The Minnesota Legislature recently approved the State and Local Government and Elections budget agreement, which includes a key policy championed by Sen. Jordan Rasmusson (R-Fergus Falls) to create an alternative pathway to certified public accountant (CPA) licensure. Senate File 1536 reduces the minimum years of college from five to four to become a CPA. The bill is supported by State Auditor Julie Blaha and the Minnesota Society of CPAs (MNCPA).

“This policy is about removing unnecessary barriers to the accounting profession while maintaining high standards,” Rasmusson said. “Minnesota’s current 150 credit hour requirement has not led to better outcomes. Instead, it has added costs that discourage students from becoming CPAs.”

The legislation introduces two new routes to CPA licensure: a bachelor’s degree with two years of work experience, or a master’s degree with one year of experience. The CPA exam remains a requirement. The existing 150-hour pathway will also remain available through June 30, 2030, providing a five-year transition period. Rasmusson’s efforts to rethink outdated CPA licensing rules drew national attention with a feature in the Wall Street Journal.

“I’m incredibly proud of the MNCPA board members and staff leadership who took a bold risk to launch this process,” Boz Bostrom, CPA, accounting professor at the College of Saint Benedict and Saint John’s University, and a former MNCPA board chair, said. “I’m also grateful for the engagement from other states and the national organizations that helped move this forward on a much broader scale, as well as all the supportive messages I received along the way. There’s still more work ahead, but this is a major win. Citizens, businesses, nonprofits and government agencies will soon have greater access to the CPA support they need. And, so importantly to me, students across the country will have a more affordable, accessible path to earning the CPA license!”

Before 2006, Minnesota required 120 credit hours, approximately four years of college, two years of work experience, and successful completion of the CPA exam. In 2006, the requirement increased to 150 credit hours, which is roughly equivalent to five years of college, along with one year of professional experience.

The legislation was recently signed into law by Gov. Tim Walz as part of the State and Local Government and Elections budget.