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THE STATE
EDUCATION DEPARTMENT / THE UNIVERSITY
OF THE STATE OF |
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TO: |
Higher Education and Professional Practice Committee |
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FROM: |
Johanna Duncan-Poitier |
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SUBJECT: |
Proposed
Amendments to the Regulations of the Commissioner of Education Relating to
Education Requirements for Licensure in Public Accountancy and the
Endorsement of an Out-Of-State License in this Field |
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DATE: |
June 12, 2006 |
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STRATEGIC
GOAL: |
Goal 3 |
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AUTHORIZATION(S): |
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SUMMARY
Issue for
Discussion
Should the Board of Regents amend sections 52.13, 70.1, and 70.4(b) of the Regulations of the Commissioner of Education relating to educational requirements for licensure in public accountancy and the endorsement of an out-of-state license in this field?
Reason(s) for Consideration
Review of Policy.
Proposed
Handling
The proposed amendment is before the Higher Education and Professional Practice Committee for discussion in June 2006 and will be submitted for action at the September 2006 Regents meeting.
Procedural
History
A Notice of Proposed Rule Making concerning the proposed amendment will be published in the State Register on July 5, 2006. Supporting materials for the proposed amendment are available from the Secretary to the Board of Regents.
Background
Information
The purpose of the proposed amendment is to revise requirements for
college programs leading to licensure in public accountancy, make changes in the
education requirements that applicants for licensure as a certified public
accountant must meet, and revise requirements for licensure in this field
through the endorsement of an out-of-state license. These changes are designed to remove
barriers to licensure in
Among other changes, the
amendment deletes a 60 semester hour liberal arts and sciences requirement for
registered college programs leading to licensure in public accountancy. Instead, it permits such registered
programs to provide liberal arts and sciences coursework in accordance with the
requirements in Regents Rules for the type of degree conferred. In addition,
deleting this specific requirement will remove a barrier to licensure for
certified public accountants who are licensed in other states and have completed
out-of-state programs. To be
licensed they have to complete an equivalent educational program to a
Recommendation
N/A
Timetable for
Implementation
The effective date of the proposed
amendment is October 5, 2006.
Attachment
AMENDMENT TO THE REGULATIONS OF THE
COMMISSIONER OF EDUCATION
Pursuant to sections 207, 210, 6506, 6507, and 7404 of the Education
Law.
1. Section 52.13 of the
Regulations of the Commissioner of Education is amended, effective October 5,
2006, as follows:
52.13 Accountancy.
(a) Prior to August 1, 2004, the program shall meet the curricular
requirements in this subdivision or subdivision (b) of this
section.
(1) Undergraduate curriculum.
An undergraduate curriculum shall [include not less than] lead to a
baccalaureate degree and include not less than 120 semester hours or their
equivalent, including the following semester hours or their equivalent in
the specified subjects:
Subject
Semester hours
Accounting, including course coverage in
each of the
24
following subject areas - accounting
principles, cost
accounting, tax accounting and auditing
Commercial law
6
Finance
6
Basic statistics
3
[Liberal arts and science courses]
[60]
Business and accounting electives
21
[Total, including at least six semester
hours of
[120]
economic principles which hours may be used
to
satisfy either the business electives or
liberal arts
requirements]
Economic principles (which may be used to
satisfy
6
the business and accounting electives
requirement
The department may recognize a curriculum of
comparable course content but with fewer semester hours, if given wholly or
partly at the graduate level, as being equivalent to the undergraduate
curriculum outlined above.
(2) Graduate curriculum. A
graduate curriculum shall include not less than the following semester hours or
their equivalent in the specified subjects depending on the undergraduate
preparation of the students:
Subject
Semester hours
(prerequisites for the respective
programs are described below)
Alternative A
Alternative B
Accounting, including at least one course
each in
9
24
accounting theory, tax accounting, and
auditing,
and in addition, under the B program, at
least
one course in cost accounting
Economic analysis
3
3
Finance
3
3
Commercial law - six semester hours at the
4
undergraduate level will be considered
equivalent
Other business accounting electives [,
including at
15
26
least one course in quantitative
measurements]
Total
30
60
(i) . . .
(ii) The prerequisite for alternative B is a bachelor's degree or the
equivalent in a field other than accounting or business administration,
including:
(a) [at least 60 semester hours in liberal arts and science courses, of
which] at least six semester hours [shall be] in economic
principles;
(b) . . .
(c) . . .
If such curriculum did not include the
requirements set forth in this paragraph relating to economic principles,
finance and business statistics, equivalent study in these subjects shall be
carried out through the use of electives in the graduate
curriculum.
(b) (1) Definitions. As used
in this subdivision:
(i) Professional accountancy content area shall mean [coursework, which
includes but is not limited to, each of the following curricular areas]
curricular content that includes but is not limited to each of the following
subjects:
(a) . . .
(b) . . .
(c) . . .
(d) . . .
(ii) General business content area shall mean [coursework, which includes
but is not limited to, each of the following curricular areas] curricular
content that includes but is not limited to each of the following
subjects:
(a) . . .
(b) . . .
(c) . . .
(d) economics; and
(e) finance [; and] .
[(f) quantitative
methods.]
[(iii) . . .]
(2) Curriculum. On or after
August 1, 2004, in addition to meeting all applicable provisions of this Part,
to be registered as a program recognized as leading to licensure in public
accountancy which meets the requirements in section 70.1 of this Title, such
program shall be a baccalaureate or higher program that, by requisites or
prerequisites, shall ensure completion of at least 150 semester hours or its
equivalent, including a minimum of 33 semester hours or its equivalent in the
professional accounting content area[,] and a minimum of 36 semester
hours or its equivalent in the general business content area [, and a minimum
of 60 semester hours or its
equivalent in the liberal arts and sciences content area, with a maximum of 90
semester hours in a combination of professional accounting and general business
content areas and a maximum of 80 semester hours in the liberal arts and
sciences content area].
Such curriculum shall include the study of business and accounting
communications, ethics and professional responsibility, and accounting research,
either by integration into the coursework of other courses or in separate
courses.
2. Section 70.1 of the
Regulations of the Commissioner of Education is repealed and a new section 70.1
is added, effective October 5, 2006, as follows:
70.1 Professional study of public accountancy.
(a) For purposes of this section, acceptable accrediting agency shall
mean an organization accepted by the department as a reliable authority for the
purpose of accreditation of accountancy programs, having accreditation standards that are
substantially equivalent to the requirements for programs registered pursuant to
section 52.13 of this Title, and applying its criteria for granting
accreditation in a fair, consistent, and nondiscriminatory manner.
(b) (1) To meet the professional educational requirements for
licensure, the applicant shall present satisfactory evidence of completing a
baccalaureate or higher degree program in accountancy that is registered by the
department pursuant to section 52.13 of this Title, or a baccalaureate or higher
degree program in accountancy that is accredited by an acceptable accrediting
agency, or a baccalaureate or higher degree program that is substantially
equivalent to such a registered or accredited program, as determined by the
department.
(2) An applicant who applies to the department for licensure on or
after August 1, 2009 shall be required to have satisfactorily completed a
curriculum of at least 150 semester hours in the program prescribed in paragraph
(1) of this subdivision.
(3) An applicant who applies to the department for licensure prior to
August 1, 2009 shall be required to have either:
(i) satisfactorily completed a curriculum of at least 150 semester
hours in the program prescribed in paragraph (1) of this subdivision;
or
(ii) satisfactorily completed a curriculum of at least 120 semester
hours in the program prescribed in paragraph (1) of this subdivision prior to
August 1, 2009 and submitted the required application forms for licensure to the
department prior to August 1, 2009.
(c) In lieu of meeting the education requirements prescribed in
subdivision (b) of this section, the applicant may meet the following
requirement: at least 15 years of full-time experience in the practice of public
accountancy satisfactory to the State Board for Public Accountancy.
3. Subdivision (b) of
section 70.4 of the Regulations of the Commissioner of Education is amended,
effective October 5, 2006, as follows:
(b) If licensing standards in the other jurisdiction at the time of
licensure were not fully equivalent to New York State standards at the time of
application for endorsement, or if an examination acceptable to the State Board
was passed in another jurisdiction but under conditions not applicable in this
State, the department may accept, for purposes of endorsement, evidence
satisfactory to the State Board of at least [five] four years of
professional experience in the practice of public accountancy following initial
licensure and within 10 years immediately preceding application for licensure by
endorsement.