assembly Bill A9771B

2013-2014 Legislative Session

Relates to certified public accountants

download bill text pdf

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Archive: Last Bill Status - In Assembly Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

view actions (5)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 11, 2014 print number 9771b
Jun 11, 2014 amend and recommit to higher education
Jun 09, 2014 print number 9771a
Jun 09, 2014 amend and recommit to higher education
May 22, 2014 referred to higher education

Co-Sponsors

A9771 - Details

See Senate Version of this Bill:
S4596
Current Committee:
Assembly Higher Education
Law Section:
Education Law
Laws Affected:
Amd §7408, Ed L; amd §§1503, 1507, 1508, 1509, 1511, 1512, 1514 & 1525, BC L; amd §§2, 121-1500, 121-1502 & 121-101, Partn L; amd §§1207 & 1301, Lim Lil L
Versions Introduced in Other Legislative Sessions:
2015-2016: A5964, S4672
2017-2018: A3046, A8973, S3851
2019-2020: A2919, S3842
2021-2022: A1938, S4221

A9771 - Summary

Relates to certified public accountants.

A9771 - Bill Text download pdf

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

                                  9771

                          I N  A S S E M B L Y

                              May 22, 2014
                               ___________

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

AN ACT to amend the education law, the  business  corporation  law,  the
  partnership  law and the limited liability company law, in relation to
  certified public accountants

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

  Section  1.  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.  A.  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 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.  NOTWITHSTANDING ANY OTHER
PROVISIONS OF LAW, AN APPLICANT FOR INITIAL ISSUANCE  OR  RENEWAL  OF  A
FIRM PERMIT TO PRACTICE UNDER THIS SECTION SHALL BE REQUIRED TO SHOW (1)
THAT  A SIMPLE MAJORITY OF THE OWNERSHIP OF THE FIRM, IN TERMS OF FINAN-
CIAL  INTERESTS,  INCLUDING  OWNERSHIP-BASED  COMPENSATION,  AND  VOTING
RIGHTS  HELD  BY  THE  FIRM'S OWNERS, BELONGS TO INDIVIDUALS LICENSED TO
PRACTICE PUBLIC ACCOUNTANCY IN SOME STATE, AND (2) THAT ALL PARTNERS  OF
A  PARTNERSHIP OR LIMITED LIABILITY PARTNERSHIP, OR MEMBERS OF A LIMITED
LIABILITY COMPANY, OR SHAREHOLDERS OF A PROFESSIONAL SERVICE CORPORATION
WHOSE PRINCIPAL PLACE OF BUSINESS IS IN THIS STATE, AND WHO ARE  ENGAGED
IN  THE  PRACTICE  OF  PUBLIC  ACCOUNTANCY  IN  THIS STATE, HOLD A VALID
LICENSE ISSUED UNDER SECTION SEVENTY-FOUR HUNDRED FOUR OF  THIS  ARTICLE
OR  ARE  PUBLIC  ACCOUNTANTS LICENSED UNDER SECTION SEVENTY-FOUR HUNDRED
FIVE OF THIS ARTICLE. ALTHOUGH FIRMS MAY  INCLUDE  NON-LICENSEE  OWNERS,
THE FIRM AND ITS OWNERS MUST COMPLY WITH RULES PROMULGATED BY THE BOARD.
NOTWITHSTANDING  THE FOREGOING, A FIRM REGISTERED UNDER THIS SECTION MAY
NOT HAVE NON-LICENSEE OWNERS IF  THE  FIRM'S  NAME  INCLUDES  THE  WORDS

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

Co-Sponsors

A9771A - Details

See Senate Version of this Bill:
S4596
Current Committee:
Assembly Higher Education
Law Section:
Education Law
Laws Affected:
Amd §7408, Ed L; amd §§1503, 1507, 1508, 1509, 1511, 1512, 1514 & 1525, BC L; amd §§2, 121-1500, 121-1502 & 121-101, Partn L; amd §§1207 & 1301, Lim Lil L
Versions Introduced in Other Legislative Sessions:
2015-2016: A5964, S4672
2017-2018: A3046, A8973, S3851
2019-2020: A2919, S3842
2021-2022: A1938, S4221

A9771A - Summary

Relates to certified public accountants.

A9771A - Bill Text download pdf

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

                                 9771--A

                          I N  A S S E M B L Y

                              May 22, 2014
                               ___________

Introduced  by  M.  of  A.  ORTIZ, FAHY -- 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, the business corporation law, the
  partnership law and the limited liability company law, in relation  to
  certified public accountants

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

  Section 1. Section 7408 of the education law is amended  by  adding  a
new subdivision 6 to read as follows:
  6. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, ANY FIRM ESTABLISHED TO
LAWFULLY  ENGAGE  IN THE PRACTICE OF PUBLIC ACCOUNTANCY AS DEFINED UNDER
ARTICLE FIFTEEN OF  THE  BUSINESS  CORPORATION  LAW,  ARTICLES  ONE  AND
EIGHT-B  OF  THE PARTNERSHIP LAW, OR ARTICLES TWELVE AND THIRTEEN OF THE
LIMITED LIABILITY COMPANY LAW SHALL BE  DEEMED  AUTHORIZED  TO  REGISTER
PURSUANT TO THIS SECTION.
  S 2. Section 1503 of the business corporation law is amended by adding
a new paragraph (h) to read as follows:
  (H)  ANY FIRM ESTABLISHED FOR THE BUSINESS PURPOSE OF INCORPORATING AS
A PROFESSIONAL SERVICE CORPORATION FORMED  TO  LAWFULLY  ENGAGE  IN  THE
PRACTICE OF PUBLIC ACCOUNTANCY, AS SUCH PRACTICE IS RESPECTIVELY DEFINED
UNDER  ARTICLE  ONE  HUNDRED  FORTY-NINE  OF  THE EDUCATION LAW SHALL BE
REQUIRED TO SHOW (1) THAT A SIMPLE MAJORITY  OF  THE  OWNERSHIP  OF  THE
FIRM, IN TERMS OF FINANCIAL INTERESTS, INCLUDING OWNERSHIP-BASED COMPEN-
SATION, AND VOTING RIGHTS HELD BY THE FIRM'S OWNERS, BELONGS TO INDIVID-
UALS LICENSED TO PRACTICE PUBLIC ACCOUNTANCY IN SOME STATE, AND (2) THAT
ALL  SHAREHOLDERS  OF A PROFESSIONAL SERVICE CORPORATION WHOSE PRINCIPAL
PLACE OF BUSINESS IS IN THIS STATE, AND WHO ARE ENGAGED IN THE  PRACTICE
OF  PUBLIC  ACCOUNTANCY IN THIS STATE, HOLD A VALID LICENSE ISSUED UNDER
SECTION SEVENTY-FOUR HUNDRED FOUR OF THE EDUCATION  LAW  OR  ARE  PUBLIC
ACCOUNTANTS  LICENSED  UNDER  SECTION  SEVENTY-FOUR  HUNDRED FIVE OF THE
EDUCATION LAW. ALTHOUGH FIRMS MAY INCLUDE NON-LICENSEE OWNERS, THE  FIRM
AND  ITS  OWNERS  MUST  COMPLY  WITH  RULES  PROMULGATED  BY  THE BOARD.
NOTWITHSTANDING THE PROVISIONS OF THIS PARAGRAPH,  A  FIRM  INCORPORATED

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

Co-Sponsors

A9771B (ACTIVE) - Details

See Senate Version of this Bill:
S4596
Current Committee:
Assembly Higher Education
Law Section:
Education Law
Laws Affected:
Amd §7408, Ed L; amd §§1503, 1507, 1508, 1509, 1511, 1512, 1514 & 1525, BC L; amd §§2, 121-1500, 121-1502 & 121-101, Partn L; amd §§1207 & 1301, Lim Lil L
Versions Introduced in Other Legislative Sessions:
2015-2016: A5964, S4672
2017-2018: A3046, A8973, S3851
2019-2020: A2919, S3842
2021-2022: A1938, S4221

A9771B (ACTIVE) - Summary

Relates to certified public accountants.

A9771B (ACTIVE) - Bill Text download pdf

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

                                 9771--B

                          I N  A S S E M B L Y

                              May 22, 2014
                               ___________

Introduced  by  M.  of  A.  ORTIZ, FAHY -- read once and referred to the
  Committee on Higher Education -- committee discharged,  bill  amended,
  ordered  reprinted  as  amended  and  recommitted to said committee --
  again reported from said committee with amendments, ordered  reprinted
  as amended and recommitted to said committee

AN  ACT  to  amend  the education law, the business corporation law, the
  partnership law and the limited liability company law, in relation  to
  certified public accountants

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

  Section 1. Section 7408 of the education law is amended  by  adding  a
new subdivision 6 to read as follows:
  6. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, ANY FIRM ESTABLISHED TO
LAWFULLY  ENGAGE IN THE PRACTICE OF PUBLIC ACCOUNTANCY PURSUANT TO ARTI-
CLE FIFTEEN OF THE BUSINESS CORPORATION LAW, ARTICLES ONE AND EIGHT-B OF
THE PARTNERSHIP LAW, OR ARTICLES TWELVE  AND  THIRTEEN  OF  THE  LIMITED
LIABILITY COMPANY LAW SHALL BE DEEMED AUTHORIZED TO REGISTER PURSUANT TO
THIS SECTION.
  S 2. Section 1503 of the business corporation law is amended by adding
a new paragraph (h) to read as follows:
  (H)  ANY FIRM ESTABLISHED FOR THE BUSINESS PURPOSE OF INCORPORATING AS
A PROFESSIONAL SERVICE CORPORATION FORMED  TO  LAWFULLY  ENGAGE  IN  THE
PRACTICE OF PUBLIC ACCOUNTANCY, AS SUCH PRACTICE IS RESPECTIVELY DEFINED
UNDER  ARTICLE  ONE  HUNDRED  FORTY-NINE  OF  THE EDUCATION LAW SHALL BE
REQUIRED TO SHOW (1) THAT A SIMPLE MAJORITY  OF  THE  OWNERSHIP  OF  THE
FIRM, IN TERMS OF FINANCIAL INTERESTS, INCLUDING OWNERSHIP-BASED COMPEN-
SATION, AND VOTING RIGHTS HELD BY THE FIRM'S OWNERS, BELONGS TO INDIVID-
UALS LICENSED TO PRACTICE PUBLIC ACCOUNTANCY IN SOME STATE, AND (2) THAT
ALL  SHAREHOLDERS  OF A PROFESSIONAL SERVICE CORPORATION WHOSE PRINCIPAL
PLACE OF BUSINESS IS IN THIS STATE, AND WHO ARE ENGAGED IN THE  PRACTICE
OF  PUBLIC  ACCOUNTANCY IN THIS STATE, HOLD A VALID LICENSE ISSUED UNDER
SECTION SEVENTY-FOUR HUNDRED FOUR OF THE EDUCATION  LAW  OR  ARE  PUBLIC
ACCOUNTANTS  LICENSED  UNDER  SECTION  SEVENTY-FOUR  HUNDRED FIVE OF THE
EDUCATION LAW. ALTHOUGH FIRMS MAY INCLUDE NON-LICENSEE OWNERS, THE  FIRM

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