pg_0001

SB 792

Page 1

AN ACT

RELATING TO LICENSURE; EXPANDING THE POWERS AND DUTIES OF THE

NEW MEXICO PUBLIC ACCOUNTANCY BOARD; PROVIDING FOR

FINGERPRINTING AND BACKGROUND CHECK OF AN APPLICANT;

INCREASING THE AMOUNT IMPOSED FOR AN ADMINISTRATIVE FINE;

PROVIDING PENALTIES; AMENDING AND ENACTING SECTIONS OF THE

1999 PUBLIC ACCOUNTANCY ACT.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. Section 61-28B-1 NMSA 1978 (being Laws 1999,

Chapter 179, Section 1) is amended to read:

"61-28B-1. SHORT TITLE.--Chapter 61, Article 28B NMSA

1978 may be cited as the "1999 Public Accountancy Act"."

Section 2. Section 61-28B-5 NMSA 1978 (being Laws 1999,

Chapter 179, Section 5, as amended) is amended to read:

"61-28B-5. BOARD--POWERS AND DUTIES.--

A. The board may:

(1) appoint committees or persons to advise

or assist it in carrying out the provisions of the 1999

Public Accountancy Act;

(2) retain its own counsel to advise and

assist it in addition to advice and assistance provided by

the attorney general;

(3) contract, sue and be sued and have and

use a seal;

pg_0002

SB 792

Page 2

(4) cooperate with the appropriate

authorities in other states in investigation and enforcement

concerning violations of the 1999 Public Accountancy Act and

comparable acts of other states; and

(5) adopt and file in accordance with the

Uniform Licensing Act and the State Rules Act rules to carry

out the provisions of the 1999 Public Accountancy Act,

including rules governing the administration and enforcement

of the 1999 Public Accountancy Act and the conduct of

certificate and permit holders.

B. The board shall:

(1) maintain a registry of the names and

addresses of certificate and permit holders; and

(2) develop, in conjunction with the

department of public safety, rules requiring a criminal

history background check of an applicant for initial or

reciprocal certification in New Mexico as provided for in the

1999 Public Accountancy Act."

Section 3. Section 61-28B-20 NMSA 1978 (being Laws

1999, Chapter 179, Section 20) is amended to read:

"61-28B-20. ENFORCEMENT--ADMINISTRATIVE VIOLATIONS AND

REMEDIES.--

A. The board may take, after providing a person

due process pursuant to the Uniform Licensing Act, corrective

action identified in Subsection B of this section following a

pg_0003

SB 792

Page 3

finding that an applicant or licensee:

(1) committed fraud or deceit in obtaining a

certificate or permit;

(2) lost a certificate or permit through

cancellation, revocation, suspension or refusal of renewal in

any other state for cause, as defined by board rule;

(3) failed to maintain compliance with the

requirements of the 1999 Public Accountancy Act and board

rules for issuance or renewal of a certificate or permit or

failed to report material changes to the board, as required

by board rule;

(4) lost the authorization to practice in

any state or before any federal agency through revocation or

suspension of that authorization;

(5) committed dishonest, fraudulent or

grossly negligent acts in the practice of public accountancy

or in the filing or failure to file the applicant's or

licensee's own income or other federal, state or local tax

returns;

(6) violated a provision of the 1999 Public

Accountancy Act or a rule promulgated by the board pursuant

to that act;

(7) violated a rule of professional conduct

promulgated by the board pursuant to the 1999 Public

Accountancy Act;

pg_0004

SB 792

Page 4

(8) has been convicted of a felony or of a

crime an element of which is dishonesty or fraud under the

laws of the United States, of New Mexico or of any other

state, or of any other jurisdiction, if the acts involved

would have constituted a crime under the laws of New Mexico;

(9) performed a fraudulent act while holding

a certificate or permit issued pursuant to the 1999 Public

Accountancy Act or prior law; or

(10) participated in any conduct reflecting

adversely upon the applicant's or licensee's fitness to

engage in practice.

B. After a finding by the board that an applicant

or licensee has committed a violation identified in

Subsection A of this section, the board may take, with or

without terms, conditions and limitations, one or more of the

following corrective actions:

(1) deny an application or revoke a

certificate or permit issued pursuant to the 1999 Public

Accountancy Act or corresponding provisions of prior law;

(2) suspend a certificate or permit for a

period of not more than five years;

(3) reprimand, censure or limit the scope of

practice of a licensee;

(4) impose an administrative fine not

exceeding ten thousand dollars ($10,000); or

pg_0005

SB 792

Page 5

(5) place the licensee on probation.

C. In lieu of or in addition to a remedy

specifically provided in Subsection B of this section, the

board may require of a licensee:

(1) a quality review conducted in such a

fashion as the board may specify;

(2) satisfactory completion of such

continuing professional education programs as the board may

specify;

(3) correction of the violation identified;

and

(4) any other suitable remedial action as

determined by the board.

D. In a proceeding in which a remedy provided by

Subsection B or C of this section is imposed, the board may

also require the respondent to pay the costs of the

proceeding."

Section 4. Section 61-28B-27 NMSA 1978 (being Laws

1999, Chapter 179, Section 27, as amended) is amended to

read:

"61-28B-27. FEES.--The board may collect from

certificate holders, permit holders, applicants and others

the following fees:

A. for examination, a fee not to exceed four

hundred dollars ($400) per examination section;

pg_0006

SB 792

Page 6

B. for certificate issuance or renewal, a fee not

to exceed one hundred seventy-five dollars ($175) per year;

provided, however, the board may charge a biennial fee of not

more than twice the annual fee;

C. for firm permits, a fee not to exceed one

hundred dollars ($100) per year; provided, however, the board

may charge a biennial fee of not more than twice the annual

fee;

D. for incomplete or delinquent continuing

education reports, certificate or permit renewals, a fee not

to exceed one hundred dollars ($100) each;

E. for preparing and providing licensure and

examination information to others, a fee not to exceed

seventy-five dollars ($75.00) per report;

F. reasonable administrative fees for such

services as research, record copies, duplicate or replacement

certificates or permits;

G. a fee for fingerprinting and background check

for an applicant for certification not to exceed one hundred

dollars ($100);

H. for certificate reinstatement, a fee not to

exceed one hundred seventy-five dollars ($175), plus past due

fees and penalties;

I. for waiver to comply with continuing

professional education requirements, a fee not to exceed

pg_0007

SB 792

Page 7

seventy-five dollars ($75.00) per application; and

J. for reentry into active certificate status and

to comply with continuing education, a fee not to exceed

seventy-five dollars ($75.00) per application."

Section 5. A new section of the 1999 Public Accountancy

Act is enacted to read:

"FINGERPRINTING--CRIMINAL HISTORY BACKGROUND CHECKS.--

A. All applicants for certification as provided

for in the 1999 Public Accountancy Act shall:

(1) be required to provide fingerprints on

two fingerprint cards for submission to the federal bureau of

investigation to conduct a national criminal history

background check and to the department of public safety to

conduct a state criminal history check;

(2) pay the cost of obtaining the

fingerprints and criminal history background checks; and

(3) have the right to inspect or challenge

the validity of the record development by the background

check if the applicant is denied certification as established

by board rule.

B. Electronic live scans may be used for

conducting criminal history background checks.

C. Criminal history records obtained by the board

pursuant to the provisions of this section are confidential.

The board is authorized to use criminal history records

pg_0008

SB 792

Page 8

obtained from the federal bureau of investigation and the

department of public safety to conduct background checks on

applicants for certification as provided for in the 1999

Public Accountancy Act.

D. Criminal history records obtained pursuant to

the provisions of this section shall not be used for any

purpose other than conducting background checks. Criminal

history records obtained pursuant to the provisions of this

section and the information contained in those records shall

not be released or disclosed to any other person or agency,

except pursuant to a court order or with the written consent

of the person who is the subject of the records.

E. A person who releases or discloses criminal

history records or information contained in those records in

violation of the provisions of this section is guilty of a

misdemeanor and shall be sentenced pursuant to the provisions

of Section 31-19-1 NMSA 1978."