RULES AND REGULATIONS
BUREAU OF PROFESSIONAL AND OCCUPATIONAL AFFAIRS
[ 49 PA. CODE CH. 43b ]
Schedule of Civil Penalties—Accountants
[47 Pa.B. 5948]
[Saturday, September 23, 2017]The Commissioner of Professional and Occupational Affairs (Commissioner) amends § 43b.10a (relating to schedule of civil penalties—accountants) to read as set forth in Annex A.
Effective Date
This final-form rulemaking is effective January 1, 2018.
Statutory Authority
Section 5(a) of the act of July 2, 1993 (P.L. 345, No. 48) (Act 48) (63 P.S. § 2205(a)) authorizes the Commissioner, after consultation with licensing boards in the Bureau of Professional and Occupational Affairs (Bureau), to promulgate a schedule of civil penalties for violations of the acts or regulations of the licensing boards.
Description and Need for this Final-Form Rulemaking
Act 48 authorizes agents of the Bureau to issue citations and impose civil penalties under schedules adopted by the Commissioner in consultation with the Bureau's boards and commissions. Act 48 citations streamline the disciplinary process by eliminating the need for formal orders to show cause, answers, adjudications and orders, and consent agreements. An individual who receives an Act 48 citation retains his due process right to a hearing prior to the imposition of discipline. Under the authority of Act 48, the Commissioner previously published a schedule of civil penalties for certain violations of the CPA Law (63 P.S. §§ 9.1—9.16b) and the regulations of the State Board of Accountancy (Board). This schedule includes violations of the Board's continuing professional education (CPE) regulations. Because the Board is amending its regulations concerning required CPE in a separate final-form rulemaking, the Commissioner, with approval of the Board, is similarly amending § 43b.10a to reflect the Board's final-form rulemaking. See 47 Pa.B. 5940 (September 23, 2017).
Summary of Comments and Responses to Proposed Rulemaking
Notice of proposed rulemaking was published at 45 Pa.B. 2874 (June 13, 2015), with a 30-day public comment period. The Pennsylvania State Association of Township Supervisors commented that it did not have a position on the rulemaking, as it does not affect the organization's members. The Commissioner received no other comments from the public. The Senate Consumer Protection and Professional Licensure Committee (SCP/PLC) did not submit comments. The House Professional Licensure Committee (HPLC) notified the Commissioner that it would not take formal action until the final-form rulemaking is promulgated. The Independent Regulatory Review Commission (IRRC) notified the Commissioner that it did not have objections, comments or recommendations and that, if the final-form rulemaking was delivered without revisions and the Legislative committees do not take action, the final-form rulemaking would be deemed approved. In that there were no substantive comments on the proposed rulemaking, the Commissioner did not revise the final-form rulemaking.
Fiscal Impact
This final-form rulemaking will not have fiscal impact on the regulated community, the general public or the Commonwealth and its political subdivisions.
Paperwork Requirements
This final-form rulemaking will not impose additional paperwork requirements upon the Commonwealth, political subdivisions, the regulated community or the private sector.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P.S. § 745.5(a)), on May 29, 2015, the Commissioner submitted a copy of the notice of proposed rulemaking, published at 45 Pa.B. 2874, to IRRC and the Chairpersons of the HPLC and the SCP/PLC for review and comment.
Under section 5(c) of the Regulatory Review Act, the Commissioner shall submit to IRRC, the HPLC and the SCP/PLC copies of comments received during the public comment period, as well as other documents when re-quested. In preparing the final-form rulemaking, the Commissioner has considered all comments from the HPLC and the public.
Under section 5.1(j.2) of the Regulatory Review Act (71 P.S. § 745.5a(j.2)), on August 23, 2017, the final-form rulemaking was deemed approved by the HPLC and the SCP/PLC. Under section 5(g) of the Regulatory Review Act, the final-form rulemaking was deemed approved by IRRC effective August 23, 2017.
Additional Information
Further information may be obtained by contacting Sara Fox, Board Administrator, State Board of Accountancy, P.O. Box 2649, Harrisburg, PA 17105-2649, RA-accountancy@pa.gov. Reference No. 16A-5514 (schedule of civil penalties—accountants) when requesting information.
Findings
The Commissioner finds that:
(1) Public notice of proposed rulemaking was given under sections 201 and 202 of the act of July 31, 1968 (P.L. 769, No. 240) and regulations promulgated thereunder, 1 Pa. Code §§ 7.1 and 7.2.
(2) A public comment period was provided as required by law, and all comments were considered.
(3) This final-form rulemaking does not include any amendments that would enlarge the scope of the proposed rulemaking published at 45 Pa.B. 2874.
(4) The final-form rulemaking adopted by this order is necessary and appropriate for the administration of the CPA Law and Act 48.
Order
The Commissioner, acting under Act 48, orders that:
(a) The regulations of the Commissioner, 49 Pa. Code Chapter 43b, are amended by amending § 43b.10a to read as set forth in Annex A.
(b) The Commissioner shall submit this order and Annex A to the Office of Attorney General and the Office of General Counsel for approval as required by law.
(c) The Commissioner shall submit this order and Annex A to IRRC, the HPLC and the SCP/PLC as required by law.
(d) The Commissioner shall certify this order and Annex A and deposit them with the Legislative Reference Bureau as required by law.
(e) This final-form rulemaking shall take effect January 1, 2018.
IAN J. HARLOW,
Commissioner of Professional and Occupational Affairs(Editor's Note: See 47 Pa.B. 5761 (September 9, 2017) for IRRC's approval order.)
Fiscal Note: Fiscal Note 16A-5514 remains valid for the final adoption of the subject regulation.
Annex A
TITLE 49. PROFESSIONAL AND VOCATIONAL STANDARDS
PART I. DEPARTMENT OF STATE
Subpart A. PROFESSIONAL AND OCCUPATIONAL AFFAIRS
CHAPTER 43b. COMMISSIONER OF PROFESSIONAL AND OCCUPATIONAL AFFAIRS
SCHEDULE OF CIVIL PENALTIES, GUIDELINES FOR IMPOSITION OF CIVIL PENALTIES AND PROCEDURES FOR APPEAL § 43b.10a. Schedule of civil penalties—accountants.
STATE BOARD OF ACCOUNTANCY
Violation under 63 P.S. Title/Description Civil Penalty Section 9.8b(b) Failure to complete 80 hours of acceptable continuing professional education during reporting period 1st offense—1 to 20 hour deficiency—$300;
21 to 40 hour deficiency—$600; 41 to 60
hour deficiency—$800; 61 to 80 hour
deficiency—$1,0002
2nd or subsequent offense—formal actionSection 9.12(a) Unlawful use of ''certified public accountant,'' ''CPA'' or similar representation by person who has not received a CPA certificate or whose certificate is revoked or suspended 1st offense—$1,0001
2nd or subsequent offense—formal actionSection 9.12(c) Unlawful use of ''certified public accountant,'' ''public accountant,'' ''CPA,'' ''PA'' or similar representation by a firm never licensed 1st offense—$1,0001
2nd or subsequent offense—formal actionSection 9.12(j) Unlawful use of ''public accountant,'' ''PA'' or similar representation by person who has not received a PA registration or CPA certificate 1st offense—$1,0001
2nd or subsequent offense—formal actionSection 9.12(o) Unlawful representation of membership in professional society, association or organization of CPAs or PAs by person not credentialed as CPA or PA or firm not licensed 1st offense—$2501
2nd or subsequent offense—formal actionSection 9.12(q) Engaging in the practice of public accounting in this Commonwealth when the individual's license is expired 1st offense—less than 6 months—$500;
6 months or more—formal action
2nd or subsequent offense—formal actionViolation under 49 Pa. Code Chapter 11 Section 11.62(b) Failure to complete 20 hours of acceptable continuing professional education during each year of reporting period 1st offense—$300
2nd or subsequent offense—formal actionSection 11.63(a)(1) Failure to complete 24 hours of acceptable continuing professional education in accounting and attest subjects during reporting period, if required 1st offense—$50 per hour deficient, not to
exceed $1,0002
2nd or subsequent offense—formal actionSection 11.63(a)(7) Failure to complete 4 hours of acceptable continuing professional education in professional ethics during reporting period 1st offense—$3002
2nd or subsequent offense—formal actionSection 11.67(b) Failure to timely submit documentation of continuing professional education during Board audit (assumes no other continuing education violation) 1st offense—$500
2nd or subsequent offense—formal action1 The first offense provision does not apply to a situation involving multiple occurrences or a pattern or practice of misconduct.
2 When there are violations of both 63 P.S. § 9.8b(b) and 49 Pa. Code § 11.63(a)(1) or (7) (relating to CPE subject areas; relevance to professional competence), a combined civil penalty will not be assessed for both sets of violations. The highest civil penalty will be assessed whether for the violation of 63 P.S. § 9.8b(b) or 49 Pa. Code § 11.63(a)(1) or (7).
[Pa.B. Doc. No. 17-1574. Filed for public inspection September 22, 2017, 9:00 a.m.]
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