public accountant. No natural person sha public as being engaged in the practice of p accountant in the District of Columbia, un of a certificate of certified public accounta endorsement of certificate of certified publi 6 and 8 of this Act.

(b) No partnership shall assume or use th accountants" or the abbreviation "C.P.A.'s' letters, abbreviations, sign, or device tendin composed of certified public accountants, u a partnership of certified public accountants (c) No corporation shall assume or use the accountant" or the abbreviation "C.P.A." o letters, abbreviations, sign, card, or device t tion is licensed as a certified public accou "certified public accountant" or "C.P.A."

(d) Nothing in this Act shall be construed or corporation from practicing public accour Provided, That such person, partnership, title of "certified public accountant", or the titles, designations, or abbreviations likely accountant" or "C.P.A."

SEC. 4. (a) The Commissioners are her establish a Board of Accountancy, composed the District of Columbia, to serve as their ag Accountancy any of the technical and profe missioners by this Act. Each of the membe be registered in accordance with the provisi the time of appointment to the Board, shall public accountancy as a certified public acco ten years, at least five years of which shall ha The length of terms for Board members shall shall have the authority to determine from ti tion to be paid Board members.

The Commissioners may remove any mem neglect of duty or for other sufficient cause.

(b) The Commissioners are authorized to the District of Columbia government any housekeeping functions vested in the Commi

SEC. 5. The Commissioners are authorize rules and regulations as may be necessary to including, but not limited to, rules of pro denial, suspension, or revocation of any cert applied for or issued under this Act.

The recommendations to the Commissioners con and regulations. No such rules or regulatio Commissioners shall have held a public heari

SEC. 6. (a) The Commissioners are author public accountant of the District of Columbi Commissioners satisfactory proof that he ha

(1) is at least twenty-one years of age (2) is a citizen of the United States becoming such citizen;

(3) has actually and continuously resi District of Columbia or has been regu Columbia on a continuous full-time bas year immediately prior to the date of fili an employee of a certified public accou countants registered to practice in the Di fide resident of a foreign country for a per immediately preceding the date of filing to be examined and to receive a certifica the State of last residence solely because (4) has had the education and experien (5) has successfully completed an exa related subjects as prescribed by the Co (6) is of good moral character; and (7) has paid all required fees.

I

(b) Applications for certificate of certified public accountant by examination approved prior to the effective date of this Act by the Board of Accountancy for the District of Columbia, created under prior law, shall be regarded as applications filed under this Act, and the terms and conditions governing carryover credits for having passed a part of the examination in effect at the effective date of this Act, shall control with respect to such applications.

(c) A person who held a certificate of certified public accountant issued under the laws of the District of Columbia on the effective date of this Act, shall not be required to obtain an additional certificate under this Act, but shall otherwise be subject to all the provisions of this Act and such certificate shall, for all purposes, be considered a certificate issued under this Act and subject to the provisions hereof. The holder of a certificate of certified public accountant which is in full force and effect, shall be styled and known as a certified public accountant and may also use the abbreviation "C.P.A."

SEC. 7. (a) Effective upon enactment of this Act and for one year thereafter the educational and experience requirements shall be

(1) completion of a four-year course of study at an approved high school or the equivalent of such a course of study;

(2) completion of a resident course of study satisfactory to the Commissioners at an institution, junior college, or school of accountancy, or combination thereof, of not less than sixty semester hours of which a minimum of thirty semester hours shall have been in accounting theory and practice, in auditing, and in commercial law as affecting accountancy, and the remainder of the semester hours shall have been in subjects satisfactory to the Commissioners;

(3) not less than one year's experience satisfactory to the Commissioners in the full-time employment of a certified public accountant of the District of Columbia or of any State or territory of the United States, regularly engaged in the full-time public practice of his profession as a certified public accountant, or in the full-time employment of a firm of certified public accountants all the partners of which are certified public accountants of the District of Columbia or of some other State or territory of the United States, and said firm is regularly engaged in the full-time public practice as certified public accountants.

(b) Effective one year from the date of enactment of this Act, the educational and experience requirements shall be

(1) (A) completion of a four-year course of study at an approved high school, or the equivalent of such a course of study;

(B) completion of a resident course of study satisfactory to the Commissioners at an institution, junior college, or school of accountancy, or combination thereof, of not less than sixty semester hours of which a minimum of thirty semester hours shall have been in accounting theory and practice, in auditing, and in commercial law as affecting accountancy and the remainder of the semester hours shall have been in subjects satisfactory to the Commissioners; and

(C) not less than four years' experience satisfactory to the Commissioners in the full-time employment of a certified public accountant of the District of Columbia or of some other State or territory of the United States regularly engaged in the full-time public practice of his profession as a certified public accountant or in the full-time employment of a firm of certified public accountants, all the partners of which are certified public accountants of the District of Columbia or of some other State or territory of the United States, and said firm is regularly engaged in the full-time public practice as certified public accountants; or

(2)(A) completion of a four-year course of study at an approved high school or the equivalent of such a course of study;

(B) completion of a resident course of study satisfactory to the Commissioners at an institution, junior college, or school of accountancy, or combination thereof, of not less than ninety semester hours of which a minimum of thirty semester hours shall have been in accounting theory and practice, in auditing, and in commercial law as affecting accountancy, and the remainder of the semester hours shall have been in subjects satisfactory to the Commissioners; and

(C) not less than three years' experience satisfactory to the Commissioners in the full-time employment of a certified public accountant of the District of Columbia or of some other State or territory of the United States regularly engaged in the full-time public practice of his profession as a certified public

accountant or in the full-time employme countants, all the partners of which are District of Columbia or of any State or said firm is regularly engaged in the fu public accountants; or

(3) (A) completion of a four-year cou school or the equivalent of such a course

(B) completion of a resident course of sioners at an institution, junior college, or tion thereof, of not less than one hundred a minimum of thirty semester hours shall practice, in auditing, and in commercial la remainder of the semester hours shall have Commissioners; and

(C) not less than two years' experience in the full-time employment of a certified Columbia or of some other State or terri engaged in the full-time public practice o accountant or in the full-time employme countants all the partners of which are District of Columbia or of some other Sta and said firm is regularly engaged in the public accountants.

(c) The Commissioners may, upon unanimo Accountancy, accept for any required year of ment as set forth in subsections (b) (1) (C), (b) ( one and one-half years of actual and continu auditing the books and accounts of other perso commercial business in accordance with genera (2) in reviewing financial statements and financial condition and operations of private reliability and fairness of the financial report accepted accounting principles and applicabl protection of investors and consumers: Provi public accountant employment during the tr section (a)(3) of this section, five years of a provided above in this subsection (c) may subsection shall be interpreted as precluding c ence for recognition under this subsection.

In general, the educational and experience r shall be those in effect on the final date for acce tion for which the applicant first sits, but the tions to the general rule in order to prevent hardship to applicants resulting from changes requirements.

SEC. 8. (a) The Commissioners may, in thei specified in section 6 of this Act and may iss certified public accountant, renewable biennia

(1) is a certified public accountant of States, or who is the holder of a certificat the equivalent thereof, issued in any fore ments for such certificate are, in the opini to those herein required; and

(2) meets the qualifications specified in subsection (a) of section 6 of this Act: P who is a certified public accountant in go shall not be required to meet more ext qualifications than those required by the D such applicant was granted his certificat such State or territory; and

(3) declares his intention under oath of employed in an office in the District of Co in the full-time public practice of his profes of the District of Columbia.

(b) The holder of endorsement of certificat full force and effect, shall have all of the privil certified public accountant issued under sectio to all of the provisions of the Act.

SEC. 9. Every certified public accountant engaged in or who proposes to engage in the public practice of his profession as a certified public accountant in the District of Columbia, is hereby required to register biennially with the Commissioners. A certified public accountant employed by another certified public accountant registered under this section or by a partnership of certified public accountants registered under section 10 of this Act, shall be regarded as a certified public accountant engaged in public practice and shall be required to register. Failure of a certified public accountant or registrant to apply for such original or renewal registration shall deprive him of the right to engage in or continue to engage in the public practice of his profession as a certified public accountant unless and until he subsequently applies for and obtains such registration.

SEC. 10. (a) A partnership which maintains an office within and engages in the full-time practice of public accountancy or a partnership which may thereafter wish to practice as such in the District of Columbia, may apply for registration, renewable biennially, with the Commissioners as a partnership of certified public accountants, provided it meet all of the following requirements:

(1) each partner thereof is a certified public accountant in good standing of the District of Columbia or of some State or territory;

(2) at least one partner or the resident manager thereof is a certified public accountant of the District of Columbia engaged in the full-time practice of public accountancy in the District of Columbia; and

(3) each partner thereof engaged in public practice as a certified public accountant in the District of Columbia is a certified public accountant of the District of Columbia.

(b) A registered partnership of certified public accountants, and only such partnership may use the title "Certified Public Accountants" and the abbreviation "C.P.A.'s" in connection with the partnership name in the District of Columbia. SEC. 11. After notice by registered mail and reasonable opportunity for a hearing, the Commissioners are authorized and empowered to revoke, or suspend for not more than three years, any certificate, endorsement, or registration issued by the Commissioners in accordance with the provisions of this Act, or to refuse to grant or renew, any certificate, endorsement, or registration applied for in accordance with the provisions of this Act, or may censure the holder thereof if the applicant or holder thereof violates the rules of professional conduct or other rules and regulations adopted pursuant to this Act, or for other sufficient cause: Provided, That said denial, suspension, or revocation shall be made only upon specific charges in writing. A certified copy of any such charge and at least twenty days' notice of the hearing of the same, shall be served upon the holder of or applicant for such certificate, endorsement, or registration.

SEC. 12. The Commissioners are hereby authorized and empowered in connection with any hearing conducted pursuant to authority contained in section 11 of this Act, to subpena any necessary witnesses, books, papers, records, and docu

ments.

SEC. 13. After notice and hearing are provided for in section 11 of this Act, the Commissioners may revoke or suspend the registration of a partnership or may censure a registered partnership for any of the causes described in section 11 of this Act, or for any of the following additional causes:

(1) failure to maintain the qualifications prescribed by section 10 of this Act;

(2) the revocation or suspension by the Commissioners of the certificate or endorsement of a certificate of certified public accountant of any partner; or (3) the cancellation, revocation, suspension, or refusal to renew the authority of the partnership or any partner thereof to practice public accountancy in any State or territory.

SEC. 14. The Commissioners shall adopt and prescribe administrative procedures for public hearings for the purpose of denial, suspension, or revocation of a certificate, endorsement, or registration.

SEC. 15. Upon application in writing and after hearing pursuant to notice, the Commissioners may issue a new certificate or endorsement of certificate of certified public accountant to a person whose certificate or endorsement of certificate shall have been revoked, or may permit the registration of a partnership or of a practicing certified public accountant whose registration has been revoked.

SEC. 16. Nothing contained in this Act shall prohibit any natural person not a certified public accountant from serving as an employee of or an assistant to a certified public accountant or a partnership of certified public accountants. Nothing contained in this Act shall prohibit a certified public accountant or a partnership of certified public accountants of another State from temporarily

performing specific accounting engagements in the District of Columbia fessional business incident to regular practice outside the District of Col Provided, That such temporary practice is conducted in conformity with th of professional conduct promulgated by the Commissioners.

SEC. 17. Any person who violates any provision of section 3 of this Act guilty of a misdemeanor and upon conviction thereof shall be subject to a not more than $500 or to imprisonment for not more than one year, or bo fine and imprisonment. Whenever the Commissioners have reason to belie any person is liable to punishment under this section, it may refer the facts Corporation Counsel of the District of Columbia, who may cause the prop ceedings to be brought, if, in his judgment, such is warranted.

SEC. 18. The use, display, or uttering by a person of a letterhead, listing sign, advertisement, directory classification, or other printed, engraved, or instrument or device, bearing a person's name in conjunction with the "certified public accountant" or "certified ppize secountants" or any abbre thereof, shall be prima facie evidence in any action brought under section. 11 Act that the person whose name is so displayed caused or procured the dis uttering of such letterhead, listing, eard, sign, advertisement, directory fication, or other printed, engraved, or written instrument or device, and t person is holding himself out to be a certified putüe accountant or partne certified public accountants.

SEC. 19. All statements, records, schedules, working papers, and memor made by a certified public accountant or by a partnership of certified accountants incident to or in the course of professional service to clents. reports submitted to clients, shall be and remain the property of such public accountant or partnership in the absence of an expressed ag between such persons and the client to the contrary. No such statement. schedule, working paper, or memorandums shall be sold, transferred. queathed, without the consent of the ellent or his personal representa assignee, to anyone other than one or more surviving partners or new par such persons.

SEC. 20. If any provision of this Aer or the application thereof to any p to any circumstances is held invalid, such invalidity shall not affect othe gions or applications of this Act which can be given effect without the provision or application, and to this end the provisions of this Act are des

be severable.

SEC. 21. The Commissioners are authorized and empowered, after hearing, to establish, abolish, increase, or decrease, from time to time, charges necessary to defray the approximate cost of administering the pr of this Act. All funds derived from fees and charges collected relevan administration of this Act shall be paid into the Treasury of the United the credit of the District of Columbia.

SEC. 22. There is hereby authorized to be appropriated out of revenge District of Columbia such funds as may be necessary to pay the exp administering and carrying out the purpose of this Act.

SEC. 23. The Act entitled "An Act to create a board of accountanes District of Columbia, and for other purposes", approved February 17, Stat. 1261), as amended, is hereby repealed. This Act shall take ef

enactment.

Mr. ABERNETHY. We have Mr. Fraser with us.

Mr. Fraser, we would be pleased to have the benefit of you

STATEMENT OF HON. DONALD M. FRASER, REPRESEN IN CONGRESS FROM THE STATE OF MINNESOTA

Mr. FRASER. Thank you very much, Mr. Chairman. I wo to make a brief statement and introduce those who will test primary supporters.

Let me say first of all, Mr. Chairman, that this bill world replace a present law which deals with the practice and adna practice of certified public accountants, a law which is now q It was passed in 1923. Virtually every State in the Unit laws which are more modern and more in accordance with the