relating to occupations and professions; modifying provisions governing the
Board of Accountancy;amending Minnesota Statutes 2006, sections 13.411, by
adding a subdivision; 326A.01, subdivisions 2, 12, 17, by adding a subdivision;
326A.02, subdivisions 1, 3, 4, 5, 6, by adding a subdivision; 326A.03; 326A.04;
326A.05, subdivisions 1, 2, 3, 4, 5; 326A.06; 326A.07; 326A.08, subdivisions
2, 4, 5, 6, 7, 8, 9; 326A.10; 326A.12; 326A.13; 326A.14; repealing Minnesota
Statutes 2006, section 326A.05, subdivision 9.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. Minnesota Statutes 2006, section 13.411, is amended by adding a
subdivision to read:
1.12 Subd. 9. Board of Accountancy. Data relating to disciplinary proceedings involving
1.13licensees of the Board of Accountancy are classified under section 326A.08, subdivision 2.
Sec. 2. Minnesota Statutes 2006, section 326A.01, subdivision 2, is amended to read:
Subd. 2. Attest.
"Attest" means to provide the following financial statement
(1) an audit or other engagement performed in accordance with the Statements on
Auditing Standards (SAS);
(2) a review of a financial statement performed in accordance with the Statements on
Standards for Accounting and Review Services (SSARS);
(3) an examination of prospective financial information performed in accordance
with the Statements on Standards for Attestation Engagements (SSAE)
1.23(4) any engagement performed in accordance with auditing and related standards of
1.24the Public Company Accounting Oversight Board.
Sec. 3. Minnesota Statutes 2006, section 326A.01, subdivision 12, is amended to read:
Subd. 12. Peer review.
"Peer review" means
a an independent
study, appraisal, or
review of one or more aspects of the professional work of a
certificate holder or CPA firm
attest or compilation
, or the professional
work of a person registered under section
326A.06, paragraph (b)
a person or persons
2.6 who hold certificates and who are not affiliated with the certificate holder, CPA firm, or
2.7 person being reviewed persons who are not affiliated with the licensee being reviewed
Sec. 4. Minnesota Statutes 2006, section 326A.01, is amended by adding a subdivision
2.10 Subd. 13a. Principal place of business. "Principal place of business" means the
2.11office location designated by the licensee for purposes of substantial equivalency and
2.12reciprocity in this state and in other states.
Sec. 5. Minnesota Statutes 2006, section 326A.01, subdivision 17, is amended to read:
Subd. 17. Substantial equivalency.
"Substantial equivalency" is a determination
by the Board of Accountancy or its designee that the education,
examination, and experience requirements contained in the statutes and administrative
rules of another jurisdiction are comparable to, or exceed the education requirements
2.18in section 326A.03, subdivisions 3 and 6, paragraph (a)
, examination` requirements in
2.19section 326A.03, subdivision 4, paragraph (a)
, and experience requirements
this chapter section 326A.03, subdivision 6, paragraph (b),
or that an individual CPA's
education, examination, and experience qualifications are comparable to or exceed
the education, examination, and experience requirements
. For purposes of ascertaining substantial equivalency under the provisions of
2.24this chapter, the board shall take into account the qualifications of the individual without
2.25regard to the sequence in which experience, education, or examination were attained.
Sec. 6. Minnesota Statutes 2006, section 326A.02, subdivision 1, is amended to read:
Subdivision 1. Board.
A Board of Accountancy is created to carry out the purposes
and enforce the provisions of this chapter. It consists of nine citizens of this state appointed
by the governor. Two must be public members as defined by section
, and seven
must be certified public accountants under the provisions of this chapter. Effective
January 1, 2003, no fewer than five of the certified public accountants must be owners or
employees of a CPA firm that holds a current permit and provides professional services at
the time of appointment and reappointment.
At least No fewer than
two board members,
3.1who may be any
of the seven certified public accountants,
at the time of appointment and
reappointment must be owners or employees of a CPA firm that:
(1) holds a current permit;
(2) provides professional services; and
(3) consists of ten or fewer certified public accountants.
Sec. 7. Minnesota Statutes 2006, section 326A.02, subdivision 3, is amended to read:
Subd. 3. Officers; proceedings.
The board shall elect one of its number as chair,
another as vice-chair, and another as secretary and treasurer. The officers shall hold their
respective offices for a term of one year and until their successors are elected. The
affirmative vote of a majority of the qualified members of the board, or a majority of a
3.11quorum of the board at any meeting duly called,
is considered the action of the board.
The board shall meet at such times and places as may be fixed by the board. Meetings
of the board are subject to chapter 13D. A majority of the board members then in office
constitutes a quorum at any meeting duly called.
The board shall have a seal, which
3.15 must be judicially noticed
. The board shall retain or arrange for the retention of all
applications and all documents under oath that are filed with the board and also records of
its proceedings, and it shall maintain a registry of the names and addresses of all licensees
and registrants under this chapter. In any proceeding in court, civil or criminal, arising
out of or founded upon any provision of this chapter, copies of records of the proceeding
certified as true copies
under the seal of the boards by the board chair or executive director
shall be admissible in evidence as tending to prove the contents of the records.
Sec. 8. Minnesota Statutes 2006, section 326A.02, subdivision 4, is amended to read:
Subd. 4. Powers. The powers and duties of the board shall be as provided in this
3.24chapter or as otherwise provided by law.
The board, or the complaint committee if
3.25authorized by the board,
may issue subpoenas to compel the attendance of witnesses and
the production of documents, to administer oaths, to take testimony, to cooperate with the
appropriate state, federal, foreign regulatory, or law enforcement
in other states
in investigation and enforcement concerning violations of this chapter and comparable
acts of other states, and to receive evidence concerning all matters within the scope of this
chapter. In case of disobedience of a subpoena, the board may invoke the aid of any court
in requiring the attendance and testimony of witnesses and the production of documentary
evidence. The board, its members, and its agents are immune from personal liability for
actions taken in good faith in the discharge of the board's responsibilities, and the state
shall hold the board, its members, and its agents harmless from all costs, damages, and
attorneys fees arising from claims and suits against them with respect to matters to which
such immunity applies. The board shall enforce the
standard of general education, the
4.3 standard of special education in the science and art of accounting, and the standard of
4.4 good character and general experience laws relating to the practice of public accounting
as prescribed in this chapter and rules adopted by the board
Sec. 9. Minnesota Statutes 2006, section 326A.02, subdivision 5, is amended to read:
Subd. 5. Rules.
The board may adopt rules governing its administration and
enforcement of this chapter and the conduct of licensees and persons registered under
326A.06, paragraph (b)
(1) rules governing the board's meetings and the conduct of its business;
(2) rules of procedure governing the conduct of investigations and hearings and
discipline by the board;
(3) rules specifying the educational and experience qualifications required for the
issuance of certificates and the continuing professional education required for renewal
(4) rules of professional conduct directed to controlling the quality and probity
of services by licensees, and dealing among other things with independence, integrity,
and objectivity; competence and technical standards; and responsibilities to the public
and to clients;
(5) rules governing the professional standards applicable to licensees including
adoption of the
standards specified in section
326A.01, subdivision 2
as developed for general application by recognized national accountancy organizations
such as the American Institute of Certified Public Accountants or the Public Company
4.24Accounting Oversight Board
(6) rules governing the manner and circumstances of use of the titles "certified public
accountant," "CPA," "registered accounting practitioner," and "RAP";
(7) rules regarding peer review that may be required to be performed under
provisions of this chapter;
(8) rules on substantial equivalence to implement section
(9) rules regarding the conduct of the certified public accountant examination;
(10) rules regarding the issuance and renewals of certificates, permits, and
(11) rules regarding transition provisions to implement this chapter;
(12) rules specifying the educational and experience qualifications for registration,
rules of professional conduct, rules regarding peer review, rules governing standards for
providing services, and rules regarding the conduct and content of examination for those
persons registered under section
326A.06, paragraph (b)
(13) rules regarding fees for examinations, certificate issuance and renewal, firm
permits, registrations under section
326A.06, paragraph (b)
, notifications made under
, and late processing fees
5.6(14) upon any change to this chapter, if the board determines a change in Minnesota
5.7Rules is required, the board may initiate the expedited process under section 14.389 up to
5.8one year after the effective date of the change to this chapter.
Sec. 10. Minnesota Statutes 2006, section 326A.02, subdivision 6, is amended to read:
Subd. 6. Complaint committee.
The board shall establish a complaint committee
to investigate, mediate, or initiate administrative or legal proceedings on behalf of the
board with respect to complaints filed with or information received by the board alleging
or indicating violations of this chapter or rules adopted by the board
. The complaint
committee shall consist of three members of the board.
Sec. 11. Minnesota Statutes 2006, section 326A.02, is amended by adding a
subdivision to read:
5.17 Subd. 8. Executive director. The board shall appoint an executive director to
5.18assist the board in performing its duties.
Sec. 12. Minnesota Statutes 2006, section 326A.03, is amended to read:
5.20326A.03 CERTIFIED PUBLIC ACCOUNTANT QUALIFICATIONS.
Subdivision 1. Qualifications.
The certificate of certified public accountant shall
be granted to persons of good moral character who meet the education, experience, and
examination requirements of this section and rules adopted under it and who apply
Good moral character for purposes of this
means the propensity to
5.26provide professional services in a fair, honest, and trustworthy manner and a
a history of dishonest or felonious acts. The board may refuse to grant a certificate on
the ground of failure to satisfy this requirement only if there is a substantial connection
between the lack of good moral character of the applicant and the professional
responsibilities of a licensee and if the finding by the board of lack of good moral
character is supported by clear and convincing evidence. When an applicant is found to
be unqualified for a certificate because of a lack of good moral character, the board shall
furnish the applicant a statement containing the findings of the board, a complete record
of the evidence upon which the determination was based, and a notice of the applicant's
right of appeal.
Subd. 2. Examination before July 1, 2006; required education and experience.
Until July 1, 2006, the examination must be administered by the board only to a candidate
(1) holds a master's degree with a major in accounting from a college or university
that is fully accredited by a recognized accrediting agency listed with the United States
Department of Education;
(2) holds a baccalaureate degree, with a major in accounting, from a college or
university that is fully accredited by a recognized accrediting agency listed with the
United States Department of Education or who has in the opinion of the board at least
an equivalent education;
(3) holds a baccalaureate degree from a college or university that is fully accredited
by a recognized accrediting agency listed with the United States Department of Education,
or who has in the opinion of the board at least an equivalent education, provided that at
least one year of experience of the type specified in subdivision 8 has been completed;
(4) provides evidence of having completed two or more years of study with a passing
grade average or above from a college, university, technical college, or a Minnesota
licensed private school that is fully accredited by a recognized accrediting agency listed
with the United States Department of Education, or who has in the opinion of the board
at least an equivalent education, provided that at least three years experience of the type
specified in subdivision 8 has been completed; or
(5) holds a diploma as a graduate of an accredited high school, or who has in the
opinion of the board at least an equivalent education, provided that at least five years
experience of the type specified in subdivision 8 has been completed.
Subd. 3. Examination on or after July 1, 2006; required education.
On or after
July 1, 2006, the examination must be administered by the board only to a candidate who
has a baccalaureate or higher degree, with a major in accounting or a major in business
with accounting emphasis, or an equivalent education, from 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.
6.32 Subd. 3a. Early examination. Notwithstanding any contrary provision in this
6.33section, the board may adopt rules to permit a person under certain circumstances:
6.34(1) to apply for the examination within 180 days prior to the person's anticipated
6.35completion of the education requirements; and
7.1(2) to take all or a part of the examination within 90 days of the anticipated
7.2completion of the education requirements. No credit shall be given for any part of the
7.3examination taken before completion of the education requirements in subdivision 3
7.5(i) the education requirements in subdivision 3 and adopted rule requirements are
7.6met within 120 days after taking any part of the examination; and
7.7(ii) documentation of completion of education requirements is received by the board
7.8within 150 days of the person taking any part of the examination.
Subd. 4. Examination requirements.
(a) The examination required to be passed
as a condition for the granting of a certificate must be held as often as convenient, in the
opinion of the board, and must test the applicant's knowledge of the subjects of accounting
and auditing, and other related subjects that the board may specify by rule, including but
not limited to business law and taxation. The time for holding the examination must be
determined by the board and may be changed from time to time. The board shall prescribe
by rule the methods of applying for and conducting the examination, including methods
for grading and determining a passing grade required of an applicant for a certificate.
However, the board shall to the extent possible ensure that the examination itself, grading
of the examination, and the passing grades, are uniform with those applicable in all other
states. The board may make such use of all or any part of the Uniform Certified Public
Accountant Examination and Advisory Grading Service of the American Institute of
Certified Public Accountants and may contract with third parties to perform administrative
services with respect to the examination that it considers appropriate to assist it in
performing its duties under this paragraph.
(b) The board may charge, or provide for a third party administering the examination
to charge, each applicant a fee.
Subd. 5. Certificate before July 1, 2006; required experience.
Until July 1, 2006,
those persons a person
passed the examination required by this section and
all other requirements for a certificate, including payment of required
fees, must be granted
certificates a certificate
they have the person has
completed the following experience requirements
of the type specified in subdivision 8 in addition to any experience already required in
(1) for those whose educational qualifications meet the requirements of subdivision
2, clause (1), the experience requirement is one year;
(2) for those whose educational qualifications meet the requirements of subdivision
2, clause (2), the experience requirement is two years;
(3) for those whose educational and experience qualifications meet the requirements
of subdivision 2, clause (3), the additional required experience is two years;
(4) for those whose educational and experience qualifications meet the requirements
of subdivision 2, clause (4), the additional required experience is two years; and
(5) for those whose educational and experience qualifications meet the requirements
of subdivision 2, clause (5), the additional required experience is one year.
Subd. 6. Certificate on or after July 1, 2006; required education and experience.
(a) On or after July 1, 2006,
those persons a person
passed the examination
required in this section must be granted
certificates a certificate
they certify: (1) the person certifies
to the board that
they have 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
completed at least one year of experience of the type specified in paragraph (b);
8.15(2) the board verifies the certifications; and (3) the person complies with requirements
8.16for initial issuance of the certificate as a certified public accountant as prescribed by
8.17the 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.
Subd. 7. Equivalent education criteria.
The board, in consultation with the
University of Minnesota, the Minnesota State Colleges and Universities, private colleges,
and private career schools regulated under chapter 141, shall establish criteria to assess
equivalent education for purposes of subdivision 3.
Subd. 8. Qualifying experience until July 1, 2006.
Until July 1, 2006, qualifying
experience includes public accounting experience:
(1) as a staff employee of a certified public accountant, or a firm;
(2) as an auditor in the Office of the Legislative Auditor or State Auditor, or as an
auditor or examiner with any other agency of government, if the experience, in the opinion
of the board, is equally comprehensive and diversified;
(3) as a self-employed public accountant or as a partner in a firm; or
(4) in any combination of the foregoing capacities.
Sec. 13. Minnesota Statutes 2006, section 326A.04, is amended to read:
ISSUED OR RENEWED ISSUANCE AND
9.4RENEWAL; COMPETENCY STANDARD.
Subdivision 1. Eligibility.
The board shall grant or renew certificates to
9.6a person of good moral character
make makes an
9.7 (1) demonstrates
their the person's
qualifications, including where applicable the
qualifications prescribed by section
, are in accordance with this section
; or and
9.9rules adopted by the board.
9.10 (2) that they are eligible under the substantial equivalency standard in section
9.11 326A.14, subdivision 1 , paragraph (b), which requires licensure for those certified public
9.12 accountants who establish their principal places of business in another state.
The holder of
a certificate issued under this section may only provide attest services in a CPA firm that
holds a permit issued under section
Subd. 2. Timing.
(a) Certificates must be initially issued and renewed for periods
of not more than
one year three years
but in any event must expire on
following issuance or renewal in the year prescribed by the board by rule
. Applications for
certificates must be made in the form, and in the case of applications for renewal between
the dates, specified by the board in rule. The board shall grant or deny an application no
later than 90 days after the application is filed in proper form. If the applicant seeks the
opportunity to show that issuance or renewal of a certificate was mistakenly denied, or if
the board is unable to determine whether it should be granted or denied, the board may
issue to the applicant a provisional certificate that expires 90 days after its issuance, or
when the board determines whether or not to issue or renew the certificate for which
application was made, whichever occurs first.
(b) Certificate holders who do not provide professional services and do not use the
certified public accountant designation in any manner are not required to renew their
certificates provided they have notified the board as provided in board rule and comply
with the requirements for nonrenewal as specified in board rule.
9.30(c) Applications for renewal of a certificate that are complete and timely filed with
9.31the board and are not granted or denied by the board before January 1 are renewed on a
9.32provisional basis as of January 1 and for 90 days thereafter, or until the board grants or
9.33denies the renewal of the certificate, whichever occurs first, provided the licensee meets
9.34the requirements in this chapter and rules adopted by the board.
Subd. 3. Residents of other states.
(a) With regard to
applicants an applicant
do must obtain a certificate in this state because the applicant does
under the substantial equivalency standard in section
the board shall issue a certificate to a holder of a certificate, license, or
permit issued by another state upon a showing that:
(1) the applicant passed the examination required for issuance of
the applicant's a
with grades that would have been passing grades at the time
in this state;
(2) the applicant had four years of experience
outside of this state
of the type
described in section
326A.03, subdivision 6
, paragraph (b), if application is made on or
after July 1, 2006, or section
326A.03, subdivision 8
, if application is made before July
1, 2006; or the applicant meets equivalent requirements prescribed by the board by rule,
after passing the examination upon which the applicant's certificate was based and within
the ten years immediately preceding the application;
(3) if the applicant's certificate, license, or permit was issued more than four years
prior to the application for issuance of an initial certificate under this subdivision, that the
applicant has fulfilled the requirements of continuing professional education that would
have been applicable under subdivision 4
10.18(4) the applicant has met the qualifications prescribed by the board by rule.
As an alternative to the requirements of paragraph (a),
A certificate holder
licensed by another state who establishes a principal place of business in this state shall
request the issuance of a certificate from the board prior to establishing the principal place
of business. The board shall issue a certificate to the person if the person's individual
certified public accountant qualifications, upon verification, are substantially equivalent
to the certified public accountant licensure requirements of this chapter or the person
10.25meets equivalent requirements as the board prescribes by rule. Residents of this state
10.26who provide professional services in this state at an office location in this state shall be
10.27considered to have their principal place of business in this state
Subd. 4. Program of learning.
For renewal of a certificate under this section,
Each licensee shall participate in a program of learning designed to maintain professional
competency. The program of learning must comply with rules adopted by the board.
The board may by rule create an exception to this requirement for licensees who do not
perform or offer to perform for the public one or more kinds of services involving the use
of accounting or auditing skills, including issuance of reports on financial statements or of
one or more kinds of management advisory, financial advisory or consulting services, or
the preparation of tax returns or the furnishing of advice on tax matters. A licensee granted
such an exception by the board must place the word "inactive" adjacent to the CPA title
on any business card, letterhead, or any other document or device, with the exception of
the licensee's certificate on which the CPA title appears.
Subd. 5. Fee.
The board shall charge a fee for each application for initial issuance or
renewal of a certificate under this section.
Subd. 6. Other state licenses.
Applicants An applicant
for initial issuance or
certificates a certificate
under this section shall
in their applications
all states in which
they have the applicant has
applied for or
certificates, licenses, or permits,
and list any past denial, revocation, or suspension of a
certificate, license, or permit. Each holder of or applicant for a certificate under this section
shall notify the board in writing, within 30 days after its occurrence, of any issuance,
denial, revocation, or suspension of a certificate, license, or permit by another state.
Subd. 7. Certificates issued by foreign countries.
The board shall issue a
certificate to a holder of a
equivalent foreign country designation,
(1) the foreign authority that granted the designation makes similar provision to
allow a person who holds a valid certificate issued by this state to obtain the foreign
authority's comparable designation;
(2) the foreign designation:
(i) was duly issued by a foreign authority that regulates the practice of public
accountancy and the foreign designation has not expired or been revoked or suspended;
(ii) entitles the holder to issue reports upon financial statements; and
(iii) was issued upon the basis of educational, examination, and experience
requirements established by the foreign authority or by law; and
(3) the applicant:
(i) received the designation, based on educational and examination standards
equivalent to those in effect in this state, at the time the foreign
designation was granted;
(ii) has, within the ten years immediately preceding the application, completed an
experience requirement that is
equivalent to the requirement in
326A.03, subdivision 6
, paragraph (b), if application is made on or after July 1,
2006, or section
326A.03, subdivision 8
, if application is made before July 1, 2006, in
the jurisdiction that granted the foreign designation; completed four years of professional
experience in this state; or met equivalent requirements prescribed by the board by
(iii) passed a uniform qualifying examination in national standards and an
examination on the laws, regulations, and code of ethical conduct in effect in this state
acceptable to as
the board prescribes by rule
Subd. 8. Other jurisdictions in which foreign applicant is licensed.
under subdivision 7 shall list
in the application
all jurisdictions, foreign and domestic,
in which the applicant has applied for or holds a designation to practice public accountancy.
Each holder of a certificate issued under subdivision 7 shall notify the board in writing,
within 30 days after its occurrence, of any issuance, denial, revocation, or suspension of a
designation or commencement of a disciplinary or enforcement action by any jurisdiction.
Subd. 9. Application by foreign certificate holder.
The board has the sole
authority to interpret the application of the provisions of subdivisions 7 and 8.
Subd. 10. Peer review.
The board shall by rule require as a condition for renewal
of a certificate under this section by any certificate holder who performs compilation
services for the public other than through a CPA firm, that the individual undergo, no more
frequently than once every three years, a peer review conducted in a manner specified
by the board in rule. The review shall include verification that the individual has met the
competency requirements set out in professional standards for the services described in
this subdivision as set forth by rule.
Subd. 11. Automatic revocation.
persons a person
their certificates a certificate
for more than two years after
expiration or the certificate of a person who had not reported required experience to the
12.22board by January 1, 2003, and who fails to report the required experience under Minnesota
shall be automatically revoked by order of the board. The orders may be issued by
the board without following the procedures of chapter 14, provided the board notifies each
person by mail at the person's last known address on file with the board at
least three days prior to the issuance of any
order. No notice is required if the last
communication sent by the board to a licensee was returned to the board by the United
States Postal Service as undeliverable and with no forwarding address. Certificates
revoked by the board may be reinstated, if at all, under section
. This subdivision
does not apply to certified public accountants who have notified the board, according to
12.31requirements prescribed by board rule,
that they will not use the CPA designation in any
manner and will not provide professional services.
12.33 Subd. 12. Professional ethics examination. The board shall adopt rules
12.34establishing requirements for a professional ethics examination which must be completed
12.35before an initial certificate is issued under this section.
Sec. 14. Minnesota Statutes 2006, 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 firm must hold a permit issued under this section in order to provide
13.5 attest services or to use the title "CPAs" or "CPA firm."
13.6(a) The following must hold a permit issued under this section:
13.7(1) any firm with an office in this state performing attest services as defined in
13.8section 326A.01, subdivision 2;
13.9(2) to the extent required by section 326A.10, paragraph (k), any firm with an office
13.10in this state performing compilation services as defined in section 326A.01, subdivision 6;
13.11(3) any firm with an office in this state that uses the title "CPA" or "CPA firm"; or
13.12(4) any firm that does not have an office in this state but performs attest services
13.13as described in section 326A.01, subdivision 2, paragraph (1), (3), or (4), for a client
13.14having its headquarters in this state.
13.15(b) A firm possessing a valid permit from another state which does not have an office
13.16in this state may perform services described in section 326A.01, subdivision 2, clause (2),
13.17or subdivision 6, for a client having its headquarters in this state and may use the title
13.18"CPA" or "CPA firm" without a permit issued under this section only if:
13.19(1) it has the qualifications described in subdivision 3, paragraph (b);
13.20(2) as a condition to the renewal of the firm's permit issued by the other state, that
13.21state requires a peer review which contains the requirements equivalent to subdivision 8,
13.22paragraphs (a) and (e); and
13.23(3) it performs the services through an individual who has been granted practice
13.24privileges under section 326A.14.
13.25(c) A firm possessing a valid permit from another state that does not have an office
13.26in this state and which is not subject to the requirements of paragraph (a), clause (4), or
13.27(b), may perform other professional services while using the title "CPA" or "CPA firm" in
13.28this state without a permit issued under this section only if the firm:
13.29(1) has the qualifications described in subdivision 3, paragraph (b);
13.30(2) performs the services through an individual who has been granted practice
13.31privileges under section 326A.14; and
13.32(3) can lawfully perform the services in the state where the individuals with practice
13.33privileges have their principal place of business.
Sec. 15. Minnesota Statutes 2006, section 326A.05, subdivision 2, is amended to read:
Subd. 2. Timing. (a)
Permits must be initially issued and renewed for periods of
not more than one year but in any event must expire on December 31 following issuance
or renewal. Applications for permits shall be made in the form, and in the case of
applications for renewal between the dates, as the board specifies in rule. The board shall
grant or deny an application no later than 90 days after the application is filed in proper
form. If the applicant seeks the opportunity to show that issuance or renewal of a permit
was mistakenly denied or if the board is not able to determine whether it should be granted
or denied, the board may issue to the applicant a provisional permit, which expires 90
days after its issuance, or when the board determines whether or not to issue or renew the
permit for which application was made, whichever occurs first.
14.11(b) Applications for renewal of a permit that are complete and timely filed with the
14.12board and are not granted or denied by the board before January 1 are renewed on a
14.13provisional basis as of January 1 and for 90 days thereafter, or until the board grants
14.14or denies the permit, whichever occurs first, provided the licensee meets the renewal
14.15requirements in this chapter and rules adopted by the board.
Sec. 16. Minnesota Statutes 2006, section 326A.05, subdivision 3, is amended to read:
Subd. 3. Qualifications.
(a) An applicant for initial issuance or renewal of a permit
to practice under this section shall comply with the requirements in this subdivision.
(b) Notwithstanding chapter 319B or any other provision of law, a simple majority
of the ownership of the firm, in terms of financial interests and voting rights of all partners,
officers, shareholders, members, or managers, must belong to holders of certificates who
are licensed in some state, and the partners, officers, shareholders, members, or managers,
whose principal place of business is in this state, and who perform professional services in
this state, must hold valid certificates issued under section
or the corresponding
provision of prior law. Although firms may include nonlicensee owners, the firm and
its ownership must comply with rules adopted by the board. The firm shall register all
nonlicensee owners with the state board as set forth by rule. An individual who has been
14.28granted practice privileges under section 326A.14 and who performs services for which
14.29a firm permit is required under section 326A.14, subdivision 1, paragraph (d), is not
14.30required to obtain a certificate from the board under section 326A.04.
(c) A CPA firm may include nonlicensee owners provided that:
(1) the firm designates a licensee of this state, or in the case of a firm that must
14.33have a permit according to section 326A.14, subdivision 1, paragraph (d), a licensee of
14.34another state who meets the requirements in section 326A.14, subdivision 1, paragraph
15.1(a) or (b),
who is responsible for the proper registration of the firm and identifies that
individual to the board;
(2) all nonlicensee owners are persons of good moral character and are
individual participants in the CPA firm or affiliated entities; and
(3) the firm complies with other requirements imposed by the board in rule.
(d) An individual licensee and any individual granted practice privileges under
who is responsible for supervising attest or compilation services and
signs or authorizes someone to sign the accountant's report on the financial statements
on behalf of the firm, shall meet the competency requirements set out in the professional
standards for such services.
(e) An individual licensee and any individual granted practice privileges under
who signs or authorizes someone to sign the accountants' report on
the financial statements on behalf of the firm shall meet the competency requirement of
Sec. 17. Minnesota Statutes 2006, section 326A.05, subdivision 4, is amended to read:
Subd. 4. Initial issuance or renewal.
An applicant for initial issuance or renewal of
a permit to practice under this section shall register each office of the firm within this state
with the board and
show that all attest and compilation services rendered in this state
are under the charge of a person holding a valid certificate
, or the corresponding provision
15.20 of prior law issued by this state or another state
Sec. 18. Minnesota Statutes 2006, section 326A.05, subdivision 5, is amended to read:
Subd. 5. Fees.
The board shall charge a fee for each application for initial issuance
or renewal of a permit under this section. A firm that is required to hold a permit under
15.24this section and has one or more offices located in another state shall pay an initial permit
15.25issuance fee of $100 and an annual renewal fee of $68.
Sec. 19. Minnesota Statutes 2006, section 326A.06, is amended to read:
ACCOUNTING PRACTITIONER; REGISTRATION;
15.28 CERTIFICATE LPA'S AND ACCOUNTING PRACTITIONERS.
(a) All licensed public accountants (LPAs) who are actively licensed by the state
board on December 31, 2002, shall be issued a certified public accountant certificate.
LPAs are those accountants who were eligible for licensure on July 1, 1979, under the
law in effect on that date and who were issued a license as a licensed public accountant
by the board at that time.
By July 1, 2004,
The board shall implement a voluntary registration of
accounting practitioners. The board shall prescribe by rule the limitations of practice,
educational preparation, examination, registration, fees, peer review, and continuing
education requirements for the registration. The board shall consult with the University of
Minnesota, the Minnesota State Colleges and Universities, the Minnesota Association of
Private Postsecondary Schools, the Private College Council, the Minnesota Association
of Public Accountants, and other organizations as appropriate in the implementation
of this section.
Sec. 20. Minnesota Statutes 2006, section 326A.07, is amended to read:
16.10326A.07 APPOINTMENT OF SECRETARY OF STATE AS AGENT.
Application by a person or a firm not a resident of this state for a certificate
16.12issued under section 326A.04
or a permit issued under section 326A.05
appointment of the secretary of state as the applicant's agent upon whom process may be
served in any action or proceeding against the applicant arising out of any transaction
or operation connected with or incidental to services performed by the applicant while
within this state.
Sec. 21. Minnesota Statutes 2006, section 326A.08, subdivision 2, is amended to read:
Subd. 2. Hearings conducted under chapter 14.
Except as otherwise described in
this section, all hearings shall be conducted in accordance with chapter 14.
16.20Hearings conducted under chapter 14 that relate to a disciplinary action must be closed
16.21to the public, except for individuals whose presence is necessary for conducting the
16.22proceeding or providing testimony or evidence. The hearing record and the findings,
16.23conclusions, report, and order or recommendation of the administrative law judge are
16.24private data on individuals, as defined in section 13.02, until the board issues its final order
16.25or the report or order of the administrative law judge becomes the final decision in the case.
Sec. 22. Minnesota Statutes 2006, section 326A.08, subdivision 4, is amended to read:
Subd. 4. Cease and desist orders.
(a) The board, or the complaint committee if
authorized by the board, may issue and have served upon a certificate holder, a permit
holder, a registration holder, a person with practice privileges granted under section
, a person
who has previously been subject to a disciplinary order by the board,
or an unlicensed firm or person an order requiring the person or firm to cease and desist
from the act or practice constituting a violation of the statute, rule, or order. The order
must be calculated to give reasonable notice of the rights of the person or firm to request a
hearing and must state the reasons for the entry of the order. No order may be issued until
an investigation of the facts has been conducted pursuant to section
(b) Service of the order is effective when the order is served on the person, firm, or
counsel of record personally, or by certified mail to the most recent address provided to
the board for the person, firm, or counsel of record.
(c) Unless otherwise agreed by the board, or the complaint committee if authorized
by the board, and the person or firm requesting the hearing, the hearing must be held no
later than 30 days after the request for the hearing is received by the board.
(d) The administrative law judge shall issue a report within 30 days of the close of
the contested case hearing record, notwithstanding Minnesota Rules, part 1400.8100,
subpart 3. Within 30 days after receiving the report and any exceptions to it, the board
shall issue a further order vacating, modifying, or making permanent the cease and desist
orders as the facts require.
(e) If no hearing is requested within 30 days of service of the order, the order
becomes final and remains in effect until it is modified or vacated by the board.
(f) If the person or firm to whom a cease and desist order is issued fails to appear at
the hearing after being duly notified, the person or firm is in default and the proceeding
may be determined against that person or firm upon consideration of the cease and desist
order, the allegations of which may be considered to be true.
(g) In lieu of or in addition to the order provided in paragraph (a), the board may
require the person or firm to provide to the board a true and complete list of the person's
or firm's clientele so that they can, if deemed necessary, be notified of the board's action.
Failure to do so, or to provide an incomplete or inaccurate list, is an act discreditable.
Sec. 23. Minnesota Statutes 2006, section 326A.08, subdivision 5, is amended to read:
Subd. 5. Actions against persons or firms.
(a) The board may, by order, deny,
refuse to renew, suspend, temporarily suspend, or revoke the application, or practice
privileges, registration or certificate of a person or firm; censure or reprimand the person
or firm; prohibit the person or firm from preparing tax returns or reporting on financial
statements; limit the scope of practice of any licensee; limit privileges under section
refuse to permit a person to sit for examination; or refuse to release the person's
examination grades if the board finds that the order is in the public interest and that, based
on a preponderance of the evidence presented, the person or firm:
(1) has violated a statute, rule, or order that the board has issued or is empowered
(2) has engaged in conduct or acts that are fraudulent, deceptive, or dishonest
whether or not the conduct or acts relate to performing or offering to perform professional
services, providing that the fraudulent, deceptive, or dishonest conduct or acts reflect
adversely on the person's or firm's ability or fitness to provide professional services;
(3) has engaged in conduct or acts that are negligent or otherwise in violation of
the standards established by board rule, where the conduct or acts relate to providing
professional services, including in the filing or failure to file the licensee's income tax
(4) has been convicted of, has pled guilty or nolo contendere to, or has been
sentenced as a result of the commission of a felony or crime, an element of which is
dishonesty or fraud; has been shown to have or admitted to having engaged in acts or
practices tending to show that the person or firm is incompetent; or has engaged in conduct
reflecting adversely on the person's or firm's ability or fitness to provide professional
services, whether or not a conviction was obtained or
a plea was entered or withheld and
18.15whether or not dishonesty or fraud was an element of the conduct
(5) employed fraud or deception in obtaining a certificate, permit, registration,
practice privileges, renewal, or reinstatement or in passing all or a portion of the
(6) has had the person's or firm's permit, registration, practice privileges, certificate,
right to examine, or other similar authority revoked, suspended, canceled, limited, or not
renewed for cause, or has committed unprofessional acts for which the person or firm was
otherwise disciplined or sanctioned, including, but not limited to, being ordered to or
agreeing to cease and desist from prescribed conduct, in any state or any foreign country;
(7) has had the person's or firm's right to practice before any federal, state,
other government agency, or Public Company Accounting Oversight Board
suspended, canceled, limited, or not renewed for cause, or has committed unprofessional
acts for which the person or firm was otherwise disciplined or sanctioned, including, but
not limited to, being ordered to or agreeing to cease and desist from prescribed conduct;
(8) failed to meet any requirement for the issuance or renewal of the person's or
firm's certificate, registration or permit, or for practice privileges;
(9) with respect to temporary suspension orders, has committed an act, engaged in
conduct, or committed practices that may result or may have resulted, in the opinion of the
board or the complaint committee if authorized by the board, in an immediate threat to
(10) has engaged in any conduct reflecting adversely upon the person's or firm's
fitness to perform services while a licensee, individual granted privileges under section
, or a person registered under section
326A.06, paragraph (b)
19.4(11) has, prior to a voluntary surrender of a certificate or permit to the board,
19.5engaged in conduct which at any time resulted in the discipline or sanction described
19.6in clause (6) or (7).
(b) In lieu of or in addition to any remedy provided in paragraph (a), the board,
19.8or the complaint committee if authorized by the board,
may require, as a condition of
continued possession of a certificate, a registration, or practice privileges, termination
of suspension, reinstatement of permit, registration of a person or firm or of practice
privileges under section
, a certificate, an examination, or release of examination
grades, that the person or firm:
(1) submit to a peer review of the person's or firm's ability, skills, or quality of work,
conducted in a fashion and by persons, entity, or entities as required by the board; and
(2) complete to the satisfaction of the board continuing professional education
courses specified by the board.
(c) Service of the order is effective if the order is served on the person, firm, or
counsel of record personally or by certified mail to the most recent address provided to
the board for the person, firm, or counsel of record. The order shall state the reasons
for the entry of the order.
(d) All hearings required by this subdivision must be conducted in accordance
with chapter 14 except with respect to temporary suspension orders as provided for in
(e) In addition to the remedies authorized by this subdivision, the board, or the
19.25complaint committee if authorized by the board,
may enter into an agreement with the
person or firm for corrective action and may unilaterally issue a warning to a person or
(f) The board shall not use agreements for corrective action or warnings in any
situation where the person or firm has been convicted of or pled guilty or nolo contendere
to a felony or crime and the felony or crime is the basis of the board's action against the
person or firm, where the conduct of the person or firm indicates a pattern of related
violations of paragraph (a) or the rules of the board, or where the board concludes that
the conduct of the person or firm will not be deterred other than by disciplinary action
under this subdivision or subdivision 4 or 6.
(g) Agreements for corrective action may be used by the board, or the complaint
committee if authorized by the board, where the violation committed by the person or firm
does not warrant disciplinary action pursuant to this subdivision or subdivision 4 or 6, but
where the board, or the complaint committee if authorized by the board, determines that
corrective action is required to prevent further such violations and to otherwise protect
the public. Warnings may be used by the board, or the complaint committee if authorized
by the board, where the violation of the person or firm is de minimus, does not warrant
disciplinary action under this subdivision or subdivision 4 or 6, and does not require
corrective action to protect the public.
(h) Agreements for corrective action must not be considered disciplinary action
against the person's or firm's application, permit, registration or certificate, or practice
privileges under section
. However, agreements for corrective action are public
data. Warnings must not be considered disciplinary action against the person's or firm's
application, permit, registration, or certificate or person's practice privileges and are
Sec. 24. Minnesota Statutes 2006, section 326A.08, subdivision 6, is amended to read:
Subd. 6. Temporary suspension
(a) When the board, or the
complaint committee if authorized by the board, issues a temporary suspension order, the
suspension is in effect upon service of a written order on the person, firm, or counsel of
record as provided in subdivision 4, paragraph (b)
, specifying the statute, rule, or order
violated. The order remains in effect until the board issues a final order in the matter after
a hearing or upon agreement between the board and the person or firm.
(b) The order may prohibit the person or firm from providing professional services
in whole or in part, as the facts may require, and may condition the end of such suspension
on compliance with a statute, rule, or order that the board has issued or is empowered
(c) The order must set forth the rights to hearing contained in this section and must
state the reasons for the entry of order.
(d) Within ten days after service of the order, the person or firm may request a
hearing in writing. The board shall hold a hearing before its own members within five
working days of a receipt of a request for hearing or within five working days of receipt of
a request for hearing on the sole issue of whether there is a reasonable basis to continue,
modify, or lift the temporary suspension. This hearing is not subject to chapter 14.
Evidence presented by the board or the person or firm shall be in affidavit form only. The
person, firm, or counsel of record may appear for oral argument.
(e) Within five working days after the hearing, the board shall issue its order and,
if the suspension is continued, schedule a contested case hearing within 30 days after
issuance of the order. The administrative law judge shall issue a report within 30 days
after closing of the contested case hearing record, notwithstanding the provisions of
Minnesota Rules, part 1400.8100, subpart 3. The board shall issue a final order within 30
days after receipt of that report.
Sec. 25. Minnesota Statutes 2006, section 326A.08, subdivision 7, is amended to read:
Subd. 7. Violation; penalties; costs of proceeding.
(a) The board may impose a
civil penalty not to exceed $2,000 per violation upon a person or a
firm that violates an
order, statute, or rule that the board has issued or is empowered to enforce.
(b) The board may, in addition, impose a fee to reimburse the board for all or
part of the cost of the proceedings, including reasonable investigative costs, resulting
in disciplinary or corrective action authorized by this section, the imposition of civil
penalties, or the issuance of a cease and desist order. The fee may be imposed when the
board shows that the position of the person or firm that violates a statute, rule, or order
that the board has issued or is empowered to enforce is not substantially justified, unless
special circumstances make an award unjust, notwithstanding the provisions of Minnesota
Rules, part 1400.8401. The costs include, but are not limited to, the amount paid by the
board for services from the office of administrative hearings, attorney and reasonable
investigative fees, court reporters, witnesses, reproduction of records, board members' per
diem compensation, board staff time, and expense incurred by board members and staff.
(c) All hearings required by this subdivision must be conducted in accordance with
21.21 chapter 14.
Sec. 26. Minnesota Statutes 2006, section 326A.08, subdivision 8, is amended to read:
Subd. 8. Other persons and entities subject to discipline.
Any person or entity
who prepares or reports on financial statements or schedules for a client for a fee is subject
to this section and the practice of the person or entity may be disciplined by the
as provided for in this section. The board may discipline a person or entity based on
violations of this chapter, the board's rules, or misrepresentations made by the person or
entity regarding the work the person or entity performed.
Sec. 27. Minnesota Statutes 2006, section 326A.08, subdivision 9, is amended to read:
Subd. 9. Notification of other states.
In any case where the board renders a
decision imposing discipline against a person or firm, the board shall examine its records
to determine whether the person or firm holds a certificate or a permit in any other state. If
so, the board shall notify the board of accountancy of the other state of its decision, by
mail or by other reasonable means
, within 45 days of the decision becoming final.
Sec. 28. Minnesota Statutes 2006, section 326A.10, is amended to read:
22.4326A.10 UNLAWFUL ACTS.
(a) Only a licensee and individuals who have been granted practice privileges
22.6under section 326A.14
may issue a report on financial statements of any person, firm,
organization, or governmental unit that results from providing attest services, or offer to
render or render any attest service. Only a certified public accountant, an individual who
22.9has been granted practice privileges under section 326A.14,
a CPA firm, or, to the extent
permitted by board rule, a person registered under section
326A.06, paragraph (b)
issue a report on financial statements of any person, firm, organization, or governmental
unit that results from providing compilation services or offer to render or render any
compilation service. These restrictions do not prohibit any act of a public official or
public employee in the performance of that person's duties or prohibit the performance
by any nonlicensee of other services involving the use of accounting skills, including
the preparation of tax returns, management advisory services, and the preparation of
financial statements without the issuance of reports on them. Nonlicensees may prepare
financial statements and issue nonattest transmittals or information on them which do not
purport to be in compliance with the Statements on Standards for Accounting and Review
Services (SSARS). Nonlicensees registered under section
326A.06, paragraph (b)
to the extent permitted by board rule, prepare financial statements and issue nonattest
transmittals or information on them.
(b) Licensees and individuals who have been granted practice privileges under
performing attest or compilation services must provide those services in
accordance with professional standards. To the extent permitted by board rule, registered
accounting practitioners performing compilation services must provide those services in
accordance with standards specified in board rule.
(c) A person who does not hold a valid certificate issued under section
22.29or a practice privilege granted under section 326A.14
shall not use or assume the title
"certified public accountant," the abbreviation "CPA," or any other title, designation,
words, letters, abbreviation, sign, card, or device tending to indicate that the person is a
certified public accountant.
(d) A firm shall not provide attest services or assume or use the title "certified public
accountants," the abbreviation "CPAs," or any other title, designation, words, letters,
abbreviation, sign, card, or device tending to indicate that the firm is a CPA firm unless (1)
holds a valid permit issued under has complied with
, and (2)
ownership of the firm is in accordance with this chapter and rules adopted by the board.
(e) A person or firm that does not hold a valid certificate or permit issued under
326A.05 or has not otherwise complied with section 326A.04 or
23.5326A.05 as required in this chapter
shall not assume or use the title "certified accountant,"
"chartered accountant," "enrolled accountant," "licensed accountant," "registered
accountant," "accredited accountant," "accounting practitioner," "public accountant,"
"licensed public accountant," or any other title or designation likely to be confused
with the title "certified public accountant," or use any of the abbreviations "CA," "LA,"
"RA," "AA," "PA," "AP," "LPA," or similar abbreviation likely to be confused with the
abbreviation "CPA." The title "enrolled agent" or "EA" may only be used by individuals
so designated by the Internal Revenue Service.
(f) Persons registered under section
326A.06, paragraph (b)
, may use the title
"registered accounting practitioner" or the abbreviation "RAP." A person who does not
hold a valid registration under section
326A.06, paragraph (b)
, shall not assume or use
such title or abbreviation.
(g) Except to the extent permitted in paragraph (a), nonlicensees may not use
language in any statement relating to the financial affairs of a person or entity that is
conventionally used by licensees in reports on financial statements. In this regard, the
board shall issue by rule safe harbor language that nonlicensees may use in connection
with such financial information. A person or firm that does not hold a valid certificate or
permit, or a registration issued under section
, or has not otherwise complied with section 326A.04 or 326A.05 as required in this
shall not assume or use any title or designation that includes the word "accountant"
or "accounting" in connection with any other language, including the language of a report,
that implies that the person or firm holds such a certificate, permit, or registration or has
special competence as an accountant. A person or firm that does not hold a valid certificate
or permit issued under section
326A.05 or has not otherwise complied with
23.29section 326A.04 or 326A.05 as required in this chapter
shall not assume or use any title
or designation that includes the word "auditor" in connection with any other language,
including the language of a report, that implies that the person or firm holds such a
certificate or permit or has special competence as an auditor. However, this paragraph
does not prohibit any officer, partner, member, manager, or employee of any firm or
organization from affixing that person's own signature to any statement in reference to the
financial affairs of such firm or organization with any wording designating the position,
title, or office that the person holds, nor prohibit any act of a public official or employee in
the performance of the person's duties as such.
(h) No person holding a certificate or registration or firm holding a permit under
this chapter shall use a professional or firm name or designation that is misleading about
the legal form of the firm, or about the persons who are partners, officers, members,
managers, or shareholders of the firm, or about any other matter. However, names of one
or more former partners, members, managers, or shareholders may be included in the
name of a firm or its successor.
(i) Paragraphs (a) to (h) do not apply to a person or firm holding a certification,
designation, degree, or license granted in a foreign country entitling the holder to engage
in the practice of public accountancy or its equivalent in that country, if:
(1) the activities of the person or firm in this state are limited to the provision of
professional services to persons or firms who are residents of, governments of, or business
entities of the country in which the person holds the entitlement;
(2) the person or firm performs no attest or compilation services and issues no reports
with respect to the financial statements of any other persons, firms, or governmental
units in this state; and
(3) the person or firm does not use in this state any title or designation other than
the one under which the person practices in the foreign country, followed by a translation
of the title or designation into English, if it is in a different language, and by the name
of the country.
(j) No holder of a certificate issued under section
may perform attest
services through any business form that does not hold a valid permit issued under section
(k) No individual licensee may issue a report in standard form upon a compilation
of financial information through any form of business that does not hold a valid permit
issued under section
, unless the report discloses the name of the business through
which the individual is issuing the report, and the individual:
(1) signs the compilation report identifying the individual as a certified public
(2) meets the competency requirement provided in applicable standards; and
(3) undergoes no less frequently than once every three years, a peer review
conducted in a manner specified by the board in rule, and the review includes verification
that the individual has met the competency requirements set out in professional standards
for such services.
(l) No person registered under section
326A.06, paragraph (b)
, may issue a report
in standard form upon a compilation of financial information unless the board by rule
permits the report and the person:
(1) signs the compilation report identifying the individual as a registered accounting
(2) meets the competency requirements in board rule; and
(3) undergoes no less frequently than once every three years a peer review conducted
in a manner specified by the board in rule, and the review includes verification that the
individual has met the competency requirements in board rule.
(m) Nothing in this section prohibits a practicing attorney or firm of attorneys from
preparing or presenting records or documents customarily prepared by an attorney or firm
of attorneys in connection with the attorney's professional work in the practice of law.
Notwithstanding other provisions of this section, persons preparing unaudited
25.14 financial statements under corresponding provisions of prior law shall be permitted to
25.15 perform compilation services until six months after the board adopts rules under section
25.16 326A.06 . The board shall adopt rules that place limitations on receipt by a licensee or a
25.17person who holds a registration under section 326A.06, paragraph (b), of:
25.18(1) contingent fees for professional services performed; and
25.19(2) commissions or referral fees for recommending or referring to a client any
25.20product or service.
25.21(o) Anything in this section to the contrary notwithstanding, it shall not be a violation
25.22of this section for a firm not holding a valid permit under section 326A.05 and not having
25.23an office in this state to provide its professional services in this state so long as it complies
25.24with the applicable requirements of section 326A.05, subdivision 1.
Sec. 29. Minnesota Statutes 2006, section 326A.12, is amended to read:
25.26326A.12 CONFIDENTIAL COMMUNICATIONS.
(a) Except by permission of the client for whom a licensee performs services
or the heirs, successors, or personal representatives of the client, a licensee shall not
voluntarily disclose information communicated to the licensee by the client relating to
and in connection with services rendered to the client by the licensee. Nothing in this
section may be construed to prohibit:
(1) the disclosure of information required to be disclosed by the standards of the
public accounting profession in reporting on the examination of financial statements; or
(2) disclosures in court proceedings, in investigations or proceedings under section
, in ethical investigations conducted by private professional organizations, in the
course of peer reviews, to other persons active in the organization performing services for
that client on a need-to-know basis, or to persons in the entity who need this information
for the sole purpose of assuring quality control.
(b) This section also applies to persons registered under section
, and to persons granted a practice privilege under section 326A.14
Sec. 30. Minnesota Statutes 2006, section 326A.13, is amended to read:
26.7326A.13 WORKING PAPERS; CLIENTS' RECORDS.
(a) Subject to the provisions of section
, all statements, records, schedules,
working papers, and memoranda made by a licensee or a partner, shareholder, officer,
director, member, manager, or employee of a licensee, incident to, or in the course of,
rendering services to a client while a licensee, except the reports submitted by the licensee
to the client and except for records that are part of the client's records, remain the property
of the licensee in the absence of an express agreement between the licensee and the
client to the contrary. No statement, record, schedule, working paper, or memorandum
may be sold, transferred, or bequeathed, without the consent of the client or the client's
personal representative or assignee, to anyone other than one or more surviving partners,
stockholders, members or new partners, new stockholders, new members of the licensee,
or any combined or merged firm or successor in interest to the licensee. Nothing in this
section may be construed as prohibiting any temporary transfer of workpapers or other
material necessary in the course of carrying out peer reviews or as otherwise interfering
with the disclosure of information pursuant to section
(b) A licensee shall furnish to a client or former client, upon request and reasonable
(1) a copy of the licensee's working papers, to the extent that the working papers
include records that would ordinarily constitute part of the client's records and are not
otherwise available to the client; and
(2) any accounting or other records belonging to, or obtained from or on behalf of,
the client that the licensee removed from the client's premises or received for the client's
account. The licensee may make and retain copies of such documents of the client when
they form the basis for work done by the licensee.
(c) Nothing in this section requires a licensee to keep any work paper beyond the
period prescribed in any other applicable statute.
(d) This section also applies to persons registered under section
26.34(b), and to persons granted a practice privilege under section 326A.14
Sec. 31. Minnesota Statutes 2006, section 326A.14, is amended to read:
27.2326A.14 SUBSTANTIAL EQUIVALENCY.
Subdivision 1. Requirements.
(a) An individual whose principal place of business
is not in this state and who
license in good standing
a certified public accountant from any state which, upon verification, is in substantial
equivalence with the certified public accountant licensure requirements of
27.7section 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
certificate holders and
licensees of this state without the need to obtain a
27.10 or permit license
However, such individuals shall notify the board of their intent to
27.11 enter the state under this provision as provided for in board rule and pay the required
27.12 fee. Notwithstanding any contrary provision of this chapter, an individual who offers
27.13or renders professional services, whether in person, by mail, telephone, or electronic
27.14means, under this paragraph: (1) shall be granted practice privileges in this state; (2) is
27.15subject to the requirements in paragraph (c); and (3) is not required to provide any notice
27.16or other submission.
(b) An individual whose principal place of business is not in this state and who
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
this chapter section
27.21326A.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
27.23 holders and
licensees of this state without the need to obtain a
certificate or permit license
if the individual obtains verification, as specified in board rule, that the individual's
qualifications are substantially equivalent to the licensure requirements of
27.26section 326A.03, subdivisions 3, 4, and 6
Such individuals shall notify the board of their
27.27 intent to enter the state under this provision as provided for in board rule and pay the
27.28 required fee. For purposes of this paragraph, any individual who passed the Uniform CPA
27.29Examination and holds a valid license issued by any other state prior to January 1, 2009, is
27.30exempt from the education requirement in section 326A.03, subdivision 6, paragraph (a),
27.31provided the individual meets the education requirement in section 326A.03, subdivision
27.323. Notwithstanding any contrary provision of this chapter, an individual who offers or
27.33renders professional services, whether in person, by mail, telephone, or electronic means,
27.34under this paragraph: (1) shall, after the verification specified by adopted rules, be granted
27.35practice privileges in this state; (2) is subject to the requirements in paragraph (c); and (3)
27.36is not required to provide any notice or other submission.
Any An individual
licensee of another state exercising the privilege afforded
under this section
consents and the firm which employs that licensee are deemed to have
, as a condition of the grant of this privilege:
(1) to the personal and subject matter jurisdiction and disciplinary authority of
(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
28.10(4) to cease offering or rendering professional services in this state individually and
28.11on behalf of a firm in the event the license issued by the state of the individual's principal
28.12place of business is no longer valid or in good standing.
28.13(d) An individual who has been granted practice privileges under this section who
28.14performs attest services as defined in section 326A.01, subdivision 2, clause (1), (3), or
28.15(4), for any entity with its headquarters in this state, may only do so through a firm which
28.16has 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.
Sec. 32. REPEALER.
28.23Minnesota Statutes 2006, section 326A.05, subdivision 9, is repealed.
Sec. 33. EFFECTIVE DATE.
28.25Sections 1 to 32 are effective the day following final enactment.