ARC 4507C

ARC 4507C

ACCOUNTANCY EXAMINING BOARD[193A]

Notice of Intended Action

Proposing rule making related to CPA examinations

and providing an opportunity for public comment

The Accountancy Examining Board hereby proposes to amend Chapter 3, "Certification of CPAs," Iowa Administrative Code.

Legal Authority for Rule Making

This rule making is proposed under the authority provided in Iowa Code section 542.4.

State or Federal Law Implemented

This rule making implements, in whole or in part, Iowa Code chapter 542.

Purpose and Summary

The proposed amendment to Chapter 3 reflects a change in the availability of the certified public accountant (CPA) examinations. Instead of examinations being available during four annual examination windows with dark periods during which the examinations are not available, the Board is permitted to make examinations available year-round.

Fiscal Impact

This rule making has no fiscal impact to the State of Iowa. No current fees are being changed, and no new fees are being imposed.

Jobs Impact

After analysis and review of this rule making, no impact on jobs has been found.

Waivers

Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Board for a waiver of the discretionary provisions, if any, pursuant to 193A—Chapter 5.

Public Comment

Any interested person may submit comments concerning this proposed rule making. Comments in response to this rule making must be received by the Board no later than 4:30 p.m.on July 10, 2019. Comments should be directed to:

Public Hearing

A public hearing at which persons may present their views orally or in writing will be held as follows:

Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making.

Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Board and advise of specific needs.

Review by Administrative Rules Review Committee

The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee's meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).

The following rule-making action is proposed:

Amend subrule 3.6(1) as follows:

3.6(1) Effective with the implementation of the computer-based examination, a candidate may take the required test subjects individually and in any order. Except as provided in rule 193A—3.7(542), credit for any subjects passed shall be valid for 18 months from the actual date the candidate sat for the subject, without the candidate's having to attain a minimum score on any failed subject(s) and without regard to whether the candidate sat for any other subjects. The candidate shall also be subject to the following:

a. The candidate must pass all four subjects of the examination within a rolling 18-month period that begins on the date that the first subject is passed. If all four subjects are not passed within the 18-month period, credit for any subject taken outside the 18-month period shall expire.

b. If Subject to paragraph 3.6(1)"c," if a candidate fails a subject, the candidate cannot retake the same failed subject in an examination window. An examination window"examination window" refers to a three-month period in which a candidate has the opportunity to take the examination (comprised of two months when the examination is offered and one month when the examination will not be offered while routine maintenance is performed and the item bank is refreshed). Thus, the candidate will be able to sit for the examination two out of three months within an examination window.

c. If and when the board determines that examination system changes necessary to eliminate examination window limitations have been implemented, paragraph 3.6(1)"b" will no longer be effective and a candidate will be permitted to retake a subject once the candidate's grade for any previous attempt of that same subject has been released.