CBA president: governor signed AB 1175; board to start rulemaking, discusses continuing education changes
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Summary
President Tu reported that Assembly Bill 1175 has been signed and that the California Board of Accountancy will begin rulemaking to implement its provisions. The board also continued discussion of modernizing continuing education (including course quality and AI use) and reviewed outreach efforts and alternate practice structure (APS) material.
President Tu, president of the California Board of Accountancy, told the Enforcement Advisory Committee on Oct. 9 that Assembly Bill 1175 has been signed by the governor and that the full board approved proposed regulations and will initiate rulemaking to implement the bill’s provisions.
Tu said the CBA is focusing on proposed changes to licensure and education requirements in AB 1175 and on modernizing continuing education. The board discussed two primary CE topics: establishing criteria to ensure California course providers offer quality continuing education, and how providers can use artificial intelligence in CE course development while safeguarding content accuracy.
Why this matters: AB 1175 changes licensure-related requirements and requires rulemaking for implementation; continuing-education changes could affect renewal obligations for many licensees.
Board actions and outreach Tu reported the board’s earlier action on AB 1175 and described staff outreach efforts: videos, monthly live question-and-answer sessions, podcasts, in-person and virtual events, social-media postings and articles intended to communicate exam and licensure changes to candidates and licensees.
Tu recounted the board’s outreach at California State University, Northridge, where CBA members spoke to students and participated in transcript reviews. He also said the board reviewed a presentation on alternate practice structure (APS) and private equity in CPA firms; the presenter, Mr. Fransello, was noted to have been appointed to a NASBA (National Association of State Boards of Accountancy) task force on private equity and will participate in a NASBA conference panel.
Continuing education and the 80-hour discussion Tu summarized research presented to the full board showing that most other states require 80 hours of continuing education at each renewal (or 40 hours per year), though requirements vary by profession. CBA members directed further research and stakeholder outreach on whether California should retain 80 hours, change frequency of the regulatory-review course, or otherwise modernize CE requirements. Tu emphasized that ethics training should remain a recurring requirement.
Timing and next steps Tu said AB 1175 was presented to the governor on Sept. 9 and that the governor had up to Oct. 9 to act; he then announced, “The governor has signed the bill.” Tu said the full board had approved proposed regulations and the initiation of rulemaking contingent on enactment and that staff would return with proposals at future meetings.
Ending Tu said the CBA will continue stakeholder outreach and policy development and that the board’s next meeting will be held in person in November at the CBA office in Sacramento.
