Bill Text: FL S0636 | 2015 | Regular Session | Comm Sub
Bill Title: Public Accountancy
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2015-04-23 - Laid on Table, companion bill(s) passed, see CS/CS/HB 373 (Ch. 2015-174) [S0636 Detail]
Download: Florida-2015-S0636-Comm_Sub.html
Florida Senate - 2015 CS for SB 636 By the Committee on Regulated Industries; and Senator Latvala 580-03240-15 2015636c1 1 A bill to be entitled 2 An act relating to public accountancy; amending s. 3 473.302, F.S.; revising the definition of the term 4 “licensed audit firm”; amending s. 473.309, F.S.; 5 revising practice requirements for partnerships, 6 corporations, and limited liability companies; 7 amending s. 473.3101, F.S.; revising provisions 8 relating to the licensure of firms and public 9 accounting firms; amending s. 473.316, F.S.; revising 10 the definition of the term “quality review” to include 11 a peer review; amending ss. 473.3125 and 473.322, 12 F.S.; conforming provisions to changes made by the 13 act; providing an effective date. 14 15 Be It Enacted by the Legislature of the State of Florida: 16 17 Section 1. Subsection (7) of section 473.302, Florida 18 Statutes, is amended to read: 19 473.302 Definitions.—As used in this chapter, the term: 20 (7) “Licensedauditfirm” or “public accounting firm” means 21 a sole proprietorship, partnership, corporation, limited 22 liability company, firm, or any other legal entitya firm23 licensed under s. 473.3101. 24 25 However, these terms shall not include services provided by the 26 American Institute of Certified Public Accountants or the 27 Florida Institute of Certified Public Accountants, or any full 28 service association of certified public accounting firms whose 29 plans of administration have been approved by the board, to 30 their members or services performed by these entities in 31 reviewing the services provided to the public by members of 32 these entities. 33 Section 2. Section 473.309, Florida Statutes, is amended to 34 read: 35 473.309 Practice requirements for partnerships, 36 corporations, and limited liability companies; business entities 37 practicing public accounting.— 38 (1) A partnership may not engage in the practice of public 39 accounting, as defined in s. 473.302(8)(a), or meet the 40 requirements of s. 473.3101(1)(b), unless: 41 (a) It is a form of partnership recognized by Florida law. 42 (b) Partners owning at least 51 percent of the financial 43 interest and voting rights of the partnership are certified 44 public accountants in some state. However, each partner who is a 45 certified public accountant in another state and is domiciled in 46 this state must be a certified public accountant of this state 47 and hold an active license. 48 (c) At least one general partner is a certified public 49 accountant of this state and holds an active license or, in the 50 case of a firm that must have a license pursuant to s. 51 473.3101(1)(c)s. 473.3101(1)(a)2., at least one general partner 52 is a certified public accountant in some state and meets the 53 requirements of s. 473.3141(1)(a) or (b). 54 (d) All partners who are not certified public accountants 55 in any state are engaged in the business of the partnership as 56 their principal occupation. 57 (e) It is in compliance with rules adopted by the board 58 pertaining to minimum capitalization, letters of credit, and 59 adequate public liability insurance. 60 (f) It is currently licensed as required by s. 473.3101. 61 (2) A corporation may not engage in the practice of public 62 accounting, as defined in s. 473.302(8)(a), or meet the 63 requirements of s. 473.3101(1)(b), unless: 64 (a) It is a corporation duly organized in this or some 65 other state. 66 (b) Shareholders of the corporation owning at least 51 67 percent of the financial interest and voting rights of the 68 corporation are certified public accountants in some state and 69 are principally engaged in the business of the corporation. 70 However, each shareholder who is a certified public accountant 71 in another state and is domiciled in this state must be a 72 certified public accountant of this state and hold an active 73 license. 74 (c) The principal officer of the corporation is a certified 75 public accountant in some state. 76 (d) At least one shareholder of the corporation is a 77 certified public accountant and holds an active license in this 78 state or, in the case of a firm that must have a license 79 pursuant to s. 473.3101(1)(c)s. 473.3101(1)(a)2., at least one 80 shareholder is a certified public accountant in some state and 81 meets the requirements of s. 473.3141(1)(a) or (b). 82 (e) All shareholders who are not certified public 83 accountants in any state are engaged in the business of the 84 corporation as their principal occupation. 85 (f) It is in compliance with rules adopted by the board 86 pertaining to minimum capitalization, letters of credit, and 87 adequate public liability insurance. 88 (g) It is currently licensed as required by s. 473.3101. 89 (3) A limited liability company may not engage in the 90 practice of public accounting, as defined in s. 473.302(8)(a), 91 or meet the requirements of s. 473.3101(1)(b), unless: 92 (a) It is a limited liability company duly organized in 93 this or some other state. 94 (b) Members of the limited liability company owning at 95 least 51 percent of the financial interest and voting rights of 96 the company are certified public accountants in some state. 97 However, each member who is a certified public accountant in 98 some state and is domiciled in this state must be a certified 99 public accountant of this state and hold an active license. 100 (c) At least one member of the limited liability company is 101 a certified public accountant and holds an active license in 102 this state or, in the case of a firm that must have a license 103 pursuant to s. 473.3101(1)(c)s. 473.3101(1)(a)2., at least one 104 member is a certified public accountant in some state and meets 105 the requirements of s. 473.3141(1)(a) or (b). 106 (d) All members who are not certified public accountants in 107 any state are engaged in the business of the company as their 108 principal occupation. 109 (e) It is in compliance with rules adopted by the board 110 pertaining to minimum capitalization, letters of credit, and 111 adequate public liability insurance. 112 (f) It is currently licensed as required by s. 473.3101. 113 (4) A partnership, corporation, limited liability company, 114 or any other firm is engaged in the practice of public 115 accounting if its employees are engaged in the practice of 116 public accounting. Notwithstanding any other provision of law, a 117 licensedauditfirm may own all or part of another licensed 118auditfirm. 119 Section 3. Section 473.3101, Florida Statutes, is amended 120 to read: 121 473.3101 Licensure of firms or public accounting firmssole122proprietors, partnerships, corporations, limited liability123companies, and other legal entities.— 124 (1) The following must hold a license issued under this 125 section:Each sole proprietor, partnership, corporation, limited126liability company, or any other firm seeking to engage in the127practice of public accounting, as defined in s. 473.302(8)(a),128in this statemust file an application for licensure with the129department and supply the information the board requires. An130application must be made upon the affidavit of a sole131proprietor, general partner, shareholder, or member who is a132certified public accountant.133 (a) Any firm with an office in this state which performs 134 services as defined in s. 473.302(8)(a);The following must hold135a license issued under this section:136 (b)1.Any firm with an office in this state which uses the 137 title “CPA,” “CPA firm,” or any other title, designation, words, 138 letters, abbreviations, or device tending to indicate that it is 139 a CPA firm. The board shall define by rule what constitutes a 140 CPA firm; orthe firm practices public accounting.141 (c)2.Any firm that does not have an office in this state 142 but performs the services described in s. 473.3141(4) for a 143 client having its home office in this state. The board shall 144 define by rule what constitutes an office. 145 (2) An applicant for licensure under this section must file 146 an application for licensure with the department and supply the 147 information that the board requires. An application must be made 148 upon the affidavit of a sole proprietor, general partner, 149 shareholder, or member who is a certified public accountant. 150 (3)(b)A firm that is not subject to the requirements of 151 paragraph (1)(c)subparagraph (a)2.may perform other 152 professional services while using the title “CPA,” “CPA firm,” 153 or any other title, designation, words, letters, abbreviations, 154 or device tending to indicate that the firm practices public 155 accounting in this state without a license issued under this 156 section only if: 157 (a)1.It performs such services through an individual with 158 practice privileges granted under s. 473.3141; and 159 (b)2.It can lawfully do so in the state where the 160 individual with practice privileges has his or her principal 161 place of business. 162 (4)(2)The board shall determine whether the firm or public 163 accountingsole proprietor, partnership, corporation, limited164liability company, or any otherfirm meets the requirements for 165 practice and, pending that determination, may certify to the 166 department the firm or public accounting firmpartnership,167corporation, or limited liability companyfor provisional 168 licensure. 169 (5)(3)Each license must be renewed every 2 years. Each 170 firm or public accountingsole proprietor, partnership,171corporation, limited liability company, or any otherfirm 172 licensed under this section must notify the department within 1 173 month after any change in the information contained in the 174 application on which its license is based. 175 Section 4. Paragraph (d) of subsection (1) of section 176 473.316, Florida Statutes, is amended to read: 177 473.316 Communications between the accountant and client 178 privileged.— 179 (1) For purposes of this section: 180 (d) A “quality review” is a study, appraisal, or review of 181 one or more aspects of the professional work of an accountant in 182 the practice of public accountancy which is conducted by a 183 professional organization for the purpose of evaluating quality 184 assurance required by professional standards, including a 185 quality assuranceor peerreview. The term includes a peer 186 review as defined in s. 473.3125. 187 Section 5. Paragraph (a) of subsection (1) and subsection 188 (4) of section 473.3125, Florida Statutes, are amended to read: 189 473.3125 Peer review.— 190 (1) As used in this section, the term: 191 (a) “Licensee” means a licensed firm or public accounting 192sole proprietor, partnership, corporation, limited liability193company, or any otherfirm as defined in s. 473.302(7) and 194 engaged in the practice of public accounting as defined in s. 195 473.302(8)(a) that is required to be licensed under s. 473.3101. 196 (4) Effective January 1, 2015, a licensed firm or public 197 accountingsole proprietor, partnership, corporation, limited198liability company, or otherfirm as defined in s. 473.302(7) and 199 licensed under s. 473.3101 and engaged in the practice of public 200 accounting as defined in s. 473.302(8)(a), except for the 201 performance of compilations and reviews as those terms are 202 defined by the board, must be enrolled in a peer review program. 203 Section 6. Paragraph (c) of subsection (1) of section 204 473.322, Florida Statutes, is amended to read: 205 473.322 Prohibitions; penalties.— 206 (1) A person may not knowingly: 207 (a) Practice public accounting unless the person is a 208 certified public accountant or a public accountant; 209 (b) Assume or use the titles or designations “certified 210 public accountant” or “public accountant” or the abbreviation 211 “C.P.A.” or any other title, designation, words, letters, 212 abbreviations, sign, card, or device tending to indicate that 213 the person holds a license to practice public accounting under 214 this chapter or the laws of any other state, territory, or 215 foreign jurisdiction, unless the person holds an active license 216 under this chapter or has the practice privileges pursuant to s. 217 473.3141; 218 (c) Perform or offer to perform any services described in 219 s. 473.302(8)(a) unless such person holds an active license 220 under this chapter and is a licensedauditfirm, provides such 221 services through a licensedauditfirm, or complies with ss. 222 473.3101 and 473.3141. This paragraph does not prohibit the 223 performance by persons other than certified public accountants 224 of other services involving the use of accounting skills, 225 including the preparation of tax returns and the preparation of 226 financial statements without expression of opinion thereon; 227 (d) Present as her or his own the license of another; 228 (e) Give false or forged evidence to the board or a member 229 thereof; 230 (f) Use or attempt to use a public accounting license that 231 has been suspended, revoked, or placed on inactive or delinquent 232 status; 233 (g) Employ unlicensed persons to practice public 234 accounting; or 235 (h) Conceal information relative to violations of this 236 chapter. 237 Section 7. This act shall take effect July 1, 2015.