CPA pathways bill introduced in Minnesota Senate
February 17, 2025 | Geno Fragnito
Minnesota is one step closer to offering additional pathways to CPA licensure and automatic mobility.
Senate File 1536 was introduced today in the Senate State and Local Government Committee. The bill continues to have bipartisan support and is carried by Sen. Jordan Rasmusson, a Republican, and Sen. Ann Rest, a DFLer.
The legislation would create
additional pathways to CPA licensure by allowing for a bachelor’s degree along with two years of general work experience or a master’s degree with one year of general work experience; this would join the current path of 150 hours and one year of general work experience. None of the education and experience paths would change the requirement to pass the CPA exam. A candidate must pass the exam to become licensed — the ultimate bar to enter the profession.
The legislation also includes automatic mobility and changing the regulations to make the Minnesota Board of Accountancy the entity determining substantial equivalency, not NASBA’s National Quality Appraisal Service (NQAS).
These changes don’t solve the entire
talent pipeline problem but they do address barriers identified in several research studies. The research has shown that the cost of additional education is a significant barrier to many would-be CPAs. It also shows that 150 hours has resulted in a 15% reduction in first-time CPA exam candidates after the 150-credit requirement was implemented with the decline aggregating over multiple years. Additionally, the research shows no increase in work quality after 150 hours were implemented.
I expect the bipartisan House companion bill to be introduced later this week.
There has been much change since 2023 when the MNCPA was the first state to introduce and support legislation creating additional paths to become a CPA. Since then,
nearly 30 states have followed the MNCPA lead and have or are expected to introduce similar legislative changes to create additional pathways to licensure. Ohio has already signed new pathways and automatic mobility into law this year.
The MNCPA will continue to update you as these bills progress through the Minnesota Legislature.
Learn more about this CPA pathways initiative
Do you want to learn more about this effort? You can keep up with the evolving conversation by visiting the MNCPA’s webpage about the broadening pathways to CPA licensure initiative.
VISIT CPA PATHWAYS PAGE
Topics: Legislative & Government Affairs, MNCPA Programs & Activities
Geno Fragnito
Geno Fragnito is the MNCPA government relations director, advocating on behalf of the CPA profession. His days consist of last-minute meeting changes, building relationships with lawmakers, helping CPAs navigate state government, and putting in more than 15,000 steps per day walking the halls of the Capitol. Geno unwinds with a little golf and traveling with his family. If he weren’t a lobbyist, Geno would perfect his cast and be a professional fisherman. Geno can be reached at 952-885-5550 or gfragnito@mncpa.org.
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