Licensure Talk: A Chain Reaction of Change Across Jurisdictions.

• Author: Fox, Jason

Did you know professional licenses, including, the CPA license, face constant threats from legislative efforts to deregulate occupations? Each year a growing number of state legislatures introduce proposals that would erode core pieces of the CPA licensure framework. And all it takes is one stale or one change to weaken the framework for all states. This is due to the interconnectedness of how the CPA profession is regulated across jurisdictions: A change in one state can have a big impact on the entire CPA profession. Additionally, one seemingly minor change allows for a foothold for additional deregulation efforts to mount.

In recent years, we've seen overreaching proposals in California that would limit how the CBA can license and regulate CPAs. We also have seen broad proposals to remove, or significantly alter, large portions of the licensing framework. While these proposals often don't intentionally target CPAs, the profession is at risk of being swept up in legislation that doesn't distinguish between an occupational or professional license.

To counter this growing trend and protect the CPA license, CalCPA has been working with the National State Boards of Accountancy and the AICPA to educate state legislators and the public about the importance of a strong regulatory framework The Alliance for Responsible Professional Licensing (ARPL) is a coalition of national associations that represents highly complex, technical professions and their national licensing boards.

The coalition is designed to be a unified voice for advanced professions, like CPAs, in the growing debate around the appropriate level of licensure for professions and occupations. This coordination with other professions helps effectively communicate the importance of professional licensing and what's at risk if licensing is weakened.

ARPL's goal is to educate policy makers and the public on the importance of maintaining clear, responsible licensing standards. These efforts will entail coordinated, national communications and engagement strategics to ensure advanced professions have the resources to be strong advocates when deregulation issues are raised.

The services provided by CPAs to consumers, businesses and governmental entities are critical to the state's economic wellbeing and integral to creating trust in our financial systems. The proficiency CPAs achieve through education, testing, experience, ethics and, ultimately, licensure by the CBA is central to why the...