HB 413

1
A bill to be entitled
2An act relating to public accountancy; creating s.
3473.3066, F.S.; authorizing the Board of Accountancy to
4establish a peer review oversight committee; providing for
5membership and duties of the oversight committee;
6requiring the board to adopt rules under certain
7circumstances; amending s. 473.311, F.S.; revising
8licensure renewal requirements for firms engaged in
9certain aspects of the practice of public accounting;
10requiring such firms to comply with certain peer review
11requirements; providing an exception; creating s.
12473.3125, F.S.; defining terms for purposes of peer review
13requirements; requiring firms engaged in certain aspects
14of the practice of public accounting to enroll in peer
15review programs and undergo peer reviews; providing for
16the frequency of peer reviews; providing exceptions;
17requiring firms that fail a specified number of peer
18reviews to submit certain documentation to the board;
19requiring the board to establish minimum standards for
20peer review programs; providing for the approval of peer
21review administering organizations; requiring peer review
22administering organizations to submit certain information
23to the board; authorizing the board to withdraw approval
24of peer review administering organizations under certain
25circumstances; requiring the board to adopt rules;
26limiting the liability of certain persons relating to the
27performance of certain services and duties of peer review
28administering organizations; providing that the
29proceedings, records, and workpapers of peer review
30administering organizations are confidential and
31privileged; providing exceptions; prohibiting persons
32involved in peer reviews from testifying; amending s.
33473.323, F.S.; providing additional grounds for the
34discipline of firms engaged in certain aspects of the
35practice of public accounting, to which penalties apply;
36revising requirements for reissuance of licenses after
37compliance with disciplinary final orders; conforming
38provisions; providing an effective date.
39
40Be It Enacted by the Legislature of the State of Florida:
41
42     Section 1.  Section 473.3066, Florida Statutes, is created
43to read:
44     473.3066  Peer review oversight committee.-
45     (1)  The board may establish a peer review oversight
46committee to oversee the peer review requirements of s.
47473.3125.
48     (2)  If the board establishes the peer review oversight
49committee, the board shall adopt rules providing for the
50qualifications, appointment, and terms of committee members as
51follows:
52     (a)  The peer review oversight committee shall be composed
53of five or fewer members appointed by the board.
54     (b)  Each committee member must hold a valid license as a
55Florida certified public accountant.
56     (c)  Each committee member or his or her firm must have
57undergone a peer review and received a review rating of "pass"
58on the most recent peer review.
59     (d)  A committee member may not be a member of any state
60accountancy board, be a member of another state accountancy
61board committee, or perform any enforcement-related work for a
62state accountancy board.
63     (e)  Committee members shall serve for terms not to exceed
643 years, except that the board, to establish staggered terms,
65may appoint members to initial terms that are shorter than the
66terms adopted by rule. The board shall fill the vacancy of a
67committee member for the unexpired portion of the member's term
68in the same manner as the original appointment.
69     (f)  Committee members shall serve without compensation and
70are not entitled to reimbursement of per diem or travel
71expenses.
72     (3)  The rules, if adopted, shall also provide for the
73duties of the peer review oversight committee, which may
74include, but are not limited to:
75     (a)  Providing oversight for peer review programs and peer
76review administering organizations.
77     (b)  Periodically reporting to the board on the
78effectiveness of peer review programs and providing a list of
79licensees that participate in the programs.
80     (c)  Performing other duties relating to oversight of peer
81review programs.
82     Section 2.  Section 473.311, Florida Statutes, is amended
83to read:
84     473.311  Renewal of license.-
85     (1)  The department shall renew a license issued under s.
86473.308 upon receipt of the renewal application and fee and upon
87certification by the board that the Florida certified public
88accountant has satisfactorily completed the continuing education
89requirements of s. 473.312.
90     (2)  Effective January 1, 2015, the department shall renew
91a license issued under s. 473.3101 upon certification by the
92board that the sole proprietor, partnership, corporation,
93limited liability company, or other firm engaged in the practice
94of public accounting as defined in s. 473.302(8)(a) has
95satisfactorily complied with the peer review requirements of s.
96473.3125 or that the board has extended the time to comply with
97the peer review requirements.
98     (3)(2)  The department shall adopt rules establishing a
99procedure for the biennial renewal of licenses issued under ss.
100473.308 and 473.3101.
101     Section 3.  Section 473.3125, Florida Statutes, is created
102to read:
103     473.3125  Peer review.-
104     (1)  As used in this section, the term:
105     (a)  "Licensee" means a sole proprietor, partnership,
106corporation, limited liability company, or any other firm
107engaged in the practice of public accounting as defined in s.
108473.302(8)(a) which is required to be licensed under s.
109473.3101.
110     (b)  "Peer review" means the study, appraisal, or review by
111one or more independent certified public accountants of one or
112more aspects of the professional work of a licensee.
113     (2)(a)  Except as otherwise provided in paragraph (b) or
114paragraph (c), a licensee must:
115     1.  Enroll in the peer review program of a peer review
116administering organization approved by the board; and
117     2.  Undergo a complete peer review at least once every 3
118years, which is performed in the manner prescribed by this
119section and rules adopted by the board under this section and
120for which a peer review report is submitted to and accepted by
121the peer review administering organization.
122     (b)  A licensee is not required to enroll in a peer review
123program or undergo a peer review if the licensee does not engage
124in the practice of public accounting as defined in s.
125473.302(8)(a).
126     (c)  A licensee that is licensed for less than 18 months
127must enroll in a peer review program but is not required to
128undergo a peer review.
129     (d)  A licensee that receives a review rating of "fail" on
130two consecutive peer reviews must submit to the board any
131documentation requested by the board relating to the peer
132reviews for which the licensee received a review rating of
133"fail."
134     (3)(a)  The board shall adopt rules establishing minimum
135standards for peer review programs, including, but not limited
136to, standards for administering, performing, and reporting peer
137reviews. The board shall also adopt rules establishing minimum
138criteria for the board's approval of one or more peer review
139administering organizations to facilitate and administer peer
140review programs.
141     (b)  The rules shall require a peer review administering
142organization to submit to the board a written summary of the
143organization's peer review program, including a description of
144its entire peer review process; the organization's standards for
145administering, performing, and reporting peer reviews; oversight
146procedures; training requirements; and support materials.
147     (c)  The board may approve a peer review administering
148organization, if:
149     1.  The organization meets or exceeds the board's minimum
150criteria for the approval of peer review administering
151organizations.
152     2.  The organization's peer review program meets or exceeds
153the board's minimum standards for peer review programs.
154     3.  The organization demonstrates the ability to administer
155its peer review program in the manner described in its written
156summary and to comply with the board's minimum standards for
157peer review programs.
158     (d)  The board may withdraw its approval of a peer review
159administering organization if the organization fails to comply
160with this section or rules adopted by the board under this
161section.
162     (4)  A certified public accountant or other person
163appointed or authorized to perform administrative services for a
164peer review administering organization is immune from civil
165liability for furnishing information, data, reports, or records
166to the peer review administering organization or for damages
167resulting from any decision, opinion, action, or proceeding
168rendered, entered, or acted upon by the peer review
169administering organization which is undertaken or performed
170within the scope or function of the duties of the peer review
171administering organization.
172     (5)  The proceedings, records, and workpapers of a peer
173review administering organization are privileged, confidential,
174and not subject to discovery, subpoena, or other means of legal
175process or to introduction into evidence in a civil action or
176arbitration proceeding. A person who is involved in a peer
177review may not testify in a civil action or arbitration
178proceeding as to any matter produced, presented, disclosed, or
179discussed during or in connection with the peer review or as to
180any finding, recommendation, evaluation, opinion, or other
181action of the peer review administering organization. Public
182records and materials prepared for a particular engagement are
183not privileged merely because they were presented or considered
184as part of a peer review. This privilege does not apply to any
185dispute between a peer review administering organization and the
186licensee subject to a review arising from the performance of the
187peer review.
188     Section 4.  Section 473.323, Florida Statutes, is amended
189to read:
190     473.323  Disciplinary proceedings.-
191     (1)  The following acts constitute grounds for which The
192disciplinary actions in subsection (3) may be taken against any
193certified public accountant or firm that:
194     (a)  Violates Violation of any provision of s. 455.227(1)
195or any other provision of this chapter.
196     (b)  Attempts Attempting to procure a license to practice
197public accounting by bribery or fraudulent misrepresentations.
198     (c)  Has Having a license to practice public accounting
199revoked, suspended, or otherwise acted against, including the
200denial of licensure, by the licensing authority of another
201state, territory, or country.
202     (d)  Is Being convicted or found guilty of, or enters
203entering a plea of nolo contendere to, regardless of
204adjudication, a crime in any jurisdiction which directly relates
205to the practice of public accounting or the ability to practice
206public accounting.
207     (e)  Makes Making or files filing a report or record that
208the certified public accountant or firm knows to be false,
209willfully fails failing to file a report or record required by
210state or federal law, willfully impedes impeding or obstructs
211obstructing such filing, or induces inducing another person to
212impede or obstruct such filing. Such reports or records include
213only those that are signed in the capacity of a certified public
214accountant.
215     (f)  Advertises Advertising goods or services in a manner
216that is fraudulent, false, deceptive, or misleading in form or
217content.
218     (g)  Commits Committing an act of fraud or deceit, or of
219negligence, incompetency, or misconduct, in the practice of
220public accounting.
221     (h)  Violates Violation of any rule adopted under pursuant
222to this chapter or chapter 455.
223     (i)  Practices public accounting with Practicing on a
224revoked, suspended, inactive, or delinquent license.
225     (j)  Has Suspension or revocation of the right to practice
226public accounting suspended or revoked by before any state or
227federal agency.
228     (k)  Performs Performance of any fraudulent act in any
229jurisdiction while holding a license to practice public
230accounting in this state or while using practice privileges in
231this state.
232     (l)  Fails Failing to maintain a good moral character as
233provided in s. 473.308 while applying for licensure, or while
234licensed in this state, or while using practice privileges under
235pursuant to s. 473.3141.
236     (m)  Fails Failing to provide any written disclosure to a
237client or the public which is required by this chapter or rule
238adopted by of the board.
239     (n)  Has Having the same or equivalent practice privileges
240of a Florida certified public accountant or firm revoked,
241suspended, or otherwise acted against by the licensing authority
242of another state, territory, or country as a result of activity
243in that jurisdiction which would have subjected the Florida
244certified public accountant or firm to discipline in this state.
245
246(2)  The board shall specify, by rule, what acts or omissions
247constitute a violation of this subsection (1).
248     (2)  The disciplinary actions in subsection (3) may be
249taken against any licensed audit firm or public accounting firm
250licensed under s. 473.3101 engaged in the practice of public
251accounting as defined in s. 473.302(8)(a) that:
252     (a)  Fails to enroll in a peer review program or undergo a
253peer review as required under s. 473.3125.
254     (b)  Engages in material noncooperation with a peer review
255administering organization approved by the board under s.
256473.3125.
257     (3)  When the board finds any certified public accountant
258or firm guilty of any of the grounds set forth in subsection
259(1), or finds any licensed audit firm or public accounting firm
260licensed under s. 473.3101 engaged in the practice of public
261accounting as defined in s. 473.302(8)(a) guilty of any of the
262grounds set forth in subsection (2), the board it may enter an
263order imposing one or more of the following penalties:
264     (a)  Denial of an application for licensure.
265     (b)  Revocation or suspension of the certified public
266accountant or licensed audit firm's or public accounting firm's
267license or practice privileges in this state.
268     (c)  Imposition of an administrative fine not to exceed
269$5,000 for each count or separate offense.
270     (d)  Issuance of a reprimand.
271     (e)  Placement of the certified public accountant on
272probation for a period of time and subject to such conditions as
273the board may specify, including requiring the certified public
274accountant to attend continuing education courses or to work
275under the supervision of another certified public accountant
276licensee.
277     (f)  Restriction of the authorized scope of practice by the
278certified public accountant.
279     (4)  The department shall, reissue the license of a
280disciplined licensee upon certification by the board that a
281certified public accountant, licensed audit firm, or public
282accounting firm whose license was subject to discipline the
283disciplined licensee has complied with all of the terms and
284conditions set forth in the final order, reissue the license
285under s. 473.311.
286     Section 5.  This act shall take effect July 1, 2011.


CODING: Words stricken are deletions; words underlined are additions.