This month’s update includes information on the repeal of auditor rotation/restrictions, information on Arizona’s universal recognition of occupational licenses, our Operation Conformity updates, an Accountancy Board update and a PAC update.
Auditor Rotation/Restrictions Repeal
Governor Ducey signed SB 1256, repealing the mandatory auditor rotation/restriction of auditor services for school districts. Special thanks to Senate Majority Leader Gray for sponsoring this bill and to CPAs Corey Arvizu, Al Augenstein and Mark Landy for lending their technical expertise.
- In April, these three reviewed an additional document prepared by DeMenna Public Affairs to further educate legislators about our concerns related to mandatory auditor rotation.
- Corey and Mark attended a lengthy House Education Committee hearing on the bill and Corey answered questions from lawmakers.
- Mark separately met with a member of the House Education Committee to further assist him in understanding the data that shows concerns with auditor rotation.
Thanks also to several members who contacted their lawmakers, without much notice, to encourage a vote of aye. Passing this bill was a collaborative effort that took tremendous resource and expertise. Many thanks to all involved.
Universal Recognition of Occupational Licenses
Governor Ducey made national headlines when he signed HB 2569 (occupational licensing; reciprocity). The Society, DeMenna Public Affairs, Accountancy Board members, Board staff and various legal experts have spent hours attempting to understand the impact of this bill on the CPA profession. While we don’t believe it impacts existing Arizona CPAs, we are seeking to understand how it might impact CPAs from other states who would like to become an Arizona CPA. Nationally, the CPA profession has worked diligently to reduce regulations and allow ease in certification when one is certified in another state. We will keep you posted as we learn more.
Operation Conformity Updates
The ASCPA delivered another letter to 90 lawmakers, highlighting Tax Day and urging the passage of full federal income tax conformity for 2018. Tax Day has come and gone without guidance for taxpayers, and we understand conformity will continue to be a topic of legislative conversation during budget negotiations. The latest status of conformity will be shared on the Connect Members site, where we have posted 27 Operation Conformity updates. Be sure to check this board for the most up-to-date information.
Accountancy Board Update
At the March Arizona State Board of Accountancy meeting, Paul Kern, the Society’s chief operating officer & CFO, responded to the call for the public, sharing with the Board the Society’s extensive engagement in legislation that might impact the Board. He outlined how the ASCPA and its lobbyists continue to work closely with Monica Petersen, Board executive director, on legislation in order to understand the impact HB 2569 and several other bills may have on the Board, CPAs and the profession.
Once the Legislature adjourns, legislators will begin their fundraising campaigns and the Society’s PAC will receive various requests for contributions. We appreciate our members’ assistance and encourage you to invest in the profession with a contribution to our PAC. As in previous years, if you contribute to the PAC before this year’s Annual Meeting & Awards Luncheon, you will receive a special PAC Contributor flag on your name badge!