§ 7406. Limited permits and practice privilege. 1. Limited permits. On
recommendation of the board, the department may issue a limited permit
to an applicant of good moral character, who is the holder of a
certificate, license or degree in a foreign country constituting a
recognized qualification for the performance in such country of the acts
set forth in section seventy-four hundred one of this article, provided
the applicant has professional qualifications that are determined by the
board to be significantly comparable to the licensure requirements for
certified public accountancy pursuant to this article, and the applicant
resides or has a place for the regular transaction of business within
the state, and equal recognition is granted by the foreign country
concerned to certified public accountants or public accountants licensed
in the United States. Such limited permit shall be valid for a period of
two years and may be renewed on recommendation of the board. Such permit
shall authorize the applicant to use only the title or designation under
which he or she is generally known in his or her own country, followed
by the name of the country from which he or she received his or her
certificate, license or degree, notwithstanding the provisions of
subdivision two of section seventy-four hundred eight of this article.
The fee for each limited permit and each renewal shall be established in
regulation by the board of regents.

2. Practice privilege. a. Except as otherwise provided in subparagraph
two or three of paragraph f of this subdivision, a certified public
accountant, licensed by another state which the board of regents has
determined to have substantially equivalent certified public accountant
licensure requirements, or whose individual licensure qualifications are
verified by the department to be substantially equivalent to New York's
requirements, and in good standing, who intends to perform any of the
services in subdivision one, two or three of section seventy-four
hundred one of this article may practice public accountancy in this
state, if the certified public accountant:

(1) holds a valid license to practice public accountancy in the other
state, and

(2) practices public accountancy in another state that is his or her
principal place of business.

b. The practice privilege allows such certified public accountant, who
meets the requirements of paragraph a of this subdivision to practice
public accountancy in this state.

c. An individual who has been granted practice privileges under this
section who performs any of the services in subdivision one or two of
section seventy-four hundred one of this article may only do so through
a firm which has obtained a registration under section seventy-four
hundred eight of this article. Such an individual, as well as an
individual with a New York license who does not have a principal place
of business in New York, may provide services in subdivision three of
section seventy-four hundred one of this article through a firm of
certified public accountants that does not have a registration in this
state but that holds a valid license, registration, or permit in another
state.

d. Any certified public accountant who practices in this state
pursuant to this section, and any firm that employs such certified
public accountant to provide such services in New York, consents to all
of the following as a condition of the exercise of such practice
privilege:

(1) to the personal and subject matter jurisdiction and disciplinary
authority of the board of regents as if the practice privilege is a
license, and an individual with a practice privilege is a licensee;

(2) to comply with this article, the rules of the board of regents and
the regulations of the commissioner; and

(3) to the appointment of the secretary of state or other public
official acceptable to the department, in the certified public
accountant's state of licensure or the state in which the firm has its
principal place of business, as the certified public accountant or
firm's agent upon whom process may be served in any action or proceeding
by the department against such certified public accountant or firm.

e. For purposes of this subdivision, the board of regents may
determine that nationally-recognized certified public accountant
licensure requirements are substantially equivalent to New York's
requirements, such that an individual licensed in a state determined to
have licensure requirements substantially equivalent to the
nationally-recognized CPA licensure requirements, or an individual whose
licensure qualifications are determined to be substantially equivalent
to the nationally-recognized CPA licensure requirements, may practice
under the practice privilege pursuant to the requirements contained in
this subdivision.

f. (1) A person who wishes to practice public accountancy in this
state but does not meet the requirements of paragraph a of this
subdivision is subject to the full licensing and registration
requirements of this article.

(2) In the event the license from the other state of the certified
public accountant's principal place of business is no longer valid or in
good standing, or that the certified public accountant has had any final
disciplinary action taken by the licensing or disciplinary authority of
any other state concerning the practice of public accountancy that has
resulted in (i) the suspension or revocation of his or her license, or
(ii) other disciplinary action against his or her license that arises
from (a) gross negligence, recklessness or intentional wrongdoing
relating to the practice of public accountancy, (b) fraud or
misappropriation of funds relating to the practice of public
accountancy, or (c) preparation, publication, or dissemination of false,
fraudulent, or materially incomplete or misleading financial statements,
reports or information relating to the practice of public accountancy,
the certified public accountant shall cease offering to perform or
performing such services in this state individually and on behalf of his
or her firm, until and unless such certified public accountant receives
written permission from the department to resume the practice of public
accountancy in this state pursuant to subparagraph three of this
paragraph.

(3) Any certified public accountant who, within the last seven years,
immediately preceding the date on which he or she wishes to practice in
New York, (i) has been the subject of any final disciplinary action
taken against him or her by the licensing or disciplinary authority of
any other jurisdiction with respect to any professional license or has
any charges of professional misconduct pending against him or her in any
other jurisdiction, or (ii) has had his or her license in another
jurisdiction reinstated after a suspension or revocation of said
license, or (iii) has been denied issuance or renewal of a professional
license or certificate in any other jurisdiction for any reason other
than an inadvertent administrative error, or (iv) has been convicted of
a crime or is subject to pending criminal charges in any jurisdiction,
shall so notify the department, on a form prescribed by the department,
and shall not practice public accountancy in this state under paragraph
a of this subdivision until he or she has received from the department
written permission to do so. In determining whether the certified public
accountant shall be allowed to practice in this state, the department
shall follow the procedure to determine whether an applicant for
licensure is of good moral character. Anyone failing to provide the
notice required by this paragraph shall be subject to the personal and
subject matter jurisdiction and disciplinary authority of the board of
regents as if the practice privilege is a license, and an individual
with a practice privilege is a licensee, and may be deemed to be
practicing in violation of section sixty-five hundred twelve of this
title.

g. (1) Notwithstanding subparagraph two of paragraph a of this
subdivision or any other inconsistent law or rule to the contrary, a
certified public accountant licensed by another state and in good
standing who otherwise meets the practice privilege requirements under
this section and files an application for licensure under section
seventy-four hundred four of this article may continue to practice under
such privilege for a period coterminous with the period during which his
or her application for licensure remains pending with the department,
including any period after the certified public accountant establishes a
principal place of business in New York while his or her application is
pending.

(2) Nothing in this section shall limit the applicability of section
seventy-four hundred seven of this article.