Committee approves updates to CPA practice act, creates alternate licensure pathway

The Senate Labor, Commerce and Industry Committee on Tuesday reported favorably on S.B.176, a broad update to the Certified Public Accountants and Public Accountants Practice Act intended to modernize licensing rules and create an alternate pathway to licensure.

Committee staff said the bill revises terminology, updates licensing, educational and experience requirements, clarifies firm registration and ownership rules and aligns South Carolina’s standards with national practices. A subcommittee amendment removed the definition of “substantial equivalency,” replaced references to specific eligible courses with subject-matter descriptions to give the board discretion when evaluating coursework, and clarified experience requirements for the new pathway: a bachelor’s degree requires two years of qualifying experience, while a master’s degree requires one year. The amendment also clarified acceptable categories of experience, allowed revocable grantor trusts to own CPA firms (not irrevocable trusts), and set the bill’s effective date to June 30, 2025. The later effective date accommodates an active COVID-era extension allowing applicants more time to complete the uniform CPA exam.

Senators said the measure is intended to lower barriers to entry and create supervised, paid pathways (apprenticeships) into the profession amid practitioner shortages. The subcommittee heard questions from a board member and resolved them; no opposition testimony was recorded. The committee adopted the subcommittee amendment and reported the bill favorably by voice vote.