Cuomo Signs CPA Mobility Bill

 

New York, NY, Aug. 19, 2011 – Governor Andrew M. Cuomo on Wednesday, Aug. 17, signed into law S2628-A, which allows for cross-border practice mobility for out-of-state CPAs as long as the CPA’s home state is deemed by New York to have licensing requirements that are substantially equivalent to those in New York, as outlined in Section 23 of the Uniform Accountancy Act (UAA). The bill was sponsored by Senator Kenneth P. LaValle (R–Port Jefferson) and in the Assembly, by Assembly member Deborah J. Glick (D–Manhattan).

 

Under Section 23 substantial equivalency, if a CPA has a license in good standing from a state that utilizes CPA licensure and certification criteria outlined in the UAA—150 hours of education, a passing grade on the CPA exam and at least one year of experience—then that CPA would be qualified to practice in any state that has adopted UAA Section 23 mobility.

 

“I’m proud to say that New York is now a mobility state,” said NYSSCPA President Richard E. Piluso. “Similar legislation has been adopted in 47 other states in order to create a more uniform application of CPA licensing standards throughout the U.S. In today's global and technology-driven marketplace, more and more companies are doing business across state lines, physically and in many cases, electronically. New York is the financial capital of the world and CPA service can’t stop at state borders. Our CPAs in New York as well as CPAs throughout the country need to meet the needs of their clients across state lines and mobility enables them to do that.”

 

Three states, Georgia, Pennsylvania and Massachusetts, have already adopted provisions that barred CPAs licensed in New York and other non-mobility states from providing services in their states because they had not yet adopted mobility. Now New York CPAs will have the same access to clients in other states that CPAs licensed in mobility states already have.

 

“An email, a telephone call to New Jersey or Pennsylvania—that could be considered cross-border practice, “ Piluso said. “Consider the small practitioner who has to, on top of providing service to their clients, take care of the administrative work associated with maintaining licenses in several states. It only makes sense to remove borders, but only if consumer protections are maintained. Mobility ensures that they are. When a CPA from out-of-state practices here, they do so under New York’s strict laws and ethical standards.”

 

Under the new law, any CPA who comes into New York with the new mobility practice privilege would fall under the jurisdiction and be subject to the rules of New York State, even if the cross-border practice in question consisted of a single email. There are also strict public protection provisions that take into consideration any disciplinary action the visiting CPA has received in the past seven years. If they meet any of the criteria outlined in the bill, that CPA must notify the State Education Department (SED), by form, and cannot practice in New York until the CPA has received written permission from the SED before practicing here. If they do, they would be considered to be practicing in New York without a license, a crime in New York State.

 

“Historically, each state had its own rules, regulations, and requirements that would allow out-of-state CPAs to provide services in a visiting state, resulting in an unworkable patchwork system that was costly, inefficient, and increasingly untenable,” said NYSSCPA Executive Director Joanne S. Barry. “This law is a result of the collective voice of the CPA profession in New York State working together to do what is right for New York CPAs and the clients the profession serves, whether they are located here in New York or in another part of the country.”

 

The bill goes into effect on Nov. 15, 90 days after it was signed into law.

 

 

Representing more than 28,000 CPAs, the NYSSCPA is the oldest state accounting organization in the nation. Incorporated in 1897, the Society is a not-for-profit organization that seeks to establish and maintain high standards of integrity, honor, and character among certified public accountants. Its members are CPAs working in public firms, industry, government and education in a state that serves as the home of Wall Street and major financial institutions.

 

The New York State Society of CPAs is located at 3 Park Avenue, New York, NY 10016.   To learn more about the Society call 800-633-6320 or visit the Society’s website at www.nysscpa.org.