BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 117
                                                                  Page  1

          Date of Hearing:   April 1, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                    AB 117 (Niello) - As Amended:  March 12, 2009 

          Policy Committee:                              Business and  
          Professions  Vote:                            10 - 0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill requires that the holder of an inactive certified  
          public accountant (CPA) license disclose his or her inactive  
          license status on all materials that display the CPA  
          designation.

           FISCAL EFFECT  


          There are no significant costs associated with this legislation.  



           COMMENTS  

           Rationale  .  This bill comes from concerns raised by the  
          California Society of Certified Public Accountants (CSCPA) over  
          the fact that the California Board of Accountancy allows CPAs to  
          continue using their titles even if their licenses are inactive.  
          According to the author, it is essential that employers,  
          investors, and consumers understand the qualifications of the  
          individuals they are dealing with in making investment and  
          employment decisions.

           Background  . In 16 states, an accountant must remain current with  
          his or her continuing education credits to maintain their  
          license.  In 14 other states, an accountant can chose to become  
          "inactive" and not remain current with their education in which  
          case they must disclose their status on all of their written  
          materials (i.e. business cards, stationery, website).  
          California, however, allows accountants to become inactive, but  








                                                                  AB 117
                                                                  Page  2

          does not require any disclosure of the license status.  This  
          bill would change that provision to require CPAs to disclose  
          their inactive status. 


           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)  
          319-2081