Senate Bill S2473A

Signed By Governor
2023-2024 Legislative Session

Relates to certified public accountants

download bill text pdf

Sponsored By

Current Bill Status - Signed by Governor


  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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Bill Amendments

2023-S2473 - Details

See Assembly Version of this Bill:
A4189
Law Section:
Business Corporation Law
Laws Affected:
Amd §§1503, 1507, 1508, 1509, 1511, 1514 & 1525, BC L; amd §§121-1500 & 121-1502, Partn L; amd §§1207 & 1301, Lim Lil L
Versions Introduced in Other Legislative Sessions:
2013-2014: S4596
2015-2016: S4672
2017-2018: S3851
2019-2020: S3842
2021-2022: S4221

2023-S2473 - 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 as a firm are individuals licensed to practice public accountancy in some state; enacts similar provisions for partnerships and LLCs.

2023-S2473 - Sponsor Memo

2023-S2473 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2473
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 20, 2023
                                ___________
 
 Introduced  by Sen. STAVISKY -- read twice and ordered printed, and when
   printed to be committed 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
 FOUR  OF  THE  EDUCATION LAW. FOR PURPOSES OF THIS PARAGRAPH, "FINANCIAL
 INTEREST" MEANS CAPITAL STOCK, CAPITAL ACCOUNTS, CAPITAL  CONTRIBUTIONS,
 CAPITAL  INTEREST,  OR  INTEREST IN UNDISTRIBUTED EARNINGS OF A BUSINESS
 ENTITY.  ALTHOUGH FIRMS MAY INCLUDE NON-LICENSEE OWNERS,  THE  FIRM  AND
 ITS  OWNERS  MUST  COMPLY  WITH  RULES PROMULGATED BY THE STATE BOARD OF
 REGENTS.  NOTWITHSTANDING THE FOREGOING, A FIRM INCORPORATED UNDER  THIS
 SECTION MAY NOT HAVE NON-LICENSEE OWNERS IF THE FIRM'S NAME INCLUDES THE
 WORDS  "CERTIFIED PUBLIC ACCOUNTANT," OR "CERTIFIED PUBLIC ACCOUNTANTS,"
 OR THE ABBREVIATIONS "CPA" OR "CPAS".  EACH NON-LICENSEE OWNER OF A FIRM
 THAT IS INCORPORATED UNDER THIS SECTION SHALL BE A  NATURAL  PERSON  WHO
 ACTIVELY  PARTICIPATES  IN  THE  BUSINESS  OF THE FIRM OR ITS AFFILIATED
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00057-01-3
              

co-Sponsors

2023-S2473A (ACTIVE) - Details

See Assembly Version of this Bill:
A4189
Law Section:
Business Corporation Law
Laws Affected:
Amd §§1503, 1507, 1508, 1509, 1511, 1514 & 1525, BC L; amd §§121-1500 & 121-1502, Partn L; amd §§1207 & 1301, Lim Lil L
Versions Introduced in Other Legislative Sessions:
2013-2014: S4596
2015-2016: S4672
2017-2018: S3851
2019-2020: S3842
2021-2022: S4221

2023-S2473A (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 as a firm are individuals licensed to practice public accountancy in some state; enacts similar provisions for partnerships and LLCs.

2023-S2473A (ACTIVE) - Sponsor Memo

2023-S2473A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2473--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 20, 2023
                                ___________
 
 Introduced  by Sen. STAVISKY -- read twice and ordered printed, and when
   printed to be committed  to  the  Committee  on  Higher  Education  --
   committee  discharged,  bill amended, ordered reprinted as amended and
   recommitted to said committee
 
 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 DEFINED UNDER  ARTI-
 CLE  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 PROFESSIONAL SERVICE CORPO-
 RATION 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.  FOR  PURPOSES  OF  THIS PARAGRAPH, "FINANCIAL INTEREST"
 MEANS CAPITAL STOCK, CAPITAL ACCOUNTS,  CAPITAL  CONTRIBUTIONS,  CAPITAL
 INTEREST,  OR  INTEREST  IN UNDISTRIBUTED EARNINGS OF A BUSINESS ENTITY.
 ALTHOUGH FIRMS REGISTERED WITH  THE  EDUCATION  DEPARTMENT  MAY  INCLUDE
 NON-LICENSEE  OWNERS,  A REGISTERED FIRM AND ITS OWNERS MUST COMPLY WITH
 RULES PROMULGATED BY THE STATE BOARD OF REGENTS.    NOTWITHSTANDING  THE
 FOREGOING,  A  FIRM INCORPORATED UNDER THIS SECTION MAY NOT HAVE NON-LI-
 CENSEE OWNERS IF THE FIRM'S NAME INCLUDES THE  WORDS  "CERTIFIED  PUBLIC
 ACCOUNTANT,"  OR  "CERTIFIED  PUBLIC  ACCOUNTANTS," OR THE ABBREVIATIONS
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00057-03-3
              

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