BILL ANALYSIS Ó
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
SB 542 (Price)
Hearing Date: 5/16/2011 Amended: 5/5/2011
Consultant: Bob Franzoia Policy Vote: B,P&ED 9-0
_________________________________________________________________
____
BILL SUMMARY: SB 542 would do the following:
- Extend, from January 1, 2102 to January 1, 2015, operation of
provisions establishing the Professional Fiduciaries Bureau.
- Revise the exemption from the professional fiduciary licensing
requirement for enrolled agents to instead apply to an enrolled
agent providing fiduciary services that are ancillary to the
primary services of an enrolled agent. An enrolled agent who is
soliciting clients for fiduciary services would be required to
obtain a license in accordance with the Professional Fiduciaries
Act.
- Extend, from January 1, 2012 to January 1, 2016, operation of
the California Board of Accountancy and its executive director.
- Extend, from January 1, 2012 to January 1, 2016, the board's
peer review program and the peer review oversight committee.
- Make related, non-fiscal, changes.
_________________________________________________________________
____
Fiscal Impact (in thousands)
Major Provisions 2011-12 2012-13 2013-14 Fund
Sunset extension (bureau) $155 $310
$310Special*
- fully offset by program revenue -
Enrolled agent exemption Unknown, minor loss of
licensing revenue Special*
Sunset extension (board) $5,600 $11,200
$11,200Special** - fully offset by program
revenue -
* Professional Fiduciary Fund (3108)
** Accountancy Fund (0704)
_________________________________________________________________
____
STAFF COMMENTS:
SB 542 (Price)
Page 1
The Professional Fiduciary Bureau, established by Chapter
491/2006, implements and enforces the Professional Fiduciaries
Act by licensing and regulating persons who act as professional
fiduciaries in California. The bureau protects against fraud
and abuse by those who are charged with the care of California's
most vulnerable residents by ensuring that minimum competency
standards are met by establishing educational and experience
requirements, conducting examinations, investigating violations
of professional ethics and law, and disciplining licensees when
appropriate.
There would be an unknown, minor loss of licensing revenue by
exempting a small percentage of enrolled agents who are
providing fiduciary services that are ancillary to the primary
services of the enrolled agent, as specified.
The California Board of Accountancy regulates of 77,000
licenses, the largest group of accounting professionals in the
nation. By authority of the Accountancy Act, the board
qualifies California candidates for the National Uniform
Certified Public Accountant (CPA) Examination; certifies,
licenses, and renews licenses of individual CPAs and Public
Accountants (PAs) and registers CPA and PA partnerships and
corporations; receives and investigates complaints; takes
enforcement actions against licensees for violations of board
statutes and regulations.