GOVERNOR'S VETO

Pursuant to Article V, Section 6, of the Constitution of Virginia, I veto Senate Bill 1080.

Senate Bill 1080 transfers the Board for Accountancy from under the Department of Professional and Occupational Regulation (DPOR), and creates an individual state agency for a single group of professionals.

The Board for Accountancy exists under a specialized regulatory umbrella within DPOR, sharing staff and resources along with several other equally specialized professions including Architects, Engineers and Real Estate professionals. This structure is similar to the organization of the Department of Health Professionals which allows Doctors, Psychiatrists, Dentists and many other professionals to receive uniform, fiscally sound and appropriate regulatory oversight in order to protect the health safety and welfare of the citizens of the Commonwealth.

DPOR uses a cost allocation system in accordance with the provisions of Virginia Code §54.1-113 (Callahan Act) in order to distribute a proportionate share of agency operating costs to each regulatory program. Removing the Board for Accountancy from DPOR, and its associated fiscal impact, would trigger a statutory requirement causing a mandatory licensing fee increase to be levied against every licensed professional that remains. Each of these fee increases would be subject to the Administrative Process Act (APA), resulting in a torrent of unnecessary regulations and red tape.

SB 1080 would increase the size and cost of government by creating a new state agency with all of its incumbent costs of staffing, purchasing office space, providing computer and technical support and cause similarly situated professionals to absorb fee increases due to the Callahan Act triggers. While large accounting firms may find this to be an acceptable trade off--several small firms and solo practitioners have expressed concern that the costs associated with this expansion of government will make it increasingly difficult to practice in Virginia.

It has been the public policy of the Commonwealth to create a regulatory framework that protects the welfare of her citizens with uniform rules that create economies of scale in both staff and recourses. In order to avoid conflicts of interest, regulatory agencies cannot be dedicated to individual professions--that is the job of their respective trade associations--rather; regulatory agencies must be devoted to the protection of the public. The creation of an additional layer of government with all of its associated costs is simply not appropriate in a Session where we have devoted ample time and energy to ensure government acts in a fiscally responsible manner.

Accordingly, I am returning SB 1080 without my signature.