assembly Bill A1938

2021-2022 Legislative Session

Relates to certified public accountants

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Sponsored By

Current 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 (2)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 05, 2022 referred to higher education
Jan 13, 2021 referred to higher education

Co-Sponsors

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Multi-Sponsors

A1938 (ACTIVE) - Details

See Senate Version of this Bill:
S4221
Current Committee:
Assembly Higher Education
Law Section:
Business Corporation Law
Laws Affected:
Amd §§1503, 1507, 1508, 1509, 1511, 1514 & 1525, BC L; amd §§121-1500, 121-1502 & 121-101, Partn L; amd §§1207 & 1301, Lim Lil L
Versions Introduced in Other Legislative Sessions:
2013-2014: A9771, S4596
2015-2016: A5964, S4672
2017-2018: A3046, A8973, S3851
2019-2020: A2919, S3842

A1938 (ACTIVE) - Summary

Relates to certified public accountants; requires that a majority of the ownership of a professional service corporation formed to lawfully engage in the practice of public accountancy are individuals licensed to practice public accountancy in some state; enacts similar provisions for partnerships and LLCs.

A1938 (ACTIVE) - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1938
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 13, 2021
                                ___________
 
 Introduced  by  M.  of A. PEOPLES-STOKES, TAYLOR, MAGNARELLI, BENEDETTO,
   DICKENS, ENGLEBRIGHT, J. RIVERA, JEAN-PIERRE,  DE LA ROSA,  SEAWRIGHT,
   MORINELLO,  COOK,  L. ROSENTHAL,  PERRY,  LUPARDO, GOTTFRIED, BRONSON,
   ABBATE, DILAN, RICHARDSON, PHEFFER AMATO, DINOWITZ,  RODRIGUEZ,  PRET-
   LOW,  NIOU,  ROZIC,  D. ROSENTHAL,  JOYNER, HUNTER, PICHARDO, SOLAGES,
   HEVESI, HYNDMAN, GALEF, GUNTHER, STIRPE, WOERNER, QUART, CUSICK, FAHY,
   SANTABARBARA, BICHOTTE HERMELYN, WEPRIN, LAVINE, CYMBROWITZ,  WALCZYK,
   VANEL,  ZEBROWSKI, WALLACE, PAULIN, EICHENSTEIN, CARROLL, FALL, REYES,
   WALKER, FERNANDEZ, SAYEGH, McMAHON,  BARNWELL,  BARRETT,  BUTTENSCHON,
   COLTON,  BARRON,  BRAUNSTEIN,  DARLING, STERN, CAHILL, GRIFFIN, RAMOS,
   JONES -- Multi-Sponsored by -- M. of A. DAVILA, J. M. GIGLIO, GOODELL,
   M. MILLER, THIELE -- read once and referred to the Committee on Higher
   Education
 
 AN ACT to amend 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 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, AND VOTING  RIGHTS  HELD  BY  THE
 FIRM'S  OWNERS,  BELONGS  TO  INDIVIDUALS  LICENSED  TO  PRACTICE PUBLIC
 ACCOUNTANCY IN SOME STATE, AND (2) THAT ALL SHAREHOLDERS  OF  A  PROFES-
 SIONAL  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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.