BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1005
                                                                  Page  1

          Date of Hearing:   May 20, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                    AB 1005 (Block) - As Amended:  April 30, 2009 

          Policy Committee:                              Business and  
          Professions  Vote:                            10 - 0 

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill requires the California Board of Accountancy (CBA) to  
          publish on its website documents related to pending disciplinary  
          accusations, a live webcast of public meetings, and the meeting  
          minutes. 

           FISCAL EFFECT  

          Unknown, moderate costs, likely less than $75,000 in special  
          funds, to implement the live webcasting of CBA board meetings. 

           COMMENTS  

          1)Purpose  . According to the author's office, "The purpose of the  
            bill is to provide transparency and public access to  
            California Board of Accountancy meetings and formal  
            accusations filed against a licensee. Given the importance of  
            the accounting profession to the operations and disclosure  
            requirements of public and private entities required under  
            both state and federal law, increasing transparency and public  
            access will lead to more informed choices by consumers."

           2)Opposition  .  The California Society of Certified Public  
            Accountants writes; "We are concerned that posting the  
            accusations will have irreparable impact on the ability of the  
            CPA to make a living even if the allegations contained in the  
            accusation are dismissed.   This is not an unprecedented  
            occurrence as in the last decade at least 9 accusations did  
            not result in discipline and in uncounted instances the  
            allegations were modified in some way. To tarnish the  
            reputations of CPAs who have not been afforded due process is  








                                                                  AB 1005
                                                                  Page  2

            unconscionable and serves no valid consumer protection  
            purpose."
           
          3)Related Legislation  . AB 797 (Ma) requires the California Board  
            of Accountancy (CBA) to publish disciplinary decisions on its  
            website for a period of ten years from the date the decision  
            was issued. That bill is currently pending before this  
            committee.


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