MISSISSIPPI LEGISLATURE

2004 Regular Session

To: Judiciary, Division A; Appropriations

By: Senator(s) Dawkins

Senate Bill 3034

AN ACT TO AMEND SECTIONS 73-33-11 AND 73-33-15, MISSISSIPPI CODE OF 1972, TO REVISE THE SUBPOENA POWER OF THE MISSISSIPPI PUBLIC ACCOUNTANCY BOARD AND TO AUTHORIZE THE BOARD TO IMPOSE A CIVIL PENALTY AGAINST PERSONS ADJUDGED TO HAVE VIOLATED CERTAIN PUBLIC ACCOUNTING REGULATORY LAWS; TO AMEND SECTIONS 27-104-13, 27-104-27 AND 31-17-123, MISSISSIPPI CODE OF 1972, TO EXEMPT SPECIAL FUNDS GENERATED BY THE MISSISSIPPI PUBLIC ACCOUNTANCY BOARD FROM PROVISIONS ALLOWING SUCH FUNDS TO BE BORROWED DURING A REVENUE SHORTFALL; AND FOR RELATED PURPOSES.

     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

     SECTION 1.  Section 73-33-11, Mississippi Code of 1972, is amended as follows:

     73-33-11.  The Mississippi State Board of Public Accountancy may revoke, suspend, impose a civil penalty or take other appropriate action with respect to any license or permit issued pursuant to this chapter for any unprofessional conduct by the licensee or permit holder, or for other sufficient cause, provided written notice shall have been sent by registered mail (with the addressee's receipt required) to the holder thereof, twenty (20) days before any hearing thereon, stating the cause for such contemplated action and appointing a day and a place for a full hearing thereon by the board, provided further, no certificate or license be cancelled or revoked until a hearing shall have been given to the holder thereof according to law.  But, after such hearing, the board may, in its discretion, suspend the certified public accountant from practice as a certified public accountant in this state.  When payment of a civil penalty is assessed and levied by the board in accordance with this section, such civil penalty shall not exceed Five Thousand Dollars ($5,000.00) for each violation.

     The members of the board are hereby empowered to sit as a trial board; to administer oaths (or affirmations); to summon any witness and to compel his attendance and/or his testimony, under oath (or affirmation) before the board or for purposes of deposition during any board authorized investigation; to compel the production * * * of any book, paper or document by the owner or custodian thereof to a hearing or for purposes of investigation; and/or to compel any officer to produce, during investigation or at * * * hearing a copy of any public record (not privileged from public inspection by law) in his official custody, certified to, by him.  The board shall elect one (1) of its members to serve as clerk, to issue summons and other processes, and to certify copies of its records or, the board may delegate such duties to the executive director.

     The accused may be represented by counsel at his own expense during investigation or hearing or, in the instance of a firm permit holder through its manager and/or counsel to defend such charges.  If the accused does not appear or answer, judgment may be entered by default, provided the board finds that proper service was made on the accused.

     The minutes of the board shall be recorded in an appropriate minute book permanently maintained by the board at its office.

     In a proceeding conducted under this section by the board for disciplinary action against a licensee or permit holder, those reasonable costs that are expended by the board in the investigation and conduct of a proceeding for discipline including, but not limited to, the cost of service of process, court reporters, expert witnesses, investigators and legal fees may be imposed by the board on the accused, the charging party or both.

     Such costs shall be paid to the board upon the expiration of the period allowed for appeal of such penalties under this section, or may be paid sooner if the guilty party elects.  Money collected by the board under this section shall be deposited to the credit of the board's special fund in the State Treasury.  When payment of a monetary penalty assessed by the board under this section is not paid when due, the board shall have the power to institute and maintain proceedings in its name for enforcement of payment in the Chancery Court of the First Judicial District of Hinds County, Mississippi, or in the Chancery Court of the county where the respondent resides.

     In case of a decision adverse to the accused, appeal shall be made within thirty (30) days from the day on which decision is made to the circuit court of the First Judicial District of Hinds County, Mississippi, or in the circuit court of the county in which the accused resides.  In the case of a nonresident licensee, the appeal shall be made to the First Judicial District of Hinds County, Mississippi.  The order of the board shall not take effect until the expiration of said thirty (30) days.

     In case of an appeal, bond for costs in the circuit court shall be given as in other cases; and the order of the board shall not take effect until such appeal has been finally disposed of by the court or courts.

     The board may, at any time, reinstate a license or permit if it finds that such reinstatement is justified.

     In addition to the reasons specified in the first paragraph of this section, the board shall be authorized to suspend the license of any licensee for being out of compliance with an order for support, as defined in Section 93-11-153.  The procedure for suspension of a license for being out of compliance with an order for support, and the procedure for the reissuance or reinstatement of a license suspended for that purpose, and the payment of any fees for the reissuance or reinstatement of a license suspended for that purpose, shall be governed by Section 93-11-157 or 93-11-163, as the case may be.  Actions taken by the board in suspending a license when required by Section 93-11-157 or 93-11-163 are not actions from which an appeal may be taken under this section.  Any appeal of a license suspension that is required by Section 93-11-157 or 93-11-163 shall be taken in accordance with the appeal procedure specified in Section 93-11-157 or 93-11-163, as the case may be, rather than the procedure specified in this section.  If there is any conflict between any provision of Section 93-11-157 or 93-11-163 and any provision of this chapter, the provisions of Section 93-11-157 or 93-11-163, as the case may be, shall control.

     SECTION 2.  Section 73-33-15, Mississippi Code of 1972, is amended as follows:

     73-33-15.  (1)  It shall be unlawful for any person, except a registered public accountant, who is associated and registered with a firm permit holder and/or for any firm, except for a certified public accountant firm that holds a valid CPA firm permit to practice public accounting issued pursuant to this chapter to:

          (a)  Issue, sign or permit his name or firm name to be associated with any report, transmittal letter or other written communication issued as a result of an examination of financial statements or financial information which contains either an expression of opinion or other attestation as to the fairness, accuracy or reliability of such financial statements;

          (b)  Offer to perform, or perform, for the public, public accounting, tax consulting or other accounting-related services while holding himself out as a certified public accountant or as a firm of certified public accountants or certified public accountant firm; or

          (c)  Maintain an office or other facility for the transaction of business as a certified public accountant or certified public accountant firm.

     (2)  Any person or firm violating subsection (1) of this section shall be guilty of a misdemeanor, and may, upon conviction therefor, be punished by a criminal fine of not less than Five Hundred Dollars ($500.00) nor more than Five Thousand Dollars ($5,000.00), or by imprisonment in the county jail for not less than ten (10) days nor more than six (6) months, or by both such fine and imprisonment in the discretion of the court.

     (3)  In addition to any other penalty which may be applicable, the board may impose a civil penalty against any person adjudged by the board to be in violation of subsection (1) of this section.  The civil penalty shall not exceed Five Thousand Dollars ($5,000.00) per violation and shall be deposited into the special fund to the credit of the board.

     (4)  The provisions of paragraph (a) of subsection (1) of this section shall not be construed to apply to an attorney licensed to practice law in this state; to a person for making statements as to his own business; to an officer or salaried employee of a firm, partnership or corporation for making an internal audit, statement or tax return for the same; to a bookkeeper for making an internal audit, statement or tax return for his employer, whose books he regularly keeps for a salary; to a receiver, a trustee or fiduciary as to any statement or tax return with reference to the business or property entrusted to him as such; to any federal, state, county, district or municipal officer as to any audit, statement, or tax return made by him in the discharge of the duties of such office.

     (5)  Nothing in this section shall require a sole proprietor not acting as a practice unit to associate and register with a certified public accounting firm before engaging in the practice of public accounting.

     SECTION 3.  Section 27-104-13, Mississippi Code of 1972, is amended as follows:

     27-104-13.  The State Fiscal Officer shall have the right to disapprove or reduce and revise such estimates of general funds and state-source special funds for any general fund or special-fund agency, and for the "administration and other expenses" budget of the Department of Transportation, in an amount not to exceed five percent (5%) if he finds that funds will not be available within the period for which the budget is drawn, or if he finds that the requested expenditures, or any part thereof, are not authorized by law, and such action shall be reported to the Legislative Budget Office.  The State Fiscal Officer may, upon his determination of need based upon a finding that funds will not be available within the period for which the budget is drawn, transfer funds as provided in Section 27-103-203, from the Working Cash-Stabilization Reserve Fund to the General Fund to supplement the general fund revenue. In the event that the estimates of general funds and state-source special funds of all general fund and special-fund agencies, and of the "administration and other expenses" budget of the Department of Transportation, have been reduced by five percent (5%), additional reductions may be made but shall consist of a uniform percentage reduction of general funds and state-source special funds to all general fund and special-fund agencies, and to the "administration and other expenses" budget of the Department of Transportation.  Any state-source special funds reduced under the provisions of this section shall be transferred to the State General Fund upon requisitions for warrants signed by the respective agency head and said transfer shall be made within a reasonable period to be determined by the State Fiscal Officer.

     For the purpose of this section, "state-source special funds" shall be construed to mean any special funds in any agency derived from any source, but shall not include the following special funds:  special funds derived from federal sources, from local or regional political subdivisions, or from donations; special funds held in a fiduciary capacity for the benefit of specific persons or classes of persons; self-generated special funds of the state institutions of higher learning or the state junior colleges; special funds of Mississippi Industries for the Blind, the State Port at Gulfport, Yellow Creek Inland Port, Pat Harrison Waterway District, Pearl River Basin Development District, Pearl River Valley Water Management District, Tombigbee River Valley Water Management District, Yellow Creek Watershed Authority, or Coast Coliseum Commission, the Mississippi Board of Public Accountancy; special funds of the Department of Wildlife, Fisheries and Parks derived from the issuance of hunting or fishing licenses; and special funds generated by agencies whose primary function includes the establishment of standards and the issuance of licenses for the practice of a profession within the State of Mississippi.

     SECTION 4.  Section 27-104-27, Mississippi Code of 1972, is amended as follows:

     27-104-27.  Notwithstanding anything in Sections 27-103-101 through 27-103-139 and 27-104-1 through 27-104-29 contained, the same shall not be construed to apply to any agency supported wholly by funds granted or allotted under any act of Congress.  The State Auditor of Public Accounts and after July 1, 1986, the State Fiscal Officer shall determine which special fund accounts in the State Treasury require an appropriation act and request an appropriation for such special fund accounts.  For all other special fund accounts, the State Auditor of Public Accounts, or the State Fiscal Officer after July 1, 1986, shall certify that such accounts do not require an appropriation.  The Legislative Budget Office shall recommend an appropriation for each special fund account existing in the State Treasury so certified as requiring an appropriation, unless exempted as hereinafter provided.  In the event the Legislative Budget Committee and the State Fiscal Officer find that any state agency should not be included under the provisions of Sections 27-103-101 through 27-103-139 and 27-104-1 through 27-104-29, then the said committee and officer may, in their discretion, exempt said state agency from the provisions thereof.  Sections 27-103-101 through 27-103-139 and 27-104-1 through 27-104-29 shall not apply to funds collected and disbursed by a state agency created and existing under the provisions of Sections 73-3-101 through 73-3-169.  Sections 27-103-101 through 27-103-139 and 27-104-1 through 27-104-29 shall not apply to funds deposited into the special fund created pursuant to Section 45-9-101, the special fund created pursuant to Section 69-37-39, the special fund created pursuant to Section 1 of Chapter 521, Laws of 1999, the special fund created pursuant to Section 31-17-127 or the special fund created pursuant to Section 65-1-110, the special fund created pursuant to Section 73-33-8.

     The State Fiscal Officer shall not promulgate or attempt to enforce any rule, order or regulation which is not in accordance with the provisions of a legally executed trust indenture agreement, nor shall Sections 27-103-101 through 27-103-139 and 27-104-1 through 27-104-29 be construed to apply to funds collected and disbursed by a state agency under Sections 65-33-45 and 65-33-47.

     SECTION 5.  Section 31-17-123, Mississippi Code of 1972, is amended as follows:

     31-17-123.  The intent of the Legislature is to authorize borrowing funds under the provisions of Sections 31-17-101 through 31-17-123 to offset any temporary cash flow deficiencies and should not be construed to authorize the borrowing of any funds in an amount which cannot be repaid during the fiscal year in which such funds are borrowed.  The State Tax Commission and University Research Center, utilizing all available revenue forecast data, shall annually develop a general fund revenue estimate to be adopted by the Legislative Budget Office as of the date of sine die adjournment.  If, at the end of October, or at the end of any month thereafter of any fiscal year, the revenues received for the fiscal year shall fall below ninety-eight percent (98%) of the Legislative Budget Office general fund revenue estimate at the date of sine die adjournment, the State Fiscal Officer shall reduce allocations of general funds and state-source special funds to general fund and special fund agencies and to the "administration and other expenses" budget of the Department of Transportation in an amount necessary to keep expenditures within the sum of actual general fund receipts including any transfers to the General Fund from the Working Cash-Stabilization Reserve Fund for the fiscal year.  The State Fiscal Officer may, upon his determination of need based on the revenue shortfall, transfer funds as provided in Section 27-103-203, from the Working Cash-Stabilization Reserve Fund to the General Fund to supplement the general fund revenue.  State-source special funds in an amount equal to any reduction made under the provisions of this section shall be transferred to the State General Fund upon requisitions for warrants signed by the respective agency head and such transfer shall be made within a reasonable period to be determined by the State Fiscal Officer.  No agency's allocation shall be reduced in an amount to exceed five percent (5%); however, in the event that the allocations of general funds and state-source special funds to all general fund and special fund agencies and to the "administration and other expenses" budget of the Department of Transportation have been reduced by five percent (5%), any additional reductions required to be made hereunder shall consist of a uniform percentage reduction of general funds and state-source special funds to all general fund and special fund agencies, and to the "administration and other expenses" budget of the Department of Transportation.  Any receipt from loans authorized by Sections 31-17-101 through 31-17-123 shall not be included as revenue receipts.  The State Fiscal Officer shall immediately send notice of any action taken under authority of this section to the Legislative Budget Office.

     For the purpose of this section, "state-source special funds" shall be construed to mean any special funds in any agency derived from any source, but shall not include the following special funds:  special funds derived from federal sources, from local or regional political subdivisions, or from donations; special funds held in a fiduciary capacity for the benefit of specific persons or classes of persons; self-generated special funds of the state institutions of higher learning or the state junior colleges; special funds of Mississippi Industries for the Blind, the State Port at Gulfport, Yellow Creek Inland Port, Pat Harrison Waterway District, Pearl River Basin Development District, Pearl River Valley Water Management District, Tombigbee River Valley Water Management District, Yellow Creek Watershed Authority, or Coast Coliseum Commission; special funds of the Department of Wildlife, Fisheries and Parks derived from the issuance of hunting or fishing licenses, the Mississippi Board of Public Accountancy; and special funds generated by agencies whose primary function includes the establishment of standards and the issuance of licenses for the practice of a profession within the State of Mississippi.

     SECTION 6.  This act shall take effect and be in force from and after July 1, 2004.