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LEGISLATIVE BILL 718
Approved by the Governor February 25, 2026
Introduced by Jacobson, 42.
A BILL FOR AN ACT relating to certified public accountants; to amend sections
1-114, 1-117, 1-125.01, 1-137, and 1-148, Reissue Revised Statutes of
Nebraska, and sections 1-116, 1-124, and 1-136.02, Revised Statutes
Cumulative Supplement, 2024; to eliminate obsolete provisions; to change
examination requirements; to change requirements for the practice of
certified public accountants credentialed outside of Nebraska; to change
and eliminate permitting requirements; to change provisions relating to
disciplinary actions; to harmonize provisions; to repeal the original
sections; and to outright repeal section 1-136.04, Reissue Revised
Statutes of Nebraska.
Be it enacted by the people of the State of Nebraska,
Section 1. Section 1-114, Reissue Revised Statutes of Nebraska, is amended
to read:
1-114 (1) Prior to January 1, 1998, the board shall issue a certificate
of certified public accountant to any person (a) who is a resident of this
state or has a place of business therein or, as an employee, is regularly
employed therein, (b) who has graduated from a college or university of
recognized standing, and (c) who has passed a written examination in
accounting, auditing, and such other related subjects as the board determines
to be appropriate.
The (2) On and after January 1, 1998, the board shall issue a certificate
as a certified public accountant to any person (1) (a) who is a resident of
this state or has a place of business in this state or, as an employee, is
regularly employed in this state, (2) (b) who has passed an examination in
accounting, auditing, and such other related subjects as the board determines
to be appropriate, and (3) (c) who has completed the educational requirements
specified in section 1-116.
Sec. 2. Section 1-116, Revised Statutes Cumulative Supplement, 2024, is
amended to read:
1-116 (1)(a) Prior to January 1, 2025, any person making initial
application to take the examination described in section 1-114 is eligible to
take the examination if he or she has completed at least one hundred fifty
semester hours or two hundred twenty-five quarter hours of postsecondary
academic credit and has earned a baccalaureate or higher degree from a college
or university accredited by an accrediting agency recognized by the United
States Department of Education or a similar agency as determined to be
acceptable by the board. The person shall demonstrate that accounting,
auditing, business, and other subjects at the appropriate academic level as
required by the board are included within the required hours of postsecondary
academic credit.
(b) Prior to January 1, 2025, a person who expects to complete the
postsecondary academic credit and earn the degree as required by this
subsection may take test sections of the examination within one hundred twenty
days prior to completing the postsecondary academic credit and earning the
degree, but such person shall not receive any credit for such test sections
unless evidence satisfactory to the board showing that such person has
completed the postsecondary academic credit and earned the degree as required
by this subsection is received by the board within one hundred fifty days
following when the first test section of the examination is taken.
(2)(a) On or after January 1, 2025, any person making initial application
to take the examination described in section 1-114 is eligible to take the
examination if he or she has completed at least one hundred twenty semester
hours or one hundred eighty quarter hours of postsecondary academic credit and
has earned a baccalaureate or higher degree from a college or university
accredited by an accrediting agency recognized by the United States Department
of Education or a similar agency as determined to be acceptable by the board.
The person shall demonstrate that accounting, auditing, business, and other
subjects at the appropriate academic level as required by the board are
included within the required hours of postsecondary academic credit.
(b) On or after January 1, 2025, no person is allowed to take any portion
of the examination prior to completing the academic credit and earning the
degree required by this subsection.
(1) Any person making initial application to take the examination
described in section 1-114 is eligible to take the examination if he or she has
earned a baccalaureate or higher degree from a college or university accredited
by an accrediting agency recognized by the United States Department of
Education or a similar agency as determined to be acceptable by the board. The
person shall demonstrate that accounting, auditing, business, and other
subjects at the appropriate level as required by the board are included within
the required hours of postsecondary academic credit.
(2) (3) The board shall not prescribe the specific curricula of colleges
or universities.
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(3) (4) If the applicant is an individual, the application shall include
the applicant's social security number.
Sec. 3. Section 1-117, Reissue Revised Statutes of Nebraska, is amended to
read:
1-117 Any person who has successfully completed the examination described
in section 1-114 shall have no status as a certified public accountant unless
and until such person he or she has the requisite education and experience and
also has been issued a certificate and permit as a certified public accountant.
Sec. 4. Section 1-124, Revised Statutes Cumulative Supplement, 2024, is
amended to read:
1-124 (1)(a) The board may, in its discretion, waive the examination
described in section 1-114 and may issue a reciprocal certificate as a
certified public accountant to any person who possesses the qualifications
specified in sections subdivision (2)(a) of section 1-114 and section 1-116 and
who is the holder of a certificate as a certified public accountant, then in
full force and effect, issued under the laws of any state or is the holder of a
certificate, license, or degree in a foreign country constituting a recognized
qualification for the practice of public accountancy in such country,
comparable to that of a certified public accountant of this state, which is
then in full force and effect.
(b) The board shall waive the examination described in section 1-114 and
the educational requirements specified in section 1-116 and shall issue a
reciprocal certificate as a certified public accountant to any person who
possesses the qualifications specified in subdivision (2)(a) of section 1-114,
who is the holder of a certificate as a certified public accountant, then in
full force and effect, issued under the laws of any state, who meets all other
current requirements of the board for issuance of a certificate as a certified
public accountant, and who, at the time of the application for a reciprocal
certificate as a certified public accountant, has had, within the ten years
immediately preceding application, at least four years of experience in the
practice of public accountancy specified in subdivision (1)(c) (1)(b) of
section 1-136.02.
(2) The board shall charge each person obtaining a reciprocal certificate
issued under this section a fee as established by the board not to exceed four
hundred dollars.
Sec. 5. Section 1-125.01, Reissue Revised Statutes of Nebraska, is amended
to read:
1-125.01 (1)(a) (1) A person who does not hold a certificate as a
certified public accountant or a permit issued under subdivision (1)(a) of
section 1-136 and who possesses an active permit, certificate, or license which
allows the person to engage in the practice of public accountancy as a
certified public accountant in another state and whose principal place of
business is outside this state shall have all the practice privileges of a
certified public accountant who holds a permit issued under subdivision (1)(a)
of section 1-136, including the use of the title or designation certified
public accountant or C.P.A., without the need to hold a certificate or a permit
issued under subdivision (1)(a) of section 1-136 , or to notify or register
with the board or pay any fee, if such person: .
(i) Has his or her principal place of business outside this state;
(ii) Holds an active license as a certified public accountant from any
other state; and
(iii) Was required to show evidence to the licensing body of the other
state of having passed the Uniform Certified Public Accountant Examination and
attained the minimum education and experience requirements defined by the board
at the time of initial licensure.
(b) However, a person is not eligible to exercise the practice privilege
afforded under this section if the person has a permit, certificate, or license
under current suspension or revocation for reasons other than nonpayment of
fees or failure to comply with continuing professional educational requirements
in another state.
(2) Any person of another state exercising the practice privilege afforded
under this section and any partnership, limited liability company, or other
allowed entity of certified public accountants which employ that person hereby
simultaneously consent, as a condition of the exercise of the practice
privilege:
(a) To the personal and subject-matter jurisdiction and disciplinary
authority of the board;
(b) To comply with the Public Accountancy Act and the rules and
regulations adopted and promulgated under the act;
(c) That in the event the authorization to engage in the practice of
public accountancy in the state of the person's principal place of business is
no longer valid, the person will cease offering or rendering professional
services in this state individually and on behalf of the person's partnership,
limited liability company, or other allowed entity of certified public
accountants; and
(d) To the appointment of the state entity which issued the person's
authorization to engage in the practice of public accountancy as the person's
agent upon whom process may be served in any action or proceeding by the board
against the person.
(3) The practice privilege afforded under this section or any other
section shall not be interpreted to prevent any governmental body from
requiring that public accounting services performed for a governmental body or
for an entity regulated by a governmental body be performed by a person or firm
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holding a permit issued under section 1-136.
(4) Any person who exercises the practice privilege afforded under this
section and who, for any entity with its home office in this state, performs
attestation services, may only do so through a firm or an affiliated entity
which holds a permit issued under section 1-136.
Sec. 6. Section 1-136.02, Revised Statutes Cumulative Supplement, 2024, is
amended to read:
1-136.02 (1)(a) (1) The board shall issue a permit under subdivision (1)
(a) of section 1-136 to a holder of a certificate as a certified public
accountant when such holder has completed:
(i) A postbaccalaureate degree and one year of experience;
(ii) A baccalaureate degree plus an additional thirty credit hours of
education and one year of experience; or
(iii) A baccalaureate degree and two years of experience.
(b) The degree required under this subsection shall be conferred by a
college or university accredited by an accrediting agency recognized by the
United States Department of Education or a similar agency as determined to be
acceptable by the board. The degree program shall include the accounting
subject areas or equivalent to be determined by the board.
(c) The experience acquired to satisfy the requirement under this
subsection shall be satisfactory to the board and shall include providing any
type of service or advice involving the use of accounting, attest, compilation,
management advisory, financial advisory, tax, or consulting skills. The
experience shall be under the supervision of an active certified public
accountant who is the holder of a permit issued under subdivision (1)(a) of
section 1-136 or the equivalent issued by another state. The experience may be
gained through employment in public practice, government, industry, or academia
as acceptable to the board.
(a) At least one hundred fifty semester hours or two hundred twenty-five
quarter hours of postsecondary academic credit and has earned a baccalaureate
or higher degree from a college or university accredited by a regional
accrediting agency as recognized by the United States Department of Education
or a similar agency as determined to be acceptable by the board. The person
shall demonstrate that accounting, auditing, business, and other subjects at
the appropriate academic level as required by the board are included within the
required hours of postsecondary academic credit; and
(b)(i) Two years of accounting experience satisfactory to the board, in
any state or foreign country, in employment as an accountant in a firm,
proprietorship, partnership, corporation, limited liability company, or other
business entity authorized in any state to engage in the practice of public
accountancy under the supervision of an active certified public accountant who
is the holder of a permit issued under subdivision (1)(a) of section 1-136 or
the equivalent issued by another state;
(ii) Except as provided in subdivision (b)(iii) of this subsection, three
years of accounting experience satisfactory to the board, in any state or
foreign country, in employment as (A) an accountant in government or business
under the supervision of an active certified public accountant who is the
holder of a permit issued under subdivision (1)(a) of section 1-136 or the
equivalent issued by another state or (B) faculty at a college or university of
recognized standing under the supervision of an active certified public
accountant who is the holder of a permit issued under subdivision (1)(a) of
section 1-136 or the equivalent issued by another state; or
(iii) Two years of accounting experience satisfactory to the board in
employment as an accountant in the office of the Auditor of Public Accounts or
the Department of Revenue under the supervision of an active certified public
accountant who is the holder of a permit issued under subdivision (1)(a) of
section 1-136 or the equivalent issued by another state.
(2) The board shall issue a permit under subdivision (1)(a) of section
1-136 to a holder of a reciprocal certificate issued under section 1-124 upon a
showing that:
(a) The applicant He or she meets all current requirements in this state
for issuance of a permit at the time the application is made; and
(b) At the time of the application for a permit , the applicant, within the
ten years immediately preceding application, met the meets an experience
requirement in subsection (1) subdivision (1)(b) of this section.
Sec. 7. Section 1-137, Reissue Revised Statutes of Nebraska, is amended to
read:
1-137 After notice and hearing as provided in sections 1-140 to 1-149, the
board may take disciplinary action as provided in section 1-148 for any one or
any combination of the following causes:
(1) Fraud or deceit in obtaining a certificate as a certified public
accountant or the practice privilege or temporary practice privilege,
registration, or a permit under the Public Accountancy Act;
(2) Dishonesty, fraud, or gross negligence in the practice of public
accountancy;
(3) Violation of any of the provisions of sections 1-151 to 1-161;
(4) Violation of a rule of professional conduct adopted and promulgated by
the board under the authority granted by the act;
(5) Conviction of a felony under the laws of any state or of the United
States;
(6) Conviction of any crime, an element of which is dishonesty or fraud,
under the laws of any state or of the United States;
(7) Cancellation, revocation, suspension, or refusal to renew authority to
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practice as a certified public accountant or a public accountant in any other
state, for any cause other than failure to pay a registration fee in such other
state;
(8) Suspension or revocation of the right to practice before any state or
federal agency; or
(9) Failure of a certificate holder or registrant to obtain a permit
issued under section 1-136, within either (a) three years from the expiration
date of the permit last obtained or renewed by the certificate holder or
registrant or (b) three years from the date upon which the certificate holder
or registrant was issued his or her certificate or registration if no permit
was ever issued to him or her, unless under section 1-136 such failure was
excused by the board pursuant to section 1-136.
Sec. 8. Section 1-148, Reissue Revised Statutes of Nebraska, is amended to
read:
1-148 Upon the completion of any hearing, the board, by majority vote,
shall have the authority through entry of a written order to take in its
discretion any or all of the following actions:
(1) Issuance of censure or reprimand;
(2) Suspension of judgment;
(3) Placement of the permitholder, certificate holder, registrant, or
person exercising the practice privilege or the temporary practice privilege on
probation;
(4) Placement of a limitation or limitations on the permit, certificate,
or registration and upon the right of the permitholder, certificate holder,
registrant, or person exercising the practice privilege or the temporary
practice privilege to practice the profession to such extent, scope, or type of
practice for such time and under such conditions as are found necessary and
proper;
(5) Imposition of a civil penalty not to exceed ten thousand dollars,
except that the board shall not impose a civil penalty under this subdivision
for any cause enumerated in subdivisions (5) through (9) of section 1-137 and
subdivisions (1) and (2) of section 1-138. The amount of the penalty shall be
based on the severity of the violation;
(6) Entrance of an order of suspension of the permit, certificate,
registration, or practice privilege or temporary practice privilege;
(7) Entrance of an order of revocation of the permit, certificate,
registration, or practice privilege or temporary practice privilege . A
revocation order under this subdivision shall be considered nondisciplinary if
it is issued for a failure under subdivision (9) of section 1-137;
(8) Imposition of costs as in ordinary civil actions in the district
court, which may include attorney and hearing officer fees incurred by the
board and the expenses of any investigation undertaken by the board; or
(9) Dismissal of the action.
Sec. 9. Original sections 1-114, 1-117, 1-125.01, 1-137, and 1-148,
Reissue Revised Statutes of Nebraska, and sections 1-116, 1-124, and 1-136.02,
Revised Statutes Cumulative Supplement, 2024, are repealed.
Sec. 10. The following section is outright repealed: Section 1-136.04,
Reissue Revised Statutes of Nebraska.
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