The Future of CPA Licensing: TXCPA Members in Action at the State Capitol

By Kenneth Besserman, TXCPA Director of Government Affairs and Special Counsel, and DeLynn Deakins, Today’s CPA Managing Editor

The accounting profession is facing transformative challenges in 2025, with a growing need to address the CPA talent pipeline and licensing pathways in Texas and beyond. As workforce trends shift globally and nationally, state legislatures and professional associations are taking bold steps to modernize the profession and make it more accessible, adaptable and aligned with current workforce demands.

The Talent Shortage: A National Concern

For years, the CPA profession has grappled with a declining talent pipeline, a problem that reflects broader global workforce trends. Between 2022 and 2050, the working-age population in 61 out of 195 countries is projected to shrink by 1%.

In the U.S., the working-age population has grown by only 3% over the last decade, while the non-working population has increased by 13%. This demographic shift, combined with 10,000 baby boomers reaching retirement age daily, has left industries – accounting included – struggling to fill critical roles.

In response, AICPA launched the National Pipeline Advisory Group (NPAG) in 2023. This group explored data-driven solutions, recommending six strategies to address the talent shortage:

• Tell a more compelling story.
• Address the cost and time of education.
• Make the academic experience more engaging.
• Provide better support to CPA Exam candidates.
• Enhance the employee experience.
• Expand paths for underrepresented groups.

In Texas, TXCPA has been actively working on pipeline strategies for years, formalizing a statewide CPA pipeline strategy in 2022 and bringing much-needed visibility to this issue.

Reimagining CPA Licensure Pathways

Traditionally, becoming a CPA has required completing 150 semester hours, including an accounting concentration, passing the Uniform CPA Exam and completing work experience under a licensed CPA. While this structure remains foundational, recent changes and proposals aim to add flexibility to the path to licensure.

In 2023, Texas passed new CPA Exam eligibility requirements that now require the completion of 120 semester hours, including 21 hours of upper-level accounting courses and 24 hours of upper-level business courses. Additionally, changes to the national CPA Exam, which started in 2024, now include completing four Exam sections within a 30-month window, with three core sections (FAR, REG, AUD) and one elective from Business Analysis and Reporting (BAR), Information Systems and Controls (ISC) or Tax Compliance and Planning (TCP).

To become licensed, candidates must also complete 150 semester hours of education and 2,000 hours of relevant work experience over two years.

New Licensing Pathways: Flexibility for the Future

Recognizing the cost and time barriers associated with the traditional 150-hour requirement, AICPA and NASBA issued an exposure draft proposing an alternative pathway. This proposal would allow candidates to substitute an additional year of work experience (totaling 2,000 hours over five years) for the extra 30 semester hours of education. The goal is to broaden access while maintaining high professional standards.

In Texas, legislative efforts to add flexibility are gaining traction. Senate Bill 262 (SB 262), filed by Senator Charles Perry, CPA, and House Bill 1757 (HB 1757), filed by Representative Angie Chen Button, CPA, introduce a new licensure pathway requiring:

• A bachelor’s degree with an accounting concentration.
• Two years of work experience, as defined by the Texas State Board of Public Accountancy (TSBPA).
• Successful completion of the CPA Exam.

If passed, the legislation will take effect on September 1, 2025, though stakeholders are advocating for a delayed implementation to January 1, 2027.

The key benefits of SB 262/HB 1757 include:

• Flexibility: Adapts to different financial and educational circumstances.
• Affordability: Reduces financial and time barriers to licensure.
• Workforce Development: Expands the CPA pipeline to meet increasing demands in business, government and capital markets.

It is important to note that the 150-hour requirement would remain an option for candidates, and proposed alternative pathways still include the required accounting and business concentrations needed in the 150-hour pathway.

Alternative pathways are being considered in at least 30 jurisdictions, reinforcing the need for modernization of the licensure process. By creating alternative pathways, this legislation ensures the CPA profession remains accessible and responsive to evolving workforce needs.

Strengthening Mobility for CPAs

As licensing requirements change from state to state, the issue of mobility – ensuring CPAs can practice across state lines – has become critical. To address this in Texas, Senator Perry and Representative Button have introduced Senate Bill 522 (SB 522) and House Bill 1764 (HB 1764) respectively, which aim to enhance and modernize mobility standards.

These bills will ensure CPAs licensed in other states can continue to practice in Texas if they meet key requirements:

• Licensure and good standing in their home state.
• A bachelor’s degree with required accounting and business courses.
• One to two years of work experience, depending on the licensure pathway.
• Passing the Uniform CPA Exam.

The key benefits of SB 522/HB 1764 include:

• Consistency: Protects Texas businesses and taxpayers by maintaining professional standards for out-of-state CPAs.
• Clarity: Strengthens interstate mobility laws to accommodate changing licensure requirements nationwide.
• Autonomy: Ensures that Texas retains control over CPA practice privileges within the state.

Dynamic Guest Speakers

The day’s agenda was also packed with powerhouse speakers:

• Marta Zaniewski, AICPA Vice President of State Regulations & Legislative Affairs – Delivered an insightful update on federal issues and state CPA licensing issues that are progressing around the country, issues that our members need to know about as we advocate for licensing changes in Texas.
• Scott Braddock, Editor of Quorum Report – Offered an exclusive preview of the 2025 Legislative Session, sharing information on political and relationship issues that are often the undercurrent of what goes on behind the scenes during session and what may help or hurt the progress of legislation.
• Glenn Hegar, Texas Comptroller of Public Accounts – Provided a deep dive into the state’s economic outlook, the budget surplus in Texas, the needs that the state faces with an ever-growing population, the important work that the Comptroller’s office does, and the valued relationship TXCPA has with his office.
• Mark Koziel, President and CEO, AICPA – In his first state society visit since taking on his new leadership role at AICPA in January, Mark talked about the challenges to the profession and the opportunities that exist to move the profession forward.

Texas Leaders in Action for the Accounting Profession

Senator Charles Perry, CPA

CPA Pathways Legislation: Filed Senate Bill 262

CPA Mobility Legislation: Filed Senate Bill 522

Sen. Charles Perry, R-Lubbock, is a practicing CPA. He currently chairs the Senate Committee on Water, Agriculture, and Rural Affairs and is Vice-Chair of the Senate Health and Human Services Committee. He also sits on the Senate Committees for Finance, State Affairs, and Transportation, and he co-chairs the State Water Implementation Fund for Texas Advisory Committee and the Texas Infrastructure Resiliency Fund. Since his election to the Texas Senate in 2014 – following two impactful terms in the Texas House – Sen. Perry has championed conservative principles, striving to cut government waste and improve efficiency. A proud West Texan, he remains deeply committed to policies that strengthen both his district and the state.

Representative Angie Chen Button, CPA

CPA Pathways Legislation: Filed House Bill 1757

CPA Mobility Legislation: Filed House Bill 1764

Rep. Angie Chen Button, R-Richardson, wears multiple hats as a CPA and an experienced leader in economic policy. In the past, Rep. Button has chaired various committees, including the International Relations and Economic Development Committee, and has served as a member of the Ways and Means Committee. With a background at Texas Instruments (TI), Rep. Button brings a sharp business perspective to the legislature, ensuring economic growth and fiscal responsibility remain top priorities. Before her election to the Texas House, she had a long record of public service and community involvement in the Dallas/Fort Worth Metroplex.

TXCPA Advocacy Day 2025: A Powerful Voice at the Texas Capitol

On January 28, TXCPA hosted a dynamic Advocacy Day, bringing together accounting professionals, students and legislative experts to make an impact for important accounting profession issues at the Texas Capitol.

TXCPA Chair Mohan Kuruvilla, Ph.D., CPA-Houston, set the tone for the day, emphasizing the importance of advocacy in shaping policies that affect the profession. Legislative Advisory Committee Chair Josh LeBlanc, CPA-Southeast Texas, followed, recognizing the dedicated volunteers behind the Key Person program, an influential network of around 150 TXCPA members who build and maintain strong relationships with lawmakers.

A lively panel discussion provided attendees with key insights into TXCPA's legislative agenda and strategies for engaging with policymakers. The panel featured TXCPA’s Director of Government Affairs and Special Counsel Kenneth Besserman, President and CEO Jodi Ann Ray, and contract lobbyists Denise Davis and Lisa Kaufman – seasoned experts with deep knowledge of Texas politics and TXCPA’s priorities.

The panel discussed the key legislative issues of the session, with a strong focus on the CPA pipeline and two pivotal bills for TXCPA and the profession. They explored the impact of SB 262/HB 1757, which aim to establish a new pathway to CPA licensure, and SB 522/HB 1764, designed to modernize and enhance CPA mobility.

With fresh inspiration on their minds, TXCPA members descended upon the Capitol to talk to legislators and staff about our 2025 legislative agenda. They met with over 140 legislators and legislative offices.

TXCPA was well received by legislators and staff and, most importantly, developed some new relationships and built on existing relationships. Our pathways and mobility bills are common sense approaches to address the CPA pipeline issues, and many legislators and offices understood that workforce development is a key issue that the legislature should address.

A special highlight was Senator Charles Perry, CPA, introducing and passing Senate Resolution 8, officially recognizing TXCPA for its contributions and designating January 28 as TXCPA Advocacy Day. Additionally, Rep. Suleman Lalani championed House Resolution 110, further solidifying TXCPA’s presence at the Capitol. A big thank you to both legislators for their continued support and partnership with TXCPA!

Advocacy Day 2025 was a great success, and we will use all the work that our advocates and attendees did at the Capitol to further our agenda for the remaining months of the session. This event was a powerful reminder that when CPAs come together, their voices can influence meaningful change.

TXCPA’s 2025 Legislative Agenda includes: Additional Pathway to Licensure; Mobility for Existing and Future CPAs; Public Information Act Amendment; Evergreen TXCPA Advocacy Items, including: Prevent Any Proposed Sales Tax on Professional Services; Ensure Proper Regulatory Oversight of the CPA License; and Monitoring Proposed Tax Legislation

Click here for more details. We encourage all members to join in advocating for these important issues.

The Road Ahead

As Texas and other states take proactive steps to address the CPA pipeline and mobility challenges, the profession is poised for significant transformation. By embracing flexibility, affordability and modernization, these legislative efforts aim to ensure the CPA profession remains robust, accessible and ready to meet the demands of a rapidly changing economy.

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