The fiscal impact of SB 262, as noted in the Legislative Budget Board’s fiscal note, is expected to be minimal. The bill does not impose any significant financial burden on the state, as any costs associated with implementing the new eligibility requirements for CPA certification are anticipated to be absorbed within existing resources. The Texas Board of Public Accountancy, which is responsible for overseeing CPA licensure, operates as a self-directed, semi-independent agency. This means that it is required to fund its operations independently and is prohibited from imposing costs on the General Revenue Fund. As such, the bill does not affect the state’s overall budgeting process.

Similarly, no significant fiscal impact is expected at the local government level. Since the Board of Public Accountancy is independently funded and operates outside the traditional state appropriations process, local entities will not bear any financial responsibility related to the implementation of the bill.

SB 262 represents a positive step toward reducing regulatory barriers in the accounting profession by allowing an alternative pathway to CPA certification. By permitting candidates with a baccalaureate degree and two years of work experience to qualify for licensure—rather than requiring the traditional 150-hour coursework requirement—the bill lowers an unnecessary barrier that has limited entry into the profession without clear evidence of improving competency. This change is expected to increase the supply of CPAs, addressing workforce shortages while maintaining professional integrity through the work experience requirement.

Furthermore, the bill strengthens licensing standards by clarifying that Texas will only recognize fully completed CPA exams from other states, rather than allowing partial exam credit reciprocity. This ensures consistency in licensure while still facilitating mobility for qualified CPAs. Importantly, the Texas State Board of Public Accountancy remains in control of rulemaking for these requirements, allowing for continued oversight.

• HB 1757 (Same As)