NASBA

Advocacy Update: 2023 Legislative Session recap

133345 — Thu, 04 May 2023 19:48:47 +0000

Advocacy Update: 2023 Legislative Session recap

133345 Thu, 05/04/2023 - 15:48

May 5, 2023

Friday marked the end of Florida's 2023 Legislative Session in Tallahassee, and FICPA President & CEO Shelly Weir and Liberty Partners of Tallahassee President Jennifer Green are here to walk you through all the latest news and notes impacting the CPA profession.

Our May 5 edition of Advocacy Update features:

A detailed recap of our advocacy work during the 2023 Session
Information on IRS and DOR tax relief for Broward County storm victims
Details on what NASBA's CPA Exam announcement means for Florida candidates
Maria Caldwell's nomination as NASBA Vice Chair
And Melanie Griffin's reconfirmation as Florida's DBPR Secretary

2023 Legislative Session Wrap-Up

Throughout the last 60 days, the FICPA Governmental Affairs Team has worked diligently to ensure FICPA members were protected from legislation that could have had a negative impact on the CPA profession.

Some of our key legislative victories from this session include:

Interstate-Mobility and Universal-Recognition Occupational Licensing Act

Throughout the committee process, we met with Sen. Jay Collins to ensure CPAs licensed under Chapter 473 were exempted from Senate Bill 1364. Senator Collins agreed with the FICPA’s concerns and proposed an amendment to exempt CPAs from the bill, which was subsequently adopted in committee. The House also amended House Bill 1333 by Rep. Traci Koster to exempt CPAs.

The bills did not pass.

Department of Financial Services

The FICPA team also worked closely with the Chief Financial Officer’s office and bill sponsors in the House and Senate to address concerns within House Bill 487. Through conversations with the CFO’s office, we shared our issues regarding provisions related to continuing education requirements for CPAs in the original bill. Following our conversations, the concerning provisions were removed from the bill through an amendment.

The House Bill unanimously passed the Senate floor on April 28 and the House floor on May 3, and is awaiting Gov. DeSantis’ signature into law.

Continuing Care Contracts

By working with stakeholders, Sen. Clay Yarborough and Senate staff, the FICPA team effectively revised language in continuing care contract legislation that addressed the FICPA’s concerns. Through our efforts, the FICPA’s proposed changes were included in an amendment to Senate Bill 622, as well as an amendment to House Bill 1573.

The House Bill passed both chambers and awaits Gov. DeSantis’ signature.

Tax Package

The FICPA also closely monitored the state’s proposed tax package for FY 2023-24. The proposal – HB 7063 – includes:

Permanent sales tax exemptions on baby items such as diapers, wipes and strollers, as well as oral hygiene products
A one-year sales tax exemption on certain ENERGY STAR appliances such as refrigerators, water heaters, washing machines and dryers
Two 14-day Back-to-School Sales Tax Holidays
A 14-day Disaster Preparedness Sales Tax Holiday.
A seven-day “Tool Time” Sales Tax Holiday for certain tools and safety equipment.
A three-month “Freedom Summer” Sales Tax Holiday on certain outdoor recreational items and specified admissions to attractions.

While not ultimately included in the tax package this session, the FICPA continues to work with legislators, staff and the Department of Revenue to include mandatory tax extensions during and after a natural disaster. We will keep pursuing this issue in an effort to get it included in the Legislature’s tax package next session.

FY 2023-24 Budget

On Friday, the Legislature will pass a $117 billion budget for FY 2023-24. A few highlights of the budget include:

$200,000 for the Clay Ford Scholarship Program
$100,000 for unlicensed activity enforcement relating to CPAs
$10.9 billion in total reserves
5% pay increase for all state employees
2% increase to Investment Plan employer contributions
$350 million for the Hurricane Ian and Nicole Recovery Grant Program within the Division of Emergency Management
$118 million for housing and community development projects

Once presented to Gov. DeSantis (who has line-item veto authority), he will have 15 days to take action on the spending plan.

We would like to take a moment to thank Guy Strum, chair of our CIRA Legislative Subcommittee; Yvonne Clayborne, chair of our State and Local Government and State Legislative Policy legislative subcommittees; and all of our FICPA governmental affairs committee members for their input and discussion throughout Session.

As we gear up for the 2024 Session, we look forward to advocating on behalf of the profession and continuing to be your voice in Tallahassee.

Latest News

Broward County Storm Victims Qualify for IRS and DOR Tax Relief

Florida storm victims now have until Aug. 15, 2023, to file various federal individual and business tax returns and make tax payments, the IRS announced on Tuesday.

The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA) as a result of tornadoes, severe storms and flooding that occurred from April 12 to 14. This means individuals and households that reside or have businesses in Broward County qualify for tax relief. Other areas added later to the disaster area will qualify for the same relief. The current list of eligible localities is always available on the disaster relief page on IRS.gov.

The tax relief postpones various tax filing and payment deadlines that occurred starting on April 12, 2023, and is based on an April 27 FEMA disaster declaration. As a result, affected individuals and businesses will have until Aug. 15, 2023, to file returns and pay any taxes that were originally due during this period.

On Friday, the Florida Department of Revenue announced it will follow the tax relief granted by the Internal Revenue Service (IRS) regarding tax return due dates for affected taxpayers, including victims of severe storms, tornadoes, and flooding in Florida. Eligible taxpayers that file Florida corporate income/franchise tax returns with original or extended due dates falling on or after April 12, 2023, and before Aug. 30, 2023, will now have a due date of Aug. 30, 2023. This tax relief is applicable to affected businesses in Broward County.

CPA Exam Update: NASBA Adopts Rule Extending Length of Candidate Conditional Credit

On April 24, the National Association of State Boards of Accountancy (NASBA) “announced the adoption of an amendment to the Uniform Accountancy Act Model Rules pertaining to the Uniform CPA Examination (Exam).” 

In part, NASBA’s amendment recommends state Boards of Accountancy extend the window for passing the CPA Exam to 30 months. Next, the Florida Board of Accountancy (BOA) will decide whether to extend our state’s window accordingly. It is important to note that until the BOA determines its position on NASBA’s recommendations, there are no permanent changes in place to the current 18-month exam window in Florida.

Separately, students, candidates and educators should be aware that a temporary extension to the exam window is already in place related to the launch of the new CPA Exam, set to take effect on Jan. 1, 2024. The Florida BOA recently passed a resolution to extend the window for those taking the new Exam. This temporary extension provides a longer period to pass all four sections.

Who does this temporary extension affect? Anyone taking one or more parts of the CPA Exam between now and Dec. 31, 2023, OR anyone with scores set to expire between Jan. 1, 2024, and June 29, 2025. Those affected will have until June 30, 2025, to pass all four sections of the Exam.

The FICPA will continue to monitor the situation and communicate any and all changes that students, candidates and educators need to know. 

NASBA Nominates Caldwell for Vice Chair

On Wednesday, the National Association of State Boards of Accountancy (NASBA) Nominating Committee met to select its candidate for vice chair, 2023-2024. We are pleased to announce Maria E. Caldwell, CPA, of Miami, as the Committee’s nominee.

Maria is a former Southeast regional director of NASBA and currently serves as treasurer and director-at-large on the NASBA Board of Directors. Her appointment to the Board holds great significance, as she is the first Hispanic woman to serve on the NASBA Board.

We're excited to see one of Florida's own leading the way at the national level, and we can't wait to work together to drive the CPA profession forward!

Read the full announcement here.

Senate Reconfirms Griffin as DBPR Secretary

The FICPA is happy to announce Department of Business and Professional Regulation (DBPR) Secretary Melanie Griffin was reconfirmed by the Florida Senate on Thursday.

Speaking before the Senate Ethics and Elections Committee in February, Secretary Griffin told Senators she has always wanted to serve in Tallahassee.

“I came here as a 17-year-old kid to Girls State and sat in the Capitol and thought, ‘I am meant to be here and serve in some capacity,'” she said.

A Bradenton native, Secretary Griffin was a lawyer with Shumaker, Loop & Kendrick before her appointment as DBPR secretary in December 2022. She also is a senior adviser for business-to-business relationships for Shumaker Advisors Florida and the founder of Spread Your Sunshine, which provides speaking and professional training services and sells inspirational products.

Secretary Griffin received finance, business and law degrees from Florida State University. Since taking the helm at DBPR, Griffin has overseen a modernization project to overhaul the call center and website to make it friendlier to licensees.

Congratulations, Secretary Griffin! We look forward to continuing our longstanding, successful partnership with DBPR throughout this year and beyond.

2023 Bill Tracker

HB 103/SB 182: Taxpayer Delinquencies

HB 103: Taxpayer Delinquencies by Rep. Felicia Robinson (Co-introducers: Reps. Anna Eskamani, Dianne Hart)
Referred to Ways & Means; Appropriations

Requires DOR to convene informal conference regarding delinquencies in payment of tax, interest, or penalties; requires DOR to compromise taxpayer's liability for taxes & interest under specific conditions; creates rebuttable presumption if taxpayer does not provide specified records; authorizes DOR to settle or compromise penalties; requires DOR to give notice of amount of delinquency to informally resolve delinquency; specifies taxpayer may receive assistance from taxpayers' rights advocate; requires DOR to issue notice of intent to garnish.

Effective date: July 1, 2023

Status: 3/7/2023 House – 1st Reading (original filed version)

SB 182: Taxpayer Delinquencies by Sen. Ana Maria Rodriguez
Referred to Community Affairs; Finance and Tax; Fiscal Policy

Requiring the Department of Revenue, if requested by a taxpayer, to convene an informal conference to discuss a compromise of the taxpayer’s liability for any tax, interest, or penalty; requiring the department to take no action during the course of the informal conferencing; authorizing the department to settle or compromise certain penalties under specified circumstances; requiring, rather than authorizing, the department’s executive director or his or her designee to give a specified notice of a delinquency to attempt to informally resolve the delinquency, etc.

Effective date: July 1, 2023

Status: 3/7/2023 Senate – introduced

CS/CS/SB 154: Condominium and Cooperative Associations by Fiscal Policy, Regulated Industries Sen. Jennifer Bradley (Co-introducer: Sen. Nick DiCeglie)
Referred to Regulated Industries, Fiscal Policy

Revising the circumstances under which community association managers or management firms must comply with a specified provision; revising the definition of the terms “milestone inspection” and “substantial structural deterioration”; authorizing local enforcement agencies to make certain determinations relating to milestone inspections after a building reaches a specified age; authorizing municipal governing bodies to adopt certain ordinances relating to association repairs; revising the types of policyholders not required to purchase flood insurance as a condition for maintaining certain policies issued by the Citizens Property Insurance Corporation; revising condominium association reserve account requirements, etc.

Effective date: Except as otherwise expressly provided in this act, this act shall take effect upon becoming a law

Status: 5/3/2023 Senate – Concurred in 1 amendment(s) (342313) - SJ 779; CS passed as amended, YEAS 39 NAYS 0 - SJ 779; ordered engrossed, then enrolled

HB 487/SB 1158: Department of Financial Services

CS/CS/HB 487 by Commerce Committee, Insurance & Banking Subcommittee, Rep. Michelle Salzman
Referred to Insurance & Banking Subcommittee; Appropriations; Commerce

Removes provisions prohibiting individuals holding specified insurance licenses from holding certain other insurance licenses; provides disposition of funds received by title insurance agencies & funds required to be maintained in escrow trust accounts; exempts appointed public adjusters from certain insurance activities' prohibitions; requires navigators' registrations to expire under certain circumstances; prohibits insurers & insurance agents from engaging in specified practices relating to collateral protection property insurance; removes certain financial requirements for warranty associations & parent corporations; prohibits department from issuing temporary bail bond agent's licenses; specifies procedures for remission of forfeitures of deceased defendants; specifies procedures for remission of forfeitures of defendants for whom state is unwilling to seek extradition.

Effective date: Upon becoming a law

Status: 5/3/2023 House – Added to Senate Message List; Amendment 861932 Concur; Amendment 118852 Concur; CS passed as amended, YEAS 112, NAYS 0; ordered engrossed, then enrolled

CS/CS/CS/SB 1158 by Appropriations Committee on Agriculture, Environment and General Government; Banking and Insurance; Sen. Nick DiCeglie
Referred to Banking and Insurance; Appropriations Committee on Agriculture, Environment and General Government; Fiscal Policy

Revising powers and duties of the department’s Division of Investigative and Forensic Services; deleting a requirement for the Department of Children and Families and the community-based care lead agency to provide certain financial literacy curriculum information to certain youth; revising conditions for a nonprofit religious organization to be exempt from requirements of the Florida Insurance Code; adding violations for which the department may pay rewards under the Anti-Fraud Reward Program; authorizing the Division of State Fire Marshal to establish a direct-support organization; specifying requirements and procedures for the licensure of nonresident sales representatives for home warranty associations, etc.

Effective date: Except as otherwise expressly provided in this act, this act shall take effect upon becoming a law

Status: 4/28/2023 Senate – Read 2nd time - SJ 618; substituted CS/CS/HB 487 - SJ 621; Laid on Table, refer to CS/CS/HB 487 - SJ 621

CS/SB 622: Continuing Care Contracts by Banking and Insurance, Sen. Clay Yarborough
Referred to Banking and Insurance; Appropriations Committee on Agriculture, Environment and General Government; Fiscal Policy

Revising requirements for feasibility studies submitted by providers applying for expansions of certificated continuing care facilities; revising information required to be contained in certain providers’ financial reports in their annual reports; authorizing the office, upon a provider’s written request, to temporarily suspend financial and operating requirements under ch. 651, F.S., for specified reasons; specifying the authority of residents’ councils and the eligibility of persons to participate in residents’ council matters; revising applicability of a specified time limit on the use of sheltered nursing home beds for certain persons, etc.

Effective date: July 1, 2023

Status: 5/3/2023 Senate – Read 2nd time - SJ 731; substituted CS/CS/HB 1573 - SJ 731; Laid on Table, refer to CS/CS/HB 1573 - SJ 731

CS/CS/HB 837: Civil Remedies by Judiciary Committee, Civil Justice Subcommittee, Rep. Tommy Gregory, Rep. Tom Fabricio (Co-introducers: Reps. Webster Barnaby, Mike Caruso, Sam Killebrew, Vicki Lopez, Randy Magard, Rick Roth)
Referred to Civil Justice Subcommittee, Judiciary Committee

Creates rebuttable presumption that lodestar fee is sufficient & reasonable attorney fee in most civil actions; creates exception to lawyer-client evidentiary privilege relating to lawyer's referral of client to medical provider; reduces statute of limitations for negligence actions; provides standards for bad faith actions; provides standards for admissibility of evidence to prove cost of damages for medical expenses; requires disclosures for medical expenses for treatment rendered under letters of protection; requires trier of fact to consider fault of certain persons contributing to an injury; provides party in negligence action who is at fault by specified amount may not recover damages under comparative negligence action; repeals provisions relating to awards of attorney fees.

Effective date: July 1, 2023

Status: 3/24/2023 Approved by Governor
3/27/2023 Chapter No. 2023-15

CS/HB 955/CS/SB 242: Fiscal Accountability

CS/HB 955 by Constitutional Rights, Rule of Law & Government Operations Subcommittee, Rep. Jenna Persons-Mulicka (Co-introducer: Rep. Rick Roth)
Referred to Constitutional Rights, Rule of Law & Government Operations Subcommittee; State Administration & Technology Appropriations Subcommittee; State Affairs

Requires state entities to include any documents submitted which indicate use of state funds as remuneration under certain contracts, beginning on specified date; removes provision requiring state entities to publish payments on specified website; requires that contracts for services executed, amended, or extended beginning on specified date require contractors to provide specified documentation to be included in state contracting system & posted to contractor's website, if applicable.

Effective date: July 1, 2023

Status: 5/2/2023 House – Laid on Table, refer to CS/SB 242

CS/SB 242: Governmental Oversight and Accountability, Sen. Ileana Garcia
Referred to Governmental Oversight and Accountability; Appropriations

Requiring state entities to include any documents submitted which indicate the use of state funds as remuneration under certain contracts, beginning on a specified date; deleting a provision requiring state entities to publish payments on a specified website; requiring that contracts for services executed, amended, or extended beginning on a specified date require contractors to provide specified documentation to be included in the state contracting system and posted to the contractor’s website, if applicable, etc.

Effective date: July 1, 2023

Status: 5/3/2023 Senate – Ordered enrolled

DOR TIPs

Since the last issue of Advocacy Update, the Florida Department of Revenue has published these helpful Tax Information Publications (TIPS). For the full list of 2023 TIPs, click here.

Current Interest Rate

May 3, 2023

Floating Rate of Interest is 11 Percent for the Period July 1, 2023 Through December 31, 2023

Florida law provides for a floating rate of interest on deficiencies (underpayments), late payments, and overpayments of most taxes and fees based on the adjusted prime interest rate charged by banks. The taxes and fees to which the floating rate of interest applies are listed at the end of this document.

Read the full TIP here.

Contribute

The Florida CPA/PAC supports the politicians who stand up for CPAs. We back the candidates and incumbents who will ensure CPAs and their clients are included in the legislative process. It is your voluntary contributions that help protect the CPA license.

Donate Now

Please note: Contributions are strictly voluntary and are not deductible for federal tax purposes. The Florida CPA/PAC is an entity completely separate from the FICPA. The Florida CPA/PAC is supported solely by the voluntary contributions of members of the FICPA and others.

Topics

Legislative Update

Internal Revenue Service

NASBA

Changes to CPA Exam window: What you need to know

133345 — Tue, 25 Apr 2023 15:29:24 +0000

Changes to CPA Exam window: What you need to know

By FICPA Staff

133345 Tue, 04/25/2023 - 11:29

April 25, 2023

On Monday, the National Association of State Boards of Accountancy (NASBA) “announced the adoption of an amendment to the Uniform Accountancy Act Model Rules pertaining to the Uniform CPA Examination (Exam).”

In part, NASBA’s amendment recommends that state Boards of Accountancy extend the window for passing the CPA Exam to 30 months. Next, the Florida Board of Accountancy (BOA) will decide whether to extend our state’s window accordingly. It is important to note that until the Florida BOA determines its position on NASBA’s recommendations, there are no permanent changes in place to the current 18-month exam window in Florida.

The FICPA will continue to monitor the situation and communicate any and all changes that students, candidates and educators need to know.

Topics

NASBA

NASBA announces CPA Exam transition policy for 2024

133345 — Mon, 28 Feb 2022 21:33:15 +0000

NASBA announces CPA Exam transition policy for 2024 133345 Mon, 02/28/2022 - 16:33

February 25, 2022

The new CPA Exam is coming our way in 2024, and we have new details to share!

On Friday, NASBA publicized the official transition policy for CPA candidates who have completed one or more but not all four parts of the exam by Dec. 31, 2023.

On Jan. 1, 2024, CPA candidates with outstanding sections to pass will take the new corresponding sections shown below. (Note: The 18-month rule remains in effect for all sections on the current and 2024 CPA Exam.)

Simply put: If you have not passed AUD, FAR or REG on the current CPA Exam, you will need to take the corresponding new core section of AUD, FAR or REG on the 2024 CPA Exam. If you have not passed BEC on the current CPA exam, you will need to take ANY of the three discipline sections. (Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), Tax Compliance and Planning (TCP).

Additional details on the transition and an FAQ guide are linked below.

The FICPA does not anticipate any licensure changes concerning education or experience for the state of Florida.

Please contact FICPA's Academic & Student Initiatives Manager, Megan Altizer, at [email protected]">[email protected] or at (850) 521-5948 with any additional questions.

Topics

NASBA

CPA Evolution

CPA Evolution will impact today’s interns; how can firms prepare?

133345 — Tue, 08 Feb 2022 20:19:36 +0000

CPA Evolution will impact today’s interns; how can firms prepare? 133345 Tue, 02/08/2022 - 15:19

February 8, 2022

For the past few years, the American Institute of CPAs (AICPA) and the National Association of State Boards of Accountancy (NASBA) have collaborated with stakeholders to reimagine CPA licensure through the joint CPA Evolution initiative, an effort to transform the CPA licensure model. The organizations have now reached the critical implementation phase of this initiative, which addresses the rapidly changing skills and competencies required of a 21st Century CPA.

Many of the students slated for Spring and Summer 2022 internships will sit for the new, CPA Evolution-aligned CPA Exam, which is expected to launch in early 2024. This has implications for firms in a variety of areas, from recruiting considerations to engagement with academia. The time to start plotting out your firm’s strategy is now.

CPA Evolution will bring about some of the most substantive changes to licensure in decades, including a new Core + Disciplines licensure model, increased coverage in areas like information systems and data analytics, and the addition of personal financial planning.

But what does it all mean for your firm? Here are some top considerations to aid your hiring and recruitment strategies.

Students are more interested in pursuing CPA under the new licensure model

In a Fall 2021 AICPA-NASBA survey of accounting students, 85% of respondents indicated the new approach to licensure either increases their interest in pursuing CPA or keeps their interest at a very high level. In discussion groups with students, common themes surrounded their heightened interest in areas like data analytics, cybersecurity and information privacy, all of which are expected to be addressed in the new CPA Exam based upon preliminary practice analysis research.

This may represent an opportunity for firms when recruiting new staff. In addition to highlighting the earnings power of CPAs and the impact they can have on society, consider discussing the impending changes to the licensure model and how they reflect the exciting work firms are doing in emerging areas. For students interested in technology, there has never been a better time to pursue CPA.

Universities are changing their curricula to incorporate emerging topics

In another Fall 2021 pulse survey, the AICPA and NASBA asked accounting faculty about their plans relative to CPA Evolution. Here’s what they heard:

88% of respondents indicated their accounting program will be making curriculum changes based on CPA Evolution
81% said they expect to make curricular changes by Fall 2022

To inform hiring decisions, firms may want to reach out to the universities they recruit from to determine what, if any, curriculum changes are being made. Practitioners may also consider aiding the academic community in the transition, as nearly half of the faculty that won’t be making curriculum changes cited challenges in finding qualified personnel to teach emerging topics. Subject matter experts at your firm might consider serving as guest lecturers or adjunct professors to ensure the next generation of CPAs has the skills and competencies they need to be successful.

Many accounting program graduates will have different skillsets

As academic programs evolve, students are expected to pursue learning tracks aligned with their interests. In a 2020 AICPA-NASBA survey of students,

54% of respondents indicated they plan to pursue the Business Analysis and Reporting discipline,
24% plan to pursue Information Systems and Controls, and
22% plan to take Tax Compliance and Planning.

To pass these disciplines, students will need more knowledge and skills in the related subject matter, and firms will be the beneficiaries. In fact, in an April 2021 AICPA-NASBA survey of firm hiring directors, 83% of respondents from firms with 11 or more personnel indicated that if accounting programs were aligned with CPA Evolution, their hiring of new graduates from accounting programs would likely increase, accounting program graduates would be considered more valuable than they are today, or both.

Firm leaders may want to engage with the firm’s HR team to consider how CPA Evolution will impact their approach to talent acquisition moving forward.

Next steps

The AICPA is currently conducting a practice analysis to determine the knowledge and skills required of newly licensed CPAs that should be assessed in the CPA Evolution aligned Exam. An associated CPA Exam Blueprint, which will detail content eligible for testing in each of the Core and Discipline sections, is expected to be issued for public comment in mid-2022 and published in final form in early 2023, with the launch of the new CPA Exam planned for January 2024.

As CPA Evolution continues to progress, please check back for updates at EvolutionofCPA.org. If you have any questions, please reach out to the AICPA and NASBA at [email protected]">[email protected].

Topics

AICPA

CPA Evolution

NASBA