California Code of Regulations › Title 16 - Professional and Vocational Regulations › Division 1 - State Board of Accountancy › Article 9 - Rules of Professional Conduct › Section 54.4 - Discontinuance of Licensee's Practice

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
A licensee that discontinues their practice but does not sell
				  or transfer the practice to another person ("successor person"), as defined in
				  section
				  5035
				  of the Business and Professions Code, shall comply with all of the
				  following:
(a) Send a written notice
				regarding the discontinuance of the practice to each client as provided in this
				section. The notice shall be sent via first-class or certified mail to the last
				known address of the client, or via electronic transmission as provided in this
				section. The notice shall contain, at a minimum, the date of discontinuance of
				the practice and, if the licensee maintains any client records, the date and
				method of delivery or return of any client records. The licensee shall also
				return any client records, without delay, or as agreed upon with the client.
				The licensee is not required to provide notification to former
				clients.
(b) If the licensee is
				unable to contact a client, that client's records shall be retained for a
				period of not less than four years from the date the licensee's practice
				discontinues, or if the client's records include audit documentation as defined
				in section
				68.2, for the time period set by
				section 68.3, whichever is longer. A
				notice returned to the licensee, either by mail or electronic transmission,
				would demonstrate that the attempt to contact the client was
				unsuccessful.
(c) After the
				retention period indicated in subdivision (b), the licensee shall dispose of or
				arrange for the disposal of client records that are no longer to be retained by
				the licensee by shredding, erasing, or otherwise modifying the personal
				information in those records to make the records unreadable or undecipherable
				through any means.
(d) For the
				purposes of this section, "electronic transmission" means the transmission of a
				document by electronic means to the electronic mail address at or through which
				a client has authorized or consented to such communication method. Proof of
				such authorization and consent for electronic transmission shall be
				demonstrated through a written confirmation of such agreement from the client.
				As part of that agreement, at the time of giving consent to electronic
				transmission, the client shall provide their electronic mail address for the
				purpose of receiving electronic notice or documents from the
				licensee.
(e) "Client records"
				shall have the meaning set forth in section
				68 and shall include working
				papers as defined in section
				68.1 if considered part of the
				client's records as specified by section
				68.
Note: Authority cited: Sections
					 5010
					 and
					 5018,
					 Business and Professions Code. Reference: Sections
					 5018
					 and
					 5063.3,
					 Business and Professions Code; and Section
					 1798.81, Civil
					 Code.