California Assembly Bill 1175: Modernizing CPA Licensure Requirements

On February 21, 2025, Assembly Member Jacqui Irwin introduced Assembly Bill 1175 (AB 1175) in the California Legislature. This bill proposes significant amendments to the state's accountancy laws, aiming to modernize the licensure process for Certified Public Accountants (CPAs) and address the evolving needs of the profession.

Key Provisions of AB 1175

AB 1175 seeks to update various sections of the California Business and Professions Code related to accountancy. The primary objectives include:

• Streamlining Licensure for Out-of-State CPAs: The bill authorizes the California Board of Accountancy to issue CPA licenses to applicants who hold valid licenses from other states, provided they meet specific criteria. This change aims to facilitate the mobility of qualified professionals into California, addressing workforce demands.

• Updating Examination and Education Requirements: AB 1175 proposes revisions to the examination and educational prerequisites for CPA candidates, ensuring alignment with current industry standards and practices.

• Enhancing Regulatory Oversight: The bill includes provisions to strengthen the Board's oversight capabilities, ensuring that licensed CPAs adhere to professional and ethical standards.

  
  

Implications for the Accounting Profession

The introduction of AB 1175 reflects California's commitment to maintaining a robust and adaptable accounting profession. By modernizing licensure requirements, the state aims to:

• Attract Skilled Professionals: Simplifying the pathway for out-of-state CPAs encourages experienced accountants to practice in California, enriching the talent pool.

• Ensure Competency and Integrity: Revised educational and examination standards help maintain high levels of competency among practitioners, safeguarding public trust.

• Enhance Consumer Protection: Strengthened regulatory measures ensure that CPAs operate within established ethical frameworks, protecting consumers and businesses alike.

  
  

Next Steps

As AB 1175 progresses through the legislative process, stakeholders in the accounting industry are encouraged to stay informed and participate in discussions. Engagement with professional organizations, such as the California Society of CPAs, can provide valuable insights and advocacy opportunities.

For more detailed information on AB 1175 and its current status, you can visit the California Legislative Information website.