1. The Laws of New York
  2. Consolidated Laws
  3. Education
  4. Title 8: The Professions
  5. Article 149: Public Accountancy


Section 7406 Limited permits and practice privilege

Education (EDN)

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 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 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. Practice privilege. a. 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 has determined to have substantially equivalent certified public accountant licensure requirements, or whose individual licensure qualifications are verified by the department to be substantially equivalent to New York's requirements, and in good standing, who intends to perform any of the services in subdivision one, two or three of section seventy-four hundred one of this article may 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.

  b. The practice privilege allows such certified public accountant, who meets the requirements of paragraph a of this subdivision to practice public accountancy in this state.

  c. An individual who has been granted practice privileges under this section who performs any of the services in subdivision one or two 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 individual, 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 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, registration, or permit in another state.

  d. Any certified public accountant who practices in this state pursuant 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 practice privilege:

  (1) to the personal and subject matter jurisdiction and disciplinary authority of the board of regents as if the practice privilege is a license, and an individual with a practice privilege is a licensee;

  (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 official 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. 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 determined 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 pursuant to the requirements contained in 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 subdivision 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 by the licensing or disciplinary authority of any other state concerning the practice of public accountancy that has resulted in (i) the suspension or revocation of his or her license, or (ii) other disciplinary action against his or her license that arises from (a) gross negligence, recklessness or intentional wrongdoing relating to the practice of public accountancy, (b) fraud or misappropriation of funds relating to the practice of public accountancy, or (c) preparation, publication, or dissemination of false, fraudulent, or materially incomplete or misleading financial statements, reports or information relating to the practice of public accountancy, 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, until and unless such certified public accountant receives written permission from the department to resume the practice of public accountancy in this state pursuant to subparagraph three of this paragraph.

  (3) Any certified public accountant who, within the last seven years, immediately preceding the date on which he or she wishes to practice in New York, (i) has been the subject of any final disciplinary action taken against him or her by the licensing or disciplinary authority 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 accountant shall be allowed to practice in this state, the department shall follow the procedure to determine whether an applicant for licensure is of good moral character. Anyone failing to provide the notice required by this paragraph shall be subject to the personal and subject matter jurisdiction and disciplinary authority of the board of regents as if the practice privilege is a license, and an individual with a practice privilege is a licensee, and may 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 subdivision or any other inconsistent law or rule to the contrary, a certified public accountant licensed by another state and in good standing who otherwise meets the practice privilege requirements under this section and files an application for licensure under section seventy-four hundred four of this article may continue to practice under such 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.