California CPA Mobility – The California Legislature passed Senate Bill 795 which modified the laws that govern CPA’s practice within California by those that are licensed outside the state.
Existing law provides for the licensure and regulation of the practice of accountancy by the California Board of Accountancy within the Department of Consumer Affairs.
(1) Existing law, until January 1, 2019, authorizes an individual whose principal place of business is not in this state and who has a valid and current license, certificate, or permit to practice public accountancy from another state to engage in the practice of public accountancy in this state under a practice privilege without obtaining a certificate or license, if certain conditions are met.
Related provisions of existing law, until January 1, 2019, specifically address the denial, revocation, or administrative suspension of practice privileges and the authority of an individual with a practice privilege to sign attest reports.
Existing law, until January 1, 2019, requires the board to add specified content on out-of-state licensees to its Internet Web site. Existing law suspends, until January 1, 2019, certain provisions relating to the enforcement of practice privileges and notification of intent to practice under such a privilege.
Existing law also suspends until January 1, 2019, a condition that makes the operation of practice privilege provisions contingent on a specified appropriation in the annual Budget Act to fund them.
Existing law prohibits a person from engaging in the practice of accountancy as a partnership unless the partnership is registered with the board and meets specified requirements.
Existing law, until January 1, 2019, authorizes a partnership registered to provide certain services through an individual who qualifies for the practice privilege to meet those requirements.
This bill would delete the repeal provisions, thereby extending indefinitely the operation of the above-specified provisions relating to practice privileges indefinitely.
(2) Existing law, until January 1, 2019, authorizes the board to make a determination based on specified factors about whether allowing individuals from a particular state to practice pursuant to a practice privilege violates the board’s duty to protect the public and requires the board, if it makes such a determination, to submit a notification form and pay specified fees.
Existing law provides that, if a state has in place and is operating pursuant to best practice guidelines adopted by the National Association of State Boards of Accountancy, no practice privilege form is required, subject to specified requirements.
This bill would delete the repeal provisions, thereby extending the operation of those provisions indefinitely. The bill would additionally require the board to consider the fact that a state has in place and is operating pursuant to enforcement practices substantially equivalent to the best practice guidelines adopted by the National Association of State Boards of Accountancy when making that determination and would provide a process for redeterminations based on these factors.
The bill, among other things, would also delete obsolete provisions relating to reporting and adopting emergency regulations.
(3) By increasing administrative fees deposited into the Accountancy Fund, a continuously appropriated fund, the bill would make an appropriation.
(4) By expanding the scope of an existing crime, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.