Rules Comment Deadline Extended

State Board Report

March 2017

The NASBA Uniform Accountancy Act Committee has extended its deadline for comments on the Model Rules for Continuing Professional Education until June 30, 2017. The format for the Model Rules has been significantly changed from the previous version and new forms of education are covered by these proposed rules. To assist Boards in their review and discussion of the proposed CPE Model Rules, a video related to the new instructional delivery methods of nano learning and blended learning has been placed on NASBA’s website. Among the other changes included in the proposed Rules is the requirement for licensees to complete 50 percent of their CPE requirements in technical fields of study. Another rule calls for completion of an average of no fewer than 40 credits of qualified CPE, including an average of two credits of ethics, for each annual period included in the CPE reporting period. The new rules would allow participation in professional committees that meet prescribed qualifications to be awarded CPE credit. The proposed CPE Model Rules are directed to licensees, as distinct from the Statement on Standards for CPE Programs, which are aimed at guiding program developers and sponsors.

Comments are also being requested on edits to the Uniform Accountancy Act, in preparation for its Eighth Edition, which is expected to be released in the fourth quarter of 2017. Some of these changes are meant to standardize capitalization or get rid of reference to “stenographers,” while others are intended to update to current practice. For example: a definition of “preparation of financial statements” is being added and reference to the period of adoption prior to the 150-hour requirement is being deleted. The NASBA Model Code of Conduct is being deleted from the Model Rules, since State Boards are being encouraged to adopt or reference the AICPA Code of Professional Conduct as State Board participation in the AICPA’s Professional Ethics Executive Committee, which oversees the Code of Conduct, has been increased. “Appendix A – Legislative Policy (Annotated)” is being deleted from the document, as this is not a joint policy. Comments on these clean ups are requested by June 1, but will be accepted through June 30, 2017.

“The Uniform Accountancy Act is intended to be an evergreen document,” NASBA UAA Committee Chair Coalter Baker (TX) explained. “Our Committee strives to introduce statutes and rules that result in effective and responsive regulation. We must be ready for changes to the profession and to the global marketplace. The primary goal is always to support State Boards of Accountancy and their mission to protect the public.”

The exposure drafts for both the new Model Rules for continuing professional education and the clean-up of the seventh edition of the UAA can be found on www.nasba.org. Please send all comments to [email protected] no later than June 30, 2017.