BILL NUMBER: SB 691 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 2, 2009
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 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 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 pathway, imposes the same educational and examination
requirements as the first 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 require that an
applicant for licensure under the first pathway acknowledge , at
the time he or she sits for the examination for that license,
that his or her licensure under that pathway will
may 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 the board concludes that any
state disagrees with that assessment, the bill would specify
that the above provisions and the first pathway would become
inoperative require the board to make a specified
report to the Legislature with regard to options for establishing
substantial equivalency .
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 pursuant to Section 5092 shall
acknowledge, at the time he or she sits for the examination for
that license, that licensure under those subdivisions of
that section will that section may 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. (b), then the board
shall immediately report that fact to the Legislature, shall identify
the states, summarize their reasons, and provide options for
California to establish substantial equivalency as set forth in
subdivision (b).