HSB 536 (LSB 5305DP (14) 83)

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 organization and operation of the licensing boards included within the professional licensure and regulation bureau of the banking division in the department of commerce.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 542.8, Code Supplement 2009, is amended by adding the following new subsection:
   NEW SUBSECTION.  22.  The board, by rule, shall require as a condition for renewal of a license under this section by any license holder who performs compilation services for the public other than through a licensed public accounting firm or a certified public accounting firm, that such individual undergo, no more frequently than once every three years, a peer review conducted in such manner as the board shall by rule specify, and such review shall include verification that such individual has met the competency requirements set out in professional standards for such services.
    Sec. 2.  Section 542.13, subsections 6 and 13, Code Supplement 2009, are amended to read as follows:
   6.  A firm not holding a permit issued under section 542.8 shall not provide compilation services or assume or use the title “licensed public accountants”, the abbreviation “LPAs”, or any other title, designation, words, letters, abbreviation, sign, card, or device tending to indicate that such firm is composed of licensed public accountants.
   13.  An individual licensee shall not issue a report in standard form upon a compilation of financial information through any form of business that does not hold a permit issued under section 542.7 or 542.8 unless the report discloses the name of the business through which the individual is issuing the report and the individual licensee does all of the following:
   a.  Signs the compilation report identifying the individual as a certified public accountant or licensed public accountant.
   b.  Meets competency requirements provided in applicable standards.
   c.  Undergoes, no less frequently than once every three years, a peer review conducted in a manner as specified by the board. The review shall include verification that such individual has met the competency requirements set out in professional standards for such services.
    Sec. 3.  Section 546.10, Code 2009, is amended by adding the following new subsections:
   NEW SUBSECTION.  10.  Notwithstanding section 17A.6, subsection 4, the licensing boards included within the bureau pursuant to subsection 1 may adopt standards by reference to another publication without providing a copy of the publication to the administrative rules coordinator if the publication containing the standards is readily accessible on the internet at no cost and the internet site at which the publication may be found is included in the administrative rules that adopt the standard.
   NEW SUBSECTION.  11.  Renewal periods for all licenses and certificates of the licensing boards included within the bureau pursuant to subsection 1 may be annual or multiyear, as provided by rule.
   NEW SUBSECTION.  12.  A quorum of a licensing board included within the bureau pursuant to subsection 1 shall be a majority of the members of the board and action may be taken upon a majority vote of board members present at a meeting who are not disqualified.
EXPLANATION
   This bill generally relates to the practice of public accounting.
   The amendment to Code section 542.8 adds a provision requiring peer review for individual licensed public accountants similar to the requirement for peer review for individual certified public accountants.
   The amendments to Code section 542.13 treat certified public accounting (CPA) firms and licensed public accounting (LPA) firms in the same manner with respect to the authorization to provide compilation services. The amendments also add a reference to LPA firms in a provision outlining the disclosures required when a certified public accountant or licensed public accountant issues a compilation report other than through a CPA firm.
   The subsections added to Code section 546.10 relate to the professional licensing boards. A new subsection allows the boards to adopt standards by reference to another publication without providing a copy of the publication to the administrative rules coordinator if the publication containing the standards is readily accessible on the internet at no cost and the internet site at which the publication may be found is included in the administrative rules that adopt the standard. 
   Another new subsection sets quorum requirements for all the boards as a majority of the members of the board and allows action to be taken upon a majority vote of board members present at a meeting who are not disqualified.