HB103 Alabama 2012 Session

Summary

Primary Sponsor

Paul DeMarco

Republican

Session

Regular Session 2012

Title

Boards and Profession, redefine the term attest, add new sections regarding privity statute of limitations, venue, and expert witnesses relating to accountants, Sec. 34-1-2 am'd; Secs. 34-1-23 to 34-1-26, inclusive, added

Summary

HB103 redefines 'attest' to include standard-set engagements and adds privity, statute of limitations, venue, and expert-witness rules for accountants and firms in Alabama.

What This Bill Does

It expands the meaning of attest to cover engagements performed under major standards (SAS, SSARS, SSAE, and PCAOB) and ties them to board adoption of these standards. It adds new provisions on privity, the statute of limitations, venue, and expert witnesses for actions involving licensees or firms. It also sets liability safeguards, including a two-year filing window with a discovery rule and a four-year cap, plus specified venues and expert-witness requirements.

Who It Affects

• Licensed public accountants and accounting firms in Alabama: face a broader definition of attest work, new liability rules, venue rules, and requirements for expert testimony and insurance information.
• Clients/issuers and other potential claimants: face tighter standing rules, reliance requirements, discovery-based time limits, and defined venues for lawsuits.

Key Provisions

• Amends §34-1-2 to redefine ATTEST as including engagements performed under SAS, SSARS, SSAE, or PCAOB standards, with these standards adopted by the board.
• Adds §§34-1-23 to 34-1-26 establishing liability rules, privity considerations, and procedural requirements for actions against licensees or firms.
• §34-1-24 sets a two-year statute of limitations for actions, with a discovery rule that allows up to six months after discovery (or date facts would lead to discovery) and a hard four-year cap overall.
• §34-1-25 requires actions to be filed in specific counties: where the licensee/firma generated the statements, or where the claimant/residing individual or claimant's principal office is located.
• §34-1-26 establishes 'similarly situated licensee' requirements for expert witnesses, restricts certain insurance-related evidence, and keeps liability insurance coverage from being discoverable.
• Effective date: the act becomes law on the first day of the third month after passage and governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Boards and Profession