The California Practice Privilege provisions became effective January 1, 2006.

Sections 5096 through 5096.15 of the California Business and Professions Code (Accountancy Act) and Sections 26 through 35.1 of the California Code of Regulations (CBA Regulations) are available on the California Board of Accountancy (CBA) website at www.cba.ca.gov or from the Practice Privilege Unit at pracprivinfo@cba.ca.gov or (916) 561-1704.

The California Practice Privilege Notification Form is available on the CBA's website at www.cba.ca.gov on our Forms Page or from the Practice Privilege Unit at pracprivinfo@cba.ca.gov or (916) 561-1704.

You have the option of submitting the Notification Form on line or by downloading the form from the website and submitting it by mail. A California Practice Privilege expires one year from the submission date of the Notification Form. The submission date for a form sent through the mail will be the postmark date. The submission date will be the actual date of transmission for forms that are signed electronically and submitted on line.

The fee required is $50 for submission of the California Practice Privilege Notification Form without authorization to sign attest reports and $100 for submission of the California Practice Privilege Notification Form with authorization to sign attest reports. The $50/$100 fee must be received by the CBA within 30 days of the Notification Form submission date.

To be eligible for a California Practice Privilege:

1. Your principal place of business cannot be located in California.
2. You must hold a valid, current license, certificate, or permit to practice public accountancy from another state and meet one of the following requirements:
   • Possess a valid and active license, certificate, or permit from a state deemed by the CBA as substantially equivalent and the requirements under which the license, certificate, or permit was issued must be deemed by the CBA to be substantially equivalent to the requirements under Section 5093 of the Accountancy Act; or
   • Possess individual education, examination, and experience qualifications that have been determined by the CBA to be substantially equivalent to the qualifications under Section 5093 of the Accountancy Act. Per Section 27(b) of the California Accountancy Regulations, the CBA will accept individual qualification evaluations of substantial equivalency completed by the National Association of State Boards of Accountancy's (NASBA) CredentialNet. Information regarding CredentialNet can be found on NASBA's website at www.nasba.org; or
   • Have practiced public accountancy as a CPA under a current, valid license issued by any state for four of the last 10 years.
3. If you have any of the disqualifying conditions identified on the California Practice Privilege Notification Form, you may not practice public accountancy in California until you receive CBA approval.

You may qualify for California Practice Privilege by meeting either of the following requirements:

1. Have practiced public accountancy as a CPA under a current, valid license issued by any state for four of the last 10 years, or
2. Submit documents reflecting successful passage of the Uniform CPA Exam, college transcripts and documents reflecting completion of experience to the National Association of State Boards of Accountancy's (NASBA) CredentialNet. CredentialNet will evaluate your licensure information and determine equivalency. If deemed substantially equivalent, a file number will be given to you to use for submission of the California Practice Privilege Notification Form. Information regarding CredentialNet can be found on NASBA's website at www.nasba.org.

No. To have practice rights while the CBA is processing your California licensure application, you must submit the California Practice Privilege Notification Form as well as the applicable fee. The CBA must receive the fee within 30 days of your Notification Form submission. Your California Practice Privilege will be terminated at the time your California CPA license is issued by the CBA.

The statute and regulations pertaining to a California Practice Privilege do not identify a limitation to the number of times you can submit the Notification Form for a practice privilege.

No. Pursuant to Section 5096(d)(3) of the Accountancy Act, a California Practice Privilege holder cannot open a California office and provide public accountancy services from that office.

You are not required to submit documentation with the California Practice Privilege Notification Form unless you identify a disqualifying condition. If you identify a disqualifying condition, you must provide additional information as directed on Attachment 1 of the Notification Form, and you may not practice public accountancy in California until you receive notice from the CBA that the privilege has been approved. The Notification Form must be completed in its entirety.

However, the CBA has the authority to request documentation from you to verify the information you provide on the Notification Form. You are required to reply to a CBA request in a timely manner under Section 5096(e)(5) of the Accountancy Act, which may extend beyond the expiration of your practice privilege.

Yes. You can allow your California CPA license to lapse and practice under a California Practice Privilege as long as you have a valid, current CPA license in another state and meet all requirements to obtain a California Practice Privilege

You should carefully consider the consequences of allowing your California CPA license to be cancelled. Please review the information in the CPA Licensee Handbook located on the CBA's website at www.cba.ca.gov or contact the Licensing Unit at licenseinfo@cba.ca.gov or (916) 561-1701.

The requirements to practice public accountancy vary among states. It is your responsibility to understand and comply with the laws and requirements of any jurisdiction in which you practice. It is suggested that you contact the relevant state board(s) to determine what is required. Unauthorized practice in another state can be cause for discipline against your California license.

Your California Practice Privilege will expire one year from the submission date of your Notification Form. The submission date for a Notification Form sent through the mail will be the postmark date. The submission date is the actual date of transmission for Notification Forms submitted online.

If you wish to continue practicing public accountancy in California subsequent to the expiration date, you must submit a new Notification Form. Submission of a new Notification Form during the term of an existing California Practice Privilege will automatically terminate the current California Practice Privilege, and a new California Practice Privilege with a one-year term will commence.

It may affect your California Practice Privilege if your application for CPA licensure is not granted. A review of the California Practice Privilege Notification Form will be performed, and a determination of whether you still qualify for a California Practice Privilege will be made on a case-by-case basis.

If I report a disqualifying condition on the Notification Form, when will my California Practice Privilege commence and when will it expire?

What happens if I acquire any of the disqualifying conditions listed in Section 32(c) of the CBA Regulations during the term of my California Practice Privilege?

What experience must I fulfill before I sign an attest report under California Practice Privilege?

What documentation must I provide to be able to sign an attest report in California under the practice privilege?

I am a Utah CPA who prepares state income tax returns for my Utah resident clients. One of my Utah clients recently moved to California and requested that I continue to prepare his income tax return. Do I need a California Practice Privilege in order to prepare his individual income tax return now that it needs to be filed with the California Franchise Tax Board?

Is there a limit to the number of tax returns that can be prepared under the exception referenced in Section 5054 of the California Accountancy Act?

I am an out-of-state CPA who performs peer reviews for California accountancy firms. Would I be required to obtain a California Practice Privilege?

When am I required to notify the CBA that I'm practicing public accountancy in California under the practice privilege?

I work for a CPA firm that is licensed in the State of Maryland but not licensed in California. I will be practicing public accountancy in California under a current and valid California Practice Privilege. Since I will be practicing on behalf of my firm, does my firm need to meet any registration requirements with the CBA?

Because CBA staff cannot answer questions posing specific scenarios to determine if registration is required, is there any other way in which my scenario might be considered?