The House Judiciary Committee approved a rewrite of SB 640 on June 12. The revised bill aims to strengthen transparency and ensure compliance with antitrust laws among all occupational licensing boards, including the NC State Board of CPA Examiners.
The bill is a response to a decision by the U.S. Supreme Court in North Carolina State Board of Dental Examiners v. Federal Trade Commission. In the 2015 ruling, the Court held that a board controlled by industry members and lacking active state supervision could be subject to antitrust challenges.
KEY PROVISIONS OF THE BILL
- Antitrust Training: All occupational licensing board members, including those serving on the State Board of CPA Examiners, would be required to receive training on antitrust law and state action immunity as part of their regular training.
- Complaint Resolution Procedures: The bill mandates the establishment of standardized rules for receiving and resolving complaints, taking disciplinary actions against licensees, and pursuing enforcement actions against unlicensed individuals.
- Investigating Unlicensed Activity: The legislation clarifies the authority of boards to investigate unlicensed activity and notify individuals of potential violations. Importantly, such notifications wouldn’t constitute a finding of guilt but may express the board’s concern and outline potential legal consequences.
- Legal Actions: The bill streamlines legal procedures for obtaining injunctive relief against unlicensed activity. It authorizes boards to appear in court and seek injunctive orders, while encouraging them to resolve jurisdictional disputes informally.
- Standardized Complaint Process: Each board will be required to implement a standardized complaint process with specific requirements.
IMPACT ON CPAS
Many of the bill’s provisions are already in place at the State Board of CPA Examiners. By ensuring board members use established, clear procedures and are well-versed in antitrust laws, CPAs are assured of a transparent licensing environment. The State Board already employs a standardized complaint process that provides a clearer path for individuals seeking to address concerns.
SB 640 has been referred to the House Rules Committee to be scheduled for a floor vote. If approved by the House, it must be sent back to the Senate for a concurrence vote.
NCACPA will continue to monitor the progress of this bill and provide updates to its members. If you have questions about this issue or other policy matters, please contact NCACPA Director of Advocacy Robert Broome, CAE.