Sixty-ninth Legislative Assembly of North Dakota
In Regular Session Commencing Tuesday, January 7, 2025
HOUSE BILL NO. 1156
(Representatives Schauer, Bahl, Christy, Frelich, J. Johnson, O'Brien, S. Olson, Louser)
(Senators Klein, Roers, Sickler)
AN ACT to create and enact a new section to chapter 43-02.2 of the North Dakota Century Code,
relating to ownership of accounting firms by qualified plans; and to amend and reenact
subsection 3 of section 10-31-04 and subsection 3 of section 43-02.2-06 of the North Dakota
Century Code, relating to minority ownership of an accounting firm.
BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
SECTION 1. AMENDMENT. Subsection 3 of section 10-31-04 of the North Dakota Century Code is
amended and reenacted as follows:
3.If expressly authorized under this subsection, a professional organization may have a minority
ownership by one or more minority owners. A professional organization created under this
chapter for the purpose of providing professional services as set forth in chapterchapters 43-
02.2 and 43-03 is expressly authorized to have minority owners.
SECTION 2. AMENDMENT. Subsection 3 of section 43-02.2-06 of the North Dakota Century Code
is amended and reenacted as follows:
3.AnExcept as provided in section 3 of this Act, an applicant for initial issuance or renewal of a
permit to practice under this section must show that notwithstanding any other provision of
law, a simple majority of the ownership of the firm, in terms of financial interests and voting
rights, belongs to licensees of a state or other recognized jurisdiction and that all certified
public accountants or licensed public accountants associated with the firm whose principal
place of business is in this state and who perform professional services in this state hold a
valid certificate or license issued by this state. The minority of the ownership of a firm may
belong to an individual or a qualified plan as described and defined in sections 401(a) and
4975(e)(7) of the Internal Revenue Code [26 U.S.C. 401(a) and 4975(e)(7)], including an
employee stock ownership plan. The firm and its owners must comply with all board rules
regarding ownership.
SECTION 3. A new section to chapter 43-02.2 of the North Dakota Century Code is created and
enacted as follows:
Permit to practice - Firm wholly owned by qualified plan.
1.A firm may be wholly owned by a qualified plan as described and defined in sections 401(a)
and 4975(e)(7) of the Internal Revenue Code [26 U.S.C. 401(a) and 4975(e)(7)], including an
employee stock ownership plan, if an applicant for initial issuance or renewal of a permit to
practice shows:
a.Fifty-one percent or more of the beneficial ownership of the plan belongs to certified
public accountants or licensed public accountants of the state or other recognized
jurisdiction;
b.All certified public accountants or licensed public accountants associated with the firm
whose principal place of business is in this state and who perform professional services
in this state hold a valid certificate or license issued by this state; and
c.A simple majority of the board of directors of the firm are certified public accountants or
licensed public accountants of the state or other recognized jurisdiction. H. B. NO. 1156 - PAGE 2
____________________________ ____________________________
Speaker of the House President of the Senate
____________________________ ____________________________
Chief Clerk of the House Secretary of the Senate
This certifies that the within bill originated in the House of Representatives of the Sixty-ninth Legislative
Assembly of North Dakota and is known on the records of that body as House Bill No. 1156.
House Vote: Yeas 91 Nays 0 Absent 3
Senate Vote:Yeas 47 Nays 0 Absent 0
____________________________
Chief Clerk of the House
Received by the Governor at ________M. on _____________________________________, 2025.
Approved at ________M. on __________________________________________________, 2025.
____________________________
Governor
Filed in this office this ___________day of _______________________________________, 2025,
at ________ o’clock ________M.
____________________________
Secretary of State