Certified public accountant and firm eligibility requirements modified.

A bill for an act

relating to state government; modifying eligibility requirements for certain certified

public accountants and firms; amending Minnesota Statutes 2024, section 326A.05,

subdivisions 1, 7; Minnesota Statutes 2025 Supplement, section 326A.14,

subdivision 1, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2024, section 326A.05, subdivision 1, is amended to read:

Subdivision 1.

General.

The board shall grant or renew permits to practice as a CPA

firm to entities that make application and demonstrate their qualifications in accordance

with this section.

(a) The following must hold a permit issued under this section:

(1) any firm with an office in this state performing attest services as defined in section

326A.01, subdivision 2
;

(2) to the extent required by section
326A.10
, paragraph (k), any firm with an office in

this state performing compilation services as defined in section
326A.01, subdivision 6
;

(3) any firm with an office in this state that uses the title "CPA" or "CPA firm"; or

(4) any firm that does not have an office in this state
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and does not qualify for interstate

mobility under section 326A.14
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but performs attest services as described in section
326A.01,

subdivision 2
, clause (1), (4), or (5), for a client having its headquarters in this state.

(b) A firm possessing a valid permit from another state
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which
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that
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does not have an

office in this state may perform services described in section
326A.01, subdivision 2
, clause

(2) or (5), or subdivision 6, for a client having its headquarters in this state and may use the

title "CPA" or "CPA firm" without a permit issued under this section only if
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:
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the firm meets

the qualifications for interstate firm mobility under section 326A.14, subdivision 3.
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(1) it has the qualifications described in subdivision 3, paragraph (b);

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(2) as a condition to the renewal of the firm's permit issued by the other state, that state

requires a peer review which contains the requirements equivalent to subdivision 8,

paragraphs (a) and (e); and

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(3) it performs the services through an individual who has been granted practice privileges

under section
326A.14
.

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(c) A firm possessing a valid permit from another state that does not have an office in

this state and which is not subject to the requirements of paragraph (a), clause (4), or (b),

may perform other professional services while using the title "CPA" or "CPA firm" in this

state without a permit issued under this section only if the firm:

(1) has the qualifications described in subdivision 3, paragraph (b);

(2) performs the services through an individual who has been granted practice privileges

under section
326A.14
; and

(3) can lawfully perform the services in the state where the individuals with practice

privileges have their principal place of business.

Sec. 2.

Minnesota Statutes 2024, section 326A.05, subdivision 7, is amended to read:

Subd. 7.

Corrective actions, revocation.

Firms that fall out of compliance with the

provisions of this section due to changes in firm ownership or personnel, after receiving or

renewing a permit, shall take corrective action to bring the firm back into compliance as

quickly as possible. Failure to bring the firm back into compliance within a reasonable

period as defined by the board rule shall result in the suspension or revocation of the firm

permit
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or practice privilege
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.

Sec. 3.

Minnesota Statutes 2025 Supplement, section 326A.14, subdivision 1, is amended

to read:

Subdivision 1.

Requirements.

(a) An individual whose principal place of business is

not in this state
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shall
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must
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be presumed to have qualifications substantially equivalent to

this state's requirements and
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shall have
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has
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all the privileges of licensees of this state without

the need to obtain a license, if the person:

(1) holds a valid certificate, license, or permit to practice as a certified public accountant

that was issued in another state and is in good standing to practice as a certified public

accountant in that state;

(2) has a bachelor's degree or higher from an accredited postsecondary school with an

accounting concentration or equivalent as determined by the board by rule; and

(3) has passed the Uniform CPA Examination.

(b) Notwithstanding any contrary provision of this chapter, an individual who offers or

renders professional services, whether in person, by mail, telephone, or electronic means,

under paragraph (a)
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or (e)
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: (1)
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shall
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must
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be granted practice privileges in this state; (2) is

subject to the requirements in paragraph (c); and (3) is not required to provide any notice

or other submission.

(c) An individual licensee of another state exercising the privilege afforded under this

section and the firm
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which
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that
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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
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entity
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client
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with its headquarters in this state, may only do so through a firm
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which
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that
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has obtained a permit under section
326A.05
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or has practice privileges under subdivision

3
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.

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(e) An individual has all of the privileges of a licensee of this state without the need to

obtain a license if:

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(1) the individual's principal place of business is not in this state;

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(2) the individual currently holds a valid certificate, license, or permit to practice as a

certified public accountant in another state that the board recognized as substantially

equivalent as of December 31, 2024; and

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(3) the individual held the valid certificate, license, or permit as of December 31, 2024.

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EFFECTIVE DATE.

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This section is effective retroactively from May 24, 2025.

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Sec. 4.

Minnesota Statutes 2025 Supplement, section 326A.14, is amended by adding a

subdivision to read:

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Subd. 3.

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Firm mobility.

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A firm that possesses a valid permit from another state that

does not have an office in this state may perform the services described in section 326A.01,

subdivision 2, for a client that has its headquarters in this state without a permit issued under

this chapter only if:

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(1) the firm has the qualifications described in section 326A.05, subdivision 3, paragraph

(b);

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(2) as a condition to the renewal of the firm's permit issued by the other state, the other

state requires a peer review that contains requirements equivalent to section 326A.05,

subdivision 8, paragraphs (a) and (e); and

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(3) the firm performs the services through an individual who is licensed under this chapter

or has been granted practice privileges under subdivision 1.

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