S 1202 Session 111 (1995-1996)
S 1202 General Bill, By J.V. Smith, Drummond, Fair, Land, Leventis, Martin,
Reese, Ryberg and G. Smith
Similar(H 4627)
A Bill to amend Title 40, Code of Laws of South Carolina, 1976, by adding
Chapter 2 so as to reenact the regulation of certified public accountants and
public accountants previously provided for in Chapter 1 of Title 40; to amend
Title 40, Chapter 1, as amended, relating to the regulation of certified
public accountants and public accountants, so as to delete all provisions and
to provide, among other things, for the powers and duties common to all
occupational and professional licensing boards under the administration of the
Department of Labor, Licensing and Regulation; and to repeal Chapter 73, Title
40, relating to professions and occupations administered by the Department of
Labor, Licensing and Regulation.
02/29/96 Senate Introduced and read first time SJ-7
02/29/96 Senate Referred to Committee on Labor, Commerce and
Industry SJ-7
A BILL
TO AMEND TITLE 40, CODE OF LAWS OF SOUTH CAROLINA,
1976, BY ADDING CHAPTER 2 SO AS TO REENACT THE
REGULATION OF CERTIFIED PUBLIC ACCOUNTANTS AND
PUBLIC ACCOUNTANTS PREVIOUSLY PROVIDED FOR IN
CHAPTER 1 OF TITLE 40; TO AMEND TITLE 40, CHAPTER 1,
AS AMENDED, RELATING TO THE REGULATION OF
CERTIFIED PUBLIC ACCOUNTANTS AND PUBLIC
ACCOUNTANTS, SO AS TO DELETE ALL PROVISIONS AND
TO PROVIDE, AMONG OTHER THINGS, FOR THE POWERS
AND DUTIES COMMON TO ALL OCCUPATIONAL AND
PROFESSIONAL LICENSING BOARDS UNDER THE
ADMINISTRATION OF THE DEPARTMENT OF LABOR,
LICENSING AND REGULATION; AND TO REPEAL CHAPTER
73, TITLE 40, RELATING TO PROFESSIONS AND
OCCUPATIONS ADMINISTERED BY THE DEPARTMENT OF
LABOR, LICENSING AND REGULATION.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Title 40 of the 1976 Code is amended by adding:
"CHAPTER 2
Accountants
Article 1
Regulation of Certified Public Accountants
and Public Accountants
Section 40-2-10. A person is deemed to be practicing public
accounting as a certified public accountant within the meaning of this
article who displays a sign or in any way holds himself out as a
certified public accountant.
Section 40-2-20. A person is be deemed to be practicing public
accounting as a public accountant within the meaning of this article
who displays a sign or in any way holds himself out as a public
accountant.
Section 40-2-30. It is unlawful for a person to hold himself out as
a certified public accountant or to use the title `certified public
accountant' or the designation `CPA' in this State unless the person
has obtained a certificate of registration from the South Carolina
Board of Accountancy as provided in this article. It is unlawful for a
partnership to hold itself out as a partnership of certified public
accountants unless it is registered with the South Carolina Board of
Accountancy and:
(1) At least one general partner is a certified public accountant
of this State in good standing;
(2) Each partner personally engaged within this State in the
practice of public accounting as a member of the partnership is a
certified public accountant of this State in good standing;
(3) Each partner is a certified public accountant in good
standing of some state of the United States;
(4) Each resident manager in charge of an office of the firm in
this State is a certified public accountant of this State in good
standing. Application for registration must be made upon the
affidavit of a general partner of the partnership who is a certified
public accountant of this State in good standing. The board shall
determine whether the applicant is eligible for registration. A
partnership which is registered may use the words `certified public
accountants' or the designation `CPA's' in connection with its
partnership name. Notification must be given the board, within one
month, after the admission to or withdrawal of a partner from a
registered partnership.
No person may assume or use the title or designation `certified
public accountant' in conjunction with names indicating or implying
that there is a partnership or in conjunction with the designation `and
Company' or `and Co.' or a similar designation if there is in fact no
bona fide partnership; however, a sole proprietor or partnership
lawfully using that title or designation in conjunction with names or
designation on July 1, 1965, may continue to do so if the person or
partnership otherwise complies with this article.
Section 40-2-40. It is unlawful for a person to hold himself out as
a public accountant or to use the title `public accountant' or the
designation `PA' in this State unless the person has obtained a license
as a public accountant from the South Carolina Board of Accountancy
as provided in this article. It is unlawful for a partnership to hold itself
out as a partnership of public accountants unless it is registered as a
partnership by the South Carolina Board of Accountancy and:
(1) At least one general partner is a certified public accountant
or a public accountant of this State in good standing;
(2) Each partner personally engaged within this State in the
practice of public accounting as a member of the partnership is a
certified public accountant or a public accountant of this State in good
standing;
(3) Each partner is a certified public accountant or a registered
or licensed public accountant in good standing of some state of the
United States;
(4) Each resident manager in charge of an office of the firm in
this State is a certified public accountant or a public accountant of this
State in good standing.
Application for registration must be made upon the affidavit of a
general partner of the partnership who is a public accountant of this
State in good standing. The board shall determine whether the
applicant is eligible for the license. A partnership which is registered
may use the words `public accountants' or the designation `PA's' in
connection with its partnership name. Notification must be given the
board, within one month, after the admission to or withdrawal of a
partner from a registered partnership.
Section 40-2-50. (A) No person may sign or affix his name or any
trade or assumed name used by him in his profession or business, or a
partnership name, with wording indicating that he is a certified public
accountant or public accountant, or that the partnership is composed
of certified public accountants or public accountants, or with any
wording indicating that he has, or the partnership is composed of
persons having, expert knowledge in accounting or auditing, to any
opinion or certificate attesting in any way to the reliability of a
representation in regard to a person or organization embracing
financial information or facts respecting compliance with conditions
established by law or contract including, but not limited to, statutes,
ordinances, regulations, grants, loans, and appropriations, unless he or
it holds a certificate of registration or license issued pursuant to this
article. This subsection does not prohibit an officer, employee,
partner, or principal of an organization from affixing his signature to
a statement or report in reference to the financial affairs of the
organization with any wording designating the position, title, or office
which he holds in the organization, and this subsection does not
prohibit an act of a public official or public employee in the
performance of his duties.
(B) No person, not registered or licensed under this article, may
sign or affix the name of a professional association with wording
indicating that it is a professional association performing services as
accountants or auditors or composed of accountants or auditors or
persons having expert knowledge in accounting or auditing, to an
opinion or certificate attesting in any way to the existence or
nonexistence of facts in regard to a person or organization including,
but not limited to, facts relating to financial position and results of
operations and facts relating to compliance with a contract, law,
ordinance, or regulation.
(C) No person, partnership, or professional association not
registered or licensed under this article may permit his or its name to
be associated with statements purporting to show financial position or
results of operations in regard to a person or organization in a manner
as to imply that he has, or it is composed of, persons having expert
knowledge in accounting or auditing, or in a manner as to state or
imply that he or it is licensed under Article 3 unless he or it declaims
an opinion on the statements and in connection with the statements
indicates clearly that the statements were not audited by him or it and
that he or it is prohibited by law from expressing an opinion on the
statements. This subsection does not require an officer, employee,
partner, or principal of an organization affixing his signature to a
statement or report in reference to the financial affairs of the
organization with wording designating the position, title, or office
which he holds in the organization to state a disclaimer, and this
subsection does not apply to an act of a public official or public
employee in the performance of his duties.
(D) No person or partnership, not registered or licensed under this
article, and no professional association, may hold himself or itself out
to the public as an `accountant' or `auditor' by use of a title composed
of or indicating either or both by words on a sign, card, letterhead, or
in an advertisement or directory, without plainly indicating that the
person, partnership, or professional association does not hold a
registration or license. This subsection does not prohibit an officer,
employee, partner, or principal of an organization from describing
himself by the position, title, or office he holds in the organization,
and this subsection does not prohibit any act of a public official or
public employee in the performance of his duties.
(E) No person, partnership, or professional association shall
assume or use the title or designation `certified accountant', `chartered
accountant', `enrolled accountant', `licensed accountant', `registered
accountant', or any other title or designation likely to be confused
with `certified public accountant' or `public accountant', or any of the
abbreviations `CA', `AP', `EA', `RA', or `LA', or similar abbreviations
likely to be confused with `CPA' or `PA'. A person or partnership
registered or licensed under this article as a certified public
accountant or public accountant or as a firm of certified public
accountants or public accountants may hold himself or itself out to
the public as an `accountant' or `auditor' or as a firm of accountants or
auditors.
Section 40-2-60. Professional associations may be licensed and
operate as certified public accountants, public accountants, and
accounting practitioners and must be governed by this chapter and
any provision applying to partnerships in this chapter requiring
certain qualifications or requirements of a partner or partners must
apply to a member or members of the professional association. All
persons licensed as certified public accountants, public accountants,
and accounting practitioners may practice and operate in any form or
manner provided by law. For purposes of this chapter, `professional
association' means professional association or professional
corporation.
Section 40-2-70. There is created the South Carolina Board of
Accountancy which shall carry out the purposes and enforce the
provisions of this chapter. The members of the board must be
appointed by the Governor.
Section 40-2-80. The board consists of nine members: five
licensed certified public accountants, two licensed public accountants
or licensed accounting practitioners, and two public members who are
not engaged in the practice of public accounting, have no financial
interest in the profession of public accounting, and have no
immediate family member in the profession of public accounting. As
used in this section, `immediate family member' is defined in Section
8-13-100(18). Members must be appointed by the Governor for terms
of three years and until their successors are appointed and qualify.
Vacancies may be filled by the Governor for unexpired terms. The
Governor shall remove a member of the board for neglect of duty or
other just cause.
Section 40-2-100. A majority of the membership of the board
constitutes a quorum and action must be by majority vote. The board
may provide for proxy voting by absent members.
Section 40-2-110. The members of the board shall qualify by
taking the oath of office before a notary public or other officer
empowered to administer oaths and a record of this must be filed in
the office of the Secretary of State. At the first meeting of the board
after each annual appointment the board shall elect a chairman, a
vice-chairman, and a secretary-treasurer. The secretary-treasurer shall
obtain a bond as the board directs.
Section 40-2-120. Members may receive per diem and expenses
for each day actually engaged in the duties of the office and mileage
at the rate provided by law for state employees for all distances
necessarily traveled in going to and from the meetings of the board.
These expenses must be paid from fees and licenses received by the
board under this article and no part of the salary or other expenses of
the board may be paid out of the State Treasury.
Section 40-2-130. Regular meetings for purpose of examinations
must be held at least once a year at such place and time as the
chairman of the board considers most convenient for applicants. Due
notice of meetings for examinations must be given by publication in
papers selected by the chairman. The chairman may call from time to
time other meetings necessary to the business of the board and shall
call a meeting at any time upon the written request of three members
of the board.
Section 40-2-140. The board may prescribe rules, regulations,
and bylaws, in harmony with this chapter, for its own proceedings and
government and for the examination of applicants for the practice of
accounting. The board may promulgate and amend regulations of
professional conduct appropriate to establish and maintain a high
standard of integrity and dignity in the profession of public
accountancy. Within sixty days after the promulgation of a regulation
or amendment, the board shall mail copies of the regulation or
amendment to each holder of a license issued under this article, with a
notice advising him of the effective date of the regulation or
amendment. Failure to mail the regulation, amendment, or notice to
all license holders does not affect the validity of the regulation or
amendment. The board, or any member of the board, may issue
subpoenas to compel the attendance of witnesses and the production
of documents and may administer oaths, take testimony, hear proofs,
and receive exhibits in evidence for all purposes required in the
discharge of its duties. In case of disobedience to a subpoena the
board may invoke the aid of an administrative law judge as provided
under Article 5 of Chapter 23 of Title 1 in requiring the attendance
and testimony of witnesses and the production of documentary
evidence and shall adopt a seal to be affixed to all its official
documents.
Section 40-2-150. The board shall collect fees which must be
deposited in the general fund of the State, in an amount to at least
equal the amount appropriated annually in the general appropriations
act for the Board of Accountancy.
Section 40-2-160. The board shall make an annual report as
provided by law as soon as practicable after the close of its fiscal year
which shall end on June thirtieth.
Section 40-2-170. A person, before beginning to practice as a
certified public accountant in this State, shall pass an examination
before the Board of Accountancy in accounting and auditing and
related subjects as the board determines to be appropriate.
Section 40-2-180. (A) An applicant making application for
examination shall submit evidence satisfactory to the board that the
applicant:
(1) is at least eighteen years of age;
(2) does not have a history of dishonest or felonious acts;
(3) has the following educational background:
(a) Before July 1, 1997, each applicant must have a
baccalaureate degree from a college or university recognized by the
board including a minimum of twenty-four hours or the equivalent in
accounting hours.
(b) After June 30, 1997, each applicant must have at least
one hundred fifty semester hours of college education including a
baccalaureate or higher degree conferred by a college or university
acceptable to the board, the total educational program to include an
accounting concentration or equivalent as determined by board rule to
be appropriate.
(B) The educational requirements are waived for a candidate who
is a South Carolina public accountant licensed and in good standing
under this article or who, on July 1, 1965, was practicing as a public
accountant or who then was employed as a staff accountant in this
State by anyone practicing public accounting.
Section 40-2-190. The examination provided for in Section
40-2-170 must be held by the board at least once each year.
The board shall advertise the dates of the examinations at least
eight weeks before the date set in a newspaper so as to provide
adequate statewide notice. Beginning in 1986, the dates set in a
newspaper must be at least by September first for the November
examination and by March first for the May examination.
The board may make use of all or any part of the uniform certified
public accountants' examination or advisory grading service as it
considers appropriate to assist it in performing its duties.
A candidate for the certificate of certified public accountant who
has successfully completed the examination required under Section
40-2-170 has no status as a certified public accountant unless and
until he has the requisite experience and has received his certificate as
a certified public accountant. The experience required is either:
(1) two years of accounting experience in public,
governmental, or private employment under the direct supervision
and review of a certified public accountant licensed to practice
accounting in some state or territory of the United States or the
District of Columbia;
(2) five years', experience teaching accounting in a college or
university recognized by the board; or
(3) a combination of experience determined by the board to be
substantially equivalent to items (1) and (2). The experience must
include experience satisfactory to the board, in applying generally
accepted auditing standards to financial statements prepared in
accordance with generally accepted accounting principles.
The board by regulation may provide for granting a credit to a
candidate for satisfactory completion of a written examination in one
or more of the subjects provided in Section 40-2-170 given by the
licensing authority in another state if at the time he took the
examination he was not a resident of this State. The regulation must
include requirements the board determines appropriate in order that
an examination approved as a basis for credit is, in the judgment of
the board, at least as thorough as that included in the most recent
examination given by the board at the time of the granting of credit.
The board by regulation may prescribe the terms and conditions
under which a candidate who passes the examination in one or more
of the subjects provided by Section 40-2-170 may be reexamined in
only the remaining subjects, with credit for the subjects previously
passed. It also may provide by regulation for a reasonable waiting
period for a candidate's reexamination in a subject he has failed.
The board shall charge each candidate a fee, to be determined by
the board, not in excess of two hundred dollars for the initial
examination provided for in Section 40-2-170.
Fees for reexamination provided by this section are charged by the
board in amounts determined by it, but not in excess of eighty dollars
for each subject in which the candidate is reexamined.
An application for examination or reexamination as prescribed by
the board must be submitted and the applicable fee paid at least five
weeks before the date of the examination. The application must be
submitted and the applicable fee paid by September fifteenth for the
November examination and by March fifteenth for the May
examination.
Section 40-2-200. Certificates of registration as a certified public
accountant issued by the board must be signed by the chairman and
secretary-treasurer, and the board shall collect from the recipient a fee
to be fixed by the board.
A person who holds a certificate of registration as a certified public
accountant under this article, which is in full force and effect, may be
styled and known as a `certified public accountant' and also may use
the designation `CPA'. A certified public accountant also may be
known as a `public accountant'. The board shall maintain a list of
certified public accountants.
A person who holds a license as a public accountant under this
article, which is in full force and effect, may be styled and known as a
`public accountant' and also may use the designation `PA'. The board
shall maintain a list of public accountants.
Section 40-2-210. The board shall keep a register in which must
be recorded the names of all persons examined and whether or not the
applicants successfully passed the examination or any part of the
examination.
Section 40-2-220. Before a certificate is issued it must be
numbered and recorded in a book kept by the secretary-treasurer of
the board. In all legal proceedings this record of certificates or a
certified copy of the record is evidence of the facts stated in the
record.
Section 40-2-230. Persons who, on July 1, 1965, held certified
public accountant certificates issued under the laws of this State are
not required to obtain additional certificates under this article, but are
subject to all other provisions of this article, and these certificates, for
all purposes, must be considered certificates issued under this article
and subject to this article.
Section 40-2-240. (A) The board, upon application in writing,
may waive the examination referred to in Section 40-2-170 and issue
a certificate to a person who is the holder of a certificate, or the
equivalent, as a certified public accountant issued under the laws of
any state or territory of the United States or the District of Columbia
and:
(1) who has the qualifications required by this article and the
regulations of the board; or
(2) when, in the judgment of the board, the requirements for
issuing or granting certificates in the other state, territory, or the
District of Columbia are substantially equivalent to the requirements
established by this article and the regulations of the board, and the
other state or political subdivision of the United States grants the
same privileges to holders of certificates issued by this State.
(B) The board, upon application in writing, may waive the
examination referred to in Section 40-2-170 and issue a certificate to
a holder of a foreign designation, granted in a foreign country
entitling the holder to engage in the practice of public accountancy if:
(1) the foreign authority which granted the designation makes
similar provisions to allow a person who holds a valid certificate
issued by this State to obtain the foreign authority's comparable
designation;
(2) the foreign designation:
(a) was issued by a foreign authority that regulates the
practice of public accountancy and the foreign designation has not
expired or been revoked or suspended;
(b) entitles the holder to issue reports upon financial
statements; and
(c) was issued upon the basis of educational, examination,
and experience requirements by the foreign authority or by law; and
(3) the applicant:
(a) received the designation based on educational and
examination standards substantially equivalent to those in effect in
this State at the time the foreign designation was granted;
(b) completed an experience requirement substantially
equivalent to the requirement set out in Section 40-2-190 and
regulations of the board; and
(c) passed a uniform qualifying examination in national
standards acceptable to the board.
Section 40-2-250. A person who holds a valid and unrevoked
certificate as a certified public accountant issued under the authority
of a state of the United States or who lawfully practices as a
registered and licensed public accountant in a state of the United
States, and who resides without the State of South Carolina, may hold
himself out within South Carolina as a certified public accountant or
as a public accountant if he registers with the board and complies
with its regulations regarding registration. A fee to be fixed by the
board must be charged for the registration or reregistration. A
partnership, each partner of which is a certified public accountant in
good standing of some state of the United States or a registered or
licensed public accountant lawfully practicing in some state of the
United States, may be considered one person for the purposes of this
section.
Section 40-2-270. A registered certified public accountant, public
accountant, or accounting practitioner who desires to continue to
practice in this State must meet the following requirements on or
before the dates indicated:
(1) pay to the secretary of the board annually on or before July
first a license fee, to be fixed by the board; and
(2) annually, on or before the last day of February of each year,
file with the board, on a form or forms prescribed by the board for
this purpose, a certificate of compliance with the continuing
education requirements necessary for license renewals as required by
Section 40-2-380.
The board, by regulation, may provide a penalty not to exceed five
hundred dollars for each violation for failure to comply with item (1)
or (2) above.
Upon payment of the fee, any penalty required, and filing of the
certificate in proper form, the secretary of the board shall issue a
license entitling the applicant to practice in this State until July first of
the following year.
The board may, in its discretion, reduce or waive the above
requirements in cases of illness, mental or physical incapacity,
retirement from practice, and similar situations.
Section 40-2-280. In case of default in payment by a person, the
person's certificate of registration as a certified public accountant or
license as a public accountant must be revoked by the board upon
twenty days' notice in writing by the secretary-treasurer of the time
and place of considering the revocation. The deposit of the notice in
the United States post office addressed to the person at his last known
place of residence or business and registered postage prepaid is
presumed to be due and legal service of the notice. No certificate of
registration as a certified public accountant or license as a public
accountant may be revoked for nonpayment if the person notified
pays a penalty as imposed by the board, not exceeding seventy-five
dollars. A person whose certificate of registration as a certified
public accountant or license as a public accountant has been revoked
for failure to pay his renewal fee may apply to have it regranted to
him upon payment to the board of penalties established and all
renewal fees that should have been paid had the certificate of
registration as a certified public accountant or license as a public
accountant not been revoked.
Section 40-2-290. (A) After notice and hearing pursuant to
Section 40-2-310, the board may revoke a certificate as a certified
public accountant or license as a public accountant issued under this
article; suspend a certificate or license for a period of not more than
five years; reprimand, censure, or limit the scope of practice of a
certificate holder or licensee; impose an administrative fine not
exceeding one thousand dollars; or place a certificate holder or
licensee on probation, all with or without terms, conditions, and
limitations, for:
(1) fraud or deceit in obtaining a certificate or license;
(2) cancellation, revocation, suspension, or refusal to renew
authority to engage in the practice of public accountancy in another
state, territory of the United States, or the District of Columbia, for
any cause;
(3) revocation or suspension of the right to practice before a
state or federal agency;
(4) dishonesty, fraud, or gross negligence in the practice of
public accountancy or in the filing or failure to file the certificate
holder's or licensee's own income tax returns;
(5) violation of a provision of this article or a regulation
promulgated by the board under the authority granted by this article;
(6) violation of a rule of professional conduct promulgated by
the board under the authority granted by this article;
(7) conviction of a felony, or a crime, an element of which is
dishonesty or fraud, under the laws of the United States, of this State,
or any other state if the acts involved would have constituted a crime
under the laws of this State. The record of conviction, or a copy of
the record, certified by the clerk of court or the judge in whose court
the conviction is had, is conclusive evidence of the conviction. The
word `conviction' includes a plea of guilty or a plea of nolo
contendere;
(8) performance of a fraudulent act while holding a certificate
or license under this article; or
(9) conduct reflecting adversely upon the certificate holder's or
licensee's fitness to engage in the practice of public accountancy.
(B) In lieu of or in addition to a remedy specifically provided in
subsection (A), the board may require one or both of the following
requirements of a certificate holder or licensee:
(1) a quality review conducted in a fashion as the board may
require; or
(2) satisfactory completion of continuing professional
education programs as the board may specify.
A `quality review' means a study, appraisal, or review of one or
more aspects of the professional work of a person or firm in the
practice of public accountancy by a person or persons who hold
certificates or licenses and who are not affiliated with the person or
firm being reviewed.
(C) In a proceeding in which a remedy imposed by subsections
(A) and (B) of this section is imposed, the board also may require the
respondent certificate holder or licensee to pay the costs of the
proceeding.
Section 40-2-300. After notice and hearing, as provided in
Section 40-2-310, the board shall revoke the registration or license of
a partnership if at any time it does not meet the requirements
prescribed by Section 40-2-30 or 40-2-40 and may revoke or suspend
the registration or license of a partnership for any of the causes
enumerated in Section 40-2-290 or for:
(1) the revocation or suspension of the certificate of
registration or the revocation or suspension or refusal to renew the
license to practice of a partner; or
(2) the cancellation, revocation, suspension, or refusal to renew
the authority of the partnership or a partner to practice public
accounting in another state for a cause other than failure to pay an
annual registration fee in another state.
Section 40-2-310. (A) The board may initiate proceedings under
this article either on its own motion or on the complaint of a person.
(B) A written notice, stating the nature of the charge against the
accused and the time and place of the hearing before the board on the
charge, must be served on the accused not less than thirty days before
the date of the hearing, either personally or by mailing a copy by
registered mail to the address of the accused last known to the board.
(C) If, after having been served with the notice of hearing as
provided for in subsection (C), the accused fails to appear at the
hearing and defend, the board may proceed to hear evidence against
the accused and may enter an order as is justified by the evidence,
which order must be final unless the accused petitions for a review as
provided for in subsection (I); however, within thirty days from the
date of an order, upon showing of good cause for failing to appear
and defend, the board may reopen the proceedings and may permit
the accused to submit evidence in his behalf.
(D) At a hearing the accused may appear in person and by counsel
produce evidence and witnesses on his own behalf, cross-examine
witnesses, and examine evidence as may be produced against him.
The accused must be entitled, on application to the board, to the
issuance of subpoenas to compel the attendance of witnesses on his
behalf.
(E) The board is not bound by technical rules of evidence.
(F) A record of the hearings must be kept and filed with the
board.
(G) At all hearings the Attorney General of this State, or one of
his assistants designated by him, or other legal counsel as may be
employed, shall appear and represent the board.
(H) The decision of the board must be by majority vote, except a
decision to revoke the permit must be by unanimous vote of those
voting.
(I) A person adversely affected by an order of the board may
obtain a review by filing a written petition for review with an
administrative law judge, as provided under Article 5 of Chapter 23
of Title 1, within thirty days after the entry of the order. The petition
shall state the grounds upon which the review is asked. A copy of the
petition must be served upon a member of the board, and the board
shall certify and file with the administrative law judge as provided
under Article 5 of Chapter 23 of Title 1, a copy of the record upon
which the order complained of was entered. The administrative law
judge, as provided under Article 5 of Chapter 23 of Title 1, may, in its
discretion, stay the effect of the board's order pending its
determination of the case.
Section 40-2-320. Upon application in writing and after hearing
pursuant to notice, the board may issue a new certificate to a certified
public accountant whose certificate has been revoked or may permit
the reregistration of anyone whose registration has been revoked or
may reissue or modify the suspension of a license to practice public
accounting which has been revoked or suspended.
Section 40-2-330. An office established or maintained in this
State for the practice of public accounting by a certified public
accountant or partnership or professional association of certified
public accountants or public accountant or partnership or professional
association of public accountants must be registered under this article
with the board, but no fee may be charged for registration. An office
must be under the direct supervision of a resident manager who may
be either a partner or a staff employee holding a license under this
article which is in full force and effect. The board must be advised of
change of management of an office in each location.
Section 40-2-340. A person who violates a provision of this
article is guilty of a misdemeanor and, upon conviction, must be fined
not less than fifty dollars or more than two hundred dollars or
imprisoned not less than twenty days or more than sixty days. Each
violation constitutes a separate offense and each day's violation
constitutes a separate offense.
Section 40-2-350. In addition to another remedy or criminal
prosecution, if it appears to the board that a person violated a
provision of this article or a regulation or order of the board or a law
of this State relating to accountancy, the board may file a suit in
equity in its own name, or in the name of the State, on its own
relation, and by its counsel, with an administrative law judge, as
provided under Article 5 of Chapter 23 of Title 1, alleging the facts
and praying for a temporary restraining order or permanent injunction
against the person, restraining the person from violating the law,
regulation, or order, or commanding the person to obey the law,
regulation, or order.
Upon proper application, and showing that the person is not
registered or that a renewal certificate has not been applied for or that
registration has been denied, revoked or suspended, or that the law or
regulation or order has been or is about to be violated or disobeyed,
which showing may be made by affidavit, the administrative law
judge, as provided under Article 5 of Chapter 23 of Title 1, shall issue
a temporary restraining order or injunction and, upon final hearing,
shall grant and issue an injunction, including mandatory injunction,
upon finding the truth and sufficiency of the allegations of the
petition. An administrative law judge, as provided under Article 5 of
Chapter 23 of Title 1, may enforce the injunction by punishment for
contempt and by other process as is permitted to circuit courts and
shall make other orders as its discretion and the rules require. The
injunction may be limited in time, perpetual or conditional, as may be
necessary and proper to the enforcement of this article or the
regulations or orders of the board or the law of this State relating to
accountancy.
Section 40-2-360. All statements, records, schedules, working
papers, and memoranda made by a certified public accountant or
public accountant incident to or in the course of professional service
to clients, except reports submitted to a client, are the property of the
accountant, in the absence of an express agreement between the
accountant and the client to the contrary.
Section 40-2-370. If a statute or regulation of a state agency
requires that reports, financial statements, audits, and other
documents for a department, division, board, commission, or agency
of this State be prepared by a certified public accountant, the
requirement must be construed to mean licensed public accountants or
certified public accountants.
Section 40-2-380. The board shall promulgate regulations
implementing the requirements and reporting for continuing
education which must be met by certified public accountants, public
accountants, and accounting practitioners. The board shall require no
less than sixty hours of continuing educational activities in a two-year
period. The board shall require compliance with the regulations as a
prerequisite to the issuance of a current license to practice as a
certified public accountant, public accountant, or accounting
practitioner. The requirements may be waived by the board in
individual cases for good cause.
In promulgating these regulations, the board shall recognize the
following as meeting the continuing educational requirements:
(1) professional development programs of national and state
accounting organizations. Only class hours, or the equivalent, and not
students' hours devoted to preparation are counted;
(2) technical sessions at meetings of national and state
accounting organizations and their chapters;
(3) courses offered by colleges, universities, technical
education centers, and other appropriate educational institutions,
including credit and noncredit courses. Each semester-hour credit
equals fifteen hours toward the requirement; each quarter-hour credit
equals ten hours. In noncredit courses, each classroom hour equals
one qualifying hour.
(4) other activities, methods, procedures, devices, and
programs which, in the opinion of the board, contribute directly to the
professional competence of the licensee.
Article 3
Regulation of Accounting Practitioners
Section 40-2-510. A person, firm, or professional association not
exempt under Section 40-2-530 is considered to be engaged in the
practice of offering to render and rendering to the public the services
which are regulated by this article if the person, firm, or professional
association:
(1) offers to prospective clients in South Carolina to perform
for compensation one or more of these services:
(a) the development, recording, analysis, or presentation of
financial information including, but not limited to, the preparation of
financial statements; or
(b) advice or assistance in regard to accounting controls,
systems, and procedures; and
(2) in any manner holds himself or itself out to the public in
South Carolina as skilled in one or more of the types of services
described in item (1).
Section 40-2-520. (A) No professional association, person, or
partnership, other than a person or partnership holding a permit to
practice issued pursuant to this article, may engage in the practice
defined in Section 40-2-510 unless he or it plainly indicates on all
signs, cards, letterheads, advertisements, and directories used to
disclose his or its practice or business that he or it does not hold a
license to practice under this article.
(B) No professional association, person, or partnership, other than
a person or partnership holding a permit to practice issued pursuant to
this article, may assume or use the title or designation `Accounting
Practitioner' or any other title, designation, words, letters,
abbreviation, sign, card, or device tending to indicate that the person
is an accounting practitioner or that the partnership is composed of
accounting practitioners or that the person, partnership, or
professional association is authorized under this article to engage in
the practice defined under Section 40-2-510.
Section 40-2-530. Nothing contained in this article:
(1) applies to a certified public accountant or public accountant
who holds a license to practice issued under the law of South Carolina
and no provision of this article applies to a partnership of certified
public accountants or public accountants which holds a permit to
practice issued under South Carolina authority;
(2) applies to a person, firm, or professional association which
plainly indicates on all signs, cards, letterheads, advertisements, and
directories used to disclose his or its practice or business that he or it
does not hold a license to practice under this article;
(3) prohibits a person from serving as an employee of a person,
partnership, or professional association if the employee does not
engage in the practice defined in Section 40-2-510 on his own
account;
(4) prohibits a person, partnership, or professional association
from offering to prepare or from preparing a tax return with respect to
taxes imposed by a governmental authority, whether federal, state, or
local, and this article does not prevent a person from advising clients
in connection with tax matters;
(5) prohibits a person, partnership, or professional association
holding a license or permit issued by another state, territory, or the
District of Columbia, which authorizes the person, partnership, or
professional association to engage in the other jurisdiction in the type
of practice described in Section 40-2-510, from temporarily practicing
in this State as an incident to his or its regular practice outside of this
State if the temporary practice is conducted in conformity with the
rules of ethical conduct promulgated by the board;
(6) applies to the affixing of the signature or name of an
officer, employee, partner, or principal of an organization to a
statement or report in reference to the financial affairs of the
organization with wording designating the position, title, or office
which he holds in the organization, and the provisions of this article
do not apply to an act of a public official or public employee in the
performance of his duties;
(7) applies to the offering or rendering of data processing
services by mechanical or electronic means or to the offering or
rendering of services in connection with the operation, sale, lease,
rental, or installation of mechanical or electronic bookkeeping or data
processing equipment or to the sale, lease, rental, or installation of
this equipment.
Section 40-2-540. The South Carolina Board of Accountancy
shall examine, license, and discipline accounting practitioners. The
board may charge a reasonable fee for examinations, not exceeding
the fee charged for certified public accountants' examinations.
Section 40-2-550. In order to be eligible for licensing under this
article as an accounting practitioner, an applicant may not hold
another license granted under this chapter and must:
(1) not have any history of dishonest or felonious acts;
(2) be a resident of this State or have a place of business in this
State, or, as an employee, be regularly employed in this State;
(3) be at least eighteen years of age; and
(4) meet one or more of these requirements:
(a) pass a written examination approved by the board, which
is designed to test the applicant's basic knowledge of the subjects
described in Section 40-2-510(1) and which may consist of two parts
of the examination administered to certified public accountant
applicants or another examination as the board may prescribe.
(b) have a bachelor's degree with a major in accounting as
determined by the board from a four-year college or university
accredited by the Southern Association of Colleges and Schools or
from a college or university having equivalent standards as
determined by the board.
(c) be licensed and hold a current annual permit to practice
in this State as a certified public accountant or public accountant if
the person surrenders his license and permit to practice as a certified
public accountant or public accountant upon being licensed as an
accounting practitioner.
Section 40-2-560. (A) Licenses must be issued by the board to
persons satisfying the requirements of Section 40-2-550 upon the
payment of a license fee in an amount to be determined by the board.
(B) Permits to engage in the practice defined in Section 40-2-510
must be issued by the board for annual periods expiring on the last
day of June to persons and partnerships as follows:
(1) A person holding a license issued pursuant to Section
40-2-510(1)(a), upon payment of a permit fee in an amount to be
determined by the board. The board may reduce or waive the fee in
case of illness, mental or physical incapacity, retirement from
practice, or for similar situations. Failure of a licensee to pay the fee
for a permit to practice within three years from the expiration date of
the permit to practice last obtained or used or within three years from
the date upon which the licensee was granted the license if no permit
was ever issued to him, deprives him of the right to the permit unless
the board determines the failure to have been caused by excusable
neglect. The decision of the board is final. A renewal fee for the
issuance of the original license must be in an amount the board
determines.
(2) Partnerships, without payment of a permit fee, which meet
the following standards:
(a) At least one general partner must be an accounting
practitioner of this State in good standing;
(b) Each partner personally engaged within this State in the
practice defined in Section 40-2-510 must be an accounting
practitioner of this State in good standing;
(c) Each partner must be lawfully engaged in the practice, as
defined in Section 40-2-510, in some state of the United States;
(d) Each resident manager in charge of an office must be an
accounting practitioner of this State in good standing.
(3) File with the secretary of the board on a form prescribed by
the board for this purpose a certificate of compliance with the
continuing education requirements necessary for license renewal as
required by Section 40-2-380. In case of default in the payment of the
license fee by a person, Section 40-2-280 applicable to certified
public accountants and public accountants applies in all respects to
accounting practitioners.
Section 40-2-570. (A) After notice and hearing pursuant to
Section 40-2-310 the board may revoke a license or permit as
accounting practitioner issued under this article; suspend a license or
permit for a period of not more than five years; reprimand, censure, or
limit the scope of practice of a license or permit holder; impose an
administrative fine not exceeding one thousand dollars; or place a
license or permit holder on probation, all with or without terms,
conditions, and limitation, for any one or more of these reasons:
(1) fraud or deceit in obtaining a license or permit;
(2) cancellation, revocation, or suspension of, or refusal to
renew authority to engage in the practice of public accountancy in
another state, territory of the United States, or the District of
Columbia for any cause;
(3) revocation or suspension of the right to practice before a
state or federal agency;
(4) dishonesty, fraud, or gross negligence in the practice of
public accounting or in filing or failure to file the license or permit
holder's own income tax return;
(5) violation of a provision of this article or Article 1 or a
regulation promulgated by the board under the authority granted by
this chapter;
(6) violation of a rule of professional conduct promulgated by
the board under the authority granted by this chapter;
(7) conviction of a felony, or any crime an element of which is
dishonesty or fraud, under the laws of the United States, of this State,
or another state if the acts involved would have constituted a crime
under the laws of this State. The record of conviction or a copy of the
record, certified by the clerk of court or the judge in whose court the
conviction is had, is conclusive evidence of the conviction and
`conviction' shall include a plea of guilty or a plea of nolo contendere;
(8) performance of a fraudulent act while holding a license or
permit under this article; or
(9) conduct reflecting adversely upon the license or permit
holder's fitness to engage in the practice of public accountancy.
(B) In lieu of or in addition to a remedy specifically provided in
subsection (A), the board may require one or more of the these
requirements of a license or permit holder:
(1) a quality review conducted in a fashion as the board may
require; or
(2) satisfactory completion of continuing professional
education programs as the board may specify.
A `quality review' means a study, appraisal, or review of one or
more aspects of the professional work of a person or firm in the
practice of public accountancy by a person or persons who hold
certificates or licenses and who are not affiliated with the person or
firm being reviewed.
(C) In a proceeding in which a remedy imposed by subsections
(A) and (B) is imposed, the board also may require the respondent
license or permit holder to pay the costs of the proceeding.
Section 40-2-580. The board may initiate proceedings under this
article on its own motion or on the complaint of a person, and the
procedures provided in Article 1 for these proceedings are applicable
and binding in procedures under this article.
Section 40-2-590. A person who violates a provision of this
article is guilty of a misdemeanor and, upon conviction, must be fined
not less than fifty dollars or more than two hundred dollars or
imprisoned not less than twenty days or more than sixty days. Each
violation constitutes a separate offense and each day's violation
constitutes a separate offense.
Section 40-2-600. Nothing contained in this article may be
construed to prohibit the formation of partnerships by and between
public accountants and accounting practitioners if all members of the
partnerships and all resident managers of offices of the partnerships
are licensed under this chapter as public accountants or accounting
practitioners and if the partnerships apply for an annual permit in the
manner prescribed in this article for other partnerships."
SECTION 2. Title 40, Chapter 1 of the 1976 Code, as amended, is
further amended to read:
"CHAPTER 1.
Accountants
Article 1.
Regulations of Certified Public Accountants
and Public Accountants
Section 40-1-10. Any person shall be deemed to be practicing
public accounting as a certified public accountant within the meaning
of this article who shall display a sign or in any way hold himself out
as a certified public accountant.
Section 40-1-20. Any person shall be deemed to be practicing
public accounting as a public accountant within the meaning of this
article who shall display a sign or in any way hold himself out as a
public accountant.
Section 40-1-30. It shall be unlawful for any person to hold
himself out as a certified public accountant or to use the title `certified
public accountant' or the designation `CPA' in this State unless such
person shall have obtained a certificate of registration from the South
Carolina Board of Accountancy as provided in this article. It shall be
unlawful for any partnership to hold itself out as a partnership of
certified public accountants unless it is registered with the South
Carolina Board of Accountancy and meets the following
requirements:
(a) At least one general partner must be a certified public
accountant of this State in good standing.
(b) Each partner personally engaged within this State in the
practice of public accounting as a member thereof must be a certified
public accountant of this State in good standing.
(c) Each partner must be a certified public accountant in good
standing of some state of the United States.
(d) Each resident manager in charge of an office of the firm in
this State must be a certified public accountant of this State in good
standing. Application for such registration must be made upon the
affidavit of a general partner of such partnership who is a certified
public accountant of this State in good standing. The Board shall in
each case determine whether the applicant is eligible for registration.
A partnership which is so registered may use the words `certified
public accountants' or the designation `CPA's' in connection with its
partnership name. Notification shall be given the Board, within one
month, after the admission to or withdrawal of a partner from any
partnership so registered.
No person shall assume or use the title or designation `certified
public accountant' in conjunction with names indicating or implying
that there is a partnership or in conjunction with the designation `and
Company' or `and Co.' or a similar designation if, in any such case,
there is in fact no bona fide partnership; provided, that a sole
proprietor or partnership lawfully using such title or designation in
conjunction with such names or designation on July 1, 1965, may
continue to do so if he or it otherwise complies with the provisions of
this article.
Section 40-1-40. It shall be unlawful for any person to hold
himself out as a public accountant or to use the title `public
accountant' or the designation `PA' in this State unless such person
shall have obtained a license as a public accountant from the South
Carolina Board of Accountancy as provided in this article. It shall be
unlawful for any partnership to hold itself out as a partnership of
public accountants unless it is registered as such by the South
Carolina Board of Accountancy and meets the following
requirements:
(a) At least one general partner must be a certified public
accountant or a public accountant of this State in good standing.
(b) Each partner personally engaged within this State in the
practice of public accounting as a member thereof must be a certified
public accountant or a public accountant of this State in good
standing.
(c) Each partner must be a certified public accountant or a
registered or licensed public accountant in good standing of some
state of the United States.
(d) Each resident manager in charge of an office of the firm in
this State must be a certified public accountant or a public accountant
of this State in good standing.
Application for such registration must be made upon the affidavit
of a general partner of such partnership who is a public accountant of
this State in good standing. The Board shall in each case determine
whether the applicant is eligible for such license. A partnership
which is so registered may use the words `public accountants' or the
designation `PA's' in connection with its partnership name.
Notification shall be given the Board, within one month, after the
admission to or withdrawal of a partner from any partnership so
registered.
Section 40-1-50.(a) No person shall sign or affix his name or any
trade or assumed name used by him in his profession or business, or a
partnership name, with any wording indicating that he is a certified
public accountant or public accountant, or that such partnership is
composed of certified public accountants or public accountants, or
with any wording indicating that he has, or such partnership is
composed of persons having expert knowledge in accounting or
auditing, to any opinion or certificate attesting in any way to the
reliability of any representation in regard to any person or
organization embracing (1) financial information or (2) facts
respecting compliance with conditions established by law or contract
including, but not limited to, statutes, ordinances, regulations, grants,
loans, and appropriations, unless he or it holds a certificate of
registration or license issued pursuant to this article. The provisions of
this subsection do not prohibit any officer, employee, partner, or
principal of any organization from affixing his signature to any
statement or report in reference to the financial affairs of the
organization with any wording designating the position, title, or office
which he holds in the organization, nor do the provisions of this
subsection prohibit any act of a public official or public employee in
the performance of his duties as such.
(b) No person, not registered or licensed under this article, shall
sign or affix the name of a professional association with any wording
indicating that it is a professional association performing services as
accountants or auditors or composed of accountants or auditors or
persons having expert knowledge in accounting or auditing, to any
opinion or certificate attesting in any way to the existence or
nonexistence of facts in regard to any person or organization
including, but not limited to, facts relating to financial position and
results of operations and facts relating to compliance with any
contract, law, ordinance, or regulation.
(c) No person, partnership, or professional association not
registered or licensed under this article shall permit his or its name to
be associated with statements purporting to show financial position or
results of operations in regard to any person or organization in such
manner as to imply that he has, or it is composed of, persons having
expert knowledge in accounting or auditing, or in such manner as to
state or imply that he or it is licensed under Article 3 of this chapter
unless he or it declaims an opinion on the statements and in
connection therewith indicates clearly that the statements were not
audited by him or it and that he or it is prohibited by law from
expressing an opinion on the statements. The provisions of this
subsection do not require any officer, employee, partner, or principal
of any organization affixing his signature to any statement or report in
reference to the financial affairs of such organization with any
wording designating the position, title, or office which he holds in the
organization to state such a disclaimer, nor do the provisions of this
subsection apply to any act of a public official or public employee in
the performance of his duties as such.
(d) No person or partnership not registered or licensed under this
article, and no professional association, shall hold himself or itself out
to the public as an `accountant' or `auditor' by use of a title composed
of or indicating either or both by such words on any sign, card,
letterhead, or in any advertisement or directory, without plainly
indicating thereon or therein that the person, partnership, or
professional association does not hold a registration or license. This
subsection does not prohibit any officer, employee, partner, or
principal of any organization from describing himself by the position,
title, or office he holds in such organization, nor does this subsection
prohibit any act of a public official or public employee in the
performance of his duties as such.
(e) No person, partnership, or professional association shall assume
or use the title or designation `certified accountant', `chartered
accountant', `enrolled accountant', `licensed accountant', `registered
accountant', or any other title or designation likely to be confused
with `certified public accountant' or `public accountant', or any of the
abbreviations `CA', `AP', `EA', `RA', or `LA', or similar abbreviations
likely to be confused with `CPA' or `PA'. Any person or partnership
registered or licensed under this article as a certified public
accountant or public accountant or as a firm of certified public
accountants or public accountants may hold himself out to the public
as an `accountant' or `auditor' or, as the case may be, as a firm of
accountants or auditors.
Section 40-1-60. Professional associations may be licensed and
operate as certified public accountants, public accountants, and
accounting practitioners and shall be governed by the provisions of
this chapter and any provision applying to partnerships in such
chapter requiring certain qualifications or requirements of a partner or
partners shall apply to a member or members of the professional
association. All persons licensed as certified public accountants,
public accountants, and accounting practitioners may practice and
operate in any form or manner provided by law. For purposes of this
chapter, `professional association' means professional association or
professional corporation.
Section 40-1-70. There is hereby created a board which shall carry
out the purposes and enforce the provisions of this chapter and shall
be styled the South Carolina Board of Accountancy, the members of
which shall be appointed by the Governor.
Section 40-1-80. The board consists of nine members: five
licensed certified public accountants, two licensed public accountants
or licensed accounting practitioners, and two public members who are
not engaged in the practice of public accounting, have no financial
interest in the profession of public accounting, and have no
immediate family member in the profession of public accounting. As
used in this section, `immediate family member' shall be defined as in
Section 8-13-100(18). Members must be appointed by the Governor
for terms of three years and until their successors are appointed and
qualify. Vacancies may be filled by the Governor for unexpired
terms. The Governor shall remove a member of the board for neglect
of duty or other just cause.
Section 40-1-100. A majority of the membership of the Board
shall constitute a quorum and action shall be by majority vote. The
Board may provide for proxy voting by absent members.
Section 40-1-110. The members of the Board shall qualify by
taking the oath of office before a notary public or other officer
empowered to administer oaths and a record thereof shall be filed in
the office of the Secretary of State. At the first meeting of the Board
after each annual appointment the Board shall elect a chairman, a
vice-chairman and a secretary-treasurer. The secretary-treasurer shall
give such bond as the Board shall from time to time direct.
Section 40-1-120. Members may receive a per diem and expenses
for each day actually engaged in the duties of his office and mileage
at the rate provided by law for State employees for all distances
necessarily traveled in going to and from the meetings of the Board.
Such expenses shall be paid from fees and licenses received by the
Board under the provisions of this article and no part of the salary or
other expenses of the Board shall ever be paid out of the State
Treasury.
Section 40-1-130. Regular meetings for purpose of examinations
shall be held at least once a year at such place and time as the
chairman of the Board shall deem most convenient for applicants.
Due notice of such meetings for examinations shall be given by
publication in such papers as may be selected by the chairman. The
chairman may call from time to time such other meetings as are
necessary to the business of the Board and shall call a meeting at any
time upon the written request of three members of the Board.
Section 40-1-140. The board may prescribe rules, regulations and
bylaws, in harmony with the provisions of this chapter, for its own
proceedings and government and for the examination of applicants for
the practice of accounting. The board may promulgate and amend
rules of professional conduct appropriate to establish and maintain a
high standard of integrity and dignity in the profession of public
accountancy. Within sixty days after the promulgation of any such
rule or amendment, the board shall mail copies of the rule or
amendment to each holder of a license issued under this article, with a
notice advising him of the effective date of the rule or amendment.
Failure to mail such rule, amendment or notice to all license holders
shall not affect the validity of any such rule or amendment. The
board, or any member thereof, may issue subpoenas to compel the
attendance of witnesses and the production of documents, and may
administer oaths, take testimony, hear proofs and receive exhibits in
evidence for all purposes required in the discharge of its duties. In
case of disobedience to a subpoena the board may invoke the aid of
an administrative law judge as provided under Article 5 of Chapter 23
of Title 1 in requiring the attendance and testimony of witnesses and
the production of documentary evidence and shall adopt a seal to be
affixed to all its official documents.
Section 40-1-150. The Board shall collect fees which must be
deposited in the general fund of the State, in an amount to at least
equal the amount appropriated annually in the general appropriations
act for the Board of Accountancy.
Section 40-1-160. The Board shall make an annual report as
provided by law as soon as practicable after the close of its fiscal year
which shall end on June thirtieth.
Section 40-1-170. Every person, before beginning to practice as a
certified public accountant in this State, shall pass an examination
before the Board of Accountancy in accounting and auditing and such
related subjects as the Board shall determine to be appropriate.
Section 40-1-180. (A) Each applicant making application for
examination shall submit evidence satisfactory to the board that he:
(1) is at least eighteen years of age;
(2) does not have a history of dishonest or felonious acts;
(3) has the following educational background:
(a) Before July 1, 1997, each applicant must have a
baccalaureate degree from a college or university recognized by the
board including a minimum of twenty-four hours or the equivalent in
accounting hours.
(b) After June 30, 1997, each applicant must have at least
one hundred fifty semester hours of college education including a
baccalaureate or higher degree conferred by a college or university
acceptable to the board, the total educational program to include an
accounting concentration or equivalent as determined by board rule to
be appropriate.
(B) The educational requirements are waived for a candidate who
is a South Carolina public accountant licensed and in good standing
under this article or who, on July 1, 1965, was practicing as a public
accountant or who then was employed as a staff accountant in this
State by anyone practicing public accounting.
Section 40-1-190. The examination described in Section
40-1-170 must be held by the board at least once each year.
The board shall advertise the dates of the examinations at least
eight weeks prior to the date set in a newspaper so as to provide
adequate statewide notice. Beginning in 1986 the dates set in a
newspaper must be at least by September first for the November
examination and by March first for the May examination.
The board may make use of all or any part of the uniform certified
public accountants' examination or advisory grading service as it
considers appropriate to assist it in performing its duties.
A candidate for the certificate of certified public accountant who
has successfully completed the examination required under Section
40-1-170 shall have no status as a certified public accountant, unless
and until he has the requisite experience and has received his
certificate as a certified public accountant. The experience required is
either:
(a) two years of accounting experience in public,
governmental, or private employment under the direct supervision
and review of a certified public accountant licensed to practice
accounting in some state or territory of the United States or the
District of Columbia;
(b) five years experience teaching accounting in a college or
university recognized by the board; or
(c) any combination of such experience determined by the
board to be substantially equivalent to the foregoing. The experience
must include experience satisfactory to the board, in applying
generally accepted auditing standards to financial statements prepared
in accordance with generally accepted accounting principles.
The board may by regulation provide for granting a credit to a
candidate for satisfactory completion of a written examination in any
one or more of the subjects provided in Section 40-1-170 given by the
licensing authority in any other state of the United States if at the time
he took the examination he was not a resident of this State. The
regulation must include requirements as the board determines
appropriate in order that any examination approved as a basis for any
such credit is, in the judgment of the board, at least as thorough as
that included in the most recent examination given by the board at the
time of the granting of credit.
The board may by regulation prescribe the terms and conditions
under which a candidate who passes the examination in one or more
of the subjects provided by Section 40-1-170 may be reexamined in
only the remaining subjects, with credit for the subjects previously
passed. It may also provide by regulation for a reasonable waiting
period for a candidate's reexamination in a subject he has failed.
The board shall charge each candidate a fee, to be determined by
the board, not in excess of two hundred dollars for the initial
examination provided for in Section 40-1-170.
Fees for reexamination provided by this section are charged by the
board in amounts determined by it, but not in excess of eighty dollars
for each subject in which the candidate is reexamined.
An application for examination or reexamination as prescribed by
the board must be submitted and the applicable fee paid at least five
weeks prior to the date of the examination. Beginning in 1986, the
application must be submitted and the applicable fee paid by
September fifteenth for the November examination and by March
fifteenth for the May examination.
Section 40-1-200. Certificates of registration as a certified public
accountant issued by the Board must be signed by the chairman and
secretary-treasurer and the Board shall collect from the recipient a fee
to be fixed by the Board.
Any person who holds a certificate of registration as a certified
public accountant under this article, which is in full force and effect,
may be styled and known as a `certified public accountant' and may
also use the designation `CPA'. Any certified public accountant may
also be known as a `public accountant'. The Board shall maintain a
list of certified public accountants.
Any person who holds a license as a public accountant under this
article, which is in full force and effect, may be styled and known as a
`public accountant' and may also use the designation `PA'. The Board
shall maintain a list of public accountants.
Section 40-1-210. The Board shall keep a register in which shall
be recorded the names of all persons examined and whether or not
such applicants successfully passed the examination or any part
thereof.
Section 40-1-220. Before any certificate is issued it shall be
numbered and recorded in a book kept by the secretary-treasurer of
the Board. In all legal proceedings the record so kept, or a certified
copy thereof, shall be evidence of the facts therein stated.
Section 40-1-230. Persons who, on July 1, 1965, held certified
public accountant certificates issued under the laws of this State shall
not be required to obtain additional certificates under this article, but
shall otherwise be subject to all provisions of this article, and such
certificates shall, for all purposes, be considered certificates issued
under this article and subject to the provisions hereof.
Section 40-1-240. (A) The board, upon application in writing,
may waive the examination referred to in Section 40-1-170 and issue
a certificate to a person who is the holder of a certificate, or the
equivalent, as a certified public accountant issued under the laws of
any state or territory of the United States or the District of Columbia
and:
(1) who has the qualifications required by this article and the
regulations of the board; or
(2) when, in the judgment of the board, the requirements for
issuing or granting certificates in the other state, territory, or the
District of Columbia are substantially equivalent to the requirements
established by this article and the regulations of the board, and
provided further, that the other state or political subdivision of the
United States grants the same privileges to holders of certificates
issued by this State.
(B) The board, upon application in writing, may waive the
examination referred to in Section 40-1-170 and issue a certificate to
a holder of a foreign designation, granted in a foreign country
entitling the holder thereof to engage in the practice of public
accountancy provided that:
(1) the foreign authority which granted the designation makes
similar provisions to allow a person who holds a valid certificate
issued by this State to obtain such foreign authority's comparable
designation;
(2) the foreign designation:
(a) was duly issued by a foreign authority that regulates the
practice of public accountancy and the foreign designation has not
expired or been revoked or suspended;
(b) entitles the holder to issue reports upon financial
statements; and
(c) was issued upon the basis of educational, examination,
and experience requirements by the foreign authority or by law; and
(3) the applicant:
(a) received the designation, based on educational and
examination standards substantially equivalent to those in effect in
this State at the time the foreign designation was granted;
(b) completed an experience requirement substantially
equivalent to the requirement set out in Section 40-1-190 and
regulations of the board; and
(c) passed a uniform qualifying examination in national
standards acceptable to the board.
Section 40-1-250. Any person who holds a valid and unrevoked
certificate as a certified public accountant issued under the authority
of any state of the United States or who lawfully practices as a
registered and licensed public accountant in any state of the United
States, and who resides without the State of South Carolina, may hold
himself out within South Carolina as a certified public accountant or
as a public accountant, as the case may be, if he registers with the
Board and complies with its regulations regarding such registration.
A fee to be fixed by the Board must be charged for such registration
or reregistration. A partnership, each partner of which is a certified
public accountant in good standing of some state of the United States
or, as the case may be, a registered or licensed public accountant
lawfully practicing in some state of the United States, may be
considered one person for the purposes of this section.
Section 40-1-260. [Repealed]
Section 40-1-270. Every registered certified public accountant,
public accountant, or accounting practitioner who desires to continue
to practice as such in this State must meet the following requirements
on or before the dates indicated:
(1) pay to the secretary of the board annually on or before July
first a license fee, to be fixed by the board; and
(2) annually, on or before the last day of February of each year,
file with the board, on a form or forms prescribed by the board for
this purpose, a certificate of compliance with the continuing
education requirements necessary for license renewals as required by
Section 40-1-380.
The board, by regulation, may provide a penalty not to exceed five
hundred dollars for each violation for failure to comply with the
provisions of either items (1) or (2) above.
Upon payment of the fee, any penalty required, and filing of the
certificate in proper form, the secretary of the board shall issue a
license entitling the applicant to practice in this State until July first of
the following year.
The board may, in its discretion, reduce or waive the above
requirements in cases of illness, mental or physical incapacity,
retirement from practice, and similar situations.
Section 40-1-280. In case of default in such payment by any
person, his certificate of registration as a certified public accountant
or license as a public accountant shall be revoked by the Board upon
the giving of twenty days' notice in writing by the secretary-treasurer
of the time and place of considering such revocation. The deposit of
such notice in the United States post office addressed to such person
at his last known place of residence or business, the registered
postage prepaid thereon, shall be presumed to be due and legal
service of such notice. No certificate of registration as a certified
public accountant or license as a public accountant shall be revoked
for nonpayment if the person notified shall pay such penalty as may
be imposed by the Board, not exceeding seventy-five dollars. Any
person whose certificate of registration as a certified public
accountant or license as a public accountant has been revoked for
failure to pay his renewal fee may apply to have it regranted to him
upon payment to the Board of any penalties established and all
renewal fees that should have been paid had the certificate of
registration as a certified public accountant or license as a public
accountant not been revoked.
Section 40-1-290. (A) After notice and hearing pursuant to
Section 40-1-310, the board may revoke any certificate as a certified
public accountant or license as a public accountant issued under the
provisions of this article; suspend any such certificate or license for a
period of not more than five years; reprimand, censure, or limit the
scope of practice of any certificate holder or licensee; impose an
administrative fine not exceeding $1,000; or place any certificate
holder or licensee on probation, all with or without terms, conditions,
and limitations, for any one or more of the following reasons:
(1) fraud or deceit in obtaining a certificate or license;
(2) cancellation, revocation, suspension, or refusal to renew
authority to engage in the practice of public accountancy in any other
state, territory of the United States, or the District of Columbia, for
any cause;
(3) revocation or suspension of the right to practice before any
state or federal agency;
(4) dishonesty, fraud, or gross negligence in the practice of
public accountancy or in the filing or failure to file the certificate
holder's or licensee's own income tax returns;
(5) violation of any provision of this article or any rule or
regulation promulgated by the board under the authority granted by
this article;
(6) violation of any rule of professional conduct promulgated
by the board under the authority granted by this article;
(7) conviction of a felony, or any crime an element of which is
dishonesty or fraud, under the laws of the United States, of this State,
or any other state if the acts involved would have constituted a crime
under the laws of this State. The record of conviction, or a copy
thereof, certified by the clerk of court or the judge in whose court the
conviction is had, shall be conclusive evidence thereof; and the word
`conviction' shall include a plea of guilty or a plea of nolo contendere;
(8) performance of any fraudulent act while holding a
certificate or license under this article; or
(9) any conduct reflecting adversely upon the certificate
holder's or licensee's fitness to engage in the practice of public
accountancy.
(B) In lieu of or in addition to any remedy specifically provided in
(A) above, the board may require one or more of the following
requirements of a certificate holder or licensee:
(1) a quality review conducted in such fashion as the board
may require; or
(2) satisfactory completion of such continuing professional
education programs as the board may specify.
A `quality review' means a study, appraisal, or review of one or
more aspects of the professional work of a person or firm in the
practice of public accountancy by a person or persons who hold
certificates or licenses and who are not affiliated with the person or
firm being reviewed.
(C) In any proceeding in which a remedy imposed by subsections
(A) and (B) of this section is imposed, the board may also require the
respondent certificate holder or licensee to pay the costs of the
proceeding.
Section 40-1-300. After notice and hearing, as provided in
Section 40-1-310, the Board shall revoke the registration or license of
a partnership if at any time it does not have all the qualifications
prescribed by Sections 40-1-30 or 40-1-40, as the case may be, and
may revoke or suspend the registration or license of a partnership for
any of the causes enumerated in Section 40-1-290 or for either of the
following causes:
(a) The revocation or suspension of the certificate of
registration or the revocation or suspension or refusal to renew the
license to practice of any partner; or
(b) The cancellation, revocation, suspension or refusal to renew
the authority of the partnership or any partner thereof to practice
public accounting in any other state for any cause other than failure to
pay an annual registration fee in such other state.
Section 40-1-310. (a) The board may initiate proceedings under
this article either on its own motion or on the complaint of any
person.
(b) A written notice, stating the nature of the charge against the
accused and the time and place of the hearing before the board on
such charge, shall be served on the accused not less than thirty days
prior to the date of the hearing, either personally or by mailing a copy
thereof by registered mail to the address of the accused last known to
the board.
(c) If, after having been served with the notice of hearing as
provided for herein, the accused fails to appear at the hearing and
defend, the board may proceed to hear evidence against him and may
enter such order as shall be justified by the evidence, which order
shall be final unless the accused petitions for a review thereof as
provided herein; provided, however, that within thirty days from the
date of any order, upon showing of good cause for failing to appear
and defend, the board may reopen the proceedings and may permit
the accused to submit evidence in his behalf.
(d) At any hearing the accused may appear in person and by
counsel produce evidence and witnesses on his own behalf,
cross-examine witnesses, and examine such evidence as may be
produced against him. The accused shall be entitled, on application to
the board, to the issuance of subpoenas to compel the attendance of
witnesses on his behalf.
(e) The board shall not be bound by technical rules of evidence.
(f) A record of the hearings shall be kept and filed with the
board.
(g) At all hearings the Attorney General of this State, or one of
his assistants designated by him, or such other legal counsel as may
be employed, shall appear and represent the board.
(h) The decision of the board shall be by majority vote thereof,
except a decision to revoke the permit must be by unanimous vote of
those voting.
(i) Anyone adversely affected by any order of the board may
obtain a review thereof by filing a written petition for review with an
administrative law judge as provided under Article 5 of Chapter 23 of
Title 1 within thirty days after the entry of the order. The petition
shall state the grounds upon which the review is asked. A copy of
such petition shall be forthwith served upon any member of the board
and thereupon the board shall certify and file with the administrative
law judge as provided under Article 5 of Chapter 23 of Title 1 a copy
of the record upon which the order complained of was entered. The
administrative law judge as provided under Article 5 of Chapter 23 of
Title 1 may, in its discretion, stay the effect of the board's order
pending its determination of the case.
Section 40-1-320. Upon application in writing and after hearing
pursuant to notice, the Board may issue a new certificate to a certified
public accountant whose certificate shall have been revoked, or may
permit the reregistration of anyone whose registration has been
revoked, or may reissue or modify the suspension of any license to
practice public accounting which has been revoked or suspended.
Section 40-1-330. Each office established or maintained in this
State for the practice of public accounting by a certified public
accountant or partnership or professional association of certified
public accountants or public accountant or partnership or professional
association of public accountants shall be registered under this article
with the Board, but no fee shall be charged for such registration. Each
such office shall be under the direct supervision of a resident manager
who may be either a partner or a staff employee holding a license
under this article which is in full force and effect. The Board shall be
advised of change of management of such offices in each location.
Section 40-1-340. Any person who shall violate any of the
provisions of this article shall be deemed guilty of a misdemeanor
and, upon conviction, shall be punished by a fine of not less than fifty
dollars and not exceeding two hundred dollars or by imprisonment for
not less than twenty days and not exceeding sixty days. Each
violation shall constitute a separate offense and each day's violation
shall constitute a separate offense.
Section 40-1-350. As cumulative of any other remedy or criminal
prosecution, whenever it shall appear to the board that any person
violated any of the provisions of this article, or the lawful rules,
regulations or orders of the board, or any of the laws of this State
relating to accountancy, the board may file a suit in equity in its own
name, or in the name of the state, on its own relation, and by its
counsel, with an administrative law judge as provided under Article 5
of Chapter 23 of Title 1 alleging the facts and praying for a temporary
restraining order or permanent injunction against such person,
restraining him from violating such law, order, rule or regulation, or
commanding him to obey such law, order, rule or regulation.
Upon proper application, and showing that such person is not
registered, or that a renewal certificate has not been applied for, or
that registration has been denied, revoked or suspended, or that the
law, order, rule or regulation has been or is about to be violated or
disobeyed, which showing may be made by affidavit, the
administrative law judge as provided under Article 5 of Chapter 23 of
Title 1 shall issue a temporary restraining order or injunction, and,
upon final hearing, shall grant and issue an injunction, including
mandatory injunction, upon finding the truth and sufficiency of the
allegations of the petition. An administrative law judge, as provided
under Article 5 of Chapter 23 of Title 1, may enforce the injunction
by punishment for contempt, and by such other process as is
permitted to circuit courts, and shall make such other orders as its
discretion and the rules shall require. Such injunction may be limited
in time, perpetual or conditional, as may be necessary and proper to
the enforcement of this article, or the lawful rules, regulations or
orders of the board, or the law of this State relating to accountancy.
Section 40-1-360. All statements, records, schedules, working
papers, and memoranda made by a certified public accountant or
public accountant incident to or in the course of professional service
to clients, except reports submitted to a client, are the property of the
accountant, in the absence of an express agreement between the
accountant and the client to the contrary.
Section 40-1-370. Whenever any statute or rule or regulation of a
State agency requires that any reports, financial statements, audits,
and other documents for any department, division, board, commission
or agency of this State be prepared by certified public accountants,
such requirement shall be construed to mean licensed public
accountants or certified public accountants.
Section 40-1-380. The Board shall adopt regulations
implementing the requirements and reporting for continuing
education which must be met by certified public accountants, public
accountants and accounting practitioners. The Board shall require no
less than sixty hours of continuing educational activities in any two
year period. The Board shall require compliance with the regulations
as a prerequisite to the issuance of a current license to practice as a
certified public accountant, public accountant, or accounting
practitioner. The requirements may be waived by the Board in
individual cases for good cause.
In establishing such regulations, the Board shall recognize the
following as meeting the continuing educational requirements:
(a) Professional development programs of national and state
accounting organizations. Only class hours or the equivalent, and not
students hours devoted to preparation, are counted.
(b) Technical sessions at meetings of national and state
accounting organizations and their chapters.
(c) Course offered by colleges, universities, technical education
centers and other appropriate educational institutions, including credit
and noncredit courses. Each semester-hour credit shall equal fifteen
hours toward the requirement; each quarter-hour credit shall equal ten
hours. In noncredit courses, each classroom hour shall equal one
qualifying hour.
(d) Any other activities, methods, procedures, devices and
programs which, in the opinion of the Board, contribute directly to
the professional competence of the licensee.
Article 3
Regulation of Accounting Practitioners
Section 40-1-510. A person, firm, or professional association, not
exempted under Section 40-1-530 of this article, is considered to be
engaged in the practice of offering to render and rendering to the
public the services which are regulated by this article:
(a) who offers to prospective clients in South Carolina to
perform for compensation, services of one or more of the following
types:
(1) the development, recording, analysis, or presentation of
financial information including, but not limited to, the preparation of
financial statements; or
(2) advice or assistance in regard to accounting controls,
systems, and procedures; and
(b) who in any manner holds himself or itself out to the public in
South Carolina as skilled in one or more of the types of services
described in subsection (a) above.
Section 40-1-520. (a) No professional association, person, or
partnership, other than a person or partnership holding a permit to
practice issued pursuant to this article, may engage in the practice
defined in Section 40-1-510 unless he or it plainly indicates on all
signs, cards, letterheads, advertisements, and directories used to
disclose his or its practice or business that he or it does not hold a
license to practice under this article.
(b) No professional association, person, or partnership, other than a
person or partnership holding a permit to practice issued pursuant to
this article, shall assume or use the title or designation `Accounting
Practitioner' or any other title, designation, words, letters,
abbreviation, sign, card, or device tending to indicate that such
person is an accounting practitioner or that such partnership is
composed of accounting practitioners or that such person, partnership,
or professional association is authorized under this article to engage
in the practice defined under Section 40-1-510.
Section 40-1-530. Nothing contained in this article:
(a) applies to any certified public accountant or public
accountant who holds a license to practice as such issued under the
law of South Carolina, nor does any provision of this article apply to
any partnership of certified public accountants or public accountants
which holds a permit to practice such as issued under South Carolina
authority.
(b) applies to any person, firm, or professional association which
plainly indicates on all signs, cards, letterheads, advertisements, and
directories, used to disclose his or its practice or business that he or it
does not hold a license to practice under this article.
(c) prohibits any person from serving as an employee of any
person, partnership, or professional association provided that the
employee does not engage in the practice defined in Section 40-1-510
on his own account.
(d) prohibits any person, partnership, or professional association
from offering to prepare, or from preparing, any tax return with
respect to any tax imposed by any governmental authority, whether
federal, state, or local, nor does this article prevent any person from
advising clients in connection with tax matters.
(e) prohibits any person, partnership, or professional association
holding a license or permit issued by another state, territory, or the
District of Columbia, which license or permit authorizes the person,
partnership, or professional association to engage in such other
jurisdiction in the type of practice described in Section 40-1-510,
from temporarily practicing in this State as an incident to his or its
regular practice outside of this State if such temporary practice is
conducted in conformity with the rules of ethical conduct
promulgated by the Board.
(f) applies to the affixing of the signature or name of any officer,
employee, partner, or principal of any organization to any statement
or report in reference to the financial affairs of such organization with
any wording designating the position, title, or office which he holds
in the organization, nor do the provisions of this article apply to any
act of a public official or public employee in the performance of his
duties as such.
(g) applies to the offering or rendering of data processing
services by mechanical or electronic means, nor to the offering or
rendering of services in connection with the operation, sale, lease,
rental, or installation of mechanical or electronic bookkeeping or data
processing equipment, nor to the sale, lease, rental, or installation of
such equipment.
Section 40-1-540. The South Carolina Board of Accountancy
shall examine, license and discipline accounting practitioners. The
Board may charge a reasonable fee for examinations, not exceeding
the fee charged for certified public accountants' examinations.
Section 40-1-550. In order to be eligible for licensing under this
article as an accounting practitioner, an applicant shall not hold any
other license granted under this chapter and must:
(a) not have any history of dishonest or felonious acts;
(b) be a resident of this State or have a place of business herein,
or, as an employee, be regularly employed herein;
(c) be at least eighteen years of age; and
(d) meet the requirements in one or more of subitem (1), (2), or
(3) specified below:
(1) pass a written examination approved by the Board, which
is designed to test the applicant's basic knowledge of the subjects
described in subitems (1) and (2) of Section 40-1-510 (a), and which
may consist of two parts of the examination administered to certified
public accountant applicants or such other examination as the Board
may prescribe.
(2) have a bachelor's degree with a major in accounting as
determined by the Board from a four-year college or university
accredited by the Southern Association of Colleges and Schools, or
from a college or university having equivalent standards as
determined by the Board.
(3) be licensed and hold a current annual permit to practice in
this State as a certified public accountant or public accountant if such
person surrenders his license and permit to practice as a certified
public accountant or public accountant upon being licensed as an
accounting practitioner.
Section 40-1-560. (a) Licenses shall be issued by the Board to
persons satisfying the requirements of Section 40-1-550 upon the
payment of a license fee in an amount to be determined by the Board.
(b) Permits to engage in the practice defined in Section 40-1-510
shall be issued by the Board for annual periods expiring on the last
day of June to persons and partnerships as follows:
(1) Persons holding licenses issued pursuant to subsection (1) of
Section 40-1-510, upon payment of a permit fee in an amount to be
determined by the Board. In its discretion the Board may reduce or
waive the fee in case of illness, mental or physical incapacity,
retirement from practice, or for similar situations. Failure of a licensee
to pay the fee for a permit to practice within (a) three years from the
expiration date of the permit to practice last obtained or used, or (b)
three years from the date upon which the licensee was granted his
license if no permit was ever issued to him, shall deprive him of the
right to the permit unless the Board in its discretion determines the
failure to have been caused by excusable neglect. The decision of the
Board in these cases is final. In these cases a renewal fee for the
issuance of the original license, as the case may be, shall be in an
amount as the Board determines.
(2) Partnerships, without payment of any permit fee, which meet
the following standards:
(A) At least one general partner must be an accounting
practitioner of this State in good standing.
(B) Each partner personally engaged within this State in the
practice defined in Section 40-1-510 must be an accounting
practitioner of this State in good standing.
(C) Each partner must be lawfully engaged in the practice
defined in Section 40-1-510 in some state of the United States.
(D) Each resident manager in charge of an office must be an
accounting practitioner of this State in good standing.
(3) File with the secretary of the Board on a form prescribed by
the Board for this purpose a certificate of compliance with the
continuing education requirements necessary for license renewal as
required by Section 40-1-380. In case of default in the payment of
the license fee by any person, the provisions of Section 40-1-280
applicable to certified public accountants and public accountants
apply in all respects to accounting practitioners.
Section 40-1-570. (A) After notice and hearing pursuant to
Section 40-1-310 the board may revoke any license or permit as
accounting practitioner issued under the provisions of this article;
suspend any such license or permit for a period of not more than five
years; reprimand, censure, or limit the scope of practice of any license
or permit holder; impose an administrative fine not exceeding $1,000;
or, place any license or permit holder on probation, all with or
without terms, conditions, and limitation, for any one or more of the
following reasons:
(1) fraud or deceit in obtaining a license or permit;
(2) cancellation, revocation, suspension, or refusal to renew
authority to engage in the practice of public accountancy in any other
state, territory of the United States, or the District of Columbia for
any cause;
(3) revocation or suspension of the right to practice before any
state or federal agency;
(4) dishonesty, fraud, or gross negligence in the practice of
public accounting or in filing or failure to file the license or permit
holder's own income tax return;
(5) violation of any provision of Article 1 or Article 3 of this
chapter or any rule or regulation promulgated by the board under the
authority granted by this chapter;
(6) violation of any rule of professional conduct promulgated by
the board under the authority granted by this chapter;
(7) conviction of a felony, or any crime an element of which is
dishonesty or fraud, under the laws of the United States, of this State,
or any other state if the acts involved would have constituted a crime
under the laws of this State. The record of conviction, or a copy
thereof, certified by the clerk of court or the judge in whose court the
conviction is had, shall be conclusive evidence thereof and the word
`conviction' shall include a plea of guilty or a plea of nolo contendere;
(8) performance of any fraudulent act while holding a license or
permit under this article; or
(9) any conduct reflecting adversely upon the license or permit
holder's fitness to engage in the practice of public accountancy.
(B) In lieu of or in addition to any remedy specifically provided in
(A) above, the board may require one or more of the following
requirements of a license or permit holder:
(1) a quality review conducted in such fashion as the board may
require; or
(2) satisfactory completion of such continuing professional
education programs as the board may specify.
A `quality review' means a study, appraisal, or review of one or
more aspects of the professional work of a person or firm in the
practice of public accountancy by a person or persons who hold
certificates or licenses and who are not affiliated with the person or
firm being reviewed.
(C) In any proceeding in which a remedy imposed by subsections
(A) and (B) of this section is imposed, the board may also require the
respondent license or permit holder to pay the costs of the proceeding.
Section 40-1-580. The Board may initiate proceedings under this
article either on its own motion or on the complaint of any person,
and the procedures and rules provided in Article 1 for such
proceedings shall be applicable and binding in procedures under this
article.
Section 40-1-590. Any person who shall violate any of the
provisions of this article shall be deemed guilty of a misdemeanor
and, upon conviction, shall be punished by a fine of not less than fifty
dollars and not more than two hundred dollars or by imprisonment for
not less than twenty days nor more than sixty days. Each violation
shall constitute a separate offense and each day's violation shall
constitute a separate offense.
Section 40-1-600. Nothing contained in this article shall be
construed as to prohibit the formation of partnerships by and between
public accountants and accounting practitioners provided all members
of such partnerships and all resident managers of offices of such
partnerships are licensed under this chapter as public accountants or
accounting practitioners and provided such partnerships apply for an
annual permit in the manner prescribed in this article for other
partnerships.
CHAPTER 1
Professions and Occupations
Article 1
Board Regulation of Professions and Occupations
Section 40-1-10. (A) The right of a person to engage in a lawful
profession, trade, or occupation of choice is clearly protected by both
the Constitution of the United States and the Constitution of the State
of South Carolina. The State cannot abridge this right except as a
reasonable exercise of its police powers when it is clearly found that
abridgement is necessary for the preservation of the health, safety,
and welfare of the public.
(B) No statute or regulation may be imposed under this article
upon a profession or occupation except for the exclusive purpose of
protecting the public interest when the:
(1) unregulated practice of the profession or occupation can
harm or endanger the health, safety, or welfare of the public and the
potential for harm is recognizable and not remote or dependent upon
tenuous argument;
(2) practice of the profession or occupation has inherent
qualities peculiar to it that distinguish it from ordinary work or labor;
(3) practice of the profession or occupation requires specialized
skill or training and the public needs and will benefit by assurances of
initial and continuing professional and occupational ability; and
(4) public is not effectively protected by other means.
(C) If the General Assembly determines that a particular
profession or occupation should be regulated or that a different degree
of regulation should be imposed on the regulated profession or
occupation, it shall consider the following degrees of regulation in the
order provided and only shall regulate the profession or occupation to
the degree necessary to fulfill the need for regulation:
(1) If existing common law and statutory causes of civil action
or criminal prohibitions are not sufficient to eradicate existing harm
or prevent potential harm, the General Assembly first may consider
making statutory changes to provide stricter causes for civil action
and criminal prosecution.
(2) If it is necessary to determine the impact of the operation of
a profession or occupation on the public, the General Assembly may
consider implementing a system of registration.
(3) If the public requires a substantial basis for relying on the
professional services of the practitioner, the General Assembly may
consider implementing a system of certification.
(4) If adequate regulation cannot be achieved by means less
than licensing, the General Assembly may establish licensing
procedures.
(D) In determining the proper degree of regulation, if any, the
General Assembly shall determine:
(1) whether the practitioner, if unregulated, performs a service
to individuals involving a hazard to the public health, safety, or
welfare;
(2) what the opinion of a substantial portion of the people who
do not practice the particular profession, trade, or occupation is on the
need for regulation;
(3) the number of states which have regulatory provisions
similar to those proposed;
(4) whether there is sufficient demand for the service for which
there is no regulated substitute, and this service is required by a
substantial portion of the population;
(5) whether the profession or occupation requires high
standards of public responsibility, character, and performance of each
individual engaged in the profession or occupation, as evidenced by
established and published codes of ethics;
(6) whether the profession or occupation requires such skill
that the public generally is not qualified to select a competent
practitioner without some assurance that the practitioner has met
minimum qualifications;
(7) whether the professional or occupational associations do
not adequately protect the public from incompetent, unscrupulous, or
irresponsible members of the profession or occupation;
(8) whether current laws which pertain to public health, safety,
and welfare generally are ineffective or inadequate;
(9) whether the characteristics of the profession or occupation
make it impractical or impossible to prohibit those practices of the
profession or occupation which are detrimental to the public health,
safety, and welfare;
(10) whether the practitioner performs a service for others which
may have a detrimental effect on third parties relying on the expert
knowledge of the practitioner.
Section 40-1-20. As used in this title unless the context requires a
different meaning:
(1) `Administrator' means the individual to whom the director has
delegated authority to administer the programs of a specific board or
of a professional or occupational group for which the department has
regulatory authority or has delegated authority to administer the
programs of a specific board;
(2) `Authorization to practice' or `Practice authorization' means
the approval to practice the specified profession, engage in the
specified occupation, or use a title protected under this article, which
has been granted by the applicable board. This authorization is
granted in the form of a license, permit, certification, or registration;
(3) `Board' or `Commission' means the group of individuals
charged by law with the responsibility of licensing or otherwise
regulating an occupation or profession within the State. Except as
otherwise indicated, `board' is used in this article to refer to both
boards and commissions;
(4) `Department' means the Department of Labor, Licensing and
Regulation;
(5) `Director' means the Director of the Department of Labor,
Licensing and Regulation or the director's official designee;
(6) `Licensee' means a person granted an authorization to practice
pursuant to this article and refers to a person holding a license,
permit, certification, or registration granted pursuant to this article;
(7) `Licensing act' means the individual statute or regulations, or
both, of each regulated profession or occupation which include, but
are not limited to, board governance, the qualifications and
requirements for authorization to practice, prohibitions, and
disciplinary procedures;
(8) `Person' means an individual, partnership, or corporation;
(9) `Profession' or `occupation' means a profession or occupation
regulated or administered, or both, by the department pursuant to this
article.
Section 40-1-30. It is unlawful for a person to engage in a
profession or occupation regulated by a board or commission
administered by the Department of Labor, Licensing and Regulation
without holding a valid authorization to practice as required by statute
or regulation.
An authorization to practice issued pursuant to this title is valid for
up to two years and is renewable on renewal dates as established by
the Director of Labor, Licensing and Regulation with the consent of
each applicable regulatory board.
Section 40-1-40. (A) The purpose of the Division of Professional
and Occupational Licensing, South Carolina Department of Labor,
Licensing and Regulation, is to protect the public through the
regulation of professional and occupational licensees and the
administration of boards charged with the regulation of professional
and occupational practitioners.
(B) The following boards and the professions and occupations
they license or otherwise regulate must be administered by the
Department of Labor, Licensing and Regulation pursuant to this
article:
Board of Accountancy
Board of Architectural Examiners
Athletic Commission
Auctioneers Commission
Board of Barber Examiners
Board for Barrier-Free Design
Building Code Council
Board of Chiropractic Examiners
Contractors' Licensing Board
Board of Cosmetology
Board of Dentistry
Engineers and Land Surveyors Board
Environmental Certification Board
Board of Registration for Foresters
Board of Funeral Service
Board of Registration for Geologists
Manufactured Housing Board
Board of Medical Examiners
Modular Buildings Board of Appeals
Board of Nursing
Long Term Health Care Administrators Board
Board of Occupational Therapy
Board of Examiners in Opticianary
Board of Examiners in Optometry
Board of Pharmacy
Board of Physical Therapy Examiners
Pilotage Commission
Board of Podiatry Examiners
Board of Examiners for Licensure of Professional Counselors
and Marital and Family Therapists
Board of Examiners in Psychology
Board of Pyrotechnic Safety
Real Estate Appraisers Board
Real Estate Board
Residential Builders Commission
Board of Social Work Examiners
Board of Examiners in Speech-Language Pathology and
Audiology
Board of Veterinary Medical Examiners
(C) Each regulatory board within the department is a separate
board.
(D) The Department of Labor, Licensing and Regulation is a
member of the Governor's executive cabinet and must be headed by a
director who must be appointed by the Governor with the advice and
consent of the Senate, subject to removal from office by the Governor
pursuant to Section 1-3-240(B). The director shall supervise the
department under the direction and control of the Governor and shall
exercise other powers and perform other duties as the Governor
requires.
Section 40-1-45. The department, in consultation with currently
serving board members, the Office of the Governor, members of
professional and industry associations, and the general public shall
encourage public and consumer membership and participation on all
boards and panels associated with the department. Public and
consumer membership may not include current or former, active or
inactive members of the profession or occupation being regulated.
Public and consumer members have the same rights and
responsibilities as professionally or occupationally-related board
members and shall participate fully in all discussions, deliberations,
decisions, and votes of the board or panel on which they serve unless
otherwise prohibited by statute or regulation.
Section 40-1-50. (A) The department is responsible for all
administrative, fiscal, investigative, inspectional, clerical, secretarial,
and license renewal operations and activities of the boards and
commissions enumerated in Section 40-1-40.
The director shall employ and supervise personnel necessary to
effectuate the provisions of this article for each board provided for in
Section 40-1-40. When hiring a person charged with evaluating or
administering professional qualifications or licensing standards, the
director must select from a list of three candidates submitted by the
appropriate licensing board. However, a candidate whose name is
submitted to the director must be chosen from a list of all candidates
found to be qualified by the Human Management Office of the
department. The authority to remove an employee of the department
is vested with the Director of the Department of Labor, Licensing and
Regulation.
The director shall establish compensation for personnel assigned
to the boards as the director considers necessary and appropriate for
the administration of this article. Compensation and necessary
expenses incurred in the performance of duties by personnel assigned
to the board must be paid as an expense of the board in the
administration of this article.
The director shall enter into contracts and agreements the
director considers necessary or incidental to carry out the provisions
of this article to provide for all services required by each board.
Board members must be compensated for their services at the
usual rate for mileage, subsistence, and per diem as provided by law
for members of state boards, committees, and commissions and may
be reimbursed for actual and necessary expenses incurred in
connection with and as a result of their work as members of the
board. The director, within the limits set by the Comptroller General,
shall establish reimbursement standards for travel and other expenses
incurred by a board member in the performance of the board
member's official duties. Compensation and reimbursements paid to
board members under this subsection must be paid as an expense of
the board in the administration of this article and the board's chapter
and must be paid from the fees received by the board pursuant to the
provisions of this article or in a manner prescribed by the Department
of Labor, Licensing and Regulation.
The director shall maintain a separate account for funds
collected on behalf of a board and shall indicate the expenses allotted
to the board. The director shall adjust fees for revenue-funded boards
in accordance with Section 40-1-50 (D).
The director annually shall prepare a report to the Governor and
the General Assembly indicating those regulated trades, occupations,
and professions that do not meet the spirit and intent of Section
40-1-10.
The director may perform any additional administrative
functions requested by the boards.
(B) The department shall keep a record of the proceedings of each
board and shall maintain a registry of all applications for licensure,
permitting, certification, and registration. The registry shall include
the name, age, and last known address of each applicant, the place of
business of the applicant, the education, experience, and other
qualifications of the applicant, type of examination required, whether
or not an authorization to practice was granted, the date of the action
of the department, and other information considered necessary by the
board.
Except as otherwise required by law, the record of a board's
proceedings and its registry of applicants must be open to public
inspection, and a copy of the registry must be provided upon request
and payment of a fee.
Records of a board and its registry are prima facie evidence of its
proceedings, and a copy certified by the administrator or the director
under seal is admissible as evidence with the same force and effect as
the original.
(C) The department may prepare and publish a roster for each
respective board containing the names and places of business of
persons licensed under this article. A copy of the roster must be
provided upon request and upon payment of a fee which may not
exceed the cost of printing and distribution of the roster.
(D) Initial fees for revenue-funded boards must be established by
each board and shall serve as the base for necessary administrative
adjustments. Each board, on at least a biennial basis, shall provide
the director with a statement of anticipated expenditures, program
changes, and other information as may be used in determining fees
for the next biennial period.
Fees for revenue-funded boards must be assessed, collected, and
adjusted on behalf of each board by the department in accordance
with this article. Fees may be adjusted biennially to ensure that they
are sufficient but not excessive to cover expenses including the total
of the direct and indirect costs to the State for the operations of each
respective board. Fees must be deposited in accounts established for
each respective board.
The following steps must be used in the development and
analysis of fee structures:
(1) Determine current financial position of the program.
Each month, the department's administrative section shall prepare
statements reflecting monthly revenue collection activity and related
program expenses for each board program. The financial standing of
a board program must be reviewed each biennium for boards that
renew biennially, annually for boards that renew on an annual basis,
and more frequently if indicators evidence a significant financial
fluctuation of more than ten percent variance between a program's
revenue and related expenses;
(2) Project future activity and related costs of the program.
By reviewing historical volume information and adjusting trends to
reflect changes in the industry, changes in the program, indicators
from the board members to the staff, and general economic indicators,
project program activity including, but not limited to, renewals and
new appicants for the upcoming two to three years. Based on these
population projections, forecast program revenues using the current
fee structure. With input from the board and the staff, analyze related
program direct board costs for the upcoming two to three years, based
on historical trends, changes in program requirements, changes to
expenditure centers, and changes in staffing requirements. To these
direct costs, add the program's proportionate share of other related
costs of the program including, but not limited to, administration of
exams, agency administration, and information systems to arrive at
the total program cost;
(3) Determine the projected financial position of the
program, propose changes where necessary, and compare the total
projected revenue at the current fees to the total projected costs of the
program over the next two to three years. If the current fees and the
projected program activity do not support the projected program's
expenses, develop alternative fee structures which would ensure the
program's continuing financial stability as required by law;
(4) Present findings to the director and staff for discussion,
revision, evaluation, and adoption. While developing fee analyses,
maintain communications with staff and agency management to
ensure all necessary factors are evaluated and cost savings,
efficiencies, and alternative cost reduction scenarios are pursued.
Present fee analyses to board staff and management for discussion
and revision where necessary. Propose alternatives to the director for
consideration when preparing to adopt proposed fee schedules to
achieve a structure sufficient to support the program.
Fees for a board funded by general appropriations must be set by
the General Assembly and deposited into the general fund. All fees
are nonrefundable.
(E) Where appropriate, the director shall adopt the necessary
procedures to implement the biennial renewal of authorizations to
practice in a manner as to ensure that the number of renewals is
reasonably evenly distributed throughout each two-year period.
During any transition, fees must be proportionate to the biennial fee.
(F) A board may elect to delegate to the department the authority
to issue an authorization to practice to an applicant whose proof of
qualifications falls within established guidelines set by the board.
A board may elect to delegate to the department the authority to
deny an authorization to practice to an applicant who has committed
an act that would be grounds for disciplinary action under this article
or the licensing act of the board, who has failed to comply with a final
order of a board, or who has failed to demonstrate the basic
qualifications or standards for practice authorization contained in the
board's licensing act. The applicant may appeal the denial to the
board which has final regulatory decision-making authority for
reconsideration. The board may uphold the denial, order issuance of
the authorization to practice, or order issuance of the authorization to
practice upon conditions set by the board. If the administrative
decision is upheld, the applicant may reapply at the end of a
twelve-month period.
(G) The department shall suspend the practice authorization
issued by a board administered by this article to a person who submits
a check, money draft, or similar instrument for payment of a fee
which is not honored by the financial institution named. The
suspension becomes effective ten days following delivery by certified
mail of written notice of the dishonor and the impending suspension
to the person's address. Upon notification of suspension, the person
may reinstate the authorization to practice upon payment of the fee
and penalties required under statute or regulation. This suspension is
exempt from the Administrative Procedures Act.
(H) The department shall revoke the authorization to practice of a
person found to be in violation of the Family Independence Act as it
relates to child support enforcement requirements.
(I) The department may prepare an annual report for submission
to the Governor.
Section 40-1-60. (A) A board annually shall elect from among its
members a chairman, vice-chairman, and other officers as the board
determines necessary. The board shall adopt rules and procedures
reasonably necessary for the performance of its duties and the
governance of its operations and proceedings.
(B) A board shall meet at least two times a year and at other times
upon the call of the chairman or a majority of the board.
(C) A majority of the members of a board constitutes a quorum;
however, if there is a vacancy on the board, a majority of the
members serving constitutes a quorum.
(D) A board member is required to attend meetings or to provide
proper notice and justification of inability to do so. Unexcused
absences from meetings may result in removal from the board as
provided for in Section 1-3-240.
Section 40-1-70. The powers and duties of regulatory boards
include, but are not limited to:
(1) determining the eligibility of applicants for examination and
licensure;
(2) examining applicants for licensure including, but not limited
to:
(a) prescribing the subjects, character, and manner of licensing
examinations;
(b) preparing, administering, and grading the examination or
assisting in the selection of a contractor for the preparation,
administration, or grading of the examination;
(3) establishing criteria for issuing, renewing, and reactivating the
authorizations to practice of qualified applicants, including the
issuance of active or permanent, temporary, limited, and inactive
licenses, or other categories as may be created;
(4) adopting a code of professional ethics appropriate to the
profession or occupation which it licenses or regulates;
(5) evaluating and approving continuing education course hours
and programs;
(6) conducting hearings on alleged violations of this article and
regulations promulgated under this article;
(7) resolving consumer complaints, where appropriate and
possible;
(8) disciplining persons licensed under this article in a manner
provided for in this article;
(9) promulgating regulations which have been approved by the
director.
Section 40-1-80. (A) If the director has reason to believe that a
person has violated a provision of this article or a regulation
promulgated under this article or the licensing act or regulation of a
board or that a licensee has become unfit to practice the profession or
occupation or if a person files a written complaint with the board or
the director charging a person with the violation of a provision of this
article or a regulation promulgated under this article, the director may
initiate an investigation.
(B) In conducting the investigation, the director may subpoena
witnesses, compel their attendance, take evidence, and require the
production of any matter which is relevant to the investigation
including, but not limited to, the existence, description, nature,
custody, condition, and location of books, documents, or other
tangible items and the identity and location of persons having
knowledge of relevant facts or any other matter reasonably calculated
to lead to the discovery of material evidence. Upon failure to obey a
subpoena or to answer questions propounded by the director, the
director may apply to an administrative law judge for an order
requiring the person to comply.
Section 40-1-90. (A) The results of an investigation must be
presented to the board. If from these results it appears that a violation
has occurred or that a licensee has become unfit to practice the
profession or occupation, the board, in accordance with the
Administrative Procedures Act, may take disciplinary action
authorized by Section 40-1-120. No disciplinary action may be taken
unless the matter is presented to and voted upon by the board. The
board may designate a hearing officer or hearing panel to conduct
hearings or take other action as may be necessary under this section.
(B) For the purpose of a proceeding under this article, the
department may administer oaths and issue subpoenas for the
attendance and testimony of witnesses and the production and
examination of books, papers, and records on behalf of the board or,
upon request, on behalf of a party to the case. Upon failure to obey a
subpoena or to answer questions propounded by the board or its
hearing officer or panel, the board may apply to an administrative law
judge for an order requiring the person to comply with the subpoena.
Section 40-1-100. (A) When the board has reason to believe that
a person is violating or intends to violate a provision of this article or
a regulation promulgated under this article, in addition to all other
remedies, it may order the person immediately to cease and desist
from engaging in the conduct. If the person is practicing a profession
or occupation without being licensed under this article, is violating a
board order, a provision of this article, or a regulation promulgated
under this article, the board also may apply, in accordance with the
rules of the Administrative Law Judge Division, to an administrative
law judge for a temporary restraining order.
No board member or the Director of the Department of Labor,
Licensing and Regulation or another employee of the department may
be held liable for damages resulting from a wrongful temporary
restraining order.
(B) The board may seek from an administrative law judge other
equitable relief to enjoin the violation or intended violation of this
article or a regulation promulgated under this article.
Section 40-1-110. In addition to other grounds contained in this
article and the respective board's chapter:
(1) A board may cancel, fine, suspend, revoke, or restrict the
authorization to practice of an individual who:
(a) used a false, fraudulent, or forged statement or document or
committed a fraudulent, deceitful, or dishonest act or omitted a
material fact in obtaining licensure under this article;
(b) has had a license to practice a regulated profession or
occupation in another state or jurisdiction canceled, revoked, or
suspended or who has otherwise been disciplined;
(c) has intentionally or knowingly, directly or indirectly,
violated or has aided or abetted in the violation or conspiracy to
violate this article or a regulation promulgated under this article;
(d) has intentionally used a fraudulent statement in a document
connected with the practice of the individual's profession or
occupation;
(e) has obtained fees or assisted in obtaining fees under
fraudulent circumstances;
(f) has committed a dishonorable, unethical, or unprofessional
act that is likely to deceive, defraud, or harm the public;
(g) lacks the professional or ethical competence to practice the
profession or occupation;
(h) has been convicted of or has pled guilty to or nolo
contendere to a felony or a crime involving drugs or moral turpitude;
(i) has practiced the profession or occupation while under the
influence of alcohol or drugs or uses alcohol or drugs to such a degree
as to render him unfit to practice his profession or occupation;
(j) has sustained a physical or mental disability which renders
further practice dangerous to the public;
(k) violates a provision of this article or of a regulation
promulgated under this article;
(l) violates the code of professional ethics adopted by the
applicable licensing board for the regulated profession or occupation
or adopted by the department with the advice of the advisory panel
for the professions and occupations it directly regulates.
Each incident is considered a separate violation.
Section 40-1-115. A board has jurisdiction over the actions
committed or omitted by current and former licensees during the
entire period of licensure. The board has jurisdiction to act on any
matter which arises during the practice authorization period.
Section 40-1-120. (A) Upon a determination by a board that one
or more of the grounds for discipline exist, the board may:
(1) issue a public reprimand;
(2) impose a fine not to exceed five hundred dollars unless
otherwise specified by statute or regulation of the board;
(3) place a licensee on probation or restrict or suspend the
individual's license for a definite or indefinite time and prescribe
conditions to be met during probation, restriction, or suspension
including, but not limited to, satisfactory completion of additional
education, of a supervisory period, or of continuing education programs;
(4) permanently revoke the license.
(B) A decision by a board to discipline a licensee as authorized under
this section must be by a majority vote of the total membership of the
board serving at the time the vote is taken.
(C) A final order of a board disciplining a licensee under this section
is public information.
(D) Upon a determination by a board that discipline is not
appropriate, the board may issue a nondisciplinary letter of caution.
Section 40-1-130. A board may deny an authorization to practice to an
applicant who has committed an act that would be grounds for
disciplinary action under this article or the licensing act of the respective
board. A board must deny authorization to practice to an applicant who
has failed to demonstrate the qualifications or standards for licensure
contained in the respective board's licensing act. The applicant shall
demonstrate to the satisfaction of the board that the applicant meets all the
requirements for the issuance of a license.
Section 40-1-140. A person may not be refused an authorization to
practice, pursue, or engage in a regulated profession or occupation solely
because of a prior criminal conviction unless the criminal conviction
directly relates to the profession or occupation for which the authorization
to practice is sought. However, a board may refuse an authorization to
practice if, based upon all information available, including the applicant's
record of prior convictions, it finds that the applicant is unfit or unsuited
to engage in the profession or occupation.
Section 40-1-150. A licensee who is under investigation for a violation
provided for in Section 40-1-110 or the licensing act of the applicable
board for which disciplinary action may be taken may voluntarily
surrender authorization to practice to the board. The voluntary surrender
invalidates the authorization to practice at the time of its relinquishment,
and no person whose authorization to practice is surrendered voluntarily
may practice the profession or occupation unless the board, by a majority
vote, reinstates the license. A person practicing a regulated profession or
occupation during the period of voluntary surrender is considered an
illegal practitioner and is subject to the penalties provided by this article.
The surrender of an authorization to practice may not be considered an
admission of guilt in a proceeding under this article and does not preclude
the board from taking disciplinary action against the licensee as provided
for in this article or the board's licensing act including, but not limited to,
imposing conditions that must be met before the board reinstates the
license.
Section 40-1-160. A person aggrieved by an action of a board may
appeal the decision to the Administrative Law Judge Division in
accordance with the Administrative Procedures Act and the rules of the
Administrative Law Judge Division. Service of a petition requesting a
review does not stay the board's decision pending completion of the
appellate process.
Section 40-1-170. (A) In an order issued in resolution of a
disciplinary proceeding before a board, a licensee found in violation of
the applicable licensing act may be directed to pay a sum not to exceed
the reasonable costs of the investigation and prosecution of the case in
addition to other sanctions.
(B) A certified copy of the actual costs, or a good faith estimate of
costs where actual costs are not available, signed by the director, or the
director's designee, is prima facie evidence of reasonable costs.
(C) Failure to make timely payment in accordance with the order
results in the collection of costs in accordance with Section 40-1-180.
(D) The board may conditionally renew or reinstate for a maximum of
one year the license of an individual who demonstrates financial hardship
and who enters into a formal agreement to reimburse the board within that
one-year period for the unpaid costs.
(E) This section does not apply to a regulated profession or
occupation if a specific provision in the applicable licensing act provides
for recovery of costs in an administrative disciplinary proceeding.
Section 40-1-180. (A) All costs and fines imposed pursuant to this
article and the respective boards' licensing acts are due and payable
immediately upon imposition or at the time indicated by final order of the
board. Unless the costs and fines are paid within sixty days after the
order becomes final, the order becomes a judgment and may be filed and
executed upon in the same manner as a judgment in the court of common
pleas, and the board may collect costs and attorneys' fees incurred in
executing the judgment. Interest at the legal rate accrues on the amount
due from the date imposed until the date paid.
(B) All fines and costs collected under this section must be remitted
by the department to the State Treasurer and deposited in a special fund
established for the department to defray the administrative costs
associated with investigations and hearings under this article. Surplus
funds may be used for other purposes necessary to the operation of the
respective boards or for education or other purposes the department
considers appropriate to the provision of quality services and to
increasing the efficiency and effectiveness of its operation.
Section 40-1-190. (A) A communication, whether oral or written,
made by or on behalf of a person, to the director or board or a person
designated by the director or board to investigate or hear matters relating
to discipline of a licensee, whether by way of complaint or testimony, is
privileged and no action or proceeding, civil or criminal, may be brought
against the person, by or on whose behalf the communication is made,
except upon proof that the communication was made with malice.
(B) Nothing in this article may be construed as prohibiting the
respondent or the respondent's legal counsel from exercising the
respondent's constitutional right of due process under the law or as
prohibiting the respondent from normal access to the charges and
evidence filed against the respondent as part of due process under the law.
(C) Notwithstanding the provisions of this section, a final order of a
board disciplining a licensee is public information as provided for in
Section 40-1-120.
Section 40-1-200. A person who practices or offers to practice a
regulated profession or occupation in this State in violation of this article
or who knowingly submits false information for the purpose of obtaining
a license is guilty of a misdemeanor and, upon conviction, must be
imprisoned not more than one year or fined not more than fifty thousand
dollars.
Section 40-1-210. The department, in addition to instituting a criminal
proceeding, may institute a civil action through the Administrative Law
Judge Division, in the name of the State, for injunctive relief against a
person violating this article, a regulation promulgated under this article,
or an order of the board. For each violation the administrative law judge
may impose a fine of no more than ten thousand dollars.
Section 40-1-220. If a provision of this article or the application of a
provision of this article to a person or circumstance is held invalid, the
invalidity does not affect other provisions or applications of this statute
which can be given effect without the invalid provision or application,
and to this end the provisions of this statute are severable."
SECTION 3. Chapter 73, Title 40, of the 1976 Code is repealed.
SECTION 4. This act takes effect upon approval by the Governor.
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