Pathways CPA licensure bill advances in Senate
March 8, 2024 | Geno Fragnito
Senate File 1660, the MNCPA-backed bill to broaden the pathways to CPA licensure, advanced in the Minnesota Senate today.
On a voice vote, the State and Local Government and Veterans Committee moved the bill to the Minnesota Senate Finance Committee.
Testimony from accounting leaders locally and nationally spoke to the impact this legislation can have on the
talent pipeline issue facing the profession.
“There are multiple studies that show that the 150-hour requirement has created barriers for students, especially minority students, to becoming CPAs. There is no evidence that the 150-hour requirement has improved the quality of the profession,” wrote Jen Leary, CPA, CEO of CliftonLarsonAllen LLP, in testimony to the Senate committee. “We have the power to change this. Minnesota’s exemplary actions to broaden the pathways and increase accessibility to the accounting profession have the potential to increase the number of CPAs overall and encourage hard working, diverse talent to join the profession.”
The bill, a result of member feedback and support from the MNCPA board of directors, offers an additional option to licensure with a bachelor’s degree (120 credits) and two years of work experience — the same requirement in Minnesota until nearly 20 years ago.
The bill also maintains the current 150-hour credit rule.
Many
other states already have additional pathways to licensure in place for CPA candidates, and more states are joining the conversation, including
Arizona,
Virginia and
New Jersey.
"I can tell you from my own experience, through conversations with colleagues throughout the country and the members of the MNCPA, that we have a significant shortage of CPAs,” Bob Cedergren, CPA, the MNCPA board chair told the committee. “The work continues to grow but the supply of CPAs to do the work isn’t keeping up. … We need to move forward. The situation is critical.”
The Senate bill is authored by Sen. Jordan Rasmusson, a Republican, and co-signed by Senate Majority Leader Erin Murphy and Sens. Ann Rest and Zaynab Mohamed, all Democrats.
"It's been our experience that hiring students with 120-credit hours makes absolutely no difference in their performance versus hiring students with 150 credits,” testified Pat Plamann, CPA, managing partner at Schlenner, Wenner & Co. in St. Cloud. “This bill is the pipeline for the life of our firm.”
Sen. Mark Koran offered Rasmusson support for the bill in hopes that it becomes law.
“Hopefully you’ll get it across the finish line,” he said.
Watch the hearing
Visit the Minnesota Senate YouTube channel to
watch the hearing in its entirety.
What about mobility?
Individual state legislatures and boards of accountancy determine licensure and substantial equivalency. Some states are already working on legislative changes that preserve mobility while making slight changes to broadening the pathways.
While the MNCPA solution may not be what ultimately becomes law, we believe an
open discussion including CPAs, educators, regulators and legislators is important as the profession adapts and continues to serve a vital role creating the financial foundations and accountability needed for economic success.
Studies evaluating the impact of the 150-hour rule
Four recent studies show a decline in CPA candidates and, more importantly, a significant barrier to minority populations choosing an accounting degree and taking the CPA exam. These four studies were highlighted in today’s Senate hearing.
What about the House bill?
The House companion bill,
House File 1749, has not received a hearing date yet.
The MNCPA will share a date and time with members when a hearing date it set.
Reaching legislators
Share your insight and support for this bill with your representative and senator.
It’s easy to find who represents you. à
https://www.gis.lcc.mn.gov/iMaps/districts/
A thoughtful email, phone call or meeting with your legislator are all good options to help influence this discussion as it progresses.
Learn more about this CPA pathways initiative
Do you want to learn more about this effort? You can keep up with the evolving conversation by visiting the MNCPA’s webpage about the broadening pathways to CPA licensure initiative.
VISIT CPA PATHWAYS PAGE
Topics: Legislative & Government Affairs, Regulation, Staffing, Professional Certification, Government, Education, MNCPA Programs & Activities
Geno Fragnito
Geno Fragnito is the MNCPA government relations director, advocating on behalf of the CPA profession. His days consist of last-minute meeting changes, building relationships with lawmakers, helping CPAs navigate state government, and putting in more than 15,000 steps per day walking the halls of the Capitol. Geno unwinds with a little golf and traveling with his family. If he weren’t a lobbyist, Geno would perfect his cast and be a professional fisherman. Geno can be reached at 952-885-5550 or gfragnito@mncpa.org.
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