This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0813b.COM
DATE: 2/6/2024
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 813 Certified Public Accountants
SPONSOR(S): Regulatory Reform & Economic Development Subcommittee, Caruso
TIED BILLS: IDEN./SIM. BILLS: CS/SB 954
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform & Economic Development
Subcommittee
15 Y, 0 N, As CS Larkin Anstead
2) Commerce Committee Larkin Hamon
SUMMARY ANALYSIS
In Florida, public accountancy is regulated by the Board of Accountancy under the Department of Business
and Professional Regulation. The practice of public accountancy includes offering to the public the
performance of services involving audits, reviews, compilations, tax preparation, management advisory or
consulting services, or preparation of financial statements. In order to practice public accountancy, a person
must be licensed as a certified public accountant (CPA).
CPAs are allowed to request their license be placed on inactive status, or the licensee may be placed on
inactive status for failing to meet the CPE requirements of 80 CPE hours every two years for license renewal.
However, Florida law does not currently provide CPAs the option of placing licenses into a retired status as an
alternative to an inactive status.
The bill:
Allows a Florida-licensed CPA to submit an application to the DBPR to place a CPA license in a retired
status if certain conditions are met.
Provides that if a licensee with a retired status license reenters the workforce in a position that has an
association with accounting or any of the CPA services, the licensee automatically loses the retired
status.
Provides a retired licensee may serve without compensation on a board of directors or board of
trustees, provide volunteer tax preparation services, participate in government-sponsored business
mentoring programs, or participate in an advisory role for a similar charitable, civic, or nonprofit
organization.
Provides that a retired licensee may reactivate a license in a conditional manner determined by the
Florida Board of Accountancy, which requires the payment of fees and the completion of continuing
education, which consists of 80 hours every two years.
The bill does not have a fiscal impact on state or local governments.
The bill has an effective date of July 1, 2024.
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DATE: 2/6/2024
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Current Situation
Background
The Florida Board of Accounting (board) in the Department of Business and Professional Regulation
(DBPR) is the agency responsible for regulating and licensing active and inactive certified public
accountants (CPA) and accounting firms in Florida. The Division of Certified Public Accounting provides
administrative support to the 9-member board, which consists of 7 CPAs and 2 laypersons.
1
To engage in the practice of public accounting, an individual or firm must be licensed and business
entities must meet certain formation requirements.
2
The “practice of public accountancy” includes offering to the public the performance of services
involving audits, reviews, compilations, tax preparation, management advisory or consulting services,
or preparation of financial statements.
3
The initial licensing fee for a CPA license is $50
4
, and the biennial renewal fee is $105.
5
A person may be charged with a first-degree misdemeanor if they are not a licensed CPA and they
perform:
6
Services involving the expression of an opinion on financial statements,
The attestation as an expert in accountancy to the reliability or fairness of the presentation of
financial information,
The utilization of any form of opinion or financial statements that provide a level of assurance,
The utilization of any form of disclaimer of opinion which conveys an assurance of reliability as to
matters not specifically disclaimed, or
The expression of an opinion on the reliability of an assertion by one party for the use by a third
party.
Continuing Education
CPAs are required to complete 80 hours
7
of continuing professional education (CPE), which is set by
the board, in public accounting subjects every 2 years to renew their license. The board sets CPE
hours and has the authority to require between 48 and 80 hours every 2 years. The board has the
authority to prescribe by rule additional CPE hours, not to exceed 25 percent of the total hours
required, for failure to complete the hours required for renewal by the end of the reestablishment
period.
8
The Florida Institute of Certified Public Accountants (FICPA), one of Florida’s largest CPA voluntary
associations, offers members 20 hours of free CPE per year. The membership fee is $295 or $395 per
1
S. 473.303, F.S.
2
S. 473.302, F.S.
3
S. 473.302(8), F.S.
4
“Initial CPA License”, Florida Department of Business and Professional Regulation,
www.myfloridalicense.com/CheckListDetail.asp?SID=&xactCode=1035&clientCode=0101&XACT_DEFN_ID=18291 (last
visited Jan .23, 2024).
5
Email from Derek Miller, Director of Legislative Affairs, Florida Department of Business and Professional Regulation,
RE: CPAs (Jan. 23, 2024).
6
S. 473.322(1)(c), F.S.
7
S. 473.312(1)(a), F.S. allows the board to require between 48 and 80 hours of CPE every 2 years. The board requires
80 hours in r. 61H1-33.003, F.A.C.
8
S. 473.312(1)(a), F.S. STORAGE NAME: h0813b.COM PAGE: 3
DATE: 2/6/2024
year depending on how many years a member has been licensed. Other organizations also offer free
CPE hours. Otherwise, private companies offer courses that are available online year round for
between $200 and $600 per year.
The board also requires that a specific number of hours be completed in set categories or subjects. At
least 10 percent of the total hours required by the board must be in accounting-related and auditing-
related subjects, as distinguished from other subjects that include federal and local taxation matters
and management services.
9
Five percent of the total hours required by the board must be in ethics
applicable to the practice of public accounting. This requirement must be administered by providers
approved by the board and include a review of the provisions of ch. 455, F.S., ch. 473, F.S., and the
related administrative rules.
10
Inactive Licenses
A CPA may request that their license be placed on inactive status. A CPA may also be placed on
inactive status for failing to meet the CPE requirements for license renewal. A CPA with an inactive
license cannot use the CPA designation and cannot practice public accounting.
11
Every two years, an
individual with an inactive license has to pay $105 to maintain his or her license.
12
However, CPE
requirements are suspended while his or her license is inactive.
13
The board is authorized to adopt
rules establishing the minimum requirements for placing a license on inactive status, renewing an
inactive license, and reactivating the inactive license.
14
The current fee for reactivating an inactive CPA license is $250.
15
The CPE requirements for
reactivating an inactive or delinquent license are 120 hours, regardless of how long the license is
inactive. These CPE requirements include:
At least 30 hours in accounting-related and auditing-related subjects;
Not more than 30 hours in behavioral subjects; and
A minimum of 8 hours in ethics subjects approved by the board.
Retired Status
The American Institute of CPAs (AICPA) estimated that approximately 75 percent of its members met
the retirement age in 2020. According to AICPA, “many of these retirees are well respected business
leaders in their communities who would like to find ways to continue to be of service, without
necessarily remaining an active CPA in practice.”
16
The AICPA provides a uniform retired CPA status in their model rules that states
17
may adopt allowing
retired CPAs to offer a limited array of volunteer, uncompensated services to the public. The Model Act
allows inactive CPAs, who are at least 55 years of age to refer to themselves as “Retired-CPAs” and
register as such with their state board of accountancy. They are able to participate in activities such as
9
S. 473.312(1)(b), F.S.
10
S. 473.312(1)(c), F.S.
11
“Request Inactive Status”, The Florida Department of Business and Professional Regulation,
www.myfloridalicense.com/CheckListDetail.asp?SID=&xactCode=4020&clientCode=0101&XACT_DEFN_ID=2738#:~:text
=Licensees%20who%20no%20longer%20wish,can%20they%20practice%20public%20accounting (last visited Jan. 28,
2024).
12
R. 61H1-31.003, F.A.C.
13
R. 61H1-30.040(1), F.A.C.
14
S. 473.313, F.S.
15
R. 61H1-31.006, F.A.C.
16
American Institute of Certified Public Accountants, Exposure Draft: AICPA/NASBA Uniform Accountancy Act and
NASBA Uniform Accountancy Act Rules (November 2015)
https://www.aicpa.org/advocacy/state/retiredcpastatusexposuredraft.html, p. 3 (last visited Jan. 23, 2024).
17
See some states that have adopted “retired CPA status”, i.e., Ohio Admin. Code 4701-7-06(c); 21 N.C. Admin. Code
8J.0112; La. Rev. Stat. § 37:76(D)(2). STORAGE NAME: h0813b.COM PAGE: 4
DATE: 2/6/2024
volunteer tax preparation services, government-sponsored business mentoring programs, and on
boards of nonprofit organizations.
18
Florida law does not currently provide CPAs the option of placing licenses into a retired
19
status as
an alternative to an inactive status.
Uniform Accountancy Act
Section 473.302(9), F.S., defines the term “Uniform Accountancy Act” to mean the Uniform
Accountancy Act, Seventh Edition, dated May 2014 and published by the American Institute of
Certified Public Accountants and the National Association of State Boards of Accountancy. The
Uniform Accountancy Act provides uniform standards for the regulation of accountancy. The
current edition is the eighth edition, dated January 2018.
Effect of the Bill
Retired Status
The bill creates a “retired status” for CPA licensees. The bill defines a "retired licensee" as a licensee
whose license has been placed in retired status by the department.
The bill allows a Florida-licensed CPA to submit an application to the DBPR to place a CPA license in a
retired status if the licensee:
Is at least 65 years of age;
Holds a current active or inactive license; and
Is in good standing and not the subject of any sanction or disciplinary action.
The bill authorizes the board to prescribe by rule the application for placing a license into retired status.
The application must state that the applicant has no association with accounting or any of the services
defined in s. 473.302(8), F.S.
Under the bill, a licensee in retired status who reenters the workforce in a position that has an
association with accounting, or any related services defined in s. 473.302(8), F.S., automatically loses
his or her retired status except as provided in s. 473.313(8)(a), F.S, relating to placing a license in an
inactive status.
The bill provides that the term “retired licensee” for the purposes of a retired license status in s.
473.313(2), F.S., means a licensee whose license has been placed in a retired status by the
department.
The bill authorizes a retired licensee to:
Serve without compensation on a board of directors or board of trustees;
Provide volunteer tax preparation services;
Participate in government-sponsored business mentoring program such as the Internal Revenue
Service’s Volunteer Income Tax Assistance program or the Small Business’s SCORE program;
or
Participate in an advisory role for a similar charitable, civic, or nonprofit organization.
The board must require retired licensees to affirm in writing their understanding of the limited types of
activities allowed while in retired status and their professional duty to ensure competency to participate
in the activities.
18
Supra note 11.
19
The FICA offers membership to “retired CPAs” in Florida. “Retired” members pay $115 a year for membership and must
be 55 years or older and have been licensed in the U.S. in the past 10 years. See “Membership Types”, Florida Institute of
CPAs, www.ficpa.org/membership/types (last visited Jan. 27, 2024). STORAGE NAME: h0813b.COM PAGE: 5
DATE: 2/6/2024
Under the bill, a retired licensee may accept routine reimbursement for actual costs of travel and meals
associated with volunteer services or de minimis per diem amounts paid to the retired licensee to cover
such expenses as allowed by law.
Retired licensees are permitted to use the title of “retired CPA” on any business card or letterhead or
any other printed or electronic document as long as it is used in a manner that is not confusing to the
public.
A “retired CPA” title may not offer or render professional services that require her or his signature and
the use of the CPA title, regardless of whether “retired” is attached to such title.
Retired licensees are not required:
To have a certificate issued with the word “retired”.
To maintain the CPE requirements set forth in s. 473.312, F.S.
A retired licensee may reactivate his or her license in a conditional manner determined by the board.
The conditions of reactivation must require the payment of fees and the completion of any continuing
education requirements.
Under the bill, the CPE requirements for reactivation are those of the most recent biennium plus one-
half of the continuing education requirements in s. 473.312, F.S., for each biennium or part thereof
during which the license was on retired status.
Uniform Accountancy Act
The bill updates the definition of “Uniform Accountancy Act” to reference the current Eighth Edition,
dated January 2018 and published by the American Institute of Certified Public Accountants and the
National Association of State Boards of Accountancy.
B. SECTION DIRECTORY:
Section 1: Amends s. 473.313, F.S., providing requirements for CPA retired status licenses.
Section 2: Amends s. 73.302, updating definition of Uniform Accountancy Act.
Section 3: Provides an effective date.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR: STORAGE NAME: h0813b.COM PAGE: 6
DATE: 2/6/2024
A retired CPA wishing to reactivate her or his license will be subject to reactivation fees in an amount
determined by the board, and the expense of completing required continuing education hours.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to affect county or municipal governments.
2. Other:
Section 19(a), Article VII of the State Constitution limits the authority of the legislature to enact
legislation that imposes a new state tax or fee by requiring such legislation to be approved by a two-
thirds vote in each chamber of the legislature. Section 19(e), Article VII of the Florida Constitution
provides that a state tax or fee imposed, authorized, or raised must be contained in a separate bill
that contains no other subject. The bill permits a licensed CPA in retired status to reactivate his or
her license in a conditional manner determined by the Florida Board of Accountancy.
The bill requires that the conditions for the reactivation of a license in retired status must include the
payment of fees. The board currently has the authority to impose a fee for the reactivation of an
inactive license. Because the bill requires the board to impose a fee of an unknown amount for the
reactivation of a license in retired status, it is unclear if the voting and separate bill requirements
found in the State Constitution apply to the bill.
B. RULE-MAKING AUTHORITY:
The board will need to generate rules for retired status licenses. There is sufficient rulemaking authority
to do so.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On February 1, 2024, the Regulatory Reform & Economic Development Subcommittee adopted an
amendment and reported the bill favorably as a committee substitute. The committee substitute makes
technical changes, and clarifies continuing education requirements for retired status licensees who become
active licensees.
This analysis is drafted to the committee substitute as passed by the Regulatory Reform & Economic
Development Subcommittee.