The Minnesota state senate has moved one step closer toward possibly enacting a bill that would provide alternate methods of obtaining the CPA credential.
On Friday (March 15, 2025), the state senate’s State and Local Government Committee will hold a hearing on SF1536, which is defined as, “A bill for an act relating to state government; modifying standards for required education and experience for certified public accountants; establishing reciprocity for licensed public accountants … “
The Minnesota State Society of CPAs has supported the proposal, which it says has broad bipartisan support.
According to the MNCPA’s Geno Fragnito:
The legislation would create additional pathways to CPA licensure by allowing for a bachelor’s degree along with two years of general work experience or a master’s degree with one year of general work experience; this would join the current path of 150 hours and one year of general work experience. None of the education and experience paths would change the requirement to pass the CPA exam. A candidate must pass the exam to become licensed — the ultimate bar to enter the profession.
The legislation also includes automatic mobility and changing the regulations to make the Minnesota Board of Accountancy the entity determining substantial equivalency, not NASBA’s National Quality Appraisal Service (NQAS).
These changes don’t solve the entire talent pipeline problem but they do address barriers identified in several research studies. The research has shown that the cost of additional education is a significant barrier to many would-be CPAs. It also shows that 150 hours has resulted in a 15% reduction in first-time CPA exam candidates after the 150-credit requirement was implemented with the decline aggregating over multiple years. Additionally, the research shows no increase in work quality after 150 hours were implemented.
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Tags: Accounting, cpa, licensure, Minnesota, pathway, state society
