Modernizing CPA Mobility
Over time, the CPA profession has developed an interstate practice system that allows CPAs to work across state lines, enabling them to serve clients effectively regardless of location. This system relies on shared licensing, enforcement and oversight principles across state boards of accountancy. While this framework enables seamless cross-border practice, its reliance on strict requirements, like education for licensure, makes it difficult to make changes, such as new licensure pathways, without disrupting interstate mobility for CPAs.

The CBA's proposal aims to separate the interstate practice framework from rigid licensing rules, enabling more inclusive licensure pathways that align with the evolving needs of the profession—without disrupting cross-border practice. The proposal introduces an “automatic mobility” framework, which is in place in several states and aligns with concepts embedded in California’s existing mobility rule.

This approach enables CPAs to work across state lines simply by holding a CPA license, regardless of the state or pathway they are licensed. It offers flexibility to support current and future changes in licensure while minimizing disruption to interstate practice as the profession explores new pathways. Importantly, it maintains strong consumer protections, allowing the CBA to consider another state’s licensing requirements, among other consumer protection factors, as it regulates accounting services provided to California consumers. Should legislation pass in 2025, the new mobility provisions would take effect Jan. 1, 2026.

Alternative Licensure Pathways
The CBA is proposing to modernize licensure requirements by introducing alternative pathways that do not solely rely on completing 150 semester units, aiming to increase flexibility while maintaining rigor.

The proposal outlines two pathways to CPA licensure: one requires a bachelor's degree with an emphasis in accounting, two years of general experience and passing the CPA exam. The other requires a master’s degree with an emphasis in accounting, one year of experience and passing the CPA exam. This approach provides candidates with more options to meet licensure requirements.

Additionally, the proposal moves specific education details, like defining an accounting concentration, into regulations and shifts from unit-based requirements to focusing on degree completion. This creates clearer guidance and a more adaptable licensure model as education systems evolve.

While, effective dates are not specified and will be determined later through stakeholder discussions to ensure ample preparation time, the CBA is considering a July 1, 2026, effective date (assuming legislation is passed in 2025). The CBA also built flexibility into the proposal to allow for future adjustments, keeping in mind ongoing national discussions about incorporating competency-based concepts into licensure pathways.

CalCPA has actively supported the CBA's efforts to make CPA licensing and interstate practice rules more flexible. CalCPA supports this approach to ensure that California can quickly implement licensing changes, regardless of the final proposal details. Check out our comment letters to the CBA on their proposals:

• CalCPA’s July 2024 Letter to the CBA

• CalCPA’s September 2024 Letter to the CBA