2001 Minnesota Statutes

     326A.04 Issuance and renewal of certificates and 
  maintenance of competency. 

    Subdivision 1.    Eligibility.  The board shall grant or 
 renew certificates to persons who make application and 
 demonstrate: 

    (1) that their qualifications, including where applicable 
 the qualifications prescribed by section 326A.03, are in 
 accordance with this section; or 

    (2) that they are eligible under the substantial 
 equivalency standard in section 326A.14, subdivision 1, 
 paragraph (b), which requires licensure for those certified 
 public 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 326A.05. 

    Subd. 2.    Timing.  (a) Certificates must be initially 
 issued and renewed for periods of not more than one year but in 
 any event must expire on the December 31 following issuance or 
 renewal.  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. 

    Subd. 3.    Residents of other states.  (a) With regard 
 to applicants who do not qualify for reciprocity under the 
 substantial equivalency standard in section 326A.14, subdivision 
 1, paragraph (b), 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 certificate 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; and 

    (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. 

    (b) 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. 

    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 for 
 initial issuance or renewal of certificates under this section 
 shall in their applications list all states in which they have 
 applied for or hold 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 
 substantially equivalent foreign country designation, provided 
 that: 

    (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 substantially 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 
 substantially equivalent to the requirement 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, 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 rule; and 

    (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 the 
 board. 

    Subd. 8.    Other jurisdictions in which foreign applicant 
 is licensed.  An applicant under subdivision 7 shall in the 
 application list 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.  The certificates of 
 persons who fail to renew their certificates for more than two 
 years after expiration 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 such 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 such 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 so revoked by the 
 board may be reinstated, if at all, under section 326A.09.  This 
 subdivision does not apply to certified public accountants who 
 have notified the board that they will not use the CPA 
 designation in any manner and will not provide professional 
 services. 

    HIST: 2001 c 109 art 1 s 6 

*   NOTE:  This section, as added by Laws 2001, chapter 109, 
*article 1, section 6, is effective January 1, 2003.  Laws 2001, 
*chapter 109, article 1, section 19.