In a recent Earmark webinar, leaders from state CPA societies addressed CPA licensure and a growing misconception that many states want to repeal the 150-hour rule.
As states seek to add an additional pathway to CPA licensure, representatives from the CPA societies of New York, California, Texas, Pennsylvania and Florida spoke about the misconception that states are seeking to remove the 150-hour rule from their accounting certification process.
Multiple state representatives argued there has been a developing narrative that the 150-hour requirement is being repealed across the U.S. While describing their licensure paths, each representative stressed they are introducing new pathways to licensure — but none are attempting to repeal or upend the current 150-hour licensure pathway.
The representatives had other interesting takeaways too, according to the event’s host, Blake Oliver. “I was surprised to learn that 30-plus states have been actively working together for over a year on these concepts, even if the implementation timeline varies,” he said.
“One idea I hadn’t heard before comes from [Texas], which advocated for a ‘regular cadence to practice analysis’ for licensure requirements, which other professions have but accounting doesn’t. This would prevent the profession from needing another major overhaul decades from now,” Oliver said. “I also liked how many states are putting specific requirements, such as the definition of an accounting concentration, in regulatory rules rather than statutes to allow easier adaptation as the profession evolves, especially with technology changes.”
Currently, the American Institute of CPAs and the National Association of State Boards of Accountancy are inviting feedback on a revised proposal for an alternative CPA licensure path.
Breakdown of plans
Calvin Harris, CEO of New York State Society of CPAs
“New York has not yet introduced legislation. We are looking for the best pathway — pun intended — for us. But I can tell you, with the release of the UAA just today, what we do in New York will undoubtedly be in alignment with that as well. Whether we use 120 versus the word bachelor’s — those are fine-tuning points — but I think it’s very safe to say that New York will end up going in that same sort of direction.
If there’s one bit of information that gets me frustrated, it’s when I hear anyone suggest that the 150-hour rule is going away. We’re talking in addition to — not instead of. If a person wants to go down the 150-hour pathway, they can. If they’re already in the pipeline going through the 150 hours now, they’re still on that path. And even for the things being discussed — including here in New York — this doesn’t change what anyone is doing right now.
The way you became a CPA yesterday is the same way you become a CPA today. What we’re talking about is an additional pathway. We haven’t filed legislation yet, but I can assure everyone listening and beyond that we will make sure we are consistent with the rest of the profession.”
Jodi Ann Ray, president and CEO of Texas Society of CPAs
“There’s a bit of misinformation out there. We really wanted to address the time and cost of education as an important component of what licensure looks like in the future. In general, this is what the new pathway looks like in Texas.
For that third pathway to licensure, we are looking for completion of a bachelor’s degree with an accounting concentration — and I say that specifically because it’s not an accounting degree but a concentration — two years of relevant work experience and passage of the Uniform CPA Exam. In this exposure draft, it’s an additional pathway, not taking any of the two existing pathways away.
In the exposure draft, you’re going to see a shift to individual mobility and some safe harbor language to make sure that CPAs who meet existing licensure requirements preserve their practice privileges and mobility.”
Geoffrey Brown, president and CEO of Illinois CPA Society
“Our bill is working its way through the legislative process. I look forward to its passage. The only major difference for us is our effective dates are Jan. 1, 2026, for the mobility fix and 2027 for the additional pathways. Right now, we are really focused on communicating elements of our legislation to various stakeholders because we are getting a ton of questions like, ‘Should I stop the process? Should I start the process?’ We just want to make sure we are supporting everyone as they go through this journey — students, educators and firms. We think this is a big change for the profession, and we want to make sure everyone navigates it successfully.
The only other thing I would add is that we had a rule change go into effect on Jan. 1 to allow individuals to achieve that extra 30 hours through experience. That’s a really big change that we are working with our board of examiners to communicate effectively.
The work experience that is granted to satisfy the 150-hour requirement cannot be satisfied duplicatively with the work experience requirement for licensure.”
Denise LeDuc Froemming, CEO of California Society of CPAs
“As for the legislation, if we could do it quicker, many of us probably would, but we are bound by our legislation and by the process. That’s just what it is for each state. The California Board of Accountancy introduced our bill. We dropped the bill on Feb. 21. The process goes through Oct. 12, and then, if the bill passes — which we believe it will — open mobility will take effect on Jan. 1, 2026. The pathway will take effect on July 1, so we have a six-month overlap.
We also have that legacy pathway — the 150-hour rule — through 2028. The framework is in legislation, and the regulations have much more detail, so it’s much easier to change down the road. We’re trying to build a very flexible model so that we can future-proof it. That’s very important to us.”
Shelly Weir, president and CEO of Florida Institute of CPAs
“Not a day goes by where I am not reminded that Florida was the first state to require the 150-hour rule. We also have legislation we have filed. Today is actually the first day of the legislative session in Florida, so our fun begins now. We filed our bill in early January. We were one of the first bills filed ahead of the legislative session. Importantly, we were also one of only 36 bills — out of 2,000 — that will be heard this session.”
Weir described three primary components of the bill:
- Not doing away with 150-hour but introducing new pathways.
- Introducing automatic mobility in Florida.
- Enhancing licensure by endorsement or reciprocity.
Jen Cryder, CEO of Pennsylvania Institute of CPAs
“Pennsylvania has not yet introduced licensure legislation, but we will soon. We’ve got our bill drafted, and it will be introduced in maybe the next two weeks. We have a full-time legislature in Pennsylvania, but these first couple of weeks of the session were about organizational committee work. So, we are waiting for the right time to introduce the bill, and we are just about there.
We are optimistic about getting it through this year, so we are writing effective dates for both the mobility pathway and the licensure for Jan. 1, 2026. Just like other states, we are doing the three pathways to licensure: the 150 credits, a master’s or a bachelor’s degree. Any of those will work in Pennsylvania. We are also putting automatic mobility in.
I think it’s important to note with the mobility fix: It’s a pretty big shift. Candidates care a lot about the pathway, but firms really care about the mobility fix. Over the last two years, I’ve heard that from practitioners on a daily basis. This automatic mobility fix takes mobility from a state-level concept and makes it an individual mobility track. That’s a really big shift that I don’t think we’re talking about enough — but it’s a really positive shift for the profession.”
