Print Friendly HOUSE BILL NO. 379
– Public accountants, licensure
HOUSE BILL NO. 379
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CERTIFIED PUBLIC ACCOUNTANTS - Amends existing law to revise provisions
relating to the examination to become a certified public accountant; to
require experience for licensure to be verified by an active licensee; to
revise qualifications for a reciprocal license; to delete the fee for
notification that a public accountant licensed in another state intends to
provide accounting services in Idaho; to provide for confidentiality of
client records; and to revise provisions limiting the provision of public
accounting services by public accountants licensed in other states.
01/22 House intro - 1st rdg - to printing
01/23 Rpt prt - to Bus
02/14 Rpt out - rec d/p - to 2nd rdg
02/15 2nd rdg - to 3rd rdg
02/19 3rd rdg - PASSED - 66-0-4
AYES -- Anderson, Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black,
Block, Bock, Boe, Bolz, Bowers, Brackett, Bradford, Chadderdon,
Chavez, Chew, Clark, Collins, Crane, Eskridge, Hagedorn, Hart,
Harwood, Henbest(Burgoyne), Henderson, Jaquet, Killen, King, Kren,
Labrador, Lake, LeFavour, Loertscher, Luker, Marriott, Mortimer,
Moyle, Nielsen, Nonini, Pasley-Stuart, Patrick, Pence, Raybould,
Ringo, Roberts, Ruchti, Rusche, Sayler, Schaefer, Shepherd(02),
Shepherd(08), Shirley, Shively, Smith(24), Smith(30)(Stanek),
Snodgrass, Stevenson, Thayn, Thomas, Trail, Vander Woude, Wills,
NAYS -- None
Absent and excused -- Durst, Mathews, McGeachin, Mr. Speaker
Floor Sponsor - Rusche
Title apvd - to Senate
02/20 Senate intro - 1st rdg - to Com/HuRes
02/29 Rpt out - rec d/p - to 2nd rdg
03/03 2nd rdg - to 3rd rdg
03/06 3rd rdg - PASSED - 34-0-1
AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
Cameron, Coiner, Corder, Darrington, Fulcher, Gannon, Geddes, Goedde,
Hammond, Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst, Little,
Lodge, Malepeai(Sagness), McGee, McKague, McKenzie, Pearce,
Richardson, Schroeder, Siddoway, Stegner, Stennett, Werk
NAYS -- None
Absent and excused -- Davis
Floor Sponsor - Broadsword
Title apvd - to House
03/07 To enrol
03/10 Rpt enrol - Sp signed
03/11 Pres signed - To Governor
03/17 Governor signed
Session Law Chapter 128
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature Second Regular Session - 2008
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 379
BY BUSINESS COMMITTEE
1 AN ACT
2 RELATING TO THE PRACTICE OF PUBLIC ACCOUNTING; AMENDING SECTION 54-204, IDAHO
3 CODE, TO CORRECT A CODE REFERENCE; AMENDING SECTION 54-206, IDAHO CODE, TO
4 REVISE DEFINITIONS AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION
5 54-208, IDAHO CODE, TO REVISE PROVISIONS RELATING TO THE EXAMINATION TO
6 BECOME A CERTIFIED PUBLIC ACCOUNTANT AND TO MAKE TECHNICAL CORRECTIONS;
7 AMENDING SECTION 54-209, IDAHO CODE, TO REQUIRE EXPERIENCE FOR LICENSURE
8 TO BE VERIFIED BY AN ACTIVE LICENSEE AND TO MAKE A TECHNICAL CORRECTION;
9 AMENDING SECTION 54-210, IDAHO CODE, TO REVISE QUALIFICATIONS FOR A RECIP-
10 ROCAL LICENSE; AMENDING SECTION 54-211, IDAHO CODE, TO REVISE A RETIREMENT
11 AGE; AMENDING SECTION 54-212, IDAHO CODE, TO DELETE THE FEE FOR NOTIFICA-
12 TION THAT A PUBLIC ACCOUNTANT LICENSED IN ANOTHER STATE INTENDS TO PROVIDE
13 ACCOUNTING SERVICES IN IDAHO; AMENDING SECTION 54-213, IDAHO CODE, TO
14 REVISE THE GRANDFATHER CLAUSE; AMENDING SECTION 54-214, IDAHO CODE, TO
15 REVISE CONFIDENTIALITY OF CLIENT RECORDS; AND AMENDING SECTION 54-227,
16 IDAHO CODE, TO DELETE CERTAIN NOTIFICATIONS AND A FEE AND TO REVISE PROVI-
17 SIONS LIMITING THE PROVISION OF PUBLIC ACCOUNTING SERVICES BY PUBLIC
18 ACCOUNTANTS LICENSED IN OTHER STATES.
19 Be It Enacted by the Legislature of the State of Idaho:
20 SECTION 1. That Section 54-204, Idaho Code, be, and the same is hereby
21 amended to read as follows:
22 54-204. POWERS AND DUTIES. The Idaho state board of accountancy, in addi-
23 tion to the other powers and duties set forth in this chapter, shall have the
24 following powers and duties:
25 (1) To adopt and amend rules in accordance with the provisions of the
26 administrative procedure act, chapter 52, title 67, Idaho Code, governing its
27 administration and the enforcement of this chapter and the conduct of licen-
28 sees including, but not limited to:
29 (a) Rules governing the board's meetings and the conduct of its business;
30 (b) Rules of procedure governing the conduct of investigations and hear-
31 ings by the board;
32 (c) Rules specifying the education, examination and experience qualifica-
33 tions required for the issuance of certificates, and the continuing pro-
34 fessional education required for renewal of licenses;
35 (d) Rules of professional conduct directed to controlling the quality and
36 probity of professional services by licensees, and dealing among other
37 things with independence, integrity and objectivity; competence and tech-
38 nical standards; responsibilities to the public; and responsibilities to
40 (e) Rules governing the professional standards applicable to licensees;
41 (f) Rules governing the manner and circumstances of use of the titles
42 "certified public accountant" and "licensed public accountant";
43 (g) Rules regarding peer reviews that may be required to be performed
1 under the provisions of this chapter;
2 (h) Rules on substantial equivalency to implement section 54-227, Idaho
4 (i) Rules adopting statements on standards as specified in section
5 54-206 (3), Idaho Code, which, if the board may deem appropriate, shall be
6 those standards developed for general application by recognized accoun-
7 tancy organizations such as the AICPA, as such statements are established
8 from time to time; and
9 (j) Such other rules as the board may deem necessary or appropriate to
10 implement or administer the provisions and purposes of this chapter.
11 (2) To issue original certificates of qualification and licenses to prac-
12 tice as certified public accountants to such applicants as may be qualified by
13 reciprocity, transfer of examination grades or by examination.
14 (3) To charge and collect from all applicants, certificate holders, and
15 licensees such fees as are provided by this chapter and prescribed by rules of
16 the board.
17 (4) To initiate or receive complaints, cause the same to be investigated,
18 initiate proceedings, and conduct hearings or proceedings pursuant to chapter
19 2, title 54, Idaho Code. The board may designate a member, or any other person
20 of appropriate competence, to serve as investigating officer to conduct an
21 investigation. Upon completion of an investigation, the investigating officer
22 shall file a report with the board. Unless dismissed by the board as unfounded
23 or trivial, the board may proceed with disciplinary proceedings or may return
24 the report to the investigating officer for further investigation.
25 (a) In order to protect the interests of a complainant, witness, third
26 party or defendant, the board may upon application and for good cause
27 shown, issue a protective order, consistent with chapter 3, title 9, Idaho
28 Code, prohibiting the disclosure of specific information otherwise not
29 privileged and confidential and direct that the proceedings be conducted
30 so as to implement the order.
31 (b) In carrying into effect the provisions of this chapter, the board may
32 subpoena witnesses and compel their attendance, and also may require the
33 submission of books, papers, documents or other pertinent data; may admin-
34 ister oaths; may take testimony; may cooperate with the appropriate
35 authorities in other states in investigation and enforcement concerning
36 violations of this chapter and comparable acts of other states; and may
37 receive evidence in any disciplinary matters or in any case wherever a
38 violation of the provisions of this chapter is alleged. Upon failure or
39 refusal to comply with any such order of the board, or upon failure to
40 honor its subpoena, the board may apply to the court in the district where
41 the witness resides to enforce compliance.
42 (5) To authorize by written agreement the bureau of occupational licenses
43 as agent to act in its interest.
44 (6) Any action, claim or demand to recover money damages from the board
45 or its employees which any person is legally entitled to recover as compensa-
46 tion for the negligent or otherwise wrongful act or omission of the board or
47 its employees, when acting within the course and scope of their employment,
48 shall be governed by the Idaho tort claims act, chapter 9, title 6, Idaho
49 Code. For purposes of this subsection, the term "employees" shall include spe-
50 cial assignment members of the board and other independent contractors while
51 acting within the course and scope of their board related work.
52 (7) All hearings, investigations or proceedings conducted by the board
53 shall be conducted in conformity with chapter 52, title 67, Idaho Code, and
54 rules of the board adopted pursuant thereto, and, unless otherwise requested
55 by the concerned party, be subject to disclosure according to chapter 3, title
1 9, Idaho Code.
2 SECTION 2. That Section 54-206, Idaho Code, be, and the same is hereby
3 amended to read as follows:
4 54-206. DEFINITIONS. As used in this section chapter:
5 (1) "AICPA" means the American institute of certified public accountants.
6 (2) "Applicant" means any person having the requisite qualifications who
7 makes application to the board for examination, or for initial issuance or
8 renewal or reinstatement of a license under the provisions of this chapter.
9 (3) "Attest" means providing the following financial statement services:
10 (a) Any audit or other engagement to be performed in accordance with the
11 statements on auditing standards;
12 (b) Any review of a financial statement to be performed in accordance
13 with the statements on standards for accounting and review services; and
14 (c) Any examination of prospective financial information to be performed
15 in accordance with the statements on standards for attestation engage-
17 (4) "Board" means the Idaho state board of accountancy.
18 (5) "Certificate" means that document issued by the board upon original
19 approval of licensure. The original certificate does not constitute licensure
20 and a person cannot represent himself or herself as a licensee unless a cur-
21 rent and valid annual license has been issued by the board.
22 (6) "Certified public accountant" or "CPA" means any person who holds a
23 valid, unrevoked and unsuspended license under the provisions of chapter 2,
24 title 54, Idaho Code, or an equivalent provision of the laws of another state
25 designating said person as a certified public accountant.
26 (7) "Client" means the person or entity that agrees with a licensee or
27 licensee's employer to receive any professional services with or without com-
28 pensation and shall include all affiliates and related entities in the finan-
29 cial statements of an attest or compilation engagement.
30 (8) "Compilation" means a service performed in accordance with statements
31 on standards for accounting and review services which presents, in the form of
32 historical or prospective financial statements, information that is the repre-
33 sentation of management or owners without undertaking to express any assurance
34 on the statements. The term "compilation" does not include financial state-
35 ments accompanied by the language set forth in section 54-226(3), Idaho Code,
36 (whether used by a licensee or by a person not licensed under this chapter ),
37 so long as the financial statements are not accompanied by any other language
38 of assurance or disclaimer.
39 (9) "Financial statements" means a presentation of historical or prospec-
40 tive financial data, which may include accompanying notes, intended to commu-
41 nicate an entity's economic resources or obligations at a point in time, or
42 the changes therein for a period of time, in accordance with a comprehensive
43 basis of accounting.
44 (10) "Firm" means a proprietorship, partnership, professional corporation,
45 professional limited liability company, or any other form of professional
46 organization permitted by Idaho law, registered under the requirements of sec-
47 tion 54-214, Idaho Code.
48 (11) "Good moral character" means lack of a history of dishonest dealings
49 or a felonious act.
50 (12) "License" means that authorization issued by the board upon original
51 approval and on an annual basis permitting a qualified person to practice as a
52 certified public accountant or licensed public accountant in the state of
1 (13) "Licensed public accountant" or "LPA" means any person who holds a
2 valid, unrevoked and unsuspended license under the provisions of chapter 2,
3 title 54, Idaho Code, designating said person as a licensed public accoun-
5 (14) "Licensee" means the holder of a current valid license.
6 (15) "Member" means a person who has been admitted to membership in a firm
7 which is organized as a limited liability company.
8 (16) "Peer review" means a board approved study, appraisal or review of
9 one (1) or more aspects of the professional work of a licensee or firm that
10 performs attest services or issues compilation reports, by a person or persons
11 licensed under this chapter or by another state and who are independent of the
12 licensee or firm being reviewed.
13 (17) "Permit" means a permit to practice as a firm issued under corre-
14 sponding provisions of the laws of other states.
15 (18) "Person" means any natural living person.
16 (19) "Professional services" means services arising out of or related to
17 the specialized knowledge or skills associated with certified public accoun-
18 tants or licensed public accountants.
19 (20) "Report," when used with reference to financial statements, means an
20 opinion or other form of language that states or implies assurance as to the
21 reliability of any financial statements and that also includes or is accompa-
22 nied by any statement or implication that the person or firm issuing it has
23 special knowledge or competence in accounting or auditing. Such a statement or
24 implication of special knowledge or competence may arise from use by the
25 issuer of the report of names or titles indicating that the person or firm is
26 an accountant or auditor, or from the language of the report itself. The term
27 "report" includes any form of language which disclaims an opinion when such
28 form of language is conventionally understood to imply any positive assurance
29 as to the reliability of the financial statements referred to or special com-
30 petence on the part of the person or firm issuing such language; and it
31 includes any other form of language that is conventionally understood to imply
32 such assurance or special knowledge or competence.
33 (21) "State" means any state of the United States, the District of Colum-
34 bia, Puerto Rico, the U.S. Virgin Islands, Commonwealth of the Northern
35 Mariana Islands and Guam; except that "this state" means the state of Idaho.
36 (22) "Substantial equivalency" or "substantially equivalent" means a
37 determination by the board that the education, examination and experience
38 requirements contained in the statutes and administrative rules of another
39 jurisdiction are comparable to or exceed the education, examination and expe-
40 rience requirements for CPAs contained in this chapter or that an individual
41 licensee's education, examination and experience qualifications are comparable
42 to or exceed the education, examination and experience requirements for CPAs
43 contained in this chapter.
44 SECTION 3. That Section 54-208, Idaho Code, be, and the same is hereby
45 amended to read as follows:
46 54-208. EXAMINATION -- EDUCATION -- QUALIFICATIONS. (1) An applicant for
47 admission to examination as a certified public accountant shall:
48 (a) Be eighteen (18) years of age or older ,;
49 (b) Be of good moral character ,;
50 (c) Be a resident, have been a resident, or intend to immediately become
51 a resident of the state of Idaho ,;
52 (d) Be approved by the board for admission to the examination ,; and
53 (e) Provide satisfactory evidence in the form of an official transcript
1 received directly from the school registrar indicating successful comple-
2 tion of a baccalaureate degree or its equivalent, the required credits and
3 courses to be prescribed by the rules of the board. Applicants who will
4 complete the educational requirements within ninety (90) days of the exam-
5 ination may be allowed to sit for the examination provided that prior to
6 the release of examination grades satisfactory evidence is submitted veri-
7 fying that the required education was completed within ninety (90) days of
8 the examination.
9 (2) The examination required to be passed as a condition to granting a
10 certificate shall be held at least twice each year, and shall test the
11 applicant's knowledge of the subjects of accounting and auditing, and such
12 other related subjects as the board may specify by rule, including, but not
13 limited to, business law and taxation. The time for holding such examination
14 shall be determined by the board and may be changed from time to time. The
15 board shall prescribe by rule the methods of applying for and conducting the
16 examination, including methods for grading and determining a passing grade
17 required of an applicant for a certificate; provided however, that the board
18 shall endeavor to assure that the examination itself, grading of the examina-
19 tion, and the passing grades, are uniform with those of other states. The
20 board may make use of all or any part of the uniform certified public accoun-
21 tant examination and advisory grading service of the AICPA and may contract
22 with third parties to perform such administrative services with respect to the
23 examination as it deems appropriate to assist it in performing its duties
25 (3) The board may charge, or provide for a third party administering the
26 examination to charge, each applicant a fee, in an amount prescribed by the
27 board by rule.
28 (4) None of the education requirements specified in this section shall
29 apply to an applicant who is a licensed public accountant pursuant to this
31 SECTION 4. That Section 54-209, Idaho Code, be, and the same is hereby
32 amended to read as follows:
33 54-209. EXPERIENCE. An applicant of good moral character who successfully
34 passes the examination, with standards no less than those prescribed by the
35 board's rules for examination of candidates in Idaho, and who fulfills the
36 requirements of section 54-207, Idaho Code, shall receive a license as a cer-
37 tified public accountant if the applicant has completed one (1) year of expe-
38 rience. This experience shall include providing any type of service or advice
39 involving the use of accounting, attest, compilation, management advisory,
40 financial advisory, tax or consulting skills, -- all of which have been veri-
41 fied by an active licensee, meeting requirements prescribed by the board by
42 rule. This experience may be gained through employment in government, indus-
43 try, academia or public practice.
44 SECTION 5. That Section 54-210, Idaho Code, be, and the same is hereby
45 amended to read as follows:
46 54-210. RECIPROCITY -- TRANSFER OF EXAMINATION GRADES -- FOREIGN RECI-
47 PROCITY -- QUALIFICATIONS. (1) A person whose certificate and license have
48 been granted by another state, whose principal place of business is located in
49 this state, shall obtain a license by reciprocity from the board before pro-
50 viding professional services in this state.
51 (2) (a) An applicant for certificate and license by reciprocity to prac-
1 tice as a certified public accountant in Idaho must:
2 (i) Be eighteen (18) years of age or older;
3 (ii) Be of good moral character;
4 (iii) Have obtained the education and passed the uniform CPA examina-
5 tion with standards no less than those required in Idaho; and
6 (iv) Have completed the necessary experience, continuing profes-
7 sional education, and board approved ethics examination required for
8 issuance of a license in Idaho and hold a current license in good
9 standing in another licensing jurisdiction.
10 (b) The requirements of subsection (2)(a) of this section relating to
11 education, Idaho standards relating to passage of the uniform CPA examina-
12 tion, experience, continuing professional education and ethics examination
13 shall be waived if the applicant has been licensed for no less than four
14 (4) years ' experience as determined by the board, provided that the expe-
15 rience or its equivalent was obtained after original licensure as a certi-
16 fied public accountant and within the ten (10) years immediately preceding
17 the reciprocity application.
18 (3) (a) A person holding an inactive or retired certificate and license
19 granted by another state, whose principal place of business is located in
20 this state, may apply for an equivalent license by reciprocity from the
21 board, provided the applicant must:
22 (i) Meet the requirements for an inactive license as set forth in
23 section 54-211(1)(c), Idaho Code, or the requirements for a retired
24 license as set forth in section 54-211(1)(d), Idaho Code;
25 (ii) Be of good moral character;
26 (iii) Have obtained the education and passed the uniform CPA examina-
27 tion with standards no less than those required in Idaho; and
28 (iv) Have completed the necessary experience and board approved eth-
29 ics examination required for issuance of a license in Idaho.
30 (b) The requirements of subsection (3)(a) of this section relating to
31 education, Idaho standards relating to passage of the uniform CPA examina-
32 tion, experience and ethics examination shall be waived if the applicant
33 has been licensed for no less than four (4) years ' experience as deter-
34 mined by the board, provided that the experience or its equivalent was
35 obtained after original licensure as a certified public accountant and
36 within the ten (10) years immediately preceding the reciprocity applica-
38 (4) An applicant for certificate and license to practice as a certified
39 public accountant in Idaho by transfer of examination grades from another
40 licensing jurisdiction must:
41 (a) Be eighteen (18) years of age or older;
42 (b) Be of good moral character;
43 (c) Have obtained the necessary education and have passed the uniform CPA
44 examination with standards no less than those prescribed by the board's
45 rules for examination candidates in Idaho; and
46 (d) Possess experience qualifications as required under section 54-209,
47 Idaho Code, and complete a board approved ethics examination required for
48 issuance of a license in Idaho.
49 (5) The board shall issue a certificate and license to a holder of a sub-
50 stantially equivalent designation issued by a foreign country, provided that:
51 (a) The foreign authority which granted the designation makes similar
52 provision to allow a person who holds a valid certificate and license
53 issued by this state to obtain such foreign authority's comparable desig-
54 nation; and
55 (b) The designation:
1 (i) Was duly issued by an authority of a foreign country which reg-
2 ulates the practice of public accountancy and has not expired or been
3 revoked or suspended;
4 (ii) Entitles the holder to issue reports upon financial statements;
6 (iii) Was issued upon the basis of substantially equivalent educa-
7 tional, examination and experience requirements established by the
8 foreign authority or by law; and
9 (c) The applicant:
10 (i) Received the designation, based on educational and examination
11 standards substantially equivalent to those in effect in this state,
12 at the time the foreign designation was granted;
13 (ii) Completed an experience requirement, substantially equivalent
14 to the requirements set out in this chapter, in the jurisdiction
15 which granted the foreign designation or has completed four (4) years
16 of professional experience in this state; or meets equivalent
17 requirements prescribed by the board by rule, within the ten (10)
18 years immediately preceding the application;
19 (iii) Passed a uniform qualifying examination in national standards
20 acceptable to the board; and
21 (iv) Is of good moral character.
22 SECTION 6. That Section 54-211, Idaho Code, be, and the same is hereby
23 amended to read as follows:
24 54-211. LICENSES -- LICENSING PERIOD -- NONRENEWAL -- REINSTATEMENT --
25 INACTIVE LICENSES -- RETIREMENT -- FEES. (1) The board shall issue initial
26 certificates and licenses, and renewal and reinstatement licenses to practice
27 as a certified public accountant, and renewal and reinstatement licenses to
28 practice as a licensed public accountant to persons who have qualified there-
29 for in accordance with the provisions of this chapter and the rules of the
30 board. A certificate and license, once issued, shall continue in effect so
31 long as the holder thereof complies with the provisions of this chapter and
32 the rules and orders of the board.
33 (a) Initial. The board shall collect an initial license fee upon board
34 approval of an initial license to practice as a certified public accoun-
35 tant in the state of Idaho as set forth in section 54-212, Idaho Code, and
36 as prescribed by the rules of the board. Those individuals meeting the
37 requirements for initial licensure in Idaho, pursuant to the provisions of
38 this chapter and the rules of the board, shall be issued a license effec-
39 tive for no more than twelve (12) months. The license shall then be sub-
40 ject to annual renewal.
41 (b) Renewal. The board shall collect an annual license fee from all
42 licensees each year as set forth in section 54-212, Idaho Code, and as
43 prescribed by the rules of the board. Those persons meeting the require-
44 ments of this subsection for license renewal shall be issued a license
45 effective for a period of one (1) year after its issuance. Requirements
47 (i) Good moral character;
48 (ii) Completion of continuing professional education as specified by
49 the board's rules;
50 (iii) Identification, in the renewal application, of the firm with
51 which the licensee is affiliated; and
52 (iv) Where applicable, verification of satisfactory completion of a
53 peer review program by the firm with which the licensee is affili-
1 ated, pursuant to section 54-214, Idaho Code, and the rules pre-
2 scribed by the board. Any licensee who issues compilation reports for
3 the public other than through a firm must undergo no more frequently
4 than once every three (3) years, a peer review conducted in accor-
5 dance with rules prescribed by the board, and such review shall
6 include verification that such licensee has met the competency
7 requirements set out in professional standards for such service.
8 (c) Inactive status. Any licensee in current compliance with the provi-
9 sions of this chapter who chooses not to perform or offer to perform for
10 the public one (1) or more kinds of attest or compilation services may
11 apply to place his or her license in inactive status. The annual renewal
12 fee for inactive status shall be as set forth in section 54-212, Idaho
13 Code, and as prescribed by the rules of the board. Licensees with inactive
14 status must place the word "inactive" adjacent to their CPA or LPA title
15 on any business card, letterhead or any other document or device when
16 using the title, with the exception of their certificate on which their
17 title appears.
18 (d) Retired. After a person reaches the age of sixty (60) fifty-five (55)
19 years, or in the event of a disability preventing continued practice, the
20 certificate of a certified public accountant or licensed public accoun-
21 tant, upon application to the board by the holder, may be placed by the
22 board in retired status. Retired status shall allow the holder to retain
23 the wall certificate and remain on the board's mailing list. The annual
24 renewal fee for retired status shall be as set forth in section 54-212,
25 Idaho Code, and as prescribed by the rules of the board. Licensees with
26 retired status must place the word "retired" adjacent to their CPA or LPA
27 title on any business card, letterhead or any other document or device
28 when using the title, with the exception of their certificate on which
29 their title appears. An individual who performs or offers to perform for
30 the public attest or compilation services shall not qualify for retired
32 (e) Nonrenewal. A licensee may place the license into lapsed status as
33 prescribed by the rules of the board rather than renew the license. Any
34 license not renewed or placed into lapsed status within thirty (30) days
35 after the expiration of the previous license shall be automatically placed
36 into lapsed status.
37 (f) Reinstatement. Any certificate and license placed in lapsed status
38 may be reinstated upon completion of an application supplied by the board
39 along with payment of a reinstatement fee as set forth in section 54-212,
40 Idaho Code, and as prescribed by the rules of the board. In addition, the
41 board shall require the applicant to meet the qualifications of subsection
42 (b) of this section. Reinstatement following involuntary suspension shall
43 be governed by the terms of the board's order of involuntary suspension.
44 (g) Reentry. A license in inactive or retired status may reenter active
45 status upon completion of an application supplied by the board along with
46 payment of a reentry fee as prescribed by the rules of the board. In addi-
47 tion, the board shall require the applicant to meet the qualifications set
48 forth in subsection (1)(b) of this section.
49 (2) Applicants for initial issuance or reinstatement of licenses under
50 this section shall in their application list all states in which they have
51 applied for or hold a license and list any past disciplinary action against or
52 denial, revocation or suspension of a certificate, license or permit.
53 (3) Applicants and licensees shall notify the board in writing, within
54 thirty (30) days after its occurrence of:
55 (a) Any charges or convictions of, or guilty pleas to, a felony; or
1 (b) Any disciplinary action against or the denial, restriction, revoca-
2 tion or suspension of a certificate, license or permit by another state or
3 by any federal agency.
4 SECTION 7. That Section 54-212, Idaho Code, be, and the same is hereby
5 amended to read as follows:
6 54-212. GENERAL FEES. The board, as prescribed by its rules, may charge
7 an amount not to exceed:
8 (1) One thousand dollars ($1,000) for examination.
9 (2) Three hundred dollars ($300) for licensure application or license
11 (3) Twenty-five dollars ($25.00) for any certificate, original or
12 replacement, to be issued as herein provided.
13 (4) Fifty dollars ($50.00) for administrative services, including, but
14 not limited to, mailing lists and release of information to other boards for
15 purposes of licensure.
16 (5) One hundred dollars ($100) for retired or inactive status licenses.
17 (6) Five hundred dollars ($500) for license reinstatement.
18 (7) Three hundred dollars ($300) for late fees, including late filing of
19 the annual license renewal.
20 (8) Three hundred dollars ($300) for late fees, including late filing of
21 the continuing professional education report.
22 (9) Two hundred dollars ($200) for firm registration.
23 (10) Fifty dollars ($50.00) for notification of intent to enter the state
24 pursuant to section 54-227, Idaho Code.
25 SECTION 8. That Section 54-213, Idaho Code, be, and the same is hereby
26 amended to read as follows:
27 54-213. GRANDFATHER CLAUSE. Individuals who, on July 1, 200 28, hold cer-
28 tified public accountant and licensed public accountant licenses heretofore
29 issued under the laws of this state, shall, for all purposes, be considered
30 licensees under this chapter and subject to the provisions thereof.
31 SECTION 9. That Section 54-214, Idaho Code, be, and the same is hereby
32 amended to read as follows:
33 54-214. FIRM REGISTRATION -- PEER REVIEW. (1) The board shall register
34 firms that make application and demonstrate their qualifications therefor in
35 accordance with the following subsections of this section or to firms origi-
36 nally licensed in another state that establish an office in this state. A firm
37 must be registered with the board in order to provide attest services or com-
38 pilation reports or in order to use the titles "CPAs," "CPA firm," "LPAs" or
39 "LPA firm." Firms must register with the board annually on such form and
40 between such dates as the board may specify by rule. The board may charge a
41 fee for each registration for initial issuance or renewal of a registration
42 under this section as set forth in section 54-212, Idaho Code, and as pre-
43 scribed by the rules of the board.
44 (2) An applicant for initial registration or renewal of a registration to
45 practice under this section shall demonstrate that:
46 (a) Notwithstanding any other provision of law, a simple majority of the
47 beneficial ownership of the firm belongs to holders of a certificate who
48 are licensed in some state, and such partners, officers, shareholders,
49 members or managers, whose principal place of business is in this state,
1 and who perform professional services in this state, hold a valid certifi-
2 cate and license issued by this state. Although a firm may include
3 nonlicensee owners the firm and its ownership must comply with rules pro-
4 mulgated by the board.
5 (b) Any firm may include nonlicensee owners provided that:
6 (i) The firm designates a licensee of this state, who is responsi-
7 ble for the proper registration of the firm and identifies that indi-
8 vidual to the board.
9 (ii) All nonlicensees are active individual participants in the firm
10 or affiliated entities.
11 (iii) The firm complies with such other requirements as the board may
12 impose by rule.
13 (c) Any licensee who is responsible for supervising attest services or
14 compilation reports or who signs or authorizes someone to sign a report on
15 financial statements on behalf of the firm, shall meet the competency
16 requirements of the professional standards for such services.
17 (3) Firms registered to practice under this section shall be required to
18 register each office of the firm within this state with the board and to show
19 that all attest and compilation reports rendered in this state are under the
20 charge of a person holding a valid certificate and license issued by this
21 state or some other state.
22 (4) A firm registering under this section shall list all states in which
23 it has applied for or holds permits as a firm and list any past denial, revo-
24 cation or suspension of a permit by any other state. Each firm registered
25 under this section shall notify the board in writing, within thirty (30) days
26 following any change in the identities of partners, officers, shareholders or
27 members whose principal place of business is in this state, any change in the
28 number or location of offices within this state, any change in the identity of
29 the persons in charge of such offices, and any issuance, denial, revocation or
30 suspension of a permit by any other state.
31 (5) Firms which fall out of compliance with the provisions of this sec-
32 tion due to changes in firm ownership or personnel, after registration, shall
33 take corrective action to bring the firm back into compliance as quickly as
34 possible. The board may grant a reasonable period of time for a firm to take
35 such corrective action. Failure to bring the firm back into compliance within
36 a reasonable period as defined by the board may result in penalties as pre-
37 scribed by board rule.
38 (6) As a condition of registration renewal under this section, the board,
39 by rule, shall require firms to comply with peer review requirements as speci-
40 fied by rule. Such review shall include a verification that individuals in the
41 firm who are responsible for supervising attest and compilation reports and
42 who sign or authorize someone to sign a report on financial statements on the
43 behalf of the firm meet the competency requirements set out in the profes-
44 sional standards for such services. The rules concerning peer review shall
46 (a) Peer reviews to be subject to oversight by an oversight body estab-
47 lished by board rule which will periodically report to the board on the
48 effectiveness of the review program under its charge, and provide to the
49 board a listing of firms that have participated in a peer review program
50 that is satisfactory to the board; and
51 (b) The peer review processes to be operated and documents maintained in
52 a manner designed to preserve confidentiality, and that neither the board
53 nor any third party, other than the oversight body, shall have access to
54 documents furnished or generated in the course of the review confidential-
55 ity of client records involved in the peer review process shall be pre-
1 served in accordance with the accountancy rules.
2 (7) Information discovered solely as a result of a firm's peer review
3 shall not be grounds for suspension or revocation of a license.
4 SECTION 10. That Section 54-227, Idaho Code, be, and the same is hereby
5 amended to read as follows:
6 54-227. SUBSTANTIAL EQUIVALENCY. (1) A person whose principal place of
7 business is not in this state and who has an active certificate and license as
8 a certified public accountant from any state which the board has determined to
9 be substantially equivalent to this chapter shall be presumed to have qualifi-
10 cations substantially equivalent to this state's requirements and shall have
11 all the privileges of licensees of this state without the need to obtain a
12 license. However, such persons shall notify the board of their intent to enter
13 the state under this provision. The board may charge a fee for such notifica-
14 tion as set forth in section 54-212, Idaho Code, and as prescribed by rules of
15 the board.
16 (2) A person whose principal place of business is not in this state and
17 who has an active certificate and license as a certified public accountant
18 from any state which the board has not determined to be substantially equiva-
19 lent to this chapter shall be presumed to have qualifications substantially
20 equivalent to this state's requirements and shall have all the privileges of
21 licensees of this state without the need to obtain a license only if such per-
22 son demonstrates that his or her qualifications are substantially equivalent
23 to the licensure requirements of this chapter. The requirement to demonstrate
24 substantially equivalent qualifications shall be waived if the applicant has
25 been licensed for no less than four (4) years ' experience as determined by the
26 board, provided that the experience or its equivalent was obtained after orig-
27 inal licensure as a certified public accountant and within the previous ten
28 (10) years. immediately preceding the practice privilege application. Such
29 persons shall notify the board of their intent to enter the state under this
30 provision in the manner provided by rules of the board. The board may charge a
31 fee for such notification as set forth in section 54-212, Idaho Code, and as
32 prescribed by rules of the board.
33 (3) Licensees of other states exercising the privilege afforded under
34 this section hereby consent, as a condition of the grant of this privilege:
35 (a) To the personal and subject matter jurisdiction and disciplinary
36 authority of the board;
37 (b) To comply with this chapter and the board's rules; and
38 (c) To the appointment of the state boards which issued their licenses as
39 their agents upon whom process may be served in any action or proceeding
40 by this state's board against such licensees.
41 (4) A licensee of this state offering or rendering services or using the
42 CPA title in another state shall be subject to disciplinary action in this
43 state for an act committed in another state for which the licensee would be
44 subject to discipline for an act committed in another state. Notwithstanding
45 the board's enforcement authority granted by this chapter, the board shall
46 investigate any complaint made by the board of accountancy of another state.
STATEMENT OF PURPOSE
This legislation makes numerous technical revisions to the
Accountancy Act. Most are minor and relatively "non-substantive."
Two are substantive changes to bring the statutory regulation of
accounting into line with current practices. The first recognizes
that accounting may occur anywhere (inside Idaho or out) and allows
persons licensed in another state to provide accounting services in
Idaho without obtaining approval of the Idaho State Board of
Accountancy as long as their principal place of business is not
located in Idaho. They remain subject to the regulatory authority
of the Board of Accountancy. The second substantive change
recognizes that information discovered in a peer review can be a
basis for disciplinary action.
This legislation will have no effect on the general fund. It
removes the need of the Board of Accountancy to keep records on
accountants from other states providing services to people in Idaho
and makes enforcement of licensing requirements more efficient.
This should save dedicated funds that are collected from accounting
CONTACT: Melissa Nelson, Idaho Society of CPAs, 344-6261
Barbara Porter, State Board of Accountancy, 334-2490
Ken McClure, 388-1200
STATEMENT OF PURPOSE/FISCAL NOTE H 379