California signs CPA pathways bill into law

California Gov. Gavin Newsom signed a bill into law that adds alternative pathways to CPA licensure on Oct. 3. 

Under Assembly Bill 1175, CPA candidates can earn either a bachelor's degree with an accounting concentration and two years of experience, a master's degree and one year of experience, or an approved accounting certificate program for six months of experience. Candidates must still pass the Uniform CPA Exam. The new framework is effective Jan. 1, 2027. 

In addition, the new law ensures interstate mobility, allowing out-of-state CPAs to practice in California. The bill was authored by Assemblymember Jacqui Irwin (D-Thousand Oaks), sponsored by the California Board of Accountancy and supported by state society CalCPA. 

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The California State Capitol building in Sacramento, California
David Paul Morris/Bloomberg

"AB 1175 ensures the CPA profession can continue meeting the needs of Californians," Irwin said in a statement. "As demand for CPA services grows, this legislation addresses workforce challenges by addressing barriers and opening the door wider for talented students — while maintaining the integrity and trust the public depends on."

California is the latest state to announce alternative pathways to licensure outside of the former 150-credit-hour requirement in an effort to address the ongoing CPA talent shortage. Ohio, Virginia, New York, Minnesota, Illinois, Pennsylvania, Georgia, Tennessee and more have passed similar legislation.

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