1.1 A bill for an act
1.2 relating to accountants; modifying licensing
1.3 provisions; providing for firm licensure; authorizing
1.4 rulemaking; amending Minnesota Statutes 1996, sections
1.5 326.165; 326.17; 326.18; 326.19; 326.20; 326.211;
1.6 326.212, subdivisions 1, 4, 5, and by adding a
1.7 subdivision; 326.22, subdivision 2; 326.223; 326.228;
1.8 and 326.229, subdivisions 3, 4, 6, and by adding a
1.9 subdivision; proposing coding for new law in Minnesota
1.10 Statutes, chapter 326; repealing Minnesota Statutes
1.11 1996, sections 326.191; 326.21; and 326.225.
1.12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.13 Section 1. Minnesota Statutes 1996, section 326.165, is
1.14 amended to read:
1.15 326.165 [BOARD OF ACCOUNTANCY POLICY; DEFINITIONS.]
1.16 Subdivision 1. [PURPOSE.] It is the policy of this state
1.17 to promote the dependability of information which is used for
1.18 guidance in financial transactions or for accounting for or
1.19 assessing the status or performance of commercial and
1.20 noncommercial enterprises, whether public, private, or
1.21 governmental. The public interest requires that persons engaged
1.22 in the practice of public accounting be qualified; that a public
1.23 authority competent to prescribe and assess the qualifications
1.24 of public accountants be established; that the expression of any
1.25 form of assurance or of opinions on financial statements be
1.26 reserved to persons who demonstrate their ability and fitness to
1.27 observe and apply the standards of the accounting profession;
1.28 and that the use of accounting titles likely to confuse the
2.1 public be prohibited.
2.2 Subd. 1a. [SCOPE.] For the purposes of sections 326.165 to
2.3 326.229, the definitions in this section have the meanings given.
2.4 Subd. 2. [PRACTICE OF PUBLIC ACCOUNTING.] The "practice of
2.5 public accounting" is: (a) (1) holding one's self out to the
2.6 public as skilled in the knowledge and practice of
2.7 accounting; or (b) (2) expressing any form of assurance on
2.8 financial statements; or (c) (3) expressing opinions on
2.9 financial statements for credit purposes, for use in courts and
2.10 for other purposes involving third parties.
2.11 Subd. 3. [ASSURANCE OR OPINIONS ON FINANCIAL STATEMENTS.] "
2.12 Assurance or opinions on financial statements" are any opinions
2.13 or assurance expressed in accordance with generally accepted
2.14 auditing standards or other authoritative professional standards
2.15 as to the fairness of presentation of information which is used
2.16 for guidance in financial transactions or for accounting for or
2.17 assessing the status or performance of commercial and
2.18 noncommercial enterprises, whether public, private, or
2.19 governmental.
2.20 Subd. 4. [CPA.] "CPA" means certified public accountant.
2.21 Subd. 5. [FINANCIAL STATEMENTS.] "Financial statements"
2.22 means a presentation of financial data, including accompanying
2.23 notes, if any, intended to communicate an entity's economic
2.24 resources and/or obligations at a point in time, or the changes
2.25 therein for a period of time, in accordance with generally
2.26 accepted accounting principles or a comprehensive basis of
2.27 accounting other than generally accepted accounting principles.
2.28 Incidental financial data to support recommendations to a
2.29 client, management advisory service reports, or tax returns and
2.30 supporting schedules do not constitute financial statements.
2.31 The statement, affidavit, or signature of preparers required on
2.32 tax returns neither constitutes an opinion on financial
2.33 statements nor requires a disclaimer of the opinion.
2.34 Subd. 6. [FIRM.] "Firm" means an entity of CPAs or LPAs
2.35 organized as a CPA or LPA partnership, professional corporation,
2.36 professional limited liability company, or professional limited
3.1 liability partnership, any cooperative auditing organization as
3.2 specified in section 326.192, subdivision 4, or any CPA or LPA
3.3 practice in any other form of business organization authorized
3.4 by law for use by CPAs and LPAs, including individual partners
3.5 or shareholders.
3.6 Subd. 7. [LPA.] "LPA" means licensed public accountant.
3.7 Licensed public accountants are those accountants who were
3.8 eligible for licensure on July 1, 1979, under the law in effect
3.9 on that date and who were issued a license as a licensed public
3.10 accountant by the board at that time.
3.11 Sec. 2. Minnesota Statutes 1996, section 326.17, is
3.12 amended to read:
3.13 326.17 [BOARD OF ACCOUNTANCY.]
3.14 (a) A board of accountancy is created to carry out the
3.15 purposes and enforce the provisions of sections 326.165 to
3.16 326.229. It consists of between seven and nine citizens of this
3.17 state appointed by the governor as provided in this section.
3.18 Two shall be public members as defined by section 214.02, five
3.19 shall be currently actively licensed certified public
3.20 accountants, and two shall be actively licensed public
3.21 accountants under the provisions of sections 326.165 to
3.22 326.229. When the number of licensed public accountants in this
3.23 state drops below 100, their representation on the board of
3.24 accountancy shall drop to one and the board shall consist of two
3.25 public members, five currently actively licensed certified
3.26 public accountants, and one actively licensed public
3.27 accountant. At the time when the number of licensed public
3.28 accountants in this state drops below 25, the licensed public
3.29 accountants shall lose their representation on the board, except
3.30 that the licensed public accountant then serving on the board
3.31 shall be allowed to complete the term of office and. The board
3.32 shall then consist of two public members and five currently
3.33 actively licensed certified public accountants.
3.34 (b) Membership terms, compensation of members, removal of
3.35 members, the filling of membership vacancies, and fiscal year
3.36 and reporting requirements shall be as provided in sections
4.1 214.07 to 214.09. The provision of staff, administrative
4.2 services, and office space; the review and processing of
4.3 complaints; the setting of board fees; and other provisions
4.4 relating to board operations shall be as provided in chapter 214
4.5 and sections 326.165 to 326.229.
4.6 Sec. 3. Minnesota Statutes 1996, section 326.18, is
4.7 amended to read:
4.8 326.18 [BOARD, DUTIES, OFFICERS, RULES, EXAMINATIONS.]
4.9 Subdivision 1. [MEMBERS AND OFFICERS.] A majority of
4.10 the qualified members of the board constitutes a quorum. The
4.11 board shall elect one of its number as chair, another as
4.12 vice-chair, and another as secretary and treasurer, who shall
4.13 hold their respective offices for a term of one year and until
4.14 their successors are elected. The affirmative vote of a
4.15 majority of the qualified members of the board is considered the
4.16 action of the board.
4.17 Subd. 2. [DUTIES.] The board shall enforce the standard of
4.18 general education;, the standard of special education in the
4.19 science and art of accounting;, and the standard of good
4.20 character and general public experience, as prescribed in
4.21 sections 326.165 to 326.229, in all examinations conducted
4.22 thereunder.
4.23 Subd. 3. [RULES.] The board shall make rules for the
4.24 conduct of applicants' examinations and the character and scope
4.25 of the examinations, the method and time of filing applications
4.26 for examinations and their form and contents, and all other
4.27 rules proper to carry into effect the purposes of sections
4.28 326.165 to 326.229. The board shall make rules to govern
4.29 administration of the board, examinations, issuance of
4.30 certificates, licensing, professional conduct and discipline,
4.31 continuing education, fees, and practice monitoring.
4.32 Subd. 4. [EXAMINATION.] The board may make use of all or
4.33 any part of the uniform certified public accountant examination
4.34 and advisory grading service provided by the American Institute
4.35 of Certified Public Accountants if it deems it appropriate to
4.36 assist it in performing its duties. These examinations shall be
5.1 conducted by the board of accountancy. The examinations shall
5.2 take place as often as may be convenient in the opinion of the
5.3 board. The board may make rules necessary to implement and
5.4 enforce sections 326.165 to 326.229, and 214.12, including but
5.5 not limited to rules of professional conduct, pertaining to
5.6 individuals, partnerships and corporations practicing public
5.7 accounting which it deems consistent with or required by the
5.8 public welfare and rules of continuing education to be met by
5.9 persons licensed under sections 326.165 to 326.229.
5.10 Subd. 5. [RECORDS, CERTIFICATES, AND LICENSES.] (a) The
5.11 board shall keep records of its proceedings, an accurate list of
5.12 all applications made, licenses and certificates issued, and
5.13 licenses and certificates revoked disciplined pursuant to
5.14 section 326.229, and shall keep proper financial records in
5.15 which there shall be entered a complete statement of the cash
5.16 receipts and disbursements. All records of the board shall be
5.17 subject to chapter 13.
5.18 (b) The board shall issue to each person who satisfies the
5.19 examination requirements of section 326.19, subdivision 1, a
5.20 certified public accountant certificate and shall maintain a
5.21 record of that issuance. The board shall issue a license as a
5.22 certified public accountant to each holder of a certified public
5.23 accountant certificate who satisfies the experience requirements
5.24 for a license as a certified public accountant or to a person
5.25 who has been issued a certified public accountant certificate
5.26 under section 326.19, subdivision 3. The board shall maintain a
5.27 record of the issuance. It shall adopt and provide itself with
5.28 a seal with a band inscribed "Certified Public Accountant, State
5.29 of Minnesota," with the coat of arms of Minnesota in the center,
5.30 which seal shall be affixed to each certificate of the certified
5.31 public accountant issued under sections 326.17 326.165 to
5.32 326.229.
5.33 (c) The board shall issue to each person who qualifies for
5.34 a license under sections 326.17 326.165 to 326.229 as a licensed
5.35 public accountant a certificate as a licensed public accountant
5.36 and shall maintain a record of that issuance. It shall adopt
6.1 and provide itself with a seal with a band inscribed "Licensed
6.2 Public Accountant, State of Minnesota," with the coat of arms of
6.3 Minnesota in the center, which seal shall be affixed to each
6.4 certificate of the licensed public accountant, issued under
6.5 sections 326.17 326.165 to 326.229. All records of the board
6.6 shall be open to the inspection of the public at the office of
6.7 its secretary.
6.8 Sec. 4. Minnesota Statutes 1996, section 326.19, is
6.9 amended to read:
6.10 326.19 [LICENSURE; QUALIFICATIONS OF CERTIFIED PUBLIC
6.11 ACCOUNTANTS; CERTIFICATES AND LICENSING.]
6.12 Subdivision 1. [CERTIFICATES AND LICENSES AS CERTIFIED
6.13 PUBLIC ACCOUNTANTS.] (a) A certified public accountant
6.14 certificate shall be granted to any person:
6.15 (a) (1) who has attained the age of 18 years; and
6.16 (b) (2) who is of good character; and
6.17 (c) (3) who has successfully completed an examination in
6.18 the subjects and at the times the board may prescribe in its
6.19 rules; and
6.20 (4) who meets all other requirements for issuance of a
6.21 certificate, including payment of required fees.
6.22 (b) The examination shall be administered by the board only
6.23 to a candidate who holds:
6.24 (i) (1) holds a master's degree with a major in accounting
6.25 from a college or university that is fully accredited by the
6.26 North Central Association of Colleges and Secondary Schools, or
6.27 an equivalent accrediting association, or who has in the opinion
6.28 of the board at least an equivalent education a recognized
6.29 accrediting agency listed with the United States Department of
6.30 Education; or
6.31 (ii) (2) holds a baccalaureate degree, with a major in
6.32 accounting, from a college or university that is fully
6.33 accredited by the North Central Association of Colleges and
6.34 Secondary Schools, or an equivalent accrediting association, or
6.35 whose credits are acceptable to the University of Minnesota for
6.36 admission to graduate study, a recognized accrediting agency
7.1 listed with the United States Department of Education or who has
7.2 in the opinion of the board at least an equivalent education; or
7.3 (iii) (3) holds a baccalaureate degree from a college or
7.4 university that is fully accredited by the North Central
7.5 Association of Colleges and Secondary Schools, or an equivalent
7.6 accrediting association, or whose credits are acceptable to the
7.7 University of Minnesota for admission to graduate study, or a
7.8 recognized accrediting agency listed with the United States
7.9 Department of Education and who has in the opinion of the board
7.10 at least an equivalent education, or providing at least one year
7.11 of experience of the type specified in subdivision 4, has been
7.12 completed; or
7.13 (iv) (4) provides evidence of having completed two or more
7.14 years of study with passing grade average or above from a
7.15 college or, university that is fully accredited by the North
7.16 Central Association of Colleges and Secondary Schools, or an
7.17 equivalent accrediting association, or whose credits are
7.18 acceptable to the University of Minnesota for admission to
7.19 graduate study, or a, technical college, or a Minnesota licensed
7.20 private vocational school which fulfills the requirements of
7.21 sections 141.21 to 141.36, that is fully accredited by a
7.22 recognized accrediting agency listed with the United States
7.23 Department of Education or who has in the opinion of the board
7.24 at least an equivalent education, providing that at least three
7.25 years experience of the type specified in subdivision 4, has
7.26 been completed; or
7.27 (v) (5) holds a diploma as a graduate of an accredited high
7.28 school or who has in the opinion of the board at least an
7.29 equivalent education, providing that at least five years
7.30 experience of the type specified in subdivision 4 has been
7.31 completed.
7.32 Subd. 2. [EXPERIENCE.] A certified public accountant
7.33 license shall be granted to any person who has been issued a
7.34 certified public accountant certificate under subdivision 3.
7.35 Those persons holding certified public accountant certificates
7.36 issued under subdivision 1 who meet all other requirements for
8.1 licensure, including payment of required fees, shall be granted
8.2 licenses as certified public accountants, providing that they
8.3 have completed the following required experience of the type
8.4 specified in subdivision 4 in addition to any experience
8.5 required in subdivision 1, clause (c)(i) to (v) paragraph (b):
8.6 (i) (1) for those whose educational qualifications meet the
8.7 requirements of subdivision 1, paragraph (b), clause (c)(i) (1),
8.8 the experience requirement is one year;
8.9 (ii) (2) for those whose educational qualifications meet
8.10 the requirements of subdivision 1, paragraph (b), clause
8.11 (c)(ii) (2), the experience requirement is two years;
8.12 (iii) (3) for those whose educational and experience
8.13 qualifications meet the requirements of subdivision 1, paragraph
8.14 (b), clause (c)(iii) (3), the additional required experience is
8.15 two years;
8.16 (iv) (4) for those whose educational and experience
8.17 qualifications meet the requirements of subdivision 1, paragraph
8.18 (b), clause (c)(iv) (4), the additional required experience is
8.19 two years; and
8.20 (v) (5) for those whose educational and experience
8.21 qualifications meet the requirements of subdivision 1, paragraph
8.22 (b), clause (c)(v) (5), the additional required experience is
8.23 one year.
8.24 Subd. 3. [CERTIFICATE AND LICENSE WITHOUT EXAMINATION.]
8.25 The state board of accountancy may, in its discretion, waive the
8.26 examination of, and may issue a certificate and license as, a
8.27 certified public accountant to any person possessing the
8.28 qualifications mentioned in this section, who:
8.29 (a) (1) is the holder of a C.P.A. CPA license or
8.30 certificate, issued under the laws of another state, provided
8.31 the requirements for the license or certificate in the state
8.32 which has granted it to the applicant are, in the opinion of the
8.33 state board of accountancy, equivalent to those herein
8.34 provided in subdivisions 1 and 2; or
8.35 (b) shall be (2) is the holder of a degree or certificate
8.36 of certified public accountant or chartered accountant, or the
9.1 equivalent thereof, issued in any foreign country, provided that
9.2 the requirements for the degree or certificate are equivalent to
9.3 those herein provided in subdivisions 1 and 2 for the license of
9.4 certified public accountant in this state.; or
9.5 (c) Shall (3) has in another jurisdiction have completed
9.6 successfully an examination which, in the opinion of the board,
9.7 is comparable to that prescribed by the board in its rules and
9.8 provided that such the person has satisfied the other
9.9 requirements of subdivisions 1 and 2.
9.10 Subd. 4. [QUALIFYING EXPERIENCE FOR EXAMINATION AND
9.11 GRANTING OF LICENSE.] Qualifying experience for subdivisions 1,
9.12 2, and 3 include public accounting experience:
9.13 (1) as a staff employee of a certified public
9.14 accountant or, licensed public accountant, or a firm of
9.15 certified public accountants or public accountants, or a
9.16 corporation formed licensed for the practice of public
9.17 accounting; or
9.18 (2) as an auditor in the office of the legislative auditor
9.19 or state auditor, or as an auditor or examiner with any other
9.20 agency of government, which experience, in the opinion of the
9.21 board is equally comprehensive and diversified; or
9.22 (3) as a self-employed public accountant or as a partner in
9.23 a firm of public accountants; or
9.24 (4) in any combination of the foregoing capacities.
9.25 Sec. 5. [326.192] [LICENSURE; QUALIFICATIONS OF FIRMS.]
9.26 Subdivision 1. [APPLICATION.] Upon application made upon
9.27 the affidavit of a general partner of the partnership, secretary
9.28 of the corporation, or member of the limited liability company
9.29 or partnership who is a CPA or a LPA of this state in good
9.30 standing, the board shall issue a firm license. The license
9.31 shall be valid for a period prescribed by the board, unless the
9.32 license is revoked sooner. The application shall confer upon
9.33 the board the consent of the partnership, corporation, or
9.34 limited liability company or partnership, and of the general
9.35 partner, secretary, or member making the application, to the
9.36 board's jurisdiction over the acts of the partnership and its
10.1 partners or agents, of the corporation and its shareholders or
10.2 agents within the state, or of the limited liability company or
10.3 partnership and its members or agents.
10.4 Subd. 2. [CPA FIRMS.] No partnership, corporation, or
10.5 limited liability company or partnership shall style itself as a
10.6 firm of CPAs unless:
10.7 (1) all partners, shareholders, or members resident in this
10.8 state are CPAs of this state;
10.9 (2) all managers in charge of offices maintained in this
10.10 state are CPAs of this state;
10.11 (3) all partners, shareholders, or members, wherever
10.12 situated, are CPAs of one of the states or territories or of the
10.13 District of Columbia; and
10.14 (4) the partnership, corporation, or limited liability
10.15 company or partnership is duly licensed under this section.
10.16 Subd. 3. [LPA FIRMS.] No partnership, corporation, or
10.17 limited liability company or partnership shall style itself as a
10.18 firm of LPAs unless:
10.19 (1) all partners, shareholders, or members resident in this
10.20 state are LPAs or CPAs of this state;
10.21 (2) all managers in charge of offices maintained in this
10.22 state are LPAs or CPAs of this state;
10.23 (3) all partners, shareholders, or members, wherever
10.24 situated, are LPAs of this state or CPAs of one of the states or
10.25 territories or the District of Columbia; and
10.26 (4) the partnership, corporation, or limited liability
10.27 company or partnership is duly licensed under this section.
10.28 Subd. 4. [COOPERATIVE AUDITING ORGANIZATION.] Any
10.29 cooperative auditing organization organized under chapter 308A
10.30 is qualified for a cooperative auditing service license and may
10.31 style itself as a licensed cooperative auditing service if:
10.32 (1) for a minimum of one year prior to July 1, 1979, it
10.33 rendered auditing or accounting of business analysis services to
10.34 its members only; and
10.35 (2) its managers in charge of offices maintained in this
10.36 state are certified public accountants or licensed public
11.1 accountants of this state.
11.2 Cooperative auditing services shall comply with all requirements
11.3 imposed by sections 326.165 to 326.229 and the board's rules
11.4 governing firms.
11.5 Sec. 6. Minnesota Statutes 1996, section 326.20, is
11.6 amended to read:
11.7 326.20 [RENEWAL; UNLICENSED PRACTICE.]
11.8 Subdivision 1. [LICENSE RENEWAL OF CERTIFIED PUBLIC
11.9 ACCOUNTANTS AND LICENSED PUBLIC ACCOUNTANTS.] (a) Every holder
11.10 of a certified public accountant CPA license or a licensed
11.11 public accountant an LPA license issued by the board, if
11.12 engaged, or intending to be engaged, in public the practice of
11.13 public accounting within this state at any time during a
11.14 calendar year, shall renew the license as active as prescribed
11.15 by the board by rule.
11.16 (b) Every holder of a CPA license or an LPA license issued
11.17 by the board, who does not intend to actively engage in the
11.18 practice of public accounting within this state at any time
11.19 during a calendar year, shall renew the license as inactive or
11.20 active, as prescribed by the board by rule under authority
11.21 granted in section 326.18, subdivision 3. Previously licensed
11.22 individuals who do not actively engage in the practice of public
11.23 accounting in any manner or who do not hold out as CPAs or LPAs
11.24 in any manner are not required to obtain a license nor may the
11.25 board require those individuals to surrender their
11.26 certificates. The board must provide for the relicensing of
11.27 those individuals if they wish to return to the practice of
11.28 public accounting.
11.29 (c) The board may establish temporary, active, and inactive
11.30 licenses and adopt rules, under authority granted in section
11.31 326.18, subdivision 3, governing them.
11.32 (d) The board shall, upon application made by any holder of
11.33 an unrevoked Minnesota or unsuspended license as a certified
11.34 public accountant CPA or unrevoked or unsuspended Minnesota
11.35 license as a licensed public accountant LPA, renew the license
11.36 which shall be good for a period prescribed by the board, unless
12.1 the said certificate or license shall sooner be is revoked or
12.2 suspended during that period. Interim licenses shall be issued
12.3 to individuals who have satisfied the provisions of
12.4 sections 326.17 326.165 to 326.229 within the year. If a
12.5 license has been conditioned, limited, or otherwise restricted
12.6 or disciplined pursuant to section 326.229, any other condition,
12.7 limitation, or discipline shall remain for the term of the
12.8 board's order imposing the condition, limitation, or other
12.9 discipline, notwithstanding renewal of the license.
12.10 (e) The CPA certificates of persons who fail to renew their
12.11 licenses as required by this subdivision for more than two years
12.12 after expiration shall be automatically revoked by order of the
12.13 board. This includes all persons who, on the effective date of
12.14 this section, did not hold an active or an inactive license in
12.15 1996, 1997, and 1998. The orders may be issued by the board
12.16 without following the procedures of chapter 14, provided the
12.17 board notifies each such person by mail at the person's last
12.18 known address on file with the board at least three days prior
12.19 to the issuance of any such order. No such notice is required
12.20 if the last communication sent by the board to a licensee was
12.21 returned to the board by the United States Postal Service as
12.22 undeliverable and with no forwarding address. Certificates so
12.23 revoked by the board may be reinstated, if at all, pursuant to
12.24 section 326.229, subdivision 7. This paragraph shall not apply
12.25 to previously licensed individuals who have notified the board
12.26 that they will not hold out as CPAs or LPAs in any manner or
12.27 practice public accounting in any manner.
12.28 Subd. 2. [LICENSURE OF PARTNERSHIPS AND CORPORATIONS.]
12.29 Every partnership or corporation in which one or more certified
12.30 public accountants or licensed public accountants of this state
12.31 is a partner or shareholder, if it is engaged, or intends to be
12.32 engaged, in public practice within this state at any time shall
12.33 be licensed by the state board of accountancy for that period.
12.34 Upon application made upon the affidavit of a general partner of
12.35 the partnership or secretary of the corporation who is a
12.36 certified public accountant or a licensed public accountant of
13.1 this state in good standing, the board shall issue a license
13.2 which shall be good for a period prescribed by the board, unless
13.3 the license shall sooner be revoked. Interim licenses shall be
13.4 issued to partnerships or corporations which have satisfied the
13.5 provisions of this subdivision. The application shall confer
13.6 upon the board the consent of the partnership or corporation,
13.7 and of the general partner or secretary making the application,
13.8 to the board's jurisdiction over the acts of the partnership and
13.9 its partners or agents or of the corporation and its
13.10 shareholders or agents within the state.
13.11 No partnership or corporation shall style itself as a firm
13.12 of certified public accountants unless (a) all partners or
13.13 shareholders resident in this state are certified public
13.14 accountants of this state, (b) all managers in charge of offices
13.15 maintained in this state are certified public accountants of
13.16 this state, (c) all partners or shareholders, wherever situated,
13.17 are certified public accountants of one of the states or
13.18 territories or of the District of Columbia and (d) the
13.19 partnership or corporation is duly licensed under this section.
13.20 No partnership or corporation shall style itself as a firm
13.21 of licensed public accountants unless (a) all partners or
13.22 shareholders resident in this state are licensed public
13.23 accountants or certified public accountants of this state, (b)
13.24 all managers in charge of offices maintained in this state are
13.25 licensed public accountants or certified public accountants of
13.26 this state, (c) all partners or shareholders, wherever situated,
13.27 are licensed public accountants of this state or certified
13.28 public accountants of one of the states or territories or the
13.29 District of Columbia and (d) the partnership or corporation is
13.30 duly licensed under this section.
13.31 Any cooperative auditing organization organized under
13.32 chapter 308A (a) which for a minimum of one year prior to July
13.33 1, 1979, has been rendering auditing, accounting of business
13.34 analysis services to its members only, and (b) whose managers in
13.35 charge of offices maintained in this state are certified public
13.36 accountants or licensed public accountants of this state, shall
14.1 be deemed to be qualified for a cooperative auditing service
14.2 license and may style itself as a licensed cooperative auditing
14.3 service.
14.4 Subd. 3. [UNLICENSED PRACTICE.] It shall be is unlawful
14.5 for any certified public accountant CPA or any LPA, or a firm
14.6 defined under section 326.165, subdivision 6, partnership
14.7 containing one or more certified public accountants to engage in
14.8 public the practice of public accounting within this state
14.9 unless such certified public accountant or the CPA, LPA,
14.10 partnership or firm defined under section 326.165, subdivision
14.11 6, is duly licensed as provided by this section. A partnership
14.12 shall be deemed in public practice within this state if it
14.13 performs professional accounting services for a fee. A
14.14 certified public accountant shall be deemed in public practice
14.15 within this state if the accountant performs professional
14.16 accounting services for a fee within this state to the extent
14.17 required by sections 326.165 to 326.229.
14.18 Subd. 4. [TAX CLEARANCE CERTIFICATE.] (a) Notwithstanding
14.19 subdivisions 1 and 2, the board may not issue or renew a license
14.20 under sections 326.165 to 326.229 if the commissioner of revenue
14.21 notifies the board and the licensee or applicant for a license
14.22 that the licensee or applicant owes the state delinquent taxes
14.23 in the amount of $500 or more. The board may issue or renew the
14.24 license only if (1) the commissioner of revenue issues a tax
14.25 clearance certificate and (2) the commissioner of revenue or the
14.26 licensee or applicant forwards a copy of the clearance to the
14.27 board. The commissioner of revenue may issue a clearance
14.28 certificate only if the licensee or applicant does not owe the
14.29 state any uncontested delinquent taxes.
14.30 (b) For purposes of this subdivision, the following terms
14.31 have the meanings given.
14.32 (1) "Taxes" are all taxes payable to the commissioner of
14.33 revenue, including penalties and interest due on those taxes.
14.34 (2) "Delinquent taxes" do not include a tax liability if
14.35 (i) an administrative or court action that contests the amount
14.36 or validity of the liability has been filed or served, (ii) the
15.1 appeal period to contest the tax liability has not expired, or
15.2 (iii) the licensee or applicant has entered into a payment
15.3 agreement to pay the liability and is current with the payments.
15.4 (c) When a licensee or applicant is required to obtain a
15.5 clearance certificate under this subdivision, a contested case
15.6 hearing must be held if the licensee or applicant requests a
15.7 hearing in writing to the commissioner of revenue within 30 days
15.8 of the date of the notice provided in paragraph (a). The
15.9 hearing must be held within 45 days of the date the commissioner
15.10 of revenue refers the case to the office of administrative
15.11 hearings. Notwithstanding any law to the contrary, the licensee
15.12 or applicant must be served with 20 days' notice in writing
15.13 specifying the time and place of the hearing and the allegations
15.14 against the licensee or applicant. The notice may be served
15.15 personally or by mail.
15.16 (d) The board shall require all licensees or applicants to
15.17 provide their social security number and Minnesota business
15.18 identification number on all license applications. Upon request
15.19 of the commissioner of revenue, the board must provide to the
15.20 commissioner of revenue a list of all licensees and applicants,
15.21 including the name and address, social security number, and
15.22 business identification number. The commissioner of revenue may
15.23 request a list of the licensees and applicants no more than once
15.24 each calendar year.
15.25 Sec. 7. [326.201] [PRACTICE MONITORING.]
15.26 The board shall, by rule adopted under authority granted in
15.27 section 326.18, subdivision 3, provide for a practice monitoring
15.28 program designed to ensure the competency of licensees engaged
15.29 in the practice of public accountancy in this state. The
15.30 program shall be designed to promote remediation of deficiencies
15.31 in lieu of removal from or restriction of practice. However,
15.32 this shall not be construed to prohibit the board from imposing
15.33 discipline, including removal from or restriction of practice,
15.34 where necessary and appropriate to protect the public. The
15.35 board may determine which classes of licensees and what types of
15.36 practice shall be subject to practice monitoring based on the
16.1 need to protect the public. For those licensees subject to the
16.2 rules, renewal of the license is conditional upon compliance
16.3 with the rules.
16.4 Sec. 8. Minnesota Statutes 1996, section 326.211, is
16.5 amended to read:
16.6 326.211 [PROHIBITED ACTS.]
16.7 Subdivision 1. [CERTIFIED PUBLIC ACCOUNTANT; USE OF TITLE
16.8 BY INDIVIDUAL.] Except as permitted by the board, no person
16.9 shall assume or use the title or designation "certified public
16.10 accountant," or the abbreviation "C.P.A. CPA" or any other
16.11 title, designation, words, letters, abbreviation, sign, card, or
16.12 device tending to indicate or imply that the person is a
16.13 certified public accountant, unless the person has received a
16.14 certificate as a certified public accountant under sections
16.15 326.17 326.165 to 326.229, holds a license issued under sections
16.16 326.17 326.165 to 326.229 which is not revoked or suspended, and
16.17 has all offices in this state for the practice of public
16.18 accounting maintained and licensed as to the extent required
16.19 under section 326.20 by sections 326.165 to 326.229.
16.20 Subd. 2. [CERTIFIED PUBLIC ACCOUNTANT; USE OF TITLE BY
16.21 INDIVIDUAL ENTITY.] No partnership or, corporation, or limited
16.22 liability company or partnership shall assume or use the title
16.23 or designation "certified public accountant," or the
16.24 abbreviation "C.P.A. CPA," or any other title, designation,
16.25 words, letters, abbreviation, sign, card, or device tending to
16.26 indicate or imply that the partnership or, corporation, or
16.27 limited liability company or partnership is composed of
16.28 certified public accountants, unless the partnership or,
16.29 corporation, or limited liability company or partnership is
16.30 licensed as a partnership or, corporation, or limited liability
16.31 company or partnership of certified public accountants under
16.32 section 326.20 326.192 and all offices of the partnership or,
16.33 corporation, or limited liability company or partnership in this
16.34 state for the practice of public accounting are maintained and
16.35 licensed as required under section 326.20 326.192.
16.36 Subd. 3. [LICENSED PUBLIC ACCOUNTANT; USE OF TITLE BY
17.1 INDIVIDUAL.] No person shall assume or use the title or
17.2 designation "licensed public accountant" or any other title,
17.3 designation, words, letters, abbreviation, sign, card, or device
17.4 tending to indicate or imply that the person is a licensed
17.5 public accountant, unless the person is licensed as a licensed
17.6 public accountant under section 326.191 326.20, and all of the
17.7 person's offices in this state for the practice of public
17.8 accounting are maintained and licensed as required under section
17.9 326.20 326.192, or unless the person has received a certificate
17.10 as a certified public accountant under section 326.19, holds a
17.11 license issued under section 326.19 or 326.20, and all of the
17.12 person's offices in this state for the practice of public
17.13 accounting are maintained and licensed as required under section
17.14 326.20 326.192.
17.15 Subd. 4. [LICENSED PUBLIC ACCOUNTANT; USE OF TITLE BY
17.16 PARTNERSHIP OR CORPORATION ENTITY.] No partnership or,
17.17 corporation, or limited liability company or partnership shall
17.18 assume or use the title or designation "licensed public
17.19 accountant" or any other title, designation, words, letters,
17.20 abbreviation, sign, card, or device tending to indicate or imply
17.21 that the partnership or, corporation, or limited liability
17.22 company or partnership is composed of licensed public
17.23 accountants, unless the partnership or, corporation, or limited
17.24 liability company or partnership is licensed as a partnership,
17.25 corporation, or limited liability company or partnership of
17.26 licensed public accountants under section 326.20 326.192, and
17.27 all offices of the partnership or, corporation, or limited
17.28 liability company or partnership in this state for the practice
17.29 of public accounting are maintained and licensed as required
17.30 under section 326.20 326.192.
17.31 Subd. 5. [PROHIBITED AND PERMITTED TITLES.] No person,
17.32 partnership, or corporation, or limited liability company or
17.33 partnership shall assume or use the title or designation
17.34 "certified accountant," "chartered accountant," "enrolled
17.35 accountant," "licensed accountant," "public accountant,"
17.36 "accredited accountant," "accounting practitioner," "registered
18.1 accountant," or any other title or designation likely to be
18.2 confused with "certified public accountant," or "licensed public
18.3 accountant," or any of the abbreviations "C.A. CA," "L.A. LA,"
18.4 "P.A. PA," "R.A. RA," "A.A. AA," "A.P. AP," or similar
18.5 abbreviations likely to be confused with "C.P.A. CPA" or "L.P.A
18.6 LPA." Anyone who holds a current license issued under sections
18.7 326.18 and section 326.19 or 326.20 and all of whose offices in
18.8 this state for the practice of public accounting are maintained
18.9 and licensed as required under section 326.20 326.192 may hold
18.10 out to the public as an "auditor."
18.11 Subd. 6. [FINANCIAL STATEMENT BY INDIVIDUAL.] No person's
18.12 name shall be signed or affixed by the person nor shall any
18.13 trade or assumed name be used by the person professionally or in
18.14 business to any opinion or certificate attesting in any way to
18.15 the reliability of any representation or estimate in regard to
18.16 any person or organization embracing (1) financial information,
18.17 or (2) facts respecting compliance with conditions established
18.18 by law or contract, including, but not limited to, statutes,
18.19 ordinances, rules, grants, loans, and appropriations, together
18.20 with any wording accompanying or contained in the opinion or
18.21 certificate, which indicates (a) that the person is an
18.22 accountant or auditor or (b) that the person has expert
18.23 knowledge in accounting or auditing, without holding a current
18.24 license issued under section 326.19 or 326.20 and all of the
18.25 person's offices in this state for the practice of public
18.26 accounting are maintained and licensed under section 326.20
18.27 326.192. The provisions of this subdivision shall not prohibit
18.28 any officer, employee, partner, or principal of any organization
18.29 from affixing that person's signature to any statement or report
18.30 in reference to the affairs of the organization with any wording
18.31 designating the position, title, or office which the person
18.32 holds in the organization, nor shall the provisions of this
18.33 subdivision prohibit any act of a public official or public
18.34 employee in the performance of duties.
18.35 Subd. 7. [FINANCIAL STATEMENT BY PARTNERSHIP OR,
18.36 CORPORATION, OR LIMITED LIABILITY COMPANY OR PARTNERSHIP.] No
19.1 person shall sign or affix a partnership or, corporate, or
19.2 limited liability company or partnership name to any opinion or
19.3 certificate attesting in any way to the reliability of any
19.4 representation or estimate in regard to any person or
19.5 organization embracing (a) financial information, or (b) facts
19.6 respecting compliance with conditions established by law or
19.7 contract, including, but not limited to, statutes, ordinances,
19.8 rules, grants, loans, and appropriations, together with any
19.9 wording accompanying or contained in the opinion or certificate
19.10 which indicates that the partnership or, corporation, or limited
19.11 liability company or partnership is composed of or employs (1)
19.12 accountants, or auditors or (2), persons having expert knowledge
19.13 in accounting or auditing, unless the partnership or,
19.14 corporation, or limited liability company or partnership is
19.15 licensed under sections 326.17 to 326.229.
19.16 Subd. 8. [AUDITOR; USE OF TITLE.] No person,
19.17 partnership or, corporation, or limited liability company or
19.18 partnership not licensed under section 326.18 sections 326.19 to
19.19 326.20 shall assume or use the title "auditor" on any sign,
19.20 card, letterhead, or in any advertisement or directory without
19.21 indicating thereon or therein that the person, partnership or,
19.22 corporation, or limited liability company or partnership does
19.23 not hold such a license, provided that this subdivision shall
19.24 not prohibit any officer, employee, partner, or principal of any
19.25 organization from being described by the position, title, or
19.26 office that person holds in the organization, nor shall this
19.27 subdivision prohibit any act of a public official or public
19.28 employee in the performance of duties.
19.29 Subd. 9. [TITLE INDICATING PARTNERSHIP OR, CORPORATION, OR
19.30 LIMITED LIABILITY COMPANY OR PARTNERSHIP.] (a) No person shall
19.31 assume or use the title or designation "certified public
19.32 accountant" or "licensed public accountant" in conjunction with
19.33 names indicating or implying that there is a partnership or,
19.34 corporation, or limited liability company or partnership, if
19.35 there is no bona fide partnership or, corporation, or limited
19.36 liability company or partnership licensed under section 326.20
20.1 326.192.
20.2 (b) No person shall assume or use the title or designation
20.3 "certified public accountant" or "licensed public accountant" in
20.4 conjunction with the designation "and Company," "and Co.," "and
20.5 Associates," "Co.," or a similar designation if, in any such
20.6 case, there is in fact no bona fide partnership or, corporation,
20.7 or limited liability company or partnership with more than one
20.8 shareholder licensed under section 326.20 326.192.
20.9 (c) A sole proprietor, partnership, or corporation lawfully
20.10 using the title or designation in conjunction with the names or
20.11 designation on July 1, 1992, may continue to do so if otherwise
20.12 in compliance with the provisions of sections 326.165 to 326.229
20.13 until December 31, 1999.
20.14 Subd. 10. [UNLICENSED CORPORATION; PROHIBITED USE OF
20.15 TITLE.] No partnership, corporation, or limited liability
20.16 company or partnership, other than one licensed under sections
20.17 326.17 326.165 to 326.229, and in compliance with the rules of
20.18 the board, shall style itself as certified public accountants or
20.19 licensed public accountants, or use the abbreviation
20.20 "C.P.A. CPA" or "L.P.A. LPA" in connection with its corporate
20.21 name.
20.22 Sec. 9. Minnesota Statutes 1996, section 326.212,
20.23 subdivision 1, is amended to read:
20.24 Subdivision 1. [EMPLOYEES; ASSISTANTS.] Nothing contained
20.25 in sections 326.17 326.165 to 326.229 shall prohibit any person
20.26 not a certified public accountant or licensed public accountant
20.27 from serving as an employee of, or an assistant to, a certified
20.28 public accountant or licensed public accountant, or
20.29 partnership or, corporation, or limited liability company or
20.30 partnership composed of certified public accountants or licensed
20.31 public accountants, provided that the person shall not issue any
20.32 accounting or financial statement over the person's name.
20.33 Sec. 10. Minnesota Statutes 1996, section 326.212,
20.34 subdivision 4, is amended to read:
20.35 Subd. 4. [PERSONS PREPARING UNAUDITED FINANCIAL
20.36 STATEMENTS.] Nothing contained in sections 326.165 to 326.229
21.1 shall prohibit any person, partnership or, corporation, or
21.2 limited liability company or partnership, not licensed under
21.3 sections 326.165 to 326.229, from preparing and presenting
21.4 unaudited financial statements and unaudited schedules on
21.5 printed forms or the letterheads letterhead of the preparer if
21.6 they are clearly marked on each page, "unaudited." Any person
21.7 or entity who prepares unaudited financial statements and
21.8 unaudited schedules for a client for a fee is subject to section
21.9 326.229 and the practice of the person or entity may be
21.10 disciplined by the board as provided for in section 326.229.
21.11 The board may discipline a person or entity based on violations
21.12 of sections 326.165 to 326.229, the board's rules, or
21.13 misrepresentations made by such person or entity regarding the
21.14 work the person or entity performed.
21.15 Sec. 11. Minnesota Statutes 1996, section 326.212,
21.16 subdivision 5, is amended to read:
21.17 Subd. 5. [TAX RETURNS.] Nothing contained in sections
21.18 326.165 to 326.229 shall prohibit any person, partnership or,
21.19 corporation, or limited liability company or partnership, not
21.20 licensed under sections 326.165 to 326.229, from preparing tax
21.21 returns.
21.22 Sec. 12. Minnesota Statutes 1996, section 326.212, is
21.23 amended by adding a subdivision to read:
21.24 Subd. 6. [MAINTAIN OR SURRENDER LICENSE.] Once licensed, a
21.25 certified public accountant or licensed public accountant in
21.26 order to perform any of the services listed in section 326.165,
21.27 subdivision 2, shall maintain an active license.
21.28 Sec. 13. Minnesota Statutes 1996, section 326.22,
21.29 subdivision 2, is amended to read:
21.30 Subd. 2. [ANNUAL LICENSE FEE.] Each person or,
21.31 partnership, corporation, or limited liability company or
21.32 partnership to whom a license is issued shall pay a renewal fee
21.33 at the rate set by the board for such year.
21.34 Sec. 14. Minnesota Statutes 1996, section 326.223, is
21.35 amended to read:
21.36 326.223 [EQUIVALENCY.]
22.1 Whenever any statute or rule, city charter, ordinance, or
22.2 other similar statute or rule of any other political subdivision
22.3 of the state of Minnesota specifically requires professional
22.4 services to be performed by a certified public accountant, the
22.5 requirement shall be construed to mean certified public
22.6 accountant or licensed public accountant.
22.7 Sec. 15. Minnesota Statutes 1996, section 326.228, is
22.8 amended to read:
22.9 326.228 [COMPLAINT COMMITTEE.]
22.10 The board shall establish a complaint committee to
22.11 investigate, mediate, or initiate administrative or legal
22.12 proceedings on behalf of the board with respect to complaints
22.13 filed with or information received by the board alleging or
22.14 indicating violations of sections 326.165 to 326.229. The
22.15 complaint committee shall consist of three members of the board,
22.16 one of whom shall be a certified public accountant, and one of
22.17 whom shall be a licensed public accountant. When the licensed
22.18 public accountants lose their representation on the board
22.19 pursuant to section 326.17, the complaint committee shall
22.20 consist of three members of the board, two of whom shall be
22.21 certified public accountants.
22.22 Sec. 16. Minnesota Statutes 1996, section 326.229,
22.23 subdivision 3, is amended to read:
22.24 Subd. 3. [CEASE AND DESIST ORDERS.] (a) The board, or the
22.25 complaint committee if authorized by the board, may issue and
22.26 have served upon a licensee who has previously been subject to a
22.27 disciplinary order by the board, an unlicensed person or, an
22.28 unlicensed certificate holder, or a firm an order requiring the
22.29 licensee, unlicensed person or, unlicensed certificate holder,
22.30 or firm to cease and desist from the act or practice
22.31 constituting a violation of the statute, rule, or order. The
22.32 order shall be calculated to give reasonable notice of the
22.33 rights of the licensee, unlicensed person, or unlicensed
22.34 certificate holder, or firm to request a hearing and shall state
22.35 the reasons for the entry of the order. No such order shall be
22.36 issued until an investigation of the facts has been conducted
23.1 pursuant to section 214.10.
23.2 (b) Service of the order is effective when the order is
23.3 served on the licensee, unlicensed person, unlicensed
23.4 certificate holder, firm, or counsel of record personally or by
23.5 certified mail to the most recent address provided to the board
23.6 for the licensee, unlicensed person, unlicensed certificate
23.7 holder, firm, or counsel of record.
23.8 (c) Unless otherwise agreed by the board, or the complaint
23.9 committee if authorized by the board, and the person requesting
23.10 the hearing, the hearing shall be held no later than 30 days
23.11 after the request for the hearing is received by the board.
23.12 (d) The administrative law judge shall issue a report
23.13 within 30 days of the close of the contested case hearing
23.14 record, notwithstanding Minnesota Rules, part 1400.8100, subpart
23.15 3. Within 30 days after receiving the report and any exceptions
23.16 to it, the board shall issue a further order vacating,
23.17 modifying, or making permanent the cease and desist orders as
23.18 the facts require.
23.19 (e) If no hearing is requested within 30 days of service of
23.20 the order, the order becomes final and remains in effect until
23.21 it is modified or vacated by the board.
23.22 (f) If the person to whom a cease and desist order is
23.23 issued fails to appear at the hearing after being duly notified,
23.24 the person is in default and the proceeding may be determined
23.25 against that person upon consideration of the cease and desist
23.26 order, the allegations of which may be considered to be true.
23.27 (g) In lieu of or in addition to the order provided in
23.28 paragraph (a), the board may require the applicant, licensee,
23.29 unlicensed certificate holder, or firm to provide to the board a
23.30 true and complete list of the person's clientele so that they
23.31 can, if deemed necessary, be notified of the board's action.
23.32 Failure to do so, or to provide an incomplete or inaccurate
23.33 list, is an act discreditable.
23.34 Sec. 17. Minnesota Statutes 1996, section 326.229,
23.35 subdivision 4, is amended to read:
23.36 Subd. 4. [ACTIONS AGAINST APPLICANTS, LICENSEES, OR
24.1 CERTIFICATE HOLDERS.] (a) The board may, by order, deny, refuse
24.2 to renew, suspend for not more than five years, temporarily
24.3 suspend, or revoke the application, certificate, or license of a
24.4 person; censure or reprimand that person; prohibit that person
24.5 from preparing tax returns or unaudited financial statements;
24.6 refuse to permit a person to sit for examination, or refuse to
24.7 release the person's examination grades if the board finds that
24.8 the order is in the public interest and that, based on a
24.9 preponderance of the evidence presented, the applicant,
24.10 licensee, or certificate holder:
24.11 (1) has violated a statute, rule, or order that the board
24.12 has issued or is empowered to enforce;
24.13 (2) has engaged in conduct or acts that are fraudulent,
24.14 deceptive, or dishonest whether or not the conduct or acts
24.15 relate to the practice of public accounting, providing that the
24.16 fraudulent, deceptive, or dishonest conduct or acts reflect
24.17 adversely on the person's ability or fitness to engage in the
24.18 practice of public accounting;
24.19 (3) has engaged in conduct or acts that are negligent or
24.20 otherwise in violation of the standards established by Minnesota
24.21 Rules, parts 1100.4700 and 1100.4800, where the conduct or acts
24.22 relate to the practice of public accounting;
24.23 (4) has been convicted of or, has pled guilty or nolo
24.24 contendere to, or is sentenced as a result of the commission of
24.25 a felony or crime, an element of which is dishonesty or fraud,
24.26 or has been shown to have or admitted to having engaged in acts
24.27 or practices tending to show that the applicant, licensee, or
24.28 certificate holder is incompetent or has engaged in conduct
24.29 reflecting adversely on the person's ability or fitness to
24.30 engage in the practice of public accounting whether or not a
24.31 plea was entered or withheld;
24.32 (5) employed fraud or deception in obtaining a certificate,
24.33 license, renewal, or reinstatement or in passing all or a
24.34 portion of the examination;
24.35 (6) has had the person's public accounting license,
24.36 certificate, right to examine, or other similar authority
25.1 revoked, suspended, canceled, limited, or not renewed for cause,
25.2 or has committed unprofessional acts for which the person was
25.3 otherwise disciplined or sanctioned, including, but not limited
25.4 to, being ordered to or agreeing to cease and desist from
25.5 prescribed conduct, in any state, commonwealth, or territory of
25.6 the United States, in the District of Columbia, or in any
25.7 foreign country;
25.8 (7) has had the person's right to practice before any
25.9 federal, state, or other government agency revoked, suspended,
25.10 canceled, limited, or not renewed for cause, or has committed
25.11 unprofessional acts for which the person was otherwise
25.12 disciplined or sanctioned, including, but not limited to, being
25.13 ordered to or agreeing to cease and desist from prescribed
25.14 conduct;
25.15 (8) failed to meet any requirement for the issuance or
25.16 renewal of the person's license or certificate; or
25.17 (9) with respect to temporary suspension orders, has
25.18 committed an act, engaged in conduct, or committed practices
25.19 that may result or may have resulted, in the opinion of the
25.20 board or the complaint committee if authorized by the board, in
25.21 an immediate threat to the public.
25.22 (b) In lieu of or in addition to any remedy provided in
25.23 paragraph (a), the board may require, as a condition of
25.24 continued licensure, possession of certificate, termination of
25.25 suspension, reinstatement of license or certificate,
25.26 examination, or release of examination grades, that the person:
25.27 (1) submit to a quality review of the person's ability,
25.28 skills, or quality of work, conducted in such fashion and by
25.29 such persons, entity, or entities as the board may require; and
25.30 (2) complete to the satisfaction of the board such
25.31 continuing professional education courses as the board may
25.32 specify.
25.33 (c) Service of the order is effective if the order is
25.34 served on the applicant, licensee, firm, certificate holder,
25.35 person, or counsel of record personally or by certified mail to
25.36 the most recent address provided to the board for the licensee,
26.1 certificate holder, applicant, person, or counsel of record.
26.2 The order shall state the reasons for the entry of the order.
26.3 (d) All hearings required by this subdivision shall be
26.4 conducted in accordance with chapter 14 except with respect to
26.5 temporary suspension orders, as provided for in subdivision 5,
26.6 paragraph (e).
26.7 Sec. 18. Minnesota Statutes 1996, section 326.229, is
26.8 amended by adding a subdivision to read:
26.9 Subd. 4a. [OTHER ACTIONS AGAINST APPLICANTS, LICENSEES, OR
26.10 CERTIFICATE HOLDERS.] (a) In addition to the remedies authorized
26.11 by subdivision 4, the board may enter into an agreement with the
26.12 applicant, licensee, or certificate holder for corrective action
26.13 and may unilaterally issue a warning to an applicant, licensee,
26.14 or certificate holder.
26.15 (b) The board shall not use agreements for corrective
26.16 action or warnings in any situation where the applicant,
26.17 licensee, or certificate holder has been convicted of or pled
26.18 guilty or nolo contendere to a felony or crime and such felony
26.19 or crime is the basis of the board's action against the
26.20 applicant, licensee, or certificate holder; where the conduct of
26.21 the applicant, licensee, or certificate holder indicates a
26.22 pattern of repeated violations of subdivision 4, paragraph (a),
26.23 or the rules of the board; or where the board concludes that the
26.24 conduct of the applicant, licensee, or certificate holder will
26.25 not be deterred other than by disciplinary action pursuant to
26.26 subdivision 3, 4, or 5.
26.27 (c) Agreements for corrective action may be used by the
26.28 board, or the complaint committee if authorized by the board,
26.29 where the violation committed by the applicant, licensee, or
26.30 certificate holder does not warrant disciplinary action pursuant
26.31 to subdivision 3, 4, or 5, but where the board, or the complaint
26.32 committee if authorized by the board, determines that corrective
26.33 action is required to prevent further such violations and to
26.34 otherwise protect the public. Warnings may be used by the
26.35 board, or the complaint committee if authorized by the board,
26.36 where the violation of the application, licensee, or certificate
27.1 holder is de minimis, does not warrant disciplinary action
27.2 pursuant to subdivision 3, 4, or 5, and does not require
27.3 corrective action to protect the public.
27.4 (d) Agreements for corrective action shall not be
27.5 considered disciplinary action against the person's application,
27.6 license, or certificate. However, agreements for corrective
27.7 action are public data. Warnings shall not be considered
27.8 disciplinary action against the person's application, license,
27.9 or certificate and are private data.
27.10 Sec. 19. Minnesota Statutes 1996, section 326.229,
27.11 subdivision 6, is amended to read:
27.12 Subd. 6. [VIOLATION; PENALTIES; COSTS OF PROCEEDING.] (a)
27.13 The board may impose a civil penalty not to exceed $2,000 per
27.14 violation upon a person who violates an order, statute, or rule
27.15 that the board has issued or is empowered to enforce.
27.16 (b) The board may, in addition, impose a fee to reimburse
27.17 the board for all or part of the cost of the proceedings,
27.18 including reasonable investigative costs, resulting in
27.19 disciplinary or corrective action authorized by this section,
27.20 the imposition of civil penalties, or the issuance of a cease
27.21 and desist order. The fee may be imposed when the board shows
27.22 that the position of the person who violates a statute, rule, or
27.23 order that the board has issued or is empowered to enforce is
27.24 not substantially justified, unless special circumstances make
27.25 an award unjust, notwithstanding the provisions of Minnesota
27.26 Rules, part 1400.8401. The costs include, but are not limited
27.27 to, the amount paid by the board for services from the office of
27.28 administrative hearings, attorney and reasonable investigative
27.29 fees, court reporters, witnesses, reproduction of records, board
27.30 members' per diem compensation, board staff time, and expense
27.31 incurred by board members and staff.
27.32 (c) All hearings required by this subdivision shall be
27.33 conducted in accordance with chapter 14.
27.34 Sec. 20. [INSTRUCTION TO REVISOR.]
27.35 The revisor shall renumber the definitions in Minnesota
27.36 Statutes, section 326.165, in alphabetical order, as a separate
28.1 section and shall correct references to those sections in
28.2 Minnesota Statutes and Minnesota Rules.
28.3 Sec. 21. [REPEALER.]
28.4 Minnesota Statutes 1996, sections 326.191; 326.21; and
28.5 326.225, are repealed.