Assembly Bill A566

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   566

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 7, 2009
                               ___________

Introduced by M. of A. CAHILL -- read once and referred to the Committee
  on Higher Education

AN  ACT  to amend the education law, in relation to exempt persons under
  the profession of public accountancy

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. Section 7407 of the education law is amended by adding two
new subdivisions g and h to read as follows:
  G. ANY INDIVIDUAL, NOT LICENSED AS A CERTIFIED  PUBLIC  ACCOUNTANT  OR
PUBLIC ACCOUNTANT PURSUANT TO THIS ARTICLE, FROM PERFORMING COMPILATIONS
OR  REVIEWS,  SO LONG AS THE COMPILATION OR REVIEW IS NOT ACCOMPANIED BY
ANY STATEMENT, REPORT, OR WORDING INDICATING SUCH INDIVIDUAL IS A CERTI-
FIED PUBLIC ACCOUNTANT, PUBLIC ACCOUNTANT, OR AUDITOR.
  H. ANY INDIVIDUAL, NOT LICENSED AS A CERTIFIED  PUBLIC  ACCOUNTANT  OR
PUBLIC  ACCOUNTANT PURSUANT TO THIS ARTICLE, FROM USING THE FOLLOWING OR
SUBSTANTIALLY SIMILAR STATEMENT WHEN PERFORMING COMPILATIONS OR  REVIEWS
PURSUANT TO SUBDIVISION G OF THIS SECTION:
  "(I/WE) HAVE PREPARED THE ACCOMPANYING (FINANCIAL STATEMENTS) OF (NAME
OF ENTITY) AS OF (TIME PERIOD) FOR THE (PERIOD) THEN ENDED. THIS PRESEN-
TATION  IS  LIMITED  TO  PREPARING  IN THE FORM OF FINANCIAL STATEMENTS,
INFORMATION THAT IS THE REPRESENTATION OF (NAME OF ENTITY).   (I/WE)  DO
NOT EXPRESS ANY FORM OF ASSURANCE WITH RESPECT TO THESE FINANCIAL STATE-
MENTS."
  S 2. Subdivision 2 of section 7408 of the education law, as amended by
chapter  994  of the laws of 1971, is amended and four new subdivisions,
3, 4, 5 and 6 are added to read as follows:
  2. Any person shall be guilty of a class A misdemeanor who shall  use,
in  connection with the practice of public accountancy, or in any manner
tending to imply that he OR SHE is an independent accountant or auditor,
the designations "chartered accountant", "certified accountant", "expert

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD00633-01-9

A. 566                              2

accountant", "certified tax  accountant",  "tax  accountant",  "enrolled
accountant",  "enrolled  public  accountant",  "registered  accountant",
"licensed accountant",  "incorporated  accountant",  "registered  public
accountant",  "licensed public accountant", or any abbreviation thereof,
or the letters  "C.A.",  "E.A.",  "C.T.A.",  "T.A.",  "E.P.A.",  "R.A.",
"L.A.", "I.A.", "P.A.", "R.P.A.", or, "L.P.A.", except as provided else-
where in this article, or any other designation tending to imply that he
OR SHE has expert knowledge in accounting or auditing.
  3.  NO  FIRM  SHALL HOLD ITSELF OUT TO THE PUBLIC, IN CONSIDERATION OF
COMPENSATION RECEIVED OR TO BE RECEIVED,  FOR  THE  PRACTICE  OF  PUBLIC
ACCOUNTANCY AS DEFINED IN SECTION SEVENTY-FOUR HUNDRED ONE OF THIS ARTI-
CLE  IN  THIS  STATE OR USE THE TITLE "CPA" OR "CPA FIRM" OR "PA" OR "PA
FIRM" WITHOUT A REGISTRATION FROM THE  DEPARTMENT.  AS  A  CONDITION  OF
REGISTRATION  OR  ITS  RENEWAL,  THE  FIRM SHALL DEMONSTRATE THAT IT HAS
COMPLIED WITH THE PROVISIONS OF THIS ARTICLE, ANY OTHER APPLICABLE  LAWS
AND  SUCH  OTHER  REQUIREMENTS  AS THE DEPARTMENT MAY IMPOSE, CONSISTENT
WITH THIS ARTICLE.
  4. NOTHING IN THIS SUBDIVISION SHALL PREVENT AN INDIVIDUAL ENROLLED TO
PRACTICE BEFORE THE UNITED STATES INTERNAL REVENUE SERVICE, PURSUANT  TO
REGULATIONS  PROMULGATED BY THE INTERNAL REVENUE SERVICE, FROM USING THE
DESIGNATION "ENROLLED AGENT" OR THE  LETTERS  "E.A.".  THIS  SUBDIVISION
SHALL NOT APPLY TO ANY DESIGNATIONS AUTHORIZED BY A NATIONAL CREDENTIAL-
ING BODY RECOGNIZED BY THE DEPARTMENT.
  5.  FOR PURPOSES OF THIS SECTION, THE TERM "MEMBER" MEANS A PERSON WHO
HAS BEEN ADMITTED AS A MEMBER OF A PROFESSIONAL SERVICE LIMITED  LIABIL-
ITY  COMPANY  IN ACCORDANCE WITH THE TERMS AND PROVISIONS OF THE LIMITED
LIABILITY COMPANY LAW AND THE OPERATING AGREEMENT OF  SUCH  PROFESSIONAL
SERVICE LIMITED LIABILITY COMPANY, AND HAS A MEMBERSHIP INTEREST IN SUCH
LIMITED  LIABILITY COMPANY WITH THE RIGHTS, OBLIGATIONS, PREFERENCES AND
LIMITATIONS SPECIFIED UNDER THE LIMITED LIABILITY COMPANY LAW  AND  SUCH
OPERATING AGREEMENT.
  6.  AN  INDIVIDUAL  NOT  LICENSED  AS A CERTIFIED PUBLIC ACCOUNTANT OR
PUBLIC ACCOUNTANT, OR ANY ENTITY NOT REGISTERED PURSUANT TO THIS ARTICLE
MAY PREPARE A FINANCIAL STATEMENT SO LONG AS IT IS  NOT  ACCOMPANIED  BY
ANY STATEMENT, REPORT, OR WORDING INDICATING SUCH INDIVIDUAL IS A CERTI-
FIED  PUBLIC  ACCOUNTANT  OR  PUBLIC  ACCOUNTANT  OR THAT SUCH ENTITY IS
REGISTERED TO PRACTICE PUBLIC ACCOUNTANCY UNDER THIS ARTICLE. SUCH  NON-
LICENSED  INDIVIDUALS  AND  NON-REGISTERED  ENTITIES  SHALL  INCLUDE THE
FOLLOWING WRITTEN LANGUAGE WHEN PREPARING FINANCIAL STATEMENTS:
  A. "(I, WE) HAVE PREPARED THE ACCOMPANYING FINANCIAL  STATEMENT(S)  OF
(NAME  OF  BUSINESS OR ORGANIZATION) AS OF THE (TIME PERIOD) AND FOR THE
(PERIOD) THEN ENDED. THIS PRESENTATION IS LIMITED TO PREPARING,  IN  THE
FORM OF A FINANCIAL STATEMENT(S), INFORMATION THAT IS THE REPRESENTATION
OF (NAME OF BUSINESS OR ORGANIZATION)"; AND
  B.  "(I,  WE)  HAVE NOT AUDITED OR REVIEWED THE ACCOMPANYING FINANCIAL
STATEMENT(S) AND ACCORDINGLY DO NOT EXPRESS AN OPINION OR ANY OTHER FORM
OF ASSURANCE ON THEM."
  S 3. This act shall take effect immediately.