According to a release from the California Society of Certified Public Accountants (CalCPA), Gov. Gavin Newsom signed Assembly Bill 1175, which modernizes California's CPA licensure requirements.
"AB 1175 is a win for the profession, aspiring CPAs, and the public,” noted Denise LeDuc Froemming, president and CEO of CalCPA. “It recognizes the diverse ways people gain the skills to succeed, aligns with today’s marketplace and keeps California a leader in career growth and economic opportunity.” The new licensure framework takes effect on Jan. 1, 2027.
The bill was authored by Assemblymember Jacqui Irwin, sponsored by the California Board of Accountancy (CBA) while being supported by CalCPA.
This newly-signed law establishes "more flexible, affordable and accessible pathways for aspiring CPAs—while preserving the strong consumer protections the profession is known for," CalCPA said.
The CalCPA stated that AB 1175 is the most "significant update" to the state’s CPA licensure framework in decades. It achieves the goal of modernizing education requirements to establish an alternative to the added year of education on top of a bachelor’s degree. The extra year meant additional cost and delayed licensure for prospective CPAs while erecting barriers for "too many talented people."
“AB 1175 ensures the CPA profession can continue meeting the needs of Californians,” Assemblymember Jacqui Irwin (D-Thousand Oaks) stated. “As demand for CPA services grows, this legislation addresses workforce challenges by addressing barriers and opening the door wider for talented students—while maintaining the integrity and trust the public depends on.”
AB 1175 requires that CPA candidates need to earn a bachelor’s degree with an accounting concentration, pass the CPA Exam, and complete two years of general accounting experience.
For more flexibility, these candidates are allowed to substitute a qualifying master’s degree for a year of experience, or an approved accounting certificate program for six months of experience.
“Modernizing CPA licensure has been a top priority,” stated Yen Tu, president of the California Board of Accountancy. “With AB 1175, we’ve made the profession more accessible while preserving the strong consumer protections at the heart of licensure.”
Aside from offering added paths to CPA licensure, the new law also updates the state’s long-standing CPA cross-border practice program, This ensures that CPAs can continue to meet their client and consumer needs effectively across state lines, CalCPA stated.