The business community relies on licensing to maintain service quality and avoid liability and reputational damage, and rigorous licensing standards protect the public. These standards can be met while affording accountants workforce mobility.
Although universal licensure bills are meant as a blanketed approach to remove barriers to entering a profession, not all licensing standards are the same, and an unsafe and uneven climate could be created if current standards are removed or altered. Currently, 22 states have implemented some form of universal licensing recognition for out-of-state licenses.
“The regulatory oversight over an engineer or an architect has different public health safety and welfare implications to the public, and we want to make sure lawmakers keep this in mind as they look at licensing reform,” said Marta Zaniewski, vice president of state regulatory and legislative affairs at the AICPA.
Policymakers and the public need additional education on the importance of protecting rigorous licensing for high-impact professions, especially accounting.
Advocacy for rigorous standards
The Alliance for Responsible Professional Licensing (ARPL) is a strong advocate for rigorous licensing standards that protect the public while providing workforce mobility — being able to practice from state to state.
In 2023, the ARPL released an explainer video series on YouTube and social media covering essential components for interstate practice, unintended consequences of universal licensing bills and other licensing-related topics. The ARPL also partnered with the Benenson Strategy Group (BSG) on opinion research revealing strong support for licensure from the business community — 92% of business decision-makers surveyed said that requiring a license is important for professionals with high public impact, which includes CPAs.
The current regulatory structure provides accountability should something go wrong, said Zaniewski, who co-authored, along with The National Council of Architectural Registration Boards’ (NCARB) CEO Mike Armstrong, the op-ed A False Solution for Our Workforce Challenges.
“Wholesale general solutions” are not the solution to current workforce challenges, she added.
Additionally, Zaniewski joined the Wharton Business Daily podcast to explain the importance of upholding rigorous licensing standards for high-impact professions amidst workforce development challenges.
Keeping licensure integrity relies on advocacy
Current licensing standards for technical professions, such as accounting and finance, provide assurance that these professionals are qualified and competent. Keeping this integrity relies on advocacy efforts that focus on why the requirements are so important.
“We want to focus on educating legislators on why [standards] are different for these professions,” said Zaniewski. “There is this environment in the states … where there need to be fewer barriers into workforce and licensure. And we agree with that, but there is a certain level of rigor that needs to be met for certain professions … including those that keep the integrity of the financial systems of this country.”
But in addition to the critical work of the ARPL and the AICPA Advocacy Team, Zaniewski wants to engage state partners, including CPAs and licensing advocates, who can share their perspectives and help combat legislation that weakens licensing board authority.
For the latest news and research on state licensures and advocacy efforts, lean on the AICPA Advocacy Team.