CO Code § 12-100-124 (2021)
2021 Colorado Code|Title 12 - Professions and Occupations|Article 100 - Accountants|§ 12-100-124. Investigations - Findings - Board Actions - Confidentiality of Complaints

  The board, on its own motion based on reasonable grounds or on the signed, written complaint of any person, may investigate any person who has engaged, is engaging, or threatens to engage in any act or practice that constitutes a violation of any provision of this article 100. Actions under this section are governed by section 12-20-403.      Complaints of record that are dismissed by the board and the results of investigation of the complaints shall be closed to public inspection.    Upon completing an investigation, the board shall make one of the following findings:   The complaint is without merit, and no further action need be taken.    There is no reasonable cause to warrant further action.    The investigation discloses an instance of conduct that does not warrant formal action and should be dismissed, but the investigation discloses indications of possible errant conduct that could lead to serious consequences if not corrected. If this finding is made, the board shall send a confidential letter of concern to the licensee or registrant in accordance with section 12-20-404 (5).    The investigation discloses an instance of conduct that does not warrant formal action but should not be dismissed as being without merit. If this finding is made, the board may send a letter of admonition in accordance with section 12-20-404 (4) to the licensee or registrant by certified mail.    The investigation discloses facts that warrant further proceedings by formal complaint. If this finding is made, the board shall refer the complaint to the attorney general for preparation and filing of a formal complaint.       The board shall conduct all proceedings pursuant to subsection (1) of this section and this subsection (2) expeditiously and informally so that no licensee or registrant is subjected to unfair and unjust charges and that no complainant is deprived of the right to a timely, fair, and proper investigation of a complaint.       Complaints of record that are not dismissed by the board and are the results of investigations of the complaints shall be closed to public inspection, and any meeting concerning the complaints shall be closed to the public during the investigatory period and until a stipulated agreement is reached between the applicant or certificate holder and the board or until notice of hearing and charges are filed and served on an applicant or certificate holder. Except for confidential books of account, financial records, advice, reports, or working papers provided by the client, the certified public accountant, or the certified public accounting firm, the board's records and papers shall be subject to the provisions of sections 24-72-203 and 24-72-204 regarding public records and confidentiality.      History. Source: L. 2019: Entire title R&RE with relocations,(HB 19-1172), ch. 136, p. 815, § 1, effective October 1; (2)(b)(I) amended,(SB 19-155), ch. 235, p. 2337, § 19, effective October 1.    Editor's note:    This section is similar to former § 12-2-126 as it existed prior to 2019.    Before its relocation in 2019, this section was amended in SB 19-155. Those amendments were superseded by the repeal and reenactment of this title 12, effective October 1, 2019. For those amendments to the former section in effect from July 1, 2019, to October 1, 2019, see SB 19-155, chapter 235, Session Laws of Colorado 2019.     ANNOTATION   Annotator's note. The following annotations include cases decided under former provisions similar to this section.   An entity that has voluntarily relinquished its license is subject to discipline by the state board of accountancy, and, therefore, the board has jurisdiction to issue a subpoena duces tecum to the former licensee after the license is relinquished. Colo. State Bd. of Accountancy v. Arthur Andersen LLP, 116 P.3d 1245 (Colo. App. 2005).   The requirement that the state board investigate a member of the accounting profession's conduct and reach a tentative conclusion as to the gross negligence and dishonesty of that conduct is a proper function to be exercised prior to the bringing of charges. McGee v. State Bd. of Accountancy, 169 Colo. 87 , 453 P.2d 800 (1969).   The board of accountancy must make an investigation of complaints prior to presenting a formal charge of misconduct. McGee v. State Bd. of Accountancy, 169 Colo. 87 , 453 P.2d 800 (1969).   To say that making such an investigation thereby disqualifies the board is absurd. McGee v. State Bd. of Accountancy, 169 Colo. 87 , 453 P.2d 800 (1969).   An administrative body would be derelict in its duties if it failed to conduct a preliminary investigation to determine whether there was some sound basis for a proposed charge against the person over whom it had supervision. McGee v. State Bd. of Accountancy, 169 Colo. 87 , 453 P.2d 800 (1969).   The board's investigatory power does not create an exception to the accountant-client privilege created in § 13-90-107 . Until the general assembly chooses to create an exception to accountant-client privilege, the board must obtain client consent for disclosure of any information otherwise privileged by the accountant-client relationship. Colo. Bd. of Accountancy v. Zaveral Boosalis Raisch, 960 P.2d 102 (Colo. 1998).