December 1999

CPAs Testify on 150-Hour Curriculum

Bill Proposes Earlier Effective Date

By Danielle D'Angelo

Among the issues addressed at the November 16 legislative hearing on Assembly bill 8600, which seeks to reform New York state's accountancy law, was the 150-hour curriculum requirement for CPA licensure. Witnesses at the hearing sponsored by State Assembly Majority Leader Michael J. Bragman (Syracuse) and Assembly Standing Committee on Higher Education Chair Edward C. Sullivan (Manhattan) addressed the pros and cons of the educational requirement as a whole, and the provision in A. 8600 that moves up the effective date of the New York State Board of Regents' regulation that mandates the 150-hour curriculum as a prerequisite to sit for the CPA examination after August 2009.

William Aiken, CFO of the Jewish Child Care Association of New York, expressed concern about the 150-hour requirement's impact on minority access to the profession. He stated that the additional financial burden would be an impediment to minorities interested in becoming CPAs.

Ian Nelson, a sole practitioner and a member of the NYSSCPA board of directors, disagreed with Aiken and stated that the 150-hour curriculum is not the reason minorities do not enter the profession.

"I don't see the 150-hour curriculum as an obstacle to any minority," Nelson said. "I believe the minority community doesn't necessarily understand what CPAs do and so we don't embrace the CPA profession."

Vincent Love, of Kramer and Love, said that there are other ways to address minority access to the profession.

"We shouldn't lower our standards; we should help the kids who need assistance to enter the profession," Love said.

The 150-hour requirement also drew support from Alan Chu, chair of the Society's CPA Candidates Committee, who said it will result in a more well-rounded CPA candidate.

Earlier Effective Date

Assembly Bill 8600 would move the effective date of the 150-hour regulation, which the Regents approved in June 1998, to coincide more closely with the effective date of the proposed legislation. This could, in fact, require compliance with the 150-hour regulation as early as 2005.

George T. Foundotos, the Society's immediate past president, spoke in favor moving up the effective date. He pointed out that New York was the 46th state to pass the 150-hour requirement and that an earlier effective date will help New York take the lead rather than follow the other states in modernizing the regulation of the accounting profession.

On the other hand, Nicholas J. Mastracchio, an accounting professor at SUNY/Albany, however, questioned the ability of some college accounting programs to cope with an earlier effective date.

"If [colleges and universities] planned on having additional time to conform to the 150-hour requirement, they probably will not be able to have a suitable accounting program in time," Mastracchio said. "This could have a serious impact on the viability of the program."

The Assembly hearing also addressed related licensure requirements including a provision in A. 8600 that would broaden the experience requirement. *

Education Licensure Requirements

A. 8600 amends current requirements to require 150 hours of post-secondary education in accounting. The bill moves up the effective date of the current 150-hour Regents regulation to require compliance as early as 2005.