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NEW JERSEY REGISTER
VOLUME 37, NUMBER 9
MONDAY, MAY 2, 2005
RULE PROPOSAL
LAW AND PUBLIC SAFETY
DIVISION OF CONSUMER AFFAIRS
NEW JERSEY STATE BOARD OF ACCOUNTANCY
NEW JERSEY STATE BOARD OF ACCOUNTANCY RULES

Proposed Readoption with Amendments: N.J.A.C. 13:29

Proposed Repeals: N.J.A.C. 13:29-3.9, 3.13 and 5.9

Authorized By: New Jersey State Board of Accountancy, William Mandeville, Executive Director.

Authority: N.J.S.A. 45:2B-48, 45:1-15.1.
Calendar Reference: See Summary below for explanation of exception to calendar requirement.
Proposal Number: PRN 2005-157.

Submit comments by July 1, 2005 to:

William Mandeville, Executive Director

New Jersey State Board of Accountancy

124 Halsey Street

PO Box 45000

Newark, New Jersey 07101

The agency proposal follows:

Summary

The New Jersey State Board of Accountancy (the Board) is proposing to readopt N.J.A.C. 13:29 with amendments. These rules are scheduled to expire on May 1, 2005, pursuant to Executive Order No. 66(1978). Because this notice of readoption has been filed prior to May 1, 2005, the expiration date of the rules in Chapter 29 is extended by 180 days to October 28, 2005, pursuant to N.J.S.A. 52:14B-5.1.

In compliance with the Executive Order, the Board undertook a thorough review of the existing provisions of N.J.A.C. 13:29 in order to delete unnecessary or unreasonable rules and to clarify existing provisions. The Board believes that the rules proposed for readoption, as amended, are necessary, reasonable, understandable and responsive to the purpose for which they were promulgated.

The following is a summary of the subchapters of N.J.A.C. 13:29 which the Board proposes to readopt, as well as a summary of the amendments the Board is proposing at this time.

Subchapter 1 contains general rules. N.J.A.C. 13:29-1.1, which establishes the official name of the Board, and N.J.A.C. 13:29-1.2, which establishes meeting dates for the Board, are proposed to be readopted without amendment. N.J.A.C. 13:29-1.3, which concerns notifications to the Board regarding changes of address, is proposed to be readopted with amendments. The Board is proposing to amend subsection (a), which currently provides that a licensee must notify the Board of any change of address that is currently registered with the Board and shown on the most recently issued license, to provide that licensees must notify the Board of any change in his or her address of record. "Address of record" is defined to mean the address designated by the licensee which is part of the public record and which may be disclosed to the public upon request. The address of record may be a licensee's home, business or mailing address, but may not be a post office box unless the licensee also provides another address which includes a street, city, state and zip code. Currently, subsection (a) requires that notice of a change in address must be sent to the Board by certified mail no later than 30 days following the change. The Board is proposing to amend subsection (a) to provide that notice of a change in a licensee's address of record must be sent to the Board by mail or by electronic means, in order to allow licensees greater flexibility in their method of communication with the Board. Such notice, however, must still be sent to the Board no later than 30 days following the change of address. References to a licensee's address in subsections (b) and (c) of N.J.A.C. 13:29-1.3 are amended to refer to the licensee's address of record, consistent with the proposed amendments to subsection (a).

N.J.A.C. 13:29-1.4, which provides that the filing of an application for examination or a certificate by endorsement constitutes an agreement on the part of the applicant to observe and conform to the requirements of Chapter 29, is proposed to be amended in order to clarify the terminology used to refer to applicants for certificate by endorsement. The use of the phrase "certificate by endorsement" is no longer consistent with the provisions of the Accountancy Act of 1997, N.J.S.A. 45:2B-42. Persons applying for a certificate by endorsement are now referred to under the Act as persons seeking a license by waiver of examination based upon licensure in another jurisdiction. The Board notes that all references throughout the rules within Chapter 29 to applicants for a certificate by endorsement are proposed to be amended to refer to applicants seeking licensure by waiver of examination based upon licensure in another jurisdiction, in order to avoid any confusion which may be generated when the rules are read in conjunction with the provisions of the Act relevant to such applicants.

N.J.A.C. 13:29-1.5 sets forth the Board's fee schedule. The Board is proposing various amendments to the fee schedule in order to clarify the existing provisions of the rule. Specifically, the Board is proposing to reorder many of the fees currently listed in subsection (a), in order to clarify to whom the fees are applicable. As proposed to be amended, the fees in subsection (a) are applicable to Certified Public Accountants, Public Accountants, and accounting firms, including sole proprietorships, partnerships, professional corporations, limited liability companies and limited liability partnerships. Paragraphs (a)1 through 6 set forth the application fee, initial licensee fee, triennial registration fee, reinstatement fee, late renewal fee and inactive status renewal fee for such persons and entities. The fees delineated in paragraphs (a)1 through 6 remain unchanged from their currently established level. The Board is proposing two new fees, set forth in paragraphs (a)7 and 8, for the replacement of wall certificates and licenses issued by the Board. The proposed fee for a replacement wall certificate is $40.00, and the proposed fee for a replacement license is $25.00. These fee amounts are being proposed in order to offset the administrative expenses that will be borne by the Board in providing such replacement documents to licensees.

The Board is also proposing new subsections (b), (c) and (d) in N.J.A.C. 13:29-1.5, to clearly delineate the fees currently listed in subsection (a) which are applicable to applicants seeking licensure by waiver of examination based upon licensure in another jurisdiction (previously applicants for certificates by endorsement, as noted above), to registered municipal accountants, and public school accountants, respectively. The fees delineated in proposed new subsections (b), (c) and (d) are all currently included in the fee schedule and are not proposed to be amended, with the exception of new fees which are being proposed for the replacement of wall certificates and licenses for Registered Municipal Accountants in paragraphs (c)8 and 9. The proposed fees for the replacement of such documents is $40.00 and $25.00, respectively. Existing subsection (b) is proposed to be recodified as subsection (e), without change. N.J.A.C. 13:29-1.6, which requires a licensee to notify the Board of any criminal conviction, is proposed to be readopted without amendment.

The rules in Subchapter 1A establish requirements for taking the Uniform Certified Public Accountant Examination and for obtaining licensure as a Certified Public Accountant. The following rules in Subchapter 1A are proposed to be readopted without amendment: N.J.A.C. 13:29-1A.1, which delineates applicant qualifications; N.J.A.C. 13:29-1A.2, which sets forth the examination requirements; N.J.A.C. 13:29-1A.3, which set forth the education and experience requirements for examination applicants; N.J.A.C. 13:29-1A.4, which concerns the granting of examination credit and reexamination requirements; N.J.A.C. 13:29-1A.5, which establishes a transition period for applicants for licensure who have obtained credit for passing parts of the examination in or before November 2003; N.J.A.C. 13:29-1A.6, which establishes standards for the calculation of credit earned on the examination prior to November 2003; and N.J.A.C. 13:29-1A.7, which sets forth security requirements imposed upon applicants in connection with taking the examination.

N.J.A.C. 13:29-1A.8, which concerns applications for licensure by endorsement, is proposed to be amended to refer to applications for licensure by waiver of examination based on licensure in other jurisdictions, consistent with the provisions of the Accountancy Act, as noted above. N.J.A.C. 13:29- 1A.9, which concerns the granting of a Public School Accountant's license, is proposed for readoption without amendment. N.J.A.C. 13:29-1A.10, which concerns requirements for license renewal, is proposed to be amended to clarify what licensees seeking reinstatement must submit to the Board. In addition, the proposed amendments also establish requirements for the election of inactive license status. The Board is proposing these amendments in light of recent amendments to the Uniform Enforcement Act, N.J.S.A. 45:1-7.1, P.L. 1999, c.403, which mandate certain license renewal, reinstatement and inactive licensure requirements. Currently, subsection (e) of N.J.A.C. 13:29-1A.10 provides that licensees must submit a renewal application, all past delinquent renewal fees and a reinstatement fee, as well as evidence of having completed continuing professional education requirements. The Board is proposing to amend subsection (e) to provide that the renewal application must include an affidavit of employment listing each job the applicant held during the period of license suspension, including the names, addresses and telephone number of the employers, and that applicants for reinstatement must also submit any outstanding penalties previously imposed by the Board. The Board is proposing new subsection (f) to require that a Certified Public Accountant whose license has been suspended for more than five years successfully complete the licensing examination required by N.J.A.C. 13:29-1A.1 and submit the documents required by subsection (e). The Board is proposing new subsection (g) to require that a Public Accountant whose license has been suspended for more than five years reapply for licensure and demonstrate that he or she has maintained proficiency. If an applicant does not demonstrate such proficiency, he or she may be subject to an examination or other requirements. The Board has created these differing standards for reinstatement in recognition of the fact that Public Accountants, who did not take the examination as a prerequisite of licensure, are not permitted to take the licensing examination required by N.J.A.C. 13:29-1A.10.

The Board is proposing a new subsection (h) in N.J.A.C. 13:29-1A.10 which requires the Board to send a notice of renewal to each licensee at least 60 days prior to the date of license expiration. If the notice to renew is not sent at least 60 days prior to the expiration date, no monetary penalties or fines may be imposed upon the licensee for the failure to renew. Proposed new subsection (i) allows licensed accountants to choose inactive status upon license renewal. An accountant electing inactive status may not engage in the practice of accountancy in New Jersey for the entire triennial registration period. Only upon Board action in response to an application may a licensee resume the active practice of accountancy in this State. The proposed amendment provides that in order to resume active practice, a licensee must submit a renewal application, including an affidavit of employment listing each job held during the period of license inactivity, as well as the renewal fee for the current triennial registration period, and evidence of having completed the requisite amount of continuing education. Proposed new subsection (j) prohibits a licensee who has elected inactive status from using the title or designation of certified public accountant, public accountant, accountant or auditor, or any other title or designation that would imply that he or she holds a valid, active license from the Board. Such titles or designations may only be used if they contain the work "inactive."

Subchapter 2 sets forth requirements for licensure as a registered municipal accountant. N.J.A.C. 13:29-2.1 establishes application and applicant requirements. N.J.A.C. 13:29-2.2, which imposes requirements for taking the Registered Municipal Accountant examination, is proposed to be readopted without amendment. N.J.A.C. 13:29-2.3, which concerns renewal of the registered municipal accountant license, is proposed to be amended, consistent with the proposed amendments to N.J.A.C. 13:29-1A.10 discussed above. Subsection (e) is amended to provide that applicants seeking reinstatement following a suspension for failure to renew must submit a renewal application with an affidavit of employment listing each job the applicant held during the period of license suspension, including the names, addresses and telephone number of the employers. The proposed amendment also provides that applicants for reinstatement must also submit any outstanding penalties previously imposed by the Board. Proposed new subsection (f) requires that a Registered Municipal Accountant whose license has been suspended for more than five years successfully complete the licensing examination required by N.J.A.C. 13:29- 1A.1 and submit the documents required by subsection (e). Proposed new subsection (g) requires the Board to send a notice of renewal to each registered municipal accountant at least 60 days prior to the date of license expiration. If the notice to renew is not sent at least 60 days prior to the expiration date, no monetary penalties or fines may be imposed upon the licensee for the failure to renew.

Proposed new subsection (h) of N.J.A.C. 13:29-2.3 allows a registered municipal accountant to elect inactive status upon license renewal, provided he or she holds an active Certified Public Accountant (CPA) or Public Accountant (PA) license at the time of license renewal. If a registered municipal accountant's CPA or PA license is inactive, however, the registered municipal accountant must renew his or her registered municipal accountant license as inactive, consistent with the requirements of N.J.S.A. 45:2B-70 of the Accountancy Act. A registered municipal accountant who is inactive and seeks to return to the active practice of municipal accounting must submit a renewal application, complete with an affidavit of employment, as well as the renewal fee for the current triennial registration period, and evidence of having completed the requisite number of continuing professional education hours. A registered municipal accountant who has elected inactive status is prohibited, pursuant to proposed new subsection (i), from using the title or designation of registered municipal accountant or any other title or designation that would imply that he or she holds a valid, active registered municipal account license from the Board. Such titles or designations may only be used if they contain the work "inactive."

Subchapter 3 sets forth rules of professional conduct. The Board proposes the following rules in the subchapter be readopted without amendment: N.J.A.C. 13:29-3.1, concerning independence; N.J.A.C. 13:29-3.2, concerning integrity and objectivity; N.J.A.C. 13:29-3.3, concerning competence; N.J.A.C. 13:29-3.4, concerning forecasts; N.J.A.C. 13:29-3.5, concerning auditing standards; N.J.A.C. 13:29-3.6, concerning accounting principles; N.J.A.C. 13:29-3.7, which imposes requirements for maintaining the confidentiality of client information; N.J.A.C. 13:29-3.8, which concerns the permissibility of contingent fees; N.J.A.C. 13:29-3.10, which imposes limitations on licensee advertising; N.J.A.C. 13:29-3.11, concerning client solicitations; N.J.A.C. 13:29-3.12, concerning the permissibility of commissions, performance fees and referral fees; N.J.A.C. 13:29-3.14, which is currently reserved; N.J.A.C. 13:29-3.15, concerning permissible firm names; and N.J.A.C. 13:29-3.16, concerning the release of client records.

The Board is proposing that N.J.A.C. 13:29-3.9, which provides that a licensee shall not commit any act that reflects adversely on the licensee's fitness to engage in the practice of public accountancy, be repealed because the section does not provide the licensee with sufficient notice as to the types of acts which could trigger Board action. The Board believes that the provisions of Uniform Enforcement Act, set forth at N.J.S.A. 45:1-21, clearly delineate the type of activities which could result in the suspension or revocation of a license and, therefore, N.J.A.C. 13:29-3.9 is unnecessary. In addition, the Board is proposing that N.J.A.C. 13:29-3.13, which provides that a licensee or a licensee's firm shall not concurrently engage in the practice of public accountancy and in any other business or corporation which impairs the licensee's independence or objectivity in rendering professional services, be repealed because the provision no longer accurately reflects the realities of current accountancy practice. Pursuant to the Accountancy Act, licensees and accounting firms may now provide myriad services to accounting clients, and questions regarding independence or objectivity must be analyzed in terms of the clients to whom the services are being provided, and not necessarily the services that are being provided. The Board is proposing that N.J.A.C. 13:29-3.9 and 3.13 be reserved.

The Board is proposing that Subchapter 4 continue to remain reserved. In addition, the Board is proposing that the following rules in Subchapter 5, which establish requirements for the Board's quality enhancement program, be readopted without amendment: N.J.A.C. 13:29-5.1, which delineates the purpose and scope of the subchapter rules; N.J.A.C. 13:29-5.2, which sets forth definitions of relevant terms used throughout the subchapter; N.J.A.C. 13:29-5.3, which sets forth the membership and duties of the Quality Enhancement Committee; N.J.A.C. 13:29-5.4, which delineates the reports which must be furnished, upon request, to the Committee; N.J.A.C. 13:29-5.5, which establishes exceptions to the reporting requirement of N.J.A.C. 13:29- 5.4; N.J.A.C. 13:29-5.6, which establishes the confidentiality of documentation submitted to the Committee pursuant to N.J.A.C. 13:29-5.4; N.J.A.C. 13:29-5.7, concerning the review and evaluation of submitted reports; and N.J.A.C. 13:29-5.8, concerning Committee action on reviewed reports. The Board is proposing that N.J.A.C. 13:29-5.9, which provides that reports submitted by practice units and reviews conducted by the Committee are not public records, be repealed and reserved. The requirements outlined in the rule are superseded by requirements imposed under the Open Public Records Act, P.L. 2001, c.404, N.J.S.A. 47:1A-1 et seq.

Subchapter 6 sets forth the rules for continuing professional education. The Board proposes that the following rules be readopted without amendment: N.J.A.C. 13:29-6.1, which sets forth the scope of the rules contained in the subchapter; N.J.A.C. 13:29-6.3, which delineates the technical subjects that licensees may take to obtain continuing professional education credit; N.J.A.C. 13:29-6.3A, which requires licensees to complete a four credit course, per triennial period, on New Jersey law and ethics; N.J.A.C. 13:29- 6.4, which sets forth the balance of subjects that licensees may take to obtain the remainder of their continuing professional education credits; N.J.A.C. 13:29-6.5, which sets forth the sources of permissible continuing professional education credit; N.J.A.C. 13:29-6.6, concerning the criteria for continuing professional education sponsors; N.J.A.C. 13:29-6.7, concerning credit-hour calculations; N.J.A.C. 13:29-6.8, concerning reporting of continuing professional education credit hours; N.J.A.C. 13:29-6.9, concerning the retention of continuing professional education records; N.J.A.C. 13:29-6.11, which sets forth the responsibilities of continuing professional education program developers; N.J.A.C. 13:29-6.12, which sets forth the responsibilities of program sponsors; and N.J.A.C. 13:29-6.13, which concerns a sponsor's failure to comply with continuing professional education program responsibilities.

The Board is proposing to amend N.J.A.C. 13:29-6.2, which establishes credit hour requirements for all licensees, in order to clarify continuing professional education requirements for licensees seeking to return from either inactive or suspended licensure status. Initially, the Board notes that it is amending subsection (b) to delete the portion of the rule that provides that persons failing to meet the continuing professional education requirements for a triennial renewal period shall not be issued a current license, because the provision is inaccurate. Persons failing to obtain the requisite number of continuing professional education credits will not be denied a license, but rather, as the remaining portion of subsection (b) accurately provides, will be subject to disciplinary action by the Board.

Subsection (c) of N.J.A.C. 13:29-6.2 currently provides that inactive accountants are exempt from the requirement of completing continuing professional education, but if they seek to return to active status, they must complete 120 credit hours of continuing professional education within the three-year period prior to reinstatement. Accountants inactive for more than one year, but not exceeding two years, must complete at least 80 credit hours of continuing professional education within the two-year period prior to reinstatement. Accountants inactive for one year or less must complete at least 40 credit hours of continuing professional education in the year prior to reinstatement. The Board is proposing to move these requirements into new subsections within N.J.A.C. 13:29-6.2, in order to better organize the rule and make the requirements easier to find and follow. Specifically, new subsection (e) provides that inactive licensees shall be exempt from continuing professional education requirements. Proposed new subsection (f) provides that inactive licensees seeking to return to active practice must meet the requirements previously contained in subsection (c). Subsection (f) also makes these requirements applicable to licensees seeking to resume the practice of accountancy following a license suspension for failure to renew. Therefore, under proposed new subsection (f), licensees seeking to return to active status and licensees seeking reinstatement of a suspended license must complete 120 credit hours of continuing professional education within the three-year period prior to reactivation or reinstatement. Accountants inactive or suspended for more than one year, but not exceeding two years, must complete at least 80 credit hours of continuing professional education within the two-year period prior to reactivation or reinstatement. Accountants inactive or suspended for one year or less must complete at least 40 credit hours of continuing professional education in the year prior to reactivation or reinstatement. In light of these amendments, the Board is proposing to amend N.J.A.C. 13:29- 6.10, which currently contains continuing professional education requirements for applicants applying for reciprocity or reinstatement. Existing subsection (b), which provides that persons applying for reinstatement must meet the same continuing professional education requirements applicable to all other licensees, is proposed to be deleted.

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.

Social Impact

The Board believes that the existing rules, which have been in effect for the past five years, have protected the health, safety and welfare of the citizens of New Jersey by identifying those individuals who are qualified and legally authorized to engage in the practice of accountancy. These rules establish the requisite standards of licensure in the State and positively affect the regulated community by clarifying the varied aspects of the practice of accountancy for the benefit of all Board licensees and applicants for licensure. The readoption of N.J.A.C. 13:29 is essential in order for the Board to continue to regulate the practice of accountancy, to identify those individuals who are qualified to engage in the practice, and to ensure that every licensee and applicant for licensure is aware of the procedures involved with licensure.

The readoption of N.J.A.C. 13:29 continues the accepted standards of the practice of accountancy established by the Board, and by so doing, provides licensees and applicants for licensure with a clear and comprehensive set of rules to guide them in their professional practice. Applicants for licensure will benefit by having a set of rules which govern the manner in which they may qualify for licensure. The Board also believes that licensees will benefit from the readoption, as a result of the uniform standards that will be applied throughout the profession.

The Board also believes that the proposed readoption will have a positive impact upon the general public by continuing to safeguard the public welfare by ensuring the maintenance of professional practice standards, which will enable licensees to provide the highest quality professional services in the practice of accountancy.

The Board also believes that the proposed amendments to Chapter 29 will have a positive impact upon the licensed community and upon the consumers they serve. Specifically, the Board believes that the proposed reorganization of the fee schedule, set forth at N.J.A.C. 13:29-1.5, will make the schedule easier to understand and follow. In addition, the Board believes that the proposed amendments to N.J.A.C. 13:29-1.4 and 1A.8, amending the terminology used to refer to applicants for licensure who are currently licensed in other jurisdictions, will make the rule consistent with the Accountancy Act, therefore, eliminating any confusion that may be generated when the two are read together.

The Board believes that the proposed amendments to N.J.A.C. 13:29-1A.10 and 2.3 will help to clarify the obligations and responsibilities imposed upon licensed certified public accountants and registered municipal accountants in terms of license reinstatement following a suspension for failure to renew, and the election of inactive licensure status. In addition, the proposed amendments to N.J.A.C. 13:29-6.2 will help to clarify continuing education obligations applicable to licensees seeking reinstatement from a license suspension or seeking to return to active practice following the election of inactive status.

Economic Impact

The Board has reviewed its financial position and has determined that its fee schedule, N.J.A.C. 13:29-1.5, is sufficient to comport with the requirements of N.J.S.A. 45:1-3.2, which provides that professional boards in the State must collect revenues necessary to fund reasonable and necessary expenses, but prohibits the collecting of funds which exceed such expenses. Thus, readoption of the existing rules will enable the Board to continue to appropriately execute its functions without generating a surplus. The Board notes that the proposed inclusion of new fees for replacement wall certificates and licenses will not result in any significant impact upon the Board's financial position or upon licensees. The proposed fees of $40.00 for the replacement of wall certificates and $25.00 for the replacement of licenses are nominal amounts that will be used to offset the administrative expenses that will be borne by the Board in providing such replacement documents to licensees.

The Board anticipates that the proposed readoption of the current rules in Chapter 29 will not impose any new or additional costs upon applicants for licensure or licensees. The proposed readoption of the existing rules will continue the economic impact that the rules have had on such persons for the past five years. In addition, except where noted below, the Board does not believe that the proposed amendments to the rules in Chapter 29 will impose any new or additional economic impact upon members of the regulated community.

The rules in Subchapter 1 will continue to have an economic impact upon Board licensees. The proposed readoption of N.J.A.C. 13:29-1.3, which requires licensees to notify the Board of address changes, may have an economic impact upon licensees to the extent that licensees incur administrative costs associated with notifying the Board of such changes. In addition, a licensee's failure to notify the Board of such changes could also have an economic impact, to the extent that a licensee may be subject to the penalties set forth in N.J.S.A. 45:1-21(h). The proposed readoption of the Board's fee schedule at N.J.A.C. 13:29-1.5 will continue to have an economic impact upon applicants for licensure and licensees, to the extent that such persons will be required to remit to the Board the fees specified in the rule. N.J.A.C. 13:29-1.6, which requires a licensee to notify the Board of a criminal conviction, may have an economic impact upon licensees, to the extent that licensees may incur administrative costs associated with providing the Board with the requisite notice.

The proposed readoption of the rules in Subchapter 1A will continue to have an economic impact upon applicants for the CPA examination and for licensure as certified public accountants and public school accountants to the extent that applicants will incur costs associated with passing the required licensure examination, as provided in N.J.A.C. 13:29-1A.1, consistent with the conditional credit requirements imposed upon applicants pursuant to N.J.A.C. 13:29-1A.4, 1A.5, 1A.6 and 1A.7. In addition, applicants for licensure may be economically impacted by the readoption of N.J.A.C. 13:29-1A.3 to the extent that they incur costs associated with satisfying the education and experience requirements provided in the rule prior to obtaining licensure. Applicants for licensure who are already licensed in other jurisdiction and who seek a waiver of the examination will continue to be economically impacted by the readoption of N.J.A.C. 13:29-1A.8 to the extent that they incur costs associated with submitting the required documentation outlined in the rule to the Board for its review.

The proposed readoption of N.J.A.C. 13:29-1A.10, concerning licensure renewal, will continue to impose economic costs upon licensees to the extent that licensees who submit their renewal applications within 30 days after their license expiration date must submit a late fee, in addition to the standard license renewal fee charged by the Board. In addition, 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. The proposed amendment to N.J.A.C. 13:29-1A.10(e) may also economically impact licensees seeking reinstatement to the extent that the proposed amendment requires licensees to submit a renewal application, all past due renewal fees, a reinstatement fee, any outstanding penalties imposed by the Board and evidence of having completed continuing education requirements. The proposed amendments to subsection (g) of N.J.A.C. 13:29-1A.10, concerning inactive licensure status, may also have an economic impact upon 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.

The rules in Subchapter 2 will continue to have an economic impact upon applicants for a registered municipal accountant license. Applicants for the registered municipal accountant's license may incur administrative expenses in submitting the application and required documentation provided for in N.J.A.C. 13:29-2.1, and may also experience an economic impact as a result of the licensing examination which must be passed pursuant to N.J.A.C. 13:29-2.3. N.J.A.C. 13:29-2.3 will also continue to have an economic impact upon registered municipal accountants, to the extent that such licensees must renew their licenses on a triennial basis. In addition, the proposed amendments to N.J.A.C. 13:29-2.3(e), which requires a registered municipal accountant who has had his or her license suspended for failure to renew to submit a renewal application, all past due renewal fees, a reinstatement fee, any outstanding penalties imposed by the Board and evidence of having completed continuing education requirements, may have an economic impact upon such licensees to the extent that they incur costs associated with submitting the required documentation and fees to the Board. The proposed amendments to N.J.A.C. 13:29-2.3(g), which permit registered municipal accountants to elect inactive license status upon renewal, may also have an economic impact upon such licensees who choose to renew their licenses with the inactive designation. 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 of municipal accounting.

The proposed readoption of the rules in Subchapter 3, concerning professional practice standards, will continue to have an economic impact upon licensees, to the extent that licensees must conform their conduct to the rules contained in the subchapter. N.J.A.C. 13:29-3.1 prohibits a licensee from expressing an opinion on the financial statements of an entity or organization, if the licensee implies in any manner that he or she is acting as an independent public accountant, if the licensee lacks independence. N.J.A.C. 13:29-3.2 prohibits a licensee from knowingly misrepresenting facts. N.J.A.C. 13:29- 3.4 prohibits a licensee from allowing his or her name to be used in conjunction with any forecast of future transactions in any manner which could reasonably lead to the belief that the licensee vouches for the achievability of the forecast. N.J.A.C. 13:29-3.5 prohibits a licensee from allowing his or her name to be associated with financial statements while implying that he or she is acting as an independent public accountant, unless the licensee has compiled with generally accepted auditing standards. In addition, N.J.A.C. 13:29-3.6 prohibits a licensee from expressing an opinion that financial statements are presented in conformity with generally accepted accounting principles, if the statements contain a departure from such principles, unless the licensee can demonstrate unusual circumstances necessitating the departure.

N.J.A.C. 13:29-3.8 prohibits a licensee in public practice from receiving a contingency fee from a client if the licensee or the licensee's firm performs an audit or review of financial statements, a compilation of a financial statement accompanied by a report, or an examination of prospective financial information for the client. N.J.A.C. 13:29-3.8 also prohibits a licensee from receiving a contingency fee for preparing an original or amended tax return or claim for a tax refund. N.J.A.C. 13:29-3.11 permits a licensee to directly or indirectly solicit clients by circulars, advertisements or personal communications, provided that the means of solicitation do not contain any false, fraudulent, misleading, deceptive or unfair statements or claims. N.J.A.C. 13:29-3.12 prohibits a licensee from receiving a commission or performance fee from a client if the licensee or the licensee's firm performs an audit or review of financial statements, a compilation of financial statements accompanied by a report, or an examination of prospective financial information for a client. If a licensee is permitted to accept a referral fee, a commission or a performance fee, he or she must provide clients with a written disclosure. N.J.A.C. 13:29-3.16 requires licensees to furnish their clients with copies of the clients' records upon request.

The proposed readoption of Subchapter 5, concerning the Board's quality enhancement program, will continue to have an economic impact upon the Board and upon licensees. N.J.A.C. 13:29-5.3 provides that members of the Quality Enhancement Committee will be compensated on a per diem basis, at a rate determined by the Attorney General. The compensation will continue to be drawn from current license fees. Licensees may experience an economic impact as a result of the proposed readoption of N.J.A.C. 13:29-5.4, which concerns reports that must be furnished to the Committee, to the extent that licensees incur administrative expenses in compiling the information requested and forwarding such information to the Board.

Subchapter 6 sets forth the Board's continuing professional education requirements. The proposed readoption of N.J.A.C. 13:29-6.2 will continue to have an economic impact upon licensees, to the extent that licensees will be required to obtain 120 hours of continuing professional education over each triennial period. In addition, the proposed readoption of N.J.A.C. 13:29-6.2 will continue to have an economic impact upon licensees who have been inactive but who wish to resume the active practice of accountancy. Licensees who have been inactive for more than one year, but less than two years, must complete at least 80 hours of continuing professional education. Licensees inactive for one year or less must complete at least 40 credit hours in the year prior to reentry. The proposed amendments to N.J.A.C. 13:29-6.2(f) will also have an economic impact upon licensees who seek to return to accounting practice after a suspension for failure to renew pursuant to N.J.A.C. 13:29-1.10A or 2.3. Such licensees will incur costs associated with satisfying the same continuing education requirements imposed upon inactive licensees seeking to resume active accountancy practice. The proposed readoption of N.J.A.C. 13:29-6.6 will continue to have an economic impact upon continuing education sponsors, to the extent that sponsors incur administrative costs in submitting to the Board their applications, as well as the application fee specified in N.J.A.C. 13:29-1.5. Sponsors may also experience an economic impact, to the extent that they incur administrative costs associated with maintaining attendance records and course documentation for a five-year period. Similarly, licensees may incur administrative expenses in submitting the certification verifying completion of continuing professional education requirements as provided for in N.J.A.C. 13:29-6.8.

Federal Standards Statement

A Federal standards analysis is not required because the rules proposed for readoption with amendments are governed by N.J.S.A. 45:2B-42 et seq., and are not subject to any Federal standards or requirements. Although the rules in N.J.A.C. 13:29 are not subject to any Federal requirements or standards, where deemed appropriate, the Board has incorporated Federal standards. Specifically, N.J.A.C. 13:29-3.8, concerning contingent fees, and N.J.A.C. 13:29-3.12, concerning commissions and performance fees, provide that any licensee who receives a contingent fee, a performance fee, or a commission must comply with all applicable Federal securities laws and the rules promulgated thereunder, as well as all applicable Federal registration requirements, including the Investment Advisors Act of 1940 (15 U.S.C. 80b-1 et seq.), the Uniform Securities Law (1997) and the Securities Act of 1933 (15 U.S.C. 77a et seq.), and the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.).

Jobs Impact

The Board does not anticipate that the rules proposed for readoption with amendments will affect either the number of candidates applying for licensure or the number of licensees authorized to engage in the practice of accountancy in the State. Therefore, the Board does not anticipate that the rules proposed for readoption with amendments will result in an increase or decrease in the number of jobs in the State.

Agriculture Industry Impact

The Board does not anticipate that the rules proposed for readoption with amendments will have any impact on the agriculture industry of the State.

Regulatory Flexibility Analysis

The Regulatory Flexibility Act (the Act), N.J.S.A. 52:14B-16 et seq., requires the Board to provide a description of the types and an estimate of the number of small businesses to which the proposed readoption with amendments will apply. Currently, the Board licenses approximately 19,637 accountants. If Board licensees are considered "small businesses," within the meaning of the Act, then the following analysis applies.

The Act requires the Board to set forth reporting, recordkeeping and other compliance requirements of the proposed readoption with amendments, including the kinds of professional services likely to be needed to comply with the requirements. The Act further requires the Board to estimate the initial and annual compliance costs of the proposed readoption with amendments, to outline the manner in which it has designed the proposed readoption with amendments to minimize any adverse economic impact upon small businesses, and to set forth whether the proposed readoption with amendments establishes differing compliance requirements for small businesses.

The rules proposed for readoption with amendments will impose various reporting, recordkeeping and compliance requirements upon Board licensees. These requirements are discussed in the Summary statement above.

No additional professional services will be needed to comply with the rules proposed for readoption with amendments. In addition, the Board does not believe that there will be any significant additional economic impact upon licensees as a result of the rules proposed for readoption with amendments. The costs of compliance with the rules proposed for readoption with amendments are discussed in the Economic Impact statement above. The Board believes that the rules proposed for readoption with 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 accounting business.

Smart Growth Impact

The Board does not believe that the rules proposed for readoption with 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 rules proposed for readoption may be found in the New Jersey Administrative Code at N.J.A.C. 13:29.

Full text of the proposed amendments and repeals follows :

<< NJ ADC 13:29-1.3 >>

13:29-1.3 Notification of change of address; service of process

(a) A licensee of the Board of Accountancy shall notify the Board in writing of any change of <<+his or her+>> address <<-from that currently registered with the Board and shown on the most recently issued license->> <<+of record+>>. <<+For purposes of this section, "address of record" means an address designated by a licensee which is part of the public record and which may be disclosed upon request. "Address of record" may be a licensee's home, business or mailing address, but shall not be a post office box unless the licensee also provides another address which includes a street, city, state and zip code.+>> <<-Such notice->> <<+Notice+>> shall be sent to the Board by <<-certified->> mail <<+or by electronic means+>>, <<-return receipt requested, not->> <<+no+>> later than 30 days following the change of address <<+of record+>>.

(b) Failure to notify the Board of any change <<-of->> <<+in a licensee's+>> address <<+of record+>> pursuant to (a) above may result in disciplinary action in accordance with N.J.S.A. 45:1-21(h) and the imposition of the penalties set forth in N.J.S.A. 45:1-25.

(c) Service of any administrative complaint or other Board-initiated process at a licensee's address <<-currently on file with the Board->> <<+of record+>> shall be deemed adequate notice for the purposes of N.J.A.C. 1:1-7.1 and commencement of any disciplinary proceedings.

<< NJ ADC 13:29-1.4 >>

13:29-1.4 Filing constitutes agreement

The act of filing an application for examination, or <<-a certificate by endorsement->> <<+an application for licensure by waiver of examination based upon licensure in another jurisdiction+>>, shall constitute an agreement on the part of the applicant that <<-he->> <<+the applicant+>> will observe and conform to the requirements of this chapter.

<< NJ ADC 13:29-1.5 >>

13:29-1.5 Fees

(a) Fees for <<-original applications, examinations, reexaminations and renewals, for->> Certified Public Accountants, Public Accountants, <<+and accounting firms, including sole proprietorships,+>> partnerships, professional corporations, limited liability companies, or limited liability partnerships <<-and for Certified Public Accountants' license by endorsement->> are as follows:

1. Application fee: $75.00;

<<-2. Examination fee, Registered Municipal Accountant: $225.00;->>

<<-3. Reexamination fee, Registered Municipal Accountant: $175.00;->>

<<-4. Endorsement as Certified Public Accountant: $100.00 plus the application fee as set forth in (a)1 above;->>

<<-5.->><<+2.+>> Initial license fee <<-for Certified Public Accountant, Registered Municipal Accountant, partnerships, professional corporations, limited liability companies, limited liability partnerships->> <<+(for Certified Public Accountants and accounting firms only+>>):

i. During the first year of a triennial registration period: $90.00;

ii. During the second year of a triennial registration period: $60.00;

iii. During the third year of a triennial registration period: $30.00;

<<-6.->><<+3.+>> Triennial registration <<-for Certified Public Accountant, Public Accountant, Registered Municipal Accountant, partnerships, professional corporations, limited liability companies, limited liability partnerships->>: $90.00;

<<-7.->><<+4.+>> Reinstatement of license: $150.00;

<<-8.->><<+5.+>> Late renewal fee: $50.00;

<<-9. Triennial reward, retired or inactive licensees;->>

<<+6. Inactive status renewal+>>: $45.00;

<<-10. Triennial registration fee for Public School Accountant: $50.00.->>

<<+7. Replacement wall certificate: $40.00;+>>

<<+8. Replacement license: $25.00.+>>

<<+(b) Fees for applicants seeking licensure by waiver of examination based upon licensure in another jurisdiction are as follows:+>>

<<+1. Application fee: $75.00;+>>

<<+2. Waiver of examination fee: $100.00.+>>

<<+(c) Fees for Registered Municipal Accountants are as follows:+>>

<<+1. Examination fee: $225.00;+>>

<<+2. Reexamination fee: $175.00;+>>

<<+3. Initial license fee:+>>

<<+i. During the first year of a triennial registration period: $90.00;+>>

<<+ii. During the second year of a triennial registration period: $60.00;+>>

<<+iii. During the third year of a triennial registration period: $30.00;+>>

<<+4. Triennial registration: $90.00;+>>

<<+5. Reinstatement of license: $150.00;+>>

<<+6. Late renewal fee: $50.00;+>>

<<+7. Inactive status renewal: $45.00;+>>

<<+8. Replacement wall certificate: $40.00;+>>

<<+9. Replacement license: $25.00.+>>

<<+(d) Fees for Public School Accountants are as follows:+>>

<<+1. Triennial registration fee: $50.00.+>>

<<-(b)->><<+(e)+>> (No change in text.)

<< NJ ADC 13:29-1A.8 >>

13:29-1A.8 <<-Applications for license by endorsement->> <<+Licensure by waiver of examination for applicants licensed in another jurisdiction; application procedures+>>

(a) Applications for <<-a license by endorsement->> <<+licensure by waiver of examination based upon licensure in another jurisdiction+>> shall be made on a form supplied by the Board that shall require applicants to provide the following information:

1.-4. (No change.)

(b) Applications for licensure by <<-endorsement->> <<+waiver of examination based upon licensure in another jurisdiction+>> shall be accompanied by the following items:

1. The <<-endorsement->> <<+waiver of examination,+>> initial license and application fees <<+for Certified Public Accountants+>> as set forth in N.J.A.C. 13:29-1.5;

2. (No change.)

(c) (No change.)

<< NJ ADC 13:29-1A.10 >>

13:29-1A.10 Licensee requirements; renewal; suspended license; reinstatement<<+; inactive status+>>

(a)-(d) (No change.)

(e) A licensee who has had his or her license suspended pursuant to (c) above may apply to the Board for reinstatement within five years following the date of license expiration. A licensee applying for reinstatement shall submit <<- a renewal application, all past delinquent renewal fees and the reinstatement fee set forth in N.J.A.C. 13:29-1.5, as well as evidence of having completed all delinquent continuing professional education credit hours consistent with the requirements set forth in N.J.A.C. 13:29-6.2(c).->><<+:+>>

<<+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 all continuing professional education credit hours consistent with the requirements set forth at N.J.A.C. 13:29- 6.2(f).+>>

<<+(f) If a Certified Public Accountant has had his or her license suspended pursuant to (c) above for more than five years, and wishes to have the license reinstated, then he or she shall successfully complete the examination required for initial licensure as set forth in N.J.A.C. 13:29-1A.2 and shall submit the documents required by (e) above.+>>

<<+(g) If a Public Accountant has had his or her license suspended pursuant to (c) above for more than five years, and wishes to have the license reinstated, then he or she shall reapply for licensure and shall demonstrate that he or she has maintained proficiency. An applicant who fails to demonstrate to the satisfaction of the Board that he or she has maintained proficiency while suspended may be subject to an examination or other requirements as determined by the Board prior to reinstatement of his or her license.+>>

<<+(h) 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.+>>

<<+(i) A licensee may, upon application to the Board, choose inactive licensure status. A licensee electing inactive status shall not engage in the practice of accountancy in New Jersey for the entire triennial registration period unless the licensee applies to the Board to resume active practice. A licensee on inactive status seeking to resume the practice of accountancy 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; and+>>

<<+3. Evidence of having completed all continuing professional education credit hours consistent with the requirements set forth at N.J.A.C. 13:29- 6.2(f).+>>

<<+(j) A licensee who has elected inactive status shall not use, in any form, the title or designation of certified public accountant, public accountant, accountant or auditor, or any other title or designation that implies that the person holds a valid, active license from the Board. Inactive licensees may use such titles or designations provided the titles or designations contain the word inactive.+>>

<< NJ ADC 13:29-2.3 >>

13:29-2.3 Licensee requirements; renewal; suspended license; reinstatement<<+; inactive status+>>

(a)-(d) (No change.)

(e) A licensee who has had his or her license suspended pursuant to (c) above may apply to the Board for reinstatement within five years following the date of license expiration. A licensee applying for reinstatement shall submit <<- a renewal application, all past delinquent renewal fees and the reinstatement fee set forth in N.J.A.C. 13:29-1.13, as well as evidence of having completed all delinquent continuing professional education credit hours consistent with the requirements set forth in N.J.A.C. 13:29- 6.2(c).->><<+:+>>

<<+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 all continuing professional education credit hours consistent with the requirements set forth at N.J.A.C. 13:29- 6.2(f).+>>

<<+(f) If a Registered Municipal Accountant has had his or her license suspended pursuant to (c) above for more than five years, and wishes to have the license reinstated, then he or she shall successfully complete the examination required for initial licensure as set forth in N.J.A.C. 13:29- 2.2 and shall submit the documents required by (e) above.+>>

<<+(g) 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.+>>

<<+(h) A Registered Municipal Accountant holding an active Certified Public Accountant or Public Accountant license may, upon application to the Board, choose inactive Registered Municipal Accountant licensure status. A Registered Municipal Accountant holding an inactive Certified Public Accountant or Public Accountant license, pursuant to N.J.A.C. 13:29-1A.10, shall elect inactive status. A Registered Municipal Accountant electing inactive status shall not engage in active registered municipal accounting practice in New Jersey for the entire triennial registration period unless the licensee applies to the Board to resume active practice. A Registered Municipal Accountant on inactive status seeking to resume the practice of registered municipal 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 all continuing professional education credit hours consistent with the requirements set forth at N.J.A.C. 13:29- 6.2(f); and+>>

<<+4. Evidence of an active Certified Public Accountant or Public Accountant license.+>>

<<+(i) A Registered Municipal Accountant who has elected inactive status shall not use, in any form, the title or designation of registered municipal accountant or any other title or designation that implies that the person holds a valid, active Registered Municipal Accountant license from the Board. Inactive Registered Municipal Accountant licensees may use such titles or designations provided the titles or designations contain the word inactive.+>>

<< NJ ADC 13:29-3.9 >>

13:29-3.9 <<-Discreditable acts->> <<+(Reserved)+>>

<<-A licensee shall not commit any act that reflects adversely on the licensee's fitness to engage in the practice of public accountancy.->>

<< NJ ADC 13:29-3.13 >>


13:29-3.13 <<-Incompatible occupation->> <<+(Reserved)+>>

<<-A licensee or the licensee's firm shall not concurrently engage in the practice of public accountancy and in any other business or occupation which impairs the licensee's independence or objectivity in rendering professional services.->>

<< NJ ADC 13:29-5.9 >>

13:29-5.9 <<-Reports and reviews not public records->> <<+(Reserved)+>>

<<-(a) Reports submitted by practice units for review in accordance with this subchapter shall not be deemed to be public records and are not required to be disclosed under the Public Records Disclosure Act, N.J.S.A. 47:1A-1 et seq.->>

<<-(b) Comments of reviewers, the Committee and the Board on reports submitted by practice units or workpapers relating thereto, as well as review results are deemed not to be public records and shall not be released to anyone other than the practice unit being reviewed, the Attorney General or his designee, or a Board representative.->>

<< NJ ADC 13:29-6.2 >>

13:29-6.2 Credit-hour requirements

(a) Each applicant for a triennial license renewal is required to complete, during the preceding triennial period, 120 hours of continuing professional education<<+, except as provided in (c) through (f) below+>>. The types of continuing professional education programs and other sources of continuing professional education for which credit hours may be obtained are set forth in N.J.A.C. 13:29-6.5. The 120 hours of continuing professional education shall include at least 24 credit hours in the areas of auditing, review and compilation for persons who are engaged in the practice of public accounting or are involved with the attest function in issuing audit, review or compilation reports. All applicants shall complete at least 72 credit hours of the required 120 credit hours in the technical subjects set forth in N.J.A.C. 13:29-6.3. All applicants shall complete four credit hours of the required 120 credit hours in the New Jersey law and ethics course set forth in N.J.A.C. 13:29- 6.3A. The remaining 44 credit hours of the required 120 credit hours may include subjects specified in N.J.A.C. 13:29-6.4. No licensee shall receive credit for any course offered by a Board-approved continuing professional education sponsor in subjects other than those enumerated in N.J.A.C. 13:29- 6.3, 6.3A or 6.4. For the triennial period commencing January 1, 2003 only, a licensee who has completed an approved law and ethics course, in addition to the required 120 hours of continuing professional education in the preceding triennial period, may apply the four credit hours in the New Jersey law and ethics course toward satisfaction of the requirements of this subsection.

(b) <<-Persons failing to meet the continuing professional education requirements for a triennial renewal period shall not be issued a current license until such continuing professional education requirements have been satisfied. The Board may modify this policy on an individual basis under circumstances specified under N.J.S.A. 45:2B-68.->> Failure to meet triennial continuing professional education requirements may subject a licensee to disciplinary action by the Board.

(c) The Board may, in its discretion, waive requirements for continuing professional education on an individual basis for reasons of hardship such as health, military service, or other due cause. A waiver of continuing professional education requirements granted pursuant to this subsection shall be effective only for the triennial period in which such waiver is granted. If the condition(s) which necessitated the waiver persists into the next triennial period, a licensee shall apply to the Board for the renewal of such waiver for the new triennial period. <<-Inactive accountants shall be exempt from continuing professional education requirements. Inactive accountants are those who do not practice accounting (public or private) or hold themselves out to the public as practicing accountants in any professional capacity. Any inactive accountant who returns to the practice of accounting shall notify the Board prior thereto and shall meet the continuing professional education requirements by completing 120 credit hours of continuing professional education requirements prescribed by this subchapter within the three-year period prior to reinstatement. Accountants inactive for more than one year, but not exceeding two years, shall satisfy at least 80 credit hours of continuing professional education within the two-year period prior to reinstatement. Accountants inactive for one year or less shall satisfy continuing professional education requirements by completing at least 40 credit hours of continuing professional education in the year prior to reinstatement.->>

(d) <<-An applicant, upon successful completion of the Uniform CPA Examination,->> <<+A licensee+>> shall be exempt from the requirements of (a) above for <<-only->> the triennial period during which <<-the applicant successfully completed such examination->> <<+he or she was initially licensed+>>.

<<+(e) Inactive licensees shall be exempt from continuing professional education requirements. Inactive licensees are those who do not practice accounting (public or private), or hold themselves out to the public as practicing accountants in any professional capacity, or use the title or designation of certified public accountant, public accountant, accountant or auditor without the word inactive, pursuant to N.J.A.C. 13:29-1A.10 and 2.3.+>>

<<+(f) A licensee who is inactive pursuant to N.J.A.C. 13:29-1A.10(i) or 2.3(g), or a licensee who has had his or her license suspended pursuant to N.J.A.C. 13:29-1A.10(c) or 2.3(c), who seeks to return to the practice of accounting shall notify the Board prior thereto and shall meet the continuing professional education requirements by completing 120 credit hours of continuing professional education requirements prescribed by this subchapter within the three-year period prior to reinstatement. Accountants inactive or suspended for more than one year, but not exceeding two years, shall satisfy at least 80 credit hours of continuing professional education within the two-year period prior to reinstatement. Accountants inactive or suspended for one year or less shall satisfy continuing professional education requirements by completing at least 40 credit hours of continuing professional education in the year prior to reinstatement.+>>

<< NJ ADC 13:29-6.10 >>

13:29-6.10 Continuing professional education requirements; reciprocity <<-or reinstatement->>

<<-(a) ->>An individual who holds a valid and unrevoked license issued by any state or other political subdivision of the United States and who receives a license to practice in New Jersey under the appropriate provisions of N.J.S.A. 45:2B-42 et seq. <<+and pursuant to N.J.A.C. 13:29-1A.8+>> shall be required to comply with the continuing professional education requirements applicable to all other licensees.

<<-(b) All qualified persons who wish to apply for reinstatement to public practice in New Jersey shall meet the same continuing professional education requirements applicable to all other licensees for the triennial period in which they wish to be reinstated.->>



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