BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 1467|
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CONSENT
Bill No: SB 1467
Author: Senate Business, Professions and Economic Development
Committee
Amended: 5/1/14
Vote: 21
SENATE BUSINESS, PROF. & ECON. DEV. COMM. : 9-0, 4/28/14
AYES: Lieu, Wyland, Berryhill, Block, Corbett, Galgiani,
Hernandez, Hill, Padilla
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SUBJECT : Professions and vocations
SOURCE : Author
DIGEST : This bill makes several non-controversial, minor,
nonsubstantive or technical changes to various provisions within
the Business and Professions Code (BPC) relating to the
regulatory boards of the Department of Consumer Affairs (DCA).
ANALYSIS :
Existing law:
1.Contains the following provisions relating to the California
Board of Accountancy (CBA):
A. Prohibits a person from engaging in the practice of
public accountancy in California unless he/she holds either
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a valid certified public accountant (CPA) license issued by
CBA, or a practice privilege, as specified. An applicant
for registration must furnish satisfactory evidence that
the applicant is entitled to registration.
B. Establishes education, examination, and experience
requirements for a CPA license, and requires an applicant
to show that he/she has one year of qualifying experience.
Requires the experience to have been performed in
accordance with applicable professional standards, and to
be completed under the supervision or employ of a licensed
CPA, as specified.
C. Authorizes, until January 1, 2019, a CPA licensed in
another state to engage in the practice of public
accountancy in California under a practice privilege
without obtaining a California CPA license, as specified.
CPAs who hold a practice privilege must notify CBA of any
pending criminal charges, other than a minor traffic
violation, in any jurisdiction in which they practice.
D. Authorizes CBA to suspend an individual's practice
privilege right by an order issued by CBA or its executive
officer, without prior notice or hearing, in order to
conduct a disciplinary investigation concerning the
individual's competence or qualifications to practice under
a practice privilege. Requires CBA to consult the Public
Company Accounting Oversight Board (PCAOB) and the U.S.
Securities and Exchange Commission (SEC) on a six-month
basis to identify out-of-state licensees who may have
disqualifying conditions, or may be obliged to cease
practice.
1.Contains the following provisions relating to the Contractors
State License Board (CSLB):
A. Provides that persons employed as enforcement
representatives in the enforcement division within CSLB,
and designated by the Director of DCA, are not peace
officers and are not entitled to safety member retirement
benefits.
1.Contains the following provisions relating to the Board for
Professional Engineers, Land Surveyors and Geologists
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(BPELSG):
A. Provides for BPELSG to issue an engineer's license to an
engineer licensed in another state or country without a
written examination if the applicant's qualification is
equivalent to the requirements of California law. Provides
that an equivalent second division examination must be an
eight-hour written examination, as specified.
B. Authorizes BPELSG to issue a certification as a
petroleum geologist to a geologist that meets certain
requirements.
This bill:
1.Makes the following changes relating to CBA:
A. Authorizes CBA to collect, but not require, a valid
electronic mail (e-mail) address from applicants or those
renewing a license; provides that an e-mail address
collected by the CBA shall be treated as confidential; and
makes legislative findings and declarations that the
electronic addresses provided to CBA are confidential.
B. Authorizes CBA to, by regulation, allow experience in
academia to satisfy the one-year experience requirement for
a CPA license.
C. Clarifies that a CPA who is licensed in another state
and who holds and exercises a practice privilege in
California, must notify CBA in writing within 30 days of
any pending criminal charges.
D. Corrects a drafting error by moving the requirement that
CBA consult with the PCAOB and the SEC to practice
privilege requirements which are in effect only until
January 1, 2019.
1.Makes the following changes relating to CSLB:
A. Revises the existing provisions establishing a CSLB
enforcement division and makes technical, nonsubstantive
changes.
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1.Makes the following changes relating to BPELSG:
A. Updates the second division examination requirement for
professional engineers to delete the requirement that the
examination be an eight-hour examination.
B. Removes references to the obsolete title of "petroleum
geologist."
C. Corrects a drafting error.
Background
This bill is one of two "committee bills" authored by the Senate
Business, Professions and Economic Development Committee and is
intended to consolidate a number of non-controversial provisions
related to various regulatory programs and professions governed
by the BPC. Consolidating the provisions in one bill is
designed to relieve the various licensing boards, bureaus,
professions and other regulatory agencies from the necessity and
burden of having separate measures for a number of
non-controversial revisions.
Many of the provisions of this bill are minor, technical and
updating changes, while other provisions are substantive changes
intended to improve the ability of various licensing programs
and other entities to efficiently and effectively administer
their respective laws.
CBA . According to CBA, the vast majority of licensees have an
e-mail address and prefer e-mail communications. While the
e-mail addresses would never be used for sensitive
communications, it is anticipated that an e-mail list could be
used for communicating important and timely information
regarding a wide range of topics that could include urgent
legislation and regulation issues, problems with computer
systems, or other unforeseen emergencies, according to CBA.
CBA contends that allowing experience in academia to count
towards the general experience requirement for CPA licensure
would begin to bridge the gap between theory and practice by
allowing more accounting professors to obtain a CPA license.
Bringing practical experience into the classroom benefits
students, the accounting profession, and most importantly, the
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consumers of California.
This bill adds the phrases "in writing" and "within 30 days of
the date the individual has knowledge of such charges" to BPC
Section 5096. This change mirrors the wording and timeframe of
BPC Section 5063 which establishes reporting requirements for
licensees. In addition, Section 5096 (e) clarifies that it
applies only to those exercising the practice privilege in
California. Adding the timeframe will eliminate the possibility
of practice privilege holders putting off notifying CBA of
pending criminal charges which will assist CBA in protecting the
consumers of California. It will also avoid unnecessary
reporting by those who never intend to practice in California,
according to CBA.
CSLB . According to CSLB, in 2012 the CSLB sponsored legislation
(AB 2554, Berryhill, Chapter 85) which provided all CSLB
enforcement representatives with the authority to issue a notice
to appear for misdemeanor violations of the Contractors State
License Law. This proposal will further revise BPC Section
7011.4, as recommended by CSLB's legal counsel, to more clearly
provide that all CSLB enforcement representatives may issue a
written notice to appear (NTA).
BPELSG . BPELSG proposes removing the reference to an
"eight-hour" examination in BPC Section 6759, stating that since
BPELSG has changed how the examination is administered the
reference to the timeframe is no longer relevant. Since October
2011, BPELSG has utilized computer-based testing centers to
administer its licensing examinations. Examinations are offered
at a multitude of testing sites throughout the nation. BPELSG
states that the main purpose in developing and administering
exams is to test the examinees knowledge and experience. The
timeframe for administering the examination is not relevant,
according to BPELSG.
BPELSG states BPC Section 7842 has existed since the inception
of the Geology Act in 1968, but there has never been a known
consumer or industry need to provide for a separate
certification of petroleum geology. A professional geologist
license authorizes a person to perform petroleum geology, so a
separate certification appears to be redundant. This bill
removes the reference to that obsolete certification.
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FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 5/12/14)
Contractors State License Board
ARGUMENTS IN SUPPORT : The Contractors State License Board
writes that this bill provides that all CSLB enforcement
representatives may issue a written NTA which "will benefit
consumers and licensees by providing an opportunity to refer
more criminal complaints to prosecutors through NTAs."
MW:e 5/12/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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