Rhode IslandH81282026 Regular SessionHouse

AN ACT RELATING TO BUSINESSES AND PROFESSIONS -- PUBLIC ACCOUNTANCY .

Sponsored By: Stephen M. Casey (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

16 provisions identified: 6 benefits, 5 costs, 5 mixed.

Easier cross-state CPA work in Rhode Island

CPAs licensed in another state can practice in Rhode Island without notice or fees if their main office is elsewhere and they meet set pathways. You and your firm accept Rhode Island Board authority and must follow Rhode Island rules. If your home license lapses, you must stop work here. Any attest or compilation work must be done through a CPA firm that meets Rhode Island requirements. The Board adopts rules to run these mobility privileges.

License path for foreign-trained accountants

The Board can license accountants who hold a foreign credential that is substantially equivalent. The Board may require a national qualifying exam and a Rhode Island law and ethics test. Licenses follow the same fees, renewals, and continuing education rules. Applicants must list other jurisdictions and report key actions within 30 days. Licensed foreign accountants may use their home-country title in English and name the country.

Stronger penalties for unlicensed or illegal practice

The Board can quickly hold a hearing (within 10–20 days) and order you to stop unlicensed practice. The Board can get court injunctions without posting a bond, and courts must award the Board attorney fees. After a hearing, fines can reach $1,000 per violation for licensees and $2,500 per violation for unregistered practice. Criminal penalties apply on conviction: up to $1,000 and/or one year in jail for individuals, and up to $5,000 for entities. The Board can refer cases to the Attorney General, and violators can be made to pay the Board’s reasonable attorney fees.

Firm permits, ownership, and supervision rules

Firms that do attest or compilation work for Rhode Island clients, or use the CPA title here, must hold a Rhode Island practice-unit permit. Each Rhode Island office must be listed, and a Rhode Island licensee must be in charge of attest and compilation work. A majority of ownership and voting rights must belong to licensed CPAs; non‑licensee owners must be active and a Rhode Island licensee must be designated. You must report ownership, office, supervisor, and out‑of‑state permit changes within 30 days. The Board sets application and renewal fees, and firms that fall out of compliance must fix issues quickly or risk suspension or revocation.

Set minimum license fee and stricter renewals

The three‑year CPA license renewal fee is at least $375, paid when you file the renewal. If your practice unit breaks key rules and you were personally and substantially responsible, the Board can refuse to renew your license.

Modernized CPA exam and licensing rules

Students in dual‑degree programs can sit for the CPA exam once they finish bachelor’s requirements, including accounting coursework. The Board can use AICPA/NASBA exam and grading services and hire contractors, and it sets exam rules, fees, grading, passing scores, and cheating penalties. The law also standardizes the CPA credential name to “license.”

Peer review info sharing allowed

Licensees and their employees may share confidential client information with other licensees for peer reviews. They may also share information with a professional association or the Board for ethics investigations. These disclosures are only for peer review or ethics purposes.

Stronger protections in accounting services

Only licensed CPAs, or those using approved mobility, may prepare or sign attest or compilation reports, and their firm must hold a permit or qualify for firm mobility. People without a license cannot hold out as an accountant or auditor. Only IRS‑designated people may use the title “Enrolled Agent” or “EA.” Firm names cannot mislead about legal form or owners. CPAs cannot take commissions or contingent fees for clients when performing attest or compilation work, and cannot charge contingent fees to prepare tax returns or refund claims. Firms may use non‑CPA employees, but they cannot sign reports in their own name.

National standards and stronger board oversight

Rhode Island adopts national standards for audits, reviews, compilations, and related services. The Board has five members: four CPAs in public practice with at least 10 years’ experience and one public‑sector member. Members serve five‑year terms, three form a quorum, and the governor must remove any member whose CPA license is revoked, suspended, or not renewed.

Clear rules on commissions and contingent fees

You must disclose in writing when you are paid or expect a commission, or when you accept or pay a referral fee, before or at the time of the referral. An “affiliated entity” means one where you and your firm’s people own more than 20%; those relationships count for disclosure rules. If you take commissions or contingent fees, you must follow federal and state securities laws and the Board’s conduct code. A contingent fee is paid only if a result happens; fees set by a court or based on court or agency findings in tax matters are not contingent.

New rules for CPA firm ownership and permits

CPA firms must be majority-owned and controlled by licensed accountants. A sole proprietor must hold a Rhode Island CPA or public accountant license and list every Rhode Island office in the permit filing. Practice unit permits last three years and expire on the last day of June; renew by June 30 in the expiration year. The law clarifies that practice units include sole proprietors, corporations, partnerships, LLCs, and LLPs. The Office of the Auditor General is also treated as a practice unit.

Title use and non-CPA services clarified

Only licensed CPAs, or those using approved mobility, may use the CPA title or offer attest or compilation services through permitted firms. Non‑licensees may still offer bookkeeping, prepare financial statements and tax returns, and give tax advice, but may not perform or present attest or compilation work or mislead the public. The Board can allow certain non‑misleading professional titles if you prove national certification. Officers and employees may sign reports about their own entity and list their job title.

Easier cross-state CPA practice, with reporting

Your principal place of business is the office you choose for mobility and reciprocity. If you apply for or hold a reciprocity license, you must list all other states where you applied or are licensed and notify the Rhode Island Board in writing within 30 days of any issuance, denial, suspension, revocation, or the start of any discipline in another state.

License renewals, reports, and discipline process

CPA licenses last three years and expire June 30; renewal requires proof of continuing education. You must tell the Board in writing within 30 days about out‑of‑state licensing or disciplinary actions. If denied a license or renewal, you may request a Board hearing within 10 days. The Board can suspend, revoke, limit practice, put you on probation, or fine up to $1,000 after notice and hearing, and can order repayment of fees and attorney costs. The Board may deny a license for dishonest or felonious acts tied to professional duties and provides written findings and hearing rights; you can seek reinstatement later.

RI license path for out-of-state CPAs

You can get a Rhode Island license by reciprocity if you passed the CPA exam, have at least four years of recent qualifying experience, and meet CPE rules for older licenses. If you plan to make Rhode Island your principal place of business, you must apply for a Rhode Island license before you set up. Nonresidents who apply appoint the Rhode Island Secretary of State to receive legal papers for practice-related matters.

Board keeps fees in restricted account

All accountancy fees go to the General Treasurer and are kept in a restricted receipt account. The money is used only to pay Board administration and enforcement costs.

Sponsors & Cosponsors

Sponsor

Stephen M. Casey
Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 67 • No: 0

House vote • 5/26/2026

PUBLIC ACCOUNTANCY PASSAGE