BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 431
                                                                  Page  1

          Date of Hearing:   May 4, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                      AB 431 (Ma) - As Amended:  March 31, 2011 

          Policy Committee:                              Business and 
          Professions  Vote:                            9 - 0 

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              

           SUMMARY  

          This bill authorizes the California Board of Accountancy (Board) 
          to establish a retired status license for certified public 
          accountants (CPAs) and public accountants (PAs).  Provides for 
          the following fees to be fixed by the board: 

          1)The application fee for a retired status license, at $250 or 
            less.

          2)The application fee for restoration of a retired status 
            license to active status, at $1,000 or less.


           FISCAL EFFECT  

          Unknown, likely minor impacts on special fund fee revenues. If 
          retirees shift from on-going, annual licensure renewal fees to 
          the one-time reduced fee established in this bill, there will be 
          minor revenue losses. If this bill brings retirees into 
          licensure status who otherwise would allow their licenses to 
          expire, this bill may increase fee revenues by a small amount. 

           COMMENTS  

           Purpose  . According to the author's office, CPAs and PAs who want 
          to retire from the profession, must either pay a renewal fee for 
          an inactive license, or allow their license to expire (and thus 
          become delinquent), and then surrender their license. 

          The author asserts that, "Accountants who have practiced for 
          many years are very proud of their profession and believe a 








                                                                  AB 431
                                                                  Page  2

          delinquent, cancelled, or surrendered status is undignified and 
          try to avoid it.  However, many retired licensees who simply 
          want to stop paying for the active/inactive license fee have no 
          other choice." 

          This bill would allow CPAs and PAs to obtain a retired status 
          license, which allows them to maintain a connection with their 
          prior profession. 




           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916) 
          319-2081