New Jersey Senate Passes CPA Licensure Reform Bill
The New Jersey Senate unanimously passed the CPA pathway bill (S-4493) on December 18, allowing candidates to meet educational requirements with either a bachelor's degree or 150 credits. The bill had previously passed the Assembly 78-0 and awaits the governor's signature. This move adds New Jersey to at least 24 states offering alternative pathways, giving most CPA candidates more options.
Key Takeaways
- The New Jersey Senate passed a CPA licensure pathway bill on December 18, positioning the state to join at least 24 others that have enacted legislation or modified rules to offer alternative paths that do not require 150 college credits.
- The bill passed unanimously in both chambers: the Assembly voted 78-0 in June, and the Senate voted 38-0 last month, according to the state legislature's online bill tracking system.
- With New Jersey joining populous states like New York and California, most aspiring accountants will have more options in their career paths. "The majority of CPA candidates now reside in states that offer alternative pathways," said Jack Castonguay, associate professor of accounting at Hofstra University in New York, in an interview on Monday.
Dive Insight
The bill still requires Governor Phil Murphy's signature to become law, according to a spokesperson for the New Jersey Society of Certified Public Accountants, who added that they are awaiting more information from the governor's office on the next steps and timing. Murphy's office did not immediately respond to a request for comment on the bill's status.
New Jersey is poised to join a broader industry push to reform the CPA licensure process to better attract a new generation of candidates and address the accounting talent shortage. Many states have adjusted laws or rules to offer alternative licensure paths that require only a bachelor's degree rather than the current five years of higher education, substituting a second year of professional experience for the fifth year of study typically needed to complete 150 credits.
Under bill S-4493, CPA candidates could qualify for licensure by earning a bachelor's degree or higher (or equivalent) or completing 150 college credits of education, whereas the current system requires all applicants for licensure to complete 150 credits of education.
State Senate Republican Leader Anthony M. Bucco, one of the bill's sponsors, said the legislation aims to make the state a destination for top professionals. In an emailed statement to CFO Dive, he said: "By cutting unnecessary red tape, we are making it easier for current and aspiring CPAs to practice here without jumping through too many hurdles. This is a commonsense measure that helps qualified individuals succeed while strengthening our workforce."
For more on CPA licensure changes, see CFO Dive'srelated tracker。