CODING: Words stricken are deletions; words underlined are additions.House Bill 0947
Florida House of Representatives - 1997 HB 947
By Representative Safley
1 A bill to be entitled
2 An act relating to public accountancy; amending
3 s. 473.309, F.S.; revising practice
4 requirements for partnerships, corporations,
5 and limited liability companies; providing that
6 business entities are practicing public
7 accounting if their employees are practicing
8 public accounting; amending s. 473.319, F.S.;
9 restricting the prohibition on contingency fees
10 to certain public accounting services; amending
11 s. 473.3205, F.S.; prohibiting licensees from
12 accepting or paying commissions or referral
13 fees in connection with the sale or referral of
14 certain public accounting services; requiring
15 written disclosure to clients relating to the
16 acceptance of certain commissions; amending s.
17 473.323, F.S.; providing that failing to
18 provide any required written disclosure to a
19 client or the public is a ground for
20 disciplinary action; providing penalties;
21 providing an effective date.
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23 Be It Enacted by the Legislature of the State of Florida:
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25 Section 1. Section 473.309, Florida Statutes, is
26 amended to read:
27 473.309 Practice requirements for partnerships,
28 professional service corporations, and limited liability
29 companies; business entities practicing public accounting.--
30 (1) A partnership may shall not engage in the practice
31 of public accounting in this state unless:
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1 (a) It is a form of partnership recognized by Florida
2 law.
3 (b) Partners owning two-thirds of the financial
4 interest and voting rights of the partnership are certified
5 public accountants Each partner is a certified public
6 accountant in some state.; and
7 (c)(a) At least one general partner and each partner
8 domiciled in this state is a certified public accountant of
9 this state and holds an active license.;
10 (d) All noncertified public accountant partners are
11 engaged in the business of the partnership as their principal
12 occupation.
13 (e) It is in compliance with rules adopted by the
14 board pertaining to minimum capitalization and adequate public
15 liability insurance.
16 (f)(c) It The partnership is currently licensed as
17 required by s. 473.3101.
18 (2) A corporation may shall not engage in the practice
19 of public accounting in this state unless:
20 (a) It is a professional service corporation duly
21 organized in this or some any other state.;
22 (b) Shareholders Each shareholder of the corporation
23 owning two-thirds of the financial interest and voting rights
24 of the corporation are certified public accountants is
25 licensed as a certified public accountant in some state and
26 are is principally engaged in the business of the
27 corporation.;
28 (c) The principal officer of the corporation and any
29 officer or director having authority over the practice of
30 public accounting by the corporation is a certified public
31 accountant in some state.;
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1 (d) At least one shareholder of the corporation, and
2 each shareholder, director, and officer domiciled in this
3 state having authority over the practice of public accounting
4 by the corporation, is a certified public accountant and holds
5 an active license in this state.;
6 (e) All noncertified public accountant partners are
7 engaged in the business of the corporation as their principal
8 occupation.
9 (f)(e) It is in compliance with rules adopted by the
10 board pertaining to minimum capitalization and adequate public
11 liability insurance.; and
12 (g)(f) It is currently licensed as required by s.
13 473.3101.
14 (3) A limited liability company may not engage in the
15 practice of public accounting in this state unless:
16 (a) It is a limited liability company duly that is
17 organized in this or some any other state.
18 (b) Members Each member of the limited liability
19 company owning two-thirds of the financial interest and voting
20 rights of the company are certified public accountants is a
21 certified public accountant in some state.
22 (c) At least one member of the limited liability
23 company, and each member or manager domiciled in this state
24 having authority over the practice of public accounting by the
25 limited liability company, is a certified public accountant
26 and holds an active license in this state.
27 (d) All noncertified accountant partners are engaged
28 in the business of the company as their principal occupation.
29 (e)(e) It is in compliance with rules adopted by the
30 board pertaining to minimum capitalization and adequate public
31 liability insurance.
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Florida House of Representatives - 1997 HB 947
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1 (f)(d) It is currently licensed as required by s.
2 473.3101.
3 (4) A partnership, corporation, limited liability
4 company, or any other business entity is engaged in the
5 practice of public accounting if its employees are engaged in
6 the practice of public accounting.
7 Section 2. Section 473.319, Florida Statutes, is
8 amended to read:
9 473.319 Contingent fees.--Public accounting services
10 as defined in s. 473.302(5)(a), and those that include tax
11 filings with federal, state, or local government, shall not be
12 offered or rendered for a fee contingent upon the findings or
13 results of such service. This section does not apply to
14 services involving federal, state, or other taxes in which the
15 findings are those of the tax authorities and not those of the
16 licensee. Fees to be fixed by courts or other public
17 authorities, which are of an indeterminate amount at the time
18 a public accounting service is undertaken, shall not be
19 regarded as contingent fees for purposes of this section.
20 Section 3. Section 473.3205, Florida Statutes, is
21 amended to read:
22 473.3205 Commissions or referral fees.--A licensee may
23 not accept or pay a commission or referral fee in connection
24 with the sale or referral of public accounting services as
25 defined in s. 473.302(5)(a). Any certified public accountant
26 or business entity that is engaged in the practice of public
27 accounting and that accepts a commission for the sale of a
28 product or service to a client must disclose that fact to the
29 client in writing in accordance with rules adopted by the
30 board. A licensee who is engaged in the practice of public
31 accounting shall not pay a commission to obtain a client, nor
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1 shall he accept compensation for the sale of products, other
2 than the work product of the licensee, or for referral of
3 products or services of others. However, this section shall
4 not prohibit:
5 (1) Payments for the purchase of an accounting
6 practice;
7 (2) Retirement payments to individuals formerly
8 engaged in the practice of public accounting or payments to
9 their heirs or estates; or
10 (3) Payment of fees to a referring licensee for public
11 accounting services to either the successor licensee or the
12 client in connection with an engagement.
13 Section 4. Paragraph (m) is added to subsection (1) of
14 section 473.323, Florida Statutes, 1996 Supplement, to read:
15 473.323 Disciplinary proceedings.--
16 (1) The following acts constitute grounds for which
17 the disciplinary actions in subsection (3) may be taken:
18 (m) Failing to provide any written disclosure to a
19 client or the public which is required by this chapter or rule
20 of the board.
21 Section 5. This act shall take effect October 1, 1997.
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2 HOUSE SUMMARY
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Revises various provisions relating to public
4 accountancy. Revises practice requirements for
partnerships, corporations, and limited liability
5 companies. Provides that business entities are
practicing public accounting if their employees are
6 practicing public accounting. Restricts the prohibition
on contingency fees to certain public accounting
7 services. Prohibits a licensee from accepting or paying
a commission or referral fee in connection with the sale
8 or referral of certain public accounting services.
Requires written disclosure to clients relating to
9 acceptance of commissions for the sale of products or
services to clients. Provides that failing to provide
10 any required written disclosure to a client or the public
is a ground for disciplinary action. See bill for
11 details.
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