General Assembly: 82 (2008 Regular GA) - Chapter 1106 - Regulation of practice of certified public accounting


Published: 2008-04-18

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328LAWS OF THE EIGHTY-SECOND G.A., 2008 SESSIONCH. 1105

Reduction Act, 44 U.S.C. § 3501 et seq.; the federal Regulatory Flexibility Act, 5 U.S.C. § 601 et seq.; and the federal Equal Access to Justice Act, 5 U.S.C. § 504. 3. Review information for small business stationary sources to assure such information is

understandable by the layperson. 4. Have the small business stationary source technical and environmental compliance as-

sistance program serve as the secretariat for the development and dissemination of such re- ports and advisory opinions.

Approved April 18, 2008

_________________________

CH. 1106CH. 1106

CHAPTER 1106 REGULATION OF PRACTICE OF

CERTIFIED PUBLIC ACCOUNTING

S.F. 2379

ANACT relating to the regulation of the practice of certified public accounting and providing an effective date.

Be It Enacted by the General Assembly of the State of Iowa:

Section 1. Section 542.3, subsection 1, paragraph c, Code 2007, is amended to read as fol- lows: c. An examination of prospective financial information to be performed in accordancewith

the statements on standards for attestationengagements. Forpurposes of this subsection, “the statements on standards for attestation engagements” means those standards adopted by the board, by rule, by reference to the standards developed for general application by the Ameri- can institute of certified public accountants, or other recognized national accountancy organi- zation.

Sec. 2. Section 542.3, subsection 1, Code 2007, is amended by adding the following new paragraph: NEWPARAGRAPH. d. Any engagement to be performed in accordancewith the standards

of the public company accounting oversight board.

Sec. 3. Section 542.3, subsection 1, Code 2007, is amended by adding the following new unnumbered paragraph: NEW UNNUMBERED PARAGRAPH. The standards specified in this subsection are those

standards adopted by the board, by rule, by reference to the standards developed for general application by the American institute of certified public accountants, the public company ac- counting oversight board, or other recognized national accountancy organization.

Sec. 4. Section 542.3, Code 2007, is amended by adding the following new subsections: NEWSUBSECTION. 9A. “Homeoffice” is the location specified by the client as the address

to which an attest or compilation service is directed, which may be a subunit or subsidiary or an entity or the principal office of an entity, as the board may further define by rule. NEW SUBSECTION. 15A. “NASBA” means the national association of state boards of ac-

countancy. NEW SUBSECTION. 15B. “Office” means any Iowa workplace identified or advertised to

the general public as a location where public accounting services are performed.

329 LAWS OF THE EIGHTY-SECOND G.A., 2008 SESSION CH. 1106

NEW SUBSECTION. 20A. “Practice privilege” means an authorization to practice public accounting in Iowa or for clients with a home office in Iowawithout licensure under this chap- ter, as provided in section 542.20. NEW SUBSECTION. 20B. “Principal place of business” means the primary location from

which public accounting services are performed, as the board may further define by rule. A person or firm may only have one principal place of business at any one time.

Sec. 5. Section 542.4, subsection 7, Code 2007, is amended to read as follows: 7. The boardmay join professional organizations and associations to promote the improve-

ment of the standards of the practice of accountancy and for the protection and welfare of the public. The board may provide social security numbers of licensees to NASBA provided that the numbers are solely used by NASBA for inclusion in a national database of licensees, the numbers are submitted in an encrypted format or through such alternative means as will as- sure the confidentiality of the numbers, and NASBAmaintains the confidentiality of the num- bers and agrees not to disseminate the numbers to any other person or entity.

Sec. 6. Section 542.4, subsection 9, Code 2007, is amended by adding the following new paragraph: NEW PARAGRAPH. rr. Rules on practice privilege under section 542.20.

Sec. 7. Section 542.6, subsection 6, Code 2007, is amended to read as follows: 6. The board, by rule, shall require as a condition for renewal of a certificate under this sec-

tion, by any certificate holder who performs compilation services for the public other than through a certified public accounting firm or licensed public accounting firm, that such indi- vidual undergo, no more frequently than once every three years, a peer review conducted in suchmanner as the board shall by rule specify, and such review shall include verification that such individual has met the competency requirements set out in professional standards for such services. The provisions of section 542.7, subsections 10, 11, and 12, shall apply to the peer review required in this subsection.

Sec. 8. Section 542.7, subsections 1, 3, 4, and 10, Code 2007, are amended to read as fol- lows: 1. The board shall issue or renew a permit to practice to a certified public accounting firm

that makes application and demonstrates the qualifications set forth in this section, or to a qualified certified public accounting firm originally licensed in another state that establishes an office in this state or otherwise provides services for clients in this state on a regular or re- curring basis. A certified public accounting firm licensed and located in another state or for- eign jurisdiction shall be allowed to audit a business unit located in Iowa without a permit to practice if the Iowa business unit is part of a multistate company whose principal offices are located outside of this state. A person or firm holding a permit to practice issued by this state prior to July 1, 2002, is deemed to have met the requirements of this section. a. A firmmust hold apermit issuedunder this section inorder toprovide if the firmperforms

attest services in this state or for clients having a home office in this state or to use has an office in this state and uses the title “CPAs” or, “CPA firm”, “certified public accountants”, or “certi- fied public accounting firm”. b. A firm which is not subject to paragraph “a” may practice public accounting in this state

without a permit issued under this section in conformance with section 542.20. c. A firm that holds apermit issuedunder this chapter shall designate to theboard the licens-

ee or person with a practice privilege under section 542.20 who is responsible for the proper licensure of the firm and the firm’s compliance with all applicable laws and rules of this state. If such firm has one or more offices in this state the firm shall designate to the board one or more personswho are licensed under this chapterwho are responsible for the proper registra- tion of each Iowa office of the firm and each office’s compliance with all applicable laws and rules of this state. 3. a. An applicant for initial issuance or renewal of a permit to practice as a firm shall show

330LAWS OF THE EIGHTY-SECOND G.A., 2008 SESSIONCH. 1106

that notwithstandinganyother provisionof law, a simplemajority of theownershipof the firm, in terms of financial interests and voting rights of all partners, officers, shareholders, mem- bers, andmanagers, belongs toholders of a certificate issuedbya state, and that suchpartners, officers, shareholders, members, and managers, who perform professional services in this state or for clients in this state, hold a certificate issued under section 542.6 or 542.19, or by another state if the holder has a practice privilege under section 542.20. b. A certified public accounting firmmay include a nonlicensee owner, which for purposes

of this sectionmeans an owner that does not hold a valid certificate to practice public account- ing in any state, provided all of the following occur: (1) Such firmdesignates a licenseewho is responsible for theproper registrationof the firm,

and identifies that individual to the board. (2) (1) All nonlicensee owners are active participants in the firm or an affiliated entity. (3) All nonlicensee owners participate in a program of learning designed to maintain pro-

fessional competency in compliance with rules adopted by the board which shall include re- quiring compliancewith requirements imposedby a regulatory authority chargedwith regula- tion of a nonlicensee owner’s professional or occupational license which is relevant to the firm’s services. (4) (2) All nonlicensee owners comply with all applicable rules of professional conduct

adopted by the board, and their own regulatory authority. (5) (3) Such firm complies with other requirements as established by the board by rule. c. A licensee or person with a practice privilege under section 542.20 who is responsible for

supervising attest or compilation services and signs or authorizes someone to sign the accoun- tant’s report on the financial statements onbehalf of the firmshallmeet the experienceor com- petency requirements set out in nationally recognized professional standards for such servic- es. d. A licensee or personwith a practice privilege under section 542.20who signs or authoriz-

es someone to sign the accountant’s report on the financial statements on behalf of the firm shall meet the experience or competency requirements established in paragraph “c”. e. The board may deny the issuance or renewal of, or revoke a permit, or otherwise disci-

pline the holder of a permit issued under this section if a nonlicensee owner’s professional li- cense has been revoked in any jurisdiction or a nonlicensee owner has been convicted of a crime described in section 542.5, subsection 2, if the board determines that such revocation or conviction is detrimental to the public interest andwould be a ground for discipline if appli- cable to a licensee under this chapter. 4. An applicant for initial issuance or renewal of a permit to practice as a certified public

accounting firm is required to register each office of the firm within this state with the board and to show that all attest and compilation services rendered in this state are under the charge of a person holding a valid certificate issued under section 542.6 or 542.19, or by another state if the holder has a practice privilege under section 542.20. 10. Peer review records are privileged and confidential, and are not subject to discovery,

subpoena, or other means of legal compulsion. Peer review records are not admissible in evi- dence in a judicial, administrative, or arbitration proceeding. Unless the subject of a peer re- view timely objects in writing to the administering entity of the peer review program, the ad- ministering entity shall make available to the board within thirty days of the issuance of the peer review acceptance letter the final peer review report or such peer review records as are designated by the peer review program in which the administering entity participates. The subject of a peer review may voluntarily submit the final peer review report directly to the board. Information or documents discoverable from sources other than a peer review team do not become nondiscoverable from such other sources because they are made available to or are in the possession of a peer review team. Information or documents publicly available from the American institute of certified public accountants relating to quality or peer review are not privileged or confidential under this subsection. A person or organization participat- ing in the peer review process shall not testify as to the findings, recommendations, evalua- tions, or opinions of a peer review team in a judicial, administrative, or arbitration proceeding.

331 LAWS OF THE EIGHTY-SECOND G.A., 2008 SESSION CH. 1106

Sec. 9. Section 542.8, subsection 9, paragraph a, Code 2007, is amended to read as follows: a. The licensed public accountant license shall expire in multiyear intervals as determined

by the board. The board shall notify a person licensed under this chapter of the date of expira- tionof the license and the amount of the fee required for its renewal. Thenotice shall bemailed at least one month in advance of the expiration date. A person who fails to renew a license as a licensed public accountant by the expiration date shall be allowed to do sowithin thirty days following its expiration, but the board may assess a reasonable penalty.

Sec. 10. Section 542.8, subsections 12, 13, and 19, Code 2007, are amended to read as fol- lows: 12. The board shall issue or renew a permit to practice as a licensed public accounting firm

to a person that makes application and demonstrates the qualification set forth in this section or to a licensed public accounting firm originally registered in another state that provides evi- dence that the qualifications met in the other state are substantially equivalent to those re- quired by this section. A firmmust hold a permit issued under this section in order to use the title “LPA” “LPAs” or “Licensed Public Accountants” in a firm name. a. An applicant for initial issuance or renewal of a permit to practice as a firm under this

section must show that notwithstanding any other provision of law, a simple majority of the ownership of the firm, in terms of financial interests and voting rights of all partners, officers, shareholders,members, andmanagers, belongs to the holders of a certificate or license issued by a state, and that such partners, officers, shareholders, members, and managers who per- formprofessional services in this state or for clients in this state hold a certificate issued under section 542.6 or a license issued under this section, or another state if the holder has a practice privilege under section 542.20. Toqualify for firm licensure at least onepartner, officer, share- holder, member, or manager shall hold a license under this section. b. A licensed public accounting firmmay include a nonlicensee owner, which for purposes

of this sectionmeans anowner that does not hold a valid licenseor certificate to practice public accounting in any state, provided all of the following occur: (1) Such firmdesignates a licenseewho is responsible for theproper registrationof the firm,

and identifies that individual to the board. (2) All nonlicensee owners are active participants in the firm or an affiliated entity. (3) All nonlicensee owners participate in a program of learning designed to maintain pro-

fessional competency in compliance with rules adopted by the board which shall include re- quiring compliancewith requirements imposedby a regulatory authority chargedwith regula- tion of a nonlicensee owner’s professional or occupational license which is relevant to the firm’s services. (4) (3) All nonlicensee owners comply with all applicable rules of professional conduct

adopted by the board, and their own regulatory authority. (5) (4) Such firm complies with other requirements as established by the board by rule. c. An individual licensee or person with a practice privilege under section 542.20 who is re-

sponsible for compilation services and signs or authorizes someone to sign the accountant’s report on the financial statements on behalf of the firm shall meet the competency require- ments set out in nationally recognized professional standards for such services. d. An individual licensee or personwith a practice privilege under section 542.20 who signs

or authorizes someone to sign the accountant’s report on the financial statements on behalf of the firm shall meet the competency requirements set out in nationally recognized profes- sional standards for such services. e. The board may deny the issuance or renewal of, or revoke a permit, or otherwise disci-

pline the holder of a permit issued under this section if a nonlicensee owner’s professional li- cense has been revoked in any jurisdiction or a nonlicensee owner has been convicted of a crime described in section 542.5, subsection 2, if the board determines that such revocation or conviction is detrimental to the public interest andwould be a ground for discipline if appli- cable to a licensee under this chapter.

332LAWS OF THE EIGHTY-SECOND G.A., 2008 SESSIONCH. 1106

13. An applicant for initial issuance or renewal of a permit to practice as a licensed public accounting firm is required to register each office of the firm within this state with the board and to show that all compilation services rendered in this state areunder the chargeof aperson holding a valid certificate issued under section 542.6 or 542.19, or a license issued under this section, or another state if the holder has a practice privilege under section 542.20. 19. Peer review records are privileged and confidential, and are not subject to discovery,

subpoena, or other means of legal compulsion. Peer review records are not admissible in evi- dence in a judicial, administrative, or arbitration proceeding. Unless the subject of a peer re- view timely objects in writing to the administering entity of the peer review program, the ad- ministering entity shall make available to the board within thirty days of the issuance of the peer review acceptance letter the final peer review report or such peer review records as are designated by the peer review program in which the administering entity participates. The subject of a peer review may voluntarily submit the final peer review report directly to the board. Information or documents discoverable from sources other than a peer review team do not become nondiscoverable from such other sources because they are made available to or are in the possession of a peer review team. Information or documents publicly available from the national society of accountants relating to quality or peer review are not privileged or confidential under this subsection. A person or organization participating in the peer re- view process shall not testify as to the findings, recommendations, evaluations, or opinions of a peer review team in a judicial, administrative, or arbitration proceeding.

Sec. 11. Section 542.10, subsection 1, Code 2007, is amended to read as follows: 1. After notice and hearing pursuant to section 542.11, the board may revoke, suspend for

a period of time not to exceed two years, or refuse to renew a license; reprimand, censure, or limit the scope of practice of any licensee; impose an administrative penalty not to exceed one thousand dollars per violation against an individual licensee or ten thousand dollars per viola- tion against a firm licensee; require remedial actions; or place any licensee on probation; all with orwithout terms, conditions, and in combinations of remedies, for any one ormore of the following reasons: a. Fraud or deceit in obtaining a license, which may also result in permanent revocation of

the license. b. Dishonesty, fraud, or gross negligence in the practice of public accounting. c. Engaging in any activity prohibited under section 542.13 or 542.20 or permitting persons

under the licensee’s supervision to do so. d. Violation of a rule of professional conduct adopted by the board under the authority

granted by this chapter. e. Conviction of a felony under the laws of any state of or the United States. f. Conviction of any crime, any element of which is dishonesty or fraud as provided in sec-

tion 542.5, subsection 2, under the laws of any state of or the United States. g. Cancellation, revocation, suspension, or refusal to renew the authority to practice as a

certified public accountant, licensed public accountant, or accounting practitioner, or the ac- ceptance of the voluntary surrender of a license to practice as a certified public accountant, licensed public accountant, or accounting practitioner to conclude a pending disciplinary ac- tion, by any other state or foreign authority for any cause other than failure to pay appropriate fees in the other jurisdiction. h. Suspension or revocation of the right to practice before any state or federal agency, or

the public company accounting oversight board. i. Conduct discreditable to the public accounting profession. j. Violation of section 272C.10.

Sec. 12. Section 542.13, Code 2007, is amended by adding the following new subsection: NEWSUBSECTION. 18. Nothing in this section shall be construed to prohibit the practice

of public accounting and lawful use of titles by persons or firms exercising a practice privilege in conformance with section 542.20.

333 LAWS OF THE EIGHTY-SECOND G.A., 2008 SESSION CH. 1106

Sec. 13. Section 542.14, subsections 1 and 2, Code 2007, are amended to read as follows: 1. If, as a result of an investigationunder section542.11 or otherwise, theboard believes that

a person or firm has engaged, or is about to engage, in an act or practice which constitutes or will constitute a violation of section 542.13 or 542.20, the board may make application to the district court for an order enjoining such act or practice. Upon a showing by the board that such person or firm has engaged, or is about to engage, in any such act or practice, an injunc- tion, restraining order, or other order as may be appropriate shall be granted by the court. 2. In addition to a criminal penalty provided for in section 542.15, the board may issue an

order to require compliance with section 542.13 or 542.20 or to revoke a practice privilege un- der section 542.20, andmay impose a civil penalty not to exceed one thousand dollars for each offense upon a person who is not a licensee under this chapter and who engages in conduct prohibitedby section542.13or 542.20. Eachdayof a continuedviolationconstitutes a separate offense. The board may impose a penalty up to ten thousand dollars per violation against a firm that violates section 542.13 or 542.20.

Sec. 14. NEW SECTION. 542.20 PRACTICE PRIVILEGE. 1. This section authorizes a person or firm whose principal place of business is not in this

state to practice public accounting in Iowa in person, or by telephone, mail, or electronic means without licensure under this chapter or notice to the board under the conditions de- scribed in this section. Such a person or firm must hold a valid, unexpired license in good standing in the state of its principal place of business that is substantially equivalent to a com- parable license issued in Iowa, and such a person or firmmust be licensed to lawfully perform in its principal place of business all public accounting services offered or rendered under a practice privilege in Iowa. 2. Aprovisionof this sectionor of anyother section in this chapter shall not prevent theaudi-

tor of state, the department of agriculture and land stewardship, other governmental official or body, or a client from requiring that public accounting services performed in Iowa or for an Iowa client be performed by a person or firm holding a license under this chapter. 3. The practice privilege authorized by this section is temporary and shall cease if the li-

cense in the person’s or firm’s principal place of business expires, is no longer valid or in good standing, or otherwise no longer lawfully supports the conditions of the practice privilege de- scribed in this section. 4. The boardmay revoke a practice privilege, impose a civil penalty, issue anorder to secure

compliance with this chapter or board rules, or take such additional actions as are provided in section 542.14 if a person or firm acting or purporting to act under a practice privilege vio- lates this chapter or board rules. In addition, or as an alternative to such action, the boardmay refer a complaint to the state regulatory body that issued the license to the person or firm. a. A violation of this chapter or board rules by a person or firm acting or purporting to act

under a practice privilege is a ground to deny the violator’s subsequent application for licen- sure under this chapter. b. A violation of this chapter or board rules by a person acting or purporting to act under

apractice privilege is a ground todeny a subsequent application for initial or renewal licensure under this chapter by the violator’s firm, and is a ground for discipline against such firm. c. A violation of this chapter or board rules by a person or firm acting or purporting to act

under a practice privilege is a ground for discipline against a licensee under this chapter who aided or abetted the violation. 5. A certified public accounting firm that is licensed in the state of its principal place of busi-

ness and is not required to hold an Iowa firm license under section 542.7 may practice in this state without a firm license under this chapter or notice to the board if the firm’s practice in this state is performed by individuals who hold a license under this chapter or who practice in conformance with subsection 6, under the following conditions: a. The firm shall not perform attest services in Iowa or for a client having a home office in

Iowa.

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b. The firm shall not have an office in Iowa which uses the title “CPAs”, “CPA firm”, “certi- fied public accountants”, or “certified public accounting firm”. c. The firm may perform compilation services only if it complies with the ownership and

peer review requirements of section 542.7. d. The firm shall not make any representation tending to falsely indicate that the firm is li-

censed under this chapter. e. The firm, upon a client’s or prospective client’s request, shall provide accurate informa-

tion on the state or states of licensure, principal place of business, contact information, and manner in which licensure status can be verified. f. The firm shall complywith all professional standards, laws, and rules that apply to licens-

ees performing the same professional services. 6. An individual who is licensed in the state of the individual’s principal place of business

may exercise the privileges of a certificate holder of this state without obtaining a certificate under this chapter or providing notice to the board, under the following conditions: a. The individual must meet the criteria for substantial equivalency reciprocity under sec-

tion 542.19, subsection 1, paragraph “a”, “b”, or “c”. b. The individual shall not have anoffice in Iowaatwhich the individual uses the title “CPA”.

The individual may, however, perform public accounting services using the title “CPA” if per- formedat theoffice of a certifiedpublic accounting firmor licensedpublic accounting firm that holds a permit to practice under section 542.7 or 542.8, or at the office of a business entity that is not required to hold a firm permit under section 542.7 or 542.8. c. An individual who provides attest services in Iowa or for a client having a home office in

Iowa must practice through a certified public accounting firm that is licensed under section 542.7. d. An individual who provides compilation services in Iowa or for a client having a home

office in Iowa must comply with the peer review provisions of section 542.6, subsection 6, or provide such services through a certified public accounting firm, a licensed public accounting firm, or substantially equivalent firm that is validly licensed in the firm’s principal place of business and is subject to the peer review and ownership provisions of section 542.7 or 542.8. e. The individual shall not make any representation tending to falsely indicate that the indi-

vidual is licensed under this chapter. f. The individual, upona client’s or prospective client’s request, shall provide accurate infor-

mation on the state or states of licensure, principal place of business, contact information, and manner in which licensure status can be verified. g. The individual shall comply with all professional standards, laws, and rules that apply to

licensees performing the same professional services. 7. As a condition of exercising the practice privilege provided in subsection 5 or 6, the per-

son or firm does all of the following: a. Consents to the personal and subject matter jurisdiction and regulatory authority of the

board, including but not limited to the board’s jurisdiction to revoke the practice privilege or otherwise take action under section 542.14 for any violation of this chapter or board rules. b. Appoints the regulatory body of the state that issued the firm or individual license as the

agent uponwhom process may be served in any action or proceeding by the board against the firm or person. c. Agrees to supply the board, upon the board’s request and without subpoena, such infor-

mation or records as licensees are similarly required to provide the board under this chapter regarding themselves or, in the case of a firm, regarding the individuals practicing through the firm, includingbut not limited to licensure status in all jurisdictions; qualifications for substan- tial equivalency reciprocity under section 542.19, subsection 1, paragraph “a”, “b”, or “c”; loca- tion of principal place of business and all other offices; criminal and disciplinary background; malpractice settlements and judgments; firm ownership andwhen applicable, information re- garding nonlicensee owners; whether public accounting services are subject to peer review; proof of completion of peer review, when applicable; qualifications to supervise attest servic- es, when applicable; and timely response to inquiries regarding complaints and investigations conducted under this chapter.

335 LAWS OF THE EIGHTY-SECOND G.A., 2008 SESSION CH. 1107

d. Agrees to promptly cease offering or rendering public accounting services in this state or for clients having a home office in this state if the license in the person’s for firm’s principal place of business expires or is otherwise no longer valid or in good standing, or if any of the conditions for exercising the practice privilege are no longer satisfied, or if the board revokes the practice privilege. 8. A licensee of this state is subject to discipline in this state based on a violation of a compa-

rable practice privilege afforded by another state. 9. The board shall adopt rules on the manner in which this section applies to persons or

firms that hold a lapsed Iowa license, have been subject to discipline in Iowa, have surrendered an Iowa license, or have otherwise held an Iowa license at one point in time that is no longer valid, active, or in good standing, and to persons or firms that have been convicted of a crime, the subject of discipline or denied licensure in any jurisdiction, or thatwould otherwise be sub- ject to license denial or discipline if a license applicant or licensee in Iowa.

Sec. 15. EFFECTIVE DATE. This Act takes effect July 1, 2009.

Approved April 18, 2008

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CH. 1107CH. 1107

CHAPTER 1107 COLLEGE STUDENT AID COMMISSION MEMBERSHIP

H.F. 2103

AN ACT relating to appointments to the college student aid commission and including an ef- fective date and applicability provision.

Be It Enacted by the General Assembly of the State of Iowa:

Section 1. Section 261.1, subsections 3 and 4, Code 2007, are amended to read as follows: 3. a. Amember Twomembers of the senate, one to be appointed by the president of the sen-

ate, after consultation with themajority leader and one to be appointed by theminority leader of the senate, to serve as an ex officio, nonvoting member for a term of four years beginning on July 1 of the year of appointment members. b. A member Two members of the house of representatives, one to be appointed by the

speaker of the house of representatives and one to be appointed by the minority leader of the house of representatives, to serve as an ex officio, nonvoting member for a term of four years beginning on July 1 of the year of appointment members. c. Themembers of the senate and house of representatives shall serve at the pleasure of the

appointing legislator for a term beginning upon the convening of the general assembly and expiring upon the convening of the following general assembly, or when the appointee’s suc- cessor is appointed, whichever occurs later.1

Sec. 2. Section 261.1, subsection 5, unnumbered paragraph 1, Code 2007, is amended to read as follows: Eight additional members to be appointed by the governor. One of the members shall be

selected to represent private colleges, private and universities and private junior colleges lo- cated in the state of Iowa. When appointing this member, the governor shall give careful con- sideration toanypersonorpersonsnominatedor recommendedbyanyorganizationor associ- ationof someor all private colleges, private anduniversities andprivate junior colleges located in the state of Iowa. One of the members shall be selected to represent community colleges

___________________ 1 See chapter 1191, §134 herein