The Board proposes rule amendments for continuing professional education, obligations of CPA ethics course continuing education providers, and inactive or delinquent Florida certified public accountants who desire to become ....

 

DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION

Board of Accountancy

RULE NOS.:RULE TITLES:

61H1-33.003:Continuing Professional Education

61H1-33.0033:Obligations of CPA Ethics Course Continuing Education Providers

61H1-33.006:Inactive or Delinquent Florida Certified Public Accountants Who Desire to Become Active Licensees

PURPOSE AND EFFECT: The Board proposes rule amendments for continuing professional education, obligations of CPA ethics course continuing education providers, and inactive or delinquent Florida certified public accountants who desire to become active licensees.

SUMMARY: The proposed amendments clarify the rule language for continuing professional education, obligations of CPA ethics course continuing education providers, and inactive or delinquent Florida certified public accountants who desire to become active licensees.

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 concluded that this rule change will not have any impact on licensees and their businesses or the businesses that employ them. The rule will not increase any fees, business costs, personnel costs, will not decrease profit opportunities, and will not require any specialized knowledge to comply. This change will not increase any direct or indirect regulatory costs. Hence, the Board 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: 455.213(7), 455.2178, 455.2179, 455.271, 473.304, 473.312, 473.313 FS.

LAW IMPLEMENTED: 455.213(7), 455.2178, 455.2179, 455.271, 473.312, 473.313, 559.79 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:

 

61H1-33.003 Continuing Professional Education.

(1)(a) Each Florida certified public accountant’s reestablishment period shall commence on the date indicated on the licensee’s Florida certificate. The initial designated reestablishment period for each Florida certified public accountant shall end on the third June 30th following the date indicated on the licensee’s Florida certificate. Each succeeding reestablishment period shall begin on July 1, and end on June 30, two years thereafter and ending in the year the license expires.

(b)(1)(a) In any given reestablishment period, except as stated below in subparagraph (1)(c) of this rule, each current/active Florida certified public accountant must have completed at any time or times during the two-year period, at least 80 hours of educational instruction or training in public accounting subjects or courses of study, as defined hereinafter, of which at least 8 hours must have been in accounting-related and/or auditing-related subjects and of which no more than 20 hours may be in behavioral subjects and at least four hours shall be in Florida Board-approved ethics. All CPE proof of completion must be reported in the DBPR On-Line Services portal on or before July 31 prior to their biennial license renewal.

(c) Effective with the reestablishment period ending June 30, 2024, the licensee must report courses completed and provide proof of CPE completion in the DBPR On-Line Services portal on or before July 31 immediately following the reestablishment period and prior to their biennial license renewal.

(d) A nonresident Florida licensed certified public accountant seeking renewal of a Florida license may provide proof of CPE completion in the State where the licensee’s office is located by submission of the Out of State Licensee CPE Acknowledgement Form (DBPR CPA 14, effective ______), which is incorporated by reference in Rule 61-35.003, F.A.C., and proof of completion of a Florida Board-approved ethics course in the DBPR On-Line Services portal prior to renewal. 

(e)(b) Florida certified public accountants who do not meet the requirements by June 30th will be granted an automatic extension until September 15th provided the licensee submits proof of CPE completion in the DBPR On-Line Services portal Florida certified public accountant completes for an additional eight8 hours in Accounting and Auditing subjects, totaling 88 hours of completed CPE on or before the extension date. An automatic extension will be granted until December 31st provided the licensee submits proof of CPE completion in the DBPR On-Line Services portalFlorida certified public accountant completes for an additional 16 hours in Accounting and Auditing subjects, totaling 96 hours of completed CPE on or before the extension date. For the reestablishment period ending June 30, 2020, current active licensees who complete continuing professional education (CPE) hours by December 31, 2020 are not required to complete the additional CPE hours referenced in this subsection. CPE hours approved for this extension shall apply solely to the reestablishment period ending June 30, 2020.

(2) – (3) No Change.

(4) In order for a Florida certified public accountant to receive credit for programs of learning, as defined above, the following formalities and further requirements must be met:

(a) Courses taken at institutions of higher education:

1. through 4. No Change.

5. To receive instructor credit for courses taught, licensees must submit a completed DBPR CPA 13, Instructor CPE Credit Reporting Form, which is incorporated by reference in Rule 61-35.003, F.A.C.

(b) No Change.

(5) As a part of each licensee’s biennial license renewal, eEach Florida certified public accountant shall, as a part of the biennial licensure renewal, on or before December 31 prior to his/her biennial license renewal, comply with the continuing professional education requirements during the applicable reestablishment period, and upload proof of CPE completion to the DBPR On-Line Services Portal. Each Florida certified public accountant’s proof of CPE completion documentation supporting such compliance shall be retained for at leastthrough the two years following a two-year reestablishment period and be made available if requested for a random. Documentation is to be retained to support evidence of completion of the required hours to enable an audit by the Department of Business and Professional Regulation (DBPR) to determine compliance with the requirements. Proof of CPE completionDocumentation for each course shall be in a format as prescribed by the Board in Rule 61H1-20.001(9), F.A.C to include course title and date, number of hours earned, attendee name, certified public accountant course provider name, number, and signature of the provider furnishing said certificate, and when requested shall be recorded using the Department’s form, entitled Continuing Professional Education Reporting Form (DBPR CPA 41, Effective June 2021), which is hereby incorporated by reference in Rule 61-35.003, F.A.C. The form is also available on the Department’s website and at the Board office located at 240 N.W. 76th Drive, Suite A, Gainesville, FL 32307-6655.

(6) If staff review or review by the Committee on Continuing Professional Education determines that courses are either improperly classified by the provider or do not otherwise meet the requirements of the chapter, then the Florida certified public accountant shall be notified and given 60 days from the date of notification to comply with the continuing professional education requirements. Florida certified public accountants who complete the continuing professional education requirements timely but who are found to be deficient after December 31 of their renewal year must correct the error and pay a $50 fine within 60 days of the aforementioned notice. Failure to timely correct the error and pay the fine shall consititutes grounds for disciplinary action pursuant to Section 455.227 or 473.323, F.S.

(6) will be renumbered as (7) No Change.

 

Rulemaking Authority 455.213(7), 455.2179, 473.304, 473.312 FS. Law Implemented 455.213(7), 455.2179, 473.312(1)(a), (b), (c) FS. History–New 12-4-79, Amended 2-3-81, 4-5-83, 10-19-83, 8-20-85, Formerly 21A-33.03, Amended 9-18-88, 7-7-92, 12-2-92, Formerly 21A-33.003, Amended 12-14-93, 1-26-98, 12-17-00, 8-21-01, 3-21-05, 5-18-05, 7-10-05, 7-23-06, 12-10-09, 7-7-10, 11-7-12, 8-7-13, 4-21-16, 11-3-19, 10-20-20, 12-23-21,                      .

 

61H1-33.0033 Obligations of CPA Ethics Course Continuing Education Providers.

To maintain an approved status as an ethics course continuing education provider, the provider must:

(1) No Change.

(2) Require each Florida certified public accountant to complete the entire four-hour certified public accountingaccountant ethics course requirement in order to receive proof of CPE completiona certificate of attendance. Offer the four-hour certified public accountingaccountant ethics course in one module of four credit hours or two modules of two credit hours.

(3) Furnish each attendee with an individual proof of CPE completion certificate of attendance in a format to include approved course title and completion date, number of hours earned, attendee name, DBPR course approval number, DBPR ethics provider numbercertified public accountant ethics course provider name, number, and signature by the provider furnishing said certificate after successful completion of the course. An attendance record shall be maintained by the provider for four years and shall be available for inspection by the Board. Providers shall maintain security of attendance records and attendance records.

(4) Ensure that all promotional material for courses or seminars offered to Florida certified public accountants for credit contain the certified public accountant DBPR course approval number, DBPR ethics provider number,ethics course provider number and course title.

(5) through (10) No Change.

 

Rulemaking Authority 455.213(7), 455.2178, 455.2179, 473.304, 473.312 FS. Law Implemented 455.213(7), 455.2178, 455.2179, 473.312(1)(a), (c) FS. History–New 5-18-05, Amended 10-26-09, 11-7-12,_____________.

 

61H1-33.006 Inactive or Delinquent Florida Certified Public Accountants Who Desire to Become Active Licensees.

(1) Each Florida certified public accountant who has requested inactive status or became delinquent, as distinguished from a Florida certified public accountant whose certificate or license has been suspended, who desires to become an active Florida certified public accountant, i.e., engage or reengage in the practice of public accounting in Florida, shall apply for such reactivation by completing and submitting to the Department, the CPA Change of Status Form (DBPR CPA 7), – CPA Change of Status ApplicationEffective June 2021). The form, which is hereby incorporated by reference in Rule 61-35.003, F.A.C., is provided by the Department and available on the Department’s website and the Board office located at 240 N.W. 76th Drive, Suite A, Gainesville, FL 326307-6655.

(2) However, if a licensee completed, reported, and provided proof of CPE completion in the DBPR On-line Services Portal pursuant to rule 61H1-33.003, F.A.C., but their license is delinquent on January 1 for failure to comply with Rule 61H1-33.003, F.A.C., through failure to report compliance with continuing professional education requirements and pay renewal fees by the preceding immediately prior December 31st, a Florida certified public accountant licensee may reactivate, pursuant to Section 473.311, F.S., by certifying the required hours have been completed, and by paying the renewal and reactivation fees required by Rules 61H1-31.003, 31.004 and 31.006, F.A.C., by March 15 of the same year of the delinquency.

(3)(2) For a licensee to reactivate a delinquent license after March 15 of the same year of the delinquency or to reactivate an inactive license at any time, theirEach such application shall include proof of CPEdemonstrate successful completion of the required number of continuing professional education hours as follows:

Accounting/Auditing	Ethics	Behavioral	Total Hours
At least 30 hours	At least 8 hours of Florida Board-approved ethics, unless the CPA has submitted proof of completion of their CPE for the previous biennium ending December 31 to the board by March 15, no additional hours are required to reactivate pursuant to subsection 61H1-33.006(1), F.A.C.	No more than 30 hours	120 Hours

(4)(3) All continuing professionalperfessional education courses must be completed no more than twenty-four (24) months immediately prior topreceding the date of the application for reactivation.

              (4) will be renumbered as (5) No Change.

 

Rulemaking Authority 455.271, 473.304, 473.312, 473.313 FS. Law Implemented 455.271, 473.312, 473.313, 559.79 FS. History–New 12-4-79, Amended 2-3-81, 11-6-83, 3-29-84, 8-20-85, Formerly 21A-33.06, Amended 4-8-86, 12-28-89, 10-16-90, Formerly 21A-33.006, Amended 12-14-93, 5-26-96, 7-23-06, 12-10-09, 7-7-10, 12-3-13, 7-29-18, 10-15-19, 12-23-21,               .

 

 

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: June 16, 2022