SENATE BILL REPORT

SB 5434

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As of February 9, 2009

Title: An act relating to prohibited practices in accountancy.

Brief Description: Regarding prohibited practices in accountancy.

Sponsors: Senators Marr, Holmquist, Kohl-Welles and Shin; by request of State Board of Accountancy.

Brief History:

Committee Activity: Labor, Commerce & Consumer Protection: 2/03/09.

SENATE COMMITTEE ON LABOR, COMMERCE & CONSUMER PROTECTION

Staff: Alison Mendiola (786-7483)

Background: The Public Accountancy Act governs the practice of accounting in the state. An accounting firm must be licensed to use the title CPA or perform attest or compilation services. It is a prohibited practice for a firm with an office in the state to practice public accounting without a license. "Practice of public accounting" includes consulting services and preparation of tax returns by a licensee.

Summary of Bill: An accounting firm with an office in this state offering to perform attest or compilation services may not use the title CPA without a license.

EFFECT OF CHANGES MADE BY LABOR, COMMERCE & CONSUMER PROTECTION COMMITTEE (Proposed First Substitute): Clarifies that

Appropriation: None.

Fiscal Note: Available.

Committee/Commission/Task Force Created: None.

Effective Date: Ninety days after adjournment of session in which bill is passed.