The Board proposes the rule amendment to update violations and penalties.  

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    DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION

    Board of Accountancy

    RULE NO.:RULE TITLE:

    61H1-36.004Disciplinary Guidelines; Range of Penalties; Aggravating and Mitigating Circumstances

    PURPOSE AND EFFECT: The Board proposes the rule amendment to update violations and penalties.

    SUMMARY: Language regarding violations and penalties will be updated.

    SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:

    The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the Agency.

    The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: During discussion of the economic impact of this rule at its Board meeting, the Board, based upon the expertise and experience of its members, determined that a Statement of Estimated Regulatory Costs (SERC) was not necessary and that the rule will not require ratification by the Legislature. No person or interested party submitted additional information regarding the economic impact at that time.

    Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.

    RULEMAKING AUTHORITY: 455.2273, 473.304 FS.

    LAW IMPLEMENTED: 455.277, 455.2273, 473.323 FS.

    IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE SCHEDULED AND ANNOUNCED IN THE FAR.

    THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Veloria A. Kelly, Division Director, Board of Accountancy, 240 NW 76th Drive, Suite A, Gainesville, Florida 32607.

     

    THE FULL TEXT OF THE PROPOSED RULE IS:

    61H1-36.004 Disciplinary Guidelines; Range of Penalties; Aggravating and Mitigating Circumstances.

    (1)(a) through (b) No change.

    (2) The following disciplinary guidelines shall be followed by the board in imposing disciplinary penalties upon licensees for violation of the below mentioned statutes and rules:

    VIOLATION

    PENALTY RANGE

     

    MINIMUM

    MAXIMUM

    (a) through (d) No change.

     

     

    (e) Fraudulent, false, deceptive or misleading advertising

    (Section 473.323(1)(f), F.S.)

    (Rule 61H1-24.001, F.A.C.)

    $250 fine

    $1,000 fine

    (f) Incompetence (mental or physical impairment)

    (Section 473.323(1)(g), F.S.)

    (Rule 61H1-36.001(3), F.A.C.)

    Suspension until ability to practice proved, followed by probation

     

    (g) No change.

     

     

    (h) Negligence or misconduct

    (Section 473.323(1)(g), F.S.)

    $250 fine

    Reprimand and one (1) year probation (continuing Education and review of practice at licensee’s expense and limited area of practice) and $5,000 fine

    1.Technical standards and professional competence (Sections 455.227(1)(o), 473.315, F.S.)

    (Rule 61H1-21.006 and Chapter 61H1-22, F.A.C.)

    Reprimand, probation, and $500 fine

    Suspension and $5,000 fine

    2. Lack of independence

    (Sections 473.315, 473.319, 473.3205, F.S.)

    (Rule 61H1-21.001, F.A.C.)

    Reprimand, one (1) year probation with review of practice and continuing education

    Revocation and $5,000 fine Reprimand, one (1) year suspension, two (2) years probation and review of practice and continuing education

    3. Commissions and contingent fees

    (Rules 61H1-21.001, 61H1-21.003, 61H1-21.005, F.A.C.)

    Reprimand

    One (1) year suspension, two (2) years probation and $2,500 $5,000 fine

    4. Client records disposition

    (Rule 61H1-23.002, F.A.C.)

    $250 fine

    Suspension until records are returned and $1,000 fine

    (i) through (o) No change.

     

     

    (p) Violation of client Confidentiality

    (Section 473.323(1)(a) or 455.227(1)(q), F.S., by Rule 61H1-23.001, F.A.C.)

    Reprimand, probation, and $1,000 fine

    Revocation Suspension and $5,000 fine

    (q) Misleading or deceptive name

    (Section 473.323(1)(a) by Section 473.321, F.S.)

    Reprimand, probation, and $1,000 fine

    Suspension and $1,000 5,000 fine

    (r) Violation of Section 473.323(1)(a) by Section 473.322, F.S.:

     

     

    1. Present license of another as one’s own

    (Section 473.322(1)(d), F.S.)

    Reprimand, probation, and $1,000 fine

    Revocation Suspension and $5,000 fine

    2. Give false or forged evidence to Board or member thereof

    (Section 473.322(1)(e), F.S.)

    Reprimand, probation, and $1,000 fine

    Revocation and $5,000 fine

    3. Use or attempt to use license that has been suspended, revoked, or placed on inactive or delinquent status

    (Section 473.322(1)(f), F.S.)

    Reprimand, probation, and $1,000 fine

    Revocation and $5,000 fine

    4. Employ unlicensed persons to practice public accounting; aiding or assisting unlicensed practice public accounting (Section 473.322(1)(g), F.S.)

    Reprimand, probation, and $1,000 fine

    Suspension and $5,000 fine

    5. Conceal information relative to violations of Chapter 473, F.S.

    (Section 473.322(1)(h), F.S.)

    Reprimand, probation, and $1,000 fine

    Revocation Suspension and $5,000 fine

    (s) through (u) No change.

     

     

    (v) Standards for assembly of financial statements (violation of Sections 455.227(1)(q) and 473.323(1)(h), F.S., by Rule 61H1-20.0053, F.A.C.)

    Reprimand, probation, and $1,000 fine

    Suspension and $5,000 fine

    (v)(w) No change.

     

     

    (w)(x) Minimum capital (violation of and Sections 455.227(1)(q) and 473.323(1)(h), F.S., by Rule 61H1-26.002, F.A.C.)

    Reprimand, probation, $1,000 fine and corrective action. Must document required capital

    Suspension and $1,000 5,000 fine

    (x)(y) Licensure of firm names and changes (violation of Sections 455.227(1)(q) and 473.323(1)(h), F.S., by Rules 61H1-26.003 and 61H1-26.004, F.A.C.)

    Reprimand, probation, $100/ month fine and corrective action. Must document licensure

    Suspension and $1,000 5,000 fine

    (y)(z) No change.

     

     

    (z)(aa) No change.

     

     

    (aa)(bb) Failure to obtain continuing professional education hours

    (Section 473.312, F.S., Rule 61H1-33.003, F.A.C.)

     

     

    First Offense

     

     

    NUMBER OF HOURS LACKING

     

     

    1 to 16 hours

    $500 fine, makeup missing hours plus 20 additional penalty hours, in same category as those missed, if missing hours are ethics, penalty hours would consist of accounting/auditing, within 90 days of final order, must submit proof of compliance for next two renewal periods

    $1,000 fine, makeup missing hours plus 20 additional penalty hours, in same category as those missed, if missing hours are ethics, penalty hours would consist of accounting/auditing, within 90 days of final order, must submit proof of compliance for next two renewal periods

    17 to 80 hours

    $1,000 fine, makeup missing hours plus additional penalty hours equal to the number of those missed, within same category as those missed, suspension until all hours are completed, must submit proof of compliance for next two renewal periods

    Suspension, $2,000 fine, makeup missing hours plus additional penalty hours equal to the number of those missed, within same category as those missed, must submit proof of compliance for next two renewal periods

    Second Offense

     

     

    NUMBER OF HOURS LACKING

     

     

    1 to 16 hours

    $1,000 500 fine, makeup missing hours plus 20 additional penalty hours, in same category as those missed, if missing hours are ethics, penalty hours would consist of accounting/auditing, suspension until all hours are completed, must submit proof of compliance for next two renewal periods

    $2,000 1,000 fine, makeup missing hours plus 20 additional penalty hours, in same category as those missed, if missing hours are ethics, penalty hours would consist of accounting/auditing, suspension until all hours are completed, must submit proof of compliance for next two renewal periods

    17 to 80 hours

    $2,000 fine, makeup missing hours plus additional penalty hours equal to the number of those missed, within same category as those missed, suspension until all hours are completed, must submit proof of compliance for next two renewal periods

    Suspension, $5,000 2,500 fine, makeup missing hours plus additional penalty hours equal to the number of those missed, within same category as those missed, must submit proof of compliance for next two renewal periods

    (bb)(cc) Failure to enroll in peer review program when required (Sections 473.323(1)(a) and 473.3125(4), F.S.)

    Suspension until enrollment and a reprimand

    Revocation and $5,000 2,000.00 fine

    (cc)(dd) through (dd)(ee) No change.

     

     

    (3) No change.

    Rulemaking Authority 455.2273, 473.304 FS. Law Implemented 455.277, 455.2273, 473.323 FS. History–New 1-7-87, Amended 9-16-87, 8-25-88, 6-18-91, 12-30-91, Formerly 21A-36.004, Amended 12-7-93, 5-23-94, 8-16-99, 1-31-05, 7-28-10, 5-6-15, 9-30-15, 2-6-17, 1-31-18,                 .

     

    NAME OF PERSON ORIGINATING PROPOSED RULE: Board of Accountancy

    NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Board of Accountancy

    DATE PROPOSED RULE APPROVED BY AGENCY HEAD: March 23, 2018

    DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: April 9, 2018

Document Information

Comments Open:
4/25/2018
Summary:
Language regarding violations and penalties will be updated.
Purpose:
The Board proposes the rule amendment to update violations and penalties.
Rulemaking Authority:
455.2273, 473.304 FS.
Law:
455.277, 455.2273, 473.323 FS.
Contact:
Veloria A. Kelly, Division Director, Board of Accountancy, 240 NW 76th Drive, Suite A, Gainesville, Florida 32607.
Related Rules: (1)
61H1-36.004. Disciplinary Guidelines; Range of Penalties; Aggravating and Mitigating Circumstances