ALJDEC decisions subject to certification as final

19F-2019.022-ACY · State Board of Accountancy · 2018-10-22

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: October 2, 2018. APPEARANCES: The Arizona State Board of Accountancy (“the Board”) was represented by Scott Donald, Esq., Assistant Attorney General. Jeff Hass (“Respondent”) failed to appear. ADMINISTRATIVE LAW JUDGE: Kay Abramsohn _________________________________________________________________

FINDINGS OF FACT 1. On August 16, 2018, the Board issued a Complaint and Notice of Hearing setting this matter for an evidentiary hearing at 9:00 a.m. on October 2, 2018, before the Office of Administrative Hearings (“OAH”), an independent state agency.

2. The Complaint and Notice of Hearing provided that the issue to be decided was “whether good cause exists to revoke, suspend or take any other disciplinary action against [Certified Public Accountant (“CPA”)] Certificate No. 16766-R issued to [Respondent].”

3. The Board sent the Complaint and Notice of Hearing via United States regular and certified mail to Respondent at his address of record with the Board.

4. Respondent did not request to appear telephonically at the hearing and did not request that the hearing be continued. Although the start of the duly noticed hearing was delayed to allow Respondent additional travel time to arrive, Respondent did not appear and did not contact OAH to request that the start of the hearing be further delayed. Consequently, Respondent did not present any evidence to be considered.

5. The Board presented the testimony of Christopher Rasmussen, Assistant Director of Regulation and Compliance, and submitted three exhibits. Mr. Rasmussen was familiar with this matter because he had reviewed the file in this matter.

6. On May 8, 2018, the Board sent Respondent, by regular and certified mail, a letter regarding having selected Respondent for continuing professional education (“CPE”) audit.[1] The letter alerted Respondent to the fact that he needed to submit a certificate of completion for each of the reported courses within 30 days. The letter further indicates that a failure to respond within 30 days is a violation of Arizona Administrative Code (“A.A.C.”) R4-1-455.03(C)[2] and could result in the disciplinary action of suspension of CPA Certificate No. 16766-R pursuant to Arizona Revised Statutes (“A.R.S.”) § 32-741.02.

7. Mr. Rasmussen indicated that, although Respondent had reported taking multiple continuing professional educational courses,[3] he had not, to date, provided verification of the completion of the courses, with certificates.

CONCLUSIONS OF LAW 1. The Board has personal and subject-matter jurisdiction over Respondent pursuant to A.R.S. § 32-701 et seq. and A.A.C. R4-1-101 et seq. The Board has the authority to discipline Respondent pursuant to A.R.S. § 32-741. The Board may discipline a registrant for a violation of any decision, order, or rule promulgated by the Board pursuant to A.R.S. § 32-741(A)(9). 2. The Board bears the burden of proof to establish cause to discipline Respondent by a preponderance of the evidence.[4] “A preponderance of the evidence is such proof as convinces the trier of fact that the contention is more probably true than not.”[5] 3. A.A.C. R4-1-455.03(D) provides that a registrant shall file a written response to a communication from the Board within 30 days of the date of the mailing of that communication. 4. A.A.C. R4-1-453(F) provides that a registrant maintain for three years CPE information, including course outlines and certificates of completion. 5. A.A.C. R4-1-453(G) provides that the Board may conduct audits of a registrant’s CPE information. 6. A.R.S. § 32-741.02(A) provides that the Board shall suspend the certificate of a registrant who fails to provide proof of compliance with the Board’s CPE requirements. 7. The Board established that Respondent failed to file a timely written response as required by A.A.C. R4-1-455.03 (D) and that Respondent failed to verify compliance with CPE requirements by providing certifications of completion as required by A.A.C. R4-1-453(F), in violation of A.R.S. § 32-741(A)(9). 8. While A.R.S. § 32-741(A) authorizes the Board to revoke or suspend Respondent’s certificate, A.R.S. § 32-741.02(A) provides that the Board shall suspend the certificate of a registrant who fails to provide proof of compliance with the Board’s CPE requirements. RECOMMENDED ORDER Based on the foregoing, it is recommended that, on the effective date of the final order, Certified Public Accountant Certificate No. 16766-R previously issued to Respondent Jeff Hass shall be revoked and it is further recommended that Respondent be assessed fees and costs associated with the disciplinary process. In the event of certification of the Administrative Law Judge Decision by the Director of the Office of Administrative Hearings, the effective date of the Order will be five days from the date of that certification. Done this day, October 22, 2018

/s/ Kay Abramsohn Administrative Law Judge

Transmitted electronically to:

Monica L. Petersen, Executive Director Arizona State Board of Accountancy ----------------------- [1] See Exhibit 1; the signature on the certified mail receipt as having received the letter cannot be deciphered. [2] The most current citation is (“A.A.C.”) R4-1-455.03(D). [3] See Exhibit 3. [4] See A.R.S. § 41-1092.07(G)(2); A.A.C. R2-19-119; see also Vazanno v. Superior Court, 74 Ariz. 369, 372, 249 P.2d 837 (1952). [5] Morris K. Udall, Arizona Law of Evidence § 5 (1960).

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Office of Administrative Hearings 1740 West Adams Street, Lower Level Phoenix, Arizona 85007 (602) 542-9826