AB 3251

Bill Subjects

Abstract

Existing law establishes the California Board of Accountancy, which is within the Department of Consumer Affairs, and requires the board to license and regulate accountants in this state. Existing law authorizes the board to appoint an executive officer, as specified. Existing law repeals these provisions on January 1, 2025. This bill would extend the repeal date for the above-described provisions until January 1, 2029. Existing law requires an application to meet specified education, examination, and experience requirements to be qualified for licensure as a certified public accountant, including, except as specified, completion of a baccalaureate or higher degree conferred by a degree-granting university, college, or other institution of learning accredited by a regional or national accrediting agency included in a list of these agencies published by the United States Secretary of Education under specified federal law. This bill would instead require the university, college, or other institution of learning be accredited by an accrediting agency included in a list of these agencies published by the United States Secretary of Education under specified federal law. Existing law authorizes an applicant for licensure as a certified public accountant to demonstrate compliance with the above-described educational requirement if the applicant's institution mails the applicant's official transcript or its equivalent together or separately with a signed letter, as specified. This bill would instead authorize compliance to be demonstrated if the applicant's institution sends electronically or provides the applicant's official transcript or its equivalent together or separately with a signed letter, as specified. Existing law authorizes the board to prescribe, amend, or repeal rules of professional conduct by regulation, as specified. Existing law requires the board to mail a copy of the rules to every licensee at least 30 days before public hearing on the rules. This bill would instead require the board to provide a copy of the rules to every licensee at least 30 days before public hearing on the rules. Existing law requires a firm, in order to renew its registration in an active status or convert to an active status, to have a peer review report of its accounting and auditing practice accepted by a board-recognized peer review program, as specified. This bill would require a board-recognized peer review program to utilize a secure web-based application to provide the board with objective information and data relating to the progress, participation, and results of a peer review and would require a firm to participate in the secure web-based application, as specified. Existing law authorizes the board to establish a system for the placement of a license into a retired status, as specified. Existing law requires the board to deny an application to place a license in a retired status if the permit is subject to an outstanding order of the board, is suspended, revoked, or otherwise punitively restricted by the board, or is subject to disciplinary action. This bill would instead require the board to deny an application if the permit is subject to an outstanding order of the board, is suspended, revoked, or is subject to disciplinary action. The bill would specify that a permanent restricted practice order is not an outstanding order of the board for purposes of this requirement if the licensee has completed probation as part of any original disciplinary order. The bill would require a permanent restricted practice order to be reinstated if the license is restored from retired status to an active status, as specified. Existing law requires a licensee to complete a minimum of 500 hours of experience in attest services to be authorized to sign reports on attest engagements. This bill would specify that, for purposes of an enforcement action taken by the board, the licensee owners of an accounting firm are held to the same level of responsibility as a licensee that performs an attest engagement if an accounting firm provides attestation services and the licensee owners of the firm are not authorized to sign reports on attest engagements. The bill would also require an accounting firm to make all working papers available to a licensee who signed a report on an attest engagement if the licensee is no longer employed by the accounting firm, as specified. Existing law generally prohibits the practice of public accountancy in the state unless the person holds a valid permit to practice public accountancy issued by the board or holds a practice privilege, except as specified. Existing law, until January 1, 2011, specifies that these provisions do not prohibit a certified public accountant, a public accountant, or a public accounting firm lawfully practicing in another state from temporarily practicing in this state incident to practice in another state, subject to certain conditions and limitations. This bill would delete the above-described obsolete provisions and would make conforming changes. Existing law, on or before July 1, 2014, requires the board to convene a stakeholder group to consider whether existing law on the regulation of accountancy in this state is consistent with the board's duty to protect the public, as specified. This bill would delete the above-described obsolete provision.