BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 117
                                                                  Page  1

          Date of Hearing:   March 17, 2009

                   ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS
                                 Mary Hayashi, Chair
                    AB 117 (Niello) - As Amended:  March 12, 2009
           
          SUBJECT  :   Accountants.

           SUMMARY  :   Requires the holder of an inactive certified public  
          accountants (CPA) license to disclose the inactive license  
          status on all materials that display the CPA designation.

           EXISTING LAW  :  

           1)Requires persons practicing public accountancy in this state  
            to be licensed by the California Board of Accountancy (CBA)  
            and requires specified continuing education requirements to  
            maintain an active license. 

          2)Allows CBA to make exceptions to the continuing education  
            requirements for licensees who are not engaged in public  
            accountancy.

           FISCAL EFFECT  :   Unknown

           COMMENTS  : 

           Purpose of this bill  .  According to the author's office,  
          "Currently, accountants can represent themselves as Certified  
          Public Accountants even if they are not current on their  
          continuing education.  Legislation is needed to protect  
          consumers by requiring that CPAs with inactive licenses disclose  
          that they are inactive when using the CPA title by placing the  
          word "inactive" immediately after "CPA" on business cards,  
          stationery, r?sum?s, and other business communications."

           Background  .  Existing law requires persons practicing public  
          accountancy in this state to be licensed by CBA.  However,  
          accountants who work for private businesses, government  
          entities, or other non-public accounting services may forgo  
          continuing education requirements and active licensure as a CPA.  
           This bill will require CPAs with inactive license status to  
          disclose that information on all materials where the CPA  
          designation is used.









                                                                  AB 117
                                                                  Page  2

           Support  .  The California Society of Certified Public Accountants  
          writes, "The provisions of AB 117 are consistent with the  
          provisions of the Uniform Accountancy Act that have already been  
          adopted in 30 other states to require either disclosure of  
          inactive status or to require continuing education of every CPA.

          "AB 117 will provide significant consumer protection by  
          requiring disclosure of license status when the CPA designation  
          is used."

           



          REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Society of Certified Public Accountants

           Opposition 
           
          None on file.
           
          Analysis Prepared by  :    Ross Warren / B. & P. / (916) 319-3301