BILL ANALYSIS Ó
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|Hearing Date:April 29, 2013 |Bill No:SB |
| |823 |
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SENATE COMMITTEE ON BUSINESS, PROFESSIONS
AND ECONOMIC DEVELOPMENT
Senator Curren D. Price, Jr., Chair
Bill No: SB 823Author:Business, Professions and
Economic Development Committee
As Introduced: March 20, 2013 Fiscal: No
SUBJECT: Accountancy: licensure. (Urgency)
SUMMARY: Urgency measure which makes corrections and updates to prior
legislation relating to the practice of accountancy.
Existing law:
1)Licenses and regulates more than 40,000 certified public accountants
(CPAs) under the Accountancy Act (Act) by the California Board of
Accountancy (CBA) within the Department of Consumer Affairs.
(Business and Professions Code (BPC) § 5000 et. seq.)
2)Requires an applicant for the CPA license to comply with education,
examination, and experience requirements under one of two provisions
that establish different criteria (Pathways) for CPA licensure as
follows:
a) Completion of a baccalaureate or higher degree, as specified,
including 24 semester units in accounting and 24 semester units
in business related subjects, passing the examination prescribed
by the CBA, and two years of qualifying experience (120-hour
pathway). The law makes these provisions inoperative on January
1, 2014. (BPC § 5092)
b) Completion of a baccalaureate or higher degree, as specified,
including 24 semester units in accounting and 24 semester units
in business related subjects, passing the examination prescribed
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by the CBA. In addition, requires proof of completion of at
least 150 semester units (including the baccalaureate degree),
and one year of qualifying experience (150-hour pathway). (BPC §
5093)
1)Requires an applicant for the CPA examination to submit evidence of
completion of a baccalaureate or higher degree prior to sitting for
the examination. (BPC § 5093)
This bill:
1)Allows applicants who pass the CPA examination on or before December
31, 2013 two additional years to December 31, 2015 to complete the
general accounting experience requirement necessary for CPA
licensure.
2)Allows CPA applicants enrolled in a program that grants concurrent
conferral of a master's and baccalaureate degree, to qualify for the
CPA examination prior to the conferral of a baccalaureate degree.
The institution must mail to the CBA an official transcript and a
letter documenting that the applicant is in good standing in a
program that will result in the concurrent conferral of degrees, has
fulfilled the requirements for the baccalaureate degree, and the
date the applicant met the requirements for conferral of a
baccalaureate degree.
FISCAL EFFECT: This bill has been keyed "non-fiscal" by Legislative
Counsel.
COMMENTS:
1) Purpose. This bill is one of three "committee bills" authored by
the Business, Professions and Economic Development Committee and is
an urgency measure intended to consolidate several
non-controversial provisions related to the programs and
professions under the Business and Professions Code. Consolidating
the provisions in one bill is designed to relieve licensing boards
and professions from the necessity and burden of having separate
measures for a number of non-controversial revisions.
The provisions of this bill are minor, technical and updating changes,
and also make corrections to drafting errors in prior legislation.
As a Committee bill, if controversy or opposition should arise
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regarding any provision that cannot be resolved, then that
provision will be removed from the bill. This will eliminate the
chance of placing any of the other provisions in jeopardy.
1)California Board of Accountancy (CBA). According to the California
Board of Accountancy (CBA), under SB 819 (Yee, Chapter 398, Statutes
of 2009) beginning January 1, 2014, CPA applicants will be required
to obtain 150 semester units, including 24 semester units in
accounting subjects, 24 semester units in business-related subjects,
20 semester units in accounting study, and 10 semester units in
ethics study, and one year of general accounting experience. As a
result, many applicants who planned their respective education and
general accounting experience under the presumption that the
existing pathways to licensure would still exist, may be ineligible
to become licensed when the new requirements take effect on January
1, 2014, and will have to meet the new educational requirements. By
extending the existing pathways for those who pass the examination,
the amendments would maintain those applicants eligibility for
licensure. (BPC §§ 5092, 5093 (f), 5094.3)
The CBA states that the Business and Professions Code (BPC § 5093)
requires that an applicant for the CPA Exam shall present evidence
that a baccalaureate degree has been completed and conferred.
However, applicants enrolled in a five-year master's degree program
typically cannot confer a baccalaureate degree until the entire
program is completed; therefore, if the candidate has fulfilled the
baccalaureate degree requirements, but the degree has not been
conferred, the applicant cannot qualify for the CPA Exam under
existing law. This bill allows applicants who are enrolled in a
program that grants concurrent conferral of a master's and
baccalaureate degree, to qualify for the CPA examination prior to
the conferral of a baccalaureate degree. The applicant must have
the institution provide a letter and transcripts documenting that
the applicant is in good standing in a program that will result in
the concurrent conferral of degrees, has fulfilled the requirements
for the baccalaureate degree, and the date on which the applicant
met the institution's requirements for conferral of a baccalaureate
degree. (BPC § 5093 (b) (1) (A) and (B))
2)Related legislation. SB 1405 (De León, Chapter 411, Statutes of
2012) revised California's practice privilege statutes for the
practice of accountancy to allow out-of-state licensees to practice
in California with no notice or fee paid to the CBA.
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SB 773 (McLeod, Chapter 334, Statutes of 2011) defined what courses
qualify to meet the 10 semester units of ethics study beginning
January 1, 2014.
SB 819 (Yee, Chapter 398, Statutes of 2009) requires applicants for CPA
licensure, beginning January 1, 2014, to obtain 150 semester units,
including 24 semester units in accounting subjects, 24 semester
units in business-related subjects, 20 semester units in accounting
study, and 10 semester units in ethics study, and one year of
general accounting experience.
SUPPORT AND OPPOSITION:
Support:
California Society of CPAs
Executive Officer, California Board of Accountancy
Opposition:
None received as of April 24, 2013.
Consultant:G. V. Ayers