Individual State Agency Fiscal Note — Bill 1648 HB, Board of Accountancy

Summary

An Individual State Agency Fiscal Note for Bill Number 1648 HB, titled Replacing an inactive certificate status with an inactive license designation, from Agency 165-Board of Accountancy. The agency preparation date is 01/10/2022. Part I checks No Fiscal Impact and Requires new rule making. The narrative states that the bill would add a new licensure type called "CPA-inactive" and eliminate the "certificate" licensure type, effective July 1, 2024, and that the potential impact to cash receipts is indeterminate because applying for the new license would be optional. It also states that the agency would need to update 4-30 WAC to reflect the new terminology.

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“Individual State Agency Fiscal Note — Bill 1648 HB, Board of Accountancy.” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2022-02-17-a29814-d242776-1648-fn-final-01-10-22-e5bb4a12de/, SHA-256 6dcb0f3fdfb85d4dcce490120cdda6da563639a37c8fe49479267543ce096ac3.

Full text

Individual State Agency Fiscal Note

Bill Number: 1648 HB Title: Replacing an inactive certificate status with an Agency: 165-Board of Accountancy
inactive license designation.

Part I: Estimates
X No Fiscal Impact

Estimated Cash Receipts to:

NONE

Estimated Operating Expenditures from:
NONE

Estimated Capital Budget Impact:

NONE

The cash receipts and expenditure estimates on this page represent the most likely fiscal impact . Factors impacting the precision of these estimates ,
and alternate ranges (if appropriate ), are explained in Part II.

Check applicable boxes and follow corresponding instructions:
If fiscal impact is greater than $50 ,000 per fiscal year in the current biennium or in subsequent biennia , complete entire fiscal note
form Parts I-V.
If fiscal impact is less than $50,000 per fiscal year in the current biennium or in subsequent biennia , complete this page only (Part I).

Capital budget impact, complete Part IV.

X Requires new rule making, complete Part V.

Legislative Contact: Michelle Rusk Phone: 360-786-7153 Date: 01/06/2022
Agency Preparation: Paul Bitar Phone: 360-407-8129 Date: 01/10/2022
Agency Approval: Paul Bitar Phone: 360-407-8129 Date: 01/10/2022
OFM Review: Cheri Keller Phone: (360) 584-2207 Date: 01/10/2022

Form FN (Rev 1/00) 170,880.00 Request # 165-1648HB-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 1648 HB
Part II: Narrative Explanation
II. A - Brief Description Of What The Measure Does That Has Fiscal Impact
Briefly describe by section number , the significant provisions of the bill , and any related workload or policy assumptions , that have revenue or
expenditure impact on the responding agency .

This bill would add a new type of licensure called “CPA-inactive.” Additionally, the bill would eliminate the “certificate”
licensure type, effective July 1, 2024.

Section 2(25) would add a definition for “substantial equivalency,” which relates to evaluating the education, examination,
and experience requirements of other jurisdictions for purposes of licensure in the state of Washington.

These changes would reduce confusion of title and ensure that Washington’s statutes governing CPAs align with other
states and the National State Boards of Accountancy, and also help keep individual Washington CPA mobility from state
to state.
II. B - Cash receipts Impact
Briefly describe and quantify the cash receipts impact of the legislation on the responding agency , identifying the cash receipts provisions by section number
and when appropriate the detail of the revenue sources . Briefly describe the factual basis of the assumptions and the method by which the cash receipts
impact is derived. Explain how workload assumptions translate into estimates . Distinguish between one time and ongoing functions .

“CPA-inactive” status would be a new licensure type that would apply to individuals whose licenses are in an inactive
status. These individuals would be allowed to renew their inactive licenses every three years without becoming an active
licensee. Due to the fact that applying for the new CPA-inactive license would be optional, it is not possible to gauge the
level of demand from those who would qualify. Accordingly, the potential impact to cash receipts is indeterminate.

ACB does not anticipate overall agency revenue to decline as a result of this bill.
II. C - Expenditures
Briefly describe the agency expenditures necessary to implement this legislation (or savings resulting from this legislation ), identifying by section number the
provisions of the legislation that result in the expenditures (or savings ). Briefly describe the factual basis of the assumptions and the method by which the
expenditure impact is derived . Explain how workload assumptions translate into cost estimates . Distinguish between one time and ongoing functions .

ACB would need to update its WACs to reflect the new licensure type and terminology in this bill, but the impact to
agency staff would be minimal and is not expected to result in any costs.

Part III: Expenditure Detail
III. A - Operating Budget Expenditures
NONE
III. B - Expenditures by Object Or Purpose
NONE

III. C - Operating FTE Detail: List FTEs by classification and corresponding annual compensation . Totals need to agree with total FTEs in
Part I and Part IIIA
NONE

III. D - Expenditures By Program (optional)
NONE

Replacing an inactive certificate status with an inactive license designation . 165-Board of Accountancy
Form FN (Rev 1/00) 170,880.00 Request # 165-1648HB-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 1648 HB
Part IV: Capital Budget Impact
IV. A - Capital Budget Expenditures
NONE

IV. B - Expenditures by Object Or Purpose
NONE

IV. C - Capital Budget Breakout
Identify acquisition and construction costs not reflected elsewhere on the fiscal note and describe potential financing methods
NONE

IV. D - Capital FTE Detail: List FTEs by classification and corresponding annual compensation . Totals need to agree with total FTEs in
Part IVB

NONE

Part V: New Rule Making Required
Identify provisions of the measure that require the agency to adopt new administrative rules or repeal/revise existing rules .

ACB would need to update 4-30 WAC to reflect the new terminology included in this bill.

Replacing an inactive certificate status with an inactive license designation . 165-Board of Accountancy
Form FN (Rev 1/00) 170,880.00 Request # 165-1648HB-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 1648 HB
Ten-Year Analysis
Bill Number Title Agency
1648 HB Replacing an inactive certificate status with an inactive license 165 Board of Accountancy
designation.

This ten-year analysis is limited to agency estimated cash receipts associated with the proposed tax or fee increases. The Office of Financial Management
ten-year projection can be found at http://www.ofm.wa.gov/tax/default.asp .

Estimates
No Cash Receipts Partially Indeterminate Cash Receipts X Indeterminate Cash Receipts

Estimated Cash Receipts

Name of Tax or Fee Acct
Code

Total

Biennial Totals

Narrative Explanation (Required for Indeterminate Cash Receipts)
Eligible individuals would not be required to obtain licensure under the new CPA-inactive status, so it is not possible to estimate future impacts to cash receipts.

Agency Preparation: Paul Bitar Phone: 360-407-8129 Date: 1/10/2022 2:41:53 pm
Agency Approval: Paul Bitar Phone: 360-407-8129 Date: 1/10/2022 2:41:53 pm
OFM Review: Phone: Date:

FNS066 Ten-Year Analysis 1

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