Mat Young, Vice President, State Regulatory and Legislative Affairs, myoung@aicpa.org
Suzanne Jolicoeur, Senior Manager, State Regulatory Outreach, sjolicoeur@aicpa.org
James Cox, Senior Manager, State Legislation, jacox@aicpa.org
Lindsay Patterson, Communications Manager, State Regulatory and Legislative Affairs,lpatterson@aicpa.org Phil Miatkowski, Project Administrator, pmiatkowski@aicpa.org
AICPA State Society Survey State Regulatory and Legislative Issues
Summary November 2014
47 state societies responded to the survey: Alabama, Arizona, California, Colorado, Delaware,
Florida, Georgia, Guam, Hawaii, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maryland,
Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma,
Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah,
Vermont, the U.S. Virgin Islands, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.
Question
Now that most states have enacted individual CPA mobility legislation, is your state facing any challenges or concerns related to the implementation of mobility?
Hawaii, Michigan, Nevada, New York, Ohio, Oklahoma, Oregon, and Virginia reported seeing such proposals.
Question
Did your state consider new legislation that could potentially harm your state’s mobility law such as military licensure, film production tax credits or state tax tribunals in 2014?
Military Licensure – Arizona, Hawaii, Iowa, Maryland, Massachusetts, Minnesota, New Mexico,
Nevada, Oregon, and Pennsylvania Film Production Tax Credits – None
State Tax Tribunals – Alabama, Iowa, and Tennessee Question
Do you anticipate that your state will consider any legislation that could potentially harm your state’s mobility law such as military licensure, film production tax credits or state tax tribunals in 2015?
Question
In regard to the revised definition of attest:
Alabama, Arizona, Colorado, Delaware, Illinois, Indiana, Louisiana, Massachusetts, Montana,
Nevada, New York, North Carolina, North Dakota, Puerto Rico, Tennessee, Texas, Wisconsin, the U.S. Virgin Islands,and Virginia have the new comprehensive definition of attest. Georgia and Iowa
require conforming changes to their definition of attest.
Arkansas, Guam, Iowa, Kentucky, Maryland, Michigan, Minnesota, Oregon, Pennsylvania, Rhode Island,and South Carolina plan to bring legislation on this topic in 2015.
Washington plans to bring legislation on this topic in 2016.
Florida, Hawaii, Idaho, Mississippi, Nebraska, New Jersey, New Mexico, South Dakota,and
Wyoming are not sure when they will bring up the issue.
Do you envision that passing language on the definition of attest will be:
Relatively Easy – Guam, Iowa, Kentucky, Maryland, Michigan, Rhode Island, Utah, and
Washington
Medium Difficulty – Arkansas, Minnesota, Oregon, Pennsylvania, and South Carolina Question
In regard to firm mobility:
Alabama, Arizona, Colorado, Delaware, Idaho, Indiana, North Dakota, Ohio, Rhode Island,
Pennsylvania, Tennessee, Utah, Virginia, and Wisconsin have firm mobility.
North Carolina does not have CPA firm mobility. However, it has reduced requirements. Out-of-state firms must give notice to the board, but do not have to obtain an out-of-state firm permit.
Massachusetts, Rhode Island, and Texas are planning to bring legislation on this topic in 2015. No states plan to bring legislation on this topic in 2016.
Florida, Georgia, Illinois, Iowa, Kentucky, Louisiana, Maryland, Michigan, Minnesota, Mississippi,
Montana, New Jersey, New Mexico, Oklahoma, Oregon, South Carolina, and Washington are not sure when they will move on firm mobility.
Arkansas, Hawaii, Nebraska, New Hampshire, New York, South Dakota, Vermont, the U.S. Virgin Islands, and Wyoming have no plans to move on firm mobility.
Do you envision that passing language on firm mobility will be:
Relatively Easy – California and Texas Medium Difficulty – Massachusetts
Question
During your state’s 2014 legislative session, were any proposals on the licensing of tax preparers considered?
The Illinois CPA Society and the Colorado Society of CPAs indicated that such proposals were considered in 2014.
Question
Do you anticipate this type of proposal in 2015?
Illinois, Indiana, New Jersey, and Ohio anticipate some type of tax preparer legislation in 2015.
Question
What sort of resources would you find helpful in combatting a tax preparer law in your state? (Select all that apply)
Sample Testimony – 16%
FAQs – 28%
3-5pp background document – 22%
All of the Above – 78%
Question
Has your state considered legislation to ban or otherwise restrict the use of biometrics? Do you anticipate such legislation next year?
No states reported seeing this issue in 2014, and no states expect to see it next year.
Question
States often have CPE requirements which can present a challenge for those CPAs with licenses in multiple jurisdictions, such as state-specific ethics requirements. Has this been an issue for CPAs in your state?
Arizona, Delaware, Louisiana, Maryland, New Jersey, South Carolina, and Washington indicated this was an issue.
Question
Does your state board allow a licensee with multiple licenses, whose principal residence is not in your state, to meet his/her home state's CPE requirements in lieu of meeting your state's CPE requirements?
Alabama, California, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Louisiana, Maryland,
Montana, Nebraska, Nevada, New Mexico, New York, North Carolina, North Dakota, Ohio,
Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Texas, Virginia, and
Wisconsin answered yes to this question.
Georgia, Massachusetts, Michigan, Minnesota, Mississippi, Utah, Washington, and Wyoming
reported they do not, but they would be willing to approach their board about updating this provision to reflect the UAA.
Question
Do you anticipate legislation in your state to legalize marijuana for medicinal or recreational use in 2015?
Arizona, Arkansas, Florida, Georgia, Guam, Kentucky, Minnesota, Nevada, Oregon, Pennsylvania,
Utah, the U.S.Virgin Islands, and Wyoming anticipate marijuana related bills during their 2015 legislative sessions.
Question
Many states have considered tax reform measures which included the taxing of professional services provided by CPAs and CPA firms. Did your state consider a tax on professional services in 2014?
Massachusetts, North Carolina, Ohio, Pennsylvania, and Virginia indicated their states considered such a proposal in 2014.
Question
Do you anticipate your state will consider a tax on professional services in 2015?
Georgia, Indiana, Louisiana, Maryland, Massachusetts, Nevada, North Carolina, Ohio,
Pennsylvania, Tennessee, Virginia, and Washington expect their states will consider a tax on professional services in 2015.
Question
What is your society's position on a potential tax on professional services?
Already have one – Delaware, Guam, New Mexico, South Dakota, and the U.S. Virgin Islands
Would oppose under all circumstances – Arizona, California, Florida, Maryland, Massachusetts,
Minnesota, Mississippi, Nebraska, New Hampshire, New Jersey, Ohio, Pennsylvania, Rhode Island,
Tennessee, Texas, Virginia, Washington and Wisconsin
Generally oppose, may support as part of larger tax reform – Alabama, Idaho, Illinois, Indiana, Iowa,
Kentucky, Louisiana, Nevada, Oklahoma, South Carolina and Utah
Support – None
No position – Arkansas, Colorado, Georgia, Hawaii, Michigan, Montana, New York, North Carolina, Oregon, and Wyoming
Question
States facing budget deficits often explore the consolidation of state agencies including boards of accountancy as a way of saving money. Did your state consider such a proposal in 2014?
North Carolina, Oregon, and Wyoming explored state board consolidation in 2014.
Question
Do you anticipate your state considering such a proposal in 2015?
Arkansas, North Carolina, Ohio, Oregon, and Wyoming expect to consider the issue in 2015.
Question
Some states are considering initiatives to make their Board of Accountancy a semi-independent agency. Did your state consider this type of legislation in 2014?
Georgia considered an initiative in 2014 to make its board of accountancy a semi-independent agency.
Question
Are you considering such proposals in 2015?
Georgia reported it will consider such a proposal.
Question
Were changes to your state's accountancy statute or regulations enacted during the 2014 legislative session?
Alabama, Arizona, Delaware, Florida, Georgia, Illinois, Indiana, New Jersey, Ohio, South Carolina,
the U.S. Virgin Islands, Virginia, Washington made changes to their jurisdictions’ accountancy statutes
or regulations in 2014.
Question
Do you anticipate changes in 2015?
The following jurisdictions anticipate changes to their accountancy statutes or regulations in 2015:
Alabama, Arizona, Arkansas, California, Delaware, Georgia, Guam, Hawaii, Indiana, Iowa,
Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Montana,
Nebraska, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Texas, Virginia, and
Wisconsin.
Question
Is your state’s accounting statute set to expire in 2015 or 2016? 2015 – None
2016 – Tennessee
Other – California, Maryland, New Hampshire, Texas, Utah Question
Have you had any activity in 2014 in the area of unauthorized practice of law by your state bar association, a state agency, or your state Supreme Court?
Ohio, Pennsylvania, South Carolina, and Wyoming had activity in 2014 in the area of unauthorized practice of law by either their state bar association, a state agency, or their state Supreme Court.
Question
Do you anticipate your legislature considering some type of legal liability reform legislation in the 2015 legislative session?
Kentucky, Maryland, Minnesota, Montana, New Jersey, and Pennsylvania anticipate some type of legal liability reform legislation in 2015.
Question
Do you anticipate your state legislature considering some type of legislation to expand whistleblower rules?
Kentucky and New York expect legislation to expand whistleblower rules.
Question
Was "ban the box" legislation considered at the state or local level in 2014?
State Level – Illinois, Minnesota, New Jersey, Ohio, Rhode Island, and Washington
Local Level – Maryland, Pennsylvania, and Virginia
Both Levels – Kentucky and New York Question
Are you aware of any attempts to introduce "ban the box" legislation in 2015?
Kentucky expects “ban the box” legislation next year.
Question
Do you expect mandatory audit and/or audit partner rotation to be an issue in your legislature next year?
Massachusetts and New Jersey expect the issue to surface in 2015.
Question
Have any of your members or their firms holding multiple state licenses, been disciplined for actions that occurred in a state other than the state that issued the discipline?
California, Delaware, Michigan, New Jersey, Texas, and Virginia reported that some of their members have been disciplined.
Question
In 2014, did any proposals occur on the licensing of other professions that include some CPA activities, such as private investigators, debt management or real estate appraisers?
Private Investigators – Colorado, Michigan, Oregon, South Carolina and Virginia
Debt Management – Massachusetts and Utah
Real Estate Appraisers – Minnesota and the U.S. Virgin Islands Question
Is state pension reform an important issue for your society?
State pension reform is an important issue in Alabama, Colorado, Georgia, Massachusetts, Nevada,
Utah, and the U.S. Virgin Islands, but they have not examined the issue.
State pension reform is an important issue in Ohio, Pennsylvania, and Rhode Island; and these states have a position.
Illinois, Indiana, Maryland, Michigan, Minnesota, New Jersey, South Carolina and Virginia would like the profession to develop some thought leadership on the topic.
Arizona, California, Delaware, Florida, Guam, Hawaii, Idaho, Iowa, Louisiana, Mississippi,
Montana, Nebraska, New Mexico, New York, North Carolina, North Dakota, Oregon, South Dakota, Tennessee, Texas, Washington, Wisconsin and Wyoming reported it was not issue.
Question
Do you have a specific initiative to build relationships with minority lawmakers in your legislature?
Florida has a program in place.
Indiana, Iowa, New York and North Carolina have programs, but would like ideas.
Arizona, California, Colorado, Georgia, Idaho, Illinois, Illinois, Louisiana, Maryland, Michigan,
Mississippi, New Jersey, New Mexico, Ohio, Rhode Island, South Carolina, Texas, Utah, the U.S. Virgin Islands and Washington do not have initiatives, but have good relations.
Alabama, Arkansas, Massachusetts, Oklahoma, Pennsylvania, and Virginia do not have programs, but would like to have one.
Delaware, Guam, Hawaii, Montana, Nebraska, Nevada, North Dakota, Oregon, South Dakota,
Tennessee, Wisconsin, and Wyoming indicated this is not an issue in their jurisdictions.
Question
How regularly do you or your colleagues at your society use CAPITOL? Often – Iowa, Maryland, Massachusetts, and Rhode Island
Sometimes – Alabama, California, Georgia, Hawaii, Idaho, Illinois, Indiana, Louisiana, Michigan,
Minnesota, Mississippi, Nebraska, New Jersey, New Mexico, North Carolina, Ohio, Oklahoma,
Pennsylvania, South Carolina, South Dakota, Texas, Washington, Wisconsin, and Wyoming
Never – Arizona, Arkansas, New York, and Virginia
Never, and I’ve never heard of it. – Colorado, Delaware, Florida, Guam, Montana, Oregon,
Tennessee, Utah, and the U.S. Virgin Islands Question
What were the top three issues you advocated for in your state legislature in 2014?
State CPA Society Responses: Alabama
Definition of Attest
Alabama Tax Tribunal
Arizona
Service tax
Accountancy board clean-up legislation
California
Property tax agent registration
Legislation that would have required CPAs to register with the Secretary of State's Office for services that already fall within the scope of their practice as a CPA
Colorado
Excluding CPAs from tax preparer disclosure requirements proposed but later killed
Georgia
State Board Autonomy
Tax Reform
Medicinal Marijuana Legislation
Guam
Our bill to establish our $1mm agency advised endowment fund at the University of Guam,
Testimony against a bill that would complicate our licensing process
Idaho
Clarification to state tax law
Illinois
Provisional Licensure
Alignment of state tax code with Federal Code on treatment of net losses for trust and estates
Local Government Audit clarification
Indiana
Definition of attest
Changes to Accountancy Act
Property tax deadlines
Iowa
Proper use of audit
Coupling of tax code
Making sure Iowa Bill Home base Iowa didn't conflict with CPA licensure
Maryland
MD Estate Tax - Unified Credit
Combined Reporting
Sales tax on professional services
Massachusetts
Advocated repeal of a bill which imposed a sales tax on computer design and software services
Advocated an exemption for CPAs from a debt management bill
Michigan
Business tax reform
Resident manager legislation
School and municipal audit reform
Minnesota
Federal Tax conformity
Repeal of professional services taxes that passed in 2013 and tax reform
New Jersey
Passing Appeal bond cap legislation
NJ Estate/inheritance tax reform
Passing legislation to change composition of board of accountancy
New Mexico
Passed legislation to make our tax code provisions on Net Operating Loss more competitive with other states
New York
Non-CPA ownership
Protection of school district internal audit function
Estate tax reform
North Carolina
Tax reform
No consolidation of our licensing board
Uniform taxation of business activities
Ohio
State tax reform
Municipal tax reform
Various tax-specific issues
Oregon
CPA Exemption from Private Investigator Dual-Licensure
Umbrella Agency Avoidance
Pennsylvania
Clarification of a local tax law
Sales Tax on Services
Pension Reform
Rhode Island
Corporate tax reduction: 9 % to 7% passed
Eliminating the cliff on estate taxes and raising the level to $1.5 million
Retention of Ed. Commissioner and the creation of a consolidated Tech High School to meet the demands of high quality trade fulfillment
South Dakota
AMT Banking Tax Proposal
Bank franchise Apportionments
Internet sales tax
Tennessee
State tax tribunals
Retaining right to identify state board candidates
State tax issues
Utah
.5 financial literacy credit to graduate from high school
U.S. Virgin Islands
UAA
Virginia
Tax conformity
Patent infringement
Export incentives
Washington
Tax tribunals
Wisconsin
Keeping a college education requirement to take the CPA exam
Updating regulations to reflect current dates of accounting standards
Question
What do you expect to be your Society’s top three issues in 2015?
State CPA Society Responses: Alabama
Health Savings Accounts - conform state tax rules with the federal tax treatment streamline sales/use tax system
Implement a unified audit process for Department of Revenue then local municipalities
Arizona Service tax
Tax reform (conformity, corrections)
TPT implementation
Arkansas
Discontinue State Board's quality review program
California
Sunset Review of Board of Accountancy
Relationship Building with Freshmen Legislators
Colorado
Competitive challenges to the organization overall
Delaware
Monitoring the legislation from the SBOA
Georgia
Tax Reform - Tax on services have been mentioned along with a reduction in state income tax
State Board legislative fixes
Monitor openings for a change to PI Statute
Medicinal marijuana
Guam
Get our law update passed
Hawaii
CPA mobility
Idaho
Conformity with IRS Code
Possible restructure to state tax commission
Streamlined sales tax
Illinois
Alignment of state tax code with Federal Code on treatment of net losses for trust and estates
Defense of profession and practice areas
Defense on service tax if introduced
Defense on tax preparer registration legislation if introduced
Indiana
Firm permit clarification
Government audits-schools
Tax changes-simplification and competitiveness
Iowa
Attest language conforming
Exempting CPAs from PI licensing
Professional Corporations allowing non CPA ownership
Louisiana
Budget Deficit
Tax Reform
Maryland
Sales tax on professional services
Amend definition of attest
Lower the appeal bond cap
Massachusetts
Non-CPA leadership
Several revisions to statutes governing the Department of Revenue
Advocating against a sales tax on services
Michigan
Definition of Attest
Treasury Department Reform
School district and municipal audit reform
Minnesota
Pass legislation prohibiting the Department of Revenue and the Courts from using the location of a taxpayer's professional advisors as a determining factor when looking at domicile for tax purposes
Federal Tax Conformity
Tax reform and simplicity
Montana
Tax Simplification
Board of Accountancy (2-tier to 1-tier, Enterprise Funding)
Exempt CPAs from PI licensing
Nevada
Tax on professional services
Tax reform for increased revenue for education funding
Potential pension reform legislation
New Jersey
NJ estate/inheritance tax reform
Passing appeal bond cap legislation
Stopping efforts to impose higher taxes on businesses and upper income residents
New Mexico Tax legislation
Audits
State bid procedure
New York
Non-CPA ownership
CPA exemption from PI licensing
North Carolina
Sales tax on professional services
Uniform business activity taxes
Consolidation
Ohio
State tax reform
Implementation of municipal tax reform if we are successful in lame duck
Oklahoma
Firm Mobility
Tweaks to attest definition
Oregon Attest
BOA Budget / Umbrella Agency Avoidance
Effects of Recreational Marijuana Legalization if passes November ballot
Pennsylvania Pension Reform
Change in definition of attest & non-CPA firm ownership
Appeal Bond Caps
Sales Tax on Services
Rhode Island
Regulatory reform
Tax incentives for businesses
South Carolina Tax conformity
Tennessee
Sales tax on services
Texas
Firm mobility
Preparation services
Elimination of redundant filings
Utah
Requiring the state auditor to be a CPA.
Ethics requirement as part of our 80 hours required to be submitted bi-annually
U.S. Virgin Islands NIIT
Scholarships
Peer Review
Virginia
Tax conformity
Repeal of debit card tax refund mandate
Tax reform
Washington
Sweeping of state board funds, scholarships for future CPAs
P.I. statute, CPA exemption
Taxes, Sales tax on professional services
Wisconsin