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A 5598

Extends the effectiveness of certain provisions dealing with tax exemptions for rent regulated properties occupied by certain persons

2025 Regular Session Introduced by Nikki Lucas

Implements stricter CPA licensure paths in NJ, ending automatic reciprocity and requiring current state license, CPA exam, and defined experience with a 2025 grandfathering window.

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Bill Summary · A 5598

Summary — A5598 (Introduced May 5, 2025)

Title: Implements updated education, examination, reciprocity, and experience requirements for licensure in public accountancy

Main purpose

A5598 revises how individuals qualify for examination and licensure as certified public accountants (CPAs) in New Jersey and changes the State’s mobility/reciprocity rules for out‑of‑state licensees who practice in New Jersey. The bill clarifies educational pathways, replaces the “substantial equivalence” reciprocity standard, updates experience requirements, and preserves limited grandfathered practice privileges for certain out‑of‑state licensees through December 31, 2025.

Key provisions

  • Education and exam eligibility

    • Requires applicants to hold at least a baccalaureate (or equivalent) or to have completed 150 semester hours.
    • Specifies the degree or 150 hours must be from an institution accredited by a regional accrediting agency recognized by the New Jersey Commission on Higher Education.
    • Education must demonstrate a concentration in accounting (or equivalent) and related professional courses, as determined by Board regulation.
    • Committee amendments clarified requirements for sitting for the CPA examination vs. licensure.

  • Reciprocity / practice mobility

    • Removes “substantial equivalence” and the prior NASBA verification requirement as the automatic reciprocity standard.
    • New standard: an out‑of‑state applicant must hold a current, valid, unrevoked license in another U.S. jurisdiction; have passed the Uniform CPA Examination (or another board‑approved exam); and meet the one‑year experience requirement in existing law.
    • Grandfather clause: an individual who held a valid license in another state before December 31, 2025, and who had practice privileges in New Jersey as of that date may continue to exercise all New Jersey CPA privileges without obtaining a New Jersey license, notifying the board, or paying a fee.

  • Experience and exam waivers

    • The bill clarifies which applicants must complete two years of certain experience versus one year, and revises when examination waivers may apply (text delegates specific determinations to the Board).

Who is affected

  • Aspiring CPAs (New Jersey residents and exam candidates) — clarifies education/exam pathways.
  • Out‑of‑state CPAs practicing in New Jersey — changes mobility/reciprocity rules and creates a limited grandfathering window through 12/31/2025.
  • New Jersey State Board of Accountancy and Department of Law & Public Safety — regulatory and enforcement responsibilities increase.

Fiscal and operational impact

  • Office of Legislative Services (OLS) estimates annual State revenue and expenditure impacts as indeterminate.
    • Potential increase in new licensees (and fee revenue) from clarified education paths.
    • Possible revenue decreases if some out‑of‑state CPAs choose not to renew NJ licenses.
    • Board operating costs may increase to regulate additional interstate practitioners and new licensees.
  • Fee examples cited in the fiscal note (per N.J.A.C. 13:29): CPA application fee $75; initial/triennial license fee for CPAs $135. (Fiscal note contains additional fee categories.)

Legislative status and timeline

  • Introduced in the Assembly: May 5, 2025 (sponsor: Assemblywoman Nikki Lucas).
  • Assembly Regulated Professions Committee reported with amendments: May 15, 2025.
  • Passed Assembly: May 22, 2025 (78–0–0).
  • Received in Senate and referred to Senate Commerce Committee: May 29, 2025.
  • Reported by Senate Commerce Committee: June 12, 2025.
  • Reported by Senate Budget & Appropriations Committee: November 13, 2025.
  • Companion bills: S4493, S5547; prior-session related bills A10141/A10142.

Notes

  • The bill delegates specific content and some standards to Board regulation (e.g., the precise course composition demonstrating concentration in accounting).
  • The OLS fiscal estimate cites uncertainty due to limited data on out‑of‑state licensees practicing in New Jersey and the behavior of multi‑state licensees.

Compiled from official sources — confirm details with the bill’s official record.

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