What's so important about CPA Day at the Capitol? It's an opportunity to
"influence the future of the profession in California," says Bruce
Allen, CalCPA director of government relations.
Gov. Brown Signs Retired License Legislation for CPAs
Oct. 3, 2011—Gov. Jerry Brown has signed Assembly Bill 431 by Assemblymember and CalCPA member Fiona Ma, CPA. The California Board of Accountancy-sponsored retired status bill, which received unanimous and bipartisan support throughout the legislative process, would authorize the CBA to establish a retired status for CPAs. CalCPA supports AB 431 and asserts that a retired status license provided by this bill will accurately reflect the good standing of CPAs who have chosen to retire from the profession. The CBA will begin to implement the provisions of AB 431 In the coming months and set up a system for a retired status license.
Read the full language and stay up to date on AB 431.
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Sept. 1, 2011—AB 431 by Assemblymember and CalCPA member Fiona Ma, CPA has one more legislative step before heading to the governor’s desk. AB 431, the CBA's retired status bill, has received strong, bipartisan support thus far in the legislative process and the support is expected to continue as it waits for a final legislative approval by the Assembly.
The bill would authorize the CBA to establish a retired license for CPAs. CalCPA supports AB 431 and asserts that the retired status license provided by this bill will accurately reflect the good standing of CPAs who have chosen to retire from the profession.
AB 431 is on the Assembly Floor awaiting concurrence of amendments taken in the Senate. It will then move to the governor’s desk.
Read the full language and stay up to date on AB 431.
CalCPA’s Bill to Implement 150 Hours Ethics Requirement Signed by Governor
Nov. 22, 2011—The CBA voted to clarify a provision of the new educational requirements for CPA licensure in California, which are scheduled to take effect Jan. 1, 2014.
The CBA decided that under the new regulations, if a student has four units in internships or independent studies that they wish to apply to the new 20-unit requirement, those units must have been in accounting subjects or business subjects as specified in the CBA’s existing regulations.
The new language will be made available for public comment for a period of 15 days before being finalized into the regulation. Once approved by the Department of Consumer Affairs, the State and Consumer Services Agency and the Office of Administrative Law, the new language would be part of the new education requirements for obtaining a California CPA license beginning Jan. 1, 2014.
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Sept. 26, 2011—Gov. Jerry Brown today signed Senate Bill 773 by Sen. Gloria Negrete-McLeod. This CalCPA-sponsored bill is an important step in implementing the requirements for the 150-hour mandate set in place last year.
The CBA has been deliberating to determine the subjects that will meet the requirements for the 20 units of accounting and business related education and 10 units of ethics education on the requirements for qualifying coursework needed for CPA licensure after Jan. 1, 2014.
SB 773 will implement the ethics education portion. Candidates for licensure after Jan. 1, 2017 will all be required to have a 3 semester or 4 quarter unit course in accounting ethics along with other subjects that would fill the overall 10 unit ethics education requirement.
After Jan. 1, 2014, but prior to Jan. 1, 2017, candidates may fulfill the 10 units by taking a variety of courses—some of which are already required as part of the general education requirement. Candidates sitting for the exam will still only be required to have completed a bachelor’s degree with 24 semester units in accounting and 24 semester units in business.
Additional information on the specific courses is available on the CBA website.
Sept. 1, 2011—The legislative year started off with a number of legislative bills targeting the financial management and auditing of cities, counties, redevelopment agencies, and other municipalities. The response came from high-profile instances of fiscal malfeasance by some California municipal governments. However, as the legislative session unfolded, many of the bills have stalled or have been amended into another subject.
Only Senate Bill 450 by Senator Lowenthal remains on pace to make it to the Governor’s Office. SB 450 (Lowenthal) would reform the way redevelopment agencies spend their Low and Moderate Income Housing Funds by implementing more strict requirements and providing for State Controller oversight of the firms performing redevelopment agency audits.
While others are still viable, they will not be passed this year. SB 450 is on the Assembly Floor and will likely go to the Governor before the Interim Recess. CalCPA is working with the author and all interested parties to ensure that CPAs who perform municipal audits are not unfairly affected as these proposals move through the legislative process.
Read the full language and stay up to date on SB 450.
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Due to high-profile instances of fiscal malfeasance by some California municipal governments, the California Controller and the Legislature have introduced a number of pieces of legislation aimed at correcting many of these perceived local government concerns. Some of the legislation, if passed, would affect the auditing process of local governments and the requirements of auditors who work in this area.
AB 229 (Lara) would increase state controller oversight of independent auditors. AB 229 would require audit partner rotation every six years and establish a list of “approved” auditors, as well as provide for suspension from the list and referral to the California Board of Accountancy if a review of the firm’s audit work papers found deficiencies.
AB 253 (Smyth) would prescribe uniform city accounting procedures.
SB 186 (Kehoe) would grant the state controller the ability to conduct audits or investigations of any local government.
SB 449 (Pavley) would authorize the state controller to conduct preliminary reviews of any local agency facing a fiscal crisis and create a multidisciplinary fiscal “SWAT team” to provide expertise with fiscal advice, management assistance and auditing skills to local agencies.
AB 276 (Alejo) would increase fines for local government entities that fail to file timely financial reports with the state controller.
AB 187 (Lara) would allow the Bureau of State Audits to conduct audits of high-risk local governments.
The state controller is also co-sponsoring legislation targeting redevelopment agencies.
SB 450 (Lowenthal) would reform the way redevelopment agencies spend their Low and Moderate Income Housing Funds by implementing more strict requirements.
AB 330 (Norby) would establish specific procedures for the Department of Housing and Community Development, the Attorney General and the courts for handling a major audit violation by redevelopment agencies. The bill would also instruct the state controller to conduct quality control reviews of independent financial audit reports.
CalCPA is working with the Legislature and all interested parties to ensure that CPAs who perform municipal audits are not unfairly affected as these proposals move through the legislative process.
Check out Capitol Track for more information on these important issues.
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Stepping up for the Profession
Several California Congressional representatives, including CalCPA member John Campbell, co-signed a letter to U.S. Treasury Secretary Timothy Geithner expressing their concerns with the IRS tax return preparer registration proposal. Read their letter.
