Senate Bill 0688c1

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    Florida Senate - 2000                            CS for SB 688

    By the Committee on Regulated Industries and Senator Sullivan





    315-875-00

  1                      A bill to be entitled

  2         An act relating to public accountancy; amending

  3         s. 473.308, F.S.; extending an application

  4         deadline for licensure based on certain

  5         practice experience; amending s. 473.309, F.S.;

  6         revising a practice requirement of

  7         partnerships, corporations, and limited

  8         liability companies relating to ownership;

  9         amending s. 473.322, F.S.; providing

10         restrictions on the use of practice titles,

11         designations, and abbreviations; providing an

12         effective date.

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14         WHEREAS, it is the intent of the Legislature to protect

15  persons in this state who receive public accounting services

16  from certified public accountants, and

17         WHEREAS, it is the further intent of the Legislature to

18  prevent confusion in the provision of accounting services by

19  Florida and non-Florida certified public accountants by

20  regulating such services and service providers, and

21         WHEREAS, it is the further intent of the Legislature to

22  ensure that persons receiving public accounting services in

23  this state receive such services from persons who are licensed

24  and regulated by this state, NOW, THEREFORE,

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26  Be It Enacted by the Legislature of the State of Florida:

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28         Section 1.  Subsection (4) of section 473.308, Florida

29  Statutes, is amended to read:

30         473.308  Licensure.--

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    Florida Senate - 2000                            CS for SB 688
    315-875-00




  1         (4)  If application for licensure is made prior to

  2  October 1, 2005 August 1, 2000, and the applicant has 5 years

  3  of experience in the practice of public accountancy in the

  4  United States or in the practice of public accountancy or its

  5  equivalent in a foreign country that the International

  6  Qualifications Appraisal Board of the National Association of

  7  State Boards of Accountancy has determined has licensure

  8  standards that are substantially equivalent to those in the

  9  United States, the board shall waive the requirements of s.

10  473.306(2)(b)2. that are in excess of a baccalaureate degree.

11  All experience that is used as a basis for waiving said

12  requirements of s. 473.306(2)(b)2. must be experience outside

13  this state. Furthermore, said experience must be after

14  licensure as a certified public accountant by another state or

15  territory of the United States or after licensure in the

16  practice of public accountancy or its equivalent in a foreign

17  country that the International Qualifications Appraisal Board

18  of the National Association of State Boards of Accountancy has

19  determined has licensure standards that are substantially

20  equivalent to those in the United States. The board shall have

21  the authority to establish the standards for experience that

22  meet this requirement.

23         Section 2.  Paragraph (b) of subsection (1), paragraph

24  (b) of subsection (2), and paragraph (b) of subsection (3) of

25  section 473.309, Florida Statutes, are amended to read:

26         473.309  Practice requirements for partnerships,

27  corporations, and limited liability companies; business

28  entities practicing public accounting.--

29         (1)  A partnership may not engage in the practice of

30  public accounting, as defined in s. 473.302(7)(a), unless:

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    Florida Senate - 2000                            CS for SB 688
    315-875-00




  1         (b)  Partners owning at least 51 percent two-thirds of

  2  the financial interest and voting rights of the partnership

  3  are certified public accountants in some state. However, each

  4  partner who is a certified public accountant in another state

  5  and is domiciled in this state must be a certified public

  6  accountant of this state and hold an active license.

  7         (2)  A corporation may not engage in the practice of

  8  public accounting, as defined in s. 473.302(7)(a), unless:

  9         (b)  Shareholders of the corporation owning at least 51

10  percent two-thirds of the financial interest and voting rights

11  of the corporation are certified public accountants in some

12  state and are principally engaged in the business of the

13  corporation. However, each shareholder who is a certified

14  public accountant in another state and is domiciled in this

15  state must be a certified public accountant of this state and

16  hold an active license.

17         (3)  A limited liability company may not engage in the

18  practice of public accounting, as defined in s. 473.302(7)(a),

19  unless:

20         (b)  Members of the limited liability company owning at

21  least 51 percent two-thirds of the financial interest and

22  voting rights of the company are certified public accountants

23  in some state. However, each member who is a certified public

24  accountant in some state and is domiciled in this state must

25  be a certified public accountant of this state and hold an

26  active license.

27         Section 3.  Section 473.322, Florida Statutes, is

28  amended to read:

29         473.322  Prohibitions; penalties.--

30         (1)  A person may not knowingly:

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    Florida Senate - 2000                            CS for SB 688
    315-875-00




  1         (a)  Practice public accounting unless the person is a

  2  certified public accountant or a public accountant;

  3         (b)  Assume or use the titles or designations

  4  "certified public accountant" or "public accountant" or the

  5  abbreviation "C.P.A." or any other title, designation, words,

  6  letters, abbreviations, sign, card, or device tending to

  7  indicate that the person holds a license to practice public

  8  accounting an active license under this chapter or the laws of

  9  any other state, territory, or foreign jurisdiction, unless

10  the person holds an active license under this chapter;

11         (c)  Perform or offer to perform any services described

12  in s. 473.302(7)(a) unless such person holds an active license

13  under this chapter and is a licensed audit firm or provides

14  such services through a licensed audit firm. This paragraph

15  does not prohibit the performance by persons other than

16  certified public accountants of other services involving the

17  use of accounting skills, including the preparation of tax

18  returns and the preparation of financial statements without

19  expression of opinion thereon;

20         (d)  Present as her or his own the license of another;

21         (e)  Give false or forged evidence to the board or a

22  member thereof;

23         (f)  Use or attempt to use a public accounting license

24  that has been suspended, revoked, or placed on inactive or

25  delinquent status;

26         (g)  Employ unlicensed persons to practice public

27  accounting; or

28         (h)  Conceal information relative to violations of this

29  chapter.

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    Florida Senate - 2000                            CS for SB 688
    315-875-00




  1         (2)  Any person who violates any provision of this

  2  section commits a misdemeanor of the first degree, punishable

  3  as provided in s. 775.082 or s. 775.083.

  4         Section 4.  This act shall take effect July 1, 2000.

  5

  6          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
  7                         Senate Bill 688

  8

  9  The Committee Substitute for Senate Bill 688 contains the
    following substantial changes:
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    -     Deletes the provision allowing a person who is licensed
11        to practice public accountancy in another state, but who
          is not licensed practice in this state, to use the
12        designation "certified public accountant" if done in
          conjunction with a prescribed disclaimer;
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    -     Replaces this with a prohibition against such a person
14        using any designation that would tend to indicate that
          the person holds a license to practice public
15        accountancy under Florida law or the laws of any other
          state or territory; and
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    -     Makes technical, clarifying amendments.
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