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Measure dies on changing California CPA licensing

By John Hill - jhill@sacbee.com

Published 12:00 am PDT Saturday, April 12, 2008
Story appeared in MAIN NEWS section, Page A3

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A bill to let out-of-state accountants provide many services without notifying the California licensing board has died – at least for now.

Assembly Bill 2473, facing widespread opposition, was shelved this week before it could be considered by a legislative committee.

"Obviously, the time was not right," said Assemblyman Roger Niello, R-Fair Oaks, who co-wrote the bill with Assemblywoman Fiona Ma, D-San Francisco.

But Niello added that "the issue is not going to go away." He pointed out that more than a dozen other states have passed laws allowing accountant mobility. "That's just going to grow," Niello said.

Four years ago, accountants succeeded in getting a bill passed that forced out-of-state practitioners to notify state regulators that they were operating within California.

But California accountants say that requirement created chaos, and pushed for a return to a system allowing out-of-state accountants to provide many services without notification or payment of a fee.

Opponents, led by the Center for Public Interest Law at the University of San Diego Law School, said the bill was part of nationwide effort to loosen accounting standards.

Senate President Don Perata, D-Oakland, challenged the state Board of Accountancy to answer a host of questions about it. Others, including State Treasurer Bill Lockyer and the director of the Department of Consumer Affairs, also lined up against the bill.

About the writer:

  • Call John Hill, Bee Capitol Bureau, (916) 326-5543.
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