NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7691
TITLE OF BILL: An act to amend the general business law, in relation
to exemptions for the licensure of private investigators
PURPOSE OF THE BILL:
To exempt Certified Public Accountants (CPAs) and CPA firms from the
licensure requirements of private investigators.
SUMMARY OF PROVISIONS:
Section 1 of the bill amends Section 83 of the General Business Law to
exempt CPAs and CPA firms from the licensure requirements of private
Section 2 of the bill provides that this act shall take effect imme-
Currently, New York State law regulating private investigators may inad-
vertently require a CPA conducting forensic accounting work to become
licensed as a private investigator. For example, CPAs who work as foren-
sic accountants are often brought in when financial fraud is suspected.
Investigating transactions of companies and individuals of companies
falls under their responsibility as a forensic accountant. In addition,
CPAs often conduct background checks when performing assessments of
evaluation of work around a breach of privacy or cyber security attack.
Since CPAs are already regulated by the New York State Department of
Education, they should be exempted from this dual licensure requirement
and duplicative oversight from an additional state agency. Current New
York statute explicitly provides exemptions from licensure as a private
detective for other regulated professions such as State and local Police
Officers/Detectives, attorneys, public and private insurance adjusters,
personal and commercial credit screening businesses, licensed workers'
compensation representatives, licensed Security/Fire Alarm protection
businesses as well as investigators employed exclusively by one employer
in relation to affairs of that employer and charitable organizations
maintained for the public good and not for private profit.
Other states, including Ohio, Michigan, Colorado, Virginia as well as
the District of Columbia have adopted laws to exempt CPAs from having to
register as private investigators.
This act shall take effect immediately.