On April 21, the Tennessee General Assembly passed SB 1316/HB 1330, which aims to streamline various aspects of state licensing boards. First filed for introduction on Feb. 6, the legislation addresses critical workforce challenges facing the accounting profession by expanding pathways to CPA licensure in the state. In addition, the legislation enhances and modernizes CPA practice mobility.
The portions of SB 1316/HB 1330 addressing the accountancy statute are very similar to the proposed changes that were developed by TSCPA's Human Capital Strategy Task Force which was appointed by Chair Kelly Crow last fall. The proposed changes will add an additional pathway to CPA licensure and protect interstate practice privileges for CPAs. TSCPA believes that these changes 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.
“The additional licensing pathway will provide CPA candidates with options and allow them to choose the path that aligns with their unique circumstances and learning style,” said TSCPA President/CEO Kara Fitzgerald, CPA, CGMA, CAE.
Additionally, the legislation enhances and modernizes CPA practice mobility. Effective July 1, 2025, 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rules of the state, and cease offering services in Tennessee if their license in the state of issuance is deemed to be no longer valid.
“Tennessee is in a unique position in that we border eight states,” said Fitzgerald. “Tennessee CPAs value interstate practice privileges as do the CPAs in our border states. This legislation ensures we maintain that privilege even as licensure models may change in the future."
In January, Ohio became the first state to have a bill signed into law that provides additional pathways to CPE licensure and modernizes interstate practice privileges. Several other states have followed since then, with a total of approximately 25 states pursuing licensure and/or mobility changes in their current legislative session.
“We feel this legislation puts Tennessee CPA candidates and our profession in the best possible place moving forward and that it aligns very well with what we see happening across the country in other states,” said Fitzgerald. “It is a key step in ensuring that the demand for skilled accounting professionals, specifically licensed CPAs, can be met now and in the future.”
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 Senate Majority Leader Jack Johnson and House Majority Leader William Lamberth for sponsoring the legislation, as well as to the full General Assembly for its support in advancing the accounting profession in Tennessee.
If you have questions about the statutory changes please contact the society office at tscpa@tscpa.com.
This article was originally published in the May/June 2025 Tennessee CPA Journal.
