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Indiana House Bill HB1348

Indiana 2024 Regular Session

Indiana House Bill HB1348 Compare Versions

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11
22 Introduced Version
33 HOUSE BILL No. 1348
44 _____
55 DIGEST OF INTRODUCED BILL
66 Citations Affected: IC 25-1-11-12; IC 25-2.1; IC 25-4;
77 IC 34-30-2.1-366; IC 34-46-2-17.
88 Synopsis: Professional licensing matters. Removes references to a
99 quality review in provisions relating to the licensing of accountants.
1010 Requires the Indiana board of accountancy (board) to adopt rules
1111 requiring the firm to allow the administering entity to provide access
1212 to the results of its most recently accepted peer review and other
1313 objective information to the board. Removes language requiring the
1414 administering entity to make a peer review report available to the
1515 oversight committee not more than 30 days after the issuance of the
1616 peer review report. Provides that the results of a peer review may be
1717 treated as a complaint submitted by the board. Removes language
1818 requiring the peer review committee issuing a report to cooperate with
1919 an investigation of a complaint. Allows the use of certain titles by an
2020 individual who is enrolled in or has graduated from a school or college
2121 of architecture or an accredited curriculum of landscape architecture.
2222 Effective: July 1, 2024.
2323 VanNatter
2424 January 10, 2024, read first time and referred to Committee on Employment, Labor and
2525 Pensions.
2626 2024 IN 1348—LS 6699/DI 141 Introduced
2727 Second Regular Session of the 123rd General Assembly (2024)
2828 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
2929 Constitution) is being amended, the text of the existing provision will appear in this style type,
3030 additions will appear in this style type, and deletions will appear in this style type.
3131 Additions: Whenever a new statutory provision is being enacted (or a new constitutional
3232 provision adopted), the text of the new provision will appear in this style type. Also, the
3333 word NEW will appear in that style type in the introductory clause of each SECTION that adds
3434 a new provision to the Indiana Code or the Indiana Constitution.
3535 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
3636 between statutes enacted by the 2023 Regular Session of the General Assembly.
3737 HOUSE BILL No. 1348
3838 A BILL FOR AN ACT to amend the Indiana Code concerning
3939 professions and occupations.
4040 Be it enacted by the General Assembly of the State of Indiana:
4141 1 SECTION 1. IC 25-1-11-12, AS AMENDED BY P.L.197-2011,
4242 2 SECTION 74, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4343 3 JULY 1, 2024]: Sec. 12. (a) The board may impose any of the
4444 4 following sanctions, singly or in combination, if the board finds that a
4545 5 practitioner is subject to disciplinary sanctions under sections 5
4646 6 through 9 of this chapter:
4747 7 (1) Permanently revoke a practitioner's license.
4848 8 (2) Suspend a practitioner's license.
4949 9 (3) Censure a practitioner.
5050 10 (4) Issue a letter of reprimand.
5151 11 (5) Place a practitioner on probation status and require the
5252 12 practitioner to:
5353 13 (A) report regularly to the board upon the matters that are the
5454 14 basis of probation;
5555 15 (B) limit practice to those areas prescribed by the board;
5656 16 (C) continue or renew professional education approved by the
5757 17 board until a satisfactory degree of skill has been attained in
5858 2024 IN 1348—LS 6699/DI 141 2
5959 1 those areas that are the basis of the probation;
6060 2 (D) perform or refrain from performing any acts, including
6161 3 community restitution or service without compensation, that
6262 4 the board considers appropriate to the public interest or to the
6363 5 rehabilitation or treatment of the practitioner; or
6464 6 (E) satisfactorily complete a quality review (before July 1,
6565 7 2012) or peer review (after June 30, 2012) specified by the
6666 8 board as a condition for termination of probationary status if
6767 9 the practitioner is a licensee (as defined in IC 25-2.1-1-8).
6868 10 (6) Assess a civil penalty against the practitioner for not more
6969 11 than one thousand dollars ($1,000) for each violation listed in
7070 12 sections 5 through 9 of this chapter except for a finding of
7171 13 incompetency due to a physical or mental disability.
7272 14 (7) Order a practitioner to pay consumer restitution to a person
7373 15 who suffered damages as a result of the conduct or omission that
7474 16 was the basis for the disciplinary sanctions under this chapter.
7575 17 (b) When imposing a civil penalty under subsection (a)(6), the board
7676 18 shall consider a practitioner's ability to pay the amount assessed. If the
7777 19 practitioner fails to pay the civil penalty within the time specified by
7878 20 the board, the board may suspend the practitioner's license without
7979 21 additional proceedings. However, a suspension may not be imposed if
8080 22 the sole basis for the suspension is the practitioner's inability to pay a
8181 23 civil penalty.
8282 24 (c) The board may withdraw or modify the probation under
8383 25 subsection (a)(5) if the board finds after a hearing that the deficiency
8484 26 that required disciplinary action has been remedied or that changed
8585 27 circumstances warrant a modification of the order.
8686 28 SECTION 2. IC 25-2.1-1-6.3 IS AMENDED TO READ AS
8787 29 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 6.3. "Compilation"
8888 30 means providing a service of any compilation engagement to be
8989 31 performed in accordance with AICPA Statements on Standards for
9090 32 Accounting and Review Services (SSARS). or other similar standards
9191 33 adopted by reference under IC 25-2.1-2-15 that is presenting, in the
9292 34 form of financial statements, information that is the representation of
9393 35 the management or owners without undertaking to express any
9494 36 assurance on the statements.
9595 37 SECTION 3. IC 25-2.1-1-8.7, AS ADDED BY P.L.197-2011,
9696 38 SECTION 75, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
9797 39 JULY 1, 2024]: Sec. 8.7. (a) "Peer review" means a study, an appraisal,
9898 40 or a review of at least one (1) aspect of the professional work of:
9999 41 (1) an individual who; or
100100 42 (2) a firm in the practice of accountancy that;
101101 2024 IN 1348—LS 6699/DI 141 3
102102 1 attests or issues compilation reports, by at least one (1) individual who
103103 2 holds a certificate from any state and possesses qualifications that meet
104104 3 the applicable substantial equivalency standards and who is
105105 4 independent of the individual or firm being reviewed. The term
106106 5 includes any part of a quality review conducted before July 1, 2012,
107107 6 that becomes part of a peer review conducted or peer review report
108108 7 issued after June 30, 2012.
109109 8 (b) After June 30, 2012, any reference in any law, rule, or other
110110 9 document to "quality review" as that term was applied under this article
111111 10 before July 1, 2012, shall be treated as a reference to peer review.
112112 11 SECTION 4. IC 25-2.1-2-15, AS AMENDED BY P.L.197-2011,
113113 12 SECTION 77, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
114114 13 JULY 1, 2024]: Sec. 15. The board may adopt rules under IC 4-22-2
115115 14 governing the administration and enforcement of this article and the
116116 15 conduct of licensees, including the following:
117117 16 (1) The board's meetings and conduct of business.
118118 17 (2) The procedure of investigations and hearings.
119119 18 (3) The educational and experience qualifications required for the
120120 19 issuance of certificates under this article and the continuing
121121 20 professional education required for renewal of certificates under
122122 21 IC 25-2.1-4.
123123 22 (4) Rules of professional conduct directed to controlling the
124124 23 quality and probity of the practice of accountancy by licensees,
125125 24 including independence, integrity, and objectivity, competence
126126 25 and technical standards, and responsibilities to the public and
127127 26 clients.
128128 27 (5) The actions and circumstances that constitute professing to be
129129 28 a licensee in connection with the practice of accountancy.
130130 29 (6) The manner and circumstances of use of the title "certified
131131 30 public accountant" and the abbreviation "CPA".
132132 31 (7) Quality reviews (before July 1, 2012) or Peer reviews (after
133133 32 June 30, 2012) that may be required to be performed under this
134134 33 article.
135135 34 (8) Methods of applying for and conducting the examinations,
136136 35 including methods for grading examinations and determining a
137137 36 passing grade required of an applicant for a certificate. However,
138138 37 the board shall to the extent possible provide that the
139139 38 examination, grading of the examination, and the passing grades
140140 39 are uniform with those applicable in other states.
141141 40 (9) Substantial equivalency.
142142 41 (10) Administration of the accountant investigative fund
143143 42 established by IC 25-2.1-8-4.
144144 2024 IN 1348—LS 6699/DI 141 4
145145 1 SECTION 5. IC 25-2.1-5-8, AS AMENDED BY P.L.168-2016,
146146 2 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
147147 3 JULY 1, 2024]: Sec. 8. (a) The board shall adopt rules that require as
148148 4 a condition to renew a permit under this chapter, that an applicant
149149 5 undergo, not more than once every three (3) years, a peer review
150150 6 conducted in a manner the board specifies.
151151 7 (b) The rules adopted under subsection (a) must:
152152 8 (1) be adopted reasonably in advance of the time when a peer
153153 9 review first becomes effective;
154154 10 (2) include reasonable provision for compliance by an applicant
155155 11 showing that the applicant has in the preceding three (3) years
156156 12 undergone a peer review that is a satisfactory equivalent to the
157157 13 peer review required under this section;
158158 14 (3) require the firm to submit a copy of allow the administering
159159 15 entity to provide access to the results of its most recently
160160 16 accepted peer review and other objective information specified
161161 17 by the rules to the board; either directly or through the
162162 18 administering entity;
163163 19 (4) require, with respect to peer reviews under subdivision (2),
164164 20 that the peer review be subject to review by an oversight body
165165 21 committee established or sanctioned by the board that shall:
166166 22 (A) comply with IC 25-2.1-9-4; and
167167 23 (B) periodically report to the board on the effectiveness of the
168168 24 review program and provide to the board a listing of firms that
169169 25 have participated in a peer review program; and
170170 26 (5) subject to section 9 of this chapter and IC 25-2.1-9-4, require,
171171 27 with respect to peer reviews under subdivision (2), that:
172172 28 (A) the proceedings, records, and work papers of a review
173173 29 committee are privileged and are not subject to discovery,
174174 30 subpoena, or other means of legal process or introduction into
175175 31 evidence in a civil action, arbitration, administrative
176176 32 proceeding, or Indiana board of accountancy proceeding; and
177177 33 (B) a member of the review committee or individual who was
178178 34 involved in the peer review process is not permitted or
179179 35 required to testify in a civil action, arbitration, administrative
180180 36 proceeding, or board proceeding to matters:
181181 37 (i) produced, presented, disclosed or discussed during, or in
182182 38 connection with, the peer review process; or
183183 39 (ii) that involve findings, recommendations, evaluations,
184184 40 opinions, or other actions of the committee or a committee
185185 41 member.
186186 42 SECTION 6. IC 25-2.1-8-2, AS AMENDED BY P.L.197-2011,
187187 2024 IN 1348—LS 6699/DI 141 5
188188 1 SECTION 81, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
189189 2 JULY 1, 2024]: Sec. 2. In place of or in addition to any remedy
190190 3 specifically provided in IC 25-1-11, the board may require the
191191 4 following of a licensee:
192192 5 (1) To undergo a quality review (before July 1, 2012) or a peer
193193 6 review. (after June 30, 2012).
194194 7 (2) To satisfactorily complete continuing professional education
195195 8 programs.
196196 9 SECTION 7. IC 25-2.1-9-4, AS ADDED BY P.L.197-2011,
197197 10 SECTION 83, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
198198 11 JULY 1, 2024]: Sec. 4. (a) This section applies to a licensee that
199199 12 receives a peer review rating of fail on a peer review report issued after
200200 13 June 30, 2012, for a peer review conducted under IC 25-2.1-5-8.
201201 14 (b) The following definitions apply throughout this section:
202202 15 (1) "Administering entity" refers to the oversight body established
203203 16 or sanctioned by the board to conduct a peer review program.
204204 17 (2) "Director" refers to the director of the division of consumer
205205 18 protection in the office of the attorney general.
206206 19 (3) "Oversight committee" refers to a committee of licensees who
207207 20 are not board members that is designated by the board to receive
208208 21 a report. the results of a peer review.
209209 22 (4) "Report" refers to a peer review report described in subsection
210210 23 (a), including any description of the deficiencies on which the
211211 24 peer review rating of fail is based.
212212 25 (c) The board shall provide the director with the name and contact
213213 26 information for the administering entity.
214214 27 (d) Not more than thirty (30) days after the issuance of a report, the
215215 28 administering entity shall make the report available to the oversight
216216 29 committee. The oversight committee may forward the report results of
217217 30 a peer review to the director. Receipt of the report shall results may
218218 31 be treated under IC 25-1-7-4, IC 25-1-7-5, and IC 25-1-7-6 as a
219219 32 complaint submitted by the board. If, after conducting an investigation,
220220 33 the director believes that a licensee should be subjected to disciplinary
221221 34 sanctions by the board, the director shall report the director's
222222 35 determination to the attorney general. Upon receiving the director's
223223 36 report, the attorney general may prosecute the matter, on behalf of the
224224 37 state of Indiana, before the board. IC 25-1-7-7(b) does not apply to a
225225 38 determination related to a complaint filed under this section.
226226 39 (e) The administering entity and the peer review committee issuing
227227 40 a report shall cooperate with an investigation under IC 25-1-7 of a
228228 41 complaint filed under this section. and with any resulting proceeding,
229229 42 including compliance with any request for access to or production of
230230 2024 IN 1348—LS 6699/DI 141 6
231231 1 the proceedings, records, and work papers of the review committee by
232232 2 the director, the office of the attorney general, or a party to any
233233 3 proceeding initiated as a result of the filing of a complaint under this
234234 4 section. However, all complaints and information pertaining to a
235235 5 complaint are confidential until the attorney general files notice with
236236 6 the board of the attorney general's intent to prosecute a licensee under
237237 7 IC 25-1-7-7. Any meeting of the board, the oversight committee, or a
238238 8 designee of the board or oversight committee that is required in an
239239 9 investigation conducted before the attorney general files notice of
240240 10 intent to prosecute shall be conducted as an executive session under
241241 11 IC 5-14-1.5-6.1.
242242 12 SECTION 8. IC 25-2.1-9-5, AS ADDED BY P.L.197-2011,
243243 13 SECTION 84, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
244244 14 JULY 1, 2024]: Sec. 5. An:
245245 15 (1) entity administering a quality review program before July 1,
246246 16 2012, or a peer review program; after June 30, 2012;
247247 17 (2) officer, member, or employee of an entity administering a
248248 18 quality review program before July 1, 2012, or a peer review
249249 19 program; after June 30, 2012;
250250 20 (3) employee or member of a quality review committee before
251251 21 July 1, 2012, or a peer review committee; after June 30, 2012; and
252252 22 (4) entity in which or for which a member of a quality review
253253 23 committee (before July 1, 2012) or peer review committee (after
254254 24 June 30, 2012) is a sole proprietor, a partner, a shareholder, a
255255 25 member, or an employee;
256256 26 is immune from civil liability that would otherwise arise from
257257 27 communications, supervision, findings, recommendations, evaluations,
258258 28 reports, opinions, or other actions taken or omissions occurring in good
259259 29 faith in the course and scope of the duties of a quality review
260260 30 administering entity (before July 1, 2012) or peer review administering
261261 31 entity (after June 30, 2012) or a quality review committee (before July
262262 32 1, 2012) or peer review committee (after June 30, 2012) that arise
263263 33 under this article, including the rules adopted by the board. The
264264 34 immunity granted under this section includes immunity for an act or
265265 35 omission related to any part of a quality review conducted under this
266266 36 article before July 1, 2012, that becomes part of a peer review
267267 37 conducted or peer review report issued after June 30, 2012.
268268 38 SECTION 9. IC 25-2.1-11-2, AS AMENDED BY P.L.197-2011,
269269 39 SECTION 85, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
270270 40 JULY 1, 2024]: Sec. 2. Before reinstating a suspended certificate or
271271 41 permit under IC 25-1-11-14, the board may require the applicant to
272272 42 show successful completion of specified continuing professional
273273 2024 IN 1348—LS 6699/DI 141 7
274274 1 education or other actions, and the board may make the reinstatement
275275 2 of a certificate or permit conditional on satisfactory completion of a
276276 3 quality review (before July 1, 2012) or peer review (after June 30,
277277 4 2012) specified by the board.
278278 5 SECTION 10. IC 25-2.1-14-2, AS AMENDED BY P.L.197-2011,
279279 6 SECTION 86, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
280280 7 JULY 1, 2024]: Sec. 2. The information derived from or as the result
281281 8 of professional services is confidential and privileged. However, this
282282 9 section does not prohibit a certified public accountant, a public
283283 10 accountant, or an accounting practitioner from disclosing any data
284284 11 required to be disclosed by the standards of the profession:
285285 12 (1) in rendering an opinion on the presentation of financial
286286 13 statements;
287287 14 (2) in ethical investigations conducted by private professional
288288 15 organizations;
289289 16 (3) in the course of quality reviews (before July 1, 2012) or peer
290290 17 reviews (after June 30, 2012) or an investigation or proceeding
291291 18 related to a quality review (before July 1, 2012) or peer review;
292292 19 (after June 30, 2012); or
293293 20 (4) in making disclosure where the financial statements or the
294294 21 professional services of an accountant are contested.
295295 22 SECTION 11. IC 25-2.1-14-5, AS AMENDED BY P.L.197-2011,
296296 23 SECTION 88, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
297297 24 JULY 1, 2024]: Sec. 5. (a) This chapter does not prohibit a temporary
298298 25 transfer of work papers or other material necessary to carry out quality
299299 26 reviews (before July 1, 2012) or peer reviews, (after June 30, 2012),
300300 27 conduct an investigation or proceeding related to a quality review
301301 28 (before July 1, 2012) or peer review, (after June 30, 2012), or comply
302302 29 with the disclosure of information under this chapter.
303303 30 (b) A licensee is not required to keep any work paper beyond the
304304 31 period prescribed in any applicable statute.
305305 32 SECTION 12. IC 25-4-1-18.5 IS ADDED TO THE INDIANA
306306 33 CODE AS A NEW SECTION TO READ AS FOLLOWS
307307 34 [EFFECTIVE JULY 1, 2024]: Sec. 18.5. (a) An individual who has
308308 35 graduated from a school or college of architecture accredited by
309309 36 the National Architectural Accrediting Board, Inc., or its successor
310310 37 may profess to be an "architectural graduate" and use the term to
311311 38 describe the individual.
312312 39 (b) An individual currently enrolled in, but not yet graduated
313313 40 from, a school or college of architecture accredited by the National
314314 41 Architectural Accrediting Board, Inc., or its successor may profess
315315 42 to be an "architectural intern" and use the term to describe the
316316 2024 IN 1348—LS 6699/DI 141 8
317317 1 individual.
318318 2 SECTION 13. IC 25-4-2-10.5 IS ADDED TO THE INDIANA
319319 3 CODE AS A NEW SECTION TO READ AS FOLLOWS
320320 4 [EFFECTIVE JULY 1, 2024]: Sec. 10.5. (a) An individual who has
321321 5 graduated from an accredited curriculum of landscape
322322 6 architecture presented by a college or school approved by the
323323 7 board may profess to be a "landscape architectural graduate" and
324324 8 use the term to describe the individual.
325325 9 (b) An individual currently enrolled in, but not yet graduated
326326 10 from, an accredited curriculum of landscape architecture
327327 11 presented by a college or school approved by the board may
328328 12 profess to be a "landscape architectural intern" and use the term
329329 13 to describe the individual.
330330 14 SECTION 14. IC 34-30-2.1-366, AS ADDED BY P.L.105-2022,
331331 15 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
332332 16 JULY 1, 2024]: Sec. 366. IC 25-2.1-9-5 (Concerning immunity of an
333333 17 entity administering a quality review (before July 1, 2012) or peer
334334 18 review (after June 30, 2012) program and members of a quality review
335335 19 committee (before July 1, 2012) or peer review committee). (after June
336336 20 30, 2012)).
337337 21 SECTION 15. IC 34-46-2-17, AS AMENDED BY P.L.197-2011,
338338 22 SECTION 126, IS AMENDED TO READ AS FOLLOWS
339339 23 [EFFECTIVE JULY 1, 2024]: Sec. 17. IC 25-2.1-5-8 (Concerning
340340 24 proceedings, records, and work papers of a quality review committee
341341 25 that conducts a quality review of an accounting firm before July 1,
342342 26 2012, or a peer review committee that conducts a peer review of an
343343 27 accounting firm). after June 30, 2012).
344344 2024 IN 1348—LS 6699/DI 141