BILL NUMBER: SB 306	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 22, 2011
	AMENDED IN ASSEMBLY  JULY 7, 2011
	AMENDED IN ASSEMBLY  JUNE 27, 2011
	AMENDED IN SENATE  APRIL 25, 2011

INTRODUCED BY   Senator De León

                        FEBRUARY 14, 2011

   An act to add Section 5057 to, and to repeal and add Section
5096.14 of, the Business and Professions Code, relating to
accountancy  , and declaring the urgency thereof, to take effect
immediately  .



	LEGISLATIVE COUNSEL'S DIGEST


   SB 306, as amended, De León. Accountancy.
   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, as specified. A violation of this provision is a crime.
Existing law requires the board to amend a specified regulation to
extend from December 31, 2007, to December 31, 2010, a safe harbor
pertaining to practicing accountancy without a practice privilege for
up to 5 days prior to submitting a notification form to the board,
as specified.
   This bill would repeal the provision applicable to that regulation
and instead set forth a 5-day safe harbor for a person practicing
accountancy under a practice privilege, subject to specified
requirements. The bill would authorize the board to fine an
individual who notifies the board of his or her practice more than 5
days after beginning practice within the state. The bill also would
exempt from the requirement to obtain a permit or secure a practice
privilege an individual holding a valid and current license,
certificate, or permit to practice public accountancy from another
state if specified conditions are satisfied. 
   This bill would declare that it is to take effect immediately as
an urgency statute. 
   Vote:  majority   2/3  . Appropriation:
no. Fiscal committee: yes. State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 5057 is added to the Business and Professions
Code, to read:
   5057.  Notwithstanding any other provision of law, an individual
holding a valid and current license, certificate, or permit to
practice public accountancy from another state shall be exempt from
the requirement to obtain a permit to practice public accountancy
issued by the board under this chapter or to secure a practice
privilege pursuant to Article 5.1 (commencing with Section 5096) if
all of the following conditions are satisfied:
   (a) The individual's client is located in another state.
   (b) The individual's engagement with the client relates to work
product to be delivered in another state.
   (c) The individual does not solicit California clients, or have
his or her principal place of business in this state.
   (d) The individual does not assert or imply that he or she is
licensed to practice public accountancy in California.
   (e) The individual's practice of public accountancy in this state
on behalf of the client located in another state is of a limited
duration, not extending beyond the period required to service the
engagement for the client located in another state.
   (f) The individual's practice of public accountancy in this state
specifically relates to servicing the engagement for the client
located in another state.
  SEC. 2.  Section 5096.14 of the Business and Professions Code is
repealed.
  SEC. 3.  Section 5096.14 is added to the Business and Professions
Code, to read:
   5096.14.  (a) An individual shall not be deemed to be in violation
of this article solely because he or she begins the practice of
public accounting in California prior to notifying the board as
indicated in subdivision (c) of Section 5096, provided the notice is
given within five business days of the date practice begins. An
individual who properly notifies the board within the five-day period
provided for in this section shall be deemed to have a practice
privilege from the first day of practice in California unless the
individual fails to timely submit the required fee pursuant to
subdivision (c) of Section 5096.
   (b) Subdivision (a) does not apply in those instances in which
prior approval by the board is required pursuant to subdivision (g)
of Section 5096.
   (c) In addition to any other applicable sanction, the board may
issue a fine pursuant to Section 5096.3 for notifying the board more
than five business days after beginning practice in California.
   SEC. 4.    This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
 
   In order to ensure that the California Board of Accountancy does
not expend its limited enforcement and other resources on matters in
which California consumers are not at risk, current law related to
when the board shall require out-of-state licensees to file a
practice privilege must be clarified as soon as possible, and for
this reason it is necessary that this bill take effect immediately.