BP BHEAD INT S [atlas:bill]

AN ACT Relating to the responsibilities of the higher education coordinating board and education for accountants; amending RCW 18.04.055; and adding a new section to chapter 28B.80 RCW.

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

NEW SECTION. Sec. 1. A new section is added to chapter 28B.80 RCW to read as follows:

The higher education coordinating board shall review and approve or disapprove any educational requirements proposed by the board of accountancy that would require candidates for certified public accountant to take more than one hundred twenty semester credit hours or their equivalent of college or university work. Before granting such approval, the higher education coordinating board shall provide to the governor, the board of accountancy, and the house of representatives and senate committees on higher education a cost benefit analysis of such requirement.

Sec. 2. RCW 18.04.055 and 1992 c 103 s 5 are each amended to read as follows:

The board may adopt and amend rules under chapter 34.05 RCW for the orderly conduct of its affairs. The board shall prescribe rules consistent with this chapter as necessary to implement this chapter. Included may be:

(1) Rules of procedure to govern the conduct of matters before the board;

(2) Rules of professional conduct for all certificate and license holders, in order to establish and maintain high standards of competence and ethics of certified public accountants including rules dealing with independence, integrity, objectivity, and freedom from conflicts of interest;

(3) Rules specifying actions and circumstances deemed to constitute holding oneself out as a licensee in connection with the practice of public accountancy;

(4) Rules specifying the manner and circumstances of the use of the titles "certified public accountant" and "CPA," by holders of certificates who do not also hold licenses under this chapter;

(5) Educational requirements to take the certified public accountant examination or for the issuance of the certificate or license of certified public accountant. The board may not require an applicant to have successfully completed more than one hundred twenty semester credit hours or their equivalent of college or university work unless the board has received approval from the higher education coordinating board for that requirement;

(6) Rules designed to ensure that certified public accountants' "reports on financial statements" meet the definitional requirements for that term as specified in RCW 18.04.025;

(7) Requirements for continuing professional education to maintain or improve the professional competence of certificate and license holders as a condition to maintaining their certificate or license to practice under RCW 18.04.215;

(8) Rules governing sole proprietors, partnerships, and corporations practicing public accounting including, but not limited to, rules concerning their style, name, title, and affiliation with any other organization, and establishing reasonable practice standards to protect the public interest;

(9) The board may by rule implement a quality assurance review program as a means to monitor licensees' quality of practice and compliance with professional standards. The board may exempt from such program, licensees who undergo periodic quality reviews in programs of the American Institute of Certified Public Accountants, National Association of State Boards of Accountancy, or other programs recognized and approved by the board;

(10) The board may by rule require firms to obtain professional liability insurance if in the board's discretion such insurance provides additional and necessary protection for the public; and

(11) Any other rule which the board finds necessary or appropriate to implement this chapter.