BILL ANALYSIS

Senate Research Center	S.B. 159
88R2064 DIO-D	By: Perry
	Business & Commerce
	3/2/2023
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Currently, to be eligible to take the uniform CPA examination, an applicant must hold a baccalaureate or graduate degree, or its equivalent, conferred by a board-recognized institution of higher education and complete 150 semester hours or quarter-hour equivalents of college credit in board-recognized courses, including at least 30 semester hours of accounting or equivalent courses as determined by board rule.  

S.B. 159 amends the number of hours that an applicant must have completed by the time they sit for the CPA examination. Allowing applicants to sit for the CPA examination after having completed 120 semester hours or quarter-hour equivalents in board-recognized courses, including at least 24 semester hours of accounting or equivalent courses as determined by board rule. Changing the number of credit hours an applicant must have will increase the number of first-time candidates attempting the exam, while not compromising the exam pass rates or scores. Therefore, eliminating a barrier for CPA applicants. 

As proposed, S.B. 159 amends current law relating to education requirements for an applicant to take the uniform CPA examination.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 901.254, Occupations Code, as follows:

Sec. 901.254. EDUCATION REQUIREMENTS. Requires an applicant, to be eligible to take the uniform CPA examination, to:

(1) makes no changes to this subdivision; and

(2) complete at least 120, rather than 150, semester hours or quarter-hour equivalent in Texas State Board of Public Accountancy (TSBPA)-recognized courses, including at least 24 semester hours of accounting or equivalent courses as determined by TSBPA rule, rather than including an accounting concentration or equivalent courses as determined by TSBPA rule.

SECTION 2. Makes application of Section 901.254, Occupations Code, as amended by this Act, prospective.

SECTION 3. Effective date: September 1, 2023.