After Michigan reached a last-minute deal recently toavoid a budget crisis, supporters of the state's CPA licensure reform bill hope to see similar "last-minute" action to push the bill through before the end of the year.

"That's the expectation this year," said Bob Doyle, CEO of the Michigan Association of Certified Public Accountants (MICPA), in an interview. He expects that resolving the budget issue will help legislators free up energy to advance other legislation, including the CPA reform bill.

If that timeline is realized, Michigan could bring the number of states that have enacted CPA pathway bills this year to nearly half of all U.S. states. Such bills establish new rules that no longer require candidates to complete 150 college credits (equivalent to a fifth year of college) to become licensed. As previously reported by CFO Dive, New York and Massachusetts are also seen as candidates for passing similar bills in 2025, with New York's legislation still awaiting Governor Kathy Hochul's signature.

Michigan's bill (HB 4893) was first introduced last month by state Representative Mark Tisdel, chair of the House Finance Committee.

MICPA hopes the bill could have a hearing in the Finance Committee as early as next week. But there is a variable: Doyle said the original bill needs to be amended to align with theUniform Accountancy Act, which many states use as a legislative guide, while also fixing details related to the number of years of work experience required for candidates.

A spokesperson for Tisdel's office said the amendments are "part of the legislative process" and plans to submit substitute language at the next committee meeting. That substitute language was provided to CFO Dive by both the spokesperson and Doyle.

Doyle said that after working with the sponsor's office, the amended bill would retain the state's existing pathway, which requires 150 college credits (a bachelor's degree plus 30 credits, or a bachelor's degree plus a master's degree), plus one year of qualifying work experience and passing the CPA exam; it would also add a new route to CPA licensure, consisting of a bachelor's degree plus two years of qualifying work experience and passing the exam. A bachelor's degree is equivalent to an undergraduate degree.

The draft will not include an effective date, but Doyle said the vision is for the bill to take effect immediately after Governor Gretchen Whitmer signs it. Although Doyle said it would not be "a big deal" if the bill does not pass this year, he added that he would prefer to stay in line with other states and noted strong interest in the change.

"I want to push it forward, I don't want to wait," Doyle said.

Supporters of the alternative pathway hope to ease the accounting talent shortage, arguing that current requirements, which typically mean a total of five years of college or graduate education, are a costly barrier. Some critics worry about potential confusion in transitioning to new requirements and fear standards could be lowered; supporters point out that many veteran CPAs were licensed before the current 150-hour requirement was implemented.

As of this year, 22 states have enacted CPA pathway laws: Ohio, Virginia, Utah, Indiana, New Mexico, Iowa, Texas, Georgia, South Carolina, Tennessee, Minnesota, Montana, Oregon, Nevada, Hawaii, Alaska, Illinois, Connecticut, North Carolina, Pennsylvania, Delaware, and California.

To track CPA licensure changes, see CFO Dive'stopic tracker。