Relating to the practice of accounting in this state by certain certified public accountants licensed in other states.
The bill is designed to streamline the process for out-of-state accountants to practice in Texas, potentially leading to an increase in the number of qualified accountants operating within the state. By easing the licensure requirements, it is expected that Texas will attract a broader pool of talented accountants which could improve competition and service delivery in the accounting sector. However, this change might also raise concerns related to regulation oversight and the standards of practice upheld by out-of-state CPAs.
House Bill 1764 proposes amendments to the Occupations Code in Texas, specifically addressing the practice of accounting by certified public accountants (CPAs) who are licensed in other states. The bill permits individuals holding a CPA certificate from another state to exercise the same privileges as in-state license holders without needing to obtain a Texas-specific certificate or license, provided their state’s licensure requirements are equivalent or greater than Texas's. This law aims to facilitate easier mobility for accountants between states and enhance the availability of accounting services in Texas.
The sentiment around HB 1764 has been generally supportive among accounting professionals and advocacy groups that recognize the need for flexibility in licensing, especially for industries facing a labor shortage. However, there are reservations expressed by some legislators and local professional organizations about the implications for state oversight and whether this could dilute the standards of practice expected of CPAs in Texas.
Notable points of contention arise from differing perspectives on regulating the accounting profession. Supporters argue that this bill modernizes the practice by facilitating a more inclusive approach to accounting service provision. In contrast, those opposed may fear it could undermine local standards, as it allows individuals from states with potentially laxer regulations to practice in Texas—raising questions about accountability and the uniformity of service quality. The enactment of this bill is set to take effect on September 1, 2025.