BILL ANALYSIS Ó
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|Hearing Date:April 16, 2012 |Bill No:SB |
| |1405 |
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SENATE COMMITTEE ON BUSINESS, PROFESSIONS
AND ECONOMIC DEVELOPMENT
Senator Curren D. Price, Jr., Chair
Bill No: SB 1405Author:De Leon
As Amended:April 10, 2012 Fiscal:Yes
SUBJECT: Accountancy: military service: inactive service.
SUMMARY: Beginning January 1, 2014, authorizes a certified public
accountant to apply to have his or her permit placed in a military
inactive status if the applicant is engaged in active duty as a member
of the California National Guard or the United States Armed Forces, as
specified.
Existing law:
1)Licenses and regulates some 80,000 certified public accountants
(CPAs) and public accountants (PAs) under the Accountancy Act by the
California Board of Accountancy (Board) within the Department of
Consumer Affairs (DCA).
2)Authorizes any Board or bureau within the DCA to establish, by
regulation, a system for an inactive license category for persons
not actively engaged in practice, subject to certain provisions,
including: (BPC § 462)
3)Establishes fees for the renewal of a CPA license. (BPC § 5134)
4)Requires each licensee to complete specified continuing education
requirements as condition of license renewal. (BPC § 5027)
5)Requires each CPA firm to undergo a peer review at least every three
years as a condition of registration renewal. (BPC § 5076)
6)Authorizes any licensee whose license expired while he or she was on
active duty as a member of the California National Guard or the
United States Armed Forces to reinstate his or her license without
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examination or penalty if certain requirements are met. (BPC § 114)
This bill:
1)Authorizes, beginning January 1, 2014, a CPA or PA to apply to have
his or her permit placed in a military inactive status if the
applicant is engaged in active duty as a member of the California
National Guard or the United States Armed Forces.
2)Requires the Board to deny an application for a military inactive
status the applicant's permit is canceled, suspended, revoked, or
otherwise restricted or subject to disciplinary action by the Board.
3)Prohibits a holder of a military inactive status permit from engaging
in any activity for which a permit is required.
4)Exempts the holder of a permit in a military inactive status from all
of the following:
a) Payment of the biennial renewal fee.
b) Continuing education requirements.
c) Peer review requirements.
1)Establishes criteria to convert a permit from military inactive
status to active status prior to discharge from active duty in the
California National Guard or the United States Armed Forces. The
person must:
a) Pay the current biennial renewal fee.
b) Meet continuing education requirements prescribed by the
Board.
c) Meet peer review requirements prescribed by the Board.
1)Requires a military inactive status permit holder, within one year
from his or her discharge from active duty in the California
National Guard or the United States Armed Forces, to do all of the
following:
a) Provide evidence to the Board of the discharge date.
b) Pay the current biennial renewal fee.
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c) Meet continuing education requirements prescribed by the
Board.
d) Meet the peer review requirements prescribed by the Board.
1)Authorizes the Board to adopt regulations as necessary to administer
the above provisions.
2)Requires the military inactive permit, when using the title certified
public accountant, CPA, or any other reference suggesting licensure
by the Board, on correspondence, Internet Websites, business cards,
nameplates, or name plaques, must place the term "military inactive"
immediately after that title or designation.
FISCAL EFFECT: Unknown. This bill has been keyed "fiscal" by
Legislative Counsel.
COMMENTS:
1. Purpose. This bill is sponsored by the Author to exempt a
certified public accountant or a public accountant from the
biennial renewal fee while the permit holder is engaged in
full-time training or active service in the California National
Guard, United States Army, Navy, Air Force, or Marine Corps.
According to the Author, currently certified public accountants or
public accountants are required to pay the biennial fee for the
renewal of each of the permits to engage in the practice of public
accountancy, an amount up to $250.
The Author states that CPAs who are engaged in full-time training or
active service in the
U.S. Army, Navy, Air Force, or Marine Corps cannot practice
accountancy and should not be burdened with the cost of licensing
when they indeed cannot practice and are actively engaged in
military service. Current law does not provide exemptions for
military service, and the Author states that this bill addresses
the issue.
2.Background. An existing provision of the Business and Professions
Code authorizes a member of the California National Guard or the
U.S. Armed Forces to reinstate his or her professional license or
registration without examination or penalty if the license expires
while the licensee or registrant was on active duty. Any licensee
or registrant who continues to practice that profession, either
part-time or full-time, must maintain an active license in good
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standing, even while serving in the military.
3.Physician and Surgeon Exemption. The Business and Professions Code
exempts medical doctors from the requirement to pay the renewal fee
while engaged in full-time training or active service in the Army,
Navy, Air Force, or Marines, or in the United States Public Health
Service. Those exempted from the renewal fee are prohibited from
engaging in any private practice and must pay the fee after
discharge from full-time active service.
4.Related Legislation. AB 1588 (Atkins) requires boards under the DCA
to waive license renewal fees and continuing education requirements
for any professional licensee who is a reservist called to active
duty as a member of the U.S. Reserve or the California National
Guard. This bill is currently on the Assembly Appropriations
Committee suspense file.
SB 1236 (Price), among other things, exempts a licensed physician from
the payment of the renewal fee while engaged in full-time training
or active service in the Army, Navy, Air Force, or Marines, or in
the United States Public Health Service. This bill will be heard by
the BP&ED Committee on April 23.
AB 1666 (Frommer, Chapter 345, Statutes of 2005) required the State Bar
to waive the membership fees of any attorney in good standing for
the duration of his or her military service when written proof of
military service is provided to the State Bar.
SUPPORT AND OPPOSITION:
Support : None received as of April 10, 2012
Opposition : None received as of April 10, 2012
Consultant:G. V. Ayers