BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair AB 431 (Ma) Hearing Date: 7/11/2011 Amended: 6/6/2011 Consultant: Bob Franzoia Policy Vote: B&P 9-0 _________________________________________________________________ ____ BILL SUMMARY: AB 431 would authorize the California Board of Accountancy (board) to establish, by regulation, a system for the placement of a license on a retired status for those accountants who are non-actively engaged in the practice of public accountancy. This bill would require the board to deny an application for a retired status license if the applicant's permit is canceled, suspended, revoked, otherwise restricted, or, commencing on a specified date, delinquent. This bill would provide for that application fee for a retired status license and for restoration of a retired status license to active status to be fixed by the board in an amount not to exceed $250 and $1,000 respectively. By increasing that part of revenue in the Accountancy Fund that is continuously appropriated, this bill would make an appropriation. _________________________________________________________________ ____ Fiscal Impact (in thousands) Major Provisions 2011-12 2012-13 2013-14 Fund Revision of licensing Likely significant ($50 to up to $300)Special* categories and fees decrease in license fee revenue annuallythrough 2017; fee revenue increase or decrease may vary at board discretion * Accountancy Fund _________________________________________________________________ ____ STAFF COMMENTS: This bill may meet the criteria for referral to the Suspense File. Under current law, licensees who are retiring from the profession must either voluntarily surrender their license or stop paying renewal fees leading to a delinquent status and eventual cancellation of the license. A license status of "delinquent," "cancelled," or "surrendered" has a negative connotation and does not accurately reflect a retired licensee's > (>) Page 1 status to consumers. This bill would allow the board to establish a process for accountants to receive a retired designation while providing consumers with protection by prohibiting licensees facing disciplinary action from receiving a retired designation. This bill would also require the board to provide licensees, who may later reconsider retirement, a means to restore their license to an active status. The fiscal impact of changes in licensing status and fees can vary widely. Under one estimate of the changes proposed by this bill, where there would be an increase in retired status licenses (up to $250 one time) and a related decrease in active status licenses (up to $120 every two years, potentially increasing to up to $200 every two years in a later renewal period), license revenue to the Accountancy Fund may decline by up to $300,000 annually.