Bill 3710

                    Current Status

Bill Number:               3710
Ratification Number:       507
Act Number                 436
Introducing Body:          House
Subject:                   Board of Accountancy shall adopt
                           regulations relating to continuing education
                           for accountants

(A436, R507, H3710)

AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 40-1-380 SO AS TO PROVIDE THAT THE BOARD OF ACCOUNTANCY SHALL ADOPT REGULATIONS RELATING TO CONTINUING EDUCATION FOR ACCOUNTANTS; AND TO AMEND SECTIONS 40-1-90, 40-1-100, 40-1-160, 40-1-190, AS AMENDED, 40-1-200, 40-1-240 AND 40-1-270 OF THE 1976 CODE, RELATING TO THE BOARD OF ACCOUNTANCY AND LICENSING OF ACCOUNTANTS, SO AS TO RECONSTITUTE THE MEMBERSHIP OF THE BOARD, DEFINE QUORUM FOR BOARD MEETINGS, PROVIDE FOR THE ANNUAL REPORT OF THE BOARD, PROVIDE FOR QUALIFICATIONS FOR APPLICANTS FOR EXAMINATIONS AND THE CONDUCT OF EXAMINATIONS, TO PROVIDE FOR EXPERIENCE REQUIREMENTS FOR LICENSING, TO PROVIDE THAT CERTIFICATES OF COMPLIANCE SHALL BE FILED WITH THE BOARD AND TO PROVIDE FOR CONTINUING EDUCATION REQUIREMENTS; TO REAUTHORIZE THE EXISTENCE OF THE BOARD.

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

Vacancies to be filled

Section 1. Section 40-1-90 of the 1976 Code is amended to read:

"Section 40-1-90. Beginning with the year 1980, the vacancies created by the expiration of the terms of the two public accountant members of the Board whose terms expire first shall be filled by two public members not engaged in the practice of accountancy."

Majority to constitute quorum

Section 2. Section 40-1-100 of the 1976 Code is amended by striking all after "members" on line three and inserting "." The section when amended shall read:

"Section 40-1-100. A majority of the membership of the Board shall constitute a quorum and action shall be by majority vote. The Board may provide for proxy voting by absent members."

Board to make annual report

Section 3. Section 40-1-160 of the 1976 Code is amended to read:

"Section 40-1-160. The Board shall make an annual report as provided by law as soon as practicable after the close of its fiscal year which shall end on June thirtieth."

Examination to be held

Section 4. Section 40-1-190 of the 1976 Code, as last amended by Section 27, Part II, of Act 219 of 1977, is further amended to 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 six 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 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 judgement 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 examined 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 educational 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 three weeks prior to the date of the examination."

Designation as Certified Public Accountant

Section 5. Section 40-1-200 of the 1976 Code is amended by deleting "and initial licenses as a public accountant" on lines one and two. The section when amended shall read:

"Section 40-1-200. Certificates of registration as a certified public accountant issued by the Board shall be signed by the chairman and secretary-treasurer and the Board shall collect from the recipient a fee not in excess of twenty-five dollars.

Any person who holds a certificate of registration as a certified public accountant under this article, which is in full force and effect, shall be styled and known as a 'certified public accountant' and may also use the designation 'CPA.' Any certified public accountant may also be known as a 'public accountant'. The Board shall maintain a list of certified public accountants.

Any person who holds a license as a public accountant under this article, which is in full force and effect, shall be styled and known

as a 'public accountant' and may also use the designation 'PA'. The Board shall maintain a list of public accountants."

Board may waive examination

Section 6. Section 40-1-240 of the 1976 Code is amended by deleting the last paragraph. The section when amended shall read:

"Section 40-1-240. The Board may, in its discretion, upon application in writing, waive the examination referred to in Section 40-1-170 and issue a certificate to any person who has the qualifications required by this article and the rules of the Board when such person "shall submit to the Board such evidence as to such qualifications as may be required by and be satisfactory to the Board and when (a) such person for not less than one year has been the holder of a certificate, license or degree in another state or a foreign country constituting a recognized qualification for the practice of public accounting in such state or foreign country, and (b) the standards prescribed by law or the rules and examinations conducted in such state or foreign nation are, in the opinion of the Board, fully equivalent to the standards in this State.

Any nonresident obtaining a certificate in this State under the provisions of this section shall pay such application, certificate and license fees as are required of bona fide residents of this State and shall be subject to such regulations and restrictions as are required of bona fide residents who are recipients of certificates of registration under this article."

Forms filed with Secretary of Board

Section 7. Item (2) of Section 4~1-270 of the 1976 Code is amended by striking "40-1-610" on line four and inserting "40-1-380". The item when amended shall read:

"(2) Effective July 1, 1976, file with the secretary of the Board, on a form or forms prescribed by the Board for such purpose, a certificate of compliance with the continuing education requirements necessary for license renewal as required by Section 40-1-380."

Board to promulgate regulations

Section 8. The 1976 Code is amended by adding:

"Section 40-1-380. The Board shall adopt regulations implementing the requirements for continuing education which must be met ,by certified public accountants and public accountants. The Board shall require no less than sixty hours of continuing educational activities in any two year period. Effective January 1, 1981, 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 and public accountant. The requirements may be waived by the Board in individual cases for good cause."

Board reauthorized

Section 9. In accordance with the provisions of Section 7 of Act 608 of 1978, the existence of the Board of Accountancy is reauthorized.

Time effective

Section 10. This act shall take effect upon approval by the Governor.