SB 1291: Board of Public Accountancy; Qualifications; Licensure; Certified Public Accountants
- Session Year: 2025-2026
- House: Senate
- Latest Version Date: 2025-02-26
Current Status:
In Progress
(2025-04-11: Act 014, on 04/10/2025 (Gov. Msg. No. 1114).)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Final Decking
Enacted
Clarifies the education and professional experience requirements for certified public accountant license applicants to establish alternative pathways to licensure. (SD1)
Clarifies the education and professional experience requirements for certified public accountant license applicants to establish alternative pathways to licensure. (Proposed SD1)
Clarifies the education and professional experience requirements for certified public accountant license applicants to establish alternative pathways to licensure.
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THE SENATE |
S.B. NO. |
1291 |
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THIRTY-THIRD LEGISLATURE, 2025 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO CERTIFIED PUBLIC ACCOUNTANTS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that business and commerce continue to grow more complicated, increasing the need for well-qualified certified public accountants in the State and nationwide. At the same time, however, a declining percentage of students in accounting classes are pursuing certified public accountant (CPA) licenses. In part, this decline is due to the requirement of thirty additional semester hours of education, beyond the requirements of a bachelor's degree, to obtain a CPA license. The time and monetary costs of this additional education can be a serious obstacle for many students. Thus, the additional education requirement effectively blocks many potential candidates from obtaining CPA licenses, at a time when more qualified CPAs are needed.
The purpose of this Act is to generate more qualified CPAs by establishing alternative pathways to licensure that eliminate certain barriers for eligible applicants.
SECTION 2. Section 466-5, Hawaii Revised Statutes, is amended by amending subsections (a) through (d) to read as follows:
"(a) A license and a permit are required to practice public accountancy. The board may license and grant the designation of "certified public accountant" to any person who has met the following:
(1) Attained eighteen years of age;
(2) Possesses a history of competence, trustworthiness, and fair dealing;
(3) Educational requirements of this
section [or section 466-5.5];
(4) [Experience requirements of] Completed
two years of professional experience meeting the requirements in subsection
(d);
(5) Examination requirements of subsection (e); and
(6) Paid the appropriate fees and assessments.
(b) The educational requirement for a license shall include a baccalaureate degree conferred by a college or university recognized by the board with at least eighteen semester hours of upper division or graduate level accounting or auditing subjects as determined by rules adopted by the board pursuant to chapter 91, and:
(1) Completion of not less than thirty
semester hours of study in addition to those semester hours required for a
baccalaureate degree[. The
baccalaureate degree and the thirty semester hours of additional study shall
include a minimum of eighteen semester hours of upper division or graduate
level accounting or auditing subjects.
The]; provided that the content of the additional qualifying
hours of study shall be determined by rules adopted by the board pursuant to
chapter 91; or
(2) [If the applicant has a minimum of
eighteen semester hours of upper division or graduate level accounting and
auditing subjects, the applicant may elect to replace the thirty semester hours
with an additional thirty months of professional experience in a public
accounting practice. This] In
lieu of the thirty semester hours described in paragraph (1), the applicant may
demonstrate completion of an additional twelve months of professional
experience in the practice of public accounting only; provided that this experience
shall not be credited toward the experience requirements in subsection [(d).]
(a)(4).
(c) A person shall be exempt from the
requirements in subsection (b) [or section 466-5.5] if that person:
(1) Holds a current license as a public accountant under section 466-6; or
(2) Holds, and has continued to hold, a valid comparable certificate, registration, or license of certified public accountant of another state for a period of not less than ten years preceding the date of the person's application under this section, and has been in active practice of public accountancy in one or more states for a period of not less than five years preceding the date of the application.
(d) Each applicant shall present satisfactory
evidence in the form of a certified statement from present or former
employer(s) that the applicant has [met one of the following experience
requirements for license:
(1) Completion of one thousand five
hundred chargeable hours in the performance of audits involving the application
of generally accepted accounting principles and auditing standards earned while
in public accounting practice; or
(2) Completion of two years of] completed
the required professional experience in public accountancy practice as
defined in section 466-3. Completion of
experience in private or government accounting or auditing work, deemed by the
board to be equivalent to professional experience in public accountancy
practice as defined in section 466-3, may be substituted for all or part of the
two years of professional experience in public accounting practice[.] required
in subsection (a)(4). The nature,
variety, and depth of acceptable private or government accounting or auditing
experience shall be defined by the board in its rules."
SECTION 3. Section 466-5.5, Hawaii Revised Statutes, is repealed.
["§466-5.5
Educational requirements for licensure effective December 31, 2000. Effective December 31, 2000, an applicant for
licensure shall have at least one-hundred-fifty semester hours of college
education. Within the one‑hundred‑fifty
semester hours, the applicant shall have:
(1) A baccalaureate or higher degree
conferred by a college or university acceptable to the board; and
(2) An accounting concentration or its
equivalent as specified in the rules of the board;
except
that applicants for licensure who have successfully completed the Uniform
Certified Public Accountant Examination before December 31, 2000, or held
conditional credit before December 31, 2000, and subsequently completed the
examination before the conditional credit expired, may continue to meet the
educational requirements of section 466-5(b)."]
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect upon its approval.
Report Title:
Board of Public Accountancy; Qualifications; Licensure; Certified Public Accountants
Description:
Clarifies the education and professional experience requirements for certified public accountant license applicants to establish alternative pathways to licensure. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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THE SENATE |
S.B. NO. |
1291 |
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THIRTY-THIRD LEGISLATURE, 2025 |
S.D. 1 |
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STATE OF HAWAII |
Proposed |
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A BILL FOR AN ACT
RELATING TO CERTIFIED PUBLIC ACCOUNTANTS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that business and commerce continue to grow more complicated, increasing the need for well-qualified certified public accountants in the State and nationwide. At the same time, however, a declining percentage of students in accounting classes are pursuing certified public accountant (CPA) licenses. In part, this decline is due to the requirement of thirty additional semester hours of education, beyond the requirements of a bachelor's degree, to obtain a CPA license. The time and monetary costs of this additional education can be a serious obstacle for many students. Thus, the additional education requirement effectively blocks many potential candidates from obtaining CPA licenses, at a time when more qualified CPAs are needed.
The purpose of this Act is to generate more qualified CPAs by establishing alternative pathways to licensure that eliminate certain barriers for eligible applicants.
SECTION 2. Section 466-5, Hawaii Revised Statutes, is amended by amending subsections (a) through (d) to read as follows:
"(a) A license and a permit are required to practice public accountancy. The board may license and grant the designation of "certified public accountant" to any person who has met the following:
(1) Attained eighteen years of age;
(2) Possesses a history of competence, trustworthiness, and fair dealing;
(3) Educational requirements of this section [or
section 466-5.5];
(4) [Experience requirements of] Completed
two years of professional experience requirements in subsection (d);
(5) Examination requirements of subsection (e); and
(6) Paid the appropriate fees and assessments.
(b) The educational requirement for a license shall include a baccalaureate degree conferred by a college or university recognized by the board, at least eighteen semester hours of which shall include upper division or graduate level accounting or auditing subjects as determined by rules adopted by the board pursuant to chapter 91, and:
(1) Completion of not less than thirty semester hours
of study in addition to those semester hours required for a baccalaureate
degree[. The baccalaureate degree and the thirty semester hours of
additional study shall include a minimum of eighteen semester hours of upper
division or graduate level accounting or auditing subjects. The]; provided
that the content of the additional qualifying hours of study shall be
determined by rules adopted by the board pursuant to chapter 91; or
(2) [If the applicant has a minimum of eighteen
semester hours of upper division or graduate level accounting and auditing
subjects, the applicant may elect to replace the thirty semester hours with an
additional thirty months of professional experience in a public accounting
practice. This] In lieu of paragraph (1), the applicant may demonstrate
completion of an additional twelve months of professional experience in the
practice of public accounting only; provided that this experience shall not
be credited toward the experience requirements in subsection (d).
(c) A person shall be exempt from the
requirements in subsection (b) [or section 466-5.5] if that person:
(1) Holds a current license as a public accountant under section 466-6; or
(2) Holds, and has continued to hold, a valid comparable certificate, registration, or license of certified public accountant of another state for a period of not less than ten years preceding the date of the person's application under this section, and has been in active practice of public accountancy in one or more states for a period of not less than five years preceding the date of the application.
(d) Each applicant shall present satisfactory
evidence in the form of a certified statement from present or former
employer(s) that the applicant has [met one of the following experience
requirements for license:
(1) Completion of one thousand five hundred
chargeable hours in the performance of audits involving the application of
generally accepted accounting principles and auditing standards earned while in
public accounting practice; or
(2) Completion of two years of] completed
the required professional experience in public accountancy practice as
defined in section 466-3. Completion of experience in private or government
accounting or auditing work, deemed by the board to be equivalent to
professional experience in public accountancy practice as defined in section
466-3, may be substituted for all or part of the two years of professional
experience in public accounting practice[.] required in subsection (a)(4).
The nature, variety, and depth of acceptable private or government accounting
or auditing experience shall be defined by the board in its rules."
SECTION 3. Section 466-5.5, Hawaii Revised Statutes, is repealed.
["§466-5.5 Educational
requirements for licensure effective December 31, 2000. Effective
December 31, 2000, an applicant for licensure shall have at least
one-hundred-fifty semester hours of college education. Within the
one-hundred-fifty semester hours, the applicant shall have:
(1) A baccalaureate or higher degree
conferred by a college or university acceptable to the board; and
(2) An accounting concentration or its
equivalent as specified in the rules of the board;
except that applicants for licensure who have
successfully completed the Uniform Certified Public Accountant Examination
before December 31, 2000, or held conditional credit before December 31, 2000,
and subsequently completed the examination before the conditional credit
expired, may continue to meet the educational requirements of section 466-5(b)."]
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect upon its approval.
Report Title:
Board of Public Accountancy; Qualifications; Licensure; Certified Public Accountants
Description:
Clarifies the education and professional experience requirements for certified public accountant license applicants to establish alternative pathways to licensure. (Proposed SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
|
THE SENATE |
S.B. NO. |
1291 |
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THIRTY-THIRD LEGISLATURE, 2025 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
Relating to Certified Public Accountants.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that business and commerce continue to grow more complicated, increasing the need for well-qualified certified public accountants in the State and nationwide. At the same time, however, a declining percentage of students in accounting classes are pursuing certified public accountant (CPA) licenses. In part, this decline is due to the requirement of thirty additional semester hours of education, beyond the requirements of a bachelor's degree, to obtain a CPA license. The time and monetary costs of this additional education can be a serious obstacle for many students. Thus, the additional education requirement effectively blocks many potential candidates from obtaining CPA licenses, at a time when more qualified CPAs are needed.
The purpose of this Act is to generate more qualified CPAs by establishing alternative pathways to licensure that eliminate certain barriers for eligible applicants.
SECTION 2. Section 466-5, Hawaii Revised Statutes, is amended by amending subsections (a) through (d) to read as follows:
"(a) A license and a permit are required to practice public accountancy. The board may license and grant the designation of "certified public accountant" to any person who has met the following:
(1) Attained eighteen years of age;
(2) Possesses a history of competence, trustworthiness, and fair dealing;
(3) Educational requirements of this
section [or section 466-5.5];
(4) Experience requirements of subsection (d);
(5) Examination requirements of subsection (e); and
(6) Paid the appropriate fees and assessments.
(b) The educational requirement for a license shall include a baccalaureate degree conferred by a college or university recognized by the board and:
(1) Completion of not less than thirty
semester hours of study in addition to those semester hours required for a
baccalaureate degree[. The
baccalaureate degree and the thirty semester hours of additional study shall
include a minimum of eighteen semester hours of upper division or graduate
level accounting or auditing subjects.
The]; provided that the content of the additional qualifying
hours of study shall be determined by rules adopted by the board pursuant to
chapter 91; [or] and
(2) [If the applicant has a] A
minimum of eighteen semester hours of upper division or graduate level
accounting and auditing subjects[, the applicant may elect to replace the
thirty semester hours with an additional thirty months of professional
experience in a public accounting practice.
This experience shall not be credited toward the experience requirements
in subsection (d).]; provided that the content of the additional
qualifying hours of study shall be determined by rules adopted by the board
pursuant to chapter 91.
In lieu of paragraph (1), the applicant may demonstrate completion of twelve months of professional experience in the practice of public accounting, as determined by the board and pursuant to subsection (d); provided that this professional experience shall be in addition to any professional experience required for a license pursuant to this section.
(c) A person shall be exempt from the
requirements in subsection (b) [or section 466-5.5] if that person:
(1) Holds a current license as a public accountant under section 466-6; or
(2) Holds, and has continued to hold, a valid comparable certificate, registration, or license of certified public accountant of another state for a period of not less than ten years preceding the date of the person's application under this section, and has been in active practice of public accountancy in one or more states for a period of not less than five years preceding the date of the application.
(d) Each applicant shall present satisfactory
evidence in the form of a certified statement, from present or former
employer(s), that the applicant has [met one of the following
experience requirements for license:
(1) Completion of one thousand five
hundred chargeable hours in the performance of audits involving the application
of generally accepted accounting principles and auditing standards earned while
in public accounting practice; or
(2) Completion of] completed
two years of professional experience in public accountancy practice as defined
in section 466-3. Completion of
experience in private or government accounting or auditing work, deemed by the
board to be equivalent to professional experience in public accountancy
practice as defined in section 466-3, may be substituted for all or part
of the two years of professional experience in public accounting practice. The nature, variety, and depth of acceptable
private or government accounting or auditing experience shall be defined by the
board in its rules."
SECTION 3. Section 466-5.5, Hawaii Revised Statutes, is repealed.
["§466-5.5
Educational requirements for licensure effective December 31, 2000. Effective December 31, 2000, an applicant for
licensure shall have at least one-hundred-fifty semester hours of college
education. Within the one‑hundred‑fifty
semester hours, the applicant shall have:
(1) A baccalaureate or higher degree
conferred by a college or university acceptable to the board; and
(2) An accounting concentration or its
equivalent as specified in the rules of the board;
except
that applicants for licensure who have successfully completed the Uniform
Certified Public Accountant Examination before December 31, 2000, or held
conditional credit before December 31, 2000, and subsequently completed the
examination before the conditional credit expired, may continue to meet the
educational requirements of section 466-5(b)."]
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect upon its approval.
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INTRODUCED BY: |
_____________________________ |
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Report Title:
Board of Public Accountancy; Qualifications; Licensure; Certified Public Accountants
Description:
Clarifies the education and professional experience requirements for certified public accountant license applicants to establish alternative pathways to licensure.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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Date
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Status
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| Apr 11, 2025 | Act 014, on 04/10/2025 (Gov. Msg. No. 1114). |
| Apr 11, 2025 | Act 014, 04/10/2025 (Gov. Msg. No. 1114). |
| Mar 31, 2025 | Enrolled to Governor. |
| Mar 31, 2025 | Received from House (Hse. Com. No. 423). |
| Mar 31, 2025 | Passed Third Reading with none voting aye with reservations; none voting no (0) and Representative(s) Cochran, Lowen, Ward excused (3). Transmitted to Senate. |
| Mar 28, 2025 | Passed Second Reading; placed on the calendar for Third Reading with none voting aye with reservations; none voting no (0) and Representative(s) Cochran, Hussey, Muraoka, Ward excused (4). |
| Mar 28, 2025 | Reported from CPC (Stand. Com. Rep. No. 1715), recommending passage on Second Reading and placement on the calendar for Third Reading. |
| Mar 25, 2025 | The committee on CPC recommend that the measure be PASSED, UNAMENDED. The votes were as follows: 9 Ayes: Representative(s) Matayoshi, Chun, Ilagan, Iwamoto, Kong, Lowen, Marten, Tam, Pierick; Ayes with reservations: none; Noes: none; and 1 Excused: Representative(s) Ichiyama. |
| Mar 21, 2025 | Bill scheduled to be heard by CPC on Tuesday, 03-25-25 2:00PM in House conference room 329 VIA VIDEOCONFERENCE. |
| Mar 6, 2025 | Referred to CPC, referral sheet 19 |
| Mar 6, 2025 | Pass First Reading |
| Mar 4, 2025 | Received from Senate (Sen. Com. No. 295) in amended form (SD 1). |
| Mar 4, 2025 | Report adopted; Passed Third Reading, as amended (SD 1). Ayes, 25; Aye(s) with reservations: none . Noes, 0 (none). Excused, 0 (none). Transmitted to House. |
| Feb 27, 2025 | 48 Hrs. Notice 03-04-25. |
| Feb 27, 2025 | Report adopted; Passed Second Reading, as amended (SD 1). |
| Feb 27, 2025 | Reported from CPN (Stand. Com. Rep. No. 797) with recommendation of passage on Second Reading, as amended (SD 1) and placement on the calendar for Third Reading. |
| Feb 19, 2025 | The committee(s) on CPN recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in CPN were as follows: 4 Aye(s): Senator(s) Keohokalole, Fukunaga, McKelvey, Awa; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Richards. |
| Feb 14, 2025 | The committee(s) on CPN has scheduled a public hearing on 02-19-25 9:32AM; Conference Room 229 & Videoconference. |
| Jan 27, 2025 | Referred to CPN. |
| Jan 23, 2025 | Introduced and passed First Reading. |
| Jan 21, 2025 | Pending Introduction. |
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Date
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Description
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Location
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Votes
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| Mar 31, 2025 | Third Reading | House Floor |
Passed |
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| Mar 25, 2025 | The committee on CPC recommend that the measure be PASSED, UNAMENDED | House Standing Committee on Consumer Protection & Commerce |
Passed |
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| Mar 4, 2025 | Third Reading | Senate Floor |
Passed |
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| Feb 19, 2025 | The committee(s) on CPN recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Commerce and Consumer Protection |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
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Organization
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Position
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Date
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| Board of Public Accountancy | ** Support | |
| Chantal Mentzer Inc | *** Support | Mar 25, 2025 |
| Chantal Mentzer Inc. | ** Support | |
| Hawaii Association of Public Accountants | ** Support | |
| Hawaii Society of Certified Public Accountants | ** Support | |
| Hong Consulting, LLC | ** Support | |
| Taketa, Iwata, Hara & Associates, LLC | ** Support | |
| University of West Oahu | *** Support | Mar 25, 2025 |
STAND. COM. REP. NO. 1715
Honolulu, Hawaii
, 2025
RE: S.B. No. 1291
S.D. 1
Honorable Nadine K. Nakamura
Speaker, House of Representatives
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Madame:
Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 1291, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO CERTIFIED PUBLIC ACCOUNTANTS,"
begs leave to report as follows:
The purpose of this measure is to establish an alternative pathway to licensure for certified public accountant license applicants by permitting applicants to demonstrate completion of:
(1) No less than an additional thirty semester hours of study; or
(2) An additional twelve months of professional experience in the practice of public accountancy only.
Your Committee finds that there is an increasing need for well-qualified certified public accountants in the State and nationwide as business and commerce continue to grow more complicated. However, there is a declining percentage of students in accounting courses that pursue certified public accountant licenses. This is in part due to the extensive educational requirements beyond a bachelor's degree for licensure, which require further time and money and can serve as a barrier for many potential candidates for licensure. This measure opens an alternative pathway for a certified public accountant license by authorizing the completion of qualifying professional experience in the practice of accountancy in lieu of post-baccalaureate coursework.
As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1291, S.D. 1, and recommends that it pass Second Reading and be placed on the calendar for Third Reading.
Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,
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____________________________ SCOT Z. MATAYOSHI, Chair |
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STAND. COM. REP. NO. 797
Honolulu, Hawaii
RE: S.B. No. 1291
S.D. 1
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Sir:
Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 1291 entitled:
"A BILL FOR AN ACT RELATING TO CERTIFIED PUBLIC ACCOUNTANTS,"
begs leave to report as follows:
The purpose and intent of this measure is to generate more well-qualified certified public accountants (CPAs) by establishing alternative pathways to licensure that would eliminate certain barriers for eligible applicants.
Prior to the hearing on this measure, your Committee made available for public review a proposed S.D. 1, which amended this measure by clarifying the educational and professional experience requirements for CPA licensure.
Your Committee received testimony in support of this measure from the Hawaii Association of Public Accountants; Hong Consulting, LLC; Taketa, Iwata, Hara & Associates, LLC; and ten individuals.
Your Committee received comments on this measure from the Board of Public Accountancy.
Your Committee finds that there is a critical shortage of available CPAs in the State to prepare taxes and provide financial services for local businesses. Despite this growing demand, the percentage of students in accounting that choose to pursue a CPA license has declined over the years. This is in part due to the requirement that an additional thirty hours of education be completed, beyond the requirements for a bachelor's degree, which can be cost prohibitive for many candidates in the State. Your Committee further finds that experience gained from working in a public accounting firm is invaluable to those seeking their CPA licenses. This measure provides an alternative pathway to CPA licensure and encourages more people to pursue careers as CPAs by allowing an additional year of experience working in a CPA firm to be substituted for the existing educational requirement of thirty semester hours of post-baccalaureate education.
Your Committee has amended this measure by adopting the proposed S.D. 1 and further amending the measure by:
(1) Clarifying the baccalaureate educational requirement shall include at least eighteen semester hours of upper division or graduate level accounting or auditing subjects as determined by the Board of Public Accountancy; and
(2) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.
As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1291, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1291, S.D. 1, and be placed on the calendar for Third Reading.
Respectfully submitted on behalf of the members of the Committee on Commerce and Consumer Protection,
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________________________________ JARRETT KEOHOKALOLE, Chair |
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Date
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Testimony PDF
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| Mar 25, 2025 | SB1291_SD1_TESTIMONY_CPC_03-25-25_.PDF |
| Feb 18, 2025 | SB1291_TESTIMONY_CPN_02-19-25_.PDF |
Discussed in Hearing
2MIN
House Standing Committee on Consumer Protection & Commerce
13MIN
Senate Standing Committee on Commerce and Consumer Protection
Bill Author
Bill Co-Author(s):