WSR 01-07-040

PROPOSED RULES

BOARD OF ACCOUNTANCY


[ Filed March 15, 2001, 1:36 p.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 00-19-010.

Title of Rule: WAC 4-25-650 Acts discreditable.

Purpose: To identify in a clear rule-writing format what acts by persons using the title CPA are considered discreditable and subjects the CPA to discipline.

Statutory Authority for Adoption: RCW 18.04.055(2).

Statute Being Implemented: RCW 18.04.055(2).

Summary: Lists acts that the board considers to be discreditable for a person using the CPA title.

Reasons Supporting Proposal: Clearly identifying what acts the board considers discreditable ensures fairness in interpretation and application of the rule for CPAs and addresses the legislative directive to protect the public.

Name of Agency Personnel Responsible for Drafting, Implementation and Enforcement: Dana M. McInturff, CPA, 711 South Capitol Way, #400, 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: This rule of professional conduct is directed at persons using the title CPA. It clearly discloses what acts the board considers discreditable. The goal of the amendment is to promote clarity; ensure effective communication; ensure fairness in interpretation and application of the rule; and promote efficiencies through minimizing gray areas.

Proposal Changes the Following Existing Rules: The amendment: (1) Changes the title of the rule to "What acts are considered discreditable?"; and (2) is written in a clear rule-writing format.

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: Capitol Court Building, 110 Capitol Way South, 11th and Capitol Way, Room 135, Olympia, WA, on April 27, 2001, at 9:30 a.m.

Assistance for Persons with Disabilities: Contact Cheryl Sexton by April 20, 2001, 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, 2001.

Date of Intended Adoption: April 27, 2001.

March 15, 2001

Dana M. McInturff, CPA

Executive Director

OTS-4666.1


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

WAC 4-25-650   ((Acts discreditable.)) What acts are considered discreditable?   ((A person using the CPA title shall not commit, or allow others to commit in the CPA's name, any act that reflects adversely on the CPA's fitness to represent himself or herself as a CPA.

A person using the CPA title shall not seek to obtain clients by the use of coercion, intimidation or harassing conduct.

A person using the CPA title shall not permit others to carry out on his or her behalf, either with or without compensation, acts which, if carried out by the CPA, would place the CPA in violation of the rules of conduct.)) If you use the CPA title you must not:

Commit, or allow others to commit in your name, any act that reflects adversely on your fitness to represent yourself as a CPA;

Seek to obtain clients by the use of coercion, intimidation or harassing conduct; or

Permit others to carry out on your behalf, either with or without compensation, acts which, if carried out by you, would violate the rules of conduct.

[Statutory Authority: RCW 18.04.055. 93-22-090, 4-25-650, filed 11/2/93, effective 12/3/93.]

Washington State Code Reviser's Office