2023 New York Laws › EDN - Education › Title 8 - The Professions › Article 149 - Public Accountancy › 7406 - Limited Permits and Practice Privilege.

§ 7406. Limited permits and practice privilege. 1. Limited permits. On
recommendation  of  the board, the department may issue a limited permit
to an applicant of  good  moral  character,  who  is  the  holder  of  a
certificate,  license  or  degree  in  a  foreign country constituting a
recognized qualification for the performance in such country of the acts
set forth in section seventy-four hundred one of this article,  provided
the applicant has professional qualifications that are determined by the
board  to  be significantly comparable to the licensure requirements for
certified public accountancy pursuant to this article, and the applicant
resides or has a place for the regular transaction  of  business  within
the  state,  and  equal  recognition  is  granted by the foreign country
concerned to certified public accountants or public accountants licensed
in the United States. Such limited permit shall be valid for a period of
two years and may be renewed on recommendation of the board. Such permit
shall authorize the applicant to use only the title or designation under
which he or she is generally known in his or her own  country,  followed
by  the  name  of  the  country from which he or she received his or her
certificate,  license  or  degree,  notwithstanding  the  provisions  of
subdivision  two  of section seventy-four hundred eight of this article.
The fee for each limited permit and each renewal shall be established in
regulation by the board of regents.
2. Practice privilege. a. Except as otherwise provided in subparagraph
two or three of paragraph f of  this  subdivision,  a  certified  public
accountant,  licensed  by  another  state which the board of regents has
determined to have substantially equivalent certified public  accountant
licensure requirements, or whose individual licensure qualifications are
verified  by the department to be substantially equivalent to New York's
requirements, and in good standing, who intends to perform  any  of  the
services  in  subdivision  one,  two  or  three  of section seventy-four
hundred one of this article may  practice  public  accountancy  in  this
state, if the certified public accountant:
(1)  holds a valid license to practice public accountancy in the other
state, and
(2) practices public accountancy in another state that is his  or  her
principal place of business.
b. The practice privilege allows such certified public accountant, who
meets  the  requirements  of paragraph a of this subdivision to practice
public accountancy in this state.
c. An individual who has been granted practice privileges  under  this
section  who  performs  any of the services in subdivision one or two of
section seventy-four hundred one of this article may only do so  through
a  firm  which  has  obtained  a registration under section seventy-four
hundred eight of this  article.  Such  an  individual,  as  well  as  an
individual  with  a New York license who does not have a principal place
of business in New York, may provide services in  subdivision  three  of
section  seventy-four  hundred  one  of  this  article through a firm of
certified public accountants that does not have a registration  in  this
state but that holds a valid license, registration, or permit in another
state.
d.  Any  certified  public  accountant  who  practices  in  this state
pursuant to this section, and  any  firm  that  employs  such  certified
public  accountant to provide such services in New York, consents to all
of the following as  a  condition  of  the  exercise  of  such  practice
privilege:
(1)  to  the personal and subject matter jurisdiction and disciplinary
authority of the board of regents as if  the  practice  privilege  is  a
license, and an individual with a practice privilege is a licensee;
(2) to comply with this article, the rules of the board of regents and
the regulations of the commissioner; and
(3)  to  the  appointment  of  the  secretary of state or other public
official  acceptable  to  the  department,  in  the   certified   public
accountant's  state  of licensure or the state in which the firm has its
principal place of business,  as  the  certified  public  accountant  or
firm's agent upon whom process may be served in any action or proceeding
by the department against such certified public accountant or firm.
e.  For  purposes  of  this  subdivision,  the  board  of  regents may
determine  that  nationally-recognized   certified   public   accountant
licensure  requirements  are  substantially  equivalent  to  New  York's
requirements, such that an individual licensed in a state determined  to
have    licensure   requirements   substantially   equivalent   to   the
nationally-recognized CPA licensure requirements, or an individual whose
licensure qualifications are determined to be  substantially  equivalent
to  the  nationally-recognized  CPA licensure requirements, may practice
under the practice privilege pursuant to the requirements  contained  in
this subdivision.
f.  (1)  A  person  who  wishes to practice public accountancy in this
state but does  not  meet  the  requirements  of  paragraph  a  of  this
subdivision   is   subject   to  the  full  licensing  and  registration
requirements of this article.
(2) In the event the license from the other  state  of  the  certified
public accountant's principal place of business is no longer valid or in
good standing, or that the certified public accountant has had any final
disciplinary  action taken by the licensing or disciplinary authority of
any other state concerning the practice of public accountancy  that  has
resulted  in  (i) the suspension or revocation of his or her license, or
(ii) other disciplinary action against his or her  license  that  arises
from  (a)  gross  negligence,  recklessness  or  intentional  wrongdoing
relating  to  the  practice  of  public  accountancy,   (b)   fraud   or
misappropriation   of   funds   relating   to  the  practice  of  public
accountancy, or (c) preparation, publication, or dissemination of false,
fraudulent, or materially incomplete or misleading financial statements,
reports or information relating to the practice of  public  accountancy,
the  certified  public  accountant  shall  cease  offering to perform or
performing such services in this state individually and on behalf of his
or her firm, until and unless such certified public accountant  receives
written  permission from the department to resume the practice of public
accountancy in  this  state  pursuant  to  subparagraph  three  of  this
paragraph.
(3)  Any certified public accountant who, within the last seven years,
immediately preceding the date on which he or she wishes to practice  in
New  York,  (i)  has  been  the subject of any final disciplinary action
taken against him or her by the licensing or disciplinary  authority  of
any  other  jurisdiction with respect to any professional license or has
any charges of professional misconduct pending against him or her in any
other jurisdiction, or (ii) has  had  his  or  her  license  in  another
jurisdiction  reinstated  after  a  suspension  or  revocation  of  said
license, or (iii) has been denied issuance or renewal of a  professional
license  or  certificate  in any other jurisdiction for any reason other
than an inadvertent administrative error, or (iv) has been convicted  of
a  crime  or is subject to pending criminal charges in any jurisdiction,
shall so notify the department, on a form prescribed by the  department,
and  shall not practice public accountancy in this state under paragraph
a of this subdivision until he or she has received from  the  department
written permission to do so. In determining whether the certified public
accountant  shall  be  allowed to practice in this state, the department

shall follow  the  procedure  to  determine  whether  an  applicant  for
licensure  is  of  good  moral  character. Anyone failing to provide the
notice required by this paragraph shall be subject to the  personal  and
subject  matter  jurisdiction and disciplinary authority of the board of
regents as if the practice privilege is a  license,  and  an  individual
with  a  practice  privilege  is  a  licensee,  and  may be deemed to be
practicing in violation of section sixty-five  hundred  twelve  of  this
title.
g.  (1)  Notwithstanding  subparagraph  two  of  paragraph  a  of this
subdivision or any other inconsistent law or rule  to  the  contrary,  a
certified  public  accountant  licensed  by  another  state  and in good
standing who otherwise meets the practice privilege  requirements  under
this  section  and  files  an  application  for  licensure under section
seventy-four hundred four of this article may continue to practice under
such privilege for a period coterminous with the period during which his
or her application for licensure remains pending  with  the  department,
including any period after the certified public accountant establishes a
principal  place of business in New York while his or her application is
pending.
(2) Nothing in this section shall limit the applicability  of  section
seventy-four hundred seven of this article.