South Carolina General Assembly
110th Session, 1993-1994

Bill 747


                    Current Status
Introducing Body:               Senate
Bill Number:                    747
Ratification Number:            187
Act Number:                     136
Primary Sponsor:                Committee (11)
Type of Legislation:            GB
Subject:                        Accountants, continuing
                                education
Date Bill Passed both Bodies:   19930602
Computer Document Number:       747
Governor's Action:              S
Date of Governor's Action:      19930614
Introduced Date:                19930428
Last History Body:              ------
Last History Date:              19930614
Last History Type:              Act No. 136
Scope of Legislation:           Statewide
Sponsor Committee:              Judiciary
Sponsor Committee Number:       11
Type of Legislation:            General Bill

History

Bill   Body    Date          Action Description              CMN  Leg Involved
----   ------  ------------  ------------------------------  ---  ------------
747    ------  19930614      Act No. 136
747    ------  19930614      Signed by Governor
747    ------  19930610      Ratified R 187
747    House   19930602      Read third time, enrolled for
                             ratification
747    House   19930601      Read second time
747    House   19930526      Committee Report: Favorable     26
747    House   19930504      Introduced, read first time,    26
                             referred to Committee
747    Senate  19930430      Read third time, sent to House
747    Senate  19930429      Read second time, unanimous
                             consent for third reading on
                             Friday, April 30, 1993
747    Senate  19930428      Introduced, read first time,
                             placed on Calendar without
                             reference
View additional legislative information at the LPITS web site.


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(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.