CPA day at the Capitol: CalCPA members increase profession's visibility.

• Author: Allen, Bruce C.
• Position: California Society of Certified Public Accountants

More than 100 California CPAs arrived at the state Capitol May 10 to increase the profession's visibility and share concerns with legislators on issues important to the profession and the state.

CPAs were briefed on key issues, then assigned to teams that met with more than 100 legislators to educate those lawmakers and staff on the real-world consequences of various legislation.

In addition to meeting with legislators at the Capitol, our CPA members sat in on hearings and caught up with their peers from around the state. Among the issues CPAs discussed with legislators were practice privilege, financial literacy and "professional fiduciaries."

Everyone who participated had a great time and said they enjoyed speaking to legislators and staff on behalf of the profession.

Additionally, feedback from the Capitol is that legislators also were happy to hear from their constituents about issues of concern.

This event was invaluable in increasing the visibility of the CPA profession in California. In fact, the day was such a success that CalCPA plans to hold a similar event in early spring next year to bring new issues to legislators' attention.

Because of term limits many lawmakers have no experience with the CPA profession. Some of them were meeting with a CPA for the very first time.

Practice Privilege

CalCPA-sponsored AB 1868 (Bermudez) would ease interstate commerce by clarifying conditions under which CPAs from other states can provide services to California taxpayers.

The bill addresses urgent issues created by an interpretation of SB 1543 (Figueroa), Chapter 921, statutes of 2004 which became effective Jan. 1, 2006. In addition to CalCPA, AB 1868 is supported by the California Board of Accountancy and international accounting firms.

The bill returns the law to that which existed prior to Jan. 1, 2006, with the addition of some important consumer protections.

Out-of-state CPAs will be required to register with the CBA if they physically enter California or solicit California clients unless the services are incident to an engagement in another state.

As of Jan. 1, 2006, all out-of-state CPAs providing any services to California business clients were required to register with the CBA whether or not they physically entered the state. The law was unworkable for the CBA, the CPA profession and California taxpayers.

AB 1868 will provide immediate relief and allow time for all stakeholders to develop a long-term solution that will preserve...