Accountancy: California Board of Accountancy.

(1) Existing law provides for the licensure and regulation of various professions and vocations by boards within the Department of Consumer Affairs. 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, operative on July 1, 2020, authorizes a board within the Department of Consumer Affairs to deny a license on grounds that the applicant has been convicted of a crime or has been subject to formal discipline only if specified conditions are met. These conditions include if the applicant has been convicted of a crime within the preceding 7 years from the date of application that is substantially related to the qualifications, functions, or duties of the business or profession for which the application is made, and for which the applicant is incarcerated or released from incarceration. Under existing law, the 7-year limitation does not apply if the applicant was, among other conditions, convicted of a financial crime currently classified as a felony that is directly related to the fiduciary qualifications for specified licenses, including for applicants seeking licensure as accountants, pursuant to specified provisions. This bill would remove the specific inclusion of applicants seeking licensure as accountants from those latter provisions regarding denial of a license. The bill, operative on July 1, 2020, in addition to those general grounds for denial of a license, would authorize the California Board of Accountancy to deny an applicant for a license if the applicant was convicted of a financial crime currently classified as a felony that is directly and adversely related to the qualifications, functions, or duties of a certified public accountant, per regulations adopted by the board. The bill would specify that the 7-year limitation described above would not apply in these cases. The bill would also authorize the board to deny an applicant for a license if the applicant, within the preceding 7 years from the application date, was subjected to disciplinary action by a federal government agency, specific oversight board, or another country for an act substantially related to the functions, qualifications, or duties of a certified public accountant. (2) Existing law authorizes the California Board of Accountancy to appoint a person designated as an executive officer who is required to exercise various powers and perform various duties as delegated by the board. Existing law repeals these provisions on January 1, 2020. This bill would extend the operation of the board and its authorization to designate an executive officer to January 1, 2024. The bill would also make various nonsubstantive changes. (3) Existing law requires the California Board of Accountancy, not less than twice each year, to prepare and distribute to all licensees a report of the activities of the board, including amendments to the accountancy provisions and regulations, and matters of interest to the public and practitioners. This bill would authorize the board to meet this requirement by distributing these materials via email or making them available on the board's internet website. (4) Under existing law, the board may collect, but cannot require, a valid email address from each applicant at the time of application for a certified public accountant license. Existing law authorizes the board to establish, by regulation, a system for placing a licensee into a retired status, for certified public accountants and public accountants who are not actively engaged in practice. Existing law further authorizes a holder of a permit to engage in practice as a certified public accountant or public accountant to have their permit placed in a military inactive status, as specified. This bill would require an applicant who has a valid email address to report that email to the board at the time of application or registration in any of the above circumstances. (5) Existing law specifies the conditions in which a permit issued to a certified public accountant or a public accountant expires if it is not renewed, subject to specified fees. Under existing law, the board may collect, but not require, a valid email address from the applicant on the renewal form for an unexpired permit. This bill would instead require each applicant for renewal who has a valid email address to report that email to the board on the renewal form. The bill would also require each permitholder with a valid email address, on or before July 1, 2020, to provide the board with that email address. The bill would require a permitholder to notify the board within 30 days of any change to their email address on file with the board and would permit the board to periodically require permitholders to confirm that their email address on file with the board is current. This bill would also establish a minimum biennial fee for the renewal of public accountancy permits at $250, and would raise the maximum for those fees from $250 to $280. (6) Existing law authorizes an expired permit, except as otherwise provided, to be renewed at any time within 5 years after its expiration upon filing an application for renewal on a form prescribed by the board, payment of all accrued and unpaid renewal fees, and providing evidence satisfactory to the board of compliance, as specified. This bill would require an applicant, if that applicant has a valid email address at the time of application, to provide that email address to the board. (7) Existing law establishes a procedure to apply for registration of a partnership to practice public accountancy. This bill would require the partnership, if it has a valid email address at the time of registration, to provide that email address to the board. (8) Existing law also establishes a procedure to allow an individual whose principal place of business is not in California and who has a valid and current license, certificate, or permit to practice public accountancy from another state to engage in practice in California. Under existing law, an individual who is required to cease practice because of disciplinary action, conviction of certain crimes, or other specified reasons cannot practice public accountancy until notifying the board, on a form prescribed by the board, and receiving written permission from the board. This bill would require an individual who has a valid email address to provide that address to the board at the time of notification. (9) Under existing law, a certified public accounting firm that is authorized to practice in another state and that does not have an office in California may engage in the practice of public accountancy in California through the holder of a practice privilege if specified conditions are met. Existing law requires a firm that provides certain services, including an audit or review of a financial statement for an entity headquartered in California or a compilation of a financial statement under specified circumstances, to obtain a registration from the board. This bill would require the firm, if it has a valid email address at the time of registration, to provide that email address to the board. (10) Existing law requires an applicant for registration as an accountancy corporation to supply the board with all necessary and pertinent documents and information requested by the board concerning the applicant's plan of operation. Existing law requires the board, if it finds that the corporation is duly organized and qualified for the transaction of business and has paid the registration fee, to issue a certificate of registration. Existing law also requires each accountancy corporation to renew its permit to practice biennially and to pay the renewal fee fixed by the board. This bill would require a corporation that has a valid email address to provide that email address to the board at the time of application or renewal. (11) This bill would incorporate additional changes to Section 480 of the Business and Professions Code, as added by Section 4 of Chapter 995 of the Statutes of 2018, proposed by AB 1076 to be operative only if this bill and AB 1076 are enacted and this bill is enacted last.