*HB1138.1*
January 25, 2024
HOUSE BILL No. 1138
_____
DIGEST OF HB 1138 (Updated January 25, 2024 9:04 am - DI 141)
Citations Affected: IC 25-1; IC 25-2.1; IC 25-4; IC 25-23.6;
IC 34-30; IC 34-46.
Synopsis: Professional licensing matters. Removes references to a
quality review in provisions relating to the licensing of accountants.
Requires the Indiana board of accountancy (board) to adopt rules
requiring the firm to allow the administering entity to provide access
to the results of its most recently accepted peer review and other
objective information to the board. Removes language requiring the
administering entity to make a peer review report available to the
oversight committee not more than 30 days after the issuance of the
peer review report. Provides that the results of a peer review may be
treated as a complaint submitted by the board. Removes language
requiring the peer review committee issuing a report to cooperate with
an investigation of a complaint. Allows the use of certain titles by an
individual who is enrolled in or has graduated from a school or college
of architecture or an accredited curriculum of landscape architecture.
Allows an individual to take the examination provided by the
behavioral health and human services licensing board for a license as
a social worker if the individual: (1) is enrolled in the last term of the
last year of a program leading to a degree that meets the educational
requirements; and (2) provides a letter of good standing from the
director of the social work department or the director's designee.
Effective: July 1, 2024.
Goss-Reaves
January 8, 2024, read first time and referred to Committee on Employment, Labor and
Pensions.
January 25, 2024, amended, reported — Do Pass.
HB 1138—LS 6525/DI 141 January 25, 2024
Second Regular Session of the 123rd General Assembly (2024)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2023 Regular Session of the General Assembly.
HOUSE BILL No. 1138
A BILL FOR AN ACT to amend the Indiana Code concerning
professions and occupations.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 25-1-11-12, AS AMENDED BY P.L.197-2011,
2 SECTION 74, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2024]: Sec. 12. (a) The board may impose any of the
4 following sanctions, singly or in combination, if the board finds that a
5 practitioner is subject to disciplinary sanctions under sections 5
6 through 9 of this chapter:
7 (1) Permanently revoke a practitioner's license.
8 (2) Suspend a practitioner's license.
9 (3) Censure a practitioner.
10 (4) Issue a letter of reprimand.
11 (5) Place a practitioner on probation status and require the
12 practitioner to:
13 (A) report regularly to the board upon the matters that are the
14 basis of probation;
15 (B) limit practice to those areas prescribed by the board;
16 (C) continue or renew professional education approved by the
17 board until a satisfactory degree of skill has been attained in
HB 1138—LS 6525/DI 141 2
1 those areas that are the basis of the probation;
2 (D) perform or refrain from performing any acts, including
3 community restitution or service without compensation, that
4 the board considers appropriate to the public interest or to the
5 rehabilitation or treatment of the practitioner; or
6 (E) satisfactorily complete a quality review (before July 1,
7 2012) or peer review (after June 30, 2012) specified by the
8 board as a condition for termination of probationary status if
9 the practitioner is a licensee (as defined in IC 25-2.1-1-8).
10 (6) Assess a civil penalty against the practitioner for not more
11 than one thousand dollars ($1,000) for each violation listed in
12 sections 5 through 9 of this chapter except for a finding of
13 incompetency due to a physical or mental disability.
14 (7) Order a practitioner to pay consumer restitution to a person
15 who suffered damages as a result of the conduct or omission that
16 was the basis for the disciplinary sanctions under this chapter.
17 (b) When imposing a civil penalty under subsection (a)(6), the board
18 shall consider a practitioner's ability to pay the amount assessed. If the
19 practitioner fails to pay the civil penalty within the time specified by
20 the board, the board may suspend the practitioner's license without
21 additional proceedings. However, a suspension may not be imposed if
22 the sole basis for the suspension is the practitioner's inability to pay a
23 civil penalty.
24 (c) The board may withdraw or modify the probation under
25 subsection (a)(5) if the board finds after a hearing that the deficiency
26 that required disciplinary action has been remedied or that changed
27 circumstances warrant a modification of the order.
28 SECTION 2. IC 25-2.1-1-6.3 IS AMENDED TO READ AS
29 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 6.3. "Compilation"
30 means providing a service of any compilation engagement to be
31 performed in accordance with AICPA Statements on Standards for
32 Accounting and Review Services (SSARS). or other similar standards
33 adopted by reference under IC 25-2.1-2-15 that is presenting, in the
34 form of financial statements, information that is the representation of
35 the management or owners without undertaking to express any
36 assurance on the statements.
37 SECTION 3. IC 25-2.1-1-8.7, AS ADDED BY P.L.197-2011,
38 SECTION 75, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
39 JULY 1, 2024]: Sec. 8.7. (a) "Peer review" means a study, an appraisal,
40 or a review of at least one (1) aspect of the professional work of:
41 (1) an individual who; or
42 (2) a firm in the practice of accountancy that;
HB 1138—LS 6525/DI 141 3
1 attests or issues compilation reports, by at least one (1) individual who
2 holds a certificate from any state and possesses qualifications that meet
3 the applicable substantial equivalency standards and who is
4 independent of the individual or firm being reviewed. The term
5 includes any part of a quality review conducted before July 1, 2012,
6 that becomes part of a peer review conducted or peer review report
7 issued after June 30, 2012.
8 (b) After June 30, 2012, any reference in any law, rule, or other
9 document to "quality review" as that term was applied under this article
10 before July 1, 2012, shall be treated as a reference to peer review.
11 SECTION 4. IC 25-2.1-2-15, AS AMENDED BY P.L.197-2011,
12 SECTION 77, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
13 JULY 1, 2024]: Sec. 15. The board may adopt rules under IC 4-22-2
14 governing the administration and enforcement of this article and the
15 conduct of licensees, including the following:
16 (1) The board's meetings and conduct of business.
17 (2) The procedure of investigations and hearings.
18 (3) The educational and experience qualifications required for the
19 issuance of certificates under this article and the continuing
20 professional education required for renewal of certificates under
21 IC 25-2.1-4.
22 (4) Rules of professional conduct directed to controlling the
23 quality and probity of the practice of accountancy by licensees,
24 including independence, integrity, and objectivity, competence
25 and technical standards, and responsibilities to the public and
26 clients.
27 (5) The actions and circumstances that constitute professing to be
28 a licensee in connection with the practice of accountancy.
29 (6) The manner and circumstances of use of the title "certified
30 public accountant" and the abbreviation "CPA".
31 (7) Quality reviews (before July 1, 2012) or Peer reviews (after
32 June 30, 2012) that may be required to be performed under this
33 article.
34 (8) Methods of applying for and conducting the examinations,
35 including methods for grading examinations and determining a
36 passing grade required of an applicant for a certificate. However,
37 the board shall to the extent possible provide that the
38 examination, grading of the examination, and the passing grades
39 are uniform with those applicable in other states.
40 (9) Substantial equivalency.
41 (10) Administration of the accountant investigative fund
42 established by IC 25-2.1-8-4.
HB 1138—LS 6525/DI 141 4
1 SECTION 5. IC 25-2.1-5-8, AS AMENDED BY P.L.168-2016,
2 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2024]: Sec. 8. (a) The board shall adopt rules that require as
4 a condition to renew a permit under this chapter, that an applicant
5 undergo, not more than once every three (3) years, a peer review
6 conducted in a manner the board specifies.
7 (b) The rules adopted under subsection (a) must:
8 (1) be adopted reasonably in advance of the time when a peer
9 review first becomes effective;
10 (2) include reasonable provision for compliance by an applicant
11 showing that the applicant has in the preceding three (3) years
12 undergone a peer review that is a satisfactory equivalent to the
13 peer review required under this section;
14 (3) require the firm to submit a copy of allow the administering
15 entity to provide access to the results of its most recently
16 accepted peer review and other objective information specified
17 by the rules to the board; either directly or through the
18 administering entity;
19 (4) require, with respect to peer reviews under subdivision (2),
20 that the peer review be subject to review by an oversight body
21 committee established or sanctioned by the board that shall:
22 (A) comply with IC 25-2.1-9-4; and
23 (B) periodically report to the board on the effectiveness of the
24 review program and provide to the board a listing of firms that
25 have participated in a peer review program; and
26 (5) subject to section 9 of this chapter and IC 25-2.1-9-4, require,
27 with respect to peer reviews under subdivision (2), that:
28 (A) the proceedings, records, and work papers of a review
29 committee are privileged and are not subject to discovery,
30 subpoena, or other means of legal process or introduction into
31 evidence in a civil action, arbitration, administrative
32 proceeding, or Indiana board of accountancy proceeding; and
33 (B) a member of the review committee or individual who was
34 involved in the peer review process is not permitted or
35 required to testify in a civil action, arbitration, administrative
36 proceeding, or board proceeding to matters:
37 (i) produced, presented, disclosed or discussed during, or in
38 connection with, the peer review process; or
39 (ii) that involve findings, recommendations, evaluations,
40 opinions, or other actions of the committee or a committee
41 member.
42 SECTION 6. IC 25-2.1-8-2, AS AMENDED BY P.L.197-2011,
HB 1138—LS 6525/DI 141 5
1 SECTION 81, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2 JULY 1, 2024]: Sec. 2. In place of or in addition to any remedy
3 specifically provided in IC 25-1-11, the board may require the
4 following of a licensee:
5 (1) To undergo a quality review (before July 1, 2012) or a peer
6 review. (after June 30, 2012).
7 (2) To satisfactorily complete continuing professional education
8 programs.
9 SECTION 7. IC 25-2.1-9-4, AS ADDED BY P.L.197-2011,
10 SECTION 83, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
11 JULY 1, 2024]: Sec. 4. (a) This section applies to a licensee that
12 receives a peer review rating of fail on a peer review report issued after
13 June 30, 2012, for a peer review conducted under IC 25-2.1-5-8.
14 (b) The following definitions apply throughout this section:
15 (1) "Administering entity" refers to the oversight body established
16 or sanctioned by the board to conduct a peer review program.
17 (2) "Director" refers to the director of the division of consumer
18 protection in the office of the attorney general.
19 (3) "Oversight committee" refers to a committee of licensees who
20 are not board members that is designated by the board to receive
21 a report. the results of a peer review.
22 (4) "Report" refers to a peer review report described in subsection
23 (a), including any description of the deficiencies on which the
24 peer review rating of fail is based.
25 (c) The board shall provide the director with the name and contact
26 information for the administering entity.
27 (d) Not more than thirty (30) days after the issuance of a report, the
28 administering entity shall make the report available to the oversight
29 committee. The oversight committee may forward the report results of
30 a peer review to the director. Receipt of the report shall results may
31 be treated under IC 25-1-7-4, IC 25-1-7-5, and IC 25-1-7-6 as a
32 complaint submitted by the board. If, after conducting an investigation,
33 the director believes that a licensee should be subjected to disciplinary
34 sanctions by the board, the director shall report the director's
35 determination to the attorney general. Upon receiving the director's
36 report, the attorney general may prosecute the matter, on behalf of the
37 state of Indiana, before the board. IC 25-1-7-7(b) does not apply to a
38 determination related to a complaint filed under this section.
39 (e) The administering entity and the peer review committee issuing
40 a report shall cooperate with an investigation under IC 25-1-7 of a
41 complaint filed under this section. and with any resulting proceeding,
42 including compliance with any request for access to or production of
HB 1138—LS 6525/DI 141 6
1 the proceedings, records, and work papers of the review committee by
2 the director, the office of the attorney general, or a party to any
3 proceeding initiated as a result of the filing of a complaint under this
4 section. However, all complaints and information pertaining to a
5 complaint are confidential until the attorney general files notice with
6 the board of the attorney general's intent to prosecute a licensee under
7 IC 25-1-7-7. Any meeting of the board, the oversight committee, or a
8 designee of the board or oversight committee that is required in an
9 investigation conducted before the attorney general files notice of
10 intent to prosecute shall be conducted as an executive session under
11 IC 5-14-1.5-6.1.
12 SECTION 8. IC 25-2.1-9-5, AS ADDED BY P.L.197-2011,
13 SECTION 84, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
14 JULY 1, 2024]: Sec. 5. An:
15 (1) entity administering a quality review program before July 1,
16 2012, or a peer review program; after June 30, 2012;
17 (2) officer, member, or employee of an entity administering a
18 quality review program before July 1, 2012, or a peer review
19 program; after June 30, 2012;
20 (3) employee or member of a quality review committee before
21 July 1, 2012, or a peer review committee; after June 30, 2012; and
22 (4) entity in which or for which a member of a quality review
23 committee (before July 1, 2012) or peer review committee (after
24 June 30, 2012) is a sole proprietor, a partner, a shareholder, a
25 member, or an employee;
26 is immune from civil liability that would otherwise arise from
27 communications, supervision, findings, recommendations, evaluations,
28 reports, opinions, or other actions taken or omissions occurring in good
29 faith in the course and scope of the duties of a quality review
30 administering entity (before July 1, 2012) or peer review administering
31 entity (after June 30, 2012) or a quality review committee (before July
32 1, 2012) or peer review committee (after June 30, 2012) that arise
33 under this article, including the rules adopted by the board. The
34 immunity granted under this section includes immunity for an act or
35 omission related to any part of a quality review conducted under this
36 article before July 1, 2012, that becomes part of a peer review
37 conducted or peer review report issued after June 30, 2012.
38 SECTION 9. IC 25-2.1-11-2, AS AMENDED BY P.L.197-2011,
39 SECTION 85, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
40 JULY 1, 2024]: Sec. 2. Before reinstating a suspended certificate or
41 permit under IC 25-1-11-14, the board may require the applicant to
42 show successful completion of specified continuing professional
HB 1138—LS 6525/DI 141 7
1 education or other actions, and the board may make the reinstatement
2 of a certificate or permit conditional on satisfactory completion of a
3 quality review (before July 1, 2012) or peer review (after June 30,
4 2012) specified by the board.
5 SECTION 10. IC 25-2.1-14-2, AS AMENDED BY P.L.197-2011,
6 SECTION 86, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7 JULY 1, 2024]: Sec. 2. The information derived from or as the result
8 of professional services is confidential and privileged. However, this
9 section does not prohibit a certified public accountant, a public
10 accountant, or an accounting practitioner from disclosing any data
11 required to be disclosed by the standards of the profession:
12 (1) in rendering an opinion on the presentation of financial
13 statements;
14 (2) in ethical investigations conducted by private professional
15 organizations;
16 (3) in the course of quality reviews (before July 1, 2012) or peer
17 reviews (after June 30, 2012) or an investigation or proceeding
18 related to a quality review (before July 1, 2012) or peer review;
19 (after June 30, 2012); or
20 (4) in making disclosure where the financial statements or the
21 professional services of an accountant are contested.
22 SECTION 11. IC 25-2.1-14-5, AS AMENDED BY P.L.197-2011,
23 SECTION 88, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
24 JULY 1, 2024]: Sec. 5. (a) This chapter does not prohibit a temporary
25 transfer of work papers or other material necessary to carry out quality
26 reviews (before July 1, 2012) or peer reviews, (after June 30, 2012),
27 conduct an investigation or proceeding related to a quality review
28 (before July 1, 2012) or peer review, (after June 30, 2012), or comply
29 with the disclosure of information under this chapter.
30 (b) A licensee is not required to keep any work paper beyond the
31 period prescribed in any applicable statute.
32 SECTION 12. IC 25-4-1-18.5 IS ADDED TO THE INDIANA
33 CODE AS A NEW SECTION TO READ AS FOLLOWS
34 [EFFECTIVE JULY 1, 2024]: Sec. 18.5. (a) An individual who has
35 graduated from a school or college of architecture accredited by
36 the National Architectural Accrediting Board, Inc., or its successor
37 may profess to be an "architectural graduate" and use the term to
38 describe the individual.
39 (b) An individual currently enrolled in, but not yet graduated
40 from, a school or college of architecture accredited by the National
41 Architectural Accrediting Board, Inc., or its successor may profess
42 to be an "architectural intern" and use the term to describe the
HB 1138—LS 6525/DI 141 8
1 individual.
2 SECTION 13. IC 25-4-2-10.5 IS ADDED TO THE INDIANA
3 CODE AS A NEW SECTION TO READ AS FOLLOWS
4 [EFFECTIVE JULY 1, 2024]: Sec. 10.5. (a) An individual who has
5 graduated from an accredited curriculum of landscape
6 architecture presented by a college or school approved by the
7 board may profess to be a "landscape architectural graduate" and
8 use the term to describe the individual.
9 (b) An individual currently enrolled in, but not yet graduated
10 from, an accredited curriculum of landscape architecture
11 presented by a college or school approved by the board may
12 profess to be a "landscape architectural intern" and use the term
13 to describe the individual.
14 SECTION 14. IC 25-23.6-5-4, AS AMENDED BY P.L.11-2023,
15 SECTION 81, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
16 JULY 1, 2024]: Sec. 4. (a) As used in this section, "term" refers to
17 an academic semester, trimester, or quarter.
18 (b) An individual who satisfies the requirements of section 1 or 2 of
19 this chapter may take the examination provided by the board.
20 (c) An individual who:
21 (1) is enrolled in the last term of the last year of a program
22 leading to a degree that meets the requirements of section 1(1)
23 of this chapter; and
24 (2) provides a letter of good standing from the director of the
25 social work department or the director's designee;
26 may take the examination provided by the board for a license as a
27 social worker.
28 (d) A letter of good standing provided under subsection (c)(2) by
29 an individual who applies for a license as a social worker must
30 include the following information:
31 (1) The individual's first and last name.
32 (2) The type of degree and program in which the individual is
33 enrolled.
34 (3) A statement confirming that the individual is currently in
35 the final term of the program.
36 (4) The anticipated date of completion of the program.
37 (5) A statement confirming that the individual is in good
38 academic standing.
39 SECTION 15. IC 34-30-2.1-366, AS ADDED BY P.L.105-2022,
40 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
41 JULY 1, 2024]: Sec. 366. IC 25-2.1-9-5 (Concerning immunity of an
42 entity administering a quality review (before July 1, 2012) or peer
HB 1138—LS 6525/DI 141 9
1 review (after June 30, 2012) program and members of a quality review
2 committee (before July 1, 2012) or peer review committee). (after June
3 30, 2012)).
4 SECTION 16. IC 34-46-2-17, AS AMENDED BY P.L.197-2011,
5 SECTION 126, IS AMENDED TO READ AS FOLLOWS
6 [EFFECTIVE JULY 1, 2024]: Sec. 17. IC 25-2.1-5-8 (Concerning
7 proceedings, records, and work papers of a quality review committee
8 that conducts a quality review of an accounting firm before July 1,
9 2012, or a peer review committee that conducts a peer review of an
10 accounting firm). after June 30, 2012).
HB 1138—LS 6525/DI 141 10
COMMITTEE REPORT
Mr. Speaker: Your Committee on Employment, Labor and Pensions,
to which was referred House Bill 1138, has had the same under
consideration and begs leave to report the same back to the House with
the recommendation that said bill be amended as follows:
Page 1, between the enacting clause and line 1, begin a new
paragraph and insert:
"SECTION 1. IC 25-1-11-12, AS AMENDED BY P.L.197-2011,
SECTION 74, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 12. (a) The board may impose any of the
following sanctions, singly or in combination, if the board finds that a
practitioner is subject to disciplinary sanctions under sections 5
through 9 of this chapter:
(1) Permanently revoke a practitioner's license.
(2) Suspend a practitioner's license.
(3) Censure a practitioner.
(4) Issue a letter of reprimand.
(5) Place a practitioner on probation status and require the
practitioner to:
(A) report regularly to the board upon the matters that are the
basis of probation;
(B) limit practice to those areas prescribed by the board;
(C) continue or renew professional education approved by the
board until a satisfactory degree of skill has been attained in
those areas that are the basis of the probation;
(D) perform or refrain from performing any acts, including
community restitution or service without compensation, that
the board considers appropriate to the public interest or to the
rehabilitation or treatment of the practitioner; or
(E) satisfactorily complete a quality review (before July 1,
2012) or peer review (after June 30, 2012) specified by the
board as a condition for termination of probationary status if
the practitioner is a licensee (as defined in IC 25-2.1-1-8).
(6) Assess a civil penalty against the practitioner for not more
than one thousand dollars ($1,000) for each violation listed in
sections 5 through 9 of this chapter except for a finding of
incompetency due to a physical or mental disability.
(7) Order a practitioner to pay consumer restitution to a person
who suffered damages as a result of the conduct or omission that
was the basis for the disciplinary sanctions under this chapter.
(b) When imposing a civil penalty under subsection (a)(6), the board
HB 1138—LS 6525/DI 141 11
shall consider a practitioner's ability to pay the amount assessed. If the
practitioner fails to pay the civil penalty within the time specified by
the board, the board may suspend the practitioner's license without
additional proceedings. However, a suspension may not be imposed if
the sole basis for the suspension is the practitioner's inability to pay a
civil penalty.
(c) The board may withdraw or modify the probation under
subsection (a)(5) if the board finds after a hearing that the deficiency
that required disciplinary action has been remedied or that changed
circumstances warrant a modification of the order.
SECTION 2. IC 25-2.1-1-6.3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 6.3. "Compilation"
means providing a service of any compilation engagement to be
performed in accordance with AICPA Statements on Standards for
Accounting and Review Services (SSARS). or other similar standards
adopted by reference under IC 25-2.1-2-15 that is presenting, in the
form of financial statements, information that is the representation of
the management or owners without undertaking to express any
assurance on the statements.
SECTION 3. IC 25-2.1-1-8.7, AS ADDED BY P.L.197-2011,
SECTION 75, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 8.7. (a) "Peer review" means a study, an appraisal,
or a review of at least one (1) aspect of the professional work of:
(1) an individual who; or
(2) a firm in the practice of accountancy that;
attests or issues compilation reports, by at least one (1) individual who
holds a certificate from any state and possesses qualifications that meet
the applicable substantial equivalency standards and who is
independent of the individual or firm being reviewed. The term
includes any part of a quality review conducted before July 1, 2012,
that becomes part of a peer review conducted or peer review report
issued after June 30, 2012.
(b) After June 30, 2012, any reference in any law, rule, or other
document to "quality review" as that term was applied under this article
before July 1, 2012, shall be treated as a reference to peer review.
SECTION 4. IC 25-2.1-2-15, AS AMENDED BY P.L.197-2011,
SECTION 77, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 15. The board may adopt rules under IC 4-22-2
governing the administration and enforcement of this article and the
conduct of licensees, including the following:
(1) The board's meetings and conduct of business.
(2) The procedure of investigations and hearings.
HB 1138—LS 6525/DI 141 12
(3) The educational and experience qualifications required for the
issuance of certificates under this article and the continuing
professional education required for renewal of certificates under
IC 25-2.1-4.
(4) Rules of professional conduct directed to controlling the
quality and probity of the practice of accountancy by licensees,
including independence, integrity, and objectivity, competence
and technical standards, and responsibilities to the public and
clients.
(5) The actions and circumstances that constitute professing to be
a licensee in connection with the practice of accountancy.
(6) The manner and circumstances of use of the title "certified
public accountant" and the abbreviation "CPA".
(7) Quality reviews (before July 1, 2012) or Peer reviews (after
June 30, 2012) that may be required to be performed under this
article.
(8) Methods of applying for and conducting the examinations,
including methods for grading examinations and determining a
passing grade required of an applicant for a certificate. However,
the board shall to the extent possible provide that the
examination, grading of the examination, and the passing grades
are uniform with those applicable in other states.
(9) Substantial equivalency.
(10) Administration of the accountant investigative fund
established by IC 25-2.1-8-4.
SECTION 5. IC 25-2.1-5-8, AS AMENDED BY P.L.168-2016,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 8. (a) The board shall adopt rules that require as
a condition to renew a permit under this chapter, that an applicant
undergo, not more than once every three (3) years, a peer review
conducted in a manner the board specifies.
(b) The rules adopted under subsection (a) must:
(1) be adopted reasonably in advance of the time when a peer
review first becomes effective;
(2) include reasonable provision for compliance by an applicant
showing that the applicant has in the preceding three (3) years
undergone a peer review that is a satisfactory equivalent to the
peer review required under this section;
(3) require the firm to submit a copy of allow the administering
entity to provide access to the results of its most recently
accepted peer review and other objective information specified
by the rules to the board; either directly or through the
HB 1138—LS 6525/DI 141 13
administering entity;
(4) require, with respect to peer reviews under subdivision (2),
that the peer review be subject to review by an oversight body
committee established or sanctioned by the board that shall:
(A) comply with IC 25-2.1-9-4; and
(B) periodically report to the board on the effectiveness of the
review program and provide to the board a listing of firms that
have participated in a peer review program; and
(5) subject to section 9 of this chapter and IC 25-2.1-9-4, require,
with respect to peer reviews under subdivision (2), that:
(A) the proceedings, records, and work papers of a review
committee are privileged and are not subject to discovery,
subpoena, or other means of legal process or introduction into
evidence in a civil action, arbitration, administrative
proceeding, or Indiana board of accountancy proceeding; and
(B) a member of the review committee or individual who was
involved in the peer review process is not permitted or
required to testify in a civil action, arbitration, administrative
proceeding, or board proceeding to matters:
(i) produced, presented, disclosed or discussed during, or in
connection with, the peer review process; or
(ii) that involve findings, recommendations, evaluations,
opinions, or other actions of the committee or a committee
member.
SECTION 6. IC 25-2.1-8-2, AS AMENDED BY P.L.197-2011,
SECTION 81, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 2. In place of or in addition to any remedy
specifically provided in IC 25-1-11, the board may require the
following of a licensee:
(1) To undergo a quality review (before July 1, 2012) or a peer
review. (after June 30, 2012).
(2) To satisfactorily complete continuing professional education
programs.
SECTION 7. IC 25-2.1-9-4, AS ADDED BY P.L.197-2011,
SECTION 83, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 4. (a) This section applies to a licensee that
receives a peer review rating of fail on a peer review report issued after
June 30, 2012, for a peer review conducted under IC 25-2.1-5-8.
(b) The following definitions apply throughout this section:
(1) "Administering entity" refers to the oversight body established
or sanctioned by the board to conduct a peer review program.
(2) "Director" refers to the director of the division of consumer
HB 1138—LS 6525/DI 141 14
protection in the office of the attorney general.
(3) "Oversight committee" refers to a committee of licensees who
are not board members that is designated by the board to receive
a report. the results of a peer review.
(4) "Report" refers to a peer review report described in subsection
(a), including any description of the deficiencies on which the
peer review rating of fail is based.
(c) The board shall provide the director with the name and contact
information for the administering entity.
(d) Not more than thirty (30) days after the issuance of a report, the
administering entity shall make the report available to the oversight
committee. The oversight committee may forward the report results of
a peer review to the director. Receipt of the report shall results may
be treated under IC 25-1-7-4, IC 25-1-7-5, and IC 25-1-7-6 as a
complaint submitted by the board. If, after conducting an investigation,
the director believes that a licensee should be subjected to disciplinary
sanctions by the board, the director shall report the director's
determination to the attorney general. Upon receiving the director's
report, the attorney general may prosecute the matter, on behalf of the
state of Indiana, before the board. IC 25-1-7-7(b) does not apply to a
determination related to a complaint filed under this section.
(e) The administering entity and the peer review committee issuing
a report shall cooperate with an investigation under IC 25-1-7 of a
complaint filed under this section. and with any resulting proceeding,
including compliance with any request for access to or production of
the proceedings, records, and work papers of the review committee by
the director, the office of the attorney general, or a party to any
proceeding initiated as a result of the filing of a complaint under this
section. However, all complaints and information pertaining to a
complaint are confidential until the attorney general files notice with
the board of the attorney general's intent to prosecute a licensee under
IC 25-1-7-7. Any meeting of the board, the oversight committee, or a
designee of the board or oversight committee that is required in an
investigation conducted before the attorney general files notice of
intent to prosecute shall be conducted as an executive session under
IC 5-14-1.5-6.1.
SECTION 8. IC 25-2.1-9-5, AS ADDED BY P.L.197-2011,
SECTION 84, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 5. An:
(1) entity administering a quality review program before July 1,
2012, or a peer review program; after June 30, 2012;
(2) officer, member, or employee of an entity administering a
HB 1138—LS 6525/DI 141 15
quality review program before July 1, 2012, or a peer review
program; after June 30, 2012;
(3) employee or member of a quality review committee before
July 1, 2012, or a peer review committee; after June 30, 2012; and
(4) entity in which or for which a member of a quality review
committee (before July 1, 2012) or peer review committee (after
June 30, 2012) is a sole proprietor, a partner, a shareholder, a
member, or an employee;
is immune from civil liability that would otherwise arise from
communications, supervision, findings, recommendations, evaluations,
reports, opinions, or other actions taken or omissions occurring in good
faith in the course and scope of the duties of a quality review
administering entity (before July 1, 2012) or peer review administering
entity (after June 30, 2012) or a quality review committee (before July
1, 2012) or peer review committee (after June 30, 2012) that arise
under this article, including the rules adopted by the board. The
immunity granted under this section includes immunity for an act or
omission related to any part of a quality review conducted under this
article before July 1, 2012, that becomes part of a peer review
conducted or peer review report issued after June 30, 2012.
SECTION 9. IC 25-2.1-11-2, AS AMENDED BY P.L.197-2011,
SECTION 85, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 2. Before reinstating a suspended certificate or
permit under IC 25-1-11-14, the board may require the applicant to
show successful completion of specified continuing professional
education or other actions, and the board may make the reinstatement
of a certificate or permit conditional on satisfactory completion of a
quality review (before July 1, 2012) or peer review (after June 30,
2012) specified by the board.
SECTION 10. IC 25-2.1-14-2, AS AMENDED BY P.L.197-2011,
SECTION 86, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 2. The information derived from or as the result
of professional services is confidential and privileged. However, this
section does not prohibit a certified public accountant, a public
accountant, or an accounting practitioner from disclosing any data
required to be disclosed by the standards of the profession:
(1) in rendering an opinion on the presentation of financial
statements;
(2) in ethical investigations conducted by private professional
organizations;
(3) in the course of quality reviews (before July 1, 2012) or peer
reviews (after June 30, 2012) or an investigation or proceeding
HB 1138—LS 6525/DI 141 16
related to a quality review (before July 1, 2012) or peer review;
(after June 30, 2012); or
(4) in making disclosure where the financial statements or the
professional services of an accountant are contested.
SECTION 11. IC 25-2.1-14-5, AS AMENDED BY P.L.197-2011,
SECTION 88, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 5. (a) This chapter does not prohibit a temporary
transfer of work papers or other material necessary to carry out quality
reviews (before July 1, 2012) or peer reviews, (after June 30, 2012),
conduct an investigation or proceeding related to a quality review
(before July 1, 2012) or peer review, (after June 30, 2012), or comply
with the disclosure of information under this chapter.
(b) A licensee is not required to keep any work paper beyond the
period prescribed in any applicable statute.
SECTION 12. IC 25-4-1-18.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2024]: Sec. 18.5. (a) An individual who has
graduated from a school or college of architecture accredited by
the National Architectural Accrediting Board, Inc., or its successor
may profess to be an "architectural graduate" and use the term to
describe the individual.
(b) An individual currently enrolled in, but not yet graduated
from, a school or college of architecture accredited by the National
Architectural Accrediting Board, Inc., or its successor may profess
to be an "architectural intern" and use the term to describe the
individual.
SECTION 13. IC 25-4-2-10.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2024]: Sec. 10.5. (a) An individual who has
graduated from an accredited curriculum of landscape
architecture presented by a college or school approved by the
board may profess to be a "landscape architectural graduate" and
use the term to describe the individual.
(b) An individual currently enrolled in, but not yet graduated
from, an accredited curriculum of landscape architecture
presented by a college or school approved by the board may
profess to be a "landscape architectural intern" and use the term
to describe the individual.".
Page 2, after line 8, begin a new paragraph and insert:
"SECTION 15. IC 34-30-2.1-366, AS ADDED BY P.L.105-2022,
SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 366. IC 25-2.1-9-5 (Concerning immunity of an
HB 1138—LS 6525/DI 141 17
entity administering a quality review (before July 1, 2012) or peer
review (after June 30, 2012) program and members of a quality review
committee (before July 1, 2012) or peer review committee). (after June
30, 2012)).
SECTION 16. IC 34-46-2-17, AS AMENDED BY P.L.197-2011,
SECTION 126, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2024]: Sec. 17. IC 25-2.1-5-8 (Concerning
proceedings, records, and work papers of a quality review committee
that conducts a quality review of an accounting firm before July 1,
2012, or a peer review committee that conducts a peer review of an
accounting firm). after June 30, 2012).".
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to HB 1138 as introduced.)
VANNATTER
Committee Vote: yeas 9, nays 0.
HB 1138—LS 6525/DI 141