05 LC 34
0140
Senate
Bill 55
By: Senators Seabaugh of the 28th and Balfour of the 9th
By: Senators Seabaugh of the 28th and Balfour of the 9th
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Chapter 3 of Title 43 of the Official Code of Georgia Annotated, relating
to accountants, so as to change the composition of the state board of
accountancy; to repeal certain provisions relating to registered public
accountants; to provide that public accountants shall upon application be
certificated as certified public accountants; to remove references to registered
public accountants; to change certain provisions relating to use of titles and
devices, false or fraudulent claims, and regulation of solicitation of
employment; to amend Chapter 40 of Title 43 of the Official Code of Georgia
Annotated, relating to real estate brokers and salespersons, so as to remove
references to registered public accountants; to amend Article 13 of Chapter 1 of
Title 7 of the Official Code of Georgia Annotated, relating to licensing of
mortgage lenders and mortgage brokers, so as to remove references to registered
public accountants; to amend Chapter 12 of Title 16 of the Official Code of
Georgia Annotated, relating to offenses against health and morals, so as to
remove references to registered public accountants; to provide for related
matters; to provide an effective date; to repeal conflicting laws; and for other
purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Chapter
3 of Title 43 of the Official Code of Georgia Annotated, relating to
accountants, is amended by striking subsection (b) of Code Section 43_3_3,
relating to the members of the State Board of Accountancy, and inserting in lieu
thereof a new subsection (b) to read as follows:
"(b)
The board shall consist of seven members, to be appointed by the Governor with
the approval of the Senate. Each member of the board shall be a resident of this
state.
Five
Six
members of the board shall be certified public accountants,
and one
member shall be a registered public
accountant, all of whom shall hold a
permit to practice public accounting issued under Code Section 43_3_24. One
member shall be appointed from the public at large and shall be a person to whom
neither this state nor any other state has ever issued a certificate,
registration, license, or permit to engage in the practice of public accounting.
The person
serving on the board on June 30, 2005, as a registered public accountant member
of the board shall serve the remainder of the term to which such person was
appointed as one of the certified public accountant members of the
board."
SECTION
2.
Said
chapter is further amended by striking Code Section 43_3_13, relating to
requirements for certificate of "registered public accountant," and inserting in
its place the following:
"43_3_13.
Notwithstanding
any other provision of this chapter, on and after July 1, 2005, each registered
public accountant who holds a live permit and who is in good standing shall upon
application be certificated as a certified public accountant. On and after July
1, 2005, the board shall not consider any application for a certificate of
registered public
accountant."
SECTION
3.
Said
chapter is further amended by repealing Code Section 43_3_14, relating to
examinations for registered public accountants, and inserting in its place the
following:
"43_3_14.
(a)
The board may provide, by regulation, for the general scope of the examination
described in paragraph (4) of subsection (a) of Code Section 43_3_13. The board
may approve the examination and obtain advice and assistance in providing for
and grading such examination and the division director, with the approval of the
board, may contract with third parties to perform administrative services with
respect to the examination as he or she deems appropriate.
(b)
As a prerequisite to sit for the examination, candidates shall meet the
education requirements provided for in subparagraph (a)(3)(A) of Code Section
43_3_13.
(c)
An applicant for the certificate of registered public accountant who has
successfully completed the examination provided for in paragraph (4) of
subsection (a) of Code Section 43_3_13 shall have no status as a registered
public accountant until he or she has the requisite education and experience and
has received his or her certificate as a registered public
accountant.
(d)
The board, by regulation, may provide for granting a credit to any applicant for
satisfactory completion of an examination in any one or more of the subjects
provided for by paragraph (4) of subsection (a) of Code Section 43_3_13 given by
the licensing authority in another jurisdiction. Such regulations shall include
such requirements as the board deems appropriate to ensure that any examination
approved as a basis for any such credit, in the judgment of the board, shall be
at least as thorough as the examination approved by the board at the time of the
granting of such credit.
(e)
The board, by regulation, may prescribe the time and conditions under which an
applicant may retain credit for passing a portion or portions of the examination
provided for in paragraph (4) of subsection (a) of Code Section
43_3_13.
(f)
Application for certification by persons who are not residents of this state
shall constitute the appointment of the Secretary of State as the agent for
service of process in any action or proceeding against such applicant arising
out of any transaction, activity, or operation connected with or incidental to
the practice of public accounting in this state by nonresident holders of
registered public accountant certificates
Reserved."
SECTION
4.
Said
chapter is further amended by repealing Code Section 43_3_16, relating to
certificate holder as "registered public accountant," and inserting in its place
the following:
"43_3_16.
Any
person who has received a certificate as a registered public accountant from the
board and who holds a live permit may be styled and known as a 'registered
public accountant.' The division director shall maintain a list of registered
public accountants; and, for this purpose, the board may provide by regulation a
procedure whereby all registered public accountants are required to register
with the board periodically
Reserved."
SECTION
5.
Said
chapter is further amended by repealing Code Section 43_3_18, relating to
reciprocity for registered public accountants, and inserting in its place the
following:
"43_3_18.
The
board, in its discretion, may waive the examination provided for in paragraph
(4) of subsection (a) of Code Section 43_3_13 and may issue a certificate as a
registered public accountant to any person who possesses the qualifications
specified in paragraphs (1) and (2) of subsection (a) of Code Section 43_3_13
and what the board determines to be the substantial equivalent of the
qualifications under paragraph (3) of subsection (a) of Code Section 43_3_13 and
who is a holder of a certificate as a registered public accountant, then in full
force and effect, issued under the laws of another state, provided that the
certificate held by such person was issued after an examination which, in the
judgment of the board, is the equivalent of the standard established by the
board for examinations administered pursuant to paragraph (4) of subsection (a)
of Code Section 43_3_13; and provided, further, that such privileges are
extended to citizens of this state by the state originally granting the
certificate
Reserved."
SECTION
6.
Said
chapter is further amended by repealing Code Section 43_3_19, relating to
persons holding registered public accountant certificates as of July 1, 1977,
and inserting in its place the following:
"43_3_19.
Persons
who hold registered public accountant certificates issued prior to July 1, 1977,
under the laws of this state shall not be required to undergo recertification
under this chapter but shall otherwise be subject to all applicable provisions
of this chapter. Such certificates issued prior to July 1, 1977, shall be
considered certificates issued under and subject to this chapter for all
purposes
Reserved."
SECTION
7.
Said
chapter is further amended by striking subsection (b) of Code Section 43_3_21,
relating to registration requirements for firms of public accountants or
certified public accountants; by redesignating subsections (c), (d), and (e) as
subsections (b), (c), and (d), respectively; and by striking subsection (a) and
inserting in its place the following:
"(a)
A firm practicing public accountancy in this state shall register with the board
as a firm of
certified
public accountants, provided it meets the following requirements:
(1)
Each partner, member, or shareholder of the firm shall be a certified
or
registered public accountant of some state
in good standing;
(2)
The firm shall be in compliance with all requirements and provisions of state
law governing the organizational form of the firm;
(3)
The firm shall comply with all regulations pertaining to firms registered with
the board; and
(4)
The resident manager of the office of the firm and each partner, member, or
shareholder thereof personally engaged within this state in the practice of
public accountancy shall be a certified
or
registered public accountant of this state
in good
standing."
SECTION
8.
Said
chapter is further amended by striking subsection (a) and paragraph (1) of
subsection (b) of Code Section 43_3_24, relating to issuance of permits to
practice accountancy and issuance of temporary permits to nonresidents, and
inserting in their place the following:
"(a)
A permit to engage in the practice of public accountancy in this state shall be
issued by the division director, at the direction of the board, to each person
who is certificated as a certified public accountant under Code Sections 43_3_6
through
43_3_12,
registered as a public accountant under Code Sections 43_3_13 through
43_3_19, or registered as a foreign
accountant under Code Section 43_3_20 who shall have furnished evidence,
satisfactory to the board, of compliance with the requirements of Code Section
43_3_25, and to individuals and firms registered under Code Section 43_3_21,
provided that such entities are maintained and registered as required under Code
Sections 43_3_21 and 43_3_23. There shall be a biennial permit fee in an amount
to be determined by the
board."
"(1)
An applicant for a temporary permit under this subsection shall show that he or
she is duly licensed and authorized to practice as a certified public accountant
or as a firm of certified public accountants or the equivalent in another state
or as a
registered public accountant or as a firm of registered public accountants or
the equivalent in another state and shall
give the name of each person who will be engaged in the practice of public
accounting in this state in the performance of the professional engagement which
is the subject of the
application;".
SECTION
9.
Said
chapter is further amended by striking subsection (a) of Code Section 43_3_25,
relating to continuing professional education requirements, and inserting in its
place the following:
"(a)
Every application for renewal of a live permit by any individual who is and has
been certificated as a certified public
accountant,
registered as a registered public
accountant, or registered as a foreign
accountant by this state for one year or more shall be accompanied or supported
by such evidence as the board shall prescribe of satisfactory completion of
continuing professional education as provided in this Code section, provided
that the board may relax or suspend requirements of continuing professional
education in instances where an applicant´s health requires it or in
instances of individual
hardship."
SECTION
10.
Said
chapter is further amended by striking the introductory language of subsection
(a) of Code Section 43_3_28, relating to revocation, suspension, or refusal to
renew certificate, registration, or permit and immunity, and inserting in its
place the following:
"(a)
After notice and hearing as provided in Code Section 43_3_30, the board may
revoke or suspend any certification issued under Code Sections 43_3_6 through
43_3_12 or a registration issued under
Code
Sections 43_3_13 through 43_3_19 or under
Code Section 43_3_20 or may revoke, suspend, or refuse to renew any live permit
or may censure the holder of any such permit for any cause which the board may
deem sufficient, including, without limiting the generality of the foregoing,
any one or any combination of the following
causes:".
SECTION
11.
Said
chapter is further amended by striking subsections (c) and (d) of Code Section
43_3_35, relating to use of titles or devices, false or fraudulent claims, and
regulation of solicitation of employment; by redesignating subsections (f), (g),
(h), and (i) as subsections (d), (e), (f), and (g), respectively; and by
striking subsection (e) and inserting in its place the following:
"(e)(c)
No individual, firm, or any other person or entity shall assume or use: (1) any
title or designation likely to be confused with 'certified public accountant,'
or 'public
accountant,' including, without limiting
the generality of the foregoing, 'certified accountant,' 'enrolled accountant,'
'licensed accountant,' 'licensed public accountant,' or 'registered accountant';
or (2) any abbreviation likely to be confused with
'C.P.A.,'
or
'P.A.,' including, without limiting the
generality of the foregoing, 'C.A.,' 'E.A.,' 'R.A.,' 'L.A.,' or 'L.P.A.,'
provided
that
nothing in this subsection shall be construed to prohibit the use of the
abbreviation 'P.A.' in accordance with Chapter 10 of Title 14, 'The Georgia
Professional Association Act,' or Chapter 7 of Title 14, the 'Georgia
Professional Corporation Act,' or any abbreviation authorized by Chapter 11 of
Title 14, the 'Georgia Limited Liability Company Act'; and, provided,
further, that a foreign accountant
registered under Code Section 43_3_20 who holds a live permit and all of whose
offices in this state for the practice of public accountancy are maintained and
registered as required under Code Sections 43_3_21 and 43_3_23 may use the title
under which he or she is generally known in his or her country, followed by the
name of the country from which he or she received his or her certificate,
license, or
degree."
SECTION
12.
Chapter
40 of Title 43 of the Official Code of Georgia Annotated, relating to real
estate brokers and salespersons, is amended by striking paragraph (14) of
subsection (a) of Code Section 43_40_29, relating to exceptions to operation of
chapter, and inserting in its place the following:
"(14)
A licensed certified public accountant
or
registered public accountant acting solely
as an incident to the practice of public
accounting."
SECTION
13.
Article
13 of Chapter 1 of Title 7 of the Official Code of Georgia Annotated, relating
to licensing of mortgage lenders and mortgage brokers, is amended by striking
paragraph (2) of Code Section 7_1_1000, relating to definitions, and inserting
in its place the following:
"(2)
'Audited financial statement' means the product of the examination of financial
statements in accordance with generally accepted auditing standards by an
independent certified public accountant
or by an
independent Georgia registered public accountant considered acceptable by the
department, which product consists of an
opinion on the financial statements indicating their conformity with generally
accepted accounting
principles."
SECTION
14.
Chapter
12 of Title 16 of the Official Code of Georgia Annotated, relating to offenses
against health and morals, is amended by striking subsection (j) of Code Section
16_12_22.1, relating to raffles operated by nonprofit, tax_exempt organizations,
and inserting in its place the following:
"(j)
On or before April 15 of each year, every nonprofit, tax_exempt organization
engaged in operating raffles shall file with the sheriff a report disclosing all
receipts and expenditures relating to the operation of raffles in the previous
year. The report shall be in addition to all other reports required by law. The
report shall be prepared and signed by a certified
or
registered public accountant competent to
prepare such a report and shall be deemed a public record subject to public
inspection."
SECTION
15.
Said
chapter is further amended by striking Code Section 16_12_59, relating to annual
report to be filed with the director of the Georgia Bureau of Investigation by
bingo game operators, and inserting in its place the following:
"16_12_59.
On
or before April 15 of each year, every nonprofit, tax_exempt organization
engaged in operating bingo games shall file with the director a report
disclosing all receipts and expenditures relating to the operation of bingo
games in the previous year. The report shall be in addition to all other
reports required by law. The report shall be prepared and signed by a certified
or
registered public accountant competent to
prepare such a report and shall be deemed a public record subject to public
inspection."
SECTION
16.
This
Act shall become effective on July 1, 2005.
SECTION
17.
All
laws and parts of laws in conflict with this Act are repealed.