California Modernizes CPA Licensure Requirements
Summary
Governor Newsom signed Assembly Bill 1175, modernizing CPA licensure requirements in California. The legislation streamlines qualifications for the CPA exam and license, and updates practice privilege rules for out-of-state licensees. The bill aims to make the CPA designation more accessible while maintaining consumer protection.
What changed
Governor Gavin Newsom has signed Assembly Bill (AB) 1175 into law, which significantly modernizes the Certified Public Accountant (CPA) licensure process in California. Authored by Assemblymember Jacqui Irwin and sponsored by the California Board of Accountancy (CBA), the bill streamlines the requirements for qualifying for the Uniform CPA Examination and obtaining a CPA license. It also updates the practice privilege rules that allow out-of-state licensees to practice in California. The CBA views this as a landmark piece of legislation that will make the CPA designation more accessible while upholding its consumer protection mission.
While the bill takes effect on January 1, 2026, the new licensure requirements will become effective on January 1, 2027, with existing requirements remaining in place until the end of 2028. The CBA is initiating an outreach campaign, including a campus tour, to inform students and faculty about these upcoming changes. Compliance officers should note the phased implementation and prepare for the new requirements to take effect in 2027. The CBA regulates over 115,000 licensees, making this a significant change for the accounting profession in the state.
What to do next
- Review new CPA licensure requirements effective January 1, 2027.
- Prepare for updated practice privilege rules for out-of-state licensees.
- Inform relevant staff and students about upcoming changes to CPA qualification standards.
Source document (simplified)
NEWS RELEASE Date: October 3, 2025 Contact: Outreach@cba.ca.gov GOVERNOR SIGNS AB 1175 – LANDMARK LEGISLATION MODERNIZING CPA LICENSURE IN CALIFORNIA SACRAMENTO – The California Board of Accountancy (CBA) is pleased to announce that Governor Gavin Newsom signed Assembly Bill (AB) 1175 into law on October 3, 2025. AB 1175, authored by Assemblymember Jacqui Irwin (D-Thousand Oaks) and sponsored by the CBA, streamlines the requirements to qualify for the Uniform Certified Public Accountant (CPA) Examination and obtain a CPA license in California. It also modernizes the practice privilege (or mobility) requirements that enable out-of-state licensees to practice in California. “We are excited that AB 1175 has been signed into law,” said CBA President Yen Tu. “This bill aims to make the CPA designation more accessible to Californians from all backgrounds while upholding the CBA’s consumer protection mission.” The bill received strong support from the California Society of CPAs and navigated the legislative process without opposition and without a single “nay” from any committee or floor vote. Dominic Franzella, CBA Executive Officer, stated: “The CBA is very happy with the passage of AB 1175. Its passage is the culmination of nearly two years of collaborative efforts led by the CBA. We facilitated conversations and held multiple townhall meetings to listen to a variety of stakeholders and other jurisdictions to ensure that California CPA applicants have an easier to understand and more streamlined set of licensure requirements.” The bill takes effect on January 1, 2026, while the new licensure requirements become effective on January 1, 2027. The existing licensure requirements remain in place until the end of 2028. The CBA has embarked on an outreach campaign dubbed as the 2025-26 CBA Campus Tour to raise awareness among students and faculty of the new licensure requirements stemming from AB 1175’s passage. Virtual and on-campus events are scheduled with numerous universities and community colleges around the state this fall, with more dates to be added in the spring. You can view the full text of the bill here.
# # Created by statute in 1901, the CBA’s mandate requires that protection of the public shall be its highest priority in exercising licensing, regulatory, and disciplinary functions. The CBA currently regulates more than 115,000 licensees, the largest group of licensed accounting professionals in the nation, including individuals, partnerships, and corporations. Subscribe to CBA E-News or follow us on social media at the icons below to receive links to the digital edition of UPDATE and the latest information on CBA programs and activities.
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