Minnesota 2025-2026 Regular Session

Minnesota House Bill HF1458 Compare Versions

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Version 2 (New)

Old	New		Differences
1	1		1.1 A bill for an act
2	2		1.2 relating to state government; modifying standards for required education and
3		-	1.3 experience for certified public accountants; establishing ~~mobility~~ for licensed
	3	+	1.3 experience for certified public accountants; establishing reciprocity for licensed
4	4		1.4 public accountants; amending Minnesota Statutes 2024, sections 326A.03,
5	5		1.5 subdivision 6, by adding subdivisions; 326A.14; repealing Minnesota Rules, part
6	6		1.6 1105.7900, item D.
7	7		1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
8	8		1.8 Section 1. Minnesota Statutes 2024, section 326A.03, subdivision 6, is amended to read:
9	9		1.9 Subd. 6.Certificate; required education and experience until July 1, 2030.(a) On
10	10		1.10or after July 1, 2006, and before July 1, 2030, a person who has passed the examination
11	11		1.11required in this section must be granted a certificate as a certified public accountant provided:
12	12		1.12(1) the person certifies to the board that the person has completed at least 150 semester or
13	13		1.13225 quarter hours at a college or university that is fully accredited by a recognized accrediting
14	14		1.14agency listed with the United States Department of Education, or an equivalent accrediting
15	15		1.15association, and has completed at least one year of experience of the type specified in
16	16		1.16paragraph (b); (2) the board verifies the certifications; and (3) the person complies with
17	17		1.17requirements for initial issuance of the certificate as a certified public accountant as
18	18		1.18prescribed by the board by rule.
19	19		1.19 (b) An applicant for initial issuance of a certificate under this subdivision shall show
20	20		1.20that the applicant has had one year of experience. Acceptable experience includes providing
21	21		1.21any type of service or advice involving the use of accounting, attest, compilation,
22	22		1.22management advisory, financial advisory, tax, or consulting skills, as verified by a licensee
23	23		1.23and meeting requirements prescribed by the board by rule. Acceptable experience may be
24	24		1.24gained through employment in government, industry, academia, or public practice.
25	25		1Section 1.
26		-	REVISOR BD ~~H1458-1~~~~HF1458 FIRST ENGROSSMENT~~
	26	+	REVISOR BD/LJ 25-0237701/28/25
27	27		State of Minnesota
28	28		This Document can be made available
29	29		in alternative formats upon request
30	30		HOUSE OF REPRESENTATIVES
31	31		H. F. No. 1458
32		-	NINETY-FOURTH SESSION
33		-	Authored by Van Binsbergen, Huot, Virnig, Elkins, Davids and others02/24/2025
34		-	The bill was read for the first time and referred to the Committee on State Government Finance and Policy
35		-	Adoption of Report: Amended and re-referred to the Committee on Ways and Means03/24/2025 2.1Experience as an auditor in the Office of the Legislative Auditor or State Auditor, as verified
	32	+	NINETY-FOURTH SESSION 2.1Experience as an auditor in the Office of the Legislative Auditor or State Auditor, as verified
36	33		2.2by a licensee, shall be acceptable experience.
37	34		2.3 (c) This section expires July 1, 2030.
38	35		2.4 Sec. 2. Minnesota Statutes 2024, section 326A.03, is amended by adding a subdivision to
39	36		2.5read:
40	37		2.6 Subd. 6a.Certificate; required education and experience after June 30, 2030.(a)
41		-	2.7On and after July 1, 2030, or during the transitional period as provided in subdivision 6b,
42		-	2.8the board must grant a certificate as a certified public accountant to a person who has not
43		-	2.9previously been certified and who has passed the examination required in this section if:
44		-	2.10 (1) the person certifies to the board that the person has:
45		-	2.11 (i) completed a master's degree at a college or university that is fully accredited by a
46		-	2.12recognized accrediting agency listed with the United States Department of Education and
47		-	2.13has completed at least one year of acceptable experience described in paragraph (b); or
48		-	2.14 (ii) earned a bachelor's or graduate degree from a college or university that is fully
49		-	2.15accredited by a recognized accrediting agency listed with the United States Department of
50		-	2.16Education and has completed at least two years of acceptable experience described in
51		-	2.17paragraph (b);
52		-	2.18 (2) the board verifies the certification under clause (1); and
53		-	2.19 (3) the person complies with requirements as prescribed by the board for an initial
54		-	2.20certificate.
55		-	2.21 (b) Acceptable experience includes providing any type of service or advice that involves
56		-	2.22accounting, attest, compilation, management advisory, financial advisory, tax, or consulting
57		-	2.23skills, as verified by a licensee and meeting requirements prescribed by the board by rule.
58		-	2.24Acceptable experience may be gained through employment in government, industry,
59		-	2.25academia, or public practice. Experience as an auditor in the Office of the Legislative Auditor
60		-	2.26or the Office of the State Auditor, as verified by a licensee, is acceptable experience.
61		-	2.27 Sec. 3. Minnesota Statutes 2024, section 326A.03, is amended by adding a subdivision to
62		-	2.28read:
63		-	2.29 Subd. 6b.Transitional period.(a) Until July 1, 2030, a person must be granted an initial
64		-	2.30certificate as a certified public accountant if the person meets either:
65		-	2.31 (1) all requirements under subdivision 6; or
	38	+	2.7On and after July 1, 2030, the board must grant a certificate as a certified public accountant
	39	+	2.8to a person who has passed the examination required in this section if:
	40	+	2.9 (1) the person certifies to the board that the person has completed a master's degree at
	41	+	2.10a college or university that is fully accredited by a recognized accrediting agency listed with
	42	+	2.11the United States Department of Education and has completed at least one year of acceptable
	43	+	2.12experience described in paragraph (b); or
	44	+	2.13 (2) the person certifies to the board that the person has earned a bachelor's degree from
	45	+	2.14a college or university that is fully accredited by a recognized accrediting agency listed with
	46	+	2.15the United States Department of Education and has completed at least two years of acceptable
	47	+	2.16experience described in paragraph (b).
	48	+	2.17 (b) Acceptable experience includes providing any type of service or advice that involves
	49	+	2.18accounting, attest, compilation, management advisory, financial advisory, tax, or consulting
	50	+	2.19skills, as verified by a licensee and meeting requirements prescribed by the board by rule.
	51	+	2.20Acceptable experience may be gained through employment in government, industry,
	52	+	2.21academia, or public practice. Experience as an auditor in the Office of the Legislative Auditor
	53	+	2.22or the Office of the State Auditor, as verified by a licensee, is acceptable experience.
	54	+	2.23 Sec. 3. Minnesota Statutes 2024, section 326A.03, is amended by adding a subdivision to
	55	+	2.24read:
	56	+	2.25 Subd. 6b.Transitional period.(a) Until July 1, 2030, a person must be granted a
	57	+	2.26certificate as a certified public accountant if the person meets either:
	58	+	2.27 (1) all requirements under subdivision 6; or
	59	+	2.28 (2) all requirements under subdivision 6a.
	60	+	2.29 (b) This section expires July 1, 2030.
66	61		2Sec. 3.
67		-	REVISOR BD H1458-1HF1458 FIRST ENGROSSMENT 3.1 (2) all requirements under subdivision 6a.
68		-	3.2 (b) This section expires July 1, 2030.
69		-	3.3 EFFECTIVE DATE.This section is effective January 1, 2026.
70		-	3.4 Sec. 4. Minnesota Statutes 2024, section 326A.14, is amended to read:
71		-	3.5 326A.14 SUBSTANTIAL EQUIVALENCY MOBILITY.
72		-	3.6 Subdivision 1.Requirements.(a) An individual whose principal place of business is
73		-	3.7not in this state and who holds a valid license in good standing as a certified public accountant
74		-	3.8from any state which, upon verification, is in substantial equivalence with the certified
75		-	3.9public accountant licensure requirements of section 326A.03, subdivisions 3, 4, and 6, shall
76		-	3.10be presumed to have qualifications substantially equivalent to this state's requirements and
77		-	3.11shall have all the privileges of licensees of this state without the need to obtain a license.,
78		-	3.12if the person:
79		-	3.13 (1) holds a valid certificate, license, or permit to practice as a certified public accountant
80		-	3.14that was issued in another state and is in good standing to practice as a certified public
81		-	3.15accountant in that state;
82		-	3.16 (2) has a bachelor's degree or higher from an accredited postsecondary school with an
83		-	3.17accounting concentration or equivalent as determined by the board by rule; and
84		-	3.18 (3) has passed the Uniform CPA Examination.
85		-	3.19 (b) Notwithstanding any contrary provision of this chapter, an individual who offers or
86		-	3.20renders professional services, whether in person, by mail, telephone, or electronic means,
87		-	3.21under this paragraph (a): (1) shall be granted practice privileges in this state; (2) is subject
88		-	3.22to the requirements in paragraph (c); and (3) is not required to provide any notice or other
89		-	3.23submission.
90		-	3.24 (b) An individual whose principal place of business is not in this state and who holds a
91		-	3.25valid license in good standing as a certified public accountant from any state whose certified
92		-	3.26public accountant licensure qualifications, upon verification, are not substantially equivalent
93		-	3.27with the licensure requirements of section 326A.03, subdivisions 3, 4, and 6, shall be
94		-	3.28presumed to have qualifications substantially equivalent to this state's requirements and
95		-	3.29shall have all the privileges of licensees of this state without the need to obtain a license if
96		-	3.30the individual obtains verification, as specified in board rule, that the individual's
97		-	3.31qualifications are substantially equivalent to the licensure requirements of section 326A.03,
98		-	3.32subdivisions 3, 4, and 6. For purposes of this paragraph, any individual who passed the
	62	+	REVISOR BD/LJ 25-0237701/28/25 3.1 Sec. 4. Minnesota Statutes 2024, section 326A.14, is amended to read:
	63	+	3.2 326A.14 SUBSTANTIAL EQUIVALENCY; RECIPROCITY.
	64	+	3.3 Subdivision 1.Requirements.(a) An individual whose principal place of business is
	65	+	3.4not in this state and who holds a valid license in good standing as a certified public accountant
	66	+	3.5from any state which, upon verification, is in substantial equivalence with the certified
	67	+	3.6public accountant licensure requirements of section 326A.03, subdivisions 3, 4, and 6, shall
	68	+	3.7be presumed to have qualifications substantially equivalent to this state's requirements and
	69	+	3.8shall have all the privileges of licensees of this state without the need to obtain a license.,
	70	+	3.9if the person:
	71	+	3.10 (1) holds a valid certificate, license, or permit to practice as a certified public accountant
	72	+	3.11that was issued in another state and is in good standing to practice as a certified public
	73	+	3.12accountant in that state;
	74	+	3.13 (2) has a bachelor's degree from an accredited postsecondary school with an accounting
	75	+	3.14concentration or equivalent as determined by the board by rule; and
	76	+	3.15 (3) has passed the Uniform CPA Examination.
	77	+	3.16 (b) Notwithstanding any contrary provision of this chapter, an individual who offers or
	78	+	3.17renders professional services, whether in person, by mail, telephone, or electronic means,
	79	+	3.18under this paragraph: (1) shall be granted practice privileges in this state; (2) is subject to
	80	+	3.19the requirements in paragraph (c); and (3) is not required to provide any notice or other
	81	+	3.20submission.
	82	+	3.21 (b) An individual whose principal place of business is not in this state and who holds a
	83	+	3.22valid license in good standing as a certified public accountant from any state whose certified
	84	+	3.23public accountant licensure qualifications, upon verification, are not substantially equivalent
	85	+	3.24with the licensure requirements of section 326A.03, subdivisions 3, 4, and 6, shall be
	86	+	3.25presumed to have qualifications substantially equivalent to this state's requirements and
	87	+	3.26shall have all the privileges of licensees of this state without the need to obtain a license if
	88	+	3.27the individual obtains verification, as specified in board rule, that the individual's
	89	+	3.28qualifications are substantially equivalent to the licensure requirements of section 326A.03,
	90	+	3.29subdivisions 3, 4, and 6. For purposes of this paragraph, any individual who passed the
	91	+	3.30Uniform CPA Examination and holds a valid license issued by any other state prior to
	92	+	3.31January 1, 2009, is exempt from the education requirement in section 326A.03, subdivision
	93	+	3.326, paragraph (a), provided the individual meets the education requirement in section 326A.03,
	94	+	3.33subdivision 3. Notwithstanding any contrary provision of this chapter, an individual who
	95	+	3.34offers or renders professional services, whether in person, by mail, telephone, or electronic
99	96		3Sec. 4.
100		-	REVISOR BD H1458-1HF1458 FIRST ENGROSSMENT 4.1Uniform CPA Examination and holds a valid license issued by any other state prior to
101		-	4.2January 1, 2009, is exempt from the education requirement in section 326A.03, subdivision
102		-	4.36, paragraph (a), provided the individual meets the education requirement in section 326A.03,
103		-	4.4subdivision 3. Notwithstanding any contrary provision of this chapter, an individual who
104		-	4.5offers or renders professional services, whether in person, by mail, telephone, or electronic
105		-	4.6means, under this paragraph: (1) shall, after the verification specified by adopted rules, be
106		-	4.7granted practice privileges in this state; (2) is subject to the requirements in paragraph (c);
107		-	4.8and (3) is not required to provide any notice or other submission.
108		-	4.9 (c) An individual licensee of another state exercising the privilege afforded under this
109		-	4.10section and the firm which employs that licensee are deemed to have consented, as a condition
110		-	4.11of the grant of this privilege:
111		-	4.12 (1) to the personal and subject matter jurisdiction and disciplinary authority of the board;
112		-	4.13 (2) to comply with this chapter and the board's rules;
113		-	4.14 (3) to the appointment of the state board that issued the license as the licensee's agent
114		-	4.15upon whom process may be served in any action or proceeding by this board against the
115		-	4.16licensee; and
116		-	4.17 (4) to cease offering or rendering professional services in this state individually and on
117		-	4.18behalf of a firm in the event the license issued by the state of the individual's principal place
118		-	4.19of business is no longer valid or in good standing.
119		-	4.20 (d) An individual who has been granted practice privileges under this section who
120		-	4.21performs attest services as defined in section 326A.01, subdivision 2, clause (1), (4), or (5),
121		-	4.22for any entity with its headquarters in this state, may only do so through a firm which has
122		-	4.23obtained a permit under section 326A.05.
123		-	4.24 Subd. 2.Use of title in another state.A licensee of this state offering or rendering
124		-	4.25services or using the CPA title in another state is subject to the same disciplinary action in
125		-	4.26this state for which the licensee would be subject to discipline for an act committed in the
126		-	4.27other state. The board shall investigate any complaint made by the board of accountancy
127		-	4.28of another state.
128		-	4.29 EFFECTIVE DATE.This section is effective the day following final enactment.
129		-	4.30 Sec. 5. REPEALER; SUBSTANTIAL EQUIVALENCE.
130		-	4.31 Minnesota Rules, part 1105.7900, item D, is repealed.
131		-	4.32 EFFECTIVE DATE.This section is effective the day following final enactment.
	97	+	REVISOR BD/LJ 25-0237701/28/25 4.1means, under this paragraph: (1) shall, after the verification specified by adopted rules, be
	98	+	4.2granted practice privileges in this state; (2) is subject to the requirements in paragraph (c);
	99	+	4.3and (3) is not required to provide any notice or other submission.
	100	+	4.4 (c) An individual licensee of another state exercising the privilege afforded under this
	101	+	4.5section and the firm which employs that licensee are deemed to have consented, as a condition
	102	+	4.6of the grant of this privilege:
	103	+	4.7 (1) to the personal and subject matter jurisdiction and disciplinary authority of the board;
	104	+	4.8 (2) to comply with this chapter and the board's rules;
	105	+	4.9 (3) to the appointment of the state board that issued the license as the licensee's agent
	106	+	4.10upon whom process may be served in any action or proceeding by this board against the
	107	+	4.11licensee; and
	108	+	4.12 (4) to cease offering or rendering professional services in this state individually and on
	109	+	4.13behalf of a firm in the event the license issued by the state of the individual's principal place
	110	+	4.14of business is no longer valid or in good standing.
	111	+	4.15 (d) An individual who has been granted practice privileges under this section who
	112	+	4.16performs attest services as defined in section 326A.01, subdivision 2, clause (1), (4), or (5),
	113	+	4.17for any entity with its headquarters in this state, may only do so through a firm which has
	114	+	4.18obtained a permit under section 326A.05.
	115	+	4.19 Subd. 2.Use of title in another state.A licensee of this state offering or rendering
	116	+	4.20services or using the CPA title in another state is subject to the same disciplinary action in
	117	+	4.21this state for which the licensee would be subject to discipline for an act committed in the
	118	+	4.22other state. The board shall investigate any complaint made by the board of accountancy
	119	+	4.23of another state.
	120	+	4.24 EFFECTIVE DATE.This section is effective the day following final enactment.
	121	+	4.25 Sec. 5. REPEALER; SUBSTANTIAL EQUIVALENCE.
	122	+	4.26 Minnesota Rules, part 1105.7900, item D, is repealed.
	123	+	4.27 EFFECTIVE DATE.This section is effective the day following final enactment.
132	124		4Sec. 5.
133		-	REVISOR BD ~~H1458-1~~~~HF1458 FIRST ENGROSSMENT~~ 1105.7900SUBSTANTIAL EQUIVALENCY.
	125	+	REVISOR BD/LJ 25-0237701/28/25 1105.7900SUBSTANTIAL EQUIVALENCY.
134	126		D.Individuals required by Minnesota Statutes, section 326A.14, subdivision 1,
135	127		paragraph (b), to obtain a verification that their individual qualifications are substantially
136	128		equivalent to the licensure requirements of Minnesota Statutes, section 326A.03, subdivisions
137	129		3, 4, and 6, shall obtain the verification from the NASBA National Qualification Appraisal
138	130		Service prior to rendering professional services in this state. Documentation supporting this
139	131		verification must be maintained by the individual for a minimum period of six years and
140	132		must be submitted to the board upon request.
141	133		1R
142	134		APPENDIX
143		-	Repealed Minnesota Rules: ~~H1458-1~~
	135	+	Repealed Minnesota Rules: 25-02377