Mid-year Check: Where Do We Stand & Where Are We Going?

• Author: Fox, Jason
• Position: CapitolBeat

After an eventful start to the year, CalCPA's advocacy program has notched some positive progress and is prepared to keep the momentum.

The year stearted with the usual influx of legislative proposals as the governor's administration and legislative leaders pressed ahead to craft policy solutions to a wide range of challenges facing California--particularly those that have been exacerbated by the lingering COVID-19 public health crisis.

However, ongoing health and safety protocols continued to complicate the logistical process of legislating. Public engagement was expanded through remote hearings, but limited with less transparency and opportunities for meaningful input. Politically, tensions between a governor, still wielding significant executive authoritygranted during the height of the pandemic, and legislative leaders, struggling to insert their policy priorities, often bred delays.

The PPP Conformity Tale

One of the most pressing things that dominated the first few months of this year related to the Paycheck Protection Program (PPP), which became a lifeline that provided California small businesses with immediate, and much needed, financial support during the economic uncertainty.

However, California's inability to timely address tax rules associated with PPP loans became the cornerstone of one of the most challenging tax seasons in recent memory. A long winding road of rule changes in Washington and Sacramento, delayed (or no) guidance, and tax deadline pressures created confusion and stress for many PPP recipients and the CPAs that advise them.

CalCPA was able to shake out some state action related to PPP loans after meetings with key decision makers and advocating for clear guidance for CPAs and their clients.

While the final rules (AB 80) aren't perfect and damage from delayed state action may take some time to clean up, CalCPA advocacy was able to facilitate some direction and clarity on an issue that has been a priority for many CalCPA members and their clients.

Following legislative action, CalCPA connected with the FTB to get additional guidance and direction on implementation of the new rules.

Licensing Flexibility

The California Board of Accountancy (CBA) is sponsoring AB 298 (Irwin), which makes two adjustments to the existing licensure process to provide increased flexibility and efficiency for applicants as they work toward their license.

The first change fast-tracks the process for a candidate to sit for the Uniform CPA...