Assembly Bill A4881B

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

                                  4881

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            February 8, 2011
                               ___________

Introduced  by  M.  of  A. GLICK, PAULIN, BING, PEOPLES-STOKES -- Multi-
  Sponsored by -- M. of A.  PHEFFER -- 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08393-02-1
              

A. 4881                             2

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-
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:

A. 4881                             3

  (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
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-

A. 4881                             4

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
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

A. 4881                             5

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
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, 2012.

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

                                 4881--A

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            February 8, 2011
                               ___________

Introduced  by  M.  of  A. GLICK, PAULIN, BING, PEOPLES-STOKES, MORELLE,
  ZEBROWSKI -- Multi-Sponsored by -- M. of A. PHEFFER -- read  once  and
  referred to the Committee on Higher Education -- committee discharged,
  bill  amended,  ordered  reprinted  as amended and recommitted to said
  committee

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.   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]
SUBSTANTIALLY EQUIVALENT to the  licensure  requirements  for  certified
public  accountancy  pursuant to this article, and the applicant resides
or has a place for the regular transaction 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 subdi-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08393-03-1
              

A. 4881--A                          2

vision 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] EXCEPT AS OTHERWISE PROVIDED IN SUBPARAGRAPH TWO OR
THREE OF PARAGRAPH F OF THIS SUBDIVISION, a certified public accountant,
licensed by another state which the board of regents OR ITS DESIGNEE has
determined to have [significantly comparable]  SUBSTANTIALLY  EQUIVALENT
certified  public accountant licensure requirements, or whose individual
licensure qualifications are verified by the department OR ITS  DESIGNEE
to  be [significantly comparable] SUBSTANTIALLY EQUIVALENT to New York's
requirements, and in good standing, who intends to perform  ANY  OF  the
services  in  [subdivisions]  SUBDIVISION  one  [and],  two  OR THREE of
section seventy-four hundred one of this article may [temporarily] prac-
tice public accountancy in this state, if the certified public  account-
ant:
  (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 PERFORMS ANY  OF  THE
SERVICES  IN SUBDIVISION ONE OF SECTION SEVENTY-FOUR HUNDRED ONE OF THIS
ARTICLE MAY ONLY DO SO THROUGH A FIRM WHICH HAS OBTAINED A  REGISTRATION
UNDER SECTION SEVENTY-FOUR HUNDRED EIGHT OF THIS ARTICLE.  SUCH AN INDI-
VIDUAL,  AS  WELL  AS AN INDIVIDUAL WITH A NEW YORK LICENSE WHO DOES NOT
HAVE A PRINCIPAL PLACE OF BUSINESS IN NEW YORK, MAY PROVIDE SERVICES  IN
SUBDIVISION  TWO  OR  THREE  OF SECTION SEVENTY-FOUR HUNDRED ONE OF THIS
ARTICLE THROUGH A FIRM OF CERTIFIED PUBLIC  ACCOUNTANTS  THAT  DOES  NOT
HAVE A REGISTRATION IN THIS STATE BUT THAT HOLDS A VALID LICENSE, REGIS-
TRATION, OR PERMIT IN ANOTHER STATE.
  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. 4881--A                          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 SUBSTANTIALLY EQUIVALENT TO NEW
YORK'S REQUIREMENTS, SUCH THAT AN INDIVIDUAL LICENSED IN A STATE  DETER-
MINED  TO  HAVE  LICENSURE  REQUIREMENTS SUBSTANTIALLY EQUIVALENT TO THE
NATIONALLY-RECOGNIZED CPA LICENSURE REQUIREMENTS, OR AN INDIVIDUAL WHOSE
LICENSURE QUALIFICATIONS ARE DETERMINED TO BE  SUBSTANTIALLY  EQUIVALENT
TO  THE  NATIONALLY-RECOGNIZED  CPA LICENSURE REQUIREMENTS, MAY PRACTICE
UNDER THE PRACTICE PRIVILEGE CONTAINED IN PARAGRAPH A OF  THIS  SUBDIVI-
SION.
  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 SEVEN YEARS,
IMMEDIATELY PRECEDING THE DATE ON WHICH HE OR SHE WISHES TO BEGIN  PRAC-
TICE  IN  NEW  YORK,  (I) HAS BEEN THE SUBJECT OF ANY FINAL DISCIPLINARY
ACTION TAKEN AGAINST HIM OR HER BY THE LICENSING OR DISCIPLINARY AUTHOR-
ITY OF ANY OTHER JURISDICTION WITH RESPECT TO ANY  PROFESSIONAL  LICENSE
OR HAS ANY CHARGES OF PROFESSIONAL MISCONDUCT PENDING AGAINST HIM OR HER
IN ANY OTHER JURISDICTION, OR (II) HAS HAD HIS OR HER LICENSE IN ANOTHER
JURISDICTION  REINSTATED  AFTER  A  SUSPENSION  OR  REVOCATION  OF  SAID
LICENSE, OR (III) HAS BEEN DENIED ISSUANCE OR RENEWAL OF A  PROFESSIONAL
LICENSE  OR  CERTIFICATE  IN ANY OTHER JURISDICTION FOR ANY REASON OTHER
THAN AN INADVERTENT ADMINISTRATIVE ERROR, OR (IV) HAS BEEN CONVICTED  OF
A  CRIME  OR IS SUBJECT TO PENDING CRIMINAL CHARGES IN ANY JURISDICTION,
SHALL SO NOTIFY THE DEPARTMENT, ON A FORM PRESCRIBED BY THE  DEPARTMENT,
AND  SHALL NOT PRACTICE PUBLIC ACCOUNTANCY IN THIS STATE UNDER PARAGRAPH
A OF THIS SUBDIVISION UNTIL HE OR SHE HAS RECEIVED FROM  THE  DEPARTMENT
WRITTEN PERMISSION TO DO SO. IN DETERMINING WHETHER THE CERTIFIED PUBLIC

A. 4881--A                          4

ACCOUNTANT  SHALL  BE  ALLOWED TO PRACTICE IN THIS STATE, THE DEPARTMENT
SHALL FOLLOW THE PROCEDURE TO DETERMINE WHETHER AN APPLICANT FOR  LICEN-
SURE  IS  OF  GOOD MORAL CHARACTER. ANYONE FAILING TO PROVIDE THE NOTICE
REQUIRED BY THIS PARAGRAPH SHALL BE DEEMED TO BE PRACTICING IN VIOLATION
OF SECTION SIXTY-FIVE HUNDRED TWELVE OF THIS TITLE.
  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] MEETS THE practice [permit] PRIVILEGE REQUIRE-
MENTS 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 prac-
tice under such [permit] PRIVILEGE for a  period  coterminous  with  the
period during which 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 2. Section 7406-a of the education law is REPEALED.
  S 3. 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  DOES NOT HAVE AN OFFICE IN THIS STATE, HOLDS A LICENSE,
REGISTRATION, OR PERMIT AS A FIRM OF  CERTIFIED  PUBLIC  ACCOUNTANTS  IN
ANOTHER  STATE  AND  DOES  NOT  PERFORM ANY OF THE SERVICES DESCRIBED IN
SUBDIVISION ONE OF SECTION SEVENTY-FOUR HUNDRED ONE OF THIS ARTICLE.
  S 4. 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. (1) Any firm that  is  established  for  the  business  purpose  of
lawfully  engaging  in  the  practice  of public accountancy pursuant to
[subdivisions] SUBDIVISION one [and two] of section seventy-four hundred
one of this article [or] MUST REGISTER WITH THE DEPARTMENT.
  (2) ANY FIRM WITH AN OFFICE IN THIS STATE THAT uses the title "CPA" or
"CPA firm" or the title "PA" or "PA firm" must register with the depart-
ment.
  (3) A firm of  certified  public  accountants  or  public  accountants
engaged  in  the  practice of public accountancy pursuant to subdivision
TWO OR three of section seventy-four hundred one of  this  article,  but
not  engaged in the practice of public accountancy pursuant to [subdivi-
sions] SUBDIVISION one [and two] of section seventy-four hundred one  of
this article, may register with the department under this subdivision.
  (4)  As  a condition of registration or renewal, the firm shall affirm
that it has not violated the  provisions  of  this  article,  any  other

A. 4881--A                          5

applicable  laws  and  such  other  requirements  as  the department may
impose, consistent with this article,  except  that  the  provisions  of
section  seventy-four  hundred  ten  of  this article shall not apply on
initial registration.
  S 5. 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 THAT HOLDS
A LICENSE, REGISTRATION,  OR  PERMIT  AS  A  FIRM  OF  CERTIFIED  PUBLIC
ACCOUNTANTS  IN ANOTHER STATE AND IS REQUIRED TO REGISTER IN THIS STATE,
AN INDIVIDUAL WITH PRACTICE PRIVILEGES UNDER SUBDIVISION TWO OF  SECTION
SEVENTY-FOUR HUNDRED SIX OF THIS ARTICLE;
  S  6. 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, AND AS SET OUT IN THE RULES OF THE BOARD OF REGENTS.
  S 7. This act shall take effect on the ninetieth day  after  it  shall
have become a law.