S*747 Session 110 (1993-1994)
S*0747(Rat #0187, Act #0136) General Bill, By Senate Judiciary
A Bill to amend Section 40-1-60, Code of Laws of South Carolina, 1976,
relating to the licensing of professional associations, so as to provide that
persons licensed as accountants may operate in any form allowed by law and
define professional association; to amend Section 40-1-190, relating to the
examination and education requirements of certified public accountants, so as
to include five years' experience teaching accounting in a college or
university recognized by the Board as one of the experience requirements and
delete the details for the educational requirement; to amend Section 40-1-240,
as amended,relating to the waiver of examination for a person certified in
another state as a certified public accountant, so as to provide for foreign
reciprocity when such jurisdictions have substantially equivalent requirements
as South Carolina;to amend Section 40-1-270, relating to the requirements for
accountants and accounting practitioners, so as to provide that annually or on
or before the last day of February a certificate of compliance with the
continuing education requirements must be filed with the Board and delete the
biennial continuing education requirements;to amend Section 40-1-290, relating
to the revocation or suspension of a license or permit, so as to provide
specific violations and delete general violations for which the Board may
revoke or suspend any certificate of a certified public accountant or a
license of a public accountant; and to amend Section 40-1-570, relating to the
licensing of professional associations, so as to provide specific violations
and delete general violations for which the Board may revoke or suspend any
license or permit of an accounting practitioner.-amended title
04/28/93 Senate Introduced, read first time, placed on calendar
without reference SJ-9
04/29/93 Senate Read second time SJ-28
04/29/93 Senate Unanimous consent for third reading on next
legislative day SJ-28
04/30/93 Senate Read third time and sent to House SJ-5
05/04/93 House Introduced and read first time HJ-13
05/04/93 House Referred to Committee on Labor, Commerce and
Industry HJ-13
05/26/93 House Committee report: Favorable Labor, Commerce and
Industry HJ-11
06/01/93 House Read second time HJ-56
06/02/93 House Read third time and enrolled HJ-17
06/10/93 Ratified R 187
06/14/93 Signed By Governor
06/14/93 Effective date 06/14/93
07/19/93 Copies available
(A136, R187, S747)
AN ACT TO AMEND SECTION 40-1-60, CODE OF LAWS OF
SOUTH CAROLINA, 1976, RELATING TO THE LICENSING OF
PROFESSIONAL ASSOCIATIONS, SO AS TO PROVIDE THAT
PERSONS LICENSED AS ACCOUNTANTS MAY OPERATE IN ANY
FORM ALLOWED BY LAW AND DEFINE PROFESSIONAL
ASSOCIATION; TO AMEND SECTION 40-1-190, RELATING TO THE
EXAMINATION AND EDUCATION REQUIREMENTS OF CERTIFIED
PUBLIC ACCOUNTANTS, SO AS TO INCLUDE FIVE YEARS'
EXPERIENCE TEACHING ACCOUNTING IN A COLLEGE OR
UNIVERSITY RECOGNIZED BY THE BOARD AS ONE OF THE
EXPERIENCE REQUIREMENTS AND DELETE THE DETAILS FOR
THE EDUCATIONAL REQUIREMENT; TO AMEND SECTION
40-1-240, AS AMENDED, RELATING TO THE WAIVER OF
EXAMINATION FOR A PERSON CERTIFIED IN ANOTHER STATE
AS A CERTIFIED PUBLIC ACCOUNTANT, SO AS TO PROVIDE FOR
FOREIGN RECIPROCITY WHEN SUCH JURISDICTIONS HAVE
SUBSTANTIALLY EQUIVALENT REQUIREMENTS AS SOUTH
CAROLINA; TO AMEND SECTION 40-1-270, RELATING TO THE
REQUIREMENTS FOR ACCOUNTANTS AND ACCOUNTING
PRACTITIONERS, SO AS TO PROVIDE THAT ANNUALLY OR ON
OR BEFORE THE LAST DAY OF FEBRUARY A CERTIFICATE OF
COMPLIANCE WITH THE CONTINUING EDUCATION
REQUIREMENTS MUST BE FILED WITH THE BOARD AND
DELETE THE BIENNIAL CONTINUING EDUCATION
REQUIREMENTS; TO AMEND SECTION 40-1-290, RELATING TO
THE REVOCATION OR SUSPENSION OF A LICENSE OR PERMIT,
SO AS TO PROVIDE SPECIFIC VIOLATIONS AND DELETE
GENERAL VIOLATIONS FOR WHICH THE BOARD MAY REVOKE
OR SUSPEND ANY CERTIFICATE OF A CERTIFIED PUBLIC
ACCOUNTANT OR A LICENSE OF A PUBLIC ACCOUNTANT; AND
TO AMEND SECTION 40-1-570, RELATING TO THE LICENSING OF
PROFESSIONAL ASSOCIATIONS, SO AS TO PROVIDE SPECIFIC
VIOLATIONS AND DELETE GENERAL VIOLATIONS FOR WHICH
THE BOARD MAY REVOKE OR SUSPEND ANY LICENSE OR
PERMIT OF AN ACCOUNTING PRACTITIONER.
Be it enacted by the General Assembly of the State of South Carolina:
Operation of licensed accountants
SECTION 1. Section 40-1-60 of the 1976 Code is amended to read:
"Section 40-1-60. Professional associations may be licensed and
operate as certified public accountants, public accountants, and accounting
practitioners and shall be governed by the provisions of this chapter and
any provision applying to partnerships in such chapter requiring certain
qualifications or requirements of a partner or partners shall apply to a
member or members of the professional association. All persons licensed
as certified public accountants, public accountants, and accounting
practitioners may practice and operate in any form or manner provided by
law. For purposes of this chapter, `professional association' means
professional association or professional corporation."
Five years experience teaching accounting
SECTION 2. Section 40-1-190 of the 1976 Code is amended to read:
"Section 40-1-190. The examination described in Section
40-1-170 must be held by the board at least once each year.
The board shall advertise the dates of the examinations at least eight
weeks prior to the date set in a newspaper so as to provide adequate
statewide notice. Beginning in 1986 the dates set in a newspaper must be
at least by September first for the November examination and by March
first for the May examination.
The board may make use of all or any part of the uniform certified
public accountants' examination or advisory grading service as it considers
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 is either:
(a) two years of accounting experience in public, governmental, or
private employment under the direct supervision and review of a certified
public accountant licensed to practice accounting in some state or territory
of the United States or the District of Columbia;
(b) five years experience teaching accounting in a college or university
recognized by the board; or
(c) any combination of such experience determined by the board to be
substantially equivalent to the foregoing. The experience must 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 if at the time he took the examination
he was not a resident of this State. The regulation must include
requirements as the board determines appropriate in order that any
examination approved as a basis for any such credit is, in the judgment of
the board, at least as thorough as that included in the most recent
examination given by the board at the time of the granting of 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
theremaining 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.
The board shall charge each candidate a fee, to be determined by the
board, not in excess of two hundred dollars for the initial examination
provided for in Section 40-1-170.
Fees for reexamination provided by this section are charged by the board
in amounts determined by it, but not in excess of eighty dollars for each
subject in which the candidate is reexamined.
An application for examination or reexamination as prescribed by the
board must be submitted and the applicable fee paid at least five weeks
prior to the date of the examination. Beginning in 1986, the application
must be submitted and the applicable fee paid by September fifteenth for
the November examination and by March fifteenth for the May
examination."
Reciprocity for nonresident accountants
SECTION 3. Section 40-1-240 of the 1976 Code, as last amended by Act
22 of 1991, is further amended to read:
"Section 40-1-240. (A) The board, upon application in writing,
may waive the examination referred to in Section 40-1-170 and issue a
certificate to a person who is the holder of a certificate, or the equivalent, as
a certified public accountant issued under the laws of any state or territory
of the United States or the District of Columbia and:
(1) who has the qualifications required by this article and the
regulations of the board; or
(2) when, in the judgment of the board, the requirements for issuing or
granting certificates in the other state, territory, or the District of Columbia
are substantially equivalent to the requirements established by this article
and the regulations of the board, and provided further, that the other state or
political subdivision of the United States grants the same privileges to
holders of certificates issued by this State.
(B) The board, upon application in writing, may waive the examination
referred to in Section 40-1-170 and issue a certificate to a holder of a
foreign designation, granted in a foreign country entitling the holder thereof
to engage in the practice of public accountancy provided that:
(1) the foreign authority which granted the designation makes similar
provisions to allow a person who holds a valid certificate issued by this
State to obtain such foreign authority's comparable designation;
(2) the foreign designation:
(a) was duly issued by a foreign authority that regulates the practice
of public accountancy and the foreign designation has not expired or been
revoked or suspended;
(b) entitles the holder to issue reports upon financial statements;
and
(c) was issued upon the basis of educational, examination, and
experience requirements by the foreign authority or by law; and
(3) the applicant: (a) received the designation, based on
educational and examination standards substantially equivalent to those in
effect in this State at the time the foreign designation was granted;
(b) completed an experience requirement substantially equivalent to
the requirement set out in Section 40-1-190 and regulations of the board;
and
(c) passed a uniform qualifying examination in national standards
acceptable to the board."
Certificate of compliance for accountants
SECTION 4. Section 40-1-270 of the 1976 Code is amended to read:
"Section 40-1-270. Every registered certified public accountant,
public accountant, or accounting practitioner who desires to continue to
practice as such in this State must meet the following requirements on or
before the dates indicated:
(1) pay to the secretary of the board annually on or before July first a
license fee, to be fixed by the board; and
(2) annually, on or before the last day of February of each year, file
with the board, on a form or forms prescribed by the board for this purpose,
a certificate of compliance with the continuing education requirements
necessary for license renewals as required by Section 40-1-380.
The board, by regulation, may provide a penalty not to exceed five
hundred dollars for each violation for failure to comply with the provisions
of either items (1) or (2) above.
Upon payment of the fee, any penalty required, and filing of the
certificate in proper form, the secretary of the board shall issue a license
entitling the applicant to practice in this State until July first of the
following year.
The board may, in its discretion, reduce or waive the above requirements
in cases of illness, mental or physical incapacity, retirement from practice,
and similar situations."
Specific violations for revocation or suspension of a license or permit
for accountants
SECTION 5. Section 40-1-290 of the 1976 Code is amended to read:
"Section 40-1-290. (A) After notice and hearing pursuant to
Section 40-1-310, the board may revoke any certificate as a certified public
accountant or license as a public accountant issued under the provisions of
this article ; suspend any such certificate or license for a period of not more
than five years; reprimand, censure, or limit the scope of practice of any
certificate holder or licensee; impose an administrative fine not exceeding
$1,000; or place any certificate holder or licensee on probation, all with or
without terms, conditions, and limitations, for any one or more of the
following reasons: (1) fraud or deceit in obtaining a certificate or
license;
(2) cancellation, revocation, suspension, or refusal to renew authority
to engage in the practice of public accountancy in any other state, territory
of the United States, or the District of Columbia, for any cause;
(3) revocation or suspension of the right to practice before any state or
federal agency;
(4) dishonesty, fraud, or gross negligence in the practice of public
accountancy or in the filing or failure to file the certificate holder's or
licensee's own income tax returns;
(5) violation of any provision of this article or any rule or regulation
promulgated by the board under the authority granted by this article ;
(6) violation of any rule of professional conduct promulgated by the
board under the authority granted by this article ;
(7) conviction of a felony, or any crime an element of which is
dishonesty or fraud, under the laws of the United States, of this State, or
any other state if the acts involved would have constituted a crime under
the laws of this State. The record of conviction, or a copy thereof, certified
by the clerk of court or the judge in whose court the conviction is had, shall
be conclusive evidence thereof; and the word `conviction' shall include a
plea of guilty or a plea of nolo contendere;
(8) performance of any fraudulent act while holding a certificate or
license under this article ; or
(9) any conduct reflecting adversely upon the certificate holder's or
licensee's fitness to engage in the practice of public accountancy.
(B) In lieu of or in addition to any remedy specifically provided in (A)
above, the board may require one or more of the following requirements of
a certificate holder or licensee:
(1) a quality review conducted in such fashion as the board may
require; or
(2) satisfactory completion of such continuing professional education
programs as the board may specify.
A `quality review' means a study, appraisal, or review of one or more
aspects of the professional work of a person or firm in the practice of public
accountancy by a person or persons who hold certificates or licenses and
who are not affiliated with the person or firm being reviewed. (C) In any proceeding in which a remedy imposed by subsections (A)
and (B) of this section is imposed, the board may also require the
respondent certificate holder or licensee to pay the costs of the
proceeding."
Specific violations for revocation or suspension of a license or permit
for accounting practitioners
SECTION 6. Section 40-1-570 of the 1976 Code is amended to read:
"Section 40-1-570. (A) After notice and hearing pursuant to
Section 40-1-310 the board may revoke any license or permit as accounting
practitioner issued under the provisions of this article ; suspend any such
license or permit for a period of not more than five years; reprimand,
censure, or limit the scope of practice of any license or permit
holder;impose an administrative fine not exceeding $1,000; or, place any
license or permit holder on probation, all with or without terms, conditions,
and limitation, for any one or more of the following reasons:
(1) fraud or deceit in obtaining a license or permit;
(2) cancellation, revocation, suspension, or refusal to renew authority
to engage in the practice of public accountancy in any other state, territory
of the United States, or the District of Columbia for any cause;
(3) revocation or suspension of the right to practice before any state or
federal agency;
(4) dishonesty, fraud, or gross negligence in the practice of public
accounting or in filing or failure to file the license or permit holder's own
income tax return;
(5) violation of any provision of Article 1 or Article 3 of this chapter
or any rule or regulation promulgated by the board under the authority
granted by this chapter;
(6) violation of any rule of professional conduct promulgated by the
board under the authority granted by this chapter;
(7) conviction of a felony, or any crime an element of which is
dishonesty or fraud, under the laws of the United States, of this State, or
any other state if the acts involved would have constituted a crime under
the laws of this State. The record of conviction, or a copy thereof, certified
by the clerk of court or the judge in whose court the conviction is had, shall
be conclusive evidence thereof and the word `conviction' shall include a
plea of guilty or a plea of nolo contendere;
(8) performance of any fraudulent act while holding a license or
permit under this article; or
(9) any conduct reflecting adversely upon the license or permit
holder's fitness to engage in the practice of public accountancy.
(B) In lieu of or in addition to any remedy specifically provided in (A)
above, the board may require one or more of the following requirements of
a license or permit holder:
(1) a quality review conducted in such fashion as the board may
require; or
(2) satisfactory completion of such continuing professional education
programs as the board may specify.
A `quality review' means a study, appraisal, or review of one or more
aspects of the professional work of a person or firm in the practice of public
accountancy by a person or persons who hold certificates or licenses and
who are not affiliated with the person or firm being reviewed.
(C) In any proceeding in which a remedy imposed by subsections (A)
and (B) of this section is imposed, the board may also require the
respondent license or permit holder to pay the costs of the
proceeding."
Time effective
SECTION 7. This act takes effect upon approval by the Governor.
Approved the 14th day of June, 1993. |