1-308.   Firms authorized to practice; annualregistration; fee; partner, shareholder and member requirements; designation ofresponsible permit holder; firm name; notification of board uponchanges; mandatory registration; prohibitions.(a) Unless exemptfrom registration pursuant to this section, a firm may engage in thepractice of certified public accountancy in this state only ifthe firm registers with the board, complieswith requirements established by rules and regulations adopted by the board forsuch registration, and meets the following requirements:

      (1)   At least one general partner, shareholder or member thereof mustbe a certified public accountantholding a valid permit to practicefrom this state or a practice privilege undersubsection (a) of K.S.A. 1-322, and amendments thereto;

      (2)   each partner, shareholder or member who is a certified public accountantand whose principal place of business is in this state andwho is personally engaged within this state in a practice of certifiedpublic accounting must be a certified public accountant of this state holding avalid permit to practice;

      (3)   each partner, shareholder or member who is a certified publicaccountant thereof must be a certified public accountant in somestate in good standing;

      (4)   each resident manager in charge of an office of thefirm in this state must be a certified public accountant of this stateholding a valid permit to practice; and

      (5)   at least a simple majority of the ownership of the firm, in the terms ofequity capital and voting rights of all partners, shareholdersor members, belongs to theholders of valid licenses to practice as certified public accountants in somestate. All nonlicensee owners must be of good moral character and must benatural persons actively participating in the business of the firm oractively participating in the business of entities, such aspartnerships, corporations or other business associations, thatare affiliated with the firm.Although firms may include nonlicensee ownersthere shall be at least one certified public accountant who has ultimateresponsibility for all the services provided by the firm and,the firm and itsownership must comply with rules and regulations promulgated by the board. Anyfirm which is denied registration pursuant to this section shall be entitled tonotice and an opportunity to be heard pursuant to the Kansas administrativeprocedures act.

      (b)   Notwithstanding any other provision of Kansas law, the following mustbe registered by the board:

      (1)   Any firm with an office in this state which practices certified publicaccountancy;

      (2)   any firm that does not have an office in this state but performs oroffers to perform attest services described in subsection (d) of K.S.A. 1-321,and amendments thereto, for a client having its home office in this state;

      (c)   A firm which is not subject to subsection (b)may perform or offer to perform services described insubsection (s) of K.S.A. 1-321, and amendments thereto, and may use the"certified public accountant," "CPA" or "CPA firm" without registering with theboard only if:

      (1)   The individuals performing such services on behalf of the firm have thequalifications described in subsections (b) and (c) of K.S.A. 1-302b, andamendments thereto;

      (2)   it performs such services through an individual with practice privilegesunder K.S.A. 1-322, and amendments thereto; and

      (3)   it can lawfully perform such services in the state where such individualswith practice privileges have their principal place of business.

      (d)   An individual who has practice privileges under subsection (a) of K.S.A.1-322, and amendments thereto, who performs or offers to perform services forwhich a firm registration is required under this section shall not be requiredto obtain a certificate or permit under K.S.A. 1-310, and amendments thereto.

      (e)   A professionalcorporation in partnership with one or more corporationsor individuals shall not be registered with the boardas a partnership unless such a partnership wasregistered prior to January 1, 2007.

      (f)   The term "resident" as used in this section, shallinclude a person engaged in practice as a certified public accountant in thisstate, who spends all or the greater part of such person's time duringbusiness hours in this state, but who resides in another state.

      (g)   Each firm required to register under thissection shall register prior to engaging in thepractice of certified public accountancy in this state and shall renew thefirm's registration by December 31 of each year. Eachfirm shall designate a permit holder of this state, or in the case of a firmwhich must register pursuant to paragraph (2) of subsection (b)a licensee of another state who meets the requirements set out insubsection (a) of K.S.A. 1-322, and amendments thereto,who is responsible for theproper registration of the firm and shall identify that individual to the boardby affidavit of a general partner, manager or officer of the firm. A fee may bechargedfor theregistration of a firm.

      (h)   A firm that is not registered in accordancewith this section or not exempt from registration under subsection (c)shall not use the words "certifiedpublic accountants" or the abbreviationCPA in connection with its name. Notification shall begiven the board, within one month, after the admission or withdrawal of apartner, shareholder or member from any registeredfirm.Firms which fall out of compliance with the provisions of this section dueto changes in firm ownership or personnel shall take corrective action to bringthe firm back into compliance as quickly as possible. The board may grant areasonable period of time for a firm to take such corrective action. Failure tobring the firm back into compliance within a reasonable period as determined bythe board will result in the suspension or revocation of the firm permit.

      (i)   Any firm prohibited from practicing certified public accountancy inthis state, as a result of having a firm registration revoked or suspended bythe board, shall not practice under subsection (c) without first obtaining theapproval of the board.

      History:   L. 1951, ch. 1, § 12;L. 1981, ch. 3, § 1;L. 1987, ch. 2, § 4;L. 1995, ch. 152, § 4;L. 2000, ch. 81, § 11;L. 2007, ch. 97, § 3;L. 2009, ch. 38, § 6; Apr. 2.