Press Releases

Governor Signs CPA Law Bill

Amended bill improves CPA mobility as businesses expand beyond Pa. borders

HARRISBURG, Pa. – Governor Edward G. Rendell signed Senate Bill 838 into law July 10, amending and revising the Pennsylvania CPA Law.  As a result, CPA licenses will have more mobility across state lines allowing them to seamlessly serve clients conducting business in multiple states.  Enactment of SB 838 was necessary for Pennsylvania-licensed CPAs to be on equal footing with CPAs in other states. The new legislation will take effect in 60 days.

“Passing this law aligns Pennsylvania CPAs with a national effort to not only increase the ability of us to serve our clients practicing in multiple states, but also better protects the public interest, by providing the State Board of Accountancy with stronger enforcement authority,” says Eric Wallace, CPA, president, Pennsylvania Institute of Certified Public Accountants.

The CPA Law was last amended in 1996 – before the Y2K hysteria and two years before Google was incorporated.  Today, electronic filing and online commerce are the norm and many companies have effectively become borderless because of the ease of conducting business over the internet. 

The law provides interstate practice mobility under “substantial equivalency,” meaning that the education, examination, and experience requirements of another state are comparable to or exceed the requirements in the CPA Law. As a result of this legislation, Pennsylvania CPAs will be authorized to provide services in states that also embrace substantial equivalency.

To reach substantial equivalency standards, the Pennsylvania law increases the minimum amount of education required to obtain a CPA certificate and license from 120 to 150 hours, which is already the standard in 43 other states. However, CPA candidates may still sit for the exam with only 120 hours. CPAs currently licensed in Pennsylvania will be grandfathered into the new policy, and will not need additional training to practice in other states.

The new education requirements will take effect in 2012.

Another piece of the legislation will affect firm ownership by allowing 49 percent of a CPA firm to be owned by non-CPAs.  This provision is particularly helpful to smaller practices and is currently allowed in 38 states.  Other updates within the bill include those to peer review terminology and the CPA examination process and license renewal. 

PICPA would like to thank the following key supports of the bill: Sens. Jake Corman, Pat Browne, CPA and Tommy Tomlinson as well as Reps. Mike Sturla, William Adolph Jr., Gordon Denlinger, CPA, Mike Peifer, CPA, John Maher, CPA and Craig Dally.

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To speak with a local CPA regarding the effect this newly signed bill will have to CPA business practices and education requirements, please call Kathleen Miller at 215-972-6188 or email kmiller@picpa.org or Jim DeLuccia at 267-675-6255 or email jdeluccia@picpa.org.

Founded in 1897, the Pennsylvania Institute of Certified Public Accountants is a professional association of more than 19,000 CPAs who work in public accounting, industry, government, and education. PICPA is the second-oldest state CPA organization in the United States. To find a member CPA in your area, visit our Web site at www.picpa.org and click on CPA Locator. Students and educators can visit PICPA’s specially designed site www.CPAzone.org to get the latest information about careers in accounting and the CPA profession.