BILL ANALYSIS �
AB 431
Page 1
ASSEMBLY THIRD READING
AB 431 (Ma)
As Amended March 31, 2011
Majority vote
BUSINESS & PROFESSIONS 9-0
APPROPRIATIONS 17-0
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|Ayes:|Hayashi, Bill Berryhill, |Ayes:|Fuentes, Harkey, |
| |Allen, | |Blumenfield, Bradford, |
| |Butler, Eng, Hagman, | |Charles Calderon, Campos, |
| |Hill, Ma, Smyth | |Davis, Donnelly, Gatto, |
| | | |Hall, Hill, Lara, |
| | | |Mitchell, Nielsen, Norby, |
| | | |Solorio, Wagner |
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SUMMARY : Authorizes the California Board of Accountancy
(Board) to establish a retired status license for certified
public accountants (CPAs) and public accountants (PAs).
Specifically, this bill :
1)Authorizes the Board to establish, by regulation, a system for
the placement of a license on a retired status, upon
application, for CPAs and PAs who are not actively engaged in
the practice of public accountancy or any activity that
requires them to be licensed by the Board.
2)Prohibits a retired status licensee from engaging in any
activity for which a permit is required.
3)Requires the Board to deny an application for a retired status
license if the applicant's permit is canceled or if the permit
is suspended, revoked, or otherwise punitively restricted by
the Board or subject to disciplinary action.
4)Requires, beginning one year from the effective date of the
Board's regulations for placing a license on retired status,
the Board to deny an application for a retired status license
if the applicant's permit is delinquent.
5)Requires the Board to establish minimum qualifications for a
retired status license that may include, but are not limited
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to, a minimum age requirement and minimum years as a licensee.
6)Exempts a retired status license from any renewal
requirements.
7)Requires the Board to 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 (CE) and payment of a
fee, as specified.
8)Provides that the placement of a license on a retired status
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.
9)Provides for the following fees to be fixed by the Board: the
application fee for a retired status license, at $250 or less;
and, the application fee for restoration of a retired status
license to active status, at $1,000 or less.
10)Requires retired license holders, 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, to place the term "retired" immediately after that
title, designation, or reference.
11)Makes clarifying and technical changes.
EXISTING LAW regulates the practice of public accountancy under
the California Accountancy Act by the Board within the
Department of Consumer Affairs, requires persons licensed by the
Board to complete specified CE requirements to maintain an
active license, and sets various examination, certification,
registration, and renewal fees for licensure.
FISCAL EFFECT : According to Assembly Appropriations Committee,
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
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licensure status who otherwise would allow their licenses to
expire, this bill may increase fee revenues by a small amount.
COMMENTS : According to the author's office, "?CPAs & 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 "cancel" or "surrender"
their license.
"Accountants who have practiced for many years are very proud of
their profession and believe a 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."
CPAs are Board certified, while PAs register with the Board.
Both designations must hold a valid permit for the practice of
public accountancy. Both must also pay license renewal fees and
fulfill CE requirements.
The Board offered a retired designation for CPAs and PAs in
1994, but discontinued the designation after abuse by some
licensees attempting to skirt disciplinary action or avoid
paying license renewal fees. The Board legislatively repealed
the program in 1998. However, those in the profession have been
requesting a reinstatement of the designation.
Currently, CPAs and PAs who retire must continue paying renewal
fees to maintain a license in good standing, voluntarily
surrender their license, or stop paying renewal fees, which
leads to a delinquent status and eventual cancellation.
Analysis Prepared by : Angela Mapp / B.,P. & C.P. / (916)
319-3301
FN: 0000510