Subchapter 08I – Revocation of Certificates and Other Disciplinary Actions
Section .0100 – General Provisions
08I .0101 Disciplinary Action
(a) Any person may petition the Board for appropriate disciplinary action against a CPA.
(b) The petition shall set forth in simple language the facts upon which the petition is based. It shall bear an affidavit of the petitioner stating that he or she believes the facts stated in the petition are true and that he or she is prepared to prove them at a hearing.
(c) The petition shall be filed in the office of the Board. The Board’s professional standards staff shall conduct any appropriate investigation. Based upon its investigation, the professional standards staff may prepare a proposed Hearing Notice. A Professional Standards Committee, appointed by the President of the Board, shall determine whether the allegations in the proposed Hearing Notice, if proven, would warrant a contested case proceeding pursuant to G.S. 150B 38 – 150B 42.
(d) The Board may publish or announce the disciplinary action against a CPA in such manner and for such period as it deems appropriate.
08I .0102 Procedure When Petition against Board Member or Employee
If the person against whom a petition for disciplinary action is filed is a Board member or a Board employee, the Secretary Treasurer or Executive Director shall immediately notify that person and every member of the Board of the petition. The person against whom the petition was filed shall not participate in considering or acting on the petition.
08I .0104 Modification of Discipline and New Certificate
(a) A person or CPA firm that has been disciplined by the Board may apply to the Board for modification of the discipline at any time after the effective date of the Board’s decision imposing it; however, if any previous application has been made with respect to the same discipline, no additional application shall be considered before the lapse of one year following the Board’s decision on that previous application. Provided, however, that an application to modify permanent revocation shall not be considered until after five years from the date of the original discipline, nor more often than three years after the Board’s last decision on any prior application for modification.
(b) The application for modification of discipline or for a new certificate shall be in writing, shall set out and, as appropriate, shall demonstrate good cause for the relief sought. The application for an individual shall be accompanied by at least three supporting recommendations, made under oath, from CPAs who have personal knowledge of the activities of the applicant since the discipline was imposed. The application for a CPA firm shall be accompanied by at least three supporting recommendations, made under oath, for each CPA partner, CPA member, or CPA shareholder from CPAs who have personal knowledge of the activities of the CPA partner, CPA member, or CPA shareholder since the discipline was imposed.
(c) “Good cause” as used in Paragraph (b) of this Rule means that the applicant is completely rehabilitated with respect to the conduct which was the basis of the discipline. Evidence demonstrating such rehabilitation shall include evidence:
(1) that such person has not engaged in any conduct during the discipline period which, if that person had been licensed or registered during such period, would have constituted the basis for discipline pursuant to G.S. 93-12(9);
(2) that, with respect to any criminal conviction which constituted any part of the previous discipline, the person has completed the sentence imposed; and
(3) that, with respect to a court order, restitution has been made to any aggrieved party.
(d) In determining good cause, the Board may consider all the applicant’s activities since the disciplinary penalty was imposed, the offense for which the applicant was disciplined, the applicant’s activities during the time the applicant was in good standing with the Board, the applicant’s rehabilitative efforts, restitution to damaged parties in the matter for which the penalty was imposed, and the applicant’s general reputation for truth and professional probity. For the purpose of this Paragraph, “applicant” shall, in the case of a CPA firm, include CPA partners, CPA members, or CPA shareholders.
(e) Any person who applies for a modification of discipline and for a new certificate after revocation shall, in addition to the other requirements of this Section, comply with all qualifications and requirements for initial certification which exist at the time of the application.
(f) No application for a new certificate or for modification of discipline shall be considered while the applicant is serving a sentence for any criminal offense. Serving a sentence includes incarceration, probation (supervised or unsupervised), parole, or suspended sentence, any of which are imposed as a result of having been convicted or plead to a criminal charge.
(g) An application shall ordinarily be ruled upon by the Board on the basis of the recommendations and evidence submitted in support thereof. However, the Board may make additional inquiries of any person or persons, or request additional evidence it deems appropriate.
(h) As a condition for a new certificate or modification of discipline, the Board may impose terms and conditions it considers suitable.
08I .0105 Revocation of Certificates
(a) When a certificate is revoked either for a specific period of time or permanently, the certificate holder shall return the certificate to the Board office within 15 days of receipt of notice of revocation.
(b) Pursuant to the provisions of 21 NCAC 08I .0104, the Board may issue a new certificate under a new number to anyone whose certificate has been revoked.