Dive Brief:
- Texas has become the latest state to pass legislation providing an alternative path to certified public accountant licensure that does not require 150 college credit hours, according to a Thursday post on the Texas Society of Certified Public Accountants’ website.
- The legislation, aimed at drawing more new professionals into the accounting talent pipeline and easing the industry’s labor crunch, will enable CPA candidates to get licensed by completing a bachelor’s degree with an accounting concentration, two years of work experience and passing the CPA exam, according to TXCPA.
- Senate Bill 262 passed both chambers of the state legislature and is now headed to Texas Gov. Greg Abbott’s desk to be signed into law. “This game-changing legislation creates an additional pathway to CPA licensure — helping to strengthen the talent pipeline while maintaining the high standards that make CPAs trusted experts,” the Texas accounting society said in its post.
Dive Insight:
CFO Dive’s Tracking CPA licensure paths is closely watching legislation as it is introduced and passed throughout the country. While early critics of the move raised concerns such changes might lower professional standards, the initiative has gained momentum this year.
Texas along with Tennessee, Indiana, Montana, Iowa, Georgia, Ohio, Virginia, New Mexico, Utah and Hawaii have passed laws that remove the 150-hour college credit hurdle, which is effectively a fifth year of schooling.
The Texas bill passed both the state senate and house unanimously, TXCPA said. After the act takes effect on Sept. 1, 2025, the Texas State Board of Public Accountancy will adopt rules needed to implement the changes, according to the bill. It’s not clear whether it passed on Wednesday or Thursday, according to Corey Butler, a spokesperson for the Minnesota Society of CPAs that is closely tracking state CPA pathways legislation.
