The Board proposes a rule amendment for disciplinary guidelines; range of penalties; aggravating and mitigating circumstances.

 

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 a rule amendment for disciplinary guidelines; range of penalties; aggravating and mitigating circumstances.

SUMMARY: The proposed amendments clarify the rule language for disciplinary guidelines; range of penalties; aggravating and mitigating circumstances.

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:

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: Roger Scarborough, Division Director, Board of Accountancy, 240 NW 76th Dr., Suite A, Gainesville, Florida 32607, [e-mail].

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

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

(1)(a) The board sets forth below a range of disciplinary guidelines from which disciplinary penalties will be imposed upon practitioners guilty of violating chapter 473, F.S. The purpose of the disciplinary guidelines is to give notice to licensees of the range of penalties which will normally be imposed upon violations of particular provisions of chapter 473, F.S. The disciplinary guidelines are based upon a single count violation of each provision listed. The brief description of each violation is provided for quick reference and is not meant to convey all elements of any given statutory provsion; the full language of each statutory provision cited must be consulted in order to determine the conduct involved. All penalties at the upper range of the sanctions set forth in the guidelines, i.e., suspension, revocation, etc., include lesser penalties, i.e., fine, probation or reprimand which may be included in the final penalty at the board’s discretion.

(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:

(a) through (z) No Change.

(aa) 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	Minimum	Maximum
1 to 16 hours	$1,000$500 fine, mandatory CPE audit participation for the next two re-establishment periods, and within 90 days of the final order, makeup missing hours plus 20 additional penalty hours, in the same category as those missed,. Iif missing CPE hours are ethics, penalty hours shall would consist of accounting/auditing., within 90 days of final order, must submit proof of compliance for next two renewal periods	$2,000$1,000 fine, mandatory CPE audit participation for the next two re-establishment periods, and within 90 days of the final order, makeup missing hours plus 20 additional penalty hours, in the same category as those missed,. Iif missing CPE hours are ethics, penalty hours shall 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, in the within same category as those missed, suspension until all hours are completed, and mandatory CPE audit participation for the next two re-establishment must submit proof of compliance for next two renewal periods	Suspension, $5,000$2,000 fine, makeup missing hours plus additional penalty hours equal to the number of those missed, within the same category as those missed, suspension until all hours are completed, and mandatory CPE audit participation for the next two re-establishment must submit proof of compliance for next two renewal periods
Second Offense
NUMBER OF HOURS LACKING
1 to 16 hours	$2,000$1,000 fine,  , mandatory CPE audit participation for the next two re-establishment periods, makeup missing hours plus 20 additional penalty hours, in the same category as those missed,. Iif missing CPE hours are ethics, penalty hours shall would consist of accounting/auditing., Ssuspension until all hours are completed.must submit proof of compliance for next two renewal periods	$5,000$2,000 fine, mandatory CPE audit participation for the next two re-establishment periods, makeup missing hours plus 20 additional penalty hours, in the same category as those missed,. Iif missing CPE hours are ethics, penalty hours shall would consist of accounting/auditing.,, Ssuspension until all hours are completed.,must submit proof of compliance for next two renewal periods
17 to 80 hours	$2,500$2,000 fine, makeup missing hours plus additional penalty hours equal to the number of those missed, within the same category as those missed, suspension until all hours are completed, and mandatory CPE audit participation for the next two re-establishment must submit proof of compliance for next two renewal periods	Suspension, $5,000 fine, makeup missing hours plus additional penalty hours equal to the number of those missed within the same category as those missed, and mandatory CPE audit participation for the next two re-establishment must submit proof of compliance for next two renewal periods
(bb) Fraudulent renewal of a license (Section 473.312, F.S., Rule 61H1-33.003, F.A.C.)	$5,000 fine, makeup missing hours plus additional penalty hours equal to the number of those missed and in the same category as those missed, suspension until all hours are completed, and mandatory CPE audit participation for the next two re-establishment periods	Revocation and up to $10,000 fine
(cc)(bb) 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 fine
(dd)(cc) Utilizing CPA designation without an active license (Section 473.322(1)(b), F.S., through a violation of Section 473.323(1)(a), F.S.)	Reprimand, completion of four penalty hours of Board-approved ethics continuing professional education hours	Suspension and $5,000$500 fine
(ee)(dd) Performing work described in Sections 473.302(8)(a), (d), F.S., (e.g. – audits, reviews, compilationscompliations, or attestation engagements) without an active individual and/or firm license (Section 473.322(1)(c), F.S., through a violation of Section 473.323(1)(a), F.S.)	Reprimand, $5,000$500 fine, completion of four penalty hours of Board-approved ethics, and eight penalty hours of aAccounting and /aAuditing continuing professional education hours	Suspension, and $10,000$1,000 fine, and completion of eight penalty hours of aAccounting and /aAuditing continuing professional education hours

(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, 6-18-18, 10-24-19,______________.

 

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: May 20, 2022

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: October 20, 2021