Bills pending: California legislature heading into the homestretch.

• Author: Allen, Bruce C.
• Position: CapitolBeat

For the first time in years, the summer months of the legislative session will not be dominated by a tardy budget plan. Rather, the attention will be on the hundreds of legislative bills that remain in the hands of assembly members and senators. Many of these bills can have a drastic impact on the CPA profession, small businesses and our personal lives.

Legislation dealing with municipal government: audits, practice privilege sale harbor, the implementation of the new ethics and education requirements for licensure, retired licenses for CPAs and the elimination of the requirement that public company restatements be filed with the California Board of Accountancy -- among others -- are still being debated in the Legislature.

Without the distraction of a late budget, these pending bills are the top priority;

In the meantime, special interest groups an rumored to be attempting to advance an agenda that targets groups and industries they believe have unfairly escaped the sting of recent budget cuts. Chief among their plans is to create1 new revenues for programs. Many suspect that the top targets for the new revenues will be added taxes and fees on professionals, businesses, the financial industry and high-income earners. It's expected that these groups will lean heavily on their Democrat allies, especially Gov. Jerry Brown, to move revenue proposals forward. The recent tax imposed on out-of-state internet vendors (Amazon) is an example of this locus.

On the election front, recently passed reapportionment and open primary reforms have the potential lo drastically change California's political landscape in 2012.

Reapportionment by the independent, bipartisan Citizens Redistricting Commission will redraw district boundaries for senate, assembly; Board of Initialization and Congressional seats. The Commission, established under voter approved Proposition 11 of 2008, will likely create much more competitive districts than the gerrymandered districts established by the Legislature.

The Commission is using 2010 U.S. Census data, which indicated that many traditional population centers such as Los Angeles and San Francisco should lose1 representation to surrounding suburban areas. This can lead to some incumbent members being either cut off from their power base or lumped into the same district as another incumbent. Incumbents would then be expected to face much more challenging campaigns, opening the door for new representatives. Preliminary district...