New Mexico 2025 Regular Session

New Mexico House Bill HB296 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	~~HJC/HCEDC/HB 296~~
2		-	~~Page 1~~
	1	+	underscored material = new
	2	+	[bracketed material] = delete
3	3		1
4	4		2
5	5		3
6	6		4
7	7		5
8	8		6
9	9		7
10	10		8
11	11		9
12	12		10
13	13		11
14	14		12
15	15		13
16	16		14
17	17		15
18	18		16
19	19		17
20	20		18
21	21		19
22	22		20
23	23		21
24	24		22
25	25		23
26	26		24
27	27		25
	28	+	HOUSE BILL 296
	29	+	57
	30	+	TH LEGISLATURE
	31	+	-
	32	+
	33	+	STATE
	34	+
	35	+	OF
	36	+
	37	+	NEW
	38	+
	39	+	MEXICO
	40	+
	41	+	-
	42	+	FIRST SESSION
	43	+	,
	44	+
	45	+	2025
	46	+	INTRODUCED BY
	47	+	Cristina Parajón
28	48		AN ACT
29	49		RELATING TO THE 1999 PUBLIC ACCOUNTANCY ACT; AMENDING
30	50		DEFINITIONS; CHANGING QUALIFICATIONS FOR CERTIFICATION;
31		-	REQUIRING PRACTITIONERS FROM OTHER STATES AND JURISDICTIONS
32		-	TO HAVE LICENSE REQUIREMENTS THAT ARE COMPARABLE TO OR EXCEED
33		-	~~NEW~~ MEXICO'S REQUIREMENTS.
	51	+	REQUIRING PRACTITIONERS FROM OTHER STATES AND JURISDICTIONS TO
	52	+	HAVE LICENSE REQUIREMENTS THAT ARE COMPARABLE TO OR EXCEED NEW
	53	+	MEXICO'S REQUIREMENTS.
34	54		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
35	55		SECTION 1. Section 61-28B-3 NMSA 1978 (being Laws 1999,
36	56		Chapter 179, Section 3, as amended) is amended to read:
37	57		"61-28B-3. DEFINITIONS.--As used in the 1999 Public
38	58		Accountancy Act:
39	59		A. "accounting experience" means providing service
40	60		or advice involving the use of accounting, attest, management
41	61		advisory, financial advisory, tax or consulting skills as
42	62		verified by a certified public accountant who meets
43		-	requirements prescribed by the board; provided that
44		-	experience gained through employment in government, industry,
45		-	academia or public practice shall be accepted;
46		-	B. "attest" means to provide the following
47		-	services:
48		-	(1) an audit or other engagement performed
49		-	in accordance with the statements on auditing standards;
50		-	(2) a review of a financial statement
51		-	performed in accordance with the statement on standards for HJC/HCEDC/HB 296
52		-	Page 2
	63	+	.229431.5 underscored material = new
	64	+	[bracketed material] = delete
53	65		1
54	66		2
55	67		3
56	68		4
57	69		5
58	70		6
59	71		7
60	72		8
61	73		9
62	74		10
63	75		11
64	76		12
65	77		13
66	78		14
67	79		15
68	80		16
69	81		17
70	82		18
71	83		19
72	84		20
73	85		21
74	86		22
75	87		23
76	88		24
77	89		25
	90	+	requirements prescribed by the board; provided that experience
	91	+	gained through employment in government, industry, academia or
	92	+	public practice shall be accepted;
	93	+	[A.] B. "attest" means to provide the following
	94	+	services:
	95	+	(1) an audit or other engagement performed in
	96	+	accordance with the statements on auditing standards;
	97	+	(2) a review of a financial statement
	98	+	performed in accordance with the statement on standards for
78	99		accounting and review services;
79		-	(3) an engagement performed in accordance
80		-	~~with~~ the statements on standards for attestation engagements
81		-	~~adopted~~ by the board; and
	100	+	(3) an engagement performed in accordance with
	101	+	the statements on standards for attestation engagements adopted
	102	+	by the board; and
82	103		(4) an engagement to be performed in
83	104		accordance with the auditing standards of the public company
84	105		accounting oversight board;
85		-	C. "board" means the New Mexico public ~~accountancy~~
86		-	board;
87		-	D. "certificate" means the legal recognition
	106	+	[B.] C. "board" means the New Mexico public
	107	+	accountancy board;
	108	+	[C.] D. "certificate" means the legal recognition
88	109		issued to identify a certified public accountant or a
89	110		registered public accountant pursuant to the 1999 Public
90	111		Accountancy Act or prior law;
91		-	E. "certified public accountant" means a ~~person~~
92		-	certified by this state or by another state to practice
	112	+	[D.] E. "certified public accountant" means a
	113	+	person certified by this state or by another state to practice
93	114		public accountancy and use the designation;
94		-	F. "comparable licensure requirements" means
95		-	requirements that are comparable to or exceed the education,
96		-	examination and accounting experience requirements of
97		-	Paragraph (1) of Subsection A of Section 61-28B-26 NMSA 1978,
98		-	as determined by the board;
99		-	G. "compilation" means a service provided to
100		-	management, applying accounting and financial reporting
101		-	expertise, in the presentation of financial statements and
102		-	reports without undertaking to obtain or provide assurance HJC/HCEDC/HB 296
103		-	Page 3
	115	+	.229431.5
	116	+	- 2 - underscored material = new
	117	+	[bracketed material] = delete
104	118		1
105	119		2
106	120		3
107	121		4
108	122		5
109	123		6
110	124		7
111	125		8
112	126		9
113	127		10
114	128		11
115	129		12
116	130		13
117	131		14
118	132		15
119	133		16
120	134		17
121	135		18
122	136		19
123	137		20
124	138		21
125	139		22
126	140		23
127	141		24
128	142		25
129		-	that there are no material modifications that should be made
130		-	to the financial statements or reports to be in accordance
131		-	with the applicable financial reporting framework;
132		-	H. "contingent fee" means a fee established for
133		-	the performance of a service pursuant to an arrangement in
	143	+	F. "comparable licensure requirements" means
	144	+	requirements that are comparable to or exceed the education,
	145	+	examination and experience requirements of Paragraph (1) of
	146	+	Subsection A of Section 61-28B-26 NMSA 1978, as determined by
	147	+	the board;
	148	+	[E.] G. "compilation" means a service provided to
	149	+	management, applying accounting and financial reporting
	150	+	expertise, in the presentation of financial statements and
	151	+	reports without undertaking to obtain or provide assurance that
	152	+	there are no material modifications that should be made to the
	153	+	financial statements or reports to be in accordance with the
	154	+	applicable financial reporting framework;
	155	+	[F.] H. "contingent fee" means a fee established
	156	+	for the performance of a service pursuant to an arrangement in
134	157		which no fee will be charged unless a specific finding or
135	158		result is attained or upon which the amount of the fee is
136		-	dependent upon a finding or result. "Contingent fee" does
137		-	~~not~~ mean a fee set by the court or a public authority on a
138		-	~~tax~~ matter;
139		-	I. "director" means the executive director of ~~the~~
140		-	board;
141		-	J. "firm" means a sole proprietorship,
	159	+	dependent upon a finding or result. "Contingent fee" does not
	160	+	mean a fee set by the court or a public authority on a tax
	161	+	matter;
	162	+	[G.] I. "director" means the executive director of
	163	+	the board;
	164	+	[H.] J. "firm" means a sole proprietorship,
142	165		professional corporation, partnership, limited liability
143		-	company, limited liability partnership or other legal
144		-	business entity that practices public accountancy;
145		-	K. "licensee" means a person, certified public
146		-	accountant, certified public accountant firm, registered
147		-	public accountant or registered public accountant firm
148		-	authorized to do business in New Mexico pursuant to the
149		-	provisions of the 1999 Public Accountancy Act or prior law;
150		-	L. "peer review" means a study, appraisal or
151		-	review of one or more aspects of the professional work of a
152		-	firm by a certified public accountant who is not affiliated
153		-	with the firm being reviewed; HJC/HCEDC/HB 296
154		-	Page 4
	166	+	company, limited liability partnership or other legal business
	167	+	entity that practices public accountancy;
	168	+	.229431.5
	169	+	- 3 - underscored material = new
	170	+	[bracketed material] = delete
155	171		1
156	172		2
157	173		3
158	174		4
159	175		5
160	176		6
161	177		7
162	178		8
163	179		9
164	180		10
165	181		11
166	182		12
167	183		13
168	184		14
169	185		15
170	186		16
171	187		17
172	188		18
173	189		19
174	190		20
175	191		21
176	192		22
177	193		23
178	194		24
179	195		25
180		-	M. "permit" means the annual authority granted to
181		-	practice as a certified public accountant firm or a
	196	+	[I.] K. "licensee" means a person, certified public
	197	+	accountant, certified public accountant firm, registered public
	198	+	accountant or registered public accountant firm authorized to
	199	+	do business in New Mexico pursuant to the provisions of the
	200	+	1999 Public Accountancy Act or prior law;
	201	+	[J.] L. "peer review" means a study, appraisal or
	202	+	review of one or more aspects of the professional work of a
	203	+	firm by a certified public accountant who is not affiliated
	204	+	with the firm being reviewed;
	205	+	[K.] M. "permit" means the annual authority granted
	206	+	to practice as a certified public accountant firm or a
182	207		registered public accountant firm;
183		-	N. "practice" means performing or offering to
184		-	perform public accountancy for a client or potential client
185		-	by a person who makes a representation to the public as being
186		-	a permit holder or registered firm;
187		-	O. "public accountancy" means the performance of
188		-	one or more kinds of services involving accounting or
189		-	auditing skills, including the issuance of reports on
190		-	financial statements, the performance of one or more kinds of
191		-	management, financial advisory or consulting services, the
192		-	preparation of tax returns or the furnishing of advice on tax
193		-	matters;
194		-	P. "registered public accountant" means a person
195		-	who is registered by the board to practice public accountancy
196		-	and use the designation; and
197		-	Q. "report" means a written communication issued
198		-	by an accountant or an accountant firm that:
199		-	(1) when used in reference to an audit,
200		-	review or examination service, expresses or disclaims an
201		-	opinion or a conclusion as to whether subject matter is
202		-	presented in accordance with specified criteria; and
203		-	(2) when used in reference to a compilation,
204		-	agreed-upon procedures service or other service that is not HJC/HCEDC/HB 296
205		-	Page 5
	208	+	[L.] N. "practice" means performing or offering to
	209	+	perform public accountancy for a client or potential client by
	210	+	a person who makes a representation to the public as being a
	211	+	permit holder or registered firm;
	212	+	[M.] O. "public accountancy" means the performance
	213	+	of one or more kinds of services involving accounting or
	214	+	auditing skills, including the issuance of reports on financial
	215	+	statements, the performance of one or more kinds of management,
	216	+	financial advisory or consulting services, the preparation of
	217	+	tax returns or the furnishing of advice on tax matters;
	218	+	[N.] P. "registered public accountant" means a
	219	+	person who is registered by the board to practice public
	220	+	accountancy and use the designation; and
	221	+	.229431.5
	222	+	- 4 - underscored material = new
	223	+	[bracketed material] = delete
206	224		1
207	225		2
208	226		3
209	227		4
210	228		5
211	229		6
212	230		7
213	231		8
214	232		9
215	233		10
216	234		11
217	235		12
218	236		13
219	237		14
220	238		15
221	239		16
222	240		17
223	241		18
224	242		19
225	243		20
226	244		21
227	245		22
228	246		23
229	247		24
230	248		25
231		-	an audit, review or examination service, includes a statement
232		-	or implication that the accountant or accountant firm that
233		-	issued the report has special knowledge or competence in
234		-	accounting or attest services such as by the use of names or
235		-	titles indicating that the person or firm is an accountant or
236		-	an accountant firm or by the contents of the report itself."
	249	+	[O.] Q. "report" means a written communication
	250	+	issued by an accountant or an accountant firm that:
	251	+	(1) when used in reference to an audit, review
	252	+	or examination service, expresses or disclaims an opinion or a
	253	+	conclusion as to whether subject matter is presented in
	254	+	accordance with specified criteria; and
	255	+	(2) when used in reference to a compilation,
	256	+	agreed-upon procedures service or other service that is not an
	257	+	audit, review or examination service, includes a statement or
	258	+	implication that the accountant or accountant firm that issued
	259	+	the report has special knowledge or competence in accounting or
	260	+	attest services such as by the use of names or titles
	261	+	indicating that the person or firm is an accountant or an
	262	+	accountant firm or by the contents of the report itself. [and
	263	+	P. "substantial equivalency" means a determination
	264	+	by the board that the education, examination and experience
	265	+	requirements for certification of another jurisdiction are
	266	+	comparable to or exceed the requirements of Paragraph (1) of
	267	+	Subsection A of Section 61-28B-26 NMSA 1978 ]"
237	268		SECTION 2. Section 61-28B-8 NMSA 1978 (being Laws 1999,
238	269		Chapter 179, Section 8, as amended) is amended to read:
239	270		"61-28B-8. QUALIFICATIONS FOR A CERTIFICATE AS A
240	271		CERTIFIED PUBLIC ACCOUNTANT.--
241	272		A. An applicant for a certificate shall complete
242	273		the application form provided by the board and demonstrate to
243		-	the board's satisfaction that the applicant:
244		-	(1) is of good moral character and lacks a
245		-	history of dishonest or felonious acts; and
246		-	(2) meets the education, accounting
247		-	experience and examination requirements of the board.
248		-	B. The board may refuse to grant a certificate on
249		-	the ground that the applicant failed to satisfy the
250		-	requirement of good moral character.
251		-	C. The education requirement for examination shall
252		-	be:
253		-	(1) a baccalaureate degree or its equivalent
254		-	from a college or university acceptable to the board plus
255		-	completion of an additional thirty semester hours of higher HJC/HCEDC/HB 296
256		-	Page 6
	274	+	.229431.5
	275	+	- 5 - underscored material = new
	276	+	[bracketed material] = delete
257	277		1
258	278		2
259	279		3
260	280		4
261	281		5
262	282		6
263	283		7
264	284		8
265	285		9
266	286		10
267	287		11
268	288		12
269	289		13
270	290		14
271	291		15
272	292		16
273	293		17
274	294		18
275	295		19
276	296		20
277	297		21
278	298		22
279	299		23
280	300		24
281	301		25
	302	+	the board's satisfaction that the applicant:
	303	+	(1) is of good moral character and lacks a
	304	+	history of dishonest or felonious acts; and
	305	+	(2) meets the education, accounting experience
	306	+	and examination requirements of the board.
	307	+	B. The board may refuse to grant a certificate on
	308	+	the ground that the applicant failed to satisfy the requirement
	309	+	of good moral character.
	310	+	C. The education requirement for examination shall
	311	+	be: [a baccalaureate degree or its equivalent conferred by a
	312	+	college or university acceptable to the board, with thirty
	313	+	semester hours in accounting or the equivalent as determined by
	314	+	the board. An applicant for a certificate shall have at least
	315	+	one hundred fifty semester hours of college education or its
	316	+	equivalent earned at a college or university acceptable to the
	317	+	board]
	318	+	(1) a baccalaureate degree or its equivalent
	319	+	from a college or university acceptable to the board plus
	320	+	completion of an additional thirty semester hours of higher
282	321		education in accounting or business;
283	322		(2) a baccalaureate degree from a college or
284	323		university acceptable to the board with a concentration in
285	324		accounting or business; or
286	325		(3) a master's degree from a college or
287	326		university acceptable to the board with a concentration in
288		-	accounting or business.
289		-	D. The education and accounting experience
290		-	requirement for a certificate shall be:
291		-	(1) a baccalaureate degree or its equivalent
292		-	from a college or university acceptable to the board plus
293		-	completion of an additional thirty semester hours of higher
294		-	education in accounting or business and evidence of at least
295		-	one year of accounting experience;
296		-	(2) a baccalaureate degree from a college or
297		-	university acceptable to the board with a concentration in
298		-	accounting or business and evidence of at least two years of
299		-	accounting experience; or
300		-	(3) a master's degree from a college or
301		-	university acceptable to the board with a concentration in
302		-	accounting or business and evidence of at least one year of
303		-	accounting experience.
304		-	E. The examination for certification shall be
305		-	offered continuously via a computer-based testing system at a
306		-	designated testing center and shall test an applicant's HJC/HCEDC/HB 296
307		-	Page 7
	327	+	.229431.5
	328	+	- 6 - underscored material = new
	329	+	[bracketed material] = delete
308	330		1
309	331		2
310	332		3
311	333		4
312	334		5
313	335		6
314	336		7
315	337		8
316	338		9
317	339		10
318	340		11
319	341		12
320	342		13
321	343		14
322	344		15
323	345		16
324	346		17
325	347		18
326	348		19
327	349		20
328	350		21
329	351		22
330	352		23
331	353		24
332	354		25
333		-	knowledge of the subjects of accounting and auditing and
334		-	other related subjects as prescribed by the board. The board
335		-	shall prescribe the method of applying for the examination
336		-	and the dissemination of scores, and it shall rely on the
337		-	American institute of certified public accountants for the
338		-	grading of the examination. The board may use all or any
339		-	part of the uniform certified public accountant examination
340		-	services of the national association of state boards of
341		-	accountancy to perform administrative services with respect
342		-	to the examination. The board or its designee shall report
343		-	all eligibility and score data to the national candidate
344		-	database, and it shall, to the extent possible, provide that
345		-	the passing scores are uniform with passing scores of other
346		-	states.
347		-	F. An applicant must pass all sections of the
348		-	examination to qualify for a certificate. A passing scaled
349		-	score for each section shall be seventy-five percent.
350		-	Sections may be taken individually and in any order. Credit
351		-	for any section passed shall be valid for thirty months from
352		-	the date the passing score is released to the applicant,
353		-	without having to attain a minimum score on any failed test
354		-	section and without regard to whether the applicant has taken
355		-	other test sections. An applicant must pass all four test
356		-	sections within a continuous thirty-month period, which
357		-	begins on the date that the first passing scores are released HJC/HCEDC/HB 296
358		-	Page 8
	355	+	accounting or business.
	356	+	D. The education and accounting experience
	357	+	requirement for a certificate shall be:
	358	+	(1) a baccalaureate degree or its equivalent
	359	+	from a college or university acceptable to the board plus
	360	+	completion of an additional thirty semester hours of higher
	361	+	education in accounting or business and evidence of at least
	362	+	one year of accounting experience;
	363	+	(2) a baccalaureate degree from a college or
	364	+	university acceptable to the board with a concentration in
	365	+	accounting or business and evidence of at least two years of
	366	+	accounting experience; or
	367	+	(3) a master's degree from a college or
	368	+	university acceptable to the board with a concentration in
	369	+	accounting or business and evidence of at least one year of
	370	+	accounting experience .
	371	+	[D.] E. The examination for certification shall be
	372	+	offered continuously via a computer-based testing system at a
	373	+	designated testing center and shall test an applicant's
	374	+	knowledge of the subjects of accounting and auditing and other
	375	+	related subjects as prescribed by the board. The board shall
	376	+	prescribe the method of applying for the examination and the
	377	+	dissemination of scores, and it shall rely on the American
	378	+	institute of certified public accountants for the grading of
	379	+	the examination. The board may use all or any part of the
	380	+	.229431.5
	381	+	- 7 - underscored material = new
	382	+	[bracketed material] = delete
359	383		1
360	384		2
361	385		3
362	386		4
363	387		5
364	388		6
365	389		7
366	390		8
367	391		9
368	392		10
369	393		11
370	394		12
371	395		13
372	396		14
373	397		15
374	398		16
375	399		17
376	400		18
377	401		19
378	402		20
379	403		21
380	404		22
381	405		23
382	406		24
383	407		25
384		-	to the applicant. If all four test sections are not passed
385		-	within the continuous thirty-month period, credit for any
386		-	test section passed outside the thirty-month period will
387		-	expire, and that test section must be retaken.
388		-	G. An applicant shall be given credit for
	408	+	uniform certified public accountant examination services of the
	409	+	national association of state boards of accountancy to perform
	410	+	administrative services with respect to the examination. The
	411	+	board or its designee shall report all eligibility and score
	412	+	data to the national candidate database, and it shall, to the
	413	+	extent possible, provide that the passing scores are uniform
	414	+	with passing scores of other states.
	415	+	[E.] F. An applicant must pass all sections of the
	416	+	examination to qualify for a certificate. A passing scaled
	417	+	score for each section shall be seventy-five percent . Sections
	418	+	may be taken individually and in any order. Credit for any
	419	+	section passed shall be valid for [eighteen ] thirty months from
	420	+	the date the passing score is released to the applicant,
	421	+	without having to attain a minimum score on any failed test
	422	+	section and without regard to whether the applicant has taken
	423	+	other test sections. An applicant must pass all four test
	424	+	sections within a continuous [eighteen-month ] thirty-month
	425	+	period, which begins on the date that the first passing scores
	426	+	are released to the applicant. If all four test sections are
	427	+	not passed within the continuous [eighteen-month ] thirty-month
	428	+	period, credit for any test section passed outside the
	429	+	[eighteen-month] thirty-month period will expire, and that test
	430	+	section must be retaken.
	431	+	[F.] G. An applicant shall be given credit for
389	432		examination sections passed in another state if such credit
390		-	would have been given in New Mexico.
391		-	H. The board may waive or defer requirements of
392		-	this section regarding the circumstances in which sections of
393		-	the examination must be passed, upon a showing that, by
394		-	reason of circumstances beyond the applicant's control, the
395		-	applicant was unable to meet the requirement."
396		-	SECTION 3. Section 61-28B-9 NMSA 1978 (being Laws 1999,
397		-	Chapter 179, Section 9, as amended) is amended to read:
398		-	"61-28B-9. ISSUANCE AND RENEWAL OF CERTIFICATE--
399		-	MAINTENANCE OF COMPETENCY--NONRESIDENT MAINTENANCE OF
400		-	COMPETENCY REQUIREMENTS.--
401		-	A. The board shall grant or renew a certificate
402		-	upon application and demonstration that the applicant's
403		-	qualifications are in accordance with the 1999 Public
404		-	Accountancy Act.
405		-	B. The board may establish by rule for the
406		-	issuance of annual certificates and may prescribe the
407		-	expiration date of certificates. Failure to pay the renewal
408		-	fee shall be cause for the board to withhold renewal of a HJC/HCEDC/HB 296
409		-	Page 9
	433	+	.229431.5
	434	+	- 8 - underscored material = new
	435	+	[bracketed material] = delete
410	436		1
411	437		2
412	438		3
413	439		4
414	440		5
415	441		6
416	442		7
417	443		8
418	444		9
419	445		10
420	446		11
421	447		12
422	448		13
423	449		14
424	450		15
425	451		16
426	452		17
427	453		18
428	454		19
429	455		20
430	456		21
431	457		22
432	458		23
433	459		24
434	460		25
435		-	certificate without prior hearing pursuant to the provisions
436		-	of the Uniform Licensing Act. If the renewal fee and
437		-	delinquency fee are not paid within ninety days after the
438		-	expiration date of the license, the certificate shall be
439		-	subject to cancellation. A certificate holder whose
440		-	certificate has been canceled for failure to pay the annual
441		-	renewal fee may secure reinstatement of the certificate only
442		-	upon application and payment of the renewal fee and
443		-	reinstatement fee and upon approval by the board.
444		-	C. The board shall grant or deny an application
445		-	for certification no later than one hundred twenty days after
446		-	the complete application is filed.
447		-	D. If an applicant appeals the decision of the
448		-	board to deny a certificate, the board may issue a
449		-	provisional certificate for no longer than ninety days while
450		-	the board reconsiders its decision.
451		-	E. To renew a certificate, a certificate holder
452		-	shall provide satisfactory proof to the board of continuing
453		-	professional education that is designed to maintain
454		-	competency. Continuing professional education courses shall
455		-	comply with board rules. The board may create an exception
456		-	to the requirement to maintain continuing professional
457		-	education for certificate holders who do not provide services
458		-	to the public. A certificate holder granted such an
459		-	exception must place the word "inactive" or "retired" HJC/HCEDC/HB 296
460		-	Page 10
	461	+	would have been given in New Mexico.
	462	+	[G.] H. The board may waive or defer requirements
	463	+	of this section regarding the circumstances in which sections
	464	+	of the examination must be passed, upon a showing that, by
	465	+	reason of circumstances beyond the applicant's control, the
	466	+	applicant was unable to meet the requirement.
	467	+	[H. An applicant for initial issuance of a
	468	+	certified public accountant certificate shall show that the
	469	+	applicant has had at least one year of experience. This
	470	+	experience shall include providing service or advice involving
	471	+	the use of accounting, attest, management advisory, financial
	472	+	advisory, tax or consulting skills as verified by a certified
	473	+	public accountant who meets requirements prescribed by the
	474	+	board. The experience is acceptable if it was gained through
	475	+	employment in government, industry, academia or public
	476	+	practice.]"
	477	+	SECTION 3. Section 61-28B-9 NMSA 1978 (being Laws 1999,
	478	+	Chapter 179, Section 9, as amended) is amended to read:
	479	+	"61-28B-9. ISSUANCE AND RENEWAL OF CERTIFICATE--
	480	+	MAINTENANCE OF COMPETENCY--NONRESIDENT MAINTENANCE OF
	481	+	COMPETENCY REQUIREMENTS.--
	482	+	A. The board shall grant or renew a certificate
	483	+	upon application and demonstration that the applicant's
	484	+	qualifications are in accordance with the 1999 Public
	485	+	Accountancy Act [or that they are eligible under the
	486	+	.229431.5
	487	+	- 9 - underscored material = new
	488	+	[bracketed material] = delete
461	489		1
462	490		2
463	491		3
464	492		4
465	493		5
466	494		6
467	495		7
468	496		8
469	497		9
470	498		10
471	499		11
472	500		12
473	501		13
474	502		14
475	503		15
476	504		16
477	505		17
478	506		18
479	507		19
480	508		20
481	509		21
482	510		22
483	511		23
484	512		24
485	513		25
486		-	adjacent to the certificate holder's certified public
487		-	accountant title or registered public accountant title on a
488		-	business card, letterhead or other document or device, except
489		-	for a board-issued certificate.
490		-	F. A nonresident certificate holder seeking to
491		-	renew a certificate shall be determined to have met the
492		-	continuing professional education requirement in this state
493		-	if the nonresident has met the continuing professional
494		-	education requirement in the state where the nonresident's
495		-	principal place of business is located; provided that:
496		-	(1) the nonresident signs a statement on the
497		-	renewal application that the nonresident has met the
498		-	continuing professional education requirement in the state
499		-	where the nonresident's principal place of business is
500		-	located; and
501		-	(2) the state where the nonresident's
502		-	principal place of business is located requires continuing
503		-	professional education.
504		-	G. An applicant for initial issuance or renewal of
505		-	a certificate pursuant to this section shall list all foreign
506		-	and domestic jurisdictions in which the applicant has applied
507		-	for or holds a designation to practice public accountancy.
508		-	The applicant shall also list any past denial, revocation or
509		-	suspension of a certificate, license or permit. An applicant
510		-	or certificate holder shall notify the board in writing, HJC/HCEDC/HB 296
511		-	Page 11
	514	+	substantial equivalency standard provided in that act ].
	515	+	B. The board may establish by rule for the issuance
	516	+	of annual certificates and may prescribe the expiration date of
	517	+	certificates. Failure to pay the renewal fee shall be cause
	518	+	for the board to withhold renewal of a certificate without
	519	+	prior hearing pursuant to the provisions of the Uniform
	520	+	Licensing Act. If the renewal fee and delinquency fee are not
	521	+	paid within ninety days after the expiration date of the
	522	+	license, the certificate shall be subject to cancellation. A
	523	+	certificate holder whose certificate has been canceled for
	524	+	failure to pay the annual renewal fee may secure reinstatement
	525	+	of the certificate only upon application and payment of the
	526	+	renewal fee and reinstatement fee and upon approval by the
	527	+	board.
	528	+	C. The board shall grant or deny an application for
	529	+	certification no later than one hundred twenty days after the
	530	+	complete application is filed.
	531	+	D. If an applicant appeals the decision of the
	532	+	board to deny a certificate, the board may issue a provisional
	533	+	certificate for no longer than ninety days while the board
	534	+	reconsiders its decision.
	535	+	E. To renew a certificate, a certificate holder
	536	+	shall provide satisfactory proof to the board of continuing
	537	+	professional education that is designed to maintain competency.
	538	+	Continuing professional education courses shall comply with
	539	+	.229431.5
	540	+	- 10 - underscored material = new
	541	+	[bracketed material] = delete
512	542		1
513	543		2
514	544		3
515	545		4
516	546		5
517	547		6
518	548		7
519	549		8
520	550		9
521	551		10
522	552		11
523	553		12
524	554		13
525	555		14
526	556		15
527	557		16
528	558		17
529	559		18
530	560		19
531	561		20
532	562		21
533	563		22
534	564		23
535	565		24
536	566		25
537		-	within thirty days of the occurrence of any issuance, denial,
538		-	revocation or suspension of a designation or commencement of
539		-	a disciplinary or enforcement action by any jurisdiction."
540		-	SECTION 4. Section 61-28B-11 NMSA 1978 (being Laws
541		-	1999, Chapter 179, Section 11, as amended) is amended to
542		-	read:
543		-	"61-28B-11. CERTIFICATES ISSUED TO HOLDERS OF A
544		-	CERTIFICATE, LICENSE OR PERMIT ISSUED BY ANOTHER STATE--
545		-	EXCEPTION.--
546		-	A. The board may issue a certificate to a holder
547		-	of a certificate, license or permit issued by another state
548		-	upon a showing that the applicant:
549		-	(1) passed the examination required for
550		-	issuance of the applicant's certificate with scores that
551		-	would have been passing grades at the time in New Mexico;
552		-	(2) passed the examination upon which the
553		-	applicant's out-of-state certificate was based and has met
554		-	the accounting experience requirements within the ten years
555		-	immediately preceding the application; and
556		-	(3) if the applicant's certificate, license
557		-	or permit was issued more than four years prior to
558		-	application, has fulfilled the board's requirements of
559		-	continuing professional education.
560		-	B. An individual shall be granted the privilege to
561		-	perform, or offer to perform, services without notice to the HJC/HCEDC/HB 296
562		-	Page 12
	567	+	board rules. The board may create an exception to the
	568	+	requirement to maintain continuing professional education for
	569	+	certificate holders who do not provide services to the public.
	570	+	A certificate holder granted such an exception must place the
	571	+	word "inactive" or "retired" adjacent to the certificate
	572	+	holder's certified public accountant title or registered public
	573	+	accountant title on a business card, letterhead or other
	574	+	document or device, except for a board-issued certificate.
	575	+	F. A nonresident certificate holder seeking to
	576	+	renew a certificate shall be determined to have met the
	577	+	continuing professional education requirement in this state if
	578	+	the nonresident has met the continuing professional education
	579	+	requirement in the state where the nonresident's principal
	580	+	place of business is located; provided that:
	581	+	(1) the nonresident signs a statement on the
	582	+	renewal application that the nonresident has met the continuing
	583	+	professional education requirement in the state where the
	584	+	nonresident's principal place of business is located; and
	585	+	(2) the state where the nonresident's
	586	+	principal place of business is located requires continuing
	587	+	professional education.
	588	+	G. An applicant for initial issuance or renewal of
	589	+	a certificate pursuant to this section shall list all foreign
	590	+	and domestic jurisdictions in which the applicant has applied
	591	+	for or holds a designation to practice public accountancy. The
	592	+	.229431.5
	593	+	- 11 - underscored material = new
	594	+	[bracketed material] = delete
563	595		1
564	596		2
565	597		3
566	598		4
567	599		5
568	600		6
569	601		7
570	602		8
571	603		9
572	604		10
573	605		11
574	606		12
575	607		13
576	608		14
577	609		15
578	610		16
579	611		17
580	612		18
581	613		19
582	614		20
583	615		21
584	616		22
585	617		23
586	618		24
587	619		25
588		-	board or being certified, if the individual holds a valid
589		-	license or permit in good standing as a certified public
590		-	accountant or its equivalent issued by another jurisdiction
591		-	in the United States; provided that the licensee, at the time
592		-	of licensure, was required to provide evidence of having
593		-	successfully completed a qualifying exam in accordance with
594		-	the requirements of the licensing jurisdiction.
595		-	C. The board may issue a certificate to a holder
596		-	of a foreign designation with comparable licensure
597		-	requirements as determined by the board to be comparable to
598		-	or to exceed the education, examination and accounting
599		-	experience requirements of Paragraph (1) of Subsection A of
600		-	Section 61-28B-26 NMSA 1978; provided that:
601		-	(1) the foreign authority that granted the
602		-	designation makes similar provision to allow a person who
603		-	holds a valid certificate issued by New Mexico to obtain such
604		-	foreign authority's comparable designation;
605		-	(2) the foreign designation:
606		-	(a) was duly issued by a foreign
607		-	authority that regulates the practice of public accountancy
608		-	and the foreign designation has not expired or been revoked
609		-	or suspended;
610		-	(b) entitles the holder to issue
611		-	reports upon financial statements; and
612		-	(c) was issued upon the basis of HJC/HCEDC/HB 296
613		-	Page 13
	620	+	applicant shall also list any past denial, revocation or
	621	+	suspension of a certificate, license or permit. An applicant
	622	+	or certificate holder shall notify the board in writing, within
	623	+	thirty days of the occurrence of any issuance, denial,
	624	+	revocation or suspension of a designation or commencement of a
	625	+	disciplinary or enforcement action by any jurisdiction."
	626	+	SECTION 4. Section 61-28B-11 NMSA 1978 (being Laws 1999,
	627	+	Chapter 179, Section 11, as amended) is amended to read:
	628	+	"61-28B-11. CERTIFICATES ISSUED TO HOLDERS OF A
	629	+	CERTIFICATE, LICENSE OR PERMIT ISSUED BY ANOTHER STATE--
	630	+	EXCEPTION.--
	631	+	A. The board may issue a certificate to a holder of
	632	+	a certificate, license or permit issued by another state upon a
	633	+	showing that the applicant:
	634	+	(1) passed the examination required for
	635	+	issuance of the applicant's certificate with [grades ] scores
	636	+	that would have been passing grades at the time in New Mexico;
	637	+	(2) passed the examination upon which the
	638	+	applicant's out-of-state certificate was based and has [two
	639	+	years of] met the accounting experience [acceptable to the
	640	+	board or meets equivalent requirements prescribed by board
	641	+	rule] requirements within the ten years immediately preceding
	642	+	the application; and
	643	+	(3) if the applicant's certificate, license or
	644	+	permit was issued more than four years prior to application,
	645	+	.229431.5
	646	+	- 12 - underscored material = new
	647	+	[bracketed material] = delete
614	648		1
615	649		2
616	650		3
617	651		4
618	652		5
619	653		6
620	654		7
621	655		8
622	656		9
623	657		10
624	658		11
625	659		12
626	660		13
627	661		14
628	662		15
629	663		16
630	664		17
631	665		18
632	666		19
633	667		20
634	668		21
635	669		22
636	670		23
637	671		24
638	672		25
639		-	educational, examination and accounting experience
640		-	requirements established by the foreign authority or by law;
641		-	and
642		-	(3) the applicant:
643		-	(a) received the designation based on
644		-	comparable licensure requirements at the time the foreign
645		-	designation was granted;
646		-	(b) completed an accounting experience
647		-	requirement in the jurisdiction that granted the foreign
648		-	designation that has comparable licensure requirements or has
649		-	completed four years of professional accounting experience in
650		-	New Mexico; and
651		-	(c) passed a uniform qualifying
652		-	examination on national standards and an examination on the
653		-	laws, rules and code of ethical conduct in effect in New
654		-	Mexico that is acceptable to the board.
655		-	D. An applicant for initial issuance or renewal of
656		-	a certificate pursuant to this section shall list all foreign
657		-	and domestic jurisdictions in which the applicant has applied
658		-	for or holds a designation to practice public accountancy.
659		-	The applicant shall also list any past denial, revocation or
660		-	suspension of a certificate, license or permit. An applicant
661		-	or certificate holder shall notify the board in writing,
662		-	within thirty days of the occurrence of any issuance, denial,
663		-	revocation or suspension of a designation or commencement of HJC/HCEDC/HB 296
664		-	Page 14
	673	+	has fulfilled the board's requirements of continuing
	674	+	professional education.
	675	+	[B. A person licensed by another state who wishes
	676	+	to establish a principal place of business in New Mexico shall
	677	+	apply to the board for a certificate prior to establishing the
	678	+	business. The board may issue a certificate to the person if
	679	+	the person provides proof from a board-approved national
	680	+	qualification appraisal service that the person's certified
	681	+	public accountant qualifications are substantially equivalent
	682	+	to the certified public accountant certification requirements
	683	+	of Paragraph (1) of Subsection A of Section 61-28B-26 NMSA
	684	+	1978.]
	685	+	B. An individual shall be granted the privilege to
	686	+	perform, or offer to perform services, without notice to the
	687	+	board or being certified, if the individual holds a valid
	688	+	license or permit in good standing as a certified public
	689	+	accountant or its equivalent issued by another jurisdiction in
	690	+	the United States; provided that the licensee, at the time of
	691	+	licensure, was required to provide evidence of having
	692	+	successfully completed a qualifying exam in accordance with the
	693	+	requirements of the licensing jurisdiction.
	694	+	C. The board may issue a certificate to a holder of
	695	+	a [substantially equivalent ] foreign designation with
	696	+	comparable licensure requirements as determined by the board to
	697	+	be comparable to or to exceed the education, examination and
	698	+	.229431.5
	699	+	- 13 - underscored material = new
	700	+	[bracketed material] = delete
665	701		1
666	702		2
667	703		3
668	704		4
669	705		5
670	706		6
671	707		7
672	708		8
673	709		9
674	710		10
675	711		11
676	712		12
677	713		13
678	714		14
679	715		15
680	716		16
681	717		17
682	718		18
683	719		19
684	720		20
685	721		21
686	722		22
687	723		23
688	724		24
689	725		25
690		-	a disciplinary or enforcement action by any jurisdiction.
691		-	E. The board has the sole authority to interpret
692		-	the application of the provisions of this section."
693		-	SECTION 5. Section 61-28B-13 NMSA 1978 (being Laws
694		-	1999, Chapter 179, Section 13, as amended) is amended to
695		-	read:
696		-	"61-28B-13. FIRM PERMITS TO PRACTICE, ATTEST
697		-	EXPERIENCE, PEER REVIEW.--
698		-	A. The board may grant or renew a permit to
699		-	practice as a certified public accountant firm to an
700		-	applicant that demonstrates its qualifications in accordance
701		-	with this section.
702		-	B. A permit issued pursuant to this section shall
703		-	be required for the following:
704		-	(1) a firm with an office in New Mexico
705		-	performing attest services as defined by the 1999 Public
706		-	Accountancy Act;
707		-	(2) a firm with an office in New Mexico that
708		-	uses the title "CPA" or "CPA firm"; or
709		-	(3) a firm that does not have an office in
710		-	New Mexico but offers or renders attest services for a client
711		-	in New Mexico, except as provided in Subsection C of this
712		-	section.
713		-	C. A firm that does not have an office in New
714		-	Mexico may offer or render attest services for a client in HJC/HCEDC/HB 296
715		-	Page 15
	726	+	experience requirements of Paragraph (1) of Subsection A of
	727	+	Section 61-28B-26 NMSA 1978 ; provided that:
	728	+	(1) the foreign authority that granted the
	729	+	designation makes similar provision to allow a person who holds
	730	+	a valid certificate issued by New Mexico to obtain such foreign
	731	+	authority's comparable designation;
	732	+	(2) the foreign designation:
	733	+	(a) was duly issued by a foreign
	734	+	authority that regulates the practice of public accountancy and
	735	+	the foreign designation has not expired or been revoked or
	736	+	suspended;
	737	+	(b) entitles the holder to issue reports
	738	+	upon financial statements; and
	739	+	(c) was issued upon the basis of
	740	+	educational, examination and accounting experience requirements
	741	+	established by the foreign authority or by law; and
	742	+	(3) the applicant:
	743	+	(a) received the designation based on
	744	+	[educational and examination standards substantially equivalent
	745	+	to those in effect in New Mexico ] comparable licensure
	746	+	requirements at the time the foreign designation was granted;
	747	+	(b) completed an accounting experience
	748	+	requirement in the jurisdiction that granted the foreign
	749	+	designation that [is substantially equivalent to the
	750	+	requirement provided for in the 1999 Public Accountancy Act ]
	751	+	.229431.5
	752	+	- 14 - underscored material = new
	753	+	[bracketed material] = delete
716	754		1
717	755		2
718	756		3
719	757		4
720	758		5
721	759		6
722	760		7
723	761		8
724	762		9
725	763		10
726	764		11
727	765		12
728	766		13
729	767		14
730	768		15
731	769		16
732	770		17
733	771		18
734	772		19
735	773		20
736	774		21
737	775		22
738	776		23
739	777		24
740	778		25
741		-	New Mexico and may use the title "CPA" or "CPA firm" without
742		-	a permit issued pursuant to this section only if:
743		-	(1) the firm offers or renders the services
744		-	through an individual that:
745		-	(a) holds a valid license or permit in
746		-	good standing as a certified public accountant or equivalent
747		-	issued by another jurisdiction in the United States if, at
748		-	the time of licensure, the individual showed evidence of
749		-	having successfully completed a qualifying exam in accordance
750		-	with the licensing jurisdiction; and
751		-	(b) consents to the disciplinary
752		-	authority of the board;
753		-	(2) the firm meets the requirements of
754		-	Paragraph (1) of Subsection H of this section; and
755		-	(3) the firm meets the requirements of
756		-	Subsection L of this section.
757		-	D. A firm not subject to the requirements of
758		-	Subsection B or C of this section may perform other nonattest
759		-	professional services while using the title "CPA" or "CPA
760		-	firm" in New Mexico without a permit issued pursuant to this
761		-	section only if:
762		-	(1) the firm performs services through a
763		-	person with practice privileges pursuant to Section 61-28B-26
764		-	NMSA 1978; and
765		-	(2) the firm can lawfully perform services HJC/HCEDC/HB 296
766		-	Page 16
	779	+	has comparable licensure requirements or has completed four
	780	+	years of professional accounting experience in New Mexico [or
	781	+	meets equivalent requirements prescribed by the board within
	782	+	the ten years immediately preceding the application ]; and
	783	+	(c) passed a uniform qualifying
	784	+	examination on national standards and an examination on the
	785	+	laws, rules and code of ethical conduct in effect in New Mexico
	786	+	that is acceptable to the board.
	787	+	D. An applicant for initial issuance or renewal of
	788	+	a certificate pursuant to this section shall list all foreign
	789	+	and domestic jurisdictions in which the applicant has applied
	790	+	for or holds a designation to practice public accountancy. The
	791	+	applicant shall also list any past denial, revocation or
	792	+	suspension of a certificate, license or permit. An applicant
	793	+	or certificate holder shall notify the board in writing, within
	794	+	thirty days of the occurrence of any issuance, denial,
	795	+	revocation or suspension of a designation or commencement of a
	796	+	disciplinary or enforcement action by any jurisdiction.
	797	+	E. The board has the sole authority to interpret
	798	+	the application of the provisions of this section."
	799	+	SECTION 5. Section 61-28B-13 NMSA 1978 (being Laws 1999,
	800	+	Chapter 179, Section 13, as amended) is amended to read:
	801	+	"61-28B-13. FIRM PERMITS TO PRACTICE, ATTEST EXPERIENCE,
	802	+	PEER REVIEW.--
	803	+	A. The board may grant or renew a permit to
	804	+	.229431.5
	805	+	- 15 - underscored material = new
	806	+	[bracketed material] = delete
767	807		1
768	808		2
769	809		3
770	810		4
771	811		5
772	812		6
773	813		7
774	814		8
775	815		9
776	816		10
777	817		11
778	818		12
779	819		13
780	820		14
781	821		15
782	822		16
783	823		17
784	824		18
785	825		19
786	826		20
787	827		21
788	828		22
789	829		23
790	830		24
791	831		25
792		-	in the state that is the firm's principal place of business.
793		-	E. Permits shall be issued and renewed for periods
794		-	of not more than two years, expiring on June 30 of the year
795		-	of expiration. Failure to pay the renewal fee shall be cause
796		-	for the board to withhold renewal of a permit without prior
797		-	hearing pursuant to the provisions of the Uniform Licensing
798		-	Act. If the renewal fee and delinquency fee are not paid
799		-	within ninety days after the expiration of the permit, the
800		-	permit shall be subject to cancellation. A firm whose permit
801		-	has been canceled for failure to pay the annual renewal fee
802		-	may secure reinstatement of the permit upon application and
803		-	payment of the renewal fee and upon approval by the board.
804		-	F. The board shall grant or deny an application
805		-	for a permit no later than ninety days after the complete
806		-	application is filed.
807		-	G. If an applicant appeals the decision of the
808		-	board to deny a permit, the board may issue a provisional
809		-	permit for no longer than ninety days while the board
810		-	reconsiders its decision.
811		-	H. An applicant for initial issuance or renewal of
812		-	a permit shall demonstrate that:
813		-	(1) a simple majority of the ownership of
814		-	the firm, in terms of financial interests, profits, losses,
815		-	dividends, distributions, options, redemptions and voting
816		-	rights of all partners, officers, shareholders, members or HJC/HCEDC/HB 296
817		-	Page 17
	832	+	practice as a certified public accountant firm to an applicant
	833	+	that demonstrates its qualifications in accordance with this
	834	+	section.
	835	+	B. A permit issued pursuant to this section shall
	836	+	be required for the following:
	837	+	(1) a firm with an office in New Mexico
	838	+	performing attest services as defined by the 1999 Public
	839	+	Accountancy Act;
	840	+	(2) a firm with an office in New Mexico that
	841	+	uses the title "CPA" or "CPA firm"; or
	842	+	(3) a firm that does not have an office in New
	843	+	Mexico but offers or renders attest services for a client in
	844	+	New Mexico, except as provided in Subsection C of this section.
	845	+	C. A firm that does not have an office in New
	846	+	Mexico may offer or render attest services for a client in New
	847	+	Mexico and may use the title "CPA" or "CPA firm" without a
	848	+	permit issued pursuant to this section only if:
	849	+	(1) the firm offers or renders the services
	850	+	through [a person with practice privileges under Section
	851	+	61-28B-26 NMSA 1978; provided that the firm can lawfully
	852	+	perform the services in the state where the person's primary
	853	+	place of business is located ] an individual that:
	854	+	(a) holds a valid license or permit in
	855	+	good standing as a certified public accountant or equivalent
	856	+	issued by another jurisdiction in the United States if, at the
	857	+	.229431.5
	858	+	- 16 - underscored material = new
	859	+	[bracketed material] = delete
818	860		1
819	861		2
820	862		3
821	863		4
822	864		5
823	865		6
824	866		7
825	867		8
826	868		9
827	869		10
828	870		11
829	871		12
830	872		13
831	873		14
832	874		15
833	875		16
834	876		17
835	877		18
836	878		19
837	879		20
838	880		21
839	881		22
840	882		23
841	883		24
842	884		25
843		-	managers, belongs to holders of a certificate who are
844		-	licensed in some state. A partner, officer, shareholder,
845		-	member or manager, whose principal place of business is in
846		-	New Mexico, and who performs professional services in New
847		-	Mexico, must hold a valid certificate. The firm and all
848		-	owners must comply with the 1999 Public Accountancy Act. A
	885	+	time of licensure, the individual showed evidence of having
	886	+	successfully completed a qualifying exam in accordance with the
	887	+	licensing jurisdiction; and
	888	+	(b) consents to the disciplinary
	889	+	authority of the board ;
	890	+	(2) the firm meets the requirements of
	891	+	Paragraph (1) of Subsection H of this section; and
	892	+	(3) the firm meets the requirements of
	893	+	Subsection L of this section.
	894	+	D. A firm not subject to the requirements of
	895	+	Subsection B or C of this section may perform other nonattest
	896	+	professional services while using the title "CPA" or "CPA firm"
	897	+	in New Mexico without a permit issued pursuant to this section
	898	+	only if:
	899	+	(1) the firm performs services through a
849	900		person with practice privileges pursuant to Section 61-28B-26
850		-	NMSA 1978 who performs services for which a permit is
851		-	required pursuant to this section shall not be required to
852		-	obtain a certificate from New Mexico pursuant to Section
853		-	61-28B-9 NMSA 1978. A firm may include owners who are not
854		-	certificate holders; provided that:
855		-	(a) the firm designates a New Mexico
856		-	certificate holder, or in the case of a firm that must have a
857		-	permit, a licensee of another state who meets the
858		-	requirements of Subsection A of Section 61-28B-26 NMSA 1978,
859		-	who is responsible for the proper registration of the firm
860		-	and identifies that person to the board;
861		-	(b) all owners who are not certificate
862		-	holders are active participants in the certified public
863		-	accountant firm or registered public accountant firm or
864		-	affiliated entities; and
865		-	(c) the firm complies with the 1999
866		-	Public Accountancy Act; and
867		-	(2) a certificate holder, or a person HJC/HCEDC/HB 296
868		-	Page 18
	901	+	NMSA 1978; and
	902	+	(2) the firm can lawfully perform services in
	903	+	the state that is the firm's principal place of business.
	904	+	E. Permits shall be issued and renewed for periods
	905	+	of not more than two years, expiring on June 30 of the year of
	906	+	expiration. Failure to pay the renewal fee shall be cause for
	907	+	the board to withhold renewal of a permit without prior hearing
	908	+	pursuant to the provisions of the Uniform Licensing Act. If
	909	+	the renewal fee and delinquency fee are not paid within ninety
	910	+	.229431.5
	911	+	- 17 - underscored material = new
	912	+	[bracketed material] = delete
869	913		1
870	914		2
871	915		3
872	916		4
873	917		5
874	918		6
875	919		7
876	920		8
877	921		9
878	922		10
879	923		11
880	924		12
881	925		13
882	926		14
883	927		15
884	928		16
885	929		17
886	930		18
887	931		19
888	932		20
889	933		21
890	934		22
891	935		23
892	936		24
893	937		25
894		-	qualifying for practice privileges pursuant to Section
895		-	61-28B-26 NMSA 1978, who is responsible for supervising
896		-	attest services or signs or authorizes someone to sign the
897		-	accountant's report on behalf of the firm meets the
898		-	accounting experience requirements set out in the
899		-	professional standards for such services.
900		-	I. An applicant for initial issuance or renewal of
901		-	a permit shall be required to register each office of the
902		-	firm within New Mexico with the board and to show that all
903		-	attest services rendered in this state are under the charge
904		-	of a person holding a valid certificate issued pursuant to
905		-	the 1999 Public Accountancy Act or the corresponding
906		-	provision of prior law or by some other state.
907		-	J. An applicant for initial issuance or renewal of
908		-	a permit shall list all foreign and domestic jurisdictions in
909		-	which it has applied for or holds permits as a certified
910		-	public accountant firm and list any past denial, revocation
911		-	or suspension of a permit by any jurisdiction. Each permit
912		-	holder or applicant shall notify the board in writing, within
913		-	thirty days of the occurrence of a change in the identities
914		-	of partners, officers, shareholders, members or managers
915		-	whose principal place of business is in this state, a change
916		-	in the number or location of offices within this state, a
917		-	change in the identity of the persons in charge of such
918		-	offices and any issuance, denial, revocation or suspension of HJC/HCEDC/HB 296
919		-	Page 19
	938	+	days after the expiration of the permit, the permit shall be
	939	+	subject to cancellation. A firm whose permit has been canceled
	940	+	for failure to pay the annual renewal fee may secure
	941	+	reinstatement of the permit upon application and payment of the
	942	+	renewal fee and upon approval by the board.
	943	+	F. The board shall grant or deny an application for
	944	+	a permit no later than ninety days after the complete
	945	+	application is filed.
	946	+	G. If an applicant appeals the decision of the
	947	+	board to deny a permit, the board may issue a provisional
	948	+	permit for no longer than ninety days while the board
	949	+	reconsiders its decision.
	950	+	H. An applicant for initial issuance or renewal of
	951	+	a permit shall demonstrate that:
	952	+	(1) a simple majority of the ownership of the
	953	+	firm, in terms of financial interests, profits, losses,
	954	+	dividends, distributions, options, redemptions and voting
	955	+	rights of all partners, officers, shareholders, members or
	956	+	managers, belongs to holders of a certificate who are licensed
	957	+	in some state. A partner, officer, shareholder, member or
	958	+	manager, whose principal place of business is in New Mexico,
	959	+	and who performs professional services in New Mexico, must hold
	960	+	a valid certificate. The firm and all owners must comply with
	961	+	the 1999 Public Accountancy Act. A person with practice
	962	+	privileges pursuant to Section 61-28B-26 NMSA 1978 who performs
	963	+	.229431.5
	964	+	- 18 - underscored material = new
	965	+	[bracketed material] = delete
920	966		1
921	967		2
922	968		3
923	969		4
924	970		5
925	971		6
926	972		7
927	973		8
928	974		9
929	975		10
930	976		11
931	977		12
932	978		13
933	979		14
934	980		15
935	981		16
936	982		17
937	983		18
938	984		19
939	985		20
940	986		21
941	987		22
942	988		23
943	989		24
944	990		25
945		-	a permit by another jurisdiction.
946		-	K. A firm that falls out of compliance with the
947		-	provisions of the 1999 Public Accountancy Act due to changes
948		-	in firm ownership or personnel shall take corrective action
949		-	to bring the firm back into compliance as quickly as
950		-	possible. The board may grant a six-month period for a firm
951		-	to take the corrective action. Failure to bring the firm
952		-	back into compliance within six months shall result in the
953		-	suspension or revocation of the firm permit.
954		-	L. As a condition to permit renewal, the board
955		-	shall require the applicant to undergo a peer review
956		-	conducted in accordance with board rules. The review shall
957		-	include a verification that a person in the firm, or a person
	991	+	services for which a permit is required pursuant to this
	992	+	section shall not be required to obtain a certificate from New
	993	+	Mexico pursuant to Section 61-28B-9 NMSA 1978. A firm may
	994	+	include owners who are not certificate holders; provided that:
	995	+	(a) the firm designates a New Mexico
	996	+	certificate holder, or in the case of a firm that must have a
	997	+	permit, a licensee of another state who meets the requirements
	998	+	of Subsection A of Section 61-28B-26 NMSA 1978, who is
	999	+	responsible for the proper registration of the firm and
	1000	+	identifies that person to the board;
	1001	+	(b) all owners who are not certificate
	1002	+	holders are active participants in the certified public
	1003	+	accountant firm or registered public accountant firm or
	1004	+	affiliated entities; and
	1005	+	(c) the firm complies with the 1999
	1006	+	Public Accountancy Act; and
	1007	+	(2) a certificate holder, or a person
958	1008		qualifying for practice privileges pursuant to Section
959		-	61-28B-26 NMSA 1978, who is responsible for supervising
960		-	attest services and signs or authorizes someone to sign the
961		-	accountant's report on behalf of the firm meets the
962		-	accounting experience requirements set out in the
963		-	professional standards for the services as required by the
964		-	board.
965		-	M. If a partner, shareholder or member is a legal
966		-	business entity, that legal business entity must be a firm.
967		-	N. Attest services may only be provided by a
968		-	certificate holder or a member of a firm that satisfies the
969		-	requirements of this section and Sections 61-28B-8 and HJC/HCEDC/HB 296
970		-	Page 20
	1009	+	61-28B-26 NMSA 1978, who is responsible for supervising attest
	1010	+	services or signs or authorizes someone to sign the
	1011	+	accountant's report on behalf of the firm meets the accounting
	1012	+	experience requirements set out in the professional standards
	1013	+	for such services.
	1014	+	I. An applicant for initial issuance or renewal of
	1015	+	a permit shall be required to register each office of the firm
	1016	+	.229431.5
	1017	+	- 19 - underscored material = new
	1018	+	[bracketed material] = delete
971	1019		1
972	1020		2
973	1021		3
974	1022		4
975	1023		5
976	1024		6
977	1025		7
978	1026		8
979	1027		9
980	1028		10
981	1029		11
982	1030		12
983	1031		13
984	1032		14
985	1033		15
986	1034		16
987	1035		17
988	1036		18
989	1037		19
990	1038		20
991	1039		21
992	1040		22
993	1041		23
994	1042		24
995	1043		25
996		-	61-28B-13 NMSA 1978. Attest services may not be performed by
997		-	a certificate holder who is a member of a firm that does not
998		-	meet the certificate holder's ownership requirements set
999		-	forth in this section."
1000		-	SECTION 6. Section 61-28B-17 NMSA 1978 (being Laws
1001		-	1999, Chapter 179, Section 17, as amended) is amended to
1002		-	read:
1003		-	"61-28B-17. ENFORCEMENT--UNLAWFUL ACTS.--
1004		-	A. Except as otherwise provided in the 1999 Public
1005		-	Accountancy Act, it is unlawful for a person to engage in
1006		-	practice in New Mexico unless the person is a licensee.
1007		-	B. Except as otherwise provided in the 1999 Public
1008		-	Accountancy Act, no person shall issue a report or financial
1009		-	statement for a person or a governmental unit or issue a
1010		-	report using any form of language conventionally used
1011		-	respecting an audit or review of financial statements, unless
1012		-	the person holds a current license or permit. The state
1013		-	auditor and the state auditor's auditing staff are considered
1014		-	to be in the practice of public accountancy.
1015		-	C. With the exception of persons cited in Section
1016		-	61-28B-18 NMSA 1978, a person who prepares a financial
1017		-	accounting and related statements and who is not the holder
1018		-	of a certificate or a permit under the provisions of that act
1019		-	shall use the following statement in the transmittal letter:
1020		-	"I (we) have prepared the accompanying financial statements HJC/HCEDC/HB 296
1021		-	Page 21
	1044	+	within New Mexico with the board and to show that all attest
	1045	+	services rendered in this state are under the charge of a
	1046	+	person holding a valid certificate issued pursuant to the 1999
	1047	+	Public Accountancy Act or the corresponding provision of prior
	1048	+	law or by some other state.
	1049	+	J. An applicant for initial issuance or renewal of
	1050	+	a permit shall list all foreign and domestic jurisdictions in
	1051	+	which it has applied for or holds permits as a certified public
	1052	+	accountant firm and list any past denial, revocation or
	1053	+	suspension of a permit by any jurisdiction. Each permit holder
	1054	+	or applicant shall notify the board in writing, within thirty
	1055	+	days of the occurrence of a change in the identities of
	1056	+	partners, officers, shareholders, members or managers whose
	1057	+	principal place of business is in this state, a change in the
	1058	+	number or location of offices within this state, a change in
	1059	+	the identity of the persons in charge of such offices and any
	1060	+	issuance, denial, revocation or suspension of a permit by
	1061	+	another jurisdiction.
	1062	+	K. A firm that falls out of compliance with the
	1063	+	provisions of the 1999 Public Accountancy Act due to changes in
	1064	+	firm ownership or personnel shall take corrective action to
	1065	+	bring the firm back into compliance as quickly as possible.
	1066	+	The board may grant a six-month period for a firm to take the
	1067	+	corrective action. Failure to bring the firm back into
	1068	+	compliance within six months shall result in the suspension or
	1069	+	.229431.5
	1070	+	- 20 - underscored material = new
	1071	+	[bracketed material] = delete
1022	1072		1
1023	1073		2
1024	1074		3
1025	1075		4
1026	1076		5
1027	1077		6
1028	1078		7
1029	1079		8
1030	1080		9
1031	1081		10
1032	1082		11
1033	1083		12
1034	1084		13
1035	1085		14
1036	1086		15
1037	1087		16
1038	1088		17
1039	1089		18
1040	1090		19
1041	1091		20
1042	1092		21
1043	1093		22
1044	1094		23
1045	1095		24
1046	1096		25
1047		-	of (name of entity) as of (time period) and for the (time
1048		-	period) ending (date). This presentation is limited to
1049		-	preparing in the form of financial statements information
1050		-	that is the representation of management (owners). I (we)
1051		-	have not audited or reviewed the accompanying financial
1052		-	statements and accordingly do not express an opinion or any
1053		-	other form of assurance on them.".
1054		-	D. No person shall indicate by title, designation,
1055		-	abbreviation, sign, card or device that the person is a
1056		-	certified public accountant or a registered public accountant
1057		-	unless the person is currently certified by the board
1058		-	pursuant to the 1999 Public Accountancy Act or is a firm
1059		-	currently permitted by the board pursuant to that act.
1060		-	Unless the person is a holder of a current certificate or
1061		-	permit, no person shall use any title, initials or
1062		-	designation intended to or substantially likely to indicate
1063		-	to the public that the person is a certified public
1064		-	accountant or registered public accountant.
1065		-	E. No person shall engage in practice unless the
1066		-	person:
1067		-	(1) holds a valid certificate or current
1068		-	permit;
1069		-	(2) is an employee supervised by a licensee
1070		-	pursuant to Section 61-28B-18 NMSA 1978 and not a partner,
1071		-	officer, shareholder or member of a firm; or HJC/HCEDC/HB 296
1072		-	Page 22
	1097	+	revocation of the firm permit.
	1098	+	L. As a condition to permit renewal, the board
	1099	+	shall require the applicant to undergo a peer review conducted
	1100	+	in accordance with board rules. The review shall include a
	1101	+	verification that a person in the firm, or a person qualifying
	1102	+	for practice privileges pursuant to Section 61-28B-26 NMSA
	1103	+	1978, who is responsible for supervising attest services and
	1104	+	signs or authorizes someone to sign the accountant's report on
	1105	+	behalf of the firm meets the accounting experience requirements
	1106	+	set out in the professional standards for the services as
	1107	+	required by the board.
	1108	+	M. If a partner, shareholder or member is a legal
	1109	+	business entity, that legal business entity must be a firm.
	1110	+	N. Attest services may only be provided by a
	1111	+	certificate holder or a member of a firm that satisfies the
	1112	+	requirements of this section and Sections 61-28B-8 and
	1113	+	61-28B-13 NMSA 1978. Attest services may not be performed by a
	1114	+	certificate holder who is a member of a firm that does not meet
	1115	+	the certificate holder's ownership requirements set forth in
	1116	+	this section."
	1117	+	SECTION 6. Section 61-28B-17 NMSA 1978 (being Laws 1999,
	1118	+	Chapter 179, Section 17, as amended) is amended to read:
	1119	+	"61-28B-17. ENFORCEMENT--UNLAWFUL ACTS.--
	1120	+	A. Except as otherwise provided in the 1999 Public
	1121	+	Accountancy Act, it is unlawful for a person to engage in
	1122	+	.229431.5
	1123	+	- 21 - underscored material = new
	1124	+	[bracketed material] = delete
1073	1125		1
1074	1126		2
1075	1127		3
1076	1128		4
1077	1129		5
1078	1130		6
1079	1131		7
1080	1132		8
1081	1133		9
1082	1134		10
1083	1135		11
1084	1136		12
1085	1137		13
1086	1138		14
1087	1139		15
1088	1140		16
1089	1141		17
1090	1142		18
1091	1143		19
1092	1144		20
1093	1145		21
1094	1146		22
1095	1147		23
1096	1148		24
1097	1149		25
1098		-	(3) is exempt from licensure pursuant to
1099		-	Subparagraph (a) of Paragraph (1) of Subsection C of Section
1100		-	61-28B-13 NMSA 1978.
1101		-	F. No person or firm holding a certificate or
1102		-	permit shall engage in practice using a professional or firm
1103		-	name or designation that is misleading about the legal form
1104		-	of the firm; provided, however, that names of one or more
1105		-	former partners, shareholders or members may be included in
1106		-	the name of a firm or its successors.
1107		-	G. No person shall sell, offer to sell or
1108		-	fraudulently obtain or furnish any certificate or permit nor
1109		-	shall the person fraudulently register as a certified public
1110		-	accountant or registered public accountant or practice in
1111		-	this state without being granted a certificate or permit as
1112		-	provided in the 1999 Public Accountancy Act.
1113		-	H. A licensee or the licensee's firm shall not
1114		-	receive a commission to recommend or refer a product or
1115		-	service to a client or to recommend to anyone else a product
1116		-	or service to be supplied by a client during the period the
1117		-	licensee or the licensee's firm is engaged to perform the
1118		-	following services for that client and during the period
1119		-	covered by any historical financial statements involved in
1120		-	the services:
1121		-	(1) an audit or review of a financial
1122		-	statement; HJC/HCEDC/HB 296
1123		-	Page 23
	1150	+	practice in New Mexico unless the person is a licensee.
	1151	+	B. Except as otherwise provided in the 1999 Public
	1152	+	Accountancy Act, no person shall issue a report or financial
	1153	+	statement for a person or a governmental unit or issue a report
	1154	+	using any form of language conventionally used respecting an
	1155	+	audit or review of financial statements, unless the person
	1156	+	holds a current license or permit. The state auditor and the
	1157	+	state auditor's auditing staff are considered to be in the
	1158	+	practice of public accountancy.
	1159	+	C. With the exception of persons cited in Section
	1160	+	61-28B-18 NMSA 1978, a person who prepares a financial
	1161	+	accounting and related statements and who is not the holder of
	1162	+	a certificate or a permit under the provisions of that act
	1163	+	shall use the following statement in the transmittal letter:
	1164	+	"I (we) have prepared the accompanying financial statements of
	1165	+	(name of entity) as of (time period) and for the (time period)
	1166	+	ending (date). This presentation is limited to preparing in
	1167	+	the form of financial statements information that is the
	1168	+	representation of management (owners). I (we) have not audited
	1169	+	or reviewed the accompanying financial statements and
	1170	+	accordingly do not express an opinion or any other form of
	1171	+	assurance on them.".
	1172	+	D. No person shall indicate by title, designation,
	1173	+	abbreviation, sign, card or device that the person is a
	1174	+	certified public accountant or a registered public accountant
	1175	+	.229431.5
	1176	+	- 22 - underscored material = new
	1177	+	[bracketed material] = delete
1124	1178		1
1125	1179		2
1126	1180		3
1127	1181		4
1128	1182		5
1129	1183		6
1130	1184		7
1131	1185		8
1132	1186		9
1133	1187		10
1134	1188		11
1135	1189		12
1136	1190		13
1137	1191		14
1138	1192		15
1139	1193		16
1140	1194		17
1141	1195		18
1142	1196		19
1143	1197		20
1144	1198		21
1145	1199		22
1146	1200		23
1147	1201		24
1148	1202		25
1149		-	(2) a compilation of a financial statement
1150		-	when the licensee expects or might reasonably expect that a
1151		-	third party will use the financial statement, and the
1152		-	compilation report does not disclose the lack of independence
1153		-	by the licensee; or
1154		-	(3) an examination of prospective financial
1155		-	information.
1156		-	I. A licensee or the licensee's firm that is not
1157		-	prohibited from receiving a commission by Subsection H of
1158		-	this section and that is paid or expects to be paid a
1159		-	commission shall disclose that fact in writing to the person
1160		-	for whom the licensee or the licensee's firm performs a
1161		-	service or refers or recommends a product or service. A
1162		-	licensee or firm that accepts or pays a referral fee for a
1163		-	service or to obtain a client shall disclose such acceptance
1164		-	or payment to the client in writing.
1165		-	J. A licensee or the licensee's firm shall not
1166		-	charge or receive a contingent fee for a client for whom the
1167		-	licensee or the licensee's firm performs the following
1168		-	services:
1169		-	(1) an audit or review of a financial
1170		-	statement;
1171		-	(2) a compilation of a financial statement
1172		-	when the licensee expects or reasonably might expect that a
1173		-	third party will use the financial statement and the HJC/HCEDC/HB 296
1174		-	Page 24
	1203	+	unless the person is currently certified by the board pursuant
	1204	+	to the 1999 Public Accountancy Act or is a firm currently
	1205	+	permitted by the board pursuant to that act. Unless the person
	1206	+	is a holder of a current certificate or permit, no person shall
	1207	+	use any title, initials or designation intended to or
	1208	+	substantially likely to indicate to the public that the person
	1209	+	is a certified public accountant or registered public
	1210	+	accountant.
	1211	+	E. No person shall engage in practice unless the
	1212	+	person:
	1213	+	(1) [the person] holds a valid certificate or
	1214	+	current permit; [or]
	1215	+	(2) [the person] is an employee supervised by
	1216	+	a licensee pursuant to Section 61-28B-18 NMSA 1978 and not a
	1217	+	partner, officer, shareholder or member of a firm; or
	1218	+	(3) is exempt from licensure pursuant to
	1219	+	Subparagraph (a) of Paragraph (1) of Subsection C of Section
	1220	+	61-28B-13 NMSA 1978.
	1221	+	F. No person or firm holding a certificate or
	1222	+	permit shall engage in practice using a professional or firm
	1223	+	name or designation that is misleading about the legal form of
	1224	+	the firm; provided, however, that names of one or more former
	1225	+	partners, shareholders or members may be included in the name
	1226	+	of a firm or its successors.
	1227	+	G. No person shall sell, offer to sell or
	1228	+	.229431.5
	1229	+	- 23 - underscored material = new
	1230	+	[bracketed material] = delete
1175	1231		1
1176	1232		2
1177	1233		3
1178	1234		4
1179	1235		5
1180	1236		6
1181	1237		7
1182	1238		8
1183	1239		9
1184	1240		10
1185	1241		11
1186	1242		12
1187	1243		13
1188	1244		14
1189	1245		15
1190	1246		16
1191	1247		17
1192	1248		18
1193	1249		19
1194	1250		20
1195	1251		21
1196	1252		22
1197	1253		23
1198	1254		24
1199	1255		25
1200		-	compilation report does not disclose a lack of independence;
	1256	+	fraudulently obtain or furnish any certificate or permit nor
	1257	+	shall the person fraudulently register as a certified public
	1258	+	accountant or registered public accountant or practice in this
	1259	+	state without being granted a certificate or permit as provided
	1260	+	in the 1999 Public Accountancy Act.
	1261	+	H. A licensee or the licensee's firm shall not
	1262	+	receive a commission to recommend or refer a product or service
	1263	+	to a client or to recommend to anyone else a product or service
	1264	+	to be supplied by a client during the period the licensee or
	1265	+	the licensee's firm is engaged to perform the following
	1266	+	services for that client and during the period covered by any
	1267	+	historical financial statements involved in the services:
	1268	+	(1) an audit or review of a financial
	1269	+	statement;
	1270	+	(2) a compilation of a financial statement
	1271	+	when the licensee expects or might reasonably expect that a
	1272	+	third party will use the financial statement, and the
	1273	+	compilation report does not disclose the lack of independence
	1274	+	by the licensee; or
1201	1275		(3) an examination of prospective financial
1202		-	information; or
1203		-	(4) preparation of an original or amended
1204		-	tax return or claim for tax refund, except in the case of
1205		-	federal, state or other taxes in which the findings are those
1206		-	of the tax authorities and not those of the licensee or in
1207		-	the case of professional services for which fees are to be
1208		-	fixed by courts or other public authorities and that are
1209		-	therefore indeterminate in amount at the time the
1210		-	professional services are undertaken.
1211		-	K. No licensee shall sign or certify any financial
1212		-	statements if the licensee knows the same to be materially
1213		-	false or fraudulent.
1214		-	L. For the purposes of this section, a person with
1215		-	practice privileges pursuant to Section 61-28B-26 NMSA 1978
1216		-	shall be deemed to have comparable licensure requirements to
1217		-	a certificate holder pursuant to Section 61-28B-9 NMSA 1978.
1218		-	Terms or references that refer to a certificate holder
1219		-	pursuant to Section 61-28B-9 NMSA 1978 shall include a person
1220		-	with practice privileges pursuant to Section 61-28B-26 NMSA
1221		-	1978.
1222		-	M. For the purposes of this section, a firm
1223		-	practicing under Subsection C or D of Section 61-28B-13 NMSA
1224		-	1978 may perform the services specified by the applicable HJC/HCEDC/HB 296
1225		-	Page 25
	1276	+	information.
	1277	+	I. A licensee or the licensee's firm that is not
	1278	+	prohibited from receiving a commission by Subsection H of this
	1279	+	section and that is paid or expects to be paid a commission
	1280	+	shall disclose that fact in writing to the person for whom the
	1281	+	.229431.5
	1282	+	- 24 - underscored material = new
	1283	+	[bracketed material] = delete
1226	1284		1
1227	1285		2
1228	1286		3
1229	1287		4
1230	1288		5
1231	1289		6
1232	1290		7
1233	1291		8
1234	1292		9
1235	1293		10
1236	1294		11
1237	1295		12
1238	1296		13
1239	1297		14
1240	1298		15
1241	1299		16
1242	1300		17
1243	1301		18
1244	1302		19
1245	1303		20
1246	1304		21
1247	1305		22
1248	1306		23
1249	1307		24
1250	1308		25
1251		-	provisions of the 1999 Public Accountancy Act and may use the
1252		-	terms "CPA" or "CPA firm" without obtaining a permit. Terms
1253		-	or references that refer to a firm holding a permit pursuant
1254		-	to Subsection B of Section 61-28B-13 NMSA 1978 shall include
1255		-	a firm practicing pursuant to Subsection C or D of Section
1256		-	61-28B-13 NMSA 1978."
1257		-	SECTION 7. Section 61-28B-26 NMSA 1978 (being Laws
1258		-	1999, Chapter 179, Section 26, as amended) is amended to
1259		-	read:
1260		-	"61-28B-26. PRACTICE PRIVILEGE AND DISCIPLINE FOR A
1261		-	CERTIFICATE HOLDER FROM ANOTHER STATE OR JURISDICTION--
1262		-	REQUIREMENTS.--
1263		-	A. Except as provided in Subsection D of this
1264		-	section, a person whose principal place of business is not in
1265		-	New Mexico shall be presumed to have met comparable licensure
1266		-	requirements and may exercise all the practice privileges of
1267		-	certificate holders of New Mexico without the need to obtain
1268		-	a certificate pursuant to Section 61-28B-9 NMSA 1978 if the
1269		-	person:
1270		-	(1) holds a valid license as a certified
1271		-	public accountant from any state that requires, as a
1272		-	condition of licensure, that a person meet the education and
1273		-	accounting experience requirements pursuant to Subsection D
1274		-	of Section 61-28B-8 NMSA 1978; or
1275		-	(2) holds a valid license or permit in good HJC/HCEDC/HB 296
1276		-	Page 26
	1309	+	licensee or the licensee's firm performs a service or refers or
	1310	+	recommends a product or service. A licensee or firm that
	1311	+	accepts or pays a referral fee for a service or to obtain a
	1312	+	client shall disclose such acceptance or payment to the client
	1313	+	in writing.
	1314	+	J. A licensee or the licensee's firm shall not
	1315	+	charge or receive a contingent fee for a client for whom the
	1316	+	licensee or the licensee's firm performs the following
	1317	+	services:
	1318	+	(1) an audit or review of a financial
	1319	+	statement;
	1320	+	(2) a compilation of a financial statement
	1321	+	when the licensee expects or reasonably might expect that a
	1322	+	third party will use the financial statement and the
	1323	+	compilation report does not disclose a lack of independence;
	1324	+	(3) an examination of prospective financial
	1325	+	information; or
	1326	+	(4) preparation of an original or amended tax
	1327	+	return or claim for tax refund, except in the case of federal,
	1328	+	state or other taxes in which the findings are those of the tax
	1329	+	authorities and not those of the licensee or in the case of
	1330	+	professional services for which fees are to be fixed by courts
	1331	+	or other public authorities and that are therefore
	1332	+	indeterminate in amount at the time the professional services
	1333	+	are undertaken.
	1334	+	.229431.5
	1335	+	- 25 - underscored material = new
	1336	+	[bracketed material] = delete
1277	1337		1
1278	1338		2
1279	1339		3
1280	1340		4
1281	1341		5
1282	1342		6
1283	1343		7
1284	1344		8
1285	1345		9
1286	1346		10
1287	1347		11
1288	1348		12
1289	1349		13
1290	1350		14
1291	1351		15
1292	1352		16
1293	1353		17
1294	1354		18
1295	1355		19
1296	1356		20
1297	1357		21
1298	1358		22
1299	1359		23
1300	1360		24
1301	1361		25
1302		-	standing as a certified public accountant or its equivalent
1303		-	from a jurisdiction in the United States; provided that the
1304		-	licensee, at the time of licensure, was required to provide
1305		-	evidence of having successfully completed a qualifying exam
1306		-	in accordance with the requirements of the licensing
1307		-	jurisdiction and the education and accounting experience
1308		-	requirements pursuant to Subsection D of Section 61-28B-8
1309		-	NMSA 1978.
1310		-	B. Notwithstanding any other provision of law, a
1311		-	person who qualifies for the practice privilege pursuant to
1312		-	this section may offer or render professional services
1313		-	whether in person or by mail, telephone or electronic means,
1314		-	and no notice, fee or other submission shall be required of
1315		-	the person.
1316		-	C. A person licensed in another state exercising
1317		-	the practice privilege afforded pursuant to this section
1318		-	shall consent, as a condition of exercising the practice
1319		-	privilege:
1320		-	(1) to submit to the personal and subject-
1321		-	matter jurisdiction and disciplinary authority of the board;
1322		-	(2) to comply with the 1999 Public
1323		-	Accountancy Act and the rules adopted by the board;
1324		-	(3) to cease offering or rendering
1325		-	professional attest services in New Mexico in the event the
1326		-	license from the state of the person's principal place of HJC/HCEDC/HB 296
1327		-	Page 27
	1362	+	K. No licensee shall sign or certify any financial
	1363	+	statements if the licensee knows the same to be materially
	1364	+	false or fraudulent.
	1365	+	L. For the purposes of this section, a person with
	1366	+	practice privileges pursuant to Section 61-28B-26 NMSA 1978
	1367	+	shall be [substantially equivalent ] deemed to have comparable
	1368	+	licensure requirements to a certificate holder pursuant to
	1369	+	Section 61-28B-9 NMSA 1978. Terms or references that refer to
	1370	+	a certificate holder pursuant to Section 61-28B-9 NMSA 1978
	1371	+	shall include a person with practice privileges pursuant to
	1372	+	Section 61-28B-26 NMSA 1978.
	1373	+	M. For the purposes of this section, a firm
	1374	+	practicing under Subsection C or D of Section 61-28B-13 NMSA
	1375	+	1978 may perform the services specified by the applicable
	1376	+	provisions of the 1999 Public Accountancy Act and may use the
	1377	+	terms "CPA" or "CPA firm" without obtaining a permit. Terms or
	1378	+	references that refer to a firm holding a permit pursuant to
	1379	+	Subsection B of Section 61-28B-13 NMSA 1978 shall include a
	1380	+	firm practicing pursuant to Subsection C or D of Section
	1381	+	61-28B-13 NMSA 1978."
	1382	+	SECTION 7. Section 61-28B-26 NMSA 1978 (being Laws 1999,
	1383	+	Chapter 179, Section 26, as amended) is amended to read:
	1384	+	"61-28B-26. PRACTICE PRIVILEGE AND DISCIPLINE FOR A
	1385	+	CERTIFICATE HOLDER FROM [A STATE WHOSE ACCOUNTANCY STATUTE IS
	1386	+	SUBSTANTIALLY EQUIVALENT ] ANOTHER STATE OR JURISDICTION--
	1387	+	.229431.5
	1388	+	- 26 - underscored material = new
	1389	+	[bracketed material] = delete
1328	1390		1
1329	1391		2
1330	1392		3
1331	1393		4
1332	1394		5
1333	1395		6
1334	1396		7
1335	1397		8
1336	1398		9
1337	1399		10
1338	1400		11
1339	1401		12
1340	1402		13
1341	1403		14
1342	1404		15
1343	1405		16
1344	1406		17
1345	1407		18
1346	1408		19
1347	1409		20
1348	1410		21
1349	1411		22
1350	1412		23
1351	1413		24
1352	1414		25
1353		-	business is no longer valid; and
1354		-	(4) to the appointment of the state board
1355		-	that issued the license as agent upon whom process may be
1356		-	served in any action or proceeding by the New Mexico public
1357		-	accountancy board against the licensee.
1358		-	D. A person who qualifies for the practice
1359		-	privileges pursuant to this section and who performs an
1360		-	attest service shall meet the requirements of Section
1361		-	61-28B-11 NMSA 1978.
1362		-	E. A certificate or permit holder of New Mexico
1363		-	that offers or renders an attest service or uses its
1364		-	certified public accountant title in another state shall be
1365		-	subject to disciplinary action in New Mexico for an act
1366		-	committed in another state for which it would be subject to
1367		-	discipline in the other state. The board shall investigate
1368		-	any complaint made by the board of accountancy in another
1369		-	state in accordance with the provisions of the 1999 Public
1370		-	Accountancy Act."
1371		-	SECTION 8. Section 61-28B-27 NMSA 1978 (being Laws
1372		-	1999, Chapter 179, Section 27, as amended) is amended to
1373		-	read:
1374		-	"61-28B-27. FEES.--Except as provided in Section
1375		-	61-1-34 NMSA 1978 and Subsection B of Section 61-28B-11 NMSA
1376		-	1978, the board may collect from certificate holders, permit
1377		-	holders, applicants and others the following fees: HJC/HCEDC/HB 296
1378		-	Page 28
	1415	+	REQUIREMENTS.--
	1416	+	A. Except as provided in Subsection D of this
	1417	+	section, a person whose principal place of business is not in
	1418	+	New Mexico shall be presumed to have [qualifications
	1419	+	substantially similar to New Mexico's requirements ] met
	1420	+	comparable licensure requirements and may exercise all the
	1421	+	practice privileges of certificate holders of New Mexico
	1422	+	without the need to obtain a certificate pursuant to Section
	1423	+	61-28B-9 NMSA 1978 if the person:
	1424	+	(1) holds a valid license as a certified
	1425	+	public accountant from any state that requires, as a condition
	1426	+	of licensure, that a person
	1427	+	[(a) have at least one hundred fifty
	1428	+	semester hours of college education including a baccalaureate
	1429	+	or higher degree conferred by a college or university
	1430	+	acceptable to the board;
	1431	+	(b) achieve a passing grade on the
	1432	+	uniform certified public accountant examination; and
	1433	+	(c) possess at least one year of
	1434	+	experience, including providing any type of service or advice
	1435	+	involving the use of accounting, attest, compilation,
	1436	+	management advisory, financial advisory, tax or consulting
	1437	+	skills, which may be obtained through government, industry,
	1438	+	academic or public practice, all of which can be verified by a
	1439	+	licensee] meet the education requirements pursuant to
	1440	+	.229431.5
	1441	+	- 27 - underscored material = new
	1442	+	[bracketed material] = delete
1379	1443		1
1380	1444		2
1381	1445		3
1382	1446		4
1383	1447		5
1384	1448		6
1385	1449		7
1386	1450		8
1387	1451		9
1388	1452		10
1389	1453		11
1390	1454		12
1391	1455		13
1392	1456		14
1393	1457		15
1394	1458		16
1395	1459		17
1396	1460		18
1397	1461		19
1398	1462		20
1399	1463		21
1400	1464		22
1401	1465		23
1402	1466		24
1403	1467		25
1404		-	A. for examination, a fee not to exceed four
1405		-	hundred dollars ($400) per examination section;
1406		-	B. for certificate issuance or renewal, a fee not
1407		-	to exceed one hundred seventy-five dollars ($175) per year;
1408		-	provided, however, that the board may charge a biennial fee
1409		-	of not more than twice the annual fee;
1410		-	C. for firm permits, a fee not to exceed one
1411		-	hundred dollars ($100) per year; provided, however, that the
1412		-	board may charge a biennial fee of not more than twice the
1413		-	annual fee;
1414		-	D. for incomplete or delinquent continuing
1415		-	education reports, certificate or permit renewals, a fee not
1416		-	to exceed one hundred dollars ($100) each;
1417		-	E. for preparing and providing licensure and
1418		-	examination information to others, a fee not to exceed
1419		-	seventy-five dollars ($75.00) per report;
1420		-	F. reasonable administrative fees for such
1421		-	services as research, record copies, duplicate or replacement
1422		-	certificates or permits;
1423		-	G. a fee for fingerprinting and background check
1424		-	for an applicant for certification not to exceed one hundred
1425		-	dollars ($100);
1426		-	H. for certificate reinstatement, a fee not to
1427		-	exceed one hundred seventy-five dollars ($175), plus past due
1428		-	fees and penalties; HJC/HCEDC/HB 296
1429		-	Page 29
	1468	+	Subsection D of Section 61-28B-8 NMSA 1978 ; or
	1469	+	(2) holds a valid license or permit in good
	1470	+	standing as a certified public accountant or its equivalent
	1471	+	from [any state that does not meet the requirements of
	1472	+	Paragraph (1) of Subsection A of this section, but the person's
	1473	+	certified public accountant qualifications are substantially
	1474	+	equivalent to those requirements. A person who passed the
	1475	+	uniform certified public accountant examination and holds a
	1476	+	valid license issued by any other state prior to January 1,
	1477	+	2012 may be exempt from the education requirement in
	1478	+	Subparagraph (a) of Paragraph (1) of this subsection ] a
	1479	+	jurisdiction in the United States; provided that the licensee,
	1480	+	at the time of licensure, was required to provide evidence of
	1481	+	having successfully completed a qualifying exam in accordance
	1482	+	with the requirements of the licensing jurisdiction .
	1483	+	B. Notwithstanding any other provision of law, a
	1484	+	person who qualifies for the practice privilege pursuant to
	1485	+	this section may offer or render professional services whether
	1486	+	in person or by mail, telephone or electronic means, and no
	1487	+	notice, fee or other submission shall be required of the
	1488	+	person.
	1489	+	C. A person licensed in another state exercising
	1490	+	the practice privilege afforded pursuant to this section shall
	1491	+	consent, as a condition of exercising the practice privilege:
	1492	+	(1) to submit to the personal and subject-
	1493	+	.229431.5
	1494	+	- 28 - underscored material = new
	1495	+	[bracketed material] = delete
1430	1496		1
1431	1497		2
1432	1498		3
1433	1499		4
1434	1500		5
1435	1501		6
1436	1502		7
1437	1503		8
1438	1504		9
1439	1505		10
1440	1506		11
1441	1507		12
1442	1508		13
1443	1509		14
1444	1510		15
1445	1511		16
1446	1512		17
1447	1513		18
1448	1514		19
1449	1515		20
1450	1516		21
1451	1517		22
1452	1518		23
1453	1519		24
1454	1520		25
	1521	+	matter jurisdiction and disciplinary authority of the board;
	1522	+	(2) to comply with the 1999 Public Accountancy
	1523	+	Act and the rules adopted by the board;
	1524	+	(3) to cease offering or rendering
	1525	+	professional attest services in New Mexico in the event the
	1526	+	license from the state of the person's principal place of
	1527	+	business is no longer valid; and
	1528	+	(4) to the appointment of the state board that
	1529	+	issued the license as agent upon whom process may be served in
	1530	+	any action or proceeding by the New Mexico public accountancy
	1531	+	board against the licensee.
	1532	+	D. A person who qualifies for the practice
	1533	+	privileges pursuant to this section and who performs an attest
	1534	+	service shall meet the requirements of Section 61-28B-11 NMSA
	1535	+	1978.
	1536	+	E. A certificate or permit holder of New Mexico
	1537	+	that offers or renders an attest service or uses its certified
	1538	+	public accountant title in another state shall be subject to
	1539	+	disciplinary action in New Mexico for an act committed in
	1540	+	another state for which it would be subject to discipline in
	1541	+	the other state. The board shall investigate any complaint
	1542	+	made by the board of accountancy in another state in accordance
	1543	+	with the provisions of the 1999 Public Accountancy Act."
	1544	+	SECTION 8. Section 61-28B-27 NMSA 1978 (being Laws 1999,
	1545	+	Chapter 179, Section 27, as amended) is amended to read:
	1546	+	.229431.5
	1547	+	- 29 - underscored material = new
	1548	+	[bracketed material] = delete
	1549	+	1
	1550	+	2
	1551	+	3
	1552	+	4
	1553	+	5
	1554	+	6
	1555	+	7
	1556	+	8
	1557	+	9
	1558	+	10
	1559	+	11
	1560	+	12
	1561	+	13
	1562	+	14
	1563	+	15
	1564	+	16
	1565	+	17
	1566	+	18
	1567	+	19
	1568	+	20
	1569	+	21
	1570	+	22
	1571	+	23
	1572	+	24
	1573	+	25
	1574	+	"61-28B-27. FEES.--Except as provided in Section 61-1-34
	1575	+	NMSA 1978 and Subsection B of Section 61-28B-11 NMSA 1978 , the
	1576	+	board may collect from certificate holders, permit holders,
	1577	+	applicants and others the following fees:
	1578	+	A. for examination, a fee not to exceed four
	1579	+	hundred dollars ($400) per examination section;
	1580	+	B. for certificate issuance or renewal, a fee not
	1581	+	to exceed one hundred seventy-five dollars ($175) per year;
	1582	+	provided, however, that the board may charge a biennial fee of
	1583	+	not more than twice the annual fee;
	1584	+	C. for firm permits, a fee not to exceed one
	1585	+	hundred dollars ($100) per year; provided, however, that the
	1586	+	board may charge a biennial fee of not more than twice the
	1587	+	annual fee;
	1588	+	D. for incomplete or delinquent continuing
	1589	+	education reports, certificate or permit renewals, a fee not to
	1590	+	exceed one hundred dollars ($100) each;
	1591	+	E. for preparing and providing licensure and
	1592	+	examination information to others, a fee not to exceed seventy-
	1593	+	five dollars ($75.00) per report;
	1594	+	F. reasonable administrative fees for such services
	1595	+	as research, record copies, duplicate or replacement
	1596	+	certificates or permits;
	1597	+	G. a fee for fingerprinting and background check
	1598	+	for an applicant for certification not to exceed one hundred
	1599	+	.229431.5
	1600	+	- 30 - underscored material = new
	1601	+	[bracketed material] = delete
	1602	+	1
	1603	+	2
	1604	+	3
	1605	+	4
	1606	+	5
	1607	+	6
	1608	+	7
	1609	+	8
	1610	+	9
	1611	+	10
	1612	+	11
	1613	+	12
	1614	+	13
	1615	+	14
	1616	+	15
	1617	+	16
	1618	+	17
	1619	+	18
	1620	+	19
	1621	+	20
	1622	+	21
	1623	+	22
	1624	+	23
	1625	+	24
	1626	+	25
	1627	+	dollars ($100);
	1628	+	H. for certificate reinstatement, a fee not to
	1629	+	exceed one hundred seventy-five dollars ($175), plus past due
	1630	+	fees and penalties;
1455	1631		I. for waiver to comply with continuing
1456	1632		professional education requirements, a fee not to exceed
1457	1633		seventy-five dollars ($75.00) per application; and
1458	1634		J. for reentry into active certificate status and
1459	1635		to comply with continuing education, a fee not to exceed
1460	1636		seventy-five dollars ($75.00) per application."
1461		-	~~SECTION 9.~~ ~~EFFECTIVE DATE.--The effective date of the~~
1462		-	~~provisions of this act is January 1, 2026.~~
	1637	+	- 31 -
	1638	+	.229431.5