Session of 1998
By Committee on Business, Commerce and Labor
            9             AN ACT concerning certified public accountancy; civil fines; amending
10             K.S.A. 1997 Supp. 1-311 and repealing the existing section.
12       Be it enacted by the Legislature of the State of Kansas:
13           New Section 1. (a) The state board of accountancy, in addition to
14       any other penalty prescribed by chapter 1 of the Kansas Statutes Anno-
15       tated, may assess civil fines in an amount not to exceed $5,000 for the
16       first violation and for each subsequent violation, plus costs, including at-
17       torney fees, after proper notice and opportunity to be heard, against any
18       person or entity for a violation of the statutes, rules and regulations or
19       orders enforceable by the board. Notice and hearing under this act shall
20       be conducted in accordance with the Kansas administrative procedure
21       act. All costs assessed under this section shall be remitted to the state
22       treasurer at least monthly and shall be deposited in the state treasury and
23       credited to the board of accountancy fee fund.
24           (b) In determining the amount of penalty to be assessed pursuant to
25       this section, the board may consider the following factors among others:
26       (1) Willfulness of the violation; (2) repetitions of the violation; and (3)
27       magnitude of the risk of harm caused by the violation.
28           Sec. 2. K.S.A. 1997 Supp. 1-311 is hereby amended to read as fol-
29       lows: 1-311. (a) The board may revoke or suspend any certificate issued
30       under the laws of this state including a Kansas certificate, or any regis-
31       tration granted under K.S.A. 1-308, and amendments thereto, or may
32       revoke, suspend or refuse to renew any permit issued under K.S.A. 1-310
33       and amendments thereto, may censure the holder of any such permit,
34       limit the scope of practice of any permit holder, and may impose an
35       administrative fine not exceeding $1,000 $5,000 plus costs, including at-
36       torney fees, for any one or any combination each and every one of the
37       following causes:
38           (1) Fraud or deceit in obtaining a Kansas certificate, in obtaining
39       registration with the board under any law of this state, or in obtaining a
40       permit to practice as a certified public accountant, or renewal thereof,
41       under K.S.A. 1-310 and amendments thereto;
42           (2) dishonesty, fraud or gross negligence in practice as a public ac-
43       countant;

HB 2620


  1           (3) violation of any of the provisions of subpart (2)(B) of subsection
  2       (b) of K.S.A. 1-302b or 1-316 and amendments thereto;
  3           (4) willful violation of a rule of professional conduct promulgated by
  4       the board under the authority granted by K.S.A. 1-202, and amendments
  5       thereto;
  6           (5) conviction of a felony under the laws of any state or of the United
  7       States;
  8           (6) conviction of any crime, an essential element of which is dishon-
  9       esty or fraud, under the laws of any state or of the United States;
10           (7) cancellation, revocation, suspension or refusal to renew the au-
11       thority to practice as a certified public accountant or a public accountant
12       in any state or foreign country; or
13           (8) failure to comply with the quality review program required by
14       K.S.A. 1-310, and amendments thereto.
15           (b) All administrative proceedings pursuant to this section shall be
16       conducted in accordance with the provisions of the Kansas administrative
17       procedure act and the act for judicial review and civil enforcement of
18       agency actions.
19           Sec. 3. K.S.A. 1997 Supp. 1-311 is hereby repealed.
20           Sec. 4. This act shall take effect and be in force from and after its
21       publication in the statute book.