Texas 2025 - 89th Regular

Texas House Bill HB1764

Filed
1/7/25  
Out of Senate Committee
 
Voted on by Senate
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to the certification and regulation of certain out-of-state certified public accountants.

Impact

The implications of HB 1764 are significant for both the accounting profession and for consumers of CPA services in Texas. By permitting out-of-state CPAs to practice without obtaining additional state-specific certifications, the bill encourages greater participation in the state's accounting market, potentially enhancing the availability of services. This change is anticipated to benefit businesses and individuals in Texas looking for accounting expertise, as it widens the pool of professionals available to them. However, the bill does impose requirements such as verification of education and experience, ensuring that standards of professional competence are maintained.

Summary

House Bill 1764 seeks to amend the existing regulations surrounding the certification and licensing of certified public accountants (CPAs) in Texas, specifically targeting those from out of state. This legislation aims to streamline the process for out-of-state CPAs to practice in Texas by allowing individuals who meet specific criteria, such as holding a valid license from another state and completing the relevant education and professional experience, to exercise the same privileges as in-state CPAs without needing to obtain a Texas certificate or license. The proposed changes are designed to facilitate the mobility of accounting professionals across state lines, addressing a growing demand for CPA services in Texas.

Sentiment

Overall, the sentiment surrounding HB 1764 appears to be positive among proponents who emphasize its potential to attract qualified professionals to Texas and simplify the regulatory hurdles faced by out-of-state CPAs. Supporters argue that this bill will ultimately benefit the state's economy by fostering a more dynamic and competitive accounting market. However, some concerns have been raised regarding the adequacy of the qualifications required for out-of-state practitioners, as critics fear this could lead to a dilution of standards and oversight in the profession.

Contention

Notable points of contention in discussions around HB 1764 include the balancing act between facilitating greater access to accounting services and ensuring that the integrity of the CPA designation is upheld in Texas. Critics express that while creating a welcoming environment for out-of-state CPAs is beneficial, it is crucial to ensure rigorous standards are not compromised. The discussions have highlighted the need for ongoing professional education requirements to be met consistently, which is something the bill addresses by mandating continuing education for practitioners wishing to exercise these privileges in the state.

Texas Constitutional Statutes Affected

Occupations Code

  • Chapter 901. Accountants
    • Section: 462
    • Section: 462
    • Section: 259
    • Section: 462
    • Section: 259
    • Section: 462

Companion Bills

TX SB522

Identical Relating to the certification and regulation of certain out-of-state certified public accountants.

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