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After 14 states passed legislation or regulation allowing for alternative pathways to CPA licensure, the AICPA and NASBA have decided to get on the bandwagon.
The associations were once staunch proponents of the “150-hour rule”: the requirement that candidates for CPA licensure have taken 150 hours of college credit, or 30 more hours than are required for a bachelor’s degree. Some states (*cough*Minnesota*cough*), believing this requirement too burdensome, did an end run around them by introducing legislation that would allow for different pathways to licensure.
The associations softened their stance, and, now, they’ve taken another key step toward approving an alternative to the 150-hour rule. The boards of both associations have agreed to amend the Uniform Accountancy Act (UAA) to allow candidates to earn CPA licensure with a bachelor’s degree plus two years’ professional experience in lieu of 150 hours of college credit, the Journal of Accountancy reported.
The 150-hour pathways (a bachelor’s degree plus either a master’s degree in accounting or 30 additional credit hours, plus one year of work experience) are still an option for those who want to pursue them. All pathways require that candidates have a bachelor’s degree and pass the CPA Exam.
The UAA acts as a model legislation that states can customize. It’s up to the states to define what the professional experience requirement means in their jurisdictions.
The AICPA and NASBA originally proposed a competency-based model as an alternative to the 150-hour rule, which would have required a CPA to testify to a candidate’s proficiency across numerous competencies. The associations withdrew that proposal after receiving many comment letters opposed to it from state societies, state boards, accounting firms, and other stakeholders. These groups expressed concern that the CPA evaluation process would be burdensome and subjective, and that it could potentially make evaluators legally liable for their judgments.
Mobility for all: The amendments to the UAA also allow for individual-based mobility, meaning that CPAs would automatically be able to practice across state lines. It also includes a “safe harbor” provision allowing CPAs who are already licensed to have mobility.
The associations expect to release the new amendments this summer.