Florida Institute of Certified Public Accountants, Arthur L. Shealy, Jr., New Hampshire Society of Certified Public Accountants, Alexander Anton, president, letter dated July 14, 1965 to Chairman McMillan.... New York State Society of Certified Public Accountants, William P. Oregon Society of Certified Public Accountants, Gordon R. Jacobson, Securities and Exchange Commission, Manuel F. Cohen, Chairman, letter dated January 6, 1966, to Chairman McMillan enclosing Stonerock, R. F. & Co., letter dated July 20, 1965, to Chairman McMillan Tennessee Society of Certified Public Accountants, Joseph F. Decosimo, president, letter dated June 9, 1965, to Chairman McMillan Vermont Society of Certified Public Accountants, Robert A. Boucher, Letter dated June 2, 1965, to Chairman McMillan.. Letter dated June 7, 1965, to Hon. Alan Bible... Virginia Society of Certified Public Accountants, Robert T. Bosserman, president, letter dated June 7, 1965, to Chairman McMillan.. CERTIFIED PUBLIC ACCOUNTANTS WEDNESDAY, JANUARY 19, 1966 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE No. 2 OF THE COMMITTEE ON THE DISTRICT OF COLUMBIA, Washington, D.C. The subcommittee met at 10 a.m. in room 1310, Longworth House Office Building, the Honorable Thomas G. Abernethy (chairman) presiding. Members present: Mr. Abernethy, chairman; Mr. Fraser, Mr. Sickles, and Mr. Harsha. Also present: James T. Clark, clerk; Hayden S. Garber, counsel; Donald Tubridy, minority clerk; and Leonard O. Hilder, investigator. Mr. ABERNETHY. The subcommittee will come to order. The purpose of the meeting of Subcommittee No. 2 is to take testimony on two bills, one introduced by Mr. Fraser, H.R. 7624, and one by Mr. Mathias, H.R. 9815, to provide for regulation of the professional practice of certified public accountants in the District of Columbia, including the examination, licensure, registration of certified public accountants, and for other purposes. The purpose of the bills is to repeal the present 1923 CPA law (D.C. Code, title 2, ch. 9, secs. 901-909; 42 stat. 1261) and set up new and improved standards to conform with those in most of the States. (Staff memorandum and the bills referred to, H.R. 7624 and H.R. 9815, follow:) JANUARY 17, 1966. STAFF MEMORANDUM REGARDING H.R. 7624 (Fraser) and H.R. 9815 (MATHIAS) TO REGULATE CERTIFIED PUBLIC ACCOUNTANTS Purpose of bills To repeal present 1923 CPA law (approved Feb. 17, 1923, 42 Stat. 2161, D.C. Code, Tit. 2, sec. 901) and set up new and improved standards to conform to those in most of the States (30 now require higher qualifications than the District of Columbia). Main provisions of bills (1) Education and experience (sec. 7).-Requires high school diploma plus any of three combinations: 60 semester hours plus 4 years' experience; 90 semester hours plus 3 years' experience; 120 semester hours plus 2 years' experience. Present law: High school graduation or "sufficient experience in accounting"; plus (a) accounting school diploma and 1 year's experience, or (b) 3 years' experience employed by a CPA. (2) Residency (sec. 6).-District of Columbia residence or regular District of Columbia employment for 1 year prior to application. Present law: No residence requirement. (3) Examination (sec. 6).—Prescribed by Commissioners who issue CPA certificates. Waiver (sec. 8) is permitted under certain conditions for CPA's from other jurisdictions. (4) Biennial registration (sec. 9).-Required of all CPA's in the District and licensing of CPA partnerships is permitted (sec. 10). Present law: No registration required. (5) Government accounting experience (sec. 7, p. 12).-Is recognized. Present law: Not so recognized under present law. (6) Board of Accounting set up (sec. 4).—Three members, all registered CPA's, with 10 years' practice (5 in District of Columbia). Present law: Requires CPA certificate and 3 years' practice. [H.R. 7624, 89th Cong., 1st sess.] A BILL To provide for regulation of the professional practice of certified public accountants in the District of Columbia, including the examination, licensure, registration of certified public accountants, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act shall be known and may be cited as the "District of Columbia Certified Public Accountancy Act of 1965". SEC. 2. As used in this Act DEFINITIONS (a) The term "certified public accountant" means a person who is the holder in good standing of a certificate of certified public accountant issued under the laws of any State or Territory of the United States authorizing him to practice as a certified public accountant in such State or territory. A "certified public accountant of the District of Columbia" is a person who is the holder in good standing of a certificate of certified public accountant issued under the Act of Congress approved February 17, 1923, as amended (42 Stat. 1261, ch. 94), or who is the holder in good standing of a certificate of certified public accountant or of an endorsement of certificate of certified public accountant issued pursuant to section 6 or 8, respectively, of this Act authorizing him to practice as a certified public accountant in the District of Columbia. (b) The term "Commissioners" means the Commissioners of the District of Columbia sitting as a board or their authorized agent or agents. (c) The term "Board" means the Board of Accountancy. (d) The term "person" includes partnerships, corporations and associations as well as natural persons. (e) The term "he" and the derivatives thereof shall be construed to include the word "she" and the derivatives thereof. SEC. 3. (a) No natural person shall assume or use the title or designation "certified public accountant" or the abbreviation "C.P.A.", or any other title, designation, words, letters, or abbreviations tending to indicate that such person is a certified public accountant, or is likely to be confused with "certified public accountant" or "C.P.A.", unless such person is a holder of a certificate of certified public accountant. No natural person shall engage or hold himself out to the public as being engaged in the practice of public accountancy as a certified public accountant of the District of Columbia, unless such natural person is the holder of a certificate of certified public accountant of the District of Columbia or an endorsement of certificate of certified public accountant as provided in sections 6 and 8 of this Act. (b) No partnership shall assume or use the title or designation "certified public accountants" or the abbreviation "C.P.A.'s" or any other title, designation, words, letters, abbreviations, sign, or device tending to indicate that such partnership is composed of certified public accountants, unless such partnership is registered as a partnership of certified public accountants under section 10 of this Act. (c) No corporation shall assume or use the title or designation “certified public accountant" or the abbreviation "C.P.A." or any other title, designation, words, letters, abbreviations, sign, card, or device tending to indicate that such corporation is licensed as a certified public accountant, or likely to be confused with "certified public accountant" or "C.P.A." (d) Nothing in this Act shall be construed to prohibit any person, partnership, or corporation from practicing public accountancy either gratuitously or for hire: Provided, That such person, partnership, or corporation does not assume the title of "certified public accountant", or the abbreviation "C.P.A." or any other titles, designations, or abbreviations likely to be confused with "certified public accountant" or "C.P.A." SEC. 4. (a) The Commissioners are hereby authorized and empowered to establish a Board of Accountancy, composed of three certified public accountants of the District of Columbia, to serve as their agent and to delegate to such Board of Accountancy any of the technical and professional functions vested in the Commissioners by this Act. Each of the members of the Board of Accountancy shall be registered in accordance with the provisions of section 9 of this Act and, at the time of appointment to the Board, shall have been engaged in the practice of public accountancy as a certified public accountant for a period of not less than ten years, at least five years of which shall have been in the District of Columbia. The requirements of the preceding sentence shall not apply to those persons who are members of the Board of Accountancy on the date of enactment of this Act. The length of terms for Board members shall be three years and no person shall be appointed to the Board for more than two terms. The Commissioners shall have the authority to determine from time to time the amount of compensation to be paid to Board members. The Commissioners may remove any member of the Board of Accountancy for neglect of duty or for other sufficient cause. SEC. 5. The Commissioners are authorized to adopt from time to time such rules and regulations as may be necessary to carry out the purposes of this Act including, but not limited to, rules of professional conduct and grounds for denial, suspension or revocation of any certificate, endorsement or registration applied for or issued under this Act. The Board of Accountancy shall make recommendations to the Commissioners concerning the adoption of such rules and regulations. No such rules or regulations shall be adopted until after the Commissioners shall have held a public hearing thereon. SEC. 6. (a) The Commissioners are authorized to issue a certificate of certified public accountant of the District of Columbia to any applicant furnishing to the Commissioners satisfactory proof that he has the following qualifications: (1) Is at least twenty-one years of age; (2) Is a citizen of the United States, or has declared his intention of becoming such citizen; (3) Has actually and continuously resided in or has been domiciled in the District of Columbia or has been regularly employed in the District of Columbia on a continuous full-time basis for a period of not less than one year immediately prior to the date of filing an application, or, in the case of an employee of a certified public accountant or firm of certified public accountants registered to practice in the District of Columbia, has been a bona fide resident of a foreign country for a period of not less than eighteen months immediately preceding the date of filing an application and is not qualified to be examined and to receive a certificate of certified public accountant in the State of last residence solely because of the aforesaid residence abroad; (4) Has had the education and experience specified in section 7 hereof; (5) Has successfully completed an examination in accounting and such related subjects as prescribed by the Commissioners; (6) Is of good moral character; and (7) Has paid all required fees. (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, and (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, and (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, and (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, and (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 employment of a firm of certified public accountants, all the partners of which are certified public accountants of the District of Columbia or of any State or territory of the United States, and said firm is regularly engaged in the full-time public practice as certified public accountants, or (3) (A) Completion of a four-year course of study at an approved high school or the equivalent of such a course of study; and (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 one hundred and twenty 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 two 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 nis profession as a certified public accountant or in the full-time employment of a firm of certified public accountants all the partners of wnich are certified public accountants of the District of Columbia or of some other State or territory of the United States and said |