Gut and amend: legislature wraps up in typical fashion - government relations

California CPA, Oct, 2003 by Bruce C. Allen

At press time, the Legislature was in its last 48 hours before its recess. During this flurry of activity, hundreds of bills--whose contents had never been heard by any policy committee--were being jammed forward in the confusion.

While the general media reported on the Legislature's progress on tackling the workers' compensation crises and a bill for mandatory health insurance, hundreds of other bills were being subjected to "gut and amend" tactics.

This tactic, which is employed all too often late in a legislative session, results in the original contents of a bill being eliminated and new subjects being added. Bills then end up being passed that have never gone through a due diligence process.

The Labor Code Private Attorney Generals Act of 2004

SB 796 (Dunn) has been amended to allow any employee to bring suit against an employer and act as attorney general to enforce any labor violations in civil actions.

The rationale for the bill is that in this time of budget difficulties, state resources for inspection and enforcement are being cut so, "It is therefore in the public interest to provide that civil penalties for violations of the Labor Code may also be assessed and collected by aggrieved employees acting as private attorneys general."

Civil penalties can be quite high. If there are no employees, the fine can be as low as $500 plus court costs and attorney fees. If there are employees, the penalty is $100 per aggrieved employee, per pay period, for the initial violation and $200 per employee, per pay period, for each subsequent violation--in addition to court costs and attorney fees.

The penalties will be divided between the state's general fund (50 percent), the Department of Labor and Workforce Development (25 percent) and the plaintiff (25 percent), but the real payoff will be legal fees to trial attorneys. The bill was awaiting final passage in the Senate at this writing.

AB 1742 E-File

A technical correction bill that would clarify the confusing e-file language enacted in the budget bill is on Gov. Gray Davis' desk. The bill would make it clear that the mandatory e-filing requirement applies to tax forms filed next year by tax practitioners who filed 100 or more individual returns in 2003.

Thomas lino Appointed to CBA

Gov. Gray Davis has appointed CalCPA member Thomas Iino to the California Board of Accountancy. No stranger to the CBA, Iino served previously from 1980--84 and was board president during part of that tenure. During that time, he was a member of the National Association of State Boards of Accountancy and in 1985 was NASBA president. In 1995, Iino received CalCPA's Distinguished Service Award. Five years later, NASBA honored him with its Distinguished Service Award.

Iino is a third-generation Japanese American, and a second-generation CPA. His father Sho, was the first Japanese American CPA in the country

"Because of the negative feelings toward Japanese after World War II," Iino says, "he couldn't get hired anywhere," so he started his own firm, Sho Iino Accountants. It was a firm that grew and grew."

By the time the senior Iino had retired, the firm had offices in Los Angeles, Sacramento, New York and Washington, D.C.

This was due in no small part to Thomas who joined the firm full time in 1965 after graduating from UCLA. In 1983, the firm merged with Deloitte Haskins & Sells.

Iino is now partner in charge of Deloitte & Touche, LLP's International Practice and Japanese Practice. In 1989, Deloitte & Touche merged with Tomatsu & Co., which was Japan's largest accounting firm.

As a 38-year veteran of the CPA profession, Iino has seen many changes in the profession. He volunteered to return to the Board of Accountancy last year after witnessing the controversy surrounding the profession.

"Tom brings with him a legacy of integrity, leadership and knowledge. California consumers are going to be well served by having someone like Tom on the CBA," says Mike Ueltzen, co-chair of CalCPA's Government Relations Committee.

Iino has a long history of community involvement and professional service. In 1995, when he received CaICPA's highest honor, the Distinguished Service Award, it was reported that Iino was "so involved with civic and professional activities that it's easier to describe him by what he doesn't do than by what he does. He doesn't play golf .... "

Then, he was a member of 21 civic and 15 professional organizations. Iino also served on AICPA Council in the 1990s.

Today, Iino's community activities include: the Board of Governors for the Japanese American National Museum, the Little Tokyo Service Center, the Board of Trustees for the UCLA Foundation, the Board of Directors for the Keiro Retirement Home and is the chair of the Board of Directors of the Japanese American Community Cultural Center and the International Asian Advisory Committee of Los Angeles for Supervisor Don Knabe.

Iino has given two explanations for his drive: the desire to give back to a community that has given him so much and the wish to serve as a role model for Asian Americans, which is perhaps what gives him that extra push.