SF 1536

as introduced - 94th Legislature (2025 - 2026) Posted on 03/21/2025 08:52am

A bill for an act
relating to state government; modifying standards for required education and
experience for certified public accountants; establishing reciprocity for licensed
public accountants; amending Minnesota Statutes 2024, sections 326A.03,
subdivision 6, by adding subdivisions; 326A.14; repealing Minnesota Rules, part
1105.7900, item D.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 326A.03, subdivision 6, is amended to read:

Subd. 6.

Certificate; required education and experience new text begin until July 1, 2030 new text end .

(a) On
or after July 1, 2006 new text begin , and before July 1, 2030 new text end , a person who has passed the examination
required in this section must be granted a certificate as a certified public accountant provided:
(1) the person certifies to the board that the person has completed at least 150 semester or
225 quarter hours at a college or university that is fully accredited by a recognized accrediting
agency listed with the United States Department of Education, or an equivalent accrediting
association, and has completed at least one year of experience of the type specified in
paragraph (b); (2) the board verifies the certifications; and (3) the person complies with
requirements for initial issuance of the certificate as a certified public accountant as
prescribed by the board by rule.

(b) An applicant for initial issuance of a certificate under this subdivision shall show
that the applicant has had one year of experience. Acceptable experience includes providing
any type of service or advice involving the use of accounting, attest, compilation,
management advisory, financial advisory, tax, or consulting skills, as verified by a licensee
and meeting requirements prescribed by the board by rule. Acceptable experience may be
gained through employment in government, industry, academia, or public practice.
Experience as an auditor in the Office of the Legislative Auditor or State Auditor, as verified
by a licensee, shall be acceptable experience.

new text begin (c) This section expires July 1, 2030.
new text end

Sec. 2.

Minnesota Statutes 2024, section 326A.03, is amended by adding a subdivision to
read:

new text begin Subd. 6a. new text end

new text begin Certificate; required education and experience after June 30, 2030. new text end

new text begin (a)
On and after July 1, 2030, the board must grant a certificate as a certified public accountant
to a person who has passed the examination required in this section if:
new text end

new text begin (1) the person certifies to the board that the person has completed a master's degree at
a college or university that is fully accredited by a recognized accrediting agency listed with
the United States Department of Education and has completed at least one year of acceptable
experience described in paragraph (b); or
new text end

new text begin (2) the person certifies to the board that the person has earned a bachelor's degree from
a college or university that is fully accredited by a recognized accrediting agency listed with
the United States Department of Education and has completed at least two years of acceptable
experience described in paragraph (b).
new text end

new text begin (b) Acceptable experience includes providing any type of service or advice that involves
accounting, attest, compilation, management advisory, financial advisory, tax, or consulting
skills, as verified by a licensee and meeting requirements prescribed by the board by rule.
Acceptable experience may be gained through employment in government, industry,
academia, or public practice. Experience as an auditor in the Office of the Legislative Auditor
or the Office of the State Auditor, as verified by a licensee, is acceptable experience.
new text end

Sec. 3.

Minnesota Statutes 2024, section 326A.03, is amended by adding a subdivision to
read:

new text begin Subd. 6b. new text end

new text begin Transitional period. new text end

new text begin (a) Until July 1, 2030, a person must be granted a
certificate as a certified public accountant if the person meets either:
new text end

new text begin (1) all requirements under subdivision 6; or
new text end

new text begin (2) all requirements under subdivision 6a.
new text end

new text begin (b) This section expires July 1, 2030.
new text end

Sec. 4.

Minnesota Statutes 2024, section 326A.14, is amended to read:

326A.14 SUBSTANTIAL EQUIVALENCY new text begin ; RECIPROCITY new text end .

Subdivision 1.

Requirements.

(a) An individual whose principal place of business is
not in this state deleted text begin and who holds a valid license in good standing as a certified public accountant
from any state which, upon verification, is in substantial equivalence with the certified
public accountant licensure requirements of section 326A.03, subdivisions 3, 4, and 6, deleted text end shall
be presumed to have qualifications substantially equivalent to this state's requirements and
shall have all the privileges of licensees of this state without the need to obtain a license deleted text begin . deleted text end new text begin ,
if the person:
new text end

new text begin (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;
new text end

new text begin (2) has a bachelor's degree from an accredited postsecondary school with an accounting
concentration or equivalent as determined by the board by rule; and
new text end

new text begin (3) has passed the Uniform CPA Examination.
new text end

new text begin (b) new text end 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 this paragraph: (1) shall 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.

deleted text begin (b) An individual whose principal place of business is not in this state and who holds a
valid license in good standing as a certified public accountant from any state whose certified
public accountant licensure qualifications, upon verification, are not substantially equivalent
with the licensure requirements of section 326A.03, subdivisions 3, 4, and 6, shall be
presumed to have qualifications substantially equivalent to this state's requirements and
shall have all the privileges of licensees of this state without the need to obtain a license if
the individual obtains verification, as specified in board rule, that the individual's
qualifications are substantially equivalent to the licensure requirements of section 326A.03,
subdivisions 3, 4, and 6. For purposes of this paragraph, any individual who passed the
Uniform CPA Examination and holds a valid license issued by any other state prior to
January 1, 2009, is exempt from the education requirement in section 326A.03, subdivision
6, paragraph (a), provided the individual meets the education requirement in section 326A.03,
subdivision 3. 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 this paragraph: (1) shall, after the verification specified by adopted rules, 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.
deleted text end

(c) An individual licensee of another state exercising the privilege afforded under this
section and the firm which 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 entity with its headquarters in this state, may only do so through a firm which has
obtained a permit under section 326A.05.

Subd. 2.

Use of title in another state.

A licensee of this state offering or rendering
services or using the CPA title in another state is subject to the same disciplinary action in
this state for which the licensee would be subject to discipline for an act committed in the
other state. The board shall investigate any complaint made by the board of accountancy
of another state.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5. new text begin REPEALER; SUBSTANTIAL EQUIVALENCE.
new text end

new text begin Minnesota Rules, part 1105.7900, item D, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

APPENDIX

Repealed Minnesota Rule: 25-02377

1105.7900 SUBSTANTIAL EQUIVALENCY.

D.

Individuals required by Minnesota Statutes, section 326A.14, subdivision 1, paragraph (b), to obtain a verification that their individual qualifications are substantially equivalent to the licensure requirements of Minnesota Statutes, section 326A.03, subdivisions 3, 4, and 6, shall obtain the verification from the NASBA National Qualification Appraisal Service prior to rendering professional services in this state. Documentation supporting this verification must be maintained by the individual for a minimum period of six years and must be submitted to the board upon request.