0001| SENATE BILL 692
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0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0003| INTRODUCED BY
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0004| TIMOTHY Z. JENNINGS
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0005|
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0006|
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0007|
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0008|
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0009|
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0010| AN ACT
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0011| RELATING TO PUBLIC ACCOUNTANCY; AMENDING SECTIONS OF THE PUBLIC
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0012| ACCOUNTANCY ACT.
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0013|
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0014| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0015| Section 1. Section 61-28A-3 NMSA 1978 (being Laws 1992,
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0016| Chapter 10, Section 3) is amended to read:
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0017| "61-28A-3. DEFINITIONS.--As used in the Public
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0018| Accountancy Act:
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0019| A. "board" means the New Mexico state board of
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0020| public accountancy;
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0021| B. "certified public accountant" means an
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0022| individual who has successfully met the certification
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0023| requirements for certified public accountant set forth in the
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0024| Public Accountancy Act and who has been granted a certificate
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0025| by the board;
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0001| C. "continuing professional education" means
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0002| courses in accounting, auditing, tax or other functions of
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0003| public accountancy identified and approved by the board and
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0004| provided to individuals seeking to maintain a valid permit to
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0005| practice;
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0006| D. "firm" means a sole proprietorship, a
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0007| professional corporation [or], a partnership, a limited
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0008| liability company or other form of business entity permitted by
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0009| state law;
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0010| E. "fund" means the public accountancy fund;
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0011| F. "person" means an individual or firm;
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0012| G. "practice" means the performance of public
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0013| accountancy or the offering to perform public accountancy for a
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0014| client or potential client by a person holding himself out to
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0015| the public as a permit holder or registered firm;
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0016| H. "practitioner" means a registered firm or an
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0017| individual engaged in the practice of public accountancy
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0018| holding a valid certificate and permit;
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0019| I. "public accountancy" means the performance of
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0020| one or more kinds of services involving accounting or auditing
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0021| skills, including the issuance of reports on financial
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0022| statements, the performance of one or more kinds of management,
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0023| financial advisory or consulting services, the preparation of
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0024| tax returns or the furnishing of advice on tax matters;
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0025| J. "quality review" or "peer review" means a
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0001| study, appraisal or review of one or more aspects of the
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0002| accounting and auditing work of a practitioner by a
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0003| practitioner who is not affiliated with the person or firm
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0004| being reviewed;
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0005| K. "reciprocal jurisdiction" means a state or
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0006| foreign country identified by the board by rule as having
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0007| standards for authorizing a person to practice public
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0008| accountancy equivalent to those prescribed in New Mexico law
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0009| and by board rule;
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0010| L. "registered firm" means a firm that has been
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0011| granted a registration by the board pursuant to the Public
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0012| Accountancy Act;
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0013| M. "registered public accountant" means an
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0014| individual who, prior to December 31, 1990, successfully met
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0015| the certification requirements for registered public accountant
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0016| set forth in the Public Accountancy Act or in prior law and who
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0017| has been granted a certificate by the board;
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0018| N. "report" means an opinion or other writing that:
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0019| (1) states or implies assurance as to the
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0020| reliability of any financial statements;
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0021| (2) includes or is accompanied by any
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0022| statement or implication that the person issuing it has special
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0023| knowledge or competency in accounting or auditing indicated by
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0024| the use of names, titles or abbreviations likely to be
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0025| understood to identify the author of the report as a
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0001| practitioner; and
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0002| (3) includes the following types of reports as
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0003| they are defined by board rule:
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0004| (a) a compilation report;
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0005| (b) a review report; or
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0006| (c) an audit report;
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0007| O. "rule" means any written directive of general
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0008| application duly adopted by the board; and
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0009| P. "state" means any state or insular possession of
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0010| the United States, including the District of Columbia, Puerto
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0011| Rico, the United States Virgin Islands and Guam."
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0012| Section 2. Section 61-28A-15 NMSA 1978 (being Laws 1992,
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0013| Chapter 10, Section 15, as amended) is amended to read:
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0014| "61-28A-15. REGISTRATION--FIRMS.--
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0015| A. All firms that are engaged in the practice of
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0016| public accountancy in New Mexico shall register annually with
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0017| the board.
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0018| B. Registration of firms shall require that:
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0019| (1) a sole practitioner shall be a holder of a
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0020| current permit;
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0021| (2) any partnership desiring registration as a
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0022| firm shall be composed solely of partners who hold current
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0023| permits;
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0024| (3) any corporation shall be organized under
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0025| the Professional Corporation Act or similar provisions of the
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0001| laws of another state, and all shareholders shall hold current
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0002| permits;
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0003| (4) any limited liability company shall be
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0004| organized under the Limited Liability Company Act or similar
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0005| provisions of the laws of another state and all members shall
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0006| hold current permits;
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0007| [(4)] (5) if any partner, shareholder or
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0008| member is a partnership, corporation, limited liability
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0009| company or other form of business entity permitted by state
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0010| law, that partnership, corporation, limited liability company
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0011| or other form of business entity permitted by state law shall
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0012| be a registered firm; [and
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(5)] (6) any partnership, corporation,
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0014| limited liability company or other form of business entity
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0015| permitted by state law seeking registration as a firm to allow
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0016| it to engage in the practice of public accountancy in New
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0017| Mexico shall provide documentation to the board that all
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0018| partners, shareholders or members practicing in New Mexico hold
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0019| current permits and that all partners, shareholders or members
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0020| in the firm not practicing in New Mexico are duly authorized to
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0021| practice public accountancy in a reciprocal jurisdiction; and
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0022| (7) prior to December 31, 1998, the board
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0023| shall establish by rule a peer review program under which a
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0024| registered firm shall undergo a peer review at least once every
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0025| three years. The rule shall require firms that contract to
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0001| perform audits of state agencies, as defined in the Audit Act,
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0002| to comply with federal or state peer review standards
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0003| applicable to those audits. The rule shall require a firm
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0004| registering pursuant to the provisions of this section to
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0005| provide documentation to the board that it meets the
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0006| requirements of the peer review program. The rule shall
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0007| establish standards for granting continuing professional
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0008| education credits to practitioners during the years in which
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0009| their firms undergo peer reviews.
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0010| C. Application for registration [under] pursuant
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0011| to provisions of this section shall be made upon affidavit of
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0012| individuals and in a form specified by the board.
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0013| D. Registration shall be denied to any firm that
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0014| has failed to comply with any provision of the Public
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0015| Accountancy Act.
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0016| E. Failure of a firm practicing public accountancy
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0017| in this state to file an annual application for registration
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0018| renewal is cause for suspension or revocation of the right of
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0019| the firm to practice in New Mexico.
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0020| F. The board may collect a registration fee
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0021| prescribed by board rule not to exceed fifty dollars ($50.00)
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0022| from firms required to register [under] pursuant to
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0023| provisions of this section.
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0024| G. Any registered firm whose registration has been
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0025| [cancelled] canceled for failure to pay the annual renewal
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0001| fee may secure reinstatement of its registration at any time
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0002| within three months following June 30 of the year of the
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0003| delinquent payment upon payment of the annual renewal fee and
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0004| of a delinquency fee prescribed by board rule not to exceed
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0005| fifty dollars ($50.00). After the three-month period, no
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0006| registration shall be reinstated except upon application [and
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examination] satisfactory to the board."
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0008|
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0009|
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0010| FORTY-THIRD LEGISLATURE
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0011| FIRST SESSION, 1997
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0012|
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0013|
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0014| March 10, 1997
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0015|
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0016| Mr. President:
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0017|
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0018| Your PUBLIC AFFAIRS COMMITTEE, to whom has been
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0019| referred
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0020|
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0021| SENATE BILL 692
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0022|
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0023| has had it under consideration and reports same with
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0024| recommendation that it DO PASS.
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0025|
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0001| Respectfully submitted,
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0002|
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0003|
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0004|
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0005|
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0006| __________________________________
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0007| Shannon Robinson, Chairman
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0008|
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0009|
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0010|
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0011| Adopted_______________________ Not
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0012| Adopted_______________________
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0013| (Chief Clerk) (Chief Clerk)
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0014|
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0015|
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0016|
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0017| Date ________________________
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0018|
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0019|
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0020| The roll call vote was 5 For 0 Against
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0021| Yes: 5
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0022| No: 0
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0023| Excused: Adair, Boitano, Vernon, Smith
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0024| Absent: None
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0025|
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0001|
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0002| S0692PA1
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