H*3764(Rat #0447, Act #0325 of 1998)  General Bill, By Cato, Altman, Bailey, 
Barrett, Battle, Bauer, J.M. Baxley, Boan, Bowers, H. Brown, Campsen, Chellis, 
Clyburn, Cobb-Hunter, J.L.M. Cromer, Dantzler, Davenport, Edge, Fleming, Gamble, 
Gourdine, Harrell, Harrison, Harvin, Haskins, Hawkins, J. Hines, Hinson, 
J.H. Hodges, Inabinett, Kelley, M.H. Kinon, Kirsh, Knotts, Koon, Law, Lee, 
L.H. Limbaugh, Limehouse, Littlejohn, Maddox, Mason, McCraw, McKay, McMahand, 
Meacham, Miller, V.T. Mullen, Neilson, Pinckney, Quinn, Riser, Robinson, 
Sandifer, Scott, Seithel, Sharpe, Simrill, D. Smith, F. Smith, Spearman, Stuart, 
Trotter, Vaughn, Walker, Webb, Whatley, Wilder, Wilkins, Woodrum, W.J. Young and 
Young-Brickell

Similar(S 582)
 A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION
 40-2-55 SO AS TO REQUIRE A CERTIFIED PUBLIC ACCOUNTANT (CPA) TO ENTER A
 SEPARATE WRITTEN CONTRACT WITH A CLIENT IN ORDER TO CHARGE A CONTINGENCY FEE
 OR COMMISSION; TO AMEND SECTION 40-2-30, RELATING TO REQUIREMENTS FOR USING
 THE TITLE AND DESIGNATION OF "CERTIFIED PUBLIC ACCOUNTANT" AND FOR
 REPRESENTING AN ENTITY AS A CPA PARTNERSHIP, SO AS TO REVISE THE PARTNERSHIP
 REQUIREMENTS; TO AMEND SECTION 40-2-190, RELATING TO CERTIFICATION
 REQUIREMENTS, SO AS TO DELETE THE PROVISION THAT THE EXPERIENCE REQUIREMENT
 MUST INCLUDE CERTAIN AUDITING EXPERIENCE AND TO PROHIBIT THE BOARD FROM
 REQUIRING A MINIMUM NUMBER OF HOURS IN AUDITING FINANCIAL STATEMENTS; AND TO
 AMEND SECTION 40-2-380, RELATING TO THE PROMULGATION OF REGULATIONS BY THE
 BOARD OF ACCOUNTANCY, SO AS TO PROHIBIT THE BOARD FROM PRESCRIBING A MINIMUM
 NUMBER OF HOURS IN ACCOUNTING OR AUDITING FOR CONTINUING EDUCATION AND REQUIRE
 THE BOARD TO PROMULGATE REGULATIONS CONFORMING TO AMERICAN INSTITUTE OF
 CERTIFIED PUBLIC ACCOUNTANTS OR NATIONAL ASSOCIATION OF BOARDS OF ACCOUNTANCY
 STANDARDS FOR FORMS OF PRACTICE, CONTINGENT FEES, AND COMMISSIONS.-AMENDED
 TITLE

   04/01/97  House  Introduced and read first time HJ-15
   04/01/97  House  Referred to Committee on Labor, Commerce and
                     Industry HJ-16
   04/16/97  House  Committee report: Favorable Labor, Commerce and
                     Industry HJ-2
   04/22/97  House  Requests for debate-Rep(s). Scott HJ-18
   04/22/97  House  Debate adjourned until Wednesday, April 23, 1997 HJ-19
   04/23/97  House  Requests for debate-Rep(s). Cato, Young-Brickell,
                     Campsen, Meacham, Whipper, Chellis, Hinson,
                     Dantzler & Wilder HJ-16
   04/24/97  House  Requests for debate removed-Rep(s). Cato,
                     Young-Brickell, Chellis, Meacham, Scott,
                     Campsen, Whipper, Wilder, Dantzler & Hinson HJ-28
   04/29/97  House  Amended HJ-104
   04/29/97  House  Read second time HJ-104
   04/30/97  House  Read third time and sent to Senate HJ-29
   05/01/97  Senate Introduced, read first time, placed on calendar
                     without reference SJ-29
   06/03/97  Senate Special order SJ-158
   06/04/97  Senate Read second time SJ-110
   06/04/97  Senate Ordered to third reading with notice of
                     amendments SJ-110
   03/10/98  Senate Amended SJ-28
   03/11/98  Senate Debate adjourned SJ-27
   03/12/98  Senate Amended SJ-20
   03/12/98  Senate Read third time and returned to House with
                     amendments SJ-20
   03/18/98  House  Debate adjourned on amendments HJ-34
   03/19/98  House  Senate amendment amended HJ-45
   03/19/98  House  Returned to Senate with amendments HJ-48
   03/24/98  Senate Non-concurrence in House amendment SJ-16
   03/25/98  House  House insists upon amendment and conference
                     committee appointed Reps. Reps. Chellis, Canty &
                     Gamble HJ-2
   03/25/98  Senate Conference committee appointed Sens. Moore,
                     Passailaigue, and Alexander SJ-11
   05/27/98  House  Conference report received and adopted HJ-17
   05/27/98  Senate Conference report received and adopted SJ-23
   05/27/98  Senate Ordered enrolled for ratification SJ-29
   06/04/98         Ratified R 447
   06/08/98         Signed By Governor
   06/08/98         Effective date 06/08/98
   06/18/98         Copies available
   06/18/98         Act No. 325

AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 40-2-55 SO AS TO REQUIRE A CERTIFIED PUBLIC ACCOUNTANT (CPA) TO ENTER A SEPARATE WRITTEN CONTRACT WITH A CLIENT IN ORDER TO CHARGE A CONTINGENCY FEE OR COMMISSION; TO AMEND SECTION 40-2-30, RELATING TO REQUIREMENTS FOR USING THE TITLE AND DESIGNATION OF CERTIFIED PUBLIC ACCOUNTANT AND FOR REPRESENTING AN ENTITY AS A CPA PARTNERSHIP, SO AS TO REVISE THE PARTNERSHIP REQUIREMENTS; TO AMEND SECTION 40-2-190, RELATING TO CERTIFICATION REQUIREMENTS, SO AS TO DELETE THE PROVISION THAT THE EXPERIENCE REQUIREMENT MUST INCLUDE CERTAIN AUDITING EXPERIENCE AND TO PROHIBIT THE BOARD FROM REQUIRING A MINIMUM NUMBER OF HOURS IN AUDITING FINANCIAL STATEMENTS; AND TO AMEND SECTION 40-2-380, RELATING TO THE PROMULGATION OF REGULATIONS BY THE BOARD OF ACCOUNTANCY, SO AS TO PROHIBIT THE BOARD FROM PRESCRIBING A MINIMUM NUMBER OF HOURS IN ACCOUNTING OR AUDITING FOR CONTINUING EDUCATION AND TO REQUIRE THE BOARD TO PROMULGATE REGULATIONS CONFORMING TO AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OR NATIONAL ASSOCIATION OF BOARDS OF ACCOUNTANCY STANDARDS FOR FORMS OF PRACTICE, CONTINGENT FEES, AND COMMISSIONS.

Be it enacted by the General Assembly of the State of South Carolina:

Written contract required for contingency fee or commission

SECTION 1. The 1976 Code is amended by adding:

"Section 40-2-55. A certified public accountant may charge a contingency fee or commission, or both, for performing services under this chapter if the client and the certified public accountant enter into a separate written contract, executed by both parties, specifying the terms of the contingency fee or commission, or both, for each transaction to be conducted. No contingency fee or commission is payable or enforceable in the absence of a clearly executed written contract."

Requirements to use title of "certified public accountant"

SECTION 2. Section 40-2-30 of the 1976 Code, as added by Act 453 of 1996, is amended to read:

"Section 40-2-30. (A) 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 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.

(B) 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."

Experience requirement for certification

SECTION 3. The fourth unnumbered paragraph of Section 40-2-190 of the 1976 Code, as added by Act 453 of 1996, is amended to read:

"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); however, this experience shall not require a minimum number of hours in auditing financial statements."

Promulgation of regulation

SECTION 4. Section 40-2-380 of the 1976 Code, as added by Act 453 of 1996, is amended to read:

"Section 40-2-380. (A) 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; however, this continuing education requirement shall not prescribe a minimum number of hours in accounting and/or auditing subjects. 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.

(B) The board also shall promulgate regulations for forms of practice, contingent fees, and commissions which shall conform to the professional standards of the American Institute of Certified Public Accountants as of December 31, 1996, or the National Association of Boards of Accountancy, or both."

Time frame for promulgating regulations

SECTION 5. Within ninety days of this act's effective date, the Board of Accountancy shall promulgate the regulations required by Section 40-2-380(B), as contained in Section 4 of this act.

Time effective

SECTION 6. This act takes effect upon approval by the Governor.

Approved the 8th day of June, 1998.