Print Friendly HOUSE BILL NO. 31 – Accountant, license, qualifications
HOUSE BILL NO. 31
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H0031...........................................................by MR. SPEAKER
Requested by: Board of Accountancy
ACCOUNTANTS - Amends existing law relating to the Idaho Accountancy Act to
revise a definition; to revise qualifications for licensure and reciprocity;
to revise renewal and reinstatement provisions; to revise grounds for action
upon licenses; and to revise substantial equivalency provisions.
01/06 House intro - 1st rdg - to printing
Rpt prt - to Bus
01/22 Rpt out - rec d/p - to 2nd rdg
01/23 2nd rdg - to 3rd rdg
01/27 3rd rdg - PASSED - 70-0-0
AYES -- Andersen, Barraclough, Barrett, Bauer, Bedke, Bell, Bieter,
Black, Block, Boe, Bolz, Bradford, Campbell, Cannon, Clark, Collins,
Crow, Cuddy, Deal, Denney, Douglas, Eberle, Edmunson, Ellsworth,
Eskridge, Field(18), Field(23), Gagner, Garrett, Harwood, Henbest,
Jaquet, Jones, Kellogg, Kulczyk, Lake, Langford, Langhorst, Martinez,
McGeachin, McKague, Meyer, Miller, Mitchell, Moyle, Nacarrato, Nielsen,
Raybould, Ridinger, Ring, Ringo, Roberts, Robison, Rydalch, Sali,
Sayler, Schaefer, Shepherd, Shirley, Skippen, Smith(30), Smith(24),
Smylie, Snodgrass, Stevenson, Tilman, Trail, Wills, Wood, Mr. Speaker
NAYS -- None
Absent and excused -- None
Floor Sponsor - Deal
Title apvd - to Senate
01/28 Senate intro - 1st rdg - to Com/HuRes
01/31 Rpt out - rec d/p - to 2nd rdg
02/03 2nd rdg - to 3rd rdg
02/05 3rd rdg - PASSED - 33-0-2
AYES -- Andreason, Bailey, Brandt, Bunderson, Burkett, Burtenshaw,
Calabretta, Compton, Darrington, Davis, Gannon, Geddes, Goedde, Hill,
Ingram, Kennedy, Keough, Little, Lodge, Malepeai, Marley, McKenzie,
McWilliams, Noble, Noh, Pearce, Richardson, Schroeder, Stegner,
Stennett, Sweet, Werk, Williams
NAYS -- None
Absent and excused -- Cameron, Sorensen
Floor Sponsor - Andreason
Title apvd - to House
02/06 To enrol
02/07 Rpt enrol - Sp signed
02/10 Pres signed
02/11 To Governor
02/12 Governor signed
Session Law Chapter 14
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-seventh Legislature First Regular Session - 2003
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 31
BY MR. SPEAKER
Requested by: Board of Accountancy
1 AN ACT
2 RELATING TO THE IDAHO ACCOUNTANCY ACT; AMENDING SECTION 54-206, IDAHO CODE, TO
3 REVISE A DEFINITION; AMENDING SECTION 54-210, IDAHO CODE, TO REVISE PROVI-
4 SIONS RELATING TO QUALIFICATIONS FOR RECIPROCITY, TO REQUIRE CERTAIN
5 APPLICANTS FOR CERTIFICATE AND LICENSE TO COMPLETE A BOARD APPROVED ETHICS
6 EXAMINATION AND TO REQUIRE HOLDERS OF DESIGNATIONS ISSUED BY FOREIGN COUN-
7 TRIES TO BE OF GOOD MORAL CHARACTER; AMENDING SECTION 54-211, IDAHO CODE,
8 TO PROVIDE DESCRIPTIVE LANGUAGE, TO PROVIDE CORRECT TERMINOLOGY, TO PRO-
9 VIDE REFERENCE TO COMPILATION REPORTS, TO PROVIDE FOR NONRENEWAL OF
10 LICENSES, TO REVISE PROVISIONS RELATING TO REINSTATEMENT OF LICENSES, TO
11 PROVIDE FOR REENTRY INTO ACTIVE STATUS AND TO REQUIRE DISCLOSURE BY APPLI-
12 CANTS AND LICENSEES OF DISCIPLINARY ACTIONS AND CONVICTIONS OF OR GUILTY
13 PLEAS TO A FELONY; AMENDING SECTION 54-214, IDAHO CODE, TO PROVIDE REFER-
14 ENCE TO COMPILATION REPORTS, TO MAKE A GRAMMATICAL CHANGE AND TO REVISE
15 REQUIREMENTS RELATING TO FIRM PEER REVIEWS; AMENDING SECTION 54-219, IDAHO
16 CODE, TO REVISE GROUNDS FOR WHICH THE BOARD MAY ACT UPON LICENSES TO
17 INCLUDE CONVICTIONS UNDER THE LAWS OF ANY STATE OR COUNTRY AND TO REMOVE
18 LANGUAGE RELATING TO NONPAYMENT OF ANNUAL LICENSE FEES; AMENDING SECTION
19 54-220, IDAHO CODE, TO PROVIDE REFERENCE TO COMPILATION REPORTS; AMENDING
20 SECTION 54-226, IDAHO CODE, TO MAKE A TECHNICAL CORRECTION; AND AMENDING
21 SECTION 54-227, IDAHO CODE, TO REVISE PROVISIONS RELATING TO SUBSTANTIAL
23 Be It Enacted by the Legislature of the State of Idaho:
24 SECTION 1. That Section 54-206, Idaho Code, be, and the same is hereby
25 amended to read as follows:
26 54-206. DEFINITIONS. As used in this section:
27 (1) "AICPA" means the American institute of certified public accountants.
28 (2) "Applicant" means any person having the requisite qualifications who
29 makes application to the board for examination, or for initial issuance or
30 renewal or reinstatement of a license under the provisions of this chapter.
31 (3) "Attest" means providing the following financial statement services:
32 (a) Any audit or other engagement to be performed in accordance with the
33 statements on auditing standards;
34 (b) Any review of a financial statement to be performed in accordance
35 with the statements on standards for accounting and review services; and
36 (c) Any examination of prospective financial information to be performed
37 in accordance with the statements on standards for attestation engage-
39 (4) "Board" means the Idaho state board of accountancy.
40 (5) "Certificate" means that document issued by the board upon original
41 approval of licensure. The original certificate does not constitute licensure
42 and a person cannot represent himself or herself as a licensee unless a cur-
43 rent and valid annual license has been issued by the board.
1 (6) "Certified public accountant" means any person who holds a valid,
2 unrevoked and unsuspended license under the provisions of chapter 2, title 54,
3 Idaho Code, or an equivalent provision of the laws of another state designat-
4 ing said person as a certified public accountant.
5 (7) "Client" means the person or entity that agrees with a licensee or
6 licensee's employer to receive any professional services with or without com-
7 pensation and shall include all affiliates and related entities in the finan-
8 cial statements of an attest or compilation engagement.
9 (8) "Compilation" means a service performed in accordance with statements
10 on standards for accounting and review services which presents, in the form of
11 historical or prospective financial statements, information that is the repre-
12 sentation of management or owners without undertaking to express any assurance
13 on the statements. The term "compilation" does not include financial state-
14 ments accompanied by the language set forth in section 54-226(3), Idaho Code,
15 (whether used by a licensee or by a person not licensed under this chapter) so
16 long as the financial statements are not accompanied by any other language of
17 assurance or disclaimer.
18 (9) "Financial statements" means a presentation of historical or prospec-
19 tive financial data, which may include accompanying notes, intended to commu-
20 nicate an entity's economic resources or obligations at a point in time, or
21 the changes therein for a period of time, in accordance with a comprehensive
22 basis of accounting.
23 (10) "Firm" means a proprietorship, partnership, professional corporation,
24 professional limited liability company, or any other form of professional
25 organization permitted by Idaho law, registered under the requirements of sec-
26 tion 54-214, Idaho Code.
27 (11) "Good moral character" means lack of a history of dishonest dealings
28 or a felonious act.
29 (12) "License" means that authorization issued by the board upon original
30 approval and on an annual basis permitting a qualified person to practice as a
31 certified public accountant or licensed public accountant in the state of
33 (13) "Licensed public accountant" or "LPA" means any person who holds a
34 valid, unrevoked and unsuspended license under the provisions of chapter 2,
35 title 54, Idaho Code, designating said person as a licensed public accountant.
36 (14) "Licensee" means the holder of a current valid license.
37 (15) "Member" means a person who has been admitted to membership in a firm
38 which is organized as a limited liability company.
39 (16) "Peer review" means a board approved study, appraisal or review of
40 one (1) or more aspects of the professional work of a licensee or firm that
41 performs attest or compilation services or issues compilation reports, by a
42 person or persons licensed under this chapter or by another state and who are
43 independent of the licensee or firm being reviewed.
44 (17) "Permit" means a permit to practice as a firm issued under corre-
45 sponding provisions of the laws of other states.
46 (18) "Person" means any natural living person.
47 (19) "Professional services" means services arising out of or related to
48 the specialized knowledge or skills associated with certified public accoun-
49 tants or licensed public accountants.
50 (20) "Report," when used with reference to financial statements, means an
51 opinion or other form of language that states or implies assurance as to the
52 reliability of any financial statements and that also includes or is accompa-
53 nied by any statement or implication that the person or firm issuing it has
54 special knowledge or competence in accounting or auditing. Such a statement or
55 implication of special knowledge or competence may arise from use by the
1 issuer of the report of names or titles indicating that the person or firm is
2 an accountant or auditor, or from the language of the report itself. The term
3 "report" includes any form of language which disclaims an opinion when such
4 form of language is conventionally understood to imply any positive assurance
5 as to the reliability of the financial statements referred to or special com-
6 petence on the part of the person or firm issuing such language; and it
7 includes any other form of language that is conventionally understood to imply
8 such assurance or special knowledge or competence.
9 (21) "State" means any state of the United States, the District of Colum-
10 bia, Puerto Rico, the U.S. Virgin Islands and Guam; except that "this state"
11 means the state of Idaho.
12 (22) "Substantial equivalency" or "substantially equivalent" means a
13 determination by the board that the education, examination and experience
14 requirements contained in the statutes and administrative rules of another
15 jurisdiction are comparable to or exceed the education, examination and expe-
16 rience requirements for CPAs contained in this chapter or that an individual
17 licensee's education, examination and experience qualifications are comparable
18 to or exceed the education, examination and experience requirements for CPAs
19 contained in this chapter.
20 SECTION 2. That Section 54-210, Idaho Code, be, and the same is hereby
21 amended to read as follows:
22 54-210. RECIPROCITY -- TRANSFER OF EXAMINATION GRADES -- FOREIGN RECI-
23 PROCITY -- QUALIFICATIONS. (1) A person whose certificate and license have
24 been granted by another state, whose principal place of business is located in
25 this state, shall obtain a license by reciprocity from the board before pro-
26 viding professional services in this state.
27 (2) (a) An applicant for certificate and license by reciprocity to prac-
28 tice as a certified public accountant in Idaho must:
29 ( ai) Be eighteen (18) years of age or older;
30 ( bii) Be of good moral character;
31 ( ciii) Have obtained the education and passed the uniform CPA exami-
32 nation with standards no less than those required in Idaho . The
33 requirements of education and the Idaho standards relating to passage
34 of the uniform CPA examination shall be waived if the applicant has
35 no less than four (4) years' experience as determined by the board,
36 provided that the experience or its equivalent was obtained after
37 original licensure as a certified public accountant and within the
38 ten (10) years immediately preceding the reciprocity application; and
39 ( div) Have completed the necessary experience, continuing profes-
40 sional education, and board approved ethics examination required for
41 issuance of a license in Idaho and hold a current license in good
42 standing in another licensing jurisdiction.
43 (b) The requirements of subsection (2)(a) of this section relating to
44 education, Idaho standards relating to passage of the uniform CPA examina-
45 tion, experience, continuing professional education and ethics examination
46 shall be waived if the applicant has no less than four (4) years' experi-
47 ence as determined by the board, provided that the experience or its
48 equivalent was obtained after original licensure as a certified public
49 accountant and within the ten (10) years immediately preceding the reci-
50 procity application.
51 (3) (a) A person holding an inactive or retired certificate and license
52 granted by another state, whose principal place of business is located in
53 this state, may apply for an equivalent license by reciprocity from the
1 board, provided the applicant must:
2 (i) Meet the requirements for an inactive license as set forth in
3 section 54-211(1)(c), Idaho Code, or the requirements for a retired
4 license as set forth in section 54-211(1)(d), Idaho Code;
5 (ii) Be of good moral character;
6 (iii) Have obtained the education and passed the uniform CPA examina-
7 tion with standards no less than those required in Idaho; and
8 (iv) Have completed the necessary experience and board approved eth-
9 ics examination required for issuance of a license in Idaho.
10 (b) The requirements of subsection (3)(a) of this section relating to
11 education, Idaho standards relating to passage of the uniform CPA examina-
12 tion, experience and ethics examination shall be waived if the applicant
13 has no less than four (4) years' experience as determined by the board,
14 provided that the experience or its equivalent was obtained after original
15 licensure as a certified public accountant and within the ten (10) years
16 immediately preceding the reciprocity application.
17 (4) An applicant for certificate and license to practice as a certified
18 public accountant in Idaho by transfer of examination grades from another
19 licensing jurisdiction must:
20 (a) Be eighteen (18) years of age or older;
21 (b) Be of good moral character;
22 (c) Have obtained the necessary education and have passed the uniform CPA
23 examination with standards no less than those prescribed by the board's
24 rules for examination candidates in Idaho; and
25 (d) Possess experience qualifications as required under section 54-209,
26 Idaho Code, and complete a board approved ethics examination required for
27 issuance of a license in Idaho.
28 ( 45) The board shall issue a certificate and license to a holder of a
29 substantially equivalent designation issued by a foreign country, provided
31 (a) The foreign authority which granted the designation makes similar
32 provision to allow a person who holds a valid certificate and license
33 issued by this state to obtain such foreign authority's comparable desig-
34 nation; and
35 (b) The designation:
36 (i) Was duly issued by an authority of a foreign country which reg-
37 ulates the practice of public accountancy and has not expired or been
38 revoked or suspended;
39 (ii) Entitles the holder to issue reports upon financial statements;
41 (iii) Was issued upon the basis of substantially equivalent educa-
42 tional, examination and experience requirements established by the
43 foreign authority or by law; and
44 (c) The applicant:
45 (i) Received the designation, based on educational and examination
46 standards substantially equivalent to those in effect in this state,
47 at the time the foreign designation was granted;
48 (ii) Completed an experience requirement, substantially equivalent
49 to the requirements set out in this chapter, in the jurisdiction
50 which granted the foreign designation or has completed four (4) years
51 of professional experience in this state; or meets equivalent
52 requirements prescribed by the board by rule, within the ten (10)
53 years immediately preceding the application; and
54 (iii) Passed a uniform qualifying examination in national standards
55 acceptable to the board; and
1 (iv) Is of good moral character.
2 SECTION 3. That Section 54-211, Idaho Code, be, and the same is hereby
3 amended to read as follows:
4 54-211. LICENSES -- LICENSING PERIOD -- NONRENEWAL -- REINSTATEMENT --
5 INACTIVE LICENSES -- RETIREMENT -- FEES. (1) The board shall issue original
6 initial certificates and licenses, and renewal and reinstatement licenses to
7 practice as a certified public accountant, and renewal and reinstatement
8 licenses to practice as a licensed public accountant to persons who have qual-
9 ified therefor in accordance with the provisions of this chapter and the rules
10 of the board. A certificate and license, once issued, shall continue in effect
11 so long as the holder thereof complies with the provisions of this chapter and
12 the rules and orders of the board.
13 (a) Original Initial. The board shall collect an original initial license
14 fee upon board approval of an original initial license to practice as a
15 certified public accountant in the state of Idaho as set forth in section
16 54-212, Idaho Code, and as prescribed by the rules of the board. Those
17 individuals meeting the requirements for original initial licensure in
18 Idaho, pursuant to the provisions of this chapter and the rules of the
19 board, shall be issued a license effective for no more than twelve (12)
20 months. The license shall then be subject to annual renewal.
21 (b) Renewal. The board shall collect an annual license fee from all
22 licensees each year as set forth in section 54-212, Idaho Code, and as
23 prescribed by the rules of the board. Those persons meeting the require-
24 ments of this subsection for license renewal shall be issued a license
25 effective for a period of one (1) year after its issuance. Requirements
27 (i) Good moral character;
28 (ii) Completion of continuing professional education as specified by
29 the board's rules;
30 (iii) Identification, in the renewal application, of the firm with
31 which the licensee is affiliated; and
32 (iv) Where applicable, verification of satisfactory completion of a
33 peer review program by the firm with which the licensee is affili-
34 ated, pursuant to section 54-214, Idaho Code, and the rules pre-
35 scribed by the board. Any licensee who performs issues compilation
36 services reports for the public other than through a firm must
37 undergo no more frequently than once every three (3) years, a peer
38 review conducted in accordance with rules prescribed by the board,
39 and such review shall include verification that such licensee has met
40 the competency requirements set out in professional standards for
41 such service.
42 (c) Inactive status. Any licensee in current compliance with the provi-
43 sions of this chapter who chooses not to perform or offer to perform for
44 the public one (1) or more kinds of attest or compilation services may
45 apply to place his or her license in inactive status. The annual renewal
46 fee for inactive status shall be as set forth in section 54-212, Idaho
47 Code, and as prescribed by the rules of the board. Licensees with inactive
48 status must place the word "inactive" adjacent to their CPA or LPA title
49 on any business card, letterhead or any other document or device when
50 using the title, with the exception of their certificate on which their
51 title appears.
52 (d) Retired. After a person reaches the age of sixty (60) years, or in
53 the event of a disability preventing continued practice, the certificate
1 of a certified public accountant or licensed public accountant, upon
2 application to the board by the holder, may be placed by the board in
3 retired status. Retired status shall allow the holder to retain the wall
4 certificate and remain on the board's mailing list. The annual renewal fee
5 for retired status shall be as set forth in section 54-212, Idaho Code,
6 and as prescribed by the rules of the board. Licensees with retired status
7 must place the word "retired" adjacent to their CPA or LPA title on any
8 business card, letterhead or any other document or device when using the
9 title, with the exception of their certificate on which their title
10 appears. An individual who performs or offers to perform for the public
11 attest or compilation services shall not qualify for retired status.
12 (e) Nonrenewal. A licensee may place the license into lapsed status as
13 prescribed by the rules of the board rather than renew the license. Any
14 license not renewed or placed into lapsed status within thirty (30) days
15 after the expiration of the previous license shall be automatically placed
16 into lapsed status.
17 (f) Reinstatement. Any certificate and license suspended for nonpayment
18 of the annual renewal fee, or a certificate in retired or inactive placed
19 in lapsed status , may be reinstated upon completion of an application sup-
20 plied by the board along with payment of a reinstatement fee as set forth
21 in section 54-212, Idaho Code, and as prescribed by the rules of the
22 board. In addition, the board shall require the applicant to meet the
23 qualifications of subsection (b) of this section. Reinstatement following
24 involuntary suspension shall be governed by the terms of the board's order
25 of involuntary suspension.
26 (g) Reentry. A license in inactive or retired status may reenter active
27 status upon completion of an application supplied by the board along with
28 payment of a reentry fee as prescribed by the rules of the board. In addi-
29 tion, the board shall require the applicant to meet the qualifications set
30 forth in subsection (1)(b) of this section.
31 (2) Applicants for initial issuance or reinstatement of licenses under
32 this section shall in their application list all states in which they have
33 applied for or hold a license and list any past disciplinary action against or
34 denial, revocation or suspension of a certificate, license or permit.
35 (3) Applicants and licensees shall notify the board in writing, within
36 thirty (30) days after its occurrence of:
37 (a) Any felony charges or convictions of, or guilty pleas to, a felony;
39 (b) The issuance, Any disciplinary action against or the denial, restric-
40 tion, revocation or suspension of a certificate, license or permit by
41 another state or by any federal agency.
42 SECTION 4. That Section 54-214, Idaho Code, be, and the same is hereby
43 amended to read as follows:
44 54-214. FIRM REGISTRATION -- PEER REVIEW. (1) The board shall register
45 firms that make application and demonstrate their qualifications therefor in
46 accordance with the following subsections of this section or to firms origi-
47 nally licensed in another state that establish an office in this state. A firm
48 must be registered with the board in order to provide attest or compilation
49 services or compilation reports or in order to use the titles "CPAs," "CPA
50 firm," "LPAs" or "LPA firm." Firms must register with the board annually in on
51 such form and between such dates as the board may specify by rule. The board
52 may charge a fee for each registration for initial issuance or renewal of a
53 registration under this section as set forth in section 54-212, Idaho Code,
1 and as prescribed by the rules of the board.
2 (2) An applicant for initial registration or renewal of a registration to
3 practice under this section shall demonstrate that:
4 (a) Notwithstanding any other provision of law, a simple majority of the
5 beneficial ownership of the firm belongs to holders of a certificate who
6 are licensed in some state, and such partners, officers, shareholders,
7 members or managers, whose principal place of business is in this state,
8 and who perform professional services in this state, hold a valid certifi-
9 cate and license issued by this state. Although a firm may include
10 nonlicensee owners the firm and its ownership must comply with rules pro-
11 mulgated by the board.
12 (b) Any firm may include nonlicensee owners provided that:
13 (i) The firm designates a licensee of this state, who is responsi-
14 ble for the proper registration of the firm and identifies that indi-
15 vidual to the board.
16 (ii) All nonlicensees are active individual participants in the firm
17 or affiliated entities.
18 (iii) The firm complies with such other requirements as the board may
19 impose by rule.
20 (c) Any licensee who is responsible for supervising attest or compilation
21 services or compilation reports or who signs or authorizes someone to sign
22 a report on financial statements on behalf of the firm, shall meet the
23 competency requirements of the professional standards for such services.
24 (3) Firms registered to practice under this section shall be required to
25 register each office of the firm within this state with the board and to show
26 that all attest and compilation services reports rendered in this state are
27 under the charge of a person holding a valid certificate and license issued by
28 this state or some other state.
29 (4) A firm registering under this section shall list all states in which
30 it has applied for or holds permits as a firm and list any past denial, revo-
31 cation or suspension of a permit by any other state. Each firm registered
32 under this section shall notify the board in writing, within thirty (30) days
33 following any change in the identities of partners, officers, shareholders or
34 members whose principal place of business is in this state, any change in the
35 number or location of offices within this state, any change in the identity of
36 the persons in charge of such offices, and any issuance, denial, revocation or
37 suspension of a permit by any other state.
38 (5) Firms which fall out of compliance with the provisions of this sec-
39 tion due to changes in firm ownership or personnel, after registration, shall
40 take corrective action to bring the firm back into compliance as quickly as
41 possible. The board may grant a reasonable period of time for a firm to take
42 such corrective action. Failure to bring the firm back into compliance within
43 a reasonable period as defined by the board may result in penalties as pre-
44 scribed by board rule.
45 (6) As a condition of registration renewal under this section, the board,
46 by rule, shall require firms to undergo, no more frequently than once every
47 three (3) years, peer reviews conducted comply with peer review requirements
48 as specified by rule. Such review shall include a verification that individu-
49 als in the firm who are responsible for supervising attest and compilation
50 services reports and who sign or authorize someone to sign a report on finan-
51 cial statements on the behalf of the firm meet the competency requirements set
52 out in the professional standards for such services. The rules concerning peer
53 review shall require:
54 (a) Peer reviews to be subject to oversight by an oversight body estab-
55 lished by board rule which will periodically report to the board on the
1 effectiveness of the review program under its charge, and provide to the
2 board a listing of firms that have participated in a peer review program
3 that is satisfactory to the board; and
4 (b) The peer review processes to be operated and documents maintained in
5 a manner designed to preserve confidentiality, and that neither the board
6 nor any third party, other than the oversight body, shall have access to
7 documents furnished or generated in the course of the review.
8 (7) Information discovered solely as a result of a firm's peer review
9 shall not be grounds for suspension or revocation of a license.
10 SECTION 5. That Section 54-219, Idaho Code, be, and the same is hereby
11 amended to read as follows:
12 54-219. LICENSE -- RESTRICTION, REVOCATION, SUSPENSION OR DENIAL --
13 CAUSES -- COST RECOVERY -- ADMINISTRATIVE PENALTIES. (1) After notice and
14 opportunity for hearing in accordance with the provisions of chapter 52, title
15 67, Idaho Code, for cause shown, the board may revoke, suspend, refuse to
16 renew, administratively penalize, reprimand, restrict or place on probation
17 the holder of a certificate or license, or refuse to issue any certificate or
18 any license to an applicant, for any one (1) of the following causes:
19 (a) Any false statement with the intent to mislead or deceive the board
20 or its members in connection with any application; or, cheating or any
21 attempt to cheat in an examination.
22 (b) Fraud or deceit in obtaining or renewing a certificate or license to
23 practice as a certified public accountant or licensed public accountant
24 under the provisions of this chapter.
25 (c) Dishonesty, fraud or gross negligence in the performance of profes-
26 sional services as a licensee or individual granted privileges under sec-
27 tion 54-227, Idaho Code, or in the filing or failure to file his own
28 income tax returns.
29 (d) Violation of any provision of this chapter, or any rule adopted by
30 the board under authority granted by this chapter, or an order of the
31 board directed specifically to the licensee.
32 (e) Conviction of or a guilty plea to a felony under the laws of any
33 state or of the United States country.
34 (f) Conviction of or a guilty plea to any crime involving moral turpi-
35 tude, an element of which is dishonesty or fraud, under the laws of any
36 state or of the United States country.
37 (g) Representing oneself as a certified public accountant or licensed
38 public accountant during any period in which the license of the person so
39 practicing has been suspended or revoked by the board.
40 (h) Cancellation, revocation, suspension or refusal to renew or grant a
41 license or privileges under section 54-227, Idaho Code, for disciplinary
42 reasons by any other state for any cause.
43 (i) Practicing as a certified public accountant or licensed public
44 accountant under a false or assumed name; provided, however, this subsec-
45 tion shall have no application to practicing as a certified public accoun-
46 tant or licensed public accountant under the name of a firm, when such
47 style or name is in conformity with a type or form approved by the rules
48 of the board.
49 (j) Habitual use of drugs or intoxicants to such a degree as to render
50 the licensee unreliable and unfit to practice as a certified public
51 accountant or licensed public accountant.
52 (k) Suspension or revocation of the right to practice before any agency
53 of the United States government or of the state of Idaho, for any cause
1 other than failure to pay a registration or similar fee.
2 (l) Having been declared mentally incompetent by a court of competent
3 jurisdiction; provided, however, that when a person's license shall have
4 been revoked or suspended for this cause, such license shall be reinstated
5 by the board when said disability is judicially removed.
6 (m) Nonpayment of the annual license fee required by this chapter, said
7 nonpayment having continued for a period of thirty (30) days after the
8 expiration of the previous license.
9 (n) Representing oneself as qualified or authorized to practice as a cer-
10 tified public accountant or licensed public accountant in this state with-
11 out holding a current, valid, unrevoked and unsuspended certificate and
12 license or privileges under section 54-227, Idaho Code.
13 ( on) Performance of any fraudulent act while holding a certificate,
14 license, permit or privileges under this chapter.
15 ( po) Any conduct reflecting adversely upon the licensee's fitness to per-
16 form services while a licensee, or individual granted privileges under
17 section 54-227, Idaho Code.
18 (2) The expenses, including attorney's fees, incurred by the board for
19 any or all proceedings initiated against a person for violation of any of the
20 provisions of this chapter may be charged against such person by the board,
21 upon the finding of a violation of this chapter, in addition to any adminis-
22 trative penalties which may be levied by the board against such person. Admin-
23 istrative penalties levied by the board shall not exceed two thousand five
24 hundred dollars ($2,500) per violation.
25 (3) In lieu of or in addition to any remedy specifically provided, the
26 board may require of a licensee or a firm:
27 (a) A peer review conducted in such fashion as the board may specify;
28 (b) Preissuance review;
29 (c) Satisfactory completion of such continuing professional education
30 programs or examinations as the board may specify; and
31 (d) Other similar remedies.
32 (4) In any action brought under the provisions of this chapter, evidence
33 of the commission of a single act prohibited in this chapter shall be suffi-
34 cient to justify a suspension, revocation, fine, administrative penalty,
35 restriction, reprimand, injunction, restraining order, conviction or any other
36 remedy authorized in this chapter. Evidence of a general course of conduct
37 shall not be required.
38 SECTION 6. That Section 54-220, Idaho Code, be, and the same is hereby
39 amended to read as follows:
40 54-220. USE OF TITLE -- VALID LICENSE TO PRACTICE. (1) No person shall
41 assume or use the title or designation "certified public accountant" or
42 "licensed public accountant" or any other title, designation, words, letters,
43 abbreviations, sign, card or device tending to indicate that such person is a
44 certified public accountant or licensed public accountant unless such person
45 holds a license or is granted privileges as a certified public accountant or
46 licensed public accountant pursuant to chapter 2, title 54, Idaho Code.
47 (2) No person or firm not licensed, granted privileges or registered pur-
48 suant to this chapter shall assume or use the title or designation "certified
49 accountant," "chartered accountant," "public accountant," "enrolled accoun-
50 tant," "licensed accountant," "registered accountant," "accredited accoun-
51 tant," or other titles or designation likely to be confused with the titles
52 "certified public accountant" or "licensed public accountant" or use any of
53 the abbreviations "CA," "LA," "LPA," "CPA," "RA," "AA," or similar abbrevia-
1 tion likely to be confused with the abbreviations "CPA" or "LPA." The title
2 "enrolled agent" or "EA" may only be used by individuals so designated by the
3 internal revenue service. Notwithstanding the provisions of this section, the
4 board may adopt rules authorizing and limiting the use of specific titles and
5 designations granted by recognized professional societies or associations.
6 (3) No person, proprietorship, partnership or corporation not licensed or
7 registered pursuant to this chapter shall assume or use any title or designa-
8 tion that includes the words "accountant," "auditor" or "accounting" in con-
9 nection with any other language, including the language of a report, that
10 implies that such person, proprietorship, partnership or corporation is so
11 licensed or registered or has special competence as an accountant or auditor;
12 provided however, that this subsection does not prohibit any officer, partner,
13 member or employee of any organization from affixing his signature to any
14 statement in reference to the financial affairs of such organization with any
15 wording designating the position, title or office that he holds therein nor
16 prohibit any act of a public official or employee in the performance of his
17 duties as such.
18 (4) No business entity shall provide attest or compilation services or
19 compilation reports or assume or use the title "certified public accountants"
20 or "licensed public accountants" or the abbreviation "CPAs," "LPAs" or any
21 other title, designation, words, letters, abbreviations, sign, card or device
22 tending to indicate that such business entity is a firm unless: (a) the busi-
23 ness entity is a firm registered pursuant to this chapter, and (b) ownership
24 of the firm is in accord with this chapter and rules promulgated by the board.
25 SECTION 7. That Section 54-226, Idaho Code, be, and the same is hereby
26 amended to read as follows:
27 54-226. INAPPLICABILITY OF CHAPTER. (1) This chapter shall not be con-
28 strued to prevent any person from rendering tax services, management advisory
29 or consulting services, or from preparing financial statements without the
30 expression of an opinion or an assurance.
31 (2) This chapter shall not be construed to prevent any person from stat-
32 ing that he has prepared, assembled or drafted a financial statement, provided
33 he does not use any additional language which comprises an assurance.
34 (3) The prohibitions of section 54-221, Idaho Code, and the other provi-
35 sions of this chapter shall not be construed to preclude the use of the fol-
36 lowing language by any person: "I (We) have prepared the accompanying
37 (financial statements) of (name of entity) as of (time period) for the
38 (period) then ended. This presentation is limited to preparing in the form of
39 financial statements information that is the representation of management
40 (owners). I (We) have not audited or reviewed the accompanying financial
41 statements and, accordingly, do not express an opinion or any other form of
42 assurance on them."
43 SECTION 8. That Section 54-227, Idaho Code, be, and the same is hereby
44 amended to read as follows:
45 54-227. SUBSTANTIAL EQUIVALENCY. (1) A person whose principal place of
46 business is not in this state and who has an valid active certificate and
47 license as a certified public accountant from any state which the board has
48 determined to be substantially equivalent to this chapter shall be presumed to
49 have qualifications substantially equivalent to this state's requirements and
50 shall have all the privileges of licensees of this state without the need to
51 obtain a license. However, such persons shall notify the board of their intent
1 to enter the state under this provision. The board may charge a fee for such
2 notification as set forth in section 54-212, Idaho Code, and as prescribed by
3 rules of the board.
4 (2) A person whose principal place of business is not in this state and
5 who has an valid active certificate and license as a certified public accoun-
6 tant from any state which the board has not determined to be substantially
7 equivalent to this chapter shall be presumed to have qualifications substan-
8 tially equivalent to this state's requirements and shall have all the privi-
9 leges of licensees of this state without the need to obtain a license only if
10 such person demonstrates that his or her qualifications are substantially
11 equivalent to the licensure requirements of this chapter. The requirement to
12 demonstrate substantially equivalent qualifications shall be waived if the
13 applicant has no less than four (4) years' experience as determined by the
14 board, provided that the experience or its equivalent was obtained after orig-
15 inal licensure as a certified public accountant and within the ten (10) years
16 immediately preceding the practice privilege application. Such persons shall
17 notify the board of their intent to enter the state under this provision in
18 the manner provided by rules of the board. The board may charge a fee for such
19 notification as set forth in section 54-212, Idaho Code, and as prescribed by
20 rules of the board.
21 (3) Licensees of other states exercising the privilege afforded under
22 this section hereby consent, as a condition of the grant of this privilege:
23 (a) To the personal and subject matter jurisdiction and disciplinary
24 authority of the board;
25 (b) To comply with this chapter and the board's rules; and
26 (c) To the appointment of the state boards which issued their licenses as
27 their agents upon whom process may be served in any action or proceeding
28 by this state's board against such licensees.
29 (4) A licensee of this state offering or rendering services or using the
30 CPA title in another state shall be subject to disciplinary action in this
31 state for an act committed in another state for which the licensee would be
32 subject to discipline for an act committed in another state. Notwithstanding
33 the board's enforcement authority granted by this chapter, the board shall
34 investigate any complaint made by the board of accountancy of another state.
STATEMENT OF PURPOSE
In the 2002 Legislative Session, the Idaho Society of CPAs
introduced HB 485 which moderized the way in which CPAs are
licensed and regulated in the state of Idaho. The bill reflected
changes that are being adopted nationwide. The Idaho State Board
of Accountancy supported HB 485. As with any major change to Idaho
Code, we have found corrections that need to be made. This
legislative proposal clarifies intent, corrects inconsistent
references between the law and the rules, adopts recommendations
from Legislative Services, and allows non-renewed licenses to go
into lapsed status.
There is no fiscal impact to the General Fund or the Board's
Name: Barbara R.Porter
Agency: Accountancy, Board of
Name: Melissa Nelson
Agency: Idaho Society of CPAs
Statement of Purpose/Fiscal Impact H 3