Texas board updates CPA certification rules for out-of-state applicants

On March 31, 2025, Texas lawmakers introduced Senate Bill 522, a significant piece of legislation aimed at streamlining the licensure process for certified public accountants (CPAs) from other states. The bill seeks to address the growing demand for accounting professionals in Texas by allowing out-of-state CPAs to practice in Texas without the need for additional state certification, provided they meet certain criteria.

The primary provisions of Senate Bill 522 include the recognition of active CPA licenses from other states, contingent upon the individual having passed the uniform CPA examination and completed specific educational and experience requirements. Notably, the bill stipulates that individuals must have a baccalaureate degree with at least 150 semester hours in accounting or a related field, or a graduate degree with a concentration in accounting. Additionally, it allows individuals who held a CPA license in another state as of December 31, 2024, to continue practicing in Texas without obtaining a Texas license, thereby providing a transitional period for existing practitioners.

The bill has sparked notable discussions among stakeholders, particularly regarding its implications for the accounting profession in Texas. Proponents argue that the legislation will enhance the state's ability to attract qualified accounting professionals, thereby addressing workforce shortages and improving service delivery in the financial sector. Critics, however, express concerns about the potential dilution of standards and the implications for local CPAs who may face increased competition from out-of-state practitioners.

Economically, the bill could have far-reaching effects. By facilitating the entry of qualified accountants into the Texas market, it may stimulate growth in the accounting sector, ultimately benefiting businesses and consumers alike. However, the potential influx of out-of-state CPAs raises questions about the adequacy of local training and education programs to meet the evolving needs of the profession.

As the bill progresses through the legislative process, experts anticipate further debates surrounding its provisions and potential amendments. The outcome of Senate Bill 522 could significantly reshape the landscape of public accounting in Texas, influencing both the regulatory framework and the competitive dynamics within the profession. Stakeholders are closely monitoring developments, as the final decision will likely have lasting implications for the state's economy and the future of accounting practices.