REQUIRES TWO THIRDS MAJORITY VOTE (§§ 1, 2, 4)
(REPRINTED WITH ADOPTED AMENDMENTS)
FIRST REPRINT 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.
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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. Chapter 628 of NRS is hereby amended by adding thereto a
1-2 new section to read as follows:
1-3 1. Before a certified public accountant or registered public
1-4 accountant or a partnership, corporation or limited-liability company
1-5 composed of certified public accountants or registered public
1-6 accountants engages in the practice of public accounting in this state
1-7 under a fictitious name, it must register the fictitious name with the
1-8 board.
1-9 2. The board shall adopt regulations to carry out the provisions of
1-10 this section, including, without limitation, regulations that prescribe:
1-11 (a) The procedure for registering a fictitious name with the board;
1-12 and
1-13 (b) The fee for registering a fictitious name with the board.
1-14 Sec. 2. NRS 628.280 is hereby amended to read as follows:
1-15 628.280 1. The board shall charge each candidate for a certificate of
1-16 certified public accountant a fee to be determined by the board by
1-17 regulation for [the] :
2-1 (a) The initial examination prescribed by the board pursuant to
2-2 NRS 628.190[.
2-3 2. Fees for reexaminations under NRS 628.190 must also be charged
2-4 by the board in amounts determined by it by regulation] or for each section
2-5 of the examination in which the candidate is reexamined[.
2-6 3.] ; and
2-7 (b) The review and inspection of his examination paper.
2-8 2. The applicable [fee] fees must be paid by the candidate at the time
2-9 he applies for examination or reexamination.
2-10 [4.] 3. The board shall charge [each candidate for a certificate of
2-11 certified public accountant] a fee to be determined by the board by
2-12 regulation for [review and inspection of his examination paper.]
2-13 administering the examination prescribed by the board pursuant to NRS
2-14 628.190 to a person who is a candidate for a certificate as a certified
2-15 public accountant in another state or jurisdiction of the United States
2-16 and requests that the board administer the examination to him in this
2-17 state.
2-18 Sec. 3. NRS 628.310 is hereby amended to read as follows:
2-19 628.310 1. The board may waive the examination, the requirements
2-20 for education or the requirements for experience, or any combination
2-21 thereof, required under NRS 628.190, and may issue a certificate as a
2-22 certified public accountant to any person who is the holder of a certificate
2-23 as a certified public accountant then in effect issued under the laws of any
2-24 state or other jurisdiction of the United States approved by the board,
2-25 constituting a recognized qualification for the practice of public accounting
2-26 comparable to that of a certified public accountant of this state, if:
2-27 (a) The person has passed an examination that is substantially the same
2-28 as the examination conducted pursuant to NRS 628.230 with a grade that
2-29 would have been a passing grade in this state on the date on which he
2-30 received his original certificate;
2-31 (b) The person has experience in the practice of public accountancy,
2-32 either as a certified public accountant or as a staff accountant employed by
2-33 or under the direct supervision of a person who is a certified public
2-34 accountant, while holding a certificate as a certified public accountant for
2-35 more than 4 of the 10 years immediately preceding his making application
2-36 pursuant to this chapter; and
2-37 (c) The requirements for education of the state or other jurisdiction from
2-38 which the person received his original certificate [were substantially
2-39 equivalent to] are determined by the board to satisfy the requirements for
2-40 education of this state . [on the date on which the person received his
2-41 original certificate.]
2-42 2. The board may waive the examination, the requirements for
2-43 education or the requirements for experience, or any combination thereof,
2-44 under NRS 628.190, and may issue a certificate as a certified public
2-45 accountant to any person who is the holder of an equivalent certificate then
2-46 in effect issued by a foreign country if:
2-47 (a) Persons who are certified as public accountants in this state are
2-48 granted similar privileges by the foreign country in which the applicant is
2-49 certified;
3-1 (b) The applicant’s certificate:
3-2 (1) Was issued by the appropriate authority that regulates the practice
3-3 of public accountancy in the foreign country in which the certificate was
3-4 issued;
3-5 (2) Has not expired or been revoked or suspended; and
3-6 (3) Authorizes the applicant to issue reports upon financial
3-7 statements;
3-8 (c) The requirements for education and examination of the regulatory
3-9 authority of the foreign country were substantially equivalent to the
3-10 requirements for education and examination of this state on the date on
3-11 which the applicant received his certificate;
3-12 (d) The applicant:
3-13 (1) Complied with requirements for experience in the foreign country
3-14 in which the certificate was issued that are substantially equivalent to the
3-15 requirements set forth in NRS 628.200; or
3-16 (2) Has completed in this state at least 4 years of public accounting
3-17 experience, or equivalent experience determined to be appropriate by the
3-18 board, within the 10 years immediately preceding his making application
3-19 for certification in this state;
3-20 (e) The applicant has passed a written examination on national
3-21 standards for public accounting and ethics that is acceptable to the board;
3-22 and
3-23 (f) The applicant submits with his application a list of all jurisdictions in
3-24 which he has applied for and received a certificate to practice public
3-25 accounting.
3-26 3. A person who is granted a certificate as a certified public accountant
3-27 pursuant to subsection 2 shall notify the board, in writing, within 30 days
3-28 after:
3-29 (a) He is issued an equivalent certificate to practice public accounting
3-30 by another jurisdiction or is denied the issuance of such a certificate;
3-31 (b) A certificate to practice public accounting issued to him by another
3-32 jurisdiction is revoked or suspended; or
3-33 (c) Another jurisdiction in which he is certified to practice public
3-34 accounting commences any type of disciplinary action against him.
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] the renewal of a permit [more than 1 year after the expiration of a
4-7 previous permit or granting of a certificate or registration.] after January
4-8 31 of each year.
4-9 5. The board may provide by regulation for the placing of certificates
4-10 and registrations [in] on a retired or inactive status. The regulation may
4-11 provide for a procedure for applying for retired or inactive status and for
4-12 applying to return to active status, and must specify fees, if any, to
4-13 accompany the applications.
4-14 Sec. 5. NRS 628.390 is hereby amended to read as follows:
4-15 628.390 1. After giving notice and conducting a hearing, the board
4-16 may revoke, or may suspend for a period of not more than 5 years, any
4-17 certificate issued under NRS 628.190 to 628.310, inclusive, any
4-18 registration or license granted to a registered public accountant under NRS
4-19 628.350, or any registration of a partnership, corporation, limited-liability
4-20 company or office, or may revoke, suspend or refuse to renew any permit
4-21 issued under NRS 628.380, or may censure the holder of any permit, for
4-22 any one or any combination of the following causes:
4-23 (a) Fraud or deceit in obtaining a certificate , as certified public
4-24 accountant, or in obtaining registration or a license as a public accountant
4-25 under this chapter, or in obtaining a permit to practice public accounting
4-26 under this chapter.
4-27 (b) Dishonesty, fraud or gross negligence by a certified or registered
4-28 public accountant in the practice of public accounting or, if not in the
4-29 practice of public accounting, of a kind which adversely affects the ability
4-30 to perform public accounting.
4-31 (c) Violation of any of the provisions of this chapter.
4-32 (d) Violation of a regulation or rule of professional conduct adopted by
4-33 the board under the authority granted by this chapter.
4-34 (e) Conviction of a felony under the laws of any state or of the United
4-35 States.
4-36 (f) Conviction of any crime, an element of which is dishonesty or fraud,
4-37 under the laws of any state or of the United States.
4-38 (g) Cancellation, revocation, suspension or refusal to renew authority to
4-39 practice as a certified public accountant or a registered public accountant
4-40 by any other state, for any cause other than failure to pay an annual
4-41 registration fee or to comply with requirements for continuing education or
4-42 review of his practice in the other state.
4-43 (h) Suspension or revocation of the right to practice before any state or
4-44 federal agency.
4-45 (i) Unless the person has been placed on inactive or retired status,
4-46 failure to obtain an annual permit under NRS 628.380, within:
4-47 (1) [One year] Sixty days after the expiration date of the permit to
4-48 practice last obtained or renewed by the [certificate] holder of a certificate
4-49 or registrant; or
5-1 (2) [One year] Sixty days after the date upon which the [certificate]
5-2 holder of a certificate or registrant was granted his certificate or
5-3 registration, if no permit was ever issued to him, unless the failure has been
5-4 excused by the board.
5-5 (j) Conduct discreditable to the profession of public accounting or
5-6 which reflects adversely upon the fitness of the person to engage in the
5-7 practice of public accounting.
5-8 (k) Making a false or misleading statement in support of an application
5-9 for a certificate, registration or permit of another person.
5-10 2. After giving notice and conducting a hearing, the board may deny
5-11 an application to take the examination prescribed by the board pursuant
5-12 to NRS 628.190, deny a person admission to such an examination,
5-13 invalidate a grade received for such an examination or deny an
5-14 application for a certificate issued pursuant to NRS 628.190 to 628.310,
5-15 inclusive, to a person who has:
5-16 (a) Made any false or fraudulent statement, or any misleading
5-17 statement or omission relating to a material fact in an application:
5-18 (1) To take the examination prescribed by the board pursuant to
5-19 NRS 628.190; or
5-20 (2) For a certificate issued pursuant to NRS 628.190 to 628.310,
5-21 inclusive;
5-22 (b) Cheated on an examination prescribed by the board pursuant to
5-23 NRS 628.190 or any such examination taken in another state or
5-24 jurisdiction of the United States;
5-25 (c) Aided, abetted or conspired with any person in a violation of the
5-26 provisions of paragraph (a) or (b); or
5-27 (d) Committed any combination of the acts set forth in paragraphs (a),
5-28 (b) and (c).
5-29 3. In addition to other penalties prescribed by this section, the board
5-30 may impose a civil penalty of not more than $5,000 for each violation[.] of
5-31 this section. The board may recover:
5-32 (a) Attorney’s fees and costs incurred [in] with respect to a hearing held
5-33 pursuant to [subsection 1] this section from a [licensee if he] person who is
5-34 found in violation [thereof; and] of any of the provisions of this section;
5-35 (b) Attorney’s fees and costs incurred in the recovery of a civil penalty
5-36 imposed [.] pursuant to this section; and
5-37 (c) Any other costs incurred by the board as a result of such a
5-38 violation.
5-39 Sec. 6. NRS 628.400 is hereby amended to read as follows:
5-40 628.400 1. After giving notice and conducting a hearing, the board
5-41 shall revoke the registration of a partnership, corporation or limited-
5-42 liability company if at any time it does not have all the qualifications
5-43 prescribed by the section of this chapter under which it qualified for
5-44 registration.
5-45 2. After giving notice and conducting a hearing, the board may revoke
5-46 or suspend the registration of a partnership, corporation or limited-liability
5-47 company, or may censure the partnership, corporation or limited-liability
5-48 company, or impose a sanction authorized by NRS 628.390, for any of the
6-1 causes enumerated in subsection 1 of NRS 628.390, or for one or both of
6-2 the following additional causes:
6-3 (a) The revocation or suspension of the certificate or registration or the
6-4 revocation or suspension or refusal to renew the permit to practice of any
6-5 partner or shareholder who is personally engaged in the practice of public
6-6 accounting in this state, whether or not he holds a live permit in this state.
6-7 (b) The cancellation, revocation, suspension or refusal to renew the
6-8 authority of the partnership, corporation or limited-liability company, or
6-9 any partner, shareholder or member thereof to practice public accounting in
6-10 any other state for any cause other than failure to pay an annual registration
6-11 fee or comply with a requirement for continuing education or practice
6-12 review in the other state.
6-13 Sec. 7. 1. Notwithstanding the provisions of section 1 of this act, a
6-14 certified public accountant or registered public accountant, or a
6-15 partnership, corporation or limited-liability company composed of certified
6-16 public accountants or registered public accountants, that is engaged in the
6-17 practice of public accounting in this state under a fictitious name and holds
6-18 a certificate of registration that was issued under the fictitious name by the
6-19 Nevada state board of accountancy pursuant to NRS 628.370 before July 1,
6-20 2001, must register the fictitious name with the board pursuant to the
6-21 procedure prescribed by the board and pay the fee prescribed by the board
6-22 not later than January 1, 2002.
6-23 2. As used in this section:
6-24 (a) “Practice of public accounting” has the meaning ascribed to it in
6-25 NRS 628.023.
6-26 (b) “Registered public accountant” has the meaning ascribed to it in
6-27 NRS 628.029.
6-28 Sec. 8. 1. This section and sections 2 to 7, inclusive, of this act
6-29 become effective on July 1, 2001.
6-30 2. Section 1 of this act becomes effective on July 1, 2001, for the
6-31 purpose of adopting regulations and on January 1, 2002, for all other
6-32 purposes.
6-33 H