A01226
STATE OF NEW YORK
________________________________________________________________________
1226
2003-2004 Regular Sessions
IN ASSEMBLY
January 16, 2003
___________
Introduced by M. of A. BRODSKY -- read once and referred to the Commit-
tee on Higher Education
AN ACT to amend the education law, in relation to the registration of
accounting firms
The People of the State of New York, represented in Senate and Assem-
bly, do enact as follows:
1 Section 1. Section 7408 of the education law, as added by chapter 987
2 of the laws of 1971, the opening paragraph of subdivision 1 and subdivi-
3 sion 2 as amended by chapter 994 of the laws of 1971 and paragraph e of
4 subdivision 1 as amended by chapter 62 of the laws of 1989, is amended
5 to read as follows:
6 § 7408. [Special provisions] Registration of accounting firms. 1.
7 Nothing contained in this article shall be deemed to prohibit a single
8 certified public accountant or public accountant, or two or more certi-
9 fied public accountants, or two or more public accountants, or any
10 combination thereof[,] from forming a [partnership] firm; provided[,];
11 however, that no [partnership] firm shall use the words "certified
12 public accountants" or the letters ["C.P.A.'s"] "C.P.A.s" in connection
13 with its name unless such single certified public accountant, each part-
14 ner of [such] any partnership, [resident or engaged within the United
15 States] each shareholder of a professional service corporation, or each
16 member of a professional service limited liability company in practice
17 is in good standing as a certified public accountant of one or more of
18 the states or political subdivisions of the United States[,] and each
19 [partner thereof] such person resident or engaged in practice within the
20 state is licensed under this article.
21 a. A registration shall be issued to a [partnership] firm upon payment
22 of the fee prescribed by the commissioner upon application showing that:
23 (1) At least one owner, partner, shareholder, or member of such [part-
24 nership] firm is licensed under this article and his or her license to
25 practice is not currently suspended, annulled, or revoked in any juris-
26 diction and he or she is regularly engaged in practice on behalf of the
27 [partnership] firm within the state; and
28 (2) [The partnership consists of at least two present members; and
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02365-02-3
A. 1226 2
1 (3)] The [partnership] firm contains at least as many present owners,
2 partners, shareholders, or members as the total number of names in the
3 firm name[,] or, where the word "company" or abbreviation "co." is used,
4 the number of present owners, partners, shareholders, or members shall
5 be greater than the number of names in the firm name.
6 b. Such registration may be revoked after a hearing conducted in
7 accordance with the provisions of section sixty-five hundred ten of this
8 title upon proof:
9 (1) That the registration was obtained by either misrepresentation or
10 suppression of any material fact;
11 (2) That the license or authorization to practice of any owner, part-
12 ner, shareholder, or member is suspended, annulled, or revoked in any
13 jurisdiction;
14 (3) That any owner, partner, shareholder, or member in such a [part-
15 nership] firm is or has been engaged in the practice of public accoun-
16 tancy in this state who is not licensed in this state; [or]
17 (4) That the [partnership] firm failed to file the written notifica-
18 tion required pursuant to paragraph d of this subdivision [of this
19 section.]; or
20 (5) The firm is in violation of subdivision three of this section.
21 c. Personal service [on any general partner] of a notice of hearing to
22 revoke a [partnership registered] firm registration hereunder shall be
23 [deemed service on the partnership] made in accordance with law.
24 d. A [partnership] firm registered to practice pursuant to this
25 section shall file with the department on or before July first of each
26 year, written notification of:
27 (1) Any admission of a new owner, partner, shareholder, or member,
28 (2) Any retirement or death of [a] an owner, partner, shareholder, or
29 member,
30 (3) Any termination or dissolution of [partnership] the firm, or
31 (4) Any occurrence of any event or events which would eliminate as to
32 such [partnership] firm conformity with the applicable requirements of
33 this section.
34 e. [Partnerships] Firms shall register triennially and pay a fee of
35 fifty dollars.
36 2. Any person shall be guilty of a class A misdemeanor who shall use,
37 in connection with the practice of public accountancy, or in any manner
38 tending to imply that he or she is an independent accountant or auditor,
39 the designations "chartered accountant", "certified accountant", "expert
40 accountant", "certified tax accountant", "tax accountant", "enrolled
41 accountant", "enrolled public accountant", "registered accountant",
42 "licensed accountant", "incorporated accountant", "registered public
43 accountant", "licensed public accountant", or any abbreviation thereof,
44 or the letters "C.A.", "E.A.", "C.T.A.", "T.A.", "E.P.A.", "R.A.",
45 "L.A.", "I.A.", "P.A.", "R.P.A.", or, "L.P.A.", except as provided else-
46 where in this article, or any other designation tending to imply that he
47 or she has expert knowledge in accounting or auditing.
48 3. It is unlawful for any accounting firm, as described in subdivision
49 one of this section, that performs audit and attest services for a
50 client, to perform or offer to perform any other professional service
51 for such client. The commissioner may define in rules and regulations
52 the term "any other professional service," as used in this subdivision.
53 § 2. This act shall take effect on the first of April next succeeding
54 the date on which it shall have become a law.