At its September board meeting, the CBA advanced legislative proposals aimed at modernizing CPA mobility and licensing statutes. These changes reflect the CBA’s commitment to adapting to address the CPA pipeline challenges and ensure the long-term success of CPAs and the consumers they serve.

Modernizing CPA Mobility

One significant proposed update to the CBA’s mobility framework involves separating it from rigid licensing requirements. Historically, the CPA profession has built an interstate practice system that allows CPAs to serve clients and the public across state lines, regardless of where their economic interests are based, while maintaining strong consumer protections.

However, the current challenge is that interstate licensing rules are tied to these strict licensure requirements. This has made it difficult to introduce new pathways or reforms without disrupting how CPAs practice across state lines.

The CBA’s proposal addresses this challenge by modernizing the interstate practice framework and detaching it from inflexible licensing rules. This separation gives states the freedom to explore new, more inclusive licensure pathways that better align with the profession’s evolving needs—without causing major disruptions to cross-border practice.

Specifically, the CBA is moving toward an “automatic mobility” framework, which is already in use in several states and is consistent with California’s “four-in-10” mobility rule.

Under this system, CPAs can continue practicing across state lines based solely on their existing license, regardless of where they are licensed or the specific licensure pathway they followed. This flexible model allows for future changes in licensure requirements and maintains robust consumer protections. The CBA will continue to regulate and oversee services provided to California consumers, ensuring that public protection remains a priority, regardless of where the CPA is licensed.

Introducing Alternative Licensure

The CBA is also proposing to modernize its licensure requirements by introducing alternative pathways to CPA licensure that do not solely rely on the completion of 150-semester units. These new pathways are designed to increase flexibility while upholding competency standards essential to the profession.

The CBA has proposed two new licensure options:

• Pathway 1: A bachelor’s degree (with an emphasis in accounting), two years of general experience and passing the CPA exam.

• Pathway 2: A master’s degree (with an emphasis in accounting), one year of experience and passing the CPA exam.

This shift moves from a strict unit-based education requirement toward a focus on degree completion. It also creates a more adaptable and sustainable framework as education systems continue to evolve and clarifies and streamlines the licensing process for both candidates and CBA staff.

By taking these steps, the CBA is ensuring that California’s CPA profession remains adaptable, competitive and prepared for future changes in both education and licensing frameworks, all while continuing to protect consumers and maintain the highest standards.

Now that the CBA has approved legislative language, it will begin to work to introduce legislation in 2025. Once a bill is introduced, it will need to work through the traditional legislative process over the course of next year. Should it pass and be signed by the governor, the provisions would take place Jan. 1, 2026. However, the licensing related changes are likely to have a delayed effective date until later in 2026 or early 2027 to allow for sufficient time for the CBA and candidates to prepare for the changes.

AICPA & NASBA Release Licensing Exposure Draft

While CalCPA, the CBA and several other states are working on practical licensing changes within their respective jurisdictions, the AICPA and NASBA have released an exposure draft proposing a new national pathway to meet CPA licensure requirements.

Based on an initial review, a key difference between California’s proposal and the national draft lies in the experience requirements.

California chose to stick with the existing general experience framework to maintain a straightforward and flexible path for candidates. The national exposure draft suggests a pathway with a new experience framework built around one year of general experience along with an additional year of experience that is focused on embedded professional and technical competencies.

The competency-based framework in the national proposal emphasizes a mix of seven professional and three technical competencies. CPA candidates would need to demonstrate all seven professional competencies—such as ethical behavior, critical thinking, business acumen and communication—and at least one of the three technical competencies: audit and assurance, tax, and financial reporting.

These competencies would be assessed and verified by one or more CPA evaluators within the candidate’s organization.

When developing its own proposal, the CBA was mindful of ongoing national discussions regarding experience requirements and built in flexibility to allow for future adjustments. This flexibility ensures that California can consider incorporating competency-based elements if they align with the state’s licensing needs.

CalCPA is reviewing the national exposure draft and will provide feedback to ensure the proposed pathway supports practical licensure options while preserving a unified interstate practice system as states modify their requirements.

Once CalCPA’s feedback is finalized, it will be shared with members and stakeholders, along with resources like webinars and FAQs to help explain the implications of these licensure changes. These resources will ensure that members have everything they need to provide informed input on the national proposal.