SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

[First Reprint]

ASSEMBLY, No. 5598

STATE OF NEW JERSEY

DATED:  NOVEMBER 13, 2025

      The Senate Budget and Appropriations Committee reports favorably Assembly Bill No. 5598 (1R).

      As reported, this bill updates the means by which an individual may obtain a license in public accountancy by the New Jersey State Board of Accountancy.  Under the bill, an individual is to have at least a baccalaureate or higher degree or its equivalent.  The bill further stipulates that an individual is to not be licensed unless they have earned that degree or have successfully completed 150 hours of education.  The degree earned or 150 hours of education completed are to be obtained from an institution of higher education accredited by a regional accrediting agency recognized by the Commission on Higher Education and are to demonstrate a concentration in accounting or its equivalent and related professional courses, as determined by the board.

      The bill also removes substantial equivalence as the standard to be met for out-of-State individuals and instead requires comparable standards to be met, among other items, for the individual to receive a New Jersey license.  Additionally, the bill removes the need to meet standards established by the National Association of State Boards of Accountancy in order to qualify for licensure as an out-of-State individual.  An individual is to, instead, hold a current valid and unrevoked license in another U.S. jurisdiction; pass the Uniform Certified Public Accountant Examination or any other examination approved by the board; and has one year of experience as required by current law.  The bill further stipulates that an individual who holds a current valid license from the other state prior to December 31, 2025 and as of that date, has practice privileges in New Jersey is allowed to continue having all the privileges of licensed certified public accountants of the State without the need to obtain a license pursuant to the other requirements of current law, to notify the board, or to pay any fee.

      Moreover, on experience, the bill delineates the individuals who need to complete two years of certain experience and one year.  Lastly, the bill also updates when examination waivers apply to individuals.

      As reported by the committee, Assembly Bill No. 5598 (1R) is identical to Senate Bill No. 4493, which was also reported by the committee on this date.

FISCAL IMPACT:

      The Office of Legislative Services (OLS) concludes that annual State revenues and expenditures may fluctuate by an indeterminate amount under the bill.  The OLS cannot quantify the net fiscal impact of the bill, given a lack of information regarding:  (1) the number of new licensees generated from the updated educational requirements for licensure; (2) the number of decreased license renewals by licensees currently licensed in multiple states, which may not choose to renew the New Jersey license; and (3) the increase in New Jersey expenditures from regulating interstate reciprocal and new licensees.

      The bill clarifies that an applicant for licensure is required to have a baccalaureate or an equivalent degree or complete 150 hours of education, which may increase the number of licensees by an indeterminate amount.  Further, the bill provides that out-of-state licensed professionals practicing in New Jersey do not need to seek licensure, notify the board, or pay any fee.  Annual State revenues may fluctuate by an indeterminate amount, depending upon the number of new licensees added and the number of currently licensed interstate professional accountants living out-of-state who may choose not to renew their New Jersey license.

      There may be increases in board operating expenses to regulate interstate professional accountants who practice in the State and new licensees as a result of the bill.