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Pennsylvania and Delaware Enact CPA Licensure Changes

A group of young accounting professionals celebrates their CPA licensure achievement.

News Summary

Pennsylvania and Delaware have approved new legislative changes that allow alternative pathways for obtaining Certified Public Accountant (CPA) licensure. These changes aim to address the accounting talent shortage by reducing barriers associated with the traditional 150 college credit hours requirement. This new legislation is part of a growing trend across the U.S., with at least 22 states implementing similar reforms. The changes have received bipartisan support, aiming to enhance accessibility for aspiring accountants while maintaining professional standards.

Pennsylvania and Delaware Enact CPA Licensure Changes

Pennsylvania and Delaware have recently approved new legislation allowing alternative pathways for individuals seeking Certified Public Accountant (CPA) licensure, contributing to a growing trend across the United States. With the passage of these bills, the total number of states that have enacted similar legislative changes now stands at at least 22.

Recent Legislative Votes

Pennsylvania’s Senate Bill 719 achieved a significant milestone, passing the Senate with a vote of 49-1 and gaining unanimous support in the House at 202-0. The bill is currently awaiting the governor’s signature. Meanwhile, Delaware’s Bill HB 143 passed without opposition in the Senate (21-0) and received 40 votes in the House on June 12.

Addressing the Accounting Talent Shortage

This legislative movement aims to alleviate the accounting talent shortage by offering alternative routes to CPA licensure that do not adhere to the traditional requirement of 150 college credit hours. The 150-hour rule necessitates an additional year of education beyond a typical bachelor’s degree, making it a significant barrier that proponents argue discourages many students from pursuing a career in accounting.

Details of Pennsylvania and Delaware’s New Routes

Under Pennsylvania’s new law, aspiring CPAs will need a bachelor’s degree, two years of accounting experience, and to pass the CPA exam to qualify for licensure. This law retains existing options for licensure that require either 150 college credit hours or a master’s degree, as well as a year of relevant work experience in addition to passing the CPA exam.

In Delaware, the newly approved bill allows three distinct paths to licensure, with one option necessitating just a bachelor’s degree, coupled with two years of professional experience and passing the CPA exam. This flexibility is designed to encourage more individuals to enter the profession.

Trends in CPA Legislation

North Carolina also recently made strides in this area with the passage of the Accounting Workforce Development Act (Senate Bill 321), which is currently awaiting the governor’s signature. This bill mirrors the efforts of Pennsylvania and Delaware by providing alternative licensure routes that bypass the stringent 150-hour education requirement.

The North Carolina Association of CPAs has recognized these legislative changes as a crucial victory for bolstering the accounting talent pipeline in the state.

Varied State Approaches

Although many states are moving toward more accessible licensure pathways, others like Florida and Maine have experienced unsuccessful attempts to pass similar legislation, showcasing a mixed landscape of reforms. Most newly enacted CPA pathways legislation has passed with strong bipartisan support, indicating a collective recognition of the need for these changes across party lines.

Wider Legislative Movement

In addition to Pennsylvania, Delaware, and North Carolina, similar measures aimed at easing CPA licensure are in various stages across states such as Connecticut, Illinois, Ohio, Virginia, Indiana, Minnesota, Iowa, Montana, Tennessee, Georgia, South Carolina, Texas, New Mexico, Utah, Nevada, and Oregon. This expansive movement reflects an industry-wide push to enhance the accessibility of accounting careers amidst a growing labor shortage in the financial sector.

Concerns Regarding Professional Standards

Despite the positive intent of these changes, concerns persist within the accounting profession regarding the potential impact on professional standards. Skeptics argue that lowering educational requirements could compromise the quality of the workforce. The challenge remains to strike a balance between making the profession more accessible and maintaining rigorous standards that ensure the quality of accounting practices.