HJC/HCEDC/HB 296
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AN ACT
RELATING TO THE 1999 PUBLIC ACCOUNTANCY ACT; AMENDING
DEFINITIONS; CHANGING QUALIFICATIONS FOR CERTIFICATION;
REQUIRING PRACTITIONERS FROM OTHER STATES AND JURISDICTIONS
TO HAVE LICENSE REQUIREMENTS THAT ARE COMPARABLE TO OR EXCEED
NEW MEXICO'S REQUIREMENTS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 61-28B-3 NMSA 1978 (being Laws 1999,
Chapter 179, Section 3, as amended) is amended to read:
"61-28B-3. DEFINITIONS.--As used in the 1999 Public
Accountancy Act:
A. "accounting experience" means providing service
or advice involving the use of accounting, attest, management
advisory, financial advisory, tax or consulting skills as
verified by a certified public accountant who meets
requirements prescribed by the board; provided that
experience gained through employment in government, industry,
academia or public practice shall be accepted;
B. "attest" means to provide the following
services:
(1) an audit or other engagement performed
in accordance with the statements on auditing standards;
(2) a review of a financial statement
performed in accordance with the statement on standards for HJC/HCEDC/HB 296
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accounting and review services;
(3) an engagement performed in accordance
with the statements on standards for attestation engagements
adopted by the board; and
(4) an engagement to be performed in
accordance with the auditing standards of the public company
accounting oversight board;
C. "board" means the New Mexico public accountancy
board;
D. "certificate" means the legal recognition
issued to identify a certified public accountant or a
registered public accountant pursuant to the 1999 Public
Accountancy Act or prior law;
E. "certified public accountant" means a person
certified by this state or by another state to practice
public accountancy and use the designation;
F. "comparable licensure requirements" means
requirements that are comparable to or exceed the education,
examination and accounting experience requirements of
Paragraph (1) of Subsection A of Section 61-28B-26 NMSA 1978,
as determined by the board;
G. "compilation" means a service provided to
management, applying accounting and financial reporting
expertise, in the presentation of financial statements and
reports without undertaking to obtain or provide assurance HJC/HCEDC/HB 296
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that there are no material modifications that should be made
to the financial statements or reports to be in accordance
with the applicable financial reporting framework;
H. "contingent fee" means a fee established for
the performance of a service pursuant to an arrangement in
which no fee will be charged unless a specific finding or
result is attained or upon which the amount of the fee is
dependent upon a finding or result. "Contingent fee" does
not mean a fee set by the court or a public authority on a
tax matter;
I. "director" means the executive director of the
board;
J. "firm" means a sole proprietorship,
professional corporation, partnership, limited liability
company, limited liability partnership or other legal
business entity that practices public accountancy;
K. "licensee" means a person, certified public
accountant, certified public accountant firm, registered
public accountant or registered public accountant firm
authorized to do business in New Mexico pursuant to the
provisions of the 1999 Public Accountancy Act or prior law;
L. "peer review" means a study, appraisal or
review of one or more aspects of the professional work of a
firm by a certified public accountant who is not affiliated
with the firm being reviewed; HJC/HCEDC/HB 296
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M. "permit" means the annual authority granted to
practice as a certified public accountant firm or a
registered public accountant firm;
N. "practice" means performing or offering to
perform public accountancy for a client or potential client
by a person who makes a representation to the public as being
a permit holder or registered firm;
O. "public accountancy" means the performance of
one or more kinds of services involving accounting or
auditing skills, including the issuance of reports on
financial statements, the performance of one or more kinds of
management, financial advisory or consulting services, the
preparation of tax returns or the furnishing of advice on tax
matters;
P. "registered public accountant" means a person
who is registered by the board to practice public accountancy
and use the designation; and
Q. "report" means a written communication issued
by an accountant or an accountant firm that:
(1) when used in reference to an audit,
review or examination service, expresses or disclaims an
opinion or a conclusion as to whether subject matter is
presented in accordance with specified criteria; and
(2) when used in reference to a compilation,
agreed-upon procedures service or other service that is not HJC/HCEDC/HB 296
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an audit, review or examination service, includes a statement
or implication that the accountant or accountant firm that
issued the report has special knowledge or competence in
accounting or attest services such as by the use of names or
titles indicating that the person or firm is an accountant or
an accountant firm or by the contents of the report itself."
SECTION 2. Section 61-28B-8 NMSA 1978 (being Laws 1999,
Chapter 179, Section 8, as amended) is amended to read:
"61-28B-8. QUALIFICATIONS FOR A CERTIFICATE AS A
CERTIFIED PUBLIC ACCOUNTANT.--
A. An applicant for a certificate shall complete
the application form provided by the board and demonstrate to
the board's satisfaction that the applicant:
(1) is of good moral character and lacks a
history of dishonest or felonious acts; and
(2) meets the education, accounting
experience and examination requirements of the board.
B. The board may refuse to grant a certificate on
the ground that the applicant failed to satisfy the
requirement of good moral character.
C. The education requirement for examination shall
be:
(1) a baccalaureate degree or its equivalent
from a college or university acceptable to the board plus
completion of an additional thirty semester hours of higher HJC/HCEDC/HB 296
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education in accounting or business;
(2) a baccalaureate degree from a college or
university acceptable to the board with a concentration in
accounting or business; or
(3) a master's degree from a college or
university acceptable to the board with a concentration in
accounting or business.
D. The education and accounting experience
requirement for a certificate shall be:
(1) a baccalaureate degree or its equivalent
from a college or university acceptable to the board plus
completion of an additional thirty semester hours of higher
education in accounting or business and evidence of at least
one year of accounting experience;
(2) a baccalaureate degree from a college or
university acceptable to the board with a concentration in
accounting or business and evidence of at least two years of
accounting experience; or
(3) a master's degree from a college or
university acceptable to the board with a concentration in
accounting or business and evidence of at least one year of
accounting experience.
E. The examination for certification shall be
offered continuously via a computer-based testing system at a
designated testing center and shall test an applicant's HJC/HCEDC/HB 296
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knowledge of the subjects of accounting and auditing and
other related subjects as prescribed by the board. The board
shall prescribe the method of applying for the examination
and the dissemination of scores, and it shall rely on the
American institute of certified public accountants for the
grading of the examination. The board may use all or any
part of the uniform certified public accountant examination
services of the national association of state boards of
accountancy to perform administrative services with respect
to the examination. The board or its designee shall report
all eligibility and score data to the national candidate
database, and it shall, to the extent possible, provide that
the passing scores are uniform with passing scores of other
states.
F. An applicant must pass all sections of the
examination to qualify for a certificate. A passing scaled
score for each section shall be seventy-five percent.
Sections may be taken individually and in any order. Credit
for any section passed shall be valid for thirty months from
the date the passing score is released to the applicant,
without having to attain a minimum score on any failed test
section and without regard to whether the applicant has taken
other test sections. An applicant must pass all four test
sections within a continuous thirty-month period, which
begins on the date that the first passing scores are released HJC/HCEDC/HB 296
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to the applicant. If all four test sections are not passed
within the continuous thirty-month period, credit for any
test section passed outside the thirty-month period will
expire, and that test section must be retaken.
G. An applicant shall be given credit for
examination sections passed in another state if such credit
would have been given in New Mexico.
H. The board may waive or defer requirements of
this section regarding the circumstances in which sections of
the examination must be passed, upon a showing that, by
reason of circumstances beyond the applicant's control, the
applicant was unable to meet the requirement."
SECTION 3. Section 61-28B-9 NMSA 1978 (being Laws 1999,
Chapter 179, Section 9, as amended) is amended to read:
"61-28B-9. ISSUANCE AND RENEWAL OF CERTIFICATE--
MAINTENANCE OF COMPETENCY--NONRESIDENT MAINTENANCE OF
COMPETENCY REQUIREMENTS.--
A. The board shall grant or renew a certificate
upon application and demonstration that the applicant's
qualifications are in accordance with the 1999 Public
Accountancy Act.
B. The board may establish by rule for the
issuance of annual certificates and may prescribe the
expiration date of certificates. Failure to pay the renewal
fee shall be cause for the board to withhold renewal of a HJC/HCEDC/HB 296
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certificate without prior hearing pursuant to the provisions
of the Uniform Licensing Act. If the renewal fee and
delinquency fee are not paid within ninety days after the
expiration date of the license, the certificate shall be
subject to cancellation. A certificate holder whose
certificate has been canceled for failure to pay the annual
renewal fee may secure reinstatement of the certificate only
upon application and payment of the renewal fee and
reinstatement fee and upon approval by the board.
C. The board shall grant or deny an application
for certification no later than one hundred twenty days after
the complete application is filed.
D. If an applicant appeals the decision of the
board to deny a certificate, the board may issue a
provisional certificate for no longer than ninety days while
the board reconsiders its decision.
E. To renew a certificate, a certificate holder
shall provide satisfactory proof to the board of continuing
professional education that is designed to maintain
competency. Continuing professional education courses shall
comply with board rules. The board may create an exception
to the requirement to maintain continuing professional
education for certificate holders who do not provide services
to the public. A certificate holder granted such an
exception must place the word "inactive" or "retired" HJC/HCEDC/HB 296
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adjacent to the certificate holder's certified public
accountant title or registered public accountant title on a
business card, letterhead or other document or device, except
for a board-issued certificate.
F. A nonresident certificate holder seeking to
renew a certificate shall be determined to have met the
continuing professional education requirement in this state
if the nonresident has met the continuing professional
education requirement in the state where the nonresident's
principal place of business is located; provided that:
(1) the nonresident signs a statement on the
renewal application that the nonresident has met the
continuing professional education requirement in the state
where the nonresident's principal place of business is
located; and
(2) the state where the nonresident's
principal place of business is located requires continuing
professional education.
G. An applicant for initial issuance or renewal of
a certificate pursuant to this section shall list all foreign
and domestic jurisdictions in which the applicant has applied
for or holds a designation to practice public accountancy.
The applicant shall also list any past denial, revocation or
suspension of a certificate, license or permit. An applicant
or certificate holder shall notify the board in writing, HJC/HCEDC/HB 296
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within thirty days of the occurrence of any issuance, denial,
revocation or suspension of a designation or commencement of
a disciplinary or enforcement action by any jurisdiction."
SECTION 4. Section 61-28B-11 NMSA 1978 (being Laws
1999, Chapter 179, Section 11, as amended) is amended to
read:
"61-28B-11. CERTIFICATES ISSUED TO HOLDERS OF A
CERTIFICATE, LICENSE OR PERMIT ISSUED BY ANOTHER STATE--
EXCEPTION.--
A. The board may issue a certificate to a holder
of a certificate, license or permit issued by another state
upon a showing that the applicant:
(1) passed the examination required for
issuance of the applicant's certificate with scores that
would have been passing grades at the time in New Mexico;
(2) passed the examination upon which the
applicant's out-of-state certificate was based and has met
the accounting experience requirements within the ten years
immediately preceding the application; and
(3) if the applicant's certificate, license
or permit was issued more than four years prior to
application, has fulfilled the board's requirements of
continuing professional education.
B. An individual shall be granted the privilege to
perform, or offer to perform, services without notice to the HJC/HCEDC/HB 296
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board or being certified, if the individual holds a valid
license or permit in good standing as a certified public
accountant or its equivalent issued by another jurisdiction
in the United States; provided that the licensee, at the time
of licensure, was required to provide evidence of having
successfully completed a qualifying exam in accordance with
the requirements of the licensing jurisdiction.
C. The board may issue a certificate to a holder
of a foreign designation with comparable licensure
requirements as determined by the board to be comparable to
or to exceed the education, examination and accounting
experience requirements of Paragraph (1) of Subsection A of
Section 61-28B-26 NMSA 1978; provided that:
(1) the foreign authority that granted the
designation makes similar provision to allow a person who
holds a valid certificate issued by New Mexico to obtain such
foreign authority's comparable designation;
(2) the foreign designation:
(a) was duly issued by a foreign
authority that regulates the practice of public accountancy
and the foreign designation has not expired or been revoked
or suspended;
(b) entitles the holder to issue
reports upon financial statements; and
(c) was issued upon the basis of HJC/HCEDC/HB 296
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educational, examination and accounting experience
requirements established by the foreign authority or by law;
and
(3) the applicant:
(a) received the designation based on
comparable licensure requirements at the time the foreign
designation was granted;
(b) completed an accounting experience
requirement in the jurisdiction that granted the foreign
designation that has comparable licensure requirements or has
completed four years of professional accounting experience in
New Mexico; and
(c) passed a uniform qualifying
examination on national standards and an examination on the
laws, rules and code of ethical conduct in effect in New
Mexico that is acceptable to the board.
D. An applicant for initial issuance or renewal of
a certificate pursuant to this section shall list all foreign
and domestic jurisdictions in which the applicant has applied
for or holds a designation to practice public accountancy.
The applicant shall also list any past denial, revocation or
suspension of a certificate, license or permit. An applicant
or certificate holder shall notify the board in writing,
within thirty days of the occurrence of any issuance, denial,
revocation or suspension of a designation or commencement of HJC/HCEDC/HB 296
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a disciplinary or enforcement action by any jurisdiction.
E. The board has the sole authority to interpret
the application of the provisions of this section."
SECTION 5. Section 61-28B-13 NMSA 1978 (being Laws
1999, Chapter 179, Section 13, as amended) is amended to
read:
"61-28B-13. FIRM PERMITS TO PRACTICE, ATTEST
EXPERIENCE, PEER REVIEW.--
A. The board may grant or renew a permit to
practice as a certified public accountant firm to an
applicant that demonstrates its qualifications in accordance
with this section.
B. A permit issued pursuant to this section shall
be required for the following:
(1) a firm with an office in New Mexico
performing attest services as defined by the 1999 Public
Accountancy Act;
(2) a firm with an office in New Mexico that
uses the title "CPA" or "CPA firm"; or
(3) a firm that does not have an office in
New Mexico but offers or renders attest services for a client
in New Mexico, except as provided in Subsection C of this
section.
C. A firm that does not have an office in New
Mexico may offer or render attest services for a client in HJC/HCEDC/HB 296
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New Mexico and may use the title "CPA" or "CPA firm" without
a permit issued pursuant to this section only if:
(1) the firm offers or renders the services
through an individual that:
(a) holds a valid license or permit in
good standing as a certified public accountant or equivalent
issued by another jurisdiction in the United States if, at
the time of licensure, the individual showed evidence of
having successfully completed a qualifying exam in accordance
with the licensing jurisdiction; and
(b) consents to the disciplinary
authority of the board;
(2) the firm meets the requirements of
Paragraph (1) of Subsection H of this section; and
(3) the firm meets the requirements of
Subsection L of this section.
D. A firm not subject to the requirements of
Subsection B or C of this section may perform other nonattest
professional services while using the title "CPA" or "CPA
firm" in New Mexico without a permit issued pursuant to this
section only if:
(1) the firm performs services through a
person with practice privileges pursuant to Section 61-28B-26
NMSA 1978; and
(2) the firm can lawfully perform services HJC/HCEDC/HB 296
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in the state that is the firm's principal place of business.
E. Permits shall be issued and renewed for periods
of not more than two years, expiring on June 30 of the year
of expiration. Failure to pay the renewal fee shall be cause
for the board to withhold renewal of a permit without prior
hearing pursuant to the provisions of the Uniform Licensing
Act. If the renewal fee and delinquency fee are not paid
within ninety days after the expiration of the permit, the
permit shall be subject to cancellation. A firm whose permit
has been canceled for failure to pay the annual renewal fee
may secure reinstatement of the permit upon application and
payment of the renewal fee and upon approval by the board.
F. The board shall grant or deny an application
for a permit no later than ninety days after the complete
application is filed.
G. If an applicant appeals the decision of the
board to deny a permit, the board may issue a provisional
permit for no longer than ninety days while the board
reconsiders its decision.
H. An applicant for initial issuance or renewal of
a permit shall demonstrate that:
(1) a simple majority of the ownership of
the firm, in terms of financial interests, profits, losses,
dividends, distributions, options, redemptions and voting
rights of all partners, officers, shareholders, members or HJC/HCEDC/HB 296
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managers, belongs to holders of a certificate who are
licensed in some state. A partner, officer, shareholder,
member or manager, whose principal place of business is in
New Mexico, and who performs professional services in New
Mexico, must hold a valid certificate. The firm and all
owners must comply with the 1999 Public Accountancy Act. A
person with practice privileges pursuant to Section 61-28B-26
NMSA 1978 who performs services for which a permit is
required pursuant to this section shall not be required to
obtain a certificate from New Mexico pursuant to Section
61-28B-9 NMSA 1978. A firm may include owners who are not
certificate holders; provided that:
(a) the firm designates a New Mexico
certificate holder, or in the case of a firm that must have a
permit, a licensee of another state who meets the
requirements of Subsection A of Section 61-28B-26 NMSA 1978,
who is responsible for the proper registration of the firm
and identifies that person to the board;
(b) all owners who are not certificate
holders are active participants in the certified public
accountant firm or registered public accountant firm or
affiliated entities; and
(c) the firm complies with the 1999
Public Accountancy Act; and
(2) a certificate holder, or a person HJC/HCEDC/HB 296
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qualifying for practice privileges pursuant to Section
61-28B-26 NMSA 1978, who is responsible for supervising
attest services or signs or authorizes someone to sign the
accountant's report on behalf of the firm meets the
accounting experience requirements set out in the
professional standards for such services.
I. An applicant for initial issuance or renewal of
a permit shall be required to register each office of the
firm within New Mexico with the board and to show that all
attest services rendered in this state are under the charge
of a person holding a valid certificate issued pursuant to
the 1999 Public Accountancy Act or the corresponding
provision of prior law or by some other state.
J. An applicant for initial issuance or renewal of
a permit shall list all foreign and domestic jurisdictions in
which it has applied for or holds permits as a certified
public accountant firm and list any past denial, revocation
or suspension of a permit by any jurisdiction. Each permit
holder or applicant shall notify the board in writing, within
thirty days of the occurrence of a change in the identities
of partners, officers, shareholders, members or managers
whose principal place of business is in this state, a change
in the number or location of offices within this state, a
change in the identity of the persons in charge of such
offices and any issuance, denial, revocation or suspension of HJC/HCEDC/HB 296
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a permit by another jurisdiction.
K. A firm that falls out of compliance with the
provisions of the 1999 Public Accountancy Act due to changes
in firm ownership or personnel shall take corrective action
to bring the firm back into compliance as quickly as
possible. The board may grant a six-month period for a firm
to take the corrective action. Failure to bring the firm
back into compliance within six months shall result in the
suspension or revocation of the firm permit.
L. As a condition to permit renewal, the board
shall require the applicant to undergo a peer review
conducted in accordance with board rules. The review shall
include a verification that a person in the firm, or a person
qualifying for practice privileges pursuant to Section
61-28B-26 NMSA 1978, who is responsible for supervising
attest services and signs or authorizes someone to sign the
accountant's report on behalf of the firm meets the
accounting experience requirements set out in the
professional standards for the services as required by the
board.
M. If a partner, shareholder or member is a legal
business entity, that legal business entity must be a firm.
N. Attest services may only be provided by a
certificate holder or a member of a firm that satisfies the
requirements of this section and Sections 61-28B-8 and HJC/HCEDC/HB 296
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61-28B-13 NMSA 1978. Attest services may not be performed by
a certificate holder who is a member of a firm that does not
meet the certificate holder's ownership requirements set
forth in this section."
SECTION 6. Section 61-28B-17 NMSA 1978 (being Laws
1999, Chapter 179, Section 17, as amended) is amended to
read:
"61-28B-17. ENFORCEMENT--UNLAWFUL ACTS.--
A. Except as otherwise provided in the 1999 Public
Accountancy Act, it is unlawful for a person to engage in
practice in New Mexico unless the person is a licensee.
B. Except as otherwise provided in the 1999 Public
Accountancy Act, no person shall issue a report or financial
statement for a person or a governmental unit or issue a
report using any form of language conventionally used
respecting an audit or review of financial statements, unless
the person holds a current license or permit. The state
auditor and the state auditor's auditing staff are considered
to be in the practice of public accountancy.
C. With the exception of persons cited in Section
61-28B-18 NMSA 1978, a person who prepares a financial
accounting and related statements and who is not the holder
of a certificate or a permit under the provisions of that act
shall use the following statement in the transmittal letter:
"I (we) have prepared the accompanying financial statements HJC/HCEDC/HB 296
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of (name of entity) as of (time period) and for the (time
period) ending (date). This presentation is limited to
preparing in the form of financial statements information
that is the representation of management (owners). I (we)
have not audited or reviewed the accompanying financial
statements and accordingly do not express an opinion or any
other form of assurance on them.".
D. No person shall indicate by title, designation,
abbreviation, sign, card or device that the person is a
certified public accountant or a registered public accountant
unless the person is currently certified by the board
pursuant to the 1999 Public Accountancy Act or is a firm
currently permitted by the board pursuant to that act.
Unless the person is a holder of a current certificate or
permit, no person shall use any title, initials or
designation intended to or substantially likely to indicate
to the public that the person is a certified public
accountant or registered public accountant.
E. No person shall engage in practice unless the
person:
(1) holds a valid certificate or current
permit;
(2) is an employee supervised by a licensee
pursuant to Section 61-28B-18 NMSA 1978 and not a partner,
officer, shareholder or member of a firm; or HJC/HCEDC/HB 296
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(3) is exempt from licensure pursuant to
Subparagraph (a) of Paragraph (1) of Subsection C of Section
61-28B-13 NMSA 1978.
F. No person or firm holding a certificate or
permit shall engage in practice using a professional or firm
name or designation that is misleading about the legal form
of the firm; provided, however, that names of one or more
former partners, shareholders or members may be included in
the name of a firm or its successors.
G. No person shall sell, offer to sell or
fraudulently obtain or furnish any certificate or permit nor
shall the person fraudulently register as a certified public
accountant or registered public accountant or practice in
this state without being granted a certificate or permit as
provided in the 1999 Public Accountancy Act.
H. A licensee or the licensee's firm shall not
receive a commission to recommend or refer a product or
service to a client or to recommend to anyone else a product
or service to be supplied by a client during the period the
licensee or the licensee's firm is engaged to perform the
following services for that client and during the period
covered by any historical financial statements involved in
the services:
(1) an audit or review of a financial
statement; HJC/HCEDC/HB 296
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(2) a compilation of a financial statement
when the licensee expects or might reasonably expect that a
third party will use the financial statement, and the
compilation report does not disclose the lack of independence
by the licensee; or
(3) an examination of prospective financial
information.
I. A licensee or the licensee's firm that is not
prohibited from receiving a commission by Subsection H of
this section and that is paid or expects to be paid a
commission shall disclose that fact in writing to the person
for whom the licensee or the licensee's firm performs a
service or refers or recommends a product or service. A
licensee or firm that accepts or pays a referral fee for a
service or to obtain a client shall disclose such acceptance
or payment to the client in writing.
J. A licensee or the licensee's firm shall not
charge or receive a contingent fee for a client for whom the
licensee or the licensee's firm performs the following
services:
(1) an audit or review of a financial
statement;
(2) a compilation of a financial statement
when the licensee expects or reasonably might expect that a
third party will use the financial statement and the HJC/HCEDC/HB 296
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compilation report does not disclose a lack of independence;
(3) an examination of prospective financial
information; or
(4) preparation of an original or amended
tax return or claim for tax refund, except in the case of
federal, state or other taxes in which the findings are those
of the tax authorities and not those of the licensee or in
the case of professional services for which fees are to be
fixed by courts or other public authorities and that are
therefore indeterminate in amount at the time the
professional services are undertaken.
K. No licensee shall sign or certify any financial
statements if the licensee knows the same to be materially
false or fraudulent.
L. For the purposes of this section, a person with
practice privileges pursuant to Section 61-28B-26 NMSA 1978
shall be deemed to have comparable licensure requirements to
a certificate holder pursuant to Section 61-28B-9 NMSA 1978.
Terms or references that refer to a certificate holder
pursuant to Section 61-28B-9 NMSA 1978 shall include a person
with practice privileges pursuant to Section 61-28B-26 NMSA
1978.
M. For the purposes of this section, a firm
practicing under Subsection C or D of Section 61-28B-13 NMSA
1978 may perform the services specified by the applicable HJC/HCEDC/HB 296
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provisions of the 1999 Public Accountancy Act and may use the
terms "CPA" or "CPA firm" without obtaining a permit. Terms
or references that refer to a firm holding a permit pursuant
to Subsection B of Section 61-28B-13 NMSA 1978 shall include
a firm practicing pursuant to Subsection C or D of Section
61-28B-13 NMSA 1978."
SECTION 7. Section 61-28B-26 NMSA 1978 (being Laws
1999, Chapter 179, Section 26, as amended) is amended to
read:
"61-28B-26. PRACTICE PRIVILEGE AND DISCIPLINE FOR A
CERTIFICATE HOLDER FROM ANOTHER STATE OR JURISDICTION--
REQUIREMENTS.--
A. Except as provided in Subsection D of this
section, a person whose principal place of business is not in
New Mexico shall be presumed to have met comparable licensure
requirements and may exercise all the practice privileges of
certificate holders of New Mexico without the need to obtain
a certificate pursuant to Section 61-28B-9 NMSA 1978 if the
person:
(1) holds a valid license as a certified
public accountant from any state that requires, as a
condition of licensure, that a person meet the education and
accounting experience requirements pursuant to Subsection D
of Section 61-28B-8 NMSA 1978; or
(2) holds a valid license or permit in good HJC/HCEDC/HB 296
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standing as a certified public accountant or its equivalent
from a jurisdiction in the United States; provided that the
licensee, at the time of licensure, was required to provide
evidence of having successfully completed a qualifying exam
in accordance with the requirements of the licensing
jurisdiction and the education and accounting experience
requirements pursuant to Subsection D of Section 61-28B-8
NMSA 1978.
B. Notwithstanding any other provision of law, a
person who qualifies for the practice privilege pursuant to
this section may offer or render professional services
whether in person or by mail, telephone or electronic means,
and no notice, fee or other submission shall be required of
the person.
C. A person licensed in another state exercising
the practice privilege afforded pursuant to this section
shall consent, as a condition of exercising the practice
privilege:
(1) to submit to the personal and subject-
matter jurisdiction and disciplinary authority of the board;
(2) to comply with the 1999 Public
Accountancy Act and the rules adopted by the board;
(3) to cease offering or rendering
professional attest services in New Mexico in the event the
license from the state of the person's principal place of HJC/HCEDC/HB 296
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business is no longer valid; and
(4) to the appointment of the state board
that issued the license as agent upon whom process may be
served in any action or proceeding by the New Mexico public
accountancy board against the licensee.
D. A person who qualifies for the practice
privileges pursuant to this section and who performs an
attest service shall meet the requirements of Section
61-28B-11 NMSA 1978.
E. A certificate or permit holder of New Mexico
that offers or renders an attest service or uses its
certified public accountant title in another state shall be
subject to disciplinary action in New Mexico for an act
committed in another state for which it would be subject to
discipline in the other state. The board shall investigate
any complaint made by the board of accountancy in another
state in accordance with the provisions of the 1999 Public
Accountancy Act."
SECTION 8. Section 61-28B-27 NMSA 1978 (being Laws
1999, Chapter 179, Section 27, as amended) is amended to
read:
"61-28B-27. FEES.--Except as provided in Section
61-1-34 NMSA 1978 and Subsection B of Section 61-28B-11 NMSA
1978, the board may collect from certificate holders, permit
holders, applicants and others the following fees: HJC/HCEDC/HB 296
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A. for examination, a fee not to exceed four
hundred dollars ($400) per examination section;
B. for certificate issuance or renewal, a fee not
to exceed one hundred seventy-five dollars ($175) per year;
provided, however, that the board may charge a biennial fee
of not more than twice the annual fee;
C. for firm permits, a fee not to exceed one
hundred dollars ($100) per year; provided, however, that the
board may charge a biennial fee of not more than twice the
annual fee;
D. for incomplete or delinquent continuing
education reports, certificate or permit renewals, a fee not
to exceed one hundred dollars ($100) each;
E. for preparing and providing licensure and
examination information to others, a fee not to exceed
seventy-five dollars ($75.00) per report;
F. reasonable administrative fees for such
services as research, record copies, duplicate or replacement
certificates or permits;
G. a fee for fingerprinting and background check
for an applicant for certification not to exceed one hundred
dollars ($100);
H. for certificate reinstatement, a fee not to
exceed one hundred seventy-five dollars ($175), plus past due
fees and penalties; HJC/HCEDC/HB 296
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I. for waiver to comply with continuing
professional education requirements, a fee not to exceed
seventy-five dollars ($75.00) per application; and
J. for reentry into active certificate status and
to comply with continuing education, a fee not to exceed
seventy-five dollars ($75.00) per application."
SECTION 9. EFFECTIVE DATE.--The effective date of the
provisions of this act is January 1, 2026.