Key Takeaways

  • Maryland Governor Wes Moore signed the state'sCPA licensure reform bill (HB643) on Tuesday, a spokesperson for the governor's office confirmed. According to the National Association of State Boards of Accountancy (NASBA), Maryland isone of about 39 states that have passed legislation to ease licensure requirements.
  • The new law effectively lowers a long-controversial barrier to entering the profession by adding an alternative path that does not require 150 college credits, typically equivalent to five years of higher education.
  • Under the new rules, which take effect October 1, CPA candidates in the state can substitute more work experience for the additional academic requirements. The new path requires candidates to pass the CPA exam, earn a bachelor's degree, and complete two years of professional experience.

Deep Dive

The move, aimed at reversing the decline in accounting student numbers, has also drawn some criticism. Some argue that the traditional path betterprepares candidates for the rigorous demands of the examand the profession. Meanwhile, some industry figures initially worried it would create inconsistent licensing standards across states, underminingCPAs' ability to practice across state lines。

However, industry consensus has shifted over time. Since early last year, calls for licensure reform have grown nationwide. In Maryland, the bill was co-sponsored by CPA Del. William Wivell and received strong support from the state accounting association.

"This milestone is the result of the accounting profession—locally, nationally, and globally—working together, debating, listening, and ultimately uniting around a path forward to createmore opportunities," Rebecca Olson, CEO of the Maryland Association of CPAs, wrote in a LinkedIn post on Wednesday.

Jack Castonguay, an associate professor of accounting at Hofstra University in New York, praised Maryland's reform effort. "They've solved the hardest part," he said in an interview, noting that the nationwide push for CPA pathways has moved well past the "tipping point."

However, he also said the transition period could see hiccups depending on how specific the new laws are. For example, New York's CPA pathway law takes effect in November but lacks some key details, he said.

Many students are still waiting for guidance on whether they will still need 150 college credits if they started taking the CPA exam before the new rules took effect, Castonguay said.

"All these states are quickly passing 120-credit rules, but they're not telling people how these rules apply to them," he said. "That's what many students are still worried about."

For ongoing coverage of CPA licensure changes, visit CFO Dive'srelated topic tracker page。