HB148: HB148 Public Accountancy Act of 2025; enact

25 LC 55 0431/AP House Bill 148 (AS PASSED HOUSE AND SENATE) By: Representatives Carson of the 46 th, Wilkerson of the 38 th, Williamson of the 112 th, Powell of the 33rd, Blackmon of the 146th, and others A BILL TO BE ENTITLED AN ACT To amend Chapter 3 of Title 43 of the Official Code of Georgia Annotated, relating to1 accountants, so as to revise provisions relating to the education and experience requirements2 of certified public accountants; to revise provisions relating to licensure of firms practicing3 public accountancy; to revise provisions relating to reciprocity; to conform terminology; to4 amend Article 1 of Chapter 81 of Title 36 of the Official Code of Georgia Annotated, relating5 to local government budget and audits, so as to conform a cross -reference; to provide for6 related matters; to provide an effective date; to repeal confli cting laws; and for other7 purposes.8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:9 PART I10 SECTION 1-1.11 Chapter 3 of Title 43 of the Official Code of Georgia Annotated, relating to accountants, is12 amended by revising Code Section 43-3-1, relating to short title, as follows:13 H. B. 148 - 1 - 25 LC 55 0431/AP "43-3-1.14 This chapter shall be known and may be cited as the 'Public Acc ountancy Act of 201415 2025.'"16 SECTION 1-2.17 Said chapter is further amended in Code Section 43-3-9, relatin g to requirements for18 certificate of certified public accountant and disclosure of co mmissions from sale of19 insurance or financial products, by revising subsection (b) as follows:20 "(b) The certificate of certified public accountant shall be gr anted by the board to any21 individual:22 (1) Who has attained the age of 18;23 (2) Who is, in the opinion of the board, of good moral character;24 (3) Who meets the following requirements of education and experience described in any25 one of the following subparagraphs:26 (A)(i) Presentation to the board of such evidence as it may require that the applicant27 has received a baccalaureate degree or completed the requirements therefor, conferred28 by a college or university accredited by a national or regional accrediting organization29 recognized by the board, by successfully completing at such college or university a30 program of study that consists of not fewer than 150 semester h ours, or equivalent31 quarter credit hours, with a concentration in accounting or what the board determines32 to be the substantial equivalent of comparable to an accounting concentration, or with33 a nonaccounting concentration supplemented by what the board determines to be the34 substantial equivalent of comparable to an accounting concentration, including related35 courses in other areas of business administration.36 (ii) After January 1, 1998, any individual who has not previously sat for the uniform37 written examination for the certificate of certified public acc ountant must have38 completed a total of 150 semester hours or 225 quarter hours of college education,39 H. B. 148 - 2 - 25 LC 55 0431/AP including a baccalaureate degree awarded by a college or univer sity accredited by40 either a national or regional accrediting organization recognized by the board. The41 total educational program shall include an undergraduate accoun ting concentration42 as defined by the board or what the board determines to be the substantial equivalent43 of an undergraduate accounting concentration; and44 (B)(ii) One year of continuous experi ence in the accounting field rel evant to the45 practice of public accountancy immediately preceding the date of application for the46 certificate or within a reasonable time prior to the date of such application as provided47 by the board by rule or regulation; provided, however, that the board may promulgate48 rules or regulations stating certain circumstances which shall constitute acceptable49 breaks in the continuity of such experience; provided, further, that the board may50 accept, in lieu of such year of experience in public accounting, evidence satisfactory51 to it of one year o f continuous em ployment in the accounting fi eld in industry,52 business, government, or college teaching; any combination of employment in such53 fields; or any combination of employment in such fields and the practice of public54 accountancy immediately preceding the date of application for the certificate or what55 the board determines to be the equivalent thereof; and provided , further, that any56 individual certificated as a certified public accountant under the laws of this state on57 July 1, 1977, shall be deemed to have the experience in the pra ctice of public58 accountancy required by this subparagraph; and59 (B)(i) Presentation to the board of such evidence as it may require that the applicant60 has received a master's degree or completed the requirements therefor, conferred by61 a college or university accredited by a national or regional accrediting organization62 recognized by the board, with a concentration in accounting or taxation or what the63 board determines to be comparable to an accounting or taxation concentration, or with64 a nonaccounting concentration supplemented by what the board de termines to be65 H. B. 148 - 3 - 25 LC 55 0431/AP comparable to an accounting or taxation concentration, including related courses in66 other areas of business administration; and67 (ii) One year of continuous experience in the accounting field relevant to the practice68 of public accountancy immediately preceding the date of application for the certificate69 or within a reasonable time prior to the date of such applicati on as provided by the70 board by rule or regulation; provided, however, that the board may promulgate rules71 or regulations stating certain circumstances which shall constitute acceptable breaks72 in the continuity of such experience; provided, further, that the board may accept, in73 lieu of such year of experience in public accounting, evidence satisfactory to it of one74 year of continuous employment in the accounting field in indust ry, business,75 government, or college teaching; any combination of employment in such fields; or76 any combination of employment in such fields and the practice of public accountancy77 immediately preceding the date of application for the certifica te or what the board78 determines to be the equivalent thereof; or79 (C)(i) Presentation to the board of such evidence as it may require that the applicant80 has received a baccalaureate degree or completed the requirements therefor, conferred81 by a college or university accredited by a national or regional accrediting organization82 recognized by the board, with a concentration in accounting or what the board83 determines to be comparable to an accounting concentration, or with a nonaccounting84 concentration supplemented by what the board determines to be c omparable to an85 accounting concentration, including related courses in other ar eas of business86 administration; and87 (ii) Two years of c ontinuous experi ence in the accounting fiel d relevant to the88 practice of public accountancy immediately preceding the date of application for the89 certificate or within a reasonable time prior to the date of such application as provided90 by the board by rule or regulation; provided, however, that the board may promulgate91 rules or regulations stating certain circumstances which shall constitute acceptable92 H. B. 148 - 4 - 25 LC 55 0431/AP breaks in the continuity of such experience; provided, further, that the board may93 accept, in lieu of such two years of experience in public accou nting, evidence94 satisfactory to it of two years of continuous employment in the accounting field in95 industry, business, government, or college teaching; any combination of employment96 in such fields; or any combination of employment in such fields and the practice of97 public accountancy immediately preceding the date of application for the certificate98 or what the board determines to be the equivalent thereof; and99 (4) Who shall have passed an examination approved by the board in such related subjects100 as the board deems appropriate."101 SECTION 1-3.102 Said chapter is further amended in Code Section 43-3-10, relati ng to examinations for103 certified public accountants, by revising subsection (b) as follows:104 "(b) As Unless otherwise provided by rule or regulation of the board, as a prerequisite to105 sit for the examination, applicants shall meet the education re quirements provided in106 division (b)(3)(A)(ii) (b)(3)(A)(i), (b)(3)(B)(i), or (b)(3)(C)(i) of Code Section 43-3-9."107 SECTION 1-4.108 Said chapter is further amended by revising Code Section 43-3-12, relating to reciprocity for109 certified public accountants, as follows:110 "43-3-12.111 The board, in its discretion, may waive the examination provided for in paragraph (4) of112 subsection (b) of Code Section 43-3-9 and may issue a certifica te as a certified public113 accountant to any individual who possesses the qualifications specified in paragraphs (1)114 and (2) of subsection (b) of Code Section 43-3-9 and what the board determines to be the115 substantial equivalent of comparable to the qualifications under paragraph (3) of116 subsection (b) of Code Section 43-3-9 and who is a holder of a certificate as a certified117 H. B. 148 - 5 - 25 LC 55 0431/AP public accountant, then in full force and effect, issued under the laws of any other state;118 provided, however, that the certificate held by such individual was issued by any other state119 after an examination which, in the judgment of the board, is the equivalent of the standard120 established by the board for examinations administered pursuant to paragraph (4) of121 subsection (b) of Code Section 43-3-9; and provided, further, t hat such privileges are122 extended to citizens of this state by any other state that originally granted the certificate. 123 Notwithstanding the foregoing, the examination provided for in paragraph (4) of124 subsection (b) of Code Section 43-3-9 shall may be waived by the board in the case of an125 applicant who has been engaged in public practice for a period of ten years in any other126 state pursuant to the authority of such state."127 SECTION 1-5.128 Said chapter is further amended by revising Code Section 43-3-1 6, relating to licensure129 requirements for firms practicing public accountancy, as follows:130 "43-3-16.131 (a) The board shall grant or renew the license of a firm practicing public accountancy to132 firms that meet the following requirements:133 (1)(A) Partners, members, or shareholders owning at least a si mple majority of the134 financial interest and voting rights of the firm shall be certified public accountants of135 this state or any other state in good standing, except that suc h partners, members, or136 shareholders who are certified public accountants and whose office location designated137 by such partners, members, or shareholders who are certified pu blic accountants for138 purposes of substantial equivalency mobility practice privileges and reciprocity is in139 this state and who perform accounting services in this state shall be required to hold a140 license from this state.141 (B) An individual who has substantial equivalency mobility practice privileges under142 subsection (b) of Code Section 43-3-18 who performs services fo r which a firm143 H. B. 148 - 6 - 25 LC 55 0431/AP licensure is required under paragraph (4) of subsection (b) of Code Section 43-3-18144 shall not be required to obtain a certificate or license under this chapter;145 (2) The firm shall be in compliance with all requirements and provisions of law146 governing the organizational form of the firm in any other state that is the firm's office147 location designation for purposes of substantial equivalency mobility practice privileges148 and reciprocity;149 (3) The firm shall comply with all rules or regulations pertaining to firms licensed by the150 board;151 (4) The resident manager, as such term is defined in the board's rules or regulations, of152 each office of the firm within this state in the practice of public accountancy shall be a153 certified public accountant of this state in good standing;154 (5) Any firm that includes nonlicensee owners shall comply with the following rules:155 (A) The firm shall designate the holder of a license in this state, or in the case of a firm156 which is required to be licensed pursuant to subparagraph (b)(1 )(C) of this Code157 section, a licensee of any other state who meets the substantia l equivalency mobility158 practice privileges requirements set forth in subsection (b) of Code Section 43-3-18,159 who shall be responsible for the proper licensure of the firm a nd shall identify that160 individual to the board;161 (B) All nonlicensee owners shall provide services or perform functions in the firm or162 the firm's affiliated entities; and163 (C) The firm shall comply with such other requirements as the board may impose by164 rule or regulation;165 (6) Any holder of a license in this state and any individual who qualifies for substantial166 equivalency mobility practice privileges under subsection (b) of Code Section 43-3-18167 who is responsible for supervising attest or compilation services and signs or authorizes168 someone to sign the accountant's report on behalf of the firm shall meet the competency169 requirements set by the board for such services; and170 H. B. 148 - 7 - 25 LC 55 0431/AP (7) Any holder of a license in this state and any individual who qualifies for substantial171 equivalency mobility practice privileges under subsection (b) of Code Section 43-3-18172 who signs or authorizes someone to sign the accountant's report on behalf of the firm173 shall meet the competency requirements set by the board.174 (b)(1) The following firms shall be required to be licensed under this Code section:175 (A) Any firm with a physical office in this state practicing public accountancy;176 (B) Any firm with a physical office in this state that uses the title 'CPA' or 'CPA firm';177 and178 (C) Any firm that does not have a physical office in this state but performs any service179 described in subparagraph (A), (C), or (D) of paragraph (2) or paragraph (4) of Code180 Section 43-3-2 for a client that specifies a location in this state to which such service181 is directed, unless such firm meets the requirements of paragraph (2) of this subsection.182 (2) A firm that does not have a physical office in this state may perform services183 described in subparagraphs (B) and (E) of paragraph (2) or paragraph (4) of Code184 Section 43-3-2 for a client that specifies a location in this s tate to which any service185 described in subparagraph (A), (C), or (D) of paragraph (2) of Code Section 43-3-2 is186 such services are directed and may use the title 'CPA' or 'CPA firm' without bei ng187 licensed as provided in this Code section only if:188 (A) It meets the qualifications described in paragraph (1) of subsection (a) of this Code189 section;190 (B) It complies with the board's rules or regulations regarding peer review; and191 (C) It performs such services through an individual with substantial equivalency who192 is licensed in this state under Code Section 43-3-9 or who has mobility practice193 privileges under subsection (b) of Code Section 43-3-18.194 (3) A firm that does not have a physical office in this state and that is not subject to the195 requirements of subparagraph (C) of paragraph (1) or paragraph (2) of this subsection196 may perform other professional services, as such services are defined in the board's rules197 H. B. 148 - 8 - 25 LC 55 0431/AP or regulations, included in the practice of public accountancy while using the title 'CPA'198 or 'CPA firm' in this state without being licensed under this Code section only if:199 (A) It performs such services through an individual with subst antial equivalency200 practice privileges under subsection (b) of Code Section 43-3-18; and201 (B) It can lawfully perform such services in any other state where such individuals with202 substantial equivalency practice privileges have their office location designated by such203 individuals for purposes of substantial equivalency and reciprocity.204 (c) Each firm required to be licensed under paragraph (1) of subsection (b) of this Code205 section shall be licensed biennially under this chapter with th e board, provided that any206 firm for which such requirement becomes effective between bienn ial reporting periods207 shall become licensed with the board within 60 days. Such a firm shall be required to show208 that all attest and compilation services rendered in this state are under the supervision of209 an individual holding a license issued by the board or an indiv idual with substantial210 equivalency mobility practice privileges under subsection (b) of Code Section 43-3- 18. 211 The board, by rule or regulation, shall prescribe the procedure to be followed in effecting212 such licensure and the information which shall be required to b e provided regarding the213 firm and its practice.214 (d) A licensed firm shall file written notice to the board, wi thin 60 days after the215 occurrence of the opening of a new office or the closing or change of address of any of its216 offices in this state. Each such office shall be under the supervision of a resident manager217 who may be a partner, principal, shareholder, member, or a staf f employee holding a218 license in this state.219 (e) Neither the denial of a firm license under this Code secti on nor the denial of the220 renewal of a firm license under Code Section 43-3-17 shall be considered to be a contested221 case within the meaning of Chapter 13 of Title 50, the 'Georgia Administrative Procedure222 Act.' Notice and hearing within the meaning of Chapter 13 of T itle 50 shall not be223 H. B. 148 - 9 - 25 LC 55 0431/AP required, but the applicant shall be allowed to appear before t he board if he or she224 requests."225 SECTION 1-6.226 Said chapter is further amended by revising Code Section 43-3-1 8, relating to issuance of227 license to practice accountancy and substantial equivalency pra ctice privilege for228 nonresidents, as follows:229 "43-3-18.230 (a) A license to engage in the practice of public accountancy in this state shall be issued231 by the executive director, at the direction of the board, to ea ch individual who is232 certificated as a certified public accountant under Code Section 43-3-9 or 43-3-12 or who233 shall have furnished evidence, satisfactory to the board, of compliance with the continuing234 professional education requirements of Code Section 43-3-19, and to firms licensed under235 Code Section 43-3-16, provided that such firms are maintained a nd licensed as required236 under Code Sections 43-3-16 and 43-3-17. There shall be a bien nial license fee in an237 amount to be determined by the board.238 (b) Individuals may practice under substantial equivalency mobility practice privileges as239 follows:240 (1) An individual whose office location designation by such individual for purposes of241 substantial equivalency mobility practice privileges and reciprocity is in any other state242 shall be presumed to have qualifications substantially equivale nt to this state's243 requirements, shall have all the privileges of license holders of this state , and may244 practice public accountancy in this state without the requirement to obtain a license under245 this chapter or to otherwise notify the board or pay any license fee if the individual:246 (A) Holds holds a current license in good standing as a certified public accountant from247 any other state which requires, as a condition of licensure, th at an individual a n d248 H. B. 148 - 10 - 25 LC 55 0431/AP continues to be so licensed during the pendency of the individual's practice in this state,249 and:250 (i)(A) Has at least 150 semester hours of college education including a baccalaureate251 or higher degree conferred by a college or university; attained such education and252 experience as the board by rule or regulation may establish as necessary to practice253 under mobility practice privileges; and254 (ii)(B) A c h i e v e s Has achieved a passing grade on the Uniform Certified Public255 Accountant Examination; and256 (iii) Possesses at least one year of experience, including providing any type of service257 or advice involving the use of accounting, attest, compilation, management advisory,258 financial advisory, tax, or consulting skills, which may be obt ained through259 government, industry, academic, or public practice all of which was verified by a260 licensee; or261 (B) Holds a current license as a certified public accountant from any other state which262 does not meet the requirements of subparagraph (A) of this para graph but such263 individual's certified public accountant qualifications are sub stantially equivalent to264 those requirements. Any individual w ho passed the Uniform Cert ified Public265 Accountant Examination and holds a current license issued by any other state prior to266 January 1, 2012, may be exempt from the education requirement in division (1)(A)(i)267 of this subsection for purposes of this subparagraph;268 (2) Notwithstanding any other provision of law, an individual who offers or renders269 professional services, as such services are defined in the boar d's rules or regulations,270 whether in person or by mail, telephone, or electronic means, u nder this Code section271 shall be granted substantial equivalency mobility practice privileges in this state and no272 notice, license, fee, or other submission shall be provided by any such individual. Such273 an individual shall be subject to the requirements of paragraph (3) of this subsection;274 H. B. 148 - 11 - 25 LC 55 0431/AP (3) An individual licensee of any other state exercising the privilege afforded under this275 subsection, and any firm that employs such individual, shall simultaneously consent, as276 a condition of exercising this privilege:277 (A) To the personal and subject matter jurisdiction and discip linary authority of the278 board;279 (B) To comply with the provisions of this chapter and the board's rules or regulations;280 (C) That in the event the individual's license issued by any other state designated by281 such individual for purposes of substantial equivalency mobility practice privileges and282 reciprocity is not current, the individual shall cease practici ng public accountancy in283 this state individually and on behalf of a firm; and284 (D) To the appointment of the board that issued the individual 's license as the285 individual's agent upon whom process may be served in any actio n or proceeding by286 this state's board against the individual;287 (4) An individual who qualifies for the substantial equivalenc y mobility practice288 privileges under this Code section who, for a client who specifies a location in this state289 to which any service under subparagraph (A), (C), or (D) of par agraph (2) of Code290 Section 43-3-2 is directed, may only perform such services through a firm that is licensed291 with the board under meets the requirements of Code Section 43-3-16; and292 (5) An individual qualifying for the substantial equivalency mobility practice privileges293 under paragraph (1) of this subsection may provide expert witness services in this state294 and shall be deemed to be in compliance with Code Section 24-7- 702 for purposes of295 such services.296 (c) Subsection (b) of this Code section shall not be applied o r construed to allow an297 individual to engage in the practice of public accountancy in this state based on substantial298 equivalency mobility practice privileges unless such individual holds a current license as299 a certified public accountant in any other state which grants similar reciprocity to license300 holders in this state."301 H. B. 148 - 12 - 25 LC 55 0431/AP SECTION 1-7.302 Said chapter is further amended in Code Section 43-3-21, relati ng to revocation or refusal303 to grant or renew license and immunity, by revising the introdu ctory language of304 subsection (a) as follows:305 "(a) The board may refuse to grant a license to an applicant, revoke any license issued by306 the board, discipline a licensee, or forbid an individual from exercising the substantial307 equivalency mobility practice privileges for any one or any combination of the following308 causes:"309 SECTION 1-8.310 Said chapter is further amended in Code Section 43-3-23, relating to adjudicative hearings311 before board, by revising subsection (c) as follows:312 "(c) Before the board shall revoke or suspend a license, a cert ificate, or substantial313 equivalency mobility practice privileges, it shall provide for a hearing for the ho lder of314 such license, certificate, or practice privileges in accordance with Chapter 13 of Title 50,315 the 'Georgia Administrative Procedure Act.' Any person who has exhausted all316 administrative remedies available within this chapter and who i s aggrieved by a final317 decision in a contested case shall be entitled to judicial revi ew in accordance with318 Chapter 13 of Title 50."319 SECTION 1-9.320 Said chapter is further amended in Code Section 43-3-27, relati ng to notification of321 conviction, time limit, and suspension, by revising subsection (a) as follows:322 "(a) Any individual issued a license or certification under this chapter or providing services323 under substantial equivalency mobility practice privileges and convicted under the laws of324 this state, the United States, any other state, or any other country of a felony as defined in325 paragraph (3) of subsection (a) of Code Section 43-1-19 shall b e required to notify the326 H. B. 148 - 13 - 25 LC 55 0431/AP board of such conviction within 30 days of such conviction. The failure of such individual327 to notify the board of a conviction shall be considered grounds for revocation of his or her328 license or other authorization issued pursuant to this chapter."329 SECTION 1-10.330 Said chapter is further amended by revising Code Section 43-3-28, relating to reinstatement331 or modification of a revoked or suspended license, as follows:332 "43-3-28.333 Upon written application after a hearing pursuant to Chapter 13 of Title 50, the 'Georgia334 Administrative Procedure Act,' the board may recertificate a ce rtified public accountant335 whose certification has been revoked or may reissue or modify the suspension of a license336 or substantial equivalency mobility practice privileges which have been revoked or337 suspended."338 SECTION 1-11.339 Said chapter is further amended in Code Section 43-3-30, relati ng to injunctions and340 enforcement, by revising subsection (c) as follows:341 "(c) The electronic, printed, engraved, or written display or uttering by a person of a card,342 sign, advertisement, instrument, or other device bearing an ind ividual's name in343 conjunction with the words 'certified public accountant' or any abbreviation thereof shall344 be prima-facie evidence in any action brought under this Code s ection or Code345 Section 43-3-34 that the individual whose name is so displayed caused or procured the346 electronic, printed, engraved, or written display or uttering o f such card, sign,347 advertisement, instrument, or other device and that such individual is holding himself or348 herself out to be a certified public accountant holding a license or otherwise claims to be349 qualified to use such title by virtue of the substantial equiva lency mobility practice350 privileges under subsection (b) of Code Section 43-3-18 or of the firm practice provisions351 H. B. 148 - 14 - 25 LC 55 0431/AP of subsection (b) of Code Section 43-3-16. In any such action, evidence of the commission352 of a single act prohibited by this chapter shall be sufficient to justify an injunction or a353 conviction without evidence of a general course of conduct."354 SECTION 1-12.355 Said chapter is further amended in Code Section 43-3-31, relating to prohibited use of title356 or designation and false or deceptive practices, by revising subsection (h) as follows:357 "(h) It shall not be a violation of this Code section or chapter for an individual who does358 not hold a license under this chapter but who qualifies for the substantial equivalency359 mobility practice privileges under subsection (b) of Code Section 43-3-18 to use the title360 or designation 'certified public accountant' or 'CPA' or other titles to indicate that the361 individual is a certified public accountant, and such individual may engage in the practice362 of public accountancy in this state with the same privileges as a license holder so long as363 the individual complies with paragraph (4) of subsection (b) of Code Section 43-3-18."364 PART II365 SECTION 2-1.366 Article 1 of Chapter 81 of Title 36 of Official Code of Georgia Annotated, relating to local367 government budget and audits, is amended in subsection (b) of C ode Section 36-81-8.1,368 relating to definitions, grant certification forms, filing with state auditor, forfeiture of funds369 for noncompliance, and no exemption from liability, by replacing "subparagraph (b)(3)(A)370 of Code Section 43-3-9" with "paragraph (3) of subsection (b) of Code Section 43-3-9".371 H. B. 148 - 15 - 25 LC 55 0431/AP PART III372 SECTION 3-1.373 This Act shall become effective on January 1, 2026.374 SECTION 3-2.375 All laws and parts of laws in conflict with this Act are repealed.376 H. B. 148 - 16 -