February 2001

UAA Bill Introduced in State Assembly

By Joanne S. Barry

ALBANY, N.Y.—Assemblyman Herman D. Farrell, Jr. (Manhattan) has introduced legislation in the State Assembly to update the current laws establishing and regulating public accountancy in New York state.

Assembly bill A.4445, introduced Feb. 8, is legislation patterned on the model Uniform Accountancy Act. The bill is essentially the same as A.8600, introduced in the last legislative session. The current CPA statute was first enacted in 1947.

Farrell is chair of the Assembly’s Ways and Means Committee. Joining Farrell in sponsoring the bill as co-prime sponsors are four other members of the Assembly leadership:

Paul A. Tokasz (Buffalo), the new majority leader,

Ronald Canestrari (Albany), the new deputy majority leader and co-chair of the Democratic Assembly Campaign Committee,

Ivan C. Lafayette (Queens), the new speaker pro tempore, and

Thomas P. DiNapoli (Nassau), co-chair of the Democratic Assembly Campaign Committee.

“The Society is honored to have great support this year among the Assembly’s leadership for our reform legislation,” stated Louis Grumet, New York State Society of CPAs executive director.

In addition to Assemblyman Felix Ortiz of the Bronx, another co-prime sponsor, this year’s UAA bill has gained a number of co-sponsors, including:

Joan Christensen (Syracuse),

Michael Cohen (Brooklyn),

Steven Englebright (Suffolk County),

Joseph Lentol (Brooklyn), who serves as chair of the Assembly’s Codes Committee,

Steven Sanders (Manhattan), who serves as chair of the Assembly’s Education Committee,

Ronald C. Tocci (Westchester County), who serves as chair of the Assembly’s Veterans Affairs Committee,

Albert Vann (Brooklyn), who serves as chair of the Assembly’s committee on Corporations, Commissions, and Authorities, and

Eric Vitatiano (Staten Island), who serves as chair of the Assembly’s Committee on Governmental Employees.

At this point the bill has 14 sponsors, more than double the number of sponsors obtained during the previous legislative session.

“This showing of support demonstrates that the Assembly is hearing the Society’s message that the statutes governing our profession must be updated to reflect the expanding scope of practice and services of CPAs,” stated Grumet.

The legislation modernizes accountancy laws, enhances interstate reciprocity for CPAs, and meets the current and future needs of the CPA profession in serving clients in a highly competitive and technology-driven marketplace. The bill proposes to—

redefine the scope of practice to include only assurance services, such as audits, reviews, compilations, and other attest engagements;

amend the current licensure requirements to require 150 hours of education and one year of experience in general accounting skills verified by a CPA;

allow for interstate practice of public accountancy through substantial equivalency;

require CPA firms that provide attest services to be registered by the State Education Department;

allow for 49 percent ownership of CPA firms by non-CPAs;

authorize CPAs to accept commissions and referral fees from nonattest clients; and

establish in state law a peer review process for CPA firms that engage in attest services.

“With this stellar lineup of sponsorship for our UAA bill, it is now important that the Society implement a grassroots effort through each chapter’s government relations directors to contact all 211 state legislators to gain support for this bill,” stated Dennis O’Leary, NYSSCPA director of government affairs.

For more information on the bill, visit the Legislative Center at www.nysscpa.org or call Dennis O’Leary at (212) 719-8418.