct adopted by the Board.
Any disciplinary action taken shall be in accordance with the provisions of Chapter 150B of the General Statutes. The clear proceeds of any civil penalty assessed under this section shall be remitted to the Civil Penalty and Forfeiture Fund in accordance with G.S. 115C‑457.2."
SECTION 6.  This act is effective when it becomes law.
In the General Assembly read three times and ratified this the 16th day of July, 2009.

	s/	 Walter H. Dalton
	 President of the Senate

	s/	 Joe Hackney
	 Speaker of the House of Representatives

	s/	 Beverly E. Perdue
	 Governor

Approved 9:19 a.m. this 27th day of July, 2009