Educational requirements for taking the accounting examination or receiving a certified public accountant certificate; continuing education requirements for accounting license renewal; data-sharing programs related to accountants; peer reviews for certified public accounting firms; modifying various administrative rules promulgated by the Accounting Examining Board relating to accounting; and granting rule-making authority. (FE)

The current rules of the board specify numbers of semester hours that an applicant for a CPA certificate must have completed, including at least 24 semester hours in accounting at the undergraduate level or 15 semester hours at the graduate level, including at least one course in each of six specified subjects, and at least 24 semester hours in business courses other than accounting courses at the undergraduate or graduate level, including at least one course in each of six specified subjects.

This bill modifies the rules of the board specifying these semester hours and course subjects required in order to be granted a CPA certificate or to take the CPA examination, as follows:

1. The bill specifies methods for satisfying the 150 hours requirement for obtaining a CPA certificate. The methods differ depending on the degree received by the applicant and how the educational program, department, or educational institution from which the applicant earned the degree is accredited.

2. The bill provides that a person may satisfy the 120 hours requirement for taking the CPA examination if the person already satisfies the 150 hours requirement for obtaining a CPA certificate described above, the person otherwise satisfies the course content and semester hours required for a CPA certificate, or the person has completed course work that the board determines is reasonably equivalent to those requirements.

The bill also allows the board to promulgate rules to allow for certain military service to count toward the 150 hours requirement.

Additionally, the bill requires the board to promulgate rules establishing continuing education requirements for the renewal of licenses held by individuals to practice as certified public accountants. The bill provides that the board may not require an individual to complete more than 80 continuing education credits during the two-year period between license renewal dates. For continuing education credits earned based on the amount of time spent participating in an activity, one credit is earned for every 50 minutes engaged in an eligible activity. The bill allows up to one-half of the amount of continuing education credits required by the board by rule to be completed by various informal, self-directed learning activities. Under the bill, the earliest license renewal date for which individuals are subject to the continuing education requirements is December 15, 2021. Under current law, continuing education is not required for the renewal of certified public accountant licenses held by individuals.

Current law requires a CPA firm, as a condition of renewal of its license, to undergo a peer review at least once every three years. Current law provides that a person approved by the board to conduct peer reviews may not disclose any information obtained or document produced during the course of or as a result of a peer review unless the firm undergoing the review consents to the disclosure. The bill allows the board to require an individual CPA or a CPA firm to provide certain peer review documents to the board, and allows a CPA or firm to comply with such a directive by submitting the requested documents to the board or by allowing the peer review program administrator to make the documents available to the board through the Facilitated State Board Access program operated by the American Institute of Certified Public Accountants (FSBA). In addition, the bill allows the board to make documents submitted to the board available to the FSBA and provides that information or data obtained by the board through the FSBA is not subject to disclosure under the public records law, except as the board otherwise provides by rule.

Finally, the bill requires the board to participate in data-sharing programs operated or otherwise sponsored by the National Association of State Boards of Accountancy and to share information or data regarding current or former licensees as needed in order to participate in those programs. The bill provides that information or data obtained by the board through such a program is not subject to disclosure under the public records law, except as the board otherwise provides by rule.