PROPOSED RULEMAKING
STATE BOARD OF ACCOUNTANCY
[49 PA. CODE CH. 11]
Fees
[30 Pa.B. 2376] The State Board of Accountancy (Board) proposes to amend § 11.4 (relating to fees) to read as set forth in Annex A.
Effective Date
The proposed amendment would become effective upon publication of the final-form regulation in the Pennsylvania Bulletin.
Statutory Authority
Section 3(6) of The C.P.A. Law (act) (63 P. S. § 9.3(6)), authorizes the Board to establish fees for its operations. Section 6 of the act (63 P. S. § 9.6) requires the Board to establish fees by regulation and to ensure that revenues derived from fees are adequate to cover the Board's expenditures over a biennial period.
Background and Purpose
The Board's general operating expenditures are funded through fees for biennial renewal of licensees. Expenditures related to services that the Board provides to licensees and applicants are defrayed through user fees based on the actual costs of providing the services.
In a recent systems audit of the Board's operations conducted by the Revenue Office of the Bureau of Professional and Occupational Affairs, the fees for services provided to individual licensees and applicants were analyzed to determine if they accurately reflected the actual costs of providing the services. Actual cost calculations were based upon the following formula:
number of minutes to perform the service
x
pay rate for the classification of personnel
performing the service
+
a proportionate share of administrative overheadThe audit revealed that the existing fees for certification and initial licensure of a certified public accountant, temporary practice permit, verification of certification, registration or licensure and certification of examination scores were less than the actual costs of providing the services. The Revenue Office recommended that the fees for those services be raised to reflect the Board's actual costs.
The Revenue Office also recommended that the Board establish a new fee to defray the actual costs associated with reinstating an inactive or expired license. Section 9.2(d)(2) of the act (63 P. S. § 9.9b(d)(2)), was amended in 1996 to require a fee.
The Board's proposal would implement the Revenue Office's recommendations regarding user fees for Board services. The Board would continue to apportion its general operating costs to the general population of licensees when the Board makes its statutorily required biennial reconciliation of revenue and expenditures.
Description of Proposed Amendment
The proposed amendment would revise the Board's schedule of users fees as set forth in Annex A.
In the interests of improving the organization of Board regulations, the proposed amendment also would relocate to § 11.4 the temporary practice fee, which currently appears in § 11.5 (relating to temporary practice in this Commonwealth), and the examination fees, which currently appear in § 11.17 (relating to submission of examination application and examination fees). The Board intends to amend §§ 11.5 and 11.17 in a separate rulemaking initiative relating to general revisions (16A-559).
The proposed amendment also would make editorial changes to the descriptions of the fees. The $45 fee currently labeled as ''application for certification'' applies to both the initial certification and licensure of a certified public accountant and the initial licensure of a public accounting firm. Because the actual costs associated with the certification and initial licensure of a certified public accountant have increased by $20 (thus necessitating an increase in the fee) but not those associated with the initial licensure of a public accounting firm, the proposed amendment would separate the current fee into two fees: a $65 fee for certification and initial licensure of a certified public accountant and a $45 fee for initial licensure of a public accounting firm.
Fiscal Impact
The Board projects that the revised schedule of fees would generate additional revenues totaling approximately $36,875 during each fiscal biennium. The additional biennial revenues are broken down as follows:
Service Estimated Fee-Payers Fee Increase Additional Revenues Certification and Initial Licensure of Certified Public Accountant 1,000 x $20 = $20,000 Temporary Practice Permit 75 x $5 = $375 Reinstatement of Inactive or Expired License 200 x $35 = $7,000 Certification of Examination Scores 900 x $10 = $9,000 Verification of Certification, Registration or Licensure Status 100 x $5 = $500 Total $36,875
Paperwork Requirements
The proposed amendment would require the Board to change certain forms to reflect the revised schedule of fees. The proposed amendment would not create additional paperwork requirements for the regulated community.
Compliance with Executive Order 1996-1
In accordance with Executive Order 1996-1 (relating to regulatory review and promulgation), the Board, in drafting and promulgating the proposed amendment, considered the least restricted alternative to regulatory costs for services requested by individual licensees and applicants.
Regulatory Review
On May 3, 2000, as required by section 5(a) of the Regulatory Review Act (71 P. S. § 745.4(a)), the Board submitted copies of this notice of proposed rulemaking to the Independent Regulatory Review Commission (IRRC), the Senate Standing Committee on Consumer Protection and Professional Licensure and the House Standing Committee on Professional Licensure. The Board also provided IRRC and the Committees with copies of regulatory analysis and fee report forms prepared in compliance with Executive Order 1996-1. Copies of these forms are available to the public upon request.
Under section 5(g) of the Regulatory Review Act, if IRRC has objections to the proposed amendment, it will notify the Board within 10 days after the close of the Committees' review period, specifying the regulatory review criteria that have not been met. The Regulatory Review Act sets forth procedures that permit IRRC, the General Assembly and the Governor to review objections prior to final adoption of the amendment.
Public Comment
The Board invites interested persons to submit written comments, suggestions or objections regarding the proposed amendment to Steven Wennberg, Counsel, State Board of Accountancy, P. O. Box 2649, Harrisburg, PA 17105-2649 within 30 days following publication of this notice of proposed rulemaking in the Pennsylvania Bulletin.
THOMAS J. BAUMGARTNER, CPA,
ChairpersonFiscal Note: 16A-558. No fiscal impact; (8) recommends adoption.
Annex A
TITLE 49. PROFESSIONAL AND VOCATIONAL STANDARDS
PART I. DEPARTMENT OF STATE
Subpart A. PROFESSIONAL AND OCCUPATIONAL AFFAIRS
CHAPTER 11. STATE BOARD OF ACCOUNTANCY
GENERAL PROVISIONS § 11.4. Fees.
[(a)] Following is the schedule of fees charged by the Board:
Complete CPA examination. (Four
parts)$135 Three parts $112.50 Two parts $90 One part $67.50 AICPA examination administration to
candidates of other state boards$100 [Application for certification] Certifi-
cation and initial licensure of certified
public accountant$[45] 65 Initial licensure of public accounting
firm$45 Temporary practice permit $25 Biennial renewal [for] of license of
certified public [accountants] accoun-
tant, public [accountant, partnerships,
professional corporations and profes-
sional associations] accountant or
public accounting firm$45 Reinstatement of inactive or expired
license$35 Certification of examination scores $[15] 25 Verification of certification, registra-
tion or licensure$[10] 15 [(b) Upon implementation, these fees will have retroactive effect to February 1, 1990.]
[Pa.B. Doc. No. 00-792. Filed for public inspection May 12, 2000, 9:00 a.m.]
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