Amends, repeals, and adds to existing law to revise provisions regarding the licensure of certified public accountants.

LEGISLATURE OF THE STATE OF IDAHO Sixty-eighth Legislature Second Regular Session - 2026 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 563 BY BUSINESS COMMITTEE AN ACT1 RELATING TO CERTIFIED PUBLIC ACCOUNTANTS; AMENDING SECTION 54-204, IDAHO2 CODE, TO REVISE A PROVISION REGARDING THE POWERS AND DUTIES OF THE IDAHO3 STATE BOARD OF ACCOUNTANCY; AMENDING SECTION 54-207, IDAHO CODE, TO4 REVISE PROVISIONS REGARDING EDUCATIONAL REQUIREMENTS FOR A CERTIFIED5 PUBLIC ACCOUNTANT; AMENDING SECTION 54-208, IDAHO CODE, TO REVISE PRO-6 VISIONS REGARDING QUALIFICATIONS FOR A CERTIFIED PUBLIC ACCOUNTANT;7 AMENDING SECTION 54-209, IDAHO CODE, TO REVISE PROVISIONS REGARDING EX-8 PERIENCE REQUIRED FOR A CERTIFIED PUBLIC ACCOUNTANT; REPEALING SECTION9 54-227, IDAHO CODE, RELATING TO SUBSTANTIAL EQUIVALENCY REQUIREMENTS10 FOR A CERTIFIED PUBLIC ACCOUNTANT; AMENDING CHAPTER 2, TITLE 54, IDAHO11 CODE, BY THE ADDITION OF A NEW SECTION 54-227, IDAHO CODE, TO ESTABLISH12 PROVISIONS REGARDING PRACTICE PRIVILEGES OF CERTAIN CERTIFIED PUBLIC13 ACCOUNTANTS LICENSED IN ANOTHER STATE AND TO PROVIDE AN EXCEPTION; AND14 DECLARING AN EMERGENCY AND PROVIDING AN EFFECTIVE DATE.15

Be It Enacted by the Legislature of the State of Idaho:16

SECTION 1. That Section 54-204, Idaho Code, be, and the same is hereby17 amended to read as follows:18 54-204. POWERS AND DUTIES. The Idaho state board of accountancy, in19 addition to the other powers and duties set forth in this chapter, shall have20 the following powers and duties:21 (1) To adopt and amend rules, subject to legislative approval, in ac-22 cordance with the provisions of the administrative procedure act, chapter23 52, title 67, Idaho Code, governing its administration and the enforcement24 of this chapter and the conduct of licensees including, but not limited to:25 (a) Rules governing the board's meetings and the conduct of its busi-26 ness;27 (b) Rules of procedure governing the conduct of investigations and28 hearings by the board;29 (c) Rules specifying the education, examination and experience quali-30 fications required for the issuance of certificates, and the continuing31 professional education required for renewal of licenses;32 (d) Rules of professional conduct directed to controlling the quality33 and probity of professional services by licensees, and dealing among34 other things with independence, integrity and objectivity; competence35 and technical standards; responsibilities to the public; and responsi-36 bilities to clients;37 (e) Rules governing the professional standards applicable to li-38 censees;39 (f) Rules governing the manner and circumstances of use of the titles40 "certified public accountant" and "licensed public accountant";41

2 (g) Rules regarding peer reviews that may be required to be performed1 under the provisions of this chapter;2 (h) Rules on reciprocity and substantial equivalency to implement the3 provisions of section 54-227 54-210, Idaho Code;4 (i) Rules adopting statements on standards as specified in section5 54-206, Idaho Code, which, if the board may deem appropriate, shall6 be those standards developed for general application by recognized7 accountancy organizations such as the AICPA, as such statements are8 established from time to time; and9 (j) Such other rules as the board may deem necessary or appropriate to10 implement or administer the provisions and purposes of this chapter.11 (2) To issue original certificates of qualification and licenses to12 practice as certified public accountants to such applicants as may be quali-13 fied by reciprocity, transfer of examination grades or by examination.14 (3) To charge and collect from all applicants, certificate holders, and15 licensees such fees as are provided by this chapter and prescribed by rules16 of the board.17 (4) To initiate or receive complaints, cause the same to be investi-18 gated, initiate proceedings, and conduct hearings or proceedings pursuant19 to chapter 2, title 54, Idaho Code. The board may designate a member, or any20 other person of appropriate competence, to serve as investigating officer to21 conduct an investigation. Upon completion of an investigation, the investi-22 gating officer shall file a report with the board. Unless dismissed by the23 board as unfounded or trivial, the board may proceed with disciplinary pro-24 ceedings or may return the report to the investigating officer for further25 investigation.26 (a) In order to protect the interests of a complainant, witness, third27 party or defendant, the board may upon application and for good cause28 shown, issue a protective order, consistent with chapter 1, title 74,29 Idaho Code, prohibiting the disclosure of specific information other-30 wise not privileged and confidential and direct that the proceedings be31 conducted so as to implement the order.32 (b) In carrying into effect the provisions of this chapter, the board33 may subpoena witnesses and compel their attendance, and also may re-34 quire the submission of books, papers, documents or other pertinent35 data; may administer oaths; may take testimony; may cooperate with the36 appropriate authorities in other states in investigation and enforce-37 ment concerning violations of this chapter and comparable acts of other38 states; and may receive evidence in any disciplinary matters or in any39 case wherever a violation of the provisions of this chapter is alleged.40 Upon failure or refusal to comply with any such order of the board, or41 upon failure to honor its subpoena, the board may apply to the court in42 the district where the witness resides to enforce compliance.43 (5) To authorize by written agreement the division of occupational and44 professional licenses as agent to act in its interest.45 (6) Any action, claim or demand to recover money damages from the board46 or its employees which any person is legally entitled to recover as compensa-47 tion for the negligent or otherwise wrongful act or omission of the board or48 its employees, when acting within the course and scope of their employment,49 shall be governed by the Idaho tort claims act, chapter 9, title 6, Idaho50

3 Code. For purposes of this subsection, the term "employees" shall include1 special assignment members of the board and other independent contractors2 while acting within the course and scope of their board related work.3 (7) All hearings, investigations or proceedings conducted by the board4 shall be conducted in conformity with chapter 52, title 67, Idaho Code, and5 rules of the board adopted pursuant thereto, and, unless otherwise requested6 by the concerned party, be subject to disclosure according to chapter 1, ti-7 tle 74, Idaho Code.8

SECTION 2. That Section 54-207, Idaho Code, be, and the same is hereby9 amended to read as follows:10 54-207. LICENSE -- APPLICATION. (1) Any person desiring a certificate11 and license shall make a written application for such certificate and li-12 cense to the board, upon forms to be prescribed and furnished by the board.13 Such application shall be filed and shall be accompanied by such fee as may be14 required by rules of the board.15 (2) In addition to meeting the qualifications provided elsewhere in16 this chapter, before a certificate and license may be issued, a person17 desiring to receive a certificate and license shall have satisfactorily18 completed a minimum of one hundred fifty (150) semester hours, or two hundred19 twenty-five (225) quarter hours, of college education, with a concentration20 in accounting, auditing and business, including a baccalaureate or higher21 degree at a college or university acceptable to the board, as established by22 rule. Satisfactory evidence in the form of an official transcript received23 directly from the school registrar indicating the credits and degree re-24 ceived shall be presented to the board to demonstrate successful completion25 of these education requirements. one of the following educational pathways:26 (3) The board may adopt rules allowing persons who met the education re-27 quirements of section 54-208, Idaho Code, when they first sat for the exami-28 nation to become licensed even though they do not meet the education require-29 ments of this section.30 (a) A postbaccalaureate degree conferred by a college or university ac-31 ceptable to the board, in an educational program that includes an ac-32 counting concentration or equivalent, as specified in subsection (3) of33 this section;34 (b) A baccalaureate degree plus an additional thirty (30) semester35 credit hours, conferred by a college or university acceptable to the36 board, in an educational program that includes an accounting concentra-37 tion or equivalent as specified in subsection (3) of this section; or38 (c) A baccalaureate degree conferred by a college or university accept-39 able to the board, in an education program that includes an accounting40 concentration or equivalent as specified in subsection (3) of this sec-41 tion.42 (3) An applicant's education shall be deemed to meet the requirements43 of subsection (2) of this section if it meets one (1) of the following condi-44 tions:45 (a) The applicant has earned a graduate degree with a concentration in46 accounting from a program that is accredited in accounting by an accred-47 iting agency approved by the board;48

4 (b) The applicant has earned a graduate degree from a program that is1 accredited in business by an accrediting agency approved by the board2 that includes completion of at least twenty-four (24) semester hours in3 accounting, excluding introductory courses, at the undergraduate level4 or fifteen (15) semester hours at the graduate level, or an equivalent5 combination thereof satisfactory to the board, including coverage of,6 but not necessarily separate courses in, the subjects of data analyt-7 ics, financial accounting, auditing, taxation, and management account-8 ing; or9 (c) The applicant has earned a baccalaureate degree at an institution10 approved by the board or from a program that is accredited in business by11 an accrediting agency approved by the board, including completion of at12 least twenty-four (24) semester hours in business, other than account-13 ing courses, and twenty-four (24) semester hours or an equivalent com-14 bination thereof satisfactory to the board in accounting, excluding in-15 troductory courses, that included coverage of, but not necessarily sep-16 arate courses in, the subjects of data analytics, financial accounting,17 auditing, taxation, and management accounting.18 (4) Satisfactory evidence in the form of an official transcript re-19 ceived directly from the school registrar indicating the credits and degree20 received shall be presented to the board to demonstrate successful comple-21 tion of one (1) of the educational pathways identified in subsection (2) of22 this section.23

SECTION 3. That Section 54-208, Idaho Code, be, and the same is hereby24 amended to read as follows:25 54-208. EXAMINATION -- EDUCATION -- QUALIFICATIONS. (1) An applicant26 for admission to examination as a certified public accountant shall:27 (a) Be eighteen (18) years of age or older;28 (b) Be of good character;29 (c) Be a resident, have been a resident, or intend to immediately become30 a resident of the state of Idaho;31 (d) (c) Be approved by the board for admission to the examination; and32 (e) (d) Provide satisfactory evidence in the form of an official33 transcript received directly from the school registrar indicating34 successful completion of a baccalaureate degree or its equivalent, the35 required credits and courses to be prescribed by the rules of the board.36 satisfaction of at least one (1) of the educational requirements set37 forth in section 54-207, Idaho Code.38 (2) The examination required to be passed as a condition to granting a39 certificate shall test the applicant's knowledge of the subjects of account-40 ing and auditing, and such other related subjects as the board may specify by41 rule, including, but not limited to, business law and taxation. The time for42 holding such examination shall be determined by the board and may be changed43 from time to time. The board shall prescribe by rule the methods of apply-44 ing for and conducting the examination, including methods for grading and45 determining a passing grade required of an applicant for a certificate; pro-46 vided however, that the board shall endeavor to assure that the examination47 itself, grading of the examination, and the passing grades, are uniform with48 those of other states. The board may make use of all or any part of the uni-49

5 form certified public accountant examination and advisory grading service1 of the AICPA and may contract with third parties to perform such administra-2 tive services with respect to the examination as it deems appropriate to as-3 sist it in performing its duties hereunder.4 (3) The board may charge, or provide for a third party administering the5 examination to charge, each applicant a fee, in an amount prescribed by the6 board by rule.7 (4) None of the education requirements specified in this section shall8 apply to an applicant who is a licensed public accountant pursuant to this9 chapter.10

SECTION 4. That Section 54-209, Idaho Code, be, and the same is hereby11 amended to read as follows:12 54-209. EXPERIENCE. (1) An applicant of good character who success-13 fully passes the examination, with standards no less than those prescribed14 by the board's rules for examination of candidates in Idaho, and who fulfills15 the requirements of section 54-207, Idaho Code, shall receive a license as16 a certified public accountant if the applicant has completed one (1) year of17 experience. the applicable experience requirement as follows:18 (a) An applicant for initial issuance of a certificate under section19 54-207(2)(a) or (b), Idaho Code, shall show that the applicant has had20 one (1) year of experience as described in subsection (2) of this sec-21 tion.22 (b) An applicant for initial issuance of a certificate under section23 54-207(2)(c), Idaho Code, shall show that the applicant has had two (2)24 years of experience as described in subsection (2) of this section.25 (2) This The required experience shall include providing any type of26 service or advice involving the use of accounting, attest, compilation, man-27 agement advisory, financial advisory, tax or consulting skills, all of which28 have been performed under the supervision of and verified by an active li-29 censee, meeting requirements prescribed by the board by rule. This experi-30 ence may be gained through employment in government, industry, academia or31 public practice.32

SECTION 5. That Section 54-227, Idaho Code, be, and the same is hereby33 repealed.34

SECTION 6. That Chapter 2, Title 54, Idaho Code, be, and the same is35 hereby amended by the addition thereto of a NEW SECTION, to be known and des-36 ignated as Section 54-227, Idaho Code, and to read as follows:37 54-227. PRACTICE PRIVILEGES. (1) An individual whose principal place38 of business is not in the state of Idaho and who holds a valid active license39 in good standing as a certified public accountant from any other state shall40 have all the practice privileges of licensees of this state without the need41 to obtain a license under this chapter, provided that such individual meets42 the minimum educational and experience requirements set forth in sections43 54-207 and 54-209, Idaho Code.44 (2) Notwithstanding any other provision of law, an individual identi-45 fied in subsection (1) of this section who offers or renders professional46

6 services, whether in person, by mail, telephone, or electronic means, or in1 any other way, by this section is granted practice privileges in this state,2 and no notice or other submission shall be required of any such individual.3 (3) An individual licensed in another state who exercises the practice4 privilege afforded under this section and the firm that employs that li-5 censee are deemed to simultaneously consent, as a condition of the grant of6 this privilege:7 (a) To the personal and subject matter jurisdiction and disciplinary8 authority of the board;9 (b) To comply with the provisions of this chapter and applicable board10 rules;11 (c) That in the event the license from the state of the individual's12 principal place of business is no longer valid, the individual will13 cease offering or rendering professional services in this state indi-14 vidually and on behalf of a firm; and15 (d) To the appointment of the state board that issued the individual's16 license as the agent upon whom process may be served in any action or17 proceeding by the Idaho board against the licensee.18 (4) An individual whose principal place of business is not in this state19 and who, as of December 31, 2024, held and continues to hold a valid active20 license as a certified public accountant from any state and has practice21 privileges in this state pursuant to section 54-227, Idaho Code, as that22 section existed on December 31, 2024, shall continue to have all the privi-23 leges of a licensee in this state without the need to obtain a license under24 sections 54-207 and 54-209, Idaho Code.25

SECTION 7. An emergency existing therefor, which emergency is hereby26 declared to exist, this act shall be in full force and effect on and after27 July 1, 2026.28