A look back: legislative successes in 2013--and what 2014 May hold.

• Author: Allen, Bruce C.
• Position: Capitol Beat

As we do every year at this time. we take a moment to look back at the events ol. the last year and it has been a successful 2013 for CalCPA's government relations efforts.

We were successful in working with the Legislature and the governor's office to advocate for legislation (AB 1412) to prevent the unfair retroactive taxation of hundreds of California entrepreneurs. We proactively worked with the California Board a Accountancy to assist in navigating legislation SB 823) to assist CPA candidates' transition to the new 150-hour education requirements for CPA licensure. And on the regulatory front, we were able to work closely with the CBA to implement mobility legislation that will allow for a seamless transition into the new interstate practice legislation and equip CPAs to better serve their clients across state borders.

Through these efforts, we avoided potential ducats to the CPA profession--including a prohibition on contingency fees associated with some CPA services and a requirement for CPAs to register as tax agents with the state to represent a taxpayer before a county assessor.

Legislation governing municipal audits continued to surface to increase requirements on CPAs working on audits for local municipalities, redevelopment zones, school districts and school bonds.

Because of hard work and established relationships with key members of the Legislature--and a great grassroots effort by members--we were able to work collaboratively with all stakeholders and achieve a positive outcome.

Looking Ahead to 2014

Each legislative year brings with it its own unique set of hot issues. However, since the next legislative year will be the final year of the two-year session and an election year we expect some unresolved issues from 2013 to resurface in 2014, including:

* Legislation to regulate tax agents;

* The use of contingency fees; and

* Municipal audit oversight.

As for new issues, we expect to see several issues related to the recent rollout of the Affordable Care Act in California. The implementation of the new program will have a large impact on almost every state, local and private entity within the state. How the Legislature responds lo the many taxation, audit or business advisory issues associated with the program's implementation could have a major impact on the CPA profession and their clients.

Another issue that could surface in 2014 is tax on services. Late in 2013 the nonpartisan Legislative Analyst's Office released a...