AB 3143: Tax preparers.

Existing law regulates tax preparers and states that it is the intent of the provisions governing the regulation of tax preparers to enable consumers to easily identify credible tax preparers who are bonded and registered, to ensure tax preparers receive adequate education and treat confidential information appropriately, to prohibit tax preparers from making fraudulent, untrue, or misleading representations, and to provide for the California Tax Education Council (council) to register tax preparers and ensure that they meet all necessary requirements. Existing law, for the purposes of these provisions, defines client to mean an individual for whom a tax preparer performs or agrees to perform tax preparation services, and defines the council as a single nonprofit organization exempt from taxation and made up of representatives from specified entities. Existing law requires the council to issue a registration to any applicant who provides satisfactory evidence that he or she meets specified requirements and who complies with the rules established by the council. Existing law requires a tax preparer to provide to the customer in writing specified information prior to rendering any tax preparation services. Except as specified, a violation of these provisions is a crime. Existing law repeals these provisions on January 1, 2019.

The Bagley-Keene Open Meeting Act requires, with specified exceptions, that all meetings of a state body be open and public and all persons be permitted to attend.

This bill would name these provisions the Tax Preparation Act, and would require a tax preparer, on and after July 1, 2019, to report a paid claim against its surety bond to the council, which would be required to post a notice of the claim on its Internet Web site. The bill would extend the definition of client to the term customer. The bill would establish public protection as the councils highest priority in exercising its registration and disciplinary authority and other functions. The bill would make the meetings of the councils board of directors subject to the Bagley-Keene Open Meeting Act. The bill would require the council to establish and maintain on its Internet Web site a searchable public registry of registrants with specified information about each registrant. The bill would require a tax preparer to include the address of the councils Internet Web site in the information the tax preparer is required to provide to a customer before rendering services. The bill would direct the council to require an applicant, beginning July 1, 2020, to submit fingerprint images for submission to the Department of Justice, and would require the Department of Justice to compile and disseminate a fitness determination regarding the applicant based on the applicants criminal offender record information, as prescribed. The bill would require the Department of Justice and the council to charge a fee sufficient to cover the costs of processing the request for state- and federal-level criminal offender record information. The bill would include among the list of persons exempt from the act an employee supervised by a person who is exempt from the act, subject to specified conditions. The bill would extend the operation of the acts provisions to January 1, 2023. By extending the operation of these provisions, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.