Hot off Ohio’s governor signing into law a bill that introduces a bachelor’s only pathway to CPA licensure in that state, a pair of Illinois representatives have introduced a bill that would do the same for aspiring CPAs in their state. And the Illinois CPA Society is cheering it on. They should be, they helped it come together.
The details from the ICPAS press release:
Today, ICPAS is incredibly pleased to have Reps. Natalie Manley, CPA (D-Joliet), and Amy Elik, CPA (R-Edwardsville), sign on to introduce House Bill (HB) 2459, which amends the Illinois Public Accounting Act to create two additional pathways to CPA licensure in Illinois and enhance CPA practice privilege mobility. These new pathways include:
- Obtaining a bachelor’s degree with 120 credit hours of qualifying education (including a concentration in accounting), completing at least two years of relevant work experience, and passing the CPA exam.
- Obtaining a master’s degree, obtaining a bachelor’s degree with 30 hours of concentration in accounting, completing at least one year of relevant work experience, and passing the CPA exam.
“To be clear, HB 2459 will not alter the state’s existing route to licensure. Instead, this legislation establishes two additional pathways to obtain a CPA license in Illinois,” explains ICPAS President and CEO Geoffrey Brown, CAE. “Similar new pathways to licensure are also being explored or pursued legislatively in many of our neighboring states, including Michigan, Missouri, and Wisconsin.”
HB 2459’s synopsis as it appears on the Illinois General Assembly website:
Amends the Illinois Public Accounting Act. Changes the definition of “CPA firm” to remove a reference to limited liability companies and to include professional limited liability companies. Changes references from “substantial equivalency” to “enhanced mobility”. Changes provisions regarding substantial equivalency for an individual whose principal place of business is not in the State but who has a valid CPA license issued by another state to require that the licensure requirements of the issuing state must be equivalent to the criteria in the Act or, if the licensure requirements of the issuing state are not equivalent, to require that the individual must petition the Public Accountant Registration and Licensure Committee for, and obtain from the Public Accountant Registration and Licensure Committee, an equivalency determination (instead of requiring a verification of the criteria by the National Qualification Appraisal Service of the National Association of State Boards of Accountancy). Provides that, on and after January 1, 2027, the Department may license as licensed CPAs, individuals who have received a bachelor’s degree in accounting from an accredited college or university and an exam certificate or certification from the Board and have had at least 2 years of experience as defined by Department of Financial and Professional Regulation rule. Provides that, on and after January 1, 2027, the Department may license as licensed CPAs individuals who have received a master’s degree, a bachelor’s degree with 30 hours of accounting from an accredited college or university and an exam certificate or certification from the Board, and at least one year of experience as defined by Department rule. Changes the organization that the Department may rely on for enhanced mobility determinations from the National Qualification Appraisal Service of the National Association of State Board of Accountancy to the Public Accountant Registration and Licensure Committee. Makes conforming and other changes.
The AICPA’s main gripe with alternate pathways has been the impact different state rules could have on mobility. See: The Beef Between the AICPA and Minnesota Over the 150 Hour Rule Heats Up in which the AICPA pleads with membership to fight against Minnesota’s “burdensome” alternate pathway plan because something something substantial equivalency. No worries, Illinois has a plan to address that concern:
HB 2459 also establishes new requirements for out-of-state CPAs regarding practice privilege mobility. The bill ensures that out-of-state CPAs can continue to serve clients in Illinois without having to obtain an Illinois license if their issuing state’s licensure requirements are equivalent to Illinois’. The bill also ensures Illinois CPAs will have the same practice privileges outside of the state. Though the existing mobility structure is going to change nationwide, Illinois’ alignment with a significant number of states will greatly diminish any threats to Illinois-licensed CPAs’ practice privileges and keep Illinois CPAs at the forefront of the national business landscape.
Who could have guessed that the Midwest of all places would be home to a nest of rebellious accounting societies upending the 150-hour-only rule with the support of state lawmakers? We surely didn’t see it coming.
My understanding is that similar measures are winding their way through a number of state legislatures. I suspect in two years we’ll all be back to where we were before the 150 requirement but with equivalency and portability maintained.
It’s looking that way, yep. And that’s what the AICPA was afraid of when they said Minnesota was upsetting the apple cart as the first state to push alternative pathways. I still don’t understand why they have been fighting so hard to keep 150, it didn’t have the intended effect of increasing salaries or prestige of the CPA nor did it improve quality so what’s the point of clinging to it?
Based on my experience, accountants/CPAs are some of the most “selectively” stubborn people that I’ve ever worked with. They love to refuse admitting to a mistake or poor decision and I think that stems from anyone’s stint in the Big4…where you can’t make mistakes or even admit to them without jeopardizing your “career”.
So I get it, but at this point it’s like the AICPA is refusing to admit that “water is wet”…it’s time to move forward
The 150 hour requirement helped boost income CPAs because some states backed off on the work hours requirement when the 150 hours came in. In states like Florida where CPAs were making just about Minimum wage, like slave labor, while waiting for their hours to be fulfilled, having the 150 hour requirement boosted wages. In California, there is marked difference in compensation packages between having the masters degree and simply a Bachelor’s degree. I do think the extra time does provide a better theoretical understanding of the issues that new CPAs will see and gives clients a better comfort level (i.e., being considered a professional on the same level as the “revered” tax attorney). I would hate to see the profession “dumb down” because of pipeline issues, especially when the issues are far more complex these days. I would rather see the 150 hours be more meaningful and useful in the real world (something like staff training and real “accounting labs” to conduct an audit or prpeare a tax return and know why you are following those procedures.).