BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 117|
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THIRD READING
Bill No: AB 117
Author: Niello (R)
Amended: 6/15/09 in Senate
Vote: 21
SENATE BUSINESS, PROF. & ECON. DEV. COMM. : 7-0, 6/8/09
AYES: Negrete McLeod, Aanestad, Corbett, Correa, Romero,
Walters, Yee
NO VOTE RECORDED: Wyland, Florez, Oropeza
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 70-0, 4/16/09 (Consent) - See last page
for vote
SUBJECT : Accountants
SOURCE : California Society of Certified Public
Accountants
DIGEST : This bill requires the holder of an inactive
certified public accountant license to disclose the
inactive license status on all materials, as specified.
ANALYSIS :
Existing law:
1. Licenses and regulates some 40,000 certified public
accountants (CPAs) under the California Accountancy Act
CONTINUED
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by the Board of Accountancy (Board) within the
Department of Consumer Affairs.
2. Requires persons licensed by the Board to complete
specified continuing education requirements to maintain
an active license.
3. Allows the Board to make exceptions to the continuing
education requirements for licensees who are not engaged
in public practice.
4. Provides that any board under the Department of Consumer
Affairs may establish by regulation an inactive license
category for persons not actively engaged in the
practice of the profession or vocation.
This bill:
1. Requires the holder of an inactive CPA license, when
using the CPA designation, title "certified public
accountant," or any reference that suggests the person
is licensed by the Board on correspondence, Internet
websites, business cards, name plates, or name plaques,
to place the term "inactive" immediately after that
designation.
2. Makes technical and clarifying changes.
Background
The California Accountancy Act provides that any person who
has received from the Board a certificate of certified
public accountant may be titled and known as a "certified
public accountant" and may also use the abbreviation "CPA."
No other person, except a firm registered under the
California Accountancy Act, may assume or use that title,
designation, or abbreviation or any other title,
designation, sign, card, or device tending to indicate that
the person using it is a CPA.
The California Accountancy Act further provides that a
person or firm may not use any title or designation in
connection with the designation "certified public
accountant" that is false or misleading, and authorizes the
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Board to adopt regulations covering the use of titles or
designations.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
SUPPORT : (Verified 6/30/09)
California Society of Certified Public Accountants (source)
ARGUMENTS IN SUPPORT : The bill's sponsor, 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 a license status when the CPA
designation is used."
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Anderson, Arambula, Beall, Bill
Berryhill, Blakeslee, Block, Blumenfield, Brownley,
Buchanan, Carter, Conway, Cook, Coto, Davis, De Leon,
DeVore, Duvall, Emmerson, Eng, Evans, Feuer, Fletcher,
Fong, Fuentes, Furutani, Gaines, Galgiani, Garrick,
Gilmore, Hagman, Hall, Harkey, Hayashi, Hernandez, Hill,
Huffman, Jeffries, Jones, Knight, Krekorian, Lieu, Logue,
Bonnie Lowenthal, Ma, Miller, Monning, Nestande, Niello,
Nielsen, John A. Perez, V. Manuel Perez, Portantino,
Price, Ruskin, Salas, Saldana, Silva, Smyth, Solorio,
Audra Strickland, Swanson, Torlakson, Torres, Torrico,
Tran, Villines, Yamada, Bass
NO VOTE RECORDED: Tom Berryhill, Caballero, Charles
Calderon, Chesbro, De La Torre, Fuller, Huber, Mendoza,
Nava, Skinner
JJA:mw 6/30/09 Senate Floor Analyses
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SUPPORT/OPPOSITION: SEE ABOVE
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