Relating to
Updating accounting and auditing practices and standards, clarifying licensure criteria, and general cleanup.
Rule Type
Permanent.
1. Finding/Nature of Emergency (Emergency Rule Only)
N/A
2. Detailed Description of the Objective of the Proposed Rule
One chapter in this series, Chapters
Accy 1 to
9, was last updated in 2004; some chapters have not been updated to reflect current practices or adopted standards in the accounting profession since as far back as 1974. Incorporate current accounting, auditing practices and standards, and references from the American Institute of Certified Professional Accountants (AICPA), AICPA Auditing Standards Boards, National State Boards of Accountancy (NASBA), and other professional organizations. Additional references to professional organizations or standards are proposed to reflect the standards currently in use; these may include but are not limited to: The Uniform Accountancy Act (UAA), Public Company Accounting Oversight Board (PCAOB), international accounting standards, and Generally Accepted Accounting Principles (US GAAP).
Other areas proposed to be updated may include: professional conduct; firm mobility and notification requirements; equivalent education criteria; examination review; codifying reinstatement practices; attest and peer reviews; reciprocity and equivalent certificates; acceptable examination providers, and school accreditation. In addition, the proposal may include creating definitions, revising or repealing Appendix A ch.
Accy 9; correcting inconsistencies between chapters or chapter sections; providing consistency in terminology and format; updating statutory references; and reflecting internal process efficiencies. Consequently, the objectives of this rule-making order may be incorporated into one or more rulemaking projects.
3. Description of the Existing Policies Relevant to the Rule, New Policies Proposed to be Included in the Rule, and an Analysis of Policy Alternatives
The proposed changes will serve to clarify, correct, or repeal certain provisions to recognize contemporary standards and practices of the accounting profession, conforming to codified rules and practices of adjacent states, as a well as modifying reinstatement and equivalent education issues.
Not evaluating and updating Chapters
Accy 1 to
9 would create confusion amongst licensees practicing in more than one state. An update would provide the department the opportunity to have rules reflecting national standards widely-accepted and applied throughout the accounting industry.
4. Detailed Explanation of Statutory Authority for the Rule (Including the Statutory Citation and Language)
Section
15.08 (5) (b), Stats., requires all examining boards to “
…promulgate rules for its own guidance and for the guidance of the trade or profession to which it pertains, and define and enforce professional conduct and unethical practices not inconsistent with the law relating to the particular trade or profession."
Section
227.11 (2) (a), Stats., authorizes all agencies to promulgate rules interpreting the statutes it enforces or administers, when deemed necessary to effectuate the purpose of such statutes.
Section
442.01 (1), Stats.,“
…the examining board shall promulgate rules that adopt by reference
…" a number nationally-recognized standards boards.
Section
442.087 (3), Stats., “
Rules. The examining board shall promulgate rules that describe the peer review required to renew a firm's license under sub. (2). The rules shall include requirements for the examining board to approve one or more persons to conduct the peer reviews. The rules shall also require each person approved by the examining board to conduct peer reviews to periodically report to the examining board on the effectiveness of the peer reviews conducted by the person and to provide the examining board with a listing of all firms that have undergone peer review conducted by the person."
5. Estimate of Amount of Time that State Employees Will Spend Developing the Rule and of Other Resources Necessary to Develop the Rule
The department estimates that approximately 210 hours will be needed to perform the review and develop any needed rule changes. This time includes meeting with the Accounting Examining Board, drafting the rule changes and processing the changes through public hearing, legislative review, and adoption. The department will assign existing staff to perform the review and develop the rule changes; no other resources will be needed.
6. List with Description of all Entities that may be Affected by the Proposed Rule
Licensees (CPAs) and firms (corporations and establishments) and their clientele.
7. Summary and Preliminary Comparison with any Existing or Proposed Federal Regulation that is Intended to Address the Activities to be Regulated by the Proposed Rule
An Internet-based search comparing these requirements resulted in
12 USC 1831n — Accounting objectives, standards, and requirements. The only references found regulating the use of uniform accounting standards related solely to the banking industry. No mention of CPA licensure or any specific nationally-recognized standards were found to be required or proposed to be required at the federal level.
8. Anticipated Economic Impact of Implementing the Rule (Note if the Rule is Likely to Have a Significant Economic Impact on Small Businesses)
The Department believes that proposed revisions under Chapters
Accy 1 to
9 will have a minimal economic impact on small business.
9. Contact Person
Jean MacCubbin, (608) 266-0955.
Safety and Professional Services —
Real Estate Examining Board
This statement of scope was approved by the Governor on July 18, 2013.
Rule No.
Relating to
Inactive real estate licenses and apprenticeships.
Rule Type
Permanent.
1. Finding/Nature of Emergency (Emergency Rule Only)
N/A
2. Detailed Description of the Objective of the Proposed Rule
The Real Estate Examining Board in reviewing their rules, chs.
REEB 11 to
26, and responding to their charge in Executive Order 61, determined that these two chapters be brought to the attention of department staff for future rule-making projects.
Section
452.09 (5), Stats., deals with apprenticeships in the real estate profession. Correspondingly, ch.
REEB 22 allows a sponsoring broker to indenture an apprentice under a temporary salesperson permit for a period of one year and such permit is non-renewable. This chapter outlines various steps regarding application, supervision, compensation, contracts and duties. The Board and the department report that only one application has been received in the past 18-month period; therefore, ch. REEB 22, apprentices, is proposed to be repealed.
In addition, s.
452.12 (6), Stats., states that the ability is granted to a licensee, except for a time-share salesperson, to apply for an inactive license, but this ability has sunset as of October 31, 1995. Therefore, ch. REEB 26, inactive licenses, is proposed to be repealed.
Due to the repeal of these two chapters, there may be cross references or code citations in other chapters in this series requiring correction. These corrections in chs.
REEB 11 to
26 are proposed to be included in this or subsequent rule-making orders; other corrections may include correcting typographical and formatting errors.
3. Description of the Existing Policies Relevant to the Rule, New Policies Proposed to be Included in the Rule, and an Analysis of Policy Alternatives
The portion of the Statutes allowing for inactive licensees, s.
452.12 (6), Stats., sunset on October 31, 1995. The portion of the Statutes allowing for the application of apprenticeships, s.
452.09 (5), Stats., is used rarely and the process of application, approval and oversight is complicated and inefficient to all parties involved.
By not repealing these two chapters, the rules relating to real estate brokers and salespersons will continue to be out-of-date or overly cumbersome.
4. Detailed Explanation of Statutory Authority for the Rule (Including the Statutory Citation and Language)
Section
15.08 (5) (b), Stats.:
“Shall promulgate rules for its own guidance and for the guidance of the trade or profession to which it pertains, and define and enforce professional conduct and unethical practices not inconsistent with the law relating to the particular trade or profession."
Section
227.11 (2), Stats.: “Rule-making authority is expressly conferred as follows: (a) Each agency may promulgate rules interpreting the provisions of any statute enforced or administered by the agency, if the agency considers it necessary to effectuate the purpose of the statute, but a rule is not valid if the rule exceeds the bounds of correct interpretation."
Section
452.07 Stats.: “Rules. (1) The board shall promulgate rules for the guidance of the real estate profession and define professional conduct and unethical practice.
(1m) The board shall promulgate rules that
specify the supervisory duties of brokers under s.
452.12 (3)."
Section
452.12 (6), Stats.: Most of this subsection relates to inactive licenses, how inactive licensees may apply for reinstatement and the limitations on practicing real estate while in inactive status; all of this paragraph either sunset on October 31, 1995, or allowed application prior to November 1, 1990, with a 5-year limit.
5. Estimate of Amount of Time that State Employees Will Spend Developing the Rule and of Other Resources Necessary to Develop the Rule
The staff time needed to develop the rules is expected to be about 75 hours. This includes coordinating the rule-making process with the Board's meeting schedule, conducting research, drafting and processing the proposed rules through public hearings, legislative review, and adoption. There are no other resources necessary to develop the rules.
6. List with Description of all Entities that may be Affected by the Proposed Rule
Licensees.
7. Summary and Preliminary Comparison With any Existing or Proposed Federal Regulation that is Intended to Address the Activities to be Regulated by the Proposed Rule
An Internet based search of the Code of Federal Regulations (CFR) and the Federal Register did not find any federal regulations relating to application for inactive or apprenticeship licenses in the real estate industry.
8. Anticipated Economic Impact of Implementing the Rule (Note if the Rule is Likely to Have a Significant Economic Impact on Small Businesses)
It is anticipated that there will be no economic impact on small business.
9. Contact Person
Jean MacCubbin, (608) 266-0955.
Safety and Professional Services —
Real Estate Examining Board
This statement of scope was approved by the Governor on July 18, 2013.
Rule No.
Relating to
Obligation to furnish copies and maintain records, and trust accounts.
Rule Type
Permanent.
1. Finding/Nature of Emergency (Emergency Rule Only)
N/A
2. Detailed Description of the Objective of the Proposed Rule
Chapter
REEB 15, Real Estate Broker's Obligation to Furnish Copies and Maintain Records, was created in November 1985 (as ch.
RL 15) and with the exception of a minor correction in authority and chapter renumbering, there have been no substantial changes since this rule became effective. At this time the Real Estate Examining Board (the Board) intends in this proposed revision to make minor corrections in format, update the chapter to reflect any statutory changes, provide clarification where appropriate and allow new and current technology in records retention.
Chapter
REEB 18, Trust Accounts, is added to this scope statement as provisions for maintaining records in ch.
REEB 15 may allow the retention of records in electronic formats and the use of current electronic software. The bookkeeping section, s.
REEB 18.13, may be revised to allow similar technology as in ch.
REEB 15. In addition, depository institutions currently provide options for electronic bank statements and exporting such financial data to bookkeeping software. When requested by the department or board as in s.
REEB 18.036, these records may be determined to be in an acceptable format. With the exception of renumbering and minor changes, this chapter has not been revised since 1994.
3. Description of the Existing Policies Relevant to the Rule, New Policies Proposed to be Included in the Rule, and an Analysis of Policy Alternatives
Existing rules relating to the retention of certain records that are used in the practice of real estate can be found in s.
REEB 15.04. This section requires a real estate broker to retain for at least 3 years exact copies of documents and correspondence utilized in connection with any transaction. These documents and correspondence must be made available to the Department of Safety and Professional Services (the department) or the Board for inspection and copying upon request. The proposed rule may clarify what comprises a record. In addition, the proposed revision intends to provide the broker the ability to retain records in electronic format, stipulate retention times and offer possible discipline for not providing such records when so requested.
Existing rules relating to bookkeeping systems and examination of bank records are found in ch.
REEB 18. It is widely known that ledger and journaling financial software is widely utilized in the real estate industry; the Board intends that these rule revisions recognize current practice and modernize the provisions for records and recordkeeping.
No new policies are expected to be created in these revisions. The alternative to not updating these chapters is that record storage and current prescribe bookkeeping formats may continue to be costly and duplicative.
4. Detailed Explanation of Statutory Authority for the Rule (Including the Statutory Citation and Language)
• Section
15.08 (5) (b), Stats.: This section requires any examining board to promulgate rules for their own guidance or the guidance of respective trade or profession.
• Section
227.11 (2), Stats.: This section confers that each agency has rule-making powers interpreting the authority to enforce and administer as provided in the statues.
• Section
452.07, Stats.: This section provides the Real Estate Examining Board the express authority to draft and approve rules relating to the guidance of the real estate profession. “S.
452.07 Rules. (1) The board shall promulgate rules for the guidance of the real estate profession and define professional conduct and unethical practice."
• Section
452.13, Stats.: This section outlines procedures for brokers regarding their trust accounts, interest-bearing accounts and furnishing financial documents to the department, board or the Department of Administration on request.
5. Estimate of Amount of Time that State Employees Will Spend Developing the Rule and of Other Resources Necessary to Develop the Rule
The staff time needed to develop the rules is expected to be about 210 hours, depending on the complexity. This includes coordinating the rule-making process with the Board, research, rule drafting, and processing the rules through public hearings, legislative review, and adoption. There are no other resources necessary to develop the rules.
6. List with Description of all Entities that may be Affected by the Proposed Rule
