requires two-thirds majority vote (§§ 1, 3, 4)
S.B. 512
Senate Bill No. 512–Committee on Commerce and Labor
March 26, 2001
____________
Referred to Committee on Commerce and Labor
SUMMARY—Revises provisions relating to accountants. (BDR 54‑1208)
FISCAL NOTE: Effect on Local Government: No.
~
EXPLANATION
– Matter in bolded italics is new; matter
between brackets [omitted material] is material to be omitted.
Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
1-1 Section 1. NRS 628.280 is hereby amended to read as follows:
1-2 628.280 1. The board shall charge each candidate for a certificate of
1-3 certified public accountant a fee to be determined by the board by
1-4 regulation for [the] :
1-5 (a) The initial examination prescribed by the board pursuant to NRS
1-6 628.190[.
1-7 2. Fees for reexaminations under NRS 628.190 must also be charged
1-8 by the board in amounts determined by it by regulation] or for each section
1-9 of the examination in which the candidate is reexamined[.
1-10 3.] ; and
1-11 (b) The review and inspection of his examination paper.
1-12 2. The applicable [fee] fees must be paid by the candidate at the time
1-13 he applies for examination or reexamination.
1-14 [4.] 3. The board shall charge [each candidate for a certificate of
1-15 certified public accountant] a fee to be determined by the board by
1-16 regulation for [review and inspection of his examination paper.]
1-17 administering the examination prescribed by the board pursuant to NRS
1-18 628.190 to a person who is a candidate for a certificate as a certified
1-19 public accountant in another state or jurisdiction of the United States
2-1 and requests that the board administer the examination to him in this
2-2 state.
2-3 Sec. 2. NRS 628.310 is hereby amended to read as follows:
2-4 628.310 1. The board may waive the examination, the requirements
2-5 for education or the requirements for experience, or any combination
2-6 thereof, required under NRS 628.190, and may issue a certificate as a
2-7 certified public accountant to any person who is the holder of a certificate
2-8 as a certified public accountant then in effect issued under the laws of any
2-9 state or other jurisdiction of the United States approved by the board,
2-10 constituting a recognized qualification for the practice of public accounting
2-11 comparable to that of a certified public accountant of this state, if:
2-12 (a) The person has passed an examination that is substantially the same
2-13 as the examination conducted pursuant to NRS 628.230 with a grade that
2-14 would have been a passing grade in this state on the date on which he
2-15 received his original certificate;
2-16 (b) The person has experience in the practice of public accountancy,
2-17 either as a certified public accountant or as a staff accountant employed by
2-18 or under the direct supervision of a person who is a certified public
2-19 accountant, while holding a certificate as a certified public accountant for
2-20 more than 4 of the 10 years immediately preceding his making application
2-21 pursuant to this chapter; and
2-22 (c) The requirements for education of the state or other jurisdiction from
2-23 which the person received his original certificate [were substantially
2-24 equivalent to] are determined by the board to satisfy the requirements for
2-25 education of this state . [on the date on which the person received his
2-26 original certificate.]
2-27 2. The board may waive the examination, the requirements for
2-28 education or the requirements for experience, or any combination thereof,
2-29 under NRS 628.190, and may issue a certificate as a certified public
2-30 accountant to any person who is the holder of an equivalent certificate then
2-31 in effect issued by a foreign country if:
2-32 (a) Persons who are certified as public accountants in this state are
2-33 granted similar privileges by the foreign country in which the applicant is
2-34 certified;
2-35 (b) The applicant’s certificate:
2-36 (1) Was issued by the appropriate authority that regulates the practice
2-37 of public accountancy in the foreign country in which the certificate was
2-38 issued;
2-39 (2) Has not expired or been revoked or suspended; and
2-40 (3) Authorizes the applicant to issue reports upon financial
2-41 statements;
2-42 (c) The requirements for education and examination of the regulatory
2-43 authority of the foreign country were substantially equivalent to the
2-44 requirements for education and examination of this state on the date on
2-45 which the applicant received his certificate;
2-46 (d) The applicant:
2-47 (1) Complied with requirements for experience in the foreign country
2-48 in which the certificate was issued that are substantially equivalent to the
2-49 requirements set forth in NRS 628.200; or
3-1 (2) Has completed in this state at least 4 years of public accounting
3-2 experience, or equivalent experience determined to be appropriate by the
3-3 board, within the 10 years immediately preceding his making application
3-4 for certification in this state;
3-5 (e) The applicant has passed a written examination on national
3-6 standards for public accounting and ethics that is acceptable to the board;
3-7 and
3-8 (f) The applicant submits with his application a list of all jurisdictions in
3-9 which he has applied for and received a certificate to practice public
3-10 accounting.
3-11 3. A person who is granted a certificate as a certified public accountant
3-12 pursuant to subsection 2 shall notify the board, in writing, within 30 days
3-13 after:
3-14 (a) He is issued an equivalent certificate to practice public accounting
3-15 by another jurisdiction or is denied the issuance of such a certificate;
3-16 (b) A certificate to practice public accounting issued to him by another
3-17 jurisdiction is revoked or suspended; or
3-18 (c) Another jurisdiction in which he is certified to practice public
3-19 accounting commences any type of disciplinary action against him.
3-20 Sec. 3. NRS 628.370 is hereby amended to read as follows:
3-21 628.370 1. Each office established or maintained in this state for the
3-22 practice of public accounting in this state by a certified public accountant
3-23 or a partnership, corporation or limited-liability company composed of
3-24 certified public accountants, or by a registered public accountant or a
3-25 partnership, corporation or limited-liability company composed of
3-26 registered public accountants, including an office established or
3-27 maintained under a fictitious name, must be registered annually under this
3-28 chapter with the board. The board may charge a fee for the registration of
3-29 an office in an amount set by regulation.
3-30 2. Each office must be under the supervision of a manager, who may
3-31 be a partner, shareholder, member or employee holding a certificate and a
3-32 live permit.
3-33 3. The board shall by regulation prescribe the procedure to be followed
3-34 in registering offices.
3-35 Sec. 4. NRS 628.380 is hereby amended to read as follows:
3-36 628.380 1. Permits to engage in the practice of public accounting in
3-37 this state must be issued by the board to holders of the certificate of
3-38 certified public accountant issued under NRS 628.190 to 628.310,
3-39 inclusive, and to registered public accountants registered or licensed
3-40 pursuant to NRS 628.350, if all offices of the [certificate] holder of a
3-41 certificate or registrant are maintained and registered as required under
3-42 NRS 628.370, and if the [certificate] holder of a certificate or registrant
3-43 has complied with the continuing education requirements provided in this
3-44 chapter and in the board’s regulations.
3-45 2. All permits expire on December 31 of each year and may be
3-46 renewed annually for a period of 1 year by [certificate] holders of
3-47 certificates and registrants in good standing upon payment of an annual
3-48 renewal fee set by the board by regulation.
4-1 3. Failure of a [certificate] holder of a certificate or registrant to apply
4-2 for an annual permit to practice deprives him of the right to a permit,
4-3 unless the board, in its discretion, determines that the failure was caused by
4-4 excusable neglect.
4-5 4. The board shall adopt a regulation specifying the fee for [issuance
4-6 or] :
4-7 (a) The issuance of a permit more than 30 days after a certificate or
4-8 registration is granted; and
4-9 (b) The renewal of a permit [more than 1 year after the expiration
of a previous permit or granting of a certificate or registration.] after
4-10 January 31 of each year.
4-11 5. The board may provide by regulation for the placing of certificates
4-12 and registrations [in] on a retired or inactive status. The regulation may
4-13 provide for a procedure for applying for retired or inactive status and for
4-14 applying to return to active status, and must specify fees, if any, to
4-15 accompany the applications.
4-16 Sec. 5. NRS 628.390 is hereby amended to read as follows:
4-17 628.390 1. After giving notice and conducting a hearing, the board
4-18 may revoke, or may suspend for a period of not more than 5 years, any
4-19 certificate issued under NRS 628.190 to 628.310, inclusive, any
4-20 registration or license granted to a registered public accountant under NRS
4-21 628.350, or any registration of a partnership, corporation, limited-liability
4-22 company or office, or may revoke, suspend or refuse to renew any permit
4-23 issued under NRS 628.380, or may censure the holder of any permit, for
4-24 any one or any combination of the following causes:
4-25 (a) Fraud or deceit in obtaining a certificate , as certified public
4-26 accountant, or in obtaining registration or a license as a public accountant
4-27 under this chapter, or in obtaining a permit to practice public accounting
4-28 under this chapter.
4-29 (b) Dishonesty, fraud or gross negligence by a certified or registered
4-30 public accountant in the practice of public accounting or, if not in the
4-31 practice of public accounting, of a kind which adversely affects the ability
4-32 to perform public accounting.
4-33 (c) Violation of any of the provisions of this chapter.
4-34 (d) Violation of a regulation or rule of professional conduct adopted by
4-35 the board under the authority granted by this chapter.
4-36 (e) Conviction of a felony under the laws of any state or of the United
4-37 States.
4-38 (f) Conviction of any crime, an element of which is dishonesty or fraud,
4-39 under the laws of any state or of the United States.
4-40 (g) Cancellation, revocation, suspension or refusal to renew authority to
4-41 practice as a certified public accountant or a registered public accountant
4-42 by any other state, for any cause other than failure to pay an annual
4-43 registration fee or to comply with requirements for continuing education or
4-44 review of his practice in the other state.
4-45 (h) Suspension or revocation of the right to practice before any state or
4-46 federal agency.
4-47 (i) Unless the person has been placed on inactive or retired status,
4-48 failure to obtain an annual permit under NRS 628.380, within:
5-1 (1) [One year] Sixty days after the expiration date of the permit to
5-2 practice last obtained or renewed by the [certificate] holder of a certificate
5-3 or registrant; or
5-4 (2) [One year] Sixty days after the date upon which the [certificate]
5-5 holder of a certificate or registrant was granted his certificate or
5-6 registration, if no permit was ever issued to him, unless the failure has been
5-7 excused by the board.
5-8 (j) Conduct discreditable to the profession of public accounting or
5-9 which reflects adversely upon the fitness of the person to engage in the
5-10 practice of public accounting.
5-11 (k) Making a false or misleading statement in support of an application
5-12 for a certificate, registration or permit of another person.
5-13 2. After giving notice and conducting a hearing, the board may deny
5-14 an application to take the examination prescribed by the board pursuant
5-15 to NRS 628.190, deny a person admission to such an examination,
5-16 invalidate a grade received for such an examination or deny an
5-17 application for a certificate issued pursuant to NRS 628.190 to 628.310,
5-18 inclusive, to a person who has:
5-19 (a) Made any false or fraudulent statement, or any misleading
5-20 statement or omission relating to a material fact in an application:
5-21 (1) To take the examination prescribed by the board pursuant to
5-22 NRS 628.190; or
5-23 (2) For a certificate issued pursuant to NRS 628.190 to 628.310,
5-24 inclusive;
5-25 (b) Cheated on an examination prescribed by the board pursuant to
5-26 NRS 628.190 or any such examination taken in another state or
5-27 jurisdiction of the United States;
5-28 (c) Aided, abetted or conspired with any person in a violation of the
5-29 provisions of paragraph (a) or (b); or
5-30 (d) Committed any combination of the acts set forth in paragraphs (a),
5-31 (b) and (c).
5-32 3. In addition to other penalties prescribed by this section, the board
5-33 may impose a civil penalty of not more than $5,000 for each violation[.] of
5-34 this section. The board may recover:
5-35 (a) Attorney’s fees and costs incurred [in] with respect to a hearing held
5-36 pursuant to [subsection 1] this section from a [licensee if he] person who is
5-37 found in violation [thereof; and] of any of the provisions of this section;
5-38 (b) Attorney’s fees and costs incurred in the recovery of a civil penalty
5-39 imposed [.] pursuant to this section; and
5-40 (c) Any other costs incurred by the board as a result of such a
5-41 violation.
5-42 Sec. 6. NRS 628.400 is hereby amended to read as follows:
5-43 628.400 1. After giving notice and conducting a hearing, the board
5-44 shall revoke the registration of a partnership, corporation or limited-
5-45 liability company if at any time it does not have all the qualifications
5-46 prescribed by the section of this chapter under which it qualified for
5-47 registration.
5-48 2. After giving notice and conducting a hearing, the board may revoke
5-49 or suspend the registration of a partnership, corporation or limited-liability
6-1 company, or may censure the partnership, corporation or limited-liability
6-2 company, or impose a sanction authorized by NRS 628.390, for any of the
6-3 causes enumerated in subsection 1 of NRS 628.390, or for one or both of
6-4 the following additional causes:
6-5 (a) The revocation or suspension of the certificate or registration or the
6-6 revocation or suspension or refusal to renew the permit to practice of any
6-7 partner or shareholder who is personally engaged in the practice of public
6-8 accounting in this state, whether or not he holds a live permit in this state.
6-9 (b) The cancellation, revocation, suspension or refusal to renew the
6-10 authority of the partnership, corporation or limited-liability company, or
6-11 any partner, shareholder or member thereof to practice public accounting in
6-12 any other state for any cause other than failure to pay an annual registration
6-13 fee or comply with a requirement for continuing education or practice
6-14 review in the other state.
6-15 Sec. 7. This act becomes effective on July 1, 2001.
6-16 H