The proposed amendment to subdivision (a) of section 70.9 of the Regulations of the Commissioner of Education implements Chapter 413 by deleting the three-year exemption from the mandatory continuing education requirement provisions for newly licensed certified public accountants.

Since the Board of Regents meets at fixed intervals, the earliest the proposed rule can be presented for permanent adoption, after expiration of the required 60-day comment period provided for in the State Administrative Procedure Act (SAPA) sections 201(1) and (5), would be the April 2020 Regents meeting. Furthermore, pursuant to SAPA 203(1), the earliest effective date of the proposed rule, if adopted at April meeting would be April 22, 2020, the date the Notice of Adoption would be published in the State Register.

Therefore, emergency action is necessary at the December 2019 meeting for the preservation of the general welfare in order to immediately conform the Regulations of the Commissioner of Education to the requirements of Chapter 413, which becomes effective January 1, 2020.

It is anticipated that the proposed rule will be presented for adoption as a permanent rule at the April 2020 Regents meeting, which is the first scheduled meeting after the 60-day public comment period prescribed in SAPA for State agency rule makings. However, since the emergency regulation will expire before the April Regents meeting, it is anticipated that an additional emergency action will be presented for adoption at the March 2020 Regents meeting.

___________

¹ It should be noted that New York State no longer issues licenses for public accountants. In fact, no new public accountant licenses have been issued in this State in nearly sixty years. Thus, while Chapter 413’s elimination of the three-year exemption from the mandatory continuing education requirement applies to both newly licensed certified public accountants and public accountants, there will be no newly licensed public accountants to apply it to.

Section 70.9. Continuing education

(a) Applicability of requirement.

(1) All licensees engaged in the practice of public accountancy in this State, as defined in Education Law section 7401, either full time or part time, and required under article 130 of the Education Law to register triennially with the Department, shall complete the continuing education requirements in accordance with this section, except those licensees exempt from the requirement pursuant to paragraph (2) of this subdivision.

(2) Exemptions and adjustments in the requirement.

(i) [New licensees shall be exempt from mandatory continuing education requirements for the triennial registration period in which they are first licensed by the Department.] A new licensee shall become subject to the mandatory continuing education requirements on the first January 1 that falls in his or her [second] first registration period.

1. STATUTORY AUTHORITY:

Section 207 of the Education Law grants general rule making authority to the Board of Regents to carry into effect the laws and policies of the State relating to education.

Section 6504 of the Education Law authorizes the Board of Regents to supervise the admission to and regulation of the practice of the professions.

Paragraph (a) of subdivision (2) of section 6507 of the Education Law authorizes the Commissioner of Education to promulgate regulations in administering the admission to and the practice of the professions.

Section 6509 of the Education Law authorizes the Board of Regents to promulgate rules regarding professional misconduct in certain professions.

Section 7401 of the Education Law defines the profession of public accountancy.

Section 7409 of the Education Law, as amended by Chapter 413 of the Laws of 2018, effective January 1, 2020, amends the Education Law to eliminate the three-year exemption from the mandatory continuing education requirement for newly licensed certified public accountants and public accountants.¹

2. LEGISLATIVE OBJECTIVES:

The proposed amendment to subdivision (a) of section 70.9 of the Regulations of the Commissioner of Education is consistent with the above statutory authority and is necessary to implement Chapter 413 by deleting the three-year exemption from the mandatory continuing education requirement provisions for newly licensed certified public accountants.

3. NEEDS AND BENEFITS:

The proposed amendment implements Chapter 413 (Chapter 413) of the Laws of 2019, which, effective January 1, 2020, amends the Education Law by eliminating the three-year exemption from the mandatory continuing education requirement for newly licensed certified public accountants and public accountants.

Currently, certified public accountants are exempt from the mandatory continuing education requirement for the triennial registration period during which they are first licensed by the Department. However, as the pace of technology, proliferation of regulations and increasing specialization accelerates; one of the greatest challenges for all certified public accountants is the attainment, maintenance and advancement of professional competence. To meet this challenge and to maintain public confidence, it is critical that all certified public accountants are and remain current with the standards, knowledge, skills, and abilities in all areas in which they provide services. It is not enough that an individual is successful in completing an accountancy education and passing a licensing examination. In today’s complexed and complicated world, all certified public accountants need to demonstrate that they are taking substantive steps to maintain their professional competency. Unprofessional and/or unethical practice of public accountancy causes harm to the public. Thus, by eliminating the three-year exemption from the mandatory continuing education requirement for newly licensed certified public accountants, Chapter 413 will further increase public protection in the profession of public accountancy.

The proposed amendment conforms subdivision (a) of section 70.9 of the Regulations of the Commissioner of Education to the amendment made to section 7409 of the Education Law by Chapter 413.

4. COSTS:

(a) Costs to State government: There are no additional costs to State government.

(b) Costs to local government: There are no additional costs to local government.

(c) Cost to private regulated parties: The proposed amendment does not impose any additional costs on private regulated parties beyond those required by statute. As required by Education Law section 7409(5) and paragraph (1) of subdivision (h) of section 70.9 of the Regulations of the Commissioner of Education, a mandatory continuing education fee of $50 shall be collected from any licensee who is required under Article 130 of the Education Law to register triennially with the Department at the beginning of each triennial registration period.

(d) Cost to the regulatory agency: There are no additional costs to the State Education Department.

5. LOCAL GOVERNMENT MANDATES:

The proposed amendment does not impose any program, service, duty, or responsibility on local governments.

6. PAPERWORK:

There are no new forms, reporting requirements, or other recordkeeping associated with the proposed amendment.

7. DUPLICATION:

The proposed amendment does not duplicate any other existing State or federal requirements.

8. ALTERNATIVES:

The proposed amendment conforms subdivision (a) of section 70.9 of the Regulations of the Commissioner of Education implements Chapter 413 by deleting the three-year exemption from the mandatory continuing education requirement provisions for newly licensed certified public accountants. There are no significant alternatives to the proposed amendment and none were considered.

9. FEDERAL STANDARDS:

No Federal standards apply to the subject matter of this rule making. The Federal government does not regulate the mandatory continuing education requirements for licensed certified public accountants.

10. COMPLIANCE SCHEDULE:

If adopted at the December 2019 Regents meeting, the emergency rule will become effective January 1, 2020. It is anticipated that the proposed rule will be presented to the Board of Regents for permanent adoption at the April 2020 Regents meeting. If adopted at the April 2020 Regents meeting, the proposed amendment will become effective on April 22, 2020. It is anticipated that regulated parties will be able to comply with the proposed amendment by the effective date.

___________

¹ It should be noted that New York State no longer issues licenses for public accountants. In fact, no new public accountant licenses have been issued in this State in nearly sixty years. Thus, while Chapter 413’s elimination of the three-year exemption from the mandatory continuing education requirement applies to both newly licensed certified public accountants and public accountants, there will be no newly licensed public accountants to apply it to.

The purpose of the proposed amendment to subdivision (a) of section 70.9 of the Regulations of the Commissioner of Education is to conform the regulation to the amendment made to section 7409 of the Education Law by Chapter 413 (Chapter 413) of the Laws of 2018. Effective January 1, 2020, Chapter 413 amends the Education Law by eliminating the three-year exemption from the mandatory continuing education requirement for newly licensed certified public accountants and public accountants.¹

Currently, certified public accountants are exempt from the mandatory continuing education requirement for the triennial registration period during which they are first licensed by the Department. However, as the pace of technology, proliferation of regulations and increasing specialization accelerates; one of the greatest challenges for all certified public accountants is the attainment, maintenance and advancement of professional competence. To meet this challenge and to maintain public confidence, it is critical that all certified public accountants are and remain current with the standards, knowledge, skills, and abilities in all areas in which they provide services. It is not enough that an individual is successful in completing an accountancy education and passing a licensing examination. In today’s complexed and complicated world, all certified public accountants need to demonstrate that they are taking substantive steps to maintain their professional competency. Unprofessional and/or unethical practice of public accountancy causes harm to the public. Thus, by eliminating the three-year exemption from the mandatory continuing education requirement for newly licensed certified public accountants, Chapter 413 will further increase public protection in the profession of public accountancy.

The proposed amendment will not impose any reporting, recordkeeping, or other compliance requirements or costs, or have an adverse impact, on small businesses or local governments. Because it is evident from the nature of the proposed amendment that it will not affect small businesses or local governments, no affirmative steps were needed to ascertain that fact and none were taken. Accordingly, a regulatory flexibility analysis for small businesses and local governments is not required, and one has not been prepared.

___________

¹ It should be noted that New York State no longer issues licenses for public accountants. In fact, no new public accountant licenses have been issued in this State in nearly sixty years. Thus, while Chapter 413’s elimination of the three-year exemption from the mandatory continuing education requirement applies to both newly licensed certified public accountants and public accountants, there will be no newly licensed public accountants to apply it to.

The purpose of the proposed amendment to subdivision (a) of section 70.9 of the Regulations of the Commissioner of Education is to conform the regulation to the amendment made to section 7409 of the Education Law by Chapter 413 (Chapter 413) of the Laws of 2018. Effective January 1, 2020, Chapter 413 amends the Education Law by eliminating the three-year exemption from the mandatory continuing education requirement for newly licensed certified public accountants and public accountants.¹

Currently, certified public accountants are exempt from the mandatory continuing education requirement for the triennial registration period during which they are first licensed by the Department. However, as the pace of technology, proliferation of regulations and increasing specialization accelerates; one of the greatest challenges for all certified public accountants is the attainment, maintenance and advancement of professional competence. To meet this challenge and to maintain public confidence, it is critical that all certified public accountants are and remain current with the standards, knowledge, skills, and abilities in all areas in which they provide services. It is not enough that an individual is successful in completing an accountancy education and passing a licensing examination. In today’s complexed and complicated world, all certified public accountants need to demonstrate that they are taking substantive steps to maintain their professional competency. Unprofessional and/or unethical practice of public accountancy causes harm to the public. Thus, by eliminating the three-year exemption from the mandatory continuing education requirement for newly licensed certified public accountants, Chapter 413 will further increase public protection in the profession of public accountancy.

The proposed amendment eliminating the three-year exemption from the mandatory continuing education requirement for newly licensed certified public accountants and public accountants is applicable to all new licensees in this profession, including those in rural areas of this State. Thus, the proposed amendment does not adversely impact entities in rural areas of New York State. Accordingly, no further steps were needed to ascertain the impact of the proposed amendment on entities in rural areas and none were taken. Thus, a rural flexibility analysis is not required and one has not been prepared.

___________

¹ It should be noted that New York State no longer issues licenses for public accountants. In fact, no new public accountant licenses have been issued in this State in nearly sixty years. Thus, while Chapter 413’s elimination of the three-year exemption from the mandatory continuing education requirement applies to both newly licensed certified public accountants and public accountants, there will be no newly licensed public accountants to apply it to.

It is not anticipated that the proposed amendment will impact jobs or employment opportunities. This is because the proposed amendment conforms subdivision (a) of section 70.9 of the Regulations of the Commissioner of Education to the amendment made to section 7409 of the Education Law by Chapter 413 (Chapter 413) of the Laws of 2018. Effective January 1, 2020, Chapter 413 amends the Education Law by eliminating the three-year exemption from the mandatory continuing education requirement for newly licensed certified public accountants and public accountants.¹

Currently, certified public accountants are exempt from the mandatory continuing education requirement for the triennial registration period during which they are first licensed by the Department. However, as the pace of technology, proliferation of regulations and increasing specialization accelerates; one of the greatest challenges for all certified public accountants is the attainment, maintenance and advancement of professional competence. To meet this challenge and to maintain public confidence, it is critical that all certified public accountants are and remain current with the standards, knowledge, skills, and abilities in all areas in which they provide services. It is not enough that an individual is successful in completing an accountancy education and passing a licensing examination. In today’s complexed and complicated world, all certified public accountants need to demonstrate that they are taking substantive steps to maintain their professional competency. Unprofessional and/or unethical practice of public accountancy causes harm to the public. Thus, by eliminating the three-year exemption from the mandatory continuing education requirement for newly licensed certified public accountants, Chapter 413 will further increase public protection in the profession of public accountancy.

The proposed amendment will not have a substantial adverse impact on jobs and employment opportunities. Because it is evident from the nature of the proposed amendment that it will have no impact on jobs or employment opportunities attributable to its adoption or only a positive impact, no affirmative steps were needed to ascertain these facts and none were taken. Accordingly, a job impact statement is not required and one has not been prepared.

___________

¹ It should be noted that New York State no longer issues licenses for public accountants. In fact, no new public accountant licenses have been issued in this State in nearly sixty years. Thus, while Chapter 413’s elimination of the three-year exemption from the mandatory continuing education requirement applies to both newly licensed certified public accountants and public accountants, there will be no newly licensed public accountants to apply it to.