ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature

First Regular Session

HB 2011: state board of accountancy; continuation

Sponsor: Representative Livingston, LD 28

Committee on Commerce

Overview

Continues the Arizona State Board of Accountancy (Accountancy Board) for eight years.

History

Arizona State Board of Accountancy

Created by Laws 1919, Chapter 57, the Accountancy Board is statutorily required to protect the public from unlawful, incompetent, unqualified or unprofessional certified public accountants (CPA) through certification, regulation and rehabilitation. Furthermore, the Accountancy Board is authorized to: 1) investigate complaints; 2) establish and maintain high standards of competence, independence and integrity in practice of accounting; 3) establish reporting requirements for registrants; 4) establish basic requirements for continuing professional education for CPAs; 5) adopt procedures for disciplinary actions, administrative hearings and consent decisions; 6) issue certificates to qualified applicants; and 7) delegate certain authorities to the executive director (A.R.S. § 32-703).

The Accountancy Board is comprised of seven members who are appointed by the Governor and who must be residents of Arizona. Two public members who are not CPAs but have professional or practical experience in using accounting services and financial statements and five members must be CPAs, three of which must be in active public practice. No more than one of these members may be from the same firm. Board members serve five-year terms (A.R.S. § 32-702).

Sunset Review Process

The sunset review process provides a system for the Legislature to evaluate the need to continue the existence of state agencies which are reviewed by a legislative committee of reference (COR). The COR is required to hold a public hearing, receive testimony from agency officials and the public and consider certain sunset factors in determining whether to recommend continuing, consolidating or terminating the agency (A.R.S 41-2954).

The Senate Commerce and House Commerce COR held a public meeting on January 10, 2023 and recommended that the Legislature continue the Accountancy Board for eight years. The Accountancy Board terminates on July 1, 2023, unless continued by the Legislature (A.R.S. 41-3023.02).

Provisions

1. Continues, retroactively to July 1, 2023, the Accountancy Board until July 1, 2031. (Sec. 1, 2)

2. Repeals the Accountancy Board on January 1, 2032. (Sec. 2)

3. Includes a purpose statement. (Sec. 3)

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7. HB 2011

8. Initials PRB Page 0 Commerce

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