Pennsylvania and Delaware Legislatures Pass CPA Licensure Pathway Bills
The Pennsylvania and Delaware legislatures each passed CPA licensure pathway bills on Thursday, becoming the latest states to ease requirements for obtaining a certified public accountant license and alleviate the industry's talent shortage. The Pennsylvania bill has been sent to the governor for signature, and the Delaware bill also passed the Senate unanimously. At least 22 states nationwide have now passed similar legislation.
Key Takeaways
- State lawmakers in Pennsylvania and Delaware voted Thursday to pass their respective CPA licensure pathway bills, joining a growing number of states adopting new laws that offer alternative routes to becoming a licensed CPA to ease the accounting talent shortage.
- Pennsylvania's Senate Bill 719, which passed the Senate earlier this month by a 49-1 vote, passed the House unanimously Thursday evening by a 202-0 vote and now heads to Governor Josh Shapiro for his signature, according to the state legislature's website. Delaware's bill (HB 143), which passed the state House on June 12 by a 40-vote margin, passed the Senate Thursday by a 21-0 vote and was sent to Governor Matt Meyer, according to the Delaware legislature's website.
- This brings the number of states that have passed similar legislation to at least 22. The size of Pennsylvania makes this change particularly significant, Robert Pawlewicz, an assistant professor of accounting at the University of Richmond's Robins School of Business, told CFO Dive: "Pennsylvania is one of the states where the change matters a lot (along with New York, Illinois, Ohio, Minnesota, etc.) because states with large cities like Philadelphia and Pittsburgh typically have offices of the Big Four and other large national and international public accounting firms," Pawlewicz wrote in an email response.
Dive Insight
The votes in Pennsylvania and Delaware follow similar legislation passed by North Carolina lawmakers earlier this week. Pawlewicz noted that while CPA pathway bills have stalled in Florida and Maine, states that have passed legislation are seeing the bills signed into law.
"I have not seen a state where the governor has refused to sign the legislation after it passed," Pawlewicz said. "In most states, CPA pathway legislation has passed both chambers with overwhelming majorities. This is really a bipartisan movement that is moving quickly (by the standards of CPA licensure changes)."
Like bills in many states, the Pennsylvania and Delaware legislation aims to add a new route to CPA licensure that does not require 150 college credit hours. Supporters of the initiative argue that the 150-credit requirement poses a barrier because it effectively means completing an additional 30 credits beyond a typical bachelor's degree, equivalent to a fifth year of higher education.
The alternative pathway in the Pennsylvania bill requires a bachelor's degree, two years of experience in accounting, and passing the CPA exam. The law retains the original two pathways: one requiring 150 college credit hours or a master's degree, one year of experience, and passing the CPA exam. The bill also lowers the barrier for out-of-state CPAs to practice in Pennsylvania, removing the current requirement that they obtain both a state certificate and a license to practice, according to the Pennsylvania Institute of CPAs. Similarly, Delaware's bill offers three licensure pathways, one of which requires a bachelor's degree (rather than 150 college credit hours), two years of professional experience, and passing the CPA exam.
For ongoing tracking of CPA licensure changes, see CFO Dive's related tracker.
Editor's note: This is developing news. Please visit our website for real-time updates.