The last-minute passage of amendments to the Pennsylvania CPA Law, capping a very successful advocacy effort in 2022.
by PICPA Government Relations Mar 14, 2023, 17:06 PM
By Peter N. Calcara, PICPA vice president – government relations
On Nov. 3, 2022, then Pennsylvania Gov. Tom Wolf signed legislation that updates the Pennsylvania CPA Law. Enactment of this bill – which was championed by the PICPA and was nearly five years in the making – capped a successful 2021-2022 legislative session for the PICPA and its government relations team in Harrisburg.
The process for amending the CPA Law began in 2018 with the PICPA identifying several deficiencies in the law that were impacting competitiveness with other states. Working with various stakeholders in the accounting community, including the Pennsylvania State Board of Accountancy, the AICPA, and the National Association of State Boards of Accountancy, the PICPA drafted amendments that would help eliminate some of the obstructions in the accounting career pipeline, would modernize outdated practices, and would generally streamline processes for CPAs working in Pennsylvania. Legislation was introduced in the 2019-2020 legislative session, but the bill did not move. At the start of the 2021-2022 session, Rep. Keith Greiner, CPA (R-Lancaster), introduced House Bill 1328.
Once the legislation was formally introduced, the PICPA government relations team met with legislators and staff working on the state House and Senate licensure committees to explain the changes and alleviate concerns. In January 2022, House Bill 1328 unanimously passed the House committee, and in February 2022 it was considered by the full House, where it again passed unanimously.
The bill was then referred to the Senate, but the two-year legislative session was winding down. If it did not pass, we would have had to start over. The PICPA began making contingency plans should the bill have to be reintroduced in the 2023-2024 session. Then, on Oct. 24, during the final voting week of 2022, a breakthrough! The bill was scheduled to be considered by the Senate Consumer Protection and Professional Licensure Committee. House Bill 1328 again passed unanimously, and then it received final passage by the full Senate the following day – the final voting day of the year.
House Bill 1328, now Act 110 of 2022, directs the State Board of Accountancy to adopt a nationally recognized code of professional conduct, permits applicants for licensure to sit for the CPA Exam upon completing 120 credits and no degree, and expands the scope of classes accounting students can take toward earning a degree.
Act 110 also makes much-needed revisions and updates to peer review standards. These changes include the following:
Commenting on our success in advocating for these amendments, Jennifer Cryder, CPA, PICPA’s CEO, said, “The PICPA works every day on behalf of CPAs in Pennsylvania, solving problems and creating opportunities for the profession. We are so proud of these amendments to the CPA Law because they represent the best of what we can do together – we identify what the profession needs to be future-ready and then convene influencers and decision-makers to make that happen. I’m certain the CPA profession in Pennsylvania will be better because these changes have been made.”
The PICPA thanks Rep. Greiner for his unwavering support and guiding this bill through a challenging and unpredictable legislative process.
“As an active CPA, it was an honor to be able to shepherd this bill through the legislative process in Harrisburg,” said Greiner after the bill was signed into law. “This is an important piece of legislation for the CPA profession. It keeps the Pennsylvania CPA Law on pace with the rapid changes our profession is facing.”
Act 110 capped a very successful 2021-2022 legislative session for the PICPA. In addition to the CPA Law amendments, several other bills advanced by the PICPA became law. These include Act 1 of 2021 (PPP loan forgiveness); Act 10 of 2021 (local tax due date/corporate tax due date); Act 17 of 2022 (local tax due date); Act 53 of 2022 (corporate tax reduction and reform); Act 103 of 2022 (Philadelphia net operating losses); Act 108 of 2022 (quarterly estimated personal income tax payments); and Act 122 of 2022 (Pennsylvania Business Corporation Law modernization).
Successes harder to quantify are all the proposals or amendments that we worked hard to make sure did not materialize or get a vote. A case in point was onerous add-back language that was under consideration as part of the fiscal year 2022-2023 budget. The proposed language would have given the Department of Revenue unfettered oversight over corporate taxpayer returns. The PICPA pushed back, and it was ultimately dropped.
In January, a new session of the Pennsylvania General Assembly kicked off with nearly 60 new legislators. The PICPA and its government relations team will be ready for the challenges and opportunities as they arise in the new session with its new faces, new perspectives, and new agendas.
Order by
Newest on top Oldest on top