A08286
STATE OF NEW YORK
________________________________________________________________________
8286
2003-2004 Regular Sessions
IN ASSEMBLY
April 25, 2003
___________
Introduced by COMMITTEE ON RULES -- (at request of M. of A. Canestrari)
-- (at request of the State Education Department) -- read once and
referred to the Committee on Higher Education
AN ACT to amend the education law, the state finance law, the limited
liability company law and the partnership law, in relation to the
practice of public accountancy
The People of the State of New York, represented in Senate and Assem-
bly, do enact as follows:
1 Section 1. Section 7401 of the education law, as amended by chapter
2 994 of the laws of 1971, is amended to read as follows:
3 § 7401. Definition of practice of public accountancy. 1. The practice
4 of the profession of public accountancy is defined as [holding one's
5 self out to the public, in consideration of compensation received or to
6 be received, offering to perform or performing for other persons,
7 services which involve signing, delivering or issuing or causing to be
8 signed, delivered or issued any financial, accounting or related state-
9 ment or any opinion on, report on, or certificate to such statement if,
10 by reason of the signature, or the stationery or wording employed, or
11 otherwise, it is indicated or implied that the practitioner has acted or
12 is acting, in relation to said financial, accounting or related state-
13 ment, or reporting as an independent accountant or auditor or as an
14 individual having or purporting to have expert knowledge in accounting
15 or auditing]:
16 a. offering to perform or performing attest and compilation services,
17 as defined in section seventy-four hundred one-a of this article;
18 b. as an incident to the services described in paragraph a of this
19 subdivision, rendering professional services to clients, including
20 employers, for compensation in any or all matters relating to accounting
21 concepts and to the recording, presentation, or certification of finan-
22 cial information or data; or
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13772-01-3
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1 c. offering to perform or performing for other persons one or more
2 types of services, exclusive of services within paragraphs a and b of
3 this subdivision, involving the use of professional skills or competen-
4 cies of the licensed accountant, while holding one's self out as a
5 certified public accountant or public accountant or using a "CPA" or
6 "PA" designation, including professional services rendered to one's
7 employer.
8 2. Any person not licensed pursuant to this article, and any other
9 legal entity not registered pursuant to this article, may offer the
10 services set forth in paragraph c of subdivision one of this section if
11 the person or other legal entity does not hold itself out as a certified
12 public accountant or public accountant or a firm authorized to practice
13 public accountancy under this article, or otherwise solicit or advertise
14 for clients using a "CPA" or "PA" designation or other similar desig-
15 nation in violation of subdivision two of section seventy-four hundred
16 eight of this article.
17 § 2. The education law is amended by adding a new section 7401-a to
18 read as follows:
19 § 7401-a. Definitions. As used in this article:
20 1. "Attest" means providing the following public accountancy services
21 which all require the independence of licensees:
22 a. any audit to be performed in accordance with generally accepted
23 auditing standards or other similar standards, developed by a recognized
24 international or national professional accountancy organization, that
25 are acceptable to the department in accordance with the commissioner's
26 regulations;
27 b. any review of a financial statement to be performed in accordance
28 with standards, developed by a recognized international or national
29 professional accountancy organization, that are acceptable to the
30 department in accordance with the commissioner's regulations; or
31 c. any attestation engagement to be performed in accordance with
32 attestation standards developed by a recognized international or
33 national professional accountancy organization, that are acceptable to
34 the department in accordance with the commissioner's regulations.
35 2. "Certified public accountant" means any person who has received a
36 license from the department as a certified public accountant for the
37 practice of public accountancy.
38 3. "Compilation" means providing a service that presents, in the form
39 of financial statements, information that is the representation of the
40 management or owners of the client without undertaking to express any
41 assurance of the accuracy of the information in the statements, to be
42 performed in accordance with standards, developed by a recognized inter-
43 national or national professional accountancy organization, that are
44 acceptable to the department in accordance with the commissioner's regu-
45 lations.
46 4. "Firm" means a sole proprietorship, a professional service corpo-
47 ration, a partnership, a professional service limited liability company,
48 a foreign professional service limited liability company, a professional
49 service limited liability partnership, a foreign professional service
50 limited liability partnership, or any other form of organization that is
51 lawfully engaged in the practice of public accountancy.
52 5. "Public accountant" means any person who has received a license
53 from the department for the practice of public accountancy.
54 § 3. Section 7402 of the education law, as amended by chapter 994 of
55 the laws of 1971, is amended to read as follows:
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1 § 7402. Practice of public accountancy and use of title "certified
2 public accountant" or "public accountant". 1. Only a person licensed or
3 otherwise authorized to practice under this article shall practice
4 public accountancy and use the title "certified public accountant" or
5 the designation ["C.P.A."] "CPA" or "public accountant" or any other
6 derivative or designation provided in section seventy-four hundred eight
7 of this article.
8 2. Except as otherwise specifically authorized pursuant to the
9 provisions of subdivision two of section seventy-four hundred one of
10 this article, only a certified public accountant or public accountant
11 shall engage in the practice of public accountancy as defined in para-
12 graphs a and b of subdivision one of section seventy-four hundred one of
13 this article, provided that such person may engage in such practice in a
14 firm registered pursuant to section seventy-four hundred eight of this
15 article.
16 § 4. Section 7408 of the education law, as added by chapter 987 of the
17 laws of 1971, the opening paragraph of subdivision 1 and subdivision 2
18 as amended by chapter 994 of the laws of 1971, and paragraph e of subdi-
19 vision 1 as amended by chapter 62 of the laws of 1989, is amended to
20 read as follows:
21 § 7408. Special provisions. 1. Nothing contained in this article
22 shall be deemed to prohibit two or more certified public accountants or
23 two or more public accountants, or any combination thereof, from forming
24 a [partnership; provided, however, that no partnership] firm.
25 2. No firm shall use the words "certified public accountant" or
26 "certified public accountants" or the letters ["C.P.A.'s"] "CPA" or
27 "CPAs" in connection with its name unless the sole proprietor or each
28 partner, member or shareholder of such [partnership] firm, resident or
29 engaged within the United States in practice is in good standing as a
30 certified public accountant of one or more of the states or political
31 subdivisions of the United States, and the sole proprietor or each part-
32 ner, member or shareholder thereof resident or engaged in practice with-
33 in the state is licensed under this article.
34 a. A registration shall be issued to a [partnership] firm upon payment
35 of the fee prescribed by the commissioner upon application showing that:
36 (1) At least one partner, member or shareholder of such [partnership]
37 firm or the sole proprietorship is licensed under this article and his
38 or her license to practice is not currently suspended, annulled or
39 revoked in any jurisdiction and he or she is regularly engaged in prac-
40 tice on behalf of the [partnership] firm within the state;
41 (2) The [partnership] firm, other than a sole proprietorship, consists
42 of at least two present [members] partners, members or shareholders; and
43 (3) The [partnership] firm other than a sole proprietorship contains
44 at least as many present partners, members or shareholders as the total
45 number of names in the firm name, or, where the word "company" or abbre-
46 viation "co." is used, the number of present partners, members or share-
47 holders shall be greater than the number of names in the firm name.
48 b. [Such registration may be revoked] The board of regents may revoke
49 such registration or take other disciplinary action after a hearing
50 conducted in accordance with the provisions of section sixty-five
51 hundred ten of this title in the same manner and to the same extent as
52 is provided with respect to individuals licensed pursuant to this arti-
53 cle, or upon proof:
54 (1) That the registration was obtained by either misrepresentation or
55 suppression of any material fact;
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1 (2) That disciplinary action has been sustained by a duly authorized
2 professional disciplinary agency in any jurisdiction against the license
3 or authorization to practice of any partner [is suspended, annulled or
4 revoked in any jurisdiction], sole proprietor, member or shareholder;
5 (3) That any partner, sole proprietor, member or shareholder in such a
6 [partnership] firm is or has been engaged in the practice of public
7 accountancy in this state who is not licensed in this state; [or]
8 (4) That the [partnership] firm failed to file the written notifica-
9 tion required pursuant to paragraph d of this subdivision [of this
10 section.]; or
11 (5) That the firm failed to undergo a review of its attest or compila-
12 tion services pursuant to section seventy-four hundred ten of this arti-
13 cle at least once every three years.
14 c. Personal service on any general partner, sole proprietor, member or
15 shareholder of a notice of hearing to revoke [a partnership] the regis-
16 tration of, or take other disciplinary action against, a firm registered
17 hereunder shall be deemed service on the [partnership] firm.
18 d. A [partnership] firm registered to practice pursuant to this
19 section shall file with the department on or before July first of each
20 year written notification of:
21 (1) Any admission of a partner, member or shareholder,
22 (2) Any resignation, termination, retirement or death of a partner or
23 member or shareholder,
24 (3) Any termination of [partnership] a firm, or
25 (4) Any occurrence of any event or events which would eliminate as to
26 such [partnership] firm conformity with the applicable requirements of
27 this section.
28 e. [Partnerships] Firms shall register triennially [and pay a fee of
29 fifty dollars].
30 3. a. No firm shall engage in the practice of public accountancy as
31 defined in subdivision one of section seventy-four hundred one of this
32 article or use the title "CPA" or "CPA firm" or the title "PA" or the
33 title "PA firm" without a registration from the department. As a condi-
34 tion of registration or renewal, the firm shall demonstrate that it has
35 complied with the provisions of this article, any other applicable laws
36 and such other requirements as the department may impose, consistent
37 with this article, except that the provisions of section seventy-four
38 hundred ten of this article shall not apply on initial registration.
39 b. The commissioner, with the assistance of the state board, shall
40 establish in regulations a registration process for certified public
41 accountancy firms and public accountancy firms, including the imposition
42 of application and registration fees and procedures to suspend or revoke
43 a registration or take other disciplinary action for cause.
44 [2] 4. Any person shall be guilty of a class A misdemeanor who shall
45 use, in connection with the practice of public accountancy, or in any
46 manner tending to imply that he is an independent accountant or auditor,
47 the designations "chartered accountant", "certified accountant", "expert
48 accountant", "certified tax accountant", "tax accountant", "enrolled
49 accountant", "enrolled public accountant", "registered accountant",
50 "licensed accountant", "incorporated accountant", "registered public
51 accountant", "licensed public accountant", or any abbreviation thereof,
52 or the letters "C.A.", "E.A.", "C.T.A.", "T.A.", "E.P.A.", "R.A.",
53 "L.A.", "I.A.", "P.A.", "R.P.A.", or, "L.P.A.", except as provided else-
54 where in this article, or any other designation tending to imply that he
55 or she has expert knowledge in accounting or auditing. The title
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1 "enrolled agent" or the designation "E.A." may only be used by individ-
2 uals so designated by the United States internal revenue service.
3 § 5. Section 7409 of the education law, as added by chapter 805 of the
4 laws of 1990, is amended to read as follows:
5 § 7409. Mandatory continuing education. 1. [(a)] a. Each licensed
6 certified public accountant and public accountant required under article
7 one hundred thirty of this chapter to register triennially with the
8 department to practice in the state shall comply with the provisions of
9 the mandatory continuing education requirements except as set forth in
10 [paragraphs (b) and (c)] paragraph b of this subdivision. Certified
11 public accountants and public accountants who do not satisfy the manda-
12 tory continuing education requirements shall not practice until they
13 have met such requirements, they have paid all applicable fees, and they
14 have been issued a registration or conditional registration certificate.
15 [(b)] b. Certified public accountants and public accountants shall be
16 exempt from the mandatory continuing education requirement for the
17 triennial registration period during which they are first licensed. In
18 accordance with the intent of this section, adjustments to the mandatory
19 continuing education requirement may be granted by the department for
20 reasons of health certified by a physician, for extended active duty
21 with armed forces of the United States, or for other good cause accepta-
22 ble to the department which may prevent compliance.
23 [(c) A licensed certified public accountant and a public accountant
24 not engaged in public practice as an individual practitioner, a partner
25 of a partnership, a shareholder of a professional service corporation,
26 or an employee of such practice units, shall be exempt from the mandato-
27 ry continuing education requirement and payment of the mandatory contin-
28 uing education fee upon the filing of a statement with the department
29 declaring such status. Any licensee who returns to the public practice
30 of certified public accountancy or public accountancy during the trien-
31 nial registration period shall notify the department prior to reentering
32 the profession and shall pay the current mandatory continuing education
33 fee and shall meet such mandatory continuing education requirements as
34 shall be prescribed by regulations of the commissioner.]
35 2. a. During each year of the triennial registration period beginning
36 September first, [nineteen hundred ninety and ending September first,]
37 nineteen hundred ninety-three and each registration period thereafter
38 ending December thirty-first, two thousand three, an applicant for
39 registration shall have the option of [(a)] (1) completing a minimum of
40 forty contact hours of acceptable formal continuing education in recog-
41 nized areas of study, or [(b)] (2) completing a minimum of twenty-four
42 contact hours of acceptable formal continuing education concentrated in
43 any one of the following three subject areas: auditing, accounting, or
44 taxation.
45 b. For applicants whose triennial registration date occurs on or
46 after January first, two thousand four, for each calendar year beginning
47 with the two thousand four calendar year, an applicant for registration
48 shall have the option of (1) completing a minimum of forty contact hours
49 of acceptable formal continuing education in recognized areas of study,
50 or (2) completing a minimum of twenty-four contact hours of acceptable
51 formal continuing education concentrated in any one of such recognized
52 areas of study; provided, however, that any continuing education contact
53 hours earned between September first, two thousand three and December
54 thirty-first, two thousand three may be credited toward the minimum
55 contact hours required for the calendar year beginning January first,
56 two thousand four.
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1 c. A licensee who has not satisfied the mandatory continuing education
2 requirements shall not be issued a triennial registration certificate by
3 the department and shall not practice unless and until a conditional
4 registration certificate is issued as provided in subdivision three of
5 this section. No hourly credits may be transferred from one year to a
6 subsequent year, except as provided in paragraph b of subdivision two of
7 this section. The individual licensee shall determine the selection of
8 courses or programs of study pursuant to subdivision four of this
9 section.
10 3. The department, in its discretion, may issue a conditional regis-
11 tration to a licensee who fails to meet the continuing education
12 requirements established in subdivision two of this section but who
13 agrees to make up any deficiencies and take any additional education
14 which the department may require. The fee for such a conditional regis-
15 tration shall be the same as, and in addition to, the fee for the trien-
16 nial registration. The duration of such conditional registration shall
17 be determined by the department. Any licensee who is notified of the
18 denial of registration for failure to submit evidence, satisfactory to
19 the department, of required continuing education and who practices
20 public accountancy without such registration, may be subject to disci-
21 plinary proceedings pursuant to section [six thousand five] sixty-five
22 hundred ten of this [chapter] title.
23 4. As used in subdivision two of this section, "acceptable formal
24 continuing education" shall mean formal programs of learning which
25 contribute to professional practice and growth in the professional know-
26 ledge and professional competence and ethics of the licensee, and which
27 meet the standards prescribed by regulations of the commissioner. Recog-
28 nized areas of study shall include but not be limited to: accounting,
29 auditing, taxation, advisory services, specialized knowledge and appli-
30 cations related to specialized industries, and such other [technical]
31 areas appropriately related to the practice of accounting as may be
32 acceptable to the department. To fulfill the mandatory continuing educa-
33 tion requirement, programs must be taken from sponsors approved by the
34 department, pursuant to the regulations of the commissioner.
35 5. The mandatory continuing education fee shall be determined by the
36 regents, shall be payable on or before the first day of each triennial
37 registration period, and shall be paid in addition to the triennial
38 registration fee required by section [seven thousand four] seventy-four
39 hundred four of this article.
40 § 6. The education law is amended by adding four new sections 7410,
41 7411, 7412 and 7413 to read as follows:
42 § 7410. Mandatory quality review of firms. 1. a. As a condition of
43 initial registration, a firm shall submit to the department a satisfac-
44 tory quality review report of its attest and compilation services, which
45 has been conducted in accordance with a quality review program approved
46 by the department within three years immediately preceding the applica-
47 tion, unless exempted under paragraph f of subdivision three of this
48 section.
49 b. As a condition for renewing the registration of a firm registered
50 in this state, the department shall require the firm to undergo a quali-
51 ty review in accordance with this section at least once during the
52 three-year period preceding the application for renewal, unless exempted
53 by the department. The quality review shall be conducted by a review
54 team approved by the department, which shall consist of one or more
55 certified public accountants in good standing, be independent of the
56 firm reviewed, and possess such other qualifications as established by
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1 the department. The department may authorize a recognized statewide or
2 national professional accounting organization, or other appropriate
3 third party to administer the quality review. Approved reviewers shall
4 file the reports of their quality reviews with the department in a
5 manner that is identified in regulations of the commissioner.
6 2. A firm shall undergo a quality review pursuant to standards and
7 procedures approved by the state board to determine, verify and report:
8 a. On the degree of compliance of the firm in performing under gener-
9 ally accepted auditing standards, and other similarly recognized techni-
10 cal standards, and
11 b. On the competence of those licensed individuals in the firm who
12 supervise attest and compilation services and sign or authorize any
13 individual in the firm to sign reports of financial statements on behalf
14 of the firm.
15 3. The standards for quality reviews promulgated by the department
16 shall include, at a minimum, procedures for:
17 a. selecting and training, if necessary, qualified reviewers;
18 b. developing criteria for assignment of reviewers to specific quali-
19 ty reviews;
20 c. ensuring the independence and impartiality of the reviewer;
21 d. evaluating the findings of the reviewer by the state board, which
22 may accept in whole or in part, reject in whole or in part, or remand
23 the findings of the reviewer;
24 e. sanctioning firms or licensed individuals who are not in compliance
25 with state laws, rules or regulations or applicable professional stand-
26 ards and practice, including referring the matter to the department for
27 appropriate disciplinary action;
28 f. developing grounds for exemption from the requirement to undergo a
29 quality review;
30 g. relying on the results and findings of quality reviews of firms
31 conducted in accordance with quality review requirements of the United
32 States securities exchange commission, federal general accounting office
33 or other appropriate third party which the department may deem substan-
34 tially equivalent to the requirements of this section; and
35 h. ensuring that all records and files relating to a quality review
36 are confidential except as provided in subdivision five of this section.
37 4. The standards of quality reviews promulgated by the department
38 shall also include criteria for assessment of quality reviews by a qual-
39 ity review oversight committee of the state board, appointed by the
40 board of regents, which shall be authorized to refer appropriate quality
41 reviews to the department for disciplinary action.
42 5. Notwithstanding any provision of law to the contrary, the records
43 submitted by a firm in accordance with this section, and the comments of
44 reviewers, the oversight committee or the state board in relation to
45 reports submitted by firms or working papers relating thereto shall be
46 confidential; provided, however, that the report of the quality review
47 shall constitute a public record and shall be subject to disclosure
48 under article six of the public officers law.
49 § 7411. Penalties for professional misconduct. Notwithstanding any
50 provision of section sixty-five hundred eleven of this title, a certi-
51 fied public accountant or public accountant or firm that is found guilty
52 of professional misconduct may be subject to a fine not to exceed twenty
53 thousand dollars for a licensed individual or one hundred thousand
54 dollars for a firm, upon each specification of charges of which the
55 respondent is determined to be guilty. The amount of fine for each spec-
56 ification shall not exceed the greater of fifty thousand dollars for a
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1 licensed individual or two hundred fifty thousand dollars for a firm, if
2 the professional misconduct involved fraud, deceit, manipulation or
3 deliberate or reckless disregard of the education law, rules of the
4 board of regents or regulations of the commissioner.
5 § 7412. Public accountancy task force. 1. There shall be established
6 within the department a public accountancy task force which, pursuant to
7 the provisions of this section, shall have the duty and the power to
8 conduct investigations and prosecutions of professional misconduct.
9 2. Notwithstanding any other provision of law, the commissioner,
10 subject to the approval of the board of regents, shall have power, in
11 conformity with their rules, to appoint and at their discretion remove
12 from office, such prosecutors, investigators and other persons as they
13 deem necessary, fix their titles, duties and salaries consistent with
14 sections one hundred three and one hundred four of this chapter.
15 § 7413. Public accountancy oversight account. Firm registration fees
16 provided for in section seventy-four hundred eight of this article,
17 fines for professional misconduct pursuant to section seventy-four
18 hundred eleven of this article, and individual registration fees
19 provided for in section seventy-four hundred four of this article up to
20 an amount sufficient to support the public accountancy task force as
21 described in section seventy-four hundred twelve of this article, shall
22 be paid into the New York state public accountancy oversight account
23 pursuant to section ninety-nine-i of the state finance law.
24 § 7. The state finance law is amended by adding a new section 99-i to
25 read as follows:
26 § 99-i. New York state public accountancy oversight account. 1. There
27 is hereby established in the custody of the comptroller, a special fund
28 to be known as the "New York state public accountancy oversight
29 account".
30 2. The account shall consist of all moneys received from firm regis-
31 tration fees provided for in section seventy-four hundred eight of the
32 education law, all moneys received from fines for professional miscon-
33 duct imposed pursuant to section seventy-four hundred eleven of the
34 education law, all moneys transferred to such account pursuant to law
35 and all moneys required by the provisions of this section or any other
36 law to be paid into or credited to such account, including all moneys
37 received by the account or donated to it. Moneys in the account shall be
38 kept separate and shall not be commingled with any other moneys other-
39 wise appropriated or received except as provided in this section.
40 3. Moneys of the account shall be available to the department to
41 support the public accountancy task force as described in section seven-
42 ty-four hundred twelve of the education law.
43 4. At the end of any fiscal year, any funds not encumbered for these
44 purposes shall be reallocated for the following year for the costs of
45 carrying out the purposes of article one hundred forty-nine of the
46 education law.
47 5. Notwithstanding any other provision of law to the contrary, if
48 there are insufficient funds received during a fiscal year from the
49 sources designated in subdivision two of this section, then individual
50 registration fees provided for in section seventy-hundred four of the
51 education law may be paid into or credited to the account up to an
52 amount sufficient to support the public accountancy task force as certi-
53 fied by the commissioner of education.
54 6. Nothing contained in this section shall prevent the department or
55 the comptroller from receiving grants, gifts or bequests for the
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1 purposes of the fund as defined in this section and depositing them into
2 the account according to law.
3 § 8. Subdivision (a) of section 1203 of the limited liability company
4 law, as amended by chapter 643 of the laws of 1995, is amended to read
5 as follows:
6 (a) Notwithstanding the education law or any other provision of law,
7 one or more professionals each of whom is authorized by law to render a
8 professional service within the state, or one or more professionals, at
9 least one of whom is authorized by law to render a professional service
10 within the state, may form, or cause to be formed, a professional
11 service limited liability company for pecuniary profit under this arti-
12 cle for the purpose of rendering the professional service or services as
13 such professionals are authorized to practice. With respect to a profes-
14 sional service limited liability company formed to provide medical
15 services as such services are defined in article 131 of the education
16 law, each member of such limited liability company must be licensed
17 pursuant to article 131 of the education law to practice medicine in
18 this state. With respect to a professional service limited liability
19 company formed to provide dental services as such services are defined
20 in article 133 of the education law, each member of such limited liabil-
21 ity company must be licensed pursuant to article 133 of the education
22 law to practice dentistry in this state. With respect to a professional
23 service limited liability company formed to provide veterinary services
24 as such services are defined in article 135 of the education law, each
25 member of such limited liability company shall be licensed pursuant to
26 article 135 of the education law to practice veterinary medicine. With
27 respect to a professional service limited liability company formed to
28 provide professional engineering, land surveying, architectural and/or
29 landscape architectural services as such services are defined in article
30 145, article 147 and article 148 of the education law, each member of
31 such limited liability company must be licensed pursuant to article 145,
32 article 147 and/or article 148 of the education law to practice one or
33 more of such professions in this state. With respect to a professional
34 service limited liability company formed to provide public accounting
35 services as such services are defined in article 149 of the education
36 law, each member of such limited liability company who resides or
37 provides public accountancy services in this state shall be licensed
38 pursuant to article 149 of the education law to practice public accoun-
39 tancy in this state, and all other members must be licensed and in good
40 standing as public accountants in a duly authorized licensing jurisdic-
41 tion. In addition to engaging in such profession or professions, a
42 professional service limited liability company may engage in any other
43 business or activities as to which a limited liability company may be
44 formed under section two hundred one of this chapter. Notwithstanding
45 any other provision of this section, a professional service limited
46 liability company (i) authorized to practice law may only engage in
47 another profession or business or activities or (ii) which is engaged in
48 a profession or other business or activities other than law may only
49 engage in the practice of law, to the extent not prohibited by any other
50 law of this state or any rule adopted by the appropriate appellate divi-
51 sion of the supreme court or the court of appeals.
52 § 8-a. Subdivision (a) of section 1203 of the limited liability
53 company law, as amended by chapter 420 of the laws of 2002, is amended
54 to read as follows:
55 (a) notwithstanding the education law or any other provision of law,
56 one or more professionals each of whom is authorized by law to render a
A. 8286 10
1 professional service within the state, or one or more professionals, at
2 least one of whom is authorized by law to render a professional service
3 within the state, may form, or cause to be formed, a professional
4 service limited liability company for pecuniary profit under this arti-
5 cle for the purpose of rendering the professional service or services as
6 such professionals are authorized to practice. With respect to a profes-
7 sional service limited liability company formed to provide medical
8 services as such services are defined in article 131 of the education
9 law, each member of such limited liability company must be licensed
10 pursuant to article 131 of the education law to practice medicine in
11 this state. With respect to a professional service limited liability
12 company formed to provide dental services as such services are defined
13 in article 133 of the education law, each member of such limited liabil-
14 ity company must be licensed pursuant to article 133 of the education
15 law to practice dentistry in this state. With respect to a professional
16 service limited liability company formed to provide veterinary services
17 as such services are defined in article 135 of the education law, each
18 member of such limited liability company must be licensed pursuant to
19 article 135 of the education law to practice veterinary medicine in this
20 state. With respect to a professional service limited liability company
21 formed to provide professional engineering, land surveying, architec-
22 tural and/or landscape architectural services as such services are
23 defined in article 145, article 147 and article 148 of the education
24 law, each member of such limited liability company must be licensed
25 pursuant to article 145, article 147 and/or article 148 of the education
26 law to practice one or more of such professions in this state. With
27 respect to a professional service limited liability company formed to
28 provide licensed clinical social work services as such services are
29 defined in article 154 of the education law, each member of such limited
30 liability company shall be licensed pursuant to article 154 of the
31 education law to practice licensed clinical social work in this state.
32 With respect to a professional service limited liability company formed
33 to provide public accounting services as such services are defined in
34 article 149 of the education law, each member of such limited liability
35 company who resides or provides public accountancy services in this
36 state shall be licensed pursuant to article 149 of the education law to
37 practice public accountancy in this state, and all other members must be
38 licensed and in good standing as public accountants in a duly authorized
39 licensing jurisdiction. In addition to engaging in such profession or
40 professions, a professional service limited liability company may engage
41 in any other business or activities as to which a limited liability
42 company may be formed under section two hundred one of this chapter.
43 Notwithstanding any other provision of this section, a professional
44 service limited liability company (i) authorized to practice law may
45 only engage in another profession or business or activities or (ii)
46 which is engaged in a profession or other business or activities other
47 than law may only engage in the practice of law, to the extent not
48 prohibited by any other law of this state or any rule adopted by the
49 appropriate appellate division of the supreme court or the court of
50 appeals.
51 § 8-b. Subdivision (a) of section 1203 of the limited liability
52 company law, as amended by chapter 676 of the laws of 2002, is amended
53 to read as follows:
54 (a) Notwithstanding the education law or any other provision of law,
55 one or more professionals each of whom is authorized by law to render a
56 professional service within the state, or one or more professionals, at
A. 8286 11
1 least one of whom is authorized by law to render a professional service
2 within the state, may form, or cause to be formed, a professional
3 service limited liability company for pecuniary profit under this arti-
4 cle for the purpose of rendering the professional service or services as
5 such professionals are authorized to practice. With respect to a profes-
6 sional service limited liability company formed to provide medical
7 services as such services are defined in article 131 of the education
8 law, each member of such limited liability company must be licensed
9 pursuant to article 131 of the education law to practice medicine in
10 this state. With respect to a professional service limited liability
11 company formed to provide dental services as such services are defined
12 in article 133 of the education law, each member of such limited liabil-
13 ity company must be licensed pursuant to article 133 of the education
14 law to practice dentistry in this state. With respect to a professional
15 service limited liability company formed to provide veterinary services
16 as such services are defined in article 135 of the education law, each
17 member of such limited liability company shall be licensed pursuant to
18 article 135 of the education law to practice veterinary medicine. With
19 respect to a professional service limited liability company formed to
20 provide professional engineering, land surveying, architectural and/or
21 landscape architectural services as such services are defined in article
22 145, article 147 and article 148 of the education law, each member of
23 such limited liability company must be licensed pursuant to article 145,
24 article 147 and/or article 148 of the education law to practice one or
25 more of such professions in this state. With respect to a professional
26 service limited liability company formed to provide creative arts thera-
27 py services as such services are defined in article 163 of the education
28 law, each member of such limited liability company must be licensed
29 pursuant to article 163 of the education law to practice creative arts
30 therapy in this state. With respect to a professional service limited
31 liability company formed to provide marriage and family therapy services
32 as such services are defined in article 163 of the education law, each
33 member of such limited liability company must be licensed pursuant to
34 article 163 of the education law to practice marriage and family therapy
35 in this state. With respect to a professional service limited liability
36 company formed to provide mental health counseling services as such
37 services are defined in article 163 of the education law, each member of
38 such limited liability company must be licensed pursuant to article 163
39 of the education law to practice mental health counseling in this state.
40 With respect to a professional service limited liability company formed
41 to provide psychoanalysis services as such services are defined in arti-
42 cle 163 of the education law, each member of such limited liability
43 company must be licensed pursuant to article 163 of the education law to
44 practice psychoanalysis in this state. With respect to a professional
45 service limited liability company formed to provide public accounting
46 services as such services are defined in article 149 of the education
47 law, each member of such limited liability company who resides or
48 provides public accountancy services in this state shall be licensed
49 pursuant to article 149 of the education law to practice public accoun-
50 tancy in this state, and all other members must be licensed and in good
51 standing as public accountants in a duly authorized licensing jurisdic-
52 tion. In addition to engaging in such profession or professions, a
53 professional service limited liability company may engage in any other
54 business or activities as to which a limited liability company may be
55 formed under section two hundred one of this chapter. Notwithstanding
56 any other provision of this section, a professional service limited
A. 8286 12
1 liability company (i) authorized to practice law may only engage in
2 another profession or business or activities or (ii) which is engaged in
3 a profession or other business or activities other than law may only
4 engage in the practice of law, to the extent not prohibited by any other
5 law of this state or any rule adopted by the appropriate appellate divi-
6 sion of the supreme court or the court of appeals.
7 § 8-c. Subdivision (a) of section 1203 of the limited liability
8 company law, as separately amended by chapters 420 and 676 of the laws
9 of 2002, is amended to read as follows:
10 (a) Notwithstanding the education law or any other provision of law,
11 one or more professionals each of whom is authorized by law to render a
12 professional service within the state, or one or more professionals, at
13 least one of whom is authorized by law to render a professional service
14 within the state, may form, or cause to be formed, a professional
15 service limited liability company for pecuniary profit under this arti-
16 cle for the purpose of rendering the professional service or services as
17 such professionals are authorized to practice. With respect to a profes-
18 sional service limited liability company formed to provide medical
19 services as such services are defined in article 131 of the education
20 law, each member of such limited liability company must be licensed
21 pursuant to article 131 of the education law to practice medicine in
22 this state. With respect to a professional service limited liability
23 company formed to provide dental services as such services are defined
24 in article 133 of the education law, each member of such limited liabil-
25 ity company must be licensed pursuant to article 133 of the education
26 law to practice dentistry in this state. With respect to a professional
27 service limited liability company formed to provide veterinary services
28 as such services are defined in article 135 of the education law, each
29 member of such limited liability company must be licensed pursuant to
30 article 135 of the education law to practice veterinary medicine in this
31 state. With respect to a professional service limited liability company
32 formed to provide professional engineering, land surveying, architec-
33 tural and/or landscape architectural services as such services are
34 defined in article 145, article 147 and article 148 of the education
35 law, each member of such limited liability company must be licensed
36 pursuant to article 145, article 147 and/or article 148 of the education
37 law to practice one or more of such professions in this state. With
38 respect to a professional service limited liability company formed to
39 provide licensed clinical social work services as such services are
40 defined in article 154 of the education law, each member of such limited
41 liability company shall be licensed pursuant to article 154 of the
42 education law to practice licensed clinical social work in this state.
43 With respect to a professional service limited liability company formed
44 to provide creative arts therapy services as such services are defined
45 in article 163 of the education law, each member of such limited liabil-
46 ity company must be licensed pursuant to article 163 of the education
47 law to practice creative arts therapy in this state. With respect to a
48 professional service limited liability company formed to provide
49 marriage and family therapy services as such services are defined in
50 article 163 of the education law, each member of such limited liability
51 company must be licensed pursuant to article 163 of the education law to
52 practice marriage and family therapy in this state. With respect to a
53 professional service limited liability company formed to provide mental
54 health counseling services as such services are defined in article 163
55 of the education law, each member of such limited liability company must
56 be licensed pursuant to article 163 of the education law to practice
A. 8286 13
1 mental health counseling in this state. With respect to a professional
2 service limited liability company formed to provide psychoanalysis
3 services as such services are defined in article 163 of the education
4 law, each member of such limited liability company must be licensed
5 pursuant to article 163 of the education law to practice psychoanalysis
6 in this state. With respect to a professional service limited liability
7 company formed to provide public accounting services as such services
8 are defined in article 149 of the education law, each member of such
9 limited liability company who resides or provides public accountancy
10 services in this state shall be licensed pursuant to article 149 of the
11 education law to practice public accountancy in this state, and all
12 other members must be licensed and in good standing as public account-
13 ants in a duly authorized licensing jurisdiction. In addition to engag-
14 ing in such profession or professions, a professional service limited
15 liability company may engage in any other business or activities as to
16 which a limited liability company may be formed under section two
17 hundred one of this chapter. Notwithstanding any other provision of this
18 section, a professional service limited liability company (i) authorized
19 to practice law may only engage in another profession or business or
20 activities or (ii) which is engaged in a profession or other business or
21 activities other than law may only engage in the practice of law, to the
22 extent not prohibited by any other law of this state or any rule adopted
23 by the appropriate appellate division of the supreme court or the court
24 of appeals.
25 § 8-d. Subdivision (a) of section 1301 of the limited liability
26 company law, as amended by chapter 643 of the laws of 1995, is amended
27 to read as follows:
28 (a) "Foreign professional service limited liability company" means a
29 professional service limited liability company, whether or not denomi-
30 nated as such, organized under the laws of a jurisdiction other than
31 this state, (i) each of whose members and managers, if any, is a profes-
32 sional authorized by law to render a professional service within this
33 state and who is or has been engaged in the practice of such profession
34 in such professional service limited liability company or a predecessor
35 entity, or will engage in the practice of such profession in the profes-
36 sional service limited liability company within thirty days of the date
37 such professional becomes a member, or each of whose members and manag-
38 ers, if any, is a professional at least one of such members is author-
39 ized by law to render a professional service within this state and who
40 is or has been engaged in the practice of such profession in such
41 professional service limited liability company or a predecessor entity,
42 or will engage in the practice of such profession in the professional
43 service limited liability company within thirty days of the date such
44 professional becomes a member, or (ii) authorized by, or holding a
45 license, certificate, registration or permit issued by the licensing
46 authority pursuant to, the education law to render a professional
47 service within this state; except that all members and managers, if any,
48 of a foreign professional service limited liability company that
49 provides health services in this state shall be licensed in this state.
50 With respect to a foreign professional service limited liability company
51 which provides veterinary services as such services are defined in arti-
52 cle 135 of the education law, each member of such foreign professional
53 service limited liability company shall be licensed pursuant to article
54 135 of the education law to practice veterinary medicine. With respect
55 to a foreign professional service limited liability company which
56 provides medical services as such services are defined in article 131 of
A. 8286 14
1 the education law, each member of such foreign professional service
2 limited liability company must be licensed pursuant to article 131 of
3 the education law to practice medicine in this state. With respect to a
4 foreign professional service limited liability company which provides
5 dental services as such services are defined in article 133 of the
6 education law, each member of such foreign professional service limited
7 liability company must be licensed pursuant to article 133 of the educa-
8 tion law to practice dentistry in this state. With respect to a foreign
9 professional service limited liability company which provides profes-
10 sional engineering, land surveying, architectural and/or landscape
11 architectural services as such services are defined in article 145,
12 article 147 and article 148 of the education law, each member of such
13 foreign professional service limited liability company must be licensed
14 pursuant to article 145, article 147 and/or article 148 of the education
15 law to practice one or more of such professions in this state. With
16 respect to a foreign professional service limited liability company
17 which provides public accountancy services as such services are defined
18 in article 149 of the education law, each member of such foreign profes-
19 sional service limited liability company who resides in or provides
20 public accountancy services in this state must be licensed pursuant to
21 article 149 of the education law to practice public accountancy in this
22 state, and all members must be licensed and in good standing as public
23 accountants in a duly authorized licensing jurisdiction.
24 § 8-e. Subdivision (a) of section 1301 of the limited liability
25 company law, as amended by chapter 420 of the laws of 2002, is amended
26 to read as follows:
27 (a) "Foreign professional service limited liability company" means a
28 professional service limited liability company, whether or not denomi-
29 nated as such, organized under the laws of a jurisdiction other than
30 this state, (i) each of whose members and managers, if any, is a profes-
31 sional authorized by law to render a professional service within this
32 state and who is or has been engaged in the practice of such profession
33 in such professional service limited liability company or a predecessor
34 entity, or will engage in the practice of such profession in the profes-
35 sional service limited liability company within thirty days of the date
36 such professional becomes a member, or each of whose members and manag-
37 ers, if any, is a professional at least one of such members is author-
38 ized by law to render a professional service within this state and who
39 is or has been engaged in the practice of such profession in such
40 professional service limited liability company or a predecessor entity,
41 or will engage in the practice of such profession in the professional
42 service limited liability company within thirty days of the date such
43 professional becomes a member, or (ii) authorized by, or holding a
44 license, certificate, registration or permit issued by the licensing
45 authority pursuant to, the education law to render a professional
46 service within this state; except that all members and managers, if any,
47 of a foreign professional service limited liability company that
48 provides health services in this state shall be licensed in this state.
49 With respect to a foreign professional service limited liability company
50 which provides veterinary services as such services are defined in arti-
51 cle 135 of the education law, each member of such foreign professional
52 service limited liability company shall be licensed pursuant to article
53 135 of the education law to practice veterinary medicine. With respect
54 to a foreign professional service limited liability company which
55 provides medical services as such services are defined in article 131 of
56 the education law, each member of such foreign professional service
A. 8286 15
1 limited liability company must be licensed pursuant to article 131 of
2 the education law to practice medicine in this state. With respect to a
3 foreign professional service limited liability company which provides
4 dental services as such services are defined in article 133 of the
5 education law, each member of such foreign professional service limited
6 liability company must be licensed pursuant to article 133 of the educa-
7 tion law to practice dentistry in this state. With respect to a foreign
8 professional service limited liability company which provides profes-
9 sional engineering, land surveying, architectural and/or landscape
10 architectural services as such services are defined in article 145,
11 article 147 and article 148 of the education law, each member of such
12 foreign professional service limited liability company must be licensed
13 pursuant to article 145, article 147 and/or article 148 of the education
14 law to practice one or more of such professions in this state. With
15 respect to a foreign professional service limited liability company
16 which provides licensed clinical social work services as such services
17 are defined in article 154 of the education law, each member of such
18 foreign professional service limited liability company shall be licensed
19 pursuant to article 154 of the education law to practice clinical social
20 work in this state. With respect to a foreign professional service
21 limited liability company which provides public accountancy services as
22 such services are defined in article 149 of the education law, each
23 member of such foreign professional service limited liability company
24 who resides in or provides public accountancy services in this state
25 must be licensed pursuant to article 149 of the education law to prac-
26 tice public accountancy in this state, and all members must be licensed
27 and in good standing as public accountants in a duly authorized licens-
28 ing jurisdiction.
29 § 8-f. Subdivision (a) of section 1301 of the limited liability
30 company law, as amended by chapter 676 of the laws of 2002, is amended
31 to read as follows:
32 (a) "Foreign professional service limited liability company" means a
33 professional service limited liability company, whether or not denomi-
34 nated as such, organized under the laws of a jurisdiction other than
35 this state, (i) each of whose members and managers, if any, is a profes-
36 sional authorized by law to render a professional service within this
37 state and who is or has been engaged in the practice of such profession
38 in such professional service limited liability company or a predecessor
39 entity, or will engage in the practice of such profession in the profes-
40 sional service limited liability company within thirty days of the date
41 such professional becomes a member, or each of whose members and manag-
42 ers, if any, is a professional at least one of such members is author-
43 ized by law to render a professional service within this state and who
44 is or has been engaged in the practice of such profession in such
45 professional service limited liability company or a predecessor entity,
46 or will engage in the practice of such profession in the professional
47 service limited liability company within thirty days of the date such
48 professional becomes a member, or (ii) authorized by, or holding a
49 license, certificate, registration or permit issued by the licensing
50 authority pursuant to, the education law to render a professional
51 service within this state; except that all members and managers, if any,
52 of a foreign professional service limited liability company that
53 provides health services in this state shall be licensed in this state.
54 With respect to a foreign professional service limited liability company
55 which provides veterinary services as such services are defined in arti-
56 cle 135 of the education law, each member of such foreign professional
A. 8286 16
1 service limited liability company shall be licensed pursuant to article
2 135 of the education law to practice veterinary medicine. With respect
3 to a foreign professional service limited liability company which
4 provides medical services as such services are defined in article 131 of
5 the education law, each member of such foreign professional service
6 limited liability company must be licensed pursuant to article 131 of
7 the education law to practice medicine in this state. With respect to a
8 foreign professional service limited liability company which provides
9 dental services as such services are defined in article 133 of the
10 education law, each member of such foreign professional service limited
11 liability company must be licensed pursuant to article 133 of the educa-
12 tion law to practice dentistry in this state. With respect to a foreign
13 professional service limited liability company which provides profes-
14 sional engineering, land surveying, architectural and/or landscape
15 architectural services as such services are defined in article 145,
16 article 147 and article 148 of the education law, each member of such
17 foreign professional service limited liability company must be licensed
18 pursuant to article 145, article 147 and/or article 148 of the education
19 law to practice one or more of such professions in this state. With
20 respect to a foreign professional service limited liability company
21 which provides creative arts therapy services as such services are
22 defined in article 163 of the education law, each member of such foreign
23 professional service limited liability company must be licensed pursuant
24 to article 163 of the education law to practice creative arts therapy in
25 this state. With respect to a foreign professional service limited
26 liability company which provides marriage and family therapy services as
27 such services are defined in article 163 of the education law, each
28 member of such foreign professional service limited liability company
29 must be licensed pursuant to article 163 of the education law to prac-
30 tice marriage and family therapy in this state. With respect to a
31 foreign professional service limited liability company which provides
32 mental health counseling services as such services are defined in arti-
33 cle 163 of the education law, each member of such foreign professional
34 service limited liability company must be licensed pursuant to article
35 163 of the education law to practice mental health counseling in this
36 state. With respect to a foreign professional service limited liability
37 company which provides psychoanalysis services as such services are
38 defined in article 163 of the education law, each member of such foreign
39 professional service limited liability company must be licensed pursuant
40 to article 163 of the education law to practice psychoanalysis in this
41 state. With respect to a foreign professional service limited liability
42 company which provides public accountancy services as such services are
43 defined in article 149 of the education law, each member of such foreign
44 professional service limited liability company who resides in or
45 provides public accountancy services in this state must be licensed
46 pursuant to article 149 of the education law to practice public accoun-
47 tancy in this state, and all members must be licensed and in good stand-
48 ing as public accountants in a duly authorized licensing jurisdiction.
49 § 8-g. Subdivision (a) of section 1301 of the limited liability
50 company law, as separately amended by chapters 420 and 676 of the laws
51 of 2002, is amended to read as follows:
52 (a) "Foreign professional service limited liability company" means a
53 professional service limited liability company, whether or not denomi-
54 nated as such, organized under the laws of a jurisdiction other than
55 this state, (i) each of whose members and managers, if any, is a profes-
56 sional authorized by law to render a professional service within this
A. 8286 17
1 state and who is or has been engaged in the practice of such profession
2 in such professional service limited liability company or a predecessor
3 entity, or will engage in the practice of such profession in the profes-
4 sional service limited liability company within thirty days of the date
5 such professional becomes a member, or each of whose members and manag-
6 ers, if any, is a professional at least one of such members is author-
7 ized by law to render a professional service within this state and who
8 is or has been engaged in the practice of such profession in such
9 professional service limited liability company or a predecessor entity,
10 or will engage in the practice of such profession in the professional
11 service limited liability company within thirty days of the date such
12 professional becomes a member, or (ii) authorized by, or holding a
13 license, certificate, registration or permit issued by the licensing
14 authority pursuant to, the education law to render a professional
15 service within this state; except that all members and managers, if any,
16 of a foreign professional service limited liability company that
17 provides health services in this state shall be licensed in this state.
18 With respect to a foreign professional service limited liability company
19 which provides veterinary services as such services are defined in arti-
20 cle 135 of the education law, each member of such foreign professional
21 service limited liability company shall be licensed pursuant to article
22 135 of the education law to practice veterinary medicine. With respect
23 to a foreign professional service limited liability company which
24 provides medical services as such services are defined in article 131 of
25 the education law, each member of such foreign professional service
26 limited liability company must be licensed pursuant to article 131 of
27 the education law to practice medicine in this state. With respect to a
28 foreign professional service limited liability company which provides
29 dental services as such services are defined in article 133 of the
30 education law, each member of such foreign professional service limited
31 liability company must be licensed pursuant to article 133 of the educa-
32 tion law to practice dentistry in this state. With respect to a foreign
33 professional service limited liability company which provides profes-
34 sional engineering, land surveying, architectural and/or landscape
35 architectural services as such services are defined in article 145,
36 article 147 and article 148 of the education law, each member of such
37 foreign professional service limited liability company must be licensed
38 pursuant to article 145, article 147 and/or article 148 of the education
39 law to practice one or more of such professions in this state. With
40 respect to a foreign professional service limited liability company
41 which provides licensed clinical social work services as such services
42 are defined in article 154 of the education law, each member of such
43 foreign professional service limited liability company shall be licensed
44 pursuant to article 154 of the education law to practice clinical social
45 work in this state. With respect to a foreign professional service
46 limited liability company which provides creative arts therapy services
47 as such services are defined in article 163 of the education law, each
48 member of such foreign professional service limited liability company
49 must be licensed pursuant to article 163 of the education law to prac-
50 tice creative arts therapy in this state. With respect to a foreign
51 professional service limited liability company which provides marriage
52 and family therapy services as such services are defined in article 163
53 of the education law, each member of such foreign professional service
54 limited liability company must be licensed pursuant to article 163 of
55 the education law to practice marriage and family therapy in this state.
56 With respect to a foreign professional service limited liability company
A. 8286 18
1 which provides mental health counseling services as such services are
2 defined in article 163 of the education law, each member of such foreign
3 professional service limited liability company must be licensed pursuant
4 to article 163 of the education law to practice mental health counseling
5 in this state. With respect to a foreign professional service limited
6 liability company which provides psychoanalysis services as such
7 services are defined in article 163 of the education law, each member of
8 such foreign professional service limited liability company must be
9 licensed pursuant to article 163 of the education law to practice
10 psychoanalysis in this state. With respect to a foreign professional
11 service limited liability company which provides public accountancy
12 services as such services are defined in article 149 of the education
13 law, each member of such foreign professional service limited liability
14 company who resides in or provides public accountancy services in this
15 state must be licensed pursuant to article 149 of the education law to
16 practice public accountancy in this state, and all members must be
17 licensed and in good standing as public accountants in a duly authorized
18 licensing jurisdiction.
19 § 9. Subdivision (f) of section 1301 of the limited liability company
20 law, as amended by chapter 170 of the laws of 1996, is amended to read
21 as follows:
22 (f) "Professional partnership" means (1) a partnership without limited
23 partners each of whose partners is a professional authorized by law to
24 render a professional service within this state, (2) a partnership with-
25 out limited partners each of whose partners is a professional, at least
26 one of whom is authorized by law to render a professional service within
27 this state or (3) a partnership without limited partners authorized by,
28 or holding a license, certificate, registration or permit issued by the
29 licensing authority pursuant to the education law to render a profes-
30 sional service within this state; except that all partners of a profes-
31 sional partnership that provides medical services in this state must be
32 licensed pursuant to article 131 of the education law to practice medi-
33 cine in this state and all partners of a professional partnership that
34 provides dental services in this state must be licensed pursuant to
35 article 133 of the education law to practice dentistry in this state;
36 except that all partners of a professional partnership that provides
37 veterinary services in this state must be licensed pursuant to article
38 135 of the education law to practice veterinary medicine in this state;
39 and further except that all partners of a professional partnership that
40 provides professional engineering, land surveying, architectural, and/or
41 landscape architectural services in this state must be licensed pursuant
42 to article 145, article 147 and/or article 148 of the education law to
43 practice one or more of such professions, and further except that all
44 partners of a professional partnership that reside in or provide public
45 accountancy services in this state must be licensed pursuant to article
46 149 of the education law to practice public accountancy, and all part-
47 ners must be licensed and in good standing as public accountants in a
48 duly authorized licensing jurisdiction.
49 § 10. The eighth undesignated paragraph of section 2 of the partner-
50 ship law, as amended by chapter 643 of the laws of 1995, is amended to
51 read as follows:
52 "Foreign limited liability partnership" means (i) any partnership
53 without limited partners operating under an agreement governed by the
54 laws of any jurisdiction, other than this state, each of whose partners
55 is a professional authorized by law to render a professional service
56 within this state and who is or has been engaged in the practice of such
A. 8286 19
1 profession in such partnership or a predecessor entity, or will engage
2 in the practice of such profession in the foreign limited liability
3 partnership within thirty days of the date of the effectiveness of the
4 notice provided for in subdivision (a) of section 121-1502 of this chap-
5 ter or each of whose partners is a professional, at least one of whom is
6 authorized by law to render a professional service within this state and
7 who is or has been engaged in the practice of such profession in such
8 partnership or a predecessor entity, or will engage in the practice of
9 such profession in the foreign limited liability partnership within
10 thirty days of the date of the effectiveness of the notice provided for
11 in subdivision (a) of section 121-1502 of this chapter, (ii) any part-
12 nership without limited partners operating under an agreement governed
13 by the laws of any jurisdiction, other than this state, authorized by,
14 or holding a license, certificate, registration or permit issued by the
15 licensing authority pursuant to, the education law to render a profes-
16 sional service within this state, which renders or intends to render
17 professional services within this state and which is denominated as a
18 registered limited liability partnership or limited liability partner-
19 ship under such laws, regardless of any difference between such laws and
20 the laws of this state, or (iii) a foreign related limited liability
21 partnership; except that all partners of a foreign limited liability
22 partnership that provides health, professional engineering, land survey-
23 ing, architectural and/or landscape architectural services in this state
24 shall be licensed in this state[.]; and further excepted that all part-
25 ners of a foreign limited liability partnership who reside in or provide
26 professional accountancy services in this state shall be licensed in
27 this state, and all partners must be licensed and in good standing as
28 public accountants in a duly authorized licensing jurisdiction.
29 § 11. The fourteenth undesignated paragraph of section 2 of the part-
30 nership law, as added by chapter 576 of the laws of 1994, is amended to
31 read as follows:
32 "Professional partnership" means (1) a partnership without limited
33 partners each of whose partners is a professional authorized by law to
34 render a professional service within this state, (2) a partnership with-
35 out limited partners each of whose partners is a professional, at least
36 one of whom is authorized by law to render a professional service within
37 this state or (3) a partnership without limited partners authorized by,
38 or holding a license, certificate, registration or permit issued by the
39 licensing authority pursuant to the education law to render a profes-
40 sional service within this state; except that all partners of a profes-
41 sional partnership that provides medical services in this state must be
42 licensed pursuant to article 131 of the education law to practice medi-
43 cine in this state and all partners of a professional partnership that
44 provides dental services in this state must be licensed pursuant to
45 article 133 of the education law to practice dentistry in this state;
46 and further except that all partners of a professional partnership that
47 provides professional engineering, land surveying, architectural and/or
48 landscape architectural services in this state must be licensed pursuant
49 to article 145, article 147 and/or article 148 of the education law to
50 practice one or more of such professions in this state[.]; and further
51 except that all partners of a foreign limited liability partnership who
52 reside in or provide professional accountancy services in this state
53 shall be licensed in this state, and all partners must be licensed and
54 in good standing as public accountants in a duly authorized licensing
55 jurisdiction.
A. 8286 20
1 § 12. Subdivision (q) of section 121-1500 of the partnership law, as
2 amended by chapter 643 of the laws of 1995, is amended to read as
3 follows:
4 (q) Each partner of a registered limited liability partnership formed
5 to provide medical services in this state must be licensed pursuant to
6 article 131 of the education law to practice medicine in this state and
7 each partner of a registered limited liability partnership formed to
8 provide dental services in this state must be licensed pursuant to arti-
9 cle 133 of the education law to practice dentistry in this state. Each
10 partner of a registered limited liability partnership formed to provide
11 veterinary services in this state shall be licensed pursuant to article
12 135 of the education law to practice veterinary medicine in this state.
13 Each partner of a registered limited liability partnership formed to
14 provide professional engineering, land surveying, architectural and/or
15 landscape architectural services in this state must be licensed pursuant
16 to article 145, article 147 and/or article 148 of the education law to
17 practice one or more of such professions in this state. Each partner of
18 a registered limited liability partnership formed to provide licensed
19 public accountancy services in this state who resides or provides
20 professional accountancy services in this state must be licensed pursu-
21 ant to article 149 of the education law to practice licensed public
22 accountancy in this state, and all partners must be licensed and in good
23 standing as public accountants in a duly authorized licensing jurisdic-
24 tion.
25 § 13. Subdivision (q) of section 121-1500 of the partnership law, as
26 amended by chapter 420 of the laws of 2002, is amended to read as
27 follows:
28 (q) Each partner of a registered limited liability partnership formed
29 to provide medical services in this state must be licensed pursuant to
30 article 131 of the education law to practice medicine in this state and
31 each partner of a registered limited liability partnership formed to
32 provide dental services in this state must be licensed pursuant to arti-
33 cle 133 of the education law to practice dentistry in this state. Each
34 partner of a registered limited liability partnership formed to provide
35 veterinary services in this state must be licensed pursuant to article
36 135 of the education law to practice veterinary medicine in this state.
37 Each partner of a registered limited liability partnership formed to
38 provide professional engineering, land surveying, architectural and/or
39 landscape architectural services in this state must be licensed pursuant
40 to article 145, article 147 and/or article 148 of the education law to
41 practice one or more of such professions in this state. Each partner of
42 a registered limited liability partnership formed to provide licensed
43 clinical social work services in this state must be licensed pursuant to
44 article 154 of the education law to practice clinical social work in
45 this state. Each partner of a registered limited liability partnership
46 formed to provide licensed public accountancy services in this state who
47 resides or provides professional accountancy services in this state must
48 be licensed pursuant to article 149 of the education law to practice
49 licensed public accountancy in this state, and all partners must be
50 licensed and in good standing as public accountants in a duly authorized
51 licensing jurisdiction.
52 § 14. Subdivision (q) of section 121-1500 of the partnership law, as
53 amended by chapter 676 of the laws of 2002, is amended to read as
54 follows:
55 (q) Each partner of a registered limited liability partnership formed
56 to provide medical services in this state must be licensed pursuant to
A. 8286 21
1 article 131 of the education law to practice medicine in this state and
2 each partner of a registered limited liability partnership formed to
3 provide dental services in this state must be licensed pursuant to arti-
4 cle 133 of the education law to practice dentistry in this state. Each
5 partner of a registered limited liability partnership formed to provide
6 veterinary services in this state shall be licensed pursuant to article
7 135 of the education law to practice veterinary medicine in this state.
8 Each partner of a registered limited liability partnership formed to
9 provide professional engineering, land surveying, architectural and/or
10 landscape architectural services in this state must be licensed pursuant
11 to article 145, article 147 and/or article 148 of the education law to
12 practice one or more of such professions in this state. Each partner of
13 a registered limited liability partnership formed to provide creative
14 arts therapy services in this state must be licensed pursuant to article
15 163 of the education law to practice creative arts therapy in this
16 state. Each partner of a registered limited liability partnership formed
17 to provide marriage and family therapy services in this state must be
18 licensed pursuant to article 163 of the education law to practice
19 marriage and family therapy in this state. Each partner of a registered
20 limited liability partnership formed to provide mental health counseling
21 services in this state must be licensed pursuant to article 163 of the
22 education law to practice mental health counseling in this state. Each
23 partner of a registered limited liability partnership formed to provide
24 psychoanalysis services in this state must be licensed pursuant to arti-
25 cle 163 of the education law to practice psychoanalysis in this state.
26 Each partner of a registered limited liability partnership formed to
27 provide licensed public accountancy services in this state who resides
28 or provides professional accountancy services in this state must be
29 licensed pursuant to article 149 of the education law to practice
30 licensed public accountancy in this state, and all partners must be
31 licensed and in good standing as public accountants in a duly authorized
32 licensing jurisdiction.
33 § 15. Subdivision (q) of section 121-1500 of the partnership law, as
34 separately amended by chapters 420 and 676 of the laws of 2002, is
35 amended to read as follows:
36 (q) Each partner of a registered limited liability partnership formed
37 to provide medical services in this state must be licensed pursuant to
38 article 131 of the education law to practice medicine in this state and
39 each partner of a registered limited liability partnership formed to
40 provide dental services in this state must be licensed pursuant to arti-
41 cle 133 of the education law to practice dentistry in this state. Each
42 partner of a registered limited liability partnership formed to provide
43 veterinary services in this state must be licensed pursuant to article
44 135 of the education law to practice veterinary medicine in this state.
45 Each partner of a registered limited liability partnership formed to
46 provide professional engineering, land surveying, architectural and/or
47 landscape architectural services in this state must be licensed pursuant
48 to article 145, article 147 and/or article 148 of the education law to
49 practice one or more of such professions in this state. Each partner of
50 a registered limited liability partnership formed to provide licensed
51 clinical social work services in this state must be licensed pursuant to
52 article 154 of the education law to practice clinical social work in
53 this state. Each partner of a registered limited liability partnership
54 formed to provide creative arts therapy services in this state must be
55 licensed pursuant to article 163 of the education law to practice crea-
56 tive arts therapy in this state. Each partner of a registered limited
A. 8286 22
1 liability partnership formed to provide marriage and family therapy
2 services in this state must be licensed pursuant to article 163 of the
3 education law to practice marriage and family therapy in this state.
4 Each partner of a registered limited liability partnership formed to
5 provide mental health counseling services in this state must be licensed
6 pursuant to article 163 of the education law to practice mental health
7 counseling in this state. Each partner of a registered limited liability
8 partnership formed to provide psychoanalysis services in this state must
9 be licensed pursuant to article 163 of the education law to practice
10 psychoanalysis in this state. Each partner of a registered limited
11 liability partnership formed to provide licensed public accountancy
12 services in this state who resides or provides professional accountancy
13 services in this state must be licensed pursuant to article 149 of the
14 education law to practice licensed public accountancy in this state, and
15 all partners must be licensed and in good standing as public accountants
16 in a duly authorized licensing jurisdiction.
17 § 16. Subdivision (q) of section 121-1502 of the partnership law, as
18 amended by chapter 643 of the laws of 1995, is amended to read as
19 follows:
20 (q) Each partner of a foreign limited liability partnership which
21 provides medical services in this state must be licensed pursuant to
22 article 131 of the education law to practice medicine in the state and
23 each partner of a foreign limited liability partnership which provides
24 dental services in the state must be licensed pursuant to article 133 of
25 the education law to practice dentistry in this state. Each partner of a
26 foreign limited liability partnership which provides veterinary service
27 in the state shall be licensed pursuant to article 135 of the education
28 law to practice veterinary medicine in this state. Each partner of a
29 foreign limited liability partnership which provides professional engi-
30 neering, land surveying, architectural and/or landscape architectural
31 services in this state must be licensed pursuant to article 145, article
32 147 and/or article 148 of the education law to practice one or more of
33 such professions. Each partner of a foreign limited liability partner-
34 ship which provides public accountancy services in this state who
35 resides in or provides professional accountancy services in this state
36 must be licensed pursuant to article 149 of the education law to prac-
37 tice public accountancy, and all partners must be licensed and in good
38 standing as public accountants in a duly authorized licensing jurisdic-
39 tion.
40 § 17. Subdivision (q) of section 121-1502 of the partnership law, as
41 amended by chapter 676 of the laws of 2002, is amended to read as
42 follows:
43 (q) Each partner of a foreign limited liability partnership which
44 provides medical services in this state must be licensed pursuant to
45 article 131 of the education law to practice medicine in the state and
46 each partner of a foreign limited liability partnership which provides
47 dental services in the state must be licensed pursuant to article 133 of
48 the education law to practice dentistry in this state. Each partner of a
49 foreign limited liability partnership which provides veterinary service
50 in the state shall be licensed pursuant to article 135 of the education
51 law to practice veterinary medicine in this state. Each partner of a
52 foreign limited liability partnership which provides professional engi-
53 neering, land surveying, architectural and/or landscape architectural
54 services in this state must be licensed pursuant to article 145, article
55 147 and/or article 148 of the education law to practice one or more of
56 such professions. Each partner of a foreign limited liability partner-
A. 8286 23
1 ship which provides creative arts therapy services in this state must be
2 licensed pursuant to article 163 of the education law to practice crea-
3 tive arts therapy in this state. Each partner of a foreign limited
4 liability partnership which provides marriage and family therapy
5 services in this state must be licensed pursuant to article 163 of the
6 education law to practice marriage and family therapy in this state.
7 Each partner of a foreign limited liability partnership which provides
8 mental health counseling services in this state must be licensed pursu-
9 ant to article 163 of the education law to practice mental health coun-
10 seling in this state. Each partner of a foreign limited liability part-
11 nership which provides psychoanalysis services in this state must be
12 licensed pursuant to article 163 of the education law to practice
13 psychoanalysis in this state. Each partner of a foreign limited liabil-
14 ity partnership which provides public accountancy services in this state
15 who resides in or provides professional accountancy services in this
16 state must be licensed pursuant to article 149 of the education law to
17 practice public accountancy, and all partners must be licensed and in
18 good standing as public accountants in a duly authorized licensing
19 jurisdiction.
20 § 18. This act shall take effect on the one hundred eightieth day
21 after it shall have become a law; provided, however, that paragraphs a
22 and b of subdivision 1 of section 7410 of the education law, as added by
23 section six of this act, shall take effect January 1, 2005; provided,
24 however, that sections eight through eleven of this act shall take
25 effect September 1, 2004; provided, however, that in the event chapter
26 420 of the laws of 2002 takes effect before chapter 676 of the laws of
27 2002 section eight-a of this act shall take effect on the same date as
28 section 2 of chapter 420 of the laws of 2002, as amended whenupon such
29 date sections eight and eight-b of this act shall expire and be deemed
30 repealed, and provided further that in the event that chapter 676 of the
31 laws of 2002 becomes effective before chapter 420 of the laws of 2002
32 then section eight-b of this act shall take effect on the same date as
33 section 13 of chapter 676 of the laws of 2002 whenupon such date
34 sections eight and eight-a of this act shall expire and be deemed
35 repealed, and provided further, that section eight-c of this act shall
36 take effect on the same date as section 2 of chapter 420 or section 13
37 of chapter 676 of the laws of 2002 takes effect, whichever date is later
38 whenupon such date sections eight, eight-a and eight-b of this act shall
39 expire and be deemed repealed; provided, however, that in the event
40 chapter 420 of the laws of 2002 takes effect before chapter 676 of the
41 laws of 2002 section eight-e of this act shall take effect on the same
42 date as section 4 of chapter 420 of the laws of 2002, as amended whenu-
43 pon such date sections eight-d and eight-f of this act shall expire and
44 be deemed repealed, and provided further that in the event that chapter
45 676 of the laws of 2002 becomes effective before chapter 420 of the laws
46 of 2002 then section eight-f of this act shall take effect on the same
47 date as section 15 of chapter 676 of the laws of 2002 whenupon such date
48 sections eight-d and eight-e of this act shall expire and be deemed
49 repealed, and provided further, that section eight-g of this act shall
50 take effect on the same date as section 4 of chapter 420 or section 15
51 of chapter 676 of the laws of 2002 takes effect, whichever date is later
52 whenupon such date sections eight-d, eight-e and eight-f of this act
53 shall expire and be deemed repealed; provided, however, that in the
54 event chapter 420 of the laws of 2002 takes effect before chapter 676 of
55 the laws of 2002 section thirteen of this act shall take effect on the
56 same date as section 5 of chapter 420 of the laws of 2002, as amended
A. 8286 24
1 whenupon such date sections twelve and fourteen of this act shall expire
2 and be deemed repealed, and provided further that in the event that
3 chapter 676 of the laws of 2002 becomes effective before chapter 420 of
4 the laws of 2002 then section fourteen of this act shall take effect on
5 the same date as section 16 of chapter 676 of the laws of 2002 whenupon
6 such date sections twelve and thirteen of this act shall expire and be
7 deemed repealed, and provided further, that section fifteen of this act
8 shall take effect on the same date as section 5 of chapter 420 or
9 section 16 of chapter 676 of the laws of 2002 takes effect, whichever
10 date is later whenupon such date sections twelve, thirteen and fourteen
11 of this act shall expire and be deemed repealed; provided, however, that
12 the amendments to subdivision (q) of section 121-1502 of the partnership
13 law, made by section seventeen of this act, shall take effect on the
14 same date as section 17 of chapter 676 of the laws of 2002, as amended,
15 takes effect.