1. (1) A firm that holds a valid license, registration, or permit in another state shall register with the department if the firm offers to engage or engages in the practice of public accountancy pursuant to subdivision 1 or 2 of section 7401 of the Education Law.
2. (2) A firm that holds a valid license, registration, or permit in another state that is not required to register with the department pursuant to paragraph (1) of this subdivision, including those out-of-state firms that use the title "certified public accountant" or "certified public accountants" or the designation "CPA" or "CPAs" but do not have an office in New York, may practice in this State without a firm registration with the department, if the firm's practice is limited to the practice of public accountancy pursuant to subdivision 3 of section 7401 of the Education Law.

3. (3) A firm may register and perform services pursuant to this subdivision only if:

   1. (i) at least one partner of a partnership or limited liability partnership, member of a limited liability company or shareholder of a professional service corporation or the sole proprietor is licensed as a certified public accountant engaged within the United States in the practice of public accountancy and is in good standing as a certified public accountant of one or more of the states of the United States;
   2. (ii) the firm complies with the department's mandatory peer review program pursuant to section 7410 of the Education Law; and

   3. (iii) the services are performed by an individual who is licensed and in good standing as a certified public accountant of one or more states of the Unites States.

      (b) Practice by certain out-of-state individuals.

4. (1) An individual who holds a certificate or license as a certified public accountant issued by another state, who is in good standing in the state where certified or licensed, and whose principal place of business is not in this State may practice public accountancy in this State without obtaining a license pursuant to section 7404 of the Education Law, if:

   1. (i) the department has determined that the other state has education, examination, and experience requirements for certification or licensure that are substantially equivalent to or exceed the requirements for licensure in this State; or
   2. (ii) the department has verified that the individual possesses licensure qualifications that are substantially equivalent to or exceed the requirements for licensure in this State.
5. (2) Except as otherwise provided in paragraph (6) or (7) of this subdivision, an individual who meets the requirements of paragraph (1) of this subdivision and who offers or renders professional services in person or by mail, telephone, or electronic means may practice public accountancy in this State without notice to the department. An individual who wishes to practice public accountancy in this State, but does not meet the requirements of paragraph (1) of this subdivision is subject to the full licensing and registration requirements of the Education Law and of this Title.
6. (3) An individual licensee or individual practicing under this subdivision who signs or authorizes someone to sign the accountant's report on the financial statement on behalf of a firm shall meet the competency requirements set out in the professional standards for such services and as set out in section 29.10(a)(13) of this Title.
7. (4) An individual practicing under this section shall practice through a firm that is registered with the department pursuant to section 7408 of the Education Law if the individual performs any attest or compilation service as defined in section 7401-a of the Education Law.

8. (5) Each certified public accountant who practices in this State pursuant to this section and each firm that employs such certified public accountant to provide services in New York consent to all of the following as a condition of the exercise of such practice privilege:

   1. (i) 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. (ii) to comply with article 149 of the Education Law and the provisions of this Title relating to public accountancy; and
   3. (iii) 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's 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.

9. (6) In the event the license from the 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 any of the dispositions specified in subparagraph (i) or (ii) of this paragraph, the certified public accountant shall so notify the department, on a form prescribed by the department, and shall immediately cease offering to perform or performing such services in this State individually and on behalf of his or her firm, until he or she has received from the department written permission to do so:

   1. (i) the suspension or revocation of his or her license; or

   2. (ii) other disciplinary action against his or her license that arises from:

      1. (a) gross negligence, recklessness or intentional wrongdoing relating to the practice of public accountancy; or
      2. (b) fraud or misappropriation of funds relating to the practice of public accountancy; or
      3. (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.

10. (7) Any certified public accountant who, within the seven years immediately preceding the date on which he or she wishes to practice in New York, has been subject to any of the actions specified in subparagraph (i), (ii), (iii), or (iv) of this paragraph shall so notify the department, on a form prescribed by the department, and shall not practice public accountancy in this State pursuant to Education Law section 7406(2) and this section, 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 Education Law section 6512:

    1. (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
    2. (ii) has had his or her license in another jurisdiction reinstated after a suspension or revocation of said license; or
    3. (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
    4. (iv) has been convicted of a crime or is subject to pending criminal charges in any jurisdiction.
11. (8) Notwithstanding paragraph (1) 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 Education Law section 7404, 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.

(a) Practice by certain out-of-state firms.