Committee advances bill to shorten pathway to CPA, let board set exam and education rules

Representative Underwood presented HB 509, which he said ‘‘allows the State Board of Public Accountancy to set [educational prerequisites] by rules instead of statute’’ and would add email notifications in addition to postal mail. He described the measure as a step to ‘‘open up the pathway to become a CPA quicker’’ to address workforce pipeline needs.

Underwood explained current and proposed timing: ‘‘today, you have a 4‑year degree, a master’s, then you can sit for the exam. If you pass the exam, then one year of experience with the firm before you can have the … title of a certified public accountant. Also … if you have a 4‑year degree, pass the exam … then two years of experience with the firm, you also will have your certificate.’’ He said the bill leaves those distinctions but would let the board set details by rule.

Committee members asked whether the bill would allow candidates to practice before receiving the formal CPA title. An unidentified senator contrasted the CPA path with the bar for lawyers, and Underwood replied that candidates ‘‘can work. They can practice. But the title itself … comes after the experience,’’ adding that most candidates sit for the exam soon after graduation.

A representative of the Alabama Society of CPAs, cited during the hearing, expressed support and said the change mirrors trends elsewhere in the country. The committee recorded a favorable report after debate and a roll-call with multiple ‘‘Aye’’ votes and one recorded abstention.

The bill now goes forward from committee with the record showing committee support. The committee did not adopt a separate amendment changing the core structure of the experience requirements during the hearing; sponsors and supporters said they would continue to work with stakeholders on implementation details.