MACPA's other 2001 legislative efforts

Firm ownership by nonlicensees (HB 86)

Small firms will be able to attract experts through offers of firm ownership.

The non-CPA ownership bill passed in the Maryland House of Delegates and the Senate. Dawson Grove and Alicia Foster testified in favor of this bill in the initial hearing in the House in January. Carol Kirwan and Nick Manis testified in support of HB 86 on behalf of MACPA at a hearing on Tuesday, March 20 in the Senate Economic and Environmental Affairs Committee. Alicia Foster, as chair of the Board of Accountancy; Mark Feinroth, commissioner; and Harry Loleas, deputy commissioner, also were on hand to support this bill on behalf of the DLLR. There was no opposition.

Maryland has experienced success with the non-CPA ownership bill while many other states face tough opposition. This can be credited to the positive relationship MACPA established with the Maryland State Bar Association in advance and the open communication we continue to maintain on this subject. Our lobbyist, Nick Manis, has helped greatly in this effort. Cathy Landau-Painter, director of State Government Affairs for the Accountants' Coalition, also attributes our success to the fact that we presented this bill to the legislators as a small firm issue.

HB 86 would allow non-CPA ownership of CPA firms as long as the CPA maintains a simple majority of the ownership and the non-CPA is active in the firm. This would allow small firms in Maryland the same ownership benefits large firms have enjoyed for many years through complex legal structures.

Certified public accountants — Waiver of examination requirements (SB 640)

Maryland firms will be able to recruit CPAs from other states more easily.

Sen. Sfikas introduced this bill at the request of one of his constituents to make it easier for out-of-state licensed CPAs to obtain a license in Maryland. MACPA met with Sen. Sfikas' office and worked closely with the DLLR to amend this bill to be consistent with the "4-in-10 provisions" of the Uniform Accountancy Act. Under this bill, CPAs who are licensed in another state can obtain a reciprocal license in Maryland if after passing the exam they have obtained four years of practical work experience within the most recent 10 years.

Nick Manis and Carol Kirwan testified on behalf of MACPA in support of the amended bill in the Senate Economic and Environmental Affairs Committee on March 2. Alicia Foster, as chair of the Board of Accountancy; Mark Feinroth, commissioner; and Harry Loleas, deputy commissioner, also were on hand to support this bill on behalf of the DLLR. As a result of the cooperative efforts, the bill as amended sailed through the Senate and was approved by the Economic Matters Committee in the House of Delegates.

Penalties and Disciplinary Grounds (HB 88)

The Board of Accountancy will be able to take action against unauthorized practice.

The bill allowing licensing boards to impose civil penalties for violations passed unanimously in the House of Delegates. Dawson Grove and Alicia Foster were present in the committee hearing in January on this bill. MACPA members expressed their support for this bill as a means of taking action against unlicensed accountants who perform services reserved only for licensed CPAs. Carol Kirwan and Nick Manis were present at the hearing in the Senate Economic and Environmental Affairs Committee on March 20, on behalf of MACPA. The Senate passed the bill on March 30, with amendments.

Creation of fund and regulation of fee (SB 681)

Licensees may see improvements in service from the Board of Accountancy.

The Department of Labor, Licensing and Regulation introduced a bill which would create a fund and regulate fees for the Occupational and Professional Licensing Boards and Commissions of Maryland (SB 681). Carol Kirwan testified on behalf of MACPA in support of this bill on March 8 in the Senate Economic and Environmental Affairs Committee. Alicia Foster, as chair of the Board of Accountancy; Mark Feinroth, commissioner; Harry Loleas, deputy commissioner; and Dennis Gring, executive director of the Board of Accountancy, also were on hand to support this bill on behalf of the DLLR.

MACPA supported this bill because we believe it is logical to allocate the direct and indirect costs of operations to each of the state boards and to set the fees they collect based on those costs. We are convinced this is a sound policy that will enable boards to act responsibly. It is our opinion that all licensees will benefit from the ability of the boards to tie the costs of running the boards to the fees that they charge. It was also important for MACPA to show our support for the DLLR.

The Senate approved the bill and it will go before the House Economic Matters Committee. Carter Heim and Carol Kirwan met with Del. Michael Gordon, vice chair of the committee, at the request of Mark Feinroth, assistant secretary of the DLLR. Del. Gordon is opposed to the bill because he sees it as an unnecessary increase in taxes. (Note: The fees for CPAs are projected to increase to $45 every two years.)

Sales and use tax — Services (HB 1337)

Maryland business clients shun a new sales tax on professional services.

MACPA also wrote a letter to the House Ways and Means Committee in opposition to HB 1337, which would impose sales and use tax on services, including tax and consulting services. Carol Kirwan and Nick Manis testified on behalf of MACPA against HB 1337 at the hearing on this bill on March 20. The bill received an unfavorable report in Committee on March 26.

This issue will continue to be introduced and gain momentum as House Leadership looks for ways to increase revenues because of the shortfalls predicted in the out years. Our position was simply that this bill would increase the cost of doing business in Maryland.

This content has not yet been Rated.

To Rate content, please Login.