ArizonaSB 1181Fifty-seventh Legislature - Second Regular SessionSenateWALLET

certified public accountants; certification; alternative

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Bill Overview

Analyzed Economic Effects

10 provisions identified: 6 benefits, 1 costs, 3 mixed.

More ways to become an Arizona CPA

First-time applicants can qualify through a bachelor’s degree and two years of verified accounting work; a bachelor’s degree, 30 extra semester hours, and one year of work; or a postbaccalaureate degree and one year of work. One year of work equals 2,000 hours, and paid or unpaid work can count. Applicants must pass the exam and meet age and conduct rules. The Board sets course-hour requirements, including for some people seeking to restore a certificate when an order requires education.

Out-of-state accountants gain Arizona licenses

Some out-of-state CPAs can qualify for Arizona certification through new work and education paths. They can qualify with three years working as a CPA and either a postbaccalaureate degree or a bachelor’s degree plus 30 extra semester hours; five of the past 10 years working as a CPA plus a bachelor’s degree; or 10 of the past 15 years working as a CPA. Applicants must hold an out-of-state CPA credential, meet exam rules, and have no prior Arizona certificate that expired, was relinquished, or was revoked. The existing route for applicants from substantially equivalent jurisdictions remains available.

Out-of-state CPAs can practice in Arizona

Some nonresident CPAs can practice in Arizona without an Arizona certificate through the limited practice privilege. A person can qualify by meeting other Arizona qualifications or by holding an active CPA credential from any jurisdiction on December 31, 2024. The person must have a principal place of business outside Arizona, have no Arizona office or claim to one, and meet the law’s other credential-history limits.

Stricter discipline for Arizona CPAs

Beginning January 1, 2027, Arizona can discipline a CPA for certain out-of-state or foreign discipline or refusal to register, except when the refusal is for unpaid fees. The Board can require repayment of investigation and case costs, including attorney fees. A CPA cannot cancel a credential during an investigation or disciplinary case, and a canceled credential cannot be used to claim the CPA title unless the person qualifies for limited reciprocity. The Board can accept a credential relinquishment during a case, but the person then gives up the right to practice; people claiming limited reciprocity must prove they qualify in Board investigations and disciplinary cases.

Stronger privacy for accounting clients

Beginning January 1, 2027, accountancy registrants practicing in Arizona must protect client records and information received through confidential work. They cannot share that information voluntarily. The state and its agencies can still subpoena and use it in proceedings.

More public oversight of accounting firms

The Accountancy Board’s public-protection role covers accounting firms as well as individual CPAs. The Board can investigate possible violations after a public complaint or on its own. Beginning January 1, 2027, continuing education audit records are no longer covered by the investigation-confidentiality exception to public access; other protections, including client privacy, remain.

Out-of-state firms can practice in Arizona

Accounting firms based outside Arizona can use the state’s limited practice privilege if they meet the law’s requirements. These include having a principal place of business outside Arizona, being in good standing at home, and having no Arizona office or claim to one. The firm must practice under the direct supervision of an eligible individual.

New discipline disclosures for accounting firms

A CPA firm applying for or holding Arizona registration must list the places where it has faced discipline. The exception covers discipline for failing to register a license or permit, not for failing to renew a registration.

CPA education rules and suspensions

The Board can require no more than 80 hours of basic continuing education in each two-year registration period. Beginning January 1, 2027, a CPA suspended for missing education requirements must meet those requirements and other registration rules within six months. Otherwise, the certificate expires.

CPA fees and registration suspensions

Firms and people with retired status pay a prorated registration fee when registering for less than two years. Beginning January 1, 2027, a CPA who misses the registration deadline and required fee is automatically suspended. Paying and completing registration vacates the suspension; failing to register within three months after suspension causes the certificate or registration to expire.

Sponsors & Cosponsors

Sponsor

J.D. Mesnard
Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 98 • No: 9

House vote • 3/31/2026

Third Reading: Passed

Yes: 47 • No: 9

House vote • 3/16/2026

Rules: C&P

Yes: 7 • No: 0

House vote • 3/10/2026

Commerce: DP

Yes: 10 • No: 0

Senate vote • 2/26/2026

Third Reading: Passed

Yes: 27 • No: 0

Senate vote • 2/4/2026

Regulatory Affairs and Government Efficiency: DP