Board hears Less Is More Act changes to CPA licensure and national UAA mobility updates

The Tennessee State Board of Accountancy received a legislative update Tuesday about proposed changes to CPA licensure in Tennessee and related national model-law work that could shift how states handle mobility.

Lee Lott, staff member for the board, told members the package commonly called the "Less Is More Act" (Senate Bill 1316 / House Bill 1330, substitute) would create a second pathway to licensure. Under the bill as described to the board, the existing pathway — a bachelor’s degree plus 150 semester hours, one year of qualifying experience and passage of the Uniform CPA Examination — would remain. The new pathway would allow applicants who hold a bachelor’s degree and 120 semester hours plus two years of experience and passage of the CPA exam to seek licensure in Tennessee. Lott also summarized two changes affecting out‑of‑state licensees: reciprocity (licensure for applicants who move their principal business to Tennessee) and mobility (practice privileges for nonresident licensees) would be granted based on proof of a current license in good standing and passage of the CPA exam rather than a showing of “substantial equivalency” between the home state and Tennessee.

The board was told the statute change included an effective date of Jan. 1, 2026, for the new pathway if the bill is enacted and the governor signs it.

Why it matters: the changes would widen who may qualify for Tennessee licensure and would change how Tennessee treats CPAs licensed elsewhere when they practice here — tightening or loosening regulatory friction depending on other states’ requirements.

Board members asked staff how the change would affect who may sit for the exam and whether the state rule for the required accounting concentration is changing. Executive Director Jen (first reference: Jen, Executive Director) said exam eligibility practices remain defined in statute and rule; applicants must meet the board’s degree/concentration requirements to sit, and Jen said staff will work with NASBA to supply additional data (for example, first‑time pass rates for candidates who pass all four exam sections on their first attempt) in future reports.

Separately, board members heard a national update about proposed revisions to the Uniform Accountancy Act (UAA) from NASBA and the AICPA. NASBA treasurer Andy Bonner summarized a joint UAA exposure draft that the organizations circulated earlier this year and said a revised draft will be considered by NASBA and the AICPA boards. The revisions described to the Tennessee board would: clarify educational requirements to sit for the exam, define additional licensure pathways, move from a mobility framework built on “state substantial equivalency” toward one focused on individual licensing criteria (an "individual practice privilege"), and include transitional language (a safe harbor) for licenses granted under prior pathways. Bonner said the UAA revisions are intended to provide a common model for states to consider and that the exposure draft reflects broad stakeholder input.

Members discussed the potential consequences if other states diverge widely (for example, removing education or continuing education requirements). Several members said they plan to continue monitoring Florida’s proposals and other states’ legislative actions because mobility changes in other jurisdictions could affect Tennessee licensees.

The board did not take formal action on the legislation during the meeting; the item was presented as an informational update and staff said they will continue to report developments and coordinate with NASBA and the Tennessee Society of CPAs on implementation implications.