State Board Report

September 2011

With New York Governor Andrew M. Cuomo’s signature on August 17, New York became the 48th state to enact a law that provides for CPA inter-state mobility, as outlined in Section 23 of the Uniform Accountancy Act. The bill will go into effect on November 15, 2011, which will be 90 days after it was signed into law by the Governor.

“The recent success in NY (bringing mobility to 48 states) is a significant achievement,” NASBA Executive Vice President Ken L. Bishop observed. “But more importantly, we still have work to do in California, Hawaii and the U.S. territories. We want to re-energize our efforts to motivate these Boards. With the recent release of the mobility internet tool [ see sbr 8/11], New York’s success and the speedy acceptance of the mobility concept across the nation, we have a good story to tell those who still hesitate to join in.”

According to NASBA’s records, “Mobility has been effective in the majority of jurisdictions for the past four years without any major issues or unforeseen complications,” said Mr. Bishop. He has found the State Boards in California and in Hawaii are supportive of the efforts to adopt mobility legislation in their states, but there are some special interest groups in both jurisdictions which are hesitant to adopt mobility, and so discussions are continuing with them.

The New York legislation, as sponsored by Senator Kenneth P. LaValle (R-Port Jefferson) and Assemblywoman Deborah J. Glick (D-Manhattan), underscored the enforcement value of mobility: “Mobility would strengthen New York’s disciplinary authority by establishing under Section 7406(2)(d) that a CPA would consent to jurisdiction simply by entering the state to provide the audit or other attest or compilation services. Under mobility, New York consumers would have immediate access to the services they need from the service provider they desire. That service provider will be subject to the jurisdiction of New York regulators.”

Patricia A. Crecco, chair of the New York Board for Public Accountancy commented: “The passing of the mobility legislation in New York is a significant milestone and accomplishment as it recognizes the vast changes the profession has faced in recent years while ensuring the public interest is maintained.”

“Mobility legislation is good for businesses based in New York and for those seeking to do business in New York,” the NY Board’s Executive Secretary Daniel Dustin observed. “It assures public protection by enhancing jurisdiction in all the states with mobility. It is good for the public and business in New York.” At the end of the day, the legislation was a collaborative effort of all of the major stakeholders in the accountancy profession, including the Accountants Coalition, NY State Society of CPAs, NY Board, NY State Education Department, NASBA and AICPA, he noted.

Emergency regulations will be prepared by October 18, with the implementation date set at November 15. Prior to that time, New York’s temporary practice permits will continue to be available to those CPAs who need to come in to work in the state. The temporary practice law will be repealed as of November 15.

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