Few people have a better vantage point on the sweeping changes reshaping the CPA profession than Dominic Franzella. As executive officer of the California Board of Accountancy, Franzella sits at the intersection of regulatory policy, consumer protection and professional standards.

In a conversation with CalCPA President & CEO Denise LeDuc Froemming at the recent CalCPA Council meeting, Franzella addressed some of the most pressing topics facing the profession, including new licensure pathways, private equity in accounting and AI.

Q: Now that AB 1175 passed, what comes next and how can CPAs, students and firms prepare?

Franzella: AB 1175 represents a significant modernization of how aspiring CPAs in California can earn their license. The new pathways officially open on Jan. 1, 2027, and the CBA is working on a roughly 12-month runway to get everything in place. “The board is finalizing the regulations, the underlying specifics from the legislation, and we hope to have those regulations in place by Oct. 1 so there's a little bit more runway for people to be able to see what it's going to look like.”

Following the start of the new pathway, there will be a two-year transition period, both legacy and new pathways will coexist, and the CBA plans to open its degree and certification recognition process for schools to begin applying in early October, which will add another element to fast-track the verification of education requirements. For CPAs and firms, staying current on these timelines will be critical to advising staff navigating these changes.

Q: Private equity is increasingly entering the accounting profession. How is the CBA approaching this shift and what should CPAs and firms know?

Franzella: “The question for us is how can we create a regulatory framework that ensures that CPAs are in charge of the decision-making process of those firms, and not having undue influence created as a result of some of the investments from private equity.”

Franzella, who serves on the National Association of State Boards of Accountancy Private Equity Task Force, noted that private equity can bring meaningful capital infusions that allow firms to invest in technology—including AI—and other modernizations. But the CBA's primary lens is consumer protection, with a focus on ensuring that CPA firms maintain independence both in fact and in appearance, even when non-CPA investors are involved.

One particularly concern Franzella addressed is that some private equity-backed firms have reportedly discouraged professionals from using their CPA title. Franzella called this deeply troubling for those who have worked hard to earn the designation and signaled that modernizing the regulatory provisions around the CPA title is a priority.

Q: How is the CBA thinking about AI and what should CPAs understand about their obligations when using it?

Franzella: “We want to make sure consumers are getting reliable information and protected appropriately, and that CPAs are using AI with the appropriate professional skepticism that is required and necessary.”

Franzella said the CBA’s focus is not on advocating for or against AI adoption, but on understanding its impact across all firm sizes and ensuring consumer protections keep pace. He noted the Boards of Accountancy have also been tracking proposed state legislation around AI auditing, working alongside CalCPA to educate both the Board and legislators on how the profession is currently approaching AI. For CPAs, the message is clear: AI is a tool that demands the same professional rigor and skepticism as any other.

Q: What changes are coming to continuing professional education (CPE) requirements, and how will they affect licensees?

Franzella: “The technologies and methodologies that can be delivered are advancing faster than our regulations could handle the changes. We're really trying to shift the focus from the how it's delivered to more of the quality and content that's being delivered.”

The CBA has been working on reforming how CPE is delivered and evaluated, as well as reconsidering the total hours required. Rulemaking to modernize CPE delivery is expected by fall, with implementation potentially in 2026 or 2027.

The board has moved to a self-certification model for CPE compliance to help streamline the renewal process, which has been well-received, and anticipates expanding the number of CPE audits to ensure compliance.

“I don't think it's going to look fundamentally different,” Franzella said. “The shift now will be instead of looking at did you report correctly, we're going to be more focused on did you actually complete the area.”

Franzella explained that enforcement is evolving in two significant ways. First, with the shift to CPE self-certification, the CBA is moving from verifying whether licensees correctly reported their hours to verifying whether they completed them.

That means an increase in audits with Franzella indicating the number could jump from roughly 100–200 per month historically to as many as 5,000 per year, with a risk-based approach targeting prior violators.

Q: What enforcement priorities should CPAs and firms be aware of going into this year?

Franzella: “We're really spending these next few months trying to safeguard consumers from unlicensed activity, either from people who are truly unlicensed or from CPAs who have allowed their license to go delinquent or expire and continue to practice without completing the continuing education.”

As the board is sharpening its focus on unlicensed activity, for firms, this signals the importance of internal compliance tracking and renewal reminder systems. Clients, too, should be aware that verifying a CPA's active license status is an important part of due diligence.

Celebrating 125 Years of Consumer Protection

The conversation closed on a milestone note: 2026 marks the 125th anniversary of California's CPA profession. The CBA has partnered with CalCPA to commemorate the occasion, with Sen. Roger Niello introducing a Legislative resolution, SCR 111. Throughout the year, the CBA will release special features tracing the profession and the board's evolution and is producing a video highlighting its long history of consumer protection.

“We're going to take this year to really show what it means to be a CPA, what it means to be regulating this community, and how consumers are benefited from the roles that CPAs play,” Franzella said.