N.Y. Education Law § 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.

* NB Effective until November 21, 2026

* 2. Practice privilege. a. Except as otherwise provided in

subparagraph two or three of paragraph e of this subdivision, a

certified public accountant, licensed by another state, 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 which is in

good standing in the other state,

(2) practices public accountancy in another state that is such

certified public accountant's principal place of business,

(3) has completed either of the professional education and experience

requirements as described in paragraphs two and three of subdivision one

of section seventy-four hundred four of this article, and

(4) has passed the written examination described in paragraph four of

subdivision one of section seventy-four hundred four of this article.

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. (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 such certified public

accountant's license, or (ii) other disciplinary action against such

certified public accountant's 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 such certified public

accountant's 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 such certified public accountant

wishes to practice in New York, (i) has been the subject of any final

disciplinary action taken against such certified public accountant 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 such certified public accountant in any other

jurisdiction, or (ii) has had such certified public accountant 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 such certified public

accountant 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.

f. (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

such certified public accountant's 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 such certified public accountant's application is pending.

(2) Nothing in this section shall limit the applicability of section

seventy-four hundred seven of this article.

* NB Effective November 21, 2026