AB 431 Assembly Bill

BILL NUMBER: AB 431	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Ma

                        FEBRUARY 14, 2011

   An act to amend Sections 5109 and 5134 of, and to add Section
5070.1 to, the Business and Professions Code, relating to
accountancy, and making an appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 431, as introduced, Ma. Retired public accountants.
   Existing law provides for the issuance of permits to practice
public accountancy to certified public accountants and public
accountants and for the regulation of these accountants by the
California Board of Accountancy.
    Existing law authorizes a permit holder to have his or her
license placed in an inactive status subject to certain limitations.
Existing law imposes initial fees and renewal fees for these permits
and for the inactive status and directs the deposit of these fees
into the Accountancy Fund, from which funds other than penalty
revenue are continuously appropriated.
   This bill would authorize the board to establish, by regulation, a
system for the placement of a license on a retired status, upon
application, for those accountants who are not actively engaged in
the practice of public accountancy or any activity which requires
them to be licensed. The bill would require the board to deny an
application for a retired status license if the applicant's permit is
canceled, suspended, revoked, or otherwise restricted. The bill
would prohibit the holder of a retired status license from engaging
in any activity for which a permit is required. The bill would
authorize the board to establish minimum qualifications for the
restoration of a retired status license to active status, including,
but not limited to, continuing education and the payment of a fee.
The bill would provide for that application fee for a retired status
license and for the restoration of a retired status license to active
status to be fixed by the board in an amount not to exceed $250 and
$1,000, respectively. By increasing that part of the revenue in the
Accountancy Fund that is continuously appropriated, the bill would
make an appropriation.
   Existing law prohibits the expiration, cancellation, forfeiture,
or suspension of a license from depriving the board of jurisdiction
to commence or proceed with any investigation of or action or
disciplinary proceeding against a licensee, or to render a decision
suspending or revoking the license.
   This bill would additionally specify that the current status of a
retired status license shall not deprive the board of the
above-described jurisdiction.
   Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 5070.1 is added to the Business and Professions
Code, to read:
   5070.1.  (a) The board may establish, by regulation, a system for
the placement of a license on a retired status, upon application, for
certified public accountants and public accountants who are not
actively engaged in the practice of public accountancy or any
activity which requires them to be licensed by the board.
   (b) No licensee with a license on a retired status shall engage in
any activity for which a permit is required.
   (c) The board shall deny an applicant's application for a retired
status license if the permit is canceled or if the permit is
suspended, revoked, or otherwise punitively restricted by the board
or subject to disciplinary action under this chapter.
   (d) The board may establish minimum qualifications for a retired
status license which may include, but are not limited to, a minimum
age requirement and minimum years as a licensee.
   (e) A retired status license shall not be subject to any renewal
requirements.
   (f) The board may establish minimum qualifications for the
restoration of a license in a retired status to an active status.
These minimum qualifications shall include, but are not limited to,
continuing education and payment of a fee as provided in subdivision
(h) of Section 5134.
  SEC. 2.  Section 5109 of the Business and Professions Code is
amended to read:
   5109.  The expiration, cancellation, forfeiture, or suspension of
a license, practice privilege, or other authority to practice public
accountancy by operation of law or by order or decision of the board
or a court of law,  the placement of a license on a retired
status,  or the voluntary surrender of a license by a licensee
shall not deprive the board of jurisdiction to commence or proceed
with any investigation of or action or disciplinary proceeding
against the licensee, or to render a decision suspending or revoking
the license.
  SEC. 3.  Section 5134 of the Business and Professions Code is
amended to read:
   5134.  The amount of fees prescribed by this chapter is as
follows:
   (a) The fee to be charged to each applicant for the certified
public accountant examination shall be fixed by the board at an
amount not to exceed six hundred dollars ($600). The board may charge
a reexamination fee not to exceed seventy-five dollars ($75) for
each part that is subject to reexamination.
   (b) The fee to be charged to out-of-state candidates for the
certified public accountant examination shall be fixed by the board
at an amount not to exceed six hundred dollars ($600) per candidate.
   (c) The application fee to be charged to each applicant for
issuance of a certified public accountant certificate shall be fixed
by the board at an amount not to exceed two hundred fifty dollars
($250).
   (d) The application fee to be charged to each applicant for
issuance of a certified public accountant certificate by waiver of
examination shall be fixed by the board at an amount not to exceed
two hundred fifty dollars ($250).
   (e) The fee to be charged to each applicant for registration as a
partnership or professional corporation shall be fixed by the board
at an amount not to exceed two hundred fifty dollars ($250).
   (f) The board shall fix the biennial renewal fee so that, together
with the estimated amount from revenue other than that generated by
subdivisions (a) to (e), inclusive, the reserve balance in the board'
s contingent fund shall be equal to approximately nine months of
annual authorized expenditures. Any increase in the renewal fee shall
be made by regulation upon a determination by the board that
additional moneys are required to fund authorized expenditures and
maintain the board's contingent fund reserve balance equal to nine
months of estimated annual authorized expenditures in the fiscal year
in which the expenditures will occur. The biennial fee for the
renewal of each of the permits to engage in the practice of public
accountancy specified in Section 5070 shall not exceed two hundred
fifty dollars ($250). 
   (g) The application fee to be charged to each applicant for a
retired status license, as described in Section 5070.1, shall be
fixed by the board at an amount not to exceed two hundred fifty
dollars ($250).  
   (h) The application fee to be charged to each applicant for
restoration of a license in a retired status to an active status
pursuant to subdivision (f) of Section 5070.1 shall be fixed by the
board at an amount not to exceed one thousand dollars ($1,000). 

   (g) 
    (i)  The delinquency fee shall be 50 percent of the
accrued renewal fee. 
   (h) 
    (j)  The initial permit fee is an amount equal to the
renewal fee in effect on the last regular renewal date before the
date on which the permit is issued, except that, if the permit is
issued one year or less before it will expire, then the initial
permit fee is an amount equal to 50 percent of the renewal fee in
effect on the last regular renewal date before the date on which the
permit is issued. The board may, by regulation, provide for the
waiver or refund of the initial permit fee where the permit is issued
less than 45 days before the date on which it will expire. 
   (i) 
   (k)  (1)  On and after the enactment of Assembly
Bill 1868 of the 2005-06 Regular Session, the   The
   annual fee to be charged an individual for a
practice privilege pursuant to Section 5096 with an authorization to
sign attest reports shall be fixed by the board at an amount not to
exceed one hundred twenty-five dollars ($125).
   (2)  On and after enactment of Assembly Bill 1868 of the
2005-06 Regular Session, the   The  annual fee to
be charged an individual for a practice privilege pursuant to Section
5096 without an authorization to sign attest reports shall be fixed
by the board at an amount not to exceed 80 percent of the fee
authorized under paragraph (1). 
   (j) 
    (l)  The fee to be charged for the certification of
documents evidencing passage of the certified public accountant
examination, the certification of documents evidencing the grades
received on the certified public accountant examination, or the
certification of documents evidencing licensure shall be twenty-five
dollars ($25). 
   (k) 
    (m)  The board shall fix the fees in accordance with the
limits of this section and  , on and after July 1, 1990,
 any increase in a fee fixed by the board shall be pursuant
to regulation duly adopted by the board in accordance with the limits
of this section. 
   (l) 
    (n)  It is the intent of the Legislature that, to ease
entry into the public accounting profession in California, any
administrative cost to the board related to the certified public
accountant examination or issuance of the certified public accountant
certificate that exceeds the maximum fees authorized by this section
shall be covered by the fees charged for the biennial renewal of the
permit to practice.