WeVote
Log In

Bill

Bill

SF 5205

Eligibility requirements modification for certain certified public accountants and firms

2025-2026 Regular Session Introduced by Jordan Rasmusson

The bill broadens cross-state practice by granting practice privileges to out-of-state CPAs/firms under comparable standards, while strengthening corrective action and peer-review

Referred to State and Local Government
#government-state #labor #employment #andlaborandindustrydepartment
0
WeVote Research Nonpartisan
Bill Summary · SF 5205

Summary of SF 5205 (2025-2026) — Eligibility requirements modification for certain certified public accountants and firms

Purpose and intent

  • The bill modifies eligibility requirements and mobility rules for CPAs and CPA firms, aiming to streamline cross-state practice and permit certain individuals and firms to offer attest and related services in Minnesota through practice privileges or interstate mobility arrangements.
  • It adjusts how firms and individuals from other states can operate in Minnesota, especially those without a Minnesota office, and clarifies corrective action and renewal conditions for firms.

Key provisions

Section 1 — Permits for CPA firms (Minnesota Statutes 2024, § 326A.05, subd. 1, amended)

  • Requires a permit for:
    • Any firm with an office in Minnesota performing attest services (as defined in 326A.01, subd. 2).
    • Any firm with an office in Minnesota performing compilation services (when required by § 326A.10, subd. k).
    • Any firm that uses the title “CPA” or “CPA firm” and has an office in Minnesota.
    • Any firm without a Minnesota office that performs attest services for a Minnesota-headquartered client (new language clarifies this scenario).
  • Clarifies existing protections for interstate mobility: a firm with a permit from another state may operate under certain conditions if it meets interstate mobility requirements rather than needing a Minnesota permit, with emphasis on peer review and practice through individuals with privileges (details in subsections b and c).

Section 2 — Corrective actions for firms (Minnesota Statutes 2024, § 326A.05, subd. 7, amended)

  • Firms that fall out of compliance due to changes in ownership or personnel must take corrective action promptly.
  • If compliance isn’t restored within a reasonable period defined by board rule, the firm permit (or practice privileges) may be suspended or revoked.

Section 3 — Interstate and practice privileges (Minnesota Statutes 2025 Supplement, § 326A.14, subd. 1, amended)

  • Creates a framework for individuals and firms from other states to practice in Minnesota with reduced entry barriers under certain conditions:

    • An individual with principal place of business outside Minnesota may be presumed to have qualifications substantially equivalent to Minnesota’s requirements if:
    • They hold a valid out-of-state CPA certificate/license/permit in good standing.
    • They hold a bachelor’s degree or higher with an accounting concentration (or equivalent as determined by the board).
    • They have passed the Uniform CPA Examination.
    • Such individuals may be granted practice privileges in Minnesota and are subject to Minnesota board requirements and disciplinary jurisdiction.
    • A practitioner and the employing firm are deemed to consent to Minnesota board authority and service of process, and must cease practice in Minnesota if the out-of-state license is no longer valid.
    • An individual granted practice privileges who performs attest services for a Minnesota-headquartered client must do so through a firm that has either Minnesota permit or practice privileges (clarified linkage to firm status).

  • Effective retroactively from May 24, 2025.

Section 4 — Firm mobility (Minnesota Statutes 2025 Supplement, new § 326A.14, subd. 3)

  • Establishes a new subdivision on firm mobility:
    • A firm with a valid out-of-state permit and no Minnesota office may perform attest services for Minnesota-headquartered clients without a Minnesota permit if:
    • The firm meets qualifications in § 326A.05, subd. 3, par. (b).
    • As a condition of renewal of the out-of-state permit, the other state requires peer reviews with requirements equivalent to Minnesota’s § 326A.05, subd. 8, pts. (a) and (e).
    • The firm performs services through a Minnesota-licensed individual or one with Minnesota practice privileges.

Who is affected

  • CPA firms with offices in Minnesota that provide attest or compilation services.
  • CPA firms from other states that perform services for Minnesota clients (particularly those without a Minnesota office) under mobility provisions.
  • Individual CPAs licensed in other states seeking Minnesota practice privileges.
  • Minnesota-licensed CPAs and firms who may be affected by new cross-state practice rules and peer-review requirements.

Procedural and timeline notes

  • Effective dates:
    • Some sections reference retroactive effectiveness: Section 3 is effective retroactively from May 24, 2025. Section 4 introduces new mobility provisions; effective timing aligns with the bill’s passage and implementation by the board.
  • Action history indicates introduction and first reading on 2026-04-23, with referral to State and Local Government.

Overall impact

  • The bill broadens mobility for out-of-state CPAs and firms, reducing barriers to providing services in Minnesota under practice privileges, while maintaining board oversight and requiring comparable peer-review standards.
  • It clarifies enforcement through corrective actions for firms, ensuring ongoing compliance.
  • It creates a more uniform framework for cross-state practice, potentially increasing competition and access to CPA services for Minnesota clients while preserving regulatory protections.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.