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		<ns0:Id>20250SB__078895CHP</ns0:Id>
		<ns0:VersionNum>95</ns0:VersionNum>
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				<ns0:ActionText>INTRODUCED</ns0:ActionText>
				<ns0:ActionDate>2025-02-21</ns0:ActionDate>
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				<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
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			<ns0:SessionYear>2025</ns0:SessionYear>
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			<ns0:MeasureType>SB</ns0:MeasureType>
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		<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Niello</ns0:AuthorText>
		<ns0:Authors>
			<ns0:Legislator>
				<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
				<ns0:House>SENATE</ns0:House>
				<ns0:Name>Niello</ns0:Name>
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		<ns0:Title> An act to amend Section 22258 of the Business and Professions Code, relating to business. </ns0:Title>
		<ns0:RelatingClause>business</ns0:RelatingClause>
		<ns0:GeneralSubject>
			<ns0:Subject>Tax preparers: exemptions.</ns0:Subject>
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		<ns0:DigestText>
			<html:p>Existing law establishes the California Board of Accountancy, which is within the Department of Consumer Affairs, and requires the board to license and regulate accountants in this state.</html:p>
			<html:p>Existing law, the Tax Preparation Act, provides for the registration and regulation of tax preparers by the California Tax Education Council. The act requires a tax preparer to register with the California Tax Education Council and, among other things, requires a tax preparer to provide specified written disclosures to a client in connection with tax preparation services. Existing law exempts certain persons from these requirements, including, among others, a person with a current and valid license issued by the California Board of Accountancy.</html:p>
			<html:p>This bill would
			 instead exempt an individual with a current and valid license issued by the board, as described above. The bill would additionally exempt an individual who is authorized to practice public accountancy pursuant to specified law and a firm, including the firm’s partners, shareholders, owners, or employees, provided the firm has a current and valid license issued by the board. The bill would apply these changes to tax returns prepared for taxable years beginning on or after January 1,
			 2025.</html:p>
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			<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
			<ns0:Appropriation>NO</ns0:Appropriation>
			<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
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			<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
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				<ns0:Urgency>NO</ns0:Urgency>
				<ns0:TaxLevy>NO</ns0:TaxLevy>
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	<ns0:Bill id="bill">
		<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
		<ns0:BillSection id="id_51986A82-5195-4E68-BFF0-50AB56F88F83">
			<ns0:Num>SECTION 1.</ns0:Num>
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				Section 22258 of the 
				<ns0:DocName>Business and Professions Code</ns0:DocName>
				 is amended to read:
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					<ns0:Num>22258.</ns0:Num>
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							<html:p>
								(a)
								<html:span class="EnSpace"/>
								The following persons are exempt from the requirements of this title, subject to the requirements of subdivision (b):
							</html:p>
							<html:p>
								(1)
								<html:span class="EnSpace"/>
								An individual with a current and valid license issued by the California Board of Accountancy, or authorized to practice public accountancy pursuant to Article 5.1 (commencing with Section 5096) of
						Chapter 1 of Division 3.
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							<html:p>
								(2)
								<html:span class="EnSpace"/>
								A firm, including the firm’s partners, shareholders, owners, or employees, provided the firm has a current and valid license issued by the California Board of Accountancy.
							</html:p>
							<html:p>
								(3)
								<html:span class="EnSpace"/>
								A person who is an active member of the State Bar of California.
							</html:p>
							<html:p>
								(4)
								<html:span class="EnSpace"/>
								Any trust company or trust business as defined in Chapter 1 (commencing with Section 99) of Division 1 of the Financial Code.
							</html:p>
							<html:p>
								(5)
								<html:span class="EnSpace"/>
								A financial institution regulated by the state or federal government, insofar as the activities of the financial institution with respect to tax preparation are subject to federal or state examination or oversight.
							</html:p>
							<html:p>
								(6)
								<html:span class="EnSpace"/>
								A person who is enrolled to practice before the Internal Revenue Service pursuant to Subpart A (commencing with Section 10.1) of Part 10 of Title 31 of the Code of Federal Regulations.
							</html:p>
							<html:p>
								(7)
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								Any employee of any person described in paragraph (1), (2), (3), (4), (5), or (6), while functioning within the scope of that employment, insofar that the employee is supervised by a person exempt under this subdivision who reviews the return, signs it, and is responsible for its content.
							</html:p>
							<html:p>
								(8)
								<html:span class="EnSpace"/>
								Any employee of any corporation, partnership, association, or any entity described in subparagraph (B) of paragraph (1) of subdivision (a) of Section 22251.
							</html:p>
							<html:p>
								(b)
								<html:span class="EnSpace"/>
								(1)
								<html:span class="EnSpace"/>
								Except for employees of entities described in paragraph (4) or (5) of subdivision (a), paragraph (7) of subdivision (a) shall apply only if all tax returns prepared by that employee are signed by a person described in paragraph (1), (2), (3), or (6) of subdivision (a).
							</html:p>
							<html:p>
								(2)
								<html:span class="EnSpace"/>
								Paragraph (8) of subdivision (a) shall apply only if all tax returns prepared by that employee are signed by the person described in paragraph (8) of subdivision (a).
							</html:p>
							<html:p>
								(3)
								<html:span class="EnSpace"/>
								No person described in this
						subdivision as an employee may sign a tax return, unless that employee is otherwise exempt under this section, is registered as a tax preparer with the council, or is an employee of either a trust company or trust business described in paragraph (4) of subdivision (a), or any employee of a financial institution described in paragraph (5) of subdivision (a).
							</html:p>
							<html:p>
								(c)
								<html:span class="EnSpace"/>
								For purposes of this section, preparation of a tax return includes the inputting of tax data into a computer.
							</html:p>
							<html:p>
								(d)
								<html:span class="EnSpace"/>
								The amendments made to this section by the act adding this subdivision shall apply to tax returns prepared for taxable years beginning on or after January 1, 2025.
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