Representative Les Warren

Insurance & Commerce (House) — March 19, 2025 (1:42:39)

at the altar. Please introduce yourself and who you're with, and then you can

Insurance & Commerce (House) — March 19, 2025 (1:37:59)

We have a motion do pass. All in favor say aye. Aye. Any opposed, say no. Congratulations, you have passed your bill. Thank you, Mr. Chairman. Thank

Insurance & Commerce (House) — March 19, 2025 (1:37:54)

for your bill? I think this is long overdue, and I would make a motion do pass.

Insurance & Commerce (House) — March 19, 2025 (1:36:53)

And if I'm wrong, you can correct me on that. And that was done in the early 2000s. They required an additional year of college in order to be qualified to sit for a CPA exam. So this is taking it back to, and what they've seen is they feel like now they can get the CPA degree in four years, let them work, and then sit for the exam and get just as good a CPA as they have right now with 150 hours.

Insurance & Commerce (House) — March 19, 2025 (1:36:30)

that they stay in college an extra year. It is instead of like a regular four-year college degree, they have to stay for an additional year for an additional 30 hours in accounting. So basically it's another year of college expense in order to be qualified to sit for the CPA exam.

Insurance & Commerce (House) — March 19, 2025 (1:35:15)

Okay. I got a couple of guys that could

Insurance & Commerce (House) — March 19, 2025 (1:35:25)

the answers to the question, but I think I'll take a shot at it. Okay. Well, if you'd rather be him, that's

Insurance & Commerce (House) — March 19, 2025 (1:34:43)

and I would be glad to take any questions.

Insurance & Commerce (House) — March 19, 2025 (1:35:08)

a gentleman that can answer that question. I would, Rodney, would you mind coming to the, or?

Insurance & Commerce (House) — March 19, 2025 (1:34:11)

And secondly, substantial equivalency and mobility are necessary for CPAs to work across state lines with one CPA license. So basically, this bill updates the statutes for CPAs, allows them to get competitive again, and ease some of the cost. The Arkansas Society of CPAs and the Arkansas State Board of Public Accountancy are both in support of this,

Insurance & Commerce (House) — March 19, 2025 (1:33:38)

And lastly, for substantial equivalency, this bill also moves the substantial equivalency out of the accountancy law and into the board rule so they can adopt future changes to the standard Uniform Accountancy Act model language the industry periodically updates. It makes it easier for the ASBPA to adopt future changes to the Uniform Accountancy Act model language in board rules as it relates to substantial equivalency and mobility.

Insurance & Commerce (House) — March 19, 2025 (1:32:58)

The industry changed and required the current 150 hours prior to sitting for the exam, so students have gradually chosen alternative career paths that don't require a fifth year of college. This bill would allow them to graduate and go to work immediately and gain experience prior to sitting for the exam rather than the 150 college hours. The Arkansas Society of CPAs fully supports the Arkansas Society of CPAs' decision to offer an additional pathway to licensure.

Insurance & Commerce (House) — March 19, 2025 (1:32:23)

which will ease the cost burden for sitting for the uniform CPA exam with respect to experience. The Arkansas State Board of Public Accounting has proposed a plan that would provide an alternative pathway for licensure. This pathway really goes back to the way all CPAs were licensed prior to the early 2000s. Get your degree, go to work, sit and pass the exam, and then have one year of experience prior to being licensed.

Insurance & Commerce (House) — March 19, 2025 (1:31:52)

and the Arkansas Society of CPAs to craft a bill to address this problem. So that's what this bill is all about, and it's going to address several issues in one bill. Number one is exam fees. They've gotten pretty steep for people sitting for the CPA exam. So the Arkansas State Board of Public Accounting has a pipeline initiative to waive or assume some of the fees for qualifying Arkansas exam candidates,

Insurance & Commerce (House) — March 19, 2025 (1:31:21)

Our own Office of Personnel Management mentioned recently that accountants and CPAs are positions currently difficult to fill with qualified applicants. The American Institute of CPAs estimates that 75% of the public accounting CPAs will retire within the next 15 years. Like many critical positions in our labor market, there's a pipeline problem. We have worked with the Arkansas State Board of Public Accounting, Labor and Licensing,

Insurance & Commerce (House) — March 19, 2025 (1:31:04)

you, sir. You may proceed. SB 432 is basically a catch-all for CPAs in the state of Arkansas. There's a growing shortage of accountants and CPAs in Arkansas and the rest of the country.

Insurance & Commerce (House) — March 19, 2025 (1:30:57)

that you are presenting, sir. Thank you, Mr. Chairman. Les Warren, District 84, SB 432. Thank

Insurance & Commerce (House) — March 19, 2025 (1:26:48)

they could have really gotten into some tough water. Okay, I just needed to know that. Thank you. Thank

Insurance & Commerce (House) — March 19, 2025 (1:26:21)

following up on what Representative Eve said, and being in the industry, I know that a lot happened last year. And I've got realtors beyond 72 who are still very active in the business. If they had not had to go through education, whether at their firm or whatever access they had to continuing ed,

Insurance & Commerce (House) — March 19, 2025 (1:26:16)

and so I agreed to that as well. Okay. I would just say my concern