§ 40-2-80 — Investigations of complaints or other information suggesting violations; report.

(A) The department, upon receipt of a complaint or other information suggesting violation of this chapter or of regulations promulgated pursuant to this chapter, shall conduct an appropriate investigation to determine whether there is probable cause to institute proceedings. An investigation under this section is not a prerequisite to conducting proceedings if a determination of probable cause can be made without investigation. In aid of investigations, the administrator of the board shall issue subpoenas to compel witnesses to testify and to produce evidence, as necessary for an appropriate investigation. (B)(1) An investigation of a licensee pursuant to this chapter must be performed by an inspector-investigator who has been licensed as a certified public accountant for at least the previous five years. The inspector-investigator must report the results of his investigation to the board no later than one hundred fifty days after the date upon which he initiated his investigation. If the inspector-investigator has not completed his investigation by that date, then the board may extend the investigation for a period defined by the board. The board may grant subsequent extensions to complete the investigation as needed. The inspector-investigator may designate additional persons of appropriate competency to assist in an investigation. (2) The department shall annually post a report related to the number of complaints received, the number of investigations initiated, the average length of investigations, and the number of investigations that exceeded one hundred fifty days. (C) The results of an investigation must be presented to the board. (D) For the purpose of an investigation under this section, the department may administer oaths and issue subpoenas for the attendance and testimony of witnesses and the production and examination of books, papers, and records as necessary for an appropriate investigation and on behalf of the board or, upon request, on behalf of a party to the case. Upon failure to obey a subpoena or to answer questions propounded by the board or its hearing officer or panel, the board may apply to the Administrative Law Court for an order requiring compliance with the subpoena. (E) The testimony and documents submitted in support of the complaint or gathered in the investigation must be treated as confidential information and must not be disclosed to any person except law enforcement authorities and, to the extent necessary in order to conduct the investigation, the subject of the investigation, persons whose complaints are being investigated, and witnesses questioned in the course of the investigation. All proceedings related to the investigations and inquiries during the investigation process undertaken pursuant to this chapter are confidential, unless the licensee or registrant who is the subject of the investigation or inquiry waives the confidentiality of the existence of the complaint. (F) The board may review the publicly available professional work of licensees, and all professional work submitted to the State, on a general and random basis, without any requirement of a formal complaint or suspicion of impropriety. If as a result of a review the board discovers reasonable grounds for a more specific investigation, the board may proceed under subsections (A) through (E). (G) If the department receives information indicating a possible violation of state or federal law, the department may provide that information, to the extent the department considers necessary, to the appropriate state or federal law enforcement agency or regulatory body. (H)(1) In an investigation or disciplinary proceeding concerning a licensee, the department may require a state criminal records check, including fingerprints, performed by the South Carolina Law Enforcement Division, and a national criminal records check, including fingerprints, performed by the Federal Bureau of Investigation. The results of these criminal records checks must be reported to the department. The South Carolina Law Enforcement Division is authorized to retain the fingerprints for certification purposes and for notification of the department regarding criminal charges. The department shall keep information received pursuant to this section confidential, except that information relied upon in an administrative action may be disclosed as may be necessary to support the administrative action. (2) Notwithstanding any other provision of this section or any other provision of law, the dismissal of a prosecution of fraudulent intent in drawing a dishonored check by reason of want of prosecution or proof of payment of restitution and administrative costs must not be used as evidence of performance of a fraudulent act for disciplinary purposes. (3) Costs of conducting a criminal records check are the responsibility of the department and may be recovered as administrative costs associated with an investigation or hearing pursuant to this chapter unless ordered by the department as a cost in a disciplinary proceeding.

Legislative History

HISTORY: 1996 Act No. 453, SECTION 1; 2004 Act No. 289, SECTION 1; 2014 Act No. 268 (H.3459), SECTION 4, eff June 9, 2014; 2015 Act No. 51 (S.301), SECTION 6, eff June 3, 2015; 2019 Act No. 68 (H.3785), SECTION 5, eff May 16, 2019; 2022 Act No. 174 (S.812), SECTION 1, eff May 16, 2022; 2025 Act No. 34 (S.176), SECTION 12, eff June 30, 2025. Effect of Amendment 2014 Act No. 268, SECTION 4, rewrote subsection (B). 2015 Act No. 51, SECTION 6, added (H). 2019 Act No. 68, SECTION 5, in (E), added the second sentence, providing that all proceedings and inquiries related to the investigations are confidential except when the subject of an investigation waives confidentiality of the existence of the complaint. 2022 Act No. 174, SECTION 1, in (A), in the third sentence, substituted "shall issue subpoenas to compel witnesses to testify and to produce evidence, as necessary for an appropriate investigation" for "may issue subpoenas to compel witnesses to testify or to produce evidence, or both"; made a nonsubstantive change in (B)(1); and in (D), in the first sentence, inserted "as necessary for an appropriate investigation and" following "and records". 2025 Act No. 34, SECTION 12, in (B)(1), in the first sentence, substituted "for at least the previous" for "in this State for at least"; and in (B)(2), made a nonsubstantive change.