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• Author: DALTON, TOM
• Position: Accountants licensure

2 Pathways for CPA Licensure in California

Patiently awaiting signature, somewhere among the heaps of IF bills on Coy. Davis' desk in Sacramento, lay AB 585 and SB 133. These two laws-in-waiting dramatically change the licensing requirements for California CPAs. They don't make it easier to become a CPA, instead they reflect the natural evolution of the profession and offer two similar, yet distinctly different licensure pathways.

In response to this legislation, the California Board of Accountancy has proposed new regulations to implement the changes in CPA licensing requirements that take effect next year These regulations address several issues including transition rules, education requirements, examination elections and qualifying experience. If adopted, both the new law and proposed regulations will take effect Jan. 1, 2002.

Relying heavily on task force recommendations, the CBA will substantially revise current regulations to reflect AB 585 (Nation, Campbell) and SB 133 (Figueroa et al.). Further, the new law extends California's present requirements until Dec. 31, 2005 for candidates already in the CPA pipeline.

Two New Pathways

AB 585 and SB 133 offer candidates two new pathways for certification. Both pathways require candidates to complete a bachelor's degree with 24 semester units of accounting-related courses and 24 semester units of business-related courses before sitting for the Uniform CPA Examination. However, after that point, the two pathways diverge.

THE EXAM

Pathway 1 allows candidates to pass the exam under the current format: A candidate must sit for at least two parts of the exam initially. Once passed, candidates may sit for the remaining sections individually.

Pathway 2 follows the Uniform Accountancy Act (UAA) format and requires a candidate to sit for all unpassed sections concurrently. To receive passing credit for a section under Pathway 2, a candidate must pass at least two sections, and receive at least 50 percent on all unpassed sections.

Conditional credit under both pathways is good for only three years.

EDUCATION

Pathway 1 requires no additional education for licensure beyond that needed to sit for the exam (i.e., a bachelor's degree with the required accounting and business units).

Pathway 2 requires 150 total semester college-level units for licensure. The extra units (beyond those required to sit for the exam) can be in any subject.

EXPERIENCE

Pathway 1 requires two years of accounting experience for...