Profession Defeats Two Bills, Challenges Remain

By Annette Davis

As the 1997-98 Albany legislative session closed, the accounting profession, represented by the NYSSCPA and its members' grassroots activities, defeated two proposals that would have had detrimental effects to CPAs and the public.

One bill would have created a new class of "registered accountants" (A.2434-C/S.1555-C). The second would have waived the CPA exam for certain individuals (A.903/S.895). Both bills were held in the Assembly Higher Education Committee at the request of the legislative sponsors, which means there will be no further activity this session. The proposals, however, could be introduced again next session.

A third bill, "And Associates" (A.5774-A/S.4289-A), which would allow sole practitioners with one or more licensed professionals on staff to use "and Associates" in their firm name, passed the Assembly but did not reach a vote in the Senate.

Registered Accountants

The Society's Westchester and Staten Island chapters were active opponents in the fight against the registered accountants bills. Members voiced strong opposition to their elected officials who were sponsors of the bills, and contacted local lawmakers through letters, faxes, phone calls, meetings, and invitations to speak at town meetings. Through these grassroots activities, the profession formed a unified front and succeeded in demonstrating that the public would be confused and harmed by another class of accountants that did not have the strong professional standards of the CPA profession.

"Our members clearly helped turn the tide on the registered accountants issue, and these efforts proved once again how critical it is that everyone develop and maintain relationships with their elected officials," said Executive Director Louis Grumet. "Kudos in particular to Westchester Chapter President-elect Sandra Napoleon-Hudson for the tenacity and spirit she demonstrated on this issue."

CPA Exam Waiver

Members also played an important role in demonstrating that the CPA exam is the defining characteristic of a Certified Public Accountant. The CPA exam-waiver legislation was introduced to protect the livelihood of a small group of individuals who were practicing public accountancy prior to 1959. Anyone entering public accounting after this time period had to satisfy the educational and experience requirements and pass the CPA exam.

The proposal introduced in the last session would waive the exam requirement and permit these pre-1959 public accountants to use the title "CPA." The Society's efforts, supported again by members' activities with local lawmakers, succeed in demonstrating that allowing the CPA title to be used by any group who did not meet the exam requirement would be a bad public policy precedent. The nationally recognized CPA Exam is important to the credibility of the accounting profession in New York and CPAs' ability to best serve the public interest.

And Associates

As the profession's opponents on the registered accountants and CPA exam-waiver issues know, it is easier to get a bill introduced in the Albany legislature than to get it passed. The profession was reminded of this with the proposal to permit sole practitioners with one or more licensed professionals on staff to use "and Associates" in their firm name. Fully supported by the Society, the companion Senate and Assembly bills were first introduced as "And Company," but the Assembly had a concern with this term so an amended version was drafted. The amended bill was successful in the Assembly: From the Economic Development, Job Creation, Commerce, and Industry Committee, it moved to the Assembly Rules Committee, then to the floor of the Assembly where it passed in June.

The Senate Consumer Protection Committee, however, where the bill had jurisdiction, never acted despite the many communications from Society members. The NYSSCPA will continue to press for the proposal, and regroup its member grassroots efforts for a stronger push in the 1999 session.

"Since there seemed to be no problem with the bill's intent that 'and Associates' more accurately reflects many CPAs' practices, the Senate's silencing came as a surprise," Grumet said. "It seems that the issue was a victim in the rush to end the session in time for election campaigning."

The next legislative season could see the registered accountants and CPA exam-waiver bills appear again with different sponsors, different bill numbers, and more amendments. Groups that want the legislation passed are organizing to present proposals again. The Society continues to monitor these issues and will inform and mobilize the membership as required.