Another state scraps 150-hour rule

Connecticut is set to become the latest state to scrap accounting’s maligned 150-hour rule.

Legislators approved a bill in late May that would create additional pathways for accounting students to obtain their CPA licenses. As of Thursday, the bill awaited the governor’s signature to become law. (Some of you may remember the old School House Rock jingle.)

If signed into law, the new requirements will become effective Oct. 1.

According to a legislative analysis, the bill would allow Connecticut CPA hopefuls to obtain their license in a few ways. One is by obtaining a Bachelor’s degree with “an appropriate accounting concentration” and logging two years of work experience. Another option is to complete an additional 30 college credit hours on top of that Bachelor’s degree and work for one year. The third way is to earn a postgraduate degree and obtain a year of work experience.

Current law requires an additional 30 credit hours (hence the term “150-hour rule”) plus two years of work experience.

The Connecticut Society of CPAs backed the reforms. “As part of our initiatives to fill the CPA pipeline and ensure our state’s laws are aligned with the evolving needs of the profession, CTCPA is joining more than 30 states nationwide working to modernize CPA licensure and mobility laws,” the group wrote in a post on its website.

AICPA & CIMA, once strong supporters of the 150-hour rule, last month announced their support for alternative pathways to CPA licensure. CFO Brew recently detailed the rise and fall of the rule.