Bill 3287

                    Current Status

Bill Number:               3287
Ratification Number:       567
Act Number                 457
Introducing Body:          House
Subject:                   Relating to membership in the South
                           Carolina Board of Accounting

(A457, R567, H3287)

AN ACT TO AMEND SECTION 40-1-80, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO MEMBERSHIP IN THE SOUTH CAROLINA BOARD OF ACCOUNTING, SO AS TO CHANGE THE COMPOSITION OF THE BOARD; TO AMEND SECTION 40-1-190, AS AMENDED, RELATING TO THE CONDUCTING OF EXAMINATIONS BY THE BOARD OF ACCOUNTING, SO AS TO REQUIRE THE BOARD TO ADVERTISE THE DATES FOR EXAMINATION AT LEAST EIGHT WEEKS INSTEAD OF SIX WEEKS PRIOR TO THE DATE SET, TO ALLOW EXPERIENCE WORKING UNDER THE SUPERVISION OF A PUBLIC ACCOUNTANT TO BE ACCEPTED IN COMPLYING WITH THE REQUIREMENTS OF THE BOARD, TO INCREASE FROM THREE TO FIVE WEEKS THE TIME PRIOR TO THE EXAMINATION FOR SUBMITTING THE APPLICATION AND FEE TO THE BOARD; TO AMEND SECTION 40-1-380, AS AMENDED, RELATING TO CONTINUING EDUCATION REQUIREMENTS FOR CERTIFIED PUBLIC ACCOUNTANTS AND PUBLIC ACCOUNTANT, SO AS TO PROVIDE THAT THE BOARD SHALL PROMULGATE REGULATIONS FOR IMPLEMENTING REQUIREMENTS FOR CONTINUING EDUCATION WHICH MUST BE MET BY CERTIFIED PUBLIC ACCOUNTANTS, PUBLIC ACCOUNTANTS AND ACCOUNTING PRACTITIONERS; AND TO REPEAL SECTIONS 40-1-90 AND 40-1-610, RELATING TO THE REPLACEMENT OF PUBLIC ACCOUNTANT MEMBERS BY MEMBERS OF THE PUBLIC NOT ENGAGED IN ACCOUNTING AND LICENSING OF ACCOUNTING PRACTITIONERS.

Be it enacted by the General Assembly of the State of South Carolina:

Composition of board

Section 1. Section 40-1-80 of the 1976 Code is amended to read:

"Section 40-1-80. The Board shall consist of nine members, five of whom shall be licensed certified public accountants, two of whom shall be licensed public accountants or licensed accounting practitioners, and two of whom shall be public members not engaged in the practice of public accounting. Members shall be appointed by the Governor for terms of three years and until their successors are appointed and qualify. Vacancies may be filled by the Governor for unexpired terms. The Governor shall remove any member of the Board for neglect of duty or other just cause."

Examination

Section 2. Section 40-1-190 of the 1976 Code, as last amended by Act 436 of 1980, is further amended in the second paragraph, line two, by striking "six" and inserting "eight"; in the fourth paragraph, lines five, six, seven and eight, by striking "The experience required shall be two years of accounting experience under the supervision and review of a certified public accountant licensed to practice, whether in public, governmental or private employment." and inserting "The experience required shall be two years of accounting experience under the supervision and review of a certified public accountant or public accountant licensed to practice, whether in public, governmental or private employment."; and by striking the last paragraph and inserting:

"An application for examination or reexamination as prescribed by the Board shall be submitted and the applicable fee paid at least five weeks prior to the date of the examination."

When amended the section shall read:

"Section 40-1-190. The examination described in Section 40-1-170 and the special examination referred to in Section 40-1-180 shall be held by the Board and shall take place as often as the Board shall determine to be desirable but the examination described in Section 40-1-170 shall be held at least once each year.

The Board shall advertise the dates of the examinations at least eight weeks prior to the date set in such newspapers as shall provide adequate statewide notice.

The Board may make such use of all or any part of the uniform certified public accountants' examination or advisory grading service as it deems appropriate to assist it in performing its duties.

A candidate for the certificate of certified public accountant who has successfully completed the examination required under Section 40-1-170 shall have no status as a certified public accountant unless and until he has the requisite experience and has received his certificate as a certified public accountant. The experience required shall be two years of accounting experience under the supervision and review of a certified public accountant or public accountant licensed to practice, whether in public, governmental or private employment. Such experience shall include experience, satisfactory to the Board, in applying generally accepted auditing standards to financial statements prepared in accordance with generally accepted accounting principles.

The Board may by regulation provide for granting a credit to a candidate for satisfactory completion of a written examination in any one or more of the subjects provided in Section 40-1-170 given by the licensing authority in any other state of the United States provided that when he took such examination he was not a resident of this State. Such regulation shall include such requirements as the Board shall determine to be appropriate in order that any examination approved as a basis for any such credit shall, in the judgment of the Board, be at least as thorough as that included in the most recent examination given by the Board at the time of the granting of such credit.

The Board may by regulation prescribe the terms and conditions under which a candidate who passes the examination in one or more of the subjects provided by Section 40-1-170 may be reexamined in only the remaining subjects, with credit for the subjects previously passed. It may also provide by regulation for a reasonable waiting period for a candidate's reexamination in a subject he has failed.

During the four-year period immediately following July 1, 1980, the education requirements shall be a baccalaureate degree conferred by a college or university recognized by the Board, or qualifications which the Board determines to be substantially the equivalent of the foregoing.

After the expiration of four years from July 1, 1980, educational requirements shall be a baccalaureate degree from a college or university recognized by the Board including a minimum of twenty-four hours or the equivalent in accounting hours.

The Board shall charge each candidate a fee, to be determined by the Board, not in excess of one hundred dollars for the initial examination provided for in Section 40-1-170 and not in excess of one hundred dollars for any special examination for a waiver of the educational requirements.

Fees for reexamination provided by this section shall also be charged by the Board in amounts determined by it but not in excess of forty dollars for each subject in which the candidate is reexamined.

An application for examination or reexamination as prescribed by the Board shall be submitted and the applicable fee paid at least five weeks prior to the date of the examination."

Board shall adopt regulations

Section 3. Section 40-1-380 of the 1976 Code, as added by Act 436 of 1980, is amended to read:

"Section 40-1-380. The Board shall adopt regulations implementing the requirements and reporting for continuing education which must be met by certified public accountants, public accountants, and accounting practitioners. The Board shall require no less than sixty hours of continuing educational activities in any two-year period. The Board shall require compliance with the regulations as a prerequisite to the issuance of a current license to practice as a certified public accountant, public accountant, or accounting practitioner. The requirements may be waived by the Board in individual cases for good cause.

In establishing such regulations, the Board shall recognize the following as meeting the continuing educational requirements:

(a) Professional development programs of national and state accounting organizations. Only class hours or the equivalent, and not student hours devoted to preparation, are counted.

(b) Technical sessions at meetings of national and state accounting organizations and their chapters.

(c) Courses offered by colleges, universities, technical education centers and other appropriate educational institutions, including credit and noncredit courses. Each semester-hour credit shall equal fifteen hours toward the requirement; each quarter-hour credit shall equal ten hours. In noncredit courses, each classroom hour shall equal one qualifying hour.

(d) Any other activities, methods, procedures, devices and programs which, in the opinion of the Board, contribute directly to the professional competence of the licensee."

Repeal

Section 4. Sections 40-1-90 and 40-1-610 of the 1976 Code are repealed.

Time effective

Section 5. This act shall take effect upon the approval by the Governor.