NEW JERSEY REGISTER
VOLUME 38, ISSUE 10
ISSUE DATE: MAY 15, 2006
LAW AND PUBLIC SAFETY
DIVISION OF CONSUMER AFFAIRS
New Jersey State Board Of Accountancy
Proposed Amendments: N.J.A.C. 13:29-1.5 and 1A.9
Fees; Public School Accountant's License; Renewal; Suspended License; Reinstatement; Inactive Status
Authorized By: New Jersey State Board of Accountancy, William Mandeville, Executive Director.
Authority: N.J.S.A. 45:2B-48, 45:2B-73 and 45:1-15.1.
Calendar Reference: See Summary below for explanation of exception to calendar requirement.
Proposal Number: PRN 2006-150.
Submit comments by July 14, 2006 to:
William Mandeville, Executive Director
New Jersey State Board of Accountancy
124 Halsey Street
P.O. Box 45000
Newark, New Jersey 07101
The agency proposal follows:
Pursuant to its general rulemaking authority set forth at N.J.S.A. 45:2B-48, the New Jersey State Board of Accountancy (the Board) is proposing to amend N.J.A.C. 13:29-1A.9, concerning public school accountant licenses. The proposed amendments clarify that applicants for public school accountant licenses must pay an initial license fee and that such licenses must be renewed on a triennial basis. The proposed amendments also set forth requirements for license renewal for public school accountants. Public school accountants renewing their licenses within 30 days following the license expiration date will be required to remit a late fee in addition to the standard registration renewal fee imposed by the Board. A licensee who fails to submit a renewal application within 30 days of the license expiration will have his or her public school accountant license suspended without a hearing. A public school accountant seeking reinstatement following a license suspension for failure to renew must submit a renewal application, past due renewal fees, a reinstatement fee, any outstanding penalties previously imposed by the Board, and evidence of having completed the requisite continuing professional education hours.
The proposed amendments also clarify that a public school accountant may elect inactive status upon license renewal, provided he or she holds an active certified public accountant (CPA) or registered municipal accountant (RMA) license at the time of license renewal. If a public school accountant's CPA or RMA license is inactive, however, the public school accountant must renew his or her public school accountant license as inactive. In order to return to active practice, an inactive public school accountant must submit a renewal application, the renewal fee for the current registration period, and evidence of having completed the required continuing professional education hours. A public school accountant who has elected inactive status is prohibited from using the title or designation of public school accountant or any other title or designation that would imply that he or she holds a valid, active public school accountant license issued by the Board.
The Board also proposes to amend its fee schedule set forth at N.J.A.C. 13:29-1.5, in order to clarify which fees will be applicable to public school accountants. The current triennial registration fee for such licensees of $ 50.00 has remained unchanged. An initial license fee of $ 50.00 has been added to the fee schedule, as has a reinstatement fee of $ 150.00, a late renewal fee of $ 50.00, an inactive status fee of $ 45.00, and a replacement license fee of $ 25.00. These fees are consistent with the fees currently imposed by the Board upon other licensee classes, and are necessary to offset the administrative expenses that are borne by the Board in licensing and regulating public school accountants. The Board is also proposing to amend subsection (e) of N.J.A.C. 13:29-1.5, which currently provides that continuing professional education sponsors must pay a $ 100.00 sponsor approval fee on a biennial basis. The proposed amendment would require the sponsors to pay the $ 100.00 fee on a triennial basis, in keeping with the fact that the Board renews the licenses it issues on a triennial, not a biennial, basis.
The Board has provided a 60-day comment period for this notice of proposal. Therefore, this notice is excepted from the rulemaking calendar requirement pursuant to N.J.A.C. 1:30-3.3(a)5.
The Board believes that the proposed amendments will have a positive impact upon its licensees by clarifying the obligations and responsibilities imposed upon licensed public school accountants in terms of license renewal, license reinstatement following a suspension for failure to renew, and the election of inactive licensure status.
The proposed amendments will have an economic impact upon licensed public school accountants to the extent that such licensees who submit their renewal applications within 30 days after the license expiration date must submit a late fee, in addition to the standard license renewal fee charged by the Board. Licensees who have had their licenses suspended for failure to renew within 30 days after the license expiration date will incur additional costs if they wish to have their license reinstated, including costs associated with the submission of a renewal application, past due renewal fees, a reinstatement fee, outstanding penalties imposed by the Board, and evidence of having completed continuing education requirements. The proposed amendments concerning inactive licensure status may also have an economic impact upon public school accountant licensees who choose to renew their licenses with the inactive designation, to the extent that such persons must bear the costs associated with submitting the required documentation and fees set forth in the rule and in completing requisite continuing education requirements if they wish to resume active practice.
Federal Standards Statement
A Federal standards analysis is not required because the proposed amendments are governed by N.J.S.A. 45:2B-42 et seq., and are not subject to any Federal standards or requirements.
The Board does not believe that the proposed amendments will result in the creation or loss of jobs in the State.
Agriculture Industry Impact
The proposed amendments will have no impact on the agriculture industry in the State.
Regulatory Flexibility Analysis
Currently, the Board licenses approximately 19,637 accountants, including approximately 1,000 public school accountants. If Board licensees are considered "small businesses," within the meaning of the Regulatory Flexibility Act, N.J.S.A. 52:14B-16 et seq., then the following analysis applies.
The proposed amendments do not impose any reporting or recordkeeping requirements upon Board licensees. The proposed amendments will, however, impose various compliance requirements upon Board licensees which are discussed in the Summary above.
No additional professional services will be needed to comply with the proposed amendments. The costs of compliance with the proposed amendments are discussed in the Economic Impact statement above. The Board believes that the proposed amendments should be uniformly applied to all licensees in order to ensure the health, safety and welfare of the general public in the provision of accounting services and, therefore, no differing compliance requirements for any licensees are provided based upon the size of the business.
Smart Growth Impact
The Board does not believe that the proposed amendments will have any impact upon the achievement of smart growth or upon the implementation of the State Development and Redevelopment Plan.
Full text of the proposal follows (additions indicated in boldface thus; deletions indicated in brackets [thus]):
(a)-(c) (No change.)
(d) Fees for Public School Accountants are as follows:
1. Initial license fee: $ 50.00;
[1.] 2. Triennial registration fee: $ 50.00[.];
3. Reinstatement of license: $ 150.00;
4. Late renewal fee: $ 50.00;
5. Inactive status renewal: $ 45.00;
6. Replacement license: $ 25.00.
(e) Entities filing an application to become [Sponsors of Continuing Professional Education] sponsors of continuing professional education shall pay a fee of $ 100.00 on a triennial basis for administrative costs and evaluation of programs submitted.
[1. Sponsor fees shall be charged on a biennial basis on the first business day of July of each odd numbered year.]
13:29-1A.9 Public School Accountant's license; renewal; suspended license; reinstatement; inactive status
(a) The holder of a license as a Certified Public Accountant, Public Accountant or [registered municipal accountant] Registered Municipal Accountant shall be granted a Public School Accountant's license upon application to the Board, and the payment of [a] the initial license fee [for a period of three years, as] set forth in N.J.A.C. 13:29-1.5.
(b) The holder of a Public School Accountant's license shall renew the license for a period of three years from the last expiration date. The licensee shall remit a renewal application to the Board, along with the renewal fee set forth in N.J.A.C. 13:29-1.5, prior to the date of license expiration. A licensee who submits a renewal application within 30 days following the date of license expiration shall submit the renewal fee, as well as the late fee set forth in N.J.A.C. 13:29-1.5. A licensee who fails to submit a renewal application within 30 days of the date of license expiration shall have his or her Public School Accountant license suspended without a hearing.
(c) A licensee who continues to practice with a suspended license shall be deemed to be engaging in unauthorized practice and shall be subject to the penalties set forth in N.J.S.A. 45:1-25 et seq.
(d) A licensee who has had his or her license suspended pursuant to (b) above may apply to the Board for reinstatement following the date of license expiration. A licensee applying for reinstatement shall submit:
1. A renewal application, including an affidavit of employment listing each job held during the period of license suspension, including the names, addresses, and telephone numbers of each employer;
2. All past due renewal fees set forth in N.J.A.C. 13:29-1.5;
3. The reinstatement fee set forth in N.J.A.C. 13:29-1.5;
4. Any outstanding penalties imposed by the Board; and
5. Evidence of having completed 120 continuing professional education credit hours in the three-year period prior to reinstatement.
(e) The Board shall send a notice of renewal to each licensee at least 60 days prior to the expiration of the license. If the notice to renew is not sent at least 60 days prior to the expiration date, no monetary penalties or fines shall be imposed upon the licensee for failure to renew.
(f) A Public School Accountant holding an active Certified Public Accountant, Public Accountant or Registered Municipal Accountant license may, upon application to the Board, choose inactive Public School Accountant licensure status. A Public School Accountant holding an inactive Certified Public Accountant, Public Accountant or Registered Municipal Accountant license, consistent with N.J.A.C. 13:29-1A.10 or 2.3, shall elect inactive status. A Public School Accountant electing inactive status shall not engage in active public school accounting practice in New Jersey for the entire triennial registration period unless the licensee applies to the Board to resume active practice. A Public School Accountant on inactive status seeking to resume the practice of public school accounting in New Jersey shall apply to the Board and shall submit:
1. A renewal application, including an affidavit of employment listing each job held during the period of license inactivity, including the names, addresses, and telephone numbers of each employer;
2. The renewal fee for the current triennial registration period set forth in N.J.A.C. 13:29-1.5;
3. Evidence of having completed 120 continuing professional education credit hours in the three-year period prior to reinstatement; and
4. Evidence of an active Certified Public Accountant, Public Accountant or Registered Municipal Accountant license.
(g) A Public School Accountant who has elected inactive status shall not use, in any form, the title or designation of public school accountant or any other title or designation that implies that the person holds a valid, active Public School Accountant license from the Board. Inactive Public School Accountant licensees may use such titles or designations provided the titles or designations contain the word inactive.