WSR 12-07-079

PROPOSED RULES

BOARD OF ACCOUNTANCY


[ Filed March 20, 2012, 2:17 p.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 12-04-047.

Title of Rule and Other Identifying Information: WAC 4-30-058 Does the board authorize the use of any other titles or designations?

Hearing Location(s): The Doubletree Hotel Seattle Airport, Cascade 13, 18740 International Boulevard, SeaTac, WA, on April 26, 2012, at 9:00 a.m.

Date of Intended Adoption: April 26, 2012.

Submit Written Comments to: Richard C. Sweeney, Executive Director, P.O. Box 9131, Olympia, WA 98507-9131, e-mail cheryls@cpaboard.wa.gov, fax (360) 664-9194, by April 18, 2012.

Assistance for Persons with Disabilities: Contact Cheryl Sexton by April 19, 2012, TTY (800) 833-6384 or (360) 664-9194.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Add language to the rule that will allow:

(1) The designation "CPA retired" for those certified public accounts (CPA) who:

(a) Have reached sixty years of age and hold an active license in good standing; or

(b) At any age, have held an active license in good standing, not suspended or revoked, to practe [practice] public accountancy in any state for a combined period of not less than twenty years.

(2) Use of designations or titles authorized by the American Institute of Certified Public Accountants.

Reasons Supporting Proposal: Currently, individuals who retire their CPA license cannot use the title "CPA." This leaves CPAs who have practiced for many years and are very proud of their profession with no formal way to acknowledge their lifetime of experience and knowledge. Allowing the use of the title "CPA retired" will accurately reflect the good standing of CPAs who have chosen to retire from the profession while making it clear to the public that they are no longer practicing accounting.

In the United States, at least twenty state accountancy boards offer a retired designation.

Statutory Authority for Adoption: RCW 18.04.350(13).

Statute Being Implemented: RCW 18.04.350(13).

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

Name of Proponent: Washington Society of Certified Public Accountants (WSCPA), private.

Name of Agency Personnel Responsible for Drafting, Implementation and Enforcement: Richard C. Sweeney, P.O. Box 9131, Olympia, WA 98507-9131, (360) 586-0163.

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 "offices of certified public accountants."

A cost-benefit analysis is not required under RCW 34.05.328. The board of accountancy is not one of the agencies required to submit to the requirements of RCW 34.05.328.

March 19, 2012

Richard C. Sweeney, CPA

Executive Director

OTS-4682.2


AMENDATORY SECTION(Amending WSR 10-24-009, filed 11/18/10, effective 12/19/10)

WAC 4-30-058   Does the board authorize the use of any other titles or designations?   Yes. ((The board)) RCW 18.04.350(13), Practices not prohibited, authorizes the board to allow the use of ((the following)) other titles ((and)) (designations)((, provided)) if the individual using the title or designation is ((so)) authorized ((to)) at the time of use by nationally recognized entity sanctioning the use of board authorized titles or designations. Accordingly, the board authorizes the use of the following titles ((or)) and designations:

(1) Designations or titles authorized by the American Institute of Certified Public Accountants (AICPA);

(2) Designations or titles authorized by the Accreditation Council for Accountancy and Taxation located in Alexandria, Virginia, or its successor:

"Accredited Business Accountant" or "ABA";

"Accredited Tax Preparer" or "ATP"; and

"Accredited Tax Advisor" or "ATA."

((The board also authorizes the use of the title "Certified Financial Planner" or "CFP" provided the individual is so)) (3) Designations or titles authorized ((to use the title or designation)) by the Certified Financial Planner Board of Standards in Denver, Colorado, or its successor:

"Certified financial planner" or "CFP."

((This authorization)) These authorized designations relate((s)) to title use only, ((is)) are not limited to individuals who have held or are holding a license or certificate under the act, and ((does)) do not authorize these other designated individuals to use the title "certified public accountant" or "CPA((.))," or "CPA-inactive."

The board further authorizes the use of the designation "CPA retired" in this state by those individuals who, upon notice to the board to retire a license, meet the following criteria:

Has reached sixty years of age and holds an active license in good standing; or

At any age, has held an active license in good standing, not suspended or revoked, to practice public accounting in any state for a combined period of not less than twenty years.

[Statutory Authority: RCW 18.04.350(13). 10-24-009, recodified as 4-30-058, filed 11/18/10, effective 12/19/10. Statutory Authority: RCW 18.04.350(9). 02-17-051, 4-25-930, filed 8/15/02, effective 9/15/02.]

Washington State Code Reviser's Office