The amendment cleaned up and modernized the bill's definitions section by removing outdated references to "prior law" and "corresponding provisions," simplifying language (such as changing "undertaking to express" to "does not express"), and renumbering definition subsections for clarity—these are technical refinements that NARROW the bill's scope to focus solely on current licensing provisions rather than maintaining compatibility with historical predecessor statutes.
26.365.24 26.365.25 101st Legislative Session 1035 2026 South Dakota Legislature House Bill 1035 Introduced by: Representative Weisgram Underscores indicate new language. Overstrikes indicate deleted language. ENROLLED AN ACT ENTITLED An Act to modify provisions related to the licensure of public accountants. 1 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 2 Section 1. That § 36-20B-1 be AMENDED: 3 36-20B-1. Terms as used in this chapter mean: 4 (1) "Board," the South Dakota Board of Accountancy established pursuant to this 5 chapter or its predecessor; 6 Accountancy; (2) "Certificate," a certificate as a certified public accountant certificate issued 7 pursuant to this chapter or corresponding provisions of prior law, or a 8 corresponding certificate as certified public accountant certificate issued, after 9 examination, under the law of any other state; 10 (3) "Client," a person or entity that agrees with a licensee to receive any a professional 11 service, other than an employer-employee relationship; 12 (4) "CPA firm" and "PA firm," a sole proprietorship, a corporation, a partnership, or 13 any other form of organization permitted by law, issued a permit under this 14 chapter; 15 (5) "Compilation," providing a service to be performed in accordance with Statements 16 on Standards for Accounting and Review Services (SSARS) that is presenting, 17 Services, which presents in the form of financial statements, statements and information that is the 18 representation of management (owners) without undertaking to and does not 19 express any assurance on the statements; 20 (6) "Domestic," referring to a jurisdiction of a state; 21 (7) "Foreign," referring to a jurisdiction outside of the United States; 22 (8) "Home office," the location specified by a client as the address to which a service 23 is directed; 24 26.365.24 2 1035 Underscores indicate new language. Overstrikes indicate deleted language. (9) "License," a certificate issued pursuant to this chapter, a permit issued pursuant 1 to this chapter, or a registration pursuant to this chapter; or in each case, a 2 certificate, license, or permit issued under corresponding provisions of prior law; 3 (10) "Licensee," the holder of a certificate or a permit issued pursuant to this chapter 4 or of a license issued under prior law, or of a permit issued pursuant to this chapter; 5 or in each case, a certificate, license, or permit issued under corresponding 6 provisions of prior law; 7 (11) "Manager," a manager of a limited liability company; 8 (12) "Member," a member of a limited liability company; 9 (12A)(13) 26.365.25 2 1035 HB1035 ENROLLED (13) "Owner," a licensee or nonlicensee as a proprietor, partner, officer, 10 shareholder, or member with financial rights in the a CPA firm or PA firm; 11 (13)(14) (14) "Peer review," a study, appraisal, or review of one or more aspects of the 12 professional work of a certificate holder or CPA firm that, firm, which performs attest or 13 compilation services, by a qualified person or persons, who hold certificates, and 14 who are not affiliated with the certificate holder or CPA firm being reviewed; 15 (14)(15) (15) "Permit," a permit to practice public accountancy issued to a firm pursuant to 16 this chapter or corresponding provisions of prior law or under corresponding 17 provisions of the laws of other states; 18 (15)(16) (16) "Practice privilege," the privilege for a person to practice public accountancy; 19 (16)(17) (17) "Principal place of business," the office location designated by the a licensee for 20 purposes of substantial equivalency and reciprocity the purpose of practice 21 privilege; 22 (17)(18) (18) "Professional," arising out of, or related to, the specialized knowledge or skills 23 associated with CPAs or Pas certified public accountants or public accountants; 24 (18)(19) (19) "Public accountant," a person holding who holds a public accountant license 25 issued pursuant to provisions of prior law; and 26 (19)(20) (20) "State," any state of the United States, the District of Columbia, Puerto Rico, 27 the U.S. Virgin Islands, Guam, and the Commonwealth of the Northern Mariana 28 Islands; 29 (20) "Substantial equivalency," a determination by the board or its designee that the 30 education, examination, and experience requirements contained in the statutes 31 and administrative rules of another jurisdiction are comparable to, or exceed the 32 education, examination, and experience requirements contained in this chapter or 33 that an individual CPA's education, examination, and experience qualifications are 34 comparable to or exceed the education, examination, and experience requirements 35 26.365.24 3 1035 Underscores indicate new language. Overstrikes indicate deleted language. contained in this chapter. In ascertaining substantial equivalency, the board or its 1 designee shall take into account the qualifications without regard to the sequence 2 in which experience, education, or examination requirements were attained. 3 Islands. Section 2. That § 36-20B-12 be AMENDED: 4 36-20B-12. The board may shall promulgate rules, in accordance with chapter 1-5 26, 1-26, governing the board's administration and enforcement of this chapter and the conduct 6 of licensees in the following matters: 7 (1) Rules governing the board's meetings, and the conduct of the board's business; 8 (2) Rules of procedure governing the conduct of investigations and hearings by the 9 board; 10 (3) Rules specifying the fees for firm permits and certificates, educational and 11 experience qualifications required for the issuance of certificates, the date for 12 renewal of firm permits and certificates, and the continuing professional education 13 required for renewal of certificates. The fee for issuance or renewal of a certificate 14 may not exceed one hundred dollars; 15 (4) Rules of professional conduct to control the quality and integrity of the practice of 16 public accountancy by licensees, covering the following areas: 17 (a) Independence, integrity, and objectivity; 18 (b) Competence and technical and professional standards; 19 26.365.25 3 1035 HB1035 ENROLLED (c) Responsibilities to the public; and 20 (d) Responsibilities to clients; 21 (5) Rules governing the manner and circumstances of use of the titles certified public 22 accountant and CPA by holders of certificates who do not practice public 23 accountancy, as provided for in this chapter; 24 (6) Rules specifying procedures and fees, not to exceed one hundred dollars, for the 25 registration of certificate holders who do not practice public accountancy, as 26 provided for in this chapter; 27 (7) Rules governing the manner and circumstances of use of the titles public 28 accountant and PA by holders of licenses issued under prior law who do not practice 29 public accountancy, as provided for in this chapter; 30 (8) Rules specifying procedures and fees, not to exceed one hundred dollars, for the 31 registration of license holders who do not practice public accountancy, as provided 32 for in this chapter; 33 (9) Rules regarding peer review pursuant to this chapter; 34 26.365.24 4 1035 Underscores indicate new language. Overstrikes indicate deleted language. (10) Rules specifying peer review administrative fees, not to exceed one hundred 1 twenty-five dollars, plus seventy-five dollars for a peer review form filed late; 2 (11) Rules specifying procedures and fees, not to exceed one hundred dollars, for 3 required peer review documentation filed late; 4 (12) Rules specifying fees for examination and reexamination, not to exceed four 5 hundred fifty dollars per section of the examination or reexamination, and issuance 6 of a certificate, not to exceed one hundred dollars; 7 (13) Rules specifying the procedures and fees, not to exceed one hundred dollars for 8 each owner, plus one hundred dollars for the a firm practicing public accountancy 9 in this state, for initial issuance or renewal of a firm permit. Any fee promulgated 10 by rule pursuant to this subdivision may be a flat fee or tier based; 11 (14) Rules governing the application and fees for: 12 (a) A modification of a disciplinary action, not to exceed one thousand dollars; 13 (b) A reissue of a certificate, not to exceed one hundred dollars; and 14 (c) A firm permit, not to exceed one hundred dollars for each owner, plus one 15 hundred dollars for the a firm practicing public accountancy in this state. 16 Any fee promulgated by rule pursuant to this subdivision may be a flat fee or tier 17 based; 18 (15) (14) Rules governing the methods, eligibility, and requirements for applying for 19 examination and reexamination; 20 (16) Rules specifying procedures application and fees for the late renewal for: (a) A modification of certificates, a disciplinary action, not to 21 exceed one thousand dollars; (b) A reissue of a certificate, not to exceed one hundred dollars, dollars; and (c) A firm permits, permit, not to exceed one hundred dollars 22 for each owner, plus one hundred dollars for the a firm practicing public 23 accountancy in this state. Any fee promulgated by rule pursuant to this subdivision 24 may be either a flat fee or tier based; 25 (17) Rules specifying procedures and fees, not to exceed fifty dollars, for replacement 26 of a certificate or permit; 27 (18) Rules specifying methods and requirements for conducting the examination; 28 (19) Rules specifying methods, eligibility, and requirements of applying for a certificate; 29 (20) Rules specifying procedures and fees for the: 30 (a) Late filing of a certificate based on substantial equivalency, not to exceed 31 one hundred dollars; 32 (b) Late issuance of certificates, not to exceed one hundred dollars; and 33 26.365.24 5 1035 Underscores indicate new language. Overstrikes indicate deleted language. (c)(b) Late filing of firm permits, not to exceed one hundred dollars for each 1 owner, plus one hundred dollars for the a firm practicing public accountancy 2 in this state. 3 Any fee promulgated by rule pursuant to this subdivision may be a flat fee or tier based; (15) Rules governing the methods, eligibility, and requirements for applying for examination and reexamination; 26.365.25 4 1035 HB1035 ENROLLED (16) Rules specifying procedures and fees for the late renewal of certificates, not to exceed one hundred dollars, and firm permits, not to exceed one hundred dollars for each owner, plus one hundred dollars for a firm practicing public accountancy in this state. Any fee promulgated by rule pursuant to this subdivision may be either a flat fee or tier based; (17) Rules specifying procedures and fees, not to exceed fifty dollars, for replacement of a certificate or permit; (18) Rules specifying methods and requirements for conducting the examination; (19) Rules specifying methods, eligibility, and requirements of applying for a certificate; (20) Rules specifying procedures and fees for the: (a) Late issuance of certificates, not to exceed one hundred dollars; and (b) Late filing of firm permits, not to exceed one hundred dollars for each owner, plus one hundred dollars for a firm practicing public accountancy in this state. Any fee promulgated by rule pursuant to this subdivision may be a flat fee or tier based; and 5 (21) Rules defining active and inactive status of both certificate and public accountant 6 license holders who are not practicing public accountancy; and 7 (22) Rules specifying procedures and fees, not to exceed one hundred dollars, on 8 substantial equivalency. 9 accountancy. Section 3. That § 36-20B-15 be AMENDED: 10 36-20B-15. The education requirement for a certificate, which shall be met before 11 one hundred days after an applicant sits for the examination prescribed in this chapter, is 12 at least one hundred fifty semester hours of college education, including graduation from 13 an accredited college or university with a baccalaureate or a graduate degree in 14 accounting, or the satisfactory completion of a course of study which the board has 15 determined to be substantially the equivalent of an accounting degree, including related 16 courses in other areas of business administration. Such courses of study may be in a 17 college or university, recognized by the board. 18 In order to sit for the examination described in § 36-20B-18, an individual must 19 provide documentation to the board that the individual has obtained, or is scheduled to 20 obtain within one hundred days after taking the examination, a bachelor's degree or a 21 graduate degree from an accredited institution of higher education. The individual's degree 22 program must include a concentration in accounting or an equivalent, as determined by 23 the board. 24 Section 4. That § 36-20B-21 be AMENDED: 25 36-20B-21. An applicant for initial issuance of a certificate under this chapter shall 26 show that the applicant has acquired one year of experience. 27 This experience shall include providingAn applicant for a certificate, who holds a 28 graduate degree that satisfies the requirements to sit for an examination, pursuant to 29 § 36-20B-15, shall provide to the board documentation that the applicant has completed 30 one year of experience in accounting. 31 26.365.24 6 1035 Underscores indicate new language. Overstrikes indicate deleted language. An applicant for a certificate, who holds a bachelor's graduate degree that satisfies the 1 requirements to sit for an examination, pursuant to § 36-20B-15, shall provide to the 2 board documentation that the applicant has completed one year of experience in accounting. An applicant for a certificate, who holds a bachelor's degree that satisfies the requirements to sit for an examination, pursuant to § 36-20B-15, shall provide to the board documentation that the applicant has completed: 3 26.365.25 5 1035 HB1035 ENROLLED (1) One year of experience in accounting and thirty semester credit hours of education, 4 in addition to the number of hours required to obtain the applicant's bachelor's 5 degree, at an accredited institution of higher education; or 6 (2) Two years of experience in accounting. 7 For the purposes of this section, experience in accounting includes any type of 8 service or advice involving the use of accounting, attest, management advisory, financial 9 advisory, tax, or consulting skills, all of which were verified by a licensee, meeting licensee and 10 meet requirements prescribed by the board, by rule promulgated pursuant to chapter 1-11 26. 1-26. Acceptable experience may be gained completed through employment in government, 12 industry, academia, or public practice. 13 Any person holding who holds a valid certificate issued by this state prior to July 14 1, 2002, is deemed to have met the requirements of this section. 15 Section 5. That § 36-20B-22 be AMENDED: 16 36-20B-22. An individual who passes the examination as a South Dakota 17 candidate, examination, and who satisfies the requirements set forth in § 36-20B-21, may apply for a 18 certificate in accordance with requirements and by such date established by rule, the 19 board, in rule promulgated pursuant to chapter 1-26. The board shall grant or renew a 20 certificate to any person who makes application and demonstrates qualifications that are 21 in accordance with the provisions of this chapter or eligibility under the substantial 22 equivalency standard provided in this chapter. 23 Section 6. That § 36-20B-25 be AMENDED: 24 36-20B-25. The board shall must issue a certificate to an applicant who does not 25 qualify for reciprocity under the substantial equivalency standard provided in this chapter 26 but who holds a certificate, license, or permit issued by another state upon a showing, state, if 27 the applicant provides documentation that: 28 (1) The applicant has passed the examination required for issuance of the applicant's 29 certificate certification in the applicant's state, with grades that would have been 30 passing grades at the time in this state; 31 (2) The applicant had has at least four years of experience of the type described in this 32 chapter, or the applicant meets equivalent requirements prescribed by the board, 33 26.365.24 7 1035 Underscores indicate new language. Overstrikes indicate deleted language. by rule promulgated pursuant to chapter 1-26, after passing the examination, upon 1 which the applicant's certificate was based, and within the ten years immediately 2 preceding the application; and 3 (3) The applicant has fulfilled the requirements of continuing professional education 4 that would have been applicable under subdivision (2), if the applicant's certificate, 5 26.365.25 6 1035 HB1035 ENROLLED license, or permit was issued more than four years prior to the submitting an 6 application for issuance of an initial certificate under this chapter. 7 Section 7. That § 36-20B-26 be AMENDED: 8 36-20B-26. Before establishing a principal place of business in this state, a 9 certificate holder a person who is licensed by another state shall request the issuance of 10 must request a certificate from the board. The board shall issue a certificate to any 11 applicant who obtains, from the board of the other state, verification that such applicant's 12 qualifications are substantially equivalent that the applicant's qualifications are 13 comparable to the CPA licensure requirements of this chapter, as determined by the board. 14 Section 8. That § 36-20B-30 be AMENDED: 15 36-20B-30. The board shall must issue a certificate to a holder of a substantially 16 equivalent a foreign designation that the board determines to be comparable to a 17 certificate issued by this state, if the following conditions are satisfied: 18 if: (1) The foreign authority which that granted the designation makes similar provision 19 to allow a person who holds a valid certificate issued by this state to obtain such 20 the foreign authority's comparable designation; 21 (2) The foreign designation was duly issued by a foreign authority that regulates the 22 practice of public accountancy, based on educational and examination 23 requirements established by the foreign authority, or by statute, and the foreign 24 designation has not expired or been revoked or suspended; 25 (3) The applicant received the designation, based on educational and examination 26 standards substantially equivalent that the board determines to be comparable to 27 those in effect in this state, at the time the foreign designation was granted, and 28 the designation was issued upon the basis of educational, examination, and 29 experience requirements established by the foreign authority or by law; 30 (4) The applicant has passed a qualifying examination, with the examination grading 31 and passing grades being which uses a grading system that is uniform with those 32 26.365.24 8 1035 Underscores indicate new language. Overstrikes indicate deleted language. applicable in other states, and an examination acceptable to approved by the 1 board, on the law, rules, and code of ethical conduct in effect in this state; and 2 (5) The applicant received the designation based on educational and examination 3 standards substantially equivalent that the board determines to be comparable to 4 those in effect in this state at the time the foreign designation was 5 granted;completed 6 granted; (6) The applicant has: 7 (a) Completed an experience requirement substantially equivalent that the 8 board determines to be comparable to the requirement provided in this 9 chapter, in the jurisdiction which that granted the foreign designation or 10 has completed; 11 designation; 26.365.25 7 1035 HB1035 ENROLLED (b) Completed four years of professional experience in this state; or meets 12 (c) Met equivalent requirements prescribed by the board, by rule promulgated 13 pursuant to chapter 1-26, within the ten years immediately preceding the 14 application; and 15 (7) The applicant passed a uniform qualifying examination consistent with national 16 standards, and an examination on the laws, rules, and code of ethical conduct in 17 effect in this state. 18 An applicant under this section shall list in the application all jurisdictions, foreign 19 and domestic, jurisdictions in which the applicant has applied for, or holds, a designation to practice 20 public accountancy, and each. accountancy. Each holder of a certificate issued under this section shall 21 notify the board in writing, within thirty days after its occurrence, of any issuance, denial, 22 revocation, or suspension of a designation, or commencement of a disciplinary or 23 enforcement action by any jurisdiction. The board has the sole authority to interpret the 24 application of the provisions of this section. 25 Section 9. That § 36-20B-66 be AMENDED: 26 36-20B-66. An individual whose principal place of business is not in this state and 27 who holds a valid certificate or license as a certified public accountant from any state 28 which the board has verified to be in substantial equivalence with the CPA licensure 29 requirements of this chapter is presumed to have qualifications substantially equivalent to 30 requirements of this state and shall have, state, has all the privileges of certificate holders and 31 licensees of a licensee under this chapter, without the need to obtain a certificate or permit 32 under this chapter, provided that the individual has passed the uniform certified public 33 accountant examination, and has obtained: 34 26.365.24 9 1035 Underscores indicate new language. Overstrikes indicate deleted language. (1) A bachelor's degree in accounting, or in a course of study that the board has 1 determined to be comparable to an accounting degree, and has completed: 2 (a) Two years of experience in accountancy, as described in § 36-20B-21; or 3 (b) One year of experience in accountancy, as described in § 36-20B-21, and 4 thirty semester credit hours at an accredited institution of higher education, 5 in addition to the number of hours required to obtain the applicant's 6 bachelor's degree; or 7 (2) A graduate degree in accounting, or in a course of study which the board has 8 determined to be comparable to an accounting degree, and completed at least one 9 year of experience in accountancy, as described in § 36-20B-21. 10 Notwithstanding any other provision of law, an individual who offers or renders 11 professional services under this section, whether in person, or by mail, telephone, or 12 electronic means, shall must be granted practice privileges in this state, and no notice, 13 fee, or other submission is required of the individual. However, theThe individual shall be 14 is subject to the requirements of § 36-20B-68. 15 Section 10. That § 36-20B-67 be AMENDED: 16 36-20B-67. Any individual whose principal place of business is not in this state 17 who holds a valid certificate or license as a certified public accountant from any state 18 which the board has not verified to be in substantial equivalence with the CPA licensure 19 requirements of this chapter is presumed to have qualifications substantially equivalent to 20 this state's requirements and shall have all the privileges of certificate holders and 21 licensees of this state without the need to obtain a certificate or permit under this chapter 22 if the CPA qualifications of the individual are substantially equivalent to the CPA licensure 23 requirements of this chapter. 24 Notwithstanding any other provision of law, an individual who offers or renders 25 professional services, whether in person, or by mail, telephone, or electronic means, under 26 this section shall be granted practice privileges in this state, and no notice, fee, or other 27 submission is required of the individual. However, the The individual shall be is subject to the 28 requirements of § 36-20B-68 29 36-20B-68. 26.365.25 8 1035 HB1035 ENROLLED Section 10. That § 36-20B-67 be AMENDED: 36-20B-67. An individual shall continue to hold practice privileges, without needing to obtain a 30 license under this chapter, if the individual: 31 (1) Has a principal place of business that is not in this state; 32 (2) Holds a valid certificate or license as a certified public accountant from any state; 33 and 34 26.365.24 10 1035 Underscores indicate new language. Overstrikes indicate deleted language. (3) On or before December 31, 2024, exercised practice privileges in this state under 1 § 36-20B-66, as it existed on December 31, 2024. 2 26.365.25 9 1035 HB1035 ENROLLED An Act to modify provisions related to the licensure of public accountants. I certify that the attached Act originated in the: House as Bill No. 1035 Chief Clerk of the House Speaker of the House Attest: Chief Clerk of the House President of the Senate Attest: Secretary of the Senate House Bill No. 1035 File No. ____ Chapter No. ______ Received at this Executive Office this _____ day of _____________, 2026 at ____________M. By for the Governor The attached Act is hereby approved this ________ day of ______________, A.D., 2026 Governor STATE OF SOUTH DAKOTA, ss. Office of the Secretary of State Filed ____________, 2026 at _________ o'clock __M. Secretary of State By Asst. Secretary of State