Alternative Pathways to CPA Licensure

Proposals Contain Changes to Licensure Requirements and Updates CPA Mobility 

October 4, 2024 | Updated Nov. 22, 2024

There has been significant discussion in recent years regarding the accounting pipeline, the time and cost of education, and whether the licensure requirements to become a CPA should be reevaluated. The discussion around licensure requirements was often referred to as the 150/120 debate. The AICPA and NASBA recently convened a joint task force to recommend an alternative pathway based on feedback they have received.

In the past several months, the debate has evolved into a broader discussion about alternative pathways and mobility. While the issue has been discussed for some time, the timing and sense of urgency has become paramount as many state boards of accountancy, state legislatures, and state societies have begun to address legislative initiatives in advance of the Uniform Accountancy Act (UAA) exposure drafts.

Two exposure drafts with an invitation to provide feedback and commentary were released in September 2024 related to initial licensure requirements and mobility for CPAs.

• The first exposure draft, titled CPA Competency-Based Experience Pathway provides details on the framework of the new pathway referenced with comments due by December 6, 2024.
  TXCPA comments: CPA Competency-Based Experience Pathway (11-15-24)
  
  
• The second exposure draft would update language to the UAA that would add a new pathway to licensure and update substantial equivalency language which allows CPAs to practice in other states. Comments are due on the proposed UAA language by December 30, 2024.
  TXCPA comments: Proposed Uniform Accountancy Act Changes and Exposure Draft (11-15-24)

The exposure draft process is an opportunity to provide feedback to those responsible for writing the laws and rules that govern the profession. Your responses may determine if these changes are implemented as is or are amended. Once the UAA is amended each state/jurisdiction considers the changes and decides if they will adopt the recommendations.

An Opportunity to Provide Feedback

Your comments and input will be valuable as we position the Society to champion legislation during the upcoming 2025 Texas Legislative session addressing alternative pathways and mobility. Members are encouraged to continue to provide feedback to help us further develop this important transition.  

If you would like to share your thoughts related to these proposals with TXCPA, we welcome your email submissions to chair@tx.cpa.

Timing in Texas is critical as the Texas legislative timeline does not mirror the UAA exposure draft comment period, nor the final adoption of the UAA (which could be in late Spring or early Summer 2025). The Texas Legislature will begin on January 14, 2025 and end in late May and will not be back in session until January 2027.

Comments on the proposals can also be provided directly:

• UAA exposure draft comments
• CPA Competency-Based Experience Pathway comments