BILL ANALYSIS
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|Hearing Date:April 19, 2010 |Bill No:SB |
| |1490 |
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SENATE COMMITTEE ON BUSINESS, PROFESSIONS
AND ECONOMIC DEVELOPMENT
Senator Gloria Negrete McLeod, Chair
Bill No: SB 1490Author:Business, Professions and
Economic
Development Committee
As Amended:April 12, 2010Fiscal: Yes
SUBJECT: Professions and vocations.
SUMMARY: Urgency measure which makes corrections and updates to prior
legislation relating to the practice of accountancy.
Existing law:
1)Licenses and regulates more than 40,000 certified public accountants
(CPAs) under the Accountancy Act (Act) by the California Board of
Accountancy (CBA) within the Department of Consumer Affairs.
2)Authorizes a CPA licensed to practice in another state and whose
principle place of business is not in this state to practice public
accountancy in California through a practice privilege, by notifying
the CBA, as specified, of the intent to practice in California,
swearing under penalty of perjury that they are qualified to do so,
and paying the required fee.
3)Authorizes a CPA firm authorized to practice in another state and
that does not have an office in this state to practice in California
through a CPA that holds a practice privilege, subject to specified
requirements, including:
a) Authorizes the CBA to discipline that CPA firm for any act
that would be grounds for discipline against a CPA holding a
practice privilege.
b) Repeals these provisions on January 1, 2011.
SB 1490
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4)Requires an applicant for the CPA license to comply with education,
examination, and experience requirements under one of two provisions
that establish different criteria (Pathways) for CPA licensure as
follows:
a) Completion of a baccalaureate or higher degree, as specified,
including 24 semester units in accounting and 24 semester units
in business related subjects, passing the examination prescribed
by the CBA. In addition, requires proof of completion of at
least 150 semester units (including the baccalaureate degree),
and one year of qualifying experience (150-hour pathway).
b) Completion of a baccalaureate or higher degree, as specified,
including 24 semester units in accounting and 24 semester units
in business related subjects, passing the examination prescribed
by the CBA, and two years of qualifying experience (120-hour
pathway). The law makes these provisions inoperative on January
1, 2014, and provides that they shall remain operative if
specified educational requirements are reduced or eliminated, or
if the practice privilege requirements are amended or repealed.
1)Requires the CBA to hold a hearing on a report by the California
Research Bureau (CRB) regarding the Uniform Accountancy Act's
150-hour rule no later than September 1, 2010.
This bill:
1)Deletes the sunset date on the provisions authorizing a CPA firm to
practice in California through a practice privilege (#3, above), and
provides that the amendment removing that sunset date shall not be
deemed an amendment which would extend the continuation of the
120-hour pathway (as described in Item #4 b), above).
2)Requires the CBA to hold a hearing no later than six months following
issuance of the report by CRB on the Uniform Accountancy Act's
150-hour rule.
3)Makes technical and conforming changes.
4)Makes its provisions operative as an urgency measure.
FISCAL EFFECT: Unknown. This bill has been keyed "fiscal" by
Legislative Counsel.
SB 1490
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COMMENTS:
1.Purpose. This bill is one of three "committee bills" authored by the
Business, Professions and Economic Development Committee and is an
urgency measure intended to consolidate several non-controversial
provisions related to the programs and professions under the
Business and Professions Code. Consolidating the provisions in one
bill is designed to relieve licensing boards and professions from
the necessity and burden of having separate measures for a number of
non-controversial revisions.
The provisions of this bill are minor, technical and updating changes,
and also make corrections to drafting errors in prior legislation.
As a Committee bill, if controversy or opposition should arise
regarding any provision that cannot be resolved, then that provision
will be removed from the bill. This will eliminate the chance of
placing any of the other provisions in jeopardy.
2.Background. California Board of Accountancy (CBA). According to the
California Board of Accountancy (CBA), last year SB 819 (Yee,
Chapter 308, Statutes of 2009) deleted the sunset dates on the
practice privilege laws under which a CPA licensed in another state
may legally practice in California, thereby indefinitely extending
those laws. The bill further provided that certain provisions
relating to sunsetting the 120-hour pathway for CPAs would be
invalidated if the practice privilege requirements were amended
before 2014. However, the bill inadvertently failed to delete the
sunset date on the practice privilege for CPA firms licensed in
another state, and for the board's authority to discipline those
firms. This bill conforms with SB 819 by removing the sunset date
on BPC 5096.12, and clarifies that the amendment shall not be
deemed an amendment that would invalidate the 120-hour pathway
sunset in 2014.
SB 819 also required the CBA to hold a hearing on the CRB report by
September 1, 2010. In order to meet these requirements, the CBA
anticipates it would need at least two additional meetings (likely
in May and in July). However the CRB has been unable to issue the
Report as originally anticipated due to a backlog of priorities.
Therefore, it is important to amend the law to instead require the
CBA to hold the hearing within 6 months after the report is issued.
SUPPORT AND OPPOSITION:
SB 1490
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Support:
California Board of Accountancy
Opposition:
None received as of April 12, 2010
Consultant:G. V. Ayers