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State Board Report

July 2016

NASBA has already provided the California Board of Accountancy with preliminary assessments of some State Accountancy Boards’ enforcement practices, Katrina L. Salazar, President of the California Board of Accountancy, reported to the Regional Meetings, with final assessments to be provided in September 2016. She explained that California Senate Bill 1405 allows for a CPA from another jurisdiction to practice in California with no notice and no fee if that jurisdiction has enforcement practices that meet or exceed those of the California Board of Accountancy. The California Board requested NASBA’s assistance in making those assessments, based on the NASBA Guiding Principles of Enforcement. Ms. Salazar pointed out that NASBA will continue to work with states not determined to be equivalent by September, but by July 2017 the California Board will decide whether they need to initiate rulemaking to remove a jurisdiction from the no notice, no fee mobility provision. CPAs from a removed jurisdiction would still be able to practice in California, but would be required to give prior notice and pay a fee.

NASBA Regulatory Affairs Director Stacey L. Grooms assured the Boards: "This is not a cookie cutter approach. It is a process of saying what are some of the key elements for effective enforcement. The practices are not going to look the same in every jurisdiction. But does each Board meet the Guiding Principles?" She commented that NASBA was honored that the California Board had adopted the Guiding Principles, which NASBA finalized in May 2015. The assessment process has been particularly helpful to some Boards, Ms. Grooms noted: "Several Boards have said, "Now that we know that we don’t have that [ability], we can go back and ask for what other Boards have.’"

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