AB 1005 Assembly Bill

BILL NUMBER: AB 1005	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 20, 2009

INTRODUCED BY   Assembly Member Block

                        FEBRUARY 27, 2009

   An act to add Sections  5017.5   5017.1,
5017.5,  and 5103.5 to the Business and Professions Code,
relating to accountants.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1005, as amended, Block. California Board of Accountancy.
   Existing law provides for the licensure and regulation of
accountants by the California Board of Accountancy. Existing law sets
forth the duties of the board in that regard, and requires all board
meetings to be open and public. Existing law authorizes the board to
receive and investigate complaints against an accountant licensee or
any person acting as an accountant without a license.
   This bill would require  the board to post the minutes from
these open and public board meetings on its Internet Web site. 
 the board to broadcast, live, each of its board meetings
from its Internet Web site.   The bill would require the
board to provide a live broadcast, on   its Internet Web
site, of its board meetings that are open and public. The bill would
also specify that a technical failure prohibiting a live broadcast
would not prohibit the board from meeting and taking actions. 
The bill would also require the board to post on its Internet Web
site  notice of any   all  formal 
accusation   accusations  filed by the board
against a licensee  , as specified  .  The bill
would make specified findings and declarations. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
   
  SECTION 1.    The Legislature finds and declares
all of the following:
   (a) The Enron, WorldCom, Tyco, and similar stock scandals, the
subprime mortgage scandal, and the Madoff scandal have cost Americans
and California consumers, nonprofits, and businesses billions of
dollars of lost wealth.
   (b) In each scandal, accountants and accounting firms have played
a key role in facilitating these frauds.
   (c) Despite the hundreds of millions in settlements paid by
accounting firms as a result of these and similar scandals, the
amount of wealth lost and damage done to pensions, savings, and
investment capital has not and never will be recovered.
   (d) Accountants are not regulated nationally, and only the states
can prevent a person from acting as a certified public accountant.
The most vigorous regulation of the profession in California is
required to help ensure that future Californians will not be harmed
by similar scandals.
   (e) Therefore, to ensure that the regulation of accountants is
transparent and that the California Board of Accountancy is held
accountable to the public, it is necessary to enact the provisions of
this act. 
   SEC. 2.    Section 5017.1 is added to the  
Business and Professions Code   , to read:  
   5017.1.  The board shall post the minutes from meetings of the
board that are open and public pursuant to Section 5017 on the board'
s Internet Web site. 
  SEC. 2.  Section 5017.5 is added to the Business and Professions
Code, to read: 
   5017.5.  The board shall provide a live broadcast of each of its
board meetings from its Internet Web site. 
    5017.5.    (a) The board shall provide a live
broadcast, on its Internet Web site, of each of its board meetings
that are open and public.  
   (b) (1) If technical failure prevents the board from providing a
live broadcast as specified in subdivision (a), that failure shall
not constitute a violation of this section if the board exercised
reasonable diligence in providing a live broadcast.  
   (2) Failure to provide a live broadcast of its board meetings due
to technical failure shall not prohibit the board from meeting and
taking actions. The minutes from these meetings without a live
broadcast shall be posted on the board's Internet Web site pursuant
to Section 5017.1. 
  SEC. 3.  Section 5103.5 is added to the Business and Professions
Code, to read: 
   5103.5.  The board shall post on its Internet Web site notice of
all formal accusations filed by the board against a licensee.

    5103.5.    The board shall post on its Internet Web
site, in an easily marked and identifiable location, all formal
accusations, including the basis for the accusation and alleged
violations filed by the board against a licensee.