LRBs0119/1
MDK:jld:rs
2001 - 2002 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO 2001 ASSEMBLY BILL 345
May 23, 2001 - Offered by Representatives Vrakas and Riley.
AB345-ASA1,2,7 1An Act to repeal 440.08 (2) (a) 2., 442.03 (2), 442.03 (3), 442.04 (3), 442.04 (4)
2(b), 442.06, 442.07 (2), 442.11 (3), 442.11 (4), 442.11 (6) and 442.14; to
3renumber and amend
442.001, 442.02 (7), 442.02 (8), 442.02 (9), 442.02 (10)
4and 442.03 (1); to amend 39.75 (7) (d), 39.80 (5) (c), 45.353 (3), 64.12 (4), 64.34
5(2), 66.0609 (3), 100.03 (1) (bm), 100.03 (1) (ym) 2., 100.06 (1g) (c), 115.817 (5)
6(b) 1., 120.14 (3), 120.18 (1) (gm), 127.01 (1r), 127.01 (25m) (b), 127.06 (1) (e),
7127.06 (1m) (e), 148.19 (2), 180.0701 (4) (c), 180.0826 (2), 180.1903 (1), 180.1921
8(2), 181.0850 (2), 181.1620 (2) (intro.), 185.363 (2), 186.094 (2), 186.15 (1),
9187.31 (2), 187.41 (2), 198.167, 214.76 (2) and (4), 215.523 (2), 217.08 (2),
10221.0616 (2), 440.05 (intro.), 440.08 (2) (a) (intro.), 442.01 (2), 442.01 (3), 442.02
11(title), 442.02 (1m) (intro.), 442.02 (1m) (a), 442.02 (1m) (b), 442.02 (5m), 442.02
12(6), 442.04 (4) (bm), 442.04 (4) (c), 442.04 (5), 442.07 (title), 442.07 (1), 442.07
13(3), 442.10 (1), 442.10 (2), 442.11 (1), 442.11 (2), 442.11 (7), 442.11 (8), 442.11 (9),

1442.11 (10), 442.11 (12), 442.11 (13), 442.12 (intro.), 442.12 (3), 442.13, 447.34
2(2), 560.16 (6) (a) 3., 893.66 (title) and 893.66 (1); to repeal and recreate
3442.08; and to create 180.1903 (1m), 442.001 (1), 442.001 (4), 442.001 (5),
4442.01 (1), 442.02 (1m) (dm), 442.025, 442.083 and 442.087 of the statutes;
5relating to: licensure of certified public accountants and accounting firms,
6attest services, peer review of accounting firms, eliminating certificates of
7authority for public accountants, and granting rule-making authority.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB345-ASA1, s. 1 8Section 1. 39.75 (7) (d) of the statutes is amended to read:
AB345-ASA1,2,159 39.75 (7) (d) The commission shall keep accurate accounts of all receipts and
10disbursements. The receipts and disbursements of the commission shall be subject
11to the audit and accounting procedures established by its bylaws. However, all
12receipts and disbursements of funds handled by the commission shall be audited
13yearly by a qualified certified public accountant licensed or certified under ch. 442,
14and the report of the audit shall be included in and become part of the annual reports
15of the commission.
AB345-ASA1, s. 2 16Section 2. 39.80 (5) (c) of the statutes is amended to read:
AB345-ASA1,2,2317 39.80 (5) (c) The commission shall keep accurate accounts of all receipts and
18disbursements. The receipts and disbursements of the commission shall be subject
19to the audit and accounting procedures established under its bylaws. However, all
20receipts and disbursements of funds handled by the commission shall be audited
21yearly by a certified or licensed public accountant licensed or certified under ch. 442
22and the report of the audit shall be included in and become part of the annual report
23of the commission.
AB345-ASA1, s. 3
1Section 3. 45.353 (3) of the statutes is amended to read:
AB345-ASA1,3,212 45.353 (3) Application by any such state veterans organization shall be filed
3annually with the department for the 12-month period commencing on April 1 and
4ending on March 31 of the year in which it is filed. An application shall contain a
5statement of salaries and travel expenses paid to employees engaged in veterans
6claims service maintained at the regional office by such state veterans organization
7covering the period for which application for a grant is made, which statement has
8been certified as correct by an a certified public accountant licensed or certified under
9ch. 442 and sworn to as correct by the adjutant or principal officer of the state
10veterans organization. The application shall also contain the state organization's
11financial statement for its last completed fiscal year and such evidence of claims
12service activity as the department requires. Sufficient evidence shall be submitted
13with an initial application to establish that the state veterans organization, or its
14national organization, or both, has maintained a full-time service office at the
15regional office without interruption throughout 5 years out of the 10-year period
16immediately preceding such application. Subsequent applications must be
17accompanied by an affidavit by the adjutant or principal officer of such state veterans
18organization stating that a full-time service office was maintained at the regional
19office by such state veterans organization, or by such state organization and its
20national organization, for the entire 12-month period for which application for a
21grant is made.
AB345-ASA1, s. 4 22Section 4. 64.12 (4) of the statutes is amended to read:
AB345-ASA1,4,323 64.12 (4) At the end of each fiscal year the council shall cause a full and
24complete examination of all the books and accounts of the city to be made by
25competent certified public accountants licensed or certified under ch. 442 who shall

1report in full to the council. The summaries of such audits shall be presented and
2furnished to all newspapers and libraries of the city and to such other persons as
3shall apply therefor.
AB345-ASA1, s. 5 4Section 5. 64.34 (2) of the statutes is amended to read:
AB345-ASA1,4,95 64.34 (2) At the end of each year the council shall cause a full and complete
6examination of all of the books and accounts of the city to be made by competent
7certified public accountants licensed or certified under ch. 442, who shall report in
8full thereon to the council. Copies of such reports shall be furnished by the council
9to all newspapers of the city and to all persons who shall apply therefor.
AB345-ASA1, s. 6 10Section 6. 66.0609 (3) of the statutes is amended to read:
AB345-ASA1,4,1411 66.0609 (3) The ordinance under sub. (1) shall require that the governing body
12of the city or village obtain an annual detailed audit of its financial transactions and
13accounts by a certified public accountant licensed or certified under ch. 442 and
14designated by the governing body.
AB345-ASA1, s. 7 15Section 7. 100.03 (1) (bm) of the statutes is amended to read:
AB345-ASA1,4,2116 100.03 (1) (bm) "Audited financial statement" means a financial statement
17that, in the accompanying opinion of an independent certified public accountant or
18a public accountant holding a certificate of authority
licensed or certified under ch.
19442, fairly and in all material respects represents the financial position of the
20contractor, the results of the contractor's operations and the contractor's cash flows
21in conformity with generally accepted accounting principles.
AB345-ASA1, s. 8 22Section 8. 100.03 (1) (ym) 2. of the statutes is amended to read:
AB345-ASA1,4,2523 100.03 (1) (ym) 2. Reviewed according to generally accepted accounting
24principles by an independent certified public accountant or a public accountant
25holding a certificate of authority
licensed or certified under ch. 442.
AB345-ASA1, s. 9
1Section 9. 100.06 (1g) (c) of the statutes is amended to read:
AB345-ASA1,5,132 100.06 (1g) (c) The department shall require the applicant to file a financial
3statement of his or her business operations and financial condition that meets the
4requirements of par. (d). The licensee, during the term of his or her license, may be
5required to file such statements periodically. All such statements shall be
6confidential and shall not be open for public inspection, except that the department
7shall provide the name and address of an individual, the name and address of the
8individual's employer and financial information related to the individual contained
9in such statements if requested under s. 49.22 (2m) by the department of workforce
10development or a county child support agency under s. 59.53 (5). The department
11may require such statements to be certified by a certified public accountant licensed
12or certified under ch. 442
. Such statements and audits, when made by the
13department, shall be paid for at cost.
AB345-ASA1, s. 10 14Section 10. 115.817 (5) (b) 1. of the statutes is amended to read:
AB345-ASA1,5,1715 115.817 (5) (b) 1. At the close of each fiscal year, the board shall employ a
16licensed certified public accountant licensed or certified under ch. 442 to audit its
17accounts and certify the audit. The cost of the audit shall be paid from board funds.
AB345-ASA1, s. 11 18Section 11. 120.14 (3) of the statutes is amended to read:
AB345-ASA1,5,2119 120.14 (3) The annual meeting may authorize and direct an audit of the school
20district accounts by a licensed certified public accountant licensed or certified under
21ch. 442
.
AB345-ASA1, s. 12 22Section 12. 120.18 (1) (gm) of the statutes is amended to read:
AB345-ASA1,6,1123 120.18 (1) (gm) Payroll and related benefit costs for all school district
24employees in the previous school year. Costs for represented employees shall be
25based upon the costs of any collective bargaining agreements covering such

1employees for the previous school year. If, as of the time specified by the department
2for filing the report, the school district has not entered into a collective bargaining
3agreement for any portion of the previous school year with the recognized or certified
4representative of any of its employees and the school district and the representative
5have been required to submit final offers under s. 111.70 (4) (cm) 6., increased costs
6limited to the lower of the school district's offer or the representative's offer shall be
7reflected in the report. The school district shall amend the annual report to reflect
8any change in such costs as a result of any award or settlement under s. 111.70 (4)
9(cm) 6. between the date of filing the report and October 1. Any such amendment
10shall be concurred in by the licensed certified public accountant licensed or certified
11under ch. 442
certifying the school district audit.
AB345-ASA1, s. 13 12Section 13. 127.01 (1r) of the statutes is amended to read:
AB345-ASA1,6,1713 127.01 (1r) "Audited financial statement" means a financial statement on
14which an independent certified public accountant, or an independent public
15accountant holding a certificate of authority
licensed or certified under ch. 442, has
16expressed an opinion according to generally accepted accounting principles and has
17conducted an audit according to generally accepted auditing standards.
AB345-ASA1, s. 14 18Section 14. 127.01 (25m) (b) of the statutes is amended to read:
AB345-ASA1,6,2219 127.01 (25m) (b) The financial statement is reviewed according to generally
20accepted accounting principles by an independent certified public accountant or an
21independent public accountant who holds a certificate of authority
licensed or
22certified
under ch. 442.
AB345-ASA1, s. 15 23Section 15. 127.06 (1) (e) of the statutes is amended to read:
AB345-ASA1,7,624 127.06 (1) (e) The department may extend the filing deadline under par. (a) 2.
25by up to 30 days in response to a written request from a warehouse keeper or an

1independent certified public accountant, or an independent public accountant
2holding a certificate of authority
licensed or certified under ch. 442, that is auditing
3or reviewing the financial statement for a warehouse keeper if the department
4receives the request on or before the 5th day of the 4th month beginning after the
5close of the warehouse keeper's fiscal year and if the request states the reason for the
6extension.
AB345-ASA1, s. 16 7Section 16. 127.06 (1m) (e) of the statutes is amended to read:
AB345-ASA1,7,148 127.06 (1m) (e) The department may extend the filing deadline under par. (b)
92. by up to 30 days in response to a written request from a grain dealer or an
10independent certified public accountant, or an independent public accountant who
11holds a certificate of authority
licensed or certified under ch. 442, that is auditing or
12reviewing the financial statement for a grain dealer, if the department receives the
13written request on or before the 5th day of the 4th month beginning after the close
14of the grain dealer's fiscal year and if the request states the reason for the extension.
AB345-ASA1, s. 17 15Section 17. 148.19 (2) of the statutes is amended to read:
AB345-ASA1,7,1816 148.19 (2) Legal counsel, certified public accountants licensed or certified
17under ch. 442,
or other persons as to matters the director or officer believes in good
18faith are within the person's professional or expert competence.
AB345-ASA1, s. 18 19Section 18. 180.0701 (4) (c) of the statutes is amended to read:
AB345-ASA1,7,2120 180.0701 (4) (c) Ratification of the selection of independent certified public
21accountants licensed or certified under ch. 442.
AB345-ASA1, s. 19 22Section 19. 180.0826 (2) of the statutes is amended to read:
AB345-ASA1,7,2523 180.0826 (2) Legal counsel, certified public accountants licensed or certified
24under ch. 442,
or other persons as to matters that the director or officer believes in
25good faith are within the person's professional or expert competence.
AB345-ASA1, s. 20
1Section 20. 180.1903 (1) of the statutes is amended to read:
AB345-ASA1,8,82 180.1903 (1) One Except as provided in sub. (1m), one or more natural persons
3licensed, certified, or registered pursuant to any provisions of the statutes, if all have
4the same license, certificate, or registration or if all are health care professionals,
5may organize and own shares in a service corporation. A service corporation may
6own, operate, and maintain an establishment and otherwise serve the convenience
7of its shareholders in carrying on the particular profession, calling , or trade for which
8the licensure, certification, or registration of its organizers is required.
AB345-ASA1, s. 21 9Section 21. 180.1903 (1m) of the statutes is created to read:
AB345-ASA1,8,1210 180.1903 (1m) A service corporation for carrying on the profession of certified
11public accounting may be organized under sub. (1) if more than 50% of the
12shareholders are certified public accountants.
AB345-ASA1, s. 22 13Section 22. 180.1921 (2) of the statutes is amended to read:
AB345-ASA1,8,2514 180.1921 (2) The report shall show the address of this service corporation's
15principal office and the name and post-office address of each shareholder, director,
16and officer of the service corporation and shall certify that, with the exceptions
17permitted in s. ss. 180.1903 (1m) and 180.1913, each shareholder, director, and
18officer is licensed, certified, registered, or otherwise legally authorized to render the
19same professional or other personal service in this state or is a health care
20professional. The service corporation shall prepare the report on forms prescribed
21and furnished by the department, and the report shall contain no fiscal or other
22information except that expressly called for by this section. The department shall
23forward report blanks by 1st class mail to every service corporation in good standing,
24at least 60 days before the date on which the service corporation is required by this
25section to file an annual report.
AB345-ASA1, s. 23
1Section 23. 181.0850 (2) of the statutes is amended to read:
AB345-ASA1,9,52 181.0850 (2) Professionals and experts. Legal counsel, certified public
3accountants licensed or certified under ch. 442, or other persons as to matters the
4director or officer believes in good faith are within the person's professional or expert
5competence.
AB345-ASA1, s. 24 6Section 24. 181.1620 (2) (intro.) of the statutes is amended to read:
AB345-ASA1,9,127 181.1620 (2) (intro.) Accountant's Certified public accountant's report or
8officer's statement.
If annual financial statements are reported upon by a certified
9public accountant licensed or certified under ch. 442, the certified public
10accountant's report must accompany them. If not, the statements must be
11accompanied by a statement of the president or the person responsible for the
12corporation's financial accounting records that includes all of the following:
AB345-ASA1, s. 25 13Section 25. 185.363 (2) of the statutes is amended to read:
AB345-ASA1,9,1614 185.363 (2) Legal counsel, certified public accountants licensed or certified
15under ch. 442,
or other persons as to matters the director or officer believes in good
16faith are within the person's professional or expert competence.
AB345-ASA1, s. 26 17Section 26. 186.094 (2) of the statutes is amended to read:
AB345-ASA1,9,2018 186.094 (2) Legal counsel, certified public accountants licensed or certified
19under ch. 442,
or other persons as to matters the director or officer believes in good
20faith are within the person's professional or expert competence.
AB345-ASA1, s. 27 21Section 27. 186.15 (1) of the statutes is amended to read:
AB345-ASA1,9,2522 186.15 (1) Annual audit. Except as provided in sub. (2), the board of directors
23shall hire a licensed certified public accountant licensed or certified under ch. 442 or
24other qualified person to conduct a comprehensive annual audit of the records,
25accounts and affairs of the credit union.
AB345-ASA1, s. 28
1Section 28. 187.31 (2) of the statutes is amended to read:
AB345-ASA1,10,52 187.31 (2) Legal counsel, certified public accountants licensed or certified
3under ch. 442,
or other professional persons or experts employed by the incorporated
4Roman Catholic church, as to matters the director or officer believes in good faith are
5within the person's professional or expert competence.
AB345-ASA1, s. 29 6Section 29. 187.41 (2) of the statutes is amended to read:
AB345-ASA1,10,107 187.41 (2) Legal counsel, certified public accountants licensed or certified
8under ch. 442,
or other professional persons or experts employed by the religious
9organization, as to matters the director or officer believes in good faith are within the
10person's professional or expert competence.
AB345-ASA1, s. 30 11Section 30. 198.167 of the statutes is amended to read:
AB345-ASA1,11,6 12198.167 Certified public accountant; annual report. The directors of the
13district shall employ annually the commission or a certified public accountant
14licensed or certified under ch. 442 approved by said commission who shall be
15qualified to, and who shall with all due diligence, examine and report upon the
16system of accounts kept by the district, all the contracts of whatsoever kind made and
17entered into by the board of directors within the year immediately preceding, and the
18properties and investments of the district. Said The certified public accountant shall
19in the report make such recommendations and suggestions as to the certified public
20accountant shall seem proper and required for the good of the district, and the
21efficient and economical or advantageous management and operation of the public
22utility or utilities of the district; and the certified public accountant shall in the
23report make such recommendations and suggestions as to the system of accounts
24kept, or in the certified public accountant's judgment to be kept, by the district, in
25connection with each public utility, the classification of the public utilities of the

1district and the establishment of a system of accounts for each class, the manner in
2which such accounts shall be kept, the form of accounts, records, and memoranda
3kept or to be kept, including accounts, records, and memoranda of receipts and
4expenditures of money, and depreciation and sinking fund accounts, as in the
5certified public accountant's judgment may be proper and necessary, and shall not
6conflict with the requirements of the commission.
AB345-ASA1, s. 31 7Section 31. 214.76 (2) and (4) of the statutes are amended to read:
AB345-ASA1,11,168 214.76 (2) The certified public accountant shall deliver the audit report to a
9committee composed of 3 or more members of the board of directors, none of whom
10may be an officer, employee or agent of the savings bank. The committee shall
11present the nature, extent and conclusions of the report at the next meeting of the
12board of directors. A written summary of the committee's presentation, together
13with a copy of the audit report and a list of all criticisms made by the certified public
14accountant conducting the audit and any response of any member of the board of
15directors or any officer of the savings bank, shall be personally served or sent by
16certified mail to all members of the board of directors.
AB345-ASA1,11,23 17(4) The audit report filed with the division shall be certified by the certified
18public
accountant conducting the audit. If a savings bank fails to cause an audit to
19be made, the division shall order an audit to be made by an independent certified
20public accountant at the savings bank's expense. Instead of the audit required under
21sub. (1), the division may accept an audit or portion of an audit made exclusively for
22a deposit insurance corporation or for a financial regulator of another state if the
23home office of the savings bank is located in that state.
AB345-ASA1, s. 32 24Section 32. 215.523 (2) of the statutes is amended to read:
AB345-ASA1,12,3
1215.523 (2) Legal counsel, certified public accountants licensed or certified
2under ch. 442,
or other persons as to matters the director or officer believes in good
3faith are within the person's professional or expert competence.
AB345-ASA1, s. 33 4Section 33. 217.08 (2) of the statutes is amended to read:
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