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| SPONSOR: | Maes | DATE TYPED: | 1/24/00 | HB | |||
| SHORT TITLE: | Amending a Section of the 1999 Public Accountancy Act | SB | 31 | ||||
| ANALYST: | Valdes | ||||||
| Recurring
or Non-Rec |
Fund
Affected | ||||
| FY00 | FY01 | FY00 | FY01 | ||
| NFI | |||||
(Parenthesis ( ) Indicate Expenditure Decreases)
| Subsequent
Years Impact |
Recurring
or Non-Rec |
Fund
Affected | ||
| FY00 | FY01 | |||
(Parenthesis ( ) Indicate Revenue Decreases)
Duplicates/Conflicts with/Companion to/Relates to
SOURCES OF INFORMATION
Regulation and Licensing Department
SUMMARY
Synopsis of Bill
The bill lowers the minimum Certified Public Accountant (CPA) ownership of a CPA firm from (60%) to simple majority (51%). This will enable CPA firms to offer ownership interest to active participants in the firm at a level that will still preserve licensee control.
Significant Issues
The bill will enable CPA firms to offer ownership interests to employees, which will enable firms to better compete in the market. The New Mexico Board of Accountancy and the New Mexico Society of Certified Public Accountants support this legislation.
This bill advocates a CPA firm ownership requirement that parallels the current national standard, as represented by the Uniform Accountancy Act, jointly drafted by the National Association of State Boards of Accountancy and the American Institute of Certified Public Accountants.
FISCAL IMPLICATIONS
N.A.
ADMINISTRATIVE IMPLICATIONS
N.A.
MFV/njw