It is enacted by the General Assembly as follows:
SECTION 1. Section 5-3-4 of the General Laws in Chapter 5-3 entitled "Public Accountancy" is hereby amended to read as follows:
{ADD 5-3-4. Board of accountancy. -- ADD} (a) There is hereby created a board of accountancy in and for the state of Rhode Island, to be known as the Rhode Island board of accountancy. The board shall consist of five (5) members. All members shall be appointed by the governor. Membership of the board shall consist of: three (3) members who hold certified public accountant certificates and valid permits to practice as certified public accountants in this state {ADD , ADD} and who are in public practice as certified public accountants in this state and one (1) member who holds an authority and valid permit to practice as a public accountant in this state {DEL , DEL} {ADD and who is in public practice as a public accountant; ADD} all four (4) {DEL of whom DEL} {ADD aforesaid members ADD} shall have at least {DEL five (5) DEL} {ADD ten (10) ADD} years experience in a full-time practice of public accountancy; and one (1) member from the public sector who shall have had professional or practical experience in the use of accounting services and financial statements, so as to be qualified to evaluate whether the qualifications, activities, and professional practice of those regulated under this chapter conform with the rules and regulations to protect the public interest. The board member from the public sector shall be designated as the public's member to the board for the term of service so appointed. Except as otherwise provided, the term of the members of the board shall be five (5) years. No member of the board shall be associated in the practice of accountancy, either individually or as a member of a firm, with any other member of the board. The members of the board appointed and serving as such under prior law on July 1, 1984 shall serve out the terms for which they were originally appointed, as members of the board created by this section. The first new incoming board member shall hold office for a term expiring one (1) year following the expiration of the term of the most senior board member of those board members then serving on July 1, 1984. The second new incoming board member shall hold office for a term expiring three (3) years following; the expiration of the term of the most senior board member of those board members then serving on July 1, 1984. Vacancies occurring during a term shall be filled by appointment for the unexpired term by the Governor. Upon the expiration of his term of office, a member shall continue to serve until his successor shall have been appointed and shall have assumed office. The governor shall remove from the board any member whose certificate, authority or permit to practice has been revoked or suspended pursuant to section 5-3-12. No person who has served one (1) complete term shall be eligible for reappointment. Appointment to fill an unexpired term is not to be considered as a complete term.
(b) The board shall consist of a chairman, a vice-chairman, a secretary, a treasurer and a public member. Officers shall serve in accordance with board seniority commencing with the office of treasurer. The board shall meet at such times and places as may be fixed by the board and in any event shall meet no less than four (4) times each year. The board may adopt, and amend from time to time, rules and regulations for the orderly conduct of its affairs and for the administration of this chapter. Four (4) members of the board shall constitute a quorum for the transaction of business. The board shall have a seal which shall be judicially noticed. The board shall keep records of its proceedings, and in any proceeding in court, civil or criminal, arising out of or founded upon any provision of this chapter, copies of said records certified as correct under the seal of the board shall be admissible in evidence. The board may employ such personnel and arrange for such assistance as it may require for the performance of its duties.
(c) Each member of the board shall receive compensation in the amount of thirty dollars ($30.00) for each day or portion thereof spent in the discharge of official duties to a maximum of seven hundred and fifty dollars ($750.00) per year and shall be reimbursed for actual and necessary expenses incurred in the discharge of official duties.
(d) All fees and monies derived under the provision of this chapter shall be paid to and received by the general treasurer of the state of Rhode Island, who shall keep the monies in a restricted receipt account. All monies in such restricted receipt account shall be used to reimburse the board for expenses incurred in the administration and enforcement of this chapter. The board treasurer is authorized and directed to draw his orders upon the general treasurer for payment from the restricted receipt account, upon receipt by the board treasurer of vouchers authenticated by the chairman, vice chairman or secretary of the board.
(e) The board shall file an annual report of its activities with the governor and the general assembly of this state. The report shall include, but not be limited to, a statement of all receipts and disbursements and a listing of all certified public accountants; public accountants; accountants licensed by foreign countries who are registered under this chapter; partnerships, corporations, offices registered under this chapter; and limited permits to practice and permits to practice issued under this chapter. The board shall mail a copy of each annual report upon request in writing to any person, office, partnership or corporation listed, or to any member of the public.
(f) The board shall prescribe such rules and regulations not inconsistent with the provisions of this chapter as it deems consistent with, or required by, the public welfare and policy set forth in section 5-3-2.
Such rules and regulations may include:
(1) Rules and regulation of procedure for governing the conduct of matters before the board.
(2) Rules and regulations of professional conduct for establishing and maintaining high standards of competence and integrity in the profession of public accounting.
(3) Rules and regulations governing educational and experience requirements for issuance of the certificate of certified public accountant.
(4) Rules and regulations establishing requirements of continuing education to promote the professional competence of holders of permits to practice under section 5-3-11 as a condition to their continuing in the practice of public accounting.
(5) Rules and regulations governing partnerships and corporations practicing public accounting including, but not limited to, rules and regulations concerning their style, name, title, and affiliation with any other organization, and establishing reasonable standards with respect to professional liability insurance.
(6) Rules and regulations for reviewing and monitoring professional performance.
(7) Any other rules and regulations which the board deems necessary or appropriate in exercising its functions under this chapter.
(g) The promulgation of any rule, regulation, or amendment thereto under subsection (f) or under any other provision of this chapter shall be in accordance with section 42-35-3 of the general laws of the state of Rhode Island. The board shall mail a copy of any proposed rule, regulation, or amendment to each holder of a certificate under section 5-3-5, an authority under section 5-3-7, or a permit or limited permit to practice under section 5-3-11 with a notice of the proposed effective date of the rule, regulation or amendment and requesting the submission of comments in a prescribed timely manner. Any comments shall be advisory in nature. The failure to mail any proposed rule, regulation, amendment, or notice to all permit holders because of delivery limitations shall not affect the validity of any proposed rule, regulation, or amendment.
(h) The board may from time to time establish one or more advisory committees as it deems necessary in the performance of its duties and responsibilities. The authority and term of an advisory committee may be permanent or temporary in nature as determined by the board.
SECTION 2. This act shall take effect upon passage.