193A—5.1 (542) Licensure status and practice privilege.
	 5.1(1) Licenses issued by the board pursuant to Iowa Code section 542.6, 542.8, or 542.19 may be in active, inactive, or lapsed status, as follows:
	  a.   	 An initial license is issued in active status with an expiration date. Maintaining active status requires periodic renewal as provided in rules 193A—5.2(542) and 5.3(542). Renewal in active status requires satisfaction of continuing education as provided in 193A—Chapter 10.
	  b.   	 A license may be renewed in inactive status as provided in rule 193A—5.9(272C,542) if the licensee does not satisfy the continuing education required for renewal in active status. A renewal license issued in inactive status shall lapse if not timely renewed pursuant to rule 193A—5.2(542) or 5.3(542). An inactive license may be reinstated to active status at any time pursuant to subrule 5.9(7).
	  c.   	 An active or inactive license that is not timely renewed shall be in lapsed status. A lapsed license may be reinstated to active or inactive status at any time pursuant to subrule 5.6(3).
	 5.1(2) An individual holding an active license is authorized to use the title “CPA” or “LPA,” as applicable, in the individual's practice of public accounting in Iowa or for a client with a home office in Iowa.
	 5.1(3) An individual holding an inactive or lapsed license is not authorized to practice public accounting in Iowa or for a client with a home office in Iowa using the title “CPA” or “LPA.”
	 5.1(4) Practicing public accounting in Iowa or for a client with a home office in Iowa while holding an inactive or lapsed license is a ground for discipline under Iowa Code section 542.10 and may also or alternatively provide grounds for the regulatory actions described in Iowa Code section 542.14.
	 5.1(5) Out-of-state individuals holding an inactive or lapsed Iowa CPA certificate and out-of-state individuals to whom an Iowa CPA certificate has never been issued under Iowa Code chapter 542 or prior law may exercise a practice privilege under Iowa Code section 542.20 if they hold an active CPA certificate in the jurisdiction in which they maintain their principal place of business and otherwise satisfy all of the conditions described in Iowa Code section 542.20 and 193A—Chapter 20.
	 5.1(6) Exercising a practice privilege in Iowa or for a client with a home office in Iowa while holding an inactive or lapsed Iowa CPA certificate places a special burden on the individual to ensure that the public is informed about the individual’s licensure status in Iowa and in the jurisdiction of active licensure, as provided in 193A—paragraphs 20.8(2)“b” and 20.8(3)“b.” As a practical matter, an individual’s failure to clarify licensure status in Iowa and in the jurisdiction of the individual’s principal place of business may confuse the public. There is no comprehensive national data bank that the public may consult to verify an individual’s licensure in another jurisdiction, and a client contacting the board or consulting the board’s Web site will be informed that the individual is not actively licensed in Iowa. The board will have no record of an individual’s exercise or purported exercise of a practice privilege.
[ARC 7715B, IAB 4/22/09, effective 7/1/09]