At the time this article was written (early March), the 2019 Legislature was more than halfway through their 105-day session. The number of bills introduced during legislative sessions is overwhelming. Representatives and staff review, write, and hear hundreds of proposals within a limited time frame.

While we can only attempt to predict what issues will be considered outside of each party’s stated priorities, we can get a good idea of what’s in the pipeline by observing growing trends across the country. For example, human resource issues such as paid family and medical leave have become a popular initiative in many states in response to federal inaction.

One issue in particular that has quickly gained traction and directly affects the CPA profession is deregulation of occupations and professions. The intent of these proposals is to reduce or eliminate regulatory requirements and oversight for occupational licensing and certifications.

The growing number of occupations that require a license or certification has raised concerns that unnecessary barriers to entry for occupations are being created, thus prohibiting many from finding jobs. Proponents argue that individuals spending hundreds of hours in the classroom and gaining practical work experience face overly burdensome requirements such as registration, exams, and fees. If an individual moves out of the state where he is licensed or certified, he is often required to complete similar training and requirements all over again.

Since 2015, more than half of state legislatures have introduced proposals to eliminate or significantly change licensing regimes and requirements that have wide-reaching effects. For example, legislation introduced in West Virginia would allow unlicensed or uncertified individuals to provide certain services as long as the client signs a waiver acknowledging awareness of the individual’s lack of credentials.

Because these bills are written so broadly, learned professions tasked with consumer protection are often included. There will be harmful, unintended consequences for the CPA profession in particular if this legislation becomes widespread. The continuing evolution of the CPA profession is multifaceted and spans decades.

Nationwide efforts to allow interstate practices such as individual and firm mobility and CPE reciprocity significantly reduce the red tape and frustrating situations that many face when doing business or moving to another state. If these change, compliance across state lines will become more difficult and set the profession back decades.

It is also important to consider what potential harm might be inflicted on the public if an unlicensed individual is hired to perform work that CPAs spend years learning and practicing. Another Enron, WorldCom, or Lehman Brothers? What disciplinary actions will an unlicensed individual face to ensure he is held accountable and prevents further harm?

Washington is certainly not immune to this issue. The WSCPA is always monitoring proposals to ensure that the pioneering measures to create mobility across state lines aren’t undone and continue to lead the way to more innovative solutions. We are also working to inform legislators of the dangers of including CPAs in these proposals and asking for careful consideration.

Thank you to everyone who attended Hill Day and discussed the importance of the CPA license with legislators. While we cannot speak for others, appropriate oversight of the profession is necessary to shield the public from potential bad actors and to continue advancing the profession.

Ashley Kittrell is the WSCPA Government Relations Coordinator. You can contact her at akittrell@wscpa.org or 425.586.1150.

This article appears in the spring 2019 issue of the WashingtonCPA Magazine. Read more here.