KRS 325.340: Revocation, suspension, or refusal to renew or issue license -- Private

reprimand for minor violation -- Administrative regulations.

(1) After notice and hearing as provided in KRS Chapter 13B, the board may revoke,

suspend, impose a fine not t o exceed one thousand dollars ($1,000) for each

violation of a provision of this chapter or administrative regulations promulgated by

the board under this chapter, refuse to issue or renew any license, censure, place on

probation, or issue a private reprim and to any person or firm, all with or without

terms, for any one (1) or any combination of the following causes:

(a) Fraud or deceit in obtaining a license issued under this chapter;

(b) Dishonesty, fraud, or negligence while performing any regulated acti vity,

including fiscal dishonesty or an intentional breach of fiduciary responsibility

of any kind, and also including but not limited to the following:

1. Knowing preparation, publication, or dissemination of false, fraudulent,

or materially misleading fi nancial statements, reports, or information;

and

2. Embezzlement, theft, misappropriation of funds or property, or

obtaining money, property, or other valuable consideration by fraudulent

means or false pretenses;

(c) Violation of any of the provisions of this chapter or administrative regulations

promulgated by the board under this chapter or violation of any order of the

board;

(d) Violation of a rule of professional conduct promulgated by the board;

(e) Conviction of any felony, or of any crime in which dishonesty or fraud is an

element, under the laws of any state or of the United States. Conviction

includes, but is not limited to, pleading no contest, entering an Alford plea, or

entry of a court order suspending the imposition of a criminal penalty to a

crime, if in accordance with KRS Chapter 335B;

(f) Cancellation, revocation, suspension, or refusal to renew the authority to

practice as a certified public accountant or a public accountant in any state;

(g) Suspension or revocation of the right to pract ice before any state or federal

agency or the Public Company Accounting Oversight Board or its successor;

(h) Conduct discreditable to the accounting profession; or

(i) Failure to respond to a board inquiry regarding any licensing or complaint

matter.

(2) In any proceeding in which a remedy provided by subsection (1) of this section is

imposed, the board may also require the respondent to pay the costs of the

investigation and all proceedings.

(3) A private reprimand shall not be subject to disclosure to th e public under KRS

61.878(1)(l). A private reprimand shall not constitute disciplinary action, but may

be used by the board for statistical purposes, or in subsequent disciplinary actions

against the same licensee.

(4) (a) Any licensee disciplined under th is section for a minor violation may request

in writing that the board expunge the minor violation from the licensee's

record.

(b) A request for expungement may be filed no sooner than ten (10) years after

the date on which the licensee completed the disci plinary sanctions imposed

and may only be filed if the licensee has not been disciplined, within this same

period of time, for any subsequent violation of the same nature.

(c) No licensee may have his, her, or its record expunged under this section more

than once.

(d) A minor violation is one that does not:

1. Demonstrate a serious inability to practice the profession;

2. Result in economic harm to a person; or

3. Create a significant threat of such harm.

(5) The board shall promulgate administrative regula tions under KRS Chapter 13A to

establish procedures to expunge a minor violation.