S04935-A
STATE OF NEW YORK
________________________________________________________________________
4935--A
2003-2004 Regular Sessions
IN SENATE
April 30, 2003
___________
Introduced by Sen. LAVALLE -- (at request of the Education Department)
-- read twice and ordered printed, and when printed to be committed to
the Committee on Higher Education -- recommitted to the Committee on
Higher Education in accordance with Senate Rule 6, sec. 8 -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee
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/or compilation
17 services, as defined in section seventy-four hundred one-a of this arti-
18 cle;
19 b. as an incident to the services described in paragraph a of this
20 subdivision, rendering services to clients, including employers, in any
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13772-04-4
S. 4935--A 2
1 or all matters relating to accounting concepts and to the recording,
2 presentation, or certification of financial information or data; or
3 c. offering to perform or performing for other persons one or more
4 types of services, exclusive of services within paragraphs a and b of
5 this subdivision, involving the use of professional skills or competen-
6 cies of the licensed accountant, including professional services
7 rendered to one's 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 registered
49 limited liability partnership, a New York registered foreign limited
50 partnership, or any other form of organization that is lawfully engaged
51 in the practice of public accountancy.
52 5. "Principal place of business in New York" means that a person main-
53 tains an actual place of business in this state or provides or reason-
54 ably expects that he or she may provide, more hours of professional
55 services to clients within this state, including employers, than to
56 clients in any other single jurisdiction outside of this state or a
S. 4935--A 3
1 substantially equal number of hours in all jurisdictions. A person who
2 actually provided more hours of professional services to clients in this
3 state in the prior calendar year than in any other jurisdiction and
4 maintains an actual place of business in this state in the current year,
5 shall be deemed to continue to have a principal place of business in New
6 York during such current year.
7 6. "Principal place of business is not in this state" means not having
8 a principal place of business in New York, as defined in subdivision
9 five of this section.
10 7. "Public accountant" means any person who has received a license
11 from the department for the practice of public accountancy.
12 § 3. Section 7402 of the education law, as amended by chapter 994 of
13 the laws of 1971, is amended to read as follows:
14 § 7402. Practice of public accountancy and use of title "certified
15 public accountant" or "public accountant". 1. Only a person licensed or
16 otherwise authorized to practice under this article shall practice
17 public accountancy and use the title "certified public accountant" or
18 the designation ["C.P.A."] "CPA" or "public accountant" or any other
19 derivative or designation provided in section seventy-four hundred eight
20 of this article.
21 2. Except as otherwise specifically authorized pursuant to the
22 provisions of subdivision two of section seventy-four hundred one of
23 this article, only a certified public accountant or public accountant
24 or person otherwise authorized or exempted pursuant to this article
25 shall engage in the practice of public accountancy as defined in para-
26 graphs a and b of subdivision one of section seventy-four hundred one of
27 this article, provided that such person may engage in such practice in a
28 firm registered pursuant to section seventy-four hundred eight of this
29 article.
30 § 4. Section 7408 of the education law, as added by chapter 987 of the
31 laws of 1971, the opening paragraph of subdivision 1 and subdivision 2
32 as amended by chapter 994 of the laws of 1971, and paragraph e of subdi-
33 vision 1 as amended by chapter 62 of the laws of 1989, is amended to
34 read as follows:
35 § 7408. Special provisions. 1. Nothing contained in this article
36 shall be deemed to prohibit two or more certified public accountants or
37 two or more public accountants, or any combination thereof, from forming
38 a [partnership; provided, however, that no partnership] firm.
39 2. No firm shall use the words "certified public accountant" or
40 "certified public accountants" or the letters ["C.P.A.'s"] "CPA" or
41 "CPAs" in connection with its name unless the sole proprietor or each
42 partner, member or shareholder of such [partnership] firm, resident or
43 engaged within the United States in practice is in good standing as a
44 certified public accountant of one or more of the states or political
45 subdivisions of the United States, and the sole proprietor or each part-
46 ner, member or shareholder thereof [resident or engaged in practice
47 within] whose principal place of business is in the state is licensed
48 under this article.
49 a. A registration shall be issued to a [partnership] firm upon payment
50 of the fee prescribed by the commissioner upon application showing that:
51 (1) At least one partner, member or shareholder of such [partnership]
52 firm or the sole proprietorship is licensed under this article and his
53 or her license to practice is not currently suspended, annulled or
54 revoked in any jurisdiction and he or she is regularly engaged in prac-
55 tice on behalf of the [partnership] firm within the state;
S. 4935--A 4
1 (2) The [partnership] firm, other than a sole proprietorship, consists
2 of at least two present [members] partners, members or shareholders;
3 [and]
4 (3) The [partnership] firm other than a sole proprietorship contains
5 at least as many present partners, members or shareholders as the total
6 number of names in the firm name, or, where the word "company" or abbre-
7 viation "co." is used, the number of present partners, members or share-
8 holders shall be greater than the number of names in the firm name[.];
9 (4) Such application includes a list of the location of all offices
10 within this state, including the names of the persons in charge of such
11 offices; and
12 (5) Such application includes a list of all states or jurisdictions in
13 which the firm has applied for or holds registrations, licenses, or
14 permits as a public accounting firm and a list of any past denial, revo-
15 cation, or suspension of a registration or permit by any other state or
16 jurisdiction.
17 b. [Such registration may be revoked] The board of regents may revoke
18 such registration or take other disciplinary action after a hearing
19 conducted in accordance with the provisions of section sixty-five
20 hundred ten of this title in the same manner and to the same extent as
21 is provided with respect to individuals licensed pursuant to this arti-
22 cle, or upon proof:
23 (1) That the registration was obtained by either misrepresentation or
24 suppression of any material fact;
25 (2) That disciplinary action has been sustained by a duly authorized
26 professional disciplinary agency in any jurisdiction against the license
27 or authorization to practice of any partner [is suspended, annulled or
28 revoked in any jurisdiction], sole proprietor, member or shareholder;
29 (3) That any partner, sole proprietor, member or shareholder in such a
30 [partnership] firm is or has been engaged in the practice of public
31 accountancy in this state who is not licensed in this state; [or]
32 (4) That the [partnership] firm failed to file the written notifica-
33 tion required pursuant to paragraph d of this subdivision [of this
34 section.]; or
35 (5) That the firm failed to undergo a review of its attest or compila-
36 tion services pursuant to section seventy-four hundred ten of this arti-
37 cle at least once every three years.
38 c. Personal service on any general partner, sole proprietor, member or
39 shareholder of a notice of hearing to revoke [a partnership] the regis-
40 tration of, or take other disciplinary action against, a firm registered
41 hereunder shall be deemed service on the [partnership] firm.
42 d. A [partnership] firm registered to practice pursuant to this
43 section shall file with the department annually on or before [July first
44 of each year] the anniversary of the date of the firm's first registra-
45 tion written notification of:
46 (1) Any admission of a partner, member or shareholder,
47 (2) Any resignation, termination, retirement or death of a partner or
48 member or shareholder,
49 (3) Any termination of [partnership] a firm, [or]
50 (4) Any change in the number or location of offices within this state
51 and any change in the identity of the persons in charge of such offices,
52 or
53 (5) Any occurrence of any event or events which would eliminate as to
54 such [partnership] firm conformity with the applicable requirements of
55 this section.
S. 4935--A 5
1 e. [Partnerships] Firms shall register triennially [and pay a fee of
2 fifty dollars].
3 3. a. No firm shall engage in the practice of public accountancy as
4 defined in subdivision one of section seventy-four hundred one of this
5 article or use the title "CPA" or "CPA firm" or the title "PA" or the
6 title "PA firm" without a registration from the department. As a condi-
7 tion of registration or renewal, the firm shall demonstrate that it has
8 complied with the provisions of this article, any other applicable laws
9 and such other requirements as the department may impose, consistent
10 with this article, except that the provisions of section seventy-four
11 hundred ten of this article shall not apply on initial registration.
12 b. The commissioner shall establish in regulations a registration
13 process for certified public accountancy firms and public accountancy
14 firms, including the imposition of application and registration fees and
15 procedures to suspend or revoke a registration or take other discipli-
16 nary action for cause.
17 [2] 4. Any person shall be guilty of a class A misdemeanor who shall
18 use, in connection with the practice of public accountancy, or in any
19 manner tending to imply that he is an independent accountant or auditor,
20 the designations "chartered accountant", "certified accountant", "expert
21 accountant", "certified tax accountant", "tax accountant", "enrolled
22 accountant", "enrolled public accountant", "registered accountant",
23 "licensed accountant", "incorporated accountant", "registered public
24 accountant", "licensed public accountant", or any abbreviation thereof,
25 or the letters "C.A.", "E.A.", "C.T.A.", "T.A.", "E.P.A.", "R.A.",
26 "L.A.", "I.A.", "P.A.", "R.P.A.", or, "L.P.A.", except as provided else-
27 where in this article, or any other designation tending to imply that he
28 or she has expert knowledge in accounting or auditing. The title
29 "enrolled agent" or the designation "E.A." may only be used by individ-
30 uals so designated by the United States internal revenue service.
31 § 5. Section 7409 of the education law, as added by chapter 805 of the
32 laws of 1990, is amended to read as follows:
33 § 7409. Mandatory continuing education. 1. [(a)] a. Each licensed
34 certified public accountant and public accountant required under article
35 one hundred thirty of this [chapter] title to register triennially with
36 the department to practice in the state shall comply with the provisions
37 of the mandatory continuing education requirements except as set forth
38 in [paragraphs (b) and (c)] paragraph b of this subdivision. Certified
39 public accountants and public accountants who do not satisfy the manda-
40 tory continuing education requirements shall not practice until they
41 have met such requirements, they have paid all applicable fees, and they
42 have been issued a registration or conditional registration certificate.
43 [(b)] b. Certified public accountants and public accountants shall be
44 exempt from the mandatory continuing education requirement for the
45 triennial registration period during which they are first licensed. In
46 accordance with the intent of this section, adjustments to the mandatory
47 continuing education requirement may be granted by the department for
48 reasons of health certified by a physician, for extended active duty
49 with armed forces of the United States, or for other good cause accepta-
50 ble to the department which may prevent compliance.
51 [(c) A licensed certified public accountant and a public accountant
52 not engaged in public practice as an individual practitioner, a partner
53 of a partnership, a shareholder of a professional service corporation,
54 or an employee of such practice units, shall be exempt from the mandato-
55 ry continuing education requirement and payment of the mandatory contin-
56 uing education fee upon the filing of a statement with the department
S. 4935--A 6
1 declaring such status. Any licensee who returns to the public practice
2 of certified public accountancy or public accountancy during the trien-
3 nial registration period shall notify the department prior to reentering
4 the profession and shall pay the current mandatory continuing education
5 fee and shall meet such mandatory continuing education requirements as
6 shall be prescribed by regulations of the commissioner.]
7 2. a. During each year of the triennial registration period beginning
8 September first, [nineteen hundred ninety and ending September first,]
9 nineteen hundred ninety-three and each registration period thereafter
10 ending December thirty-first, two thousand four, an applicant for regis-
11 tration shall have the option of [(a)] (1) completing a minimum of forty
12 contact hours of acceptable formal continuing education in recognized
13 areas of study, or [(b)] (2) completing a minimum of twenty-four contact
14 hours of acceptable formal continuing education concentrated in any one
15 of the following three subject areas: auditing, accounting, or taxation.
16 b. For applicants whose triennial registration date occurs on or
17 after January first, two thousand five, for each calendar year beginning
18 with the two thousand five calendar year, an applicant for registration
19 shall have the option of (1) completing a minimum of forty contact hours
20 of acceptable formal continuing education in recognized areas of study,
21 or (2) completing a minimum of twenty-four contact hours of acceptable
22 formal continuing education concentrated in any one of such recognized
23 areas of study; provided, however, that any continuing education contact
24 hours earned between September first, two thousand four and December
25 thirty-first, two thousand four may be credited toward the minimum
26 contact hours required for the calendar year beginning January first,
27 two thousand five.
28 c. A licensee who has not satisfied the mandatory continuing education
29 requirements shall not be issued a triennial registration certificate by
30 the department and shall not practice unless and until a conditional
31 registration certificate is issued as provided in subdivision three of
32 this section. No hourly credits may be transferred from one year to a
33 subsequent year, except as provided in paragraph b of this subdivision.
34 The individual licensee shall determine the selection of courses or
35 programs of study pursuant to subdivision four of this section.
36 3. The department, in its discretion, may issue a conditional regis-
37 tration to a licensee who fails to meet the continuing education
38 requirements established in subdivision two of this section but who
39 agrees to make up any deficiencies and take any additional education
40 which the department may require. The fee for such a conditional regis-
41 tration shall be the same as, and in addition to, the fee for the trien-
42 nial registration. The duration of such conditional registration shall
43 be determined by the department. Any licensee who is notified of the
44 denial of registration for failure to submit evidence, satisfactory to
45 the department, of required continuing education and who practices
46 public accountancy without such registration, may be subject to disci-
47 plinary proceedings pursuant to section [six thousand five] sixty-five
48 hundred ten of this [chapter] title.
49 4. As used in subdivision two of this section, "acceptable formal
50 continuing education" shall mean formal programs of learning which
51 contribute to professional practice and the growth in the professional
52 knowledge and professional competence and ethics of the licensee, and
53 which meet the standards prescribed by regulations of the commissioner.
54 Recognized areas of study shall include but not be limited to: account-
55 ing, auditing, taxation, advisory services, specialized knowledge and
56 applications related to specialized industries, and such other [techni-
S. 4935--A 7
1 cal] areas appropriately related to the practice of accounting as may be
2 acceptable to the department. To fulfill the mandatory continuing educa-
3 tion requirement, programs must be taken from sponsors approved by the
4 department, pursuant to the regulations of the commissioner.
5 5. The mandatory continuing education fee shall be determined by the
6 regents, shall be payable on or before the first day of each triennial
7 registration period, and shall be paid in addition to the triennial
8 registration fee required by section [seven thousand four] seventy-four
9 hundred four of this article.
10 § 6. The education law is amended by adding five new sections 7410,
11 7411, 7412, 7413 and 7414 to read as follows:
12 § 7410. Mandatory quality review of firms. 1. a. As a condition of
13 initial registration, a firm shall submit to the department a satisfac-
14 tory quality review report of its attest and compilation services, which
15 has been conducted in accordance with a quality review program approved
16 by the department within three years immediately preceding the applica-
17 tion, unless exempted under paragraph f of subdivision three of this
18 section.
19 b. As a condition for renewing the registration of a firm registered
20 in this state, the department shall require the firm to undergo a quali-
21 ty review in accordance with this section at least once during the
22 three-year period preceding the application for renewal, unless exempted
23 by the department. The quality review shall be conducted by a review
24 team approved by the department, which shall consist of one or more
25 certified public accountants in good standing, be independent of the
26 firm reviewed, and possess such other qualifications as established by
27 the department. The department may authorize a recognized statewide or
28 national professional accounting organization, or other appropriate
29 third party, as defined in the regulations of the commissioner, to
30 administer the quality review. Approved reviewers shall file the quality
31 or system review report, and related documents such as any letter of
32 comments, letter of response and monitoring and inspection reports, with
33 the department in a manner that is identified in regulations of the
34 commissioner.
35 2. A firm shall undergo a quality review pursuant to standards and
36 procedures approved by the state board to determine, verify and report:
37 a. On the degree of compliance of the firm in performing under gener-
38 ally accepted auditing standards, and other similarly recognized techni-
39 cal standards, and
40 b. On the competence of those licensed individuals in the firm who
41 supervise attest and compilation services and sign or authorize any
42 individual in the firm to sign reports of financial statements on behalf
43 of the firm.
44 3. The standards for quality reviews promulgated by the department
45 shall include, at a minimum, procedures for:
46 a. selecting and training, if necessary, qualified reviewers;
47 b. developing criteria for assignment of reviewers to specific quali-
48 ty reviews;
49 c. ensuring the independence and impartiality of the reviewer;
50 d. evaluating the findings of the reviewer by the state board, which
51 may accept in whole or in part, reject in whole or in part, or remand
52 the findings of the reviewer;
53 e. recommending that firms or licensed individuals who are not in
54 compliance with state laws, rules or regulations or applicable profes-
55 sional standards and practice be sanctioned through referrals of the
56 matter to the department for appropriate disciplinary action;
S. 4935--A 8
1 f. developing grounds for exemption from the requirement to undergo a
2 quality review;
3 g. relying on the results and findings of quality reviews of firms
4 conducted in accordance with quality review requirements of the United
5 States securities exchange commission, federal general accounting office
6 or other appropriate third party which the department may deem substan-
7 tially equivalent to the requirements of this section; and
8 h. ensuring that all records and files relating to a quality review
9 are confidential except as provided in subdivision five of this section.
10 4. The standards of quality reviews promulgated by the department
11 shall also include criteria for assessment of quality reviews by a qual-
12 ity review oversight committee of the state board, appointed by the
13 board of regents, which shall be authorized to refer appropriate quality
14 reviews to the department for disciplinary action.
15 5. Notwithstanding any provision of law to the contrary, the records
16 submitted by a firm in accordance with this section, and the comments of
17 reviewers, the oversight committee or the state board in relation to
18 reports submitted by firms shall be confidential; provided, however,
19 that the quality or system review report shall constitute a public
20 record and shall be subject to disclosure under articles six and six-a
21 of the public officers law.
22 § 7411. Substantial equivalency; temporary practice and discipline for
23 out-of-state practice. 1. Substantial equivalency. a. An individual
24 whose principal place of business is not in this state having a valid
25 certificate or license as a certified public accountant from any state
26 or jurisdiction which the department has verified to have substantially
27 equivalent certified public accountant licensure requirements, as
28 defined in the regulations of the commissioner, shall be presumed to
29 have qualifications substantially equivalent to New York's requirements
30 and shall have all the privileges of licensees of this state without the
31 need to obtain a license under section seventy-four hundred four of this
32 article for a one-year period upon filing of the annual notification
33 required in this subdivision, unless such privilege is rejected pursuant
34 to paragraph c of this subdivision. Such individuals shall annually
35 notify the department of their intent to perform public accountant
36 services in this state under this section and pay a notification fee in
37 accordance with the regulations of the commissioner.
38 b. An individual whose principal place of business is not in this
39 state having a valid certificate or license as a certified public
40 accountant from any state or jurisdiction that the department has not
41 verified to have substantially equivalent certified public accountant
42 licensure requirements, as defined in the regulations of the commission-
43 er, may obtain from the department verification that such individual's
44 certified public accountant licensure qualifications are substantially
45 equivalent to New York's requirements, as defined in the regulations of
46 the commissioner. Such individuals shall annually notify the department
47 of their intent to perform public accountancy services in this state and
48 shall pay a notification fee in accordance with the regulations of the
49 commissioner. Upon receipt of such verification by the department, the
50 individual may perform the services defined in section seventy-four
51 hundred one of this article and shall have all the privileges of licen-
52 sees of this state without the need to obtain a license under section
53 seventy-four hundred four of this article for the one-year period speci-
54 fied in such verification. In addition, after submitting such notifica-
55 tion to the department, such individual may perform the services defined
56 in section seventy-four hundred one of this article and shall have all
S. 4935--A 9
1 privileges of licensees of this state without the need to obtain a
2 license under section seventy-four hundred four of this article until
3 such time as his or her individual licensure qualifications are verified
4 by the department to be substantially equivalent to New York's require-
5 ments or are rejected by the department as not being substantially
6 equivalent or on the grounds specified in paragraph c of this subdivi-
7 sion.
8 c. The department may reject the privilege to practice in this state
9 for an individual who would otherwise qualify for such privilege pursu-
10 ant to paragraph a or b of this subdivision, based on a determination
11 that such individual lacks good moral character, his or her certificate
12 or license to practice as a certified public accountant in such other
13 state or jurisdiction is not in good standing, or such individual has
14 been found guilty of improper professional practice or professional
15 misconduct or is the subject of pending disciplinary charges in such
16 state or jurisdiction, where the conduct upon which the disciplinary
17 action was based would, if committed in New York state, constitute prac-
18 ticing the profession beyond its authorized scope, with gross incompe-
19 tence, with gross negligence on a particular occasion, or with negli-
20 gence or incompetence on more than one occasion under the laws of New
21 York state. Upon rejection for any reason, such individual shall cease
22 performing public accountancy services in this state immediately upon
23 receipt of the notice of rejection. Where the rejection is based on lack
24 of good moral character, a certificate or license not in good standing
25 or pending disciplinary charges, the individual may request a hearing to
26 be conducted in the same manner as a hearing on denial of a license
27 based on lack of good moral character pursuant to the rules of the board
28 of regents.
29 d. Any licensee of another state or jurisdiction practicing in New
30 York under the provisions of this subdivision shall consent, as a condi-
31 tion of practicing in New York pursuant to the provisions of this
32 section:
33 (1) to the personal and subject matter jurisdiction and disciplinary
34 authority of the department and the board of regents, including the
35 imposition of any disciplinary penalty provided in section sixty-five
36 hundred eleven or section seventy-four hundred twelve of this title,
37 including but not limited to the revocation or suspension of any privi-
38 lege granted under this subdivision;
39 (2) to comply with the provisions of this chapter and the rules of the
40 board of regents and the regulations of the commissioner relating to the
41 practice of public accountancy, including but not limited to continuing
42 education requirements;
43 (3) to provide their address of record in their state or jurisdiction
44 of licensure or certification where process may be served in any action
45 or proceeding by the department or the board of regents against the
46 licensee; or, as an alternative to the submission of an address of
47 record, the address of the state board or the equivalent licensing body
48 of the state or jurisdiction which issued their license or certification
49 and has been designated by such state or jurisdiction as such individ-
50 ual's agent upon whom process may be served in any action or proceeding
51 against the licensee; and
52 (4) to report to the department any pending disciplinary charges
53 brought against the individual as a licensee in public accountancy by
54 another state or other jurisdiction, and any disposition of such charg-
55 es, within the time prescribed by the department.
S. 4935--A 10
1 2. Conversion of practice privilege. An individual practicing under
2 the provisions of subdivision one of this section acknowledges his or
3 her obligation to apply for conversion of the privilege to practice
4 public accountancy pursuant to this section to a New York state license
5 within thirty days of any time such individual establishes this state as
6 his or her principal place of business. The commissioner shall establish
7 in regulation a procedure for converting the right to practice under
8 subdivision one of this section to a license pursuant to section seven-
9 ty-four hundred four of this article.
10 3. Disciplinary action for out-of-state practice. Notwithstanding any
11 other provision of law, rule or regulation to the contrary, a licensee
12 of this state offering or rendering services or using the title "certi-
13 fied public accountant" or the designation "CPA" in another state shall
14 be subject to disciplinary action in this state for an act committed in
15 another state for which the licensee would be subject to discipline if
16 he or she was a licensee of such state, or would subject the licensee to
17 discipline in New York. Notwithstanding any provision of law, rule or
18 regulation to the contrary, the department shall investigate any
19 complaint made by the board of accountancy of another state.
20 4. Temporary practice. An individual who is the holder of a valid
21 certification or license as a certified public accountant from any state
22 or jurisdiction and who applies to the department for a license as a
23 certified public accountant under section seventy-four hundred four of
24 this article may, after submitting an application for licensure and
25 after providing evidence of qualifying continuing education, perform the
26 services defined in section seventy-four hundred one of this article
27 until the time his or her application for licensure is granted or
28 rejected.
29 § 7412. Penalties for professional misconduct. 1. Notwithstanding any
30 provision of section sixty-five hundred eleven of this title to the
31 contrary and except as otherwise provided in subdivision two of this
32 section, a certified public accountant or public accountant or firm that
33 is found guilty of professional misconduct may be subject to a fine not
34 to exceed twenty thousand dollars for a licensed individual or one
35 hundred thousand dollars for a firm, upon each specification of charges
36 of which the respondent is determined to be guilty.
37 2. Notwithstanding any provision of law to the contrary, if the
38 professional misconduct involved fraud or willful or grossly negligent
39 failure to comply with substantial provisions of federal, state or local
40 laws, rules or regulations governing the practice of public accountancy,
41 the amount of fine for each specification of professional misconduct
42 shall not exceed the greater of fifty thousand dollars for a licensed
43 individual or two hundred fifty thousand dollars for a firm.
44 § 7413. Public accountancy oversight unit. 1. There shall be estab-
45 lished within the department a public accountancy oversight unit which,
46 pursuant to the provisions of this section, shall have the duty and
47 power to administer the admission to the practice of public accountancy
48 and regulation of such practice, including investigating, prosecuting
49 and making determinations of alleged violations of professional conduct.
50 2. Notwithstanding any other provision of law, the commissioner,
51 subject to the approval of the board of regents, shall have power, in
52 conformity with their rules, to appoint and at their pleasure, remove
53 from office, such prosecutors, investigators and other persons as they
54 deem necessary, fix their titles, duties and salaries consistent with
55 sections one hundred three and one hundred four of this chapter.
S. 4935--A 11
1 § 7414. Public accountancy oversight account. Firm registration fees
2 provided for in section seventy-four hundred eight of this article,
3 notification fees provided for in section seventy-four hundred eleven of
4 this article, fines for professional misconduct pursuant to section
5 seventy-four hundred twelve of this article; and individual registration
6 fees provided for in section seventy-four hundred four of this article
7 up to an amount sufficient to support the public accountancy oversight
8 unit as described in section seventy-four hundred thirteen of this arti-
9 cle, shall be paid into the New York state public accountancy oversight
10 account pursuant to section ninety-nine-l of the state finance law.
11 § 7. The state finance law is amended by adding a new section 99-l to
12 read as follows:
13 § 99-l. New York state public accountancy oversight account. 1. There
14 is hereby established in the custody of the comptroller, a special fund
15 to be known as the "New York state public accountancy oversight
16 account".
17 2. The account shall consist of all moneys received from firm regis-
18 tration fees provided for in section seventy-four hundred eight of the
19 education law, all moneys received from notification fees provided for
20 in section seventy-four hundred eleven of the education law, all moneys
21 received from fines for professional misconduct imposed pursuant to
22 section seventy-four hundred twelve of the education law, all moneys
23 transferred to such account pursuant to law and all moneys required by
24 the provisions of this section or any other law to be paid into or cred-
25 ited to such account, including all moneys received by the account or
26 donated to it. Moneys in the account shall be kept separate and shall
27 not be commingled with any other moneys otherwise appropriated or
28 received except as provided in this section.
29 3. Moneys of the account shall be available to the department to
30 support the public accountancy oversight unit as described in section
31 seventy-four hundred thirteen of the education law.
32 4. At the end of any fiscal year, any funds not encumbered for these
33 purposes shall be reallocated for the following year for the costs of
34 carrying out the purposes of article one hundred forty-nine of the
35 education law.
36 5. Notwithstanding any other provision of law to the contrary, if
37 there are insufficient funds received during a fiscal year from the
38 sources designated in subdivision two of this section, then individual
39 registration fees provided for in section seventy-four hundred four of
40 the education law may be paid into or credited to the account up to an
41 amount sufficient to support the public accountancy oversight unit as
42 certified by the commissioner of education.
43 6. Nothing contained in this section shall prevent the department or
44 the comptroller from receiving grants, gifts or bequests for the
45 purposes of the fund as defined in this section and depositing them into
46 the account according to law.
47 § 8. Subdivision (a) of section 1203 of the limited liability company
48 law, as amended by chapter 420 of the laws of 2002, is amended to read
49 as follows:
50 (a) notwithstanding the education law or any other provision of law,
51 one or more professionals each of whom is authorized by law to render a
52 professional service within the state, or one or more professionals, at
53 least one of whom is authorized by law to render a professional service
54 within the state, may form, or cause to be formed, a professional
55 service limited liability company for pecuniary profit under this arti-
56 cle for the purpose of rendering the professional service or services as
S. 4935--A 12
1 such professionals are authorized to practice. With respect to a profes-
2 sional service limited liability company formed to provide medical
3 services as such services are defined in article 131 of the education
4 law, each member of such limited liability company must be licensed
5 pursuant to article 131 of the education law to practice medicine in
6 this state. With respect to a professional service limited liability
7 company formed to provide dental services as such services are defined
8 in article 133 of the education law, each member of such limited liabil-
9 ity company must be licensed pursuant to article 133 of the education
10 law to practice dentistry in this state. With respect to a professional
11 service limited liability company formed to provide veterinary services
12 as such services are defined in article 135 of the education law, each
13 member of such limited liability company must be licensed pursuant to
14 article 135 of the education law to practice veterinary medicine in this
15 state. With respect to a professional service limited liability company
16 formed to provide professional engineering, land surveying, architec-
17 tural and/or landscape architectural services as such services are
18 defined in article 145, article 147 and article 148 of the education
19 law, each member of such limited liability company must be licensed
20 pursuant to article 145, article 147 and/or article 148 of the education
21 law to practice one or more of such professions in this state. With
22 respect to a professional service limited liability company formed to
23 provide licensed clinical social work services as such services are
24 defined in article 154 of the education law, each member of such limited
25 liability company shall be licensed pursuant to article 154 of the
26 education law to practice licensed clinical social work in this state.
27 With respect to a professional service limited liability company formed
28 to provide public accounting services as such services are defined in
29 article 149 of the education law, each member of such limited liability
30 company who has a principal place of business in New York, as defined in
31 subdivision five of section seventy-four hundred one-a of the education
32 law, shall be licensed pursuant to article 149 of the education law to
33 practice public accountancy in this state, and all other members must be
34 licensed and in good standing as public accountants in a duly authorized
35 licensing jurisdiction. In addition to engaging in such profession or
36 professions, a professional service limited liability company may engage
37 in any other business or activities as to which a limited liability
38 company may be formed under section two hundred one of this chapter.
39 Notwithstanding any other provision of this section, a professional
40 service limited liability company (i) authorized to practice law may
41 only engage in another profession or business or activities or (ii)
42 which is engaged in a profession or other business or activities other
43 than law may only engage in the practice of law, to the extent not
44 prohibited by any other law of this state or any rule adopted by the
45 appropriate appellate division of the supreme court or the court of
46 appeals.
47 § 9. Subdivision (a) of section 1203 of the limited liability company
48 law, as separately amended by chapters 420 and 676 of the laws of 2002,
49 is amended to read as follows:
50 (a) Notwithstanding the education law or any other provision of law,
51 one or more professionals each of whom is authorized by law to render a
52 professional service within the state, or one or more professionals, at
53 least one of whom is authorized by law to render a professional service
54 within the state, may form, or cause to be formed, a professional
55 service limited liability company for pecuniary profit under this arti-
56 cle for the purpose of rendering the professional service or services as
S. 4935--A 13
1 such professionals are authorized to practice. With respect to a profes-
2 sional service limited liability company formed to provide medical
3 services as such services are defined in article 131 of the education
4 law, each member of such limited liability company must be licensed
5 pursuant to article 131 of the education law to practice medicine in
6 this state. With respect to a professional service limited liability
7 company formed to provide dental services as such services are defined
8 in article 133 of the education law, each member of such limited liabil-
9 ity company must be licensed pursuant to article 133 of the education
10 law to practice dentistry in this state. With respect to a professional
11 service limited liability company formed to provide veterinary services
12 as such services are defined in article 135 of the education law, each
13 member of such limited liability company must be licensed pursuant to
14 article 135 of the education law to practice veterinary medicine in this
15 state. With respect to a professional service limited liability company
16 formed to provide professional engineering, land surveying, architec-
17 tural and/or landscape architectural services as such services are
18 defined in article 145, article 147 and article 148 of the education
19 law, each member of such limited liability company must be licensed
20 pursuant to article 145, article 147 and/or article 148 of the education
21 law to practice one or more of such professions in this state. With
22 respect to a professional service limited liability company formed to
23 provide licensed clinical social work services as such services are
24 defined in article 154 of the education law, each member of such limited
25 liability company shall be licensed pursuant to article 154 of the
26 education law to practice licensed clinical social work in this state.
27 With respect to a professional service limited liability company formed
28 to provide creative arts therapy services as such services are defined
29 in article 163 of the education law, each member of such limited liabil-
30 ity company must be licensed pursuant to article 163 of the education
31 law to practice creative arts therapy in this state. With respect to a
32 professional service limited liability company formed to provide
33 marriage and family therapy services as such services are defined in
34 article 163 of the education law, each member of such limited liability
35 company must be licensed pursuant to article 163 of the education law to
36 practice marriage and family therapy in this state. With respect to a
37 professional service limited liability company formed to provide mental
38 health counseling services as such services are defined in article 163
39 of the education law, each member of such limited liability company must
40 be licensed pursuant to article 163 of the education law to practice
41 mental health counseling in this state. With respect to a professional
42 service limited liability company formed to provide psychoanalysis
43 services as such services are defined in article 163 of the education
44 law, each member of such limited liability company must be licensed
45 pursuant to article 163 of the education law to practice psychoanalysis
46 in this state. With respect to a professional service limited liability
47 company formed to provide public accounting services as such services
48 are defined in article 149 of the education law, each member of such
49 limited liability company who has a principal place of business in New
50 York, as defined in subdivision five of section seventy-four hundred
51 one-a of the education law, shall be licensed pursuant to article 149 of
52 the education law to practice public accountancy in this state, and all
53 other members must be licensed and in good standing as public account-
54 ants in a duly authorized licensing jurisdiction. In addition to engag-
55 ing in such profession or professions, a professional service limited
56 liability company may engage in any other business or activities as to
S. 4935--A 14
1 which a limited liability company may be formed under section two
2 hundred one of this chapter. Notwithstanding any other provision of this
3 section, a professional service limited liability company (i) authorized
4 to practice law may only engage in another profession or business or
5 activities or (ii) which is engaged in a profession or other business or
6 activities other than law may only engage in the practice of law, to the
7 extent not prohibited by any other law of this state or any rule adopted
8 by the appropriate appellate division of the supreme court or the court
9 of appeals.
10 § 10. Subdivision (a) of section 1301 of the limited liability compa-
11 ny law, as amended by chapter 420 of the laws of 2002, is amended to
12 read as follows:
13 (a) "Foreign professional service limited liability company" means a
14 professional service limited liability company, whether or not denomi-
15 nated as such, organized under the laws of a jurisdiction other than
16 this state, (i) each of whose members and managers, if any, is a profes-
17 sional authorized by law to render a professional service within this
18 state and who is or has been engaged in the practice of such profession
19 in such professional service limited liability company or a predecessor
20 entity, or will engage in the practice of such profession in the profes-
21 sional service limited liability company within thirty days of the date
22 such professional becomes a member, or each of whose members and manag-
23 ers, if any, is a professional at least one of such members is author-
24 ized by law to render a professional service within this state and who
25 is or has been engaged in the practice of such profession in such
26 professional service limited liability company or a predecessor entity,
27 or will engage in the practice of such profession in the professional
28 service limited liability company within thirty days of the date such
29 professional becomes a member, or (ii) authorized by, or holding a
30 license, certificate, registration or permit issued by the licensing
31 authority pursuant to, the education law to render a professional
32 service within this state; except that all members and managers, if any,
33 of a foreign professional service limited liability company that
34 provides health services in this state shall be licensed in this state.
35 With respect to a foreign professional service limited liability company
36 which provides veterinary services as such services are defined in arti-
37 cle 135 of the education law, each member of such foreign professional
38 service limited liability company shall be licensed pursuant to article
39 135 of the education law to practice veterinary medicine. With respect
40 to a foreign professional service limited liability company which
41 provides medical services as such services are defined in article 131 of
42 the education law, each member of such foreign professional service
43 limited liability company must be licensed pursuant to article 131 of
44 the education law to practice medicine in this state. With respect to a
45 foreign professional service limited liability company which provides
46 dental services as such services are defined in article 133 of the
47 education law, each member of such foreign professional service limited
48 liability company must be licensed pursuant to article 133 of the educa-
49 tion law to practice dentistry in this state. With respect to a foreign
50 professional service limited liability company which provides profes-
51 sional engineering, land surveying, architectural and/or landscape
52 architectural services as such services are defined in article 145,
53 article 147 and article 148 of the education law, each member of such
54 foreign professional service limited liability company must be licensed
55 pursuant to article 145, article 147 and/or article 148 of the education
56 law to practice one or more of such professions in this state. With
S. 4935--A 15
1 respect to a foreign professional service limited liability company
2 which provides licensed clinical social work services as such services
3 are defined in article 154 of the education law, each member of such
4 foreign professional service limited liability company shall be licensed
5 pursuant to article 154 of the education law to practice clinical social
6 work in this state. With respect to a foreign professional service
7 limited liability company formed to provide public accountancy services
8 as such services are defined in article 149 of the education law, each
9 member of such foreign professional service limited liability company
10 who has a principal place of business in New York, as defined in subdi-
11 vision five of section seventy-four hundred one-a of the education law
12 shall be licensed pursuant to article 149 of the education law to prac-
13 tice public accountancy in this state, and all members shall be licensed
14 and in good standing as public accountants in a duly authorized licens-
15 ing jurisdiction.
16 § 11. Subdivision (a) of section 1301 of the limited liability compa-
17 ny law, as separately amended by chapters 420 and 676 of the laws of
18 2002, is amended to read as follows:
19 (a) "Foreign professional service limited liability company" means a
20 professional service limited liability company, whether or not denomi-
21 nated as such, organized under the laws of a jurisdiction other than
22 this state, (i) each of whose members and managers, if any, is a profes-
23 sional authorized by law to render a professional service within this
24 state and who is or has been engaged in the practice of such profession
25 in such professional service limited liability company or a predecessor
26 entity, or will engage in the practice of such profession in the profes-
27 sional service limited liability company within thirty days of the date
28 such professional becomes a member, or each of whose members and manag-
29 ers, if any, is a professional at least one of such members is author-
30 ized by law to render a professional service within this state and who
31 is or has been engaged in the practice of such profession in such
32 professional service limited liability company or a predecessor entity,
33 or will engage in the practice of such profession in the professional
34 service limited liability company within thirty days of the date such
35 professional becomes a member, or (ii) authorized by, or holding a
36 license, certificate, registration or permit issued by the licensing
37 authority pursuant to, the education law to render a professional
38 service within this state; except that all members and managers, if any,
39 of a foreign professional service limited liability company that
40 provides health services in this state shall be licensed in this state.
41 With respect to a foreign professional service limited liability company
42 which provides veterinary services as such services are defined in arti-
43 cle 135 of the education law, each member of such foreign professional
44 service limited liability company shall be licensed pursuant to article
45 135 of the education law to practice veterinary medicine. With respect
46 to a foreign professional service limited liability company which
47 provides medical services as such services are defined in article 131 of
48 the education law, each member of such foreign professional service
49 limited liability company must be licensed pursuant to article 131 of
50 the education law to practice medicine in this state. With respect to a
51 foreign professional service limited liability company which provides
52 dental services as such services are defined in article 133 of the
53 education law, each member of such foreign professional service limited
54 liability company must be licensed pursuant to article 133 of the educa-
55 tion law to practice dentistry in this state. With respect to a foreign
56 professional service limited liability company which provides profes-
S. 4935--A 16
1 sional engineering, land surveying, architectural and/or landscape
2 architectural services as such services are defined in article 145,
3 article 147 and article 148 of the education law, each member of such
4 foreign professional service limited liability company must be licensed
5 pursuant to article 145, article 147 and/or article 148 of the education
6 law to practice one or more of such professions in this state. With
7 respect to a foreign professional service limited liability company
8 which provides licensed clinical social work services as such services
9 are defined in article 154 of the education law, each member of such
10 foreign professional service limited liability company shall be licensed
11 pursuant to article 154 of the education law to practice clinical social
12 work in this state. With respect to a foreign professional service
13 limited liability company which provides creative arts therapy services
14 as such services are defined in article 163 of the education law, each
15 member of such foreign professional service limited liability company
16 must be licensed pursuant to article 163 of the education law to prac-
17 tice creative arts therapy in this state. With respect to a foreign
18 professional service limited liability company which provides marriage
19 and family therapy services as such services are defined in article 163
20 of the education law, each member of such foreign professional service
21 limited liability company must be licensed pursuant to article 163 of
22 the education law to practice marriage and family therapy in this state.
23 With respect to a foreign professional service limited liability company
24 which provides mental health counseling services as such services are
25 defined in article 163 of the education law, each member of such foreign
26 professional service limited liability company must be licensed pursuant
27 to article 163 of the education law to practice mental health counseling
28 in this state. With respect to a foreign professional service limited
29 liability company which provides psychoanalysis services as such
30 services are defined in article 163 of the education law, each member of
31 such foreign professional service limited liability company must be
32 licensed pursuant to article 163 of the education law to practice
33 psychoanalysis in this state. With respect to a foreign professional
34 service limited liability company formed to provide public accountancy
35 services as such services are defined in article 149 of the education
36 law, each member of such foreign professional service limited liability
37 company who has a principal place of business in New York, as defined in
38 subdivision five of section seventy-four hundred one-a of the education
39 law shall be licensed pursuant to article 149 of the education law to
40 practice public accountancy in this state, and all members shall be
41 licensed and in good standing as public accountants in a duly authorized
42 licensing jurisdiction.
43 § 12. Subdivision (f) of section 1301 of the limited liability company
44 law, as amended by chapter 170 of the laws of 1996, is amended to read
45 as follows:
46 (f) "Professional partnership" means (1) a partnership without limited
47 partners each of whose partners is a professional authorized by law to
48 render a professional service within this state, (2) a partnership with-
49 out limited partners each of whose partners is a professional, at least
50 one of whom is authorized by law to render a professional service within
51 this state or (3) a partnership without limited partners authorized by,
52 or holding a license, certificate, registration or permit issued by the
53 licensing authority pursuant to the education law to render a profes-
54 sional service within this state; except that all partners of a profes-
55 sional partnership that provides medical services in this state must be
56 licensed pursuant to article 131 of the education law to practice medi-
S. 4935--A 17
1 cine in this state and all partners of a professional partnership that
2 provides dental services in this state must be licensed pursuant to
3 article 133 of the education law to practice dentistry in this state;
4 except that all partners of a professional partnership that provides
5 veterinary services in this state must be licensed pursuant to article
6 135 of the education law to practice veterinary medicine in this state;
7 and further except that all partners of a professional partnership that
8 provides professional engineering, land surveying, architectural, and/or
9 landscape architectural services in this state must be licensed pursuant
10 to article 145, article 147 and/or article 148 of the education law to
11 practice one or more of such professions, and further except that all
12 partners of a professional partnership formed to provide public accoun-
13 tancy services as such services are defined in article 149 of the educa-
14 tion law who have a principal place of business in New York, as defined
15 in subdivision five of section seventy-four hundred one-a of the educa-
16 tion law must be licensed pursuant to article 149 of the education law
17 to 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 § 13. The eighth undesignated paragraph of section 2 of the partner-
21 ship law, as amended by chapter 643 of the laws of 1995, is amended to
22 read as follows:
23 "Foreign limited liability partnership" means (i) any partnership
24 without limited partners operating under an agreement governed by the
25 laws of any jurisdiction, other than this state, each of whose partners
26 is a professional authorized by law to render a professional service
27 within this state and who is or has been engaged in the practice of such
28 profession in such partnership or a predecessor entity, or will engage
29 in the practice of such profession in the foreign limited liability
30 partnership within thirty days of the date of the effectiveness of the
31 notice provided for in subdivision (a) of section 121-1502 of this chap-
32 ter or each of whose partners is a professional, at least one of whom is
33 authorized by law to render a professional service within this state and
34 who is or has been engaged in the practice of such profession in such
35 partnership or a predecessor entity, or will engage in the practice of
36 such profession in the foreign limited liability partnership within
37 thirty days of the date of the effectiveness of the notice provided for
38 in subdivision (a) of section 121-1502 of this chapter, (ii) any part-
39 nership without limited partners operating under an agreement governed
40 by the laws of any jurisdiction, other than this state, authorized by,
41 or holding a license, certificate, registration or permit issued by the
42 licensing authority pursuant to, the education law to render a profes-
43 sional service within this state, which renders or intends to render
44 professional services within this state and which is denominated as a
45 registered limited liability partnership or limited liability partner-
46 ship under such laws, regardless of any difference between such laws and
47 the laws of this state, or (iii) a foreign related limited liability
48 partnership; except that all partners of a foreign limited liability
49 partnership that provides health, professional engineering, land survey-
50 ing, architectural and/or landscape architectural services in this state
51 shall be licensed in this state; and further excepted that all partners
52 of a foreign limited liability partnership formed to provide public
53 accountancy services as such services are defined in article 149 of the
54 education law who have a principal place of business in New York, as
55 defined in subdivision five of section seventy-four hundred one-a of the
56 education law shall be licensed in this state, and all partners must be
S. 4935--A 18
1 licensed and in good standing as public accountants in a duly authorized
2 licensing jurisdiction.
3 § 14. The fourteenth undesignated paragraph of section 2 of the part-
4 nership law, as added by chapter 576 of the laws of 1994, is amended to
5 read as follows:
6 "Professional partnership" means (1) a partnership without limited
7 partners each of whose partners is a professional authorized by law to
8 render a professional service within this state, (2) a partnership with-
9 out limited partners each of whose partners is a professional, at least
10 one of whom is authorized by law to render a professional service within
11 this state or (3) a partnership without limited partners authorized by,
12 or holding a license, certificate, registration or permit issued by the
13 licensing authority pursuant to the education law to render a profes-
14 sional service within this state; except that all partners of a profes-
15 sional partnership that provides medical services in this state must be
16 licensed pursuant to article 131 of the education law to practice medi-
17 cine in this state and all partners of a professional partnership that
18 provides dental services in this state must be licensed pursuant to
19 article 133 of the education law to practice dentistry in this state;
20 and further except that all partners of a professional partnership that
21 provides professional engineering, land surveying, architectural and/or
22 landscape architectural services in this state must be licensed pursuant
23 to article 145, article 147 and/or article 148 of the education law to
24 practice one or more of such professions in this state; and further
25 excepted that all partners of a foreign limited liability partnership
26 formed to provide public accountancy services as such services are
27 defined in article 149 of the education law who have a principal place
28 of business in New York, as defined in subdivision five of section
29 seventy-four hundred one-a of the education law, shall be licensed in
30 this state, and all partners shall be licensed and in good standing as
31 public accountants in a duly authorized licensing jurisdiction.
32 § 15. Subdivision (q) of section 121-1500 of the partnership law, as
33 amended by chapter 420 of the laws of 2002, is amended to read as
34 follows:
35 (q) Each partner of a registered limited liability partnership formed
36 to provide medical services in this state must be licensed pursuant to
37 article 131 of the education law to practice medicine in this state and
38 each partner of a registered limited liability partnership formed to
39 provide dental services in this state must be licensed pursuant to arti-
40 cle 133 of the education law to practice dentistry in this state. Each
41 partner of a registered limited liability partnership formed to provide
42 veterinary services in this state must be licensed pursuant to article
43 135 of the education law to practice veterinary medicine in this state.
44 Each partner of a registered limited liability partnership formed to
45 provide professional engineering, land surveying, architectural and/or
46 landscape architectural services in this state must be licensed pursuant
47 to article 145, article 147 and/or article 148 of the education law to
48 practice one or more of such professions in this state. Each partner of
49 a registered limited liability partnership formed to provide licensed
50 clinical social work services in this state must be licensed pursuant to
51 article 154 of the education law to practice clinical social work in
52 this state. Each partner of a registered limited liability partnership
53 formed to provide licensed public accountancy services as such services
54 are defined in article 149 of the education law who has a principal
55 place of business in New York, as defined in subdivision five of section
56 seventy-four hundred one-a of the education law shall be licensed pursu-
S. 4935--A 19
1 ant to article 149 of the education law to practice licensed public
2 accountancy in this state, and all partners shall be licensed and in
3 good standing as public accountants in a duly authorized licensing
4 jurisdiction.
5 § 16. Subdivision (q) of section 121-1500 of the partnership law, as
6 separately amended by chapters 420 and 676 of the laws of 2002, is
7 amended to read as follows:
8 (q) Each partner of a registered limited liability partnership formed
9 to provide medical services in this state must be licensed pursuant to
10 article 131 of the education law to practice medicine in this state and
11 each partner of a registered limited liability partnership formed to
12 provide dental services in this state must be licensed pursuant to arti-
13 cle 133 of the education law to practice dentistry in this state. Each
14 partner of a registered limited liability partnership formed to provide
15 veterinary services in this state must be licensed pursuant to article
16 135 of the education law to practice veterinary medicine in this state.
17 Each partner of a registered limited liability partnership formed to
18 provide professional engineering, land surveying, architectural and/or
19 landscape architectural services in this state must be licensed pursuant
20 to article 145, article 147 and/or article 148 of the education law to
21 practice one or more of such professions in this state. Each partner of
22 a registered limited liability partnership formed to provide licensed
23 clinical social work services in this state must be licensed pursuant to
24 article 154 of the education law to practice clinical social work in
25 this state. Each partner of a registered limited liability partnership
26 formed to provide creative arts therapy services in this state must be
27 licensed pursuant to article 163 of the education law to practice crea-
28 tive arts therapy in this state. Each partner of a registered limited
29 liability partnership formed to provide marriage and family therapy
30 services in this state must be licensed pursuant to article 163 of the
31 education law to practice marriage and family therapy in this state.
32 Each partner of a registered limited liability partnership formed to
33 provide mental health counseling services in this state must be licensed
34 pursuant to article 163 of the education law to practice mental health
35 counseling in this state. Each partner of a registered limited liability
36 partnership formed to provide psychoanalysis services in this state must
37 be licensed pursuant to article 163 of the education law to practice
38 psychoanalysis in this state. Each partner of a registered limited
39 liability partnership formed to provide licensed public accountancy
40 services as such services are defined in article 149 of the education
41 law who has a principal place of business in New York, as defined in
42 subdivision five of section seventy-four hundred one-a of the education
43 law shall be licensed pursuant to article 149 of the education law to
44 practice licensed public accountancy in this state, and all partners
45 shall be licensed and in good standing as public accountants in a duly
46 authorized licensing jurisdiction.
47 § 17. Subdivision (q) of section 121-1502 of the partnership law, as
48 amended by chapter 643 of the laws of 1995, is amended to read as
49 follows:
50 (q) Each partner of a foreign limited liability partnership which
51 provides medical services in this state must be licensed pursuant to
52 article 131 of the education law to practice medicine in the state and
53 each partner of a foreign limited liability partnership which provides
54 dental services in the state must be licensed pursuant to article 133 of
55 the education law to practice dentistry in this state. Each partner of a
56 foreign limited liability partnership which provides veterinary service
S. 4935--A 20
1 in the state shall be licensed pursuant to article 135 of the education
2 law to practice veterinary medicine in this state. Each partner of a
3 foreign limited liability partnership which provides professional engi-
4 neering, land surveying, architectural and/or landscape architectural
5 services in this state must be licensed pursuant to article 145, article
6 147 and/or article 148 of the education law to practice one or more of
7 such professions. Each partner of a foreign limited liability partner-
8 ship formed to provide public accountancy services as such services are
9 defined in article 149 of the education law who has a principal place of
10 business in New York, as defined in subdivision five of section seven-
11 ty-four hundred one-a of the education law shall be licensed pursuant to
12 article 149 of the education law to practice public accountancy, and all
13 partners shall be licensed and in good standing as public accountants in
14 a duly authorized licensing jurisdiction.
15 § 18. Subdivision (q) of section 121-1502 of the partnership law, as
16 amended by chapter 676 of the laws of 2002, is amended to read as
17 follows:
18 (q) Each partner of a foreign limited liability partnership which
19 provides medical services in this state must be licensed pursuant to
20 article 131 of the education law to practice medicine in the state and
21 each partner of a foreign limited liability partnership which provides
22 dental services in the state must be licensed pursuant to article 133 of
23 the education law to practice dentistry in this state. Each partner of a
24 foreign limited liability partnership which provides veterinary service
25 in the state shall be licensed pursuant to article 135 of the education
26 law to practice veterinary medicine in this state. Each partner of a
27 foreign limited liability partnership which provides professional engi-
28 neering, land surveying, architectural and/or landscape architectural
29 services in this state must be licensed pursuant to article 145, article
30 147 and/or article 148 of the education law to practice one or more of
31 such professions. Each partner of a foreign limited liability partner-
32 ship which provides creative arts therapy services in this state must be
33 licensed pursuant to article 163 of the education law to practice crea-
34 tive arts therapy in this state. Each partner of a foreign limited
35 liability partnership which provides marriage and family therapy
36 services in this state must be licensed pursuant to article 163 of the
37 education law to practice marriage and family therapy in this state.
38 Each partner of a foreign limited liability partnership which provides
39 mental health counseling services in this state must be licensed pursu-
40 ant to article 163 of the education law to practice mental health coun-
41 seling in this state. Each partner of a foreign limited liability part-
42 nership which provides psychoanalysis services in this state must be
43 licensed pursuant to article 163 of the education law to practice
44 psychoanalysis in this state. Each partner of a foreign limited liabil-
45 ity partnership formed to provide public accountancy services as such
46 services are defined in article 149 of the education law who has a prin-
47 cipal place of business in New York, as defined in subdivision five of
48 section seventy-four hundred one-a of the education law shall be
49 licensed pursuant to article 149 of the education law to practice public
50 accountancy, and all partners shall be licensed and in good standing as
51 public accountants in a duly authorized licensing jurisdiction.
52 § 19. This act shall take effect on the one hundred eightieth day
53 after it shall have become a law;
54 (a) provided, however, that paragraphs a and b of subdivision 1 of
55 section 7410 of the education law, as added by section six of this act,
56 shall take effect January 1, 2005;
S. 4935--A 21
1 (b) provided further, that the amendments to subdivision (a) of
2 section 1203 of the limited liability company law made by section eight
3 of this act shall remain in effect until section 13 of chapter 676 of
4 the laws of 2002 takes effect, when upon such date the provisions of
5 section nine of this act shall take effect;
6 (c) provided further, that the amendments to subdivision (a) of
7 section 1301 of the limited liability company law made by section ten of
8 this act shall remain in effect until section 15 of chapter 676 of the
9 laws of 2002 takes effect, when upon such date the provisions of section
10 eleven of this act shall take effect;
11 (d) provided further, that the amendments to subdivision (q) of
12 section 121-1500 of the partnership law made by section fifteen of this
13 act shall remain in effect until section 16 of chapter 676 of the laws
14 of 2002 takes effect, when upon such date the provisions of section
15 sixteen of this act shall take effect; and
16 (e) provided further, that the amendments to subdivision (q) of
17 section 121-1502 of the partnership law made by section seventeen of
18 this act shall remain in effect until section 17 of chapter 676 of the
19 laws of 2002 takes effect, when upon such date the provisions of section
20 eighteen of this act shall take effect.