Bill Text: MN SF86 | 2013-2014 | 88th Legislature | Engrossed
Bill Title: Accountancy board provisions modifications; fee increases and licensing provisions modification
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2013-02-21 - Comm report: To pass as amended and re-refer to Finance [SF86 Detail]
Download: Minnesota-2013-SF86-Engrossed.html
1.2relating to occupations and professions; making changes to the Board of
1.3Accountancy; proposing fee increases; making changes to licensing provisions;
1.4repealing obsolete provisions;amending Minnesota Statutes 2012, sections
1.5326A.04, subdivisions 2, 3, 5, 7; 326A.10; repealing Minnesota Statutes 2012,
1.6section 326A.03, subdivisions 2, 5, 8; Minnesota Rules, parts 1105.0600;
1.71105.2550; 1105.2700.
1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.9 Section 1. Minnesota Statutes 2012, section 326A.04, subdivision 2, is amended to read:
1.10 Subd. 2. Timing. (a) Certificates must be initially issued and renewedfor periods of
1.11not more than three years annually but in any event must expire on December 31 in the year
1.12prescribed by the board by rule. Applications for certificates must be made in the form, and
1.13in the case of applications for renewal between the dates, specified by the board in rule.
1.14The board shall grant or deny an application no later than 90 days after the application is
1.15filed in proper form. If the applicant seeks the opportunity to show that issuance or renewal
1.16of a certificate was mistakenly denied, or if the board is unable to determine whether it
1.17should be granted or denied, the board may issue to the applicant a provisional certificate
1.18that expires 90 days after its issuance, or when the board determines whether or not to
1.19issue or renew the certificate for which application was made, whichever occurs first.
1.20(b) Certificate holders who do not provide professional services and do not use the
1.21certified public accountant designation in any manner are not required to renew their
1.22certificates provided they have notified the board as provided in board rule and comply
1.23with the requirements for nonrenewal as specified in board rule.
1.24(c) Applications for renewal of a certificate that are complete and timely filed with
1.25the board and are not granted or denied by the board before January 1 are renewed on a
2.1provisional basis as of January 1 and for 90 days thereafter, or until the board grants or
2.2denies the renewal of the certificate, whichever occurs first, provided the licensee meets
2.3the requirements in this chapter and rules adopted by the board.
2.4EFFECTIVE DATE.This section is effective for licenses issued or renewed after
2.5January 1, 2014.
2.6 Sec. 2. Minnesota Statutes 2012, section 326A.04, subdivision 3, is amended to read:
2.7 Subd. 3. Residents of other states. (a) With regard to an applicant who must
2.8obtain a certificate in this state because the applicant does not qualify under the substantial
2.9equivalency standard in section326A.14, subdivision 1 , the board shall issue a certificate
2.10to a holder of a certificate, license, or permit issued by another state upon a showing that:
2.11(1) the applicant passed the examination required for issuance of a certificate in
2.12this state;
2.13(2) the applicant had four years of experience of the type described in section
2.14326A.03, subdivision 6
, paragraph (b), if application is made on or after July 1, 2006,
2.15or section
326A.03, subdivision 8, if application is made before July 1, 2006; or the
2.16applicant meets equivalent requirements prescribed by the board by rule, after passing
2.17the examination upon which the applicant's certificate was based and within the ten years
2.18immediately preceding the application;
2.19(3) if the applicant's certificate, license, or permit was issued more than four years
2.20prior to the application for issuance of an initial certificate under this subdivision, that the
2.21applicant has fulfilled the requirements of continuing professional education that would
2.22have been applicable under subdivision 4; and
2.23(4) the applicant has met the qualifications prescribed by the board by rule.
2.24(b) A certificate holder licensed by another state who establishes a principal place
2.25of business in this state shall request the issuance of a certificate from the board prior to
2.26establishing the principal place of business. The board shall issue a certificate to the person
2.27if the person's individual certified public accountant qualifications, upon verification, are
2.28substantially equivalent to the certified public accountant licensure requirements of this
2.29chapter or the person meets equivalent requirements as the board prescribes by rule.
2.30Residents of this state who provide professional services in this state at an office location
2.31in this state shall be considered to have their principal place of business in this state.
2.32 Sec. 3. Minnesota Statutes 2012, section 326A.04, subdivision 5, is amended to read:
2.33 Subd. 5. Fee. (a) The board shall charge a fee for each application for initial
2.34issuance or renewal of a certificate under this section.
3.1(b) The board shall annually establish a fee schedule not to exceed the following
3.2amounts:
3.3(1) initial issuance of certificate, $150;
3.4(2) renewal of certificate with an active status, $100 per year;
3.5(3) initial CPA firm permits, except for sole practitioners, $100;
3.6(4) renewal of CPA firm permits, except for sole practitioners and those firms
3.7specified in clause (17), $35 per year;
3.8(5) initial issuance and renewal of CPA firm permits for sole practitioners, except for
3.9those firms specified in clause (17), $35 per year;
3.10(6) annual late processing delinquency fee for permit, certificate, or registration
3.11renewal applications not received prior to expiration date, $50;
3.12(7) copies of records, per page, 25 cents;
3.13(8) registration of noncertificate holders, nonlicensees, and nonregistrants in
3.14connection with renewal of firm permits, $45 per year;
3.15(9) applications for reinstatement, $20;
3.16(10) initial registration of a registered accounting practitioner, $50;
3.17(11) initial registered accounting practitioner firm permits, $100;
3.18(12) renewal of registered accounting practitioner firm permits, except for sole
3.19practitioners, $100 per year;
3.20(13) renewal of registered accounting practitioner firm permits for sole practitioners,
3.21$35 per year;
3.22(14) CPA examination application, $40;
3.23(15) CPA examination, fee determined by third-party examination administrator;
3.24(16) renewal of certificates with an inactive status, $25 per year; and
3.25(17) renewal of CPA firm permits for firms that have one or more offices located in
3.26another state, $68 per year.
3.27 Sec. 4. Minnesota Statutes 2012, section 326A.04, subdivision 7, is amended to read:
3.28 Subd. 7. Certificates issued by foreign countries. The board shall issue a
3.29certificate to a holder of a generally equivalent foreign country designation, provided that:
3.30(1) the foreign authority that granted the designation makes similar provision to
3.31allow a person who holds a valid certificate issued by this state to obtain the foreign
3.32authority's comparable designation;
3.33(2) the foreign designation:
3.34(i) was duly issued by a foreign authority that regulates the practice of public
3.35accountancy and the foreign designation has not expired or been revoked or suspended;
4.1(ii) entitles the holder to issue reports upon financial statements; and
4.2(iii) was issued upon the basis of educational, examination, and experience
4.3requirements established by the foreign authority or by law; and
4.4(3) the applicant:
4.5(i) received the designation, based on educational and examination standards
4.6generally equivalent to those in effect in this state, at the time the foreign designation
4.7was granted;
4.8(ii) has, within the ten years immediately preceding the application, completed an
4.9experience requirement that is generally equivalent to the requirement in section326A.03,
4.10subdivision 6 , paragraph (b), if application is made on or after July 1, 2006, or section
4.11326A.03, subdivision 8, if application is made before July 1, 2006, in the jurisdiction that
4.12granted the foreign designation; completed four years of professional experience in this
4.13state; or met equivalent requirements prescribed by the board by rule; and
4.14(iii) passed a uniform qualifying examination in national standards and an
4.15examination on the laws, regulations, and code of ethical conduct in effect in this state
4.16as the board prescribes by rule.
4.17 Sec. 5. Minnesota Statutes 2012, section 326A.10, is amended to read:
4.18326A.10 UNLAWFUL ACTS.
4.19(a) Only a licensee and individuals who have been granted practice privileges
4.20under section326A.14 may issue a report on financial statements of any person, firm,
4.21organization, or governmental unit that results from providing attest services, or offer to
4.22render or render any attest service. Only a certified public accountant, an individual who
4.23has been granted practice privileges under section326A.14 , a CPA firm, or, to the extent
4.24permitted by board rule, a person registered under section326A.06, paragraph (b) , may
4.25issue a report on financial statements of any person, firm, organization, or governmental
4.26unit that results from providing compilation services or offer to render or render any
4.27compilation service. These restrictions do not prohibit any act of a public official or
4.28public employee in the performance of that person's duties or prohibit the performance
4.29by any nonlicensee of other services involving the use of accounting skills, including
4.30the preparation of tax returns, management advisory services, and the preparation of
4.31financial statements without the issuance of reports on them. Nonlicensees may prepare
4.32financial statements and issue nonattest transmittals or information on them which do not
4.33purport to be in compliance with the Statements on Standards for Accounting and Review
4.34Services (SSARS). Nonlicensees registered under section326A.06, paragraph (b) , may,
5.1to the extent permitted by board rule, prepare financial statements and issue nonattest
5.2transmittals or information on them.
5.3(b) Licensees and individuals who have been granted practice privileges under
5.4section326A.14 performing attest or compilation services must provide those services in
5.5accordance with professional standards. To the extent permitted by board rule, registered
5.6accounting practitioners performing compilation services must provide those services in
5.7accordance with standards specified in board rule.
5.8(c) A person who does not hold a valid certificate issued under section326A.04
5.9or a practice privilege granted under section
326A.14 shall not use or assume the title
5.10"certified public accountant," the abbreviation "CPA," or any other title, designation,
5.11words, letters, abbreviation, sign, card, or device tending to indicate that the person is a
5.12certified public accountant.
5.13(d) A firm shall not provide attest services or assume or use the title "certified public
5.14accountants," the abbreviation "CPA's," or any other title, designation, words, letters,
5.15abbreviation, sign, card, or device tending to indicate that the firm is a CPA firm unless
5.16(1) the firm has complied with section326A.05 , and (2) ownership of the firm is in
5.17accordance with this chapter and rules adopted by the board.
5.18(e) A person or firm that does not hold a valid certificate or permit issued under
5.19section326A.04 or
326A.05 or has not otherwise complied with section
326A.04 or
5.20326A.05
as required in this chapter shall not assume or use the title "certified accountant,"
5.21"chartered accountant," "enrolled accountant," "licensed accountant," "registered
5.22accountant," "accredited accountant," "accounting practitioner," "public accountant,"
5.23"licensed public accountant," or any other title or designation likely to be confused
5.24with the title "certified public accountant," or use any of the abbreviations "CA," "LA,"
5.25"RA," "AA," "PA," "AP," "LPA," or similar abbreviation likely to be confused with the
5.26abbreviation "CPA." The title "enrolled agent" or "EA" may only be used by individuals
5.27so designated by the Internal Revenue Service.
5.28(f) Persons registered under section326A.06, paragraph (b) , may use the title
5.29"registered accounting practitioner" or the abbreviation "RAP." A person who does not
5.30hold a valid registration under section326A.06, paragraph (b) , shall not assume or use
5.31such title or abbreviation.
5.32(g) Except to the extent permitted in paragraph (a), nonlicensees may not use
5.33language in any statement relating to the financial affairs of a person or entity that is
5.34conventionally used by licensees in reports on financial statements. In this regard, the
5.35board shall issue by rule safe harbor language that nonlicensees may use in connection
5.36with such financial information. A person or firm that does not hold a valid certificate or
6.1permit, or a registration issued under section326A.04 ,
326A.05 , or
326A.06, paragraph
6.2(b) , or has not otherwise complied with section
326A.04 or
326A.05 as required in this
6.3chapter shall not assume or use any title or designation that includes the word "accountant"
6.4or "accounting" in connection with any other language, including the language of a report,
6.5that implies that the person or firm holds such a certificate, permit, or registration or has
6.6special competence as an accountant. A person or firm that does not hold a valid certificate
6.7or permit issued under section326A.04 or
326A.05 or has not otherwise complied with
6.8section326A.04 or
326A.05 as required in this chapter shall not assume or use any title
6.9or designation that includes the word "auditor" in connection with any other language,
6.10including the language of a report, that implies that the person or firm holds such a
6.11certificate or permit or has special competence as an auditor. However, this paragraph
6.12does not prohibit any officer, partner, member, manager, or employee of any firm or
6.13organization from affixing that person's own signature to any statement in reference to the
6.14financial affairs of such firm or organization with any wording designating the position,
6.15title, or office that the person holds, nor prohibit any act of a public official or employee in
6.16the performance of the person's duties as such.
6.17(h)(1) No person holding a certificate or registration or firm holding a permit under
6.18this chapter shall use a professional or firm name or designation that is misleading about
6.19the legal form of the firm, or about the persons who are partners, officers, members,
6.20managers, or shareholders of the firm, or about any other matter. However, names of one
6.21or more former partners, members, managers, or shareholders may be included in the
6.22name of a firm or its successor.
6.23(2) A common brand name or network name part, including common initials,
6.24used by a CPA firm in its name, is not misleading if the firm is a network firm as
6.25defined in the American Institute of Certified Public Accountants (AICPA) Code of
6.26Professional Conduct in effect July 1, 2011, and when offering or rendering services that
6.27require independence under AICPA standards, the firm complies with the AICPA code's
6.28applicable standards on independence.
6.29(i) Paragraphs (a) to (h) do not apply to a person or firm holding a certification,
6.30designation, degree, or license granted in a foreign country entitling the holder to engage
6.31in the practice of public accountancy or its equivalent in that country, if:
6.32(1) the activities of the person or firm in this state are limited to the provision of
6.33professional services to persons or firms who are residents of, governments of, or business
6.34entities of the country in which the person holds the entitlement;
7.1(2) the person or firm performs no attest or compilation services and issues no reports
7.2with respect to the financial statements of any other persons, firms, or governmental
7.3units in this state; and
7.4(3) the person or firm does not use in this state any title or designation other than
7.5the one under which the person practices in the foreign country, followed by a translation
7.6of the title or designation into English, if it is in a different language, and by the name
7.7of the country.
7.8(j) No holder of a certificate issued under section326A.04 may perform attest services
7.9through any business form that does not hold a valid permit issued under section326A.05 .
7.10(k) No individual licensee may issue a report in standard form upon a compilation
7.11of financial information through any form of business that does not hold a valid permit
7.12issued under section326A.05 , unless the report discloses the name of the business through
7.13which the individual is issuing the report, and the individual:
7.14(1) signs the compilation report identifying the individual as a certified public
7.15accountant;
7.16(2) meets the competency requirement provided in applicable standards; and
7.17(3) undergoes no less frequently than once every three years, a peer review
7.18conducted in a manner specified by the board in rule, and the review includes verification
7.19that the individual has met the competency requirements set out in professional standards
7.20for such services.
7.21(l) No person registered under section326A.06, paragraph (b) , may issue a report
7.22in standard form upon a compilation of financial information unless the board by rule
7.23permits the report and the person:
7.24(1) signs the compilation report identifying the individual as a registered accounting
7.25practitioner;
7.26(2) meets the competency requirements in board rule; and
7.27(3) undergoes no less frequently than once every three years a peer review conducted
7.28in a manner specified by the board in rule, and the review includes verification that the
7.29individual has met the competency requirements in board rule.
7.30(m) Nothing in this section prohibits a practicing attorney or firm of attorneys from
7.31preparing or presenting records or documents customarily prepared by an attorney or firm
7.32of attorneys in connection with the attorney's professional work in the practice of law.
7.33(n) The board shall adopt rules that place limitations on receipt by a licensee or a
7.34person who holds a registration under section326A.06 , paragraph (b), of:
7.35(1) contingent fees for professional services performed; and
8.1(2) commissions or referral fees for recommending or referring to a client any
8.2product or service.
8.3(o) Anything in this section to the contrary notwithstanding, it shall not be a violation
8.4of this section for a firm not holding a valid permit under section326A.05 and not having
8.5an office in this state to provide its professional services in this state so long as it complies
8.6with the applicable requirements of section326A.05, subdivision 1 .
8.7 Sec. 6. REPEALER.
8.8(a) Minnesota Statutes 2012, section 326A.03, subdivisions 2, 5, and 8, are repealed.
8.9(b) Minnesota Rules, parts 1105.0600; 1105.2550; and 1105.2700, are repealed.
1.3Accountancy; proposing fee increases; making changes to licensing provisions;
1.4repealing obsolete provisions;amending Minnesota Statutes 2012, sections
1.5326A.04, subdivisions 2, 3, 5, 7; 326A.10; repealing Minnesota Statutes 2012,
1.6section 326A.03, subdivisions 2, 5, 8; Minnesota Rules, parts 1105.0600;
1.71105.2550; 1105.2700.
1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.9 Section 1. Minnesota Statutes 2012, section 326A.04, subdivision 2, is amended to read:
1.10 Subd. 2. Timing. (a) Certificates must be initially issued and renewed
1.11
1.12prescribed by the board by rule. Applications for certificates must be made in the form, and
1.13in the case of applications for renewal between the dates, specified by the board in rule.
1.14The board shall grant or deny an application no later than 90 days after the application is
1.15filed in proper form. If the applicant seeks the opportunity to show that issuance or renewal
1.16of a certificate was mistakenly denied, or if the board is unable to determine whether it
1.17should be granted or denied, the board may issue to the applicant a provisional certificate
1.18that expires 90 days after its issuance, or when the board determines whether or not to
1.19issue or renew the certificate for which application was made, whichever occurs first.
1.20(b) Certificate holders who do not provide professional services and do not use the
1.21certified public accountant designation in any manner are not required to renew their
1.22certificates provided they have notified the board as provided in board rule and comply
1.23with the requirements for nonrenewal as specified in board rule.
1.24(c) Applications for renewal of a certificate that are complete and timely filed with
1.25the board and are not granted or denied by the board before January 1 are renewed on a
2.1provisional basis as of January 1 and for 90 days thereafter, or until the board grants or
2.2denies the renewal of the certificate, whichever occurs first, provided the licensee meets
2.3the requirements in this chapter and rules adopted by the board.
2.4EFFECTIVE DATE.This section is effective for licenses issued or renewed after
2.5January 1, 2014.
2.6 Sec. 2. Minnesota Statutes 2012, section 326A.04, subdivision 3, is amended to read:
2.7 Subd. 3. Residents of other states. (a) With regard to an applicant who must
2.8obtain a certificate in this state because the applicant does not qualify under the substantial
2.9equivalency standard in section
2.10to a holder of a certificate, license, or permit issued by another state upon a showing that:
2.11(1) the applicant passed the examination required for issuance of a certificate in
2.12this state;
2.13(2) the applicant had four years of experience of the type described in section
2.15
2.16applicant meets equivalent requirements prescribed by the board by rule, after passing
2.17the examination upon which the applicant's certificate was based and within the ten years
2.18immediately preceding the application;
2.19(3) if the applicant's certificate, license, or permit was issued more than four years
2.20prior to the application for issuance of an initial certificate under this subdivision, that the
2.21applicant has fulfilled the requirements of continuing professional education that would
2.22have been applicable under subdivision 4; and
2.23(4) the applicant has met the qualifications prescribed by the board by rule.
2.24(b) A certificate holder licensed by another state who establishes a principal place
2.25of business in this state shall request the issuance of a certificate from the board prior to
2.26establishing the principal place of business. The board shall issue a certificate to the person
2.27if the person's individual certified public accountant qualifications, upon verification, are
2.28substantially equivalent to the certified public accountant licensure requirements of this
2.29chapter or the person meets equivalent requirements as the board prescribes by rule.
2.30Residents of this state who provide professional services in this state at an office location
2.31in this state shall be considered to have their principal place of business in this state.
2.32 Sec. 3. Minnesota Statutes 2012, section 326A.04, subdivision 5, is amended to read:
2.33 Subd. 5. Fee. (a) The board shall charge a fee for each application for initial
2.34issuance or renewal of a certificate under this section.
3.1(b) The board shall annually establish a fee schedule not to exceed the following
3.2amounts:
3.3(1) initial issuance of certificate, $150;
3.4(2) renewal of certificate with an active status, $100 per year;
3.5(3) initial CPA firm permits, except for sole practitioners, $100;
3.6(4) renewal of CPA firm permits, except for sole practitioners and those firms
3.7specified in clause (17), $35 per year;
3.8(5) initial issuance and renewal of CPA firm permits for sole practitioners, except for
3.9those firms specified in clause (17), $35 per year;
3.10(6) annual late processing delinquency fee for permit, certificate, or registration
3.11renewal applications not received prior to expiration date, $50;
3.12(7) copies of records, per page, 25 cents;
3.13(8) registration of noncertificate holders, nonlicensees, and nonregistrants in
3.14connection with renewal of firm permits, $45 per year;
3.15(9) applications for reinstatement, $20;
3.16(10) initial registration of a registered accounting practitioner, $50;
3.17(11) initial registered accounting practitioner firm permits, $100;
3.18(12) renewal of registered accounting practitioner firm permits, except for sole
3.19practitioners, $100 per year;
3.20(13) renewal of registered accounting practitioner firm permits for sole practitioners,
3.21$35 per year;
3.22(14) CPA examination application, $40;
3.23(15) CPA examination, fee determined by third-party examination administrator;
3.24(16) renewal of certificates with an inactive status, $25 per year; and
3.25(17) renewal of CPA firm permits for firms that have one or more offices located in
3.26another state, $68 per year.
3.27 Sec. 4. Minnesota Statutes 2012, section 326A.04, subdivision 7, is amended to read:
3.28 Subd. 7. Certificates issued by foreign countries. The board shall issue a
3.29certificate to a holder of a generally equivalent foreign country designation, provided that:
3.30(1) the foreign authority that granted the designation makes similar provision to
3.31allow a person who holds a valid certificate issued by this state to obtain the foreign
3.32authority's comparable designation;
3.33(2) the foreign designation:
3.34(i) was duly issued by a foreign authority that regulates the practice of public
3.35accountancy and the foreign designation has not expired or been revoked or suspended;
4.1(ii) entitles the holder to issue reports upon financial statements; and
4.2(iii) was issued upon the basis of educational, examination, and experience
4.3requirements established by the foreign authority or by law; and
4.4(3) the applicant:
4.5(i) received the designation, based on educational and examination standards
4.6generally equivalent to those in effect in this state, at the time the foreign designation
4.7was granted;
4.8(ii) has, within the ten years immediately preceding the application, completed an
4.9experience requirement that is generally equivalent to the requirement in section
4.10subdivision 6
4.11
4.12granted the foreign designation; completed four years of professional experience in this
4.13state; or met equivalent requirements prescribed by the board by rule; and
4.14(iii) passed a uniform qualifying examination in national standards and an
4.15examination on the laws, regulations, and code of ethical conduct in effect in this state
4.16as the board prescribes by rule.
4.17 Sec. 5. Minnesota Statutes 2012, section 326A.10, is amended to read:
4.18326A.10 UNLAWFUL ACTS.
4.19(a) Only a licensee and individuals who have been granted practice privileges
4.20under section
4.21organization, or governmental unit that results from providing attest services, or offer to
4.22render or render any attest service. Only a certified public accountant, an individual who
4.23has been granted practice privileges under section
4.24permitted by board rule, a person registered under section
4.25issue a report on financial statements of any person, firm, organization, or governmental
4.26unit that results from providing compilation services or offer to render or render any
4.27compilation service. These restrictions do not prohibit any act of a public official or
4.28public employee in the performance of that person's duties or prohibit the performance
4.29by any nonlicensee of other services involving the use of accounting skills, including
4.30the preparation of tax returns, management advisory services, and the preparation of
4.31financial statements without the issuance of reports on them. Nonlicensees may prepare
4.32financial statements and issue nonattest transmittals or information on them which do not
4.33purport to be in compliance with the Statements on Standards for Accounting and Review
4.34Services (SSARS). Nonlicensees registered under section
5.1to the extent permitted by board rule, prepare financial statements and issue nonattest
5.2transmittals or information on them.
5.3(b) Licensees and individuals who have been granted practice privileges under
5.4section
5.5accordance with professional standards. To the extent permitted by board rule, registered
5.6accounting practitioners performing compilation services must provide those services in
5.7accordance with standards specified in board rule.
5.8(c) A person who does not hold a valid certificate issued under section
5.10"certified public accountant," the abbreviation "CPA," or any other title, designation,
5.11words, letters, abbreviation, sign, card, or device tending to indicate that the person is a
5.12certified public accountant.
5.13(d) A firm shall not provide attest services or assume or use the title "certified public
5.14accountants," the abbreviation "CPA's," or any other title, designation, words, letters,
5.15abbreviation, sign, card, or device tending to indicate that the firm is a CPA firm unless
5.16(1) the firm has complied with section
5.17accordance with this chapter and rules adopted by the board.
5.18(e) A person or firm that does not hold a valid certificate or permit issued under
5.19section
5.21"chartered accountant," "enrolled accountant," "licensed accountant," "registered
5.22accountant," "accredited accountant," "accounting practitioner," "public accountant,"
5.23"licensed public accountant," or any other title or designation likely to be confused
5.24with the title "certified public accountant," or use any of the abbreviations "CA," "LA,"
5.25"RA," "AA," "PA," "AP," "LPA," or similar abbreviation likely to be confused with the
5.26abbreviation "CPA." The title "enrolled agent" or "EA" may only be used by individuals
5.27so designated by the Internal Revenue Service.
5.28(f) Persons registered under section
5.29"registered accounting practitioner" or the abbreviation "RAP." A person who does not
5.30hold a valid registration under section
5.31such title or abbreviation.
5.32(g) Except to the extent permitted in paragraph (a), nonlicensees may not use
5.33language in any statement relating to the financial affairs of a person or entity that is
5.34conventionally used by licensees in reports on financial statements. In this regard, the
5.35board shall issue by rule safe harbor language that nonlicensees may use in connection
5.36with such financial information. A person or firm that does not hold a valid certificate or
6.1permit, or a registration issued under section
6.2(b)
6.3chapter shall not assume or use any title or designation that includes the word "accountant"
6.4or "accounting" in connection with any other language, including the language of a report,
6.5that implies that the person or firm holds such a certificate, permit, or registration or has
6.6special competence as an accountant. A person or firm that does not hold a valid certificate
6.7or permit issued under section
6.8section
6.9or designation that includes the word "auditor" in connection with any other language,
6.10including the language of a report, that implies that the person or firm holds such a
6.11certificate or permit or has special competence as an auditor. However, this paragraph
6.12does not prohibit any officer, partner, member, manager, or employee of any firm or
6.13organization from affixing that person's own signature to any statement in reference to the
6.14financial affairs of such firm or organization with any wording designating the position,
6.15title, or office that the person holds, nor prohibit any act of a public official or employee in
6.16the performance of the person's duties as such.
6.17(h)(1) No person holding a certificate or registration or firm holding a permit under
6.18this chapter shall use a professional or firm name or designation that is misleading about
6.19the legal form of the firm, or about the persons who are partners, officers, members,
6.20managers, or shareholders of the firm, or about any other matter. However, names of one
6.21or more former partners, members, managers, or shareholders may be included in the
6.22name of a firm or its successor.
6.23(2) A common brand name or network name part, including common initials,
6.24used by a CPA firm in its name, is not misleading if the firm is a network firm as
6.25defined in the American Institute of Certified Public Accountants (AICPA) Code of
6.26Professional Conduct in effect July 1, 2011, and when offering or rendering services that
6.27require independence under AICPA standards, the firm complies with the AICPA code's
6.28applicable standards on independence.
6.29(i) Paragraphs (a) to (h) do not apply to a person or firm holding a certification,
6.30designation, degree, or license granted in a foreign country entitling the holder to engage
6.31in the practice of public accountancy or its equivalent in that country, if:
6.32(1) the activities of the person or firm in this state are limited to the provision of
6.33professional services to persons or firms who are residents of, governments of, or business
6.34entities of the country in which the person holds the entitlement;
7.1(2) the person or firm performs no attest or compilation services and issues no reports
7.2with respect to the financial statements of any other persons, firms, or governmental
7.3units in this state; and
7.4(3) the person or firm does not use in this state any title or designation other than
7.5the one under which the person practices in the foreign country, followed by a translation
7.6of the title or designation into English, if it is in a different language, and by the name
7.7of the country.
7.8(j) No holder of a certificate issued under section
7.9through any business form that does not hold a valid permit issued under section
7.10(k) No individual licensee may issue a report in standard form upon a compilation
7.11of financial information through any form of business that does not hold a valid permit
7.12issued under section
7.13which the individual is issuing the report, and the individual:
7.14(1) signs the compilation report identifying the individual as a certified public
7.15accountant;
7.16(2) meets the competency requirement provided in applicable standards; and
7.17(3) undergoes no less frequently than once every three years, a peer review
7.18conducted in a manner specified by the board in rule, and the review includes verification
7.19that the individual has met the competency requirements set out in professional standards
7.20for such services.
7.21(l) No person registered under section
7.22in standard form upon a compilation of financial information unless the board by rule
7.23permits the report and the person:
7.24(1) signs the compilation report identifying the individual as a registered accounting
7.25practitioner;
7.26(2) meets the competency requirements in board rule; and
7.27(3) undergoes no less frequently than once every three years a peer review conducted
7.28in a manner specified by the board in rule, and the review includes verification that the
7.29individual has met the competency requirements in board rule.
7.30(m) Nothing in this section prohibits a practicing attorney or firm of attorneys from
7.31preparing or presenting records or documents customarily prepared by an attorney or firm
7.32of attorneys in connection with the attorney's professional work in the practice of law.
7.33(n) The board shall adopt rules that place limitations on receipt by a licensee or a
7.34person who holds a registration under section
7.35(1) contingent fees for professional services performed; and
8.1(2) commissions or referral fees for recommending or referring to a client any
8.2product or service.
8.3(o) Anything in this section to the contrary notwithstanding, it shall not be a violation
8.4of this section for a firm not holding a valid permit under section
8.5an office in this state to provide its professional services in this state so long as it complies
8.6with the applicable requirements of section
8.7 Sec. 6. REPEALER.
8.8(a) Minnesota Statutes 2012, section 326A.03, subdivisions 2, 5, and 8, are repealed.
8.9(b) Minnesota Rules, parts 1105.0600; 1105.2550; and 1105.2700, are repealed.
