Next comes regulation: with the legislative session over, regulators gear up.

• Author: Tindel, Jeannie
• Position: Government Relations - New tax laws await interpretation

It's a familiar drill. Congress passes a new tax act, which results in new tax codes. But the tax code isn't completely relevant until you know what regulations the IRS will propose to define and interpret the code.

"As a profession, we find ourselves in a similar situation with the Sarbanes-Oxley Act and California's recently passed legislation," says Hal Schultz, a former CalCPA president. "How the regulatory process plays out in California will determine if the public interest is truly being served."

We've Only Just Begun

We are embarking on a lengthy, involved process, explains Bruce Allen, CalCPA's veteran government relations director. He says the process will unfold something like this:

* The California Board of Accountancy meets to discuss new state and federal laws.

* Following its meeting, various CBA committees, task forces and staff will draft proposed regulations.

* Notices will be issued for public hearings and comments on the proposed regulations.

* Hearings will be held, comments will be weighed, the proposed regs will be revised as necessary, and final regs will be issued.

"CalCPA will closely monitor this entire process," says Allen. "We will participate and lend support to regulators as much as possible."

CalCPA Government Relations Committee chair Michael Ueltzen echoes this conviction: "We are working on members'--and the public's--behalf. Members can count on us to provide them with new information as soon as it is available through BUZZ."

In fact, Ueltzen adds that a critical element during the regulatory phase will be member input. "As regulations are proposed, we need to know how they will impact not only our members' practices, but, more importantly, their clients' businesses and the users of the financial information."

"The next year will require vigilance on the part of CalCPA members and staff," says Ueltzen. "It will be imperative that members participate."

Members' Voices Are Heard

"The hallmark of our success over the next several months will rely on CPAs being involved," adds Schultz. "The letters, faxes, e-mails, phone calls and visits our members made to legislators last year created an enormous buzz. I'll never forget the image-and impact--of Assembly Member Wyman holding up a stack of hundreds of letters from CPAs at an Assembly Business and Professions Committee meeting last spring."

According to Schultz and others who were there, the message to legislators was clear: We need legislation that is...