00;00;00;00 - 00;00;19;20 Unknown Hello again. Welcome to another episode of the accounting for California podcast. My name is David Hemphill, and I'm happy to be joined by Denise Fleming, the president and CEO of the California Society of CPAs. Welcome. Thank you. David. Glad to be here today. All right. Glad you're here. And Mr. Dominic Frenzel, who's the executive officer of the California Board of Accountancy. 00;00;19;20 - 00;00;38;19 Unknown Hello. Hi, David. Thanks for having me. All right. So we have a lot to get you caught up on. First of all, thank you for watching or listening and, taking interest in these changes that are potentially coming. Since we last got together in the spring assembly, Bill 1175 has passed through the Assembly and is now working its way through the Senate. 00;00;38;19 - 00;00;57;14 Unknown Essentially, we'll be doing the same process, which will get heard and voted on by a policy and fiscal committee, and then get sent to the floor for a full vote. Once the Senate passes, the bill will then be sent to the governor. So that could be coming here in the next few months. The first Senate hearing as we're filming this, it'll be coming up, next Monday. 00;00;57;14 - 00;01;24;06 Unknown So we're looking forward to that. Now. Amendments are made to the bills throughout this process. And that was the case for AB 1175. So Dominic, let's start off. Can you briefly touch on the primary amendment regarding the new licensure requirements? Happy to. So, the the biggest amendment or the primary amendment, as you put it, really just made a slight delay to the effective or implementation date for the new licensure requirements. 00;01;24;09 - 00;02;03;23 Unknown The original language in the bill had a July 1st, 2026, implementation date, but that was moved out to, now January 1st, 2027. And, this will really help ensure that, CBA stakeholders and others have, sufficient time to kind of work through the regulatory process, develop the policies that will implement the bill and make it, hopefully a smoother process over the long haul, for implementing, both at the college level, for, stakeholders, for licensees to understand our applicants, to understand and for the board to effectively implement it. 00;02;03;26 - 00;02;23;16 Unknown Okay. But there was no change to when the mobility provisions will kick in. No, no change to the mobility provisions. And, and honestly, no change to really the structure or those, other pieces of the licensure requirements. Okay. So if the bill is signed by the governor this fall, then it will take effect on January 1st, 2026. 00;02;23;16 - 00;02;44;06 Unknown So that's when all that mobility will kick in. So California CPAs are definitely interested in the expanded mobility provisions of the bill and the importance of being able to practice across state lines. So Denise is Cal CPA following the developments from other states when it comes to what they're doing with mobility. And can you update on what you're seeing out there? 00;02;44;06 - 00;03;06;18 Unknown Sure, sure. Yeah, we are following and we're seeing the states moving forward. Now on the governor's desk, I think it's we have New York, we have Pennsylvania, Illinois and North Carolina. So that's in process. And as those are adopted, then they will join, I think Texas, Ohio and Georgia and then other states. There's probably 20 some states that are in the process of moving forward. 00;03;06;18 - 00;03;26;24 Unknown So, everybody's kind of rolling along. And we do watch that, and get the updates on a daily basis. We also have seen the UAE pass and that's been adopted in all of from the state level. Our level, and from also the national level. We are seeing, you know, conceptually, the common tenants across all of it. 00;03;26;24 - 00;03;46;03 Unknown So that's that's a positive as as we move forward, I would say to one thing, just to kind of punctuate is a lot of times people say, well, why is California waiting? Why didn't they pass, you know, last year? And we really have to follow our legislative calendar hours that are out there. So Ohio just had an opening and they went for it last year. 00;03;46;03 - 00;04;03;23 Unknown So they were able to pass first. It just depends right on where everybody's at. So I think that's something that I want everyone to keep in mind and just be, top of mind as, as we move forward because we're really bound by whatever our calendar is. And from a flexibility standpoint, this is is a real win for the profession. 00;04;03;23 - 00;04;21;17 Unknown So we're we're glad to see everyone kind of moving forward. And that's why we're doing these updates so people can know how, you know, the process is happening. The legislative process doesn't happen with the snap of a finger, so it's moving in the right direction. How would you say your members are feeling about how open mobility is gaining momentum around the country? 00;04;21;19 - 00;04;42;21 Unknown I'm, you know, comfortable I there's been quite a bit of transparency as we've been moving forward. There's been a lot of due diligence. From your standpoint, two of outreach that you've done through surveys and talking to our members? We've done it quite a bit. We had, the California Pipeline Advisory Group, that also keyed into a lot of the changes that were happening. 00;04;42;27 - 00;05;16;08 Unknown So they're they're positive. I mean, they're seeing the movement throughout the state. That's always one of their questions. Are we all aligned? And so that's happening. That gives them quite a bit of of comfort. And we're seeing no red flags at this point in time. Excellent. Well that's all encouraging news. Yeah. So at the May CBA meeting a couple of months ago, the board had several discussions to provide policy direction about some of the finer details, if you will, that aren't included specifically within AB 1175, but will help inform the regulations necessary to implement the bill. 00;05;16;10 - 00;05;40;02 Unknown So let's talk about some of these concepts, starting with the idea of CBA recognized degrees. So Dominic, if the CBA recognizes a degree, what exactly does that mean? I guess simply it just means that the CBA has determined that that degree from that institution meets the minimum educational requirements to sit for the exam and eventually get licensed. 00;05;40;04 - 00;06;10;11 Unknown At this point, the board is looking at potentially those, minimum education requirements being the 24 semester units of accounting, 24 semester units of business related subjects, and three units of ethics. So that that's what in essence, it's, indicating that it's met. Students had really asked for the board to provide ways so that they know that they're meeting the requirements, because right now it's a it's more of a challenge. 00;06;10;11 - 00;06;33;09 Unknown You're having to do a class by class, by class by class, and that'll still be an option. And that's still something that our, our staff and students can do to qualify for the exam. But if we could find, you know, I think the term has been used to express way or the express lane where you can lean in to the school's degree, the fact that it's been deemed to have met those educational requirements, it's a benefit to the school. 00;06;33;09 - 00;06;57;22 Unknown It's a benefit to the licensee or the applicant, and it's definitely a benefit to the board as well, because we know exactly that they've met that requirement. And it's not a guessing game. When you get a letter from the board, on your education environments. Right. It takes a little of the uncertainty out of it. Does the CBA anticipate a large number of California universities taking these steps to get their degrees recognized, and you mentioned the benefit. 00;06;57;22 - 00;07;25;16 Unknown What would be the benefit to a school offering a CBA recognized degree? Well, gosh, we really hope so. We hope there's at least a significant number of California universities that will, take the time to offer degrees that meet the educational requirements and seek that recognition. And again, from both the perspective the students and for the, the board and those, and the university itself, it just the finding the value and knowing that they will not need to take additional courses. 00;07;25;16 - 00;07;47;14 Unknown There's not needing to meet some additional educational requirements or that there might be a question of whether or not they've at the 24 or the three, or this class or that class is going to qualify. It takes some of that guessing game out of it, and, you know, provides that level of assurance that I think is important. When you step into you're kind of plotting your, course. 00;07;47;17 - 00;08;17;07 Unknown So, yeah. So I know Cal CPA has collaborative relationships with academia throughout California, and even you have your own accounting education committee that I know we've consulted several times. Yes, during this process. So what has their reaction been to this approach of having these CBA recognized degrees? Positive? I mean, honestly, when they hear Michelle is going to be there, the CBA or Dominic, it's going to present and and have conversations are very excited. 00;08;17;10 - 00;08;40;00 Unknown Because you've all done a really great job of integrating their feedback and incorporating that into how you're moving forward. So we appreciate that. But they're very excited about it because you can imagine as as you said, Dominic, when you're talking to students and they're confused or you're even confused, I mean, I think there's confusion at all levels, right, at the academic level with the professors and the faculty. 00;08;40;00 - 00;09;16;11 Unknown And then also some of the recruiters and then the students. The more clarity we can have, the more, concise it can be on the steps forward. In the past, there's just tremendous opportunity, I think, for us to encourage students to go into accounting and to, to move forward on a pathway. So they're very excited about the, expressway and being able to have that degree or that certificate and knowing what that is and especially knowing what it is when you look at 22 years of experience or one year of experience or, you know, one year plus two months, the more we can have clarity, the better it will be. 00;09;16;11 - 00;09;35;11 Unknown So, the more we can have the conversations too. It just helps in, in moving all of us forward. A lot of positivity. All right. That is great news. It is great news. So we're excited. We like when everyone's on board. Yes. So Dominic we've been talking mostly about bachelor's degrees being recognized. But can a masters also be CBA recognized. 00;09;35;11 - 00;10;00;16 Unknown Absolutely. Yes. Okay. So another angle in May, are a couple options that aspiring CPAs have to decrease. The proposed two year general accounting experience requirement for licensure. So some of the flexibility that's being worked into the bill. So Dominic what is the positive impact for those who choose to earn an advanced degree. Yeah. So the discussions in May really highlighted the value. 00;10;00;16 - 00;10;29;03 Unknown The CBA continues to place on advanced degrees and their commitment to ensuring they're kind of that. The board is offering multiple roads to becoming a CPA and obtaining licensure. And so applicants who earn those advanced degrees, in accounting and in accounting related subject, will have their experience requirement substituted or reduced by one year. And ultimately, what counts as an accounting related advanced degree is something the board is continuing to work on. 00;10;29;03 - 00;10;50;28 Unknown They had some initial discussions in May and I know at the meeting, later this month, they'll kind of take that next step to refine that, those, those types of advanced degrees. Okay. That's good. So that to your requirement comes down to a one year requirement with the advanced degree. Kel, CPA also has a lot of great student oriented groups who are just talking about it. 00;10;50;28 - 00;11;15;14 Unknown Before, we started filming and universities throughout the state. I'm sure these new requirements are a hot topic for all these aspiring CPAs. So what's the feedback you've heard from the students? Regarding the proposed change to a two year general accounting experience? They're excited as well, and a lot of outreach. So I've had students and I should tell them, if you want to reach out, reach out on LinkedIn, because I've had a number of people reach out on LinkedIn. 00;11;15;16 - 00;11;37;03 Unknown They've talked to Jason, they've talked to myself. I know they talk to you. They're just really excited about the flexibility because the different pathways. And I really appreciate the approach that you all have taken of having the foundational right, the two years experience and the bachelor's or bachelor's degree. And then you can shift and move depending on where you're at. 00;11;37;03 - 00;11;57;18 Unknown So second career students, they have flexibility. If you come in and you have a different background, you have flexibility. You can come in. And I hear from a lot of students, I'm working. I'm a primary, you know, breadwinner for the family. I can't go to school and have another 30 unit. So how can I do this in a different way? 00;11;57;21 - 00;12;21;05 Unknown So we're allowing for that. And with the new exam, looking at data analytics and looking at reporting, we're also allowing for students to say, well, I may want to go about this in a different way and get a certificate that enhances that, and I can do that and shave off some of the experience. So just the flexibility that we're allowing and still having the public protection piece in mind always is, is a real positive. 00;12;21;05 - 00;12;40;25 Unknown And I hear from the students, wow. I mean, this is this is great. It allows for me to do what I need to do for my life experience, and then to plug in in a way that makes sense for me. So, just like I said, again, so much positivity. So after so many years of uncertainty, it's nice to see that we're moving in the direction and there's more clarity. 00;12;41;00 - 00;13;06;09 Unknown So, it's it's a good move forward. I'm liking your answer so far. I eat a lot of excitement, a lot of excitement that makes it work. And that's kind of what we've said a lot. There's lots of different roads to come from to reach the same goal of of CPA. Well, let's kind of talk about what you mentioned, kind of the certificates for maybe those already working or perhaps in a different field that want to come into, the accounting profession. 00;13;06;09 - 00;13;35;22 Unknown So a lot of times these individuals will go to community colleges or extended studies programs to get the additional education they need. So what what has been on the table now as far as certificates, and what's the benefit for those who take that road? Yeah. So that's something the board, kind of took up again in May. And looking at this idea of maybe a, CBA recognized certificate programs or certificate, that could meet, the educational requirements. 00;13;35;24 - 00;14;05;16 Unknown And students will, again, a lot like the expressway with the recognition that that that certificate satisfies the educational requirements to sit for exam and obtain licensure. And again, emphasizing kind of a post-baccalaureate educational component, it's not the advanced degree, but recognizing that it's education they're earning beyond their baccalaureate degree, reducing the experience requirement or substituting some amount of time to the experience requirement in the board, kind of at this point is landed on a six month reduction. 00;14;05;16 - 00;14;34;29 Unknown So instead of it being, 24 months or two years, it's now it would be 18 months if you have, completed, an approved certificate program. And again, it's just as we've talked about you'd mentioned, David, you just mentioned. Well, it's just another it provides another road. It provides another path. For those individuals to seek licensure and be able to take where they're at in their life and say what works best for me, and what option is best for me, my family, my circumstance is. 00;14;35;00 - 00;15;06;13 Unknown And so I think the board is really trying to make an effort to provide as many options as possible. But again, with that lens of consumer protection, in mind. Right. So same angle, does it need to be CBA recognize these certificates are training programs to substitute for the six months? It will be. Yeah. Yeah okay. And you know, when I think about it too, from a diversity standpoint, we're just increasing the diversity within the profession to have many different lenses be represented. 00;15;06;13 - 00;15;23;19 Unknown And that's a real positive, especially when you think about the different business lines that are out there and the I and all the components that are coming down the line. So, I think it's going to really enhance the overall profession and those that are in the profession. Yeah. And that was essentially one of the goals of the bill. 00;15;23;19 - 00;15;47;16 Unknown Right. Is this increased flexibility. And I'm assuming like you've said, your your members are appreciating that. Absolutely. Yeah. Very good. So if everything does continue, the way we're anticipating, there will now be a two year period, essentially all of 2027 and 2028 where applicants can choose to use either the current licensure requirements or the new ones with Assembly Bill 1175. 00;15;47;18 - 00;16;17;13 Unknown So, Dominic, for those graduating soon who may be planning on applying to become a CPA during those two transition years, is there anywhere they can go to find out more about AB 1175 to help them with this decision? Absolutely. So the again, I'll always point people to the board's website. We actually have, a whole web page that we continue to update and refine as more information becomes available on 1175 or decisions are being made by the board or anticipated decisions are being considered. 00;16;17;16 - 00;16;38;05 Unknown But I also recommend, as you do often follow us on the LinkedIn. Follow us on, ECS and Facebook and our new Instagram account for, opportunities to kind of get plugged in on what's going on with 1175. Yeah. And Denise, what about Cal, CPA? Are you offering resources to your members who want to know more? We are. 00;16;38;05 - 00;16;57;24 Unknown And I will just plug yours again, because I also listen to you, David, on your videos and you have a lot of great information out there. So I would encourage anyone to also, go there. We have also a page that mirrors your page as well. So if you're on our site that's on the advocacy page of the pipeline, we also are talking about it on our town halls. 00;16;57;24 - 00;17;18;15 Unknown Jason talks about on Capital Beats. We have insights tours that we go to firms. I know you're all going to schools as well, so we're trying to get it out on every channel. I think we can. And in every mobile modality that we can. So, wherever you are, we're trying to be there too. So, kudos to you too, for doing a great job and getting the message out there. 00;17;18;16 - 00;17;36;05 Unknown Yeah, doing our best. Now coming up on Friday the 11th. We're also doing a CBA live that we're going to be here just answering questions. And we've been doing this monthly for the last few months. Just kind of another thing. We're doing, where we've had we've had students, we've had faculty, kind of log in and just ask us questions. 00;17;36;05 - 00;17;57;10 Unknown So coming up this Friday the 11th, feel free. If your licensee questions about mobility, we'll have, you know, even renewals, whatever you want doesn't have to be about AB 1175. So we always want to be here as a resource for those of you. So, that'll be at noon on Friday. Well, any parting thoughts? I think we've covered pretty well what, where we are at this point. 00;17;57;10 - 00;18;14;21 Unknown And like you said, keep following us on social media. We'll follow the process through the Senate. And, you know, knock on wood. Governor's desk eventually. No. Nope. I think you hit everything right there. All right. No, it's, exciting. I think we can end with that. It's an exciting time. And we're we're grateful for all of you for listening and engaging. 00;18;14;23 - 00;18;23;29 Unknown Yep. We appreciate that. Hope you're having a wonderful summer. And thank you once again for listening and or watching the accounting for California podcast. Until next time. Bye bye bye.