BILL NUMBER: SB 691 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 1, 2009
AMENDED IN SENATE APRIL 13, 2009
INTRODUCED BY Senator Yee
(Coauthors: Senators Calderon and Florez)
(Coauthors: Assembly Members Ma and Niello)
FEBRUARY 27, 2009
An act to amend and repeal Section 5092 of, and to amend,
repeal, and add Sections 5082.3, 5082.4, 5090, and 5095 of, the
Business and An act to add Section 5094.5 to the
Business and Professions Code, relating to accountants.
LEGISLATIVE COUNSEL'S DIGEST
SB 691, as amended, Yee. Accountants.
Existing law provides for the licensure and regulation of
accountants by the California Board of Accountancy in the Department
of Consumer Affairs. Existing law requires an applicant for the
certified public accountant license to comply with certain
education, examination, and experience requirements under one of 2
provisions that set forth different standards .
, commonly referred to as the 2 "pathways." Existing law,
under the first provision pathway ,
requires completion of a baccalaureate or higher degree conferred by
a college or university with completion of at least 24 semester units
in accounting and 24 semester units in business related subjects,
board exam passage, and 2 years of qualifying experience. Existing
law, under the 2nd provision pathway ,
imposes the same educational and examination requirements as the
first provision pathway , but also
requires proof of completion of at least 150 semester units, and
instead accepts one year of qualifying experience.
Existing law, until January 1, 2011, allows an out-of-state
accountant to engage in the practice of accountancy in this state
without obtaining a certificate or license if the individual has
practiced for at least 4 of the last 10 years, the individual is
licensed in another state deemed substantially equivalent to this
state under the 2nd pathway, or the individual's qualifications are
determined to be substantially equivalent to this state's
qualifications under the 2nd pathway.
On and after January 1, 2014, this bill would
delete the first provision described above, thereby requiring, on and
after January 1, 2014, applicant compliance with the 2nd provision.
The bill would make conforming changes to related provisions
require that an applicant for licensure under the
first pathway acknowledge that his or her licensure under that
pathway will not be considered substantially equivalent for purposes
of engaging in the practice of accountancy in another state under a
practice privilege, and that he or she shall be subject to
unprofessional conduct if he or she seeks to engage in the practice
of accountancy under a practice privilege in any state that requires
an individual to have completed at least 150 semester hours or units.
The bill would require that these provisions be interpreted to
establish California as a substantially equivalent state for purposes
of the laws of another state, and require that all individuals
licensed before January 1, 2014, and all individuals licensed after
January 1, 2014, under the 2nd pathway, not be required to
individually establish substantial equivalency in any state. The bill
would require the California Board of Accountancy to verify with
each state that it will deem these requirements as being
substantially equivalent under each state's practice privilege or
reciprocity statutes. If any state disagrees with that assessment,
the bill would specify that the above provisions and the first
pathway would become inoperative .
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. Section 5094.5 is added to the
Business and Professions Code , to read:
5094.5. (a) Commencing January 1, 2014, subdivisions (b) and (d)
of Section 5094 shall only be available to an applicant for a
certified public accountant license who acknowledges at the time he
or she sits for the examination for that license, that licensure
under those subdivisions of that section will not be considered
substantially equivalent for purposes of practice privileges in
states that require 150 semester units or hours for licensure, and
that it shall be considered unprofessional conduct for a person
licensed pursuant to subdivisions (b) and (d) of Section 5094 to seek
practice privileges in any state that requires an individual from
another state to have 150 semester units or hours to receive practice
privileges or reciprocity. This subdivision, in conjunction with
Section 5093, shall be interpreted to establish California, as a
state, as substantially equivalent to every state that has adopted
150 semester units or hours as the only educational pathway available
for licensure in that state, such that no individual licensed in
California prior to January 1, 2014, and no individual licensed
pursuant to Section 5093 subsequent to January 1, 2014, shall be
required to individually establish substantial equivalence in any
other state.
(b) The board shall verify with each state that the provisions of
subdivision (a), in conjunction with Section 5093, establish
California, as a state, as substantially equivalent under each state'
s practice privilege or reciprocity statutes, such that no individual
licensed in California prior to January 1, 2014, and no individual
licensed pursuant to Section 5093 after January 1, 2014, shall be
required to individually establish substantial equivalence in any
other state. The board shall perform this function with existing
resources.
(c) If the board concludes that any state does not consider the
provisions of subdivision (a) as sufficient to establish California,
as a state, as substantially equivalent as set forth in subdivision
(b), then subdivision (a) shall be inoperative, and the provisions of
Section 5093 shall govern the education requirements for applicants
for licensure. All matter omitted in this version of the bill
appears in the bill as amended in the Senate, April 13, 2009 (JR11)