Senate File 477 - Introduced SENATE FILE 477 BY COMMITTEE ON STATE GOVERNMENT (SUCCESSOR TO SSB 1141) (COMPANION TO LSB 1872HV BY COMMITTEE ON STATE GOVERNMENT) A BILL FOR An Act relating to qualifications for a certificate as a 1 certified public accountant and including effective date 2 provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1872SV (2) 91 nls/ko
S.F. 477 Section 1. Section 542.5, subsection 7, Code 2025, is 1 amended by striking the subsection and inserting in lieu 2 thereof the following: 3 7. a. An applicant for initial issuance of a certificate 4 shall meet all of the requirements of either subparagraph (1) 5 or subparagraph (2): 6 (1) The applicant meets all of the following: 7 (a) The applicant has completed at least one hundred fifty 8 semester hours, or the trimester or quarter equivalent of one 9 hundred fifty semester hours, of college education. 10 (b) The applicant has a degree. 11 (c) The applicant has no less than one year of experience. 12 (2) The applicant meets all of the following: 13 (a) The applicant has completed at least one hundred twenty 14 semester hours, or the trimester or quarter equivalent of one 15 hundred twenty semester hours, of college education. 16 (b) The applicant has a degree. 17 (c) The applicant has no less than two years of experience. 18 b. A degree required under paragraph a must be at least 19 a baccalaureate degree and be conferred by a college or 20 university recognized by the board, and the degree program must 21 include a concentration in accounting or another area of study 22 that the board determines to be substantially equivalent. 23 c. Experience required under paragraph a must include 24 providing any type of service or advice involving the use of 25 accounting, attest, compilation, management advisory, financial 26 advisory, tax, or consulting, as verified by an applicant, that 27 meets the requirement prescribed by the board by rule. The 28 experience may be in the government, industry, academia, or 29 public sector. 30 Sec. 2. Section 542.5, subsection 12, Code 2025, is amended 31 by striking the subsection. 32 Sec. 3. Section 542.5, subsection 13, Code 2025, is amended 33 to read as follows: 34 13. A person holding a certificate as a certified public 35 -1- LSB 1872SV (2) 91 nls/ko 1/ 3
S.F. 477 accountant issued by the state prior to July 1, 2002 2025 , is 1 deemed to have met the requirements of this section . 2 Sec. 4. Section 542.19, subsection 1, paragraph c, 3 subparagraph (2), Code 2025, is amended to read as follows: 4 (2) The applicant has at least four years of experience 5 within the ten years immediately preceding the application 6 which occurred after passing the examination upon which the 7 applicants certificate or license was based and which in the 8 boards opinion is substantially equivalent to that required by 9 section 542.5, subsection 12 7 ; and, 10 Sec. 5. Section 542.19, subsection 3, paragraph c, 11 subparagraph (2), Code 2025, is amended to read as follows: 12 (2) The applicant satisfies an experience requirement, 13 substantially equivalent to the requirement set out in 14 section 542.5, subsection 12 7 , in the jurisdiction which 15 issued the foreign designation or has completed four years of 16 professional experience in this state; or meets equivalent 17 requirements prescribed by the board by rule, within the ten 18 years immediately preceding the application. 19 Sec. 6. Section 542.20, subsection 1, Code 2025, is amended 20 to read as follows: 21 1. This section authorizes a person or firm whose principal 22 place of business is not in this state to practice public 23 accounting in Iowa in person, or by telephone, mail, or 24 electronic means without licensure under this chapter , paying 25 a fee, or providing notice to the board under the conditions 26 described in this section . Such a person or firm must hold 27 a valid, unexpired license in good standing in the state of 28 its the persons or firms principal place of business that is 29 substantially equivalent to a comparable license issued in Iowa 30 in conformance with subsections 5 and 6 , and such a person or 31 firm must be licensed to lawfully perform in its the persons 32 or firms principal place of business all public accounting 33 services offered or rendered under a practice privilege in 34 Iowa. 35 -2- LSB 1872SV (2) 91 nls/ko 2/ 3
S.F. 477 Sec. 7. Section 542.20, subsection 6, paragraph a, Code 1 2025, is amended to read as follows: 2 a. The individual must meet the criteria for substantial 3 equivalency reciprocity under section 542.19, subsection 1 , 4 paragraph a , b , or c set forth in subsections 7 and 8 . 5 Sec. 8. Section 542.20, subsection 7, Code 2025, is amended 6 by adding the following new paragraph: 7 NEW PARAGRAPH . e. Complies with the requirements of this 8 chapter, and all rules adopted by the board. 9 Sec. 9. EFFECTIVE DATE. This Act takes effect July 1, 2026. 10 EXPLANATION 11 The inclusion of this explanation does not constitute agreement with 12 the explanations substance by the members of the general assembly. 13 This bill relates to the qualifications for a certificate 14 as a certified public accountant and the practice of public 15 accounting, and includes effective date provisions. 16 Under the bill, an applicant for initial issuance of a 17 certificate as a certified public accountant (CPA) shall have 18 completed at least 150 semester hours of college education, a 19 degree, and no less than one year of experience, or shall have 20 completed at least 120 semester hours of college education, a 21 degree, and no less than two years of experience. A degree 22 required by the bill must be at least a baccalaureate degree 23 and be conferred by a college or university recognized by the 24 board, and the degree program must include a concentration in 25 accounting or another area of study that the board determines 26 to be substantially equivalent. The experience required 27 by the bill shall include providing any type of service or 28 advice involving the use of accounting, attest, compilation, 29 management advisory, financial advisory, tax, or consulting, 30 as verified by an applicant, that meets the requirements 31 prescribed by the board by rule. The experience may be in the 32 government, industry, academia, or public sector. 33 -3- LSB 1872SV (2) 91 nls/ko 3/ 3