BILL NUMBER: AB 431 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 31, 2011
INTRODUCED BY Assembly Member Ma
FEBRUARY 14, 2011
An act to amend Sections 5109 and 5134 of, and to add
Section Sections 5058.3 and 5070.1 to, the
Business and Professions Code, relating to accountancy, and making an
appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 431, as amended, 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 , or, commencing on a specified date, delinquent
. 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 require the holder of a retired license to
adhere to certain restrictions on the use of accountancy and other
references. The bill would authorize
require 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 5058.3 is added to the
Business and Professions Code , to read:
5058.3. The holder of a retired license issued by the board
pursuant to Section 5070.1, when lawfully using the title "certified
public accountant," the CPA designation, or any other reference that
would suggest that the person is licensed by the board on materials
such as correspondence, Internet Web sites, business cards,
nameplates, or name plaques, shall place the term "retired"
immediately after that title, designation, or reference.
SECTION 1. SEC. 2. 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) Beginning one year from the effective date of the regulations
adopted pursuant to subdivision (a), if an applicant's permit is
delinquent, the board shall deny an applicant's application for a
retired status license.
(d)
(e) The board may shall
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)
(f) A retired status license shall not be subject to
any renewal requirements.
(f)
(g) The board may shall
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. SEC. 3. 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. SEC. 4. 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).
(i) The delinquency fee shall be 50 percent of the accrued renewal
fee.
(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.
(k) (1) 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) 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).
(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).
(m) The board shall fix the fees in accordance with the limits of
this section and 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.
(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.