Effective May 24 - Amendments to Tennessee Accountancy Rules and Regulations

May 7, 2018

Amendments made to the Tennessee Accountancy Rules and Regulations last year by the Tennessee State Board of Accountancy will go into effect May 24, 2018. These changes will affect accountants and accounting firms, as well as those involved with Peer Review.

These amendments to the Tennessee Accountancy Rules and Regulations are as follows:

Tenn. Comp. R. & Regs. § 0020-01-.01 changes the definitions of “License” and “Expired License.”

Rule 0020-01-.01 (1 )(h) Definitions is amended by deleting the phrase "one year'' and substituting instead the phrase "six months" so that as amended, the subparagraph shall read:

(h) "Expired License" means a license that is more than six months past the expiration date of the license;

Rule 0020-01-.01 (1 )U) is amended by deleting the subparagraph and substituting instead the following:

(j) "License" means a certificate issued under T.C.A. § 62-1-107, a permit issued under T.C.A. § 62- 1-108, or a registration under T.C.A. § 62-1-109, or, in each case, a certificate, license, or permit issued under corresponding provisions of prior law;

Tenn. Comp. R. & Regs. § 0020-05-.04 changes the time period for which certain Continuing Professional Education Programs (CPE) courses will be accepted by the Board for credit.

Rule 0020-05-.04 Qualifying Programs is amended by deleting the rule in its entirety and substituting the rule with the following language so that as amended the rule shall read:

(1) In order to qualify for credit toward satisfaction of the requirements of rule 0020-05-.03, a continuing education program must:

(a) Be a program of learning which contributes directly to the professional competence of the licensee; and
(b) Meet the Statements on Standards for Continuing Professional Education Programs jointly approved by NASBA and AICPA.

(2) Programs requiring attendance may be considered for credit if:

(a) An outline is prepared and preserved;
(b) The program is at least one (1) credit hour [one (1) credit hour= fifty (50) minute period];
(c) The program is conducted by a qualified instructor, discussion leader, or lecturer; and
(d) A record of registration or attendance is maintained.

(3) Subject to compliance with paragraphs 1 and 2 of this rule, the following are deemed to be qualifying programs:

(a) Professional development programs of the AICPA, and state accounting societies and their chapters;
(b) Technical sessions at meetings of the AICPA, NASBA, and state accounting societies and their chapters;
(c) University or college courses provided that:

1. For credit courses, each semester hour credit shall equal fifteen (15) continuing education credit hours, and each quarter hour credit shall equal (10) continuing education credit hours;
2. For non-credit short courses, continuing education credit shall equal actual time in class;

(d) Organized in-firm or in-house (includes any company that gives training for their employees and others) educational programs presented for employees and others without charge; and
(e) Programs of other organizations (accounting, industrial, professional, etc.) recognized by the Board.

(4) Formal correspondence or other individual study programs, including those administered via computer, which require registration and provide evidence of satisfactory completion, may qualify for continuing education credit. The number of credit hours of continuing education will be determined by the Board. Such programs taken after January 1, 1999, excluding those offered by the AICPA and state CPA societies, must be approved by the Board or its designee, NASBA's Quality Assurance Program.

(5) Continuing education credit will be allowed for service as an instructor, discussion leader or speaker at any program for which participants are eligible to receive continuing education credit. Credit for such service will be awarded on the first presentation only, unless a program has been substantially revised. The amount of credit awarded shall not exceed three times the number of class hours; provided however, credit hours awarded under this paragraph shall not exceed fifty percent (50%) of the total number of credit hours required by this chapter within any two-year period. A licensee who receives credit for services as an instructor, discussion leader, or speaker of a CPE course cannot also receive credit for attendance at the same or substantially same course that the licensee served as an instructor, discussion leader, or speaker within the preceding twelve month period.

(6) In the board's discretion, continuing education credit may be allowed for writing articles and books, provided that their preparation contributes to the professional competence of the license holder. Credit for such preparation may be awarded on a self-declaration basis of up to fifty percent (50%) of the two (2) year continuing education requirement. Additional credit may be awarded in exceptional circumstances, upon the written request of the license holder, accompanied by a copy of the article(s) or books(s) and a statement of justification. No credit shall be given for unpublished book(s) or article(s).

(7) Continuing education credit may be allowed for the reading of professional journals and the taking of an examination related thereto. Credit hours obtained under this paragraph are limited to twenty percent (20%) of the total number of credit hours required by this chapter within any two (2)-year period and may not be used to meet the requirements of subparagraphs (1 )(a), (b) and (c) of Rule 0020-05-.03.

(8) CPE credit may be allowed for the successful completion of exams for Certified Management Accountant (CMA), Certified Information Systems Auditor (CISA), as well as other similar exams approved by the Board. Credit will be awarded at a rate of five (5) times the length of each exam taken and limited to fifty percent (50%) of the total CPE required under Rule 0020-05-.03.

(9) To receive credit, any program of continuing education not specifically covered by this rule must be approved by the Board before completion of the course. A licensee, once per reporting period, may submit for approval up to sixteen (16) hours of CPE from courses that are sponsored by organizations that are not registered with NASBA, and are either offered on a limited basis or industry specific. A licensee will not receive credit for attending/completing a program that was not timely approved by the Board in accordance with Rule 0020-05-.04(9).

(10) The Board specifically reserves the right to approve or disapprove credit for all continuing education claimed under this rule.

A copy of the rule filing is available for review on the website of the Secretary of State at

Tenn. Comp. R. & Regs. 0020-06-.07 was drafted in response to a request from the Tennessee State Board of Accountancy (“Board”) to promulgate requirements for peer review submission procedures mandated by Tennessee Code Annotated § 62-1-201, et seq. 2016 Public Chapter 595. Changes to Chapter 0020-06: Peer Review Program include adding a requirement that licensees and approved peer review programs grant the Board access to online peer review portals/databases upon which peer review documents are uploaded. The changes also include adding a deadline in which to produce or make available certain peer review documents for the Board’s review.

A copy of the rule filing is available for review on the website of the Secretary of State at http://publications.tnsosfiles.com/rules_filings/02-24-18.pdf

These rules will become effective May 24, 2018.

If you have any questions or concerns about these new rules, please contact Elizabeth Goldstein at Elizabeth.Goldstein@tn.gov or 615-741-3072.