BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 823|
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THIRD READING
Bill No: SB 823
Author: Senate Business, Professions and Economic Development
Committee
Amended: As introduced
Vote: 27 - Urgency
SENATE BUSINESS, PROF. & ECON. DEV. COMM. : 10-0, 4/29/13
AYES: Price, Emmerson, Block, Corbett, Galgiani, Hernandez,
Hill, Padilla, Wyland, Yee
SUBJECT : Accountancy: licensure
SOURCE : Author
DIGEST : This bill allows applicants who pass the certified
public accountant (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; and 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.
ANALYSIS :
Existing law:
1.Licenses and regulates more than 40,000 CPAs, under the
Accountancy Act, by the California Board of Accountancy (CBA).
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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). These provisions
become inoperative on January 1, 2014.
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 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).
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.
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.
Background
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According to the 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, this bill maintains those applicants eligibility
for licensure.
The CBA states that Business and Professions Code Section 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.
Comments
This bill is one of three "committee bills" authored by the
Senate Business, Professions and Economic Development Committee
and is 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
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from the necessity and burden of having separate measures for a
number of non-controversial revisions. The provisions of this
bill make minor, technical and updated changes, and also make
corrections to drafting errors in prior legislation.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local:
No
SUPPORT : (Verified 4/30/13)
California Board of Accountancy
California Society of CPAs
MW:ej 5/1/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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