Information about California’s Recently Introduced Legislation

The California Board of Accountancy (CBA) is sponsoring legislation as part of the 2025 legislative session to enhance the requirements for CPA licensure and modernize mobility in California. Assembly Bill 1175 was authored by Assembly Member Jacqui Irwin and introduced February 21, 2025.

The CPA licensure requirement enhancements of the bill make the pathway to licensure more flexible. The provisions seek to focus the educational requirements on the degree earned, instead of a particular number of units. Elements of the bill are:

Establishing the minimum educational requirements as a bachelor's degree with a concentration in accounting-related courses, and eliminating the total unit requirement (currently 150 semester units).

Allowing for the reduction in the minimum accounting concentration unit requirement by eliminating non-relevant courses (e.g. architecture and philosophy).

Increasing the experience requirement and authorizing the CBA to accept specified advanced degrees to substitute up to one year of experience. The CBA may also substitute the completion of specific certificate or training programs for part of the experience requirement.

Setting the educational requirements to be the same for examination and licensure.

Authorizing the CBA to recognize specific degrees as meeting all educational requirements, thereby creating an "expressway" for transcript review purposes.

As is displayed in the first box, the minimum educational requirements now consist of a bachelor’s degree with an accounting concentration (see the Related Regulations section for more details). The elimination of the 150 total unit requirement addresses the potential barrier to entry into the profession that a costly fifth year of school poses, especially within minority communities. Flexible licensure requirements create opportunities for a more diverse and skilled workforce to enter the profession. Having enough CPAs to meet the high demand for critical financial services in the future is paramount to ensuring consumers have access to competent and ethical CPAs they can trust.

The mobility provisions of the bill seek to create an open mobility framework instead of relying on the substantial equivalency of each state’s licensure requirements. This would allow states to alter licensure requirements to suit their needs without disrupting mobility. Should the CBA determine a state is not providing the proper consumer protection, it could remove the ability for that state’s licensees to practice with no notice in California. This is in addition to the safeguards already in place regarding practice privilege for out-of-state licensees.

BACKGROUND

The CBA approved a legislative proposal in the fall of 2024 to enhance the requirements for CPA licensure and modernize mobility in California. The proposal was the culmination of many months of collaborative discussions as part of the CBA’s Students Understanding the Requirements to be a CPA Project – or SURE CPA Project for short.

There were extensive information-gathering activities including surveys, townhall meetings, focus groups, and presentations from the American Institute of Certified Public Accountants (AICPA), National Association of State Boards of Accountancy (NASBA), and the California Society of Certified Public Accountants (CalCPA).

CBA MEETING DISCUSSIONS

LEGISLATIVE PROCESS

Now that the legislative proposal has been officially introduced as Assembly Bill 1175, it begins to work its way through the legislative process. The 2025 legislative session happens during the spring and summer, with the ultimate deadline of September 12 to pass bills to the Governor’s desk. The Governor has 30 days to sign or veto bills once received.

A timeline for possible implementation of the new licensure requirements and the phasing out of the current (legacy) requirements was determined at the November 2024 CBA meeting. The graphic below shows how if the law is passed in 2025, it would take effect on January 1, 2026. The mobility provisions would begin at that point, but there would be a six-month implementation window before the new licensure requirements would take effect on July 1, 2026. The legacy requirements would remain as an option until December 31, 2028.

Graphic of below text

RELATED REGULATIONS

Assembly Bill 1175 was written to allow for certain details to be established in regulations. The CBA has begun having discussions about those details, including the unit requirements for the “accounting concentration.” After engaging in stakeholder input, the CBA is considering the following to make up the accounting concentration:

  • 24 semester units of accounting
  • 24 semester units of business
  • 3 semester units of ethics
The accounting concentration, along with a bachelor’s degree, make up the entirety of the educational requirements specifically addressed in AB 1175.

The accounting concentration requirements above would also be used as the educational requirements for examination, meaning the educational requirements for examination and licensure would be the same. This new, streamlined model should be a welcome change to the legacy requirements which call for additional subject categories and unit requirements for licensure. If the above does end up being the final unit requirements, that would result in an increase to the examination requirements of 3 semester units of ethics.

Other details, such as how the completion of certain certificate or training programs could count as some of the general accounting experience requirement, will be discussed at future CBA meetings in 2025. Once the bill is passed, the CBA will release regulations for public input.

NATIONAL PERSPECTIVE

California is by no means the only state moving forward with potential changes to the CPA licensure requirements. Approximately 10 other states currently have pending legislation that would create a new pathway similar to what California is proposing. The mobility provisions of the CBA-sponsored bill allow flexibility for other states to modify their licensure requirements without jeopardizing mobility by moving to a CPA=CPA model. No longer would California be required to recognize other states as being “substantially equivalent” when it comes to licensure requirements. An individual licensed in another state would be allowed to practice public accountancy in California without notice, much like drivers licensed in another state are allowed to drive in California.

MULTIMEDIA
National Articles About CBA Legislation

Podcasts

  • Accounting for California Podcast: CBA Executive Officer Dominic Franzella and CalCPA President & CEO Denise Froemming discuss the legislative proposals approved by the CBA aimed at enhancing CPA licensure requirements and modernizing mobility within California.
  • Bloomberg Tax: California Explores Relaxing CPA Education Rules

California Society of Certified Public Accountants

Other Articles About Licensure Changes and Accounting Profession

FAQs

What is flexible about the proposed licensure requirements?

The bill establishes a single set of requirements to meet the “Three Es” of education, examination, and experience:

  • Baccalaureate degree and an accounting concentration of courses
  • Uniform CPA Examination
  • Two years of general accounting experience
The bill provides flexibility in how an applicant can meet the education and experience requirements. For example, the bill allows for advanced degrees in accounting-related subjects to substitute for a year of general accounting experience. The bill also authorizes the CBA to recognize the completion of certificate or training programs as a substitute for a portion of general accounting experience.

How does the bill provide increased clarity for an Aspiring CPA?

A single set of licensure requirements is simple and easy to understand, especially compared to a multiple pathway approach. Additionally, the bill authorizes the CBA to recognize specific degrees as fully meeting the educational requirements. Students enrolled in CBA-recognized degree programs would have confidence that by earning that degree they would meet the minimum educational requirements for examination and licensure.

Will students need to attend a CBA-recognized college/university or program?

The CBA will not be recognizing colleges or universities, so students will have the flexibility to attend the accredited school of their choosing. The CBA will, however, be recognizing specific degree programs as meeting the minimum educational requirements for licensure, but students are not required to attend schools with degree programs recognized by the CBA.

How are the examination requirements being changed?

The bill requires the examination and licensure educational requirements to be the same; namely, a baccalaureate degree and a concentration of accounting-related courses. The accounting concentration unit requirements will be established in regulations pending passage of the bill. The CBA has engaged in stakeholder input on what the unit requirements for the accounting concentration might be and directed staff to write regulations consistent with the following:

  • 24 semester units of accounting
  • 24 semester units of business
  • 3 semester units of ethics
If the above does end up being the final unit requirements, that would result in an increase to the examination requirements of 3 semester units of ethics.

How are the examination requirements being changed?

The bill requires the examination and licensure educational requirements to be the same; namely, a baccalaureate degree and a concentration of accounting-related courses. The accounting concentration unit requirements will be established in regulations pending passage of the bill. The CBA has engaged in stakeholder input on what the unit requirements for the accounting concentration might be and directed staff to write regulations consistent with the following:

  • 24 semester units of accounting
  • 24 semester units of business
  • 3 semester units of ethics
If the above does end up being the final unit requirements, that would result in an increase to the examination requirements of 3 semester units of ethics.