Tackling Legislative Trends. John W. Johnson Director of Legislative & Governmental Affairs, NASBA
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1 Tackling Legislative Trends John W. Johnson Director of Legislative & Governmental Affairs, NASBA
2 Legislative Trends 2018 Annual Meetings Scottsdale, AZ October 31, 2018 John W. Johnson, Director Legislative and Governmental Affairs
3 E-news Picture NASHVILLE, TN (May 9, 2012) The National Association of State Boards of Accountancy (NASBA),an association dedicated to enhancing the effectiveness of the 55 state boards of accountancy, is pleased to announce a new position aimed at serving the legislative and regulatory needs of its member boards. MISSION DRIVEN MEMBER FOCUSED
4 Discussion Anti-Regulation o What s up in 2019 Uniform Accountancy Act o Key Adoptions in 2018 NC Dental Decision o Federal Legislation o H.R o S 3598
5
6 Polling Question: What year was the 1 st Edition of the Joint UAA released: a b c d. 1992
7 Licensing requirements vary substantially by state, creating barriers QR to workers moving across State lines and inefficiencies for businesses Institute for Justice Security
8 E-news Picture U.S. Department of Labor
9 Barbers Bus Driver (City/Transit) Bus Drivers, School or Special Client Construction Managers Construction and Building Inspectors Dental Hygienists Electricians Emergency Medical Technicians and Paramedics Hairdressers, Hairstylists and Cosmetologists Heating, Air Conditioning, and Refrigeration Mechanics and Installers Heavy and Tractor-Trailer Truck Drivers Insurance Sales Agents Licensed Practical and Licensed Vocational Nurses Manicurists and Pedicurists Massage Therapists Nursing Assistants Occupational Therapy Assistants LIST OF TARGET OCCUPATIONS Pharmacy Technicians Physical Therapy Assistants Pipefitters and Steamfitters Plumbers Preschool Teachers, Except Special Education Private Detectives and Investigators Radiologic Technologists Real Estate Appraisers Real Estate Sales Agents Respiratory Therapists Security and Fire Alarm Systems Installers Security Guards Skin care Specialists Teacher Assistants Veterinary Technologists and Technicians Vocational Education Teachers, Postsecondary Water and Wastewater Treatment Plant and System Operators U.S. Department of Labor
10 FTC Recognizes Accountancy Accomplishment In 1998, to eliminate artificial barriers to the interstate practice and mobility of certified public accountants arising from differing state requirements for licensing, the American Institute of Certified Public Accountants ( AICPA ) and the National Association of State Boards of Accountancy ( NASBA ) added provisions to enhance interstate mobility to the Uniform Accountancy Act ( UAA ). These provisions, which are based on the substantial equivalency of state licensing standards for individuals, have been adopted by 55 jurisdictions, including 50 states, the District of Columbia, and four U.S. territories. The high level of adoption reflects technological advances that have allowed accountants to provide services across state lines electronically, as well as sustained support from the AICPA and NASBA. In 2014, building on the popularity of the individual mobility initiative, the two organizations added provisions for firm license mobility to the UAA; these have been adopted by 21 states.
11
12 2018 UAA Wrap-Up Advancing Uniformity
13 Comprehensive Definition of Attest WA AK 18 AK Adopted the Updated Attest Definition HI > CA OR CNMI ID 17 ID NV NV 17 UT 17 UT Active Attest Legislation Filed in 2018 GU > Adjourned Active Attest Legislation filed in Carried Over to the 2018 Session AZ MT WY NM NM 17 CO ND SD NE TX KS OK MN IA MO MO 17 AR AR 17 LA WI MI OH IL IN WV KY TN MS AL GA PA VA NC SC FL NY ME CT NJ DE MD DC VT 17 VT NH NH 18 MA RI PR VI 2014 Pre-Attest Language Partial Adoption of Updated Attest Definition Recently Signed Into Law Signed Into Law in 2018
14 Firm Mobility AK HI CA WA 16 WA OR NV ID AZ UT MT 17 MT WY CO NM 17 NM ND SD NE KS OK TX MN WI MI MI IA IA IL OH IL IN 17 MO MO KY TN AR MS AL GA LA LA 16 PA WV VA NC SC NY ME CT NJ > > > DE MD DC VT NH NH 18 MA > RI PR States Requiring Firm Registration Under Mobility States Not Requiring Firm Registration Under Mobility Firm Mobility Legislation Filed in 2018 CNMI > = Active Legislation as of 10/9/18 Active Firm Mobility Legislation Filed in Carried Over to the 2018 Session > = Active Legislation as of 10/9/18 GU FL FL 17 Recently Signed Into Law Signed Into Law in 2018 VI
15 CPE Reciprocity UAA MODEL RULE 6-5 (c) A non-resident licensee seeking renewal of a certificate in this state shall be determined to have met the CPE requirement (including the requirements of Rule 6-4 (a)) of this rule by meeting the CPE requirements for renewal of a certificate in the state in which the licensee s principal place of business is located. (1) Non-resident applicants for renewal shall demonstrate compliance with the CPE renewal requirements of the state in which the licensee s principal place of business is located by signing a statement to that effect on the renewal application of this state. (2) If a non-resident licensee s principal place of business state has no CPE requirements for renewal of a certificate, the non-resident licensee must comply with all CPE requirements for renewal of a certificate in this state. 15
16 CPE Reciprocity AK HI CA OR WA NV ID UT UT + 17 AZ MT WY CO NM NM 17+ ND ** SD NE KS ** OK TX MN IA MO AR LA WI MI NY 18 PA IL IN OH WV KY VA**** TN NC SC** MS AL GA*** ME* CT CT 18+ +NJ DE MD DC PR VT * NH MA RI**** * ** *** **** The Boards have not promulgated any rules to implement the statutory provision The Board has the authority to determine if the CPE requirements of another state are equivalent to the Board s requirements The Georgia Board is in the process of having to promulgate rules under its new statute Rhode Island and Virginia have full CPE reciprocity for states with an ethics requirement; this excludes AL, GA, ND, SD, UT and WI GU FL VI CNMI States that have Full CPE Reciprocity States that have Partial CPE Reciprocity States that have No CPE Reciprocity CPE and CPE Reciprocity Legislation signed into law 11/20/17 (Effective 12/15/21) C T 1 8 C T Filed Legislation in 2018 Recently Signed into Law 1 Signed into Law in 2018
17 Polling Question: Does your State Board and/or State Society plan on filing UAA related legislation in 2019? a. Yes b. No c. I Don t Know
18 Overview of Supreme Court Ruling 6-3 decision (Alito, Scalia and Thomas dissenting) Majority s Conclusion: Because a controlling number of the Board s decision makers are active market participants in the occupation the Board regulates, the Board is treated as a private actor and must show active supervision by the State.
19 North Carolina Dental Decision North Three Carolina Plus Years Dental Removed Decision Three Years Removed Feb. 2015Supreme Court Supreme Opinion Court Opinion Approximately Thirty Five Fallout Cases Over 20 States with Bills Filed (9 Enacted) Two FTC Administrative Cases Approximately Over 20 States Two FTC Thirty with Bills Filed (9 Administrative Fallout Cases Enacted) Approximately Cases 8 FTC Staff Guidance States on Active Approximately 8 FTC Staff Guidance with Executive Supervision States on Active Action with Executive Supervision Action Oct Feb Unpredictable Path Continues
20 North Carolina Dental Case
21 H. R O c c u p a t i o n a l L i c e n s i n g B o a r d A n t i r u s t D a m a g e s R e l i e f a n d R e f o r m A c t o f C o n g r e s s m a n M i k e C o n a w a y, C P A F o r m e r m e m b e r o f t h e Te x a s S t a t e B o a r d o f P u b l i c A c c o u n t a n c y F o r m e r N A S B A C h a i r
22 What the legislature give in one year can be taken away or altered the next year Licensing requirements vary substantially by state, creating barriers QR to workers moving across State lines and inefficiencies for businesses Institute for Justice Security
23 Licensing requirements vary substantially by state, creating barriers QR to workers moving across State lines and inefficiencies for businesses Institute for Justice Security
24 Licensing requirements vary substantially by state, creating barriers QR to workers moving across State lines and inefficiencies for businesses Institute for Justice Security
25 Accountancy Stakeholders Working Group Better position the licensing of CPAs in the eyes of policy-makers and key influencers through the development of a robust communications platform that details the rich history of the accounting profession, articulates the importance of remaining a state-regulated profession, explains the tremendous strides made to reduce barriers as the profession has evolved, and advocates for the profession's continued strength and integrity by preserving the licensing requirements set forth in the Uniform Accountancy Act. Place Leaders within the Profession articulate our position Study their Issue Portfolios Analysis and articulate the harm of their policies to the Public Tell the Accountancy Story Robust Communications Apparatus Create Engaging Materials Talking Points, Op-eds, etc. Robust Communications Apparatus
26 Accountancy Stakeholders Working Group NASBA & AICPA James Corley Arkansas State Board of Accountancy Ronald Gitz Society of Louisiana CPAs Nicola Neilon Nevada State Board of Accountancy TAC Legislators Anti-Regulatory Groups State CPA Societies Tammy Velasquez (E&Y) The Accountants Coalition Emily Walker Virginia Society of CPAs BOAs
27 Accountancy Stakeholders Working Group Better position the licensing of CPAs in the eyes of policymakers and key influencers through the development of a robust communications platform that details the rich history of the accounting profession, articulates the importance of remaining a state-regulated profession, explains the tremendous strides made to reduce barriers as the profession has evolved, and advocates for the profession's continued strength and integrity by preserving the licensing requirements set forth in the Uniform Accountancy Act. TAC NASBA & AICPA Legislators Key Influencers BOAs State CPA Societies
28 Discussion and Questions M I S S I O N D R I V E N M E M B E R F O C U S E D
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