New Pathways Legislation Filed in Texas

November 15, 2024

On November 12, 2024, the first day of pre-filing for the 89^th Texas Legislative Session, Senator Charles Perry, CPA - Lubbock filed SB 262 which will create an additional pathway to licensure for CPA candidates. Advocacy for an additional pathway is a priority item on TXCPA’s recently approved 2025 Legislative Agenda. TXCPA is grateful to Sen. Perry for his continued support and championing issues of concern for our profession. 

The number of students entering the profession has declined for a number years and the profession is not seeing enough licensees to handle the economic growth in our state, as well as the human capital needs of Texas firms and businesses. This has been one of the profession’s leading challenges for the last several years.

Many state CPA societies, AICPA, NASBA, and other pipeline advisory groups and committees have all discussed, proposed, and advanced ways in which students can have an alternative pathway to licensure. Currently, all states require 150 semester hours of education, one year of work experience, and passage of the Uniform CPA Exam. This remains an option for candidates.

TXCPA has been advocating for an additional pathway to licensure for the last two years. SB 262 will create that additional pathway. The new pathway will require the completion of a baccalaureate degree – with the required accounting and business concentration; completion of two years of work experience – the Texas State Board of Public Accountancy will establish rules about the details and specificity of the work experience requirements; and the passage of the Uniform CPA Exam. While the effective date in the introduced legislation is September 1, 2025, TXCPA and others will be advocating for a January 1, 2027, effective date so that all stakeholders can properly implement the new pathway. TXCPA worked very closely with the Texas State Board of Public Accountancy staff and board members on drafting legislation to provide a new licensure pathway. TXCPA and TSBPA both wanted the flexibility to address the extra year of work experience in board rule as the national conversations about competency-based experience develop. TXCPA is appreciative of TSBPA staff willing to work together to address the pipeline and improve the profession.

In addition, TXCPA will introduce legislation for a more uniform and streamlined mobility provision. That legislation will create some minimum standards and guardrails that an out-of-state CPA must meet in order to have practice privileges in Texas. Minimizing the disruption to CPA mobility is our highest priority as the licensure landscape evolves across the country.

Texas and many other states are working on additional pathways and mobility legislation. 2025 will be an exciting year in the profession as many legislatures will be simultaneously addressing ways to attract more students into the profession.

The 89^th Regular Session of the Texas Legislature will officially begin on January 14, 2025, but the rush to file bills early has begun in earnest. On the first day of prefiling a record 1,500+ bills were filed. TXCPA looks forward to advocating on behalf of our members and taking one of many important steps to address our workforce and pipeline concerns as expressed by our members. We look forward to having our members engaged in these important legislative efforts as the session gets underway.