Rule Proposal

​​ISSUE DATE: AUGUST 7, 2017
RULE PROPOSALS
LAW AND PUBLIC SAFETY
DIVISION OF CONSUMER AFFAIRS
NEW JERSEY STATE BOARD OF ACCOUNTANCY

Proposed Amendment: N.J.A.C. 13:29-1.5

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Fees
 
Authorized By: New Jersey State Board of Accountancy, Michela Ross, Acting Executive Director.
 
Authority: N.J.S.A. 45:2B-48.
 
Calendar Reference: See Summary below for explanation of exception to calendar requirement.
 
Proposal Number: PRN 2017-148.
 
Submit written comments by October 6, 2017, to:
 
   Michela Ross, Acting Executive Director
   New Jersey State Board of Accountancy
   124 Halsey Street
   Post Office Box 45000
   Newark, New Jersey 07101
   or electronically at: www.njconsumeraffairs.gov/Proposals/Pages/default.aspx.
 
The agency proposal follows:
 
Summary

The New Jersey State Board of Accountancy (Board) proposes to amend N.J.A.C. 13:29-1.5, which sets forth the Board's fee schedule. Under the statutory authority set forth in N.J.S.A. 45:1-3.2, a professional board's fees must be established in an amount necessary to defray proper expenses incurred in performing its duties, but such fees may not be raised in an amount in excess of the amount estimated to allow the Board to carry out its duties. A fiscal analysis conducted by the Division of Consumer Affairs (Division) revealed that the proposed fee increases are necessary and appropriate to satisfy the Board's current and anticipated expense levels and comport with the requirements of N.J.S.A. 45:1-3.2.

Based on the analysis conducted by the Division, the Board is proposing to increase the license and renewal fees for individuals and initial and renewal registration fees for firms and continuing education sponsors to raise revenues to meet anticipated expense levels consistent with the Board's statutory obligation. The proposed fees are necessary for the Board to perform its statutory obligations to the regulated community and to the public at large to maintain professional and ethical business practices in the practice of accountancy.

The fees established in N.J.A.C. 13:29-1.5 provide the Board with its primary source of revenue and are all allocated to the Board's on-going maintenance costs including: salaries of Board staff and Board member per diem compensation; costs incurred in regulating the licensed community, such as reviewing and filing data submitted by licensees and registered businesses; responding to complaints and concerns of consumers and the public at large; adjudicating disciplinary matters related to licensees and registered businesses; regulating compliance requirements of licensees; and the general regulation of the licensed community. Moreover, the Board must reimburse different divisions and bureaus of the State for services rendered and costs prorated to the Board for various initiatives. These costs include: costs allocable to the Division of Law for legal services, costs incurred by the Enforcement Bureau of the Division for routine and special investigations of licensee practices, and compliance costs of Division-wide initiatives, such as the purchase and implementation of a Division-wide licensing database system.

The Board notes that its fees have not been increased since 1999. Consequently, an increase in fees is now necessary to ensure that the Board will generate sufficient funds to cover its expenses for the next triennial renewal period. The Board is proposing to amend N.J.A.C. 13:29-1.5(a) and (c) to increase the initial license fee for certified public accountants and registered municipal accountants during the first year of a triennial period from $ 90.00 to $ 135.00, during the second year of a triennial period from $ 60.00 to $ 90.00, and during the third year of a triennial period from $ 30.00 to $ 45.00. The Board is also proposing to [page=2457] increase the fee for an accounting firm license from $ 90.00 to $ 135.00 during the first year of a triennial period, from $ 60.00 to $ 90.00 in the second year of a triennial period, and from $ 30.00 to $ 45.00 in the third year of a triennial period. The Board is also proposing to increase the renewal fee for licensed certified public accountants, public accountants, and registered municipal accountants from $ 90.00 to $ 135.00 and for firm registrations from $ 90.00 to $ 135.00. The Board is also proposing to amend N.J.A.C. 13:29-1.5(d) to increase the initial and renewal license fees for public school accountants from $ 50.00 to $ 75.00, and N.J.A.C. 13:29-1.5(e) to increase the initial fee and renewal fee for continuing education sponsors from $ 100.00 to $ 150.00. The Board is also proposing to amend N.J.A.C. 13:39-1.5 to increase the inactive (paid) status renewal fee from $ 45.00 to $ 60.00.

The Board has determined that the comment period for this notice of proposal will be 60 days; therefore, pursuant to N.J.A.C. 1:30-3.3(a)5, this notice is excepted from the rulemaking calendar requirement.
 
Social Impact

The proposed fee increases will have an impact on all individual applicants, all firm registration applicants, continuing education sponsors, and licensees, firm registrants, and continuing education sponsors having their licenses and registrations renewed. The proposed fee increases will have an impact on the Board by enabling the Board to continue to meet the operating expenses incurred while fulfilling its statutory obligations to evaluate applicants for licensure, investigate complaints, initiate appropriate disciplinary and enforcement actions, regulate the practice of public accountancy throughout the State, and oversee public accounting firms that offer services to the general public. The Board believes that the proposed amendments will have a positive impact upon the general public to the extent that the Board will have adequate resources to devote to regulating the provision of public accounting services.
 
Economic Impact

The proposed fee increases will have an economic impact on the 19,824 licensed certified public accountants, 3,211 registered firms, and 618 continuing education sponsors. These licensees, firms, and sponsors will be required to pay increased triennial renewal fees. The proposed fee increases will also have an impact on applicants for initial licensure, firm registrations, and continuing education sponsors who will be required to pay increased initial license and firm registration fees. In addition, the proposed fee increases will have an impact on those licensees who choose to renew their license as inactive paid. The Board has determined that the proposed fee increases are essential for it to raise the revenue necessary to continue to discharge its statutory obligation to regulate the practice of public accountancy services. The proposed fee increases will have an economic impact upon the Board to the extent that the increased fees will generate sufficient revenues to enable the Board to continue to comply with its statutory obligations to regulate the practice of public accountancy. The increased fees are necessary to defray all proper expenses incurred by the Board in compliance with N.J.S.A. 45:1-3.2.
 
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 laws or standards.
 
Jobs Impact

The Board does not anticipate that the proposed amendments will increase or decrease jobs in the State.
 
Agriculture Industry Impact

The Board does not believe that the proposed amendments will have any impact on the agriculture industry of the State.
 
Regulatory Flexibility Analysis

Currently, the Board regulates 19,824 licensed certified public accountants, 3,211 registered firms, and 618 continuing education sponsors. If Board licensees, registered firms, and continuing education sponsors 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 to the fee schedule do not impose any reporting, recordkeeping, or compliance requirements upon licensees nor registered firms, or upon applicants for licensure or firm registration. 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 above. The Board believes that the proposed amendments should be uniformly applied to all licensees and registered firms, and applicants for licensure and firm registrations to ensure the welfare of the general public in the practice public accountancy services and, therefore, no differing compliance requirements for any businesses are provided based upon size.
 
Housing Affordability Impact Analysis

The proposed amendments will have an insignificant impact on the affordability of housing in New Jersey and there is an extreme unlikelihood that the proposed amendments would evoke a change in the average costs associated with housing because the proposed amendments concern increased fees for licensure and firm registration fees for those engaged in the practice of public accountancy.
 
Smart Growth Development Impact Analysis

The proposed amendments will have an insignificant impact on smart growth and there is an extreme unlikelihood that the proposed amendments would evoke a change in housing production in Planning Areas 1 or 2, or within designated centers, under the State Development and Redevelopment Plan because the proposed amendments concern increased fees for licensure and firm registration fees for those engaged in the practice of public accountancy.
 
Full text of the proposal follows (additions indicated in boldface thus; deletions indicated in brackets [thus]):
 
SUBCHAPTER 1.    GENERAL RULES
 
13:29-1.5   Fees
 
(a) Fees for Certified Public Accountants, Public Accountants, and accounting firms, including sole proprietorships, partnerships, professional corporations, limited liability companies, or limited liability partnerships are as follows:
 
1. (No change.)
 
2. Initial license fee (for Certified Public Accountants and accounting firms only):
 
i. During the first year of a triennial registration period: [$ 90.00] $ 135.00;
 
ii. During the second year of a triennial registration period: [$ 60.00] $ 90.00;
 
iii. During the third year of a triennial registration period: [$ 30.00] $ 45.00;
 
3. Triennial registration: [$ 90.00] $ 135.00;
 
4.-5. (No change.)
 
6. Inactive status renewal: [$ 45.00] $ 60.00;
 
7.-8. (No change.)
 
(b) (No change.)
 
(c) Fees for Registered Municipal Accountants are as follows:
 
1.-2. (No change.)
 
3. Initial license fee:
 
i. During the first year of a triennial registration period: [$ 90.00] $ 135.00;
 
ii. During the second year of a triennial registration period: [$ 60.00] $ 90.00;
 
iii. During the third year of a triennial registration period: [$ 30.00] $ 45.00;
 
4. Triennial registration: [$ 90.00] $ 135.00;
 
5.-6. (No change.)
 
7. Inactive status renewal: [$ 45.00] $ 60.00;
 
8.-9. (No change.)
 
(d) Fees for Public School Accountants are as follows:
 
1. Initial license fee: [$ 50.00] $ 75.00;
 
2. Triennial registration fee: [$ 50.00] $ 75.00;
 
3.-4. (No change.)
 
5. Inactive status renewal: [$ 45.00] $ 60.00;
 
6. (No change.)
 
[page=2458] (e) Entities filing an application to become sponsors of continuing professional education shall pay a fee of [$ 100.00] $ 150.00 on a triennial basis for administrative costs and evaluation of programs submitted.