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 crossborder 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

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

8 CALIFORNIA CPA OCTOBER 2024 www . calcpa . org