BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 1490|
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THIRD READING
Bill No: SB 1490
Author: Senate Business, Professions and Economic
Development
Amended: 4/12/10
Vote: 27 - Urgency
SENATE BUS., PROF. & ECON. DEVEL. COMMITTEE : 7-0, 4/19/10
AYES: Negrete McLeod, Wyland, Aanestad, Correa, Oropeza,
Walters, Yee
NO VOTE RECORDED: Calderon, Florez
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SUBJECT : Professions and vocations
SOURCE : Author
DIGEST : This bill makes corrections and updates to prior
legislation relating to the practice of accountancy.
ANALYSIS :
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
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and whose principle place of business is not in this
state to practice public accountancy n 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.
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.
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5. 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.
Background
California Board of Accountancy . According to the 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 provides that certain provisions
relating to sunsetting the 120-hour pathway for CPAs will
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
Business and Professions Code Section 5096.12, and
clarifies that the amendment shall not be deemed an
amendment that invalidates the 120-hour pathway sunset in
2014.
SB 819 also requires the CBA to hold a hearing on the CRB
report by September 1, 2010. In order to meet these
requirements, the CBA anticipates it needs at least two
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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 six months after the report is
issued.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 5/4/10)
California Board of Accountancy
JJA:do 5/5/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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