This Rule is promulgated pursuant to sections 12-20-204, 12-100-105(1)(b), and 12-100-117(2), C.R.S.
A. SCOPE OF THE PRACTICE PRIVILEGE A licensee who qualifies for the Practice Privilege under Rule 1.14 may provide Professional Services in this state and shall be deemed to have all the privileges of a certificate holder or registrant without the need to obtain a Colorado certificate or firm registration. No notice or other submission shall be required of any such licensee. Such licensee is subject to the provisions of section 12-100-117(2)(c), C.R.S., and these Rules.
B. REQUIREMENTS 1. Individual Practice Privilege requirements.
a. An individual shall be presumed to have qualifications substantially equivalent to this state's requirements and shall have all the privileges of a certificate holder without the need to obtain a certificate under section
12-100-107, C.R.S., if:
(1) The individual's principal place of business is not in this state. For purposes of this Rule 1.14 , "Principal Place of Business" is presumed to be the location designated by the individual, but the presumption will be overcome if:
(1) the individual establishes residency in this state; and
(2) the individual provides or offers professional services to his employer or to a client or potential client located in this state. Provided further that if the individual submits an application for a Colorado certificate within sixty days of establishing residency in this state, the individual may continue to have all the privileges of a certificate holder until such time as a Colorado certificate is granted or denied; and
(2) The individual holds an active certificate or license issued by any state that NASBA's national qualification appraisal service has verified to be substantially equivalent to the CPA licensure requirements of the AICPA/ NASBA Uniform Accountancy Act (UAA); or
(3) The individual holds an active certificate or license issued by any state that NASBA's national qualification appraisal service has not verified to be substantially equivalent with the CPA licensure requirements of the UAA, but such individual obtains from NASBA's national qualification appraisal service verification that such individual's CPA qualifications are substantially equivalent to the CPA licensure requirements of the UAA. Any individual who has passed the examination and holds an active certificate or license issued by any other state prior to January 1, 2012, shall be exempt from the education requirements in the UAA.
2. Firm Practice Privilege requirements.
Notwithstanding section 12-100-114, C.R.S., a foreign partnership, corporation, limited partnership, limited liability limited partnership, or limited liability company that has an active/valid certificate, license, or registration to practice public accountancy issued by another state that satisfies the requirements of section 12-100-117(2)(a), C.R.S., may engage in the practice of accountancy in this state without registering with the Board.
3. Contact information required.
Every licensee providing professional services in this state shall provide contact information to clients as required under section 12-100-112(2), C.R.S.
C. DISCIPLINE FOR HOLDERS OF THE PRACTICE PRIVILEGE 1. Practice Privilege Holders.
Licensees who hold a practice privilege are subject to the jurisdiction and the disciplinary authority of the Board pursuant to section 12-100-117(2)(c), C.R.S. The Board may deny, revoke, suspend, or impose other conditions and limitations on the practice privilege, or may fine, issue a letter of admonition, place on probation, or impose other conditions or limitations on a licensee practicing under the practice privilege for any of the grounds for discipline specified in section 12-100-120(1), C.R.S., with the exception of section 12-100-120(1)(h), (i), and (n).
2. Licensees holding the practice privilege are subject to the disclosure requirements as described in Rules 1.9(E) and 1.15(G).
D. FOREIGN INDIVIDUALS 1. An individual who holds a degree, certificate, or license in a foreign country to practice public accounting may provide professional services in this state without a certificate issued under the Act or a certificate or license issued by another U.S. jurisdiction, provided that: The degree, certificate, or license is a recognized qualification for the practice of public accounting in that country and the certificate or license is active and in good standing;
2. The individual's principal place of business, as defined in Rule 1.14 , is not in this state; and
3. The practice is incident to the individual's regular practice outside this state. "Incident to" means the professional services provided are temporary and a subordinate component of professional services otherwise performed outside of this state.
4. Individuals who practice public accounting under this Rule 1.14 are subject to the jurisdiction and disciplinary authority of the Board. The Board may deny, revoke, suspend, or impose other conditions and limitations on the privilege to practice under this Rule 1.14(D) (the "Foreign Practice Privilege"), or may fine, issue a letter of admonition, place on probation, or impose other conditions or limitations on an individual practicing under the foreign practice privilege any of the grounds for discipline specified in section 12-100-120(1), C.R.S., with the exception of section 12-100-120(1)(h), (i), and (n).
5. An individual who meets the requirements of Rule 1.14 is not required to submit any notice or fee to the Board as a condition of practicing. But the individual must respond to all Board communications within thirty days and must submit all information as requested in connection with an investigation or action initiated under Rule 1.14 (D)(2).
E. REQUIREMENT TO REPORT DISCIPLINE 1. If the certificate, license, registration, or other authority to practice of an individual or firm is limited or subject to any form of discipline while the individual or firm is exercising its practice privilege under this Rule 1.14, the individual or firm must notify the Board, in a manner prescribed by the Board, of the limitation or discipline within thirty days of the action taken.
Notes
3 CCR 705-1.14
44 CR 03, February 10, 2021, effective 3/2/2021 44 CR 20, October 25, 2021, effective 11/14/2021 45 CR 11, June 10, 2022, effective 6/30/2022 45 CR 17, September 10, 2022, effective 9/30/2022 45 CR 20, October 25, 2022, effective 11/14/2022
