SF 5205
Introduction - 94th Legislature (2025 - 2026)
Posted on 04/24/2026 09:15 a.m.
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A bill for an act
relating to state government; modifying eligibility requirements for certain certified
public accountants and firms; amending Minnesota Statutes 2024, section 326A.05,
subdivisions 1, 7; Minnesota Statutes 2025 Supplement, section 326A.14,
subdivision 1, by adding a subdivision.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2024, section 326A.05, subdivision 1, is amended to read:
Subdivision 1.
General.
The board shall grant or renew permits to practice as a CPA
firm to entities that make application and demonstrate their qualifications in accordance
with this section.
(a) The following must hold a permit issued under this section:
(1) any firm with an office in this state performing attest services as defined in section
326A.01, subdivision 2;
(2) to the extent required by section 326A.10, paragraph (k), any firm with an office in
this state performing compilation services as defined in section 326A.01, subdivision 6;
(3) any firm with an office in this state that uses the title "CPA" or "CPA firm"; or
(4) any firm that does not have an office in this statenew text begin and does not qualify for interstate
mobility under section 326A.14new text end but performs attest services as described in section 326A.01,
subdivision 2, clause (1), (4), or (5), for a client having its headquarters in this state.
(b) A firm possessing a valid permit from another state deleted text begin whichdeleted text end new text begin thatnew text end does not have an
office in this state may perform services described in section 326A.01, subdivision 2, clause
(2) or (5), or subdivision 6, for a client having its headquarters in this state and may use the
title "CPA" or "CPA firm" without a permit issued under this section only ifdeleted text begin :deleted text end new text begin the firm meets
the qualifications for interstate firm mobility under section 326A.14, subdivision 3.
new text end
deleted text begin
(1) it has the qualifications described in subdivision 3, paragraph (b);
deleted text end
deleted text begin
(2) as a condition to the renewal of the firm's permit issued by the other state, that state
requires a peer review which contains the requirements equivalent to subdivision 8,
paragraphs (a) and (e); and
deleted text end
deleted text begin
(3) it performs the services through an individual who has been granted practice privileges
under section 326A.14.
deleted text end
(c) A firm possessing a valid permit from another state that does not have an office in
this state and which is not subject to the requirements of paragraph (a), clause (4), or (b),
may perform other professional services while using the title "CPA" or "CPA firm" in this
state without a permit issued under this section only if the firm:
(1) has the qualifications described in subdivision 3, paragraph (b);
(2) performs the services through an individual who has been granted practice privileges
under section 326A.14; and
(3) can lawfully perform the services in the state where the individuals with practice
privileges have their principal place of business.
Sec. 2.
Minnesota Statutes 2024, section 326A.05, subdivision 7, is amended to read:
Subd. 7.
Corrective actions, revocation.
Firms that fall out of compliance with the
provisions of this section due to changes in firm ownership or personnel, after receiving or
renewing a permit, shall take corrective action to bring the firm back into compliance as
quickly as possible. Failure to bring the firm back into compliance within a reasonable
period as defined by the board rule shall result in the suspension or revocation of the firm
permitnew text begin or practice privilegenew text end .
Sec. 3.
Minnesota Statutes 2025 Supplement, section 326A.14, subdivision 1, is amended
to read:
Subdivision 1.
Requirements.
(a) An individual whose principal place of business is
not in this state deleted text begin shalldeleted text end new text begin mustnew text end be presumed to have qualifications substantially equivalent to
this state's requirements and deleted text begin shall havedeleted text end new text begin hasnew text end all the privileges of licensees of this state without
the need to obtain a license, if the person:
(1) holds a valid certificate, license, or permit to practice as a certified public accountant
that was issued in another state and is in good standing to practice as a certified public
accountant in that state;
(2) has a bachelor's degree or higher from an accredited postsecondary school with an
accounting concentration or equivalent as determined by the board by rule; and
(3) has passed the Uniform CPA Examination.
(b) Notwithstanding any contrary provision of this chapter, an individual who offers or
renders professional services, whether in person, by mail, telephone, or electronic means,
under paragraph (a)new text begin or (e)new text end : (1) deleted text begin shalldeleted text end new text begin mustnew text end be granted practice privileges in this state; (2) is
subject to the requirements in paragraph (c); and (3) is not required to provide any notice
or other submission.
(c) An individual licensee of another state exercising the privilege afforded under this
section and the firm deleted text begin whichdeleted text end new text begin thatnew text end employs that licensee are deemed to have consented, as a
condition of the grant of this privilege:
(1) to the personal and subject matter jurisdiction and disciplinary authority of the board;
(2) to comply with this chapter and the board's rules;
(3) to the appointment of the state board that issued the license as the licensee's agent
upon whom process may be served in any action or proceeding by this board against the
licensee; and
(4) to cease offering or rendering professional services in this state individually and on
behalf of a firm in the event the license issued by the state of the individual's principal place
of business is no longer valid or in good standing.
(d) An individual who has been granted practice privileges under this section who
performs attest services as defined in section 326A.01, subdivision 2, clause (1), (4), or (5),
for any deleted text begin entitydeleted text end new text begin clientnew text end with its headquarters in this state, may only do so through a firm deleted text begin whichdeleted text end new text begin
thatnew text end has obtained a permit under section 326A.05new text begin or has practice privileges under subdivision
3new text end .
new text begin
(e) An individual has all of the privileges of a licensee of this state without the need to
obtain a license if:
new text end
new text begin
(1) the individual's principal place of business is not in this state;
new text end
new text begin
(2) the individual currently holds a valid certificate, license, or permit to practice as a
certified public accountant in another state that the board recognized as substantially
equivalent as of December 31, 2024; and
new text end
new text begin
(3) the individual held the valid certificate, license, or permit as of December 31, 2024.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively from May 24, 2025.
new text end
Sec. 4.
Minnesota Statutes 2025 Supplement, section 326A.14, is amended by adding a
subdivision to read:
new text begin Subd. 3. new text end
new text begin Firm mobility. new text end
new text begin
A firm that possesses a valid permit from another state that
does not have an office in this state may perform the services described in section 326A.01,
subdivision 2, for a client that has its headquarters in this state without a permit issued under
this chapter only if:
new text end
new text begin
(1) the firm has the qualifications described in section 326A.05, subdivision 3, paragraph
(b);
new text end
new text begin
(2) as a condition to the renewal of the firm's permit issued by the other state, the other
state requires a peer review that contains requirements equivalent to section 326A.05,
subdivision 8, paragraphs (a) and (e); and
new text end
new text begin
(3) the firm performs the services through an individual who is licensed under this chapter
or has been granted practice privileges under subdivision 1.
new text end