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

                                  9432

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 6, 2010
                               ___________

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

AN ACT to amend the education law, in relation to the practice of public
  accountancy by accountants who are not licensed in New York state; and
  to repeal certain provisions of such law relating thereto

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

  Section 1. Subdivisions 5, 6, and 7 of section 7401-a of the education
law, as added by chapter 651 of the laws of 2008, are amended to read as
follows:
  5.    "HOME  OFFICE"  IS  THE  LOCATION SPECIFIED BY THE CLIENT AS THE
ADDRESS TO WHICH A SERVICE DESCRIBED IN PARAGRAPH C OF  SUBDIVISION  TWO
OF SECTION SEVENTY-FOUR HUNDRED SIX OF THIS ARTICLE IS DIRECTED.
  6.  "Principal place of business" means the office location designated
by the licensee from which the person directs, controls, and coordinates
his or her professional services.
  [6.] 7. "Public accountant" or "PA" means any person who has  received
a license from the department as a public accountant for the practice of
public accountancy.
  [7.]  8. "State" means any state of the United States, the District of
Columbia, Puerto Rico, the U.S. Virgin Islands, and Guam.
  S 2. Section 7406 of the education law, as amended by chapter  651  of
the laws of 2008, is amended to read as follows:
  S 7406. Limited  permits and [temporary] practice [permits] PRIVILEGE.
1. Limited permits. On recommendation of the board, the  department  may
issue  a  limited permit to an applicant of good moral character, who is
the holder of a certificate, license or  degree  in  a  foreign  country
constituting  a  recognized  qualification  for  the performance in such
country of the acts set forth in section  seventy-four  hundred  one  of
this  article,  provided  the  applicant has professional qualifications
that are determined by the board to be significantly comparable  to  the
licensure requirements for certified public accountancy pursuant to this
article, and the applicant resides or has a place for the regular trans-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                      [ ] is old law to be omitted.
                                                           LBD15077-02-9

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action of business within the state, and equal recognition is granted by
the  foreign country concerned to certified public accountants or public
accountants licensed in the United States. Such limited permit shall  be
valid  for a period of two years and may be renewed on recommendation of
the board. Such permit shall authorize the applicant  to  use  only  the
title  or designation under which he or she is generally known in his or
her own country, followed by the name of the country from  which  he  or
she  received his or her certificate, license or degree, notwithstanding
the provisions of subdivision two of section seventy-four hundred  eight
of this article.  THE FEE FOR EACH LIMITED PERMIT AND EACH RENEWAL SHALL
BE ESTABLISHED IN REGULATION BY THE BOARD OF REGENTS.
  2. [Temporary practice permits] PRACTICE PRIVILEGE. a. [On recommenda-
tion of the board, a] A certified public accountant, licensed by another
state  which the board of regents OR ITS DESIGNEE has determined to have
significantly comparable certified public accountant licensure  require-
ments,  or whose individual licensure qualifications are verified by the
department OR ITS DESIGNEE to be significantly comparable to New  York's
requirements,  and in good standing, who intends to perform the services
in subdivisions one and two of section seventy-four hundred one of  this
article  may [temporarily] practice public accountancy in this state, if
the certified public accountant:
  (1) holds a valid license to practice public accountancy in the  other
state, AND
  (2)  practices  public accountancy in another state that is his or her
principal place of business[, and
  (3) obtains from the department a temporary practice permit].
  b. The [temporary] practice [permit] PRIVILEGE allows  such  certified
public  accountant,  who  meets  the requirements of paragraph a of this
subdivision to practice public accountancy in this state.  [Each  tempo-
rary  practice  permit  shall allow the holder to practice in this state
for an aggregate total of one hundred  eighty  days  during  the  twelve
month period beginning on the effective date of the permit.]
  c.  [Applications for the temporary practice permit shall be submitted
to the department through an  electronic  means  as  prescribed  by  the
commissioner.  After  the  department  renders a timely initial determi-
nation that the applicant has submitted  the  information  necessary  to
verify  that  the  requirements  of  paragraph a of this subdivision are
satisfied, applications for temporary practice permits  shall  be  proc-
essed by the department within thirty days. During such thirty day proc-
essing  period,  the  applicant may practice; provided, however, that if
the application is denied the applicant  shall  cease  the  practice  of
public accountancy in the state of New York.] AN INDIVIDUAL WHO HAS BEEN
GRANTED  PRACTICE PRIVILEGES UNDER THIS SECTION WHO, FOR ANY ENTITY WITH
ITS HOME OFFICE IN THIS STATE, PERFORMS ANY OF THE SERVICES IN PARAGRAPH
A, C, OR D OF SUBDIVISION ONE OF SECTION SEVENTY-FOUR HUNDRED  ONE-A  OF
THIS  ARTICLE  MAY ONLY DO SO THROUGH A FIRM WHICH HAS OBTAINED A PERMIT
UNDER SECTION SEVENTY-FOUR HUNDRED EIGHT OF THIS ARTICLE.
  d. Any certified public accountant who practices in this state  pursu-
ant  to  this  section,  and any firm that employs such certified public
accountant to provide such services in New York, consents to all of  the
following  as  a  condition of the exercise of such [temporary] practice
privilege:
  (1) to the personal and subject matter jurisdiction  and  disciplinary
authority  of  the  board  of regents  UNDER SECTIONS SIXTY-FIVE HUNDRED
NINE THROUGH SIXTY-FIVE HUNDRED ELEVEN OF THIS TITLE, AS IF THE PRACTICE

A. 9432                             3

PRIVILEGE IS A "LICENSE," AND AN INDIVIDUAL WITH A PRACTICE PRIVILEGE  A
"LICENSEE," FOR PURPOSES OF THOSE SECTIONS;
  (2) to comply with this article, the rules of the board of regents and
the regulations of the commissioner; and
  (3) to the appointment of the secretary of state or other public offi-
cial  acceptable to the department, in the certified public accountant's
state of licensure or the state in which  the  firm  has  its  principal
place  of  business,  as the certified public accountant or firm's agent
upon whom process may be served in  any  action  or  proceeding  by  the
department against such certified public accountant or firm.
  e.  [No  more  than one temporary practice permit may be issued to any
individual applicant provided that each permit may  be  renewed  by  the
department  up to three times such that an individual shall practice for
no more than four years  within  a  five  year  time  period  under  the
provisions of this section. Such renewals may be granted upon receipt of
written  notice  from  the  permit  holder,  provided that the applicant
remains in good standing and in compliance  with  all  applicable  laws,
rules  and  regulations.] FOR PURPOSES OF THIS SUBDIVISION, THE BOARD OF
REGENTS  MAY  DETERMINE  THAT  NATIONALLY-RECOGNIZED  CERTIFIED   PUBLIC
ACCOUNTANT  LICENSURE  REQUIREMENTS  ARE SIGNIFICANTLY COMPARABLE TO NEW
YORK'S REQUIREMENTS, SUCH THAT A  STATE  DETERMINED  TO  HAVE  LICENSURE
REQUIREMENTS SIGNIFICANTLY COMPARABLE TO THE UNIFORM REQUIREMENTS, OR AN
INDIVIDUAL  WHOSE  LICENSURE QUALIFICATIONS ARE DETERMINED TO BE SIGNIF-
ICANTLY COMPARABLE TO THE UNIFORM  REQUIREMENTS,  MAY  QUALIFY  FOR  THE
PRACTICE PRIVILEGE UNDER PARAGRAPH A OF THIS SUBDIVISION.
  f.  (1)  A  person  who  wishes to practice public accountancy in this
state but does not meet the requirements of paragraph a of this subdivi-
sion is subject to the full licensing and registration  requirements  of
this article.
  (2)  In  the  event  the license from the other state of the certified
public accountant's principal place of business is no longer valid or in
good standing, or that the certified public accountant has had any final
disciplinary action taken [against his or her license] by the  licensing
or  disciplinary authority of any other state concerning the practice of
public accountancy THAT HAS RESULTED IN THE SUSPENSION OR REVOCATION  OF
HIS OR HER LICENSE, the certified public accountant shall cease offering
to perform or performing such services in this state individually and on
behalf of his or her firm.
  (3)  ANY  CERTIFIED  PUBLIC ACCOUNTANT WHO, WITHIN THE LAST TWO YEARS,
EITHER (I) HAS HAD ANY FINAL DISCIPLINARY ACTION TAKEN BY THE  LICENSING
OR  DISCIPLINARY AUTHORITY OF ANY OTHER STATE CONCERNING THE PRACTICE OF
PUBLIC ACCOUNTANCY THAT HAS RESULTED IN SOME SANCTION LESS THAN  SUSPEN-
SION  OR REVOCATION, OR (II) HAS HAD HIS OR HER LICENSE IN ANOTHER STATE
REINSTATED AFTER A SUSPENSION OR REVOCATION OF SAID LICENSE,  MAY  PRAC-
TICE PUBLIC ACCOUNTANCY IN THIS STATE UNDER PARAGRAPH A OF THIS SUBDIVI-
SION ONLY IF SUCH CERTIFIED PUBLIC ACCOUNTANT SUBMITS TO THE DEPARTMENT,
CONTEMPORANEOUSLY WITH COMMENCING PRACTICE IN THE STATE, NOTIFICATION OF
THE COMMENCEMENT OF PRACTICE AND THE DISCIPLINE PREVIOUSLY RECEIVED.
  g.  (1) Notwithstanding subparagraph two of paragraph a of this subdi-
vision or any other inconsistent law or rule to the contrary,  a  certi-
fied  public  accountant  licensed by another state and in good standing
who [obtains a temporary] HAS A practice [permit] PRIVILEGE  under  this
section  and  files  an application for licensure under section seventy-
four hundred four of this article [on or before the expiration  date  of
such  temporary  practice  permit]  may  continue to practice under such
[permit] PRIVILEGE for a period coterminous with the period during which

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his  or  her  application  for  licensure  remains  pending   with   the
department,  INCLUDING  ANY PERIOD AFTER THE CERTIFIED PUBLIC ACCOUNTANT
ESTABLISHES A PRINCIPAL PLACE OF BUSINESS IN NEW YORK WHILE HIS  OR  HER
APPLICATION IS PENDING.
  (2)  Nothing  in this section shall limit the applicability of section
seventy-four hundred seven of this article.
  [h. Fees. The fee for  each  limited  permit  and  temporary  practice
permit  and each renewal shall be established in regulation by the board
of regents.]
  S 3. Section 7406-a of the education law is REPEALED.
  S 4. Subdivision 2 of section 7408 of the education law, as amended by
chapter 651 of the laws of 2008, is amended to read as follows:
  2. No firm shall  use  the  words  "certified  public  accountant"  or
"certified  public  accountants"  or  the  letters  "CPA"  or  "CPAs" in
connection with its name unless:
  A. the sole proprietor of such firm or each partner of  a  partnership
or  limited liability partnership, member of a limited liability company
or shareholder of a professional service corporation engaged within  the
United  States in the practice of public accountancy is in good standing
as a certified public accountant of one or more of  the  states  of  the
United States; OR
  B. THE FIRM IS LICENSED IN SOME STATE, DOES NOT HAVE AN OFFICE IN THIS
STATE,  AND  DOES NOT PERFORM THE SERVICES DESCRIBED IN SUBDIVISIONS ONE
OR THREE OF SECTION SEVENTY-FOUR HUNDRED ONE-A OF  THIS  ARTICLE  FOR  A
CLIENT WHOSE HOME OFFICE IS IN THIS STATE.
  S  5.  Paragraph  a  of subdivision 3 of section 7408 of the education
law, as amended by chapter 651 of the laws of 2008, is amended  to  read
as follows:
  a.  Any  firm WITH AN OFFICE IN THIS STATE that is established for the
business purpose of lawfully engaging in the practice of public  accoun-
tancy  pursuant  to  subdivisions  one  and  two of section seventy-four
hundred one of this article or uses the title "CPA" or "CPA firm" or the
title "PA" or "PA firm" must register with the  department.  A  firm  of
certified  public  accountants  or  public accountants WITH AN OFFICE IN
THIS STATE engaged in the practice of  public  accountancy  pursuant  to
subdivision  three  of section seventy-four hundred one of this article,
but not engaged in the practice of public accountancy pursuant to subdi-
visions one and two of section seventy-four hundred one of this article,
may register with the department under this  subdivision.  ANY  FIRM  OF
CERTIFIED  PUBLIC  ACCOUNTANTS  WITHOUT  AN  OFFICE  IN  THIS STATE THAT
ENGAGES IN THE SERVICES DESCRIBED IN PARAGRAPHS A, C, OR D  OF  SUBDIVI-
SION  ONE  OF  SECTION  SEVENTY-FOUR HUNDRED ONE-A OF THIS ARTICLE FOR A
CLIENT WITH ITS HOME OFFICE IN THIS STATE MUST REGISTER WITH THE DEPART-
MENT. ANY FIRM OF CERTIFIED PUBLIC ACCOUNTANTS WITHOUT AN OFFICE IN THIS
STATE THAT ENGAGES IN THE SERVICES DESCRIBED IN PARAGRAPH B OF  SUBDIVI-
SION ONE, OR SUBDIVISION THREE, OF SECTION SEVENTY-FOUR HUNDRED ONE-A OF
THIS ARTICLE, FOR A CLIENT WITH A HOME OFFICE IN THIS STATE, MUST COMPLY
WITH  SUBDIVISION  TWO  OF THIS SECTION AND SECTION SEVENTY-FOUR HUNDRED
TEN OF THIS ARTICLE AND PERFORM SUCH SERVICES THROUGH AN INDIVIDUAL WITH
PRACTICE  PRIVILEGES  UNDER  SUBDIVISION  TWO  OF  SECTION  SEVENTY-FOUR
HUNDRED  SIX  OF  THIS ARTICLE. ANY FIRM OF CERTIFIED PUBLIC ACCOUNTANTS
WITHOUT AN OFFICE IN THIS STATE THAT ENGAGES IN ANY SERVICE  WITHIN  THE
PRACTICE  OF  PUBLIC  ACCOUNTANCY  NOT  DESCRIBED IN SUBDIVISIONS ONE OR
THREE OF SECTION SEVENTY-FOUR HUNDRED ONE-A OF THIS ARTICLE FOR A CLIENT
WITH A HOME OFFICE IN THIS STATE MUST PERFORM SUCH SERVICES  THROUGH  AN
INDIVIDUAL  WITH  PRACTICE  PRIVILEGES  UNDER SUBDIVISION TWO OF SECTION

A. 9432                             5

SEVENTY-FOUR HUNDRED SIX OF THIS ARTICLE AND BE  AUTHORIZED  TO  PERFORM
SUCH  SERVICES IN THE PRINCIPAL PLACE OF BUSINESS OF SUCH INDIVIDUAL. As
a condition of registration or renewal, the firm shall  affirm  that  it
has  not  violated  the provisions of this article, any other applicable
laws and such other requirements as the department may impose,  consist-
ent  with  this  article, except that the provisions of section seventy-
four hundred ten of this article shall not apply  on  initial  registra-
tion.
  S 6. Subparagraph 1 of paragraph b of subdivision 3 of section 7408 of
the  education  law,  as  amended by chapter 651 of the laws of 2008, is
amended to read as follows:
  (1) At least one partner of a partnership or limited  liability  part-
nership,  member  of  a  limited  liability  company or shareholder of a
professional service corporation or the sole proprietor is  licensed  or
otherwise  authorized  to  practice  under  this  article and his or her
license to practice is not currently suspended, annulled or  revoked  in
any  jurisdiction  and  he  or  she  is regularly engaged in practice on
behalf of the firm within the state OR, IN THE CASE OF A FIRM WITHOUT AN
OFFICE IN THIS STATE REQUIRED TO REGISTER IN THIS STATE,  AN  INDIVIDUAL
WITH  PRACTICE  PRIVILEGES UNDER SUBDIVISION TWO OF SECTION SEVENTY-FOUR
HUNDRED SIX OF THIS ARTICLE;
  S 7. Subdivision 3 of section 7408 of the education law is amended  by
adding a new paragraph h to read as follows:
  H.  AN  INDIVIDUAL LICENSEE OR INDIVIDUAL PRACTICING UNDER SUBDIVISION
TWO OF SECTION SEVENTY-FOUR HUNDRED SIX OF THIS  ARTICLE  WHO  SIGNS  OR
AUTHORIZES  SOMEONE  TO  SIGN  THE  ACCOUNTANT'S REPORT ON THE FINANCIAL
STATEMENTS ON BEHALF OF A FIRM SHALL MEET  THE  COMPETENCY  REQUIREMENTS
SET  OUT  IN THE PROFESSIONAL STANDARDS FOR SUCH SERVICES, AS RECOGNIZED
IN SUBDIVISION ONE OF SECTION SEVENTY-FOUR HUNDRED ONE-A OF  THIS  ARTI-
CLE.
  S 8. This act shall take effect July 1, 2010.