Representative Schrage presents House Bill 121 to address Alaska's CPA shortage

Alaska's Senate State Affairs Committee convened on April 22, 2025, to discuss House Bill 121, a pivotal piece of legislation aimed at addressing the state's critical shortage of Certified Public Accountants (CPAs). The bill proposes significant changes to the current licensure requirements, which many stakeholders believe are hindering the entry of new professionals into the accounting field.

Representative Schrage presented the bill, highlighting that Alaska's CPA licensure requirements currently exceed national standards, necessitating 50 credit hours beyond a bachelor's degree. This requirement has contributed to a 30% decline in CPA exam candidates since 2016, mirroring a national trend. House Bill 121 seeks to lower the credit requirement to align with the standard 120 credit hours for a bachelor's degree, thereby reducing barriers for aspiring CPAs.

In addition to modifying educational requirements, the bill also aims to streamline the process for out-of-state CPA firms to operate in Alaska. Currently, these firms must obtain a permit to provide services, even without a physical presence in the state. The proposed changes would allow for greater mobility and accessibility, encouraging more firms to serve Alaskan clients and ultimately enhancing the availability of accounting services.

Support for House Bill 121 was voiced by several key figures in the accounting community, including Beth Stewart, managing partner at KPMG in Anchorage, and Krista Berson, president of the Alaska Society of CPAs. Both emphasized the importance of modernizing licensure pathways to attract new talent and address the workforce shortage. They noted that the additional 30 credit hours required under current law often deter potential candidates from pursuing CPA licensure, as many students struggle to balance work and personal commitments alongside their studies.

The committee also heard concerns about the implications of reducing educational requirements, particularly regarding the preparedness of CPAs for roles such as conservators. However, stakeholders maintained that the core qualifications, including passing the CPA exam and relevant work experience, would remain unchanged.

As the committee moves forward with deliberations, the implications of House Bill 121 are clear: if passed, it could significantly reshape the landscape of accounting in Alaska, making the profession more accessible and responsive to the needs of local businesses and residents. The bill represents a proactive step towards ensuring that Alaska remains competitive in a rapidly evolving professional environment.