Senate
Study
Bill
3017
-
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
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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
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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
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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.
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