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H0379...........................................................by BUSINESS
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,
Wood(27), Wood(35)
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
Effective: 07/01/08
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature Second Regular Session - 2008IN 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 39 clients; 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 2 1 under the provisions of this chapter; 2 (h) Rules on substantial equivalency to implement section 54-227, Idaho 3 Code; 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 3 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 thissectionchapter: 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- 16 ments. 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 53 Idaho. 4 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- 4 tant. 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 5 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 will4complete the educational requirements within ninety (90) days of the exam-5ination may be allowed to sit for the examination provided that prior to6the release of examination grades satisfactory evidence is submitted veri-7fying that the required education was completed within ninety (90) days of8the examination.9 (2) The examination required to be passed as a condition to granting a 10 certificateshall be held at least twice each year, andshall 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 24 hereunder. 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 30 chapter. 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- 6 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-15rience or its equivalent was obtained after original licensureas a certi- 16 fied public accountantandwithin 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-34mined by the board, provided that the experience or its equivalent was35obtained after original licensureas a certified public accountantand36 within the ten (10) years immediately preceding the reciprocity applica- 37 tion. 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: 7 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; 5 and 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 46 include: 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- 8 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 ofsixty (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 31 status. 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 9 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 10 renewal. 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 state24pursuant 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, 20028, 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, 10 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 45 require: 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) Thepeer review processes to be operated and documents maintained in52a manner designed to preserve confidentiality, and that neither the board53nor any third party, other than the oversight body, shall have access to54documents furnished or generated in the course of the reviewconfidential- 55 ity of client records involved in the peer review process shall be pre- 11 1 served in accordance with the accountancy rules. 2(7) Information discovered solely as a result of a firm's peer review3shall 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 enter13the state under this provision. The board may charge a fee for such notifica-14tion as set forth in section 54-212, Idaho Code, and as prescribed by rules of15the 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 the26board, provided that the experience or its equivalent was obtained after orig-27inal licensureas a certified public accountantandwithin the previous ten 28 (10) years.immediately preceding the practice privilege application. Such29persons shall notify the board of their intent to enter the state under this30provision in the manner provided by rules of the board. The board may charge a31fee for such notification as set forth in section 54-212, Idaho Code, and as32prescribed 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
RS 17573
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.
FISCAL NOTE
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
license fees.
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