Because trust matters: Sacramento CPA Ken Macias speaks out on California's reform proposals; Ken Macias understands the public trust.

After Orange County found itself mired in bankruptcy and scandal several years ago, it turned to Macias' firm, Macias, Gini & Company, to take over its annual external audit. Macias understands that his clients--and the public--need fair, accurate reporting of financial information.

In fact, his firm, one of the largest Latino-owned businesses in the state, is the leading auditor of counties and municipalities in California. When Ken Macias speaks about the public sector, he proceeds from a foundation of deep knowledge and experience in the financial and political machinery of government.

In late April, Macias joined almost 30 of his fellow CalCPA members at an Assembly Business and Professions Committee hearing. He and other CalCPA members voiced strong opposition to the accounting reform legislation package being considered by the committee, including AB 1995 (Correa) and AB 2873 (Frommer).

Their presence and actions profoundly influenced the proceedings. Members were able to raise legislators' awareness of the legislation's negative impact on business; expose flaws that would make the bills detrimental to the public interest; and call into question the bills' usefulness as proposed.

California CPA sought out Macias following the hearing to get his take on the impact of the proposed reforms. Here's what he has to say:

How did you come to oppose AB 1995 and the other bills in Assembly Member Lou Correa's reform package?

It wasn't even on my radar until recently, but what got my attention was an e-mail alert sent by Sacramento Chapter Coordinator Brenda Kaku in mid-April. The alert noted the new bill and other legislation coming down in Sacramento and pointed out very specific ways my business could be hurt.

So what did you do next?

Well, although I've never met Assemblyman Correa, I figured he'd know who I am by virtue of my connection as auditor of Orange County where his constituents are. So, I contacted his office for a meeting to discuss his bill, AB 1995. I figured he was well intentioned but just needed to understand more about accounting and auditing to draft good legislation that would actually protect people without harming the business community.

What happened?

He did not personally respond. I ended up meeting with his consultants, David Pacheco and Jay Greenwood, the night before the Business and Professions Committee hearing April 23.

What did they do?

They listened politely, but didn't offer anything, nor did they offer a meeting with Assemblyman Correa.

And how did that make you feel?

Not good. Although I do understand that our elected officials are busy people, I just figured the assemblyman would choose to spend at least a little time with me. We're both from the financial world, we're both Hispanic, and we're both concerned about our state, its economy and its people. That's a lot of common ground.

What would you have told Assemblyman Correa if he'd given you the chance to meet?

I would have told him what I told his consultants: that as it was drafted at the time, AB 1995 is detrimental to businesses, CPAs and their clients. I have primarily two...