S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5964

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                              March 9, 2015
                               ___________

Introduced  by  M.  of  A.  ORTIZ, FAHY -- read once and referred to the
  Committee on Higher Education

AN ACT to amend the education law, the  business  corporation  law,  the
  partnership  law and the limited liability company law, in relation to
  certified public accountants

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Section  7408 of the education law is amended by adding a
new subdivision 6 to read as follows:
  6. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, ANY FIRM ESTABLISHED TO
LAWFULLY ENGAGE IN THE PRACTICE OF PUBLIC ACCOUNTANCY PURSUANT TO  ARTI-
CLE FIFTEEN OF THE BUSINESS CORPORATION LAW, ARTICLES ONE AND EIGHT-B OF
THE  PARTNERSHIP  LAW,  OR  ARTICLES  TWELVE AND THIRTEEN OF THE LIMITED
LIABILITY COMPANY LAW SHALL BE DEEMED AUTHORIZED TO REGISTER PURSUANT TO
THIS SECTION.
  S 2. Section 1503 of the business corporation law is amended by adding
a new paragraph (h) to read as follows:
  (H) ANY FIRM ESTABLISHED FOR THE BUSINESS PURPOSE OF INCORPORATING  AS
A  PROFESSIONAL  SERVICE  CORPORATION  FORMED  TO LAWFULLY ENGAGE IN THE
PRACTICE OF PUBLIC ACCOUNTANCY, AS SUCH PRACTICE IS RESPECTIVELY DEFINED
UNDER ARTICLE ONE HUNDRED FORTY-NINE  OF  THE  EDUCATION  LAW  SHALL  BE
REQUIRED  TO  SHOW  (1)  THAT  A SIMPLE MAJORITY OF THE OWNERSHIP OF THE
FIRM, IN TERMS OF FINANCIAL INTERESTS, INCLUDING OWNERSHIP-BASED COMPEN-
SATION, AND VOTING RIGHTS HELD BY THE FIRM'S OWNERS, BELONGS TO INDIVID-
UALS LICENSED TO PRACTICE PUBLIC ACCOUNTANCY IN SOME STATE, AND (2) THAT
ALL SHAREHOLDERS OF A PROFESSIONAL SERVICE CORPORATION  WHOSE  PRINCIPAL
PLACE  OF BUSINESS IS IN THIS STATE, AND WHO ARE ENGAGED IN THE PRACTICE
OF PUBLIC ACCOUNTANCY IN THIS STATE, HOLD A VALID LICENSE  ISSUED  UNDER
SECTION  SEVENTY-FOUR  HUNDRED  FOUR  OF THE EDUCATION LAW OR ARE PUBLIC
ACCOUNTANTS LICENSED UNDER SECTION  SEVENTY-FOUR  HUNDRED  FIVE  OF  THE
EDUCATION  LAW. ALTHOUGH FIRMS MAY INCLUDE NON-LICENSEE OWNERS, THE FIRM

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03159-01-5
              

A. 5964                             2

AND ITS OWNERS MUST COMPLY WITH RULES PROMULGATED BY THE STATE BOARD FOR
PUBLIC ACCOUNTANCY.  NOTWITHSTANDING THE PROVISIONS OF THIS PARAGRAPH, A
FIRM INCORPORATED UNDER THIS SECTION MAY NOT HAVE NON-LICENSEE OWNERS IF
THE  FIRM'S  NAME  INCLUDES  THE WORDS "CERTIFIED PUBLIC ACCOUNTANT," OR
"CERTIFIED PUBLIC ACCOUNTANTS," OR THE ABBREVIATIONS  "CPA"  OR  "CPAS".
EACH  NON-LICENSEE  OWNER  OF  A  FIRM  THAT  IS INCORPORATED UNDER THIS
SECTION SHALL BE (1) A NATURAL PERSON WHO ACTIVELY PARTICIPATES  IN  THE
BUSINESS  OF  THE  FIRM  OR  ITS  AFFILIATED ENTITIES, OR (2) AN ENTITY,
INCLUDING, BUT NOT LIMITED TO,  A  PARTNERSHIP  OR  PROFESSIONAL  CORPO-
RATION,  PROVIDED  EACH  BENEFICIAL  OWNER OF AN EQUITY INTEREST IN SUCH
ENTITY IS A NATURAL PERSON WHO ACTIVELY  PARTICIPATES  IN  THE  BUSINESS
CONDUCTED  BY  THE FIRM OR ITS AFFILIATED ENTITIES. FOR PURPOSES OF THIS
SUBDIVISION, "ACTIVELY PARTICIPATE" MEANS TO PROVIDE SERVICES TO CLIENTS
OR TO OTHERWISE INDIVIDUALLY TAKE PART IN  THE  DAY-TO-DAY  BUSINESS  OR
MANAGEMENT  OF  THE FIRM. SUCH A FIRM SHALL HAVE ATTACHED TO ITS CERTIF-
ICATE OF INCORPORATION A CERTIFICATE OR CERTIFICATES  DEMONSTRATING  THE
FIRM'S  COMPLIANCE  WITH  THIS  PARAGRAPH, IN LIEU OF THE CERTIFICATE OR
CERTIFICATES REQUIRED BY SUBPARAGRAPH (II)  OF  PARAGRAPH  (B)  OF  THIS
SECTION.
  S 3. Section 1507 of the business corporation law is amended by adding
a new paragraph (c) to read as follows:
  (C)  ANY FIRM ESTABLISHED FOR THE BUSINESS PURPOSE OF INCORPORATING AS
A PROFESSIONAL SERVICE CORPORATION PURSUANT TO PARAGRAPH (H) OF  SECTION
FIFTEEN  HUNDRED  THREE  OF THIS ARTICLE MAY ISSUE SHARES TO INDIVIDUALS
WHO ARE AUTHORIZED BY LAW TO PRACTICE IN THIS STATE A  PROFESSION  WHICH
SUCH  CORPORATION  IS  AUTHORIZED  TO  PRACTICE AND WHO ARE OR HAVE BEEN
ENGAGED IN THE PRACTICE OF SUCH PROFESSION  IN  SUCH  CORPORATION  OR  A
PREDECESSOR  ENTITY,  OR WHO WILL ENGAGE IN THE PRACTICE OF SUCH PROFES-
SION IN SUCH CORPORATION WITHIN THIRTY DAYS OF THE DATE SUCH SHARES  ARE
ISSUED  AND  MAY  ALSO  ISSUE SHARES TO EMPLOYEES OF THE CORPORATION NOT
LICENSED AS CERTIFIED PUBLIC ACCOUNTANTS, PROVIDED THAT:
  (I) AT LEAST FIFTY-ONE PERCENT OF THE OUTSTANDING SHARES OF  STOCK  OF
THE CORPORATION ARE OWNED BY CERTIFIED PUBLIC ACCOUNTANTS,
  (II)  AT LEAST FIFTY-ONE PERCENT OF THE DIRECTORS ARE CERTIFIED PUBLIC
ACCOUNTANTS,
  (III) AT LEAST FIFTY-ONE PERCENT OF THE OFFICERS ARE CERTIFIED  PUBLIC
ACCOUNTANTS,
  (IV)  THE PRESIDENT, THE CHAIRPERSON OF THE BOARD OF DIRECTORS AND THE
CHIEF EXECUTIVE OFFICER OR OFFICERS ARE  CERTIFIED  PUBLIC  ACCOUNTANTS.
NO  SHAREHOLDER OF A FIRM ESTABLISHED FOR THE BUSINESS PURPOSE OF INCOR-
PORATING AS A PROFESSIONAL SERVICE CORPORATION PURSUANT TO PARAGRAPH (H)
OF SECTION FIFTEEN HUNDRED THREE OF THIS  ARTICLE  SHALL  ENTER  INTO  A
VOTING  TRUST AGREEMENT, PROXY OR ANY OTHER TYPE OF AGREEMENT VESTING IN
ANOTHER PERSON, OTHER THAN ANOTHER SHAREHOLDER OF THE SAME  CORPORATION,
THE  AUTHORITY  TO  EXERCISE  VOTING  POWER  OF ANY OR ALL OF HIS OR HER
SHARES. ALL  SHARES  ISSUED,  AGREEMENTS  MADE  OR  PROXIES  GRANTED  IN
VIOLATION OF THIS SECTION SHALL BE VOID.
  S 4. Section 1508 of the business corporation law is amended by adding
a new paragraph (c) to read as follows:
  (C)  THE  DIRECTORS AND OFFICERS OF ANY FIRM ESTABLISHED FOR THE BUSI-
NESS PURPOSE OF INCORPORATING  AS  A  PROFESSIONAL  SERVICE  CORPORATION
PURSUANT TO PARAGRAPH (H) OF SECTION FIFTEEN HUNDRED THREE OF THIS ARTI-
CLE  MAY  INCLUDE  INDIVIDUALS  WHO  ARE NOT LICENSED TO PRACTICE PUBLIC
ACCOUNTANCY, PROVIDED HOWEVER THAT AT LEAST  FIFTY-ONE  PERCENT  OF  THE
DIRECTORS, AT LEAST FIFTY-ONE PERCENT OF THE OFFICERS AND THE PRESIDENT,
THE  CHAIRPERSON OF THE BOARD OF DIRECTORS AND THE CHIEF EXECUTIVE OFFI-

A. 5964                             3

CER OR OFFICERS ARE AUTHORIZED BY  LAW  TO  PRACTICE  IN  THIS  STATE  A
PROFESSION  WHICH  SUCH  CORPORATION  IS AUTHORIZED TO PRACTICE, AND ARE
EITHER SHAREHOLDERS OF SUCH CORPORATION OR ENGAGED IN  THE  PRACTICE  OF
THEIR PROFESSIONS IN SUCH CORPORATION.
  S 5. Section 1509 of the business corporation law, as amended by chap-
ter 550 of the laws of 2011, is amended to read as follows:
S 1509. Disqualification   of   shareholders,  directors,  officers  and
          employees.
  If any shareholder, director, officer or employee  of  a  professional
service  corporation,  including  a  design  professional service corpo-
ration, OR ANY FIRM ESTABLISHED FOR THE BUSINESS PURPOSE OF  INCORPORAT-
ING  AS  A PROFESSIONAL SERVICE CORPORATION PURSUANT TO PARAGRAPH (H) OF
SECTION FIFTEEN HUNDRED THREE OF THIS ARTICLE, who  has  been  rendering
professional service to the public becomes legally disqualified to prac-
tice  his  profession  within  this state, he shall sever all employment
with, and financial interests (other than interests as a  creditor)  in,
such  corporation  forthwith or as otherwise provided in section 1510 of
this article. All provisions of law regulating the rendering of  profes-
sional  services  by  a  person  elected or appointed to a public office
shall be applicable to a shareholder, director, officer and employee  of
such  corporation  in the same manner and to the same extent as if fully
set forth herein. Such legal disqualification to practice his profession
within this state shall be deemed to constitute an irrevocable offer  by
the  disqualified  shareholder  to  sell  his shares to the corporation,
pursuant to the provisions of section 1510 of this  article  or  of  the
certificate of incorporation, by-laws or agreement among the corporation
and all shareholders, whichever is applicable. Compliance with the terms
of  such  offer  shall be specifically enforceable in the courts of this
state. A professional service corporation's failure to  enforce  compli-
ance with this provision shall constitute a ground for forfeiture of its
certificate of incorporation and its dissolution.
  S 6. Paragraph (a) of section 1511 of the business corporation law, as
amended  by  chapter 550 of the laws of 2011, is amended and a new para-
graph (c) is added to read as follows:
  (a) No shareholder of a professional service corporation [or], INCLUD-
ING a design professional service corporation, OR ANY  FIRM  ESTABLISHED
FOR  THE  BUSINESS  PURPOSE  OF  INCORPORATING AS A PROFESSIONAL SERVICE
CORPORATION PURSUANT TO PARAGRAPH (H) OF SECTION FIFTEEN  HUNDRED  THREE
OF  THIS  ARTICLE,  may  sell or transfer his shares in such corporation
except to another individual who is eligible to have  shares  issued  to
him  by  such  corporation  or except in trust to another individual who
would be eligible to receive shares if he were employed  by  the  corpo-
ration.  Nothing  herein  contained  shall  be construed to prohibit the
transfer of shares by operation of law or by court decree.  No transfer-
ee of shares by operation of law or court decree may vote the shares for
any purpose whatsoever except with respect  to  corporate  action  under
sections  909 and 1001 of this chapter. The restriction in the preceding
sentence shall not apply, however, where such transferee would be eligi-
ble to have shares issued to him if he were an employee  of  the  corpo-
ration  and,  if  there are other shareholders, a majority of such other
shareholders shall fail to redeem the shares so transferred, pursuant to
section 1510 of this article, within sixty  days  of  receiving  written
notice  of  such  transfer. Any sale or transfer, except by operation of
law or court decree or except for a corporation having only  one  share-
holder,  may be made only after the same shall have been approved by the
board of directors, or at a shareholders' meeting specially  called  for

A. 5964                             4

such  purpose  by  such  proportion,  not  less  than a majority, of the
outstanding shares as may be provided in  the  certificate  of  incorpo-
ration  or  in  the by-laws of such professional service corporation. At
such  shareholders' meeting the shares held by the shareholder proposing
to sell or transfer his shares may not  be  voted  or  counted  for  any
purpose,  unless  all  shareholders consent that such shares be voted or
counted. The certificate of incorporation or the by-laws of the  profes-
sional  service corporation, or the professional service corporation and
the shareholders by private agreement, may provide, in  lieu  of  or  in
addition  to  the foregoing provisions, for the alienation of shares and
may require the redemption or purchase of such  shares  by  such  corpo-
ration  at  prices  and  in a manner specifically set forth therein. The
existence of the restrictions on the sale  or  transfer  of  shares,  as
contained  in  this  article  and,  if applicable, in the certificate of
incorporation, by-laws, stock purchase or  stock  redemption  agreement,
shall  be  noted  conspicuously on the face or back of every certificate
for shares issued by a professional service  corporation.  Any  sale  or
transfer in violation of such restrictions shall be void.
  (C)  A FIRM ESTABLISHED FOR THE BUSINESS PURPOSE OF INCORPORATING AS A
PROFESSIONAL SERVICE CORPORATION PURSUANT TO PARAGRAPH  (H)  OF  SECTION
FIFTEEN  HUNDRED  THREE  OF  THIS  ARTICLE, SHALL PURCHASE OR REDEEM THE
SHARES OF A NON-LICENSED PROFESSIONAL SHAREHOLDER IN THE CASE OF HIS  OR
HER TERMINATION OF EMPLOYMENT WITHIN THIRTY DAYS AFTER SUCH TERMINATION.
A  FIRM  ESTABLISHED  FOR  THE  BUSINESS  PURPOSE  OF INCORPORATING AS A
PROFESSIONAL SERVICE CORPORATION PURSUANT TO PARAGRAPH  (H)  OF  SECTION
FIFTEEN HUNDRED THREE OF THIS ARTICLE, SHALL NOT BE REQUIRED TO PURCHASE
OR  REDEEM  THE  SHARES OF A TERMINATED NON-LICENSED PROFESSIONAL SHARE-
HOLDER IF SUCH SHARES, WITHIN THIRTY DAYS AFTER  SUCH  TERMINATION,  ARE
SOLD  OR  TRANSFERRED TO ANOTHER EMPLOYEE OF THE CORPORATION PURSUANT TO
THIS ARTICLE.
  S 7. Paragraph (a) of section 1512 of the business corporation law, as
amended by chapter 550 of the laws  of  2011,  is  amended  to  read  as
follows:
  (a) Notwithstanding  any other provision of law, the name of a profes-
sional service corporation,  including  a  design  professional  service
corporation  AND ANY FIRM ESTABLISHED FOR THE BUSINESS PURPOSE OF INCOR-
PORATING AS A PROFESSIONAL SERVICE CORPORATION PURSUANT TO PARAGRAPH (H)
OF SECTION FIFTEEN HUNDRED THREE OF THIS ARTICLE, may contain  any  word
which,  at  the  time  of  incorporation, could be used in the name of a
partnership practicing a profession which the corporation is  authorized
to  practice,  and  may  not contain any word which could not be used by
such a partnership.   Provided, however,  the  name  of  a  professional
service corporation may not contain the name of a deceased person unless
  (1) such  person's  name was part of the corporate name at the time of
such person's death; or
  (2) such person's name was part of the name of an existing partnership
and at least two-thirds of such partnership's partners become sharehold-
ers of the corporation.
  S 8. Section 1514 of the business corporation law is amended by adding
a new paragraph (c) to read as follows:
  (C) EACH FIRM ESTABLISHED FOR THE BUSINESS PURPOSE OF INCORPORATING AS
A PROFESSIONAL SERVICE CORPORATION PURSUANT TO PARAGRAPH (H) OF  SECTION
FIFTEEN  HUNDRED  THREE OF THIS ARTICLE SHALL, AT LEAST ONCE EVERY THREE
YEARS ON OR BEFORE THE  DATE  PRESCRIBED  BY  THE  LICENSING  AUTHORITY,
FURNISH  A  STATEMENT  TO  THE LICENSING AUTHORITY LISTING THE NAMES AND
RESIDENCE ADDRESSES OF EACH SHAREHOLDER, DIRECTOR AND  OFFICER  OF  SUCH

A. 5964                             5

CORPORATION  AND  CERTIFY  AS THE DATE OF CERTIFICATION AND AT ALL TIMES
OVER THE ENTIRE THREE YEAR PERIOD THAT:
  (I)  AT  LEAST FIFTY-ONE PERCENT OF THE OUTSTANDING SHARES OF STOCK OF
THE CORPORATION ARE AND WERE OWNED BY CERTIFIED PUBLIC ACCOUNTANTS,
  (II) AT LEAST FIFTY-ONE PERCENT OF THE DIRECTORS ARE AND  WERE  CERTI-
FIED PUBLIC ACCOUNTANTS,
  (III)  AT  LEAST FIFTY-ONE PERCENT OF THE OFFICERS ARE AND WERE CERTI-
FIED PUBLIC ACCOUNTANTS,
  (IV) THE PRESIDENT, THE CHAIRPERSON OF THE BOARD OF DIRECTORS AND  THE
CHIEF  EXECUTIVE  OFFICER  OR  OFFICERS  ARE  AND  WERE CERTIFIED PUBLIC
ACCOUNTANTS.
THE STATEMENT SHALL BE SIGNED BY THE PRESIDENT OR ANY  CERTIFIED  PUBLIC
ACCOUNTANT  VICE-PRESIDENT  AND  ATTESTED  TO  BY  THE  SECRETARY OR ANY
ASSISTANT SECRETARY OF THE CORPORATION.
  S 9. Paragraph (d) of section 1525 of the business corporation law, as
added by chapter 505 of the laws of 1983, is amended to read as follows:
  (d) "Foreign professional service corporation"  means  a  professional
service corporation, whether or not denominated as such, organized under
the  laws of a jurisdiction other than this state, all of the sharehold-
ers, directors and officers of which  are  authorized  and  licensed  to
practice  the  profession  for  which such corporation is licensed to do
business; except that all shareholders,  directors  and  officers  of  a
foreign  professional service corporation which provides health services
in this state shall be licensed in this state. NOTWITHSTANDING ANY OTHER
PROVISION OF LAW A FOREIGN PROFESSIONAL SERVICE  CORPORATION  FORMED  TO
LAWFULLY  ENGAGE IN THE PRACTICE OF PUBLIC ACCOUNTANCY, AS SUCH PRACTICE
IS RESPECTIVELY DEFINED UNDER ARTICLE  ONE  HUNDRED  FORTY-NINE  OF  THE
EDUCATION  LAW,  SHALL BE REQUIRED TO SHOW (1) THAT A SIMPLE MAJORITY OF
THE OWNERSHIP OF THE FIRM, IN TERMS OF  FINANCIAL  INTERESTS,  INCLUDING
OWNERSHIP-BASED  COMPENSATION,  AND  VOTING  RIGHTS  HELD  BY THE FIRM'S
OWNERS, BELONGS TO INDIVIDUALS LICENSED TO PRACTICE  PUBLIC  ACCOUNTANCY
IN  SOME  STATE, AND (2) THAT ALL SHAREHOLDERS OF A FOREIGN PROFESSIONAL
SERVICE CORPORATION WHOSE PRINCIPAL PLACE OF BUSINESS IS IN THIS  STATE,
AND WHO ARE ENGAGED IN THE PRACTICE OF PUBLIC ACCOUNTANCY IN THIS STATE,
HOLD  A  VALID LICENSE ISSUED UNDER SECTION SEVENTY-FOUR HUNDRED FOUR OF
THE EDUCATION LAW OR  ARE  PUBLIC  ACCOUNTANTS  LICENSED  UNDER  SECTION
SEVENTY-FOUR  HUNDRED  FIVE  OF  THE  EDUCATION  LAW. ALTHOUGH FIRMS MAY
INCLUDE NON-LICENSEE OWNERS, THE FIRM AND ITS OWNERS  MUST  COMPLY  WITH
RULES  PROMULGATED  BY THE STATE BOARD FOR PUBLIC ACCOUNTANCY.  NOTWITH-
STANDING THE FOREGOING, A FIRM REGISTERED UNDER  THIS  SECTION  MAY  NOT
HAVE  NON-LICENSEE  OWNERS IF THE FIRM'S NAME INCLUDES THE WORDS "CERTI-
FIED PUBLIC ACCOUNTANT,"  OR  "CERTIFIED  PUBLIC  ACCOUNTANTS,"  OR  THE
ABBREVIATIONS "CPA" OR "CPAS." EACH NON-LICENSEE OWNER OF A FIRM THAT IS
INCORPORATED  UNDER  THIS  SECTION  SHALL  BE  (1)  A NATURAL PERSON WHO
ACTIVELY PARTICIPATES IN THE BUSINESS OF  THE  FIRM  OR  ITS  AFFILIATED
ENTITIES, OR (2) AN ENTITY, INCLUDING, BUT NOT LIMITED TO, A PARTNERSHIP
OR PROFESSIONAL CORPORATION, PROVIDED EACH BENEFICIAL OWNER OF AN EQUITY
INTEREST IN SUCH ENTITY IS A NATURAL PERSON WHO ACTIVELY PARTICIPATES IN
THE  BUSINESS  CONDUCTED  BY  THE  FIRM  OR ITS AFFILIATED ENTITIES. FOR
PURPOSES OF THIS SUBDIVISION, "ACTIVELY PARTICIPATE"  MEANS  TO  PROVIDE
SERVICES  TO  CLIENTS  OR  TO  OTHERWISE  INDIVIDUALLY  TAKE PART IN THE
DAY-TO-DAY BUSINESS OR MANAGEMENT OF THE FIRM.
  S 10. The fourteenth undesignated paragraph of section 2 of the  part-
nership  law, as added by chapter 576 of the laws of 1994, is amended to
read as follows:

A. 5964                             6

  "Professional partnership" means (1)  a  partnership  without  limited
partners  each  of whose partners is a professional authorized by law to
render a professional service within this state, (2) a partnership with-
out limited partners each of whose partners is a professional, at  least
one of whom is authorized by law to render a professional service within
this  state or (3) a partnership without limited partners authorized by,
or holding a license, certificate, registration or permit issued by  the
licensing  authority  pursuant  to the education law to render a profes-
sional service within this state; except that all partners of a  profes-
sional  partnership that provides medical services in this state must be
licensed pursuant to article 131 of the education law to practice  medi-
cine  in  this state and all partners of a professional partnership that
provides dental services in this state  must  be  licensed  pursuant  to
article  133  of  the education law to practice dentistry in this state;
[and further] except that all partners  of  a  professional  partnership
that  provides  professional  engineering, land surveying, architectural
and/or landscape architectural services in this state must  be  licensed
pursuant to article 145, article 147 and/or article 148 of the education
law  to  practice  one  or  more  of such professions in this state; AND
FURTHER EXCEPT THAT ALL PARTNERS  OF  A  PROFESSIONAL  PARTNERSHIP  THAT
PROVIDES  PUBLIC ACCOUNTANCY SERVICES, WHOSE PRINCIPAL PLACE OF BUSINESS
IS IN THIS STATE AND WHO PROVIDE PUBLIC ACCOUNTANCY  SERVICES,  MUST  BE
LICENSED PURSUANT TO ARTICLE 149 OF THE EDUCATION LAW TO PRACTICE PUBLIC
ACCOUNTANCY  IN THIS STATE.  NOTWITHSTANDING ANY OTHER PROVISIONS OF LAW
A PROFESSIONAL PARTNERSHIP FORMED TO LAWFULLY ENGAGE IN THE PRACTICE  OF
PUBLIC ACCOUNTANCY, AS SUCH PRACTICE IS RESPECTIVELY DEFINED UNDER ARTI-
CLE  149  OF  THE  EDUCATION  LAW,  SHALL BE REQUIRED TO SHOW (1) THAT A
SIMPLE MAJORITY OF THE OWNERSHIP OF THE  FIRM,  IN  TERMS  OF  FINANCIAL
INTERESTS,  INCLUDING  OWNERSHIP-BASED  COMPENSATION,  AND VOTING RIGHTS
HELD BY THE FIRM'S OWNERS, BELONGS TO INDIVIDUALS LICENSED  TO  PRACTICE
PUBLIC  ACCOUNTANCY  IN  SOME  STATE, AND (2) THAT ALL SHAREHOLDERS OF A
PROFESSIONAL PARTNERSHIP WHOSE PRINCIPAL PLACE OF BUSINESS  IS  IN  THIS
STATE, AND WHO ARE ENGAGED IN THE PRACTICE OF PUBLIC ACCOUNTANCY IN THIS
STATE,  HOLD  A VALID LICENSE ISSUED UNDER SECTION 7404 OF THE EDUCATION
LAW OR ARE PUBLIC ACCOUNTANTS LICENSED UNDER SECTION 7405 OF THE  EDUCA-
TION  LAW.  ALTHOUGH FIRMS MAY INCLUDE NON-LICENSEE OWNERS, THE FIRM AND
ITS OWNERS MUST COMPLY WITH RULES PROMULGATED BY  THE  STATE  BOARD  FOR
PUBLIC  ACCOUNTANCY.    NOTWITHSTANDING THE FOREGOING, A FIRM REGISTERED
UNDER THIS SECTION MAY NOT HAVE NON-LICENSEE OWNERS IF THE  FIRM'S  NAME
INCLUDES  THE  WORDS "CERTIFIED PUBLIC ACCOUNTANT," OR "CERTIFIED PUBLIC
ACCOUNTANTS," OR THE ABBREVIATIONS "CPA" OR  "CPAS."  EACH  NON-LICENSEE
OWNER  OF  A FIRM THAT IS INCORPORATED UNDER THIS SECTION SHALL BE (1) A
NATURAL PERSON WHO ACTIVELY PARTICIPATES IN THE BUSINESS OF THE FIRM  OR
ITS  AFFILIATED  ENTITIES,  OR (2) AN ENTITY, INCLUDING, BUT NOT LIMITED
TO, A PARTNERSHIP OR PROFESSIONAL CORPORATION, PROVIDED EACH  BENEFICIAL
OWNER  OF  AN  EQUITY  INTEREST  IN  SUCH ENTITY IS A NATURAL PERSON WHO
ACTIVELY PARTICIPATES IN THE BUSINESS  CONDUCTED  BY  THE  FIRM  OR  ITS
AFFILIATED ENTITIES. FOR PURPOSES OF THIS SUBDIVISION, "ACTIVELY PARTIC-
IPATE" MEANS TO PROVIDE SERVICES TO CLIENTS OR TO OTHERWISE INDIVIDUALLY
TAKE PART IN THE DAY-TO-DAY BUSINESS OR MANAGEMENT OF THE FIRM.
  S  11. The fourteenth undesignated paragraph of section 2 of the part-
nership law, as amended by chapter 475 of the laws of 2014,  is  amended
to read as follows:
  "Professional  partnership"  means  (1)  a partnership without limited
partners each of whose partners is a professional authorized by  law  to
render a professional service within this state, (2) a partnership with-

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out  limited partners each of whose partners is a professional, at least
one of whom is authorized by law to render a professional service within
this state or (3) a partnership without limited partners authorized  by,
or  holding a license, certificate, registration or permit issued by the
licensing authority pursuant to the education law to  render  a  profes-
sional  service within this state; except that all partners of a profes-
sional partnership that provides medical services in this state must  be
licensed  pursuant to article 131 of the education law to practice medi-
cine in this state and all partners of a professional  partnership  that
provides  dental  services  in  this  state must be licensed pursuant to
article 133 of the education law to practice dentistry  in  this  state;
[and  further]  except  that  all partners of a professional partnership
that provides professional engineering, land surveying, geologic, archi-
tectural and/or landscape architectural services in this state  must  be
licensed  pursuant to article 145, article 147 and/or article 148 of the
education law to practice one or more of such professions in this state;
AND FURTHER EXCEPT THAT ALL PARTNERS OF A PROFESSIONAL PARTNERSHIP  THAT
PROVIDES  PUBLIC ACCOUNTANCY SERVICES, WHOSE PRINCIPAL PLACE OF BUSINESS
IS IN THIS STATE AND WHO PROVIDE PUBLIC ACCOUNTANCY  SERVICES,  MUST  BE
LICENSED PURSUANT TO ARTICLE 149 OF THE EDUCATION LAW TO PRACTICE PUBLIC
ACCOUNTANCY  IN THIS STATE.  NOTWITHSTANDING ANY OTHER PROVISIONS OF LAW
A PROFESSIONAL PARTNERSHIP FORMED TO LAWFULLY ENGAGE IN THE PRACTICE  OF
PUBLIC ACCOUNTANCY, AS SUCH PRACTICE IS RESPECTIVELY DEFINED UNDER ARTI-
CLE  149  OF  THE  EDUCATION  LAW,  SHALL BE REQUIRED TO SHOW (1) THAT A
SIMPLE MAJORITY OF THE OWNERSHIP OF THE  FIRM,  IN  TERMS  OF  FINANCIAL
INTERESTS,  INCLUDING  OWNERSHIP-BASED  COMPENSATION,  AND VOTING RIGHTS
HELD BY THE FIRM'S OWNERS, BELONGS TO INDIVIDUALS LICENSED  TO  PRACTICE
PUBLIC  ACCOUNTANCY  IN  SOME  STATE, AND (2) THAT ALL SHAREHOLDERS OF A
PROFESSIONAL PARTNERSHIP WHOSE PRINCIPAL PLACE OF BUSINESS  IS  IN  THIS
STATE, AND WHO ARE ENGAGED IN THE PRACTICE OF PUBLIC ACCOUNTANCY IN THIS
STATE,  HOLD  A VALID LICENSE ISSUED UNDER SECTION 7404 OF THE EDUCATION
LAW OR ARE PUBLIC ACCOUNTANTS LICENSED UNDER SECTION 7405 OF THE  EDUCA-
TION  LAW.  ALTHOUGH FIRMS MAY INCLUDE NON-LICENSEE OWNERS, THE FIRM AND
ITS OWNERS MUST COMPLY WITH RULES PROMULGATED BY  THE  STATE  BOARD  FOR
PUBLIC  ACCOUNTANCY.  NOTWITHSTANDING  THE  FOREGOING, A FIRM REGISTERED
UNDER THIS SECTION MAY NOT HAVE NON-LICENSEE OWNERS IF THE  FIRM'S  NAME
INCLUDES  THE  WORDS "CERTIFIED PUBLIC ACCOUNTANT," OR "CERTIFIED PUBLIC
ACCOUNTANTS," OR THE ABBREVIATIONS "CPA" OR  "CPAS."  EACH  NON-LICENSEE
OWNER  OF  A FIRM THAT IS INCORPORATED UNDER THIS SECTION SHALL BE (1) A
NATURAL PERSON WHO ACTIVELY PARTICIPATES IN THE BUSINESS OF THE FIRM  OR
ITS  AFFILIATED  ENTITIES,  OR (2) AN ENTITY, INCLUDING, BUT NOT LIMITED
TO, A PARTNERSHIP OR PROFESSIONAL CORPORATION, PROVIDED EACH  BENEFICIAL
OWNER  OF  AN  EQUITY  INTEREST  IN  SUCH ENTITY IS A NATURAL PERSON WHO
ACTIVELY PARTICIPATES IN THE BUSINESS  CONDUCTED  BY  THE  FIRM  OR  ITS
AFFILIATED ENTITIES. FOR PURPOSES OF THIS SUBDIVISION, "ACTIVELY PARTIC-
IPATE" MEANS TO PROVIDE SERVICES TO CLIENTS OR TO OTHERWISE INDIVIDUALLY
TAKE PART IN THE DAY-TO-DAY BUSINESS OR MANAGEMENT OF THE FIRM.
  S  12.  Subdivision (q) of section 121-1500 of the partnership law, as
amended by chapter 554 of the laws  of  2013,  is  amended  to  read  as
follows:
  (q)  Each partner of a registered limited liability partnership formed
to provide medical services in this state must be licensed  pursuant  to
article  131 of the education law to practice medicine in this state and
each partner of a registered limited  liability  partnership  formed  to
provide dental services in this state must be licensed pursuant to arti-
cle  133 of the education law to practice dentistry in this state.  Each

A. 5964                             8

partner of a registered limited liability partnership formed to  provide
veterinary  services  in this state must be licensed pursuant to article
135 of the education law to practice veterinary medicine in this  state.
EACH  PARTNER  OF  A  REGISTERED LIMITED LIABILITY PARTNERSHIP FORMED TO
PROVIDE PUBLIC ACCOUNTANCY SERVICES, WHOSE PRINCIPAL PLACE  OF  BUSINESS
IS  IN  THIS STATE AND WHO PROVIDES PUBLIC ACCOUNTANCY SERVICES, MUST BE
LICENSED PURSUANT TO ARTICLE 149 OF THE EDUCATION LAW TO PRACTICE PUBLIC
ACCOUNTANCY IN THIS STATE. Each partner of a registered limited  liabil-
ity partnership formed to provide professional engineering, land survey-
ing, architectural and/or landscape architectural services in this state
must be licensed pursuant to article 145, article 147 and/or article 148
of the education law to practice one or more of such professions in this
state. Each partner of a registered limited liability partnership formed
to  provide licensed clinical social work services in this state must be
licensed pursuant to article 154 of the education law to practice  clin-
ical  social  work  in  this state. Each partner of a registered limited
liability partnership formed to provide creative arts  therapy  services
in  this state must be licensed pursuant to article 163 of the education
law to practice creative arts therapy in this state. Each partner  of  a
registered  limited liability partnership formed to provide marriage and
family therapy services in this state must be licensed pursuant to arti-
cle 163 of the education law to practice marriage and family therapy  in
this  state.  Each partner of a registered limited liability partnership
formed to provide mental health counseling services in this  state  must
be  licensed  pursuant  to  article 163 of the education law to practice
mental health counseling in this state. Each  partner  of  a  registered
limited  liability partnership formed to provide psychoanalysis services
in this state must be licensed pursuant to article 163 of the  education
law  to  practice psychoanalysis in this state. Each partner of a regis-
tered limited liability partnership formed to provide  applied  behavior
analysis service in this state must be licensed or certified pursuant to
article  167  of the education law to practice applied behavior analysis
in this state.  NOTWITHSTANDING ANY OTHER PROVISIONS OF  LAW  A  LIMITED
LIABILITY  PARTNERSHIP  FORMED  TO  LAWFULLY  ENGAGE  IN THE PRACTICE OF
PUBLIC ACCOUNTANCY, AS SUCH PRACTICE IS RESPECTIVELY DEFINED UNDER ARTI-
CLE 149 OF THE EDUCATION LAW, SHALL BE  REQUIRED  TO  SHOW  (1)  THAT  A
SIMPLE  MAJORITY  OF  THE  OWNERSHIP  OF THE FIRM, IN TERMS OF FINANCIAL
INTERESTS, INCLUDING OWNERSHIP-BASED  COMPENSATION,  AND  VOTING  RIGHTS
HELD  BY  THE FIRM'S OWNERS, BELONGS TO INDIVIDUALS LICENSED TO PRACTICE
PUBLIC ACCOUNTANCY IN SOME STATE, AND (2) THAT ALL PARTNERS OF A LIMITED
LIABILITY PARTNERSHIP WHOSE PRINCIPAL  PLACE  OF  BUSINESS  IS  IN  THIS
STATE, AND WHO ARE ENGAGED IN THE PRACTICE OF PUBLIC ACCOUNTANCY IN THIS
STATE,  HOLD  A VALID LICENSE ISSUED UNDER SECTION 7404 OF THE EDUCATION
LAW OR ARE PUBLIC ACCOUNTANTS LICENSED UNDER SECTION 7405 OF THE  EDUCA-
TION  LAW.  ALTHOUGH FIRMS MAY INCLUDE NON-LICENSEE OWNERS, THE FIRM AND
ITS OWNERS MUST COMPLY WITH RULES PROMULGATED BY  THE  STATE  BOARD  FOR
PUBLIC  ACCOUNTANCY.    NOTWITHSTANDING THE FOREGOING, A FIRM REGISTERED
UNDER THIS SECTION MAY NOT HAVE NON-LICENSEE OWNERS IF THE  FIRM'S  NAME
INCLUDES  THE  WORDS "CERTIFIED PUBLIC ACCOUNTANT," OR "CERTIFIED PUBLIC
ACCOUNTANTS," OR THE ABBREVIATIONS "CPA" OR  "CPAS."  EACH  NON-LICENSEE
OWNER  OF  A FIRM THAT IS INCORPORATED UNDER THIS SECTION SHALL BE (1) A
NATURAL PERSON WHO ACTIVELY PARTICIPATES IN THE BUSINESS OF THE FIRM  OR
ITS  AFFILIATED  ENTITIES,  OR (2) AN ENTITY, INCLUDING, BUT NOT LIMITED
TO, A PARTNERSHIP OR PROFESSIONAL CORPORATION, PROVIDED EACH  BENEFICIAL
OWNER  OF  AN  EQUITY  INTEREST  IN  SUCH ENTITY IS A NATURAL PERSON WHO
ACTIVELY PARTICIPATES IN THE BUSINESS  CONDUCTED  BY  THE  FIRM  OR  ITS

A. 5964                             9

AFFILIATED ENTITIES. FOR PURPOSES OF THIS SUBDIVISION, "ACTIVELY PARTIC-
IPATE" MEANS TO PROVIDE SERVICES TO CLIENTS OR TO OTHERWISE INDIVIDUALLY
TAKE PART IN THE DAY-TO-DAY BUSINESS OR MANAGEMENT OF THE FIRM.
  S  13.  Subdivision (q) of section 121-1500 of the partnership law, as
amended by chapter 475 of the laws  of  2014,  is  amended  to  read  as
follows:
  (q)  Each partner of a registered limited liability partnership formed
to provide medical services in this state must be licensed  pursuant  to
article  131 of the education law to practice medicine in this state and
each partner of a registered limited  liability  partnership  formed  to
provide dental services in this state must be licensed pursuant to arti-
cle  133 of the education law to practice dentistry in this state.  Each
partner of a registered limited liability partnership formed to  provide
veterinary  services  in this state must be licensed pursuant to article
135 of the education law to practice veterinary medicine in this  state.
EACH  PARTNER  OF  A  REGISTERED LIMITED LIABILITY PARTNERSHIP FORMED TO
PROVIDE PUBLIC ACCOUNTANCY SERVICES, WHOSE PRINCIPAL PLACE  OF  BUSINESS
IS  IN  THIS STATE AND WHO PROVIDES PUBLIC ACCOUNTANCY SERVICES, MUST BE
LICENSED PURSUANT TO ARTICLE 149 OF THE EDUCATION LAW TO PRACTICE PUBLIC
ACCOUNTANCY IN THIS STATE. Each partner of a registered limited  liabil-
ity partnership formed to provide professional engineering, land survey-
ing,  geological  services, architectural and/or landscape architectural
services in this state must be licensed pursuant to article 145, article
147 and/or article 148 of the education law to practice one or  more  of
such  professions  in  this  state. Each partner of a registered limited
liability partnership formed to provide licensed  clinical  social  work
services  in  this state must be licensed pursuant to article 154 of the
education law to practice clinical social work in this state. Each part-
ner of a registered limited  liability  partnership  formed  to  provide
creative  arts  therapy services in this state must be licensed pursuant
to article 163 of the education law to practice creative arts therapy in
this state. Each partner of a registered limited  liability  partnership
formed  to  provide  marriage  and family therapy services in this state
must be licensed pursuant to article 163 of the education law  to  prac-
tice marriage and family therapy in this state. Each partner of a regis-
tered  limited  liability  partnership  formed  to provide mental health
counseling services in this state must be licensed pursuant  to  article
163  of  the  education law to practice mental health counseling in this
state. Each partner of a registered limited liability partnership formed
to provide psychoanalysis services in this state must be licensed pursu-
ant to article 163 of the education law to  practice  psychoanalysis  in
this  state.  Each partner of a registered limited liability partnership
formed to provide applied behavior analysis service in this  state  must
be licensed or certified pursuant to article 167 of the education law to
practice  applied  behavior  analysis in this state. NOTWITHSTANDING ANY
OTHER PROVISIONS OF  LAW  A  LIMITED  LIABILITY  PARTNERSHIP  FORMED  TO
LAWFULLY  ENGAGE IN THE PRACTICE OF PUBLIC ACCOUNTANCY, AS SUCH PRACTICE
IS RESPECTIVELY DEFINED UNDER ARTICLE 149 OF THE EDUCATION LAW, SHALL BE
REQUIRED TO SHOW (1) THAT A SIMPLE MAJORITY  OF  THE  OWNERSHIP  OF  THE
FIRM, IN TERMS OF FINANCIAL INTERESTS, INCLUDING OWNERSHIP-BASED COMPEN-
SATION, AND VOTING RIGHTS HELD BY THE FIRM'S OWNERS, BELONGS TO INDIVID-
UALS LICENSED TO PRACTICE PUBLIC ACCOUNTANCY IN SOME STATE, AND (2) THAT
ALL PARTNERS OF A LIMITED LIABILITY PARTNERSHIP WHOSE PRINCIPAL PLACE OF
BUSINESS IS IN THIS STATE, AND WHO ARE ENGAGED IN THE PRACTICE OF PUBLIC
ACCOUNTANCY  IN  THIS  STATE,  HOLD A VALID LICENSE ISSUED UNDER SECTION
7404 OF THE EDUCATION LAW  OR  ARE  PUBLIC  ACCOUNTANTS  LICENSED  UNDER

A. 5964                            10

SECTION 7405 OF THE EDUCATION LAW. ALTHOUGH FIRMS MAY INCLUDE NON-LICEN-
SEE  OWNERS,  THE FIRM AND ITS OWNERS MUST COMPLY WITH RULES PROMULGATED
BY THE STATE BOARD FOR PUBLIC ACCOUNTANCY. NOTWITHSTANDING  THE  FOREGO-
ING,  A  FIRM  REGISTERED  UNDER  THIS SECTION MAY NOT HAVE NON-LICENSEE
OWNERS IF THE FIRM'S NAME INCLUDES THE WORDS "CERTIFIED PUBLIC  ACCOUNT-
ANT,"  OR  "CERTIFIED  PUBLIC  ACCOUNTS,"  OR THE ABBREVIATIONS "CPA" OR
"CPAS." EACH NON-LICENSEE OWNER OF A FIRM  THAT  IS  INCORPORATED  UNDER
THIS  SECTION SHALL BE (1) A NATURAL PERSON WHO ACTIVELY PARTICIPATES IN
THE BUSINESS OF THE FIRM OR ITS AFFILIATED ENTITIES, OR (2)  AN  ENTITY,
INCLUDING,  BUT  NOT  LIMITED  TO,  A PARTNERSHIP OR PROFESSIONAL CORPO-
RATION, PROVIDED EACH BENEFICIAL OWNER OF AN  EQUITY  INTEREST  IN  SUCH
ENTITY  IS  A  NATURAL  PERSON WHO ACTIVELY PARTICIPATES IN THE BUSINESS
CONDUCTED BY THE FIRM OR ITS AFFILIATED ENTITIES. FOR PURPOSES  OF  THIS
SUBDIVISION, "ACTIVELY PARTICIPATE" MEANS TO PROVIDE SERVICES TO CLIENTS
OR  TO  OTHERWISE  INDIVIDUALLY  TAKE PART IN THE DAY-TO-DAY BUSINESS OR
MANAGEMENT OF THE FIRM.
  S 14. Subdivision (q) of section 121-1502 of the partnership  law,  as
amended  by  chapter  554  of  the  laws  of 2013, is amended to read as
follows:
  (q) Each partner of a  foreign  limited  liability  partnership  which
provides  medical  services  in  this state must be licensed pursuant to
article 131 of the education law to practice medicine in the  state  and
each  partner  of a foreign limited liability partnership which provides
dental services in the state must be licensed pursuant to article 133 of
the education law to practice dentistry in this state. Each partner of a
foreign limited liability partnership which provides veterinary  service
in  the state shall be licensed pursuant to article 135 of the education
law to practice veterinary medicine in this state.  Each  partner  of  a
foreign  limited liability partnership which provides professional engi-
neering, land surveying, architectural  and/or  landscape  architectural
services in this state must be licensed pursuant to article 145, article
147  and/or  article 148 of the education law to practice one or more of
such professions. EACH PARTNER OF A FOREIGN REGISTERED LIMITED LIABILITY
PARTNERSHIP FORMED TO PROVIDE PUBLIC ACCOUNTANCY SERVICES, WHOSE PRINCI-
PAL PLACE OF BUSINESS IS IN THIS STATE AND WHO PROVIDES  PUBLIC  ACCOUN-
TANCY  SERVICES,  MUST BE LICENSED PURSUANT TO ARTICLE 149 OF THE EDUCA-
TION LAW TO PRACTICE PUBLIC ACCOUNTANCY IN THIS STATE. Each partner of a
foreign limited liability partnership which provides  licensed  clinical
social  work services in this state must be licensed pursuant to article
154 of the education law to practice licensed clinical  social  work  in
this  state.  Each  partner  of  a foreign limited liability partnership
which provides creative arts therapy services  in  this  state  must  be
licensed  pursuant to article 163 of the education law to practice crea-
tive arts therapy in this state.  Each  partner  of  a  foreign  limited
liability   partnership  which  provides  marriage  and  family  therapy
services in this state must be licensed pursuant to article 163  of  the
education  law  to  practice  marriage and family therapy in this state.
Each partner of a foreign limited liability partnership  which  provides
mental  health counseling services in this state must be licensed pursu-
ant to article 163 of the education law to practice mental health  coun-
seling  in this state. Each partner of a foreign limited liability part-
nership which provides psychoanalysis services in  this  state  must  be
licensed  pursuant  to  article  163  of  the  education law to practice
psychoanalysis in this state. Each partner of a foreign limited  liabil-
ity  partnership  which  provides  applied behavior analysis services in
this state must be licensed or certified pursuant to article 167 of  the

A. 5964                            11

education  law  to  practice  applied  behavior  analysis in this state.
NOTWITHSTANDING ANY OTHER PROVISIONS OF LAW A FOREIGN LIMITED  LIABILITY
PARTNERSHIP  FORMED TO LAWFULLY ENGAGE IN THE PRACTICE OF PUBLIC ACCOUN-
TANCY, AS SUCH PRACTICE IS RESPECTIVELY DEFINED UNDER ARTICLE 149 OF THE
EDUCATION  LAW,  SHALL BE REQUIRED TO SHOW (1) THAT A SIMPLE MAJORITY OF
THE OWNERSHIP OF THE FIRM, IN TERMS OF  FINANCIAL  INTERESTS,  INCLUDING
OWNERSHIP-BASED  COMPENSATION,  AND  VOTING  RIGHTS  HELD  BY THE FIRM'S
OWNERS, BELONGS TO INDIVIDUALS LICENSED TO PRACTICE  PUBLIC  ACCOUNTANCY
IN  SOME STATE, AND (2) THAT ALL PARTNERS OF A FOREIGN LIMITED LIABILITY
PARTNERSHIP WHOSE PRINCIPAL PLACE OF BUSINESS IS IN THIS STATE, AND  WHO
ARE  ENGAGED IN THE PRACTICE OF PUBLIC ACCOUNTANCY IN THIS STATE, HOLD A
VALID LICENSE ISSUED UNDER SECTION 7404 OF  THE  EDUCATION  LAW  OR  ARE
PUBLIC  ACCOUNTANTS  LICENSED  UNDER  SECTION 7405 OF THE EDUCATION LAW.
ALTHOUGH FIRMS MAY INCLUDE NON-LICENSEE OWNERS, THE FIRM AND ITS  OWNERS
MUST COMPLY WITH RULES PROMULGATED BY THE STATE BOARD FOR PUBLIC ACCOUN-
TANCY.    NOTWITHSTANDING  THE  FOREGOING,  A FIRM REGISTERED UNDER THIS
SECTION MAY NOT HAVE NON-LICENSEE OWNERS IF THE FIRM'S NAME INCLUDES THE
WORDS "CERTIFIED PUBLIC ACCOUNTANT," OR "CERTIFIED PUBLIC  ACCOUNTANTS,"
OR  THE ABBREVIATIONS "CPA" OR "CPAS." EACH NON-LICENSEE OWNER OF A FIRM
THAT IS INCORPORATED UNDER THIS SECTION SHALL BE (1)  A  NATURAL  PERSON
WHO  ACTIVELY PARTICIPATES IN THE BUSINESS OF THE FIRM OR ITS AFFILIATED
ENTITIES, OR (2) AN ENTITY, INCLUDING, BUT NOT LIMITED TO, A PARTNERSHIP
OR PROFESSIONAL CORPORATION, PROVIDED EACH BENEFICIAL OWNER OF AN EQUITY
INTEREST IN SUCH ENTITY IS A NATURAL PERSON WHO ACTIVELY PARTICIPATES IN
THE BUSINESS CONDUCTED BY THE FIRM OR  ITS  AFFILIATED  ENTITIES.    FOR
PURPOSES  OF  THIS  SUBDIVISION, "ACTIVELY PARTICIPATE" MEANS TO PROVIDE
SERVICES TO CLIENTS OR  TO  OTHERWISE  INDIVIDUALLY  TAKE  PART  IN  THE
DAY-TO-DAY BUSINESS OR MANAGEMENT OF THE FIRM.
  S  15.  Subdivision (q) of section 121-1502 of the partnership law, as
amended by chapter 475 of the laws  of  2014,  is  amended  to  read  as
follows:
  (q)  Each  partner  of  a  foreign limited liability partnership which
provides medical services in this state must  be  licensed  pursuant  to
article  131  of the education law to practice medicine in the state and
each partner of a foreign limited liability partnership  which  provides
dental services in the state must be licensed pursuant to article 133 of
the education law to practice dentistry in this state. Each partner of a
foreign  limited liability partnership which provides veterinary service
in the state shall be licensed pursuant to article 135 of the  education
law  to  practice  veterinary  medicine in this state. Each partner of a
foreign limited liability partnership which provides professional  engi-
neering, land surveying, geological services, architectural and/or land-
scape  architectural services in this state must be licensed pursuant to
article 145, article 147 and/or article 148  of  the  education  law  to
practice  one  or  more of such professions.   EACH PARTNER OF A FOREIGN
REGISTERED  LIMITED  LIABILITY  PARTNERSHIP  FORMED  TO  PROVIDE  PUBLIC
ACCOUNTANCY SERVICES, WHOSE PRINCIPAL PLACE OF BUSINESS IS IN THIS STATE
AND  WHO PROVIDES PUBLIC ACCOUNTANCY SERVICES, MUST BE LICENSED PURSUANT
TO ARTICLE 149 OF THE EDUCATION LAW TO PRACTICE  PUBLIC  ACCOUNTANCY  IN
THIS  STATE.  Each  partner  of  a foreign limited liability partnership
which provides licensed clinical social work services in this state must
be licensed pursuant to article 154 of the  education  law  to  practice
licensed  clinical  social work in this state. Each partner of a foreign
limited liability  partnership  which  provides  creative  arts  therapy
services  in  this state must be licensed pursuant to article 163 of the
education law to practice creative arts  therapy  in  this  state.  Each

A. 5964                            12

partner  of  a  foreign  limited  liability  partnership  which provides
marriage and family therapy services in  this  state  must  be  licensed
pursuant  to  article  163 of the education law to practice marriage and
family  therapy in this state. Each partner of a foreign limited liabil-
ity partnership which provides mental health counseling services in this
state must be licensed pursuant to article 163 of the education  law  to
practice  mental  health  counseling  in  this  state. Each partner of a
foreign limited  liability  partnership  which  provides  psychoanalysis
services  in  this state must be licensed pursuant to article 163 of the
education law to practice psychoanalysis in this state. Each partner  of
a  foreign limited liability partnership which provides applied behavior
analysis services in this state must be licensed or  certified  pursuant
to  article 167 of the education law to practice applied behavior analy-
sis in this state.   NOTWITHSTANDING  ANY  OTHER  PROVISIONS  OF  LAW  A
FOREIGN  LIMITED  LIABILITY PARTNERSHIP FORMED TO LAWFULLY ENGAGE IN THE
PRACTICE OF PUBLIC ACCOUNTANCY, AS SUCH PRACTICE IS RESPECTIVELY DEFINED
UNDER ARTICLE 149 OF THE EDUCATION LAW, SHALL BE REQUIRED  TO  SHOW  (1)
THAT  A SIMPLE MAJORITY OF THE OWNERSHIP OF THE FIRM, IN TERMS OF FINAN-
CIAL  INTERESTS,  INCLUDING  OWNERSHIP-BASED  COMPENSATION,  AND  VOTING
RIGHTS  HELD  BY  THE  FIRM'S OWNERS, BELONGS TO INDIVIDUALS LICENSED TO
PRACTICE PUBLIC ACCOUNTANCY IN SOME STATE, AND (2) THAT ALL PARTNERS  OF
A  FOREIGN  LIMITED LIABILITY PARTNERSHIP WHOSE PRINCIPAL PLACE OF BUSI-
NESS IS IN THIS STATE, AND WHO ARE ENGAGED IN  THE  PRACTICE  OF  PUBLIC
ACCOUNTANCY  IN  THIS  STATE,  HOLD A VALID LICENCE ISSUED UNDER SECTION
7404 OF THE EDUCATION LAW  OR  ARE  PUBLIC  ACCOUNTANTS  LICENSED  UNDER
SECTION 7405 OF THE EDUCATION LAW. ALTHOUGH FIRMS MAY INCLUDE NON-LICEN-
SEE  OWNERS,  THE FIRM AND ITS OWNERS MUST COMPLY WITH RULES PROMULGATED
BY THE STATE BOARD FOR PUBLIC ACCOUNTANCY. NOTWITHSTANDING  THE  FOREGO-
ING,  A  FIRM  REGISTERED  UNDER  THIS SECTION MAY NOT HAVE NON-LICENSEE
OWNERS IF THE FIRM'S NAME INCLUDES THE WORDS "CERTIFIED PUBLIC  ACCOUNT-
ANT,"  OR  "CERTIFIED PUBLIC ACCOUNTANTS," OR THE ABBREVIATIONS "CPA" OR
"CPAS."  EACH NON-LICENSEE OWNER OF A FIRM THAT  IS  INCORPORATED  UNDER
THIS  SECTION SHALL BE (1) A NATURAL PERSON WHO ACTIVELY PARTICIPATES IN
THE BUSINESS OF THE FIRM OR ITS AFFILIATED ENTITIES, OR (2)  AN  ENTITY,
INCLUDING,  BUT  NOT  LIMITED  TO,  A PARTNERSHIP OR PROFESSIONAL CORPO-
RATION, PROVIDED EACH BENEFICIAL OWNER OF AN  EQUITY  INTEREST  IN  SUCH
ENTITY  IS  A  NATURAL  PERSON WHO ACTIVELY PARTICIPATES IN THE BUSINESS
CONDUCTED BY THE FIRM OR ITS AFFILIATED ENTITIES.  FOR PURPOSES OF  THIS
SUBDIVISION, "ACTIVELY PARTICIPATE" MEANS TO PROVIDE SERVICES TO CLIENTS
OR  TO  OTHERWISE  INDIVIDUALLY  TAKE PART IN THE DAY-TO-DAY BUSINESS OR
MANAGEMENT OF THE FIRM.
  S 16. Subdivision (h) of section 121-101 of the  partnership  law,  as
added by chapter 950 of the laws of 1990, is amended to read as follows:
  (h)  "Limited  partnership"  and  "domestic limited partnership" mean,
unless the context otherwise requires, a partnership (i) formed  by  two
or more persons pursuant to this article or which complies with subdivi-
sion (a) of section 121-1202 of this article and (ii) having one or more
general  partners and one or more limited partners.  NOTWITHSTANDING ANY
OTHER PROVISIONS OF LAW A LIMITED PARTNERSHIP OR DOMESTIC LIMITED  PART-
NERSHIP FORMED TO LAWFULLY ENGAGE IN THE PRACTICE OF PUBLIC ACCOUNTANCY,
AS SUCH PRACTICE IS RESPECTIVELY DEFINED UNDER ARTICLE 149 OF THE EDUCA-
TION  LAW  SHALL  BE  REQUIRED TO SHOW (1) THAT A SIMPLE MAJORITY OF THE
OWNERSHIP OF THE FIRM, IN TERMS OF FINANCIAL INTERESTS, INCLUDING OWNER-
SHIP-BASED COMPENSATION, AND VOTING RIGHTS HELD BY  THE  FIRM'S  OWNERS,
BELONGS  TO  INDIVIDUALS LICENSED TO PRACTICE PUBLIC ACCOUNTANCY IN SOME
STATE, AND (2) THAT ALL PARTNERS OF A LIMITED  PARTNERSHIP  OR  DOMESTIC

A. 5964                            13

LIMITED PARTNERSHIP, WHOSE PRINCIPAL PLACE OF BUSINESS IS IN THIS STATE,
AND WHO ARE ENGAGED IN THE PRACTICE OF PUBLIC ACCOUNTANCY IN THIS STATE,
HOLD  A  VALID LICENSE ISSUED UNDER SECTION 7404 OF THE EDUCATION LAW OR
ARE PUBLIC ACCOUNTANTS LICENSED UNDER SECTION 7405 OF THE EDUCATION LAW.
ALTHOUGH  FIRMS MAY INCLUDE NON-LICENSEE OWNERS, THE FIRM AND ITS OWNERS
MUST COMPLY WITH RULES PROMULGATED BY THE STATE BOARD FOR PUBLIC ACCOUN-
TANCY.   NOTWITHSTANDING THE FOREGOING, A  FIRM  REGISTERED  UNDER  THIS
SECTION MAY NOT HAVE NON-LICENSEE OWNERS IF THE FIRM'S NAME INCLUDES THE
WORDS  "CERTIFIED PUBLIC ACCOUNTANT," OR "CERTIFIED PUBLIC ACCOUNTANTS,"
OR THE ABBREVIATIONS "CPA" OR "CPAS." EACH NON-LICENSEE OWNER OF A  FIRM
THAT  IS REGISTERED UNDER THIS SECTION SHALL BE (1) A NATURAL PERSON WHO
ACTIVELY PARTICIPATES IN THE BUSINESS OF  THE  FIRM  OR  ITS  AFFILIATED
ENTITIES, OR (2) AN ENTITY, INCLUDING, BUT NOT LIMITED TO, A PARTNERSHIP
OR PROFESSIONAL CORPORATION, PROVIDED EACH BENEFICIAL OWNER OF AN EQUITY
INTEREST IN SUCH ENTITY IS A NATURAL PERSON WHO ACTIVELY PARTICIPATES IN
THE  BUSINESS  CONDUCTED  BY  THE  FIRM  OR ITS AFFILIATED ENTITIES. FOR
PURPOSES OF THIS SUBDIVISION, "ACTIVELY PARTICIPATE"  MEANS  TO  PROVIDE
SERVICES  TO  CLIENTS  OR  TO  OTHERWISE  INDIVIDUALLY  TAKE PART IN THE
DAY-TO-DAY BUSINESS OR MANAGEMENT OF THE FIRM.
  S 17. Subdivision (b) of section 1207 of the limited liability company
law, as amended by chapter 554 of the laws of 2013, is amended  to  read
as follows:
  (b)  With  respect to a professional service limited liability company
formed to provide medical services as such services are defined in arti-
cle 131 of the education law, each  member  of  such  limited  liability
company must be licensed pursuant to article 131 of the education law to
practice  medicine in this state. With respect to a professional service
limited liability company formed to  provide  dental  services  as  such
services are defined in article 133 of the education law, each member of
such  limited liability company must be licensed pursuant to article 133
of the education law to practice dentistry in this state.  With  respect
to  a  professional  service limited liability company formed to provide
veterinary services as such services are defined in article 135  of  the
education  law,  each  member  of such limited liability company must be
licensed pursuant to article 135 of the education law to practice veter-
inary medicine in this state. With respect  to  a  professional  service
limited  liability  company  formed to provide professional engineering,
land surveying, architectural and/or landscape architectural services as
such services are defined in article 145, article 147 and article 148 of
the education law, each member of such limited liability company must be
licensed pursuant to article 145, article 147 and/or article 148 of  the
education law to practice one or more of such professions in this state.
WITH  RESPECT TO A PROFESSIONAL SERVICE LIMITED LIABILITY COMPANY FORMED
TO PROVIDE PUBLIC ACCOUNTANCY SERVICES AS SUCH SERVICES ARE  DEFINED  IN
ARTICLE  149  OF THE EDUCATION LAW EACH MEMBER OF SUCH LIMITED LIABILITY
COMPANY WHOSE PRINCIPAL PLACE OF BUSINESS  IS  IN  THIS  STATE  AND  WHO
PROVIDES PUBLIC ACCOUNTANCY SERVICES, MUST BE LICENSED PURSUANT TO ARTI-
CLE  149  OF  THE  EDUCATION  LAW TO PRACTICE PUBLIC ACCOUNTANCY IN THIS
STATE. With respect to a professional service limited liability  company
formed  to  provide  licensed  clinical  social  work  services  as such
services are defined in article 154 of the education law, each member of
such limited liability company shall be licensed pursuant to article 154
of the education law to practice licensed clinical social work  in  this
state.  With respect to a professional service limited liability company
formed to provide creative arts therapy services as  such  services  are
defined in article 163 of the education law, each member of such limited

A. 5964                            14

liability company must be licensed pursuant to article 163 of the educa-
tion  law  to practice creative arts therapy in this state. With respect
to a professional service limited liability company  formed  to  provide
marriage  and  family  therapy  services as such services are defined in
article 163 of the education law, each member of such limited  liability
company must be licensed pursuant to article 163 of the education law to
practice  marriage  and  family therapy in this state. With respect to a
professional service limited liability company formed to provide  mental
health  counseling  services as such services are defined in article 163
of the education law, each member of such limited liability company must
be licensed pursuant to article 163 of the  education  law  to  practice
mental  health  counseling in this state. With respect to a professional
service limited  liability  company  formed  to  provide  psychoanalysis
services  as  such  services are defined in article 163 of the education
law, each member of such limited  liability  company  must  be  licensed
pursuant  to article 163 of the education law to practice psychoanalysis
in this state. With respect to a professional service limited  liability
company  formed  to  provide  applied behavior analysis services as such
services are defined in article 167 of the education law, each member of
such limited liability company must be licensed or certified pursuant to
article 167 of the education law to practice applied  behavior  analysis
in  this  state.  NOTWITHSTANDING  ANY OTHER PROVISIONS OF LAW A PROFES-
SIONAL SERVICE LIMITED LIABILITY COMPANY FORMED TO  LAWFULLY  ENGAGE  IN
THE  PRACTICE  OF  PUBLIC  ACCOUNTANCY, AS SUCH PRACTICE IS RESPECTIVELY
DEFINED UNDER ARTICLE 149 OF THE EDUCATION LAW SHALL BE REQUIRED TO SHOW
(1) THAT A SIMPLE MAJORITY OF THE OWNERSHIP OF THE  FIRM,  IN  TERMS  OF
FINANCIAL  INTERESTS, INCLUDING OWNERSHIP-BASED COMPENSATION, AND VOTING
RIGHTS HELD BY THE FIRM'S OWNERS, BELONGS  TO  INDIVIDUALS  LICENSED  TO
PRACTICE PUBLIC ACCOUNTANCY IN SOME STATE, AND (2) THAT ALL MEMBERS OF A
LIMITED  PROFESSIONAL SERVICE LIMITED LIABILITY COMPANY, WHOSE PRINCIPAL
PLACE OF BUSINESS IS IN THIS STATE, AND WHO ARE ENGAGED IN THE  PRACTICE
OF  PUBLIC  ACCOUNTANCY IN THIS STATE, HOLD A VALID LICENSE ISSUED UNDER
SECTION 7404 OF ARTICLE 149 OF THE EDUCATION LAW OR ARE PUBLIC  ACCOUNT-
ANTS  LICENSED  UNDER  SECTION 7405 OF ARTICLE 149 OF THE EDUCATION LAW.
ALTHOUGH FIRMS MAY INCLUDE NON-LICENSEE OWNERS, THE FIRM AND ITS  OWNERS
MUST COMPLY WITH RULES PROMULGATED BY THE STATE BOARD FOR PUBLIC ACCOUN-
TANCY.    NOTWITHSTANDING  THE  FOREGOING,  A FIRM REGISTERED UNDER THIS
SECTION MAY NOT HAVE NON-LICENSEE OWNERS IF THE FIRM'S NAME INCLUDES THE
WORDS "CERTIFIED PUBLIC ACCOUNTANT," OR "CERTIFIED PUBLIC  ACCOUNTANTS,"
OR  THE ABBREVIATIONS "CPA" OR "CPAS." EACH NON-LICENSEE OWNER OF A FIRM
THAT IS REGISTERED UNDER THIS SECTION SHALL BE (1) A NATURAL PERSON  WHO
ACTIVELY  PARTICIPATES  IN  THE  BUSINESS  OF THE FIRM OR ITS AFFILIATED
ENTITIES, OR (2) AN ENTITY, INCLUDING, BUT NOT LIMITED TO, A PARTNERSHIP
OR PROFESSIONAL CORPORATION, PROVIDED EACH BENEFICIAL OWNER OF AN EQUITY
INTEREST IN SUCH ENTITY IS A NATURAL PERSON WHO ACTIVELY PARTICIPATES IN
THE BUSINESS CONDUCTED BY THE  FIRM  OR  ITS  AFFILIATED  ENTITIES.  FOR
PURPOSES  OF  THIS  SUBDIVISION, "ACTIVELY PARTICIPATE" MEANS TO PROVIDE
SERVICES TO CLIENTS OR  TO  OTHERWISE  INDIVIDUALLY  TAKE  PART  IN  THE
DAY-TO-DAY BUSINESS OR MANAGEMENT OF THE FIRM.
  S 18. Subdivision (b) of section 1207 of the limited liability company
law,  as  amended by chapter 475 of the laws of 2014, is amended to read
as follows:
  (b) With respect to a professional service limited  liability  company
formed to provide medical services as such services are defined in arti-
cle  131  of  the  education  law, each member of such limited liability
company must be licensed pursuant to article 131 of the education law to

A. 5964                            15

practice medicine in this state.  With respect to a professional service
limited liability company formed to  provide  dental  services  as  such
services are defined in article 133 of the education law, each member of
such  limited liability company must be licensed pursuant to article 133
of the education law to practice dentistry in this state.  With  respect
to  a  professional  service limited liability company formed to provide
veterinary services as such services are defined in article 135  of  the
education  law,  each  member  of such limited liability company must be
licensed pursuant to article 135 of the education law to practice veter-
inary medicine in this state. With respect  to  a  professional  service
limited  liability  company  formed to provide professional engineering,
land surveying, architectural, landscape architectural and/or geological
services as such services are defined in article 145,  article  147  and
article  148 of the education law, each member of such limited liability
company must be licensed pursuant to article  145,  article  147  and/or
article  148  of  the  education  law  to  practice  one or more of such
professions in this state.   WITH  RESPECT  TO  A  PROFESSIONAL  SERVICE
LIMITED  LIABILITY COMPANY FORMED TO PROVIDE PUBLIC ACCOUNTANCY SERVICES
AS SUCH SERVICES ARE DEFINED IN ARTICLE 149 OF THE  EDUCATION  LAW  EACH
MEMBER  OF SUCH LIMITED LIABILITY COMPANY WHOSE PRINCIPAL PLACE OF BUSI-
NESS IS IN THIS STATE AND WHO PROVIDES PUBLIC ACCOUNTANCY SERVICES, MUST
BE LICENSED PURSUANT TO ARTICLE 149 OF THE  EDUCATION  LAW  TO  PRACTICE
PUBLIC ACCOUNTANCY IN THIS STATE. With respect to a professional service
limited  liability  company  formed  to provide licensed clinical social
work services as such services are defined in article 154 of the  educa-
tion  law,  each  member  of  such  limited  liability  company shall be
licensed pursuant to article  154  of  the  education  law  to  practice
licensed  clinical  social work in this state. With respect to a profes-
sional service limited liability company formed to provide creative arts
therapy services as such services are defined  in  article  163  of  the
education  law,  each  member  of such limited liability company must be
licensed pursuant to article 163 of the education law to practice  crea-
tive  arts therapy in this state. With respect to a professional service
limited liability company formed to provide marriage and family  therapy
services  as  such  services are defined in article 163 of the education
law, each member of such limited  liability  company  must  be  licensed
pursuant  to  article  163 of the education law to practice marriage and
family therapy in this state. With respect  to  a  professional  service
limited  liability  company  formed  to provide mental health counseling
services as such services are defined in article 163  of  the  education
law,  each  member  of  such  limited liability company must be licensed
pursuant to article 163 of the education law to practice  mental  health
counseling in this state. With respect to a professional service limited
liability  company  formed  to  provide  psychoanalysis services as such
services are defined in article 163 of the education law, each member of
such limited liability company must be licensed pursuant to article  163
of  the  education  law  to  practice psychoanalysis in this state. With
respect to a professional service limited liability  company  formed  to
provide  applied behavior analysis services as such services are defined
in article 167 of the education law, each member of such limited liabil-
ity company must be licensed or certified pursuant to article 167 of the
education law to practice  applied  behavior  analysis  in  this  state.
NOTWITHSTANDING  ANY  OTHER  PROVISIONS  OF  LAW  A PROFESSIONAL SERVICE
LIMITED LIABILITY COMPANY FORMED TO LAWFULLY ENGAGE IN THE  PRACTICE  OF
PUBLIC ACCOUNTANCY, AS SUCH PRACTICE IS RESPECTIVELY DEFINED UNDER ARTI-
CLE 149 OF THE EDUCATION LAW SHALL BE REQUIRED TO SHOW (1) THAT A SIMPLE

A. 5964                            16

MAJORITY  OF THE OWNERSHIP OF THE FIRM, IN TERMS OF FINANCIAL INTERESTS,
INCLUDING OWNERSHIP-BASED COMPENSATION, AND VOTING RIGHTS  HELD  BY  THE
FIRM'S  OWNERS,  BELONGS  TO  INDIVIDUALS  LICENSED  TO  PRACTICE PUBLIC
ACCOUNTANCY IN SOME STATE, AND (2) THAT ALL MEMBERS OF A LIMITED PROFES-
SIONAL SERVICE LIMITED LIABILITY COMPANY, WHOSE PRINCIPAL PLACE OF BUSI-
NESS  IS  IN  THIS  STATE, AND WHO ARE ENGAGED IN THE PRACTICE OF PUBLIC
ACCOUNTANCY IN THIS STATE, HOLD A VALID  LICENSE  ISSUED  UNDER  SECTION
7404  OF  ARTICLE  149  OF  THE  EDUCATION LAW OR ARE PUBLIC ACCOUNTANTS
LICENSED UNDER SECTION  7405  OF  ARTICLE  149  OF  THE  EDUCATION  LAW.
ALTHOUGH  FIRMS MAY INCLUDE NON-LICENSEE OWNERS, THE FIRM AND ITS OWNERS
MUST COMPLY WITH RULES PROMULGATED BY THE STATE BOARD FOR PUBLIC ACCOUN-
TANCY. NOTWITHSTANDING THE  FOREGOING,  A  FIRM  REGISTERED  UNDER  THIS
SECTION MAY NOT HAVE NON-LICENSEE OWNERS IF THE FIRM'S NAME INCLUDES THE
WORDS  "CERTIFIED PUBLIC ACCOUNTANT," OR "CERTIFIED PUBLIC ACCOUNTANTS,"
OR THE ABBREVIATIONS "CPA" OR "CPAS." EACH NON-LICENSEE OWNER OF A  FIRM
THAT  IS REGISTERED UNDER THIS SECTION SHALL BE (1) A NATURAL PERSON WHO
ACTIVELY PARTICIPATES IN THE BUSINESS OF  THE  FIRM  OR  ITS  AFFILIATED
ENTITIES, OR (2) AN ENTITY, INCLUDING, BUT NOT LIMITED TO, A PARTNERSHIP
OR PROFESSIONAL CORPORATION, PROVIDED EACH BENEFICIAL OWNER OF AN EQUITY
INTEREST IN SUCH ENTITY IS A NATURAL PERSON WHO ACTIVELY PARTICIPATES IN
THE  BUSINESS  CONDUCTED  BY  THE  FIRM  OR ITS AFFILIATED ENTITIES. FOR
PURPOSES OF THIS SUBDIVISION, "ACTIVELY PARTICIPATE"  MEANS  TO  PROVIDE
SERVICES  TO  CLIENTS  OR  TO  OTHERWISE  INDIVIDUALLY  TAKE PART IN THE
DAY-TO-DAY BUSINESS OR MANAGEMENT OF THE FIRM.
  S 19. Subdivisions (a) and (f) of section 1301 of the limited  liabil-
ity  company  law, subdivision (a) as amended by chapter 554 of the laws
of 2013 and subdivision (f) as amended by chapter 170  of  the  laws  of
1996, are amended to read as follows:
  (a)  "Foreign  professional service limited liability company" means a
professional service limited liability company, whether or  not  denomi-
nated  as  such,  organized  under the laws of a jurisdiction other than
this state, (i) each of whose members and managers, if any, is a profes-
sional authorized by law to render a professional  service  within  this
state  and who is or has been engaged in the practice of such profession
in such professional service limited liability company or a  predecessor
entity, or will engage in the practice of such profession in the profes-
sional  service limited liability company within thirty days of the date
such professional becomes a member, or each of whose members and  manag-
ers,  if  any, is a professional at least one of such members is author-
ized by law to render a professional service within this state  and  who
is  or  has  been  engaged  in  the  practice of such profession in such
professional service limited liability company or a predecessor  entity,
or  will  engage  in the practice of such profession in the professional
service limited liability company within thirty days of  the  date  such
professional  becomes  a  member,  or  (ii)  authorized by, or holding a
license, certificate, registration or permit  issued  by  the  licensing
authority  pursuant  to,  the  education  law  to  render a professional
service within this state; except that all members and managers, if any,
of  a  foreign  professional  service  limited  liability  company  that
provides  health services in this state shall be licensed in this state.
With respect to a foreign professional service limited liability company
which provides veterinary services as such services are defined in arti-
cle 135 of the education law, each member of such  foreign  professional
service  limited liability company shall be licensed pursuant to article
135 of the education law to practice veterinary medicine.  With  respect
to  a  foreign  professional  service  limited  liability  company which

A. 5964                            17

provides medical services as such services are defined in article 131 of
the education law, each member  of  such  foreign  professional  service
limited  liability  company  must be licensed pursuant to article 131 of
the education law to practice medicine in this state.  With respect to a
foreign  professional  service  limited liability company which provides
dental services as such services are  defined  in  article  133  of  the
education  law, each member of such foreign professional service limited
liability company must be licensed pursuant to article 133 of the educa-
tion law to practice dentistry in this state. With respect to a  foreign
professional  service  limited  liability company which provides profes-
sional  engineering,  land  surveying,  architectural  and/or  landscape
architectural  services  as  such  services  are defined in article 145,
article 147 and article 148 of the education law, each  member  of  such
foreign  professional service limited liability company must be licensed
pursuant to article 145, article 147 and/or article 148 of the education
law to practice one or more of such  professions  in  this  state.  WITH
RESPECT  TO  A  FOREIGN  PROFESSIONAL  SERVICE LIMITED LIABILITY COMPANY
WHICH PROVIDES PUBLIC ACCOUNTANCY SERVICES AS SUCH SERVICES ARE  DEFINED
IN ARTICLE 149 OF THE EDUCATION LAW, EACH MEMBER OF SUCH FOREIGN PROFES-
SIONAL  SERVICE LIMITED LIABILITY COMPANY WHOSE PRINCIPAL PLACE OF BUSI-
NESS IS IN THIS STATE AND  WHO  PROVIDES  PUBLIC  ACCOUNTANCY  SERVICES,
SHALL  BE LICENSED PURSUANT TO ARTICLE 149 OF THE EDUCATION LAW TO PRAC-
TICE PUBLIC ACCOUNTANCY IN THIS STATE. With respect to a foreign profes-
sional service limited liability company which provides  licensed  clin-
ical social work services as such services are defined in article 154 of
the  education  law,  each  member  of such foreign professional service
limited liability company shall be licensed pursuant to article  154  of
the  education  law to practice clinical social work in this state. With
respect to a foreign  professional  service  limited  liability  company
which  provides  creative  arts  therapy  services  as such services are
defined in article 163 of the education law, each member of such foreign
professional service limited liability company must be licensed pursuant
to article 163 of the education law to practice creative arts therapy in
this state. With respect  to  a  foreign  professional  service  limited
liability company which provides marriage and family therapy services as
such  services  are  defined  in  article 163 of the education law, each
member of such foreign professional service  limited  liability  company
must  be  licensed pursuant to article 163 of the education law to prac-
tice marriage and family therapy  in  this  state.  With  respect  to  a
foreign  professional  service  limited liability company which provides
mental health counseling services as such services are defined in  arti-
cle  163  of the education law, each member of such foreign professional
service limited liability company must be licensed pursuant  to  article
163  of  the  education law to practice mental health counseling in this
state. With respect to a foreign professional service limited  liability
company  which  provides  psychoanalysis  services  as such services are
defined in article 163 of the education law, each member of such foreign
professional service limited liability company must be licensed pursuant
to article 163 of the education law to practice psychoanalysis  in  this
state.  With respect to a foreign professional service limited liability
company which  provides  applied  behavior  analysis  services  as  such
services are defined in article 167 of the education law, each member of
such  foreign  professional  service  limited  liability company must be
licensed or certified pursuant to article 167 of the  education  law  to
practice  applied  behavior analysis in this state.  NOTWITHSTANDING ANY
OTHER PROVISIONS OF LAW A FOREIGN PROFESSIONAL SERVICE LIMITED LIABILITY

A. 5964                            18

COMPANY FORMED TO LAWFULLY ENGAGE IN THE PRACTICE OF PUBLIC ACCOUNTANCY,
AS SUCH PRACTICE IS RESPECTIVELY DEFINED UNDER ARTICLE 149 OF THE EDUCA-
TION LAW SHALL BE REQUIRED TO SHOW (1) THAT A  SIMPLE  MAJORITY  OF  THE
OWNERSHIP OF THE FIRM, IN TERMS OF FINANCIAL INTERESTS, INCLUDING OWNER-
SHIP-BASED  COMPENSATION,  AND  VOTING RIGHTS HELD BY THE FIRM'S OWNERS,
BELONGS TO INDIVIDUALS LICENSED TO PRACTICE PUBLIC ACCOUNTANCY  IN  SOME
STATE,  AND  (2)  THAT  ALL  MEMBERS  OF  A FOREIGN LIMITED PROFESSIONAL
SERVICE LIMITED LIABILITY COMPANY, WHOSE PRINCIPAL PLACE OF BUSINESS  IS
IN THIS STATE, AND WHO ARE ENGAGED IN THE PRACTICE OF PUBLIC ACCOUNTANCY
IN  THIS  STATE,  HOLD  A VALID LICENSE ISSUED UNDER SECTION 7404 OF THE
EDUCATION LAW OR ARE PUBLIC ACCOUNTANTS LICENSED UNDER SECTION  7405  OF
THE  EDUCATION  LAW. ALTHOUGH FIRMS MAY INCLUDE NON-LICENSEE OWNERS, THE
FIRM AND ITS OWNERS MUST COMPLY WITH  RULES  PROMULGATED  BY  THE  STATE
BOARD  FOR  PUBLIC  ACCOUNTANCY.   NOTWITHSTANDING THE FOREGOING, A FIRM
REGISTERED UNDER THIS SECTION MAY NOT HAVE NON-LICENSEE  OWNERS  IF  THE
FIRM'S NAME INCLUDES THE WORDS "CERTIFIED PUBLIC ACCOUNTANT," OR "CERTI-
FIED  PUBLIC  ACCOUNTANTS,"  OR THE ABBREVIATIONS "CPA" OR "CPAS."  EACH
NON-LICENSEE OWNER OF A FIRM THAT IS REGISTERED UNDER THIS SECTION SHALL
BE (1) A NATURAL PERSON WHO ACTIVELY PARTICIPATES IN THE BUSINESS OF THE
FIRM OR ITS AFFILIATED ENTITIES, OR (2) AN ENTITY,  INCLUDING,  BUT  NOT
LIMITED  TO,  A  PARTNERSHIP  OR PROFESSIONAL CORPORATION, PROVIDED EACH
BENEFICIAL OWNER OF AN EQUITY INTEREST  IN  SUCH  ENTITY  IS  A  NATURAL
PERSON  WHO  ACTIVELY PARTICIPATES IN THE BUSINESS CONDUCTED BY THE FIRM
OR ITS AFFILIATED ENTITIES. FOR PURPOSES OF THIS SUBDIVISION,  "ACTIVELY
PARTICIPATE"  MEANS TO PROVIDE SERVICES TO CLIENTS OR TO OTHERWISE INDI-
VIDUALLY TAKE PART IN THE DAY-TO-DAY BUSINESS OR MANAGEMENT OF THE FIRM.
  (f) "Professional partnership" means (1) a partnership without limited
partners each of whose partners is a professional authorized by  law  to
render a professional service within this state, (2) a partnership with-
out  limited partners each of whose partners is a professional, at least
one of whom is authorized by law to render a professional service within
this state or (3) a partnership without limited partners authorized  by,
or  holding a license, certificate, registration or permit issued by the
licensing authority pursuant to the education law to  render  a  profes-
sional  service within this state; except that all partners of a profes-
sional partnership that provides medical services in this state must  be
licensed  pursuant to article 131 of the education law to practice medi-
cine in this state and all partners of a professional  partnership  that
provides  dental  services  in  this  state must be licensed pursuant to
article 133 of the education law to practice dentistry  in  this  state;
except  that  all  partners  of a professional partnership that provides
veterinary services in this state must be licensed pursuant  to  article
135  of the education law to practice veterinary medicine in this state;
and further except that all partners of a professional partnership  that
provides professional engineering, land surveying, architectural, and/or
landscape architectural services in this state must be licensed pursuant
to  article  145, article 147 and/or article 148 of the education law to
practice one or more of such professions.   WITH RESPECT  TO  A  PROFES-
SIONAL  PARTNERSHIP  WHICH  PROVIDES PUBLIC ACCOUNTANCY SERVICES AS SUCH
SERVICES ARE DEFINED IN ARTICLE 149 OF THE EDUCATION LAW, EACH MEMBER OF
SUCH PROFESSIONAL PARTNERSHIP WHOSE PRINCIPAL PLACE OF  BUSINESS  IS  IN
THIS  STATE  AND  WHO  PROVIDES  PUBLIC  ACCOUNTANCY  SERVICES, SHALL BE
LICENSED PURSUANT TO ARTICLE 149 OF THE EDUCATION LAW TO PRACTICE PUBLIC
ACCOUNTANCY. NOTWITHSTANDING ANY OTHER PROVISIONS OF LAW A  PROFESSIONAL
PARTNERSHIP  FORMED TO LAWFULLY ENGAGE IN THE PRACTICE OF PUBLIC ACCOUN-
TANCY, AS SUCH PRACTICE IS RESPECTIVELY DEFINED UNDER ARTICLE 149 OF THE

A. 5964                            19

EDUCATION LAW SHALL BE REQUIRED TO SHOW (1) THAT A  SIMPLE  MAJORITY  OF
THE  OWNERSHIP  OF  THE FIRM, IN TERMS OF FINANCIAL INTERESTS, INCLUDING
OWNERSHIP-BASED COMPENSATION, AND  VOTING  RIGHTS  HELD  BY  THE  FIRM'S
OWNERS,  BELONGS  TO INDIVIDUALS LICENSED TO PRACTICE PUBLIC ACCOUNTANCY
IN SOME STATE, AND (2) THAT ALL MEMBERS OF A LIMITED PROFESSIONAL  PART-
NERSHIP, WHOSE PRINCIPAL PLACE OF BUSINESS IS IN THIS STATE, AND WHO ARE
ENGAGED  IN  THE  PRACTICE  OF  PUBLIC ACCOUNTANCY IN THIS STATE, HOLD A
VALID LICENSE ISSUED UNDER SECTION 7404 OF  THE  EDUCATION  LAW  OR  ARE
PUBLIC  ACCOUNTANTS  LICENSED  UNDER  SECTION 7405 OF THE EDUCATION LAW.
ALTHOUGH FIRMS MAY INCLUDE NON-LICENSEE OWNERS, THE FIRM AND ITS  OWNERS
MUST COMPLY WITH RULES PROMULGATED BY THE STATE BOARD FOR PUBLIC ACCOUN-
TANCY.    NOTWITHSTANDING  THE  FOREGOING,  A FIRM REGISTERED UNDER THIS
SECTION MAY NOT HAVE NON-LICENSEE OWNERS IF THE FIRM'S NAME INCLUDES THE
WORDS "CERTIFIED PUBLIC ACCOUNTANT," OR "CERTIFIED PUBLIC  ACCOUNTANTS,"
OR THE ABBREVIATIONS "CPA" OR "CPAS."  EACH NON-LICENSEE OWNER OF A FIRM
THAT  IS REGISTERED UNDER THIS SECTION SHALL BE (1) A NATURAL PERSON WHO
ACTIVELY PARTICIPATES IN THE BUSINESS OF  THE  FIRM  OR  ITS  AFFILIATED
ENTITIES, OR (2) AN ENTITY, INCLUDING, BUT NOT LIMITED TO, A PARTNERSHIP
OR PROFESSIONAL CORPORATION, PROVIDED EACH BENEFICIAL OWNER OF AN EQUITY
INTEREST IN SUCH ENTITY IS A NATURAL PERSON WHO ACTIVELY PARTICIPATES IN
THE  BUSINESS  CONDUCTED  BY  THE  FIRM  OR ITS AFFILIATED ENTITIES. FOR
PURPOSES OF THIS SUBDIVISION, "ACTIVELY PARTICIPATE"  MEANS  TO  PROVIDE
SERVICES  TO  CLIENTS  OR  TO  OTHERWISE  INDIVIDUALLY  TAKE PART IN THE
DAY-TO-DAY BUSINESS OR MANAGEMENT OF THE FIRM.
  S 20. Subdivisions (a) and (f) of section 1301 of the limited  liabil-
ity  company  law,  as  amended  by chapter 475 of the laws of 2014, are
amended to read as follows:
  (a) "Foreign professional service limited liability company"  means  a
professional  service  limited liability company, whether or not denomi-
nated as such, organized under the laws of  a  jurisdiction  other  than
this state, (i) each of whose members and managers, if any, is a profes-
sional  authorized  by  law to render a professional service within this
state and who is or has been engaged in the practice of such  profession
in  such professional service limited liability company or a predecessor
entity, or will engage in the practice of such profession in the profes-
sional service limited liability company within thirty days of the  date
such  professional becomes a member, or each of whose members and manag-
ers, if any, is a professional at least one of such members  is  author-
ized  by  law to render a professional service within this state and who
is or has been engaged in  the  practice  of  such  profession  in  such
professional  service limited liability company or a predecessor entity,
or will engage in the practice of such profession  in  the  professional
service  limited  liability  company within thirty days of the date such
professional becomes a member, or  (ii)  authorized  by,  or  holding  a
license,  certificate,  registration  or  permit issued by the licensing
authority pursuant to,  the  education  law  to  render  a  professional
service within this state; except that all members and managers, if any,
of  a  foreign  professional  service  limited  liability  company  that
provides health services in this state shall be licensed in this  state.
With respect to a foreign professional service limited liability company
which provides veterinary services as such services are defined in arti-
cle  135  of the education law, each member of such foreign professional
service limited liability company shall be licensed pursuant to  article
135  of  the education law to practice veterinary medicine. With respect
to a  foreign  professional  service  limited  liability  company  which
provides medical services as such services are defined in article 131 of

A. 5964                            20

the  education  law,  each  member  of such foreign professional service
limited liability company must be licensed pursuant to  article  131  of
the education law to practice medicine in this state.  With respect to a
foreign  professional  service  limited liability company which provides
dental services as such services are  defined  in  article  133  of  the
education  law, each member of such foreign professional service limited
liability company must be licensed pursuant to article 133 of the educa-
tion law to practice dentistry in this state. With respect to a  foreign
professional  service  limited  liability company which provides profes-
sional engineering, land surveying, geologic, architectural and/or land-
scape architectural services as such services  are  defined  in  article
145,  article  147  and article 148 of the education law, each member of
such foreign professional service  limited  liability  company  must  be
licensed  pursuant to article 145, article 147 and/or article 148 of the
education law to practice one or more of such professions in this state.
WITH RESPECT TO A FOREIGN PROFESSIONAL SERVICE LIMITED LIABILITY COMPANY
WHICH PROVIDES PUBLIC ACCOUNTANCY SERVICES AS SUCH SERVICES ARE  DEFINED
IN ARTICLE 149 OF THE EDUCATION LAW, EACH MEMBER OF SUCH FOREIGN PROFES-
SIONAL  SERVICE LIMITED LIABILITY COMPANY WHOSE PRINCIPAL PLACE OF BUSI-
NESS IS IN THIS STATE AND  WHO  PROVIDES  PUBLIC  ACCOUNTANCY  SERVICES,
SHALL  BE LICENSED PURSUANT TO ARTICLE 149 OF THE EDUCATION LAW TO PRAC-
TICE PUBLIC ACCOUNTANCY IN THIS STATE. With respect to a foreign profes-
sional service limited liability company which provides  licensed  clin-
ical social work services as such services are defined in article 154 of
the  education  law,  each  member  of such foreign professional service
limited liability company shall be licensed pursuant to article  154  of
the  education  law to practice clinical social work in this state. With
respect to a foreign  professional  service  limited  liability  company
which  provides  creative  arts  therapy  services  as such services are
defined in article 163 of the education law, each member of such foreign
professional service limited liability company must be licensed pursuant
to article 163 of the education law to practice creative arts therapy in
this state. With respect  to  a  foreign  professional  service  limited
liability company which provides marriage and family therapy services as
such  services  are  defined  in  article 163 of the education law, each
member of such foreign professional service  limited  liability  company
must  be  licensed pursuant to article 163 of the education law to prac-
tice marriage and family therapy  in  this  state.  With  respect  to  a
foreign  professional  service  limited liability company which provides
mental health counseling services as such services are defined in  arti-
cle  163  of the education law, each member of such foreign professional
service limited liability company must be licensed pursuant  to  article
163  of  the  education law to practice mental health counseling in this
state. With respect to a foreign professional service limited  liability
company  which  provides  psychoanalysis  services  as such services are
defined in article 163 of the education law, each member of such foreign
professional service limited liability company must be licensed pursuant
to article 163 of the education law to practice psychoanalysis  in  this
state.  With respect to a foreign professional service limited liability
company which  provides  applied  behavior  analysis  services  as  such
services are defined in article 167 of the education law, each member of
such  foreign  professional  service  limited  liability company must be
licensed or certified pursuant to article 167 of the  education  law  to
practice  applied  behavior  analysis in this state. NOTWITHSTANDING ANY
OTHER PROVISIONS OF LAW A FOREIGN PROFESSIONAL SERVICE LIMITED LIABILITY
COMPANY FORMED TO LAWFULLY ENGAGE IN THE PRACTICE OF PUBLIC ACCOUNTANCY,

A. 5964                            21

AS SUCH PRACTICE IS RESPECTIVELY DEFINED UNDER ARTICLE 149 OF THE EDUCA-
TION LAW SHALL BE REQUIRED TO SHOW (1) THAT A  SIMPLE  MAJORITY  OF  THE
OWNERSHIP OF THE FIRM, IN TERMS OF FINANCIAL INTERESTS, INCLUDING OWNER-
SHIP-BASED  COMPENSATION,  AND  VOTING RIGHTS HELD BY THE FIRM'S OWNERS,
BELONGS TO INDIVIDUALS LICENSED TO PRACTICE PUBLIC ACCOUNTANCY  IN  SOME
STATE,  AND  (2)  THAT  ALL  MEMBERS  OF  A FOREIGN LIMITED PROFESSIONAL
SERVICE LIMITED LIABILITY COMPANY, WHOSE PRINCIPAL PLACE OF BUSINESS  IS
IN THIS STATE, AND WHO ARE ENGAGED IN THE PRACTICE OF PUBLIC ACCOUNTANCY
IN  THIS  STATE,  HOLD  A VALID LICENSE ISSUED UNDER SECTION 7404 OF THE
EDUCATION LAW OR ARE PUBLIC ACCOUNTANTS LICENSED UNDER SECTION  7405  OF
THE  EDUCATION  LAW, ALTHOUGH FIRMS MAY INCLUDE NON-LICENSEE OWNERS, THE
FIRM AND ITS OWNERS MUST COMPLY WITH  RULES  PROMULGATED  BY  THE  STATE
BOARD  FOR  PUBLIC  ACCOUNTANCY.   NOTWITHSTANDING THE FOREGOING, A FIRM
REGISTERED UNDER THIS SECTION MAY NOT HAVE NON-LICENSEE  OWNERS  IF  THE
FIRM'S NAME INCLUDES THE WORDS "CERTIFIED PUBLIC ACCOUNTANT," OR "CERTI-
FIED  PUBLIC  ACCOUNTANTS,"  OR  THE ABBREVIATIONS "CPA" OR "CPAS." EACH
NON-LICENSEE OWNER OF A FIRM THAT IS REGISTERED UNDER THIS SECTION SHALL
BE (1) A NATURAL PERSON WHO ACTIVELY PARTICIPATES IN THE BUSINESS OF THE
FIRM OR ITS AFFILIATED ENTITIES, OR (2) AN ENTITY,  INCLUDING,  BUT  NOT
LIMITED  TO,  A  PARTNERSHIP  OR PROFESSIONAL CORPORATION, PROVIDED EACH
BENEFICIAL OWNER OF AN EQUITY INTEREST  IN  SUCH  ENTITY  IS  A  NATURAL
PERSON  WHO  ACTIVELY PARTICIPATES IN THE BUSINESS CONDUCTED BY THE FIRM
OR ITS AFFILIATED ENTITIES. FOR PURPOSES OF THIS SUBDIVISION,  "ACTIVELY
PARTICIPATE"  MEANS TO PROVIDE SERVICES TO CLIENTS OR TO OTHERWISE INDI-
VIDUALLY TAKE PART IN THE DAY-TO-DAY BUSINESS OR MANAGEMENT OF THE FIRM.
  (f) "Professional partnership" means (1) a partnership without limited
partners each of whose partners is a professional authorized by  law  to
render a professional service within this state, (2) a partnership with-
out  limited partners each of whose partners is a professional, at least
one of whom is authorized by law to render a professional service within
this state or (3) a partnership without limited partners authorized  by,
or  holding a license, certificate, registration or permit issued by the
licensing authority pursuant to the education law to  render  a  profes-
sional  service within this state; except that all partners of a profes-
sional partnership that provides medical services in this state must  be
licensed  pursuant to article 131 of the education law to practice medi-
cine in this state and all partners of a professional  partnership  that
provides  dental  services  in  this  state must be licensed pursuant to
article 133 of the education law to practice dentistry  in  this  state;
except  that  all  partners  of a professional partnership that provides
veterinary services in this state must be licensed pursuant  to  article
135  of the education law to practice veterinary medicine in this state;
and further except that all partners of a professional partnership  that
provides  professional  engineering, land surveying, geologic, architec-
tural, and/or landscape architectural services in  this  state  must  be
licensed  pursuant to article 145, article 147 and/or article 148 of the
education law to practice one or more of such professions.  WITH RESPECT
TO A PROFESSIONAL PARTNERSHIP WHICH PROVIDES PUBLIC ACCOUNTANCY SERVICES
AS SUCH SERVICES ARE DEFINED IN ARTICLE 149 OF THE EDUCATION  LAW,  EACH
MEMBER  OF  SUCH PROFESSIONAL PARTNERSHIP WHOSE PRINCIPAL PLACE OF BUSI-
NESS IS IN THIS STATE AND  WHO  PROVIDES  PUBLIC  ACCOUNTANCY  SERVICES,
SHALL  BE LICENSED PURSUANT TO ARTICLE 149 OF THE EDUCATION LAW TO PRAC-
TICE PUBLIC ACCOUNTANCY. NOTWITHSTANDING ANY OTHER PROVISIONS OF  LAW  A
PROFESSIONAL  PARTNERSHIP  FORMED  TO LAWFULLY ENGAGE IN THE PRACTICE OF
PUBLIC ACCOUNTANCY, AS SUCH PRACTICE IS RESPECTIVELY DEFINED UNDER ARTI-
CLE 149 OF THE EDUCATION LAW SHALL BE REQUIRED TO SHOW (1) THAT A SIMPLE

A. 5964                            22

MAJORITY OF THE OWNERSHIP OF THE FIRM, IN TERMS OF FINANCIAL  INTERESTS,
INCLUDING  OWNERSHIP-BASED  COMPENSATION,  AND VOTING RIGHTS HELD BY THE
FIRM'S OWNERS,  BELONGS  TO  INDIVIDUALS  LICENSED  TO  PRACTICE  PUBLIC
ACCOUNTANCY IN SOME STATE, AND (2) THAT ALL MEMBERS OF A LIMITED PROFES-
SIONAL  PARTNERSHIP, WHOSE PRINCIPAL PLACE OF BUSINESS IS IN THIS STATE,
AND WHO ARE ENGAGED IN THE PRACTICE OF PUBLIC ACCOUNTANCY IN THIS STATE,
HOLD A VALID LICENSE ISSUED UNDER SECTION 7404 OF THE EDUCATION  LAW  OR
ARE PUBLIC ACCOUNTANTS LICENSED UNDER SECTION 7405 OF THE EDUCATION LAW.
ALTHOUGH  FIRMS MAY INCLUDE NON-LICENSEE OWNERS, THE FIRM AND ITS OWNERS
MUST COMPLY WITH RULES PROMULGATED BY THE STATE BOARD FOR PUBLIC ACCOUN-
TANCY. NOTWITHSTANDING THE  FOREGOING,  A  FIRM  REGISTERED  UNDER  THIS
SECTION MAY NOT HAVE NON-LICENSEE OWNERS IF THE FIRM'S NAME INCLUDES THE
WORDS  "CERTIFIED PUBLIC ACCOUNTANT," OR "CERTIFIED PUBLIC ACCOUNTANTS,"
OR THE ABBREVIATIONS "CPA" OR "CPAS." EACH NON-LICENSEE OWNER OF A  FIRM
THAT  IS REGISTERED UNDER THIS SECTION SHALL BE (1) A NATURAL PERSON WHO
ACTIVELY PARTICIPATES IN THE BUSINESS OF  THE  FIRM  OR  ITS  AFFILIATED
ENTITIES, OR (2) AN ENTITY, INCLUDING, BUT NOT LIMITED TO, A PARTNERSHIP
OR PROFESSIONAL CORPORATION, PROVIDED EACH BENEFICIAL OWNER OF AN EQUITY
INTEREST IN SUCH ENTITY IS A NATURAL PERSON WHO ACTIVELY PARTICIPATES IN
THE  BUSINESS  CONDUCTED  BY  THE  FIRM  OR ITS AFFILIATED ENTITIES. FOR
PURPOSES OF THIS SUBDIVISION, "ACTIVELY PARTICIPATE"  MEANS  TO  PROVIDE
SERVICES  TO  CLIENTS  OR  TO  OTHERWISE  INDIVIDUALLY  TAKE PART IN THE
DAY-TO-DAY BUSINESS OR MANAGEMENT OF THE FIRM.
  S 21. This act shall take effect immediately; provided  that  sections
eleven,  thirteen,  fifteen, eighteen, and twenty of this act shall take
effect on the same date as sections 25, 26, 27, 22 and 23, respectively,
of chapter 475 of the laws of 2014 take effect.