ARC 1360C

ARC 1360C

ACCOUNTANCY EXAMINING BOARD[193A]

Adopted and Filed

Pursuant to the authority of Iowa Code section 542.4, the Accountancy Examining Board hereby amends Chapter 10, "Continuing Education," Iowa Administrative Code.

The amendment provides a reinstated licensee or a licensee who changes status from "inactive" to "active" the ability to take advantage of the alternate renewal cycle immediately at the next renewal cycle. Without this amendment, the licensee would not be qualified to use the alternate continuing education cycle until four years after reinstatement or a change of status. The amendment is consistent with how all other licensees are expected to maintain continuing education. The amendment eliminates the four years of progressive educational requirements that a reinstated licensee now has to complete and also removes unnecessary complexity in the renewal process. The Accountancy Examining Board also has the support of the Iowa Society of CPAs in this amendment.

Notice of Intended Action was published in the Iowa Administrative Bulletin on January 8, 2014, as ARC 1284C. A public hearing was held on January 28, 2014, at 9 a.m. in the Board office, 200 E. Grand Avenue, Suite 350, Des Moines, Iowa. No comments were received. This amendment is identical to that published under Notice of Intended Action.

This amendment was adopted by the Board on February 13, 2014.

This amendment does not have any fiscal impact to the state of Iowa.

This amendment is subject to waiver or variance pursuant to 193—Chapter 5.

After analysis and review of this rule making, there is a positive impact on jobs. A licensee who reinstates will now be able to take advantage of the alternate renewal cycle effective immediately at the next renewal cycle. The amendment also eliminates the cumbersome tracking of the four years of progressive educational requirements and removes unnecessary complexity in the renewal process.

This amendment is intended to implement Iowa Code chapters 17A, 272C and 546 and Iowa Code section 542.20.

This amendment will become effective on April 9, 2014.

The following amendment is adopted.

Amend subrule 10.5(7) as follows:

10.5(7) Licensees who apply to reinstate a lapsed or inactive certificate or license to active status pursuant to 193A—subrule 5.6(3) or 5.9(7) shall satisfy the basic requirement of 120 hours of continuing professional education earned in the preceding three-year period prior to the date of the application, including all required mandatory education described in rule 193A—10.7(542), to reinstate on an annual renewal schedule, modified as needed to incorporate the phase-in schedule for initial licensees described in subrules 10.5(1) to 10.5(3). Once the certificate or license is reinstated, the following schedule shall apply: basic requirement shall apply at each subsequent renewal.

a. No continuing professional education shall be required on the first annual renewal after reinstatement of a lapsed or inactive certificate or license to active status.

b. 40 hours of continuing professional education that has not previously been reported shall be required in the one-year period ending December 31 prior to the second July 1 annual renewal date following reinstatement to active status. In the second and subsequent renewals following reinstatement, the applicant must demonstrate compliance with the mandatory education described in rule 193A—10.7(542).

c. 80 hours of continuing professional education that has not previously been reported shall be required in the two-year period ending December 31 prior to the third July 1 annual renewal date following reinstatement to active status.

d. 120 hours of continuing professional education shall be required in the three-year period ending December 31 prior to the fourth and subsequent July 1 annual renewal dates following reinstatement to active status.

[Filed 2/13/14, effective 4/9/14]

[Published 3/5/14]

Editor's Note: For replacement pages for IAC, see IAC Supplement 3/5/14.