<a id="pl.1.3"></a><var>1.3</var>Board of Accountancy;amending Minnesota Statutes 2006, sections 13.411, by <br/>
<a id="pl.1.4"></a><var>1.4</var>adding a subdivision; 326A.01, subdivisions 2, 12, 17, by adding a subdivision; <br/>
<a id="pl.1.5"></a><var>1.5</var>326A.02, subdivisions 1, 3, 4, 5, 6, by adding a subdivision; 326A.03; 326A.04; <br/>
<a id="pl.1.6"></a><var>1.6</var>326A.05, subdivisions 1, 2, 3, 4, 5; 326A.06; 326A.07; 326A.08, subdivisions <br/>
<a id="pl.1.7"></a><var>1.7</var>2, 4, 5, 6, 7, 8, 9; 326A.10; 326A.12; 326A.13; 326A.14; repealing Minnesota <br/>
<a id="pl.1.8"></a><var>1.8</var>Statutes 2006, section 326A.05, subdivision 9.<br/>
<a id="pl.1.9"></a><var>1.9</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.0.1.0"></a><a id="pl.1.10"></a><var>1.10</var>    Section 1. Minnesota Statutes 2006, section 13.411, is amended by adding a <br/>
<a id="pl.1.11"></a><var>1.11</var>subdivision to read:<br/>
<a id="pl.1.12"></a><var>1.12</var>    Subd. 9. <b>Board of Accountancy.</b> Data relating to disciplinary proceedings involving <br/>
<a id="pl.1.13"></a><var>1.13</var>licensees of the Board of Accountancy are classified under section 326A.08, subdivision 2.<br/>
<br/>
<a id="bill.0.2.0"></a><a id="pl.1.14"></a><var>1.14</var>    Sec. 2. Minnesota Statutes 2006, section 326A.01, subdivision 2, is amended to read:<br/>
<a id="pl.1.15"></a><var>1.15</var>    Subd. 2. <b>Attest.</b> "Attest" means to provide the following financial statement <br/>
<a id="pl.1.16"></a><var>1.16</var>services:<br/>
<a id="pl.1.17"></a><var>1.17</var>(1) an audit or other engagement performed in accordance with the Statements on <br/>
<a id="pl.1.18"></a><var>1.18</var>Auditing Standards (SAS);<br/>
<a id="pl.1.19"></a><var>1.19</var>(2) a review of a financial statement performed in accordance with the Statements on <br/>
<a id="pl.1.20"></a><var>1.20</var>Standards for Accounting and Review Services (SSARS); and<br/>
<a id="pl.1.21"></a><var>1.21</var>(3) an examination of prospective financial information performed in accordance <br/>
<a id="pl.1.22"></a><var>1.22</var>with the Statements on Standards for Attestation Engagements (SSAE).; and<br/>
<a id="pl.1.23"></a><var>1.23</var>(4) any engagement performed in accordance with auditing and related standards of <br/>
<a id="pl.1.24"></a><var>1.24</var>the Public Company Accounting Oversight Board.<br/>
<br/>
<a id="bill.0.3.0"></a><a id="pl.2.1"></a><var>2.1</var>    Sec. 3. Minnesota Statutes 2006, section 326A.01, subdivision 12, is amended to read:<br/>
<a id="pl.2.2"></a><var>2.2</var>    Subd. 12. <b>Peer review.</b> "Peer review" means a an independent study, appraisal, or <br/>
<a id="pl.2.3"></a><var>2.3</var>review of one or more aspects of the professional work of a certificate holder or CPA firm <br/>
<a id="pl.2.4"></a><var>2.4</var>licensee that performs issues attest or compilation services reports, or the professional <br/>
<a id="pl.2.5"></a><var>2.5</var>work of a person registered under section 
         <statute_ref>326A.06, paragraph (b)</statute_ref>, by a person or persons <br/>
<a id="pl.2.6"></a><var>2.6</var>who hold certificates and who are not affiliated with the certificate holder, CPA firm, or <br/>
<a id="pl.2.7"></a><var>2.7</var>person being reviewed persons who are not affiliated with the licensee being reviewed. <br/>
<br/>
<a id="bill.0.4.0"></a><a id="pl.2.8"></a><var>2.8</var>    Sec. 4. Minnesota Statutes 2006, section 326A.01, is amended by adding a subdivision <br/>
<a id="pl.2.9"></a><var>2.9</var>to read:<br/>
<a id="pl.2.10"></a><var>2.10</var>    Subd. 13a. <b>Principal place of business.</b> "Principal place of business" means the <br/>
<a id="pl.2.11"></a><var>2.11</var>office location designated by the licensee for purposes of substantial equivalency and <br/>
<a id="pl.2.12"></a><var>2.12</var>reciprocity in this state and in other states.<br/>
<br/>
<a id="bill.0.5.0"></a><a id="pl.2.13"></a><var>2.13</var>    Sec. 5. Minnesota Statutes 2006, section 326A.01, subdivision 17, is amended to read:<br/>
<a id="pl.2.14"></a><var>2.14</var>    Subd. 17. <b>Substantial equivalency.</b> "Substantial equivalency" is a determination <br/>
<a id="pl.2.15"></a><var>2.15</var>under section 
<statute_ref>326A.14</statute_ref> by the Board of Accountancy or its designee that the education, <br/>
<a id="pl.2.16"></a><var>2.16</var>examination, and experience requirements contained in the statutes and administrative <br/>
<a id="pl.2.17"></a><var>2.17</var>rules of another jurisdiction are comparable to, or exceed the education requirements <br/>
<a id="pl.2.18"></a><var>2.18</var>in section 326A.03, subdivisions 3 and 6, paragraph (a), examination` requirements in <br/>
<a id="pl.2.19"></a><var>2.19</var>section 326A.03, subdivision 4, paragraph (a), and experience requirements contained in <br/>
<a id="pl.2.20"></a><var>2.20</var>this chapter section 326A.03, subdivision 6, paragraph (b), or that an individual CPA's <br/>
<a id="pl.2.21"></a><var>2.21</var>education, examination, and experience qualifications are comparable to or exceed <br/>
<a id="pl.2.22"></a><var>2.22</var>the education, examination, and experience requirements contained in this chapter <br/>
<a id="pl.2.23"></a><var>2.23</var>subdivision. For purposes of ascertaining substantial equivalency under the provisions of <br/>
<a id="pl.2.24"></a><var>2.24</var>this chapter, the board shall take into account the qualifications of the individual without <br/>
<a id="pl.2.25"></a><var>2.25</var>regard to the sequence in which experience, education, or examination were attained.<br/>
<br/>
<a id="bill.0.6.0"></a><a id="pl.2.26"></a><var>2.26</var>    Sec. 6. Minnesota Statutes 2006, section 326A.02, subdivision 1, is amended to read:<br/>
<a id="pl.2.27"></a><var>2.27</var>    Subdivision 1. <b>Board.</b> A Board of Accountancy is created to carry out the purposes <br/>
<a id="pl.2.28"></a><var>2.28</var>and enforce the provisions of this chapter. It consists of nine citizens of this state appointed <br/>
<a id="pl.2.29"></a><var>2.29</var>by the governor. Two must be public members as defined by section 
         <statute_ref>214.02</statute_ref>, and seven <br/>
<a id="pl.2.30"></a><var>2.30</var>must be certified public accountants under the provisions of this chapter. Effective <br/>
<a id="pl.2.31"></a><var>2.31</var>January 1, 2003, no fewer than five of the certified public accountants must be owners or <br/>
<a id="pl.2.32"></a><var>2.32</var>employees of a CPA firm that holds a current permit and provides professional services at <br/>
<a id="pl.2.33"></a><var>2.33</var>the time of appointment and reappointment. At least No fewer than two board members, <br/>
<a id="pl.3.1"></a><var>3.1</var>who may be any of the seven certified public accountants, at the time of appointment and <br/>
<a id="pl.3.2"></a><var>3.2</var>reappointment must be owners or employees of a CPA firm that: <br/>
<a id="pl.3.3"></a><var>3.3</var>(1) holds a current permit;<br/>
<a id="pl.3.4"></a><var>3.4</var>(2) provides professional services; and<br/>
<a id="pl.3.5"></a><var>3.5</var>(3) consists of ten or fewer certified public accountants.<br/>
<br/>
<a id="bill.0.7.0"></a><a id="pl.3.6"></a><var>3.6</var>    Sec. 7. Minnesota Statutes 2006, section 326A.02, subdivision 3, is amended to read:<br/>
<a id="pl.3.7"></a><var>3.7</var>    Subd. 3. <b>Officers; proceedings.</b> The board shall elect one of its number as chair, <br/>
<a id="pl.3.8"></a><var>3.8</var>another as vice-chair, and another as secretary and treasurer. The officers shall hold their <br/>
<a id="pl.3.9"></a><var>3.9</var>respective offices for a term of one year and until their successors are elected. The <br/>
<a id="pl.3.10"></a><var>3.10</var>affirmative vote of a majority of the qualified members of the board, or a majority of a <br/>
<a id="pl.3.11"></a><var>3.11</var>quorum of the board at any meeting duly called, is considered the action of the board. <br/>
<a id="pl.3.12"></a><var>3.12</var>The board shall meet at such times and places as may be fixed by the board. Meetings <br/>
<a id="pl.3.13"></a><var>3.13</var>of the board are subject to chapter 13D. A majority of the board members then in office <br/>
<a id="pl.3.14"></a><var>3.14</var>constitutes a quorum at any meeting duly called. The board shall have a seal, which <br/>
<a id="pl.3.15"></a><var>3.15</var>must be judicially noticed. The board shall retain or arrange for the retention of all <br/>
<a id="pl.3.16"></a><var>3.16</var>applications and all documents under oath that are filed with the board and also records of <br/>
<a id="pl.3.17"></a><var>3.17</var>its proceedings, and it shall maintain a registry of the names and addresses of all licensees <br/>
<a id="pl.3.18"></a><var>3.18</var>and registrants under this chapter. In any proceeding in court, civil or criminal, arising <br/>
<a id="pl.3.19"></a><var>3.19</var>out of or founded upon any provision of this chapter, copies of records of the proceeding <br/>
<a id="pl.3.20"></a><var>3.20</var>certified as true copies under the seal of the boards by the board chair or executive director <br/>
<a id="pl.3.21"></a><var>3.21</var>shall be admissible in evidence as tending to prove the contents of the records.<br/>
<br/>
<a id="bill.0.8.0"></a><a id="pl.3.22"></a><var>3.22</var>    Sec. 8. Minnesota Statutes 2006, section 326A.02, subdivision 4, is amended to read:<br/>
<a id="pl.3.23"></a><var>3.23</var>    Subd. 4. <b>Powers.</b> The powers and duties of the board shall be as provided in this <br/>
<a id="pl.3.24"></a><var>3.24</var>chapter or as otherwise provided by law. The board, or the complaint committee if <br/>
<a id="pl.3.25"></a><var>3.25</var>authorized by the board, may issue subpoenas to compel the attendance of witnesses and <br/>
<a id="pl.3.26"></a><var>3.26</var>the production of documents, to administer oaths, to take testimony, to cooperate with the <br/>
<a id="pl.3.27"></a><var>3.27</var>appropriate state, federal, foreign regulatory, or law enforcement authorities in other states <br/>
<a id="pl.3.28"></a><var>3.28</var>in investigation and enforcement concerning violations of this chapter and comparable <br/>
<a id="pl.3.29"></a><var>3.29</var>acts of other states, and to receive evidence concerning all matters within the scope of this <br/>
<a id="pl.3.30"></a><var>3.30</var>chapter. In case of disobedience of a subpoena, the board may invoke the aid of any court <br/>
<a id="pl.3.31"></a><var>3.31</var>in requiring the attendance and testimony of witnesses and the production of documentary <br/>
<a id="pl.3.32"></a><var>3.32</var>evidence. The board, its members, and its agents are immune from personal liability for <br/>
<a id="pl.3.33"></a><var>3.33</var>actions taken in good faith in the discharge of the board's responsibilities, and the state <br/>
<a id="pl.3.34"></a><var>3.34</var>shall hold the board, its members, and its agents harmless from all costs, damages, and <br/>
<a id="pl.4.1"></a><var>4.1</var>attorneys fees arising from claims and suits against them with respect to matters to which <br/>
<a id="pl.4.2"></a><var>4.2</var>such immunity applies. The board shall enforce the standard of general education, the <br/>
<a id="pl.4.3"></a><var>4.3</var>standard of special education in the science and art of accounting, and the standard of <br/>
<a id="pl.4.4"></a><var>4.4</var>good character and general experience laws relating to the practice of public accounting, <br/>
<a id="pl.4.5"></a><var>4.5</var>as prescribed in this chapter and rules adopted by the board.<br/>
<br/>
<a id="bill.0.9.0"></a><a id="pl.4.6"></a><var>4.6</var>    Sec. 9. Minnesota Statutes 2006, section 326A.02, subdivision 5, is amended to read:<br/>
<a id="pl.4.7"></a><var>4.7</var>    Subd. 5. <b>Rules.</b> The board may adopt rules governing its administration and <br/>
<a id="pl.4.8"></a><var>4.8</var>enforcement of this chapter and the conduct of licensees and persons registered under <br/>
<a id="pl.4.9"></a><var>4.9</var>section 
         <statute_ref>326A.06, paragraph (b)</statute_ref>, including: <br/>
<a id="pl.4.10"></a><var>4.10</var>(1) rules governing the board's meetings and the conduct of its business;<br/>
<a id="pl.4.11"></a><var>4.11</var>(2) rules of procedure governing the conduct of investigations and hearings and <br/>
<a id="pl.4.12"></a><var>4.12</var>discipline by the board;<br/>
<a id="pl.4.13"></a><var>4.13</var>(3) rules specifying the educational and experience qualifications required for the <br/>
<a id="pl.4.14"></a><var>4.14</var>issuance of certificates and the continuing professional education required for renewal <br/>
<a id="pl.4.15"></a><var>4.15</var>of certificates;<br/>
<a id="pl.4.16"></a><var>4.16</var>(4) rules of professional conduct directed to controlling the quality and probity <br/>
<a id="pl.4.17"></a><var>4.17</var>of services by licensees, and dealing among other things with independence, integrity, <br/>
<a id="pl.4.18"></a><var>4.18</var>and objectivity; competence and technical standards; and responsibilities to the public <br/>
<a id="pl.4.19"></a><var>4.19</var>and to clients;<br/>
<a id="pl.4.20"></a><var>4.20</var>(5) rules governing the professional standards applicable to licensees including <br/>
<a id="pl.4.21"></a><var>4.21</var>adoption of the statements on standards specified in section 
         <statute_ref>326A.01, subdivision 2</statute_ref>, and <br/>
<a id="pl.4.22"></a><var>4.22</var>as developed for general application by recognized national accountancy organizations <br/>
<a id="pl.4.23"></a><var>4.23</var>such as the American Institute of Certified Public Accountants or the Public Company <br/>
<a id="pl.4.24"></a><var>4.24</var>Accounting Oversight Board; <br/>
<a id="pl.4.25"></a><var>4.25</var>(6) rules governing the manner and circumstances of use of the titles "certified public <br/>
<a id="pl.4.26"></a><var>4.26</var>accountant," "CPA," "registered accounting practitioner," and "RAP";<br/>
<a id="pl.4.27"></a><var>4.27</var>(7) rules regarding peer review that may be required to be performed under <br/>
<a id="pl.4.28"></a><var>4.28</var>provisions of this chapter;<br/>
<a id="pl.4.29"></a><var>4.29</var>(8) rules on substantial equivalence to implement section 
         <statute_ref>326A.14</statute_ref>; <br/>
<a id="pl.4.30"></a><var>4.30</var>(9) rules regarding the conduct of the certified public accountant examination;<br/>
<a id="pl.4.31"></a><var>4.31</var>(10) rules regarding the issuance and renewals of certificates, permits, and <br/>
<a id="pl.4.32"></a><var>4.32</var>registrations;<br/>
<a id="pl.4.33"></a><var>4.33</var>(11) rules regarding transition provisions to implement this chapter;<br/>
<a id="pl.4.34"></a><var>4.34</var>(12) rules specifying the educational and experience qualifications for registration, <br/>
<a id="pl.4.35"></a><var>4.35</var>rules of professional conduct, rules regarding peer review, rules governing standards for <br/>
<a id="pl.5.1"></a><var>5.1</var>providing services, and rules regarding the conduct and content of examination for those <br/>
<a id="pl.5.2"></a><var>5.2</var>persons registered under section 
         <statute_ref>326A.06, paragraph (b)</statute_ref>; and <br/>
<a id="pl.5.3"></a><var>5.3</var>(13) rules regarding fees for examinations, certificate issuance and renewal, firm <br/>
<a id="pl.5.4"></a><var>5.4</var>permits, registrations under section 
         <statute_ref>326A.06, paragraph (b)</statute_ref>, notifications made under <br/>
<a id="pl.5.5"></a><var>5.5</var>section 
         <statute_ref>326A.14</statute_ref>, and late processing fees.; and <br/>
<a id="pl.5.6"></a><var>5.6</var>(14) upon any change to this chapter, if the board determines a change in Minnesota <br/>
<a id="pl.5.7"></a><var>5.7</var>Rules is required, the board may initiate the expedited process under section 14.389 up to <br/>
<a id="pl.5.8"></a><var>5.8</var>one year after the effective date of the change to this chapter.<br/>
<br/>
<a id="bill.0.10.0"></a><a id="pl.5.9"></a><var>5.9</var>    Sec. 10. Minnesota Statutes 2006, section 326A.02, subdivision 6, is amended to read:<br/>
<a id="pl.5.10"></a><var>5.10</var>    Subd. 6. <b>Complaint committee.</b> The board shall establish a complaint committee <br/>
<a id="pl.5.11"></a><var>5.11</var>to investigate, mediate, or initiate administrative or legal proceedings on behalf of the <br/>
<a id="pl.5.12"></a><var>5.12</var>board with respect to complaints filed with or information received by the board alleging <br/>
<a id="pl.5.13"></a><var>5.13</var>or indicating violations of this chapter or rules adopted by the board. The complaint <br/>
<a id="pl.5.14"></a><var>5.14</var>committee shall consist of three members of the board.<br/>
<br/>
<a id="bill.0.11.0"></a><a id="pl.5.15"></a><var>5.15</var>    Sec. 11. Minnesota Statutes 2006, section 326A.02, is amended by adding a <br/>
<a id="pl.5.16"></a><var>5.16</var>subdivision to read:<br/>
<a id="pl.5.17"></a><var>5.17</var>    Subd. 8. <b>Executive director.</b> The board shall appoint an executive director to <br/>
<a id="pl.5.18"></a><var>5.18</var>assist the board in performing its duties.<br/>
<br/>
<a id="bill.0.12.0"></a><a id="pl.5.19"></a><var>5.19</var>    Sec. 12. Minnesota Statutes 2006, section 326A.03, is amended to read:<br/>
<a id="pl.5.20"></a><var>5.20</var><b>326A.03 CERTIFIED PUBLIC ACCOUNTANT QUALIFICATIONS.</b><br/>
<a id="pl.5.21"></a><var>5.21</var>    Subdivision 1. <b>Qualifications.</b> The certificate of certified public accountant shall <br/>
<a id="pl.5.22"></a><var>5.22</var>be granted to persons of good moral character who meet the education, experience, and <br/>
<a id="pl.5.23"></a><var>5.23</var>examination requirements of this section and rules adopted under it and who apply <br/>
<a id="pl.5.24"></a><var>5.24</var>under section 
         <statute_ref>326A.04</statute_ref>. <br/>
<a id="pl.5.25"></a><var>5.25</var>Good moral character for purposes of this section chapter means the propensity to <br/>
<a id="pl.5.26"></a><var>5.26</var>provide professional services in a fair, honest, and trustworthy manner and a lack of <br/>
<a id="pl.5.27"></a><var>5.27</var>a history of dishonest or felonious acts. The board may refuse to grant a certificate on <br/>
<a id="pl.5.28"></a><var>5.28</var>the ground of failure to satisfy this requirement only if there is a substantial connection <br/>
<a id="pl.5.29"></a><var>5.29</var>between the lack of good moral character of the applicant and the professional <br/>
<a id="pl.5.30"></a><var>5.30</var>responsibilities of a licensee and if the finding by the board of lack of good moral <br/>
<a id="pl.5.31"></a><var>5.31</var>character is supported by clear and convincing evidence. When an applicant is found to <br/>
<a id="pl.5.32"></a><var>5.32</var>be unqualified for a certificate because of a lack of good moral character, the board shall <br/>
<a id="pl.5.33"></a><var>5.33</var>furnish the applicant a statement containing the findings of the board, a complete record <br/>
<a id="pl.6.1"></a><var>6.1</var>of the evidence upon which the determination was based, and a notice of the applicant's <br/>
<a id="pl.6.2"></a><var>6.2</var>right of appeal.<br/>
<a id="pl.6.3"></a><var>6.3</var>    Subd. 2. <b>Examination before July 1, 2006; </b><b>required </b><b>education and experience.</b><br/>
<a id="pl.6.4"></a><var>6.4</var>Until July 1, 2006, the examination must be administered by the board only to a candidate <br/>
<a id="pl.6.5"></a><var>6.5</var>who:<br/>
<a id="pl.6.6"></a><var>6.6</var>(1) holds a master's degree with a major in accounting from a college or university <br/>
<a id="pl.6.7"></a><var>6.7</var>that is fully accredited by a recognized accrediting agency listed with the United States <br/>
<a id="pl.6.8"></a><var>6.8</var>Department of Education;<br/>
<a id="pl.6.9"></a><var>6.9</var>(2) holds a baccalaureate degree, with a major in accounting, from a college or <br/>
<a id="pl.6.10"></a><var>6.10</var>university that is fully accredited by a recognized accrediting agency listed with the <br/>
<a id="pl.6.11"></a><var>6.11</var>United States Department of Education or who has in the opinion of the board at least <br/>
<a id="pl.6.12"></a><var>6.12</var>an equivalent education;<br/>
<a id="pl.6.13"></a><var>6.13</var>(3) holds a baccalaureate degree from a college or university that is fully accredited <br/>
<a id="pl.6.14"></a><var>6.14</var>by a recognized accrediting agency listed with the United States Department of Education, <br/>
<a id="pl.6.15"></a><var>6.15</var>or who has in the opinion of the board at least an equivalent education, provided that at <br/>
<a id="pl.6.16"></a><var>6.16</var>least one year of experience of the type specified in subdivision 8 has been completed;<br/>
<a id="pl.6.17"></a><var>6.17</var>(4) provides evidence of having completed two or more years of study with a passing <br/>
<a id="pl.6.18"></a><var>6.18</var>grade average or above from a college, university, technical college, or a Minnesota <br/>
<a id="pl.6.19"></a><var>6.19</var>licensed private school that is fully accredited by a recognized accrediting agency listed <br/>
<a id="pl.6.20"></a><var>6.20</var>with the United States Department of Education, or who has in the opinion of the board <br/>
<a id="pl.6.21"></a><var>6.21</var>at least an equivalent education, provided that at least three years experience of the type <br/>
<a id="pl.6.22"></a><var>6.22</var>specified in subdivision 8 has been completed; or<br/>
<a id="pl.6.23"></a><var>6.23</var>(5) holds a diploma as a graduate of an accredited high school, or who has in the <br/>
<a id="pl.6.24"></a><var>6.24</var>opinion of the board at least an equivalent education, provided that at least five years <br/>
<a id="pl.6.25"></a><var>6.25</var>experience of the type specified in subdivision 8 has been completed.<br/>
<a id="pl.6.26"></a><var>6.26</var>    Subd. 3. <b>Examination </b><b>on or </b><b>after July 1, 2006; </b><b>required </b><b>education.</b> On or after <br/>
<a id="pl.6.27"></a><var>6.27</var>July 1, 2006, the examination must be administered by the board only to a candidate who <br/>
<a id="pl.6.28"></a><var>6.28</var>has a baccalaureate or higher degree, with a major in accounting or a major in business <br/>
<a id="pl.6.29"></a><var>6.29</var>with accounting emphasis, or an equivalent education, from a college or university <br/>
<a id="pl.6.30"></a><var>6.30</var>that is fully accredited by a recognized accrediting agency listed with the United States <br/>
<a id="pl.6.31"></a><var>6.31</var>Department of Education or an equivalent accrediting association.<br/>
<a id="pl.6.32"></a><var>6.32</var>    Subd. 3a. <b>Early examination.</b> Notwithstanding any contrary provision in this <br/>
<a id="pl.6.33"></a><var>6.33</var>section, the board may adopt rules to permit a person under certain circumstances:<br/>
<a id="pl.6.34"></a><var>6.34</var>(1) to apply for the examination within 180 days prior to the person's anticipated <br/>
<a id="pl.6.35"></a><var>6.35</var>completion of the education requirements; and<br/>
<a id="pl.7.1"></a><var>7.1</var>(2) to take all or a part of the examination within 90 days of the anticipated <br/>
<a id="pl.7.2"></a><var>7.2</var>completion of the education requirements. No credit shall be given for any part of the <br/>
<a id="pl.7.3"></a><var>7.3</var>examination taken before completion of the education requirements in subdivision 3 <br/>
<a id="pl.7.4"></a><var>7.4</var>unless:<br/>
<a id="pl.7.5"></a><var>7.5</var>(i) the education requirements in subdivision 3 and adopted rule requirements are <br/>
<a id="pl.7.6"></a><var>7.6</var>met within 120 days after taking any part of the examination; and<br/>
<a id="pl.7.7"></a><var>7.7</var>(ii) documentation of completion of education requirements is received by the board <br/>
<a id="pl.7.8"></a><var>7.8</var>within 150 days of the person taking any part of the examination.<br/>
<a id="pl.7.9"></a><var>7.9</var>    Subd. 4. <b>Examination requirements.</b> (a) The examination required to be passed <br/>
<a id="pl.7.10"></a><var>7.10</var>as a condition for the granting of a certificate must be held as often as convenient, in the <br/>
<a id="pl.7.11"></a><var>7.11</var>opinion of the board, and must test the applicant's knowledge of the subjects of accounting <br/>
<a id="pl.7.12"></a><var>7.12</var>and auditing, and other related subjects that the board may specify by rule, including but <br/>
<a id="pl.7.13"></a><var>7.13</var>not limited to business law and taxation. The time for holding the examination must be <br/>
<a id="pl.7.14"></a><var>7.14</var>determined by the board and may be changed from time to time. The board shall prescribe <br/>
<a id="pl.7.15"></a><var>7.15</var>by rule the methods of applying for and conducting the examination, including methods <br/>
<a id="pl.7.16"></a><var>7.16</var>for grading and determining a passing grade required of an applicant for a certificate. <br/>
<a id="pl.7.17"></a><var>7.17</var>However, the board shall to the extent possible ensure that the examination itself, grading <br/>
<a id="pl.7.18"></a><var>7.18</var>of the examination, and the passing grades, are uniform with those applicable in all other <br/>
<a id="pl.7.19"></a><var>7.19</var>states. The board may make such use of all or any part of the Uniform Certified Public <br/>
<a id="pl.7.20"></a><var>7.20</var>Accountant Examination and Advisory Grading Service of the American Institute of <br/>
<a id="pl.7.21"></a><var>7.21</var>Certified Public Accountants and may contract with third parties to perform administrative <br/>
<a id="pl.7.22"></a><var>7.22</var>services with respect to the examination that it considers appropriate to assist it in <br/>
<a id="pl.7.23"></a><var>7.23</var>performing its duties under this paragraph.<br/>
<a id="pl.7.24"></a><var>7.24</var>(b) The board may charge, or provide for a third party administering the examination <br/>
<a id="pl.7.25"></a><var>7.25</var>to charge, each applicant a fee.<br/>
<a id="pl.7.26"></a><var>7.26</var>    Subd. 5. <b>Certificate before July 1, 2006; </b><b>required </b><b>experience.</b> Until July 1, 2006, <br/>
<a id="pl.7.27"></a><var>7.27</var>those persons a person who have has passed the examination required by this section and <br/>
<a id="pl.7.28"></a><var>7.28</var>who meet meets all other requirements for a certificate, including payment of required <br/>
<a id="pl.7.29"></a><var>7.29</var>fees, must be granted certificates a certificate as a certified public accountants accountant, <br/>
<a id="pl.7.30"></a><var>7.30</var>providing that they have the person has completed the following experience requirements <br/>
<a id="pl.7.31"></a><var>7.31</var>of the type specified in subdivision 8 in addition to any experience already required in <br/>
<a id="pl.7.32"></a><var>7.32</var>subdivision 2:<br/>
<a id="pl.7.33"></a><var>7.33</var>(1) for those whose educational qualifications meet the requirements of subdivision <br/>
<a id="pl.7.34"></a><var>7.34</var>2, clause (1), the experience requirement is one year;<br/>
<a id="pl.7.35"></a><var>7.35</var>(2) for those whose educational qualifications meet the requirements of subdivision <br/>
<a id="pl.7.36"></a><var>7.36</var>2, clause (2), the experience requirement is two years;<br/>
<a id="pl.8.1"></a><var>8.1</var>(3) for those whose educational and experience qualifications meet the requirements <br/>
<a id="pl.8.2"></a><var>8.2</var>of subdivision 2, clause (3), the additional required experience is two years;<br/>
<a id="pl.8.3"></a><var>8.3</var>(4) for those whose educational and experience qualifications meet the requirements <br/>
<a id="pl.8.4"></a><var>8.4</var>of subdivision 2, clause (4), the additional required experience is two years; and<br/>
<a id="pl.8.5"></a><var>8.5</var>(5) for those whose educational and experience qualifications meet the requirements <br/>
<a id="pl.8.6"></a><var>8.6</var>of subdivision 2, clause (5), the additional required experience is one year.<br/>
<a id="pl.8.7"></a><var>8.7</var>    Subd. 6. <b>Certificate </b><b>on or </b><b>after July 1, 2006; </b><b>required </b><b>education and experience.</b><br/>
<a id="pl.8.8"></a><var>8.8</var>(a) On or after July 1, 2006, those persons a person who have has passed the examination <br/>
<a id="pl.8.9"></a><var>8.9</var>required in this section must be granted certificates a certificate as a certified public <br/>
<a id="pl.8.10"></a><var>8.10</var>accountants accountant provided they certify: (1) the person certifies to the board that <br/>
<a id="pl.8.11"></a><var>8.11</var>they have the person has completed at least 150 semester or 225 quarter hours at a college <br/>
<a id="pl.8.12"></a><var>8.12</var>or university that is fully accredited by a recognized accrediting agency listed with the <br/>
<a id="pl.8.13"></a><var>8.13</var>United States Department of Education, or an equivalent accrediting association, and <br/>
<a id="pl.8.14"></a><var>8.14</var>have has completed at least one year of experience of the type specified in paragraph (b); <br/>
<a id="pl.8.15"></a><var>8.15</var>(2) the board verifies the certifications; and (3) the person complies with requirements <br/>
<a id="pl.8.16"></a><var>8.16</var>for initial issuance of the certificate as a certified public accountant as prescribed by <br/>
<a id="pl.8.17"></a><var>8.17</var>the board by rule.<br/>
<a id="pl.8.18"></a><var>8.18</var>(b) An applicant for initial issuance of a certificate under this subdivision shall <br/>
<a id="pl.8.19"></a><var>8.19</var>show that the applicant has had one year of experience. Acceptable experience <br/>
<a id="pl.8.20"></a><var>8.20</var>includes providing any type of service or advice involving the use of accounting, attest, <br/>
<a id="pl.8.21"></a><var>8.21</var>compilation, management advisory, financial advisory, tax, or consulting skills, as verified <br/>
<a id="pl.8.22"></a><var>8.22</var>by a licensee and meeting requirements prescribed by the board by rule. Acceptable <br/>
<a id="pl.8.23"></a><var>8.23</var>experience may be gained through employment in government, industry, academia, or <br/>
<a id="pl.8.24"></a><var>8.24</var>public practice. Experience as an auditor in the Office of the Legislative Auditor or State <br/>
<a id="pl.8.25"></a><var>8.25</var>Auditor, as verified by a licensee, shall be acceptable experience.<br/>
<a id="pl.8.26"></a><var>8.26</var>    Subd. 7. <b>Equivalent education criteria.</b> The board, in consultation with the <br/>
<a id="pl.8.27"></a><var>8.27</var>University of Minnesota, the Minnesota State Colleges and Universities, private colleges, <br/>
<a id="pl.8.28"></a><var>8.28</var>and private career schools regulated under chapter 141, shall establish criteria to assess <br/>
<a id="pl.8.29"></a><var>8.29</var>equivalent education for purposes of subdivision 3.<br/>
<a id="pl.8.30"></a><var>8.30</var>    Subd. 8. <b>Qualifying experience until July 1, 2006.</b> Until July 1, 2006, qualifying <br/>
<a id="pl.8.31"></a><var>8.31</var>experience includes public accounting experience:<br/>
<a id="pl.8.32"></a><var>8.32</var>(1) as a staff employee of a certified public accountant, or a firm;<br/>
<a id="pl.8.33"></a><var>8.33</var>(2) as an auditor in the Office of the Legislative Auditor or State Auditor, or as an <br/>
<a id="pl.8.34"></a><var>8.34</var>auditor or examiner with any other agency of government, if the experience, in the opinion <br/>
<a id="pl.8.35"></a><var>8.35</var>of the board, is equally comprehensive and diversified;<br/>
<a id="pl.8.36"></a><var>8.36</var>(3) as a self-employed public accountant or as a partner in a firm; or<br/>
<a id="pl.9.1"></a><var>9.1</var>(4) in any combination of the foregoing capacities.<br/>
<br/>
<a id="bill.0.13.0"></a><a id="pl.9.2"></a><var>9.2</var>    Sec. 13. Minnesota Statutes 2006, section 326A.04, is amended to read:<br/>
<a id="pl.9.3"></a><var>9.3</var><b>326A.04 CERTIFICATE </b><b>ISSUED OR RENEWED</b><b> ISSUANCE AND </b><br/>
<a id="pl.9.4"></a><var>9.4</var><b>RENEWAL</b><b>; COMPETENCY STANDARD.</b><br/>
<a id="pl.9.5"></a><var>9.5</var>    Subdivision 1. <b>Eligibility.</b> The board shall grant or renew certificates to persons <br/>
<a id="pl.9.6"></a><var>9.6</var>a person of good moral character who make makes an application and demonstrate: <br/>
<a id="pl.9.7"></a><var>9.7</var>(1) demonstrates that their the person's qualifications, including where applicable the <br/>
<a id="pl.9.8"></a><var>9.8</var>qualifications prescribed by section 
         <statute_ref>326A.03</statute_ref>, are in accordance with this section; or and <br/>
<a id="pl.9.9"></a><var>9.9</var>rules adopted by the board.<br/>
<a id="pl.9.10"></a><var>9.10</var>(2) that they are eligible under the substantial equivalency standard in section <br/>
<a id="pl.9.11"></a><var>9.11</var><statute_ref>326A.14, subdivision 1</statute_ref>, paragraph (b), which requires licensure for those certified public <br/>
<a id="pl.9.12"></a><var>9.12</var>accountants who establish their principal places of business in another state. The holder of <br/>
<a id="pl.9.13"></a><var>9.13</var>a certificate issued under this section may only provide attest services in a CPA firm that <br/>
<a id="pl.9.14"></a><var>9.14</var>holds a permit issued under section 
         <statute_ref>326A.05</statute_ref>. <br/>
<a id="pl.9.15"></a><var>9.15</var>    Subd. 2. <b>Timing.</b> (a) Certificates must be initially issued and renewed for periods <br/>
<a id="pl.9.16"></a><var>9.16</var>of not more than one year three years but in any event must expire on the December 31 <br/>
<a id="pl.9.17"></a><var>9.17</var>following issuance or renewal in the year prescribed by the board by rule. Applications for <br/>
<a id="pl.9.18"></a><var>9.18</var>certificates must be made in the form, and in the case of applications for renewal between <br/>
<a id="pl.9.19"></a><var>9.19</var>the dates, specified by the board in rule. The board shall grant or deny an application no <br/>
<a id="pl.9.20"></a><var>9.20</var>later than 90 days after the application is filed in proper form. If the applicant seeks the <br/>
<a id="pl.9.21"></a><var>9.21</var>opportunity to show that issuance or renewal of a certificate was mistakenly denied, or if <br/>
<a id="pl.9.22"></a><var>9.22</var>the board is unable to determine whether it should be granted or denied, the board may <br/>
<a id="pl.9.23"></a><var>9.23</var>issue to the applicant a provisional certificate that expires 90 days after its issuance, or <br/>
<a id="pl.9.24"></a><var>9.24</var>when the board determines whether or not to issue or renew the certificate for which <br/>
<a id="pl.9.25"></a><var>9.25</var>application was made, whichever occurs first.<br/>
<a id="pl.9.26"></a><var>9.26</var>(b) Certificate holders who do not provide professional services and do not use the <br/>
<a id="pl.9.27"></a><var>9.27</var>certified public accountant designation in any manner are not required to renew their <br/>
<a id="pl.9.28"></a><var>9.28</var>certificates provided they have notified the board as provided in board rule and comply <br/>
<a id="pl.9.29"></a><var>9.29</var>with the requirements for nonrenewal as specified in board rule.<br/>
<a id="pl.9.30"></a><var>9.30</var>(c) Applications for renewal of a certificate that are complete and timely filed with <br/>
<a id="pl.9.31"></a><var>9.31</var>the board and are not granted or denied by the board before January 1 are renewed on a <br/>
<a id="pl.9.32"></a><var>9.32</var>provisional basis as of January 1 and for 90 days thereafter, or until the board grants or <br/>
<a id="pl.9.33"></a><var>9.33</var>denies the renewal of the certificate, whichever occurs first, provided the licensee meets <br/>
<a id="pl.9.34"></a><var>9.34</var>the requirements in this chapter and rules adopted by the board.<br/>
<a id="pl.10.1"></a><var>10.1</var>    Subd. 3. <b>Residents of other states.</b> (a) With regard to applicants an applicant <br/>
<a id="pl.10.2"></a><var>10.2</var>who do must obtain a certificate in this state because the applicant does not qualify for <br/>
<a id="pl.10.3"></a><var>10.3</var>reciprocity under the substantial equivalency standard in section 
         <statute_ref>326A.14, subdivision <br/>
<a id="pl.10.4"></a><var>10.4</var>1
         </statute_ref>, paragraph (b), the board shall issue a certificate to a holder of a certificate, license, or <br/>
<a id="pl.10.5"></a><var>10.5</var>permit issued by another state upon a showing that: <br/>
<a id="pl.10.6"></a><var>10.6</var>(1) the applicant passed the examination required for issuance of the applicant's a <br/>
<a id="pl.10.7"></a><var>10.7</var>certificate with grades that would have been passing grades at the time in this state;<br/>
<a id="pl.10.8"></a><var>10.8</var>(2) the applicant had four years of experience outside of this state of the type <br/>
<a id="pl.10.9"></a><var>10.9</var>described in section 
         <statute_ref>326A.03, subdivision 6</statute_ref>, paragraph (b), if application is made on or <br/>
<a id="pl.10.10"></a><var>10.10</var>after July 1, 2006, or section 
         <statute_ref>326A.03, subdivision 8</statute_ref>, if application is made before July <br/>
<a id="pl.10.11"></a><var>10.11</var>1, 2006; or the applicant meets equivalent requirements prescribed by the board by rule, <br/>
<a id="pl.10.12"></a><var>10.12</var>after passing the examination upon which the applicant's certificate was based and within <br/>
<a id="pl.10.13"></a><var>10.13</var>the ten years immediately preceding the application; and <br/>
<a id="pl.10.14"></a><var>10.14</var>(3) if the applicant's certificate, license, or permit was issued more than four years <br/>
<a id="pl.10.15"></a><var>10.15</var>prior to the application for issuance of an initial certificate under this subdivision, that the <br/>
<a id="pl.10.16"></a><var>10.16</var>applicant has fulfilled the requirements of continuing professional education that would <br/>
<a id="pl.10.17"></a><var>10.17</var>have been applicable under subdivision 4.; and<br/>
<a id="pl.10.18"></a><var>10.18</var>(4) the applicant has met the qualifications prescribed by the board by rule.<br/>
<a id="pl.10.19"></a><var>10.19</var>(b) As an alternative to the requirements of paragraph (a), A certificate holder <br/>
<a id="pl.10.20"></a><var>10.20</var>licensed by another state who establishes a principal place of business in this state shall <br/>
<a id="pl.10.21"></a><var>10.21</var>request the issuance of a certificate from the board prior to establishing the principal place <br/>
<a id="pl.10.22"></a><var>10.22</var>of business. The board shall issue a certificate to the person if the person's individual <br/>
<a id="pl.10.23"></a><var>10.23</var>certified public accountant qualifications, upon verification, are substantially equivalent <br/>
<a id="pl.10.24"></a><var>10.24</var>to the certified public accountant licensure requirements of this chapter or the person <br/>
<a id="pl.10.25"></a><var>10.25</var>meets equivalent requirements as the board prescribes by rule. Residents of this state <br/>
<a id="pl.10.26"></a><var>10.26</var>who provide professional services in this state at an office location in this state shall be <br/>
<a id="pl.10.27"></a><var>10.27</var>considered to have their principal place of business in this state.<br/>
<a id="pl.10.28"></a><var>10.28</var>    Subd. 4. <b>Program of learning.</b> For renewal of a certificate under this section, <br/>
<a id="pl.10.29"></a><var>10.29</var>Each licensee shall participate in a program of learning designed to maintain professional <br/>
<a id="pl.10.30"></a><var>10.30</var>competency. The program of learning must comply with rules adopted by the board. <br/>
<a id="pl.10.31"></a><var>10.31</var>The board may by rule create an exception to this requirement for licensees who do not <br/>
<a id="pl.10.32"></a><var>10.32</var>perform or offer to perform for the public one or more kinds of services involving the use <br/>
<a id="pl.10.33"></a><var>10.33</var>of accounting or auditing skills, including issuance of reports on financial statements or of <br/>
<a id="pl.10.34"></a><var>10.34</var>one or more kinds of management advisory, financial advisory or consulting services, or <br/>
<a id="pl.10.35"></a><var>10.35</var>the preparation of tax returns or the furnishing of advice on tax matters. A licensee granted <br/>
<a id="pl.10.36"></a><var>10.36</var>such an exception by the board must place the word "inactive" adjacent to the CPA title <br/>
<a id="pl.11.1"></a><var>11.1</var>on any business card, letterhead, or any other document or device, with the exception of <br/>
<a id="pl.11.2"></a><var>11.2</var>the licensee's certificate on which the CPA title appears.<br/>
<a id="pl.11.3"></a><var>11.3</var>    Subd. 5. <b>Fee.</b> The board shall charge a fee for each application for initial issuance or <br/>
<a id="pl.11.4"></a><var>11.4</var>renewal of a certificate under this section.<br/>
<a id="pl.11.5"></a><var>11.5</var>    Subd. 6. <b>Other state licenses.</b> Applicants An applicant for initial issuance or <br/>
<a id="pl.11.6"></a><var>11.6</var>renewal of certificates a certificate under this section shall in their applications list in <br/>
<a id="pl.11.7"></a><var>11.7</var>the application all states in which they have the applicant has applied for or hold holds <br/>
<a id="pl.11.8"></a><var>11.8</var>certificates, licenses, or permits, and list any past denial, revocation, or suspension of a <br/>
<a id="pl.11.9"></a><var>11.9</var>certificate, license, or permit. Each holder of or applicant for a certificate under this section <br/>
<a id="pl.11.10"></a><var>11.10</var>shall notify the board in writing, within 30 days after its occurrence, of any issuance, <br/>
<a id="pl.11.11"></a><var>11.11</var>denial, revocation, or suspension of a certificate, license, or permit by another state.<br/>
<a id="pl.11.12"></a><var>11.12</var>    Subd. 7. <b>Certificates issued by foreign countries.</b> The board shall issue a <br/>
<a id="pl.11.13"></a><var>11.13</var>certificate to a holder of a substantially generally equivalent foreign country designation, <br/>
<a id="pl.11.14"></a><var>11.14</var>provided that:<br/>
<a id="pl.11.15"></a><var>11.15</var>(1) the foreign authority that granted the designation makes similar provision to <br/>
<a id="pl.11.16"></a><var>11.16</var>allow a person who holds a valid certificate issued by this state to obtain the foreign <br/>
<a id="pl.11.17"></a><var>11.17</var>authority's comparable designation;<br/>
<a id="pl.11.18"></a><var>11.18</var>(2) the foreign designation:<br/>
<a id="pl.11.19"></a><var>11.19</var>(i) was duly issued by a foreign authority that regulates the practice of public <br/>
<a id="pl.11.20"></a><var>11.20</var>accountancy and the foreign designation has not expired or been revoked or suspended;<br/>
<a id="pl.11.21"></a><var>11.21</var>(ii) entitles the holder to issue reports upon financial statements; and<br/>
<a id="pl.11.22"></a><var>11.22</var>(iii) was issued upon the basis of educational, examination, and experience <br/>
<a id="pl.11.23"></a><var>11.23</var>requirements established by the foreign authority or by law; and<br/>
<a id="pl.11.24"></a><var>11.24</var>(3) the applicant:<br/>
<a id="pl.11.25"></a><var>11.25</var>(i) received the designation, based on educational and examination standards <br/>
<a id="pl.11.26"></a><var>11.26</var>substantially generally equivalent to those in effect in this state, at the time the foreign <br/>
<a id="pl.11.27"></a><var>11.27</var>designation was granted;<br/>
<a id="pl.11.28"></a><var>11.28</var>(ii) has, within the ten years immediately preceding the application, completed an <br/>
<a id="pl.11.29"></a><var>11.29</var>experience requirement that is substantially generally equivalent to the requirement in <br/>
<a id="pl.11.30"></a><var>11.30</var>section 
         <statute_ref>326A.03, subdivision 6</statute_ref>, paragraph (b), if application is made on or after July 1, <br/>
<a id="pl.11.31"></a><var>11.31</var>2006, or section 
         <statute_ref>326A.03, subdivision 8</statute_ref>, if application is made before July 1, 2006, in <br/>
<a id="pl.11.32"></a><var>11.32</var>the jurisdiction that granted the foreign designation; completed four years of professional <br/>
<a id="pl.11.33"></a><var>11.33</var>experience in this state; or met equivalent requirements prescribed by the board by <br/>
<a id="pl.11.34"></a><var>11.34</var>rule; and <br/>
<a id="pl.12.1"></a><var>12.1</var>(iii) passed a uniform qualifying examination in national standards and an <br/>
<a id="pl.12.2"></a><var>12.2</var>examination on the laws, regulations, and code of ethical conduct in effect in this state <br/>
<a id="pl.12.3"></a><var>12.3</var>acceptable to as the board prescribes by rule.<br/>
<a id="pl.12.4"></a><var>12.4</var>    Subd. 8. <b>Other jurisdictions in which foreign applicant is licensed.</b> An applicant <br/>
<a id="pl.12.5"></a><var>12.5</var>under subdivision 7 shall list in the application list all jurisdictions, foreign and domestic, <br/>
<a id="pl.12.6"></a><var>12.6</var>in which the applicant has applied for or holds a designation to practice public accountancy. <br/>
<a id="pl.12.7"></a><var>12.7</var>Each holder of a certificate issued under subdivision 7 shall notify the board in writing, <br/>
<a id="pl.12.8"></a><var>12.8</var>within 30 days after its occurrence, of any issuance, denial, revocation, or suspension of a <br/>
<a id="pl.12.9"></a><var>12.9</var>designation or commencement of a disciplinary or enforcement action by any jurisdiction.<br/>
<a id="pl.12.10"></a><var>12.10</var>    Subd. 9. <b>Application by foreign certificate holder.</b> The board has the sole <br/>
<a id="pl.12.11"></a><var>12.11</var>authority to interpret the application of the provisions of subdivisions 7 and 8.<br/>
<a id="pl.12.12"></a><var>12.12</var>    Subd. 10. <b>Peer review.</b> The board shall by rule require as a condition for renewal <br/>
<a id="pl.12.13"></a><var>12.13</var>of a certificate under this section by any certificate holder who performs compilation <br/>
<a id="pl.12.14"></a><var>12.14</var>services for the public other than through a CPA firm, that the individual undergo, no more <br/>
<a id="pl.12.15"></a><var>12.15</var>frequently than once every three years, a peer review conducted in a manner specified <br/>
<a id="pl.12.16"></a><var>12.16</var>by the board in rule. The review shall include verification that the individual has met the <br/>
<a id="pl.12.17"></a><var>12.17</var>competency requirements set out in professional standards for the services described in <br/>
<a id="pl.12.18"></a><var>12.18</var>this subdivision as set forth by rule.<br/>
<a id="pl.12.19"></a><var>12.19</var>    Subd. 11. <b>Automatic revocation.</b> The certificates certificate of persons a person <br/>
<a id="pl.12.20"></a><var>12.20</var>who fail fails to renew their certificates a certificate for more than two years after <br/>
<a id="pl.12.21"></a><var>12.21</var>expiration or the certificate of a person who had not reported required experience to the <br/>
<a id="pl.12.22"></a><var>12.22</var>board by January 1, 2003, and who fails to report the required experience under Minnesota <br/>
<a id="pl.12.23"></a><var>12.23</var>Rules shall be automatically revoked by order of the board. The orders may be issued by <br/>
<a id="pl.12.24"></a><var>12.24</var>the board without following the procedures of chapter 14, provided the board notifies each <br/>
<a id="pl.12.25"></a><var>12.25</var>such affected person by mail at the person's last known address on file with the board at <br/>
<a id="pl.12.26"></a><var>12.26</var>least three days prior to the issuance of any such order. No notice is required if the last <br/>
<a id="pl.12.27"></a><var>12.27</var>communication sent by the board to a licensee was returned to the board by the United <br/>
<a id="pl.12.28"></a><var>12.28</var>States Postal Service as undeliverable and with no forwarding address. Certificates so <br/>
<a id="pl.12.29"></a><var>12.29</var>revoked by the board may be reinstated, if at all, under section 
         <statute_ref>326A.09</statute_ref>. This subdivision <br/>
<a id="pl.12.30"></a><var>12.30</var>does not apply to certified public accountants who have notified the board, according to <br/>
<a id="pl.12.31"></a><var>12.31</var>requirements prescribed by board rule, that they will not use the CPA designation in any <br/>
<a id="pl.12.32"></a><var>12.32</var>manner and will not provide professional services. <br/>
<a id="pl.12.33"></a><var>12.33</var>    Subd. 12. <b>Professional ethics examination.</b> The board shall adopt rules <br/>
<a id="pl.12.34"></a><var>12.34</var>establishing requirements for a professional ethics examination which must be completed <br/>
<a id="pl.12.35"></a><var>12.35</var>before an initial certificate is issued under this section.<br/>
<br/>
<a id="bill.0.14.0"></a><a id="pl.13.1"></a><var>13.1</var>    Sec. 14. Minnesota Statutes 2006, section 326A.05, subdivision 1, is amended to read:<br/>
<a id="pl.13.2"></a><var>13.2</var>    Subdivision 1. <b>General.</b> The board shall grant or renew permits to practice as a CPA <br/>
<a id="pl.13.3"></a><var>13.3</var>firm to entities that make application and demonstrate their qualifications in accordance <br/>
<a id="pl.13.4"></a><var>13.4</var>with this section. A firm must hold a permit issued under this section in order to provide <br/>
<a id="pl.13.5"></a><var>13.5</var>attest services or to use the title "CPAs" or "CPA firm."<br/>
<a id="pl.13.6"></a><var>13.6</var>(a) The following must hold a permit issued under this section:<br/>
<a id="pl.13.7"></a><var>13.7</var>(1) any firm with an office in this state performing attest services as defined in <br/>
<a id="pl.13.8"></a><var>13.8</var>section 326A.01, subdivision 2;<br/>
<a id="pl.13.9"></a><var>13.9</var>(2) to the extent required by section 326A.10, paragraph (k), any firm with an office <br/>
<a id="pl.13.10"></a><var>13.10</var>in this state performing compilation services as defined in section 326A.01, subdivision 6;<br/>
<a id="pl.13.11"></a><var>13.11</var>(3) any firm with an office in this state that uses the title "CPA" or "CPA firm"; or<br/>
<a id="pl.13.12"></a><var>13.12</var>(4) any firm that does not have an office in this state but performs attest services <br/>
<a id="pl.13.13"></a><var>13.13</var>as described in section 326A.01, subdivision 2, paragraph (1), (3), or (4), for a client <br/>
<a id="pl.13.14"></a><var>13.14</var>having its headquarters in this state.<br/>
<a id="pl.13.15"></a><var>13.15</var>(b) A firm possessing a valid permit from another state which does not have an office <br/>
<a id="pl.13.16"></a><var>13.16</var>in this state may perform services described in section 326A.01, subdivision 2, clause (2), <br/>
<a id="pl.13.17"></a><var>13.17</var>or subdivision 6, for a client having its headquarters in this state and may use the title <br/>
<a id="pl.13.18"></a><var>13.18</var>"CPA" or "CPA firm" without a permit issued under this section only if:<br/>
<a id="pl.13.19"></a><var>13.19</var>(1) it has the qualifications described in subdivision 3, paragraph (b);<br/>
<a id="pl.13.20"></a><var>13.20</var>(2) as a condition to the renewal of the firm's permit issued by the other state, that <br/>
<a id="pl.13.21"></a><var>13.21</var>state requires a peer review which contains the requirements equivalent to subdivision 8, <br/>
<a id="pl.13.22"></a><var>13.22</var>paragraphs (a) and (e); and<br/>
<a id="pl.13.23"></a><var>13.23</var>(3) it performs the services through an individual who has been granted practice <br/>
<a id="pl.13.24"></a><var>13.24</var>privileges under section 326A.14.<br/>
<a id="pl.13.25"></a><var>13.25</var>(c) A firm possessing a valid permit from another state that does not have an office <br/>
<a id="pl.13.26"></a><var>13.26</var>in this state and which is not subject to the requirements of paragraph (a), clause (4), or <br/>
<a id="pl.13.27"></a><var>13.27</var>(b), may perform other professional services while using the title "CPA" or "CPA firm" in <br/>
<a id="pl.13.28"></a><var>13.28</var>this state without a permit issued under this section only if the firm:<br/>
<a id="pl.13.29"></a><var>13.29</var>(1) has the qualifications described in subdivision 3, paragraph (b);<br/>
<a id="pl.13.30"></a><var>13.30</var>(2) performs the services through an individual who has been granted practice <br/>
<a id="pl.13.31"></a><var>13.31</var>privileges under section 326A.14; and<br/>
<a id="pl.13.32"></a><var>13.32</var>(3) can lawfully perform the services in the state where the individuals with practice <br/>
<a id="pl.13.33"></a><var>13.33</var>privileges have their principal place of business.<br/>
<br/>
<a id="bill.0.15.0"></a><a id="pl.13.34"></a><var>13.34</var>    Sec. 15. Minnesota Statutes 2006, section 326A.05, subdivision 2, is amended to read:<br/>
<a id="pl.14.1"></a><var>14.1</var>    Subd. 2. <b>Timing.</b> (a) Permits must be initially issued and renewed for periods of <br/>
<a id="pl.14.2"></a><var>14.2</var>not more than one year but in any event must expire on December 31 following issuance <br/>
<a id="pl.14.3"></a><var>14.3</var>or renewal. Applications for permits shall be made in the form, and in the case of <br/>
<a id="pl.14.4"></a><var>14.4</var>applications for renewal between the dates, as the board specifies in rule. The board shall <br/>
<a id="pl.14.5"></a><var>14.5</var>grant or deny an application no later than 90 days after the application is filed in proper <br/>
<a id="pl.14.6"></a><var>14.6</var>form. If the applicant seeks the opportunity to show that issuance or renewal of a permit <br/>
<a id="pl.14.7"></a><var>14.7</var>was mistakenly denied or if the board is not able to determine whether it should be granted <br/>
<a id="pl.14.8"></a><var>14.8</var>or denied, the board may issue to the applicant a provisional permit, which expires 90 <br/>
<a id="pl.14.9"></a><var>14.9</var>days after its issuance, or when the board determines whether or not to issue or renew the <br/>
<a id="pl.14.10"></a><var>14.10</var>permit for which application was made, whichever occurs first.<br/>
<a id="pl.14.11"></a><var>14.11</var>(b) Applications for renewal of a permit that are complete and timely filed with the <br/>
<a id="pl.14.12"></a><var>14.12</var>board and are not granted or denied by the board before January 1 are renewed on a <br/>
<a id="pl.14.13"></a><var>14.13</var>provisional basis as of January 1 and for 90 days thereafter, or until the board grants <br/>
<a id="pl.14.14"></a><var>14.14</var>or denies the permit, whichever occurs first, provided the licensee meets the renewal <br/>
<a id="pl.14.15"></a><var>14.15</var>requirements in this chapter and rules adopted by the board.<br/>
<br/>
<a id="bill.0.16.0"></a><a id="pl.14.16"></a><var>14.16</var>    Sec. 16. Minnesota Statutes 2006, section 326A.05, subdivision 3, is amended to read:<br/>
<a id="pl.14.17"></a><var>14.17</var>    Subd. 3. <b>Qualifications.</b> (a) An applicant for initial issuance or renewal of a permit <br/>
<a id="pl.14.18"></a><var>14.18</var>to practice under this section shall comply with the requirements in this subdivision.<br/>
<a id="pl.14.19"></a><var>14.19</var>(b) Notwithstanding chapter 319B or any other provision of law, a simple majority <br/>
<a id="pl.14.20"></a><var>14.20</var>of the ownership of the firm, in terms of financial interests and voting rights of all partners, <br/>
<a id="pl.14.21"></a><var>14.21</var>officers, shareholders, members, or managers, must belong to holders of certificates who <br/>
<a id="pl.14.22"></a><var>14.22</var>are licensed in some state, and the partners, officers, shareholders, members, or managers, <br/>
<a id="pl.14.23"></a><var>14.23</var>whose principal place of business is in this state, and who perform professional services in <br/>
<a id="pl.14.24"></a><var>14.24</var>this state, must hold valid certificates issued under section 
         <statute_ref>326A.04</statute_ref> or the corresponding <br/>
<a id="pl.14.25"></a><var>14.25</var>provision of prior law. Although firms may include nonlicensee owners, the firm and <br/>
<a id="pl.14.26"></a><var>14.26</var>its ownership must comply with rules adopted by the board. The firm shall register all <br/>
<a id="pl.14.27"></a><var>14.27</var>nonlicensee owners with the state board as set forth by rule. An individual who has been <br/>
<a id="pl.14.28"></a><var>14.28</var>granted practice privileges under section 326A.14 and who performs services for which <br/>
<a id="pl.14.29"></a><var>14.29</var>a firm permit is required under section 326A.14, subdivision 1, paragraph (d), is not <br/>
<a id="pl.14.30"></a><var>14.30</var>required to obtain a certificate from the board under section 326A.04.<br/>
<a id="pl.14.31"></a><var>14.31</var>(c) A CPA firm may include nonlicensee owners provided that:<br/>
<a id="pl.14.32"></a><var>14.32</var>(1) the firm designates a licensee of this state, or in the case of a firm that must <br/>
<a id="pl.14.33"></a><var>14.33</var>have a permit according to section 326A.14, subdivision 1, paragraph (d), a licensee of <br/>
<a id="pl.14.34"></a><var>14.34</var>another state who meets the requirements in section 326A.14, subdivision 1, paragraph <br/>
<a id="pl.15.1"></a><var>15.1</var>(a) or (b), who is responsible for the proper registration of the firm and identifies that <br/>
<a id="pl.15.2"></a><var>15.2</var>individual to the board;<br/>
<a id="pl.15.3"></a><var>15.3</var>(2) all nonlicensee owners are persons of good moral character and are active <br/>
<a id="pl.15.4"></a><var>15.4</var>individual participants in the CPA firm or affiliated entities; and<br/>
<a id="pl.15.5"></a><var>15.5</var>(3) the firm complies with other requirements imposed by the board in rule.<br/>
<a id="pl.15.6"></a><var>15.6</var>(d) An individual licensee and any individual granted practice privileges under <br/>
<a id="pl.15.7"></a><var>15.7</var>section 326A.14 who is responsible for supervising attest or compilation services and <br/>
<a id="pl.15.8"></a><var>15.8</var>signs or authorizes someone to sign the accountant's report on the financial statements <br/>
<a id="pl.15.9"></a><var>15.9</var>on behalf of the firm, shall meet the competency requirements set out in the professional <br/>
<a id="pl.15.10"></a><var>15.10</var>standards for such services.<br/>
<a id="pl.15.11"></a><var>15.11</var>(e) An individual licensee and any individual granted practice privileges under <br/>
<a id="pl.15.12"></a><var>15.12</var>section 326A.14 who signs or authorizes someone to sign the accountants' report on <br/>
<a id="pl.15.13"></a><var>15.13</var>the financial statements on behalf of the firm shall meet the competency requirement of <br/>
<a id="pl.15.14"></a><var>15.14</var>paragraph (d).<br/>
<br/>
<a id="bill.0.17.0"></a><a id="pl.15.15"></a><var>15.15</var>    Sec. 17. Minnesota Statutes 2006, section 326A.05, subdivision 4, is amended to read:<br/>
<a id="pl.15.16"></a><var>15.16</var>    Subd. 4. <b>Initial issuance or renewal.</b> An applicant for initial issuance or renewal of <br/>
<a id="pl.15.17"></a><var>15.17</var>a permit to practice under this section shall register each office of the firm within this state <br/>
<a id="pl.15.18"></a><var>15.18</var>with the board and to show that all attest and compilation services rendered in this state <br/>
<a id="pl.15.19"></a><var>15.19</var>are under the charge of a person holding a valid certificate, or the corresponding provision <br/>
<a id="pl.15.20"></a><var>15.20</var>of prior law issued by this state or another state.<br/>
<br/>
<a id="bill.0.18.0"></a><a id="pl.15.21"></a><var>15.21</var>    Sec. 18. Minnesota Statutes 2006, section 326A.05, subdivision 5, is amended to read:<br/>
<a id="pl.15.22"></a><var>15.22</var>    Subd. 5. <b>Fees.</b> The board shall charge a fee for each application for initial issuance <br/>
<a id="pl.15.23"></a><var>15.23</var>or renewal of a permit under this section. A firm that is required to hold a permit under <br/>
<a id="pl.15.24"></a><var>15.24</var>this section and has one or more offices located in another state shall pay an initial permit <br/>
<a id="pl.15.25"></a><var>15.25</var>issuance fee of $100 and an annual renewal fee of $68.<br/>
<br/>
<a id="bill.0.19.0"></a><a id="pl.15.26"></a><var>15.26</var>    Sec. 19. Minnesota Statutes 2006, section 326A.06, is amended to read:<br/>
<a id="pl.15.27"></a><var>15.27</var><b>326A.06 </b><b>ACCOUNTING PRACTITIONER; REGISTRATION; </b><br/>
<a id="pl.15.28"></a><var>15.28</var><b>CERTIFICATE</b><b> LPA'S AND ACCOUNTING PRACTITIONERS</b><b>.</b><br/>
<a id="pl.15.29"></a><var>15.29</var>(a) All licensed public accountants (LPAs) who are actively licensed by the state <br/>
<a id="pl.15.30"></a><var>15.30</var>board on December 31, 2002, shall be issued a certified public accountant certificate. <br/>
<a id="pl.15.31"></a><var>15.31</var>LPAs are those accountants who were eligible for licensure on July 1, 1979, under the <br/>
<a id="pl.15.32"></a><var>15.32</var>law in effect on that date and who were issued a license as a licensed public accountant <br/>
<a id="pl.15.33"></a><var>15.33</var>by the board at that time.<br/>
<a id="pl.16.1"></a><var>16.1</var>(b) By July 1, 2004, The board shall implement a voluntary registration of <br/>
<a id="pl.16.2"></a><var>16.2</var>accounting practitioners. The board shall prescribe by rule the limitations of practice, <br/>
<a id="pl.16.3"></a><var>16.3</var>educational preparation, examination, registration, fees, peer review, and continuing <br/>
<a id="pl.16.4"></a><var>16.4</var>education requirements for the registration. The board shall consult with the University of <br/>
<a id="pl.16.5"></a><var>16.5</var>Minnesota, the Minnesota State Colleges and Universities, the Minnesota Association of <br/>
<a id="pl.16.6"></a><var>16.6</var>Private Postsecondary Schools, the Private College Council, the Minnesota Association <br/>
<a id="pl.16.7"></a><var>16.7</var>of Public Accountants, and other organizations as appropriate in the implementation <br/>
<a id="pl.16.8"></a><var>16.8</var>of this section.<br/>
<br/>
<a id="bill.0.20.0"></a><a id="pl.16.9"></a><var>16.9</var>    Sec. 20. Minnesota Statutes 2006, section 326A.07, is amended to read:<br/>
<a id="pl.16.10"></a><var>16.10</var><b>326A.07 APPOINTMENT OF SECRETARY OF STATE AS AGENT.</b><br/>
<a id="pl.16.11"></a><var>16.11</var>Application by a person or a firm not a resident of this state for a certificate <br/>
<a id="pl.16.12"></a><var>16.12</var>issued under section 326A.04 or a permit issued under section 326A.05 shall constitute <br/>
<a id="pl.16.13"></a><var>16.13</var>appointment of the secretary of state as the applicant's agent upon whom process may be <br/>
<a id="pl.16.14"></a><var>16.14</var>served in any action or proceeding against the applicant arising out of any transaction <br/>
<a id="pl.16.15"></a><var>16.15</var>or operation connected with or incidental to services performed by the applicant while <br/>
<a id="pl.16.16"></a><var>16.16</var>a licensee within this state.<br/>
<br/>
<a id="bill.0.21.0"></a><a id="pl.16.17"></a><var>16.17</var>    Sec. 21. Minnesota Statutes 2006, section 326A.08, subdivision 2, is amended to read:<br/>
<a id="pl.16.18"></a><var>16.18</var>    Subd. 2. <b>Hearings conducted under chapter 14.</b> Except as otherwise described in <br/>
<a id="pl.16.19"></a><var>16.19</var>this section, all hearings shall be conducted in accordance with chapter 14.<br/>
<a id="pl.16.20"></a><var>16.20</var>Hearings conducted under chapter 14 that relate to a disciplinary action must be closed <br/>
<a id="pl.16.21"></a><var>16.21</var>to the public, except for individuals whose presence is necessary for conducting the <br/>
<a id="pl.16.22"></a><var>16.22</var>proceeding or providing testimony or evidence. The hearing record and the findings, <br/>
<a id="pl.16.23"></a><var>16.23</var>conclusions, report, and order or recommendation of the administrative law judge are <br/>
<a id="pl.16.24"></a><var>16.24</var>private data on individuals, as defined in section 13.02, until the board issues its final order <br/>
<a id="pl.16.25"></a><var>16.25</var>or the report or order of the administrative law judge becomes the final decision in the case.<br/>
<br/>
<a id="bill.0.22.0"></a><a id="pl.16.26"></a><var>16.26</var>    Sec. 22. Minnesota Statutes 2006, section 326A.08, subdivision 4, is amended to read:<br/>
<a id="pl.16.27"></a><var>16.27</var>    Subd. 4. <b>Cease and desist orders.</b> (a) The board, or the complaint committee if <br/>
<a id="pl.16.28"></a><var>16.28</var>authorized by the board, may issue and have served upon a certificate holder, a permit <br/>
<a id="pl.16.29"></a><var>16.29</var>holder, a registration holder, a person with practice privileges granted under section <br/>
<statute_ref><a id="pl.16.30"></a><var>16.30</var>326A.14
         </statute_ref>, a person  who has previously been subject to a disciplinary order by the board, <br/>
<a id="pl.16.31"></a><var>16.31</var>or an unlicensed firm or person an order requiring the person or firm to cease and desist <br/>
<a id="pl.16.32"></a><var>16.32</var>from the act or practice constituting a violation of the statute, rule, or order. The order <br/>
<a id="pl.16.33"></a><var>16.33</var>must be calculated to give reasonable notice of the rights of the person or firm to request a <br/>
<a id="pl.17.1"></a><var>17.1</var>hearing and must state the reasons for the entry of the order. No order may be issued until <br/>
<a id="pl.17.2"></a><var>17.2</var>an investigation of the facts has been conducted pursuant to section 
         <statute_ref>214.10</statute_ref>. <br/>
<a id="pl.17.3"></a><var>17.3</var>(b) Service of the order is effective when the order is served on the person, firm, or <br/>
<a id="pl.17.4"></a><var>17.4</var>counsel of record personally, or by certified mail to the most recent address provided to <br/>
<a id="pl.17.5"></a><var>17.5</var>the board for the person, firm, or counsel of record.<br/>
<a id="pl.17.6"></a><var>17.6</var>(c) Unless otherwise agreed by the board, or the complaint committee if authorized <br/>
<a id="pl.17.7"></a><var>17.7</var>by the board, and the person or firm requesting the hearing, the hearing must be held no <br/>
<a id="pl.17.8"></a><var>17.8</var>later than 30 days after the request for the hearing is received by the board.<br/>
<a id="pl.17.9"></a><var>17.9</var>(d) The administrative law judge shall issue a report within 30 days of the close of <br/>
<a id="pl.17.10"></a><var>17.10</var>the contested case hearing record, notwithstanding Minnesota Rules, part 1400.8100, <br/>
<a id="pl.17.11"></a><var>17.11</var>subpart 3. Within 30 days after receiving the report and any exceptions to it, the board <br/>
<a id="pl.17.12"></a><var>17.12</var>shall issue a further order vacating, modifying, or making permanent the cease and desist <br/>
<a id="pl.17.13"></a><var>17.13</var>orders as the facts require.<br/>
<a id="pl.17.14"></a><var>17.14</var>(e) If no hearing is requested within 30 days of service of the order, the order <br/>
<a id="pl.17.15"></a><var>17.15</var>becomes final and remains in effect until it is modified or vacated by the board.<br/>
<a id="pl.17.16"></a><var>17.16</var>(f) If the person or firm to whom a cease and desist order is issued fails to appear at <br/>
<a id="pl.17.17"></a><var>17.17</var>the hearing after being duly notified, the person or firm is in default and the proceeding <br/>
<a id="pl.17.18"></a><var>17.18</var>may be determined against that person or firm upon consideration of the cease and desist <br/>
<a id="pl.17.19"></a><var>17.19</var>order, the allegations of which may be considered to be true.<br/>
<a id="pl.17.20"></a><var>17.20</var>(g) In lieu of or in addition to the order provided in paragraph (a), the board may <br/>
<a id="pl.17.21"></a><var>17.21</var>require the person or firm to provide to the board a true and complete list of the person's <br/>
<a id="pl.17.22"></a><var>17.22</var>or firm's clientele so that they can, if deemed necessary, be notified of the board's action. <br/>
<a id="pl.17.23"></a><var>17.23</var>Failure to do so, or to provide an incomplete or inaccurate list, is an act discreditable.<br/>
<br/>
<a id="bill.0.23.0"></a><a id="pl.17.24"></a><var>17.24</var>    Sec. 23. Minnesota Statutes 2006, section 326A.08, subdivision 5, is amended to read:<br/>
<a id="pl.17.25"></a><var>17.25</var>    Subd. 5. <b>Actions against persons or firms.</b> (a) The board may, by order, deny, <br/>
<a id="pl.17.26"></a><var>17.26</var>refuse to renew, suspend, temporarily suspend, or revoke the application, or practice <br/>
<a id="pl.17.27"></a><var>17.27</var>privileges, registration or certificate of a person or firm; censure or reprimand the person <br/>
<a id="pl.17.28"></a><var>17.28</var>or firm; prohibit the person or firm from preparing tax returns or reporting on financial <br/>
<a id="pl.17.29"></a><var>17.29</var>statements; limit the scope of practice of any licensee; limit privileges under section <br/>
<a id="pl.17.30"></a><var>17.30</var>326A.14; refuse to permit a person to sit for examination; or refuse to release the person's <br/>
<a id="pl.17.31"></a><var>17.31</var>examination grades if the board finds that the order is in the public interest and that, based <br/>
<a id="pl.17.32"></a><var>17.32</var>on a preponderance of the evidence presented, the person or firm:<br/>
<a id="pl.17.33"></a><var>17.33</var>(1) has violated a statute, rule, or order that the board has issued or is empowered <br/>
<a id="pl.17.34"></a><var>17.34</var>to enforce;<br/>
<a id="pl.18.1"></a><var>18.1</var>(2) has engaged in conduct or acts that are fraudulent, deceptive, or dishonest <br/>
<a id="pl.18.2"></a><var>18.2</var>whether or not the conduct or acts relate to performing or offering to perform professional <br/>
<a id="pl.18.3"></a><var>18.3</var>services, providing that the fraudulent, deceptive, or dishonest conduct or acts reflect <br/>
<a id="pl.18.4"></a><var>18.4</var>adversely on the person's or firm's ability or fitness to provide professional services;<br/>
<a id="pl.18.5"></a><var>18.5</var>(3) has engaged in conduct or acts that are negligent or otherwise in violation of <br/>
<a id="pl.18.6"></a><var>18.6</var>the standards established by board rule, where the conduct or acts relate to providing <br/>
<a id="pl.18.7"></a><var>18.7</var>professional services, including in the filing or failure to file the licensee's income tax <br/>
<a id="pl.18.8"></a><var>18.8</var>returns;<br/>
<a id="pl.18.9"></a><var>18.9</var>(4) has been convicted of, has pled guilty or nolo contendere to, or has been <br/>
<a id="pl.18.10"></a><var>18.10</var>sentenced as a result of the commission of a felony or crime, an element of which is <br/>
<a id="pl.18.11"></a><var>18.11</var>dishonesty or fraud; has been shown to have or admitted to having engaged in acts or <br/>
<a id="pl.18.12"></a><var>18.12</var>practices tending to show that the person or firm is incompetent; or has engaged in conduct <br/>
<a id="pl.18.13"></a><var>18.13</var>reflecting adversely on the person's or firm's ability or fitness to provide professional <br/>
<a id="pl.18.14"></a><var>18.14</var>services, whether or not a conviction was obtained or a plea was entered or withheld and <br/>
<a id="pl.18.15"></a><var>18.15</var>whether or not dishonesty or fraud was an element of the conduct;<br/>
<a id="pl.18.16"></a><var>18.16</var>(5) employed fraud or deception in obtaining a certificate, permit, registration, <br/>
<a id="pl.18.17"></a><var>18.17</var>practice privileges, renewal, or reinstatement or in passing all or a portion of the <br/>
<a id="pl.18.18"></a><var>18.18</var>examination;<br/>
<a id="pl.18.19"></a><var>18.19</var>(6) has had the person's or firm's permit, registration, practice privileges, certificate, <br/>
<a id="pl.18.20"></a><var>18.20</var>right to examine, or other similar authority revoked, suspended, canceled, limited, or not <br/>
<a id="pl.18.21"></a><var>18.21</var>renewed for cause, or has committed unprofessional acts for which the person or firm was <br/>
<a id="pl.18.22"></a><var>18.22</var>otherwise disciplined or sanctioned, including, but not limited to, being ordered to or <br/>
<a id="pl.18.23"></a><var>18.23</var>agreeing to cease and desist from prescribed conduct, in any state or any foreign country;<br/>
<a id="pl.18.24"></a><var>18.24</var>(7) has had the person's or firm's right to practice before any federal, state, or <br/>
<a id="pl.18.25"></a><var>18.25</var>other government agency, or Public Company Accounting Oversight Board revoked, <br/>
<a id="pl.18.26"></a><var>18.26</var>suspended, canceled, limited, or not renewed for cause, or has committed unprofessional <br/>
<a id="pl.18.27"></a><var>18.27</var>acts for which the person or firm was otherwise disciplined or sanctioned, including, but <br/>
<a id="pl.18.28"></a><var>18.28</var>not limited to, being ordered to or agreeing to cease and desist from prescribed conduct;<br/>
<a id="pl.18.29"></a><var>18.29</var>(8) failed to meet any requirement for the issuance or renewal of the person's or <br/>
<a id="pl.18.30"></a><var>18.30</var>firm's certificate, registration or permit, or for practice privileges;<br/>
<a id="pl.18.31"></a><var>18.31</var>(9) with respect to temporary suspension orders, has committed an act, engaged in <br/>
<a id="pl.18.32"></a><var>18.32</var>conduct, or committed practices that may result or may have resulted, in the opinion of the <br/>
<a id="pl.18.33"></a><var>18.33</var>board or the complaint committee if authorized by the board, in an immediate threat to <br/>
<a id="pl.18.34"></a><var>18.34</var>the public; or<br/>
<a id="pl.19.1"></a><var>19.1</var>(10) has engaged in any conduct reflecting adversely upon the person's or firm's <br/>
<a id="pl.19.2"></a><var>19.2</var>fitness to perform services while a licensee, individual granted privileges under section <br/>
<statute_ref><a id="pl.19.3"></a><var>19.3</var>326A.14
         </statute_ref>, or a person registered under section 
         <statute_ref>326A.06, paragraph (b)</statute_ref>.; or <br/>
<a id="pl.19.4"></a><var>19.4</var>(11) has, prior to a voluntary surrender of a certificate or permit to the board, <br/>
<a id="pl.19.5"></a><var>19.5</var>engaged in conduct which at any time resulted in the discipline or sanction described <br/>
<a id="pl.19.6"></a><var>19.6</var>in clause (6) or (7).<br/>
<a id="pl.19.7"></a><var>19.7</var>(b) In lieu of or in addition to any remedy provided in paragraph (a), the board, <br/>
<a id="pl.19.8"></a><var>19.8</var>or the complaint committee if authorized by the board, may require, as a condition of <br/>
<a id="pl.19.9"></a><var>19.9</var>continued possession of a certificate, a registration, or practice privileges, termination <br/>
<a id="pl.19.10"></a><var>19.10</var>of suspension, reinstatement of permit, registration of a person or firm or of practice <br/>
<a id="pl.19.11"></a><var>19.11</var>privileges under section 
         <statute_ref>326A.14</statute_ref>, a certificate, an examination, or release of examination <br/>
<a id="pl.19.12"></a><var>19.12</var>grades, that the person or firm: <br/>
<a id="pl.19.13"></a><var>19.13</var>(1) submit to a peer review of the person's or firm's ability, skills, or quality of work, <br/>
<a id="pl.19.14"></a><var>19.14</var>conducted in a fashion and by persons, entity, or entities as required by the board; and<br/>
<a id="pl.19.15"></a><var>19.15</var>(2) complete to the satisfaction of the board continuing professional education <br/>
<a id="pl.19.16"></a><var>19.16</var>courses specified by the board.<br/>
<a id="pl.19.17"></a><var>19.17</var>(c) Service of the order is effective if the order is served on the person, firm, or <br/>
<a id="pl.19.18"></a><var>19.18</var>counsel of record personally or by certified mail to the most recent address provided to <br/>
<a id="pl.19.19"></a><var>19.19</var>the board for the person, firm, or counsel of record. The order shall state the reasons <br/>
<a id="pl.19.20"></a><var>19.20</var>for the entry of the order.<br/>
<a id="pl.19.21"></a><var>19.21</var>(d) All hearings required by this subdivision must be conducted in accordance <br/>
<a id="pl.19.22"></a><var>19.22</var>with chapter 14 except with respect to temporary suspension orders as provided for in <br/>
<a id="pl.19.23"></a><var>19.23</var>subdivision 6.<br/>
<a id="pl.19.24"></a><var>19.24</var>(e) In addition to the remedies authorized by this subdivision, the board, or the <br/>
<a id="pl.19.25"></a><var>19.25</var>complaint committee if authorized by the board, may enter into an agreement with the <br/>
<a id="pl.19.26"></a><var>19.26</var>person or firm for corrective action and may unilaterally issue a warning to a person or <br/>
<a id="pl.19.27"></a><var>19.27</var>firm.<br/>
<a id="pl.19.28"></a><var>19.28</var>(f) The board shall not use agreements for corrective action or warnings in any <br/>
<a id="pl.19.29"></a><var>19.29</var>situation where the person or firm has been convicted of or pled guilty or nolo contendere <br/>
<a id="pl.19.30"></a><var>19.30</var>to a felony or crime and the felony or crime is the basis of the board's action against the <br/>
<a id="pl.19.31"></a><var>19.31</var>person or firm, where the conduct of the person or firm indicates a pattern of related <br/>
<a id="pl.19.32"></a><var>19.32</var>violations of paragraph (a) or the rules of the board, or where the board concludes that <br/>
<a id="pl.19.33"></a><var>19.33</var>the conduct of the person or firm will not be deterred other than by disciplinary action <br/>
<a id="pl.19.34"></a><var>19.34</var>under this subdivision or subdivision 4 or 6.<br/>
<a id="pl.19.35"></a><var>19.35</var>(g) Agreements for corrective action may be used by the board, or the complaint <br/>
<a id="pl.19.36"></a><var>19.36</var>committee if authorized by the board, where the violation committed by the person or firm <br/>
<a id="pl.20.1"></a><var>20.1</var>does not warrant disciplinary action pursuant to this subdivision or subdivision 4 or 6, but <br/>
<a id="pl.20.2"></a><var>20.2</var>where the board, or the complaint committee if authorized by the board, determines that <br/>
<a id="pl.20.3"></a><var>20.3</var>corrective action is required to prevent further such violations and to otherwise protect <br/>
<a id="pl.20.4"></a><var>20.4</var>the public. Warnings may be used by the board, or the complaint committee if authorized <br/>
<a id="pl.20.5"></a><var>20.5</var>by the board, where the violation of the person or firm is de minimus, does not warrant <br/>
<a id="pl.20.6"></a><var>20.6</var>disciplinary action under this subdivision or subdivision 4 or 6, and does not require <br/>
<a id="pl.20.7"></a><var>20.7</var>corrective action to protect the public.<br/>
<a id="pl.20.8"></a><var>20.8</var>(h) Agreements for corrective action must not be considered disciplinary action <br/>
<a id="pl.20.9"></a><var>20.9</var>against the person's or firm's application, permit, registration or certificate, or practice <br/>
<a id="pl.20.10"></a><var>20.10</var>privileges under section 
         <statute_ref>326A.14</statute_ref>. However, agreements for corrective action are public <br/>
<a id="pl.20.11"></a><var>20.11</var>data. Warnings must not be considered disciplinary action against the person's or firm's <br/>
<a id="pl.20.12"></a><var>20.12</var>application, permit, registration, or certificate or person's practice privileges and are <br/>
<a id="pl.20.13"></a><var>20.13</var>private data. <br/>
<br/>
<a id="bill.0.24.0"></a><a id="pl.20.14"></a><var>20.14</var>    Sec. 24. Minnesota Statutes 2006, section 326A.08, subdivision 6, is amended to read:<br/>
<a id="pl.20.15"></a><var>20.15</var>    Subd. 6. <b>Temporary suspension </b><b>order</b><b> provisions</b><b>.</b> (a) When the board, or the <br/>
<a id="pl.20.16"></a><var>20.16</var>complaint committee if authorized by the board, issues a temporary suspension order, the <br/>
<a id="pl.20.17"></a><var>20.17</var>suspension is in effect upon service of a written order on the person, firm, or counsel of <br/>
<a id="pl.20.18"></a><var>20.18</var>record as provided in subdivision 4, paragraph (b), specifying the statute, rule, or order <br/>
<a id="pl.20.19"></a><var>20.19</var>violated. The order remains in effect until the board issues a final order in the matter after <br/>
<a id="pl.20.20"></a><var>20.20</var>a hearing or upon agreement between the board and the person or firm.<br/>
<a id="pl.20.21"></a><var>20.21</var>(b) The order may prohibit the person or firm from providing professional services <br/>
<a id="pl.20.22"></a><var>20.22</var>in whole or in part, as the facts may require, and may condition the end of such suspension <br/>
<a id="pl.20.23"></a><var>20.23</var>on compliance with a statute, rule, or order that the board has issued or is empowered <br/>
<a id="pl.20.24"></a><var>20.24</var>to enforce.<br/>
<a id="pl.20.25"></a><var>20.25</var>(c) The order must set forth the rights to hearing contained in this section and must <br/>
<a id="pl.20.26"></a><var>20.26</var>state the reasons for the entry of order.<br/>
<a id="pl.20.27"></a><var>20.27</var>(d) Within ten days after service of the order, the person or firm may request a <br/>
<a id="pl.20.28"></a><var>20.28</var>hearing in writing. The board shall hold a hearing before its own members within five <br/>
<a id="pl.20.29"></a><var>20.29</var>working days of a receipt of a request for hearing or within five working days of receipt of <br/>
<a id="pl.20.30"></a><var>20.30</var>a request for hearing on the sole issue of whether there is a reasonable basis to continue, <br/>
<a id="pl.20.31"></a><var>20.31</var>modify, or lift the temporary suspension. This hearing is not subject to chapter 14. <br/>
<a id="pl.20.32"></a><var>20.32</var>Evidence presented by the board or the person or firm shall be in affidavit form only. The <br/>
<a id="pl.20.33"></a><var>20.33</var>person, firm, or counsel of record may appear for oral argument.<br/>
<a id="pl.20.34"></a><var>20.34</var>(e) Within five working days after the hearing, the board shall issue its order and, <br/>
<a id="pl.20.35"></a><var>20.35</var>if the suspension is continued, schedule a contested case hearing within 30 days after <br/>
<a id="pl.21.1"></a><var>21.1</var>issuance of the order. The administrative law judge shall issue a report within 30 days <br/>
<a id="pl.21.2"></a><var>21.2</var>after closing of the contested case hearing record, notwithstanding the provisions of <br/>
<a id="pl.21.3"></a><var>21.3</var>Minnesota Rules, part 1400.8100, subpart 3. The board shall issue a final order within 30 <br/>
<a id="pl.21.4"></a><var>21.4</var>days after receipt of that report.<br/>
<br/>
<a id="bill.0.25.0"></a><a id="pl.21.5"></a><var>21.5</var>    Sec. 25. Minnesota Statutes 2006, section 326A.08, subdivision 7, is amended to read:<br/>
<a id="pl.21.6"></a><var>21.6</var>    Subd. 7. <b>Violation; penalties; costs of proceeding.</b> (a) The board may impose a <br/>
<a id="pl.21.7"></a><var>21.7</var>civil penalty not to exceed $2,000 per violation upon a person or a firm that violates an <br/>
<a id="pl.21.8"></a><var>21.8</var>order, statute, or rule that the board has issued or is empowered to enforce.<br/>
<a id="pl.21.9"></a><var>21.9</var>(b) The board may, in addition, impose a fee to reimburse the board for all or <br/>
<a id="pl.21.10"></a><var>21.10</var>part of the cost of the proceedings, including reasonable investigative costs, resulting <br/>
<a id="pl.21.11"></a><var>21.11</var>in disciplinary or corrective action authorized by this section, the imposition of civil <br/>
<a id="pl.21.12"></a><var>21.12</var>penalties, or the issuance of a cease and desist order. The fee may be imposed when the <br/>
<a id="pl.21.13"></a><var>21.13</var>board shows that the position of the person or firm that violates a statute, rule, or order <br/>
<a id="pl.21.14"></a><var>21.14</var>that the board has issued or is empowered to enforce is not substantially justified, unless <br/>
<a id="pl.21.15"></a><var>21.15</var>special circumstances make an award unjust, notwithstanding the provisions of Minnesota <br/>
<a id="pl.21.16"></a><var>21.16</var>Rules, part 1400.8401. The costs include, but are not limited to, the amount paid by the <br/>
<a id="pl.21.17"></a><var>21.17</var>board for services from the office of administrative hearings, attorney and reasonable <br/>
<a id="pl.21.18"></a><var>21.18</var>investigative fees, court reporters, witnesses, reproduction of records, board members' per <br/>
<a id="pl.21.19"></a><var>21.19</var>diem compensation, board staff time, and expense incurred by board members and staff.<br/>
<a id="pl.21.20"></a><var>21.20</var>(c) All hearings required by this subdivision must be conducted in accordance with <br/>
<a id="pl.21.21"></a><var>21.21</var>chapter 14.<br/>
<br/>
<a id="bill.0.26.0"></a><a id="pl.21.22"></a><var>21.22</var>    Sec. 26. Minnesota Statutes 2006, section 326A.08, subdivision 8, is amended to read:<br/>
<a id="pl.21.23"></a><var>21.23</var>    Subd. 8. <b>Other </b><b>persons and entities subject to discipline.</b> Any person or entity <br/>
<a id="pl.21.24"></a><var>21.24</var>who prepares or reports on financial statements or schedules for a client for a fee is subject <br/>
<a id="pl.21.25"></a><var>21.25</var>to this section and the practice of the person or entity may be disciplined by the boards <br/>
<a id="pl.21.26"></a><var>21.26</var>board as provided for in this section. The board may discipline a person or entity based on <br/>
<a id="pl.21.27"></a><var>21.27</var>violations of this chapter, the board's rules, or misrepresentations made by the person or <br/>
<a id="pl.21.28"></a><var>21.28</var>entity regarding the work the person or entity performed.<br/>
<br/>
<a id="bill.0.27.0"></a><a id="pl.21.29"></a><var>21.29</var>    Sec. 27. Minnesota Statutes 2006, section 326A.08, subdivision 9, is amended to read:<br/>
<a id="pl.21.30"></a><var>21.30</var>    Subd. 9. <b>Notification of other states.</b> In any case where the board renders a <br/>
<a id="pl.21.31"></a><var>21.31</var>decision imposing discipline against a person or firm, the board shall examine its records <br/>
<a id="pl.21.32"></a><var>21.32</var>to determine whether the person or firm holds a certificate or a permit in any other state. If <br/>
<a id="pl.22.1"></a><var>22.1</var>so, the board shall notify the board of accountancy of the other state of its decision, by <br/>
<a id="pl.22.2"></a><var>22.2</var>mail or by other reasonable means, within 45 days of the decision becoming final.<br/>
<br/>
<a id="bill.0.28.0"></a><a id="pl.22.3"></a><var>22.3</var>    Sec. 28. Minnesota Statutes 2006, section 326A.10, is amended to read:<br/>
<a id="pl.22.4"></a><var>22.4</var><b>326A.10 UNLAWFUL ACTS.</b><br/>
<a id="pl.22.5"></a><var>22.5</var>(a) Only a licensee and individuals who have been granted practice privileges <br/>
<a id="pl.22.6"></a><var>22.6</var>under section 326A.14 may issue a report on financial statements of any person, firm, <br/>
<a id="pl.22.7"></a><var>22.7</var>organization, or governmental unit that results from providing attest services, or offer to <br/>
<a id="pl.22.8"></a><var>22.8</var>render or render any attest service. Only a certified public accountant, an individual who <br/>
<a id="pl.22.9"></a><var>22.9</var>has been granted practice privileges under section 326A.14, a CPA firm, or, to the extent <br/>
<a id="pl.22.10"></a><var>22.10</var>permitted by board rule, a person registered under section 
         <statute_ref>326A.06, paragraph (b)</statute_ref>, may <br/>
<a id="pl.22.11"></a><var>22.11</var>issue a report on financial statements of any person, firm, organization, or governmental <br/>
<a id="pl.22.12"></a><var>22.12</var>unit that results from providing compilation services or offer to render or render any <br/>
<a id="pl.22.13"></a><var>22.13</var>compilation service. These restrictions do not prohibit any act of a public official or <br/>
<a id="pl.22.14"></a><var>22.14</var>public employee in the performance of that person's duties or prohibit the performance <br/>
<a id="pl.22.15"></a><var>22.15</var>by any nonlicensee of other services involving the use of accounting skills, including <br/>
<a id="pl.22.16"></a><var>22.16</var>the preparation of tax returns, management advisory services, and the preparation of <br/>
<a id="pl.22.17"></a><var>22.17</var>financial statements without the issuance of reports on them. Nonlicensees may prepare <br/>
<a id="pl.22.18"></a><var>22.18</var>financial statements and issue nonattest transmittals or information on them which do not <br/>
<a id="pl.22.19"></a><var>22.19</var>purport to be in compliance with the Statements on Standards for Accounting and Review <br/>
<a id="pl.22.20"></a><var>22.20</var>Services (SSARS). Nonlicensees registered under section 
         <statute_ref>326A.06, paragraph (b)</statute_ref>, may, <br/>
<a id="pl.22.21"></a><var>22.21</var>to the extent permitted by board rule, prepare financial statements and issue nonattest <br/>
<a id="pl.22.22"></a><var>22.22</var>transmittals or information on them. <br/>
<a id="pl.22.23"></a><var>22.23</var>(b) Licensees and individuals who have been granted practice privileges under <br/>
<a id="pl.22.24"></a><var>22.24</var>section 326A.14 performing attest or compilation services must provide those services in <br/>
<a id="pl.22.25"></a><var>22.25</var>accordance with professional standards. To the extent permitted by board rule, registered <br/>
<a id="pl.22.26"></a><var>22.26</var>accounting practitioners performing compilation services must provide those services in <br/>
<a id="pl.22.27"></a><var>22.27</var>accordance with standards specified in board rule.<br/>
<a id="pl.22.28"></a><var>22.28</var>(c) A person who does not hold a valid certificate issued under section 
         <statute_ref>326A.04</statute_ref> <br/>
<a id="pl.22.29"></a><var>22.29</var>or a practice privilege granted under section 326A.14 shall not use or assume the title <br/>
<a id="pl.22.30"></a><var>22.30</var>"certified public accountant," the abbreviation "CPA," or any other title, designation, <br/>
<a id="pl.22.31"></a><var>22.31</var>words, letters, abbreviation, sign, card, or device tending to indicate that the person is a <br/>
<a id="pl.22.32"></a><var>22.32</var>certified public accountant. <br/>
<a id="pl.22.33"></a><var>22.33</var>(d) A firm shall not provide attest services or assume or use the title "certified public <br/>
<a id="pl.22.34"></a><var>22.34</var>accountants," the abbreviation "CPAs," or any other title, designation, words, letters, <br/>
<a id="pl.22.35"></a><var>22.35</var>abbreviation, sign, card, or device tending to indicate that the firm is a CPA firm unless (1) <br/>
<a id="pl.23.1"></a><var>23.1</var>the firm holds a valid permit issued under has complied with section 
         <statute_ref>326A.05</statute_ref>, and (2) <br/>
<a id="pl.23.2"></a><var>23.2</var>ownership of the firm is in accordance with this chapter and rules adopted by the board. <br/>
<a id="pl.23.3"></a><var>23.3</var>(e) A person or firm that does not hold a valid certificate or permit issued under <br/>
<a id="pl.23.4"></a><var>23.4</var>section 
         <statute_ref>326A.04</statute_ref> or 
         <statute_ref>326A.05</statute_ref> or has not otherwise complied with section 326A.04 or <br/>
<a id="pl.23.5"></a><var>23.5</var>326A.05 as required in this chapter shall not assume or use the title "certified accountant," <br/>
<a id="pl.23.6"></a><var>23.6</var>"chartered accountant," "enrolled accountant," "licensed accountant," "registered <br/>
<a id="pl.23.7"></a><var>23.7</var>accountant," "accredited accountant," "accounting practitioner," "public accountant," <br/>
<a id="pl.23.8"></a><var>23.8</var>"licensed public accountant," or any other title or designation likely to be confused <br/>
<a id="pl.23.9"></a><var>23.9</var>with the title "certified public accountant," or use any of the abbreviations "CA," "LA," <br/>
<a id="pl.23.10"></a><var>23.10</var>"RA," "AA," "PA," "AP," "LPA," or similar abbreviation likely to be confused with the <br/>
<a id="pl.23.11"></a><var>23.11</var>abbreviation "CPA." The title "enrolled agent" or "EA" may only be used by individuals <br/>
<a id="pl.23.12"></a><var>23.12</var>so designated by the Internal Revenue Service. <br/>
<a id="pl.23.13"></a><var>23.13</var>(f) Persons registered under section 
         <statute_ref>326A.06, paragraph (b)</statute_ref>, may use the title <br/>
<a id="pl.23.14"></a><var>23.14</var>"registered accounting practitioner" or the abbreviation "RAP." A person who does not <br/>
<a id="pl.23.15"></a><var>23.15</var>hold a valid registration under section 
         <statute_ref>326A.06, paragraph (b)</statute_ref>, shall not assume or use <br/>
<a id="pl.23.16"></a><var>23.16</var>such title or abbreviation. <br/>
<a id="pl.23.17"></a><var>23.17</var>(g) Except to the extent permitted in paragraph (a), nonlicensees may not use <br/>
<a id="pl.23.18"></a><var>23.18</var>language in any statement relating to the financial affairs of a person or entity that is <br/>
<a id="pl.23.19"></a><var>23.19</var>conventionally used by licensees in reports on financial statements. In this regard, the <br/>
<a id="pl.23.20"></a><var>23.20</var>board shall issue by rule safe harbor language that nonlicensees may use in connection <br/>
<a id="pl.23.21"></a><var>23.21</var>with such financial information. A person or firm that does not hold a valid certificate or <br/>
<a id="pl.23.22"></a><var>23.22</var>permit, or a registration issued under section 
         <statute_ref>326A.04</statute_ref>, 
         <statute_ref>326A.05</statute_ref>, or 
         <statute_ref>326A.06, paragraph <br/>
<a id="pl.23.23"></a><var>23.23</var>(b)
         </statute_ref>, or has not otherwise complied with section 326A.04 or 326A.05 as required in this <br/>
<a id="pl.23.24"></a><var>23.24</var>chapter shall not assume or use any title or designation that includes the word "accountant" <br/>
<a id="pl.23.25"></a><var>23.25</var>or "accounting" in connection with any other language, including the language of a report, <br/>
<a id="pl.23.26"></a><var>23.26</var>that implies that the person or firm holds such a certificate, permit, or registration or has <br/>
<a id="pl.23.27"></a><var>23.27</var>special competence as an accountant. A person or firm that does not hold a valid certificate <br/>
<a id="pl.23.28"></a><var>23.28</var>or permit issued under section 
         <statute_ref>326A.04</statute_ref> or 
         <statute_ref>326A.05</statute_ref> or has not otherwise complied with <br/>
<a id="pl.23.29"></a><var>23.29</var>section 326A.04 or 326A.05 as required in this chapter shall not assume or use any title <br/>
<a id="pl.23.30"></a><var>23.30</var>or designation that includes the word "auditor" in connection with any other language, <br/>
<a id="pl.23.31"></a><var>23.31</var>including the language of a report, that implies that the person or firm holds such a <br/>
<a id="pl.23.32"></a><var>23.32</var>certificate or permit or has special competence as an auditor. However, this paragraph <br/>
<a id="pl.23.33"></a><var>23.33</var>does not prohibit any officer, partner, member, manager, or employee of any firm or <br/>
<a id="pl.23.34"></a><var>23.34</var>organization from affixing that person's own signature to any statement in reference to the <br/>
<a id="pl.23.35"></a><var>23.35</var>financial affairs of such firm or organization with any wording designating the position, <br/>
<a id="pl.24.1"></a><var>24.1</var>title, or office that the person holds, nor prohibit any act of a public official or employee in <br/>
<a id="pl.24.2"></a><var>24.2</var>the performance of the person's duties as such. <br/>
<a id="pl.24.3"></a><var>24.3</var>(h) No person holding a certificate or registration or firm holding a permit under <br/>
<a id="pl.24.4"></a><var>24.4</var>this chapter shall use a professional or firm name or designation that is misleading about <br/>
<a id="pl.24.5"></a><var>24.5</var>the legal form of the firm, or about the persons who are partners, officers, members, <br/>
<a id="pl.24.6"></a><var>24.6</var>managers, or shareholders of the firm, or about any other matter. However, names of one <br/>
<a id="pl.24.7"></a><var>24.7</var>or more former partners, members, managers, or shareholders may be included in the <br/>
<a id="pl.24.8"></a><var>24.8</var>name of a firm or its successor.<br/>
<a id="pl.24.9"></a><var>24.9</var>(i) Paragraphs (a) to (h) do not apply to a person or firm holding a certification, <br/>
<a id="pl.24.10"></a><var>24.10</var>designation, degree, or license granted in a foreign country entitling the holder to engage <br/>
<a id="pl.24.11"></a><var>24.11</var>in the practice of public accountancy or its equivalent in that country, if:<br/>
<a id="pl.24.12"></a><var>24.12</var>(1) the activities of the person or firm in this state are limited to the provision of <br/>
<a id="pl.24.13"></a><var>24.13</var>professional services to persons or firms who are residents of, governments of, or business <br/>
<a id="pl.24.14"></a><var>24.14</var>entities of the country in which the person holds the entitlement;<br/>
<a id="pl.24.15"></a><var>24.15</var>(2) the person or firm performs no attest or compilation services and issues no reports <br/>
<a id="pl.24.16"></a><var>24.16</var>with respect to the financial statements of any other persons, firms, or governmental <br/>
<a id="pl.24.17"></a><var>24.17</var>units in this state; and<br/>
<a id="pl.24.18"></a><var>24.18</var>(3) the person or firm does not use in this state any title or designation other than <br/>
<a id="pl.24.19"></a><var>24.19</var>the one under which the person practices in the foreign country, followed by a translation <br/>
<a id="pl.24.20"></a><var>24.20</var>of the title or designation into English, if it is in a different language, and by the name <br/>
<a id="pl.24.21"></a><var>24.21</var>of the country.<br/>
<a id="pl.24.22"></a><var>24.22</var>(j) No holder of a certificate issued under section 
         <statute_ref>326A.04</statute_ref> may perform attest <br/>
<a id="pl.24.23"></a><var>24.23</var>services through any business form that does not hold a valid permit issued under section <br/>
<statute_ref><a id="pl.24.24"></a><var>24.24</var>326A.05
         </statute_ref>. <br/>
<a id="pl.24.25"></a><var>24.25</var>(k) No individual licensee may issue a report in standard form upon a compilation <br/>
<a id="pl.24.26"></a><var>24.26</var>of financial information through any form of business that does not hold a valid permit <br/>
<a id="pl.24.27"></a><var>24.27</var>issued under section 
         <statute_ref>326A.05</statute_ref>, unless the report discloses the name of the business through <br/>
<a id="pl.24.28"></a><var>24.28</var>which the individual is issuing the report, and the individual: <br/>
<a id="pl.24.29"></a><var>24.29</var>(1) signs the compilation report identifying the individual as a certified public <br/>
<a id="pl.24.30"></a><var>24.30</var>accountant;<br/>
<a id="pl.24.31"></a><var>24.31</var>(2) meets the competency requirement provided in applicable standards; and<br/>
<a id="pl.24.32"></a><var>24.32</var>(3) undergoes no less frequently than once every three years, a peer review <br/>
<a id="pl.24.33"></a><var>24.33</var>conducted in a manner specified by the board in rule, and the review includes verification <br/>
<a id="pl.24.34"></a><var>24.34</var>that the individual has met the competency requirements set out in professional standards <br/>
<a id="pl.24.35"></a><var>24.35</var>for such services.<br/>
<a id="pl.25.1"></a><var>25.1</var>(l) No person registered under section 
         <statute_ref>326A.06, paragraph (b)</statute_ref>, may issue a report <br/>
<a id="pl.25.2"></a><var>25.2</var>in standard form upon a compilation of financial information unless the board by rule <br/>
<a id="pl.25.3"></a><var>25.3</var>permits the report and the person: <br/>
<a id="pl.25.4"></a><var>25.4</var>(1) signs the compilation report identifying the individual as a registered accounting <br/>
<a id="pl.25.5"></a><var>25.5</var>practitioner;<br/>
<a id="pl.25.6"></a><var>25.6</var>(2) meets the competency requirements in board rule; and<br/>
<a id="pl.25.7"></a><var>25.7</var>(3) undergoes no less frequently than once every three years a peer review conducted <br/>
<a id="pl.25.8"></a><var>25.8</var>in a manner specified by the board in rule, and the review includes verification that the <br/>
<a id="pl.25.9"></a><var>25.9</var>individual has met the competency requirements in board rule.<br/>
<a id="pl.25.10"></a><var>25.10</var>(m) Nothing in this section prohibits a practicing attorney or firm of attorneys from <br/>
<a id="pl.25.11"></a><var>25.11</var>preparing or presenting records or documents customarily prepared by an attorney or firm <br/>
<a id="pl.25.12"></a><var>25.12</var>of attorneys in connection with the attorney's professional work in the practice of law.<br/>
<a id="pl.25.13"></a><var>25.13</var>(n) Notwithstanding other provisions of this section, persons preparing unaudited <br/>
<a id="pl.25.14"></a><var>25.14</var>financial statements under corresponding provisions of prior law shall be permitted to <br/>
<a id="pl.25.15"></a><var>25.15</var>perform compilation services until six months after the board adopts rules under section <br/>
<a id="pl.25.16"></a><var>25.16</var><statute_ref>326A.06</statute_ref>. The board shall adopt rules that place limitations on receipt by a licensee or a <br/>
<a id="pl.25.17"></a><var>25.17</var>person who holds a registration under section 326A.06, paragraph (b), of:<br/>
<a id="pl.25.18"></a><var>25.18</var>(1) contingent fees for professional services performed; and<br/>
<a id="pl.25.19"></a><var>25.19</var>(2) commissions or referral fees for recommending or referring to a client any <br/>
<a id="pl.25.20"></a><var>25.20</var>product or service.<br/>
<a id="pl.25.21"></a><var>25.21</var>(o) Anything in this section to the contrary notwithstanding, it shall not be a violation <br/>
<a id="pl.25.22"></a><var>25.22</var>of this section for a firm not holding a valid permit under section 326A.05 and not having <br/>
<a id="pl.25.23"></a><var>25.23</var>an office in this state to provide its professional services in this state so long as it complies <br/>
<a id="pl.25.24"></a><var>25.24</var>with the applicable requirements of section 326A.05, subdivision 1.<br/>
<br/>
<a id="bill.0.29.0"></a><a id="pl.25.25"></a><var>25.25</var>    Sec. 29. Minnesota Statutes 2006, section 326A.12, is amended to read:<br/>
<a id="pl.25.26"></a><var>25.26</var><b>326A.12 CONFIDENTIAL COMMUNICATIONS.</b><br/>
<a id="pl.25.27"></a><var>25.27</var>(a) Except by permission of the client for whom a licensee performs services <br/>
<a id="pl.25.28"></a><var>25.28</var>or the heirs, successors, or personal representatives of the client, a licensee shall not <br/>
<a id="pl.25.29"></a><var>25.29</var>voluntarily disclose information communicated to the licensee by the client relating to <br/>
<a id="pl.25.30"></a><var>25.30</var>and in connection with services rendered to the client by the licensee. Nothing in this <br/>
<a id="pl.25.31"></a><var>25.31</var>section may be construed to prohibit:<br/>
<a id="pl.25.32"></a><var>25.32</var>(1) the disclosure of information required to be disclosed by the standards of the <br/>
<a id="pl.25.33"></a><var>25.33</var>public accounting profession in reporting on the examination of financial statements; or<br/>
<a id="pl.25.34"></a><var>25.34</var>(2) disclosures in court proceedings, in investigations or proceedings under section <br/>
<statute_ref><a id="pl.25.35"></a><var>25.35</var>326A.08
         </statute_ref>, in ethical investigations conducted by private professional organizations, in the <br/>
<a id="pl.26.1"></a><var>26.1</var>course of peer reviews, to other persons active in the organization performing services for <br/>
<a id="pl.26.2"></a><var>26.2</var>that client on a need-to-know basis, or to persons in the entity who need this information <br/>
<a id="pl.26.3"></a><var>26.3</var>for the sole purpose of assuring quality control. <br/>
<a id="pl.26.4"></a><var>26.4</var>(b) This section also applies to persons registered under section 
         <statute_ref>326A.06, paragraph <br/>
<a id="pl.26.5"></a><var>26.5</var>(b)
         </statute_ref>, and to persons granted a practice privilege under section 326A.14. <br/>
<br/>
<a id="bill.0.30.0"></a><a id="pl.26.6"></a><var>26.6</var>    Sec. 30. Minnesota Statutes 2006, section 326A.13, is amended to read:<br/>
<a id="pl.26.7"></a><var>26.7</var><b>326A.13 WORKING PAPERS; CLIENTS' RECORDS.</b><br/>
<a id="pl.26.8"></a><var>26.8</var>(a) Subject to the provisions of section 
         <statute_ref>326A.12</statute_ref>, all statements, records, schedules, <br/>
<a id="pl.26.9"></a><var>26.9</var>working papers, and memoranda made by a licensee or a partner, shareholder, officer, <br/>
<a id="pl.26.10"></a><var>26.10</var>director, member, manager, or employee of a licensee, incident to, or in the course of, <br/>
<a id="pl.26.11"></a><var>26.11</var>rendering services to a client while a licensee, except the reports submitted by the licensee <br/>
<a id="pl.26.12"></a><var>26.12</var>to the client and except for records that are part of the client's records, remain the property <br/>
<a id="pl.26.13"></a><var>26.13</var>of the licensee in the absence of an express agreement between the licensee and the <br/>
<a id="pl.26.14"></a><var>26.14</var>client to the contrary. No statement, record, schedule, working paper, or memorandum <br/>
<a id="pl.26.15"></a><var>26.15</var>may be sold, transferred, or bequeathed, without the consent of the client or the client's <br/>
<a id="pl.26.16"></a><var>26.16</var>personal representative or assignee, to anyone other than one or more surviving partners, <br/>
<a id="pl.26.17"></a><var>26.17</var>stockholders, members or new partners, new stockholders, new members of the licensee, <br/>
<a id="pl.26.18"></a><var>26.18</var>or any combined or merged firm or successor in interest to the licensee. Nothing in this <br/>
<a id="pl.26.19"></a><var>26.19</var>section may be construed as prohibiting any temporary transfer of workpapers or other <br/>
<a id="pl.26.20"></a><var>26.20</var>material necessary in the course of carrying out peer reviews or as otherwise interfering <br/>
<a id="pl.26.21"></a><var>26.21</var>with the disclosure of information pursuant to section 
         <statute_ref>326A.12</statute_ref>. <br/>
<a id="pl.26.22"></a><var>26.22</var>(b) A licensee shall furnish to a client or former client, upon request and reasonable <br/>
<a id="pl.26.23"></a><var>26.23</var>notice:<br/>
<a id="pl.26.24"></a><var>26.24</var>(1) a copy of the licensee's working papers, to the extent that the working papers <br/>
<a id="pl.26.25"></a><var>26.25</var>include records that would ordinarily constitute part of the client's records and are not <br/>
<a id="pl.26.26"></a><var>26.26</var>otherwise available to the client; and<br/>
<a id="pl.26.27"></a><var>26.27</var>(2) any accounting or other records belonging to, or obtained from or on behalf of, <br/>
<a id="pl.26.28"></a><var>26.28</var>the client that the licensee removed from the client's premises or received for the client's <br/>
<a id="pl.26.29"></a><var>26.29</var>account. The licensee may make and retain copies of such documents of the client when <br/>
<a id="pl.26.30"></a><var>26.30</var>they form the basis for work done by the licensee.<br/>
<a id="pl.26.31"></a><var>26.31</var>(c) Nothing in this section requires a licensee to keep any work paper beyond the <br/>
<a id="pl.26.32"></a><var>26.32</var>period prescribed in any other applicable statute.<br/>
<a id="pl.26.33"></a><var>26.33</var>(d) This section also applies to persons registered under section 
         <statute_ref>326A.06, paragraph <br/>
<a id="pl.26.34"></a><var>26.34</var>(b), and to persons granted a practice privilege under section 326A.14
</statute_ref>. <br/>
<br/>
<a id="bill.0.31.0"></a><a id="pl.27.1"></a><var>27.1</var>    Sec. 31. Minnesota Statutes 2006, section 326A.14, is amended to read:<br/>
<a id="pl.27.2"></a><var>27.2</var><b>326A.14 SUBSTANTIAL EQUIVALENCY.</b><br/>
<a id="pl.27.3"></a><var>27.3</var>    Subdivision 1. <b>Requirements.</b> (a) An individual whose principal place of business <br/>
<a id="pl.27.4"></a><var>27.4</var>is not in this state and who has holds a valid certificate or license in good standing as <br/>
<a id="pl.27.5"></a><var>27.5</var>a certified public accountant from any state which, upon verification, is in substantial <br/>
<a id="pl.27.6"></a><var>27.6</var>equivalence with the certified public accountant licensure requirements of this chapter <br/>
<a id="pl.27.7"></a><var>27.7</var>section 326A.03, subdivisions 3, 4, and 6, shall be presumed to have qualifications <br/>
<a id="pl.27.8"></a><var>27.8</var>substantially equivalent to this state's requirements and shall have all the privileges of <br/>
<a id="pl.27.9"></a><var>27.9</var>certificate holders and licensees of this state without the need to obtain a certificate <br/>
<a id="pl.27.10"></a><var>27.10</var>or permit license. However, such individuals shall notify the board of their intent to <br/>
<a id="pl.27.11"></a><var>27.11</var>enter the state under this provision as provided for in board rule and pay the required <br/>
<a id="pl.27.12"></a><var>27.12</var>fee. Notwithstanding any contrary provision of this chapter, an individual who offers <br/>
<a id="pl.27.13"></a><var>27.13</var>or renders professional services, whether in person, by mail, telephone, or electronic <br/>
<a id="pl.27.14"></a><var>27.14</var>means, under this paragraph: (1) shall be granted practice privileges in this state; (2) is <br/>
<a id="pl.27.15"></a><var>27.15</var>subject to the requirements in paragraph (c); and (3) is not required to provide any notice <br/>
<a id="pl.27.16"></a><var>27.16</var>or other submission.<br/>
<a id="pl.27.17"></a><var>27.17</var>(b) An individual whose principal place of business is not in this state and who has <br/>
<a id="pl.27.18"></a><var>27.18</var>holds a valid certificate or license in good standing as a certified public accountant from <br/>
<a id="pl.27.19"></a><var>27.19</var>any state whose certified public accountant licensure qualifications, upon verification, <br/>
<a id="pl.27.20"></a><var>27.20</var>are not substantially equivalent with the licensure requirements of this chapter section <br/>
<a id="pl.27.21"></a><var>27.21</var>326A.03, subdivisions 3, 4, and 6, shall be presumed to have qualifications substantially <br/>
<a id="pl.27.22"></a><var>27.22</var>equivalent to this state's requirements and shall have all the privileges of certificate <br/>
<a id="pl.27.23"></a><var>27.23</var>holders and licensees of this state without the need to obtain a certificate or permit license <br/>
<a id="pl.27.24"></a><var>27.24</var>if the individual obtains verification, as specified in board rule, that the individual's <br/>
<a id="pl.27.25"></a><var>27.25</var>qualifications are substantially equivalent to the licensure requirements of this chapter <br/>
<a id="pl.27.26"></a><var>27.26</var>section 326A.03, subdivisions 3, 4, and 6. Such individuals shall notify the board of their <br/>
<a id="pl.27.27"></a><var>27.27</var>intent to enter the state under this provision as provided for in board rule and pay the <br/>
<a id="pl.27.28"></a><var>27.28</var>required fee. For purposes of this paragraph, any individual who passed the Uniform CPA <br/>
<a id="pl.27.29"></a><var>27.29</var>Examination and holds a valid license issued by any other state prior to January 1, 2009, is <br/>
<a id="pl.27.30"></a><var>27.30</var>exempt from the education requirement in section 326A.03, subdivision 6, paragraph (a), <br/>
<a id="pl.27.31"></a><var>27.31</var>provided the individual meets the education requirement in section 326A.03, subdivision <br/>
<a id="pl.27.32"></a><var>27.32</var>3. Notwithstanding any contrary provision of this chapter, an individual who offers or <br/>
<a id="pl.27.33"></a><var>27.33</var>renders professional services, whether in person, by mail, telephone, or electronic means, <br/>
<a id="pl.27.34"></a><var>27.34</var>under this paragraph: (1) shall, after the verification specified by adopted rules, be granted <br/>
<a id="pl.27.35"></a><var>27.35</var>practice privileges in this state; (2) is subject to the requirements in paragraph (c); and (3) <br/>
<a id="pl.27.36"></a><var>27.36</var>is not required to provide any notice or other submission.<br/>
<a id="pl.28.1"></a><var>28.1</var>(c) Any An individual licensee of another state exercising the privilege afforded <br/>
<a id="pl.28.2"></a><var>28.2</var>under this section consents and the firm which employs that licensee are deemed to have <br/>
<a id="pl.28.3"></a><var>28.3</var>consented, as a condition of the grant of this privilege:<br/>
<a id="pl.28.4"></a><var>28.4</var>(1) to the personal and subject matter jurisdiction and disciplinary authority of <br/>
<a id="pl.28.5"></a><var>28.5</var>the board;<br/>
<a id="pl.28.6"></a><var>28.6</var>(2) to comply with this chapter and the board's rules; and<br/>
<a id="pl.28.7"></a><var>28.7</var>(3) to the appointment of the state board that issued the license as the licensee's <br/>
<a id="pl.28.8"></a><var>28.8</var>agent upon whom process may be served in any action or proceeding by this board <br/>
<a id="pl.28.9"></a><var>28.9</var>against the licensee.; and<br/>
<a id="pl.28.10"></a><var>28.10</var>(4) to cease offering or rendering professional services in this state individually and <br/>
<a id="pl.28.11"></a><var>28.11</var>on behalf of a firm in the event the license issued by the state of the individual's principal <br/>
<a id="pl.28.12"></a><var>28.12</var>place of business is no longer valid or in good standing.<br/>
<a id="pl.28.13"></a><var>28.13</var>(d) An individual who has been granted practice privileges under this section who <br/>
<a id="pl.28.14"></a><var>28.14</var>performs attest services as defined in section 326A.01, subdivision 2, clause (1), (3), or <br/>
<a id="pl.28.15"></a><var>28.15</var>(4), for any entity with its headquarters in this state, may only do so through a firm which <br/>
<a id="pl.28.16"></a><var>28.16</var>has obtained a permit under section 326A.05.<br/>
<a id="pl.28.17"></a><var>28.17</var>    Subd. 2. <b>Use of title in another state.</b> A licensee of this state offering or rendering <br/>
<a id="pl.28.18"></a><var>28.18</var>services or using the CPA title in another state is subject to the same disciplinary action in <br/>
<a id="pl.28.19"></a><var>28.19</var>this state for which the licensee would be subject to discipline for an act committed in the <br/>
<a id="pl.28.20"></a><var>28.20</var>other state. The board shall investigate any complaint made by the board of accountancy <br/>
<a id="pl.28.21"></a><var>28.21</var>of another state.<br/>
<br/>
<a id="bill.0.32.0"></a><a id="pl.28.22"></a><var>28.22</var>    Sec. 32. <b> REPEALER.</b><br/>
<a id="pl.28.23"></a><var>28.23</var>Minnesota Statutes 2006, section 326A.05, subdivision 9, is repealed.<br/>
<br/>
<a id="bill.0.33.0"></a><a id="pl.28.24"></a><var>28.24</var>    Sec. 33. <b>EFFECTIVE DATE.</b><br/>
<a id="pl.28.25"></a><var>28.25</var>Sections 1 to 32 are effective the day following final enactment.<br/>