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Committee advances bill creating alternative pathways to CPA licensure amid workforce shortage
Summary
Senate File 15-36, proposing alternative pathways to CPA licensure to address a statewide shortage of certified public accountants, had an author's amendment adopted and was laid over for possible inclusion; testimony emphasized workforce impacts on small cities, nonprofits and public entities.
Senator Zachary Rasmussen presented Senate File 15-36, which would create alternative pathways to licensed certified public accountant (CPA) status in Minnesota by allowing a bachelor’s degree plus two years of relevant work experience or a master’s degree plus one year of experience as alternatives to the current 150-semester-hour pathway. The committee adopted an A2 author’s amendment and laid the bill over for possible inclusion.
Rasmussen said the additional 30 credit requirement for the 150-hour rule imposes an opportunity cost and contributes to a declining number of CPA candidates. "When you take the additional cost of that year of schooling plus lost earnings, it can easily be a hundred thousand dollar opportunity cost for that additional year of college," he said. Sponsor testimony emphasized that, under the bill, all candidates would still be required to sit for and pass the CPA exam.
Multiple witnesses representing municipal governments, accounting professional organizations and the State Auditor testified in support. Cap O'Rourke, executive director of the Minnesota Association of Small Cities, told the committee small cities are struggling to find auditors and have open RFPs that go unanswered. Boz Bostrom, chair of the Minnesota Society of CPAs board of directors and an accounting professor, and Samantha Metcalf, managing principal of CLA’s Minneapolis office, described workforce and pipeline issues and supported alternative pathways that retain the CPA exam requirement. State Auditor Julie Blaha testified in strong support and described routine difficulties local entities face finding auditors.
Testimony and witnesses cited research and practice-based evidence that the 150-hour requirement has contributed to declining CPA enrollment and that other states are moving to alternative pathways; witnesses said national groups including the American Institute of CPAs and the National Association of State Boards of Accountancy have recently shifted support toward alternative pathways. The A2 author's amendment was adopted by voice vote; the bill was then laid over as amended for possible inclusion in subsequent committee action.
