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Sunset reviews are periodic examinations by state legislatures to assess the necessity, effectiveness, and efficiency of various state functions, including regulatory boards and commissions. The outcome of a sunset review can range from a minor change in the existing law to outright elimination of the regulatory function. In fact, agencies subject to sunset reviews automatically terminate unless renewal legislation is passed. As reported in Table 1, the public accountancy laws of 25 states are subject to sunset reviews. Given the potential substantive results of a sunset review, practicing accountants, educators, and regulators might benefit from a better understanding of the sunset review process and the interplay of the involved parties.
The public accountancy law in Colorado underwent a sunset review during the 2000 legislative session. This provided us the opportunity to examine, in depth and on a contemporaneous basis, the sunset review of a public accountancy law. Various parties, such as government officials, the State Board of Accountancy (SBA), the State Society of CPAs (SSCPA), and ourselves were involved in this process. We were able to interview and/or observe all of these parties. This commentary reflects our observations and experiences with Colorado's sunset review process.
1 The terms of two of these members expired during the deliberations of the task force
2 The task...