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HB59 ENROLLED
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HB59
ARLMGQS-2
By Representative Underwood
RFD: Boards, Agencies and Commissions
First Read: 13-Jan-26
PFD: 13-Nov-25
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PFD: 13-Nov-25
Enrolled, An Act,
Relating to the Alabama State Board of Public
Accountancy; to amend Sections 34-1-2, 34-1-3, 34-1-4, 34-1-6,
34-1-7, 34-1-11, 34-1-14, and 34-1-16, Code of Alabama 1975;
to authorize the board to provide certain required
notifications by electronic mail; to authorize the board to
provide educational prerequisites to certain actions by rule;
to remove certain subjects required to be covered by the CPA
examination; to further provide for nonlicensed owners of CPA
firms; to further provide for the eligibility of individuals
to be permitted to practice public accountancy; to provide
that a firm cannot advertise that the firm is a CPA firm
unless it is registered as a CPA firm; and to make
nonsubstantive, technical revisions to update the existing
code language to current style.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. This act shall be known and may be cited as
the Pathways to CPA Act.
Section 2. Sections 34-1-2, 34-1-3, 34-1-4, 34-1-6,
34-1-7, 34-1-11, 34-1-14, and 34-1-16, Code of Alabama 1975,
are amended to read as follows:
"§34-1-2
For purposes of this chapter, the following words and
phrases shall have the following meanings respectively
ascribed in this section :
(1) AICPA. The American Institute of Certified Public
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(1) AICPA. The American Institute of Certified Public
Accountants.
(2) ATTEST. Providing the following services:
a. Any audit or other engagement to be performed in
accordance with the Statements on Auditing Standards (SAS).
b. Any review of a financial statement to be performed
in accordance with the Statements on Standards for Accounting
and Review Services (SSARS).
c. Any engagement to be performed in accordance with
the Statements on Standards for Attestation Engagements
(SSAE).
d. Any engagement to be performed in accordance with
the auditing standards of the Public Company Accounting
Oversight Board (PCAOB).
e. The statements on standards specified in this
definition shall be adopted by reference by the board pursuant
to rulemaking and shall be those developed for general
application by recognized national accountancy organizations
such as the AICPA and PCAOB.
(3) BOARD. The Alabama State Board of Public
Accountancy created by Section 34-1-3, except the special
meaning applicable only to Section 34-1-4.
(4) CERTIFIED PUBLIC ACCOUNTANT or CPA. An individual
who holds a certificate as a certified public accountant
issued according to Section 34-1-4.
(5) COMPILATION. Providing a service of any compilation
engagement to be performed in accordance with Statements on
Standards for Accounting and Review Services (SSARS).
(5)(6) FIRM. A sole proprietorship, partnership,
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(5)(6) FIRM. A sole proprietorship, partnership,
professional corporation, professional association, limited
liability company, limited liability partnership, or any other
form of business entity now or hereafter recognized by Alabama
law.
(6)(7) LICENSE. A certificate issued pursuant to
Section 34-1-4, a permit issued pursuant to Section 34-1-11,
registration pursuant to Section 34-1-8; or, in each case, a
certificate or permit issued pursuant to corresponding
provisions of prior law, or the practice privilege provided
pursuant to Section 34-1-7.
(7)(8) LICENSEE. The holder of a license.
(8)(9) OWNER. Any person who holds an ownership
interest in a firm.
(9)(10) PEER REVIEW. The study, appraisal, or review of
one or more aspects of the professional work of a licensee or
firm that performs attest or compilation services, by a person
or persons who hold licenses and who are not affiliated with
the licensee or firm being reviewed.
(10)(11) PREPARATION OF FINANCIAL STATEMENT. Providing
a service of any preparation of financial statements
engagement to be performed in accordance with Statements on
Standards for Accounting and Review Services (SSARS).
(11)(12) REPORT. a. When used in reference to any
attest or compilation service, an opinion, report, or other
form of language that states or implies assurance as to the
reliability of the attested information or compiled financial
statements and that also includes or is accompanied by any
statement or implication that the person or firm issuing it
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statement or implication that the person or firm issuing it
has special knowledge or competence in accounting or auditing.
Such a statement or implication of special knowledge or
competence may arise from use by the insurer or the report of
names or titles indicating that the person or firm is an
accountant or auditor or from the language of the report
itself.
b. The term report includes any form of language that
disclaims an opinion when such form of language is
conventionally understood to imply any positive assurance as
to the reliability of the attested information or compiled
financial statements referred to or special competence on the
part of the person or firm issuing such language. The term
report includes any other form of language that is
conventionally understood to imply such assurance or such
special knowledge or competence.
(12)(13) STATE. Any state, territory, or insular
possession of the United States or the District of Columbia."
"§34-1-3
(a) There is created a board of public accountancy in
and for the State of Alabama, to be known as the Alabama State
Board of Public Accountancy. The board shall consist of seven
members appointed by the Governor and confirmed by the Senate.
Members of the board shall be citizens of the United States
and residents of the state. The membership of the board shall
be inclusive and reflect the racial, gender, geographic,
urban/rural , rural, and economic diversity of the state.
Commencing October 1, 2019, six Six members of the Alabama
State Board of Public Accountancy board shall be certified
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State Board of Public Accountancy board shall be certified
public accountants in good standing with the board and one
member of the board shall be a public member who is not under
the jurisdiction of the board , but shall at the time of his or
her appointment shall be an active and reputable member of the
Alabama business community who possesses a knowledge and
understanding of financial transactions and financial
statements. The persons These individuals and their successors
shall constitute the Board of Public Accountancy board and
shall have and exercise all the powers and authority vested by
law in the board.
(b) All appointments shall be effective on October 1
for four-year terms, unless an appointment is made for an
unexpired term.
(c) The Alabama Society of Certified Public Accountants
shall, at least , not less than 30 days prior to the beginning
of any term or within not more than 30 days after any position
on the board becomes vacant, shall submit to the Governor the
names of five persons individuals qualified for membership on
the board for the certified public accountant position and
public member position to be filled, and the Governor shall
appoint one of the five nominees. Upon the failure of the
Alabama Society of Certified Public Accountants to submit
timely nominations for a position on the Board of Public
Accountancy board, the Board of Public Accountancy board may
submit nominations for the position to the Governor, who shall
appoint one of the five nominees.
(d) No person individual who has served two successive
complete terms on the board shall be eligible for
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complete terms on the board shall be eligible for
reappointment may be reappointed until after the lapse of one
year. An appointment to fill an unexpired term shall not be
considered a complete term. Vacancies occurring during a term
shall be filled by appointment for the unexpired term. Upon
the expiration of his or her term of office, a member shall
continue to serve until his or her successor is appointed and
confirmed by the Senate. Within 15 days after their of
confirmation by the Senate, the members of the board shall
take an oath before any person individual lawfully authorized
to administer oaths in this state to faithfully and
impartially perform their duties as members of the board, and
the same which shall be filed with the Secretary of State. The
Governor shall remove from the board any accountant-member
whose permit to practice has become void , or has been revoked ,
or suspended, or may, after a hearing, may remove any member
of the board for neglect of duty or just cause.
(e) The board annually shall elect a chair, a
vice-chair, and a secretary from its members.
(f) The board may adopt and amend rules pursuant to the
Administrative Procedure Act for the orderly conduct of its
affairs and for the administration of this chapter.
(g) A majority of the board shall constitute a quorum
for the transaction of business.
(h) The board shall have a seal whichthat shall be
judicially noticed.
(i) The board shall keep records of its proceedings and
of any proceeding in court, civil or criminal, arising out of
or founded upon this chapter. Copies of the records certified
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or founded upon this chapter. Copies of the records certified
as correct under the seal of the board shall be admissible in
evidence to prove the content of the records.
(j) The board shall maintain an annual register which
shall contain the names, arranged alphabetically by
classification, of all licensees under this chapter; the names
of the members of the board; and all other information deemed
proper by the board. The board may charge a fee in an amount
set by itthe board for furnishing the annual register to
persons who request itthe annual register .
(k) The board shall employ an executive director who is
a certified public accountant in good standing with the board
and such other personnel as may be needed, including, but not
limited to, certified public accountants in good standing with
the board, and shall arrange for such assistance, services,
supplies, and equipment as it requires for the the board
requires to performance of perform its duties. The number of
employees, their compensation, and all other expenses of the
board shall be paid at such rates and in such amounts as the
board shall approve approves . The executive director and other
employees of the board shall not be subject to or governed by
the state Merit System law but shall be entitled to all
benefits accruing to Merit System employees , including, but
not limited to, the right to accumulate leave, participate in
the Employees' Retirement System, and participate in the State
Employees' Health Insurance Plan.
(l) The board may adopt and amend rules of professional
conduct appropriate to establish and maintain a high standard
of integrity in the profession of public accountancy. At
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of integrity in the profession of public accountancy. At
leastNot less than 60 days prior to the adoption of any rule
or amendment, the board shall distribute by United States mail
or electronic mail copies of the proposed rule or amendment to
each holder of a permit issued under Section 34-1-11, with a
notice advising him or her of the proposed effective date of
the rule or amendment and requesting that he or she submit
comments thereon at least not less than 15 days prior to the
effective date ;. theThe comments shall be advisory only.
Failure to receive by mail the rule, amendment, or notice by
all permit holders shall not affect the validity of any rule
or amendment.
(m) Each member of the board shall be paid the same per
diem and travel allowance paid to state employees for each day
the member is actively engaged in the official business of the
board out of the funds of the board.
(n)(1) Any records, information, or writings obtained
or kept by the Board of Public Accountancy board in connection
with a peer review program whichthat the board is authorized
to establish by rule , or obtained or kept by the board in
connection with a disciplinary investigation shall be held in
confidence. If, pursuant to a disciplinary investigation,
probable cause for a hearing is found by the board, records,
information, or writings upon which the finding is based shall
be available to the licensee under investigation. Records,
information, and writings held in confidence shallmay not be
disclosed to any person except to the extent necessary to
carry out the purposes of the peer review program, the
investigation, or this chapter; pursuant to a court order for
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investigation, or this chapter; pursuant to a court order for
the production of evidence or the discovery thereof; or
pursuant to litigation involving the B oard of Public
Accountancy board wherein the records, information, or writings
are relevant to the issue in litigation.
(2) Notwithstanding the foregoing subdivision (1) , with
respect to peer review programs deemed acceptable to the board
which are performed by other organizations, the board shall
require that the peer review processes be operated and
documents maintained in a manner designed to preserve
confidentiality, and that neither the board nor any third
party, other than an oversight body, shallmay have access to
documents furnished or generated in the course of the review."
"§34-1-4
(a) If each of the following qualifications is met,
theThe certificate of certified public accountant shall be
granted by the board to any person individual who satisfies
each of the following requirements :
(1) Who is Is a citizen of the United States or, if not
a citizen of the United States, a person an individual who is
legally present in the United States with appropriate
documentation from the federal government.
(2) Who has Has attained the age of 19 years of age .
(3) Who is Is of good moral character.
(4) Who meets Satisfies the following educational
requirements adopted by rule of the board. :
a. A person shall have earned a college degree from a
four-year college or university accredited by a regional
accreditation board such as the Southern Association of
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accreditation board such as the Southern Association of
Colleges and Universities, with a concentration in accounting
or what the board determines to be substantially the
equivalent of a concentration in accounting. Persons who, on
May 16, 1989, have previously taken the uniform written CPA
examination shall be considered to meet these qualifications.
b. After January 1, 1995, any person who has not
previously sat for the uniform CPA examination shall have
completed a total of 150 semester hours or 225 quarter hours
of postsecondary education, including a baccalaureate degree
at a college or university accredited by a regional
accreditation board such as the Southern Association of
Colleges and Universities. The total education program shall
include an accounting concentration as defined by the board
and other course work as the board may require by regulation.
(5)a. Who has Has successfully passed athe uniform CPA
examination, administered by the board or its designee , in
accounting and auditing and in any other related subjects as
the board deems necessary, including, but not limited to,
business law and taxation, to maintain the highest standard of
proficiency in the profession of public accounting .
b. After January 1, 2016, in order to be eligible for
an initial sitting An individual may not initially sit for the
uniform CPA examination , a person shall have completed a total
of 120 semester hours or 180 quarter hours of education,
including a baccalaureate degree at a college or university
accredited by a regional accreditation board such as the
Southern Association of Colleges and Universities unless he or
she has satisfied the educational requirements adopted by rule
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she has satisfied the educational requirements adopted by rule
of the board .
(b)(1) Examinations provided for in this chapter shall
be given by the board as often as necessary , but not less
frequently than twice each year. The board shall , after each
examination, shall notify applicants of the results.
(2) The board may issue certificates under the
signature and the official seal of the board, pursuant to this
chapter.
(c) The board shall charge each person certified under
subsection (e) and each candidate an application fee for the
uniform CPA examination in an amount determined by the board .
Examination and reexamination These fees shall be charged by
the board, or its designee, in amounts determined by the board
for each subject in which a candidate is examined. The
applicable fees shall be paid to the board, or its designee,
by the candidate at the time he or she applies for examination
or reexamination.
(d) Persons who, on May 16, 1989, held certified public
accountant certificates issued under the laws of this state
shall not be required to obtain additional certificates under
this chapter, but shall otherwise be subject to this chapter.
The certificates issued shall, for all purposes, be considered
certificates issued under this chapter and subject to this
chapter.
(e)(d)(1) The board may waive the examination under
subdivision (a)(5) , and may issue aan Alabama reciprocal
certificate as a certified public accountant to any person
paying individual who satisfies all of the following:
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paying individual who satisfies all of the following:
a. Pays the application fee provided in subsection
(c)subdivision (2).
b. who possesses Possesses the qualifications specified
in subdivisions (a)(1) through (a)(3) , and what the board
determines to be substantially the equivalent of the
applicable qualifications requirements under subdivision
(a)(4) ,.
c. and who is the holder of Holds a certificate as a
certified public accountant, then in full force and effect,
issued under the laws of any state.
(2) The board shall charge each individual desiring to
be certified pursuant to subdivision (1) an application fee in
an amount determined by the board.
(f)(e) The board may make appropriate regulations adopt
rules to govern the issuance of a certificate as a certified
public accountant to the holder of a certificate, license, or
degree which is then in full force and effect in any foreign
country constituting a recognized qualification for the
practice of public accounting in the country, comparable to
that of a certified public accountant of this state."
"§34-1-6
(a) A firm engaged in this state in the practice of
public accounting may register with the board as a firm of
certified public accountants provided itthe firm meets all of
the following requirements:
(1) At least 51 percent of the ownership of the firm,
in terms of financial interests and voting rights of all
partners, officers, shareholders, members, or managers,
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partners, officers, shareholders, members, or managers,
belongs to holders of a certificate who are licensed in some
state, and such partners, officers, shareholders, members, or
managers, whose principal place of business is in this state,
and who perform professional services in this state hold a
valid certificate issued under Section 34-1-4. Although firms
may include nonlicensee owners, the firm and its ownership
mustshall comply with rules promulgated adopted by the board.
(2) Each certified public accountant owner regularly
engaged within this state in the practice of public accounting
as a member of the firm shall be a certified public accountant
of this state in good standing except as provided in
subdivision (4) of this subsection or when practicing pursuant
to Section 34-1-7.
(3) Each resident manager in charge of an office of a
firm in this state whose main office is outside this state
shall be a certified public accountant of this state in good
standing except as provided in subdivision (4) of this
subsection .
(4) Certified Each certified public
accountants accountant (CPAs) from other jurisdictions another
jurisdiction transferring into Alabama shall be required to
obtain an Alabama reciprocal certificate within not more than
24 months from the date of transfer.
(5) Any CPA firm as defined in this chapter may
include The firm does all of the following with regard to any
nonlicensee owners provided that of the firm :
a. The firm designates Designates a licensee of this
state who is responsible for the proper registration of the
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state who is responsible for the proper registration of the
firm and identifies that individual to the board.
b. AllEnsures all nonlicensee owners are active
individual participants in the CPA firm or affiliated
entities .
c. AEnsures a nonlicensee is prohibited from being not
an owner if he or she has previously held a license.
d. AllEnsures that all nonlicensee owners whose
principal place of business is in this state shall register
annually with the board, pay an annual registration fee in an
amount determined by the board, and report the
satisfaction completion of any annual continuing education
requirements that the board may impose by rule on nonlicensee
owners.
e. The firm complies Complies with suchall other
requirements as the board may impose by rule.
(6) Firms whichthat fall out of compliance with this
section due to changes in firm ownership or personnel, after
receiving or renewing a permit, shall take corrective action
to bring the firm back into compliance as quickly as possible.
The board may grant a reasonable period of time to take such
corrective action. Failure to bring the firm back into
compliance within a reasonable period of time as defined by
the board willshall result in the suspension or revocation of
the firm permit.
(b) Application for registration shall be made upon the
affidavit of an owner of the firm who is a certified public
accountant of this state in good standing. The board shall in
each case determine whether the firm is eligible for
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each case determine whether the firm is eligible for
registration. A firm whichthat is registered and whichthat
holds a permit issued under Section 34-1-11 may use the words
"certified public accountants" or the abbreviation "CPAs" in
connection with the name of the firm. Notification shall be
given the board, within A registered firm shall notify the
board not more than one month , after the admission to or
withdrawal of an owner from any firm registered ."
"§34-1-7
(a) Subject to subsection (b), a person an individual
who is licensed holds a valid license as a certified public
accountant in another state , has satisfied the educational
requirements adopted by rule of the board, and whose principal
place of business is not in this state shall have all the
practice privileges of a certified public accountant in this
state without the need to obtain a certificate or permit under
this chapter or to notify or register with the board . and A
certfied public accountant may offer or render professional
services in this state, whether in person or by United States
mail, telephone, or electronic means, without any notice, fee,
or other submission under this chapter.
(b) A person An individual exercising the practice
privilege granted in subsection (a) and any firm that employs
the person individual , as a condition of the grant of the
privilege, are deemed to consent to all of the following:
(1) The personal and subject matter jurisdiction and
disciplinary authority of the board and the courts of Alabama.
(2) Compliance with this chapter and any rules
promulgated adopted by the board.
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promulgated adopted by the board.
(3) That the person individual shall cease offering or
rendering professional services under the practice
privilege subsection (a) personally and on behalf of a firm if
the license of the person individual from the state by which
the person individual was licensed as a certified public
accountant when any professional services were offered or
rendered, or began to be offered or rendered, pursuant to the
practice privilege provided in this section subsection (a) , is
no longer valid.
(4) To the appointment of any out-of-state board by
which the person individual was licensed as a certified public
accountant when any professional services were offered or
rendered, or began to be offered or rendered, pursuant to the
practice privilege provided in this section subsection (a) , to
be his or her agent for the purpose of service of process in
any action or proceeding by the board in this state against
the person individual ."
"§34-1-11
(a)(1) Permits A permit to engage in the practice of
public accounting in this state shall be issued by the board
to a holder of a certificate of certified public accountant
issued under Section 34-1-4 and to a person an individual
registered under Section 34-1-8 who furnishes satisfactory
evidence satisfactory to the board of compliance with the
requirements of subsection (c) and who: (1)(i) is a citizen of
the United States or, if not a citizen of the United States, a
person an individual who is legally present in the United
States with appropriate documentation from the federal
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States with appropriate documentation from the federal
government , or has declared his or her intent to become a
citizen; and (2) ; (ii) has attained the age of 19 years of
age; and (3) (iii) is of good moral character; and (4)(iv)
meets the experience requirements set forth in subsection
(e)by rule of the board . Permits to engage in the practice of
public accounting in this state also shall be issued by the
board to persons individuals or firms under Sections 34-1-5,
34-1-6, and 34-1-9, if all offices of those certificate
holders or registrants are maintained and registered as
required under Section 34-1-10.
(2) There shall be an annual permit fee for each
certificate holder under Section 34-1-4, each registrant under
Section 34-1-8, and each firm in an amount to be determined by
the board. All permits shall expire on September 30 of each
year and may be renewed annually for a period of one year. The
application for renewal and annual renewal fee shall be filed
with thisthe board no later than December 31 following the
expiration date. The board may also charge a late renewal
penalty on or after January 1 following the expiration date in
an amount set by the board which is graduated depending on the
length of time the renewal is delinquent.
(2)(3) The board, by rule, shall require as a condition
for renewal of a permit under this section, by that any permit
holder who performs compilation services for the public other
than through a CPA or PA firm , that the individual undergo,
nonot more frequently than once every three years, a peer
review conducted in such manner as the board shall by rule
specify .
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specify .
(b)(1) Notwithstanding subsection (a), a certified
public accountant or public accountant registered under this
chapter who is not engaged in the practice of public
accounting may request the board, in writing, to place his or
her name on the board's inactive roll or retired roll, thereby
granting him or her inactive status or retired status, and
protecting his or her right to obtain a permit to practice
pursuant to subsection (a) at a later time as he or she wishes
to become actively engaged in the practice of public
accounting .
(2) If, upon receipt of the notification, the board
determines that the certified public accountant or public
accountant is not engaged in public accounting, the certified
public accountant or public accountant shall be permitted
tomay retain his or her initial registration or certificate by
paying an annual registration fee in an amount asdetermined by
the board shall, from time to time, determine . Certified
public accountants or public accountants granted inactive
status or retired status by the board shall place the word
"inactive" or "retired," respectively, adjacent to their CPA
title or PA title on any business card, letterhead, or any
other document or device, with the exception of their CPA
certificate or PA registration, on which their CPA or PA title
appears. If a certified public accountant or public accountant
who has elected inactive status or retired status wishes to
reenter the active practice of public accountancy, he or she
shall make application to the board for an annual permit to
practice. The board, in its rules and regulations by rule ,
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practice. The board, in its rules and regulations by rule ,
shall specify the number of hours of continuing education the
applicant shall obtain satisfy before he or she regains active
status to ensure his or her competency to practice public
accounting.
(c) Every application for renewal of an annual permit
to practice by any person individual who holds a certificate as
a certified public accountant or who is a registrant under
Section 34-1-8 shall be accompanied or supported by any
evidence the board prescribes of satisfaction of its
continuing education requirements during the preceding year.
Failure by an applicant for renewal of an annual permit to
furnish the evidence shall constitute grounds for revocation,
suspension, or refusal to renew the permit in a proceeding
under Section 34-1-12, unless the board determines the failure
to have been due to reasonable cause. The board may renew an
annual permit to practice despite failure to furnish evidence
of satisfaction of requirements of continuing education upon
the condition that the applicant follows a particular program
or schedule of continuing education. In issuing rules ,
regulations, and individual orders inwith respect ofto
requirements of continuing education, the board, among other
things, may :
(1) useUse and rely upon guidelines and pronouncements
of recognized educational and professional associations;
(2) may prescribe for Prescribe the content, duration,
and organization of courses;
(3) shall take Take into account the accessibility by
applicants to the continuing education required and any
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applicants to the continuing education required and any
impediments to interstate practice of public accountancy which
result from the difference in the requirements in other
states; and
(4) and may provide Provide for relaxation or suspension
of those requirements in regard to applicants who certify that
they do not intend to engage in the practice of public
accountancy , and for instances of individual hardships.
(d) In the event If a certified public accountant or
public accountant fails to apply for an annual permit to
practice or to be placed on the board's inactive roll within:
(1)(i) Sixsix months from the expiration date of the permit to
practice last obtained or renewed pursuant to subsection (a);
(2)(ii) six months from the expiration date of the last annual
renewal of his or her certificate pursuant to subsection (b);
or (3)(iii) six months from the date upon which the
certificate holder or registrant was granted his or her
certificate or registration, if no permit was ever issued to
him or her under subsection (a) or his or her name was never
placed on the board's inactive roll under subsection (b), the
certified public accountant or public accountant may not apply
for a permit or inactive status, and the failure to apply
shall constitute grounds for revocation or suspension of the
holder's certificate , unless the board determines the failure
to have been due to reasonable cause. In that case, the board
may impose a reinstatement fee not to exceed one hundred
dollars ($100) , plus the total annual registration fees and
late renewal penalties whichthat the certified public
accountant or public accountant would have paid under this
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accountant or public accountant would have paid under this
chapter during the period when neither a permit nor inactive
status was maintained. The board may also charge an inactive
status penalty in an amount set by the board which is
graduated for the time of the inactivity.
(e) The experience requirement shall be one year of
experience in the practice of public accounting as defined by
the board's rules and regulations. "
"§34-1-14
(a) Commencement of proceeding. The board may initiate
proceedings under this chapter either on its own motion or on
the complaint of any person.
(b) Notice; service and contents. A written notice
stating the nature of the charge or charges against the
accused and the time and place of the hearing before the board
on suchthe charges shall be served on the accused not less
than 30 days prior to the date of saidthe hearing either
personally or by mailing a copy thereof by registered or
certified mail to the address of the accused last known to the
board or by electronic mail to the last electronic mail
address of the accused known to the board with electronic mail
delivery receipt requested .
(c) Failure to appear. If, after having been served
with thea notice of hearing as provided for herein , the
accused fails to appear at saidthe hearing and defend, the
board may proceed to hear evidence against him or her and may
enter suchan order as shallmay be justified by the evidence ,
which. The order shall be final unless he or she the accused
petitions for a review thereof as provided herein of the order ;
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petitions for a review thereof as provided herein of the order ;
provided, that within not more than 30 days from the date of
any order, upon a showing of good cause for failing to appear
and defend, the board may reopen the proceedings and may
permit the accused to submit evidence in his or her behalf.
(d) Counsel; witnesses; cross-examination. At any
hearing , the accused may appear in person or by counsel,
produce evidence and witnesses on his or her own behalf,
cross-examine witnesses , and examine such evidence as may be
produced against him or her. A professional association or
corporation may be represented before the board by counsel or
by a shareholder who is a certified public accountant or
public accountant of this state in good standing. The accused
shall be entitled, on application to the board, to the
issuance of subpoenas to compel the attendance of witnesses on
his or her behalf.
(e) Subpoenas; testimony; deposition.
(1) In all matters pending before it, the board shall
have the power to may issue subpoenas and compel the attendance
of witnesses and the production of all necessary papers, books
and records, documentary evidence and materials, or other
evidence. Any person individual failing or refusing to appear
or testify regarding any matter about which he or she may be
lawfully questioned or to produce any papers, books, records,
documentary evidence, or materials or other evidence in the
matter to be heard, after having been required by order of the
board or by subpoena of the board to do so, may, upon
application by the board to any circuit judge of the State of
Alabama, may be ordered to comply therewith, and upon failure
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Alabama, may be ordered to comply therewith, and upon failure
to comply with the order . Upon the failure to comply with the
order of the circuit judge, the court may compel obedience by
attachment as for contempt, as in the case of disobedience of
a similar order or subpoena issued by the court. The
chairman chair and the secretary of the board shall have the
authority to may issue subpoenas, and any board member shall
have authority to may administer oaths to witnesses or to take
theirhis or her affirmation. A subpoena or other process or
paper may be served upon any person individual named therein,
anywhere within the State of Alabama, with the same fees and
mileage, by any officer authorized to serve subpoenas or such
other process or paper in civil actions, in the same manner as
is prescribed by law for subpoenas issued out of the circuit
courts of this state, the fees and mileage and other costs
including witness fees and mileage to be paid as the board
directs.
(2) Deposition may be taken within or without outside of
the State of Alabama in the manner provided for by the laws of
Alabama and the Alabama Rules of Civil Procedure for the
taking of depositions in matters pending in the circuit courts
of this state. The depositions shall be returnable to the
clerk of the circuit court of the county wherein where the
hearing before the board is pending, and the clerk shall
deliver the depositions to the board upon request , and the .
The depositions may be opened or used by the parties to the
proceedings the same as is provided for in matters pending
before the circuit courts.
(3) The circuit court shall , upon request of any
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(3) The circuit court shall , upon request of any
interested party in any proceedings before the board, shall
issue commissions for the taking of depositions in the same
manner as is provided by law for the issuance of commissions
for the taking of depositions in matters pending before the
circuit courts of this state.
(f) Evidence. The board shall not be bound to observe
formal rules of pleading or evidence.
(g) Record. A stenographic record of hearings shall be
kept and a transcript thereof filed with the board.
(h) Attorney for the board. At all hearings, the
Attorney General of this state , or one of his or her
assistants designated by him or her designee , or such other
legal counsel as may be employed by the board , shall appear
and represent the board and participate in the presentation of
any matter before the board.
(i) Decision. Any decision of the board shall be by
majority vote thereof of the board .
(j) Review by court.
(1) Anyone adversely affected by any order of the board
may obtain a review thereof of the order by filing a written
petition for review with the Circuit Court of Montgomery
County within 30 days after the entry of the order. The
petition shall contain or have attached thereto to the petition
a true copy of the order complained of and shall , state the
grounds upon which the review is asked , and shall pray request
that the order of the board be modified or set aside in whole
or in part. A copy of suchthe petition shall be forthwith
served upon any member of the board, and thereupon the board
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served upon any member of the board, and thereupon the board
shall certify and file in the court a copy of its order and a
complete transcript of the record upon which the order
complained of was entered. The case shall then be tried and
heard on the record made before the board , without the
introduction of new or additional evidence, but the parties
shall be permitted to file briefs. The court may affirm,
modify, or set aside the board's order in whole or in part, or
may remand the case to the board for further evidence, and
may, in its discretion, stay the effect of the board's order
pending its determination of the case. The court's decision
shall have the force and effect of a judgment.
(2) From the judgment of the circuit court, either the
board or the affected party who invoked the review may appeal
directly to the Supreme Court of Alabama by taking suchthe
appeal within not more than 42 days after the date of the
making of and entering of its judgment by the circuit
courtcourt's judgment . The affected appealing party so
appealing shall give security for the costs of suchthe appeal
to be approved by the register or clerk of the circuit court.
No such security shall be required of the board."
"§34-1-16
No person individual shall assume or use the title or
designation "certified public accountant," the abbreviation
"CPA" or any other title, designation, words, letters,
abbreviation, sign, card, or device tending to indicate that
the person individual is a certified public accountant, unless
the person individual has received a certificate as a certified
public accountant under Section 34-1-4 and , if in public
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public accountant under Section 34-1-4 and , if in public
practice, holds a permit issued under Section 34-1-11, which
is not revoked or suspended, hereinafter referred to as a live
permit, and all of the offices of the person individual in this
state for the practice of public accounting are maintained and
registered as required under Section 34-1-10, or the
person individual is practicing pursuant to Section 34-1-7;
provided, however:
(1) A foreign accountant who has registered under
Section 34-1-5 and who holds a live permit issued under
Section 34-1-11 may use the title under which he or she is
generally known in his or her country, followed by the name of
the country from which the certificate, license, or degree was
received .;
(2) No firm with an office in this state shall provide
attest services or assume or use the title or designation
"certified public accountants" or the abbreviation "CPAs" or
any other title, designation, words, letters, signs,
abbreviation, card cards, or device tending to other advertising
means that indicate that the firm is composed of a certified
public accountants accounting firm , unless the firm is
registered as a firm of certified public accountants under
Section 34-1-6, holds a live permit issued under Section
34-1-11, and all of the offices of the firm in this state for
the practice of public accounting are maintained and
registered as required under Section 34-1-10, and ownership of
the firm is in accord with this chapter and rules
promulgated adopted by the board .;
(3) No person individual shall assume or use the title
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(3) No person individual shall assume or use the title
or designation "public accountant," the abbreviation thereof,
or any other title, designation, words, letters, abbreviation,
sign, card, or device tending to indicate that the
person individual is a public accountant, unless the
person individual is registered as a public accountant under
Section 34-1-8, holds a live permit issued under Section
34-1-11, and all of the offices of the person individual in
this state for the practice of public accounting are
maintained and registered as required under Section 34-1-10 or
unless the person individual has received a certificate as a
certified public accountant under Section 34-1-4, holds a live
permit issued under Section 34-1-11, and all of the offices of
the person individual in this state for the practice of public
accounting are maintained and registered as required under
Section 34-1-10 .;
(4) No firm shall provide attest services or assume or
use the title or designation "public accountant" or any other
title, designation, words, letters, abbreviation, sign, card,
or device tending to indicate that the firm is composed of
public accountants, unless the firm is registered as a firm of
public accountants under Section 34-1-9, or as a firm of
certified public accountants under Section 34-1-5, holds a
live permit issued under Section 34-1-11, and all of the
offices of the firm in this state for the practice of public
accounting are maintained and registered as required under
Section 34-1-10 .;
(5) No person individual or firm shall assume or use the
title or designation "accredited accountant," "certified
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title or designation "accredited accountant," "certified
accountant," "chartered accountant," "enrolled accountant,"
"licensed accountant," "registered accountant," or any other
title or designation likely to be confused with "certified
public accountant" or "public accountant," or any of the
abbreviations "AA," "CA," "LA," "RA," or similar abbreviations
likely to be confused with "CPA" or "PA." The title "enrolled
agent" or "EA" may be used by only individuals so designated
by the Internal Revenue Service. Notwithstanding the
foregoing, any person individual who holds a live permit issued
under Section 34-1-11, and all of whose offices in this state
for the practice of public accounting are maintained and
registered as required under Section 34-1-10, or who is
practicing pursuant to Section 34-1-7, may hold himself or
herself out to the public as an "accountant" or "auditor." A
foreign accountant registered under Section 34-1-5 who holds a
live permit issued under Section 34-1-11 and all of whose
offices in this state for the practice of public accounting
are maintained and registered as required under Section
34-1-10 may use the title under which he or she is generally
known in his or her country, followed by the name of the
country from which he or she received the certificate,
license, or degree .;
(6) No person individual shall sign or affix his or her
name or any trade or assumed name used in the
person's individual's profession or business, with any wording
indicating that he or she has expert knowledge in accounting
or auditing, to any opinion, report, or certificate attesting
in any way to the reliability of any representation or
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in any way to the reliability of any representation or
estimate in regard to any person or organization embracing
financial or attested information or facts respecting
compliance with conditions established by law or contract,
including but not limited to statutes, ordinances,
regulations, grants, loans, and appropriations, unless he or
she holds a live permit issued under Section 34-1-11, and all
of the offices in this state for the practice of public
accounting are maintained and registered under Section
34-1-10, or unless the person individual is practicing pursuant
to Section 34-1-7. Notwithstanding the foregoing, this
subdivision shall not prohibit any officer, employee, partner,
or principal of any organization from affixing his or her
signature to any statement or report in reference to the
financial affairs of the organization with any wording
designating the position, title, or office whichthat he or she
holds in the organization, nor shall this subdivision prohibit
any act of a public official or public employee in the
performance of theirhis or her duties .; and
(7) No person individual shall sign or affix the name of
the firm , with any wording indicating that it is a firm
composed of accountants or auditors or persons individuals
having expert knowledge in accounting or auditing, to any
opinion, report, or certificate attesting in any way to the
reliability of any representation or estimate in regard to any
person or organization embracing financial or attested
information or facts respecting compliance with conditions
established by law or contract, including , but not limited to ,
statutes, ordinances, regulations, grants, loans, and
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statutes, ordinances, regulations, grants, loans, and
appropriations, unless the firm holds a live permit issued
under Section 34-1-11, and all of its offices in this state
for the practice of public accounting are maintained and
registered as required under Section 34-1-10, or the
person individual is practicing pursuant to Section 34-1-7.
(8) No person individual shall assume or use the title
or designation "certified public accountant" or "public
accountant" in conjunction with names indicating or implying
that there is a firm, in conjunction with the designation "and
company" and "and co." or a similar designation if there is in
fact no bona fide firm registered under Section 34-1-6 or
Section 34-1-9, unless the person individual is practicing
pursuant to Section 34-1-7. No person individual holding a
certificate or registration or firm holding a permit under
this chapter or person individual practicing pursuant to
Section 34-1-7 shall use a professional or firm name or
designation that is misleading about the legal form of the
firm, or about the persons individuals who are partners,
officers, members, managers, or shareholders of the firm, or
about any other matter. This section shall not prevent a firm
or its successors from continuing to practice under a firm
name which consists of or includes the name or names of one or
more former owners.
(9) Only licensees holding a valid permit to practice
or practicing pursuant to Section 34-1-7 may issue a report on
financial statements of any other person individual , firm,
organization, or governmental unit or otherwise offer to
render any attest service, as defined herein. This restriction
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render any attest service, as defined herein. This restriction
does not prohibit any act of a public official or public
employee in the performance of that person's individual's
duties as such; or prohibit the performance by any
person individual of other services involving the use of
accounting skills, including the preparation of tax returns,
management advisory services, and the preparation of financial
statements without the issuance of reports thereon. This
restriction also does not apply to nonlicensees, who may
prepare financial statements and issue reports thereon which
do not purport to be in compliance with the Statements on
Standards for Accounting and Review Services (SSARS).
(10) Licensees and individuals who have practice
privileges under Section 34-1-7 performing attest or
compilation services must provide those services in accordance
with professional standards.
(11) Nonlicensees may not use language in any statement
relating to the affairs of a person an individual or entity
which is conventionally used by licensees in reports on
financial statements or on any attest service as defined in
Section 34-1-2. In this regard, the board shall issue, by
rule, safe harbor language nonlicensees may use in connection
with such financial information. Notwithstanding the
foregoing, nonlicensees may use the following disclaimer
language in connection with financial statements to not be in
violation of this chapter:
"I (We) have prepared the accompanying (financial
statements) of (name of entity) as of (time period) for the
(period) then ended. This presentation is limited to preparing
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(period) then ended. This presentation is limited to preparing
in the form of financial statements information that is the
representation of management (owners). "
"I (We) have not audited or reviewed the accompanying
financial statements and accordingly do not express an opinion
or any other form of assurance on them."
(12) No holder of a certificate issued under Section
34-1-4 or a registration issued under Section 34-1-8, except a
person an individual practicing pursuant to Section 34-1-7,
shall perform attest services in any firm that does not hold a
valid permit to practice issued under Section 34-1-11.
(13) No individual licensee shall issue a report in
standard form upon a compilation of financial information
through any form of business that does not hold a valid permit
issued under Section 34-1-11 unless the report discloses the
name of the business through which the individual is issuing
the report, and the individual:
a. Signs the compilation report identifying the
individual as a certified public accountant or public
accountant .; and
b. Undergoes no less frequently than once every three
years, a peer review conducted in such manner as the board
shall by rule specify.
(14) Nothing hereinin this section shall prohibit a
practicing attorney or firm of attorneys from preparing or
presenting records or documents customarily prepared by an
attorney or firm of attorneys in connection with the
attorney's professional work in the practice of law."
Section 3. This act shall become effective on October
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Section 3. This act shall become effective on October
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HB59 Enrolled
Page 34
1, 2026.
________________________________________________
Speaker of the House of Representatives
________________________________________________
President and Presiding Officer of the Senate
House of Representatives
I hereby certify that the within Act originated in and
was passed by the House 20-Jan-26.
John Treadwell
Clerk
Senate 22-Jan-26 Passed
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