1.1                          A bill for an act 
  1.2             relating to professions; board of accountancy; 
  1.3             changing board membership; changing educational 
  1.4             requirements; providing for certification of licensed 
  1.5             accounting practitioners; appropriating money; 
  1.6             amending Minnesota Statutes 1998, sections 326.1655, 
  1.7             by adding a subdivision; 326.17; 326.18, subdivisions 
  1.8             4 and 5; 326.192, subdivisions 1, 4, and by adding a 
  1.9             subdivision; 326.20, subdivisions 1 and 3; 326.211, 
  1.10            subdivisions 5, 6, 7, 8, 9, 10, and by adding 
  1.11            subdivisions; 326.212, subdivision 1, and by adding a 
  1.12            subdivision; and 326.224; proposing coding for new law 
  1.13            in Minnesota Statutes, chapter 326; repealing 
  1.14            Minnesota Statutes 1998, section 326.212, subdivision 
  1.15            4. 
  1.16  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.17     Section 1.  Minnesota Statutes 1998, section 326.1655, is 
  1.18  amended by adding a subdivision to read: 
  1.19     Subd. 5a.  [LAP.] "LAP" means licensed accounting 
  1.20  practitioner. 
  1.21     Sec. 2.  Minnesota Statutes 1998, section 326.17, is 
  1.22  amended to read: 
  1.23     326.17 [BOARD OF ACCOUNTANCY.] 
  1.24     (a) A board of accountancy is created to carry out the 
  1.25  purposes and enforce the provisions of sections 326.165 to 
  1.26  326.229.  It consists of between ~~seven~~ nine and ~~nine~~ 11 citizens 
  1.27  of this state appointed by the governor as provided in this 
  1.28  section.  Two shall be public members as defined by section 
  1.29  214.02, five shall be actively licensed certified public 
  1.30  accountants, ~~and~~ two shall be actively licensed public 
  2.1   accountants, and two shall be actively licensed accounting 
  2.2   practitioners under the provisions of sections 326.165 to 
  2.3   326.229.  When the number of licensed public accountants in this 
  2.4   state drops below 100, their representation on the board of 
  2.5   accountancy shall drop to one and the board shall consist of two 
  2.6   public members, five actively licensed certified public 
  2.7   accountants, ~~and~~ one actively licensed public accountant, and 
  2.8   two actively licensed accounting practitioners.  At the time 
  2.9   when the number of licensed public accountants in this state 
  2.10  drops below 25, the licensed public accountants shall lose their 
  2.11  representation on the board, except that the licensed public 
  2.12  accountant then serving on the board shall be allowed to 
  2.13  complete the term of office.  The board shall then consist of 
  2.14  two public members ~~and~~ five actively licensed certified public 
  2.15  accountants, and two actively licensed accounting practitioners. 
  2.16     (b) Membership terms, compensation of members, removal of 
  2.17  members, the filling of membership vacancies, and fiscal year 
  2.18  and reporting requirements shall be as provided in sections 
  2.19  214.07 to 214.09.  The provision of staff, administrative 
  2.20  services, and office space; the review and processing of 
  2.21  complaints; the setting of board fees; and other provisions 
  2.22  relating to board operations shall be as provided in chapter 214 
  2.23  and sections 326.165 to 326.229. 
  2.24     Sec. 3.  Minnesota Statutes 1998, section 326.18, 
  2.25  subdivision 4, is amended to read: 
  2.26     Subd. 4.  [EXAMINATION.] The board may ~~make~~ use ~~of~~ all or 
  2.27  any part of the uniform certified public accountant examination 
  2.28  and advisory grading service provided by the American Institute 
  2.29  of Certified Public Accountants for certified public accountant 
  2.30  applicants and other such examination provided by the 
  2.31  Accreditation Council for Accountancy and Taxation for licensed 
  2.32  accounting practitioner applicants if it deems it appropriate to 
  2.33  assist it in performing its duties.  These examinations shall be 
  2.34  conducted by the board.  The examinations shall take place as 
  2.35  often as may be convenient in the opinion of the board.  
  2.36     Sec. 4.  Minnesota Statutes 1998, section 326.18, 
  3.1   subdivision 5, is amended to read: 
  3.2      Subd. 5.  [RECORDS, CERTIFICATES, AND LICENSES.] (a) The 
  3.3   board shall keep records of its proceedings, an accurate list of 
  3.4   all applications made, licenses and certificates issued, and 
  3.5   licenses and certificates disciplined pursuant to section 
  3.6   326.229, and shall keep proper financial records in which there 
  3.7   shall be entered a complete statement of the cash receipts and 
  3.8   disbursements.  All records of the board shall be subject to 
  3.9   chapter 13. 
  3.10     (b) The board shall issue to each person who satisfies the 
  3.11  examination requirements of section 326.19, subdivision 1, a 
  3.12  certified public accountant certificate and shall maintain a 
  3.13  record of that issuance.  The board shall issue a license as a 
  3.14  certified public accountant to each holder of a certified public 
  3.15  accountant certificate who satisfies the experience requirements 
  3.16  for a license as a certified public accountant or to a person 
  3.17  who has been issued a certified public accountant certificate 
  3.18  under section 326.19, subdivision 3.  The board shall maintain a 
  3.19  record of the issuance.  It shall adopt and provide itself with 
  3.20  a seal with a band inscribed "Certified Public Accountant, State 
  3.21  of Minnesota," with the coat of arms of Minnesota in the center, 
  3.22  which seal shall be affixed to each certificate of the certified 
  3.23  public accountant issued under sections 326.165 to 326.229. 
  3.24     (c) The board shall issue to each person who qualifies for 
  3.25  a license under sections 326.165 to 326.229 as a licensed public 
  3.26  accountant a certificate as a licensed public accountant and 
  3.27  shall maintain a record of that issuance.  It shall adopt and 
  3.28  provide itself with a seal with a band inscribed "Licensed 
  3.29  Public Accountant, State of Minnesota," with the coat of arms of 
  3.30  Minnesota in the center, which seal shall be affixed to each 
  3.31  certificate of the licensed public accountant issued under 
  3.32  sections 326.165 to 326.229.  
  3.33     (d) The board shall issue to each person who qualifies for 
  3.34  a license under sections 326.165 to 326.229 a certificate as a 
  3.35  licensed accounting practitioner and shall maintain a record of 
  3.36  that issuance.  The board shall adopt and provide itself with a 
  4.1   seal with a band inscribed "Licensed Accountant Practitioner, 
  4.2   State of Minnesota," with the coat of arms of the state of 
  4.3   Minnesota in the center.  The seal shall be affixed to each 
  4.4   certificate of a licensed accounting practitioner. 
  4.5      Sec. 5.  [326.1911] [CERTIFICATES AS LICENSED ACCOUNTING 
  4.6   PRACTITIONERS.] 
  4.7      Subdivision 1.  [CERTIFICATES.] (a) A licensed accounting 
  4.8   professional certificate shall be granted by the board to a 
  4.9   person who: 
  4.10     (1) has attained the age of 18 years; 
  4.11     (2) is of good character; 
  4.12     (3) meets the following education and experience 
  4.13  requirements: 
  4.14     (i) until January 1, 2001, has a high school diploma and 
  4.15  has had five or more years experience of the type specified in 
  4.16  section 326.19, subdivision 4; meets the educational 
  4.17  requirements in item (ii) and has two or more years of 
  4.18  experience of the type specified in section 326.19, subdivision 
  4.19  4; and has successfully completed an examination as provided in 
  4.20  section 326.18; or 
  4.21     (ii) has an associate or equivalent degree, a baccalaureate 
  4.22  or equivalent degree, or a certificate from an area vocational 
  4.23  technical school, college, or university fully accredited by the 
  4.24  North Central Association of Colleges and Secondary Schools, an 
  4.25  equivalent crediting association, or a Minnesota licensed 
  4.26  private vocational school fulfilling the requirements of 
  4.27  sections 141.21 to 141.36.  For purposes of this subdivision, an 
  4.28  associate degree equivalent or a certificate is the successful 
  4.29  completion of 60 semester hours or 90 quarter hours of which 40 
  4.30  semester hours or 60 quarter hours, respectively, must be in 
  4.31  accounting and related coursework and at least 20 semester hours 
  4.32  or 30 quarter credit hours, respectively, must be in general 
  4.33  education; and 
  4.34     (4) has successfully completed an examination as provided 
  4.35  in section 326.18. 
  4.36     (b) Notwithstanding paragraph (a), clause (4), the board 
  5.1   shall issue a licensed accounting practitioner certificate to 
  5.2   any person who, before January 1, 2001, satisfies the 
  5.3   requirements of paragraph (a), clauses (1) to (3).  After 
  5.4   December 31, 2000, the board shall issue a licensed accounting 
  5.5   practitioner certificate only to a person satisfying all of the 
  5.6   requirements of paragraph (a). 
  5.7      Subd. 2.  [CERTIFICATE OF RECIPROCITY.] The board may issue 
  5.8   a certificate to an applicant who does not satisfy the 
  5.9   requirements of subdivision 1 but who intends to engage in the 
  5.10  full-time practice of public accountancy in this state if the 
  5.11  applicant holds a current certificate issued by another state 
  5.12  that, in the opinion of the board, has been issued under 
  5.13  requirements equivalent to the requirements for certification of 
  5.14  a licensed accounting practitioner in this state.  The board may 
  5.15  issue a certificate under this subdivision only if the other 
  5.16  state in which the applicant is certified provides similar 
  5.17  reciprocity of licensed accounting practitioners of this state. 
  5.18     Sec. 6.  Minnesota Statutes 1998, section 326.192, 
  5.19  subdivision 1, is amended to read: 
  5.20     Subdivision 1.  [APPLICATION.] Upon application made upon 
  5.21  the affidavit of a general partner of the partnership, secretary 
  5.22  of the corporation, or member of the limited liability company 
  5.23  or partnership who is a CPA ~~or a~~, LPA, or LAP of this state in 
  5.24  good standing, the board shall issue a firm license.  The 
  5.25  license shall be valid for a period prescribed by the board, 
  5.26  unless the license is revoked sooner.  The application shall 
  5.27  confer upon the board the consent of the partnership, 
  5.28  corporation, or limited liability company or partnership, and of 
  5.29  the general partner, secretary, or member making the 
  5.30  application, to the board's jurisdiction over the acts of the 
  5.31  partnership and its partners or agents, of the corporation and 
  5.32  its shareholders or agents within the state, or of the limited 
  5.33  liability company or partnership and its members or agents. 
  5.34     Sec. 7.  Minnesota Statutes 1998, section 326.192, is 
  5.35  amended by adding a subdivision to read: 
  5.36     Subd. 3a.  [LAP FIRMS.] No partnership, corporation, or 
  6.1   limited liability company or partnership shall style itself as a 
  6.2   firm of licensed accounting practitioners unless: 
  6.3      (1) all partners, shareholders, or members resident in this 
  6.4   state are licensed accounting practitioners, licensed public 
  6.5   accountants, or certified public accountants of this state; 
  6.6      (2) all managers in charge of offices maintained in this 
  6.7   state are licensed accounting practitioners, licensed public 
  6.8   accountants, or certified public accountants of this state; 
  6.9      (3) all partners, shareholders, or members wherever 
  6.10  situated, are licensed accounting practitioners or licensed 
  6.11  public accountants of this state or are certified public 
  6.12  accountants of at least one of the states or territories of the 
  6.13  District of Columbia; and 
  6.14     (4) the partnership, corporation, or limited liability 
  6.15  company or partnership is duly licensed under this section. 
  6.16     Sec. 8.  Minnesota Statutes 1998, section 326.192, 
  6.17  subdivision 4, is amended to read: 
  6.18     Subd. 4.  [COOPERATIVE AUDITING ORGANIZATION.] Any 
  6.19  cooperative auditing organization organized under chapter 308A 
  6.20  is qualified for a cooperative auditing service license and may 
  6.21  style itself as a licensed cooperative auditing service if: 
  6.22     (1) for a minimum of one year prior to July 1, 1979, it 
  6.23  rendered auditing or accounting of business analysis services to 
  6.24  its members only; and 
  6.25     (2) its managers in charge of offices maintained in this 
  6.26  state are certified public accountants ~~or~~, licensed public 
  6.27  accountants of this state, or licensed accounting practitioner.  
  6.28  Cooperative auditing services shall comply with all requirements 
  6.29  imposed by sections 326.165 to 326.229 and the board's rules 
  6.30  governing firms. 
  6.31     Sec. 9.  Minnesota Statutes 1998, section 326.20, 
  6.32  subdivision 1, is amended to read: 
  6.33     Subdivision 1.  [LICENSE RENEWAL OF CERTIFIED PUBLIC 
  6.34  ACCOUNTANTS ~~AND~~, LICENSED PUBLIC ACCOUNTANTS, AND LICENSED 
  6.35  ACCOUNTING PRACTITIONERS.] (a) Every holder of a CPA license ~~or~~, 
  6.36  an LPA license, or an LAP license issued by the board, if 
  7.1   engaged, or intending to be engaged, in the practice of public 
  7.2   accounting within this state at any time during a calendar year, 
  7.3   shall renew the license as active as prescribed by the board by 
  7.4   rule. 
  7.5      (b) Every holder of a CPA license ~~or~~, an LPA license, or an 
  7.6   LAP license issued by the board, who does not intend to actively 
  7.7   engage in the practice of public accounting within this state at 
  7.8   any time during a calendar year, shall renew the license as 
  7.9   inactive or active, as prescribed by the board by rule under 
  7.10  authority granted in section 326.18, subdivision 3.  Previously 
  7.11  licensed individuals who do not actively engage in the practice 
  7.12  of public accounting in any manner or who do not hold out as 
  7.13  CPAs ~~or~~, LPAs, or LAPs in any manner are not required to obtain 
  7.14  a license nor may the board require those individuals to 
  7.15  surrender their certificates.  The board must provide for the 
  7.16  relicensing of those individuals if they wish to return to the 
  7.17  practice of public accounting.  
  7.18     (c) The board may establish temporary, active, and inactive 
  7.19  licenses and adopt rules, under authority granted in section 
  7.20  326.18, subdivision 3, governing them. 
  7.21     (d) The board shall, upon proper application made by any 
  7.22  holder of an unrevoked or unsuspended license as a CPA ~~or~~ 
  7.23  ~~unrevoked or unsuspended Minnesota license as a~~, an LPA, or an 
  7.24  LAP, renew the license which shall be good for a period 
  7.25  prescribed by the board, unless the certificate or license is 
  7.26  revoked or suspended during that period.  Interim licenses shall 
  7.27  be issued to individuals who have satisfied the provisions of 
  7.28  sections 326.165 to 326.229 within the year.  If a license has 
  7.29  been conditioned, limited, or otherwise restricted or 
  7.30  disciplined pursuant to section 326.229, any other condition, 
  7.31  limitation, or discipline shall remain for the term of the 
  7.32  board's order imposing the condition, limitation, or other 
  7.33  discipline, notwithstanding renewal of the license.  
  7.34     (e) The CPA and LAP certificates of persons who fail to 
  7.35  renew their licenses as required by this subdivision for more 
  7.36  than two years after expiration shall be automatically revoked 
  8.1   by order of the board.  This includes all persons who, on August 
  8.2   1, 1998, did not hold an active or an inactive license in 1996, 
  8.3   1997, and 1998.  The orders may be issued by the board without 
  8.4   following the procedures of chapter 14, provided the board 
  8.5   notifies each such person by mail at the person's last known 
  8.6   address on file with the board at least three days prior to the 
  8.7   issuance of any such order.  No such notice is required if the 
  8.8   last communication sent by the board to a licensee was returned 
  8.9   to the board by the United States Postal Service as 
  8.10  undeliverable and with no forwarding address.  Certificates so 
  8.11  revoked by the board may be reinstated, if at all, pursuant to 
  8.12  section 326.229, subdivision 7.  This paragraph ~~shall~~ does not 
  8.13  apply to previously licensed individuals who have notified the 
  8.14  board that they will not hold out as CPAs ~~or~~, LPAs, or LAPs in 
  8.15  any manner or practice public accounting in any manner. 
  8.16     Sec. 10.  Minnesota Statutes 1998, section 326.20, 
  8.17  subdivision 3, is amended to read: 
  8.18     Subd. 3.  [UNLICENSED PRACTICE.] It is unlawful for any CPA 
  8.19  ~~or~~, LPA, or LAP or a firm defined under section 326.1655, 
  8.20  subdivision 5, to engage in the practice of public accounting 
  8.21  within this state unless the CPA, LPA, LAP, or firm defined 
  8.22  under section 326.1655, subdivision 5, is duly licensed to the 
  8.23  extent required by sections 326.165 to 326.229. 
  8.24     Sec. 11.  Minnesota Statutes 1998, section 326.211, is 
  8.25  amended by adding a subdivision to read: 
  8.26     Subd. 4a.  [LICENSED ACCOUNTING PRACTITIONER; USE OF TITLE 
  8.27  BY INDIVIDUAL.] No person shall assume or use the title or 
  8.28  designation "licensed accounting practitioner" or any other 
  8.29  title, designation, words, letters, abbreviation, sign, card, or 
  8.30  device tending to indicate that the person is a licensed 
  8.31  accounting practitioner, unless the person has received a 
  8.32  licensed accounting practitioner certificate under section 
  8.33  326.1911, and all of the person's offices in this state for the 
  8.34  practice of public accounting are maintained and licensed as 
  8.35  required under section 326.20. 
  8.36     Sec. 12.  Minnesota Statutes 1998, section 326.211, is 
  9.1   amended by adding a subdivision to read: 
  9.2      Subd. 4b.  [LICENSED ACCOUNTING PRACTITIONER; USE OF TITLE 
  9.3   BY PARTNERSHIP OR CORPORATION.] No partnership, corporation, or 
  9.4   limited liability company or partnership shall assume or use the 
  9.5   title or designation "licensed accounting practitioner" or any 
  9.6   other title, designation, words, letters, abbreviation, sign, 
  9.7   card, or device tending to indicate that the partnership or 
  9.8   corporation is composed of licensed accounting practitioners, 
  9.9   unless the partnership, corporation, or limited liability 
  9.10  company or partnership is licensed as a firm of licensed 
  9.11  accounting practitioners under section 326.192, and all offices 
  9.12  of the partnership, corporation, or limited liability company or 
  9.13  partnership in this state for the practice of public accounting 
  9.14  are maintained and licensed as required under section 326.192. 
  9.15     Sec. 13.  Minnesota Statutes 1998, section 326.211, 
  9.16  subdivision 5, is amended to read: 
  9.17     Subd. 5.  [PROHIBITED AND PERMITTED TITLES.] No person, 
  9.18  partnership, corporation, or limited liability company or 
  9.19  partnership shall assume or use the title or designation 
  9.20  "certified accountant," "chartered accountant," "enrolled 
  9.21  accountant," "licensed accountant," "public accountant," 
  9.22  ~~"accredited accountant,"~~ "accounting practitioner," "registered 
  9.23  accountant," or any other title or designation likely to be 
  9.24  confused with "certified public accountant," ~~or~~ "licensed public 
  9.25  accountant," "licensed accounting practitioner," or any of the 
  9.26  abbreviations "CA," "LA," "PA," "RA," "AA," "AP," or similar 
  9.27  abbreviations likely to be confused with "CPA," ~~or~~ "LPA," or 
  9.28  LAP."  Anyone other than a licensed accounting practitioner who 
  9.29  holds a current license issued under section 326.19 or 326.20 
  9.30  and ~~all of~~ whose offices in this state for the practice of 
  9.31  public accounting are maintained and licensed as required under 
  9.32  section 326.192 may hold out to the public as an "auditor." 
  9.33     Sec. 14.  Minnesota Statutes 1998, section 326.211, 
  9.34  subdivision 6, is amended to read: 
  9.35     Subd. 6.  [FINANCIAL STATEMENT BY INDIVIDUAL.] ~~No person's~~ 
  9.36  ~~name shall be signed or affixed by the person~~ Unless a person 
 10.1   holds a current license issued under section 326.20 and all of 
 10.2   the person's offices in this state for the practice of public 
 10.3   accounting are maintained and licensed under section 326.20, the 
 10.4   person may not: 
 10.5      (1) sign or affix the person's name nor shall any trade or 
 10.6   assumed name be used by the person professionally or in business 
 10.7   to any opinion or certificate attesting in any way to the 
 10.8   reliability of any representation or estimate in regard to any 
 10.9   person or organization embracing financial 
 10.10  ~~information~~ statements, or facts respecting compliance with 
 10.11  conditions established by law or contract, including, but not 
 10.12  limited to, statutes, ordinances, rules, grants, loans, and 
 10.13  appropriations~~, together with~~; or 
 10.14     (2) use any wording accompanying or contained in the 
 10.15  opinion or certificate, which indicates that the person is an 
 10.16  accountant or auditor or that the person has expert knowledge in 
 10.17  accounting or auditing~~, without holding a current license issued~~ 
 10.18  ~~under section 326.19 or 326.20 and all of the person's offices~~ 
 10.19  ~~in this state for the practice of public accounting are~~ 
 10.20  ~~maintained and licensed under section 326.192~~.  The provisions 
 10.21  of this subdivision ~~shall~~ do not prohibit any officer, employee, 
 10.22  partner, or principal of any organization from affixing that 
 10.23  person's signature to any statement or report in reference to 
 10.24  the affairs of the organization with any wording designating the 
 10.25  position, title, or office which the person holds in the 
 10.26  organization, nor shall the provisions of this subdivision 
 10.27  prohibit any act of a public official or public employee in the 
 10.28  performance of duties. 
 10.29     Sec. 15.  Minnesota Statutes 1998, section 326.211, 
 10.30  subdivision 7, is amended to read: 
 10.31     Subd. 7.  [FINANCIAL STATEMENT BY PARTNERSHIP, CORPORATION, 
 10.32  OR LIMITED LIABILITY COMPANY OR PARTNERSHIP.] Unless the 
 10.33  partnership, corporation, or limited liability company or 
 10.34  partnership is licensed under sections 326.165 to 326.229, no 
 10.35  person ~~shall~~ may: 
 10.36     (1) sign or affix a partnership, corporate, or limited 
 11.1   liability company or partnership name to any opinion or 
 11.2   certificate attesting in any way to the reliability of any 
 11.3   representation or estimate in regard to any person or 
 11.4   organization embracing financial ~~information~~ statements, or 
 11.5   facts respecting compliance with conditions established by law 
 11.6   or contract, including, but not limited to, statutes, 
 11.7   ordinances, rules, grants, loans, and appropriations~~, together~~ 
 11.8   ~~with~~; or 
 11.9      (2) use any wording accompanying or contained in the 
 11.10  opinion or certificate which indicates that the partnership, 
 11.11  corporation, or limited liability company or partnership is 
 11.12  composed of or employs accountants, or auditors, persons having 
 11.13  expert knowledge in accounting or auditing~~, unless the~~ 
 11.14  ~~partnership, corporation, or limited liability company or~~ 
 11.15  ~~partnership is licensed under sections 326.17 to 326.229~~.  
 11.16     Sec. 16.  Minnesota Statutes 1998, section 326.211, 
 11.17  subdivision 8, is amended to read: 
 11.18     Subd. 8.  [AUDITOR; USE OF TITLE.] (a) No person, 
 11.19  partnership, corporation, or limited liability company or 
 11.20  partnership not licensed under sections 326.19 to 326.20 shall 
 11.21  assume or use the title "auditor" on any sign, card, letterhead, 
 11.22  or in any advertisement or directory without indicating thereon 
 11.23  or therein that the person, partnership, corporation, or limited 
 11.24  liability company or partnership does not hold such a license, 
 11.25  provided that this subdivision shall not prohibit any officer, 
 11.26  employee, partner, or principal of any organization from being 
 11.27  described by the position, title, or office that person holds in 
 11.28  the organization, nor shall this subdivision prohibit any act of 
 11.29  a public official or public employee in the performance of 
 11.30  duties. 
 11.31     (b) Notwithstanding paragraph (a), a licensed accounting 
 11.32  practitioner may not use the title "auditor" under any 
 11.33  circumstances. 
 11.34     Sec. 17.  Minnesota Statutes 1998, section 326.211, 
 11.35  subdivision 9, is amended to read: 
 11.36     Subd. 9.  [TITLE INDICATING PARTNERSHIP, CORPORATION, OR 
 12.1   LIMITED LIABILITY COMPANY OR PARTNERSHIP.] (a) No person shall 
 12.2   assume or use the title or designation "certified public 
 12.3   accountant," ~~or~~ "licensed public accountant," or "licensed 
 12.4   accounting practitioner" in conjunction with names indicating or 
 12.5   implying that there is a partnership, corporation, or limited 
 12.6   liability company or partnership, if there is no bona fide 
 12.7   partnership, corporation, or limited liability company or 
 12.8   partnership licensed under section 326.192. 
 12.9      (b) No person shall assume or use the title or designation 
 12.10  "certified public accountant" or "licensed public accountant" in 
 12.11  conjunction with the designation "and Company," "and Co.," "and 
 12.12  Associates," "Co.," or a similar designation if, in any such 
 12.13  case, there is in fact no bona fide partnership, corporation, or 
 12.14  limited liability company or partnership with more than one 
 12.15  shareholder licensed under section 326.192.  
 12.16     (c) A sole proprietor, partnership, or corporation lawfully 
 12.17  using the title or designation in conjunction with the names or 
 12.18  designation on July 1, 1992, may continue to do so if otherwise 
 12.19  in compliance with the provisions of sections 326.165 to 326.229 
 12.20  until December 31, 1999. 
 12.21     Sec. 18.  Minnesota Statutes 1998, section 326.211, 
 12.22  subdivision 10, is amended to read: 
 12.23     Subd. 10.  [UNLICENSED CORPORATION; PROHIBITED USE OF 
 12.24  TITLE.] No partnership, corporation, or limited liability 
 12.25  company or partnership, other than one licensed under sections 
 12.26  326.165 to 326.229, and in compliance with the rules of the 
 12.27  board, shall style itself as certified public accountants ~~or~~, 
 12.28  licensed public accountants, or licensed accounting 
 12.29  practitioner, or use the abbreviation "CPA," ~~or~~ "LPA," or 
 12.30  "LAP" in connection with its corporate name.  
 12.31     Sec. 19.  Minnesota Statutes 1998, section 326.211, is 
 12.32  amended by adding a subdivision to read: 
 12.33     Subd. 11.  [ACCOUNTANT; USE OF TITLE.] No person, 
 12.34  partnership, corporation, or limited liability company or 
 12.35  partnership not licensed under sections 326.165 to 326.229 may 
 12.36  assume or use the title "accountant" on any sign, card, 
 13.1   letterhead, or in any advertisement or directory without 
 13.2   indicating that the person, partnership, corporation, or limited 
 13.3   liability company or partnership does not hold such a license.  
 13.4   This subdivision does not prohibit an officer, employee, 
 13.5   partner, manager, or principal of an organization from being 
 13.6   described by the position, title, or office that person holds in 
 13.7   the organization, nor does it prohibit any act of a public 
 13.8   official or public employee in the performance of duties. 
 13.9      Sec. 20.  Minnesota Statutes 1998, section 326.211, is 
 13.10  amended by adding a subdivision to read: 
 13.11     Subd. 12.  [FINANCIAL STATEMENTS AND ACCOUNTING SERVICES BY 
 13.12  UNLICENSED PERSON.] No person, partnership, corporation, or 
 13.13  limited liability company or partnership not licensed under 
 13.14  sections 326.165 to 326.229 may issue a compilation report of 
 13.15  financial statements, a review report of financial statements, 
 13.16  or an audit report of financial statements.  This prohibition 
 13.17  does not apply to the performance of any persons of other 
 13.18  services involving the use of accounting skills, including 
 13.19  bookkeeping, the preparation of tax returns, management advisory 
 13.20  or consulting services, or the preparation of financial 
 13.21  statements without the issuance of a compilation report, review 
 13.22  report, or audit report thereon. 
 13.23     Sec. 21.  Minnesota Statutes 1998, section 326.212, 
 13.24  subdivision 1, is amended to read: 
 13.25     Subdivision 1.  [EMPLOYEES; ASSISTANTS.] Nothing contained 
 13.26  in sections 326.165 to 326.229 shall prohibit any person not a 
 13.27  certified public accountant ~~or~~, licensed public accountant, or 
 13.28  licensed accounting practitioner from serving as an employee of, 
 13.29  or an assistant to, a certified public accountant ~~or~~, licensed 
 13.30  public accountant, or licensed accounting practitioner, or 
 13.31  partnership, corporation, or limited liability company or 
 13.32  partnership composed of certified public accountants ~~or~~, 
 13.33  licensed public accountants, or licensed accounting 
 13.34  practitioners, provided that the person shall not issue any 
 13.35  accounting or financial statement over the person's name. 
 13.36     Sec. 22.  Minnesota Statutes 1998, section 326.212, is 
 14.1   amended by adding a subdivision to read: 
 14.2      Subd. 6.  [SSARS SERVICES.] Nothing contained in sections 
 14.3   326.165 to 326.229 prohibits any person holding a certificate as 
 14.4   a licensed accounting practitioner from providing accounting 
 14.5   services recognized under Statement on Standards for Accounting 
 14.6   Review Services (SSARS), provided that the services do not 
 14.7   include reviews or audits of financial statements. 
 14.8      Sec. 23.  Minnesota Statutes 1998, section 326.224, is 
 14.9   amended to read: 
 14.10     326.224 [SINGLE ACT EVIDENCE OF PRACTICE.] 
 14.11     Displaying or presenting a card, sign, advertisement, or 
 14.12  other printed, engraved, or written instrument or device bearing 
 14.13  a person's name in conjunction with the words "certified public 
 14.14  accountant" or any abbreviation thereof, or "licensed public 
 14.15  accountant" or any abbreviation thereof, or "licensed accounting 
 14.16  practitioner" or any abbreviation of those words, except as 
 14.17  permitted by sections 326.165 to 326.229, ~~shall be~~ is prima 
 14.18  facie evidence in any action brought under sections 326.165 to 
 14.19  326.229 that the person whose name is so displayed caused or 
 14.20  procured the displaying or presenting of the card, sign, 
 14.21  advertisement, or other printed, engraved, or written instrument 
 14.22  or device, and that the person is holding out to be a certified 
 14.23  public accountant ~~or a~~, licensed public accountant, or a 
 14.24  licensed accounting practitioner.  In any action evidence of the 
 14.25  commission of a single act prohibited by sections 326.165 to 
 14.26  326.229 shall be sufficient to justify an injunction or a 
 14.27  conviction without evidence of a general course of conduct. 
 14.28     Sec. 24.  [REPEALER.] 
 14.29     Minnesota Statutes 1998, section 326.212, subdivision 4, is 
 14.30  repealed. 
 14.31     Sec. 25.  [APPROPRIATION.] 
 14.32     $....... is appropriated from the general fund to the board 
 14.33  of accountancy for the purposes of sections 1 to 23. 
 14.34     Sec. 26.  [EFFECTIVE DATE.] 
 14.35     Sections 1 to 24 are effective the day following final 
 14.36  enactment.