CPC backs CE provider safeguards including AI protections, tasks work group to study CE hours; board moves to begin rulemaking tied to AB 1175

The California Board of Accountancy’s Committee on Professional Conduct (CPC) recommended a set of policy directions to modernize continuing education (CE) provider rules, with a focus on quality controls and safeguards when providers use artificial intelligence, the board heard on Sept. 19.

CPC’s recommendations include improved transparency of learning objectives, safeguards against potential negative impacts of AI on course content, a technology-failure policy requirement, disclosures or resolution of conflicts of interest, participant engagement elements at stated intervals, clearer language that licensee self-certification of attendance is not sufficient, provider retention of documentation showing how credit hours were determined, issuance of completion certificates within 60 days, allowance of in-course testing in addition to end-of-course tests, and a requirement that synchronous CE be led by a human instructor.

The CPC discussed but did not recommend mandating video-on for synchronous participants; it also declined to change the 60-day certificate timeframe to remain consistent with NASBA standards. The CPC recommended the board approve inclusion of these policy directions in a future regulatory package.

Separately, CPC members debated whether the total number of CE hours required for active license renewal should be reduced. The committee directed the existing CE work group — rather than forming a new ad hoc committee — to continue research and to report back with a proposed framework that explains why CE is needed, how competency would be defined, and suggested topic areas. Board members stressed preserving ethics and regulatory-review requirements and said proposals should be informed by stakeholder outreach to licensees, providers and other state boards.

CPC also discussed alternative practice structures (APS) and the rise of private equity investment in CPA firms. Staff highlighted regulatory concerns including independence and objectivity risks, governance and transparency issues, and cross-jurisdictional oversight complications. The board noted Executive Officer Franzella’s appointment to a NASBA private-equity task force and asked staff to compile topics for national discussions and identify subject-matter presenters for a future CBA briefing.

On a separate but related agenda item, staff presented a regulatory package to implement AB 1175. The board approved the staff’s motion to initiate rulemaking on the proposed regulatory text, with a contingency clause that the package would proceed only if AB 1175 is enacted. A roll-call vote was recorded as unanimous in favor of initiating the rulemaking.