BILL NUMBER: AB 2473 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 1, 2008
INTRODUCED BY Assembly Members Niello and Ma
FEBRUARY 21, 2008
An act to amend Sections 5035.3, 5050, 5050.2, 5088, 5096, 5096.2,
5096.3, 5096.4, 5096.6, 5096.7, 5096.10, 5096.12, 5109, 5116.6, and
5134 of, to amend and repeal Section 5092 of, to repeal Sections
5054, 5096.1, 5096.5, 5096.11, 5096.14, and
5096.15 of, and to repeal and add Section
Sections 5096.1 and 5096.13 of, the Business and Professions
Code, relating to accountancy.
LEGISLATIVE COUNSEL'S DIGEST
AB 2473, as amended, Niello. Accountancy: licensure.
Existing law provides for the licensure and regulation of
accountants by the California Board of Accountancy in the Department
of Consumer Affairs. Existing law prohibits a person from engaging in
the practice of public accountancy in this state unless he or she
holds either a valid permit issued by the board or a practice
privilege, which the board may, until January 1, 2011, issue to an
accountant licensed in another state who meets specified
requirements, and a violation of this provision is a crime. Existing
law exempts from the prohibition the temporary practice of
accountancy in California incident to practice in another state or
foreign country in which a person is licensed or authorized to
practice accountancy, as specified, and the filing of specified tax
returns by an accountant licensed in another state.
This bill would repeal on January 1, 2012, the provisions
governing education, examination, and experience requirements for
licensure as a certified public accountant. The bill would delete the
exception from the practice prohibition for practice incidental to
lawful practice in another state and for the filing of the tax
returns by a licensee of another state, and would revise the
exception from the practice prohibition for practice incidental to
lawful practice in a foreign country by imposing additional
requirements in order for that exception to apply.
This bill would delete the practice privilege provisions for out
of state accountants, including related fees, and would instead
authorize an individual who has a valid and current license,
certificate, or permit to practice public accountancy from another
state and who meets specified requirements to engage in the
cross-border practice of accountancy in this state without obtaining
a certificate or license, subject to specified conditions and
limitations. The bill would authorize an accounting firm or sole
proprietor that performs nonattest services for entities
headquartered in this state to engage in the practice of public
accountancy in this state without a firm registration, and would
authorize an accounting firm or sole proprietor that performs attest
services for entities headquartered in this state to engage in the
practice of accountancy through an alternative firm registration,
subject to certain conditions. The bill would authorize
provide for automatic suspension or revocation of the
cross-border practice authorization in certain circumstances, and
would require the board to revoke or suspend the above
authorizations to practice, cross-border practice
authorization if the board or its executive officer makes certain
findings and authorize the board to take
disciplinary action, as specified.
Because this bill would delete or revise certain exceptions to the
accountancy licensing provisions, the violation of which are a
crime, it would impose a state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 5035.3 of the Business and Professions Code is
amended to read:
5035.3. For purposes of Sections 5050.2, 5096.12, and 5096.13,
"firm" includes any entity that is authorized or permitted to
practice public accountancy as a firm under the laws of another state
or country.
SEC. 2. Section 5050 of the Business and Professions Code is
amended to read:
5050. Except as provided in Section 5050.2, no person shall
engage in the practice of public accountancy in this state unless the
person is the holder of a valid permit to practice public
accountancy issued by the board or practicing in this state under
cross-border practice pursuant to Article 5.1 (commencing with
Section 5096).
SEC. 3. Section 5050.2 of the Business and Professions Code is
amended to read:
5050.2. (a) Nothing in this chapter shall prohibit a person or
firm that holds a valid and current license, registration,
certificate, permit, or other authority to practice public
accountancy from a foreign country, and lawfully practicing therein,
from temporarily engaging in the practice of public accountancy in
this state incident to an engagement in that country, provided that
the individual or firm:
(1) Is regulated by the foreign country and is performing the
temporary practice in this state under accounting or auditing
standards of that country.
(2) Does not represent or hold himself, herself, or itself out as
being the holder of a valid California permit to practice public
accountancy.
(3) Is authorized to practice in another country and does not have
an office in this state.
(4) Shall be deemed to consent to the personal, subject matter,
and disciplinary jurisdiction of the board with respect to any
practice under this section.
(5) Shall cooperate with any board investigation or inquiry and
shall timely respond to a board investigation, inquiry, request,
notice, demand, or subpoena for information or documents and timely
provide to the board the identified information and documents.
(6) Shall not perform any services in this state that the
individual or firm is not legally authorized to perform in the
country of principal place of business.
(b) The board may issue a fine pursuant to Article 6.5 (commencing
with Section 5116), or revoke, suspend, or otherwise restrict the
right to practice in this state or otherwise discipline a person with
a license, registration, certificate, permit, or other authority to
practice public accountancy from a foreign country for any act that
would be a violation of this code or ,
grounds for discipline against a licensee, or grounds for denial of a
license under this code. The provisions of the Administrative
Procedure Act, including, but not limited to, the commencement of a
disciplinary proceeding by the filing of an accusation by the board
shall apply to this section. Any person whose authorization to
practice has been revoked under this section may apply for
reinstatement of the authorization to practice not less than one year
after the effective date of the board's decision revoking the
authorization to practice unless a longer time, not to exceed three
years, is specified in the board's decision revoking the
authorization to practice.
(c) The board may administratively suspend the authorization of
any person to practice under this section for any act that would be
grounds for administrative suspension under Section 5096.4 utilizing
the procedures set forth in that section.
SEC. 4. Section 5054 of the Business and Professions Code is
repealed.
SEC. 5. Section 5088 of the Business and Professions Code is
amended to read:
5088. Any individual who is the holder of a current and valid
license, certificate, or permit 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, until the time the application for a license is
granted or denied, practice public accountancy in this state only
under the cross-border practice provisions of Article 5.1 (commencing
with Section 5096), except that, for purposes of this section, the
individual is not disqualified from cross-border practice during the
period the application is pending by virtue of maintaining an office
or principal place of business, or both, in this state.
SEC. 6. Section 5092 of the Business and Professions Code is
amended 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 specified in
subdivisions (b), (c), and (d), or otherwise prescribed pursuant to
this article. 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 applied, qualified, and sat for at least two
subjects of the examination for the certified public accountant
license before May 15, 2002, may provide this evidence at the time of
application for licensure.
(c) An applicant for the certified public accountant license shall
pass an examination prescribed by the board pursuant to this
article.
(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.
(e) This section shall remain in effect only until January 1,
2012, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2012, deletes or extends
that date.
SEC. 7. Section 5096 of the Business and Professions Code is
amended to read:
5096. (a) An individual whose principal place of business is not
in this state and who has a valid and current license, certificate,
or permit to practice public accountancy from another state may,
subject to the conditions and limitations in this article, engage in
the practice of public accountancy in this state under cross-border
practice without obtaining a certificate or license under this
chapter if the individual satisfies one of the following:
(1) The individual has continually practiced public accountancy as
a certified public accountant under a valid license, certificate, or
permit issued by any state for at least four of the last 10 years.
(2) The individual has a license, certificate, or permit from a
state that has been determined by the board to have education,
examination, and experience qualifications for licensure
substantially equivalent to this state's qualifications under Section
5093.
(3) The individual possesses education, examination, and
experience qualifications for licensure that are substantially
equivalent to this state's qualifications under Section 5093.
(b) The board may designate states as substantially equivalent
under paragraph (2) of subdivision (a) and may accept individual
qualification evaluations or appraisals conducted by designated
entities, as satisfying the requirements of paragraph (3) of
subdivision (a).
(c) An individual who practices under cross-border practice in
this state:
(1) Is subject to the personal and subject matter jurisdiction and
disciplinary authority of the board and the courts of this state.
(2) Shall comply with the provisions of this chapter, board
regulations, and other laws, regulations, and professional standards
applicable to the practice of public accountancy by the licensees of
this state and to any other laws and regulations applicable to
individuals practicing under cross-border practice in this state,
except the individual is deemed, solely for the purpose of this
article, to have met the continuing education requirements
and ethics examination requirements of this state when the
individual has met the continuing education requirements of the state
in which the individual holds the valid license, certificate, or
permit as provided in subdivision (a).
(3) Shall not provide public accountancy services in this state
from any office located in this state, except as an employee of a
firm registered in this state. This paragraph does not apply to
public accountancy services provided to a client at the client's
place of business or residence.
(4) Is deemed to have appointed the regulatory agency of each
state in which he or she holds a certificate, license, or permit as
the individual's agent on whom notices, subpoenas or other process
may be served in any action or proceeding by the board against the
individual.
(5) Shall cooperate with any board investigation or inquiry and
shall timely respond to a board investigation, inquiry, request,
notice, demand or subpoena for information or documents and timely
provide to the board the identified information and documents.
(6) Shall not perform any services in this state under
cross-border practice that he or she is not legally authorized to
perform in his or her state of principal place of business.
(d) (1) No individual may practice under cross-border practice
without prior approval of the board if the individual has any
disqualifying condition under paragraph (2) of this subdivision.
(2) Disqualifying conditions include:
(A) Conviction of any crime other than a minor traffic violation.
(B) Revocation, suspension, denial, surrender or other discipline
or sanctions involving any license, permit, registration, certificate
or other authority to practice any profession in this or any other
state or foreign country or to practice before any state, federal, or
local court or agency, or the Public Company Accounting Oversight
Board.
(C) Pendency of any investigation, inquiry or proceeding by or
before any state, federal or local court or agency, including, but
not limited to, the Public Company Accounting Oversight Board,
involving the professional conduct of the individual.
(D) Any judgment or arbitration award against the individual
involving the professional conduct of the individual in the amount of
thirty thousand dollars ($30,000) or greater within the last 10
years.
(E) Any other conditions as specified by the board in regulation.
(3) The board may adopt regulations exempting specified minor
occurrences of the conditions listed in subparagraph (B) of paragraph
(2) from being disqualifying conditions under this subdivision.
(4) In no event may the board approve an applicant for
cross-border practice if he or she, within the 12 months preceding
the filing of his or her application, has been the subject of a final
order of conviction of any felonies specified in subdivision (b) of
Section 5096.1 or designated by board regulations pursuant to
subdivision (e) of Section 5096.1.
(e) An individual who acquires any disqualifying condition
described in paragraph (2) of subdivision (d) while practicing under
cross-border practice in this state shall immediately notify the
board in writing of the nature and details of the disqualifying
condition.
SEC. 8. Section 5096.1 of the Business and Professions Code is
repealed.
SEC. 9. Section 5096.1 is added to the
Business and Professions Code , to read:
5096.1. (a) The right of an individual to engage in cross-border
practice without prior approval of the board is a privilege that,
among other things, is conditioned on both of the following:
(1) The existence of legal authorization to perform professional
services as a certified public accountant from the state in which his
or her principal place of business is located.
(2) The absence of any disqualifying conditions listed in
subdivision (d) of Section 5096 or specified in regulations adopted
by the board.
(b) In order to protect the paramount interests of the public and
the consumers of the State of California, the Legislature finds that
if an individual fails to meet certain conditions, he or she shall be
considered conclusively disqualified from engaging in cross-border
practice. In addition, an immediate forfeiture of the individual's
privilege to engage in cross-border practice shall occur as a matter
of law when any of the following conditions exist, and no hearing
shall be held nor shall the board have any discretion regarding
whether or not to terminate the individual's cross-border practice:
(1) The individual's legal authorization to perform professional
services as a certified public accountant is revoked, canceled,
suspended, or otherwise terminated by the state in which his or her
principal place of business is located. A certified copy of the
order, decision, or judgment revoking, canceling, suspending, or
otherwise terminating the legal authorization of the individual to
perform professional services as a certified public accountant by the
tribunal, court, or agency in the state of his or her principal
place of business shall be conclusive proof of the fact that the
individual no longer has authorization to provide professional
services in that state.
(2) The individual is convicted of any of the following felonies:
(A) Murder.
(B) Robbery.
(C) Grand theft.
(D) Embezzlement.
After receiving a certified copy of the record of conviction, the
board shall suspend the individual's cross-border practice
privileges. After the judgment of conviction has become final, either
because the time for appeal has elapsed or the judgment of
conviction has been affirmed or has otherwise become final, the
individual's cross-border practice shall be summarily revoked. If the
conviction is reversed, the individual's cross-border practice
privileges shall be immediately reinstated.
(c) For purposes of paragraph (2) of subdivision (b), a crime is a
felony if it is specifically declared to be so by statute or is
charged as a felony, irrespective of whether, in a particular case,
the crime may be considered a misdemeanor as a result of
postconviction proceedings.
(d) For purposes of this section, a certified copy of the criminal
conviction shall be conclusive proof of the fact of the conviction.
(e) The board may, by regulation, designate additional felonies
that result in summary revocation of cross-border practice pursuant
to this section.
(f) An individual whose cross-border practice privileges have been
suspended or terminated under this section may petition the board to
be reinstated not less than one year from the date of suspension or
termination.
(g) An individual whose cross-border practice privileges have been
suspended or terminated under this section may, at any time,
petition the board to reinstate his or her privilege to engage in
cross-border practice if the legal authorization to provide services
as a certified public accountant is restored by the state where his
or her principal place of business is located.
SEC. 9. SEC. 10. Section 5096.2 of
the Business and Professions Code is amended to read:
5096.2. (a) An individual licensed out of state may be denied
cross-border practice in this state for failure to qualify under or
comply with the provisions of this article or implementing
regulations, or for any act that if committed by an applicant for
licensure would be grounds for denial of a license under Section 480
or if committed by a licensee would be grounds for discipline under
Section 5100, or for any act committed outside of this state that
would be a violation if committed within this state.
(b) The board may deny cross-border practice in this state using
either of the following procedures:
(1) Notifying the individual in writing of all of the following:
(A) That the cross-border practice is denied.
(B) The reasons for denial.
(C) The earliest date on which the individual is eligible for
cross-border practice in this state.
(D) The individual has a right to appeal the notice and request a
hearing under the provisions of the Administrative Procedure Act if a
written notice of appeal and request for hearing is made within 15
days.
(E) Should the individual not submit a notice of appeal and
request for hearing within 15 days, the board's action set forth in
the notice shall become final.
(2) Filing a statement of issues under the Administrative
Procedure Act.
(c) An individual licensed out of state who had been denied
cross-border practice in this state may petition for board approval
to practice under cross-border practice not less than one year after
the effective date of the notice or decision denying practice in this
state, unless a longer time period, not to exceed three years, is
specified in the notice or decision denying practice in this state.
SEC. 10. SEC. 11. Section 5096.3 of
the Business and Professions Code is amended to read:
5096.3. (a) The cross-border practice of an individual licensed
out of state, practicing or who practiced in this state under
cross-border practice, may besubject to revocation, suspension,
fines, or other disciplinary sanctions for any conduct that would be
grounds for discipline against a licensee of the board or for any
conduct in violation of this article or regulations implementing this
article.
(b) The board may recover its costs pursuant to Section 5107 as
part of any disciplinary proceeding against an individual who is
licensed in another state and who is practicing or has practiced
under cross-border practice in this state.
(c) An individual licensed out of state whose cross-border
practice has been revoked may petition for board approval to practice
in this state not less than one year after the effective date of the
board's decision revoking the individual's cross-border practice
unless a longer time period, not to exceed three years, is specified
in the board's decision revoking practice in this state.
(d) The provisions of the Administrative Procedure Act, including,
but not limited to, the commencement of a disciplinary proceeding by
the filing of an accusation by the board shall apply under this
article.
(e) If the board takes disciplinary action against an individual
licensed in another state who is practicing or practiced in this
state under cross-border practice, the board shall notify each state
in which the individual holds a license, certificate, or permit of
that action.
SEC. 11. SEC. 12. Section 5096.4 of
the Business and Professions Code is amended to read:
5096.4. (a) The right of an individual to engage in cross-border
practice may be administratively suspended at any time by an order
issued by the board or its executive officer, without prior notice or
hearing, for the purpose of conducting a disciplinary
investigation, proceeding, or inquiry concerning the representations
made in the notice, the individual's competence or qualifications to
practice under cross-border practice, failure to timely respond to a
board inquiry or request for information or documents, or under other
conditions and circumstances provided for by board regulation.
if the board or its executive officer finds both of
the following:
(1) The individual meets one of the following requirements:
(A) Acquired a disqualifying condition described in paragraph (2)
of subdivision (d) of Section 5096.
(B) Committed any act that, if committed by an applicant, would be
grounds for denial of a license or, if committed by a licensee,
would be grounds for discipline under Section 5100.
(C) Committed any act outside of this state that would be a
violation if committed within this state.
(2) Serious injury will result to the public before the matter
could be heard on notice.
(b) The administrative suspension order is immediately effective
when mailed to the individual's address of record or agent for notice
and service as provided for in this article.
(c) The administrative suspension order shall contain the
following:
(1) The reason for the suspension.
(2) A statement that the individual has the right, within 30 days,
to appeal the administrative suspension order and request a hearing
, and that failure to do so will result in the order
becoming permanent .
(3) A statement that any appeal hearing will be conducted under
the provisions of the Administrative Procedure Act applicable to
individuals who are denied licensure whose
license is subject to revocation, suspension, limitation, or
imposition of conditions , including the filing of a
statement of issues an accusation by the board
setting forth the reasons for the administrative suspension of
cross-border practice and specifying the statutes and rules
with which the individual must show compliance by producing proof at
the hearing and in addition any particular matters that have come to
the attention of the board and that would authorize the
administrative suspension, or the denial of cross-border practice.
(d) The burden is
on the individual whose cross-border practice is suspended to
establish both qualification and fitness to practice under
cross-border practice. on which the action is based.
(d) Hearings shall be conducted within 90 days of the board's
reception of the individual's appeal of the administrative suspension
order. A final decision shall be issued no later than 45 days after
submission of the matter. If the decision sustains the board's
suspension order, it shall become permanent. Otherwise, it shall be
immediately vacated.
(e) The administrative suspension shall continue in effect until
terminated by an order of the board or the executive officer ;
however, any suspension order that has been appealed shall be vacated
by operation of law, unless a final decision upholding the order is
issued within 135 days of the appeal .
(f) Administrative suspension is not discipline and shall not
preclude any individual from applying for a license to practice
public accountancy in this state.
(g) Proceedings to appeal an administrative suspension order may
be combined or coordinated with proceedings for denial of an
individual's authority to engage in cross-border practice or
discipline of an individual who has engaged in cross-border practice.
SEC. 12. SEC. 13. Section 5096.5 of
the Business and Professions Code is repealed.
SEC. 13. SEC. 14. Section 5096.6 of
the Business and Professions Code is amended to read:
5096.6. In addition to the authority otherwise provided for by
this code, the board may delegate to the executive officer the
authority to issue any notice or order provided for in this article
and to act on behalf of the board, including, but not limited to,
issuing a notice of denial of cross-border practice and an interim
suspension order, subject to the right of the individual licensed in
another state to timely appeal and request a hearing as provided for
in this article.
SEC. 14. SEC. 15. Section 5096.7 of
the Business and Professions Code is amended to read:
5096.7. Except as otherwise provided in this article, the
following definitions apply:
(a) The terms"license," "licensee," "permit," or "certificate" as
used in this chapter or Division 1.5 (commencing with Section 475)
shall include persons, as defined in Section 5035, performing
cross-border practice or practicing under an alternative firm
registration under this article, unless otherwise inconsistent with
the provisions of the article.
(b) The term "employee" as used in this article shall include, but
is not limited to, partners, shareholders, and other owners.
SEC. 15. SEC. 16. Section 5096.10 of
the Business and Professions Code is amended to read:
5096.10. The provisions of this article shall only be operative
if there is an appropriation from the Accountancy Fund in the annual
Budget Act to fund the activities in the article and sufficient
hiring authority is granted pursuant to a budget change proposal to
the board to provide staffing to implement this article.
SEC. 16. SEC. 17. Section 5096.11 of
the Business and Professions Code is repealed.
SEC. 17. SEC. 18. Section 5096.12 of
the Business and Professions Code is amended to read:
5096.12. (a) Anaccounting firm, as defined in Section 5035.3, or
sole proprietor, that performs attest services for entities
headquartered in this state, may engage in the practice of public
accountancy in this state through an alternative firm registration
provided that the firm or sole proprietor:
(1) Isauthorized to practice in another state and does not have an
office in this state.
(2) Has one partner, shareholder, or owner who qualifies for
cross-border practice in this state, and provides to the board his or
her name, state of
principal place of business, license number, and firm identifying
information.
(3) Is deemed to consent to the personal, subject matter, and
disciplinary jurisdiction of the board with respect to any practice
under this section.
(4) Shall comply with the provisions of this chapter, board
regulations, and other laws, regulations, and professional standards
applicable to the practice of public accountancy by the licensees of
this state and to any other laws and regulations applicable to
cross-border practice.
(5) Is deemed to have appointed the regulatory agency of each
state in which the firm or sole proprietor holds a certificate,
license, or permit as the agent on whom notices, subpoenas, or other
process may be served in any action or proceeding by the board
against the firm or sole proprietor.
(6) Shall cooperate with any board investigation or inquiry and
shall timely respond to a board investigation, inquiry, request,
notice, demand, or subpoena for information or documents and timely
provide to the board the identified information and documents.
(7) Shall not perform any services in this state under alternative
firm registration that the firm or sole proprietor is not legally
authorized to perform in its or his or her state of principal place
of business.
(b) "Attest services" include any audit or other engagement to be
performed in accordance with the Statements on Auditing Standards,
any examination of prospective financial information to be performed
in accordance with the Statements on Standards for Attestation
Engagements, and any engagement to be performed in accordance with
the standards of the Public Company Accounting Oversight Board.
"Attest services," for purposes of this article, do not include any
review of a financial statement to be performed in accordance with
the Statements on Standards for Accounting and Review Services.
(c) The board may revoke or suspend an alternative firm
registration, issue a fine pursuant to Article 6.5 (commencing with
Section 5116), or otherwise restrict or discipline the firm or sole
proprietor for any act that would be grounds for discipline against a
licensee or grounds for denial of a license.
SEC. 18. SEC. 19. Section 5096.13 of
the Business and Professions Code is repealed.
SEC. 19. SEC. 20. Section 5096.13 is
added to the Business and Professions Code, to read:
5096.13. (a) An accounting firm, as defined in Section 5035.3, or
sole proprietor that performs nonattest services for entities
headquartered in this state may engage in the practice of public
accountancy in this state without any form of firm registration
provided that the firm or sole proprietor:
(1) Is authorized to practice in another state and does not have
an office in this state.
(2) Is deemed to consent to the personal, subject matter, and
disciplinary jurisdiction of the board with respect to any practice
under this section.
(3) Shall comply with the provisions of this chapter, board
regulations, and other laws, regulations, and professional standards
applicable to the practice of public accountancy by the licensees of
this state and to any other laws and regulations applicable to
individuals practicing under cross-border practice.
(4) Is deemed to have appointed the regulatory agency of each
state in which the firm or sole proprietor holds a certificate,
license, or permit as the agent on whom notices, subpoenas, or other
process may be served in any action or proceeding by the board
against the firm or sole proprietor.
(5) Shall cooperate with any board investigation or inquiry and
shall timely respond to a board investigation, inquiry, request,
notice, demand, or subpoena for information or documents and timely
provide to the board the identified information and documents.
(6) Shall not perform any services in this state under
cross-border practice that the firm or sole proprietor is not legally
authorized to perform in their state of principal place of business.
(b) The board may revoke or suspend authorization to practice
under this section, issue a fine pursuant to Article 6.5 (commencing
with Section 5116), or otherwise restrict or discipline the firm or
sole proprietor for any act that would be grounds for discipline
against a licensee or grounds for denial of a license.
SEC. 20. SEC. 21. Section 5096.14 of
the Business and Professions Code is repealed.
SEC. 21. SEC. 22. Section 5096.15 of
the Business and Professions Code is repealed.
SEC. 22. SEC. 23. Section 5109 of
the Business and Professions Code is amended to read:
5109. The expiration, cancellation, forfeiture, or suspension of
a license or other authority to practice public accountancy by
operation of law or by order or decision of the board or a court of
law, or the voluntary surrender of a license by a licensee shall not
deprive the board of jurisdiction to commence or proceed with any
investigation of or action or disciplinary proceeding against the
licensee, or to render a decision suspending or revoking the license.
SEC. 23. SEC. 24. Section 5116.6 of
the Business and Professions Code is amended to read:
5116.6. Anywhere the term "licensee" is used in the article it
shall include certified public accountants, public accountants,
partnerships, corporations, individuals licensed out of state
practicing in this state under cross-border practice, holders of
alternative firm registrations, other persons licensed, registered,
or otherwise authorized to practice public accountancy under this
chapter, and persons who are in violation of any provision of Article
5.1 (commencing with Section 5096).
SEC. 24. SEC. 25. 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 not to exceed six hundred dollars ($600). The board may charge
a reexamination fee 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 not to 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 not to 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 not to 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 not to 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 nine months of
annual authorized expenditures. Any increase in the renewal fee shall
be made by regulation upon a determination by the board that
additional moneys are required to fund authorized expenditures and
maintain the board's contingent fund reserve balance equal to nine
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 board shall fix the fees in accordance with the limits of
this section and, on and after July 1, 1990, any increase in a fee
fixed by the board shall be pursuant to regulation duly adopted by
the board in accordance with the limits of this section.
(k) It is the intent of the Legislature that, to ease entry into
the public accounting profession in California, any administrative
cost to the board related to the certified public accountant
examination or issuance of the certified public accountant
certificate that exceeds the maximum fees authorized by this section
shall be covered by the fees charged for the biennial renewal of the
permit to practice.
SEC. 26. The Legislature hereby finds and declares
that it is the intent of the California Board of Accountancy to
provide those consumers who elect to use the services of certified
public accountants and firms licensed in the other 54 jurisdictions
with access to licensing information for each of those jurisdictions
through the board's Web site.
SEC. 25. SEC. 27. No reimbursement
is required by this act pursuant to Section 6 of Article XIII B of
the California Constitution because the only costs that may be
incurred by a local agency or school district will be incurred
because this act creates a new crime or infraction, eliminates a
crime or infraction, or changes the penalty for a crime or
infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIII B of the California Constitution.