House Study Bill 536 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED DEPARTMENT OF COMMERCE/PROFESSIONAL LICENSING AND REGULATION DIVISION BILL) A BILL FOR An Act relating to the practice of accounting and to the 1 organization and operation of the licensing boards included 2 within the professional licensure and regulation bureau of 3 the banking division in the department of commerce. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5305DP (14) 83 jr/rj

S.F. _____ H.F. _____ Section 1. Section 542.8, Code Supplement 2009, is amended 1 by adding the following new subsection: 2 NEW SUBSECTION . 22. The board, by rule, shall require as a 3 condition for renewal of a license under this section by any 4 license holder who performs compilation services for the public 5 other than through a licensed public accounting firm or a 6 certified public accounting firm, that such individual undergo, 7 no more frequently than once every three years, a peer review 8 conducted in such manner as the board shall by rule specify, 9 and such review shall include verification that such individual 10 has met the competency requirements set out in professional 11 standards for such services. 12 Sec. 2. Section 542.13, subsections 6 and 13, Code 13 Supplement 2009, are amended to read as follows: 14 6. A firm not holding a permit issued under section 542.8 15 shall not provide compilation services or assume or use the 16 title “licensed public accountants”, the abbreviation “LPAs”, 17 or any other title, designation, words, letters, abbreviation, 18 sign, card, or device tending to indicate that such firm is 19 composed of licensed public accountants. 20 13. An individual licensee shall not issue a report in 21 standard form upon a compilation of financial information 22 through any form of business that does not hold a permit issued 23 under section 542.7 or 542.8 unless the report discloses 24 the name of the business through which the individual is 25 issuing the report and the individual licensee does all of the 26 following: 27 a. Signs the compilation report identifying the individual 28 as a certified public accountant or licensed public accountant. 29 b. Meets competency requirements provided in applicable 30 standards. 31 c. Undergoes, no less frequently than once every three 32 years, a peer review conducted in a manner as specified by 33 the board. The review shall include verification that such 34 individual has met the competency requirements set out in 35 -1- LSB 5305DP (14) 83 jr/rj 1/ 3

S.F. _____ H.F. _____ professional standards for such services. 1 Sec. 3. Section 546.10, Code 2009, is amended by adding the 2 following new subsections: 3 NEW SUBSECTION . 10. Notwithstanding section 17A.6, 4 subsection 4, the licensing boards included within the bureau 5 pursuant to subsection 1 may adopt standards by reference to 6 another publication without providing a copy of the publication 7 to the administrative rules coordinator if the publication 8 containing the standards is readily accessible on the internet 9 at no cost and the internet site at which the publication may 10 be found is included in the administrative rules that adopt the 11 standard. 12 NEW SUBSECTION . 11. Renewal periods for all licenses 13 and certificates of the licensing boards included within the 14 bureau pursuant to subsection 1 may be annual or multiyear, as 15 provided by rule. 16 NEW SUBSECTION . 12. A quorum of a licensing board included 17 within the bureau pursuant to subsection 1 shall be a majority 18 of the members of the board and action may be taken upon a 19 majority vote of board members present at a meeting who are not 20 disqualified. 21 EXPLANATION 22 This bill generally relates to the practice of public 23 accounting. 24 The amendment to Code section 542.8 adds a provision 25 requiring peer review for individual licensed public 26 accountants similar to the requirement for peer review for 27 individual certified public accountants. 28 The amendments to Code section 542.13 treat certified public 29 accounting (CPA) firms and licensed public accounting (LPA) 30 firms in the same manner with respect to the authorization 31 to provide compilation services. The amendments also add a 32 reference to LPA firms in a provision outlining the disclosures 33 required when a certified public accountant or licensed public 34 accountant issues a compilation report other than through a CPA 35 -2- LSB 5305DP (14) 83 jr/rj 2/ 3

S.F. _____ H.F. _____ firm. 1 The subsections added to Code section 546.10 relate 2 to the professional licensing boards. A new subsection 3 allows the boards to adopt standards by reference to another 4 publication without providing a copy of the publication to the 5 administrative rules coordinator if the publication containing 6 the standards is readily accessible on the internet at no cost 7 and the internet site at which the publication may be found is 8 included in the administrative rules that adopt the standard. 9 Another new subsection sets quorum requirements for all the 10 boards as a majority of the members of the board and allows 11 action to be taken upon a majority vote of board members 12 present at a meeting who are not disqualified. 13 -3- LSB 5305DP (14) 83 jr/rj 3/ 3