HB 1870 Summary

• Establishes practice privileges for out-of-state certified public accountants (CPAs) licensed in other states to provide services in Hawaii without obtaining a Hawaii license, subject to substantial equivalency requirements verified by the National Association of State Boards of Accountancy.

• Out-of-state CPAs exercising practice privileges must consent to Hawaii Board of Public Accountancy jurisdiction, comply with Hawaii law and board rules, notify the board of disciplinary actions or criminal convictions, and cease practice if their home state license becomes invalid.

• Out-of-state CPAs with practice privileges performing certain attest services (audits, examinations of prospective financial information, Public Company Accounting Oversight Board engagements) for clients with home offices in Hawaii must work through an accountancy firm holding a Hawaii permit.

• Adds definitions for "compilation," "home office," "practice privilege," "principal place of business," "substantial equivalency," and "Uniform Accountancy Act" to Hawaii Revised Statutes Chapter 466.

• Takes effect January 1, 2019, and makes conforming amendments to licensing, permitting, disciplinary, and peer review requirements for accountancy firms and practitioners.