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Committee advances bill to allow ESOP ownership of CPA firms
Summary
A House committee voted to advance House Bill 1156, which would allow employee stock ownership plans (ESOPs) to hold ownership interests in certified public accounting firms while preserving the requirement that licensed CPAs retain effective control.
House Industry, Business and Labor Committee members voted to advance House Bill 1156, which would clarify that employee stock ownership plans (ESOPs) may be counted as owners of public accounting firms so long as the beneficial owners that control the ESOP meet the existing licensing-control rules for CPAs.
The bill’s sponsor, Representative Schauer, told the committee “House Bill 1156 would allow CPA firms to be owned by ESOPs,” and said the change is intended to preserve the public-protection purpose of the original law while updating it for modern ownership structures.
Supporters said the change simply lets regulators “look through” an ESOP to confirm that licensed CPAs retain a controlling financial interest. Toby Comer, owner of Hega Comer, a CPA firm headquartered in Fargo, testified the bill would…
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