Tennessee Society of CPAs Commends Lawmakers for Passing Legislation Enhancing CPA Licensure Pathways
BRENTWOOD, Tenn. – The Tennessee Society of Certified Public Accountants (TSCPA) applauds the Tennessee General Assembly for recently passing SB 1316/HB 1330, which aims to streamline various aspects of state licensing boards. The legislation addresses critical workforce challenges facing the accounting profession by expanding pathways to CPA licensure.
SB 1316/HB 1330, which was carried by Senate Majority Leader Jack Johnson and House Majority Leader William Lamberth on behalf of the administration, was filed for introduction on Feb. 6. The legislation aligns with Gov. Bill Lee's goal to streamline state boards and simplify licensing. TSCPA believes that the legislation will provide flexible pathways to licensure, maintain the rigorous standards required of CPA candidates, and most importantly, maintain public protection.
The legislation provides two pathways to licensure for prospective CPAs beginning Jan. 1, 2026. Applicants may either 1) complete at least 150 semester hours of college education including a bachelor's degree plus one year of accounting experience or 2) complete at least 120 semester hours of college education including a bachelor's degree plus two years of accounting experience. For both options, the coursework must include an accounting concentration as determined by Tennessee State Board of Accountancy (TSBOA) rule.
Additionally, the legislation enhances and modernizes CPA practice mobility. Current and future CPAs who do not have a principal place of business in Tennessee will be able to practice in the state if they hold a valid CPA license in good standing from another state and if, at the time of licensure, they showed evidence of having passed the Uniform CPA Exam. These individuals must consent to the jurisdiction and disciplinary authority of the TSBOA, comply with the applicable statute and board rules of the state, and cease offering services in Tennessee if their license in the state of issuance is deemed to be no longer valid. These changes will be effective July 1, 2025.
“This legislation is a key step in ensuring that the demand for skilled accounting professionals, specifically licensed CPAs, can be met now and in the future,” said TSCPA President/CEO Kara Fitzgerald, CPA, CGMA, CAE. “Tennessee was a leader in advocating for the 150-hour rule in the ’90s, and as the needs of the profession change, Tennessee will continue to lead in evolving our licensure model to make sure we meet those needs.”
The bill will now be sent to the governor and, upon his signature, will become effective on the stated dates. TSCPA extends its thanks to Johnson and Lamberth for sponsoring the legislation, as well as to the full General Assembly for its support in advancing the accounting profession in Tennessee.
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