Fifty-fourth Legislature

Second Regular Session

SENATE: COM DP 5-0-3-0 | 3rd Read 29-0-1-0
House: RA DP 7-0-0-0 | 3rd Read 48-11-1-0

SB 1131: certified public accountants

Sponsor:  Senator Gray, LD 21

Transmitted to the Governor


Modifies Certified Public Accountants (CPA) requirements regarding firm registration, registration expiration and reinstatement.  


Certified public accountant (CPA) means an individual who has been issued a certificate of authority by the board to practice as a certified public accountant or who meets the limited reciprocity privilege requirements (A.R.S. § 32-701).

An individual whose certificate status expires or is relinquished or revoked can request for the certificate to be reinstated if the individual meets specified requirements, including at least thirty semester hours of accounting-related courses (A.R.S. § 32-732).

The Arizona Board of Accountancy (Board) can employ an Executive Director (Director) to administer and enforce statute governing a CPA (A.R.S. § 32-703).

A partnership, corporation or other entity formed under the laws of another jurisdiction relating to the practice of accounting in that jurisdiction may use the CPA designation in this state and may engage in the practice of accounting in this state (A.R.S. § 32-725).

A registrant's certificate or registration is expired if the registrant fails to reinstate the certificate or registration within twelve months after it has been suspended or has been on inactive status for more than six years (A.R.S. § 32-730-03)


1.    Modifies the definition of related courses to include other courses that are closely related to the subject of accounting or that are satisfactory to the Board.  (Sec. 1) 

2.    Allows the Board to delegate to the Director the authority to approve a request for continuing professional education reciprocity.  (Sec. 2) 

3.    Allows a business organization, rather than just a partnership or corporation, of another jurisdiction to use the CPA designation in this state and engage in the practice of accounting without having to register as a firm provided certain criteria are met.  (Sec. 3)

4.    States that a CPA's certificate or registration is expired if the CPA fails to meet registration requirements for a firm and is not granted or exhausts an extension of time to comply with firm registration requirements.  (Sec. 5)

5.    ☐ Prop 105 (45 votes)	     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes)	☐ Fiscal NoteAdds to the criteria regarding firm registration fees to include an individual who uses a CPA designation, unless the name used is the name of the individual as registered with the Board.  (Sec. 7) 

6.    Removes language relating to the Board revoking a firm's registration if the firm is not qualified and has not been granted a time extension to comply with the requirements.  (Sec. 9)

7.    States that a registrant, individual or firm that qualifies for the limited reciprocity privilege must be known as a CPA or a CPA firm and can use the CPA designation with the exact name as registered with the Board.  (Sec. 10)  

8.    Makes technical and conforming changes.  (Sec. 1, 3-10)



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12.                    SB 1131

13.  Initials JR  Page 0 Transmitted


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