SENATE BILL 322
47th legislature - STATE OF NEW MEXICO - second session, 2006
INTRODUCED BY
John Arthur Smith
FOR THE REVENUE STABILIZATION AND TAX POLICY COMMITTEE
AN ACT
RELATING TO TAXATION; PERMITTING THE TAXATION AND REVENUE DEPARTMENT TO INFORM A LICENSING BODY OF LICENSEE FAILURE TO FILE OR PAY TAXES AND OTHER RELEVANT TAXPAYER INFORMATION FOR USE IN DISCIPLINARY PROCEEDINGS; PROVIDING GROUNDS FOR ATTORNEY DISBARMENT AND FOR SUSPENSION OR REVOCATION OF PROFESSIONAL OR OCCUPATIONAL LICENSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. A new section of the Tax Administration Act is enacted to read:
"[NEW MATERIAL] DEPARTMENT POWER TO INFORM LICENSING BODY OF FAILURE TO FILE RETURN OR PAY TAX.--
A. When a licensee does not file the licensee's income tax return or the return of any other state or local tax administered pursuant to the Tax Administration Act for which the licensee is responsible or to pay any settled tax liability, the department may notify the licensing body of the identity of the taxpayer, the taxes involved, the failure to file or to pay and request the body to initiate disciplinary proceedings. If the licensing body initiates disciplinary proceedings, the department may reveal to the body additional relevant information for use in the proceedings.
B. For the purposes of this section:
(1) "licensee" means a person licensed as an attorney pursuant to Chapter 36, Article 2 NMSA 1978 or licensed pursuant to Chapter 61 NMSA 1978 to engage in a profession or occupation; and
(2) "settled tax liability" means a tax liability of the licensee of one thousand dollars ($1,000) or more established pursuant to any tax or tax act administered pursuant to the Tax Administration Act that has not been protested within the time limits prescribed by Section 7-1-24 NMSA 1978 or, if protested, has been decided against the licensee in a decision that may not be appealed or for which the time to appeal has expired."
Section 2. Section 36-2-18 NMSA 1978 (being Laws 1909, Chapter 53, Section 34, as amended) is amended to read:
"36-2-18. GROUNDS FOR DISBARMENT AND SUSPENSION BY THE SUPREME COURT.--[SEC. 35.]
A. An attorney may be disbarred or suspended by the supreme court for any of the following causes arising after [his] the attorney's admission to practice:
(1) [his] the attorney's conviction of a felony or misdemeanor involving moral turpitude, in which case the record of conviction is conclusive;
(2) [Wilful] willful disobedience or violation of an order of the court requiring [him] the attorney to do or forbear an act connected with or in the course of [his] the attorney's profession and any violation of the oath taken by [him] the attorney or of [his] the attorney's duty as such attorney as [before] provided in [this] Chapter 36 NMSA 1978;
(3) corruptly or [wilfully] willfully and without authority appearing as attorney for a party to an action or proceeding;
(4) lending [his] the attorney's name to be used as an attorney by another party who is not an attorney;
(5) failing or refusing to account for money of [his] the attorney's client coming into [his] the attorney's hands as such attorney;
(6) failing to file a state income tax return or any other state or local tax return for which the attorney is responsible or failing to pay a settled tax liability owed by the attorney; or
[(6)] (7) for any other act to which such a consequence is by law attached.
B. For the purposes of this section, "settled tax liability" means:
(1) for taxes and tax acts administered pursuant to the Tax Administration Act, a tax liability of the licensee of one thousand dollars ($1,000) or more established under any tax or tax act administered under the Tax Administration Act that has not been protested within the time limits prescribed by Section 7-1-24 NMSA 1978 or, if protested, has been decided against the licensee in a decision that may not be appealed or for which the time to appeal has expired; or
(2) for taxes and tax acts not administered pursuant to the Tax Administration Act, a tax liability of at least five hundred dollars ($500) that the licensee has not contested by an available administrative or judicial procedure within prescribed time limits or, if contested, has been decided against the licensee in a decision that may not be appealed or for which the time to appeal has expired."
Section 3. A new section of the Uniform Licensing Act is enacted to read:
"[NEW MATERIAL] GROUNDS FOR SUSPENSION OR REVOCATION OF LICENSE.--
A. In addition to grounds specified in any other article of Chapter 61 NMSA 1978 or grounds specified by action of a board, the failure or refusal of a licensee to file the licensee's income tax return or other state or local tax return for which the licensee is responsible or to pay a settled tax liability owed by the licensee is grounds for the revocation or suspension of the licensee's license. Discovery of the failure or refusal shall be deemed to occur on the date the board is notified of the failure or refusal by the agency responsible for administering the tax.
B. For the purposes of this section, "settled tax liability" means:
(1) for taxes and tax acts administered pursuant to the Tax Administration Act, a tax liability of the licensee of one thousand dollars ($1,000) or more established under any tax or tax act administered under the Tax Administration Act that has not been protested within the time limits prescribed by Section 7-1-24 NMSA 1978 or, if protested, has been decided against the licensee in a decision that may not be appealed or for which the time to appeal has expired; or
(2) for taxes and tax acts not administered pursuant to the Tax Administration Act, a tax liability of at least five hundred dollars ($500) that the licensee has not contested by an available administrative or judicial procedure within prescribed time limits or, if contested, has been decided against the licensee in a decision that may not be appealed or for which the time to appeal has expired."
Section 4. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2006.