Bill Text: NJ S2163 | 2014-2015 | Regular Session | Introduced
Bill Title: Revises "Accountancy Act of 1997."
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2014-06-30 - Substituted by A2921 (1R) [S2163 Detail]
Download: New_Jersey-2014-S2163-Introduced.html
Sponsored by:
Senator JAMES BEACH
District 6 (Burlington and Camden)
SYNOPSIS
Revises "Accountancy Act of 1997."
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the practice of accounting and amending P.L.1997, c.259.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 5 of P.L.1997, c.259 (C.45:2B-46) is amended to read as follows:
5. The board shall consist of 12 members [, seven] as follows: nine of whom shall have been engaged in the practice [as certified public accountants and two of whom shall have been engaged in practice as public accountants] of public accountancy in this State, with not more than two of them being public accountants, and at least one of whom holds both a Registered Municipal Accountant's license and a Public School Accountant's license; two of whom shall be public members; and one of whom shall be a State executive department member. Each [certified public accountant board member and public accountant board] member engaged in the practice of public accountancy shall maintain an active license in New Jersey during his term of service on the board. Each [certified public accountant member, public accountant member, and public] member, other than the State executive department member, shall be appointed by the Governor for a term of three years and shall hold office until reappointed or a successor is appointed and qualified. Any vacancy on the board shall be filled by the Governor for the unexpired term only.
The public members and the State executive department member shall be appointed by the Governor in accordance with and subject to the provisions of P.L.1971, c.60 (C.45:1-2.1 et seq.).
Except for the State executive department member, no member may serve more than two successive terms in addition to any unexpired term to which he has been appointed, except that any member who has served two such successive terms may be reappointed after an intervening period of one year.
The Governor may remove any member of the board, other than the State executive department member, for cause, upon notice and opportunity to be heard.
(cf: P.L. 2001, c.149, s.2)
2. Section 27 of P.L.1997, c.259 (C.45:2B-68) is amended to read as follows:
27. a. The board shall, as a condition for triennial license renewal, require any person licensed as a "certified public accountant," or "public accountant," to complete 120 credits of continuing professional education during the immediately preceding triennial period of licensure. Persons who are engaged in the practice of public accountancy, or are involved with the attest function in issuing an audit, review or compilation reports, shall have at least 24 of the required credits in the areas of accounting or auditing. Each credit of continuing professional education required pursuant to this section shall represent, or be equivalent to, 50 minutes of verified course attendance at a course or seminar approved by the board.
b. The board may, in its discretion, waive requirements for continuing professional education on an individual basis for hardship reasons such as health, military service, or other due cause and may establish a policy for the continuing education requirements for inactive or retired accountants who remain certified or registered.
c. The board shall not require completion of continuing education credits as a condition for triennial licensure for the initial renewal of licensure, however, any person licensed as a "certified public accountant" shall, within six months prior to initial licensure, or within the first six months following initial licensure, complete an orientation course in topics identified by the board, and conducted by any organization recognized by the board as provided in subsection d. of this section.
d. The board shall:
(1) establish standards for continuing professional education, including the subject matter, contents of courses of study, and the number of credits required;
(2) accredit educational programs and sponsors of educational programs offering credit towards the continuing professional education requirements; and
(3) accredit other equivalent educational programs, such as teaching, conferences, professional seminars, technical reviews, courses with non-hourly attendance, including home study courses, and shall establish procedures for the issuance of credit upon satisfactory proof of the completion of these programs.
(cf: P.L.2007, c.70, s.1)
3. Section 30 of P.L.1997, c.259 (C.45:2B-71) is amended to read as follows:
30. The board shall require any person licensed as a registered municipal accountant, as a condition for triennial licensure, to complete the required number of credits of continuing professional education as determined by the board during each triennial period of licensure. [Persons who are engaged in the practice of municipal auditing shall have at least one-third of the required credits in the areas of accounting or auditing.]
Each credit of continuing professional education required pursuant to this section shall represent or be equivalent to 50 minutes of verified course attendance at a course or seminar approved by the board.
(cf: P.L.1997, c.259, s.30)
4. This act shall take effect immediately.
STATEMENT
This bill changes the composition of the New Jersey State Board of Accountancy. The bill provides that the board shall consist of twelve members as follows: nine shall have been engaged in the practice of public accountancy in this State, with not more than two of them being public accountants, and at least one who holds both a Registered Municipal Accountant's license and a Public School Accountant's license; two shall be public members; and one shall be a State executive department member.
Under current law, as provided in section 5 of P.L.1997, c.259 (C.45:2B-46), the New Jersey State Board of Accountancy is comprised of twelve members as follows: seven certified public accountants; two public accountants; two public members; and one State executive department member.
In addition, the bill amends section 27 of P.L.1997, c.259 (C.45:2B-68), which currently requires certified public accountants to complete an orientation course within the first six months following initial licensure, to permit an individual to take this orientation course within six months prior to initial licensure, or within six months following initial licensure.
The bill also amends section 30 of P.L.1997, 259 (C.45:2B-71), which concerns continuing education standards for registered municipal accountants, to remove the current requirement that registered municipal accountants shall have at least one-third of the required continuing education credits in the areas of accounting or auditing.
