BILL NUMBER: SB 133 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JULY 19, 2001
AMENDED IN ASSEMBLY JULY 3, 2001
AMENDED IN SENATE MAY 31, 2001
AMENDED IN SENATE MAY 23, 2001
AMENDED IN SENATE MAY 3, 2001
AMENDED IN SENATE APRIL 25, 2001
INTRODUCED BY Senator Figueroa
(Coauthors: Senators Johannessen and Polanco)
(Coauthors: Assembly Members Aanestad, Correa, and Thomson)
JANUARY 29, 2001
An act to amend Sections 5000, 5015.6, 5020, 5081, 5082, 5082.1,
5082.3, 5082.4, 5087, 5088, and 5134 of, to amend and repeal Sections
5081.1, 5082.2, 5083, and 5084 of, and to add Sections 5076, 5082.5,
5090, 5091, 5092, 5093, 5094, and 5095 to, the Business and
Professions Code, relating to accountants, and making an
appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
SB 133, as amended, Figueroa. Accountants.
(1) Existing law provides for the licensing and regulation of
accountants by the State Board of Accountancy in the Department of
Consumer Affairs. The provisions creating the board and authorizing
the board to appoint an executive officer will become inoperative on
July 1, 2002, and will be repealed on January 1, 2003.
This bill would extend these dates, making the provisions
inoperative on July 1, 2006, and repealing them on January 1, 2007.
The bill would increase the total membership of the board and would
also alter the composition of the board.
(2) Existing law authorizes the board to conduct investigations or
hearings relating to any matter involving the conduct of licensees.
Existing law authorizes the board to appoint an administrative
committee for the purpose of obtaining technical expertise.
This bill would provide that the executive officer would determine
when to engage in these activities. The bill would also revise the
required composition of the administrative committee.
(3) Existing law requires that an applicant for the certified
public accountants' examination meet specified educational
requirements and that an `applicant for licensure as a certified
public accountant meet certain educational and experience
requirements.
This bill would revise these provisions relating to educational
and experience requirements.
(4) Under existing law, a certified public accountant license
candidate is required to pass a written examination. Existing law
provides that a candidate who passes 2 or more subjects but fails the
examination has the right to be reexamined in only the remaining
subjects.
This bill would revise the provisions relating to the examination
process and examination requirements.
(5) Existing law requires that an applicant for a certified public
accountant license be over 18 years of age, and prohibits the board
from giving a license to an applicant with a certified public
accountant license from another state who is not over 18 years of
age.
This bill would delete this age requirement.
(6) Existing law requires an applicant for licensure as a
certified public accountant to demonstrate experience in the attest
function.
This bill would require a firm, other than a sole proprietor or a
small firm, to meet specified peer review requirements in order to
provide attest services and would require an individual applicant to
meet specified criteria to sign reports on attest engagements. The
bill would require the board to adopt regulations implementing,
interpreting, and making specific these new application, examination,
education, and licensure requirements.
(7) Existing law provides that a person holding a valid and
unrevoked license from any state may practice public accountancy
after submitting an application for licensure and showing proof of
qualifying continuing education.
This bill would also authorize a qualified applicant to also
perform attest services.
(8) Existing law sets specified fees to be charged by the board
and requires that the board maintain a reserve balance in its
contingent fund equal to approximately 3 months of annual authorized
expenditures.
This bill would revise the fees to be charged by the board and
would require that the board maintain a reserve balance equal to
approximately 6 months of annual authorized expenditures.
This bill would make other related changes.
(9) Because this bill would increase fees deposited in the
Accounting Fund, a continuously appropriated fund, it would make an
appropriation.
(10) The bill shall only become operative if AB 585 is enacted and
becomes effective on or before January 1, 2002.
Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. It is the intent of the Legislature that the new
education and experience requirements for the certified public
accountant license established by this legislation not be revised or
amended prior to the next review of the California Board of
Accountancy required by Division 1.2 (commencing with Section 473) of
the Business and Professions Code.
Further, it is the intent of the Legislature that this review
shall be limited to issues related to implementation of the new
licensure requirements. In preparation for that review, the
California Board of Accountancy shall collect statistical information
including information on the number of applicants applying under
Sections 5092 and 5093 of the Business and Professions Code, the
number of applicants passing the examination under Sections 5092 and
5093 of the Business and Professions Code, the number of applicants
applying and qualifying for licensure under Sections 5092 and 5093 of
the Business and Professions Code, and the number of applicants and
licensees applying and qualifying for an authorization to sign
reports on attest engagements under Section 5095 of the Business and
Professions Code. Also, it is the intent of the Legislature that
prior to the next review required by Division 1.2 (commencing with
Section 473) of the Business and Professions Code, the California
Board of Accountancy develop regulations and procedures to implement
the peer review requirement mandated by Section 5076 of the Business
and Professions Code.
SEC. 2. Section 5000 of the Business and Professions Code is
amended to read:
5000. There is in the Department of Consumer Affairs the
California Board of Accountancy, which consists of 11 members, six of
whom shall be licensees, and five of whom shall be public members
who shall not be licentiates of the board or registered by the board.
The board has the powers and duties conferred by this chapter.
The Governor shall appoint three of the public members, and the
six licensee members as provided in this section. The Senate Rules
Committee and the Speaker of the Assembly shall each appoint a public
member. In appointing the six licensee members, the Governor shall
appoint members representing a cross section of the accounting
profession with at least two members representing a small public
accounting firm. For the purposes of this chapter, a small public
accounting firm shall be defined as a professional firm that employs
a total of no more than four licensees as partners, owners, or
full-time employees in the practice of public accountancy within the
State of California.
This section shall become inoperative on July 1, 2006, and as of
January 1, 2007, is repealed, unless a later enacted statute, that
becomes effective on or before January 1, 2007, deletes or extends
the dates on which this section becomes inoperative and is repealed.
The repeal of this section renders the board subject to the review
required by Division 1.2 (commencing with Section 473). However, the
review of the board shall be limited to only those issues identified
by the Joint Legislative Sunset Review Committee and the board
pursuant to implementation of new licensing requirements.
SEC. 3. Section 5015.6 of the Business and Professions Code is
amended to read:
5015.6. The board may appoint a person exempt from civil service
who shall be designated as an executive officer and who shall
exercise the powers and perform the duties delegated by the board and
vested in him or her by this chapter.
This section shall become inoperative on July 1, 2006, and, as of
January 1, 2007, is repealed, unless a later enacted statute, which
becomes effective on or before January 1, 2007, deletes or extends
the dates on which it becomes inoperative and is repealed.
SEC. 4. Section 5020 of the Business and Professions Code is
amended to read:
5020. The board may, for the purpose of obtaining technical
expertise, appoint an administrative committee of not more than 13
licensees to perform any of the following duties, and the committee
may be vested with the powers of the board for those purposes:
(a) To receive and investigate complaints and to conduct
investigations or hearings, with or without the filing of any
complaint, and to obtain information and evidence relating to any
matter involving the conduct of licensees, as directed by the board
or as directed by the executive officer pursuant to a delegation of
authority by the board.
(b) To receive and investigate complaints and to conduct
investigations or hearings, with or without the filing of any
complaint, and to obtain information and evidence relating to any
matter involving any violation or alleged violation of this chapter
by licensees, as directed by the board or as directed by the
executive officer pursuant to a delegation of authority by the board.
(c) In exercising the duties prescribed in this section, the
committee shall act only in an advisory capacity, shall have no
authority to initiate any disciplinary action against a licensee, and
shall only be authorized to report its findings from any
investigation or hearing conducted pursuant to this section to the
board, or upon direction of the board, to the executive officer.
SEC. 5. Section 5076 is added to the Business and Professions
Code, to read:
5076. (a) In order to renew its registration, a firm providing
attest services, other than a sole proprietor or a small firm as
defined in Section 5000, shall complete a peer review prior to the
first registration expiration date after January 1, 2006, and no less
frequently than every three years thereafter.
(b) For purposes of this article, the following definitions apply:
(1) "Peer review" means a study, appraisal, or review conducted in
accordance with professional standards of the professional work of a
licensee or registered firm by another licensee unaffiliated with
the licensee or registered firm being reviewed. The peer review
shall include, but not be limited to, a review of at least one attest
engagement representing the highest level of service performed by
the firm and may include an evaluation of other factors in accordance
with requirements specified by the board in regulations.
(2) "Attest services" include an audit, a review of financial
statements, or an examination of prospective financial information,
provided, however, "attest services" shall not include the issuance
of compiled financial statements.
(c) The board shall adopt regulations as necessary to implement,
interpret, and make specific the peer review requirements in this
section, including, but not limited to, regulations specifying the
requirements for the approval of peer review providers, and
regulations establishing a peer review oversight committee.
SEC. 6. Section 5081 of the Business and Professions Code is
amended to read:
5081. An applicant for admission to the examination for a
certified public accountant license shall:
(a) Not have committed acts or crimes constituting grounds for
denial of a license under Section 480.
(b) File the application for the examination. An application for
the examination shall not be considered filed unless all required
supporting documents, fees, and the fully completed board-approved
application form are received in the board office or filed by mail in
accordance with Section 11003 of the Government Code on or before
the specified final filing date.
(c) Meet one of the educational requirements specified in this
article.
SEC. 7. Section 5081.1 of the Business and Professions Code is
amended to read:
5081.1. Pursuant to subdivision (b) of Section 5090, an
applicant for admission to the examination for a certified public
accountant certificate may qualify for admission with one of the
following:
(a) The applicant shall present satisfactory evidence that the
applicant has either of the following:
(1) A baccalaureate degree from a university, college or other
four-year institution of learning accredited by a regional
institutional accrediting agency included in a list of these agencies
published by the United States Secretary of Education under the
requirements of, the Higher Education Act of 1965 as amended, (20
U.S.C. Sec. 1001 and following) with a major in accounting or related
subjects requiring a minimum of 45 semester units of instruction in
these subjects. If the applicant has received a baccalaureate degree
in a nonaccounting major, the applicant shall present satisfactory
evidence of study substantially the equivalent of an accounting
major, including courses in related business administration subjects.
(2) A degree or degrees from a college, university, or other
institution of learning located outside the United States that is
approved by the board as the equivalent of the baccalaureate degree
described in paragraph (1). The board may require an applicant under
this paragraph to submit documentation of his or her education to a
credentials evaluation service approved by the board for evaluation
and to cause the results of this evaluation to be reported to the
board. The board shall adopt regulations specifying the criteria and
procedures for approval of credential evaluation services. These
regulations shall, at a minimum, require that the credential
evaluation service (A) furnish evaluations directly to the board; (B)
furnish evaluations written in English; (C) be a member of the
American Association of Collegiate Registrars and Admission Officers,
the National Association of Foreign Student Affairs, or the National
Association of Credential Evaluation Services; (D) be used by
accredited colleges and universities; (E) be reevaluated by the board
every five years; (F) maintain a complete set of reference materials
as specified by the board; (G) base evaluations only upon authentic,
original transcripts and degrees and have a written procedure for
identifying fraudulent transcripts; (H) include in the evaluation
report, for each degree held by the applicant, the equivalent degree
offered in the United States, the date the degree was granted, the
institution granting the degree, an English translation of the course
titles, and the semester unit equivalence for each of the courses;
(I) have an appeal procedure for applicants; and (J) furnish the
board with information concerning the credential evaluation service
that includes biographical information on evaluators and translators,
three letters of references from public or private agencies,
statistical information on the number of applications processed
annually for the past five years, and any additional information the
board may require in order to ascertain that the credential
evaluation service meets the standards set forth in this paragraph
and in any regulations adopted by the board.
(b) The applicant shall present satisfactory evidence that the
applicant has successfully completed a two-year course of college
level study or received an associate of arts degree from a community
college, either institution accredited by a regional institutional
accrediting agency that is included in a list published by the United
States Secretary of Education under the provisions of federal law
specified in paragraph (1) of subdivision (a), and that the applicant
has completed a minimum of 120 semester units which includes the
study of accounting and related business administration subjects.
(c) The applicant shall show to the satisfaction of the board that
he or she has had the equivalent of the educational qualifications
required by subdivision (b), or shall pass a preliminary written
examination approved and administered by an agency approved by the
California State Department of Education and shall have completed a
minimum of 10 semester units or the equivalent in accounting
subjects. The 10 semester units in accounting subjects shall be
completed at a college, university, or other institution of higher
learning accredited at the college level by an agency or association
that is included in a list published by the United States Secretary
of Education under the federal law specified in paragraph (1) of
subdivision (a).
(d) The applicant shall be a public accountant registered under
this chapter.
(e) This section shall remain in effect only until January 1,
2006, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2006, deletes or extends
that date.
SEC. 8. Section 5082 of the Business and Professions Code is
amended to read:
5082. An applicant for a certified public accountant license
shall have successfully passed examinations in subjects the board
deems appropriate.
SEC. 9. Section 5082.1 of the Business and Professions Code is
amended to read:
5082.1. All examinations provided for herein shall be held by the
board at places circumstances may warrant, and as often as may be
necessary in the opinion of the board. The board may contract with
any organization, governmental or private, for examination material
or services. Within 90 days after the examination the board shall
notify each candidate of his or her score. All examination records
shall be preserved for a period of at least six months after the
notification of scoring and any candidate shall upon request to the
board have access to his or her records.
SEC. 10. Section 5082.2 of the Business and Professions Code is
amended to read:
5082.2. For candidates seeking to be reexamined pursuant to
subdivision (b) of Section 5090, a candidate who fails an examination
provided for herein shall have the right to any number of
reexaminations at subsequent examinations held by the board. A
candidate who passes an examination in two or more subjects shall
have the right to be reexamined in the remaining subject or subjects
only, at subsequent examinations held by the board, and if he or she
passes in the remaining subject or subjects within a period of time
specified in the rules of the board, he or she shall be considered to
have passed the examination.
This section shall remain in effect only until January 1, 2006,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2006, deletes or extends that date.
SEC. 11. Section 5082.3 of the Business and Professions Code is
amended to read:
5082.3. An applicant for a license as a certified public
accountant may be deemed by the board to have met the examination
requirements of Section 5082, 5092, or 5093 if the applicant
satisfies all of the following requirements:
(a) The applicant is licensed or has comparable authority under
the laws of any country to engage in the practice of public
accountancy.
(b) The International Qualifications Appraisal Board jointly
established by the National Association of State Boards of
Accountancy and the American Institute of Certified Public
Accountants has determined that the standards under which the
applicant was licensed or under which the applicant secured
comparable authority meet its standards for admission to the
International Uniform Certified Public Accountant Qualification
Examination.
(c) The applicant has successfully passed the International
Uniform Certified Public Accountant Qualification Examination
referenced in subdivision (b).
SEC. 12. Section 5082.4 of the Business and Professions Code is
amended to read:
5082.4. A Canadian Chartered Accountant in good standing may be
deemed by the board to have met the examination requirements of
Section 5082, 5092, or 5093 if he or she has successfully passed the
Canadian Chartered Accountant Uniform Certified Public Accountant
Qualification Examination of the American Institute of Certified
Public Accountants or the International Uniform Certified Public
Accountant Qualification Examination referenced in subdivision (b)
Section 5082.3.
SEC. 13. Section 5082.5 is added to the Business and Professions
Code, to read:
5082.5. The board may give credit to a candidate who has passed
all or part of the examination in another state or territory, if the
members of the board determine that the standards under which the
examination was held are as high as the standards established for the
examination in this chapter.
SEC. 14. Section 5083 of the Business and Professions Code is
amended to read:
5083. (a) Pursuant to subdivision (b) of Section 5090, an
individual applying for licensure shall meet, to the satisfaction of
the board, one of the following requirements:
(1) Four years of experience if the applicant qualified to sit for
the exam by meeting the requirements of subdivision (b) or (c) of
Section 5081.1.
(2) Three years of experience if the applicant qualified to sit
for the exam by meeting the requirements of subdivision (a) or (d) of
Section 5081.1 or meets the requirements of Section 5082.3.
(b) In order to be qualifying under this section, experience shall
have been performed in accordance with applicable professional
standards. Experience in public accounting may be qualifying if
completed by, or in the employ of, a person licensed or otherwise
having comparable authority under the laws of any state or country to
engage in the practice of public accountancy. Experience in private
or governmental accounting or auditing employment may be qualifying
provided that this work was performed under the direct supervision of
an individual licensed by a state to engage in the practice of
public accountancy.
(c) Qualifying experience for licensure includes providing any
type of service or advice involving the use of accounting, attest,
compilation, management advisory, financial advisory, tax, or
consulting skills.
(d) The board shall prescribe rules related to the experience
requirements set forth in this section, including a requirement that
each applicant demonstrate to the board satisfactory experience in
the attest function as it relates to financial statements. For
purposes of this subdivision, the attest function includes audit and
review of financial statements.
(e) This section shall remain in effect only until January 1,
2006, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2006, deletes or extends
that date.
SEC. 15. Section 5084 of the Business and Professions Code is
amended to read:
5084. For applicants seeking licensure pursuant to subdivision
(b) of Section 5090, the board shall grant one year's credit toward
fulfillment of its public accounting experience requirement to a
graduate of a college who has completed a four-year course with 45 or
more semester units or the equivalent thereof in the study of
accounting and related business administration subjects, of which at
least 20 semester units or the equivalent thereof shall be in the
study of accounting.
The members of the board shall prescribe rules establishing the
character and variety of experience necessary to fulfill the
experience requirements set forth in this section.
This section shall remain in effect only until January 1, 2006,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2006, deletes or extends that date.
SEC. 16. Section 5087 of the Business and Professions Code is
amended to read:
5087. (a) The board may issue a certified public accountant
license to any applicant who is a holder of a valid and unrevoked
certified public accountant license issued under the laws of any
state, if the board determines that the standards under which the
applicant received the license are substantially equivalent to the
standards of education, examination, and experience established under
this chapter and the applicant has not committed acts or crimes
constituting grounds for denial under Section 480. To be authorized
to sign reports on attest engagements, the applicant shall meet the
requirements of Section 5095.
(b) The board may in particular cases waive any of the
requirements regarding the circumstances in which the various parts
of the examination were to be passed for an applicant from another
state.
SEC. 17. Section 5088 of the Business and Professions Code is
amended to read:
5088. (a) Any person who is the holder of a valid and unrevoked
license as a certified public accountant issued under the laws of any
state and who applies to the board for a license as a certified
public accountant under the provisions of Section 5087 may, after
application for licensure and after providing evidence of qualifying
continuing education, perform the same public accounting services in
this state as a certified public accountant licensed under Section
5092 or 5093 until the time his or her application for a license is
granted or rejected.
(b) An applicant meeting the requirements of subdivision (a) who
certifies that he or she has met the requirements of Section 5095 may
perform attest services in this state until the time his or her
application for a license is granted or rejected.
SEC. 18. Section 5090 is added to the Business and Professions
Code, to read:
5090. (a) An applicant for the certified public accountant
license shall comply with the education, examination, and experience
requirements in either Section 5092 or 5093.
(b) Notwithstanding subdivision (a), an applicant who applied
and qualified for admission to , qualified,
and sat for at least two subjects of the examination for the
certified public accountant license before December 31, 2001, may
complete the examination and qualify for licensure based on the
requirements in Sections 5081.1, 5082, 5082.2, 5083, 5084, and
applicable regulations adopted by the board that were in effect on
December 31, 2001, or comparable examination requirements adopted by
the board in the event the form or format of the examination changes,
provided the applicant qualifies and applies for licensure
no later than before January 1, 2006.
SEC. 19. Section 5091 is added to the Business and Professions
Code, to read:
5091. At the time of application for the examination, the
applicant shall choose whether he or she is making the application
under Section 5092 or 5093. An applicant making application under
Section 5093 may change and apply under Section 5092 without having
to retake sections of the examination already passed provided those
sections were passed in accordance with the requirements of Section
5092.
SEC. 20. Section 5092 is added to the Business and Professions
Code, to read:
5092. (a) To qualify for the certified public accountant license,
an applicant who is applying under this section shall meet the
education, examination, and experience requirements in subdivisions
(b), (c), and (d) of this section. The board may adopt regulations
as necessary to implement this section.
(b) An applicant for the certified public accountant license shall
present satisfactory evidence that the applicant has completed a
baccalaureate or higher degree conferred by a college or university,
meeting, at a minimum, the standards described in Section 5094, the
total educational program to include a minimum of 24 semester units
in accounting subjects and 24 semester units in business related
subjects. This evidence shall be provided prior to admission to the
examination for the certified public accountant license , except
that an applicant who passed the examination before December 31,
2001, may provide this evidence at the time of application for
licensure provided the applicant applies and qualifies for licensure
before January 1, 2006 .
(c) An applicant for the certified public accountant license shall
pass an examination in accounting, auditing, and other subjects the
board deems appropriate. An applicant who fails this examination has
the right to reexamination. During the time this examination is a
written, paper and pencil examination, an applicant who passes two or
more subjects at any examination shall receive a conditional credit
for those subjects and does not need to sit for reexamination in
those subjects. The applicant shall have the right to be reexamined
in the remaining subject or subjects only at the six subsequent
consecutive examinations immediately following receipt of the
conditional credit. If the remaining subject or subjects are passed
during the six subsequent examinations, the candidate shall be
considered to have passed the examination.
The conditional credit period provided in this section may be
extended by the board upon a showing of extraordinary extenuating
circumstances which prevented the applicant from retaking the
examination during this period.
(d) The applicant shall show, to the satisfaction of the board,
that the applicant has had two years of qualifying experience. This
experience may include providing any type of service or advice
involving the use of accounting, attest, compilation, management
advisory, financial advisory, tax, or consulting skills. To be
qualifying under this section, experience shall have been performed
in accordance with applicable professional standards. Experience in
public accounting shall be completed under the supervision or in the
employ of a person licensed or otherwise having comparable authority
under the laws of any state or country to engage in the practice of
public accountancy. Experience in private or governmental accounting
or auditing shall be completed under the supervision of an
individual licensed by a state to engage in the practice of public
accountancy.
SEC. 21. Section 5093 is added to the Business and Professions
Code, to read:
5093. (a) To qualify for the certified public accountant license,
an applicant who is applying under this section shall meet the
education, examination, and experience requirements specified in
subdivisions (b), (c), and (d) of this section. The board may adopt
regulations as necessary to implement this section.
(b) (1) An applicant for admission to the certified public
accountant examination under the provisions of this section shall
present satisfactory evidence that the applicant has completed a
baccalaureate or higher degree conferred by a college or university,
meeting, at a minimum, the standards described in Section 5094, the
total educational program to include a minimum of 24 semester units
in accounting subjects and 24 semester units in business related
subjects. This evidence shall be provided at the time of application
for admission to the examination , except that an applicant who
passed the examination before December 31, 2001, may provide this
evidence at the time of application
for licensure provided the applicant applies and qualifies
for licensure before January 1, 2006 .
(2) An applicant for issuance of the certified public accountant
license under the provisions of this section shall present
satisfactory evidence that the applicant has completed at least 150
semester units of college education including a baccalaureate or
higher degree conferred by a college or university, meeting, at a
minimum, the standards described in Section 5094, the total
educational program to include a minimum of 24 semester units in
accounting subjects and 24 semester units in business related
subjects. This evidence shall be presented at the time of
application for the certified public accountant license.
(c) An applicant for the certified public accountant license shall
pass an examination in accounting, auditing, and other subjects the
board deems appropriate. An applicant who fails this examination has
the right to reexamination. During the time this examination is a
written, paper and pencil examination, the applicant shall pass the
examination in accordance with the requirements of paragraphs (1) and
(2) of this subdivision.
(1) If at a given sitting of the examination an applicant passes
two or more subjects, but does not pass all subjects, the applicant
shall be given conditional credit for those subjects and the
applicant does not need to sit for reexamination in those subjects,
provided that:
(A) At that sitting the applicant sat for all subjects for which
the applicant does not have credit.
(B) The applicant attained a minimum standardized score of 50 as
determined by the board on each subject taken at that sitting.
(2) In order to pass the examination pursuant to the conditional
credit described in paragraph (1), the applicant shall pass the
remaining subjects within six subsequent consecutive
examinations given after the one at which the first subjects were
passed provided that:
(A) At each subsequent sitting at which the applicant seeks to
pass any additional subjects, the applicant sits for all subjects for
which the applicant does not have credit.
(B) In order to receive credit for passing additional subjects in
any subsequent sitting, the applicant attains a minimum standardized
score of 50 as determined by the board on the subjects taken at that
sitting.
The conditional credit period provided in this section may be
extended by the board upon a showing of extraordinary extenuating
circumstances which prevented the applicant from retaking the
examination period.
(d) The applicant shall show, to the satisfaction of the board,
that the applicant has had one year of qualifying experience. This
experience may include providing any type of service or advice
involving the use of accounting, attest, compilation, management
advisory, financial advisory, tax or consulting skills. To be
qualifying under this section, experience shall have been performed
in accordance with applicable professional standards. Experience in
public accounting shall be completed under the supervision or in the
employ of a person licensed or otherwise having comparable authority
under the laws of any state or country to engage in the practice of
public accountancy. Experience in private or governmental accounting
or auditing shall be completed under the supervision of an
individual licensed by a state to engage in the practice of public
accountancy.
SEC. 22. Section 5094 is added to the Business and Professions
Code, to read:
5094. (a) In order for education to be qualifying, it shall meet
the standards described in subdivision (b) or (c) of this section.
(b) At a minimum, education must be from a university, college, or
other institution of learning accredited by a regional institutional
accrediting agency included in a list of these agencies published by
the United States Secretary of Education under the requirements of
the Higher Education Act of 1965 as amended (20 U.S.C. Sec. 1001 and
following).
(c) Education from a college, university, or other institution of
learning located outside the United States may be qualifying provided
it is deemed by the board to be equivalent to education obtained
under subdivision (b). The board may require an applicant to submit
documentation of his or her education to a credentials evaluation
service approved by the board for evaluation and to cause the results
of this evaluation to be reported to the board in order to assess
educational equivalency.
(d) The board shall adopt regulations specifying the criteria and
procedures for approval of credential evaluation services. These
regulations shall, at a minimum, require that the credential
evaluation service (1) furnish evaluations directly to the board
; , (2) furnish evaluations written in
English ; , (3) be a member of the
American Association of Collegiate Registrars and Admission Officers,
the National Association of Foreign Student Affairs, or the National
Association of Credential Evaluation Services ;
, (4) be used by accredited colleges and universities
; , (5) be reevaluated by the board
every five years ; , (6) maintain a
complete set of reference materials as specified by the board
; , (7) base evaluations only upon authentic,
original transcripts and degrees and have a written procedure for
identifying fraudulent transcripts ; ,
(8) include in the evaluation report, for each degree held by the
applicant, the equivalent degree offered in the United States, the
date the degree was granted, the institution granting the degree, an
English translation of the course titles, and the semester unit
equivalence for each of the courses ; ,
(9) have an appeal procedure for applicants ;
, and (10) furnish the board with information concerning
the credential evaluation service that includes biographical
information on evaluators and translators, three letters of
references from public or private agencies, statistical information
on the number of applications processed annually for the past five
years, and any additional information the board may require in order
to ascertain that the credential evaluation service meets the
standards set forth in this subdivision and in any regulations
adopted by the board.
SEC. 23. Section 5095 is added to the Business and Professions
Code, to read:
5095. (a) To be authorized to sign reports on attest engagements,
a licensee shall complete a minimum of 500 hours of experience,
satisfactory to the board, in attest services.
(b) To qualify under this section, attest experience shall have
been performed in accordance with applicable professional standards.
Experience in public accounting shall be completed under the
supervision or in the employ of a person licensed or otherwise having
comparable authority under the laws of any state or country to
engage in the practice of public accountancy and provide attest
services, and this experience shall be verified. Experience in
private or governmental accounting or auditing shall be completed
under the supervision of an individual licensed by a state to engage
in the practice of public accountancy and perform attest services,
and this experience shall be verified. An applicant may be required
to present work papers or other evidence substantiating that the
applicant has met the requirements of this section and any applicable
regulations.
(c) An individual who qualified for licensure by meeting the
requirements of Section 5083 shall be deemed to have satisfied the
requirements of this section.
(d) The board shall adopt regulations to implement this section,
including, but not limited to, a procedure for applicants under
Section 5092 or Section 5093 to qualify under this section.
SEC. 24. Section 5134 of the Business and Professions Code is
amended to read:
5134. The amount of fees prescribed by this chapter is as
follows:
(a) The fee to be charged to each applicant for the certified
public accountant examination shall be fixed by the board at an
amount to equal the actual cost to the board of the purchase or
development of the examination, plus the estimated cost to the board
of administering the examination and shall not exceed six hundred
dollars ($600). The board may charge a reexamination fee equal to
the actual cost to the board of the purchase or development of the
examination or any of its component parts, plus the estimated cost to
the board of administering the examination and not to exceed
seventy-five dollars ($75) for each part that is subject to
reexamination.
(b) The fee to be charged to out-of-state candidates for the
certified public accountant examination shall be fixed by the board
at an amount equal to the estimated cost to the board of
administering the examination and shall not exceed six hundred
dollars ($600) per candidate.
(c) The application fee to be charged to each applicant for
issuance of a certified public accountant certificate shall be fixed
by the board at an amount equal to the estimated administrative cost
to the board of processing and issuing the certificate and shall not
exceed two hundred fifty dollars ($250).
(d) The application fee to be charged to each applicant for
issuance of a certified public accountant certificate by waiver of
examination shall be fixed by the board at an amount equal to the
estimated administrative cost to the board of processing and issuing
the certificate and shall not exceed two hundred fifty dollars
($250).
(e) The fee to be charged to each applicant for registration as a
partnership or professional corporation shall be fixed by the board
at an amount equal to the estimated administrative cost to the board
of processing and issuing the registration and shall not exceed two
hundred fifty dollars ($250).
(f) The board shall fix the biennial renewal fee so that, together
with the estimated amount from revenue other than that generated by
subdivisions (a) to (e), inclusive, the reserve balance in the board'
s contingent fund shall be equal to approximately six months of
annual authorized expenditures. Any increase in the renewal fee made
after July 1, 1990, shall be effective upon a determination by the
board, by regulation adopted pursuant to subdivision (k), that
additional moneys are required to fund authorized expenditures other
than those specified in subdivisions (a) to (e), inclusive, and
maintain the board's contingent fund reserve balance equal to six
months of estimated annual authorized expenditures in the fiscal year
in which the expenditures will occur. The biennial fee for the
renewal of each of the permits to engage in the practice of public
accountancy specified in Section 5070 shall not exceed two hundred
fifty dollars ($250).
(g) The delinquency fee shall be 50 percent of the accrued renewal
fee.
(h) The initial permit fee is an amount equal to the renewal fee
in effect on the last regular renewal date before the date on which
the permit is issued, except that, if the permit is issued one year
or less before it will expire, then the initial permit fee is an
amount equal to 50 percent of the renewal fee in effect on the last
regular renewal date before the date on which the permit is issued.
The board may, by regulation, provide for the waiver or refund of the
initial permit fee where the permit is issued less than 45 days
before the date on which it will expire.
(i) The fee to be charged for the certification of documents
evidencing passage of the certified public accountant examination,
the certification of documents evidencing the grades received on the
certified public accountant examination, or the certification of
documents evidencing licensure shall be twenty-five dollars ($25).
(j) The actual and estimated costs referred to in this section
shall be calculated every two years using a survey of all costs
attributable to the applicable subdivision.
(k) Upon the effective date of this section the board shall fix
the fees in accordance with the limits of this section and, on and
after July 1, 1990, any increase in any fee fixed by the board shall
be pursuant to regulation duly adopted by the board in accordance
with the limits of this section.
(l) Fees collected pursuant to subdivisions (a) to (e),
inclusive, shall be fixed by the board in amounts necessary to
recover the actual costs of providing the service for which the fee
is assessed, as projected for the fiscal year commencing on the date
the fees become effective.
SEC. 25. This bill shall become operative only if Assembly Bill
585 is enacted and becomes effective on or before January 1, 2002.