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What California’s Election Could Mean for CPAs 

California’s election brings a proposed billionaire wealth tax, new AI oversight measures and a host of other consequential ballot issues. Our recent Capitol Beat reviewed what these developments could mean for CPAs and taxpayers.

What California's Election Could Mean for CPAs

AI, Trust and the Future of Professional Services

While AI is transforming how professional services like banking, law and accounting work, technology isn’t eliminating the need for expertise, judgment and human connection. 

CalCPA Wins National Award for Transforming CPA Licensure

CalCPA has been recognized with a 2026 ASAE Power of Associations Silver Award for its advocacy efforts surrounding AB 1175, legislation that modernizes California's CPA licensure pathway.


CalCPA Earns National Award for Transforming CPA Licensure

Federal Tax Benefits to Help Clients Recruit, Retain Employees

Benefits don’t have to break the budget. From paid leave and student loans to child care, HSAs and retirement plans, federal tax breaks can help your clients build benefits packages that attract and retain talent.

Golden State wisdom straight from the experts

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CPAs: Making Sense of What Comes Next campaign

California’s November election is shaping up to be consequential for taxpayers, businesses and the accounting profession, with ballot measures addressing everything from a proposed billionaire wealth tax to voter identification, housing affordability and environmental regulations. 

Meanwhile, the state’s recently concluded legislative session produced significant developments in AI oversight and tax policy that could create new opportunities and challenges for CPAs.

CalCPA’s recent Capital Beat featured Jason Fox, CalCPA’s vice president of advocacy and public affairs, and Missy Johnson, director of government affairs at Nielsen Merksamer, who reviewed how California’s policy landscape is evolving rapidly, and the role CPAs play in shaping what comes next.

AI Oversight Creates Opportunities for CPAs

One of the legislative session’s most significant developments involved AI assurance and auditing. Following growing concerns about AI safety and the safeguards surrounding increasingly powerful systems, California enacted a package of bills establishing new oversight frameworks.

The legislation includes provisions for AI auditor registration, independent verification organizations to evaluate certain advanced AI systems, and safeguards governing interactions between AI chatbots and children and young adults.

For the accounting profession, the measures represent a potential expansion of assurance services. Regulators turned to the profession for guidance on existing CPA standards, including ethics, independence and internal controls, as policymakers developed the new frameworks.

CalCPA helped shape legislation intended to incorporate the profession’s established standards, and the conversation is expected to continue as lawmakers consider additional requirements for AI systems used in banking, financial services and other industries where automated decisions can significantly affect individuals.

Johnson noted that broader AI legislation remains unfinished business. A more expansive proposal addressing automated decision systems failed to advance, and lawmakers are expected to revisit the issue.

Tax Legislation Delivers a Win—and Leaves Questions

The legislative session also produced a notable victory for tax practitioners through AB 1519, a technical measure addressing California’s 20-year statute of limitations on tax liabilities. According to Fox, the existing language had allowed the Franchise Tax Board to interpret the limitation in ways that could effectively extend it indefinitely through additional interest, penalties and fees.

CalCPA supported efforts to clarify the statute, working alongside tax professionals who championed the change. The governor signed the bill, demonstrating how sustained professional advocacy can influence technical legislation with meaningful consequences for taxpayers and their advisers.

A more complicated development emerged from SB 122, part of the state budget package. The measure expanded sales-tax provisions affecting digital products and software-as-a-service (SaaS), while also limiting certain business tax credits.

The changes have generated questions across multiple industries. The original revenue estimate associated with the measure may significantly underestimate the amount ultimately collected, while the California Department of Tax and Fee Administration works through proposed regulations.

Johnson anticipates efforts to revisit aspects of the law, particularly its treatment of SaaS, research and development credits, and entertainment-industry incentives. CalCPA is encouraging members to share implementation concerns and practical examples that can inform future policy discussions.

The Wealth Tax Dominates the Ballot Debate

There’s no shortage of discussion on Proposition 40, a proposed one-time 5 percent tax on the net worth of Californians worth at least $1 billion. The measure’s proponents argue that the revenue would help offset federal funding reductions affecting health programs, including Medi-Cal.

Opposition, however, extends beyond the wealthy individuals who would pay the tax. Johnson described a coalition that includes prominent Democrats, labor organizations and other groups concerned about the proposal’s design and potential consequences.

Critics argue that a one-time revenue infusion would not resolve California’s underlying budget challenges. They also warn that wealthy residents could relocate, potentially reducing other state revenues. Questions about implementation, administration and whether the proceeds would necessarily be spent on their stated health-related purposes have added to the controversy.

CalCPA opposes Proposition 40, Fox explained, because of concerns about the tax framework and its practical implications for taxpayers, practitioners and tax administrators—not simply the question of whether wealthy individuals should pay more taxes.

The measure also intersects with Propositions 41 and 42. Proposition 41 would require performance audits of certain programs funded by special taxes, providing voters with more information about how public money is used. CalCPA supports that measure, citing its emphasis on accountability, transparency and efficient use of financial resources.

Proposition 42 would prohibit certain new taxes on personal property, including assets such as stocks and retirement accounts, and restrict specified retroactive taxes. Both measures contain provisions that could conflict with Proposition 40.

Fox explained that when ballot measures conflict, their relative vote totals can determine which provisions prevail. The resulting legal questions could leave the measures’ ultimate effects subject to court challenges, making this group of propositions particularly complex for voters.

Affordability, Development and Election Dynamics

Beyond the wealth-tax debate, the ballot features a range of policy questions that reflect California’s affordability concerns and competing views on government spending and regulation.

Proposition 37 would authorize additional bond funding for middle-income home loans, complementing earlier efforts to support housing affordability. Proposition 38 would authorize an $8 billion bond for immunology research, although there are questions about whether directing the funding to a single research entity represents the best use of public resources.

Other measures address voter identification, local tax approval thresholds, public campaign financing, health care clinic spending requirements and changes to the California Environmental Quality Act intended to affect development.

The number of propositions could create voter fatigue, Johnson cautioned, particularly when measures interact or contain complicated provisions. Campaign advertising, direct mail and social media messaging will further shape how voters understand the choices before them.

The governor’s race and the balance of power in Congress and the U.S. Senate also carry implications for California’s policy direction and the outcome could influence future debates over taxation, AI regulation and the state’s relationship with the federal government.

As the election season intensifies, Fox emphasized the importance of member engagement. CalCPA’s advocacy work depends on practitioners sharing their experiences, identifying unintended consequences and helping policymakers understand how proposed changes affect businesses and taxpayers.

As California confronts emerging technologies, evolving tax rules and difficult budget decisions, the profession can help ensure that public policy is informed by practical experience, sound standards and a clear understanding of its real-world effects.

 by registering and accessing the event in your Activities. And be a part of the next conversation on 

Artificial intelligence may be dominating conversations about the future of work, but for the leaders of California’s banking and legal industries, the bigger story is more complicated.

AI has set a lot of change in motion—from how work gets done to client expectations to new questions about talent, cybersecurity, access and trust.

Yet in all that change, one thing remains constant: people still want trusted experts who understand their individual needs.

That was one of the central themes of a recent CalCPA CEO Chat featuring Kevin Gould, president and CEO of the California Bankers Association, and Chris Nguyen, CEO of the California Lawyers Association, who covered the issues reshaping banking, law and the broader professional-services environment—and what those changes mean for the professionals and businesses they serve.

For Nguyen, AI and access to justice are among the most significant issues facing the legal profession. While technology has the potential to make legal information and routine services more accessible, it also introduces significant risks.

AI-generated misinformation, fabricated images and even fake video and audio are already creating new challenges. 

“AI is a tool, and it could be used for the betterment of the industry,” he said, noting that it could make routine processes faster and help standardize answers to common questions that could ultimately improve access to legal services.

Gould sees similar opportunities in banking, including fraud detection, document processing, data extraction and summarization.

Perhaps most significantly, technology could help smaller organizations compete with larger ones.

“I think the use of technology and artificial intelligence can provide a smaller entity with an opportunity to level the playing field against larger institutions,” Gould said. 

But neither leader suggested that organizations should simply automate and move on. Gould emphasized the importance of maintaining a human touch in the process, particularly in a highly regulated industry such as banking.

Technology May Change the Work—but Not the Need for People

One of the biggest questions surrounding AI is what it means for jobs.

Nguyen regularly hears concerns from law students and new graduates about whether AI will eliminate the entry-level work that traditionally provided young attorneys with an opportunity to learn the profession.

“There will still be a need for the work that they do,” Nguyen said. But the nature of that work will evolve, with less routine work and greater emphasis on specialized knowledge and expertise.

Gould sees a similar dynamic in banking. As technology handles more routine tasks, he said, that can free employees to take on more strategic and customer-facing responsibilities. Customers still want human interaction when they encounter complex situations or need help solving a problem, he added.

And opportunities for career advancement remain.

The banking industry, Gould noted, is still one “where you can still start as a teller and make your way into the C suite.”

The message for professionals is less about competing with technology and more about learning how to work alongside it.

Customers Want an Amazon Experience—But They Also Want Expertise

Technology has dramatically changed customer expectations. People increasingly want convenience, speed, fewer obstacles and the ability to compare options before making decisions.

Gould acknowledged that banking is responding with faster payments, quicker underwriting and greater digital access. But there is a limit to how far that model can go.

Nguyen described a growing challenge in the legal profession: clients can arrive with an abundance of information from social media and other online sources and assume that information makes them sophisticated consumers.

Sometimes it does. Sometimes it creates unrealistic expectations, as legal matters can be highly nuanced. Two clients with seemingly similar circumstances may require very different advice because of small differences in their situations.

Nguyen compared it to clothing: there is a difference between a tailored blazer and one bought off the rack.

That distinction highlights something technology can’t easily replicate: professional judgment tailored to the individual. Which leads directly to one of the most important words in the conversation: trust.

“For our respective industries, trust is fundamental. Full stop,” Gould said.

That trust is increasingly important as professionals and consumers navigate an overwhelming amount of information.

Nguyen said consumers can encounter information that may be accurate in one state but completely inapplicable in California—or may contain only a small amount of accurate information surrounded by misinformation.

Professional organizations, then, have to do more than react. They have to participate in the conversation.

Gould said organizations need to be proactive about telling their stories while also monitoring what is being said about them.

“You have to be proactive in telling the story,” he said. “And you also have to be very aware of what is being said on social media.”

Regulation Requires Engagement—and Education

Regulation was another common thread discussed, as Gould pointed to the continuing consolidation of the banking industry and the regulatory burden facing smaller institutions. He also emphasized the importance of regulatory certainty and cautioned against dramatic swings in regulatory philosophy.

For Nguyen, regulation is a necessary part of protecting the public, even when it creates additional costs and complexity.

Both leaders emphasized that professional associations have an important role to play in the process—not simply by advocating for their members, but by educating policymakers about the real-world consequences of proposed laws and regulations.

Nguyen described it as making sure policymakers have a “360” view of an issue, and that includes individual constituents, who can have a meaningful influence when they speak directly with their legislators.

Staying Engaged in a Fast-Moving Environment

Ultimately, the conversation returned to a simple message: professionals cannot afford to tune out.

The pace of technological, coupled with regulatory and economic change, makes engagement even more important.

For bankers, Gould said, staying informed about legislative and regulatory developments is critical, particularly in California, where ideas can move quickly from concept to law.

For emerging professionals, Nguyen emphasized another form of engagement: developing deep expertise.

As AI takes over more routine work, specialists who can provide sophisticated, individualized solutions may become increasingly valuable.

The future of banking and law, then, isn’t simply about humans versus machines. It’s about how professionals use technology while preserving the qualities that technology cannot easily reproduce: judgment, expertise, relationships and trust.

Those who remain curious, adaptable and engaged may find that the biggest challenge isn’t keeping up with change but learning how to make the most of it.

 by registering and accessing the event in your Activities. And be a part of the 

.—CalCPA has been awarded a 2026 ASAE Power of Associations Silver Award by the American Society of Association Executives (ASAE) for “Transforming CPA Licensure in California (AB 1175),” recognizing the organization’s leadership in modernizing California’s CPA licensure pathway while preserving the profession’s high standards. The award comes on the heels of CalCPA’s recognition by the Public Relations Society of America (PRSA) in fall 2025 for its “Making Sense of What Comes Next” campaign, further underscoring the association’s leadership in advancing and communicating about the future of the CPA profession. 

The ASAE Power of Associations Awards recognize associations that bring people together to solve complex challenges, strengthen professions and industries, and create lasting benefits for society. CalCPA was recognized for leading a broad coalition of legislators, regulators, educators, employers, and accounting professionals to advance 

, landmark legislation that expands pathways to CPA licensure while maintaining the integrity and public trust that define the CPA designation.

"Receiving this national recognition is a testament to what can be accomplished when an association brings people together around a shared purpose," said Denise LeDuc Froemming, president and CEO of CalCPA. "AB 1175 represents years of collaboration and advocacy to ensure California's CPA licensure model reflects the evolving needs of students, employers and the profession while continuing to uphold the high standards that protect the public. We're grateful to our members, volunteers, partners and policymakers who helped make this achievement possible."

"ASAE's Power of Associations Awards recognize the very best of what our community can accomplish," said Michelle Mason, FASAE, CAE, AAiP, president and CEO of ASAE. "This recognition honors organizations that don't simply advance their own missions—they bring people together to solve complex challenges, strengthen industries and professions, and create lasting benefits for society. CalCPA has demonstrated the vision, leadership and commitment to make a meaningful difference, and we are proud to recognize Transforming CPA Licensure in California (AB 1175) as one of this year's outstanding achievements."

The award underscores CalCPA's ongoing commitment to advancing the accounting profession through principled leadership, future-ready education and bold advocacy on behalf of current and future CPAs.

 is the largest state CPA society in the country, representing and supporting certified public accountants and related professionals in California.

Private investigators and forensic accountants do many of the same things, yet their roles are often misunderstood. They can both provide litigation support, locate assets, untangle complex fraud cases and Ponzi schemes, identify bad players or fraudsters, and document business and personal interrelationships. 

They follow the money and help identify fraudsters, unravel complex organizational structures, investment schemes, property ownership issues and a myriad of other business disputes. 

They also handle extremely sensitive personal issues involving high-profile and high-net-worth personalities, elders, divorcing couples and family situations. These investigations are frequently part of high stakes matters at the heart of a civil or criminal case.

Private investigators and forensic accountants often work together on the same case and have critical—and distinct—roles in piecing together the whole picture.

Similarities and Differences Between Private Investigators and Forensic Accountants

, which illustrates some of the similarities and differences between private investigators and forensic accountants. 

We interviewed several experienced professionals to gather their insights into the roles of a private investigator and a forensic accountant—and when both are needed.

 works in the Special Prosecutions Section of the Riverside County District Attorney’s Office. A forensic accountant, attorney and private investigator, he has a strong understanding of the various roles involved in conducting a complex financial fraud investigation.

“When building a case, there is a distinct division of labor between a private investigator and a forensic accountant. The main difference is that the investigator conducts recorded witness statements; they seek an admission. It is rare that a forensic accountant would conduct an interview. They might ask a perfunctory question, but the investigator is in control of the interview and responsible for preparing a written report, securing the recorded interview and ensuring the chain of custody. 

“The forensic accountant’s work is typically done in-house, while private investigators are primarily in the field, interviewing witnesses and getting search warrants related to trying to prove the case.

“The work of a forensic accountant is limited by the attorney’s willingness to subpoena all bank records. They are most effective when they can see where the money is going and trace it as it moves in and out of accounts. Private investigators have access to more tools to identify the interrelationships of people that show up on spreadsheets, canceled checks or vendor invoices.”

 is an attorney with Raines Feldman Littrell, LLP, where she focuses on insolvency law, fiduciary representation and fraud litigation. She’s also co-author of The Ponzi Book: A Legal Resource for Unraveling Ponzi Schemes, written with Hon. Steven Rhodes, runs The Ponzi Scheme blog and recently published Ponzi-Proof Your Investments: An Investor’s Guide to Avoiding Ponzi Schemes and Other Fraudulent Scams. 

“When the question is who, where or how, a private investigator is often the right lens. Their strength is gathering facts from the real world, not just from documents. Private investigators uncover behavior and facts in the field, while forensic accountants uncover patterns in the books. Private investigators excel at collecting real-world evidence; forensic accountants excel at interpreting financial evidence.” 

 is the founder and president of FVLS Consultancy. With four decades of experience as both a forensic accountant and a licensed private investigator, he has seen a confluence in the two disciplines over the years.

“To illustrate how these disciplines can become merged, we had a case about 20 years ago of mortgage fraud/house flipping. Using forensic accounting techniques, we determined the history of a house’s “valuation” that nearly tripled over 18 months. We contacted the person who performed each appraisal of the property, and it turned out he was a victim of identity theft, had nothing to do with the appraisals in question and his signature was forged on the appraisals. We determined through surveillance that in all these transactions there were only two people involved: the perpetrator and a crooked notary who turned out to be his daughter.”

Olivia Robinson: What I Do as a Licensed Private Investigator

All my work is confidential, and I always work with a signed agreement that clearly details the scope of work, deliverables, fees and due dates. My work product often comes from confidential and public sources.

Confidential sources include interviews with witnesses, interested parties or other professionals; proprietary databases; time/date-stamped video or photos; and title reports.

Public sources include court records; property records, recorded documents, social media, publications or newspapers, and ancestry records.

: The specifics of a case determine the type of investigative tools required. These can include the sources listed above as well as other types of investigators, such as cyber or crypto forensics, international sources and computer forensics. 

: As a private investigator, I typically work with forensic accountants when financial, accounting or tax issues are involved; we are being asked to determine if there are indicia of financial fraud or theft; we need to obtain financial, accounting or tax information, and where financial, accounting or tax records are available, a professional with financial expertise is needed to interpret them.

Forensic accountants will typically advise counsel to engage a private investigator when the numbers don’t make sense and additional interpretation is required; there are unexplained interrelationships; details are needed on specific individuals or entities to determine their role in a situation; there is a need for investigative tools only available to licensed private investigators; and there are special needs such as surveillance, blind interviews, locating parties or witnesses, international asset searches or investigations.

Christina Fung: What I Do as a Forensic Accountant 

I have a team of forensic accountants that may work with me on a case, depending on the assignment’s nature and complexity. Our engagement letter defines the scope of work, deliverables and fees. In some cases, we may be retained to serve as an expert witness, in which case our workpapers may be discoverable. 

As a forensic accountant, I primarily complete two main types of engagements: forensic investigations, in which we investigate alleged fraud or other misconduct, and litigation support, which may include providing privileged consulting, calculating economic damages, serving as an expert witness or serving as an independent neutral accountant.

Sources of Information Used by Forensic Accountants

Our analysis is typically guided by the underlying financial records and relevant contracts. Additional sources can be used to fill in gaps or provide explanations for information that is either missing or does not make sense based on the review of the financial records alone. 

Attorneys often play a critical role in directing an investigation as well, and their work product is generally privileged. This provides clients with an advantage, as it protects disclosure to unwelcome parties.

Complex investigations rarely fit neatly into a single discipline. Whether the matter involves suspected fraud, investment disputes, hidden assets or other issues leading to litigation, the strongest outcomes can come from combining financial expertise with real-world investigative intelligence. 

Forensic accountants follow the money, and private investigators uncover the facts behind it. And in many cases, together, they provide a more complete understanding of what happened, who was involved and where risks or opportunities may exist. 

Uncovering the Whole Picture 

Christina Fung, vice chair of the Economic Damages Section of CalCPA's Forensic Services Section, and licensed investigator Olivia Robinson explain how and why complex cases often require both types of professionals.

As the business environment quickly changes, CPAs are increasingly being called upon to help clients make sense of it.

With AI transforming how companies operate, inflation and interest rates influencing business decisions, tariffs creating uncertainty for some industries and California’s changing regulatory and tax landscape, the challenges and opportunities for CPAs and their clients are piling up.

CalCPA’s recent Town Hall tackled those topics with guests Gene Marks, CPA, business analyst, author and nationally recognized columnist, and Loren Kaye, California political and policy expert and former president of the California Foundation for Commerce and Education. 

While the conversation ranged from AI to the economy to California ballot measures, a common theme emerged: CPAs have an important role in helping businesses navigate uncertainty.

AI may generate plenty of headlines about its potential risks, but Marks encouraged CPAs to look beyond the broad debate over the technology and consider the practical opportunities emerging for the profession.

In California, in particular, new requirements surrounding how businesses use AI could create a developing area of expertise for CPAs.

Marks pointed to requirements involving audits of how companies use AI, including whether the technology is being used in employment decisions or other decisions affecting workers.

“It’s like the Wild West,” Marks said, describing the emerging landscape. For CPAs willing to develop expertise in the area, he sees an opportunity to become a trusted resource as businesses try to understand and comply with new requirements.

He also sees AI itself becoming increasingly embedded in everyday business.

“AI itself is becoming a utility,” Marks said. “It is becoming necessary. We’re all using it already as part of our daily lives.”

At the same time, Marks argued that regulation will need to strike a balance—providing appropriate safeguards without unnecessarily restricting innovation and growth.

For CPAs, that balance creates another opportunity: helping clients understand not only how to use AI, but also how to manage the risks and responsibilities that come with it.

A New Normal for Inflation and Interest Rates?

Marks also offered a longer-term perspective on inflation and interest rates.

Rather than viewing today’s inflation primarily through the lens of temporary factors such as energy prices or supply-chain disruptions, Marks said CPAs and business owners should consider the possibility that higher inflation and interest rates are becoming part of the operating environment.

He suggested that businesses should build approximately 3 percent to 4 percent inflation and 6 percent to 7 percent interest rates into longer-term forecasts.

The numbers are not necessarily a crisis, Marks emphasized. Instead, they represent a business environment that requires adjustment.

His message to CPAs: Help clients plan for the environment they are actually operating in rather than waiting for a return to the unusually low inflation and interest rates that characterized much of the period before the pandemic.

Tariffs were another issue complicating business planning.

Marks noted that ongoing legal and policy challenges have made the tariff environment difficult to predict—yet many businesses have so far found ways to adapt.

Some companies are absorbing higher costs, while others are passing price increases along to customers or adjusting their supply chains.

The impact, he said, varies significantly by industry and by how dependent a company is on products sourced from countries subject to tariffs.

For CPAs, that means understanding how tariff exposure affects individual clients rather than assuming a one-size-fits-all impact.

Kaye shifted the conversation to California, where several ballot measures could have implications for taxpayers, businesses and the state budget.

He discussed Proposition 40, describing it as the most prominent of the measures under discussion and outlining the competing political and business interests surrounding it. Kaye also discussed Propositions 41 and 42, focusing on their provisions related to government accountability, transparency and taxation of financial assets.

Because the measures were still part of an ongoing political campaign, Kaye highlighted the range of positions being taken by political, labor and business organizations rather than presenting a single consensus view.

The broader takeaway for CPAs is that California’s tax and regulatory environment remains an important factor in business planning—and one worth watching closely.

Perhaps the most practical message of the Town Hall came near the end of the discussion. With so much economic and political noise competing for attention, Marks said business owners need to remain focused on what they can control: running their businesses and serving their customers.

That points to an important role for CPAs: Whether the issue is AI, inflation, interest rates, tariffs or changing regulations, clients increasingly need advisers who can translate complicated developments into practical business implications. The opportunity for CPAs may be less about predicting what comes next and more about helping clients prepare for multiple possibilities.

 by registering and accessing the event in your Activities. And be a part of 

the next Town Hall conversation on Nov. 17

The Forces Reshaping Business—and What They Mean for CPAs

From AI to tariffs to taxes and interest rates, uncertainty continues to shape the business landscape. CalCPA's Town Hall explored what it means for CPAs and their clients.