51 N.J.R. 19(a)

VOLUME 51, ISSUE 1, JANUARY 7, 2019
RULE PROPOSALS

Reporter
51 N.J.R. 19(a)
NJ - New Jersey Register  >  2019  >  JANUARY  >  JANUARY 7, 2019  >  RULE PROPOSALS  >  LAW AND PUBLIC SAFETY -- DIVISION OF CONSUMER AFFAIRS

Interested Persons Statement

INTERESTED PERSONS
Interested persons may submit comments, information or arguments concerning any of the rule proposals in this issue until the date indicated in the proposal. Submissions and any inquiries about submissions should be addressed to the agency officer specified for a particular proposal.
The required minimum period for comment concerning a proposal is 30 days. A proposing agency may extend the 30-day comment period to accommodate public hearings or to elicit greater public response to a proposed new rule or amendment. Most notices of proposal include a 60-day comment period, in order to qualify the notice for an exception to the rulemaking calendar requirements of    N.J.S.A. 52:14B-3. An extended comment deadline will be noted in the heading of a proposal or appear in a subsequent notice in the Register.
At the close of the period for comments, the proposing agency may thereafter adopt a proposal, without change, or with changes not in violation of the rulemaking procedures at    N.J.A.C. 1:30-6.3. The adoption becomes effective upon publication in the Register of a notice of adoption, unless otherwise indicated in the adoption notice. Promulgation in the New Jersey Register establishes a new or amended rule as an official part of the New Jersey Administrative Code.
Agency


LAW AND PUBLIC SAFETY > DIVISION OF CONSUMER AFFAIRS > STATE BOARD OF ACCOUNTANCY

Administrative Code Citation

Proposed Amendments: N.J.A.C. 13:29-1.5, 1A.4, 1A.8, 1A.9, 1A.10, 2.3, 3.5, 3.10, 3.16, 5.3, 5.4, 6.2, 6.3, 6.5, 6.6, 6.7, 6.8, and 6.11

Proposed New Rules: N.J.A.C. 13:29-1.7, 1.8, 1.9, 1A.11, and 1A.12

Board of Accountancy Rules

Authorized By: Michela Ross, Acting Executive Director, State Board of Accountancy.
Authority: N.J.S.A. 45:1-15.1, 45:2B-48, and 45:2B-68.
Calendar Reference: See Summary below for explanation of exception to calendar requirement.

Proposal Number: PRN 2019-004.

Submit comments by March 8, 2019, to:
   Michela Ross, Acting Executive Director
   New Jersey State Board of Accountancy
   PO Box 45000
   Newark, New Jersey 07101

   or electronically at: http://www.njconsumeraffairs.gov/Proposals/Pages/default.aspx.
The agency proposal follows:

Summary

The New Jersey Board of Accountancy (Board) is proposing amendments and new rules to implement new laws, update its rules, and codify practices.

The Board proposes to amend the fee schedule to delete N.J.A.C. 13:29-1.5(b)2 because the Board does not charge a waiver of examination fee.

To implement P.L. 2013, c. 182, which modified the renewal, reinstatement, and reactivation requirements for professional or occupational licensees, the Board proposes to delete the existing requirements concerning renewal, reactivation, and reinstatement for each of the three licensure categories that are set forth at N.J.A.C. 13:29-1A.9 (public school accountants), 1A.10 (certified public accountants), and 2.3 (registered municipal accountants). In their place, the Board proposes new N.J.A.C. 13:29-1.7, which sets forth requirements for a triennial license and the election of inactive licensure status, N.J.A.C. 13:29-1.8, which establishes requirements for licensure reactivation, and N.J.A.C. 13:29-1.9, which establishes requirements for reinstatement from an administrative license suspension.

Proposed new N.J.A.C. 13:29-1.7 pertains to license renewal. Proposed subsection (a) details the Board's responsibility for providing licensees with renewal notices. Proposed subsection (b) requires licensees to renew their license prior to license expiration. Proposed subsection (c) permits licensees to place their license on inactive status. The Board also provides the option to select inactive paid or unpaid status. If an applicant chooses inactive paid status, the licensee is required to pay the inactive renewal fee set forth at N.J.A.C. 13:29-1.5, and the licensee will be entitled to obtain all printed information disseminated by the Board to active licensees. Proposed subsection (d) establishes a 30-day grace period after the license has expired, during which time a licensee may still renew the license and continue to practice. Proposed subsection (e) mandates that any license not renewed by the end of the grace period will be administratively suspended. Proposed subsection (f) sets forth the consequences for continued practice after an individual's license has been administratively suspended.

Proposed new N.J.A.C. 13:29-1.8 pertains to reactivation of an inactive license. Consistent with P.L. 2013, c. 182, the Board proposes to prorate the triennial renewal fee, based upon the year of the triennial renewal period in which the renewal application is submitted. Also, consistent with P.L. 2013, c. 182, the proposed new rule eliminates the differing standards for reactivating an inactive license based upon the period the license was inactive. Instead, the Board will assess each application for reactivation on a case-by-case basis. With respect to the continuing professional education required to reactivate an inactive license, if the applicant holds a valid, current license in good standing issued by another state to engage in the practice of accountancy, registered municipal accounting, or public school accounting, as applicable, the Board will accept proof of the applicant having satisfied that state's continuing professional education requirements. Otherwise, the applicant must satisfy the Board's continuing professional education requirements for the triennial period immediately prior to the renewal period for which reactivation is sought. In addition, for any courses that are specifically required in New Jersey, the Board will allow an applicant to take the courses within 12 months following reactivation.

Proposed N.J.A.C. 13:29-1.8(a) lists the documentation that a licensee who has placed his or her license on inactive status must provide to the Board when applying for reactivation of his or her license. Proposed subsection (b) sets forth the criteria that the Board must consider when reviewing an application to determine practice deficiencies and grants the Board discretion to require any applicant found to have practice deficiencies to successfully complete an examination, additional education, training, supervision, or other requirements as a condition of reactivation.

Proposed new N.J.A.C. 13:29-1.9 relates to reinstatement of a license that has been administratively suspended. Consistent with P.L. 2013, c. 182, the proposed new rule eliminates the differing standards for reinstating an administratively suspended license based upon the period the license was suspended. Instead, the Board will assess each application for reinstatement on a case-by-case basis. In addition, applicants seeking reinstatement will be required to pay the renewal fees for the current and one prior renewal period, instead of all past delinquent renewal fees. With respect to the continuing professional education required to reinstate an administratively suspended license, if the applicant holds a valid, current license in good standing issued by another state to engage in the practice of accountancy, registered municipal accounting, or public school accounting, as applicable, the Board will accept proof of the applicant having satisfied that state's continuing professional education requirements. Otherwise, the applicant must satisfy the Board's continuing professional education requirements for the triennial period immediately prior to the renewal period for which reinstatement is sought. In addition, for any courses that are specifically required in New Jersey, the Board will allow an applicant to take the courses within twelve months following reactivation. Proposed subsection (a) lists the documentation that a licensee whose license has been administratively suspended must provide to the Board in order to apply for reinstatement of his or her license. Proposed subsection (b) sets forth the criteria that the Board must consider when reviewing an application to determine whether there are practice deficiencies and grants the Board discretion to require any applicant found to have practice deficiencies to successfully complete an examination, additional education, training, supervision, or other requirements as a condition of reinstatement.

The Board proposes to amend the heading of Subchapter 1A to include firm registration. The Board also proposes to amend N.J.A.C. 13:29-1A.4(d) to change "examination window" to "testing window" as determined by the American Institute of Certified Public Accountants (AICPA), the entity that determines when the Certified Public Accountant examination is offered. In addition, the Board proposes to amend N.J.A.C. 13:29-1A.8(b) to delete the waiver of examination fee, which the Board does not charge. In addition, the Board proposes new N.J.A.C. 13:29-1A.8(c) to codify its practice for licensing candidates, without examination, based upon a credential from a foreign jurisdiction. Such applicants must pay the initial license and application fees, submit proof of successfully completing the International Qualification Exam (IQEX) administered by the National Association of State Boards of Accountancy, and submit written verification that the applicant's license is in good standing.

As discussed above, the Board proposes to delete the existing requirements concerning renewal, reactivation, and reinstatement for each licensure category that is set forth at N.J.A.C. 13:29-1A.9 (public school accountants) and 1A.10 (certified public accountants). In their place, the [page=20] Board proposes new N.J.A.C. 13:29-1.7, which sets forth requirements for triennial license and the election of inactive licensure status, N.J.A.C. 13:29-1.8, which establishes requirements for licensure reactivation, and N.J.A.C. 13:29-1.9, which establishes requirements for reinstatement from an administrative license suspension. Accordingly, the Board proposes to amend the headings of N.J.A.C. 13:29-1A.9 and 1A.10 to remove reference to "renewal; suspended license; reinstatement; and inactive status." In addition, the Board proposes to delete N.J.A.C. 13:29-1A.9(b) through (g) and N.J.A.C. 13:29-1A.10(c) through (j).

The Board proposes new N.J.A.C. 13:29-1A.11 to codify the requirements for triennial firm registration. In accordance with N.J.S.A. 45:2B-54 and 55, each firm that is required to register as a firm engaged in the practice of attest services or public accountancy must submit an application for registration, the application and licensing fees, a copy of the firm's letterhead, the forms regarding Peer Review compliance, and, if applicable, a copy of the Business Registration Certificate as proof of having registered with the New Jersey Division of Revenue.

Proposed new N.J.A.C. 13:29-1A.12 sets forth the relocated existing requirement from N.J.A.C. 13:29-6.2(d) for new licensees to take an orientation course. In addition, the Board proposes to specify that, pursuant to N.J.S.A. 45:2B-68, applicants may elect to take this course within six months prior to initial licensure.

As discussed above, the Board proposes to delete the existing requirements concerning renewal, reactivation, and reinstatement for each of the three licensure categories that are set forth at N.J.A.C. 13:29-2.3 (registered municipal accountants). In its place, the Board proposes new N.J.A.C. 13:29-1.7, which sets forth requirements for triennial license and the election of inactive licensure status, N.J.A.C. 13:29-1.8, which establishes requirements for licensure reactivation, and N.J.A.C. 13:29-1.9, which establishes requirements for reinstatement from an administrative license suspension. Accordingly, the Board proposes to amend the heading of N.J.A.C. 13:29-2.3 to remove reference to "renewal; suspended license; reinstatement; and inactive status." In addition, the Board proposes to delete N.J.A.C. 13:29-2.3(c) through (h).

The Board proposes to amend N.J.A.C. 13:29-3.5 to add paragraph (a)1 to specify that "other pronouncements having similar generally recognized authority" encompasses both domestic and international pronouncements. In addition, the Board proposes to amend the existing rule to make an administrative correction by changing "of" to "or," to add "issued by" preceding "the Public Company Accounting Oversight Board," and to clarify who has to justify deviations from the auditing standards.

In addition, the Board proposes to amend N.J.A.C. 13:29-3.10(a), which concerns advertising that contains false, fraudulent, misleading, deceptive, or unfair statements and sets forth examples of such statements. The Board proposes to specify that solicitation by the use of coercion, or over-reaching or harassing conduct is prohibited. In addition, the Board proposes to delete paragraph (a)3 to remove testimonial or laudatory statements from the examples of a false, fraudulent, misleading, deceptive, or unfair statement. The Board believes that this change is necessary because of the use of social media and the recognition that firms and licensees have limited ability to control the statements posted by third-parties on social media sites. The Board notes, however, that firms and licensees continue to be prohibited from using or participating in the use of any form of public communication that contains a false, fraudulent, misleading, deceptive, or unfair statement. The Board also proposes to add new paragraph (a)7 to set forth that a statement or claim that implies the ability to influence any court, tribunal, regulatory agency, or similar body or official is considered false, fraudulent, misleading, deceptive or unfair.

The Board is concerned that the existing reference to "working papers" at N.J.A.C. 13:29-3.16(a)4 is being misconstrued to include audit test work that is proprietary information and not part of the client record. Accordingly, to provide clarification, the Board proposes to delete and replace N.J.A.C. 13:29-3.16(a)4. Proposed new N.J.A.C. 13:29-3.16(a)4 provides that a licensee or the licensee's firm must furnish, to the licensee's client or former client, the licensee-prepared client records that would ordinarily constitute part of the client's books and records, are contained in the licensee's or his or her firm's working papers, and are not otherwise available to the client. The Board further proposes to specify that copies of such records must be produced to the client in the same manner, media, and format as the record was created by the licensee.

The Board proposes to update the Board's website address at N.J.A.C. 13:29-5.3(b). In addition, the Board proposes to amend N.J.A.C. 13:29-5.4(b) to change the timeframe in which a firm must seek an exemption from participation in the Peer Review Program. The Board proposes that, instead of on an annual basis, each triennial registration cycle, the firm must seek the exemption. The Board believes that this change will encourage compliance with the rule's provisions and will reduce the administrative burden of processing the requests on an annual basis.

Subchapter 6 sets forth the Board's continuing professional education (CPE) requirements. Throughout the subchapter, the Board proposes to change all references to "credit hour(s)" to "credit(s)" to be consistent with industry-recognized terminology. Accordingly the Board is proposing to amend N.J.A.C. 13:29-6.2, 6.3, 6.5, 6.6, 6.7, and 6.11.

In addition, the Board is proposing to amend the number of CPE credits required for technical subjects set forth at N.J.A.C. 13:29-6.2(a). Consistent with the Uniform Accountancy Act Model Rules (UAA Model Rules), the Board is proposing that 60 credits, which is one-half of the required total, be in technical subjects. As a result of this proposed change, the Board is correspondingly proposing to amend the number of remaining credits from 44 to 56.

The Board proposes to delete from N.J.A.C. 13:29-6.2(d), and propose for relocation to N.J.A.C. 13:29-1.12, the requirement for new licensees to complete an orientation course. In accordance with the changes discussed above to the Board's rules concerning reactivation and reinstatement, the Board is proposing to amend N.J.A.C. 13:29-6.2(e) to update the cross-reference. In addition, the Board proposes to delete subsection (f) because the requirements for continuing professional education requirements to reactive or reinstate a license have been modified in accordance with N.J.S.A. 45:1-7.4 and are set forth, respectively, at proposed N.J.A.C. 13:29-1.7 and 1.8.

Consistent with the proposed changes to N.J.A.C. 13:29-6.2(a) concerning the number of CPE credits in technical subjects, the Board similarly proposes to amend N.J.A.C. 13:29-6.3(a). In addition, to be consistent with terminology recognized in the industry, the Board proposes to replace N.J.A.C. 13:29-6.3(a)4 to change "Computer Science" to "Information Technology."

In addition, the Board is proposing several changes to the sources of CPE programs and to the amount of credits for CPE programs offered by national or state professional organizations recognized by the Board. The Board proposes to amend N.J.A.C. 13:29-6.5(a)2 to clarify that CPE will not be granted for attending college or university courses that satisfy the licensee's initial professional licensure requirements, or for Certified Public Accountancy examination preparation/review courses. In addition, the Board proposes to amend N.J.A.C. 13:29-6.5(a) to remove the minimum increment that CPE credits would be awarded for CPE programs, including nano learning and blended learning programs, offered by national or state professional organizations. The Board also determined that it will recognize all continuing professional education in the lowest increment awarded, even if it is less than one full credit. CPE will continue to be based upon a 50-minute instructional hour.

A nano learning program is a tutorial program designed to permit a participant to learn a given subject in a 10-minute time frame through the use of electronic media (including technology applications and processes, and computer-based or web-based technology) and without interaction with a real-time instructor. A nano learning program differs from a self-study program in that it is typically focused on a single learning objective and is not paper-based. It is not a group program, nor is it a substitute for comprehensive programs addressing complex issues. A blended learning program is an educational program incorporating multiple learning formats. As of September 1, 2016, NASBA and AICPA recognize nano learning programs and CPE for these programs are awarded in .2 increments. In addition, NASBA and AICPA now allow self-study providers to award a minimum of .5 credits for self-study. The Board believes that amending its rules to recognize these types of CPE programs in the increments awarded by the CPE sponsors will expand the learning opportunities for licensees. The Board also believes that because these types of learning programs must meet the requirements set forth in the AICPA/NASBA's Statement on Standards for Continuing Professional [page=21] Education Programs (CPE Standards), they will ensure the level of quality for these learning opportunities. The Board, therefore, proposes to amend N.J.A.C. 13:29-6.5(a)4 to include blended learning programs, update the applicable CPE Standard, and update the website on which the CPE Standards are available. In addition, the Board proposes to add new paragraph (a)6 regarding nano learning programs that meet the requirements of Standard No. 10 of the CPE Standards and to award CPE credits in accordance with Standard No. 16 of the CPE Standards; these standards are proposed for incorporation by reference. The Board also proposes to add new paragraph (a)7 to specifically recognize Board-approved continuing professional education sponsors, as provided for at N.J.A.C. 13:29-6.6.

Similar to the proposed changes to N.J.A.C. 13:29-6.5(a)2ii, the Board proposes to amend subsection (c) to clarify that continuing professional education credit shall not be awarded for instructing college or university courses that satisfy initial professional licensure requirements or for CPA examination preparation/review courses.

The Board proposes to amend N.J.A.C. 13:29-6.6(a) and 6.7(a) to remove the minimum measurement for continuing professional education credit. The Board also proposes to amend N.J.A.C. 13:29-6.7(a) to specifically set forth that the Board will accept partial credits of continuing professional education.

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 proposed amendments and new rules will have a positive social impact upon the regulated community and the public by setting forth clear practice standards that will ensure the public's welfare.

The Board believes that the proposed new rules at N.J.A.C. 13:29-1.7, 1.8, and 1.9, implementing P.L. 2013, c. 182, will make it easier for licensees to resume, after a period of inactivation or administrative suspension, engaging in the practice of accountancy, registered municipal accounting, or public school accounting, as applicable. The proposed new rules allow licensees to submit proof of compliance with another state's continuing professional education requirements. In addition, proposed new N.J.A.C. 13:29-1.9 no longer mandates retaking the licensing examination if the period of administrative suspension is for more than five years, but provides the Board the flexibility to determine if remediation is necessary to continue to ensure the welfare of the public.

The Board believes that proposed new N.J.A.C. 13:29-1A.8(c) will make the process for licensure clearer for applicants with a credential from a foreign jurisdiction. Similarly, proposed new N.J.A.C. 13:29-1A.11 will make the process for triennial firm registration clearer for firms that are required to register in accordance with N.J.S.A. 45:2B-54 or 55.

The Board believes that the proposed amendments to N.J.A.C. 13:29-3.5 provide licensees clear guidance that with respect to auditing standards the reference to "other pronouncements having similar generally recognized authority" encompasses both domestic and international pronouncements. In addition, the Board believes that the proposed amendments to N.J.A.C. 13:29-3.10 will have a positive social impact by ensuring that the regulated community is aware of impermissible forms of advertising and will protect the public from false, fraudulent, misleading, deceptive, or unfair statements or claims, and from solicitation by coercion or over-reaching or harassing conduct.

The Board believes that the proposed amendments to N.J.A.C. 13:29-3.16(a)4 will have a positive social impact by clarifying, for the regulated community and the public, as to the type of documents that encompass a client record.

The Board believes that the proposed amendment to N.J.A.C. 13:29-5.4 will reduce the administrative burden of annually applying for an exemption from the Peer Review Program.

In addition, the Board believes that the proposed amendments to N.J.A.C. 13:29-6.2(a) redistributing the continuing professional education credits to be consistent with that of the UAA Model Rules will have a positive social impact upon licensees. The Board also believes that the proposed amendments to N.J.A.C. 13:29-6.5 will have a positive social impact on licensees by making it clear as to when the Board will accept continuing professional education for university or college courses. In addition, the Board believes that the proposed amendments to N.J.A.C. 13:29-6.5 and 6.7 will have a positive social impact on licensees by expanding the sources of continuing professional education.

Economic Impact

Proposed new N.J.A.C. 13:29-1.7, 1.8, and 1.9 will continue to have an economic impact on applicants for renewal, reactivation, and reinstatement. Under proposed new N.J.A.C. 13:29-1.7, 1.8, and 1.9, licensees will continue to bear the costs associated with license renewal, reactivation, and reinstatement. However, the dollar amount for each of the existing fees for renewal, reactivation, and reinstatement remain unchanged. In addition, N.J.A.C. 13:29-1.7, concerning licensure renewal, may have an economic impact upon licensees to the extent that licensees who submit their renewal applications within 30 days of the expiration date must submit a late fee, in addition to the standard renewal fee charged by the Board.

The Board believes that proposed new N.J.A.C. 13:29-1.8 may have a positive economic impact upon licensees to the extent they seek to reactivate their license in the second or third year of the triennial renewal period because the fee is prorated. In addition, the Board believes that proposed new N.J.A.C. 13:29-1.8 and 1.9 may have a positive economic impact upon licensees seeking to reactivate or reinstate their license. Accepting continuing professional education requirements of another state may save licensees the costs associated with completing the Board's continuing professional education requirements. In addition, applicants for reinstatement will no longer need to complete the continuing professional education requirements for up to three triennial periods.

Proposed new N.J.A.C. 13:29-1.8 and 1.9 will continue to have an economic impact upon licensees seeking reactivation or reinstatement of their license to the extent the Board deems them in need of remediation and they are required to pass an examination or complete additional education or training.

The Board believes that the amendments to N.J.A.C. 13:29-5.4 will have a positive economic impact on those firms that are exempt from enrollment and participation in the Peer Review Program to the extent costs are reduced by requiring firms to seek the exemption on a triennial instead of an annual basis.

Federal Standards Statement

A Federal standards analysis is not required because the proposed amendments and new rules 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 believe that the proposed amendments and new rules will result in the creation or the loss of jobs in the State.

Agriculture Industry Impact

The Board does not believe that the proposed amendments and new rules will have any impact on the agriculture industry of the State.

Regulatory Flexibility Analysis

Currently, the Board licenses approximately 19,420 accountants, and registers approximately 3,160 accounting firms and 520 continuing professional education sponsors. If these accountants, firms, and 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 and new rules do not impose any new recordkeeping or reporting requirements on licensed accountants, registered accounting firms, or continuing professional education sponsors. The proposed amendments and new rules impose compliance requirements, which are discussed in the Summary above. No professional services will be needed to comply with the proposed amendments and new rules. The costs of compliance with the proposed amendments and new rules are discussed in the Economic Impact statement above. The Board believes that the proposed amendments and new rules should be uniformly applied to all licensed accountants, registered accounting firms, and continuing professional education sponsors in order to ensure the welfare of the general public in the provision of public accounting services. Therefore, no differing compliance requirements for licensed accountants, [page=22] registered firms, or continuing professional education sponsors are provided based upon the size of the business.

Housing Affordability Impact Analysis

The proposed amendments and new rules will have an insignificant impact on the affordability of housing in New Jersey and there is an extreme unlikelihood that the proposed amendments and new rules would evoke a change in the average costs associated with housing because the proposed amendments and new rules concern requirements for licensure, license renewal, reactivation, and reinstatement, continuing professional education, and professional standards for certified public accountants and accounting firms.

Smart Growth Development Impact Analysis

The proposed amendments and new rules will have an insignificant impact on smart growth and there is an extreme unlikelihood that the proposed amendments and new rules would evoke a change in housing production in Planning Areas 1 or 2, or within designated centers, under the State Development and Redevelopment Plan in New Jersey because the proposed amendments and new rules concern requirements for licensure, license renewal, reactivation, and reinstatement, continuing professional education, and professional standards for certified public accountants and accounting firms.

Racial and Ethnic Community Criminal Justice and Public Safety Impact

The Board has evaluated this rulemaking and determined that it will not have an impact on pretrial detention, sentencing, probation, or parole policies concerning adults and juveniles in the State. Accordingly, no further analysis is required.

Regulations

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) (No change.)

(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)-(e) (No change.)

13:29-1.7   [(Reserved)] License renewal

(a) The Board shall send a notice of renewal to each licensee, at least 60 days prior to the expiration of the license. The notice of renewal shall explain inactive renewal and advise the licensee of the option to renew as inactive. If the notice to renew is not sent 60 days prior to the expiration date, no monetary penalties or fines shall apply to the holder for failure to renew, provided that the license is renewed within 60 days from the date the notice is sent or within 30 days following the date of license expiration, whichever is later.

(b) A licensee shall renew his or her license for a period of three years from the last expiration date. The licensee shall submit 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.

(c) A licensee may renew his or her license by choosing inactive status. A licensee electing to renew his or her license as inactive shall not engage in the practice of accountancy, registered municipal accounting, or public school accounting, as applicable, or hold himself or herself out as eligible to engage in the practice of accountancy, registered municipal accounting, or public school accounting, as applicable, in New Jersey, until such time as the license is returned to active status.

1. A licensee choosing inactive status shall be provided with the option of choosing either inactive paid or inactive unpaid status. A licensee electing inactive paid status shall pay the applicable inactive renewal fee set forth in N.J.A.C. 13:29-1.5, which shall entitle the licensee to obtain all printed information disseminated by the Board to all active licensees. A licensee choosing inactive unpaid status shall not be required to pay the inactive renewal fee and shall not receive printed information disseminated by the Board to active licensees. A licensee choosing inactive paid or unpaid status shall not engage in the practice of accountancy, registered municipal accounting, or public school accounting, as applicable, in New Jersey, until such time as the license is returned to active status.

2. A licensee who has elected inactive status shall not use, in any form, the title or designation of certified public accountant, public accountant, accountant, auditor,orregistered municipal accountant, as applicable, 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.

3.A holder of a license as a Public School Accountant or Registered Municipal Accountant who elects to place the qualifying license (for example, Certified Public Accountant or Public Accountant license) in inactive status, shall also elect inactive status for his or her Public School Accountant and/or Registered Municipal Accountant license, as applicable.

(d) If a licensee does not renew the license prior to its expiration date, the licensee may renew the license within 30 days of its expiration by submitting a renewal application, a renewal fee, and a late fee as set forth in N.J.A.C. 13:29-1.5. During this 30-day period, the license shall be valid and the licensee shall not be deemed practicing without a license.

(e) A licensee who fails to submit a renewal application within 30 days of license expiration shall have his or her license suspended without a hearing.

(f) A licensee who continues to engage in the practice of accountancy, registered municipal accounting, or public school accounting, as applicable, with a suspended license shall be deemed to be engaging in the unauthorized practice of accountancy, registered municipal accounting, or public school accounting, as applicable, and shall be subject to action consistent with N.J.S.A. 45:1-14 et seq., even if no notice of suspension has been provided to the individual.

13:29-1.8   [(Reserved)] License reactivation

(a) A licensee who holds an inactive license, pursuant to N.J.A.C. 13:29-1.7(c), may apply to the Board for reactivation of the inactive or retired license. A licensee seeking reactivation of an inactive or retired license shall submit:

1. A renewal application;

2. A certification of employment listing each job held during the period the license was inactive, which includes the name, address, and telephone number of each employer;

3. The renewal fee for the triennial period for which reactivation is sought as set forth in N.J.A.C. 13:29-1.5.

i. If the renewal application is sent during the first year of the triennial period, the applicant shall submit the renewal fee as set forth in N.J.A.C. 13:29-1.5.

ii. If the renewal application is sent during the second year of the triennial period, the applicant shall submit two-thirds of the renewal fee as set forth in N.J.A.C. 13:29-1.5.

iii. If the renewal application is sent during the third year of the triennial period, the applicant shall submit one-third of the renewal fee as set forth in N.J.A.C. 13:29-1.5; and

4. Evidence of having completed all continuing professional education credits that were required to be completed during the triennial period immediately prior to the renewal period for which reactivation is sought, consistent with the requirements set forth in N.J.A.C. 13:29-6.2.

i. An applicant who holds a valid, current license in good standing issued by another state to engage in the practice of accountancy, registered municipal accounting, or public school accounting, as applicable, and submits proof of having satisfied that state's continuing professional education requirements for that license, shall be deemed to have satisfied the requirements of this paragraph. If the other state does not have any continuing professional education requirements, the requirements of this paragraph shall apply.

ii. To the extent that specific courses are required to satisfy the continuing professional education requirement for, or are required to [page=23] have been satisfied prior to, the triennial period for which reactivation is sought, the Board will allow applicants to take the courses within 12 months following reactivation.

(b) If a Board review of an application establishes a basis for concluding that there may be practice deficiencies in need of remediation prior to reactivation, the Board may require the applicant to submit to and successfully pass an examination or an assessment of skills, a refresher course, or other requirements as determined by the Board prior to reactivation of the license. If that examination or assessment identifies deficiencies or educational needs, the Board may require the applicant, as a condition of reactivation of licensure, to take and successfully complete any education or training or to submit to any supervision, monitoring, or limitations as the Board determines is necessary to assure that the applicant practices with reasonable skill and safety. The Board, in its discretion, may restore the license subject to the applicant's completion of the training within a period of time prescribed by the Board following the restoration of the license. In making its determination whether there are practice deficiencies requiring remediation, the Board shall consider the following factors including, but not limited to:

1. Length of time license was inactive;

2. Employment history;

3. Professional history;

4. Disciplinary history and any action taken against the applicant's license by any licensing board;

5. Actions affecting the applicant's privileges taken by any institution, organization, or employer related to the practice of accountancy, registered municipal accounting, or public school accounting, as applicable, or other professional or occupational practice in New Jersey, any other state, the District of Columbia, or in any other jurisdiction;

6. Pending proceedings against a professional or occupational license issued to the licensee by a professional board in New Jersey, any other state, the District of Columbia, or in any other jurisdiction; and

7. Civil litigation related to the practice of accountancy, registered municipal accounting, or public school accounting, as applicable, or other professional or occupational practice in New Jersey, any other state, the District of Columbia, or in any other jurisdiction.

13:29-1.9   [(Reserved)] License reinstatement

(a) A licensee who has had his or her license suspended pursuant to N.J.A.C 13:29-1.7(e) may apply to the Board for reinstatement. A licensee applying for reinstatement shall submit:

1. A reinstatement application;

2. A certification of employment listing each job held during the period of suspended license, which includes the names, addresses, and telephone numbers of each employer;

3. The renewal fee for the triennial period for which reinstatement is sought;

4. The past due renewal fee for the triennial period immediately preceding the renewal period for which reinstatement is sought;

5. The reinstatement fee set forth in N.J.A.C. 13:29-1.5; and

6. Evidence of having completed all continuing professional education credits that were required to be completed during the triennial period immediately prior to the renewal period for which reinstatement is sought, consistent with the requirements set forth in N.J.A.C. 13:29-6.2.

i. An applicant who holds a valid, current license in good standing issued by another state to engage in the practice of accountancy, registered municipal accounting, or public school accounting, as applicable, and submits proof of having satisfied that state's continuing professional education requirements for that license, shall be deemed to have satisfied the requirements of (a)6 above. If the other state does not have any continuing professional education requirements, the requirements of (a)6 above shall apply.

ii. To the extent that specific courses are required to satisfy the continuing professional education requirement for, or are required to have been satisfied prior to, the triennial period for which reinstatement is sought, the Board will allow applicants to take the courses within 12 months following reinstatement.

(b) If a Board review of an application establishes a basis for concluding that there may be practice deficiencies in need of remediation prior to reinstatement, the Board may require the applicant to submit to, and successfully pass, an examination or an assessment of skills, a refresher course, or other requirements as determined by the Board prior to reinstatement of the license. If that examination or assessment identifies deficiencies or educational needs, the Board may require the applicant as a condition of reinstatement of licensure to take and successfully complete any education or training or to submit to any supervision, monitoring, or limitations as the Board determines is necessary to assure that the applicant practices with reasonable skill and safety. The Board, in its discretion, may restore the license subject to the applicant's completion of the training within a period of time prescribed by the Board following the restoration of the license. In making its determination whether there are practice deficiencies requiring remediation, the Board shall consider the following factors including, but not limited to:

1. Length of time license was suspended;

2. Employment history;

3. Professional history;

4. Disciplinary history and any action taken against the applicant's license by any licensing board;

5. Actions affecting the applicant's privileges taken by any institution, organization, or employer related to the practice of accountancy, registered municipal accounting, or public school accounting, as applicable, or other professional or occupational practice in New Jersey, any other state, the District of Columbia, or in any other jurisdiction;

6. Pending proceedings against a professional or occupational license issued to the licensee by a professional board in New Jersey, any other state, the District of Columbia, or in any other jurisdiction; and

7. Civil litigation related to the practice of accountancy, registered municipal accounting, or public school accounting, as applicable, or other professional or occupational practice in New Jersey, any other state, the District of Columbia, or in any other jurisdiction.

SUBCHAPTER 1A. EXAMINATION AND LICENSURE; FIRM REGISTRATION

13:29-1A.4   Granting of examination credit; reexamination; conditional credit

(a)-(c) (No change.)

(d) Applicants shall not retake a failed test section(s) in the same [examination] testing window. For purposes of this section, "[examination] testing window" means a three-month calendar quarter during which applicants have an opportunity to take the Certified Public Accountant Examination [(comprised of the first two months of such quarter during which the examination is available to be taken and the final month of such quarter during which the examination will not be offered while routine maintenance is performed and the item bank is refreshed)], as determined by the American Institute of Certified Public Accountants (AICPA).

(e)-(g) (No change.)

13:29-1A.8   Licensure by waiver of examination for applicants licensed in another jurisdiction; application procedures
(a) (No change.)

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

1. The [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)Applications for licensure by waiver of examination based upon a credential from a foreign jurisdiction shall be made on a form supplied by the Board and shall be accompanied by the following items:

[page=24] 1. The initial license and application fees for Certified Public Accountants as set forth in N.J.A.C. 13:29-1.5;

2. Proof of successful completion of the International Qualification Exam (IQEX) administered by the National Association of State Boards of Accountancy; and

3. Written verification from the issuing authority in all foreign jurisdictions where the applicant holds a license, that the applicant's license in the jurisdiction is valid and in good standing, and setting forth the applicant's full name, license number, and the date the license was issued.

[(c)] (d) (No change in text.)

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 shall be granted a Public School Accountant's license upon application to the Board, and the payment of the initial license fee 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;

5. Evidence of holding an active New Jersey Certified Public Accountant, Public Accountant or Registered Municipal Accountant license; and

6. 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 during the period following license expiration, not to exceed the number of days short of 60 before the renewal was issued.

(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 licensee electing inactive status shall be provided with the option of choosing either inactive paid or inactive unpaid status. A licensee electing inactive paid status shall pay the inactive renewal fee set forth in N.J.A.C. 13:29-1.5(d), which shall entitle the licensee to obtain all printed information disseminated by the Board to all active licensees. A licensee choosing inactive unpaid status shall not be required to pay the inactive renewal fee but shall not be entitled to obtain printed information disseminated by the Board to active licensees. 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 paid or unpaid 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 New Jersey 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.]

13:29-1A.10 Licensee requirements[; renewal; suspended license; reinstatement; inactive status]

(a)-(b) (No change.)

[(c) A Certified Public Accountant shall renew his or her 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 license suspended without a hearing.

(d) A licensee who continues to engage in the practice of accountancy with a suspended license shall be deemed to be engaging in the unauthorized practice of accountancy and shall be subject to the penalties set forth in N.J.S.A. 45:1-25 et seq.

(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:

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.

(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)1 through 4 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 during the period following license expiration, not to exceed the number of days short of 60 before the renewal was issued.

(i) A licensee may, upon application to the Board, choose inactive licensure status. A licensee electing inactive status shall be provided with the option of choosing either inactive paid or inactive unpaid status. A licensee electing inactive paid status shall pay the inactive renewal fee set forth in N.J.A.C. 13:29-1.5(a), which shall entitle the licensee to obtain [page=25] all printed information disseminated by the Board to all active licensees. A licensee choosing inactive unpaid status shall not be required to pay the inactive renewal fee but shall not be entitled to obtain printed information disseminated by the Board to active licensees. A licensee electing inactive paid or unpaid 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 120 continuing professional education credit hours in the three-year period prior to reinstatement.

(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.]

13:29-1A.11      Triennial firm registration

(a) In accordance with N.J.S.A. 45:2B-54 or 55, an entity that is required to register as a firm engaged in the practice of attest services or public accountancy shall submit an application for registration, which shall be accompanied by the application and licensing fees as set forth in N.J.A.C. 13:29-1.5. Applications shall also be accompanied by:

1. A copy of the firm's letterhead;

2. The forms regarding Peer Review compliance that are available on the Board's website athttp://www.njconsumeraffairs.gov/acc/Pages/default.aspx;and

3. If the business is a legal entity, such as a corporation, limited partnership, or limited liability company, a copy of the Business Registration Certificate as proof of having registered with the New Jersey Division of Revenue (seehttp://www.nj.gov/njbusiness/registration).

(b) Each registered firm shall triennially register with and pay to the Board the triennial registration fee as set forth in N.J.A.C. 13:29-1.5.

13:29-1A.12      Orientation course
Within six months of initial licensure in New Jersey, a licensee shall complete an orientation course, which at a minimum, shall include a four-credit course in New Jersey law and ethics approved by the Board pursuant to N.J.A.C. 13:29-6.3A and 6.6(c). Within 30 days of completing the New Jersey law and ethics course, a new licensee shall send a copy of the course completion certificate to the Board. This orientation course shall satisfy the four credits in the New Jersey law and ethics course required at N.J.A.C. 13:29-6.2(d). A list of Board-approvedNew Jersey Law & Ethics Course Providers is available on the Board website athttp://www.njconsumeraffairs.gov/acc/Pages/default.aspx. Pursuant to N.J.S.A. 45:2B-68, applicants may elect to take this course within six months prior to initial licensure to satisfy this requirement.

SUBCHAPTER 2.   REGISTERED MUNICIPAL ACCOUNTANTS

13:29-2.3   Licensee requirements[; renewal; suspended license; reinstatement; inactive status]

(a)-(b) (No change.)

[(c) The holder of a Registered Municipal Accountant's license shall renew the license for a period of three years from the last expiration date. A 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 license suspended without a hearing.

(d) 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.

(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:

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;

5. Evidence of holding an active New Jersey Certified Public Accountant or Public Accountant license; and

6. Evidence of having completed 120 continuing professional education credit hours in the three-year period prior to reinstatement.

(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)1 through 5 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 during the period following license expiration, not to exceed the number of days short of 60 before the renewal was issued.

(h) A Registered Municipal Accountant holding an active New Jersey 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 licensee electing inactive status shall be provided with the option of choosing either inactive paid or inactive unpaid status. A licensee electing inactive paid status shall pay the inactive renewal fee set forth in N.J.A.C. 13:29-1.5(c), which shall entitle the licensee to obtain all printed information disseminated by the Board to all active licensees. A licensee choosing inactive unpaid status shall not be required to pay the inactive renewal fee but shall not be entitled to obtain printed information disseminated by the Board to active licensees. A Registered Municipal Accountant electing inactive paid or unpaid 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 120 continuing professional education credit hours in the three-year period prior to reinstatement; and

4. Evidence of an active New Jersey 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.]

[page=26] SUBCHAPTER 3.           RULES OF PROFESSIONAL CONDUCT

13:29-3.5   Auditing standards
(a) A licensee [of] or the licensee's firm shall not permit the licensee's name to be associated with financial statements in such a manner as to imply that the licensee is acting as an independent public accountant with respect to such financial statements unless the licensee has complied with applicable generally accepted auditing standards (GAAS) and, if applicable, generally accepted governmental auditing standards (GAGAS). Statements on Auditing Standards (SAS) issued by the American Institute of Certified Public Accountants (AICPA), and issued by the Public Company Accounting Oversight Board (PCAOB), and other pronouncements having similar generally recognized authority, are considered to be interpretations of generally accepted auditing standards, and departures therefrom shall be justified by those licensees or firms who do not follow them.

1.For purposes of this section, "other pronouncements having similar generally recognized authority" encompass both domestic and international pronouncements.

13:29-3.10 Advertising

(a) A licensee shall not use or participate in the use of any form of public communication having reference to the licensee's professional services, which contains a false, fraudulent, misleading, deceptive, or unfair statement or claim. Solicitation by the use of coercion, or over-reaching or harassing conduct is prohibited. A false, fraudulent, misleading, deceptive, or unfair statement or claim includes a statement or claim [which] that:

1. Contains a misrepresentation of fact; [or]

2. Is likely to mislead or deceive because it fails to make full disclosure of relevant facts; [or

3. Contains any testimonial or laudatory statement, or other statement or implication that the licensee's professional services are of exceptional quality; or]

[4.] 3. Is intended or likely to create false or unjustified expectations of favorable results; [or]

[5.] 4. Implies educational or professional attainments or licensing recognition not supported in fact; [or]

[6.] 5. States or implies that the licensee has received formal recognition as a specialist in any aspect of the practice of public accountancy, if this is not the case; [or]

[7.] 6. Represents that professional services can or will be competently performed for a stated fee when this is not the case, or makes representations with respect to fees for professional services that do not disclose all variables affecting the fees that will in fact be charged; [or]

7.Implies the ability to influence any court, tribunal, regulatory agency, or similar body or official; or

8. (No change.)

13:29-3.16 Records

(a) A licensee or the licensee's firm shall furnish to the licensee's client or former client, upon request made within a reasonable time after original issuance of the document in question:

1.-3. (No change.)
[4. A copy of the licensee's or his or her firm's working papers, to the extent that such working papers include records which would ordinarily constitute part of the client's books and records, and are not otherwise available to the client.]

4.Licensee-prepared client records that would ordinarily constitute part of the client's books and records, are contained in the licensee's or his or her firm's working papers, and are not otherwise available to the client. Copies of such records shall be produced to the client in the same manner, media, and format as the record was created by the licensee.

(b) (No change.)

SUBCHAPTER 5.   PEER REVIEW PROGRAM

13:29-5.3   Standards for peer reviews and sponsoring organizations

(a) (No change.)

(b) A complete list of qualified sponsoring organizations that are approved by the Board pursuant to N.J.A.C. 13:29-5.8 shall be posted on the Board's website at [http://www.njconsumeraffairs.gov/accountancy/acct_licensee.htm] http://www.njconsumeraffairs.gov/acc/Pages/default.aspx.

13:29-5.4   Enrollment and participation; exemptions

(a) (No change.)

(b) A firm that does not perform services as set [out] forth in (a) above shall, no later than June 30 of [each] the first year the exemption is sought and for each subsequent triennial renewal period, submit a request for an exemption from the Program in writing to the Board with an explanation of the services offered by the firm. A firm with an exemption that begins providing services set [out] forth in (a) above shall notify the Board of the change in status within 30 days and provide the Board with enrollment information within 12 months of the date the services were first provided. The firm shall have a review within 18 months of the date the services were first provided.

(c)-(h) (No change.)

SUBCHAPTER 6.   CONTINUING PROFESSIONAL EDUCATION
13:29-6.2   [Credit-hour] Credit requirements

(a) Each applicant for a triennial license renewal is required to complete, during the preceding triennial period, 120 [hours] credits of continuing professional education, except as provided in (c) through (f) below. All applicants shall complete a minimum of 20 [hours] credits of continuing professional education in each year of the triennial period. The types of continuing professional education programs and other sources of continuing professional education for which credits [hours] may be obtained are set forth in N.J.A.C. 13:29-6.5. The 120 [hours] credits of continuing professional education shall include at least 24 credits [hours] in the areas of accounting or auditing, which may include review and compilation, for licensees who are engaged in the practice of public accountancy. All applicants shall complete at least [72] 60 credits [hours] of the required 120 credits [hours] in the technical subjects set forth in N.J.A.C. 13:29-6.3. All applicants shall complete four credits [hours] of the required 120 credits [hours] in the New Jersey law and ethics course set forth in N.J.A.C. 13:29-6.3A. The remaining [44] 56 credits [hours] of the required 120 credits [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.

(b)-(c) (No change.)

(d) A licensee shall not be required to satisfy the requirements of (a) above for the initial renewal of his or her license, but shall be required to satisfy the requirements of (a) above as a condition for triennial license renewal for all subsequent triennial renewal periods. [Notwithstanding such exemption from the continuing professional education requirements for the initial renewal of his or her license, a licensee shall complete an orientation course, which at a minimum, shall include a four-credit course in New Jersey law and ethics approved by the Board pursuant to N.J.A.C. 13:29-6.3A and 6.6(c). Within 30 days of completing the New Jersey law and ethics course, a new licensee shall send a copy of the course completion certificate to the Board.]

(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]1.7(c).

[(f) A licensee who is inactive pursuant to N.J.A.C. 13:29-1A.10(i) or 2.3(h), 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.]

[page=27] 13:29-6.3         Qualifying technical subjects
(a) The following subjects are acceptable for satisfaction of the required [72] 60 credits [hours] of continuing professional education in technical subjects over the triennial period:

1.-3. (No change.)

[4. Computer Science;]

4.Information Technology;

5.-11. (No change.)

(b)-(d) (No change.)

13:29-6.5   Continuing professional education programs and other sources of continuing professional education credit

(a) The following qualify as continuing professional education programs provided they contain the subjects enumerated in N.J.A.C. 13:29-6.3 and 6.4 and meet the continuing professional education program criteria requirements as set forth in N.J.A.C. 13:29-6.6 or 6.6A.

1. (No change.)

2. Accredited university or college courses in qualifying technical subjects set forth in N.J.A.C. 13:29-6.3 only[:].

i. Continuing professional education credit shall be granted for university or college courses in accordance with the following:

[i.] (1) Applicants shall receive: 15 credits [hours] of continuing professional education credit for each semester or trimester credit [hour] earned; 10 credits [hours] of continuing professional education credit for each credit [hour] earned in a quarter; and
[ii.] (2) Applicants attending noncredit courses shall be granted continuing professional education credit at the rate of one credit [hour] for every 50 minutes of in-class participation.

ii.Continuing professional education shall not be granted for attending college or university courses that were used to satisfy the individual's initial professional licensure requirements or CPA examination preparation/review courses.

3. In-firm educational programs of public accounting firms: Continuing professional education credit shall be granted at the rate of one credit [hour] for every 50 minutes of in-firm participation.

4. Correspondence programs, [and] other individual study programs, and blended learning programs: Continuing professional education credit shall be granted for correspondence programs, [and] other individual study programs, and blended learning programs offered by sponsors who have been registered with the National Association of State Boards of Accountancy (NASBA). Credit shall be granted in accordance with Standard No. [14] 16 of the American Institute of Certified Public Accountants/National Association of State Boards of Accountancy's (AICPA/NASBA's) Statement on Standards for Continuing Professional Education (CPE) Programs, effective [January 1, 2012] September 1, 2016, incorporated herein by reference, as amended and supplemented[, which is incorporated herein by reference]. The Statement on Standards for Continuing Professional Education (CPE) Programs is located on NASBA's National Registry of CPE Sponsors website, [www.NASBA.org] http://www.nasbaregistry.org/. Credit for correspondence, [and] other individual study programs, and blended learning programs shall only be given in the renewal period in which the course is completed with a successful final examination.

5. Group [Internet based] Internet-based programs: Continuing professional education credit for group [Internet based] Internet-based programs shall be awarded as follows:

i. Group [Internet based] Internet-based programs must employ learning methodologies that clearly define learning objectives, guide the participant through the learning process, and provide evidence of a participant's satisfactory completion of the program.

ii. Group [Internet based] Internet-based programs must have a live instructor while the program is being presented. Program participants must be able to interact with the live instructor while the course is in progress and have the opportunity to ask questions and receive answers during the presentation.

iii. Once a group [Internet based] Internet-based program is recorded or archived for future presentation, it will continue to be considered a group [Internet based] Internet-based program only where a live subject matter expert facilitates the recorded presentation, and credit is given by the original sponsor of the program. Any future presentations that do not include a live subject matter expert will be considered a correspondence or individual study program which must meet all of the correspondence or individual study program requirements set forth in [N.J.A.C. 13:29-6.5](a)4 above.

iv. Credit for a group [Internet based] Internet-based program will be granted at the rate of one credit [hour] for every 50 minutes of the licensee's participation.

6.Nano learning programs: Continuing professional education credit shall be granted for nano learning programs that meet the requirements of Standard No. 10 of the American Institute of Certified Public Accountants/National Association of State Boards of Accountancy's (AICPA/NASBA's) Statement on Standards for Continuing Professional Education (CPE) Programs, effective August 1, 2016, which is incorporated herein by reference, as amended and supplemented. Credit for nano learning programs shall be granted as one-fifth credit (0.2 credit) in accordance with Standard No. 16 of the AICPA/NASBA's Statement on Standards for Continuing Professional Education (CPE) Programs, effective August 1, 2016, which is incorporated herein by reference, as amended and supplemented.The Statement on Standards for Continuing Professional Education (CPE) Programs is located on NASBA's National Registry of CPE Sponsors website,http://www.nasbaregistry.org/.

7. Continuing professional education programs from continuing professional education sponsors approved by the Board in accordance with N.J.A.C. 13:29-6.6. Continuing professional education credit shall be granted at the rate of one credit hour for every 50 minutes of in-class participation.

(b) In addition to the continuing professional education programs enumerated in (a) above, continuing professional education credit also shall be awarded for the following if they fall within the subjects enumerated in N.J.A.C. 13:29-6.3 and 6.4 and meet the continuing professional education program criteria as set forth in N.J.A.C. 13:29-6.6 or 6.6A.

1. Technical meetings: Licensees who participate in meetings of professional accounting organizations shall be awarded continuing professional education credit for that portion of the meeting [which] that is structured as a continuing professional education program. Continuing professional education credit shall be granted at the rate of one credit [hour] for every 50 minutes of the licensee's participation.

2. Professional accounting meetings, conferences, seminars: Licensees who participate in meetings of professional accounting organizations shall be awarded continuing professional education credit if the meeting is structured as an approved continuing professional education program. Continuing professional education credit shall be granted at the rate of one credit [hour] for every 50 minutes of the licensee's participation in the meeting.

3. Firm meetings: Licensees who participate in firm meetings for staff or for management groups of professional accounting organizations shall be awarded continuing professional education credit if the meeting is structured as an approved continuing professional education program. Continuing professional education credit shall be granted at the rate of one credit [hour] for every 50 minutes of the licensee's participation in the meeting.

(c) In addition to the continuing professional education programs enumerated in (a) and (b) above, continuing professional education credit also shall be granted for the following if they involve subjects enumerated in N.J.A.C. 13:29-6.3 and 6.4.
1. Service as a lecturer, instructor, discussion leader, or speaker[:].

i. Continuing professional education credit shall be awarded for service as a lecturer, instructor, discussion leader, or speaker in accordance with the following:

[i.] (1) One credit [hour] shall be given for each 50-minute period of service provided the discussion is one [which] that meets the continuing professional education subject requirements of N.J.A.C. 13:29-6.3 or 6.4. For the lecturer's, instructor's, discussion leader's, or speaker's preparation time, there shall be awarded two additional [hours] credits of continuing professional education [credit] for each [credit hour] 50-minute period of instruction. Requests for credit shall be accompanied by an outline of the instruction, discussion, or presentation;

[page=28] [ii.] (2) The instructor or discussion leader shall not be given credit for subsequent sessions in the same year involving substantially identical subject matter, except that after one year has elapsed the Board may give one additional credit [hour] for each 50-minute period of service as an instructor, lecturer, discussion leader, or speaker for the initial presentation, provided the original material has been updated;

[iii.] (3) The maximum credit given for service as an instructor, lecturer, discussion leader, or speaker shall not exceed 60 credits [hours] for the triennial period; [and]

[iv.] (4) (No change in text.)
ii. Continuing professional education credit shall not be awarded for instructing college or university courses that satisfy initial professional licensure requirements or CPA examination preparation/review courses.

2. Publications: Continuing professional education credit for publications shall be awarded in accordance with the following:

i. (No change.)

ii. Credit shall be given for each [50 minute] 50-minute period of preparation time on a self-declaration basis, not to exceed 30 credits [hours] for the triennial period. A copy of the publication article shall be submitted to the Board with a request for continuing professional education credit;

iii. In exceptional circumstances, a licensee may request additional credit by submitting the article or book to the Board with an explanation of the circumstances [which] that he or she believes justify an award of greater credit. When licensees request more than 30 credits [hours] during the triennial period, credits [hours] awarded shall be determined by the Board on a case-by-case basis. Factors, such as complexity of subject matter, length of publication, and the amount of preparation time shall be considered;

iv. The maximum credit for publication in exceptional circumstances shall not exceed 60 credits [hours] for the triennial period; and

v. Credit shall be given for each [50 minute] 50-minute period of technical review [or peer review program committee] participation, not to exceed 60 credits [hours] for the triennial period.

13:29-6.6   Criteria for continuing professional education sponsors

(a) In order to qualify as a continuing professional education sponsor in the subject matters set forth in N.J.A.C. 13:29-6.3 and 6.4, the sponsor shall submit an application form prescribed by the Board and obtain a sponsor number, except as provided in N.J.A.C. 13:29-6.6A. Qualified sponsors shall offer courses [which] that meet the following requirements:

1. (No change.)

[2. Be at least one credit hour, 50-minute period, in length;]

Recodify existing 3.-4. as 2.-3. (No change in text.)

(b) (No change.)

(c) A continuing professional education sponsor who wishes to offer a course on New Jersey law and ethics, as set forth in N.J.A.C. 13:29-6.3A, shall apply to the Board in writing for prior approval of the course in each triennial renewal period in which the course will be offered. As part of the application, the program sponsor shall submit the continuing professional education sponsor fee set forth at N.J.A.C. 13:29-1.5, and the following:

1. (No change.)

2. Information documenting that the course shall be:

i. (No change.)

ii. A total of four credits [hours in length]; and

iii. (No change.)

3. (No change.)

(d) (No change.)

13:29-6.7   [Credit-hour] Continuing professional education credit calculations

(a) [The minimum measurement for continuing professional education credit shall be a whole credit hour.] Except for those sources of continuing professional education for which another system of credit [hour] calculation is set forth in this subchapter, a continuing professional education credit [hour] shall be equivalent to 50 minutes. [One-half credit hour of continuing professional education may be earned for 25 minutes of instruction or participation after the first credit hour has been earned. For example, a course or program lasting 75 minutes shall be equal to one and one-half continuing professional education credits.] The Board will accept partial credits of continuing professional education.

(b) (No change.)

13:29-6.8   Retention of continuing professional education records

(a) A licensee shall be primarily responsible for documenting satisfaction of continuing professional education requirements. Evidence to support fulfillment of continuing professional education requirements shall be maintained for a period of five years after the completion of educational courses. Such evidence shall be subject to periodic audit by the Board. Satisfactory documentation of the necessary information, including the retention of attendance records and written outlines, shall be accomplished as follows:

1. (No change.)

2. For courses offered by national or state professional organizations, Federal and state government agencies, and sponsors registered with the National Association of State Boards of Accountancy (NASBA), and for correspondence and individual self study courses, written evidence of completion shall be submitted by the licensee. Acceptable evidence of the completion of such courses shall be a certificate of completion or other comparable documentation acquired by the licensee from the program sponsor. The certificate or other documentation shall include the following information:

i. (No change.)

ii. Credits [hours] earned;

iii.-vi. (No change.)

13:29-6.11 Responsibilities of program sponsors

(a) In addition to the requirements of N.J.A.C. 13:29-6.6, continuing professional education program sponsors shall comply with the following requirements:

1.-4. (No change.)

5. Issuance of certificates: The program sponsor shall be responsible for issuing certificates of satisfactory completion or other comparable documentation to program participants. Such certificates or documentation shall be printed with the following information:

i. (No change.)

ii. Credits [hours] earned;

iii.-vi. (No change.)