SENATE DOCKET, NO. 735        FILED ON: 1/18/2017

SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 165

The Commonwealth of Massachusetts

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PRESENTED BY:

James E. Timilty

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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:

The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:

An Act to modernize public accountancy.

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PETITION OF:

SENATE DOCKET, NO. 735        FILED ON: 1/18/2017

SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 165

The Commonwealth of Massachusetts

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In the One Hundred and Ninetieth General Court
(2017-2018)

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An Act to modernize public accountancy.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
 

SECTION 1. Section 87A of chapter 112 of the General Laws, , as appearing in the 2014 Official Edition, is hereby amended by striking out, in line 22, the words “on financial statements” and, said section is further amended by striking out the words “financial statements” and inserting in place thereof the following words:- “any attest or compilation, means” and, said section is further amended by striking out, in line 31, the word “any” and inserting in place thereof the following words:- “the attested or compiled”, and said section is further amended by inserting after the words “reliability of the”, in line 40, the following words:- “attested or compiled”.

SECTION 2. Subclause (C) of paragraph (2) of subsection (d) of section 87B of the General Laws, as so appearing, is hereby amended by striking out, in line 40, the word “five” and inserting in place thereof the  following word:- “four”.

SECTION 3. Paragraph (1) of subsection (h) of said section is hereby stricken out.

SECTION 4. Paragraph (5) of subsection (h) of said section is hereby amended by striking out, in lines 146-147, the following words “on the financial statements”

SECTION 5. Paragraph (6) of subsection (h) of said section is hereby amended by striking out, in line 151, the following words “on financial statements”

SECTION 6. Section 87B of the General Laws, as so appearing, is hereby amended by inserting the following subsection:-

(i) The board shall issue a license to a firm that holds a certificate issued by another state upon showing that:

(1) the firm holds a valid license from a U.S. jurisdiction;

(2) the firm complies with the firm ownership and peer review requirements pursuant to this chapter at the time the application is made.

SECTION 7.  Section 87B of the General Laws, as so appearing, is hereby amended by inserting the following subsection:-

(j) A licensee or person engaged in the practice of certified public accountancy shall adhere to the American Institute of CPAs’ Code of Professional Conduct.

SECTION 8. Clause (i) of paragraph (2) of subsection (b) of section 87B ½ of chapter 112 of the General Laws, as so appearing, is hereby amended by striking out, in lines 40-41, the words:- “as its managing partner or agent”

SECTION 9. Clause (iii) of paragraph (2) of subsection (b) of said chapter, as so appearing, is hereby amended by striking out, in lines 49-50, the words:- “on financial statements”

SECTION 10.  Section 87B ½ of said chapter 112, as so appearing, is hereby amended by striking out subsection (c) and inserting in place thereof the following subsection:-

(c) An applicant for initial issuance or renewal of a permit to practice under this section shall be required to register each office of a firm within the commonwealth with the board and show that all attest and compilation services rendered in this commonwealth are under the charge of a person holding a valid license to practice issued under section 87B or the corresponding provision of prior law or some other state.

SECTION 11. Subsection (a) of section 87D of the General Laws, as so appearing, is hereby amended by striking out, in line 3, the following words “on financial statements”