Bill 838 incorporates the national “substantial equivalency” provision to the current statute to enhance the mobility and portability of the CPA license across state lines. This gives CPAs the ability to practice in other states without the burden of applying for additional licenses. Under the current system, CPAs are faced with a multitude of cumbersome processes accompanied by varying requirements and fees.

“This is an extremely important step toward improving the competitive business environment in Pennsylvania,” says Denise L. Devine, president of Pennsylvania Institute of Certified Public Accountants (PICPA). “Lack of a uniform system that allows for fluid practice across state lines has adversely affected businesses, consumers, and firms of all sizes.”

A key element of the substantial equivalency requirement is that CPA candidates must complete at least 150 semester hours of post-secondary education before receiving their certification, beginning in 2012. With passage of this bill, Pennsylvania will join New York, Ohio, West Virginia, and New Jersey in embracing the 150-hour requirement. Currently, 48 of the 55 licensing jurisdictions have this requirement.

“Increased complexities in accounting standards, advances in information technology, and globalization of business have affected the business world,” says Devine. “To stay competitive, Pennsylvania needs to raise the education requirement.”

Bill sponsors include Sen. Jake Corman (R - Centre) and Sen. Patrick Browne, CPA (R - Lehigh), a PICPA member. Senate Majority Leader Dominic Pileggi (R - Delaware) and Senate Minority Leader Robert Mellow (D - Lackawanna) were instrumental in getting Bill 838 in place for consideration on the Senate floor.