| 1 | A bill to be entitled |
| 2 | An act relating to public accountancy; creating s. |
| 3 | 473.3066, F.S.; authorizing the Board of Accountancy to |
| 4 | establish a peer review oversight committee; providing for |
| 5 | membership and duties of the oversight committee; |
| 6 | requiring the board to adopt rules under certain |
| 7 | circumstances; amending s. 473.311, F.S.; revising |
| 8 | licensure renewal requirements for firms engaged in |
| 9 | certain aspects of the practice of public accounting; |
| 10 | requiring such firms to comply with certain peer review |
| 11 | requirements; providing an exception; creating s. |
| 12 | 473.3125, F.S.; defining terms for purposes of peer review |
| 13 | requirements; requiring firms engaged in certain aspects |
| 14 | of the practice of public accounting to enroll in peer |
| 15 | review programs and undergo peer reviews; providing for |
| 16 | the frequency of peer reviews; providing exceptions; |
| 17 | requiring firms that fail a specified number of peer |
| 18 | reviews to submit certain documentation to the board; |
| 19 | requiring the board to establish minimum standards for |
| 20 | peer review programs; providing for the approval of peer |
| 21 | review administering organizations; requiring peer review |
| 22 | administering organizations to submit certain information |
| 23 | to the board; authorizing the board to withdraw approval |
| 24 | of peer review administering organizations under certain |
| 25 | circumstances; requiring the board to adopt rules; |
| 26 | limiting the liability of certain persons relating to the |
| 27 | performance of certain services and duties of peer review |
| 28 | administering organizations; providing that the |
| 29 | proceedings, records, and workpapers of peer review |
| 30 | administering organizations are confidential and |
| 31 | privileged; providing exceptions; prohibiting persons |
| 32 | involved in peer reviews from testifying; amending s. |
| 33 | 473.323, F.S.; providing additional grounds for the |
| 34 | discipline of firms engaged in certain aspects of the |
| 35 | practice of public accounting, to which penalties apply; |
| 36 | revising requirements for reissuance of licenses after |
| 37 | compliance with disciplinary final orders; conforming |
| 38 | provisions; providing an effective date. |
| 39 |
|
| 40 | Be It Enacted by the Legislature of the State of Florida: |
| 41 |
|
| 42 | Section 1. Section 473.3066, Florida Statutes, is created |
| 43 | to read: |
| 44 | 473.3066 Peer review oversight committee.- |
| 45 | (1) The board may establish a peer review oversight |
| 46 | committee to oversee the peer review requirements of s. |
| 47 | 473.3125. |
| 48 | (2) If the board establishes the peer review oversight |
| 49 | committee, the board shall adopt rules providing for the |
| 50 | qualifications, appointment, and terms of committee members as |
| 51 | follows: |
| 52 | (a) The peer review oversight committee shall be composed |
| 53 | of five or fewer members appointed by the board. |
| 54 | (b) Each committee member must hold a valid license as a |
| 55 | Florida certified public accountant. |
| 56 | (c) Each committee member or his or her firm must have |
| 57 | undergone a peer review and received a review rating of "pass" |
| 58 | on the most recent peer review. |
| 59 | (d) A committee member may not be a member of any state |
| 60 | accountancy board, be a member of another state accountancy |
| 61 | board committee, or perform any enforcement-related work for a |
| 62 | state accountancy board. |
| 63 | (e) Committee members shall serve for terms not to exceed |
| 64 | 3 years, except that the board, to establish staggered terms, |
| 65 | may appoint members to initial terms that are shorter than the |
| 66 | terms adopted by rule. The board shall fill the vacancy of a |
| 67 | committee member for the unexpired portion of the member's term |
| 68 | in the same manner as the original appointment. |
| 69 | (f) Committee members shall serve without compensation and |
| 70 | are not entitled to reimbursement of per diem or travel |
| 71 | expenses. |
| 72 | (3) The rules, if adopted, shall also provide for the |
| 73 | duties of the peer review oversight committee, which may |
| 74 | include, but are not limited to: |
| 75 | (a) Providing oversight for peer review programs and peer |
| 76 | review administering organizations. |
| 77 | (b) Periodically reporting to the board on the |
| 78 | effectiveness of peer review programs and providing a list of |
| 79 | licensees that participate in the programs. |
| 80 | (c) Performing other duties relating to oversight of peer |
| 81 | review programs. |
| 82 | Section 2. Section 473.311, Florida Statutes, is amended |
| 83 | to read: |
| 84 | 473.311 Renewal of license.- |
| 85 | (1) The department shall renew a license issued under s. |
| 86 | 473.308 upon receipt of the renewal application and fee and upon |
| 87 | certification by the board that the Florida certified public |
| 88 | accountant has satisfactorily completed the continuing education |
| 89 | requirements of s. 473.312. |
| 90 | (2) Effective January 1, 2015, the department shall renew |
| 91 | a license issued under s. 473.3101 upon certification by the |
| 92 | board that the sole proprietor, partnership, corporation, |
| 93 | limited liability company, or other firm engaged in the practice |
| 94 | of public accounting as defined in s. 473.302(8)(a) has |
| 95 | satisfactorily complied with the peer review requirements of s. |
| 96 | 473.3125 or that the board has extended the time to comply with |
| 97 | the peer review requirements. |
| 98 | (3)(2) The department shall adopt rules establishing a |
| 99 | procedure for the biennial renewal of licenses issued under ss. |
| 100 | 473.308 and 473.3101. |
| 101 | Section 3. Section 473.3125, Florida Statutes, is created |
| 102 | to read: |
| 103 | 473.3125 Peer review.- |
| 104 | (1) As used in this section, the term: |
| 105 | (a) "Licensee" means a sole proprietor, partnership, |
| 106 | corporation, limited liability company, or any other firm |
| 107 | engaged in the practice of public accounting as defined in s. |
| 108 | 473.302(8)(a) which is required to be licensed under s. |
| 109 | 473.3101. |
| 110 | (b) "Peer review" means the study, appraisal, or review by |
| 111 | one or more independent certified public accountants of one or |
| 112 | more aspects of the professional work of a licensee. |
| 113 | (2)(a) Except as otherwise provided in paragraph (b) or |
| 114 | paragraph (c), a licensee must: |
| 115 | 1. Enroll in the peer review program of a peer review |
| 116 | administering organization approved by the board; and |
| 117 | 2. Undergo a complete peer review at least once every 3 |
| 118 | years, which is performed in the manner prescribed by this |
| 119 | section and rules adopted by the board under this section and |
| 120 | for which a peer review report is submitted to and accepted by |
| 121 | the peer review administering organization. |
| 122 | (b) A licensee is not required to enroll in a peer review |
| 123 | program or undergo a peer review if the licensee does not engage |
| 124 | in the practice of public accounting as defined in s. |
| 125 | 473.302(8)(a). |
| 126 | (c) A licensee that is licensed for less than 18 months |
| 127 | must enroll in a peer review program but is not required to |
| 128 | undergo a peer review. |
| 129 | (d) A licensee that receives a review rating of "fail" on |
| 130 | two consecutive peer reviews must submit to the board any |
| 131 | documentation requested by the board relating to the peer |
| 132 | reviews for which the licensee received a review rating of |
| 133 | "fail." |
| 134 | (3)(a) The board shall adopt rules establishing minimum |
| 135 | standards for peer review programs, including, but not limited |
| 136 | to, standards for administering, performing, and reporting peer |
| 137 | reviews. The board shall also adopt rules establishing minimum |
| 138 | criteria for the board's approval of one or more peer review |
| 139 | administering organizations to facilitate and administer peer |
| 140 | review programs. |
| 141 | (b) The rules shall require a peer review administering |
| 142 | organization to submit to the board a written summary of the |
| 143 | organization's peer review program, including a description of |
| 144 | its entire peer review process; the organization's standards for |
| 145 | administering, performing, and reporting peer reviews; oversight |
| 146 | procedures; training requirements; and support materials. |
| 147 | (c) The board may approve a peer review administering |
| 148 | organization, if: |
| 149 | 1. The organization meets or exceeds the board's minimum |
| 150 | criteria for the approval of peer review administering |
| 151 | organizations. |
| 152 | 2. The organization's peer review program meets or exceeds |
| 153 | the board's minimum standards for peer review programs. |
| 154 | 3. The organization demonstrates the ability to administer |
| 155 | its peer review program in the manner described in its written |
| 156 | summary and to comply with the board's minimum standards for |
| 157 | peer review programs. |
| 158 | (d) The board may withdraw its approval of a peer review |
| 159 | administering organization if the organization fails to comply |
| 160 | with this section or rules adopted by the board under this |
| 161 | section. |
| 162 | (4) A certified public accountant or other person |
| 163 | appointed or authorized to perform administrative services for a |
| 164 | peer review administering organization is immune from civil |
| 165 | liability for furnishing information, data, reports, or records |
| 166 | to the peer review administering organization or for damages |
| 167 | resulting from any decision, opinion, action, or proceeding |
| 168 | rendered, entered, or acted upon by the peer review |
| 169 | administering organization which is undertaken or performed |
| 170 | within the scope or function of the duties of the peer review |
| 171 | administering organization. |
| 172 | (5) The proceedings, records, and workpapers of a peer |
| 173 | review administering organization are privileged, confidential, |
| 174 | and not subject to discovery, subpoena, or other means of legal |
| 175 | process or to introduction into evidence in a civil action or |
| 176 | arbitration proceeding. A person who is involved in a peer |
| 177 | review may not testify in a civil action or arbitration |
| 178 | proceeding as to any matter produced, presented, disclosed, or |
| 179 | discussed during or in connection with the peer review or as to |
| 180 | any finding, recommendation, evaluation, opinion, or other |
| 181 | action of the peer review administering organization. Public |
| 182 | records and materials prepared for a particular engagement are |
| 183 | not privileged merely because they were presented or considered |
| 184 | as part of a peer review. This privilege does not apply to any |
| 185 | dispute between a peer review administering organization and the |
| 186 | licensee subject to a review arising from the performance of the |
| 187 | peer review. |
| 188 | Section 4. Section 473.323, Florida Statutes, is amended |
| 189 | to read: |
| 190 | 473.323 Disciplinary proceedings.- |
| 191 | (1) The following acts constitute grounds for which The |
| 192 | disciplinary actions in subsection (3) may be taken against any |
| 193 | certified public accountant or firm that: |
| 194 | (a) Violates Violation of any provision of s. 455.227(1) |
| 195 | or any other provision of this chapter. |
| 196 | (b) Attempts Attempting to procure a license to practice |
| 197 | public accounting by bribery or fraudulent misrepresentations. |
| 198 | (c) Has Having a license to practice public accounting |
| 199 | revoked, suspended, or otherwise acted against, including the |
| 200 | denial of licensure, by the licensing authority of another |
| 201 | state, territory, or country. |
| 202 | (d) Is Being convicted or found guilty of, or enters |
| 203 | entering a plea of nolo contendere to, regardless of |
| 204 | adjudication, a crime in any jurisdiction which directly relates |
| 205 | to the practice of public accounting or the ability to practice |
| 206 | public accounting. |
| 207 | (e) Makes Making or files filing a report or record that |
| 208 | the certified public accountant or firm knows to be false, |
| 209 | willfully fails failing to file a report or record required by |
| 210 | state or federal law, willfully impedes impeding or obstructs |
| 211 | obstructing such filing, or induces inducing another person to |
| 212 | impede or obstruct such filing. Such reports or records include |
| 213 | only those that are signed in the capacity of a certified public |
| 214 | accountant. |
| 215 | (f) Advertises Advertising goods or services in a manner |
| 216 | that is fraudulent, false, deceptive, or misleading in form or |
| 217 | content. |
| 218 | (g) Commits Committing an act of fraud or deceit, or of |
| 219 | negligence, incompetency, or misconduct, in the practice of |
| 220 | public accounting. |
| 221 | (h) Violates Violation of any rule adopted under pursuant |
| 222 | to this chapter or chapter 455. |
| 223 | (i) Practices public accounting with Practicing on a |
| 224 | revoked, suspended, inactive, or delinquent license. |
| 225 | (j) Has Suspension or revocation of the right to practice |
| 226 | public accounting suspended or revoked by before any state or |
| 227 | federal agency. |
| 228 | (k) Performs Performance of any fraudulent act in any |
| 229 | jurisdiction while holding a license to practice public |
| 230 | accounting in this state or while using practice privileges in |
| 231 | this state. |
| 232 | (l) Fails Failing to maintain a good moral character as |
| 233 | provided in s. 473.308 while applying for licensure, or while |
| 234 | licensed in this state, or while using practice privileges under |
| 235 | pursuant to s. 473.3141. |
| 236 | (m) Fails Failing to provide any written disclosure to a |
| 237 | client or the public which is required by this chapter or rule |
| 238 | adopted by of the board. |
| 239 | (n) Has Having the same or equivalent practice privileges |
| 240 | of a Florida certified public accountant or firm revoked, |
| 241 | suspended, or otherwise acted against by the licensing authority |
| 242 | of another state, territory, or country as a result of activity |
| 243 | in that jurisdiction which would have subjected the Florida |
| 244 | certified public accountant or firm to discipline in this state. |
| 245 |
|
| 246 | (2) The board shall specify, by rule, what acts or omissions |
| 247 | constitute a violation of this subsection (1). |
| 248 | (2) The disciplinary actions in subsection (3) may be |
| 249 | taken against any licensed audit firm or public accounting firm |
| 250 | licensed under s. 473.3101 engaged in the practice of public |
| 251 | accounting as defined in s. 473.302(8)(a) that: |
| 252 | (a) Fails to enroll in a peer review program or undergo a |
| 253 | peer review as required under s. 473.3125. |
| 254 | (b) Engages in material noncooperation with a peer review |
| 255 | administering organization approved by the board under s. |
| 256 | 473.3125. |
| 257 | (3) When the board finds any certified public accountant |
| 258 | or firm guilty of any of the grounds set forth in subsection |
| 259 | (1), or finds any licensed audit firm or public accounting firm |
| 260 | licensed under s. 473.3101 engaged in the practice of public |
| 261 | accounting as defined in s. 473.302(8)(a) guilty of any of the |
| 262 | grounds set forth in subsection (2), the board it may enter an |
| 263 | order 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 |
| 266 | accountant or licensed audit firm's or public accounting firm's |
| 267 | license 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 |
| 272 | probation for a period of time and subject to such conditions as |
| 273 | the board may specify, including requiring the certified public |
| 274 | accountant to attend continuing education courses or to work |
| 275 | under the supervision of another certified public accountant |
| 276 | licensee. |
| 277 | (f) Restriction of the authorized scope of practice by the |
| 278 | certified public accountant. |
| 279 | (4) The department shall, reissue the license of a |
| 280 | disciplined licensee upon certification by the board that a |
| 281 | certified public accountant, licensed audit firm, or public |
| 282 | accounting firm whose license was subject to discipline the |
| 283 | disciplined licensee has complied with all of the terms and |
| 284 | conditions set forth in the final order, reissue the license |
| 285 | under s. 473.311. |
| 286 | Section 5. This act shall take effect July 1, 2011. |