Bill Text: FL H0413 | 2011 | Regular Session | Introduced

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Bill Title: Public Accountancy

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2011-05-07 - Indefinitely postponed and withdrawn from consideration [H0413 Detail]

Download: Florida-2011-H0413-Introduced.html

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HB 413

1	A bill to be entitled
2	An act relating to public accountancy; creating s.
3	473.3066, F.S.; authorizing the Board of Accountancy to
4	establish a peer review oversight committee; providing for
5	membership and duties of the oversight committee;
6	requiring the board to adopt rules under certain
7	circumstances; amending s. 473.311, F.S.; revising
8	licensure renewal requirements for firms engaged in
9	certain aspects of the practice of public accounting;
10	requiring such firms to comply with certain peer review
11	requirements; providing an exception; creating s.
12	473.3125, F.S.; defining terms for purposes of peer review
13	requirements; requiring firms engaged in certain aspects
14	of the practice of public accounting to enroll in peer
15	review programs and undergo peer reviews; providing for
16	the frequency of peer reviews; providing exceptions;
17	requiring firms that fail a specified number of peer
18	reviews to submit certain documentation to the board;
19	requiring the board to establish minimum standards for
20	peer review programs; providing for the approval of peer
21	review administering organizations; requiring peer review
22	administering organizations to submit certain information
23	to the board; authorizing the board to withdraw approval
24	of peer review administering organizations under certain
25	circumstances; requiring the board to adopt rules;
26	limiting the liability of certain persons relating to the
27	performance of certain services and duties of peer review
28	administering organizations; providing that the
29	proceedings, records, and workpapers of peer review
30	administering organizations are confidential and
31	privileged; providing exceptions; prohibiting persons
32	involved in peer reviews from testifying; amending s.
33	473.323, F.S.; providing additional grounds for the
34	discipline of firms engaged in certain aspects of the
35	practice of public accounting, to which penalties apply;
36	revising requirements for reissuance of licenses after
37	compliance with disciplinary final orders; conforming
38	provisions; providing an effective date.
39
40	Be It Enacted by the Legislature of the State of Florida:
41
42	Section 1.  Section 473.3066, Florida Statutes, is created
43	to read:
44	473.3066  Peer review oversight committee.-
45	(1)  The board may establish a peer review oversight
46	committee to oversee the peer review requirements of s.
47	473.3125.
48	(2)  If the board establishes the peer review oversight
49	committee, the board shall adopt rules providing for the
50	qualifications, appointment, and terms of committee members as
51	follows:
52	(a)  The peer review oversight committee shall be composed
53	of five or fewer members appointed by the board.
54	(b)  Each committee member must hold a valid license as a
55	Florida certified public accountant.
56	(c)  Each committee member or his or her firm must have
57	undergone a peer review and received a review rating of "pass"
58	on the most recent peer review.
59	(d)  A committee member may not be a member of any state
60	accountancy board, be a member of another state accountancy
61	board committee, or perform any enforcement-related work for a
62	state accountancy board.
63	(e)  Committee members shall serve for terms not to exceed
64	3 years, except that the board, to establish staggered terms,
65	may appoint members to initial terms that are shorter than the
66	terms adopted by rule. The board shall fill the vacancy of a
67	committee member for the unexpired portion of the member's term
68	in the same manner as the original appointment.
69	(f)  Committee members shall serve without compensation and
70	are not entitled to reimbursement of per diem or travel
71	expenses.
72	(3)  The rules, if adopted, shall also provide for the
73	duties of the peer review oversight committee, which may
74	include, but are not limited to:
75	(a)  Providing oversight for peer review programs and peer
76	review administering organizations.
77	(b)  Periodically reporting to the board on the
78	effectiveness of peer review programs and providing a list of
79	licensees that participate in the programs.
80	(c)  Performing other duties relating to oversight of peer
81	review programs.
82	Section 2.  Section 473.311, Florida Statutes, is amended
83	to read:
84	473.311  Renewal of license.-
85	(1)  The department shall renew a license issued under s.
86	473.308 upon receipt of the renewal application and fee and upon
87	certification by the board that the Florida certified public
88	accountant has satisfactorily completed the continuing education
89	requirements of s. 473.312.
90	(2)  Effective January 1, 2015, the department shall renew
91	a license issued under s. 473.3101 upon certification by the
92	board that the sole proprietor, partnership, corporation,
93	limited liability company, or other firm engaged in the practice
94	of public accounting as defined in s. 473.302(8)(a) has
95	satisfactorily complied with the peer review requirements of s.
96	473.3125 or that the board has extended the time to comply with
97	the peer review requirements.
98	(3)(2)  The department shall adopt rules establishing a
99	procedure for the biennial renewal of licenses issued under ss.
100	473.308 and 473.3101.
101	Section 3.  Section 473.3125, Florida Statutes, is created
102	to read:
103	473.3125  Peer review.-
104	(1)  As used in this section, the term:
105	(a)  "Licensee" means a sole proprietor, partnership,
106	corporation, limited liability company, or any other firm
107	engaged in the practice of public accounting as defined in s.
108	473.302(8)(a) which is required to be licensed under s.
109	473.3101.
110	(b)  "Peer review" means the study, appraisal, or review by
111	one or more independent certified public accountants of one or
112	more aspects of the professional work of a licensee.
113	(2)(a)  Except as otherwise provided in paragraph (b) or
114	paragraph (c), a licensee must:
115	1.  Enroll in the peer review program of a peer review
116	administering organization approved by the board; and
117	2.  Undergo a complete peer review at least once every 3
118	years, which is performed in the manner prescribed by this
119	section and rules adopted by the board under this section and
120	for which a peer review report is submitted to and accepted by
121	the peer review administering organization.
122	(b)  A licensee is not required to enroll in a peer review
123	program or undergo a peer review if the licensee does not engage
124	in the practice of public accounting as defined in s.
125	473.302(8)(a).
126	(c)  A licensee that is licensed for less than 18 months
127	must enroll in a peer review program but is not required to
128	undergo a peer review.
129	(d)  A licensee that receives a review rating of "fail" on
130	two consecutive peer reviews must submit to the board any
131	documentation requested by the board relating to the peer
132	reviews for which the licensee received a review rating of
133	"fail."
134	(3)(a)  The board shall adopt rules establishing minimum
135	standards for peer review programs, including, but not limited
136	to, standards for administering, performing, and reporting peer
137	reviews. The board shall also adopt rules establishing minimum
138	criteria for the board's approval of one or more peer review
139	administering organizations to facilitate and administer peer
140	review programs.
141	(b)  The rules shall require a peer review administering
142	organization to submit to the board a written summary of the
143	organization's peer review program, including a description of
144	its entire peer review process; the organization's standards for
145	administering, performing, and reporting peer reviews; oversight
146	procedures; training requirements; and support materials.
147	(c)  The board may approve a peer review administering
148	organization, if:
149	1.  The organization meets or exceeds the board's minimum
150	criteria for the approval of peer review administering
151	organizations.
152	2.  The organization's peer review program meets or exceeds
153	the board's minimum standards for peer review programs.
154	3.  The organization demonstrates the ability to administer
155	its peer review program in the manner described in its written
156	summary and to comply with the board's minimum standards for
157	peer review programs.
158	(d)  The board may withdraw its approval of a peer review
159	administering organization if the organization fails to comply
160	with this section or rules adopted by the board under this
161	section.
162	(4)  A certified public accountant or other person
163	appointed or authorized to perform administrative services for a
164	peer review administering organization is immune from civil
165	liability for furnishing information, data, reports, or records
166	to the peer review administering organization or for damages
167	resulting from any decision, opinion, action, or proceeding
168	rendered, entered, or acted upon by the peer review
169	administering organization which is undertaken or performed
170	within the scope or function of the duties of the peer review
171	administering organization.
172	(5)  The proceedings, records, and workpapers of a peer
173	review administering organization are privileged, confidential,
174	and not subject to discovery, subpoena, or other means of legal
175	process or to introduction into evidence in a civil action or
176	arbitration proceeding. A person who is involved in a peer
177	review may not testify in a civil action or arbitration
178	proceeding as to any matter produced, presented, disclosed, or
179	discussed during or in connection with the peer review or as to
180	any finding, recommendation, evaluation, opinion, or other
181	action of the peer review administering organization. Public
182	records and materials prepared for a particular engagement are
183	not privileged merely because they were presented or considered
184	as part of a peer review. This privilege does not apply to any
185	dispute between a peer review administering organization and the
186	licensee subject to a review arising from the performance of the
187	peer review.
188	Section 4.  Section 473.323, Florida Statutes, is amended
189	to read:
190	473.323  Disciplinary proceedings.-
191	(1)  The following acts constitute grounds for which The
192	disciplinary actions in subsection (3) may be taken against any
193	certified public accountant or firm that:
194	(a)  Violates Violation of any provision of s. 455.227(1)
195	or any other provision of this chapter.
196	(b)  Attempts Attempting to procure a license to practice
197	public accounting by bribery or fraudulent misrepresentations.
198	(c)  Has Having a license to practice public accounting
199	revoked, suspended, or otherwise acted against, including the
200	denial of licensure, by the licensing authority of another
201	state, territory, or country.
202	(d)  Is Being convicted or found guilty of, or enters
203	entering a plea of nolo contendere to, regardless of
204	adjudication, a crime in any jurisdiction which directly relates
205	to the practice of public accounting or the ability to practice
206	public accounting.
207	(e)  Makes Making or files filing a report or record that
208	the certified public accountant or firm knows to be false,
209	willfully fails failing to file a report or record required by
210	state or federal law, willfully impedes impeding or obstructs
211	obstructing such filing, or induces inducing another person to
212	impede or obstruct such filing. Such reports or records include
213	only those that are signed in the capacity of a certified public
214	accountant.
215	(f)  Advertises Advertising goods or services in a manner
216	that is fraudulent, false, deceptive, or misleading in form or
217	content.
218	(g)  Commits Committing an act of fraud or deceit, or of
219	negligence, incompetency, or misconduct, in the practice of
220	public accounting.
221	(h)  Violates Violation of any rule adopted under pursuant
222	to this chapter or chapter 455.
223	(i)  Practices public accounting with Practicing on a
224	revoked, suspended, inactive, or delinquent license.
225	(j)  Has Suspension or revocation of the right to practice
226	public accounting suspended or revoked by before any state or
227	federal agency.
228	(k)  Performs Performance of any fraudulent act in any
229	jurisdiction while holding a license to practice public
230	accounting in this state or while using practice privileges in
231	this state.
232	(l)  Fails Failing to maintain a good moral character as
233	provided in s. 473.308 while applying for licensure, or while
234	licensed in this state, or while using practice privileges under
235	pursuant to s. 473.3141.
236	(m)  Fails Failing to provide any written disclosure to a
237	client or the public which is required by this chapter or rule
238	adopted by of the board.
239	(n)  Has Having the same or equivalent practice privileges
240	of a Florida certified public accountant or firm revoked,
241	suspended, or otherwise acted against by the licensing authority
242	of another state, territory, or country as a result of activity
243	in that jurisdiction which would have subjected the Florida
244	certified public accountant or firm to discipline in this state.
245
246	(2)  The board shall specify, by rule, what acts or omissions
247	constitute a violation of this subsection (1).
248	(2)  The disciplinary actions in subsection (3) may be
249	taken against any licensed audit firm or public accounting firm
250	licensed under s. 473.3101 engaged in the practice of public
251	accounting as defined in s. 473.302(8)(a) that:
252	(a)  Fails to enroll in a peer review program or undergo a
253	peer review as required under s. 473.3125.
254	(b)  Engages in material noncooperation with a peer review
255	administering organization approved by the board under s.
256	473.3125.
257	(3)  When the board finds any certified public accountant
258	or firm guilty of any of the grounds set forth in subsection
259	(1), or finds any licensed audit firm or public accounting firm
260	licensed under s. 473.3101 engaged in the practice of public
261	accounting as defined in s. 473.302(8)(a) guilty of any of the
262	grounds set forth in subsection (2), the board it may enter an
263	order imposing one or more of the following penalties:
264	(a)  Denial of an application for licensure.
265	(b)  Revocation or suspension of the certified public
266	accountant or licensed audit firm's or public accounting firm's
267	license or practice privileges in this state.
268	(c)  Imposition of an administrative fine not to exceed
269	$5,000 for each count or separate offense.
270	(d)  Issuance of a reprimand.
271	(e)  Placement of the certified public accountant on
272	probation for a period of time and subject to such conditions as
273	the board may specify, including requiring the certified public
274	accountant to attend continuing education courses or to work
275	under the supervision of another certified public accountant
276	licensee.
277	(f)  Restriction of the authorized scope of practice by the
278	certified public accountant.
279	(4)  The department shall, reissue the license of a
280	disciplined licensee upon certification by the board that a
281	certified public accountant, licensed audit firm, or public
282	accounting firm whose license was subject to discipline the
283	disciplined licensee has complied with all of the terms and
284	conditions set forth in the final order, reissue the license
285	under s. 473.311.
286	Section 5.  This act shall take effect July 1, 2011.

CODING: Words stricken are deletions; words underlined are additions.