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AB-2473 Accountancy: licensure.(2007-2008)

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AB2473:v98#DOCUMENT

Amended  IN  Assembly  April 01, 2008

CALIFORNIA LEGISLATURE— 2007–2008 REGULAR SESSION

Assembly Bill
No. 2473

Introduced  by  Assembly Member Niello, Ma

February 21, 2008

An act to amend Sections 5035.3, 5050, 5050.2, 5088, 5096, 5096.2, 5096.3, 5096.4, 5096.6, 5096.7, 5096.10, 5096.12, 5109, 5116.6, and 5134 of, to amend and repeal Section 5092 of, to repeal Sections 5054, 5096.1, 5096.5, 5096.11, 5096.14, and 5096.15 of, and to repeal and add Section Sections 5096.1 and 5096.13 of, the Business and Professions Code, relating to accountancy.


LEGISLATIVE COUNSEL'S DIGEST


AB 2473, as amended, Niello. Accountancy: licensure.
Existing law provides for the licensure and regulation of accountants by the California Board of Accountancy in the Department of Consumer Affairs. Existing law prohibits a person from engaging in the practice of public accountancy in this state unless he or she holds either a valid permit issued by the board or a practice privilege, which the board may, until January 1, 2011, issue to an accountant licensed in another state who meets specified requirements, and a violation of this provision is a crime. Existing law exempts from the prohibition the temporary practice of accountancy in California incident to practice in another state or foreign country in which a person is licensed or authorized to practice accountancy, as specified, and the filing of specified tax returns by an accountant licensed in another state.
This bill would repeal on January 1, 2012, the provisions governing education, examination, and experience requirements for licensure as a certified public accountant. The bill would delete the exception from the practice prohibition for practice incidental to lawful practice in another state and for the filing of the tax returns by a licensee of another state, and would revise the exception from the practice prohibition for practice incidental to lawful practice in a foreign country by imposing additional requirements in order for that exception to apply.
This bill would delete the practice privilege provisions for out of state accountants, including related fees, and would instead authorize an individual who has a valid and current license, certificate, or permit to practice public accountancy from another state and who meets specified requirements to engage in the cross-border practice of accountancy in this state without obtaining a certificate or license, subject to specified conditions and limitations. The bill would authorize an accounting firm or sole proprietor that performs nonattest services for entities headquartered in this state to engage in the practice of public accountancy in this state without a firm registration, and would authorize an accounting firm or sole proprietor that performs attest services for entities headquartered in this state to engage in the practice of accountancy through an alternative firm registration, subject to certain conditions. The bill would authorize provide for automatic suspension or revocation of the cross-border practice authorization in certain circumstances, and would require the board to revoke or suspend the above authorizations to practice, cross-border practice authorization if the board or its executive officer makes certain findings and authorize the board to take disciplinary action, as specified.
Because this bill would delete or revise certain exceptions to the accountancy licensing provisions, the violation of which are a crime, it would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

The people of the State of California do enact as follows:


SECTION 1.

 Section 5035.3 of the Business and Professions Code is amended to read:

5035.3.
 For purposes of Sections 5050.2, 5096.12, and 5096.13, “firm” includes any entity that is authorized or permitted to practice public accountancy as a firm under the laws of another state or country.

SEC. 2.

 Section 5050 of the Business and Professions Code is amended to read:

5050.
 Except as provided in Section 5050.2, no person shall engage in the practice of public accountancy in this state unless the person is the holder of a valid permit to practice public accountancy issued by the board or practicing in this state under cross-border practice pursuant to Article 5.1 (commencing with Section 5096).

SEC. 3.

 Section 5050.2 of the Business and Professions Code is amended to read:

5050.2.
 (a) Nothing in this chapter shall prohibit a person or firm that holds a valid and current license, registration, certificate, permit, or other authority to practice public accountancy from a foreign country, and lawfully practicing therein, from temporarily engaging in the practice of public accountancy in this state incident to an engagement in that country, provided that the individual or firm:
(1) Is regulated by the foreign country and is performing the temporary practice in this state under accounting or auditing standards of that country.
(2) Does not represent or hold himself, herself, or itself out as being the holder of a valid California permit to practice public accountancy.
(3) Is authorized to practice in another country and does not have an office in this state.
(4) Shall be deemed to consent to the personal, subject matter, and disciplinary jurisdiction of the board with respect to any practice under this section.
(5) Shall cooperate with any board investigation or inquiry and shall timely respond to a board investigation, inquiry, request, notice, demand, or subpoena for information or documents and timely provide to the board the identified information and documents.
(6) Shall not perform any services in this state that the individual or firm is not legally authorized to perform in the country of principal place of business.
(b) The board may issue a fine pursuant to Article 6.5 (commencing with Section 5116), or revoke, suspend, or otherwise restrict the right to practice in this state or otherwise discipline a person with a license, registration, certificate, permit, or other authority to practice public accountancy from a foreign country for any act that would be a violation of this code or, grounds for discipline against a licensee, or grounds for denial of a license under this code. The provisions of the Administrative Procedure Act, including, but not limited to, the commencement of a disciplinary proceeding by the filing of an accusation by the board shall apply to this section. Any person whose authorization to practice has been revoked under this section may apply for reinstatement of the authorization to practice not less than one year after the effective date of the board’s decision revoking the authorization to practice unless a longer time, not to exceed three years, is specified in the board’s decision revoking the authorization to practice.
(c) The board may administratively suspend the authorization of any person to practice under this section for any act that would be grounds for administrative suspension under Section 5096.4 utilizing the procedures set forth in that section.

SEC. 4.

 Section 5054 of the Business and Professions Code is repealed.

SEC. 5.

 Section 5088 of the Business and Professions Code is amended to read:

5088.
 Any individual who is the holder of a current and valid license, certificate, or permit as a certified public accountant issued under the laws of any state and who applies to the board for a license as a certified public accountant under the provisions of Section 5087 may, until the time the application for a license is granted or denied, practice public accountancy in this state only under the cross-border practice provisions of Article 5.1 (commencing with Section 5096), except that, for purposes of this section, the individual is not disqualified from cross-border practice during the period the application is pending by virtue of maintaining an office or principal place of business, or both, in this state.

SEC. 6.

 Section 5092 of the Business and Professions Code is amended to read:

5092.
 (a) To qualify for the certified public accountant license, an applicant who is applying under this section shall meet the education, examination, and experience requirements specified in subdivisions (b), (c), and (d), or otherwise prescribed pursuant to this article. The board may adopt regulations as necessary to implement this section.
(b) An applicant for the certified public accountant license shall present satisfactory evidence that the applicant has completed a baccalaureate or higher degree conferred by a college or university, meeting, at a minimum, the standards described in Section 5094, the total educational program to include a minimum of 24 semester units in accounting subjects and 24 semester units in business related subjects. This evidence shall be provided prior to admission to the examination for the certified public accountant license, except that an applicant who applied, qualified, and sat for at least two subjects of the examination for the certified public accountant license before May 15, 2002, may provide this evidence at the time of application for licensure.
(c) An applicant for the certified public accountant license shall pass an examination prescribed by the board pursuant to this article.
(d) The applicant shall show, to the satisfaction of the board, that the applicant has had two years of qualifying experience. This experience may include providing any type of service or advice involving the use of accounting, attest, compilation, management advisory, financial advisory, tax, or consulting skills. To be qualifying under this section, experience shall have been performed in accordance with applicable professional standards. Experience in public accounting shall be completed under the supervision or in the employ of a person licensed or otherwise having comparable authority under the laws of any state or country to engage in the practice of public accountancy. Experience in private or governmental accounting or auditing shall be completed under the supervision of an individual licensed by a state to engage in the practice of public accountancy.
(e) This section shall remain in effect only until January 1, 2012, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2012, deletes or extends that date.

SEC. 7.

 Section 5096 of the Business and Professions Code is amended to read:

5096.
 (a) An individual whose principal place of business is not in this state and who has a valid and current license, certificate, or permit to practice public accountancy from another state may, subject to the conditions and limitations in this article, engage in the practice of public accountancy in this state under cross-border practice without obtaining a certificate or license under this chapter if the individual satisfies one of the following:
(1) The individual has continually practiced public accountancy as a certified public accountant under a valid license, certificate, or permit issued by any state for at least four of the last 10 years.
(2) The individual has a license, certificate, or permit from a state that has been determined by the board to have education, examination, and experience qualifications for licensure substantially equivalent to this state’s qualifications under Section 5093.
(3) The individual possesses education, examination, and experience qualifications for licensure that are substantially equivalent to this state’s qualifications under Section 5093.
(b) The board may designate states as substantially equivalent under paragraph (2) of subdivision (a) and may accept individual qualification evaluations or appraisals conducted by designated entities, as satisfying the requirements of paragraph (3) of subdivision (a).
(c) An individual who practices under cross-border practice in this state:
(1) Is subject to the personal and subject matter jurisdiction and disciplinary authority of the board and the courts of this state.
(2) Shall comply with the provisions of this chapter, board regulations, and other laws, regulations, and professional standards applicable to the practice of public accountancy by the licensees of this state and to any other laws and regulations applicable to individuals practicing under cross-border practice in this state, except the individual is deemed, solely for the purpose of this article, to have met the continuing education requirements and ethics examination requirements of this state when the individual has met the continuing education requirements of the state in which the individual holds the valid license, certificate, or permit as provided in subdivision (a).
(3) Shall not provide public accountancy services in this state from any office located in this state, except as an employee of a firm registered in this state. This paragraph does not apply to public accountancy services provided to a client at the client’s place of business or residence.
(4) Is deemed to have appointed the regulatory agency of each state in which he or she holds a certificate, license, or permit as the individual’s agent on whom notices, subpoenas or other process may be served in any action or proceeding by the board against the individual.
(5) Shall cooperate with any board investigation or inquiry and shall timely respond to a board investigation, inquiry, request, notice, demand or subpoena for information or documents and timely provide to the board the identified information and documents.
(6) Shall not perform any services in this state under cross-border practice that he or she is not legally authorized to perform in his or her state of principal place of business.
(d) (1) No individual may practice under cross-border practice without prior approval of the board if the individual has any disqualifying condition under paragraph (2) of this subdivision.
(2) Disqualifying conditions include:
(A) Conviction of any crime other than a minor traffic violation.
(B) Revocation, suspension, denial, surrender or other discipline or sanctions involving any license, permit, registration, certificate or other authority to practice any profession in this or any other state or foreign country or to practice before any state, federal, or local court or agency, or the Public Company Accounting Oversight Board.
(C) Pendency of any investigation, inquiry or proceeding by or before any state, federal or local court or agency, including, but not limited to, the Public Company Accounting Oversight Board, involving the professional conduct of the individual.
(D) Any judgment or arbitration award against the individual involving the professional conduct of the individual in the amount of thirty thousand dollars ($30,000) or greater within the last 10 years.
(E) Any other conditions as specified by the board in regulation.
(3) The board may adopt regulations exempting specified minor occurrences of the conditions listed in subparagraph (B) of paragraph (2) from being disqualifying conditions under this subdivision.
(4) In no event may the board approve an applicant for cross-border practice if he or she, within the 12 months preceding the filing of his or her application, has been the subject of a final order of conviction of any felonies specified in subdivision (b) of Section 5096.1 or designated by board regulations pursuant to subdivision (e) of Section 5096.1.
(e) An individual who acquires any disqualifying condition described in paragraph (2) of subdivision (d) while practicing under cross-border practice in this state shall immediately notify the board in writing of the nature and details of the disqualifying condition.

SEC. 8.

 Section 5096.1 of the Business and Professions Code is repealed.

SEC. 9.

 Section 5096.1 is added to the Business and Professions Code, to read:

5096.1.
 (a) The right of an individual to engage in cross-border practice without prior approval of the board is a privilege that, among other things, is conditioned on both of the following:
(1) The existence of legal authorization to perform professional services as a certified public accountant from the state in which his or her principal place of business is located.
(2) The absence of any disqualifying conditions listed in subdivision (d) of Section 5096 or specified in regulations adopted by the board.
(b) In order to protect the paramount interests of the public and the consumers of the State of California, the Legislature finds that if an individual fails to meet certain conditions, he or she shall be considered conclusively disqualified from engaging in cross-border practice. In addition, an immediate forfeiture of the individual’s privilege to engage in cross-border practice shall occur as a matter of law when any of the following conditions exist, and no hearing shall be held nor shall the board have any discretion regarding whether or not to terminate the individual’s cross-border practice:
(1) The individual’s legal authorization to perform professional services as a certified public accountant is revoked, canceled, suspended, or otherwise terminated by the state in which his or her principal place of business is located. A certified copy of the order, decision, or judgment revoking, canceling, suspending, or otherwise terminating the legal authorization of the individual to perform professional services as a certified public accountant by the tribunal, court, or agency in the state of his or her principal place of business shall be conclusive proof of the fact that the individual no longer has authorization to provide professional services in that state.
(2) The individual is convicted of any of the following felonies:
(A) Murder.
(B) Robbery.
(C) Grand theft.
(D) Embezzlement.
After receiving a certified copy of the record of conviction, the board shall suspend the individual’s cross-border practice privileges. After the judgment of conviction has become final, either because the time for appeal has elapsed or the judgment of conviction has been affirmed or has otherwise become final, the individual’s cross-border practice shall be summarily revoked. If the conviction is reversed, the individual’s cross-border practice privileges shall be immediately reinstated.
(c) For purposes of paragraph (2) of subdivision (b), a crime is a felony if it is specifically declared to be so by statute or is charged as a felony, irrespective of whether, in a particular case, the crime may be considered a misdemeanor as a result of postconviction proceedings.
(d) For purposes of this section, a certified copy of the criminal conviction shall be conclusive proof of the fact of the conviction.
(e) The board may, by regulation, designate additional felonies that result in summary revocation of cross-border practice pursuant to this section.
(f) An individual whose cross-border practice privileges have been suspended or terminated under this section may petition the board to be reinstated not less than one year from the date of suspension or termination.
(g) An individual whose cross-border practice privileges have been suspended or terminated under this section may, at any time, petition the board to reinstate his or her privilege to engage in cross-border practice if the legal authorization to provide services as a certified public accountant is restored by the state where his or her principal place of business is located.

SEC. 9.SEC. 10.

 Section 5096.2 of the Business and Professions Code is amended to read:

5096.2.
 (a) An individual licensed out of state may be denied cross-border practice in this state for failure to qualify under or comply with the provisions of this article or implementing regulations, or for any act that if committed by an applicant for licensure would be grounds for denial of a license under Section 480 or if committed by a licensee would be grounds for discipline under Section 5100, or for any act committed outside of this state that would be a violation if committed within this state.
(b) The board may deny cross-border practice in this state using either of the following procedures:
(1) Notifying the individual in writing of all of the following:
(A) That the cross-border practice is denied.
(B) The reasons for denial.
(C) The earliest date on which the individual is eligible for cross-border practice in this state.
(D) The individual has a right to appeal the notice and request a hearing under the provisions of the Administrative Procedure Act if a written notice of appeal and request for hearing is made within 15 days.
(E) Should the individual not submit a notice of appeal and request for hearing within 15 days, the board’s action set forth in the notice shall become final.
(2) Filing a statement of issues under the Administrative Procedure Act.
(c) An individual licensed out of state who had been denied cross-border practice in this state may petition for board approval to practice under cross-border practice not less than one year after the effective date of the notice or decision denying practice in this state, unless a longer time period, not to exceed three years, is specified in the notice or decision denying practice in this state.

SEC. 10.SEC. 11.

 Section 5096.3 of the Business and Professions Code is amended to read:

5096.3.
 (a) The cross-border practice of an individual licensed out of state, practicing or who practiced in this state under cross-border practice, may besubject to revocation, suspension, fines, or other disciplinary sanctions for any conduct that would be grounds for discipline against a licensee of the board or for any conduct in violation of this article or regulations implementing this article.
(b) The board may recover its costs pursuant to Section 5107 as part of any disciplinary proceeding against an individual who is licensed in another state and who is practicing or has practiced under cross-border practice in this state.
(c) An individual licensed out of state whose cross-border practice has been revoked may petition for board approval to practice in this state not less than one year after the effective date of the board’s decision revoking the individual’s cross-border practice unless a longer time period, not to exceed three years, is specified in the board’s decision revoking practice in this state.
(d) The provisions of the Administrative Procedure Act, including, but not limited to, the commencement of a disciplinary proceeding by the filing of an accusation by the board shall apply under this article.
(e) If the board takes disciplinary action against an individual licensed in another state who is practicing or practiced in this state under cross-border practice, the board shall notify each state in which the individual holds a license, certificate, or permit of that action.

SEC. 11.SEC. 12.

 Section 5096.4 of the Business and Professions Code is amended to read:

5096.4.
 (a) The right of an individual to engage in cross-border practice may be administratively suspended at any time by an order issued by the board or its executive officer, without prior notice or hearing, for the purpose of conducting a disciplinary investigation, proceeding, or inquiry concerning the representations made in the notice, the individual’s competence or qualifications to practice under cross-border practice, failure to timely respond to a board inquiry or request for information or documents, or under other conditions and circumstances provided for by board regulation. if the board or its executive officer finds both of the following:
(1) The individual meets one of the following requirements:
(A) Acquired a disqualifying condition described in paragraph (2) of subdivision (d) of Section 5096.
(B) Committed any act that, if committed by an applicant, would be grounds for denial of a license or, if committed by a licensee, would be grounds for discipline under Section 5100.
(C) Committed any act outside of this state that would be a violation if committed within this state.
(2) Serious injury will result to the public before the matter could be heard on notice.
(b) The administrative suspension order is immediately effective when mailed to the individual’s address of record or agent for notice and service as provided for in this article.
(c) The administrative suspension order shall contain the following:
(1) The reason for the suspension.
(2) A statement that the individual has the right, within 30 days, to appeal the administrative suspension order and request a hearing, and that failure to do so will result in the order becoming permanent.
(3) A statement that any appeal hearing will be conducted under the provisions of the Administrative Procedure Act applicable to individuals who are denied licensure whose license is subject to revocation, suspension, limitation, or imposition of conditions, including the filing of a statement of issues an accusation by the board setting forth the reasons for the administrative suspension of cross-border practice and specifying the statutes and rules with which the individual must show compliance by producing proof at the hearing and in addition any particular matters that have come to the attention of the board and that would authorize the administrative suspension, or the denial of cross-border practice.
(d)The burden is on the individual whose cross-border practice is suspended to establish both qualification and fitness to practice under cross-border practice. on which the action is based.
(d) Hearings shall be conducted within 90 days of the board’s reception of the individual’s appeal of the administrative suspension order. A final decision shall be issued no later than 45 days after submission of the matter. If the decision sustains the board’s suspension order, it shall become permanent. Otherwise, it shall be immediately vacated.
(e) The administrative suspension shall continue in effect until terminated by an order of the board or the executive officer; however, any suspension order that has been appealed shall be vacated by operation of law, unless a final decision upholding the order is issued within 135 days of the appeal.

(f)Administrative suspension is not discipline and shall not preclude any individual from applying for a license to practice public accountancy in this state.

(g)Proceedings to appeal an administrative suspension order may be combined or coordinated with proceedings for denial of an individual’s authority to engage in cross-border practice or discipline of an individual who has engaged in cross-border practice.

SEC. 12.SEC. 13.

 Section 5096.5 of the Business and Professions Code is repealed.

SEC. 13.SEC. 14.

 Section 5096.6 of the Business and Professions Code is amended to read:

5096.6.
 In addition to the authority otherwise provided for by this code, the board may delegate to the executive officer the authority to issue any notice or order provided for in this article and to act on behalf of the board, including, but not limited to, issuing a notice of denial of cross-border practice and an interim suspension order, subject to the right of the individual licensed in another state to timely appeal and request a hearing as provided for in this article.

SEC. 14.SEC. 15.

 Section 5096.7 of the Business and Professions Code is amended to read:

5096.7.
 Except as otherwise provided in this article, the following definitions apply:
(a) The terms“license,” “licensee,” “permit,” or “certificate” as used in this chapter or Division 1.5 (commencing with Section 475) shall include persons, as defined in Section 5035, performing cross-border practice or practicing under an alternative firm registration under this article, unless otherwise inconsistent with the provisions of the article.
(b) The term “employee” as used in this article shall include, but is not limited to, partners, shareholders, and other owners.

SEC. 15.SEC. 16.

 Section 5096.10 of the Business and Professions Code is amended to read:

5096.10.
 The provisions of this article shall only be operative if there is an appropriation from the Accountancy Fund in the annual Budget Act to fund the activities in the article and sufficient hiring authority is granted pursuant to a budget change proposal to the board to provide staffing to implement this article.

SEC. 16.SEC. 17.

 Section 5096.11 of the Business and Professions Code is repealed.

SEC. 17.SEC. 18.

 Section 5096.12 of the Business and Professions Code is amended to read:

5096.12.
 (a) Anaccounting firm, as defined in Section 5035.3, or sole proprietor, that performs attest services for entities headquartered in this state, may engage in the practice of public accountancy in this state through an alternative firm registration provided that the firm or sole proprietor:
(1) Isauthorized to practice in another state and does not have an office in this state.
(2) Has one partner, shareholder, or owner who qualifies for cross-border practice in this state, and provides to the board his or her name, state of principal place of business, license number, and firm identifying information.
(3) Is deemed to consent to the personal, subject matter, and disciplinary jurisdiction of the board with respect to any practice under this section.
(4) Shall comply with the provisions of this chapter, board regulations, and other laws, regulations, and professional standards applicable to the practice of public accountancy by the licensees of this state and to any other laws and regulations applicable to cross-border practice.
(5) Is deemed to have appointed the regulatory agency of each state in which the firm or sole proprietor holds a certificate, license, or permit as the agent on whom notices, subpoenas, or other process may be served in any action or proceeding by the board against the firm or sole proprietor.
(6) Shall cooperate with any board investigation or inquiry and shall timely respond to a board investigation, inquiry, request, notice, demand, or subpoena for information or documents and timely provide to the board the identified information and documents.
(7) Shall not perform any services in this state under alternative firm registration that the firm or sole proprietor is not legally authorized to perform in its or his or her state of principal place of business.
(b) “Attest services” include any audit or other engagement to be performed in accordance with the Statements on Auditing Standards, any examination of prospective financial information to be performed in accordance with the Statements on Standards for Attestation Engagements, and any engagement to be performed in accordance with the standards of the Public Company Accounting Oversight Board. “Attest services,” for purposes of this article, do not include any review of a financial statement to be performed in accordance with the Statements on Standards for Accounting and Review Services.
(c) The board may revoke or suspend an alternative firm registration, issue a fine pursuant to Article 6.5 (commencing with Section 5116), or otherwise restrict or discipline the firm or sole proprietor for any act that would be grounds for discipline against a licensee or grounds for denial of a license.

SEC. 18.SEC. 19.

 Section 5096.13 of the Business and Professions Code is repealed.

SEC. 19.SEC. 20.

 Section 5096.13 is added to the Business and Professions Code, to read:

5096.13.
 (a) An accounting firm, as defined in Section 5035.3, or sole proprietor that performs nonattest services for entities headquartered in this state may engage in the practice of public accountancy in this state without any form of firm registration provided that the firm or sole proprietor:
(1) Is authorized to practice in another state and does not have an office in this state.
(2) Is deemed to consent to the personal, subject matter, and disciplinary jurisdiction of the board with respect to any practice under this section.
(3) Shall comply with the provisions of this chapter, board regulations, and other laws, regulations, and professional standards applicable to the practice of public accountancy by the licensees of this state and to any other laws and regulations applicable to individuals practicing under cross-border practice.
(4) Is deemed to have appointed the regulatory agency of each state in which the firm or sole proprietor holds a certificate, license, or permit as the agent on whom notices, subpoenas, or other process may be served in any action or proceeding by the board against the firm or sole proprietor.
(5) Shall cooperate with any board investigation or inquiry and shall timely respond to a board investigation, inquiry, request, notice, demand, or subpoena for information or documents and timely provide to the board the identified information and documents.
(6) Shall not perform any services in this state under cross-border practice that the firm or sole proprietor is not legally authorized to perform in their state of principal place of business.
(b) The board may revoke or suspend authorization to practice under this section, issue a fine pursuant to Article 6.5 (commencing with Section 5116), or otherwise restrict or discipline the firm or sole proprietor for any act that would be grounds for discipline against a licensee or grounds for denial of a license.

SEC. 20.SEC. 21.

 Section 5096.14 of the Business and Professions Code is repealed.

SEC. 21.SEC. 22.

 Section 5096.15 of the Business and Professions Code is repealed.

SEC. 22.SEC. 23.

 Section 5109 of the Business and Professions Code is amended to read:

5109.
 The expiration, cancellation, forfeiture, or suspension of a license or other authority to practice public accountancy by operation of law or by order or decision of the board or a court of law, or the voluntary surrender of a license by a licensee shall not deprive the board of jurisdiction to commence or proceed with any investigation of or action or disciplinary proceeding against the licensee, or to render a decision suspending or revoking the license.

SEC. 23.SEC. 24.

 Section 5116.6 of the Business and Professions Code is amended to read:

5116.6.
 Anywhere the term “licensee” is used in the article it shall include certified public accountants, public accountants, partnerships, corporations, individuals licensed out of state practicing in this state under cross-border practice, holders of alternative firm registrations, other persons licensed, registered, or otherwise authorized to practice public accountancy under this chapter, and persons who are in violation of any provision of Article 5.1 (commencing with Section 5096).

SEC. 24.SEC. 25.

 Section 5134 of the Business and Professions Code is amended to read:

5134.
 The amount of fees prescribed by this chapter is as follows:
(a) The fee to be charged to each applicant for the certified public accountant examination shall be fixed by the board at an amount not to exceed six hundred dollars ($600). The board may charge a reexamination fee not to exceed seventy-five dollars ($75) for each part that is subject to reexamination.
(b) The fee to be charged to out-of-state candidates for the certified public accountant examination shall be fixed by the board at an amount not to exceed six hundred dollars ($600) per candidate.
(c) The application fee to be charged to each applicant for issuance of a certified public accountant certificate shall be fixed by the board at an amount not to exceed two hundred fifty dollars ($250).
(d) The application fee to be charged to each applicant for issuance of a certified public accountant certificate by waiver of examination shall be fixed by the board at an amount not to exceed two hundred fifty dollars ($250).
(e) The fee to be charged to each applicant for registration as a partnership or professional corporation shall be fixed by the board at an amount not to exceed two hundred fifty dollars ($250).
(f) The board shall fix the biennial renewal fee so that, together with the estimated amount from revenue other than that generated by subdivisions (a) to (e), inclusive, the reserve balance in the board’s contingent fund shall be equal to approximately nine months of annual authorized expenditures. Any increase in the renewal fee shall be made by regulation upon a determination by the board that additional moneys are required to fund authorized expenditures and maintain the board’s contingent fund reserve balance equal to nine months of estimated annual authorized expenditures in the fiscal year in which the expenditures will occur. The biennial fee for the renewal of each of the permits to engage in the practice of public accountancy specified in Section 5070 shall not exceed two hundred fifty dollars ($250).
(g) The delinquency fee shall be 50 percent of the accrued renewal fee.
(h) The initial permit fee is an amount equal to the renewal fee in effect on the last regular renewal date before the date on which the permit is issued, except that, if the permit is issued one year or less before it will expire, then the initial permit fee is an amount equal to 50 percent of the renewal fee in effect on the last regular renewal date before the date on which the permit is issued. The board may, by regulation, provide for the waiver or refund of the initial permit fee where the permit is issued less than 45 days before the date on which it will expire.
(i) The fee to be charged for the certification of documents evidencing passage of the certified public accountant examination, the certification of documents evidencing the grades received on the certified public accountant examination, or the certification of documents evidencing licensure shall be twenty-five dollars ($25).
(j) The board shall fix the fees in accordance with the limits of this section and, on and after July 1, 1990, any increase in a fee fixed by the board shall be pursuant to regulation duly adopted by the board in accordance with the limits of this section.
(k) It is the intent of the Legislature that, to ease entry into the public accounting profession in California, any administrative cost to the board related to the certified public accountant examination or issuance of the certified public accountant certificate that exceeds the maximum fees authorized by this section shall be covered by the fees charged for the biennial renewal of the permit to practice.

SEC. 26.

 The Legislature hereby finds and declares that it is the intent of the California Board of Accountancy to provide those consumers who elect to use the services of certified public accountants and firms licensed in the other 54 jurisdictions with access to licensing information for each of those jurisdictions through the board’s Web site.

SEC. 25.SEC. 27.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.