2006 Kansas Code - 1-308

      1-308.   Entities authorized to practice; annual registration; fee; partner, shareholder and member requirements; designation of responsible permit holder; firm name; notification of board upon changes. (a) Notwithstanding any other provision of Kansas law, any individual who operates as a sole practitioner and who issues reports subject to peer review, any general partnership, limited liability partnership, general corporation, professional corporation or limited liability company, hereafter referred to as a "firm" may be organized for the practice of certified public accountancy and may engage in the practice in this state if it registers annually with the board, it complies with requirements established by rules and regulations adopted by the board for such registration, and it meets the following requirements:

      (1)   At least one general partner, shareholder or member thereof must be a certified public accountant of this state holding a valid permit to practice;

      (2)   each partner, shareholder or member who is a certified public accountant thereof personally engaged within this state in a practice of certified public accounting must be a certified public accountant of this state holding a valid permit to practice;

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

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

      (5)   at least a simple majority of the ownership of the firm, in the terms of equity capital and voting rights of all partners, shareholders and/or members, belongs to the holders of valid licenses to practice as certified public accountants in some state. All nonlicensee owners must be of good moral character and must be natural persons actively participating in the business of the firm or entities, such as partnerships, corporations or other business associations, that are affiliated with the firm, provided that each ultimate beneficial owner of an equity interest in such an affiliated entity shall be a natural person actively participating in the business of the firm or affiliated entity. Although firms may include nonlicensee owners, the firm and its ownership must comply with rules and regulations promulgated by the board. Any firm which is denied registration pursuant to this section shall be entitled to notice and an opportunity to be heard pursuant to the Kansas administrative procedures act.

      (b)   Nothing in this section shall prohibit a professional corporation from practicing in partnership with one or more corporations or individuals and being registered with the board as a partnership under this section.

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

      (d)   The firm shall designate a permit holder of this state who is responsible for the proper registration of the firm and shall identify that individual to the board by affidavit of a general partner, manager or officer of the firm. A fee may be charged for the registration of a firm.

      (e)   A firm which is so registered in accordance with this section may use the words "certified public accountants" or the abbreviation "C.P.A." in connection with its name. Notification shall be given the board, within one month, after the admission or withdrawal of a partner, shareholder or member from any firm so registered. Firms which fall out of compliance with the provisions of this section due to changes in firm ownership or personnel shall take corrective action to bring the firm back into compliance as quickly as possible. The board may grant a reasonable period of time for a firm to take such corrective action. Failure to bring the firm back into compliance within a reasonable period as determined by the board will result in the suspension or revocation of the firm permit. A firm that does not do business in Kansas shall register with the board prior to the date the firm opens a Kansas office.

      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; July 1.