The way forward: new laws and regs represent fundamental changes for California CPAs.

At CalCPA, OUT job is to advocate for you. We do this daily with the Legislature, regulators and in the court of public opinion. The results of these labors--a partnership between members, staff and strategic partners--can be quickly felt, such as when a CalCPA member is placed as an expert voice in the media, or they may take years of dedicated resolve such as recently was achieved with the 150-hour requirement and the quest for California licensees to be considered substantially equivalent nationally.

Highlighted here are the fruits of our 2009 legislative efforts, along with the fundamental change set forth by the California Board of Accountancy regarding continuing education.

150 Hours Required

SB 819 (Yee, Niello, Ma) Delivers 11th Hour Solution

How it Affects You

* Changes California law so that CPA candidates applying for licensure after Jan. 1, 2014, will have to meet the Uniform Accountancy Act's 150-hour educational requirement prior to licensure, which includes a total of 150 semester hours, as well as a bachelor's degree and one year of work experience.

* Sunsets Pathway 1 (licensure with 120 units and two years of experience) effective Jan. 1, 2014.

* By adopting this national standard, California should be considered a substantially equivalent state for purposes of mobility, allowing current California CPAs to provide services in most other states without first notifying the affected state board of accountancy and without paying a fee to the state.

* CPAs licensed prior to 2014 automatically will be grandfathered in as substantially equivalent.

* Some states only require that out-of-state CPAs register with their board of accountancy when the CPA is providing audit services to an entity headquartered in that other state. A few states also have other rules, so check the state's law prior to providing services.

Mandatory Peer Review

AB 138 (Hayashi) Aligns California With Majority of Nation

How it Affects You

* Effective Jan. 1, 2010, requires mandatory peer reviews for firms and sole practitioners providing audits, reviews and compilations.

* Those firms and sole practitioners with the last digits of the license number 1-33 will be required to submit to the CBA no later than July 1, 2011, evidence of completion of a peer review within the previous three years.

* All other affected firms and individuals will be phased in over the next two years.

* Since peer review already is required for many engagements and for AICPA...