Bill
HB 7839
HB 7839 modernizes RI public accountancy by creating a state board, updating licensure and mobility rules, tightening permits and firm ownership, and aligning with national standar
HB 7839 (Rhode Island, 2026) – Public Accountancy
Purpose and scope
- Establishes and reforms Rhode Island’s public accountancy framework, creating a Rhode Island Board of Accountancy and updating licensure, permits, mobility privileges, and enforcement mechanisms to align with the Uniform Accountancy Act and related national standards.
- Aims to clarify definitions, licensure pathways, mobility rights (reciprocity and individual mobility), and foreign- and domestic-entity qualifications for practice in the state.
- Replaces/updates numerous provisions in Chapter 5-3.1 (Public Accountancy).
Key provisions and changes
1) Definitions and standards (5-3.1-3)
- Defines core terms: active participant, attest, CPA, PA (public accountant), license, permit, practice unit, mobility privileges, substantial equivalency, peer review, and related concepts.
- Establishes that attest work includes SAS/SSARS/SSAE engagements, PCAOB engagements, and related standards.
- Clarifies mobility concepts: individual mobility privileges and substantial equivalency for reciprocity.
2) Board of Accountancy (5-3.1-4)
- Creates Rhode Island Board of Accountancy with five members: four CPAs/public practitioners and one public sector member.
- Tenure: five-year terms; prohibited dual practice with other board members; expulsion/removal provisions.
- Board duties: rulemaking, education/experience requirements, continuing education, peer reviews, and enforcement authority.
- Financial: board operates under a restricted receipt account; annual reporting on website.
- Rulemaking and enforcement powers broadened (including investigations, subpoenas, and authorization to hire staff/advisors).
3) Certification and licensure of CPAs (5-3.1-5)
- Licensure pathways must demonstrate good moral character and meet education/experience/campus requirements.
- Multiple pathways to eligibility:
- Post-baccalaureate degree plus CPA exam and one year of related experience.
- Baccalaureate degree plus 30 additional credits (accounting-related) plus CPA exam and one year of experience.
- Baccalaureate degree with 150 semester hours total education (including accounting concentration) and appropriate experience.
- Other combinations meeting board rule requirements.
- Reciprocal licensure/“substantial equivalency” considerations for out-of-state CPAs, with possible credit transfer, education/experience matching, and continuing education alignment.
- Out-of-state CPAs may be licensed via reciprocity if they meet current Rhode Island standards or through substantial equivalency.
4) Individual mobility practice privileges (5-3.1-5)
- Allows a CPA licensed in another state to provide services in Rhode Island without a RI license if meeting mobility criteria and maintaining good standing.
- Practicing individuals must comply with RI board rules and jurisdiction; firms employing mobility-privileged CPAs must recognize RI board authority and ensure compliance if privilege is used.
5) Permits for CPAs and PAs (5-3.1-7)
- Permits issued for three-year cycles; fees and continuing education requirements set by board.
- Renewal process by a statutory deadline; firm/office updates must be disclosed.
- Reciprocity and substantial equivalency pathways tie into permit issuance.
6) Foreign-country designation permits (5-3.1-8)
- Annual limited permits for foreign-qualified CPAs; requires foreign credential to be substantially equivalent to RI standards (education/exam/experience).
- Allows practice limited to activities within the foreign country’s scope and requires proper supervision if practicing in RI.
- CE requirements and renewals apply; transparency about multi-jurisdictional designations.
7) Permits for practice units (5-3.1-9)
- Firms (corporations, partnerships, LLCs, etc.) that offer attest/ Compilation services or use “CPA/CPA Firm” titles must hold RI permits.
- Non-subject firm exceptions exist under mobility rules if the individual practitioner uses mobility privileges.
- Requirements include ownership structure (majority ownership held by RI-licensed CPAs/PAs) and office registration.
8) Hearing, discipline, and reinstatement (Sections 5-3.1-11, 5-3.1-12, 5-3.1-15)
- Establishes hearing rights for license/permit denials, suspensions, or renewals.
- Grounds for discipline include fraud, dishonesty, violations of the Act or rules, criminal conduct, or other discreditable acts.
- Board to report disciplinary actions to other states and/or NASBA-enabled networks; enforcement costs recoverable from licensees.
9) Provisions on unlawful practice (5-3.1-16)
- Prohibits use of CPA/PA titles without proper permits or mobility privileges.
- Allows “accountant” or “auditor” label in certain contexts; restricts misleading titles and requires correct designation.
Impact and who is affected
Timeline and process notes
In sum, HB 7839 modernizes Rhode Island’s public accountancy framework, expands mobility and reciprocity, tightens firm ownership and governance rules, strengthens disciplinary processes, and aligns with national standards to protect the public interest.
Compiled from official sources — confirm details with the bill’s official record.
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