New faces on CBA: Petersen, Chi appointed to CBA; practice privilege modifications.

• Author: Allen, Bruce C.
• Position: California Board of Accountancy - Charles Drott - Angela Chi - Robert Petersen

Gov. Arnold Schwarzenegger appointed CalCPA members Robert Petersen, CPA, and Angela Chi, CPA, to the California Board of Accountancy March 15. The appointees replace CalCPA member Charles Drott, who resigned from the board, and CalCPA member Olga Martinez, whose term expired.

Martinez and Drott were appointed by former Gov. Gray Davis. Drott resigned and vacated his seat in 2005. Martinez's term expired in November, but continued serving a grace period.

Martinez serves as editor of the East Bay Chapter Bulletin and is with the firm of Glenn Dawson, LLP in Walnut Creek. Despite a busy tax practice and the personal sacrifices that had to be made, her attendance at CBA meetings was exemplary and participation in CBA meetings was a priority. The profession owes a debt of gratitude to Martinez for her service on the board during a very volatile time.

Saratoga resident Petersen has been a partner with Petrinovich, Pugh & Co since 2001, when he combined Petersen & Associates with the firm. He is a former CalCPA president and up until the time of his appointment was CalCPA Government Relations Committee chair.

Petersen has been active in both CalCPA and the AICPA, and is a popular tax and ethics instructor with the California CPA Education Foundation.

Chi, from Fresno, also is active in CalCPA and serves on the Fresno Chapter board of directors. She is a partner in Watts, Campbell, Chi and Baker and is an AICPA member.

Petersen and Chi attended their first CBA meeting March 16-17.

California's Practice Privilege Law to be Modified

A law became effective in January that required out-of-state CPAs providing any service to a California client, other than personal and estate tax returns, to obtain a practice privilege from the CBA. Immediately after the law's implementation, significant unintended consequences surfaced--and CalCPA sprung into action.

California's new law had replaced the old incidental and temporary exemption law that had allowed out-of-state CPAs and foreign accountants to provide services to clients in California as long as those services were incidental to their practice in another state or country.

The old exemption allowed practitioners to physically enter California to provide those services.

In January, that law was replaced with a requirement that out-of-state CPAs obtain a practice privilege, and foreign accountants would not be able to practice in California without a license.

The consequence of this change was significant...