Original Notice.

Preproposal statement of inquiry was filed as WSR 99-23-057.

Title of Rule: WAC 4-25-660 Advertising and other forms of solicitation.

Purpose: To identify the limitations on advertising and other forms of solicitation by persons using the title CPA.

Statutory Authority for Adoption: RCW 18.04.055(2).

Statute Being Implemented: RCW 18.04.055(2).

Summary: The rule prohibits a person using the CPA title from making false, fraudulent, misleading, deceptive or unfair statements or claims and lists examples of such statements or claims.

Reasons Supporting Proposal: To promote clarity, ensure effective communication, ensure fairness in interpretation of the rule, strengthen public/consumer protection from misleading advertising or solicitation, and promote uniformity with other states' accountancy boards.

Name of Agency Personnel Responsible for Drafting, Implementation and Enforcement: Dana M. McInturff, CPA, 210 East Union, Suite A, Olympia, (360) 586-0163.

Name of Proponent: Board of Accountancy, governmental.

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: "Advertising and other forms of solicitation" is a rule of professional conduct necessary to establish and maintain high standards of competence and ethics of certified public accountants (CPAs) to protect the public interest especially in the area of advertising and solicitation.

Proposal Changes the Following Existing Rules: The amendment to the rule:

1. Clarifies that all aspects of the rule applies to all individuals using the title CPA, not just licensees in public practice.

2. Makes the rule easier to read and understand.

3. Adds the requirement for Washington CPAs soliciting on the Internet to include the statement that they hold a valid Washington state CPA certificate on the Internet site.

No small business economic impact statement has been prepared under chapter 19.85 RCW. The proposed rule will not have more than minor economic impact on business.

RCW 34.05.328 does not apply to this rule adoption. The Board of Accountancy is not one of the agencies required to submit to the requirements of RCW 34.05.328.

Hearing Location: Wyndham Garden Hotel -- SeaTac, 18118 Pacific Highway South, SeaTac, WA 98188, on April 28, 2000, at 9:30 a.m.

Assistance for Persons with Disabilities: Contact Cheryl Sexton by April 21, 2000, TDD (800) 833-6384, or (360) 664-9194.

Submit Written Comments to: Dana M. McInturff, P.O. Box 9131, Olympia, WA 98507-9131, fax (360) 664-9190, by April 26, 2000.

Date of Intended Adoption: April 28, 2000.

February 25, 2000

Dana M. McInturff, CPA

Executive Director

OTS-3845.1

AMENDATORY SECTION(Amending WSR 93-22-090, filed 11/2/93, effective 12/3/93)

WAC 4-25-660
((Advertising and other forms of solicitation.)) What are the limitations on advertising and other forms of solicitation?

((A person using the CPA title shall not use or participate in the use of any form of communication having reference to the CPA's professional services which contains a)) (1) If you use the title CPA, you must not make false, fraudulent, misleading, deceptive or unfair statements or claims((.      A false, fraudulent, misleading, deceptive or unfair)) regarding your services. Examples of such statements or claims include((s)), but ((is)) are not limited to ((a)), statements or claims which:

(((1))) (a) Contain((s)) a misrepresentation of fact; ((or

(2) Is likely to mislead or deceive because it)) (b) Fail((s)) to make full disclosure of relevant facts; ((or

(3) Contains any testimonial, laudatory, or other statement or implication that the licensee's)) (c) Imply your professional services are of an exceptional quality, ((if)) which is not supported by verifiable facts; ((or

(4) Is intended or likely to)) (d) Create false ((or unjustified)) expectations of favorable results; ((or

(5) Implies)) (e) Imply educational or professional attainments, specialty designations, or licensing recognition not supported in fact; or

(((6))) (f) Represent((s)) that professional services ((can or)) will be ((competently)) performed for a stated fee when this is not the case, or ((makes representations with respect to fees for professional services that)) do not disclose all variables that may reasonably be expected to ((effect)) affect the fees that will ((in fact)) be charged((; or

(7) Contains any other representations that are likely to mislead or deceive a reasonable person)).

(2) If you use the CPA title to perform or solicit services via the Internet, you must include a statement on the Internet site that you hold a valid Washington state CPA certificate. This statement must be clearly visible and prominently displayed.

[Statutory Authority: RCW 18.04.055.      93-22-090, § 4-25-660, filed 11/2/93, effective 12/3/93.]

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