BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 1405|
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THIRD READING
Bill No: SB 1405
Author: De León (D)
Amended: 4/10/12
Vote: 21
SENATE BUSINESS, PROF. & ECON. DEV. COMMITTEE : 9-0,
4/16/12
AYES: Price, Emmerson, Corbett, Correa, Hernandez, Negrete
McLeod, Strickland, Vargas, Wyland
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SUBJECT : Accountancy: military service: inactive
service
SOURCE : Author
DIGEST : This bill, beginning January 1, 2014, authorizes
a certified public accountant to apply to have his/her
permit placed in a military inactive status if the
applicant is engaged in active duty as a member of the
California National Guard or the United States Armed
Forces, as specified.
ANALYSIS :
Existing law:
1. Licenses and regulates some 80,000 certified public
accountants (CPAs) and public accountants (PAs) under
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the Accountancy Act by the California Board of
Accountancy (Board) within the Department of Consumer
Affairs (DCA).
2. Authorizes any Board or bureau within the DCA to
establish, by regulation, a system for an inactive
license category for persons not actively engaged in
practice, subject to certain provisions, including:
(Business and Professions Code (BPC) Section 462)
3. Establishes fees for the renewal of a CPA license. (BPC
Section 5134)
4. Requires each licensee to complete specified continuing
education requirements as condition of license renewal.
(BPC Section 5027)
5. Requires each CPA firm to undergo a peer review at least
every three years as a condition of registration
renewal. (BPC Section 5076)
6. Authorizes any licensee whose license expired while
he/she was on active duty as a member of the California
National Guard or the U.S. Armed Forces to reinstate
his/her license without examination or penalty if
certain requirements are met. (BPC Section 114)
This bill:
1. Authorizes, beginning January 1, 2014, a CPA or PA to
apply to have his/her permit placed in a military
inactive status if the applicant is engaged in active
duty as a member of the California National Guard or the
U.S. Armed Forces.
2. Requires the Board to deny an application for a military
inactive status the applicant's permit is canceled,
suspended, revoked, or otherwise restricted or subject
to disciplinary action by the Board.
3. Prohibits a holder of a military inactive status permit
from engaging in any activity for which a permit is
required.
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4. Exempts the holder of a permit in a military inactive
status from all of the following:
A. Payment of the biennial renewal fee.
B. Continuing education requirements.
C. Peer review requirements.
5. Establishes criteria to convert a permit from military
inactive status to active status prior to discharge from
active duty in the California
National Guard or the U.S. Armed Forces. The person
must:
A. Pay the current biennial renewal fee.
B. Meet continuing education requirements prescribed
by the Board.
C. Meet peer review requirements prescribed by the
Board.
6. Requires a military inactive status permit holder,
within one year from his/her discharge from active duty
in the California National Guard or the U.S. Armed
Forces, to do all of the following:
A. Provide evidence to the Board of the discharge
date.
B. Pay the current biennial renewal fee.
C. Meet continuing education requirements prescribed
by the Board.
D. Meet the peer review requirements prescribed by
the Board.
7. Authorizes the Board to adopt regulations as necessary
to administer the above provisions.
8. Requires the military inactive permit, when using the
title certified public accountant, CPA, or any other
reference suggesting licensure by the Board, on
correspondence, Internet Web sites, business cards,
nameplates, or name plaques, must place the term
"military inactive" immediately after that title or
designation.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
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Local: Yes
SUPPORT : (Verified 4/30/12)
CalCPA
ARGUMENTS IN SUPPORT : According to the author's office,
this bill exempts a certified public accountant or a public
accountant from the biennial renewal fee while the permit
holder is engaged in full-time training or active service
in the California National Guard, U.S. Army, Navy, Air
Force, or Marine Corps.
According to the author's office, currently CPAs or PAs are
required to pay the biennial fee for the renewal of each of
the permits to engage in the practice of public
accountancy, an amount up to $250.
The author's office states that CPAs who are engaged in
full-time training or active service in the U.S. Army,
Navy, Air Force, or Marine Corps cannot practice
accountancy and should not be burdened with the cost of
licensing when they indeed cannot practice and are actively
engaged in military service. Existing law does not provide
exemptions for military service, and the Author states that
this bill addresses the issue.
JJA:kc 5/1/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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