Legislative Activity of the NYSSCPA

OVERVIEW

Legislative and regulatory representation may be the most important benefit of joining the Society and its 33,000 members.The NYSSCPAs membership is a strong collective voice with extensive influence on issues affecting the accounting profession.

Under coordination of the Executive Director, key Society staff, and outside legislative counsel, members interests are represented by:
*Continuously reviewing federal, state, and local legislative and regulatory proposals.
*Monitoring other organizations such as the National Association of Insurance Commissioners, the National Organization of State Boards of Accountancy, and various special interest consumer groups and trade associations.
*Becoming involved and actively testifying before the U.S. Congress, the New York State Legislature, and other regulatory bodies such as the Securities and Exchange Commission (SEC), and the U.S. Treasury Department.

Participation by members is the central element for legislative success. While the Society staff is highly respected in Albany and Washington D.C., the individual members contact with local elected officials also contributes to the Society's political strength. 

PROFESSIONAL LIABILITY INSURANCE ACTIVITIES

One of the Society's top priorities is the reduction of professional liability for CPAs and the availability of reasonably priced liability insurance for Society members. The Society's liability efforts combine continuous legislative, regulatory, judicial, and insurance market activities. Both volunteer Society members on the Professional Liability Task Force and key professional staff are active in this area. The Society also retains special legal counsel on professional liability matters. The Society works to:
*Contain the Cost of Liability Insurance
--The Society is engaged in continuous efforts with insurers, the New York State Insurance Department, actuaries, and consultants to foster a competitive and stable New York market for professional liability insurance.
*Reduce Liability Exposure
--Society representatives regularly meet with legislators, regulators, and others to contain and reduce CPAs exposure to civil liability. The Society also files amicus curiae briefs in appropriate cases involving CPAs liability.

IDENTIFICATION OF ISSUES

NYSSCPA members play an important role in supplementing the efforts of the Society staff and outside counsel in identifying issues requiring Society action. Each issue--such as a tax bill or an attempt by a government agency to further regulate CPAs--involves different legislators and agencies that must be individually addressed. The Society and outside counsels specialized knowledge of the legislative and regulatory processes, their identification of key players on a given issue, and their sense of proper timing allows them to negotiate the legislative/regulatory maze and coordinate the activities that require direct member involvement.

KEY PERSON PROGRAM

The Society's Key Person Program is the front line of legislative and regulatory involvement by members. The program is made up of members who provide the NYSSCPAs Executive Directors office with the names of legislators, government officials, and key staff aides they know on a personal basis. The Society then relies on members to contact these officials when the need arises. The names of the members and their government contacts are kept strictly confidential and the Society never uses a members name without his or her permission. Members who want to participate in the Key Person Program should contact the Manager, Professional Relations, at (212) 719-8305 or by e-mail: fchan@nysscpa.org.

GOVERNMENT RELATIONS DIRECTORS

Government Relations Directors are volunteer members who assist the Society in its legislative and regulatory activities at the grassroots level. They serve as spokespersons for the profession on legislative and regulatory issues, and their activities are supported and administered through the Society office.

Currently, the Society has several volunteer members from each of the 11 Society chapters throughout the state and New York City boroughs who are trained by the Society's Executive Director and other staff members at semiannual workshops. Members interested in participating should contact the Society's Manager, Professional Relations, at (212) 719-8305 or by e-mail: fchan@nysscpa.org.

PEER REVIEW

The Society provides a variety of review services to members who wish to have their firms practices and procedures reviewed by experienced CPAs.
*Volunteer Program
--Society members who are not members of the AICPA can have the Society arrange for a voluntary review of the quality control system of their practices. An administrative fee is charged for this service, in addition to the cost of the review. The review is conducted in accordance with the AICPAs Peer Review program standards.
*AICPA Program
--The Society serves as administrator for firms located in New York State of the AICPAs mandatory Peer Review program. The Society operates the program through a separate division, the AICPA Peer Review Administrators, which administers the Peer Review program under the AICPAs standards and oversight. The Society's Peer Review Committee acts as a report acceptance body under the program. An administrative fee is charged to defray the programs costs. This fee is in addition to the cost of the review, which is paid to the reviewer.

PROFESSIONAL ETHICS

The Society's primary role in this area is to be an education resource for members and to help members avoid involvement in activities that may violate the ethics rules of both the Society and the state licensing authorities. The Society's Professional Ethics Committee also investigates and adjudicates complaints it receives on charges of ethics code violations.

The Society's Code of Professional Ethics is provided to every member. Telephone inquiries are responded to daily by the Society's ethics staff. Articles and questions and answers on Ethics and Regulation are published in each edition of the Tax and Regulatory Bulletin.

STATE ACCOUNTANCY REGULATION

New York State CPAs are regulated by the New York State Board of Regents, whose rules are administered by the State Education Department. The Society interfaces with the Department in all matters concerning licensing and regulation of the profession.

The New York State Board for Public Accountancy consists of CPAs, public accountants, and lay members authorized by the Regents to carry out specific functions, including accrediting college and university programs, conducting disciplinary proceedings for alleged violations of the Regents ethical rules, and ensuring that only qualified individuals may practice the profession of accountancy. The Board also recommends changes in the Regents regulations pertaining to the accounting profession.

Society staff members attend all Board meetings, effecting and monitoring changes in the States accountancy regulations. The Society frequently meets directly with committees and individual members of the Regents on activities concerning the profession.

RESPONDING TO STANDARD-SETTING BODIES

The Society takes an active and visible role in the accounting and auditing standard-setting process. Through its technical committees, the Society prepares and issues formal responses to exposure drafts and other proposals of the Auditing Standards Board, various AICPA technical committees, and other professional standard-setting bodies such as the Financial Accounting Standards Board and the Securities and Exchange Commission.