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A07613 Summary:

A07613 Actions:

A07613 Committee Votes:

Committee:HIGHER EDUCATION   Chair:Hyndman      
DATE:05/28/2025AYE/NAY:26/0  Action: Favorable refer to committee Ways and Means        
Hyndman
Aye
Smullen
Aye
Lupardo
Aye
Smith
Aye
Stirpe
Aye
Fitzpatrick
Aye
Simon
Aye
Reilly
Aye
McDonald
Aye
Miller
Aye
Bichotte Hermel
Aye
Gray
Aye
McMahon
Aye
Pirozzolo
Aye
Buttenschon
Aye
Sempolinski
Aye
Clark
Aye
Forrest
Aye
Chandler-Waterm
Aye
Seawright
Aye
Eachus
Aye
Sayegh
Aye
Reyes
Aye
Griffin
Aye
Kelles
Aye
O'Pharrow
Aye

Committee:WAYS AND MEANS   Chair:Pretlow      
DATE:06/06/2025AYE/NAY:35/0  Action: Favorable refer to committee Rules        
Pretlow
Aye
Ra
Aye
Jackson
Aye
Fitzpatrick
Aye
Colton
Aye
Hawley
Aye
Cook
Aye
Blankenbush
Aye
Benedetto
Aye
Palmesano
Aye
Weprin
Aye
Walsh
Aye
Anderson
Aye
DeStefano
Aye
Braunstein
Aye
Manktelow
Aye
McDonald
Aye
Smullen
Aye
Rozic
Aye
Giglio
Aye
Dinowitz
Aye
Lavine
Aye
Bronson
Aye
Dilan
Aye
Seawright
Aye
Hyndman
Aye
Walker
Aye
Wright
Aye
Simon
Aye
Cruz
Aye
Otis
Aye
Solages
Aye
Hunter
Aye
Epstein
Aye
Septimo
Aye

Committee:RULES   Chair:Glick      
DATE:06/09/2025AYE/NAY:25/0  Action: Favorable         
Heastie
Excused
Barclay
Aye
Pretlow
Aye
Hawley
Aye
Cook
Aye
Blankenbush
Aye
Glick
Aye
Ra
Aye
Dinowitz
Aye
Brabenec
Aye
Colton
Aye
Palmesano
Aye
Magnarelli
Excused
Reilly
Excused
Paulin
Aye
Smith
Aye
Peoples-Stokes
Aye
Jensen
Aye
Benedetto
Aye
Lavine
Aye
Lupardo
Aye
Braunstein
Aye
Davila
Excused
Hyndman
Excused
Rozic
Aye
Bronson
Aye
Hevesi
Aye
Hunter
Aye
Taylor
Aye
Cruz
Aye
Vanel
Excused

A07613 Floor Votes:

A07613 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
 submitted in accordance with Assembly Rule III, Sec 1(f)



 
BILL NUMBER: A7613B
 
SPONSOR: Peoples-Stokes

 
TITLE OF BILL:  An act to amend the education law, in relation to
clarifying the requirements for a certified public accountant
 
 
 
PURPOSE OR GENERAL IDEA OF BILL:
 
The purpose of this bill is to establish an additional pathway to CPA
licensure and enhance practice mobility.
 
 
SUMMARY OF PROVISIONS:
 
Section 1 would amend section 7404 of the education law to expand upon
education and experience requirements, including the creation of an
additional path to CPA licensure that would require a bachelor's degree,
the passage of a CPA exam and two years of professional experience.
 
Section 2 would amend section 7406 of the education law to provide that
out-of-state licensees who seek to practice in New York State must meet
certain education, experience, and examination requirements and have a
license in good standing.
 
Section 3. would provide the effective date.
 
 
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION:
 
The amendments modified provisions related to education, experience, and
the practice privilege for out-of-state licensees.
 
 
JUSTIFICATION:
 
Currently, CPA candidates must obtain 150 hours of higher education, or
a master's degree, one year of experience and passage of the CPA exam in
order to obtain a CPA license. This legislation would add an alternative
route to licensure by allowing candidates to earn a bachelors or
120-credit hours with 2 years of experience.  This change will allow
students to begin earning money sooner in their career while also avoid-
ing the cost of an additional year of college.
 
This bill will help address the shrinking pool of CPAs both in New York
and nationally, putting businesses, governmental agencies, individual
taxpayers and capital markets at risk due to a shortage of these trusted
financial professionals. Many other states are adopting this alternative
pathway, encouraging students to leave New York and to obtain their CPA
license in states that allow for the 120-hour pathway. Creating addi-
tional pathways to licensure will allow more opportunity for students to
enter the accounting profession.
 
Additionally, this bill ensures continued interstate practice mobility
for CPAs and makes it clear that as long as an out-of-state CPA has a
license in good standing and has passed the uniform CPA Examination,
they are welcome in New York without needing a reciprocal License, while
still being subject to New York's laws and regulations.

 
PRIOR LEGISLATIVE HISTORY:
 
This is new legislation.
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
 
To be determined.
 
 
EFFECTIVE DATE:
This act shall take effect twelve months after it shall have become a
law.

A07613 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         7613--B
 
                               2025-2026 Regular Sessions
 
                   IN ASSEMBLY
 
                                      April 1, 2025
                                       ___________
 
        Introduced  by  M.  of A. PEOPLES-STOKES, HYNDMAN, BUTTENSCHON, LUPARDO,
          WIEDER, CLARK, REYES, GRIFFIN, BURDICK,  McDONALD  --  read  once  and
          referred to the Committee on Higher Education -- committee discharged,
          bill  amended,  ordered  reprinted  as amended and recommitted to said
          committee -- again  reported  from  said  committee  with  amendments,
          ordered reprinted as amended and recommitted to said committee
 
        AN  ACT  to  amend  the  education  law,  in  relation to clarifying the
          requirements for a certified public accountant
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Paragraphs 2, 3 and 4 of subdivision 1 of section 7404 of
     2  the education law, as amended by chapter 651 of the laws  of  2008,  are
     3  amended to read as follows:
     4    (2)  Education:  have received an education, including a bachelor's or
     5  higher degree or a foreign equivalent  [based  on]  from  a  program  in
     6  accountancy  that  is registered by the department, or deemed comparable
     7  to a registered program as determined by the  department.  To  meet  the
     8  professional  education  requirements for licensure, the applicant shall
     9  present satisfactory evidence of completion of one of the following:
    10    a. A curriculum of at least one hundred twenty  semester  hours  in  a
    11  program  in  accountancy,  [in  accordance with the commissioner's regu-
    12  lations] provided that the applicant  shall  satisfy  the  undergraduate
    13  curriculum  semester  hour  requirements  for the specified subjects set
    14  forth in the commissioner's regulations; or
    15    b. A curriculum of at least one hundred  fifty  semester  hours  in  a
    16  program  in  accountancy,  provided that the applicant shall satisfy the
    17  curriculum semester hour requirements for  the  specified  subjects  set
    18  forth in the commissioner's regulations;
    19    (3) Experience: [have]
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11185-08-5
        A. 7613--B                          2
 
     1    Present  evidence of completion of the following experience, satisfac-
     2  tory to the board of regents and in accordance with  the  commissioner's
     3  regulations:
     4    (i)  two  years  of acceptable full-time experience, or the equivalent
     5  thereof, for an applicant who is applying for licensure on the basis  of
     6  the  education  described  in  subparagraph  a  of paragraph two of this
     7  subdivision; or
     8    (ii) one year of acceptable full-time experience,  or  the  equivalent
     9  thereof,  for an applicant who is applying for licensure on the basis of
    10  the education described in subparagraph  b  of  paragraph  two  of  this
    11  subdivision;
    12    (4)  Examination: pass a written examination satisfactory to the board
    13  and in accordance with the commissioner's regulations, provided that the
    14  required educational attainment for such examination shall not be great-
    15  er than that set out in subparagraph a of paragraph two of this subdivi-
    16  sion, and the requirement with respect to such examination  may  not  be
    17  waived;
    18    § 2. Subdivision 2 of section 7406 of the education law, as amended by
    19  chapter 456 of the laws of 2011, is amended to read as follows:
    20    2. Practice privilege. a. Except as otherwise provided in subparagraph
    21  two  or three of paragraph [f] e of this subdivision, a certified public
    22  accountant, licensed by another state [which the board  of  regents  has
    23  determined  to have substantially equivalent certified public accountant
    24  licensure requirements, or whose individual licensure qualifications are
    25  verified by the department to be substantially equivalent to New  York's
    26  requirements,  and  in good standing], who intends to perform any of the
    27  services in subdivision  one,  two  or  three  of  section  seventy-four
    28  hundred  one  of  this  article  may practice public accountancy in this
    29  state, if the certified public accountant:
    30    (1) holds a valid license to practice public accountancy which  is  in
    31  good standing in the other state, [and]
    32    (2) practices public accountancy in another state that is [his or her]
    33  such certified public accountant's principal place of business,
    34    (3)  has completed either of the professional education and experience
    35  requirements as described in paragraphs two and three of subdivision one
    36  of section seventy-four hundred four of this article, and
    37    (4) has passed the written examination described in paragraph four  of
    38  subdivision one of section seventy-four hundred four of this article.
    39    b. The practice privilege allows such certified public accountant, who
    40  meets  the  requirements  of paragraph a of this subdivision to practice
    41  public accountancy in this state.
    42    c. An individual who has been granted practice privileges  under  this
    43  section  who  performs  any of the services in subdivision one or two of
    44  section seventy-four hundred one of this article may only do so  through
    45  a  firm  which  has  obtained  a registration under section seventy-four
    46  hundred eight of this article. Such an individual, as well as  an  indi-
    47  vidual  with  a  New York license who does not have a principal place of
    48  business in New York, may  provide  services  in  subdivision  three  of
    49  section  seventy-four  hundred  one  of  this  article through a firm of
    50  certified public accountants that does not have a registration  in  this
    51  state but that holds a valid license, registration, or permit in another
    52  state.
    53    d.  Any certified public accountant who practices in this state pursu-
    54  ant to this section, and any firm that  employs  such  certified  public
    55  accountant  to provide such services in New York, consents to all of the
    56  following as a condition of the exercise of such practice privilege:
        A. 7613--B                          3
 
     1    (1) to the personal and subject matter jurisdiction  and  disciplinary
     2  authority  of  the  board  of  regents as if the practice privilege is a
     3  license, and an individual with a practice privilege is a licensee;
     4    (2) to comply with this article, the rules of the board of regents and
     5  the regulations of the commissioner; and
     6    (3) to the appointment of the secretary of state or other public offi-
     7  cial  acceptable to the department, in the certified public accountant's
     8  state of licensure or the state in which  the  firm  has  its  principal
     9  place  of  business,  as the certified public accountant or firm's agent
    10  upon whom process may be served in  any  action  or  proceeding  by  the
    11  department against such certified public accountant or firm.
    12    e.  [For purposes of this subdivision, the board of regents may deter-
    13  mine that nationally-recognized certified  public  accountant  licensure
    14  requirements  are  substantially  equivalent to New York's requirements,
    15  such that an individual licensed in a state determined to have licensure
    16  requirements substantially equivalent to the  nationally-recognized  CPA
    17  licensure  requirements, or an individual whose licensure qualifications
    18  are determined to be substantially equivalent to  the  nationally-recog-
    19  nized CPA licensure requirements, may practice under the practice privi-
    20  lege pursuant to the requirements contained in this subdivision.
    21    f.]  (1)  A  person  who wishes to practice public accountancy in this
    22  state but does not meet the requirements of paragraph a of this subdivi-
    23  sion is subject to the full licensing and registration  requirements  of
    24  this article.
    25    (2)  In  the  event  the license from the other state of the certified
    26  public accountant's principal place of business is no longer valid or in
    27  good standing, or that the certified public accountant has had any final
    28  disciplinary action taken by the licensing or disciplinary authority  of
    29  any  other  state concerning the practice of public accountancy that has
    30  resulted in (i) the suspension or revocation of [his or her] such certi-
    31  fied public accountant's license,  or  (ii)  other  disciplinary  action
    32  against  [his  or  her]  such certified public accountant's license that
    33  arises from (a) gross negligence, recklessness or intentional wrongdoing
    34  relating to the practice of public accountancy, (b) fraud  or  misappro-
    35  priation of funds relating to the practice of public accountancy, or (c)
    36  preparation,  publication,  or  dissemination  of  false, fraudulent, or
    37  materially incomplete or misleading  financial  statements,  reports  or
    38  information  relating  to the practice of public accountancy, the certi-
    39  fied public accountant shall cease offering  to  perform  or  performing
    40  such  services  in this state individually and on behalf of [his or her]
    41  such certified public accountant's firm, until and unless such certified
    42  public accountant receives written permission  from  the  department  to
    43  resume  the  practice  of  public  accountancy in this state pursuant to
    44  subparagraph three of this paragraph.
    45    (3) Any certified public accountant who, within the last seven  years,
    46  immediately  preceding  the  date  on  which  [he or she] such certified
    47  public accountant wishes to practice in  New  York,  (i)  has  been  the
    48  subject of any final disciplinary action taken against [him or her] such
    49  certified  public  accountant by the licensing or disciplinary authority
    50  of any other jurisdiction with respect to any  professional  license  or
    51  has  any charges of professional misconduct pending against [him or her]
    52  such certified public accountant in any other jurisdiction, or (ii)  has
    53  had  [his  or  her]  such certified public accountant license in another
    54  jurisdiction  reinstated  after  a  suspension  or  revocation  of  said
    55  license,  or (iii) has been denied issuance or renewal of a professional
    56  license or certificate in any other jurisdiction for  any  reason  other
        A. 7613--B                          4
 
     1  than  an inadvertent administrative error, or (iv) has been convicted of
     2  a crime or is subject to pending criminal charges in  any  jurisdiction,
     3  shall  so notify the department, on a form prescribed by the department,
     4  and  shall not practice public accountancy in this state under paragraph
     5  a of this subdivision until [he or she] such certified public accountant
     6  has received from the department written permission to do so. In  deter-
     7  mining whether the certified public accountant shall be allowed to prac-
     8  tice  in this state, the department shall follow the procedure to deter-
     9  mine whether an applicant for licensure  is  of  good  moral  character.
    10  Anyone failing to provide the notice required by this paragraph shall be
    11  subject to the personal and subject matter jurisdiction and disciplinary
    12  authority  of  the  board  of  regents as if the practice privilege is a
    13  license, and an individual with a practice privilege is a licensee,  and
    14  may  be  deemed  to  be  practicing  in  violation of section sixty-five
    15  hundred twelve of this title.
    16    [g.] f. (1) Notwithstanding subparagraph two of paragraph  a  of  this
    17  subdivision  or  any  other  inconsistent law or rule to the contrary, a
    18  certified public accountant licensed by another state and in good stand-
    19  ing who otherwise meets the practice privilege requirements  under  this
    20  section  and  files  an application for licensure under section seventy-
    21  four hundred four of this article may continue to  practice  under  such
    22  privilege  for a period coterminous with the period during which [his or
    23  her]  such  certified  public  accountant's  application  for  licensure
    24  remains  pending  with  the  department,  including any period after the
    25  certified public accountant establishes a principal place of business in
    26  New York while [his or her] such certified public accountant's  applica-
    27  tion is pending.
    28    (2)  Nothing  in this section shall limit the applicability of section
    29  seventy-four hundred seven of this article.
    30    § 3. This act shall take effect twelve  months  after  it  shall  have
    31  become a law.