Key Takeaways

  • Minnesota lawmakers passed an omnibus bill (Senate File 3045) Monday evening that includes creating a new CPA licensure pathway that does not require 150 college credits. According to a blog post by Geno Fragnito, government relations director for the Minnesota Society of CPAs, the state in 2023 was the first to seek changes to CPA licensure requirements.
  • The bill, effective Jan. 1, 2026, still requires Minnesota Gov. Tim Walz's signature to become law. It creates two new licensure pathways, both requiring passage of the CPA exam: one requires a bachelor's degree plus two years of work experience; the other allows those with a master's degree to obtain licensure with one year of experience. The current pathway, requiring 150 college credits (equivalent to a fifth year of college), one year of professional experience, and passage of the CPA exam, will be eliminated after June 30, 2030.
  • "It's been a journey with twists and turns along the way, but it's really been gratifying to see so many other people and states with similar concerns," Eric O'Link, board chair of the Minnesota Society of CPAs, which supported the law, told CFO Dive. "I'm really excited to see more people enter the accounting profession because we removed a barrier — that extra year of schooling requirement."

Deep Dive

The accounting talent shortage remains a critical issue for finance executives. Beyond the accounting profession's push to change CPA licensure rules, some CFOs are also proactively addressing workforce issues, increasingly taking on larger recruiting roles, in some cases acting like chief human resources officers for their finance departments, to build out their teams, according to a recent Deloitte study.

The momentum to change licensure rules appears to be building this year. Minnesota now joins at least 13 other states — including South Carolina, Oregon, Texas, Tennessee, Iowa, Georgia, Indiana, Utah, Montana, Virginia, Hawaii, Ohio, and New Mexico — that have passed new laws easing CPA licensure pathways, CFO Dive previously reported.

Not all legislation has sailed through state houses. Florida's CPA bill is not expected to pass this year, but Shelly Weir, president of the Florida Institute of CPAs, said she is optimistic it will pass in the next legislative session. Meanwhile, both chambers in Nevada and Alaska have approved similar CPA bills, but they may still need additional signatures to become official, according to Corey Butler, a spokesperson for MNCPA who closely tracks these bills.

"We kind of started this process and initially faced resistance and opposition," Fragnito said, noting that last year was a key turning point in how the initiative was viewed within the profession, as momentum grew once the licensure pathway initiative was recognized as serving the public interest.

Last fall, two staunch opponents shifted to support the initiative, with the American Institute of CPAs (AICPA) and the National Association of State Boards of Accountancy (NASBA) moving to support alternative licensure pathways. Last week, the two associations formalized their support, approving model legislation that states can follow to modify their CPA licensure laws, CFO Dive previously reported.

One of the key concerns for the two associations is the impact these changes have on so-called "mobility," the ability of CPAs to work outside the state where they are licensed. The AICPA's model legislation includes a shift from state-based mobility to individual-based "practice privileges," which they claim preserves the ability of CPAs to work across state lines with a single license.

This is a developing story. Visit our website for live updates.