Cal. Code Regs. Tit. 16, § 99 - Substantial Relationship Criteria

(a) For the purposes of denial, suspension, or revocation of a certificate or permit pursuant to Division 1.5 (commencing with Section 475) of the Business and Professions Code, a crime, professional misconduct, or act shall be considered to be substantially related to the qualifications, functions or duties of a certified public accountant or public accountant if to a substantial degree it evidences present or potential unfitness of a certified public accountant or public accountant to perform the functions authorized by his or her certificate or permit in a manner consistent with the public health, safety, or welfare.

(b) In making the substantial relationship determination required under subdivision (a) for a crime, the board shall consider the following criteria:

(1) The nature and gravity of the offense;

(2) The number of years elapsed since the date of the offense; and

(3) The nature and duties of the accounting profession.

(c) For purposes of subdivision (a), a substantially related crime, professional misconduct, or act shall include, but are not limited to, the following:

(1) A crime, professional misconduct, or act that involves dishonesty, fraud, or breach of fiduciary responsibility of any kind;

(2) Fraud or deceit in obtaining a certified public accountant's certificate or public accountant's permit under Chapter 1, Division Ill of the Business and Professions Code;

(3) Gross negligence in the practice of public accountancy or in the performance of bookkeeping operation described in Section 5052 of the Business and Professions Code;

(4) A crime or act of professional misconduct that reflects a lack of sound professional or personal judgment relevant to the practice of public accountancy, regardless of whether financial harm occurred to a consumer.

(5) Violation of any of the provisions of Chapter 1, Division Ill of the Business and Professions Code or willful violation of any rule or regulation of the board.

Notes

Cal. Code Regs. Tit. 16, § 99

1. New section filed 2-14-75; effective thirtieth day thereafter (Register 75, No. 7).
2. Amendment filed 4-12-83; effective thirtieth day thereafter (Register 83, No. 16).
3. Amendment of first paragraph and subsections (a) and (c) filed 7-11-2007; operative 8-1-2007 pursuant to Government Code section 11343.4 (Register 2007, No. 28).
4. Amendment of section and NOTE filed 6-4-2021; operative 6-4-2021 pursuant to Government Code section 11343.4(b)(3) (Register 2021, No. 23). Filing deadline specified in Government Code section 11349.3(a) extended 60 calendar days pursuant to Executive Order N-40-20 and an additional 60 calendar days pursuant to Executive Order N-71-20.

Note: Authority cited: Sections 481, 5010 and 5018, Business and Professions Code. Reference: Sections 480, 481, 490, 493, 5100 and 5100.2, Business and Professions Code.

1. New section filed 2-14-75; effective thirtieth day thereafter (Register 75, No. 7).
2. Amendment filed 4-12-83; effective thirtieth day thereafter (Register 83, No. 16).
3. Amendment of first paragraph and subsections (a) and (c) filed 7-11-2007; operative 8-1-2007 pursuant to Government Code section 11343.4(Register 2007, No. 28).
4. Amendment of section and Note filed 6-4-2021; operative 6/4/2021 pursuant to Government Code section 11343.4(b)(3) (Register 2021, No. 23). Filing deadline specified in Government Code section 11349.3(a) extended 60 calendar days pursuant to Executive Order N-40-20 and an additional 60 calendar days pursuant to Executive Order N-71-20.