Introduced By: Senator McCaffrey
Date Introduced : January 14, 1998
It is enacted by the General Assembly as follows:
SECTION 1. Section 5-3.1-4 of the General Laws in Chapter 5-3.1 entitled "Public Accountancy" is hereby amended to read as follows:
5-3.1-4. Board of accountancy. -- (a) There is hereby
created a board of accountancy in and for the state of Rhode Island,
to be known as the Rhode Island board of accountancy. The board
shall consist of five (5) members. All members shall be appointed
by the governor. Membership of the board shall consist of three
(3) members who hold certificates and valid permits to practice
as certified public accountants in this state and who are in public
practice as certified public accountants in this state, and one
(1) member who holds an authority and a valid permit to practice
as a public accountant in this state, all four (4) of whom shall
have at least {DEL five DEL} {DEL (5) DEL} {ADD (10)
ten ADD} years' experience in a full-time practice of public accountancy;
the fifth member of the board shall be from the public sector
and shall have such professional or practical experience in the
use of accounting services and financial statements so as to be
qualified to evaluate whether the qualifications, activities,
and professional practice of those persons and firms regulated
under this chapter conform with the standards established to protect
the public interest. The board member from the public sector shall
be designated as the public's member to the board for the term
of service so appointed. Except as otherwise provided, the term
of the members of the board shall be five (5) years. No member
of the board shall be associated in the practice of accountancy,
either individually or as a member of a firm, with any other member
of the board. The members of the Rhode Island board of accountancy
appointed and serving as such under prior law on [July 1, 1995]
shall serve out the terms for which they were originally appointed
as members of the board created by this section. Vacancies occurring
during any term shall be filled by appointment by the governor
for the unexpired term. Upon the expiration of his or her term
of office, a member shall continue to serve until his or her successor
shall have been appointed and shall have assumed office. The governor
shall remove from the board any member whose certificate, authority
or permit has been revoked, suspended, or not renewed. No person
who has served two (2) consecutive complete terms shall be eligible
for reappointment. Serving the remainder of an unexpired term
upon appointment by the governor to fill a vacancy on the board
shall not be considered as serving a complete term.
(b) The board shall elect annually from among its members a chairman and such other officers as it deems appropriate. The board shall meet at such times and places as may be fixed by the board and in any event shall meet no less than four (4) times each year. Three (3) members of the board shall constitute a quorum for the transaction of business. The board shall have a seal which shall be judicially noticed. The board shall retain or arrange for the retention of all applications and documents under oath that are filed with the board, and shall maintain a registry of the names and addresses or all licensees. The board shall keep records of its proceedings, and in any proceeding in court, civil or criminal, arising out of or founded upon any provision of this chapter, copies of said records certified as correct under the seal of the board shall be admissible in evidence.
(c) Each member of the board shall receive compensation in the amount of thirty dollars ($30.00) for each day or portion thereof spent in the discharge of official duties as such a member, to a maximum of seven hundred and fifty dollars ($750) per year, and shall be reimbursed for actual and necessary expenses incurred in the discharge of such duties.
(d) All fees and monies derived under the provisions of this chapter shall be paid to and received by the general treasurer of the State of Rhode Island, who shall keep such monies in a restricted receipt account. All monies in the restricted receipt account shall be used to reimburse the board for expenses incurred in the administration and enforcement of this chapter. The board treasurer is authorized and directed to draw orders upon the general treasurer for payment from the restricted receipt account upon receipt by the board treasurer of vouchers authenticated by the chairman, vice chairman, or secretary of the board.
(e) The board shall file an annual report of its activities with the governor and the general assembly of this state. The report shall include, but not be limited to, a statement of all receipts and disbursements and a listing of all current licensees. The board shall mail a copy of any such annual report upon request in writing to any licensee and to any member of the public.
(f) The board shall prescribe such rules and regulations not inconsistent with the provisions of this chapter as it deems consistent with, or required by, the public welfare and policy set forth in section 5-3.1-2. Such rules and regulations may include:
(1) Rules and regulations of procedure for governing the conduct of matters before the board;
(2) Rules and regulations of professional conduct for establishing and maintaining high standards of competence and integrity in the profession of public accounting;
(3) Rules and regulations governing educational and experience requirements for the issuance of certificates;
(4) Rules and regulations establishing requirements for continuing education to promote the professional competence of holders of permits, which the board may require such holders to meet as a condition of their continuing in the practice of public accounting;
(5) Rules and regulations governing practice units engaged in the practice of public accounting, including but not limited to rules and regulations concerning the style, name, title, and affiliation with any other organization, and establishing reasonable standards with respect to professional liability insurance;
(6) Rules and regulations for reviewing and monitoring professional performance and conducting quality reviews;
(7) Any other rules and regulations which the board deems necessary or appropriate in exercising its functions under this chapter.
(g) The promulgation of any rule, regulation, or amendment thereto under subsection (f) or under any other provision of this chapter shall be in accordance with section 42-35-3.
(h) The board may employ such personnel and arrange for such assistance, legal or otherwise, as it may require for the performance of its duties. It also may, from time to time, establish one or more advisory committees as it deems necessary in the performance of such duties. The authority and term of any such advisory committee may be permanent or temporary in nature as determined by the board.
(i) In addition to its rulemaking authority, the board shall have the power to take all action that is necessary and proper to effectuate the purposes of this chapter, including the power:
(1) To sue and be sued in its official name as an agency of this state;
(2) To investigate all complaints and charges of unprofessional conduct, including but not limited to such conduct specified under section 5-3.1-12, against any licensee or any applicant for a certificate or permit, and to hold hearings, in accordance with the provisions of section 5-3.1-14, to determine whether such complaints and charges are substantiated;
(3) To appoint one or more members of the board, legal counsel, and/or an independent investigator to act on behalf of the board in investigating the conduct of any licensee, or of any applicant for a certificate or permit, or in the alternative to appoint a probable cause committee to investigate such conduct on its behalf, such committee to be comprised of licensees in good standing, as the board shall determine; and
(4) To issue subpoenas, administer oaths, and summon and examine witnesses in connection with any investigation conducted under authority of this chapter. If a subpoena is disobeyed, the board may invoke the aid of any court of competent jurisdiction in this state to require the attendance and testimony of witnesses and the production of documentary evidence.
(j) The board and its members and agents shall be immune from personal liability for actions taken in good faith in the discharge of the board's responsibilities, and the State of Rhode Island shall indemnify the board and such members and agents for, and shall hold them harmless from, any and all costs, damages, and reasonable attorneys' fees arising from or related in any way to claims or actions against them with respect to matters to which such immunity applies.
SECTION 2. This act shall take effect upon passage.
