Bill Text: CA SB887 | 2023-2024 | Regular Session | Amended
Bill Title: Consumer affairs.
Spectrum: Committee Bill
Status: (Passed) 2023-10-08 - Chaptered by Secretary of State. Chapter 510, Statutes of 2023. [SB887 Detail]
Download: California-2023-SB887-Amended.html
Amended
IN
Senate
April 20, 2023 |
Introduced by Committee on Business, Professions and Economic Development (Senators Roth (Chair), Alvarado-Gil, Archuleta, Ashby, Becker, Dodd, Eggman, Glazer, Nguyen, Niello, Smallwood-Cuevas, Wahab, and Wilk) |
March 14, 2023 |
LEGISLATIVE COUNSEL'S DIGEST
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Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program:Bill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 115.8 of the Business and Professions Code is amended to read:115.8.
The Department of Consumer Affairs shall compile information onSEC. 2.
Section 472.4 of the Business and Professions Code is amended to read:472.4.
In addition to any other requirements of this chapter, the department shall do all of the following:SECTION 1.SEC. 3.
Section 2530.3 of the Business and Professions Code is amended to read:2530.3.
(a) A person represents themselves to be a speech-language pathologist when they hold themselves out to the public by any title or description of services incorporating the words “speech pathologist,” “speech pathology,” “speech therapy,” “speech correction,” “speech correctionist,” “speech therapist,” “speech clinic,” “speech clinician,” “language pathologist,” “language pathology,” “logopedics,” “logopedist,” “communicology,” “communicologist,” “aphasiologist,” “voice therapy,” “voice therapist,” “voice pathology,” or “voice pathologist,” “language therapist,” or “phoniatrist,” or any similar titles; or when they purport to treat stuttering, stammering, or other disorders of speech.SEC. 2.SEC. 4.
Section 2532 of the Business and Professions Code is amended to read:2532.
No person shall engage in the practice of speech-language pathology or audiology or represent themselves as a speech-language pathologist or audiologist unless they are licensed in accordance with this chapter.SEC. 3.SEC. 5.
Section 2532.5 of the Business and Professions Code is amended to read:2532.5.
Every person holding a license under this chapter shall display it conspicuously in their primary place of practice.SEC. 4.SEC. 6.
Section 2535.4 of the Business and Professions Code is amended to read:2535.4.
A person who fails to renew their license within the five years after its expiration may not renew it, and it may not be restored, reissued, or reinstated thereafter, but that person may apply for and obtain a new license if they meet all of the following requirements:SEC. 5.SEC. 7.
Section 2537.3 of the Business and Professions Code is amended to read:2537.3.
The income of a speech-language pathology corporation or an audiology corporation attributable to professional services rendered while a shareholder is a disqualified person, as defined in Section 13401 of the Corporations Code, shall not in any manner accrue to the benefit of that shareholder or their share in the speech-language pathology or audiology corporation.SEC. 6.SEC. 8.
Section 2538.20 of the Business and Professions Code is amended to read:2538.20.
It is unlawful for an individual to engage in the practice of fitting or selling hearing aids, or to display a sign or in any other way to advertise or hold themselves out as being so engaged without having first obtained a license from the board under the provisions of this article. Nothing in this article shall prohibit a corporation, partnership, trust, association or other like organization maintaining an established business address from engaging in the business of fitting or selling, or offering for sale, hearing aids at retail without a license, provided that any and all fitting or selling of hearing aids is conducted by the individuals who are licensed pursuant to the provisions of this article. A person whose license as a hearing aid dispenser has been suspended or revoked shall not be the proprietor of a business that engages in the practice of fitting or selling hearing aids nor shall that person be a partner, shareholder, member, or fiduciary in a partnership, corporation, association, or trust that maintains or operates that business, during the period of the suspension or revocation. This restriction shall not apply to stock ownership in a corporation that is listed on a stock exchange regulated by the Securities and Exchange Commission if the stock is acquired in a transaction conducted through that stock exchange.SEC. 7.SEC. 9.
Section 2538.21 of the Business and Professions Code is amended to read:2538.21.
This article does not apply to a person engaged in the practice of fitting hearing aids if their practice is for a governmental agency, or private clinic, or is part of the academic curriculum of an accredited institution of higher education, or part of a program conducted by a public, charitable institution or other nonprofit organization, and who does not engage directly or indirectly in the sale or offering for sale of hearing aids.SEC. 8.SEC. 10.
Section 2538.27 of the Business and Professions Code is amended to read:2538.27.
(a) An applicant who has fulfilled the requirements of Section 2538.24 and has made application therefor, may have a temporary license issued to them upon satisfactory proof to the board that the applicant holds a hearing aid dispenser’s license in another state, that the licensee has not been subject to formal disciplinary action by another licensing authority, and that the applicant has been engaged in the fitting and sale of hearing aids for the two years immediately prior to application.SEC. 9.SEC. 11.
Section 2538.28 of the Business and Professions Code is amended to read:2538.28.
(a) An applicant who has fulfilled the requirements of Section 2538.24, and has made application therefor, and who proves to the satisfaction of the board that they will be supervised and trained by a hearing aid dispenser who is approved by the board may have a trainee license issued to them. The trainee license shall entitle the trainee licensee to fit or sell hearing aids as set forth in regulations of the board. The supervising dispenser shall be responsible for any acts or omissions committed by a trainee licensee under their supervision that may constitute a violation of this chapter.SEC. 10.SEC. 12.
Section 2538.30 of the Business and Professions Code is amended to read:2538.30.
(a) A temporary or trainee licensee shall not be the sole proprietor of, manage, or independently operate a business that engages in the fitting or sale of hearing aids.SEC. 11.SEC. 13.
Section 2538.32 of the Business and Professions Code is amended to read:2538.32.
Every applicant who obtains a passing score determined by the Angoff criterion-referenced method of establishing the point in each examination shall be deemed to have passed that examination. An applicant shall pass the written examination before they may take the practical examination. An applicant shall obtain a passing score on both the written and the practical examination in order to be issued a license.SEC. 12.SEC. 14.
Section 2538.33 of the Business and Professions Code is amended to read:2538.33.
(a) Before engaging in the practice of fitting or selling hearing aids, each licensee shall notify the board in writing of the address or addresses where they are to engage, or intend to engage, in the practice of fitting or selling hearing aids, and of any changes in their place of business within 30 days of engaging in that practice.SEC. 13.SEC. 15.
Section 2538.34 of the Business and Professions Code is amended to read:2538.34.
(a) Every licensee who engages in the practice of fitting or selling hearing aids shall have and maintain an established retail business address to engage in that fitting or selling, routinely open for service to customers or clients. The address of the licensee’s place of business shall be registered with the board as provided in Section 2538.33.SEC. 14.SEC. 16.
Section 2538.36 of the Business and Professions Code is amended to read:2538.36.
(a) Whenever any of the following conditions are found to exist, either from observations by the licensee or based on information furnished by the prospective hearing aid user, a licensee shall, before fitting or selling a hearing aid to any individual, suggest to that individual in writing that it would be in the individual’s best interest to consult with a licensed physician and surgeon specializing in diseases of the ear, or, if none are available in the community, then to any duly licensed physician and surgeon:SEC. 15.SEC. 17.
Section 2538.40 of the Business and Professions Code is amended to read:2538.40.
(a) Upon denial of an application for license, the board shall notify the applicant in writing of the following:SEC. 16.SEC. 18.
Section 2538.49 of the Business and Professions Code is amended to read:2538.49.
It is unlawful for a licensed hearing aid dispenser to fit or sell a hearing aid unless they first do all of the following:SEC. 17.SEC. 19.
Section 2538.50 of the Business and Professions Code is amended to read:2538.50.
It is unlawful to advertise by displaying a sign or otherwise or hold themselves out to be a person engaged in the practice of fitting or selling hearing aids without having at the time of so doing a valid, unrevoked license or temporary license.SEC. 18.SEC. 20.
Section 2538.51 of the Business and Professions Code is amended to read:2538.51.
It is unlawful to engage in the practice of fitting or selling hearing aids without the licensee having and maintaining an established business address, routinely open for service to their clients.SEC. 19.SEC. 21.
Section 2538.56 of the Business and Professions Code is amended to read:2538.56.
A license that is not renewed within three years after its expiration may not be renewed, restored, reissued, or reinstated thereafter, but the holder of the expired license may apply for and obtain a new license if all of the following apply:SEC. 20.SEC. 22.
Section 2539.1 of the Business and Professions Code is amended to read:2539.1.
(a) (1) On and after January 1, 2010, in addition to satisfying the licensure and examination requirements described in Sections 2532, 2532.2, and 2532.25, no licensed audiologist shall sell hearing aids unless they complete an application for a dispensing audiology license, pay all applicable fees, and pass an examination, approved by the board, relating to selling hearing aids.SEC. 21.SEC. 23.
Section 2539.6 of the Business and Professions Code is amended to read:2539.6.
(a) Whenever any of the following conditions are found to exist either from observations by the licensed audiologist or on the basis of information furnished by the prospective hearing aid user, a licensed audiologist shall, prior to fitting or selling a hearing aid to any individual, suggest to that individual in writing that the individual’s best interests would be served if they consult a licensed physician and surgeon specializing in diseases of the ear or, if none are available in the community, a duly licensed physician and surgeon:SEC. 22.SEC. 24.
Section 2710 of the Business and Professions Code is amended to read:2710.
(a) Special meetings may be held at such times as the board may elect, or on the call of the president of the board, or of not less than three members thereof.SEC. 23.SEC. 25.
Section 2728 of the Business and Professions Code is amended to read:2728.
If adequate medical and nursing supervision by a professional nurse or nurses is provided, nursing service may be given by attendants, psychiatric technicians, or psychiatric technician interim permittees in institutions under the jurisdiction of the State Department of State Hospitals or the State Department of Developmental Services or subject to visitation by the State Department of Public Health or the Department of Corrections and Rehabilitation. Services given by a psychiatric technician shall be limited to services that they are authorized to perform by their license as a psychiatric technician. Services given by a psychiatric technician interim permittee shall be limited to skills included in their basic course of study and performed under the supervision of a licensed psychiatric technician or registered nurse.SEC. 24.SEC. 26.
Section 2732 of the Business and Professions Code is amended to read:2732.
No person shall engage in the practice of nursing, as defined in Section 2725, without holding a license that is in an active status issued under this chapter except as otherwise provided in this act.SEC. 25.SEC. 27.
Section 2732.1 of the Business and Professions Code is amended to read:2732.1.
(a) An applicant for license by examination shall submit a written application in the form prescribed by the board.SEC. 26.SEC. 28.
Section 2733 of the Business and Professions Code is amended to read:2733.
(a) (1) (A) Upon approval of an application filed pursuant to subdivision (b) of Section 2732.1, and upon the payment of the fee prescribed by subdivision (k) of Section 2815, the board may issue a temporary license to practice professional nursing, and a temporary certificate to practice as a certified public health nurse for a period of six months from the date of issuance.SEC. 27.SEC. 29.
Section 2734 of the Business and Professions Code is amended to read:2734.
Upon application in writing to the board and payment of the biennial renewal fee, a licensee may have their license placed in an inactive status for an indefinite period of time. A licensee whose license is in an inactive status may not practice nursing. However, a licensee does not have to comply with the continuing education standards of Section 2811.5.SEC. 28.SEC. 30.
Section 2736 of the Business and Professions Code is amended to read:2736.
(a) An applicant for licensure as a registered nurse shall comply with each of the following:SEC. 29.SEC. 31.
Section 2738 of the Business and Professions Code is repealed.SEC. 30.SEC. 32.
Section 2746.8 of the Business and Professions Code is amended to read:2746.8.
(a) Each certificate issued pursuant to this article shall be renewable biennially, and each person holding a certificate under this article shall apply for a renewal of the certificate and pay the biennial renewal fee required by Section 2815.5 every two years on or before the last day of the month following the month in which their birthday occurs, beginning with the second birthday following the date on which the certificate was issued, whereupon the board shall renew the certificate.SEC. 31.SEC. 33.
Section 2759 of the Business and Professions Code is amended to read:2759.
The board shall discipline the holder of any license, whose default has been entered or who has been heard by the board and found guilty, by any of the following methods:SEC. 32.SEC. 34.
Section 2760 of the Business and Professions Code is amended to read:2760.
(a) If the holder of a license is suspended, they shall not be entitled to practice nursing during the term of suspension.SEC. 33.SEC. 35.
Section 2761 of the Business and Professions Code is amended to read:2761.
(a) The board may take disciplinary action against a certified or licensed nurse or deny an application for a certificate or license for any of the following:SEC. 34.SEC. 36.
Section 2762 of the Business and Professions Code is amended to read:2762.
In addition to other acts constituting unprofessional conduct within the meaning of this chapter, it is unprofessional conduct for a person licensed under this chapter to do any of the following:SEC. 35.SEC. 37.
Section 2765 of the Business and Professions Code is amended to read:2765.
A plea or verdict of guilty or a conviction following a plea of nolo contendere made to a charge substantially related to the qualifications, functions and duties of a registered nurse is deemed to be a conviction within the meaning of this article. The board may order the license or certificate suspended or revoked, or may decline to issue a license or certificate, when the time for appeal has elapsed, or the judgment of conviction has been affirmed on appeal or when an order granting probation is made suspending the imposition of sentence, irrespective of a subsequent order under the provisions of Section 1203.4 of the Penal Code allowing the person to withdraw a plea of guilty and to enter a plea of not guilty, or setting aside the verdict of guilty, or dismissing the accusation, information or indictment.SEC. 36.SEC. 38.
Section 2770.11 of the Business and Professions Code is amended to read:2770.11.
(a) Each registered nurse who requests participation in an intervention program shall agree to cooperate with the rehabilitation program designed by the committee and approved by the program manager. Any failure to comply with a rehabilitation program may result in termination of the registered nurse’s participation in a program. The name and license number of a registered nurse who is terminated for any reason, other than successful completion, shall be reported to the board’s enforcement program.SEC. 37.SEC. 39.
Section 2770.7 of the Business and Professions Code is amended to read:2770.7.
(a) The board shall establish criteria for the acceptance, denial, or termination of registered nurses in the intervention program. Only those registered nurses who have voluntarily requested to participate in the intervention program shall participate in the program.SEC. 38.SEC. 40.
Section 2780 of the Business and Professions Code is amended to read:2780.
The income of a nursing corporation attributable to professional services rendered while a shareholder is a disqualified person, as defined in Section 13401 of the Corporations Code, shall not in any manner accrue to the benefit of the shareholder or their shares in the nursing corporation.SEC. 39.SEC. 41.
Section 2785.6 of the Business and Professions Code is amended to read:2785.6.
There is created within the jurisdiction of the board a Nursing Education and Workforce Advisory Committee, which shall solicit input from approved nursing programs and members of the nursing and health care professions to study and recommend nursing education standards and solutions to workforce issues to the board.SEC. 40.SEC. 42.
Section 2800 of the Business and Professions Code is amended to read:2800.
None of the sections in this article, except Sections 2796 and 2797, shall be applicable to any person or persons specifically exempted from the general provisions of this act by Section 2731 hereof, or to schools conducted by any well-recognized church or denomination for the purpose of training the adherents of the church or denomination in the care of the sick in accordance with its religious tenets. An adherent of any well-recognized church or denomination who engages in nursing or the care of the sick in connection with the practice of the religious tenets of the well-recognized church or denomination may use the word “nurse” in connection with or following their name, provided they shall not use the title “registered nurse,” the letters “R.N.,” the words “graduate nurse,” “trained nurse,” “nurse anesthetist,” or any other name, word or symbol in connection with or following their name so as to lead another or others to believe that they are a professional nurse licensed under the provisions of this chapter.SEC. 41.SEC. 43.
Section 2811 of the Business and Professions Code is amended to read:2811.
(a) Each person holding a regular renewable license under this chapter, whether in an active or inactive status, shall apply for a renewal of their license and pay the biennial renewal fee required by this chapter every two years on or before the last day of the month following the month in which their birthday occurs, beginning with the second birthday following the date on which the license was issued, whereupon the board shall renew the license.SEC. 44.
Section 2811.5 of the Business and Professions Code is amended to read:2811.5.
(a) Each person renewing their license under Section 2811 shall submit proof satisfactory to the board that, during the preceding two-year period, they have been informed of the developments in the registered nurse field or in any special area of practice engaged in by the licensee, occurring since the last renewal thereof, either by pursuing a course or courses of continuing education in the registered nurse field or relevant to the practice of the licensee, and approved by the board, or by other means deemed equivalent by the board.SEC. 42.SEC. 45.
Section 2816 of the Business and Professions Code is amended to read:2816.
The nonrefundable fee to be paid by a registered nurse for an evaluation of their qualifications to use the title “public health nurse” shall not be less than three hundred dollars ($300) or more than one thousand dollars ($1,000). The fee to be paid upon the application for renewal of the certificate to practice as a public health nurse shall not be less than one hundred twenty-five dollars ($125) and not more than five hundred dollars ($500). The penalty fee for failure to renew a certificate to practice as a public health nurse within the prescribed time shall be 50 percent of the renewal fee in effect on the date of renewal of the certificate, but not less than sixty-two dollars and fifty cents ($62.50), and not more than two hundred fifty dollars ($250). All fees payable under this section shall be collected by and paid to the Board of Registered Nursing Fund. It is the intention of the Legislature that the costs of carrying out the purposes of this article shall be covered by the revenue collected pursuant to this section. The board shall refund any registered nurse who paid more than three hundred dollars ($300) for an evaluation of their qualifications to use the title “public health nurse” between April 5, 2018, and December 31, 2018.SEC. 43.SEC. 46.
Section 2826 of the Business and Professions Code is amended to read:2826.
As used in this article:SEC. 44.SEC. 47.
Section 2828 of the Business and Professions Code is amended to read:2828.
In an acute care facility, a nurse anesthetist who is not an employee of the facility shall, nonetheless, be subject to the bylaws of the facility and may be required by the facility to provide proof of current professional liability insurance coverage. Notwithstanding any other provision of law, a nurse anesthetist shall be responsible for their own professional conduct and may be held liable for those professional acts.SEC. 45.SEC. 48.
Section 2830.6 of the Business and Professions Code is amended to read:2830.6.
Notwithstanding Section 2830, the board shall certify all applicants who can show certification by the National Board of Certification and Recertification for Nurse Anesthetists or a successor national professional organization approved by the board. This certification shall be documented to the board in a manner to be determined by the board. Proof of certification shall be filed with the board within six months from the effective date of this article and the board shall, within one year from the effective date of this article, issue a certificate to applicants who have filed proof of certification within that six-month period.SEC. 46.SEC. 49.
Section 2833 of the Business and Professions Code is amended to read:2833.
(a) Each certificate issued pursuant to this article shall be renewable biennially, and each person holding a certificate under this article shall apply for a renewal of their certificate and pay the biennial renewal fee required by Section 2830.7 every two years on or before the last day of the month following the month in which their birthday occurs, beginning with the second birthday following the date on which the certificate was issued, whereupon the board shall renew the certificate.SEC. 47.SEC. 50.
Section 2836 of the Business and Professions Code is amended to read:2836.
(a) The board shall establish categories of nurse practitioners and standards for nurses to hold themselves out as nurse practitioners in each category. The standards shall take into account the types of advanced levels of nursing practice that are or may be performed and the clinical and didactic education, as outlined in the nurse practitioner curriculum core competencies specified in the National Organization of Nurse Practitioner Faculties’ Nurse Practitioner Role Core Competencies (2022), or a successor approved by the board, experience, or both, needed to practice safely at those levels. In setting the standards, the board shall consult with nurse practitioners, physicians and surgeons with expertise in the nurse practitioner field, and health care organizations using nurse practitioners. Established standards shall apply to persons without regard to the date of meeting the standards. If the board sets standards for use of nurse practitioner titles that include completion of an academically affiliated program, it shall provide equivalent standards for registered nurses who have not completed the program.SEC. 48.SEC. 51.
Section 2838.1 of the Business and Professions Code is amended to read:2838.1.
(a) On and after July 1, 1998, any registered nurse who holds themselves out as a clinical nurse specialist or who desires to hold themselves out as a clinical nurse specialist shall, within the time prescribed by the board and before their next license renewal or the issuance of an initial license, submit their education, experience, and other credentials, and any other information required by the board to determine that the person qualifies to use the title “clinical nurse specialist.”SEC. 49.SEC. 52.
Section 2838.2 of the Business and Professions Code is amended to read:2838.2.
(a) A clinical nurse specialist is a registered nurse with advanced education, who participates in expert clinical practice, education, research, consultation, and clinical leadership as the major components of their role.SEC. 50.SEC. 53.
Section 2915.4 of the Business and Professions Code is amended to read:2915.4.
(a) Effective January 1, 2020, an applicant for licensure as a psychologist shall show, as part of the application, that they have completed a minimum of six hours of coursework or applied experience under supervision in suicide risk assessment and intervention. This requirement shall be met in one of the following ways:SEC. 51.SEC. 54.
Section 2915.5 of the Business and Professions Code is amended to read:2915.5.
(a) Any applicant for licensure as a psychologist as a condition of licensure, a minimum of six contact hours of coursework or applied experience in aging and long-term care, which may include, but need not be limited to, the biological, social, and psychological aspects of aging. This coursework shall include instruction on the assessment and reporting of, as well as treatment related to, elder and dependent adult abuse and neglect.SEC. 55.
Section 4427.8 of the Business and Professions Code is amended to read:4427.8.
(a) This article shall become operative on July 1, 2019.SEC. 52.SEC. 56.
Section 4846 of the Business and Professions Code is amended to read:4846.
(a) In order to obtain a license to practice veterinary medicine in California, an individual shall meet the following requirements:SEC. 53.SEC. 57.
Section 4861 of the Business and Professions Code is amended to read:4861.
(a) One or more wellness evaluation committees is hereby authorized to be established by the board. Each wellness evaluation committee shall be composed of five persons appointed by the board. The board, in making its appointments, shall give consideration to recommendations of state and local associations and shall consider, among others, where appropriate, the appointment of individuals who have recovered from impairment or who have knowledge and expertise in the management of impairment.SEC. 54.SEC. 58.
Section 4875.3 of the Business and Professions Code is amended to read:4875.3.
If the board determines, as a result of its inspection of the premises pursuant to Section 4809.5, or any other place where veterinary medicine, veterinary dentistry, veterinary surgery, or the various branches thereof is practiced, or that is otherwise in the possession of a veterinarian for purpose of that practice, that it is not in compliance with the standards established by the board, the board shall provide a notice of any deficiencies and provide a reasonable time for compliance with those standards prior to commencing any further action pursuant to this article. The board may issue an interim suspension order pursuant to Section 494 in those cases where the violations represent an immediate threat to the public and animal health and safety.SEC. 55.SEC. 59.
Section 4989.14 of the Business and Professions Code is amended to read:4989.14.
(a) The practice of educational psychology is the performance of any of the following professional functions pertaining to academic learning processes or the educational system or both:SEC. 56.SEC. 60.
Section 4990.11 is added to the Business and Professions Code, to read:4990.11.
For purposes of license and registration verification, a person may rely upon the licensing and registration information as it is displayed on the board’s internet website that includes the issuance and expiration dates of any license or registration issued by the board.SEC. 57.SEC. 61.
Section 5017.1 of the Business and Professions Code is amended to read:5017.1.
The board shall post, within 10 days of board approval, the finalized minutes from meetings of the board that are open and public pursuant to Section 5017 on the board’s internet website. The minutes shall remain on the board’s internet website for at least three years. Providing a link on the internet website to the minutes shall satisfy this requirement.SEC. 58.SEC. 62.
Section 5017.5 of the Business and Professions Code is amended to read:5017.5.
(a) The board shall provide a live audio or video broadcast, on its internet website, of each of its board meetings that are open and public.SEC. 59.SEC. 63.
Section 5022 of the Business and Professions Code is amended to read:5022.
The qualifications committee shall make recommendations and forward its report to the board for action on any matter on which it is authorized to act. An applicant for registration as a certified public accountant who is aggrieved by any action taken by the committee with respect to their qualifications may appeal to the board in accordance with rules or regulations prescribed by the board. The board on the appeal may give an oral or written examination as an aid in determining whether the applicant is qualified under the terms of this chapter.SEC. 60.SEC. 64.
Section 5028 of the Business and Professions Code is amended to read:5028.
The board may, in accordance with the intent of this article, make exceptions from continuing education requirements for licensees not engaged in public practice, or for reasons of health, military service, or other good cause. If the licensee returns to the practice of public accounting, they shall meet continuing education requirements as the board may determine.SEC. 61.SEC. 65.
Section 5029 of the Business and Professions Code is repealed.SEC. 62.SEC. 66.
Section 5037 of the Business and Professions Code is amended to read:5037.
(a) All statements, records, schedules, working papers and memoranda made by a licensee or a partner, shareholder, officer, director, or employee of a licensee, incident to, or in the course of, rendering services to a client in the practice of public accountancy, except the reports submitted by the licensee to the client and except for records that are part of the client’s records, shall be and remain the property of the licensee in the absence of an express agreement between the licensee and the client to the contrary. No such statement, record, schedule, working paper, or memoranda shall be sold, transferred, or bequeathed, without the consent of the client or their personal representative or assignee, to anyone other than one or more surviving partners or stockholders or new partners or stockholders of the licensee, or any combined or merged firm or successor in interest to the licensee.SEC. 63.SEC. 67.
Section 5051 of the Business and Professions Code is amended to read:5051.
Except as provided in Sections 5052 and 5053, a person shall be deemed to be engaged in the practice of public accountancy within the meaning and intent of this chapter if they do any of the following:SEC. 64.SEC. 68.
Section 5053 of the Business and Professions Code is amended to read:5053.
Nothing contained in this chapter precludes a person who is not a certified public accountant or public accountant from serving as an employee of, or an assistant to, a certified public accountant or public accountant or partnership or a corporation composed of certified public accountants or public accountants holding a permit to practice pursuant to this chapter if the employee or assistant works under the control and supervision of a certified public accountant, or a public accountant authorized to practice public accountancy pursuant to this chapter and if the employee or assistant does not issue any statement over their name.SEC. 65.SEC. 69.
Section 5057 of the Business and Professions Code is amended to read:5057.
Notwithstanding any other provision of law, an individual holding a valid and current license, certificate, or permit to practice public accountancy from another state shall be exempt from the requirement to obtain a permit to practice public accountancy issued by the board under this chapter or to secure a practice privilege pursuant to Article 5.1 (commencing with Section 5096) if all of the following conditions are satisfied:SEC. 66.SEC. 70.
Section 5058.2 of the Business and Professions Code is amended to read:5058.2.
The holder of an inactive license issued by the board pursuant to Section 462, when lawfully using the title “certified public accountant,” the CPA designation, or any other reference that would suggest that the person is licensed by the board on materials such as correspondence, internet websites, business cards, nameplates, or name plaques, shall place the term “inactive” immediately after that designation.SEC. 67.SEC. 71.
Section 5058.3 of the Business and Professions Code is amended to read:5058.3.
The holder of a retired license issued by the board pursuant to Section 5070.1, when lawfully using the title “certified public accountant,” the CPA designation, or any other reference that would suggest that the person is licensed by the board on materials such as correspondence, internet websites, business cards, nameplates, or name plaques, shall place the term “retired” immediately after that title, designation, or reference.SEC. 68.SEC. 72.
Section 5058.4 of the Business and Professions Code is amended to read:5058.4.
The holder of a permit in a military inactive status issued by the board pursuant to Section 5070.2, when lawfully using the title “certified public accountant,” the CPA designation, or any other reference that would suggest that the person is licensed by the board, on materials such as correspondence, internet websites, business cards, nameplates, or name plaques, shall place the term “military inactive” immediately after that title, designation, or reference.SEC. 69.SEC. 73.
Section 5060 of the Business and Professions Code is amended to read:5060.
(a) No person or firm may practice public accountancy under any name which is false or misleading.SEC. 70.SEC. 74.
Section 5063.3 of the Business and Professions Code is amended to read:5063.3.
(a) No confidential information obtained by a licensee, in their professional capacity, concerning a client or a prospective client shall be disclosed by the licensee without the written permission of the client or prospective client, except the following:SEC. 71.SEC. 75.
Section 5070.7 of the Business and Professions Code is amended to read:5070.7.
(a) A permit that is not renewed within five years following its expiration may not be renewed, restored, or reinstated thereafter, and the certificate of the holder of the permit shall be canceled immediately upon expiration of the five-year period, except as provided in subdivision (e).SEC. 72.SEC. 76.
Section 5076 of the Business and Professions Code is amended to read:5076.
(a) In order to renew its registration in an active status or convert to an active status, a firm, as defined in Section 5035.1, shall have a peer review report of its accounting and auditing practice accepted by a board-recognized peer review program no less frequently than every three years.(m)(1)By January 1, 2015, the board shall provide the Legislature and Governor with a report regarding the peer review requirements of this section that includes, without
limitation:
(A)The number of peer review reports completed to date and the number of reports that were submitted to the board as required in subdivision (e).
(B)The number of enforcement actions that were initiated as a result of an investigation conducted pursuant to subdivision (i).
(C)The number of firms that were recommended to take corrective actions to improve their practice through the mandatory peer review process, and the number of firms that took corrective actions to improve their practice following recommendations resulting from the mandatory peer review process.
(D)The extent to which mandatory peer review of accounting firms enhances consumer protection.
(E)The cost impact on firms undergoing mandatory peer review and the cost impact of mandatory peer review on the firm’s clients.
(F)A recommendation as to whether the mandatory peer review program should continue.
(G)The extent to which mandatory peer review of small firms or sole practitioners that prepare nondisclosure compiled financial statements on another comprehensive basis of accounting enhances consumer protection.
(H)The impact of peer review required by this section on small firms and sole practitioners that prepare nondisclosure compiled financial statements on another comprehensive basis of accounting.
(I)The impact of peer review required by this section on small businesses, nonprofit corporations, and other entities that utilize small firms or sole practitioners for the purposes of nondisclosure compiled financial statements prepared on another comprehensive basis of accounting.
(J)A recommendation as to whether the preparation of nondisclosure compiled financial statements on another comprehensive basis of accounting should continue to be a part of the mandatory peer review program.
(2)A report to the Legislature pursuant to this section shall be submitted in compliance with Section 9795 of the Government Code.