Report Title:

Certified Public Accountants; Approved Peer Review

Description:

Requires an approved peer review for certain certified public accountant firms to practice in Hawaii.

THE SENATE	S.B. NO.	2452
TWENTY-FOURTH LEGISLATURE, 2008
STATE OF HAWAII

A BILL FOR AN ACT

relating to certified public accountants.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The purpose of this Act is to require peer review as a condition for renewal for certain certified public accountant firms and the firm's permit to practice public accountancy in this State.

     SECTION 2.  Section 466-3, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

     ""Approved peer review program" means a peer review program that is approved by the board, in accordance with procedures and rules established by the board."

     SECTION 3.  Section 466-4, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

     "(d)  In addition to any other powers and duties authorized by law, the board, in accordance with chapter 91 shall:

     (1)  Initiate investigations and hearings, either upon complaint or on its own motion on any matter involving the conduct of certified public accountants, public accountants, or firms, or the violation of any of the provisions of this chapter or the rules of the board;

     (2)  Adopt, amend, and repeal rules and procedures governing the administration and enforcement of this chapter and the conduct of the licensees, as it deems appropriate to establish and maintain high standards of competence and integrity in the practice of public accountancy[;].  The rules and procedures may provide that a firm, which does not provide attest services upon certification of that fact in writing, may thereupon be exempted from the peer review requirement.  A firm with its primary office outside this State may satisfy the peer review requirement by providing satisfactory evidence of a peer review conducted outside this State;

     (3)  Grant, deny, suspend, or revoke licenses that are authorized by this chapter and impose such conditions as may be necessary in connection with the granting, denial, suspension, or revocation of licenses;

     (4)  Prescribe the proof to be furnished for the issuance of a duplicate license in place of one alleged to have been lost or destroyed, including a requirement for any indemnity deemed appropriate to the case; and

     (5)  Grant, renew, forfeit and restore permits to practice that are authorized by this chapter and impose such conditions as may be necessary in connection with the granting, renewal, forfeiture and restoration of permits."

     SECTION 3.  Section 466-7, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  An applicant for the initial issuance or renewal of a permit shall have:

     (1)  A valid license;

     (2)  Completed continuing professional education hours, the content of which shall be specified by the board which may provide for special consideration by the board to applicants for permit renewal when, in the judgment of the board, full compliance with all requirements of continuing education cannot reasonably be met;

(3) Completed an approved peer review program in accordance with rules and procedures adopted by the board; provided that the rules shall not require a peer review prior to the initial issuance of an applicant's permit to practice;

    [(3)] (4)  Completed an application; and

    [(4)] (5)  Paid appropriate fees and assessments."

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on January 1, 2009.

INTRODUCED BY:

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